UPDATE 1-Guaranty Financial posts Q3 loss on charges
* Q3 net loss of $4.89 a share
* Provisions increase 4-fold
* Raised $562 million in capital in Q3
Nov 5 (Reuters) - Guaranty Financial Group Inc GFG.N, the savings and loan battered by the housing market crisis, posted a $162 million quarterly loss hurt by a deferred income tax charge, impairment charge on a mortgage-backed security and high provision for bad loans.
The company, which has been struggling with its investments in the mortgage market, said total charges for the quarter, primarilly non-cash totalled $152 million.
Sequentially, the quarterly loss nearly doubled while provision for bad loans fell by about $21 million.
Guaranty said it raised $562 million in capital in a private placement closed and funded during the third quarter.
"We are pleased to have completed the private placement during the quarter that resulted in approximately $600 million of new capital since May 2008, which strengthened our balance sheet and liquidity position," Chief Executive Ken Dubuque said.
The company has also recently benefited from a net inflow of $1.8 billion in deposits in the month of October alone, which is an increase of about 20 percent since the end of September, Dubuquesaid.
Investors in the thrift, which was spun off by Temple-Inland Inc (TIN.N) last year, include billionaire Carl Icahn and Texas businessman Robert Rowling.
Net interest income fell 16 percent in the quarter.
Shares of the company closed at $1.76 on Tuesday on the New York Stock Exchange.
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For a company press release, double click on [ID:nBw055312a] (Reporting by Sweta Singh in Bangalore, Dinesh Nair)
