United Community Banks, Inc. Reports Net Operating Loss of $142.5 Million for First Quarter 2011
-- Completed strategically significant$380 million private equity offering -- Executed major elements of our asset disposition plan to de-risk balance sheet: -- completed$267 million bulk loan sale onApril 18 -- sold$77.5 million in loans and foreclosed properties -- aggressively wrote down foreclosed properties to 30 percent of unpaid principal balance -- Nonperforming assets down 57 percent from prior quarter and at lowest level in three years -- Allowance for loan losses remains strong at 3.17 percent of loans -- Core transaction deposits up 13 percent on an annualized basis
"The asset disposition plan includes bulk sales of classified loans, as
well as aggressive write-downs of foreclosed properties to levels
significantly less than the appraised values in order to accelerate their
sales," stated
The accelerated disposition of classified loans through bulk sales and
transfers to foreclosed properties represented
Additionally, United sold
"The first quarter provision for loan losses and net charge-offs --
Execution of the asset disposition plan also included the sale of
Total non-performing assets were
"We made tremendous progress during the first quarter toward our goal of
returning to profitability," stated
Total loans were
Taxable equivalent net interest revenue of
Tallent credited United bankers for their focus on servicing customers and
growing the franchise while management worked out the capital transaction
and asset disposition plan. "We grew core transaction deposits in the
first quarter by
Operating fee revenue was
First quarter operating expenses were
Foreclosed property costs for the first quarter of 2011 were
The effective tax rate for the first quarter of 2011 was 40 percent, equal to the first quarter of 2010. The effective tax rate for the balance of 2011 is expected to return to a normal range of 35 to 36 percent; however, this rate could vary significantly depending on the level of earnings.
As of
"The first quarter of
Conference Call
About
Headquartered in
Safe Harbor
This news release contains forward-looking statements, as defined by
Federal Securities Laws, including statements about financial United's
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 anticipated in such statements. Any such statements
are based on current expectations and involve a number of risks and
uncertainties. For a discussion of some factors that may cause such
forward-looking statements to differ materially from actual results, please
refer to the section entitled "Risk Factors" of
UNITED COMMUNITY BANKS, INC. Financial Highlights Selected Financial Information 2011 2010 --------- ------------------------------------------ (in thousands, except per share data; taxable First Fourth Third Second First equivalent) Quarter Quarter Quarter Quarter Quarter --------- -------- --------- -------- -------- INCOME SUMMARY Interest revenue $ 75,965 $ 81,215 $ 84,360 $ 87,699 $ 89,849 Interest expense 19,573 21,083 24,346 26,072 28,570 --------- -------- --------- -------- -------- Net interest revenue 56,392 60,132 60,014 61,627 61,279 Operating provision for loan losses (1) 190,000 47,750 50,500 61,500 75,000 Operating fee revenue (2) 11,838 12,442 12,861 11,579 11,666 --------- -------- --------- -------- -------- Total operating revenue (1)(2) (121,770) 24,824 22,375 11,706 (2,055) Operating expenses (3) 115,271 64,918 64,906 58,308 54,820 Loss on sale of nonperforming assets - - - 45,349 - --------- -------- --------- -------- -------- Operating loss from continuing operations before taxes (237,041) (40,094) (42,531) (91,951) (56,875) Operating income tax benefit (94,555) (16,520) (16,706) (32,419) (22,417) --------- -------- --------- -------- -------- Net operating loss from continuing operations (1)(2)(3) (142,486) (23,574) (25,825) (59,532) (34,458) Noncash goodwill impairment charges - - (210,590) - - Partial reversal of fraud loss provision, net of tax expense - 7,179 - - - Loss from discontinued operations - - - - (101) Gain from sale of subsidiary, net of income taxes and selling costs - - - - 1,266 --------- -------- --------- -------- -------- Net loss (142,486) (16,395) (236,415) (59,532) (33,293) Preferred dividends and discount accretion 2,778 2,586 2,581 2,577 2,572 --------- -------- --------- -------- -------- Net loss available to common shareholders $(145,264) $(18,981) $(238,996) $(62,109) $(35,865) ========= ======== ========= ======== ======== PERFORMANCE MEASURES Per common share: Diluted operating loss from continuing operations (1)(2)(3) $ (1.57) $ (.28) $ (.30) $ (.66) $ (.39) Diluted loss from continuing operations (1.57) (.20) (2.52) (.66) (.39) Diluted loss (1.57) (.20) (2.52) (.66) (.38) Book value 2.96 4.84 5.14 7.71 7.95 Tangible book value (5) 2.89 4.76 5.05 5.39 5.62 Key performance ratios: Return on equity (4)(6) (147.11)% (17.16)% (148.04)% (35.89)% (20.10)% Return on assets (6) (7.61) (.89) (12.47) (3.10) (1.70) Net interest margin (6) 3.30 3.58 3.57 3.60 3.49 Operating efficiency ratio from continuing operations (2)(3) 169.08 89.45 89.38 141.60 75.22 Equity to assets 8.82 8.85 11.37 11.84 11.90 Tangible equity to assets (5) 8.73 8.75 9.19 9.26 9.39 Tangible common equity to assets (5) 5.51 6.35 6.78 6.91 7.13 Tangible common equity to risk-weighted assets (5) 6.40 9.05 9.60 9.97 10.03 ASSET QUALITY * Non-performing loans $ 83,769 $179,094 $ 217,766 $224,335 $280,802 Foreclosed properties 54,378 142,208 129,964 123,910 136,275 --------- -------- --------- -------- -------- Total non- performing assets (NPAs) 138,147 321,302 347,730 348,245 417,077 Allowance for loan losses 133,121 174,695 174,613 174,111 173,934 Operating net charge-offs (1) 231,574 47,668 49,998 61,323 56,668 Allowance for loan losses to loans 3.17% 3.79% 3.67% 3.57% 