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United Community Banks, Inc. Reports Net Operating Loss for Fourth Quarter 2009
United Community Banks, Inc. Reports Net Operating Loss for Fourth Quarter 2009
Jan 29, 2010
BLAIRSVILLE, GA, Jan 29, 2010 (MARKETWIRE via COMTEX News Network) -- United Community Banks, Inc. (NASDAQ: UCBI)
-- Non-performing assets down $30 million to $385 million from last
quarter
-- Provision for loan losses of $90 million exceeded charge-offs by $5.4
million
-- Allowance-to-loans ratio of 3.02 percent, up from 2.80 percent last
quarter
-- Margin continues to improve to 3.40%, up 70 basis points from a year
ago
-- Capital ratios remain strong
United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss of $39.8 million, or 45 cents per diluted share, for the fourth quarter of 2009.
Net operating loss for the year 2009 was $138.6 million, or $2.47 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-operating items and are therefore excluded from operating earnings. Including these non-operating items, the net loss for 2009 was $228.3 million, or $3.95 per diluted share.
"Credit continues to be our major challenge," stated Jimmy Tallent, president and chief executive officer. "We were able to sell non-performing loans and foreclosed properties totaling $81 million, up from $55 million in the third quarter. In addition, we made significant progress in 2009 in terms of implementing offensive strategies that allowed us to almost double our quarter's core earnings from a year ago."
Total loans were $5.151 billion at year-end, down $212 million from the third quarter and $554 million from year-end 2008, reflecting ongoing reductions due to weakness in the residential construction market and the overall weak business environment. "The decline in loans was primarily in residential construction and acquisition and development loans," stated Tallent. As of December 31, 2009, residential construction loans were $1.050 billion, or 20 percent of total loans, a decrease of $429 million from a year ago and $135 million from the third quarter of 2009. Our new loan business continues to offset some of this decline and totaled $273 million, or five percent for the year. The growth was consistent for all quarters, with the majority of the growth in commercial loans within the Atlanta market.
Taxable equivalent net interest revenue of $63.9 million reflected an increase of $925 thousand from last quarter. "The taxable equivalent net interest margin was 3.40 percent, up slightly from 3.39 percent last quarter," stated Tallent. "The margin improvement would have been greater, but we made a decision to build liquidity due to uncertainties in the market. This lowered our margin by approximately 20 basis points this quarter compared to two basis points last quarter. We expect most of the excess liquidity to run off in the first half of 2010. During the quarter we continued to maintain our loan pricing while significantly reducing deposit costs, which drove the expansion of our net interest margin."
"Though core customer transaction deposits were up only slightly from the third quarter, they grew $205 million for the year, or 10 percent, excluding the acquisition in the second quarter," Tallent said. "This growth reflects the continued success of adding to our customer base through customer referral and cross-selling programs. For the full year of 2009, we opened 9,904 net new core deposit accounts and added 60,318 new services."
The fourth quarter provision for loan losses was $90.0 million compared to $95.0 million for the third quarter of 2009. Net charge-offs for the fourth quarter were $84.6 million compared to $90.5 million for the third quarter of 2009. At quarter-end, non-performing assets totaled $385 million compared to $415 million at September 30, 2009. The ratio of non-performing assets to total assets at the end of the fourth and third quarters was 4.81 percent and 4.91 percent, respectively. The allowance for loan losses to total loans was 3.02 percent and 2.80 percent, respectively.
"We are pleased to report a decline in non-performing assets in the fourth quarter," stated Tallent. "Also, on the positive side, we did see a decline this quarter in our classified and watch list loans. Our past due loans over 30 days declined from 2.02 percent to 1.44 percent. Residential construction loans continue to be at the center of our challenges. In terms of non-performing assets, we are hopeful our declining trend will continue given the portfolio run-off in Atlanta, and the decline in past dues and classified loans. However, we could face more difficulty liquidating properties in our non-Atlanta markets. We expect charge-offs to decline from current levels, but remain elevated in 2010."
Operating fee revenue of $17.2 million for the fourth quarter of 2009 increased $1.6 million from last quarter and $6.5 million from last year primarily due to non-core revenue items. These non-core items included securities gains of $2.0 million, $1.1 million and $838 thousand for the fourth quarter 2009, third quarter 2009 and fourth quarter 2008, respectively. Also, the fourth quarter 2008 included $2.7 million in prepayment charges to restructure borrowings. Excluding these items, core fee revenue was $15.2 million for the fourth quarter of 2009, compared to $14.5 million for last quarter and $12.6 million a year ago. Service charges and fees of $8.3 million for the fourth quarter of 2009 were up $515 thousand from a year ago, primarily due to higher ATM and debit card fees relating to an increase in transactions and new customer accounts. Consulting fees of $2.8 million were up $492 thousand from last quarter and $1.5 million from a year ago due in large part to increasing demand for regulatory compliance assistance. Consulting fees were down in the fourth quarter of 2008 due to an internal project for United to improve profitability that did not result in the recognition of revenue.
Operating expenses for the fourth quarter of 2009 were $62.5 million, an increase of $10.1 million from fourth quarter 2008, driven by the $9.2 million increase in foreclosed property costs and $1.7 million increase in FDIC insurance premiums. Foreclosed property costs for the fourth quarter were $14.4 million as compared to $5.2 million last year and $7.9 million last quarter. Foreclosed property costs this quarter included $9.6 million for write-downs and losses on sales and $4.8 million for maintenance, property taxes, and other related costs. This quarter included $7.4 million of losses on sales due to the higher volume of property sold during the quarter. Also, $2.2 million of additional write downs were taken on existing foreclosed properties to help expedite future sales. Salary and benefit costs for the fourth quarter totaled $26.2 million, up from $24.4 million last year due primarily to a $3.0 million bonus accrual reduction and a deferred compensation credit adjustment of $736 thousand recorded last year. Excluding these items, salary and benefit costs were down $2.0 million compared to last year, reflective of the reduction in work force of 183 staff positions during 2009, that was offset partially by the acquisition of Southern Community Bank in June 2009. Communications costs for the quarter remained flat, while advertising and printing costs were down $325 thousand and $448 thousand, respectively, from last year. Other expenses of $4.5 million decreased $2.5 million from the fourth quarter of 2008, due primarily to $2.0 million of bank owned life insurance expenses accrued last year that were later recovered in the second quarter of 2009 with the decision to cancel the surrender of our bank owned life insurance policies.
The effective tax rate for the fourth quarter of 2009 was 45 percent, compared to 28 percent last quarter and 38 percent last year. The fourth quarter 2009 tax benefit includes the favorable settlement of a several-year state tax audit dispute that was fully reserved due to the uncertainty of the tax position. The third quarter 2008 effective rate was lower due to a goodwill impairment charge which was not a taxable event and therefore did not result in the recognition of a tax benefit. The effective tax rate for 2010 is expected to be 40 percent, slightly higher than the effective tax rate for 2008.
On December 31, 2009, the company's regulatory capital ratios were as follows: Tier I Risk-Based Capital of 12.4 percent; Leverage of 8.5 percent; and Total Risk-Based of 15.1 percent. Also, the quarterly average tangible equity-to-assets ratio was 9.5 percent and tangible common equity-to-assets ratio was 7.4 percent.
"Our ultimate goal is to return to profitability as soon as possible, and our attention is relentlessly focused toward that goal," concluded Tallent.
