Exhibit 99.1
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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 OF $142.5 MILLION FOR FIRST QUARTER 2011
NET OPERATING LOSS OF $142.5 MILLION FOR FIRST QUARTER 2011
• | Completed strategically significant $380 million private equity offering | ||
• | Executed major elements of our asset disposition plan to de-risk balance sheet: |
• | completed $267 million bulk loan sale on April 18 | ||
• | sold $77.5 million in loans and foreclosed properties | ||
• | aggressively wrote down foreclosed properties to 30 percent of unpaid principal balance |
• | Nonperforming assets down 57 percent from prior quarter and at lowest level in three years | ||
• | Allowance for loan losses remains strong at 3.17 percent of loans | ||
• | Core transaction deposits up 13 percent on an annualized basis |
BLAIRSVILLE, GA — April 28, 2011 — United Community Banks, Inc. (NASDAQ: UCBI) today reported a net operating loss from continuing operations of $142.5 million, or $1.57 per diluted share, for the first quarter of 2011. The higher net operating loss reflects the board of directors’ decision to adopt an aggressive asset disposition plan to quickly sell and write down problem assets following United’s private equity offering.
“The asset disposition plan includes bulk sales of classified loans, as well as aggressive write-downs of foreclosed properties to levels significantly less than the appraised values in order to accelerate their sales,” stated Jimmy Tallent, president and chief executive officer. “The completion of the $380 million offering and the execution of our asset disposition plan are key accomplishments toward our goal of achieving sustained profitability beginning in the second quarter of 2011.”
The accelerated disposition of classified loans through bulk sales and transfers to foreclosed properties represented $211.1 million of the $231.6 million in net charge-offs for the first quarter. The bulk loan sale included performing substandard loans of $166.1 million and nonperforming loans of $100.5 million. These classified loans were written down in the first quarter to the expected sales proceeds of $80.6 million, resulting in loan charge-offs of $186.0 million. The bulk loan sale transaction was completed on April 18, 2011.
Additionally, United sold $20.9 million in other classified loans and transferred $32.6 million in nonperforming loans to foreclosed properties during the first quarter resulting in additional loan charge-offs of $25.1 million. Remaining net charge-offs of $20.5 million for the quarter were due to the inflow of nonperforming loans and other activities. These actions reduced nonperforming loans to $83.8 million at quarter-end, down from $179.1 million at the end of the fourth quarter of 2010 and from $280.8 million a year ago.
“The first quarter provision for loan losses and net charge-offs — $190 million and $231.6 million, respectively — are significantly higher than prior quarters and reflect the execution of our asset disposition plan,” said Tallent. “We reduced the allowance for loan losses to $133.1 million, or 3.17 percent of loans — which remains at a prudent and conservative level.”
Execution of the asset disposition plan also included the sale of $56.6 million in foreclosed properties during the first quarter at a loss of $12.0 million, and a $48.6 million write-down of remaining foreclosed properties to accelerate their dispositions. At March 31, 2011, foreclosed properties were $54.4 million and were written down well below appraised values to 30 percent of their original unpaid principal balance.
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Total non-performing assets were $138 million at quarter-end, compared with $321 million at December 31, 2010 and $417 million at March 31, 2010; reflecting the lowest level since March 31, 2008.
“We made tremendous progress during the first quarter toward our goal of returning to profitability,” stated Jimmy Tallent. “With classified assets at a more manageable level, we can turn our focus toward other activities. The economy and the real estate market remain weak so we will move forward cautiously, but with a renewed sense of optimism. I am excited about the opportunities that lie ahead for us.”
Total loans were $4.2 billion at quarter-end, down $410 million from the prior quarter- end and down $798 million from a year ago, reflecting the higher level of net charge-offs resulting from the transfer of the bulk sale loans to the loans held-for-sale category. Residential construction loans were $550 million, or 13 percent of total loans, down $145 million from the prior quarter-end and down $410 million from a year ago. The decline during the first quarter was partially offset by $52.6 million in new customer loans, primarily commercial and small business lending in north Georgia and metropolitan Atlanta.
Taxable equivalent net interest revenue of $56.4 million was $4.9 million lower than the first quarter of 2010, primarily due to the $574 million reduction in average loan balances. Also contributing to lower net interest revenue in the first quarter was the reversal of $2.0 million in interest on performing classified loans that were included in the bulk sale transaction. The net interest margin was 3.30 percent for the first quarter of 2011, down 19 basis points from a year ago and down 28 basis points from the fourth quarter of 2010. Interest reversals on the performing classified loans that were included in the bulk loan sale accounted for 11 basis points of the decrease. In addition, maintenance of higher levels of liquidity further lowered first quarter net interest margin by 49 basis points. This compares to 30 basis points in the fourth quarter of 2010 and 18 basis points for the first quarter of 2010.
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Tallent credited United bankers for their focus on servicing customers and growing the franchise while management worked out the capital transaction and asset disposition plan. “We grew core transaction deposits in the first quarter by $89 million, or 13 percent on an annualized basis,” Tallent said. “This was due in part to a core deposit marketing initiative that we launched in 2009 and that focuses on our strong customer service culture. I have been extremely pleased with the impact it has had on deposit growth and cross-selling activities this past year. Core transaction deposits are the lifeblood of this company, and this was their ninth consecutive quarter of growth. Since the beginning of 2009, we have grown core transaction deposits by $638 million, and that is nothing short of phenomenal.”
Operating fee revenue was $11.8 million in the first quarter of 2011, compared to $11.7 million a year ago. Service charges and fees were $6.7 million, down $727,000 from a year ago, due primarily to lower overdraft fees resulting from recent regulatory changes that required customers to provide consent before using overdraft services. Other fee revenue of $2.9 million reflected an increase of $780,000 from a year ago due to the acceleration of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans.
First quarter operating expenses were $115.3 million, up $60.5 million from a year ago. The increase was due primarily to the asset disposition plan, the $60.6 million of write-downs and losses on foreclosed properties, and the $3.6 million in associated costs for property taxes and professional fees related to the bulk loan sale and private equity offering. Excluding these costs from both periods, operating expenses for the first quarter totaled $51.1 million compared to $46.7 million a year ago. Salary and benefit costs totaled $24.9 million and increased $564,000 from last year due primarily to higher health insurance costs. Professional fees of $3.3 million were $1.4 million higher than a year ago, reflecting the $1.0 million for transaction costs in the first quarter of 2011 and higher credit-related workout costs. FDIC assessments and other regulatory charges of $5.4 million reflected an increase of $1.8 million from a year ago as a result of a higher deposit insurance assessment rate and an increase in the level of insured deposits. Other operating expenses of $6.4 million were $2.5 million more than a year ago due to the $2.6 million of property taxes incurred this quarter in connection with the bulk loan sale transaction.
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Foreclosed property costs for the first quarter of 2011 were $64.9 million as compared to $10.8 million a year ago. For 2011, these costs included $60.6 million for write-downs and losses on sales and $4.3 million for maintenance and other foreclosed property costs. For 2010, write-downs and losses on sales were $8.1 million while maintenance costs were $2.7 million. Included in write-downs and losses for the first quarter of 2011 were $48.6 million of mark-downs on foreclosed properties to expedite sales and $12.0 million of losses related to the $56.6 million in sales of foreclosed properties during the first quarter.
