The third-quarter financial loss of a bank with several local branches added to the financial insecurity gripping Fayette’s residents over the last few weeks.

According to MarketWatch, United Community Banks Inc. the Blairsville, Ga., bank-holding company, said on Monday that it would report a third-quarter loss of 84 cents a share after increasing its allowance for possible losses on bad loans to 1.91 percent of total loans from 1.53 percent at June 30.

The bank has branches in Fayetteville, Tyrone, Newnan, Fairburn and Palmetto.

The loss report reflected “continued credit deterioration in the residential-construction portfolio,” UCBI said. The loss equals a total $39.9 million.

“United continues to maintain a very strong capital position, well above the regulatory guidelines to be considered well-capitalized,” President and Chief Executive Jimmy Tallent said in a statement.

The bank’s loss, along with the continuing tug of war over Wachovia between Citigroup and Wells Fargo, is causing many residents to wonder about the future of their retirement funds.

On Tuesday afternoon, the Dow Jones Industrial’s losses were significantly smaller than Monday’s, but financial advisors throughout the county were slammed with calls from nervous customers.

In Peachtree City, Edward Jones’ financial advisor Michele Hall said now is not the time to panic.

“What’s happening is people are starting to see a demise in their investments, but if you start selling you create a permanent loss,” she said.

Hall’s phones have been ringing from residents who are upset over the downturn, but Hall said she knows things will get better.

“We’ve got history on our side. The markets have always recovered after any significant downturn,” she added.

In the meantime, Hall said residents should pinpoint their risk exposures and have financial goals in mind.

“There are a lot of good corporations out there, that for lack of a better term, are ‘on sale.’ These are potentially good investments for many residents,” she said.

login to post comments