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United Community Banks, Inc. Reports Net Operating Loss for First Quarter 2010
United Community Banks, Inc. Reports Net Operating Loss for First Quarter 2010
Apr 22, 2010
BLAIRSVILLE, GA, Apr 22, 2010 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
-- Non-performing assets of $417 million at quarter-end, but $317 million
after transaction with private equity firm in April
-- Provision for loan losses of $75 million, charge-offs of $56.7 million
-- Allowance-to-loans ratio of 3.48 percent, up from 3.02 percent in
previous quarter
-- Margin improves to 3.49 percent, up 41 basis points from one year ago
-- Sold consulting services business
-- Capital ratios remain strong
United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $34.5 million, or 39 cents per diluted share, for the first quarter of 2010.
"The first quarter was difficult in terms of credit, as we had anticipated," stated Jimmy Tallent, president and chief executive officer. "We were not able to dispose of foreclosed properties at the same pace as in previous quarters, in large part due to the harshest winter weather our markets have seen in many years. However, our sale of $100 million in illiquid non-performing assets by the end of April will prove to be beneficial. The sale, which includes approximately $72 million of non-performing loans and $28 million of foreclosed properties, shows our determination to find innovative ways to move through this credit cycle and into recovery more quickly."
Total loans were $5.0 billion at quarter-end, down $159 million from the end of the fourth quarter and $641 million from a year earlier. As of March 31, 2010, residential construction loans were $960 million, or 19 percent of total loans, down $90 million for the quarter and down $470 million from a year ago. New lending during the quarter of $57 million, primarily commercial loans in metropolitan Atlanta, offset some of this decline. Annualized loan growth of 4 percent is consistent with that of 2009.
Taxable equivalent net interest revenue of $61.3 million for the first quarter reflected an increase of $3.9 million compared to the first quarter of 2009. The taxable equivalent net interest margin was 3.49 percent, up 41 basis points from a year ago and up 9 basis points from the fourth quarter of 2009. "Our ongoing strategies of building margin while maintaining liquidity are continuing to be effective," Tallent said.
"We had our fifth consecutive quarter of core transaction deposit growth, with an increase of $53 million from the prior quarter or 9 percent on an annualized basis," Tallent continued. "We believe much of this growth is related to disruption in the banking industry, and the favorable perception of United as a strong bank with strong service. We are emphasizing these positive attributes in our marketing programs."
The first quarter 2010 provision for loan losses decreased to $75 million from $90 million in the fourth quarter of 2009. Net charge-offs also decreased, to $56.7 million, compared to $84.6 million in the fourth quarter. Non-performing assets increased to $417 million at quarter-end from $385 million at year-end. The ratio of non-performing assets to total assets at the end of the first quarter of 2010 and fourth quarter of 2009 was 5.32 percent and 4.81 percent, respectively. Including the planned sale of $100 million of non-performing assets, the pro forma quarter-end ratio of non-performing assets to total assets is 4.05 percent.
"The sale of these non-performing assets, which we announced on April 1, is a very unique and positive transaction for United and its shareholders," stated Tallent. "It eliminates $100 million of our more illiquid non-performing assets while avoiding any additional charge-offs and credit costs associated with them. This is particularly attractive due to the lack of investor interest we have seen in larger tracts of land outside of our metro Atlanta markets. The transaction reduces non-performing assets by about 25 percent while attaining their highest current economic value and preserving our capital position. This transaction will help us move through the credit cycle and into recovery sooner."
Operating fee revenue, all periods presented, excludes consulting services revenue because United's consulting services subsidiary, Brintech, was sold on March 31. "Brintech has been part of United Community Banks for 10 years," Tallent said. "At this time our focus is best placed on returning the company to profitability through our core businesses. Consulting requires scale to grow, and we found an acquirer that is a good fit and allows most of Brintech's employees to continue in their roles."
The results of United's operations for all periods presented in the attached schedules have been restated to show earnings from continuing operations, which excludes Brintech's fee revenue and operating expenses. Also, the net income or loss from the discontinued operations is reported as a separate line in the income statement.
Operating fee revenue for United was $11.7 million for the first quarter of 2010, compared to $11.8 million a year ago. Service charges and fees of $7.4 million were up $413,000, due primarily to new accounts and more ATM and debit card transactions. Mortgage loan fees were down $1.2 million, to $1.5 million, due to lower refinancing activity. Other fee revenue increased $1.0 million to $2.1 million, due primarily to the ineffectiveness of cash flow hedges on a certain portion of the company's prime-based loans that resulted in an acceleration of $520,000 of deferred gains and higher earnings of $320,000 on bank-owned life insurance assets.
Due to higher foreclosed property costs, operating expenses increased by $3.0 million, from $51.8 million in the first quarter of 2009 to $54.8 million in the first quarter of 2010. Operating expenses for the first quarter of 2009, as noted in the financial highlights, exclude a $70 million non-cash goodwill impairment charge and $2.9 million in severance costs. Foreclosed property costs for the first quarter of 2010 were $10.8 million as compared to $4.3 million in the first quarter of 2009 and $14.4 million in the fourth quarter of 2009. Foreclosed property costs in the first quarter included $2.7 million for maintenance, property taxes and other related costs. In addition, write-downs relating to the sale of properties totaled $3.5 million and write-downs to help expedite future sales of other foreclosed properties totaled $4.6 million. Salary and benefit costs totaled $24.4 million, a decrease of $3.0 million from last year due primarily to the 10 percent reduction in workforce implemented at the end of the first quarter of 2009.
The effective tax rate for the first quarter of 2010 was 40 percent, compared to 45 percent in the fourth quarter of 2009 and 14 percent in the first quarter of 2009. The fourth quarter 2009 tax benefit included the favorable settlement of a several-year state tax audit dispute for which the company was fully reserved due to the uncertainty of the tax position. The first quarter 2009 effective rate was lower due to the goodwill impairment charge which was not a taxable event and therefore did not result in the recognition of a tax benefit. The effective tax rate for 2010 is expected to be 40 percent, slightly higher than the effective tax rate for the full year 2009.
As of March 31, 2010, United Community Banks' regulatory capital ratios were as follows: Tier I Risk-Based Capital of 11.7 percent; Leverage of 8.1 percent; and Total Risk-Based Capital of 14.4 percent. The quarterly average Tangible Equity-to-Assets Ratio was 9.4 percent and the Tangible Common Equity-to-Assets Ratio was 7.1 percent.
