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United Community Banks, Inc. Reports Earnings of $9.3 Million for Fourth Quarter 2012
United Community Banks, Inc. Reports Earnings of $9.3 Million for Fourth Quarter 2012
Jan 24, 2013
- Net income of
$9.3 million , or11 cents per share - Loans up
$37.2 million from third quarter, or 4 percent annualized - Core transaction deposits up
$75.2 million in fourth quarter, or 10 percent annualized - Solid improvement in credit quality
"We had another positive quarter and a very productive year in rebuilding our core earnings and positioning United for future growth," said
Tallent continued, "We grew our loan portfolio by
"This was a good way to end a successful year," Tallent stated. "During 2012, we achieved
The fourth quarter provision for loan losses was
"The inflow of nonperforming loans in the fourth quarter was
Taxable equivalent net interest revenue totaled
"The lower yield on our loan portfolio reflects ongoing pricing pressure on new and renewed loans," Tallent continued. "Our investment securities interest decline was due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities with a focus on floating-rate securities to alleviate market and duration risk. Floating-rate securities, which account for 38 percent of the total investment securities portfolio, improve our interest sensitivity position by reducing our exposure to rising interest rates," Tallent continued.
The taxable equivalent net interest margin was down 16 basis points from the third quarter and 7 basis points from a year ago to 3.44 percent. "Five of the 16 basis point linked-quarter margin decline was due to the overlap in the replacement of maturing subordinated debt," stated Tallent. "Another five basis points was due to the scheduled repricing of certain corporate bonds from a fixed to floating rate. These floating rate securities were part of a planned strategy to maintain a neutral to slightly asset-sensitive interest rate position. The balance of the decrease was due to a new loan product offering with a low introductory rate that will reprice in 2013 and continued loan pricing pressures."
Fee revenue was
Other fee revenue was down
Operating expenses, excluding foreclosed property costs, were
Foreclosed property costs for the fourth quarter of 2012 were
As of
"By every measure, 2012 has been a year of significant improvement for
"We know that challenges remain as the economy continues to be sluggish and rates are at record lows," Tallent continued. "At the same time we expect credit measures to continue to improve, and this will translate into lower levels of charge-offs and provisioning. We see opportunities to grow our mortgage and advisory services businesses, and will look to expand both. We believe we can grow our loan portfolio and we will accomplish this by continuing to add lenders in key markets, as well as expanding into new markets, like
Tallent concluded, "We constantly evaluate and find ways to improve this company -- to make it more productive and efficient while continuing to deliver the best customer service in the industry. Ultimately we are committed to delivering superior financial results on behalf of our shareholders. We are committed, we are up to the challenge, and we look ahead with determination and optimism."
Conference Call
United will hold a conference call today,
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 -------------------------------------- -------- 2012 2011 -------------------------------------- -------- (in thousands, except per share data; taxable data; Fourth Third Second First Fourth taxable equivalent) Quarter Quarter Quarter Quarter Quarter -------- -------- -------- -------- -------- INCOME SUMMARY Interest revenue $ 64,450 $ 65,978 $ 66,780 $ 70,221 $ 71,905 Interest expense 8,422 8,607 9,944 11,357 12,855 -------- -------- -------- -------- -------- Net interest revenue 56,028 57,371 56,836 58,864 59,050 Provision for loan losses 14,000 15,500 18,000 15,000 14,000 Fee revenue 14,761 13,764 12,867 15,379 12,667 -------- -------- -------- -------- -------- Total revenue 56,789 55,635 51,703 59,243 57,717 Operating expenses 46,726 44,783 44,310 46,955 51,080 -------- -------- -------- -------- -------- Income (loss) before income taxes 10,063 10,852 7,393 12,288 6,637 Income tax expense (benefit) 802 284 894 760 (3,264) -------- -------- -------- -------- -------- Net income (loss) 9,261 10,568 6,499 11,528 9,901 Preferred dividends and discount accretion 3,045 3,041 3,032 3,030 3,025 -------- -------- -------- -------- -------- Net income (loss) available to common shareholders $ 6,216 $ 7,527 $ 3,467 $ 8,498 $ 6,876 ======== ======== ======== ======== ======== PERFORMANCE MEASURES Per common share: Diluted income (loss) $ .11 $ .13 $ .06 $ .15 $ .12 Book value 6.74 6.75 6.61 6.68 6.62 Tangible book value (2) 6.64 6.64 6.48 6.54 6.47 Key performance ratios: Return on equity (1)(3) 6.03% 7.43% 3.51% 8.78% 7.40% Return on assets (3) .54 .63 .37 .66 .56 Net interest margin (3) 3.44 3.60 3.43 3.53 3.51 Efficiency ratio 66.04 62.95 63.84 63.31 71.23 Equity to assets 8.63 8.75 8.33 8.19 8.28 Tangible equity to assets (2) 8.55 8.66 8.24 8.08 8.16 Tangible common equity to assets (2) 5.67 5.73 5.45 5.33 5.38 Tangible common equity to risk- weighted assets (2) 8.33 8.44 8.37 8.21 8.25 ASSET QUALITY * Non-performing loans $109,894 $115,001 $115,340 $129,704 $127,479 Foreclosed properties 18,264 26,958 30,421 31,887 32,859 -------- -------- -------- -------- -------- Total non-performing assets (NPAs) 128,158 141,959 145,761 161,591 160,338 Allowance for loan losses 107,137 107,642 112,705 113,601 114,468 Net charge-offs 14,505 20,563 18,896 15,867 45,624 Allowance for loan losses to loans 2.57% 2.60% 2.74% 2.75% 2.79% Net charge-offs to average loans (3) 1.39 1.99 1.85 1.55 4.39 NPAs to loans and foreclosed properties 3.06 3.41 3.51 3.88 3.87 NPAs to total assets 1.88 2.12 2.16 2.25 2.30 AVERAGE BALANCES($ in millions) Loans $ 4,191 $ 4,147 $ 4,156 $ 4,168 $ 4,175 Investment securities 2,088 1,971 2,145 2,153 2,141 Earning assets 6,482 6,346 6,665 6,700 6,688 Total assets 6,778 6,648 6,993 7,045 7,019 Deposits 5,873 5,789 