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United Community Banks, Inc. Reports Earnings of $9.9 Million for Fourth Quarter 2011
United Community Banks, Inc. Reports Earnings of $9.9 Million for Fourth Quarter 2011
Jan 25, 2012
- Net income of
$9.9 million , or12 cents per share - Loans stable with prior quarter, first time since
March 2008 - Core transaction deposits up
$266 million , or 10 percent, for the year - Nonperforming assets decline to
$160 million , or 2.3 percent of assets - New director appointed
The 2011 net loss of
"United is moving forward with a sound balance sheet and strong capital structure. This is beginning to be demonstrated in our financial results including the fourth quarter profit," stated
Total loans were
The fourth quarter provision for loan losses was
Net charge-offs for the fourth quarter were
"Nonperforming assets have been written down to levels that should allow for continued liquidation without significant losses," Tallent said. "Total nonperforming assets will continue to be impacted by our ability to liquidate foreclosed properties, and also could be affected by uneven levels of nonperforming loan inflows and charge-offs. Looking ahead, we expect our overall credit trends to improve during 2012, although not necessarily on a straight line."
Taxable equivalent net interest revenue of
"Loan and deposit growth are key for increasing core earnings," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans and recognizing this, we are gaining traction with the addition of seasoned lenders in key markets. We have had tremendous success attracting core transaction deposits -- increasing the balance by
Fee revenue was
Other fee revenue of
Excluding foreclosed property costs, fourth quarter 2011 operating expenses were
Foreclosed property costs for the fourth quarter of 2011 were
The income tax benefit for the fourth quarter included the release of
"Earlier this month we announced we would record a full valuation allowance for our net deferred tax asset, and that we would restate our previously filed financial reports going back to the fourth quarter of 2010," Tallent said. "This restatement results from an ongoing comment process with the
Tallent continued, "The full valuation allowance results from a difference in judgment regarding the weighting of evidence supporting our deferred tax asset. We are now placing more weight on the objective negative evidence represented by our recent cumulative losses rather than the more subjective positive evidence represented by our future earnings forecasts. Once we have achieved sustained profitability and improved credit performance such that the weighting of the evidence shifts, we would expect to be able to reverse the valuation allowance. At
As of
United also reported today that
"We are delighted to have Cliff join our board," Tallent said. "He has already been a valuable source for guidance and direction as a board observer over the past nine months, and we look forward to his counsel in an official capacity going forward."
Conference Call
United will hold a conference call tomorrow,
About
Headquartered in
Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the
UNITED COMMUNITY BANKS, INC. Financial Highlights Selected Financial Information 2011 2010 ---------------------------------------- --------- Fourth Third Second First Fourth Quarter Quarter Quarter Quarter Quarter (in thousands, except per share data; taxable equivalent) INCOME SUMMARY Interest revenue $ 71,905 $ 74,543 $ 76,931 $ 75,965 $ 81,215 Interest expense 12,855 15,262 17,985 19,573 21,083 -------- -------- -------- --------- --------- Net interest revenue 59,050 59,281 58,946 56,392 60,132 Operating provision for loan losses (1) 14,000 36,000 11,000 190,000 47,750 Fee revenue (2) 12,667 11,498 13,905 11,838 12,442 -------- -------- -------- --------- --------- Total operating revenue (1)(2) 57,717 34,779 61,851 (121,770) 24,824 Operating expenses (3) 51,080 46,520 48,728 115,271 64,918 Loss on sale of nonperforming assets - - - - - -------- -------- -------- --------- --------- Operating income (loss) from continuing operations before income taxes 6,637 (11,741) 13,123 (237,041) (40,094) Operating income tax expense (benefit) (3,264) (402) 1,095 295 144,760 -------- -------- -------- --------- --------- Net operating income (loss) from continuing operations (1)(2)(3) 9,901 (11,339) 12,028 (237,336) (184,854) Noncash goodwill impairment charges - - - - - Partial reversal of fraud loss provision - - - - 11,750 Loss from discontinued operations - - - - - Gain from sale of subsidiary - - - - - -------- -------- -------- --------- --------- Net income (loss) 9,901 (11,339) 12,028 (237,336) (173,104) Preferred dividends and discount accretion 3,025 3,019 3,016 2,778 2,586 -------- -------- -------- --------- --------- Net income (loss) available to common shareholders $ 6,876 $(14,358) $ 9,012 $(240,114) $(175,690) ======== ======== ======== ========= ========= PERFORMANCE MEASURES Per common share: Diluted operating income (loss) from continuing operations (1)(2)(3) $ .12 $ (.25) $ .16 $ (13.00) $ (9.87) Diluted income (loss) from continuing operations .12 (.25) .16 (13.00) (9.25) Diluted income (loss) .12 (.25) .16 (13.00) (9.25) Book value 6.62 6.77 7.11 2.20 15.40 Tangible book value (5) 6.47 6.61 6.94 1.69 14.80 Key performance ratios: Return on equity (4)(6) 7.40% (15.06)% 42.60% (526.54)% (196.10)% Return on assets (6) .56 (.64) .66 (13.04) (9.47) Net interest margin (6) 3.51 3.55 3.41 3.30 3.58 Operating efficiency ratio from continuing operations (2)(3) 71.23 65.73 66.88 169.08 89.45 Equity to assets 8.28 8.55 8.06 6.15 7.80 Tangible equity to assets (5) 8.16 8.42 7.93 6.01 7.64 Tangible common equity to assets (5) 5.38 5.65 1.37 2.70 5.22 Tangible common equity to risk- weighted assets (5) 8.22 8.52 8.69 .75 5.64 ASSET QUALITY * Non-performing loans $127,479 $144,484 $ 71,065 $ 83,769 $ 179,094 Foreclosed properties 32,859 44,263 47,584 54,378 142,208 -------- -------- -------- --------- --------- Total non- performing assets (NPAs) 160,338 188,747 118,649 138,147 321,302 Allowance for loan losses 114,468 146,092 127,638 133,121 174,695 Operating net charge-offs (1) 45,624 17,546 16,483 231,574 47,668 Allowance for loan losses to loans 2.79% 3.55% 3.07% 3.17% 3.79% Operating net charge-offs to average loans (1)(6) 4.39 1.68 1.58 20.71 4.03 NPAs to loans and foreclosed properties 3.87 4.54 2.82 3.25 6.77 NPAs to total assets 2.30 2.74 1.66 1.79 4.42 AVERAGE BALANCES ($ in millions) Loans $ 4,175 $ 4,194 $ 4,266 $ 4,599 $ 4,768 Investment securities 2,141 2,150 2,074 1,625 1,354 Earning assets 6,688 6,630 6,924 6,902 6,680 Total assets 7,019 7,000 7,363 7,379 7,254 Deposits 6,115 6,061 6,372 6,560 6,294 Shareholders' equity 581 598 594 454 566 Common shares - basic (thousands) 57,646 57,599 25,427 18,466 18,984 Common shares - diluted (thousands) 57,646 57,599 57,543 18,466 18,984 AT PERIOD END ($ in millions) Loans * $ 4,110 $ 4,110 $ 4,163 $ 4,194 $ 4,604 Investment securities 2,120 2,123 2,188 1,884 1,490 Total assets 6,983 6,894 7,152 7,709 7,276 Deposits 6,098 6,005 6,183 6,598 6,469 Shareholders' equity 575 583 603 586 469 Common shares outstanding (thousands) 57,561 57,510 57,469 20,903 18,937 (1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of$11.8 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 ----------- ----------- ---------- Fourth 2011 2010 Quarter ----------- ----------- Fourth Fourth Quarter Quarter 2011-2010 (in thousands, except per share data; taxable equivalent) Change ----------- ----------- ---------- INCOME SUMMARY Interest revenue $ 71,905 $ 81,215 Interest expense 12,855 21,083 ----------- ----------- Net interest revenue 59,050 60,132 (2)% Operating provision for loan losses (1) 14,000 47,750 Fee revenue (2) 12,667 12,442 2 ----------- ----------- Total operating revenue (1)(2) 57,717 24,824 Operating expenses (3) 51,080 64,918 (21) Loss on sale of nonperforming assets - - ----------- ----------- Operating income (loss) from continuing operations before income taxes 6,637 (40,094) Operating income tax expense (benefit) (3,264) 144,760 ----------- ----------- Net operating income (loss) from continuing operations(1)(2)(3) 9,901 (184,854) Noncash goodwill impairment charges - - Partial reversal of fraud loss provision - 11,750 Loss from discontinued operations - - Gain from sale of subsidiary - - ----------- ----------- Net income (loss) 9,901 (173,104) Preferred dividends and discount accretion 3,025 2,586 ----------- ----------- Net income (loss) available to common shareholders $ 6,876 $ (175,690) =========== =========== PERFORMANCE MEASURES Per common share: Diluted operating income (loss) from continuing operations (1)(2)(3) $ .12 $ (9.87) Diluted income (loss) from continuing operations .12 (9.25) Diluted income (loss) .12 (9.25) Book value 6.62 15.40 (57) Tangible book value (5) 6.47 14.80 (56) Key performance ratios: Return on equity (4)(6) 7.40% (196.10)% Return on assets (6) .56 (9.47) Net interest margin (6) 3.51 3.58 Operating efficiency ratio from continuing operations (2)(3) 71.23 89.45 Equity to assets 8.28 7.80 Tangible equity to assets (5) 8.16 7.64 Tangible common equity to assets (5) 5.38 5.22 Tangible common equity to risk- weighted assets (5) 8.22 5.64 ASSET QUALITY * Non-performing loans $ 127,479 $ 179,094 Foreclosed properties 32,859 142,208 ----------- ----------- Total non-performing assets (NPAs) 160,338 321,302 Allowance for loan losses 114,468 174,695 Operating net charge-offs (1) 45,624 47,668 Allowance for loan losses to loans 2.79% 3.79% Operating net charge-offs to average loans (1)(6) 4.39 4.03 NPAs to loans and foreclosed properties 3.87 6.77 NPAs to total assets 2.30 4.42 AVERAGE BALANCES ($ in millions) Loans $ 4,175 $ 4,768 (12) Investment securities 2,141 1,354 58 Earning assets 