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SECURITIES EXCHANGE ACT OF 1934
July 26, 2005
| Georgia | No. 0-21656 | No. 58-180-7304 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Blairsville, Georgia 30512
(Address of principal executive offices)
(706) 781-2265
(Former name or former address, if changed since last report)
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) |
| Item 2.02 Results of Operation and Financial Condition | ||||||||
| Item 9.01 Financial Statements and Exhibits | ||||||||
| SIGNATURES | ||||||||
| EX-99.1 PRESS RELEASE | ||||||||
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| Item 2.02 | Results of Operation and Financial Condition On July 26, 2005, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the second quarter ended June 30, 2005 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this report. In connection with issuing the News Release, on July 26, 2005 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. The News Release contains a description of the Registrant’s earnings excluding merger-related expenses (referred to as “Operating Earnings”, “Net Operating Income”, “Diluted Operating Earnings Per Share”) related to the June 1, 2004 acquisition of Fairbanco Holding Company, Inc., headquartered in Fairburn, Georgia; the November 1, 2004 acquisition of Eagle National Bank, headquartered in Stockbridge, Georgia; and the December 1, 2004 acquisition of Liberty National Bancshares, Inc., headquartered in Conyers, Georgia. Management believes that a presentation of the Registrant’s earnings excluding merger-related expenses as a financial measure provides useful information to investors because it provides information about the Registrant’s financial performance from its ongoing business operations. The merger-related expenses are principally related to equipment lease termination, legal and other professional fees and systems conversion costs. |
| Item 9.01 | Financial Statements and Exhibits |
| (a) | Financial statements: None | ||
| (b) | Pro forma financial information: None | ||
| (c) | Exhibits: |
| 99.1 | Press Release, dated July 26, 2005 |
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| /s/ Rex S. Schuette | ||||
| Rex S. Schuette | ||||
| July 26, 2005 | Executive Vice President and Chief Financial Officer | |||
EXHIBIT 99.1 [UNITED COMMUNITY BANKS LOGO] For Immediate Release For more information: Rex S. Schuette Chief Financial Officer (706) 781-2265 Rex_Schuette@ucbi.com UNITED COMMUNITY BANKS, INC. REPORTS 13% GAIN IN DILUTED EARNINGS PER SHARE FOR SECOND QUARTER 2005 HIGHLIGHTS: - - Record Second Quarter Earnings Diluted Operating Earnings Per Share of 35 Cents - Up 13% Net Operating Income of $13.8 Million - Up 21% Return on Tangible Equity of 19.21% - - Strong Loan Demand and Rise in Net Interest Margin and Fee Revenue Drove Performance - - Significant Entry into The Gainesville MSA Expands Franchise BLAIRSVILLE, GA, July 26, 2005 - United Community Banks, Inc. (Nasdaq: UCBI), Georgia's third largest bank holding company, today announced record second quarter 2005 results that included a 21% rise in net operating income, a 13% gain in diluted operating earnings per share and a 29% increase in total revenue from the second quarter of 2004. For the quarter, net operating income rose to $13.8 million from $11.4 million a year earlier. Diluted operating earnings per share of $.35 increased $.04 from $.31 a year ago. Total revenue, on a taxable equivalent basis, was $60.6 million compared with $47.1 million for the second quarter of 2004. Return on tangible equity was 19.21% and return on assets was 1.03%, compared with 19.70% and 1.07%, respectively, a year ago.