"The quarter was eventful and productive, and one that I would like to think sets the tone for the balance of 2010," concluded Tallent. "Moving $100 million of non-performing assets out of the bank doesn't put all of our challenges behind us, but it is a significant milestone and a giant leap in the right direction. We have said for some time now that we would not rest until United returns to its accustomed profitability. That commitment continues and, while we aren't there yet, we have made significant progress."
Conference Call
United Community Banks will hold a conference call today, Thursday, April 22, 2010, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the password '67352551.' The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's website 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 $7.8 billion and operates 27 community banks with 107 banking offices throughout north Georgia, the Atlanta region, 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 some 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 3 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2010
-----------
(in thousands,
except per share
data; taxable First
equivalent) Quarter
-----------
INCOME SUMMARY
Interest revenue $ 89,849
Interest expense 28,570
-----------
Net interest
revenue 61,279
Provision for loan
losses 75,000
Operating fee
revenue (1) 11,666
-----------
Total operating
revenue (1) (2,055)
Operating expenses
(2) 54,820
-----------
Operating loss
from continuing
operations before
taxes (56,875)
Operating income
tax benefit (22,417)
-----------
Net operating
loss from
continuing
operations (1)(2) (34,458)
Gain from
acquisition, net
of tax expense -
Noncash goodwill
impairment charges -
Severance costs,
net of tax benefit -
(Loss) income from
discontinued
operations (101)
Gain from sale of
subsidiary, net of
income taxes and
selling costs 1,266
-----------
Net loss (33,293)
Preferred dividends
and discount
accretion 2,572
-----------
Net loss available
to common
shareholders $ (35,865)
===========
PERFORMANCE
MEASURES
Per common share:
Diluted operating
loss from
continuing
operations
(1)(2) $ (.39)
Diluted loss
from
continuing
operations (.39)
Diluted loss (.38)
Stock dividends
declared (6) -
Book value 7.95
Tangible book
value (4) 5.62
Key performance
ratios:
Return on equity
(3)(5) (20.10)%
Return on assets
(5) (1.70)
Net interest margin
(5) 3.49
Operating
efficiency ratio
from continuing
operations
(1)(2) 75.22
Equity to assets 11.90
Tangible equity to
assets (4) 9.39
Tangible common
equity to assets
(4) 7.13
Tangible common
equity to
risk-weighted
assets (4) 10.03
ASSET QUALITY *
Non-performing
loans $ 280,802
Foreclosed
properties 136,275
-----------
Total
non-performing
assets (NPAs) 417,077
Allowance for loan
losses 173,934
Net charge-offs 56,668
Allowance for loan
losses to loans 3.48%
Net charge-offs to
average loans (5) 4.51
NPAs to loans and
foreclosed
properties 8.13
NPAs to total
assets 5.32
AVERAGE BALANCES
Loans $ 5,172,847
Investment
securities 1,517,696
Earning assets 7,084,891
Total assets 7,946,303
Deposits 6,570,016
Shareholders
equity 945,426
Common shares -
basic 94,390
Common shares -
diluted 94,390
AT PERIOD END
Loans * $ 4,992,045
Investment
securities 1,526,589
Total assets 7,837,018
Deposits 6,487,588
Shareholders
equity 925,895
Common shares
outstanding 94,176
2009
-----------------------------------------------------
(in thousands,
except per share
data; taxable Fourth Third Second First
equivalent) Quarter Quarter Quarter Quarter
----------- ----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 97,481 $ 101,181 $ 102,737 $ 103,562
Interest expense 33,552 38,177 41,855 46,150
----------- ----------- ----------- -----------
Net interest
revenue 63,929 63,004 60,882 57,412
Provision for loan
losses 90,000 95,000 60,000 65,000
Operating fee
revenue (1) 14,447 13,389 11,305 11,823
----------- ----------- ----------- -----------
Total operating
revenue (1) (11,624) (18,607) 12,187 4,235
Operating expenses
(2) 60,126 51,426 53,710 51,788
----------- ----------- ----------- -----------
Operating loss
from continuing
operations before
taxes (71,750) (70,033) (41,523) (47,553)
Operating income
tax benefit (31,687) (26,252) (18,394) (15,421)
----------- ----------- ----------- -----------
Net operating loss
from continuing
operations (1)(2) (40,063) (43,781) (23,129) (32,132)
Gain from
acquisition, net
of tax expense - - 7,062 -
Noncash goodwill
impairment charges - (25,000) - (70,000)
Severance costs,
net of tax benefit - - - (1,797)
(Loss) income from
discontinued
operations 228 63 66 156
Gain from sale of
subsidiary, net of
income taxes and
selling costs - - - -
----------- ----------- ----------- -----------
Net loss (39,835) (68,718) (16,001) (103,773)
Preferred dividends
and discount
accretion 2,567 2,562 2,559 2,554
----------- ----------- ----------- -----------
Net loss available
to common
shareholders $ (42,402) $ (71,280) $ (18,560) $ (106,327)
=========== =========== =========== ===========
PERFORMANCE
MEASURES
Per common share:
Diluted operating
loss from
continuing
operations
(1)(2) $ (.45) $ (.93) $ (.53) $ (.72)
Diluted loss
from
continuing
operations (.45) (1.43) (.38) (2.20)
Diluted loss (.45) (1.43) (.38) (2.20)
Stock dividends
declared (6) - 1 for 130 1 for 130 1 for 130
Book value 8.36 8.85 13.87 14.70
Tangible book
value (4) 6.02 6.50 8.85 9.65
Key performance
ratios:
Return on equity
(3)(5) (22.08)% (45.52)% (11.42)% (58.28)%
Return on assets
(5) (1.91) (3.32) (.78) (5.03)
Net interest
margin (5) 3.40 3.39 3.28 3.08
Operating
efficiency ratio
from continuing
operations
(1)(2) 78.74 68.35 73.68 75.13
