Exhibit 99.1
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For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2265
Rex_Schuette@ucbi.com
Rex S. Schuette
Chief Financial Officer
(706) 781-2265
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
12% GAIN IN DILUTED OPERATING EARNINGS PER SHARE
FOR FOURTH QUARTER 2005
12% GAIN IN DILUTED OPERATING EARNINGS PER SHARE
FOR FOURTH QUARTER 2005
HIGHLIGHTS:
• | Record Fourth Quarter Earnings Diluted Operating Earnings Per Share of $.38 — Up 12% Net Operating Income of $15.2 Million — Up 18% Return on Tangible Equity of 18.20% |
• | Strong Loan Demand, Rise in Net Interest Margin and Fee Revenue Drove Performance |
BLAIRSVILLE, GA, January 24, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third largest bank holding company, today announced record financial results for the fourth quarter of 2005. Compared with the fourth quarter of 2004, the company achieved a 20% increase in total revenue, an 18% rise in net operating income and a 12% gain in diluted operating earnings per share.
For the fourth quarter of 2005, net operating income rose to $15.2 million compared with $12.9 million a year earlier. Diluted operating earnings per share increased to $.38 from $.34 a year ago. Total revenue, on a taxable equivalent basis, was $64.8 million compared with $54.1 million for the fourth quarter of 2004. Return on tangible equity was 18.20% and return on assets was 1.05%, compared with 19.96% and 1.07%, respectively, a year ago.
“Loan and deposit growth was strong across all markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “Total assets at year-end were $5.9 billion, a 15% increase from a year ago. Loans increased $144 million during the fourth quarter, or 14% on an annualized basis, and helped drive the increase in net interest revenue. Our net interest margin rose to 4.20%, up 15 basis points from a year ago and up three basis points from last quarter, as increasing short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet. Fee revenue, excluding securities losses taken in the fourth quarter of 2005, was up 12%, reflecting increases in nearly every category.”
For the year, net operating income totaled $56.7 million, a 20% increase compared with $47.2 million for 2004. Diluted operating earnings per share of $1.43 increased 13% from $1.27 last year. Total revenue, on a taxable equivalent basis, was $245.4 million, up 25% from $196.5 million a year ago. Return on tangible equity was 18.99% and return on assets was 1.04%, compared with 19.74% and 1.07% a year ago, respectively. “Once again we met our performance goals of double-digit earnings per share growth and a return on tangible equity above 18% for the year,” Tallent said. “This year was exceptional. We took an opportunity to leverage our strong earnings performance by making strategic investments in the future growth of our company through a significant de novo expansion. We grew deposits faster than loans while expanding our margin. We raised additional capital through a very successful equity offering during the fourth quarter. And most importantly, this was all done while continuing to meet our primary financial goals,” added Tallent.
Net operating income excludes merger-related charges. In the fourth quarter of 2004, pre-tax merger charges of $406,000 were incurred related to the acquisitions of Eagle National Bank and Liberty National Bank. Including these merger-related charges, reported net income for the fourth quarter of 2004 was $12.6 million, diluted earnings per share was $.33 and return on equity was 14.15%. For the full year 2004, pre-tax merger-related charges were $870,000, which also included $464,000 related to the second quarter acquisition of 1st Community Bank. For the year, reported net income was $46.6 million, diluted earnings per share was $1.25, and return on equity was 14.39%.
During the fourth quarter, United Community Banks completed the sale of 1,552,500 shares of common stock in a secondary offering that raised $40.5 million of capital. “This is a significant milestone and our first public equity offering,” stated Tallent. “We’re very pleased with the investor community’s positive response. This additional capital will allow us to continue to pursue and execute our successful balanced growth strategy.”
At December 31, 2005, total loans were $4.4 billion, up $663 million, or 18%, from a year ago. All of the loan growth for 2005 was organic, which included growth from a significant de novo expansion in Hall County, Georgia. “Loan demand continues to be strong across all markets, leading to excellent growth opportunities,” Tallent said. “Organic growth, with an uncompromising focus on sound credit quality, is at the core of our balanced growth strategy and is further supported by our focused geographic expansion. We find the right people and build around them, usually adding two to four de novo offices a year.” Tallent continued, “Earlier this year, we entered Gainesville by partnering with three local and highly respected banking executives to form United Community Bank — Hall County. Since opening for business in May, this team has added more than $245 million in loans and $130 million in deposits. We now have 78 staff and four banking offices, including the main office located in downtown Gainesville, and plan to open the fifth banking office by early 2006.”
