Exhibit 99.1
For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
EARNINGS OF $9.9 MILLION FOR FOURTH QUARTER 2011
· | Net income of $9.9 million, or 12 cents per share |
· | Loans stable with prior quarter, first time since March 2008 |
· | Core transaction deposits up $266 million, or 10 percent, for the year |
· | Nonperforming assets decline to $160 million, or 2.3 percent of assets |
· | New director appointed |
BLAIRSVILLE, GA – January 25, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $9.9 million, or 12 cents per share, for the fourth quarter of 2011. The fourth quarter results included, among other items, a higher level of foreclosure costs reflecting an increase in sales activities, as well as the positive impact of a $3.5 million reversal of a previously established reserve related to the settlement of a state tax dispute.
The 2011 net loss of $227 million primarily reflects significant credit costs in the first quarter incurred in connection with United’s problem asset disposition plan. The plan was executed in connection with raising $380 million of new capital in March 2011.
“United is moving forward with a sound balance sheet and strong capital structure. This is beginning to be demonstrated in our financial results including the fourth quarter profit,” stated Jimmy Tallent, United’s president and chief executive officer. “Our core pre-tax, pre-credit earnings, excluding one-time items, were above the third quarter. We continued to dispose of problem assets aggressively. We believe the remaining credit challenges are manageable and while we are not invulnerable to the still-fragile economy, our expectation is continued profitability during 2012.”
Total loans were $4.1 billion at quarter-end, equal to third quarter and down $494 million from a year earlier. “We have worked diligently to reverse the trend of declining loan balances, and achieved great progress toward that goal during 2011,” stated Tallent. “The $494 million decline included $410 million in the first quarter, primarily from the bulk loan sale and de-risking of our balance sheet, which were strategic components of our problem asset disposition plan. We are now in a position to prudently rebuild our loan portfolio and grow net interest revenue and earnings. We are encouraged to have $182 million of new loan commitments with $147 million funded in the fourth quarter and $542 million of new loan commitments with $392 million funded in the full year. The majority were commercial loans.”
The fourth quarter provision for loan losses was $14 million, down from an operating provision of $47.7 million a year ago which excluded a recovery of $11.7 million related to a 2007 fraud-related loan charge-off. The third quarter 2011 provision for loan losses was $36 million, including $25 million specifically related to United’s largest loan relationship.
Net charge-offs for the fourth quarter were $45.6 million, compared to $17.5 million for the third quarter and down from $47.7 million in operating net charge-offs a year ago. Fourth quarter 2011 net charge-offs included the $25 million charge-off related to a large loan relationship that was reserved for in the third quarter of 2011. Nonperforming assets decreased $28 million during the fourth quarter to $160 million at December 31, 2011, primarily related to this $25 million partial charge-off.
“Nonperforming assets have been written down to levels that should allow for continued liquidation without significant losses,” Tallent said. “Total nonperforming assets will continue to be impacted by our ability to liquidate foreclosed properties, and also could be affected by uneven levels of nonperforming loan inflows and charge-offs. Looking ahead, we expect our overall credit trends to improve during 2012, although not necessarily on a straight line.”
Taxable equivalent net interest revenue of $59.1 million declined slightly from the third quarter. Compared with the fourth quarter of 2010, net interest revenue declined $1.1 million, primarily due to a decrease in interest revenue resulting from a $593 million reduction in average loan balances. The effect of this reduction was significantly offset by lower interest expense due to reductions in deposit rates. Net interest margin was 3.51 percent for the fourth quarter of 2011, down seven basis points from a year ago and four basis points from the third quarter.
“Loan and deposit growth are key for increasing core earnings,” Tallent commented. “The weak economy has created a highly competitive environment for good, quality loans and recognizing this, we are gaining traction with the addition of seasoned lenders in key markets. We have had tremendous success attracting core transaction deposits – increasing the balance by $266 million in 2011, or 10 percent, from a year ago and we remain sharply focused on growing core deposits. This focus continues is 2012.”
Fee revenue was $12.7 million in the fourth quarter of 2011, compared to $11.5 million in the third quarter and $12.4 million a year ago. Service charges and fees were $7.2 million, up $209,000 from a year ago, due primarily to a $434,000 increase in ATM and debit card revenue, which totaled $3.0 million. However, these fees were partially offset by a $295,000 decline in overdraft fees resulting from lower volumes. Mortgage fees of $1.8 million were up $677,000 from the third quarter and down $43,000 from a year ago. The comparisons to prior periods are significantly influenced by the interest rate environment and refinancing activities.
Other fee revenue of $2.8 million reflected an increase of $828,000 from the third quarter of 2011, and an increase of $51,000 from the fourth quarter of 2010. The increase from the third quarter was primarily due to the recognition of a $728,000 gain from the sale of low-income housing tax credits, while the fourth quarter of 2010 included a similar gain. Also included in each period was the recognition of deferred gains relating to the ineffectiveness of terminated cash flow hedges on certain prime-based loans. Hedge ineffectiveness gains recognized in the fourth quarter were $313,000, compared with $575,000 in the third quarter and $400,000 a year ago.
Excluding foreclosed property costs, fourth quarter 2011 operating expenses were $41.8 million, down from the third quarter of 2011 and fourth quarter of 2010 by $1.9 million and $2.5 million, respectively. The decrease from the third quarter was mostly in salaries and employee benefits. The decrease from a year ago was mostly due to lower professional fees, a lower FDIC assessment and lower salaries and employee benefits.
Foreclosed property costs for the fourth quarter of 2011 were $9.3 million as compared to $2.8 million last quarter and $20.6 million a year ago. The fourth quarter of 2011 included $2.4 million for maintenance of foreclosed properties and $6.9 million in net losses and write-downs on properties. For the third quarter of 2011, foreclosed property costs included $1.8 million in maintenance and $968,000 in net losses and write-downs. Fourth quarter 2010 costs included $4.8 million in maintenance and $15.8 million in net write-downs and losses.
The income tax benefit for the fourth quarter included the release of $3.5 million from a previously established reserve for uncertain tax positions upon the settlement of a state tax dispute. United’s third quarter tax benefit also included the release of approximately $1.1 million in reserves for uncertain tax positions relating to state tax returns that have expired. Excluding these items, the tax provision for both periods was minimal due to the full deferred tax asset valuation allowance.
“Earlier this month we announced we would record a full valuation allowance for our net deferred tax asset, and that we would restate our previously filed financial reports going back to the fourth quarter of 2010,” Tallent said. “This restatement results from an ongoing comment process with the SEC which we believe has now been resolved. While the comment process outcome was disappointing, it had no effect on our positive momentum and outlook.”
Tallent continued, “The full valuation allowance results from a difference in judgment regarding the weighting of evidence supporting our deferred tax asset. We are now placing more weight on the objective negative evidence represented by our recent cumulative losses rather than the more subjective positive evidence represented by our future earnings forecasts. Once we have achieved sustained profitability and improved credit performance such that the weighting of the evidence shifts, we would expect to be able to reverse the valuation allowance. At December 31, 2011, the $268 million valuation allowance reduced Tangible Book Value per share by $4.65 and Tangible Common Equity-to-Assets ratio by approximately 2.83 percent.
As of December 31, 2011, capital ratios for United were as follows: Tier 1 Risk-Based of 13.6 percent; Tier 1 Leverage of 8.8 percent; and Total Risk-Based of 15.4 percent. The Tier 1 Common Risk-Based ratio was 8.2 and the Tangible Common Equity-to-Assets ratio was 5.4 percent.
United also reported today that Clifford V. Brokaw, a managing director of Corsair Capital LLC, United’s largest shareholder, has been named to its board of directors, subject to regulatory approval, and to its wholly owned subsidiary, United Community Bank. Brokaw succeeds Corsair Capital’s previous board appointee, Peter Raskind, who is expected to be named a director of one of the nation’s largest banks. Under regulatory requirements he is unable to serve as a board member simultaneously on more than one large bank holding company or bank board. In addition to Corsair, Brokaw has been a managing director of the financial institutions group at Goldman Sachs & Co, worked in the mergers and acquisitions group of J.P. Morgan, and is a director of Torus Insurance Holdings.
“We are delighted to have Cliff join our board,” Tallent said. “He has already been a valuable source for guidance and direction as a board observer over the past nine months, and we look forward to his counsel in an official capacity going forward.”
