UCB, Inc., reports 1st quarterly profit since 2008

BLAIRSVILLE - United Community Banks, Inc. reports net income of $7.6 million, or 8 cents per diluted share, for the second quarter of 2011.

Bank officials say the year-to-date net loss of $135 million reflects the significant credit losses in the first quarter incurred in connection with the Problem Asset Disposition Plan which was announced last quarter in conjunction with the raising of $380 million in new capital.

"The de-risking of our balance sheet and capital transaction, coupled with the execution of the Problem Asset Disposition Plan in the first quarter allowed us to return to profitability much sooner than would have otherwise been feasible," stated Jimmy Tallent, president and chief executive officer of the Blairsville-based bank. "While we still have work to do in this difficult economic environment, our credit trends show improvement by every measure and we expect that positive trend to continue."

Total loans were $4.2 billion at quarter-end, down $31 million from the end of the first quarter and $710 million from a year earlier.