“In the fourth quarter, we also opened a de novo banking office in Trion located in Chatooga County which complements our Summerville Bank. This followed the third quarter’s expansion of our Fairburn Bank where we opened de novo banking offices in Tyrone and Newnan Lakes located on the southside of metro Atlanta in Fayette and Coweta counties. It is a testimony to the success and strength of our existing franchise that we were able to absorb such a significant de novo undertaking and still deliver on our primary financial goals of consistent, sustainable double-digit growth in earnings per share,” Tallent stated.
“The fourth quarter was outstanding for deposit growth. We added $281 million of deposits, nearly doubling the level needed to fund our strong loan growth of $144 million,” Tallent said. “Our relentless focus on the highest level of customer service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of
75%. This is invaluable in building deposits through customer referrals while also maintaining and growing long-term relationships with existing customers.”
For the fourth quarter, taxable equivalent net interest revenue of $56.9 million was $11.6 million higher, or 26%, than the fourth quarter of 2004. Acquisitions completed in late 2004 added approximately $1.8 million to net interest revenue leaving the core growth rate at 22%. Taxable equivalent net interest margin for the fourth quarter was 4.20% as compared with 4.05% a year ago and 4.17% for the third quarter of 2005. “Our balance sheet remains asset sensitive, which allowed us to benefit modestly from the rise in interest rates that produced a slight margin expansion throughout 2005,” Tallent said.
The fourth quarter provision for loan losses was $3.5 million, up $1.5 million from a year earlier and up $100,000 from the third quarter of 2005. Annualized net charge-offs to average loans were 16 basis points for the fourth quarter, compared with 13 basis points for the third quarter of 2005 and 13 basis points for the fourth quarter of 2004. At year-end, non-performing assets totaled $13.0 million compared with $13.6 million at the end of the third quarter of 2005 and $8.7 million a year ago. Non-performing assets as a percentage of total assets were 22 basis points at year-end, compared with 24 basis points at September 30, 2005 and 17 basis points at December 31, 2004. “During the fourth quarter, we resolved several non-performing assets, which slightly increased net charge-offs while lowering non-performing assets,” Tallent said. “Asset quality continues to compare favorably with peer banks and remains well within our tolerance levels. Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success.”
Fee revenue of $11.4 million reflected an increase of $616,000, or 6%, from $10.8 million for the fourth quarter of 2004. “Excluding securities losses in the fourth quarter of 2005, core fee revenue growth from a year ago was $1.3 million, or 12%, with steady growth achieved in nearly every category,” Tallent stated. “Service charges and fees on deposit accounts increased $970,000 to $6.6 million, primarily due to growth in transactions and new accounts resulting from core deposit program and the cross-selling of other products and services. Brokerage fees increased 85% to $789,000 due to strong market activity. Consulting fees of $1.7 million were
down slightly, due to the timing of work completed last year for the documentation and testing of internal controls in our risk management practice,” Tallent added.
Operating expenses of $40.5 million increased $6.8 million, or 20%, from the fourth quarter of 2004. Approximately $4.0 million of this increase related to operating expenses of two banks acquired in the fourth quarter of 2004 and de novo expansion in 2005. Salaries and employee benefit costs of $25.6 million increased $4.0 million, or 19%, from the fourth quarter of 2004 with $2.8 million resulting from acquisitions and de novo expansion. The balance was due to an increase in staff to support business growth and related hiring costs and higher commissions related to the increase in brokerage revenue. Communications and equipment expenses increased $683,000 to $3.6 million due to the acquisitions last year and further investments in technology equipment to support business growth. Advertising and marketing expense rose $463,000 to $2.0 million reflecting the cost of successful initiatives to raise core deposits and continued efforts to generate brand awareness in new markets. Occupancy expense increased $342,000 to $2.7 million reflecting the increase in cost to operate additional banking offices added through acquisitions and de novo expansion. Postage, printing and supplies expense increased $328,000 to $1.4 million reflecting the higher cost of office supplies and courier costs resulting from the growing franchise. The increase in other operating expense was due to acquisitions, losses incurred in the disposal of other real estate and business growth. “Our operating efficiency ratio of 58.80% for the quarter is within our long-term efficiency goal of 58% to 60%, reflecting the success of our recent expansion efforts and the continued strength of our existing franchise,” Tallent said.
