Exhibit 99.1
![(UNITED COMMUNITY BANKS INC. LOGO)](https://capedge.com/proxy/8-K/0000950123-10-067519/c03710p0371001.jpg)
For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
NET OPERATING LOSS FOR SECOND QUARTER 2010
NET OPERATING LOSS FOR SECOND QUARTER 2010
• | Completed sale of $103 million of nonperforming assets that resulted in a non-cash charge of $45.3 million |
• | Nonperforming assets decline 17 percent from last quarter |
• | Provision for loan losses was $61.5 million, down $13.5 million from last quarter |
• | Allowance-to-loans ratio increases to 3.57 percent |
• | Margin improves 11 basis points to 3.60 percent |
BLAIRSVILLE, GA — July 23, 2010 — United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $59.5 million, or 66 cents per diluted share, for the second quarter of 2010. The second quarter operating loss included a non-cash charge of $45.3 million, or $30.0 million after-tax, resulting from the transaction with Fletcher International (“Fletcher”) to dispose of nonperforming assets. The charge increased the net loss for the quarter by 32 cents per diluted share.
United’s net operating losses from continuing operations for the first six months of 2010 and 2009 were $94.0 million, or $1.05 per diluted share, and $55.3 million, or $1.24 per diluted share, respectively. In the attached schedules, the results of operations for all periods presented have been restated to show earnings from continuing operations, which excludes Brintech’s fee revenue and operating expenses during the periods it was owned by United and the gain from the sale. The net income or loss from Brintech’s discontinued operations is reported as a separate line in the consolidated statement of
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income. Also, the net operating loss from continuing operations for the first six months of 2009 excludes a $70 million non-cash charge for impairment of goodwill and $1.8 million in severance costs, net of taxes, relating to a reduction in work force, both of which were incurred during the first quarter and the $7.1 million gain, net of taxes, on the acquisition of Southern Community Bank in the second quarter. These charges and gains were considered non-recurring items and therefore were excluded from operating earnings. Including these non-recurring items, United’s net loss for the first six months of 2010 and 2009 was $92.8 million, or $1.04 per diluted share, and $119.8 million, or $2.57 per diluted share, respectively.
“We made steady progress during the second quarter,” stated Jimmy Tallent, president and chief executive officer. “We completed the sale of $103 million of our most illiquid non-performing loans and foreclosed properties with the granting of a warrant and an option to purchase capital. This transaction was a giant step forward in clearing our books of the more difficult problem assets while at the same time preserving capital. We still see credit challenges ahead of us and elevated levels of charge-offs through the balance of 2010. We are pursuing every opportunity to resolve them in the best interests of our shareholders and return to profitability in early 2011.”
Total loans were $4.9 billion at quarter-end, down $119 million from the end of the first quarter and $640 million from a year earlier. As of quarter-end, residential construction loans were $820 million, or 17 percent of total loans, down $140 million from the prior quarter-end and down $495 million from a year ago. This decline was net of new lending during the quarter that totaled $101 million, primarily commercial and small business loans in metropolitan Atlanta and north Georgia.
Taxable equivalent net interest revenue of $61.6 million was $745,000 higher than the second quarter of 2009. The net interest margin was 3.60 percent for the second quarter 2010, up 32 basis points from a year ago and up 11 basis points from the first quarter. “By staying focused on deposit and loan pricing, we’ve been able to steadily increase our net interest margin and hold net interest revenue above $60 million despite continuing attrition in the loan portfolio,” Tallent said.
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“We had our sixth consecutive quarter of core transaction deposit growth, with an increase of $94 million from the first quarter, or 16 percent, on an annualized basis,” Tallent continued. “That compares to core deposit growth of $53 million for the first quarter of 2010 and $224 million from a year ago. We believe this growth is related to disruption in the banking industry and the favorable perception of United as a strong bank with strong service. We are emphasizing these positive attributes, which are always valuable and especially so during difficult times in our industry. We believe this message is being heard and responded to with our successful core deposit program.”
The second quarter 2010 provision for loan losses decreased to $61.5 million from $75 million in the first quarter. Net charge-offs were up $4.7 million from first quarter 2010 and $3.0 million from the second quarter of 2009. Non-performing assets decreased to $348 million at quarter-end from $417 million at March 31, 2010, the lowest level since the first quarter of 2009. The ratios of non-performing assets to total assets at the end of the second and first quarters of 2010 were 4.55 percent and 5.32 percent, respectively. The decrease in non-performing assets and improvement in the ratio of non-performing assets to total assets reflected the sale of $103 million of nonperforming assets early in the second quarter.
The transaction with Fletcher resulted in an after-tax charge of $30.0 million, or $45.3 million pre-tax, primarily due to the recognition of the value of warrant and the option to purchase convertible preferred stock that were granted as part of the sale of the non-performing assets. United recorded the equity instruments at a fair value of $39.8 million that resulted in an increase to capital surplus within shareholders’ equity, which more than offset the $30 million after-tax charge to expenses.
“Even though this transaction resulted in a higher net loss for the quarter, the importance of the strategic objective achieved was very significant,” stated Tallent. “We likely would have carried these illiquid nonperforming assets for many quarters and incurred considerable foreclosure and carrying costs.”
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Operating fee revenue was $11.6 million for the second quarter of 2010, compared to $11.3 million a year ago. Service charges and fees of $8.0 million were up $436,000, due primarily to new accounts and an increase in ATM and debit card transactions. Mortgage loan fees of $1.6 million were down $1.2 million due to lower refinancing activities. Other fee revenue increased $262,000 to $1.4 million, due primarily to the gain recognized on ineffectiveness of terminated cash flow hedges on a certain portion of United’s prime-based loans.
Second quarter operating expenses of $58.3 million, excluding the $45.3 million charge for the sale the non-performing assets, increased $4.6 million compared to last year. Foreclosed property costs more than doubled to $14.5 million compared to $5.7 million in the second quarter of 2009. Foreclosed property costs in the second quarter of 2010 included $3.3 million for maintenance, property taxes and other related costs, compared to $2.5 million last year. In addition, write-downs relating to the sale of properties totaled $5.1 million and write-downs of other foreclosed properties totaled $6.1 million, both to help expedite sales of foreclosed properties. Salary and benefit costs totaled $23.6 million, a decrease of $2.7 million from last year due primarily to the 10 percent reduction in workforce in 2009.
“We continued to focus on reducing expenses, and most controllable costs were flat or down compared to a year ago,” commented Tallent. “Last year included the FDIC industry-wide assessment that cost us $3.8 million and a recovery in other expenses of $2.0 million for the reversal of bank owned life insurance surrender charges.”
Excluding the tax effect of the charge from the transaction with Fletcher and a $1.3 million increase in the valuation allowance for deferred tax assets, the effective tax rate for the second quarter of 2010 was 40 percent, which was consistent with the prior quarter. The effective tax rate for the remainder of 2010 is expected to be 40 percent, slightly higher than the effective tax rate for the full year 2009.
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As of June 30, 2010, United’s capital ratios were as follows: Tier I Risk Based Capital of 11.1 percent; Leverage of 7.7 percent; and, Total Risk Based Capital of 13.8 percent. The quarterly average tangible equity-to-assets ratio was 9.3 percent and the tangible common equity-to-assets ratio was 6.9 percent.
