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 $15.9 MILLION FOR FOURTH QUARTER 2013
- Net income of $15.9 million, or 22 cents per share
- Loans up $62 million, or 6 percent annualized
- Redeemed $180 million of TARP preferred stock
- All capital ratios remain strong
BLAIRSVILLE, GA – January 23, 2014 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported substantial progress in growing the long-term value of its franchise. For the fourth quarter and year ended December 31, 2013, net income was $15.9 million, or 22 cents per share, and $273.1 million, or $4.44 per share, respectively. The year-to-date results include the impact of two significant events during the second quarter – the reversal of the valuation allowance on United’s net deferred tax asset and the higher provision for loan losses and foreclosed property costs from the accelerated sales of classified assets.
“I am very pleased with the important progress we made in the fourth quarter and continue to make as we enter 2014,” said Jimmy Tallent, president and chief executive officer. “We achieved good loan and deposit growth, which allowed us to hold our net interest margin and grow net interest revenue. I’m especially pleased with the termination of the bank and holding company informal memorandums of understanding with the regulators and the redemption of all our outstanding preferred stock that was originally issued to the U.S. Treasury under the Troubled Asset Relief Program (“TARP”) without issuing additional equity. We redeemed $75 million on December 27, 2013 and $105 million on January 10, 2014. These items will have a substantial impact on our future financial performance and our ability to execute our strategic plan.”
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The fourth quarter provision for credit losses was $3.0 million, the same as the third quarter provision but down substantially from the $14.0 million provision in the fourth quarter of 2012. For the year, our provision for credit losses was $65.5 million compared with $62.5 million in 2012. The 2013 provision was elevated by charge-offs associated with the accelerated classified loan sales in the second quarter. The resulting reduction in classified loans led to lower net charge-offs and lower provisions for the third and fourth quarters of 2013. Fourth quarter net charge-offs were $4.44 million compared with $4.47 million in the third quarter and $14.5 million a year ago. Nonperforming assets at year-end were $31.0 million, representing .42 percent of total assets, which is unchanged from third quarter and down from $128.2 million, or 1.88 percent of total assets, a year ago.
Fourth quarter taxable equivalent net interest revenue totaled $55.9 million, up $1.62 million from the third quarter and down $265,000 from the fourth quarter of 2012. The fourth quarter taxable equivalent net interest margin was 3.26 percent, equal to the third quarter and down 19 basis points from a year ago. “We were able to hold our margin at the third quarter level, which allowed our earning assets and deposit growth to increase net interest revenue,” said Tallent. “Competitive loan pricing pressures continue, but we remain sharply focused on growing loans and deposits to offset the impact and grow net interest revenue. We also remain committed to prudent interest rate risk management. To that end, we have been purchasing floating-rate securities, which accounted for 42 percent of our total investment securities portfolio at year-end, up from 39 percent in the third quarter.”
Fourth quarter fee revenue of $13.5 million was down $706,000 from third quarter and $1.13 million from a year ago primarily due to lower mortgage fees. Mortgage fees were down $841,000 from the third quarter and down $1.55 million from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $55.5 million in the fourth quarter compared with $76.6 million in the third quarter and $100.5 million in the fourth quarter of 2012.
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Operating expenses, excluding foreclosed property costs, were $41.4 million for the fourth quarter compared to $39.9 million in the third quarter of 2013 and $46.1 million a year ago. Fourth quarter 2012 operating expenses included a $4.0 million charge to establish a litigation reserve. The remainder of the decrease from a year ago reflects a lower FDIC deposit insurance assessment, lower professional fees and lower intangible amortization charges. The increase from third quarter was mostly in salaries and benefits expense, reflecting higher incentive compensation due to performance targets that were met.
Foreclosed property costs were $191,000 in the fourth quarter compared to $194,000 in the third quarter and $4.61 million a year ago. Foreclosed property costs remain low as the balance of foreclosed properties has stabilized following the accelerated sales of classified assets in the second quarter.
As of December 31, 2013, capital ratios were as follows: Tier 1 Risk-Based of 12.7 percent; Total Risk-Based of 14.0 percent; Tier 1 Common Risk-Based of 9.3 percent; and Tangible Equity-to-Assets of 11.6 percent. The Tier 1 Leverage ratio was 9.1 percent.
Tallent concluded, “The achievements of 2013 are the culmination of several years of hard work, diligence and dedication by our bankers. They have stood their ground during the most difficult economic environment any of us has ever faced, and played an integral role in our return to offense. The coming year will not be without challenges, but we look forward with confidence to the opportunities ahead.”
