United Community Banks, Inc. Reports 17% Gain in Diluted Earnings per Share for Second Quarter 2006
BLAIRSVILLE, GA, Jul 25, 2006 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
HIGHLIGHTS:
-- Record Second Quarter Earnings
Diluted Earnings per Share of $.41 -- Up 17%
Net Income of $17 Million -- Up 23%
Return on Tangible Equity of 17.68%
Total Assets Rise to $6.3 Billion
-- Strong Loan Demand and Rise in Net Interest Margin Drove Performance
United Community Banks, Inc. (NASDAQ: UCBI), Georgia's third-largest bank holding company, today announced record financial results for the second quarter of 2006. Compared with the second quarter of 2005, the company achieved a 16% increase in total revenue, a 23% rise in net income and a 17% gain in diluted earnings per share.
For the second quarter of 2006, net income was $16.9 million compared with $13.8 million a year earlier. Diluted earnings per share increased to $.41 from $.35 a year ago. Total revenue, on a taxable equivalent basis, was $70.6 million compared with $60.6 million for the second quarter of 2005. Return on tangible equity was 17.68% and return on assets was 1.10%, compared with 19.21% and 1.03%, respectively, a year ago.
"Strong demand for loans and deposits continued across all markets," said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. "Loans increased $226 million during the second quarter, or 20% on an annualized basis, and helped drive the increase in net interest revenue. We more than funded our loan growth by adding $228 million of deposits this quarter -- more than half were core deposits. The strong loan growth pushed total assets to $6.3 billion, a 14% increase from a year ago. Our net interest margin was 4.34%, up 22 basis points from a year ago and up 1 basis point from last quarter, as rising short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet."
For the first six months of 2006, net income increased $5.8 million to $33.0 million, up 21% from $27.2 million for the first half of 2005. Diluted earnings per share of $.80 increased $.11, or 16%, from $.69 for the first six months of 2005. Total revenue, on a taxable equivalent basis, was $138.6 million, up 19% from $116.7 million a year ago. Return on tangible equity was 17.67% and return on assets was 1.10%, compared with 19.52% and 1.04%, respectively, a year ago.
At June 30, 2006, total loans were $4.8 billion, up $737 million, or 18%, from a year ago. All of the loan growth was organic. "Organic growth, with an uncompromising focus on sound credit quality, is at the core of our balanced growth strategy and is further supported by our focused de novo expansion," Tallent said. "We find the right people and build around them, usually adding two to four new offices a year. The most recent example of this strategy was the announcement yesterday that we will open our 25th community bank in Cleveland, Tennessee, along the high-growth I-75 corridor. Led by veteran Cleveland bankers Mickey Torbett and DeWayne Morrow, our new bank downtown will begin full-service operations as United Community Bank - Cleveland later this month with a total of ten seasoned, local bankers. I am excited to welcome this fine team to our family of United banks and look forward to their growth opportunities in this attractive market."
Tallent continued, "De novo expansion will continue to allow us to open offices in selective new markets and expand our franchise. Earlier in the year, we opened three offices in Georgia -- a second location in Savannah, a fifth location in Hall County, and a commercial loan office in Jasper, just north of Atlanta in Pickens County. Earlier this quarter, we announced an agreement to acquire two banking offices in Sylva and Bryson City, North Carolina and we expect the transaction to close in September. Both of these offices are in markets where we already have a presence and a deep knowledge of the banking environment.
"The highest level of customer service continues to be our distinguishing characteristic," Tallent said. "Our relentless focus on service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of 75%. This personal, caring brand of service is invaluable in building deposits through customer referrals while also maintaining and growing our long-term relationships with existing customers."
For the second quarter, taxable equivalent net interest revenue of $62.3 million was up $11.1 million, or 22%, from the first quarter of 2005. Taxable equivalent net interest margin for the second quarter was 4.34%, compared with 4.12% a year ago and 4.33% for the second quarter of 2006. "Our balance sheet has remained slightly asset sensitive, which allowed us to benefit from the rise in interest rates as reflected in the expansion of our margin throughout 2005 and into the first half of 2006," Tallent said.