Equity to assets 11.94 10.27 10.71 11.56
Tangible equity
to assets (4) 9.53 7.55 7.96 8.24
Tangible common
equity to assets
(4) 7.37 5.36 5.77 6.09
Tangible common
equity to
risk-weighted
assets (4) 10.39 10.67 7.49 8.03
ASSET QUALITY *
Non-performing
loans $ 264,092 $ 304,381 $ 287,848 $ 259,155
Foreclosed
properties 120,770 110,610 104,754 75,383
----------- ----------- ----------- -----------
Total
non-performing
assets (NPAs) 384,862 414,991 392,602 334,538
Allowance for loan
losses 155,602 150,187 145,678 143,990
Net charge-offs 84,585 90,491 58,312 43,281
Allowance for loan
losses to loans 3.02% 2.80% 2.64% 2.56%
Net charge-offs to
average loans (5) 6.37 6.57 4.18 3.09
NPAs to loans and
foreclosed
properties 7.30 7.58 6.99 5.86
NPAs to total
assets 4.81 4.91 4.63 4.09
AVERAGE BALANCES
Loans $ 5,357,150 $ 5,565,498 $ 5,597,259 $ 5,675,054
Investment
securities 1,528,805 1,615,499 1,771,482 1,712,654
Earning assets 7,486,790 7,400,539 7,442,178 7,530,230
Total assets 8,286,544 8,208,199 8,212,140 8,372,281
Deposits 6,835,052 6,689,948 6,544,537 6,780,531
Shareholders'
equity 989,279 843,130 879,210 967,505
Common shares -
basic 94,219 49,771 48,794 48,324
Common shares -
diluted 94,219 49,771 48,794 48,324
AT PERIOD END
Loans * $ 5,151,476 $ 5,362,689 $ 5,513,087 $ 5,632,705
Investment
securities 1,530,047 1,532,514 1,816,787 1,719,033
Total assets 7,999,914 8,443,617 8,477,355 8,171,663
Deposits 6,627,834 6,821,306 6,848,760 6,616,488
Shareholders'
equity 962,321 1,006,638 855,272 888,853
Common shares
outstanding 94,046 93,901 48,933 48,487
(1) Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009 and revenue generated
by discontinued operations in all periods presented. (2) Excludes the
goodwill impairment charges of $25 million and $70 million in the third and
first quarters of 2009, respectively, severance costs of $2.9 million, net
of income tax benefit of $1.1 million in the first quarter of 2009 and
expenses relating to discontinued operations for all periods presented. (3)
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). (4) Excludes effect of
acquisition related intangibles and associated amortization. (5)
Annualized. (6) Number of new shares issued for shares currently held.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
First
2010 2009 Quarter
---------- ----------
(in thousands, except per share First First 2010-2009
data; taxable equivalent) Quarter Quarter Change
---------- ---------- -----------
INCOME SUMMARY
Interest revenue $ 89,849 $ 103,562
Interest expense 28,570 46,150
---------- ----------
Net interest revenue 61,279 57,412 7 %
Provision for loan losses 75,000 65,000
Operating fee revenue (1) 11,666 11,823 (1)
---------- ----------
Total operating revenue (1) (2,055) 4,235 (149)
Operating expenses (2) 54,820 51,788 6
---------- ----------
Operating loss from continuing
operations before taxes (56,875) (47,553) (20)
Operating income tax benefit (22,417) (15,421)
---------- ----------
Net operating loss from
continuing operations (1)(2) (34,458) (32,132) (7)
Gain from acquisition, net of tax
expense - -
Noncash goodwill impairment charges - (70,000)
Severance costs, net of tax benefit - (1,797)
(Loss) income from discontinued
operations (101) 156
Gain from sale of subsidiary, net of
income taxes and selling costs 1,266 -
---------- ----------
Net loss (33,293) (103,773) 68
Preferred dividends and discount
accretion 2,572 2,554
---------- ----------
Net loss available to common
shareholders $ (35,865) $ (106,327)
========== ==========
PERFORMANCE MEASURES
Per common share:
Diluted operating loss from
continuing operations (1)(2) $ (.39) $ (.72) 46
Diluted loss from continuing
operations (.39) (2.20) 82
Diluted loss (.38) (2.20) 83
Stock dividends declared (6) - 1 for 130
Book value 7.95 14.70 (46)
Tangible book value (4) 5.62 9.65 (42)
Key performance ratios:
Return on equity (3)(5) (20.10)% (58.28)%
Return on assets (5) (1.70) (5.03)
Net interest margin (5) 3.49 3.08
Operating efficiency ratio from
continuing operations (1)(2) 75.22 75.13
Equity to assets 11.90 11.56
Tangible equity to assets (4) 9.39 8.24
Tangible common equity to assets
(4) 7.13 6.09
Tangible common equity to
risk-weighted assets (4) 10.03 8.03
ASSET QUALITY *
Non-performing loans $ 280,802 $ 259,155
Foreclosed properties 136,275 75,383
---------- ----------
Total non-performing assets
(NPAs) 417,077 334,538
Allowance for loan losses 173,934 143,990
Net charge-offs 56,668 43,281
Allowance for loan losses to loans 3.48 % 2.56 %
Net charge-offs to average loans
(5) 4.51 3.09
NPAs to loans and foreclosed
properties 8.13 5.86
NPAs to total assets 5.32 4.09
AVERAGE BALANCES
Loans $5,172,847 $5,675,054 (9)
Investment securities 1,517,696 1,712,654 (11)
Earning assets 7,084,891 7,530,230 (6)
Total assets 7,946,303 8,372,281 (5)
Deposits 6,570,016 6,780,531 (3)
Shareholders' equity 945,426 967,505 (2)
Common shares - basic 94,390 48,324
Common shares - diluted 94,390 48,324
AT PERIOD END
Loans * $4,992,045 $5,632,705 (11)
Investment securities 1,526,589 1,719,033 (11)
Total assets 7,837,018 8,171,663 (4)
Deposits 6,487,588 6,616,488 (2)
Shareholders' equity 925,895 888,853 4
Common shares outstanding 94,176 48,487
(1) Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009 and revenue generated
by discontinued operations in all periods presented. (2) Excludes the
goodwill impairment charges of $25 million and $70 million in the third and
first quarters of 2009, respectively, severance costs of $2.9 million, net
of income tax benefit of $1.1 million in the first quarter of 2009 and
expenses relating to discontinued operations for all periods presented.