Conference Call
United will hold a conference call today, Thursday, January 23, 2014, 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 29377597. 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.
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About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.4 billion and operates 102 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and western South Carolina. 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.
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 2012 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 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.
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UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||||||||||||
Fourth | For the Twelve | |||||||||||||||||||||||||||||||||||
2013 | 2012 | Quarter | Months Ended | YTD | ||||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | 2013-2012 | December 31, | 2013-2012 | ||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2013 | 2012 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | $ | 64,450 | $ | 247,323 | $ | 267,667 | ||||||||||||||||||||||
Interest expense | 5,816 | 7,169 | 7,157 | 7,540 | 8,306 | 27,682 | 37,909 | |||||||||||||||||||||||||||||
Net interest revenue | 55,879 | 54,257 | 54,931 | 54,574 | 56,144 | - | % | 219,641 | 229,758 | (4 | )% | |||||||||||||||||||||||||
Provision for credit losses | 3,000 | 3,000 | 48,500 | 11,000 | 14,000 | 65,500 | 62,500 | |||||||||||||||||||||||||||||
Fee revenue | 13,519 | 14,225 | 15,943 | 12,911 | 14,645 | (8 | ) | 56,598 | 56,112 | 1 | ||||||||||||||||||||||||||
Total revenue | 66,398 | 65,482 | 22,374 | 56,485 | 56,789 | 210,739 | 223,370 | |||||||||||||||||||||||||||||
Operating expenses | 41,614 | 40,097 | 48,823 | 43,770 | 50,726 | (18 | ) | 174,304 | 186,774 | (7 | ) | |||||||||||||||||||||||||
Income (loss) before income taxes | 24,784 | 25,385 | (26,449 | ) | 12,715 | 6,063 | 309 | 36,435 | 36,596 | - | ||||||||||||||||||||||||||
Income tax expense (benefit) | 8,873 | 9,885 | (256,413 | ) | 950 | 802 | (236,705 | ) | 2,740 | |||||||||||||||||||||||||||
Net income | 15,911 | 15,500 | 229,964 | 11,765 | 5,261 | 202 | 273,140 | 33,856 | 707 | |||||||||||||||||||||||||||
Preferred dividends and discount accretion | 2,912 | 3,059 | 3,055 | 3,052 | 3,045 | 12,078 | 12,148 | |||||||||||||||||||||||||||||
Net income available to common shareholders | $ | 12,999 | $ | 12,441 | $ | 226,909 | $ | 8,713 | $ | 2,216 | 487 | $ | 261,062 | $ | 21,708 | 1,103 | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted income | $ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | 450 | $ | 4.44 | $ | .38 | 1,068 | ||||||||||||||||||||
Book value | 11.30 | 10.99 | 10.90 | 6.85 | 6.67 | 69 | 11.30 | 6.67 | 69 | |||||||||||||||||||||||||||
Tangible book value (2) | 11.26 | 10.95 | 10.82 | 6.76 | 6.57 | 71 | 11.26 | 6.57 | 71 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on common equity (1)(3) | 7.52 | % | 7.38 | % | 197.22 | % | 8.51 | % | 2.15 | % | 46.72 | % | 5.43 | % | ||||||||||||||||||||||
Return on assets (3) | .86 | .86 | 13.34 | .70 | .31 | 3.86 | .49 | |||||||||||||||||||||||||||||
Net interest margin (3) | 3.26 | 3.26 | 3.33 | 3.37 | 3.45 | 3.30 | 3.51 | |||||||||||||||||||||||||||||
Efficiency ratio | 60.02 | 58.55 | 68.89 | 64.97 | 71.69 | 63.14 | 65.43 | |||||||||||||||||||||||||||||
Equity to assets | 11.62 | 11.80 | 11.57 | (4) | 8.60 | 8.63 | 10.35 | 8.47 | ||||||||||||||||||||||||||||
Tangible equity to assets (2) | 11.59 | 11.76 | 11.53 | (4) | 8.53 | 8.55 | 10.31 | 8.38 | ||||||||||||||||||||||||||||
