Exhibit 99.1
![(UNITED COMMUNITY BANKS LOGO)](https://capedge.com/proxy/8-K/0000950144-06-009729/g03818g0381801.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
17 PERCENT GAIN IN DILUTED EARNINGS PER SHARE
FOR THIRD QUARTER 2006
17 PERCENT GAIN IN DILUTED EARNINGS PER SHARE
FOR THIRD QUARTER 2006
HIGHLIGHTS:
• | Record Third Quarter Earnings Diluted Earnings per Share of 42 cents – Up 17 Percent Net Income of $17.4 Million – Up 22 Percent Return on Tangible Equity of 17.29 Percent Total Assets Rise to $6.5 Billion | |
• | Strong Loan and Deposit Growth and Rise in Net Interest Margin Drive Performance | |
• | 25th Community Bank now open in Cleveland, Tennessee |
BLAIRSVILLE, GA, October 24, 2006 – United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third-largest bank holding company, today announced record financial results for the third quarter of 2006. Compared with the third quarter of 2005, the company achieved a 14 percent increase in total revenue, a 22 percent rise in net income and a 17 percent gain in diluted earnings per share.
For the third quarter of 2006, net income was $17.4 million compared with $14.3 million a year earlier. Diluted earnings per share increased to 42 cents from 36 cents a year ago. Total revenue, on a taxable equivalent basis, was $72.8 million compared with $64.0 million for the third quarter of 2005. Return on tangible equity was 17.29 percent and return on assets was 1.09 percent, compared with 18.90 percent and 1.01 percent, respectively, a year ago.
“Our winning combination of seasoned bankers and attractive markets continues to produce strong business growth,” said Jimmy Tallent, president and chief executive officer of United Community Banks. “Loans increased $155 million during the third quarter, up 17 percent from a year ago, and helped drive the increase in net interest revenue. We funded our loan growth with customer deposits by more than two to one, adding $312 million this quarter. The strong growth pushed total assets to $6.5 billion, a 13 percent increase from a year ago while substantially lessening our use of wholesale borrowings. Our net interest margin was 4.30 percent, up 13 basis points from a year ago as rising short-term interest rates positively affected our slightly asset-sensitive balance sheet.”
For the first nine months of 2006, net income increased $8.9 million to $50.4 million, up 21 percent from $41.5 million for the first nine months of 2005. Diluted earnings per share of $1.22 increased 17 cents, or 16 percent, from $1.05 for the first nine months of 2005. Total revenue, on a taxable equivalent basis, was $211.4 million, up 17 percent from $180.7 million a year ago. Return on tangible equity was 17.54 percent and return on assets was 1.09 percent, compared with 19.30 percent and 1.03 percent, respectively, a year ago.
At September 30, 2006, total loans were $5.0 billion, up $711 million, or 17 percent, from a year ago. With the exception of $8 million in loans received through branch acquisitions during the quarter, 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. In the third quarter, we opened our 25th community bank, United Community Bank – Cleveland, which complements our existing franchise along the high-growth I-75 industrial corridor in east Tennessee. This new bank is led by President Mickey Torbett who is joined by nine other local veteran bankers. United now has a stronger foothold in this attractive market that is among Tennessee’s is leaders in number of manufacturing companies.”
“Also during the quarter, we opened a new banking office in Cumming, which is located in Forsyth County on the north side of metro Atlanta,” added Tallent. “We expanded our commercial loan office in Jasper, in Pickens County, to a full-service banking office. This commercial loan office was opened in the first quarter of 2006, along with a banking office in Savannah and Hall County, Georgia. We continue to look for opportunities to expand our franchise through de novo locations in both new and existing markets.”
Tallent continued, “Our balanced growth strategy also includes selective acquisitions. During the third quarter, we completed the acquisition of two banking offices in Sylva and Bryson City, North Carolina, expanding the customer base in those markets. Also, we announced an agreement to acquire Southern Bancorp, Inc., and its wholly owned subsidiary, Southern National Bank. Southern National Bank has two offices in Marietta and Canton, located in fast-growing Cobb and Cherokee counties on the northwest side of metro Atlanta.”
