x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
For
the Quarterly Period Ended June 30, 2009
|
|
OR
|
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF
1934
|
UNITED
COMMUNITY BANKS, INC.
|
||
(Exact
name of registrant as specified in its charter)
|
Georgia
|
58-1807304
|
|||||
(State
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
|||||
63
Highway 515
|
||||||
Blairsville,
Georgia
|
30512
|
|
||||
Address
of Principal
|
(Zip
Code)
|
|||||
Executive
Offices
|
(706)
781-2265
|
||
(Telephone
Number)
|
Large accelerated
filer o
|
Accelerated filer
x
|
|
Non-accelerated
filer o (Do not
check if a smaller reporting company)
|
Smaller Reporting
Company o
|
PART
I - Financial Information
|
|||||
Item
1.
|
Financial
Statements.
|
||||
Consolidated
Statement of Income (unaudited) for the Three and Six Months Ended June
30, 2009 and 2008
|
2
|
||||
Consolidated
Balance Sheet at June 30, 2009 (unaudited), December 31, 2008 (audited)
and June 30, 2008 (unaudited)
|
3
|
||||
Consolidated
Statement of Changes in Shareholders’ Equity (unaudited) for the Six
Months Ended June 30, 2009 and 2008
|
4
|
||||
Consolidated
Statement of Cash Flows (unaudited) for the Six Months Ended June 30, 2009
and 2008
|
5
|
||||
Notes
to Consolidated Financial Statements
|
6
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.
|
18
|
|||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk.
|
39
|
|||
Item
4.
|
Controls
and Procedures.
|
39
|
|||
PART
II - Other Information
|
|||||
Item
1.
|
Legal
Proceedings.
|
39
|
|||
Item
1A.
|
Risk
Factors.
|
40
|
|||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds.
|
40
|
|||
Item
3.
|
Defaults
Upon Senior Securities.
|
40
|
|||
Item
4.
|
Submission
of Matters to a Vote of Security Holders.
|
40
|
|||
Item
5.
|
Other
Information.
|
41
|
|||
Item
6.
|
Exhibits.
|
41
|
UNITED
COMMUNITY BANKS, INC.
|
|
Consolidated
Statement of Income
(Unaudited)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||||
(in
thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
revenue:
|
|||||||||||||||||
Loans,
including fees
|
$ | 81,691 | $ | 97,051 | $ | 163,571 | $ | 206,317 | |||||||||
Investment
securities, including tax exempt of $309, $398, $628 and
$792
|
20,485 | 19,277 | 41,237 | 38,299 | |||||||||||||
Federal
funds sold, commercial paper and deposits in banks
|
98 | 50 | 540 | 272 | |||||||||||||
Total
interest revenue
|
102,274 | 116,378 | 205,348 | 244,888 | |||||||||||||
Interest
expense:
|
|||||||||||||||||
Deposits:
|
|||||||||||||||||
NOW
|
2,843 | 7,216 | 6,180 | 15,803 | |||||||||||||
Money
market
|
2,269 | 2,310 | 4,506 | 5,223 | |||||||||||||
Savings
|
121 | 180 | 248 | 407 | |||||||||||||
Time
|
32,064 | 38,828 | 68,117 | 77,712 | |||||||||||||
Total
deposit interest expense
|
37,297 | 48,534 | 79,051 | 99,145 | |||||||||||||
Federal
funds purchased, repurchase agreements and other short-term
borrowings
|
595 | 1,820 | 1,148 | 6,138 | |||||||||||||
Federal
Home Loan Bank advances
|
1,203 | 2,818 | 2,277 | 8,563 | |||||||||||||
Long-term
debt
|
2,760 | 2,059 | 5,529 | 4,139 | |||||||||||||
Total
interest expense
|
