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
17% GAIN IN DILUTED EARNINGS PER SHARE
FOR SECOND QUARTER 2006
17% GAIN IN DILUTED EARNINGS PER SHARE
FOR SECOND QUARTER 2006
HIGHLIGHTS:
• | Record Second Quarter Earnings |
Diluted Earnings per Share of $.41 — Up 17% Net Income of $17 Million — Up 23% Return on Tangible Equity of 17.68% Total Assets Rise to $6.3 Billion |
• | Strong Loan Demand and Rise in Net Interest Margin Drove Performance |
BLAIRSVILLE, GA, July 25, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third-largest bank holding company, today announced record financial results for the second quarter of 2006. Compared with the second quarter of 2005, the company achieved a 16% increase in total revenue, a 23% rise in net income and a 17% gain in diluted earnings per share.
For the second quarter of 2006, net income was $16.9 million compared with $13.8 million a year earlier. Diluted earnings per share increased to $.41 from $.35 a year ago. Total revenue, on a taxable equivalent basis, was $70.6 million compared with $60.6 million for the second quarter of 2005. Return on tangible equity was 17.68% and return on assets was 1.10%, compared with 19.21% and 1.03%, respectively, a year ago.
“Strong demand for loans and deposits continued across all markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “Loans increased $226 million during the second quarter, or 20% on an annualized basis, and helped drive the increase in net interest revenue. We more than funded our loan growth by adding $228 million of deposits this quarter — more than half were core deposits. The strong loan growth pushed total assets to $6.3 billion, a 14% increase from a year ago. Our net interest margin was 4.34%, up 22 basis points from a year ago and up 1 basis point from last quarter, as rising short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet.”
For the first six months of 2006, net income increased $5.8 million to $33.0 million, up 21% from $27.2 million for the first half of 2005. Diluted earnings per share of $.80 increased $.11, or 16%, from $.69 for the first six months of 2005. Total revenue, on a taxable equivalent basis, was $138.6 million, up 19% from $116.7 million a year ago. Return on tangible equity was 17.67% and return on assets was 1.10%, compared with 19.52% and 1.04%, respectively, a year ago.
At June 30, 2006, total loans were $4.8 billion, up $737 million, or 18%, from a year ago. All of the loan growth was organic. “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. The most recent example of this strategy was the announcement yesterday that we will open our 25th community bank in Cleveland, Tennessee, along the high-growth I-75 corridor. Led by veteran Cleveland bankers Mickey Torbett and DeWayne Morrow, our new bank downtown will begin full-service operations as United Community Bank — Cleveland later this month with a total of ten seasoned, local bankers. I am excited to welcome this fine team to our family of United banks and look forward to their growth opportunities in this attractive market.”
Tallent continued, “De novo expansion will continue to allow us to open offices in selective new markets and expand our franchise. Earlier in the year, we opened three offices in Georgia — a
second location in Savannah, a fifth location in Hall County, and a commercial loan office in Jasper, just north of Atlanta in Pickens County. Earlier this quarter, we announced an agreement to acquire two banking offices in Sylva and Bryson City, North Carolina and we expect the transaction to close in September. Both of these offices are in markets where we already have a presence and a deep knowledge of the banking environment.”
“The highest level of customer service continues to be our distinguishing characteristic,” Tallent said. “Our relentless focus on service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of 75%. This personal, caring brand of service is invaluable in building deposits through customer referrals while also maintaining and growing our long-term relationships with existing customers.”
For the second quarter, taxable equivalent net interest revenue of $62.3 million was up $11.1 million, or 22%, from the second quarter of 2005. Taxable equivalent net interest margin for the second quarter was 4.34%, compared with 4.12% a year ago and 4.33% for the first quarter of 2006. “Our balance sheet has remained slightly asset sensitive, which allowed us to benefit from the rise in interest rates as reflected in the expansion of our margin throughout 2005 and into the first half of 2006,” Tallent said.