Conference Call
United Community Banks will hold a conference call today, Friday, January 29, 2010, 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) 806-6208 and use the password '8006436.' 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 web site at http://ir.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 $8.0 billion and operates 27 community banks with 107 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
(in thousands,
except per 2009 2008
share ---------------------------------------------- ----------
data; taxable Fourth Third Second First Fourth
equivalent) Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ----------
INCOME SUMMARY
Interest
revenue $ 97,481 $ 101,181 $ 102,737 $ 103,562 $ 108,434
Interest
expense 33,552 38,177 41,855 46,150 56,561
---------- ---------- ---------- ---------- ----------
Net
interest
revenue 63,929 63,004 60,882 57,412 51,873
Provision for
loan losses 90,000 95,000 60,000 65,000 85,000
Operating fee
revenue (1) 17,221 15,671 13,050 12,846 10,718
---------- ---------- ---------- ---------- ----------
Total
operating
revenue (1) (8,850) (16,325) 13,932 5,258 (22,409)
Operating
expenses (2) 62,532 53,606 55,348 52,569 52,439
---------- ---------- ---------- ---------- ----------
Operating
loss before
taxes (71,382) (69,931) (41,416) (47,311) (74,848)
Operating
income tax
benefit (31,547) (26,213) (18,353) (15,335) (28,101)
---------- ---------- ---------- ---------- ----------
Net operating
loss (1)(2) (39,835) (43,718) (23,063) (31,976) (46,747)
Gain from
acquisition,
net of tax
expense - - 7,062 - -
Noncash
goodwill
impairment
charge - (25,000) - (70,000) -
Severance
costs, net of
tax benefit - - - (1,797) -
---------- ---------- ---------- ---------- ----------
Net loss (39,835) (68,718) (16,001) (103,773) (46,747)
Preferred
dividends and
discount
accretion 2,567 2,562 2,559 2,554 712
Net loss
available
to common ---------- ---------- ---------- ---------- ----------
shareholders $ (42,402) $ (71,280) $ (18,560) $ (106,327) $ (47,459)
========== ========== ========== ========== ==========
PERFORMANCE
MEASURES
Per common
share:
Diluted
operating
loss
(1)(2) $ (.45) $ (.93) $ (.53) $ (.71) $ (.99)
Diluted
loss (.45) (1.43) (.38) (2.20) (.99)
Cash
dividends
declared - - - - -
Stock
dividends
declared
(6) - 1 for 130 1 for 130 1 for 130 1 for 130
Book value 8.36 8.85 13.87 14.70 16.95
Tangible
book
value (4) 6.02 6.50 8.85 9.65 10.39
Key
performance
ratios:
Return on
equity
(3)(5) (22.08)% (45.52)% (11.42)% (58.28)% (23.83)%
Return on
assets
(5) (1.91) (3.32) (.78) (5.03) (2.19)
Net
interest
margin
(5) 3.40 3.39 3.28 3.08 2.70
Operating
efficiency
ratio (1)(2) 79.02 69.15 74.15 75.15 81.34
Equity to
assets 11.94 10.27 10.71 11.56 10.04
Tangible
equity to
assets (4) 9.53 7.55 7.96 8.24 6.56
Tangible
common
equity to
assets (4) 7.37 5.36 5.77 6.09 6.21
Tangible
common
equity to
risk-
weighted
assets (4) 10.39 10.67 7.49 8.03 8.34
ASSET QUALITY *
Non-performing
loans
(NPLs) $ 264,092 $ 304,381 $ 287,848 $ 259,155 $ 190,723
Foreclosed
properties 120,770 110,610 104,754 75,383 59,768
---------- ---------- ---------- ---------- ----------
Total
non-
performing
assets
(NPAs) 384,862 414,991 392,602 334,538 250,491
Allowance
for loan
losses 155,602 150,187 145,678 143,990 122,271
Net
charge-offs 84,585 90,491 58,312 43,281 74,028
Allowance
for loan
losses to
loans 3.02 % 2.80 % 2.64 % 2.56 % 2.14 %
Net
charge-offs
to average
loans (5) 6.37 6.57 4.18 3.09 5.09
NPAs to
loans and
foreclosed
properties 7.30 7.58 6.99 5.86 4.35
NPAs to
total
assets 4.81 4.91 4.63 4.09 2.92
AVERAGE
BALANCES
Loans $5,357,150 $5,565,498 $5,597,259 $5,675,054 $5,784,139
Investment
securities 1,528,805 1,615,499 1,771,482 1,712,654 1,508,808
Earning
assets 7,486,790 7,400,539 7,442,178 7,530,230 7,662,536
Total assets 8,286,544 8,208,199 8,212,140 8,372,281 8,487,017
Deposits 6,835,052 6,689,948 6,544,537 6,780,531 6,982,229
Shareholders'
equity 989,279 843,130 879,210 967,505 851,956
Common
shares -
basic 94,219 49,771 48,794 48,324 47,844
Common
shares -
diluted 94,219 49,771 48,794 48,324 47,844
AT PERIOD END
Loans $5,151,476 $5,362,689 $5,513,087 $5,632,705 $5,704,861
Investment
securities 1,530,047 1,532,514 1,816,787 1,719,033 1,617,187
Total assets 7,999,914 8,443,617 8,477,355 8,171,663 8,591,933
Deposits 6,627,834 6,821,306 6,848,760 6,616,488 7,003,624
Shareholders'
equity 962,321 1,006,638 855,272 888,853 989,382
Common
shares
outstanding 94,046 93,901 48,933 48,487 48,009
(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
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 loss available to common
shareholders, which is net of preferred stock dividends, divided by average
realized common equity, which excludes accumulated other comprehensive
income (loss). (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
(in
thousands,
except
per share Fourth
data; Quarter For the Twelve YTD
taxable Fourth Quarter 2009- Months Ended 2009-
equiv- ------------------------ 2008 ------------------------ 2008
alent) 2009 2008 Change 2009 2008 Change
----------- ----------- ------ ----------- ----------- ------
INCOME
SUMMARY
Interest
revenue $ 97,481 $ 108,434 $ 404,961 $ 466,969
Interest
expense 33,552 56,561 159,734 228,265
----------- ----------- ----------- -----------
Net
interest
revenue 63,929 51,873 23% 245,227 238,704 3%
Provision
for loan
losses 90,000 85,000 310,000 184,000
Operating
fee
revenue
(1) 17,221 10,718 61 58,788 53,141 11
----------- ----------- ----------- -----------
Total
operating
revenue
(1) (8,850) (22,409) 61 (5,985) 107,845 (106)
Operating
expenses
(2) 62,532 52,439 19 224,055 206,699 8
----------- ----------- ----------- -----------
Operating
loss
before
taxes (71,382) (74,848) 5 (230,040) (98,854) (133)
Operating
income
tax
benefit (31,547) (28,101) (91,448) (35,404)
----------- ----------- ----------- -----------
Net
operating
loss
(1)(2) (39,835) (46,747) 15 (138,592) (63,450) (118)
Gain from
acquisition,
net of tax
expense - - 7,062 -
Noncash
goodwill
impairment
charge - - (95,000) -
Severance
costs,
net of tax
benefit - - (1,797) -
----------- ----------- ----------- -----------
Net loss (39,835) (46,747) 15 (228,327) (63,450) (260)
Preferred
dividends
and discount
accretion 2,567 712 10,242 724
Net loss
available
to common
share-
holders ----------- ----------- ----------- -----------
$ (42,402) $ (47,459) $ (238,569) $ (64,174)
=========== =========== =========== ===========
PERFORMANCE
MEASURES
Per
common
share:
Diluted
operating
loss
(1)
(2) $ (.45) $ (.99) 55 $ (2.47) $ (1.35) (83)
Diluted
loss (.45) (.99) 55 (3.95) (1.35) (193)
Cash
dividends
declared - - - .18
Stock
dividends
declared
(6) - 1 for 130 3 for 130 2 for 130
Book
value 8.36 16.95 (51) 8.36 16.95 (51)
Tangible
book
value
(4) 6.02 10.39 (42) 6.02 10.39 (42)
Key
performance
ratios:
Return
on
equity
(3)(5) (22.08)% (23.83)% (34.40)% (7.82)%
Return
on
assets
(5) (1.91) (2.19) (2.76) (.76)
Net
interest
margin (5) 3.40 2.70 3.29 3.18
Operating
efficiency
ratio
(1)(2) 79.02 81.34 74.37 70.49
Equity
to
assets 11.94 10.04 11.12 10.22
Tangible
equity to
assets (4) 9.53 6.56 8.33 6.67
Tangible
common
equity
to assets
(4) 7.37 6.21 6.15 6.57
Tangible
common
equity
to risk-
weighted
assets
(4) 10.39 8.34 10.39 8.34
ASSET
QUALITY *
Non-
performing
loans
(NPLs) $ 264,092 $ 190,723 $ 264,092 $ 190,723
Foreclosed
proper-
ties 120,770 59,768 120,770 59,768
----------- ----------- ----------- -----------
Total
non-
performing
assets
(NPAs) 384,862 250,491 384,862 250,491
Allowance
for loan
losses 155,602 122,271 155,602 122,271
Net
charge-
offs 84,585 74,028 276,669 151,152
Allowance
for loan
losses to
loans 3.02 % 2.14 % 3.02 % 2.14 %
Net
charge-
offs to
average
loans (5) 6.37 5.09 5.03 2.57
NPAs to
loans
and
foreclosed
properties 7.30 4.35 7.30 4.35
NPAs to
total
assets 4.81 2.92 4.81 2.92
AVERAGE
BALANCES
Loans $ 5,357,150 $ 5,784,139 (7)$ 5,547,915 $ 5,890,889 (6)
Investment
securi-
ties 1,528,805 1,508,808 1 1,656,492 1,489,036 11
Earning
assets 7,486,790 7,662,536 (2) 7,464,639 7,504,186 (1)
Total
assets 8,286,544 8,487,017 (2) 8,269,387 8,319,201 (1)
Deposits 6,835,052 6,982,229 (2) 6,712,605 6,524,457 3
Share-
holders'
equity 989,279 851,956 16 919,631 850,426 8
Common
shares
- basic 94,219 47,844 60,374 47,369
Common
shares
- diluted 94,219 47,844 60,374 47,369
AT PERIOD
END
Loans $ 5,151,476 $ 5,704,861 (10)$ 5,151,476 $ 5,704,861 (10)
Investment
securi-
ties 1,530,047 1,617,187 (5) 1,530,047 1,617,187 (5)
Total
assets 7,999,914 8,591,933 (7) 7,999,914 8,591,933 (7)
Deposits 6,627,834 7,003,624 (5) 6,627,834 7,003,624 (5)
Share-
holders'
equity 962,321 989,382 (3) 962,321 989,382 (3)
Common
shares
outstand-
ing 94,046 48,009 94,046 48,009
(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
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 loss available to common shareholders, which is net of preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss). (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.