The second quarter provision for loan losses was $3.7 million, which increased $900,000 from a year earlier and $200,000 from the first quarter of 2006. Annualized net charge-offs to average loans were 9 basis points for the second quarter, compared with 11 basis points for the first quarter of 2006 and 14 basis points for the second quarter of 2005. At quarter-end, non-performing assets totaled $8.8 million compared with $8.4 million at the end of the first quarter of 2006 and $13.5 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the first quarter of 2006 and down from the 24 basis points at June 30, 2005. "Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success," Tallent said.
Fee revenue of $12.0 million was down slightly from $12.2 million for the second quarter of 2005, primarily due to $530,000 in gains from the sale of two banking offices in the second quarter of 2005. Also impacting fee revenue this quarter was $280,000 in charges for the prepayment of Federal Home Loan Bank advances that were part of our balance sheet management activities. Service charges and fees on deposit accounts increased $548,000 to $6.8 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, consulting fees and brokerage fees remain substantially unchanged from a year ago.
Operating expenses of $43.5 million increased $4.7 million, or 12%, from the second quarter of 2005. Salaries and employee benefit costs of $28.3 million increased $3.0 million, or 12%, from the second quarter of 2005 due to the increase in staff to support our significant expansion efforts and business growth. Communications and equipment expenses increased $616,000 to $3.7 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Advertising and public relations expense rose $249,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in new markets. Occupancy expense increased $198,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. The increase in other operating expense was primarily due to write-downs on foreclosed real estate properties and higher costs to support business growth.
"We had a positive operating leverage of four percent this quarter," Tallent said. "Also, our operating efficiency ratio of 58.53% was within our long-term efficiency goal of 58% to 60%. This reflects the continued strength of our existing franchise, strong revenue growth and disciplined expense controls, which more than offset the cost of reinvesting for the future through our de novo expansion efforts," Tallent said.
"Our outlook for the balance of 2006 is for earnings per share growth at the upper-end of our long-term goal of 12% to 15%," Tallent said. "We anticipate core loan growth to be slightly above our targeted range of 10% to 14%. Our net interest margin has benefited from rising short-term interest rates; however, we expect the margin could decline slightly in the second half of 2006, due to further pricing competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality.
"Our results for the first half of 2006 are leading towards another year of strong growth and superior operating performance," Tallent stated. "We are committed to excellent customer service while maintaining solid credit quality as we continue our efforts to build shareholder value through our balanced growth strategy of strong internal growth, complemented by selective de novo and merger expansion."
Conference Call
United Community Banks will hold a conference call on Tuesday, July 25, 2006, 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 the remainder of 2006. The telephone number for the conference call is (866) 700-7441 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 $6.3 billion and operates 25 community banks with 94 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
2006 2005
------------------------ -----------
(in thousands, except per share Second First Fourth
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 111,728 $ 102,797 $ 95,465