On January 19, 2006, the Board of Directors declared a regular first-quarter 2006 cash dividend of $.08 per common share payable April 3, 2006, to shareholders of record as the close of business on March 15, 2006. “This represents an annual cash dividend of $.32 per share and an increase of $.04 per share, or 14%, over the dividends paid for 2005,” Tallent said. “This increase reflects our continued strong performance and commitment to deliver value to our shareholders.”
“Our outlook for 2006 is for operating earnings per share growth within our long-term goal of 12% to 15%, but at the lower end of the range due to the expected dilution related to the equity offering completed during the fourth quarter,” Tallent said. “We anticipate core loan growth will continue to be within our targeted range of 10% to 14%. Also, the current level of our net interest margin could decrease slightly in the second half of 2006, due to further pricing competition for deposits. Our outlook assumes a stable economic environment and continued strong credit quality.”
“We are committed to excellent customer service, superior operating performance and solid credit quality as we continue our efforts to build shareholder value through our balanced growth strategy of strong internal growth, complemented by selective de novo and merger expansion,” Tallent added.
Conference Call
United Community Banks will hold a conference call on Tuesday, January 24, 2006, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for 2006. The telephone number for the conference call is (866) 383-7998 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site.
United Community Banks will hold a conference call on Tuesday, January 24, 2006, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for 2006. The telephone number for the conference call is (866) 383-7998 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. As of December 31, 2005, United Community Banks had assets of $5.9 billion and operated 24 community banks with 90 banking offices located throughout north Georgia, metro Atlanta, 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 National Market under the symbol UCBI. Additional information may be found at the company’s web site,www.ucbi.com.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. As of December 31, 2005, United Community Banks had assets of $5.9 billion and operated 24 community banks with 90 banking offices located throughout north Georgia, metro Atlanta, 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 National Market under the symbol UCBI. Additional information may be found at the company’s web site,www.ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” on page 4 of United Community Banks, Inc. 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 factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” on page 4 of United Community Banks, Inc. annual report filed on Form 10-K with the Securities and Exchange Commission.
(Tables Follow)
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Three and Twelve Months Ended December 31, 2005
Selected Financial Information
For the Three and Twelve Months Ended December 31, 2005
Fourth | ||||||||||||||||||||||||||||||||||||
2005 | 2004 | Quarter | For the Twelve | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | 2005-2004 | Months Ended | 2005-2004 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2005 | 2004 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 95,465 | $ | 89,003 | $ | 80,701 | $ | 73,649 | $ | 66,761 | $ | 338,818 | $ | 239,386 | ||||||||||||||||||||||
Interest expense | 38,576 | 34,033 | 29,450 | 25,367 | 21,448 | 127,426 | 74,794 | |||||||||||||||||||||||||||||