The effective tax rate for the first quarter of 2011 was 40 percent, equal to the first quarter of 2010. The effective tax rate for the balance of 2011 is expected to return to a normal range of 35 to 36 percent; however, this rate could vary significantly depending on the level of earnings.
As of March 31, 2011, the capital ratios for United were as follows: Tier 1 Risk Based of 7.8 percent; Tier 1 Leverage of 5.1 percent; and, Total Risk Based of 15.6 percent. The quarterly average tangible equity-to-assets ratio was 8.7 percent and the tangible common equity-to-assets ratio was 5.5 percent. The holding company regulatory capital ratios reflect limitations on the inclusion of certain capital elements in Tier 1 Capital which resulted in the exclusion of a significant portion of the cumulative preferred stock issued in the private equity offering. Upon shareholder approval, which is expected at our shareholders meeting in June, the new cumulative preferred stock will convert to common stock and will be fully included in Tier 1 Capital. Assuming conversion of the cumulative preferred stock, United’s pro forma capital ratios as of March 31, 2011 would have been as follows: Tier 1 Risk Based of 13.2 percent; Tier 1 Leverage of 8.5 percent; Total Risk Based of 15.7 percent; and, tangible common equity-to-assets of 6.3 percent.
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“The first quarter of 2011 marks a significant and dramatic turning point,” Tallent said. “We’re heading into the remainder of 2011 with strong capital and a healthy, de-risked balance sheet. The weak economy and high unemployment remain, but opportunities are beginning to surpass challenges, and that is something we have not been able to say in quite some time.”
Conference Call
United Community Banks will hold a conference call today, Thursday, April 28, 2011, 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 ‘56062275.’ 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 $8.0 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 United’s 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 anticipated 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 “Risk Factors” of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
Financial Highlights
Selected Financial Information
First | ||||||||||||||||||||||||
2011 | 2010 | Quarter | ||||||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | 2011-2010 | ||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest revenue | $ | 75,965 | $ | 81,215 | $ | 84,360 | $ | 87,699 | $ | 89,849 | ||||||||||||||
Interest expense | 19,573 | 21,083 | 24,346 | 26,072 | 28,570 | |||||||||||||||||||
Net interest revenue | 56,392 | 60,132 | 60,014 | 61,627 | 61,279 | (8) | % | |||||||||||||||||
Operating provision for loan losses(1) | 190,000 | 47,750 | 50,500 | 61,500 | 75,000 | |||||||||||||||||||
Operating fee revenue (2) | 11,838 | 12,442 | 12,861 | 11,579 | 11,666 | 1 | ||||||||||||||||||
Total operating revenue(1)(2) | (121,770 | ) | 24,824 | 22,375 | 11,706 | (2,055 | ) | |||||||||||||||||
Operating expenses (3) | 115,271 | 64,918 | 64,906 | 58,308 | 54,820 | 110 | ||||||||||||||||||
Loss on sale of nonperforming assets | — | — | — | 45,349 | — | |||||||||||||||||||
Operating loss from continuing operations before taxes | (237,041 | ) | (40,094 | ) | (42,531 | ) | (91,951 | ) | (56,875 | ) | (317 | ) | ||||||||||||
Operating income tax benefit | (94,555 | ) | (16,520 | ) | (16,706 | ) | (32,419 | ) | (22,417 | ) | ||||||||||||||
Net operating loss from continuing operations (1)(2)(3) | (142,486 | ) | (23,574 | ) | (25,825 | ) | (59,532 | ) | (34,458 | ) | (314 | ) | ||||||||||||
Noncash goodwill impairment charges | — | — | (210,590 | ) | — | — | ||||||||||||||||||
Partial reversal of fraud loss provision, net of tax expense | — | 7,179 | — | — | — | |||||||||||||||||||
Loss from discontinued operations | — | — | — | — | (101 | ) | ||||||||||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | — | — | — | — | 1,266 | |||||||||||||||||||
Net loss | (142,486 | ) | (16,395 | ) | (236,415 | ) | (59,532 | ) | (33,293 | ) | (328 | ) | ||||||||||||
Preferred dividends and discount accretion | 2,778 | 2,586 | 2,581 | 2,577 | 2,572 | |||||||||||||||||||
Net loss available to common shareholders | $ | (145,264 | ) | $ | (18,981 | ) | $ | (238,996 | ) | $ | (62,109 | ) | $ | (35,865 | ) | |||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Diluted operating loss from continuing operations (1)(2)(3) | $ | (1.57 | ) | $ | (.28 | ) | $ | (.30 | ) | $ | (.66 | ) | $ | (.39 | ) | (303 | ) | |||||||
Diluted loss from continuing operations | (1.57 | ) | (.20 | ) | (2.52 | ) | (.66 | ) | (.39 | ) | (303 | ) | ||||||||||||
Diluted loss | (1.57 | ) | (.20 | ) | (2.52 | ) | (.66 | ) | (.38 | ) | (313 | ) | ||||||||||||
Book value | 2.96 | 4.84 | 5.14 | 7.71 | 7.95 | (63 | ) | |||||||||||||||||
Tangible book value (5) | 2.89 | 4.76 | 5.05 | 5.39 | 5.62 | (49 | ) | |||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||
Return on equity (4)(6) | (147.11) | % | (17.16) | % | (148.04) | % | (35.89) | % | (20.10) | % | ||||||||||||||
Return on assets (6) | (7.61 | ) | (.89 | ) | (12.47 | ) | (3.10 | ) | (1.70 | ) | ||||||||||||||
Net interest margin (6) | 3.30 | 3.58 | 3.57 | 3.60 | 3.49 | |||||||||||||||||||
Operating efficiency ratio from continuing operations (2)(3) | 169.08 | 89.45 | 89.38 | 141.60 | 75.22 | |||||||||||||||||||
Equity to assets | 8.82 | 8.85 | 11.37 | 11.84 | 11.90 | |||||||||||||||||||
Tangible equity to assets (5) | 8.73 | 8.75 | 9.19 | 9.26 | 9.39 | |||||||||||||||||||
Tangible common equity to assets (5) | 5.51 | 6.35 | 6.78 | 6.91 | 7.13 | |||||||||||||||||||
Tangible common equity to risk-weighted assets (5) | 6.40 | 9.05 | 9.60 | 9.97 | 10.03 | |||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||
