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 $10.6 MILLION FOR THIRD QUARTER 2012
● | Net income of $10.6 million, or 13 cents per share |
● | Loans up $18.6 million from second quarter, and $28 million from a year ago |
● | Core transaction deposits up $72 million in third quarter, or 9 percent annualized |
● | Nonperforming assets decline $3.8 million, or 3 percent, from second quarter |
● | Capital position sound |
BLAIRSVILLE, GA – October 25, 2012 – United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $10.6 million, or 13 cents per share, for the third quarter of 2012; and net income of $28.6 million, or 34 cents per share, year-to-date. The results for the third quarter and first nine months of 2012 reflect modest loan growth, strong core transaction deposit growth, increases in fee revenue and lower operating expenses compared with the same periods a year ago.
“United Community Banks is capitalizing on business opportunities, strengthening its financial foundation and building long-term value for customers, employees and shareholders,” said Jimmy Tallent, president and chief executive officer. “Our third quarter was successful by nearly every measure, and represents the fifth profitable quarter since our 2011 capital transaction and problem asset disposition plan execution.”
1
Tallent continued, “We achieved both positive linked-quarter and year-over-year loan growth. Our credit measures continue their positive trend, with nonperforming assets down $3.8 million, or 3 percent, from the second quarter. At the same time we reduced expenses and improved operating efficiency. We expect profitability to continue from improved efficiency and further expense reductions, as well as revenue enhancements from prudent growth of our business mix of loans and deposits. We are gaining momentum and achieving success.”
Tallent said, “Continued expansion of quality loan and deposit relationships remains a top priority. Total loans were $4.138 billion at quarter-end, up $18.6 million from the second quarter and up $28 million from a year earlier, reflecting the first annual loan growth in over four years. We are strategically growing the portfolio by focusing on full-service relationships with small-to-medium-sized businesses. During the third quarter we added $218 million in new loan commitments, of which $137 million were funded by quarter-end. We also grew core transaction deposits by $72 million, contributing to an especially strong $236 million total in the first nine months. Annualized, the linked-quarter growth rate is 9 percent and year-to-date is 11 percent.”
The third quarter provision for loan losses was $15.5 million, down from $36 million a year ago and $18 million in the second quarter. The third quarter 2011 provision for loan losses included $25 million specifically related to United’s largest lending relationship. Third quarter net charge-offs were $20.6 million, compared to $18.9 million in the second quarter of 2012 and $17.5 million in the third quarter of 2011. Tallent added, “Net charge-offs of $20.6 million this quarter included losses from the sale of $13 million in performing classified loans that had $3.6 million in specific reserves at the end of the second quarter. The losses on the sold loans account for most of the difference between our provision for loan losses and charge-offs this quarter.”
“Overall credit trends continued to improve this quarter with the exception of a slight increase in net charge-offs,” Tallent said. “Most notably our performing classified loans, which are defined as accruing substandard for regulatory purposes, decreased $41.1 million in the third quarter, or 13 percent, to $282.5 million at quarter-end. Nonperforming assets were $142 million in the third quarter, down $3.8 million from the second quarter. Nonperforming asset levels are impacted positively or negatively by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. In the third quarter, the inflow of new nonperforming loans was $30.5 million compared with $29.4 million in the second quarter and $103 million a year ago. Also, loans past due 30 to 89 days increased slightly from .65 percent of outstanding loans in the second quarter to .68 percent in the third quarter.”
2
Taxable equivalent net interest revenue totaled $57.4 million, up $535,000 from the second quarter of 2012 but down $1.91 million from the third quarter of 2011. “The decrease from last year primarily reflects lower yields on both our investment securities and loan portfolios,” stated Tallent. “Our investment securities interest decline was due to reinvestment at record low rates, combined with $179 million in lower average balances for the quarter. We continue to look for reinvestment opportunities with a focus on floating-rate securities to alleviate market and duration risk. Floating-rate securities now account for 39 percent of the total investment securities portfolio. The lower yield on our loan portfolio reflects ongoing pricing pressure on new and reviewed loans.”
Taxable equivalent net interest margin of 3.60 percent was up 17 basis points from last quarter and 5 basis points from a year ago. The increase in the third quarter was primarily due to our second quarter balance sheet restructuring and the resulting smaller balance sheet.
Fee revenue was $13.8 million for the third quarter, compared to $12.9 million for the second quarter and $11.5 million a year ago. The increase from prior quarters was primarily due to the higher level of mortgage loans closed and related mortgage fees. Mortgage refinancing activity continued to accelerate through the third quarter as mortgage rates fell to record low levels. Closed mortgage loans totaled $108 million in the third quarter of 2012 compared with $79.8 million in the second quarter and $57.4 million in the third quarter of 2011. Service charges and fees on deposit accounts were also up from a year ago due to new fees on low balance deposit accounts that became effective in the first quarter of 2012, more than offsetting lower overdraft fees.
3
Other fee revenue of $2.56 million was up $930,000 from the second quarter of 2012 and $579,000 from the third quarter of 2011, primarily related to fees on our new customer derivatives product and non-core items. In the third quarter of 2012, United earned $278,000 in net fees on customer derivative transactions through its recently initiated back-to-back swap program on fixed rate commercial loans. The non-core other fee revenue items in the third quarter included $608,000 in hedge ineffectiveness gains, compared with $180,000 in hedge ineffectiveness losses in the second quarter of 2012 and $575,000 in hedge ineffectiveness gains in the third quarter of 2011. Another non-core item relates to net gains or losses on United’s deferred compensation plan assets. In the third quarter of 2012, United had $153,000 in gains on deferred compensation plan assets compared with $386,000 in losses a year ago and $8,000 in losses in the second quarter of 2012. Gains and losses on deferred compensation plan assets included in fee revenue are directly offset by losses or gains on United’s deferred compensation plan liabilities that increase or decrease salaries and employee benefit costs each quarter.