Interest expense 49,407 43,065 38,576
----------- ----------- -----------
Net interest revenue 62,321 59,732 56,889
Provision for loan losses 3,700 3,500 3,500
Fee revenue 11,976 11,758 11,373
----------- ----------- -----------
Total revenue 70,597 67,990 64,762
Operating expenses 43,483 42,222 40,520
----------- ----------- -----------
Income before taxes 27,114 25,768 24,242
Income taxes 10,185 9,729 9,012
----------- ----------- -----------
Net income $ 16,929 $ 16,039 $ 15,230
=========== =========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .42 $ .40 $ .39
Diluted earnings .41 .39 .38
Cash dividends declared .08 .08 .07
Book value 12.34 12.09 11.80
Tangible book value (2) 9.50 9.25 8.94
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.68% 17.66% 18.20%
Return on equity (1)(3) 13.41 13.25 13.30
Return on assets (3) 1.10 1.09 1.05
Net interest margin (3) 4.34 4.33 4.20
Efficiency ratio 58.53 59.06 58.80
Dividend payout ratio 19.05 20.00 17.95
Equity to assets 7.95 8.04 7.69
Tangible equity to assets (2) 6.22 6.24 5.82
ASSET QUALITY
Allowance for loan losses $ 58,508 $ 55,850 $ 53,595
Non-performing assets 8,805 8,367 12,995
Net charge-offs 1,042 1,245 1,793
Allowance for loan losses to loans 1.22% 1.22% 1.22%
Non-performing assets to total
assets .14 .14 .22
Net charge-offs to average loans
(3) .09 .11 .16
AVERAGE BALANCES
Loans $ 4,690,196 $ 4,505,494 $ 4,328,613
Investment securities 1,039,707 1,038,683 1,004,966
Earning assets 5,758,697 5,574,712 5,383,096
Total assets 6,159,152 5,960,801 5,769,632
Deposits 4,842,389 4,613,810 4,354,275
Stockholders' equity 489,821 478,960 443,746
Common shares outstanding:
Basic 40,156 40,088 39,084
Diluted 41,328 41,190 40,379
AT PERIOD END
Loans $ 4,810,277 $ 4,584,155 $ 4,398,286
Investment securities 974,524 983,846 990,687
Earning assets 5,862,614 5,633,381 5,470,718
Total assets 6,331,136 6,070,596 5,865,756
Deposits 4,976,650 4,748,438 4,477,600
Stockholders' equity 496,297 485,414 472,686
Common shares outstanding 40,179 40,119 40,020
(1) Net income available to common stockholders, 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
Second
------------------------ Quarter
(in thousands, except per share Third Second 2006-2005
data; taxable equivalent) Quarter Quarter Change
----------- ----------- ---------
INCOME SUMMARY
Interest revenue $ 89,003 $ 80,701
Interest expense 34,033 29,450
----------- -----------
Net interest revenue 54,970 51,251 22%
Provision for loan losses 3,400 2,800
Fee revenue 12,396 12,179 (2)
----------- -----------
Total revenue 63,966 60,630 16
Operating expenses 41,294 38,808 12
----------- -----------
Income before taxes 22,672 21,822 24
Income taxes 8,374 8,049
----------- -----------
Net income $ 14,298 $ 13,773 23
=========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .37 $ .36 17
Diluted earnings .36 .35 17
Cash dividends declared .07 .07 14
Book value 11.04 10.86 14
Tangible book value (2) 8.05 7.85 21
Key performance ratios:
Return on tangible equity
(1)(2)(3) 18.90% 19.21%
Return on equity (1)(3) 13.42 13.46
Return on assets (3) 1.01 1.03
Net interest margin (3) 4.17 4.12
Efficiency ratio 61.16 61.18
Dividend payout ratio 18.92 19.44
Equity to assets 7.46 7.65
Tangible equity to assets (2) 5.53 5.62
ASSET QUALITY
Allowance for loan losses $ 51,888 $ 49,873
Non-performing assets 13,565 13,495
Net charge-offs 1,385 1,380
Allowance for loan losses to loans 1.22% 1.22%
Non-performing assets to total
assets .24 .24
Net charge-offs to average loans (3) .13 .14
AVERAGE BALANCES
Loans $ 4,169,170 $ 3,942,077 19
Investment securities 1,008,687 996,096 4
Earning assets 5,239,195 4,986,339 15
Total assets 5,608,158 5,338,398 15
Deposits 4,078,437 3,853,884 26
Stockholders' equity 418,459 408,352 20
Common shares outstanding:
Basic 38,345 38,270
Diluted 39,670 39,436
AT PERIOD END
Loans $ 4,254,051 $ 4,072,811 18
Investment securities 945,922 990,500 (2)
Earning assets 5,302,532 5,161,067 14
