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United Community Banks, Inc. Reports Net Operating Loss for Third Quarter 2009
United Community Banks, Inc. Reports Net Operating Loss for Third Quarter 2009
Oct 23, 2009
BLAIRSVILLE, GA, Oct 23, 2009 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
-- Capital significantly strengthened by $222.5 million public common
offering
-- Provision for loan losses of $95.0 million exceeded charge-offs by
$4.5 million
-- Allowance-to-loans ratio of 2.80 percent, up from 2.64 percent last
quarter
-- Margin improvement of 11 basis points this quarter to 3.39 percent, up
69 basis points year-to-date
-- Non-cash goodwill impairment charge of $25.0 million, or $.50 per
diluted share
United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $43.7 million, or 93 cents per diluted share, for the third quarter of 2009. These results reflect elevated credit costs, including a $95 million provision for loan losses. Net operating loss does not include a $25 million non-cash charge for impairment of goodwill. Including this non-recurring charge, the net loss for the quarter was $68.7 million, or $1.43 per diluted share.
Net operating loss for the nine months ended September 30, 2009 was $98.8 million, or $2.17 per diluted share, and did not reflect $95 million of non-cash charges for goodwill impairment in the first and third quarters. Also not included were $2.9 million in severance costs in the first quarter and the $11.4 million gain on the Southern Community Bank acquisition in the second quarter, all of which are considered non-recurring items and therefore excluded from operating earnings. Including these non-recurring items, the net loss for the first nine months of 2009 was $188.5 million, or $4.01 per diluted share.
"We continue our strategy of aggressively disposing of problem credits," stated Jimmy Tallent, president and chief executive officer. "At the same time, we are sharply focused on offensive strategies to drive shareholder value long-term by increasing core earnings through margin expansion, expense reductions and core deposit growth. This has been accomplished each quarter throughout 2009."
Total loans were $5.4 billion at quarter-end, down $150 million from the second quarter and $467 million from the third quarter of 2008, reflecting continued reductions in exposure to the residential construction market and the overall weak business environment. As of September 30, 2009, residential construction loans were $1.2 billion, or 22 percent of total loans, a decrease of $411 million from a year ago and $130 million from the second quarter of 2009. "Partially offsetting the decline in total loans was our growth in Atlanta," stated Tallent. "I am very pleased with our progress in restructuring the Atlanta region, where we have closed $180 million in small business and commercial loans in the first nine months of 2009."
Taxable equivalent net interest revenue of $63.0 million reflected an increase of $2.1 million from last quarter, $4.2 million from a year ago, and an increase of $11.1 million from the fourth quarter of 2008. The taxable equivalent net interest margin was 3.39 percent compared with 3.28 percent for the second quarter of 2009, 3.17 percent for the third quarter of 2008, and 2.70 percent for the fourth quarter of 2008.
"The 11 basis point improvement in our net interest margin this quarter reflects our ongoing efforts to improve loan and deposit pricing," stated Tallent. "We continued to maintain our loan pricing strategy with higher credit spreads while lowering pricing on new and renewed time deposits. During the third quarter, over $400 million of time deposits matured that were part of a 15-month special program completed in the second quarter of 2008. We retained about half of these deposits with a rate reduction of over 225 basis points. We will continue to actively pursue lowering deposit rates to improve our margin while balancing liquidity needs with our goal of maximizing earnings."
"Excluding public funds and the deposits obtained through the acquisition, core transaction deposits increased $71 million this quarter and have grown $200 million year-to-date, or 13 percent on an annualized basis," Tallent said. "This growth reflects the success of our United Express program for customer referrals and cross-selling. Year-to-date we opened 9,776 net new deposit accounts. During the third quarter alone, we have added 17, 785 new services."
The third quarter provision for loan losses was $95.0 million compared with $60.0 million for the second quarter of 2009. Net charge-offs for the third quarter were $90.5 million compared with $58.3 million for the second quarter of 2009. At quarter-end, non-performing assets totaled $415.0 million compared with $392.6 million at June 30, 2009. The ratio of non-performing assets to total assets at the end of the third and second quarters was 4.91 percent and 4.63 percent, respectively. The allowance for loan losses to total loans was 2.80 percent and 2.64 percent, respectively.
"Credit quality continues to be our primary area of focus, particularly in the residential construction portfolio," Tallent said. "While we have seen a rise in all categories of non-performing assets, the inflow is still driven by continued weakness in the housing and construction markets. The good news is that the residential construction problem credits in the Atlanta region are starting to decline on a linked-quarter basis. We have seen some negative migration in the commercial real estate categories, but the amounts are still within reasonable levels in light of current economic conditions. Though we could see more negative migration in commercial loans, we are cautiously optimistic because the portfolio is diversified, cash flow sources are varied, and a large percentage of the loans are owner-occupied."
Operating fee revenue of $15.7 million reflected a $2.6 million increase from last quarter and a year ago. Operating fee revenue excludes the $11.4 million gain on the Southern Community Bank acquisition recorded last quarter. Consulting fees of $2.3 million were up $555,000 from last year due to an increase in demand for assistance with regulatory compliance matters. Mortgage loan fees of $1.8 million were up $422,000 from a year ago due to a high level of refinancing activity. Net securities gains of $1.1 million were up $1.0 million compared to the third quarter of 2008.
Operating expenses for the third quarter of 2009 were $53.6 million, a decrease of $3.4 million from last year. The decrease was primarily due to lower foreclosed property costs of $2.2 million and lower salary and benefit costs of $2.7 million. The decrease in salary and benefit costs were primarily due to the reduction in work force of 174 staff year-to-date and lower bonus incentives, which were offset partially by the 54 staff added last quarter through the acquisition. Additionally, several expense categories benefited this quarter from cost reductions including communications, advertising and printing costs. Partially offsetting the benefit of these lower costs were the rate increase for FDIC insurance premiums of $1.3 million and higher professional and legal fees related to the credit cycle.
The effective tax rate for the third quarter of 2009 was 28 percent, compared to 35 percent for the third quarter of 2008. The lower effective tax rate in the third quarter of 2009 was due to the goodwill impairment charge for which no tax benefit is recognized. Excluding the goodwill impairment charge, the effective tax rate for the third quarter of 2009 was 38 percent. The projected effective tax rate for the balance of 2009 is 38 percent.
At September 30, 2009, the company's regulatory capital ratios were as follows: Tier I Risk-Based Capital of 12.7 percent; Leverage of 9.5 percent; and Total Risk-Based of 15.3 percent. Also, the quarter-end tangible equity-to-assets ratio was 9.6 percent, the tangible common equity-to-assets ratio was 7.4 percent and the tangible common equity to risk weighted assets was 10.3 percent. The third quarter capital ratios reflect the successful common stock offering that closed on September 30, 2009. United issued 44,505,000 shares of common stock at a price of $5.00 per share and the net proceeds increased capital by $210.9 million.
