United Community Banks, Inc. Reports 13 Percent Gain in Diluted Earnings per Share for First Quarter 2007
BLAIRSVILLE, GA, Apr 17, 2007 (MARKET WIRE via COMTEX News Network) -- HIGHLIGHTS:
- Record First Quarter Earnings
- Diluted Earnings per Share of 44 Cents -- Up 13 Percent
- Net Income of $19.3 Million -- Up 21 Percent
- Loan and Fee Revenue Growth Drive Performance
- Completed Circling of Atlanta with Announcement of Gwinnett Acquisition
- Opened Two De Novo Offices
- Added to Standard & Poor's SmallCap 600 Index
United Community Banks, Inc. (NASDAQ: UCBI) today announced record financial results for the first quarter of 2007. Compared with the first quarter of 2006, the company achieved an 18 percent increase in total revenue, a 21 percent rise in net income and a 13 percent gain in diluted earnings per share.
Net income was $19.3 million for the first quarter of 2007, compared with $16.0 million for the same period of 2006. Diluted earnings per share increased to 44 cents from 39 cents a year ago. Total revenue on a taxable equivalent basis was $75.8 million compared with $64.2 million for the first quarter of 2006. Return on tangible equity was 17.18 percent and return on assets was 1.11 percent, compared with 17.66 percent and 1.09 percent, respectively, a year ago.
"United Community Banks delivered another quarter of record earnings for our shareholders," said Jimmy Tallent, president and chief executive officer. "We are especially pleased to report strong performance in light of a challenging operating environment."
Loans increased $818 million, or 18 percent, from a year ago, including $267 million from the acquisition of Southern National Bank that closed in December 2006. Excluding acquired loans, organic loan growth was 12 percent. "Year-over-year loan growth was strong, but we experienced a slower pace during the first quarter of 2007," Tallent said. "The slowdown was further impacted by a higher level of prepayments due to sales of customer businesses, construction developments and competitive pricing. With the slower loan growth, we have lowered our targeted range to 6 to 10 percent for the remainder of the year."
"At the same time, we look ahead with optimism," Tallent added. "We have a presence in 19 of the 100 fastest growing counties in the country and in four of the top 10. The population demographics are strong across our markets and employment opportunities are growing at a rapid pace in metro Atlanta."
Tallent noted that the company more than funded first quarter loan growth with core customer deposits, adding $137 million in transaction, savings and money market accounts while allowing more expensive time deposits to run off.
Also during the first quarter, United moved to fill an important gap in its metro Atlanta footprint by signing a definitive agreement to acquire Gwinnett Commercial Group, Inc. and its wholly owned subsidiary First Bank of the South. "First Bank of the South has an exceptional banking team and is the perfect partner for our company," Tallent said. "Its Gwinnett County presence allows us to fulfill our goal of completely encircling metro Atlanta. First Bank of the South also has locations in DeKalb, north Fulton and Walton counties, which are new metro Atlanta markets for United."
United also continued de novo expansion during the quarter with the opening of a second office in Cleveland, Tennessee and a third office that is located on the south side of Forsyth County in northern metro Atlanta. In addition, the company converted a loan production facility to a full-service office in the resort town of Blowing Rock in the North Carolina mountains. "We will continue to look for opportunities to expand our franchise in both new and existing markets, but at a slower pace in the near-term as we monitor trends in loan growth," Tallent said. "De novo expansion is a key component of our balanced growth strategy for building long-term shareholder value."
For the first quarter of 2007, taxable equivalent net interest revenue of $65.1 million reflected an increase of $9.1 million, or 16 percent, from the first quarter of 2006. Net interest margin was 3.99 percent for the first quarter of 2007 and the fourth quarter of 2006, compared with 4.06 percent for the first quarter of 2006. "Rising interest rates positively impacted our prime-rate loan portfolio over the past year," Tallent said. "However, this impact was offset by rising wholesale borrowing costs and higher costs associated with deposit generating programs in our new markets. These successful deposit programs concluded in the fourth quarter."
The first quarter provision for loan losses was $3.7 million, an increase of $200,000 from a year earlier and equal to the fourth quarter of 2006. Annualized net charge-offs to average loans was 11 basis points for the first quarter, equal to the first quarter of 2006 and down from 15 basis points for the fourth quarter of 2006. At quarter-end, non-performing assets totaled $14.3 million, compared with $8.4 million a year ago and $13.7 million at the end of the fourth quarter of 2006. Non-performing assets as a percentage of total assets was 20 basis points at quarter-end, compared with 19 basis points at December 31, 2006 and 14 basis points at March 31, 2006.