6,688 6,680 - Total assets 7,019 7,254 (3) Deposits 6,115 6,294 (3) Shareholders' equity 581 566 3 Common shares - basic (thousands) 57,646 18,984 Common shares - diluted (thousands) 57,646 18,984 AT PERIOD END ($ in millions) Loans * $ 4,110 $ 4,604 (11) Investment securities 2,120 1,490 42 Total assets 6,983 7,276 (4) Deposits 6,098 6,469 (6) Shareholders' equity 575 469 23 Common shares outstanding (thousands) 57,561 18,937 (1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of$11.8 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 YTD For the Twelve 2011-2010 Months Ended Change (in thousands, except per share data; taxable equivalent) 2011 2010 ----------- ----------- ---------- INCOME SUMMARY Interest revenue $ 299,344 $ 343,123 Interest expense 65,675 100,071 ----------- ----------- Net interest revenue 233,669 243,052 (4)% Operating provision for loan losses (1) 251,000 234,750 Fee revenue (2) 49,908 48,548 3 ----------- ----------- Total operating revenue (1)(2) 32,577 56,850 Operating expenses (3) 261,599 242,952 8 Loss on sale of nonperforming assets - 45,349 ----------- ----------- Operating income (loss) from continuing operations before income taxes (229,022) (231,451) Operating income tax expense (benefit) (2,276) 73,218 ----------- ----------- Net operating income (loss) from continuing operations (1)(2)(3) (226,746) (304,669) Noncash goodwill impairment charges - (210,590) Partial reversal of fraud loss provision - 11,750 Loss from discontinued operations - (101) Gain from sale of subsidiary - 1,266 ----------- ----------- Net income (loss) (226,746) (502,344) Preferred dividends and discount accretion 11,838 10,316 ----------- ----------- Net income (loss) available to common shareholders $ (238,584) $ (512,660) =========== =========== PERFORMANCE MEASURES Per common share: Diluted operating income (loss) from continuing operations (1)(2)(3) $ (5.97) $ (16.64) Diluted income (loss) from continuing operations (5.97) (27.15) Diluted income (loss) (5.97) (27.09) Book value 6.62 15.40 (57) Tangible book value (5) 6.47 14.80 (56) Key performance ratios: Return on equity (4)(6) (93.57)% (85.08)% Return on assets (6) (3.15) (6.61) Net interest margin (6) 3.44 3.56 Operating efficiency ratio from continuing operations (2)(3) 92.27 98.98 Equity to assets 7.75 10.77 Tangible equity to assets (5) 7.62 8.88 Tangible common equity to assets (5) 3.74 6.52 Tangible common equity to risk- weighted assets (5) 8.22 5.64 ASSET QUALITY * Non-performing loans $ 127,479 $ 179,094 Foreclosed properties 32,859 142,208 ----------- ----------- Total non-performing assets (NPAs) 160,338 321,302 Allowance for loan losses 114,468 174,695 Operating net charge-offs (1) 311,227 215,657 Allowance for loan losses to loans 2.79% 3.79% Operating net charge-offs to average loans (1)(6) 7.33 4.42 NPAs to loans and foreclosed properties 3.87 6.77 NPAs to total assets 2.30 4.42 AVERAGE BALANCES ($ in millions) Loans $ 4,307 $ 4,961 (13) Investment securities 1,999 1,453 38 Earning assets 6,785 6,822 (1) Total assets 7,189 7,605 (5) Deposits 6,275 6,373 (2) Shareholders' equity 557 819 (32) Common shares - basic (thousands) 39,943 18,925 Common shares - diluted (thousands) 39,943 18,925 AT PERIOD END ($ in millions) Loans * $ 4,110 $ 4,604 (11) Investment securities 2,120 1,490 42 Total assets 6,983 7,276 (4) Deposits 6,098 6,469 (6) Shareholders' equity 575 469 23 Common shares outstanding (thousands) 57,561 18,937 (1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of$11.8 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. Selected Financial Information For the Years EndedDecember 31 , (in thousands, except per share data; taxable equivalent) 2011 2010 2009 2008 2007 ---------- ---------- ---------- ---------- ---------- INCOME SUMMARY Net interest revenue $ 233,669 $ 243,052 $ 245,227 $ 238,704 $ 274,483 Operating provision for loan losses (1) 251,000 234,750 310,000 184,000 37,600 Operating fee revenue (2) 49,908 48,548 50,964 46,081 53,701 ---------- ---------- ---------- ---------- ---------- Total operating revenue (1)(2) 32,577 56,850 (13,809) 100,785 290,584 Operating expenses (3) 261,599 242,952 217,050 200,335 181,730 Loss on sale of nonperforming assets - 45,349 - - - ---------- ---------- ---------- ---------- ---------- Operating (loss) income from continuing operations before taxes (229,022) (231,451) (230,859) (99,550) 108,854 Operating income taxes (2,276) 73,218 (91,754) (35,651) 40,266 ---------- ---------- ---------- ---------- ---------- Net operating (loss) income from continuing operations (226,746) (304,669) (139,105) (63,899) 68,588 Gain from acquisition, net of tax - - 7,062 - - Noncash goodwill impairment charges - (210,590) (95,000) - - Severance cost, net of tax benefit - - (1,797) - - Fraud loss provision and subsequent recovery, net of tax benefit - 11,750 - - (10,998) Net (loss) income from discontinued operations - (101) 513 449 403 Gain from sale of subsidiary, net of income taxes and selling costs - 1,266 - - - ---------- ---------- ---------- ---------- ---------- Net (loss) income (226,746) (502,344) (228,327) (63,450) 57,993 Preferred dividends and discount accretion 11,838 10,316 10,242 724 18 ---------- ---------- ---------- ---------- ---------- Net (loss) income available to common shareholders $ (238,584) $ (512,660) $ (238,569) $ (64,174) $ 57,975 ========== ========== ========== ========== ========== PERFORMANCE MEASURES Per common share: Diluted operating (loss) earnings from continuing operations (1)(2)(3) $ (5.97) $ (16.64) $ (12.37) $ (6.82) $ 7.36 Diluted (loss) earnings from continuing operations (5.97) (27.15) (19.80) (6.82) 6.18 Diluted (loss) earnings (5.97) (27.09) (19.76) (6.77) 6.22 Cash dividends declared (rounded) - - - .87 1.73 Stock dividends declared (6) - - 3 for 130 2 for 130 - Book value 6.62 15.40 41.78 84.75 88.52 Tangible book value (5) 6.47 14.80 30.09 51.93 54.62 Key performance ratios: Return on equity (4) (93.57)% (85.08)% (34.40)% (7.82)% 7.79% Return on assets (3.15) (6.61) (2.76) (.76) .75 Net interest margin 3.44 3.56 3.29 3.18 3.88 Operating efficiency ratio from continuing operations (2)(3) 92.27 98.98 73.97 70.00 55.53 Equity to assets 7.75 10.77 11.12 10.22 9.61 Tangible equity to assets (5) 7.62 8.88 8.33 6.67 6.63 Tangible common equity to assets (5) 3.74 6.52 6.15 6.57 6.63 Tangible common equity to risk-weighted assets (5) 8.22 5.64 10.39 8.34 8.21 ASSET QUALITY * Non-performing loans $ 127,479 $ 179,094 $ 264,092 $ 190,723 $ 28,219 Foreclosed properties 32,859 142,208 120,770 59,768 18,039 ---------- ---------- ---------- ---------- ---------- Total non- performing assets (NPAs) 160,338 321,302 384,862 250,491 46,258 Allowance for loan losses 114,468 174,695 155,602 122,271 89,423 Operating net charge-offs (1) 311,227 215,657 276,669 151,152 21,834 Allowance for loan losses to loans 2.79% 3.79% 3.02% 2.14% 1.51% Operating net charge-offs to average loans (1) 7.33 4.42 5.03 2.57 .38 NPAs to loans and foreclosed properties 3.87 6.77 7.30 4.35 .78 NPAs to total assets 2.30 4.42 4.81 2.92 .56 AVERAGE BALANCES ($ in millions) Loans $ 4,307 $ 4,961 $ 5,548 $ 5,891 $ 5,735 Investment securities 1,999 1,453 1,656 1,489 1,278 Earning assets 6,785 6,822 7,465 7,504 7,071 Total assets 7,189 7,605 8,269 8,319 7,731 Deposits 6,275 6,373 6,713 6,524 6,029 Shareholders' equity 557 819 920 850 743 Common shares - Basic (thousands) 39,943 18,925 12,075 9,474 9,190 Common shares - Diluted (thousands) 39,943 18,925 12,075 9,474 9,319 AT YEAR END ($ in millions) Loans * $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929 Investment securities 2,120 1,490 1,530 1,617 1,357 Total assets 6,983 7,276 8,000 8,592 8,207 Deposits 6,098 6,469 6,628 7,004 6,076 Shareholders' equity 575 469 962 989 832 Common shares outstanding (thousands) 57,561 18,937 18,809 9,602 9,381 (1) Excludes pre-tax provision for fraud-related loan losses and related charge-offs of$18 million , net of income tax benefit of$7 million in 2007 and subsequent recovery of$11.8 million in 2010. (2) Excludes the gain from acquisition of$11.4 million , net of income tax expense of$4.3 million in 2009. (3) Excludes the goodwill impairment charges of$211 million and$95 million in 2010 and 2009, respectively, and severance costs of$2.9 million , net of income tax benefit of$1.1 million in 2009. (4) Net (loss) income 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) Number of new shares issued for shares currently held. * 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 ------------------------------------------ --------- Fourth Third Second First Fourth Quarter Quarter Quarter Quarter Quarter (in thousands, except per share data; taxable equivalent) Interest revenue reconciliation Interest revenue - taxable equivalent $ 71,905 $ 74,543 $ 76,931 $ 75,965 $ 81,215 Taxable equivalent adjustment (423) (420) (429) (435) (497) --------- --------- --------- --------- --------- Interest revenue (GAAP) $ 71,482 $ 74,123 $ 76,502 $ 75,530 $ 80,718 ========= ========= ========= ========= ========= Net interest revenue reconciliation Net interest revenue - taxable equivalent $ 59,050 $ 59,281 $ 58,946 $ 56,392 $ 60,132 Taxable equivalent adjustment (423) (420) (429) (435) (497) --------- --------- --------- --------- --------- Net interest revenue (GAAP) $ 58,627 $ 58,861 $ 58,517 $ 55,957 $ 59,635 ========= ========= ========= ========= ========= Provision for loan losses reconciliation Operating provision for loan losses $ 14,000 $ 36,000 $ 11,000 $ 190,000 $ 47,750 Provision for special fraud-related loan loss and partial recovery - - - - (11,750) --------- --------- --------- --------- --------- Provision for loan losses (GAAP) $ 14,000 $ 36,000 $ 11,000 $ 190,000 $ 36,000 ========= ========= ========= ========= ========= Fee revenue reconciliation Operating fee revenue $ 12,667 $ 