"The additional capital significantly strengthens our balance sheet, allowing us to continue to aggressively deal with problem credits," stated Tallent. "Even more important, it positions us to take advantage of once-in-a-lifetime opportunities to grow our business through organic growth, FDIC assisted transactions and customer dislocation within our markets. All of our strategies support our goal of building long-term shareholder value. While there is a lot of work yet to be done, we have the strongest sense of urgency to return United to the higher levels of profitability that it has achieved for decades."
Conference Call
United Community Banks will hold a conference call today, Friday, October 23, 2009, 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 (888) 211-7262 and use the password 'UCBI.' The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the company's website at www.ucbi.com. The Investor Presentation for Third Quarter 2009 can be accessed on the website by selecting 'Presentations' within the Investor Relations section.
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 $8.4 billion and operates 27 community banks with 109 banking offices 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 3 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
2009
---------------------------------------
(in thousands, except per share Third Second First
data; taxable equivalent) Quarter Quarter Quarter
----------- ----------- -----------
INCOME SUMMARY
Interest revenue $ 101,181 $ 102,737 $ 103,562
Interest expense 38,177 41,855 46,150
----------- ----------- -----------
Net interest revenue 63,004 60,882 57,412
Provision for loan losses 95,000 60,000 65,000
Operating fee revenue (1) 15,671 13,050 12,846
----------- ----------- -----------
Total revenue (16,325) 13,932 5,258
Operating expenses (2) 53,606 55,348 52,569
----------- ----------- -----------
Operating loss before taxes (69,931) (41,416) (47,311)
Income tax benefit (26,213) (18,353) (15,335)
----------- ----------- -----------
Net operating loss (1)(2) (43,718) (23,063) (31,976)
Gain from acquisitions, net of
tax expense - 7,062 -
Noncash goodwill impairment
charge (25,000) - (70,000)
Severance costs, net of tax
benefit - - (1,797)
----------- ----------- -----------
Net loss (68,718) (16,001) (103,773)
Preferred dividends and discount
accretion 2,562 2,559 2,554
----------- ----------- -----------
Net loss available
to common shareholders $ (71,280) $ (18,560) $ (106,327)
=========== =========== ===========
PERFORMANCE MEASURES
Per common share:
Diluted operating loss (1)(2) $ (.93) $ (.53) $ (.71)
Diluted loss (1.43) (.38) (2.20)
Cash dividends declared - - -
Stock dividends declared (6) 1 for 130 1 for 130 1 for 130
Book value 8.85 13.87 14.70
Tangible book value (4) 6.50 8.85 9.65
Key performance ratios:
Return on equity (3)(5) (45.52)% (11.42)% (58.28)%
Return on assets (5) (3.32) (.78) (5.03)
Net interest margin (5) 3.39 3.28 3.08
Operating efficiency ratio
(1)(2)(4) 69.15 74.15 75.15
Equity to assets 10.27 10.71 11.56
Tangible equity to assets (4) 7.55 7.96 8.24
Tangible common equity to
assets (4) 5.36 5.77 6.09
Tangible common equity to
risk-weighted assets (4) 10.33 7.49 8.03
ASSET QUALITY *
Non-performing loans (NPLs) $ 304,381 $ 287,848 $ 259,155
Foreclosed properties 110,610 104,754 75,383
----------- ----------- -----------
Total non-performing assets
(NPAs) 414,991 392,602 334,538
Allowance for loan losses 150,187 145,678 143,990
Net charge-offs 90,491 58,312 43,281
Allowance for loan losses to
loans 2.80 % 2.64 % 2.56 %
Net charge-offs to average
loans (5) 6.57 4.18 3.09
NPAs to loans and foreclosed
properties 7.58 6.99 5.86
NPAs to total assets 4.91 4.63 4.09
AVERAGE BALANCES
Loans $ 5,565,498 $ 5,597,259 $ 5,675,054
Investment securities 1,615,499 1,771,482 1,712,654
Earning assets 7,400,539 7,442,178 7,530,230
Total assets 8,208,199 8,212,140 8,372,281
Deposits 6,689,948 6,544,537 6,780,531
Shareholders' equity 843,130 879,210 967,505
Common shares - basic 49,771 48,794 48,324
Common shares - diluted 49,771 48,794 48,324
AT PERIOD END
Loans $ 5,362,689 $ 5,513,087 $ 5,632,705
Investment securities 1,532,514 1,816,787 1,719,033
Total assets 8,443,617 8,477,355 8,171,663
Deposits 6,821,306 6,848,760 6,616,488
Shareholders' equity 1,006,638 855,272 888,853
Common shares outstanding 93,901 48,933 48,487
(1) Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009. (2) Excludes the
non-recurring goodwill impairment charges of $25 million and $70 million in
the third and first quarters of 2009, respectively, and severance costs of
$2.9 million, net of income tax benefit of $1.1 million in the first
quarter of 2009. (3) Net income available to common shareholders, which
excludes preferred stock dividends, divided by average realized common
equity, which excludes accumulated other comprehensive income (loss).