"Our financial performance in the second quarter of 2005 was outstanding by all measures," said Jimmy Tallent, President and Chief Executive Officer. "Total assets at quarter-end surpassed $5.5 billion, an increase of more than $1 billion, or 22%, from a year ago. Loan growth continued at a record pace, increasing $195 million during the quarter, or 20% on an annualized basis, which helped drive the increase in net interest revenue. Our net interest margin rose to 4.12%, up 17 basis points from a year ago as increasing short-term interest rates positively affected our slightly asset-sensitive balance sheet. Fee revenue increased in every category and was up 26% over 2004. With this growth in revenue and operating earnings, United Community Banks remains on track to meet our performance goals of double-digit earnings per share growth and a return on tangible equity above 18% for 2005." For the six months, net operating income of $27.2 million increased $4.9 million, or 22%, from $22.3 million for the first half of 2004. Diluted operating earnings per share of $.69 increased $.08, or 13%, from $.61 for the first six months of 2004. Total revenue, on a taxable equivalent basis, totaled $116.7 million, up 26% from $92.4 million a year ago. Return on tangible equity was 19.52% and return on assets was 1.04%, compared with 19.79% and 1.07%, respectively, a year ago. Net operating income excludes pre-tax merger-related charges in 2004. For the second quarter of 2004 and for the first six months of 2004, merger-related charges were $464 thousand resulting from the acquisition of 1st Community Bank, completed on June 1, 2004. Including these merger-related charges for the second quarter and first six months of 2004, reported net income was $11.0 million and $22.0 million, respectively; reported diluted earnings per share was $.30 and $.60, respectively; and, reported return on equity 14.40% and 14.63%, respectively. At June 30, 2005, total loans were $4.1 billion, up $735 million, or 22%, from a year ago. Organic growth, excluding acquisitions, was $528 million, or 16%. "Loan demand has remained consistent across all our markets, providing significant growth opportunities," Tallent said. "Organic loan growth, accomplished through disciplined step-by-step execution and accompanied by an uncompromising focus on sound credit quality, is essential to our balanced growth strategy."
"This strategy also includes focused expansion with the right people through de novo offices," Tallent explained. "An excellent example of this strategy was our May entry into the Gainesville market. In May, we partnered with three experienced local banking executives to form a de novo bank, United Community Bank - Hall County. This new bank is managed by Chairman Rich White, CEO Dick Valentine, and President Burton Stephens - all of whom are long-time bankers in the Gainesville market. Shortly after joining, they hired 55 experienced bankers from this market and by the end of the second quarter the bank had grown to more than $90 million in loans and $50 million in new deposits. Our current plans include opening a main office location in downtown Gainesville within 90 days and two banking offices in the surrounding Gainesville MSA within the next 30 days. We also plan to open two additional banking offices in this market in early 2006. "The Gainesville MSA, which encompasses all of Hall County, is the 7th fastest growing MSA in the country with over 100,000 in population," Tallent added. "It's a testimony to the success and strength of our existing franchise that we were able to absorb such a significant de novo undertaking and still deliver on our primary financial goals of double digit earnings per share growth and a return on tangible equity above 18%." Taxable equivalent net interest revenue of $51.3 million for the second quarter rose $12.0 million, or 31%, from the same period a year ago. Recent acquisitions added approximately $3.8 million to net interest revenue, resulting in a core growth rate of 21%. Taxable equivalent net interest margin for the second quarter was 4.12% as compared with 3.95% a year ago and 4.05% last quarter. "We have maintained our net interest margin near the 4% level for the past 11 quarters and expect it to remain at that level through 2005," Tallent said. "Our balance sheet is slightly asset sensitive, which is allowing us to benefit modestly from a rising interest rate environment." The second quarter provision for loan losses was $2.8 million and was up $1 million from a year earlier and increased $400,000 from the first quarter of 2005. Net charge-offs to average loans were 14 basis points for the second quarter, compared with 12 basis points for the first quarter of 2005 and 10 basis points for the second quarter of 2004. At quarter-end, non-performing assets totaled $13.5 million compared with $13.7 million at the end of the first quarter of 2005 and $8.8
million a year ago. Non-performing assets as a percentage of total assets were 24 basis points at quarter-end, compared with 26 basis points at March 31, 2005 and 19 basis points at June 30, 2004. Commenting on asset quality, Tallent said, "Our level of nonperforming assets compares very favorably with our peer banks and is well within our tolerance level. At this low level, we expect volatility in comparisons to prior periods, even while our credit quality remains sound. Strong credit quality remains essential to our high performance and growth. United's credit quality success is rooted in our bedrock strategy of securing loans with hard assets." Fee revenue of $12.2 million rose $2.5 million, or 26%, from $9.6 million a year ago with strong growth in every category. "We increased fee revenue by growing deposits through our core deposit program and cross-selling other products and services," Tallent said. "We also experienced healthy increases in consulting, mortgage and brokerage fees." Service charges and fees on deposit accounts increased $968,000 to $6.3 million, primarily due to growth in transactions and new accounts resulting from the core deposit program. Consulting fees of $1.7 million rose $283,000, or 20%, due to continued growth in risk management and financial-service practices as well as strong growth across existing consulting services. Brokerage fees of $768,000 increased $253,000, or 49%, due to strong market activity. Other fee revenue of $1.7 million was up $873,000, due primarily to $530,000 in gains on the sale of two former banking office locations and $235,000 in gains on the sale of SBA loans. "We remain sharply focused on growing core deposits and related fee revenue," Tallent said. "We continued to promote our very successful `Refer-a-Friend' core deposit program that rewards our many satisfied customers for referring their friends and family members to us. Our relentless focus on providing the highest level of customer service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of 75%. Our high level of customer satisfaction helps us build our deposit base through customer referrals while also maintaining long-term relationships with existing customers. During the quarter, our core deposit program, along with other initiatives, added 12,000 accounts and $75 million in balances."