Conference Call
United will hold a conference call today, Thursday, January 26, 2012, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 41622107. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of the United’s website at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.0 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United’s common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United’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 United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2010 Annual Report on Form 10-Kand Quarterly Reports on Form 10-Q for the periods ended June 30, 2011 and September 30, 2011 under the sections entitled “Forward-Looking Statements” and “Risk Factors” and in United’s Current Reports on Form 8-K. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
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UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
Selected Financial Information |
Fourth | ||||||||||||||||||||||||||||||||||||
2011 | 2010 | Quarter | For the Twelve | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | 2011-2010 | Months Ended | 2011-2010 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2011 | 2010 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 75,965 | $ | 81,215 | $ | 299,344 | $ | 343,123 | ||||||||||||||||||||||
Interest expense | 12,855 | 15,262 | 17,985 | 19,573 | 21,083 | 65,675 | 100,071 | |||||||||||||||||||||||||||||
Net interest revenue | 59,050 | 59,281 | 58,946 | 56,392 | 60,132 | (2 | ) % | 233,669 | 243,052 | (4 | ) % | |||||||||||||||||||||||||
Operating provision for loan losses (1) | 14,000 | 36,000 | 11,000 | 190,000 | 47,750 | 251,000 | 234,750 | |||||||||||||||||||||||||||||
Fee revenue (2) | 12,667 | 11,498 | 13,905 | 11,838 | 12,442 | 2 | 49,908 | 48,548 | 3 | |||||||||||||||||||||||||||
Total operating revenue (1)(2) | 57,717 | 34,779 | 61,851 | (121,770 | ) | 24,824 | 32,577 | 56,850 | ||||||||||||||||||||||||||||
Operating expenses (3) | 51,080 | 46,520 | 48,728 | 115,271 | 64,918 | (21 | ) | 261,599 | 242,952 | 8 | ||||||||||||||||||||||||||
Loss on sale of nonperforming assets | - | - | - | - | - | - | 45,349 | |||||||||||||||||||||||||||||
Operating income (loss) from continuing operations before income taxes | 6,637 | (11,741 | ) | 13,123 | (237,041 | ) | (40,094 | ) | (229,022 | ) | (231,451 | ) | ||||||||||||||||||||||||
Operating income tax expense (benefit) | (3,264 | ) | (402 | ) | 1,095 | 295 | 144,760 | (2,276 | ) | 73,218 | ||||||||||||||||||||||||||
Net operating income (loss) from continuing operations (1)(2)(3) | 9,901 | (11,339 | ) | 12,028 | (237,336 | ) | (184,854 | ) | (226,746 | ) | (304,669 | ) | ||||||||||||||||||||||||
Noncash goodwill impairment charges | - | - | - | - | - | - | (210,590 | ) | ||||||||||||||||||||||||||||
Partial reversal of fraud loss provision | - | - | - | - | 11,750 | - | 11,750 | |||||||||||||||||||||||||||||
Loss from discontinued operations | - | - | - | - | - | - | (101 | ) | ||||||||||||||||||||||||||||
Gain from sale of subsidiary | - | - | - | - | - | - | 1,266 | |||||||||||||||||||||||||||||
Net income (loss) | 9,901 | (11,339 | ) | 12,028 | (237,336 | ) | (173,104 | ) | (226,746 | ) | (502,344 | ) | ||||||||||||||||||||||||
Preferred dividends and discount accretion | 3,025 | 3,019 | 3,016 | 2,778 | 2,586 | 11,838 | 10,316 | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 6,876 | $ | (14,358 | ) | $ | 9,012 | $ | (240,114 | ) | $ | (175,690 | ) | $ | (238,584 | ) | $ | (512,660 | ) | |||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted operating income (loss) from continuing operations (1)(2)(3) | $ | .12 | $ | (.25 | ) | $ | .16 | $ | (13.00 | ) | $ | (9.87 | ) | $ | (5.97 | ) | $ | (16.64 | ) | |||||||||||||||||
Diluted income (loss) from continuing operations | .12 | (.25 | ) | .16 | (13.00 | ) | (9.25 | ) | (5.97 | ) | (27.15 | ) | ||||||||||||||||||||||||
Diluted income (loss) | .12 | (.25 | ) | .16 | (13.00 | ) | (9.25 | ) | (5.97 | ) | (27.09 | ) | ||||||||||||||||||||||||
Book value | 6.62 | 6.77 | 7.11 | 2.20 | 15.40 | (57 | ) | 6.62 | 15.40 | (57 | ) | |||||||||||||||||||||||||
Tangible book value (5) | 6.47 | 6.61 | 6.94 | 1.69 | 14.80 | (56 | ) | 6.47 | 14.80 | (56 | ) | |||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on equity (4)(6) | 7.40 | % | (15.06 | ) % | 42.60 | % | (526.54 | ) % | (196.10 | )% | (93.57 | ) % | (85.08 | )% | ||||||||||||||||||||||
Return on assets (6) | .56 | (.64 | ) | .66 | (13.04 | ) | (9.47 | ) | (3.15 | ) | (6.61 | ) | ||||||||||||||||||||||||
Net interest margin (6) | 3.51 | 3.55 | 3.41 | 3.30 | 3.58 | 3.44 | 3.56 | |||||||||||||||||||||||||||||
Operating efficiency ratio from continuing operations (2)(3) | 71.23 | 65.73 | 66.88 | 169.08 | 89.45 | 92.27 | 98.98 | |||||||||||||||||||||||||||||
Equity to assets | 8.28 | 8.55 | 8.06 | 6.15 | 7.80 | 7.75 | 10.77 | |||||||||||||||||||||||||||||
Tangible equity to assets (5) | 8.16 | 8.42 | 7.93 | 6.01 | 7.64 | 7.62 | 8.88 | |||||||||||||||||||||||||||||
Tangible common equity to assets (5) | 5.38 | 5.65 | 1.37 | 2.70 | 5.22 | 3.74 | 6.52 | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (5) | 8.22 | 8.52 | 8.69 | .75 | 5.64 | 8.22 | 5.64 | |||||||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||||||
Non-performing loans | $ | 127,479 | $ | 144,484 | $ | 71,065 | $ | 83,769 | $ | 179,094 | $ | 127,479 | $ | 179,094 | ||||||||||||||||||||||
Foreclosed properties | 32,859 | 44,263 | 47,584 | 54,378 | 142,208 | 32,859 | 142,208 | |||||||||||||||||||||||||||||
Total non-performing assets (NPAs) | 160,338 | 188,747 | 118,649 | 138,147 | 321,302 | 160,338 | 321,302 | |||||||||||||||||||||||||||||
Allowance for loan losses | 114,468 | 146,092 | 127,638 | 133,121 | 174,695 | 114,468 | 174,695 | |||||||||||||||||||||||||||||
Operating net charge-offs (1) | 45,624 | 17,546 | 16,483 | 231,574 | 47,668 | 311,227 | 215,657 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 2.79 | % | 3.55 | % | 3.07 | % | 3.17 | % | 3.79 | % | 2.79 | % | 3.79 | % | ||||||||||||||||||||||
Operating net charge-offs to average loans (1)(6) | 4.39 | 1.68 | 1.58 | 20.71 | 4.03 | 7.33 | 4.42 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 3.87 | 4.54 | 2.82 | 3.25 | 6.77 | 3.87 | 6.77 | |||||||||||||||||||||||||||||
NPAs to total assets | 2.30 | 2.74 | 1.66 | 1.79 | 4.42 | 2.30 | 4.42 | |||||||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,175 | $ | 4,194 | $ | 4,266 | $ | 4,599 | $ | 4,768 | (12 | ) | $ | 4,307 | $ | 4,961 | (13 | ) | ||||||||||||||||||
Investment securities | 2,141 | 2,150 | 2,074 | 1,625 | 1,354 | 58 | 1,999 | 1,453 | 38 | |||||||||||||||||||||||||||
Earning assets | 6,688 | 6,630 | 6,924 | 6,902 | 6,680 | - | 6,785 | 6,822 | (1 | ) | ||||||||||||||||||||||||||
Total assets | 7,019 | 7,000 | 7,363 | 7,379 | 7,254 | (3 | ) | 7,189 | 7,605 | (5 | ) | |||||||||||||||||||||||||
Deposits | 6,115 | 6,061 | 6,372 | 6,560 | 6,294 | (3 | ) | 6,275 | 6,373 | (2 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 581 | 598 | 594 | 454 | 566 | 3 | 557 | 819 | (32 | ) | ||||||||||||||||||||||||||
Common shares - basic (thousands) | 57,646 | 57,599 | 25,427 | 18,466 | 18,984 | 39,943 | 18,925 | |||||||||||||||||||||||||||||
Common shares - diluted (thousands) | 57,646 | 57,599 | 57,543 | 18,466 | 18,984 | 39,943 | 18,925 | |||||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans * | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | $ | 4,604 | (11 | ) | $ | 4,110 | $ | 4,604 | (11 | ) | ||||||||||||||||||
Investment securities | 2,120 | 2,123 | 2,188 | 1,884 | 1,490 | 42 | 2,120 | 1,490 | 42 | |||||||||||||||||||||||||||
Total assets | 6,983 | 6,894 | 7,152 | 7,709 | 7,276 | (4 | ) | 6,983 | 7,276 | (4 | ) | |||||||||||||||||||||||||
Deposits | 6,098 | 6,005 | 6,183 | 6,598 | 6,469 | (6 | ) | 6,098 | 6,469 | (6 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 575 | 583 | 603 | 586 | 469 | 23 | 575 | 469 | 23 | |||||||||||||||||||||||||||
Common shares outstanding (thousands) | 57,561 | 57,510 | 57,469 | 20,903 | 18,937 | 57,561 | 18,937 |
(1) Excludes the partial reversal of a previously established provision for fraud-related loan losses of $11.8 million in the fourth quarter of 2010. Operating charge-offs also exclude the $11.8 million related partial recovery of the previously charged off amount. (2) Excludes revenue generated by discontinued operations in the first quarter of 2010. (3) Excludes the goodwill impairment charge of $211 million in the third quarter of 2010 and expenses relating to discontinued operations in the first quarter of 2010. (4) Net loss available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC. | |||||||||||
Selected Financial Information | |||||||||||
For the Years Ended December 31, |
(in thousands, except per share data; | ||||||||||||||||||||
taxable equivalent) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||
Net interest revenue | $ | 233,669 | $ | 243,052 | $ | 245,227 | $ | 238,704 | $ | 274,483 | ||||||||||
Operating provision for loan losses (1) | 251,000 | 234,750 | 310,000 | 184,000 | 37,600 | |||||||||||||||
Operating fee revenue (2) | 49,908 | 48,548 | 50,964 | 46,081 | 53,701 | |||||||||||||||
Total operating revenue (1)(2) | 32,577 | 56,850 | (13,809 | ) | 100,785 | 290,584 | ||||||||||||||
Operating expenses (3) | 261,599 | 242,952 | 217,050 | 200,335 | 181,730 | |||||||||||||||
Loss on sale of nonperforming assets | - | 45,349 | - | - | - | |||||||||||||||