3.48% Operating net charge-offs to average loans (1)(6) 20.71 4.03 4.12 4.98 4.51 NPAs to loans and foreclosed properties 3.25 6.77 7.11 6.97 8.13 NPAs to total assets 1.73 4.32 4.96 4.55 5.32 AVERAGE BALANCES ($ in millions) Loans $ 4,599 $ 4,768 $ 4,896 $ 5,011 $ 5,173 Investment securities 1,625 1,354 1,411 1,532 1,518 Earning assets 6,902 6,680 6,676 6,854 7,085 Total assets 7,595 7,338 7,522 7,704 7,946 Deposits 6,560 6,294 6,257 6,375 6,570 Shareholders' equity 670 649 855 912 945 Common shares - basic (thousands) 92,330 94,918 94,679 94,524 94,390 Common shares - diluted (thousands) 92,330 94,918 94,679 94,524 94,390 AT PERIOD END ($ in millions) Loans * $ 4,194 $ 4,604 $ 4,760 $ 4,873 $ 4,992 Investment securities 1,884 1,490 1,310 1,488 1,527 Total assets 7,974 7,443 7,013 7,652 7,837 Deposits 6,598 6,469 5,999 6,330 6,488 Shareholders' equity 850 636 662 904 926 Common shares outstanding (thousands) 104,516 94,685 94,433 94,281 94,176 (1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of$11.8 million , net of tax expense of$4.6 million in the fourth quarter of 2010. Operating charge-offs also exclude the$11.8 million related partial recovery of the previously charged off amount. (2) Excludes revenue generated by discontinued operations in the first quarter of 2010. (3) Excludes the goodwill impairment charge of$211 million in the third quarter of 2010 and expenses relating to discontinued operations in the first quarter of 2010. (4) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Annualized. * Excludes loans and foreclosed properties covered by loss sharing agreements with theFDIC .UNITED COMMUNITY BANKS, INC. Financial Highlights Selected Financial Information 2011 2010 First ---------- ---------- Quarter (in thousands, except per share First First 2011-2010 data; taxable equivalent) Quarter Quarter Change ---------- ---------- ---------- INCOME SUMMARY Interest revenue $ 75,965 $ 89,849 Interest expense 19,573 28,570 ---------- ---------- Net interest revenue 56,392 61,279 (8)% Operating provision for loan losses (1) 190,000 75,000 Operating fee revenue (2) 11,838 11,666 1 ---------- ---------- Total operating revenue (1)(2) (121,770) (2,055) Operating expenses (3) 115,271 54,820 110 Loss on sale of nonperforming assets - - ---------- ---------- Operating loss from continuing operations before taxes (237,041) (56,875) (317) Operating income tax benefit (94,555) (22,417) ---------- ---------- Net operating loss from continuing operations (1)(2)(3) (142,486) (34,458) (314) Noncash goodwill impairment charges - - Partial reversal of fraud loss provision, net of tax expense - - Loss from discontinued operations - (101) Gain from sale of subsidiary, net of income taxes and selling costs - 1,266 ---------- ---------- Net loss (142,486) (33,293) (328) Preferred dividends and discount accretion 2,778 2,572 ---------- ---------- Net loss available to common shareholders $ (145,264) $ (35,865) ========== ========== PERFORMANCE MEASURES Per common share: Diluted operating loss from continuing operations (1)(2)(3) $ (1.57) $ (.39) (303) Diluted loss from continuing operations (1.57) (.39) (303) Diluted loss (1.57) (.38) (313) Book value 2.96 7.95 (63) Tangible book value (5) 2.89 5.62 (49) Key performance ratios: Return on equity (4)(6) (147.11)% (20.10)% Return on assets (6) (7.61) (1.70) Net interest margin (6) 3.30 3.49 Operating efficiency ratio from continuing operations (2)(3) 169.08 75.22 Equity to assets 8.82 11.90 Tangible equity to assets (5) 8.73 9.39 Tangible common equity to assets (5) 5.51 7.13 Tangible common equity to risk-weighted assets (5) 6.40 10.03 ASSET QUALITY * Non-performing loans $ 83,769 $ 280,802 Foreclosed properties 54,378 136,275 ---------- ---------- Total non-performing assets (NPAs) 138,147 417,077 Allowance for loan losses 133,121 173,934 Operating net charge-offs (1) 231,574 56,668 Allowance for loan losses to loans 3.17% 3.48% Operating net charge-offs to average loans (1)(6) 20.71 4.51 NPAs to loans and foreclosed properties 3.25 8.13 NPAs to total assets 1.73 5.32 AVERAGE BALANCES ($ in millions) Loans $ 4,599 $ 5,173 (11) Investment securities 1,625 1,518 7 Earning assets 6,902 7,085 (3) Total assets 7,595 7,946 (4) Deposits 6,560 6,570 - Shareholders' equity 670 945 (29) Common shares - basic (thousands) 92,330 94,390 Common shares - diluted (thousands) 92,330 94,390 AT PERIOD END ($ in millions) Loans * $ 4,194 $ 4,992 (16) Investment securities 1,884 1,527 23 Total assets 7,974 7,837 2 Deposits 6,598 6,488 2 Shareholders' equity 850 926 (8) Common shares outstanding (thousands) 104,516 94,176 (1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of$11.8 million , net of tax expense of$4.6 million in the fourth quarter of 2010. Operating charge-offs also exclude the$11.8 million related partial recovery of the previously charged off amount. (2) Excludes revenue generated by discontinued operations in the first quarter of 2010. (3) Excludes the goodwill impairment charge of$211 million in the third quarter of 2010 and expenses relating to discontinued operations in the first quarter of 2010. (4) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Annualized. * Excludes loans and foreclosed properties covered by loss sharing agreements with theFDIC .UNITED COMMUNITY BANKS, INC. Operating Earnings to GAAP Earnings Reconciliation Selected Financial Information 2011 2010 ---------- ------------------------------------------- (in thousands, except per share data; taxable First Fourth Third Second First equivalent) Quarter Quarter Quarter Quarter Quarter ---------- --------- ---------- --------- --------- Interest revenue reconciliation Interest revenue - taxable equivalent $ 75,965 $ 81,215 $ 84,360 $ 87,699 $ 89,849 Taxable equivalent adjustment (435) (497) (511) (500) (493) ---------- --------- ---------- --------- --------- Interest