UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 26, 2012
United Community Banks, Inc.
(Exact name of registrant as specified in its charter)|
Georgia
|
No. 001-35095
|
No. 58-180-7304
|
|
(State or other jurisdiction of
|
(Commission File Number)
|
(IRS Employer
|
|
incorporation)
|
Identification No.)
|
125 Highway 515 East, P.O. Box 398
Blairsville, Georgia 30512(Address of principal executive offices)
Registrant’s telephone number, including area code:
(706) 781-2265
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
q
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
q
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
q
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
q
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|
On April 26, 2012, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended March 31, 2012 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. In connection with issuing the News Release, on April 26, 2012 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the March 31, 2012 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference.
The presentation of the Registrant’s financial results includes operating performance measures and core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP operating performance and core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses operating performance and core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Core earnings measures exclude credit related costs such as the provision for loan losses, certain expenses and charges related to the Registrant’s 2011 asset disposition plans in the first quarter of 2011 and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods.
Operating performance and core earnings measures should be viewed in addition to, and not as an alternative or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.
|
|
Item 9.01
|
Financial Statements and Exhibits
|
|
(a) Financial statements: None
(b) Pro forma financial information: None
(c) Exhibits:
|
|
|
99.1 Press Release, dated April 26, 2012
99.2 Investor Presentation, First Quarter 2012
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UNITED COMMUNITY BANKS, INC. | |||
|
|
By:
|
/s/ Rex S. Schuette | |
| Rex S. Schuette | |||
| Executive Vice President and | |||
| Chief Financial Officer | |||
| Date: April 26, 2012 | |||
Exhibit 99.1
For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
EARNINGS OF $11.5 MILLION FOR FIRST QUARTER 2012
|
●
|
Net income of $11.5 million, or 15 cents per share
|
|
●
|
Pre-tax, pre-credit earnings, excluding one-time items, highest since fourth quarter 2009
|
|
●
|
Loan growth continues, up $18 million from fourth quarter, or 2 percent annualized
|
|
●
|
Core transaction deposits up $151 million from fourth quarter, or 21 percent annualized
|
|
●
|
Capital ratios strengthen
|
BLAIRSVILLE, GA – April 26, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $11.5 million, or 15 cents per share, for the first quarter of 2012. The positive results reflect strong core transaction deposit growth, modest loan growth, a fee revenue increase and lower operating expenses compared with the fourth quarter of 2011.
“Momentum continues to build in restoring and improving our financial performance,” said Jimmy Tallent, president and chief executive officer. “With credit problems now at a manageable level, we have increased our focus on improving core pre-tax, pre-credit earnings through revenue growth and higher efficiency. The results are encouraging: Core pre-tax, pre-credit earnings, excluding one-time items, were at their highest level since the fourth quarter of 2009.”
Total loans were $4.13 billion at quarter-end, up $18 million from the fourth quarter and down $66 million from a year earlier. “In the fourth quarter we reversed the trend of declining loan balances, and in the first quarter we achieved modest loan growth,” stated Tallent. “We are prudently growing our portfolio by focusing on full-service relationships with small-to-medium sized businesses. During the first quarter we added $169 million in new loan commitments of which $131 million were funded by quarter-end. The majority were commercial loans.”
The first quarter provision for loan losses was $15 million, down from $190 million a year ago and up slightly from $14 million in the fourth quarter of 2011. The first quarter 2011 provision was elevated due to execution of United’s problem asset disposition plan following the successful raising of $380 million in capital.
First quarter net charge-offs were $15.9 million, compared to $232 million in the first quarter of 2011 and $45.6 million in the fourth quarter. A bulk loan sale, part of the problem asset disposition plan, elevated net charge-offs in the 2011 first quarter. Fourth quarter 2011 net charge-offs included $25 million related to United’s largest loan relationship.
Nonperforming assets of $161.6 million reflected a $1.3 million increase from the fourth quarter of 2011, and a $23.4 million increase from the first quarter of 2011. Said Tallent, “Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. While the inflow of new nonperforming loans fell from $46 million in the fourth quarter to $32 million in the first quarter, nonperforming assets did not decline due to slow foreclosed property sales, which is typical in the winter months. We expect our overall credit trends to improve during 2012, although not necessarily on a straight line.”
Taxable equivalent net interest revenue of $58.9 million reflected a slight decline from the fourth quarter of 2011, and an increase of $2.5 million from the first quarter of 2011 due to the $2 million reversal of accrued interest last year on performing loans included in the bulk loan sale. The net interest margin was 3.53 percent for the first quarter of 2012, up 23 basis points from a year ago and two basis points from the fourth quarter of 2011.
“Growing quality loan and deposit relationships is a key focus in 2012,” Tallent commented. “The weak economy has created a highly competitive environment for good, quality loans; yet, our momentum continues to build as the seasoned relationship managers we have added in key markets attract new business. Our success attracting core transaction deposits also has continued, with balances increasing $151 million during the first quarter. That is 21 percent growth on an annualized basis.”
Fee revenue was $15.4 million in the first quarter of 2012, compared to $12.7 million in the fourth quarter and $11.8 million a year ago. Service charges and fees were $7.8 million, up $535,000 from the fourth quarter and $1.1 million from a year ago. The increase in service charges and fees from both periods reflects new charges on deposit accounts that became effective in the first quarter of 2012, and higher debit card revenue. Combined, these revenue increases more than offset lower overdraft fees.
Mortgage fee revenue increased $274,000 from the fourth quarter, and $605,000 from a year ago, to $2.1 million. The comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities. Mortgage loans closed totaled $81.7 million in the first quarter of 2012 compared with $78.8 million and $74.5 million, respectively, in the fourth and first quarters of 2011. Other fee revenue of $4.6 million reflected a $1.8 million increase from the fourth quarter, and a $1.7 million increase from the first quarter of 2011. The increase from both prior periods was primarily due to the recognition of $1.1 million in interest received for 2008’s federal tax refund.
Excluding foreclosed property costs, first quarter 2012 operating expenses were $43.1 million compared to $41.8 million for the fourth quarter of 2011. Operating expenses increased $1.3 million on a linked-quarter basis due to a reclassification of expenses reflected in the fourth quarter of 2011 that transferred $2.2 million of salary and employee benefit costs to other comprehensive income for unamortized prior service costs and actuarial losses related to United’s modified retirement plan. Excluding this one-time adjustment, the first quarter’s total operating expenses were down $900,000 from the fourth quarter, primarily due to lower staff costs. First quarter operating expenses decreased by $7.2 million in the first quarter compared to the same period a year ago, primarily due to $2.9 million in higher FDIC premium assessments in the first quarter of 2011, and costs incurred during that period related to the problem asset disposition plan: $1.0 million in professional fees and $2.6 million in property taxes paid on assets sold.
Foreclosed property costs for the first quarter of 2012 were $3.8 million, compared to $9.3 million in the fourth quarter of 2011 and $64.9 million in the first quarter a year ago. First quarter 2012 costs included $1.6 million for maintenance and $2.2 million in net losses and write-downs. For the fourth quarter of 2011, foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs. First quarter 2011 costs included $4.3 million in maintenance and $60.6 million in net write-downs and losses, mostly related to the problem asset disposition plan.
As of March 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Tier 1 Leverage of 8.9 percent; and Total Risk-Based of 15.4 percent. The Tier 1 Common Risk-Based ratio was 8.3 and the Tangible Equity-to-Assets ratio was 8.1 percent.
“We are on the path to recovery as indicated by three profitable quarters out of the past four,” stated Tallent. “The economy is still weak and work remains to resolve credit problems, though we believe far more of that work is behind us. Looking forward, we expect continued profitability and improved financial performance from revenue enhancements and expense reductions.”
Conference Call
United will hold a conference call today, Thursday, April 26, 2012, 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 conference number 69716155. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of the United’s website at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.2 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United’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 United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2011 Annual Report on Form 10-K under the section entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
# # #
|
UNITED COMMUNITY BANKS, INC.