Selected Financial Information
For the Years Ended December 31,
(in thousands,
except per
share data;
taxable
equivalent) 2009 2008 2007 2006 2005
---------- ---------- ----------- ----------- -----------
INCOME
SUMMARY
Net interest
revenue $ 245,227 $ 238,704 $ 274,483 $ 237,880 $ 196,799
Provision for
loan losses
(1) 310,000 184,000 37,600 14,600 12,100
Operating fee
revenue (2) 58,788 53,141 62,651 49,095 46,148
---------- ---------- ----------- ----------- -----------
Total
operating
revenue
(1)(2) (5,985) 107,845 299,534 272,375 230,847
Operating
expenses (3) 224,055 206,699 190,061 162,070 140,808
---------- ---------- ----------- ----------- -----------
Operating
(loss)
income
before
taxes (230,040) (98,854) 109,473 110,305 90,039
Operating
income taxes (91,448) (35,404) 40,482 41,490 33,297
---------- ---------- ----------- ----------- -----------
Net
operating
(loss)
income (138,592) (63,450) 68,991 68,815 56,742
Gain from
acquisition,
net of tax 7,062 - - - -
Noncash
goodwill
impairment
charge (95,000) - - - -
Severance
cost, net of
tax benefit (1,797) - - - -
Fraud loss
provision,
net of tax
benefit - - (10,998) - -
Net (loss)
income (228,327) (63,450) 57,993 68,815 56,742
Preferred
dividends and
discount
accretion 10,242 724 18 19 23
---------- ---------- ----------- ----------- -----------
Net (loss)
income
available
to common
shareh-
olders $ (238,569) $ (64,174) $ 57,975 $ 68,796 $ 56,719
========== ========== =========== =========== ===========
PERFORMANCE
MEASURES
Per common
share:
Diluted
operating
(loss)
earnings
(1)(2)(3) $ (2.47) $ (1.35) $ 1.48 $ 1.66 $ 1.43
Diluted
(loss)
earnings (3.95) (1.35) 1.24 1.66 1.43
Cash
dividends
declared
(rounded) - .18 .36 .32 .28
Stock
dividends
declared
(6) 3 for 130 2 for 130 - - -
Book value 8.36 16.95 17.73 14.37 11.80
Tangible
book
value (5) 6.02 10.39 10.94 10.57 8.94
Key
performance
ratios:
Return on
equity
(4) (34.40)% (7.82)% 7.79% 13.28% 13.46%
Return on
assets (2.76) (.76) .75 1.09 1.04
Net
interest
margin 3.29 3.18 3.88 4.05 3.85
Operating
efficiency
ratio
(2)(3) 74.37 70.49 56.53 56.35 57.77
Equity to
assets 11.12 10.22 9.61 8.06 7.63
Tangible
equity to
assets (5) 8.33 6.67 6.63 6.32 5.64
Tangible
common
equity to
assets (5) 6.15 6.57 6.63 6.32 5.64
Tangible
common
equity to
risk-weighted
assets (5) 10.39 8.34 8.21 8.09 7.75
ASSET QUALITY *
Non-performing
loans
(NPLs) $ 264,092 $ 190,723 $ 28,219 $ 12,458 $ 11,997
Foreclosed
properties 120,770 59,768 18,039 1,196 998
---------- ---------- ----------- ----------- -----------
Total
non-
performing
assets
(NPAs) 384,862 250,491 46,258 13,654 12,995
Allowance
for loan
losses 155,602 122,271 89,423 66,566 53,595
Operating
net
charge-offs
(1) 276,669 151,152 21,834 5,524 5,701
Allowance
for loan
losses to
loans 3.02 % 2.14 % 1.51% 1.24% 1.22%
Operating
net
charge-offs
to average
loans (1) 5.03 2.57 .38 .12 .14
NPAs to
loans and
foreclosed
properties 7.30 4.35 .78 .25 .30
NPAs to
total
assets 4.81 2.92 .56 .19 .22
AVERAGE
BALANCES
Loans $5,547,915 $5,890,889 $ 5,734,608 $ 4,800,981 $ 4,061,091
Investment
securities 1,656,492 1,489,036 1,277,935 1,041,897 989,201
Earning
assets 7,464,639 7,504,186 7,070,900 5,877,483 5,109,053
Total
assets 8,269,387 8,319,201 7,730,530 6,287,148 5,472,200
Deposits 6,712,605 6,524,457 6,028,625 5,017,435 4,003,084
Shareholders'
equity 919,631 850,426 742,771 506,946 417,309
Common
shares -
Basic 60,374 47,369 45,948 40,413 38,477
Common
shares -
Diluted 60,374 47,369 46,593 41,575 39,721
AT YEAR END
Loans $5,151,476 $5,704,861 $ 5,929,263 $ 5,376,538 $ 4,398,286
Investment
securities 1,530,047 1,617,187 1,356,846 1,107,153 990,687
Total
assets 7,999,914 8,591,933 8,207,302 7,101,249 5,865,756
Deposits 6,627,834 7,003,624 6,075,951 5,772,886 4,477,600
Shareholders'
equity 962,321 989,382 831,902 616,767 472,686
Common
shares
outstanding 94,046 48,009 46,903 42,891 40,020
(1) Excludes pre-tax provision for fraud-related loan losses and related
charge-offs of $18 million, net of income tax benefit of $7 million in
2007. (2) Excludes the gain from acquisition of $11.4 million, net of
income tax expense of $4.3 million in 2009. (3) Excludes the goodwill
impairment charge of $95 million and severance costs of $2.9 million, net
of income tax benefit of $1.1 million in 2009. (4) Net (loss) income
available to common shareholders, which is net of preferred stock
dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss). (5) Excludes effect of
acquisition related intangibles and associated amortization. (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 Fourth Third Second First Fourth
equivalent) Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ----------
Interest revenue
reconciliation
Interest revenue -
taxable equivalent $ 97,481 $ 101,181 $ 102,737 $ 103,562 $ 108,434
Taxable equivalent
adjustment (601) (580) (463) (488) (553)
---------- ---------- ---------- ---------- ----------
Interest
revenue (GAAP) $ 96,880 $ 100,601 $ 102,274 $ 103,074 $ 107,881
========== ========== ========== ========== ==========
Net interest
revenue
reconciliation
Net interest
revenue - taxable
equivalent $ 63,929 $ 63,004 $ 60,882 $ 57,412 $ 51,873
Taxable equivalent
adjustment (601) (580) (463) (488) (553)
---------- ---------- ---------- ---------- ----------
Net interest
revenue (GAAP) $ 63,328 $ 62,424 $ 60,419 $ 56,924 $ 51,320
========== ========== ========== ========== ==========
Provision for loan
losses
reconciliation
Operating provision
for loan losses $ 90,000 $ 95,000 $ 60,000 $ 65,000 $ 85,000
Special
fraud-related
provision for loan
losses - - - - -
---------- ---------- ---------- ---------- ----------
Provision for
loan losses
(GAAP) $ 90,000 $ 95,000 $ 60,000 $ 65,000 $ 85,000
========== ========== ========== ========== ==========
Fee revenue
reconciliation
Operating fee
revenue $ 17,221 $ 15,671 $ 13,050 $ 12,846 $ 10,718
Gain from
acquisition - - 11,390 - -
---------- ---------- ---------- ---------- ----------
Fee revenue
(GAAP) $ 17,221 $ 15,671 $ 24,440 $ 12,846 $ 10,718
========== ========== ========== ========== ==========
Total revenue
reconciliation
Total operating
revenue $ (8,850)$ (16,325)$ 13,932 $ 5,258 $ (22,409)
Taxable equivalent
adjustment (601) (580) (463) (488) (553)
Gain from
acquisition - - 11,390 - -
Special
fraud-related
provision for loan
losses - - - - -
---------- ---------- ---------- ---------- ----------
Total revenue
(GAAP) $ (9,451)$ (16,905)$ 24,859 $ 4,770 $ (22,962)
========== ========== ========== ========== ==========
Expense
reconciliation
Operating expense $ 62,532 $ 53,606 $ 55,348 $ 52,569 $ 52,439
Noncash goodwill
impairment charge - 25,000 - 70,000 -
Severance costs - - - 2,898 -
---------- ---------- ---------- ---------- ----------
Operating
expense (GAAP) $ 62,532 $ 78,606 $ 55,348 $ 125,467 $ 52,439
