United Community Banks, Inc. Reports 17 Percent Gain in Diluted Earnings per Share for Third Quarter 2006
BLAIRSVILLE, GA, Oct 24, 2006 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
HIGHLIGHTS:
-- Record Third Quarter Earnings
Diluted Earnings per Share of 42 Cents - Up 17 Percent
Net Income of $17.4 Million - Up 22 Percent
Return on Tangible Equity of 17.29 Percent
Total Assets Rise to $6.5 Billion
-- Strong Loan and Deposit Growth and Rise in Net Interest Margin Drive
Performance
-- 25th Community Bank now open in Cleveland, Tennessee
United Community Banks, Inc. (NASDAQ: UCBI), Georgia's third-largest bank holding company, today announced record financial results for the third quarter of 2006. Compared with the third quarter of 2005, the company achieved a 14 percent increase in total revenue, a 22 percent rise in net income and a 17 percent gain in diluted earnings per share.
For the third quarter of 2006, net income was $17.4 million compared with $14.3 million a year earlier. Diluted earnings per share increased to 42 cents from 36 cents a year ago. Total revenue, on a taxable equivalent basis, was $72.8 million compared with $64.0 million for the third quarter of 2005. Return on tangible equity was 17.29 percent and return on assets was 1.09 percent, compared with 18.90 percent and 1.01 percent, respectively, a year ago.
"Our winning combination of seasoned bankers and attractive markets continues to produce strong business growth," said Jimmy Tallent, president and chief executive officer of United Community Banks. "Loans increased $155 million during the third quarter, up 17 percent from a year ago, and helped drive the increase in net interest revenue. We funded our loan growth with customer deposits by more than two to one, adding $312 million this quarter. The strong growth pushed total assets to $6.5 billion, a 13 percent increase from a year ago while substantially lessening our use of wholesale borrowings. Our net interest margin was 4.30 percent, up 13 basis points from a year ago as rising short-term interest rates positively affected our slightly asset-sensitive balance sheet."
For the first nine months of 2006, net income increased $8.9 million to $50.4 million, up 21 percent from $41.5 million for the first nine months of 2005. Diluted earnings per share of $1.22 increased 17 cents, or 16 percent, from $1.05 for the first nine months of 2005. Total revenue, on a taxable equivalent basis, was $211.4 million, up 17 percent from $180.7 million a year ago. Return on tangible equity was 17.54 percent and return on assets was 1.09 percent, compared with 19.30 percent and 1.03 percent, respectively, a year ago.
At September 30, 2006, total loans were $5.0 billion, up $711 million, or 17 percent, from a year ago. With the exception of $8 million in loans received through branch acquisitions during the quarter, 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. In the third quarter, we opened our 25th community bank, United Community Bank - Cleveland, which complements our existing franchise along the high-growth I-75 industrial corridor in east Tennessee. This new bank is led by President Mickey Torbett who is joined by nine other local veteran bankers. United now has a stronger foothold in this attractive market that is among Tennessee's leaders in number of manufacturing companies."
"Also during the quarter, we opened a new banking office in Cumming, which is located in Forsyth County on the north side of metro Atlanta," added Tallent. "We expanded our commercial loan office in Jasper, in Pickens County, to a full-service banking office. This commercial loan office was opened in the first quarter of 2006, along with a banking office in Savannah and Hall County, Georgia. We continue to look for opportunities to expand our franchise through de novo locations in both new and existing markets."
Tallent continued, "Our balanced growth strategy also includes selective acquisitions. During the third quarter, we completed the acquisition of two banking offices in Sylva and Bryson City, North Carolina, expanding the customer base in those markets. Also, we announced an agreement to acquire Southern Bancorp, Inc., and its wholly owned subsidiary, Southern National Bank. Southern National Bank has two offices in Marietta and Canton, located in fast-growing Cobb and Cherokee counties on the northwest side of metro Atlanta."