“We are not where we want to be yet and the economy continues to be stubborn, but we are making important progress,” Tallent said. “Aside from the non-cash loss on the sale of nonperforming assets this quarter, our net operating loss from continuing operations has declined for three consecutive quarters. Residential construction loans, where most of the problems have been, have decreased from a high of 35 percent to 17 percent of total loans at quarter end. We have widened our net interest margin by growing core deposits for six consecutive quarters and obtaining more favorable loan and time deposit pricing. All the while, our customer satisfaction scores lead the industry.”
Conference Call
United Community Banks will hold a conference call today, Friday, July 23, 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 (877) 380-5665 and use the password ‘85745611.’ 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.
United Community Banks will hold a conference call today, Friday, July 23, 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 (877) 380-5665 and use the password ‘85745611.’ 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.
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 $7.7 billion and operates 27 community banks with 106 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.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.7 billion and operates 27 community banks with 106 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.
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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.
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.
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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
Financial Highlights
Selected Financial Information
Second | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | Quarter | For the Six | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Second | First | Fourth | Third | Second | 2010-2009 | Months Ended | 2010-2009 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2010 | 2009 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 87,699 | $ | 89,849 | $ | 97,481 | $ | 101,181 | $ | 102,737 | $ | 177,548 | $ | 206,299 | ||||||||||||||||||||||
Interest expense | 26,072 | 28,570 | 33,552 | 38,177 | 41,855 | 54,642 | 88,005 | |||||||||||||||||||||||||||||
Net interest revenue | 61,627 | 61,279 | 63,929 | 63,004 | 60,882 | 1 | % | 122,906 | 118,294 | 4 | % | |||||||||||||||||||||||||
Provision for loan losses | 61,500 | 75,000 | 90,000 | 95,000 | 60,000 | 136,500 | 125,000 | |||||||||||||||||||||||||||||
Operating fee revenue (1) | 11,579 | 11,666 | 14,447 | 13,389 | 11,305 | 2 | 23,245 | 23,128 | 1 | |||||||||||||||||||||||||||
Total operating revenue(1) | 11,706 | (2,055 | ) | (11,624 | ) | (18,607 | ) | 12,187 | (4 | ) | 9,651 | 16,422 | (41 | ) | ||||||||||||||||||||||
Operating expenses (2) | 58,308 | 54,820 | 60,126 | 51,426 | 53,710 | 9 | 113,128 | 105,498 | 7 | |||||||||||||||||||||||||||
Loss on sale of nonperforming assets | 45,349 | — | — | — | — | 45,349 | — | |||||||||||||||||||||||||||||
Operating loss from continuing operations before taxes | (91,951 | ) | (56,875 | ) | (71,750 | ) | (70,033 | ) | (41,523 | ) | (121 | ) | (148,826 | ) | (89,076 | ) | (67 | ) | ||||||||||||||||||
Operating income tax benefit | (32,419 | ) | (22,417 | ) | (31,687 | ) | (26,252 | ) | (18,394 | ) | (54,836 | ) | (33,815 | ) | ||||||||||||||||||||||
Net operating loss from continuing operations (1)(2) | (59,532 | ) | (34,458 | ) | (40,063 | ) | (43,781 | ) | (23,129 | ) | (157 | ) | (93,990 | ) | (55,261 | ) | (70 | ) | ||||||||||||||||||
Gain from acquisition, net of tax expense | — | — | — | — | 7,062 | — | 7,062 | |||||||||||||||||||||||||||||
Noncash goodwill impairment charges | — | — | — | (25,000 | ) | — | — | (70,000 | ) | |||||||||||||||||||||||||||
Severance costs, net of tax benefit | — | — | — | — | — | — | (1,797 | ) | ||||||||||||||||||||||||||||
(Loss) income from discontinued operations | — | (101 | ) | 228 | 63 | 66 | (101 | ) | 222 | |||||||||||||||||||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | — | 1,266 | — | — | — | 1,266 | — | |||||||||||||||||||||||||||||
Net loss | (59,532 | ) | (33,293 | ) | (39,835 | ) | (68,718 | ) | (16,001 | ) | (272 | ) | (92,825 | ) | (119,774 | ) | 22 | |||||||||||||||||||
Preferred dividends and discount accretion | 2,577 | 2,572 | 2,567 | 2,562 | 2,559 | 5,149 | 5,113 | |||||||||||||||||||||||||||||
Net loss available to common shareholders | $ | (62,109 | ) | $ | (35,865 | ) | $ | (42,402 | ) | $ | (71,280 | ) | $ | (18,560 | ) | $ | (97,974 | ) | $ | (124,887 | ) | |||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted operating loss from continuing operations (1)(2) | $ | (.66 | ) | $ | (.39 | ) | $ | (.45 | ) | $ | (.93 | ) | $ | (.53 | ) | (25 | ) | $ | (1.05 | ) | $ | (1.24 | ) | 15 | ||||||||||||
Diluted loss from continuing operations | (.66 | ) | (.39 | ) | (.45 | ) | (1.43 | ) | (.38 | ) | (74 | ) | (1.05 | ) | (2.58 | ) | 59 | |||||||||||||||||||
Diluted loss | (.66 | ) | (.38 | ) | (.45 | ) | (1.43 | ) | (.38 | ) | (74 | ) | (1.04 | ) | (2.57 | ) | 60 | |||||||||||||||||||
Stock dividends declared (6) | — | — | — | 1 for 130 | 1 for 130 | — | 2 for 130 | |||||||||||||||||||||||||||||
Book value | 7.71 | 7.95 | 8.36 | 8.85 | 13.87 | (44 | ) | 7.71 | 13.87 | (44 | ) | |||||||||||||||||||||||||
Tangible book value (4) | 5.39 | 5.62 | 6.02 | 6.50 | 8.85 | (39 | ) | 5.39 | 8.85 | (39 | ) | |||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on equity (3)(5) | (35.89 | )% | (20.10 | )% | (22.08 | )% | (45.52 | )% | (11.42 | )% | (27.87 | )% | (36.20 | )% | ||||||||||||||||||||||
