United Community Banks, Inc. Reports Earnings of $11.5 Million for First Quarter 2012
- Net income of
$11.5 million , or15 cents per share - Pre-tax, pre-credit earnings, excluding one-time items, highest since fourth quarter 2009
- Loan growth continues, up
$18 million from fourth quarter, or 2 percent annualized - Core transaction deposits up
$151 million from fourth quarter, or 21 percent annualized - Capital ratios strengthen
"Momentum continues to build in restoring and improving our financial performance," said
Total loans were
The first quarter provision for loan losses was
First quarter net charge-offs were
Nonperforming assets of
Taxable equivalent net interest revenue of
"Growing quality loan and deposit relationships is a key focus in 2012," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans; yet, our momentum continues to build as the seasoned relationship managers we have added in key markets attract new business. Our success attracting core transaction deposits also has continued, with balances increasing
Fee revenue was
Mortgage fee revenue increased
Excluding foreclosed property costs, first quarter 2012 operating expenses were
Foreclosed property costs for the first quarter of 2012 were
As of
"We are on the path to recovery as indicated by three profitable quarters out of the past four," stated Tallent. "The economy is still weak and work remains to resolve credit problems, though we believe far more of that work is behind us. Looking forward, we expect continued profitability and improved financial performance from revenue enhancements and expense reductions."
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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 2012 2011 --------- ------------------------------------------ (in thousands, except per share First Fourth Third Second First data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter --------- --------- --------- --------- --------- INCOME SUMMARY Interest revenue $ 70,221 $ 71,905 $ 74,543 $ 76,931 $ 75,965 Interest expense 11,357 12,855 15,262 17,985 19,573 --------- --------- --------- --------- --------- Net interest revenue 58,864 59,050 59,281 58,946 56,392 Provision for loan losses 15,000 14,000 36,000 11,000 190,000 Fee revenue 15,379 12,667 11,498 13,905 11,838 --------- --------- --------- --------- --------- Total revenue 59,243 57,717 34,779 61,851 (121,770) Operating expenses 46,955 51,080 46,520 48,728 115,271 --------- --------- --------- --------- --------- Income (loss) before income taxes 12,288 6,637 (11,741) 13,123 (237,041) Income tax expense (benefit) 760 (3,264) (402) 1,095 295 --------- --------- --------- --------- --------- Net income (loss) 11,528 9,901 (11,339) 12,028 (237,336) Preferred dividends and discount accretion 3,030 3,025 3,019 3,016 2,778 --------- --------- --------- --------- --------- Net income (loss) available to common shareholders $ 8,498 $ 6,876 $ (14,358) $ 9,012 $(240,114) ========= ========= ========= ========= ========= PERFORMANCE MEASURES Per common share: Diluted income (loss) $ .15 $ .12 $ (.25) $ .16 $ (13.00) Book value 6.68 6.62 6.77 7.11 2.20 Tangible book value (2) 6.54 6.47 6.61 6.94 1.69 Key performance ratios: Return on equity (1)(3) 8.78% 7.40% (15.06)% 42.60% (526.54)% Return on assets (3) .66 .56 (.64) .66 (13.04) Net interest margin (3) 3.53 3.51 3.55 3.41 3.30 Efficiency ratio 63.31 71.23 65.73 66.88 169.08 Equity to assets 8.19 8.28 8.55 8.06 6.15 Tangible equity to assets (2) 8.08 8.16 8.42 7.93 6.01 Tangible common equity to assets (2) 5.33 5.38 5.65 1.37 2.70 Tangible common equity to risk- weighted assets (2) 8.21 8.25 8.52 8.69 .75 ASSET QUALITY * Non-performing loans $ 129,704 $ 127,479 $ 144,484 $ 71,065 $ 83,769 Foreclosed properties 31,887 