41,855 | 55,231 | 88,005 | 117,985 | |||||||||||||
Net
interest revenue
|
60,419 | 61,147 | 117,343 | 126,903 | |||||||||||||
Provision
for loan losses
|
60,000 | 15,500 | 125,000 | 23,000 | |||||||||||||
Net
interest revenue after provision for loan losses
|
419 | 45,647 | (7,657 | ) | 103,903 | ||||||||||||
Fee
revenue:
|
|||||||||||||||||
Service
charges and fees
|
7,557 | 7,957 | 14,591 | 15,770 | |||||||||||||
Mortgage
loan and other related fees
|
2,825 | 2,202 | 5,476 | 4,165 | |||||||||||||
Consulting
fees
|
1,745 | 2,252 | 2,766 | 4,059 | |||||||||||||
Brokerage
fees
|
497 | 814 | 1,186 | 1,907 | |||||||||||||
Securities
(losses) gains, net
|
(711 | ) | 357 | (408 | ) | 357 | |||||||||||
Gain
from acquisition
|
11,390 | — | 11,390 | — | |||||||||||||
Other
|
1,137 | 1,523 | 2,285 | 3,044 | |||||||||||||
Total
fee revenue
|
24,440 | 15,105 | 37,286 | 29,302 | |||||||||||||
Total
revenue
|
24,859 | 60,752 | 29,629 | 133,205 | |||||||||||||
Operating
expenses:
|
|||||||||||||||||
Salaries
and employee benefits
|
28,058 | 28,753 | 56,897 | 57,507 | |||||||||||||
Communications
and equipment
|
3,645 | 3,852 | 7,374 | 7,684 | |||||||||||||
Occupancy
|
3,853 | 3,704 | 7,660 | 7,420 | |||||||||||||
Advertising
and public relations
|
1,191 | 2,009 | 2,300 | 3,360 | |||||||||||||
Postage,
printing and supplies
|
1,294 | 1,448 | 2,476 | 3,040 | |||||||||||||
Professional
fees
|
2,806 | 1,679 | 5,099 | 3,600 | |||||||||||||
Foreclosed
property
|
5,737 | 2,852 | 10,056 | 3,763 | |||||||||||||
FDIC
assessments and other regulatory charges
|
6,810 | 1,265 | 9,492 | 2,531 | |||||||||||||
Amortization
of intangibles
|
739 | 745 | 1,478 | 1,512 | |||||||||||||
Other
|
1,215 | 3,454 | 5,085 | 6,873 | |||||||||||||
Goodwill
impairment
|
— | — | 70,000 | — | |||||||||||||
Severance
costs
|
— | — | 2,898 | — | |||||||||||||
Total
operating expenses
|
55,348 | 49,761 | 180,815 | 97,290 | |||||||||||||
(Loss)
income before income taxes
|
(30,489 | ) | 10,991 | (151,186 | ) | 35,915 | |||||||||||
Income
tax (benefit) expense
|
(14,488 | ) | 3,898 | (31,412 | ) | 12,744 | |||||||||||
Net
(loss) income
|
(16,001 | ) | 7,093 | (119,774 | ) | 23,171 | |||||||||||
Preferred
stock dividends, including discount accretion
|
2,559 | 4 | 5,113 | 8 | |||||||||||||
Net
(loss) income available to common shareholders
|
$ | (18,560 | ) | $ | 7,089 | $ | (124,887 | ) | $ | 23,163 | |||||||
Basic
(loss) earnings per common share
|
$ | (.38 | ) | $ | .15 | $ | (2.57 | ) | $ | .49 | |||||||
Diluted
(loss) earnings per common share
|
(.38 | ) | .15 | (2.57 | ) | .49 | |||||||||||
Cash
dividends per common share
|
— | .09 | — | .18 | |||||||||||||
Stock
dividends per common share (new shares issued per shares
held)
|
1
for 130
|
— |
2
for 130
|
— | |||||||||||||
Weighted
average common shares outstanding - Basic
|
48,794 | 47,158 | 48,560 | 47,105 | |||||||||||||
Weighted
average common shares outstanding - Diluted
|
48,794 | 47,249 | 48,560 | 47,260 |
(in
thousands, except share and per share data)
|
June
30,
2009
|
December
31,
2008
|
June
30,
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.