The second quarter provision for loan losses was $3.7 million, which increased $900,000 from a year earlier and $200,000 from the first quarter of 2006. Annualized net charge-offs to average loans were 9 basis points for the second quarter, compared with 11 basis points for the first quarter of 2006 and 14 basis points for the second quarter of 2005. At quarter-end, non-performing assets totaled $8.8 million compared with $8.4 million at the end of the first quarter of 2006 and $13.5 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the first quarter of 2006 and down from the 24 basis points at June 30, 2005. “Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success,”
Tallent said.
Tallent said.
Fee revenue of $12.0 million was down slightly from $12.2 million for the second quarter of 2005, primarily due to $530,000 in gains from the sale of two banking offices in the second quarter of 2005. Also impacting fee revenue this quarter was $280,000 in charges for the prepayment of Federal Home Loan Bank advances that were part of our balance sheet management activities. Service charges and fees on deposit accounts increased $548,000 to $6.8 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Mortgage fees, consulting fees and brokerage fees remain substantially unchanged from a year ago.
Operating expenses of $43.5 million increased $4.7 million, or 12%, from the second quarter of 2005. Salaries and employee benefit costs of $28.3 million increased $3.0 million, or 12%, from the second quarter of 2005 due to the increase in staff to support our significant expansion efforts and business growth. Communications and equipment expenses increased $616,000 to $3.7 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Advertising and public relations expense rose $249,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in new markets. Occupancy expense increased $198,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. The increase in other operating expense was primarily due to write-downs on foreclosed real estate properties and higher costs to support business growth.
“We had a positive operating leverage of four percent this quarter,” Tallent said. “Also, our operating efficiency ratio of 58.53% was within our long-term efficiency goal of 58% to 60%. This reflects the continued strength of our existing franchise, strong revenue growth and disciplined expense controls, which more than offset the cost of reinvesting for the future through our de novo expansion efforts,” Tallent said.
“Our outlook for the balance of 2006 is for earnings per share growth at the upper-end of our long-term goal of 12% to 15%,” Tallent said. “We anticipate core loan growth to be slightly above our targeted range of 10% to 14%. Our net interest margin has benefited from rising short-term interest rates; however, we expect the margin could decline slightly in the second half of
2006, due to further pricing competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality.”
“Our results for the first half of 2006 are leading towards another year of strong growth and superior operating performance,” Tallent stated. “We are committed to excellent customer service while maintaining 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.”
Conference Call
United Community Banks will hold a conference call on Tuesday, July 25, 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) 700-7441 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 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 $6.3 billion and operates 25 community banks with 94 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 Global Select Market under the symbol UCBI. Additional information may be found at the company’s web site at 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.’s annual report filed on Form 10-K with the Securities and Exchange Commission.
