† Formulate and implement a plan to reduce the Bank's risk exposure in assets classified "substandard or doubtful" in the FDIC's most recent report of examination by 20 percent in 180 days; 40 percent in 360 days; 65 percent in 540 days and by 75 percent in 720 days;

† Have and retain qualified management of the Bank, and assess management and staffing needs, qualifications and performance;

† Assure the on-going participation of the Bank's Board of Directors in the affairs of the Bank;

† Analyze and reduce credit concentrations in the Bank's loan portfolio;

† Within 60 days, ensure full implementation of effective lending and collection policies;

† Cease to extend additional credit to any borrower who has a loan or extension of credit with the Bank that is classified as "Loss" or "Doubtful";

† Within 45 days, adopt and implement a plan regarding the Bank's liquidity, contingent funding and asset liability management and review and revise the plan on a quarterly basis;

† Not pay cash dividends without the prior written consent of the FDIC and the Commissioner;

† Neither renew, roll-over nor increase the amount of brokered deposits above the amount outstanding at the date of the Order without obtaining a waiver from the FDIC;

† Within 90 days of the Order, develop and implement a written strategic plan covering at least three years consistent with sound banking practices to improve the Bank's operating performance;

† Within 30 days of the Order, appoint a committee of the Board of Directors that is responsible for overseeing compliance with the Order and providing progress reports to the full Board regarding compliance with the Order; and

† Develop a budget designed to improve net interest margin, increase interest income, reduce discretionary expenses, and improve and sustain earnings.

The Bank is required to submit written progress reports on a quarterly basis with the FDIC and the Commissioner. A copy of the Order is included as Exhibit 10.1 and is incorporated herein by reference. The description of the Order set forth above does not purport to be complete and is qualified by reference to the full text of the Order. Item 7.01 - Regulation FD Disclosure
On September 4, 2009, the Corporation issued a press release announcing the Consent agreement with the FDIC and the Commissioner and the issuance of the Order. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 - Financial Statements and Exhibits The following exhibits are being furnished herewith:

Exhibit No.   Exhibit
10.1          Stipulation and Consent between Bank of Granite and the Federal Deposit
              Insurance Corporation and the North Carolina Commissioner of Banks and
              related Order to Cease and Desist.

99.1          Press release dated September 4, 2009 announcing the signing of a Consent
              to Order with the FDIC and the Commissioner.

Disclosures about Forward Looking Statements The discussions included in this document contain statements that may be deemed forward looking statements within the meaning of the Private Securities Litigation Act of 1995, including Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from these statements. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be forward looking statements. Such statements are often characterized by the use of qualifying words such as "expects," "anticipates," "believes," "estimates," "plans," "projects," or other statements concerning opinions or judgments of the Company and its management about future events. The accuracy of such forward looking statements could be affected by certain factors, including but not limited to, the financial success or changing conditions or strategies of the Company's customers or vendors, fluctuations in interest rates, actions of government regulators, the availability of capital and personnel, failure to comply with regulatory orders, and general economic conditions. For additional factors that could affect the matters discussed in forward looking statements, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

September 4, 2009 By: /s/ Jerry A. Felts Jerry A. Felts Chief Operating Officer and Chief Financial Officer