|
Consolidated
Statement of Changes in Shareholders’ Equity (Unaudited)
|
For
the Six Months Ended June 30,
2009
|
(in
thousands, except share
and per share data) |
Series
A
Preferred
Stock
|
Series
B
Preferred
Stock
|
Common
Stock
|
Common
Stock
Issuable
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Total
|
|||||||||||||||||||||||||||
Balance,
December 31, 2007
|
$ | 258 | $ | — | $ | 48,809 | $ | 2,100 | $ | 462,881 | $ | 347,391 | $ | (43,798 | ) | $ | 14,261 | $ | 831,902 | |||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Net
income
|
23,171 | 23,171 | ||||||||||||||||||||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Unrealized
holding losses on available for sale securities, net of deferred tax
benefit and reclassification adjustment
|
(15,203 | ) | (15,203 | ) | ||||||||||||||||||||||||||||||||
Unrealized
gains on derivative financial instruments qualifying as cash flow hedges,
net of deferred tax expense
|
1,263 | 1,263 | ||||||||||||||||||||||||||||||||||
Comprehensive
income
|
23,171 | (13,940 | ) | 9,231 | ||||||||||||||||||||||||||||||||
Cash
dividends declared on common stock ($.18 per share)
|
(8,465 | ) | (8,465 | ) | ||||||||||||||||||||||||||||||||
Exercise
of stock options (62,860 shares)
|
(717 | ) | 1,529 | 812 | ||||||||||||||||||||||||||||||||
Common
stock issued to dividend reinvestment plan and employee benefit plans
(113,047 shares)
|
(1,024 | ) | 2,648 | 1,624 | ||||||||||||||||||||||||||||||||
Amortization
of stock option and restricted stock awards
|
1,944 | 1,944 | ||||||||||||||||||||||||||||||||||
Vesting
of restricted stock (15,159 shares issued, 8,700 shares
deferred)
|
264 | (626 | ) | 362 | — | |||||||||||||||||||||||||||||||
Deferred
compensation plan, net, including dividend equivalents
|
374 | 374 | ||||||||||||||||||||||||||||||||||
Shares
issued from deferred compensation plan (1,545 shares)
|
(42 | ) | 5 | 37 | — | |||||||||||||||||||||||||||||||
Tax
benefit from options exercised
|
476 | 476 | ||||||||||||||||||||||||||||||||||
Dividends
on Series A preferred stock ($.30 per share)
|
(8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Balance,
June 30, 2008
|
$ | 258 | $ | — | $ | 48,809 | $ | 2,696 | $ | 462,939 | $ | 362,089 | $ | (39,222 | ) | $ | 321 | $ | 837,890 | |||||||||||||||||
Balance,
December 31, 2008
|
$ | 258 | $ | 173,180 | $ | 48,809 | $ | 2,908 | $ | 460,708 | $ | 265,405 | $ | (16,465 | ) | $ | 54,579 | $ | 989,382 | |||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Net
loss
|
(119,774 | ) | (119,774 | ) | ||||||||||||||||||||||||||||||||
Other
comprehensive loss:
|
||||||||||||||||||||||||||||||||||||
Unrealized
holding gains on available for sale securities, net of deferred tax
expense and reclassification adjustment
|
1,582 | 1,582 | ||||||||||||||||||||||||||||||||||
Unrealized
losses on derivative financial instruments qualifying as cash flow hedges,
net of deferred tax benefit
|
(14,345 | ) | (14,345 | ) | ||||||||||||||||||||||||||||||||
Comprehensive
loss
|
(119,774 | ) | (12,763 | ) | (132,537 | ) | ||||||||||||||||||||||||||||||
Retirement
of Series A preferred stock (4,100 shares)
|
(41 | ) | (41 | ) | ||||||||||||||||||||||||||||||||
Stock
dividends declared on common stock (737,530 shares)
|
108 | (8,893 | ) | (3,894 | ) | 12,649 | (30 | ) | ||||||||||||||||||||||||||||
Exercise
of stock options (437 shares)
|
(6 | ) | 8 | 2 | ||||||||||||||||||||||||||||||||
Common
stock issued to dividend reinvestment plan and employee benefit plans
(167,873 shares)
|
14 | (2,474 | ) | 3,434 | 974 | |||||||||||||||||||||||||||||||
Amortization
of stock options and restricted stock awards
|
1,846 | 1,846 | ||||||||||||||||||||||||||||||||||
Vesting
of restricted stock (12,447 shares issued, 16,162 shares
deferred)
|
2 | 416 | (658 | ) | 240 | — | ||||||||||||||||||||||||||||||
Deferred
compensation plan, net, including dividend equivalents
|
214 | 214 | ||||||||||||||||||||||||||||||||||
Shares
issued from deferred compensation plan (5,687 shares)
|
(155 | ) | 21 | 134 | — | |||||||||||||||||||||||||||||||
Tax
on option exercise and restricted stock vesting
|
(30 | ) | (30 | ) | ||||||||||||||||||||||||||||||||
Dividends
on Series A preferred stock ($.30 per share)
|
(8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Dividends
on Series B preferred stock (5%)
|
605 | (5,105 | ) | (4,500 | ) | |||||||||||||||||||||||||||||||
Balance,
June 30, 2009
|
$ | 217 | $ | 173,785 | $ | 48,933 | $ | 3,383 | $ | 450,514 | $ | 136,624 | $ | — | $ | 41,816 | $ | 855,272 |
UNITED
COMMUNITY BANKS, INC.
