As its loan troubles continue to mount, United Community Banks Inc. in Blairsville, Ga., said Thursday that second-quarter earnings dropped 40% from a year earlier, to $7 million, or 15 cents a share.

Pacific Capital Bancorp in Santa Barbara, Calif., said Wednesday that its credit troubles are starting to spread beyond residential construction loans.

A bank focused on protecting the environment plans to open in Philadelphia early next year after raising $2 million in initial capital from 35 investors.

Prosperity Bancshares Inc. in Houston said second-quarter earnings grew almost 2% from a year earlier, to $23 million, or 52 cents a share.

Capital Corp of the West in Merced, Calif., said Wednesday that it has reached an agreement with the Federal Reserve Board to improve its risk management and credit administration practices.

Cullen/Frost Bankers Inc. of San Antonio said Wednesday that its second-quarter earnings fell 2% from a year earlier, to $52.5 million.

MIDWEST

Capital City Bank Group Inc. in Tallahassee, Fla., said Tuesday that rising nonperforming loans caused its second-quarter earnings to fall 39% from a year earlier, to $4.8 million.

With loan losses mounting in Florida and Alabama, Whitney Holding Corp. in New Orleans said Tuesday that its second-quarter earnings plunged 57% from a year earlier, to $12.9 million.

Banking trade groups say a federal court ruling against a sprawling community charter for a Pennsylvania credit union is an "important" victory for the industry.

Shares of Sterling Bancshares Inc. in Houston fell 13.4% in heavy trading Tuesday, to $8.12, after the company posted second-quarter earnings that fell short of analysts' expectations.

Shares of Washington Trust Bancorp Inc. in Westerly, R.I., fell Tuesday, even though strong loan growth helped the company's second-quarter earnings climb 12.5% from a year earlier, to $6.1 million.

Tennessee Commerce Bancorp Inc. in Franklin is being sued by its former chief financial officer, who claims he was fired for alerting regulators to possible misconduct by company executives.

Sun Bancorp Inc. in Vineland, N.J., said Monday that its second-quarter earnings fell 53% from a year earlier, to $2.3 million, primarily because its loan-loss provision rose nearly sixfold, to $6.5 million.

Still struggling to work through its bad residential construction loans, West Coast Bancorp in Lake Oswego, Ore., said Monday that its second-quarter earnings fell 67% from a year earlier, to $2.7 million.

S&T Bancorp Inc. in Indiana, Pa., said Monday that second-quarter earnings were flat, at $13.9 million, despite a 16% increase in net interest income.

Sun Bancorp Inc. in Vineland, N.J., said Monday that its second-quarter earnings fell 53% from a year earlier, to $2.3 million, primarily because its loan-loss provision rose nearly sixfold, to $6.5 million.

Merger and acquisition activity is at a trickle for most of the banking industry, but Valley National Bancorp in Wayne, N.J., is just revving up.

Shares of Peoples Bancorp of North Carolina Inc. in Newton soared Monday after the company reported second-quarter earnings that beat analyst expectations.

Pinnacle Financial Partners Inc. of Nashville said Friday that it plans to raise $36.5 million in capital to support its growth.