Operating (loss) income from continuing operations before taxes | (229,022 | ) | (231,451 | ) | (230,859 | ) | (99,550 | ) | 108,854 | |||||||||||
Operating income taxes | (2,276 | ) | 73,218 | (91,754 | ) | (35,651 | ) | 40,266 | ||||||||||||
Net operating (loss) income from continuing operations | (226,746 | ) | (304,669 | ) | (139,105 | ) | (63,899 | ) | 68,588 | |||||||||||
Gain from acquisition, net of tax | - | - | 7,062 | - | - | |||||||||||||||
Noncash goodwill impairment charges | - | (210,590 | ) | (95,000 | ) | - | - | |||||||||||||
Severance cost, net of tax benefit | - | - | (1,797 | ) | - | - | ||||||||||||||
Fraud loss provision and subsequent recovery, net of tax benefit | - | 11,750 | - | - | (10,998 | ) | ||||||||||||||
Net (loss) income from discontinued operations | - | (101 | ) | 513 | 449 | 403 | ||||||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | - | 1,266 | - | - | - | |||||||||||||||
Net (loss) income | (226,746 | ) | (502,344 | ) | (228,327 | ) | (63,450 | ) | 57,993 | |||||||||||
Preferred dividends and discount accretion | 11,838 | 10,316 | 10,242 | 724 | 18 | |||||||||||||||
Net (loss) income available to common shareholders | $ | (238,584 | ) | $ | (512,660 | ) | $ | (238,569 | ) | $ | (64,174 | ) | $ | 57,975 | ||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Per common share: | ||||||||||||||||||||
Diluted operating (loss) earnings from continuing operations (1)(2)(3) | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | $ | (6.82 | ) | $ | 7.36 | ||||||
Diluted (loss) earnings from continuing operations | (5.97 | ) | (27.15 | ) | (19.80 | ) | (6.82 | ) | 6.18 | |||||||||||
Diluted (loss) earnings | (5.97 | ) | (27.09 | ) | (19.76 | ) | (6.77 | ) | 6.22 | |||||||||||
Cash dividends declared (rounded) | - | - | - | .87 | 1.73 | |||||||||||||||
Stock dividends declared (6) | - | - | 3 for 130 | 2 for 130 | - | |||||||||||||||
Book value | 6.62 | 15.40 | 41.78 | 84.75 | 88.52 | |||||||||||||||
Tangible book value (5) | 6.47 | 14.80 | 30.09 | 51.93 | 54.62 | |||||||||||||||
Key performance ratios: | ||||||||||||||||||||
Return on equity (4) | (93.57 | ) % | (85.08 | ) % | (34.40 | ) % | (7.82 | ) % | 7.79 | % | ||||||||||
Return on assets | (3.15 | ) | (6.61 | ) | (2.76 | ) | (.76 | ) | .75 | |||||||||||
Net interest margin | 3.44 | 3.56 | 3.29 | 3.18 | 3.88 | |||||||||||||||
Operating efficiency ratio from continuing operations (2)(3) | 92.27 | 98.98 | 73.97 | 70.00 | 55.53 | |||||||||||||||
Equity to assets | 7.75 | 10.77 | 11.12 | 10.22 | 9.61 | |||||||||||||||
Tangible equity to assets (5) | 7.62 | 8.88 | 8.33 | 6.67 | 6.63 | |||||||||||||||
Tangible common equity to assets (5) | 3.74 | 6.52 | 6.15 | 6.57 | 6.63 | |||||||||||||||
Tangible common equity to risk-weighted assets (5) | 8.22 | 5.64 | 10.39 | 8.34 | 8.21 | |||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||
Non-performing loans | $ | 127,479 | $ | 179,094 | $ | 264,092 | $ | 190,723 | $ | 28,219 | ||||||||||
Foreclosed properties | 32,859 | 142,208 | 120,770 | 59,768 | 18,039 | |||||||||||||||
Total non-performing assets (NPAs) | 160,338 | 321,302 | 384,862 | 250,491 | 46,258 | |||||||||||||||
Allowance for loan losses | 114,468 | 174,695 | 155,602 | 122,271 | 89,423 | |||||||||||||||
Operating net charge-offs (1) | 311,227 | 215,657 | 276,669 | 151,152 | 21,834 | |||||||||||||||
Allowance for loan losses to loans | 2.79 | % | 3.79 | % | 3.02 | % | 2.14 | % | 1.51 | % | ||||||||||
Operating net charge-offs to average loans (1) | 7.33 | 4.42 | 5.03 | 2.57 | .38 | |||||||||||||||
NPAs to loans and foreclosed properties | 3.87 | 6.77 | 7.30 | 4.35 | .78 | |||||||||||||||
NPAs to total assets | 2.30 | 4.42 | 4.81 | 2.92 | .56 | |||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||
Loans | $ | 4,307 | $ | 4,961 | $ | 5,548 | $ | 5,891 | $ | 5,735 | ||||||||||
Investment securities | 1,999 | 1,453 | 1,656 | 1,489 | 1,278 | |||||||||||||||
Earning assets | 6,785 | 6,822 | 7,465 | 7,504 | 7,071 | |||||||||||||||
Total assets | 7,189 | 7,605 | 8,269 | 8,319 | 7,731 | |||||||||||||||
Deposits | 6,275 | 6,373 | 6,713 | 6,524 | 6,029 | |||||||||||||||
Shareholders’ equity | 557 | 819 | 920 | 850 | 743 | |||||||||||||||
Common shares - Basic (thousands) | 39,943 | 18,925 | 12,075 | 9,474 | 9,190 | |||||||||||||||
Common shares - Diluted (thousands) | 39,943 | 18,925 | 12,075 | 9,474 | 9,319 | |||||||||||||||
AT YEAR END ($ in millions) | ||||||||||||||||||||
Loans * | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | $ | 5,929 | ||||||||||
Investment securities | 2,120 | 1,490 | 1,530 | 1,617 | 1,357 | |||||||||||||||
Total assets | 6,983 | 7,276 | 8,000 | 8,592 | 8,207 | |||||||||||||||
Deposits | 6,098 | 6,469 | 6,628 | 7,004 | 6,076 | |||||||||||||||
Shareholders’ equity | 575 | 469 | 962 | 989 | 832 | |||||||||||||||
Common shares outstanding (thousands) | 57,561 | 18,937 | 18,809 | 9,602 | 9,381 |
(1) Excludes pre-tax provision for fraud-related loan losses and related charge-offs of $18 million, net of income tax benefit of $7 million in 2007 and subsequent recovery of $11.8 million in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes the goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net (loss) income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. (6) Number of new shares issued for shares currently held.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Operating Earnings to GAAP Earnings Reconciliation
Selected Financial Information
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | For the Twelve Months Ended | ||||||||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 75,965 | $ | 81,215 | $ | 299,344 | $ | 343,123 | $ | 404,961 | $ | 466,969 | $ | 550,917 | ||||||||||||||||||||
Taxable equivalent adjustment | (423 | ) | (420 | ) | (429 | ) | (435 | ) | (497 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | (1,881 | ) | ||||||||||||||||||||
Interest revenue (GAAP) | $ | 71,482 | $ | 74,123 | $ | 76,502 | $ | 75,530 | $ | 80,718 | $ | 297,637 | $ | 341,122 | $ | 402,829 | $ | 464,708 | $ | 549,036 | ||||||||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 59,050 | $ | 59,281 | $ | 58,946 | $ | 56,392 | $ | 60,132 | $ | 233,669 | $ | 243,052 | $ | 245,227 | $ | 238,704 | $ | 274,483 | ||||||||||||||||||||
Taxable equivalent adjustment | (423 | ) | (420 | ) | (429 | ) | (435 | ) | (497 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | (1,881 | ) | ||||||||||||||||||||
Net interest revenue (GAAP) | $ | 58,627 | $ | 58,861 | $ | 58,517 | $ | 55,957 | $ | 59,635 | $ | 231,962 | $ | 241,051 | $ | 243,095 | $ | 236,443 | $ | 272,602 | ||||||||||||||||||||
Provision for loan losses reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating provision for loan losses | $ | 14,000 | $ | 36,000 | $ | 11,000 | $ | 190,000 | $ | 47,750 | $ | 251,000 | $ | 234,750 | $ | 310,000 | $ | 184,000 | $ | 37,600 | ||||||||||||||||||||
Provision for special fraud-related loan loss and partial recovery | - | - | - | - | (11,750 | ) | - | (11,750 | ) | - | - | 18,000 | ||||||||||||||||||||||||||||
Provision for loan losses (GAAP) | $ | 14,000 | $ | 36,000 | $ | 11,000 | $ | 190,000 | $ | 36,000 | $ | 251,000 | $ | 223,000 | $ | 310,000 | $ | 184,000 | $ | 55,600 | ||||||||||||||||||||
Fee revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating fee revenue | $ | 12,667 | $ | 11,498 | $ | 13,905 | $ | 11,838 | $ | 12,442 | $ | 49,908 | $ | 48,548 | $ | 50,964 | $ | 46,081 | $ | 53,701 | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | 11,390 | - | - | ||||||||||||||||||||||||||||||
Fee revenue (GAAP) | $ | 12,667 | $ | 11,498 | $ | 13,905 | $ | 11,838 | $ | 12,442 | $ | 49,908 | $ | 48,548 | $ | 62,354 | $ | 46,081 | $ | 53,701 | ||||||||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | 57,717 | $ | 34,779 | $ | 61,851 | $ | (121,770 | ) | $ | 24,824 | $ | 32,577 | $ | 56,850 | $ | (13,809 | ) | $ | 100,785 | $ | 290,584 | ||||||||||||||||||
Taxable equivalent adjustment | (423 | ) | (420 | ) | (429 | ) | (435 | ) | (497 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | (1,881 | ) | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | 11,390 | - | - | ||||||||||||||||||||||||||||||
Provision for special fraud-related loan loss and partial recovery | - | - | - | - | 11,750 | - | 11,750 | - | - | (18,000 | ) | |||||||||||||||||||||||||||||
Total revenue (GAAP) | $ | 57,294 | $ | 34,359 | $ | 61,422 | $ | (122,205 | ) | $ | 36,077 | $ | 30,870 | $ | 66,599 | $ | (4,551 | ) | $ | 98,524 | $ | 270,703 | ||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating expense | $ | 51,080 | $ | 46,520 | $ | 48,728 | $ | 115,271 | $ | 64,918 | $ | 261,599 | $ | 288,301 | $ | 217,050 | $ | 200,335 | $ | 181,730 | ||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | 210,590 | 95,000 | - | - | ||||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | 2,898 | - | - | ||||||||||||||||||||||||||||||
Operating expense (GAAP) | $ | 51,080 | $ | 46,520 | $ | 48,728 | $ | 115,271 | $ | 64,918 | $ | 261,599 | $ | 498,891 | $ | 314,948 | $ | 200,335 | $ | 181,730 | ||||||||||||||||||||
Income (loss) from continuing operations before taxes reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) from continuing operations before taxes | $ | 6,637 | $ | (11,741 | ) | $ | 13,123 | $ | (237,041 | ) | $ | (40,094 | ) | $ | (229,022 | ) | $ | (231,451 | ) | $ | (230,859 | ) | $ | (99,550 | ) | $ | 108,854 | |||||||||||||