(3) 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). (4) Excludes effect of
acquisition related intangibles and associated amortization. (5)
Annualized. (6) Number of new shares issued for shares currently held.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
(in thousands, 2010 2009
except per share -------- ------------------------------------------
data; taxable First Fourth Third Second First
equivalent) Quarter Quarter Quarter Quarter Quarter
-------- -------- -------- -------- ---------
Interest revenue
reconciliation
Interest revenue -
taxable equivalent $ 89,849 $ 97,481 $101,181 $102,737 $ 103,562
Taxable equivalent
adjustment (493) (601) (580) (463) (488)
-------- -------- -------- -------- ---------
Interest
revenue (GAAP) $ 89,356 $ 96,880 $100,601 $102,274 $ 103,074
======== ======== ======== ======== =========
Net interest
revenue
reconciliation
Net interest
revenue - taxable
equivalent $ 61,279 $ 63,929 $ 63,004 $ 60,882 $ 57,412
Taxable equivalent
adjustment (493) (601) (580) (463) (488)
-------- -------- -------- -------- ---------
Net interest
revenue (GAAP) $ 60,786 $ 63,328 $ 62,424 $ 60,419 $ 56,924
======== ======== ======== ======== =========
Fee revenue
reconciliation
Operating fee
revenue $ 11,666 $ 14,447 $ 13,389 $ 11,305 $ 11,823
Gain from
acquisition - - - 11,390 -
-------- -------- -------- -------- ---------
Fee revenue
(GAAP) $ 11,666 $ 14,447 $ 13,389 $ 22,695 $ 11,823
======== ======== ======== ======== =========
Total revenue
reconciliation
Total operating
revenue $ (2,055) $(11,624) $(18,607) $ 12,187 $ 4,235
Taxable equivalent
adjustment (493) (601) (580) (463) (488)
Gain from
acquisition - - - 11,390 -
-------- -------- -------- -------- ---------
Total revenue
(GAAP) $ (2,548) $(12,225) $(19,187) $ 23,114 $ 3,747
======== ======== ======== ======== =========
Expense
reconciliation
Operating expense $ 54,820 $ 60,126 $ 51,426 $ 53,710 $ 51,788
Noncash goodwill
impairment charge - - 25,000 - 70,000
Severance costs - - - - 2,898
-------- -------- -------- -------- ---------
Operating
expense (GAAP) $ 54,820 $ 60,126 $ 76,426 $ 53,710 $ 124,686
======== ======== ======== ======== =========
Loss from
continuing
operations before
taxes
reconciliation
Operating loss from
continuing
operations before
taxes $(56,875) $(71,750) $(70,033) $(41,523) $ (47,553)
Taxable equivalent
adjustment (493) (601) (580) (463) (488)
Gain from
acquisition - - - 11,390 -
Noncash goodwill
impairment charge - - (25,000) - (70,000)
Severance costs - - - - (2,898)
-------- -------- -------- -------- ---------
Loss from
continuing
operations
before taxes
(GAAP) $(57,368) $(72,351) $(95,613) $(30,596) $(120,939)
======== ======== ======== ======== =========
Income tax benefit
reconciliation
Operating income
tax benefit $(22,417) $(31,687) $(26,252) $(18,394) $ (15,421)
Taxable equivalent
adjustment (493) (601) (580) (463) (488)
Gain from
acquisition, tax
expense - - - 4,328 -
Severance costs,
tax benefit - - - - (1,101)
-------- -------- -------- -------- ---------
Income tax
benefit (GAAP) $(22,910) $(32,288) $(26,832) $(14,529) $ (17,010)
======== ======== ======== ======== =========
Diluted loss from
continuing
operations per
common share
reconciliation
Diluted operating
loss from
continuing
operations per
common share $ (.39) $ (.45) $ (.93) $ (.53) $ (.72)
Gain from
acquisition - - - .15 -
Noncash goodwill
impairment charge - - (.50) - (1.45)
Severance costs - - - - (.03)
-------- -------- -------- -------- ---------
Diluted loss
from
continuing
operations per
common share
(GAAP) $ (.39) $ (.45) $ (1.43) $ (.38) $ (2.20)
======== ======== ======== ======== =========
Book value per
common share
reconciliation
Tangible book value
per common share $ 5.62 $ 6.02 $ 6.50 $ 8.85 $ 9.65
Effect of goodwill
and other
intangibles 2.33 2.34 2.35 5.02 5.05
-------- -------- -------- -------- ---------
Book value per
common share
(GAAP) $ 7.95 $ 8.36 $ 8.85 $ 13.87 $ 14.70
======== ======== ======== ======== =========
Efficiency ratio
from continuing
operations
reconciliation
Operating
efficiency ratio
from continuing
operations 75.22 % 78.74 % 68.35 % 73.68 % 75.13 %
Gain from
acquisition - - - (9.96) -
Noncash goodwill
impairment charge - - 33.22 - 101.55
Severance costs - - - - 4.20
-------- -------- -------- -------- ---------
Efficiency
ratio from
continuing
operations
(GAAP) 75.22 % 78.74 % 101.57 % 63.72 % 180.88 %
======== ======== ======== ======== =========
Average equity to
assets
reconciliation
Tangible common
equity to assets 7.13 % 7.37 % 5.36 % 5.77 % 6.09 %
Effect of preferred
equity 2.26 2.16 2.19 2.19 2.15
-------- -------- -------- -------- ---------
Tangible equity
to assets 9.39 9.53 7.55 7.96 8.24
Effect of goodwill
and other
intangibles 2.51 2.41 2.72 2.75 3.32
-------- -------- -------- -------- ---------
Equity to
assets (GAAP) 11.90 % 11.94 % 10.27 % 10.71 % 11.56 %
======== ======== ======== ======== =========
Actual tangible
common equity to
risk-weighted
assets
reconciliation
Tangible common
equity to
risk-weighted
assets 10.03 % 10.39 % 10.67 % 7.49 % 8.03 %
Effect of other
comprehensive
income (.85) (.87) (.90) (.72) (1.00)
Effect of deferred
tax limitation (1.75) (1.27) (.58) (.22) -
Effect of trust
preferred 1.00 .97 .92 .90 .89
Effect of preferred
equity 3.29 3.19 3.04 2.99 2.96
-------- -------- -------- -------- ---------
Tier I capital
ratio
(Regulatory) 11.72 % 12.41 % 13.15 % 10.44 % 10.88 %
======== ======== ======== ======== =========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2010 2009
----------- -----------------------------------------------
First Fourth Third Second First
(in millions) Quarter (1) Quarter (1) Quarter (1) Quarter (1) Quarter
----------- ----------- ----------- ----------- -----------
LOANS BY
CATEGORY
Commercial
(sec. by RE) $ 1,765 $ 1,779 $ 1,787 $ 1,797 $ 1,779
Commercial
construction 357 363 380 379 377
Commercial &
industrial 381 390 403 399 387
----------- ----------- ----------- ----------- -----------
Total
commercial 2,503 2,532 2,570 2,575 2,543
Residential
construction 960 1,050 1,185 1,315 1,430
Residential
mortgage 1,390 1,427 1,461 1,470 1,504
Consumer /
installment 139 142 147 153 156
----------- ----------- ----------- ----------- -----------