(4) Excludes effect of acquisition related intangibles and associated
amortization. (5) Annualized. (6) Number of new shares issued for
shares currently held. NM - Not meaningful.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2008 Third
------------------------- Quarter
(in thousands, except per share Fourth Third 2009-2008
data; taxable equivalent) Quarter Quarter Change
----------- ----------- ---------
INCOME SUMMARY
Interest revenue $ 108,434 $ 112,510
Interest expense 56,561 53,719
----------- -----------
Net interest revenue 51,873 58,791 7%
Provision for loan losses 85,000 76,000
Operating fee revenue (1) 10,718 13,121 19
----------- -----------
Total revenue (22,409) (4,088) 299
Operating expenses (2) 52,439 56,970 (6)
----------- -----------
Operating loss before taxes (74,848) (61,058) 15
Income tax benefit (28,101) (21,184)
----------- -----------
Net operating loss (1)(2) (46,747) (39,874) 10
Gain from acquisitions, net of tax
expense - -
Noncash goodwill impairment charge - -
Severance costs, net of tax benefit - -
----------- -----------
Net loss (46,747) (39,874) 72
Preferred dividends and discount
accretion 712 4
----------- -----------
Net loss available
to common shareholders $ (47,459) $ (39,878)
=========== ===========
PERFORMANCE MEASURES
Per common share:
Diluted operating loss (1)(2) $ (.99) $ (.84) 11
Diluted loss (.99) (.84) 70
Cash dividends declared - -
Stock dividends declared (6) 1 for 130 1 for 130
Book value 16.95 17.12 (48)
Tangible book value (4) 10.39 10.48 (38)
Key performance ratios:
Return on equity (3)(5) (23.83)% (19.07)%
Return on assets (5) (2.19) (1.94)
Net interest margin (5) 2.70 3.17
Operating efficiency
ratio (1)(2)(4) 81.34 79.35
Equity to assets 10.04 10.26
Tangible equity to assets (4) 6.56 6.64
Tangible common equity to assets (4) 6.21 6.64
Tangible common equity to
risk-weighted assets (4) 8.34 8.26
ASSET QUALITY *
Non-performing loans (NPLs) $ 190,723 $ 139,266
Foreclosed properties 59,768 38,438
----------- -----------
Total non-performing assets
(NPAs) 250,491 177,704
Allowance for loan losses 122,271 111,299
Net charge-offs 74,028 55,736
Allowance for loan losses to loans 2.14% 1.91%
Net charge-offs to average loans (5) 5.09 3.77
NPAs to loans and foreclosed
properties 4.35 3.03
NPAs to total assets 2.92 2.19
AVERAGE BALANCES
Loans $ 5,784,139 $ 5,889,168 (5)
Investment securities 1,508,808 1,454,740 11
Earning assets 7,662,536 7,384,287 -
Total assets 8,487,017 8,164,694 1
Deposits 6,982,229 6,597,339 1
Shareholders' equity 851,956 837,487 1
Common shares - basic 47,844 47,417
Common shares - diluted 47,844 47,417
AT PERIOD END
Loans $ 5,704,861 $ 5,829,937 (8)
Investment securities 1,617,187 1,400,827 9
Total assets 8,591,933 8,113,961 4
Deposits 7,003,624 6,689,335 2
Shareholders' equity 989,382 816,880 23
Common shares outstanding 48,009 47,596
(1) Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009. (2) Excludes the
non-recurring goodwill impairment charges of $25 million and $70 million in
the third and first quarters of 2009, respectively, and severance costs of
$2.9 million, net of income tax benefit of $1.1 million in the first
quarter of 2009. (3) Net income available to common shareholders, which
excludes preferred stock dividends, divided by average realized common
equity, which excludes accumulated other comprehensive income (loss).
(4) Excludes effect of acquisition related intangibles and associated
amortization. (5) Annualized. (6) Number of new shares issued for
shares currently held. NM - Not meaningful.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Nine
Months Ended YTD
(in thousands, except per share ------------------------- 2009-2008
data; taxable equivalent) 2009 2008 Change
----------- ----------- --------
INCOME SUMMARY
Interest revenue $ 307,480 $ 358,535
Interest expense 126,182 171,704
----------- -----------
Net interest revenue 181,298 186,831 (3)%
Provision for loan losses 220,000 99,000
Operating fee revenue (1) 41,567 42,423 (2)
----------- -----------
Total revenue 2,865 130,254 (98)
Operating expenses (2) 161,523 154,260 5
----------- -----------
Operating loss before taxes (158,658) (24,006) 561
Income tax benefit (59,901) (7,303)
----------- -----------
Net operating loss (1)(2) (98,757) (16,703) 491
Gain from acquisitions, net of tax
expense 7,062 -
Noncash goodwill impairment charge (95,000) -
Severance costs, net of tax benefit (1,797) -
----------- -----------
Net loss (188,492) (16,703) 1,028
Preferred dividends and discount
accretion 7,675 12
----------- -----------
Net loss available
to common shareholders $ (196,167) $ (16,715)
=========== ===========
PERFORMANCE MEASURES
Per common share:
Diluted operating loss (1)(2) $ (2.17) $ (.35) 520
Diluted loss (4.01) (.35) 1,046
Cash dividends declared - .18
Stock dividends declared (6) 3 for 130 1 for 130
Book value 8.85 17.12 (48)
Tangible book value (4) 6.50 10.48 (38)
Key performance ratios:
Return on equity (3)(5) (39.11)% (2.69)%
Return on assets (5) (3.05) (.27)
Net interest margin (5) 3.25 3.35
Operating efficiency
ratio (1)(2)(4) 72.72 67.43
Equity to assets 10.84 10.29
Tangible equity to assets (4) 7.92 6.71
Tangible common equity to assets (4) 5.74 6.70
Tangible common equity to
risk-weighted assets (4) 10.33 8.26
ASSET QUALITY *
Non-performing loans (NPLs) $ 304,381 $ 139,266
Foreclosed properties 110,610 38,438
----------- -----------
Total non-performing assets
(NPAs) 414,991 177,704
Allowance for loan losses 150,187 111,299
Net charge-offs 192,084 77,124
Allowance for loan losses to loans 2.80% 1.91%
Net charge-offs to average loans (5) 4.60 1.74
NPAs to loans and foreclosed
properties 7.58 3.03
NPAs to total assets 4.91 2.19
AVERAGE BALANCES
Loans $ 5,612,202 $ 5,926,731 (5)
Investment securities 1,699,522 1,482,397 15
Earning assets 7,457,173 7,451,017 -
Total assets 8,263,605 8,262,853 -
Deposits 6,671,340 6,370,753 5
Shareholders' equity 896,159 849,912 5
Common shares - basic 48,968 47,210
Common shares - diluted 48,968 47,210
AT PERIOD END
Loans $ 5,362,689 $ 5,829,937 (8)
Investment securities 1,532,514 1,400,827 9
Total assets 8,443,617 8,113,961 4
Deposits 6,821,306 6,689,335 2
Shareholders' equity 1,006,638 816,880 23
Common shares outstanding 93,901 47,596
(1) Excludes the gain from acquisition of $11.4 million, net of income tax
expense of $4.3 million in the second quarter of 2009. (2) Excludes the
non-recurring goodwill impairment charges of $25 million and $70 million in
the third and first quarters of 2009, respectively, and severance costs of
$2.9 million, net of income tax benefit of $1.1 million in the first
quarter of 2009. (3) Net income available to common shareholders, which
excludes preferred stock dividends, divided by average realized common
equity, which excludes accumulated other comprehensive income (loss).
