Blairsville’s United Community Banks to sell stock to Treasury

United Community Banks, the third-largest banking company based in Georgia, said Monday it has received preliminary approval to sell $180 million in preferred stock to the U.S. Treasury as part of the government’s economic bailout program.

Officials with the Blairsville-based bank said they’d use the money in part to add to their capital base and boost lending.

“The significant increase in capital will add to an already successful strategy of supporting the growth within our communities though smart, responsible lending to both existing and new customers,” Jimmy Tallent, United’s president and chief executive officer, said in a news release.

As part of the deal, the government received warrants with the right to purchase $27 million in common stock, the company said.

United is the third Georgia bank to be granted approval to sell shares to the government, following SunTrust Banks and Synovus.

United operates 27 community banks in Georgia, North Carolina and Tennessee. About 40 branches are in metro Atlanta, most outside I-285.

The bank has been hard hit by the collapse of the real estate bubble in metro Atlanta. The bank reported a $40 million loss in the third quarter.

Craig Metz, United’s marketing director, said the government’s decision to invest in the bank is a stamp of approval.

“Basically, the Treasury is only investing in well-capitalized, well-run banks,” Metz said in an interview. “It’s a statement that people’s money is safe with us.”