The corporate parent of Four Oaks Bank & Trust today reported a third-quarter loss of $547,000.
The quarterly loss, which amounts to eight cents per share, compares to a year-ago profit of $1.4 million a year ago.
The Johnston County-based bank attributed the loss to a hike in its provision for loan losses due to an increase in problem loans. The provision was $10.5 million as of Sept. 30, up from $1.6 million.
That increase obscured several improving fundamentals, including a 13 percent increase in net interest income compared to a year ago, and has risen in each of the last three quarters, according to the bank.
"A lot of things are going right," said CEO Ayden Lee. "Eventually we will work through this cycle."
Lee said the bank is poised for earnings growth when the economy improves.
Four Oaks has 17 branches in North Carolina and has agreed to acquire Nuestro Banco, the struggling Garner bank that is focused on the Hispanic community, for about $2.7 million. That deal is awaiting approval from the Federal Reserve.
David Ranii has been a business reporter at The News & Observer since 1993. Over the years he has covered information technology, banking, insurance, the pharmaceutical and biotechnology industries, media businesses and real estate. Contact him at 919-829-4877 or 