Operating expenses, excluding foreclosed property costs, were $41.1 million for the third quarter of 2012 compared to $42.5 million for the second quarter and $43.7 million a year ago. Reduced staff levels and related costs were the primary drivers of the decrease from both periods, with 22 fewer staff positions compared to the second quarter and 170 fewer from a year ago. Most other expense categories were down as well, reflecting efforts to improve operating efficiency.
Foreclosed property costs for the third quarter of 2012 were $3.7 million, compared to $1.9 million in the second quarter and $2.8 million a year ago. Third quarter 2012 costs included $962,000 for maintenance and $2.7 million in net losses and write-downs. For the second quarter, foreclosed property costs included $1.1 million in maintenance and $739,000 in net losses and write-downs. Third quarter 2011 costs included $1.8 million in maintenance and $968,000 in net losses and write-downs. The rise this quarter in net losses and write-downs was due primarily to re-appraisals of properties held for sale.
As of September 30, 2012, capital ratios were as follows: Tier 1 Risk-Based of 14.3 percent; Tier 1 Leverage of 9.8 percent; and Total Risk-Based of 15.8 percent. The Tier 1 Common Risk-Based ratio was 8.8 percent and the tangible equity-to-assets ratio was 8.7 percent.
4
“We have made significant progress on all fronts to position us as the customer service leader in financial services,” Tallent said. “This progress includes successfully recapitalizing the company, aggressively addressing our credit challenges, and rebalancing our loan portfolio for a more favorable risk profile going forward. We have also made significant progress in building on our already strong deposit base and improving operating efficiency.”
Tallent noted the recent addition of Lynn Harton, who brings to United 29 years of executive banking experience, as chief operating officer. “Lynn has earned a high level of respect in our industry and we are delighted to have him on board,” Tallent said. “We also strengthened our board of directors earlier this year with the addition of two experienced business, risk management and capital markets professionals. With this added depth and expertise, coupled with our exceptional bankers and their documented outstanding level of customer service, we are well positioned with the right people, strategies, products, and business model to be the financial services leader in our markets.”
Conference Call
United will hold a conference call today, Thursday, October 25, 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 36390832. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of 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 website at www.ucbi.com.
5
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 sections 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.
# # #
6
UNITED COMMUNITY BANKS, INC. |
Financial Highlights |
Selected Financial Information |
Third | ||||||||||||||||||||||||||||||||||||
2012 | 2011 | Quarter | For the Nine | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Third | Second | First | Fourth | Third | 2012-2011 | Months Ended | 2012-2011 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 65,978 | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 202,979 | $ | 227,439 | ||||||||||||||||||||||
Interest expense | 8,607 | 9,944 | 11,357 | 12,855 | 15,262 | 29,908 | 52,820 | |||||||||||||||||||||||||||||
Net interest revenue | 57,371 | 56,836 | 58,864 | 59,050 | 59,281 | (3 | )% | 173,071 | 174,619 | (1 | )% | |||||||||||||||||||||||||
Provision for loan losses | 15,500 | 18,000 | 15,000 | 14,000 | 36,000 | 48,500 | 237,000 | |||||||||||||||||||||||||||||
Fee revenue | 13,764 | 12,867 | 15,379 | 12,667 | 11,498 | 20 | 42,010 | 37,241 | 13 | |||||||||||||||||||||||||||
Total revenue | 55,635 | 51,703 | 59,243 | 57,717 | 34,779 | 166,581 | (25,140 | ) | ||||||||||||||||||||||||||||
Operating expenses | 44,783 | 44,310 | 46,955 | 51,080 | 46,520 | (4 | ) | 136,048 | 210,519 | (35 | ) | |||||||||||||||||||||||||
Income (loss) before income taxes | 10,852 | 7,393 | 12,288 | 6,637 | (11,741 | ) | 30,533 | (235,659 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) | 284 | 894 | 760 | (3,264 | ) | (402 | ) | 1,938 | 988 | |||||||||||||||||||||||||||
Net income (loss) | 10,568 | 6,499 | 11,528 | 9,901 | (11,339 | ) | 28,595 | (236,647 | ) | |||||||||||||||||||||||||||
Preferred dividends and discount accretion | 3,041 | 3,032 | 3,030 | 3,025 | 3,019 | 9,103 | 8,813 | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 7,527 | $ | 3,467 | $ | 8,498 | $ | 6,876 | $ | (14,358 | ) | $ | 19,492 | $ | (245,460 | ) | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted income (loss) | $ | .13 | $ | .06 | $ | .15 | $ | .12 | $ | (.25 | ) | $ | .34 | $ | (7.23 | ) | ||||||||||||||||||||
