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United Community Banks, Inc. Reports Net Operating Loss for Second Quarter 2009
United Community Banks, Inc. Reports Net Operating Loss for Second Quarter 2009
Jul 24, 2009
BLAIRSVILLE, GA, Jul 24, 2009 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
-- Provision for loan losses of $60 million exceeded charge-offs by $1.7
million
-- Allowance-to-loans ratio of 2.64 percent, up from 2.56 percent last
quarter
-- Further margin improvement of 20 basis points this quarter to 3.28
percent
-- Acquisition of Southern Community Bank added $230 million of covered
assets and $200 million of customer deposits with a gain on acquisition of
$11.4 million
-- Capital levels remain strong
United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $23.1 million, or 53 cents per diluted share, for the second quarter of 2009. The net operating loss reflects elevated credit costs, including $60 million provision for loan losses. Net operating loss does not reflect an acquisition gain of $11.4 million related to the purchase of Southern Community Bank from the FDIC, which is considered a non-recurring item and excluded from operating earnings. Including this non-recurring gain the net loss for the quarter was $16.0 million, or 38 cents per diluted share.
United's net operating loss for the first six months of 2009 was $55.0 million, or $1.24 per diluted share. The net operating loss for the first six months does not reflect a $70 million non-cash charge for impairment of goodwill and $2.9 million in severance costs relating to a reduction in work force that were incurred during the first quarter and the $11.4 million gain on acquisition in the second quarter, all of which are considered non-recurring items and are therefore excluded from operating earnings. Including these non-recurring items the net loss for the first six months was of 2009 $119.8 million, or $2.57 per diluted share.
"We continued our strategy of aggressively disposing of problem credits," stated Jimmy Tallent, president and chief executive officer. "At the same time, we are sharply focused on building core earnings through stronger customer relationships and core deposits."
"As part of that strategy, we acquired Southern Community Bank in an FDIC assisted transaction which will allow us to deepen our market share in the south side of metro Atlanta," added Tallent. "Southern Community Bank brings $208 million in customer deposits, along with 60 experienced employees in five offices. The acquisition of Southern Community Bank and its locations provided a good fit into the existing United market. Four of the new offices fill a gap in the south side of the Atlanta market. The other office will be closed and then we will merge one of our existing offices into their superior location in the same market. Further, through our discounted bid and the loss share agreement, we have substantially eliminated all credit related exposure associated with the transaction. So, we have classified Southern's loans, foreclosed properties and FDIC receivable into one category and line on the balance sheet -- 'covered assets.' These covered assets are excluded from all credit quality disclosures and ratios. In addition, the transaction provided United with capital through the after-tax gain of $7.1 million."
Total loans were $5.5 billion at quarter-end, down $120 million from last quarter and $420 million from a year ago, reflecting the company's continued efforts to reduce exposure to the residential construction market. At June 30, 2009, residential construction loans were $1.3 billion, or 24 percent of total loans, a decrease of $430 million from a year ago and $115 million from the first quarter of 2009.
Taxable equivalent net interest revenue of $60.9 million reflected an increase of $3.5 million from last quarter and a decrease of $871 thousand from a year ago. The taxable equivalent net interest margin was 3.28 percent compared with 3.08 percent for the first quarter of 2009 and 3.32 percent for the second quarter of 2008.
"The improvement in our net interest margin this quarter reflects a continuation of the program we began in the latter part of 2008 to improve loan and deposit pricing," stated Tallent. "We maintained our loan pricing and credit spreads, decreased deposit interest rates and, with sustained liquidity, we were able to let higher-cost time deposits and brokered deposits run off. We will continue to actively pursue these strategies to improve our margin in 2009, while balancing liquidity needs with our goal of maximizing pre-tax, pre-provision core earnings."
"Excluding public funds and the acquisition, core deposits increased $129 million this quarter, or 12 percent on an annualized basis, reflective of the United Express program for customer referrals and cross selling," stated Tallent. "We added 13,884 new services this quarter and opened 6,575 net new deposit accounts year-to-date."
The second quarter provision for loan losses was $60 million, compared with $65 million for the first quarter of 2009. Net charge-offs for the second quarter were $58.3 million compared with $43.3 million for the first quarter of 2009. At quarter-end, non-performing assets totaled $392.6 million compared with $334.5 million at March 31, 2009. The ratio of non-performing assets to total assets at the end of the second and first quarters was 4.67 percent and 4.11 percent, respectively. The allowance for loan losses to total loans was 2.64 percent and 2.56 percent, respectively.
"Credit quality continues to be a primary area of focus for us, particularly within the Atlanta residential construction portfolio," Tallent said. "While we have seen some problem credits in other loan categories and markets, our principal challenge remains in the residential construction portfolio. We have seen a rise in all categories of non-performing assets, but the inflow is still driven by the continued weakness in the housing and construction markets. We will continue to aggressively work through our problem credits and pursue the best economic outcome for our company in each instance."
Operating fee revenue of $13.1 million was up $204 thousand from last quarter and down $2.1 million from a year ago, excluding the $11.4 million gain from the acquisition of Southern Community Bank. Service charges and fees on deposit accounts of $7.6 million reflected a $400 thousand decrease from a year ago due to lower activity and fewer transaction charges. Consulting fees were down $507 thousand from last year due to weakness in the market. However, consulting fees increased $724 thousand from the first quarter, reflecting a shift back to non-United projects. Mortgage loan fees of $2.8 million were up $623 thousand from a year ago due to a high level of refinancing activity.
Operating expenses for the second quarter of 2009 were $55.3 million reflecting a $5.6 million increase from last year. The increase was primarily due to higher foreclosed property costs of $2.9 million and an increase in FDIC insurance premiums of $5.5 million, including a $3.7 million special assessment. Salaries and employee benefit costs of $28.1 million decreased $695 thousand from a year ago. The decrease from last year and linked quarter was primarily due to the reduction in work force, down 165 staff year-to-date and offset partially by higher mortgage commissions and incentive program costs and the 60 staff added by the acquisition. Other expenses of $1.2 million decreased $2.2 million from last year due to the $2.0 million expense recovery related to the decision to reverse the surrender of bank owned life insurance policies in the second quarter.
The effective tax rate for the second quarter of 2009 was 47.5 percent, compared to 35.5 percent for the second quarter of 2008. The tax rate was higher this quarter reflective of a $2.9 million tax adjustment recorded in the second quarter due to reversing the surrender of bank owned life insurance policies. The projected effective tax rate for the balance of 2009 is 38 percent.
