EXHIBIT 99.1
![(UNITED COMMUNITY BANKS)](https://capedge.com/proxy/8-K/0000950144-06-003595/g00885g0088501.gif)
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
15% GAIN IN DILUTED EARNINGS PER SHARE
FOR FIRST QUARTER 2006
15% GAIN IN DILUTED EARNINGS PER SHARE
FOR FIRST QUARTER 2006
HIGHLIGHTS:
• | Record First Quarter Earnings |
Diluted Earnings Per Share of $.39 — Up 15%
Net Income of $16 Million — Up 19%
Return on Tangible Equity of 17.66%
Total Assets Rise to $6.1 billion
Net Income of $16 Million — Up 19%
Return on Tangible Equity of 17.66%
Total Assets Rise to $6.1 billion
• | Strong Loan Demand, Rise in Net Interest Margin and Fee Revenue Drove Performance |
BLAIRSVILLE, GA, April 18, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third largest bank holding company, today announced record financial results for the first quarter of 2006. Compared with the first quarter of 2005, the company achieved a 21% increase in total revenue, a 19% rise in net income and a 15% gain in diluted earnings per share.
For the first quarter of 2006, net income rose to $16.0 million compared with $13.4 million a year earlier. Diluted earnings per share increased to $.39 from $.34 a year ago. Total revenue, on a taxable equivalent basis, was $68.0 million compared with $56.1 million for the first quarter of 2005. Return on tangible equity was 17.66% and return on assets was 1.09%, compared with 19.86% and 1.06%, respectively, a year ago.
“Demand for loans and deposits was strong across all markets, leading to excellent growth opportunities.” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “This strong growth pushed total assets above $6 billion, a 15% increase from a year ago and a significant milestone for our company. Loans increased $186 million during the first quarter, or 17% on an annualized basis, and helped drive the increase in net interest revenue. We added $271 million of deposits this quarter, which more than funded our loan growth as we continued to focus on programs to grow core deposits. Our net interest margin rose to 4.33%, up 28 basis points from a year ago and up 13 basis points from last quarter, as increasing short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet. Fee revenue was up 15%, reflecting increases in every category.”
At March 31, 2006, total loans were $4.6 billion, up $707 million, or 18%, from a year ago. All of the loan growth was organic, which included growth from a significant de novo expansion in Hall County, Georgia. “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 de novo expansion,” Tallent said. “We find the right people and build around them, usually adding two to four new offices a year. In the first quarter, we opened our fifth banking office in Hall County, a second location in Savannah and a commercial loan office in Jasper, which is located in Pickens County just north of Atlanta.” Tallent continued, “Ten months ago, 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 of 2005, this team has added more than $280 million in loans and $170 million in deposits. We now have 85 staff and 5 banking offices, including the main office located in downtown Gainesville. It is a testimony to the success and strength of our existing franchise that we were able to reinvest earnings to absorb these significant de novo undertakings and still deliver on our primary financial goal of consistent, sustainable double-digit growth in earnings per share.”
“The first quarter continued a trend of outstanding deposit growth. We added $271 million of deposits and over half were core deposits,” 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 first quarter, taxable equivalent net interest revenue of $59.7 million was up $11.5 million, or 24%, from the first quarter of 2005. Taxable equivalent net interest margin for the first quarter was 4.33%, compared with 4.05% a year ago and 4.20% for the fourth quarter of 2005. “Our balance sheet has remained asset sensitive, which allowed us to benefit from the rise in interest rates that produced a slight margin expansion throughout 2005 and into the first quarter of 2006,” Tallent said.
The first quarter provision for loan losses was $3.5 million, up $1.1 million from a year earlier and equal to the fourth quarter of 2005. Annualized net charge-offs to average loans were 11 basis points for the first quarter, compared with 16 basis points for the fourth quarter of 2005 and 12 basis points for the first quarter of 2005. At quarter-end, non-performing assets totaled $8.4 million compared with $13.0 million at the end of the fourth quarter of 2005 and $13.7 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, compared with 22 basis points at December 31, 2005 and 26 basis points at March 31, 2005. “During the first quarter, our credit quality remained solid and we experienced a lower level of net charge-offs and non-performing assets. Asset quality continues to compare favorably with peer banks and can be somewhat volatile at these low levels,” Tallent said. “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 $11.8 million reflected an increase of $1.6 million, or 15%, from $10.2 million for the first quarter of 2005. “Fee revenue growth was achieved in every category,” Tallent stated. “Service charges and fees on deposit accounts increased $739,000 to $6.4 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and ATM fees. Brokerage fees increased $408,000 to $850,000 due to strong market activity. Consulting fees of $1.6 million were up slightly, due to the growth in risk management services,” Tallent added.
