United Community Bancshares Inc. in Blairsville, Ga., has not reported a profitable quarter since mid-2008, but its chief executive said Thursday that he expects that to change starting this quarter.
Though the $8 billion-asset company reported a loss of $142 million in the quarter that ended March 31, CEO Jimmy Tallent said in a news release that steps it took recently—raising $380 million in fresh capital and unloading nearly $345 million of problem loans—"are key accomplishments toward our goal of achieving sustained profitability beginning in the second quarter of 2011."
United raised the capital by selling common and preferred stock to an investment group led by an affiliate of Corsair Capital LLC. The investors now own roughly 22.5% of United's voting and non-voting stock.
The sale of the troubled assets, mostly related to real estate, reduced total nonperforming assets to their lowest level in three years. Nonperformers totaled $138 million at March 31, down 57% from just three months earlier and 67% from the same period last year. United intends to continue selling off substandard and nonperforming loans in the second and third quarters.
As part of its plan to quickly and aggressively dispose of problem loans, the company also said that wrote down the value of foreclosed properties to 30% of the unpaid principal.
