United Community Banks Inc. in Blairsville, Ga., reported a fourth-quarter loss of $46.7 million, or 99 cents per share, as problem loans to home builders piled up.
The $8.5 billion-asset company earned $4.2 million, or nine cents per share, the year earlier.
For the year, United said it lost $63.5 million, or $1.35 per share, compared with a profit the year before of $58 million, or $1.24 per share.
"Challenges in the housing market, particularly in Atlanta, continued to have a significant impact on our loan portfolio and earnings in the fourth quarter," said Jimmy Tallent, the president and chief executive officer.
Net chargeoffs for the quarter were $74 million, up 33% from the previous quarter, and nonperforming assets rose 41%, to $250 million. The loan-loss provision for the year was $184 million, up nearly 400%.
Mr. Tallent said the company is aggressively disposing of problem assets and its "strong capital position enables us to absorb losses without impairing our financial soundness."
Its capital was bolstered in December when it sold $180 million of preferred stock and warrants to the Treasury Department. United also raised $13 million in October through a private placement of trust-preferred securities.
Mr. Tallent also said he expects the net interest margin, off more than 100 basis points year over year, at 2.70%, to rise this quarter because United has cut deposit rates and continues to let brokered deposits run off.
In heavy trading, United's shares closed at $6.62 Friday, down 6.8%.