"Throughout most of 2006 we were at unsustainably low levels of non-performing assets," Tallent said. "Even with the slight rise at quarter-end, we continue to operate at the lower end of our long-term historic range of 20 to 35 basis points and well below peer banks. Strong credit quality, rooted in our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success."
Fee revenue for the first quarter grew by $2.6 million, or 22 percent, to $14.4 million from $11.8 million for the first quarter of 2006. Service charges and fees on deposit accounts increased $900,000 to $7.3 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Mortgage fees rose $710,000 to $2.2 million due to higher volumes and pricing of mortgages sold. Mortgage loans closed during the first quarter were $109 million compared with $77 million for the first quarter of 2006. Consulting fees were up $163,000, or 10 percent, from a year ago reflecting strong growth primarily in the advisory services practice.
Operating expenses increased $6.4 million to $44.8 million, a 17 percent increase from the first quarter of 2006. The Southern National acquisition accounted for approximately $1.2 million of the increase. Salaries and employee benefit costs were $28.3 million, $4.4 million higher than in the first quarter of 2006. This 19 percent increase was due to the increase in staff to support expansion activities and business growth, as well as higher health care costs. Communications and equipment expenses increased $436,000 to $3.8 million due to further investments and upgrades in technology and equipment to support business growth and additional banking offices. Occupancy expense increased $259,000 to $3.2 million reflecting the increase in costs to operate additional banking offices. Postage, printing and supplies expense rose $144,000 to $1.7 million primarily due to business growth and marketing campaigns. Professional fees increased $318,000 to $1.5 million reflecting higher legal fees and the cost of various corporate initiatives.
"Our operating efficiency ratio of 56.56 percent was within our long-term efficiency goal of 56 to 58 percent," Tallent said. "The continued strength of our existing franchise, strong revenue growth and disciplined expense controls are more than offsetting the cost of reinvesting for the future through our significant de novo expansion efforts."
Also of note during the first quarter, United Community Banks was added to Standard and Poor's SmallCap 600 index. The index is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure they are investable and financially viable. "We are pleased to be included in this index as it reflects our commitment to deliver superior financial performance, including solid earnings for our shareholders," said Tallent.
"We are committed to our unique brand of customer service, solid credit quality, and building shareholder value by expanding our franchise while delivering consistent double-digit growth in earnings per share," Tallent said. "Our 2007 outlook is for earnings per share growth at the lower end of our long-term goal of 12 to 15 percent. We anticipate loan growth to be in the range of 6 to 10 percent for the balance of 2007 and our net interest margin at the current level of four percent. This outlook assumes stable economic and rate environments and continued strong credit quality."
Conference Call
United Community Banks will hold a conference call on Tuesday, April 17, 2007, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for 2007. The telephone number for the conference call is (866) 543-6408 and the pass code is "UCBI." The conference call will also be available by web cast within the Investor Relations section of the company's web site at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.2 billion and operates 26 community banks with 103 banking offices located throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company's web site at www.ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" on page 4 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Three Months Ended March 31, 2007
2007 2006
----------- ------------------------
(in thousands, except per share First Fourth Third
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 129,028 $ 123,463 $ 116,304
Interest expense 63,923 60,912 55,431