At June 30, 2009, the company's regulatory capital ratios were as follows: Tier I Risk-Based Capital of 10.6 percent; Leverage of 7.8 percent; and, Total Risk-Based of 13.3 percent. Also, the average tangible equity to assets ratio was 8.0 percent, the average tangible common equity to assets ratio was 5.8 percent and the tangible common equity to risk weighted assets was 7.5 percent.
"Today, based on our stress models of the loan portfolio and ranges of losses through 2010, we believe our capital position is sound," stated Tallent. "Assuming we incur these losses, our models still indicate all regulatory capital ratios will remain above well capitalized levels. But if the credit cycle lengthens, if the economy worsens beyond what our models have assumed, or if there would be compelling reasons to offensively add additional capital, we clearly will do what is best for the long-term success of the company. Our absolute goal is financial soundness balanced with creating and retaining shareholder value."
Conference Call
United Community Banks will hold a conference call today, Friday, July 24, 2009, 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 (866) 431-5320 and use the password 'UCBI.' 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. The Investor Presentation for Second Quarter 2009 can be accessed on the website by selecting 'Presentations' within the Investor Relations section.
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 $8.4 billion and operates 27 community banks with 110 banking offices located 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
2009 2008
------------------------- ------------
(in thousands, except per share Second First Fourth
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- ------------
INCOME SUMMARY
Interest revenue $ 102,737 $ 103,562 $ 108,434
Interest expense 41,855 46,150 56,561
----------- ----------- ------------
Net interest revenue 60,882 57,412 51,873
Provision for loan losses 60,000 65,000 85,000
Operating fee revenue (1) 13,050 12,846 10,718
----------- ----------- ------------
Total operating revenue 13,932 5,258 (22,409)
Operating expenses (2) 55,348 52,569 52,439
----------- ----------- ------------
Operating (loss) income before
taxes (41,416) (47,311) (74,848)
Income tax (benefit) expense (18,353) (15,335) (28,101)
----------- ----------- ------------
Net operating (loss) income
(1)(2) (23,063) (31,976) (46,747)
Gain from acquisition, net of tax
benefit 7,062 - -
Noncash goodwill impairment
charge - (70,000) -
Severance costs, net of tax
benefit - (1,797) -
----------- ----------- ------------
Net (loss) income (16,001) (103,773) (46,747)
Preferred dividends and discount
accretion 2,559 2,554 712
----------- ----------- ------------
Net (loss) income available to
common shareholders $ (18,560) $ (106,327) $ (47,459)
=========== =========== ============
PERFORMANCE MEASURES
Per common share:
Diluted operating (loss)
earnings (1)(2) $ (.53) $ (.71) $ (.99)
Diluted (loss) earnings (.38) (2.20) (.99)
Cash dividends declared - - -
Stock dividends declared (6) 1 for 130 1 for 130 1 for 130
Book value 13.87 14.70 16.95
Tangible book value (4) 8.85 9.65 10.39
Key performance ratios:
Return on equity (3)(5) (11.42)% (58.28)% (23.83)%
Return on assets (5) (.79) (5.06) (2.20)
Net interest margin (5) 3.28 3.08 2.70
Operating efficiency ratio
(1)(2)(4) 74.15 75.15 81.34
Equity to assets 10.76 11.64 10.08
Tangible equity to assets (4) 8.00 8.30 6.59
Tangible common equity to
assets (4) 5.81 6.13 6.23
Tangible common equity to
risk-weighted assets (4) 7.48 8.03 8.34
ASSET QUALITY *
Non-performing loans (NPLs) $ 287,848 $ 259,155 $ 190,723
Foreclosed properties 104,754 75,383 59,768
----------- ----------- ------------
Total non-performing assets
(NPAs) 392,602 334,538 250,491
Allowance for loan losses 145,678 143,990 122,271
Net charge-offs 58,312 43,281 74,028
Allowance for loan losses to
loans 2.64% 2.56% 2.14%
Net charge-offs to average
loans (5) 4.18 3.09 5.09
NPAs to loans and foreclosed
properties 6.99 5.86 4.35
NPAs to total assets 4.67 4.11 2.94
AVERAGE BALANCES
Loans $ 5,597,259 $ 5,675,054 $ 5,784,139
Investment securities 1,771,482 1,712,654 1,508,808
Earning assets 7,442,178 7,530,230 7,662,536
Total assets 8,168,147 8,312,648 8,449,097
Deposits 6,544,537 6,780,531 6,982,229
Shareholders' equity 879,210 967,505 851,956
Common shares - basic 48,794 48,324 47,844
Common shares - diluted 48,794 48,324 47,844
AT PERIOD END
Loans $ 5,513,087 $ 5,632,705 $ 5,704,861
Investment securities 1,816,787 1,719,033 1,617,187
Total assets 8,403,046 8,140,909 8,520,765
Deposits 6,848,760 6,616,488 7,003,624
Shareholders' equity 855,272 888,853 989,382
Common shares outstanding 48,933 48,487 48,009
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2008 Second
------------------------- Quarter
(in thousands, except per share Third Second 2009-2008
data; taxable equivalent) Quarter Quarter Change
----------- ------------ -----------
INCOME SUMMARY
Interest revenue $ 112,510 $ 116,984
Interest expense 53,719 55,231
----------- ------------
Net interest revenue 58,791 61,753 (1)%
Provision for loan losses 76,000 15,500
Operating fee revenue (1) 13,121 15,105 (14)
----------- ------------
Total operating revenue (4,088) 61,358 NM
Operating expenses (2) 56,970 49,761 11