Total
loans $ 4,992 $ 5,151 $ 5,363 $ 5,513 $ 5,633
=========== =========== =========== =========== ===========
LOANS BY MARKET
Atlanta MSA $ 1,404 $ 1,435 $ 1,526 $ 1,605 $ 1,660
Gainesville MSA 372 390 402 413 422
North Georgia 1,814 1,884 1,942 1,978 2,014
Western North
Carolina 756 772 786 794 808
Coastal Georgia 388 405 440 455 460
East Tennessee 258 265 267 268 269
----------- ----------- ----------- ----------- -----------
Total
loans $ 4,992 $ 5,151 $ 5,363 $ 5,513 $ 5,633
=========== =========== =========== =========== ===========
RESIDENTIAL
CONSTRUCTION
Dirt loans
Acquisition
&
development $ 290 $ 332 $ 380 $ 413 $ 445
Land loans 124 127 159 159 155
Lot loans 321 336 336 369 390
----------- ----------- ----------- ----------- -----------
Total 735 795 875 941 990
----------- ----------- ----------- ----------- -----------
House loans
Spec 153 178 218 268 317
Sold 72 77 92 106 123
----------- ----------- ----------- ----------- -----------
Total 225 255 310 374 440
----------- ----------- ----------- ----------- -----------
Total
residential
construction $ 960 $ 1,050 $ 1,185 $ 1,315 $ 1,430
=========== =========== =========== =========== ===========
RESIDENTIAL
CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition
&
development $ 66 $ 76 $ 100 $ 124 $ 148
Land loans 43 43 61 63 52
Lot loans 47 52 54 81 98
----------- ----------- ----------- ----------- -----------
Total 156 171 215 268 298
----------- ----------- ----------- ----------- -----------
House loans
Spec 58 68 91 127 164
Sold 14 16 22 29 33
----------- ----------- ----------- ----------- -----------
Total 72 84 113 156 197
----------- ----------- ----------- ----------- -----------
Total
residential
construction $ 228 $ 255 $ 328 $ 424 $ 495
=========== =========== =========== =========== ===========
(1) Excludes total loans of $79.5 million, $85.1 million, $104.0 million
and $109.9 million as of March 31, 2010, December 31, 2009, September 30,
2009 and June 30, 2009, respectively, that are covered by the loss-sharing
agreement with the FDIC, related to the acquisition of Southern Community
Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2010 2009
----------- -----------------------
Linked Year over
First Fourth First Quarter Year
(in millions) Quarter (1) Quarter (1) Quarter Change Change
----------- ----------- ----------- ---------- ----------
LOANS BY
CATEGORY
Commercial
(sec. by RE) $ 1,765 $ 1,779 $ 1,779 $ (14) $ (14)
Commercial
construction 357 363 377 (6) (20)
Commercial &
industrial 381 390 387 (9) (6)
----------- ----------- -----------
Total
commercial 2,503 2,532 2,543 (29) (40)
Residential
construction 960 1,050 1,430 (90) (470)
Residential
mortgage 1,390 1,427 1,504 (37) (114)
Consumer /
installment 139 142 156 (3) (17)
----------- ----------- -----------
Total
loans $ 4,992 $ 5,151 $ 5,633 (159) (641)
=========== =========== ===========
LOANS BY MARKET
Atlanta MSA $ 1,404 $ 1,435 $ 1,660 (31) (256)
Gainesville MSA 372 390 422 (18) (50)
North Georgia 1,814 1,884 2,014 (70) (200)
Western North
Carolina 756 772 808 (16) (52)
Coastal Georgia 388 405 460 (17) (72)
East Tennessee 258 265 269 (7) (11)
----------- ----------- -----------
Total
loans $ 4,992 $ 5,151 $ 5,633 (159) (641)
=========== =========== ===========
RESIDENTIAL
CONSTRUCTION
Dirt loans
Acquisition
&
development $ 290 $ 332 $ 445 (42) (155)
Land loans 124 127 155 (3) (31)
Lot loans 321 336 390 (15) (69)
----------- ----------- -----------
Total 735 795 990 (60) (255)
----------- ----------- -----------
House loans
Spec 153 178 317 (25) (164)
Sold 72 77 123 (5) (51)
----------- ----------- -----------
Total 225 255 440 (30) (215)
----------- ----------- -----------
Total
residential
construction $ 960 $ 1,050 $ 1,430 (90) (470)
=========== =========== ===========
RESIDENTIAL
CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition
&
development $ 66 $ 76 $ 148 (10) (82)
Land loans 43 43 52 - (9)
Lot loans 47 52 98 (5) (51)
----------- ----------- -----------
Total 156 171 298 (15) (142)
----------- ----------- -----------
House loans
Spec 58 68 164 (10) (106)
Sold 14 16 33 (2) (19)
----------- ----------- -----------
Total 72 84 197 (12) (125)
----------- ----------- -----------
Total
residential
construction $ 228 $ 255 $ 495 (27) (267)
=========== =========== ===========
(1) Excludes total loans of $79.5 million, $85.1 million, $104.0 million
and $109.9 million as of March 31, 2010, December 31, 2009, September 30,
2009 and June 30, 2009, respectively, that are covered by the loss-sharing
agreement with the FDIC, related to the acquisition of Southern Community
Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
First Quarter 2010
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
------------ ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 45,918 $ 21,597 $ 67,515
Commercial construction 23,556 14,285 37,841
Commercial & industrial 3,610 - 3,610
------------ ------------ ------------
Total commercial 73,084 35,882 108,966
Residential construction 147,326 74,220 221,546
Residential mortgage 57,920 26,173 84,093
Consumer / installment 2,472 - 2,472
------------ ------------ ------------
Total NPAs $ 280,802 $ 136,275 $ 417,077
============ ============ ============
NPAs BY MARKET
Atlanta MSA $ 81,914 $ 36,951 $ 118,865
Gainesville MSA 17,058 3,192 20,250
North Georgia 109,280 63,128 172,408
Western North Carolina 31,353 8,588 39,941
Coastal Georgia 33,438 21,871 55,309
East Tennessee 7,759 2,545 10,304
------------ ------------ ------------
Total NPAs $ 280,802 $ 136,275 $ 417,077
============ ============ ============
NPA ACTIVITY
Beginning Balance $ 264,092 $ 120,770 $ 384,862
Loans placed on non-accrual 139,030 - 139,030
Payments received (5,733) - (5,733)
Loan charge-offs (58,897) - (58,897)
Foreclosures (49,233) 49,233 -
Capitalized costs - 320 320
Note / property sales (8,457) (25,951) (34,408)
Write downs - (4,579) (4,579)
Net gains (losses) on sales - (3,518) (3,518)
------------ ------------ ------------
Ending Balance $ 280,802 $ 136,275 $ 417,077
============ ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
------------ ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 37,040 $ 15,842 $ 52,882
Commercial construction 19,976 9,761 29,737