revenue (GAAP) $ 75,530 $ 80,718 $ 83,849 $ 87,199 $ 89,356 ========== ========= ========== ========= ========= Net interest revenue reconciliation Net interest revenue - taxable equivalent $ 56,392 $ 60,132 $ 60,014 $ 61,627 $ 61,279 Taxable equivalent adjustment (435) (497) (511) (500) (493) ---------- --------- ---------- --------- --------- Net interest revenue (GAAP) $ 55,957 $ 59,635 $ 59,503 $ 61,127 $ 60,786 ========== ========= ========== ========= ========= Provision for loan losses reconciliation Operating provision for loan losses $ 190,000 $ 47,750 $ 50,500 $ 61,500 $ 75,000 Partial reversal of special fraud-related provision for loan loss - (11,750) - - - ---------- --------- ---------- --------- --------- Provision for loan losses (GAAP) $ 190,000 $ 36,000 $ 50,500 $ 61,500 $ 75,000 ========== ========= ========== ========= ========= Total revenue reconciliation Total operating revenue $ (121,770) $ 24,824 $ 22,375 $ 11,706 $ (2,055) Taxable equivalent adjustment (435) (497) (511) (500) (493) Partial reversal of special fraud-related provision for loan loss - 11,750 - - - ---------- --------- ---------- --------- --------- Total revenue (GAAP) $ (122,205) $ 36,077 $ 21,864 $ 11,206 $ (2,548) ========== ========= ========== ========= ========= Expense reconciliation Operating expense $ 115,271 $ 64,918 $ 64,906 $ 103,657 $ 54,820 Noncash goodwill impairment charge - - 210,590 - - ---------- --------- ---------- --------- --------- Operating expense (GAAP) $ 115,271 $ 64,918 $ 275,496 $ 103,657 $ 54,820 ========== ========= ========== ========= ========= Loss from continuing operations before taxes reconciliation Operating loss from continuing operations before taxes $ (237,041) $ (40,094) $ (42,531) $ (91,951) $ (56,875) Taxable equivalent adjustment (435) (497) (511) (500) (493) Noncash goodwill impairment charge - - (210,590) - - Partial reversal of special fraud-related provision for loan loss - 11,750 - - - ---------- --------- ---------- --------- --------- Loss from continuing operations before taxes (GAAP) $ (237,476) $ (28,841) $ (253,632) $ (92,451) $ (57,368) ========== ========= ========== ========= ========= Income tax benefit reconciliation Operating income tax benefit $ (94,555) $ (16,520) $ (16,706) $ (32,419) $ (22,417) Taxable equivalent adjustment (435) (497) (511) (500) (493) Partial reversal of special fraud-related provision for loan loss - 4,571 - - - ---------- --------- ---------- --------- --------- Income tax benefit (GAAP) $ (94,990) $ (12,446) $ (17,217) $ (32,919) $ (22,910) ========== ========= ========== ========= ========= Diluted loss from continuing operations per common share reconciliation Diluted operating loss from continuing operations per common share $ (1.57) $ (.28) $ (.30) $ (.66) $ (.39) Noncash goodwill impairment charge - - (2.22) - - Partial reversal of special fraud-related provision for loan loss - .08 - - - ---------- --------- ---------- --------- --------- Diluted loss from continuing operations per common share (GAAP) $ (1.57) $ (.20) $ (2.52) $ (.66) $ (.39) ========== ========= ========== ========= ========= Book value per common share reconciliation Tangible book value per common share $ 2.89 $ 4.76 $ 5.05 $ 5.39 $ 5.62 Effect of goodwill and other intangibles .07 .08 .09 2.32 2.33 ---------- --------- ---------- --------- --------- Book value per common share (GAAP) $ 2.96 $ 4.84 $ 5.14 $ 7.71 $ 7.95 ========== ========= ========== ========= ========= Efficiency ratio from continuing operations reconciliation Operating efficiency ratio from continuing operations 169.08% 89.45% 89.38% 141.60% 75.22% Noncash goodwill impairment charge - - 290.00 - - ---------- --------- ---------- --------- --------- Efficiency ratio from continuing operations (GAAP) 169.08% 89.45% 379.38% 141.60% 75.22% ========== ========= ========== ========= ========= Average equity to assets reconciliation Tangible common equity to assets 5.51% 6.35% 6.78% 6.91% 7.13% Effect of preferred equity 3.22 2.40 2.41 2.35 2.26 ---------- --------- ---------- --------- --------- Tangible equity to assets 8.73 8.75 9.19 9.26 9.39 Effect of goodwill and other intangibles .09 .10 2.18 2.58 2.51 ---------- --------- ---------- --------- --------- Equity to assets (GAAP) 8.82% 8.85% 11.37% 11.84% 11.90% ========== ========= ========== ========= ========= Actual tangible common equity to risk-weighted assets reconciliation Tangible common equity to risk-weighted assets 6.40% 9.05% 9.60% 9.97% 10.03% Effect of other comprehensive income (.58) (.62) (.81) (.87) (.85) Effect of deferred tax limitation (5.10) (3.34) (2.94) (2.47) (1.75) Effect of trust preferred 1.12 1.06 1.06 1.03 1.00 Effect of preferred equity 5.97 3.52 3.51 3.41 3.29 ---------- --------- ---------- --------- --------- Tier I capital ratio (Regulatory) 7.81% 9.67% 10.42% 11.07% 11.72% ========== ========= ========== ========= ========= Net charge-offs reconciliation Operating net charge-offs $ 231,574 $ 47,668 $ 49,998 $ 61,323 $ 56,668 Subsequent partial recovery of fraud-related charge-off - (11,750) - - - ---------- --------- ---------- --------- --------- Net charge-offs (GAAP) $ 231,574 $ 35,918 $ 49,998 $ 61,323 $ 56,668 ========== ========= ========== ========= ========= Net charge-offs to average loans reconciliation Operating net charge-offs to average loans 20.71% 4.03% 4.12% 4.98% 4.51% Subsequent partial recovery of fraud-related charge-off - (1.00) - - - ---------- --------- ---------- --------- --------- Net charge-offs to average loans (GAAP) 20.71% 3.03% 4.12% 4.98% 4.51% ========== ========= ========== ========= =========UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) 2011 2010 ------- ------------------------------- First Fourth Third Second First (in millions) Quarter Quarter Quarter Quarter Quarter ------- ------- ------- ------- ------- LOANS