Taxable equivalent adjustment | (423 | ) | (420 | ) | (429 | ) | (435 | ) | (497 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | (1,881 | ) | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | 11,390 | - | - | ||||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | (210,590 | ) | (95,000 | ) | - | - | ||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | (2,898 | ) | - | - | |||||||||||||||||||||||||||||
Provision for special fraud-related loan loss and partial recovery | - | - | - | - | 11,750 | - | 11,750 | - | - | (18,000 | ) | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before taxes (GAAP) | $ | 6,214 | $ | (12,161 | ) | $ | 12,694 | $ | (237,476 | ) | $ | (28,841 | ) | $ | (230,729 | ) | $ | (432,292 | ) | $ | (319,499 | ) | $ | (101,811 | ) | $ | 88,973 | |||||||||||||
Income tax (benefit) expense reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating income tax (benefit) expense | $ | (3,264 | ) | $ | (402 | ) | $ | 1,095 | $ | 295 | $ | 144,760 | $ | (2,276 | ) | $ | 73,218 | $ | (91,754 | ) | $ | (35,651 | ) | $ | 40,266 | |||||||||||||||
Taxable equivalent adjustment | (423 | ) | (420 | ) | (429 | ) | (435 | ) | (497 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | (2,261 | ) | (1,881 | ) | ||||||||||||||||||||
Gain from acquisition, tax expense | - | - | - | - | - | - | - | 4,328 | - | - | ||||||||||||||||||||||||||||||
Severance costs, tax benefit | - | - | - | - | - | - | - | (1,101 | ) | - | - | |||||||||||||||||||||||||||||
Provision for special fraud-related loan loss tax benefit | - | - | - | - | - | - | - | - | - | (7,002 | ) | |||||||||||||||||||||||||||||
Income tax (benefit) expense (GAAP) | $ | (3,687 | ) | $ | (822 | ) | $ | 666 | $ | (140 | ) | $ | 144,263 | $ | (3,983 | ) | $ | 71,217 | $ | (90,659 | ) | $ | (37,912 | ) | $ | 31,383 | ||||||||||||||
Diluted earnings (loss) from continuing operations per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Diluted operating earnings (loss) from continuing operations per common share | $ | .12 | $ | (.25 | ) | $ | .16 | $ | (13.00 | ) | $ | (9.87 | ) | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | $ | (6.82 | ) | $ | 7.36 | |||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | .58 | - | - | ||||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | (11.13 | ) | (7.86 | ) | - | - | ||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | (.15 | ) | - | - | |||||||||||||||||||||||||||||
Provision for special fraud-related loan loss and partial recovery | - | - | - | - | .62 | - | .62 | - | - | (1.18 | ) | |||||||||||||||||||||||||||||
Diluted earnings (loss) from continuing operations per common share (GAAP) | $ | .12 | $ | (.25 | ) | $ | .16 | $ | (13.00 | ) | $ | (9.25 | ) | $ | (5.97 | ) | $ | (27.15 | ) | $ | (19.80 | ) | $ | (6.82 | ) | $ | 6.18 | |||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible book value per common share | $ | 6.47 | $ | 6.61 | $ | 6.94 | $ | 1.69 | $ | 14.80 | $ | 6.47 | $ | 14.80 | $ | 30.09 | $ | 51.93 | $ | 54.62 | ||||||||||||||||||||
Effect of goodwill and other intangibles | .15 | .16 | .17 | .51 | .60 | .15 | .60 | 11.69 | 32.82 | 33.90 | ||||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 6.62 | $ | 6.77 | $ | 7.11 | $ | 2.20 | $ | 15.40 | $ | 6.62 | $ | 15.40 | $ | 41.78 | $ | 84.75 | $ | 88.52 | ||||||||||||||||||||
Efficiency ratio from continuing operations reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio from continuing operations | 71.23 | % | 65.73 | % | 66.88 | % | 169.08 | % | 89.45 | % | 92.27 | % | 98.98 | % | 73.97 | % | 70.00 | % | 55.53 | % | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | (2.77 | ) | - | - | |||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | 72.29 | 31.17 | - | - | ||||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | .95 | - | - | ||||||||||||||||||||||||||||||
Efficiency ratio from continuing operations (GAAP) | 71.23 | % | 65.73 | % | 66.88 | % | 169.08 | % | 89.45 | % | 92.27 | % | 171.27 | % | 103.32 | % | 70.00 | % | 55.53 | % | ||||||||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible common equity to assets | 5.38 | % | 5.65 | % | 1.37 | % | 2.70 | % | 5.22 | % | 3.74 | % | 6.52 | % | 6.15 | % | 6.57 | % | 6.63 | % | ||||||||||||||||||||
Effect of preferred equity | 2.78 | 2.77 | 6.56 | 3.31 | 2.42 | 3.88 | 2.36 | 2.18 | .10 | - | ||||||||||||||||||||||||||||||
Tangible equity to assets | 8.16 | 8.42 | 7.93 | 6.01 | 7.64 | 7.62 | 8.88 | 8.33 | 6.67 | 6.63 | ||||||||||||||||||||||||||||||
Effect of goodwill and other intangibles | .12 | .13 | .13 | .14 | .16 | .13 | 1.89 | 2.79 | 3.55 | 2.98 | ||||||||||||||||||||||||||||||
Equity to assets (GAAP) | 8.28 | % | 8.55 | % | 8.06 | % | 6.15 | % | 7.80 | % | 7.75 | % | 10.77 | % | 11.12 | % | 10.22 | % | 9.61 | % | ||||||||||||||||||||
Actual tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 8.22 | % | 8.52 | % | 8.69 | % | .75 | % | 5.64 | % | 8.22 | % | 5.64 | % | 10.39 | % | 8.34 | % | 8.21 | % | ||||||||||||||||||||
Effect of other comprehensive income | (.03 | ) | (.29 | ) | (.42 | ) | (.32 | ) | (.42 | ) | (.03 | ) | (.42 | ) | (.87 | ) | (.91 | ) | (.23 | ) | ||||||||||||||||||||
Effect of deferred tax limitation | - | - | - | - | - | - | - | (1.27 | ) | - | - | |||||||||||||||||||||||||||||
Effect of trust preferred | 1.18 | 1.19 | 1.15 | 1.13 | 1.06 | 1.18 | 1.06 | .97 | .88 | .65 | ||||||||||||||||||||||||||||||
Effect of preferred equity | 4.27 | 4.33 | 4.20 | 5.87 | 3.53 | 4.27 | 3.53 | 3.19 | 2.90 | - | ||||||||||||||||||||||||||||||
Tier I capital ratio (Regulatory) | 13.64 | % | 13.75 | % | 13.62 | % | 7.43 | % | 9.81 | % | 13.64 | % | 9.81 | % | 12.41 | % | 11.21 | % | 8.63 | % | ||||||||||||||||||||
Net charge-offs reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating net charge-offs | $ | 45,624 | $ | 17,546 | $ | 16,483 | $ | 231,574 | $ | 47,668 | $ | 311,227 | $ | 215,657 | $ | 276,669 | $ | 151,152 | $ | 21,834 | ||||||||||||||||||||
Subsequent partial recovery of fraud-related charge-off | - | - | - | - | (11,750 | ) | - | (11,750 | ) | - | - | 18,000 | ||||||||||||||||||||||||||||
Net charge-offs (GAAP) | $ | 45,624 | $ | 17,546 | $ | 16,483 | $ | 231,574 | $ | 35,918 | $ | 311,227 | $ | 203,907 | $ | 276,669 | $ | 151,152 | $ | 39,834 | ||||||||||||||||||||
Net charge-offs to average loans reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating net charge-offs to average loans | 4.39 | % | 1.68 | % | 1.58 | % | 20.71 | % | 4.03 | % | 7.33 | % | 4.42 | % | 5.03 | % | 2.57 | % | .38 | % | ||||||||||||||||||||
Subsequent partial recovery of fraud-related charge-off | - | - | - | - | (1.00 | ) | - | (.25 | ) | - | - | .31 | ||||||||||||||||||||||||||||
Net charge-offs to average loans (GAAP) | 4.39 | % | 1.68 | % | 1.58 | % | 20.71 | % | 3.03 | % | 7.33 | % | 4.17 | % | 5.03 | % | 2.57 | % | .69 | % | ||||||||||||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)2011 | 2010 | Linked | Year over | |||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Quarter | Year | ||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 1,822 | $ | 1,771 | $ | 1,742 | $ | 1,692 | $ | 1,761 | $ | 51 | $ | 61 | ||||||||||||||
Commercial construction | 164 | 169 | 195 | 213 | 297 | (5 | ) | (133 | ) | |||||||||||||||||||
Commercial & industrial | 428 | 429 | 428 | 431 | 441 | (1 | ) | (13 | ) | |||||||||||||||||||
Total commercial | 2,414 | 2,369 | 2,365 | 2,336 | 2,499 | 45 | (85 | ) | ||||||||||||||||||||
Residential construction | 448 | 474 | 502 | 550 | 695 | (26 | ) | (247 | ) | |||||||||||||||||||
Residential mortgage | 1,135 | 1,150 | 1,177 | 1,187 | 1,279 | (15 | ) | (144 | ) | |||||||||||||||||||
Consumer / installment | 113 | 117 | 119 | 121 | 131 | (4 | ) | (18 | ) | |||||||||||||||||||
Total loans | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | $ | 4,604 | - | (494 | ) | |||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
Atlanta MSA | $ | 1,220 | $ | 1,192 | $ | 1,188 | $ | 1,179 | $ | 1,310 | 28 | (90 | ) | |||||||||||||||
Gainesville MSA | 265 | 272 | 275 | 282 | 312 | (7 | ) | (47 | ) | |||||||||||||||||||
North Georgia | 1,426 | 1,478 | 1,500 | 1,531 | 1,689 | (52 | ) | (263 | ) | |||||||||||||||||||
Western North Carolina | 597 | 607 | 626 | 640 | 702 | (10 | ) | (105 | ) | |||||||||||||||||||
Coastal Georgia | 346 | 316 | 325 | 312 | 335 | 30 | 11 | |||||||||||||||||||||
East Tennessee | 256 | 245 | 249 | 250 | 256 | 11 | - | |||||||||||||||||||||
Total loans | $ | 4,110 | $ | 4,110 | $ | 4,163 | $ | 4,194 | $ | 4,604 | - | (494 | ) | |||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 88 | $ | 97 | $ | 105 | $ | 116 | $ | 174 | (9 | ) | (86 | ) | ||||||||||||||
Land loans | 61 | 60 | 62 | 69 | 99 | 1 | (38 | ) | ||||||||||||||||||||
Lot loans | 207 | 216 | 218 | 228 | 275 | (9 | ) | (68 | ) | |||||||||||||||||||
Total | 356 | 373 | 385 | 413 | 548 | (17 | ) | (192 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 59 | 64 | 74 | 88 | 97 | (5 | ) | (38 | ) | |||||||||||||||||||
Sold | 33 | 37 | 43 | 49 | 50 | (4 | ) | (17 | ) | |||||||||||||||||||
Total | 92 | 101 | 117 | 137 | 147 | (9 | ) | (55 | ) | |||||||||||||||||||
Total residential construction | $ | 448 | $ | 474 | $ | 502 | $ | 550 | $ | 695 | (26 | ) | (247 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION - ATLANTA MSA | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 17 | $ | 19 | $ | 20 | $ | 22 | $ | 30 | (2 | ) | (13 | ) | ||||||||||||||
Land loans | 14 | 15 | 16 | 19 | 23 | (1 | ) | (9 | ) | |||||||||||||||||||