Net interest revenue | 56,889 | 54,970 | 51,251 | 48,282 | 45,313 | 26 | % | 211,392 | 164,592 | 28 | % | |||||||||||||||||||||||||
Provision for loan losses | 3,500 | 3,400 | 2,800 | 2,400 | 2,000 | 12,100 | 7,600 | |||||||||||||||||||||||||||||
Fee revenue | 11,373 | 12,396 | 12,179 | 10,200 | 10,757 | 6 | 46,148 | 39,539 | 17 | |||||||||||||||||||||||||||
Total revenue | 64,762 | 63,966 | 60,630 | 56,082 | 54,070 | 20 | 245,440 | 196,531 | 25 | |||||||||||||||||||||||||||
Operating expenses(1) | 40,520 | 41,294 | 38,808 | 34,779 | 33,733 | 20 | 155,401 | 122,568 | 27 | |||||||||||||||||||||||||||
Income before taxes | 24,242 | 22,672 | 21,822 | 21,303 | 20,337 | 19 | 90,039 | 73,963 | 22 | |||||||||||||||||||||||||||
Income taxes | 9,012 | 8,374 | 8,049 | 7,862 | 7,427 | 33,297 | 26,807 | |||||||||||||||||||||||||||||
Net operating income | 15,230 | 14,298 | 13,773 | 13,441 | 12,910 | 18 | 56,742 | 47,156 | 20 | |||||||||||||||||||||||||||
Merger-related charges, net of tax | — | — | — | — | 261 | — | 565 | |||||||||||||||||||||||||||||
Net income | $ | 15,230 | $ | 14,298 | $ | 13,773 | $ | 13,441 | $ | 12,649 | 20 | $ | 56,742 | $ | 46,591 | 22 | ||||||||||||||||||||
OPERATING PERFORMANCE(1) | ||||||||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||||||
Basic | $ | .39 | $ | .37 | $ | .36 | $ | .35 | $ | .35 | 11 | $ | 1.47 | $ | 1.31 | 12 | ||||||||||||||||||||
Diluted | .38 | .36 | .35 | .34 | .34 | 12 | 1.43 | 1.27 | 13 | |||||||||||||||||||||||||||
Return on tangible equity(2)(3)(4) | 18.20 | % | 18.90 | % | 19.21 | % | 19.86 | % | 19.96 | % | 18.99 | % | 19.74 | % | ||||||||||||||||||||||
Return on assets(4) | 1.05 | 1.01 | 1.03 | 1.06 | 1.07 | 1.04 | 1.07 | |||||||||||||||||||||||||||||
Efficiency ratio | 58.80 | 61.16 | 61.18 | 59.47 | 60.20 | 60.15 | 60.05 | |||||||||||||||||||||||||||||
Dividend payout ratio | 17.95 | 18.92 | 19.44 | 20.00 | 17.14 | 19.05 | 18.32 | |||||||||||||||||||||||||||||
GAAP PERFORMANCE | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Basic earnings | $ | .39 | $ | .37 | $ | .36 | $ | .35 | $ | .34 | 15 | $ | 1.47 | $ | 1.29 | 14 | ||||||||||||||||||||
Diluted earnings | .38 | .36 | .35 | .34 | .33 | 15 | 1.43 | 1.25 | 14 | |||||||||||||||||||||||||||
Cash dividends declared | .07 | .07 | .07 | .07 | .06 | 17 | .28 | .24 | 17 | |||||||||||||||||||||||||||
Book value | 11.80 | 11.04 | 10.86 | 10.42 | 10.39 | 14 | 11.80 | 10.39 | 14 | |||||||||||||||||||||||||||
Tangible book value(3) | 8.94 | 8.05 | 7.85 | 7.40 | 7.34 | 22 | 8.94 | 7.34 | 22 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on equity(2)(4) | 13.30 | % | 13.42 | % | 13.46 | % | 13.68 | % | 14.15 | % | 13.46 | % | 14.39 | % | ||||||||||||||||||||||
Return on assets(4) | 1.05 | 1.01 | 1.03 | 1.06 | 1.05 | 1.04 | 1.05 | |||||||||||||||||||||||||||||
Net interest margin(4) | 4.20 | 4.17 | 4.12 | 4.05 | 4.05 | 4.14 | 4.00 | |||||||||||||||||||||||||||||
Dividend payout ratio | 17.95 | 18.92 | 19.44 | 20.00 | 17.65 | 19.05 | 18.60 | |||||||||||||||||||||||||||||
Equity to assets | 7.69 | 7.46 | 7.65 | 7.71 | 7.54 | 7.63 | 7.45 | |||||||||||||||||||||||||||||
Tangible equity to assets(3) | 5.82 | 5.53 | 5.62 | 5.58 | 5.75 | 5.64 | 5.78 | |||||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 53,595 | $ | 51,888 | $ | 49,873 | $ | 48,453 | $ | 47,196 | $ | 53,595 | $ | 47,196 | ||||||||||||||||||||||
Non-performing assets | 12,995 | 13,565 | 13,495 | 13,676 | 8,725 | 12,995 | 8,725 | |||||||||||||||||||||||||||||
Net charge-offs | 1,793 | 1,385 | 1,380 | 1,143 | 1,183 | 5,701 | 3,617 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 1.22 | % | 1.22 | % | 1.22 | % | 1.25 | % | 1.26 | % | 1.22 | % | 1.26 | % | ||||||||||||||||||||||