Return on assets (5) | (3.10 | ) | (1.70 | ) | (1.91 | ) | (3.32 | ) | (.78 | ) | (2.39 | ) | (2.93 | ) | ||||||||||||||||||||||
Net interest margin (5) | 3.60 | 3.49 | 3.40 | 3.39 | 3.28 | 3.55 | 3.18 | |||||||||||||||||||||||||||||
Operating efficiency ratio from continuing operations (1)(2) | 141.60 | 75.22 | 78.74 | 68.35 | 73.68 | 108.48 | 74.38 | |||||||||||||||||||||||||||||
Equity to assets | 11.84 | 11.90 | 11.94 | 10.27 | 10.71 | 11.87 | 11.20 | |||||||||||||||||||||||||||||
Tangible equity to assets (4) | 9.26 | 9.39 | 9.53 | 7.55 | 7.96 | 9.32 | 8.10 | |||||||||||||||||||||||||||||
Tangible common equity to assets (4) | 6.91 | 7.13 | 7.37 | 5.36 | 5.77 | 7.02 | 5.93 | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (4) | 9.97 | 10.03 | 10.39 | 10.67 | 7.49 | 9.97 | 7.49 | |||||||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||||||
Non-performing loans | $ | 224,335 | $ | 280,802 | $ | 264,092 | $ | 304,381 | $ | 287,848 | $ | 224,335 | $ | 287,848 | ||||||||||||||||||||||
Foreclosed properties | 123,910 | 136,275 | 120,770 | 110,610 | 104,754 | 123,910 | 104,754 | |||||||||||||||||||||||||||||
Total non-performing assets (NPAs) | 348,245 | 417,077 | 384,862 | 414,991 | 392,602 | 348,245 | 392,602 | |||||||||||||||||||||||||||||
Allowance for loan losses | 174,111 | 173,934 | 155,602 | 150,187 | 145,678 | 174,111 | 145,678 | |||||||||||||||||||||||||||||
Net charge-offs | 61,323 | 56,668 | 84,585 | 90,491 | 58,312 | 117,991 | 101,593 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 3.57 | % | 3.48 | % | 3.02 | % | 2.80 | % | 2.64 | % | 3.57 | % | 2.64 | % | ||||||||||||||||||||||
Net charge-offs to average loans (5) | 4.98 | 4.51 | 6.37 | 6.57 | 4.18 | 4.75 | 3.64 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 6.97 | 8.13 | 7.30 | 7.58 | 6.99 | 6.97 | 6.99 | |||||||||||||||||||||||||||||
NPAs to total assets | 4.55 | 5.32 | 4.81 | 4.91 | 4.63 | 4.55 | 4.63 | |||||||||||||||||||||||||||||
AVERAGE BALANCES($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 5,011 | $ | 5,173 | $ | 5,357 | $ | 5,565 | $ | 5,597 | (10 | ) | $ | 5,091 | $ | 5,636 | (10 | ) | ||||||||||||||||||
Investment securities | 1,532 | 1,518 | 1,529 | 1,615 | 1,771 | (13 | ) | 1,525 | 1,742 | (12 | ) | |||||||||||||||||||||||||
Earning assets | 6,854 | 7,085 | 7,487 | 7,401 | 7,442 | (8 | ) | 6,969 | 7,486 | (7 | ) | |||||||||||||||||||||||||
Total assets | 7,704 | 7,946 | 8,287 | 8,208 | 8,212 | (6 | ) | 7,825 | 8,291 | (6 | ) | |||||||||||||||||||||||||
Deposits | 6,375 | 6,570 | 6,835 | 6,690 | 6,545 | (3 | ) | 6,472 | 6,662 | (3 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 912 | 945 | 989 | 843 | 879 | 4 | 929 | 923 | 1 | |||||||||||||||||||||||||||
Common shares — basic(thousands) | 94,524 | 94,390 | 94,219 | 49,771 | 48,794 | 94 | 94,453 | 48,560 | 95 | |||||||||||||||||||||||||||
Common shares — diluted(thousands) | 94,524 | 94,390 | 94,219 | 49,771 | 48,794 | 94 | 94,453 | 48,560 | 95 | |||||||||||||||||||||||||||
AT PERIOD END($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans * | $ | 4,873 | $ | 4,992 | $ | 5,151 | $ | 5,363 | $ | 5,513 | (12 | ) | $ | 4,873 | $ | 5,513 | (12 | ) | ||||||||||||||||||
Investment securities | 1,488 | 1,527 | 1,530 | 1,533 | 1,817 | (18 | ) | 1,488 | 1,817 | (18 | ) | |||||||||||||||||||||||||
Total assets | 7,652 | 7,837 | 8,000 | 8,444 | 8,477 | (10 | ) | 7,652 | 8,477 | (10 | ) | |||||||||||||||||||||||||
Deposits | 6,330 | 6,488 | 6,628 | 6,821 | 6,849 | (8 | ) | 6,330 | 6,849 | (8 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 904 | 926 | 962 | 1,007 | 855 | 6 | 904 | 855 | 6 | |||||||||||||||||||||||||||
Common shares outstanding(thousands) | 94,281 | 94,176 | 94,046 | 93,901 | 48,933 | 93 | 94,281 | 48,933 | 93 |
(1) | Excludes the gain from acquisition of $11.4 million, (income tax expense of $4.3 million) in the second quarter of 2009 and revenue generated by discontinued operations in all periods presented. | |
(2) | Excludes goodwill impairment charges of $25 million and $70 million in the third and first quarters of 2009, respectively, severance costs of $2.9 million, (income tax benefit of $1.1 million) in the first quarter of 2009 and expenses relating to discontinued operations for all periods presented. | |
(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. | |
* | 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
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
2010 | 2009 | For the Six | ||||||||||||||||||||||||||
(in thousands, except per share | Second | First | Fourth | Third | Second | Months Ended | ||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2010 | 2009 | |||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||
Interest revenue — taxable equivalent | $ | 87,699 | $ | 89,849 | $ | 97,481 | $ | 101,181 | $ | 102,737 | $ | 177,548 | $ | 206,299 | ||||||||||||||
Taxable equivalent adjustment | (500 | ) | (493 | ) | (601 | ) | (580 | ) | (463 | ) | (993 | ) | (951 | ) | ||||||||||||||
Interest revenue (GAAP) | $ | 87,199 | $ | 89,356 | $ | 96,880 | $ | 100,601 | $ | 102,274 | $ | 176,555 | $ | 205,348 | ||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||
Net interest revenue — taxable equivalent | $ | 61,627 | $ | 61,279 | $ | 63,929 | $ | 63,004 | $ | 60,882 | $ | 122,906 | $ | 118,294 | ||||||||||||||
Taxable equivalent adjustment | (500 | ) | (493 | ) | (601 | ) | (580 | ) | (463 | ) | (993 | ) | (951 | ) | ||||||||||||||
Net interest revenue (GAAP) | $ | 61,127 | $ | 60,786 | $ | 63,328 | $ | 62,424 | $ | 60,419 | $ | 121,913 | $ | 117,343 | ||||||||||||||
Fee revenue reconciliation | ||||||||||||||||||||||||||||