Operating expenses of $42.2 million increased $7.4 million, or 21%, from the first quarter of 2005. Salaries and employee benefit costs of $27.6 million increased $5.4 million, or 24%, from the first quarter of 2005 due to an increase in staff to support our significant expansion efforts and business growth. Communications and equipment expenses increased $394,000 to $3.4 million due to further investments in technology equipment to support business growth. Advertising and public relations expense rose $525,000 to $1.9 million reflecting the continuing cost of initiatives to raise core deposits and ongoing efforts to generate brand awareness in new markets. Occupancy expense increased $264,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. Postage, printing and supplies expense increased $165,000 to $1.5 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 higher lending related costs and other expenses related to business growth. “Our operating efficiency ratio of 59.06% for the quarter is within our long-term efficiency goal of 58% to 60%, reflecting the continued strength of our existing franchise, strong revenue growth and disciplined expense controls, which more than offset the costs of reinvesting for the future through our recent expansion efforts,” Tallent said.
“Our outlook for 2006 is for operating earnings per share growth within our long-term goal of 12% to 15%, which includes dilution related to the equity offering completed during the fourth quarter of 2005 and expensing of stock options,” Tallent said. “We anticipate core loan growth will to be at the upper-end of our targeted range of 10% to 14%. Our net interest margin has benefited from rising short-term interest rates; however, we expect these rates to level-off and our 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, April 18, 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 the remainder of 2006. The telephone number for the conference call is (866) 356-4279 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 at ucbi.com.
United Community Banks will hold a conference call on Tuesday, April 18, 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 the remainder of 2006. The telephone number for the conference call is (866) 356-4279 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 at ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. As of March 31, 2006, United Community Banks had assets of $6.1 billion and operated 24 community banks with 93 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 at ucbi.com.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. As of March 31, 2006, United Community Banks had assets of $6.1 billion and operated 24 community banks with 93 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 at 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 Months Ended March 31, 2006
Selected Financial Information
For the Three Months Ended March 31, 2006
First | ||||||||||||||||||||||||
2006 | 2005 | Quarter | ||||||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | 2006-2005 | ||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest revenue | $ | 102,797 | $ | 95,465 | $ | 89,003 | $ | 80,701 | $ | 73,649 | ||||||||||||||
Interest expense | 43,065 | 38,576 | 34,033 | 29,450 | 25,367 | |||||||||||||||||||
Net interest revenue | 59,732 | 56,889 | 54,970 | 51,251 | 48,282 | 24 | % | |||||||||||||||||
Provision for loan losses | 3,500 | 3,500 | 3,400 | 2,800 | 2,400 | |||||||||||||||||||
Fee revenue | 11,758 | 11,373 | 12,396 | 12,179 | 10,200 | 15 | ||||||||||||||||||
Total revenue | 67,990 | 64,762 | 63,966 | 60,630 | 56,082 | 21 | ||||||||||||||||||
Operating expenses | 42,222 | 40,520 | 41,294 | 38,808 | 34,779 | 21 | ||||||||||||||||||
Income before taxes | 25,768 | 24,242 | 22,672 | 21,822 | 21,303 | 21 | ||||||||||||||||||
Income taxes | 9,729 | 9,012 | 8,374 | 8,049 | 7,862 | |||||||||||||||||||
