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United Community Banks, Inc. Reports Diluted Earnings per Share of 15 Cents for Second Quarter 2008
United Community Banks, Inc. Reports Diluted Earnings per Share of 15 Cents for Second Quarter 2008
Jul 24, 2008
BLAIRSVILLE, GA, Jul 24, 2008 (MARKET WIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI) today announced diluted operating earnings per share of 15 cents for the second quarter of 2008, compared to 46 cents per share for the second quarter of 2007. Total operating revenue on a taxable equivalent basis was $61.4 million for the quarter, compared to $80.8 million for the second quarter of 2007. Net operating income was $7.1 million, compared to $21.1 million in the second quarter of 2007. Operating return on tangible equity was 5.86 percent and return on assets was .34 percent for the second quarter of 2008, compared to 17.52 percent and 1.12 percent a year ago, respectively. Second quarter 2007 financial results included a $15 million special provision for fraud-related loan losses resulting from a failed real estate development near Spruce Pine, North Carolina. Because this was a fraud-related matter and an isolated and non-recurring event, the company has shown the special provision separate from the regular provision for loan losses and has highlighted operating earnings measures, which excluded this provision, to provide a better understanding of our underlying earnings and credit trends.
"While our operating environment continued to be very challenging in the second quarter, our solid earnings base, supported by experienced management and locations in growing markets, continues to sustain our company and keep it positioned to manage through this cycle. Despite this, we were able to cover our credit losses and strengthen our capital ratios," stated Jimmy Tallent, president and chief executive officer. "We continued to actively manage our loan portfolio, quickly identifying problem loans and aggressively taking action to move these loans and assets off our books."
Loans were down $66 million to $5.93 billion from the second quarter of 2007, and down $35 million on a linked quarter basis as the company continued to reduce its exposure to the residential construction and housing markets. At June 30, 2008, residential construction loans were $1.75 billion, or 29 percent of total loans, a decrease of $268 million from a year ago and $46 million from last quarter.
"Total loans declined from last quarter and a year ago, primarily due to a decrease in residential construction loans and we expect that trend to continue," Tallent said. "However, we did see solid growth in both commercial and residential mortgage loans of 6 percent and we expect to see slow loan growth for several more quarters. At the same time, we are very pleased with our continued progress in reducing exposure to residential construction and creating a more balanced risk portfolio."
Total customer deposits increased $148 million, or 2 percent, over second quarter 2007 and increased $417 million, or 29 percent on an annualized basis, over the prior quarter. "We ran a very successful program this quarter to increase liquidity through the promotion of customer time deposits that added $407 million to our liquidity during the second quarter," stated Tallent. "The time deposit promotion did not erode core deposits, which grew by a modest amount."
Taxable equivalent net interest revenue of $61.8 million reflected a decrease of $6.2 million from the second quarter of 2007. Taxable equivalent net interest margin was 3.32 percent, compared with 3.55 percent for the first quarter of 2008 and 3.94 percent for the second quarter of 2007. "We continued to see margin compression in the second quarter," Tallent said. "Continued competitive deposit pricing, coupled with the full quarter impact of declining rates and a higher level of non-performing assets were key contributors."
The second quarter provision for loan losses was $15.5 million. Net charge-offs for the second quarter were $14.3 million compared with $7.1 million for the first quarter of 2008 and $2.1 million for the second quarter of 2007. Annualized net charge-offs to average loans was 97 basis points for the second quarter of 2008 compared to 48 basis points for the first quarter of 2008 and 15 basis points for the second quarter of 2007.
"Net charge-offs increased this quarter as we moved problem credits off our books," said Tallent. "With the higher level of non-performing loans we expect foreclosure activity will rise for the next two quarters as we move non-performing loans through the collection process. We expect charge-offs to increase as a result."
At quarter-end, non-performing assets totaled $152.2 million, compared with $89.9 million at March 31, 2008 and $43.6 million at June 30, 2007. The ratio of non-performing assets to total assets at the end of each quarter was 1.84, 1.07 and .54 percent, respectively.
"The significant rise in non-performing assets this quarter is coming from the loan migration process," stated Tallent. "While non-performing assets were up sharply, most loans were already classified in the prior quarter and moved to non-performing status this quarter. Total classified loans were flat compared to the first quarter. We now are seeing the migration of these problem assets through the collection process."
"A positive development in credit quality this quarter was a decrease in loans past due more than 30 days to 1.10 percent of loans from 1.39 percent in the first quarter," added Tallent. "Although this was good to see, we know that the uncertainties in the economy will continue and we expect to see further increases in non-performing assets and credit costs this year."
Fee revenue of $15.1 million was down $1.4 million from the second quarter of 2007 and increased $900,000 from last quarter. Service charges and fees on deposit accounts of $8.0 million were up slightly from last quarter and flat with the second quarter of 2007. Mortgage fees were up $239,000 from last quarter, mostly seasonal, but down $274,000 from last year due to the slowdown in the housing market. Brokerage fees were down $378,000 from last year due to market conditions. Other fee revenue of $1.5 million was down $925,000 from last year primarily due to gains realized last year from the sale of foreclosed properties and a lower level of earnings on bank-owned life insurance and deferred compensation plan assets.
Operating expenses of $49.8 million reflected an increase of $2.1 million, or 4 percent, from the second quarter of 2007. Salaries and employee benefit costs of $28.8 million declined $1.3 million, or 4 percent, from last year due to lower incentive accruals. Other expenses of $7.6 million were $3.5 million higher than a year ago due to additional write-downs and related costs on foreclosed properties of $2.5 million and an increase in FDIC insurance premiums of $900,000. "We have continued to manage our salary costs, and have held staff levels flat year over year," Tallent stated. "Most of the operating expense categories were flat or down compared to last year as we focused on reducing discretionary spending."