Operating fee revenue | $ | 11,579 | $ | 11,666 | $ | 14,447 | $ | 13,389 | $ | 11,305 | $ | 23,245 | $ | 23,128 | ||||||||||||||
Gain from acquisition | — | — | — | — | 11,390 | — | 11,390 | |||||||||||||||||||||
Fee revenue (GAAP) | $ | 11,579 | $ | 11,666 | $ | 14,447 | $ | 13,389 | $ | 22,695 | $ | 23,245 | $ | 34,518 | ||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||
Total operating revenue | $ | 11,706 | $ | (2,055 | ) | $ | (11,624 | ) | $ | (18,607 | ) | $ | 12,187 | $ | 9,651 | $ | 16,422 | |||||||||||
Taxable equivalent adjustment | (500 | ) | (493 | ) | (601 | ) | (580 | ) | (463 | ) | (993 | ) | (951 | ) | ||||||||||||||
Gain from acquisition | — | — | — | — | �� | 11,390 | — | 11,390 | ||||||||||||||||||||
Total revenue (GAAP) | $ | 11,206 | $ | (2,548 | ) | $ | (12,225 | ) | $ | (19,187 | ) | $ | 23,114 | $ | 8,658 | $ | 26,861 | |||||||||||
Expense reconciliation | ||||||||||||||||||||||||||||
Operating expense | $ | 103,657 | $ | 54,820 | $ | 60,126 | $ | 51,426 | $ | 53,710 | $ | 158,477 | $ | 105,498 | ||||||||||||||
Noncash goodwill impairment charge | — | — | — | 25,000 | — | — | 70,000 | |||||||||||||||||||||
Severance costs | — | — | — | — | — | — | 2,898 | |||||||||||||||||||||
Operating expense (GAAP) | $ | 103,657 | $ | 54,820 | $ | 60,126 | $ | 76,426 | $ | 53,710 | $ | 158,477 | $ | 178,396 | ||||||||||||||
Loss from continuing operations before taxes reconciliation | ||||||||||||||||||||||||||||
Operating loss from continuing operations before taxes | $ | (91,951 | ) | $ | (56,875 | ) | $ | (71,750 | ) | $ | (70,033 | ) | $ | (41,523 | ) | $ | (148,826 | ) | $ | (89,076 | ) | |||||||
Taxable equivalent adjustment | (500 | ) | (493 | ) | (601 | ) | (580 | ) | (463 | ) | (993 | ) | (951 | ) | ||||||||||||||
Gain from acquisition | — | — | — | — | 11,390 | — | 11,390 | |||||||||||||||||||||
Noncash goodwill impairment charge | — | — | — | (25,000 | ) | — | — | (70,000 | ) | |||||||||||||||||||
Severance costs | — | — | — | — | — | — | (2,898 | ) | ||||||||||||||||||||
Loss from continuing operations before taxes (GAAP) | $ | (92,451 | ) | $ | (57,368 | ) | $ | (72,351 | ) | $ | (95,613 | ) | $ | (30,596 | ) | $ | (149,819 | ) | $ | (151,535 | ) | |||||||
Income tax benefit reconciliation | ||||||||||||||||||||||||||||
Operating income tax benefit | $ | (32,419 | ) | $ | (22,417 | ) | $ | (31,687 | ) | $ | (26,252 | ) | $ | (18,394 | ) | $ | (54,836 | ) | $ | (33,815 | ) | |||||||
Taxable equivalent adjustment | (500 | ) | (493 | ) | (601 | ) | (580 | ) | (463 | ) | (993 | ) | (951 | ) | ||||||||||||||
Gain from acquisition, tax expense | — | — | — | — | 4,328 | — | 4,328 | |||||||||||||||||||||
Severance costs, tax benefit | — | — | — | — | — | — | (1,101 | ) | ||||||||||||||||||||
Income tax benefit (GAAP) | $ | (32,919 | ) | $ | (22,910 | ) | $ | (32,288 | ) | $ | (26,832 | ) | $ | (14,529 | ) | $ | (55,829 | ) | $ | (31,539 | ) | |||||||
Diluted loss from continuing operations per common share reconciliation | ||||||||||||||||||||||||||||
Diluted operating loss from continuing operations per common share | $ | (.66 | ) | $ | (.39 | ) | $ | (.45 | ) | $ | (.93 | ) | $ | (.53 | ) | $ | (1.05 | ) | $ | (1.24 | ) | |||||||
Gain from acquisition | — | — | — | — | .15 | — | .15 | |||||||||||||||||||||
Noncash goodwill impairment charge | — | — | — | (.50 | ) | — | — | (1.45 | ) | |||||||||||||||||||
Severance costs | — | — | — | — | — | — | (.04 | ) | ||||||||||||||||||||
Diluted loss from continuing operations per common share (GAAP) | $ | (.66 | ) | $ | (.39 | ) | $ | (.45 | ) | $ | (1.43 | ) | $ | (.38 | ) | $ | (1.05 | ) | $ | (2.58 | ) | |||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||
Tangible book value per common share | $ | 5.39 | $ | 5.62 | $ | 6.02 | $ | 6.50 | $ | 8.85 | $ | 5.39 | $ | 8.85 | ||||||||||||||
Effect of goodwill and other intangibles | 2.32 | 2.33 | 2.34 | 2.35 | 5.02 | 2.32 | 5.02 | |||||||||||||||||||||
Book value per common share (GAAP) | $ | 7.71 | $ | 7.95 | $ | 8.36 | $ | 8.85 | $ | 13.87 | $ | 7.71 | $ | 13.87 | ||||||||||||||
Efficiency ratio from continuing operations reconciliation | ||||||||||||||||||||||||||||
Operating efficiency ratio from continuing operations | 141.60 | % | 75.22 | % | 78.74 | % | 68.35 | % | 73.68 | % | 108.48 | % | 74.38 | % | ||||||||||||||
Gain from acquisition | — | — | — | — | (9.96 | ) | — | (5.53 | ) | |||||||||||||||||||
Noncash goodwill impairment charge | — | — | — | 33.22 | — | — | 45.69 | |||||||||||||||||||||
Severance costs | — | — | — | — | — | — | 1.89 | |||||||||||||||||||||
Efficiency ratio from continuing operations (GAAP) | 141.60 | % | 75.22 | % | 78.74 | % | 101.57 | % | 63.72 | % | 108.48 | % | 116.43 | % | ||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to assets | 6.91 | % | 7.13 | % | 7.37 | % | 5.36 | % | 5.77 | % | 7.02 | % | 5.93 | % | ||||||||||||||
Effect of preferred equity | 2.35 | 2.26 | 2.16 | 2.19 | 2.19 | 2.30 | 2.17 | |||||||||||||||||||||
Tangible equity to assets | 9.26 | 9.39 | 9.53 | 7.55 | 7.96 | 9.32 | 8.10 | |||||||||||||||||||||
Effect of goodwill and other intangibles | 2.58 | 2.51 | 2.41 | 2.72 | 2.75 | 2.55 | 3.10 | |||||||||||||||||||||
Equity to assets (GAAP) | 11.84 | % | 11.90 | % | 11.94 | % | 10.27 | % | 10.71 | % | 11.87 | % | 11.20 | % | ||||||||||||||
Actual tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 9.97 | % | 10.03 | % | 10.39 | % | 10.67 | % | 7.49 | % | 9.97 | % | 7.49 | % | ||||||||||||||
Effect of other comprehensive income | (.87 | ) | (.85 | ) | (.87 | ) | (.90 | ) | (.72 | ) | (.87 | ) | (.72 | ) | ||||||||||||||
Effect of deferred tax limitation | (2.47 | ) | (1.75 | ) | (1.27 | ) | (.58 | ) | (.22 | ) | (2.47 | ) | (.22 | ) | ||||||||||||||