========== ========== ========== ========== ==========
(Loss) income
before taxes
reconciliation
Operating (loss)
income before
taxes $ (71,382)$ (69,931)$ (41,416)$ (47,311)$ (74,848)
Taxable equivalent
adjustment (601) (580) (463) (488) (553)
Gain from
acquisition - - 11,390 - -
Noncash goodwill
impairment charge - (25,000) - (70,000) -
Severance costs - - - (2,898) -
Special
fraud-related
provision for loan
losses - - - - -
---------- ---------- ---------- ---------- ----------
(Loss) income
before taxes
(GAAP) $ (71,983)$ (95,511)$ (30,489)$ (120,697)$ (75,401)
========== ========== ========== ========== ==========
Income tax
(benefit) expense
reconciliation
Operating income
tax (benefit)
expense $ (31,547)$ (26,213)$ (18,353)$ (15,335)$ (28,101)
Taxable equivalent
adjustment (601) (580) (463) (488) (553)
Gain from
acquisition, tax
expense - - 4,328 - -
Severance costs,
tax benefit - - - (1,101) -
Special
fraud-related
provision for loan
losses - - - - -
---------- ---------- ---------- ---------- ----------
Income tax
(benefit)
expense (GAAP) $ (32,148)$ (26,793)$ (14,488)$ (16,924)$ (28,654)
========== ========== ========== ========== ==========
(Loss) earnings per
common share
reconciliation
Operating (loss)
earnings per
common share $ (.45)$ (.93)$ (.53)$ (.71)$ (.99)
Gain from
acquisition - - .15 - -
Noncash goodwill
impairment charge - (.50) - (1.45) -
Severance costs - - - (.04) -
Special
fraud-related
provision for loan
losses - - - - -
---------- ---------- ---------- ---------- ----------
(Loss) earnings
per common
share (GAAP) $ (.45)$ (1.43)$ (.38)$ (2.20)$ (.99)
========== ========== ========== ========== ==========
Book value
reconciliation
Tangible book value $ 6.02 $ 6.50 $ 8.85 $ 9.65 $ 10.39
Effect of goodwill
and other
intangibles 2.34 2.35 5.02 5.05 6.56
---------- ---------- ---------- ---------- ----------
Book value
(GAAP) $ 8.36 $ 8.85 $ 13.87 $ 14.70 $ 16.95
========== ========== ========== ========== ==========
Efficiency ratio
reconciliation
Operating
efficiency ratio 79.02% 69.15% 74.15% 75.15% 81.34%
Gain from
acquisition - - (9.82) - -
Noncash goodwill
impairment charge - 32.24 - 100.06 -
Severance costs - - - 4.14 -
---------- ---------- ---------- ---------- ----------
Efficiency
ratio (GAAP) 79.02% 101.39% 64.33% 179.35% 81.34%
========== ========== ========== ========== ==========
Average equity to
assets
reconciliation
Tangible common
equity to assets 7.37% 5.36% 5.77% 6.09% 6.21%
Effect of preferred
equity 2.16 2.19 2.19 2.15 .35
---------- ---------- ---------- ---------- ----------
Tangible equity
to assets 9.53 7.55 7.96 8.24 6.56
Effect of goodwill
and other
intangibles 2.41 2.72 2.75 3.32 3.48
---------- ---------- ---------- ---------- ----------
Equity to
assets (GAAP) 11.94% 10.27% 10.71% 11.56% 10.04%
========== ========== ========== ========== ==========
Actual tangible
common equity to
risk-weighted
assets
reconciliation
Tangible common
equity to
risk-weighted
assets 10.39% 10.67% 7.49% 8.03% 8.34%
Effect of other
comprehensive
income (.87) (.90) (.72) (1.00) (.91)
Effect of deferred
tax limitation (1.27) (.58) (.22) - -
Effect of trust
preferred .97 .92 .90 .89 .88
Effect of preferred
equity 3.19 3.04 2.99 2.96 2.90
---------- ---------- ---------- ---------- ----------
Tier I capital
ratio
(Regulatory) 12.41% 13.15% 10.44% 10.88% 11.21%
========== ========== ========== ========== ==========
Net charge-offs
reconciliation
Operating net
charge-offs $ 84,585 $ 90,491 $ 58,312 $ 43,281 $ 74,028
Fraud related
charge-offs - - - - -
---------- ---------- ---------- ---------- ----------
Net charge-offs
(GAAP) $ 84,585 $ 90,491 $ 58,312 $ 43,281 $ 74,028
========== ========== ========== ========== ==========
Net charge-offs to
average loans
reconciliation
Operating net
charge-offs to
average loans 6.37% 6.57% 4.18% 3.09% 5.09%
Effect of fraud
related charge
offs - - - - -
---------- ---------- ---------- ---------- ----------
Net charge-offs
to average
loans (GAAP) 6.37% 6.57% 4.18% 3.09% 5.09%
========== ========== ========== ========== ==========
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
(in thousands, For the Twelve
except per share Months Ended
data; taxable ------------------------------------------------------
equivalent) 2009 2008 2007 2006 2005
---------- ---------- ---------- ---------- ----------
Interest revenue
reconciliation
Interest revenue -
taxable equivalent $ 404,961 $ 466,969 $ 550,917 $ 446,695 $ 324,225
Taxable equivalent
adjustment (2,132) (2,261) (1,881) (1,868) (1,636)
---------- ---------- ---------- ---------- ----------
Interest
revenue (GAAP) $ 402,829 $ 464,708 $ 549,036 $ 444,827 $ 322,589
========== ========== ========== ========== ==========
Net interest
revenue
reconciliation
Net interest
revenue - taxable
equivalent $ 245,227 $ 238,704 $ 274,483 $ 237,880 $ 196,799
Taxable equivalent
adjustment (2,132) (2,261) (1,881) (1,868) (1,636)
---------- ---------- ---------- ---------- ----------
Net interest
revenue (GAAP) $ 243,095 $ 236,443 $ 272,602 $ 236,012 $ 195,163
========== ========== ========== ========== ==========
Provision for loan
losses
reconciliation
Operating provision
for loan losses $ 310,000 $ 184,000 $ 37,600 $ 14,600 $ 12,100
Special
fraud-related
provision for loan
losses - - 18,000 - -
---------- ---------- ---------- ---------- ----------
Provision for
loan losses
(GAAP) $ 310,000 $ 184,000 $ 55,600 $ 14,600 $ 12,100
========== ========== ========== ========== ==========
Fee revenue
reconciliation
Operating fee
revenue $ 58,788 $ 53,141 $ 62,651 $ 49,095 $ 46,148
Gain from
acquisition 11,390 - - - -
---------- ---------- ---------- ---------- ----------
Fee revenue
(GAAP) $ 70,178 $ 53,141 $ 62,651 $ 49,095 $ 46,148
========== ========== ========== ========== ==========
Total revenue
reconciliation
Total operating
revenue $ (5,985)$ 107,845 $ 299,534 $ 272,375 $ 230,847
Taxable equivalent
adjustment (2,132) (2,261) (1,881) (1,868) (1,636)
Gain from
acquisition 11,390 - - - -
Special
fraud-related
provision for loan
losses - - (18,000) - -
---------- ---------- ---------- ---------- ----------
Total revenue
(GAAP) $ 3,273 $ 105,584 $ 279,653 $ 270,507 $ 229,211
========== ========== ========== ========== ==========
Expense
reconciliation
Operating expense $ 224,055 $ 206,699 $ 190,061 $ 162,070 $ 140,808
Noncash goodwill
impairment charge 95,000 - - - -
Severance costs 2,898 - - - -
---------- ---------- ---------- ---------- ----------
Operating
expense (GAAP) $ 321,953 $ 206,699 $ 190,061 $ 162,070 $ 140,808
========== ========== ========== ========== ==========
(Loss) income
before taxes
reconciliation
Operating (loss)
income before
taxes $ (230,040)$ (98,854)$ 109,473 $ 110,305 $ 90,039
Taxable equivalent
adjustment (2,132) (2,261) (1,881) (1,868) (1,636)
