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 $6.5 MILLION FOR SECOND QUARTER 2012
· | Net income of $6.5 million, or six cents per share |
· | Balance sheet restructuring includes $6.5 million of securities gains, mostly offset by wholesale funding prepayment charges |
· | Nonperforming assets decline $15.8 million, or 10 percent, from first quarter |
· | Core transaction deposits up $163 million year-to-date, or 11 percent annualized |
BLAIRSVILLE, GA – July 26, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $6.5 million, or six cents per share, for the second quarter of 2012; and $18.0 million, or 21 cents per share, year-to-date. The results for the second quarter and first six months of 2012 reflect strong core transaction deposit growth, increases in fee revenue and lower operating expenses compared with the same periods a year ago.
“Our lower operating expenses reflect ongoing efforts to meaningfully increase operating efficiency, while at the same time remaining focused on improving credit measures,” said Jimmy Tallent, president and chief executive officer. “Our credit measures continue their positive trend, with nonperforming assets down $15.8 million, or 10 percent, from the first quarter. The second quarter marks our fourth profitable quarter following our 2011 capital transaction and the execution of our problem asset disposition plan. Looking forward, we expect profitability to continue from improved efficiency, revenue enhancements and expense reductions while growing and improving our business mix of loans and deposits.”
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Total loans were $4.12 billion at quarter-end, down slightly from the first quarter and down $44 million from a year earlier. “While loans declined slightly in the second quarter they remain up year-to-date. We expect some volatility in balances due to the ongoing sluggish economy. We are prudently growing the portfolio by focusing on full-service relationships with small-to-medium-sized businesses. During the second quarter we added $132 million in new loan commitments, of which $87 million were funded by quarter-end. The majority were commercial loans.”
“Growing quality loan and deposit relationships remains a key focus for 2012,” Tallent commented. “The highly competitive market for quality lending opportunities keeps pressure on loan pricing. At the same time our success attracting core transaction deposits has continued, with balances increasing $12 million in the second quarter and an especially strong $151 million in the first quarter. Annualized, the growth rate is 11 percent.”
The second quarter provision for loan losses was $18 million, up from $11 million a year ago and $15 million in the first quarter. Second quarter net charge-offs were $18.9 million, compared to $16.5 million in the second quarter of 2011 and $15.9 million in the first quarter of 2012.
“Nonperforming assets of $145.8 million were down $15.8 million from the first quarter,” Tallent said. “Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. In the second quarter, the inflow of new nonperforming loans slowed to $29.4 million from $32.4 million in the first quarter. Also, loans past due 30 to 89 days declined from .86 percent of outstanding loans in the first quarter to .65 percent in the second quarter. We expect our overall credit trends to continue to improve during 2012, although not necessarily in a linear fashion.”
Taxable equivalent net interest revenue declined $2.0 million from the first quarter of 2012, and $2.1 million from the second quarter of 2011, to $56.8 million. Said Tallent, “The decrease from the first quarter was primarily due to the lower yield on the securities portfolio, which was significantly impacted by heavy prepayment activity in the mortgage market. This activity accelerated the amortization of bond purchase premiums, suppressing the securities portfolio yield. Further, the yields at which the proceeds were reinvested fell short of those of the bonds they replaced. Consequently, our net interest margin was down 10 basis points from the first quarter, to 3.43 percent. It was up two basis points, however, from the second quarter of 2011.”
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Fee revenue was $12.9 million in the second quarter, compared to $15.4 million in the first quarter and $13.9 million a year ago. The decline in fee revenue from the first quarter of 2012 and second quarter of 2011 was primarily due to nonrecurring revenue items noted below. Service charges and fees were $7.8 million, similar to the first quarter and up $208,000 from the second quarter of 2011. The increase in service charges and fees from a year ago reflects new fees on deposit accounts that became effective in the first quarter of 2012, which more than offset lower overdraft fees.
Fee revenue for the quarter included $6.5 million of securities gains reflecting the sale of $175 million in fixed rate securities. As part of the balance sheet restructuring, $75 million of fixed rate wholesale funding was prepaid, resulting in prepayment charges of $6.2 million. “Overall, the deleveraging of our balance sheet should improve our margin and interest rate sensitivity, while maintaining the level of net interest revenue,” stated Tallent.
Mortgage fee revenue of $2.3 million reflected a $223,000 increase from the first quarter and $1.4 million from a year ago. Comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities. Closed mortgage loans totaled $79.8 million in the second quarter of 2012 compared with $81.7 million in the first quarter and $50.5 million in the second quarter of 2011. Other fee revenue was down $3 million from both the first quarter of 2012 and the fourth quarter of 2011, to $1.6 million. The first quarter of 2012 included $1.1 million in interest on a prior year’s federal tax refund, $728,000 in gains from the sale of low income housing tax credits, and $115,000 in hedge ineffectiveness gains. The second quarter of 2011 included $2.8 million in hedge ineffectiveness gains, in contrast with $180,000 in hedge ineffectiveness losses in the second quarter of 2012.
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Excluding foreclosed property costs, second quarter 2012 operating expenses were $42.5 million compared to $43.1 million for the first quarter and $46.8 million a year ago. Lower staff levels and related costs were the primary drivers of the decrease from both periods, with 93 fewer staff positions compared to the first quarter and 153 fewer from a year ago. Most other expense categories were down as well, reflecting efforts to improve operating efficiency by lowering costs. The decrease in operating expenses from a year ago also reflects a $1.1 million decrease in the FDIC assessment due to a lower assessment rate.
Foreclosed property costs for the second quarter of 2012 were $1.9 million, compared to $3.8 million in the first quarter and $1.9 million a year ago. Second quarter 2012 costs included $1.1 million for maintenance and $739,000 in net losses and write-downs. For the first quarter, foreclosed property costs included $1.6 million in maintenance and $2.2 million in net losses and write-downs. Second quarter 2011 costs included $2.0 million in maintenance and $100,000 in net gains from sales.