"With a strong management team and assets of $346 million, Southern National Bank significantly leverages our presence in these northwest metro Atlanta markets, especially Cherokee County," Tallent said. "First, when the transaction is completed in the fourth quarter, it will provide us with the opportunity to form a new community bank in Cherokee County by adding their Canton office to our existing office in that county. Steve Holcomb, the current president of Southern National, will become the president of our 26th community bank, United Community Bank - Cherokee. Holcomb and his team of 13 Cherokee County bankers have over 300 years of experience in that local community, where United's deposit market share will improve from fifteenth to ninth. We have a great opportunity to significantly expand our franchise in Cherokee County over the next year and beyond. Second, it will allow us to add their downtown Marietta office to our four banking offices in Cobb County. This will strengthen our presence in Marietta and Cobb County, and increase our deposit market share from fourteenth to seventh," added Tallent.
"In every one of our communities, 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 percent, well above the comparable industry average of 75 percent. 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 third quarter, taxable equivalent net interest revenue of $64.4 million was up $9.4 million, or 17 percent, from the third quarter of 2005. Taxable equivalent net interest margin for the third quarter was 4.30 percent, compared with 4.17 percent a year ago. "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 from a year ago," Tallent said.
The third quarter provision for loan losses was $3.7 million, an increase of $300,000 from a year earlier, and equal to the second quarter of 2006. Annualized net charge-offs to average loans was 11 basis points for the third quarter, compared with nine basis points for the second quarter of 2006 and 13 basis points for the third quarter of 2005. At quarter-end, non-performing assets totaled $9.3 million compared with $8.8 million at the end of the second quarter of 2006 and $13.6 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the second quarter of 2006 and down from 24 basis points at September 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 $12.1 million was down slightly from $12.4 million for the third quarter of 2005, primarily due to lower mortgage fees and losses from the sale of securities. Mortgage fees were down from a year ago due to a less favorable interest rate environment leading to lower refinancing activity. Also impacting fee revenue this quarter was a $290,000 charge for the prepayment of Federal Home Loan Bank advances that was part of our balance sheet management activities. Service charges and fees on deposit accounts increased $287,000 to $6.9 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Consulting fees and brokerage fees were each up more than $200,000 from a year ago reflecting growth in both businesses.
Operating expenses of $44.9 million increased $3.6 million, or 9 percent, from the third quarter of 2005. Salaries and employee benefit costs of $29.6 million increased $3.3 million, or 12 percent, from the third quarter of 2005 due to the increase in staff to support our expansion efforts and business growth. Communications and equipment expenses increased $379,000 to $3.9 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Occupancy expense increased $202,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. Advertising and public relations expense rose $199,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in selected markets.
"We had a positive operating leverage of 5 percent this quarter," Tallent said. "Also, our operating efficiency ratio of 58.4 percent was within our long-term efficiency goal of 58 to 60 percent. 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."
"Our outlook for the fourth quarter of 2006 is for earnings per share growth slightly above our long-term goal of 12 to 15 percent. For 2007, our outlook for growth is within this range of 12 to 15 percent," Tallent
said. "We anticipate core loan growth for the fourth quarter and next year to be within a range of 10 to 12 percent. Our net interest margin has benefited from rising short-term interest rates; however, we expect that the margin through next year will continue to stabilize and possibly compress slightly from the third quarter level due to further price competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality."
"Our results for the first nine months of 2006 are leading toward another year of strong growth and superior operating performance," Tallent concluded. "We are committed to excellent customer service while maintaining solid credit quality as we continue our efforts to build shareholder value through strong internal growth complemented by selective de novo and merger expansion."