Book value | 6.75 | 6.61 | 6.68 | 6.62 | 6.77 | - | 6.75 | 6.77 | - | |||||||||||||||||||||||||||
Tangible book value (2) | 6.64 | 6.48 | 6.54 | 6.47 | 6.61 | - | 6.64 | 6.61 | - | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on equity (1)(3) | 7.43 | % | 3.51 | % | 8.78 | % | 7.40 | % | (15.06 | )% | 6.57 | % | (151.32 | )% | ||||||||||||||||||||||
Return on assets (3) | .63 | .37 | .66 | .56 | (.64 | ) | .53 | (4.37 | ) | |||||||||||||||||||||||||||
Net interest margin (3) | 3.60 | 3.43 | 3.53 | 3.51 | 3.55 | 3.52 | 3.42 | |||||||||||||||||||||||||||||
Efficiency ratio | 62.95 | 63.84 | 63.31 | 71.23 | 65.73 | 63.36 | 99.39 | |||||||||||||||||||||||||||||
Equity to assets | 8.75 | 8.33 | 8.19 | 8.28 | 8.55 | 8.42 | 7.58 | |||||||||||||||||||||||||||||
Tangible equity to assets (2) | 8.66 | 8.24 | 8.08 | 8.16 | 8.42 | 8.32 | 7.47 | |||||||||||||||||||||||||||||
Tangible common equity to assets (2) | 5.73 | 5.45 | 5.33 | 5.38 | 5.65 | 5.50 | 3.23 | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (2) | 8.44 | 8.37 | 8.21 | 8.25 | 8.52 | 8.44 | 8.52 | |||||||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||||||
Non-performing loans | $ | 115,001 | $ | 115,340 | $ | 129,704 | $ | 127,479 | $ | 144,484 | $ | 115,001 | $ | 144,484 | ||||||||||||||||||||||
Foreclosed properties | 26,958 | 30,421 | 31,887 | 32,859 | 44,263 | 26,958 | 44,263 | |||||||||||||||||||||||||||||
Total non-performing assets (NPAs) | 141,959 | 145,761 | 161,591 | 160,338 | 188,747 | 141,959 | 188,747 | |||||||||||||||||||||||||||||
Allowance for loan losses | 107,642 | 112,705 | 113,601 | 114,468 | 146,092 | 107,642 | 146,092 | |||||||||||||||||||||||||||||
Net charge-offs | 20,563 | 18,896 | 15,867 | 45,624 | 17,546 | 55,326 | 265,603 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 2.60 | % | 2.74 | % | 2.75 | % | 2.79 | % | 3.55 | % | 2.60 | % | 3.55 | % | ||||||||||||||||||||||
Net charge-offs to average loans (3) | 1.99 | 1.85 | 1.55 | 4.39 | 1.68 | 1.80 | 8.28 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 3.41 | 3.51 | 3.88 | 3.87 | 4.54 | 3.41 | 4.54 | |||||||||||||||||||||||||||||
NPAs to total assets | 2.12 | 2.16 | 2.25 | 2.30 | 2.74 | 2.12 | 2.74 | |||||||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,147 | $ | 4,156 | $ | 4,168 | $ | 4,175 | $ | 4,194 | (1 | ) | $ | 4,157 | $ | 4,352 | (4 | ) | ||||||||||||||||||
Investment securities | 1,971 | 2,145 | 2,153 | 2,141 | 2,150 | (8 | ) | 2,089 | 1,952 | 7 | ||||||||||||||||||||||||||
Earning assets | 6,346 | 6,665 | 6,700 | 6,688 | 6,630 | (4 | ) | 6,569 | 6,817 | (4 | ) | |||||||||||||||||||||||||
Total assets | 6,648 | 6,993 | 7,045 | 7,019 | 7,000 | (5 | ) | 6,894 | 7,246 | (5 | ) | |||||||||||||||||||||||||
Deposits | 5,789 | 5,853 | 6,028 | 6,115 | 6,061 | (4 | ) | 5,890 | 6,329 | (7 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 582 | 583 | 577 | 581 | 598 | (3 | ) | 580 | 549 | 6 | ||||||||||||||||||||||||||
Common shares - basic (thousands) | 57,880 | 57,840 | 57,764 | 57,646 | 57,599 | 57,826 | 33,973 | |||||||||||||||||||||||||||||
Common shares - diluted (thousands) | 57,880 | 57,840 | 57,764 | 57,646 | 57,599 | 57,826 | 33,973 | |||||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans * | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | 1 | $ | 4,138 | $ | 4,110 | 1 | ||||||||||||||||||||
Investment securities | 2,025 | 1,984 | 2,202 | 2,120 | 2,123 | (5 | ) | 2,025 | 2,123 | (5 | ) | |||||||||||||||||||||||||
Total assets | 6,699 | 6,737 | 7,174 | 6,983 | 6,894 | (3 | ) | 6,699 | 6,894 | (3 | ) | |||||||||||||||||||||||||
Deposits | 5,823 | 5,822 | 6,001 | 6,098 | 6,005 | (3 | ) | 5,823 | 6,005 | (3 | ) | |||||||||||||||||||||||||
Shareholders’ equity | 585 | 576 | 580 | 575 | 583 | - | 585 | 583 | - | |||||||||||||||||||||||||||
Common shares outstanding (thousands) | 57,710 | 57,641 | 57,603 | 57,561 | 57,510 | 57,710 | 57,510 |
(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 Nine Months Ended | ||||||||||||||||||||||||||
(in thousands, except per share | Third | Second | First | Fourth | Third | |||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2012 | 2011 | |||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 65,978 | $ | 66,780 | $ | 70,221 | $ | 71,905 | $ | 74,543 | $ | 202,979 | $ | 227,439 | ||||||||||||||
Taxable equivalent adjustment | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (1,309 | ) | (1,284 | ) | ||||||||||||||
Interest revenue (GAAP) | $ | 65,559 | $ | 66,336 | $ | 69,775 | $ | 71,482 | $ | 74,123 | $ | 201,670 | $ | 226,155 | ||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 57,371 | $ | 56,836 | $ | 58,864 | $ | 59,050 | $ | 59,281 | $ | 173,071 | $ | 174,619 | ||||||||||||||
Taxable equivalent adjustment | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (1,309 | ) | (1,284 | ) | ||||||||||||||