Gain from
acquisition 11,390 - - - -
Noncash goodwill
impairment charge (95,000) - - - -
Severance costs (2,898) - - - -
Special
fraud-related
provision for loan
losses - - (18,000) - -
---------- ---------- ---------- ---------- ----------
(Loss) income
before taxes
(GAAP) $ (318,680)$ (101,115)$ 89,592 $ 108,437 $ 88,403
========== ========== ========== ========== ==========
Income tax
(benefit) expense
reconciliation
Operating income
tax (benefit)
expense $ (91,448)$ (35,404)$ 40,482 $ 41,490 $ 33,297
Taxable equivalent
adjustment (2,132) (2,261) (1,881) (1,868) (1,636)
Gain from
acquisition, tax
expense 4,328 - - - -
Severance costs,
tax benefit (1,101) - - - -
Special
fraud-related
provision for loan
losses - - (7,002) - -
---------- ---------- ---------- ---------- ----------
Income tax
(benefit)
expense (GAAP) $ (90,353)$ (37,665)$ 31,599 $ 39,622 $ 31,661
========== ========== ========== ========== ==========
(Loss) earnings per
common share
reconciliation
Operating (loss)
earnings per
common share $ (2.47)$ (1.35)$ 1.48 $ 1.66 $ 1.43
Gain from
acquisition .12 - - - -
Noncash goodwill
impairment charge (1.57) - - - -
Severance costs (.03) - - - -
Special
fraud-related
provision for loan
losses - - (.24) - -
---------- ---------- ---------- ---------- ----------
(Loss) earnings
per common
share (GAAP) $ (3.95)$ (1.35)$ 1.24 $ 1.66 $ 1.43
========== ========== ========== ========== ==========
Book value
reconciliation
Tangible book value $ 6.02 $ 10.39 $ 10.94 $ 10.57 $ 8.94
Effect of goodwill
and other
intangibles 2.34 6.56 6.79 3.80 2.86
---------- ---------- ---------- ---------- ----------
Book value
(GAAP) $ 8.36 $ 16.95 $ 17.73 $ 14.37 $ 11.80
========== ========== ========== ========== ==========
Efficiency ratio
reconciliation
Operating
efficiency ratio 74.37% 70.49% 56.53% 56.35% 57.77%
Gain from
acquisition (2.71) - - - -
Noncash goodwill
impairment charge 30.39 - - - -
Severance costs .93 - - - -
---------- ---------- ---------- ---------- ----------
Efficiency
ratio (GAAP) 102.98% 70.49% 56.53% 56.35% 57.77%
========== ========== ========== ========== ==========
Average equity to
assets
reconciliation
Tangible common
equity to assets 6.15% 6.57% 6.63% 6.32% 5.64%
Effect of preferred
equity 2.18 .10 - - -
---------- ---------- ---------- ---------- ----------
Tangible equity
to assets 8.33 6.67 6.63 6.32 5.64
Effect of goodwill
and other
intangibles 2.79 3.55 2.98 1.74 1.99
---------- ---------- ---------- ---------- ----------
Equity to
assets (GAAP) 11.12% 10.22% 9.61% 8.06% 7.63%
========== ========== ========== ========== ==========
Actual tangible
common equity to
risk-weighted
assets
reconciliation
Tangible common
equity to
risk-weighted
assets 10.39% 8.34% 8.21% 8.09% 7.75%
Effect of other
comprehensive
income (.87) (.91) (.23) .07 .23
Effect of deferred
tax limitation (1.27) - - - -
Effect of trust
preferred .97 .88 .65 .81 .89
Effect of preferred
equity 3.19 2.90 - .01 .01
---------- ---------- ---------- ---------- ----------
Tier I capital
ratio
(Regulatory) 12.41% 11.21% 8.63% 8.98% 8.88%
========== ========== ========== ========== ==========
Net charge-offs
reconciliation
Operating net
charge-offs $ 276,669 $ 151,152 $ 21,834 $ 5,524 $ 5,701
Fraud related
charge-offs - - 18,000 - -
---------- ---------- ---------- ---------- ----------
Net charge-offs
(GAAP) $ 276,669 $ 151,152 $ 39,834 $ 5,524 $ 5,701
========== ========== ========== ========== ==========
Net charge-offs to
average loans
reconciliation
Operating net
charge-offs to
average loans 5.03% 2.57% .38% .12% .14%
Effect of fraud
related charge
offs - - .31 - -
---------- ---------- ---------- ---------- ----------
Net charge-offs
to average
loans (GAAP) 5.03% 2.57% .69% .12% .14%
========== ========== ========== ========== ==========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2009 2008
---------------------------------------------- ----------
Fourth Third Second First Fourth
(in millions) Quarter (1) Quarter (1) Quarter (1) Quarter Quarter
----------- ----------- ----------- ---------- ----------
LOANS BY CATEGORY
Commercial (sec.
by RE) $ 1,779 $ 1,787 $ 1,797 $ 1,779 $ 1,627
Commercial
construction 363 380 379 377 500
Commercial &
industrial 390 403 399 387 410
----------- ----------- ----------- ---------- ----------
Total
commercial 2,532 2,570 2,575 2,543 2,537
Residential
construction 1,050 1,185 1,315 1,430 1,479
Residential
mortgage 1,427 1,461 1,470 1,504 1,526
Consumer /
installment 142 147 153 156 163
----------- ----------- ----------- ---------- ----------
Total loans $ 5,151 $ 5,363 $ 5,513 $ 5,633 $ 5,705
=========== =========== =========== ========== ==========
LOANS BY MARKET
Atlanta MSA $ 1,435 $ 1,526 $ 1,605 $ 1,660 $ 1,706
Gainesville MSA 390 402 413 422 420
North Georgia 1,884 1,942 1,978 2,014 2,040
Western North
Carolina 772 786 794 808 810
Coastal Georgia 405 440 455 460 464
East Tennessee 265 267 268 269 265
----------- ----------- ----------- ---------- ----------
Total loans $ 5,151 $ 5,363 $ 5,513 $ 5,633 $ 5,705
=========== =========== =========== ========== ==========
RESIDENTIAL
CONSTRUCTION
Dirt loans
Acquisition &
development $ 332 $ 380 $ 413 $ 445 $ 484
Land loans 127 159 159 155 153
Lot loans 336 336 369 390 358
----------- ----------- ----------- ---------- ----------
Total 795 875 941 990 995
----------- ----------- ----------- ---------- ----------
House loans
Spec 178 218 268 317 347
Sold 77 92 106 123 137
----------- ----------- ----------- ---------- ----------
Total 255 310 374 440 484
----------- ----------- ----------- ---------- ----------
Total residential
construction $ 1,050 $ 1,185 $ 1,315 $ 1,430 $ 1,479
=========== =========== =========== ========== ==========
RESIDENTIAL
CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition &
development $ 76 $ 100 $ 124 $ 148 $ 167
Land loans 43 61 63 52 56
Lot loans 52 54 81 98 86
----------- ----------- ----------- ---------- ----------
Total 171 215 268 298 309
----------- ----------- ----------- ---------- ----------
House loans
Spec 68 91 127 164 189
Sold 16 22 29 33 40
----------- ----------- ----------- ---------- ----------
Total 84 113 156 197 229
----------- ----------- ----------- ---------- ----------
Total residential
construction $ 255 $ 328 $ 424 $ 495 $ 538
=========== =========== =========== ========== ==========
(1) Excludes total loans of $85.1 million, $104.0 million and $109.9
million as of December 31, 2009, 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
Year
Linked over
Quarter Year
2009 2008 Change (2) Change
----------------------- ---------- ---------- --------
Fourth Third Fourth
(in millions) Quarter (1) Quarter (1) Quarter Actual Actual
----------- ----------- ---------- ---------- --------
LOANS BY
CATEGORY
Commercial (sec.