“With a strong management team and assets of $346 million, Southern National Bank significantly leverages our presence in these northwest metro Atlanta markets, especially Cherokee County,” Tallent said. “First, when the transaction is completed in the fourth quarter, it will provide us with the opportunity to form a new community bank in Cherokee County by adding their Canton office to our existing office in that county. Steve Holcomb, the current president of Southern National, will become the president of our 26th community bank, United Community Bank – Cherokee. Holcomb and his team of 13 Cherokee County bankers’ have over 300 years of experience in that local community, where United’s deposit market share will improve from fifteenth to ninth. We have a great opportunity to significantly expand our franchise in Cherokee County over the next year and beyond. Second, it will allow us to add their downtown Marietta office to our four banking offices in Cobb County. This will strengthen our presence in Marietta and Cobb County, and increase our deposit market share from fourteenth to seventh,” added Tallent.
“In every one of our communities, 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 percent, well above the comparable
industry average of 75 percent. 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 third quarter, taxable equivalent net interest revenue of $64.4 million was up $9.4 million, or 17 percent, from the third quarter of 2005. Taxable equivalent net interest margin for the third quarter was 4.30 percent, compared with 4.17 percent a year ago. “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 from a year ago,” Tallent said.
The third quarter provision for loan losses was $3.7 million, an increase of $300,000 from a year earlier, and equal to the second quarter of 2006. Annualized net charge-offs to average loans was 11 basis points for the third quarter, compared with nine basis points for the second quarter of 2006 and 13 basis points for the third quarter of 2005. At quarter-end, non-performing assets totaled $9.3 million compared with $8.8 million at the end of the second quarter of 2006 and $13.6 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the second quarter of 2006 and down from 24 basis points at September 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.
Fee revenue of $12.1 million was down slightly from $12.4 million for the third quarter of 2005, primarily due to lower mortgage fees and losses from the sale of securities. Mortgage fees were down from a year ago due to a less favorable interest rate environment leading to lower refinancing activity. Also impacting fee revenue this quarter was a $290,000 charge for the prepayment of Federal Home Loan Bank advances that was part of our balance sheet management activities. Service charges and fees on deposit accounts increased $287,000 to $6.9 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Consulting fees and brokerage fees were each up more than $200,000 from a year ago reflecting growth in both businesses.
Operating expenses of $44.9 million increased $3.6 million, or 9 percent, from the third quarter of 2005. Salaries and employee benefit costs of $29.6 million increased $3.3 million, or 12 percent, from the third quarter of 2005 due to the increase in staff to support our expansion efforts and business growth. Communications and equipment expenses increased $379,000 to $3.9 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Occupancy expense increased $202,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. Advertising and public relations expense rose $199,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in selected markets.
“We had a positive operating leverage of 5 percent this quarter,” Tallent said. “Also, our operating efficiency ratio of 58.4 percent was within our long-term efficiency goal of 58 to 60 percent. 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.”
“Our outlook for the fourth quarter of 2006 is for earnings per share growth slightly above our long-term goal of 12 to 15 percent. For 2007, our outlook for growth is within this range of 12 to 15 percent,” Tallent said. “We anticipate core loan growth for the fourth quarter and next year to be within a range of 10 to 12 percent. Our net interest margin has benefited from rising short-term interest rates; however, we expect that the margin through next year will continue to stabilize and possibly compress slightly from the third quarter level due to further price competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality.”
“Our results for the first nine months of 2006 are leading toward another year of strong growth and superior operating performance,” Tallent concluded. “We are committed to excellent customer service while maintaining solid credit quality as we continue our efforts to build shareholder value through strong internal growth complemented by selective de novo and merger expansion.”