5,853 6,028 6,115 Shareholders' equity 585 582 583 577 581 Common shares - basic (thousands) 57,971 57,880 57,840 57,764 57,646 Common shares - diluted (thousands) 57,971 57,880 57,840 57,764 57,646 AT PERIOD END($ in millions) Loans * $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110 Investment securities 2,079 2,025 1,984 2,202 2,120 Total assets 6,802 6,699 6,737 7,174 6,983 Deposits 5,952 5,823 5,822 6,001 6,098 Shareholders' equity 585 585 576 580 575 Common shares outstanding (thousands) 57,741 57,710 57,641 57,603 57,561 (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 -------------------------------------------------------- Fourth (in thousands, 2012 2011 Quarter For the Twelve YTD except per share -------- -------- 2012- Months Ended 2012- data; taxable Fourth Fourth 2011 ------------------ 2011 equivalent) Quarter Quarter Change 2012 2011 Change -------- -------- ------- -------- --------- ------- INCOME SUMMARY Interest revenue $ 64,450 $ 71,905 $267,429 $ 299,344 Interest expense 8,422 12,855 38,330 65,675 -------- -------- -------- --------- Net interest revenue 56,028 59,050 (5)% 229,099 233,669 (2)% Provision for loan losses 14,000 14,000 62,500 251,000 Fee revenue 14,761 12,667 17 56,771 49,908 14 -------- -------- -------- --------- Total revenue 56,789 57,717 223,370 32,577 Operating expenses 46,726 51,080 (9) 182,774 261,599 (30) -------- -------- -------- --------- Income (loss) before income taxes 10,063 6,637 52 40,596 (229,022) Income tax expense (benefit) 802 (3,264) 2,740 (2,276) -------- -------- -------- --------- Net income (loss) 9,261 9,901 (6) 37,856 (226,746) Preferred dividends and discount accretion 3,045 3,025 12,148 11,838 -------- -------- -------- --------- Net income (loss) available to common shareholders $ 6,216 $ 6,876 (10) $ 25,708 $(238,584) ======== ======== ======== ========= PERFORMANCE MEASURES Per common share: Diluted income (loss) $ .11 $ .12 (8) $ .44 $ (5.97) Book value 6.74 6.62 2 6.74 6.62 2 Tangible book value (2) 6.64 6.47 3 6.64 6.47 3 Key performance ratios: Return on equity (1)(3) 6.03% 7.40% 6.43% (93.57)% Return on assets (3) .54 .56 .55 (3.15) Net interest margin (3) 3.44 3.51 3.50 3.44 Efficiency ratio 66.04 71.23 64.02 92.27 Equity to assets 8.63 8.28 8.47 7.75 Tangible equity to assets (2) 8.55 8.16 8.38 7.62 Tangible common equity to assets (2) 5.67 5.38 5.54 3.74 Tangible common equity to risk- weighted assets (2) 8.33 8.25 8.33 8.25 ASSET QUALITY * Non-performing loans $109,894 $127,479 $109,894 $ 127,479 Foreclosed properties 18,264 32,859 18,264 32,859 -------- -------- -------- --------- Total non- performing assets (NPAs) 128,158 160,338 128,158 160,338 Allowance for loan losses 107,137 114,468 107,137 114,468 Net charge-offs 14,505 45,624 69,831 311,227 Allowance for loan losses to loans 2.57% 2.79% 2.57% 2.79% Net charge-offs to average loans (3) 1.39 4.39 1.69 7.33 NPAs to loans and foreclosed properties 3.06 3.87 3.06 3.87 NPAs to total assets 1.88 2.30 1.88 2.30 AVERAGE BALANCES ($ in millions) Loans $ 4,191 $ 4,175 - $ 4,166 $ 4,307 (3) Investment securities 2,088 2,141 (2) 2,089 1,999 5 Earning assets 6,482 6,688 (3) 6,547 6,785 (4) Total assets 6,778 7,019 (3) 6,865 7,189 (5) Deposits 5,873 6,115 (4) 5,885 6,275 (6) Shareholders' equity 585 581 1 582 557 4 Common shares - basic (thousands) 57,971 57,646 57,857 39,943 Common shares - diluted (thousands) 57,971 57,646 57,857 39,943 AT PERIOD END ($ in millions) Loans * $ 4,175 $ 4,110 2 $ 4,175 $ 4,110 2 Investment securities 2,079 2,120 (2) 2,079 2,120 (2) Total assets 6,802 6,983 (3) 6,802 6,983 (3) Deposits 5,952 6,098 (2) 5,952 6,098 (2) Shareholders' equity 585 575 2 585 575 2 Common shares outstanding (thousands) 57,741 57,561 57,741 57,561 (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. Selected Financial Information For the Years EndedDecember 31 , --------------------------------------------------------------------------- (in thousands, except per share data; taxable equivalent) 2012 2011 2010 2009 2008 --------- --------- --------- --------- --------- INCOME SUMMARY Net interest revenue $ 229,099 $ 233,669 $ 243,052 $ 245,227 $ 238,704 Operating provision for loan losses (1) 62,500 251,000 234,750 310,000 184,000 Operating fee revenue (2) 56,771 49,908 48,548 50,964 46,081 --------- --------- --------- --------- --------- Total operating revenue (1)(2) 223,370 32,577 56,850 (13,809) 100,785 Operating expenses (3) 182,774 261,599 242,952 217,050 200,335 Loss on sale of nonperforming assets - - 45,349 - - --------- --------- --------- --------- --------- Operating income (loss) from continuing operations before taxes 40,596 (229,022) (231,451) (230,859) (99,550) Operating income taxes 2,740 (2,276) 73,218 (91,754) (35,651) --------- --------- --------- --------- --------- Net operating income (loss) from continuing operations 37,856 (226,746) (304,669) (139,105) (63,899) 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 - - Net income (loss) from discontinued operations - - (101) 513 449 Gain from sale of subsidiary, net of income taxes and selling costs - - 1,266 - - --------- --------- --------- --------- --------- Net income (loss) 37,856 (226,746) (502,344) (228,327) (63,450) Preferred dividends and discount accretion 12,148 11,838 10,316 10,242 724 --------- --------- --------- --------- --------- Net income (loss) available to common shareholders $ 25,708 $(238,584) $(512,660) $(238,569) $ (64,174) ========= ========= ========= ========= ========= PERFORMANCE MEASURES Per common share: Diluted operating earnings (loss) from continuing operations (1)(2)(3) $ .44 $ (5.97) $ (16.64) $ (12.37) $ (6.82) Diluted earnings (loss) from continuing operations .44 (5.97) (27.15) (19.80) (6.82) Diluted earnings (loss) .44 (5.97) (27.09) (19.76) (6.77) Cash dividends declared (rounded) - - - - .87 Stock dividends 3 for 2 for declared (6) - - - 130 130 Book value 6.74 6.62 15.40 41.78 84.75 Tangible book value (5) 6.64 6.47 14.80 30.09 51.93 Key performance ratios: Return on equity (4) 6.43 (93.57)% (85.08)% (34.40)% (7.82)% Return on assets .55 (3.15) (6.61) (2.76) (.76) Net interest margin 3.50 3.44 3.56 3.29 3.18 Operating efficiency ratio