United Community Banks (UCBI) in Blairsville, Ga., said it expects to report earnings of $14 million to $15 million for the first quarter.
The $7 billion-asset company made the disclosure as part of a prospectus supplement filed Tuesday to sell up to 640,000 shares of common stock as part of a limited at-the-market offering. The earnings would translate into 24 cents to 25 cents a share. United Community earned $13 million in the fourth quarter and $8.7 million in the first quarter of 2013.
United Community said it plans to use some of the proceeds from the offering to repurchase the warrant originally issued to Fletcher International and to resolve all other claims tied to its settlement with Fletcher's bankruptcy trustee. Fletcher was a New York hedge fund that held stock rights and warrants in United Community as part of a complex investment.
United Community settled litigation early last year tied to claims by FILB Co-Investments that the banking company broke an agreement to sell shares of preferred stock to Fletcher International, FILB's predecessor.