11,498 $ 13,905 $ 11,838 $ 12,442 Gain from acquisition - - - - - --------- --------- --------- --------- --------- Fee revenue (GAAP) $ 12,667 $ 11,498 $ 13,905 $ 11,838 $ 12,442 ========= ========= ========= ========= ========= Total revenue reconciliation Total operating revenue $ 57,717 $ 34,779 $ 61,851 $(121,770) $ 24,824 Taxable equivalent adjustment (423) (420) (429) (435) (497) Gain from acquisition - - - - - Provision for special fraud-related loan loss and partial recovery - - - - 11,750 --------- --------- --------- --------- --------- Total revenue (GAAP) $ 57,294 $ 34,359 $ 61,422 $(122,205) $ 36,077 ========= ========= ========= ========= ========= Expense reconciliation Operating expense $ 51,080 $ 46,520 $ 48,728 $ 115,271 $ 64,918 Noncash goodwill impairment charge - - - - - Severance costs - - - - - --------- --------- --------- --------- --------- Operating expense (GAAP) $ 51,080 $ 46,520 $ 48,728 $ 115,271 $ 64,918 ========= ========= ========= ========= ========= Income (loss) from continuing operations before taxes reconciliation Operating income (loss) from continuing operations before taxes $ 6,637 $ (11,741) $ 13,123 $(237,041) $ (40,094) Taxable equivalent adjustment (423) (420) (429) (435) (497) Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - Provision for special fraud-related loan loss and partial recovery - - - - 11,750 --------- --------- --------- --------- --------- Income (loss) from continuing operations before taxes (GAAP) $ 6,214 $ (12,161) $ 12,694 $(237,476) $ (28,841) ========= ========= ========= ========= ========= Income tax (benefit) expense reconciliation Operating income tax (benefit) expense $ (3,264) $ (402) $ 1,095 $ 295 $ 144,760 Taxable equivalent adjustment (423) (420) (429) (435) (497) Gain from acquisition, tax expense - - - - - Severance costs, tax benefit - - - - - Provision for special fraud-related loan loss tax benefit - - - - - --------- --------- --------- --------- --------- Income tax (benefit) expense (GAAP) $ (3,687) $ (822) $ 666 $ (140) $ 144,263 ========= ========= ========= ========= ========= Diluted earnings (loss) from continuing operations per common share reconciliation Diluted operating earnings (loss) from continuing operations per common share $ .12 $ (.25) $ .16 $ (13.00) $ (9.87) Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - Provision for special fraud-related loan loss and partial recovery - - - - .62 --------- --------- --------- --------- --------- Diluted earnings (loss) from continuing operations per common share (GAAP) $ .12 $ (.25) $ .16 $ (13.00) $ (9.25) ========= ========= ========= ========= ========= Book value per common share reconciliation Tangible book value per common share $ 6.47 $ 6.61 $ 6.94 $ 1.69 $ 14.80 Effect of goodwill and other intangibles .15 .16 .17 .51 .60 --------- --------- --------- --------- --------- Book value per common share (GAAP) $ 6.62 $ 6.77 $ 7.11 $ 2.20 $ 15.40 ========= ========= ========= ========= ========= Efficiency ratio from continuing operations reconciliation Operating efficiency ratio from continuing operations 71.23% 65.73% 66.88% 169.08% 89.45% Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - --------- --------- --------- --------- --------- Efficiency ratio from continuing operations (GAAP) 71.23% 65.73% 66.88% 169.08% 89.45% ========= ========= ========= ========= ========= Average equity to assets reconciliation Tangible common equity to assets 5.38% 5.65% 1.37% 2.70% 5.22% Effect of preferred equity 2.78 2.77 6.56 3.31 2.42 --------- --------- --------- --------- --------- Tangible equity to assets 8.16 8.42 7.93 6.01 7.64 Effect of goodwill and other intangibles .12 .13 .13 .14 .16 --------- --------- --------- --------- --------- Equity to assets (GAAP) 8.28% 8.55% 8.06% 6.15% 7.80% ========= ========= ========= ========= ========= Actual tangible common equity to risk-weighted assets reconciliation Tangible common equity to risk- weighted assets 8.22% 8.52% 8.69% .75% 5.64% Effect of other comprehensive income (.03) (.29) (.42) (.32) (.42) Effect of deferred tax limitation - - - - - Effect of trust preferred 1.18 1.19 1.15 1.13 1.06 Effect of preferred equity 4.27 4.33 4.20 5.87 3.53 --------- --------- --------- --------- --------- Tier I capital ratio (Regulatory) 13.64% 13.75% 13.62% 7.43% 9.81% ========= ========= ========= ========= ========= Net charge-offs reconciliation Operating net charge- offs $ 45,624 $ 17,546 $ 16,483 $ 231,574 $ 47,668 Subsequent partial recovery of fraud- related charge-off - - - - (11,750) --------- --------- --------- --------- --------- Net charge-offs (GAAP) $ 45,624 $ 17,546 $ 16,483 $ 231,574 $ 35,918 ========= ========= ========= ========= ========= Net charge-offs to average loans reconciliation Operating net charge- offs to average loans 4.39% 1.68% 1.58% 20.71% 4.03% Subsequent partial recovery of fraud- related charge-off - - - - (1.00) --------- --------- --------- --------- --------- Net charge-offs to average loans (GAAP) 4.39% 1.68% 1.58% 20.71% 3.03% ========= ========= ========= ========= =========
UNITED COMMUNITY BANKS, INC. Operating Earnings to GAAP Earnings Reconciliation Selected Financial Information For the Twelve Months Ended ----------------------------------------------------- (in thousands, except per share data; taxable equivalent) 2011 2010 2009 2008 2007 --------- --------- --------- --------- --------- Interest revenue reconciliation Interest revenue - taxable equivalent $ 299,344 $ 343,123 $ 404,961 $ 466,969 $ 550,917 Taxable equivalent adjustment (1,707) (2,001) (2,132) (2,261) (1,881) --------- --------- --------- --------- --------- Interest revenue (GAAP) $ 297,637 $ 341,122 $ 402,829 $ 464,708 $ 549,036 ========= ========= ========= ========= ========= Net interest revenue reconciliation Net interest revenue - taxable equivalent $ 233,669 $ 243,052 $ 245,227 $ 238,704 $ 274,483 Taxable equivalent adjustment (1,707) (2,001) (2,132) (2,261) (1,881) --------- --------- --------- --------- --------- Net interest revenue (GAAP) $ 231,962 $ 241,051 $ 243,095 $ 236,443 $ 272,602 ========= ========= ========= ========= ========= Provision for loan losses reconciliation Operating provision for loan losses $ 251,000 $ 234,750 $ 310,000 $ 184,000 $ 37,600 Provision for special fraud-related loan loss and partial recovery - (11,750) - - 18,000 --------- --------- --------- --------- --------- Provision for loan losses (GAAP) $ 251,000 $ 223,000 $ 310,000 $ 184,000 $ 55,600 ========= ========= ========= ========= ========= Fee revenue reconciliation Operating fee revenue $ 49,908 $ 48,548 $ 50,964 $ 46,081 $ 53,701 Gain from acquisition - - 11,390 - - --------- --------- --------- --------- --------- Fee revenue (GAAP) $ 49,908 $ 48,548 $ 62,354 $ 46,081 $ 53,701 ========= ========= ========= ========= ========= Total revenue reconciliation Total operating revenue $ 32,577 $ 56,850 $ (13,809) $ 100,785 $ 290,584 Taxable equivalent adjustment (1,707) (2,001) (2,132) (2,261) (1,881) Gain from acquisition - - 11,390 - - Provision for special fraud-related loan loss and partial recovery - 11,750 - - (18,000) --------- --------- --------- --------- --------- Total revenue (GAAP) $ 30,870 $ 66,599 $ (4,551) $ 98,524 $ 270,703 ========= ========= ========= ========= ========= Expense reconciliation Operating expense $ 261,599 $ 288,301 $ 217,050 $ 200,335 $ 181,730 Noncash goodwill impairment charge - 210,590 95,000 - - Severance costs - - 2,898 - - --------- --------- --------- --------- --------- Operating expense (GAAP) $ 261,599 $ 498,891 $ 314,948 $ 200,335 $ 181,730 ========= ========= ========= ========= ========= Income (loss) from continuing operations before taxes reconciliation Operating income (loss) from continuing operations before taxes $(229,022) $(231,451) $(230,859) $ (99,550) $ 108,854 Taxable equivalent adjustment (1,707) (2,001) (2,132) (2,261) (1,881) Gain from acquisition - - 11,390 - - Noncash goodwill impairment charge - (210,590) (95,000) - - Severance costs - - (2,898) - - Provision for special fraud-related loan loss and partial recovery - 11,750 - - (18,000) --------- --------- --------- --------- --------- Income (loss) from continuing operations before taxes (GAAP) $(230,729) $(432,292) $(319,499) $(101,811) $ 88,973 ========= ========= ========= ========= ========= Income tax (benefit) expense reconciliation Operating income tax (benefit) expense $ (2,276) $ 73,218 $ (91,754) $ (35,651) $ 40,266 Taxable equivalent adjustment (1,707) (2,001) (2,132) (2,261) (1,881) Gain from acquisition, tax expense - - 4,328 - - Severance costs, tax benefit - - (1,101) - - Provision for special fraud-related loan loss tax benefit - - - - (7,002) --------- --------- --------- --------- --------- Income tax (benefit) expense (GAAP) $ (3,983) $ 71,217 $ (90,659) $ (37,912) $ 31,383 ========= ========= ========= ========= ========= Diluted earnings (loss) from continuing operations per common share reconciliation Diluted operating earnings (loss) from continuing operations per common share $ (5.97) $ (16.64) $ (12.37) $ (6.82) $ 7.36 Gain from acquisition - - .58 - - Noncash goodwill impairment charge - (11.13) (7.86) - - Severance costs - - (.15) - - Provision for special fraud-related loan loss and partial recovery - .62 - - (1.18) --------- --------- --------- --------- --------- Diluted earnings (loss) from continuing operations per common share (GAAP) $ (5.97) $ (27.15) $ (19.80) $ (6.82) $ 6.18 ========= ========= ========= ========= ========= Book value per common share reconciliation Tangible book value per common share $ 6.47 $ 14.80 $ 30.09 $ 51.93 $ 54.62 Effect of goodwill and other intangibles .15 .60 11.69 32.82 33.90 --------- --------- --------- --------- --------- Book value per common share (GAAP) $ 6.62 $ 15.40 $ 41.78 $ 84.75 $ 88.52 ========= ========= ========= ========= ========= Efficiency ratio from continuing operations reconciliation Operating efficiency ratio from continuing operations 97.27% 98.98% 73.97% 70.00% 55.53% Gain from acquisition - - (2.77) - - Noncash goodwill impairment charge - 72.29 31.17 - - Severance costs - - .95 - - --------- --------- --------- --------- --------- Efficiency ratio from continuing operations (GAAP) 97.27% 171.27% 103.32% 70.00% 55.53% ========= ========= ========= ========= ========= Average equity to assets reconciliation Tangible common equity to assets 3.74% 6.52% 6.15% 6.57% 6.63% Effect of preferred equity 3.88 2.36 2.18 .10 - --------- --------- --------- --------- --------- Tangible equity to assets 7.62 8.88 8.33 6.67 6.63 Effect of goodwill and other intangibles .13 1.89 2.79 3.55 2.98 --------- --------- --------- --------- --------- Equity to assets (GAAP) 7.75% 10.77% 11.12% 10.22% 9.61% ========= ========= ========= ========= ========= Actual tangible common equity to risk-weighted assets reconciliation Tangible common equity to risk- weighted assets 8.22% 5.64% 10.39% 8.34% 8.21% Effect of other comprehensive income (.03) (.42) (.87) (.91) (.23) Effect of deferred tax limitation - - (1.27) - - Effect of trust preferred 1.18 1.06 .97 .88 .65 Effect of preferred equity 4.27 3.53 3.19 2.90 - --------- --------- --------- --------- --------- Tier I capital ratio (Regulatory) 13.64% 9.81% 12.41% 11.21% 8.63% ========= ========= ========= ========= ========= Net charge-offs reconciliation Operating net charge- offs $ 311,227 $ 215,657 $ 276,669 $ 151,152 $ 21,834 Subsequent partial recovery of fraud- related charge-off - (11,750) - - 18,000 --------- --------- --------- --------- --------- Net charge-offs (GAAP) $ 311,227 $ 203,907 $ 276,669 $ 151,152 $ 39,834 ========= ========= ========= ========= ========= Net charge-offs to average loans reconciliation Operating net charge- offs to average loans 4.39% 4.42% 5.03% 2.57% .38% Subsequent partial recovery of fraud- related charge-off - (.25) - - .31 --------- --------- --------- --------- --------- Net charge-offs to average loans (GAAP) 4.39% 4.17% 5.03% 2.57% .69% ========= ========= ========= ========= =========
UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) 2011 2010 --------------------------------------- --------- Fourth Third Second First Fourth (in millions) Quarter Quarter Quarter Quarter Quarter --------- --------- --------- --------- --------- LOANS BY CATEGORY Commercial (sec. by RE) $ 1,822 $ 1,771 $ 1,742 $ 1,692 $ 1,761 Commercial construction 164 169 195 213 297 Commercial & industrial 428 429 428 431 441 --------- --------- --------- --------- --------- Total commercial 2,414 2,369 2,365 2,336 2,499 Residential construction 448 474 502 550 695 Residential mortgage 1,135 1,150 1,177 1,187 1,279 Consumer / installment 113 117 119 121 131 --------- --------- --------- --------- --------- Total loans $ 4,110 $ 4,110 $ 4,163 $ 4,194 $ 4,604 ========= ========= ========= ========= ========= LOANS BY MARKET Atlanta MSA $ 1,220 $ 1,192 $ 1,188 $ 1,179 $ 1,310 Gainesville MSA 265 272 275 282 312 North Georgia 1,426 1,478 1,500 1,531 1,689 Western North Carolina 597 607 626 640 702 Coastal Georgia 346 316 325 312 335 East Tennessee 256 245 249 250 256 --------- --------- --------- --------- --------- Total loans $ 4,110 $ 4,110 $ 4,163 $ 4,194 $ 4,604 ========= ========= ========= ========= ========= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 88 $ 97 $ 105 $ 116 $ 174 Land loans 61 60 62 69 99 Lot loans 207 216 218 228 275 --------- --------- --------- --------- --------- Total 356 373 385 413 548 --------- --------- --------- --------- --------- House loans Spec 59 64 74 88 97 Sold 33 37 43 49 50 --------- --------- --------- --------- --------- Total 92 101 117 137 147 --------- --------- --------- --------- --------- Total residential construction $ 448 $ 474 $ 502 $ 550 $ 695 ========= ========= ========= ========= ========= RESIDENTIAL CONSTRUCTION - ATLANTA MSA Dirt loans Acquisition & development $ 17 $ 19 $ 20 $ 22 $ 30 Land loans 14 15 16 19 23 Lot loans 22 22 22 24 32 --------- --------- --------- --------- --------- Total 53 56 58 65 85 --------- --------- --------- --------- --------- House loans Spec 27 28 30 34 38 Sold 6 8 9 11 10 --------- --------- --------- --------- --------- Total 33 36 39 45 48 --------- --------- --------- --------- --------- Total residential construction $ 86 $ 92 $ 97 $ 110 $ 133 ========= ========= ========= ========= ========= (1) Excludes total loans of$54.5 million ,$57.8 million ,$70.8 million ,$63.3 million and$68.2 million as ofDecember 31, 2011 ,September 30, 2011 ,June 30, 2011 ,March 31, 2011 andDecember 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 Linked Year over ------------------- --------- Fourth Third Fourth Quarter Year (in millions) Quarter Quarter Quarter Change Change --------- --------- --------- --------- --------- LOANS BY CATEGORY Commercial (sec.by RE) $ 1,822 $ 1,771 $ 1,761 $ 51 $ 61 Commercial construction 164 169 297 (5) (133) Commercial & industrial 428 429 441 (1) (13) --------- --------- --------- Total commercial 2,414 2,369 2,499 45 (85) Residential construction 448 474 695 (26) (247) Residential mortgage 1,135 1,150 1,279 (15) (144) Consumer / installment 113 117 131 (4) (18) --------- --------- --------- Total loans $ 4,110 $ 4,110 $ 4,604 - (494) ========= ========= ========= LOANS BY MARKET Atlanta MSA $ 1,220 $ 1,192 $ 1,310 28 (90) Gainesville MSA 265 272 312 (7) (47) North Georgia 1,426 1,478 1,689 (52) (263) Western North Carolina 597 607 702 (10) (105) Coastal Georgia 346 316 335 30 11 East Tennessee 256 245 256 11 - --------- --------- --------- Total loans $ 4,110 $ 4,110 $ 4,604 - (494) ========= ========= ========= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 88 $ 97 $ 174 (9) (86) Land loans 61 60 99 1 (38) Lot loans 207 216 275 (9) (68) --------- --------- --------- Total 356 373 548 (17) (192) --------- --------- --------- House loans Spec 59 64 97 (5) (38) Sold 33 37 50 (4) (17) --------- --------- --------- Total 92 101 147 (9) (55) --------- --------- --------- Total residential construction $ 448 $ 474 $ 695 (26) (247) ========= ========= ========= RESIDENTIAL CONSTRUCTION - ATLANTA MSA Dirt loans Acquisition & development $ 17 $ 19 $ 30 (2) (13) Land loans 14 15 23 (1) (9) Lot loans 22 22 32 - (10) --------- --------- --------- Total 53 56 85 (3) (32) --------- --------- --------- House loans Spec 27 28 38 (1) (11) Sold 6 8 10 (2) (4) --------- --------- --------- Total 33 36 48 (3) (15) --------- --------- --------- Total residential construction $ 86 $ 92 $ 133 (6) (47) ========= ========= ========= (1) Excludes total loans of$54.5 million ,$57.8 million ,$70.8 million ,$63.3 million and$68.2 million as ofDecember 31, 2011 ,September 30, 2011 ,June 30, 2011 ,March 31, 2011 andDecember 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 Year-End (1) (in millions) 2011 2010 2009 2008 2007 --------- --------- --------- --------- --------- LOANS BY CATEGORY Commercial (sec. by RE) $ 1,822 $ 1,761 $ 1,779 $ 1,627 $ 1,476 Commercial construction 164 297 363 500 527 Commercial & industrial 428 441 390 410 418 --------- --------- --------- --------- --------- Total commercial 2,414 2,499 2,532 2,537 2,421 Residential construction 448 695 1,050 1,479 1,829 Residential mortgage 1,135 1,279 1,427 1,526 1,502 Consumer / installment 113 131 142 163 177 --------- --------- --------- --------- --------- Total loans $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929 ========= ========= ========= ========= ========= LOANS BY MARKET Atlanta MSA $ 1,220 $ 1,310 $ 1,435 $ 1,706 $ 2,002 Gainesville MSA 265 312 390 420 399 North Georgia 1,426 1,689 1,884 2,040 2,060 Western North Carolina 597 702 772 810 806 Coastal Georgia 346 335 405 464 416 East Tennessee 256 256 265 265 246 --------- --------- --------- --------- --------- Total loans $ 4,110 $ 4,604 $ 5,151 $ 5,705 $ 5,929 ========= ========= ========= ========= ========= (1) Excludes total loans of$54.5 million ,$68.2 million and$85.1 million as ofDecember 31, 2011 , 2010 and 2009, 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) Fourth Quarter 2011 ------------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ----------- ----------- ----------- NPAs BY CATEGORY Commercial (sec.by RE) $ 27,322 $ 9,745 $ 37,067 Commercial construction 16,655 3,336 19,991 Commercial & industrial 34,613 - 34,613 ----------- ----------- ----------- Total commercial 78,590 13,081 91,671 Residential construction 25,523 12,851 38,374 Residential mortgage 22,358 6,927 29,285 Consumer / installment 1,008 - 1,008 ----------- ----------- ----------- Total NPAs $ 127,479 $ 32,859 $ 160,338 =========== =========== =========== Balance as a % of Unpaid Principal 71.3% 35.9% 59.3% NPAs BY MARKET Atlanta MSA $ 14,480 $ 6,169 $ 20,649 Gainesville MSA 2,069 3,760 5,829 North Georgia 88,600 15,136 103,736 Western North Carolina 15,100 5,365 20,465 Coastal Georgia 5,248 1,620 6,868 East Tennessee 1,982 809 2,791 ----------- ----------- ----------- Total NPAs $ 127,479 $ 32,859 $ 160,338 =========== =========== =========== NPA ACTIVITY Beginning Balance $ 144,484 $ 44,263 $ 188,747 Loans placed on non-accrual 45,675 - 45,675 Payments received (1,884) - (1,884) Loan charge-offs (44,757) - (44,757) Foreclosures (16,039) 16,039 - Capitalized costs - 141 141 Note / property sales - (20,651) (20,651) Write downs - (3,893) (3,893) Net gains (losses) on sales - (3,040) (3,040) ----------- ----------- ----------- Ending Balance $ 127,479 $ 32,859 $ 160,338 =========== =========== =========== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) 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 and second quarters 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 and second quarters of 2011. (3) Annualized.
UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) Third Quarter 2011 ------------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ----------- ----------- ----------- NPAs BY CATEGORY Commercial (sec.by RE) $ 21,998 $ 8,880 $ 30,878 Commercial construction 11,370 5,862 17,232 Commercial & industrial 53,009 - 53,009 ----------- ----------- ----------- Total commercial 86,377 14,742 101,119 Residential construction 34,472 21,561 56,033 Residential mortgage 22,671 7,960 30,631 Consumer / installment 964 - 964 ----------- ----------- ----------- Total NPAs $ 144,484 $ 44,263 $ 188,747 =========== =========== =========== Balance as a % of Unpaid Principal 77.8% 33.4% 59.3% NPAs BY MARKET Atlanta MSA $ 13,350 $ 12,971 $ 26,321 Gainesville MSA 5,311 2,495 7,806 North Georgia 105,078 17,467 122,545 Western North Carolina 13,243 7,941 21,184 Coastal Georgia 5,600 2,354 7,954 East Tennessee 1,902 1,035 2,937 ----------- ----------- ----------- Total NPAs $ 144,484 $ 44,263 $ 188,747 =========== =========== =========== NPA ACTIVITY Beginning Balance $ 71,065 $ 47,584 $ 118,649 Loans placed on non-accrual 103,365 - 103,365 Payments received (3,995) - (3,995) Loan charge-offs (15,335) - (15,335) Foreclosures (10,616) 10,616 - Capitalized costs - 818 818 Note / property sales - (13,787) (13,787) Write downs - (1,772) (1,772) Net gains (losses) on sales - 804 804 ----------- ----------- ----------- Ending Balance $ 144,484 $ 44,263 $ 188,747 =========== =========== =========== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) 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 and second quarters 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 and second quarters of 2011. (3) Annualized.
UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality(1) Second Quarter 2011 ------------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ----------- ----------- ----------- NPAs BY CATEGORY Commercial (sec. by RE) $ 17,764 $ 6,796 $ 24,560 Commercial construction 2,782 6,764 9,546 Commercial & industrial 1,998 - 1,998 ----------- ----------- ----------- Total commercial 22,544 13,560 36,104 Residential construction 22,643 24,968 47,611 Residential mortgage 24,809 9,056 33,865 Consumer / installment 1,069 - 1,069 ----------- ----------- ----------- Total NPAs $ 71,065 $ 47,584 $ 118,649 =========== =========== =========== Balance as a % of Unpaid Principal 64.5% 32.6% 46.3% NPAs BY MARKET Atlanta MSA $ 14,700 $ 11,239 $ 25,939 Gainesville MSA 4,505 3,174 7,679 North Georgia 28,117 21,278 49,395 Western North Carolina 15,153 8,953 24,106 Coastal Georgia 5,357 2,564 7,921 East Tennessee 3,233 376 3,609 ----------- ----------- ----------- Total NPAs $ 71,065 $ 47,584 $ 118,649 =========== =========== =========== NPA ACTIVITY Beginning Balance $ 83,769 $ 54,378 $ 138,147 Loans placed on non-accrual 35,911 - 35,911 Payments received (7,702) - (7,702) Loan charge-offs (18,888) - (18,888) Foreclosures (22,025) 22,025 - Capitalized costs - 20 20 Note / property sales - (28,939) (28,939) Write downs - (3,118) (3,118) Net gains (losses) on sales - 3,218 3,218 ----------- ----------- ----------- Ending Balance $ 71,065 $ 47,584 $ 118,649 =========== =========== =========== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) 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 and second quarters 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 and second quarters of 2011. (3) Annualized.UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) Fourth Quarter Third Quarter Second Quarter 2011 2011 2011(2) ---------------- ---------------- ---------------- Net Net Net Charge- Charge- Charge- Offs to Offs to Offs to Net Average Net Average Net Average Charge- Loans Charge- Loans Charge- Loans (in thousands) Offs (3) Offs (3) Offs (3) -------- ------- -------- ------- -------- ------- NET CHARGE-OFFS BY CATEGORY Commercial (sec. by RE) $ 4,962 1.09% $ 2,192 .50% $ 3,259 .76% Commercial construction 3,318 7.88 1,625 3.54 869 1.70 Commercial & industrial 18,940 17.47 420 .39 523 .49 -------- -------- -------- Total commercial 27,220 4.51 4,237 .71 4,651 .79 Residential construction 12,090 10.36 6,381 5.19 6,629 5.04 Residential mortgage 5,887 2.04 6,110 2.09 4,589 1.55 Consumer / installment 427 1.47 818 2.75 614 2.04 -------- -------- -------- Total $ 45,624 4.39 $ 17,546 1.68 $ 16,483 1.58 ======== ======== ======== NET CHARGE-OFFS BY MARKET Atlanta MSA $ 4,195 1.37% $ 2,813 .94% $ 2,920 .99% Gainesville MSA 2,572 3.84 1,804 2.64 2,318 3.36 North Georgia 34,970 9.46 8,124 2.16 6,575 1.72 Western North Carolina 3,180 2.10 3,608 2.31 3,522 2.21 Coastal Georgia 335 .41 709 .88 815 1.02 East Tennessee 372 .59 488 .78 333 .54 -------- -------- -------- Total $ 45,624 4.39 $ 17,546 1.68 $ 16,483 1.58 ======== ======== ======== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) 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 and second quarters 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 and second quarters of 2011. (3) Annualized.
UNITED COMMUNITY BANKS, INC. Financial Highlights Net Charge-Off Summary (1) Second Quarter 2011 -------------------------------------- Problem Asset Disposition (in thousands) Other Plan Total ------------ ----------- ------------ BY CATEGORY Commercial (sec. by RE) $ 4,972 $ (1,713) $ 3,259 Commercial construction 2,201 (1,332) 869 Commercial & industrial 639 (116) 523 ------------ ----------- ------------ Total commercial 7,812 (3,161) 4,651 Residential construction 9,471 (2,842) 6,629 Residential mortgage 5,844 (1,255) 4,589 Consumer / installment 625 (11) 614 ------------ ----------- ------------ Total $ 23,752 $ (7,269) $ 16,483 ============ =========== ============ BY MARKET Atlanta MSA $ 4,875 $ (1,955) $ 2,920 Gainesville MSA 2,576 (258) 2,318 North Georgia 10,360 (3,785) 6,575 Western North Carolina 4,263 (741) 3,522 Coastal Georgia 1,206 (391) 815 East Tennessee 472 (139) 333 ------------ ----------- ------------ Total $ 23,752 $ (7,269) $ 16,483 ============ =========== ============UNITED COMMUNITY BANKS, INC. Financial Highlights Net Charge-Off Summary (1) First Quarter 2011 -------------------------- Problem Asset Disposition (in thousands) Other Plan ------------ ------------ BY CATEGORY Commercial (sec. by RE) $ 2,842 $ 45,765 Commercial construction 1,146 48,569 Commercial & industrial 513 3,527 ------------ ------------ Total commercial 4,501 97,861 Residential construction 10,643 81,495 Residential mortgage 4,989 31,394 Consumer / installment 383 308 ------------ ------------ Total $ 20,516 $ 211,058 ============ ============ BY MARKET Atlanta MSA $ 3,296 $ 53,193 Gainesville MSA 954 7,662 North Georgia 8,544 114,761 Western North Carolina 6,749 19,698 Coastal Georgia 341 11,662 East Tennessee 632 4,082 ------------ ------------ Total $ 20,516 $ 211,058 ============ ============UNITED COMMUNITY BANKS, INC. Financial Highlights Net Charge-Off Summary (1) First Quarter 2011 First Six Months 2011 ------------ -------------------------------------- Problem Asset Disposition (in thousands) Total Other Plan Total ------------ ------------ ------------ ------------ BY CATEGORY Commercial (sec. by RE) $ 48,607 $ 7,814 $ 44,052 $ 51,866 Commercial construction 49,715 3,347 47,237 50,584 Commercial & industrial 4,040 1,152 3,411 4,563 ------------ ------------ ------------ ------------ Total commercial 102,362 12,313 94,700 107,013 Residential construction 92,138 20,114 78,653 98,767 Residential mortgage 36,383 10,833 30,139 40,972 Consumer / installment 691 1,008 297 1,305 ------------ ------------ ------------ ------------ Total $ 231,574 $ 44,268 $ 203,789 $ 248,057 ============ ============ ============ ============ BY MARKET Atlanta MSA $ 56,489 $ 8,171 $ 51,238 $ 59,409 Gainesville MSA 8,616 3,530 7,404 10,934 North Georgia 123,305 18,904 110,976 129,880 Western North Carolina 26,447 11,012 18,957 29,969 Coastal Georgia 12,003 1,547 11,271 12,818 East Tennessee 4,714 1,104 3,943 5,047 ------------ ------------ ------------ ------------ Total $ 231,574 $ 44,268 $ 203,789 $ 248,057 ============ ============ ============ ============ (1) This schedule presents net charge-offs by loan type and geographic market separated between those charge offs related to United's first quarter 2011 Problem Asset Disposition Plan including losses on loans sold in the bulk loan sale transaction that closed onApril 18, 2011 and all other charge-offs. The charge-offs on the bulk loan sale recognized in the first quarter were estimated based on indicative bids from prospective buyers. Actual losses were less than estimated resulting in an adjustment to the loss in the second quarter.