(4) Excludes effect of acquisition related intangibles and associated
amortization. (5) Annualized. (6) Number of new shares issued for
shares currently held. NM - Not meaningful.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
(in thousands, 2009 2008
except per share -------------------------------- --------------------
data; taxable Third Second First Fourth Third
equivalent) Quarter Quarter Quarter Quarter Quarter
--------- --------- ---------- --------- ---------
Interest revenue
reconciliation
Interest revenue -
taxable equivalent $ 101,181 $ 102,737 $ 103,562 $ 108,434 $ 112,510
Taxable equivalent
adjustment (580) (463) (488) (553) (571)
--------- --------- ---------- --------- ---------
Interest
revenue (GAAP) $ 100,601 $ 102,274 $ 103,074 $ 107,881 $ 111,939
========= ========= ========== ========= =========
Net interest revenue
reconciliation
Net interest
revenue - taxable
equivalent $ 63,004 $ 60,882 $ 57,412 $ 51,873 $ 58,791
Taxable equivalent
adjustment (580) (463) (488) (553) (571)
--------- --------- ---------- --------- ---------
Net interest
revenue (GAAP) $ 62,424 $ 60,419 $ 56,924 $ 51,320 $ 58,220
========= ========= ========== ========= =========
Fee revenue
reconciliation
Operating fee
revenue $ 15,671 $ 13,050 $ 12,846 $ 10,718 $ 13,121
Gain from
acquisition - 11,390 - - -
--------- --------- ---------- --------- ---------
Fee revenue
(GAAP) $ 15,671 $ 24,440 $ 12,846 $ 10,718 $ 13,121
========= ========= ========== ========= =========
Total revenue
reconciliation
Total operating
revenue $ (16,325) $ 13,932 $ 5,258 $ (22,409) $ (4,088)
Taxable equivalent
adjustment (580) (463) (488) (553) (571)
Gain from
acquisition - 11,390 - - -
--------- --------- ---------- --------- ---------
Total revenue
(GAAP) $ (16,905) $ 24,859 $ 4,770 $ (22,962) $ (4,659)
========= ========= ========== ========= =========
Expense
reconciliation
Operating expense $ 53,606 $ 55,348 $ 52,569 $ 52,439 $ 56,970
Noncash goodwill
impairment charge 25,000 - 70,000 - -
Severance costs - - 2,898 - -
--------- --------- ---------- --------- ---------
Operating
expense (GAAP) $ 78,606 $ 55,348 $ 125,467 $ 52,439 $ 56,970
========= ========= ========== ========= =========
(Loss) income before
taxes reconciliation
Operating (loss)
income before
taxes $ (69,931) $ (41,416) $ (47,311) $ (74,848) $ (61,058)
Taxable equivalent
adjustment (580) (463) (488) (553) (571)
Gain from
acquisition - 11,390 - - -
Noncash goodwill
impairment charge (25,000) - (70,000) - -
Severance costs - - (2,898) - -
--------- --------- ---------- --------- ---------
(Loss) income
before taxes
(GAAP) $ (95,511) $ (30,489) $ (120,697) $ (75,401) $ (61,629)
========= ========= ========== ========= =========
Income tax (benefit)
expense reconciliation
Operating income
tax (benefit)
expense $ (26,213) $ (18,353) $ (15,335) $ (28,101) $ (21,184)
Taxable equivalent
adjustment (580) (463) (488) (553) (571)
Gain from
acquisition, tax
expense - 4,328 - - -
Severance costs,
tax benefit - - (1,101) - -
--------- --------- ---------- --------- ---------
Income tax
(benefit)
expense (GAAP) $ (26,793) $ (14,488) $ (16,924) $ (28,654) $ (21,755)
========= ========= ========== ========= =========
(Loss) earnings per
common share
reconciliation
Operating (loss)
earnings per
common share $ (0.93) $ (0.53) $ (0.71) $ (0.99) $ (0.84)
Gain from
acquisition - 0.15 - - -
Noncash goodwill
impairment charge (0.50) - (1.45) - -
Severance costs - - (0.04) - -
--------- --------- ---------- --------- ---------
(Loss) earnings
per common
share (GAAP) $ (1.43) $ (0.38) $ (2.20) $ (0.99) $ (0.84)
========= ========= ========== ========= =========
Book value
reconciliation
Tangible book value $ 6.50 $ 8.85 $ 9.65 $ 10.39 $ 10.48
Effect of goodwill
and other
intangibles 2.35 5.02 5.05 6.56 6.64
--------- --------- ---------- --------- ---------
Book value
(GAAP) $ 8.85 $ 13.87 $ 14.70 $ 16.95 $ 17.12
========= ========= ========== ========= =========
Efficiency ratio
reconciliation
Operating
efficiency ratio 69.15% 74.15% 75.15% 81.34% 79.35%
Gain from
acquisition - (9.82) - - -
Noncash goodwill
impairment charge 32.24 - 100.06 - -
Severance costs - - 4.14 - -
--------- --------- ---------- --------- ---------
Efficiency
ratio (GAAP) 101.39% 64.33% 179.35% 81.34% 79.35%
========= ========= ========== ========= =========
Average equity to
assets
reconciliation
Tangible common
equity to assets 5.36% 5.77% 6.09% 6.21% 6.64%
Effect of preferred
equity 2.19 2.19 2.15 .35 -
--------- --------- ---------- --------- ---------
Tangible equity
to assets 7.55 7.96 8.24 6.56 6.64
Effect of goodwill
and other
intangibles 2.72 2.75 3.32 3.48 3.62
--------- --------- ---------- --------- ---------
Equity to
assets (GAAP) 10.27% 10.71% 11.56% 10.04% 10.26%
========= ========= ========== ========= =========
Actual tangible
common equity to
risk-weighted
assets reconciliation
Tangible common
equity to
risk-weighted
assets 10.33% 7.49% 8.03% 8.34% 8.26%
Effect of other
comprehensive
income (.87) (.72) (1.00) (.91) (.28)
Effect of deferred
tax limitation (.56) (.22) - - -
Effect of trust
preferred .89 .90 .89 .88 .68
Effect of preferred
equity 2.94 2.99 2.96 2.90 -
--------- --------- ---------- --------- ---------
Tier I capital
ratio
(Regulatory) 12.73% 10.44% 10.88% 11.21% 8.66%
========= ========= ========== ========= =========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
For the Nine
(in thousands, except per share Months Ended
data; taxable equivalent) ------------------------
2009 2008
----------- -----------
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 307,480 $ 358,535
Taxable equivalent adjustment (1,531) (1,708)
----------- -----------
Interest revenue (GAAP) $ 305,949 $ 356,827
=========== ===========
Net interest revenue reconciliation
Net interest revenue - taxable equivalent $ 181,298 $ 186,831
Taxable equivalent adjustment (1,531) (1,708)
----------- -----------
Net interest revenue (GAAP) $ 179,767 $ 185,123
=========== ===========
Fee revenue reconciliation
Operating fee revenue $ 41,567 $ 42,423
Gain from acquisition 11,390 -
----------- -----------
Fee revenue (GAAP) $ 52,957 $ 42,423
=========== ===========
Total revenue reconciliation
Total operating revenue $ 2,865 $ 130,254
Taxable equivalent adjustment (1,531) (1,708)
Gain from acquisition 11,390 -
----------- -----------
Total revenue (GAAP) $ 12,724 $ 128,546
=========== ===========
Expense reconciliation
Operating expense $ 161,523 $ 154,260