Non-performing loans | $ | 83,769 | $ | 179,094 | $ | 217,766 | $ | 224,335 | $ | 280,802 | ||||||||||||||
Foreclosed properties | 54,378 | 142,208 | 129,964 | 123,910 | 136,275 | |||||||||||||||||||
Total non-performing assets (NPAs) | 138,147 | 321,302 | 347,730 | 348,245 | 417,077 | |||||||||||||||||||
Allowance for loan losses | 133,121 | 174,695 | 174,613 | 174,111 | 173,934 | |||||||||||||||||||
Operating net charge-offs(1) | 231,574 | 47,668 | 49,998 | 61,323 | 56,668 | |||||||||||||||||||
Allowance for loan losses to loans | 3.17 | % | 3.79 | % | 3.67 | % | 3.57 | % | 3.48 | % | ||||||||||||||
Operating net charge-offs to average loans (1)(6) | 20.71 | 4.03 | 4.12 | 4.98 | 4.51 | |||||||||||||||||||
NPAs to loans and foreclosed properties | 3.25 | 6.77 | 7.11 | 6.97 | 8.13 | |||||||||||||||||||
NPAs to total assets | 1.73 | 4.32 | 4.96 | 4.55 | 5.32 | |||||||||||||||||||
AVERAGE BALANCES($ in millions) | ||||||||||||||||||||||||
Loans | $ | 4,599 | $ | 4,768 | $ | 4,896 | $ | 5,011 | $ | 5,173 | (11 | ) | ||||||||||||
Investment securities | 1,625 | 1,354 | 1,411 | 1,532 | 1,518 | 7 | ||||||||||||||||||
Earning assets | 6,902 | 6,680 | 6,676 | 6,854 | 7,085 | (3 | ) | |||||||||||||||||
Total assets | 7,595 | 7,338 | 7,522 | 7,704 | 7,946 | (4 | ) | |||||||||||||||||
Deposits | 6,560 | 6,294 | 6,257 | 6,375 | 6,570 | — | ||||||||||||||||||
Shareholders’ equity | 670 | 649 | 855 | 912 | 945 | (29 | ) | |||||||||||||||||
Common shares — basic(thousands) | 92,330 | 94,918 | 94,679 | 94,524 | 94,390 | |||||||||||||||||||
Common shares — diluted(thousands) | 92,330 | 94,918 | 94,679 | 94,524 | 94,390 | |||||||||||||||||||
AT PERIOD END($ in millions) | ||||||||||||||||||||||||
Loans * | $ | 4,194 | $ | 4,604 | $ | 4,760 | $ | 4,873 | $ | 4,992 | (16 | ) | ||||||||||||
Investment securities | 1,884 | 1,490 | 1,310 | 1,488 | 1,527 | 23 | ||||||||||||||||||
Total assets | 7,974 | 7,443 | 7,013 | 7,652 | 7,837 | 2 | ||||||||||||||||||
Deposits | 6,598 | 6,469 | 5,999 | 6,330 | 6,488 | 2 | ||||||||||||||||||
Shareholders’ equity | 850 | 636 | 662 | 904 | 926 | (8 | ) | |||||||||||||||||
Common shares outstanding(thousands) | 104,516 | 94,685 | 94,433 | 94,281 | 94,176 |
(1) | Excludes the partial reversal of a previously established provision for fraud-related loan losses of $11.8 million, net of tax expense of $4.6 million in the fourth quarter of 2010. Operating charge-offs also exclude the $11.8 million related partial recovery of the previously charged off amount. (2) Excludes revenue generated by discontinued operations in the first quarter of 2010. (3) Excludes the goodwill impairment charge of $211 million in the third quarter of 2010 and expenses relating to discontinued operations in the first quarter of 2010.(4) 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).(5) Excludes effect of acquisition related intangibles and associated amortization.(6) Annualized. | |
* | 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
2011 | 2010 | |||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | |||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||
Interest revenue — taxable equivalent | $ | 75,965 | $ | 81,215 | $ | 84,360 | $ | 87,699 | $ | 89,849 | ||||||||||
Taxable equivalent adjustment | (435 | ) | (497 | ) | (511 | ) | (500 | ) | (493 | ) | ||||||||||
Interest revenue (GAAP) | $ | 75,530 | $ | 80,718 | $ | 83,849 | $ | 87,199 | $ | 89,356 | ||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||
Net interest revenue — taxable equivalent | $ | 56,392 | $ | 60,132 | $ | 60,014 | $ | 61,627 | $ | 61,279 | ||||||||||
Taxable equivalent adjustment | (435 | ) | (497 | ) | (511 | ) | (500 | ) | (493 | ) | ||||||||||
Net interest revenue (GAAP) | $ | 55,957 | $ | 59,635 | $ | 59,503 | $ | 61,127 | $ | 60,786 | ||||||||||
Provision for loan losses reconciliation | ||||||||||||||||||||
Operating provision for loan losses | $ | 190,000 | $ | 47,750 | $ | 50,500 | $ | 61,500 | $ | 75,000 | ||||||||||
Partial reversal of special fraud-related provision for loan loss | — | (11,750 | ) | — | — | — | ||||||||||||||
Provision for loan losses (GAAP) | $ | 190,000 | $ | 36,000 | $ | 50,500 | $ | 61,500 | $ | 75,000 | ||||||||||
Total revenue reconciliation | ||||||||||||||||||||
Total operating revenue | $ | (121,770 | ) | $ | 24,824 | $ | 22,375 | $ | 11,706 | $ | (2,055 | ) | ||||||||
Taxable equivalent adjustment | (435 | ) | (497 | ) | (511 | ) | (500 | ) | (493 | ) | ||||||||||
Partial reversal of special fraud-related provision for loan loss | — | 11,750 | — | — | — | |||||||||||||||
Total revenue (GAAP) | $ | (122,205 | ) | $ | 36,077 | $ | 21,864 | $ | 11,206 | $ | (2,548 | ) | ||||||||
Expense reconciliation | ||||||||||||||||||||
Operating expense | $ | 115,271 | $ | 64,918 | $ | 64,906 | $ | 103,657 | $ | 54,820 | ||||||||||
Noncash goodwill impairment charge | — | — | 210,590 | — | — | |||||||||||||||
Operating expense (GAAP) | $ | 115,271 | $ | 64,918 | $ | 275,496 | $ | 103,657 | $ | 54,820 | ||||||||||
Loss from continuing operations before taxes reconciliation | ||||||||||||||||||||
Operating loss from continuing operations before taxes | $ | (237,041 | ) | $ | (40,094 | ) | $ | (42,531 | ) | $ | (91,951 | ) | $ | (56,875 | ) | |||||
Taxable equivalent adjustment | (435 | ) | (497 | ) | (511 | ) | (500 | ) | (493 | ) | ||||||||||
Noncash goodwill impairment charge | — | — | (210,590 | ) | — | — | ||||||||||||||
Partial reversal of special fraud-related provision for loan loss | — | 11,750 | — | — | — | |||||||||||||||
Loss from continuing operations before taxes (GAAP) | $ | (237,476 | ) | $ | (28,841 | ) | $ | (253,632 | ) | $ | (92,451 | ) | $ | (57,368 | ) | |||||
Income tax benefit reconciliation | ||||||||||||||||||||
