SECURITIES EXCHANGE ACT OF 1934
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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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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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 23, 2014, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended December 31, 2013 (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 23, 2014 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Fourth Quarter 2013 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 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)
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Exhibits
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Exhibit
No.
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Description
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99.1
99.2
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News Release, dated January 23, 2014
Investor Presentation, Fourth Quarter 2013
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| UNITED COMMUNITY BANKS, INC. | |||
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By:
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/s/ Rex S. Schuette | |
| Rex S. Schuette | |||
| Executive Vice President and | |||
| Chief Financial Officer | |||
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 $15.9 MILLION FOR FOURTH QUARTER 2013
- Net income of $15.9 million, or 22 cents per share
- Loans up $62 million, or 6 percent annualized
- Redeemed $180 million of TARP preferred stock
- All capital ratios remain strong
BLAIRSVILLE, GA – January 23, 2014 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported substantial progress in growing the long-term value of its franchise. For the fourth quarter and year ended December 31, 2013, net income was $15.9 million, or 22 cents per share, and $273.1 million, or $4.44 per share, respectively. The year-to-date results include the impact of two significant events during the second quarter – the reversal of the valuation allowance on United’s net deferred tax asset and the higher provision for loan losses and foreclosed property costs from the accelerated sales of classified assets.
“I am very pleased with the important progress we made in the fourth quarter and continue to make as we enter 2014,” said Jimmy Tallent, president and chief executive officer. “We achieved good loan and deposit growth, which allowed us to hold our net interest margin and grow net interest revenue. I’m especially pleased with the termination of the bank and holding company informal memorandums of understanding with the regulators and the redemption of all our outstanding preferred stock that was originally issued to the U.S. Treasury under the Troubled Asset Relief Program (“TARP”) without issuing additional equity. We redeemed $75 million on December 27, 2013 and $105 million on January 10, 2014. These items will have a substantial impact on our future financial performance and our ability to execute our strategic plan.”
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The fourth quarter provision for credit losses was $3.0 million, the same as the third quarter provision but down substantially from the $14.0 million provision in the fourth quarter of 2012. For the year, our provision for credit losses was $65.5 million compared with $62.5 million in 2012. The 2013 provision was elevated by charge-offs associated with the accelerated classified loan sales in the second quarter. The resulting reduction in classified loans led to lower net charge-offs and lower provisions for the third and fourth quarters of 2013. Fourth quarter net charge-offs were $4.44 million compared with $4.47 million in the third quarter and $14.5 million a year ago. Nonperforming assets at year-end were $31.0 million, representing .42 percent of total assets, which is unchanged from third quarter and down from $128.2 million, or 1.88 percent of total assets, a year ago.
Fourth quarter taxable equivalent net interest revenue totaled $55.9 million, up $1.62 million from the third quarter and down $265,000 from the fourth quarter of 2012. The fourth quarter taxable equivalent net interest margin was 3.26 percent, equal to the third quarter and down 19 basis points from a year ago. “We were able to hold our margin at the third quarter level, which allowed our earning assets and deposit growth to increase net interest revenue,” said Tallent. “Competitive loan pricing pressures continue, but we remain sharply focused on growing loans and deposits to offset the impact and grow net interest revenue. We also remain committed to prudent interest rate risk management. To that end, we have been purchasing floating-rate securities, which accounted for 42 percent of our total investment securities portfolio at year-end, up from 39 percent in the third quarter.”
Fourth quarter fee revenue of $13.5 million was down $706,000 from third quarter and $1.13 million from a year ago primarily due to lower mortgage fees. Mortgage fees were down $841,000 from the third quarter and down $1.55 million from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $55.5 million in the fourth quarter compared with $76.6 million in the third quarter and $100.5 million in the fourth quarter of 2012.
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Operating expenses, excluding foreclosed property costs, were $41.4 million for the fourth quarter compared to $39.9 million in the third quarter of 2013 and $46.1 million a year ago. Fourth quarter 2012 operating expenses included a $4.0 million charge to establish a litigation reserve. The remainder of the decrease from a year ago reflects a lower FDIC deposit insurance assessment, lower professional fees and lower intangible amortization charges. The increase from third quarter was mostly in salaries and benefits expense, reflecting higher incentive compensation due to performance targets that were met.
Foreclosed property costs were $191,000 in the fourth quarter compared to $194,000 in the third quarter and $4.61 million a year ago. Foreclosed property costs remain low as the balance of foreclosed properties has stabilized following the accelerated sales of classified assets in the second quarter.
As of December 31, 2013, capital ratios were as follows: Tier 1 Risk-Based of 12.7 percent; Total Risk-Based of 14.0 percent; Tier 1 Common Risk-Based of 9.3 percent; and Tangible Equity-to-Assets of 11.6 percent. The Tier 1 Leverage ratio was 9.1 percent.
Tallent concluded, “The achievements of 2013 are the culmination of several years of hard work, diligence and dedication by our bankers. They have stood their ground during the most difficult economic environment any of us has ever faced, and played an integral role in our return to offense. The coming year will not be without challenges, but we look forward with confidence to the opportunities ahead.”
Conference Call
United will hold a conference call today, Thursday, January 23, 2014, 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 29377597. 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.
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About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.4 billion and operates 102 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and western 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 2012 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 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.
# # #
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UNITED COMMUNITY BANKS, INC.
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Financial Highlights
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Selected Financial Information
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Fourth
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For the Twelve
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2013
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2012
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Quarter
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Months Ended
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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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2013-2012 |
December 31,
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2013-2012 | ||||||||||||||||||||||||||||
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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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2013 | 2012 |
Change
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INCOME SUMMARY
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Interest revenue
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$ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | $ | 64,450 | $ | 247,323 | $ | 267,667 | ||||||||||||||||||||||
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Interest expense
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5,816 | 7,169 | 7,157 | 7,540 | 8,306 | 27,682 | 37,909 | |||||||||||||||||||||||||||||
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Net interest revenue
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55,879 | 54,257 | 54,931 | 54,574 | 56,144 | - | % | 219,641 | 229,758 | (4 | )% | |||||||||||||||||||||||||
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Provision for credit losses
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3,000 | 3,000 | 48,500 | 11,000 | 14,000 | 65,500 | 62,500 | |||||||||||||||||||||||||||||
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Fee revenue
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13,519 | 14,225 | 15,943 | 12,911 | 14,645 | (8 | ) | 56,598 | 56,112 | 1 | ||||||||||||||||||||||||||
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Total revenue
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66,398 | 65,482 | 22,374 | 56,485 | 56,789 | 210,739 | 223,370 | |||||||||||||||||||||||||||||
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Operating expenses
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41,614 | 40,097 | 48,823 | 43,770 | 50,726 | (18 | ) | 174,304 | 186,774 | (7 | ) | |||||||||||||||||||||||||
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Income (loss) before income taxes
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24,784 | 25,385 | (26,449 | ) | 12,715 | 6,063 | 309 | 36,435 | 36,596 | - | ||||||||||||||||||||||||||
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Income tax expense (benefit)
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8,873 | 9,885 | (256,413 | ) | 950 | 802 | (236,705 | ) | 2,740 | |||||||||||||||||||||||||||
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Net income
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15,911 | 15,500 | 229,964 | 11,765 | 5,261 | 202 | 273,140 | 33,856 | 707 | |||||||||||||||||||||||||||
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Preferred dividends and discount accretion
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2,912 | 3,059 | 3,055 | 3,052 | 3,045 | 12,078 | 12,148 | |||||||||||||||||||||||||||||
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Net income available to common shareholders
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$ | 12,999 | $ | 12,441 | $ | 226,909 | $ | 8,713 | $ | 2,216 | 487 | $ | 261,062 | $ | 21,708 | 1,103 | ||||||||||||||||||||
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PERFORMANCE MEASURES
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Per common share:
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Diluted income
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$ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | 450 | $ | 4.44 | $ | .38 | 1,068 | ||||||||||||||||||||
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Book value
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11.30 | 10.99 | 10.90 | 6.85 | 6.67 | 69 | 11.30 | 6.67 | 69 | |||||||||||||||||||||||||||
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Tangible book value (2)
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11.26 | 10.95 | 10.82 | 6.76 | 6.57 | 71 | 11.26 | 6.57 | 71 | |||||||||||||||||||||||||||
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Key performance ratios:
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Return on common equity (1)(3)
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7.52 | % | 7.38 | % | 197.22 |
%
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8.51 | % | 2.15 |
%
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46.72 | % | 5.43 |
%
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Return on assets (3)
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.86 | .86 | 13.34 | .70 | .31 | 3.86 | .49 | |||||||||||||||||||||||||||||
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Net interest margin (3)
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3.26 | 3.26 | 3.33 | 3.37 | 3.45 | 3.30 | 3.51 | |||||||||||||||||||||||||||||
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Efficiency ratio
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60.02 | 58.55 | 68.89 | 64.97 | 71.69 | 63.14 | 65.43 | |||||||||||||||||||||||||||||
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Equity to assets
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11.62 | 11.80 | 11.57 | (4) | 8.60 | 8.63 | 10.35 | 8.47 | ||||||||||||||||||||||||||||
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Tangible equity to assets (2)
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11.59 | 11.76 | 11.53 | (4) | 8.53 | 8.55 | 10.31 | 8.38 | ||||||||||||||||||||||||||||
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Tangible common equity to assets (2)
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8.99 | 9.02 | 8.79 | (4) | 5.66 | 5.67 | 7.55 | 5.54 | ||||||||||||||||||||||||||||
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Tangible common equity to risk-weighted assets (2)
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13.17 | 13.34 | 13.16 | 8.45 | 8.26 | 13.17 | 8.26 | |||||||||||||||||||||||||||||
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ASSET QUALITY *
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Non-performing loans
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$ | 26,819 | $ | 26,088 | $ | 27,864 | $ | 96,006 | $ | 109,894 | $ | 26,819 | $ | 109,894 | ||||||||||||||||||||||
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Foreclosed properties
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4,221 | 4,467 | 3,936 | 16,734 | 18,264 | 4,221 | 18,264 | |||||||||||||||||||||||||||||
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Total non-performing assets (NPAs)
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31,040 | 30,555 | 31,800 | 112,740 | 128,158 | 31,040 | 128,158 | |||||||||||||||||||||||||||||
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Allowance for loan losses
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76,762 | 80,372 | 81,845 | 105,753 | 107,137 | 76,762 | 107,137 | |||||||||||||||||||||||||||||
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Net charge-offs
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4,445 | 4,473 | 72,408 | 12,384 | 14,505 | 93,710 | 69,831 | |||||||||||||||||||||||||||||
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Allowance for loan losses to loans
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1.77 | % | 1.88 | % | 1.95 |
%
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2.52 | % | 2.57 | % | 1.77 | % | 2.57 | % | ||||||||||||||||||||||
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Net charge-offs to average loans (3)
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.41 | .42 | 6.87 | 1.21 | 1.39 | 2.22 | 1.69 | |||||||||||||||||||||||||||||
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NPAs to loans and foreclosed properties
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.72 | .72 | .76 | 2.68 | 3.06 | .72 | 3.06 | |||||||||||||||||||||||||||||
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NPAs to total assets
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.42 | .42 | .44 | 1.65 | 1.88 | .42 | 1.88 | |||||||||||||||||||||||||||||
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AVERAGE BALANCES ($ in millions)
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Loans
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$ | 4,315 | $ | 4,250 | $ | 4,253 | $ | 4,197 | $ | 4,191 | 3 | $ | 4,254 | $ | 4,166 | 2 | ||||||||||||||||||||
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Investment securities
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2,280 | 2,178 | 2,161 | 2,141 | 2,088 | 9 | 2,190 | 2,089 | 5 | |||||||||||||||||||||||||||
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Earning assets
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6,823 | 6,615 | 6,608 | 6,547 | 6,482 | 5 | 6,649 | 6,547 | 2 | |||||||||||||||||||||||||||
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Total assets
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7,370 | 7,170 | 6,915 | 6,834 | 6,778 | 9 | 7,074 | 6,865 | 3 | |||||||||||||||||||||||||||
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Deposits
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6,190 | 5,987 | 5,983 | 5,946 | 5,873 | 5 | 6,027 | 5,885 | 2 | |||||||||||||||||||||||||||
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Shareholders’ equity
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856 | 846 | 636 | 588 | 585 | 46 | 732 | 582 | 26 | |||||||||||||||||||||||||||
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Common shares - basic (thousands)
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59,923 | 59,100 | 58,141 | 58,081 | 57,971 | 58,787 | 57,857 | |||||||||||||||||||||||||||||
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Common shares - diluted (thousands)
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59,925 | 59,202 | 58,141 | 58,081 | 57,971 | 58,845 | 57,857 | |||||||||||||||||||||||||||||
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AT PERIOD END ($ in millions)
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Loans *
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$ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 4 | $ | 4,329 | $ | 4,175 | 4 | ||||||||||||||||||||
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Investment securities
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2,312 | 2,169 | 2,152 | 2,141 | 2,079 | 11 | 2,312 | 2,079 | 11 | |||||||||||||||||||||||||||
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Total assets
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7,425 | 7,243 | 7,163 | 6,849 | 6,802 | 9 | 7,425 | 6,802 | 9 | |||||||||||||||||||||||||||
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Deposits
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6,202 | 6,113 | 6,012 | 6,026 | 5,952 | 4 | 6,202 | 5,952 | 4 | |||||||||||||||||||||||||||
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Shareholders’ equity
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796 | 852 | 829 | 592 | 581 | 37 | 796 | 581 | 37 | |||||||||||||||||||||||||||
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Common shares outstanding (thousands)
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59,432 | 59,412 | 57,831 | 57,767 | 57,741 | 59,432 | 57,741 | |||||||||||||||||||||||||||||
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(1) Net income 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. (4) Calculated as of period-end.