"All of our regulatory capital ratios continue to be very strong," Tallent continued. "At June 30, 2008 our estimated Tier I Risk-Based Capital ratio was 9.17 percent, Leverage was 7.03 percent and Total Risk-Based was 11.40 percent. Also, our tangible equity-to-asset ratio was 6.77 percent. We have modeled our capital requirements under a number of loss scenarios and believe we have a strong capital position as well as a solid base of core earnings and allowance to work through this credit cycle without issuing common stock."
"This quarter has been challenging, and we've seen increases in non-performing assets and related credit costs," commented Tallent. "We have made progress getting our arms around these issues and remain intently focused on credit quality, capital and liquidity levels. While we were certainly challenged this quarter, our solid earnings base continues to sustain the company and keep it positioned to grow our business when things improve."
Conference Call
United Community Banks will hold a conference call on Thursday, July 24, 2008, at 11 a.m. ET to discuss the contents of this news release, as well as share business highlights for the quarter. The telephone number for the conference call is (877) 419-6598 and the pass code is "UCBI." The conference call will also be available by web cast within the Investor Relations section of the company's web site at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.3 billion and operates 27 community banks with 108 banking offices located throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company's web site at www.ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward-Looking Statements" on page 4 of United Community Banks, Inc.'s annual report filed on Form 10-K with the Securities and Exchange Commission.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2008 2007
------------------------ ------------
(in thousands, except per share Second First Fourth
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 116,984 $ 129,041 $ 140,768
Interest expense 55,231 62,754 71,038
----------- ----------- -----------
Net interest revenue 61,753 66,287 69,730
Provision for loan losses (1) 15,500 7,500 26,500
Fee revenue 15,105 14,197 16,100
----------- ----------- -----------
Total operating revenue 61,358 72,984 59,330
Operating expenses 49,761 47,529 49,336
----------- ----------- -----------
Income before taxes 11,597 25,455 9,994
Income taxes 4,504 9,377 3,960
----------- ----------- -----------
Net operating income 7,093 16,078 6,034
Fraud loss provision, net of tax (1) - - 1,833
----------- ----------- -----------
Net income $ 7,093 $ 16,078 $ 4,201
=========== =========== ===========
OPERATING PERFORMANCE (1)
Earnings per common share:
Basic $ .15 $ .34 $ .13
Diluted .15 .34 .13
Return on equity (2) 3.41% 7.85% 2.89%
Return on tangible equity
(2)(3)(4) 5.86 13.16 5.06
Return on assets (4) .34 .78 .29
Dividend payout ratio 60.00 26.47 69.23
GAAP PERFORMANCE MEASURES
Per common share:
Basic earnings $ .15 $ .34 $ .09
Diluted earnings .15 .34 .09
Cash dividends declared .09 .09 .09
Book value 17.75 18.50 17.70
Tangible book value (3) 11.03 11.76 10.92
Key performance ratios:
Return on equity (2)(4) 3.41% 7.85% 2.01%
Return on assets .34 .78 .20
Net interest margin (4) 3.32 3.55 3.73
Efficiency Ratio 65.05 59.05 57.67
Dividend payout ratio 60.00 26.47 100.00
Equity to assets 10.33 10.30 10.20
Tangible equity to assets (3) 6.77 6.73 6.58
ASSET QUALITY
Allowance for loan losses $ 91,035 $ 89,848 $ 89,423
Net charge-offs (1) 14,313 7,075 13,012
Non-performing loans 123,786 67,728 28,219
OREO 28,378 22,136 18,039
----------- ----------- -----------
Total non-performing assets 152,164 89,864 46,258
Allowance for loan losses to loans
(1) 1.53% 1.51% 1.51%
Net charge-offs to average loans
(1)(4) .97 .48 .87
Non-performing assets to loans and
OREO 2.55 1.50 .78
Non-performing assets to total
assets 1.84 1.07 .56
AVERAGE BALANCES
Loans $ 5,933,143 $ 5,958,296 $ 5,940,230
Investment securities 1,507,240 1,485,515 1,404,796
Earning assets 7,478,018 7,491,480 7,424,992
Total assets 8,295,748 8,305,621 8,210,120
Deposits 6,461,361 6,051,069 6,151,476
Shareholders' equity 856,727 855,659 837,195
Common shares - basic 47,060 46,966 47,203
Common shares - diluted 47,249 47,272 47,652
AT PERIOD END
Loans $ 5,933,141 $ 5,967,839 $ 5,929,263
Investment securities 1,430,588 1,508,402 1,356,846
Total assets 8,264,051 8,386,255 8,207,302
Deposits 6,696,456 6,175,769 6,075,951
Shareholders' equity 837,890 871,452 831,902
Common shares outstanding 47,096 47,004 46,903
(1) Excludes effect of special $15 million fraud-related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and
$18 million of related loan charge-offs recorded in the fourth quarter
of 2007.