Conference Call
United Community Banks will hold a conference call on Tuesday, October 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 the remainder of 2006 and next year. The telephone number for the conference call is (800) 299-6183 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 $6.5 billion and operates 25 community banks with 96 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
Third | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | Quarter | For the Nine | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Third | Second | First | Fourth | Third | 2006-2005 | Months Ended | 2006-2005 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2006 | 2005 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 119,802 | $ | 111,728 | $ | 102,797 | $ | 95,465 | $ | 89,003 | $ | 334,327 | $ | 243,353 | ||||||||||||||||||||||
Interest expense | 55,431 | 49,407 | 43,065 | 38,576 | 34,033 | 147,903 | 88,850 | |||||||||||||||||||||||||||||
Net interest revenue | 64,371 | 62,321 | 59,732 | 56,889 | 54,970 | 17 | % | 186,424 | 154,503 | 21 | % | |||||||||||||||||||||||||
Provision for loan losses | 3,700 | 3,700 | 3,500 | 3,500 | 3,400 | 10,900 | 8,600 | |||||||||||||||||||||||||||||
Fee revenue | 12,146 | 11,976 | 11,758 | 11,373 | 12,396 | (2 | ) | 35,880 | 34,775 | 3 | ||||||||||||||||||||||||||
Total revenue | 72,817 | 70,597 | 67,990 | 64,762 | 63,966 | 14 | 211,404 | 180,678 | 17 | |||||||||||||||||||||||||||
Operating expenses | 44,939 | 43,483 | 42,222 | 40,520 | 41,294 | 9 | 130,644 | 114,881 | 14 | |||||||||||||||||||||||||||
Income before taxes | 27,878 | 27,114 | 25,768 | 24,242 | 22,672 | 23 | 80,760 | 65,797 | 23 | |||||||||||||||||||||||||||
Income taxes | 10,465 | 10,185 | 9,729 | 9,012 | 8,374 | 30,379 | 24,285 | |||||||||||||||||||||||||||||
Net income | $ | 17,413 | $ | 16,929 | $ | 16,039 | $ | 15,230 | $ | 14,298 | 22 | $ | 50,381 | $ | 41,512 | 21 | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Basic earnings | $ | .43 | $ | .42 | $ | .40 | $ | .39 | $ | .37 | 16 | $ | 1.25 | $ | 1.08 | 16 | ||||||||||||||||||||
Diluted earnings | .42 | .41 | .39 | .38 | .36 | 17 | 1.22 | 1.05 | 16 | |||||||||||||||||||||||||||
Cash dividends declared | .08 | .08 | .08 | .07 | .07 | 14 | .24 | .21 | 14 | |||||||||||||||||||||||||||
Book value | 13.07 | 12.34 | 12.09 | 11.80 | 11.04 | 18 | 13.07 | 11.04 | 18 | |||||||||||||||||||||||||||
Tangible book value(2) | 10.16 | 9.50 | 9.25 | 8.94 | 8.05 | 26 | 10.16 | 8.05 | 26 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on tangible equity(1)(2)(3) | 17.29 | % | 17.68 | % | 17.66 | % | 18.20 | % | 18.90 | % | 17.54 | % | 19.30 | % | ||||||||||||||||||||||
Return on equity(1)(3) | 13.22 | 13.41 | 13.25 | 13.30 | 13.42 | 13.29 | 13.51 | |||||||||||||||||||||||||||||
Return on assets(3) | 1.09 | 1.10 | 1.09 | 1.05 | 1.01 | 1.09 | 1.03 | |||||||||||||||||||||||||||||
Net interest margin(3) | 4.30 | 4.34 | 4.33 | 4.20 | 4.17 | 4.32 | 4.12 | |||||||||||||||||||||||||||||
Efficiency ratio | 58.44 | 58.53 | 59.06 | 58.80 | 61.16 | 58.67 | 60.64 | |||||||||||||||||||||||||||||
Dividend payout ratio | 18.60 | 19.05 | 20.00 | 17.95 | 18.92 | 19.20 | 19.44 | |||||||||||||||||||||||||||||
Equity to assets | 8.04 | 7.95 | 8.04 | 7.69 | 7.46 | 8.01 | 7.60 | |||||||||||||||||||||||||||||
Tangible equity to assets(2) | 6.35 | 6.22 | 6.24 | 5.82 | 5.53 | 6.27 | 5.57 | |||||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 60,901 | $ | 58,508 | $ | 55,850 | $ | 53,595 | $ | 51,888 | $ | 60,901 | $ | 51,888 | ||||||||||||||||||||||