Operating income tax benefit | $ | (94,555 | ) | $ | (16,520 | ) | $ | (16,706 | ) | $ | (32,419 | ) | $ | (22,417 | ) | |||||
Taxable equivalent adjustment | (435 | ) | (497 | ) | (511 | ) | (500 | ) | (493 | ) | ||||||||||
Partial reversal of special fraud-related provision for loan loss | — | 4,571 | — | — | — | |||||||||||||||
Income tax benefit (GAAP) | $ | (94,990 | ) | $ | (12,446 | ) | $ | (17,217 | ) | $ | (32,919 | ) | $ | (22,910 | ) | |||||
Diluted loss from continuing operations per common share reconciliation | ||||||||||||||||||||
Diluted operating loss from continuing operations per common share | $ | (1.57 | ) | $ | (.28 | ) | $ | (.30 | ) | $ | (.66 | ) | $ | (.39 | ) | |||||
Noncash goodwill impairment charge | — | — | (2.22 | ) | — | — | ||||||||||||||
Partial reversal of special fraud-related provision for loan loss | — | .08 | — | — | — | |||||||||||||||
Diluted loss from continuing operations per common share (GAAP) | $ | (1.57 | ) | $ | (.20 | ) | $ | (2.52 | ) | $ | (.66 | ) | $ | (.39 | ) | |||||
Book value per common share reconciliation | ||||||||||||||||||||
Tangible book value per common share | $ | 2.89 | $ | 4.76 | $ | 5.05 | $ | 5.39 | $ | 5.62 | ||||||||||
Effect of goodwill and other intangibles | .07 | .08 | .09 | 2.32 | 2.33 | |||||||||||||||
Book value per common share (GAAP) | $ | 2.96 | $ | 4.84 | $ | 5.14 | $ | 7.71 | $ | 7.95 | ||||||||||
Efficiency ratio from continuing operations reconciliation | ||||||||||||||||||||
Operating efficiency ratio from continuing operations | 169.08 | % | 89.45 | % | 89.38 | % | 141.60 | % | 75.22 | % | ||||||||||
Noncash goodwill impairment charge | — | — | 290.00 | — | — | |||||||||||||||
Efficiency ratio from continuing operations (GAAP) | 169.08 | % | 89.45 | % | 379.38 | % | 141.60 | % | 75.22 | % | ||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||
Tangible common equity to assets | 5.51 | % | 6.35 | % | 6.78 | % | 6.91 | % | 7.13 | % | ||||||||||
Effect of preferred equity | 3.22 | 2.40 | 2.41 | 2.35 | 2.26 | |||||||||||||||
Tangible equity to assets | 8.73 | 8.75 | 9.19 | 9.26 | 9.39 | |||||||||||||||
Effect of goodwill and other intangibles | .09 | .10 | 2.18 | 2.58 | 2.51 | |||||||||||||||
Equity to assets (GAAP) | 8.82 | % | 8.85 | % | 11.37 | % | 11.84 | % | 11.90 | % | ||||||||||
Actual tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||
Tangible common equity to risk-weighted assets | 6.40 | % | 9.05 | % | 9.60 | % | 9.97 | % | 10.03 | % | ||||||||||
Effect of other comprehensive income | (.58 | ) | (.62 | ) | (.81 | ) | (.87 | ) | (.85 | ) | ||||||||||
Effect of deferred tax limitation | (5.10 | ) | (3.34 | ) | (2.94 | ) | (2.47 | ) | (1.75 | ) | ||||||||||
Effect of trust preferred | 1.12 | 1.06 | 1.06 | 1.03 | 1.00 | |||||||||||||||
Effect of preferred equity | 5.97 | 3.52 | 3.51 | 3.41 | 3.29 | |||||||||||||||
Tier I capital ratio (Regulatory) | 7.81 | % | 9.67 | % | 10.42 | % | 11.07 | % | 11.72 | % | ||||||||||
Net charge-offs reconciliation | ||||||||||||||||||||
Operating net charge-offs | $ | 231,574 | $ | 47,668 | $ | 49,998 | $ | 61,323 | $ | 56,668 | ||||||||||
Subsequent partial recovery of fraud-related charge-off | — | (11,750 | ) | — | — | — | ||||||||||||||
Net charge-offs (GAAP) | $ | 231,574 | $ | 35,918 | $ | 49,998 | $ | 61,323 | $ | 56,668 | ||||||||||
Net charge-offs to average loans reconciliation | ||||||||||||||||||||
Operating net charge-offs to average loans | 20.71 | % | 4.03 | % | 4.12 | % | 4.98 | % | 4.51 | % | ||||||||||
Subsequent partial recovery of fraud-related charge-off | — | (1.00 | ) | — | — | — | ||||||||||||||
Net charge-offs to average loans (GAAP) | 20.71 | % | 3.03 | % | 4.12 | % | 4.98 | % | 4.51 | % | ||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End(1)
Financial Highlights
Loan Portfolio Composition at Period-End(1)
2011 | 2010 | Linked | Year over | |||||||||||||||||||||||||
First | Fourth | Third | Second | First | Quarter | Year | ||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 1,692 | $ | 1,761 | $ | 1,781 | $ | 1,780 | $ | 1,765 | $ | (69 | ) | $ | (73 | ) | ||||||||||||
Commercial construction | 213 | 297 | 310 | 342 | 357 | (84 | ) | (144 | ) | |||||||||||||||||||
Commercial & industrial | 431 | 441 | 456 | 441 | 381 | (10 | ) | 50 | ||||||||||||||||||||
Total commercial | 2,336 | 2,499 | 2,547 | 2,563 | 2,503 | (163 | ) | (167 | ) | |||||||||||||||||||
Residential construction | 550 | 695 | 764 | 820 | 960 | (145 | ) | (410 | ) | |||||||||||||||||||
Residential mortgage | 1,187 | 1,279 | 1,316 | 1,356 | 1,390 | (92 | ) | (203 | ) | |||||||||||||||||||
Consumer / installment | 121 | 131 | 133 | 134 | 139 | (10 | ) | (18 | ) | |||||||||||||||||||
Total loans | $ | 4,194 | $ | 4,604 | $ | 4,760 | $ | 4,873 | $ | 4,992 | (410 | ) | (798 | ) | ||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
Atlanta MSA | $ | 1,179 | $ | 1,310 | $ | 1,365 | $ | 1,373 | $ | 1,404 | (131 | ) | (225 | ) | ||||||||||||||
Gainesville MSA | 282 | 312 | 316 | 343 | 372 | (30 | ) | (90 | ) | |||||||||||||||||||
North Georgia | 1,531 | 1,689 | 1,755 | 1,808 | 1,814 | (158 | ) | (283 | ) | |||||||||||||||||||
Western North Carolina | 640 | 702 | 719 | 738 | 756 | (62 | ) | (116 | ) | |||||||||||||||||||
Coastal Georgia | 312 | 335 | 345 | 356 | 388 | (23 | ) | (76 | ) | |||||||||||||||||||
East Tennessee | 250 | 256 | 260 | 255 | 258 | (6 | ) | (8 | ) | |||||||||||||||||||
Total loans | $ | 4,194 | $ | 4,604 | $ | 4,760 | $ | 4,873 | $ | 4,992 | (410 | ) | (798 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 116 | $ | 174 | $ | 190 | $ | 214 | $ | 290 | (58 | ) | (174 | ) | ||||||||||||||
Land loans | 69 | 99 | 104 | 110 | 124 | (30 | ) | (55 | ) | |||||||||||||||||||
Lot loans | 228 | 275 | 303 | 311 | 321 | (47 | ) | (93 | ) | |||||||||||||||||||