Net interest revenue (GAAP) | $ | 56,952 | $ | 56,392 | $ | 58,418 | $ | 58,627 | $ | 58,861 | $ | 171,762 | $ | 173,335 | ||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||
Total operating revenue | $ | 55,635 | $ | 51,703 | $ | 59,243 | $ | 57,717 | $ | 34,779 | $ | 166,581 | $ | (25,140 | ) | |||||||||||||
Taxable equivalent adjustment | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (1,309 | ) | (1,284 | ) | ||||||||||||||
Total revenue (GAAP) | $ | 55,216 | $ | 51,259 | $ | 58,797 | $ | 57,294 | $ | 34,359 | $ | 165,272 | $ | (26,424 | ) | |||||||||||||
Income (loss) before taxes reconciliation | ||||||||||||||||||||||||||||
Income (loss) before taxes | $ | 10,852 | $ | 7,393 | $ | 12,288 | $ | 6,637 | $ | (11,741 | ) | $ | 30,533 | $ | (235,659 | ) | ||||||||||||
Taxable equivalent adjustment | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (1,309 | ) | (1,284 | ) | ||||||||||||||
Income (loss) before taxes (GAAP) | $ | 10,433 | $ | 6,949 | $ | 11,842 | $ | 6,214 | $ | (12,161 | ) | $ | 29,224 | $ | (236,943 | ) | ||||||||||||
Income tax (benefit) expense reconciliation | ||||||||||||||||||||||||||||
Income tax (benefit) expense | $ | 284 | $ | 894 | $ | 760 | $ | (3,264 | ) | $ | (402 | ) | $ | 1,938 | $ | 988 | ||||||||||||
Taxable equivalent adjustment | (419 | ) | (444 | ) | (446 | ) | (423 | ) | (420 | ) | (1,309 | ) | (1,284 | ) | ||||||||||||||
Income tax (benefit) expense (GAAP) | $ | (135 | ) | $ | 450 | $ | 314 | $ | (3,687 | ) | $ | (822 | ) | $ | 629 | $ | (296 | ) | ||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||
Tangible book value per common share | $ | 6.64 | $ | 6.48 | $ | 6.54 | $ | 6.47 | $ | 6.61 | $ | 6.64 | $ | 6.61 | ||||||||||||||
Effect of goodwill and other intangibles | .11 | .13 | .14 | .15 | .16 | .11 | .16 | |||||||||||||||||||||
Book value per common share (GAAP) | $ | 6.75 | $ | 6.61 | $ | 6.68 | $ | 6.62 | $ | 6.77 | $ | 6.75 | $ | 6.77 | ||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to assets | 5.73 | % | 5.45 | % | 5.33 | % | 5.38 | % | 5.65 | % | 5.50 | % | 3.23 | % | ||||||||||||||
Effect of preferred equity | 2.93 | 2.79 | 2.75 | 2.78 | 2.77 | 2.82 | 4.24 | |||||||||||||||||||||
Tangible equity to assets | 8.66 | 8.24 | 8.08 | 8.16 | 8.42 | 8.32 | 7.47 | |||||||||||||||||||||
Effect of goodwill and other intangibles | .09 | .09 | .11 | .12 | .13 | .10 | .11 | |||||||||||||||||||||
Equity to assets (GAAP) | 8.75 | % | 8.33 | % | 8.19 | % | 8.28 | % | 8.55 | % | 8.42 | % | 7.58 | % | ||||||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 8.44 | % | 8.37 | % | 8.21 | % | 8.25 | % | 8.52 | % | 8.44 | % | 8.52 | % | ||||||||||||||
Effect of other comprehensive income | .36 | .28 | .10 | (.03 | ) | (.29 | ) | .36 | (.29 | ) | ||||||||||||||||||
Effect of trust preferred | 1.17 | 1.19 | 1.15 | 1.18 | 1.19 | 1.17 | 1.19 | |||||||||||||||||||||
Effect of preferred equity | 4.29 | 4.35 | 4.23 | 4.29 | 4.33 | 4.29 | 4.33 | |||||||||||||||||||||
Tier I capital ratio (Regulatory) | 14.26 | % | 14.19 | % | 13.69 | % | 13.69 | % | 13.75 | % | 14.26 | % | 13.75 | % |
UNITED COMMUNITY BANKS, INC. |
Financial Highlights |
Loan Portfolio Composition at Period-End (1) |
2012 | 2011 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||||||||
Third | Second | First | Fourth | Third | ||||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 1,819 | $ | 1,837 | $ | 1,843 | $ | 1,822 | $ | 1,771 | $ | (18 | ) | $ | 48 | |||||||||||||
Commercial & industrial | 460 | 450 | 440 | 428 | 429 | 10 | 31 | |||||||||||||||||||||
Commercial construction | 161 | 169 | 167 | 164 | 169 | (8 | ) | (8 | ) | |||||||||||||||||||
Total commercial | 2,440 | 2,456 | 2,450 | 2,414 | 2,369 | (16 | ) | 71 | ||||||||||||||||||||
Residential mortgage | 1,174 | 1,128 | 1,131 | 1,135 | 1,150 | 46 | 24 | |||||||||||||||||||||
Residential construction | 389 | 409 | 436 | 448 | 474 | (20 | ) | (85 | ) | |||||||||||||||||||
Consumer installment | 135 | 126 | 111 | 113 | 117 | 9 | 18 | |||||||||||||||||||||
Total loans | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | 19 | 28 | ||||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
North Georgia | $ | 1,383 | $ | 1,387 | $ | 1,408 | $ | 1,426 | $ | 1,478 | (4 | ) | (95 | ) | ||||||||||||||
Atlanta MSA | 1,257 | 1,252 | 1,239 | 1,220 | 1,192 | 5 | 65 | |||||||||||||||||||||
North Carolina | 579 | 576 | 588 | 597 | 607 | 3 | (28 | ) | ||||||||||||||||||||
Coastal Georgia | 380 | 369 | 366 | 346 | 316 | 11 | 64 | |||||||||||||||||||||
Gainesville MSA | 256 | 259 | 262 | 265 | 272 | (3 | ) | (16 | ) | |||||||||||||||||||
East Tennessee | 283 | 276 | 265 | 256 | 245 | 7 | 38 | |||||||||||||||||||||
Total loans | $ | 4,138 | $ | 4,119 | $ | 4,128 | $ | 4,110 | $ | 4,110 | 19 | 28 | ||||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 71 | $ | 78 | $ | 86 | $ | 88 | $ | 97 | (7 | ) | (26 | ) | ||||||||||||||
