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):
January 24, 2013
United Community Banks, Inc.
(Exact name of registrant as specified in its charter)
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Georgia
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No. 001-35095
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No. 58-180-7304
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(State or other jurisdiction of
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(Commission File Number)
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(IRS Employer
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incorporation)
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Identification No.)
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125 Highway 515 East
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:
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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On January 24, 2013, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended December 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 is incorporated herein by reference. In connection with issuing the News Release, on January 24, 2013 at 11:00 a.m. EDT, 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 December 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 is incorporated herein by reference.
The presentation of the Registrant’s financial results includes 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 core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses 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 measures 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.
Core earnings measures should be viewed in addition to, and not as an alternative to 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.
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Item 9.01
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Financial Statements and Exhibits.
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| (d) | Exhibits | |
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Exhibit
No.
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Description
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99.1
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Press Release, dated January 24, 2013
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| 99.2 | Investor Presentation, Fourth 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. | |||
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By:
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/s/ Rex S. Schuette | |
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Rex S. Schuette
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Executive Vice President and
Chief Financial Officer
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| Date: January 24, 2013 | |||
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 $9.3 MILLION FOR FOURTH QUARTER 2012
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●
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Net income of $9.3 million, or 11 cents per share
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Loans up $37.2 million from third quarter, or 4 percent annualized
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Core transaction deposits up $75.2 million in fourth quarter, or 10 percent annualized
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Solid improvement in credit quality
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BLAIRSVILLE, GA – January 24, 2013 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $9.3 million, or 11 cents per share, for the fourth quarter of 2012, and net income of $37.9 million, or 44 cents per share, for the year. The results for the fourth quarter and year reflect modest loan growth, improved credit quality, strong core transaction deposit growth, an increase in fee revenue, and lower operating expenses compared with the same periods a year ago.
“We had another positive quarter and a very productive year in rebuilding our core earnings and positioning United for future growth,” said Jimmy Tallent, president and chief executive officer. “In the fourth quarter we achieved meaningful improvement in every key measure of credit quality, and we continued to build strong momentum in growing new customer loan and deposit relationships.”
Tallent continued, “We grew our loan portfolio by $37 million from the third quarter, for an annualized rate of 4 percent. That was no easy accomplishment in the current business environment. Additionally, our core transaction deposits increased by $75 million, or 10 percent annualized. At the same time we lowered nonperforming assets by 10 percent, to $128 million. This total includes our lowest level of foreclosed properties since 2007, at $18 million. Even more encouraging was the significant drop in net charge-offs to $14.5 million, the lowest level since the second quarter of 2008.”
1
“This was a good way to end a successful year,” Tallent stated. “During 2012, we achieved $65 million in net new loan growth and we increased core transaction deposits by $311 million or 11 percent. Continued growth in quality loan and deposit relationships remains a top priority.”
The fourth quarter provision for loan losses was $14 million, equal to a year ago and down $1.5 million from the third quarter. Fourth quarter net charge-offs were $14.5 million compared to $20.6 million in the third quarter and $45.6 million in the fourth quarter of 2011.
“The inflow of nonperforming loans in the fourth quarter was $20 million, the lowest quarterly total since the beginning of the economic cycle,” Tallent said. “We expect this trend will lead to lower quarterly charge-offs and loan loss provisions during 2013.”
Taxable equivalent net interest revenue totaled $56.0 million, down $1.34 million from the third quarter of 2012 and down $3.02 million from the fourth quarter of 2011. “The decrease primarily reflects lower yields on our investment securities and loan portfolios, as well as the overlap of new senior debt issued at the beginning of the fourth quarter that was used to repay subordinated debt that matured late in the fourth quarter,” said Tallent.
“The lower yield on our loan portfolio reflects ongoing pricing pressure on new and renewed loans,” Tallent continued. “Our investment securities interest decline was due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities with a focus on floating-rate securities to alleviate market and duration risk. Floating-rate securities, which account for 38 percent of the total investment securities portfolio, improve our interest sensitivity position by reducing our exposure to rising interest rates,” Tallent continued.
2
The taxable equivalent net interest margin was down 16 basis points from the third quarter and 7 basis points from a year ago to 3.44 percent. “Five of the 16 basis point linked-quarter margin decline was due to the overlap in the replacement of maturing subordinated debt,” stated Tallent. “Another five basis points was due to the scheduled repricing of certain corporate bonds from a fixed to floating rate. These floating rate securities were part of a planned strategy to maintain a neutral to slightly asset-sensitive interest rate position. The balance of the decrease was due to a new loan product offering with a low introductory rate that will reprice in 2013 and continued loan pricing pressures.”
Fee revenue was $14.8 million for the fourth quarter, compared to $13.8 million for the third quarter and $12.7 million a year ago. The increase from prior quarters was primarily due to the higher level of mortgage loans closed and related fees. Mortgage refinancing activity continued at a strong pace through the fourth quarter as mortgage rates remained at record low levels. Closed mortgage loans totaled $100 million in the fourth quarter compared with $108 million in the third quarter and $78.8 million in the fourth quarter of 2011. Service charges and fees on deposit accounts were also up from a year ago due to new fees on low balance deposit accounts that became effective in the first quarter of 2012, and to higher debit card interchange fees.
Other fee revenue was down $217,000 from the third quarter of 2012 and $466,000 from the fourth quarter of 2011 to $2.34 million. The decrease was primarily due to lower hedge ineffectiveness gains and to a fourth quarter 2011 gain of $728,000 from the sale of state low-income housing tax credits.
Operating expenses, excluding foreclosed property costs, were $42.1 million for the fourth quarter of 2012 compared to $41.1 million for the third quarter and $41.8 million a year ago. The increase from a year ago was due primarily to a $2.24 million, one-time credit adjustment in the fourth quarter of 2011 related to our retirement plan that reduced salary and employee benefit expense in that period. Excluding the foreclosed property costs and the one-time credit adjustment, quarterly operating expenses were down $1.9 million from a year ago. Reduced staff levels and related costs were the primary drivers of the decrease. United had 164 fewer staff positions in the fourth quarter of 2012 compared to the fourth quarter of 2011.
3
Foreclosed property costs for the fourth quarter of 2012 were $4.6 million, compared to $3.7 million in the third quarter and $9.3 million a year ago. Fourth quarter 2012 costs included $1.4 million for maintenance and $3.2 million in net losses and write-downs. For the third quarter of 2012, foreclosed property costs included $962,000 in maintenance and $2.7 million in net losses and write-downs. Fourth quarter 2011 foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs.
As of December 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Tier 1 Leverage of 9.7 percent; Total Risk-Based of 15.8 percent; Tier 1 Common Risk-Based of 8.9 percent; and, Tangible Equity-to-Assets of 8.6 percent.
“By every measure, 2012 has been a year of significant improvement for United Community Banks,” Tallent said. “Reflecting on all that this banking team has accomplished in restoring credit quality, regaining momentum in new business growth, and improving operating efficiency, I cannot help but look forward with excitement.
“We know that challenges remain as the economy continues to be sluggish and rates are at record lows,” Tallent continued. “At the same time we expect credit measures to continue to improve, and this will translate into lower levels of charge-offs and provisioning. We see opportunities to grow our mortgage and advisory services businesses, and will look to expand both. We believe we can grow our loan portfolio and we will accomplish this by continuing to add lenders in key markets, as well as expanding into new markets, like Greenville, South Carolina, where we recently opened a loan production office.”
Tallent concluded, “We constantly evaluate and find ways to improve this company – to make it more productive and efficient while continuing to deliver the best customer service in the industry. Ultimately we are committed to delivering superior financial results on behalf of our shareholders. We are committed, we are up to the challenge, and we look ahead with determination and optimism.”
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Conference Call
United will hold a conference call today, Thursday, January 24, 2013, 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 86024021. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of 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 $6.8 billion and operates 105 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and northwest South Carolina. 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 website 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 sections 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.
# # #
5
UNITED COMMUNITY BANKS, INC.
Financial Highlights
| Selected Financial Information | ||||||||||||||||||||||||||||||||||||
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Fourth
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2012
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2011
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Quarter
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For the Twelve
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YTD
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(in thousands, except per share
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Fourth
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Third
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Second
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First
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Fourth
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2012-2011 |
Months Ended
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2012-2011 | ||||||||||||||||||||||||||||
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data; taxable equivalent)
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Quarter
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Quarter
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Quarter
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Quarter
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Quarter
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Change
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2012 | 2011 |
Change
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INCOME SUMMARY
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Interest revenue
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$ | 64,450 | $ | 65,978 | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 267,429 | $ | 299,344 | ||||||||||||||||||||||
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Interest expense
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8,422 | 8,607 | 9,944 | 11,357 | 12,855 | 38,330 | 65,675 | |||||||||||||||||||||||||||||
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Net interest revenue
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56,028 | 57,371 | 56,836 | 58,864 | 59,050 | (5 | ) % | 229,099 | 233,669 | (2 | ) % | |||||||||||||||||||||||||
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Provision for loan losses
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14,000 | 15,500 | 18,000 | 15,000 | 14,000 | 62,500 | 251,000 | |||||||||||||||||||||||||||||
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Fee revenue
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14,761 | 13,764 | 12,867 | 15,379 | 12,667 | 17 | 56,771 | 49,908 | 14 | |||||||||||||||||||||||||||
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Total revenue