|
|
Financial Highlights
|
|
Selected Financial Information
|
|
|
First
|
|||||||||||||||||||||||
|
2012
|
2011
|
Quarter
|
||||||||||||||||||||||
|
(in thousands, except per share
|
First
|
Fourth
|
Third
|
Second
|
First
|
2012-2011 | ||||||||||||||||||
|
data; taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Change
|
||||||||||||||||||
|
INCOME SUMMARY
|
||||||||||||||||||||||||
|
Interest revenue
|
$ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 75,965 | ||||||||||||||
|
Interest expense
|
11,357 | 12,855 | 15,262 | 17,985 | 19,573 | |||||||||||||||||||
|
Net interest revenue
|
58,864 | 59,050 | 59,281 | 58,946 | 56,392 | 4 | % | |||||||||||||||||
|
Provision for loan losses
|
15,000 | 14,000 | 36,000 | 11,000 | 190,000 | |||||||||||||||||||
|
Fee revenue
|
15,379 | 12,667 | 11,498 | 13,905 | 11,838 | 30 | ||||||||||||||||||
|
Total revenue
|
59,243 | 57,717 | 34,779 | 61,851 | (121,770 | ) | ||||||||||||||||||
|
Operating expenses
|
46,955 | 51,080 | 46,520 | 48,728 | 115,271 | (59 | ) | |||||||||||||||||
|
Income (loss) before income taxes
|
12,288 | 6,637 | (11,741 | ) | 13,123 | (237,041 | ) | |||||||||||||||||
|
Income tax expense (benefit)
|
760 | (3,264 | ) | (402 | ) | 1,095 | 295 | |||||||||||||||||
|
Net income (loss)
|
11,528 | 9,901 | (11,339 | ) | 12,028 | (237,336 | ) | |||||||||||||||||
|
Preferred dividends and discount accretion
|
3,030 | 3,025 | 3,019 | 3,016 | 2,778 | |||||||||||||||||||
|
Net income (loss) available to common shareholders
|
$ | 8,498 | $ | 6,876 | $ | (14,358 | ) | $ | 9,012 | $ | (240,114 | ) | ||||||||||||
|
PERFORMANCE MEASURES
|
||||||||||||||||||||||||
|
Per common share:
|
||||||||||||||||||||||||
|
Diluted income (loss)
|
$ | .15 | $ | .12 | $ | (.25 | ) | $ | .16 | $ | (13.00 | ) | ||||||||||||
|
Book value
|
6.68 | 6.62 | 6.77 | 7.11 | 2.20 | 204 | ||||||||||||||||||
|
Tangible book value (2)
|
6.54 | 6.47 | 6.61 | 6.94 | 1.69 | 287 | ||||||||||||||||||
|
Key performance ratios:
|
||||||||||||||||||||||||
|
Return on equity (1)(3)
|
8.78 | % | 7.40 | % | (15.06 | ) % | 42.60 | % | (526.54 | ) % | ||||||||||||||
|
Return on assets (3)
|
.66 | .56 | (.64 | ) | .66 | (13.04 | ) | |||||||||||||||||
|
Net interest margin (3)
|
3.53 | 3.51 | 3.55 | 3.41 | 3.30 | |||||||||||||||||||
|
Efficiency ratio
|
63.31 | 71.23 | 65.73 | 66.88 | 169.08 | |||||||||||||||||||
|
Equity to assets
|
8.19 | 8.28 | 8.55 | 8.06 | 6.15 | |||||||||||||||||||
|
Tangible equity to assets (2)
|
8.08 | 8.16 | 8.42 | 7.93 | 6.01 | |||||||||||||||||||
|
Tangible common equity to assets (2)
|
5.33 | 5.38 | 5.65 | 1.37 | 2.70 | |||||||||||||||||||
|
Tangible common equity to risk-weighted assets (2)
|
8.21 | 8.25 | 8.52 | 8.69 | .75 | |||||||||||||||||||
|
ASSET QUALITY *
|
||||||||||||||||||||||||
|
Non-performing loans
|
$ | 129,704 | $ | 127,479 | $ | 144,484 | $ | 71,065 | $ | 83,769 | ||||||||||||||
|
Foreclosed properties
|
31,887 | 32,859 | 44,263 | 47,584 | 54,378 | |||||||||||||||||||
|
Total non-performing assets (NPAs)
|
161,591 | 160,338 | 188,747 | 118,649 | 138,147 | |||||||||||||||||||
|
Allowance for loan losses
|
113,601 | 114,468 | 146,092 | 127,638 | 133,121 | |||||||||||||||||||
|
Net charge-offs
|
15,867 | 45,624 | 17,546 | 16,483 | 231,574 | |||||||||||||||||||
|
Allowance for loan losses to loans
|
2.75 | % | 2.79 | % | 3.55 | % | 3.07 | % | 3.17 |
%
|
|
|||||||||||||
|
Net charge-offs to average loans (3)
|
1.55 | 4.39 | 1.68 | 1.58 | 20.71 | |||||||||||||||||||
|
NPAs to loans and foreclosed properties
|
3.88 | 3.87 | 4.54 | 2.82 | 3.25 | |||||||||||||||||||
|
NPAs to total assets
|
2.25 | 2.30 | 2.74 | 1.66 | 1.79 | |||||||||||||||||||
|
|
||||||||||||||||||||||||
|
AVERAGE BALANCES ($ in millions)
|
||||||||||||||||||||||||
|
Loans
|
$ | 4,168 | $ | 4,175 | $ | 4,194 | $ | 4,266 | $ | 4,599 | (9 | ) | ||||||||||||
|
Investment securities
|
2,153 | 2,141 | 2,150 | 2,074 | 1,625 | 32 | ||||||||||||||||||
|
Earning assets
|
6,700 | 6,688 | 6,630 | 6,924 | 6,902 | (3 | ) | |||||||||||||||||
|
Total assets
|
7,045 | 7,019 | 7,000 | 7,363 | 7,379 | (5 | ) | |||||||||||||||||
|
Deposits
|
6,028 | 6,115 | 6,061 | 6,372 | 6,560 | (8 | ) | |||||||||||||||||
|
Shareholders’ equity
|
577 | 581 | 598 | 594 | 454 | 27 | ||||||||||||||||||
|
Common shares - basic (thousands)
|
57,764 | 57,646 | 57,599 | 25,427 | 18,466 | |||||||||||||||||||
|
Common shares - diluted (thousands)
|
57,764 | 57,646 | 57,599 | 57,543 | 18,466 | |||||||||||||||||||
|
AT PERIOD END ($ in millions)
|
||||||||||||||||||||||||
|
Loans *
|
$ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | (2 | ) | ||||||||||||
|
Investment securities
|
2,202 | 2,120 | 2,123 | 2,188 | 1,884 | 17 | ||||||||||||||||||
|
Total assets
|
7,174 | 6,983 | 6,894 | 7,152 | 7,709 | (7 | ) | |||||||||||||||||
|
Deposits
|
6,001 | 6,098 | 6,005 | 6,183 | 6,598 | (9 | ) | |||||||||||||||||
|
Shareholders’ equity
|
580 | 575 | 583 | 603 | 586 | (1 | ) | |||||||||||||||||
|
Common shares outstanding (thousands)
|
57,603 | 57,561 | 57,510 | 57,469 | 20,903 | |||||||||||||||||||
|
(1) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized.
|
|
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
|
|
UNITED COMMUNITY BANKS, INC.
|
|
Non-GAAP Performance Measures Reconciliation
|
|
Selected Financial Information
|
|
2012
|
2011 | |||||||||||||||||||
|
(in thousands, except per share
|
First
|
Fourth
|
Third
|
Second
|
First
|
|||||||||||||||
|
data; taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||||
|
Interest revenue reconciliation
|
||||||||||||||||||||
|
Interest revenue - taxable equivalent
|
$ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 75,965 | ||||||||||
|
Taxable equivalent adjustment
|
(446 | ) | (423 | ) | (420 | ) | (429 | ) | (435 | ) | ||||||||||
|
Interest revenue (GAAP)
|
$ | 69,775 | $ | 71,482 | $ | 74,123 | $ | 76,502 | $ | 75,530 | ||||||||||
|
Net interest revenue reconciliation
|
||||||||||||||||||||
|
Net interest revenue - taxable equivalent
|
$ | 58,864 | $ | 59,050 | $ | 59,281 | $ | 58,946 | $ | 56,392 | ||||||||||
|
Taxable equivalent adjustment
|
(446 | ) | (423 | ) | (420 | ) | (429 | ) | (435 | ) | ||||||||||
|
Net interest revenue (GAAP)
|
$ | 58,418 | $ | 58,627 | $ | 58,861 | $ | 58,517 | $ | 55,957 | ||||||||||
|
Total revenue reconciliation
|
||||||||||||||||||||
|
Total operating revenue
|
$ | 59,243 | $ | 57,717 | $ | 34,779 | $ | 61,851 | $ | (121,770 | ) | |||||||||
|
Taxable equivalent adjustment
|
(446 | ) | (423 | ) | (420 | ) | (429 | ) | (435 | ) | ||||||||||
|
Total revenue (GAAP)
|
$ | 58,797 | $ | 57,294 | $ | 34,359 | $ | 61,422 | $ | (122,205 | ) | |||||||||
|
Income (loss) before taxes reconciliation
|
||||||||||||||||||||
|
Income (loss) before taxes
|
$ | 12,288 | $ | 6,637 | $ | (11,741 | ) | $ | 13,123 | $ | (237,041 | ) | ||||||||
|
Taxable equivalent adjustment
|
(446 | ) | (423 | ) | (420 | ) | (429 | ) | (435 | ) | ||||||||||
|
Income (loss) before taxes (GAAP)
|
$ | 11,842 | $ | 6,214 | $ | (12,161 | ) | $ | 12,694 | $ | (237,476 | ) | ||||||||
|
Income tax (benefit) expense reconciliation
|
||||||||||||||||||||
|
Income tax (benefit) expense
|
$ | 760 | $ | (3,264 | ) | $ | (402 | ) | $ | 1,095 | $ | 295 | ||||||||
|
Taxable equivalent adjustment
|
(446 | ) | (423 | ) | (420 | ) | (429 | ) | (435 | ) | ||||||||||
|
Income tax (benefit) expense (GAAP)
|
$ | 314 | $ | (3,687 | ) | $ | (822 | ) | $ | 666 | $ | (140 | ) | |||||||
|
Book value per common share reconciliation
|
||||||||||||||||||||
|
Tangible book value per common share
|
$ | 6.54 | $ | 6.47 | $ | 6.61 | $ | 6.94 | $ | 1.69 | ||||||||||
|
Effect of goodwill and other intangibles
|
.14 | .15 | .16 | .17 | .51 | |||||||||||||||
|
Book value per common share (GAAP)
|
$ | 6.68 | $ | 6.62 | $ | 6.77 | $ | 7.11 | $ | 2.20 | ||||||||||
|
Average equity to assets reconciliation
|
||||||||||||||||||||
|
Tangible common equity to assets
|
5.33 | % | 5.38 | % | 5.65 | % | 1.37 | % | 2.70 | % | ||||||||||
|
Effect of preferred equity
|
2.75 | 2.78 | 2.77 | 6.56 | 3.31 | |||||||||||||||
|
Tangible equity to assets
|
8.08 | 8.16 | 8.42 | 7.93 | 6.01 | |||||||||||||||
|
Effect of goodwill and other intangibles
|
.11 | .12 | .13 | .13 | .14 | |||||||||||||||
|
Equity to assets (GAAP)
|
8.19 | % | 8.28 | % | 8.55 | % | 8.06 | % | 6.15 | % | ||||||||||
|
Tangible common equity to risk-weighted assets reconciliation
|
||||||||||||||||||||
|
Tangible common equity to risk-weighted assets
|
8.21 | % | 8.25 | % | 8.52 | % | 8.69 | % | .75 | % | ||||||||||
|
Effect of other comprehensive income
|
.10 | (.03 | ) | (.29 | ) | (.42 | ) | (.32 | ) | |||||||||||
|
Effect of trust preferred
|
1.15 | 1.18 | 1.19 | 1.15 | 1.13 | |||||||||||||||
|
Effect of preferred equity
|
4.23 | 4.29 | 4.33 | 4.20 | 5.87 | |||||||||||||||
|
Tier I capital ratio (Regulatory)
|
13.69 | % | 13.69 | % | 13.75 | % | 13.62 | % | 7.43 | % | ||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
|
Financial Highlights
|
|
Loan Portfolio Composition at Period-End (1)
|
|
2012
|
2011 |
Linked
|
Year over
|
|||||||||||||||||||||||||
|
First
|
Fourth
|
Third
|
Second
|
First
|
Quarter
|
Year
|
||||||||||||||||||||||
|