Operating expenses increased $9.4 million, or 32%, to $38.8 million from the second quarter of 2004. Nearly $5.3 million of this increase related to operating expenses of the three banks acquired in 2004 that were not included in last year's results and the operating costs of the de novo expansion into Gainesville during the quarter. Salaries and employee benefit costs of $25.3 million increased $6.6 million, or 35%, with approximately $3.9 million resulting from acquisitions and the recent de novo expansion. The balance of the increase was due to an increase in staff to support business growth and related hiring costs and higher commissions related to the increase in mortgage and brokerage fee revenue. Communications and equipment expenses of $3.1 million increased $438,000, or 16%, due to the acquisitions and investments in technology equipment to support business growth. Advertising and marketing expense of $1.7 million rose $708,000, reflecting the higher program costs of initiatives to raise core deposits and marketing campaigns to generate brand recognition in new markets. Occupancy expense of $2.7 million increased $445,000 reflecting the cost of operating additional banking offices added through acquisitions and de novo expansion. Professional fees of $1.1 million were up $276,000, due to higher costs related to the volume of new loans generated and overall business growth. The increase in all other operating expense categories was related to the recent acquisitions and business growth. "Our operating efficiency ratio of 61.18% for the quarter was slightly above our long-term efficiency goal of 58% to 60%, reflecting the higher operating costs of our recent de novo expansion into Gainesville," Tallent said. "Looking forward, we believe United Community Banks is on target to achieve operating earnings per share growth during 2005 within our long-term goal of 12% to 15%, and will likely remain at the lower end of the range this year due to the significant expansion in the Gainesville market," Tallent said. "We anticipate core loan growth will continue slightly above the high end of our targeted range of 10% to 14% and net interest margin will come down slightly from our current level, but remain above 4% for 2005. Our outlook is based on a continued, stable economic environment in our markets combined with maintaining strong credit quality. We are well positioned for additional increases in short-term interest rates and should benefit modestly if, and when, they occur."
"We remain committed to excellent customer service, superior operating performance and solid credit quality as we continue to grow our franchise," Tallent added. "Pursuing a balanced- growth strategy focused on strong internal growth in existing markets, complemented by selective de novo offices and mergers in other attractive markets, will remain the foundation on which we continue to build superior performance and long-term shareholder value." Conference Call United Community Banks will hold a conference call on Tuesday, July 26, 2005, at 11:00 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for the remainder of the year. The telephone number for the conference call is (800) 659-1966 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. 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 $5.5 billion and operates 24 community banks with 85 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 in its markets. United Community Banks also offers the convenience of 24-hour access to its services through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq National Market under the symbol UCBI. Additional information may be found at the company's web site, 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. annual report filed on Form 10-K with the Securities and Exchange Commission. (Tables Follow)