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* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
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UNITED COMMUNITY BANKS, INC.
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Selected Financial Information
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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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2013
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2012
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2011
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2010
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2009
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INCOME SUMMARY
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Net interest revenue
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$ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | $ | 244,834 | ||||||||||
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Operating provision for credit losses (1)
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65,500 | 62,500 | 251,000 | 234,750 | 310,000 | |||||||||||||||
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Operating fee revenue (2)
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56,598 | 56,112 | 44,907 | 46,963 | 51,357 | |||||||||||||||
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Total operating revenue (1)(2)
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210,739 | 223,370 | 32,577 | 56,850 | (13,809 | ) | ||||||||||||||
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Operating expenses (3)
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174,304 | 186,774 | 261,599 | 242,952 | 217,050 | |||||||||||||||
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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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36,435 | 36,596 | (229,022 | ) | (231,451 | ) | (230,859 | ) | ||||||||||||
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Operating income taxes
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(236,705 | ) | 2,740 | (2,276 | ) | 73,218 | (91,754 | ) | ||||||||||||
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Net operating income (loss) from continuing operations
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273,140 | 33,856 | (226,746 | ) | (304,669 | ) | (139,105 | ) | ||||||||||||
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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 | ||||||||||||||
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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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273,140 | 33,856 | (226,746 | ) | (502,344 | ) | (228,327 | ) | ||||||||||||
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Preferred dividends and discount accretion
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12,078 | 12,148 | 11,838 | 10,316 | 10,242 | |||||||||||||||
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Net income (loss) available to common shareholders
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$ | 261,062 | $ | 21,708 | $ | (238,584 | ) | $ | (512,660 | ) | $ | (238,569 | ) | |||||||
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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) |
$ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | |||||||
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Diluted earnings (loss) from continuing operations
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4.44 | .38 | (5.97 | ) | (27.15 | ) | (19.80 | ) | ||||||||||||
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Diluted earnings (loss)
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4.44 | .38 | (5.97 | ) | (27.09 | ) | (19.76 | ) | ||||||||||||
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Book value
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11.30 | 6.67 | 6.62 | 15.40 | 41.78 | |||||||||||||||
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Tangible book value (5)
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11.26 | 6.57 | 6.47 | 14.80 | 30.09 | |||||||||||||||
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Key performance ratios:
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Return on common equity (4)
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46.72 | 5.43 | (93.57 | )% | (85.08 | )% | (34.40 | )% | ||||||||||||
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Return on assets
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3.86 | .49 | (3.15 | ) | (6.61 | ) | (2.76 | ) | ||||||||||||
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Net interest margin
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3.30 | 3.51 | 3.52 | 3.59 | 3.29 | |||||||||||||||
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Operating efficiency ratio from continuing operations (2)(3)
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63.14 | 65.43 | 92.27 | 98.98 | 73.97 | |||||||||||||||
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Equity to assets
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10.35 | 8.47 | 7.75 | 10.77 | 11.12 | |||||||||||||||
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Tangible equity to assets (5)
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10.31 | 8.38 | 7.62 | 8.88 | 8.33 | |||||||||||||||
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Tangible common equity to assets (5)
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7.55 | 5.54 | 3.74 | 6.52 | 6.15 | |||||||||||||||
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Tangible common equity to risk-weighted assets (5)
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13.17 | 8.26 | 8.25 | 5.64 | 10.39 | |||||||||||||||
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ASSET QUALITY *
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Non-performing loans
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$ | 26,819 | $ | 109,894 | $ | 127,479 | $ | 179,094 | $ | 264,092 | ||||||||||
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Foreclosed properties
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4,221 | 18,264 | 32,859 | 142,208 | 120,770 | |||||||||||||||
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Total non-performing assets (NPAs)
|
31,040 | 128,158 | 160,338 | 321,302 | 384,862 | |||||||||||||||
|
Allowance for loan losses
|
76,762 | 107,137 | 114,468 | 174,695 | 155,602 | |||||||||||||||
|
Operating net charge-offs (1)
|
93,710 | 69,831 | 311,227 | 215,657 | 276,669 | |||||||||||||||
|
Allowance for loan losses to loans
|
1.77 | 2.57 | % | 2.79 | % | 3.79 | % | 3.02 | % | |||||||||||
|
Operating net charge-offs to average loans (1)
|
2.22 | 1.69 | 7.33 | 4.42 | 5.03 | |||||||||||||||
|
NPAs to loans and foreclosed properties
|
.72 | 3.06 | 3.87 | 6.77 | 7.30 | |||||||||||||||
|
NPAs to total assets
|
.42 | 1.88 | 2.30 | 4.42 | 4.81 | |||||||||||||||
|
AVERAGE BALANCES ($ in millions)
|
||||||||||||||||||||
|
Loans
|
$ | 4,254 | $ | 4,166 | $ | 4,307 | $ | 4,961 | $ | 5,548 | ||||||||||
|
Investment securities
|
2,190 | 2,089 | 1,999 | 1,453 | 1,656 | |||||||||||||||
|
Earning assets
|
6,649 | 6,547 | 6,785 | 6,822 | 7,465 | |||||||||||||||
|
Total assets
|
7,074 | 6,865 | 7,189 | 7,605 | 8,269 | |||||||||||||||
|
Deposits
|
6,027 | 5,885 | 6,275 | 6,373 | 6,713 | |||||||||||||||
|
Shareholders’ equity
|
732 | 582 | 557 | 819 | 920 | |||||||||||||||
|
Common shares - Basic (thousands)
|
58,787 | 57,857 | 39,943 | 18,925 | 12,075 | |||||||||||||||
|
Common shares - Diluted (thousands)
|
58,845 | 57,857 | 39,943 | 18,925 | 12,075 | |||||||||||||||
|
AT YEAR END ($ in millions)
|
||||||||||||||||||||
|
Loans *
|
$ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | ||||||||||
|
Investment securities
|
2,312 | 2,079 | 2,120 | 1,490 | 1,530 | |||||||||||||||
|
Total assets
|
7,425 | 6,802 | 6,983 | 7,276 | 8,000 | |||||||||||||||
|
Deposits
|
6,202 | 5,952 | 6,098 | 6,469 | 6,628 | |||||||||||||||
|
Shareholders’ equity
|
796 | 581 | 575 | 469 | 962 | |||||||||||||||
|
Common shares outstanding (thousands)
|
59,432 | 57,741 | 57,561 | 18,937 | 18,809 | |||||||||||||||
|
(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.
|
|
* 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
|
||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
2013
|
2012
|
For
the Twelve Months
Ended
December 31,
|
||||||||||||||||||||||||||||||||||||||
(in
thousands, except per share
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
|||||||||||||||||||||||||||||||||||
data;
taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||
\
|
\
|
|||||||||||||||||||||||||||||||||||||||
Interest
revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Interest
revenue - taxable equivalent
|
$ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | $ | 64,450 | $ | 247,323 | $ | 267,667 | $ | 304,308 | $ | 344,493 | $ | 404,961 | ||||||||||||||||||||
Taxable
equivalent adjustment
|
(380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Interest
revenue (GAAP)
|
$ | 61,315 | $ | 61,056 | $ | 61,720 | $ | 61,749 | $ | 64,069 | $ | 245,840 | $ | 265,977 | $ | 302,601 | $ | 342,492 | $ | 402,829 | ||||||||||||||||||||
Net
interest revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Net
interest revenue - taxable equivalent
|
$ | 55,879 | $ | 54,257 | $ | 54,931 | $ | 54,574 | $ | 56,144 | $ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | $ | 244,834 | ||||||||||||||||||||
Taxable
equivalent adjustment
|
(380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Net
interest revenue (GAAP)
|
$ | 55,499 | $ | 53,887 | $ | 54,563 | $ | 54,209 | $ | 55,763 | $ | 218,158 | $ | 228,068 | $ | 236,963 | $ | 242,636 | $ | 242,702 | ||||||||||||||||||||
Provision
for credit losses reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
provision for credit losses
|
$ | 3,000 | $ | 3,000 | $ | 48,500 | $ | 11,000 | $ | 14,000 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 234,750 | $ | 310,000 | ||||||||||||||||||||
Partial
recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | - | (11,750 | ) | - | |||||||||||||||||||||||||||||
Provision
for credit losses (GAAP)
|
$ | 3,000 | $ | 3,000 | $ | 48,500 | $ | 11,000 | $ | 14,000 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 223,000 | $ | 310,000 | ||||||||||||||||||||
Fee
revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
fee revenue
|
$ | 13,519 | $ | 14,225 | $ | 15,943 | $ | 12,911 | $ | 14,645 | $ | 56,598 | $ | 56,112 | $ | 44,907 | $ | 46,963 | $ | 51,357 | ||||||||||||||||||||
Gain
from acquisition
|
- | - | - | - | - | - | - | - | - | 11,390 | ||||||||||||||||||||||||||||||
Fee
revenue (GAAP)
|
$ | 13,519 | $ | 14,225 | $ | 15,943 | $ | 12,911 | $ | 14,645 | $ | 56,598 | $ | 56,112 | $ | 44,907 | $ | 46,963 | $ | 62,747 | ||||||||||||||||||||
