Exhibit 99.1
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For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
13 PERCENT GAIN IN DILUTED EARNINGS PER SHARE
FOR FIRST QUARTER 2007
13 PERCENT GAIN IN DILUTED EARNINGS PER SHARE
FOR FIRST QUARTER 2007
HIGHLIGHTS:
• | Record First Quarter Earnings Diluted Earnings per Share of 44 Cents — Up 13 Percent Net Income of $19.3 Million — Up 21 Percent |
• | Loan and Fee Revenue Growth Drive Performance |
• | Completed Circling of Atlanta with Announcement of Gwinnett Acquisition |
• | Opened Two De Novo Offices |
• | Added to Standard & Poor’s SmallCap 600 Index |
BLAIRSVILLE, GA, April 17, 2007 — United Community Banks, Inc. (Nasdaq: UCBI) today announced record financial results for the first quarter of 2007. Compared with the first quarter of 2006, the company achieved an 18 percent increase in total revenue, a 21 percent rise in net income and a 13 percent gain in diluted earnings per share.
Net income was $19.3 million for the first quarter of 2007, compared with $16.0 million for the same period of 2006. Diluted earnings per share increased to 44 cents from 39 cents a year ago. Total revenue on a taxable equivalent basis was $75.8 million compared with $64.2 million for the first quarter of 2006. Return on tangible equity was 17.18 percent and return on assets was 1.11 percent, compared with 17.66 percent and 1.09 percent, respectively, a year ago.
“United Community Banks delivered another quarter of record earnings for our shareholders,” said Jimmy Tallent, president and chief executive officer. “We are especially pleased to report strong performance in light of a challenging operating environment.”
Loans increased $818 million, or 18 percent, from a year ago, including $267 million from the acquisition of Southern National Bank that closed in December 2006. Excluding acquired loans, organic loan growth was 12 percent. “Year-over-year loan growth was strong, but we experienced a slower pace during the first quarter of 2007,” Tallent said. “The slowdown was further impacted by a higher level of prepayments due to sales of customer businesses, construction developments and competitive pricing. With the slower loan growth, we have lowered our targeted range to 6 to 10 percent for the remainder of the year.”
“At the same time, we look ahead with optimism,” Tallent added. “We have a presence in 19 of the 100 fastest growing counties in the country and in four of the top 10. The population demographics are strong across our markets and employment opportunities are growing at a rapid pace in metro Atlanta.”
Tallent noted that the company more than funded first quarter loan growth with core customer deposits, adding $137 million in transaction, savings and money market accounts while allowing more expensive time deposits to run off.
Also during the first quarter, United moved to fill an important gap in its metro Atlanta footprint by signing a definitive agreement to acquire Gwinnett Commercial Group, Inc. and its wholly owned subsidiary First Bank of the South. “First Bank of the South has an exceptional banking team and is the perfect partner for our company,” Tallent said. “Its Gwinnett County presence allows us to fulfill our goal of completely encircling metro Atlanta. First Bank of the South also has locations in DeKalb, north Fulton and Walton counties, which are new metro Atlanta markets for United.”
United also continued de novo expansion during the quarter with the opening of a second office in Cleveland, Tennessee and a third office that is located on the south side of Forsyth County in
northern metro Atlanta. In addition, the company converted a loan production facility to a full-service office in the resort town of Blowing Rock in the North Carolina mountains. “We will continue to look for opportunities to expand our franchise in both new and existing markets, but at a slower pace in the near-term as we monitor trends in loan growth,” Tallent said. “De novo expansion is a key component of our balanced growth strategy for building long-term shareholder value.”
For the first quarter of 2007, taxable equivalent net interest revenue of $65.1 million reflected an increase of $9.1 million, or 16 percent, from the first quarter of 2006. Net interest margin was 3.99 percent for the first quarter of 2007 and the fourth quarter of 2006, compared with 4.06 percent for the first quarter of 2006. “Rising interest rates positively impacted our prime-rate loan portfolio over the past year,” Tallent said. “However, this impact was offset by rising wholesale borrowing costs and higher costs associated with deposit generating programs in our new markets. These successful deposit programs concluded in the fourth quarter.”