UNITED COMMUNITY BANKS, INC. SELECTED FINANCIAL INFORMATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 2005 2004 SECOND ------------------------- -------------------------------------- QUARTER (in thousands, except per share SECOND FIRST FOURTH THIRD SECOND 2005-2004 data; taxable equivalent) QUARTER QUARTER QUARTER QUARTER QUARTER CHANGE - ------------------------------------------------------------------------------------------------------------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) INCOME SUMMARY Interest revenue $ 80,701 $ 73,649 $ 66,761 $ 61,358 $ 56,680 Interest expense 29,450 25,367 21,448 19,142 17,432 ----------- ----------- ----------- ----------- ----------- Net interest revenue 51,251 48,282 45,313 42,216 39,248 31% Provision for loan losses 2,800 2,400 2,000 2,000 1,800 Fee revenue 12,179 10,200 10,757 9,857 9,647 26 ----------- ----------- ----------- ----------- ----------- TOTAL REVENUE 60,630 56,082 54,070 50,073 47,095 29 Operating expenses (1) 38,808 34,779 33,733 31,296 29,363 32 ----------- ----------- ----------- ----------- ----------- Income before taxes 21,822 21,303 20,337 18,777 17,732 23 Income taxes 8,049 7,862 7,427 6,822 6,379 ----------- ----------- ----------- ----------- ----------- NET OPERATING INCOME 13,773 13,441 12,910 11,955 11,353 21 Merger-related charges, net of tax - - 261 - 304 ----------- ----------- ----------- ----------- ----------- NET INCOME $ 13,773 $ 13,441 $ 12,649 $ 11,955 $ 11,049 25 =========== =========== =========== =========== =========== OPERATING PERFORMANCE (1) Earnings per common share: Basic $ .36 $ .35 $ .35 $ .33 $ .32 13 Diluted .35 .34 .34 .32 .31 13 Return on tangible equity (3) 19.21% 19.86% 19.96% 19.41% 19.70% Return on assets 1.03 1.06 1.07 1.05 1.07 Efficiency ratio 61.18 59.47 60.20 60.11 60.05 Dividend payout ratio 19.44 20.00 17.14 18.18 18.75 GAAP PERFORMANCE Per common share: Basic earnings $ .36 $ .35 $ .34 $ .33 $ .31 16 Diluted earnings .35 .34 .33 .32 .30 17 Cash dividends declared .07 .07 .06 .06 .06 17 Book value 10.86 10.42 10.39 9.58 9.10 19 Tangible book value (3) 7.85 7.40 7.34 7.28 6.77 16 Key performance ratios: Return on equity (2) 13.46% 13.68% 14.15% 14.20% 14.40% Return on assets 1.03 1.06 1.05 1.05 1.04 Net interest margin 4.12 4.05 4.05 3.99 3.95 Dividend payout ratio 19.44 20.00 17.65 18.18 19.35 Equity to assets 7.65 7.71 7.54 7.50 7.30 Tangible equity to assets (3) 5.62 5.58 5.75 5.76 5.74 ASSET QUALITY Allowance for loan losses $ 49,873 $ 48,453 $ 47,196 $ 43,548 $ 42,558 Non-performing assets 13,495 13,676 8,725 10,527 8,812 Net charge-offs 1,380 1,143 1,183 1,010 789 Allowance for loan losses to loans 1.22% 1.25% 1.26% 1.27% 1.27% Non-performing assets to total assets .24 .26 .17 .23 .19 Net charge-offs to average loans .14 .12 .13 .12 .10 AVERAGE BALANCES Loans $ 3,942,077 $ 3,797,479 $ 3,572,824 $ 3,384,281 $ 3,235,262 22 Investment securities 996,096 946,194 805,766 762,994 715,586 39 Earning assets 4,986,339 4,819,961 4,456,403 4,215,472 3,991,797 25 Total assets 5,338,398 5,164,464 4,781,018 4,521,842 4,274,442 25 Deposits 3,853,884 3,717,916 3,500,842 3,351,188 3,178,776 21 Stockholders' equity 408,352 398,164 360,668 338,913 311,942 31 Common shares outstanding: Basic 38,270 38,198 37,056 36,254 35,633 Diluted 39,436 39,388 38,329 37,432 36,827 AT PERIOD END Loans $ 4,072,811 $ 3,877,575 $ 3,734,905 $ 3,438,417 $ 3,338,309 22 Investment securities 990,500 928,328 879,978 726,734 739,667 34 Earning assets 5,161,067 4,907,743 4,738,389 4,280,643 4,172,049 24 Total assets 5,540,242 5,265,771 5,087,702 4,592,655 4,525,446 22 Deposits 3,959,226 3,780,521 3,680,516 3,341,525 3,339,848 19 Stockholders' equity 415,994 398,886 397,088 347,795 330,458 26 Common shares outstanding 38,283 38,249 38,168 36,255 36,246 FOR THE SIX YTD (in thousands, except per share MONTHS ENDED 2005-2004 data; taxable equivalent) 2005 2004 CHANGE - --------------------------------------------------------------------------- (Unaudited) (Unaudited) INCOME SUMMARY Interest