United Community Banks Inc. in Blairsville, Ga., said Monday that it expects to report a third-quarter loss of about $40 million, or 84 cents a share, as it continues to work through problem loans to home builders.

The $8.3 billion-asset United Community earned $22.5 million, or 46 cents a share, in the third quarter of last year.

It attributed the loss to rising chargeoffs and delinquencies in its residential construction portfolio. It expects to report that third-quarter chargeoffs jumped 977% from a year earlier, to $56 million, and that nonperforming assets rose 17%, to $178 million.

United Community executives said it would remain well capitalized. At the end of August it secured a $30 million loan to boost its capital position, and Rex S. Schuette, its chief financial officer, said in a conference call Monday that it expects to raise $10 million to $15 million this month through an internal offering of trust-preferred securities.

Shares of United Community decreased 9.3% Monday, to $12.70.

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