32,859 44,263 47,584 54,378 --------- --------- --------- --------- --------- Total non- performing assets (NPAs) 161,591 160,338 188,747 118,649 138,147 Allowance for loan losses 113,601 114,468 146,092 127,638 133,121 Net charge-offs 15,867 45,624 17,546 16,483 231,574 Allowance for loan losses to loans 2.75% 2.79% 3.55% 3.07% 3.17% Net charge-offs to average loans (3) 1.55 4.39 1.68 1.58 20.71 NPAs to loans and foreclosed properties 3.88 3.87 4.54 2.82 3.25 NPAs to total assets 2.25 2.30 2.74 1.66 1.79 AVERAGE BALANCES($ in millions) Loans $ 4,168 $ 4,175 $ 4,194 $ 4,266 $ 4,599 Investment securities 2,153 2,141 2,150 2,074 1,625 Earning assets 6,700 6,688 6,630 6,924 6,902 Total assets 7,045 7,019 7,000 7,363 7,379 Deposits 6,028 6,115 6,061 6,372 6,560 Shareholders' equity 577 581 598 594 454 Common shares - basic (thousands) 57,764 57,646 57,599 25,427 18,466 Common shares - diluted (thousands) 57,764 57,646 57,599 57,543 18,466 AT PERIOD END($ in millions) Loans * $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194 Investment securities 2,202 2,120 2,123 2,188 1,884 Total assets 7,174 6,983 6,894 7,152 7,709 Deposits 6,001 6,098 6,005 6,183 6,598 Shareholders' equity 580 575 583 603 586 Common shares outstanding (thousands) 57,603 57,561 57,510 57,469 20,903 (1) 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). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. * Excludes loans and foreclosed properties covered by loss sharing agreements with theFDIC .UNITED COMMUNITY BANKS, INC. Financial Highlights Selected Financial Information First 2012 2011 Quarter ----------- ----------- (in thousands, except per share First First 2012-2011 data; taxable equivalent) Quarter Quarter Change ----------- ----------- ---------- INCOME SUMMARY Interest revenue $ 70,221 $ 75,965 Interest expense 11,357 19,573 ----------- ----------- Net interest revenue 58,864 56,392 4% Provision for loan losses 15,000 190,000 Fee revenue 15,379 11,838 30 ----------- ----------- Total revenue 59,243 (121,770) Operating expenses 46,955 115,271 (59) ----------- ----------- Income (loss) before income taxes 12,288 (237,041) Income tax expense (benefit) 760 295 ----------- ----------- Net income (loss) 11,528 (237,336) Preferred dividends and discount accretion 3,030 2,778 ----------- ----------- Net income (loss) available to common shareholders $ 8,498 $ (240,114) =========== =========== PERFORMANCE MEASURES Per common share: Diluted income (loss) $ .15 $ (13.00) Book value 6.68 2.20 204 Tangible book value (2) 6.54 1.69 287 Key performance ratios: Return on equity (1)(3) 8.78% (526.54)% Return on assets (3) .66 (13.04) Net interest margin (3) 3.53 3.30 Efficiency ratio 63.31 169.08 Equity to assets 8.19 6.15 Tangible equity to assets (2) 8.08 6.01 Tangible common equity to assets (2) 5.33 2.70 Tangible common equity to risk- weighted assets (2) 8.21 .75 ASSET QUALITY * Non-performing loans $ 129,704 $ 83,769 Foreclosed properties 31,887 54,378 ----------- ----------- Total non-performing assets (NPAs) 161,591 138,147 Allowance for loan losses 113,601 133,121 Net charge-offs 15,867 231,574 Allowance for loan losses to loans 2.75% 3.17% Net charge-offs to average loans (3) 1.55 20.71 NPAs to loans and foreclosed properties 3.88 3.25 NPAs to total assets 2.25 1.79 AVERAGE BALANCES($ in millions) Loans $ 4,168 $ 4,599 (9) Investment securities 2,153 1,625 32 Earning assets 6,700 6,902 (3) Total assets 7,045 7,379 (5) Deposits 6,028 6,560 (8) Shareholders' equity 577 454 27 Common shares - basic (thousands) 57,764 18,466 Common shares - diluted (thousands) 57,764 18,466 AT PERIOD END($ in millions) Loans * $ 4,128 $ 4,194 (2) Investment securities 2,202 1,884 17 Total assets 7,174 7,709 (7) Deposits 6,001 6,598 (9) Shareholders' equity 580 586 (1) Common shares outstanding (thousands) 57,603 20,903 (1) 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). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. * Excludes loans and foreclosed properties covered by loss sharing agreements with theFDIC .UNITED COMMUNITY BANKS, INC. Non-GAAP Performance Measures Reconciliation Selected Financial Information 2012 2011 --------- ------------------------------------------ (in thousands, except per share First Fourth Third Second First data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter --------- --------- --------- --------- --------- Interest revenue reconciliation Interest revenue - taxable equivalent $ 70,221 $ 71,905 $ 74,543 $ 76,931 $ 75,965 Taxable equivalent adjustment (446) (423) (420) (429) (435) --------- --------- --------- --------- --------- Interest revenue (GAAP) $ 69,775 $ 71,482 $ 74,123 $ 76,502 $ 75,530 ========= ========= ========= ========= ========= Net interest revenue reconciliation Net interest revenue - taxable equivalent $ 58,864 $ 59,050 $ 59,281 $ 58,946 $ 56,392 Taxable equivalent adjustment (446) (423) (420) (429) (435) --------- --------- --------- --------- --------- Net interest revenue (GAAP) $ 58,418 $ 58,627 $ 58,861 $ 58,517 $ 55,957 ========= ========= ========= ========= ========= Total revenue reconciliation Total operating revenue $ 59,243 $ 57,717 $ 34,779 $ 61,851 $(121,770) Taxable equivalent adjustment (446) (423) (420) (429) (435) --------- --------- --------- --------- --------- Total revenue (GAAP) $ 58,797 $ 57,294 $ 34,359 $ 61,422 $(122,205) ========= ========= ========= ========= ========= Income (loss) before taxes reconciliation Income (loss) before taxes $ 12,288 $ 6,637 $ (11,741) $ 13,123 $(237,041) Taxable equivalent adjustment (446) (423) (420) (429) (435) --------- --------- --------- --------- --------- Income (loss) before taxes (GAAP) $ 11,842 $ 6,214 $ (12,161) $ 12,694 $(237,476) ========= ========= ========= ========= ========= Income tax (benefit) expense reconciliation Income tax (benefit) expense $ 760 $ (3,264) $ (402) $ 1,095 $ 295 Taxable equivalent adjustment (446) (423) (420) (429) (435) --------- --------- --------- --------- --------- Income tax (benefit) expense (GAAP) $ 314 $ (3,687) $ (822) $ 666 $ (140) ========= ========= ========= ========= ========= Book value per common share reconciliation Tangible book value per common share $ 6.54 $ 6.47 $ 6.61 $ 6.94 $ 1.69 Effect of goodwill and other intangibles .14 .15 .16 .17 .51 --------- --------- --------- --------- --------- Book value per common share (GAAP) $ 6.68 $ 6.62 $ 6.77 $ 7.11 $ 2.20 ========= ========= ========= ========= ========= Average equity to assets reconciliation Tangible common equity to assets 5.33% 5.38% 5.65% 1.37% 2.70% Effect of preferred equity 2.75 2.78 2.77 6.56 3.31 --------- --------- --------- --------- --------- Tangible equity to assets 8.08 8.16 8.42 7.93 6.01 Effect of goodwill and other intangibles .11 .12 .13 .13 .14 --------- --------- --------- --------- --------- Equity to assets (GAAP) 8.19% 8.28% 8.55% 8.06% 6.15% ========= ========= ========= ========= ========= Tangible common equity to risk- weighted assets reconciliation Tangible common equity to risk- weighted assets 8.21% 8.25% 8.52% 8.69% .75% Effect of other comprehensive income .10 (.03) (.29) (.42) (.32) Effect of trust preferred 1.15 1.18 1.19 1.15 1.13 Effect of preferred equity 4.23 4.29 4.33 4.20 5.87 --------- --------- --------- --------- --------- Tier I capital ratio (Regulatory) 13.69% 13.69% 13.75% 13.62% 7.43% ========= ========= ========= ========= =========UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) 2012 2011 -------- ----------------------------------- First