Lot loans | 22 | 22 | 22 | 24 | 32 | - | (10 | ) | ||||||||||||||||||||
Total | 53 | 56 | 58 | 65 | 85 | (3 | ) | (32 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 27 | 28 | 30 | 34 | 38 | (1 | ) | (11 | ) | |||||||||||||||||||
Sold | 6 | 8 | 9 | 11 | 10 | (2 | ) | (4 | ) | |||||||||||||||||||
Total | 33 | 36 | 39 | 45 | 48 | (3 | ) | (15 | ) | |||||||||||||||||||
Total residential construction | $ | 86 | $ | 92 | $ | 97 | $ | 110 | $ | 133 | (6 | ) | (47 | ) |
(1) Excludes total loans of $54.5 million, $57.8 million, $70.8 million, $63.3 million and $68.2 million as of December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Loan Portfolio Composition at Year-End (1) | ||||||||||||||||||||
(in millions) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Commercial (sec. by RE) | $ | 1,822 | $ | 1,761 | $ | 1,779 | $ | 1,627 | $ | 1,476 | ||||||||||
Commercial construction | 164 | 297 | 363 | 500 | 527 | |||||||||||||||
Commercial & industrial | 428 | 441 | 390 | 410 | 418 | |||||||||||||||
Total commercial | 2,414 | 2,499 | 2,532 | 2,537 | 2,421 | |||||||||||||||
Residential construction | 448 | 695 | 1,050 | 1,479 | 1,829 | |||||||||||||||
Residential mortgage | 1,135 | 1,279 | 1,427 | 1,526 | 1,502 | |||||||||||||||
Consumer / installment | 113 | 131 | 142 | 163 | 177 | |||||||||||||||
Total loans | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | $ | 5,929 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||
Atlanta MSA | $ | 1,220 | $ | 1,310 | $ | 1,435 | $ | 1,706 | $ | 2,002 | ||||||||||
Gainesville MSA | 265 | 312 | 390 | 420 | 399 | |||||||||||||||
North Georgia | 1,426 | 1,689 | 1,884 | 2,040 | 2,060 | |||||||||||||||
Western North Carolina | 597 | 702 | 772 | 810 | 806 | |||||||||||||||
Coastal Georgia | 346 | 335 | 405 | 464 | 416 | |||||||||||||||
East Tennessee | 256 | 256 | 265 | 265 | 246 | |||||||||||||||
Total loans | $ | 4,110 | $ | 4,604 | $ | 5,151 | $ | 5,705 | $ | 5,929 |
(1) Excludes total loans of $54.5 million, $68.2 million and $85.1 million as of December 31, 2011, 2010 and 2009, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC. |
Financial Highlights |
Credit Quality (1) |
Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||||||||||||
(in thousands) | Non-performing Loans | Foreclosed Properties | Total NPAs | Non-performing Loans | Foreclosed Properties | Total NPAs | Non-performing Loans | Foreclosed Properties | Total NPAs | |||||||||||||||||||||||||||
NPAs BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 27,322 | $ | 9,745 | $ | 37,067 | $ | 21,998 | $ | 8,880 | $ | 30,878 | $ | 17,764 | $ | 6,796 | $ | 24,560 | ||||||||||||||||||
Commercial construction | 16,655 | 3,336 | 19,991 | 11,370 | 5,862 | 17,232 | 2,782 | 6,764 | 9,546 | |||||||||||||||||||||||||||
Commercial & industrial | 34,613 | - | 34,613 | 53,009 | - | 53,009 | 1,998 | - | 1,998 | |||||||||||||||||||||||||||
Total commercial | 78,590 | 13,081 | 91,671 | 86,377 | 14,742 | 101,119 | 22,544 | 13,560 | 36,104 | |||||||||||||||||||||||||||
Residential construction | 25,523 | 12,851 | 38,374 | 34,472 | 21,561 | 56,033 | 22,643 | 24,968 | 47,611 | |||||||||||||||||||||||||||
Residential mortgage | 22,358 | 6,927 | 29,285 | 22,671 | 7,960 | 30,631 | 24,809 | 9,056 | 33,865 | |||||||||||||||||||||||||||
Consumer / installment | 1,008 | - | 1,008 | 964 | - | 964 | 1,069 | - | 1,069 | |||||||||||||||||||||||||||
Total NPAs | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | $ | 71,065 | $ | 47,584 | $ | 118,649 | ||||||||||||||||||
Balance as a % of | ||||||||||||||||||||||||||||||||||||
Unpaid Principal | 71.3 | % | 35.9 | % | 59.3 | % | 77.8 | % | 33.4 | % | 59.3 | % | 64.5 | % | 32.6 | % | 46.3 | % | ||||||||||||||||||
NPAs BY MARKET | ||||||||||||||||||||||||||||||||||||
Atlanta MSA | $ | 14,480 | $ | 6,169 | $ | 20,649 | $ | 13,350 | $ | 12,971 | $ | 26,321 | $ | 14,700 | $ | 11,239 | $ | 25,939 | ||||||||||||||||||
Gainesville MSA | 2,069 | 3,760 | 5,829 | 5,311 | 2,495 | 7,806 | 4,505 | 3,174 | 7,679 | |||||||||||||||||||||||||||
North Georgia | 88,600 | 15,136 | 103,736 | 105,078 | 17,467 | 122,545 | 28,117 | 21,278 | 49,395 | |||||||||||||||||||||||||||
Western North Carolina | 15,100 | 5,365 | 20,465 | 13,243 | 7,941 | 21,184 | 15,153 | 8,953 | 24,106 | |||||||||||||||||||||||||||
Coastal Georgia | 5,248 | 1,620 | 6,868 | 5,600 | 2,354 | 7,954 | 5,357 | 2,564 | 7,921 | |||||||||||||||||||||||||||
East Tennessee | 1,982 | 809 | 2,791 | 1,902 | 1,035 | 2,937 | 3,233 | 376 | 3,609 | |||||||||||||||||||||||||||
Total NPAs | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | $ | 71,065 | $ | 47,584 | $ | 118,649 | ||||||||||||||||||
NPA ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 144,484 | $ | 44,263 | $ | 188,747 | $ | 71,065 | $ | 47,584 | $ | 118,649 | $ | 83,769 | $ | 54,378 | $ | 138,147 | ||||||||||||||||||
Loans placed on non-accrual | 45,675 | - | 45,675 | 103,365 | - | 103,365 | 35,911 | - | 35,911 | |||||||||||||||||||||||||||
Payments received | (1,884 | ) | - | (1,884 | ) | (3,995 | ) | - | (3,995 | ) | (7,702 | ) | - | (7,702 | ) | |||||||||||||||||||||
Loan charge-offs | (44,757 | ) | - | (44,757 | ) | (15,335 | ) | - | (15,335 | ) | (18,888 | ) | - | (18,888 | ) | |||||||||||||||||||||
Foreclosures | (16,039 | ) | 16,039 | - | (10,616 | ) | 10,616 | - | (22,025 | ) | 22,025 | - | ||||||||||||||||||||||||
Capitalized costs | - | 141 | 141 | - | 818 | 818 | - | 20 | 20 | |||||||||||||||||||||||||||
Note / property sales | - | (20,651 | ) | (20,651 | ) | - | (13,787 | ) | (13,787 | ) | - | (28,939 | ) | (28,939 | ) | |||||||||||||||||||||
Write downs | - | (3,893 | ) | (3,893 | ) | - | (1,772 | ) | (1,772 | ) | - | (3,118 | ) | (3,118 | ) | |||||||||||||||||||||
Net gains (losses) on sales | - | (3,040 | ) | (3,040 | ) | - | 804 | 804 | - | 3,218 | 3,218 | |||||||||||||||||||||||||
Ending Balance | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | $ | 71,065 | $ | 47,584 | $ | 118,649 |
Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 (2) | ||||||||||||||||||||||
(in thousands) | Net Charge-Offs | Net Charge- Offs to | Net Charge-Offs | Net Charge- Offs to | Net Charge-Offs | Net Charge- Offs to | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 4,962 | 1.09 | % | $ | 2,192 | .50 | % | $ | 3,259 | .76 | % | ||||||||||||
Commercial construction | 3,318 | 7.88 | 1,625 | 3.54 | 869 | 1.70 | ||||||||||||||||||
Commercial & industrial | 18,940 | 17.47 | 420 | .39 | 523 | .49 | ||||||||||||||||||
Total commercial | 27,220 | 4.51 | 4,237 | .71 | 4,651 | .79 | ||||||||||||||||||
Residential construction | 12,090 | 10.36 | 6,381 | 5.19 | 6,629 | 5.04 | ||||||||||||||||||
Residential mortgage | 5,887 | 2.04 | 6,110 | 2.09 | 4,589 | 1.55 | ||||||||||||||||||
Consumer / installment | 427 | 1.47 | 818 | 2.75 | 614 | 2.04 | ||||||||||||||||||
Total | $ | 45,624 | 4.39 | $ | 17,546 | 1.68 | $ | 16,483 | 1.58 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
Atlanta MSA | $ | 4,195 | 1.37 | % | $ | 2,813 | .94 | % | $ | 2,920 | .99 | % | ||||||||||||
Gainesville MSA | 2,572 | 3.84 | 1,804 | 2.64 | 2,318 | 3.36 | ||||||||||||||||||
North Georgia | 34,970 | 9.46 | 8,124 | 2.16 | 6,575 | 1.72 | ||||||||||||||||||
Western North Carolina | 3,180 | 2.10 | 3,608 | 2.31 | 3,522 | 2.21 | ||||||||||||||||||
Coastal Georgia | 335 | .41 | 709 | .88 | 815 | 1.02 | ||||||||||||||||||
East Tennessee | 372 | .59 | 488 | .78 | 333 | .54 | ||||||||||||||||||
Total | $ | 45,624 | 4.39 | $ | 17,546 | 1.68 | $ | 16,483 | 1.58 |
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Includes charge-offs on loans related to United’s previously announced asset disposition plan. Such charge-offs severely distorted charge off rates for the first and second quarters of 2011. A separate schedule has been included in this earnings release presenting the components of net charge-offs by loan category and geographic market for the first and second quarters of 2011.
(3) Annualized.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Net Charge-Off Summary (1)
Second Quarter 2011 | First Quarter 2011 | First Six Months 2011 | ||||||||||||||||||||||||||||||||||
(in thousands) | Other | Problem Asset Disposition Plan | Total | Other | Problem Asset Disposition Plan | Total | Other | Problem Asset Disposition Plan | Total | |||||||||||||||||||||||||||
BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Commercial (sec. by RE) | $ | 4,972 | $ | (1,713 | ) | $ | 3,259 | $ | 2,842 | $ | 45,765 | $ | 48,607 | $ | 7,814 | $ | 44,052 | $ | 51,866 | |||||||||||||||||
Commercial construction | 2,201 | (1,332 | ) | 869 | 1,146 | 48,569 | 49,715 | 3,347 | 47,237 | 50,584 | ||||||||||||||||||||||||||
Commercial & industrial | 639 | (116 | ) | 523 | 513 | 3,527 | 4,040 | 1,152 | 3,411 | 4,563 | ||||||||||||||||||||||||||
Total commercial | 7,812 | (3,161 | ) | 4,651 | 4,501 | 97,861 | 102,362 | 12,313 | 94,700 | 107,013 | ||||||||||||||||||||||||||
Residential construction | 9,471 | (2,842 | ) | 6,629 | 10,643 | 81,495 | 92,138 | 20,114 | 78,653 | 98,767 | ||||||||||||||||||||||||||
Residential mortgage | 5,844 | (1,255 | ) | 4,589 | 4,989 | 31,394 | 36,383 | 10,833 | 30,139 | 40,972 | ||||||||||||||||||||||||||
Consumer / installment | 625 | (11 | ) | 614 | 383 | 308 | 691 | 1,008 | 297 | 1,305 | ||||||||||||||||||||||||||
�� Total | $ | 23,752 | $ | (7,269 | ) | $ | 16,483 | $ | 20,516 | $ | 211,058 | $ | 231,574 | $ | 44,268 | $ | 203,789 | $ | 248,057 | |||||||||||||||||
BY MARKET | ||||||||||||||||||||||||||||||||||||