Land loans | 41 | 45 | 57 | 61 | 60 | (4 | ) | (19 | ) | |||||||||||||||||||
Lot loans | 196 | 203 | 204 | 207 | 216 | (7 | ) | (20 | ) | |||||||||||||||||||
Total | 308 | 326 | 347 | 356 | 373 | (18 | ) | (65 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 44 | 49 | 57 | 59 | 64 | (5 | ) | (20 | ) | |||||||||||||||||||
Sold | 37 | 34 | 32 | 33 | 37 | 3 | - | |||||||||||||||||||||
Total | 81 | 83 | 89 | 92 | 101 | (2 | ) | (20 | ) | |||||||||||||||||||
Total residential construction | $ | 389 | $ | 409 | $ | 436 | $ | 448 | $ | 474 | (20 | ) | (85 | ) | ||||||||||||||
RESIDENTIAL CONSTRUCTION - ATLANTA MSA | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 14 | $ | 14 | $ | 17 | $ | 17 | $ | 19 | - | (5 | ) | |||||||||||||||
Land loans | 9 | 9 | 13 | 14 | 15 | - | (6 | ) | ||||||||||||||||||||
Lot loans | 18 | 22 | 22 | 22 | 22 | (4 | ) | (4 | ) | |||||||||||||||||||
Total | 41 | 45 | 52 | 53 | 56 | (4 | ) | (15 | ) | |||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 19 | 24 | 27 | 27 | 28 | (5 | ) | (9 | ) | |||||||||||||||||||
Sold | 8 | 7 | 7 | 6 | 8 | 1 | - | |||||||||||||||||||||
Total | 27 | 31 | 34 | 33 | 36 | (4 | ) | (9 | ) | |||||||||||||||||||
Total residential construction | $ | 68 | $ | 76 | $ | 86 | $ | 86 | $ | 92 | (8 | ) | (24 | ) |
(1) Excludes total loans of $37.0 million, $41.5 million, $47.2 million, $54.5 million and $57.8 million as of September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 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) |
Third Quarter 2012 | Second Quarter 2012 | First Quarter 2012 | ||||||||||||||||||||||||||||||||||
Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | ||||||||||||||||||||||||||||
(in thousands) | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||
NPAs BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Commercial (sec.by RE) | $ | 25,896 | $ | 8,767 | $ | 34,663 | $ | 19,115 | $ | 10,586 | $ | 29,701 | $ | 26,081 | $ | 10,808 | $ | 36,889 | ||||||||||||||||||
Commercial & industrial | 32,678 | - | 32,678 | 34,982 | - | 34,982 | 36,314 | - | 36,314 | |||||||||||||||||||||||||||
Commercial construction | 18,590 | 3,121 | 21,711 | 18,175 | 2,732 | 20,907 | 23,319 | 3,266 | 26,585 | |||||||||||||||||||||||||||
Total commercial | 77,164 | 11,888 | 89,052 | 72,272 | 13,318 | 85,590 | 85,714 | 14,074 | 99,788 | |||||||||||||||||||||||||||
Residential mortgage | 13,996 | 6,031 | 20,027 | 16,631 | 5,591 | 22,222 | 18,741 | 5,882 | 24,623 | |||||||||||||||||||||||||||
Residential construction | 22,935 | 9,039 | 31,974 | 25,530 | 11,512 | 37,042 | 24,341 | 11,931 | 36,272 | |||||||||||||||||||||||||||
Consumer installment | 906 | - | 906 | 907 | - | 907 | 908 | - | 908 | |||||||||||||||||||||||||||
Total NPAs | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | ||||||||||||||||||
Balance as a % of Unpaid Principal | 68.8 | % | 36.4 | % | 58.8 | % | 68.8 | % | 39.3 | % | 59.4 | % | 70.6 | % | 36.1 | % | 59.4 | % | ||||||||||||||||||
NPAs BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 72,211 | $ | 14,582 | $ | 86,793 | $ | 77,332 | $ | 13,546 | $ | 90,878 | $ | 81,117 | $ | 14,559 | $ | 95,676 | ||||||||||||||||||
Atlanta MSA | 21,349 | 5,926 | 27,275 | 17,593 | 8,651 | 26,244 | 22,321 | 7,647 | 29,968 | |||||||||||||||||||||||||||
North Carolina | 9,622 | 2,771 | 12,393 | 10,657 | 3,287 | 13,944 | 15,765 | 4,650 | 20,415 | |||||||||||||||||||||||||||
Coastal Georgia | 6,822 | 864 | 7,686 | 5,822 | 785 | 6,607 | 5,622 | 1,268 | 6,890 | |||||||||||||||||||||||||||
Gainesville MSA | 840 | 1,328 | 2,168 | 991 | 2,998 | 3,989 | 2,210 | 3,387 | 5,597 | |||||||||||||||||||||||||||
East Tennessee | 4,157 | 1,487 | 5,644 | 2,945 | 1,154 | 4,099 | 2,669 | 376 | 3,045 | |||||||||||||||||||||||||||
Total NPAs | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | ||||||||||||||||||
NPA ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | $ | 127,479 | $ | 32,859 | $ | 160,338 | ||||||||||||||||||
Loans placed on non-accrual | 30,535 | - | 30,535 | 29,364 | - | 29,364 | 32,437 | - | 32,437 | |||||||||||||||||||||||||||
Payments received | (3,646 | ) | - | (3,646 | ) | (15,027 | ) | - | (15,027 | ) | (5,945 | ) | - | (5,945 | ) | |||||||||||||||||||||
Loan charge-offs | (19,227 | ) | - | (19,227 | ) | (19,382 | ) | - | (19,382 | ) | (14,733 | ) | - | (14,733 | ) | |||||||||||||||||||||
Foreclosures | (8,001 | ) | 8,001 | - | (9,319 | ) | 9,319 | - | (9,534 | ) | 9,534 | - | ||||||||||||||||||||||||
Capitalized costs | - | 102 | 102 | - | 415 | 415 | - | 329 | 329 | |||||||||||||||||||||||||||
Note / property sales | - | (8,822 | ) | (8,822 | ) | - | (10,461 | ) | (10,461 | ) | - | (8,631 | ) | (8,631 | ) | |||||||||||||||||||||
Write downs | - | (2,394 | ) | (2,394 | ) | - | (1,008 | ) | (1,008 | ) | - | (2,111 | ) | (2,111 | ) | |||||||||||||||||||||
Net gains (losses) on sales | - | (350 | ) | (350 | ) | - | 269 | 269 | - | (93 | ) | (93 | ) | |||||||||||||||||||||||