Conference Call
United Community Banks will hold a conference call on Tuesday, October 24, 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 and next year. The telephone number for the conference call is (800) 299-6183 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 $6.5 billion and operates 25 community banks with 96 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
-------------------------------------
(in thousands, except per share Third Second First
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 119,802 $ 111,728 $ 102,797
Interest expense 55,431 49,407 43,065
----------- ----------- -----------
Net interest revenue 64,371 62,321 59,732
Provision for loan losses 3,700 3,700 3,500
Fee revenue 12,146 11,976 11,758
----------- ----------- -----------
Total revenue 72,817 70,597 67,990
Operating expenses 44,939 43,483 42,222
----------- ----------- -----------
Income before taxes 27,878 27,114 25,768
Income taxes 10,465 10,185 9,729
----------- ----------- -----------
Net income $ 17,413 $ 16,929 $ 16,039
=========== =========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .43 $ .42 $ .40
Diluted earnings .42 .41 .39
Cash dividends declared .08 .08 .08
Book value 13.07 12.34 12.09
Tangible book value (2) 10.16 9.50 9.25
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.29% 17.68% 17.66%
Return on equity (1)(3) 13.22 13.41 13.25
Return on assets (3) 1.09 1.10 1.09
Net interest margin (3) 4.30 4.34 4.33
Efficiency ratio 58.44 58.53 59.06
Dividend payout ratio 18.60 19.05 20.00
Equity to assets 8.04 7.95 8.04
Tangible equity to assets (2) 6.35 6.22 6.24
ASSET QUALITY
Allowance for loan losses $ 60,901 $ 58,508 $ 55,850
Non-performing assets 9,347 8,805 8,367
Net charge-offs 1,307 1,042 1,245
Allowance for loan losses to loans 1.23% 1.22% 1.22%
Non-performing assets to total
assets .14 .14 .14
Net charge-offs to average loans
(3) .11 .09 .11
AVERAGE BALANCES
Loans $ 4,865,886 $ 4,690,196 $ 4,505,494
Investment securities 1,029,981 1,039,707 1,038,683
Earning assets 5,942,710 5,758,697 5,574,712
Total assets 6,350,205 6,159,152 5,960,801
Deposits 5,085,168 4,842,389 4,613,810
Shareholders' equity 510,791 489,821 478,960
Common shares outstanding:
Basic 40,223 40,156 40,088
Diluted 41,460 41,328 41,190
AT PERIOD END
Loans $ 4,965,365 $ 4,810,277 $ 4,584,155
Investment securities 980,273 974,524 983,846
Earning assets 6,012,987 5,862,614 5,633,381
Total assets 6,455,290 6,331,136 6,070,596
Deposits 5,309,219 4,976,650 4,748,438
Shareholders' equity 526,734 496,297 485,414
Common shares outstanding 40,269 40,179 40,119
2005 Third
------------------------ Quarter
(in thousands, except per share Fourth Third 2006-2005
data; taxable equivalent) Quarter Quarter Change
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 95,465 $ 89,003
Interest expense 38,576 34,033
----------- -----------
Net interest revenue 56,889 54,970 17%
Provision for loan losses 3,500 3,400
Fee revenue 11,373 12,396 (2)
----------- -----------
Total revenue 64,762 63,966 14
Operating expenses 40,520 41,294 9
----------- -----------
Income before taxes 24,242 22,672 23
Income taxes 9,012 8,374
----------- -----------
Net income $ 15,230 $ 14,298 22
=========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ .39 $ .37 16
Diluted earnings .38 .36 17
Cash dividends declared .07 .07 14
Book value 11.80 11.04 18