BY CATEGORY Commercial (sec. by RE) $ 1,692 $ 1,761 $ 1,781 $ 1,780 $ 1,765 Commercial construction 213 297 310 342 357 Commercial & industrial 431 441 456 441 381 ------- ------- ------- ------- ------- Total commercial 2,336 2,499 2,547 2,563 2,503 Residential construction 550 695 764 820 960 Residential mortgage 1,187 1,279 1,316 1,356 1,390 Consumer / installment 121 131 133 134 139 ------- ------- ------- ------- ------- Total loans $ 4,194 $ 4,604 $ 4,760 $ 4,873 $ 4,992 ======= ======= ======= ======= ======= LOANS BY MARKET Atlanta MSA $ 1,179 $ 1,310 $ 1,365 $ 1,373 $ 1,404 Gainesville MSA 282 312 316 343 372 North Georgia 1,531 1,689 1,755 1,808 1,814 Western North Carolina 640 702 719 738 756 Coastal Georgia 312 335 345 356 388 East Tennessee 250 256 260 255 258 ------- ------- ------- ------- ------- Total loans $ 4,194 $ 4,604 $ 4,760 $ 4,873 $ 4,992 ======= ======= ======= ======= ======= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 116 $ 174 $ 190 $ 214 $ 290 Land loans 69 99 104 110 124 Lot loans 228 275 303 311 321 ------- ------- ------- ------- ------- Total 413 548 597 635 735 ------- ------- ------- ------- ------- House loans Spec 88 97 109 125 153 Sold 49 50 58 60 72 ------- ------- ------- ------- ------- Total 137 147 167 185 225 ------- ------- ------- ------- ------- Total residential construction $ 550 $ 695 $ 764 $ 820 $ 960 ======= ======= ======= ======= ======= RESIDENTIAL CONSTRUCTION - ATLANTA MSA Dirt loans Acquisition & development $ 22 $ 30 $ 34 $ 40 $ 66 Land loans 19 23 27 32 43 Lot loans 24 32 45 39 47 ------- ------- ------- ------- ------- Total 65 85 106 111 156 ------- ------- ------- ------- ------- House loans Spec 34 38 42 48 58 Sold 11 10 11 10 14 ------- ------- ------- ------- ------- Total 45 48 53 58 72 ------- ------- ------- ------- ------- Total residential construction $ 110 $ 133 $ 159 $ 169 $ 228 ======= ======= ======= ======= ======= (1) Excludes total loans of$63.3 million ,$68.2 million ,$75.2 million ,$80.8 million and$79.5 million as ofMarch 31, 2011 ,December 31, 2010 ,September 30, 2010 ,June 30, 2010 andMarch 31, 2010 , respectively, that are covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank .UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) 2011 2010 ------- --------------- Year Linked over First Fourth First Quarter Year (in millions) Quarter Quarter Quarter Change Change ------- ------- ------- ------ ------ LOANS BY CATEGORY Commercial (sec. by RE) $ 1,692 $ 1,761 $ 1,765 $ (69) $ (73) Commercial construction 213 297 357 (84) (144) Commercial & industrial 431 441 381 (10) 50 ------- ------- ------- Total commercial 2,336 2,499 2,503 (163) (167) Residential construction 550 695 960 (145) (410) Residential mortgage 1,187 1,279 1,390 (92) (203) Consumer / installment 121 131 139 (10) (18) ------- ------- ------- Total loans $ 4,194 $ 4,604 $ 4,992 (410) (798) ======= ======= ======= LOANS BY MARKET Atlanta MSA $ 1,179 $ 1,310 $ 1,404 (131) (225) Gainesville MSA 282 312 372 (30) (90) North Georgia 1,531 1,689 1,814 (158) (283) Western North Carolina 640 702 756 (62) (116) Coastal Georgia 312 335 388 (23) (76) East Tennessee 250 256 258 (6) (8) ------- ------- ------- Total loans $ 4,194 $ 4,604 $ 4,992 (410) (798) ======= ======= ======= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 116 $ 174 $ 290 (58) (174) Land loans 69 99 124 (30) (55) Lot loans 228 275 321 (47) (93) ------- ------- ------- Total 413 548 735 (135) (322) ------- ------- ------- House loans Spec 88 97 153 (9) (65) Sold 49 50 72 (1) (23) ------- ------- ------- Total 137 147 225 (10) (88) ------- ------- ------- Total residential construction $ 550 $ 695 $ 960 (145) (410) ======= ======= ======= RESIDENTIAL CONSTRUCTION - ATLANTA MSA Dirt loans Acquisition & development $ 22 $ 30 $ 66 (8) (44) Land loans 19 23 43 (4) (24) Lot loans 24 32 47 (8) (23) ------- ------- ------- Total 65 85 156 (20) (91) ------- ------- ------- House loans Spec 34 38 58 (4) (24) Sold 11 10 14 1 (3) ------- ------- ------- Total 45 48 72 (3) (27) ------- ------- ------- Total residential construction $ 110 $ 133 $ 228 (23) (118) ======= ======= ======= (1) Excludes total loans of$63.3 million ,$68.2 million ,$75.2 million ,$80.8 million and$79.5 million as ofMarch 31, 2011 ,December 31, 2010 ,September 30, 2010 ,June 30, 2010 andMarch 31, 2010 , respectively, that are covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank .UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) First Quarter 2011 (2) ---------------------------------------- Non-performing Foreclosed Total (in thousands) Loans Properties NPAs ------------ ------------ ------------ NPAs BY CATEGORY Commercial (sec. by RE) $ 20,648 $ 7,886 $ 28,534 Commercial construction 3,701 11,568 15,269 Commercial & industrial 2,198 - 2,198 ------------ ------------ ------------ Total commercial 26,547 19,454 46,001 Residential construction 32,038 25,807 57,845 Residential mortgage 23,711 9,117 32,828 Consumer / installment 1,473 - 1,473 ------------ ------------ ------------ Total NPAs $ 83,769 $ 54,378 $ 138,147 ============ ============ ============ Balance as a % of Unpaid Principal 57.3% 30.3% 42.4% NPAs BY MARKET Atlanta MSA $ 21,501 $ 16,913 $ 38,414 Gainesville MSA 4,332 2,157 6,489 North Georgia 30,214 23,094 53,308 Western North Carolina 18,849 7,802 26,651 Coastal Georgia 5,847 3,781 9,628 East Tennessee 3,026 631 3,657 ------------ ------------ ------------ Total NPAs $ 83,769 $ 54,378 $ 138,147 ============ ============ ============ NPA ACTIVITY Beginning Balance $ 179,094 $ 142,208 $ 321,302 Loans placed on non-accrual 54,730 - 54,730 Payments received (3,550) - (3,550) Loan charge-offs (43,969) - (43,969) Foreclosures (17,052) 17,052 - Capitalized costs - 270 270 Note / property sales (11,400) (44,547) (55,947) Loans held for sale (74,084) - (74,084) Write downs - (48,585) (48,585) Net losses on sales - (12,020) (12,020) ------------ ------------ ------------ Ending Balance $ 83,769 $ 54,378 $ 138,147 ============ ============ ============ (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) The NPA activity shown for the first quarter of 2011 is presented with all activity related to loans transferred to the loans held for sale classification on one line as if those loans were transferred to held for sale at the beginning of the period. (3) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first quarter of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first quarter of 2011. (4)North Carolina residential construction net charge-offs for the fourth quarter of 2010 exclude a$11.8 million partial recovery of a 2007 fraud-related charge-off. (5) Annualized.