----------- ------------
Operating (loss) income before
taxes (61,058) 11,597 NM
Income tax (benefit) expense (21,184) 4,504
----------- ------------
Net operating (loss) income
(1)(2) (39,874) 7,093 NM
Gain from acquisition, net of tax
benefit - -
Noncash goodwill impairment
charge - -
Severance costs, net of tax
benefit - -
----------- ------------
Net (loss) income (39,874) 7,093 NM
Preferred dividends and discount
accretion 4 4
----------- ------------
Net (loss) income available to
common shareholders $ (39,878) $ 7,089 NM
=========== ============
PERFORMANCE MEASURES
Per common share:
Diluted operating (loss)
earnings (1)(2) $ (.84) $ .15 NM
Diluted (loss) earnings (.84) .15 NM
Cash dividends declared - .09
Stock dividends declared (6) 1 for 130 -
Book value 17.12 17.75 (22)
Tangible book value (4) 10.48 11.03 (20)
Key performance ratios:
Return on equity (3)(5) (19.07)% 3.41%
Return on assets (5) (1.95) .34
Net interest margin (5) 3.17 3.32
Operating efficiency ratio
(1)(2)(4) 79.35 65.05
Equity to assets 10.28 10.33
Tangible equity to assets (4) 6.65 6.77
Tangible common equity to
assets (4) 6.65 6.77
Tangible common equity to
risk-weighted assets (4) 8.26 8.51
ASSET QUALITY *
Non-performing loans (NPLs) $ 139,266 $ 123,786
Foreclosed properties 38,438 28,378
----------- ------------
Total non-performing assets
(NPAs) 177,704 152,164
Allowance for loan losses 111,299 91,035
Net charge-offs 55,736 14,313
Allowance for loan losses to
loans 1.91% 1.53%
Net charge-offs to average
loans (5) 3.77 .97
NPAs to loans and foreclosed
properties 3.03 2.55
NPAs to total assets 2.20 1.84
AVERAGE BALANCES
Loans $ 5,889,168 $ 5,933,143 (6)
Investment securities 1,454,740 1,507,240 18
Earning assets 7,384,287 7,478,018 -
Total assets 8,146,880 8,295,748 (2)
Deposits 6,597,339 6,461,361 1
Shareholders' equity 837,487 856,727 3
Common shares - basic 47,417 47,158
Common shares - diluted 47,417 47,249
AT PERIOD END
Loans $ 5,829,937 $ 5,933,141 (7)
Investment securities 1,400,827 1,430,588 27
Total assets 8,072,543 8,264,051 2
Deposits 6,689,335 6,696,456 2
Shareholders' equity 816,880 837,890 2
Common shares outstanding 47,596 47,096
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Six
Months Ended YTD
(in thousands, except per share ------------------------- 2009-2008
data; taxable equivalent) 2009 2008 Change
----------- ------------ -----------
INCOME SUMMARY
Interest revenue $ 206,299 $ 246,025
Interest expense 88,005 117,985
----------- ------------
Net interest revenue 118,294 128,040 (8)%
Provision for loan losses 125,000 23,000
Operating fee revenue (1) 25,896 29,302 (12)
----------- ------------
Total operating revenue 19,190 134,342 NM
Operating expenses (2) 107,917 97,290 11
----------- ------------
Operating (loss) income before
taxes (88,727) 37,052 NM
Income tax (benefit) expense (33,688) 13,881
----------- ------------
Net operating (loss) income
(1)(2) (55,039) 23,171 NM
Gain from acquisition, net of tax
benefit 7,062 -
Noncash goodwill impairment
charge (70,000) -
Severance costs, net of tax
benefit (1,797) -
----------- ------------
Net (loss) income (119,774) 23,171 NM
Preferred dividends and discount
accretion 5,113 8
----------- ------------
Net (loss) income available to
common shareholders $ (124,887) $ 23,163 NM
=========== ============
PERFORMANCE MEASURES
Per common share:
Diluted operating (loss)
earnings (1)(2) $ (1.24) $ .49 NM
Diluted (loss) earnings (2.57) .49 NM
Cash dividends declared - .18
Stock dividends declared (6) 2 for 130 -
Book value 13.87 17.75 (22)
Tangible book value (4) 8.85 11.03 (20)
Key performance ratios:
Return on equity (3)(5) (36.20)% 5.61%
Return on assets (5) (2.93) .56
Net interest margin (5) 3.18 3.43
Operating efficiency ratio
(1)(2)(4) 74.63 61.97
Equity to assets 11.20 10.31
Tangible equity to assets (4) 8.15 6.75
Tangible common equity to
assets (4) 5.97 6.75
Tangible common equity to
risk-weighted assets (4) 7.48 8.51
ASSET QUALITY *
Non-performing loans (NPLs) $ 287,848 $ 123,786
Foreclosed properties 104,754 28,378
----------- ------------
Total non-performing assets
(NPAs) 392,602 152,164
Allowance for loan losses 145,678 91,035
Net charge-offs 101,593 21,388
Allowance for loan losses to
loans 2.64% 1.53%
Net charge-offs to average
loans (5) 3.64 .72
NPAs to loans and foreclosed
properties 6.99 2.55
NPAs to total assets 4.67 1.84
AVERAGE BALANCES
Loans $ 5,635,942 $ 5,945,720 (5)
Investment securities 1,742,231 1,496,377 16
Earning assets 7,485,961 7,484,749 -
Total assets 8,239,997 8,300,686 (1)
Deposits 6,661,881 6,256,217 6
Shareholders' equity 923,114 856,193 8
Common shares - basic 48,560 47,105
Common shares - diluted 48,560 47,260
AT PERIOD END
Loans $ 5,513,087 $ 5,933,141 (7)
Investment securities 1,816,787 1,430,588 27
Total assets 8,403,046 8,264,051 2
Deposits 6,848,760 6,696,456 2
Shareholders' equity 855,272 837,890 2
Common shares outstanding 48,933 47,096
(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. (2) Excludes the
non-recurring goodwill impairment charge of $70 million and severance costs
of $2.9 million, net of income tax benefit of $1.1 million in the first
quarter of 2009. (3) Net income available to common shareholders, which
excludes 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. NM - Not meaningful.