Tangible book value (2) 8.94 8.05 26
Key performance ratios:
Return on tangible equity
(1)(2)(3) 18.20% 18.90%
Return on equity (1)(3) 13.30 13.42
Return on assets (3) 1.05 1.01
Net interest margin (3) 4.20 4.17
Efficiency ratio 58.80 61.16
Dividend payout ratio 17.95 18.92
Equity to assets 7.69 7.46
Tangible equity to assets (2) 5.82 5.53
ASSET QUALITY
Allowance for loan losses $ 53,595 $ 51,888
Non-performing assets 12,995 13,565
Net charge-offs 1,793 1,385
Allowance for loan losses to loans 1.22% 1.22%
Non-performing assets to total
assets .22 .24
Net charge-offs to average loans
(3) .16 .13
AVERAGE BALANCES
Loans $ 4,328,613 $ 4,169,170 17
Investment securities 1,004,966 1,008,687 2
Earning assets 5,383,096 5,239,195 13
Total assets 5,769,632 5,608,158 13
Deposits 4,354,275 4,078,437 25
Shareholders' equity 443,746 418,459 22
Common shares outstanding:
Basic 39,084 38,345
Diluted 40,379 39,670
AT PERIOD END
Loans $ 4,398,286 $ 4,254,051 17
Investment securities 990,687 945,922 4
Earning assets 5,470,718 5,302,532 13
Total assets 5,865,756 5,709,666 13
Deposits 4,477,600 4,196,369 27
Shareholders' equity 472,686 424,000 24
Common shares outstanding 40,020 38,383
For the Nine
Months Ended YTD
(in thousands, except per share ------------------------ 2006-2005
data; taxable equivalent) 2006 2005 Change
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 334,327 $ 243,353
Interest expense 147,903 88,850
----------- -----------
Net interest revenue 186,424 154,503 21%
Provision for loan losses 10,900 8,600
Fee revenue 35,880 34,775 3
----------- -----------
Total revenue 211,404 180,678 17
Operating expenses 130,644 114,881 14
----------- -----------
Income before taxes 80,760 65,797 23
Income taxes 30,379 24,285
----------- -----------
Net income $ 50,381 $ 41,512 21
=========== ===========
PERFORMANCE MEASURES
Per common share:
Basic earnings $ 1.25 $ 1.08 16
Diluted earnings 1.22 1.05 16
Cash dividends declared .24 .21 14
Book value 13.07 11.04 18
Tangible book value (2) 10.16 8.05 26
Key performance ratios:
Return on tangible equity
(1)(2)(3) 17.54% 19.30%
Return on equity (1)(3) 13.29 13.51
Return on assets (3) 1.09 1.03
Net interest margin (3) 4.32 4.12
Efficiency ratio 58.67 60.64
Dividend payout ratio 19.20 19.44
Equity to assets 8.01 7.60
Tangible equity to assets (2) 6.27 5.57
ASSET QUALITY
Allowance for loan losses $ 60,901 $ 51,888
Non-performing assets 9,347 13,565
Net charge-offs 3,594 3,908
Allowance for loan losses to loans 1.23% 1.22%
Non-performing assets to total
assets .14 .24
Net charge-offs to average loans
(3) .10 .13
AVERAGE BALANCES
Loans $ 4,688,512 $ 3,970,937 18
Investment securities 1,036,092 983,889 5
Earning assets 5,760,055 5,016,702 15
Total assets 6,158,147 5,371,966 15
Deposits 4,848,849 3,884,733 25
Shareholders' equity 493,307 408,399 21
Common shares outstanding:
Basic 40,156 38,272
Diluted 41,327 39,499
AT PERIOD END
Loans $ 4,965,365 $ 4,254,051 17
Investment securities 980,273 945,922 4
Earning assets 6,012,987 5,302,532 13
Total assets 6,455,290 5,709,666 13
Deposits 5,309,219 4,196,369 27
Shareholders' equity 526,734 424,000 24
Common shares outstanding 40,269 38,383
(1) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which
excludes accumulated other comprehensive income (loss).
(2) Excludes effect of acquisition related intangibles and associated
amortization.