(2) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which
excludes accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2007 Second
------------------------ Quarter
(in thousands, except per share Third Second 2008-2007
data; taxable equivalent) Quarter Quarter Change
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 144,884 $ 136,237
Interest expense 73,203 68,270
----------- -----------
Net interest revenue 71,681 67,967 (9)%
Provision for loan losses (1) 3,700 3,700
Fee revenue 15,615 16,554 (9)
----------- -----------
Total operating revenue 83,596 80,821 (24)
Operating expenses 48,182 47,702 4
----------- -----------
Income before taxes 35,414 33,119 (65)
Income taxes 12,878 12,043
----------- -----------
Net operating income 22,536 21,076 (66)
Fraud loss provision, net of tax (1) - 9,165
----------- -----------
Net income $ 22,536 $ 11,911 (40)
=========== ===========
OPERATING PERFORMANCE (1)
Earnings per common share:
Basic $ .47 $ .47 (68)
Diluted .46 .46 (67)
Return on equity (2) 10.66% 12.47%
Return on tangible equity
(2)(3)(4) 17.54 17.52
Return on assets (4) 1.11 1.12
Dividend payout ratio 19.15 19.15
GAAP PERFORMANCE MEASURES
Per common share:
Basic earnings $ .47 $ .26 (42)
Diluted earnings .46 .26 (42)
Cash dividends declared .09 .09 -
Book value 17.51 16.96 5
Tangible book value (3) 10.81 10.43 6
Key performance ratios:
Return on equity (2)(4) 10.66% 7.05%
Return on assets 1.11 .64
Net interest margin (4) 3.89 3.94
Efficiency Ratio 55.34 56.59
Dividend payout ratio 19.15 34.62
Equity to assets 10.32 8.94
Tangible equity to assets (3) 6.65 6.65
ASSET QUALITY
Allowance for loan losses $ 90,935 $ 92,471
Net charge-offs (1) 5,236 2,124
Non-performing loans 46,783 30,849
OREO 16,554 12,752
----------- -----------
Total non-performing assets 63,337 43,601
Allowance for loan losses to loans
(1) 1.28% 1.29%
Net charge-offs to average loans
(1)(4) .35 .15
Non-performing assets to loans and
OREO 1.06 .73
Non-performing assets to total
assets .77 .54
AVERAGE BALANCES
Loans $ 5,966,933 $ 5,619,950 6
Investment securities 1,308,192 1,242,448 21
Earning assets 7,332,492 6,915,134 8
Total assets 8,083,739 7,519,392 10
Deposits 6,246,319 5,945,633 9
Shareholders' equity 834,094 672,348 27
Common shares - basic 48,348 44,949
Common shares - diluted 48,977 45,761
AT PERIOD END
Loans $ 5,952,749 $ 5,999,093 (1)
Investment securities 1,296,826 1,213,659 18
Total assets 8,180,600 8,087,667 2
Deposits 6,154,308 6,361,269 5
Shareholders' equity 833,761 828,731 1
Common shares outstanding 47,542 48,781
(1) Excludes effect of special $15 million fraud-related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and $18 million of
related loan charge-offs recorded in the fourth quarter of 2007.
(2) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which
excludes accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Six
Months Ended YTD
(in thousands, except per share ------------------------ 2008-2007
data; taxable equivalent) 2008 2007 Change
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 246,025 $ 265,265
Interest expense 117,985 132,193
----------- -----------
Net interest revenue 128,040 133,072 (4)%
Provision for loan losses (1) 23,000 7,400
Fee revenue 29,302 30,936 (5)
----------- -----------
Total operating revenue 134,342 156,608 (14)
Operating expenses 97,290 92,543 5
----------- -----------
Income before taxes 37,052 64,065 (42)
Income taxes 13,881 23,644
----------- -----------
Net operating income 23,171 40,421 (43)
Fraud loss provision, net of tax (1) - 9,165
----------- -----------
Net income $ 23,171 $ 31,256 (26)
=========== ===========
OPERATING PERFORMANCE (1)
Earnings per common share:
Basic $ .49 $ .92 (47)
Diluted .49 .90 (46)
Return on equity (2) 5.61% 9.64%
Return on tangible equity
(2)(3)(4) 9.46 17.36
Return on assets (4) .56 1.12
Dividend payout ratio 36.73 19.57
GAAP PERFORMANCE MEASURES
Per common share:
Basic earnings $ .49 $ .71 (31)
Diluted earnings .49 .70 (30)
Cash dividends declared .18 .18 -
Book value 17.75 16.96 5
Tangible book value (3) 11.03 10.43 6
Key performance ratios:
Return on equity (2)(4) 5.61% 9.64%
Return on assets .56 .86
Net interest margin (4) 3.43 3.96
Efficiency Ratio 61.97 56.57
Dividend payout ratio 36.73 25.35
Equity to assets 10.31 8.87
Tangible equity to assets (3) 6.75 6.65
ASSET QUALITY
Allowance for loan losses $ 91,035 $ 92,471
Net charge-offs (1) 21,388 3,586
Non-performing loans 123,786 30,849
OREO 28,378 12,752
----------- -----------
Total non-performing assets 152,164 43,601
Allowance for loan losses to loans
(1) 1.53% 1.29%
Net charge-offs to average loans
(1)(4) .72 .13
Non-performing assets to loans and
OREO 2.55 .73
Non-performing assets to total
assets 1.84 .54
AVERAGE BALANCES
Loans $ 5,945,720 $ 5,512,005 8
Investment securities 1,496,377 1,198,075 25
Earning assets 7,484,749 6,757,959 11
Total assets 8,300,686 7,307,231 14
Deposits 6,256,217 5,855,530 7
Shareholders' equity 856,193 648,358 32
Common shares - basic 47,013 43,980
Common shares - diluted 47,260 44,842
AT PERIOD END
Loans $ 5,933,141 $ 5,999,093 (1)
Investment securities 1,430,588 1,213,659 18
Total assets 8,264,051 8,087,667 2
Deposits 6,696,456 6,361,269 5
Shareholders' equity 837,890 828,731 1
Common shares outstanding 47,096 48,781
(1) Excludes effect of special $15 million fraud-related provision for
loan losses recorded in the second quarter of 2007, an additional $3
million provision in the fourth quarter of 2007, and $18 million of
related loan charge-offs recorded in the fourth quarter of 2007.