As of June 30, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Tier 1 Leverage of 9.1 percent; and Total Risk-Based of 15.9 percent. The Tier 1 Common Risk-Based ratio was 8.7 percent and the tangible equity-to-assets ratio was 8.2 percent.
Conference Call
United will hold a conference call today, Thursday, July 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 97692673. 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 $6.7 billion and operates 27 community banks with 104 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.
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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 2011 Annual Report on Form 10-K under the section entitled “Forward-Looking Statements” and “Risk Factors.” 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 |
Second | ||||||||||||||||||||||||||||||||||||
2012 | 2011 | Quarter | For the Six | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Second | First | Fourth | Third | Second | 2012-2011 | Months Ended | 2012-2011 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 137,001 | $ | 152,896 | ||||||||||||||||||||||
Interest expense | 9,944 | 11,357 | 12,855 | 15,262 | 17,985 | 21,301 | 37,558 | |||||||||||||||||||||||||||||
Net interest revenue | 56,836 | 58,864 | 59,050 | 59,281 | 58,946 | (4 | ) % | 115,700 | 115,338 | - | % | |||||||||||||||||||||||||
Provision for loan losses | 18,000 | 15,000 | 14,000 | 36,000 | 11,000 | 33,000 | 201,000 | |||||||||||||||||||||||||||||
Fee revenue | 12,867 | 15,379 | 12,667 | 11,498 | 13,905 | (7 | ) | 28,246 | 25,743 | 10 | ||||||||||||||||||||||||||
Total revenue | 51,703 | 59,243 | 57,717 | 34,779 | 61,851 | 110,946 | (59,919 | ) | ||||||||||||||||||||||||||||
Operating expenses | 44,310 | 46,955 | 51,080 | 46,520 | 48,728 | (9 | ) | 91,265 | 163,999 | (44 | ) | |||||||||||||||||||||||||
Income (loss) before income taxes | 7,393 | 12,288 | 6,637 | (11,741 | ) | 13,123 | 19,681 | (223,918 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) | 894 | 760 | (3,264 | ) | (402 | ) | 1,095 | 1,654 | 1,390 | |||||||||||||||||||||||||||
Net income (loss) | 6,499 | 11,528 | 9,901 | (11,339 | ) | 12,028 | (46 | ) | 18,027 | (225,308 | ) | |||||||||||||||||||||||||
Preferred dividends and discount accretion | 3,032 | 3,030 | 3,025 | 3,019 | 3,016 | 6,062 | 5,794 | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 3,467 | $ | 8,498 | $ | 6,876 | $ | (14,358 | ) | $ | 9,012 | (62 | ) | $ | 11,965 | $ | (231,102 | ) | ||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted income (loss) | $ | .06 | $ | .15 | $ | .12 | $ | (.25 | ) | $ | .16 | (63 | ) | $ | .21 | $ | (10.52 | ) | ||||||||||||||||||
Book value | 6.61 | 6.68 | 6.62 | 6.77 | 7.11 | (7 | ) | 6.61 | 7.11 | (7 | ) | |||||||||||||||||||||||||
Tangible book value (2) | 6.48 | 6.54 | 6.47 | 6.61 | 6.94 | (7 | ) | 6.48 | 6.94 | (7 | ) | |||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on equity (1)(3) | 3.51 | % | 8.78 | % | 7.40 | % | (15.06 | ) % | 42.60 | % | 6.12 | % | (345.86 | )% | ||||||||||||||||||||||
Return on assets (3) | .37 | .66 | .56 | (.64 | ) | .66 | .52 | (6.16 | ) | |||||||||||||||||||||||||||
Net interest margin (3) | 3.43 | 3.53 | 3.51 | 3.55 | 3.41 | 3.48 | 3.36 | |||||||||||||||||||||||||||||
Efficiency ratio | 63.84 | 63.31 | 71.23 | 65.73 | 66.88 | 63.56 | 116.28 | |||||||||||||||||||||||||||||
Equity to assets | 8.33 | 8.19 | 8.28 | 8.55 | 8.06 | 8.26 | 7.11 | |||||||||||||||||||||||||||||
Tangible equity to assets (2) | 8.24 | 8.08 | 8.16 | 8.42 | 7.93 | 8.16 | 7.00 | |||||||||||||||||||||||||||||
Tangible common equity to assets (2) | 5.45 | 5.33 | 5.38 | 5.65 | 1.37 | 5.39 | 2.05 | |||||||||||||||||||||||||||||
Tangible common equity to risk- weighted assets (2) | 8.37 | 8.21 | 8.25 | 8.52 | 8.69 | 8.37 | 8.69 | |||||||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||||||
Non-performing loans | $ | 115,340 | $ | 129,704 | $ | 127,479 | $ | 144,484 | $ | 71,065 | $ | 115,340 | $ | 71,065 | ||||||||||||||||||||||
Foreclosed properties | 30,421 | 31,887 | 32,859 | 44,263 | 47,584 | 30,421 | 47,584 | |||||||||||||||||||||||||||||
Total non-performing assets (NPAs) | 145,761 | 161,591 | 160,338 | 188,747 | 118,649 | 145,761 | 118,649 | |||||||||||||||||||||||||||||
Allowance for loan losses | 112,705 | 113,601 | 114,468 | 146,092 | 127,638 | 112,705 | 127,638 | |||||||||||||||||||||||||||||
Net charge-offs | 18,896 | 15,867 | 45,624 | 17,546 | 16,483 | 34,763 | 248,057 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 2.74 | % | 2.75 | % | 2.79 | % | 3.55 | % | 3.07 | % | 2.74 | % | 3.07 | % | ||||||||||||||||||||||