Non-performing assets | 9,347 | 8,805 | 8,367 | 12,995 | 13,565 | 9,347 | 13,565 | |||||||||||||||||||||||||||||
Net charge-offs | 1,307 | 1,042 | 1,245 | 1,793 | 1,385 | 3,594 | 3,908 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 1.23 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.23 | % | 1.22 | % | ||||||||||||||||||||||
Non-performing assets to total assets | .14 | .14 | .14 | .22 | .24 | .14 | .24 | |||||||||||||||||||||||||||||
Net charge-offs to average loans(3) | .11 | .09 | .11 | .16 | .13 | .10 | .13 | |||||||||||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,865,886 | $ | 4,690,196 | $ | 4,505,494 | $ | 4,328,613 | $ | 4,169,170 | 17 | $ | 4,688,512 | $ | 3,970,937 | 18 | ||||||||||||||||||||
Investment securities | 1,029,981 | 1,039,707 | 1,038,683 | 1,004,966 | 1,008,687 | 2 | 1,036,092 | 983,889 | 5 | |||||||||||||||||||||||||||
Earning assets | 5,942,710 | 5,758,697 | 5,574,712 | 5,383,096 | 5,239,195 | 13 | 5,760,055 | 5,016,702 | 15 | |||||||||||||||||||||||||||
Total assets | 6,350,205 | 6,159,152 | 5,960,801 | 5,769,632 | 5,608,158 | 13 | 6,158,147 | 5,371,966 | 15 | |||||||||||||||||||||||||||
Deposits | 5,085,168 | 4,842,389 | 4,613,810 | 4,354,275 | 4,078,437 | 25 | 4,848,849 | 3,884,733 | 25 | |||||||||||||||||||||||||||
Shareholders’ equity | 510,791 | 489,821 | 478,960 | 443,746 | 418,459 | 22 | 493,307 | 408,399 | 21 | |||||||||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||||||||||
Basic | 40,223 | 40,156 | 40,088 | 39,084 | 38,345 | 40,156 | 38,272 | |||||||||||||||||||||||||||||
Diluted | 41,460 | 41,328 | 41,190 | 40,379 | 39,670 | 41,327 | 39,499 | |||||||||||||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,965,365 | $ | 4,810,277 | $ | 4,584,155 | $ | 4,398,286 | $ | 4,254,051 | 17 | $ | 4,965,365 | $ | 4,254,051 | 17 | ||||||||||||||||||||
Investment securities | 980,273 | 974,524 | 983,846 | 990,687 | 945,922 | 4 | 980,273 | 945,922 | 4 | |||||||||||||||||||||||||||
Earning assets | 6,012,987 | 5,862,614 | 5,633,381 | 5,470,718 | 5,302,532 | 13 | 6,012,987 | 5,302,532 | 13 | |||||||||||||||||||||||||||
Total assets | 6,455,290 | 6,331,136 | 6,070,596 | 5,865,756 | 5,709,666 | 13 | 6,455,290 | 5,709,666 | 13 | |||||||||||||||||||||||||||
Deposits | 5,309,219 | 4,976,650 | 4,748,438 | 4,477,600 | 4,196,369 | 27 | 5,309,219 | 4,196,369 | 27 | |||||||||||||||||||||||||||
Shareholders’ equity | 526,734 | 496,297 | 485,414 | 472,686 | 424,000 | 24 | 526,734 | 424,000 | 24 | |||||||||||||||||||||||||||
Common shares outstanding | 40,269 | 40,179 | 40,119 | 40,020 | 38,383 | 40,269 | 38,383 |
(1) | Net income available to common shareholders, 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(in thousands, except per share data) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 106,688 | $ | 77,470 | $ | 296,133 | $ | 210,383 | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 11,822 | 10,340 | 34,661 | 29,544 | ||||||||||||
Tax exempt | 474 | 520 | 1,497 | 1,573 | ||||||||||||
Federal funds sold and deposits in banks | 365 | 253 | 685 | 662 | ||||||||||||
Total interest revenue | 119,349 | 88,583 | 332,976 | 242,162 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand | 10,255 | 5,187 | 26,398 | 13,093 | ||||||||||||
Savings | 226 | 223 | 680 | 565 | ||||||||||||
Time | 34,694 | 17,653 | 89,679 | 45,680 | ||||||||||||
Total deposit interest expense | 45,175 | 23,063 | 116,757 | 59,338 | ||||||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 2,254 | 1,651 | 5,814 | 3,723 | ||||||||||||