|
Consolidated
Statement of Cash Flows (Unaudited)
|
Six
Months Ended
June
30,
|
||||||||
(in
thousands)
|
2009
|
2008
|
||||||
Operating
activities:
|
||||||||
Net
(loss) income
|
$ | (119,774 | ) | $ | 23,171 | |||
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities:
|
||||||||
Depreciation,
amortization and accretion
|
7,215 | 7,211 | ||||||
Provision
for loan losses
|
125,000 | 23,000 | ||||||
Goodwill
impairment charge
|
70,000 | — | ||||||
Stock-based
compensation
|
1,846 | 1,944 | ||||||
Loss
(gain) on sale of securities available for sale
|
408 | (357 | ) | |||||
(Gain)
loss on sale of other assets and other real estate owned
|
(601 | ) | 578 | |||||
Write
downs of other real estate owned
|
(4,889 | ) | (11 | ) | ||||
Gain
from acquisition
|
(11,390 | ) | — | |||||
Changes
in assets and liabilities:
|
||||||||
Other
assets and accrued interest receivable
|
(10,943 | ) | (14,651 | ) | ||||
Accrued
expenses and other liabilities
|
50,868 | 25,309 | ||||||
Mortgage
loans held for sale
|
(21,851 | ) | 910 | |||||
Net
cash provided by operating activities
|
85,889 | 67,104 | ||||||
Investing
activities:
|
||||||||
Proceeds
from sales of securities available for sale
|
15,017 | 79,735 | ||||||
Proceeds
from maturities and calls of securities available for sale
|
399,401 | 344,597 | ||||||
Purchases
of securities available for sale
|
(584,100 | ) | (511,626 | ) | ||||
Net
increase in loans
|
(12,617 | ) | (65,062 | ) | ||||
Proceeds
from sales of premises and equipment
|
547 | 323 | ||||||
Purchases
of premises and equipment
|
(6,237 | ) | (7,291 | ) | ||||
Net
cash received from acquisitions
|
63,618 | — | ||||||
Proceeds
from sale of other real estate
|
56,060 | 30,636 | ||||||
Net
cash used by investing activities
|
(68,311 | ) | (128,688 | ) | ||||
Financing
activities:
|
||||||||
Net
change in deposits
|
(462,921 | ) | 620,505 | |||||
Net
change in federal funds purchased, repurchase agreements, and other
short-term borrowings
|
141,412 | (349,812 | ) | |||||
Proceeds
from FHLB advances
|
130,000 | 400,000 | ||||||
Repayments
of FHLB advances
|
(135,000 | ) | (634,000 | ) | ||||
Proceeds
from exercise of stock options
|
2 | 812 | ||||||
Proceeds
from issuance of common stock for dividend reinvestment and employee
benefit plans
|
974 | 1,624 | ||||||
Retirement
of preferred stock
|
(41 | ) | — | |||||
Cash
dividends on common stock
|
— | (8,465 | ) | |||||
Cash
dividends on preferred stock
|
(4,008 | ) | (8 | ) | ||||
Net
cash (used) provided by financing activities
|
(329,582 | ) | 30,656 | |||||
Net
change in cash and cash equivalents
|
(312,004 | ) | (30,928 | ) | ||||
Cash
and cash equivalents at beginning of period
|
493,421 | 219,623 | ||||||
Cash
and cash equivalents at end of period
|
$ | 181,417 | $ | 188,695 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash
paid (received) during the period for:
|
||||||||
Interest
|
$ | 91,865 | $ | 120,314 | ||||
Income
taxes
|
(23,850 | ) | 20,098 |