Non-performing assets to total assets | .22 | .24 | .24 | .26 | .17 | .22 | .17 | |||||||||||||||||||||||||||||
Net charge-offs to average loans(4) | .16 | .13 | .14 | .12 | .13 | .14 | .11 | |||||||||||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,328,613 | $ | 4,169,170 | $ | 3,942,077 | $ | 3,797,479 | $ | 3,572,824 | 21 | $ | 4,061,091 | $ | 3,322,916 | 22 | ||||||||||||||||||||
Investment securities | 1,004,966 | 1,008,687 | 996,096 | 946,194 | 805,766 | 25 | 989,201 | 734,577 | 35 | |||||||||||||||||||||||||||
Earning assets | 5,383,096 | 5,239,195 | 4,986,339 | 4,819,961 | 4,456,403 | 21 | 5,109,053 | 4,119,327 | 24 | |||||||||||||||||||||||||||
Total assets | 5,769,632 | 5,608,158 | 5,338,398 | 5,164,464 | 4,781,018 | 21 | 5,472,200 | 4,416,835 | 24 | |||||||||||||||||||||||||||
Deposits | 4,354,275 | 4,078,437 | 3,853,884 | 3,717,916 | 3,500,842 | 24 | 4,003,083 | 3,247,612 | 23 | |||||||||||||||||||||||||||
Stockholders’ equity | 443,746 | 418,459 | 408,352 | 398,164 | 360,668 | 23 | 417,309 | 329,225 | 27 | |||||||||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||||||||||
Basic | 39,084 | 38,345 | 38,270 | 38,198 | 37,056 | 38,477 | 36,071 | |||||||||||||||||||||||||||||
Diluted | 40,379 | 39,670 | 39,436 | 39,388 | 38,329 | 39,721 | 37,273 | |||||||||||||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,398,286 | $ | 4,254,051 | $ | 4,072,811 | $ | 3,877,575 | $ | 3,734,905 | 18 | $ | 4,398,286 | $ | 3,734,905 | 18 | ||||||||||||||||||||
Investment securities | 990,687 | 945,922 | 990,500 | 928,328 | 879,978 | 13 | 990,687 | 879,978 | 13 | |||||||||||||||||||||||||||
Earning assets | 5,470,718 | 5,302,532 | 5,161,067 | 4,907,743 | 4,738,389 | 15 | 5,470,718 | 4,738,389 | 15 | |||||||||||||||||||||||||||
Total assets | 5,865,756 | 5,709,666 | 5,540,242 | 5,265,771 | 5,087,702 | 15 | 5,865,756 | 5,087,702 | 15 | |||||||||||||||||||||||||||
Deposits | 4,477,600 | 4,196,369 | 3,959,226 | 3,780,521 | 3,680,516 | 22 | 4,477,600 | 3,680,516 | 22 | |||||||||||||||||||||||||||
Stockholders’ equity | 472,686 | 424,000 | 415,994 | 398,886 | 397,088 | 19 | 472,686 | 397,088 | 19 | |||||||||||||||||||||||||||
Common shares outstanding | 40,020 | 38,383 | 38,283 | 38,249 | 38,168 | 40,020 | 38,168 |
(1) | Excludes pre-tax merger-related charges totaling $406,000 or $.01 per diluted common share and $870,000 or $.02 per diluted common share in the fourth quarter and full year of 2004, respectively. | |
(2) | Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income. | |
(3) | Excludes effect of acquisition related intangibles and associated amortization. | |
(4) | Annualized. |
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data; | 5 Year | |||||||||||||||||||||||||||
taxable equivalent) | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | CAGR(4) | |||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||
Interest revenue | $ | 338,818 | $ | 239,386 | $ | 209,338 | $ | 195,932 | $ | 210,036 | $ | 213,115 | ||||||||||||||||
Interest expense | 127,426 | 74,794 | 70,600 | 76,357 | 100,874 | 116,591 | ||||||||||||||||||||||
Net interest revenue | 211,392 | 164,592 | 138,738 | 119,575 | 109,162 | 96,524 | 17 | % | ||||||||||||||||||||
Provision for loan losses | 12,100 | 7,600 | 6,300 | 6,900 | 6,000 | 7,264 | ||||||||||||||||||||||
Fee revenue | 46,148 | 39,539 | 38,184 | 30,734 | 25,267 | 18,867 | 20 | |||||||||||||||||||||
Total revenue | 245,440 | 196,531 | 170,622 | 143,409 | 128,429 | 108,127 | 18 | |||||||||||||||||||||
Operating expenses(1) | 155,401 | 122,568 | 107,900 | 91,124 | 83,906 | 74,043 | 16 | |||||||||||||||||||||
