BANK OF GRANITE CORP

CIK:0000810689|SEC Filings

Earnings Per Share	6 Months Ended
Jun. 30, 2011
Earnings Per Share
Earnings Per Share	6. EARNINGS PER SHARE Earnings per share have been computed using 15,454,000 shares of common stock outstanding as there have been no changes during the periods reported. The levels of outstanding stock options are insignificant and are not included for any period because their inclusion would be anti-dilutive.

Earnings Per Share

6 Months Ended

Jun. 30, 2011

6. EARNINGS PER SHARE

Earnings per share have been computed using 15,454,000 shares of common stock outstanding as there have been no changes during the periods reported. The levels of outstanding stock options are insignificant and are not included for any period because their inclusion would be anti-dilutive.

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net loss	$ (5,211)	$ (16,861)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	587	735
Provision for loan losses	6,006	20,603
Investment security premium amortization, net	394	896
Deferred income taxes	0	(89)
Gains on sales or calls of securities available for sale	(49)	(235)
Losses on writedowns or sale of other real estate	2,925	3,114
Losses on disposal of miscellaneous assets	382	10
Decrease in other assets	1,540	3,378
Decrease in taxes payable	0	(7)
Decrease in accrued interest receivable	284	150
Decrease in accrued interest payable	(258)	(249)
Decrease in other liabilities	(794)	(368)
Net cash provided by operating activities	5,806	11,077
Cash flows from investing activities:
Proceeds from maturities, calls and paydowns of securities available for sale	14,493	38,253
Proceeds from sales of securities available for sale	133,434	70,822
Purchase of securities available for sale	(142,461)	(155,448)
Net decrease in loans	58,867	94,975
Capital expenditures, net of proceeds from sale of miscellaneous assets	251	0
Proceeds from sales of other real estate	4,798	1,891
Net cash provided by investing activities	69,382	50,493
Cash flows from financing activities:
Net decrease in demand, NOW, money market and savings deposits	(17,182)	(35,397)
Net decrease in time deposits	(45,459)	(22,564)
Net increase in short-term borrowings	6,000	7,000
Net decrease in long-term borrowings	(6,000)	(8,000)
Net cash used in financing activities	(62,641)	(58,961)
Net increase in cash equivalents	12,547	2,609
Cash and cash equivalents at beginning of period	47,224	73,374
Cash and cash equivalents at end of period	$ 59,771	$ 75,983

Condensed Consolidated Balance Sheets (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Assets:
Cash and due from banks	$ 57,245	$ 45,982
Interest-bearing deposits	2,526	1,242
Total cash and cash equivalents	59,771	47,224
Investment securities:
Available for sale, at fair value	249,498	255,104
Loans	476,788	562,124
Allowance for loan losses	(21,115)	(28,273)
Net loans	455,673	533,851
Premises and equipment, net	12,446	13,666
Accrued interest receivable	3,054	3,338
Other real estate owned	17,187	11,605
Other assets	9,431	11,052
Total assets	807,060	875,840
Liabilities and Stockholders' Equity:
Interest-bearing	671,746	729,962
Noninterest-bearing	87,920	92,345
Total deposits	759,666	822,307
Short-term borrowings	24,000	18,000
Long-term borrowings	0	6,000
Accrued interest payable	788	1,046
Other liabilities	3,303	4,097
Total liabilities	787,757	851,450
Stockholders' equity:
Common stock, $1.00 par value per share Authorized - 25,000 shares Issued - 18,981 shares in 2011 and 2010 Outstanding - 15,454 shares in 2011 and 2010	18,981	18,981
Additional paid-in capital	30,195	30,195
Retained earnings	23,433	28,644
Accumulated other comprehensive loss, net of deferred income taxes	(1,454)	(1,578)
Less: Cost of common stock in treasury; 3,527 shares in 2011 and 2010	(51,852)	(51,852)
Total stockholders' equity	19,303	24,390
Total liabilities and stockholders' equity	$ 807,060	$ 875,840