(in
thousands)
|
Southern
Community
Bank
|
|||
Assets
acquired:
|
||||
Cash
and due from banks
|
$
|
63,618
|
||
Securities
available for sale
|
80,148
|
|||
Loans
|
110,023
|
|||
Foreclosed
property
|
25,913
|
|||
Estimated
loss reimbursement from the FDIC
|
94,550
|
|||
Covered
assets
|
230,486
|
|||
Core
deposit intangible
|
1,500
|
|||
Accrued
interest receivable and other assets
|
2,434
|
|||
Total
assets acquired
|
378,186
|
|||
Liabilities
assumed:
|
||||
Deposits
|
309,437
|
|||
Federal
Home Loan Bank advances
|
53,416
|
|||
Accrued
interest payable and other liabilities
|
3,943
|
|||
Total
liabilities assumed
|
366,796
|
|||
Net
assets acquired / gain from acquisition
|
$
|
11,390
|
(in
thousands)
|
SOP
03-3
Loans
|
Non
SOP 03-3
Loans
|
Other
|
Total
|
||||||||||||
Covered
loans
|
$ | 23,513 | $ | 86,339 | $ | — | $ | 109,852 | ||||||||
Covered
foreclosed property
|
— | — | 25,723 | 25,723 | ||||||||||||
Estimated
loss reimbursement from the FDIC
|
— | — | 94,550 | 94,550 | ||||||||||||
Total
covered assets
|
$ | 23,513 | $ | 86,339 | $ | 120,273 | $ | 230,125 |
Options
|
Shares
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinisic
Value
($000)
|
||||||||||||
Outstanding
at December 31, 2008
|
3,350,701 | $ | 19.99 | |||||||||||||
Stock
dividend adjustment
|
51,266 | — | ||||||||||||||
Granted
|
352,950 | 6.35 | ||||||||||||||
Exercised
|
(437 | ) | 5.96 | |||||||||||||
Forfeited
|
(43,069 | ) | 22.35 | |||||||||||||
Expired
|
(27,198 | ) | 13.24 | |||||||||||||
Outstanding
at June 30, 2009
|
3,684,213 | 18.43 | 6.1 | $ | — | |||||||||||
Exercisable
at June 30, 2009
|
2,464,201 | 19.26 | 4.8 | — | ||||||||||||
Six
Months Ended
June
30,
|
||||||||
2009
|
2008
|
|||||||
Expected
volatility
|
40.68 | % | 23.42 | % | ||||
Expected
dividend yield
|
0.00 | % | 2.61 | % | ||||
Expected
life (in years)
|
6.25 | 6.25 | ||||||
Risk-free
rate
|
3.35 | % | 3.43 | % |
Restricted
Stock
|
Shares
|
Weighted-
Average
Grant-
Date
Fair Value
|
||||||
Outstanding
at December 31, 2008
|
89,498 | $ | 24.17 | |||||
Stock
dividend adjustment
|
1,876 | — | ||||||
Granted
|
106,000 | 7.07 | ||||||
Vested
|
(28,609 | ) | 25.08 | |||||
Outstanding
at June 30, 2009
|
168,765 | 13.01 |
As
of June 30, 2009
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
U.S.
Treasuries
|
$ | 39,979 | $ | — | $ | 4 | $ | 39,975 | ||||||||
U.S.
Government agencies
|
209,662 | 1,015 | 3,364 | 207,313 | ||||||||||||
State
and political subdivisions
|
55,194 | 619 | 310 | 55,503 | ||||||||||||
Mortgage-backed
securities
|
1,462,695 | 32,318 | 9,916 | 1,485,097 | ||||||||||||
Other
|
28,645 | 311 | 57 | 28,899 | ||||||||||||
Total
|
$ | 1,796,175 | $ | 34,263 | $ | 13,651 | $ | 1,816,787 | ||||||||
As
of December 31, 2008
|
||||||||||||||||
U.S.
Government agencies
|
$ | 166,263 | $ | 2,122 | $ | — | $ | 168,385 | ||||||||
State
and political subdivisions
|
43,649 | 469 | 378 | 43,740 | ||||||||||||
Mortgage-backed
securities
|
1,363,513 | 26,356 |