(2) Net income available to common shareholders, which excludes preferred
stock dividends, divided by average realized common equity, which
excludes accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2008 2007
----------------------- -----------
Second First Fourth
(in millions) Quarter Quarter Quarter
----------- ----------- -----------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,584 $ 1,526 $ 1,476
Commercial construction 522 548 527
Commercial & industrial 417 437 418
----------- ----------- -----------
Total commercial 2,523 2,511 2,421
Residential construction 1,745 1,791 1,830
Residential mortgage 1,494 1,491 1,502
Consumer / installment 171 175 176
----------- ----------- -----------
Total loans $ 5,933 $ 5,968 $ 5,929
=========== =========== ===========
LOANS BY MARKET
Atlanta MSA $ 1,934 $ 1,978 $ 2,002
Gainesville MSA 422 415 400
North Georgia 2,065 2,071 2,060
Western North Carolina 819 816 806
Coastal Georgia 436 439 416
East Tennessee 257 249 245
----------- ----------- -----------
Total loans $ 5,933 $ 5,968 $ 5,929
=========== =========== ===========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 569 $ 583 $ 593
Land loans 139 130 126
Lot loans 401 406 407
----------- ----------- -----------
Total 1,109 1,119 1,126
----------- ----------- -----------
House loans
Spec 450 460 473
Sold 186 212 231
----------- ----------- -----------
Total 636 672 704
----------- ----------- -----------
Total residential construction $ 1,745 $ 1,791 $ 1,830
=========== =========== ===========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development $ 232 $ 252 $ 258
Land loans 50 50 52
Lot loans 117 117 117
----------- ----------- -----------
Total 399 419 427
----------- ----------- -----------
House loans
Spec 271 271 280
Sold 58 71 77
----------- ----------- -----------
Total 329 342 357
----------- ----------- -----------
Total residential construction $ 728 $ 761 $ 784
=========== =========== ===========
(1) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
------------------- Linked Year over
Third Second Quarter Year
(in millions) Quarter Quarter Change(1) Change
--------- --------- --------- ---------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,441 $ 1,461 15% 8%
Commercial construction 527 509 (19) 3
Commercial & industrial 408 421 (18) (1)
--------- ---------
Total commercial 2,376 2,391 2 6
Residential construction 1,939 2,013 (10) (13)
Residential mortgage 1,459 1,413 1 6
Consumer / installment 179 182 (9) (6)
--------- ---------
Total loans $ 5,953 $ 5,999 (2) (1)
========= =========
LOANS BY MARKET
Atlanta MSA $ 2,057 $ 2,134 (9)% (9)%
Gainesville MSA 394 384 7 10
North Georgia 2,026 2,032 (1) 2
Western North Carolina 834 816 1 -
Coastal Georgia 402 396 (3) 10
East Tennessee 240 237 13 8
--------- ---------
Total loans $ 5,953 $ 5,999 (2) (1)
========= =========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 596 $ 602 (10)% (5)%
Land loans 125 113 28 23
Lot loans 403 393 (5) 2
--------- ---------
Total 1,124 1,108 (4) -
--------- ---------
House loans
Spec 539 596 (9)% (24)%
Sold 276 309 (49) (40)
--------- ---------
Total 815 905 (21) (30)
--------- ---------
Total residential construction $ 1,939 $ 2,013 (10) (13)
========= =========
RESIDENTIAL CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition & development $ 268 $ 278 (32)% (17)%
Land loans 50 49 - 2
Lot loans 123 136 - (14)
--------- ---------
Total 441 463 (19) (14)
--------- ---------
House loans
Spec 322 371 - % (27)%
Sold 104 132 (73) (56)
--------- ---------
Total 426 503 (15) (35)
--------- ---------
Total residential construction $ 867 $ 966 (17) (25)
========= =========
(1) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Second Quarter 2008
-----------------------------------
Nonaccrual Total
(in thousands) Loans OREO NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 4,610 $ 593 $ 5,203
Commercial construction 3,027 1,859 4,886
Commercial & industrial 2,950 - 2,950
----------- ----------- -----------
Total commercial 10,587 2,452 13,039
Residential construction 90,283 22,075 112,358
Residential mortgage 21,792 3,851 25,643
Consumer / installment 1,124 - 1,124
----------- ----------- -----------
Total NPAs $ 123,786 $ 28,378 $ 152,164
=========== =========== ===========
NPAs BY MARKET
Atlanta MSA $ 89,327 $ 15,196 $ 104,523
Gainesville MSA 4,885 12 4,897
North Georgia 16,117 8,277 24,394
Western North Carolina 9,838 990 10,828
Coastal Georgia 1,575 3,871 5,446
East Tennessee 2,044 32 2,076
----------- ----------- -----------
Total NPAs $ 123,786 $ 28,378 $ 152,164
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
First Quarter 2008
-----------------------------------
Nonaccrual Total
(in thousands) Loans OREO NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 4,070 $ 653 $ 4,723
Commercial construction 1,514 961 2,475
Commercial & industrial 1,936 - 1,936
----------- ----------- -----------
Total commercial 7,520 1,614 9,134
Residential construction 42,249 16,486 58,735
Residential mortgage 16,965 4,036 21,001
Consumer / installment 994 - 994
----------- ----------- -----------
Total NPAs $ 67,728 $ 22,136 $ 89,864
=========== =========== ===========
NPAs BY MARKET
Atlanta MSA $ 37,442 $ 16,121 $ 53,563
Gainesville MSA 4,584 909 5,493
North Georgia 11,969 3,385 15,354
Western North Carolina 7,775 1,405 9,180
Coastal Georgia 5,266 95 5,361
East Tennessee 692 221 913
----------- ----------- -----------
Total NPAs $ 67,728 $ 22,136 $ 89,864
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Fourth Quarter 2007
-----------------------------------
Nonaccrual Total
(in thousands) Loans OREO NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec. by RE) $ - $ 68 $ 68
Commercial construction - 507 507
Commercial & industrial 3,366 - 3,366
----------- ----------- -----------
Total commercial 3,366 575 3,941
Residential construction 11,544 14,987 26,531