Noncash goodwill impairment charge 95,000 -
Severance costs 2,898 -
----------- -----------
Operating expense (GAAP) $ 259,421 $ 154,260
=========== ===========
(Loss) income before taxes reconciliation
Operating (loss) income before taxes $ (158,658) $ (24,006)
Taxable equivalent adjustment (1,531) (1,708)
Gain from acquisition 11,390 -
Noncash goodwill impairment charge (95,000) -
Severance costs (2,898) -
----------- -----------
(Loss) income before taxes (GAAP) $ (246,697) $ (25,714)
=========== ===========
Income tax (benefit) expense reconciliation
Operating income tax (benefit) expense $ (59,901) $ (7,303)
Taxable equivalent adjustment (1,531) (1,708)
Gain from acquisition, tax expense 4,328 -
Severance costs, tax benefit (1,101) -
----------- -----------
Income tax (benefit) expense (GAAP) $ (58,205) $ (9,011)
=========== ===========
(Loss) earnings per common share reconciliation
Operating (loss) earnings per common share $ (2.17) $ (0.35)
Gain from acquisition 0.15 -
Noncash goodwill impairment charge (1.95) -
Severance costs (0.04) -
----------- -----------
(Loss) earnings per common share (GAAP) $ (4.01) $ (0.35)
=========== ===========
Book value reconciliation
Tangible book value $ 6.50 $ 10.48
Effect of goodwill and other intangibles 2.35 6.64
----------- -----------
Book value (GAAP) $ 8.85 $ 17.12
=========== ===========
Efficiency ratio reconciliation
Operating efficiency ratio 72.72% 67.43%
Gain from acquisition (3.55) -
Noncash goodwill impairment charge 40.68 -
Severance costs 1.24 -
----------- -----------
Efficiency ratio (GAAP) 111.09% 67.43%
=========== ===========
Average equity to assets reconciliation
Tangible common equity to assets 5.74% 6.70%
Effect of preferred equity 2.18 .01
----------- -----------
Tangible equity to assets 7.92 6.71
Effect of goodwill and other intangibles 2.92 3.58
----------- -----------
Equity to assets (GAAP) 10.84% 10.29%
=========== ===========
Actual tangible common equity to risk-weighted
assets reconciliation
Tangible common equity to risk-weighted assets 10.33% 8.26%
Effect of other comprehensive income (.87) (.28)
Effect of deferred tax limitation (.56) -
Effect of trust preferred .89 .68
Effect of preferred equity 2.94 -
----------- -----------
Tier I capital ratio (Regulatory) 12.73% 8.66%
=========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2009
--------------------------------
Third Second First
(in millions) Quarter(1) Quarter(1) Quarter
---------- ---------- ----------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,787 $ 1,797 $ 1,779
Commercial construction 380 379 377
Commercial & industrial 403 399 387
---------- ---------- ----------
Total commercial 2,570 2,575 2,543
Residential construction 1,185 1,315 1,430
Residential mortgage 1,461 1,470 1,504
Consumer / installment 147 153 156
---------- ---------- ----------
Total loans $ 5,363 $ 5,513 $ 5,633
========== ========== ==========
LOANS BY MARKET
Atlanta MSA $ 1,526 $ 1,605 $ 1,660
Gainesville MSA 402 413 422
North Georgia 1,942 1,978 2,014
Western North Carolina 786 794 808
Coastal Georgia 440 455 460
East Tennessee 267 268 269
---------- ---------- ----------
Total loans $ 5,363 $ 5,513 $ 5,633
========== ========== ==========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 380 $ 413 $ 445
Land loans 159 159 155
Lot loans 336 369 390
---------- ---------- ----------
Total 875 941 990
---------- ---------- ----------
House loans
Spec 218 268 317
Sold 92 106 123
---------- ---------- ----------
Total 310 374 440
---------- ---------- ----------
Total residential construction $ 1,185 $ 1,315 $ 1,430
========== ========== ==========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development $ 100 $ 124 $ 148
Land loans 61 63 52
Lot loans 54 81 98
---------- ---------- ----------
Total 215 268 298
---------- ---------- ----------
House loans
Spec 91 127 164
Sold 22 29 33
---------- ---------- ----------
Total 113 156 197
---------- ---------- ----------
Total residential construction $ 328 $ 424 $ 495
========== ========== ==========
(1) Excludes total loans of $104.0 million and $109.9 million as of
September 30, 2009 and June 30, 2009, respectively, that are covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
(2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
Linked Year over
Quarter Year
2008 Change(2) Change
--------------------- -------- --------
Fourth Third
(in millions) Quarter Quarter Actual Actual
---------- ---------- -------- --------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,627 $ 1,604 (2)% 11%
Commercial construction 500 509 1 (25)
Commercial & industrial 410 425 4 (5)
---------- ----------
Total commercial 2,537 2,538 (1) 1
Residential construction 1,479 1,596 (40) (26)
Residential mortgage 1,526 1,528 (2) (4)
Consumer / installment 163 168 (16) (13)
---------- ----------
Total loans $ 5,705 $ 5,830 (11) (8)
========== ==========
LOANS BY MARKET
Atlanta MSA $ 1,706 $ 1,800 (20)% (15)%
Gainesville MSA 420 426 (11) (6)
North Georgia 2,040 2,066 (7) (6)
Western North Carolina 810 815 (4) (4)
Coastal Georgia 464 458 (13) (4)
East Tennessee 265 265 (1) 1
---------- ----------
Total loans $ 5,705 $ 5,830 (11) (8)
========== ==========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 484 $ 516 (32)% (26)%
Land loans 153 142 - 12
Lot loans 358 385 (36) (13)
---------- ----------
Total 995 1,043 (28) (16)
---------- ----------
House loans
Spec 347 393 (75)% (45)%
Sold 137 160 (53) (43)
---------- ----------
Total 484 553 (68) (44)
---------- ----------
Total residential construction $ 1,479 $ 1,596 (40) (26)
========== ==========
RESIDENTIAL CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition & development $ 167 $ 185 (77)% (46)%
Land loans 56 47 (13) 30
Lot loans 86 103 (133) (48)
---------- ----------
Total 309 335 (79) (36)
---------- ----------
House loans
Spec 189 227 (113)% (60)%
Sold 40 49 (97) (55)
---------- ----------
Total 229 276 (110) (59)
---------- ----------
Total residential construction $ 538 $ 611 (91) (46)
========== ==========
(1) Excludes total loans of $104.0 million and $109.9 million as of
September 30, 2009 and June 30, 2009, respectively, that are covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
(2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Third Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
-------------- ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 38,379 $ 12,566 $ 50,945
Commercial construction 38,505 5,543 44,048
