UPDATE 2-First State says is undercapitalized; Q3 loss widens

* Q3 loss/shr $2.49 vs loss/shr $0.09 last yr

* Q3 est loss/shr $1.27

* Net interest income down 42 pct to $18.3 mln

* Loan-loss provisions $52.5 mln vs $15.6 mln yr ago

* Shares plunge 36 pct (Recasts, adds details, updates share movement)

Nov 2 (Reuters) - First State Bancorp FSNM.O, the parent company of First Community Bank, posted a wider quarterly loss as net interest income fell and provision for bad debt soared and said it was considered undercapitalized, sending its shares plunging 36 percent.

First State said at Sept. 30 it was considered undercapitalized as per its Tier 1 leverage ratio, while First Community Bank's status fell to adequately capitalized.

First Community Bank had been considered well capitalized as on June 30, following the sale of its Colorado branches to Great Western Bank, a South Dakota-based subsidiary of National Australia Bank (NAB.AX).

First State said that under regulatory guidelines, it was prohibited from accepting, renewing, or rolling over brokered deposits except with a waiver from the Federal Deposit Insurance Corp (FDIC) due to its capital status.

The bank has not received a waiver from the FDIC, First State said.

From late October through Dec. 31, about $66 million in brokered deposits will not be renewed, the company said in a statement.

For the third quarter, net loss was $51.5 million, or $2.49 per share, compared with a net loss of $1.8 million, or 9 cents a share, last year.

Analysts on average were expecting a loss of $1.27 a share, according to Thomson Reuters I/B/E/S.

Net interest income at the Albuquerque, New Mexico-based company fell 42 percent to $18.3 million.

Provision for loan losses was $52.5 million, up from $15.6 million a year earlier, while net charge-offs were at $47.1 million as on Sept. 30.

"We don't think this level of provisioning will be necessary in the future and believe that the worst may now be behind us," Chief Executive Michael Stanford said.

Shares of the company fell 36 percent before paring some losses to trade down 28 cents at 70 cents Monday morning on Nasdaq. The stock traded as high as $4.09 in November last year. (Reporting by Brenton Cordeiro in Bangalore; Editing by Vinu Pilakkott and Deepak Kannan)