United Community Banks reported Thursday its first quarter loss quadrupled to $145.3 million as the bank slashed bad loans and stepped up its efforts to right its beleaguered balance sheet.
Blairsville-based United, fresh off a major infusion of investor cash last month, said its loss included heavy sell offs of soured loans and write downs in the value of other problem assets.
For the quarter, United reported net charge offs of $231.6 million, the vast majority of which were part of an “accelerated disposition” plan, including bulk loan sales.
United lost $35.8 million in first quarter 2010. On a per share basis, the first quarter 2011 loss was $1.57 compared to 39 cents in the quarter a year ago.
Non-performing assets, including foreclosed properties, were $138.1 million, down 57 percent from fourth quarter 2010 and down 67 percent since first quarter 2010.
United, the third-largest bank based in Georgia, has been hobbled by more than two years of real estate losses. United recently raised $380 million in investor cash, giving it the cushion to absorb losses.
"With classified assets at a more manageable level, we can turn our focus toward other activities,” United President and CEO Jimmy Tallent said.
Tallent said the company’s goal is to return to profitability in the second quarter.
United also got regulator approval to restart dividend payments on its government crisis aid that it suspended last quarter.
"[It's] still not an easy environment, but the company is on much better footing," said Chris Marinac, bank analyst with FIG Partners.
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