* Excludes covered loans and covered NPAs
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
2009
---------------------------
(in thousands, except per share Second First
data; taxable equivalent) Quarter Quarter
------------ ------------
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 102,737 $ 103,562
Taxable equivalent adjustment (463) (488)
------------ ------------
Interest revenue (GAAP) $ 102,274 $ 103,074
============ ============
Net interest revenue reconciliation
Net interest revenue - taxable equivalent $ 60,882 $ 57,412
Taxable equivalent adjustment (463) (488)
------------ ------------
Net interest revenue (GAAP) $ 60,419 $ 56,924
============ ============
Fee revenue reconciliation
Operating fee revenue $ 13,050 $ 12,846
Gain from acquisition 11,390 -
------------ ------------
Fee revenue (GAAP) $ 24,440 $ 12,846
============ ============
Total revenue reconciliation
Total operating revenue $ 13,932 $ 5,258
Taxable equivalent adjustment (463) (488)
Gain from acquisition 11,390 -
------------ ------------
Total revenue (GAAP) $ 24,859 $ 4,770
============ ============
Expense reconciliation
Operating expense $ 55,348 $ 52,569
Noncash goodwill impairment charge - 70,000
Severance costs - 2,898
------------ ------------
Operating expense (GAAP) $ 55,348 $ 125,467
============ ============
(Loss) income before taxes reconciliation
Operating (loss) income before taxes $ (41,416) $ (47,311)
Taxable equivalent adjustment (463) (488)
Gain from acquisition 11,390 -
Noncash goodwill impairment charge - (70,000)
Severance costs - (2,898)
------------ ------------
(Loss) income before taxes (GAAP) $ (30,489) $ (120,697)
============ ============
Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense $ (18,353) $ (15,335)
Taxable equivalent adjustment (463) (488)
Gain from acquisition, tax expense 4,328 -
Severance costs, tax benefit - (1,101)
------------ ------------
Income tax (benefit) expense (GAAP) $ (14,488) $ (16,924)
============ ============
(Loss) earnings per common share
reconciliation
Operating (loss) earnings per common share $ (0.53) $ (0.71)
Gain from acquisition 0.15 -
Noncash goodwill impairment charge - (1.45)
Severance costs - (0.04)
------------ ------------
(Loss) earnings per common share (GAAP) $ (0.38) $ (2.20)
============ ============
Book value reconciliation
Tangible book value $ 8.85 $ 9.65
Effect of goodwill and other intangibles 5.02 5.05
------------ ------------
Book value (GAAP) $ 13.87 $ 14.70
============ ============
Efficiency ratio reconciliation
Operating efficiency ratio 74.15% 75.15%
Gain from acquisition (9.82) -
Noncash goodwill impairment charge - 100.06
Severance costs - 4.14
------------ ------------
Efficiency ratio (GAAP) 64.33% 179.35%
============ ============
Average equity to assets reconciliation
Tangible common equity to assets 5.81% 6.13%
Effect of preferred equity 2.19 2.17
------------ ------------
Tangible equity to assets 8.00 8.30
Effect of goodwill and other intangibles 2.76 3.34
------------ ------------
Equity to assets (GAAP) 10.76% 11.64%
============ ============
Actual tangible common equity to risk-weighted
assets reconciliation
Tangible common equity to risk-weighted assets 7.48% 8.03%
Effect of other comprehensive income (.72) (1.00)
Effect of trust preferred .89 .89
Effect of preferred equity 3.00 2.96
------------ ------------
Tier I capital ratio (Regulatory) 10.65% 10.88%
============ ============
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
2008
----------------------------------
(in thousands, except per share Fourth Third Second
data; taxable equivalent) Quarter Quarter Quarter
---------- ---------- ----------
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 108,434 $ 112,510 $ 116,984
Taxable equivalent adjustment (553) (571) (606)
---------- ---------- ----------
Interest revenue (GAAP) $ 107,881 $ 111,939 $ 116,378
========== ========== ==========
Net interest revenue reconciliation
Net interest revenue - taxable
equivalent $ 51,873 $ 58,791 $ 61,753
Taxable equivalent adjustment (553) (571) (606)
---------- ---------- ----------
Net interest revenue (GAAP) $ 51,320 $ 58,220 $ 61,147
========== ========== ==========
Fee revenue reconciliation
Operating fee revenue $ 10,718 $ 13,121 $ 15,105
Gain from acquisition - - -
---------- ---------- ----------
Fee revenue (GAAP) $ 10,718 $ 13,121 $ 15,105
========== ========== ==========
Total revenue reconciliation
Total operating revenue $ (22,409) $ (4,088) $ 61,358
Taxable equivalent adjustment (553) (571) (606)
Gain from acquisition - - -
---------- ---------- ----------
Total revenue (GAAP) $ (22,962) $ (4,659) $ 60,752
========== ========== ==========
Expense reconciliation
Operating expense $ 52,439 $ 56,970 $ 49,761
Noncash goodwill impairment charge - - -
Severance costs - - -
---------- ---------- ----------
Operating expense (GAAP) $ 52,439 $ 56,970 $ 49,761
========== ========== ==========
(Loss) income before taxes
reconciliation
Operating (loss) income before taxes $ (74,848) $ (61,058) $ 11,597
Taxable equivalent adjustment (553) (571) (606)
Gain from acquisition - - -
Noncash goodwill impairment charge - - -
Severance costs - - -
---------- ---------- ----------
(Loss) income before taxes (GAAP) $ (75,401) $ (61,629) $ 10,991
========== ========== ==========
Income tax (benefit) expense
reconciliation
Operating income tax (benefit) expense $ (28,101) $ (21,184) $ 4,504
Taxable equivalent adjustment (553) (571) (606)
Gain from acquisition, tax expense - - -
Severance costs, tax benefit - - -
---------- ---------- ----------
Income tax (benefit) expense (GAAP) $ (28,654) $ (21,755) $ 3,898
========== ========== ==========
(Loss) earnings per common share
reconciliation
Operating (loss) earnings per common
share $ (0.99) $ (0.84) $ 0.15
Gain from acquisition - - -
Noncash goodwill impairment charge - - -
Severance costs - - -
---------- ---------- ----------
(Loss) earnings per common share
(GAAP) $ (0.99) $ (0.84) $ 0.15
========== ========== ==========
Book value reconciliation
Tangible book value $ 10.39 $ 10.48 $ 11.03
Effect of goodwill and other
intangibles 6.56 6.64 6.72
---------- ---------- ----------
Book value (GAAP) $ 16.95 $ 17.12 $ 17.75
========== ========== ==========
Efficiency ratio reconciliation
Operating efficiency ratio 81.34% 79.35% 65.05%
Gain from acquisition - - -
Noncash goodwill impairment charge - - -
Severance costs - - -
---------- ---------- ----------
Efficiency ratio (GAAP) 81.34% 79.35% 65.05%
========== ========== ==========
Average equity to assets reconciliation
Tangible common equity to assets 6.23% 6.65% 6.77%
Effect of preferred equity .36 - -
