The share price of Bank of Granite Corp. has nearly tripled in the past two weeks, with some analysts speculating that the struggling community bank could be bought by a rival bank.
Analysts said that investors also could be gaining confidence in the bank's recent performance in handling problem loans. The bank, based in Granite Falls, has a branch and its mortgage division in Winston-Salem.
The share price rose as much as 25 percent Thursday before closing up 30 cents to $1.50. The trading volume was 503,481 shares — about 7 1/2 times the normal daily volume.
The share price hit a 52-week low of 40 cents on Dec. 18 and was at 51 cents on Dec. 31.
Scott Anderson, the president and chief executive of the bank, declined to comment.
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. 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.
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 has until May 11 to comply — having at least a $1 a share price for at least 10 consecutive business days before May 11.
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