Total
revenue reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Total
operating revenue
|
$ | 66,398 | $ | 65,482 | $ | 22,374 | $ | 56,485 | $ | 56,789 | $ | 210,739 | $ | 223,370 | $ | 32,577 | $ | 56,850 | $ | (13,809 | ) | |||||||||||||||||||
Taxable
equivalent adjustment
|
(380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Gain
from acquisition
|
- | - | - | - | - | - | - | - | - | 11,390 | ||||||||||||||||||||||||||||||
Partial
recovery of special fraud-related loan loss
|
- | - | - | - | - | - | - | - | 11,750 | - | ||||||||||||||||||||||||||||||
Total
revenue (GAAP)
|
$ | 66,018 | $ | 65,112 | $ | 22,006 | $ | 56,120 | $ | 56,408 | $ | 209,256 | $ | 221,680 | $ | 30,870 | $ | 66,599 | $ | (4,551 | ) | |||||||||||||||||||
Expense
reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
expense
|
$ | 41,614 | $ | 40,097 | $ | 48,823 | $ | 43,770 | $ | 50,726 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 288,301 | $ | 217,050 | ||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | - | - | - | - | - | - | - | 210,590 | 95,000 | ||||||||||||||||||||||||||||||
Severance
costs
|
- | - | - | - | - | - | - | - | - | 2,898 | ||||||||||||||||||||||||||||||
Operating
expense (GAAP)
|
$ | 41,614 | $ | 40,097 | $ | 48,823 | $ | 43,770 | $ | 50,726 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 498,891 | $ | 314,948 | ||||||||||||||||||||
Income
(loss) before taxes reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Income
(loss) before taxes
|
$ | 24,784 | $ | 25,385 | $ | (26,449 | ) | $ | 12,715 | $ | 6,063 | $ | 36,435 | $ | 36,596 | $ | (229,022 | ) | $ | (231,451 | ) | $ | (230,859 | ) | ||||||||||||||||
Taxable
equivalent adjustment
|
(380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
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)
|
$ | 24,404 | $ | 25,015 | $ | (26,817 | ) | $ | 12,350 | $ | 5,682 | $ | 34,952 | $ | 34,906 | $ | (230,729 | ) | $ | (432,292 | ) | $ | (319,499 | ) | ||||||||||||||||
Income
tax expense (benefit) reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Income
tax expense (benefit)
|
$ | 8,873 | $ | 9,885 | $ | (256,413 | ) | $ | 950 | $ | 802 | $ | (236,705 | ) | $ | 2,740 | $ | (2,276 | ) | $ | 73,218 | $ | (91,754 | ) | ||||||||||||||||
Taxable
equivalent adjustment
|
(380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Gain
from acquisition, tax expense
|
- | - | - | - | - | - | - | - | - | 4,328 | ||||||||||||||||||||||||||||||
Severance
costs, tax benefit
|
- | - | - | - | - | - | - | - | - | (1,101 | ) | |||||||||||||||||||||||||||||
Income
tax expense (benefit) (GAAP)
|
$ | 8,493 | $ | 9,515 | $ | (256,781 | ) | $ | 585 | $ | 421 | $ | (238,188 | ) | $ | 1,050 | $ | (3,983 | ) | $ | 71,217 | $ | (90,659 | ) | ||||||||||||||||
Diluted
earnings (loss) from continuing operations per common share reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Diluted
operating earnings (loss) from continuing operations per common share
|
$ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | |||||||||||||||||
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)
|
$ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (27.15 | ) | $ | (19.80 | ) | |||||||||||||||||
Book
value per common share reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Tangible
book value per common share
|
$ | 11.26 | $ | 10.95 | $ | 10.82 | $ | 6.76 | $ | 6.57 | $ | 11.26 | $ | 6.57 | $ | 6.47 | $ | 14.80 | $ | 30.09 | ||||||||||||||||||||
Effect
of goodwill and other intangibles
|
.04 | .04 | .08 | .09 | .10 | .04 | .10 | .15 | .60 | 11.69 | ||||||||||||||||||||||||||||||
Book
value per common share (GAAP)
|
$ | 11.30 | $ | 10.99 | $ | 10.90 | $ | 6.85 | $ | 6.67 | $ | 11.30 | $ | 6.67 | $ | 6.62 | $ | 15.40 | $ | 41.78 | ||||||||||||||||||||
Efficiency
ratio from continuing operations reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
efficiency ratio from continuing operations
|
60.02 | % | 58.55 | % | 68.89 | % | 64.97 | % | 71.69 | % | 63.14 | % | 65.43 | % | 92.27 | % | 98.98 | % | 73.97 | % | ||||||||||||||||||||
Gain
from acquisition
|
- | - | - | - | - | - | - | - | - | (2.77 | ) | |||||||||||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | - | - | - | - | - | - | - | 72.29 | 31.17 | ||||||||||||||||||||||||||||||
Severance
costs
|
- | - | - | - | - | - | - | - | - | .95 | ||||||||||||||||||||||||||||||
Efficiency
ratio from continuing operations (GAAP)
|
60.02 | % | 58.55 | % | 68.89 | % | 64.97 | % | 71.69 | % | 63.14 | % | 65.43 | % | 92.27 | % | 171.27 | % | 103.32 | % | ||||||||||||||||||||
Average
equity to assets reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Tangible
common equity to assets
|
8.99 | % | 9.02 | % | 8.79 | % | 5.66 | % | 5.67 | % | 7.55 | % | 5.54 | % | 3.74 | % | 6.52 | % | 6.15 | % | ||||||||||||||||||||
Effect
of preferred equity
|
2.60 | 2.74 | 2.74 | 2.87 | 2.88 | 2.76 | 2.84 | 3.88 | 2.36 | 2.18 | ||||||||||||||||||||||||||||||
Tangible
equity to assets
|
11.59 | 11.76 | 11.53 | 8.53 | 8.55 | 10.31 | 8.38 | 7.62 | 8.88 | 8.33 | ||||||||||||||||||||||||||||||
Effect
of goodwill and other intangibles
|
.03 | .04 | .04 | .07 | .08 | .04 | .09 | .13 | 1.89 | 2.79 | ||||||||||||||||||||||||||||||
Equity
to assets (GAAP)
|
11.62 | % | 11.80 | % | 11.57 | % | 8.60 | % | 8.63 | % | 10.35 | % | 8.47 | % | 7.75 | % | 10.77 | % | 11.12 | % | ||||||||||||||||||||
Tangible
common equity to risk-weighted assets reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Tangible
common equity to risk-weighted assets
|
13.17 | % | 13.34 | % | 13.16 | % | 8.45 | % | 8.26 | % | 13.17 | % | 8.26 | % | 8.25 | % | 5.64 | % | 10.39 | % | ||||||||||||||||||||
Effect
of other comprehensive income
|
.39 | .49 | .29 | .49 | .51 | .39 | .51 | (.03 | ) | (.42 | ) | (.87 | ) | |||||||||||||||||||||||||||
Effect
of deferred tax limitation
|
(4.25 | ) | (4.72 | ) | (4.99 | ) | - | - | (4.25 | ) | - | - | - | (1.27 | ) | |||||||||||||||||||||||||
Effect
of trust preferred
|
1.04 | 1.09 | 1.11 | 1.15 | 1.15 | 1.04 | 1.15 | 1.18 | 1.06 | .97 | ||||||||||||||||||||||||||||||
Effect
of preferred equity
|
2.38 | 4.01 | 4.11 | 4.22 | 4.24 | 2.38 | 4.24 | 4.29 | 3.53 | 3.19 | ||||||||||||||||||||||||||||||
Tier
I capital ratio (Regulatory)
|
12.73 | % | 14.21 | % | 13.68 | % | 14.31 | % | 14.16 | % | 12.73 | % | 14.16 | % | 13.69 | % | 9.81 | % | 12.41 | % | ||||||||||||||||||||
Net
charge-offs reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
net charge-offs
|
$ | 4,445 | $ | 4,473 | $ | 72,408 | $ | 12,384 | $ | 14,505 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 215,657 | $ | 276,669 | ||||||||||||||||||||
Subsequent
partial recovery of fraud-related charge-off
|
- | - | - | - | - | - | - | - | (11,750 | ) | - | |||||||||||||||||||||||||||||
Net
charge-offs (GAAP)
|
$ | 4,445 | $ | 4,473 | $ | 72,408 | $ | 12,384 | $ | 14,505 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 203,907 | $ | 276,669 | ||||||||||||||||||||
Net
charge-offs to average loans reconciliation
|
||||||||||||||||||||||||||||||||||||||||
Operating
net charge-offs to average loans
|
.41 | % | .42 | % | 6.87 | % | 1.21 | % | 1.39 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.42 | % | 5.03 | % | ||||||||||||||||||||
Subsequent
partial recovery of fraud-related charge-off
|
- | - | - | - | - | - | - | - | (.25 | ) | - | |||||||||||||||||||||||||||||
Net
charge-offs to average loans (GAAP)
|
.41 | % | .42 | % | 6.87 | % | 1.21 | % | 1.39 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.17 | % | 5.03 | % | ||||||||||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||||||||||
|
Financial Highlights
|
||||||||||||||||||||||||||||
|
Loan Portfolio Composition at Period-End (1)
|
||||||||||||||||||||||||||||
|
2013
|
2012
|
Linked
Quarter Change |
Year over
Year Change |
|||||||||||||||||||||||||
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
||||||||||||||||||||||||
|
(in millions)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||||||||||
|
Owner occupied commercial RE
|
$ | 1,134 | $ | 1,129 | $ | 1,119 | $ | 1,130 | $ | 1,131 | $ | 5 | $ | 3 | ||||||||||||||
|
Income producing commercial RE
|
623 | 614 | 629 | 674 | 682 | 9 | (59 | ) | ||||||||||||||||||||
|
Commercial & industrial
|
472 | 457 | 437 | 454 | 458 | 15 | 14 | |||||||||||||||||||||
|
Commercial construction
|
149 | 137 | 133 | 152 | 155 | 12 | (6 | ) | ||||||||||||||||||||
|
Total commercial
|
2,378 | 2,337 | 2,318 | 2,410 | 2,426 | 41 | (48 | ) | ||||||||||||||||||||
|
Residential mortgage
|
875 | 888 | 876 | 850 | 829 | (13 | ) | 46 | ||||||||||||||||||||
|
Home equity lines of credit
|
441 | 421 | 402 | 396 | 385 | 20 | 56 | |||||||||||||||||||||
|
Residential construction
|
328 | 318 | 332 | 372 | 382 | 10 | (54 | ) | ||||||||||||||||||||
|
Consumer installment
|
307 | 303 | 261 | 166 | 153 | 4 | 154 | |||||||||||||||||||||
|
Total loans
|
$ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 62 | 154 | ||||||||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||||||||||
|
North Georgia
|
$ | 1,240 | $ | 1,262 | $ | 1,265 | $ | 1,363 | $ | 1,364 | (22 | ) | (124 | ) | ||||||||||||||
|
Atlanta MSA
|
1,275 | 1,246 | 1,227 | 1,262 | 1,250 | 29 | 25 | |||||||||||||||||||||
|
North Carolina
|
572 | 575 | 576 | 575 | 579 | (3 | ) | (7 | ) | |||||||||||||||||||
|
Coastal Georgia
|
423 | 421 | 397 | 398 | 400 | 2 | 23 | |||||||||||||||||||||
|
Gainesville MSA
|
255 | 253 | 256 | 259 | 261 | 2 | (6 | ) | ||||||||||||||||||||
|
East Tennessee
|
280 | 277 | 282 | 282 | 283 | 3 | (3 | ) | ||||||||||||||||||||
|
South Carolina
|
88 | 47 | 34 | - | - | 41 | 88 | |||||||||||||||||||||
|
Other (2)
|
196 | 186 | 152 | 55 | 38 | 10 | 158 | |||||||||||||||||||||
|
Total loans
|
$ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 62 | 154 | ||||||||||||||||
|
RESIDENTIAL CONSTRUCTION
|
||||||||||||||||||||||||||||
|
Dirt loans
|
||||||||||||||||||||||||||||
|
Acquisition & development
|
$ | 39 | $ | 40 | $ | 42 | $ | 57 | $ | 62 | (1 | ) | (23 | ) | ||||||||||||||
|
Land loans
|
38 | 35 | 36 | 42 | 46 | 3 | (8 | ) | ||||||||||||||||||||
|
Lot loans
|
166 | 167 | 173 | 188 | 193 | (1 | ) | (27 | ) | |||||||||||||||||||
|
Total
|
243 | 242 | 251 | 287 | 301 | 1 | (58 | ) | ||||||||||||||||||||
|
House loans
|
||||||||||||||||||||||||||||
|
Spec
|
23 | 30 | 34 | 40 | 41 | (7 | ) | (18 | ) | |||||||||||||||||||
|
Sold
|
62 | 46 | 47 | 45 | 40 | 16 | 22 | |||||||||||||||||||||
|
Total
|
85 | 76 | 81 | 85 | 81 | 9 | 4 | |||||||||||||||||||||
|
Total residential construction
|
$ | 328 | $ | 318 | $ | 332 | $ | 372 | $ | 382 | 10 | (54 | ) | |||||||||||||||
|
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
|
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||
|
Financial Highlights
|
||||||||||||||||||||
|
Loan Portfolio Composition at Year-End (1)
|
||||||||||||||||||||
|
