United Community Banks Inc. is finally back in the black after it unloaded scores of problem assets and raised $380 million of fresh capital.
The Blairsville, Ga., company said Thursday that it earned $4.6 million, or eight cents per diluted share, in the three months that ended June 30, ending its string of 11 consecutive money-losing quarters. The $7.4 billion-asset United lost $62.1 million in last year's second quarter and $145.3 million just three months earlier.
In a news release, United President and Chief Executive Officer Jimmy Tallent attributed the turnaround to a series of bulk loan sales that have reduced its total nonperforming assets by 63%since the end of 2010, to $118.7 million, as well as a capital infusion that has helped to start rebuilding its pipeline of loans. The company raised the $380 million earlier this year through a stock sale to investor group led by an affiliate of Corsair Capital LLC.
"The de-risking of our balance sheet and capital transaction, coupled with the execution of the [loan sale]...allowed us to return to profitability much sooner than would have otherwise been feasible," Tallent said in a news release.
In early trading Thursday, United's shares were already up 3% from Wednesday's close, to $10.85.