Net charge-offs to average loans (3) | 1.85 | 1.55 | 4.39 | 1.68 | 1.58 | 1.70 | 11.46 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 3.51 | 3.88 | 3.87 | 4.54 | 2.82 | 3.51 | 2.82 | |||||||||||||||||||||||||||||
NPAs to total assets | 2.16 | 2.25 | 2.30 | 2.74 | 1.66 | 2.16 | 1.66 | |||||||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,156 | $ | 4,168 | $ | 4,175 | $ | 4,194 | $ | 4,266 | (3 | ) | $ | 4,162 | $ | 4,432 | (6 | ) | ||||||||||||||||||
Investment securities | 2,145 | 2,153 | 2,141 | 2,150 | 2,074 | 3 | 2,149 | 1,851 | 16 | |||||||||||||||||||||||||||
Earning assets | 6,665 | 6,700 | 6,688 | 6,630 | 6,924 | (4 | ) | 6,682 | 6,913 | (3 | ) | |||||||||||||||||||||||||
Total assets | 6,993 | 7,045 | 7,019 | 7,000 | 7,363 | (5 | ) | 7,019 | 7,371 | (5 | ) | |||||||||||||||||||||||||
Deposits | 5,853 | 6,028 | 6,115 | 6,061 | 6,372 | (8 | ) | 5,940 | 6,465 | (8 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 583 | 577 | 581 | 598 | 594 | (2 | ) | 580 | 524 | 11 | ||||||||||||||||||||||||||
Common shares - basic (thousands) | 57,840 | 57,764 | 57,646 | 57,599 | 25,427 | 57,803 | 21,965 | |||||||||||||||||||||||||||||
Common shares - diluted (thousands) | 57,840 | 57,764 | 57,646 | 57,599 | 57,543 | 57,803 | 21,965 | |||||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans * | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | (1 | ) | $ | 4,119 | $ | 4,163 | (1 | ) | ||||||||||||||||||
Investment securities | 1,984 | 2,202 | 2,120 | 2,123 | 2,188 | (9 | ) | 1,984 | 2,188 | (9 | ) | |||||||||||||||||||||||||
Total assets | 6,737 | 7,174 | 6,983 | 6,894 | 7,152 | (6 | ) | 6,737 | 7,152 | (6 | ) | |||||||||||||||||||||||||
Deposits | 5,822 | 6,001 | 6,098 | 6,005 | 6,183 | (6 | ) | 5,822 | 6,183 | (6 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 576 | 580 | 575 | 583 | 603 | (4 | ) | 576 | 603 | (4 | ) | |||||||||||||||||||||||||
Common shares outstanding (thousands) | 57,641 | 57,603 | 57,561 | 57,510 | 57,469 | 57,641 | 57,469 |
(1) 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). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. | |
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC. |
UNITED COMMUNITY BANKS, INC. | ||
Non-GAAP Performance Measures Reconciliation | ||
Selected Financial Information |
2012 | 2011 | For the Six Months Ended | ||||||||||||||||||||||||||
(in thousands, except per share | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2012 | 2011 | |||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 76,931 | $ | 137,001 | $ | 152,896 | ||||||||||||||
Taxable equivalent adjustment | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (429 | ) | (890 | ) | (864 | ) | ||||||||||||||
Interest revenue (GAAP) | $ | 66,336 | $ | 69,775 | $ | 71,482 | $ | 74,123 | $ | 76,502 | $ | 136,111 | $ | 152,032 | ||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 56,836 | $ | 58,864 | $ | 59,050 | $ | 59,281 | $ | 58,946 | $ | 115,700 | $ | 115,338 | ||||||||||||||
Taxable equivalent adjustment | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (429 | ) | (890 | ) | (864 | ) | ||||||||||||||
Net interest revenue (GAAP) | $ | 56,392 | $ | 58,418 | $ | 58,627 | $ | 58,861 | $ | 58,517 | $ | 114,810 | $ | 114,474 | ||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||
Total operating revenue | $ | 51,703 | $ | 59,243 | $ | 57,717 | $ | 34,779 | $ | 61,851 | $ | 110,946 | $ | (59,919 | ) | |||||||||||||
Taxable equivalent adjustment | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (429 | ) | (890 | ) | (864 | ) | ||||||||||||||
Total revenue (GAAP) | $ | 51,259 | $ | 58,797 | $ | 57,294 | $ | 34,359 | $ | 61,422 | $ | 110,056 | $ | (60,783 | ) | |||||||||||||
Income (loss) before taxes reconciliation | ||||||||||||||||||||||||||||
Income (loss) before taxes | $ | 7,393 | $ | 12,288 | $ | 6,637 | $ | (11,741 | ) | $ | 13,123 | $ | 19,681 | $ | (223,918 | ) | ||||||||||||
Taxable equivalent adjustment | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (429 | ) | (890 | ) | (864 | ) | ||||||||||||||
Income (loss) before taxes (GAAP) | $ | 6,949 | $ | 11,842 | $ | 6,214 | $ | (12,161 | ) | $ | 12,694 | $ | 18,791 | $ | (224,782 | ) | ||||||||||||
Income tax (benefit) expense reconciliation | ||||||||||||||||||||||||||||
Income tax (benefit) expense | $ | 894 | $ | 760 | $ | (3,264 | ) | $ | (402 | ) | $ | 1,095 | $ | 1,654 | $ | 1,390 | ||||||||||||
Taxable equivalent adjustment | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (429 | ) | (890 | ) | (864 | ) | ||||||||||||||