Fourth Third Second First (in millions) Quarter Quarter Quarter Quarter Quarter -------- -------- -------- -------- -------- LOANS BY CATEGORY Commercial (sec.by RE) $ 1,843 $ 1,822 $ 1,771 $ 1,742 $ 1,692 Commercial & industrial 440 428 429 428 431 Commercial construction 167 164 169 195 213 -------- -------- -------- -------- -------- Total commercial 2,450 2,414 2,369 2,365 2,336 Residential mortgage 1,131 1,135 1,150 1,177 1,187 Residential construction 436 448 474 502 550 Consumer installment 111 113 117 119 121 -------- -------- -------- -------- -------- Total loans $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194 ======== ======== ======== ======== ======== LOANS BY MARKET North Georgia $ 1,408 $ 1,426 $ 1,478 $ 1,500 $ 1,531 Atlanta MSA 1,239 1,220 1,192 1,188 1,179 North Carolina 588 597 607 626 640 Coastal Georgia 366 346 316 325 312 Gainesville MSA 262 265 272 275 282 East Tennessee 265 256 245 249 250 -------- -------- -------- -------- -------- Total loans $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194 ======== ======== ======== ======== ======== RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 86 $ 88 $ 97 $ 105 $ 116 Land loans 57 61 60 62 69 Lot loans 203 207 216 218 228 -------- -------- -------- -------- -------- Total 346 356 373 385 413 -------- -------- -------- -------- -------- House loans Spec 57 59 64 74 88 Sold 32 33 37 43 49 -------- -------- -------- -------- -------- Total 89 92 101 117 137 -------- -------- -------- -------- -------- Total residential construction $ 435 $ 448 $ 474 $ 502 $ 550 ======== ======== ======== ======== ======== RESIDENTIAL CONSTRUCTION -ATLANTA MSA Dirt loans Acquisition & development $ 17 $ 17 $ 19 $ 20 $ 22 Land loans 13 14 15 16 19 Lot loans 22 22 22 22 24 -------- -------- -------- -------- -------- Total 52 53 56 58 65 -------- -------- -------- -------- -------- House loans Spec 27 27 28 30 34 Sold 7 6 8 9 11 -------- -------- -------- -------- -------- Total 34 33 36 39 45 -------- -------- -------- -------- -------- Total residential construction $ 86 $ 86 $ 92 $ 97 $ 110 ======== ======== ======== ======== ======== (1) Excludes total loans of$47.2 million ,$54.5 million ,$57.8 million ,$70.8 million and$63.3 million as ofMarch 31, 2012 ,December 31, 2011 ,September 30, 2011 ,June 30, 2011 andMarch 31, 2011 , 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) 2012 2011 -------- ----------------- Year Linked over First Fourth First Quarter Year (in millions) Quarter Quarter Quarter Change Change -------- -------- -------- -------- -------- LOANS BY CATEGORY Commercial (sec.by RE) $ 1,843 $ 1,822 $ 1,692 $ 21 $ 151 Commercial & industrial 440 428 431 12 9 Commercial construction 167 164 213 3 (46) -------- -------- -------- Total commercial 2,450 2,414 2,336 36 114 Residential mortgage 1,131 1,135 1,187 (4) (56) Residential construction 436 448 550 (12) (114) Consumer installment 111 113 121 (2) (10) -------- -------- -------- Total loans $ 4,128 $ 4,110 $ 4,194 18 (66) ======== ======== ======== LOANS BY MARKET North Georgia $ 1,408 $ 1,426 $ 1,531 (18) (123) Atlanta MSA 1,239 1,220 1,179 19 60 North Carolina 588 597 640 (9) (52) Coastal Georgia 366 346 312 20 54 Gainesville MSA 262 265 282 (3) (20) East Tennessee 265 256 250 9 15 -------- -------- -------- Total loans $ 4,128 $ 4,110 $ 4,194 18 (66) ======== ======== ======== RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 86 $ 88 $ 116 (2) (30) Land loans 57 61 69 (4) (12) Lot loans 203 207 228 (4) (25) -------- -------- -------- Total 346 356 413 (10) (67) -------- -------- -------- House loans Spec 57 59 88 (2) (31) Sold 32 33 49 (1) (17) -------- -------- -------- Total 89 92 137 (3) (48) -------- -------- -------- Total residential construction $ 