(in millions)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||
|
Owner occupied commercial RE
|
$ | 1,134 | $ | 1,131 | $ | 1,112 | $ | 980 | $ | 963 | ||||||||||
|
Income producing commercial RE
|
623 | 682 | 710 | 781 | 816 | |||||||||||||||
|
Commercial & industrial
|
472 | 458 | 428 | 441 | 390 | |||||||||||||||
|
Commercial construction
|
149 | 155 | 164 | 297 | 363 | |||||||||||||||
|
Total commercial
|
2,378 | 2,426 | 2,414 | 2,499 | 2,532 | |||||||||||||||
|
Residential mortgage
|
875 | 829 | 835 | 944 | 1,052 | |||||||||||||||
|
Home equity lines of credit
|
441 | 385 | 300 | 335 | 375 | |||||||||||||||
|
Residential construction
|
328 | 382 | 448 | 695 | 1,050 | |||||||||||||||
|
Consumer / installment
|
307 | 153 | 113 | 131 | 142 | |||||||||||||||
|
Total loans
|
$ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | ||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||
|
North Georgia
|
$ | 1,240 | $ | 1,364 | $ | 1,426 | $ | 1,689 | $ | 1,884 | ||||||||||
|
Atlanta MSA
|
1,275 | 1,250 | 1,220 | 1,310 | 1,435 | |||||||||||||||
|
North Carolina
|
572 | 579 | 597 | 702 | 772 | |||||||||||||||
|
Coastal Georgia
|
423 | 400 | 346 | 335 | 405 | |||||||||||||||
|
Gainesville MSA
|
255 | 261 | 265 | 312 | 390 | |||||||||||||||
|
East Tennessee
|
280 | 283 | 256 | 256 | 265 | |||||||||||||||
|
South Carolina
|
88 | - | - | - | - | |||||||||||||||
|
Other (2)
|
196 | 38 | - | - | - | |||||||||||||||
|
Total loans
|
$ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | ||||||||||
|
(1) Excludes total loans of $20.3 million, $33.4 million, $54.5 million, $68.2 million and $85.1 million as of December 31, 2013, 2012, 2011, 2010 and 2009, respectively, that are covered by loss-sharing agreements with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
|
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||||||||||||||||||
|
Financial Highlights
|
||||||||||||||||||||||||||||||||||||
|
Credit Quality (1)
|
||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Fourth Quarter 2013
|
Third Quarter 2013
|
Second Quarter 2013
|
||||||||||||||||||||||||||||||||||
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
||||||||||||||||||||||||||||
|
(in thousands)
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
|||||||||||||||||||||||||||
|
NONPERFORMING ASSETS BY CATEGORY
|
||||||||||||||||||||||||||||||||||||
|
Owner occupied CRE
|
$ | 5,822 | $ | 832 | $ | 6,654 | $ | 6,358 | $ | 591 | $ | 6,949 | $ | 5,283 | $ | 547 | $ | 5,830 | ||||||||||||||||||
|
Income producing CRE
|
2,518 | - | 2,518 | 1,657 | 139 | 1,796 | 1,954 | - | 1,954 | |||||||||||||||||||||||||||
|
Commercial & industrial
|
427 | - | 427 | 609 | - | 609 | 548 | - | 548 | |||||||||||||||||||||||||||
|
Commercial construction
|
361 | - | 361 | 343 | 376 | 719 | 504 | 376 | 880 | |||||||||||||||||||||||||||
|
Total commercial
|
9,128 | 832 | 9,960 | 8,967 | 1,106 | 10,073 | 8,289 | 923 | 9,212 | |||||||||||||||||||||||||||
|
Residential mortgage
|
11,730 | 2,684 | 14,414 | 11,335 | 1,679 | 13,014 | 12,847 | 1,303 | 14,150 | |||||||||||||||||||||||||||
|
Home equity lines of credit
|
1,448 | 389 | 1,837 | 1,169 | 475 | 1,644 | 1,491 | 140 | 1,631 | |||||||||||||||||||||||||||
|
Residential construction
|
4,264 | 316 | 4,580 | 4,097 | 1,207 | 5,304 | 4,838 | 1,570 | 6,408 | |||||||||||||||||||||||||||
|
Consumer installment
|
249 | - | 249 | 520 | - | 520 | 399 | - | 399 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
|
Balance as a % of
|
||||||||||||||||||||||||||||||||||||
|
Unpaid Principal
|
65.3 | % | 44.5 | % | 61.4 | % | 61.6 | % | 41.5 | % | 57.6 | % | 62.6 | % | 31.6 | % | 55.8 | % | ||||||||||||||||||
|
NONPERFORMING ASSETS BY MARKET
|
||||||||||||||||||||||||||||||||||||
|
North Georgia
|
$ | 12,352 | $ | 2,494 | $ | 14,846 | $ | 13,652 | $ | 1,726 | $ | 15,378 | $ | 12,830 | $ | 1,617 | $ | 14,447 | ||||||||||||||||||
|
Atlanta MSA
|
2,830 | 684 | 3,514 | 3,096 | 1,026 | 4,122 | 3,803 | 1,197 | 5,000 | |||||||||||||||||||||||||||
|
North Carolina
|
6,567 | 683 | 7,250 | 5,680 | 762 | 6,442 | 6,512 | 295 | 6,807 | |||||||||||||||||||||||||||
|
Coastal Georgia
|
2,342 | 173 | 2,515 | 995 | 928 | 1,923 | 2,588 | 627 | 3,215 | |||||||||||||||||||||||||||
|
Gainesville MSA
|
928 | - | 928 | 1,036 | - | 1,036 | 1,008 | - | 1,008 | |||||||||||||||||||||||||||
|
East Tennessee
|
1,800 | 187 | 1,987 | 1,629 | 25 | 1,654 | 1,123 | 200 | 1,323 | |||||||||||||||||||||||||||
|
South Carolina
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Other (3)
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
|
NONPERFORMING ASSETS ACTIVITY
|
||||||||||||||||||||||||||||||||||||
|
Beginning Balance
|
$ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | $ | 96,006 | $ | 16,734 | $ | 112,740 | ||||||||||||||||||
|
Loans placed on non-accrual
|
11,043 | - | 11,043 | 9,959 | - | 9,959 | 13,200 | - | 13,200 | |||||||||||||||||||||||||||
|
Payments received
|
(1,688 | ) | - | (1,688 | ) | (3,601 | ) | - | (3,601 | ) | (47,937 | ) | - | (47,937 | ) | |||||||||||||||||||||
|
Loan charge-offs
|
(4,621 | ) | - | (4,621 | ) | (5,395 | ) | - | (5,395 | ) | (23,972 | ) | - | (23,972 | ) | |||||||||||||||||||||
|
Foreclosures
|
(4,003 | ) | 4,003 | - | (2,739 | ) | 2,739 | - | (9,433 | ) | 9,433 | - | ||||||||||||||||||||||||
|
Capitalized costs
|
- | - | - | - | 7 | 7 | - | 55 | 55 | |||||||||||||||||||||||||||
|
Property sales
|
- | (4,684 | ) | (4,684 | ) | - | (2,534 | ) | (2,534 | ) | - | (17,972 | ) | (17,972 | ) | |||||||||||||||||||||
|
Write downs
|
- | (326 | ) | (326 | ) | - | (329 | ) | (329 | ) | - | (1,369 | ) | (1,369 | ) | |||||||||||||||||||||
|
Net gains (losses) on sales
|
- | 761 | 761 | - | 648 | 648 | - | (2,945 | ) | (2,945 | ) | |||||||||||||||||||||||||
|
Ending Balance
|
$ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
|
Fourth Quarter 2013
|
Third Quarter 2013
|
Second Quarter 2013
|
||||||||||||||||||||||||||||||||||
|
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
|
$ | 1,638 | .57 | % | $ | 1,641 | .58 | % | $ | 16,545 | 5.85 | % | ||||||||||||||||||||||||
|
Income producing CRE
|
320 | .21 | 216 | .14 | 8,921 | 5.45 | ||||||||||||||||||||||||||||||
|
Commercial & industrial
|
(149 | ) | (.13 | ) | 136 | .12 | 15,576 | 13.91 | ||||||||||||||||||||||||||||
|
Commercial construction
|
(9 | ) | (.02 | ) | 133 | .39 | 6,295 | 17.53 | ||||||||||||||||||||||||||||
|
Total commercial
|
1,800 | .30 | 2,126 | .36 | 47,337 | 7.96 | ||||||||||||||||||||||||||||||
|
Residential mortgage
|
1,426 | .64 | 693 | .31 | 5,469 | 2.52 | ||||||||||||||||||||||||||||||
|
Home equity lines of credit
|
417 | .38 | 382 | .37 | 1,040 | 1.04 | ||||||||||||||||||||||||||||||
|
Residential construction
|
327 | .40 | 1,072 | 1.31 | 18,506 | 20.91 | ||||||||||||||||||||||||||||||
|
Consumer installment
|
475 | .62 | 200 | .28 | 56 | .10 | ||||||||||||||||||||||||||||||
|
Total
|
$ | 4,445 | .41 | $ | 4,473 | .42 | $ | 72,408 | 6.87 | |||||||||||||||||||||||||||
|
NET CHARGE-OFFS BY MARKET
|
||||||||||||||||||||||||||||||||||||
|
North Georgia
|
$ | 1,603 | .51 | % | $ | 2,090 | .66 | % | $ | 59,102 | 17.20 | % | ||||||||||||||||||||||||
|
Atlanta MSA
|
636 | .20 | 1,013 | .33 | 9,986 | 3.21 | ||||||||||||||||||||||||||||||
|
North Carolina
|
1,104 | .76 | 704 | .49 | 1,952 | 1.36 | ||||||||||||||||||||||||||||||
|
Coastal Georgia
|
345 | .33 | 139 | .14 | 480 | .49 | ||||||||||||||||||||||||||||||
|
Gainesville MSA
|
346 | .54 | 97 | .15 | 123 | .19 | ||||||||||||||||||||||||||||||
|
East Tennessee
|
323 | .46 | 359 | .51 | 711 | 1.01 | ||||||||||||||||||||||||||||||
|
South Carolina
|
- | - | - | - | - | - | ||||||||||||||||||||||||||||||
|
Other (3)
|
88 | .20 | 71 | .17 | 54 | .24 | ||||||||||||||||||||||||||||||
|
Total
|
$ | 4,445 | .41 | $ | 4,473 | .42 | $ | 72,408 | 6.87 | |||||||||||||||||||||||||||
| (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. |
| (3) | Includes purchased indirect auto loans that are not assigned to a geographic region. |
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||
|
Consolidated Statement of Income (Unaudited)
|
||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
(in thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
Interest revenue:
|
||||||||||||||||
|
Loans, including fees
|
$ | 49,066 | $ | 53,335 | $ | 200,893 | $ | 217,378 | ||||||||
|
Investment securities, including tax exempt of $203, $219, $827 and $956
|
11,253 | 9,841 | 41,158 | 44,613 | ||||||||||||
|
Deposits in banks and short-term investments
|
996 | 893 | 3,789 | 3,986 | ||||||||||||
|
Total interest revenue
|
61,315 | 64,069 | 245,840 | 265,977 | ||||||||||||
|
Interest expense:
|
||||||||||||||||
|
Deposits:
|
||||||||||||||||
|
NOW
|
473 | 462 | 1,759 | 2,049 | ||||||||||||
|
Money market
|
569 | 617 | 2,210 | 2,518 | ||||||||||||
|
Savings
|
24 | 38 | 133 | 150 | ||||||||||||
|
Time
|
1,593 | 3,558 | 10,464 | 19,097 | ||||||||||||
|
Total deposit interest expense
|
2,659 | 4,675 | 14,566 | 23,814 | ||||||||||||
|
Short-term borrowings
|
508 | 524 | 2,071 | 2,987 | ||||||||||||
|
Federal Home Loan Bank advances
|
3 | 25 | 68 | 907 | ||||||||||||
|
Long-term debt
|
2,646 | 3,082 | 10,977 | 10,201 | ||||||||||||
|
Total interest expense
|
5,816 | 8,306 | 27,682 | 37,909 | ||||||||||||
|
Net interest revenue
|
55,499 | 55,763 | 218,158 | 228,068 | ||||||||||||
|
Provision for credit losses
|
3,000 | 14,000 | 65,500 | 62,500 | ||||||||||||
|
Net interest revenue after provision for loan losses
|
52,499 | 41,763 | 152,658 | 165,568 | ||||||||||||
|
Fee revenue:
|
||||||||||||||||
|
Service charges and fees
|
8,166 | 8,375 | 31,997 | 31,670 | ||||||||||||
|
Mortgage loan and other related fees
|
1,713 | 3,262 | 9,925 | 10,483 | ||||||||||||
|
Brokerage fees
|
1,361 | 751 | 4,465 | 3,082 | ||||||||||||
|
Securities gains, net
|
70 | 31 | 186 | 7,078 | ||||||||||||
|
Loss from prepayment of debt
|
- | - | - | (6,681 | ) | |||||||||||
|
Other
|
2,209 | 2,226 | 10,025 | 10,480 | ||||||||||||
|
Total fee revenue
|
13,519 | 14,645 | 56,598 | 56,112 | ||||||||||||
|
Total revenue
|
66,018 | 56,408 | 209,256 | 221,680 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
24,817 | 23,586 | 96,233 | 96,026 | ||||||||||||
|
Communications and equipment
|
3,414 | 3,320 | 13,233 | 12,940 | ||||||||||||
|
Occupancy
|
3,735 | 3,455 | 13,930 | 14,304 | ||||||||||||
|
Advertising and public relations
|
781 | 987 | 3,718 | 3,855 | ||||||||||||
|
Postage, printing and supplies
|
882 | 1,050 | 3,283 | 3,899 | ||||||||||||
|
Professional fees
|
2,102 | 2,685 | 9,617 | 8,792 | ||||||||||||
|
Foreclosed property
|
191 | 4,611 | 7,869 | 13,993 | ||||||||||||
|
FDIC assessments and other regulatory charges
|
1,804 | 2,505 | 9,219 | 10,097 | ||||||||||||
|
Amortization of intangibles
|
408 | 727 | 2,031 | 2,917 | ||||||||||||
|
Other
|
3,480 | 7,800 | 15,171 | 19,951 | ||||||||||||
|
Total operating expenses
|