(3) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
(in thousands, except per
share data) 2006 2005 2006 2005
--------- --------- --------- ---------
Interest revenue:
Loans, including fees $ 106,688 $ 77,470 $ 296,133 $ 210,383
Investment securities:
Taxable 11,822 10,340 34,661 29,544
Tax exempt 474 520 1,497 1,573
Federal funds sold and
deposits in banks 365 253 685 662
--------- --------- --------- ---------
Total interest revenue 119,349 88,583 332,976 242,162
--------- --------- --------- ---------
Interest expense:
Deposits:
Demand 10,255 5,187 26,398 13,093
Savings 226 223 680 565
Time 34,694 17,653 89,679 45,680
--------- --------- --------- ---------
Total deposit interest
expense 45,175 23,063 116,757 59,338
Federal funds purchased,
repurchase agreements, &
other short-term borrowings 2,254 1,651 5,814 3,723
Federal Home Loan Bank
advances 5,828 7,181 18,837 19,403
Long-term debt 2,174 2,138 6,495 6,386
--------- --------- --------- ---------
Total interest expense 55,431 34,033 147,903 88,850
--------- --------- --------- ---------
Net interest revenue 63,918 54,550 185,073 153,312
Provision for loan losses 3,700 3,400 10,900 8,600
--------- --------- --------- ---------
Net interest revenue after
provision for loan losses 60,218 51,150 174,173 144,712
--------- --------- --------- ---------
Fee revenue:
Service charges and fees 6,914 6,627 20,095 18,521
Mortgage loan and other
related fees 1,928 2,367 5,149 5,592
Consulting fees 2,040 1,777 5,196 4,944
Brokerage fees 784 571 2,430 1,781
Securities losses, net (382) (153) (385) (155)
Other 862 1,207 3,395 4,092
--------- --------- --------- ---------
Total fee revenue 12,146 12,396 35,880 34,775
--------- --------- --------- ---------
Total revenue 72,364 63,546 210,053 179,487
--------- --------- --------- ---------
Operating expenses:
Salaries and employee
benefits 29,585 26,334 85,535 73,843
Communications and equipment 3,863 3,484 10,970 9,581
Occupancy 2,945 2,743 8,793 8,129
Advertising and public
relations 1,882 1,683 5,718 4,745
Postage, printing and supplies 1,379 1,426 4,184 4,146
Professional fees 938 1,174 3,168 3,283
Amortization of intangibles 503 503 1,509 1,509
Other 3,844 3,947 10,767 9,645
--------- --------- --------- ---------
Total operating expenses 44,939 41,294 130,644 114,881
--------- --------- --------- ---------
Income before income taxes 27,425 22,252 79,409 64,606
Income taxes 10,012 7,954 29,028 23,094
--------- --------- --------- ---------
Net income $ 17,413 $ 14,298 $ 50,381 $ 41,512
========= ========= ========= =========
Net income available to
common shareholders $ 17,408 $ 14,293 $ 50,366 $ 41,494
========= ========= ========= =========
Earnings per common share:
Basic $ 0.43 $ 0.37 $ 1.25 $ 1.08
Diluted 0.42 0.36 1.22 1.05
Dividends per common share .08 .07 .24 .21
Weighted average common shares
outstanding:
Basic 40,223 38,345 40,156 38,272
Diluted 41,460 39,670 41,327 39,499
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
----------- ----------- -----------
September December September
30, 31, 30,
(in thousands, except share and per 2006 2005 2005
share data) ----------- ----------- -----------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 130,038 $ 121,963 $ 139,147
Interest-bearing deposits in
banks 16,032 20,607 28,935
----------- ----------- -----------
Cash and cash equivalents 146,070 142,570 168,082
Securities available for sale 980,273 990,687 945,922
Mortgage loans held for sale 21,522 22,335 28,539
Loans, net of unearned income 4,965,365 4,398,286 4,254,051
Less allowance for loan
losses 60,901 53,595 51,888
----------- ----------- -----------
Loans, net 4,904,464 4,344,691 4,202,163
Premises and equipment, net 129,217 112,887 109,468
Accrued interest receivable 47,336 37,197 36,108
Goodwill and other intangible
assets 120,430 118,651 119,154
Other assets 105,978 96,738 100,230
----------- ----------- -----------
Total assets $ 6,455,290 $ 5,865,756 $ 5,709,666
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $ 666,891 $ 602,525 $ 637,296
