United Community Banks Inc. in Blairsville, Ga., said Wednesday that its fourth-quarter earnings fell 78% from a year earlier, to $4.2 million. Earnings per share fell 80%, to 9 cents.
The $8.2 billion-asset company attributed the drop to weakening real estate conditions in its markets and exposure to two residential developments near Spruce Pine, N.C., that turned out to be fraudulent.
For the year, United charged off $18 million of loans related to the developments.
"We continued negotiations related to Spruce Pine during the fourth quarter and have been in contact with all of the borrowers or their counsel," Jimmy Tallent, United's president and chief executive officer, said in a press release.
"Even though we charged off these loans, we will seek full recovery, and in the past 30 days we have reached settlement with several borrowers."