Ending Balance | $ | 115,001 | $ | 26,958 | $ | 141,959 | $ | 115,340 | $ | 30,421 | $ | 145,761 | $ | 129,704 | $ | 31,887 | $ | 161,591 | ||||||||||||||||||
Third Quarter 2012 | Second Quarter 2012 | First Quarter 2012 | ||||||||||||||||||||||||||||||||||
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) | $ | 8,174 | 1.79 | % | $ | 4,349 | .95 | % | $ | 3,697 | .81 | % | ||||||||||||||||||||||||
Commercial & industrial | (259 | ) | (.23 | ) | 775 | .70 | 669 | .62 | ||||||||||||||||||||||||||||
Commercial construction | 3,190 | 7.74 | 88 | .21 | 334 | .81 | ||||||||||||||||||||||||||||||
Total commercial | 11,105 | 1.81 | 5,212 | .86 | 4,700 | .78 | ||||||||||||||||||||||||||||||
Residential mortgage | 3,527 | 1.23 | 3,862 | 1.38 | 5,375 | 1.91 | ||||||||||||||||||||||||||||||
Residential construction | 5,676 | 5.69 | 9,563 | 9.14 | 5,314 | 4.84 | ||||||||||||||||||||||||||||||
Consumer installment | 255 | .78 | 259 | .88 | 478 | 1.72 | ||||||||||||||||||||||||||||||
Total | $ | 20,563 | 1.99 | $ | 18,896 | 1.85 | $ | 15,867 | 1.55 | |||||||||||||||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 6,451 | 1.84 | % | $ | 12,474 | 3.58 | % | $ | 9,022 | 2.56 | % | ||||||||||||||||||||||||
Atlanta MSA | 9,344 | 3.02 | 2,307 | .75 | 2,729 | .89 | ||||||||||||||||||||||||||||||
North Carolina | 1,674 | 1.15 | 3,634 | 2.52 | 1,679 | 1.14 | ||||||||||||||||||||||||||||||
Coastal Georgia | 2,486 | 2.67 | 211 | .23 | 1,329 | 1.53 | ||||||||||||||||||||||||||||||
Gainesville MSA | 294 | .45 | (187 | ) | (.29 | ) | 883 | 1.35 | ||||||||||||||||||||||||||||
East Tennessee | 314 | .45 | 457 | .68 | 225 | .34 | ||||||||||||||||||||||||||||||
Total | $ | 20,563 | 1.99 | $ | 18,896 | 1.85 | $ | 15,867 | 1.55 |
(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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(in thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 53,868 | $ | 59,294 | $ | 163,805 | $ | 181,359 | ||||||||
Investment securities, including tax exempt of $225, $244, $737 and $754 | 10,706 | 14,568 | 34,772 | 42,964 | ||||||||||||
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks | 985 | 261 | 3,093 | 1,832 | ||||||||||||
Total interest revenue | 65,559 | 74,123 | 201,670 | 226,155 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW | 447 | 831 | 1,587 | 3,191 | ||||||||||||
Money market | 599 | 1,129 | 1,901 | 4,656 | ||||||||||||
Savings | 37 | 52 | 112 | 193 | ||||||||||||
Time | 4,612 | 9,086 | 15,844 | 31,813 | ||||||||||||
Total deposit interest expense | 5,695 | 11,098 | 19,444 | 39,853 | ||||||||||||
Federal funds purchased, repurchase agreements and other short-term borrowings | 514 | 1,081 | 2,463 | 3,197 | ||||||||||||
Federal Home Loan Bank advances | 26 | 441 | 882 | 1,601 | ||||||||||||
Long-term debt | 2,372 | 2,642 | 7,119 | 8,169 | ||||||||||||
Total interest expense | 8,607 | 15,262 | 29,908 | 52,820 | ||||||||||||
Net interest revenue | 56,952 | 58,861 | 171,762 | 173,335 | ||||||||||||
Provision for loan losses | 15,500 | 36,000 | 48,500 | 237,000 | ||||||||||||
Net interest revenue after provision for loan losses | 41,452 | 22,861 | 123,262 | (63,665 | ) | |||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 7,696 | 7,534 | 23,295 | 21,862 | ||||||||||||
Mortgage loan and other related fees | 2,800 | 1,148 | 7,221 | 3,594 | ||||||||||||
Brokerage fees | 709 | 836 | 2,331 | 2,204 | ||||||||||||
Securities gains, net | - | - | 7,047 | 838 | ||||||||||||
Loss from prepayment of debt | - | - | (6,681 | ) | (791 | ) | ||||||||||
Other | 2,559 | 1,980 | 8,797 | 9,534 | ||||||||||||
Total fee revenue | 13,764 | 11,498 | 42,010 | 37,241 | ||||||||||||
Total revenue | 55,216 | 34,359 | 165,272 | (26,424 | ) | |||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 22,918 | 25,262 | 72,440 | 76,622 | ||||||||||||
Communications and equipment | 3,254 | 3,284 | 9,620 | 10,006 | ||||||||||||
Occupancy | 3,539 | 3,794 | 10,849 | 11,673 | ||||||||||||
Advertising and public relations | 934 | 1,052 | 2,868 | 3,347 | ||||||||||||
Postage, printing and supplies | 954 | 1,036 | 2,849 | 3,239 | ||||||||||||
Professional fees | 2,180 | 2,051 | 6,107 | 7,731 | ||||||||||||
Foreclosed property | 3,706 | 2,813 | 9,382 | 69,603 | ||||||||||||
FDIC assessments and other regulatory charges | 2,537 | 2,603 | 7,592 | 11,660 | ||||||||||||
Amortization of intangibles | 728 | 748 | 2,190 | 2,270 | ||||||||||||
Other | 4,033 | 3,877 | 12,151 | 14,368 | ||||||||||||
Total operating expenses | 44,783 | 46,520 | 136,048 | 210,519 | ||||||||||||
Net income (loss) before income taxes | 10,433 | (12,161 | ) | 29,224 | (236,943 | ) | ||||||||||
Income tax (benefit) expense | (135 | ) | (822 | ) | 629 | (296 | ) | |||||||||
Net income (loss) | 10,568 | (11,339 | ) | 28,595 | (236,647 | ) | ||||||||||