Commercial & industrial 3,794 - 3,794
-------------- ------------ ------------
Total commercial 80,678 18,109 98,787
Residential construction 171,027 79,045 250,072
Residential mortgage 50,626 13,456 64,082
Consumer / installment 2,050 - 2,050
-------------- ------------ ------------
Total NPAs $ 304,381 $ 110,610 $ 414,991
============== ============ ============
NPAs BY MARKET
Atlanta MSA $ 120,599 $ 54,670 $ 175,269
Gainesville MSA 12,916 8,429 21,345
North Georgia 96,373 36,718 133,091
Western North Carolina 25,775 5,918 31,693
Coastal Georgia 38,414 3,045 41,459
East Tennessee 10,304 1,830 12,134
-------------- ------------ ------------
Total NPAs $ 304,381 $ 110,610 $ 414,991
============== ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Second Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
-------------- ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 37,755 $ 5,395 $ 43,150
Commercial construction 15,717 5,847 21,564
Commercial & industrial 11,378 - 11,378
-------------- ------------ ------------
Total commercial 64,850 11,242 76,092
Residential construction 176,400 81,648 258,048
Residential mortgage 44,256 11,864 56,120
Consumer / installment 2,342 - 2,342
-------------- ------------ ------------
Total NPAs $ 287,848 $ 104,754 $ 392,602
============== ============ ============
NPAs BY MARKET
Atlanta MSA $ 148,155 $ 50,450 $ 198,605
Gainesville MSA 9,745 3,511 13,256
North Georgia 72,174 37,454 109,628
Western North Carolina 21,814 7,245 29,059
Coastal Georgia 30,311 3,904 34,215
East Tennessee 5,649 2,190 7,839
-------------- ------------ ------------
Total NPAs $ 287,848 $ 104,754 $ 392,602
============== ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
First Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
-------------- ------------ ------------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 18,188 $ 3,811 $ 21,999
Commercial construction 6,449 2,948 9,397
Commercial & industrial 12,066 - 12,066
-------------- ------------ ------------
Total commercial 36,703 6,759 43,462
Residential construction 187,656 58,327 245,983
Residential mortgage 33,148 10,297 43,445
Consumer / installment 1,648 - 1,648
-------------- ------------ ------------
Total NPAs $ 259,155 $ 75,383 $ 334,538
============== ============ ============
NPAs BY MARKET
Atlanta MSA $ 131,020 $ 48,574 $ 179,594
Gainesville MSA 17,448 694 18,142
North Georgia 66,875 20,811 87,686
Western North Carolina 21,240 3,067 24,307
Coastal Georgia 15,699 1,286 16,985
East Tennessee 6,873 951 7,824
-------------- ------------ ------------
Total NPAs $ 259,155 $ 75,383 $ 334,538
============== ============ ============
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Third Quarter 2009 Second Quarter 2009 First Quarter 2009
------------------ ------------------- ------------------
Net Net Net
Charge- Charge- Charge-
Net Offs to Net Offs to Net Offs to
Charge- Average Charge- Average Charge- Average
(in thousands) Offs Loans(2) Offs Loans(2) Offs Loans(2)
-------- -------- -------- -------- -------- --------
NET CHARGE-OFFS
BY CATEGORY
Commercial
(sec. by RE) $ 10,568 2.33% $ 5,986 1.34% $ 826 .20%
Commercial
construction 4,369 4.55 756 .80 54 .05
Commercial &
industrial 1,792 1.76 3,107 3.16 873 .89
-------- -------- --------
Total
commercial 16,729 2.57 9,849 1.54 1,753 .28
Residential
construction 67,520 21.31 44,240 12.90 37,762 10.52
Residential
mortgage 5,051 1.36 3,526 .95 2,984 .80
Consumer /
installment 1,191 3.13 697 1.80 782 1.99
-------- -------- --------
Total $ 90,491 6.57 $ 58,312 4.18 $ 43,281 3.09
======== ======== ========
NET CHARGE-OFFS
BY MARKET
Atlanta MSA $ 50,129 12.61% $ 37,473 8.89% $ 26,228 6.16%
Gainesville MSA 1,473 1.60 4,125 4.38 1,105 1.18
North Georgia 24,017 4.74 12,571 2.52 8,208 1.64
Western North
Carolina 3,949 1.98 1,015 .51 3,669 1.83
Coastal Georgia 10,051 8.78 969 .85 3,229 2.84
East Tennessee 872 1.30 2,159 3.21 842 1.28
-------- -------- --------
Total $ 90,491 6.57 $ 58,312 4.18 $ 43,281 3.09
======== ======== ========
Third Second First
(in thousands) Quarter Quarter Quarter
2009 2009 2009
-------- -------- --------
FORECLOSED
PROPERTIES
Beginning
balance $104,754 $ 75,383 $ 59,768
Foreclosures
transferred in 56,624 64,417 38,742
Capital costs
added 579 1,324 1,452
Write downs (1,906) (2,738) (2,151)
Proceeds from
sales (49,441) (33,632) (22,428)
-------- -------- --------
Total $110,610 $104,754 $ 75,383
======== ======== ========
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank. (2) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Three Months Ended
September 30,
--------------------
(in thousands, except per share data) 2009 2008
--------- ---------
Interest revenue:
Loans, including fees $ 80,874 $ 93,233
Investment securities, including tax exempt of
$328, $348, $956 and $1,140 18,820 18,606
Federal funds sold, commercial paper, deposits in
banks and other 907 100
--------- ---------
Total interest revenue 100,601 111,939
--------- ---------
Interest expense:
Deposits:
NOW 2,528 6,778
Money market 2,711 2,296
Savings 130 153
Time 28,183 39,044
--------- ---------
Total deposit interest expense 33,552 48,271
Federal funds purchased, repurchase agreements
and other short-term borrowings 613 1,116
Federal Home Loan Bank advances 1,300 2,105
Long-term debt 2,712 2,227
--------- ---------
Total interest expense 38,177 53,719
--------- ---------
Net interest revenue 62,424 58,220
Provision for loan losses 95,000 76,000
--------- ---------
Net interest revenue after provision for loan
losses (32,576) (17,780)
--------- ---------
Fee revenue:
Service charges and fees 8,138 8,171
Mortgage loan and other related fees 1,832 1,410
Consulting fees 2,282 1,727
Brokerage fees 456 905
Securities gains, net 1,149 120
Gain from acquisition - -
Other 1,814 788
--------- ---------
Total fee revenue 15,671 13,121
--------- ---------
Total revenue (16,905) (4,659)
--------- ---------
Operating expenses:
Salaries and employee benefits 25,881 28,626
Communications and equipment 3,732 3,909
Occupancy 4,098 3,905
Advertising and public relations 887 1,399
Postage, printing and supplies 1,277 1,493
Professional fees 2,255 1,596
Foreclosed property 7,918 10,109
FDIC assessments and other regulatory charges 2,801 1,509
Amortization of intangibles 813 752
Other 3,944 3,672
Goodwill impairment 25,000 -
Severance costs - -
--------- ---------
Total operating expenses 78,606 56,970
--------- ---------
Loss before income taxes (95,511) (61,629)