by RE) $ 1,779 $ 1,787 $ 1,627 (2)% 9 %
Commercial
construction 363 380 500 (18) (27)
Commercial &
industrial 390 403 410 (13) (5)
----------- ----------- ----------
Total
commercial 2,532 2,570 2,537 (6) -
Residential
construction 1,050 1,185 1,479 (46) (29)
Residential
mortgage 1,427 1,461 1,526 (9) (6)
Consumer /
installment 142 147 163 (14) (13)
----------- ----------- ----------
Total loans $ 5,151 $ 5,363 $ 5,705 (16) (10)
=========== =========== ==========
LOANS BY MARKET
Atlanta MSA $ 1,435 $ 1,526 $ 1,706 (24)% (16)%
Gainesville MSA 390 402 420 (12) (7)
North Georgia 1,884 1,942 2,040 (12) (8)
Western North
Carolina 772 786 810 (7) (5)
Coastal Georgia 405 440 464 (32) (13)
East Tennessee 265 267 265 (3) -
----------- ----------- ----------
Total loans $ 5,151 $ 5,363 $ 5,705 (16) (10)
=========== =========== ==========
RESIDENTIAL
CONSTRUCTION
Dirt loans
Acquisition &
development $ 332 $ 380 $ 484 (51)% (31)%
Land loans 127 159 153 (81) (17)
Lot loans 336 336 358 - (6)
----------- ----------- ----------
Total 795 875 995 (37) (20)
----------- ----------- ----------
House loans
Spec 178 218 347 (73)% (49)%
Sold 77 92 137 (65) (44)
----------- ----------- ----------
Total 255 310 484 (71) (47)
----------- ----------- ----------
Total
residential
construction $ 1,050 $ 1,185 $ 1,479 (46) (29)
=========== =========== ==========
RESIDENTIAL
CONSTRUCTION -
ATLANTA MSA
Dirt loans
Acquisition &
development $ 76 $ 100 $ 167 (96)% (54)%
Land loans 43 61 56 (118) (23)
Lot loans 52 54 86 (15) (40)
----------- ----------- ----------
Total 171 215 309 (82) (45)
----------- ----------- ----------
House loans
Spec 68 91 189 (101)% (64)%
Sold 16 22 40 (109) (60)
----------- ----------- ----------
Total 84 113 229 (103) (63)
----------- ----------- ----------
Total
residential
construction $ 255 $ 328 $ 538 (89) (53)
=========== =========== ==========
(1) Excludes total loans of $85.1 million, $104.0 million and $109.9
million as of December 31, 2009, 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 Year-End
(in millions) 2009 2008 2007
----------- ----------- -----------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,779 $ 1,627 $ 1,476
Commercial construction 363 500 527
Commercial & industrial 390 410 418
----------- ----------- -----------
Total commercial 2,532 2,537 2,421
Residential construction 1,050 1,479 1,829
Residential mortgage 1,427 1,526 1,502
Consumer / installment 142 163 177
----------- ----------- -----------
Total loans $ 5,151 $ 5,705 $ 5,929
=========== =========== ===========
LOANS BY MARKET
Atlanta MSA $ 1,435 $ 1,706 $ 2,002
Gainesville MSA 390 420 399
North Georgia 1,884 2,040 2,060
Western North Carolina 772 810 806
Coastal Georgia 405 464 416
East Tennessee 265 265 246
----------- ----------- -----------
Total loans $ 5,151 $ 5,705 $ 5,929
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions) 2006 2005 2004
----------- ----------- -----------
LOANS BY CATEGORY
Commercial (sec. by RE) $ 1,230 $ 1,055 $ 967
Commercial construction 469 359 249
Commercial & industrial 296 237 212
----------- ----------- -----------
Total commercial 1,995 1,651 1,428
Residential construction 1,864 1,380 1,055
Residential mortgage 1,338 1,206 1,102
Consumer / installment 180 161 150
----------- ----------- -----------
Total loans $ 5,377 $ 4,398 $ 3,735
=========== =========== ===========
LOANS BY MARKET
Atlanta MSA $ 1,651 $ 1,207 $ 1,061
Gainesville MSA 354 249 -
North Georgia 2,034 1,790 1,627
Western North Carolina 773 668 633
Coastal Georgia 358 306 274
East Tennessee 207 178 140
----------- ----------- -----------
Total loans $ 5,377 $ 4,398 $ 3,735
=========== =========== ===========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter 2009
----------------------------------------
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
-------------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec. by RE) $ 37,040 $ 15,842 $ 52,882
Commercial construction 19,976 9,761 29,737
Commercial & industrial 3,946 - 3,946
-------------- ----------- -----------
Total commercial 60,962 25,603 86,565
Residential construction 142,332 76,519 218,851
Residential mortgage 58,767 18,648 77,415
Consumer / installment 2,031 - 2,031
-------------- ----------- -----------
Total NPAs $ 264,092 $ 120,770 $ 384,862
============== =========== ===========
NPAs BY MARKET
Atlanta MSA $ 106,536 $ 41,125 $ 147,661
Gainesville MSA 5,074 2,614 7,688
North Georgia 87,598 53,072 140,670
Western North Carolina 29,610 5,096 34,706
Coastal Georgia 26,871 17,150 44,021
East Tennessee 8,403 1,713 10,116
-------------- ----------- -----------
Total NPAs $ 264,092 $ 120,770 $ 384,862
============== =========== ===========
NPA ACTIVITY
Beginning Balance $ 304,381 $ 110,610 $ 414,991
Loans placed on non-accrual 174,898 - 174,898
Payments received (26,935) - (26,935)
Loan charge-offs (88,427) - (88,427)
Foreclosures (79,983) 79,983 -
Capitalized costs - 981 981
Note / property sales (19,842) (61,228) (81,070)
Write downs - (2,209) (2,209)
Net gains (losses) on sales - (7,367) (7,367)
-------------- ----------- -----------
Ending Balance $ 264,092 $ 120,770 $ 384,862
============== =========== ===========
(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.
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
============== ============ =========
NPA ACTIVITY
Beginning Balance $ 287,848 $ 104,754 $ 392,602
Loans placed on non-accrual 190,164 - 190,164
Payments received (16,597) - (16,597)
Loan charge-offs (92,359) - (92,359)
Foreclosures (56,624) 56,624 -
Capitalized costs - 579 579
Note / property sales (8,051) (47,240) (55,291)
Write downs - (1,906) (1,906)
Net gains (losses) on sales - (2,201) (2,201)
-------------- ------------ ---------
Ending Balance $ 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.