Net income | $ | 16,039 | $ | 15,230 | $ | 14,298 | $ | 13,773 | $ | 13,441 | 19 | |||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Basic earnings | $ | .40 | $ | .39 | $ | .37 | $ | .36 | $ | .35 | 14 | |||||||||||||
Diluted earnings | .39 | .38 | .36 | .35 | .34 | 15 | ||||||||||||||||||
Cash dividends declared | .08 | .07 | .07 | .07 | .07 | 14 | ||||||||||||||||||
Book value | 12.09 | 11.80 | 11.04 | 10.86 | 10.42 | 16 | ||||||||||||||||||
Tangible book value(2) | 9.25 | 8.94 | 8.05 | 7.85 | 7.40 | 25 | ||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||
Return on tangible equity(1)(2)(3) | 17.66 | % | 18.20 | % | 18.90 | % | 19.21 | % | 19.86 | % | ||||||||||||||
Return on equity(1)(3) | 13.25 | 13.30 | 13.42 | 13.46 | 13.68 | |||||||||||||||||||
Return on assets(3) | 1.09 | 1.05 | 1.01 | 1.03 | 1.06 | |||||||||||||||||||
Net interest margin(3) | 4.33 | 4.20 | 4.17 | 4.12 | 4.05 | |||||||||||||||||||
Efficiency ratio | 59.06 | 58.80 | 61.16 | 61.18 | 59.47 | |||||||||||||||||||
Dividend payout ratio | 20.00 | 17.95 | 18.92 | 19.44 | 20.00 | |||||||||||||||||||
Equity to assets | 8.04 | 7.69 | 7.46 | 7.65 | 7.71 | |||||||||||||||||||
Tangible equity to assets(2) | 6.24 | 5.82 | 5.53 | 5.62 | 5.58 | |||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||
Allowance for loan losses | $ | 55,850 | $ | 53,595 | $ | 51,888 | $ | 49,873 | $ | 48,453 | ||||||||||||||
Non-performing assets | 8,367 | 12,995 | 13,565 | 13,495 | 13,676 | |||||||||||||||||||
Net charge-offs | 1,245 | 1,793 | 1,385 | 1,380 | 1,143 | |||||||||||||||||||
Allowance for loan losses to loans | 1.22 | % | 1.22 | % | �� | 1.22 | % | 1.22 | % | 1.25 | % | |||||||||||||
Non-performing assets to total assets | .14 | .22 | .24 | .24 | .26 | |||||||||||||||||||
Net charge-offs to average loans(3) | .11 | .16 | .13 | .14 | .12 | |||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||
Loans | $ | 4,505,494 | $ | 4,328,613 | $ | 4,169,170 | $ | 3,942,077 | $ | 3,797,479 | 19 | |||||||||||||
Investment securities | 1,038,683 | 1,004,966 | 1,008,687 | 996,096 | 946,194 | 10 | ||||||||||||||||||
Earning assets | 5,574,712 | 5,383,096 | 5,239,195 | 4,986,339 | 4,819,961 | 16 | ||||||||||||||||||
Total assets | 5,960,801 | 5,769,632 | 5,608,158 | 5,338,398 | 5,164,464 | 15 | ||||||||||||||||||
Deposits | 4,613,809 | 4,354,275 | 4,078,437 | 3,853,884 | 3,717,916 | 24 | ||||||||||||||||||
Stockholders’ equity | 478,960 | 443,746 | 418,459 | 408,352 | 398,164 | 20 | ||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||
Basic | 40,088 | 39,084 | 38,345 | 38,270 | 38,198 | |||||||||||||||||||
Diluted | 41,190 | 40,379 | 39,670 | 39,436 | 39,388 | |||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||
Loans | $ | 4,584,155 | $ | 4,398,286 | $ | 4,254,051 | $ | 4,072,811 | $ | 3,877,575 | 18 | |||||||||||||
Investment securities | 983,846 | 990,687 | 945,922 | 990,500 | 928,328 | 6 | ||||||||||||||||||
Earning assets | 5,633,381 | 5,470,718 | 5,302,532 | 5,161,067 | 4,907,743 | 15 | ||||||||||||||||||
Total assets | 6,070,596 | 5,865,756 | 5,709,666 | 5,540,242 | 5,265,771 | 15 | ||||||||||||||||||
Deposits | 4,748,438 | 4,477,600 | 4,196,369 | 3,959,226 | 3,780,521 | 26 | ||||||||||||||||||
Stockholders’ equity | 485,414 | 472,686 | 424,000 | 415,994 | 398,886 | 22 | ||||||||||||||||||
Common shares outstanding | 40,119 | 40,020 | 38,383 | 38,283 | 38,249 |
(1) | Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). | |
(2) | Excludes effect of acquisition related intangibles and associated amortization. | |
(3) | Annualized. |
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income
For the Three Months Ended March 31,
Consolidated Statement of Income
For the Three Months Ended March 31,
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands, except per share data) | 2006 | 2005 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 90,365 | $ | 63,467 | ||||
Investment securities: | ||||||||
Taxable | 11,318 | 9,014 | ||||||
Tax exempt | 514 | 525 | ||||||
Federal funds sold and deposits in banks | 158 | 259 | ||||||