from continuing operations (2)(3) 64.02 92.27 98.98 73.97 70.00 Equity to assets 8.47 7.75 10.77 11.12 10.22 Tangible equity to assets (5) 8.38 7.62 8.88 8.33 6.67 Tangible common equity to assets (5) 5.54 3.74 6.52 6.15 6.57 Tangible common equity to risk- weighted assets (5) 8.33 8.25 5.64 10.39 8.34 ASSET QUALITY * Non-performing loans $ 109,894 $ 127,479 $ 179,094 $ 264,092 $ 190,723 Foreclosed properties 18,264 32,859 142,208 120,770 59,768 --------- --------- --------- --------- --------- Total non- performing assets (NPAs) 128,158 160,338 321,302 384,862 250,491 Allowance for loan losses 107,137 114,468 174,695 155,602 122,271 Operating net charge-offs (1) 69,831 311,227 215,657 276,669 151,152 Allowance for loan losses to loans 2.57% 2.79% 3.79% 3.02% 2.14% Operating net charge-offs to average loans (1) 1.69 7.33 4.42 5.03 2.57 NPAs to loans and foreclosed properties 3.06 3.87 6.77 7.30 4.35 NPAs to total assets 1.88 2.30 4.42 4.81 2.92 AVERAGE BALANCES ($ in millions) Loans $ 4,166 $ 4,307 $ 4,961 $ 5,548 $ 5,891 Investment securities 2,089 1,999 1,453 1,656 1,489 Earning assets 6,547 6,785 6,822 7,465 7,504 Total assets 6,865 7,189 7,605 8,269 8,319 Deposits 5,885 6,275 6,373 6,713 6,524 Shareholders' equity 582 557 819 920 850 Common shares - Basic (thousands) 57,857 39,943 18,925 12,075 9,474 Common shares - Diluted (thousands) 57,857 39,943 18,925 12,075 9,474 AT YEAR END ($ in millions) Loans * $ 4,175 $ 4,110 $ 4,604 $ 5,151 $ 5,705 Investment securities 2,079 2,120 1,490 1,530 1,617 Total assets 6,802 6,983 7,276 8,000 8,592 Deposits 5,952 6,098 6,469 6,628 7,004 Shareholders' equity 585 575 469 962 989 Common shares outstanding (thousands) 57,741 57,561 18,937 18,809 9,602 (1) Excludes the subsequent recovery of$11.8 million in previously recognized fraud related loan losses 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 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 income (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) 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. Non-GAAP Performance Measures Reconciliation Selected Financial Information ------------------------------------------- 2012 2011 ---------------------------------- ------- (in thousands, except per share Fourth Third Second First Fourth data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter ------- ------- ------- ------- ------- Interest revenue reconciliation Interest revenue - taxable equivalent $64,450 $65,978 $66,780 $70,221 $71,905 Taxable equivalent adjustment (381) (419) (444) (446) (423) ------- ------- ------- ------- ------- Interest revenue (GAAP) $64,069 $65,559 $66,336 $69,775 $71,482 ======= ======= ======= ======= ======= Net interest revenue reconciliation Net interest revenue - taxable equivalent $56,028 $57,371 $56,836 $58,864 $59,050 Taxable equivalent adjustment (381) (419) (444) (446) (423) ------- ------- ------- ------- ------- Net interest revenue (GAAP) $55,647 $56,952 $56,392 $58,418 $58,627 ======= ======= ======= ======= ======= Provision for loan losses reconciliation Operating provision for loan losses $14,000 $15,500 $18,000 $15,000 $14,000 Partial recovery of special fraud-related loan loss - - - - - ------- ------- ------- ------- ------- Provision for loan losses (GAAP) $14,000 $15,500 $18,000 $15,000 $14,000 ======= ======= ======= ======= ======= Fee revenue reconciliation Operating fee revenue $14,761 $13,764 $12,867 $15,379 $12,667 Gain from acquisition - - - - - ------- ------- ------- ------- ------- Fee revenue (GAAP) $14,761 $13,764 $12,867 $15,379 $12,667 ======= ======= ======= ======= ======= Total revenue reconciliation Total operating revenue $56,789 $55,635 $51,703 $59,243 $57,717 Taxable equivalent adjustment (381) (419) (444) (446) (423) Gain from acquisition - - - - - Partial recovery of special fraud-related loan loss - - - - - ------- ------- ------- ------- ------- Total revenue (GAAP) $56,408 $55,216 $51,259 $58,797 $57,294 ======= ======= ======= ======= ======= Expense reconciliation Operating expense $46,726 $44,783 $44,310 $46,955 $51,080 Noncash goodwill impairment charge - - - - - Severance costs - - - - - ------- ------- ------- ------- ------- Operating expense (GAAP) $46,726 $44,783 $44,310 $46,955 $51,080 ======= ======= ======= ======= ======= Income (loss) before taxes reconciliation Income (loss) before taxes $10,063 $10,852 $ 7,393 $12,288 $ 6,637 Taxable equivalent adjustment (381) (419) (444) (446) (423) Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - Partial recovery of special fraud-related loan loss - - - - - ------- ------- ------- ------- ------- Income (loss) before taxes (GAAP) $ 9,682 $10,433 $ 6,949 $11,842 $ 6,214 ======= ======= ======= ======= ======= Income tax (benefit) expense reconciliation Income tax (benefit) expense $ 802 $ 284 $ 894 $ 760 $(3,264) Taxable equivalent adjustment (381) (419) (444) (446) (423) Gain from acquisition, tax expense - - - - - Severance costs, tax benefit - - - - - ------- ------- ------- ------- ------- Income tax (benefit) expense (GAAP) $ 421 $ (135) $ 450 $ 314 $(3,687) ======= ======= ======= ======= ======= Diluted earnings (loss) from continuing operations per common share reconciliation Diluted operating earnings (loss) from continuing operations per common share $ .11 $ .13 $ .06 $ .15 $ .12 Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - Partial recovery of special fraud-related loan loss - - - - - ------- ------- ------- ------- ------- Diluted earnings (loss) from continuing operations per common share (GAAP) $ .11 $ .13 $ .06 $ .15 $ .12 ======= ======= ======= ======= ======= Book value per common share reconciliation Tangible book value per common share $ 6.64 $ 6.64 $ 6.48 $ 6.54 $ 6.47 Effect of goodwill and other intangibles .10 .11 .13 .14 .15 ------- ------- ------- ------- ------- Book value per common share (GAAP) $ 6.74 $ 6.75 $ 6.61 $ 6.68 $ 6.62 ======= ======= ======= ======= ======= Efficiency ratio from continuing operations reconciliation Operating efficiency ratio from continuing operations 66.04% 62.95% 63.84% 63.31% 71.23% Gain from acquisition - - - - - Noncash goodwill impairment charge - - - - - Severance costs - - - - - ------- ------- ------- ------- ------- Efficiency ratio from continuing operations (GAAP) 66.04% 62.95% 63.84% 63.31% 71.23% ======= ======= ======= ======= ======= Average equity to assets reconciliation Tangible common equity to assets 5.67% 5.73% 5.45% 5.33% 5.38% Effect of preferred equity 2.88 2.93 2.79 2.75 2.78 ------- ------- ------- ------- ------- Tangible equity to assets 8.55 8.66 8.24 8.08 8.16 Effect of goodwill and other intangibles .08 .09 .09 .11 .12 ------- ------- ------- ------- ------- Equity to assets (GAAP) 8.63% 8.75% 8.33% 8.19% 8.28% ======= ======= ======= ======= ======= Tangible common equity to risk- weighted assets reconciliation Tangible common equity to risk- weighted assets 8.33% 8.44% 8.37% 8.21% 8.25% Effect of other comprehensive income .51 .36 .28 .10 (.03) Effect of deferred tax limitation - - - - - Effect of trust preferred 1.15 1.17 1.19 1.15 1.18 Effect of preferred equity 4.24 4.29 4.35 4.23 4.29 ------- ------- ------- ------- ------- Tier I capital ratio (Regulatory) 14.23% 14.26% 14.19% 13.69% 13.69% ======= ======= ======= ======= ======= Net charge-offs reconciliation Operating net charge-offs $14,505 $20,563 $18,896 $15,867 $45,624 Subsequent partial recovery of fraud-related charge-off - - - - - ------- ------- ------- ------- ------- Net charge-offs (GAAP) $14,505 $20,563 $18,896 $15,867 $45,624 ======= ======= ======= ======= ======= Net charge-offs to average loans reconciliation Operating net charge-offs to average loans 1.39% 1.99% 1.85% 1.55% 4.39% Subsequent partial recovery of fraud-related charge-off - - - - - ------- ------- ------- ------- ------- Net charge-offs to average loans (GAAP) 1.39% 1.99% 1.85% 1.55% 4.39% ======= ======= ======= ======= =======UNITED COMMUNITY BANKS, INC. Non-GAAP Performance Measures Reconciliation Selected Financial Information ----------------------------------------------------- (in thousands, except For the Twelve per share Months Ended data; taxable ----------------------------------------------------- equivalent) 2012 2011 2010 2009 2008 --------- --------- --------- --------- --------- Interest revenue reconciliation Interest revenue - taxable equivalent $ 267,429 $ 299,344 $ 343,123 $ 404,961 $ 466,969 Taxable equivalent adjustment (1,690) (1,707) (2,001) (2,132) (2,261) --------- --------- --------- --------- --------- Interest revenue (GAAP) $ 265,739 $ 297,637 $ 341,122 $ 402,829 $ 464,708 ========= ========= ========= ========= ========= Net interest revenue reconciliation Net interest revenue - taxable equivalent $ 229,099 $ 233,669 $ 243,052 $ 245,227 $ 238,704 Taxable equivalent adjustment (1,690) (1,707) (2,001) (2,132) (2,261) --------- --------- --------- --------- --------- Net interest revenue (GAAP) $ 227,409 $ 231,962 $ 241,051 $ 243,095 $ 236,443 ========= ========= ========= ========= ========= Provision for loan losses reconciliation Operating provision for loan losses $ 62,500 $ 251,000 $ 234,750 $ 310,000 $ 184,000 Partial recovery of special fraud- related loan loss - - (11,750) - - --------- --------- --------- --------- --------- Provision for loan losses (GAAP) $ 62,500 $ 251,000 $ 223,000 $ 310,000 $ 184,000 ========= ========= ========= ========= ========= Fee revenue reconciliation Operating fee revenue $ 56,771 $ 49,908 $ 48,548 $ 50,964 $ 46,081 Gain from acquisition - - - 11,390 - --------- --------- --------- --------- --------- Fee revenue (GAAP) $ 56,771 $ 49,908 $ 48,548 $ 62,354 $ 46,081 ========= ========= ========= ========= ========= Total revenue reconciliation Total operating revenue $ 223,370 $ 32,577 $ 56,850 $ (13,809) $ 100,785 Taxable equivalent adjustment (1,690) (1,707) (2,001) (2,132) (2,261) Gain from acquisition - - - 11,390 - Partial recovery of special fraud- related loan loss - - 11,750 - - --------- --------- --------- --------- --------- Total revenue (GAAP) $ 221,680 $ 30,870 $ 66,599 $ (4,551) $ 98,524 ========= ========= ========= ========= ========= Expense reconciliation Operating expense $ 182,774 $ 261,599 $ 288,301 $ 217,050 $ 200,335 Noncash goodwill impairment charge - - 210,590 95,000 - Severance costs - - - 2,898 - --------- --------- --------- --------- --------- Operating expense (GAAP) $ 182,774 $ 261,599 $ 498,891 $ 314,948 $ 200,335 ========= ========= ========= ========= ========= Income (loss) before taxes reconciliation Income (loss) before taxes $ 40,596 $(229,022) $(231,451) $(230,859) $ (99,550) Taxable equivalent adjustment (1,690) (1,707) (2,001) (2,132) (2,261) Gain from acquisition - - - 11,390 - Noncash goodwill impairment charge - - (210,590) (95,000) - Severance costs - - - (2,898) - Partial recovery of special fraud- related loan loss - - 11,750 - - --------- --------- --------- --------- --------- Income (loss) before taxes (GAAP) $ 38,906 $(230,729) $(432,292) $(319,499) $(101,811) ========= ========= ========= ========= ========= Income tax (benefit) expense reconciliation Income tax (benefit) expense $ 2,740 $ (2,276) $ 73,218 $ (91,754) $ (35,651) Taxable equivalent adjustment (1,690) (1,707) (2,001) (2,132) (2,261) Gain from acquisition, tax expense - - - 4,328 - Severance costs, tax benefit - - - (1,101) - --------- --------- --------- --------- --------- Income tax (benefit) expense (GAAP) $ 1,050 $ (3,983) $ 71,217 $ (90,659) $ (37,912) ========= ========= ========= ========= ========= Diluted earnings (loss) from continuing operations per common share reconciliation Diluted operating earnings (loss) from continuing operations per common share $ .44 $ (5.97) $ (16.64) $ (12.37) $ (6.82) Gain from acquisition - - - .58 - Noncash goodwill impairment charge - - (11.13) (7.86) - Severance costs - - - (.15) - Partial recovery of special fraud- related loan loss - - .62 - - --------- --------- --------- --------- --------- Diluted earnings (loss) from continuing operations per common share (GAAP) $ .44 $ (5.97) $ (27.15) $ (19.80) $ (6.82) ========= ========= ========= ========= ========= Book value per common share reconciliation Tangible book value per common share $ 6.64 $ 6.47 $ 14.80 $ 30.09 $ 51.93 Effect of goodwill and other intangibles .10 .15 .60 11.69 32.82 --------- --------- --------- --------- --------- Book