(Tables Follow)
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
Selected Financial Information
Second | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | Quarter | For the Six | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Second | First | Fourth | Third | Second | 2006-2005 | Months Ended | 2006-2005 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2006 | 2005 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 111,728 | $ | 102,797 | $ | 95,465 | $ | 89,003 | $ | 80,701 | $ | 214,525 | $ | 154,350 | ||||||||||||||||||||||
Interest expense | 49,407 | 43,065 | 38,576 | 34,033 | 29,450 | 92,472 | 54,817 | |||||||||||||||||||||||||||||
Net interest revenue | 62,321 | 59,732 | 56,889 | 54,970 | 51,251 | 22 | % | 122,053 | 99,533 | 23 | % | |||||||||||||||||||||||||
Provision for loan losses | 3,700 | 3,500 | 3,500 | 3,400 | 2,800 | 7,200 | 5,200 | |||||||||||||||||||||||||||||
Fee revenue | 11,976 | 11,758 | 11,373 | 12,396 | 12,179 | (2 | ) | 23,734 | 22,379 | 6 | ||||||||||||||||||||||||||
Total revenue | 70,597 | 67,990 | 64,762 | 63,966 | 60,630 | 16 | 138,587 | 116,712 | 19 | |||||||||||||||||||||||||||
Operating expenses | 43,483 | 42,222 | 40,520 | 41,294 | 38,808 | 12 | 85,705 | 73,587 | 16 | |||||||||||||||||||||||||||
Income before taxes | 27,114 | 25,768 | 24,242 | 22,672 | 21,822 | 24 | 52,882 | 43,125 | 23 | |||||||||||||||||||||||||||
Income taxes | 10,185 | 9,729 | 9,012 | 8,374 | 8,049 | 19,914 | 15,911 | |||||||||||||||||||||||||||||
Net income | $ | 16,929 | $ | 16,039 | $ | 15,230 | $ | 14,298 | $ | 13,773 | 23 | $ | 32,968 | $ | 27,214 | 21 | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Basic earnings | $ | .42 | $ | .40 | $ | .39 | $ | .37 | $ | .36 | 17 | $ | .82 | $ | .71 | 15 | ||||||||||||||||||||
Diluted earnings | .41 | .39 | .38 | .36 | .35 | 17 | .80 | .69 | 16 | |||||||||||||||||||||||||||
Cash dividends declared | .08 | .08 | .07 | .07 | .07 | 14 | .16 | .14 | 14 | |||||||||||||||||||||||||||
Book value | 12.34 | 12.09 | 11.80 | 11.04 | 10.86 | 14 | 12.34 | 10.86 | 14 | |||||||||||||||||||||||||||
Tangible book value(2) | 9.50 | 9.25 | 8.94 | 8.05 | 7.85 | 21 | 9.50 | 7.85 | 21 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on tangible equity(1)(2)(3) | 17.68 | % | 17.66 | % | 18.20 | % | 18.90 | % | 19.21 | % | 17.67 | % | 19.52 | % | ||||||||||||||||||||||
Return on equity(1)(3) | 13.41 | 13.25 | 13.30 | 13.42 | 13.46 | 13.33 | 13.57 | |||||||||||||||||||||||||||||
Return on assets(3) | 1.10 | 1.09 | 1.05 | 1.01 | 1.03 | 1.10 | 1.04 | |||||||||||||||||||||||||||||
Net interest margin(3) | 4.34 | 4.33 | 4.20 | 4.17 | 4.12 | 4.34 | 4.09 | |||||||||||||||||||||||||||||
Efficiency ratio | 58.53 | 59.06 | 58.80 | 61.16 | 61.18 | 58.79 | 60.36 | |||||||||||||||||||||||||||||
Dividend payout ratio | 19.05 | 20.00 | 17.95 | 18.92 | 19.44 | 19.51 | 19.72 | |||||||||||||||||||||||||||||
Equity to assets | 7.95 | 8.04 | 7.69 | 7.46 | 7.65 | 7.99 | 7.68 | |||||||||||||||||||||||||||||
Tangible equity to assets(2) | 6.22 | 6.24 | 5.82 | 5.53 | 5.62 | 6.23 | 5.60 | |||||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 58,508 | $ | 55,850 | $ | 53,595 | $ | 51,888 | $ | 49,873 | $ | 58,508 | $ | 49,873 | ||||||||||||||||||||||
Non-performing assets | 8,805 | 8,367 | 12,995 | 13,565 | 13,495 | 8,805 | 13,495 | |||||||||||||||||||||||||||||