41,614 | 50,726 | 174,304 | 186,774 | ||||||||||||
|
Net income before income taxes
|
24,404 | 5,682 | 34,952 | 34,906 | ||||||||||||
|
Income tax expense (benefit)
|
8,493 | 421 | (238,188 | ) | 1,050 | |||||||||||
|
Net income
|
15,911 | 5,261 | 273,140 | 33,856 | ||||||||||||
|
Preferred stock dividends and discount accretion
|
2,912 | 3,045 | 12,078 | 12,148 | ||||||||||||
|
Net income available to common shareholders
|
$ | 12,999 | $ | 2,216 | $ | 261,062 | $ | 21,708 | ||||||||
|
Earnings per common share
|
||||||||||||||||
|
Basic
|
$ | .22 | $ | .04 | $ | 4.44 | $ | .38 | ||||||||
|
Diluted
|
.22 | .04 | 4.44 | .38 | ||||||||||||
|
Weighted average common shares outstanding
|
||||||||||||||||
|
Basic
|
59,923 | 57,971 | 58,787 | 57,857 | ||||||||||||
|
Diluted
|
59,925 | 57,971 | 58,845 | 57,857 | ||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||||
|
Consolidated Balance Sheet
|
||||||||
|
December 31,
|
December 31,
|
|||||||
|
(in thousands, except share and per share data)
|
2013
|
2012
|
||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
Cash and due from banks
|
$ | 71,230 | $ | 66,536 | ||||
|
Interest-bearing deposits in banks
|
119,669 | 124,613 | ||||||
|
Short-term investments
|
37,999 | 60,000 | ||||||
|
Cash and cash equivalents
|
228,898 | 251,149 | ||||||
|
Securities available for sale
|
1,832,217 | 1,834,593 | ||||||
|
Securities held to maturity (fair value $485,585 and $261,131)
|
479,742 | 244,184 | ||||||
|
Mortgage loans held for sale
|
10,319 | 28,821 | ||||||
|
Loans, net of unearned income
|
4,329,266 | 4,175,008 | ||||||
|
Less allowance for loan losses
|
(76,762 | ) | (107,137 | ) | ||||
|
Loans, net
|
4,252,504 | 4,067,871 | ||||||
|
Assets covered by loss sharing agreements with the FDIC
|
22,882 | 47,467 | ||||||
|
Premises and equipment, net
|
163,589 | 168,920 | ||||||
|
Bank owned life insurance
|
80,670 | 81,867 | ||||||
|
Accrued interest receivable
|
19,598 | 18,659 | ||||||
|
Intangible assets
|
3,480 | 5,510 | ||||||
|
Foreclosed property
|
4,221 | 18,264 | ||||||
|
Net deferred tax asset
|
258,518 | - | ||||||
|
Other assets
|
68,781 | 34,954 | ||||||
|
Total assets
|
$ | 7,425,419 | $ | 6,802,259 | ||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
|
Liabilities:
|
||||||||
|
Deposits:
|
||||||||
|
Demand
|
$ | 1,388,512 | $ | 1,252,605 | ||||
|
NOW
|
1,427,939 | 1,316,453 | ||||||
|
Money market
|
1,227,575 | 1,149,912 | ||||||
|
Savings
|
251,125 | 227,308 | ||||||
|
Time:
|
||||||||
|
Less than $100,000
|
892,961 | 1,055,271 | ||||||
|
Greater than $100,000
|
588,689 | 705,558 | ||||||
|
Brokered
|
424,704 | 245,033 | ||||||
|
Total deposits
|
6,201,505 | 5,952,140 | ||||||
|
Short-term borrowings
|
53,241 | 52,574 | ||||||
|
Federal Home Loan Bank advances
|
120,125 | 40,125 | ||||||
|
Long-term debt
|
129,865 | 124,805 | ||||||
|
Unsettled securities purchases
|
29,562 | - | ||||||
|
Accrued expenses and other liabilities
|
95,406 | 51,210 | ||||||
|
Total liabilities
|
6,629,704 | 6,220,854 | ||||||
|
Shareholders’ equity:
|
||||||||
|
Preferred stock, $1 par value; 10,000,000 shares authorized;
|
||||||||
|
Series A; $10 stated value; 0 and 21,700 shares issued and outstanding
|
- | 217 | ||||||
|
Series B; $1,000 stated value; 105,000 and 180,000 shares issued and outstanding
|
105,000 | 178,557 | ||||||
|
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;
|
||||||||
|
46,243,345 and 42,423,870 shares issued and outstanding
|
46,243 | 42,424 | ||||||
|
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
|
||||||||
|
13,188,206 and 15,316,794 shares issued and outstanding
|
13,188 | 15,317 | ||||||
|
Common stock issuable; 241,832 and 133,238 shares
|
3,930 | 3,119 | ||||||
|
Capital surplus
|
1,078,676 | 1,057,951 | ||||||
|
Accumulated deficit
|
(448,091 | ) | (709,153 | ) | ||||
|
Accumulated other comprehensive loss
|
(19,844 | ) | (23,640 | ) | ||||
|
Total shareholders’ equity
|
795,715 | 581,405 | ||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,425,419 | $ | 6,802,259 | ||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||||||
|
Average Consolidated Balance Sheets and Net Interest Analysis
|
||||||||||||||||||||||||
|
For the Three Months Ended December 31,
|
||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
|
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)
|
$ | 4,315,370 | $ | 49,205 | 4.52 | % | $ | 4,190,725 | $ | 53,366 | 5.07 | % | ||||||||||||
|
Taxable securities (3)
|
2,258,938 | 11,050 | 1.96 | 2,065,311 | 9,622 | 1.86 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
20,681 | 332 | 6.42 | 22,483 | 358 | 6.37 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
227,622 | 1,108 | 1.95 | 203,090 | 1,104 | 2.17 | ||||||||||||||||||
|
Total interest-earning assets
|
6,822,611 | 61,695 | 3.59 | 6,481,609 | 64,450 | 3.96 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(81,335 | ) | (112,846 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
61,083 | 54,714 | ||||||||||||||||||||||
|
Premises and equipment
|
165,286 | 169,967 | ||||||||||||||||||||||
|
Other assets (3)
|
402,328 | 184,398 | ||||||||||||||||||||||
|
Total assets
|
$ | 7,369,973 | $ | 6,777,842 | ||||||||||||||||||||
|
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,372,367 | 473 | .14 | $ | 1,261,796 | 462 | .15 | ||||||||||||||||
|
Money market
|
1,367,589 | 569 | .17 | 1,200,701 | 617 | .20 | ||||||||||||||||||
|
Savings
|
250,418 | 24 | .04 | 224,624 | 38 | .07 | ||||||||||||||||||
|
Time less than $100,000
|
907,042 | 1,164 | .51 | 1,082,761 | 1,982 | .73 | ||||||||||||||||||
|
Time greater than $100,000
|
604,490 | 1,029 | .68 | 715,902 | 1,673 | .93 | ||||||||||||||||||
|
Brokered time deposits
|
271,490 | (600 | ) | (.88 | ) | 135,708 | (97 | ) | (.28 | ) | ||||||||||||||
|
Total interest-bearing deposits
|
4,773,396 | 2,659 | .22 | 4,621,492 | 4,675 | .40 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
54,839 | 508 | 3.68 | 67,403 | 524 | 3.09 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
6,647 | 3 | .18 | 39,092 | 25 | .25 | ||||||||||||||||||
|
Long-term debt
|
129,865 | 2,646 | 8.08 | 149,564 | 3,082 | 8.20 | ||||||||||||||||||
|
Total borrowed funds
|
191,351 | 3,157 | 6.55 | 256,059 | 3,631 | 5.64 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
4,964,747 | 5,816 | .46 | 4,877,551 | 8,306 | .68 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,416,483 | 1,251,327 | ||||||||||||||||||||||
|
Other liabilities
|
132,557 | 63,785 | ||||||||||||||||||||||
|
Total liabilities
|
6,513,787 | 6,192,663 | ||||||||||||||||||||||
|
Shareholders’ equity
|
856,186 | 585,179 | ||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,369,973 | $ | 6,777,842 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 55,879 | $ | 56,144 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.13 | % | 3.28 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.26 | % | 3.45 | % | ||||||||||||||||||||
| (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 losses of $6.33 million in 2013 and pretax unrealized gains of $22.2 million in 2012 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,
|
||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
|
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)
|
$ | 4,254,159 | $ | 201,278 | 4.73 | % | $ | 4,165,520 | $ | 217,705 | 5.23 | % | ||||||||||||
|
Taxable securities (3)
|
2,169,024 | 40,331 | 1.86 | 2,065,162 | 43,657 | 2.11 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
21,228 | 1,354 | 6.38 | 23,759 | 1,565 | 6.59 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
204,303 | 4,360 | 2.13 | 292,857 | 4,740 | 1.62 | ||||||||||||||||||
|
Total interest-earning assets
|
6,648,714 | 247,323 | 3.72 | 6,547,298 | 267,667 | 4.09 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(95,411 | ) | (114,647 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
63,174 | 53,247 | ||||||||||||||||||||||
|
Premises and equipment
|
167,424 | 172,544 | ||||||||||||||||||||||
|
Other assets (3)
|
290,098 | 206,609 | ||||||||||||||||||||||
|
Total assets
|
$ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||
|
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,285,842 | 1,759 | .14 | $ | 1,293,510 | 2,049 | .16 | ||||||||||||||||
|
Money market
|
1,315,385 | 2,210 | .17 | 1,140,354 | 2,518 | .22 | ||||||||||||||||||
|
Savings
|
244,725 | 133 | .05 | 216,880 | 150 | .07 | ||||||||||||||||||
|
Time less than $100,000
|
974,470 | 5,850 | .60 | 1,170,202 | 9,788 | .84 | ||||||||||||||||||
|
Time greater than $100,000
|
654,102 | 5,115 | .78 | 766,411 | 8,027 | 1.05 | ||||||||||||||||||
|
Brokered time deposits
|
219,215 | (501 | ) | (.23 | ) | 155,902 | 1,282 | .82 | ||||||||||||||||
|
Total interest-bearing deposits
|
4,693,739 | 14,566 | .31 | 4,743,259 | 23,814 | .50 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
66,561 | 2,071 | 3.11 | 80,593 | 2,987 | 3.71 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
32,604 | 68 | .21 | 124,771 | 907 | .73 | ||||||||||||||||||
|
Long-term debt
|
131,081 | 10,977 | 8.37 | 127,623 | 10,201 | 7.99 | ||||||||||||||||||
|
Total borrowed funds
|
230,246 | 13,116 | 5.70 | 332,987 | 14,095 | 4.23 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
4,923,985 | 27,682 | .56 | 5,076,246 | 37,909 | .75 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,333,199 | 1,142,236 | ||||||||||||||||||||||
|
Other liabilities
|
84,506 | 64,986 | ||||||||||||||||||||||
|
Total liabilities
|
6,341,690 | 6,283,468 | ||||||||||||||||||||||
|
Shareholders’ equity
|
732,309 | 581,583 | ||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 219,641 | $ | 229,758 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.16 | % | 3.34 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.30 | % | 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 $4.36 million in 2013 and pretax unrealized gains of $23.6 million in 2012 are included in other assets for purposes of this presentation.
|
| (4) |
Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
|
|
Exhibit 99.2 |
Fourth Quarter 2013 Investor Presentation United Community Banks, Inc. Jimmy C. Tallent President & Chief Executive Officer H. Lynn Harton Chief Operating Officer Rex S. Schuette Executive Vice President & Chief Financial Officer rex_schuette@ucbi.com (706) 781 - 2266 David P. Shearrow Executive Vice President & Chief Risk Officer
Cautionary Statement This investor presentation may contain 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 2012 Annual Report on Form 10 - K and its most recent quarterly report on Form 10 - Q 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 . 2 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 : core fee revenue, core operating expense, core earnings, 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 : fee revenue, operating expense, net income (loss), 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 .