Income tax benefit (26,793) (21,755)
--------- ---------
Net loss (68,718) (39,874)
Preferred stock dividends, including discount
accretion 2,562 4
--------- ---------
Net loss available to common shareholders $ (71,280) $ (39,878)
========= =========
Basic loss per common share $ (1.43) $ (.84)
Diluted loss per common share (1.43) (.84)
Weighted average common shares outstanding - Basic 49,771 47,417
Weighted average common shares outstanding - Diluted 49,771 47,417
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Nine Months Ended
September 30,
----------------------
(in thousands, except per share data) 2009 2008
---------- ----------
Interest revenue:
Loans, including fees $ 244,445 $ 299,550
Investment securities, including tax exempt of
$328, $348, $956 and $1,140 60,057 56,905
Federal funds sold, commercial paper, deposits in
banks and other 1,447 372
---------- ----------
Total interest revenue 305,949 356,827
---------- ----------
Interest expense:
Deposits:
NOW 8,708 22,581
Money market 7,217 7,519
Savings 378 560
Time 96,300 116,756
---------- ----------
Total deposit interest expense 112,603 147,416
Federal funds purchased, repurchase agreements
and other short-term borrowings 1,761 7,254
Federal Home Loan Bank advances 3,577 10,668
Long-term debt 8,241 6,366
---------- ----------
Total interest expense 126,182 171,704
---------- ----------
Net interest revenue 179,767 185,123
Provision for loan losses 220,000 99,000
---------- ----------
Net interest revenue after provision for loan
losses (40,233) 86,123
---------- ----------
Fee revenue:
Service charges and fees 22,729 23,941
Mortgage loan and other related fees 7,308 5,575
Consulting fees 5,048 5,786
Brokerage fees 1,642 2,812
Securities gains, net 741 477
Gain from acquisition 11,390 -
Other 4,099 3,832
---------- ----------
Total fee revenue 52,957 42,423
---------- ----------
Total revenue 12,724 128,546
---------- ----------
Operating expenses:
Salaries and employee benefits 82,778 86,133
Communications and equipment 11,106 11,593
Occupancy 11,758 11,325
Advertising and public relations 3,187 4,759
Postage, printing and supplies 3,753 4,533
Professional fees 7,354 5,196
Foreclosed property 17,974 13,872
FDIC assessments and other regulatory charges 12,293 4,040
Amortization of intangibles 2,291 2,264
Other 9,029 10,545
Goodwill impairment 95,000 -
Severance costs 2,898 -
---------- ----------
Total operating expenses 259,421 154,260
---------- ----------
Loss before income taxes (246,697) (25,714)
Income tax benefit (58,205) (9,011)
---------- ----------
Net loss (188,492) (16,703)
Preferred stock dividends, including discount
accretion 7,675 12
---------- ----------
Net loss available to common shareholders $ (196,167) $ (16,715)
========== ==========
Basic loss per common share $ (4.01) $ (.35)
Diluted loss per common share (4.01) (.35)
Weighted average common shares outstanding - Basic 48,968 47,210
Weighted average common shares outstanding - Diluted 48,968 47,210
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share September 30, December 31, September 30,
and per share data) 2009 2008 2008
------------- ------------- -------------
(unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks $ 195,559 $ 116,395 $ 126,033
Interest-bearing deposits
in banks 78,589 8,417 40,707
Federal funds sold,
commercial paper and
short-term investments 397,361 368,609 -
------------- ------------- -------------
Cash and cash
equivalents 671,509 493,421 166,740
Securities available for sale 1,532,514 1,617,187 1,400,827
Mortgage loans held for sale 20,460 20,334 17,763
Loans, net of unearned income 5,362,689 5,704,861 5,829,937
Less allowance for
loan losses 150,187 122,271 111,299
------------- ------------- -------------
Loans, net 5,212,502 5,582,590 5,718,638
Covered assets 197,914 - -
Premises and equipment, net 179,467 179,160 179,727
Accrued interest receivable 35,679 46,088 47,920
Goodwill and other
intangible assets 226,008 321,798 322,544
Other assets 367,564 331,355 259,802
------------- ------------- -------------
Total assets $ 8,443,617 $ 8,591,933 $ 8,113,961
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 703,054 $ 654,036 $ 680,196
NOW 1,318,264 1,543,385 1,393,928
Money market 687,780 466,750 394,358
Savings 180,738 170,275 179,274
Time:
Less than $100,000 1,854,726 1,953,235 1,814,926
Greater than $100,000 1,237,172 1,422,974 1,481,512
Brokered 839,572 792,969 745,141
------------- ------------- -------------
Total deposits 6,821,306 7,003,624 6,689,335
Federal funds purchased,
repurchase agreements,
and other short-term
borrowings 101,951 108,411 119,699
Federal Home Loan Bank
advances 314,704 235,321 285,362
Long-term debt 150,046 150,986 137,996
Accrued expenses and other
liabilities 48,972 104,209 64,689
------------- ------------- -------------
Total liabilities 7,436,979 7,602,551 7,297,081
------------- ------------- -------------
Shareholders' equity:
Preferred stock, $1 par value;
10,000,000 shares authorized;
Series A; $10 stated value;
21,700, 25,800 and 25,800
shares issued and
outstanding 217 258 258
Series B; $1,000 stated value;
180,000 shares issued and
outstanding 174,095 173,180 -
Common stock, $1 par value;
100,000,000 shares authorized;
93,901,492, 48,809,301
and 48,809,301 shares issued 93,901 48,809 48,809
Common stock issuable; 196,818,
129,304 and 116,567 shares 3,471 2,908 2,762
Capital surplus 620,494 460,708 457,779
Retained earnings 62,786 265,405 317,544
Treasury stock; 799,892 and
1,213,182 shares, at cost - (16,465) (27,024)
Accumulated other
comprehensive income 51,674 54,579 16,752
------------- ------------- -------------
Total shareholders' equity 1,006,638 989,382 816,880
Total liabilities and
shareholders' equity $ 8,443,617 $ 8,591,933 $ 8,113,961
============= ============= =============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
2009
---------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 5,565,498 $ 80,880 5.77%
Taxable securities (3) 1,585,154 18,492 4.67
Tax-exempt securities (1)(3) 30,345 537 7.08
Federal funds sold and other
interest-earning assets 219,542 1,272 2.32
----------- ------------
Total interest-earning assets 7,400,539 101,181 5.43
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (147,074)
Cash and due from banks 107,062
Premises and equipment 179,764
Other assets (3) 667,908
-----------
Total assets $ 8,208,199
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,238,596 $ 2,528 .81