The first quarter provision for loan losses was $3.7 million, an increase of $200,000 from a year earlier and equal to the fourth quarter of 2006. Annualized net charge-offs to average loans was 11 basis points for the first quarter, equal to the first quarter of 2006 and down from 15 basis points for the fourth quarter of 2006. At quarter-end, non-performing assets totaled $14.3 million, compared with $8.4 million a year ago and $13.7 million at the end of the fourth quarter of 2006. Non-performing assets as a percentage of total assets was 20 basis points at quarter-end, compared with 19 basis points at December 31, 2006 and 14 basis points at March 31, 2006.
“Throughout most of 2006 we were at unsustainably low levels of non-performing assets,” Tallent said. “Even with the slight rise at quarter-end, we continue to operate at the lower end of our long-term historic range of 20 to 35 basis points and well below peer banks. Strong credit quality, rooted in our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success.”
Fee revenue for the first quarter grew by $2.6 million, or 22 percent, to $14.4 million from $11.8 million for the first quarter of 2006. Service charges and fees on deposit accounts increased
$900,000 to $7.3 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 rose $710,000 to $2.2 million due to higher volumes and pricing of mortgages sold. Mortgage loans closed during the first quarter were $109 million compared with $77 million for the first quarter of 2006. Consulting fees were up $163,000, or 10 percent, from a year ago reflecting strong growth primarily in the advisory services practice.
Operating expenses increased $6.4 million to $44.8 million, a 17 percent increase from the first quarter of 2006. The Southern National acquisition accounted for approximately $1.2 million of the increase. Salaries and employee benefit costs were $28.3 million, $4.4 million higher than in the first quarter of 2006. This 19 percent increase was due to the increase in staff to support expansion activities and business growth, as well as higher health care costs. Communications and equipment expenses increased $436,000 to $3.8 million due to further investments and upgrades in technology and equipment to support business growth and additional banking offices. Occupancy expense increased $259,000 to $3.2 million reflecting the increase in costs to operate additional banking offices. Postage, printing and supplies expense rose $144,000 to $1.7 million primarily due to business growth and marketing campaigns. Professional fees increased $318,000 to $1.5 million reflecting higher legal fees and the cost of various corporate initiatives.
“Our operating efficiency ratio of 56.56 percent was within our long-term efficiency goal of 56 to 58 percent,” Tallent said. “The continued strength of our existing franchise, strong revenue growth and disciplined expense controls are more than offsetting the cost of reinvesting for the future through our significant de novo expansion efforts.”
Also of note during the first quarter, United Community Banks was added to Standard and Poor’s SmallCap 600 index. The index is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure they are investable and financially viable. “We are pleased to be included in this index as it reflects our commitment to deliver superior financial performance, including solid earnings for our shareholders,” said Tallent.
“We are committed to our unique brand of customer service, solid credit quality, and building shareholder value by expanding our franchise while delivering consistent double-digit growth in earnings per share,” Tallent said. “Our 2007 outlook is for earnings per share growth at the lower end of our long-term goal of 12 to 15 percent. We anticipate loan growth to be in the range of 6 to 10 percent for the balance of 2007 and our net interest margin at the current level of four percent. This outlook assumes stable economic and rate environments and continued strong credit quality.”
Conference Call
United Community Banks will hold a conference call on Tuesday, April 17, 2007, 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 2007. The telephone number for the conference call is (866) 543-6408 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.