Income tax (benefit) expense (GAAP) | $ | 450 | $ | 314 | $ | (3,687 | ) | $ | (822 | ) | $ | 666 | $ | 764 | $ | 526 | ||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||
Tangible book value per common share | $ | 6.48 | $ | 6.54 | $ | 6.47 | $ | 6.61 | $ | 6.94 | $ | 6.48 | $ | 6.94 | ||||||||||||||
Effect of goodwill and other intangibles | .13 | .14 | .15 | .16 | .17 | .13 | .17 | |||||||||||||||||||||
Book value per common share (GAAP) | $ | 6.61 | $ | 6.68 | $ | 6.62 | $ | 6.77 | $ | 7.11 | $ | 6.61 | $ | 7.11 | ||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to assets | 5.45 | % | 5.33 | % | 5.38 | % | 5.65 | % | 1.37 | % | 5.39 | % | 2.05 | % | ||||||||||||||
Effect of preferred equity | 2.79 | 2.75 | 2.78 | 2.77 | 6.56 | 2.77 | 4.95 | |||||||||||||||||||||
Tangible equity to assets | 8.24 | 8.08 | 8.16 | 8.42 | 7.93 | 8.16 | 7.00 | |||||||||||||||||||||
Effect of goodwill and other intangibles | .09 | .11 | .12 | .13 | .13 | .10 | .11 | |||||||||||||||||||||
Equity to assets (GAAP) | 8.33 | % | 8.19 | % | 8.28 | % | 8.55 | % | 8.06 | % | 8.26 | % | 7.11 | % | ||||||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 8.37 | % | 8.21 | % | 8.25 | % | 8.52 | % | 8.69 | % | 8.37 | % | 8.69 | % | ||||||||||||||
Effect of other comprehensive income | .28 | .10 | (.03 | ) | (.29 | ) | (.42 | ) | .28 | (.42 | ) | |||||||||||||||||
Effect of trust preferred | 1.19 | 1.15 | 1.18 | 1.19 | 1.15 | 1.19 | 1.15 | |||||||||||||||||||||
Effect of preferred equity | 4.35 | 4.23 | 4.29 | 4.33 | 4.20 | 4.35 | 4.20 | |||||||||||||||||||||
Tier I capital ratio (Regulatory) | 14.19 | % | 13.69 | % | 13.69 | % | 13.75 | % | 13.62 | % | 14.19 | % | 13.62 | % |
UNITED COMMUNITY BANKS, INC. |
Financial Highlights |
Loan Portfolio Composition at Period-End (1) |
2012 | 2011 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||||||||
Second | First | Fourth | Third | Second | ||||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 1,837 | $ | 1,843 | $ | 1,822 | $ | 1,771 | $ | 1,742 | $ | (6 | ) | $ | 95 | |||||||||||||
Commercial & industrial | 450 | 440 | 428 | 429 | 428 | 10 | 22 | |||||||||||||||||||||
Commercial construction | 169 | 167 | 164 | 169 | 195 | 2 | (26 | ) | ||||||||||||||||||||
Total commercial | 2,456 | 2,450 | 2,414 | 2,369 | 2,365 | 6 | 91 | |||||||||||||||||||||
Residential mortgage | 1,128 | 1,131 | 1,135 | 1,150 | 1,177 | (3 | ) | (49 | ) | |||||||||||||||||||
Residential construction | 409 | 436 | 448 | 474 | 502 | (27 | ) | (93 | ) | |||||||||||||||||||
Consumer installment | 126 | 111 | 113 | 117 | 119 | 15 | 7 | |||||||||||||||||||||
Total loans | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | (9 | ) | (44 | ) | ||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
North Georgia | $ | 1,387 | $ | 1,408 | $ | 1,426 | $ | 1,478 | $ | 1,500 | (21 | ) | (113 | ) | ||||||||||||||
Atlanta MSA | 1,252 | 1,239 | 1,220 | 1,192 | 1,188 | 13 | 64 | |||||||||||||||||||||
North Carolina | 576 | 588 | 597 | 607 | 626 | (12 | ) | (50 | ) | |||||||||||||||||||
Coastal Georgia | 369 | 366 | 346 | 316 | 325 | 3 | 44 | |||||||||||||||||||||
Gainesville MSA | 259 | 262 | 265 | 272 | 275 | (3 | ) | (16 | ) | |||||||||||||||||||
East Tennessee | 276 | 265 | 256 | 245 | 249 | 11 | 27 | |||||||||||||||||||||
Total loans | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | $ | 4,163 | (9 | ) | (44 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 78 | $ | 86 | $ | 88 | $ | 97 | $ | 105 | (8 | ) | (27 | ) | ||||||||||||||
Land loans | 45 | 57 | 61 | 60 | 62 | (12 | ) | (17 | ) | |||||||||||||||||||
Lot loans | 203 | 204 | 207 | 216 | 218 | (1 | ) | (15 | ) | |||||||||||||||||||
Total | 326 | 347 | 356 | 373 | 385 | (21 | ) | (59 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 49 | 57 | 59 | 64 | 74 | (8 | ) | (25 | ) | |||||||||||||||||||
Sold | 34 | 32 | 33 | 37 | 43 | 2 | (9 | ) | ||||||||||||||||||||
Total | 83 | 89 | 92 | 101 | 117 | (6 | ) | (34 | ) | |||||||||||||||||||
Total residential construction | $ | 409 | $ | 436 | $ | 448 | $ | 474 | $ | 502 | (27 | ) | (93 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION - ATLANTA MSA | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 14 | $ | 17 | $ | 17 | $ | 19 | $ | 20 | (3 | ) | (6 | ) | ||||||||||||||
Land loans | 9 | 13 | 14 | 15 | 16 | (4 | ) | (7 | ) | |||||||||||||||||||
Lot loans | 22 | 22 | 22 | 22 | 22 | - | - | |||||||||||||||||||||
Total | 45 | 52 | 53 | 56 | 58 | (7 | ) | (13 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 24 | 27 | 27 | 28 | 30 | (3 | ) | (6 | ) | |||||||||||||||||||
Sold | 7 | 7 | 6 | 8 | 9 | - | (2 | ) | ||||||||||||||||||||