value per common share (GAAP) $ 6.74 $ 6.62 $ 15.40 $ 41.78 $ 84.75 ========= ========= ========= ========= ========= Efficiency ratio from continuing operations reconciliation Operating efficiency ratio from continuing operations 64.02% 92.27% 98.98% 73.97% 70.00% Gain from acquisition - - - (2.77) - Noncash goodwill impairment charge - - 72.29 31.17 - Severance costs - - - .95 - --------- --------- --------- --------- --------- Efficiency ratio from continuing operations (GAAP) 64.02% 92.27% 171.27% 103.32% 70.00% ========= ========= ========= ========= ========= Average equity to assets reconciliation Tangible common equity to assets 5.54% 3.74% 6.52% 6.15% 6.57% Effect of preferred equity 2.84 3.88 2.36 2.18 .10 --------- --------- --------- --------- --------- Tangible equity to assets 8.38 7.62 8.88 8.33 6.67 Effect of goodwill and other intangibles .09 .13 1.89 2.79 3.55 --------- --------- --------- --------- --------- Equity to assets (GAAP) 8.47% 7.75% 10.77% 11.12% 10.22% ========= ========= ========= ========= ========= Tangible common equity to risk- weighted assets reconciliation Tangible common equity to risk- weighted assets 8.33% 8.25% 5.64% 10.39% 8.34% Effect of other comprehensive income .51 (.03) (.42) (.87) (.91) Effect of deferred tax limitation - - - (1.27) - Effect of trust preferred 1.15 1.18 1.06 .97 .88 Effect of preferred equity 4.24 4.29 3.53 3.19 2.90 --------- --------- --------- --------- --------- Tier I capital ratio (Regulatory) 14.23% 13.69% 9.81% 12.41% 11.21% ========= ========= ========= ========= ========= Net charge-offs reconciliation Operating net charge- offs $ 69,831 $ 311,227 $ 215,657 $ 276,669 $ 151,152 Subsequent partial recovery of fraud- related charge-off - - (11,750) - - --------- --------- --------- --------- --------- Net charge-offs (GAAP) $ 69,831 $ 311,227 $ 203,907 $ 276,669 $ 151,152 ========= ========= ========= ========= ========= Net charge-offs to average loans reconciliation Operating net charge- offs to average loans 1.69% 7.33% 4.42% 5.03% 2.57% Subsequent partial recovery of fraud- related charge-off - - (.25) - - --------- --------- --------- --------- --------- Net charge-offs to average loans (GAAP) 1.69% 7.33% 4.17% 5.03% 2.57% ========= ========= ========= ========= =========UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) --------------------------------------- 2012 2011 ------------------------------- ------- Fourth Third Second First Fourth (in millions) Quarter Quarter Quarter Quarter Quarter ------- ------- ------- ------- ------- LOANS BY CATEGORY Owner occupied commercial RE $ 1,131 $ 1,126 $ 1,140 $ 1,137 $ 1,112 Income producing commercial RE 682 693 697 706 710 Commercial & industrial 458 460 450 440 428 Commercial construction 155 161 169 167 164 ------- ------- ------- ------- ------- Total commercial 2,426 2,440 2,456 2,450 2,414 Residential mortgage 829 833 834 836 835 Home equity lines of credit 385 341 294 295 300 Residential construction 382 389 409 436 448 Consumer installment 153 135 126 111 113 ------- ------- ------- ------- ------- Total loans $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110 ======= ======= ======= ======= ======= LOANS BY MARKET North Georgia $ 1,364 $ 1,383 $ 1,387 $ 1,408 $ 1,426 Atlanta MSA 1,288 1,257 1,252 1,239 1,220 North Carolina 579 579 576 588 597 Coastal Georgia 400 380 369 366 346 Gainesville MSA 261 256 259 262 265 East Tennessee 283 283 276 265 256 ------- ------- ------- ------- ------- Total loans $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110 ======= ======= ======= ======= ======= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 62 $ 71 $ 78 $ 86 $ 88 Land loans 46 41 45 57 61 Lot loans 193 196 203 204 207 ------- ------- ------- ------- ------- Total 301 308 326 347 356 ------- ------- ------- ------- ------- House loans Spec 41 44 49 57 59 Sold 40 37 34 32 33 ------- ------- ------- ------- ------- Total 81 81 83 89 92 ------- ------- ------- ------- ------- Total residential construction $ 382 $ 389 $ 409 $ 436 $ 448 ======= ======= ======= ======= ======= (1) Excludes total loans of$33.4 million ,$37.0 million ,$41.5 million ,$47.2 million and$54.5 million as ofDecember 31, 2012 ,September 30, 2012 ,June 30, 2012 ,March 31, 2012 andDecember 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 --------------- ------- Linked Year over Fourth Third Fourth Quarter Year (in millions) Quarter Quarter Quarter Change Change ------- ------- ------- -------- -------- LOANS BY CATEGORY Owner occupied commercial RE $ 1,131 $ 1,126 $ 1,112 $ 5 $ 19 Income producing commercial RE 682 693 710 (11) (28) Commercial & industrial 458 460 428 (2) 30 Commercial construction 155 161 164 (6) (9) ------- ------- ------- Total commercial 2,426 2,440 2,414 (14) 12 Residential mortgage 829 833 835 (4) (6) Home equity lines of credit 385 341 300 44 85 Residential construction 382 389 448 (7) (66) Consumer installment 153 135 113 18 40 ------- ------- ------- Total loans $ 4,175 $ 4,138 $ 4,110 37 65 ======= ======= ======= LOANS BY MARKET North Georgia $ 1,364 $ 1,383 $ 1,426 (19) (62) Atlanta MSA 1,288 1,257 1,220 31 68 North Carolina 579 579 597 - (18) Coastal Georgia 400 380 346 20 54 Gainesville MSA 261 256 265 5 (4) East Tennessee 283 283 256 - 27 ------- ------- ------- Total loans $ 4,175 $ 4,138 $ 4,110 37 65 ======= ======= ======= RESIDENTIAL CONSTRUCTION Dirt loans Acquisition & development $ 62 $ 71 $ 88 (9) (26) Land loans 46 41 61 5 (15) Lot loans 193 196 207 (3) (14) ------- ------- ------- Total 301 308 356 (7) (55) ------- ------- ------- House loans Spec 41 44 59 (3) (18) Sold 40 37 33 3 7 ------- ------- ------- Total 81 81 92 - (11) ------- ------- ------- Total residential construction $ 382 $ 389 $ 448 (7) (66) ======= ======= ======= (1) Excludes total loans of$33.4 million ,$37.0 million ,$41.5 million ,$47.2 million and$54.5 million as ofDecember 31, 2012 ,September 30, 2012 ,June 30, 2012 ,March 31, 2012 andDecember 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 Year-End (1) -------------------------------------------- (in millions) 2012 2011 2010 2009 2008 -------- -------- -------- -------- -------- LOANS BY