Commercial & industrial 3,946 - 3,946
------------ ------------ ------------
Total commercial 60,962 25,603 86,565
Residential construction 142,332 76,519 218,851
Residential mortgage 58,767 18,648 77,415
Consumer / installment 2,031 - 2,031
------------ ------------ ------------
Total NPAs $ 264,092 $ 120,770 $ 384,862
============ ============ ============
NPAs BY MARKET
Atlanta MSA $ 106,536 $ 41,125 $ 147,661
Gainesville MSA 5,074 2,614 7,688
North Georgia 87,598 53,072 140,670
Western North Carolina 29,610 5,096 34,706
Coastal Georgia 26,871 17,150 44,021
East Tennessee 8,403 1,713 10,116
------------ ------------ ------------
Total NPAs $ 264,092 $ 120,770 $ 384,862
============ ============ ============
NPA ACTIVITY
Beginning Balance $ 304,381 $ 110,610 $ 414,991
Loans placed on non-accrual 174,898 - 174,898
Payments received (26,935) - (26,935)
Loan charge-offs (88,427) - (88,427)
Foreclosures (79,983) 79,983 -
Capitalized costs - 981 981
Note / property sales (19,842) (61,228) (81,070)
Write downs - (2,209) (2,209)
Net gains (losses) on sales - (7,367) (7,367)
------------ ------------ ------------
Ending Balance $ 264,092 $ 120,770 $ 384,862
============ ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Third Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
------------ ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 38,379 $ 12,566 $ 50,945
Commercial construction 38,505 5,543 44,048
Commercial & industrial 3,794 - 3,794
------------ ------------ ------------
Total commercial 80,678 18,109 98,787
Residential construction 171,027 79,045 250,072
Residential mortgage 50,626 13,456 64,082
Consumer / installment 2,050 - 2,050
------------ ------------ ------------
Total NPAs $ 304,381 $ 110,610 $ 414,991
============ ============ ============
NPAs BY MARKET
Atlanta MSA $ 120,599 $ 54,670 $ 175,269
Gainesville MSA 12,916 8,429 21,345
North Georgia 96,373 36,718 133,091
Western North Carolina 25,775 5,918 31,693
Coastal Georgia 38,414 3,045 41,459
East Tennessee 10,304 1,830 12,134
------------ ------------ ------------
Total NPAs $ 304,381 $ 110,610 $ 414,991
============ ============ ============
NPA ACTIVITY
Beginning Balance $ 287,848 $ 104,754 $ 392,602
Loans placed on non-accrual 190,164 - 190,164
Payments received (16,597) - (16,597)
Loan charge-offs (92,359) - (92,359)
Foreclosures (56,624) 56,624 -
Capitalized costs - 579 579
Note / property sales (8,051) (47,240) (55,291)
Write downs - (1,906) (1,906)
Net gains (losses) on sales - (2,201) (2,201)
------------ ------------ ------------
Ending Balance $ 304,381 $ 110,610 $ 414,991
============ ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
First Quarter 2010
---------------------------
Net
Charge-Offs
Net to Average
(in thousands) Charge-Offs Loans (2)
------------- ------------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE) $ 1,964 .45%
Commercial construction 2,206 2.48
Commercial & industrial 4,110 4.31
-------------
Total commercial 8,280 1.33
Residential construction 43,100 17.32
Residential mortgage 4,551 1.31
Consumer / installment 737 2.12
-------------
Total $ 56,668 4.51
=============
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 15,545 4.32%
Gainesville MSA 1,675 1.92
North Georgia 29,747 6.51
Western North Carolina 3,695 1.96
Coastal Georgia 5,649 5.74
East Tennessee 357 .55
-------------
Total $ 56,668 4.51
=============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter 2009
---------------------------
Net
Charge-Offs
Net to Average
(in thousands) Charge-Offs Loans (2)
------------- ------------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE) $ 3,896 .86%
Commercial construction 4,717 5.03
Commercial & industrial 153 .15
-------------
Total commercial 8,766 1.36
Residential construction 67,393 23.87
Residential mortgage 7,026 1.93
Consumer / installment 1,400 3.83
-------------
Total $ 84,585 6.37
=============
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 43,595 12.07%
Gainesville MSA 2,273 2.49
North Georgia 18,057 3.57
Western North Carolina 10,091 5.11
Coastal Georgia 8,109 7.72
East Tennessee 2,460 3.67
-------------
Total $ 84,585 6.37
=============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Third Quarter 2009
---------------------------
Net
Charge-Offs
Net to Average
(in thousands) Charge-Offs Loans (2)
------------- ------------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE) $ 10,568 2.33%
Commercial construction 4,369 4.55
Commercial & industrial 1,792 1.76
-------------
Total commercial 16,729 2.57
Residential construction 67,520 21.31
Residential mortgage 5,051 1.36
Consumer / installment 1,191 3.13
-------------
Total $ 90,491 6.57
=============
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 50,129 12.61%
Gainesville MSA 1,473 1.60
North Georgia 24,017 4.74
Western North Carolina 3,949 1.98
Coastal Georgia 10,051 8.78
East Tennessee 872 1.30
-------------
Total $ 90,491 6.57
=============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Three Months Ended
March 31,
----------------------
(in thousands, except per share data) 2010 2009
---------- ----------
Interest revenue:
Loans, including fees $ 72,215 $ 81,880
Investment securities, including tax exempt of
$311 and $319 16,203 20,752
Federal funds sold, commercial paper and deposits
in banks 938 442
---------- ----------
Total interest revenue 89,356 103,074
---------- ----------
Interest expense:
Deposits:
NOW 1,854 3,337
Money market 1,757 2,237
Savings 84 127
Time 20,198 36,053
---------- ----------
Total deposit interest expense 23,893 41,754
Federal funds purchased, repurchase agreements and
other short-term borrowings 1,038 553
Federal Home Loan Bank advances 977 1,074
Long-term debt 2,662 2,769
---------- ----------
Total interest expense 28,570 46,150
---------- ----------
Net interest revenue 60,786 56,924
Provision for loan losses 75,000 65,000
---------- ----------
Net interest revenue after provision for loan
losses (14,214) (8,076)
---------- ----------
Fee revenue:
Service charges and fees 7,447 7,034
Mortgage loan and other related fees 1,479 2,651
Brokerage fees 567 689
Securities gains, net 61 303
Other 2,112 1,146
---------- ----------
Total fee revenue 11,666 11,823