Federal Home Loan Bank advances | 5,828 | 7,181 | 18,837 | 19,403 | ||||||||||||
Long-term debt | 2,174 | 2,138 | 6,495 | 6,386 | ||||||||||||
Total interest expense | 55,431 | 34,033 | 147,903 | 88,850 | ||||||||||||
Net interest revenue | 63,918 | 54,550 | 185,073 | 153,312 | ||||||||||||
Provision for loan losses | 3,700 | 3,400 | 10,900 | 8,600 | ||||||||||||
Net interest revenue after provision for loan losses | 60,218 | 51,150 | 174,173 | 144,712 | ||||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 6,914 | 6,627 | 20,095 | 18,521 | ||||||||||||
Mortgage loan and other related fees | 1,928 | 2,367 | 5,149 | 5,592 | ||||||||||||
Consulting fees | 2,040 | 1,777 | 5,196 | 4,944 | ||||||||||||
Brokerage fees | 784 | 571 | 2,430 | 1,781 | ||||||||||||
Securities losses, net | (382 | ) | (153 | ) | (385 | ) | (155 | ) | ||||||||
Other | 862 | 1,207 | 3,395 | 4,092 | ||||||||||||
Total fee revenue | 12,146 | 12,396 | 35,880 | 34,775 | ||||||||||||
Total revenue | 72,364 | 63,546 | 210,053 | 179,487 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 29,585 | 26,334 | 85,535 | 73,843 | ||||||||||||
Communications and equipment | 3,863 | 3,484 | 10,970 | 9,581 | ||||||||||||
Occupancy | 2,945 | 2,743 | 8,793 | 8,129 | ||||||||||||
Advertising and public relations | 1,882 | 1,683 | 5,718 | 4,745 | ||||||||||||
Postage, printing and supplies | 1,379 | 1,426 | 4,184 | 4,146 | ||||||||||||
Professional fees | 938 | 1,174 | 3,168 | 3,283 | ||||||||||||
Amortization of intangibles | 503 | 503 | 1,509 | 1,509 | ||||||||||||
Other | 3,844 | 3,947 | 10,767 | 9,645 | ||||||||||||
Total operating expenses | 44,939 | 41,294 | 130,644 | 114,881 | ||||||||||||
Income before income taxes | 27,425 | 22,252 | 79,409 | 64,606 | ||||||||||||
Income taxes | 10,012 | 7,954 | 29,028 | 23,094 | ||||||||||||
Net income | $ | 17,413 | $ | 14,298 | $ | 50,381 | $ | 41,512 | ||||||||
Net income available to common shareholders | $ | 17,408 | $ | 14,293 | $ | 50,366 | $ | 41,494 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.37 | $ | 1.25 | $ | 1.08 | ||||||||
Diluted | 0.42 | 0.36 | 1.22 | 1.05 | ||||||||||||
Dividends per common share | 0.08 | 0.07 | 0.24 | 0.21 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 40,223 | 38,345 | 40,156 | 38,272 | ||||||||||||
Diluted | 41,460 | 39,670 | 41,327 | 39,499 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
Consolidated Balance Sheet
September 30, | December 31, | September 30, | ||||||||||
(in thousands, except share and per share data) | 2006 | 2005 | 2005 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 130,038 | $ | 121,963 | $ | 139,147 | ||||||
Interest-bearing deposits in banks | 16,032 | 20,607 | 28,935 | |||||||||
Cash and cash equivalents | 146,070 | 142,570 | 168,082 | |||||||||
Securities available for sale | 980,273 | 990,687 | 945,922 | |||||||||
Mortgage loans held for sale | 21,522 | 22,335 | 28,539 | |||||||||
Loans, net of unearned income | 4,965,365 | 4,398,286 | 4,254,051 | |||||||||
Less allowance for loan losses | 60,901 | 53,595 | 51,888 | |||||||||
Loans, net | 4,904,464 | 4,344,691 | 4,202,163 | |||||||||
Premises and equipment, net | 129,217 | 112,887 | 109,468 | |||||||||
Accrued interest receivable | 47,336 | 37,197 | 36,108 | |||||||||
Goodwill and other intangible assets | 120,430 | 118,651 | 119,154 | |||||||||
Other assets | 105,978 | 96,738 | 100,230 | |||||||||
Total assets | $ | 6,455,290 | $ | 5,865,756 | $ | 5,709,666 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 666,891 | $ | 602,525 | $ | 637,296 | ||||||