revenue $ 154,350 $ 111,267 Interest expense 54,817 34,204 ----------- ----------- Net interest revenue 99,533 77,063 29% Provision for loan losses 5,200 3,600 Fee revenue 22,379 18,925 18 ----------- ----------- TOTAL REVENUE 116,712 92,388 26 Operating expenses (1) 73,587 57,539 28 ----------- ----------- Income before taxes 43,125 34,849 24 Income taxes 15,911 12,558 ----------- ----------- NET OPERATING INCOME 27,214 22,291 22 Merger-related charges, net of tax - 304 ----------- ----------- NET INCOME $ 27,214 $ 21,987 24 =========== =========== OPERATING PERFORMANCE (1) Earnings per common share: Basic $ .71 $ .63 13 Diluted .69 .61 13 Return on tangible equity (3) 19.52% 19.79% Return on assets 1.04 1.07 Efficiency ratio 60.36 59.94 Dividend payout ratio 19.72 19.05 GAAP PERFORMANCE Per common share: Basic earnings $ .71 $ .62 15 Diluted earnings .69 .60 15 Cash dividends declared .14 .12 17 Book value 10.86 9.10 19 Tangible book value (3) 7.85 6.77 16 Key performance ratios: Return on equity (2) 13.57% 14.63% Return on assets 1.04 1.06 Net interest margin 4.09 3.97 Dividend payout ratio 19.72 19.35 Equity to assets 7.68 7.38 Tangible equity to assets (3) 5.60 5.81 ASSET QUALITY Allowance for loan losses $ 49,873 $ 42,558 Non-performing assets 13,495 8,812 Net charge-offs 2,523 1,424 Allowance for loan losses to loans 1.22% 1.27 Non-performing assets to total assets .24 .19 Net charge-offs to average loans .13 .09 AVERAGE BALANCES Loans $ 3,870,177 $ 3,165,569 22 Investment securities 971,283 684,226 42 Earning assets 4,903,610 3,900,337 26 Total assets 5,251,913 4,179,664 26 Deposits 3,786,276 3,067,251 23 Stockholders' equity 403,286 308,434 31 Common shares outstanding: Basic 38,234 35,477 Diluted 39,412 36,655 AT PERIOD END Loans $ 4,072,811 $ 3,338,309 22 Investment securities 990,500 739,667 34 Earning assets 5,161,067 4,172,049 24 Total assets 5,540,242 4,525,446 22 Deposits 3,959,226 3,339,848 19 Stockholders' equity 415,994 330,458 26 Common shares outstanding 38,283 36,246 (1) Excludes pre-tax merger-related charges totaling $406,000 or $.01 per diluted common share and $464,000 or $.01 per diluted common share in the fourth and second quarters, respectively, of 2004. (2) Net income available to common stockholders divided by average realized common equity which excludes accumulated other comprehensive income. (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized.
UNITED COMMUNITY BANKS, INC. CONSOLIDATED STATEMENT OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004 THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, --------------------------- --------------------------- (in thousands, except per share data) 2005 2004 2005 2004 - --------------------------------------------------------------------------------------------------------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) INTEREST REVENUE: Loans, including fees $ 69,446 $ 49,326 $ 132,913 $ 96,748 Federal funds sold and deposits in banks 150 66 409 177 Investment securities: Taxable 10,190 6,339 19,204 12,408 Tax exempt 528 545 1,053 1,111 ----------- ----------- ----------- ----------- Total interest revenue 80,314 56,276 153,579 110,444 ----------- ----------- ----------- ----------- INTEREST EXPENSE: Deposits: Demand 4,379 1,920 7,906 3,714 Savings 174 93 342 176 Time 15,019 9,773 28,027 19,070 Federal funds purchased 1,106 499 1,977 770 Other borrowings 8,772 5,147 16,565 10,474 ----------- ----------- ----------- ----------- Total interest expense 29,450 17,432 54,817 34,204 ----------- ----------- ----------- ----------- Net interest revenue 50,864 38,844 98,762 76,240 Provision for loan losses 2,800 1,800 5,200 3,600 ----------- ----------- ----------- ----------- Net interest revenue after provision for loan losses 48,064 37,044 93,562 72,640 ----------- ----------- ----------- ----------- FEE REVENUE: Service charges and fees 6,280 5,312 11,894 10,335 Mortgage loan and other