435 $ 448 $ 550 (13) (115) ======== ======== ======== RESIDENTIAL CONSTRUCTION -ATLANTA MSA Dirt loans Acquisition & development $ 17 $ 17 $ 22 - (5) Land loans 13 14 19 (1) (6) Lot loans 22 22 24 - (2) -------- -------- -------- Total 52 53 65 (1) (13) -------- -------- -------- House loans Spec 27 27 34 - (7) Sold 7 6 11 1 (4) -------- -------- -------- Total 34 33 45 1 (11) -------- -------- -------- Total residential construction $ 86 $ 86 $ 110 - (24) ======== ======== ======== (1) Excludes total loans of$47.2 million ,$54.5 million ,$57.8 million ,$70.8 million and$63.3 million as ofMarch 31, 2012 ,December 31, 2011 ,September 30, 2011 ,June 30, 2011 andMarch 31, 2011 , respectively, that are covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank .UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality(1) First Quarter 2012 ------------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ----------- ----------- ----------- NPAs BY CATEGORY Commercial (sec.by RE) $ 26,081 $ 10,808 $ 36,889 Commercial & industrial 36,314 - 36,314 Commercial construction 23,319 3,266 26,585 ----------- ----------- ----------- Total commercial 85,714 14,074 99,788 Residential mortgage 18,741 5,882 24,623 Residential construction 24,341 11,931 36,272 Consumer installment 908 - 908 ----------- ----------- ----------- Total NPAs $ 129,704 $ 31,887 $ 161,591 =========== =========== =========== Balance as a % of Unpaid Principal 70.6% 36.1% 59.4% NPAs BY MARKET North Georgia $ 81,117 $ 14,559 $ 95,676 Atlanta MSA 22,321 7,647 29,968 North Carolina 15,765 4,650 20,415 Coastal Georgia 5,622 1,268 6,890 Gainesville MSA 2,210 3,387 5,597 East Tennessee 2,669 376 3,045 ----------- ----------- ----------- Total NPAs $ 129,704 $ 31,887 $ 161,591 =========== =========== =========== NPA ACTIVITY Beginning Balance $ 127,479 $ 32,859 $ 160,338 Loans placed on non-accrual 32,437 - 32,437 Payments received (5,945) - (5,945) Loan charge-offs (14,733) - (14,733) Foreclosures (9,534) 9,534 - Capitalized costs - 329 329 Note / property sales - (8,631) (8,631) Write downs - (2,111) (2,111) Net gains (losses) on sales - (93) (93) ----------- ----------- ----------- Ending Balance $ 129,704 $ 31,887 $ 161,591 =========== =========== =========== (1) Excludes non-performing loans and foreclosed properties 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 & industrial 34,613 - 34,613 Commercial construction 16,655 3,336 19,991 ----------- ----------- ----------- Total commercial 78,590 13,081 91,671 Residential mortgage 22,358 6,927 29,285 Residential construction 25,523 12,851 38,374 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 North Georgia $ 88,600 $ 15,136 $ 103,736 Atlanta MSA 14,480 6,169 20,649 North Carolina 15,100 5,365 20,465 Coastal Georgia 5,248 1,620 6,868 Gainesville MSA 2,069 3,760 5,829 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 .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 & industrial 53,009 - 53,009 Commercial construction 11,370 5,862 17,232 ----------- ----------- ----------- Total commercial 86,377 14,742 101,119 Residential mortgage 22,671 7,960 30,631 Residential construction 34,472 21,561 56,033 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 North Georgia $ 105,078 $ 17,467 $ 122,545 Atlanta MSA 13,350 12,971 26,321 North Carolina 13,243 7,941 21,184 Coastal Georgia 5,600 2,354 7,954 Gainesville MSA 5,311 2,495 7,806 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 .UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality(1) First Quarter Fourth Quarter Third Quarter 2012 2011 2011 ----------------- ----------------- ----------------- Net Net Net Charge- Charge- Charge- Offs to Offs to Offs to Net Average Net Average Net Average Charge- Charge- Charge- (in thousands) Offs