---------- ---------- ----------
Tangible equity to assets 6.59 6.65 6.77
Effect of goodwill and other
intangibles 3.49 3.63 3.56
---------- ---------- ----------
Equity to assets (GAAP) 10.08% 10.28% 10.33%
========== ========== ==========
Actual tangible common equity to
risk-weighted assets reconciliation
Tangible common equity to risk-weighted
assets 8.34% 8.26% 8.51%
Effect of other comprehensive income (.91) (.28) (.01)
Effect of trust preferred .88 .68 .67
Effect of preferred equity 2.90 - -
---------- ---------- ----------
Tier I capital ratio (Regulatory) 11.21% 8.66% 9.17%
========== ========== ==========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
For the Six
Months Ended
(in thousands, except per share -------------------------
data; taxable equivalent) 2009 2008
----------- -----------
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 206,299 $ 246,025
Taxable equivalent adjustment (951) (1,137)
----------- -----------
Interest revenue (GAAP) $ 205,348 $ 244,888
=========== ===========
Net interest revenue reconciliation
Net interest revenue - taxable equivalent $ 118,294 $ 128,040
Taxable equivalent adjustment (951) (1,137)
----------- -----------
Net interest revenue (GAAP) $ 117,343 $ 126,903
=========== ===========
Fee revenue reconciliation
Operating fee revenue $ 25,896 $ 29,302
Gain from acquisition 11,390 -
----------- -----------
Fee revenue (GAAP) $ 37,286 $ 29,302
=========== ===========
Total revenue reconciliation
Total operating revenue $ 19,190 $ 134,342
Taxable equivalent adjustment (951) (1,137)
Gain from acquisition 11,390 -
----------- -----------
Total revenue (GAAP) $ 29,629 $ 133,205
=========== ===========
Expense reconciliation
Operating expense $ 107,917 $ 97,290
Noncash goodwill impairment charge 70,000 -
Severance costs 2,898 -
----------- -----------
Operating expense (GAAP) $ 180,815 $ 97,290
=========== ===========
(Loss) income before taxes reconciliation
Operating (loss) income before taxes $ (88,727) $ 37,052
Taxable equivalent adjustment (951) (1,137)
Gain from acquisition 11,390 -
Noncash goodwill impairment charge (70,000) -
Severance costs (2,898) -
----------- -----------
(Loss) income before taxes (GAAP) $ (151,186) $ 35,915
=========== ===========
Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense $ (33,688) $ 13,881
Taxable equivalent adjustment (951) (1,137)
Gain from acquisition, tax expense 4,328 -
Severance costs, tax benefit (1,101) -
----------- -----------
Income tax (benefit) expense (GAAP) $ (31,412) $ 12,744
=========== ===========
(Loss) earnings per common share reconciliation
Operating (loss) earnings per common share $ (1.24) $ 0.49
Gain from acquisition 0.15 -
Noncash goodwill impairment charge (1.44) -
Severance costs (0.04) -
----------- -----------
(Loss) earnings per common share (GAAP) $ (2.57) $ 0.49
=========== ===========
Book value reconciliation
Tangible book value $ 8.85 $ 11.03
Effect of goodwill and other intangibles 5.02 6.72
----------- -----------
Book value (GAAP) $ 13.87 $ 17.75
=========== ===========
Efficiency ratio reconciliation
Operating efficiency ratio 74.63% 61.97%
Gain from acquisition (9.12) -
Noncash goodwill impairment charge 48.41 -
Severance costs 2.00 -
----------- -----------
Efficiency ratio (GAAP) 115.92% 61.97%
=========== ===========
Average equity to assets reconciliation
Tangible common equity to assets 5.97% 6.75%
Effect of preferred equity 2.18 -
----------- -----------
Tangible equity to assets 8.15 6.75
Effect of goodwill and other intangibles 3.05 3.56
----------- -----------
Equity to assets (GAAP) 11.20% 10.31%
=========== ===========
Actual tangible common equity to risk-weighted
assets reconciliation
Tangible common equity to risk-weighted assets 7.48% 8.51%
Effect of other comprehensive income (.72) (.01)
Effect of trust preferred .89 .67
Effect of preferred equity 3.00 -
----------- -----------
Tier I capital ratio (Regulatory) 10.65% 9.17%
=========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2009 2008
--------------------- ---------
Second First Fourth
(in millions) Quarter (1) Quarter Quarter
----------- --------- ---------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,797 $ 1,779 $ 1,627
Commercial construction 379 377 500
Commercial & industrial 399 387 410
----------- --------- ---------
Total commercial 2,575 2,543 2,537
Residential construction 1,315 1,430 1,479
Residential mortgage 1,470 1,504 1,526
Consumer / installment 153 156 163
----------- --------- ---------
Total loans $ 5,513 $ 5,633 $ 5,705
=========== ========= =========
LOANS BY MARKET
Atlanta MSA $ 1,605 $ 1,660 $ 1,706
Gainesville MSA 413 422 420
North Georgia 1,978 2,014 2,040
Western North Carolina 794 808 810
Coastal Georgia 455 460 464
East Tennessee 268 269 265
----------- --------- ---------
Total loans $ 5,513 $ 5,633 $ 5,705
=========== ========= =========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 413 $ 445 $ 484
Land loans 159 155 153
Lot loans 369 390 358
----------- --------- ---------
Total 941 990 995
----------- --------- ---------
House loans
Spec 268 317 347
Sold 106 123 137
----------- --------- ---------
Total 374 440 484
----------- --------- ---------
Total residential construction $ 1,315 $ 1,430 $ 1,479
=========== ========= =========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development $ 124 $ 148 $ 167
Land loans 63 52 56
Lot loans 81 98 86
----------- --------- ---------
Total 268 298 309
----------- --------- ---------
House loans
Spec 127 164 189
Sold 29 33 40
----------- --------- ---------
Total 156 197 229
----------- --------- ---------
Total residential construction $ 424 $ 495 $ 538
=========== ========= =========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
Year
Linked over
Quarter Year
Change(2) Change
----------------- --------- -------
Third Second
(in millions) Quarter Quarter Actual Actual
-------- -------- --------- -------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,604 $ 1,584 4% 13%
Commercial construction 509 522 2 (27)
Commercial & industrial 425 417 12 (4)
-------- --------
Total commercial 2,538 2,523 5 2
Residential construction 1,596 1,745 (32) (25)
Residential mortgage 1,528 1,494 (9) (2)
Consumer / installment 168 171 (8) (11)
-------- --------
Total loans $ 5,830 $ 5,933 (9) (7)
======== ========
LOANS BY MARKET
Atlanta MSA $ 1,800 $ 1,934 (13)% (17)%
Gainesville MSA 426 422 (9) (2)
North Georgia 2,066 2,065 (7) (4)
Western North Carolina 815 819 (7) (3)
Coastal Georgia 458 436 (4) 4
East Tennessee 265 257 (1) 4
-------- --------
Total loans $ 5,830 $ 5,933 (9) (7)
======== ========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 516 $ 569 (29)% (27)%