Total interest revenue | 102,355 | 73,265 | ||||||
Interest expense: | ||||||||
Deposits: | ||||||||
Demand | 7,187 | 3,527 | ||||||
Savings | 228 | 168 | ||||||
Time | 25,386 | 13,008 | ||||||
Total deposit interest expense | 32,801 | 16,703 | ||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 1,476 | 885 | ||||||
Federal Home Loan Bank advances | 6,629 | 5,657 | ||||||
Long-term Debt | 2,159 | 2,122 | ||||||
Total interest expense | 43,065 | 25,367 | ||||||
Net interest revenue | 59,290 | 47,898 | ||||||
Provision for loan losses | 3,500 | 2,400 | ||||||
Net interest revenue after provision for loan losses | 55,790 | 45,498 | ||||||
Fee revenue: | ||||||||
Service charges and fees | 6,353 | 5,614 | ||||||
Mortgage loan and other related fees | 1,513 | 1,483 | ||||||
Consulting fees | 1,584 | 1,482 | ||||||
Brokerage fees | 850 | 442 | ||||||
Securities losses, net | (3 | ) | — | |||||
Other | 1,461 | 1,179 | ||||||
Total fee revenue | 11,758 | 10,200 | ||||||
Total revenue | 67,548 | 55,698 | ||||||
Operating expenses: | ||||||||
Salaries and employee benefits | 27,643 | 22,235 | ||||||
Communications and equipment | 3,376 | 2,982 | ||||||
Occupancy | 2,932 | 2,668 | ||||||
Advertising and public relations | 1,888 | 1,363 | ||||||
Postage, printing and supplies | 1,516 | 1,351 | ||||||
Professional fees | 1,161 | 1,038 | ||||||
Amortization of intangibles | 503 | 503 | ||||||
Other | 3,203 | 2,639 | ||||||
Total operating expenses | 42,222 | 34,779 | ||||||
Income before income taxes | 25,326 | 20,919 | ||||||
Income taxes | 9,287 | 7,478 | ||||||
Net income | $ | 16,039 | $ | 13,441 | ||||
Net income available to common stockholders | $ | 16,034 | $ | 13,434 | ||||
Earnings per common share: | ||||||||
Basic | $ | .40 | $ | .35 | ||||
Diluted | .39 | .34 | ||||||
Weighted average common shares outstanding (in thousands): | ||||||||
Basic | 40,088 | 38,198 | ||||||
Diluted | 41,190 | 39,388 |
UNITED COMMUNITY BANKS, INC. | ||||
Consolidated Balance Sheet | ||||
For the period ended |
March 31, | December 31, | March 31, | ||||||||||
(in thousands, except per share data) | 2006 | 2005 | 2005 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 150,378 | $ | 121,963 | $ | 98,502 | ||||||
Interest-bearing deposits in banks | 12,259 | 20,607 | 21,677 | |||||||||
Cash and cash equivalents | 162,637 | 142,570 | 120,179 | |||||||||
Securities available for sale | 983,846 | 990,687 | 928,328 | |||||||||
Mortgage loans held for sale | 18,455 | 22,335 | 34,628 | |||||||||
Loans, net of unearned income | 4,584,155 | 4,398,286 | 3,877,575 | |||||||||
Less — allowance for loan losses | 55,850 | 53,595 | 48,453 | |||||||||
Loans, net | 4,528,305 | 4,344,691 | 3,829,122 | |||||||||
Premises and equipment, net | 120,021 | 112,887 | 105,188 | |||||||||
Accrued interest receivable | 41,895 | 37,197 | 30,519 | |||||||||
Intangible assets | 118,149 | 118,651 | 120,119 | |||||||||
Other assets | 97,288 | 96,738 | 97,688 | |||||||||
Total assets | $ | 6,070,596 | $ | 5,865,756 | $ | 5,265,771 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 653,624 | $ | 602,525 | $ | 541,690 | ||||||
Interest-bearing demand | 1,277,434 | 1,264,947 | 1,120,284 | |||||||||
Savings | 176,205 | 175,453 | 177,051 | |||||||||
Time deposits: | ||||||||||||
Less than $100,000 | 1,308,698 | 1,218,277 | 1,007,313 | |||||||||
Greater than $100,000 | 1,029,464 | 895,466 | 618,028 | |||||||||
Brokered deposits | 303,013 | 320,932 | 316,155 | |||||||||
Total deposits | 4,748,438 | 4,477,600 | 3,780,521 | |||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 167,369 | 122,881 | 154,633 | |||||||||
Federal Home Loan Bank advances | 510,602 | 635,616 | 785,382 | |||||||||
Long-term debt | 111,869 | 111,869 | 111,869 | |||||||||
Accrued expenses and other liabilities | 46,904 | 45,104 | 34,480 | |||||||||
Total liabilities | 5,585,182 | 5,393,070 | 4,866,885 | |||||||||
Shareholders’ equity: | ||||||||||||