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
============== ============ =========
NPA ACTIVITY
Beginning Balance $ 259,155 $ 75,383 $ 334,538
Loans placed on non-accrual 169,351 - 169,351
Payments received (15,597) - (15,597)
Loan charge-offs (60,644) - (60,644)
Foreclosures (64,417) 64,417 -
Capitalized costs - 1,324 1,324
Note / property sales - (33,752) (33,752)
Write downs - (2,738) (2,738)
Net gains (losses) on sales - 120 120
-------------- ------------ ---------
Ending Balance $ 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.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter Third Quarter Second Quarter
2009 2009 2009
----------------- ----------------- -----------------
Net Net Net
Charge- Charge- Charge-
Offs to Offs to Offs to
Net Average Net Average Net Average
Charge- Loans Charge- Loans Charge- Loans
(in thousands) Offs (2) Offs (2) Offs (2)
-------- ------- -------- ------- -------- -------
NET CHARGE-OFFS BY
CATEGORY
Commercial (sec. by
RE) $ 3,896 .86% $ 10,568 2.33% $ 5,986 1.34%
Commercial
construction 4,717 5.03 4,369 4.55 756 .80
Commercial &
industrial 153 .15 1,792 1.76 3,107 3.16
-------- -------- --------
Total commercial 8,766 1.36 16,729 2.57 9,849 1.54
Residential
construction 67,393 23.87 67,520 21.31 44,240 12.90
Residential mortgage 7,026 1.93 5,051 1.36 3,526 .95
Consumer /
installment 1,400 3.83 1,191 3.13 697 1.80
-------- -------- --------
Total $ 84,585 6.37 $ 90,491 6.57 $ 58,312 4.18
======== ======== ========
NET CHARGE-OFFS BY
MARKET
Atlanta MSA $ 43,595 12.07% $ 50,129 12.61% $ 37,473 8.89%
Gainesville MSA 2,273 2.49 1,473 1.60 4,125 4.38
North Georgia 18,057 3.57 24,017 4.74 12,571 2.52
Western North
Carolina 10,091 5.11 3,949 1.98 1,015 .51
Coastal Georgia 8,109 7.72 10,051 8.78 969 .85
East Tennessee 2,460 3.67 872 1.30 2,159 3.21
-------- -------- --------
Total $ 84,585 6.37 $ 90,491 6.57 $ 58,312 4.18
======== ======== ========
(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
December 31,
--------------------
(in thousands, except per share data) 2009 2008
--------- ---------
Interest revenue:
Loans, including fees $ 78,064 $ 86,409
Investment securities, including tax exempt of $366
and $324 17,313 18,964
Federal funds sold, commercial paper, deposits in
banks and other 1,503 2,508
--------- ---------
Total interest revenue 96,880 107,881
--------- ---------
Interest expense:
Deposits:
NOW 2,315 6,045
Money market 2,328 3,124
Savings 105 204
Time 24,026 41,512
--------- ---------
Total deposit interest expense 28,774 50,885
Federal funds purchased, repurchase agreements
and other short-term borrowings 1,081 445
Federal Home Loan Bank advances 1,045 2,358
Long-term debt 2,652 2,873
--------- ---------
Total interest expense 33,552 56,561
--------- ---------
Net interest revenue 63,328 51,320
Provision for loan losses 90,000 85,000
--------- ---------
Net interest revenue after provision for loan
losses (26,672) (33,680)
--------- ---------
Fee revenue:
Service charges and fees 8,257 7,742
Mortgage loan and other related fees 1,651 1,528
Consulting fees 2,774 1,260
Brokerage fees 443 645
Securities gains, net 2,015 838
Gain from acquisition - -
Losses on prepayment of borrowings - (2,714)
Other 2,081 1,419
--------- ---------
Total fee revenue 17,221 10,718
--------- ---------
Total revenue (9,451) (22,962)
--------- ---------
Operating expenses:
Salaries and employee benefits 26,189 24,441
Communications and equipment 3,932 3,897
Occupancy 4,038 3,663
Advertising and public relations 1,033 1,358
Postage, printing and supplies 1,315 1,763
Professional fees 2,571 2,313
Foreclosed property 14,391 5,238
FDIC assessments and other regulatory charges 3,711 1,980
Amortization of intangibles 813 745
Other 4,539 7,041
Goodwill impairment - -
Severance costs - -
--------- ---------
Total operating expenses 62,532 52,439
--------- ---------
Loss before income taxes (71,983) (75,401)
Income tax benefit (32,148) (28,654)
--------- ---------
Net loss (39,835) (46,747)
Preferred stock dividends, including discount
accretion 2,567 712
--------- ---------
Net loss available to common shareholders $ (42,402) $ (47,459)
========= =========
Basic loss per common share $ (.45) $ (.99)
Diluted loss per common share (.45) (.99)
Weighted average common shares outstanding - Basic 94,219 47,844
Weighted average common shares outstanding - Diluted 94,219 47,844
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Twelve Months Ended
December 31,
----------------------
(in thousands, except per share data) 2009 2008
---------- ----------
Interest revenue:
Loans, including fees $ 322,509 $ 385,959
Investment securities, including tax exempt of
$1,322 and $1,464 77,370 75,869
Federal funds sold, commercial paper, deposits in
banks and other 2,950 2,880
---------- ----------
Total interest revenue 402,829 464,708
---------- ----------
Interest expense:
Deposits:
NOW 11,023 28,626
Money market 9,545 10,643
Savings 483 764
Time 120,326 158,268
---------- ----------
Total deposit interest expense 141,377 198,301
Federal funds purchased, repurchase agreements
and other short-term borrowings 2,842 7,699
Federal Home Loan Bank advances 4,622 13,026
Long-term debt 10,893 9,239
---------- ----------
Total interest expense 159,734 228,265
---------- ----------
Net interest revenue 243,095 236,443
Provision for loan losses 310,000 184,000
---------- ----------
Net interest revenue after provision for loan
losses (66,905) 52,443
---------- ----------
Fee revenue:
Service charges and fees 30,986 31,683
Mortgage loan and other related fees 8,959 7,103
Consulting fees 7,822 7,046
Brokerage fees 2,085 3,457
Securities gains, net 2,756 1,315
Gain from acquisition 11,390 -
Losses on prepayment of borrowings - (2,714)
Other 6,180 5,251
---------- ----------
Total fee revenue 70,178 53,141
---------- ----------
Total revenue 3,273 105,584
---------- ----------
Operating expenses:
Salaries and employee benefits 108,967 110,574
Communications and equipment 15,038 15,490
Occupancy 15,796 14,988
Advertising and public relations 4,220 6,117
Postage, printing and supplies 5,068 6,296
Professional fees 9,925 7,509
Foreclosed property 32,365 19,110
FDIC assessments and other regulatory charges 16,004 6,020
Amortization of intangibles 3,104 3,009
Other 13,568 17,586
Goodwill impairment 95,000 -
Severance costs 2,898 -
---------- ----------
Total operating expenses 321,953 206,699
---------- ----------
Loss before income taxes (318,680) (101,115)
Income tax benefit (90,353) (37,665)
---------- ----------
Net loss (228,327) (63,450)
Preferred stock dividends, including discount
accretion 10,242 724
---------- ----------
Net loss available to common shareholders $ (238,569) $ (64,174)
========== ==========
Basic loss per common share $ (3.95) $ (1.35)
Diluted loss per common share (3.95) (1.35)
Weighted average common shares outstanding -
Basic 60,374 47,369
Weighted average common shares outstanding -
Diluted 60,374 47,369
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
December 31, December 31,
(in thousands, except share and per share data) 2009 2008
------------ -----------
(unaudited) (audited)
ASSETS
Cash and due from banks $ 126,265 $ 116,395
Interest-bearing deposits in banks 120,382 8,417
Federal funds sold, commercial paper and
short-term investments 129,720 368,609
------------ -----------
Cash and cash equivalents 376,367 493,421
Securities available for sale 1,530,047 1,617,187
Mortgage loans held for sale 30,226 20,334
Loans, net of unearned income 5,151,476 5,704,861
Less allowance for loan losses 155,602 122,271
------------ -----------
Loans, net 4,995,874 5,582,590
Acquired assets covered by loss sharing
agreements with the FDIC 185,938 -
Premises and equipment, net 182,038 179,160
Accrued interest receivable 33,867 46,088
Goodwill and other intangible assets 225,196 321,798
Other assets 440,361 331,355
------------ -----------
Total assets $ 7,999,914 $ 8,591,933
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 707,826 $ 654,036
NOW 1,335,790 1,543,385
Money market 713,901 466,750
Savings 177,427 170,275
Time:
Less than $100,000 1,746,511 1,953,235
Greater than $100,000 1,187,499 1,422,974
Brokered 758,880 792,969
------------ -----------
Total deposits 6,627,834 7,003,624