Total | 31 | 34 | 33 | 36 | 39 | (3 | ) | (8 | ) | |||||||||||||||||||
Total residential construction | $ | 76 | $ | 86 | $ | 86 | $ | 92 | $ | 97 | (10 | ) | (21 | ) |
(1) Excludes total loans of $41.5 million, $47.2 million, $54.5 million, $57.8 million and $70.8 million as of June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, 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) |
Second Quarter 2012 | First Quarter 2012 | Fourth 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) | $ | 19,115 | $ | 10,586 | $ | 29,701 | $ | 26,081 | $ | 10,808 | $ | 36,889 | $ | 27,322 | $ | 9,745 | $ | 37,067 | ||||||||||||||||||
Commercial & industrial | 34,982 | - | 34,982 | 36,314 | - | 36,314 | 34,613 | - | 34,613 | |||||||||||||||||||||||||||
Commercial construction | 18,175 | 2,732 | 20,907 | 23,319 | 3,266 | 26,585 | 16,655 | 3,336 | 19,991 | |||||||||||||||||||||||||||
Total commercial | 72,272 | 13,318 | 85,590 | 85,714 | 14,074 | 99,788 | 78,590 | 13,081 | 91,671 | |||||||||||||||||||||||||||
Residential mortgage | 16,631 | 5,591 | 22,222 | 18,741 | 5,882 | 24,623 | 22,358 | 6,927 | 29,285 | |||||||||||||||||||||||||||
Residential construction | 25,530 | 11,512 | 37,042 | 24,341 | 11,931 | 36,272 | 25,523 | 12,851 | 38,374 | |||||||||||||||||||||||||||
Consumer installment | 907 | - | 907 | 908 | - | 908 | 1,008 | - | 1,008 | |||||||||||||||||||||||||||
Total NPAs | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | ||||||||||||||||||
Balance as a % of | ||||||||||||||||||||||||||||||||||||
Unpaid Principal | 68.8 | % | 39.3 | % | 59.4 | % | 70.6 | % | 36.1 | % | 59.4 | % | 71.3 | % | 35.9 | % | 59.3 | % | ||||||||||||||||||
NPAs BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 77,332 | $ | 13,546 | $ | 90,878 | $ | 81,117 | $ | 14,559 | $ | 95,676 | $ | 88,600 | $ | 15,136 | $ | 103,736 | ||||||||||||||||||
Atlanta MSA | 17,593 | 8,651 | 26,244 | 22,321 | 7,647 | 29,968 | 14,480 | 6,169 | 20,649 | |||||||||||||||||||||||||||
North Carolina | 10,657 | 3,287 | 13,944 | 15,765 | 4,650 | 20,415 | 15,100 | 5,365 | 20,465 | |||||||||||||||||||||||||||
Coastal Georgia | 5,822 | 785 | 6,607 | 5,622 | 1,268 | 6,890 | 5,248 | 1,620 | 6,868 | |||||||||||||||||||||||||||
Gainesville MSA | 991 | 2,998 | 3,989 | 2,210 | 3,387 | 5,597 | 2,069 | 3,760 | 5,829 | |||||||||||||||||||||||||||
East Tennessee | 2,945 | 1,154 | 4,099 | 2,669 | 376 | 3,045 | 1,982 | 809 | 2,791 | |||||||||||||||||||||||||||
Total NPAs | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | ||||||||||||||||||
NPA ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | $ | 144,484 | $ | 44,263 | $ | 188,747 | ||||||||||||||||||
Loans placed on non-accrual | 29,364 | - | 29,364 | 32,437 | - | 32,437 | 45,675 | - | 45,675 | |||||||||||||||||||||||||||
Payments received | (15,027 | ) | - | (15,027 | ) | (5,945 | ) | - | (5,945 | ) | (1,884 | ) | - | (1,884 | ) | |||||||||||||||||||||
Loan charge-offs | (19,382 | ) | - | (19,382 | ) | (14,733 | ) | - | (14,733 | ) | (44,757 | ) | - | (44,757 | ) | |||||||||||||||||||||
Foreclosures | (9,319 | ) | 9,319 | - | (9,534 | ) | 9,534 | - | (16,039 | ) | 16,039 | - | ||||||||||||||||||||||||
Capitalized costs | - | 415 | 415 | - | 329 | 329 | - | 141 | 141 | |||||||||||||||||||||||||||
Note / property sales | - | (10,461 | ) | (10,461 | ) | - | (8,631 | ) | (8,631 | ) | - | (20,651 | ) | (20,651 | ) | |||||||||||||||||||||
Write downs | - | (1,008 | ) | (1,008 | ) | - | (2,111 | ) | (2,111 | ) | - | (3,893 | ) | (3,893 | ) | |||||||||||||||||||||
Net gains (losses) on sales | - | 269 | 269 | - | (93 | ) | (93 | ) | - | (3,040 | ) | (3,040 | ) | |||||||||||||||||||||||
Ending Balance | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 |
Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | ||||||||||||||||||||||
Net Charge- | Net Charge- | Net Charge- | ||||||||||||||||||||||
Offs to | Offs to | Offs to | ||||||||||||||||||||||
Net | Average | Net | Average | Net | Average | |||||||||||||||||||
(in thousands) | Charge-Offs | Loans (2) | Charge-Offs | Loans (2) | Charge-Offs | Loans (2) | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 4,349 | .95 | % | $ | 3,697 | .81 | % | $ | 4,962 | 1.09 | % | ||||||||||||
Commercial & industrial | 775 | .70 | 669 | .62 | 18,940 | 17.47 | ||||||||||||||||||
Commercial construction | 88 | .21 | 334 | .81 | 3,318 | 7.88 | ||||||||||||||||||
Total commercial | 5,212 | .86 | 4,700 | .78 | 27,220 | 4.51 | ||||||||||||||||||
Residential mortgage | 3,862 | 1.38 | 5,375 | 1.91 | 5,887 | 2.04 | ||||||||||||||||||
Residential construction | 9,563 | 9.14 | 5,314 | 4.84 | 12,090 | 10.36 | ||||||||||||||||||