Residential mortgage 12,479 2,477 14,956
Consumer / installment 830 - 830
----------- ----------- -----------
Total NPAs $ 28,219 $ 18,039 $ 46,258
=========== =========== ===========
NPAs BY MARKET
Atlanta MSA $ 11,548 $ 13,019 $ 24,567
Gainesville MSA 1,544 - 1,544
North Georgia 5,469 3,469 8,938
Western North Carolina 7,455 1,178 8,633
Coastal Georgia 691 95 786
East Tennessee 1,512 278 1,790
----------- ----------- -----------
Total NPAs $ 28,219 $ 18,039 $ 46,258
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Second Quarter 2008 First Quarter 2008
------------------------ ------------------------
Net Charge- Net Charge-
Offs to Offs to
Net Average Net Average
(in thousands) Charge-Offs Loans (2) Charge-Offs Loans (2)
----------- ------------ ----------- ------------
NET CHARGE-OFFS BY
CATEGORY
Commercial (sec. by RE) $ 424 .11% $ 630 .17%
Commercial construction 125 .09 - -
Commercial & industrial 398 .38 304 .29
----------- -----------
Total commercial 947 .15 934 .15
Residential construction 10,343 2.36 4,665 1.03
Residential mortgage 2,576 .70 1,011 .27
Consumer / installment 447 1.05 465 1.06
----------- -----------
Total NPAs $ 14,313 .97 $ 7,075 .48
=========== ===========
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 10,682 2.22% $ 4,647 .94%
Gainesville MSA 360 .34 323 .32
North Georgia 1,829 .36 1,280 .25
Western North Carolina 279 .14 57 .03
Coastal Georgia 980 .90 42 .04
East Tennessee 183 .29 726 1.18
----------- -----------
Total NPAs $ 14,313 .97 $ 7,075 .48
=========== ===========
(1) Fourth quarter residential construction charge-offs exclude $18
million in fraud-related charge-offs resulting from the failed real
estate development near Spruce Pine, North Carolina
(2) Annualized
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Fourth Quarter 2007 (1)
-------------------------
Net Charge-
Offs to
Net Average
(in thousands) Charge-Offs Loans (2)
----------- ------------
NET CHARGE-OFFS BY CATEGORY
Commercial (sec. by RE) $ 167 .05%
Commercial construction - -
Commercial & industrial 507 .49
-----------
Total commercial 674 .11
Residential construction 10,109 2.13
Residential mortgage 1,671 .45
Consumer / installment 559 1.25
-----------
Total NPAs $ 13,013 .87
===========
NET CHARGE-OFFS BY MARKET
Atlanta MSA $ 8,740 1.72%
Gainesville MSA 231 .23
North Georgia 2,071 .40
Western North Carolina 285 .14
Coastal Georgia (10) (.01)
East Tennessee 1,696 2.76
-----------
Total NPAs $ 13,013 .87
===========
(1) Fourth quarter residential construction charge-offs exclude $18
million in fraud-related charge-offs resulting from the failed real
estate development near Spruce Pine, North Carolina
(2) Annualized
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
(in thousands, except per share data)
2008 2007
------------------- --------
Second First Fourth
Quarter Quarter Quarter
--------- --------- --------
Special provision for fraud-related loan
losses $ - $ - $ 3,000
--------- --------- --------
Income tax effect of special provision - - 1,167
--------- --------- --------
After-tax effect of special
provision $ - $ - $ 1,833
========= ========= ========
Net Income Reconciliation
Operating net income $ 7,093 $ 16,078 $ 6,034
After-tax effect of special provision and
merger-related charges - - (1,833)
--------- --------- --------
Net income (GAAP) $ 7,093 $ 16,078 $ 4,201
========= ========= ========
Basic Earnings Per Share Reconciliation
Basic operating earnings per share $ .15 $ .34 $ .13
Per share effect of special provision and
merger-related charges - - (.04)
--------- --------- --------
Basic earnings per share (GAAP) $ .15 $ .34 $ .09
========= ========= ========
Diluted Earnings Per Share Reconciliation
Diluted operating earnings per share $ .15 $ .34 $ .13
Per share effect of special provision and
merger-related charges - - (.04)
--------- --------- --------
Diluted earnings per share (GAAP) $ .15 $ .34 $ .09
========= ========= ========
Provision for Loan Losses Reconciliation
Operating provision for loan losses $ 15,500 $ 7,500 $ 26,500
Special provision for fraud-related loan
losses - - 3,000
--------- --------- --------
Provision for loan losses (GAAP) $ 15,500 $ 7,500 $ 29,500
========= ========= ========
Nonperforming Assets Reconciliation
Nonperforming assets excluding fraud-related
assets $ 148,219 $ 85,182 $ 40,956
Fraud-related loans and OREO included in
nonperforming assets 3,945 4,682 5,302
--------- --------- --------
Nonperforming assets (GAAP) $ 152,164 $ 89,864 $ 46,258
========= ========= ========
Allowance for Loan Losses Reconciliation
Allowance for loan losses excluding special
fraud-related allowance $ 91,035 $ 89,848 $ 89,423
Fraud-related allowance for loan losses - - -
--------- --------- --------
Allowance for loan losses (GAAP) $ 91,035 $ 89,848 $ 89,423
========= ========= ========
Net Charge-Offs Reconciliation
Net charge-offs excluding charge-off of
fraud-related loans $ 14,313 $ 7,075 $ 13,012
Fraud-related loans charged off - - 18,000
--------- --------- --------
Net charge-offs (GAAP) $ 14,313 $ 7,075 $ 31,012
========= ========= ========
Allowance for Loan Losses to Loans Ratio
Reconciliation
Allowance for loan losses to loans ratio
excluding fraud-related allowance 1.53% 1.51% 1.51%
Portion of allowance assigned to
fraud-related loans - - -
--------- --------- --------
Allowance for loan losses to loans
ratio (GAAP) 1.53% 1.51% 1.51%
========= ========= ========
Nonperforming Assets to Total Assets Ratio
Reconciliation
Nonperforming assets to total assets ratio
excluding fraud-related assets 1.79% 1.02% .50%
Fraud-related nonperforming assets .05 .05 .06
--------- --------- --------
Nonperforming assets to total assets
ratio (GAAP) 1.84% 1.07% .56%
========= ========= ========
Net Charge-Offs to Average Loans Ratio
Reconciliation
Net charge-offs to average loans ratio
