The corporate parent of Four Oaks Bank & Trust has reached its previously announced goal of raising $12 million by selling promissory notes, according to documents filed with the Securities and Exchange Commission.
The Johnston County-based bank sold the notes to boost its capital.
"Since we were already well-capitalized, this makes us more well-capitalized," said Nancy Wise, chief financial officer.
The completion of the promissory note sale comes on the heels of the bank's July 29 announcement that its second-quarter loss was better than the bank had previously projected.
Four Oaks posted a loss of $705,000, or 10 cents per share in the second quarter, compared to the loss of between $1 million and $1.5 million that the bank projected in mid-July.
The loss wasn't as large as anticipated thanks to more-than-expected income tax benefits stemming from the loss, said Wise.
The second-quarter loss, which compares to a profit of $964,000 a year earlier, stemmed from an increased provision for loan losses and higher payments to the Federal Deposit Insurance Corp. The FDIC is charging higher insurance premiums and recently levied a special assessment against all banks to shore up its insurance fund, which has been depleted by bank failures.
Four Oaks has 17 branches in eight North Carolina counties and has agreed to buy Nuestro Banco, the struggling Garner bank focused on the Hispanic community.