Consumer installment | 259 | .88 | 478 | 1.72 | 427 | 1.47 | ||||||||||||||||||
Total | $ | 18,896 | 1.85 | $ | 15,867 | 1.55 | $ | 45,624 | 4.39 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
North Georgia | $ | 12,474 | 3.58 | % | $ | 9,022 | 2.56 | % | $ | 34,970 | 9.46 | % | ||||||||||||
Atlanta MSA | 2,307 | .75 | 2,729 | .89 | 4,195 | 1.37 | ||||||||||||||||||
North Carolina | 3,634 | 2.52 | 1,679 | 1.14 | 3,180 | 2.10 | ||||||||||||||||||
Coastal Georgia | 211 | .23 | 1,329 | 1.53 | 335 | .41 | ||||||||||||||||||
Gainesville MSA | (187 | ) | (.29 | ) | 883 | 1.35 | 2,572 | 3.84 | ||||||||||||||||
East Tennessee | 457 | .68 | 225 | .34 | 372 | .59 | ||||||||||||||||||
Total | $ | 18,896 | 1.85 | $ | 15,867 | 1.55 | $ | 45,624 | 4.39 |
(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) Annualized. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||
Consolidated Statement of Operations (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 54,178 | $ | 60,958 | $ | 109,937 | $ | 122,065 | ||||||||
Investment securities, including tax exempt of $262, $251, $512 and $510 | 11,062 | 14,792 | 24,066 | 28,396 | ||||||||||||
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks | 1,096 | 752 | 2,108 | 1,571 | ||||||||||||
Total interest revenue | 66,336 | 76,502 | 136,111 | 152,032 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW | 503 | 1,036 | 1,140 | 2,360 | ||||||||||||
Money market | 661 | 1,499 | 1,302 | 3,527 | ||||||||||||
Savings | 38 | 64 | 75 | 141 | ||||||||||||
Time | 5,073 | 10,995 | 11,232 | 22,727 | ||||||||||||
Total deposit interest expense | 6,275 | 13,594 | 13,749 | 28,755 | ||||||||||||
Federal funds purchased, repurchase agreements and other short-term borrowings | 904 | 1,074 | 1,949 | 2,116 | ||||||||||||
Federal Home Loan Bank advances | 390 | 570 | 856 | 1,160 | ||||||||||||
Long-term debt | 2,375 | 2,747 | 4,747 | 5,527 | ||||||||||||
Total interest expense | 9,944 | 17,985 | 21,301 | 37,558 | ||||||||||||
Net interest revenue | 56,392 | 58,517 | 114,810 | 114,474 | ||||||||||||
Provision for loan losses | 18,000 | 11,000 | 33,000 | 201,000 | ||||||||||||
Net interest revenue after provision for loan losses | 38,392 | 47,517 | 81,810 | (86,526 | ) | |||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 7,816 | 7,608 | 15,599 | 14,328 | ||||||||||||
Mortgage loan and other related fees | 2,322 | 952 | 4,421 | 2,446 | ||||||||||||
Brokerage fees | 809 | 691 | 1,622 | 1,368 | ||||||||||||
Securities gains, net | 6,490 | 783 | 7,047 | 838 | ||||||||||||
Loss from prepayment of debt | (6,199 | ) | (791 | ) | (6,681 | ) | (791 | ) | ||||||||
Other | 1,629 | 4,662 | 6,238 | 7,554 | ||||||||||||
Total fee revenue | 12,867 | 13,905 | 28,246 | 25,743 | ||||||||||||
Total revenue | 51,259 | 61,422 | 110,056 | (60,783 | ) | |||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 24,297 | 26,436 | 49,522 | 51,360 | ||||||||||||
Communications and equipment | 3,211 | 3,378 | 6,366 | 6,722 | ||||||||||||
Occupancy | 3,539 | 3,805 | 7,310 | 7,879 | ||||||||||||
Advertising and public relations | 1,088 | 1,317 | 1,934 | 2,295 | ||||||||||||
Postage, printing and supplies | 916 | 1,085 | 1,895 | 2,203 | ||||||||||||
Professional fees | 1,952 | 2,350 | 3,927 | 5,680 | ||||||||||||
Foreclosed property | 1,851 | 1,891 | 5,676 | 66,790 | ||||||||||||
FDIC assessments and other regulatory charges | 2,545 | 3,644 | 5,055 | 9,057 | ||||||||||||
Amortization of intangibles | 730 | 760 | 1,462 | 1,522 | ||||||||||||
Other | 4,181 | 4,062 | 8,118 | 10,491 | ||||||||||||
Total operating expenses | 44,310 | 48,728 | 91,265 | 163,999 | ||||||||||||
Net income (loss) before income taxes | 6,949 | 12,694 | 18,791 | (224,782 | ) | |||||||||||
Income tax expense | 450 | 666 | 764 | 526 | ||||||||||||
Net income (loss) | 6,499 | 12,028 | 18,027 | (225,308 | ) | |||||||||||
Preferred stock dividends and discount accretion | 3,032 | 3,016 | 6,062 | 5,794 | ||||||||||||
Net income (loss) available to common shareholders | $ | 3,467 | $ | 9,012 | $ | 11,965 | $ | (231,102 | ) | |||||||
Earnings (loss) per common share - Basic | $ | .06 | $ | .35 | $ | .21 | $ | (10.52 | ) | |||||||
Earnings (loss) per common share - Diluted | .06 | .16 | .21 | (10.52 | ) | |||||||||||
Weighted average common shares outstanding - Basic | 57,840 | 25,427 | 57,803 | 21,965 | ||||||||||||
Weighted average common shares outstanding - Diluted | 57,840 | 57,543 | 57,803 | 21,965 |
UNITED COMMUNITY BANKS, INC. | ||||||||||||
Consolidated Balance Sheet | ||||||||||||
June 30, | December 31, | June 30, | ||||||||||