excluding fraud-related loans .97% .48% .87%
Charge-offs of fraud-related loans - - 1.20
--------- --------- --------
Net charge-offs to average loans ratio
(GAAP) .97% .48% 2.07%
========= ========= ========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
(in thousands, except per share data)
2007 For the Six Months
------------------- Ended June 30
Third Second -------------------
Quarter Quarter 2008 2007
--------- -------- --------- --------
Special provision for fraud-
related loan losses $ - $ 15,000 $ - $ 15,000
--------- -------- --------- --------
Income tax effect of special
provision - 5,835 - 5,835
--------- -------- --------- --------
After-tax effect of
special provision $ - $ 9,165 $ - $ 9,165
========= ======== ========= ========
Net Income Reconciliation
Operating net income $ 22,536 $ 21,076 $ 23,171 $ 41,421
After-tax effect of special
provision and merger-related
charges - (9,165) - (9,165)
--------- -------- --------- --------
Net income (GAAP) $ 22,536 $ 11,911 $ 23,171 $ 32,256
========= ======== ========= ========
Basic Earnings Per Share
Reconciliation
Basic operating earnings per
share $ .47 $ .47 $ .49 $ .92
Per share effect of special
provision and merger-related
charges - (.21) - (.21)
--------- -------- --------- --------
Basic earnings per share
(GAAP) $ .47 $ .26 $ .49 $ .71
========= ======== ========= ========
Diluted Earnings Per Share
Reconciliation
Diluted operating earnings per
share $ .46 $ .46 $ .49 $ .90
Per share effect of special
provision and merger-related
charges - (.20) - (.20)
--------- -------- --------- --------
Diluted earnings per share
(GAAP) $ .46 $ .26 $ .49 $ .70
========= ======== ========= ========
Provision for Loan Losses
Reconciliation
Operating provision for loan
losses $ 3,700 $ 3,700 $ 23,000 $ 7,400
Special provision for fraud-
related loan losses - 15,000 - 15,000
--------- -------- --------- --------
Provision for loan losses
(GAAP) $ 3,700 $ 18,700 $ 23,000 $ 22,400
========= ======== ========= ========
Nonperforming Assets
Reconciliation
Nonperforming assets excluding
fraud-related assets $ 39,761 $ 19,968 $ 148,218 $ 19,968
Fraud-related loans and OREO
included in nonperforming
assets 23,576 23,633 3,945 23,633
--------- -------- --------- --------
Nonperforming assets
(GAAP) $ 63,337 $ 43,601 $ 152,163 $ 43,601
========= ======== ========= ========
Allowance for Loan Losses
Reconciliation
Allowance for loan losses
excluding special
fraud-related allowance $ 75,935 $ 77,471 $ 91,035 $ 77,471
Fraud-related allowance for
loan losses 15,000 15,000 - 15,000
--------- -------- --------- --------
Allowance for loan losses
(GAAP) $ 90,935 $ 92,471 $ 91,035 $ 92,471
========= ======== ========= ========
Net Charge-Offs Reconciliation
Net charge-offs excluding
Charge-off of fraud-related
loans $ 5,236 $ 2,124 $ 21,388 $ 3,586
Fraud-related loans charged off - - - -
--------- -------- --------- --------
Net charge-offs (GAAP) $ 5,236 $ 2,124 $ 21,388 $ 3,586
========= ======== ========= ========
Allowance for Loan Losses to
Loans Ratio Reconciliation
Allowance for loan losses to
loans ratio excluding
fraud-related allowance 1.28% 1.29% 1.53% 1.29%
Portion of allowance assigned
to fraud-related loans .25 .25 - .25
--------- -------- --------- --------
Allowance for loan losses
to loans ratio (GAAP) 1.53% 1.54% 1.53% 1.54%
========= ======== ========= ========
Nonperforming Assets to Total
Assets Ratio Reconciliation
Nonperforming assets to total
assets ratio excluding
fraud-related assets .49% .25% 1.79% .25%
Fraud-related nonperforming
assets .28 .29 .05 .29
--------- -------- --------- --------
Nonperforming assets to
total assets ratio (GAAP) .77% .54% 1.84% .54%
========= ======== ========= ========
Net Charge-Offs to Average
Loans Ratio Reconciliation
Net charge-offs to average
loans ratio excluding
fraud-related loans .35% .15% .97% .13%
Charge-offs of fraud-related
loans - - - -
--------- -------- --------- --------
Net charge-offs to average
loans ratio (GAAP) .35% .15% .97% .13%
========= ======== ========= ========
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
(in thousands, except per 2008 2007 2008 2007
share data) ---------- --------- ---------- ---------
Interest revenue:
Loans, including fees $ 97,051 $ 119,799 $ 206,317 $ 233,872
Investment securities:
Taxable 18,879 15,476 37,507 29,444
Tax exempt 398 438 792 885
Federal funds sold and
deposits in banks 50 80 272 138
---------- --------- ---------- ---------
Total interest revenue 116,378 135,793 244,888 264,339
---------- --------- ---------- ---------
Interest expense:
Deposits:
NOW 7,216 11,470 15,803 22,097
Money market 2,310 3,540 5,223 6,080
Savings 180 374 407 683
Time 38,828 41,979 77,712 83,604
---------- --------- ---------- ---------
Total deposit interest
expense 48,534 57,363 99,145 112,464
Federal funds purchased,
repurchase agreements, &
other short-term borrowings 1,820 3,671 6,138 5,488
Federal Home Loan Bank
advances 2,818 5,035 8,563 9,836
Long-term debt 2,059 2,201 4,139 4,405
---------- --------- ---------- ---------
Total interest expense 55,231 68,270 117,985 132,193
---------- --------- ---------- ---------
Net interest revenue 61,147 67,523 126,903 132,146
Provision for loan losses 15,500 18,700 23,000 22,400
---------- --------- ---------- ---------
Net interest revenue after
provision for loan losses 45,647 48,823 103,903 109,746
---------- --------- ---------- ---------
Fee revenue:
Service charges and fees 7,957 7,975 15,770 15,228
Mortgage loan and other
related fees 2,202 2,476 4,165 4,699
Consulting fees 2,252 2,241 4,059 3,988
Brokerage fees 814 1,192 1,907 2,136
Securities gains, net 357 1,386 357 1,593
Losses on prepayment of
borrowings - (1,164) - (1,164)
Other 1,523 2,448 3,044 4,456
---------- --------- ---------- ---------
Total fee revenue 15,105 16,554 29,302 30,936
---------- --------- ---------- ---------