Loans(2) Offs Loans(2) Offs Loans(2) -------- -------- -------- -------- -------- -------- NET CHARGE-OFFS BY CATEGORY Commercial (sec.by RE) $ 3,697 .81% $ 4,962 1.09% $ 2,192 .50% Commercial & industrial 669 .62 18,940 17.47 420 .39 Commercial construction 334 .81 3,318 7.88 1,625 3.54 -------- -------- -------- Total commercial 4,700 .78 27,220 4.51 4,237 .71 Residential mortgage 5,375 1.91 5,887 2.04 6,110 2.09 Residential construction 5,314 4.84 12,090 10.36 6,381 5.19 Consumer installment 478 1.72 427 1.47 818 2.75 -------- -------- -------- Total $ 15,867 1.55 $ 45,624 4.39 $ 17,546 1.68 ======== ======== ======== NET CHARGE-OFFS BY MARKET North Georgia $ 9,022 2.56% $ 34,970 9.46% $ 8,124 2.16% Atlanta MSA 2,729 .89 4,195 1.37 2,813 .94 North Carolina 1,679 1.14 3,180 2.10 3,608 2.31 Coastal Georgia 1,329 1.53 335 .41 709 .88 Gainesville MSA 883 1.35 2,572 3.84 1,804 2.64 East Tennessee 225 .34 372 .59 488 .78 -------- -------- -------- Total $ 15,867 1.55 $ 45,624 4.39 $ 17,546 1.68 ======== ======== ======== (1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with theFDIC , related to the acquisition ofSouthern Community Bank . (2) Annualized.UNITED COMMUNITY BANKS, INC. Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, ------------------------ (in thousands, except per share data) 2012 2011 ----------- ----------- Interest revenue: Loans, including fees $ 55,759 $ 61,107 Investment securities, including tax exempt of $250 and $259 13,004 13,604 Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks 1,012 819 ----------- ----------- Total interest revenue 69,775 75,530 ----------- ----------- Interest expense: Deposits: NOW 637 1,324 Money market 641 2,028 Savings 37 77 Time 6,159 11,732 ----------- ----------- Total deposit interest expense 7,474 15,161 Federal funds purchased, repurchase agreements and other short-term borrowings 1,045 1,042 Federal Home Loan Bank advances 466 590 Long-term debt 2,372 2,780 ----------- ----------- Total interest expense 11,357 19,573 ----------- ----------- Net interest revenue 58,418 55,957 Provision for loan losses 15,000 190,000 ----------- ----------- Net interest revenue after provision for loan losses 43,418 (134,043) ----------- ----------- Fee revenue: Service charges and fees 7,783 6,720 Mortgage loan and other related fees 2,099 1,494 Brokerage fees 813 677 Securities gains, net 557 55 Loss from prepayment of debt (482) - Other 4,609 2,892 ----------- ----------- Total fee revenue 15,379 11,838 ----------- ----------- Total revenue 58,797 (122,205) ----------- ----------- Operating expenses: Salaries and employee benefits 25,225 24,924 Communications and equipment 3,155 3,344 Occupancy 3,771 4,074 Advertising and public relations 846 978 Postage, printing and supplies 979 1,118 Professional fees 1,975 3,330 Foreclosed property 3,825 64,899 FDIC assessments and other regulatory charges 2,510 5,413 Amortization of intangibles 732 762 Other 3,937 6,429 ----------- ----------- Total operating expenses 46,955 115,271 ----------- ----------- Net income (loss) before income taxes 11,842 (237,476) Income tax expense (benefit) 314 (140) ----------- ----------- Net income (loss) 11,528 (237,336) Preferred stock dividends and discount accretion 3,030 2,778 ----------- ----------- Net income (loss) available to common shareholders $ 8,498 $ (240,114) =========== =========== Earnings (loss) per common share - Basic / Diluted $ .15 $ (13.00) Weighted average common shares outstanding -Basic / Diluted 57,764 18,466UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheet (in thousands, except share and March 31, December 31, March 31, per share data) 2012 2011 2011 ------------- ------------- ------------- (unaudited) (unaudited) (unaudited) ASSETS