----------- ----------- -----------
Net interest revenue 65,105 62,551 60,873
Provision for loan losses 3,700 3,700 3,700
Fee revenue 14,382 13,215 12,146
----------- ----------- -----------
Total revenue 75,787 72,066 69,319
Operating expenses 44,841 42,521 41,441
----------- ----------- -----------
Income before taxes 30,946 29,545 27,878
Income taxes 11,601 11,111 10,465
----------- ----------- -----------
Net income $ 19,345 $ 18,434 $ 17,413
=========== =========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .45 $ .45 $ .43
Diluted earnings .44 .44 .42
Cash dividends declared .09 .08 .08
Book value 14.83 14.37 13.07
Tangible book value (2) 11.06 10.57 10.16
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.18% 17.49% 17.29%
Return on equity (1)(3) 12.48 13.26 13.22
Return on assets (3) 1.11 1.10 1.09
Net interest margin (3) 3.99 3.99 4.07
Efficiency ratio 56.56 55.93 56.46
Dividend payout ratio 20.00 17.78 18.60
Equity to assets 8.80 8.21 8.04
Tangible equity to assets (2) 6.66 6.46 6.35
ASSET QUALITY
Allowance for loan losses $ 68,804 $ 66,566 $ 60,901
Non-performing assets 14,290 13,654 9,347
Net charge-offs 1,462 1,930 1,307
Allowance for loan losses to loans 1.27% 1.24% 1.23%
Non-performing assets to total
assets .20 .19 .14
Net charge-offs to average loans (3) .11 .15 .11
AVERAGE BALANCES
Loans $ 5,402,860 $ 5,134,721 $ 4,865,886
Investment securities 1,153,208 1,059,125 1,029,981
Earning assets 6,599,035 6,225,943 5,942,710
Total assets 7,092,710 6,669,950 6,350,205
Deposits 5,764,426 5,517,696 5,085,168
Shareholders' equity 624,100 547,419 510,791
Common shares outstanding:
Basic 43,000 41,096 40,223
Diluted 43,912 42,311 41,460
AT PERIOD END
Loans $ 5,402,198 $ 5,376,538 $ 4,965,365
Investment securities 1,150,424 1,107,153 980,273
Earning assets 6,640,564 6,565,730 6,012,987
Total assets 7,186,602 7,101,249 6,455,290
Deposits 5,841,687 5,772,886 5,309,219
Shareholders' equity 638,456 616,767 526,734
Common shares outstanding 43,038 42,891 40,269
(1) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).
(2) Excludes effect of acquisition related intangibles and associated
amortization.
(3) Annualized.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Three Months Ended March 31, 2007
2006 First
------------------------ Quarter
(in thousands, except per share Second First 2007-2006
data; taxable equivalent) Quarter Quarter Change
----------- ----------- ---------
INCOME SUMMARY
Interest revenue $ 107,890 $ 99,038
Interest expense 49,407 43,065
----------- -----------
Net interest revenue 58,483 55,973 16%
Provision for loan losses 3,700 3,500
Fee revenue 11,976 11,758 22
----------- -----------
Total revenue 66,759 64,231 18
Operating expenses 39,645 38,463 17
----------- -----------
Income before taxes 27,114 25,768 20
Income taxes 10,185 9,729
----------- -----------
Net income $ 16,929 $ 16,039 21
=========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .42 $ .40 13
Diluted earnings .41 .39 13
Cash dividends declared .08 .08 13
Book value 12.34 12.09 23
Tangible book value (2) 9.50 9.25 20
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.68% 17.66%
Return on equity (1)(3) 13.41 13.25
Return on assets (3) 1.10 1.09
Net interest margin (3) 4.07 4.06
Efficiency ratio 56.27 56.79
Dividend payout ratio 19.05 20.00
Equity to assets 7.95 8.04
Tangible equity to assets (2) 6.22 6.24
ASSET QUALITY
Allowance for loan losses $ 58,508 $ 55,850
Non-performing assets 8,805 8,367
Net charge-offs 1,042 1,245
Allowance for loan losses to loans 1.22% 1.22%
Non-performing assets to total
assets .14 .14
Net charge-offs to average loans (3) .09 .11
AVERAGE BALANCES
Loans $ 4,690,196 $ 4,505,494 20
Investment Securities 1,039,707 1,038,683 11
Earning assets 5,758,697 5,574,712 18
Total assets 6,159,152 5,960,801 19
Deposits 4,842,389 4,613,810 25
Shareholders' equity 489,821 478,960 30
Common shares outstanding:
Basic 40,156 40,088
Diluted 41,328 41,190
AT PERIOD END
Loans $ 4,810,277 $ 4,584,155 18
Investment securities 974,524 983,846 17
Earning assets 5,862,614 5,633,381 18
Total assets 6,331,136 6,070,596 18
Deposits 4,976,650 4,748,438 23
Shareholders' equity 496,297 485,414 32
Common shares outstanding 40,179 40,119
(1) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss).
(2) Excludes effect of acquisition related intangibles and associated
amortization.