Effect of trust preferred | 1.03 | 1.00 | .97 | .92 | .90 | 1.03 | .90 | |||||||||||||||||||||
Effect of preferred equity | 3.41 | 3.29 | 3.19 | 3.04 | 2.99 | 3.41 | 2.99 | |||||||||||||||||||||
Tier I capital ratio (Regulatory) | 11.07 | % | 11.72 | % | 12.41 | % | 13.15 | % | 10.44 | % | 11.07 | % | 10.44 | % | ||||||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
Financial Highlights
Loan Portfolio Composition at Period-End
2010 | 2009 | Linked | Year over | |||||||||||||||||||||||||
Second | First | Fourth | Third | Second | Quarter | Year | ||||||||||||||||||||||
(in millions) | Quarter(1) | Quarter(1) | Quarter(1) | Quarter(1) | Quarter(1) | Change | Change | |||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 1,780 | $ | 1,765 | $ | 1,779 | $ | 1,787 | $ | 1,797 | $ | 15 | $ | (17 | ) | |||||||||||||
Commercial construction | 342 | 357 | 363 | 380 | 379 | (15 | ) | (37 | ) | |||||||||||||||||||
Commercial & industrial | 441 | 381 | 390 | 403 | 399 | 60 | 42 | |||||||||||||||||||||
Total commercial | 2,563 | 2,503 | 2,532 | 2,570 | 2,575 | 60 | (12 | ) | ||||||||||||||||||||
Residential construction | 820 | 960 | 1,050 | 1,185 | 1,315 | (140 | ) | (495 | ) | |||||||||||||||||||
Residential mortgage | 1,356 | 1,390 | 1,427 | 1,461 | 1,470 | (34 | ) | (114 | ) | |||||||||||||||||||
Consumer / installment | 134 | 139 | 142 | 147 | 153 | (5 | ) | (19 | ) | |||||||||||||||||||
Total loans | $ | 4,873 | $ | 4,992 | $ | 5,151 | $ | 5,363 | $ | 5,513 | (119 | ) | (640 | ) | ||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
Atlanta MSA | $ | 1,373 | $ | 1,404 | $ | 1,435 | $ | 1,526 | $ | 1,605 | (31 | ) | (232 | ) | ||||||||||||||
Gainesville MSA | 343 | 372 | 390 | 402 | 413 | (29 | ) | (70 | ) | |||||||||||||||||||
North Georgia | 1,808 | 1,814 | 1,884 | 1,942 | 1,978 | (6 | ) | (170 | ) | |||||||||||||||||||
Western North Carolina | 738 | 756 | 772 | 786 | 794 | (18 | ) | (56 | ) | |||||||||||||||||||
Coastal Georgia | 356 | 388 | 405 | 440 | 455 | (32 | ) | (99 | ) | |||||||||||||||||||
East Tennessee | 255 | 258 | 265 | 267 | 268 | (3 | ) | (13 | ) | |||||||||||||||||||
Total loans | $ | 4,873 | $ | 4,992 | $ | 5,151 | $ | 5,363 | $ | 5,513 | (119 | ) | (640 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 214 | $ | 290 | $ | 332 | $ | 380 | $ | 413 | (76 | ) | (199 | ) | ||||||||||||||
Land loans | 110 | 124 | 127 | 159 | 159 | (14 | ) | (49 | ) | |||||||||||||||||||
Lot loans | 311 | 321 | 336 | 336 | 369 | (10 | ) | (58 | ) | |||||||||||||||||||
Total | 635 | 735 | 795 | 875 | 941 | (100 | ) | (306 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 125 | 153 | 178 | 218 | 268 | (28 | ) | (143 | ) | |||||||||||||||||||
Sold | 60 | 72 | 77 | 92 | 106 | (12 | ) | (46 | ) | |||||||||||||||||||
Total | 185 | 225 | 255 | 310 | 374 | (40 | ) | (189 | ) | |||||||||||||||||||
Total residential construction | $ | 820 | $ | 960 | $ | 1,050 | $ | 1,185 | $ | 1,315 | (140 | ) | (495 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION - ATLANTA MSA | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 52 | $ | 66 | $ | 76 | $ | 100 | $ | 124 | (14 | ) | (72 | ) | ||||||||||||||
Land loans | 32 | 43 | 43 | 61 | 63 | (11 | ) | (31 | ) | |||||||||||||||||||
Lot loans | 39 | 47 | 52 | 54 | 81 | (8 | ) | (42 | ) | |||||||||||||||||||
Total | 123 | 156 | 171 | 215 | 268 | (33 | ) | (145 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 50 | 58 | 68 | 91 | 127 | (8 | ) | (77 | ) | |||||||||||||||||||
Sold | 10 | 14 | 16 | 22 | 29 | (4 | ) | (19 | ) | |||||||||||||||||||
Total | 60 | 72 | 84 | 113 | 156 | (12 | ) | (96 | ) | |||||||||||||||||||
Total residential construction | $ | 183 | $ | 228 | $ | 255 | $ | 328 | $ | 424 | (45 | ) | (241 | ) | ||||||||||||||
(1) | Excludes total loans of $80.8 million, $79.5 million, $85.1 million, $104.0 million and $109.9 million as of June 30, 2010, March 31, 2010, 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. |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Financial Highlights
Credit Quality(1)
Second Quarter 2010 | First Quarter 2010 | Fourth Quarter 2009 | ||||||||||||||||||||||||||||||||||
Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | ||||||||||||||||||||||||||||
(in thousands) | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||
NPAs BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 56,013 | $ | 13,297 | $ | 69,310 | $ | 45,918 | $ | 21,597 | $ | 67,515 | $ | 37,040 | $ | 15,842 | $ | 52,882 | ||||||||||||||||||
Commercial construction | 17,872 | 11,339 | 29,211 | 23,556 | 14,285 | 37,841 | 19,976 | 9,761 | 29,737 | |||||||||||||||||||||||||||
Commercial & industrial | 7,245 | — | 7,245 | 3,610 | — | 3,610 | 3,946 | — | 3,946 | |||||||||||||||||||||||||||
Total commercial | 81,130 | 24,636 | 105,766 | 73,084 | 35,882 | 108,966 | 60,962 | 25,603 | 86,565 | |||||||||||||||||||||||||||
Residential construction | 88,375 | 74,444 | 162,819 | 147,326 | 74,220 | 221,546 | 142,332 | 76,519 | 218,851 | |||||||||||||||||||||||||||
Residential mortgage | 53,175 | 24,830 | 78,005 | 57,920 | 26,173 | 84,093 | 58,767 | 18,648 | 77,415 | |||||||||||||||||||||||||||
Consumer / installment | 1,655 | — | 1,655 | 2,472 | — | 2,472 | 2,031 | — | 2,031 | |||||||||||||||||||||||||||
Total NPAs | $ | 224,335 | $ | 123,910 | $ | 348,245 | $ | 280,802 | $ | 136,275 | $ | 417,077 | $ | 264,092 | $ | 120,770 | $ | 384,862 | ||||||||||||||||||
NPAs BY MARKET | ||||||||||||||||||||||||||||||||||||
Atlanta MSA | $ | 74,031 | $ | 30,605 | $ | 104,636 | $ | 81,914 | $ | 36,951 | $ | 118,865 | $ | 106,536 | $ | 41,125 | $ | 147,661 | ||||||||||||||||||
Gainesville MSA | 10,730 | 2,750 | 13,480 | 17,058 | 3,192 | 20,250 | 5,074 | 2,614 | 7,688 | |||||||||||||||||||||||||||