Preferred stock dividends and discount accretion | 3,041 | 3,019 | 9,103 | 8,813 | ||||||||||||
Net income (loss) available to common shareholders | $ | 7,527 | $ | (14,358 | ) | $ | 19,492 | $ | (245,460 | ) | ||||||
Earnings (loss) per common share - Basic | $ | .13 | $ | (.25 | ) | $ | .34 | $ | (7.23 | ) | ||||||
Earnings (loss) per common share - Diluted | .13 | (.25 | ) | .34 | (7.23 | ) | ||||||||||
Weighted average common shares outstanding - Basic | 57,880 | 57,599 | 57,826 | 33,973 | ||||||||||||
Weighted average common shares outstanding - Diluted | 57,880 | 57,599 | 57,826 | 33,973 |
UNITED COMMUNITY BANKS, INC. | ||||||
Consolidated Balance Sheet |
September 30, | December 31, | September 30, | ||||||||||
(in thousands, except share and per share data) | 2012 | 2011 | 2011 | |||||||||
(unaudited) | (audited) | (unaudited) | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 57,270 | $ | 53,807 | $ | 57,780 | ||||||
Interest-bearing deposits in banks | 119,355 | 139,609 | 241,440 | |||||||||
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments | 45,000 | 185,000 | - | |||||||||
Cash and cash equivalents | 221,625 | 378,416 | 299,220 | |||||||||
Securities available for sale | 1,761,994 | 1,790,047 | 1,769,083 | |||||||||
Securities held to maturity (fair value $281,336, $343,531 and $369,020) | 262,648 | 330,203 | 353,739 | |||||||||
Mortgage loans held for sale | 30,571 | 23,881 | 22,050 | |||||||||
Loans, net of unearned income | 4,137,845 | 4,109,614 | 4,109,875 | |||||||||
Less allowance for loan losses | 107,642 | 114,468 | 146,092 | |||||||||
Loans, net | 4,030,203 | 3,995,146 | 3,963,783 | |||||||||
Assets covered by loss sharing agreements with the FDIC | 53,070 | 78,145 | 83,623 | |||||||||
Premises and equipment, net | 170,532 | 175,088 | 176,839 | |||||||||
Bank owned life insurance | 81,574 | 80,599 | 80,452 | |||||||||
Accrued interest receivable | 19,133 | 20,693 | 19,744 | |||||||||
Goodwill and other intangible assets | 6,237 | 8,428 | 9,175 | |||||||||
Foreclosed property | 26,958 | 32,859 | 44,263 | |||||||||
Other assets | 34,690 | 69,915 | 72,302 | |||||||||
Total assets | $ | 6,699,235 | $ | 6,983,420 | $ | 6,894,273 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 1,210,703 | $ | 992,109 | $ | 966,452 | ||||||
NOW | 1,184,341 | 1,509,896 | 1,299,512 | |||||||||
Money market | 1,126,312 | 1,038,778 | 1,030,370 | |||||||||
Savings | 222,431 | 199,007 | 200,231 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 1,123,672 | 1,332,394 | 1,393,559 | |||||||||
Greater than $100,000 | 731,766 | 847,152 | 905,183 | |||||||||
Brokered | 223,474 | 178,647 | 209,998 | |||||||||
Total deposits | 5,822,699 | 6,097,983 | 6,005,305 | |||||||||
Federal funds purchased, repurchase agreements, and other short-term borrowings | 53,243 | 102,577 | 102,883 | |||||||||
Federal Home Loan Bank advances | 50,125 | 40,625 | 40,625 | |||||||||
Long-term debt | 120,285 | 120,225 | 120,206 | |||||||||
Unsettled securities purchases | 24,319 | 10,325 | 10,585 | |||||||||
Accrued expenses and other liabilities | 43,309 | 36,199 | 31,302 | |||||||||
Total liabilities | 6,113,980 | 6,407,934 | 6,310,906 | |||||||||
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 | 178,183 | 177,092 | 176,739 | |||||||||
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; | ||||||||||||
42,393,319, 41,647,100 and 41,595,692 shares issued and outstanding | 42,393 | 41,647 | 41,596 | |||||||||
Common stock, non-voting, $1 par value; 30,000,000 shares authorized; | ||||||||||||
15,316,794, 15,914,209 and 15,914,209 shares issued and outstanding | 15,317 | 15,914 | 15,914 | |||||||||
Common stock issuable; 129,270, 93,681 and 88,501 shares | 3,247 | 3,233 | 3,590 | |||||||||
Capital surplus | 1,056,998 | 1,054,940 | 1,053,565 | |||||||||
Accumulated deficit | (711,369 | ) | (730,861 | ) | (737,736 | ) | ||||||
Accumulated other comprehensive (loss) income | (16,344 | ) | (3,309 | ) | 12,869 | |||||||
Total shareholders’ equity | 585,255 | 575,486 | 583,367 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,699,235 | $ | 6,983,420 | $ | 6,894,273 |
UNITED COMMUNITY BANKS, INC. |
Average Consolidated Balance Sheets and Net Interest Analysis |
For the Three Months Ended September 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) | $ | 4,147,220 | $ | 53,963 | 5.18 | % | $ | 4,193,951 | $ | 59,394 | 5.62 | % | ||||||||||||
Taxable securities (3) | 1,947,780 | 10,481 | 2.15 | 2,125,154 | 14,324 | 2.70 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 22,895 | 368 | 6.43 | 24,675 | 399 | 6.47 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 227,950 | 1,166 | 2.05 | 286,194 | 426 | .60 | ||||||||||||||||||
Total interest-earning assets | 6,345,845 | 65,978 | 4.14 | 6,629,974 | 74,543 | 4.47 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (112,034 | ) | (128,654 | ) | ||||||||||||||||||||
