Shares of StellarOne Financial Corp. fell sharply Tuesday after the Charlottesville, Va., company said chargeoffs and nonperforming assets roughly doubled in the third quarter from three months earlier.
The $2.6 billion-asset StellarOne, formed this year through a merger of two Virginia banking companies, said after the markets closed Monday that losses on development loans in the Smith Mountain Lake, Va., have accelerated and that it expects to charge off $2.5 million for the quarter.
It said net third-quarter chargeoffs would be about 0.44% of average loans, up from 0.22% on June 30, and said its ratio of nonperforming assets to total loans would be 2.2%, up from 1.13%. It is to report its results for the quarter this month.
StellarOne's stock closed at $15.13 per share Tuesday, down 16.7%.