United at a Glance □ Founded in 1950 □ Third - largest bank holding company in Georgia □ Headquartered in Blairsville, Georgia with 102 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina, western South Carolina, and east Tennessee □ 1,506 employees Market Offices Deposit Share Rank North Georgia 22 34% 1 Total assets $7.43 Atlanta MSA 36 4 6 Total deposits $6.20 Gainesville MSA 5 12 4 Loans $4.33 Coastal Georgia 8 4 7 Western North Carolina 19 13 3 East Tennessee 8 2 8 Deposit Market Share (1) Key Statistics as of 12/31/13 (billions) 1 FDIC deposit market share and rank as of June 30, 2013 for markets where United takes deposits. Source: SNL and FDIC. Excludes 3 Loan Production Offices in Georiga and Tennessee and one newly formed bank in Greenville, SC. 3
Business and Operating Model 4 Service is Point of Differentiation • #1 in Customer Satisfaction according to Customer Service Profiles • Nationally recognized customer service • Golden rule of banking – treating people the way we want to be treated • “The Bank that SERVICE Built” • Customer surveys continue with 95 %+ satisfaction rate “Community bank service, large bank resources” Twenty - eight “community banks” Local CEOs with deep roots in their communities Resources of a $7.4 billion bank Strategic footprint with substantial banking opportunities Operates in a number of the more demographically attractive U.S. markets Disciplined growth strategy Organic supported by de novos and selective acquisitions
Highlights Fourth Quarter 5 Improving Quarterly Results • Net income of $15.9 million, or $.22 per share, compared to $5.3 million, or $.04 per share a year ago • Return on assets of .86% vs. .31% a year ago • Return on common equity of 7.5% vs. 2.2% a year ago Solid Improvement in All Credit Quality Metrics from One Year Ago • Credit metrics at pre - credit crisis levels for second half of 2013 • Credit costs decline substantially: Provision of $3.0 million / foreclosure costs of $191 thousand • Net charge - offs decline to $4.45 million or .41% of total loans • Allowance of $76.8 million or 1.77% of total loans • NPAs declined to $31.0 million and .42% of total assets Operating Efficiencies Strengthen in 2013 • Efficiency ratio of 60.0%; significantly down from 71.7% a year ago • FDIC costs and professional fees decline from both linked quarter and year ago • Continued focus on reducing costs and improving fee revenue
Highlights Fourth Quarter 6 Core Fee Revenue Challenges • Lower mortgage volume and fees • Offset partially by higher brokerage fees Loan Growth Returns to Mid - Single Digit Levels • Net loan growth this quarter of $62 million, or 6% annualized • Driven by commercial and home equity products Continued Strong Core Transaction Deposit Growth • Up $22 million in the fourth quarter or 3% annualized • Up $224 million from year ago or 7% • Represents 60% of total customer deposits compared to 34% at the end of 2008 Solid Capital Ratios and Improved Debt Position • Repaid all TARP preferred stock of $180 million in early January 2014 without issuing common stock • Tier I Common to Risk Weighted Assets of 9.3%; Tangible Common to RWAs of 13.2% • Tier 1 Risk Based Capital of 12.7% and Tier I Leverage of 9.1%
2014 Goals 7 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 • Grow loans in the high - single digits • Increase core transaction deposits in the mid - single digits • Modest growth in net interest revenue with slight margin compression through the year • Credit costs and trends continue at or below 3Q/4Q 2013 levels • Modest growth in fee revenue despite weaker mortgage fees • Lower operating expenses driven by non - personnel costs • Effective tax rate increases by two percent due to mix of taxable earnings
5 Quarters ROA With Actual EPS 8 Earnings Per Share Return on Assets Basis Points 31 70 84 86 86 30 40 50 60 70 80 $.04 $.15 $.20 $.21 $.22 $.00 $.04 $.08 $.12 $.16 $.20 $.24 4Q12 1Q13 2Q13 3Q13 4Q13 Long - term goal of 1% ROA
FINANCIAL REVIEW United Community Banks, Inc. 9
Core Earnings & Core Fee Revenue 10 CORE EARNINGS 4Q13 3Q13 4Q12 Net Interest Revenue 55,879$ 1,622$ (265)$ Fee Revenue 13,219 (747) (1,332) Gross Revenue 69,098 875 (1,597) Operating Expense (Excl OREO) 41,193 1,868 (296) Pre-Tax, Pre-Credit (Core) 27,905$ (993)$ (1,301)$ Net Interest Margin 3.26 % - % (.19)% Variance - Increase / (Decrease) CORE FEE REVENUE 4Q13 3Q13 4Q12 Overdraft Fees 3,199$ (4)$ (265)$ Interchange Fees 3,691 (261) (10) Other Service Charges 1,276 (25) 66 Total Service Charges and Fees 8,166 (290) (209) Mortgage Loan & Related Fees 1,713 (841) (1,549) Brokerage Fees 1,361 87 610 Other 1,979 297 (184) Total Fee Revenue - Core 13,219 (747) (1,332) Non-Core (1) 300 41 206 Reported - GAAP 13,519$ (706)$ (1,126)$ Variance - Increase / (Decrease) $ in thousands (1) Includes securities gains (losses), gains from gains from the sale of low income housing credits, deferred compensation gains, and BOLI death benefit gain. $56.1 $54.6 $54.9 $54.2 $55.9 $41.5 $40.9 $42.1 $39.3 $41.2 $29.2 $26.3 $26.9 $28.9 $27.9 $14.6 $12.6 $14.1 $14.0 $13.2 $10 $20 $30 $40 $50 $60 4Q12 1Q13 1Q13 3Q13 4Q13 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue $ in millions Core Earnings $27.9 Million Down $1.0 million from 3Q13 and down $1.3 million from a year ago
Core Operating Expenses 11 4Q13 3Q13 4Q12 Salaries & Employee Benefits 24,587$ 2,075$ 1,627$ Communications & Equipment 3,414 109 94 Occupancy 3,735 356 280 FDIC Assessment 1,804 (601) (701) Advertising & Public Relations 781 (181) (206) Postage, Printing & Supplies 882 238 (168) Professional Fees 2,102 (548) (583) Other Expense 3,888 420 (639) Core Operating Expenses 41,193 1,868 (296) Non-Core (1) 421 (351) (8,816) Reported GAAP 41,614$ 1,517$ (9,112)$ Efficiency Ratio 60.0 % 1.4 % (11.7) % Variance - Increase / (Decrease) $ in thousands (1) Includes foreclosed property costs, severance, and deferred compensation gains.
$56.0 $54.7 $54.6 $54.3 $55.9 $45 $49 $53 $57 4Q12 1Q13 2Q13 3Q13 4Q13 3.44% 3.38% 3.31% 3.26% 3.26% 3.00% 3.25% 3.50% Net Interest Margin Key Drivers of Net Interest Revenue / Margin 12 5.07% 4.69% 4.52% 1.86% 1.80% 1.96% .40% .31% .22% 0% 2% 4% 6% 4Q12 1Q13 2Q13 3Q13 4Q13 Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s Net Interest Revenue & Margin $ in millions Key Drivers of NIR – Loan Growth Net Interest Revenue • 4Q13 growth impacted by: x Net loan growth x Higher securities yield x Offset partially by loan pricing competition .30 .30 .20 .19 .18 .21 .18 .16 .16 .17 .14 .13 .13 .13 .14 0 .10 .20 .30 4Q12 1Q13 2Q13 3Q13 4Q13 CDs MMDA NOW Key Drivers of NIR – Deposit Pricing (excl. brokered) • CD pricing reflects the quarter - average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter
Net Income 13 $ in thousands NET OPERATING INCOME 4Q13 3Q13 4Q12 Core Earnings (Pre-Tax, Pre-Credit) 27,905$ (993)$ (1,301)$ Provision for Loan Loss 3,000 - (11,000) NON-CORE FEE REVENUE: Securities Gains (Losses) 70 70 39 BOLI Death Benefit Gain - (86) - Gains (Losses) on Deferred Compensation Plan Assets 230 57 167 Total Non-Core Fee Revenue 300 41 206 NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 326 (3) (1,112) Foreclosed Property (Gains) Losses on Sales (761) (113) (2,511) Forclosed Property Maintenance Expenses 626 113 (797) Severance Costs - (405) (563) Provision for Litigation Settlement - - (4,000) Gains (Losses) on Deferred Comp Plan Liability 230 57 167 Total Non-Core Operating Expenses 421 (351) (8,816) Income Tax Expense 8,873 (1,012) 8,071 Net Income 15,911$ 411$ 10,650$ Preferred Stock Dividends 2,912 (147) (133) Net Income Avail to Common Shareholders 12,999$ 558$ 10,783$ Net Income Per Share .22$ .01$ .18$ Tangible Book Value 11.26$ .31$ 4.69$ Return on Assets .86 % - % .55 % Return on Common Equity 7.52 .14 5.42 Variance - Increase / (Decrease) 4Q13 15.9$ 3Q13 15.5$ 2Q13 230.0$ 1Q13 11.8 4Q12 5.3 Outstanding Shares 59.9 Million Prior Quarterly Net Income $ in millions
Customer Deposit Mix & Core Growth 14 Time >$100M 10% Demand & NOW 34% Deposits by % / Customer Mix Public Funds 16% Time <$100M 15% MMDA & Sav 25% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% $ in millions 4Q13 $5.8B 60%* 2Q08 $6.2B 34%* 4Q13 3Q13 4Q12 4Q08 Demand / NOW 1,969$ 1,979$ 1,841$ 1,457$ MMDA / Savings 1,468 1,437 1,372 630 Core Transaction 3,437 3,416 3,213 2,087 Time < $100,000 888 920 1,050 1,945 Public Deposits 863 734 739 755 Total Core 5,188 5,070 5,002 4,787 Time >$100,000 557 593 674 1,336 Public Deposits 32 31 31 87 Total Customer 5,777 5,694 5,707 6,210 Brokered Deposits 425 419 245 793 Total Deposits 6,202$ 6,113$ 5,952$ 7,003$ Total Deposit Mix Significant growth in core transaction deposits since 4Q08 Core Deposit Growth – Category & Market CATEGORY 4Q13 YTD MARKET 4Q13 YTD Demand (26.0)$ 123.0$ Atlanta 3.7$ 75.0$ MM Accounts 29.9 73.0 N. Georgia (0.9) 61.9 Savings 2.0 23.8 North Carolina (0.8) 41.5 NOW 15.8 4.7 Coastal Georgia (2.8) 2.5 Total Categories 21.7$ 224.5$ Tennessee 3.5 3.80 Gainesville 4.1 19.2 Growth (Annualized) 3 % 7%South Carolina 14.9 20.6 21.7$ 224.5$ Growth Growth *% of core transaction customer deposits
Capital Ratios 15 Holding Company Well-Cap 4Q13 3Q13 2Q13 1Q13 4Q12 Tier I RBC 6 % 12.7 % 14.2 % 13.7 % 14.3 % 14.2 % Total RBC 10 14.0 15.5 15.2 15.9 15.7 Leverage 5 9.1 10.0 9.8 9.7 9.6 Tier 1 Common RBC 9.3 9.0 8.5 8.9 8.8 Tangible Common to Assets 9.0 9.0 6.3 5.7 5.7 Tangible Equity to Assets 11.6 11.8 9.1 8.5 8.6 Bank Well- Cap 4Q13 3Q13 2Q13 1Q13 4Q12 Tier 1 RBC 6 % 13.6 % 14.5 % 14.2 % 14.7 % 14.5 % Total RBC 10 14.8 15.7 15.5 16.0 15.7 Leverage 5 9.6 10.2 10.1 10.0 9.9