Land loans 142 139 10 14
Lot loans 385 401 (22) (8)
-------- --------
Total 1,043 1,109 (20) (15)
-------- --------
House loans
Spec 393 450 (62)% (40)%
Sold 160 186 (55) (43)
-------- --------
Total 553 636 (60) (41)
-------- --------
Total residential construction $ 1,596 $ 1,745 (32) (25)
======== ========
RESIDENTIAL CONSTRUCTION - ATLANTA
MSA
Dirt loans
Acquisition & development $ 185 $ 232 (65)% (47)%
Land loans 47 50 85 26
Lot loans 103 117 (69) (31)
-------- --------
Total 335 399 (40) (33)
-------- --------
House loans
Spec 227 271 (90)% (53)%
Sold 49 58 (48) (50)
-------- --------
Total 276 329 (83) (53)
-------- --------
Total residential construction $ 611 $ 728 (57) (42)
======== ========
(1) Excludes total loans of $109.9 million as of June 30 that are 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)
Second Quarter 2009
-------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
---------- ---------- ---------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 37,755 $ 5,395 $ 43,150
Commercial construction 15,717 5,847 21,564
Commercial & industrial 11,378 - 11,378
---------- ---------- ---------
Total commercial 64,850 11,242 76,092
Residential construction 176,400 81,648 258,048
Residential mortgage 44,256 11,864 56,120
Consumer / installment 2,342 - 2,342
---------- ---------- ---------
Total NPAs $ 287,848 $ 104,754 $ 392,602
========== ========== =========
NPAs BY MARKET
Atlanta MSA $ 148,155 $ 50,450 $ 198,605
Gainesville MSA 9,745 3,511 13,256
North Georgia 72,174 37,454 109,628
Western North Carolina 21,814 7,245 29,059
Coastal Georgia 30,311 3,904 34,215
East Tennessee 5,649 2,190 7,839
---------- ---------- ---------
Total NPAs $ 287,848 $ 104,754 $ 392,602
========== ========== =========
First Quarter 2009
-------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
---------- ---------- ---------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 18,188 $ 3,811 $ 21,999
Commercial construction 6,449 2,948 9,397
Commercial & industrial 12,066 - 12,066
---------- ---------- ---------
Total commercial 36,703 6,759 43,462
Residential construction 187,656 58,327 245,983
Residential mortgage 33,148 10,297 43,445
Consumer / installment 1,648 - 1,648
---------- ---------- ---------
Total NPAs $ 259,155 $ 75,383 $ 334,538
========== ========== =========
NPAs BY MARKET
Atlanta MSA $ 131,020 $ 48,574 $ 179,594
Gainesville MSA 17,448 694 18,142
North Georgia 66,875 20,811 87,686
Western North Carolina 21,240 3,067 24,307
Coastal Georgia 15,699 1,286 16,985
East Tennessee 6,873 951 7,824
---------- ---------- ---------
Total NPAs $ 259,155 $ 75,383 $ 334,538
========== ========== =========
Fourth Quarter 2008
-------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
---------- ---------- ---------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 15,188 $ 2,427 $ 17,615
Commercial construction 1,513 2,333 3,846
Commercial & industrial 1,920 - 1,920
---------- ---------- ---------
Total commercial 18,621 4,760 23,381
Residential construction 144,836 48,572 193,408
Residential mortgage 25,574 6,436 32,010
Consumer / installment 1,692 - 1,692
---------- ---------- ---------
Total NPAs $ 190,723 $ 59,768 $ 250,491
========== ========== =========
NPAs BY MARKET
Atlanta MSA $ 105,476 $ 42,336 $ 147,812
Gainesville MSA 16,208 1,110 17,318
North Georgia 31,631 12,785 44,416
Western North Carolina 18,509 2,986 21,495
Coastal Georgia 11,863 138 12,001
East Tennessee 7,036 413 7,449
---------- ---------- ---------
Total NPAs $ 190,723 $ 59,768 $ 250,491
========== ========== =========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Second Quarter First Quarter Fourth Quarter
2009 2009 2008
----------------- ----------------- -----------------
Net Net Net
Charge- Charge- Charge-
Offs to Offs to Offs to
Net Average Net Average Net Average
Charge- Loans Charge- Loans Charge- Loans
(in thousands) Offs (2) Offs (2) Offs (2)
-------- ------- -------- ------- -------- -------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by
RE) $ 5,986 1.34% $ 826 .20% $ 4,460 1.10%
Commercial
construction 756 .80 54 .05 1,442 1.14
Commercial &
industrial 3,107 3.16 873 .89 3,416 3.24
-------- -------- --------
Total commercial 9,849 1.54 1,753 .28 9,318 1.46
Residential
construction 44,240 12.90 37,762 10.52 57,882 14.93
Residential mortgage 3,526 .95 2,984 .80 5,852 1.52
Consumer /
installment 697 1.80 782 1.99 976 2.34
-------- -------- --------
Total $ 58,312 4.18 $ 43,281 3.09 $ 74,028 5.09
======== ======== ========
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 37,473 8.89% $ 26,228 6.16% $ 49,309 10.80%
Gainesville MSA 4,125 4.38 1,105 1.18 7,994 8.60
North Georgia 12,571 2.52 8,208 1.64 9,872 1.91
Western North
Carolina 1,015 .51 3,669 1.83 2,371 1.16
Coastal Georgia 969 .85 3,229 2.84 3,150 2.70
East Tennessee 2,159 3.21 842 1.28 1,332 2.02
-------- -------- --------
Total $ 58,312 4.18 $ 43,281 3.09 $ 74,028 5.09
======== ======== ========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Second First Fourth
(in thousands) Quarter 2009 Quarter 2009 Quarter 2008
-------------- -------------- --------------
FORECLOSED PROPERTIES
Beginning balance $ 75,383 $ 59,768 $ 38,438
Foreclosures transferred in 64,417 38,742 50,678
Capital costs added 1,324 1,452 1,059
Write downs (2,738) (2,151) (2,714)
Proceeds from sales (33,632) (22,428) (27,693)
-------------- -------------- --------------
Total $ 104,754 $ 75,383 $ 59,768
============== ============== ==============
(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
June 30,
--------------------
(in thousands, except per share data) 2009 2008
--------- ----------
Interest revenue:
Loans, including fees $ 81,691 $ 97,051
Investment securities, including tax exempt of
$309 and $398 20,485 19,277
Federal funds sold, commercial paper and deposits in
banks 98 50
--------- ----------
Total interest revenue 102,274 116,378
--------- ----------
Interest expense:
Deposits:
NOW 2,843 7,216
Money market 2,269 2,310
Savings 121 180
Time 32,064 38,828
--------- ----------
Total deposit interest expense 37,297 48,534
Federal funds purchased, repurchase agreements and
other short-term borrowings 595 1,820
Federal Home Loan Bank advances 1,203 2,818
Long-term debt 2,760 2,059
--------- ----------
Total interest expense 41,855 55,231
--------- ----------
Net interest revenue 60,419 61,147
Provision for loan losses 60,000 15,500
--------- ----------
Net interest revenue after provision for loan
losses 419 45,647
--------- ----------
Fee revenue:
Service charges and fees 7,557 7,957
Mortgage loan and other related fees 2,825 2,202
Consulting fees 1,745 2,252
