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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): SEPTEMBER 25, 1998
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BANK OF GRANITE CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-15956 56-1550545
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
P.O. Box 128, 23 North Main Street, Granite Falls, N.C. 28630
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(Address of Principal Executive Offices) (Zip Code)
(Registrant's telephone number, including area code) (828)496-2000
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Not Applicable
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(Former Name or Former Address, if changed since last report)
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Bank of Granite Corporation, Form 8-K, September 29, 1998, page 1 of 5
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INDEX
BANK OF GRANITE CORPORATION
Page
Item 5 - Other Events 3
Item 7 - Exhibits 3
Signatures 4
Exhibit 99 (a) News Release dated September 25, 1998 5
Bank of Granite Corporation, Form 8-K, September 29, 1998, page 2 of 5
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Item 5 - Other Events
(a) On September 25, 1998, the Registrant announced that third quarter
earnings will decline due to a before tax charge of approximately $3,140,000,
amounting to $1,884,000, or 16.5 cents per share, after tax.
The charge will result from increasing the loan loss reserves of the
Registrant's banking subsidiary because of the inability of one of the banking
subsidiarys borrowers to repay loans which the banking subsidiary had made
for a period extending over several years. The Registrant had hoped that this
borrower's business would improve and the borrower, a textile related plant,
was even showing positive cash flows in mid-summer, but the cash flows proved
to be short-lived.
Depending on the realizable value of the plants assets and orders
in process, the subsidiary bank may ultimately recover an undetermined amount
of the loss which will be booked as a recovery in the period in which it is
received.
The Registrant expects to report its third quarter earnings on or about
October 13.
This filing, including exhibits, may contain forward looking statements
within the meaning of the Private Securities Litigation Reform Act. The
accuracy of such forward looking statements could be affected by such factors
as, including but not limited to, the financial success or changing strategies
of the Company's customers, actions of government regulators, or general
economic conditions.
The news of this event was released on September 25, 1998, as evidenced
by Exhibit 99(a) to this Form 8-K.
Item 7 - Exhibits
99 Additional Exhibits
(a) News Release dated September 25, 1998
Bank of Granite Corporation, Form 8-K, September 29, 1998, page 3 of 5
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BANK OF GRANITE CORPORATION
September 29, 1998 BY: /s/ Kirby A. Tyndall
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Kirby A. Tyndall
Senior Vice President
and Chief Financial Officer
Bank of Granite Corporation, Form 8-K, September 29, 1998, page 4 of 5