UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 1
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2005
Commission File Number 0-21656
UNITED COMMUNITY BANKS, INC.
(Exact name of registrant as specified in its charter)
Georgia | 58-1807304 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
63 Highway 515, Blairsville, Georgia | 30512 | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:(706) 781-2265
Securities registered pursuant to Section 12(b) of the Act: None
Name of exchange on which registered: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $1.00 par value
Common Stock, $1.00 par value
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yesþ Noo
Indicate by check mark if the registrant is not required to file reports pursuant to Sections 13 or 15(d) of the Act.
Yeso Noþ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yesþ Noo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (check one):
Large accelerated filerþ Accelerated filero Non-accelerated filero
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yeso Noþ
Aggregate market value of the voting stock held by non-affiliates of the Registrant: $814,107,000 (based on shares held by non-affiliates at $26.02 per share, the closing stock price on the Nasdaq stock market on June 30, 2005).
As of January 31, 2006, 40,080,244 shares of common stock were issued and outstanding, including 372,000 shares deemed outstanding pursuant to prime plus 1/4% convertible subordinated payable-in-kind debentures due December 31, 2006 and presently exercisable options to acquire 1,252,868 shares.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on April 26, 2006 are incorporated herein into Part III by reference.
EXPLANATORY NOTE
United Community Banks, Inc. is filing this amendment on Form 10-K/A to its Form 10-K for the year ended December 31, 2005 to replace the table in Item 6. Selected Financial Data titled “Selected Financial Information For the Years Ended December 31.” The compound annual growth rate in the far right column of the original table had been calculated incorrectly.
United Community Banks, Inc. is filing an unofficial PDF copy of the entire Form 10-K, as amended, with this amendment.
ITEM 6. SELECTED FINANCIAL DATA
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data; | 5 Year | |||||||||||||||||||||||
taxable equivalent) | 2005 | 2004 | 2003 | 2002 | 2001 | CAGR(4) | ||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest revenue | $ | 338,818 | $ | 239,386 | $ | 209,338 | $ | 195,932 | $ | 210,036 | ||||||||||||||
Interest expense | 127,426 | 74,794 | 70,600 | 76,357 | 100,874 | |||||||||||||||||||
Net interest revenue | 211,392 | 164,592 | 138,738 | 119,575 | 109,162 | 17 | % | |||||||||||||||||
Provision for loan losses | 12,100 | 7,600 | 6,300 | 6,900 | 6,000 | |||||||||||||||||||
Fee revenue | 46,148 | 39,539 | 38,184 | 30,734 | 25,267 | 20 | ||||||||||||||||||
Total revenue | 245,440 | 196,531 | 170,622 | 143,409 | 128,429 | 18 | ||||||||||||||||||
Operating expenses(1) | 155,401 | 122,568 | 107,900 | 91,124 | 83,906 | 16 | ||||||||||||||||||
Income before taxes | 90,039 | 73,963 | 62,722 | 52,285 | 44,523 | 21 | ||||||||||||||||||
Income taxes | 33,297 | 26,807 | 23,247 | 19,505 | 16,208 | |||||||||||||||||||
Net operating income | 56,742 | 47,156 | 39,475 | 32,780 | 28,315 | 21 | ||||||||||||||||||
Merger-related charges, net of tax | — | 565 | 1,357 | — | 1,084 | |||||||||||||||||||
Net income | $ | 56,742 | $ | 46,591 | $ | 38,118 | $ | 32,780 | $ | 27,231 | 31 | |||||||||||||
OPERATING PERFORMANCE(1) | ||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||
Basic | $ | 1.47 | $ | 1.31 | $ | 1.15 | $ | 1.02 | $ | .89 | 16 | |||||||||||||
Diluted | 1.43 | 1.27 | 1.12 | .99 | .87 | 16 | ||||||||||||||||||
Return on tangible equity(2)(3) | 18.99 | % | 19.74 | % | 19.24 | % | 17.88 | % | 18.19 | % | ||||||||||||||
Return on assets | 1.04 | 1.07 | 1.06 | 1.11 | 1.10 | |||||||||||||||||||
Efficiency ratio | 60.15 | 60.05 | 60.89 | 60.66 | 62.52 | |||||||||||||||||||
Dividend payout ratio | 19.05 | 18.32 | 17.39 | 16.34 | 14.98 | |||||||||||||||||||
GAAP PERFORMANCE | ||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Basic earnings | $ | 1.47 | $ | 1.29 | $ | 1.11 | $ | 1.02 | $ | .86 | 26 | |||||||||||||
Diluted earnings | 1.43 | 1.25 | 1.08 | .99 | .84 | 25 | ||||||||||||||||||
Cash dividends declared (rounded) | .28 | .24 | .20 | .17 | .13 | 23 | ||||||||||||||||||
Book value | 11.80 | 10.39 | 8.47 | 6.89 | 5.98 | 19 | ||||||||||||||||||
Tangible book value (3) | 8.94 | 7.34 | 6.52 | 6.49 | 5.40 | 15 | ||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||
Return on equity(2) | 13.46 | % | 14.39 | % | 14.79 | % | 16.54 | % | 16.08 | % | ||||||||||||||