---------- ----------
Total revenue (2,548) 3,747
---------- ----------
Operating expenses:
Salaries and employee benefits 24,360 27,313
Communications and equipment 3,273 3,646
Occupancy 3,814 3,769
Advertising and public relations 1,043 1,044
Postage, printing and supplies 1,225 1,175
Professional fees 1,943 3,281
Foreclosed preoperty 10,813 4,319
FDIC assessments and other regulatory charges 3,626 2,682
Amortization of intangibles 802 739
Other 3,921 3,820
Goodwill impairment - 70,000
Severance costs - 2,898
---------- ----------
Total operating expenses 54,820 124,686
---------- ----------
Loss from continuing operations before income
taxes (57,368) (120,939)
Income tax benefit (22,910) (17,010)
---------- ----------
Net loss from continuing operations (34,458) (103,929)
(Loss) income from discontinued operations, net
of income taxes (101) 156
Gain from sale of subsidiary, net of income
taxes and selling costs 1,266 -
---------- ----------
Net loss (33,293) (103,773)
Preferred stock dividends and discount accretion 2,572 2,554
---------- ----------
Net loss available to common shareholders $ (35,865) $ (106,327)
========== ==========
Loss from continuing operations per common share -
Basic / Diluted $ (.39) $ (2.20)
Loss per common share - Basic / Diluted (.38) (2.20)
Weighted average common shares outstanding - Basic
/ Diluted 94,390 48,324
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Revised for Discontinued Operations
-------------------------------------------------
(in thousands, except
per share data) 1Q10 4Q09 3Q09 2Q09 1Q09
-------- -------- -------- -------- ---------
Interest revenue:
Loans, including fees $ 72,215 $ 78,064 $ 80,874 $ 81,691 $ 81,880
Investment securities,
including tax exempt 16,203 17,313 18,820 20,485 20,752
Federal funds sold,
commercial paper and
deposits in banks 938 1,503 907 98 442
-------- -------- -------- -------- ---------
Total interest
revenue 89,356 96,880 100,601 102,274 103,074
-------- -------- -------- -------- ---------
Interest expense:
Deposits:
NOW 1,854 2,315 2,528 2,843 3,337
Money market 1,757 2,328 2,711 2,269 2,237
Savings 84 105 130 121 127
Time 20,198 24,026 28,183 32,064 36,053
-------- -------- -------- -------- ---------
Total deposit
interest expense 23,893 28,774 33,552 37,297 41,754
Federal funds purchased,
repurchase agreements
and other short-term
borrowings 1,038 1,081 613 595 553
Federal Home Loan Bank
advances 977 1,045 1,300 1,203 1,074
Long-term debt 2,662 2,652 2,712 2,760 2,769
-------- -------- -------- -------- ---------
Total interest expense 28,570 33,552 38,177 41,855 46,150
-------- -------- -------- -------- ---------
Net interest revenue 60,786 63,328 62,424 60,419 56,924
Provision for loan
losses 75,000 90,000 95,000 60,000 65,000
-------- -------- -------- -------- ---------
Net interest revenue
after provision for
loan losses (14,214) (26,672) (32,576) 419 (8,076)
-------- -------- -------- -------- ---------
Fee revenue:
Service charges and
fees 7,447 8,257 8,138 7,557 7,034
Mortgage loan and other
related fees 1,479 1,651 1,832 2,825 2,651
Brokerage fees 567 443 456 497 689
Securities gains
(losses), net 61 2,015 1,149 (711) 303
Gain from acquisition - - - 11,390 -
Other 2,112 2,081 1,814 1,137 1,146
-------- -------- -------- -------- ---------
Total fee revenue 11,666 14,447 13,389 22,695 11,823
-------- -------- -------- -------- ---------
Total revenue (2,548) (12,225) (19,187) 23,114 3,747
-------- -------- -------- -------- ---------
Operating expenses:
Salaries and employee
benefits 24,360 24,061 23,889 26,305 27,313
Communications and
equipment 3,273 3,819 3,640 3,571 3,646
Occupancy 3,814 4,003 4,063 3,818 3,769
Advertising and public
relations 1,043 958 823 1,125 1,044
Postage, printing and
supplies 1,225 1,307 1,270 1,288 1,175
Professional fees 1,943 2,646 2,358 3,195 3,281
Foreclosed preoperty 10,813 14,391 7,918 5,737 4,319
FDIC assessments and
other regulatory
charges 3,626 3,711 2,801 6,810 2,682
Amortization of
intangibles 802 813 813 739 739
Other 3,921 4,417 3,851 1,122 3,820
Goodwill impairment - - 25,000 - 70,000
Severance costs - - - - 2,898
-------- -------- -------- -------- ---------
Total operating
expenses 54,820 60,126 76,426 53,710 124,686
-------- -------- -------- -------- ---------
Loss from continuing
operations before
income taxes (57,368) (72,351) (95,613) (30,596) (120,939)
Income tax benefit (22,910) (32,288) (26,832) (14,529) (17,010)
-------- -------- -------- -------- ---------
Net loss from
continuing operations (34,458) (40,063) (68,781) (16,067) (103,929)
(Loss) income from
discontinued
operations, net of
income taxes (101) 228 63 66 156
Gain from sale of
subsidiary, net of
income taxes and
selling costs 1,266 - - - -
-------- -------- -------- -------- ---------
Net loss (33,293) (39,835) (68,718) (16,001) (103,773)
Preferred stock
dividends and discount
accretion 2,572 2,567 2,562 2,559 2,554
-------- -------- -------- -------- ---------
Net loss available to
common shareholders $(35,865) $(42,402) $(71,280) $(18,560) $(106,327)
======== ======== ======== ======== =========
Loss from continuing
operations per common
share - Basic / Diluted $ (.39) $ (.45) $ (1.43) $ (.38) $ (2.20)
Loss per common share -
Basic / Diluted (.38) (.45) (1.43) (.38) (2.20)
Weighted average common
shares outstanding -
Basic / Diluted 94,390 94,219 49,771 48,794 48,324
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share and per March 31, December 31, March 31,
share data) 2010 2009 2009
----------- ------------ -----------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 105,613 $ 126,265 $ 103,707
Interest-bearing deposits in
banks 99,893 120,382 5,792
Federal funds sold, commercial
paper and short-term investments 183,049 129,720 24,983
----------- ------------ -----------
Cash and cash equivalents 388,555 376,367 134,482
Securities available for sale 1,526,589 1,530,047 1,719,033
Mortgage loans held for sale 21,998 30,226 43,161
Loans, net of unearned income
(including $72,889 held for sale
at March 31, 2010) 4,992,045 5,151,476 5,632,705
Less allowance for loan
losses 173,934 155,602 143,990
----------- ------------ -----------
Loans, net 4,818,111 4,995,874 5,488,715
Assets covered by loss sharing