Tangible common equity to assets (2) | 8.99 | 9.02 | 8.79 | (4) | 5.66 | 5.67 | 7.55 | 5.54 | ||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (2) | 13.17 | 13.34 | 13.16 | 8.45 | 8.26 | 13.17 | 8.26 | |||||||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||||||
Non-performing loans | $ | 26,819 | $ | 26,088 | $ | 27,864 | $ | 96,006 | $ | 109,894 | $ | 26,819 | $ | 109,894 | ||||||||||||||||||||||
Foreclosed properties | 4,221 | 4,467 | 3,936 | 16,734 | 18,264 | 4,221 | 18,264 | |||||||||||||||||||||||||||||
Total non-performing assets (NPAs) | 31,040 | 30,555 | 31,800 | 112,740 | 128,158 | 31,040 | 128,158 | |||||||||||||||||||||||||||||
Allowance for loan losses | 76,762 | 80,372 | 81,845 | 105,753 | 107,137 | 76,762 | 107,137 | |||||||||||||||||||||||||||||
Net charge-offs | 4,445 | 4,473 | 72,408 | 12,384 | 14,505 | 93,710 | 69,831 | |||||||||||||||||||||||||||||
Allowance for loan losses to loans | 1.77 | % | 1.88 | % | 1.95 | % | 2.52 | % | 2.57 | % | 1.77 | % | 2.57 | % | ||||||||||||||||||||||
Net charge-offs to average loans (3) | .41 | .42 | 6.87 | 1.21 | 1.39 | 2.22 | 1.69 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | .72 | .72 | .76 | 2.68 | 3.06 | .72 | 3.06 | |||||||||||||||||||||||||||||
NPAs to total assets | .42 | .42 | .44 | 1.65 | 1.88 | .42 | 1.88 | |||||||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,315 | $ | 4,250 | $ | 4,253 | $ | 4,197 | $ | 4,191 | 3 | $ | 4,254 | $ | 4,166 | 2 | ||||||||||||||||||||
Investment securities | 2,280 | 2,178 | 2,161 | 2,141 | 2,088 | 9 | 2,190 | 2,089 | 5 | |||||||||||||||||||||||||||
Earning assets | 6,823 | 6,615 | 6,608 | 6,547 | 6,482 | 5 | 6,649 | 6,547 | 2 | |||||||||||||||||||||||||||
Total assets | 7,370 | 7,170 | 6,915 | 6,834 | 6,778 | 9 | 7,074 | 6,865 | 3 | |||||||||||||||||||||||||||
Deposits | 6,190 | 5,987 | 5,983 | 5,946 | 5,873 | 5 | 6,027 | 5,885 | 2 | |||||||||||||||||||||||||||
Shareholders’ equity | 856 | 846 | 636 | 588 | 585 | 46 | 732 | 582 | 26 | |||||||||||||||||||||||||||
Common shares - basic (thousands) | 59,923 | 59,100 | 58,141 | 58,081 | 57,971 | 58,787 | 57,857 | |||||||||||||||||||||||||||||
Common shares - diluted (thousands) | 59,925 | 59,202 | 58,141 | 58,081 | 57,971 | 58,845 | 57,857 | |||||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans * | $ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 4 | $ | 4,329 | $ | 4,175 | 4 | ||||||||||||||||||||
Investment securities | 2,312 | 2,169 | 2,152 | 2,141 | 2,079 | 11 | 2,312 | 2,079 | 11 | |||||||||||||||||||||||||||
Total assets | 7,425 | 7,243 | 7,163 | 6,849 | 6,802 | 9 | 7,425 | 6,802 | 9 | |||||||||||||||||||||||||||
Deposits | 6,202 | 6,113 | 6,012 | 6,026 | 5,952 | 4 | 6,202 | 5,952 | 4 | |||||||||||||||||||||||||||
Shareholders’ equity | 796 | 852 | 829 | 592 | 581 | 37 | 796 | 581 | 37 | |||||||||||||||||||||||||||
Common shares outstanding (thousands) | 59,432 | 59,412 | 57,831 | 57,767 | 57,741 | 59,432 | 57,741 |
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end. | |||||||||||||||||||
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
(in thousands, except per share data; | ||||||||||||||||||||
taxable equivalent) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||
Net interest revenue | $ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | $ | 244,834 | ||||||||||
Operating provision for credit losses (1) | 65,500 | 62,500 | 251,000 | 234,750 | 310,000 | |||||||||||||||
Operating fee revenue (2) | 56,598 | 56,112 | 44,907 | 46,963 | 51,357 | |||||||||||||||
Total operating revenue (1)(2) | 210,739 | 223,370 | 32,577 | 56,850 | (13,809 | ) | ||||||||||||||
Operating expenses (3) | 174,304 | 186,774 | 261,599 | 242,952 | 217,050 | |||||||||||||||
