Shares of United Community Banks Inc. (UCBI) fell sharply Thursday morning after the Blairsville, Ga., company reported earnings that came in well short of analysts' estimates.
The $6.7 billion-asset company said that its income available to shareholders in the second quarter declined 62% from the same period last year, to $3.5 million, as an increase in net chargeoffs led to a higher provision for loan losses. Its earnings per share of 6 cents missed consensus estimates by 10 cents, according to Thomson Reuters.
United Community's shares were trading at $6.62 midday Thursday, down nearly 13% from Wednesday's closing price.
Despite the increase in chargeoffs, the company said that its total nonperforming assets fell 10% from the prior quarter, to $15.8 million. Profits were also aided by sharp declines in both its interest and noninterest expense.