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56,789 | 55,635 | 51,703 | 59,243 | 57,717 | 223,370 | 32,577 | |||||||||||||||||||||||||||||
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Operating expenses
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46,726 | 44,783 | 44,310 | 46,955 | 51,080 | (9 | ) | 182,774 | 261,599 | (30 | ) | |||||||||||||||||||||||||
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Income (loss) before income taxes
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10,063 | 10,852 | 7,393 | 12,288 | 6,637 | 52 | 40,596 | (229,022 | ) | |||||||||||||||||||||||||||
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Income tax expense (benefit)
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802 | 284 | 894 | 760 | (3,264 | ) | 2,740 | (2,276 | ) | |||||||||||||||||||||||||||
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Net income (loss)
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9,261 | 10,568 | 6,499 | 11,528 | 9,901 | (6 | ) | 37,856 | (226,746 | ) | ||||||||||||||||||||||||||
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Preferred dividends and discount accretion
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3,045 | 3,041 | 3,032 | 3,030 | 3,025 | 12,148 | 11,838 | |||||||||||||||||||||||||||||
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Net income (loss) available to common shareholders
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$ | 6,216 | $ | 7,527 | $ | 3,467 | $ | 8,498 | $ | 6,876 | (10 | ) | $ | 25,708 | $ | (238,584 | ) | |||||||||||||||||||
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PERFORMANCE MEASURES
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Per common share:
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Diluted income (loss)
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$ | .11 | $ | .13 | $ | .06 | $ | .15 | $ | .12 | (8 | ) | $ | .44 | $ | (5.97 | ) | |||||||||||||||||||
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Book value
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6.74 | 6.75 | 6.61 | 6.68 | 6.62 | 2 | 6.74 | 6.62 | 2 | |||||||||||||||||||||||||||
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Tangible book value (2)
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6.64 | 6.64 | 6.48 | 6.54 | 6.47 | 3 | 6.64 | 6.47 | 3 | |||||||||||||||||||||||||||
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Key performance ratios:
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| Return on equity (1)(3) | 6.03 | % | 7.43 | % | 3.51 | % | 8.78 | % | 7.40 |
%
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6.43 | % | (93.57 | )% |
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Return on assets (3)
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.54 | .63 | .37 | .66 | .56 | .55 | (3.15 | ) | ||||||||||||||||||||||||||||
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Net interest margin (3)
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3.44 | 3.60 | 3.43 | 3.53 | 3.51 | 3.50 | 3.44 | |||||||||||||||||||||||||||||
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Efficiency ratio
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66.04 | 62.95 | 63.84 | 63.31 | 71.23 | 64.02 | 92.27 | |||||||||||||||||||||||||||||
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Equity to assets
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8.63 | 8.75 | 8.33 | 8.19 | 8.28 | 8.47 | 7.75 | |||||||||||||||||||||||||||||
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Tangible equity to assets (2)
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8.55 | 8.66 | 8.24 | 8.08 | 8.16 | 8.38 | 7.62 | |||||||||||||||||||||||||||||
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Tangible common equity to assets (2)
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5.67 | 5.73 | 5.45 | 5.33 | 5.38 | 5.54 | 3.74 | |||||||||||||||||||||||||||||
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Tangible common equity to risk-
weighted assets (2)
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8.33 | 8.44 | 8.37 | 8.21 | 8.25 | 8.33 | 8.25 | |||||||||||||||||||||||||||||
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ASSET QUALITY *
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Non-performing loans
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$ | 109,894 | $ | 115,001 | $ | 115,340 | $ | 129,704 | $ | 127,479 | $ | 109,894 | $ | 127,479 | ||||||||||||||||||||||
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Foreclosed properties
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18,264 | 26,958 | 30,421 | 31,887 | 32,859 | 18,264 | 32,859 | |||||||||||||||||||||||||||||
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Total non-performing assets (NPAs)
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128,158 | 141,959 | 145,761 | 161,591 | 160,338 | 128,158 | 160,338 | |||||||||||||||||||||||||||||
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Allowance for loan losses
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107,137 | 107,642 | 112,705 | 113,601 | 114,468 | 107,137 | 114,468 | |||||||||||||||||||||||||||||
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Net charge-offs
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14,505 | 20,563 | 18,896 | 15,867 | 45,624 | 69,831 | 311,227 | |||||||||||||||||||||||||||||
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Allowance for loan losses to loans
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2.57 | % | 2.60 | % | 2.74 | % | 2.75 | % | 2.79 | % | 2.57 | % | 2.79 | % | ||||||||||||||||||||||
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Net charge-offs to average loans (3)
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1.39 | 1.99 | 1.85 | 1.55 | 4.39 | 1.69 | 7.33 | |||||||||||||||||||||||||||||
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NPAs to loans and foreclosed properties
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3.06 | 3.41 | 3.51 | 3.88 | 3.87 | 3.06 | 3.87 | |||||||||||||||||||||||||||||
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NPAs to total assets
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1.88 | 2.12 | 2.16 | 2.25 | 2.30 | 1.88 | 2.30 | |||||||||||||||||||||||||||||
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AVERAGE BALANCES ($ in millions)
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Loans
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$ | 4,191 | $ | 4,147 | $ | 4,156 | $ | 4,168 | $ | 4,175 | - | $ | 4,166 | $ | 4,307 | (3 | ) | |||||||||||||||||||
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Investment securities
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2,088 | 1,971 | 2,145 | 2,153 | 2,141 | (2 | ) | 2,089 | 1,999 | 5 | ||||||||||||||||||||||||||
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Earning assets
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6,482 | 6,346 | 6,665 | 6,700 | 6,688 | (3 | ) | 6,547 | 6,785 | (4 | ) | |||||||||||||||||||||||||
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Total assets
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6,778 | 6,648 | 6,993 | 7,045 | 7,019 | (3 | ) | 6,865 | 7,189 | (5 | ) | |||||||||||||||||||||||||
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Deposits
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5,873 | 5,789 | 5,853 | 6,028 | 6,115 | (4 | ) | 5,885 | 6,275 | (6 | ) | |||||||||||||||||||||||||
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Shareholders’ equity
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585 | 582 | 583 | 577 | 581 | 1 | 582 | 557 | 4 | |||||||||||||||||||||||||||
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Common shares - basic (thousands)
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57,971 | 57,880 | 57,840 | 57,764 | 57,646 | 57,857 | 39,943 | |||||||||||||||||||||||||||||
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Common shares - diluted (thousands)
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57,971 | 57,880 | 57,840 | 57,764 | 57,646 | 57,857 | 39,943 | |||||||||||||||||||||||||||||
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AT PERIOD END ($ in millions)
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Loans *
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$ | 4,175 | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | 2 | $ | 4,175 | $ | 4,110 | 2 | ||||||||||||||||||||
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Investment securities
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2,079 | 2,025 | 1,984 | 2,202 | 2,120 | (2 | ) | 2,079 | 2,120 | (2 | ) | |||||||||||||||||||||||||
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Total assets
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6,802 | 6,699 | 6,737 | 7,174 | 6,983 | (3 | ) | 6,802 | 6,983 | (3 | ) | |||||||||||||||||||||||||
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Deposits
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5,952 | 5,823 | 5,822 | 6,001 | 6,098 | (2 | ) | 5,952 | 6,098 | (2 | ) | |||||||||||||||||||||||||
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Shareholders’ equity
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585 | 585 | 576 | 580 | 575 | 2 | 585 | 575 | 2 | |||||||||||||||||||||||||||
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Common shares outstanding (thousands)
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57,741 | 57,710 | 57,641 | 57,603 | 57,561 | 57,741 | 57,561 | |||||||||||||||||||||||||||||
| (1) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3)Annualized. | |
| * | Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC. |
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
| For the Years Ended December 31, | ||||||||||||||||||||
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(in thousands, except per share data;
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taxable equivalent)
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2012
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2011
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2010
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2009
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2008
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INCOME SUMMARY
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Net interest revenue
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$ | 229,099 | $ | 233,669 | $ | 243,052 | $ | 245,227 | $ | 238,704 | ||||||||||
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Operating provision for loan losses (1)
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62,500 | 251,000 | 234,750 | 310,000 | 184,000 | |||||||||||||||
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Operating fee revenue (2)
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56,771 | 49,908 | 48,548 | 50,964 | 46,081 | |||||||||||||||
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Total operating revenue (1)(2)
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223,370 | 32,577 | 56,850 | (13,809 | ) | 100,785 | ||||||||||||||
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Operating expenses (3)
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182,774 | 261,599 | 242,952 | 217,050 | 200,335 | |||||||||||||||
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Loss on sale of nonperforming assets
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- | - | 45,349 | - | - | |||||||||||||||
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Operating income (loss) from continuing operations before taxes
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40,596 | (229,022 | ) | (231,451 | ) | (230,859 | ) | (99,550 | ) | |||||||||||
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Operating income taxes
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2,740 | (2,276 | ) | 73,218 | (91,754 | ) | (35,651 | ) | ||||||||||||
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Net operating income (loss) from continuing operations
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37,856 | (226,746 | ) | (304,669 | ) | (139,105 | ) | (63,899 | ) | |||||||||||
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Gain from acquisition, net of tax
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- | - | - | 7,062 | - | |||||||||||||||
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Noncash goodwill impairment charges
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- | - | (210,590 | ) | (95,000 | ) | - | |||||||||||||
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Severance cost, net of tax benefit
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- | - | - | (1,797 | ) | - | ||||||||||||||
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Fraud loss provision and subsequent recovery, net of tax benefit
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- | - | 11,750 | - | - | |||||||||||||||
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Net income (loss) from discontinued operations
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- | - | (101 | ) | 513 | 449 | ||||||||||||||
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Gain from sale of subsidiary, net of income taxes and selling costs
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- | - | 1,266 | - | - | |||||||||||||||
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Net income (loss)
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37,856 | (226,746 | ) | (502,344 | ) | (228,327 | ) | (63,450 | ) | |||||||||||
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Preferred dividends and discount accretion
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12,148 | 11,838 | 10,316 | 10,242 | 724 | |||||||||||||||
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Net income (loss) available to common shareholders
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$ | 25,708 | $ | (238,584 | ) | $ | (512,660 | ) | $ | (238,569 | ) | $ | (64,174 | ) | ||||||
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PERFORMANCE MEASURES
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Per common share:
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Diluted operating earnings (loss) from continuing operations (1)(2)(3)
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$ | .44 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | $ | (6.82 | ) | ||||||
|
Diluted earnings (loss) from continuing operations
|
.44 | (5.97 | ) | (27.15 | ) | (19.80 | ) | (6.82 | ) | |||||||||||
|
Diluted earnings (loss)
|
.44 | (5.97 | ) | (27.09 | ) | (19.76 | ) | (6.77 | ) | |||||||||||