Cash and due from banks $ 53,147 $ 53,807 $ 153,891 Interest-bearing deposits in banks 139,439 139,609 465,656 Federal funds sold, reverse repurchase agreements, commercial paper and short- term investments 235,000 185,000 470,087 ------------- ------------- ------------- Cash and cash equivalents 427,586 378,416 1,089,634 Securities available for sale 1,898,815 1,790,047 1,638,494 Securities held to maturity (fair value$318,490 , $343,531 and $248,361) 303,636 330,203 245,430 Loans held for sale - - 80,629 Mortgage loans held for sale 24,809 23,881 25,364 Loans, net of unearned income 4,127,566 4,109,614 4,194,372 Less allowance for loan losses 113,601 114,468 133,121 ------------- ------------- ------------- Loans, net 4,013,965 3,995,146 4,061,251 Assets covered by loss sharing agreements with the FDIC 72,854 78,145 125,789 Premises and equipment, net 174,419 175,088 179,143 Bank owned life insurance 80,956 80,599 79,777 Accrued interest receivable 20,292 20,693 21,687 Goodwill and other intangible assets 7,695 8,428 10,684 Foreclosed property 31,887 32,859 54,378 Unsettled securities sales 43,527 - - Other assets 73,252 69,915 97,228 ------------- ------------- ------------- Total assets $ 7,173,693 $ 6,983,420 $ 7,709,488 ============= ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Demand $ 1,101,757 $ 992,109 $ 864,708 NOW 1,389,016 1,509,896 1,320,136 Money market 1,123,734 1,038,778 967,938 Savings 214,150 199,007 193,591 Time: Less than $100,000 1,207,479 1,332,394 1,576,505 Greater than $100,000 796,882 847,152 990,289 Brokered 167,521 178,647 684,581 ------------- ------------- ------------- Total deposits 6,000,539 6,097,983 6,597,748 Federal funds purchased, repurchase agreements, and other short-term borrowings 101,925 102,577 102,107Federal Home Loan Bank advances 215,125 40,625 55,125 Long-term debt 120,245 120,225 150,166 Unsettled securities purchases 119,565 10,325 177,532 Accrued expenses and other liabilities 36,755 36,199 40,766 ------------- ------------- ------------- Total liabilities 6,594,154 6,407,934 7,123,444 ------------- ------------- ------------- Shareholders' equity: Preferred stock,$1 par value; 10,000,000 shares authorized; Series A;$10 stated value; 21,700 shares issued and outstanding 217 217 217 Series B;$1,000 stated value; 180,000 shares issued and outstanding 177,451 177,092 176,049 Series D;$1,000 stated value; 16,613 shares issued and outstanding 16,613 16,613 16,613 Series F;$1,000 stated value; 195,872 shares issued and outstanding - - 195,872 Series G;$1,000 stated value; 151,185 shares issued and outstanding - - 151,185 Common stock,$1 par value; 100,000,000 shares authorized; 41,688,647, 41,647,100 and 20,903,111 shares issued and outstanding 41,689 41,647 20,903 Common stock, non-voting,$1 par value; 30,000,000 shares authorized; 15,914,209 shares issued and outstanding 15,914 15,914 - Common stock issuable; 90,126, 93,681 and 79,428 shares 2,948 3,233 3,681 Capital surplus 1,056,135 1,054,940 738,963 Accumulated deficit (722,363) (730,861) (732,390) Accumulated other comprehensive (loss) income (9,065) (3,309) 14,951 ------------- ------------- ------------- Total shareholders' equity 579,539 575,486 586,044 ------------- ------------- ------------- Total liabilities and shareholders' equity $ 7,173,693 $ 6,983,420 $ 7,709,488 ============= ============= =============UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended March 31, 2012 ---------------------------- Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate ----------- --------- ----- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $ 4,168,440 $ 55,842 5.39% Taxable securities (3) 2,127,794 12,754 2.40 Tax-exempt securities (1)(3) 25,438 410 6.45 Federal funds sold and other