United Community Banks will hold a conference call on Tuesday, April 17, 2007, 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 2007. The telephone number for the conference call is (866) 543-6408 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 $7.2 billion and operates 26 community banks with 103 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.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $7.2 billion and operates 26 community banks with 103 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
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
For the Three Months Ended March 31, 2007
Selected Financial Information
For the Three Months Ended March 31, 2007
First | ||||||||||||||||||||||||
2007 | 2006 | Quarter | ||||||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | 2007-2006 | ||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest revenue | $ | 129,028 | $ | 123,463 | $ | 116,304 | $ | 107,890 | $ | 99,038 | ||||||||||||||
Interest expense | 63,923 | 60,912 | 55,431 | 49,407 | 43,065 | |||||||||||||||||||
Net interest revenue | 65,105 | 62,551 | 60,873 | 58,483 | 55,973 | 16 | % | |||||||||||||||||
Provision for loan losses | 3,700 | 3,700 | 3,700 | 3,700 | 3,500 | |||||||||||||||||||
Fee revenue | 14,382 | 13,215 | 12,146 | 11,976 | 11,758 | 22 | ||||||||||||||||||
Total revenue | 75,787 | 72,066 | 69,319 | 66,759 | 64,231 | 18 | ||||||||||||||||||
Operating expenses | 44,841 | 42,521 | 41,441 | 39,645 | 38,463 | 17 | ||||||||||||||||||
Income before taxes | 30,946 | 29,545 | 27,878 | 27,114 | 25,768 | 20 | ||||||||||||||||||
Income taxes | 11,601 | 11,111 | 10,465 | 10,185 | 9,729 | |||||||||||||||||||
Net income | $ | 19,345 | $ | 18,434 | $ | 17,413 | $ | 16,929 | $ | 16,039 | 21 | |||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||
Basic earnings | $ | .45 | $ | .45 | $ | .43 | $ | .42 | $ | .40 | 13 | |||||||||||||
Diluted earnings | .44 | .44 | .42 | .41 | .39 | 13 | ||||||||||||||||||
Cash dividends declared | .09 | .08 | .08 | .08 | .08 | 13 | ||||||||||||||||||
Book value | 14.83 | 14.37 | 13.07 | 12.34 | 12.09 | 23 | ||||||||||||||||||
Tangible book value(2) | 11.06 | 10.57 | 10.16 | 9.50 | 9.25 | 20 | ||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||
Return on tangible equity(1)(2)(3) | 17.18 | % | 17.49 | % | 17.29 | % | 17.68 | % | 17.66 | % | ||||||||||||||
Return on equity(1)(3) | 12.48 | 13.26 | 13.22 | 13.41 | 13.25 | |||||||||||||||||||
Return on assets(3) | 1.11 | 1.10 | 1.09 | 1.10 | 1.09 | |||||||||||||||||||
Net interest margin(3) | 3.99 | 3.99 | 4.07 | 4.07 | 4.06 | |||||||||||||||||||
Efficiency ratio | 56.56 | 55.93 | 56.46 | 56.27 | 56.79 | |||||||||||||||||||
Dividend payout ratio | 20.00 | 17.78 | 18.60 | 19.05 | 20.00 | |||||||||||||||||||
Equity to assets | 8.80 | 8.21 | 8.04 | 7.95 | 8.04 | |||||||||||||||||||
Tangible equity to assets(2) | 6.66 | 6.46 | 6.35 | 6.22 | 6.24 | |||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||
Allowance for loan losses | $ | 68,804 | $ | 66,566 | $ | 60,901 | $ | 58,508 | $ | 55,850 | ||||||||||||||
Non-performing assets | 14,290 | 13,654 | 9,347 | 8,805 | 8,367 | |||||||||||||||||||
Net charge-offs | 1,462 | 1,930 | 1,307 | 1,042 | 1,245 | |||||||||||||||||||
Allowance for loan losses to loans | 1.27 | % | 1.24 | % | 1.23 | % | 1.22 | % | 1.22 | % | ||||||||||||||
