United Community in Ga. Dodges SEC Action on Accounting Items

The Securities and Exchange Commission will not punish United Community Banks (UCBI) after an accounting investigation, the Blairsville, Ga., company said Monday.

The SEC concluded its review of the $6.8 billion-asset company's allowances for a deferred tax asset and some goodwill impairment charges in 2009 and 2010, and took no action, United Community said.

"We are pleased to learn that the staff of the SEC had completed its process and no enforcement action against United is to be recommended," Chief Executive Jimmy Tallent said in the news release. "We place a premium on regulatory compliance in everything we do. We are gratified this matter is over and fully behind United."

The SEC sent United Community a subpoena and a formal letter of investigation in May 2012.  The investigation followed United Community's announcement that it would restate four quarters of earnings to reflect an additional expense of $156.7 million in order to establish the deferred tax valuation allowance.

Last month United Community amended its results for the fourth quarter of 2012 to reflect a $4 million settlement with FILBH Co-Investments, which had accused the company of breaking an agreement giving it the right to purchase United Community's preferred shares.  The restatement lowered United Community's quarterly profit by 43%, to $5.3 million.