|
Cash dividends declared (rounded)
|
- | - | - | - | .87 | |||||||||||||||
|
Stock dividends declared (6)
|
- | - | - |
3 for 130
|
2 for 130
|
|||||||||||||||
|
Book value
|
6.74 | 6.62 | 15.40 | 41.78 | 84.75 | |||||||||||||||
|
Tangible book value (5)
|
6.64 | 6.47 | 14.80 | 30.09 | 51.93 | |||||||||||||||
|
Key performance ratios:
|
||||||||||||||||||||
|
Return on equity (4)
|
6.43 | (93.57 | ) % | (85.08 | ) % | (34.40 | ) % | (7.82 | ) % | |||||||||||
|
Return on assets
|
.55 | (3.15 | ) | (6.61 | ) | (2.76 | ) | (.76 | ) | |||||||||||
|
Net interest margin
|
3.50 | 3.44 | 3.56 | 3.29 | 3.18 | |||||||||||||||
|
Operating efficiency ratio from continuing operations (2)(3)
|
64.02 | 92.27 | 98.98 | 73.97 | 70.00 | |||||||||||||||
|
Equity to assets
|
8.47 | 7.75 | 10.77 | 11.12 | 10.22 | |||||||||||||||
|
Tangible equity to assets (5)
|
8.38 | 7.62 | 8.88 | 8.33 | 6.67 | |||||||||||||||
|
Tangible common equity to assets (5)
|
5.54 | 3.74 | 6.52 | 6.15 | 6.57 | |||||||||||||||
|
Tangible common equity to risk-weighted assets (5)
|
8.33 | 8.25 | 5.64 | 10.39 | 8.34 | |||||||||||||||
|
ASSET QUALITY *
|
||||||||||||||||||||
|
Non-performing loans
|
$ | 109,894 | $ | 127,479 | $ | 179,094 | $ | 264,092 | $ | 190,723 | ||||||||||
|
Foreclosed properties
|
18,264 | 32,859 | 142,208 | 120,770 | 59,768 | |||||||||||||||
|
Total non-performing assets (NPAs)
|
128,158 | 160,338 | 321,302 | 384,862 | 250,491 | |||||||||||||||
|
Allowance for loan losses
|
107,137 | 114,468 | 174,695 | 155,602 | 122,271 | |||||||||||||||
|
Operating net charge-offs (1)
|
69,831 | 311,227 | 215,657 | 276,669 | 151,152 | |||||||||||||||
|
Allowance for loan losses to loans
|
2.57 | % | 2.79 | % | 3.79 | % | 3.02 | % | 2.14 | % | ||||||||||
|
Operating net charge-offs to average loans (1)
|
1.69 | 7.33 | 4.42 | 5.03 | 2.57 | |||||||||||||||
|
NPAs to loans and foreclosed properties
|
3.06 | 3.87 | 6.77 | 7.30 | 4.35 | |||||||||||||||
|
NPAs to total assets
|
1.88 | 2.30 | 4.42 | 4.81 | 2.92 | |||||||||||||||
|
AVERAGE BALANCES ($ in millions)
|
||||||||||||||||||||
|
Loans
|
$ | 4,166 | $ | 4,307 | $ | 4,961 | $ | 5,548 | $ | 5,891 | ||||||||||
|
Investment securities
|
2,089 | 1,999 | 1,453 | 1,656 | 1,489 | |||||||||||||||
|
Earning assets
|
6,547 | 6,785 | 6,822 | 7,465 | 7,504 | |||||||||||||||
|
Total assets
|
6,865 | 7,189 | 7,605 | 8,269 | 8,319 | |||||||||||||||
|
Deposits
|
5,885 | 6,275 | 6,373 | 6,713 | 6,524 | |||||||||||||||
|
Shareholders’ equity
|
582 | 557 | 819 | 920 | 850 | |||||||||||||||
|
Common shares - Basic (thousands)
|
57,857 | 39,943 | 18,925 | 12,075 | 9,474 | |||||||||||||||
|
Common shares - Diluted (thousands)
|
57,857 | 39,943 | 18,925 | 12,075 | 9,474 | |||||||||||||||
|
AT YEAR END ($ in millions)
|
||||||||||||||||||||
|
Loans *
|
$ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | ||||||||||
|
Investment securities
|
2,079 | 2,120 | 1,490 | 1,530 | 1,617 | |||||||||||||||
|
Total assets
|
6,802 | 6,983 | 7,276 | 8,000 | 8,592 | |||||||||||||||
|
Deposits
|
5,952 | 6,098 | 6,469 | 6,628 | 7,004 | |||||||||||||||
|
Shareholders’ equity
|
585 | 575 | 469 | 962 | 989 | |||||||||||||||
|
Common shares outstanding (thousands)
|
57,741 | 57,561 | 18,937 | 18,809 | 9,602 | |||||||||||||||
|
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Number of new shares issued for shares currently held.
|
|
| * |
Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
|
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
|
Selected Financial Information
|
||||||||||||||||||||||||||||||||||||||||
|
2012
|
2011
|
For the Twelve
Months Ended
|
||||||||||||||||||||||||||||||||||||||
|
(in thousands, except per share
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
|||||||||||||||||||||||||||||||||||
|
data; taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||||||||||||||
|
Interest revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Interest revenue - taxable equivalent
|
$ | 64,450 | $ | 65,978 | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 267,429 | $ | 299,344 | $ | 343,123 | $ | 404,961 | $ | 466,969 | ||||||||||||||||||||
|
Taxable equivalent adjustment
|
(381 | ) | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | ||||||||||||||||||||
|
Interest revenue (GAAP)
|
$ | 64,069 | $ | 65,559 | $ | 66,336 | $ | 69,775 | $ | 71,482 | $ | 265,739 | $ | 297,637 | $ | 341,122 | $ | 402,829 | $ | 464,708 | ||||||||||||||||||||
|
Net interest revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Net interest revenue - taxable equivalent
|
$ | 56,028 | $ | 57,371 | $ | 56,836 | $ | 58,864 | $ | 59,050 | $ | 229,099 | $ | 233,669 | $ | 243,052 | $ | 245,227 | $ | 238,704 | ||||||||||||||||||||
|
Taxable equivalent adjustment
|
(381 | ) | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | ||||||||||||||||||||
|
Net interest revenue (GAAP)
|
$ | 55,647 | $ | 56,952 | $ | 56,392 | $ | 58,418 | $ | 58,627 | $ | 227,409 | $ | 231,962 | $ | 241,051 | $ | 243,095 | $ | 236,443 | ||||||||||||||||||||
|
Provision for loan losses reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating provision for loan losses
|
$ | 14,000 | $ | 15,500 | $ | 18,000 | $ | 15,000 | $ | 14,000 | $ | 62,500 | $ | 251,000 | $ | 234,750 | $ | 310,000 | $ | 184,000 | ||||||||||||||||||||
|
Partial recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | (11,750 | ) | - | - | |||||||||||||||||||||||||||||
|
Provision for loan losses (GAAP)
|
$ | 14,000 | $ | 15,500 | $ | 18,000 | $ | 15,000 | $ | 14,000 | $ | 62,500 | $ | 251,000 | $ | 223,000 | $ | 310,000 | $ | 184,000 | ||||||||||||||||||||
|
Fee revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating fee revenue
|
$ | 14,761 | $ | 13,764 | $ | 12,867 | $ | 15,379 | $ | 12,667 | $ | 56,771 | $ | 49,908 | $ | 48,548 | $ | 50,964 | $ | 46,081 | ||||||||||||||||||||
|
Gain from acquisition
|
- | - | - | - | - | - | - | - | 11,390 | - | ||||||||||||||||||||||||||||||
|
Fee revenue (GAAP)
|
$ | 14,761 | $ | 13,764 | $ | 12,867 | $ | 15,379 | $ | 12,667 | $ | 56,771 | $ | 49,908 | $ | 48,548 | $ | 62,354 | $ | 46,081 | ||||||||||||||||||||
|
Total revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Total operating revenue
|
$ | 56,789 | $ | 55,635 | $ | 51,703 | $ | 59,243 | $ | 57,717 | $ | 223,370 | $ | 32,577 | $ | 56,850 | $ | (13,809 | ) | $ | 100,785 | |||||||||||||||||||
|
Taxable equivalent adjustment
|
(381 | ) | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | ||||||||||||||||||||
|
Gain from acquisition
|
- | - | - | - | - | - | - | - | 11,390 | - | ||||||||||||||||||||||||||||||
|
Partial recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | 11,750 | - | - | ||||||||||||||||||||||||||||||
|
Total revenue (GAAP)
|
$ | 56,408 | $ | 55,216 | $ | 51,259 | $ | 58,797 | $ | 57,294 | $ | 221,680 | $ | 30,870 | $ | 66,599 | $ | (4,551 | ) | $ | 98,524 | |||||||||||||||||||
|
Expense reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating expense
|
$ | 46,726 | $ | 44,783 | $ | 44,310 | $ | 46,955 | $ | 51,080 | $ | 182,774 | $ | 261,599 | $ | 288,301 | $ | 217,050 | $ | 200,335 | ||||||||||||||||||||
|
Noncash goodwill impairment charge
|
- | - | - | - | - | - | - | 210,590 | 95,000 | - | ||||||||||||||||||||||||||||||
|
Severance costs
|
- | - | - | - | - | - | - | - | 2,898 | - | ||||||||||||||||||||||||||||||
|
Operating expense (GAAP)
|
$ | 46,726 | $ | 44,783 | $ | 44,310 | $ | 46,955 | $ | 51,080 | $ | 182,774 | $ | 261,599 | $ | 498,891 | $ | 314,948 | $ | 200,335 | ||||||||||||||||||||
|
Income (loss) before taxes reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Income (loss) before taxes
|
$ | 10,063 | $ | 10,852 | $ | 7,393 | $ | 12,288 | $ | 6,637 | $ | 40,596 | $ | (229,022 | ) | $ | (231,451 | ) | $ | (230,859 | ) | $ | (99,550 | ) | ||||||||||||||||
|
Taxable equivalent adjustment
|
(381 | ) | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | ||||||||||||||||||||
|
Gain from acquisition
|
- | - | - | - | - | - | - | - | 11,390 | - | ||||||||||||||||||||||||||||||
|
Noncash goodwill impairment charge
|
- | - | - | - | - | - | - | (210,590 | ) | (95,000 | ) | - | ||||||||||||||||||||||||||||
|
Severance costs
|
- | - | - | - | - | - | - | - | (2,898 | ) | - | |||||||||||||||||||||||||||||
|
Partial recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | 11,750 | - | - | ||||||||||||||||||||||||||||||
|
Income (loss) before taxes (GAAP)
|
$ | 9,682 | $ | 10,433 | $ | 6,949 | $ | 11,842 | $ | 6,214 | $ | 38,906 | $ | (230,729 | ) | $ | (432,292 | ) | $ | (319,499 | ) | $ | (101,811 | ) | ||||||||||||||||
|
Income tax (benefit) expense reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Income tax (benefit) expense
|
$ | 802 | $ | 284 | $ | 894 | $ | 760 | $ | (3,264 | ) | $ | 2,740 | $ | (2,276 | ) | $ | 73,218 | $ | (91,754 | ) | $ | (35,651 | ) | ||||||||||||||||
|
Taxable equivalent adjustment
|
(381 | ) | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | ||||||||||||||||||||
|
Gain from acquisition, tax expense
|
- | - | - | - | - | - | - | - | 4,328 | - | ||||||||||||||||||||||||||||||
|
Severance costs, tax benefit
|
- | - | - | - | - | - | - | - | (1,101 | ) | - | |||||||||||||||||||||||||||||
|
Income tax (benefit) expense (GAAP)
|
$ | 421 | $ | (135 | ) | $ | 450 | $ | 314 | $ | (3,687 | ) | $ | 1,050 | $ | (3,983 | ) | $ | 71,217 | $ | (90,659 | ) | $ | (37,912 | ) | |||||||||||||||
|
Diluted earnings (loss) from continuing operations per common share reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Diluted operating earnings (loss) from continuing operations per common share
|
$ | .11 | $ | .13 | $ | .06 | $ | .15 | $ | .12 | $ | .44 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | $ | (6.82 | ) | ||||||||||||||||
|
Gain from acquisition
|
- | - | - | - | - | - | - | - | .58 | - | ||||||||||||||||||||||||||||||
|
Noncash goodwill impairment charge
|
- | - | - | - | - | - | - | (11.13 | ) | (7.86 | ) | - | ||||||||||||||||||||||||||||
|
Severance costs
|
- | - | - | - | - | - | - | - | (.15 | ) | - | |||||||||||||||||||||||||||||
|
Partial recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | .62 | - | - | ||||||||||||||||||||||||||||||
|
Diluted earnings (loss) from continuing operations per common share (GAAP)
|
$ | .11 | $ | .13 | $ | .06 | $ | .15 | $ | .12 | $ | .44 | $ | (5.97 | ) | $ | (27.15 | ) | $ | (19.80 | ) | $ | (6.82 | ) | ||||||||||||||||
|
Book value per common share reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Tangible book value per common share
|
$ | 6.64 | $ | 6.64 | $ | 6.48 | $ | 6.54 | $ | 6.47 | $ | 6.64 | $ | 6.47 | $ | 14.80 | $ | 30.09 | $ | 51.93 | ||||||||||||||||||||
|
Effect of goodwill and other intangibles
|
.10 | .11 | .13 | .14 | .15 | .10 | .15 | .60 | 11.69 | 32.82 | ||||||||||||||||||||||||||||||
|
Book value per common share (GAAP)
|
$ | 6.74 | $ | 6.75 | $ | 6.61 | $ | 6.68 | $ | 6.62 | $ | 6.74 | $ | 6.62 | $ | 15.40 | $ | 41.78 | $ | 84.75 | ||||||||||||||||||||
|
Efficiency ratio from continuing operations reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating efficiency ratio from continuing operations
|
66.04 | % | 62.95 | % | 63.84 | % | 63.31 | % | 71.23 | % | 64.02 | % | 92.27 | % | 98.98 | % | 73.97 | % | 70.00 | % | ||||||||||||||||||||
|
Gain from acquisition
|
- | - | - | - | - | - | - | - | (2.77 | ) | - | |||||||||||||||||||||||||||||
|
Noncash goodwill impairment charge
|
- | - | - | - | - | - | - | 72.29 | 31.17 | - | ||||||||||||||||||||||||||||||
|
Severance costs
|
- | - | - | - | - | - | - | - | .95 | - | ||||||||||||||||||||||||||||||
|
Efficiency ratio from continuing operations (GAAP)
|
66.04 | % | 62.95 | % | 63.84 | % | 63.31 | % | 71.23 | % | 64.02 | % | 92.27 | % | 171.27 | % | 103.32 | % | 70.00 | % | ||||||||||||||||||||
|
Average equity to assets reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Tangible common equity to assets
|
5.67 | % | 5.73 | % | 5.45 | % | 5.33 | % | 5.38 | % | 5.54 | % | 3.74 | % | 6.52 | % | 6.15 | % | 6.57 | % | ||||||||||||||||||||
|
Effect of preferred equity
|
2.88 | 2.93 | 2.79 | 2.75 | 2.78 | 2.84 | 3.88 | 2.36 | 2.18 | .10 | ||||||||||||||||||||||||||||||
|
Tangible equity to assets
|
8.55 | 8.66 | 8.24 | 8.08 | 8.16 | 8.38 | 7.62 | 8.88 | 8.33 | 6.67 | ||||||||||||||||||||||||||||||
|
Effect of goodwill and other intangibles
|
.08 | .09 | .09 | .11 | .12 | .09 | .13 | 1.89 | 2.79 | 3.55 | ||||||||||||||||||||||||||||||
|
Equity to assets (GAAP)
|
8.63 | % | 8.75 | % | 8.33 | % | 8.19 | % | 8.28 | % | 8.47 | % | 7.75 | % | 10.77 | % | 11.12 | % | 10.22 | % | ||||||||||||||||||||
|
Tangible common equity to risk-weighted assets reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Tangible common equity to risk-weighted assets
|
8.33 | % | 8.44 | % | 8.37 | % | 8.21 | % | 8.25 | % | 8.33 | % | 8.25 | % | 5.64 | % | 10.39 | % | 8.34 | % | ||||||||||||||||||||
|
Effect of other comprehensive income
|
.51 | .36 | .28 | .10 | (.03 | ) | .51 | (.03 | ) | (.42 | ) | (.87 | ) | (.91 | ) | |||||||||||||||||||||||||
|
Effect of deferred tax limitation
|
- | - | - | - | - | - | - | - | (1.27 | ) | - | |||||||||||||||||||||||||||||
|
Effect of trust preferred
|
1.15 | 1.17 | 1.19 | 1.15 | 1.18 | 1.15 | 1.18 | 1.06 | .97 | .88 | ||||||||||||||||||||||||||||||
|
Effect of preferred equity
|
4.24 | 4.29 | 4.35 | 4.23 | 4.29 | 4.24 | 4.29 | 3.53 | 3.19 | 2.90 | ||||||||||||||||||||||||||||||
|
Tier I capital ratio (Regulatory)
|
14.23 | % | 14.26 | % | 14.19 | % | 13.69 | % | 13.69 | % | 14.23 | % | 13.69 | % | 9.81 | % | 12.41 | % | 11.21 | % | ||||||||||||||||||||
|
Net charge-offs reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating net charge-offs
|
$ | 14,505 | $ | 20,563 | $ | 18,896 | $ | 15,867 | $ | 45,624 | $ | 69,831 | $ | 311,227 | $ | 215,657 | $ | 276,669 | $ | 151,152 | ||||||||||||||||||||
|
Subsequent partial recovery of fraud-related charge-off
|
- | - | - | - | - | - | - | (11,750 | ) | - | - | |||||||||||||||||||||||||||||
|
Net charge-offs (GAAP)
|
$ | 14,505 | $ | 20,563 | $ | 18,896 | $ | 15,867 | $ | 45,624 | $ | 69,831 | $ | 311,227 | $ | 203,907 | $ | 276,669 | $ | 151,152 | ||||||||||||||||||||
|
Net charge-offs to average loans reconciliation
|
||||||||||||||||||||||||||||||||||||||||
|
Operating net charge-offs to average loans
|
1.39 | % | 1.99 | % | 1.85 | % | 1.55 | % | 4.39 | % | 1.69 | % | 7.33 | % | 4.42 | % | 5.03 | % | 2.57 | % | ||||||||||||||||||||
|
Subsequent partial recovery of fraud-related charge-off
|
- | - | - | - | - | - | - | (.25 | ) | - | - | |||||||||||||||||||||||||||||
|
Net charge-offs to average loans (GAAP)
|
1.39 | % | 1.99 | % | 1.85 | % | 1.55 | % | 4.39 | % | 1.69 | % | 7.33 | % | 4.17 | % | 5.03 | % | 2.57 | % | ||||||||||||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