(3) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (unaudited)
For the Three Months Ended March 31,
Three Months Ended
March 31,
------------------
(in thousands, except per share data) 2007 2006
--------- --------
Interest revenue:
Loans, including fees $ 114,073 $ 86,606
Investment securities:
Taxable 13,968 11,318
Tax exempt 447 514
Federal funds sold and deposits in banks 58 158
--------- --------
Total interest revenue 128,546 98,596
--------- --------
Interest expense:
Deposits:
NOW 10,627 5,987
Money market 2,540 1,200
Savings 309 228
Time 41,625 25,386
--------- --------
Total deposit interest expense 55,101 32,801
Federal funds purchased, repurchase agreements, &
other short-term borrowings 1,817 1,482
Federal Home Loan Bank advances 4,801 6,629
Long-term debt 2,204 2,153
--------- --------
Total interest expense 63,923 43,065
--------- --------
Net interest revenue 64,623 55,531
Provision for loan losses 3,700 3,500
--------- --------
Net interest revenue after provision for loan
losses 60,923 52,031
--------- --------
Fee revenue:
Service charges and fees 7,253 6,353
Mortgage loan and other related fees 2,223 1,513
Consulting fees 1,747 1,584
Brokerage fees 944 850
Securities gains (losses), net 207 (3)
Other 2,008 1,461
--------- --------
Total fee revenue 14,382 11,758
--------- --------
Total revenue 75,305 63,789
--------- --------
Operating expenses:
Salaries and employee benefits 28,317 23,884
Communications and equipment 3,812 3,376
Occupancy 3,191 2,932
Advertising and public relations 2,016 1,888
Postage, printing and supplies 1,660 1,516
Professional fees 1,479 1,161
Amortization of intangibles 564 503
Other 3,802 3,203
--------- --------
Total operating expenses 44,841 38,463
--------- --------
Income before income taxes 30,464 25,326
Income taxes 11,119 9,287
--------- --------
Net income $ 19,345 $ 16,039
========= ========
Net income available to common shareholders $ 19,341 $ 16,034
========= ========
Earnings per common share:
Basic $ .45 $ .40
Diluted .44 .39
Dividends per common share .09 .08
Weighted average common shares outstanding:
Basic 43,000 40,088
Diluted 43,912 41,190
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
For the period ended
(in thousands, except share and per
share data) March 31, December 31, March 31,
2007 2006 2006
----------- ----------- -----------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 159,543 $ 158,348 $ 150,378
Interest-bearing deposits in
banks 22,644 12,936 12,259
----------- ----------- -----------
Cash and cash equivalents 182,187 171,284 162,637
Securities available for sale 1,150,424 1,107,153 983,846
Mortgage loans held for sale 31,633 35,325 18,455
Loans, net of unearned income 5,402,198 5,376,538 4,584,155
Less allowance for loan
losses 68,804 66,566 55,850
----------- ----------- -----------
Loans, net 5,333,394 5,309,972 4,528,305
Premises and equipment, net 150,332 139,716 120,021
Accrued interest receivable 60,677 58,291 41,895
Goodwill and other intangible
assets 166,073 167,058 118,149
Other assets 111,882 112,450 97,288
----------- ----------- -----------
Total assets $ 7,186,602 $ 7,101,249 $ 6,070,596
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $ 675,969 $ 659,892 $ 653,624
NOW 1,406,287 1,307,654 1,106,106
Money market 277,184 255,862 171,328
Savings 176,891 175,631 176,205
Time:
Less than $100,000 1,619,865 1,650,906 1,308,698
Greater than $100,000 1,366,360 1,397,245 1,029,464
Brokered 319,131 325,696 303,013
----------- ----------- -----------
Total deposits 5,841,687 5,772,886 4,748,438
Federal funds purchased,
repurchase agreements, and
other short-term borrowings 77,367 65,884 167,369
Federal Home Loan Bank advances 464,072 489,084 510,602
Long-term debt 113,151 113,151 111,869
Accrued expenses and other
liabilities 51,869 43,477 46,904
----------- ----------- -----------
Total liabilities 6,548,146 6,484,482 5,585,182
----------- ----------- -----------
Shareholders' equity:
Preferred stock, $1 par value;
$10 stated value; 10,000,000
shares authorized; 32,200,
32,200 and 32,200 shares issued
and outstanding 322 322 322
Common stock, $1 par value;
100,000,000 shares authorized;
43,037,840, 42,890,863 and
40,119,288 shares issued and
outstanding 43,038 42,891 40,119
Common stock issuable; 35,154,
29,821 and 16,549 shares 1,043 862 451
Capital surplus 273,575 270,383 195,382
Retained earnings 321,721 306,261 263,384
Accumulated other comprehensive
loss (1,243) (3,952) (14,244)
----------- ----------- -----------
Total shareholders' equity 638,456 616,767 485,414
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 7,186,602 $ 7,101,249 $ 6,070,596
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2007
-------------------------------------
(dollars in thousands, taxable
equivalent) Average Avg.