Brokerage fees 497 814
Securities (losses) gains, net (711) 357
Gain from acquisition 11,390 -
Other 1,137 1,523
--------- ----------
Total fee revenue 24,440 15,105
--------- ----------
Total revenue 24,859 60,752
--------- ----------
Operating expenses:
Salaries and employee benefits 28,058 28,753
Communications and equipment 3,645 3,852
Occupancy 3,853 3,704
Advertising and public relations 1,191 2,009
Postage, printing and supplies 1,294 1,448
Professional fees 2,806 1,679
Foreclosed property 5,737 2,852
FDIC assessments and other regulatory charges 6,810 1,265
Amortization of intangibles 739 745
Other 1,215 3,454
Goodwill impairment - -
Severance costs - -
--------- ----------
Total operating expenses 55,348 49,761
--------- ----------
(Loss) income before income taxes (30,489) 10,991
Income tax (benefit) expense (14,488) 3,898
--------- ----------
Net (loss) income (16,001) 7,093
Preferred stock dividends and discount accretion 2,559 4
--------- ----------
Net (loss) income available to common shareholders $ (18,560) $ 7,089
========= ==========
(Loss) earnings per common share:
Basic $ (.38) $ .15
Diluted (.38) .15
Weighted average common shares outstanding:
Basic 48,794 47,158
Diluted 48,794 47,249
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Six Months Ended
June 30,
----------------------
(in thousands, except per share data) 2009 2008
---------- -----------
Interest revenue:
Loans, including fees $ 163,571 $ 206,317
Investment securities, including tax exempt of
$628 and $792 41,237 38,299
Federal funds sold, commercial paper and deposits
in banks 540 272
---------- -----------
Total interest revenue 205,348 244,888
---------- -----------
Interest expense:
Deposits:
NOW 6,180 15,803
Money market 4,506 5,223
Savings 248 407
Time 68,117 77,712
---------- -----------
Total deposit interest expense 79,051 99,145
Federal funds purchased, repurchase agreements and
other short-term borrowings 1,148 6,138
Federal Home Loan Bank advances 2,277 8,563
Long-term debt 5,529 4,139
---------- -----------
Total interest expense 88,005 117,985
---------- -----------
Net interest revenue 117,343 126,903
Provision for loan losses 125,000 23,000
---------- -----------
Net interest revenue after provision for loan
losses (7,657) 103,903
---------- -----------
Fee revenue:
Service charges and fees 14,591 15,770
Mortgage loan and other related fees 5,476 4,165
Consulting fees 2,766 4,059
Brokerage fees 1,186 1,907
Securities (losses) gains, net (408) 357
Gain from acquisition 11,390 -
Other 2,285 3,044
---------- -----------
Total fee revenue 37,286 29,302
---------- -----------
Total revenue 29,629 133,205
---------- -----------
Operating expenses:
Salaries and employee benefits 56,897 57,507
Communications and equipment 7,374 7,684
Occupancy 7,660 7,420
Advertising and public relations 2,300 3,360
Postage, printing and supplies 2,476 3,040
Professional fees 5,099 3,600
Foreclosed property 10,056 3,763
FDIC assessments and other regulatory charges 9,492 2,531
Amortization of intangibles 1,478 1,512
Other 5,085 6,873
Goodwill impairment 70,000 -
Severance costs 2,898 -
---------- -----------
Total operating expenses 180,815 97,290
---------- -----------
(Loss) income before income taxes (151,186) 35,915
Income tax (benefit) expense (31,412) 12,744
---------- -----------
Net (loss) income (119,774) 23,171
Preferred stock dividends and discount accretion 5,113 8
Net (loss) income available to common
shareholders $ (124,887) $ 23,163
========== ===========
(Loss) earnings per common share:
Basic $ (2.57) $ .49
Diluted (2.57) .49
Weighted average common shares outstanding:
Basic 48,560 47,105
Diluted 48,560 47,260
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share and per June 30, December 31, June 30,
share data) 2009 2008 2008
------------ ----------- -----------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 110,943 $ 116,395 $ 176,240
Interest-bearing deposits in
banks 70,474 8,417 12,455
Federal funds sold, commercial
paper and short-term investments - 368,609 -
------------ ----------- -----------
Cash and cash equivalents 181,417 493,421 188,695
Securities available for sale 1,816,787 1,617,187 1,430,588
Mortgage loans held for sale 42,185 20,334 27,094
Loans, net of unearned income 5,513,087 5,704,861 5,933,141
Less allowance for loan losses 145,678 122,271 91,035
------------ ----------- -----------
Loans, net 5,367,409 5,582,590 5,842,106
Covered assets 230,125 - -
Premises and equipment, net 178,983 179,160 181,395
Accrued interest receivable 41,405 46,088 50,399
Goodwill and other intangible
assets 251,821 321,798 323,296
Other assets 292,914 260,187 220,478
------------ ----------- -----------
Total assets $ 8,403,046 $ 8,520,765 $ 8,264,051
============ =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 714,630 $ 654,036 $ 696,575
NOW 1,273,368 1,543,385 1,541,609
Money market 573,463 466,750 418,935
Savings 180,368 170,275 187,088
Time:
Less than $100,000 1,992,056 1,953,235 1,747,763
Greater than $100,000 1,351,527 1,422,974 1,573,078
Brokered 763,348 792,969 531,408
------------ ----------- -----------
Total deposits 6,848,760 7,003,624 6,696,456
Federal funds purchased,
repurchase agreements, and other
short-term borrowings 252,493 108,411 288,650
Federal Home Loan Bank advances 283,292 235,321 285,807
Long-term debt 150,026 150,986 107,996
Accrued expenses and other
liabilities 13,203 33,041 47,252
------------ ----------- -----------
Total liabilities 7,547,774 7,531,383 7,426,161
------------ ----------- -----------
Shareholders' equity:
Preferred stock, $1 par value;
10,000,000 shares authorized;
Series A; $10 stated value;
21,700, 25,800 and 25,800 shares
issued and outstanding 217 258 258
Series B; $1,000 stated value;
180,000 shares issued and
outstanding 173,785 173,180 -
Common stock, $1 par value;
100,000,000 shares authorized;
48,933,383, 48,809,301 and
48,809,301 shares issued 48,933 48,809 48,809
Common stock issuable; 182,041,
129,304 and 105,579 shares 3,383 2,908 2,696
Capital surplus 450,514 460,708 462,939
Retained earnings 136,624 265,405 362,089
Treasury stock; 799,892 and
1,713,310 shares, at cost - (16,465) (39,222)
Accumulated other comprehensive
income 41,816 54,579 321
------------ ----------- -----------
Total shareholders' equity 855,272 989,382 837,890
------------ ----------- -----------
Total liabilities and
shareholders' equity $ 8,403,046 $ 8,520,765 $ 8,264,051
============ =========== ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2009
-------------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,597,259 $ 81,567 5.85%
Taxable securities (3) 1,742,620 20,176 4.63