Non-performing assets to total assets | .20 | .19 | .14 | .14 | .14 | |||||||||||||||||||
Net charge-offs to average loans(3) | .11 | .15 | .11 | .09 | .11 | |||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||
Loans | $ | 5,402,860 | $ | 5,134,721 | $ | 4,865,886 | $ | 4,690,196 | $ | 4,505,494 | 20 | |||||||||||||
Investment securities | 1,153,208 | 1,059,125 | 1,029,981 | 1,039,707 | 1,038,683 | 11 | ||||||||||||||||||
Earning assets | 6,599,035 | 6,225,943 | 5,942,710 | 5,758,697 | 5,574,712 | 18 | ||||||||||||||||||
Total assets | 7,092,710 | 6,669,950 | 6,350,205 | 6,159,152 | 5,960,801 | 19 | ||||||||||||||||||
Deposits | 5,764,426 | 5,517,696 | 5,085,168 | 4,842,389 | 4,613,810 | 25 | ||||||||||||||||||
Shareholders’ equity | 624,100 | 547,419 | 510,791 | 489,821 | 478,960 | 30 | ||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||
Basic | 43,000 | 41,096 | 40,223 | 40,156 | 40,088 | |||||||||||||||||||
Diluted | 43,912 | 42,311 | 41,460 | 41,328 | 41,190 | |||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||
Loans | $ | 5,402,198 | $ | 5,376,538 | $ | 4,965,365 | $ | 4,810,277 | $ | 4,584,155 | 18 | |||||||||||||
Investment securities | 1,150,424 | 1,107,153 | 980,273 | 974,524 | 983,846 | 17 | ||||||||||||||||||
Earning assets | 6,640,564 | 6,565,730 | 6,012,987 | 5,862,614 | 5,633,381 | 18 | ||||||||||||||||||
Total assets | 7,186,602 | 7,101,249 | 6,455,290 | 6,331,136 | 6,070,596 | 18 | ||||||||||||||||||
Deposits | 5,841,687 | 5,772,886 | 5,309,219 | 4,976,650 | 4,748,438 | 23 | ||||||||||||||||||
Shareholders’ equity | 638,456 | 616,767 | 526,734 | 496,297 | 485,414 | 32 | ||||||||||||||||||
Common shares outstanding | 43,038 | 42,891 | 40,269 | 40,179 | 40,119 |
(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)
For the Three Months Ended March 31,
Consolidated Statement of Income(unaudited)
For the Three Months Ended March 31,
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands, except per share data) | 2007 | 2006 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 114,073 | $ | 86,606 | ||||
Investment securities: | ||||||||
Taxable | 13,968 | 11,318 | ||||||
Tax exempt | 447 | 514 | ||||||
Federal funds sold and deposits in banks | 58 | 158 | ||||||
Total interest revenue | 128,546 | 98,596 | ||||||
Interest expense: | ||||||||
Deposits: | ||||||||
NOW | 10,627 | 5,987 | ||||||
Money market | 2,540 | 1,200 | ||||||
Savings | 309 | 228 | ||||||
Time | 41,625 | 25,386 | ||||||
Total deposit interest expense | 55,101 | 32,801 | ||||||
Federal funds purchased, repurchase agreements, & other short-term borrowings | 1,817 | 1,482 | ||||||
Federal Home Loan Bank advances | 4,801 | 6,629 | ||||||
Long-term debt | 2,204 | 2,153 | ||||||
Total interest expense | 63,923 | 43,065 | ||||||
Net interest revenue | 64,623 | 55,531 | ||||||
Provision for loan losses | 3,700 | 3,500 | ||||||
Net interest revenue after provision for loan losses | 60,923 | 52,031 | ||||||
Fee revenue: | ||||||||
Service charges and fees | 7,253 | 6,353 | ||||||
Mortgage loan and other related fees | 2,223 | 1,513 | ||||||
Consulting fees | 1,747 | 1,584 | ||||||
Brokerage fees | 944 | 850 | ||||||
Securities gains (losses), net | 207 | (3 | ) | |||||
Other | 2,008 | 1,461 | ||||||
Total fee revenue | 14,382 | 11,758 | ||||||
Total revenue | 75,305 | 63,789 | ||||||
Operating expenses: | ||||||||