| Loan Portfolio Composition at Period-End (1) | ||||||||||||||||||||||||||||
|
2012
|
2011
|
Linked
|
Year over
|
|||||||||||||||||||||||||
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Quarter | Year | ||||||||||||||||||||||
|
(in millions)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Change | Change | |||||||||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||||||||||
|
Owner occupied commercial RE
|
$ | 1,131 | $ | 1,126 | $ | 1,140 | $ | 1,137 | $ | 1,112 | $ | 5 | $ | 19 | ||||||||||||||
|
Income producing commercial RE
|
682 | 693 | 697 | 706 | 710 | (11 | ) | (28 | ) | |||||||||||||||||||
|
Commercial & industrial
|
458 | 460 | 450 | 440 | 428 | (2 | ) | 30 | ||||||||||||||||||||
|
Commercial construction
|
155 | 161 | 169 | 167 | 164 | (6 | ) | (9 | ) | |||||||||||||||||||
|
Total commercial
|
2,426 | 2,440 | 2,456 | 2,450 | 2,414 | (14 | ) | 12 | ||||||||||||||||||||
|
Residential mortgage
|
829 | 833 | 834 | 836 | 835 | (4 | ) | (6 | ) | |||||||||||||||||||
|
Home equity lines of credit
|
385 | 341 | 294 | 295 | 300 | 44 | 85 | |||||||||||||||||||||
|
Residential construction
|
382 | 389 | 409 | 436 | 448 | (7 | ) | (66 | ) | |||||||||||||||||||
|
Consumer installment
|
153 | 135 | 126 | 111 | 113 | 18 | 40 | |||||||||||||||||||||
|
Total loans
|
$ | 4,175 | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | 37 | 65 | ||||||||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||||||||||
|
North Georgia
|
$ | 1,364 | $ | 1,383 | $ | 1,387 | $ | 1,408 | $ | 1,426 | (19 | ) | (62 | ) | ||||||||||||||
|
Atlanta MSA
|
1,288 | 1,257 | 1,252 | 1,239 | 1,220 | 31 | 68 | |||||||||||||||||||||
|
North Carolina
|
579 | 579 | 576 | 588 | 597 | - | (18 | ) | ||||||||||||||||||||
|
Coastal Georgia
|
400 | 380 | 369 | 366 | 346 | 20 | 54 | |||||||||||||||||||||
|
Gainesville MSA
|
261 | 256 | 259 | 262 | 265 | 5 | (4 | ) | ||||||||||||||||||||
|
East Tennessee
|
283 | 283 | 276 | 265 | 256 | - | 27 | |||||||||||||||||||||
|
Total loans
|
$ | 4,175 | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | 37 | 65 | ||||||||||||||||
|
RESIDENTIAL CONSTRUCTION
|
||||||||||||||||||||||||||||
|
Dirt loans
|
||||||||||||||||||||||||||||
|
Acquisition & development
|
$ | 62 | $ | 71 | $ | 78 | $ | 86 | $ | 88 | (9 | ) | (26 | ) | ||||||||||||||
|
Land loans
|
46 | 41 | 45 | 57 | 61 | 5 | (15 | ) | ||||||||||||||||||||
|
Lot loans
|
193 | 196 | 203 | 204 | 207 | (3 | ) | (14 | ) | |||||||||||||||||||
|
Total
|
301 | 308 | 326 | 347 | 356 | (7 | ) | (55 | ) | |||||||||||||||||||
|
House loans
|
||||||||||||||||||||||||||||
|
Spec
|
41 | 44 | 49 | 57 | 59 | (3 | ) | (18 | ) | |||||||||||||||||||
|
Sold
|
40 | 37 | 34 | 32 | 33 | 3 | 7 | |||||||||||||||||||||
|
Total
|
81 | 81 | 83 | 89 | 92 | - | (11 | ) | ||||||||||||||||||||
|
Total residential construction
|
$ | 382 | $ | 389 | $ | 409 | $ | 436 | $ | 448 | (7 | ) | (66 | ) | ||||||||||||||
|
(1) Excludes total loans of $33.4 million, $37.0 million, $41.5 million, $47.2 million and $54.5 million as of December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 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
| Loan Portfolio Composition at Year-End (1) | ||||||||||||||||||||
|
(in millions)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||
|
Owner occupied commercial RE
|
$ | 1,131 | $ | 1,112 | $ | 980 | $ | 963 | $ | 955 | ||||||||||
|
Income producing commercial RE
|
682 | 710 | 781 | 816 | 672 | |||||||||||||||
|
Commercial & industrial
|
458 | 428 | 441 | 390 | 410 | |||||||||||||||
|
Commercial construction
|
155 | 164 | 297 | 363 | 500 | |||||||||||||||
|
Total commercial
|
2,426 | 2,414 | 2,499 | 2,532 | 2,537 | |||||||||||||||
|
Residential mortgage
|
829 | 835 | 944 | 1,052 | 1,142 | |||||||||||||||
|
Home equity lines of credit
|
385 | 300 | 335 | 375 | 384 | |||||||||||||||
|
Residential construction
|
382 | 448 | 695 | 1,050 | 1,479 | |||||||||||||||
|
Consumer / installment
|
153 | 113 | 131 | 142 | 163 | |||||||||||||||
|
Total loans
|
$ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | ||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||
|
North Georgia
|
$ | 1,364 | $ | 1,426 | $ | 1,689 | $ | 1,884 | $ | 2,040 | ||||||||||
|
Atlanta MSA
|
1,288 | 1,220 | 1,310 | 1,435 | 1,706 | |||||||||||||||
|
North Carolina
|
579 | 597 | 702 | 772 | 810 | |||||||||||||||
|
Coastal Georgia
|
400 | 346 | 335 | 405 | 464 | |||||||||||||||
|
Gainesville MSA
|
261 | 265 | 312 | 390 | 420 | |||||||||||||||
|
East Tennessee
|
283 | 256 | 256 | 265 | 265 | |||||||||||||||
|
Total loans
|
$ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | ||||||||||
| (1) Excludes total loans of $33.4 million, $54.5 million, $68.2 million and $85.1 million as of December 31, 2012, 2011, 2010 and 2009, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
| Credit Quality (1) | ||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Fourth Quarter 2012
|
Third Quarter 2012
|
Second Quarter 2012
|
||||||||||||||||||||||||||||||||||
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
||||||||||||||||||||||||||||
|
(in thousands)
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
|||||||||||||||||||||||||||
|
NPAs BY CATEGORY
|
||||||||||||||||||||||||||||||||||||
|
Owner occupied CRE
|
$ | 12,599 | $ | 4,989 | $ | 17,588 | $ | 14,140 | $ | 7,170 | $ | 21,310 | $ | 9,399 | $ | 7,914 | $ | 17,313 | ||||||||||||||||||
|
Income producing CRE
|
9,549 | 490 | 10,039 | 11,756 | 1,597 | 13,353 | 9,716 | 2,672 | 12,388 | |||||||||||||||||||||||||||
|
Commercial & industrial
|
31,817 | - | 31,817 | 32,678 | - | 32,678 | 34,982 | - | 34,982 | |||||||||||||||||||||||||||
|
Commercial construction
|
23,843 | 2,204 | 26,047 | 18,590 | 3,121 | 21,711 | 18,175 | 2,732 | 20,907 | |||||||||||||||||||||||||||
|
Total commercial
|
77,808 | 7,683 | 85,491 | 77,164 | 11,888 | 89,052 | 72,272 | 13,318 | 85,590 | |||||||||||||||||||||||||||
|
Residential mortgage
|
11,151 | 4,753 | 15,904 | 12,629 | 6,031 | 18,660 | 15,272 | 5,591 | 20,863 | |||||||||||||||||||||||||||
|
Home equity lines of credit
|
1,438 | - | 1,438 | 1,367 | - | 1,367 | 1,359 | - | 1,359 | |||||||||||||||||||||||||||
|
Residential construction
|
18,702 | 5,828 | 24,530 | 22,935 | 9,039 | 31,974 | 25,530 | 11,512 | 37,042 | |||||||||||||||||||||||||||
|
Consumer installment
|
795 | - | 795 | 906 | - | 906 | 907 | - | 907 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 109,894 | $ | 18,264 | $ | 128,158 | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | ||||||||||||||||||
|
Balance as a % of
|
||||||||||||||||||||||||||||||||||||
|
Unpaid Principal
|
69.5 | % | 39.7 | % | 62.8 | % | 68.8 | % | 36.4 | % | 58.8 | % | 68.8 | % | 39.3 | % | 59.4 | % | ||||||||||||||||||
|
NPAs BY MARKET
|
||||||||||||||||||||||||||||||||||||
|
North Georgia
|
$ | 69,950 | $ | 8,219 | $ | 78,169 | $ | 72,211 | $ | 14,582 | $ | 86,793 | $ | 77,332 | $ | 13,546 | $ | 90,878 | ||||||||||||||||||
|
Atlanta MSA
|
18,556 | 3,442 | 21,998 | 21,349 | 5,926 | 27,275 | 17,593 | 8,651 | 26,244 | |||||||||||||||||||||||||||
|
North Carolina
|
11,014 | 2,579 | 13,593 | 9,622 | 2,771 | 12,393 | 10,657 | 3,287 | 13,944 | |||||||||||||||||||||||||||
|
Coastal Georgia
|
3,810 | 1,609 | 5,419 | 6,822 | 864 | 7,686 | 5,822 | 785 | 6,607 | |||||||||||||||||||||||||||
|
Gainesville MSA
|
903 | 556 | 1,459 | 840 | 1,328 | 2,168 | 991 | 2,998 | 3,989 | |||||||||||||||||||||||||||
|
East Tennessee
|
5,661 | 1,859 | 7,520 | 4,157 | 1,487 | 5,644 | 2,945 | 1,154 | 4,099 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 109,894 | $ | 18,264 | $ | 128,158 | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | ||||||||||||||||||
|
NPA ACTIVITY
|
||||||||||||||||||||||||||||||||||||
|
Beginning Balance
|
$ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | ||||||||||||||||||
|
Loans placed on non-accrual
|
20,211 | - | 20,211 | 30,535 | - | 30,535 | 29,364 | - | 29,364 | |||||||||||||||||||||||||||
|
Payments received
|
(6,458 | ) | - | (6,458 | ) | (3,646 | ) | - | (3,646 | ) | (15,027 | ) | - | (15,027 | ) | |||||||||||||||||||||
|
Loan charge-offs
|
(11,722 | ) | - | (11,722 | ) | (19,227 | ) | - | (19,227 | ) | (19,382 | ) | - | (19,382 | ) | |||||||||||||||||||||
|
Foreclosures
|
(7,138 | ) | 7,138 | - | (8,001 | ) | 8,001 | - | (9,319 | ) | 9,319 | - | ||||||||||||||||||||||||
|
Capitalized costs
|
- | 201 | 201 | - | 102 | 102 | - | 415 | 415 | |||||||||||||||||||||||||||
|
Note / property sales
|
- | (12,845 | ) | (12,845 | ) | - | (8,822 | ) | (8,822 | ) | - | (10,461 | ) | (10,461 | ) | |||||||||||||||||||||
|
Write downs
|
- | (1,438 | ) | (1,438 | ) | - | (2,394 | ) | (2,394 | ) | - | (1,008 | ) | (1,008 | ) | |||||||||||||||||||||
|
Net gains (losses) on sales
|
- | (1,750 | ) | (1,750 | ) | - | (350 | ) | (350 | ) | - | 269 | 269 | |||||||||||||||||||||||
|
Ending Balance
|
$ | 109,894 | $ | 18,264 | $ | 128,158 | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | ||||||||||||||||||
|
Fourth Quarter 2012
|
Third Quarter 2012
|
Second Quarter 2012
|
||||||||||||||||||||||
|
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
|
||||||||||||||||||||||||
|
Owner occupied CRE
|
$ | 4,997 | 1.76 | $ | 6,192 | 3.56 | % | $ | 1,305 | .46 | % | |||||||||||||
|
Income producing CRE
|
1,153 | .67 | 1,982 | .70 | 3,044 | 1.75 | ||||||||||||||||||
|
Commercial & industrial
|
135 | .12 | (259 | ) | (.23 | ) | 775 | .70 | ||||||||||||||||
|
Commercial construction
|
1,688 | 4.25 | 3,190 | 7.74 | 88 | .21 | ||||||||||||||||||
|
Total commercial
|
7,973 | 1.30 | 11,105 | 1.81 | 5,212 | .86 | ||||||||||||||||||
|
Residential mortgage
|
3,254 | 1.55 | 2,846 | 1.40 | 1,971 | .70 | ||||||||||||||||||
|
Home equity lines of credit
|
445 | .49 | 681 | .80 | 1,891 | 2.60 | ||||||||||||||||||
|
Residential construction
|
2,435 | 2.52 | 5,676 | 5.69 | 9,563 | 9.14 | ||||||||||||||||||
|
Consumer installment
|
398 | 1.10 | 255 | .78 | 259 | .88 | ||||||||||||||||||
|
Total
|
$ | 14,505 | 1.39 | $ | 20,563 | 1.99 | $ | 18,896 | 1.85 | |||||||||||||||
|
NET CHARGE-OFFS BY MARKET
|
||||||||||||||||||||||||
|
North Georgia
|
$ | 4,474 | 1.26 | $ | 6,451 | 1.84 | % | $ | 12,474 | 3.58 | % | |||||||||||||
|
Atlanta MSA
|
3,977 | 1.27 | 9,344 | 3.02 | 2,307 | .75 | ||||||||||||||||||
|
North Carolina
|
2,032 | 1.39 | 1,674 | 1.15 | 3,634 | 2.52 | ||||||||||||||||||
|
Coastal Georgia
|
574 | .60 | 2,486 | 2.67 | 211 | .23 | ||||||||||||||||||
|
Gainesville MSA
|
1,331 | 2.04 | 294 | .45 | (187 | ) | (.29 | ) | ||||||||||||||||
|
East Tennessee
|
2,117 | 2.98 | 314 | .45 | 457 | .68 | ||||||||||||||||||
|
Total
|
$ | 14,505 | 1.39 | $ | 20,563 | 1.99 | $ | 18,896 | 1.85 | |||||||||||||||
| (1) |
Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
|
| (2) |
Annualized.
|
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Operations (Unaudited)
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
(in thousands, except per share data)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
Interest revenue:
|
||||||||||||||||
|
Loans, including fees
|
$ | 53,335 | $ | 57,697 | $ | 217,140 | $ | 239,056 | ||||||||
|
Investment securities, including tax exempt of $219, $255, $956 and $1,009
|
9,841 | 13,296 | 44,613 | 56,260 | ||||||||||||
|
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks
|
893 | 489 | 3,986 | 2,321 | ||||||||||||
|
Total interest revenue
|
64,069 | 71,482 | 265,739 | 297,637 | ||||||||||||
|
Interest expense:
|
||||||||||||||||
|
Deposits:
|
||||||||||||||||
|
NOW
|
462 | 807 | 2,049 | 3,998 | ||||||||||||
|
Money market
|
617 | 800 | 2,518 | 5,456 | ||||||||||||
|
Savings
|
38 | 41 | 150 | 234 | ||||||||||||
|
Time
|
3,674 | 7,338 | 19,518 | 39,151 | ||||||||||||
|
Total deposit interest expense
|
4,791 | 8,986 | 24,235 | 48,839 | ||||||||||||
|
Federal funds purchased, repurchase agreements and other short-term borrowings
|
524 | 1,053 | 2,987 | 4,250 | ||||||||||||
|
Federal Home Loan Bank advances
|
25 | 441 | 907 | 2,042 | ||||||||||||
|
Long-term debt
|
3,082 | 2,375 | 10,201 | 10,544 | ||||||||||||
|
Total interest expense
|
8,422 | 12,855 | 38,330 | 65,675 | ||||||||||||
|
Net interest revenue
|
55,647 | 58,627 | 227,409 | 231,962 | ||||||||||||
|
Provision for loan losses
|
14,000 | 14,000 | 62,500 | 251,000 | ||||||||||||
|
Net interest revenue after provision for loan losses
|
41,647 | 44,627 | 164,909 | (19,038 | ) | |||||||||||
|
Fee revenue:
|
||||||||||||||||
|
Service charges and fees
|
8,375 | 7,248 | 31,670 | 29,110 | ||||||||||||
|
Mortgage loan and other related fees
|
3,262 | 1,825 | 10,483 | 5,419 | ||||||||||||
|
Brokerage fees
|
751 | 782 | 3,082 | 2,986 | ||||||||||||
|
Securities gains, net
|
31 | 4 | 7,078 | 842 | ||||||||||||
|
Loss from prepayment of debt
|
- | - | (6,681 | ) | (791 | ) | ||||||||||
|
Other
|
2,342 | 2,808 | 11,139 | 12,342 | ||||||||||||
|
Total fee revenue
|
14,761 | 12,667 | 56,771 | 49,908 | ||||||||||||
|
Total revenue
|
56,408 | 57,294 | 221,680 | 30,870 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
23,586 | 23,473 | 96,026 | 100,095 | ||||||||||||
|
Communications and equipment
|
3,320 | 3,129 | 12,940 | 13,135 | ||||||||||||
|
Occupancy
|
3,455 | 3,972 | 14,304 | 15,645 | ||||||||||||
|
Advertising and public relations
|
987 | 944 | 3,855 | 4,291 | ||||||||||||
|
Postage, printing and supplies
|
1,050 | 1,017 | 3,899 | 4,256 | ||||||||||||
|
Professional fees
|
2,685 | 1,996 | 8,792 | 9,727 | ||||||||||||
|
Foreclosed property
|
4,611 | 9,302 | 13,993 | 78,905 | ||||||||||||
|
FDIC assessments and other regulatory charges
|
2,505 | 2,599 | 10,097 | 14,259 | ||||||||||||
|
Amortization of intangibles
|
727 | 746 | 2,917 | 3,016 | ||||||||||||
|
Other
|
3,800 | 3,902 | 15,951 | 18,270 | ||||||||||||
|
Total operating expenses
|
46,726 | 51,080 | 182,774 | 261,599 | ||||||||||||
|
Net income (loss) before income taxes
|
9,682 | 6,214 | 38,906 | (230,729 | ) | |||||||||||
|
Income tax (benefit) expense
|
421 | (3,687 | ) | 1,050 | (3,983 | ) | ||||||||||
|
Net income (loss)
|
9,261 | 9,901 | 37,856 | (226,746 | ) | |||||||||||
|
Preferred stock dividends and discount accretion
|
3,045 | 3,025 | 12,148 | 11,838 | ||||||||||||
|
Net income (loss) available to common shareholders
|
$ | 6,216 | $ | 6,876 | $ | 25,708 | $ | (238,584 | ) | |||||||
|
Earnings (loss) per common share - Basic
|
$ | .11 | $ | .12 | $ | .44 | $ | (5.97 | ) | |||||||
|
Earnings (loss) per common share - Diluted
|
.11 | .12 | .44 | (5.97 | ) | |||||||||||
|
Weighted average common shares outstanding - Basic
|
57,971 | 57,646 | 57,857 | 39,943 | ||||||||||||
|
Weighted average common shares outstanding - Diluted
|
57,971 | 57,646 | 57,857 | 39,943 | ||||||||||||
UNITED COMMUNITY BANKS, INC.