North Georgia | 102,198 | 60,597 | 162,795 | 109,280 | 63,128 | 172,408 | 87,598 | 53,072 | 140,670 | |||||||||||||||||||||||||||
Western North Carolina | 22,776 | 11,473 | 34,249 | 31,353 | 8,588 | 39,941 | 29,610 | 5,096 | 34,706 | |||||||||||||||||||||||||||
Coastal Georgia | 8,341 | 16,548 | 24,889 | 33,438 | 21,871 | 55,309 | 26,871 | 17,150 | 44,021 | |||||||||||||||||||||||||||
East Tennessee | 6,259 | 1,937 | 8,196 | 7,759 | 2,545 | 10,304 | 8,403 | 1,713 | 10,116 | |||||||||||||||||||||||||||
Total NPAs | $ | 224,335 | $ | 123,910 | $ | 348,245 | $ | 280,802 | $ | 136,275 | $ | 417,077 | $ | 264,092 | $ | 120,770 | $ | 384,862 | ||||||||||||||||||
NPA ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 280,802 | $ | 136,275 | $ | 417,077 | $ | 264,092 | $ | 120,770 | $ | 384,862 | $ | 304,381 | $ | 110,610 | $ | 414,991 | ||||||||||||||||||
Loans placed on non-accrual | 155,007 | — | 155,007 | 139,030 | — | 139,030 | 174,898 | — | 174,898 | |||||||||||||||||||||||||||
Payments received | (12,189 | ) | — | (12,189 | ) | (5,733 | ) | — | (5,733 | ) | (26,935 | ) | — | (26,935 | ) | |||||||||||||||||||||
Loan charge-offs | (62,693 | ) | — | (62,693 | ) | (58,897 | ) | — | (58,897 | ) | (88,427 | ) | — | (88,427 | ) | |||||||||||||||||||||
Foreclosures | (66,994 | ) | 66,994 | — | (49,233 | ) | 49,233 | — | (79,983 | ) | 79,983 | — | ||||||||||||||||||||||||
Capitalized costs | — | 305 | 305 | — | 320 | 320 | — | 981 | 981 | |||||||||||||||||||||||||||
Note / property sales | (69,598 | ) | (68,472 | ) | (138,070 | ) | (8,457 | ) | (25,951 | ) | (34,408 | ) | (19,842 | ) | (61,228 | ) | (81,070 | ) | ||||||||||||||||||
Write downs | — | (6,094 | ) | (6,094 | ) | — | (4,579 | ) | (4,579 | ) | — | (2,209 | ) | (2,209 | ) | |||||||||||||||||||||
Net losses on sales | — | (5,098 | ) | (5,098 | ) | — | (3,518 | ) | (3,518 | ) | — | (7,367 | ) | (7,367 | ) | |||||||||||||||||||||
Ending Balance | $ | 224,335 | $ | 123,910 | $ | 348,245 | $ | 280,802 | $ | 136,275 | $ | 417,077 | $ | 264,092 | $ | 120,770 | $ | 384,862 | ||||||||||||||||||
Second Quarter 2010 | First Quarter 2010 | Fourth Quarter 2009 | ||||||||||||||||||||||
Net Charge- | Net Charge- | Net Charge- | ||||||||||||||||||||||
Offs to | Offs to | Offs to | ||||||||||||||||||||||
Net | Average | Net | Average | Net | Average | |||||||||||||||||||
(in thousands) | Charge-Offs | Loans (2) | Charge-Offs | Loans (2) | Charge-Offs | Loans (2) | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 9,757 | 2.21 | % | $ | 1,964 | .45 | % | $ | 3,896 | .86 | % | ||||||||||||
Commercial construction | 1,460 | 1.67 | 2,206 | 2.48 | 4,717 | 5.03 | ||||||||||||||||||
Commercial & industrial | 867 | .85 | 4,110 | 4.31 | 153 | .15 | ||||||||||||||||||
Total commercial | 12,084 | 1.91 | 8,280 | 1.33 | 8,766 | 1.36 | ||||||||||||||||||
Residential construction | 41,515 | 18.71 | 43,100 | 17.32 | 67,393 | 23.87 | ||||||||||||||||||
Residential mortgage | 6,517 | 1.90 | 4,551 | 1.31 | 7,026 | 1.93 | ||||||||||||||||||
Consumer / installment | 1,207 | 3.53 | 737 | 2.12 | 1,400 | 3.83 | ||||||||||||||||||
Total | $ | 61,323 | 4.98 | $ | 56,668 | 4.51 | $ | 84,585 | 6.37 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
Atlanta MSA | $ | 16,926 | 4.85 | % | $ | 15,545 | 4.32 | % | $ | 43,595 | 12.07 | % | ||||||||||||
Gainesville MSA | 2,547 | 3.01 | 1,675 | 1.92 | 2,273 | 2.49 | ||||||||||||||||||
North Georgia | 28,100 | 6.19 | 29,747 | 6.51 | 18,057 | 3.57 | ||||||||||||||||||
Western North Carolina | 7,194 | 3.86 | 3,695 | 1.96 | 10,091 | 5.11 | ||||||||||||||||||
Coastal Georgia | 5,581 | 6.07 | 5,649 | 5.74 | 8,109 | 7.72 | ||||||||||||||||||
East Tennessee | 975 | 1.53 | 357 | .55 | 2,460 | 3.67 | ||||||||||||||||||
Total | $ | 61,323 | 4.98 | $ | 56,668 | 4.51 | $ | 84,585 | 6.37 | |||||||||||||||
(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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share data) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 70,611 | $ | 81,691 | $ | 142,826 | $ | 163,571 | ||||||||
Investment securities, including tax exempt of $295, $309, $606 and $628 | 15,829 | 20,485 | 32,032 | 41,237 | ||||||||||||
Federal funds sold, commercial paper and deposits in banks | 759 | 98 | 1,697 | 540 | ||||||||||||
Total interest revenue | 87,199 | 102,274 | 176,555 | 205,348 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW | 1,745 | 2,843 | 3,599 | 6,180 | ||||||||||||
Money market | 1,829 | 2,269 | 3,586 | 4,506 | ||||||||||||
Savings | 83 | 121 | 167 | 248 | ||||||||||||
Time | 17,718 | 32,064 | 37,916 | 68,117 | ||||||||||||
Total deposit interest expense | 21,375 | 37,297 | 45,268 | 79,051 | ||||||||||||
Federal funds purchased, repurchase agreements and other short-term borrowings | 1,056 | 595 | 2,094 | 1,148 | ||||||||||||
Federal Home Loan Bank advances | 974 | 1,203 | 1,951 | 2,277 | ||||||||||||
Long-term debt | 2,667 | 2,760 | 5,329 | 5,529 | ||||||||||||
Total interest expense | 26,072 | 41,855 | 54,642 | 88,005 | ||||||||||||
Net interest revenue | 61,127 | 60,419 | 121,913 | 117,343 | ||||||||||||
Provision for loan losses | 61,500 | 60,000 | 136,500 | 125,000 | ||||||||||||
Net interest revenue after provision for loan losses | (373 | ) | 419 | (14,587 | ) | (7,657 | ) | |||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 7,993 | 7,557 | 15,440 | 14,591 | ||||||||||||
Mortgage loan and other related fees | 1,601 | 2,825 | 3,080 | 5,476 | ||||||||||||
Brokerage fees | 586 | 497 | 1,153 | 1,186 | ||||||||||||
Securities losses, net | — | (711 | ) | 61 | (408 | ) | ||||||||||
Gain from acquisition | — | 11,390 | — | 11,390 | ||||||||||||
Other | 1,399 | 1,137 | 3,511 | 2,283 | ||||||||||||
Total fee revenue | 11,579 | 22,695 | 23,245 | 34,518 | ||||||||||||