Balance Interest Rate
----------- ------------ -------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,402,860 $ 113,868 8.55%
Taxable securities (3) 1,109,847 13,968 5.03
Tax-exempt securities (1) (3) 43,361 735 6.78
Federal funds sold and other
interest-earning assets 42,967 457 4.26
----------- ------------
Total interest-earning assets 6,599,035 129,028 7.92
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (68,187)
Cash and due from banks 120,637
Premises and equipment 146,832
Other assets (3) 294,393
-----------
Total assets $ 7,092,710
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 1,322,818 $ 10,627 3.26
Money Market accounts 261,753 2,540 3.94
Savings deposits 175,275 309 .71
Time deposits less than $100,000 1,641,507 19,796 4.89
Time deposits greater than $100,000 1,385,401 17,916 5.24
Brokered deposits 334,753 3,913 4.74
----------- ------------
Total interest-bearing
deposits 5,121,507 55,101 4.36
----------- ------------
Federal funds purchased & other
borrowings 139,256 1,817 5.29
Federal Home Loan Bank advances 395,746 4,801 4.92
Long-term debt 113,234 2,204 7.89
----------- ------------
Total borrowed funds 648,236 8,822 5.52
----------- ------------
Total interest-bearing
liabilities 5,769,743 63,923 4.49
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 642,919
Other liabilities 55,948
-----------
Total liabilities 6,468,610
Shareholders' equity 624,100
-----------
Total liabilities
and shareholders' equity $ 7,092,710
===========
Net interest revenue $ 65,105
============
Net interest-rate spread 3.43%
=========
Net interest margin (4) 3.99%
=========
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans.
The rate used was 39%, reflecting the statutory federal income tax
rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized losses of $10.0 million and $14.2 million in 2007 and
2006, respectively, are included in other assets for purposes of
this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue
divided by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2006
----------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ --------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 4,505,494 $ 86,495 7.79%
Taxable securities (3) 989,683 11,318 4.57
Tax-exempt securities (1) (3) 49,000 846 6.90
Federal funds sold and other
interest-earning assets 30,535 379 4.96
----------- ------------
Total interest-earning assets 5,574,712 99,038 7.19
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (54,825)
Cash and due from banks 122,486
Premises and equipment 115,590
Other assets (3) 202,838
-----------
Total assets $ 5,960,801
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 1,082,342 $ 5,987 2.24
Money Market accounts 163,404 1,200 2.98
Savings deposits 175,796 228 .53
Time deposits less than $100,000 1,270,078 12,035 3.84
Time deposits greater than
$100,000 979,665 10,409 4.31
Brokered deposits 315,090 2,942 3.79
----------- ------------
Total interest-bearing
deposits 3,986,375 32,801 3.34
----------- ------------
Federal funds purchased & other
borrowings 128,602 1,482 4.67
Federal Home Loan Bank advances 586,722 6,629 4.58
Long-term debt 111,869 2,153 7.81
----------- ------------
Total borrowed funds 827,193 10,264 5.03
----------- ------------
Total interest-bearing
liabilities 4,813,568 43,065 3.63
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 627,436
Other liabilities 40,837
-----------
Total liabilities 5,481,841
Shareholders' equity 478,960
-----------
Total liabilities
and shareholders' equity $ 5,960,801
===========
Net interest revenue $ 55,973
============
Net interest-rate spread 3.56%
=========
Net interest margin (4) 4.06%
=========
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rate used was 39%, reflecting the statutory federal income tax rate
and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized losses of $10.0 million and $14.2 million in 2007 and 2006,
respectively, are included in other assets for purposes of
this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
For more information:
Rex S. SchuetteChief Financial Officer
(706) 781-2266
Contact via http://www.marketwire.com/mw/emailprcntct?id=2098FE0F9894DD5F
SOURCE: United Community Banks, Inc.