Total assets 5,709,666 5,540,242 14
Deposits 4,196,369 3,959,226 26
Stockholders' equity 424,000 415,994 19
Common shares outstanding 38,383 38,283
(1) Net income available to common stockholders, 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 Six
Months Ended YTD
(in thousands, except per share ------------------------ 2006-2005
data; taxable equivalent) 2006 2005 Change
----------- ----------- ---------
INCOME SUMMARY
Interest revenue $ 214,525 $ 154,350
Interest expense 92,472 54,817
----------- -----------
Net interest revenue 122,053 99,533 23%
Provision for loan losses 7,200 5,200
Fee revenue 23,734 22,379 6
----------- -----------
Total revenue 138,587 116,712 19
Operating expenses 85,705 73,587 16
----------- -----------
Income before taxes 52,882 43,125 23
Income taxes 19,914 15,911
----------- -----------
Net income $ 32,968 $ 27,214 21
=========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .82 $ .71 15
Diluted earnings .80 .69 16
Cash dividends declared .16 .14 14
Book value 12.34 10.86 14
Tangible book value (2) 9.50 7.85 21
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.67% 19.52%
Return on equity (1)(3) 13.33 13.57
Return on assets (3) 1.10 1.04
Net interest margin (3) 4.34 4.09
Efficiency ratio 58.79 60.36
Dividend payout ratio 19.51 19.72
Equity to assets 7.99 7.68
Tangible equity to assets (2) 6.23 5.60
ASSET QUALITY
Allowance for loan losses $ 58,508 $ 49,873
Non-performing assets 8,805 13,495
Net charge-offs 2,287 2,523
Allowance for loan losses to loans 1.22% 1.22%
Non-performing assets to total
assets .14 .24
Net charge-offs to average loans (3) .10 .13
AVERAGE BALANCES
Loans $ 4,598,355 $ 3,870,177 19
Investment securities 1,039,198 971,283 7
Earning assets 5,667,213 4,903,610 16
Total assets 6,060,526 5,251,913 15
Deposits 4,728,731 3,786,276 25
Stockholders' equity 484,420 403,286 20
Common shares outstanding:
Basic 40,122 38,234
Diluted 41,259 39,412
AT PERIOD END
Loans $ 4,810,277 $ 4,072,811 18
Investment securities 974,524 990,500 (2)
Earning assets 5,862,614 5,161,067 14
Total assets 6,331,136 5,540,242 14
Deposits 4,976,650 3,959,226 26
Stockholders' equity 496,297 415,994 19
Common shares outstanding 40,179 38,283
(1) Net income available to common stockholders, 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
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
(in thousands, except per
share data) 2006 2005 2006 2005
---------- --------- --------- ---------
Interest revenue:
Loans, including fees $ 99,080 $ 69,446 $ 189,445 $ 132,913
Investment securities:
Taxable 11,521 10,190 22,839 19,204
Tax exempt 509 528 1,023 1,053
Federal funds sold and
deposits in banks 162 150 320 409
---------- --------- --------- ---------
Total interest revenue 111,272 80,314 213,627 153,579
---------- --------- --------- ---------
Interest expense:
Deposits:
Demand 8,956 4,379 16,143 7,906
Savings 226 174 454 342
Time 29,599 15,019 54,985 28,027
---------- --------- --------- ---------
Total deposit interest
expense 38,781 19,572 71,582 36,275
Federal funds purchased,
repurchase agreements, &
other short-term borrowings 2,078 1,121 3,554 2,006
Federal Home Loan Bank
advances 6,380 6,565 13,009 12,222
Long-term debt 2,168 2,192 4,327 4,314
---------- --------- --------- ---------
Total interest expense 49,407 29,450 92,472 54,817
---------- --------- --------- ---------
Net interest revenue 61,865 50,864 121,155 98,762
Provision for loan losses 3,700 2,800 7,200 5,200
---------- --------- --------- ---------
Net interest revenue after
provision for loan losses 58,165 48,064 113,955 93,562
---------- --------- --------- ---------
Fee revenue:
Service charges and fees 6,828 6,280 13,181 11,894
Mortgage loan and other
related fees 1,708 1,742 3,221 3,225
Consulting fees 1,572 1,685 3,156 3,167
Brokerage fees 796 768 1,646 1,210
Securities losses, net - (2) (3) (2)
Other 1,072 1,706 2,533 2,885
---------- --------- --------- ---------