Income before taxes | 90,039 | 73,963 | 62,722 | 52,285 | 44,523 | 34,084 | 21 | |||||||||||||||||||||
Income taxes | 33,297 | 26,807 | 23,247 | 19,505 | 16,208 | 12,337 | ||||||||||||||||||||||
Net operating income | 56,742 | 47,156 | 39,475 | 32,780 | 28,315 | 21,747 | 21 | |||||||||||||||||||||
Merger-related charges, net of tax | — | 565 | 1,357 | — | 1,084 | 7,230 | ||||||||||||||||||||||
Net income | $ | 56,742 | $ | 46,591 | $ | 38,118 | $ | 32,780 | $ | 27,231 | $ | 14,517 | 31 | |||||||||||||||
OPERATING PERFORMANCE(1) | ||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||
Basic | $ | 1.47 | $ | 1.31 | $ | 1.15 | $ | 1.02 | $ | .89 | $ | .70 | 16 | |||||||||||||||
Diluted | 1.43 | 1.27 | 1.12 | .99 | .87 | .69 | 16 | |||||||||||||||||||||
Return on tangible equity(2)(3) | 18.99 | % | 19.74 | % | 19.24 | % | 17.88 | % | 18.19 | % | 16.74 | % | ||||||||||||||||
Return on assets | 1.04 | 1.07 | 1.06 | 1.11 | 1.10 | .89 | ||||||||||||||||||||||
Efficiency ratio | 60.15 | 60.05 | 60.89 | 60.66 | 62.52 | 64.15 | ||||||||||||||||||||||
Dividend payout ratio | 19.05 | 18.32 | 17.39 | 16.34 | 14.98 | 14.29 | ||||||||||||||||||||||
GAAP PERFORMANCE | ||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||
Basic earnings | $ | 1.47 | $ | 1.29 | $ | 1.11 | $ | 1.02 | $ | .86 | $ | .47 | 26 | |||||||||||||||
Diluted earnings | 1.43 | 1.25 | 1.08 | .99 | .84 | .46 | 25 | |||||||||||||||||||||
Cash dividends declared (rounded) | .28 | .24 | .20 | .17 | .13 | .10 | 23 | |||||||||||||||||||||
Book value | 11.80 | 10.39 | 8.47 | 6.89 | 5.98 | 4.93 | 19 | |||||||||||||||||||||
Tangible book value (3) | 8.94 | 7.34 | 6.52 | 6.49 | 5.40 | 4.49 | 15 | |||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||
Return on equity(2) | 13.46 | % | 14.39 | % | 14.79 | % | 16.54 | % | 16.08 | % | 10.04 | % | ||||||||||||||||
Return on assets | 1.04 | 1.05 | 1.02 | 1.11 | 1.05 | .59 | ||||||||||||||||||||||
Net interest margin | 4.14 | 4.00 | 3.99 | 4.33 | 4.51 | 4.16 | ||||||||||||||||||||||
Dividend payout ratio | 19.05 | 18.60 | 18.02 | 16.34 | 15.50 | 21.28 | ||||||||||||||||||||||
Equity to assets | 7.63 | 7.45 | 7.21 | 7.01 | 6.81 | 5.58 | ||||||||||||||||||||||
Tangible equity to assets(3) | 5.64 | 5.78 | 6.02 | 6.60 | 6.18 | 5.49 | ||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||
Allowance for loan losses | $ | 53,595 | $ | 47,196 | $ | 38,655 | $ | 30,914 | $ | 27,124 | $ | 24,698 | ||||||||||||||||
Non-performing assets | 12,995 | 8,725 | 7,589 | 8,019 | 9,670 | 6,716 | ||||||||||||||||||||||
Net charge-offs | 5,701 | 3,617 | 4,097 | 3,111 | 4,578 | 2,976 | ||||||||||||||||||||||
Allowance for loan losses to loans | 1.22 | % | 1.26 | % | 1.28 | % | 1.30 | % | 1.35 | % | 1.38 | % | ||||||||||||||||
Non-performing assets to total assets | .22 | .17 | .19 | .25 | .35 | .27 | ||||||||||||||||||||||
Net charge-offs to average loans | .14 | .11 | .15 | .14 | .25 | .18 | ||||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Loans | $ | 4,061,091 | $ | 3,322,916 | $ | 2,753,451 | $ | 2,239,875 | $ | 1,854,968 | $ | 1,683,403 | 19 | |||||||||||||||
Investment securities | 989,201 | 734,577 | 667,211 | 464,468 | 489,332 | 586,222 | 11 | |||||||||||||||||||||
Earning assets | 5,109,053 | 4,119,327 | 3,476,030 | 2,761,265 | 2,419,080 | 2,319,389 | 17 | |||||||||||||||||||||
Total assets | 5,472,200 | 4,416,835 | 3,721,284 | 2,959,295 | 2,585,290 | 2,453,250 | 17 | |||||||||||||||||||||
Deposits | 4,003,084 | 3,247,612 | 2,743,087 | 2,311,717 | 2,010,105 | 1,941,496 | 16 | |||||||||||||||||||||
Stockholders’ equity | 417,309 | 329,225 | 268,446 | 207,312 | 176,144 | 136,810 | 25 | |||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||