(in thousands, except share and per share data) | 2012 | 2011 | 2011 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 50,596 | $ | 53,807 | $ | 163,331 | ||||||
Interest-bearing deposits in banks | 133,857 | 139,609 | 41,863 | |||||||||
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments | 120,000 | 185,000 | 174,996 | |||||||||
Cash and cash equivalents | 304,453 | 378,416 | 380,190 | |||||||||
Securities available for sale | 1,701,583 | 1,790,047 | 1,816,613 | |||||||||
Securities held to maturity (fair value $299,971, $343,531 and $379,231) | 282,750 | 330,203 | 371,578 | |||||||||
Mortgage loans held for sale | 18,645 | 23,881 | 19,406 | |||||||||
Loans, net of unearned income | 4,119,235 | 4,109,614 | 4,163,447 | |||||||||
Less allowance for loan losses | 112,705 | 114,468 | 127,638 | |||||||||
Loans, net | 4,006,530 | 3,995,146 | 4,035,809 | |||||||||
Assets covered by loss sharing agreements with the FDIC | 65,914 | 78,145 | 95,726 | |||||||||
Premises and equipment, net | 172,200 | 175,088 | 178,208 | |||||||||
Bank owned life insurance | 81,265 | 80,599 | 80,134 | |||||||||
Accrued interest receivable | 20,151 | 20,693 | 21,291 | |||||||||
Goodwill and other intangible assets | 6,965 | 8,428 | 9,922 | |||||||||
Foreclosed property | 30,421 | 32,859 | 47,584 | |||||||||
Other assets | 46,229 | 69,915 | 95,834 | |||||||||
Total assets | $ | 6,737,106 | $ | 6,983,420 | $ | 7,152,295 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 1,150,444 | $ | 992,109 | $ | 899,017 | ||||||
NOW | 1,196,507 | 1,509,896 | 1,306,109 | |||||||||
Money market | 1,117,139 | 1,038,778 | 989,600 | |||||||||
Savings | 219,077 | 199,007 | 197,927 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,164,451 | 1,332,394 | 1,508,444 | |||||||||
Greater than $100,000 | 764,343 | 847,152 | 981,154 | |||||||||
Brokered | 210,506 | 178,647 | 300,964 | |||||||||
Total deposits | 5,822,467 | 6,097,983 | 6,183,215 | |||||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 53,656 | 102,577 | 103,666 | |||||||||
Federal Home Loan Bank advances | 125,125 | 40,625 | 40,625 | |||||||||
Long-term debt | 120,265 | 120,225 | 150,186 | |||||||||
Unsettled securities purchases | - | 10,325 | 35,634 | |||||||||
Accrued expenses and other liabilities | 39,598 | 36,199 | 36,368 | |||||||||
Total liabilities | 6,161,111 | 6,407,934 | 6,549,694 | |||||||||
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 | 217 | |||||||||
Series B; $1,000 stated value; 180,000 shares issued and outstanding | 177,814 | 177,092 | 176,392 | |||||||||
Series D; $1,000 stated value; 16,613 shares issued and outstanding | 16,613 | 16,613 | 16,613 | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||||||
41,726,509, 41,647,100 and 41,554,874 shares issued and outstanding | 41,727 | 41,647 | 41,555 | |||||||||
Common stock, non-voting, $1 par value; 30,000,000 shares authorized; | ||||||||||||
15,914,209 shares issued and outstanding | 15,914 | 15,914 | 15,914 | |||||||||
Common stock issuable; 94,657, 93,681 and 83,575 shares | 2,893 | 3,233 | 3,574 | |||||||||
Capital surplus | 1,056,819 | 1,054,940 | 1,052,482 | |||||||||
Accumulated deficit | (718,896 | ) | (730,861 | ) | (723,378 | ) | ||||||
Accumulated other comprehensive (loss) income | (17,106 | ) | (3,309 | ) | 19,232 | |||||||
Total shareholders’ equity | 575,995 | 575,486 | 602,601 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,737,106 | $ | 6,983,420 | $ | 7,152,295 |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||||
For the Three Months Ended June 30, | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
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) | $ | 4,155,619 | $ | 54,296 | 5.25 | % | $ | 4,266,211 | $ | 60,958 | 5.73 | % | ||||||||||||
Taxable securities (3) | 2,121,053 | 10,800 | 2.04 | 2,048,683 | 14,541 | 2.84 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 24,242 | 429 | 7.08 | 25,044 | 411 | 6.56 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 364,099 | 1,255 | 1.38 | 583,832 | 1,021 | .70 | ||||||||||||||||||
Total interest-earning assets | 6,665,013 | 66,780 | 4.03 | 6,923,770 | 76,931 | 4.45 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (115,955 | ) | (139,744 | ) | ||||||||||||||||||||
Cash and due from banks | 51,907 | 119,801 | ||||||||||||||||||||||
Premises and equipment | 173,792 | 178,949 | ||||||||||||||||||||||
Other assets (3) | 218,347 | 280,204 | ||||||||||||||||||||||
Total assets | $ | 6,993,104 | $ | 7,362,980 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,279,686 | 503 | .16 | $ | 1,310,441 | 1,036 | .32 | ||||||||||||||||