Total | 413 | 548 | 597 | 635 | 735 | (135 | ) | (322 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 88 | 97 | 109 | 125 | 153 | (9 | ) | (65 | ) | |||||||||||||||||||
Sold | 49 | 50 | 58 | 60 | 72 | (1 | ) | (23 | ) | |||||||||||||||||||
Total | 137 | 147 | 167 | 185 | 225 | (10 | ) | (88 | ) | |||||||||||||||||||
Total residential construction | $ | 550 | $ | 695 | $ | 764 | $ | 820 | $ | 960 | (145 | ) | (410 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION — ATLANTA MSA | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 22 | $ | 30 | $ | 34 | $ | 40 | $ | 66 | (8 | ) | (44 | ) | ||||||||||||||
Land loans | 19 | 23 | 27 | 32 | 43 | (4 | ) | (24 | ) | |||||||||||||||||||
Lot loans | 24 | 32 | 45 | 39 | 47 | (8 | ) | (23 | ) | |||||||||||||||||||
Total | 65 | 85 | 106 | 111 | 156 | (20 | ) | (91 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 34 | 38 | 42 | 48 | 58 | (4 | ) | (24 | ) | |||||||||||||||||||
Sold | 11 | 10 | 11 | 10 | 14 | 1 | (3 | ) | ||||||||||||||||||||
Total | 45 | 48 | 53 | 58 | 72 | (3 | ) | (27 | ) | |||||||||||||||||||
Total residential construction | $ | 110 | $ | 133 | $ | 159 | $ | 169 | $ | 228 | (23 | ) | (118 | ) | ||||||||||||||
(1) | Excludes total loans of $63.3 million, $68.2 million, $75.2 million, $80.8 million and $79.5 million as of March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, 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)
First Quarter 2011(2) | Fourth Quarter 2010 | Third Quarter 2010 | ||||||||||||||||||||||||||||||||||
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) | $ | 20,648 | $ | 7,886 | $ | 28,534 | $ | 44,927 | $ | 23,659 | $ | 68,586 | $ | 53,646 | $ | 14,838 | $ | 68,484 | ||||||||||||||||||
Commercial construction | 3,701 | 11,568 | 15,269 | 21,374 | 17,808 | 39,182 | 17,279 | 15,125 | 32,404 | |||||||||||||||||||||||||||
Commercial & industrial | 2,198 | — | 2,198 | 5,611 | — | 5,611 | 7,670 | — | 7,670 | |||||||||||||||||||||||||||
Total commercial | 26,547 | 19,454 | 46,001 | 71,912 | 41,467 | 113,379 | 78,595 | 29,963 | 108,558 | |||||||||||||||||||||||||||
Residential construction | 32,038 | 25,807 | 57,845 | 54,505 | 78,231 | 132,736 | 79,321 | 73,206 | 152,527 | |||||||||||||||||||||||||||
Residential mortgage | 23,711 | 9,117 | 32,828 | 51,083 | 22,510 | 73,593 | 58,107 | 26,795 | 84,902 | |||||||||||||||||||||||||||
Consumer / installment | 1,473 | — | 1,473 | 1,594 | — | 1,594 | 1,743 | — | 1,743 | |||||||||||||||||||||||||||
Total NPAs | $ | 83,769 | $ | 54,378 | $ | 138,147 | $ | 179,094 | $ | 142,208 | $ | 321,302 | $ | 217,766 | $ | 129,964 | $ | 347,730 | ||||||||||||||||||
Balance as a % of Unpaid Principal | 57.3 | % | 30.3 | % | 42.4 | % | 67.2 | % | 64.4 | % | 65.9 | % | 70.0 | % | 65.9 | % | 68.4 | % | ||||||||||||||||||
NPAs BY MARKET | ||||||||||||||||||||||||||||||||||||
Atlanta MSA | $ | 21,501 | $ | 16,913 | $ | 38,414 | $ | 48,289 | $ | 41,154 | $ | 89,443 | $ | 65,304 | $ | 32,785 | $ | 98,089 | ||||||||||||||||||
Gainesville MSA | 4,332 | 2,157 | 6,489 | 5,171 | 9,273 | 14,444 | 11,905 | 5,685 | 17,590 | |||||||||||||||||||||||||||
North Georgia | 30,214 | 23,094 | 53,308 | 83,551 | 66,211 | 149,762 | 92,295 | 67,439 | 159,734 | |||||||||||||||||||||||||||
Western North Carolina | 18,849 | 7,802 | 26,651 | 25,832 | 11,553 | 37,385 | 31,545 | 11,559 | 43,104 | |||||||||||||||||||||||||||
Coastal Georgia | 5,847 | 3,781 | 9,628 | 11,145 | 11,901 | 23,046 | 10,611 | 10,951 | 21,562 | |||||||||||||||||||||||||||
East Tennessee | 3,026 | 631 | 3,657 | 5,106 | 2,116 | 7,222 | 6,106 | 1,545 | 7,651 | |||||||||||||||||||||||||||
Total NPAs | $ | 83,769 | $ | 54,378 | $ | 138,147 | $ | 179,094 | $ | 142,208 | $ | 321,302 | $ | 217,766 | $ | 129,964 | $ | 347,730 | ||||||||||||||||||
NPA ACTIVITY Beginning Balance | $ | 179,094 | $ | 142,208 | $ | 321,302 | $ | 217,766 | $ | 129,964 | $ | 347,730 | $ | 224,335 | $ | 123,910 | $ | 348,245 | ||||||||||||||||||
Loans placed on non-accrual | 54,730 | — | 54,730 | 81,023 | — | 81,023 | 119,783 | — | 119,783 | |||||||||||||||||||||||||||
Payments received | (3,550 | ) | — | (3,550 | ) | (7,250 | ) | — | (7,250 | ) | (11,469 | ) | — | (11,469 | ) | |||||||||||||||||||||
Loan charge-offs | (43,969 | ) | — | (43,969 | ) | (47,913 | ) | — | (47,913 | ) | (52,647 | ) | — | (52,647 | ) | |||||||||||||||||||||
Foreclosures | (17,052 | ) | 17,052 | — | (61,432 | ) | 61,432 | — | (59,844 | ) | 59,844 | — | ||||||||||||||||||||||||
Capitalized costs | — | 270 | 270 | — | 170 | 170 | — | 601 | 601 | |||||||||||||||||||||||||||
Note / property sales | (11,400 | ) | (44,547 | ) | (55,947 | ) | (3,100 | ) | (33,509 | ) | (36,609 | ) | (2,392 | ) | (40,203 | ) | (42,595 | ) | ||||||||||||||||||
Loans held for sale | (74,084 | ) | — | (74,084 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Write downs | — | (48,585 | ) | (48,585 | ) | — | (8,031 | ) | (8,031 | ) | — | (7,051 | ) | (7,051 | ) | |||||||||||||||||||||
Net losses on sales | — | (12,020 | ) | (12,020 | ) | — | (7,818 | ) | (7,818 | ) | — | (7,137 | ) | (7,137 | ) | |||||||||||||||||||||
Ending Balance | $ | 83,769 | $ | 54,378 | $ | 138,147 | $ | 179,094 | $ | 142,208 | $ | 321,302 | $ | 217,766 | $ | 129,964 | $ | 347,730 | ||||||||||||||||||
First Quarter 2011(3) | Fourth Quarter 2010(4) | Third Quarter 2010 | ||||||||||||||||||||||
Net Charge- | Net Charge- | Net Charge- | ||||||||||||||||||||||
Offs to | Offs to | Offs to | ||||||||||||||||||||||
Net | Average | Net | Average | Net | Average | |||||||||||||||||||
(in thousands) | Charge-Offs | Loans(5) | Charge-Offs | Loans(5) | Charge-Offs | Loans(5) | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 48,607 | 11.07 | % | $ | 6,493 | 1.45 | % | $ | 14,212 | 3.16 | % | ||||||||||||
Commercial construction | 49,715 | 76.95 | 3,924 | 5.12 | 1,972 | 2.40 | ||||||||||||||||||