Total revenue | 11,206 | 23,114 | 8,658 | 26,861 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 23,590 | 26,305 | 47,950 | 53,618 | ||||||||||||
Communications and equipment | 3,511 | 3,571 | 6,784 | 7,217 | ||||||||||||
Occupancy | 3,836 | 3,818 | 7,650 | 7,587 | ||||||||||||
Advertising and public relations | 1,352 | 1,125 | 2,395 | 2,169 | ||||||||||||
Postage, printing and supplies | 765 | 1,288 | 1,990 | 2,463 | ||||||||||||
Professional fees | 2,178 | 3,195 | 4,121 | 6,476 | ||||||||||||
Foreclosed preoperty | 14,540 | 5,737 | 25,353 | 10,056 | ||||||||||||
FDIC assessments and other regulatory charges | 3,566 | 6,810 | 7,192 | 9,492 | ||||||||||||
Amortization of intangibles | 794 | 739 | 1,596 | 1,478 | ||||||||||||
Other | 4,176 | 1,122 | 8,097 | 4,942 | ||||||||||||
Loss on sale of nonperforming assets | 45,349 | — | 45,349 | — | ||||||||||||
Goodwill impairment | — | — | — | 70,000 | ||||||||||||
Severance costs | — | — | — | 2,898 | ||||||||||||
Total operating expenses | 103,657 | 53,710 | 158,477 | 178,396 | ||||||||||||
Loss from continuing operations before income taxes | (92,451 | ) | (30,596 | ) | (149,819 | ) | (151,535 | ) | ||||||||
Income tax benefit | (32,919 | ) | (14,529 | ) | (55,829 | ) | (31,539 | ) | ||||||||
Net loss from continuing operations | (59,532 | ) | (16,067 | ) | (93,990 | ) | (119,996 | ) | ||||||||
(Loss) income from discontinued operations, net of income taxes | — | 66 | (101 | ) | 222 | |||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | — | — | 1,266 | — | ||||||||||||
Net loss | (59,532 | ) | (16,001 | ) | (92,825 | ) | (119,774 | ) | ||||||||
Preferred stock dividends and discount accretion | 2,577 | 2,559 | 5,149 | 5,113 | ||||||||||||
Net loss available to common shareholders | $ | (62,109 | ) | $ | (18,560 | ) | $ | (97,974 | ) | $ | (124,887 | ) | ||||
Loss from continuing operations per common share — Basic / Diluted | $ | (.66 | ) | $ | (.38 | ) | $ | (1.05 | ) | $ | (2.58 | ) | ||||
Loss per common share — Basic / Diluted | (.66 | ) | (.38 | ) | (1.04 | ) | (2.57 | ) | ||||||||
Weighted average common shares outstanding — Basic / Diluted | 94,524 | 48,794 | 94,453 | 48,560 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
Consolidated Balance Sheet
June 30, | December 31, | June 30, | ||||||||||
(in thousands, except share and per share data) | 2010 | 2009 | 2009 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 115,088 | $ | 126,265 | $ | 110,943 | ||||||
Interest-bearing deposits in banks | 105,183 | 120,382 | 70,474 | |||||||||
Federal funds sold, commercial paper and short-term investments | 148,227 | 129,720 | — | |||||||||
Cash and cash equivalents | 368,498 | 376,367 | 181,417 | |||||||||
Securities available for sale | 1,165,776 | 1,530,047 | 1,816,787 | |||||||||
Securities held to maturity (fair value $327,497) | 322,148 | — | — | |||||||||
Mortgage loans held for sale | 22,705 | 30,226 | 42,185 | |||||||||
Loans, net of unearned income | 4,873,030 | 5,151,476 | 5,513,087 | |||||||||
Less allowance for loan losses | 174,111 | 155,602 | 145,678 | |||||||||
Loans, net | 4,698,919 | 4,995,874 | 5,367,409 | |||||||||
Assets covered by loss sharing agreements with the FDIC | 156,611 | 185,938 | 230,125 | |||||||||
Premises and equipment, net | 180,125 | 182,038 | 178,983 | |||||||||
Accrued interest receivable | 29,650 | 33,867 | 41,405 | |||||||||
Goodwill and other intangible assets | 223,600 | 225,196 | 251,821 | |||||||||
Foreclosed property | 123,910 | 120,770 | 104,754 | |||||||||
Other assets | 360,542 | 319,591 | 262,469 | |||||||||
Total assets | $ | 7,652,484 | $ | 7,999,914 | $ | 8,477,355 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 779,934 | $ | 707,826 | $ | 714,630 | ||||||
NOW | 1,326,861 | 1,335,790 | 1,273,368 | |||||||||
Money market | 756,370 | 713,901 | 573,463 | |||||||||
Savings | 185,176 | 177,427 | 180,368 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,575,211 | 1,746,511 | 1,992,056 | |||||||||
Greater than $100,000 | 1,093,975 | 1,187,499 | 1,351,527 | |||||||||
Brokered | 611,985 | 758,880 | 763,348 | |||||||||
Total deposits | 6,329,512 | 6,627,834 | 6,848,760 | |||||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 104,127 | 101,389 | 252,493 | |||||||||
Federal Home Loan Bank advances | 104,138 | 114,501 | 283,292 | |||||||||
Long-term debt | 150,106 | 150,066 | 150,026 | |||||||||
Accrued expenses and other liabilities | 60,184 | 43,803 | 87,512 | |||||||||
Total liabilities | 6,748,067 | 7,037,593 | 7,622,083 | |||||||||
Shareholders’ equity: | ||||||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||||||
Series A; $10 stated value; 21,700 shares issued and outstanding | 217 | 217 | 217 | |||||||||
Series B; $1,000 stated value; 180,000 shares issued and outstanding | 175,050 | 174,408 | 173,785 | |||||||||
Common stock, $1 par value; 200,000,000 shares authorized; | ||||||||||||
94,280,925, 94,045,603 and 48,933,383 shares issued and outstanding | 94,281 | 94,046 | 48,933 | |||||||||
Common stock issuable; 284,771, 221,906 and 182,041 shares | 3,898 | 3,597 | 3,383 | |||||||||
Capital surplus | 663,836 | 622,034 | 450,514 | |||||||||
(Accumulated deficit) retained earnings | (77,590 | ) | 20,384 | 136,624 | ||||||||
Accumulated other comprehensive income | 44,725 | 47,635 | 41,816 | |||||||||
Total shareholders’ equity | 904,417 | 962,321 | 855,272 | |||||||||
Total liabilities and shareholders’ equity | $ | 7,652,484 | $ | 7,999,914 | $ | 8,477,355 | ||||||
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2010 | 2009 | |||||||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||||||