| Consolidated Balance Sheet | ||||||||
|
December 31,
|
December 31,
|
|||||||
|
(in thousands, except share and per share data)
|
2012
|
2011
|
||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
Cash and due from banks
|
$ | 66,536 | $ | 53,807 | ||||
|
Interest-bearing deposits in banks
|
124,613 | 139,609 | ||||||
|
Federal funds sold, reverse repurchase agreements, securities lending, commercial paper and
|
||||||||
|
short-term investments
|
60,000 | 185,000 | ||||||
|
Cash and cash equivalents
|
251,149 | 378,416 | ||||||
|
Securities available for sale
|
1,834,593 | 1,790,047 | ||||||
|
Securities held to maturity (fair value $261,131 and $343,531)
|
244,184 | 330,203 | ||||||
|
Mortgage loans held for sale
|
28,821 | 23,881 | ||||||
|
Loans, net of unearned income
|
4,175,008 | 4,109,614 | ||||||
|
Less allowance for loan losses
|
(107,137 | ) | (114,468 | ) | ||||
|
Loans, net
|
4,067,871 | 3,995,146 | ||||||
|
Assets covered by loss sharing agreements with the FDIC
|
47,467 | 78,145 | ||||||
|
Premises and equipment, net
|
168,920 | 175,088 | ||||||
|
Bank owned life insurance
|
81,867 | 80,599 | ||||||
|
Accrued interest receivable
|
18,659 | 20,693 | ||||||
|
Goodwill and other intangible assets
|
5,510 | 8,428 | ||||||
|
Foreclosed property
|
18,264 | 32,859 | ||||||
|
Other assets
|
34,954 | 69,915 | ||||||
|
Total assets
|
$ | 6,802,259 | $ | 6,983,420 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Liabilities:
|
||||||||
|
Deposits:
|
||||||||
|
Demand
|
$ | 1,252,605 | $ | 992,109 | ||||
|
NOW
|
1,316,453 | 1,509,896 | ||||||
|
Money market
|
1,149,912 | 1,038,778 | ||||||
|
Savings
|
227,308 | 199,007 | ||||||
|
Time:
|
||||||||
|
Less than $100,000
|
1,055,271 | 1,332,394 | ||||||
|
Greater than $100,000
|
705,558 | 847,152 | ||||||
|
Brokered
|
245,033 | 178,647 | ||||||
|
Total deposits
|
5,952,140 | 6,097,983 | ||||||
|
Federal funds purchased, repurchase agreements, and other short-term borrowings
|
52,574 | 102,577 | ||||||
|
Federal Home Loan Bank advances
|
40,125 | 40,625 | ||||||
|
Long-term debt
|
124,805 | 120,225 | ||||||
|
Unsettled securities purchases
|
- | 10,325 | ||||||
|
Accrued expenses and other liabilities
|
47,210 | 36,199 | ||||||
|
Total liabilities
|
6,216,854 | 6,407,934 | ||||||
|
Shareholders' equity:
|
||||||||
|
Preferred stock, $1 par value; 10,000,000 shares authorized;
|
||||||||
|
Series A; $10 stated value; 21,700 shares issued and outstanding
|
217 | 217 | ||||||
|
Series B; $1,000 stated value; 180,000 shares issued and outstanding
|
178,557 | 177,092 | ||||||
|
Series D; $1,000 stated value; 16,613 shares issued and outstanding
|
16,613 | 16,613 | ||||||
|
Common stock, $1 par value; 100,000,000 shares authorized;
|
||||||||
|
42,423,870 and 41,647,100 shares issued and outstanding
|
42,424 | 41,647 | ||||||
|
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
|
||||||||
|
15,316,794 and 15,914,209 shares issued and outstanding
|
15,317 | 15,914 | ||||||
|
Common stock issuable; 133,238 and 93,681 shares
|
3,119 | 3,233 | ||||||
|
Capital surplus
|
1,057,951 | 1,054,940 | ||||||
|
Accumulated deficit
|
(705,153 | ) | (730,861 | ) | ||||
|
Accumulated other comprehensive loss
|
(23,640 | ) | (3,309 | ) | ||||
|
Total shareholders' equity
|
585,405 | 575,486 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 6,802,259 | $ | 6,983,420 | ||||
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 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)
|
$ | 4,190,725 | $ | 53,366 | 5.07 | % | $ | 4,175,320 | $ | 57,773 | 5.49 | % | ||||||||||||
|
Taxable securities (3)
|
2,065,311 | 9,622 | 1.86 | 2,114,069 | 13,041 | 2.47 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
22,483 | 358 | 6.37 | 27,224 | 417 | 6.13 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
203,090 | 1,104 | 2.17 | 371,606 | 674 | .73 | ||||||||||||||||||
|
Total interest-earning assets
|
6,481,609 | 64,450 | 3.96 | 6,688,219 | 71,905 | 4.27 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(112,846 | ) | (145,559 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
54,714 | 54,485 | ||||||||||||||||||||||
|
Premises and equipment
|
169,967 | 176,182 | ||||||||||||||||||||||
|
Other assets (3)
|
184,398 | 245,664 | ||||||||||||||||||||||
|
Total assets
|
$ | 6,777,842 | $ | 7,018,991 | ||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,261,796 | 462 | .15 | $ | 1,451,581 | 807 | .22 | ||||||||||||||||
|
Money market
|
1,200,701 | 617 | .20 | 1,041,375 | 800 | .30 | ||||||||||||||||||
|
Savings
|
224,624 | 38 | .07 | 198,541 | 41 | .08 | ||||||||||||||||||
|
Time less than $100,000
|
1,082,761 | 1,982 | .73 | 1,358,367 | 3,668 | 1.07 | ||||||||||||||||||
|
Time greater than $100,000
|
715,902 | 1,673 | .93 | 875,434 | 2,867 | 1.30 | ||||||||||||||||||
|
Brokered time deposits
|
135,708 | 19 | .06 | 180,933 | 803 | 1.76 | ||||||||||||||||||
|
Total interest-bearing deposits
|
4,621,492 | 4,791 | .41 | 5,106,231 | 8,986 | .70 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
67,403 | 524 | 3.09 | 102,776 | 1,053 | 4.06 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
39,092 | 25 | .25 | 40,625 | 441 | 4.31 | ||||||||||||||||||
|
Long-term debt
|
149,564 | 3,082 | 8.20 | 120,217 | 2,375 | 7.84 | ||||||||||||||||||
|
Total borrowed funds
|
256,059 | 3,631 | 5.64 | 263,618 | 3,869 | 5.82 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
4,877,551 | 8,422 | .69 | 5,369,849 | 12,855 | .95 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,251,327 | 1,008,327 | ||||||||||||||||||||||
|
Other liabilities
|
63,785 | 59,908 | ||||||||||||||||||||||
|
Total liabilities
|
6,192,663 | 6,438,084 | ||||||||||||||||||||||
|
Shareholders' equity
|
585,179 | 580,907 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 6,777,842 | $ | 7,018,991 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 56,028 | $ | 59,050 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.27 | % | 3.32 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.44 | % | 3.51 | % | ||||||||||||||||||||
| (1) |
Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
|
| (2) |
Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
|
| (3) |
Securities available for sale are shown at amortized cost. Pretax unrealized gains of $22.2 million in 2012 and $31.3 million in 2011 are included in other assets for purposes of this presentation.
|
| (4) |
Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
|
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 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)
|
$ | 4,165,520 | $ | 217,467 | 5.22 | % | $ | 4,307,111 | $ | 239,195 | 5.55 | % | ||||||||||||
|
Taxable securities (3)
|
2,065,162 | 43,657 | 2.11 | 1,973,678 | 55,251 | 2.80 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
23,759 | 1,565 | 6.59 | 25,693 | 1,651 | 6.43 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
292,857 | 4,740 | 1.62 | 478,403 | 3,247 | .68 | ||||||||||||||||||
|
Total interest-earning assets
|
6,547,298 | 267,429 | 4.08 | 6,784,885 | 299,344 | 4.41 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(114,647 | ) | (145,656 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
53,247 | 90,212 | ||||||||||||||||||||||
|
Premises and equipment
|
172,544 | 178,061 | ||||||||||||||||||||||
|
Other assets (3)
|
206,609 | 281,233 | ||||||||||||||||||||||
|
Total assets
|
$ | 6,865,051 | $ | 7,188,735 | ||||||||||||||||||||
|
Liabilities and Shareholders' Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,293,510 | 2,049 | .16 | $ | 1,348,493 | 3,998 | .30 | ||||||||||||||||
|
Money market
|
1,140,354 | 2,518 | .22 | 993,871 | 5,456 | .55 | ||||||||||||||||||
|
Savings
|
216,880 | 150 | .07 | 195,468 | 234 | .12 | ||||||||||||||||||
|
Time less than $100,000
|
1,170,202 | 9,788 | .84 | 1,471,596 | 18,648 | 1.27 | ||||||||||||||||||
|
Time greater than $100,000
|
766,411 | 8,027 | 1.05 | 948,659 | 14,347 | 1.51 | ||||||||||||||||||
|
Brokered time deposits
|
155,902 | 1,703 | 1.09 | 401,393 | 6,156 | 1.53 | ||||||||||||||||||
|
Total interest-bearing deposits
|
4,743,259 | 24,235 | .51 | 5,359,480 | 48,839 | .91 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
80,593 | 2,987 | 3.71 | 102,727 | 4,250 | 4.14 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
124,771 | 907 | .73 | 47,220 | 2,042 | 4.32 | ||||||||||||||||||
|
Long-term debt
|
127,623 | 10,201 | 7.99 | 139,666 | 10,544 | 7.55 | ||||||||||||||||||
|
Total borrowed funds
|
332,987 | 14,095 | 4.23 | 289,613 | 16,836 | 5.81 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
5,076,246 | 38,330 | .76 | 5,649,093 | 65,675 | 1.16 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,142,236 | 915,649 | ||||||||||||||||||||||
|
Other liabilities
|
64,986 | 66,809 | ||||||||||||||||||||||
|
Total liabilities
|
6,283,468 | 6,631,551 | ||||||||||||||||||||||
|
Shareholders' equity
|
581,583 | 557,184 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 6,865,051 | $ | 7,188,735 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 229,099 | $ | 233,669 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.32 | % | 3.25 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.50 | % | 3.44 | % | ||||||||||||||||||||
| (1) |
Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
|
| (2) |
Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
|
| (3) |
Securities available for sale are shown at amortized cost. Pretax unrealized gains of $23.6 million in 2012 and $32.2 million in 2011 are included in other assets for purposes of this presentation.
|
| (4) |
Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
|
|
|
|
 |
Jimmy C. Tallent
President & CEO
H. Lynn Harton
Chief Operating Officer
Rex S. Schuette
EVP & Chief Financial Officer rex_schuette@ucbi.com (706) 781-2266
David P. Shearrow
EVP & Chief Risk Officer
|
|
|
|
 |
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 income (loss) and net operating earnings (loss) 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 income (loss), diluted earnings (loss) 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 27 Banks and 104 Offices
Third‐largest bank holding company in Georgia
Headquartered in Blairsville, Georgia with 105 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee
1,590 employees
Deposit Market Share(1) Key Statistics as of 12/31/12
Market Banks Offices Deposit Share Rank (billions)
North Georgia 11 22 32% 1 Total assets $6.80 Atlanta MSA 10 37 4 7 Total deposits $5.95 Gainesville MSA 1 5 12 5 Loans $4.18 Coastal Georgia 2 8 4 8 Western North Carolina 1 20 12 3 East Tennessee 2 11 2 9
¹ FDIC deposit market share and rank as of 6/12 for markets where United takes deposits. Source: SNL and FDIC. Excludes 2 Loan Production Offices.
|
|
|
|
 |
5
PERFORMANCE – TRENDS
|
|
|
|
 |
6
Highlights Fourth Quarter
Improving Quarterly Results
Net income of $9.26 million, or 11 cents per share
Sixth quarterly profit in past seven quarters
Core earnings (pre-tax, pre-credit) of $29.1 million
Modest Loan Growth, Both Linked Quarter and Year Ago
Increased commercial and retail lending opportunities
Solid Improvement in All Credit Quality Metrics
Metrics improving across all areas
Strong Core Transaction Deposit Growth
Year-to-date up 11%
Building customer deposit base
Represents 55% of total customer deposits compared to 34% at the end of 2008
|
|
|
|
 |
7
Net Interest Revenue
$ in millions
*Excludes $2 million accrued interest on performing loans sold in connection with the bulk loan sale in 1Q11 that we were not paid for as part of the agreement with the purchaser.
|
|
|
|
 |
8
Core Fee Revenue - Improving
$ in millions
|
|
|
|
 |
9
Core Operating Expenses – Gaining Efficiencies
$ in millions
|
|
|
|
 |
10
Core Deposit Mix - Improving
$ in billions 1Q11 4Q12 $5.91 $5.71
Public Public Funds Funds 11% 13% Core
Transaction Core 46% Time Transaction Time 31% 56% 43%
1Q11 4Q12
Demand / NOW $ 1,576 $ 1,841 MMDA / Savings 1,149 1,372
Core Transaction 2,725 3,213
Time 2,516 1,050 Public Deposits 672 739
Total Deposits 5,913 5,002
|
|
|
|
 |
11
Key Driver of Net Interest Revenue – Loan Growth
Margin Compression Due to
Loan and securities pricing under pressure
Difficult to lower deposit pricing
|
|
|
|
 |
12
Key Drivers of Net Interest Revenue / Margin
Net Interest Revenue Growth
%
Offset margin compression by growing loans
4Q12 impacted by: Overlap of sub-debt (5 bps) Full quarter impact of scheduled repricing of $90 million corporate bonds from fixed to floating rate (5 bps) New/renewed loan repricing, including new
*Excludes $2 million accrued interest on performing loans sold in connection with the bulk loan sale in 1Q11 HELOC program that we were not paid for as part of the agreement with the purchaser.
|
|
|
|
 |
13
New Loans Funded (> $100 Thousand)
$ in millions
Loans ($ bns): $4.163 $4.110 $4.110 $4.128 $4.119 $4.138 $4.175
|
|
|
|
 |
14
Loan Portfolio – Diversifying ($ in billions)
1Q11 4Q12
Retail Retail 31% 33%
C & I C & I 34% 38%
Constr Inv RE Constr
18% 17% 13% Inv RE
16%
1Q11 4Q12
Commercial C&I $ 1.425 $ 1.590 Commercial Inv. RE .698 .682 Construction .763 .536 Retail 1.308 1.367
$ 4.194 $ 4.175
|
|
|
|
 |
15
Core Earnings – Growth Through Fee Revenue / Expense Efficiencies
$ in millions
|
|
|
|
 |
16
Net Income (Loss)
$ in millions
*Includes $25 million provision for large customer relationship
|
|
|
|
 |
17
Non-Performing Assets (NPAs)
$ in millions
$188.8
$160.1 $161.6 $138.1 $145.7 $142.0 $128.2 $118.7
*NPAs to total assets – 1.88% / Allowance to loans at 2.57%
|
|
|
|
 |
18
Non-Performing Loans (NPLs) Inflow Trends 18
$ in millions
Quarterly NPL Inflows Since 2009
89.5%
$193.3 $200.0 $177.7 $174.8 $174.9 Decline
$155.0 from Peak
$150.0 $139.0 $119.8 $103.4 $100.0 $81.0 $54.7 $35.9 $45.7 $50.0 $32.4 $29.4 30.5 20.2 $0.0 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘10 Q2 ‘10 Q3 ‘10 Q4 ‘10 Q1 ‘11 Q2 ‘11 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12
Resi Construction Com. Construction Resi. Mortgage Com. RE Commercial Consumer Single Customer
Total NPLs
|
|
|
|
 |
19
Performing Classified Loans
$ in millions
|
|
|
|
 |
20
OUTLOOK
|
|
|
|
 |
21
Our goal: leverage our strengths
Strong Local Leadership
Funding Advantage in Our Legacy Markets
Consistent and Attractive Culture
Class leading customer satisfaction
Low employee turnover
|
|
|
|
 |
22
To grow our business the right way
Become Better Retail and Small Business Bank
Grow sales: Better product design, merchandising, campaign execution
HELOC program success: $100 million in new balances
Invest in people
|
|
|
|
 |
23
To grow our business the right way
Continue to Invest In, and Improve, Commercial Capabilities
Diversify portfolio – Focus on C&I and owner occupied
Success in Atlanta and Savannah markets
Invest in people: 30 lenders past 2 years ($300 million)
Enter new markets: Opened LPO in Greenville SC (4Q12)
Positive net loan growth going forward
Executed Customer Derivative Swap Program – Meeting Customer Needs and Adding Fee Revenue
|
|
|
|
 |
24
Grow existing fee businesses at faster pace
Mortgage First Priority
Performing well, but at 50% of peers
Focus on home purchase product as well as refinancings
Focus on lower performing markets
Invest in management, people and new markets
$3.26 $2.80 $2.32 $2.10 $1.83
Advisory Services
Customer satisfaction high
Invest in management, people and new markets
|
|
|
|
 |
25
Summary
Focus on Core Earnings Growth – Fee Revenue, Expenses, Efficiencies
Goal for 4Q13 – increase $10 million annually from 4Q12
Offsetting Margin Headwinds Through Loan Growth and Improving Deposit Mix
Goal loan growth in 2013 – 4 to 6 percent
Expecting quarterly margin compression in 2013 – 2 to 4 basis points
Steady Progress on Credit; Improving Through 2013
Charge-offs / provisioning improvement by 4Q13 – 80 to 100 basis points
Solid Strengths – Size, Culture, Capital
Well-Positioned in All Areas for Opportunities
|
|
|
|
 |
26
FINANCIAL REVIEW
|
|
|
|
 |
27
Core Earnings Summary 27
(in thousands)
Variance - Increase / (Decrease) 4Q12 3Q12 4Q11
Net Interest Revenue $ 56,028 $ (1,343) $ (3,022)
Fee Revenue 14,614 1,611 3,172
Gross Revenue 70,642 268 150
Operating Expense (Excl OREO) 41,552 1,029 (2,291)
Pre-Tax, Pre-Credit (Core) $ 29,090 $ (761) $ 2,441Net Interest Margin 3.44 % (.16) % (.07)
|
|
|
|
 |
28
Fee Revenue - Core 28
(in thousands)
Variance - Increase / (Decrease) 4Q12 3Q12 4Q11
Overdraft Fees $ 3,464 $ 102 $ (73) Debit Card Fees 3,701 638 732 Other Service Charges 1,210 (61) 468 Total Service Charges and Fees 8,375 679 1,127 Mortgage Loan & Related Fees 3,262 462 1,437 Brokerage Fees 751 42 (31) Other 2,163 365 576
Total Fee Revenue - Core 14,551 1,548 3,109
Non-Core(1) 210 (551) (1,015)
Reported - GAAP $ 14,761 $ 997 $ 2,094
(1) Includes 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.