(in millions)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Change
|
Change
|
|||||||||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||||||||||
|
Commercial (sec.by RE)
|
$ | 1,843 | $ | 1,822 | $ | 1,771 | $ | 1,742 | $ | 1,692 | $ | 21 | $ | 151 | ||||||||||||||
|
Commercial & industrial
|
440 | 428 | 429 | 428 | 431 | 12 | 9 | |||||||||||||||||||||
|
Commercial construction
|
167 | 164 | 169 | 195 | 213 | 3 | (46 | ) | ||||||||||||||||||||
|
Total commercial
|
2,450 | 2,414 | 2,369 | 2,365 | 2,336 | 36 | 114 | |||||||||||||||||||||
|
Residential mortgage
|
1,131 | 1,135 | 1,150 | 1,177 | 1,187 | (4 | ) | (56 | ) | |||||||||||||||||||
|
Residential construction
|
436 | 448 | 474 | 502 | 550 | (12 | ) | (114 | ) | |||||||||||||||||||
|
Consumer installment
|
111 | 113 | 117 | 119 | 121 | (2 | ) | (10 | ) | |||||||||||||||||||
|
Total loans
|
$ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | 18 | (66 | ) | |||||||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||||||||||
|
North Georgia
|
$ | 1,408 | $ | 1,426 | $ | 1,478 | $ | 1,500 | $ | 1,531 | (18 | ) | (123 | ) | ||||||||||||||
|
Atlanta MSA
|
1,239 | 1,220 | 1,192 | 1,188 | 1,179 | 19 | 60 | |||||||||||||||||||||
|
North Carolina
|
588 | 597 | 607 | 626 | 640 | (9 | ) | (52 | ) | |||||||||||||||||||
|
Coastal Georgia
|
366 | 346 | 316 | 325 | 312 | 20 | 54 | |||||||||||||||||||||
|
Gainesville MSA
|
262 | 265 | 272 | 275 | 282 | (3 | ) | (20 | ) | |||||||||||||||||||
|
East Tennessee
|
265 | 256 | 245 | 249 | 250 | 9 | 15 | |||||||||||||||||||||
|
Total loans
|
$ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | 18 | (66 | ) | |||||||||||||||
|
RESIDENTIAL CONSTRUCTION
|
||||||||||||||||||||||||||||
|
Dirt loans
|
||||||||||||||||||||||||||||
|
Acquisition & development
|
$ | 86 | $ | 88 | $ | 97 | $ | 105 | $ | 116 | (2 | ) | (30 | ) | ||||||||||||||
|
Land loans
|
57 | 61 | 60 | 62 | 69 | (4 | ) | (12 | ) | |||||||||||||||||||
|
Lot loans
|
203 | 207 | 216 | 218 | 228 | (4 | ) | (25 | ) | |||||||||||||||||||
|
Total
|
346 | 356 | 373 | 385 | 413 | (10 | ) | (67 | ) | |||||||||||||||||||
|
House loans
|
||||||||||||||||||||||||||||
|
Spec
|
57 | 59 | 64 | 74 | 88 | (2 | ) | (31 | ) | |||||||||||||||||||
|
Sold
|
32 | 33 | 37 | 43 | 49 | (1 | ) | (17 | ) | |||||||||||||||||||
|
Total
|
89 | 92 | 101 | 117 | 137 | (3 | ) | (48 | ) | |||||||||||||||||||
|
Total residential construction
|
$ | 435 | $ | 448 | $ | 474 | $ | 502 | $ | 550 | (13 | ) | (115 | ) | ||||||||||||||
|
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
|
||||||||||||||||||||||||||||
|
Dirt loans
|
||||||||||||||||||||||||||||
|
Acquisition & development
|
$ | 17 | $ | 17 | $ | 19 | $ | 20 | $ | 22 | - | (5 | ) | |||||||||||||||
|
Land loans
|
13 | 14 | 15 | 16 | 19 | (1 | ) | (6 | ) | |||||||||||||||||||
|
Lot loans
|
22 | 22 | 22 | 22 | 24 | - | (2 | ) | ||||||||||||||||||||
|
Total
|
52 | 53 | 56 | 58 | 65 | (1 | ) | (13 | ) | |||||||||||||||||||
|
House loans
|
||||||||||||||||||||||||||||
|
Spec
|
27 | 27 | 28 | 30 | 34 | - | (7 | ) | ||||||||||||||||||||
|
Sold
|
7 | 6 | 8 | 9 | 11 | 1 | (4 | ) | ||||||||||||||||||||
|
Total
|
34 | 33 | 36 | 39 | 45 | 1 | (11 | ) | ||||||||||||||||||||
|
Total residential construction
|
$ | 86 | $ | 86 | $ | 92 | $ | 97 | $ | 110 | - | (24 | ) | |||||||||||||||
(1) Excludes total loans of $47.2 million, $54.5 million, $57.8 million, $70.8 million and $63.3 million as of March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, 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 2012
|
Fourth Quarter 2011
|
Third Quarter 2011
|
||||||||||||||||||||||||||||||||||
|
(in thousands)
|
Non-performing Loans |
Foreclosed Properties |
Total
NPAs |
Non-performing
Loans |
Foreclosed Properties |
Total NPAs |
Non-performing Loans |
Foreclosed
Properties |
Total
NPAs |
|||||||||||||||||||||||||||
|
NPAs BY CATEGORY
|
||||||||||||||||||||||||||||||||||||
|
Commercial (sec.by RE)
|
$ | 26,081 | $ | 10,808 | $ | 36,889 | $ | 27,322 | $ | 9,745 | $ | 37,067 | $ | 21,998 | $ | 8,880 | $ | 30,878 | ||||||||||||||||||
|
Commercial & industrial
|
36,314 | - | 36,314 | 34,613 | - | 34,613 | 53,009 | - | 53,009 | |||||||||||||||||||||||||||
|
Commercial construction
|
23,319 | 3,266 | 26,585 | 16,655 | 3,336 | 19,991 | 11,370 | 5,862 | 17,232 | |||||||||||||||||||||||||||
|
Total commercial
|
85,714 | 14,074 | 99,788 | 78,590 | 13,081 | 91,671 | 86,377 | 14,742 | 101,119 | |||||||||||||||||||||||||||
|
Residential mortgage
|
18,741 | 5,882 | 24,623 | 22,358 | 6,927 | 29,285 | 22,671 | 7,960 | 30,631 | |||||||||||||||||||||||||||
|
Residential construction
|
24,341 | 11,931 | 36,272 | 25,523 | 12,851 | 38,374 | 34,472 | 21,561 | 56,033 | |||||||||||||||||||||||||||
|
Consumer installment
|
908 | - | 908 | 1,008 | - | 1,008 | 964 | - | 964 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | ||||||||||||||||||
|
Balance as a % of
|
||||||||||||||||||||||||||||||||||||
|
Unpaid Principal
|
70.6 | % | 36.1 | % | 59.4 | % | 71.3 | % | 35.9 | % | 59.3 | % | 77.8 | % | 33.4 | % | 59.3 | % | ||||||||||||||||||
|
NPAs BY MARKET
|
||||||||||||||||||||||||||||||||||||
|
North Georgia
|
$ | 81,117 | $ | 14,559 | $ | 95,676 | $ | 88,600 | $ | 15,136 | $ | 103,736 | $ | 105,078 | $ | 17,467 | $ | 122,545 | ||||||||||||||||||
|
Atlanta MSA
|
22,321 | 7,647 | 29,968 | 14,480 | 6,169 | 20,649 | 13,350 | 12,971 | 26,321 | |||||||||||||||||||||||||||
|
North Carolina
|
15,765 | 4,650 | 20,415 | 15,100 | 5,365 | 20,465 | 13,243 | 7,941 | 21,184 | |||||||||||||||||||||||||||
|
Coastal Georgia
|
5,622 | 1,268 | 6,890 | 5,248 | 1,620 | 6,868 | 5,600 | 2,354 | 7,954 | |||||||||||||||||||||||||||
|
Gainesville MSA
|
2,210 | 3,387 | 5,597 | 2,069 | 3,760 | 5,829 | 5,311 | 2,495 | 7,806 | |||||||||||||||||||||||||||
|
East Tennessee
|
2,669 | 376 | 3,045 | 1,982 | 809 | 2,791 | 1,902 | 1,035 | 2,937 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | ||||||||||||||||||
|
NPA ACTIVITY
|
||||||||||||||||||||||||||||||||||||
|
Beginning Balance
|
$ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | $ | 71,065 | $ | 47,584 | $ | 118,649 | ||||||||||||||||||
|
Loans placed on non-accrual
|
32,437 | - | 32,437 | 45,675 | - | 45,675 | 103,365 | - | 103,365 | |||||||||||||||||||||||||||
|
Payments received
|
(5,945 | ) | - | (5,945 | ) | (1,884 | ) | - | (1,884 | ) | (3,995 | ) | - | (3,995 | ) | |||||||||||||||||||||
|
Loan charge-offs
|
(14,733 | ) | - | (14,733 | ) | (44,757 | ) | - | (44,757 | ) | (15,335 | ) | - | (15,335 | ) | |||||||||||||||||||||
|
Foreclosures
|
(9,534 | ) | 9,534 | - | (16,039 | ) | 16,039 | - | (10,616 | ) | 10,616 | - | ||||||||||||||||||||||||
|
Capitalized costs
|
- | 329 | 329 | - | 141 | 141 | - | 818 | 818 | |||||||||||||||||||||||||||
|
Note / property sales
|
- | (8,631 | ) | (8,631 | ) | - | (20,651 | ) | (20,651 | ) | - | (13,787 | ) | (13,787 | ) | |||||||||||||||||||||
|
Write downs
|
- | (2,111 | ) | (2,111 | ) | - | (3,893 | ) | (3,893 | ) | - | (1,772 | ) | (1,772 | ) | |||||||||||||||||||||
|
Net gains (losses) on sales
|
- | (93 | ) | (93 | ) | - | (3,040 | ) | (3,040 | ) | - | 804 | 804 | |||||||||||||||||||||||
|
Ending Balance
|
$ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | ||||||||||||||||||
|
First Quarter 2012
|
Fourth Quarter 2011
|
Third Quarter 2011
|
||||||||||||||||||||||
|
Net Charge-
|
Net Charge-
|
Net Charge-
|
||||||||||||||||||||||
|
Offs to
|
Offs to
|
Offs to
|
||||||||||||||||||||||
|
Net
|
Average
|
Net
|
Average
|
Net
|
Average
|
|||||||||||||||||||
|
(in thousands)
|
Charge-Offs
|
Loans (2)
|
Charge-Offs
|
Loans (2)
|
Charge-Offs
|
Loans (2)
|
||||||||||||||||||
|
NET CHARGE-OFFS BY CATEGORY
|
||||||||||||||||||||||||
|
Commercial (sec.by RE)
|
$ | 3,697 | .81 | % | $ | 4,962 | 1.09 | % | $ | 2,192 | .50 | % | ||||||||||||
|
Commercial & industrial
|
669 | .62 | 18,940 | 17.47 | 420 | .39 | ||||||||||||||||||
|
Commercial construction
|
334 | .81 | 3,318 | 7.88 | 1,625 | 3.54 | ||||||||||||||||||
|
Total commercial
|
4,700 | .78 | 27,220 | 4.51 | 4,237 | .71 | ||||||||||||||||||
|
Residential mortgage
|
5,375 | 1.91 | 5,887 | 2.04 | 6,110 | 2.09 | ||||||||||||||||||
|
Residential construction
|
5,314 | 4.84 | 12,090 | 10.36 | 6,381 | 5.19 | ||||||||||||||||||
|
Consumer installment
|
478 | 1.72 | 427 | 1.47 | 818 | 2.75 | ||||||||||||||||||
|
Total
|
$ | 15,867 | 1.55 | $ | 45,624 | 4.39 | $ | 17,546 | 1.68 | |||||||||||||||
|
NET CHARGE-OFFS BY MARKET
|
||||||||||||||||||||||||
|
North Georgia
|
$ | 9,022 | 2.56 | % | $ | 34,970 | 9.46 | % | $ | 8,124 | 2.16 | % | ||||||||||||
|
Atlanta MSA
|
2,729 | .89 | 4,195 | 1.37 | 2,813 | .94 | ||||||||||||||||||
|
North Carolina
|
1,679 | 1.14 | 3,180 | 2.10 | 3,608 | 2.31 | ||||||||||||||||||
|
Coastal Georgia
|
1,329 | 1.53 | 335 | .41 | 709 | .88 | ||||||||||||||||||
|
Gainesville MSA
|
883 | 1.35 | 2,572 | 3.84 | 1,804 | 2.64 | ||||||||||||||||||
|
East Tennessee
|
225 | .34 | 372 | .59 | 488 | .78 | ||||||||||||||||||
|
Total
|
$ | 15,867 | 1.55 | $ | 45,624 | 4.39 | $ | 17,546 | 1.68 | |||||||||||||||
| (1) |
Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
|
| (2) |
Annualized.
|
|
UNITED COMMUNITY BANKS, INC.