(dollars in thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1)(2) | $ | 5,010,937 | $ | 70,640 | 5.65 | % | $ | 5,597,259 | $ | 81,567 | 5.85 | % | ||||||||||||
Taxable securities(3) | 1,503,162 | 15,534 | 4.13 | 1,742,620 | 20,176 | 4.63 | ||||||||||||||||||
Tax-exempt securities(1)(3) | 28,920 | 482 | 6.67 | 28,862 | 506 | 7.01 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 311,475 | 1,043 | 1.34 | 73,437 | 488 | 2.66 | ||||||||||||||||||
Total interest-earning assets | 6,854,494 | 87,699 | 5.13 | 7,442,178 | 102,737 | 5.53 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (193,998 | ) | (147,691 | ) | ||||||||||||||||||||
Cash and due from banks | 100,931 | 101,830 | ||||||||||||||||||||||
Premises and equipment | 181,064 | 179,446 | ||||||||||||||||||||||
Other assets(3) | 761,803 | 636,377 | ||||||||||||||||||||||
Total assets | $ | 7,704,294 | $ | 8,212,140 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,325,099 | $ | 1,745 | .53 | $ | 1,258,134 | $ | 2,843 | .91 | ||||||||||||||
Money market | 746,039 | 1,829 | .98 | 521,989 | 2,269 | 1.74 | ||||||||||||||||||
Savings | 186,628 | 83 | .18 | 178,435 | 121 | .27 | ||||||||||||||||||
Time less than $100,000 | 1,605,308 | 7,887 | 1.97 | 1,894,071 | 15,342 | 3.25 | ||||||||||||||||||
Time greater than $100,000 | 1,110,010 | 6,102 | 2.20 | 1,325,757 | 11,513 | 3.48 | ||||||||||||||||||
Brokered | 642,954 | 3,729 | 2.33 | 686,070 | 5,209 | 3.05 | ||||||||||||||||||
Total interest-bearing deposits | 5,616,038 | 21,375 | 1.53 | 5,864,456 | 37,297 | 2.55 | ||||||||||||||||||
Federal funds purchased and other borrowings | 104,637 | 1,056 | 4.05 | 220,376 | 595 | 1.08 | ||||||||||||||||||
Federal Home Loan Bank advances | 107,948 | 974 | 3.62 | 309,962 | 1,203 | 1.56 | ||||||||||||||||||
Long-term debt | 150,097 | 2,667 | 7.13 | 151,019 | 2,760 | 7.33 | ||||||||||||||||||
Total borrowed funds | 362,682 | 4,697 | 5.19 | 681,357 | 4,558 | 2.68 | ||||||||||||||||||
Total interest-bearing liabilities | 5,978,720 | 26,072 | 1.75 | 6,545,813 | 41,855 | 2.56 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 758,558 | 680,081 | ||||||||||||||||||||||
Other liabilities | 54,931 | 107,036 | ||||||||||||||||||||||
Total liabilities | 6,792,209 | 7,332,930 | ||||||||||||||||||||||
Shareholders’ equity | 912,085 | 879,210 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,704,294 | $ | 8,212,140 | ||||||||||||||||||||
Net interest revenue | $ | 61,627 | $ | 60,882 | ||||||||||||||||||||
Net interest-rate spread | 3.38 | % | 2.97 | % | ||||||||||||||||||||
Net interest margin(4) | 3.60 | % | 3.28 | % | ||||||||||||||||||||
(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 $43.6 million in 2010 and $14.7 million in 2009 are included in other assets for purposes of this presentation. | |
(4) | Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. |
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
2010 | 2009 | |||||||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||||||
(dollars in thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1)(2) | $ | 5,091,445 | $ | 142,859 | 5.66 | % | $ | 5,635,942 | $ | 163,316 | 5.84 | % | ||||||||||||
Taxable securities(3) | 1,495,447 | 31,426 | 4.20 | 1,712,778 | 40,609 | 4.74 | ||||||||||||||||||
Tax-exempt securities(1)(3) | 29,482 | 991 | 6.72 | 29,453 | 1,028 | 6.98 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 352,683 | 2,272 | 1.29 | 107,788 | 1,346 | 2.50 | ||||||||||||||||||
Total interest-earning assets | 6,969,057 | 177,548 | 5.13 | 7,485,961 | 206,299 | 5.55 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (190,662 | ) | (138,297 | ) | ||||||||||||||||||||
Cash and due from banks | 102,728 | 103,113 | ||||||||||||||||||||||
Premises and equipment | 181,493 | 179,470 | ||||||||||||||||||||||
Other assets(3) | 762,014 | 661,520 | ||||||||||||||||||||||
Total assets | $ | 7,824,630 | $ | 8,291,767 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,343,297 | $ | 3,599 | .54 | $ | 1,307,865 | $ | 6,180 | .95 | ||||||||||||||
Money market | 734,817 | 3,586 | .98 | 499,780 | 4,506 | 1.82 | ||||||||||||||||||
Savings | 183,555 | 167 | .18 | 175,587 | 248 | .28 | ||||||||||||||||||
Time less than $100,000 | 1,648,739 | 16,778 | 2.05 | 1,918,349 | 32,559 | 3.42 | ||||||||||||||||||
Time greater than $100,000 | 1,132,767 | 12,872 | 2.29 | 1,359,286 | 24,338 | 3.61 | ||||||||||||||||||
Brokered | 689,717 | 8,266 | 2.42 | 735,844 | 11,220 | 3.07 | ||||||||||||||||||
Total interest-bearing deposits | 5,732,892 | 45,268 | 1.59 | 5,996,711 | 79,051 | 2.66 | ||||||||||||||||||
Federal funds purchased and other borrowings | 103,355 | 2,094 | 4.09 | 185,639 | 1,148 | 1.25 | ||||||||||||||||||
Federal Home Loan Bank advances | 111,150 | 1,951 | 3.54 | 257,742 | 2,277 | 1.78 | ||||||||||||||||||
Long-term debt | 150,088 | 5,329 | 7.16 | 151,009 | 5,529 | 7.38 | ||||||||||||||||||
Total borrowed funds | 364,593 | 9,374 | 5.18 | 594,390 | 8,954 | 3.04 | ||||||||||||||||||
Total interest-bearing liabilities | 6,097,485 | 54,642 | 1.81 | 6,591,101 | 88,005 | 2.69 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 738,876 | 665,170 | ||||||||||||||||||||||
Other liabilities | 59,605 | 112,382 | ||||||||||||||||||||||
Total liabilities | 6,895,966 | 7,368,653 | ||||||||||||||||||||||
Shareholders’ equity | 928,664 | 923,114 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,824,630 | $ | 8,291,767 | ||||||||||||||||||||
Net interest revenue | $ | 122,906 | $ | 118,294 | ||||||||||||||||||||
Net interest-rate spread | 3.32 | % | 2.86 | % | ||||||||||||||||||||
Net interest margin(4) | 3.55 | % | 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 $43.4 million in 2010 and $12.7 million in 2009 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. |