UNITED COMMUNITY BANKS, INC. Consolidated Statement of Operations (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- (in thousands, except per share data) 2011 2010 2011 2010 --------- --------- --------- --------- Interest revenue: Loans, including fees $ 57,697 $ 66,659 $ 239,056 $ 277,904 Investment securities, including tax exempt of$255 , $251, $1,009 and $1,137 13,296 13,215 56,260 59,958 Federal funds sold, commercial paper and deposits in banks 489 844 2,321 3,260 --------- --------- --------- --------- Total interest revenue 71,482 80,718 297,637 341,122 --------- --------- --------- --------- Interest expense: Deposits: NOW 807 1,662 3,998 6,966 Money market 800 2,036 5,456 7,552 Savings 41 81 234 331 Time 7,338 12,868 39,151 66,883 --------- --------- --------- --------- Total deposit interest expense 8,986 16,647 48,839 81,732 Federal funds purchased, repurchase agreements and other short-term borrowings 1,053 1,073 4,250 4,235Federal Home Loan Bank advances 441 608 2,042 3,355 Long-term debt 2,375 2,755 10,544 10,749 --------- --------- --------- --------- Total interest expense 12,855 21,083 65,675 100,071 --------- --------- --------- --------- Net interest revenue 58,627 59,635 231,962 241,051 Provision for loan losses 14,000 36,000 251,000 223,000 --------- --------- --------- --------- Net interest revenue after provision for loan losses 44,627 23,635 (19,038) 18,051 --------- --------- --------- --------- Fee revenue: Service charges and fees 7,248 7,039 29,110 30,127 Mortgage loan and other related fees 1,825 1,868 5,419 7,019 Brokerage fees 782 778 2,986 2,662 Securities gains, net 4 - 842 2,552 Loss from prepayment of debt - - (791) (2,233) Other 2,808 2,757 12,342 8,421 --------- --------- --------- --------- Total fee revenue 12,667 12,442 49,908 48,548 --------- --------- --------- --------- Total revenue 57,294 36,077 30,870 66,599 --------- --------- --------- --------- Operating expenses: Salaries and employee benefits 23,473 23,777 100,095 96,618 Communications and equipment 3,129 3,377 13,135 13,781 Occupancy 3,972 4,024 15,645 15,394 Advertising and public relations 944 1,102 4,291 4,625 Postage, printing and supplies 1,017 1,063 4,256 4,072 Professional fees 1,996 3,016 9,727 9,254 Foreclosed property 9,302 20,602 78,905 65,707FDIC assessments and other regulatory charges 2,599 3,299 14,259 13,747 Amortization of intangibles 746 771 3,016 3,160 Other 3,902 3,887 18,270 16,594 Goodwill impairment - - - 210,590 Loss on sale of nonperforming assets - - - 45,349 --------- --------- --------- --------- Total operating expenses 51,080 64,918 261,599 498,891 --------- --------- --------- --------- Loss from continuing operations before income taxes 6,214 (28,841) (230,729) (432,292) Income tax benefit (3,687) 144,263 (3,983) 71,217 --------- --------- --------- --------- Net loss from continuing operations 9,901 (173,104) (226,746) (503,509) Loss from discontinued operations, net of income taxes - - - (101) Gain from sale of subsidiary, net of income taxes and selling costs - - - 1,266 --------- --------- --------- --------- Net loss 9,901 (173,104) (226,746) (502,344) Preferred stock dividends and discount accretion 3,025 2,586 11,838 10,316 --------- --------- --------- --------- Net loss available to common shareholders $ 6,876 $(175,690) $(238,584) $(512,660) ========= ========= ========= ========= Loss from continuing operations per common share - Basic $ .12 $ (9.25) $ (5.97) $ (27.15) Loss from continuing operations per common share - Diluted .12 (9.25) (5.97) (27.15) Loss per common share - Basic .12 (9.25) (5.97) (27.09) Loss per common share - Diluted .12 (9.25) (5.97) (27.09) Weighted average common shares outstanding - Basic 57,646 18,984 39,943 18,925 Weighted average common shares outstanding - Diluted 57,646 18,984 39,943 18,925
UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheet December 31, December 31, (in thousands, except share and per share data) 2011 2010 ------------ ------------ (unaudited) (audited) ASSETS Cash and due from banks $ 53,807 $ 95,994 Interest-bearing deposits in banks 139,609 111,901 Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments 185,000 441,562 ------------ ------------ Cash and cash equivalents 378,416 649,457 Securities available for sale 1,790,047 1,224,417 Securities held to maturity (fair value $333,912 and $267,988) 330,203 265,807 Mortgage loans held for sale 23,881 35,908 Loans, net of unearned income 4,109,614 4,604,126 Less allowance for loan losses 114,468 174,695 ------------ ------------ Loans, net 3,995,146 4,429,431 Assets covered by loss sharing agreements with the FDIC 78,145 131,887 Premises and equipment, net 175,088 178,239 Accrued interest receivable 20,693 24,299 Goodwill and other intangible assets 8,428 11,446 Foreclosed property 32,859 142,208 Other assets 150,514 183,160 ------------ ------------ Total assets $ 6,983,420 $ 7,276,259 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Demand $ 992,109 $ 793,414 NOW 1,509,896 1,424,781 Money market 1,038,778 891,252 Savings 199,007 183,894 Time: Less than $100,000 1,332,394 1,496,700 Greater than $100,000 847,152 1,002,359 Brokered 178,647 676,772 ------------ ------------ Total deposits 6,097,983 6,469,172 Federal funds purchased, repurchase agreements, and other short-term borrowings 102,577 101,067 Federal Home Loan Bank advances 40,625 55,125 Long-term debt 120,225 150,146 Unsettled securities purchases 10,325 - Accrued expenses and other liabilities 36,199 32,171 ------------ ------------ Total liabilities 6,407,934 6,807,681 ------------ ------------ 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 Series B;$1,000 stated value; 180,000 shares issued and outstanding 177,092 175,711 Series D;$1,000 stated value; 16,613 shares issued and outstanding 16,613 - Common stock,$1 par value; 100,000,000 shares authorized; 41,647,100 and 18,937,001 shares issued and outstanding 41,647 18,937 Common stock, non-voting,$1 par value; 30,000,000 shares authorized; 15,914,209 shares issued and outstanding 15,914 - Common stock issuable; 93,681 and 67,287 shares 3,233 3,894 Capital surplus 1,054,940 741,244 Accumulated deficit (730,861) (492,276) Accumulated other comprehensive income (3,309) 20,851 ------------ ------------ Total shareholders' equity 575,486 468,578 ------------ ------------ Total liabilities and shareholders' equity $ 6,983,420 $ 7,276,259 ============ ============
UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended December 31, 2011 2010 -------------------------- -------------------------- (dollars in thousands, taxable Average Avg. Average Avg. equivalent) Balance Interest Rate Balance Interest Rate ---------- -------- ----- ---------- -------- ----- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $4,175,320 $ 57,773 5.49% $4,768,120 $ 66,750 5.55% Taxable securities (3) 2,114,069 13,041 2.47 1,327,999 12,964 3.90 Tax-exempt securities (1)(3) 27,224 417 6.13 25,917 410 6.33 Federal funds sold and other interest-earning assets 371,606 674 .73 558,143 1,091 .78 ---------- -------- ---------- -------- Total interest- earning assets 6,688,219 71,905 4.27 6,680,179 81,215 4.83 ---------- -------- ---------- -------- Non-interest-earning assets: Allowance for loan losses (145,559) (185,300) Cash and due from banks 54,485 112,923 Premises and equipment 176,182 178,729 Other assets (3) 245,664 467,871 ---------- ---------- Total assets $7,018,991 $7,254,402 ========== ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,451,581 807 .22 $1,436,976 1,662 .46 Money market 1,041,375 800 .30 870,884 2,036 .93 Savings 198,541 41 .08 184,651 81 .17 Time less than $100,000 1,358,367 3,668 1.07 1,489,933 6,292 1.68 Time greater than $100,000 875,434 2,867 1.30 1,010,104 4,736 1.86 Brokered 180,933 803 1.76 491,477 1,840 1.49 ---------- -------- ---------- -------- Total interest- bearing deposits 5,106,231 8,986 .70 5,484,025 16,647 1.20 ---------- -------- ---------- -------- Federal funds purchased and other borrowings 102,776 1,053 4.06 102,830 1,073 4.14 Federal Home Loan Bank advances 40,625 441 4.31 58,712 608 4.11 Long-term debt 120,217 2,375 7.84 150,137 2,755 7.28 ---------- -------- ---------- -------- Total borrowed funds 263,618 3,869 5.82 311,679 4,436 5.65 ---------- -------- ---------- -------- Total interest- bearing liabilities 5,369,849 12,855 .95 5,795,704 21,083 1.44 -------- -------- Non-interest-bearing liabilities: Non-interest- bearing deposits 1,008,327 809,604 Other liabilities 59,908 83,452 ---------- ---------- Total liabilities 6,438,084 6,688,760 Shareholders' equity 580,907 565,642 ---------- ---------- Total liabilities and shareholders' equity $7,018,991 $7,254,402 ========== ========== Net interest revenue $ 59,050 $ 60,132 ======== ======== Net interest-rate spread 3.32% 3.39% ===== ===== Net interest margin (4) 3.51% 3.58% ===== ===== (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$31.3 million in 2011 and$40.8 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 Twelve Months Ended December 31, 2011 2010 -------------------------- -------------------------- (dollars in thousands, taxable Average Avg. Average Avg. equivalent) Balance Interest Rate Balance Interest Rate ---------- -------- ----- ---------- -------- ----- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $4,307,111 $239,195 5.55% $4,960,805 $278,149 5.61% Taxable securities (3) 1,973,678 55,251 2.80 1,425,322 58,821 4.13 Tax-exempt securities (1)(3) 25,693 1,651 6.43 27,827 1,860 6.68 Federal funds sold and other interest-earning assets 478,403 3,247 .68 408,359 4,293 1.05 ---------- -------- ---------- -------- Total interest- earning assets 6,784,885 299,344 4.41 6,822,313 343,123 5.03 ---------- -------- ---------- -------- Non-interest-earning assets: Allowance for loan losses (145,656) (190,227) Cash and due from banks 90,212 106,582 Premises and equipment 178,061 180,379 Other assets (3) 281,233 685,547 ---------- ---------- Total assets $7,188,735 $7,604,594 ========== ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,348,493 3,998 .30 $1,360,729 6,966 .51 Money market 993,871 5,456 .55 780,982 7,552 .97 Savings 195,468 234 .12 184,479 331 .18 Time less than $100,000 1,471,596 18,648 1.27 1,581,750 30,260 1.91 Time greater than $100,000 948,659 14,347 1.51 1,084,967 23,114 2.13 Brokered 401,393 6,156 1.53 610,483 13,509 2.21 ---------- -------- ---------- -------- Total interest- bearing deposits 5,359,480 48,839 .91 5,603,390 81,732 1.46 ---------- -------- ---------- -------- Federal funds purchased and other borrowings 102,727 4,250 4.14 103,479 4,235 4.09 Federal Home Loan Bank advances 47,220 2,042 4.32 90,137 3,355 3.72 Long-term debt 139,666 10,544 7.55 150,107 10,749 7.16 ---------- -------- ---------- -------- Total borrowed funds 289,613 16,836 5.81 343,723 18,339 5.34 ---------- -------- ---------- -------- Total interest- bearing liabilities 5,649,093 65,675 1.16 5,947,113 100,071 1.68 -------- -------- Non-interest-bearing liabilities: Non-interest- bearing deposits 915,649 769,395 Other liabilities 66,809 69,367 ---------- ---------- Total liabilities 6,631,551 6,785,875 Shareholders' equity 557,184 818,719 ---------- ---------- Total liabilities and shareholders' equity $7,188,735 $7,604,594 ========== ========== Net interest revenue $233,669 $243,052 ======== ======== Net interest-rate spread 3.25% 3.35% ===== ===== Net interest margin (4) 3.44% 3.56% ===== ===== (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$32.2 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. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset For the Three Months Ended ------------------------------------------------------- September 30, 2011 June 30, 2011 --------------------------- -------------------------- (in thousands, except per share data; taxable As Adjust- As As Adjust- As equivalent) Reported ment Restated Reported ment Restated -------- ------- -------- -------- ------- -------- Consolidated Statement of Operations Income tax expense (benefit) $ (5,959) $ 5,137 $ (822) $ 5,077 $(4,411) $ 666 Net income (loss) from continuing operations (6,202) (5,137) (11,339) 7,617 4,411 12,028 Net operating income (loss) from continuing operations (6,202) (5,137) (11,339) 7,617 4,411 12,028 Net income (loss) (6,202) (5,137) (11,339) 7,617 4,411 12,028 Net income (loss) available to common shareholders (9,221) (5,137) (14,358) 4,601 4,411 9,012 Per Share Information Income (loss) from continuing operations - basic $ (.16) $ (.09) $ (.25) $ .18 $ .17 $ .35 Income (loss) from continuing operations - diluted (.16) (.09) (.25) .08 .08 .16 Operating income (loss) from continuing operations - diluted (.16) (.09) (.25) .08 .08 .16 Income (loss) - basic (.16) (.09) (.25) .18 .17 .35 Income (loss) - diluted (.16) (.09) (.25) .08 .08 .16 Key Performance Measures Return on equity (%) (5.72) (9.34) (15.06) 5.34 37.26 42.60 Return on assets (%) (.34) (.30) (.64) .40 .26 .66 Equity to assets (%) 11.83 (3.28) 8.55 11.21 (3.15) 8.06 Tangible equity to assets (%) 11.76 (3.34) 8.42 11.13 (3.20) 7.93 Tangible common equity to assets (%) 9.09 (3.44) 5.65 4.79 (3.42) 1.37 Tangible common equity to risk- weighted assets (%) 14.41 (5.89) 8.52 14.26 (5.57) 8.69 Average total assets ($ in millions) $ 7,261 $ (261) $ 7,000 $ 7,624 $ (261) $ 7,363 Average shareholders' equity ($ in millions) 859 (261) 598 854 (260) 594 Regulatory Capital Ratios - Holding Company Tier 1 leverage ratio (%) 8.97 (.18) 8.79 8.71 (.19) 8.52 Tier 1 risk-based capital ratio (%) 13.97 (.22) 13.75 13.88 (.26) 13.62 Total risk-based capital ratio (%) 15.84 (.21) 15.63 16.40 (.24) 16.16 Regulatory Capital Ratios - Bank Tier 1 leverage ratio (%) 8.84 (.18) 8.66 8.54 (.19) 8.35 Tier 1 risk-based capital ratio (%) 13.80 (.26) 13.54 13.62 (.29) 13.33 Total risk-based capital ratio (%) 15.07 (.25) 14.82 15.41 (.29) 15.12
UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset For the Three Months Ended -------------------------------------------------------------- March 31, 2011 December 31, 2010 ------------------------------ ------------------------------ (in thousands, except per share data; taxable As Adjust- As As Adjust- As equivalent) Reported ment Restated Reported ment Restated --------- -------- --------- -------- --------- --------- Consolidated Statement of Operations Income tax expense (benefit) $ (94,990) $ 94,850 $ (140) $(12,446) $ 156,709 $ 144,263 Net income (loss) from continuing operations (142,486) (94,850) (237,336) (16,395) (156,709) (173,104) Net operating income (loss) from continuing operations (142,486) (94,850) (237,336) (23,574) (161,280) (184,854) Net income (loss) (142,486) (94,850) (237,336) (16,395) (156,709) (173,104) Net income (loss) available to common shareholders (145,264) (94,850) (240,114) (18,981) (156,709) (175,690) Per Share Information Income (loss) from continuing operations - basic $ (7.87) $ (5.13) $ (13.00) $ (1.00) $ (8.25) $ (9.25) Income (loss) from continuing operations - diluted (7.87) (5.13) (13.00) (1.00) (8.25) (9.25) Operating income (loss) from continuing operations - diluted (7.87) (5.13) (13.00) (1.38) (8.49) (9.87) Income (loss) - basic (7.87) (5.13) (13.00) (1.00) (8.25) (9.25) Income (loss) - diluted (7.87) (5.13) (13.00) (1.00) (8.25) (9.25) Key Performance Measures Return on equity (%) (147.11) (379.43) (526.54) (17.16) (178.94) (196.10) Return on assets (%) (7.61) (5.43) (13.04) (.89) (8.58) (9.47) Equity to assets (%) 8.82 (2.67) 6.15 8.85 (1.05) 7.80 Tangible equity to assets (%) 8.73 (2.72) 6.01 8.75 (1.11) 7.64 Tangible common equity to assets (%) 5.51 (2.81) 2.70 6.35 (1.13) 5.22 Tangible common equity to risk- weighted assets (%) 6.40 (5.65) .75 9.05 (3.41) 5.64 Average total assets ($ in millions) $ 7,595 $ (216) $ 7,379 $ 7,338 $ (84) $ 7,254 Average shareholders' equity ($ in millions) 670 (216) 454 649 (83) 566 Regulatory Capital Ratios - Holding Company Tier 1 leverage ratio (%) 4.95 (.20) 4.75 6.75 .01 6.76 Tier 1 risk- based capital ratio (%) 7.67 (.24) 7.43 9.67 .14 9.81 Total risk- based capital ratio (%) 15.34 (.49) 14.85 12.11 .14 12.25 Regulatory Capital Ratios - Bank Tier 1 leverage ratio (%) 8.34 (.22) 8.12 7.45 - 7.45 Tier 1 risk- based capital ratio (%) 12.95 (.24) 12.71 10.72 .13 10.85 Total risk- based capital ratio (%) 14.73 (.24) 14.49 12.48 .13 12.61
UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset For the Year to Date Period Ended -------------------------------------------------------------- September 30, 2011 June 30, 2011 ------------------------------ ------------------------------ (in thousands, except per share data; taxable As Adjustme As As Adjustme As equivalent) Reported nt Restated Reported nt Restated --------- -------- --------- --------- -------- --------- Consolidated Statement of Operations Income tax expense (benefit) $ (95,872) $ 95,576 $ (296) $ (89,913) $ 90,439 $ 526 Net income (loss) from continuing operations (141,071) (95,576) (236,647) (134,869) (90,439) (225,308) Net operating income (loss) from continuing operations (141,071) (95,576) (236,647) (134,869) (90,439) (225,308) Net income (loss) (141,071) (95,576) (236,647) (134,869) (90,439) (225,308) Net income (loss) available to common shareholders (149,884) (95,576) (245,460) (140,663) (90,439) (231,102) Per Share Information Income (loss) from continuing operations - basic $ (4.41) $ (2.82) $ (7.23) $ (6.40) $ (4.12) $ (10.52) Income (loss) from continuing operations - diluted (4.41) (2.82) (7.23) (6.40) (4.12) (10.52) Operating income (loss) from continuing operations - diluted (4.41) (2.82) (7.23) (6.40) (4.12) (10.52) Income (loss) - basic (4.41) (2.82) (7.23) (6.40) (4.12) (10.52) Income (loss) - diluted (4.41) (2.82) (7.23) (6.40) (4.12) (10.52) Consolidated Statement of Changes in Shareholders' Equity Net income (loss) $(141,071) $(95,576) $(236,647) $(134,869) $(90,439) $(225,308) Unrealized holding gains (losses) on available for sale securities 2,910 1,678 4,588 5,133 2,870 8,003 Reclassifica- tion adjustment for gains on securities available for sale included in fee revenue - - - - - - Unrealized losses on derivative financial instruments qualifying as cash flow hedges (7,680) (4,890) (12,570) (5,879) (3,743) (9,622) Comprehensive income (loss) (145,841) (98,788) (244,629) (135,615) (91,312) (226,927) Penalty received on incomplete private equity transaction 2,375 875 3,250 2,375 875 3,250 Consolidated Statement of Cash Flows Net income (loss) $(141,071) $(95,576) $(236,647) $(134,869) $(90,439) $(225,308) Deferred income tax benefit - - - - - - Net change in other assets and accrued interest receivable (35,735) 95,576 59,841 (49,255) 90,439 41,184 Key Performance Measures Return on equity (%) (43.31) (108.01) (151.32) (76.07) (269.79) (345.86) Return on assets (%) (2.52) (1.85) (4.37) (3.57) (2.59) (6.16) Equity to assets (%) 10.61 (3.03) 7.58 10.02 (2.91) 7.11 Tangible equity to assets (%) 10.53 (3.08) 7.45 9.94 (2.96) 6.98 Tangible common equity to assets (%) 6.44 (3.23) 3.21 5.15 (3.12) 2.03 Tangible common equity to risk- weighted assets (%) 14.41 (5.89) 8.52 14.26 (5.57) 8.69 Average total assets ($ in millions) $ 7,492 $ (246) $ 7,246 $ 7,609 $ (238) $ 7,371 Average shareholders' equity ($ in millions) 795 (246) 549 763 (239) 524
UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset For the Year to Date Period Ended --------------------------------------------------------------- March 31, 2011 December 31, 2010 ------------------------------ ------------------------------- (in thousands, except per share data; taxable As Adjustme As As Adjustmen As equivalent) Reported nt Restated Reported t Restated --------- -------- --------- --------- --------- --------- Consolidated Statement of Operations Income tax expense (benefit) $ (94,990) $ 94,850 $ (140) $ (85,492) $ 156,709 $ 71,217 Net income (loss) from continuing operations (142,486) (94,850) (237,336) (346,800) (156,709) (503,509) Net operating income (loss) from continuing operations (142,486) (94,850) (237,336) (143,389) (161,280) (304,669) Net income (loss) (142,486) (94,850) (237,336) (345,635) (156,709) (502,344) Net income (loss) available to common shareholders(145,264) (94,850) (240,114) (355,951) (156,709) (512,660) Per Share Information Income (loss) from continuing operations - basic $ (7.87) $ (5.13) $ (13.00) $ (18.87) $ (8.28) $ (27.15) Income (loss) from continuing operations - diluted (7.87) (5.13) (13.00) (18.87) (8.28) (27.15) Operating income (loss) from continuing operations -diluted (7.87) (5.13) (13.00) (8.12) (8.52) (16.64) Income (loss) - basic (7.87) (5.13) (13.00) (18.81) (8.28) (27.09) Income (loss) - diluted (7.87) (5.13) (13.00) (18.81) (8.28) (27.09) Consolidated Statement of Changes in Shareholders' Equity Net income (loss) $(142,486) $(94,850) $(237,336) $(345,635) $(156,709) $(502,344) Unrealized holding gains (losses) on available for sale securities (1,003) (674) (1,677) (4,986) (3,165) (8,151) Reclassifica- tion adjustment for gains on securities available for sale included in fee revenue - - - (1,559) (993) (2,552) Unrealized losses on derivative financial instruments qualifying as cash flow hedges (2,580) (1,643) (4,223) (10,011) (6,070) (16,081) Comprehens- ive income (loss) (146,069) (97,167) (243,236) (362,191) (166,937) (529,128) Penalty received on incomplete private equity transaction - - - - - - Consolidated Statement of Cash Flows Net income (loss) $(142,486) $(94,850) $(237,336) $(345,635) $(156,709) $(502,344) Deferred income tax benefit - - - (87,455) 156,709 69,254 Net change in other assets and accrued interest receivable (90,321) 94,850 4,529 - - - Key Performance Measures Return on equity (%) (147.11) (379.43) (526.54) (57.08) (27.98) (85.06) Return on assets (%) (7.61) (5.43) (13.04) (4.53) (2.08) (6.61) Equity to assets (%) 8.82 (2.67) 6.15 11.01 (.24) 10.77 Tangible equity to assets (%) 8.73 (2.72) 6.01 9.15 (.32) 8.83 Tangible common equity to assets (%) 5.51 (2.81) 2.70 6.80 (.32) 6.48 Tangible common equity to risk- weighted assets (%) 6.40 (5.65) .75 9.05 (3.41) 5.64 Average total assets ($ in millions) $ 7,595 $ (216) $ 7,379 $ 7,626 $ (21) $ 7,605 Average shareholders' equity ($ in millions) 670 (216) 454 840 (21) 819
UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset As Of ----------------------------------------- September 30, 2011 ---------------------------------------- (in thousands, except per share data; taxable equivalent) As Reported Adjustment As Restated ------------ ------------ ------------ Consolidated Balance Sheet Net deferred tax asset $ 264,275 $ (264,275) $ - Other assets 153,329 (575) 152,754 Total assets 7,159,123 (264,850) 6,894,273 Capital surplus 1,052,690 875 1,053,565 (Accumulated deficit) retained earnings (485,451) (252,285) (737,736) Accumulated other comprehensive income 26,309 (13,440) 12,869 Total shareholders' equity 848,217 (264,850) 583,367 Total liabilities and shareholders' equity 7,159,123 (264,850) 6,894,273 Key Performance Measures Book value per share $ 11.37 $ (4.60) $ 6.77 Tangible book value per share 11.26 (4.65) 6.61 Nonperforming assets to total assets (%) 2.64 .10 2.74UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset As Of ----------------------------------------- June 30, 2011 ---------------------------------------- (in thousands, except per share data; taxable equivalent) As Reported Adjustment As Restated ------------ ------------ ------------ Consolidated Balance Sheet Net deferred tax asset $ 261,268 $ (261,268) $ - Other assets 172,074 3,894 175,968 Total assets 7,409,669 (257,374) 7,152,295 Capital surplus 1,051,607 875 1,052,482 (Accumulated deficit) retained earnings (476,230) (247,148) (723,378) Accumulated other comprehensive income 30,333 (11,101) 19,232 Total shareholders' equity 859,975 (257,374) 602,601 Total liabilities and shareholders' equity 7,409,669 (257,374) 7,152,295 Key Performance Measures Book value per share $ 11.59 $ (4.48) $ 7.11 Tangible book value per share 11.47 (4.53) 6.94 Nonperforming assets to total assets (%) 1.60 .06 1.66
UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset As Of ----------------------------------------- March 31, 2011 ---------------------------------------- (in thousands, except per share data; taxable equivalent) As Reported Adjustment As Restated ------------ ------------ ------------ Consolidated Balance Sheet Net deferred tax asset $ 266,367 $ (266,367) $ - Other assets 174,742 2,263 177,005 Total assets 7,973,592 (264,104) 7,709,488 Capital surplus 738,963 - 738,963 (Accumulated deficit) retained earnings (480,831) (251,559) (732,390) Accumulated other comprehensive income 27,496 (12,545) 14,951 Total shareholders' equity 850,148 (264,104) 586,044 Total liabilities and shareholders' equity 7,973,592 (264,104) 7,709,488 Key Performance Measures Book value per share $ 14.78 $ (12.58) $ 2.20 Tangible book value per share 14.44 (12.75) 1.69 Nonperforming assets to total assets (%) 1.73 .06 1.79UNITED COMMUNITY BANKS, INC. Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset As Of ----------------------------------------- December 31, 2010 ---------------------------------------- (in thousands, except per share data; taxable equivalent) As Reported Adjustment As Restated ------------ ------------ ------------ Consolidated Balance Sheet Net deferred tax asset $ 166,937 $ (166,937) $ - Other assets 183,160 - 183,160 Total assets 7,443,196 (166,937) 7,276,259 Capital surplus 741,244 - 741,244 (Accumulated deficit) retained earnings (335,567) (156,709) (492,276) Accumulated other comprehensive income 31,079 (10,228) 20,851 Total shareholders' equity 635,515 (166,937) 468,578 Total liabilities and shareholders' equity 7,443,196 (166,937) 7,276,259 Key Performance Measures Book value per share $ 24.48 $ (9.08) $ 15.40 Tangible book value per share 23.78 (8.98) 14.80 Nonperforming assets to total assets (%) 4.32 .10 4.42
For more information:Rex S. Schuette Chief Financial Officer (706) 781-2266 Email Contact
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