|
|
Consolidated Statement of Operations (Unaudited)
|
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
(in thousands, except per share data)
|
2012
|
2011
|
||||||
|
Interest revenue:
|
||||||||
|
Loans, including fees
|
$ | 55,759 | $ | 61,107 | ||||
|
Investment securities, including tax exempt of $250 and $259
|
13,004 | 13,604 | ||||||
|
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks
|
1,012 | 819 | ||||||
|
Total interest revenue
|
69,775 | 75,530 | ||||||
|
Interest expense:
|
||||||||
|
Deposits:
|
||||||||
|
NOW
|
637 | 1,324 | ||||||
|
Money market
|
641 | 2,028 | ||||||
|
Savings
|
37 | 77 | ||||||
|
Time
|
6,159 | 11,732 | ||||||
|
Total deposit interest expense
|
7,474 | 15,161 | ||||||
|
Federal funds purchased, repurchase agreements and other short-term borrowings
|
1,045 | 1,042 | ||||||
|
Federal Home Loan Bank advances
|
466 | 590 | ||||||
|
Long-term debt
|
2,372 | 2,780 | ||||||
|
Total interest expense
|
11,357 | 19,573 | ||||||
|
Net interest revenue
|
58,418 | 55,957 | ||||||
|
Provision for loan losses
|
15,000 | 190,000 | ||||||
|
Net interest revenue after provision for loan losses
|
43,418 | (134,043 | ) | |||||
|
Fee revenue:
|
||||||||
|
Service charges and fees
|
7,783 | 6,720 | ||||||
|
Mortgage loan and other related fees
|
2,099 | 1,494 | ||||||
|
Brokerage fees
|
813 | 677 | ||||||
|
Securities gains, net
|
557 | 55 | ||||||
|
Loss from prepayment of debt
|
(482 | ) | - | |||||
|
Other
|
4,609 | 2,892 | ||||||
|
Total fee revenue
|
15,379 | 11,838 | ||||||
|
Total revenue
|
58,797 | (122,205 | ) | |||||
|
Operating expenses:
|
||||||||
|
Salaries and employee benefits
|
25,225 | 24,924 | ||||||
|
Communications and equipment
|
3,155 | 3,344 | ||||||
|
Occupancy
|
3,771 | 4,074 | ||||||
|
Advertising and public relations
|
846 | 978 | ||||||
|
Postage, printing and supplies
|
979 | 1,118 | ||||||
|
Professional fees
|
1,975 | 3,330 | ||||||
|
Foreclosed property
|
3,825 | 64,899 | ||||||
|
FDIC assessments and other regulatory charges
|
2,510 | 5,413 | ||||||
|
Amortization of intangibles
|
732 | 762 | ||||||
|
Other
|
3,937 | 6,429 | ||||||
|
Total operating expenses
|
46,955 | 115,271 | ||||||
|
Net income (loss) before income taxes
|
11,842 | (237,476 | ) | |||||
|
Income tax expense (benefit)
|
314 | (140 | ) | |||||
|
Net income (loss)
|
11,528 | (237,336 | ) | |||||
|
Preferred stock dividends and discount accretion
|
3,030 | 2,778 | ||||||
|
Net income (loss) available to common shareholders
|
$ | 8,498 | $ | (240,114 | ) | |||
|
Earnings (loss) per common share - Basic / Diluted
|
$ | .15 | $ | (13.00 | ) | |||
|
Weighted average common shares outstanding - Basic / Diluted
|
57,764 | 18,466 | ||||||
|
UNITED COMMUNITY BANKS, INC.
|
|
Consolidated Balance Sheet
|
|
March 31,
|
December 31,
|
March 31,
|
||||||||||
|
(in thousands, except share and per share data)
|
2012
|
2011
|
2011
|
|||||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||
|
ASSETS
|
||||||||||||
|
Cash and due from banks
|
$ | 53,147 | $ | 53,807 | $ | 153,891 | ||||||
|
Interest-bearing deposits in banks
|
139,439 | 139,609 | 465,656 | |||||||||
|
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments
|
235,000 | 185,000 | 470,087 | |||||||||
|
Cash and cash equivalents
|
427,586 | 378,416 | 1,089,634 | |||||||||
|
Securities available for sale
|
1,898,815 | 1,790,047 | 1,638,494 | |||||||||
|
Securities held to maturity (fair value $318,490, $343,531 and $248,361)
|
303,636 | 330,203 | 245,430 | |||||||||
|
Loans held for sale
|
- | - | 80,629 | |||||||||
|
Mortgage loans held for sale
|
24,809 | 23,881 | 25,364 | |||||||||
|
Loans, net of unearned income
|
4,127,566 | 4,109,614 | 4,194,372 | |||||||||
|
Less allowance for loan losses
|
113,601 | 114,468 | 133,121 | |||||||||
|
Loans, net
|
4,013,965 | 3,995,146 | 4,061,251 | |||||||||
|
Assets covered by loss sharing agreements with the FDIC
|
72,854 | 78,145 | 125,789 | |||||||||
|
Premises and equipment, net
|
174,419 | 175,088 | 179,143 | |||||||||
|
Bank owned life insurance
|
80,956 | 80,599 | 79,777 | |||||||||
|
Accrued interest receivable
|
20,292 | 20,693 | 21,687 | |||||||||
|
Goodwill and other intangible assets
|
7,695 | 8,428 | 10,684 | |||||||||
|
Foreclosed property
|
31,887 | 32,859 | 54,378 | |||||||||
|
Unsettled securities sales
|
43,527 | - | - | |||||||||
|
Other assets
|
73,252 | 69,915 | 97,228 | |||||||||
|
Total assets
|
$ | 7,173,693 | $ | 6,983,420 | $ | 7,709,488 | ||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||
|
Liabilities:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Demand
|
$ | 1,101,757 | $ | 992,109 | $ | 864,708 | ||||||
|
NOW
|
1,389,016 | 1,509,896 | 1,320,136 | |||||||||
|
Money market
|
1,123,734 | 1,038,778 | 967,938 | |||||||||
|
Savings
|
214,150 | 199,007 | 193,591 | |||||||||
|
Time:
|
||||||||||||
|
Less than $100,000
|
1,207,479 | 1,332,394 | 1,576,505 | |||||||||
|
Greater than $100,000
|
796,882 | 847,152 | 990,289 | |||||||||
|
Brokered
|
167,521 | 178,647 | 684,581 | |||||||||
|
Total deposits
|
6,000,539 | 6,097,983 | 6,597,748 | |||||||||
|
Federal funds purchased, repurchase agreements, and other short-term borrowings
|
101,925 | 102,577 | 102,107 | |||||||||
|
Federal Home Loan Bank advances
|
215,125 | 40,625 | 55,125 | |||||||||
|
Long-term debt
|
120,245 | 120,225 | 150,166 | |||||||||
|
Unsettled securities purchases
|
119,565 | 10,325 | 177,532 | |||||||||
|
Accrued expenses and other liabilities
|
36,755 | 36,199 | 40,766 | |||||||||
|
Total liabilities
|
6,594,154 | 6,407,934 | 7,123,444 | |||||||||
|
Shareholders’ equity:
|
||||||||||||
|
Preferred stock, $1 par value; 10,000,000 shares authorized;
|
||||||||||||
|
Series A; $10 stated value; 21,700 shares issued and outstanding
|
217 | 217 | 217 | |||||||||
|
Series B; $1,000 stated value; 180,000 shares issued and outstanding
|
177,451 | 177,092 | 176,049 | |||||||||
|
Series D; $1,000 stated value; 16,613 shares issued and outstanding
|
16,613 | 16,613 | 16,613 | |||||||||
|
Series F; $1,000 stated value; 195,872 shares issued and outstanding
|
- | - | 195,872 | |||||||||
|
Series G; $1,000 stated value; 151,185 shares issued and outstanding
|
- | - | 151,185 | |||||||||
|
Common stock, $1 par value; 100,000,000 shares authorized;
|
||||||||||||
|
41,688,647, 41,647,100 and 20,903,111 shares issued and outstanding
|
41,689 | 41,647 | 20,903 | |||||||||
|
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
|
||||||||||||
|
15,914,209 shares issued and outstanding
|
15,914 | 15,914 | - | |||||||||
|
Common stock issuable; 90,126, 93,681 and 79,428 shares
|
2,948 | 3,233 | 3,681 | |||||||||
|
Capital surplus
|
1,056,135 | 1,054,940 | 738,963 | |||||||||
|
Accumulated deficit
|
(722,363 | ) | (730,861 | ) | (732,390 | ) | ||||||
|
Accumulated other comprehensive (loss) income
|
(9,065 | ) | (3,309 | ) | 14,951 | |||||||
|
Total shareholders’ equity
|
579,539 | 575,486 | 586,044 | |||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,173,693 | $ | 6,983,420 | $ | 7,709,488 | ||||||
|
UNITED COMMUNITY BANKS, INC.
|
|
Average Consolidated Balance Sheets and Net Interest Analysis
|
|
For the Three Months Ended March 31,
|
| 2012 | 2011 | |||||||||||||||||||||||
|
Average
|
Avg.
|
Average
|
Avg.
|
|||||||||||||||||||||
|
(dollars in thousands, taxable equivalent)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Loans, net of unearned income (1)(2)
|
$ | 4,168,440 | $ | 55,842 | 5.39 | % | $ | 4,598,860 | $ | 61,070 | 5.39 | % | ||||||||||||
|
Taxable securities (3)
|
2,127,794 | 12,754 | 2.40 | 1,599,481 | 13,345 | 3.34 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
25,438 | 410 | 6.45 | 25,827 | 424 | 6.57 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
377,988 | 1,215 | 1.29 | 677,453 | 1,126 | .66 | ||||||||||||||||||
|
Total interest-earning assets
|
6,699,660 | 70,221 | 4.21 | 6,901,621 | 75,965 | 4.45 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(117,803 | ) | (169,113 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
54,664 | 134,341 | ||||||||||||||||||||||
|
Premises and equipment
|
174,849 | 179,353 | ||||||||||||||||||||||
|
Other assets (3)
|
233,676 | 332,827 | ||||||||||||||||||||||
|
Total assets
|
$ | 7,045,046 | $ | 7,379,029 | ||||||||||||||||||||
|
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,458,112 | 637 | .18 | $ | 1,373,142 | 1,324 | .39 | ||||||||||||||||
|
Money market
|
1,069,658 | 641 | .24 | 928,542 | 2,028 | .89 | ||||||||||||||||||
|
Savings
|
205,402 | 37 | .07 | 187,423 | 77 | .17 | ||||||||||||||||||
|
Time less than $100,000
|
1,271,351 | 3,026 | .96 | 1,540,342 | 5,451 | 1.44 | ||||||||||||||||||
|
Time greater than $100,000
|
821,164 | 2,415 | 1.18 | 990,881 | 4,151 | 1.70 | ||||||||||||||||||
|
Brokered
|
161,335 | 718 | 1.79 | 698,288 | 2,130 | 1.24 | ||||||||||||||||||
|
Total interest-bearing deposits
|
4,987,022 | 7,474 | .60 | 5,718,618 | 15,161 | 1.08 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
102,258 | 1,045 | 4.11 | 101,097 | 1,042 | 4.18 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
138,372 | 466 | 1.35 | 55,125 | 590 | 4.34 | ||||||||||||||||||
|
Long-term debt
|
120,237 | 2,372 | 7.93 | 150,157 | 2,780 | 7.51 | ||||||||||||||||||
|
Total borrowed funds
|
360,867 | 3,883 | 4.33 | 306,379 | 4,412 | 5.84 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
5,347,889 | 11,357 | .85 | 6,024,997 | 19,573 | 1.32 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,040,587 | 841,351 | ||||||||||||||||||||||
|
Other liabilities
|
79,612 | 58,634 | ||||||||||||||||||||||
|
Total liabilities
|
6,468,088 | 6,924,982 | ||||||||||||||||||||||
|
Shareholders’ equity
|
576,958 | 454,047 | ||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,045,046 | $ | 7,379,029 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 58,864 | $ | 56,392 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.36 | % | 3.13 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.53 | % | 3.30 | % | ||||||||||||||||||||
|
(1)
|
Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
|
|
(2)
|
Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
|
|
(3)
|
Securities available for sale are shown at amortized cost. Pretax unrealized gains of $23.6 million in 2012 and $27.2 million in 2011 are included in other assets for purposes of this presentation.
|
|
(4)
|
Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
|
Exhibit 99.2
 |
United Community Banks, Inc.