Interest-bearing demand | 1,340,985 | 1,264,947 | 1,180,125 | |||||||||
Savings | 167,531 | 175,453 | 175,864 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,523,843 | 1,218,277 | 1,118,102 | |||||||||
Greater than $100,000 | 1,248,738 | 895,466 | 790,784 | |||||||||
Brokered | 361,231 | 320,932 | 294,198 | |||||||||
Total deposits | 5,309,219 | 4,477,600 | 4,196,369 | |||||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 56,026 | 122,881 | 163,646 | |||||||||
Federal Home Loan Bank advances | 412,572 | 635,616 | 775,251 | |||||||||
Long-term debt | 111,869 | 111,869 | 111,869 | |||||||||
Accrued expenses and other liabilities | 38,870 | 45,104 | 38,531 | |||||||||
Total liabilities | 5,928,556 | 5,393,070 | 5,285,666 | |||||||||
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; 40,268,604, 40,019,853 and 38,407,874 shares issued | 40,269 | 40,020 | 38,408 | |||||||||
Common stock issuable; 22,741 and 9,948 shares as of September 30, 2006 and December 31, 2005, respectively | 638 | 271 | — | |||||||||
Capital surplus | 199,773 | 193,355 | 153,712 | |||||||||
Retained earnings | 291,281 | 250,563 | 238,144 | |||||||||
Treasury stock; 24,449 shares as of September 30, 2005, at cost | — | — | (671 | ) | ||||||||
Accumulated other comprehensive loss | (5,549 | ) | (11,845 | ) | (5,965 | ) | ||||||
Total shareholders’ equity | 526,734 | 472,686 | 424,000 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,455,290 | $ | 5,865,756 | $ | 5,709,666 | ||||||
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 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) | $ | 4,865,886 | $ | 106,559 | 8.69 | % | $ | 4,169,170 | $ | 77,112 | 7.34 | % | ||||||||||||
Taxable securities(3) | 984,189 | 11,822 | 4.80 | 960,513 | 10,340 | 4.31 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 45,792 | 780 | 6.81 | 48,174 | 856 | 7.10 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 46,843 | 641 | 5.47 | 61,338 | 695 | 4.53 | ||||||||||||||||||
Total interest-earning assets | 5,942,710 | 119,802 | 8.01 | 5,239,195 | 89,003 | 6.75 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (60,606 | ) | (51,278 | ) | ||||||||||||||||||||
Cash and due from banks | 116,004 | 108,784 | ||||||||||||||||||||||
Premises and equipment | 125,423 | 106,347 | ||||||||||||||||||||||
Other assets(3) | 226,674 | 205,110 | ||||||||||||||||||||||
Total assets | $ | 6,350,205 | $ | 5,608,158 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 1,311,042 | 10,255 | 3.10 | $ | 1,164,563 | 5,187 | 1.77 | ||||||||||||||||
Savings deposits | 170,079 | 226 | .53 | 175,833 | 223 | .50 | ||||||||||||||||||
Time deposits less than $100,000 | 1,446,388 | 16,503 | 4.53 | 1,074,926 | 8,439 | 3.11 | ||||||||||||||||||
Time deposits greater than $100,000 | 1,162,207 | 14,382 | 4.91 | 736,217 | 6,779 | 3.65 | ||||||||||||||||||
Brokered deposits | 340,301 | 3,809 | 4.44 | 307,531 | 2,435 | 3.14 | ||||||||||||||||||
Total interest-bearing deposits | 4,430,017 | 45,175 | 4.05 | 3,459,070 | 23,063 | 2.65 | ||||||||||||||||||
Federal funds purchased & other borrowings | 162,372 | 2,254 | 5.51 | 185,233 | 1,651 | 3.54 | ||||||||||||||||||
Federal Home Loan Bank advances | 438,875 | 5,828 | 5.27 | 779,912 | 7,181 | 3.65 | ||||||||||||||||||
Long-term debt | 111,869 | 2,174 | 7.71 | 111,869 | 2,138 | 7.58 | ||||||||||||||||||
Total borrowed funds | 713,116 | 10,256 | 5.71 | 1,077,014 | 10,970 | 4.04 | ||||||||||||||||||