Net charge-offs | 1,042 | 1,245 | 1,793 | 1,385 | 1,380 | 2,287 | 2,523 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 1.22 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.22 | % | ||||||||||||||||||||||
Non-performing assets to total assets | .14 | .14 | .22 | .24 | .24 | .14 | .24 | |||||||||||||||||||||||||||||
Net charge-offs to average loans(3) | .09 | .11 | .16 | .13 | .14 | .10 | .13 | |||||||||||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,690,196 | $ | 4,505,494 | $ | 4,328,613 | $ | 4,169,170 | $ | 3,942,077 | 19 | $ | 4,598,355 | $ | 3,870,177 | 19 | ||||||||||||||||||||
Investment securities | 1,039,707 | 1,038,683 | 1,004,966 | 1,008,687 | 996,096 | 4 | 1,039,198 | 971,283 | 7 | |||||||||||||||||||||||||||
Earning assets | 5,758,697 | 5,574,712 | 5,383,096 | 5,239,195 | 4,986,339 | 15 | 5,667,213 | 4,903,610 | 16 | |||||||||||||||||||||||||||
Total assets | 6,159,152 | 5,960,801 | 5,769,632 | 5,608,158 | 5,338,398 | 15 | 6,060,526 | 5,251,913 | 15 | |||||||||||||||||||||||||||
Deposits | 4,842,389 | 4,613,810 | 4,354,275 | 4,078,437 | 3,853,884 | 26 | 4,728,731 | 3,786,276 | 25 | |||||||||||||||||||||||||||
Stockholders’ equity | 489,821 | 478,960 | 443,746 | 418,459 | 408,352 | 20 | 484,420 | 403,286 | 20 | |||||||||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||||||||||
Basic | 40,156 | 40,088 | 39,084 | 38,345 | 38,270 | 40,122 | 38,234 | |||||||||||||||||||||||||||||
Diluted | 41,328 | 41,190 | 40,379 | 39,670 | 39,436 | 41,259 | 39,412 | |||||||||||||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,810,277 | $ | 4,584,155 | $ | 4,398,286 | $ | 4,254,051 | $ | 4,072,811 | 18 | $ | 4,810,277 | $ | 4,072,811 | 18 | ||||||||||||||||||||
Investment securities | 974,524 | 983,846 | 990,687 | 945,922 | 990,500 | (2 | ) | 974,524 | 990,500 | (2 | ) | |||||||||||||||||||||||||
Earning assets | 5,862,614 | 5,633,381 | 5,470,718 | 5,302,532 | 5,161,067 | 14 | 5,862,614 | 5,161,067 | 14 | |||||||||||||||||||||||||||
Total assets | 6,331,136 | 6,070,596 | 5,865,756 | 5,709,666 | 5,540,242 | 14 | 6,331,136 | 5,540,242 | 14 | |||||||||||||||||||||||||||
Deposits | 4,976,650 | 4,748,438 | 4,477,600 | 4,196,369 | 3,959,226 | 26 | 4,976,650 | 3,959,226 | 26 | |||||||||||||||||||||||||||
Stockholders’ equity | 496,297 | 485,414 | 472,686 | 424,000 | 415,994 | 19 | 496,297 | 415,994 | 19 | |||||||||||||||||||||||||||
Common shares outstanding | 40,179 | 40,119 | 40,020 | 38,383 | 38,283 | 40,179 | 38,283 |
(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(unaudited)
Consolidated Statement of Income(unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share data) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 99,080 | $ | 69,446 | $ | 189,445 | $ | 132,913 | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 11,521 | 10,190 | 22,839 | 19,204 | ||||||||||||
Tax exempt | 509 | 528 | 1,023 | 1,053 | ||||||||||||
Federal funds sold and deposits in banks | 162 | 150 | 320 | 409 | ||||||||||||
Total interest revenue | 111,272 | 80,314 | 213,627 | 153,579 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand | 8,956 | 4,379 | 16,143 | 7,906 | ||||||||||||
Savings | 226 | 174 | 454 | 342 | ||||||||||||
Time | 29,599 | 15,019 | 54,985 | 28,027 | ||||||||||||
Total deposit interest expense | 38,781 | 19,572 | 71,582 | 36,275 | ||||||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 2,078 | 1,121 | 3,554 | 2,006 | ||||||||||||
Federal Home Loan Bank advances | 6,380 | 6,565 | 13,009 | 12,222 | ||||||||||||
Long-term debt | 2,168 | 2,192 | 4,327 | 4,314 | ||||||||||||