Commercial & industrial | 4,040 | 3.64 | 2,891 | 2.54 | 1,207 | 1.07 | ||||||||||||||||||
Total commercial | 102,362 | 16.66 | 13,308 | 2.09 | 17,391 | 2.70 | ||||||||||||||||||
Residential construction | 92,138 | 58.20 | 24,497 | 13.28 | 23,934 | 11.99 | ||||||||||||||||||
Residential mortgage | 36,383 | 11.62 | 9,176 | 2.80 | 7,695 | 2.29 | ||||||||||||||||||
Consumer / installment | 691 | 2.16 | 687 | 2.06 | 978 | 2.90 | ||||||||||||||||||
Total | $ | 231,574 | 20.71 | $ | 47,668 | 4.03 | $ | 49,998 | 4.12 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
Atlanta MSA | $ | 56,489 | 17.86 | % | $ | 15,222 | 4.48 | % | $ | 13,753 | 3.97 | % | ||||||||||||
Gainesville MSA | 8,616 | 11.93 | 3,434 | 4.37 | 1,143 | 1.40 | ||||||||||||||||||
North Georgia | 123,305 | 29.66 | 18,537 | 4.26 | 26,554 | 5.92 | ||||||||||||||||||
Western North Carolina | 26,447 | 15.61 | 5,154 | 2.87 | 5,509 | 2.99 | ||||||||||||||||||
Coastal Georgia | 12,003 | 14.80 | 3,670 | 4.27 | 2,702 | 3.05 | ||||||||||||||||||
East Tennessee | 4,714 | 7.47 | 1,651 | 2.53 | 337 | .52 | ||||||||||||||||||
Total | $ | 231,574 | 20.71 | $ | 47,668 | 4.03 | $ | 49,998 | 4.12 | |||||||||||||||
(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) | The NPA activity shown for the first quarter of 2011 is presented with all activity related to loans transferred to the loans held for sale classification on one line as if those loans were transferred to held for sale at the beginning of the period. | |
(3) | Includes charge-offs on loans related to United’s previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first quarter of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first quarter of 2011. | |
(4) | North Carolina residential construction net charge-offs for the fourth quarter of 2010 exclude a $11.8 million partial recovery of a 2007 fraud-related charge-off. | |
(5) | Annualized. |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality — Net Charge-Offs First Quarter 2011(1)
Financial Highlights
Credit Quality — Net Charge-Offs First Quarter 2011(1)
Asset Disposition Plan | ||||||||||||||||||||||||
Bulk Loan Sale (2) | First Quarter | |||||||||||||||||||||||
Performing | Nonperforming | Other Bulk Loan | Foreclosure | Other Net | 2011 Net Charge- | |||||||||||||||||||
(in thousands) | Loans | Loans | Sales(3) | Charge-Offs(4) | Charge-Offs | Offs | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 29,451 | $ | 11,091 | $ | 3,318 | $ | 1,905 | $ | 2,842 | $ | 48,607 | ||||||||||||
Commercial construction | 32,530 | 15,328 | 292 | 419 | 1,146 | 49,715 | ||||||||||||||||||
Commercial & industrial | 365 | 2,303 | 859 | — | 513 | 4,040 | ||||||||||||||||||
Total commercial | 62,346 | 28,722 | 4,469 | 2,324 | 4,501 | 102,362 | ||||||||||||||||||
Residential construction | 43,018 | 23,459 | 3,325 | 11,693 | 10,643 | 92,138 | ||||||||||||||||||
Residential mortgage | 13,917 | 14,263 | 1,676 | 1,538 | 4,989 | 36,383 | ||||||||||||||||||
Consumer / installment | 86 | 168 | 30 | 24 | 383 | 691 | ||||||||||||||||||
Total | $ | 119,367 | $ | 66,612 | $ | 9,500 | $ | 15,579 | $ | 20,516 | $ | 231,574 | ||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
Atlanta MSA | $ | 37,186 | $ | 8,545 | $ | 1,428 | $ | 6,034 | $ | 3,296 | $ | 56,489 | ||||||||||||
Gainesville MSA | 3,563 | 2,442 | 957 | 700 | 954 | 8,616 | ||||||||||||||||||
North Georgia | 57,969 | 47,699 | 2,508 | 6,585 | 8,544 | 123,305 | ||||||||||||||||||
Western North Carolina | 11,138 | 4,743 | 2,415 | 1,402 | 6,749 | 26,447 | ||||||||||||||||||
Coastal Georgia | 6,835 | 2,180 | 2,013 | 634 | 341 | 12,003 | ||||||||||||||||||
East Tennessee | 2,676 | 1,003 | 179 | 224 | 632 | 4,714 | ||||||||||||||||||
Total | $ | 119,367 | $ | 66,612 | $ | 9,500 | $ | 15,579 | $ | 20,516 | $ | 231,574 | ||||||||||||
(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) | Charge-offs totaling $186 million were recognized on the bulk loan sale in the first quarter of 2011. The loans were transferred to the loans held for sale category in anticipation of the second quarter bulk loan sale that was completed on April 18, 2011. |
(3) | Losses on smaller bulk sale transactions completed during the first quarter of 2011. |
(4) | Loan charge-offs recognized in the first quarter of 2011 related to loans transferred to foreclosed properties. Such charge-offs were elevated in the first quarter as a result of the asset disposition plan, which called for aggressive write downs to expedite sales in the second and third quarters of 2011. |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality — Bulk Loan Sale Summary(1)
Financial Highlights
Credit Quality — Bulk Loan Sale Summary(1)
Performing Loans | Nonperforming Loans | Total Loans | ||||||||||||||||||||||||||||||||||
Carrying | Charge- | Loans Held | Carrying | Charge- | Loans Held | Carrying | Charge- | Loans Held | ||||||||||||||||||||||||||||
(in thousands) | Amount(2) | Offs(3) | for Sale(4) | Amount (2) | Offs(3) | for Sale (4) | Amount(2) | Offs(3) | for Sale(4) | |||||||||||||||||||||||||||
BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 40,902 | $ | 29,451 | $ | 11,451 | $ | 17,202 | $ | 11,091 | $ | 6,111 | $ | 58,104 | $ | 40,542 | $ | 17,562 | ||||||||||||||||||
Commercial construction | 45,490 | 32,530 | 12,960 | 22,440 | 15,328 | 7,112 | 67,930 | 47,858 | 20,072 | |||||||||||||||||||||||||||
Commercial & industrial | 504 | 365 | 139 | 3,398 | 2,303 | 1,095 | 3,902 | 2,668 | 1,234 | |||||||||||||||||||||||||||
Total commercial | 86,896 | 62,346 | 24,550 | 43,040 | 28,722 | 14,318 | 129,936 | 91,068 | 38,868 | |||||||||||||||||||||||||||
Residential construction | 59,747 | 43,018 | 16,729 | 35,509 | 23,459 | 12,050 | 95,256 | 66,477 | 28,779 | |||||||||||||||||||||||||||
Residential mortgage | 19,342 | 13,917 | 5,425 | 21,717 | 14,263 | 7,454 | 41,059 | 28,180 | 12,879 | |||||||||||||||||||||||||||