Total revenue 60,752 65,377 133,205 140,682
---------- --------- ---------- ---------
Operating expenses:
Salaries and employee benefits 28,753 30,022 57,507 58,339
Communications and equipment 3,852 3,845 7,684 7,657
Occupancy 3,704 3,316 7,420 6,507
Advertising and public
relations 2,009 2,098 3,360 4,114
Postage, printing and supplies 1,448 1,680 3,040 3,340
Professional fees 1,679 2,010 3,600 3,489
Amortization of intangibles 745 633 1,512 1,197
Other 7,571 4,098 13,167 7,900
---------- --------- ---------- ---------
Total operating expenses 49,761 47,702 97,290 92,543
---------- --------- ---------- ---------
Income before income taxes 10,991 17,675 35,915 48,139
Income taxes 3,898 5,764 12,744 16,883
---------- --------- ---------- ---------
Net income $ 7,093 $ 11,911 $ 23,171 $ 31,256
========== ========= ========== =========
Net income available to
common shareholders $ 7,089 $ 11,906 $ 23,163 $ 31,246
========== ========= ========== =========
Earnings per common share:
Basic $ .15 $ .26 $ .49 $ .71
Diluted .15 .26 .49 .70
Dividends per common share .09 .09 .18 .18
Weighted average common shares
outstanding:
Basic 47,060 44,949 47,013 43,980
Diluted 47,249 45,761 47,260 44,842
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
June 30, December 31, June 30,
(in thousands, except share 2008 2007 2007
and per share data) ------------ ------------ ------------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 176,240 $ 157,549 $ 171,095
Interest-bearing deposits in
banks 12,455 62,074 23,146
------------ ------------ ------------
Cash and cash equivalents 188,695 219,623 194,241
Securities available for sale 1,430,588 1,356,846 1,213,659
Mortgage loans held for sale 27,094 28,004 30,615
Loans, net of unearned income 5,933,141 5,929,263 5,999,093
Less allowance for loan
losses 91,035 89,423 92,471
------------ ------------ ------------
Loans, net 5,842,106 5,839,840 5,906,622
Premises and equipment, net 181,395 180,088 171,327
Accrued interest receivable 50,399 62,828 64,538
Goodwill and other intangible
assets 323,296 325,305 326,467
Other assets 220,478 194,768 180,198
------------ ------------ ------------
Total assets $ 8,264,051 $ 8,207,302 $ 8,087,667
============ ============ ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $ 696,575 $ 700,941 $ 773,435
NOW 1,541,609 1,474,818 1,447,789
Money market 418,935 452,917 504,730
Savings 187,088 186,392 207,468
Time:
Less than $100,000 1,744,217 1,573,604 1,651,486
Greater than $100,000 1,573,078 1,364,763 1,428,841
Brokered 534,954 322,516 347,520
------------ ------------ ------------
Total deposits 6,696,456 6,075,951 6,361,269
Federal funds purchased,
repurchase agreements, and
other short-term borrowings 288,650 638,462 238,429
Federal Home Loan Bank
advances 285,807 519,782 499,060
Long-term debt 107,996 107,996 113,151
Accrued expenses and other
liabilities 47,252 33,209 47,027
------------ ------------ ------------
Total liabilities 7,426,161 7,375,400 7,258,936
------------ ------------ ------------
Shareholders' equity:
Preferred stock, $1 par
value; $10 stated value;
10,000,000 shares
authorized; 25,800, 25,800
and 32,200 shares issued
and outstanding 258 258 322
Common stock, $1 par value;
100,000,000 shares
authorized; 48,809,301,
48,809,301 and 48,781,351
shares issued 48,809 48,809 48,781
Common stock issuable;
105,579, 73,250 and 60,761
shares 2,696 2,100 1,816
Capital surplus 462,939 462,881 461,226
Retained earnings 362,089 347,391 329,229
Treasury stock; 1,713,310 and
1,905,921 shares, at cost (39,222) (43,798) -
Accumulated other
comprehensive income (loss) 321 14,261 (12,643)
------------ ------------ ------------
Total shareholders'
equity 837,890 831,902 828,731
------------ ------------ ------------
Total liabilities and
shareholders' equity $ 8,264,051 $ 8,207,302 $ 8,087,667
============ ============ ============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2008
----------- ------------ ------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -------------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,933,143 $ 97,080 6.58%
Taxable securities (3) 1,471,958 18,879 5.13
Tax-exempt securities (1)(3) 35,282 655 7.43
Federal funds sold and other
interest-earning assets 37,635 370 3.93
----------- ------------
Total interest-earning assets 7,478,018 116,984 6.29
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (93,776)
Cash and due from banks 144,589
Premises and equipment 181,454
Other assets (3) 585,463
-----------
Total assets $ 8,295,748
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,505,280 $ 7,216 1.93
Money market 422,419 2,310 2.20
Savings 186,826 180 .39
Time less than $100,000 1,642,677 17,285 4.23
Time greater than $100,000 1,484,032 16,135 4.37
Brokered 535,898 5,408 4.06
----------- ------------
Total interest-bearing
deposits 5,777,132 48,534 3.38
----------- ------------
Federal funds purchased and
other borrowings 383,378 1,820 1.91
Federal Home Loan Bank advances 412,268 2,818 2.75
Long-term debt 107,996 2,059 7.67
----------- ------------
Total borrowed funds 903,642 6,697 2.98
----------- ------------
Total interest-bearing
liabilities 6,680,774 55,231 3.33
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 684,229
Other liabilities 74,018
-----------
Total liabilities 7,439,021
Shareholders' equity 856,727
-----------
Total liabilities and
shareholders' equity $ 8,295,748
===========
Net interest revenue $ 61,753
============
Net interest-rate spread 2.96%
============
Net interest margin (4) 3.32%
============
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rate used was 39%, reflecting the statutory federal income tax rate
and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $13.0 million in 2008 and pretax unrealized losses
of $7.8 million in 2007 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 Three Months Ended June 30,
