Gray-based Piedmont Community Bank Group Inc. announced a consolidated net loss of $178,131 for the first quarter of 2009, compared to consolidated net income of $29,666 for the same quarter last year.
As part of its quarterly report, the bank also reported that non-performing assets increased to $20.16 million, which was 10.51 percent of total gross loans. Piedmont’s provision for loan losses was $462,000 for the first quarter of 2009 compared to $274,000 for the first quarter of 2008. Amounts charged off during the first quarter of 2009 totaled $354,406 as compared to $180,009 in the first quarter of 2008.
“The weakness in real estate markets is particularly prevalent in the commercial and construction areas, where we have heavy concentrations,” the report stated.
To bolster the bank’s capital, it is offering up to $4 million in preferred stock through a private placement offering, the report stated. Features of the preferred stock include a 12 percent cumulative dividend and the ability to convert to common stock after one year.
“We expect that our capital ratios will improve if we are successful in raising proceeds from this offering,” the report states. “However, any further deterioration in our loan portfolio would cause our capital ratios to decline.”