Cash and due from banks | 51,705 | 53,500 | ||||||||||||||||||||||
Premises and equipment | 171,608 | 177,798 | ||||||||||||||||||||||
Other assets (3) | 190,439 | 267,349 | ||||||||||||||||||||||
Total assets | $ | 6,647,563 | $ | 6,999,967 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,176,087 | 447 | .15 | $ | 1,258,929 | 831 | .26 | ||||||||||||||||
Money market | 1,157,655 | 599 | .21 | 1,024,559 | 1,129 | .44 | ||||||||||||||||||
Savings | 221,186 | 37 | .07 | 199,793 | 52 | .10 | ||||||||||||||||||
Time less than $100,000 | 1,144,103 | 2,260 | .79 | 1,448,024 | 4,539 | 1.24 | ||||||||||||||||||
Time greater than $100,000 | 750,828 | 1,876 | .99 | 940,864 | 3,456 | 1.46 | ||||||||||||||||||
Brokered time deposits | 176,114 | 476 | 1.08 | 260,423 | 1,091 | 1.66 | ||||||||||||||||||
Total interest-bearing deposits | 4,625,973 | 5,695 | .49 | 5,132,592 | 11,098 | .86 | ||||||||||||||||||
Federal funds purchased and other borrowings | 55,994 | 514 | 3.65 | 103,850 | 1,081 | 4.13 | ||||||||||||||||||
Federal Home Loan Bank advances | 44,473 | 26 | .23 | 40,625 | 441 | 4.31 | ||||||||||||||||||
Long-term debt | 120,276 | 2,372 | 7.85 | 138,457 | 2,642 | 7.57 | ||||||||||||||||||
Total borrowed funds | 220,743 | 2,912 | 5.25 | 282,932 | 4,164 | 5.84 | ||||||||||||||||||
Total interest-bearing liabilities | 4,846,716 | 8,607 | .71 | 5,415,524 | 15,262 | 1.12 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,163,471 | 928,788 | ||||||||||||||||||||||
Other liabilities | 55,607 | 57,427 | ||||||||||||||||||||||
Total liabilities | 6,065,794 | 6,401,739 | ||||||||||||||||||||||
Shareholders’ equity | 581,769 | 598,228 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,647,563 | $ | 6,999,967 | ||||||||||||||||||||
Net interest revenue | $ | 57,371 | $ | 59,281 | ||||||||||||||||||||
Net interest-rate spread | 3.43 | % | 3.35 | % | ||||||||||||||||||||
Net interest margin (4) | 3.60 | % | 3.55 | % |
(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 $22.9 million in 2012 and $37.9 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 Nine Months Ended September 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) | $ | 4,157,057 | $ | 164,101 | 5.27 | % | $ | 4,351,524 | $ | 181,422 | 5.57 | % | ||||||||||||
Taxable securities (3) | 2,065,112 | 34,035 | 2.20 | 1,926,365 | 42,210 | 2.92 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 24,187 | 1,207 | 6.65 | 25,178 | 1,234 | 6.53 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 322,998 | 3,636 | 1.50 | 514,392 | 2,573 | .67 | ||||||||||||||||||
Total interest-earning assets | 6,569,354 | 202,979 | 4.13 | 6,817,459 | 227,439 | 4.46 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (115,252 | ) | (145,689 | ) | ||||||||||||||||||||
Cash and due from banks | 52,755 | 102,251 | ||||||||||||||||||||||
Premises and equipment | 173,410 | 178,694 | ||||||||||||||||||||||
Other assets (3) | 214,068 | 293,386 | ||||||||||||||||||||||
Total assets | $ | 6,894,335 | $ | 7,246,101 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,304,159 | 1,587 | .16 | $ | 1,313,752 | 3,191 | .32 | ||||||||||||||||
Money market | 1,120,091 | 1,901 | .23 | 977,863 | 4,656 | .64 | ||||||||||||||||||
Savings | 214,280 | 112 | .07 | 194,433 | 193 | .13 | ||||||||||||||||||
Time less than $100,000 | 1,199,563 | 7,806 | .87 | 1,509,753 | 14,980 | 1.33 | ||||||||||||||||||
Time greater than $100,000 | 783,370 | 6,354 | 1.08 | 973,335 | 11,480 | 1.58 | ||||||||||||||||||
Brokered time deposits | 162,682 | 1,684 | 1.38 | 475,687 | 5,353 | 1.50 | ||||||||||||||||||
Total interest-bearing deposits | 4,784,145 | 19,444 | .54 | 5,444,823 | 39,853 | .98 | ||||||||||||||||||
Federal funds purchased and other borrowings | 85,022 | 2,463 | 3.87 | 102,711 | 3,197 | 4.16 | ||||||||||||||||||
Federal Home Loan Bank advances | 153,539 | 882 | .77 | 49,442 | 1,601 | 4.33 | ||||||||||||||||||
Long-term debt | 120,256 | 7,119 | 7.91 | 146,221 | 8,169 | 7.47 | ||||||||||||||||||
Total borrowed funds | 358,817 | 10,464 | 3.90 | 298,374 | 12,967 | 5.81 | ||||||||||||||||||
Total interest-bearing liabilities | 5,142,962 | 29,908 | .78 | 5,743,197 | 52,820 | 1.23 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,105,607 | 884,417 | ||||||||||||||||||||||
Other liabilities | 65,390 | 69,131 | ||||||||||||||||||||||
Total liabilities | 6,313,959 | 6,696,745 | ||||||||||||||||||||||
Shareholders’ equity | 580,376 | 549,356 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,894,335 | $ | 7,246,101 | ||||||||||||||||||||
Net interest revenue | $ | 173,071 | $ | 174,619 | ||||||||||||||||||||
Net interest-rate spread | 3.35 | % | 3.23 | % | ||||||||||||||||||||
Net interest margin (4) | 3.52 | % | 3.42 | % |
(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 $24.1 million in 2012 and $32.4 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. |