Consumer / installment | 120 | 86 | 34 | 237 | 168 | 69 | 357 | 254 | 103 | |||||||||||||||||||||||||||
Total | $ | 166,105 | $ | 119,367 | $ | 46,738 | $ | 100,503 | $ | 66,612 | $ | 33,891 | $ | 266,608 | $ | 185,979 | $ | 80,629 | ||||||||||||||||||
BY MARKET | ||||||||||||||||||||||||||||||||||||
Atlanta MSA | $ | 51,647 | $ | 37,186 | $ | 14,461 | $ | 13,755 | $ | 8,545 | $ | 5,210 | $ | 65,402 | $ | 45,731 | $ | 19,671 | ||||||||||||||||||
Gainesville MSA | 4,949 | 3,563 | 1,386 | 3,695 | 2,442 | 1,253 | 8,644 | 6,005 | 2,639 | |||||||||||||||||||||||||||
North Georgia | 80,831 | 57,969 | 22,862 | 70,901 | 47,699 | 23,202 | 151,732 | 105,668 | 46,064 | |||||||||||||||||||||||||||
Western North Carolina | 15,468 | 11,138 | 4,330 | 7,228 | 4,743 | 2,485 | 22,696 | 15,881 | 6,815 | |||||||||||||||||||||||||||
Coastal Georgia | 9,493 | 6,835 | 2,658 | 3,528 | 2,180 | 1,348 | 13,021 | 9,015 | 4,006 | |||||||||||||||||||||||||||
East Tennessee | 3,717 | 2,676 | 1,041 | 1,396 | 1,003 | 393 | 5,113 | 3,679 | 1,434 | |||||||||||||||||||||||||||
Total | $ | 166,105 | $ | 119,367 | $ | 46,738 | $ | 100,503 | $ | 66,612 | $ | 33,891 | $ | 266,608 | $ | 185,979 | $ | 80,629 | ||||||||||||||||||
(1) | This schedule presents a summary of classified loans included in the bulk loan sale transaction that closed on April 18, 2011. | |
(2) | This column represents the book value, or carrying amount, of the loans prior to charge offs to mark loans to expected proceeds from sale. | |
(3) | This column represents the charge-offs required to adjust the loan balances to the expected proceeds from the sale based on indicative bids received from prospective buyers, including principal payments received or committed advances made after the cutoff date through March 31, 2011 that are part of the settlement. | |
(4) | This column represents the expected proceeds from the bulk sale based on indicative bids received from prospective buyers and equals the balance shown on the consolidated balance sheet as loans held for sale. |
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income(Unaudited)
Consolidated Statement of Income(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands, except per share data) | 2011 | 2010 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 61,107 | $ | 72,215 | ||||
Investment securities, including tax exempt of $259 and $311 | 13,604 | 16,203 | ||||||
Federal funds sold, commercial paper and deposits in banks | 819 | 938 | ||||||
Total interest revenue | 75,530 | 89,356 | ||||||
Interest expense: | ||||||||
Deposits: | ||||||||
NOW | 1,324 | 1,854 | ||||||
Money market | 2,028 | 1,757 | ||||||
Savings | 77 | 84 | ||||||
Time | 11,732 | 20,198 | ||||||
Total deposit interest expense | 15,161 | 23,893 | ||||||
Federal funds purchased, repurchase agreements and other short-term borrowings | 1,042 | 1,038 | ||||||
Federal Home Loan Bank advances | 590 | 977 | ||||||
Long-term debt | 2,780 | 2,662 | ||||||
Total interest expense | 19,573 | 28,570 | ||||||
Net interest revenue | 55,957 | 60,786 | ||||||
Provision for loan losses | 190,000 | 75,000 | ||||||
Net interest revenue after provision for loan losses | (134,043 | ) | (14,214 | ) | ||||
Fee revenue: | ||||||||
Service charges and fees | 6,720 | 7,447 | ||||||
Mortgage loan and other related fees | 1,494 | 1,479 | ||||||
Brokerage fees | 677 | 567 | ||||||
Securities gains, net | 55 | 61 | ||||||
Other | 2,892 | 2,112 | ||||||
Total fee revenue | 11,838 | 11,666 | ||||||
Total revenue | (122,205 | ) | (2,548 | ) | ||||
Operating expenses: | ||||||||
Salaries and employee benefits | 24,924 | 24,360 | ||||||
Communications and equipment | 3,344 | 3,273 | ||||||
Occupancy | 4,074 | 3,814 | ||||||
Advertising and public relations | 978 | 1,043 | ||||||
Postage, printing and supplies | 1,118 | 1,225 | ||||||
Professional fees | 3,330 | 1,943 | ||||||
Foreclosed property | 64,899 | 10,813 | ||||||
FDIC assessments and other regulatory charges | 5,413 | 3,626 | ||||||
Amortization of intangibles | 762 | 802 | ||||||
Other | 6,429 | 3,921 | ||||||
Total operating expenses | 115,271 | 54,820 | ||||||
Loss from continuing operations before income taxes | (237,476 | ) | (57,368 | ) | ||||
Income tax benefit | (94,990 | ) | (22,910 | ) | ||||
Net loss from continuing operations | (142,486 | ) | (34,458 | ) | ||||
(Loss) income from discontinued operations, net of income taxes | — | (101 | ) | |||||
Gain from sale of subsidiary, net of income taxes and selling costs | — | 1,266 | ||||||
Net loss | (142,486 | ) | (33,293 | ) | ||||
Preferred stock dividends and discount accretion | 2,778 | 2,572 | ||||||
Net loss available to common shareholders | $ | (145,264 | ) | $ | (35,865 | ) | ||
Loss from continuing operations per common share — Basic / Diluted | $ | (1.57 | ) | $ | (.39 | ) | ||
Loss per common share — Basic / Diluted | (1.57 | ) | (.38 | ) | ||||
Weighted average common shares outstanding — Basic / Diluted | 92,330 | 94,390 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
Consolidated Balance Sheet
March 31, | December 31, | March 31, | ||||||||||
(in thousands, except share and per share data) | 2011 | 2010 | 2010 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 153,891 | $ | 95,994 | $ | 105,613 | ||||||
Interest-bearing deposits in banks | 465,656 | 111,901 | 99,893 | |||||||||
Federal funds sold, commercial paper and short-term investments | 470,087 | 441,562 | 183,049 | |||||||||
Cash and cash equivalents | 1,089,634 | 649,457 | 388,555 | |||||||||
Securities available for sale | 1,638,494 | 1,224,417 | 1,526,589 | |||||||||
Securities held to maturity (fair value $248,361 and $267,988) | 245,430 | 265,807 | — | |||||||||
Loans held for sale | 80,629 | — | — | |||||||||
Mortgage loans held for sale | 25,364 | 35,908 | 21,998 | |||||||||