Atlanta MSA | $ | 4,875 | $ | (1,955 | ) | $ | 2,920 | $ | 3,296 | $ | 53,193 | $ | 56,489 | $ | 8,171 | $ | 51,238 | $ | 59,409 | |||||||||||||||||
Gainesville MSA | 2,576 | (258 | ) | 2,318 | 954 | 7,662 | 8,616 | 3,530 | 7,404 | 10,934 | ||||||||||||||||||||||||||
North Georgia | 10,360 | (3,785 | ) | 6,575 | 8,544 | 114,761 | 123,305 | 18,904 | 110,976 | 129,880 | ||||||||||||||||||||||||||
Western North Carolina | 4,263 | (741 | ) | 3,522 | 6,749 | 19,698 | 26,447 | 11,012 | 18,957 | 29,969 | ||||||||||||||||||||||||||
Coastal Georgia | 1,206 | (391 | ) | 815 | 341 | 11,662 | 12,003 | 1,547 | 11,271 | 12,818 | ||||||||||||||||||||||||||
East Tennessee | 472 | (139 | ) | 333 | 632 | 4,082 | 4,714 | 1,104 | 3,943 | 5,047 | ||||||||||||||||||||||||||
Total | $ | 23,752 | $ | (7,269 | ) | $ | 16,483 | $ | 20,516 | $ | 211,058 | $ | 231,574 | $ | 44,268 | $ | 203,789 | $ | 248,057 |
(1) This schedule presents net charge-offs by loan type and geographic market separated between those charge offs related to United’s first quarter 2011 Problem Asset Disposition Plan including losses on loans sold in the bulk loan sale transaction that closed on April 18, 2011 and all other charge-offs. The charge-offs on the bulk loan sale recognized in the first quarter were estimated based on indicative bids from prospective buyers. Actual losses were less than estimated resulting in an adjustment to the loss in the second quarter.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Operations (Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in thousands, except per share data) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 57,697 | $ | 66,659 | $ | 239,056 | $ | 277,904 | ||||||||
Investment securities, including tax exempt of $255, $251, $1,009 and $1,137 | 13,296 | 13,215 | 56,260 | 59,958 | ||||||||||||
Federal funds sold, commercial paper and deposits in banks | 489 | 844 | 2,321 | 3,260 | ||||||||||||
Total interest revenue | 71,482 | 80,718 | 297,637 | 341,122 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW | 807 | 1,662 | 3,998 | 6,966 | ||||||||||||
Money market | 800 | 2,036 | 5,456 | 7,552 | ||||||||||||
Savings | 41 | 81 | 234 | 331 | ||||||||||||
Time | 7,338 | 12,868 | 39,151 | 66,883 | ||||||||||||
Total deposit interest expense | 8,986 | 16,647 | 48,839 | 81,732 | ||||||||||||
Federal funds purchased, repurchase agreements and other short-term borrowings | 1,053 | 1,073 | 4,250 | 4,235 | ||||||||||||
Federal Home Loan Bank advances | 441 | 608 | 2,042 | 3,355 | ||||||||||||
Long-term debt | 2,375 | 2,755 | 10,544 | 10,749 | ||||||||||||
Total interest expense | 12,855 | 21,083 | 65,675 | 100,071 | ||||||||||||
Net interest revenue | 58,627 | 59,635 | 231,962 | 241,051 | ||||||||||||
Provision for loan losses | 14,000 | 36,000 | 251,000 | 223,000 | ||||||||||||
Net interest revenue after provision for loan losses | 44,627 | 23,635 | (19,038 | ) | 18,051 | |||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 7,248 | 7,039 | 29,110 | 30,127 | ||||||||||||
Mortgage loan and other related fees | 1,825 | 1,868 | 5,419 | 7,019 | ||||||||||||
Brokerage fees | 782 | 778 | 2,986 | 2,662 | ||||||||||||
Securities gains, net | 4 | - | 842 | 2,552 | ||||||||||||
Loss from prepayment of debt | - | - | (791 | ) | (2,233 | ) | ||||||||||
Other | 2,808 | 2,757 | 12,342 | 8,421 | ||||||||||||
Total fee revenue | 12,667 | 12,442 | 49,908 | 48,548 | ||||||||||||
Total revenue | 57,294 | 36,077 | 30,870 | 66,599 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 23,473 | 23,777 | 100,095 | 96,618 | ||||||||||||
Communications and equipment | 3,129 | 3,377 | 13,135 | 13,781 | ||||||||||||
Occupancy | 3,972 | 4,024 | 15,645 | 15,394 | ||||||||||||
Advertising and public relations | 944 | 1,102 | 4,291 | 4,625 | ||||||||||||
Postage, printing and supplies | 1,017 | 1,063 | 4,256 | 4,072 | ||||||||||||
Professional fees | 1,996 | 3,016 | 9,727 | 9,254 | ||||||||||||
Foreclosed property | 9,302 | 20,602 | 78,905 | 65,707 | ||||||||||||
FDIC assessments and other regulatory charges | 2,599 | 3,299 | 14,259 | 13,747 | ||||||||||||
Amortization of intangibles | 746 | 771 | 3,016 | 3,160 | ||||||||||||
Other | 3,902 | 3,887 | 18,270 | 16,594 | ||||||||||||
Goodwill impairment | - | - | - | 210,590 | ||||||||||||
Loss on sale of nonperforming assets | - | - | - | 45,349 | ||||||||||||
Total operating expenses | 51,080 | 64,918 | 261,599 | 498,891 | ||||||||||||
Loss from continuing operations before income taxes | 6,214 | (28,841 | ) | (230,729 | ) | (432,292 | ) | |||||||||
Income tax benefit | (3,687 | ) | 144,263 | (3,983 | ) | 71,217 | ||||||||||
Net loss from continuing operations | 9,901 | (173,104 | ) | (226,746 | ) | (503,509 | ) | |||||||||
Loss from discontinued operations, net of income taxes | - | - | - | (101 | ) | |||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | - | - | - | 1,266 | ||||||||||||
Net loss | 9,901 | (173,104 | ) | (226,746 | ) | (502,344 | ) | |||||||||
Preferred stock dividends and discount accretion | 3,025 | 2,586 | 11,838 | 10,316 | ||||||||||||
Net loss available to common shareholders | $ | 6,876 | $ | (175,690 | ) | $ | (238,584 | ) | $ | (512,660 | ) | |||||
Loss from continuing operations per common share - Basic | $ | .12 | $ | (9.25 | ) | $ | (5.97 | ) | $ | (27.15 | ) | |||||
Loss from continuing operations per common share - Diluted | .12 | (9.25 | ) | (5.97 | ) | (27.15 | ) | |||||||||
Loss per common share - Basic | .12 | (9.25 | ) | (5.97 | ) | (27.09 | ) | |||||||||
Loss per common share - Diluted | .12 | (9.25 | ) | (5.97 | ) | (27.09 | ) | |||||||||
Weighted average common shares outstanding - Basic | 57,646 | 18,984 | 39,943 | 18,925 | ||||||||||||
Weighted average common shares outstanding - Diluted | 57,646 | 18,984 | 39,943 | 18,925 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
December 31, | December 31, | |||||||
(in thousands, except share and per share data) | 2011 | 2010 | ||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 53,807 | $ | 95,994 | ||||
Interest-bearing deposits in banks | 139,609 | 111,901 | ||||||
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments | 185,000 | 441,562 | ||||||
Cash and cash equivalents | 378,416 | 649,457 | ||||||
Securities available for sale | 1,790,047 | 1,224,417 | ||||||
Securities held to maturity (fair value $333,912 and $267,988) | 330,203 | 265,807 | ||||||
Mortgage loans held for sale | 23,881 | 35,908 | ||||||
Loans, net of unearned income | 4,109,614 | 4,604,126 | ||||||
Less allowance for loan losses | 114,468 | 174,695 | ||||||
Loans, net | 3,995,146 | 4,429,431 | ||||||
Assets covered by loss sharing agreements with the FDIC | 78,145 | 131,887 | ||||||
Premises and equipment, net | 175,088 | 178,239 | ||||||
Accrued interest receivable | 20,693 | 24,299 | ||||||
Goodwill and other intangible assets | 8,428 | 11,446 | ||||||
Foreclosed property | 32,859 | 142,208 | ||||||
Other assets | 150,514 | 183,160 | ||||||
Total assets | $ | 6,983,420 | $ | 7,276,259 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand | $ | 992,109 | $ | 793,414 | ||||
NOW | 1,509,896 | 1,424,781 | ||||||
Money market | 1,038,778 | 891,252 | ||||||
Savings | 199,007 | 183,894 | ||||||
Time: | ||||||||
Less than $100,000 | 1,332,394 | 1,496,700 | ||||||
Greater than $100,000 | 847,152 | 1,002,359 | ||||||
Brokered | 178,647 | 676,772 | ||||||
Total deposits | 6,097,983 | 6,469,172 | ||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 102,577 | 101,067 | ||||||
Federal Home Loan Bank advances | 40,625 | 55,125 | ||||||
Long-term debt | 120,225 | 150,146 | ||||||
Unsettled securities purchases | 10,325 | - | ||||||
Accrued expenses and other liabilities | 36,199 | 32,171 | ||||||
Total liabilities | 6,407,934 | 6,807,681 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||
Series A; $10 stated value; 21,700 shares issued and outstanding | 217 | 217 | ||||||
Series B; $1,000 stated value; 180,000 shares issued and outstanding | 177,092 | 175,711 | ||||||
Series D; $1,000 stated value; 16,613 shares issued and outstanding | 16,613 | - | ||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||
41,647,100 and 18,937,001 shares issued and outstanding | 41,647 | 18,937 | ||||||
Common stock, non-voting, $1 par value; 30,000,000 shares authorized; | ||||||||
15,914,209 shares issued and outstanding | 15,914 | - | ||||||
Common stock issuable; 93,681 and 67,287 shares | 3,233 | 3,894 | ||||||
Capital surplus | 1,054,940 | 741,244 | ||||||
Accumulated deficit | (730,861 | ) | (492,276 | ) | ||||
Accumulated other comprehensive income | (3,309 | ) | 20,851 | |||||
Total shareholders’ equity | 575,486 | 468,578 | ||||||
Total liabilities and shareholders’ equity | $ | 6,983,420 | $ | 7,276,259 |
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
2011 | 2010 | |||||||||||||||||||||||
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) | $ | 4,175,320 | $ | 57,773 | 5.49 | % | $ | 4,768,120 | $ | 66,750 | 5.55 | % | ||||||||||||
Taxable securities (3) | 2,114,069 | 13,041 | 2.47 | 1,327,999 | 12,964 | 3.90 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 27,224 | 417 | 6.13 | 25,917 | 410 | 6.33 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 371,606 | 674 | .73 | 558,143 | 1,091 | .78 | ||||||||||||||||||
Total interest-earning assets | 6,688,219 | 71,905 | 4.27 | 6,680,179 | 81,215 | 4.83 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (145,559 | ) | (185,300 | ) | ||||||||||||||||||||