LOAN PORTFOLIO & CREDIT QUALITY United Community Banks, Inc. 16
Retail 31% $1.308 C&I 34% $1.424 Inv RE 17% $.699 Diversifying Portfolio Retail 38% $1.623 C&I 37% $1.605 Inv RE 14% $.623 Loan Portfolio (total $4.33 billion) 17 17 Commercial 55% $2.38 Geographic Diversity Residential Mortgage 30% $1.31 Period $ in Billions 4Q13 $4.329 3Q13 $4.267 2Q13 $4.189 1Q13 $4.194 4Q12 $4.175 By Loan Type 1Q11 $4.194 4Q13 $4.329 $ in billions Reduced concentrations of A&D and Investor RE loans Other (Indirect Auto) $ .196 Gainesville MSA $ .255 East Tennessee $ .280 Coastal Georgia $ .423 Western North Carolina $ .572 North Georgia $ 1.240 South Carolina $.088 Atlanta MSA $ 1.275 0% 12% 24% 36% 6% 6% 10% 13% 29% 29% Loan Diversification & Type • Reducing land exposure • Focus on small business and C&I • Enhanced retail products Total Loans 2% 5%
$309.0 $274.4 $403.8 $370.9 $324.5 $200 $250 $300 $350 $400 4Q12 1Q13 2Q13 3Q13 4Q13 New Loans Funded and Advances (1) 18 $ in m illions CATEGORY 4Q13 3Q13 4Q13 3Q13 Commercial C & I 58.7$ 64.5$ Atlanta 111.1$ 116.6$ Owner Occupied CRE 54.1 58.2 Coastal Georgia 30.3 40.5 Income Producing CRE 44.9 28.1 N. Georgia 51.1 71.5 Commercial Constr. 3.1 4.9 North Carolina 25.6 38.4 Total Commercial 160.8 155.7 Tennessee 22.6 18.9 Residential Mortgage 33.2 49.8 Gainesville 10.4 18.6 Residential HELOC 50.7 55.4 South Carolina 42.9 13.5 Residential Construction 37.4 32.5 Other (Indirect Auto) 30.5 52.9 Consumer 42.4 77.5 Total Markets 324.5$ 370.9$ Total Categories 324.5 370.9 New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)
Commercial Loans (total $2.38 billion) 19 Owner Occupied 48% $1.13B Geographic Diversity Income Producing 26% $.62B C & I 20% $.47B $ in billions East Tennessee $ .136 Gainesville MSA $ .177 Western North Carolina $ .169 Coastal Georgia $ .299 North Georgia $ .566 South Carolina $ .085 Atlanta MSA $.946 0% 12% 24% 36% 6% 7% 7% 13% 24% 40% Average Loan Size Type $ in Thousands Owner Occup’d $427 Income Prod 600 C & I 94 Comm Constr 387 By Loan Type 4%
Retail (total $1.62 billion) 20 Geographic Diversity Home Equity LOC 27% $.441B Avg loan size $48 thousand $ in millions South Carolina $ .003 Coastal Georgia $ .105 East Tennessee $ .131 Atlanta MSA $ .261 Western North Carolina $ .332 North Georgia $ .525 Gainesville MSA $.069 Indirect Auto $.196 0% 12% 24% 36% 0% 7% 9% 16% 21% 32% By Loan Type Success with new portfolio products and HELOCs Conservative underwriting 63% of HE Primary Lien Mortgage 54% $.875B Avg loan size $73 thousand* 5% *Includes lower balance Home Equity LOC; Non - Home Equity average loan size is $100 thousand 12%
Residential Construction (total $328 million) 21 Geographic Diversity Raw 12% $38 Lot 51% $166 $ in millions East Tennessee $ 12 Gainesville MSA $ 9 Coastal Georgia $ 18 Atlanta MSA $ 68 Western North Carolina $ 72 North Georgia $ 149 0% 12% 24% 36% 48% 3% 4% 6% 19% 22% 46% By Loan Type Developing 11% $39 4Q13 3Q13 2Q13 1Q13 4Q12 4Q13 vs. 4Q12 TOTAL COMPANY Land Loans Developing 39$ 40$ 42$ 57$ 62$ (23)$ Raw 38 35 36 42 46 (8) Lot 166 167 173 188 193 (27) Total 243 242 251 287 301 (58) Construction Loans Spec 23 30 34 40 41 (18) Sold 62 46 47 45 40 22 Total 85 76 81 85 81 4 Total 328$ 318$ 332$ 372$ 382$ (54)$
Credit Quality 22 $ in millions 4Q13 3Q13 2Q13 1Q13 4Q12 Net Charge-offs 4.4$ 4.5$ 72.4$ 12.4$ 14.5$ as % of Average Loans 0.41 % .42 % 6.87 % 1.21 % 1.39 % Allowance for Loan Losses 76.8$ 80.4$ 81.8$ 105.8$ 107.1$ as % of Total Loans 1.77 % 1.88 % 1.95 % 2.52 % 2.57 % as % of NPLs 29 308 294 110 97 Past Due Loans (30 - 89 Days) .58% .45% .49% .66% .65% Non-Performing Loans 26.8$ 26.1$ 27.9$ 96.0$ 109.9$ OREO 4.2 4.5 3.9 16.7 18.3 Total NPAs 31.0 30.6 31.8 112.7 128.2 Performing Classified Loans 172.7 173.6 176.3 271.7 261.9 Total Classified Assets 203.7$ 204.2$ 208.1$ 384.4$ 390.1$ as % of Tier 1 / Allowance 27 % 26 % 27 % 49 % 50 % Accruing TDRs (see page 28) 78.7$ 79.8$ 77.8$ 126.0$ 122.8$ As % of Original Principal Balance Non-Performing Loans 65.3 % 61.6 % 62.6 % 66.3 % 69.5 % OREO 44.5 41.5 31.6 45.0 39.7 Total NPAs as % of Total Assets .42 .42 .44 1.65 1.88 as % of Loans & OREO .72 .72 .76 2.68 3.06
Non - Performing Loans (NPLs) Inflow Trends $20.2 $9.7 $13.2 $10.0 $11.0 $0 $10 $20 $30 4Q12 1Q13 2Q13 3Q13 4Q13 Resi Constr Comm Constr Resi Mtg Comm RE Comm Consumer 23 Quarterly NPL Inflows $ in millions Total NPLs $109.9 $96.0 $27.9 $26.1 $26.8 $0 $30 $60 $90 $120 4Q12 1Q13 2Q13 3Q13 4Q13 Single Customer $ in millions
Performing Classified Loans 24 $ in millions BY CATEGORY 4Q12 1Q13 2Q13 3Q13 4Q13 Commercial: Commercial & Industrial 18$ 20$ 11$ 10$ 9$ Owner Occupied 65 71 43 40 43 Total C & I 83 91 54 50 52 Income Producing CRE 53 57 36 36 34 Commercial Constr 19 18 16 17 17 Total Commercial 155 166 106 103 104 Residential Mortgage 65 64 51 53 52 Residential Construction 38 38 17 16 14 Consumer / Installment 4 3 2 2 3 Total Performing Classified 262$ 271$ 176$ 174$ 173$ Classified to Tier 1 + ALL 50% 49% 27% 26% 27% $261.9 $271.7 $176.3 $173.6 $172.7 $170 $220 $270 $320 4Q12 1Q13 2Q13 3Q13 4Q13
$122.8 $126.0 $77.8 $79.8 $78.7 $ - $50 $100 $150 $200 4Q12 1Q13 2Q13 3Q13 4Q13 TDRs 25 LOAN TYPE 4Q13 vs. 4Q12 4Q13 vs. 4Q12 4Q13 vs. 4Q12 Commercial (Sec by RE) 38.0$ 64.0$ 2.7$ 12.2$ 40.7$ 76.2$ Commercial & Industrial 3.1 7.0 .1 .2 3.2 7.2 Commercial Construction 13.0 16.4 - 17.5 13.0 33.9 Total Commercial 54.1 87.4 2.8 29.9 56.9 117.3 Residential Mortgage 16.2 17.2 3.1 2.1 19.3 19.3 Residential Construction 8.2 17.9 2.3 5.9 10.5 23.8 Consumer Installment .2 .3 .1 .1 .3 .4 Total 78.7$ 122.8$ 8.3$ 38.0$ 87.0$ 160.8$ Accruing (1) Non-Accruing Total TDRs $ in millions Accruing TDRs (1) 76.97 percent of accruing TDR loans have an interest rate of 4 percent or greater Accruing TDR past due 30 – 89 days – 3.4% 26.5% of accruing TDRs are pass credits
Net Charge - offs by Category & Market 26 $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 3Q13 2Q13 1Q13 4Q12 Commercial (Sec. by RE): Owner Occupied 1,638$ .57 % .58 % 5.85 % .69 % 1.76 % Income Producing 320 .21 .14 5.45 1.99 .67 Total Comm (Sec. by RE) 1,958 .44 .49 5.70 1.18 1.35 Commercial & Industrial (149) (.13) .12 13.91 1.34 .12 Commercial Construction (9) (.02) .39 17.53 (.01) 4.25 Total Commercial 1,800 .30 .36 7.96 1.14 1.30 - 2.52 Residential Mortgage 1,426 .64 .31 2.52 .79 1.55 Home Equity LOC 417 .38 .37 1.04 .53 .49 Residential Construction 327 .40 1.31 20.91 3.22 2.52 Consumer/ Installment 475 .62 .28 .10 1.35 1.10 Total Net Charge-offs 4,445$ .41 .42 6.87 1.21 1.39 NET CHARGE-OFFS BY MARKET North Georgia 1,603$ .51 % .66 % 17.20 % 1.45 % 1.29 % Atlanta MSA 636 .20 .33 3.21 1.07 1.27 North Carolina 1,104 .76 .49 1.36 1.59 1.39 Coastal Georgia 345 .33 .14 .49 .85 .60 Gainesville MSA 346 .54 .15 .19 .67 2.04 East Tennessee 323 .46 .51 1.01 .98 2.98 South Carolina - - - - - - Other (Indirect Auto) 88 .20 .17 .24 .39 .19 4Q13 % of Average Loans (Annualized)
$128.2 $112.7 $31.8 $30.6 $31.0 $0 $50 $100 $150 4Q12* 1Q13 2Q13 3Q13 4Q13 Non - Performing Loans Foreclosed Properties (OREO) NPAs by Loan Category & Market 27 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 5,822$ 832$ 6,654$ Owner Occupied 12,599$ 4,989$ 17,588$ Income Producing 2,518 - 2,518 Income Producing 9,549 490 10,039 Commercial & Industrial 427 - 427 Commercial & Industrial 31,817 - 31,817 Commercial Construction 361 - 361 Commercial Construction 23,843 2,204 26,047 Total Commercial 9,128 832 9,960 Total Commercial 77,808 7,683 85,491 Residential Mortgage 11,730 2,684 14,414 Residential Mortgage 11,151 4,753 15,904 HELOC 1,448 389 1,837 HELOC 1,438 - 1,438 Residential Construction 4,264 316 4,580 Residential Construction 18,702 5,828 24,530 Consumer/ Installment 249 - 249 Consumer/ Installment 795 - 795 Total 26,819$ 4,221$ 31,040$ Total 109,894$ 18,264$ 128,158$ MARKET MARKET Gainesville 928$ -$ 928$ Gainesville 903$ 556$ 1,459$ Coastal Georgia 2,342 173 2,515 Coastal Georgia 3,810 1,609 5,419 East Tennessee 1,800 187 1,987 East Tennessee 5,661 1,859 7,520 North Carolina 6,567 683 7,250 North Carolina 11,014 2,579 13,593 Atlanta MSA 2,830 684 3,514 Atlanta MSA 18,556 3,442 21,998 North Georgia 12,352 2,494 14,846 North Georgia 69,950 8,219 78,169 -$ 4Q13 4Q12 *NPAs to total assets – .42% / Allowance to loans at 1.77% Non Performing Assets $ in thousands $ in millions
APPENDIX United Community Banks, Inc. 28
Experienced Proven Leadership 29 Jimmy C. Tallent President & CEO Joined 1984 H. Lynn Harton Chief Operating Officer Joined 2012 Rex S. Schuette EVP & CFO Joined 2001 David P. Shearrow EVP & CRO Joined 2007 Bill M. Gilbert Director of Banking Joined 2000 Timothy K. Schools Chief Strategy Officer Joined 2011 • Over 39 years in banking • Led company from $42 million in assets in 1989 to $7.4 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 30 years in banking • Responsible for overall operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 35 years in banking • Responsible for accounting, finance and reporting activities, M&A, and investor relations • Former CAO and Controller for State Street Corporation • Former ABA Accounting Committee Chairman • Over 30 years in banking • Responsible for Risk Management and Credit Risk Administration; Co - Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 35 years in banking • Responsible for 28 community banks with 102 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 20 years in financial services and banking • Responsible for strategic planning and implementation • Former President of American Savings Bank; and CFO & CRO of The South Financial Group