Basic | 38,477 | 36,071 | 34,132 | 32,062 | 31,691 | 30,900 | ||||||||||||||||||||||
Diluted | 39,721 | 37,273 | 35,252 | 33,241 | 32,624 | 31,791 | ||||||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||
Loans | $ | 4,398,286 | $ | 3,734,905 | $ | 3,015,997 | $ | 2,381,798 | $ | 2,007,990 | $ | 1,792,055 | 20 | |||||||||||||||
Investment securities | 990,687 | 879,978 | 659,891 | 559,390 | 470,176 | 508,266 | 14 | |||||||||||||||||||||
Earning assets | 5,470,718 | 4,738,389 | 3,796,332 | 3,029,409 | 2,554,530 | 2,352,475 | 18 | |||||||||||||||||||||
Total assets | 5,865,756 | 5,087,702 | 4,068,834 | 3,211,344 | 2,749,257 | 2,528,879 | 18 | |||||||||||||||||||||
Deposits | 4,477,600 | 3,680,516 | 2,857,449 | 2,385,239 | 2,116,499 | 1,995,865 | 18 | |||||||||||||||||||||
Stockholders’ equity | 472,686 | 397,088 | 299,373 | 221,579 | 194,665 | 158,388 | 24 | |||||||||||||||||||||
Common shares outstanding | 40,020 | 38,168 | 35,289 | 31,895 | 32,266 | 31,542 |
(1) | Excludes pre-tax merger-related and restructuring charges totaling $.9 million, or $.02 per diluted common share, recorded in 2004; $2.1 million, or $.04 per diluted common share, recorded in 2003; $1.6 million, or $.03 per diluted common share, recorded in 2001; and $10.6 million, or $.23 per diluted common share, recorded in 2000. | |
(2) | Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity which excludes accumulated other comprehensive income. | |
(3) | Excludes effect of acquisition related intangibles and associated amortization. | |
(4) | Compound annual growth rate. |
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income
For the Three and Twelve Months Ended December 31,
Consolidated Statement of Income
For the Three and Twelve Months Ended December 31,
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in thousands, except per share data) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 83,607 | $ | 57,800 | $ | 293,990 | $ | 207,571 | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 10,651 | 7,769 | 40,195 | 27,431 | ||||||||||||
Tax exempt | 513 | 536 | 2,086 | 2,161 | ||||||||||||
Federal funds sold and deposits in banks | 249 | 260 | 911 | 618 | ||||||||||||
Total interest revenue | 95,020 | 66,365 | 337,182 | 237,781 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand | 6,101 | 2,689 | 19,194 | 8,554 | ||||||||||||
Savings | 226 | 129 | 791 | 403 | ||||||||||||
Time | 21,288 | 11,524 | 66,968 | 41,202 | ||||||||||||
Total deposit interest expense | 27,615 | 14,342 | 86,953 | 50,159 | ||||||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 1,516 | 727 | 5,101 | 2,119 | ||||||||||||
Federal Home Loan Bank advances | 7,230 | 4,264 | 26,633 | 14,237 | ||||||||||||
Long-term Debt | 2,215 | 2,115 | 8,739 | 8,279 | ||||||||||||
Total interest expense | 38,576 | 21,448 | 127,426 | 74,794 | ||||||||||||
Net interest revenue | 56,444 | 44,917 | 209,756 | 162,987 | ||||||||||||
Provision for loan losses | 3,500 | 2,000 | 12,100 | 7,600 | ||||||||||||
Net interest revenue after provision for loan losses | 52,944 | 42,917 | 197,656 | 155,387 | ||||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 6,616 | 5,646 | 25,137 | 21,540 | ||||||||||||
Mortgage loan and other related fees | 1,738 | 1,712 | 7,330 | 6,324 | ||||||||||||
Consulting fees | 1,665 | 1,794 | 6,609 | 5,749 | ||||||||||||
Brokerage fees | 789 | 427 | 2,570 | 2,027 | ||||||||||||
Securities (losses) gains, net | (654 | ) | 34 | (809 | ) | 428 | ||||||||||
Loss on prepayments of borrowings | — | — | — | (391 | ) | |||||||||||
Other | 1,219 | 1,144 | 5,311 | 3,862 | ||||||||||||
Total fee revenue | 11,373 | 10,757 | 46,148 | 39,539 | ||||||||||||