|
|
|
|
 |
29
Operating Expenses - Core 29
(in thousands)
Variance - Increase / (Decrease) 4Q12 3Q12 4Q11
Salaries & Employee Benefits $ 22,960 $ 596 $ (2,578) Communications & Equipment 3,320 66 191 Occupancy 3,455 (84) (517) FDIC Assessment 2,505 (32) (94) Advertising & Public Relations 987 53 43 Postage, Printing & Supplies 1,050 96 33 Professional Fees 2,685 505 689 Other Expense 4,527 (234) (121)
Core Operating Expenses 41,489 966 (2,354)
Non-Core(1) 5,237 977 (2,000)
Reported GAAP $ 46,726 $ 1,943 $ (4,354)
(1) Includes 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.
|
|
|
|
 |
30
Net Operating Income 30
(in thousands)
Variance - Increase / (Decrease) 4Q12 3Q12(1) 4Q11 Core Earnings (Pre-Tax, Pre-Credit) $ 29,090 $ (761) $ 2,441
Provision for Loan Loss (14,000) (1,500) -
NON-CORE FEE REVENUE:
Hedge Ineffectiveness Gaines (Losses) 116 (492) (197) Securites Gains (Losses) 31 31 27 Gains from Sale of Low Income Housing Tax Credits - - (728) Gains (Losses) on Deferred Compensation Plan Assets 63 (90) (117)
Total Non-Core Fee Revenue 210 (551) (1,015)
NON-CORE OPERATING EXPENSES:
Foreclosed Property Write Downs 1,438 (956) (2,454) Foreclosed Property (Gains) Losses on Sales 1,750 1,400 (1,291) Forclosed Property Maintenance Expenses 1,423 461 (946) Severance Costs 563 162 563 Reclassification of Pension Actuarial Gains to AOCI - - 2,245 Gains (Losses) on Deferred Comp Plan Liability 63 (90) (117)
Total Non-Core Operating Expenses 5,237 977 (2,000)
Income Tax (Expense) Benefit (802) 518 (4,066)
Net Income $ 9,261 $ (1,307) $ (640)
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31
Net Income 31
(in thousands)
Variance - Increase / (Decrease) 4Q12 3Q12 4Q11 Net Income $ 9,261 $ (1,307) $ (640)
Preferred Stock Dividends (3,045) (4) (20)
Net Income Avail to Common Shareholders $ 6,216 $ (1,311) $ (660)
Net Income Per Share $ .11 $ (.02) $ (.01)
Tangible Book Value $ 6.64 $ - $ .17
(DTA Allowance $272 Million - $4.70 / Share)
Shares Outstanding (millions) 58.0 .1 .3
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32
Earnings Summary 2012 Full Year
(in millions)
Over/(Under) Full Year 2012 2011
Net Interest Revenue $ 229.1 $ (6.6) Fee Revenue 53.5 9.3 Operating Expense (Excl OREO) (166.1) 14.2 Core Earnings (Pre-Credit) 116.5 16.9
Provision for Loan Losses (62.5) (16.5)
-Fletcher - 25.0 Asset Disposition Plan - 246.2
NON-CORE FEE REVENUE:
Sec Gains (Losses), Net of Prepmt Losses .4 .3 Tax Credit Sale/IRS Refund 1.8 1.1 Hedge Ineffectiveness .7 (4.3)
Total Non-Core Fee Revenue 2.9 (2.9)
NON-CORE OPERATING EXPENSE:
Foreclosed Property Costs (OREO) (14.0) 4.3 Severance, Modified Retirement (2.3) (3.4)
Total Non-Core Operating Expense (16.3) .9
Income Taxes (2.7) (5.0) Net Income $ 37.9 $ 264.6
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33
Net Income Summary 2012 Actual – Full Year
(in thousands)
Full Year Over/(Under) 2012 2011 Net Income $ 37,856 $ 264,602
Earnings per Share $ .44 $ 6.41 Margin 3.50 % .06
Return on Equity 6.43 %
Return on Tangible Equity 7.29
Return on Assets .55
Operating Efficiency 64.02 -Core (Excl. OREO) 58.77
Tangible Book Value $ 6.64 .17
-Book Value DTA Recovery $271 M illion or $4.69 /Share
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34
Fee Revenue – Core 2012 Full Year
(in millions)
Over / 2012 2011 (Under)
NSF & Bounce Safe Fees $ 13.3 $ 14.2 $ (.9) Interchange Income 13.1 12.1 1.0 Other Service Charges 5.3 2.8 2.5 Mortgage Loan & Related Fees 10.5 5.4 5.1 Advisory Services 3.1 3.0 .1 Other 8.2 6.7 1.5
Core 53.5 44.2 9.3
Non-Core(1) 3.3 5.7 (2.4)
Reported-GAAP $ 56.8 $ 49.9 $ 6.9
(1) Excludes Securities Gains (Losses), Hedge Ineffectiveness Gains
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35
Operating Expenses – Core 2012 Full Year
(in millions)
Over / 2012 2011 (Under)
Salaries & Employee Benefits $ 93.2 $ 101.3 $ (8.1) Communications & Equipment 12.9 13.1 (.2) Occupancy 14.3 15.6 (1.3) FDIC Assessment 10.1 14.3 (4.2) Advertising & Public Relations 3.9 4.3 (.4) Postage, Printing & Supplies 3.9 4.3 (.4) Professional Fees 8.8 8.7 .1 Other Expense 19.0 18.7 .3
Core 166.1 180.3 (14.2)
Non-Core(1) 16.7 81.3 (64.6)
Reported-GAAP $ 182.8 $ 261.6 $ (78.8)
(1) Excludes Securities Gains (Losses), Hedge Ineffectiveness Gains
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36
Deposit Pricing, Excluding Brokered Deposits 36
Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter
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37
Customer Deposit Mix Improving 37
(in millions)
4Q12
56% $5.7B
Public
Demand &
4Q12 3Q12 4Q11 4Q08 Funds
NOW
Demand / NOW $ 1,841 $ 1,796 $ 1,674 $ 1,457 Time 14%
32%
MMDA / Savings 1,372 1,342 1,228 630 >$100k 12%
Core Transaction 3,213 3,138 2,902 2,087
Time
11% Growth - $311 Million <$100k MMDA & 18% Sav.
24%
54% Growth
Customer
Time < $100,000 1,050 1,118 1,326 1,945 4Q08 Public Deposits 739 612 844 755 $6.2B
Total Core 5,002 4,868 5,072 4,787 Public
Funds Demand &
14% 34% NOW
Time >$100,000 674 699 807 1,336
23%
Public Deposits 31 32 40 87
Time >$100k
Total Customer 5,707 5,599 5,919 6,210 22%
MMDA & Sav.
10%
Brokered Deposits 245 224 179 793
Total Deposits $ 5,952 $ 5,823 $ 6,098 $ 7,003 Time <$100k 31%
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38
Core Deposit Growth – Category and Market 38
(in millions, excluding public)
Growth
Year CATEGORY 4Q12 2012
Demand $ 34.3 $ 232.2 MM Accounts 24.7 115.1 Savings 4.9 28.8 NOW 11.3 (65.4) Total Categories $ 75.2 $ 310.7
Percent Growth (Annualized) 10 % 11 %
MARKET
Atlanta $ 44.1 $ 159.9 North Carolina 2.2 46.8 Coastal Georgia 18.4 37.9 N. Georgia 4.4 41.4 Tennessee (3.8) 8.8 Gainesville 9.9 15.9 Total Markets $ 75.2 $ 310.7
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39
Capital Ratios 39
Well-
Capitalized DEC ‘12 SEP ‘12 JUN ‘12 Bank Tier 1 RBC 6 % 14.6 % 14.5 % 14.4 % Total RBC 10 15.8 15.7 15.7 Leverage 5 9.9 9.9 9.2
Holding Company
Tier 1 RBC 6 14.2 14.3 14.3 Total RBC 10 15.8 15.8 16.0 Leverage 5 9.7 9.8 9.2 Tier I Common RBC 8.9 8.8 8.8
Tangible Equity to Assets 8.6 8.7 8.2 Tangible Common to Assets 5.7 5.7 * 5.5
*DTA Allowance of $271 million; when reversed adds 3.6%
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40
LOAN PORTFOLIO & CREDIT QUALITY
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41
Loan Portfolio (total $4.18 billion)
$1.21B Residential Mortgage
o n
29% t i
u c
B t r
. 38 n s $ o lC t i a % n 9 d e i es
R
$2.43B Commercial 58%
4Q12 3Q12 2Q12 1Q12 4Q11
Total Loans $4.18 $4.14 $4.12 $4.13 $4.11
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42
New Loans Funded (> $100 Thousand) – Category and Market
(in millions)
Year Year CATEGORY 4Q12 2012 MARKET 4Q12 2012
Commercial C & I $ 18.9 $ 80.9 Atlanta $ 49.0 $ 181.9 Owner Occupied CRE 47.4 150.0 Coastal Georgia 31.7 88.3 Income Producing CRE 13.4 57.0 N. Georgia 33.5 116.8 Commercial Constr. 1.9 12.4 North Carolina 12.6 40.0 Total Commercial 81.6 300.3 Tennessee 12.4 54.0 Residential Mortgage 29.7 100.7 Gainesville 10.6 24.2 Residential HELOC 26.9 68.1 Total Markets $ 149.8 $ 505.2 Residential Construction 10.4 31.1 Consumer 1.2 5.0 Total Categories $ 149.8 $ 505.2
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43
Commercial Loans (total $2.43 billion)
6% 19% Comm C & I Const $.46B $.15B
28% Income Producing $.68B
47% Owner Occupied $1.13B
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44 44
Commercial Real Estate (by loan type)
December 31, 2012 Portfolio Characteristics
Owner Income
(in millions) Occupied Producing Total Percent Office Buildings $ 300 $ 198 $ 498 25 %
Multi-Residential/Other Properties 148 119 267 15 62.4% owner-occupied Small Warehouses/Storage 114 66 180 10 Retail 36 113 149 8 Churches 135 - 135 7 Small business, doctors, Convenience Stores 88 17 105 6 dentists, attorneys, CPAs Hotels/Motels - 84 84 5 Franchise / Restaurants 37 35 72 4 Farmland 59 - 59 3 $12 million project limit Manufacturing Facility 49 7 56 3 Auto Dealership/Service 42 10 52 3 Golf Course/Recreation 33 - 33 2 Average Loan Size Leasehold Property 17 16 33 2 Daycare Facility 16 9 25 2 o $469 Composite CRE Carwash 17 - 17 1 Funeral Home 16 1 17 1 o $427 Owner Occupied Movie TheaterBowling/Recreation 15 - 15 1 Marina 9 - 9 1 o $606 Income Producing Mobile Home Parks - 7 7 1 Total $ 1,131 $ 682 $ 1,813
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45 45
Commercial Construction (by loan type)
December 31, 2012 (in millions) Amount Percent
Land Develop - Vacant (Improved) $ 65 42 % Portfolio Characteristics Raw Land - Vacant (Unimproved) 42 27 Commercial Land Development 21 14 Office Buildings 8 5 Average loan size: $414k Churches 5 3 Warehouse 2 1 Hotels/Motels 1 1 Convenience Stores 1 1 Miscellaneous Construction 10 6 Total Commercial Construction $ 155 100 %
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46
Residential Mortgage (total $1.21 billion)
Home Equity 32% $.38B
Avg loan size $48k
Origination Characteristics
■ No broker loans
■ Policy Max LTV: 80-85%
■ 62% of HE Primary Lien
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47
Residential Construction (total $.38 million)
a L d n
12% Raw $45
51% 16% Lot Developing $193 $62
10% Sold $40
11% Spec $41
Average Loan Size (in thousands)
Spec $227 Sold 122 Develop 560 Raw Land115
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48
Residential Construction – Total Company
4Q12 vs. (in millions) 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
Land Loans
Developing Land $ 62 $ 71 $ 78 $ 86 $ 88 $ (26) Raw Land 46 41 45 57 61 (15) Lot Loans 193 196 203 204 207 (14)
Total 301 308 326 347 356 (55)
Construction Loans
Spec 41 44 49 57 59 (18) Sold 40 37 34 32 33 7
Total 81 81 83 89 92 (11) Total Res Construction $ 382 $ 389 $ 409 $ 436 $ 448 $ (66)
By Region
Atlanta $ 66 $ 68 $ 76 $ 86 $ 86 $ (20) Gainesville MSA 17 17 19 20 20 (3) North Georgia 183 184 193 206 214 (31) North Carolina 82 85 87 88 91 (9) Coastal Georgia 11 23 22 23 24 (13) Tennessee 23 12 12 13 13 10
Total Res Construction $ 382 $ 389 $ 409 $ 436 $ 448 $ (66)
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49
Credit Quality 49
(in millions)
4Q12 3Q12 2Q12 1Q12 4Q11 Net Charge-offs(1) $ 14.5 $ 20.6 $ 18.9 $ 15.9 $ 20.6
as % of Average Loans(1) 1.39 % 1.99 % 1.85 % 1.55 % 1.99 %
Allowance for Loan Losses $ 107.1 $ 107.6 $ 112.7 $ 113.6 $ 114.5
as % of Total Loans 2.57 % 2.60 % 2.74 % 2.75 % 2.79 % as % of NPLs 97 94 98 88 90
Past Due Loans (30 89 Days) .65 % .68 % .65 % .86 % .75 %
Non-Performing Loans $ 109.9 $ 115.0 $ 115.4 $ 129.7 $ 127.5 OREO 18.3 27.0 30.4 31.9 32.8 Total NPAs 128.2 142.0 145.8 161.6 160.3
Performing Classified Loans 261.9 284.0 324.0 317.0 328.0 Total Classified Assets $ 390.1 $ 426.0 $ 469.8 $ 478.6 $ 488.3
Accruing TDRs (see page 48) $ 122.8 $ 138.3 $ 141.6 $ 125.8 $ 105.8
As % of Original Principal Balance
Non-Performing Loans 69.5 % 68.8 % 68.8 % 70.6 % 71.3 % OREO 39.7 36.4 39.3 36.1 35.9
Total NPAs as % of Total Assets 1.88 2.12 2.16 2.25 2.30 as % of Loans & OREO 3.06 3.41 3.51 3.88 3.87
(1) Excludes $25 million of charge-offs for largest loan relationship in 4Q11.