Tax-exempt securities (1)(3) 28,862 506 7.01
Federal funds sold and other
interest-earning assets 73,437 488 2.66
----------- ------------
Total interest-earning
assets 7,442,178 102,737 5.53
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (147,691)
Cash and due from banks 101,830
Premises and equipment 179,446
Other assets (3) 592,384
-----------
Total assets $ 8,168,147
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,258,134 $ 2,843 .91
Money market 521,989 2,269 1.74
Savings 178,435 121 .27
Time less than $100,000 1,894,071 15,342 3.25
Time greater than $100,000 1,325,757 11,513 3.48
Brokered 686,070 5,209 3.05
----------- ------------
Total interest-bearing
deposits 5,864,456 37,297 2.55
----------- ------------
Federal funds purchased and
other borrowings 220,376 595 1.08
Federal Home Loan Bank
advances 309,962 1,203 1.56
Long-term debt 151,019 2,760 7.33
----------- ------------
Total borrowed funds 681,357 4,558 2.68
----------- ------------
Total interest-bearing
liabilities 6,545,813 41,855 2.56
------------
Non-interest-bearing
liabilities:
Non-interest-bearing deposits 680,081
Other liabilities 63,043
-----------
Total liabilities 7,288,937
Shareholders' equity 879,210
-----------
Total liabilities and
shareholders' equity $ 8,168,147
===========
Net interest revenue $ 60,882
============
Net interest-rate spread 2.97%
============
Net interest margin (4) 3.28%
============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2008
--------------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ ------------------
Assets:
Interest-earning assets:
Loans, net of unearned
income (1)(2) $ 5,933,143 $ 97,080 6.58%
Taxable securities (3) 1,471,958 18,879 5.13
Tax-exempt securities (1)(3) 35,282 655 7.43
Federal funds sold and other
interest-earning assets 37,635 370 3.93
----------- ------------
Total interest-earning
assets 7,478,018 116,984 6.29
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (93,776)
Cash and due from banks 144,589
Premises and equipment 181,454
Other assets (3) 585,463
-----------
Total assets $ 8,295,748
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,505,280 $ 7,216 1.93
Money market 422,419 2,310 2.20
Savings 186,826 180 .39
Time less than $100,000 1,643,740 17,285 4.23
Time greater than $100,000 1,484,032 16,135 4.37
Brokered 534,835 5,408 4.06
----------- ------------
Total interest-bearing
deposits 5,777,132 48,534 3.38
----------- ------------
Federal funds purchased and
other borrowings 383,378 1,820 1.91
Federal Home Loan Bank
advances 412,268 2,818 2.75
Long-term debt 107,996 2,059 7.67
----------- ------------
Total borrowed funds 903,642 6,697 2.98
----------- ------------
Total interest-bearing
liabilities 6,680,774 55,231 3.33
------------
Non-interest-bearing
liabilities:
Non-interest-bearing
deposits 684,229
Other liabilities 74,018
-----------
Total liabilities 7,439,021
Shareholders' equity 856,727
-----------
Total liabilities and
shareholders' equity $ 8,295,748
===========
Net interest revenue $ 61,753
============
Net interest-rate spread 2.96%
============
Net interest margin (4) 3.32%
============
(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 $14.7 million in 2009 and $13.0 million in 2008 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 Six Months Ended June 30,
2009
-------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,635,942 $ 163,316 5.84%
Taxable securities (3) 1,712,778 40,609 4.74
Tax-exempt securities (1)(3) 29,453 1,028 6.98
Federal funds sold and other
interest-earning assets 107,788 1,346 2.50
----------- ------------
Total interest-earning assets 7,485,961 206,299 5.55
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (138,297)
Cash and due from banks 103,113
Premises and equipment 179,470
Other assets (3) 609,750
-----------
Total assets $ 8,239,997
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,307,865 $ 6,180 .95
Money market 499,780 4,506 1.82
Savings 175,587 248 .28
Time less than $100,000 1,918,349 32,559 3.42
Time greater than $100,000 1,359,286 24,338 3.61
Brokered 735,844 11,220 3.07
----------- ------------
Total interest-bearing
deposits 5,996,711 79,051 2.66
----------- ------------
Federal funds purchased and other
borrowings 185,639 1,148 1.25
Federal Home Loan Bank advances 257,742 2,277 1.78
Long-term debt 151,009 5,529 7.38
----------- ------------
Total borrowed funds 594,390 8,954 3.04
----------- ------------
Total interest-bearing
liabilities 6,591,101 88,005 2.69
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 665,170
Other liabilities 60,612
-----------
Total liabilities 7,316,883
Shareholders' equity 923,114
-----------
Total liabilities and
shareholders' equity $ 8,239,997
===========
Net interest revenue $ 118,294
============
Net interest-rate spread 2.86%
===========
Net interest margin (4) 3.18%
===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
2008
-------------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,945,720 $ 206,332 6.98%
Taxable securities (3) 1,460,090 37,507 5.14
Tax-exempt securities (1)(3) 36,287 1,303 7.18
Federal funds sold and other
interest-earning assets 42,652 883 4.14
----------- ------------
Total interest-earning assets 7,484,749 246,025 6.60
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (92,901)
Cash and due from banks 149,648
Premises and equipment 181,405
Other assets (3) 577,785
-----------
Total assets $ 8,300,686
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,483,699 $ 15,803 2.14
Money market 430,734 5,223 2.44
Savings 185,819 407 .44
Time less than $100,000 1,598,526 35,508 4.47
Time greater than $100,000 1,424,670 32,505 4.59
Brokered 454,619 9,699 4.29
----------- ------------
Total interest-bearing
deposits 5,578,067 99,145 3.57
----------- ------------
Federal funds purchased and other
borrowings 467,596 6,138 2.64
Federal Home Loan Bank advances 536,883 8,563 3.21
Long-term debt 107,995 4,139 7.71
----------- ------------
Total borrowed funds 1,112,474 18,840 3.41
----------- ------------
Total interest-bearing
liabilities 6,690,541 117,985 3.55
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 678,150
Other liabilities 75,802
-----------
Total liabilities 7,444,493
Shareholders' equity 856,193
-----------
Total liabilities and
shareholders' equity $ 8,300,686
===========
Net interest revenue $ 128,040
============
Net interest-rate spread 3.05%
===========
Net interest margin (4) 3.43%
===========
(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 $12.7 million in 2009 and $14.5 million in 2008 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=D5F8310ABEC5BFF5
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