2007
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,619,950 $ 119,569 8.53%
Taxable securities (3) 1,200,268 15,476 5.16
Tax-exempt securities (1)(3) 42,180 721 6.83
Federal funds sold and other
interest-earning assets 52,736 471 3.57
----------- ------------
Total interest-earning assets 6,915,134 136,237 7.90
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (73,323)
Cash and due from banks 130,046
Premises and equipment 158,290
Other assets (3) 389,245
-----------
Total assets $ 7,519,392
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,379,423 $ 11,470 3.34
Money market 354,815 3,540 4.00
Savings 186,490 374 .80
Time less than $100,000 1,627,708 19,978 4.92
Time greater than $100,000 1,372,410 17,892 5.23
Brokered 332,857 4,109 4.95
----------- ------------
Total interest-bearing
deposits 5,253,703 57,363 4.38
----------- ------------
Federal funds purchased and
other borrowings 275,319 3,671 5.35
Federal Home Loan Bank advances 419,287 5,035 4.82
Long-term debt 113,270 2,201 7.79
----------- ------------
Total borrowed funds 807,876 10,907 5.42
----------- ------------
Total interest-bearing
liabilities 6,061,579 68,270 4.52
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 691,930
Other liabilities 93,535
-----------
Total liabilities 6,847,044
Shareholders' equity 672,348
-----------
Total liabilities and
shareholders' equity $ 7,519,392
===========
Net interest revenue $ 67,967
============
Net interest-rate spread 3.38%
===========
Net interest margin (4) 3.94%
===========
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rate used was 39%, reflecting the statutory federal income tax rate
and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $13.0 million in 2008 and pretax unrealized
losses of $7.8 million in 2007 are included in other assets for
purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
2008
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,945,720 $ 206,332 6.98%
Taxable securities (3) 1,460,090 37,507 5.14
Tax-exempt securities (1)(3) 36,287 1,303 7.18
Federal funds sold and other
interest-earning assets 42,652 883 4.14
----------- ------------
Total interest-earning assets 7,484,749 246,025 6.60
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (92,901)
Cash and due from banks 149,648
Premises and equipment 181,405
Other assets (3) 577,785
-----------
Total assets $ 8,300,686
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,483,699 $ 15,803 2.14
Money market 430,734 5,223 2.44
Savings 185,819 407 .44
Time less than $100,000 1,597,995 35,508 4.47
Time greater than $100,000 1,424,670 32,505 4.59
Brokered 455,150 9,699 4.29
----------- ------------
Total interest-bearing
deposits 5,578,067 99,145 3.57
----------- ------------
Federal funds purchased and
other borrowings 467,596 6,138 2.64
Federal Home Loan Bank advances 536,883 8,563 3.21
Long-term debt 107,995 4,139 7.71
----------- ------------
Total borrowed funds 1,112,474 18,840 3.41
----------- ------------
Total interest-bearing
liabilities 6,690,541 117,985 3.55
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 678,150
Other liabilities 75,802
-----------
Total liabilities 7,444,493
Shareholders' equity 856,193
-----------
Total liabilities and
shareholders' equity $ 8,300,686
===========
Net interest revenue $ 128,040
============
Net interest-rate spread 3.05%
===========
Net interest margin (4) 3.43%
===========
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rate used was 39%, reflecting the statutory federal income tax rate
and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $14.5 million in 2008 and pretax unrealized
losses of $8.9 million in 2007 are included in other assets for
purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
2007
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,512,005 $ 233,437 8.54%
Taxable securities (3) 1,155,308 29,444 5.10
Tax-exempt securities (1)(3) 42,767 1,456 6.81
Federal funds sold and other
interest-earning assets 47,879 928 3.88
----------- ------------
Total interest-earning assets 6,757,959 265,265 7.91
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (70,769)
Cash and due from banks 125,367
Premises and equipment 152,593
Other assets (3) 342,081
-----------
Total assets $ 7,307,231
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,351,277 $ 22,097 3.30
Money market 308,541 6,080 3.97
Savings 180,913 683 .76
Time less than $100,000 1,634,569 39,774 4.91
Time greater than $100,000 1,378,870 35,808 5.24
Brokered 333,800 8,022 4.85
----------- ------------
Total interest-bearing
deposits 5,187,970 112,464 4.37
----------- ------------
Federal funds purchased and
other borrowings 207,663 5,488 5.33
Federal Home Loan Bank advances 407,583 9,836 4.87
Long-term debt 113,251 4,405 7.84
----------- ------------
Total borrowed funds 728,497 19,729 5.46
----------- ------------
Total interest-bearing
liabilities 5,916,467 132,193 4.51
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 667,560
Other liabilities 74,846
-----------
Total liabilities 6,658,873
Shareholders' equity 648,358
-----------
Total liabilities and
shareholders' equity $ 7,307,231
===========
Net interest revenue $ 133,072
============
Net interest-rate spread 3.40%
===========
Net interest margin (4) 3.96%
===========
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rate used was 39%, reflecting the statutory federal income tax rate
and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $14.5 million in 2008 and pretax unrealized
losses of $8.9 million in 2007 are included in other assets for
purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
For more information: Rex S. Schuette Chief Financial Officer (706) 781-2266 Email Contact
SOURCE: United Community Banks, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=7953CD70A33BB9E2
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