Federal funds purchased, repurchase
agreements, and other short-term borrowings 101,389 108,411
Federal Home Loan Bank advances 114,501 235,321
Long-term debt 150,066 150,986
Accrued expenses and other liabilities 43,803 104,209
------------ -----------
Total liabilities 7,037,593 7,602,551
------------ -----------
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000
shares authorized;
Series A; $10 stated value; 21,700 and
25,800 shares issued and outstanding 217 258
Series B; $1,000 stated value; 180,000
shares issued and outstanding 174,408 173,180
Common stock, $1 par value; 100,000,000
shares authorized; 94,045,603 and
48,809,301 shares issued 94,046 48,809
Common stock issuable; 221,906 and 129,304
shares 3,597 2,908
Capital surplus 622,034 460,708
Retained earnings 20,384 265,405
Treasury stock; 799,892 shares, at cost - (16,465)
Accumulated other comprehensive income 47,635 54,579
------------ -----------
Total shareholders' equity 962,321 989,382
------------ -----------
Total liabilities and shareholders'
equity $ 7,999,914 $ 8,591,933
============ ===========
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
2009
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,357,150 $ 78,088 5.78%
Taxable securities (3) 1,496,251 16,947 4.53
Tax-exempt securities (1)(3) 32,554 599 7.36
Federal funds sold and other
interest-earning assets 600,835 1,847 1.23
----------- ------------
Total interest-earning assets 7,486,790 97,481 5.17
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (162,203)
Cash and due from banks 107,153
Premises and equipment 182,790
Other assets (3) 672,014
-----------
Total assets $ 8,286,544
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,334,578 $ 2,315 .69
Money market 726,680 2,328 1.27
Savings 178,191 105 .23
Time less than $100,000 1,812,823 10,952 2.40
Time greater than $100,000 1,215,579 8,074 2.64
Brokered 844,462 5,000 2.35
----------- ------------
Total interest-bearing
deposits 6,112,313 28,774 1.87
----------- ------------
Federal funds purchased and other
borrowings 105,130 1,081 4.08
Federal Home Loan Bank advances 156,979 1,045 2.64
Long-term debt 150,060 2,652 7.01
----------- ------------
Total borrowed funds 412,169 4,778 4.60
----------- ------------
Total interest-bearing
liabilities 6,524,482 33,552 2.04
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 722,739
Other liabilities 50,044
-----------
Total liabilities 7,297,265
Shareholders' equity 989,279
-----------
Total liabilities and
shareholders' equity $ 8,286,544
===========
Net interest revenue $ 63,929
============
Net interest-rate spread 3.13%
===========
Net interest margin (4) 3.40%
===========
(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 $22.1 million in 2009 and pretax unrealized losses
of $3.6 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 December 31,
2008
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,784,139 $ 86,530 5.95%
Taxable securities (3) 1,478,427 18,640 5.04
Tax-exempt securities (1)(3) 30,381 530 6.98
Federal funds sold and other
interest-earning assets 369,589 2,734 2.96
----------- ------------
Total interest-earning assets 7,662,536 108,434 5.64
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (109,956)
Cash and due from banks 116,463
Premises and equipment 179,807
Other assets (3) 638,167
-----------
Total assets $ 8,487,017
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,534,370 $ 6,045 1.57
Money market 424,940 3,124 2.92
Savings 174,186 204 .47
Time less than $100,000 1,916,811 18,524 3.84
Time greater than $100,000 1,448,818 14,558 4.00
Brokered 818,100 8,430 4.10
----------- ------------
Total interest-bearing
deposits 6,317,225 50,885 3.20
----------- ------------
Federal funds purchased and other
borrowings 109,712 445 1.61
Federal Home Loan Bank advances 284,860 2,358 3.29
Long-term debt 146,746 2,873 7.79
----------- ------------
Total borrowed funds 541,318 5,676 4.17
----------- ------------
Total interest-bearing
liabilities 6,858,543 56,561 3.28
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 665,004
Other liabilities 111,514
-----------
Total liabilities 7,635,061
Shareholders' equity 851,956
-----------
Total liabilities and
shareholders' equity $ 8,487,017
===========
Net interest revenue $ 51,873
============
Net interest-rate spread 2.36%
===========
Net interest margin (4) 2.70%
===========
(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 $22.1 million in 2009 and pretax unrealized losses
of $3.6 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 Twelve Months Ended December 31,
2009
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned
income (1)(2) $ 5,547,915 $ 322,284 5.81%
Taxable securities (3) 1,626,032 76,048 4.68
Tax-exempt securities (1)(3) 30,460 2,164 7.10
Federal funds sold and other
interest-earning assets 260,232 4,465 1.72
----------- ------------
Total interest-earning assets 7,464,639 404,961 5.43
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (146,535)
Cash and due from banks 105,127
Premises and equipment 180,381
Other assets (3) 665,775
-----------
Total assets $ 8,269,387
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,297,139 $ 11,023 .85
Money market 589,389 9,545 1.62
Savings 177,410 483 .27
Time less than $100,000 1,891,774 56,811 3.00
Time greater than $100,000 1,306,302 42,518 3.25
Brokered 756,122 20,997 2.78
----------- ------------
Total interest-bearing
deposits 6,018,136 141,377 2.35
----------- ------------
Federal funds purchased and other
borrowings 177,589 2,842 1.60
Federal Home Loan Bank advances 220,468 4,622 2.10
Long-term debt 150,604 10,893 7.23
----------- ------------
Total borrowed funds 548,661 18,357 3.35
----------- ------------
Total interest-bearing
liabilities 6,566,797 159,734 2.43
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 694,469
Other liabilities 88,490
-----------
Total liabilities 7,349,756
Shareholders' equity 919,631
-----------
Total liabilities and
shareholders' equity $ 8,269,387
===========
Net interest revenue $ 245,227
============
Net interest-rate spread 3.00%
===========
Net interest margin (4) 3.29%
===========
(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 $15.3 million in 2009 and $3.3 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 Twelve Months Ended December 31,
2008
----------- ------------ -----------
(dollars in thousands, taxable Average Avg.
equivalent) Balance Interest Rate
----------- ------------ -----------
Assets:
Interest-earning assets:
Loans, net of unearned income
(1)(2) $ 5,890,889 $ 386,132 6.55%
Taxable securities (3) 1,455,206 74,405 5.11
Tax-exempt securities (1)(3) 33,830 2,406 7.11
Federal funds sold and other
interest-earning assets 124,261 4,026 3.24
----------- ------------
Total interest-earning assets 7,504,186 466,969 6.22
----------- ------------
Non-interest-earning assets:
Allowance for loan losses (97,385)
Cash and due from banks 131,778
Premises and equipment 180,857
Other assets (3) 599,765
-----------
Total assets $ 8,319,201
===========
Liabilities and Shareholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,491,419 $ 28,626 1.92
Money market 426,988 10,643 2.49
Savings 182,067 764 .42
Time less than $100,000 1,724,036 71,844 4.17
Time greater than $100,000 1,457,397 62,888 4.32
Brokered 565,111 23,536 4.16
----------- ------------
Total interest-bearing
deposits 5,847,018 198,301 3.39
----------- ------------
Federal funds purchased and other
borrowings 324,634 7,699 2.37
Federal Home Loan Bank advances 410,605 13,026 3.17
Long-term debt 120,442 9,239 7.67
----------- ------------
Total borrowed funds 855,681 29,964 3.50
----------- ------------
Total interest-bearing
liabilities 6,702,699 228,265 3.41
------------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 677,439
Other liabilities 88,637
-----------
Total liabilities 7,468,775
Shareholders' equity 850,426
-----------
Total liabilities and
shareholders' equity $ 8,319,201
===========
Net interest revenue $ 238,704
============
Net interest-rate spread 2.81%
===========
Net interest margin (4) 3.18%
===========
(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 $15.3 million in 2009 and $3.3 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=69975BE691705BA3
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