CATEGORY Owner occupied commercial RE $ 1,131 $ 1,112 $ 980 $ 963 $ 955 Income producing commercial RE 682 710 781 816 672 Commercial & industrial 458 428 441 390 410 Commercial construction 155 164 297 363 500 -------- -------- -------- -------- -------- Total commercial 2,426 2,414 2,499 2,532 2,537 Residential mortgage 829 835 944 1,052 1,142 Home equity lines of credit 385 300 335 375 384 Residential construction 382 448 695 1,050 1,479 Consumer / installment 153 113 131 142 163 -------- -------- -------- -------- -------- Total loans $ 4,175 $ 4,110 $ 4,604 $ 5,151 $ 5,705 ======== ======== ======== ======== ======== LOANS BY MARKET North Georgia $ 1,364 $ 1,426 $ 1,689 $ 1,884 $ 2,040 Atlanta MSA 1,288 1,220 1,310 1,435 1,706 North Carolina 579 597 702 772 810 Coastal Georgia 400 346 335 405 464 Gainesville MSA 261 265 312 390 420 East Tennessee 283 256 256 265 265 -------- -------- -------- -------- -------- Total loans $ 4,175 $ 4,110 $ 4,604 $ 5,151 $ 5,705 ======== ======== ======== ======== ======== (1) Excludes total loans of$33.4 million ,$54.5 million ,$68.2 million and$85.1 million as ofDecember 31, 2012 , 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 2012 ---------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ---------- ---------- ---------- NPAs BY CATEGORY Owner occupied CRE $ 12,599 $ 4,989 $ 17,588 Income producing CRE 9,549 490 10,039 Commercial & industrial 31,817 - 31,817 Commercial construction 23,843 2,204 26,047 ---------- ---------- ---------- Total commercial 77,808 7,683 85,491 Residential mortgage 11,151 4,753 15,904 Home equity lines of credit 1,438 - 1,438 Residential construction 18,702 5,828 24,530 Consumer installment 795 - 795 ---------- ---------- ---------- Total NPAs $ 109,894 $ 18,264 $ 128,158 ========== ========== ========== Balance as a % of Unpaid Principal 69.5% 39.7% 62.8% NPAs BY MARKET North Georgia $ 69,950 $ 8,219 $ 78,169 Atlanta MSA 18,556 3,442 21,998 North Carolina 11,014 2,579 13,593 Coastal Georgia 3,810 1,609 5,419 Gainesville MSA 903 556 1,459 East Tennessee 5,661 1,859 7,520 ---------- ---------- ---------- Total NPAs $ 109,894 $ 18,264 $ 128,158 ========== ========== ========== NPA ACTIVITY Beginning Balance $ 115,001 $ 26,958 $ 141,959 Loans placed on non-accrual 20,211 - 20,211 Payments received (6,458) - (6,458) Loan charge-offs (11,722) - (11,722) Foreclosures (7,138) 7,138 - Capitalized costs - 201 201 Note / property sales - (12,845) (12,845) Write downs - (1,438) (1,438) Net gains (losses) on sales - (1,750) (1,750) ---------- ---------- ---------- Ending Balance $ 109,894 $ 18,264 $ 128,158 ========== ========== ========== (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 2012 ---------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ---------- ---------- ---------- NPAs BY CATEGORY Owner occupied CRE $ 14,140 $ 7,170 $ 21,310 Income producing CRE 11,756 1,597 13,353 Commercial & industrial 32,678 - 32,678 Commercial construction 18,590 3,121 21,711 ---------- ---------- ---------- Total commercial 77,164 11,888 89,052 Residential mortgage 12,629 6,031 18,660 Home equity lines of credit 1,367 - 1,367 Residential construction 22,935 9,039 31,974 Consumer installment 906 - 906 ---------- ---------- ---------- Total NPAs $ 115,001 $ 26,958 $ 141,959 ========== ========== ========== Balance as a % of Unpaid Principal 68.8% 36.4% 58.8% NPAs BY MARKET North Georgia $ 72,211 $ 14,582 $ 86,793 Atlanta MSA 21,349 5,926 27,275 North Carolina 9,622 2,771 12,393 Coastal Georgia 6,822 864 7,686 Gainesville MSA 840 1,328 2,168 East Tennessee 4,157 1,487 5,644 ---------- ---------- ---------- Total NPAs $ 115,001 $ 26,958 $ 141,959 ========== ========== ========== NPA ACTIVITY Beginning Balance $ 115,340 $ 30,421 $ 145,761 Loans placed on non-accrual 30,535 - 30,535 Payments received (3,646) - (3,646) Loan charge-offs (19,227) - (19,227) Foreclosures (8,001) 8,001 - Capitalized costs - 102 102 Note / property sales - (8,822) (8,822) Write downs - (2,394) (2,394) Net gains (losses) on sales - (350) (350) ---------- ---------- ---------- Ending Balance $ 115,001 $ 26,958 $ 141,959 ========== ========== ========== (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) ---------------------------------- Second Quarter 2012 ---------------------------------- Non- performing Foreclosed Total (in thousands) Loans Properties NPAs ---------- ---------- ---------- NPAs BY CATEGORY Owner occupied CRE $ 9,399 $ 7,914 $ 17,313 Income producing CRE 9,716 2,672 12,388 Commercial & industrial 34,982 - 34,982 Commercial construction 18,175 2,732 20,907 ---------- ---------- ---------- Total commercial 72,272 13,318 85,590 Residential mortgage 15,272 5,591 20,863 Home equity lines of credit 1,359 - 1,359 Residential construction 25,530 11,512 37,042 Consumer installment 907 - 907 ---------- ---------- ---------- Total NPAs $ 115,340 $ 30,421 $ 145,761 ========== ========== ========== Balance as a % of Unpaid Principal 68.8% 39.3% 59.4% NPAs BY MARKET North Georgia $ 77,332 $ 13,546 $ 90,878 Atlanta MSA 17,593 8,651 26,244 North Carolina 10,657 3,287 13,944 Coastal Georgia 5,822 785 6,607 Gainesville MSA 991 2,998 3,989 East Tennessee 2,945 1,154 4,099 ---------- ---------- ---------- Total NPAs $ 115,340 $ 30,421 $ 145,761 ========== ========== ========== NPA ACTIVITY Beginning Balance $ 129,704 $ 31,887 $ 161,591 Loans placed on non-accrual 29,364 - 29,364 Payments received (15,027) - (15,027) Loan charge-offs (19,382) - (19,382) Foreclosures (9,319) 9,319 - Capitalized costs - 415 415 Note / property sales - (10,461) (10,461) Write downs - (1,008) (1,008) Net gains (losses) on sales - 269 269 ---------- ---------- ---------- Ending Balance $ 115,340 $ 30,421 $ 145,761 ========== ========== ========== (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 Third Quarter Second Quarter 2012 2012 2012 ---------------- ----------------- ----------------- Net Net Net Charge- Charge- Charge- Offs to Offs to Offs to Net Average Net Average Net Average (in thousands) Charge- Loans Charge- Loans Charge- Loans Offs (2) Offs (2) Offs (2) -------- ------- -------- ------- -------- ------- NET CHARGE-OFFS BY CATEGORY Owner occupied CRE $ 4,997 