United Community Banks (UCBI) says it will defer regularly scheduled interest payments on its $54.6 million of outstanding junior subordinated debentures relating to its trust preferred securities. This decision was the result of Federal Reserve policies related to dividend and other interest payments in light of stressed market conditions.
The deferral, which affects payments on its $54.6 million of junior subordinated debentures, would total $4.7 million a year, and the bank can defer the interest payments for up to five years under Federal Reserve policies.
Shares were last down 0.51% in late trade, off session lows.