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50
Performing Classified Loans 50
(in millions)
LOANS BY CATEGORY 4Q12 3Q12 2Q12 1Q12 4Q11
Commercial (Sec. by RE):
Owner Occupied $ 65 $ 77 $ 54 $ 78 $ 79 Income Producing 53 49 94 56 64 Total Comm (Sec. by RE) 118 126 148 134 143 Commercial & Industrial 18 19 16 17 16 Commercial Construction 19 27 38 23 18
Total Commercial 155 172 202 174 177
Residential Mortgage 65 73 73 76 76 Residential Construction 38 35 46 64 72 Consumer / Installment 4 3 3 3 3
Total Classified Loans $ 262 $ 283 $ 324 $ 317 $ 328
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51
TDRs by Loan Type
(in thousands)
LOAN TYPE Accruing(1) Non-Accruing Total TDRs As of December 31, 2012
Commercial (Sec by RE) $ 63,975 $ 12,216 $ 76,191 Commercial & Industrial 7,053 198 7,251 Commercial Construction 16,370 17,439 33,809 Total Commercial 87,398 29,853 117,251 Residential Mortgage 17,210 2,086 19,296 Residential Construction 17,853 5,932 23,785 Consumer Installment 309 122 431 Total $ 122,770 $ 37,993 $ 160,763
(1) ___ percent of accruing TDR loans have an interest rate of 4 percent of greater.
As of September 30, 2012
Commercial (Sec by RE) $ 72,042 $ 8,530 $ 80,572 Commercial & Industrial 6,960 239 7,199 Commercial Construction 24,016 11,850 35,866 Total Commercial 103,018 20,619 123,637 Residential Mortgage 16,041 1,446 17,487 Residential Construction 18,922 5,850 24,772 Consumer Installment 337 99 436 Total $ 138,318 $ 28,014 $ 166,332
(1) 75 percent of accruing TDR loans have an interest rate of 4 percent of greater
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52
Net Charge-offs by Loan Category 52
(in thousands)
4Q12 % of Average Loans (Annualized)
% of Avg
Total Loans 3Q12 2Q12 1Q12 4Q11(1) Commercial (Sec. by RE): Owner Occupied $ 4,997 1.76 % 3.56 % .46 % .87 % 1.16 % Income Producing 1,153 .67 .70 1.75 .70 .57 Total Comm (Sec. by RE) 6,150 1.35 1.79 .95 .81 .90 Commercial & Industrial 135 .12 (.23) .70 .62 1.08 Commercial Construction 1,688 4.25 7.74 .21 .81 1.75 Total Commercial 7,973 1.30 1.81 .86 .78 1.06
Residential Mortgage 3,254 1.55 1.40 .70 1.98 2.13 Home Equity LOC 445 .49 .80 2.60 1.70 1.79 Residential Construction 2,435 2.52 5.69 9.14 4.84 6.77 Consumer/ Installment 398 1.10 .78 .88 1.72 1.47 Total Net Charge-offs $ 14,505 1.39 1.99 1.85 1.55 1.99
(1) Excludes charge-offs for largest loan relationship of Commerical Construction $2,863; Commercial & Industrial $17,046; CRE Income Producing $901; and, Residential Construction
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53
Net Charge-offs by Market 53
(in millions)
4Q12 % of Average Loans (Annualized)
% of Avg
Total Loans 3Q12 2Q12 1Q12 4Q11(1) North Georgia $ 4,474 1.26 % 1.84 % 3.58 % 2.56 % 2.70 % Atlanta MSA 3,977 1.27 3.02 .75 .89 1.37 North Carolina 2,032 1.39 1.15 2.52 1.14 2.10 Coastal Georgia 574 .60 2.67 .23 1.53 .41 Gainesville MSA 1,331 2.04 .45 (.29) 1.35 3.84 East Tennessee 2,117 2.98 .45 .68 .34 .59
Total $ 14,505 1.39 1.99 1.85 1.55 1.99
(1) Excludes charge-offs for largest loan relationship of in North Georgia of $25,000
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54
NPAs by Loan Category and Market 54
(in thousands)
4Q12 4Q12
NPLs OREO Total NPAs NPLs OREO Total NPAs
LOAN CATEGORY MARKETS
Commercial (sec. by RE): North Georgia $ 69,950 $ 8,219 $ 78,169 Owner Occupied $ 12,599 $ 4,989 $ 17,588 Atlanta MSA 18,556 3,442 21,998 Income Producing 9,549 490 10,039 North Carolina 11,014 2,579 13,593 Commercial & Industrial 31,817 - 31,817 Coastal Georgia 3,810 1,609 5,419 Commercial Construction 23,843 2,204 26,047 Gainesville MSA 903 556 1,459 Total Commercial 77,808 7,683 85,491 East Tennessee 5,661 1,859 7,520
Total $ 109,894 $ 18,264 $ 128,158
Residential Mortgage 12,589 4,753 17,342 Residential Construction 18,702 5,828 24,530 Consumer/ Installment 795 - 795
Total $ 109,894 $ 18,264 $ 128,158
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55
APPENDIX
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56
Experienced Proven Leadership 56
Joined Years in UCBI Banking
Jimmy Tallent President & CEO 1984 38 Lynn Harton Chief Operating Officer 2012 29 Rex Schuette Chief Financial Officer 2001 35 David Shearrow Chief Risk Officer 2007 31 Bill Gilbert Director of Banking 2000 36 Tim Schools Chief Strategy Officer 2011 12 Ray Skinner Retail Banking 2012 22
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57
Business and Operating Model 57
Twenty-seven “community banks”
Local CEOs with deep roots in their communities
Resources of $6.80 billion bank
Service is point of differentiation
#1 in Customer Satisfaction according to Customer Service Profiles
J.D. Power Customer Service Champion for 2011
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
“Community bank service, large bank resources”
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58 58
Robust Demographics (fast growing markets)
Population Growth (%) Population Actual Projected Markets1 (in thousands) 2000 - 2011 2011 - 2016
North Georgia 386 21 % 4 % Atlanta, GA MSA 5,321 25 5 Gainesville, GA MSA 181 30 4 Coastal Georgia 385 15 5 Western North Carolina 441 15 5 East Tennessee 862 14 5 Greenville-Mauldin-Easley, SC MSA 645 15 6
Total Markets
Georgia 9,775 19 5 North Carolina 9,659 20 7 South Carolina 4,682 17 6 Tennessee 6,402 13 4 United States 310,704 10 3
¹ Population data is for 2011 and includes those markets where United takes deposits. No deposits in SC.
Source: SNL
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59
Market Share Opportunities 59
Excellent growth prospects
Market United
Deposits Deposits Deposit
Markets (in billions)(1) (in billions)(2) Banks Offices Share(1) Rank(1)
North Georgia $ 6.4 $ 2.0 11 22 32 % 1 Western North Carolina 6.4 .9 1 20 12 3 Gainesville MSA 2.6 .3 1 5 12 5 Atlanta MSA 50.2 2.1 10 37 4 7 Coastal Georgia 7.3 .3 2 8 4 8 East Tennessee 16.0 .3 2 11 2 9
Total Markets $ 88.9 $ 5.9 27 103
¹ FDIC deposit market share and rank as of 6/12 for markets where United takes deposits. Source: SNL and FDIC.
2 Based on current quarter.
3 Excludes two loan production offices
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60
Leading Demographics 60
2011 ‐ 2016 Total Assets Population Rank Ticker Company(1) State ($B) Growth(2)
1 CFR Cullen/Frost Bankers, Inc. TX 21.8 8.41
2 IBOC International Bancshares Corporation TX 12.1 7.08
3 HBHC Hancock Holding Company MS 18.5 6.94
4 PB Prosperity Bancshares, Inc. TX 13.7 6.21
5 FCNCA First Citizens BancShares, Inc. NC 21.2 6.18
6 GBCI Glacier Bancorp, Inc. MT 7.6 5.69
7 FIBK First Interstate BancSystem, Inc. MT 7.5 5.44
8 TCBI Texas Capital Bancshares, Inc. TX 9.9 5.12
9 UCBI United Community Banks, Inc. GA 6.8 5.05
10 CBF Capital Bank Financial Corporation FL 6.2 4.99
11 FCBN First Citizens Bancorporation, Inc. SC 8.3 4.94
12 BOKF BOK Financial Corporation OK 27.1 4.72
13 IBKC IBERIABANK Corporation LA 12.5 4.64
14 WAL Western Alliance Bancorporation AZ 7.4 4.50
15 STSA Sterling Financial Corporation WA 9.5 4.10
NOTE: Financial information as of September 30, 2012
(1) Includes publicly traded companies with assets between $5.0 ‐ $50.0 billion as of September 30, 2012
(2) Population growth weighted by county (cumulative) Data Source: SNL Financial
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61
Loans / Deposits - Liquidity 61
(in millions)
Variance 4Q12 3Q12 4Q11 vs 3Q12 vs 4Q11
Loans $ 4,175 $ 4,138 $ 4,110 $ 37 $ 65
Core (DDA, MMDA, Savings) $ 3,213 $ 3,138 $ 2,902 $ 75 $ 311 Public Funds 770 644 884 126 (114) CD’s 1,724 1,817 2,133 (93) (409) Total Deposits (excl Brokered) $ 5,707 $ 5,599 $ 5,919 $ 108 $ (212)
Loan to Deposit Ratio 73% 74% 69%
Investment Securities:
Available for Sale -Fixed $ 1,126 $ 1,002 $ 1,227 $ 124 $ (101) -Floating 712 760 563 (48) 149 Held to Maturity -Fixed 222 239 300 (17) (78) -Floating 22 24 30 (2) (8) Total Investment Securities 2,082 2,025 2,120 57 (38)
Percent of Assets (Excludes Floating) 20% 19% 22%
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62
Wholesale Borrowings - Liquidity 62
(in millions)
Unused Variance Capacity 4Q12 3Q12 4Q11 vs 3Q12 vs 4Q11
Wholesale Borrowings
(1)
Brokered Deposits $ 1,455 $ 245 $ 233 $ 179 $ 12 $ 66 FHLB 1,123 40 50 41 (10) (1) Fed Funds 130 - - - - -Other Wholesale - 53 53 103 - (50)
Total $ 2,708 $ 338 $ 336 $ 323 $ 2 $ 15
Long-Term Debt
Senior Debt $ 35 $ - $ - $ 35 $ 35 Sub-Debt 35 65 65 (30) (30) Trust Preferred Securities 55 55 55 - -
Total Long-Term Debt $ 125 $ 120 $ 120 $ 5 $ 5
(1) Estimated Brokered Deposit Total Capacity at 25% of Assets
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63
Deposits 63 Business Mix – at quarter-end
(in millions)
4Q12 vs. DEPOSITS BY CATEGORY 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
Demand & Now $ 1,841 $ 1,796 $ 1,735 $ 1,722 $ 1,674 $ 167 MMDA & Savings 1,372 1,342 1,330 1,331 1,228 144
Core Transaction Deposits 3,213 3,138 3,065 3,053 2,902 311
Time < $100,000 1,050 1,118 1,159 1,201 1,326 (276) Time $100,000 < $250,000 547 598 625 654 694 (147) Public Deposits 739 612 623 782 844 (105) Total Core Deposits 5,549 5,466 5,472 5,690 5,766 (217)
Time $250,000 127 101 103 105 113 14 Public Deposits 31 32 36 38 40 (9)
Total Customer Deposits 5,707 5,599 5,611 5,833 5,919 (212)
Brokered Deposits 245 224 211 168 179 66
Total Deposits $ 5,952 $ 5,823 $ 5,822 $ 6,001 $ 6,098 $ (146)
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64
Core Transaction Deposits 64
Geographic Diversity
Core Transactions / Total Deposits (%) 4Q12 4Q11
4Q 11 4Q 12
$ in millions Coastal GA 67.8 % 43.2 %
East Tennessee
Gainesville MSA 63.7 56.8 North Carolina 58.9 52.9
Coastal Georgia
Atlanta MSA 59.9 51.0 East TN 57.9 53.2
Gainesville MSA
North Georgia 54.8 48.7
North Carolina Total 56.3 % 49.0 %
North Georgia
Atlanta MSA
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65
Margin – Credit Costs 65
.26%
Credit Costs .23% Impacting Margin
.19% .19% Historically 8 to 12 bps
.17%
Cost 4Q12 vs. Historical –5 bps (annual earnings impact of $3.2 million)
1 bps = $648 thousand in NIR
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66
Proactively Addressing Credit Environment 66
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: o Weekly past due meetings o Weekly NPA/ORE meetings o Quarterly criticized watch loan review meetings o 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
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67
Lending – Credit Summary 67
(in millions)
Legal lending limit $163
House lending limit 20 Project lending limit 12
Top 25 relationships 371 Regional credit review – Standard underwriting
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68
Business Mix Loans 68
(at quarter-end)
(in millions)
4Q12 vs. LOANS BY CATEGORY 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
Commercial (Sec. by RE):
Owner Occupied $ 1,131 $ 1,126 $ 1,140 $ 1,137 $ 1,111 $ 20 Income Producing 682 693 697 706 711 (29) Total Comm (Sec. by RE) 1,813 1,819 1,837 1,843 1,822 (9) Commercial & Industrial 458 460 450 440 428 30 Commercial Construction 155 161 169 167 164 (9)
Total Commercial 2,426 2,440 2,456 2,450 2,414 12
Residential Mortgage 1,214 1,174 1,128 1,131 1,135 79 Residential Construction 382 389 409 436 448 (66) Consumer / Installment 153 135 126 111 113 40
Total Loans $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110 $ 65
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69 69
Loans – Markets Served (at quarter-end)
(in millions)
4Q12 vs. LOANS BY MARKET 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
North Georgia $ 1,364 $ 1,383 $ 1,387 $ 1,408 $ 1,426 $ (62) Atlanta MSA 1,288 1,257 1,252 1,239 1,220 68 North Carolina 579 579 576 588 597 (18) Coastal Georgia 400 380 369 366 346 54 Gainesville MSA 261 256 259 262 265 (4) East Tennessee 283 283 276 265 256 27
Total Loans $ 4,175 $ 4,138 $ 4,119 $ 4,128 $ 4,110 $ 65
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70
Residential Construction – North Georgia 70
(in millions)
4Q12 vs. 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
Land Loans
Developing Land $ 30 $ 33 $ 39 $ 44 $ 44 $ (14) Raw Land 17 17 18 26 26 (9) Lot Loans 112 111 113 113 118 (6)