Total interest-bearing liabilities | 5,143,133 | 55,431 | 4.28 | 4,536,084 | 34,033 | 2.98 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 655,151 | 619,367 | ||||||||||||||||||||||
Other liabilities | 41,130 | 34,248 | ||||||||||||||||||||||
Total liabilities | 5,839,414 | 5,189,699 | ||||||||||||||||||||||
Shareholders’ equity | 510,791 | 418,459 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,350,205 | $ | 5,608,158 | ||||||||||||||||||||
Net interest revenue | $ | 64,371 | $ | 54,970 | ||||||||||||||||||||
Net interest-rate spread | 3.73 | % | 3.77 | % | ||||||||||||||||||||
Net interest margin(4) | 4.30 | % | 4.17 | % | ||||||||||||||||||||
(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 $2.2 million 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
For the Nine Months Ended September 30,
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 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) | $ | 4,688,512 | $ | 295,778 | 8.43 | % | $ | 3,970,937 | $ | 209,378 | 7.05 | % | ||||||||||||
Taxable securities(3) | 988,504 | 34,661 | 4.68 | 934,691 | 29,544 | 4.21 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 47,588 | 2,463 | 6.90 | 49,198 | 2,589 | 7.02 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 35,451 | 1,425 | 5.36 | 61,876 | 1,842 | 3.97 | ||||||||||||||||||
Total interest-earning assets | 5,760,055 | 334,327 | 7.76 | 5,016,702 | 243,353 | 6.48 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (57,716 | ) | (49,681 | ) | ||||||||||||||||||||
Cash and due from banks | 122,603 | 98,615 | ||||||||||||||||||||||
Premises and equipment | 120,664 | 104,079 | ||||||||||||||||||||||
Other assets(3) | 212,541 | 202,251 | ||||||||||||||||||||||
Total assets | $ | 6,158,147 | $ | 5,371,966 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Transaction accounts | $ | 1,280,101 | $ | 26,398 | 2.76 | $ | 1,116,573 | $ | 13,093 | 1.57 | ||||||||||||||
Savings deposits | 173,448 | 680 | .52 | 175,302 | 565 | .43 | ||||||||||||||||||
Time deposits less than $100,000 | 1,354,421 | 42,604 | 4.21 | 1,032,142 | 22,208 | 2.88 | ||||||||||||||||||
Time deposits greater than $100,000 | 1,068,376 | 36,938 | 4.62 | 663,751 | 16,663 | 3.36 | ||||||||||||||||||
Brokered deposits | 327,877 | 10,137 | 4.13 | 322,028 | 6,809 | 2.83 | ||||||||||||||||||
Total interest-bearing deposits | 4,204,223 | 116,757 | 3.71 | 3,309,796 | 59,338 | 2.40 | ||||||||||||||||||
Federal funds purchased & other borrowings | 152,303 | 5,814 | 5.10 | 158,249 | 3,723 | 3.15 | ||||||||||||||||||
Federal Home Loan Bank advances | 510,168 | �� | 18,837 | 4.94 | 778,750 | 19,403 | 3.33 | |||||||||||||||||
Long-term debt | 111,868 | 6,495 | 7.76 | 111,868 | 6,386 | 7.63 | ||||||||||||||||||
Total borrowed funds | 774,339 | 31,146 | 5.38 | 1,048,867 | 29,512 | 3.76 | ||||||||||||||||||
Total interest-bearing liabilities | 4,978,562 | 147,903 | 3.97 | 4,358,663 | 88,850 | 2.73 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 644,626 | 574,937 | ||||||||||||||||||||||
Other liabilities | 41,652 | 29,967 | ||||||||||||||||||||||
Total liabilities | 5,664,840 | 4,963,567 | ||||||||||||||||||||||
Shareholders’ equity | 493,307 | 408,399 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,158,147 | $ | 5,371,966 | ||||||||||||||||||||
Net interest revenue | $ | 186,424 | $ | 154,503 | ||||||||||||||||||||
Net interest-rate spread | 3.79 | % | 3.75 | % | ||||||||||||||||||||
Net interest margin(4) | 4.32 | % | 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 $19.1 million in 2006 and pretax unrealized gains of $7,000 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. |