Investor Presentation
First Quarter 2012
April 26,2012
Jimmy C. Tallent
President & CEO
Rex S. Schuette
EVP & CFO
rex_schuette@ucbi.com
(706) 781-2266
David P. Shearrow
EVP & CRO
|
 |
2
Cautionary Statement
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United Community Banks, Inc.’s filings with the Securities and Exchange Commission including its 2011 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements”. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
|
 |
3
Non-GAAP Measures
This presentation also contains financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). Such non-GAAP financial measures include the following: net interest margin – pre credit, core net interest margin, core net interest revenue, core fee revenue, core operating expense, core earnings, net operating (loss) income and net operating (loss) earnings per share, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk-weighted assets. The most comparable GAAP measures to these measures are: net interest margin, net interest revenue, fee revenue, operating expense, net (loss) income, diluted (loss) earnings per share and equity to assets.
Management uses these non-GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as for comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. For a reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non-GAAP Reconcilement Tables’ at the end of the Appendix to this presentation.
|
 |
4
United at a Glance
Founded in 1950
Third-largest bank holding company in Georgia
Headquartered in Blairsville, Georgia with 106 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee
1,707 employees
27 Banks and 106 Offices
Deposit Market Share(1)
Market Banks Offices Deposit Share Rank
North Georgia 11 23 33% 1
Atlanta MSA 10 38 4 7
Gainesville MSA 1 5 14 3
Coastal Georgia 2 8 6 7
Western North 1 21 13 3
East Tennessee Carolina 2 11 2 10
Key Statistics as of 3/31/12
(billions)
Total assets $7.17
Total deposits $6.00
Loans $4.13
¹ FDIC deposit market share and rank as of 6/11 for markets where United takes deposits. Source: SNL and FDIC.
|
 |
5
Highlights First Quarter
Improving Quarterly Results
Net Income of $11.5 million, or 15 cents per share
Third quarterly profit in past four quarters
Core earnings (pre-tax, pre-credit) of $29.3 million; highest level since 4Q 2009
Loan Growth Traction
Second linked-quarter with loan growth, first time since March 2008
Strong Core Transaction Deposit Growth
Up 21% annualized
Building customer deposit base
Represents 52% of total customer deposits compared to 34%
Non Performing Assets Hold Steady
Charge-offs declining
|
 |
6
LOAN PORTFOLIO & CREDIT QUALITY
|
 |
7
Loan Portfolio (total $4.13 billion)
Geographic Diversity
$ in millions
|
 |
8
Commercial Loans (total $2.45 billion)
Geographic Diversity
$ in millions
|
 |
9
Commercial Real Estate (by loan type)
(in millions)
March 31, 2012
Loan Type Owner Occupied Income Producing Total Percent
Office Buildings $297 $207 $504 27%
Retail 122 142 264 14
Small Warehouses/Storage 117 74 191 10
Multi-Residential/Other Properties 64 92 156 9
Churches 138 - 138 8
Convenience Stores 74 23 97 5
Hotels/Motels - 89 89 5
Franchise / Restaurants 38 34 72 4
Farmland 62 - 62 4
Golf Course/Recreation 59 - 59 3
Manufacturing Facility 47 9 56 3
Auto Dealership/Service 45 8 53 3
Leasehold Property 17 10 27 1
Daycare Facility 16 9 25 1
Other Small Business 11 8 19 1
Carwash 18 - 18 1
Funeral Home 12 1 13 1
Total $1,137 $706 $1,843
Portfolio Characteristics
62% owner-occupied
Small business, doctors, dentists, attorneys, CPAs
$12 million project limit
Average Loan Size
-$469 Composite CRE
-$380 Owner Occupied
-$583 Income Producing
|
 |
10
Commercial Construction (by loan type)
(in millions)
March 31, 2012
Loan Type Amount Percent
Land Develop - Vacant (Improved) $66 39%
Raw Land - Vacant (Unimproved) 55 33
Commercial Land Development 23 14
Golf Course/Country Club 6 4
Office Buildings 4 2
Churches 4 2
Warehouse 2 1
Miscellaneous Construction 7 5
Total Commercial Construction $167 100%
Portfolio Characteristics
Average loan size: $455k
|
 |
11
Residential Mortgage (total $1.13 billion)
Geographic Diversity
$ in millions
Origination Characteristics
No broker loans
Policy Max LTV: 80-85%
54% of HE Primary Lien
|
 |
12
Residential Construction (total $.44 billion)
Geographic Diversity
$ in millions
Average Loan Size
Spec $221k
Sold $126k
Develop $627k
Raw Land $142k
|
 |
13
Residential Construction – Total Company
(in millions) 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs. 1Q11
Land Loans
Developing Land $86 $88 $97 $105 $116 $(30)
Raw Land 57 61 60 62 69 (12)
Lot Loans 203 207 216 218 228 (25)
Total 346 356 373 385 413 (67)
Construction Loans
Spec 57 59 64 74 88 (31)
Sold 32 33 37 43 49 (17)
Total 89 92 101 117 137 (48)
Total Res Construction $435 $448 $474 $502 $550 $(115)
By Region
Atlanta $86 $86 $92 $97 $110 $(24)
Gainesville MSA 20 20 25 25 26 (6)
North Georgia 205 214 229 249 266 (61)
North Carolina 88 91 92 95 106 (18)
Coastal Georgia 23 24 24 24 27 (4)
Tennessee 13 13 12 12 15 (2)
Total Res Construction $435 $448 $474 $502 $550 $(115)
|
 |
14
New Loans Funded – Category and Market
(in millions)
CATEGORY 1Q12
Commercial RE:
Owner Occupied $55.0
Income Producing 15.3
Total Commercial RE 70.3
Commercial C & I 26.0
Commercial Constr. 2.9
Residential 24.7
Residential Constr. 6.4
Consumer 1.1
Total Categories $131.4
MARKET 1Q12
Atlanta $54.2
Coastal Georgia 25.4
N. Georgia 25.1
Tennessee 14.1
North Carolina 7.9
Gainesville 4.7
Total Markets $131.4
|
 |
15
New Loan Commitments – Category and Market
(in millions)
CATEGORY 1Q12
Commercial RE:
Owner Occupied $55.7
Income Producing 16.7
Total Commercial RE 72.4
Commercial C & I 39.0
Commercial Constr. 6.1
Residential 29.0
Residential Constr. 20.9
Consumer 1.2
Total Categories $168.6
MARKET 1Q12
Atlanta $70.9
N. Georgia 36.3
Coastal Georgia 28.0
Tennessee 18.7
North Carolina 9.8
Gainesville 4.9
Total Markets $168.6
|
 |
16
Credit Quality
(in millions)
1Q12 4Q11 3Q11 2Q11 1Q11
Operating Net Charge-offs(1) $15.9 $20.6 $17.5 $16.5 $231.6
as % of Average Loans(1) 1.55% 1.99% 1.68% 1.58% 20.71%
Allowance for Loan Losses $113.6 $114.5 $146.1 $127.6 $133.1
as % of Total Loans 2.75% 2.79% 3.55% 3.07% 3.17%
as % of NPLs 88 90 101 180 159
Past Due Loans (30 89 Days) .85% .75% .70% 0.65% 1.26%
Non-Performing Loans $129.7 $127.5 $144.5 $71.0 $83.7
OREO 31.9 32.8 44.2 47.6 54.4
Total NPAs $161.6 $160.3 $188.7 $118.6 $138.1
Accruing TDRs $125.8 $105.8 $69.8 $41.5 $44.4
As % of Original Principal Balance
Non-Performing Loans 70.6% 71.3% 77.8% 64.5% 57.3%
OREO 36.1 35.9 33.4 32.6 30.3
Total NPAs
as % of Total Assets 2.26 2.30 2.74 1.66 1.79
as % of Loans & OREO 3.88 3.87 4.54 2.82 3.25
(1) Excludes $25 million of charge-offs for largest loan relationship in 4Q11.
|
 |
17
NPL Inflow Trends
Quarterly NPL Inflows Since 2009 ($mm)
83.2% Decline from Peak
$200.0 $150.0 $100.0 $50.0 $0.0
$174.8 $177.7 $193.3 $174.9 $139.0 $155.0 $119.8 $81.0 $54.7 $35.9 $103.4 $45 7 $32.4
Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘10 Q2 ‘10 Q3 ‘10 Q4 ‘10 Q1 ‘11 Q2 ‘11 Q3 ‘11 Q4 ‘11
Resi Construction Com. Construction Resi. Mortgage Com. RE Commercial Consumer
Total NPLs ($mm)
|
 |
18
Net Charge-offs by Loan Category
(in thousands)
1Q12 % of Average Loans (Annualized)
Total % of Avg Loans 4Q12(1) 3Q11 2Q11(2)
Commercial (Sec. by RE):
Owner Occupied $2,462 .87% 1.16% .34% .89%
Income Producing 1,235 .70 .57 .71 1.54
Total Comm (Sec. by RE) 3,697 .81 .90 .50 1.16
Commercial & Industrial 669 .62 1.08 3.54 4.31
Commercial Construction 334 .81 1.75 .39 .59
Total Commercial 4,700 .78 1.06 .71 1.33
Residential Mortgage 5,375 1.91 2.04 2.09 1.97
Residential Construction 5,314 4.84 6.77 5.19 7.19
Consumer/ Installment 478 1.72 1.47 2.75 2.07
Total Net Charge-offs $15,867 1.55 1.99 1.68 2.27
(1) Excludes charge-offs for largest loan relationship of Commerical Construction $2,863; Commercial & Industrial $17,046; CRE Income Producing $901; and, Residential Construction $4,190
(2) Calculated excluding losses related to asset disposition plans.
|
 |
19
Net Charge-offs by Market
(in millions)
1Q12 % of Average Loans (Annualized)
Total % of Avg Loans 4Q11(1) 3Q11 2Q11(2)
North Georgia $9,022 2.56% 2.70% 2.16% 2.71%
Atlanta MSA 2,729 .89 1.37 .94 1.66
North Carolina 1,679 1.14 2.10 2.31 2.67
Coastal Georgia 1,329 1.53 .41 .88 1.52
Gainesville MSA 883 1.35 3.84 2.64 3.73
East Tennessee 225 .34 .59 .78 .76
Total $15,867 1.55 1.99 1.68 2.27
(1) Excludes charge-offs for largest loan relationship of in North Georgia of $25,000
(2) Calculated excluding losses related to asset disposition plans.