Total fee revenue 11,976 12,179 23,734 22,379
---------- --------- --------- ---------
Total revenue 70,141 60,243 137,689 115,941
---------- --------- --------- ---------
Operating expenses:
Salaries and employee benefits 28,307 25,274 55,950 47,509
Communications and equipment 3,731 3,115 7,107 6,097
Occupancy 2,916 2,718 5,848 5,386
Advertising and public
relations 1,948 1,699 3,836 3,062
Postage, printing and supplies 1,289 1,369 2,805 2,720
Professional fees 1,069 1,071 2,230 2,109
Amortization of intangibles 503 503 1,006 1,006
Other 3,720 3,059 6,923 5,698
---------- --------- --------- ---------
Total operating expenses 43,483 38,808 85,705 73,587
---------- --------- --------- ---------
Income before income taxes 26,658 21,435 51,984 42,354
Income taxes 9,729 7,662 19,016 15,140
---------- --------- --------- ---------
Net income $ 16,929 $ 13,773 $ 32,968 $ 27,214
========== ========= ========= =========
Net income available to
common stockholders $ 16,924 $ 13,767 $ 32,958 $ 27,201
========== ========= ========= =========
Earnings per common share:
Basic $ .42 $ .36 $ .82 $ .71
Diluted .41 .35 .80 .69
Weighted average common shares
outstanding:
Basic 40,156 38,270 40,122 38,234
Diluted 41,328 39,436 41,259 39,412
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
June 30, December 31, June 30,
(in thousands, except share and per
share data) 2006 2005 2005
----------- ----------- -----------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 159,954 $ 121,963 $ 117,478
Interest-bearing deposits in
banks 21,948 20,607 17,451
----------- ----------- -----------
Cash and cash equivalents 181,902 142,570 134,929
Securities available for sale 974,524 990,687 990,500
Mortgage loans held for sale 24,000 22,335 34,095
Loans, net of unearned income 4,810,277 4,398,286 4,072,811
Less allowance for loan
losses 58,508 53,595 49,873
----------- ----------- -----------
Loans, net 4,751,769 4,344,691 4,022,938
Premises and equipment, net 124,018 112,887 105,469
Accrued interest receivable 44,187 37,197 31,909
Goodwill and other intangible
assets 117,646 118,651 119,617
Other assets 113,090 96,738 100,785
----------- ----------- -----------
Total assets $ 6,331,136 $ 5,865,756 $ 5,540,242
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 662,463 $ 602,525 $ 590,306
Interest-bearing demand 1,305,479 1,264,947 1,141,115
Savings 173,985 175,453 177,822
Time:
Less than $100,000 1,388,009 1,218,277 1,041,680
Greater than $100,000 1,106,359 895,466 696,941
Brokered 340,355 320,932 311,362
----------- ----------- -----------
Total deposits 4,976,650 4,477,600 3,959,226
Federal funds purchased,
repurchase agreements, &
other short-term borrowings 249,552 122,881 219,218
Federal Home Loan Bank advances 458,587 635,616 800,316
Long-term debt 111,869 111,869 111,869
Accrued expenses and other
liabilities 38,181 45,104 33,619
----------- ----------- -----------
Total liabilities 5,834,839 5,393,070 5,124,248
----------- ----------- -----------
Shareholders' equity:
Preferred stock, $1 par value;
$10 stated value; 10,000,000
shares authorized; 32,200, 32,200
and 37,200 shares issued
and outstanding 322 322 372
Common stock, $1 par value;
100,000,000 shares authorized;
40,178,533, 40,019,853 and
38,407,874 shares issued 40,179 40,020 38,408
Common stock issuable; 19,712
and 9,948 shares as of June
30, 2006 and December 31, 2005,
respectively 544 271 -
Capital surplus 197,235 193,355 154,480
Retained earnings 277,086 250,563 226,546
Treasury stock; 124,665 shares
as of June 30, 2005, at cost - - (2,517)
Accumulated other comprehensive
loss (19,069) (11,845) (1,295)
----------- ----------- -----------
Total shareholders' equity 496,297 472,686 415,994
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 6,331,136 $ 5,865,756 $ 5,540,242
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
--------------------------------------
2006
--------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