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200, 32,200 and 44,800 shares issued and outstanding | 322 | 322 | 448 | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; 40,119,288, 40,019,853 and 38,407,874 shares issued | 40,119 | 40,020 | 38,408 | |||||||||
Common stock issuable; 16,549 and 9,948 shares as of March 31, 2006 and December 31, 2005, respectively | 451 | 271 | — | |||||||||
Capital surplus | 195,382 | 193,355 | 154,535 | |||||||||
Retained earnings | 263,384 | 250,563 | 215,466 | |||||||||
Treasury stock; 158,467 shares as of March 31, 2005, at cost | — | — | (3,074 | ) | ||||||||
Accumulated other comprehensive (loss) income | (14,244 | ) | (11,845 | ) | (6,897 | ) | ||||||
Total shareholders’ equity | 485,414 | 472,686 | 398,886 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,070,596 | $ | 5,865,756 | $ | 5,265,771 | ||||||
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,
2006 | 2005 | |||||||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||||||
(In thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1)(2) | $ | 4,505,494 | $ | 90,254 | 8.12 | % | $ | 3,797,479 | $ | 63,136 | 6.74 | % | ||||||||||||
Taxable securities(3) | 989,683 | 11,318 | 4.57 | 896,307 | 9,014 | 4.02 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 49,000 | 846 | 6.90 | 49,887 | 864 | 6.93 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 30,535 | 379 | 4.96 | 76,288 | 635 | 3.33 | ||||||||||||||||||
Total interest-earning assets | 5,574,712 | 102,797 | 7.47 | 4,819,961 | 73,649 | 6.18 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (54,825 | ) | (48,155 | ) | ||||||||||||||||||||
Cash and due from banks | 122,486 | 92,393 | ||||||||||||||||||||||
Premises and equipment | 115,590 | 102,409 | ||||||||||||||||||||||
Other assets(3) | 202,838 | 197,856 | ||||||||||||||||||||||
Total assets | $ | 5,960,801 | $ | 5,164,464 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 1,245,745 | 7,187 | 2.34 | $ | 1,074,303 | 3,527 | 1.33 | ||||||||||||||||
Savings deposits | 175,796 | 228 | .53 | 173,424 | 168 | .39 | ||||||||||||||||||
Time deposits less than $100,000 | 1,270,078 | 12,035 | 3.84 | 995,389 | 6,462 | 2.63 | ||||||||||||||||||
Time deposits greater than $100,000 | 979,665 | 10,409 | 4.31 | 592,240 | 4,369 | 2.99 | ||||||||||||||||||
Brokered deposits | 315,090 | 2,942 | 3.79 | 347,053 | 2,177 | 2.54 | ||||||||||||||||||
Total interest-bearing deposits | 3,986,374 | 32,801 | 3.34 | 3,182,409 | 16,703 | 2.13 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Federal funds purchased & other borrowings | 128,602 | 1,476 | 4.65 | 139,574 | 885 | 2.57 | ||||||||||||||||||
Federal Home Loan Bank advances | 586,722 | 6,629 | 4.58 | 770,715 | 5,657 | 2.98 | ||||||||||||||||||
Long-term debt | 111,869 | 2,159 | 7.83 | 111,868 | 2,122 | 7.69 | ||||||||||||||||||
Total borrowed funds | 827,193 | 10,264 | 5.03 | 1,022,157 | 8,664 | 3.44 | ||||||||||||||||||
Total interest-bearing liabilities | 4,813,567 | 43,065 | 3.63 | 4,204,566 | 25,367 | 2.45 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 627,436 | 535,507 | ||||||||||||||||||||||
Other liabilities | 40,838 | 26,227 | ||||||||||||||||||||||
Total liabilities | 5,481,841 | 4,766,300 | ||||||||||||||||||||||
Stockholders’ equity | 478,960 | 398,164 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,960,801 | $ | 5,164,464 | ||||||||||||||||||||
Net interest revenue | $ | 59,732 | $ | 48,282 | ||||||||||||||||||||
Net interest-rate spread | 3.84 | % | 3.73 | % | ||||||||||||||||||||
Net interest margin(4) | 4.33 | % | 4.05 | % | ||||||||||||||||||||
(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 tax rate and the federal tax adjusted state tax rate. | |
(2) | Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued. | |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized losses of $14.2 million in 2006 and pretax unrealized gains of $3.1 million in 2005 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. |