related fees 1,742 1,585 3,225 2,865 Consulting fees 1,685 1,402 3,167 2,529 Brokerage fees 768 515 1,210 1,223 Securities losses, net (2) - (2) (4) Other 1,706 833 2,885 1,977 ----------- ----------- ----------- ----------- Total fee revenue 12,179 9,647 22,379 18,925 ----------- ----------- ----------- ----------- TOTAL REVENUE 60,243 46,691 115,941 91,565 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Salaries and employee benefits 25,274 18,662 47,509 36,788 Occupancy 2,718 2,273 5,386 4,555 Communications and equipment 3,115 2,677 6,097 5,224 Postage, printing and supplies 1,369 1,068 2,720 2,210 Professional fees 1,071 795 2,109 1,632 Advertising and public relations 1,699 991 3,062 1,755 Amortization of intangibles 503 395 1,006 766 Merger-related charges - 464 - 464 Other 3,059 2,502 5,698 4,609 ----------- ----------- ----------- ----------- Total operating expenses 38,808 29,827 73,587 58,003 ----------- ----------- ----------- ----------- Income before income taxes 21,435 16,864 42,354 33,562 Income taxes 7,662 5,815 15,140 11,575 ----------- ----------- ----------- ----------- NET INCOME $ 13,773 $ 11,049 $ 27,214 $ 21,987 =========== =========== =========== =========== Net income available to common stockholders $ 13,767 $ 11,048 $ 27,201 $ 21,970 =========== =========== =========== =========== Earnings per common share: Basic $ .36 $ .31 $ .71 $ .62 Diluted .35 .30 .69 .60 Weighted average common shares outstanding (in thousands): Basic 38,270 35,633 38,234 35,477 Diluted 39,436 36,827 39,412 36,655
UNITED COMMUNITY BANKS, INC. CONSOLIDATED BALANCE SHEET FOR THE PERIOD ENDED JUNE 30, DECEMBER 31, JUNE 30, ($ in thousands) 2005 2004 2004 - ------------------------------------------------------------------------------------------------------------- (Unaudited) (Audited) (Unaudited) ASSETS Cash and due from banks $ 117,478 $ 99,742 $ 147,793 Interest-bearing deposits in banks 17,451 35,098 39,186 ----------- ----------- ----------- Cash and cash equivalents 134,929 134,840 186,979 Securities available for sale 990,500 879,978 739,667 Mortgage loans held for sale 34,095 37,094 18,610 Loans, net of unearned income 4,072,811 3,734,905 3,338,309 Less - allowance for loan losses 49,873 47,196 42,558 ----------- ----------- ----------- Loans, net 4,022,938 3,687,709 3,295,751 Premises and equipment, net 105,469 103,679 92,497 Interest receivable 31,909 27,923 23,150 Intangible assets 119,617 121,207 87,657 Other assets 100,785 95,272 81,135 ----------- ----------- ----------- TOTAL ASSETS $ 5,540,242 $ 5,087,702 $ 4,525,446 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Demand $ 590,306 $ 532,879 $ 479,439 Interest-bearing demand 1,141,115 1,055,192 935,489 Savings 177,822 171,898 160,550 Time 2,049,983 1,920,547 1,764,370 ----------- ----------- ----------- Total deposits 3,959,226 3,680,516 3,339,848 Federal funds purchased and repurchase agreements 213,148 130,921 181,439 Federal Home Loan Bank advances 800,316 737,947 535,343 Other borrowings 117,939 113,879 113,877 Accrued expenses and other liabilities 33,619 27,351 24,481 ----------- ----------- ----------- TOTAL LIABILITIES 5,124,248 4,690,614 4,194,988 ----------- ----------- ----------- Stockholders' equity: Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 48,300, 55,900 and 65,500 shares issued and outstanding 372 448 483 Common stock, $1 par value; 100,000,000 shares authorized; 36,620,754, 35,706,573 and 35,706,573 shares issued 38,408 38,408 36,621 Capital surplus 154,480 155,076 116,129 Retained earnings 226,546 204,709 184,572 Treasury stock; 374,362, 417,525 and 739,581 shares, at cost (2,517) (4,413) (6,393) Accumulated other comprehensive (loss) income (1,295) 2,860 (954) ----------- ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 415,994 397,088 330,458 ----------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,540,242 $ 5,087,702 $ 4,525,446 =========== =========== ===========