1.76% $ 6,192 3.56% $ 1,305 .46% Income producing CRE 1,153 .67 1,982 .70 3,044 1.75 Commercial & industrial 135 .12 (259) (.23) 775 .70 Commercial construction 1,688 4.25 3,190 7.74 88 .21 -------- -------- -------- Total commercial 7,973 1.30 11,105 1.81 5,212 .86 Residential mortgage 3,254 1.55 2,846 1.40 1,971 .70 Home equity lines of credit 445 .49 681 .80 1,891 2.60 Residential construction 2,435 2.52 5,676 5.69 9,563 9.14 Consumer installment 398 1.10 255 .78 259 .88 -------- -------- -------- Total $ 14,505 1.39 $ 20,563 1.99 $ 18,896 1.85 ======== ======== ======== NET CHARGE-OFFS BY MARKET North Georgia $ 4,474 1.26% $ 6,451 1.84% $ 12,474 3.58% Atlanta MSA 3,977 1.27 9,344 3.02 2,307 .75 North Carolina 2,032 1.39 1,674 1.15 3,634 2.52 Coastal Georgia 574 .60 2,486 2.67 211 .23 Gainesville MSA 1,331 2.04 294 .45 (187) (.29) East Tennessee 2,117 2.98 314 .45 457 .68 -------- -------- -------- Total $ 14,505 1.39 $ 20,563 1.99 $ 18,896 1.85 ======== ======== ======== (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 Twelve Months Ended December 31, December 31, ------------------- -------------------- (in thousands, except per share data) 2012 2011 2012 2011 --------- --------- --------- --------- Interest revenue: Loans, including fees $ 53,335 $ 57,697 $ 217,140 $ 239,056 Investment securities, including tax exempt of$219 , $255, $956 and $1,009 9,841 13,296 44,613 56,260 Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks 893 489 3,986 2,321 --------- --------- --------- --------- Total interest revenue 64,069 71,482 265,739 297,637 --------- --------- --------- --------- Interest expense: Deposits: NOW 462 807 2,049 3,998 Money market 617 800 2,518 5,456 Savings 38 41 150 234 Time 3,674 7,338 19,518 39,151 --------- --------- --------- --------- Total deposit interest expense 4,791 8,986 24,235 48,839 Federal funds purchased, repurchase agreements and other short-term borrowings 524 1,053 2,987 4,250 Federal Home Loan Bank advances 25 441 907 2,042 Long-term debt 3,082 2,375 10,201 10,544 --------- --------- --------- --------- Total interest expense 8,422 12,855 38,330 65,675 --------- --------- --------- --------- Net interest revenue 55,647 58,627 227,409 231,962 Provision for loan losses 14,000 14,000 62,500 251,000 --------- --------- --------- --------- Net interest revenue after provision for loan losses 41,647 44,627 164,909 (19,038) --------- --------- --------- --------- Fee revenue: Service charges and fees 8,375 7,248 31,670 29,110 Mortgage loan and other related fees 3,262 1,825 10,483 5,419 Brokerage fees 751 782 3,082 2,986 Securities gains, net 31 4 7,078 842 Loss from prepayment of debt - - (6,681) (791) Other 2,342 2,808 11,139 12,342 --------- --------- --------- --------- Total fee revenue 14,761 12,667 56,771 49,908 --------- --------- --------- --------- Total revenue 56,408 57,294 221,680 30,870 --------- --------- --------- --------- Operating expenses: Salaries and employee benefits 23,586 23,473 96,026 100,095 Communications and equipment 3,320 3,129 12,940 13,135 Occupancy 3,455 3,972 14,304 15,645 Advertising and public relations 987 944 3,855 4,291 Postage, printing and supplies 1,050 1,017 3,899 4,256 Professional fees 2,685 1,996 8,792 9,727 Foreclosed property 4,611 9,302 13,993 78,905FDIC assessments and other regulatory charges 2,505 2,599 10,097 14,259 Amortization of intangibles 727 746 2,917 3,016 Other 3,800 3,902 15,951 18,270 --------- --------- --------- --------- Total operating expenses 46,726 51,080 182,774 261,599 --------- --------- --------- --------- Net income (loss) before income taxes 9,682 6,214 38,906 (230,729) Income tax (benefit) expense 421 (3,687) 1,050 (3,983) --------- --------- --------- --------- Net income (loss) 9,261 9,901 37,856 (226,746) Preferred stock dividends and discount accretion 3,045 3,025 12,148 11,838 --------- --------- --------- --------- Net income (loss) available to common shareholders $ 6,216 $ 6,876 $ 25,708 $(238,584) ========= ========= ========= ========= Earnings (loss) per common share - Basic $ .11 $ .12 $ .44 $ (5.97) Earnings (loss) per common share - Diluted .11 .12 .44 (5.97) Weighted average common shares outstanding - Basic 57,971 57,646 57,857 39,943 Weighted average common shares outstanding - Diluted 57,971 57,646 57,857 39,943UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheet ------------- ------------- (in thousands, except share and per share December 31, December 31, data) 2012 2011 ------------- ------------- (unaudited) (audited) ASSETS Cash and due from banks $ 66,536 $ 53,807 Interest-bearing deposits in banks 124,613 139,609 Federal funds sold, reverse repurchase agreements, securities lending, commercial paper and short-term investments 60,000 185,000 ------------- ------------- Cash and cash equivalents 251,149 378,416 Securities available for sale 1,834,593 1,790,047 Securities held to maturity (fair value $261,131 and $343,531) 244,184 330,203 Mortgage loans held for sale 28,821 23,881 Loans, net of unearned income 4,175,008 4,109,614 Less allowance for loan losses (107,137) (114,468) ------------- ------------- Loans, net 4,067,871 3,995,146 Assets covered by loss sharing agreements with the FDIC 47,467 78,145 Premises and equipment, net 168,920 175,088 Bank owned life insurance 81,867 80,599 Accrued interest receivable 18,659 20,693 Goodwill and other intangible assets 5,510 8,428 Foreclosed property 18,264 32,859 Other assets 34,954 69,915 ------------- ------------- Total assets $ 6,802,259 $ 6,983,420 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Demand $ 1,252,605 $ 992,109 NOW 1,316,453 1,509,896 Money market 1,149,912 1,038,778 Savings 227,308 199,007 Time: Less than $100,000 1,055,271 1,332,394 Greater than $100,000 705,558 847,152 Brokered 245,033 178,647 ------------- ------------- Total deposits 5,952,140 6,097,983 Federal funds purchased, repurchase agreements, and other short-term borrowings 52,574 102,577 Federal Home Loan Bank advances 40,125 40,625 Long-term debt 124,805 120,225 Unsettled securities purchases - 10,325 Accrued expenses and other liabilities 47,210 36,199 ------------- ------------- Total liabilities 6,216,854 6,407,934 ------------- ------------- 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 178,557 177,092 Series D;$1,000 stated value; 16,613 shares issued and outstanding 16,613 16,613 Common stock,$1 par value; 100,000,000 shares authorized; 42,423,870 and 41,647,100 shares issued and outstanding 42,424 41,647 Common stock, non-voting,$1 par value; 30,000,000 shares authorized; 15,316,794 and 15,914,209 shares issued and outstanding 15,317 15,914 Common stock issuable; 133,238 and 93,681 shares 3,119 3,233 Capital surplus 1,057,951 1,054,940 Accumulated deficit (705,153) (730,861) Accumulated other comprehensive loss (23,640) (3,309) ------------- ------------- Total shareholders' equity 585,405 575,486 ------------- ------------- Total liabilities and shareholders' equity $ 6,802,259 $ 6,983,420 ============= =============
UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months EndedDecember 31 , ---------------------------------------------------- 2012 2011 ------------------------- ------------------------- (dollars in thousands, Average Avg. Average Avg. taxable equivalent) Balance Interest Rate Balance Interest Rate ---------- -------- ---- ---------- -------- ---- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $4,190,725 $ 53,366 5.07% $4,175,320 $ 57,773 5.49% Taxable securities (3) 2,065,311 9,622 1.86 2,114,069 13,041 2.47 Tax-exempt securities (1)(3) 22,483 358 6.37 27,224 417 6.13 Federal funds sold and other interest- earning assets 203,090 1,104 2.17 371,606 674 .73 ---------- -------- ---------- -------- Total interest- earning assets 6,481,609 64,450 3.96 6,688,219 71,905 4.27 ---------- -------- ---------- -------- Non-interest-earning assets: Allowance for loan losses (112,846) (145,559) Cash and due from banks 54,714 54,485 Premises and equipment 169,967 176,182 Other assets (3) 184,398 245,664 ---------- ---------- Total assets $6,777,842 $7,018,991 ========== ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,261,796 462 .15 $1,451,581 807 .22 Money market 1,200,701 617 .20 1,041,375 800 .30 Savings 224,624 38 .07 198,541 41 .08 Time less than $100,000 1,082,761 1,982 .73 1,358,367 3,668 1.07 Time greater than $100,000 715,902 1,673 .93 875,434 2,867 1.30 Brokered time deposits 135,708 19 .06 180,933 803 1.76 ---------- -------- ---------- -------- Total interest- bearing deposits 4,621,492 4,791 .41 5,106,231 8,986 .70 ---------- -------- ---------- -------- Federal funds purchased and other borrowings 67,403 524 3.09 102,776 1,053 4.06 Federal Home Loan Bank advances 39,092 25 .25 40,625 441 4.31 Long-term debt 149,564 3,082 8.20 120,217 2,375 7.84 ---------- -------- ---------- -------- Total borrowed funds 256,059 3,631 5.64 263,618 3,869 5.82 ---------- -------- ---------- -------- Total interest- bearing liabilities 4,877,551 8,422 .69 5,369,849 12,855 .95 -------- -------- Non-interest-bearing liabilities: Non-interest-bearing deposits 1,251,327 1,008,327 Other liabilities 63,785 59,908 ---------- ---------- Total liabilities 6,192,663 6,438,084 Shareholders' equity 585,179 580,907 ---------- ---------- Total liabilities and shareholders' equity $6,777,842 $7,018,991 ========== ========== Net interest revenue $ 56,028 $ 59,050 ======== ======== Net interest-rate spread 3.27% 3.32% ==== ==== Net interest margin (4) 3.44% 3.51% ==== ==== (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$22.2 million in 2012 and$31.3 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.UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Twelve Months EndedDecember 31 , ------------------------- ------------------------- 2012 2011 ------------------------- ------------------------- (dollars in thousands, Average Avg. Average Avg. taxable equivalent) Balance Interest Rate Balance Interest Rate ---------- -------- ---- ---------- -------- ---- Assets: Interest-earning assets: Loans, net of unearned income (1)(2) $4,165,520 $217,467 5.22% $4,307,111 $239,195 5.55% Taxable securities (3) 2,065,162 43,657 2.11 1,973,678 55,251 2.80 Tax-exempt securities (1)(3) 23,759 1,565 6.59 25,693 1,651 6.43 Federal funds sold and other interest- earning assets 292,857 4,740 1.62 478,403 3,247 .68 ---------- -------- ---------- -------- Total interest- earning assets 6,547,298 267,429 4.08 6,784,885 299,344 4.41 ---------- -------- ---------- -------- Non-interest-earning assets: Allowance for loan losses (114,647) (145,656) Cash and due from banks 53,247 90,212 Premises and equipment 172,544 178,061 Other assets (3) 206,609 281,233 ---------- ---------- Total assets $6,865,051 $7,188,735 ========== ========== Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW $1,293,510 2,049 .16 $1,348,493 3,998 .30 Money market 1,140,354 2,518 .22 993,871 5,456 .55 Savings 216,880 150 .07 195,468 234 .12 Time less than $100,000 1,170,202 9,788 .84 1,471,596 18,648 1.27 Time greater than $100,000 766,411 8,027 1.05 948,659 14,347 1.51 Brokered time deposits 155,902 1,703 1.09 401,393 6,156 1.53 ---------- -------- ---------- -------- Total interest- bearing deposits 4,743,259 24,235 .51 5,359,480 48,839 .91 ---------- -------- ---------- -------- Federal funds purchased and other borrowings 80,593 2,987 3.71 102,727 4,250 4.14 Federal Home Loan Bank advances 124,771 907 .73 47,220 2,042 4.32 Long-term debt 127,623 10,201 7.99 139,666 10,544 7.55 ---------- -------- ---------- -------- Total borrowed funds 332,987 14,095 4.23 289,613 16,836 5.81 ---------- -------- ---------- -------- Total interest- bearing liabilities 5,076,246 38,330 .76 5,649,093 65,675 1.16 -------- -------- Non-interest-bearing liabilities: Non-interest-bearing deposits 1,142,236 915,649 Other liabilities 64,986 66,809 ---------- ---------- Total liabilities 6,283,468 6,631,551 Shareholders' equity 581,583 557,184 ---------- ---------- Total liabilities and shareholders' equity $6,865,051 $7,188,735 ========== ========== Net interest revenue $229,099 $233,669 ======== ======== Net interest-rate spread 3.32% 3.25% ==== ==== Net interest margin (4) 3.50% 3.44% ==== ==== (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$32.2 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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