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) Fourth Quarter 2010 ---------------------------------------- Non-performing Foreclosed Total (in thousands) Loans Properties NPAs ------------ ------------ ------------ NPAs BY CATEGORY Commercial (sec. by RE) $ 44,927 $ 23,659 $ 68,586 Commercial construction 21,374 17,808 39,182 Commercial & industrial 5,611 - 5,611 ------------ ------------ ------------ Total commercial 71,912 41,467 113,379 Residential construction 54,505 78,231 132,736 Residential mortgage 51,083 22,510 73,593 Consumer / installment 1,594 - 1,594 ------------ ------------ ------------ Total NPAs $ 179,094 $ 142,208 $ 321,302 ============ ============ ============ Balance as a % of Unpaid Principal 67.2% 64.4% 65.9% NPAs BY MARKET Atlanta MSA $ 48,289 $ 41,154 $ 89,443 Gainesville MSA 5,171 9,273 14,444 North Georgia 83,551 66,211 149,762 Western North Carolina 25,832 11,553 37,385 Coastal Georgia 11,145 11,901 23,046 East Tennessee 5,106 2,116 7,222 ------------ ------------ ------------ Total NPAs $ 179,094 $ 142,208 $ 321,302 ============ ============ ============ NPA ACTIVITY Beginning Balance $ 217,766 $ 129,964 $ 347,730 Loans placed on non-accrual 81,023 - 81,023 Payments received (7,250) - (7,250) Loan charge-offs (47,913) - (47,913) Foreclosures (61,432) 61,432 - Capitalized costs - 170 170 Note / property sales (3,100) (33,509) (36,609) Loans held for sale - - - Write downs - (8,031) (8,031) Net losses on sales - (7,818) (7,818) ------------ ------------ ------------ Ending Balance $ 179,094 $ 142,208 $ 321,302 ============ ============ ============ (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) The NPA activity shown for the first quarter of 2011 is presented with all activity related to loans transferred to the loans held for sale classification on one line as if those loans were transferred to held for sale at the beginning of the period. (3) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first quarter of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first quarter of 2011. (4)North Carolina residential construction net charge-offs for the fourth quarter of 2010 exclude a$11.8 million partial recovery of a 2007 fraud-related charge-off. (5) Annualized.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) Third Quarter 2010 ---------------------------------------- Non-performing Foreclosed Total (in thousands) Loans Properties NPAs ------------ ------------ ------------ NPAs BY CATEGORY Commercial (sec. by RE) $ 53,646 $ 14,838 $ 68,484 Commercial construction 17,279 15,125 32,404 Commercial & industrial 7,670 - 7,670 ------------ ------------ ------------ Total commercial 78,595 29,963 108,558 Residential construction 79,321 73,206 152,527 Residential mortgage 58,107 26,795 84,902 Consumer / installment 1,743 - 1,743 ------------ ------------ ------------ Total NPAs $ 217,766 $ 129,964 $ 347,730 ============ ============ ============ Balance as a % of Unpaid Principal 70.0% 65.9% 68.4% NPAs BY MARKET Atlanta MSA $ 65,304 $ 32,785 $ 98,089 Gainesville MSA 11,905 5,685 17,590 North Georgia 92,295 67,439 159,734 Western North Carolina 31,545 11,559 43,104 Coastal Georgia 10,611 10,951 21,562 East Tennessee 6,106 1,545 7,651 ------------ ------------ ------------ Total NPAs $ 217,766 $ 129,964 $ 347,730 ============ ============ ============ NPA ACTIVITY Beginning Balance $ 224,335 $ 123,910 $ 348,245 Loans placed on non-accrual 119,783 - 119,783 Payments received (11,469) - (11,469) Loan charge-offs (52,647) - (52,647) Foreclosures (59,844) 59,844 - Capitalized costs - 601 601 Note / property sales (2,392) (40,203) (42,595) Loans held for sale - - - Write downs - (7,051) (7,051) Net losses on sales - (7,137) (7,137) ------------ ------------ ------------ Ending Balance $ 217,766 $ 129,964 $ 347,730 ============ ============ ============ (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) The NPA activity shown for the first quarter of 2011 is presented with all activity related to loans transferred to the loans held for sale classification on one line as if those loans were transferred to held for sale at the beginning of the period. (3) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first quarter of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first quarter of 2011. (4)North Carolina residential construction net charge-offs for the fourth quarter of 2010 exclude a$11.8 million partial recovery of a 2007 fraud-related charge-off. (5) Annualized.