Total interest expense | 49,407 | 29,450 | 92,472 | 54,817 | ||||||||||||
Net interest revenue | 61,865 | 50,864 | 121,155 | 98,762 | ||||||||||||
Provision for loan losses | 3,700 | 2,800 | 7,200 | 5,200 | ||||||||||||
Net interest revenue after provision for loan losses | 58,165 | 48,064 | 113,955 | 93,562 | ||||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 6,828 | 6,280 | 13,181 | 11,894 | ||||||||||||
Mortgage loan and other related fees | 1,708 | 1,742 | 3,221 | 3,225 | ||||||||||||
Consulting fees | 1,572 | 1,685 | 3,156 | 3,167 | ||||||||||||
Brokerage fees | 796 | 768 | 1,646 | 1,210 | ||||||||||||
Securities losses, net | — | (2 | ) | (3 | ) | (2 | ) | |||||||||
Other | 1,072 | 1,706 | 2,533 | 2,885 | ||||||||||||
Total fee revenue | 11,976 | 12,179 | 23,734 | 22,379 | ||||||||||||
Total revenue | 70,141 | 60,243 | 137,689 | 115,941 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 28,307 | 25,274 | 55,950 | 47,509 | ||||||||||||
Communications and equipment | 3,731 | 3,115 | 7,107 | 6,097 | ||||||||||||
Occupancy | 2,916 | 2,718 | 5,848 | 5,386 | ||||||||||||
Advertising and public relations | 1,948 | 1,699 | 3,836 | 3,062 | ||||||||||||
Postage, printing and supplies | 1,289 | 1,369 | 2,805 | 2,720 | ||||||||||||
Professional fees | 1,069 | 1,071 | 2,230 | 2,109 | ||||||||||||
Amortization of intangibles | 503 | 503 | 1,006 | 1,006 | ||||||||||||
Other | 3,720 | 3,059 | 6,923 | 5,698 | ||||||||||||
Total operating expenses | 43,483 | 38,808 | 85,705 | 73,587 | ||||||||||||
Income before income taxes | 26,658 | 21,435 | 51,984 | 42,354 | ||||||||||||
Income taxes | 9,729 | 7,662 | 19,016 | 15,140 | ||||||||||||
Net income | $ | 16,929 | $ | 13,773 | $ | 32,968 | $ | 27,214 | ||||||||
Net income available to common stockholders | $ | 16,924 | $ | 13,767 | $ | 32,958 | $ | 27,201 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | .42 | $ | .36 | $ | .82 | $ | .71 | ||||||||
Diluted | .41 | .35 | .80 | .69 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 40,156 | 38,270 | 40,122 | 38,234 | ||||||||||||
Diluted | 41,328 | 39,436 | 41,259 | 39,412 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
Consolidated Balance Sheet
June 30, | December 31, | June 30, | ||||||||||
(in thousands, except share and per share data) | 2006 | 2005 | 2005 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 159,954 | $ | 121,963 | $ | 117,478 | ||||||
Interest-bearing deposits in banks | 21,948 | 20,607 | 17,451 | |||||||||
Cash and cash equivalents | 181,902 | 142,570 | 134,929 | |||||||||
Securities available for sale | 974,524 | 990,687 | 990,500 | |||||||||
Mortgage loans held for sale | 24,000 | 22,335 | 34,095 | |||||||||
Loans, net of unearned income | 4,810,277 | 4,398,286 | 4,072,811 | |||||||||
Less allowance for loan losses | 58,508 | 53,595 | 49,873 | |||||||||
Loans, net | 4,751,769 | 4,344,691 | 4,022,938 | |||||||||
Premises and equipment, net | 124,018 | 112,887 | 105,469 | |||||||||
Accrued interest receivable | 44,187 | 37,197 | 31,909 | |||||||||
Goodwill and other intangible assets | 117,646 | 118,651 | 119,617 | |||||||||
Other assets | 113,090 | 96,738 | 100,785 | |||||||||
Total assets | $ | 6,331,136 | $ | 5,865,756 | $ | 5,540,242 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 662,463 | $ | 602,525 | $ | 590,306 | ||||||
Interest-bearing demand | 1,305,479 | 1,264,947 | 1,141,115 | |||||||||
Savings | 173,985 | 175,453 | 177,822 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,388,009 | 1,218,277 | 1,041,680 | |||||||||
Greater than $100,000 | 1,106,359 | 895,466 | 696,941 | |||||||||