Interest-bearing demand 1,340,985 1,264,947 1,180,125
Savings 167,531 175,453 175,864
Time:
Less than $100,000 1,523,843 1,218,277 1,118,102
Greater than $100,000 1,248,738 895,466 790,784
Brokered 361,231 320,932 294,198
----------- ----------- -----------
Total deposits 5,309,219 4,477,600 4,196,369
Federal funds purchased,
repurchase agreements, & other
short-term borrowings 56,026 122,881 163,646
Federal Home Loan Bank advances 412,572 635,616 775,251
Long-term debt 111,869 111,869 111,869
Accrued expenses and other
liabilities 38,870 45,104 38,531
----------- ----------- -----------
Total liabilities 5,928,556 5,393,070 5,285,666
----------- ----------- -----------
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;
40,268,604, 40,019,853 and
38,407,874 shares issued 40,269 40,020 38,408
Common stock issuable; 22,741
and 9,948 shares as of
September 30, 2006 and
December 31, 2005,
respectively 638 271 -
Capital surplus 199,773 193,355 153,712
Retained earnings 291,281 250,563 238,144
Treasury stock; 24,449 shares
as of September 30, 2005, at
cost - - (671)
Accumulated other comprehensive
loss (5,549) (11,845) (5,965)
----------- ----------- -----------
Total shareholders' equity 526,734 472,686 424,000
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 6,455,290 $ 5,865,756 $ 5,709,666
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
2006
---------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- ----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,865,886 $ 106,559 8.69%
Taxable securities (3) 984,189 11,822 4.80
Tax-exempt securities (1) (3) 45,792 780 6.81
Federal funds sold and other
interest-earning assets 46,843 641 5.47
----------- ---------
Total interest-earning assets 5,942,710 119,802 8.01
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (60,606)
Cash and due from banks 116,004
Premises and equipment 125,423
Other assets (3) 226,674
-----------
Total assets $ 6,350,205
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,311,042 10,255 3.10
Savings deposits 170,079 226 .53
Time deposits less than $100,000 1,446,388 16,503 4.53
Time deposits greater than $100,000 1,162,207 14,382 4.91
Brokered deposits 340,301 3,809 4.44
----------- ---------
Total interest-bearing deposits 4,430,017 45,175 4.05
----------- ---------
Federal funds purchased & other borrowings 162,372 2,254 5.51
Federal Home Loan Bank advances 438,875 5,828 5.27
Long-term debt 111,869 2,174 7.71
----------- ---------
Total borrowed funds 713,116 10,256 5.71
----------- ---------
Total interest-bearing liabilities 5,143,133 55,431 4.28
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 655,151
Other liabilities 41,130
-----------
Total liabilities 5,839,414
Shareholders' equity 510,791
-----------
Total liabilities and shareholders'
equity $ 6,350,205
===========
Net interest revenue $ 64,371
=========
Net interest-rate spread 3.73%
====
Net interest margin (4) 4.30%
====
2005
---------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- ----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,169,170 $ 77,112 7.34%
Taxable securities (3) 960,513 10,340 4.31
Tax-exempt securities (1) (3) 48,174 856 7.10
Federal funds sold and other
interest-earning assets 61,338 695 4.53
----------- ---------
Total interest-earning assets 5,239,195 89,003 6.75
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (51,278)
Cash and due from banks 108,784
Premises and equipment 106,347
Other assets (3) 205,110
-----------
Total assets $ 5,608,158
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,164,563 5,187 1.77
Savings deposits 175,833 223 .50
Time deposits less than $100,000 1,074,926 8,439 3.11
Time deposits greater than $100,000 736,217 6,779 3.65
Brokered deposits 307,531 2,435 3.14
----------- ---------
Total interest-bearing deposits 3,459,070 23,063 2.65
----------- ---------
Federal funds purchased & other borrowings 185,233 1,651 3.54
Federal Home Loan Bank advances 779,912 7,181 3.65
