S.C. National Expects Profit
COLUMBIA, S.C. -- South Carolina National Corp. predicted net income of $5 million to $8 million for the third quarter after a provision for loan losses of $22 million to $26 million for commercial real estate loans.
The company, which has $7 billion in assets and a merger pending with North Carolina-based Wachovia Corp., said problem loans are expected to be about $100 million to $110 million, compared with $105 million at June 30. Problem assets are expected to be about $138 million to $148 million, compared with $126 million in the second quarter.
It estimated third-quarter chargeoffs at $16 million.
The provision will bring the allowance for loan losses to about $110 million to $114 million at the end of the third quarter, compared with $104 million at midyear.
Net chargeoffs for the second quarter, when the company earned $16.8 million and had a return on average assets of 0.96%, totaled $9 million.