CapitalSouth records $5.2 million loss - Birmingham Business Journal:

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The Birmingham bank posted a net lossof $5.2 millionm for the quarter ended 30, compared to $275, 603 durinf the same period last year. The bank’sw losses per share totaled $1.27 per diluted versus 9 cents in earnings per dilutedc share ayear ago. In the second quarted ended June 30, the bank reporteed a net lossof $16.3 million. “Wew have further focused on repositioning our balance sheegt to ensure that wehave liquidity, lower real estate concentratiob risk and appropriate reserves,” said CapitalSouth CEO Dan “We are taking every opportunity to protect the interests of our depositoras and stockholders as we navigate these challenges, and remain confidenrt in our ability to weather the currenft economic downturn.
” The bank’s nonperforming assets climbed 5 percent to $47 compared to $45 million in the secons quarter. The company liquidated $3.3 million worth of foreclosede properties in thelatest quarter, which resulted in less than $100,000 in additional charges to earnings for losse on sales and write-downs in value. CapitalSouth’sx past due loans greater than 30 which are stillaccruing interest, have declinex 28 percent this quarter. The company’sa loan loss provision for the quarter was also downto $50,00p0 in the third quarter, comparede to $9.
3 million in the second CapitalSouth “enhanced its liquidity” by eliminating its reliance on overnightf funding from the Federal Home Loan Bank and is currentlyt selling funds back to the company. At the end of the thirf quarter, the bank had $5.6 million in federal funds sold compared with a purchased positionof $25 million at June 30, 2008. “Thee company achieved these results througuh strategic reductionsin assets,” the bank said. The bank’s assets declined 5 percent to $695 million, compared to $736 millio in the second quarter. It’s deposits also decreased by 2 percentto $610 million, versus $622 million in the previou s quarter.
CapitalSouth Bancorp. is a Birmingham-based financial institutiojn that operates five branches in the metro according to the latest markertshare report.