Brokered | 340,355 | 320,932 | 311,362 | |||||||||
Total deposits | 4,976,650 | 4,477,600 | 3,959,226 | |||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 249,552 | 122,881 | 219,218 | |||||||||
Federal Home Loan Bank advances | 458,587 | 635,616 | 800,316 | |||||||||
Long-term debt | 111,869 | 111,869 | 111,869 | |||||||||
Accrued expenses and other liabilities | 38,181 | 45,104 | 33,619 | |||||||||
Total liabilities | 5,834,839 | 5,393,070 | 5,124,248 | |||||||||
Shareholders’ equity: | ||||||||||||
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200, 32,200 and 37,200 shares issued and outstanding | 322 | 322 | 372 | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; 40,178,533, 40,019,853 and 38,407,874 shares issued | 40,179 | 40,020 | 38,408 | |||||||||
Common stock issuable; 19,712 and 9,948 shares as of June 30, 2006 and December 31, 2005, respectively | 544 | 271 | — | |||||||||
Capital surplus | 197,235 | 193,355 | 154,480 | |||||||||
Retained earnings | 277,086 | 250,563 | 226,546 | |||||||||
Treasury stock; 124,665 shares as of June 30, 2005, at cost | — | — | (2,517 | ) | ||||||||
Accumulated other comprehensive loss | (19,069 | ) | (11,845 | ) | (1,295 | ) | ||||||
Total shareholders’ equity | 496,297 | 472,686 | 415,994 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,331,136 | $ | 5,865,756 | $ | 5,540,242 | ||||||
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
For the Three Months Ended June 30,
2006 | 2005 | |||||||||||||||||||||||
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) | $ | 4,690,196 | $ | 98,965 | 8.46 | % | $ | 3,942,077 | $ | 69,130 | 7.03 | % | ||||||||||||
Taxable securities(3) | 991,701 | 11,521 | 4.65 | 946,543 | 10,190 | 4.31 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 48,006 | 837 | 6.98 | 49,553 | 869 | 7.01 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 28,794 | 405 | 5.63 | 48,166 | 512 | 4.25 | ||||||||||||||||||
Total interest-earning assets | 5,758,697 | 111,728 | 7.78 | 4,986,339 | 80,701 | 6.49 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (57,654 | ) | (49,576 | ) | ||||||||||||||||||||
Cash and due from banks | 129,389 | 94,488 | ||||||||||||||||||||||
Premises and equipment | 120,870 | 103,439 | ||||||||||||||||||||||
Other assets(3) | 207,850 | 203,708 | ||||||||||||||||||||||
Total assets | $ | 6,159,152 | $ | 5,338,398 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 1,282,798 | 8,956 | 2.80 | $ | 1,109,861 | 4,379 | 1.58 | ||||||||||||||||
Savings deposits | 174,533 | 226 | .52 | 176,624 | 174 | .40 | ||||||||||||||||||
Time deposits less than $100,000 | 1,344,861 | 14,066 | 4.20 | 1,025,236 | 7,307 | 2.86 | ||||||||||||||||||
Time deposits greater than $100,000 | 1,061,249 | 12,147 | 4.59 | 661,214 | 5,515 | 3.35 | ||||||||||||||||||
Brokered deposits | 327,962 | 3,386 | 4.14 | 311,933 | 2,197 | 2.83 | ||||||||||||||||||
Total interest-bearing deposits | 4,191,403 | 38,781 | 3.71 | 3,284,868 | 19,572 | 2.39 | ||||||||||||||||||
Federal funds purchased & other borrowings | 165,563 | 2,078 | 5.03 | 149,438 | 1,121 | 3.01 | ||||||||||||||||||
Federal Home Loan Bank advances | 506,531 | 6,380 | 5.05 | 785,523 | 6,565 | 3.35 | ||||||||||||||||||
Long-term debt | 111,869 | 2,168 | 7.77 | 111,868 | 2,192 | 7.86 | ||||||||||||||||||
Total borrowed funds | 783,963 | 10,626 | 5.44 | 1,046,829 | 9,878 | 3.78 | ||||||||||||||||||
Total interest-bearing liabilities | 4,975,366 | 49,407 | 3.98 | 4,331,697 | 29,450 | 2.73 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 650,986 | 569,016 | ||||||||||||||||||||||
Other liabilities | 42,979 | 29,333 | ||||||||||||||||||||||