--------------------------------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 4,690,196 $ 98,965 8.46%
Taxable securities (3) 991,701 11,521 4.65
Tax-exempt securities (1) (3) 48,006 837 6.98
Federal funds sold and other
interest-earning assets 28,794 405 5.63
----------- ------------
Total interest-earning assets 5,758,697 111,728 7.78
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (57,654)
Cash and due from banks 129,389
Premises and equipment 120,870
Other assets (3) 207,850
-----------
Total assets $ 6,159,152
===========
Liabilities and Stockholders'Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,282,798 8,956 2.80
Savings deposits 174,533 226 .52
Time deposits less than $100,000
$100,000 1,344,861 14,066 4.20
Time deposits greater than
$100,000 1,061,249 12,147 4.59
Brokered deposits 327,962 3,386 4.14
----------- ------------
Total interest-bearing
deposits 4,191,403 38,781 3.71
----------- ------------
Federal funds purchased & other
borrowings 165,563 2,078 5.03
Federal Home Loan Bank advances 506,531 6,380 5.05
Long-term debt 111,869 2,168 7.77
----------- ------------
Total borrowed funds 783,963 10,626 5.44
----------- ------------
Total interest-bearing
liabilities 4,975,366 49,407 3.98
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 650,986
Other liabilities 42,979
-----------
Total liabilities 5,669,331
Stockholders' equity 489,821
-----------
Total liabilities
and stockholders' equity $ 6,159,152
===========
Net interest revenue $ 62,321
============
Net interest-rate spread 3.80%
===========
Net interest margin (4) 4.34%
===========
(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 tax rate and
the federal tax adjusted state 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 $21.6 million and $782,000 in 2006 and 2005,
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 June 30,
--------------------------------------
2005
--------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
--------------------------------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 3,942,077 $ 69,130 7.03 %
Taxable securities (3) 946,543 10,190 4.31
Tax-exempt securities (1) (3) 49,553 869 7.01
Federal funds sold and other
interest-earning assets 48,166 512 4.25
----------- ------------
Total interest-earning assets 4,986,339 80,701 6.49
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (49,576)
Cash and due from banks 94,488
Premises and equipment 103,439
Other assets (3) 203,708
-----------
Total assets $ 5,338,398
===========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,109,861 4,379 1.58
Savings deposits 176,624 174 .40
Time deposits less than
$100,000 1,025,236 7,307 2.86
Time deposits greater than
$100,000 661,214 5,515 3.35
Brokered deposits 311,933 2,197 2.83
----------- ------------
Total interest-bearing
deposits 3,284,868 19,572 2.39
----------- ------------
Federal funds purchased & other
borrowings 149,438 1,121 3.01
Federal Home Loan Bank advances 785,523 6,565 3.35
Long-term debt 111,868 2,192 7.86
----------- ------------
Total borrowed funds 1,046,829 9,878 3.78
----------- ------------
Total interest-bearing
liabilities 4,331,697 29,450 2.73
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 569,016
Other liabilities 29,333
-----------
Total liabilities 4,930,046
Stockholders' equity 408,352
-----------
Total liabilities
and stockholders' equity $ 5,338,398
===========
Net interest revenue $ 51,251
============
Net interest-rate spread 3.76 %
============
Net interest margin (4) 4.12 %
============
(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 tax rate and the
federal tax adjusted state 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 $21.6 million and $782,000 in 2006 and 2005,
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 Six Months Ended June 30,
--------------------------------------
2006
--------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