Salaries and employee benefits | 28,317 | 23,884 | ||||||
Communications and equipment | 3,812 | 3,376 | ||||||
Occupancy | 3,191 | 2,932 | ||||||
Advertising and public relations | 2,016 | 1,888 | ||||||
Postage, printing and supplies | 1,660 | 1,516 | ||||||
Professional fees | 1,479 | 1,161 | ||||||
Amortization of intangibles | 564 | 503 | ||||||
Other | 3,802 | 3,203 | ||||||
Total operating expenses | 44,841 | 38,463 | ||||||
Income before income taxes | 30,464 | 25,326 | ||||||
Income taxes | 11,119 | 9,287 | ||||||
Net income | $ | 19,345 | $ | 16,039 | ||||
Net income available to common shareholders | $ | 19,341 | $ | 16,034 | ||||
Earnings per common share: | ||||||||
Basic | $ | .45 | $ | .40 | ||||
Diluted | .44 | .39 | ||||||
Dividends per common share | .09 | .08 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 43,000 | 40,088 | ||||||
Diluted | 43,912 | 41,190 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
For the period ended
Consolidated Balance Sheet
For the period ended
March 31, | December 31, | March 31, | ||||||||||
(in thousands, except share and per share data) | 2007 | 2006 | 2006 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 159,543 | $ | 158,348 | $ | 150,378 | ||||||
Interest-bearing deposits in banks | 22,644 | 12,936 | 12,259 | |||||||||
Cash and cash equivalents | 182,187 | 171,284 | 162,637 | |||||||||
Securities available for sale | 1,150,424 | 1,107,153 | 983,846 | |||||||||
Mortgage loans held for sale | 31,633 | 35,325 | 18,455 | |||||||||
Loans, net of unearned income | 5,402,198 | 5,376,538 | 4,584,155 | |||||||||
Less allowance for loan losses | 68,804 | 66,566 | 55,850 | |||||||||
Loans, net | 5,333,394 | 5,309,972 | 4,528,305 | |||||||||
Premises and equipment, net | 150,332 | 139,716 | 120,021 | |||||||||
Accrued interest receivable | 60,677 | 58,291 | 41,895 | |||||||||
Goodwill and other intangible assets | 166,073 | 167,058 | 118,149 | |||||||||
Other assets | 111,882 | 112,450 | 97,288 | |||||||||
Total assets | $ | 7,186,602 | $ | 7,101,249 | $ | 6,070,596 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 675,969 | $ | 659,892 | $ | 653,624 | ||||||
NOW | 1,406,287 | 1,307,654 | 1,106,106 | |||||||||
Money market | 277,184 | 255,862 | 171,328 | |||||||||
Savings | 176,891 | 175,631 | 176,205 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,619,865 | 1,650,906 | 1,308,698 | |||||||||
Greater than $100,000 | 1,366,360 | 1,397,245 | 1,029,464 | |||||||||
Brokered | 319,131 | 325,696 | 303,013 | |||||||||
Total deposits | 5,841,687 | 5,772,886 | 4,748,438 | |||||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 77,367 | 65,884 | 167,369 | |||||||||
Federal Home Loan Bank advances | 464,072 | 489,084 | 510,602 | |||||||||
Long-term debt | 113,151 | 113,151 | 111,869 | |||||||||
Accrued expenses and other liabilities | 51,869 | 43,477 | 46,904 | |||||||||
Total liabilities | 6,548,146 | 6,484,482 | 5,585,182 | |||||||||
Shareholders’ equity: | ||||||||||||
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200, 32,200 and 32,200 shares issued and outstanding | 322 | 322 | 322 | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; 43,037,840, 42,890,863 and 40,119,288 shares issued and outstanding | 43,038 | 42,891 | 40,119 | |||||||||
Common stock issuable; 35,154, 29,821 and 16,549 shares | 1,043 | 862 | 451 | |||||||||
Capital surplus | 273,575 | 270,383 | 195,382 | |||||||||