Long-term debt 111,869 2,138 7.58
----------- ---------
Total borrowed funds 1,077,014 10,970 4.04
----------- ---------
Total interest-bearing liabilities 4,536,084 34,033 2.98
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 619,367
Other liabilities 34,248
-----------
Total liabilities 5,189,699
Shareholders' equity 418,459
-----------
Total liabilities and shareholders'
equity $ 5,608,158
===========
Net interest revenue $ 54,970
=========
Net interest-rate spread 3.77%
====
Net interest margin (4) 4.17%
====
(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 $2.2 million 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 Nine Months Ended September 30,
2006
---------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- ----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,688,512 $ 295,778 8.43%
Taxable securities (3) 988,504 34,661 4.68
Tax-exempt securities (1) (3) 47,588 2,463 6.90
Federal funds sold and other
interest-earning assets 35,451 1,425 5.36
----------- ---------
Total interest-earning assets 5,760,055 334,327 7.76
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (57,716)
Cash and due from banks 122,603
Premises and equipment 120,664
Other assets (3) 212,541
-----------
Total assets $ 6,158,147
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,280,101 $ 26,398 2.76
Savings deposits 173,448 680 .52
Time deposits less than $100,000 1,354,421 42,604 4.21
Time deposits greater than $100,000 1,068,376 36,938 4.62
Brokered deposits 327,877 10,137 4.13
----------- ---------
Total interest-bearing deposits 4,204,223 116,757 3.71
----------- ---------
Federal funds purchased & other borrowings 152,303 5,814 5.10
Federal Home Loan Bank advances 510,168 18,837 4.94
Long-term debt 111,868 6,495 7.76
----------- ---------
Total borrowed funds 774,339 31,146 5.38
----------- ---------
Total interest-bearing liabilities 4,978,562 147,903 3.97
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 644,626
Other liabilities 41,652
-----------
Total liabilities 5,664,840
Shareholders' equity 493,307
-----------
Total liabilities and shareholders'
equity $ 6,158,147
===========
Net interest revenue $ 186,424
=========
Net interest-rate spread 3.79%
====
Net interest margin (4) 4.32%
====
2005
---------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- ----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 3,970,937 $ 209,378 7.05%
Taxable securities (3) 934,691 29,544 4.21
Tax-exempt securities (1) (3) 49,198 2,589 7.02
Federal funds sold and other
interest-earning assets 61,876 1,842 3.97
----------- ---------
Total interest-earning assets 5,016,702 243,353 6.48
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (49,681)
Cash and due from banks 98,615
Premises and equipment 104,079
Other assets (3) 202,251
-----------
Total assets $ 5,371,966
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts $ 1,116,573 $ 13,093 1.57
Savings deposits 175,302 565 .43
Time deposits less than $100,000 1,032,142 22,208 2.88
Time deposits greater than $100,000 663,751 16,663 3.36
Brokered deposits 322,028 6,809 2.83
----------- ---------
Total interest-bearing deposits 3,309,796 59,338 2.40
----------- ---------
Federal funds purchased & other borrowings 158,249 3,723 3.15
Federal Home Loan Bank advances 778,750 19,403 3.33
Long-term debt 111,868 6,386 7.63
----------- ---------
Total borrowed funds 1,048,867 29,512 3.76
----------- ---------
Total interest-bearing liabilities 4,358,663 88,850 2.73
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 574,937
Other liabilities 29,967
-----------
Total liabilities 4,963,567
Shareholders' equity 408,399
-----------
Total liabilities and shareholders'
equity $ 5,371,966
===========
Net interest revenue $ 154,503
=========
Net interest-rate spread 3.75%
====
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 $19.1 million in 2006 and pretax unrealized gains
of $7,000 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=529A05E8BEBF8131
SOURCE: United Community Banks, Inc.