Cash and due from banks | 54,485 | 112,923 | ||||||||||||||||||||||
Premises and equipment | 176,182 | 178,729 | ||||||||||||||||||||||
Other assets (3) | 245,664 | 467,871 | ||||||||||||||||||||||
Total assets | $ | 7,018,991 | $ | 7,254,402 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,451,581 | 807 | .22 | $ | 1,436,976 | 1,662 | .46 | ||||||||||||||||
Money market | 1,041,375 | 800 | .30 | 870,884 | 2,036 | .93 | ||||||||||||||||||
Savings | 198,541 | 41 | .08 | 184,651 | 81 | .17 | ||||||||||||||||||
Time less than $100,000 | 1,358,367 | 3,668 | 1.07 | 1,489,933 | 6,292 | 1.68 | ||||||||||||||||||
Time greater than $100,000 | 875,434 | 2,867 | 1.30 | 1,010,104 | 4,736 | 1.86 | ||||||||||||||||||
Brokered | 180,933 | 803 | 1.76 | 491,477 | 1,840 | 1.49 | ||||||||||||||||||
Total interest-bearing deposits | 5,106,231 | 8,986 | .70 | 5,484,025 | 16,647 | 1.20 | ||||||||||||||||||
Federal funds purchased and other borrowings | 102,776 | 1,053 | 4.06 | 102,830 | 1,073 | 4.14 | ||||||||||||||||||
Federal Home Loan Bank advances | 40,625 | 441 | 4.31 | 58,712 | 608 | 4.11 | ||||||||||||||||||
Long-term debt | 120,217 | 2,375 | 7.84 | 150,137 | 2,755 | 7.28 | ||||||||||||||||||
Total borrowed funds | 263,618 | 3,869 | 5.82 | 311,679 | 4,436 | 5.65 | ||||||||||||||||||
Total interest-bearing liabilities | 5,369,849 | 12,855 | .95 | 5,795,704 | 21,083 | 1.44 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,008,327 | 809,604 | ||||||||||||||||||||||
Other liabilities | 59,908 | 83,452 | ||||||||||||||||||||||
Total liabilities | 6,438,084 | 6,688,760 | ||||||||||||||||||||||
Shareholders’ equity | 580,907 | 565,642 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,018,991 | $ | 7,254,402 | ||||||||||||||||||||
Net interest revenue | $ | 59,050 | $ | 60,132 | ||||||||||||||||||||
Net interest-rate spread | 3.32 | % | 3.39 | % | ||||||||||||||||||||
Net interest margin (4) | 3.51 | % | 3.58 | % |
(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 and loans that are held for sale. |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized gains of $31.3 million in 2011 and $40.8 million in 2010 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 Twelve Months Ended December 31, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
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) | $ | 4,307,111 | $ | 239,195 | 5.55 | % | $ | 4,960,805 | $ | 278,149 | 5.61 | % | ||||||||||||
Taxable securities (3) | 1,973,678 | 55,251 | 2.80 | 1,425,322 | 58,821 | 4.13 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 25,693 | 1,651 | 6.43 | 27,827 | 1,860 | 6.68 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 478,403 | 3,247 | .68 | 408,359 | 4,293 | 1.05 | ||||||||||||||||||
Total interest-earning assets | 6,784,885 | 299,344 | 4.41 | 6,822,313 | 343,123 | 5.03 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (145,656 | ) | (190,227 | ) | ||||||||||||||||||||
Cash and due from banks | 90,212 | 106,582 | ||||||||||||||||||||||
Premises and equipment | 178,061 | 180,379 | ||||||||||||||||||||||
Other assets (3) | 281,233 | 685,547 | ||||||||||||||||||||||
Total assets | $ | 7,188,735 | $ | 7,604,594 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,348,493 | 3,998 | .30 | $ | 1,360,729 | 6,966 | .51 | ||||||||||||||||
Money market | 993,871 | 5,456 | .55 | 780,982 | 7,552 | .97 | ||||||||||||||||||
Savings | 195,468 | 234 | .12 | 184,479 | 331 | .18 | ||||||||||||||||||
Time less than $100,000 | 1,471,596 | 18,648 | 1.27 | 1,581,750 | 30,260 | 1.91 | ||||||||||||||||||
Time greater than $100,000 | 948,659 | 14,347 | 1.51 | 1,084,967 | 23,114 | 2.13 | ||||||||||||||||||
Brokered | 401,393 | 6,156 | 1.53 | 610,483 | 13,509 | 2.21 | ||||||||||||||||||
Total interest-bearing deposits | 5,359,480 | 48,839 | .91 | 5,603,390 | 81,732 | 1.46 | ||||||||||||||||||
Federal funds purchased and other borrowings | 102,727 | 4,250 | 4.14 | 103,479 | 4,235 | 4.09 | ||||||||||||||||||
Federal Home Loan Bank advances | 47,220 | 2,042 | 4.32 | 90,137 | 3,355 | 3.72 | ||||||||||||||||||
Long-term debt | 139,666 | 10,544 | 7.55 | 150,107 | 10,749 | 7.16 | ||||||||||||||||||
Total borrowed funds | 289,613 | 16,836 | 5.81 | 343,723 | 18,339 | 5.34 | ||||||||||||||||||
Total interest-bearing liabilities | 5,649,093 | 65,675 | 1.16 | 5,947,113 | 100,071 | 1.68 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 915,649 | 769,395 | ||||||||||||||||||||||
Other liabilities | 66,809 | 69,367 | ||||||||||||||||||||||
Total liabilities | 6,631,551 | 6,785,875 | ||||||||||||||||||||||
Shareholders’ equity | 557,184 | 818,719 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,188,735 | $ | 7,604,594 | ||||||||||||||||||||
Net interest revenue | $ | 233,669 | $ | 243,052 | ||||||||||||||||||||
Net interest-rate spread | 3.25 | % | 3.35 | % | ||||||||||||||||||||
Net interest margin (4) | 3.44 | % | 3.56 | % |
(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 and loans that are held for sale. |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized gains of $32.2 million in 2011 and $43.2 million in 2010 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. | ||||||||||||||||||||||||||||||||||||||||||||||||
Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | ||||||||||||||||||||||||||||||||||||
data; taxable equivalent) | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | ||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | (5,959 | ) | $ | 5,137 | $ | (822 | ) | $ | 5,077 | $ | (4,411 | ) | $ | 666 | $ | (94,990 | ) | $ | 94,850 | $ | (140 | ) | $ | (12,446 | ) | $ | 156,709 | $ | 144,263 | ||||||||||||||||||
Net income (loss) from continuing operations | (6,202 | ) | (5,137 | ) | (11,339 | ) | 7,617 | 4,411 | 12,028 | (142,486 | ) | (94,850 | ) | (237,336 | ) | (16,395 | ) | (156,709 | ) | (173,104 | ) | |||||||||||||||||||||||||||
Net operating income (loss) from continuing operations | (6,202 | ) | (5,137 | ) | (11,339 | ) | 7,617 | 4,411 | 12,028 | (142,486 | ) | (94,850 | ) | (237,336 | ) | (23,574 | ) | (161,280 | ) | (184,854 | ) | |||||||||||||||||||||||||||
Net income (loss) | (6,202 | ) | (5,137 | ) | (11,339 | ) | 7,617 | 4,411 | 12,028 | (142,486 | ) | (94,850 | ) | (237,336 | ) | (16,395 | ) | (156,709 | ) | (173,104 | ) | |||||||||||||||||||||||||||
Net income (loss) available to common shareholders | (9,221 | ) | (5,137 | ) | (14,358 | ) | 4,601 | 4,411 | 9,012 | (145,264 | ) | (94,850 | ) | (240,114 | ) | (18,981 | ) | (156,709 | ) | (175,690 | ) | |||||||||||||||||||||||||||
Per Share Information | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations - basic | $ | (.16 | ) | $ | (.09 | ) | $ | (.25 | ) | $ | .18 | $ | .17 | $ | .35 | $ | (7.87 | ) | $ | (5.13 | ) | $ | (13.00 | ) | $ | (1.00 | ) | $ | (8.25 | ) | $ | (9.25 | ) | |||||||||||||||
Income (loss) from continuing operations - diluted | (.16 | ) | (.09 | ) | (.25 | ) | .08 | .08 | .16 | (7.87 | ) | (5.13 | ) | (13.00 | ) | (1.00 | ) | (8.25 | ) | (9.25 | ) | |||||||||||||||||||||||||||
Operating income (loss) from continuing operations - diluted | (.16 | ) | (.09 | ) | (.25 | ) | .08 | .08 | .16 | (7.87 | ) | (5.13 | ) | (13.00 | ) | (1.38 | ) | (8.49 | ) | (9.87 | ) | |||||||||||||||||||||||||||
Income (loss) - basic | (.16 | ) | (.09 | ) | (.25 | ) | .18 | .17 | .35 | (7.87 | ) | (5.13 | ) | (13.00 | ) | (1.00 | ) | (8.25 | ) | (9.25 | ) | |||||||||||||||||||||||||||
Income (loss) - diluted | (.16 | ) | (.09 | ) | (.25 | ) | .08 | .08 | .16 | (7.87 | ) | (5.13 | ) | (13.00 | ) | (1.00 | ) | (8.25 | ) | (9.25 | ) | |||||||||||||||||||||||||||
Key Performance Measures | ||||||||||||||||||||||||||||||||||||||||||||||||
Return on equity (%) | (5.72 | ) | (9.34 | ) | (15.06 | ) | 5.34 | 37.26 | 42.60 | (147.11 | ) | (379.43 | ) | (526.54 | ) | (17.16 | ) | (178.94 | ) | (196.10 | ) | |||||||||||||||||||||||||||
Return on assets (%) | (.34 | ) | (.30 | ) | (.64 | ) | .40 | .26 | .66 | (7.61 | ) | (5.43 | ) | (13.04 | ) | (.89 | ) | (8.58 | ) | (9.47 | ) | |||||||||||||||||||||||||||
Equity to assets (%) | 11.83 | (3.28 | ) | 8.55 | 11.21 | (3.15 | ) | 8.06 | 8.82 | (2.67 | ) | 6.15 | 8.85 | (1.05 | ) | 7.80 | ||||||||||||||||||||||||||||||||
Tangible equity to assets (%) | 11.76 | (3.34 | ) | 8.42 | 11.13 | (3.20 | ) | 7.93 | 8.73 | (2.72 | ) | 6.01 | 8.75 | (1.11 | ) | 7.64 | ||||||||||||||||||||||||||||||||
Tangible common equity to assets (%) | 9.09 | (3.44 | ) | 5.65 | 4.79 | (3.42 | ) | 1.37 | 5.51 | (2.81 | ) | 2.70 | 6.35 | (1.13 | ) | 5.22 | ||||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (%) | 14.41 | (5.89 | ) | 8.52 | 14.26 | (5.57 | ) | 8.69 | 6.40 | (5.65 | ) | .75 | 9.05 | (3.41 | ) | 5.64 | ||||||||||||||||||||||||||||||||
Average total assets ($ in millions) | $ | 7,261 | $ | (261 | ) | $ | 7,000 | $ | 7,624 | $ | (261 | ) | $ | 7,363 | $ | 7,595 | $ | (216 | ) | $ | 7,379 | $ | 7,338 | $ | (84 | ) | $ | 7,254 | ||||||||||||||||||||
Average shareholders’ equity ($ in millions) | 859 | (261 | ) | 598 | 854 | (260 | ) | 594 | 670 | (216 | ) | 454 | 649 | (83 | ) | 566 | ||||||||||||||||||||||||||||||||
Regulatory Capital Ratios - Holding Company | ||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage ratio (%) | 8.97 | (.18 | ) | 8.79 | 8.71 | (.19 | ) | 8.52 | 4.95 | (.20 | ) | 4.75 | 6.75 | .01 | 6.76 | |||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (%) | 13.97 | (.22 | ) | 13.75 | 13.88 | (.26 | ) | 13.62 | 7.67 | (.24 | ) | 7.43 | 9.67 | .14 | 9.81 | |||||||||||||||||||||||||||||||||
