Southern Community Financial Corp. in Winston-Salem, N.C., warned Tuesday that its provision for loan losses would increase to $6 million in the second quarter because of accelerated chargeoffs.

The $1.8 billion-asset company estimated that net chargeoffs would be $5.7 million to $5.9 million, about double their level in the first quarter. On an annualized basis the chargeoff rate would rise to 1.78% to 1.84% of average loans, up from 1.09%.

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