Money market 628,392 2,711 1.71
Savings 180,216 130 .29
Time less than $100,000 1,918,439 13,300 2.75
Time greater than $100,000 1,292,786 10,106 3.10
Brokered 707,678 4,777 2.68
----------- ------------
Total interest-bearing deposits 5,966,107 33,552 2.23
----------- ------------
Federal funds purchased and other
borrowings 234,211 613 1.04
Federal Home Loan Bank advances 210,625 1,300 2.45
Long-term debt 150,353 2,712 7.16
----------- ------------
Total borrowed funds 595,189 4,625 3.08
----------- ------------
Total interest-bearing liabilities 6,561,296 38,177 2.31
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 723,841
Other liabilities 79,932
-----------
Total liabilities 7,365,069
Shareholders' equity 843,130
-----------
Total liabilities and shareholders'
equity $ 8,208,199
===========
Net interest revenue $ 63,004
============
Net interest-rate spread 3.12%
=======
Net interest margin (4) 3.39%
=======
(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 $13.8 million in 2009 and pretax unrealized losses
of $11.7 million in 2008 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 September 30,
2008
---------------------------------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 5,889,168 $ 93,270 6.30%
Taxable securities (3) 1,422,321 18,258 5.13
Tax-exempt securities (1)(3) 32,419 573 7.07
Federal funds sold and other
interest-earning assets 40,379 409 4.05
----------- ------------
Total interest-earning assets 7,384,287 112,510 6.07
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (93,687)
Cash and due from banks 111,741
Premises and equipment 180,825
Other assets (3) 581,528
-----------
Total assets $ 8,164,694
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,463,744 $ 6,778 1.84
Money market 421,626 2,296 2.17
Savings 182,525 153 .33
Time less than $100,000 1,779,550 17,812 3.98
Time greater than $100,000 1,530,719 15,825 4.11
Brokered 530,705 5,407 4.05
----------- ------------
Total interest-bearing deposits 5,908,869 48,271 3.25
----------- ------------
Federal funds purchased and other
borrowings 256,742 1,116 1.73
Federal Home Loan Bank advances 286,540 2,105 2.92
Long-term debt 118,756 2,227 7.46
----------- ------------
Total borrowed funds 662,038 5,448 3.27
----------- ------------
Total interest-bearing liabilities 6,570,907 53,719 3.25
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 688,470
Other liabilities 67,830
-----------
Total liabilities 7,327,207
Shareholders' equity 837,487
-----------
Total liabilities and shareholders'
equity $ 8,164,694
===========
Net interest revenue $ 58,791
============
Net interest-rate spread 2.82%
=======
Net interest margin (4) 3.17%
=======
(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 $13.8 million in 2009 and pretax unrealized losses
of $11.7 million in 2008 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 Nine Months Ended September 30,
2009
----------- ------------ -------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 5,612,202 $ 244,196 5.82%
Taxable securities (3) 1,669,768 59,101 4.72
Tax-exempt securities (1)(3) 29,754 1,565 7.01
Federal funds sold and other
interest-earning assets 145,449 2,618 2.40
----------- ------------
Total interest-earning assets 7,457,173 307,480 5.51
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (141,255)
Cash and due from banks 104,444
Premises and equipment 179,569
Other assets (3) 663,674
-----------
Total assets $ 8,263,605
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,284,522 $ 8,708 .91
Money market 543,122 7,217 1.78
Savings 177,147 378 .29
Time less than $100,000 1,918,379 45,859 3.20
Time greater than $100,000 1,336,876 34,444 3.44
Brokered 726,352 15,997 2.94
----------- ------------
Total interest-bearing deposits 5,986,398 112,603 2.51
----------- ------------
Federal funds purchased and other
borrowings 202,008 1,761 1.17
Federal Home Loan Bank advances 241,863 3,577 1.98
Long-term debt 150,788 8,241 7.31
----------- ------------
Total borrowed funds 594,659 13,579 3.05
----------- ------------
Total interest-bearing liabilities 6,581,057 126,182 2.56
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 684,942
Other liabilities 101,447
-----------
Total liabilities 7,367,446
Shareholders' equity 896,159
-----------
Total liabilities and shareholders'
equity $ 8,263,605
===========
Net interest revenue $ 181,298
============
Net interest-rate spread 2.95%
=======
Net interest margin (4) 3.25%
=======
(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 2009 and $5.7 million in 2008 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 Nine Months Ended September 30,
2008
----------- ------------ -------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -------
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 5,926,731 $ 299,601 6.75%
Taxable securities (3) 1,447,409 55,765 5.14
Tax-exempt securities (1)(3) 34,988 1,876 7.15
Federal funds sold and other
interest-earning assets 41,889 1,292 4.11
----------- ------------
Total interest-earning assets 7,451,017 358,534 6.43
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (93,165)
Cash and due from banks 136,920
Premises and equipment 181,210
Other assets (3) 586,871
-----------
Total assets $ 8,262,853
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,476,998 $ 22,581 2.04
Money market 427,676 7,519 2.35
Savings 184,713 560 .40
Time less than $100,000 1,659,308 53,320 4.29
Time greater than $100,000 1,460,277 48,330 4.42
Brokered 480,166 15,106 4.20
----------- ------------
Total interest-bearing deposits 5,689,138 147,416 3.46
----------- ------------
Federal funds purchased and other
borrowings 396,798 7,254 2.44
Federal Home Loan Bank advances 452,826 10,668 3.15
Long-term debt 111,607 6,366 7.62
----------- ------------
Total borrowed funds 961,231 24,288 3.38
----------- ------------
Total interest-bearing
liabilities 6,650,369 171,704 3.45
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 681,615
Other liabilities 80,957
-----------
Total liabilities 7,412,941
Shareholders' equity 849,912
-----------
Total liabilities and shareholders'
equity $ 8,262,853
===========
Net interest revenue $ 186,830
============
Net interest-rate spread 2.98%
=======
Net interest margin (4) 3.35%
=======
(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 2009 and $5.7 million in 2008 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=103441177171434B
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