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.
The profit fell 11 cents short of the average analyst estimate, according to Thomson Reuters.
The $8.2 billion-asset United Community said nonperforming assets increased 69% from the first quarter and 249% from a year earlier, to $152.2 million. Chargeoffs doubled from the first quarter and jumped 581% from a year earlier, to $14.3 million.
The company cited a special $15 million loan-loss provision for its ongoing trouble with the Spruce Pine real estate development in North Carolina. Excluding that, the loan-loss provision more than doubled from the first quarter and fell 17% from a year earlier, to $15.5 million.
Jimmy Tallent, United Community's president and chief executive, said in a press release that it expects foreclosures and chargeoffs to rise over the next two quarters.
By late Thursday its shares had fallen 10.8% from Wednesday's close, to $11.14.