Return on assets | 1.04 | 1.05 | 1.02 | 1.11 | 1.05 | |||||||||||||||||||
Net interest margin | 4.14 | 4.00 | 3.99 | 4.33 | 4.51 | |||||||||||||||||||
Dividend payout ratio | 19.05 | 18.60 | 18.02 | 16.34 | 15.50 | |||||||||||||||||||
Equity to assets | 7.63 | 7.45 | 7.21 | 7.01 | 6.81 | |||||||||||||||||||
Tangible equity to assets(3) | 5.64 | 5.78 | 6.02 | 6.60 | 6.18 | |||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||
Allowance for loan losses | $ | 53,595 | $ | 47,196 | $ | 38,655 | $ | 30,914 | $ | 27,124 | ||||||||||||||
Non-performing assets | 12,995 | 8,725 | 7,589 | 8,019 | 9,670 | |||||||||||||||||||
Net charge-offs | 5,701 | 3,617 | 4,097 | 3,111 | 4,578 | |||||||||||||||||||
Allowance for loan losses to loans | 1.22 | % | 1.26 | % | 1.28 | % | 1.30 | % | 1.35 | % | ||||||||||||||
Non-performing assets to total assets | .22 | .17 | .19 | .25 | .35 | |||||||||||||||||||
Net charge-offs to average loans | .14 | .11 | .15 | .14 | .25 | |||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||
Loans | $ | 4,061,091 | $ | 3,322,916 | $ | 2,753,451 | $ | 2,239,875 | $ | 1,854,968 | 19 | |||||||||||||
Investment securities | 989,201 | 734,577 | 667,211 | 464,468 | 489,332 | 11 | ||||||||||||||||||
Earning assets | 5,109,053 | 4,119,327 | 3,476,030 | 2,761,265 | 2,419,080 | 17 | ||||||||||||||||||
Total assets | 5,472,200 | 4,416,835 | 3,721,284 | 2,959,295 | 2,585,290 | 17 | ||||||||||||||||||
Deposits | 4,003,084 | 3,247,612 | 2,743,087 | 2,311,717 | 2,010,105 | 16 | ||||||||||||||||||
Stockholders’ equity | 417,309 | 329,225 | 268,446 | 207,312 | 176,144 | 25 | ||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||
Basic | 38,477 | 36,071 | 34,132 | 32,062 | 31,691 | |||||||||||||||||||
Diluted | 39,721 | 37,273 | 35,252 | 33,241 | 32,624 | |||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||
Loans | $ | 4,398,286 | $ | 3,734,905 | $ | 3,015,997 | $ | 2,381,798 | $ | 2,007,990 | 20 | |||||||||||||
Investment securities | 990,687 | 879,978 | 659,891 | 559,390 | 470,176 | 14 | ||||||||||||||||||
Earning assets | 5,470,718 | 4,738,389 | 3,796,332 | 3,029,409 | 2,554,530 | 18 | ||||||||||||||||||
Total assets | 5,865,756 | 5,087,702 | 4,068,834 | 3,211,344 | 2,749,257 | 18 | ||||||||||||||||||
Deposits | 4,477,600 | 3,680,516 | 2,857,449 | 2,385,239 | 2,116,499 | 18 | ||||||||||||||||||
Stockholders’ equity | 472,686 | 397,088 | 299,373 | 221,579 | 194,665 | 24 | ||||||||||||||||||
Common shares outstanding | 40,020 | 38,168 | 35,289 | 31,895 | 32,266 |
(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; and $1.6 million, or $.03 per diluted common share, recorded in 2001. | |
(2) | Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity which excludes accumulated other comprehensive income (loss). | |
(3) | Excludes effect of acquisition related intangibles and associated amortization. | |
(4) | Compound annual growth rate. |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(a) of the Securities Exchange Act of 1934, United has duly caused this Report on Form 10-K, as amended, to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Blairsville, State of Georgia, on the 6th of March, 2006.
UNITED COMMUNITY BANKS, INC. (Registrant) | ||||
By: | /s/Jimmy C. Tallent | |||
Jimmy C. Tallent | ||||
President and Chief Executive Officer (Principal Executive Officer) | ||||
By: | /s/Rex S. Schuette | |||
Rex S. Schuette | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||
By: | /s/Alan H. Kumler | |||
Alan H. Kumler | ||||
Senior Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) | ||||
* | ||||
/s/Jimmy C. Tallent | ||||
Jimmy C. Tallent | ||||
President, Chief Executive Officer and Director | ||||
(Principal Executive Officer) | ||||
Robert L. Head, Jr. | ||||
Chairman of the Board | ||||
* | ||||
W. C. Nelson, Jr. | ||||
Vice Chairman of the Board | ||||
* | ||||
A. William Bennett | ||||
Director | ||||
* | ||||
Robert Blalock | ||||
Director | ||||
* | ||||
Guy W. Freeman | ||||
Director |
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* | ||||
Thomas C. Gilliland | ||||
Director | ||||
* | ||||
Charles E. Hill | ||||
Director | ||||
* | ||||
Hoyt O. Holloway | ||||
Director | ||||
* | ||||
Clarence W. Mason, Sr. | ||||
Director | ||||
* | ||||
Tim Wallis | ||||
Director | ||||
*By: | /s/ Jimmy C. Tallent | |||
Jimmy C. Tallent | ||||
Attorney-in-fact |
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EXHIBIT INDEX
Exhibit No. | Description | |
31.1 | Certification by Jimmy C. Tallent, President and Chief Executive Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification by Rex S. Schuette, Executive Vice President and Chief Financial Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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