Market Share Opportunities & Demographics 30 Population Actual Projected Markets 1 (in thousands) 2010 - 2012 2012 - 2017 Atlanta, GA MSA 5,365 2% 5% East Tennessee 868 2 4 Greenville-Mauldin-Easley, SC MSA 651 2 6 Western North Carolina 446 2 4 Coastal Georgia 390 2 7 North Georgia 387 1 2 Gainesville, GA MSA 182 1 6 Total Markets Georgia 9,858 2 5 North Carolina 9,759 2 6 Tennessee 6,452 2 4 South Carolina 4,740 2 6 United States 313,129 1 3 ¹ Population data is for 2012 and includes those markets where United takes deposits. No deposits in SC. Data Source: SNL Population Growth (%) FAST GROWING MARKETS North Georgia $ 6.4 $ 2.2 11 22 34% 1 Western North Carolina 10.9 .9 1 20 8 3 Gainesville MSA 2.7 .3 1 5 12 4 Atlanta MSA 54.4 2.2 10 36 4 7 Coastal Georgia 7.0 .3 2 8 4 7 East Tennessee 15.6 .3 2 8 2 8 Total Markets $ 97.0 $ 6.2 27 99 ¹ FDIC deposit market share and rank as of 6/13 for markets where United takes deposits. Data Source: SNL and FDIC. 2 Based on current quarter. 3 Excludes four loan production offices EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1) Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1) “ Surround yourself with the best people you can find, delegate authority , and don’t interfere.” - Ronald Reagan
LOANS / DEPOSITS WHOLESALE BORROWINGS Liquidity 31 $ in millions 4Q13 3Q13 4Q12 vs 4Q12 Loans 4,329$ 4,267$ 4,175$ 62$ 154$ Core (DDA, MMDA, Savings) 3,437$ 3,416$ 3,213$ 21$ 224$ Public Funds 895 765 770 130 125 CD's 1,445 1,513 1,724 (68) (279) Total Deposits (excl Brokered) 5,777$ 5,694$ 5,707$ 83$ 70$ Loan to Deposit Ratio 75% 75% 73% Investment Securities: Available for Sale -Fixed 881$ 1,138$ 1,126$ (257)$ (245)$ -Floating 951 825 712 126 239 Held to Maturity -Fixed 473 197 222 276 251 -Floating 7 9 22 (2) (15) Total Investment Securities 2,312 2,169 2,082 143 230 Percent of Assets (Excludes Floating) 18% 18% 20% vs 3Q13 Variance Unused Capacity 4Q13 3Q13 4Q12 vs 3Q13 vs 4Q12 Wholesale Borrowings Brokered Deposits 1,372$ (1) 412$ 419$ 245$ (7)$ 167$ FHLB 1,110 120 - 40 120 80 Fed Funds 598 - - - - - Other Wholesale - 53 54 53 (1) - Total 3,080$ 585$ 473$ 338$ 112$ 247$ Long-Term Debt Senior Debt 75$ 75$ 35$ -$ 40$ Sub-Debt - - 35 - (35) Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 130$ 130$ 125$ -$ 5$ (1) Estimated Brokered Deposit Total Capacity at 25% of Assets Variance
Business Mix – Deposits at quarter - end 32 $ in millions 4Q13 vs. DEPOSITS BY CATEGORY 4Q13 3Q13 2Q13 1Q13 4Q12 4Q12 Demand & Now 1,969$ 1,979$ 1,916$ 1,894$ 1,841$ 128$ MMDA & Savings 1,468 1,437 1,406 1,401 1,372 96 Core Transaction Deposits 3,437 3,416 3,322 3,295 3,213 224 Time < $100,000 888 920 977 1,014 1,050 (162) Time ≥ $100,000 < $250,000 443 473 512 528 547 (104) Public Deposits 863 734 674 700 739 124 Total Core Deposits 5,631 5,543 5,485 5,537 5,549 82 Time ≥ $250,000 114 120 120 125 127 (13) Public Deposits 32 31 32 32 31 1 Total Customer Deposits 5,777 5,694 5,637 5,694 5,707 70 Brokered Deposits 425 419 375 332 245 180 Total Deposits 6,202$ 6,113$ 6,012$ 6,026$ 5,952$ 250$
Core Transaction Deposits 33 $1,335 $894 $577 $221 $212 $177 $21 $1,332 $895 $578 $217 $214 $174 $6 $0 $200 $400 $600 $800 $1,000 $1,200 Atlanta MSA North Georgia North Carolina Gainesville MSA Coastal Georgia East Tennessee South Carolina 3Q13 4Q13 Core Transactions / Total Deposits % 3Q13 South Carolina 99.0 % 96.4 % Gainesville MSA 70.2 68.8 Coastal GA 67.9 68.1 East TN 63.6 63.8 North Carolina 63.5 63.0 Atlanta MSA 61.6 62.0 North Georgia 50.4 52.1 Total 59.5 % 60.0 % 4Q13 $ in millions
Lending & Credit Environment 34 Regional Credit Review – Standard Underwriting • House Lending Limit $25 • Project Lending Limit 15 • Top 25 Relationships 349.2 PROACTIVELY ADDRESSING CREDIT ENVIRONMENT STRUCTURE PROCESS • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement POLICY • Ongoing enhancements to credit policy • Periodic updates to portfolio limits • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals x Weekly past due meetings x Weekly NPA/ORE meetings x Quarterly criticized watch loan review meetings x Quarterly pass commercial and CRE portfolio review meetings $ in millions
Commercial Construction & Real Estate 35 Amount Percent Land Develop - Vacant (Improved) 58$ 40.3 % Raw Land - Vacant (Unimproved) 34 23.6 Commercial Land Development 15 10.4 Multi-Residential 9 6.3 Churches 8 5.6 Retail Building 6 4.2 Miscellaneous 5 3.5 Office Buildings 2 1.4 Warehouse 2 1.4 Mfg Facility 2 1.4 Carwash 2 1.4 Franchise / Restaurants 1 .7 Total Commercial Construction 144$ 31-Dec-13 COMMERCIAL CONSTRUCTION $ in millions Owner Occupied Income Producing Total Percent Office Buildings 310.4$ 163.7$ 474.1$ 26.91 % Retail 103.0 146.4 249.3 14.15 Small Warehouses / Storage 125.6 59.7 185.3 10.52 Churches 144.4 - 144.4 8.20 Other Properties 90.3 35.6 125.9 7.15 Convenience Stores 87.2 16.3 103.5 5.88 Hotels / Motels - 82.6 82.6 4.69 Franchise / Restaurants 36.4 30.3 66.6 3.78 Multi-Residential / Other Properties - 47.7 47.7 2.71 Farmland 53.4 - 53.4 3.03 Manufacturing Facility 49.0 5.6 54.6 3.10 Leasehold Property 17.4 13.0 30.4 1.73 Golf Course / Recreation 27.3 - 27.3 1.55 Auto Dealership / Service 17.6 8.6 26.2 1.49 Automotive Service 17.9 .1 17.9 1.02 Daycare Facility 11.3 7.0 18.3 1.04 Funeral Home 15.4 .6 16.0 0.91 Carwash 15.2 - 15.2 0.86 Marina 7.4 - 7.4 0.42 Mobile Home Parks - 5.6 5.6 0.32 Movie Theater / Bowling Recreation 4.8 - 4.8 0.27 Assisted Living / Nursing Home 5.0 - 5.0 0.28 Total Commercial Real Estate 1,138.9$ 622.8$ 1,761.7$ 31-Dec-13 COMMERCIAL REAL ESTATE Average Loan Size ($ in thousands) • Commercial Construction $387 • Commercial RE: • Composite CRE 462 • Owner Occupied 427 • Income Producing 600 Commercial RE Characteristics • 64.5% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $15 million project limit
Loans by Business Mix and Region 36 $ in millions 4Q13 3Q13 2Q13 1Q13 4Q12 4Q13 vs. 4Q12 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 472$ 457$ 437$ 454$ 458$ 14$ Owner Occ'd 1,134 1,129 1,119 1,130 1,131 3 Total C & I 1,606 1,586 1,556 1,584 1,589 17 Income Prod CRE 623 614 629 674 682 (59) Comm Constr 149 137 133 152 155 (6) Total Comm 2,378 2,337 2,318 2,410 2,426 (48) Resi Mortgage 1,316 1,309 1,278 1,246 1,214 102 Resi Constr 328 318 332 372 382 (54) Consum / Install 307 303 261 166 153 154 Total Loans 4,329$ 4,267$ 4,189$ 4,194$ 4,175$ 154$ 4Q13 3Q13 2Q13 1Q13 4Q12 4Q13 vs. 4Q12 QUARTERLY LOANS - BY REGION North Georgia 1,240$ 1,262$ 1,265$ 1,363$ 1,364$ (124)$ Atlanta MSA 1,275 1,246 1,227 1,262 1,250 25 North Carolina 572 575 576 575 579 (7) Coastal Georgia 423 421 397 398 400 23 Gainesville MSA 255 253 256 259 261 (6) East Tennessee 280 277 282 282 283 (3) South Carolina 88 47 34 - - 88 Other (Ind. Auto) 196 186 152 55 38 158 Total Loans 4,329$ 4,267$ 4,189$ 4,194$ 4,175$ 154$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 472$ 458$ 428$ 441$ 390$ Owner Occ'd 1,134 1,131 1,112 980 963 Total C & I 1,606 1,589 1,540 1,421 1,353 Income Prod CRE 623 682 710 781 816 Comm Constr 149 155 164 297 363 Total Comm 2,378 2,426 2,414 2,499 2,532 Resi Mortgage 1,316 1,214 1,135 1,279 1,427 Resi Constr 328 382 448 695 1,050 Consum / Install 307 153 113 131 142 Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BY REGION North Georgia 1,240$ 1,364$ 1,426$ 1,689$ 1,884$ Atlanta MSA 1,275 1,250 1,220 1,310 1,435 North Carolina 572 579 597 702 772 Coastal Georgia 423 400 346 335 405 Gainesville MSA 255 261 265 312 390 East Tennessee 280 283 256 256 265 South Carolina 88 - - - - Other (Ind. Auto) 196 38 - - - Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$
Non GAAP Reconciliation Tables 37 4Q13 3Q13 2Q13 1Q13 4Q12 CORE FEE REVENUE Core fee revenue 13,219$ 13,966$ 14,063$ 12,618$ 14,551$ Securities gains, net 70 - - 116 31 Gains from sales of low income housing tax credits - - 468 - - BOLI death benefit gain - 86 1,366 - - Mark to market on deferred compensation plan assets 230 173 46 177 63 Fee revenue (GAAP) 13,519$ 14,225$ 15,943$ 12,911$ 14,645$ CORE OPERATING EXPENSE Core operating expense 41,193$ 39,325$ 42,067$ 40,900$ 41,489$ Foreclosed property expense 191 194 5,151 2,333 4,611 Severance - 405 1,559 360 563 Provision for litigation settlement - - - - 4,000 Mark to market on deferred compensation plan liability 230 173 46 177 63 Operating expense (GAAP) 41,614$ 40,097$ 48,823$ 43,770$ 50,726$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 8.99 % 9.02 % 6.30 % 5.66 % 5.67 % Effect of preferred equity 2.60 2.74 2.83 2.87 2.88 Tangible equity to tangible assets 11.59 11.76 9.13 8.53 8.55 Effect of goodwill and other intangibles .03 .04 .06 .07 .08 Equity to assets (GAAP) 11.62 % 11.80 % 9.19 % 8.60 % 8.63 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 13.17 % 13.34 % 13.16 % 8.45 % 8.26 % Effect of preferred equity 2.38 4.01 4.11 4.22 4.24 Tangible equity to risk weighted assets 15.55 17.35 17.27 12.67 12.50 Effect of deferred tax limitation (4.25) (4.72) (4.99) - - Effect of other comprehensive income .39 .49 .29 .49 .51 Effect of trust preferred 1.04 1.09 1.11 1.15 1.15 Tier I capital ratio (Regulatory) 12.73 % 14.21 % 13.68 % 14.31 % 14.16 % Operating Earnings to GAAP Earnings Reconciliation $ in thousands