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United Community Banks in Blairsville, Ga., received a subpoena and a notice of formal investigation from the Securities and Exchange Commission related to its deferred tax asset valuation allowances and goodwill impairment charges taken in 2009 and 2010.
May 17
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.