|
 |
20
NPAs by Loan Category and Market
(in thousands)
1Q12
NPLs OREO Total NPAs
LOAN CATEGORY
Commercial (sec. by RE):
Owner Occupied $12,830 $7,892 $20,722
Income Producing 13,251 2,916 16,167
Commercial & Industrial 36,314 - 36,314
Commercial Construction 23,319 3,266 26,585
Total Commercial 85,714 14,074 99,788
Residential Mortgage 18,741 5,882 24,623
Residential Construction 24,341 11,931 36,272
Consumer/ Installment 908 - 908
Total $129,704 $31,887 $161,591
1Q12
NPLs OREO Total NPAs
MARKETS
North Georgia $81,117 $14,559 $95,676
Atlanta MSA 22,321 7,647 29,968
North Carolina 15,765 4,650 20,415
Coastal Georgia 5,622 1,268 6,890
Gainesville MSA 2,210 3,387 5,597
East Tennessee 2,669 376 3,045
Total $129,704 $31,887 $161,591
|
 |
21
Financial Review
|
 |
22
Core Earnings Summary
(in thousands)
Variance - Incr / (Decr)
1Q12 4Q11 1Q11
Net Interest Revenue $58,864 $(186) $458
Fee Revenue 13,091 1,649 2,739
Gross Revenue 71,955 1,463 3,197
Operating Expense (Excl OREO) 42,670 (1,173) (3,974)
Pre-Tax, Pre-Credit (Core) $29,285 $2,636 $7,171
Net Interest Margin 3.53% .02% .23%
|
 |
23
Net Interest Margin
NIM Characteristics
Margin
+2 bps vs. 4Q11
+23 bps vs. 1Q11
Lowered Core and CD Deposit Pricing
Loan Pricing Pressure
1Q Excess Liquidity – Lowered Margin by 53 bps and 63 bps in Q4
NIM
NIM – Core Credit(1)(2)
(1) Excludes impact of reversal of interest on performing loans classified as held for sale – Q1 2011 (2) Excluding impact of nonaccrual loans, OREO and interest reversals
|
 |
24
Margin – Credit Costs
.45% .40% .35% .30% .25% .20% .15% .10% .05% .00%
1Q11 .42%* .11% .16% .15%
2Q11 .26% .05% .07% .14%
3Q11 .24% .07% .07% .10%
4Q11 .26% .05% .13% .08%
1Q12 .23% .05% .12% .06%
Interest Reversals
Carry Cost of NPAs
Lost Interest on C/Os
Credit Costs Impacting Margin
Historically 8 to 12 bps
Significant improvement after de-risking balance sheet 1Q11
Cost 1Q12 vs. Historical – 11 bps (annual earnings impact of $7.4 million)
1 bps = $670 thousand in NIR
*Excludes bulk loan sale impact of 10 bps
|
 |
25
Key Drivers of Net Interest Revenue / Margin
Positive Impact on Margin
Loan pricing under pressure
Actively lowering deposit pricing
|
 |
26
Deposit Pricing, Excluding Brokered Deposits
Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter
|
 |
27
Deposit Mix (total $6.0 billion) (in millions)
1Q12 4Q11 1Q11 4Q08
Demand / NOW $1,722 $1,674 $1,576 $1,457
MMDA / Savings 1,331 1,228 1,149 630
Core Transaction 3,053 2,902 2,725 2,087
+151 +328
21% Annualized Growth
+966
46% Growth
Time < $100,000 1,201 1,326 1,570 1,945
Public Deposits 782 844 628 755
Total Core 5,036 5,072 4,923 4,787
Time >$100,000 759 807 946 1,336
Public Deposits 38 40 44 87
Total Customer 5,833 5,919 5,913 6,210
Brokered Deposits 168 179 685 793
Total Deposits $6,001 $6,098 $6,598 $7,003
1Q12 $5.8B
52%
Public Funds 13%
Demand & NOW 29%
Time >$100k 13%
Time <$100k 20%
MMDA & Sav. 22%
Customer
4Q08 $6.2B
34%
Public Funds 12%
Demand & NOW 21%
Time >$100k 22%
MMDA & Sav.9%
Time <$100k 28%
|
 |
28
Core Deposit Growth – Category and Market
(in millions, excluding public)
Growth
CATEGORY 1Q12 Last 12 Mo
Demand $107.8 $227.6
MM Accounts 88.2 161.6
Savings 15.2 20.5
NOW (60.2) (81.3)
Total Categories $151.0 $328.4
Percent Growth 21 % 12 %
Growth
MARKET 1Q12 Last 12 Mo
Atlanta $62.3 $123.1
North Carolina 30.5 56.8
Coastal Georgia 25.4 31.8
N. Georgia 21.3 75.7
Tennessee 9.3 25.3
Gainesville 2.2 15.7
Total Markets $151.0 $328.4
|
 |
29
Fee Revenue - Core
(in millions)
Variance - Incr / (Decr)
1Q12 4Q11 1Q11
NSF & Overdraft Fees $3,245 $(292) $(265)
Debit Card Fees 3,102 133 572
Other Service Charges 1,436 694 756
Total Service Charges and Fees 7,783 535 1,063
Mortgage Loan & Related Fees 2,099 274 605
Brokerage Fees 813 31 136
Other 2,396 809 935
Total $13,091 $1,649 $2,739
Excludes net securities gains and charges on prepayment of FHLB advances, hedge ineffectiveness gains, gains from the sale of low income housing tax credits, interest on Federal income tax refund and mark to market adjustments on United’s deferred compensation plan assets.
|
 |
30
Operating Expenses - Core
(in thousands)
Variance - Incr / (Decr)
1Q12 4Q11 1Q11
Salaries & Employee Benefits $24,765 $(773) (31)
Communications & Equipment 3,155 26 (189)
Occupancy 3,771 (201) (303)
FDIC Assessment 2,510 (89) (2,903)
Advertising & Public Relations 846 (98) (132)
Postage, Printing & Supplies 979 (38) (139)
Professional Fees 1,975 (21) (355)
Other Expense 4,669 21 78
$42,670 $(1,173) $(3,974)
Excludes foreclosed property costs, adjustment to reclassify pension plan actuarial gains and losses and unamortized prior service costs to other comprehensive income, severance costs and mark to market adjustments on United’s deferred compensation plan liability.
|
 |
31
Net Operating Loss
(in thousands)
1Q12 4Q11 1Q11
Pre-Tax, Pre-Credit (Core) $29,285 $26,649 $22,114
Provision for Loan Loss (15,000) (14,000) (10,000)
Problem Asset Disposition Plan - - (246,219)
Foreclosed Property Costs:
Write-downs (2,111) (3,892) -
Losses on Sales (93) (3,041) -
Maintenance, Taxes, Etc. (1,621) (2,369) (4,294)
Total Foreclosed Property Costs (3,825) (9,302) (4,294)
Hedge Ineffectiveness Gains 115 313 1,303
Securities Gains, Net 557 4 55
Losses from Prepayment of Borrowings (482) - -
Gains from Sale of Low Income Housing Tax Credits 728 728 -
Interest on Federal Income Tax Refund 1,100 - -
Reclassification of Pension Acturial Gains and Losses
and Prior Service Cost to OCI - 2,245 -
Severance (190) - -
Income Tax (Expense) Benefit (760) 3,264 (295)
Net Income (Loss) $11,528 $9,901 $(237,336)
Net Income (Loss) Per Share $ .15 $ .12 $ (13.00)
|
 |
32
Net Income (Loss)
(in thousands)
1Q12 4Q11 1Q11
Net Income (Loss) $11,528 $9,901 $(237,336)
Preferred Stock Dividends (3,030) (3,025) (2,778)
Net Income (Loss) Avail to Common Shareholders $ 8,498 $ 6,876 $ (240,114)
Net Income (Loss) Per Share $.15 $.12 $(13.00)
Tangible Book Value $6.54 $6.47 $1.69
Shares Outstanding (millions) 57.6 57.6 20.9
|
 |
33
Capital Ratios
Well- Capitalized Minimum Guideline MAR ‘12 DEC ‘11 MAR ‘11
Bank
Tier 1 RBC 6% 10% 13.7% 13.6% 12.7%
Total RBC 10 11 15.0 14.9 14.5
Leverage 5 8 9.0 8.8 8.1
Holding Company
Tier 1 RBC 6 10 13.7 13.7 7.4
Total RBC 10 11 15.4 15.4 14.9
Leverage 5 8 8.9 8.8 4.8
Tier I Common RBC 4.5 7 8.3 8.2 .4
Tangible Equity to Assets 8.1 8.2 6.0
|
 |
34 |
 |
35
Experienced Proven Leadership
Joined UCBI Years in Banking
Jimmy Tallent President & CEO 1984 38
Rex Schuette Chief Financial Officer 2001 35
David Shearrow Chief Risk Officer 2007 31
Craig Metz Marketing & Retail Banking 2002 20
Regional Presidents:
Bill Gilbert North & Coastal Georgia 2000 36
Tim Schools North Carolina & Tennessee 2011 12
Glenn White Atlanta 2007 38
|
 |
36
Business and Operating Model
“Community bank service, large bank resources”
Twenty-seven “community banks”
Local CEOs with deep roots in their communities
Resources of $7.2 billion bank
Service is point of differentiation
#1 in Customer Satisfaction according to Customer Service Profiles
J.D. Power Customer Service Champion
Recognized 40 companies in the U.S.
Only bank to be recognized
Golden rule of banking
“The Bank That SERVICE Built”
Ongoing customer surveys
95% satisfaction rate
Strategic footprint with substantial banking opportunities
Operates in a number of the more demographically attractive markets in the U.S.
Disciplined growth strategy
Organic supported by de novos and selective acquisitions
|
 |
37
Robust Demographics (fast growing markets)
Population Growth (%)
Markets1 Population (in thousands) Actual 2000 - 2010 Projected 2010 - 2015
North Georgia 394 23% 7%
Atlanta MSA 5,611 32 10
Gainesville MSA 191 37 13
Coastal Georgia 373 11 5
Western North Carolina 429 12 4
East Tennessee 860 14 6
Total Markets
Georgia 10,014 22 7
North Carolina 9,552 19 8
Tennessee 6,366 12 5
United States 311,213 11 4
¹ Population data is for 2010 and includes those markets where United takes deposits. Source: SNL
|
 |
38
Market Share Opportunities
(excellent growth prospects)
Market Deposits (in billions) (1) United Deposits (2) Banks Offices Deposit Share(1) Rank(1)
North Georgia $6.8 $2.0 11 23 33% 1
Atlanta MSA 45.7 2.1 10 38 4 7
Gainesville MSA 2.5 .3 1 5 14 3
Coastal Georgia 7.0 .4 2 8 6 7
Western North Carolina 7.3 .9 1 21 13 3
East Tennessee 15.9 .3 2 11 2 10
Total Markets $85.2 $6.0 27 106
¹ FDIC deposit market share and rank as of 6/11 for markets where United takes deposits. Source: SNL and FDIC.
