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Tuesday, January 06, 2009

Talk about poor visibility ...

by Calculated Risk on 1/06/2009 01:56:00 PM

United Community Banks, Inc. warned today:

The estimate for the fourth quarter loan loss provision is $85 million, with an expected $74 million in charge-offs ...
In Q3, the loan loss provision was $76 million with $56 million in net charge-offs. So Q4 was worse.

But this is funny (hat tip Brian): Back on their Oct 23rd conference call, UCBI told investors:
Charge-offs will continue to be elevated as we work through our problem credit, but we certainly don't see a recurrence of the third quarter charge-off level in the immediate future.
emphasis added
Oops. I guess the next quarter was not the "immediate future".