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Bank of Granite avoids delisting

From staff reports

Published: February 5, 2010

GRANITE FALLS - Bank of Granite Corp. has regained compliance with the Nasdaq Stock Market listing rules.

In November, Bank of Granite said it was no longer in compliance with the Nasdaq Stock Market's rule of a minimum $1 bid price for its shares.

The bank was given until May 11 to comply — having at least a $1 a share price for at least 10 consecutive business days before May 11.

The share price of Bank of Granite Corp. hit a 52-week low of 40 cents on Dec. 18. It was at 51 cents on Dec. 31. The bank's shares surged in early January to more than $2 and have continued to trade above the $1 cutoff. Shares traded at $1.13 in late trading Thursday.

Bank of Granite also offered a preview of its 2009 earnings. In a press release, the bank said it does not expect to lose more than $26 million in 2009 or more than $13 million in the fourth quarter.

"The results and particularly the credit issues are reflective of the economy in our footprint and the general decline in asset values of all classes," Scott Anderson, chief executive officer, said.

"The uncertainty of values and the determination of all of our recourse are the processes we must complete to give us our best estimate of the risk in our loan portfolio. The process is time consuming; however, our best estimate is the overriding goal."

The bank's annual report is due March 31.

Bank of Granite had a tough year in 2009. In September, the bank was placed under an "order to cease and desist" from the Federal Deposit Insurance Corp. and the N.C. Commissioner of Banks.

Such an order is aimed at "providing a road map for bank management to address those weaknesses to the satisfaction of the FDIC and the commission," said Ray Grace, the state banking commission's director of bank applications.