2 Based on current quarter.
|
 |
39
Leading Demographics
Rank Ticker Company(1) State Total Assets ($B) 2010 - 2015 Population Growth(2)
1 CFR Cullen/Frost Bankers, Inc. TX 20.3 8.38
2 IBOC International Bancshares Corporation TX 11.7 6.99
3 HBHC Hancock Holding Company MS 19.8 6.38
4 PB Prosperity Bancshares, Inc. TX 9.8 6.21
5 FCNCA First Citizens BancShares, Inc. NC 20.9 6.02
6 GBCI Glacier Bancorp, Inc. MT 7.2 5.63
7 FIBK First Interstate BancSystem, Inc. MT 7.3 5.43
8 TCBI Texas Capital Bancshares, Inc. TX 8.1 5.37
9 FCBN First Citizens Bancorporation, Inc. SC 8.2 4.87
10 UCBI United Community Banks, Inc. GA 7.2 4.85
11 BOKF BOK Financial Corporation OK 25.5 4.77
12 WAL Western Alliance Bancorporation AZ 6.8 4.56
13 IBKC IBERIABANK Corporation LA 11.8 4.42
14 STSA Sterling Financial Corporation WA 9.2 4.18
15 UMPQ Umpqua Holdings Corporation OR 11.6 3.98
NOTE: Financial information as of December 31, 2011
(1) Includes publicly traded companies with assets between $5.0 - $50.0 billion as of December 31, 2011
(2) Population growth weighted by county (cumulative)
Data Source: SNL Financial
|
 |
40
Proactively Addressing Credit Environment
Structure
Centralized underwriting and approval process
Segregated work-out teams
Highly skilled ORE disposition group
Seasoned regional credit professionals
Process
Continuous external loan review
Intensive executive management involvement:
Weekly past due meetings
Weekly NPA/ORE meetings
Quarterly criticized watch loan review meetings
Quarterly pass commercial and CRE portfolio review meetings
Internal loan review of new credit relationships
Policy
Ongoing enhancements to credit policy
Periodic updates to portfolio limits
|
 |
41
Lending – Credit Summary
(in millions)
Legal lending limit $158
House lending limit 20
Project lending limit 12
Top 25 relationships 414
Regional credit review – Standard underwriting
|
 |
42
Performing Classified Loans
(in millions)
LOANS BY CATEGORY 1Q12 4Q11 3Q11 2Q11 1Q11
Commercial (Sec. by RE):
Owner Occupied $78 $79 $69 $72 $75
Income Producing 56 64 65 46 45
Total Comm (Sec. by RE) 134 143 134 118 120
Commercial & Industrial 17 16 25 17 16
Commercial Construction 23 18 26 31 35
Total Commercial 174 177 185 166 171
Residential Mortgage 76 76 77 70 69
Residential Construction 64 72 76 74 81
Consumer / Installment 3 3 3 3 2
Total Classified Loans $317 $328 $341 $313 $323
|
 |
43
Business Mix Loans (at quarter-end)
(in millions)
LOANS BY CATEGORY 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs 1Q11
Commercial (Sec. by RE):
Owner Occupied $ 1,137 $1,111 $1,037 $1,014 $994 $143
Income Producing 706 711 734 728 698 8
Total Comm (Sec. by RE) 1,843 1,822 1,771 1,742 1,692 151
Commercial & Industrial 440 428 429 428 431 9
Commercial Construction 167 164 169 195 213 (46)
Total Commercial 2,450 2,414 2,369 2,365 2,336 114
Residential Mortgage 1,131 1,135 1,150 1,177 1,187 (56)
Residential Construction 436 448 474 502 550 (114)
Consumer / Installment 111 113 117 119 121 (10)
Total Loans $4,128 $4,110 $4,110 $4,163 $4,194 $(66)
|
 |
44
Loans – Markets Served (at quarter-end)
(in millions)
LOANS BY MARKET 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs.1Q11
North Georgia $1,408 $1,426 $1,478 $1,500 $1,531 $(123)
Atlanta MSA 1,239 1,220 1,192 1,188 1,179 60
North Carolina 588 597 607 626 640 (52)
Coastal Georgia 366 346 316 325 312 54
East Tennessee 265 256 245 249 250 15
Gainesville MSA 262 265 272 275 282 (20)
Total Loans $4,128 $4,110 $4,110 $4,163 $4,194 $(66)
|
 |
45
Residential Construction – North Georgia
(in millions)
1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs.1Q11
Land Loans
Developing Land $44 $44 $51 $58 $62 $(18)
Raw Land 26 26 25 25 27 (1)
Lot Loans 112 118 124 129 131 (19)
Total 182 188 200 212 220 (38)
Construction Loans
Spec 12 12 15 18 25 (13)
Sold 11 14 14 19 21 (10)
Total 23 26 29 37 46 (23)
Total Res Construction $205 $214 $229 $249 $266 $(61)
|
 |
46
Residential Construction – Atlanta MSA
(in millions)
1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs. 1Q11
Land Loans
Developing Land $17 $17 $19 $20 $22 $(5)
Raw Land 13 14 15 16 19 (6)
Lot Loans 22 22 22 22 24 (2)
Total 52 53 56 58 65 (13)
Construction Loans
Spec 27 27 28 30 34 (7)
Sold 7 6 8 9 11 (4)
Total 34 33 36 39 45 (11)
Total Res Construction $86 $86 $92 $97 $110 $(24)
|
 |
47
Business Mix Loans (at year-end)
(in millions)
2011 2010 2009 2008 2007
LOANS BY CATEGORY
Commercial (Sec. by RE) $1,822 $1,761 $1,779 $1,627 $1,476
Commercial & Industrial 428 441 390 410 418
Commercial Construction 164 297 363 500 527
Total Commercial 2,414 2,499 2,532 2,537 2,421
Residential Mortgage 1,135 1,279 1,427 1,526 1,502
Residential Construction 448 695 1,050 1,479 1,829
Consumer / Installment 113 131 142 163 177
Total Loans $4,110 $4,604 $5,151 $5,705 $5,929
|
 |
48
Loans – Markets Served (at year-end)
(in millions)
LOANS BY MARKET 2011 2010 2009 2008 2007
North Georgia $1,426 $1,689 $1,884 $2,040 $2,060
Atlanta MSA 1,220 1,310 1,435 1,706 2,002
North Carolina 597 702 772 810 806
Coastal Georgia 346 335 405 464 416
Gainesville MSA 265 312 390 420 399
East Tennessee 256 256 265 265 246
Total Loans $4,110 $4,604 $5,151 $5,705 $5,929
|
 |
49
NPAs by Loan Category, Market, and Activity
Credit Quality (1)
First Quarter 2012 Fourth Quarter 2011 Third Quarter 2011
(in thousands) Non-performing Loans Foreclosed Properties Total NPAs Non-performing Loans Foreclosed Properties Total NPAs Non-performing Loans Foreclosed Properties Total NPAs
NPAs BY CATEGORY
Commercial (sec.by RE) $26,081 $10,808 $36,889 $27,322 $9,745 $37,067 $21,998 $8,880 $30,878
Commercial & industrial 36,314 - 36,314 34,613 - 34,613 53,009 - 53,009
Commercial construction 23,319 3,266 26,585 16,655 3,336 19,991 11,370 5,862 17,232
Total commercial 85,714 14,074 99,788 78,590 13,081 91,671 86,377 14,742 101,119
Residential mortgage 18,741 5,882 24,623 22,358 6,927 29,285 22,671 7,960 30,631
Residential construction 24,341 11,931 36,272 25,523 12,851 38,374 34,472 21,561 56,033
Consumer installment 908 - 908 1,008 - 1,008 964 - 964
Total NPAs $129,704 $31,887 $161,591 $127,479 $32,859 $160,338 $144,484 $44,263 $188,747
Balance as a % of Unpaid Principal 70.6% 36.1% 59.4% 71.3% 35.9% 59.3% 77.8% 33.4% 59.3%
NPAs BY MARKET
North Georgia $81,117 $14,559 $95,676 $88,600 $15,136 $103,736 $105,078 $17,467 $122,545
Atlanta MSA 22,321 7,647 29,968 14,480 6,169 20,649 13,350 12,971 26,321
North Carolina 15,765 4,650 20,415 15,100 5,365 20,465 13,243 7,941 21,184
Coastal Georgia 5,622 1,268 6,890 5,248 1,620 6,868 5,600 2,354 7,954
Gainesville MSA 2,210 3,387 5,597 2,069 3,760 5,829 5,311 2,495 7,806
East Tennessee 2,669 376 3,045 1,982 809 2,791 1,902 1,035 2,937
Total NPAs $129,704 $31,887 $161,591 $127,479 $32,859 $160,338 $144,484 $44,263 $188,747
NPA ACTIVITY
Beginning Balance $127,479 $32,859 $160,338 $144,484 $44,263 $188,747 $71,065 $47,584 $118,649
Loans placed on non-accrual 32,437 - 32,437 45,675 - 45,675 103,365 - 103,365
Payments received (5,945) - (5,945) (1,884) - (1,884) (3,995) - (3,995)
Loan charge-offs (14,733) - (14,733) (44,757) - (44,757) (15,335) - (15,335)
Foreclosures (9,534) 9,534 - (16,039) 16,039 - (10,616) 10,616 -
Capitalized costs - 329 329 - 141 141 - 818 818
Note / property sales - (8,631) (8,631) - (20,651) (20,651) - (13,787) (13,787)
Write downs - (2,111) (2,111) - (3,893) (3,893) - (1,772) (1,772)
Net gains (losses) on sales - (93) (93) - (3,040) (3,040) - 804 804
Ending Balance $129,704 $31,887 $161,591 $127,479 $32,859 $160,338 $144,484 $44,263 $188,747
(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.
|
 |
50
Net Charge-offs by Category and Market
Credit Quality (1)
First Quarter 2012 Fourth Quarter 2011 Third Quarter 2011
(in thousands) Net Charge-Offs Net Charge- Offs to Average Loans (2) Net Charge-Offs Net Charge- Offs to Average Loans (2) Net Charge-Offs Net Charge- Offs to Average Loans (2)NET CHARGE-OFFS BY CATEGORY
Commercial (sec.by RE) $3,697 .81% $4,962 1.09% $2,192 .50%
Commercial & industrial 669 .62 18,940 17.47 420 .39
Commercial construction 334 .81 3,318 7.88 1,625 3.54
Total commercial 4,700 .78 27,220 4.51 4,237 .71
Residential mortgage 5,375 1.91 5,887 2.04 6,110 2.09
Residential construction 5,314 4.84 12,090 10.36 6,381 5.19
Consumer installment 478 1.72 427 1.47 818 2.75
Total $15,867 1.55 $45,624 4.39 $17,546 1.68
NET CHARGE-OFFS BY MARKET
North Georgia $9,022 2.56% $34,970 9.46% $8,124 2.16%
Atlanta MSA 2,729 .89 4,195 1.37 2,813 .94
North Carolina 1,679 1.14 3,180 2.10 3,608 2.31
Coastal Georgia 1,329 1.53 335 .41 709 .88
Gainesville MSA 883 1.35 2,572 3.84 1,804 2.64
East Tennessee 225 .34 372 .59 488 .78
Total $15,867 1.55 $45,624 4.39 $17,546 1.68
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
|
 |
51
Net Charge-offs by Category and Market
Asset Disposition Plan as of March 31, 2011
Credit Quality - Net Charge-Offs First Quarter 2011 (1)
Asset Disposition Plan
Bulk Loan Sale (2)
(in thousands) Performing Loans Nonperforming Loans Other Bulk Loan Sales (3) Foreclosure Charge-Offs (4) Other Net Charge-Offs First Quarter 2011 Net Charge- Offs
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE) $29,451 $11,091 $3,318 $1,905 $2,842 $48,607
Commercial construction 32,530 15,328 292 419 1,146 49,715
Commercial & industrial 365 2,303 859 - 513 4,040
Total commercial 62,346 28,722 4,469 2,324 4,501 102,362
Residential construction 43,018 23,459 3,325 11,693 10,643 92,138
Residential mortgage 13,917 14,263 1,676 1,538 4,989 36,383
Consumer / installment 86 168 30 24 383 691
Total $119,367 $66,612 $9,500 $15,579 $20,516 $231,574
NET CHARGE-OFFS BY MARKET
Atlanta MSA $37,186 $8,545 $1,428 $6,034 $3,296 $56,489
Gainesville MSA 3,563 2,442 957 700 954 8,616
North Georgia 57,969 47,699 2,508 6,585 8,544 123,305
Western North Carolina 11,138 4,743 2,415 1,402 6,749 26,447
Coastal Georgia 6,835 2,180 2,013 634 341 12,003
East Tennessee 2,676 1,003 179 224 632 4,714
Total $119,367 $66,612 $9,500 $15,579 $20,516 $231,574
(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) Charge-offs totaling $186 million were recognized on the bulk loan sale in the first quarter of 2011. The loans were transferred to the loans held for sale category in anticipation of the second quarter bulk loan sale that was completed on April 18, 2011.