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) First Quarter Fourth Quarter Third Quarter 2011 (3) 2010 (4) 2010 ----------------- ----------------- ----------------- Net Net Net Charge- Charge- Charge- Net Offs to Net Offs to Net Offs to Charge- Average Charge- Average Charge- Average (in thousands) Offs Loans(5) Offs Loans(5) Offs Loans(5) -------- ------- -------- ------- -------- ------- NET CHARGE-OFFS BY CATEGORY Commercial (sec. by RE) $ 48,607 11.07% $ 6,493 1.45% $ 14,212 3.16% Commercial construction 49,715 76.95 3,924 5.12 1,972 2.40 Commercial & industrial 4,040 3.64 2,891 2.54 1,207 1.07 -------- -------- -------- Total commercial 102,362 16.66 13,308 2.09 17,391 2.70 Residential construction 92,138 58.20 24,497 13.28 23,934 11.99 Residential mortgage 36,383 11.62 9,176 2.80 7,695 2.29 Consumer / installment 691 2.16 687 2.06 978 2.90 -------- -------- -------- Total $231,574 20.71 $ 47,668 4.03 $ 49,998 4.12 ======== ======== ======== NET CHARGE-OFFS BY MARKET Atlanta MSA $ 56,489 17.86% $ 15,222 4.48% $ 13,753 3.97% Gainesville MSA 8,616 11.93 3,434 4.37 1,143 1.40 North Georgia 123,305 29.66 18,537 4.26 26,554 5.92 Western North Carolina 26,447 15.61 5,154 2.87 5,509 2.99 Coastal Georgia 12,003 14.80 3,670 4.27 2,702 3.05 East Tennessee 4,714 7.47 1,651 2.53 337 .52 -------- -------- -------- Total $231,574 20.71 $ 47,668 4.03 $ 49,998 4.12 ======== ======== ======== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) The NPA activity shown for the first quarter of 2011 is presented with all activity related to loans transferred to the loans held for sale classification on one line as if those loans were transferred to held for sale at the beginning of the period. (3) Includes charge-offs on loans related to United's previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first quarter of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first quarter of 2011. (4)North Carolina residential construction net charge-offs for the fourth quarter of 2010 exclude a$11.8 million partial recovery of a 2007 fraud-related charge-off. (5) Annualized.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality - Net Charge-Offs First Quarter 2011 (1) Asset Disposition Plan ----------------------------------- Bulk Loan Sale (2) First ----------------- Other Fore- Other Quarter Perform- Non- Bulk closure Net 2011 Net ing performing Loan Charge- Charge- Charge- (in thousands) Loans Loans Sales(3) Offs(4) Offs Offs -------- -------- -------- -------- -------- -------- NET CHARGE-OFFS BY CATEGORY Commercial (sec. by RE) $ 29,451 $ 11,091 $ 3,318 $ 1,905 $ 2,842 $ 48,607 Commercial construction 32,530 15,328 292 419 1,146 49,715 Commercial & industrial 365 2,303 859 - 513 4,040 -------- -------- -------- -------- -------- -------- Total commercial 62,346 28,722 4,469 2,324 4,501 102,362 Residential construction 43,018 23,459 3,325 11,693 10,643 92,138 Residential mortgage 13,917 14,263 1,676 1,538 4,989 36,383 Consumer / installment 86 168 30 24 383 691 -------- -------- -------- -------- -------- -------- Total $119,367 $ 66,612 $ 9,500 $ 15,579 $ 20,516 $231,574 ======== ======== ======== ======== ======== ======== NET CHARGE-OFFS BY MARKET Atlanta MSA $ 37,186 $ 8,545 $ 1,428 $ 6,034 $ 3,296 $ 56,489 Gainesville MSA 3,563 2,442 957 700 954 8,616 North Georgia 57,969 47,699 2,508 6,585 8,544 123,305 Western North Carolina 11,138 4,743 2,415 1,402 6,749 26,447 Coastal Georgia 6,835 2,180 2,013 634 341 12,003 East Tennessee 2,676 1,003 179 224 632 4,714 -------- -------- -------- -------- -------- -------- Total $119,367 $ 66,612 $ 9,500 $ 15,579 $ 20,516 $231,574 ======== ======== ======== ======== ======== ======== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) Charge-offs totaling$186 million were recognized on the bulk loan sale in the first quarter of 2011. The loans were transferred to the loans held for sale category in anticipation of the second quarter bulk loan sale that was completed onApril 18, 2011 . (3) Losses on smaller bulk sale transactions completed during the first quarter of 2011. (4) Loan charge-offs recognized in the first quarter of 2011 related to loans transferred to foreclosed properties. Such charge-offs were elevated in the first quarter as a result of the asset disposition plan, which called for aggressive write downs to expedite sales in the second and third quarters of 2011.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality - Bulk Loan Sale Summary (1) Performing Loans ------------------------------------ Carrying Charge-Offs Loans Held (in thousands) Amount (2) (3) for Sale(4) ----------- ------------ ----------- BY CATEGORY Commercial (sec. by RE) $ 40,902 $ 29,451 $ 11,451 Commercial construction 45,490 32,530 12,960 Commercial & industrial 504 365 139 ----------- ------------ ----------- Total commercial 86,896 62,346 24,550 Residential construction 59,747 43,018 16,729 Residential mortgage 19,342 13,917 5,425 Consumer / installment 120 86 34 ----------- ------------ ----------- Total $ 166,105 $ 119,367 $ 46,738 =========== ============ =========== BY MARKET Atlanta MSA $ 51,647 $ 37,186 $ 14,461 Gainesville MSA 4,949 3,563 1,386 North Georgia 80,831 57,969 22,862 Western North Carolina 15,468 11,138 4,330 Coastal Georgia 9,493 6,835 2,658 East Tennessee 3,717 2,676 1,041 ----------- ------------ ----------- Total $ 166,105 $ 119,367 $ 46,738 =========== ============ =========== (1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed onApril 18, 2011 . (2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale. (3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date throughMarch 31, 2011 that are part of the settlement. (4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality - Bulk Loan Sale Summary (1) Nonperforming Loans ------------------------------------- Carrying Charge-Offs Loans Held (in thousands) Amount (2) (3) for Sale(4) ----------- ------------- ----------- BY CATEGORY Commercial (sec. by RE) $ 17,202 $ 11,091 $ 6,111 Commercial construction 22,440 15,328 7,112 Commercial & industrial 3,398 2,303 1,095 ----------- ------------- ----------- Total commercial 43,040 28,722 14,318 Residential construction 35,509 23,459 12,050 Residential mortgage 21,717 14,263 7,454 Consumer / installment 237 168 69 ----------- ------------- ----------- Total $ 100,503 $ 66,612 $ 33,891 =========== ============= =========== BY