---------------------------------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 4,598,355 $ 189,219 8.30 %
Taxable securities (3) 990,698 22,839 4.61
Tax-exempt securities (1) (3) 48,500 1,683 6.94
Federal funds sold and other
interest-earning assets 29,660 784 5.29
----------- ------------
Total interest-earning
assets 5,667,213 214,525 7.63
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (56,247)
Cash and due from banks 125,957
Premises and equipment 118,245
Other assets (3) 205,358
-----------
Total assets $ 6,060,526
===========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,264,373 $ 16,143 2.57
Savings deposits 175,161 454 .52
Time deposits less than
$100,000 1,307,676 26,101 4.03
Time deposits greater than
$100,000 1,020,682 22,556 4.46
Brokered deposits 321,562 6,328 3.97
----------- ------------
Total interest-bearing
deposits 4,089,454 71,582 3.53
----------- ------------
Federal funds purchased & other
borrowings 147,185 3,554 4.87
Federal Home Loan Bank advances 546,405 13,009 4.80
Long-term debt 111,868 4,327 7.80
----------- ------------
Total borrowed funds 805,458 20,890 5.23
----------- ------------
Total interest-bearing
liabilities 4,894,912 92,472 3.81
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 639,276
Other liabilities 41,918
-----------
Total liabilities 5,576,106
Stockholders' equity 484,420
-----------
Total liabilities
and stockholders' equity $ 6,060,526
===========
Net interest revenue $ 122,053
============
Net interest-rate spread 3.82 %
============
Net interest margin (4) 4.34 %
============
(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 tax rate and the
federal tax adjusted state 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 $17.9 million in 2006 and pretax unrealized
gains of $1.1 million in 2005 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 Six Months Ended June 30,
--------------------------------------
2005
--------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
--------------------------------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 3,870,177 $ 132,266 6.89 %
Taxable securities (3) 921,564 19,204 4.17
Tax-exempt securities (1) (3) 49,719 1,733 6.97
Federal funds sold and other
interest-earning assets 62,150 1,147 3.69
----------- ------------
Total interest-earning assets 4,903,610 154,350 6.34
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (48,869)
Cash and due from banks 93,446
Premises and equipment 102,927
Other assets (3) 200,799
-----------
Total assets $ 5,251,913
===========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,092,181 $ 7,906 1.46
Savings deposits 175,033 342 .39
Time deposits less than
$100,000 1,010,395 13,769 2.75
Time deposits greater than
$100,000 626,918 9,884 3.18
Brokered deposits 329,396 4,374 2.68
----------- ------------
Total interest-bearing
deposits 3,233,923 36,275 2.26
----------- ------------
Federal funds purchased & other
borrowings 144,533 2,006 2.80
Federal Home Loan Bank advances 778,160 12,222 3.17
Long-term debt 111,868 4,314 7.78
----------- ------------
Total borrowed funds 1,034,561 18,542 3.61
----------- ------------
Total interest-bearing
liabilities 4,268,484 54,817 2.59
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 552,354
Other liabilities 27,789
-----------
Total liabilities 4,848,627
Stockholders' equity 403,286
-----------
Total liabilities
and stockholders' equity $ 5,251,913
===========
Net interest revenue $ 99,533
============
Net interest-rate spread 3.75 %
============
Net interest margin (4) 4.09 %
============
(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 tax rate and the
federal tax adjusted state 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 $17.9 million in 2006 and pretax unrealized
gains of $1.1 million in 2005 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) 781-2265 Contact via http://www.marketwire.com/mw/emailprcntct?id=BF142A391990280D
SOURCE: United Community Banks, Inc.