Total 159 161 170 183 188 (29)
Construction Loans
Spec 7 8 9 12 12 (5) Sold 17 15 14 11 14 3
Total 24 23 23 23 26 (2)
Total Res Construction $ 183 $ 184 $ 193 $ 206 $ 214 $ (31)
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71
Residential Construction – Atlanta MSA 71
(in millions)
4Q12 vs. 4Q12 3Q12 2Q12 1Q12 4Q11 4Q11
Land Loans
Developing Land $ 13 $ 14 $ 14 $ 17 $ 17 $ (4) Raw Land 9 9 9 13 14 (5) Lot Loans 16 18 22 22 22 (6)
Total 38 41 45 52 53 (15)
Construction Loans
Spec 20 19 24 27 27 (7) Sold 8 8 7 7 6 2
Total 28 27 31 34 33 (5)
Total Res Construction $ 66 $ 68 $ 76 $ 86 $ 86 $ (20)
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72 72
Business Mix Loans (at year-end)
(in millions)
2012 2011 2010 2009 2008 LOANS BY CATEGORY
Commercial (Sec. by RE) $ 1,813 $ 1,822 $ 1,761 $ 1,779 $ 1,627 Commercial & Industrial 458 428 441 390 410 Commercial Construction 155 164 297 363 500
Total Commercial 2,426 2,414 2,499 2,532 2,537
Residential Mortgage 1,214 1,135 1,279 1,427 1,526 Residential Construction 382 448 695 1,050 1,479 Consumer / Installment 153 113 131 142 163
Total Loans $ 4,175 $ 4,110 $ 4,604 $ 5,151 $ 5,705
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73 73
Loans – Markets Served (at year-end)
(in millions)
2012 2011 2010 2009 2008 LOANS BY MARKET
North Georgia $ 1,364 $ 1,426 $ 1,689 $ 1,884 $ 2,040 Atlanta MSA 1,288 1,220 1,310 1,435 1,706 North Carolina 579 597 702 772 810 Coastal Georgia 400 346 335 405 464 Gainesville MSA 261 265 312 390 420 East Tennessee 283 256 256 265 265
Total Loans $ 4,175 $ 4,110 $ 4,604 $ 5,151 $ 5,705
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74
NPAs by Loan Category, Market, and Activity 74
Credit Quality (1)
Fourth Quarter 2012 Third Quarter 2012 Second Quarter 2012
Non-performing Foreclosed Total Non-performing Foreclosed Total Non-performing Foreclosed Total (in thousands) Loans Properties NPAs Loans Properties NPAs Loans Properties NPAs NPAs BY CATEGORY
Owner occupied CRE $ 12,599 $ 4,989 $ 17,588 $ 14,140 $ 7,170 $ 21,310 $ 9,399 $ 7,914 $ 17,313 Income producing CRE 9,549 490 10,039 11,756 1,597 13,353 9,716 2,672 12,388 Commercial & industrial 31,817 - 31,817 32,678 - 32,678 34,982 - 34,982 Commercial construction 23,843 2,204 26,047 18,590 3,121 21,711 18,175 2,732 20,907 Total commercial 77,808 7,683 85,491 77,164 11,888 89,052 72,272 13,318 85,590 Residential mortgage 11,151 4,753 15,904 12,629 6,031 18,660 15,272 5,591 20,863 Home equity lines of credit 1,438 - 1,438 1,367 - 1,367 1,359 - 1,359 Residential construction 18,702 5,828 24,530 22,935 9,039 31,974 25,530 11,512 37,042 Consumer installment 795 - 795 906 - 906 907 - 907 Total NPAs $ 109,894 $ 18,264 $ 128,158 $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761
Balance as a % of
Unpaid Principal 69.5% 39.7% 62.8% 68.8% 36.4% 58.8% 68.8% 39.3% 59.4%
NPAs BY MARKET
North Georgia $ 69,950 $ 8,219 $ 78,169 $ 72,211 $ 14,582 $ 86,793 $ 77,332 $ 13,546 $ 90,878 Atlanta MSA 18,556 3,442 21,998 21,349 5,926 27,275 17,593 8,651 26,244 North Carolina 11,014 2,579 13,593 9,622 2,771 12,393 10,657 3,287 13,944 Coastal Georgia 3,810 1,609 5,419 6,822 864 7,686 5,822 785 6,607 Gainesville MSA 903 556 1,459 840 1,328 2,168 991 2,998 3,989 East Tennessee 5,661 1,859 7,520 4,157 1,487 5,644 2,945 1,154 4,099 Total NPAs $ 109,894 $ 18,264 $ 128,158 $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761
NPA ACTIVITY
Beginning Balance $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761 $ 129,704 $ 31,887 $ 161,591 Loans placed on non-accrual 20,211 - 20,211 30,535 - 30,535 29,364 - 29,364 Payments received (6,458) - (6,458) (3,646) - (3,646) (15,027) - (15,027) Loan charge-offs (11,722) - (11,722) (19,227) - (19,227) (19,382) - (19,382) Foreclosures (7,138) 7,138 - (8,001) 8,001 - (9,319) 9,319 -Capitalized costs - 201 201 - 102 102 - 415 415 Note / property sales - (12,845) (12,845) - (8,822) (8,822) - (10,461) (10,461) Write downs - (1,438) (1,438) - (2,394) (2,394) - (1,008) (1,008) Net gains (losses) on sales - (1,750) (1,750) - (350) (350) - 269 269 Ending Balance $ 109,894 $ 18,264 $ 128,158 $ 115,001 $ 26,958 $ 141,959 $ 115,340 $ 30,421 $ 145,761
(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
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75
Net Charge-offs by Category and Market 75
Credit Quality (1)
Fourth Quarter 2012 Third Quarter 2012 Second Quarter 2012 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
Owner occupied CRE $ 4,997 1.76 % $ 6,192 3.56 % $ 1,305 .46 % Income producing CRE 1,153 .67 1,982 .70 3,044 1.75 Commercial & industrial 135 .12 (259) (.23) 775 .70 Commercial construction 1,688 4.25 3,190 7.74 88 .21 Total commercial 7,973 1.30 11,105 1.81 5,212 .86 Residential mortgage 3,254 1.55 2,846 1.40 1,971 .70 Home equity lines of credit 445 .49 681 .80 1,891 2.60 Residential construction 2,435 2.52 5,676 5.69 9,563 9.14 Consumer installment 398 1.10 255 .78 259 .88 Total $ 14,505 1.39 $ 20,563 1.99 $ 18,896 1.85
NET CHARGE-OFFS BY MARKET
North Georgia $ 4,474 1.26 % $ 6,451 1.84 % $ 12,474 3.58 % Atlanta MSA 3,977 1.27 9,344 3.02 2,307 .75 North Carolina 2,032 1.39 1,674 1.15 3,634 2.52 Coastal Georgia 574 .60 2,486 2.67 211 .23 Gainesville MSA 1,331 2.04 294 .45 (187) (.29) East Tennessee 2,117 2.98 314 .45 457 .68 Total $ 14,505 1.39 $ 20,563 1.99 $ 18,896 1.85
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
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76
Net Charge-offs by Category and Market 76 Asset Disposition Plan as of March 31, 2011
Credit Quality - Net Charge-Offs First Quarter 2011 (1)
Asset Disposition Plan
Bulk Loan Sale (2) First Quarter Performing Nonperforming Other Bulk Loan Foreclosure Other Net 2011 Net Charge-(in thousands) Loans Loans Sales (3) Charge-Offs (4) Charge-Offs 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.
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77 77
Credit Quality – Bulk Loan Sale Summary as of March 31, 2011
Credit Quality - Bulk Loan Sale Summary (1)
Performing Loans Nonperforming Loans Total Loans
Carrying Charge- Loans Held Carrying Charge- Loans Held Carrying Charge- Loans Held (in thousands) Amount (2) Offs (3) for Sale (4) Amount (2) Offs (3) for Sale (4) Amount (2) Offs (3) 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.
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78
Non GAAP Reconciliation Tables 78
(in thousands except EPS)
Operating Earnings to GAAP Earnings Reconciliation
4Q12 3Q12 2Q12 1Q12
Core net interest revenue reconciliation
Core net interest revenue $ 56,028 $ 57,371 $ 56,836 $ 58,864 Interesst reversed on performing loans included in bulk sale - - - -Taxable equivalent adjustment (381) (419) (444) (446) Net interest revenue (GAAP) $ 55,647 $ 56,952 $ 56,392 $ 58,418
Core fee revenue reconciliation
Core fee revenue $ 14,551 $ 13,003 $ 12,764 $ 13,091 Securities gains, net 31 - 6,490 557 Loss on prepayment of borrowings - - (6,199) (482) Gains from sales of low income housing tax credits - - - 728 Hedge ineffectiveness gains (losses) 116 608 (180) 115 Interest on Federal tax refund - - - 1,100 Mark to market on deferred compensation plan assets 63 153 (8) 270 Fee revenue (GAAP) $ 14,761 $ 13,764 $ 12,867 $ 15,379
Core operating expense reconciliation
Core operating expense $ 41,489 $ 40,523 $ 41,312 $ 42,670 Foreclosed property expense 4,611 3,706 1,851 3,825 Severance 563 401 1,155 190 Reclassification of pension actuarial gains and losses and prior service costs to OCI - - - -Professional fees incurred in connection with Bulk Loan Sale Property taxes paid on collateral for loans in Bulk Loan Sale Mark to market on deferred compensation plan liability 63 153 (8) 270 Operating expense (GAAP) $ 46,726 $ 44,783 $ 44,310 $ 46,955
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79
Non GAAP Reconciliation Tables 79
(in thousands except EPS)
Operating Earnings to GAAP Earnings Reconciliation
4Q11 3Q11 2Q11 1Q1
Core net interest revenue reconciliation
Core net interest revenue $ 59,050 $ 59,281 $ 58,946 $ 58,406 Interesst reversed on performing loans included in bulk sale - - - (2,014) Taxable equivalent adjustment (423) (420) (429) (435) Net interest revenue (GAAP) $ 58,627 $ 58,861 $ 58,517 $ 55,957
Core fee revenue reconciliation
Core fee revenue $ 11,442 $ 11,309 $ 11,096 $ 10,352 Securities gains, net 4 - 783 55 Loss on prepayment of borrowings - - (791) -Gains from sales of low income housing tax credits 728 - - -Hedge ineffectiveness gains (losses) 313 575 2,810 1,303 Interest on Federal tax refund - - - -Mark to market on deferred compensation plan assets 180 (386) 7 128 Fee revenue (GAAP) $ 12,667 $ 11,498 $ 13,905 $ 11,838
Core operating expense reconciliation
Core operating expense $ 43,843 $ 44,093 $ 45,680 $ 46,644 Foreclosed property expense 9,302 2,813 1,891 64,899 Severance - - 1,150 -Reclassification of pension actuarial gains and losses and prior service costs to OCI (2,245) - - -Professional fees incurred in connection with Bulk Loan Sale - - 1,000 Property taxes paid on collateral for loans in Bulk Loan Sale - - 2,600 Mark to market on deferred compensation plan liability 180 (386) 7 128 Operating expense (GAAP) $ 51,080 $ 46,520 $ 48,728 $ 115,271
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80
Non GAAP Reconciliation Tables 80
Operating Earnings to GAAP Earnings Reconciliation
4Q12 3Q12 2Q12 1Q12
Net interest margin - pre credit reconciliation
Net interest margin - pre credit 3.61 % 3.79 % 3.62 % 3.76 % Effect of interest reversals, lost interest, and carry costs of NPAs (.17) (.19) (.19) (.23)
Net interest margin 3.44 % 3.60 % 3.43 % 3.53 %
Tangible common equity and tangible equity to tangible assets reconciliation
Tangible common equity to tangible assets 5.67 % 5.73 % 5.45 % 5.33 % Effect of preferred equity 2.88 2.93 2.79 2.75
Tangible equity to tangible assets 8.55 8.66 8.24 8.08
Effect of goodwill and other intangibles .08 .09 .09 .11
Equity to assets (GAAP) 8.63 % 8.75 % 8.33 % 8.19 %
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets 8.33 % 8.44 % 8.37 % 8.21 % Effect of preferred equity 4.24 4.29 4.35 4.23
Tangible equity to risk weighted assets 12.57 12.73 12.72 12.44
Effect of other comprehensive income .51 .36 .28 .10 Effect of trust preferred 1.15 1.17 1.19 1.15
Tier I capital ratio (Regulatory) 14.23 % 14.26 % 14.19 % 13.69 %
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81
Non GAAP Reconciliation Tables 81
Operating Earnings to GAAP Earnings Reconciliation
4Q11 3Q11 2Q11 1Q11
Net interest margin - pre credit reconciliation
Net interest margin - pre credit 3.77 % 3.79 % 3.67 % 3.84 % Effect of interest reversals, lost interest, and carry costs of NPAs (.26) (.24) (.26) (.43)
Net interest margin 3.51 % 3.55 % 3.41 % 3.41 %
Tangible common equity and tangible equity to tangible assets reconciliation
Tangible common equity to tangible assets 5.38 % 5.65 % 1.37 % 2.70 % Effect of preferred equity 2.78 2.77 6.56 3.31
Tangible equity to tangible assets 8.16 8.42 7.93 6.01
Effect of goodwill and other intangibles .12 .13 .13 .14
Equity to assets (GAAP) 8.28 % 8.55 % 8.06 % 6.15 %
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets 8.25 % 8.52 % 8.69 % .75 % Effect of preferred equity 4.29 4.33 4.20 5.87
Tangible equity to risk weighted assets 12.54 12.85 12.89 6.62
Effect of other comprehensive income (.03) (.29) (.42) (.32) Effect of trust preferred 1.18 1.19 1.15 1.13
Tier I capital ratio (Regulatory) 13.69 % 13.75 % 13.62 % 7.43 %
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82
Analyst Coverage 82
FIG Partners Sandler O’Neill & Partners
(Market Perform ‐ Nov 9, 2012) (Hold, Oct 25, 2012)
Keefe, Bruyette & Woods Stephens, Inc.
(Market Perform ‐ Oct 25, 2012) (Overweight ‐ Jan 14, 2013)
Raymond James & Assoc. SunTrust Robinson Humphrey
(Market Perform ‐ Sep 26, 2012) (Neutral ‐ Oct 25, 2012)
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83
United Community Banks, Inc.
Investor Presentation
Fourth Quarter 2012
Copyright 2013
United Community Banks, Inc. All rights reserved.
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