Loans, net of unearned income | 4,194,372 | 4,604,126 | 4,992,045 | |||||||||
Less allowance for loan losses | 133,121 | 174,695 | 173,934 | |||||||||
Loans, net | 4,061,251 | 4,429,431 | 4,818,111 | |||||||||
Assets covered by loss sharing agreements with the FDIC | 125,789 | 131,887 | 169,287 | |||||||||
Premises and equipment, net | 179,143 | 178,239 | 181,217 | |||||||||
Accrued interest receivable | 21,687 | 24,299 | 30,492 | |||||||||
Goodwill and other intangible assets | 10,684 | 11,446 | 224,394 | |||||||||
Foreclosed property | 54,378 | 142,208 | 136,275 | |||||||||
Net deferred tax asset | 266,367 | 166,937 | 92,986 | |||||||||
Other assets | 174,742 | 183,160 | 247,114 | |||||||||
Total assets | $ | 7,973,592 | $ | 7,443,196 | $ | 7,837,018 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 864,708 | $ | 793,414 | $ | 740,727 | ||||||
NOW | 1,320,136 | 1,424,781 | 1,344,973 | |||||||||
Money market | 967,938 | 891,252 | 729,283 | |||||||||
Savings | 193,591 | 183,894 | 186,699 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,576,505 | 1,496,700 | 1,643,059 | |||||||||
Greater than $100,000 | 990,289 | 1,002,359 | 1,132,034 | |||||||||
Brokered | 684,581 | 676,772 | 710,813 | |||||||||
Total deposits | 6,597,748 | 6,469,172 | 6,487,588 | |||||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 102,107 | 101,067 | 102,480 | |||||||||
Federal Home Loan Bank advances | 55,125 | 55,125 | 114,303 | |||||||||
Long-term debt | 150,166 | 150,146 | 150,086 | |||||||||
Unsettled securities purchases | 177,532 | — | 17,588 | |||||||||
Accrued expenses and other liabilities | 40,766 | 32,171 | 39,078 | |||||||||
Total liabilities | 7,123,444 | 6,807,681 | 6,911,123 | |||||||||
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 | 176,049 | 175,711 | 174,727 | |||||||||
Series D; $1,000 stated value; 16,613 shares issued and outstanding | 16,613 | — | — | |||||||||
Series F; $1,000 stated value; 195,872 shares issued and outstanding | 195,872 | — | — | |||||||||
Series G; $1,000 stated value; 151,185 shares issued and outstanding | 151,185 | — | — | |||||||||
Common stock, $1 par value; 200,000,000 shares authorized; 104,515,553, 94,685,003 and 94,175,857 shares issued and outstanding | 104,516 | 94,685 | 94,176 | |||||||||
Common stock issuable; 397,138, 336,437 and 262,002 shares | 3,681 | 3,894 | 4,127 | |||||||||
Capital surplus | 655,350 | 665,496 | 622,803 | |||||||||
Accumulated deficit | (480,831 | ) | (335,567 | ) | (15,481 | ) | ||||||
Accumulated other comprehensive income | 27,496 | 31,079 | 45,326 | |||||||||
Total shareholders’ equity | 850,148 | 635,515 | 925,895 | |||||||||
Total liabilities and shareholders’ equity | $ | 7,973,592 | $ | 7,443,196 | $ | 7,837,018 | ||||||
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2011 | 2010 | |||||||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||||||
(dollars in thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1)(2) | $ | 4,598,860 | $ | 61,070 | 5.39 | % | $ | 5,172,847 | $ | 72,219 | 5.66 | % | ||||||||||||
Taxable securities(3) | 1,599,481 | 13,345 | 3.34 | 1,487,646 | 15,892 | 4.27 | ||||||||||||||||||
Tax-exempt securities(1)(3) | 25,827 | 424 | 6.57 | 30,050 | 509 | 6.78 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 677,453 | 1,126 | .66 | 394,348 | 1,229 | 1.25 | ||||||||||||||||||
Total interest-earning assets | 6,901,621 | 75,965 | 4.45 | 7,084,891 | 89,849 | 5.13 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (169,113 | ) | (187,288 | ) | ||||||||||||||||||||
Cash and due from banks | 134,341 | 104,545 | ||||||||||||||||||||||
Premises and equipment | 179,353 | 181,927 | ||||||||||||||||||||||
Other assets(3) | 548,348 | 762,228 | ||||||||||||||||||||||
Total assets | $ | 7,594,550 | $ | 7,946,303 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,373,142 | $ | 1,324 | .39 | $ | 1,361,696 | $ | 1,854 | .55 | ||||||||||||||
Money market | 928,542 | 2,028 | .89 | 723,470 | 1,757 | .98 | ||||||||||||||||||
Savings | 187,423 | 77 | .17 | 180,448 | 84 | .19 | ||||||||||||||||||
Time less than $100,000 | 1,540,342 | 5,451 | 1.44 | 1,692,652 | 8,891 | 2.13 | ||||||||||||||||||
Time greater than $100,000 | 990,881 | 4,151 | 1.70 | 1,155,776 | 6,770 | 2.38 | ||||||||||||||||||
Brokered | 698,288 | 2,130 | 1.24 | 736,999 | 4,537 | 2.50 | ||||||||||||||||||
Total interest-bearing deposits | 5,718,618 | 15,161 | 1.08 | 5,851,041 | 23,893 | 1.66 | ||||||||||||||||||
Federal funds purchased and other borrowings | 101,097 | 1,042 | 4.18 | 102,058 | 1,038 | 4.12 | ||||||||||||||||||
Federal Home Loan Bank advances | 55,125 | 590 | 4.34 | 114,388 | 977 | 3.46 | ||||||||||||||||||
Long-term debt | 150,157 | 2,780 | 7.51 | 150,078 | 2,662 | 7.19 | ||||||||||||||||||
Total borrowed funds | 306,379 | 4,412 | 5.84 | 366,524 | 4,677 | 5.18 | ||||||||||||||||||
Total interest-bearing liabilities | 6,024,997 | 19,573 | 1.32 | 6,217,565 | 28,570 | 1.86 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 841,351 | 718,975 | ||||||||||||||||||||||
Other liabilities | 58,634 | 64,337 | ||||||||||||||||||||||
Total liabilities | 6,924,982 | 7,000,877 | ||||||||||||||||||||||
Shareholders’ equity | 669,568 | 945,426 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,594,550 | $ | 7,946,303 | ||||||||||||||||||||
Net interest revenue | $ | 56,392 | $ | 61,279 | ||||||||||||||||||||
Net interest-rate spread | 3.13 | % | 3.27 | % | ||||||||||||||||||||
Net interest margin(4) | 3.30 | % | 3.49 | % | ||||||||||||||||||||
(1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate. | |
(2) | Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale. | |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized gains of $27.2 million in 2011 and $43.2 million in 2010 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. |