Retained earnings | 321,721 | 306,261 | 263,384 | |||||||||
Accumulated other comprehensive loss | (1,243 | ) | (3,952 | ) | (14,244 | ) | ||||||
Total shareholders’ equity | 638,456 | 616,767 | 485,414 | |||||||||
Total liabilities and shareholders’ equity | $ | 7,186,602 | $ | 7,101,249 | $ | 6,070,596 | ||||||
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,
2007 | 2006 | |||||||||||||||||||||||
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) | $ | 5,402,860 | $ | 113,868 | 8.55 | % | $ | 4,505,494 | $ | 86,495 | 7.79 | % | ||||||||||||
Taxable securities(3) | 1,109,847 | 13,968 | 5.03 | 989,683 | 11,318 | 4.57 | ||||||||||||||||||
Tax-exempt securities(1) (3) | 43,361 | 735 | 6.78 | 49,000 | 846 | 6.90 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 42,967 | 457 | 4.26 | 30,535 | 379 | 4.96 | ||||||||||||||||||
Total interest-earning assets | 6,599,035 | 129,028 | 7.92 | 5,574,712 | 99,038 | 7.19 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (68,187 | ) | (54,825 | ) | ||||||||||||||||||||
Cash and due from banks | 120,637 | 122,486 | ||||||||||||||||||||||
Premises and equipment | 146,832 | 115,590 | ||||||||||||||||||||||
Other assets(3) | 294,393 | 202,838 | ||||||||||||||||||||||
Total assets | $ | 7,092,710 | $ | 5,960,801 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW accounts | $ | 1,322,818 | $ | 10,627 | 3.26 | $ | 1,082,342 | $ | 5,987 | 2.24 | ||||||||||||||
Money Market accounts | 261,753 | 2,540 | 3.94 | 163,404 | 1,200 | 2.98 | ||||||||||||||||||
Savings deposits | 175,275 | 309 | .71 | 175,796 | 228 | .53 | ||||||||||||||||||
Time deposits less than $100,000 | 1,641,507 | 19,796 | 4.89 | 1,270,078 | 12,035 | 3.84 | ||||||||||||||||||
Time deposits greater than $100,000 | 1,385,401 | 17,916 | 5.24 | 979,665 | 10,409 | 4.31 | ||||||||||||||||||
Brokered deposits | 334,753 | 3,913 | 4.74 | 315,090 | 2,942 | 3.79 | ||||||||||||||||||
Total interest-bearing deposits | 5,121,507 | 55,101 | 4.36 | 3,986,375 | 32,801 | 3.34 | ||||||||||||||||||
Federal funds purchased & other borrowings | 139,256 | 1,817 | 5.29 | 128,602 | 1,482 | 4.67 | ||||||||||||||||||
Federal Home Loan Bank advances | 395,746 | 4,801 | 4.92 | 586,722 | 6,629 | 4.58 | ||||||||||||||||||
Long-term debt | 113,234 | 2,204 | 7.89 | 111,869 | 2,153 | 7.81 | ||||||||||||||||||
Total borrowed funds | 648,236 | 8,822 | 5.52 | 827,193 | 10,264 | 5.03 | ||||||||||||||||||
Total interest-bearing liabilities | 5,769,743 | 63,923 | 4.49 | 4,813,568 | 43,065 | 3.63 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 642,919 | 627,436 | ||||||||||||||||||||||
Other liabilities | 55,948 | 40,837 | ||||||||||||||||||||||
Total liabilities | 6,468,610 | 5,481,841 | ||||||||||||||||||||||
Shareholders’ equity | 624,100 | 478,960 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,092,710 | $ | 5,960,801 | ||||||||||||||||||||
Net interest revenue | $ | 65,105 | $ | 55,973 | ||||||||||||||||||||
Net interest-rate spread | 3.43 | % | 3.56 | % | ||||||||||||||||||||
Net interest margin(4) | 3.99 | % | 4.06 | % | ||||||||||||||||||||
(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 income tax rate and the federal tax adjusted state income 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 $10.0 million and $14.2 million in 2007 and 2006, 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. |