Total revenue | 64,317 | 53,674 | 243,804 | 194,926 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 25,604 | 21,571 | 99,447 | 77,995 | ||||||||||||
Communications and equipment | 3,576 | 2,893 | 13,157 | 10,945 | ||||||||||||
Occupancy | 2,706 | 2,364 | 10,835 | 9,271 | ||||||||||||
Advertising and public relations | 1,988 | 1,525 | 6,733 | 4,403 | ||||||||||||
Postage, printing and supplies | 1,355 | 1,027 | 5,501 | 4,451 | ||||||||||||
Professional fees | 1,023 | 1,057 | 4,306 | 3,724 | ||||||||||||
Amortization of intangibles | 503 | 466 | 2,012 | 1,674 | ||||||||||||
Merger-related charges | — | 406 | — | 870 | ||||||||||||
Other | 3,765 | 2,830 | 13,410 | 10,105 | ||||||||||||
Total operating expenses | 40,520 | 34,139 | 155,401 | 123,438 | ||||||||||||
Income before income taxes | 23,797 | 19,535 | 88,403 | 71,488 | ||||||||||||
Income taxes | 8,567 | 6,886 | 31,661 | 24,897 | ||||||||||||
Net income | $ | 15,230 | $ | 12,649 | $ | 56,742 | $ | 46,591 | ||||||||
Net income available to common stockholders | $ | 15,225 | $ | 12,649 | $ | 56,719 | $ | 46,582 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | .39 | $ | .34 | $ | 1.47 | $ | 1.29 | ||||||||
Diluted | $ | .38 | .33 | $ | 1.43 | 1.25 | ||||||||||
Weighted average common shares outstanding (in thousands): | ||||||||||||||||
Basic | 39,084 | 37,056 | 38,477 | 36,071 | ||||||||||||
Diluted | 40,379 | 38,329 | 39,721 | 37,273 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
For the period ended
Consolidated Balance Sheet
For the period ended
December 31, | December 31, | |||||||
(in thousands, except per share data) | 2005 | 2004 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 121,963 | $ | 99,742 | ||||
Interest-bearing deposits in banks | 20,607 | 35,098 | ||||||
Cash and cash equivalents | 142,570 | 134,840 | ||||||
Securities available for sale | 990,687 | 879,978 | ||||||
Mortgage loans held for sale | 22,335 | 37,094 | ||||||
Loans, net of unearned income | 4,398,286 | 3,734,905 | ||||||
Less — allowance for loan losses | 53,595 | 47,196 | ||||||
Loans, net | 4,344,691 | 3,687,709 | ||||||
Premises and equipment, net | 112,887 | 103,679 | ||||||
Accrued interest receivable | 37,197 | 27,923 | ||||||
Intangible assets | 118,651 | 121,207 | ||||||
Other assets | 96,738 | 95,272 | ||||||
Total assets | $ | 5,865,756 | $ | 5,087,702 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand | $ | 602,525 | $ | 532,879 | ||||
Interest-bearing demand | 1,264,947 | 1,055,192 | ||||||
Savings | 175,453 | 171,898 | ||||||
Time | 2,434,675 | 1,920,547 | ||||||
Total deposits | 4,477,600 | 3,680,516 | ||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 122,881 | 132,931 | ||||||
Federal Home Loan Bank advances | 635,616 | 737,947 | ||||||
Long-term debt | 111,869 | 111,869 | ||||||
Accrued expenses and other liabilities | 45,104 | 27,351 | ||||||
Total liabilities | 5,393,070 | 4,690,614 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200 and 44,800 shares issued and outstanding in 2005 and 2004, respectively | 322 | 448 | ||||||
Common stock, $1 par value; 100,000,000 shares authorized; 40,019,853 and 38,407,874 shares issued in 2005 and 2004, respectively | 40,020 | 38,408 | ||||||
Common stock issuable; 9,948 shares in 2005 | 271 | — | ||||||
Capital surplus | 193,355 | 155,076 | ||||||
Retained earnings | 250,563 | 204,709 | ||||||
Treasury stock; 240,346 shares in 2004, at cost | — | (4,413 | ) | |||||
Accumulated other comprehensive (loss) income | (11,845 | ) | 2,860 | |||||
Total stockholders’ equity | 472,686 | 397,088 | ||||||
Total liabilities and stockholders’ equity | $ | 5,865,756 | $ | 5,087,702 | ||||