MARKET Atlanta MSA $ 13,755 $ 8,545 $ 5,210 Gainesville MSA 3,695 2,442 1,253 North Georgia 70,901 47,699 23,202 Western North Carolina 7,228 4,743 2,485 Coastal Georgia 3,528 2,180 1,348 East Tennessee 1,396 1,003 393 ----------- ------------- ----------- Total $ 100,503 $ 66,612 $ 33,891 =========== ============= =========== (1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed onApril 18, 2011 . (2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale. (3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date throughMarch 31, 2011 that are part of the settlement. (4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality - Bulk Loan Sale Summary (1) Total Loans ------------------------------------- Carrying Charge-Offs Loans Held (in thousands) Amount (2) (3) for Sale(4) ----------- ------------- ----------- BY CATEGORY Commercial (sec. by RE) $ 58,104 $ 40,542 $ 17,562 Commercial construction 67,930 47,858 20,072 Commercial & industrial 3,902 2,668 1,234 ----------- ------------- ----------- Total commercial 129,936 91,068 38,868 Residential construction 95,256 66,477 28,779 Residential mortgage 41,059 28,180 12,879 Consumer / installment 357 254 103 ----------- ------------- ----------- Total $ 266,608 $ 185,979 $ 80,629 =========== ============= =========== BY MARKET Atlanta MSA $ 65,402 $ 45,731 $ 19,671 Gainesville MSA 8,644 6,005 2,639 North Georgia 151,732 105,668 46,064 Western North Carolina 22,696 15,881 6,815 Coastal Georgia 13,021 9,015 4,006 East Tennessee 5,113 3,679 1,434 ----------- ------------- ----------- Total $ 266,608 $ 185,979 $ 80,629 =========== ============= =========== (1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed onApril 18, 2011 . (2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale. (3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date throughMarch 31, 2011 that are part of the settlement. (4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.UNITED COMMUNITY BANKS, INC. Consolidated Statement of Income (Unaudited) Three Months Ended March 31, -------------------- (in thousands, except per share data) 2011 2010 --------- --------- Interest revenue: Loans, including fees $ 61,107 $ 72,215 Investment securities, including tax exempt of$259 and $311 13,604 16,203 Federal funds sold, commercial paper and deposits in banks 819 938 --------- --------- Total interest revenue 75,530 89,356 --------- --------- Interest expense: Deposits: NOW 1,324 1,854 Money market 2,028 1,757 Savings 77 84 Time 11,732 20,198 --------- --------- Total deposit interest expense 15,161 23,893 Federal funds purchased, repurchase agreements and other short-term borrowings 1,042 1,038 Federal Home Loan Bank advances 590 977 Long-term debt 2,780 2,662 --------- --------- Total interest expense 19,573 28,570 --------- --------- Net interest revenue 55,957 60,786 Provision for loan losses 190,000 75,000 --------- --------- Net interest revenue after provision for loan losses (134,043) (14,214) --------- --------- Fee revenue: Service charges and fees 6,720 7,447 Mortgage loan and other related fees 1,494 1,479 Brokerage fees 677 567 Securities gains, net 55 61 Other 2,892 2,112 --------- --------- Total fee revenue 11,838 11,666 --------- --------- Total revenue (122,205) (2,548) --------- --------- Operating expenses: Salaries and employee benefits 24,924 24,360 Communications and equipment 3,344 3,273 Occupancy 4,074 3,814 Advertising and public relations 978 1,043 Postage, printing and supplies 1,118 1,225 Professional fees 3,330 1,943 Foreclosed property 64,899 10,813 FDIC assessments and other regulatory charges 5,413 3,626 Amortization of intangibles 762 802 Other 6,429 3,921 --------- --------- Total operating expenses 115,271 54,820 --------- --------- Loss from continuing operations before income taxes (237,476) (57,368) Income tax benefit (94,990) (22,910) --------- --------- Net loss from continuing operations (142,486) (34,458) (Loss) income from discontinued operations, net of income taxes - (101) Gain from sale of subsidiary, net of income taxes and selling costs - 1,266 --------- --------- Net loss (142,486) (33,293) Preferred stock dividends and discount accretion 2,778 2,572 --------- --------- Net loss available to common shareholders $(145,264) $ (35,865) ========= ========= Loss from continuing operations per common share - Basic / Diluted $ (1.57) $ (.39) Loss per common share - Basic / Diluted (1.57) (.38) Weighted average common shares outstanding - Basic / Diluted 92,330 94,390UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheet (in thousands, except share and per share data) March 31, December 31, March 31, 2011 2010 2010 ----------- ----------- ----------- (unaudited) (audited) (unaudited) ASSETS Cash and due from banks $ 153,891 $ 95,994 $ 105,613 Interest-bearing deposits in banks 465,656 111,901 99,893 Federal funds sold, commercial paper and short-term investments 470,087 441,562 183,049 ----------- ----------- ----------- Cash and cash equivalents 1,089,634 649,457 388,555 Securities available for sale 1,638,494 1,224,417 1,526,589 Securities held to maturity (fair value $248,361 and $267,988) 245,430 265,807 - Loans held for sale 80,629 - - Mortgage loans held for sale 25,364 35,908 21,998 Loans, net of unearned income 4,194,372 4,604,126 4,992,045 Less allowance for loan losses 133,121 174,695 173,934 ----------- ----------- ----------- Loans, net 4,061,251 4,429,431 4,818,111 Assets covered by loss sharing agreements with the FDIC 125,789 131,887 169,287 Premises and equipment, net 179,143 178,239 181,217 Accrued interest receivable 21,687 24,299 30,492 Goodwill and other intangible assets 10,684 11,446 224,394 Foreclosed property 54,378 142,208 136,275 Net deferred tax asset 266,367 166,937 92,986 Other assets 174,742 183,160 247,114 ----------- ----------- ----------- Total assets $ 7,973,592 $ 7,443,196 $ 7,837,018 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Demand $ 864,708 $ 793,414 $ 740,727 NOW 1,320,136 1,424,781 1,344,973 Money market 967,938 891,252 729,283 Savings 193,591 183,894 186,699 Time: Less than $100,000 1,576,505 1,496,700 1,643,059 Greater than $100,000 990,289 1,002,359 1,132,034 Brokered 684,581 676,772 710,813 ----------- ----------- ----------- Total deposits 6,597,748 6,469,172 6,487,588 Federal funds purchased, repurchase agreements, and other short-term borrowings 102,107 101,067 102,480 Federal Home Loan Bank advances 55,125 55,125 114,303 Long-term debt 150,166 150,146 150,086 Unsettled securities purchases 177,532 - 17,588 Accrued expenses and other liabilities 40,766 32,171 39,078 ----------- ----------- ----------- Total liabilities 7,123,444 6,807,681 6,911,123 ----------- ----------- ----------- Shareholders' equity: Preferred stock,$1 par value; 10,000,000 shares authorized; Series A;$10 stated value; 21,700 shares issued and outstanding 217 217 217 Series B;$1,000 stated value; 180,000 shares issued and outstanding 176,049 175,711 174,727 Series D;$1,000 stated value; 16,613 shares issued and outstanding 16,613 - - Series F;$1,000 stated value; 195,872 shares issued and outstanding 195,872 - - Series G;$1,000 stated value; 151,185 shares issued and outstanding 151,185 - - Common stock,$1 par value; 200,000,000 shares authorized; 104,515,553, 94,685,003 and 94,175,857 shares issued and outstanding 104,516 94,685 94,176 Common stock issuable; 397,138, 336,437 and 262,002 shares 3,681 3,894 4,127 Capital surplus 655,350 665,496 622,803 Accumulated deficit (480,831) (335,567) (15,481) Accumulated other comprehensive income 27,496 31,079 45,326 ----------- ----------- ----------- Total shareholders' equity 850,148 635,515 925,895 ----------- ----------- ----------- Total liabilities and shareholders' equity $ 7,973,592 $ 7,443,196 $ 7,837,018 =========== =========== ===========UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended March 31, 2011 ------------------------- Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate ---------- -------- ---- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $4,598,860 $ 61,070 5.39% Taxable securities (3) 1,599,481 13,345 3.34 Tax-exempt securities (1)(3) 25,827 424 6.57 Federal funds sold and other interest-earning assets 677,453 1,126 .66 ---------- -------- Total interest-earning assets 6,901,621 75,965 4.45 ---------- -------- Non-interest-earning assets: Allowance for loan losses (169,113) Cash and due from banks 134,341 Premises and equipment 179,353 Other assets (3) 548,348 ---------- Total assets $7,594,550 ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,373,142 $ 1,324 .39 Money market 928,542 2,028 .89 Savings 187,423 77 .17 Time less than $100,000 1,540,342 5,451 1.44 Time greater than $100,000 990,881 4,151 1.70 Brokered 698,288 2,130 1.24 ---------- -------- Total interest-bearing deposits 5,718,618 15,161 1.08 ---------- -------- Federal funds purchased and other borrowings 101,097 1,042 4.18 Federal Home Loan Bank advances 55,125 590 4.34 Long-term debt 150,157 2,780 7.51 ---------- -------- Total borrowed funds 306,379 4,412 5.84 ---------- -------- Total interest-bearing liabilities 6,024,997 19,573 1.32 -------- Non-interest-bearing liabilities: Non-interest-bearing deposits 841,351 Other liabilities 58,634 ---------- Total liabilities 6,924,982 Shareholders' equity 669,568 ---------- Total liabilities and shareholders' equity$7,594,550 ========== Net interest revenue $ 56,392 ======== Net interest-rate spread 3.13% ==== Net interest margin (4) 3.30% ==== (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 and loans that are held for sale. (3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of$27.2 million in 2011 and$43.2 million in 2010 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, 2010 ------------------------- Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate ---------- -------- ---- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $5,172,847 $ 72,219 5.66% Taxable securities (3) 1,487,646 15,892 4.27 Tax-exempt securities (1)(3) 30,050 509 6.78 Federal funds sold and other interest-earning assets 394,348 1,229 1.25 ---------- -------- Total interest-earning assets 7,084,891 89,849 5.13 ---------- -------- Non-interest-earning assets: Allowance for loan losses (187,288) Cash and due from banks 104,545 Premises and equipment 181,927 Other assets (3) 762,228 ---------- Total assets $7,946,303 ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,361,696 $ 1,854 .55 Money market 723,470 1,757 .98 Savings 180,448 84 .19 Time less than $100,000 1,692,652 8,891 2.13 Time greater than $100,000 1,155,776 6,770 2.38 Brokered 736,999 4,537 2.50 ---------- -------- Total interest-bearing deposits 5,851,041 23,893 1.66 ---------- -------- Federal funds purchased and other borrowings 102,058 1,038 4.12 Federal Home Loan Bank advances 114,388 977 3.46 Long-term debt 150,078 2,662 7.19 ---------- -------- Total borrowed funds 366,524 4,677 5.18 ---------- -------- Total interest-bearing liabilities 6,217,565 28,570 1.86 -------- Non-interest-bearing liabilities: Non-interest-bearing deposits 718,975 Other liabilities 64,337 ---------- Total liabilities 7,000,877 Shareholders' equity 945,426 ---------- Total liabilities and shareholders' equity$7,946,303 ========== Net interest revenue $ 61,279 ======== Net interest-rate spread 3.27% ==== Net interest margin (4) 3.49% ==== (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 and loans that are held for sale. (3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of$27.2 million in 2011 and$43.2 million in 2010 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. Schuette Chief Financial Officer (706) 781-2266 Email Contact
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