Total liabilities | 5,669,331 | 4,930,046 | ||||||||||||||||||||||
Stockholders’ equity | 489,821 | 408,352 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,159,152 | $ | 5,338,398 | ||||||||||||||||||||
Net interest revenue | $ | 62,321 | $ | 51,251 | ||||||||||||||||||||
Net interest-rate spread | 3.80 | % | 3.76 | % | ||||||||||||||||||||
Net interest margin(4) | 4.34 | % | 4.12 | % | ||||||||||||||||||||
(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 $21.6 million and $782,000 in 2006 and 2005, respectively, are included in other assets for purposes of this presentation. | |
(4) | Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. |
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis (continued)
For the Six Months Ended June 30,
For the Six Months Ended June 30,
2006 | 2005 | |||||||||||||||||||||||
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) | $ | 4,598,355 | $ | 189,219 | 8.30 | % | $ | 3,870,177 | $ | 132,266 | 6.89 | % | ||||||||||||
Taxable securities(3) | 990,698 | 22,839 | 4.61 | 921,564 | 19,204 | 4.17 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 48,500 | 1,683 | 6.94 | 49,719 | 1,733 | 6.97 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 29,660 | 784 | 5.29 | 62,150 | 1,147 | 3.69 | ||||||||||||||||||
Total interest-earning assets | 5,667,213 | 214,525 | 7.63 | 4,903,610 | 154,350 | 6.34 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (56,247 | ) | (48,869 | ) | ||||||||||||||||||||
Cash and due from banks | 125,957 | 93,446 | ||||||||||||||||||||||
Premises and equipment | 118,245 | 102,927 | ||||||||||||||||||||||
Other assets(3) | 205,358 | 200,799 | ||||||||||||||||||||||
Total assets | $ | 6,060,526 | $ | 5,251,913 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 1,264,373 | $ | 16,143 | 2.57 | $ | 1,092,181 | $ | 7,906 | 1.46 | ||||||||||||||
Savings deposits | 175,161 | 454 | .52 | 175,033 | 342 | .39 | ||||||||||||||||||
Time deposits less than $100,000 | 1,307,676 | 26,101 | 4.03 | 1,010,395 | 13,769 | 2.75 | ||||||||||||||||||
Time deposits greater than $100,000 | 1,020,682 | 22,556 | 4.46 | 626,918 | 9,884 | 3.18 | ||||||||||||||||||
Brokered deposits | 321,562 | 6,328 | 3.97 | 329,396 | 4,374 | 2.68 | ||||||||||||||||||
Total interest-bearing deposits | 4,089,454 | 71,582 | 3.53 | 3,233,923 | 36,275 | 2.26 | ||||||||||||||||||
Federal funds purchased & other borrowings | 147,185 | 3,554 | 4.87 | 144,533 | 2,006 | 2.80 | ||||||||||||||||||
Federal Home Loan Bank advances | 546,405 | 13,009 | 4.80 | 778,160 | 12,222 | 3.17 | ||||||||||||||||||
Long-term debt | 111,868 | 4,327 | 7.80 | 111,868 | 4,314 | 7.78 | ||||||||||||||||||
Total borrowed funds | 805,458 | 20,890 | 5.23 | 1,034,561 | 18,542 | 3.61 | ||||||||||||||||||
Total interest-bearing liabilities | 4,894,912 | 92,472 | 3.81 | 4,268,484 | 54,817 | 2.59 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 639,276 | 552,354 | ||||||||||||||||||||||
Other liabilities | 41,918 | 27,789 | ||||||||||||||||||||||
Total liabilities | 5,576,106 | 4,848,627 | ||||||||||||||||||||||
Stockholders’ equity | 484,420 | 403,286 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,060,526 | $ | 5,251,913 | ||||||||||||||||||||
Net interest revenue | $ | 122,053 | $ | 99,533 | ||||||||||||||||||||
Net interest-rate spread | 3.82 | % | 3.75 | % | ||||||||||||||||||||
Net interest margin(4) | 4.34 | % | 4.09 | % | ||||||||||||||||||||
(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 $17.9 million in 2006 and pretax unrealized gains of $1.1 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. |