(3) Losses on smaller bulk sale transactions completed during the first quarter of 2011.
(4) Loan charge-offs recognized in the first quarter of 2011 related to loans transferred to foreclosed properties. Such charge-offs were elevated in the first quarter as a result of the asset disposition plan, which called for aggressive write downs to expedite sales in the second and third quarters of 2011.
|
 |
52
Credit Quality – Bulk Loan Sale Summary
as of March 31, 2011
Credit Quality - Bulk Loan Sale Summary (1)
Performing Loans Nonperforming Loans Total Loans
(in thousands) Carrying Amount (2) Charge- Offs (3) Loans Held for Sale (4) Carrying Amount (2) Charge- Offs (3) Loans Held for Sale (4) Carrying Amount (2) Charge- Offs (3) Loans Held for Sale (4)
BY CATEGORY
Commercial (sec. by RE) $40,902 $29,451 $11,451 $17,202 $11,090 $6,112 $58,104 $40,541 $17,563
Commercial construction 45,490 32,530 12,960 22,440 15,328 7,112 67,930 47,858 20,072
Commercial & industrial 504 365 139 3,397 2,302 1,095 3,901 2,667 1,234
Total commercial 86,896 62,346 24,550 43,039 28,720 14,319 129,935 91,066 38,869
Residential construction 59,747 43,018 16,729 35,508 23,459 12,049 95,255 66,477 28,778
Residential mortgage 19,342 13,917 5,425 21,716 14,262 7,454 41,058 28,179 12,879
Consumer / installment 120 86 34 238 169 69 358 255 103
Total $166,105 $119,367 $46,738 $100,501 $66,610 $33,891 $266,606 $185,977 $80,629
BY MARKET
Atlanta MSA $51,647 $37,186 $14,461 $13,755 $8,545 $5,210 $65,402 $45,731 $19,671
Gainesville MSA 4,949 3,563 1,386 3,695 2,442 1,253 8,644 6,005 2,639
North Georgia 80,831 57,969 22,862 70,900 47,698 23,202 151,731 105,667 46,064
Western North Carolina 15,468 11,138 4,330 7,228 4,743 2,485 22,696 15,881 6,815
Coastal Georgia 9,493 6,835 2,658 3,527 2,179 1,348 13,020 9,014 4,006
East Tennessee 3,717 2,676 1,041 1,396 1,003 393 5,113 3,679 1,434
Total $166,105 $119,367 $46,738 $100,501 $66,610 $33,891 $266,606 $185,977 $80,629
(1) This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed on April 18, 2011.
(2) This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale.
(3) This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date through March 31, 2011 that are part of the settlement.
(4) This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale.
|
 |
53
Loans / Deposits – Liquidity
(in millions)
Variance
1Q12 4Q11 1Q11 vs 4Q11 vs 1Q11
Loans $4,128 $4,110 $4,194 $18 $(66)
Core (DDA, MMDA, Savings) $3,053 $2,902 $2,725 $151 $328
Public Funds 820 884 672 (64) 148
CD’s 1,960 2,133 2,516 (173) (556)
Total Deposits (excl Brokered) $5,833 $5,919 $5,913 $(86) $(80)
Loan to Deposit Ratio 71% 69% 71%
Investment Securities:
Available for Sale $1,359 $1,217 $1,187 $142 $172
Held to Maturity 304 330 245 (26) 59
Total Investment Securities 1,663 1,547 1,432 116 231
Floating Rate CMD, Bonds 540 573 451 (33) 89
Total Securities Portfolio 2,203 2,120 1,883 83 320
Percent of Assets (Excludes Floating) 23% 22% 19%
Commercial Paper & Reverse Repo $235 $185 $470 $50 $(235)
Floating Rate Securities 540 573 451 (33) 89
Excess Reserves 103 103 530 - (427)
Total Excess Liquidity $878 $861 $1,451 $17 $(573)
|
 |
54
Wholesale Borrowings - Liquidity
(in millions)
Variance
Unused Capacity 1Q12 4Q11 1Q11 vs 4Q11 vs 1Q11
Wholesale Borrowings
Brokered Deposits $1,625 (1) $168 $179 $685 $(11) $(517)
FHLB 715 215 41 55 174 160
Fed Funds 50 - - - - -
Other Wholesale 468 102 103 102 (1) -
Total $2,858 $485 $323 $842 $162 $(357)
Long-Term Debt
Sub-Debt $65 $65 $95 $- $(30)
Trust Preferred Securities 55 55 55 - -
Total Long-Term Debt $120 $120 $150 $- $(30)
(1) Estimated Brokered Deposit Capacity at 25% of Assets
|
 |
55
Business Mix – Deposits (at quarter-end)
(in millions)
DEPOSITS BY CATEGORY 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 vs. 1Q11
Demand & Now $1,722 $1,674 $1,686 $1,620 $1,576 $146
MMDA & Savings 1,331 1,228 1,220 1,174 1,149 182
Core Transaction Deposits 3,053 2,902 2,906 2,794 2,725 328
Time < $100,000 1,201 1,326 1,387 1,503 1,570 (369)
Public Deposits 782 844 597 605 628 154
Total Core Deposits 5,036 5,072 4,890 4,902 4,923 113
Time > $100,000 759 807 867 936 946 (187)
Public Deposits 38 40 38 44 44 (6)
Total Customer Deposits 5,833 5,919 5,795 5,882 5,913 (80)
Brokered Deposits 168 179 210 301 685 (517)
Total Deposits $6,001 $6,098 $6,005 $6,183 $6,598 $(597)
|
 |
56
Core Transaction Deposits
Geographic Diversity
1Q 11 1Q 12
$ in millions
Eastern Tennessee Gainesville MSA Coastal Georgia North Carolina
North Georgia
Atlanta MSA
Core Transactions / Total Deposits (%)
1Q12 1Q11
Atlanta MSA 55.0% 49.8%
North Georgia 46.2 40.7
North Carolina 55.5 48.3
Gainesville MSA 58.4 50.7
Coastal GA 51.4 42.6
East TN 55.6 46.5
Total 52.3% 46.1%
|
 |
57
Non-GAAP Reconciliation Tables
(in thousands except EPS)
Operating Earnings to GAAP Earnings Reconciliation
1Q12 4Q11 1Q11
Core net interest revenue reconciliation
Core net interest revenue $58,864 $59,050 $58,406
Interest reversed on performing lonas included in Bulk Loan Sale $- $- $(2,014)
Taxable equivalent adjustment (446) (423) (435)
Net interest revenue (GAAP) $58,418 $58,627 $55,957
Provision for loan losses reconciliation
Core provision for loan losses 15,000 14,000 10,000
Provision for loan losses associated with Bulk Loan Sale - - 180,000
Provision for loan losses (GAAP) $15,000 $14,000 $190,000
Core fee revenue reconciliation
Core fee revenue $13,091 $11,442 $10,352
Securities gains, net 557 4 55
Loss on prepayment of borrowings (482) - -
Gains from sales of low income housing tax credits 728 728 -
Hedge ineffectiveness gains 115 313 1,303
Interest on Federal tax refund 1,100 - -
Mark to market on deferred compensation plan assets 270 180 128
Fee revenue (GAAP) $15,379 $12,667 $11,838
Core operating expense reconciliation
Core operating expense $42,670 $43,843 $46,644
Foreclosed property expense 3,825 9,302 64,899
Severance 190 - -
Mark to market on deferred compensation plan liability 270 180 128
Professional fees incurred in connection with Bulk Loan Sale - - 1,000
Property taxes paid on collateral for loans in Bulk Loan Sale - - 2,600
Reclassification of pension plan acturial gains and losses and
unamortized prior service costs to other comprehensive income - (2,245) -
Operating expense (GAAP) $46,955 $51,080 $115,271
|
 |
58
Non-GAAP Reconciliation Tables
Operating Earnings to GAAP Earnings Reconciliation
1Q12 4Q11 1Q11
Net interest margin - pre credit reconciliation
Net interest margin - pre credit 3.76% 3.77% 3.84%
Effect of interest reversals, lost interest, and carry costs of NPAs (.23) (.26) (.43)
Net interest margin 3.53 3.51 3.41
Tangible common equity and tangible equity to tangible assets reconciliation
Tangible common equity to tangible assets 5.33% 5.38% 2.70%
Effect of preferred equity 2.75 2.78 3.31
Tangible equity to tangible assets 8.08 8.16 6.01
Effect of goodwill and other intangibles .11 .12 .14
Equity to assets (GAAP) 8.19% 8.28% 6.15%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets 8.21% 8.25% .75%
Effect of preferred equity 4.23 4.29 5.87
Tangible equity to risk weighted assets 12.44 12.54 6.62
Effect of other comprehensive income .10 (.03) (.32)
Effect of trust preferred 1.15 1.18 1.13
Tier I capital ratio (Regulatory) 13.69% 13.69% 7.43%
|
 |
59
Analyst Coverage
FIG Partners
(Market Perform - Mar 22, 2012)
Guggenheim Securities, LLC
(Neutral - Jan 27, 2012)
Keefe, Bruyette & Woods
(Market Perform - Jan 26, 2012)
Macquarie Capital (USA)
(Neutral - Jan 25, 2012)
Raymond James & Assoc.
(Market Perform - Jan 27, 2012)
Sandler O’Neill & Partners
(Hold, Apr 4, 2012)
Stephens, Inc.
(Equal Weight - Jan 27, 2012)
SunTrust Robinson Humphrey
(Neutral - Jan 26, 2012)
|
 |
60
United Community Banks, Inc.
Investor Presentation
First Quarter 2012
Copyright 2012
United Community Banks, Inc.
All rights reserved.
|