interest- earning assets 377,988 1,215 1.29 ----------- --------- Total interest-earning assets 6,699,660 70,221 4.21 ----------- --------- Non-interest-earning assets: Allowance for loan losses (117,803) Cash and due from banks 54,664 Premises and equipment 174,849 Other assets (3) 233,676 ----------- Total assets $ 7,045,046 =========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $ 1,458,112 637 .18 Money market 1,069,658 641 .24 Savings 205,402 37 .07 Time less than $100,000 1,271,351 3,026 .96 Time greater than $100,000 821,164 2,415 1.18 Brokered 161,335 718 1.79 ----------- --------- Total interest-bearing deposits 4,987,022 7,474 .60 ----------- --------- Federal funds purchased and other borrowings 102,258 1,045 4.11 Federal Home Loan Bank advances 138,372 466 1.35 Long-term debt 120,237 2,372 7.93 ----------- --------- Total borrowed funds 360,867 3,883 4.33 ----------- --------- Total interest-bearing liabilities 5,347,889 11,357 .85 --------- Non-interest-bearing liabilities: Non-interest-bearing deposits 1,040,587 Other liabilities 79,612 ----------- Total liabilities 6,468,088 Shareholders' equity 576,958 ----------- Total liabilities and shareholders' equity $ 7,045,046 =========== Net interest revenue $ 58,864 ========= Net interest-rate spread 3.36% ===== Net interest margin(4) 3.53% ===== (1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rateused 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$23.6 million in 2012 and$27.2 million in 2011 are includedin other assets for purposes of this presentation. (4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended March 31, 2011 ---------------------------- Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate ----------- --------- ----- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $ 4,598,860 $ 61,070 5.39% Taxable securities (3) 1,599,481 13,345 3.34 Tax-exempt securities (1)(3) 25,827 424 6.57 Federal funds sold and other interest- earning assets 677,453 1,126 .66 ----------- --------- Total interest-earning assets 6,901,621 75,965 4.45 ----------- --------- Non-interest-earning assets: Allowance for loan losses (169,113) Cash and due from banks 134,341 Premises and equipment 179,353 Other assets (3) 332,827 ----------- Total assets $ 7,379,029 =========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $ 1,373,142 1,324 .39 Money market 928,542 2,028 .89 Savings 187,423 77 .17 Time less than $100,000 1,540,342 5,451 1.44 Time greater than $100,000 990,881 4,151 1.70 Brokered 698,288 2,130 1.24 ----------- --------- Total interest-bearing deposits 5,718,618 15,161 1.08 ----------- --------- Federal funds purchased and other borrowings 101,097 1,042 4.18 Federal Home Loan Bank advances 55,125 590 4.34 Long-term debt 150,157 2,780 7.51 ----------- --------- Total borrowed funds 306,379 4,412 5.84 ----------- --------- Total interest-bearing liabilities 6,024,997 19,573 1.32 --------- Non-interest-bearing liabilities: Non-interest-bearing deposits 841,351 Other liabilities 58,634 ----------- Total liabilities 6,924,982 Shareholders' equity 454,047 ----------- Total liabilities and shareholders' equity $ 7,379,029 =========== Net interest revenue $ 56,392 ========= Net interest-rate spread 3.13% ===== Net interest margin(4) 3.30% ===== (1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate. (2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale. (3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of$23.6 million in 2012 and$27.2 million in 2011 are included in other assets for purposes of this presentation. (4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
For more information:Rex S. Schuette Chief Financial Officer (706) 781-2266 Email Contact
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