Total risk-based capital ratio (%) | 15.84 | (.21 | ) | 15.63 | 16.40 | (.24 | ) | 16.16 | 15.34 | (.49 | ) | 14.85 | 12.11 | .14 | 12.25 | |||||||||||||||||||||||||||||||||
Regulatory Capital Ratios - Bank | ||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage ratio (%) | 8.84 | (.18 | ) | 8.66 | 8.54 | (.19 | ) | 8.35 | 8.34 | (.22 | ) | 8.12 | 7.45 | - | 7.45 | |||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio (%) | 13.80 | (.26 | ) | 13.54 | 13.62 | (.29 | ) | 13.33 | 12.95 | (.24 | ) | 12.71 | 10.72 | .13 | 10.85 | |||||||||||||||||||||||||||||||||
Total risk-based capital ratio (%) | 15.07 | (.25 | ) | 14.82 | 15.41 | (.29 | ) | 15.12 | 14.73 | (.24 | ) | 14.49 | 12.48 | .13 | 12.61 |
UNITED COMMUNITY BANKS, INC. |
Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset |
For the Year to Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | ||||||||||||||||||||||||||||||||||||
data; taxable equivalent) | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | ||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | (95,872 | ) | $ | 95,576 | $ | (296 | ) | $ | (89,913 | ) | $ | 90,439 | $ | 526 | $ | (94,990 | ) | $ | 94,850 | $ | (140 | ) | $ | (85,492 | ) | $ | 156,709 | $ | 71,217 | ||||||||||||||||||
Net income (loss) from continuing operations | (141,071 | ) | (95,576 | ) | (236,647 | ) | (134,869 | ) | (90,439 | ) | (225,308 | ) | (142,486 | ) | (94,850 | ) | (237,336 | ) | (346,800 | ) | (156,709 | ) | (503,509 | ) | ||||||||||||||||||||||||
Net operating income (loss) from continuing operations | (141,071 | ) | (95,576 | ) | (236,647 | ) | (134,869 | ) | (90,439 | ) | (225,308 | ) | (142,486 | ) | (94,850 | ) | (237,336 | ) | (143,389 | ) | (161,280 | ) | (304,669 | ) | ||||||||||||||||||||||||
Net income (loss) | (141,071 | ) | (95,576 | ) | (236,647 | ) | (134,869 | ) | (90,439 | ) | (225,308 | ) | (142,486 | ) | (94,850 | ) | (237,336 | ) | (345,635 | ) | (156,709 | ) | (502,344 | ) | ||||||||||||||||||||||||
Net income (loss) available to common shareholders | (149,884 | ) | (95,576 | ) | (245,460 | ) | (140,663 | ) | (90,439 | ) | (231,102 | ) | (145,264 | ) | (94,850 | ) | (240,114 | ) | (355,951 | ) | (156,709 | ) | (512,660 | ) | ||||||||||||||||||||||||
Per Share Information | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations - basic | $ | (4.41 | ) | $ | (2.82 | ) | $ | (7.23 | ) | $ | (6.40 | ) | $ | (4.12 | ) | $ | (10.52 | ) | $ | (7.87 | ) | $ | (5.13 | ) | $ | (13.00 | ) | $ | (18.87 | ) | $ | (8.28 | ) | $ | (27.15 | ) | ||||||||||||
Income (loss) from continuing operations - diluted | (4.41 | ) | (2.82 | ) | (7.23 | ) | (6.40 | ) | (4.12 | ) | (10.52 | ) | (7.87 | ) | (5.13 | ) | (13.00 | ) | (18.87 | ) | (8.28 | ) | (27.15 | ) | ||||||||||||||||||||||||
Operating income (loss) from continuing operations - diluted | (4.41 | ) | (2.82 | ) | (7.23 | ) | (6.40 | ) | (4.12 | ) | (10.52 | ) | (7.87 | ) | (5.13 | ) | (13.00 | ) | (8.12 | ) | (8.52 | ) | (16.64 | ) | ||||||||||||||||||||||||
Income (loss) - basic | (4.41 | ) | (2.82 | ) | (7.23 | ) | (6.40 | ) | (4.12 | ) | (10.52 | ) | (7.87 | ) | (5.13 | ) | (13.00 | ) | (18.81 | ) | (8.28 | ) | (27.09 | ) | ||||||||||||||||||||||||
Income (loss) - diluted | (4.41 | ) | (2.82 | ) | (7.23 | ) | (6.40 | ) | (4.12 | ) | (10.52 | ) | (7.87 | ) | (5.13 | ) | (13.00 | ) | (18.81 | ) | (8.28 | ) | (27.09 | ) | ||||||||||||||||||||||||
Consolidated Statement of Changes in Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (141,071 | ) | $ | (95,576 | ) | $ | (236,647 | ) | $ | (134,869 | ) | $ | (90,439 | ) | $ | (225,308 | ) | $ | (142,486 | ) | $ | (94,850 | ) | $ | (237,336 | ) | $ | (345,635 | ) | $ | (156,709 | ) | $ | (502,344 | ) | ||||||||||||
Unrealized holding gains (losses) on available for sale securities | 2,910 | 1,678 | 4,588 | 5,133 | 2,870 | 8,003 | (1,003 | ) | (674 | ) | (1,677 | ) | (4,986 | ) | (3,165 | ) | (8,151 | ) | ||||||||||||||||||||||||||||||
Reclassification adjustment for gains on securities available for sale included in fee revenue | - | - | - | - | - | - | - | - | - | (1,559 | ) | (993 | ) | (2,552 | ) | |||||||||||||||||||||||||||||||||
Unrealized losses on derivative financial instruments qualifying as cash flow hedges | (7,680 | ) | (4,890 | ) | (12,570 | ) | (5,879 | ) | (3,743 | ) | (9,622 | ) | (2,580 | ) | (1,643 | ) | (4,223 | ) | (10,011 | ) | (6,070 | ) | (16,081 | ) | ||||||||||||||||||||||||
Comprehensive income (loss) | (145,841 | ) | (98,788 | ) | (244,629 | ) | (135,615 | ) | (91,312 | ) | (226,927 | ) | (146,069 | ) | (97,167 | ) | (243,236 | ) | (362,191 | ) | (166,937 | ) | (529,128 | ) | ||||||||||||||||||||||||
Penalty received on incomplete private equity transaction | 2,375 | 875 | 3,250 | 2,375 | 875 | 3,250 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (141,071 | ) | $ | (95,576 | ) | $ | (236,647 | ) | $ | (134,869 | ) | $ | (90,439 | ) | $ | (225,308 | ) | $ | (142,486 | ) | $ | (94,850 | ) | $ | (237,336 | ) | $ | (345,635 | ) | $ | (156,709 | ) | $ | (502,344 | ) | ||||||||||||
Deferred income tax benefit | - | - | - | - | - | - | - | - | - | (87,455 | ) | 156,709 | 69,254 | |||||||||||||||||||||||||||||||||||
Net change in other assets and accrued interest receivable | (35,735 | ) | 95,576 | 59,841 | (49,255 | ) | 90,439 | 41,184 | (90,321 | ) | 94,850 | 4,529 | - | - | - | |||||||||||||||||||||||||||||||||
Key Performance Measures | ||||||||||||||||||||||||||||||||||||||||||||||||
Return on equity (%) | (43.31 | ) | (108.01 | ) | (151.32 | ) | (76.07 | ) | (269.79 | ) | (345.86 | ) | (147.11 | ) | (379.43 | ) | (526.54 | ) | (57.08 | ) | (27.98 | ) | (85.06 | ) | ||||||||||||||||||||||||
Return on assets (%) | (2.52 | ) | (1.85 | ) | (4.37 | ) | (3.57 | ) | (2.59 | ) | (6.16 | ) | (7.61 | ) | (5.43 | ) | (13.04 | ) | (4.53 | ) | (2.08 | ) | (6.61 | ) | ||||||||||||||||||||||||
Equity to assets (%) | 10.61 | (3.03 | ) | 7.58 | 10.02 | (2.91 | ) | 7.11 | 8.82 | (2.67 | ) | 6.15 | 11.01 | (.24 | ) | 10.77 | ||||||||||||||||||||||||||||||||
Tangible equity to assets (%) | 10.53 | (3.08 | ) | 7.45 | 9.94 | (2.96 | ) | 6.98 | 8.73 | (2.72 | ) | 6.01 | 9.15 | (.32 | ) | 8.83 | ||||||||||||||||||||||||||||||||
Tangible common equity to assets (%) | 6.44 | (3.23 | ) | 3.21 | 5.15 | (3.12 | ) | 2.03 | 5.51 | (2.81 | ) | 2.70 | 6.80 | (.32 | ) | 6.48 | ||||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (%) | 14.41 | (5.89 | ) | 8.52 | 14.26 | (5.57 | ) | 8.69 | 6.40 | (5.65 | ) | .75 | 9.05 | (3.41 | ) | 5.64 | ||||||||||||||||||||||||||||||||
Average total assets ($ in millions) | $ | 7,492 | $ | (246 | ) | $ | 7,246 | $ | 7,609 | $ | (238 | ) | $ | 7,371 | $ | 7,595 | $ | (216 | ) | $ | 7,379 | $ | 7,626 | $ | (21 | ) | $ | 7,605 | ||||||||||||||||||||
Average shareholders’ equity ($ in millions) | 795 | (246 | ) | 549 | 763 | (239 | ) | 524 | 670 | (216 | ) | 454 | 840 | (21 | ) | 819 |
UNITED COMMUNITY BANKS, INC. |
Previously Reported Financial Information - As Restated for Full Valuation Allowance on Net Deferred Tax Asset |
As Of | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | As | Adjust- | As | ||||||||||||||||||||||||||||||||||||
data; taxable equivalent) | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | Reported | ment | Restated | ||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||
Net deferred tax asset | $ | 264,275 | $ | (264,275 | ) | $ | - | $ | 261,268 | $ | (261,268 | ) | $ | - | $ | 266,367 | $ | (266,367 | ) | $ | - | $ | 166,937 | $ | (166,937 | ) | $ | - | ||||||||||||||||||||
Other assets | 153,329 | (575 | ) | 152,754 | 172,074 | 3,894 | 175,968 | 174,742 | 2,263 | 177,005 | 183,160 | - | 183,160 | |||||||||||||||||||||||||||||||||||
Total assets | 7,159,123 | (264,850 | ) | 6,894,273 | 7,409,669 | (257,374 | ) | 7,152,295 | 7,973,592 | (264,104 | ) | 7,709,488 | 7,443,196 | (166,937 | ) | 7,276,259 | ||||||||||||||||||||||||||||||||
Capital surplus | 1,052,690 | 875 | 1,053,565 | 1,051,607 | 875 | 1,052,482 | 738,963 | - | 738,963 | 741,244 | - | 741,244 | ||||||||||||||||||||||||||||||||||||
(Accumulated deficit) retained earnings | (485,451 | ) | (252,285 | ) | (737,736 | ) | (476,230 | ) | (247,148 | ) | (723,378 | ) | (480,831 | ) | (251,559 | ) | (732,390 | ) | (335,567 | ) | (156,709 | ) | (492,276 | ) | ||||||||||||||||||||||||
Accumulated other comprehensive income | 26,309 | (13,440 | ) | 12,869 | 30,333 | (11,101 | ) | 19,232 | 27,496 | (12,545 | ) | 14,951 | 31,079 | (10,228 | ) | 20,851 | ||||||||||||||||||||||||||||||||
Total shareholders’ equity | 848,217 | (264,850 | ) | 583,367 | 859,975 | (257,374 | ) | 602,601 | 850,148 | (264,104 | ) | 586,044 | 635,515 | (166,937 | ) | 468,578 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | 7,159,123 | (264,850 | ) | 6,894,273 | 7,409,669 | (257,374 | ) | 7,152,295 | 7,973,592 | (264,104 | ) | 7,709,488 | 7,443,196 | (166,937 | ) | 7,276,259 | ||||||||||||||||||||||||||||||||
Key Performance Measures | ||||||||||||||||||||||||||||||||||||||||||||||||
Book value per share | $ | 11.37 | $ | (4.60 | ) | $ | 6.77 | $ | 11.59 | $ | (4.48 | ) | $ | 7.11 | $ | 14.78 | $ | (12.58 | ) | $ | 2.20 | $ | 24.48 | $ | (9.08 | ) | $ | 15.40 | ||||||||||||||||||||
Tangible book value per share | 11.26 | (4.65 | ) | 6.61 | 11.47 | (4.53 | ) | 6.94 | 14.44 | (12.75 | ) | 1.69 | 23.78 | (8.98 | ) | 14.80 | ||||||||||||||||||||||||||||||||
Nonperforming assets to total assets (%) | 2.64 | .10 | 2.74 | 1.60 | .06 | 1.66 | 1.73 | .06 | 1.79 | 4.32 | .10 | 4.42 |