Money market | 1,132,548 | 661 | .23 | 979,432 | 1,499 | .61 | ||||||||||||||||||
Savings | 216,175 | 38 | .07 | 195,946 | 64 | .13 | ||||||||||||||||||
Time less than $100,000 | 1,183,845 | 2,520 | .86 | 1,541,909 | 4,990 | 1.30 | ||||||||||||||||||
Time greater than $100,000 | 778,477 | 2,063 | 1.07 | 988,810 | 3,873 | 1.57 | ||||||||||||||||||
Brokered time deposits | 150,449 | 490 | 1.31 | 473,161 | 2,132 | 1.81 | ||||||||||||||||||
Total interest-bearing deposits | 4,741,180 | 6,275 | .53 | 5,489,699 | 13,594 | .99 | ||||||||||||||||||
Federal funds purchased and other borrowings | 97,134 | 904 | 3.74 | 103,156 | 1,074 | 4.18 | ||||||||||||||||||
Federal Home Loan Bank advances | 278,971 | 390 | .56 | 52,735 | 570 | 4.34 | ||||||||||||||||||
Long-term debt | 120,256 | 2,375 | 7.94 | 150,178 | 2,747 | 7.34 | ||||||||||||||||||
Total borrowed funds | 496,361 | 3,669 | 2.97 | 306,069 | 4,391 | 5.75 | ||||||||||||||||||
Total interest-bearing liabilities | 5,237,541 | 9,944 | .76 | 5,795,768 | 17,985 | 1.24 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,112,128 | 882,151 | ||||||||||||||||||||||
Other liabilities | 60,726 | 91,353 | ||||||||||||||||||||||
Total liabilities | 6,410,395 | 6,769,272 | ||||||||||||||||||||||
Shareholders’ equity | 582,709 | 593,708 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,993,104 | $ | 7,362,980 | ||||||||||||||||||||
Net interest revenue | $ | 56,836 | $ | 58,946 | ||||||||||||||||||||
Net interest-rate spread | 3.27 | % | 3.21 | % | ||||||||||||||||||||
Net interest margin (4) | 3.43 | % | 3.41 | % |
(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 $25.7 million in 2012 and $32.2 million in 2011 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 Six Months Ended June 30, | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
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) | $ | 4,162,030 | $ | 110,138 | 5.32 | % | $ | 4,431,617 | $ | 122,028 | 5.55 | % | ||||||||||||
Taxable securities (3) | 2,124,422 | 23,554 | 2.22 | 1,825,322 | 27,886 | 3.06 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 24,840 | 839 | 6.76 | 25,434 | 835 | 6.57 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 371,044 | 2,470 | 1.33 | 630,384 | 2,147 | .68 | ||||||||||||||||||
Total interest-earning assets | 6,682,336 | 137,001 | 4.12 | 6,912,757 | 152,896 | 4.45 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (116,879 | ) | (154,347 | ) | ||||||||||||||||||||
Cash and due from banks | 53,286 | 127,031 | ||||||||||||||||||||||
Premises and equipment | 174,321 | 179,150 | ||||||||||||||||||||||
Other assets (3) | 226,013 | 306,495 | ||||||||||||||||||||||
Total assets | $ | 7,019,077 | $ | 7,371,086 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,368,900 | 1,140 | .17 | $ | 1,341,618 | 2,360 | .35 | ||||||||||||||||
Money market | 1,101,103 | 1,302 | .24 | 954,128 | 3,527 | .75 | ||||||||||||||||||
Savings | 210,789 | 75 | .07 | 191,708 | 141 | .15 | ||||||||||||||||||
Time less than $100,000 | 1,227,599 | 5,546 | .91 | 1,541,130 | 10,441 | 1.37 | ||||||||||||||||||
Time greater than $100,000 | 799,821 | 4,478 | 1.13 | 989,840 | 8,024 | 1.63 | ||||||||||||||||||
Brokered time deposits | 155,892 | 1,208 | 1.56 | 585,103 | 4,262 | 1.47 | ||||||||||||||||||
Total interest-bearing deposits | 4,864,104 | 13,749 | .57 | 5,603,527 | 28,755 | 1.03 | ||||||||||||||||||
Federal funds purchased and other borrowings | 99,696 | 1,949 | 3.93 | 102,132 | 2,116 | 4.18 | ||||||||||||||||||
Federal Home Loan Bank advances | 208,672 | 856 | .82 | 53,923 | 1,160 | 4.34 | ||||||||||||||||||
Long-term debt | 120,246 | 4,747 | 7.94 | 150,169 | 5,527 | 7.42 | ||||||||||||||||||
Total borrowed funds | 428,614 | 7,552 | 3.54 | 306,224 | 8,803 | 5.80 | ||||||||||||||||||
Total interest-bearing liabilities | 5,292,718 | 21,301 | .81 | 5,909,751 | 37,558 | 1.28 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,076,358 | 861,864 | ||||||||||||||||||||||
Other liabilities | 70,330 | 75,083 | ||||||||||||||||||||||
Total liabilities | 6,439,406 | 6,846,698 | ||||||||||||||||||||||
Shareholders' equity | 579,671 | 524,388 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,019,077 | $ | 7,371,086 | ||||||||||||||||||||
Net interest revenue | $ | 115,700 | $ | 115,338 | ||||||||||||||||||||
Net interest-rate spread | 3.31 | % | 3.17 | % | ||||||||||||||||||||
Net interest margin (4) | 3.48 | % | 3.36 | % |
(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 $24.7 million in 2012 and $29.7 million in 2011 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. |