agreements with the FDIC 169,287 185,938 -
Premises and equipment, net 181,217 182,038 178,980
Accrued interest receivable 30,492 33,867 45,514
Goodwill and other intangible
assets 224,394 225,196 251,060
Foreclosed property 136,275 120,770 75,383
Other assets 340,100 319,591 235,335
----------- ------------ -----------
Total assets $ 7,837,018 $ 7,999,914 $ 8,171,663
=========== ============ ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $ 740,727 $ 707,826 $ 665,447
NOW 1,344,973 1,335,790 1,284,791
Money market 729,283 713,901 500,261
Savings 186,699 177,427 177,001
Time:
Less than $100,000 1,643,059 1,746,511 1,911,627
Greater than $100,000 1,132,034 1,187,499 1,350,190
Brokered 710,813 758,880 727,171
----------- ------------ -----------
Total deposits 6,487,588 6,627,834 6,616,488
Federal funds purchased,
repurchase agreements, and
other short-term borrowings 102,480 101,389 158,690
Federal Home Loan Bank advances 114,303 114,501 260,125
Long-term debt 150,086 150,066 151,006
Accrued expenses and other
liabilities 56,666 43,803 96,501
----------- ------------ -----------
Total liabilities 6,911,123 7,037,593 7,282,810
----------- ------------ -----------
Shareholders' equity:
Preferred stock, $1 par value;
10,000,000 shares authorized;
Series A; $10 stated
value; 21,700, 21,700 and
25,800 shares issued and
outstanding 217 217 258
Series B; $1,000 stated value;
180,000 shares issued and
outstanding 174,727 174,408 173,480
Common stock, $1 par value;
100,000,000 shares authorized;
94,175,857, 94,045,603 and
48,809,301 shares issued 94,176 94,046 48,809
Common stock issuable; 262,002,
221,906 and 161,807 shares 4,127 3,597 3,270
Capital surplus 622,803 622,034 452,277
Retained earnings (accumulated
deficit) (15,481) 20,384 158,201
Treasury stock; 322,603 shares,
at cost - - (5,992)
Accumulated other comprehensive
income 45,326 47,635 58,550
----------- ------------ -----------
Total shareholders' equity 925,895 962,321 888,853
----------- ------------ -----------
Total liabilities and
shareholders' equity $ 7,837,018 $ 7,999,914 $ 8,171,663
=========== ============ ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2010
---------- ----------- ----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
---------- ----------- ----------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $5,172,847 $ 72,219 5.66%
Taxable securities (3) 1,487,646 15,892 4.27
Tax-exempt securities (1)(3) 30,050 509 6.78
Federal funds sold and other
interest-earning assets 394,348 1,229 1.25
---------- -----------
Total interest-earning assets 7,084,891 89,849 5.13
---------- -----------
Non-interest-earning assets:
Allowance for loan losses (187,288)
Cash and due from banks 104,545
Premises and equipment 181,927
Other assets (3) 762,228
----------
Total assets $7,946,303
==========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $1,361,696 $ 1,854 .55
Money market 723,470 1,757 .98
Savings 180,448 84 .19
Time less than $100,000 1,692,652 8,891 2.13
Time greater than $100,000 1,155,776 6,770 2.38
Brokered 736,999 4,537 2.50
---------- -----------
Total interest-bearing deposits 5,851,041 23,893 1.66
---------- -----------
Federal funds purchased and other
borrowings 102,058 1,038 4.12
Federal Home Loan Bank advances 114,388 977 3.46
Long-term debt 150,078 2,662 7.19
---------- -----------
Total borrowed funds 366,524 4,677 5.18
---------- -----------
Total interest-bearing
liabilities 6,217,565 28,570 1.86
-----------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 718,975
Other liabilities 64,337
----------
Total liabilities 7,000,877
Shareholders' equity 945,426
----------
Total liabilities and
shareholders' equity $7,946,303
==========
Net interest revenue $ 61,279
===========
Net interest-rate spread 3.27%
==========
Net interest margin (4) 3.49%
==========
(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.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $43.2 million and $10.6 million in 2010 and 2009,
respectively, are included in other assets for purposes of this
presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2009
---------- ----------- ----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
---------- ----------- ----------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $5,675,054 $ 81,749 5.84%
Taxable securities (3) 1,682,603 20,433 4.86
Tax-exempt securities (1)(3) 30,051 522 6.95
Federal funds sold and other
interest-earning assets 142,522 858 2.41
---------- -----------
Total interest-earning assets 7,530,230 103,562 5.56
---------- -----------
Non-interest-earning assets:
Allowance for loan losses (128,798)
Cash and due from banks 104,411
Premises and equipment 179,495
Other assets (3) 686,943
----------
Total assets $8,372,281
==========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $1,358,149 $ 3,337 1.00
Money market 477,325 2,237 1.90
Savings 172,708 127 .30
Time less than $100,000 1,942,897 17,217 3.59
Time greater than $100,000 1,393,188 12,825 3.73
Brokered 786,171 6,011 3.10
---------- -----------
Total interest-bearing deposits 6,130,438 41,754 2.76
---------- -----------
Federal funds purchased and other
borrowings 150,517 553 1.49
Federal Home Loan Bank advances 204,941 1,074 2.13
Long-term debt 150,997 2,769 7.44
---------- -----------
Total borrowed funds 506,455 4,396 3.52
---------- -----------
Total interest-bearing
liabilities 6,636,893 46,150 2.82
-----------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 650,093
Other liabilities 117,790
----------
Total liabilities 7,404,776
Shareholders' equity 967,505
----------
Total liabilities and
shareholders' equity $8,372,281
==========
Net interest revenue $ 57,412
===========
Net interest-rate spread 2.74%
==========
Net interest margin (4) 3.08%
==========
(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.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $43.2 million and $10.6 million in 2010 and 2009,
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.
For more information: Rex S. Schuette Chief Financial Officer (706) 781-2266 Email Contact
SOURCE: United Community Banks, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=8BDD07AF8D62AA96
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