Loss on sale of nonperforming assets | - | - | - | 45,349 | - | |||||||||||||||
Operating income (loss) from continuing operations before taxes | 36,435 | 36,596 | (229,022 | ) | (231,451 | ) | (230,859 | ) | ||||||||||||
Operating income taxes | (236,705 | ) | 2,740 | (2,276 | ) | 73,218 | (91,754 | ) | ||||||||||||
Net operating income (loss) from continuing operations | 273,140 | 33,856 | (226,746 | ) | (304,669 | ) | (139,105 | ) | ||||||||||||
Gain from acquisition, net of tax | - | - | - | - | 7,062 | |||||||||||||||
Noncash goodwill impairment charges | - | - | - | (210,590 | ) | (95,000 | ) | |||||||||||||
Severance cost, net of tax benefit | - | - | - | - | (1,797 | ) | ||||||||||||||
Fraud loss provision and subsequent recovery, net of tax benefit | - | - | - | 11,750 | - | |||||||||||||||
Net income (loss) from discontinued operations | - | - | - | (101 | ) | 513 | ||||||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | - | - | - | 1,266 | - | |||||||||||||||
Net income (loss) | 273,140 | 33,856 | (226,746 | ) | (502,344 | ) | (228,327 | ) | ||||||||||||
Preferred dividends and discount accretion | 12,078 | 12,148 | 11,838 | 10,316 | 10,242 | |||||||||||||||
Net income (loss) available to common shareholders | $ | 261,062 | $ | 21,708 | $ | (238,584 | ) | $ | (512,660 | ) | $ | (238,569 | ) | |||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Per common share: | ||||||||||||||||||||
Diluted operating earnings (loss) from continuing operations (1)(2)(3) | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | |||||||
Diluted earnings (loss) from continuing operations | 4.44 | .38 | (5.97 | ) | (27.15 | ) | (19.80 | ) | ||||||||||||
Diluted earnings (loss) | 4.44 | .38 | (5.97 | ) | (27.09 | ) | (19.76 | ) | ||||||||||||
Book value | 11.30 | 6.67 | 6.62 | 15.40 | 41.78 | |||||||||||||||
Tangible book value (5) | 11.26 | 6.57 | 6.47 | 14.80 | 30.09 | |||||||||||||||
Key performance ratios: | ||||||||||||||||||||
Return on common equity (4) | 46.72 | 5.43 | (93.57 | )% | (85.08 | )% | (34.40 | )% | ||||||||||||
Return on assets | 3.86 | .49 | (3.15 | ) | (6.61 | ) | (2.76 | ) | ||||||||||||
Net interest margin | 3.30 | 3.51 | 3.52 | 3.59 | 3.29 | |||||||||||||||
Operating efficiency ratio from continuing operations (2)(3) | 63.14 | 65.43 | 92.27 | 98.98 | 73.97 | |||||||||||||||
Equity to assets | 10.35 | 8.47 | 7.75 | 10.77 | 11.12 | |||||||||||||||
Tangible equity to assets (5) | 10.31 | 8.38 | 7.62 | 8.88 | 8.33 | |||||||||||||||
Tangible common equity to assets (5) | 7.55 | 5.54 | 3.74 | 6.52 | 6.15 | |||||||||||||||
Tangible common equity to risk-weighted assets (5) | 13.17 | 8.26 | 8.25 | 5.64 | 10.39 | |||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||
Non-performing loans | $ | 26,819 | $ | 109,894 | $ | 127,479 | $ | 179,094 | $ | 264,092 | ||||||||||
Foreclosed properties | 4,221 | 18,264 | 32,859 | 142,208 | 120,770 | |||||||||||||||
Total non-performing assets (NPAs) | 31,040 | 128,158 | 160,338 | 321,302 | 384,862 | |||||||||||||||
Allowance for loan losses | 76,762 | 107,137 | 114,468 | 174,695 | 155,602 | |||||||||||||||
Operating net charge-offs (1) | 93,710 | 69,831 | 311,227 | 215,657 | 276,669 | |||||||||||||||
Allowance for loan losses to loans | 1.77 | 2.57 | % | 2.79 | % | 3.79 | % | 3.02 | % | |||||||||||
Operating net charge-offs to average loans (1) | 2.22 | 1.69 | 7.33 | 4.42 | 5.03 | |||||||||||||||
NPAs to loans and foreclosed properties | .72 | 3.06 | 3.87 | 6.77 | 7.30 | |||||||||||||||
NPAs to total assets | .42 | 1.88 | 2.30 | 4.42 | 4.81 | |||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||
Loans | $ | 4,254 | $ | 4,166 | $ | 4,307 | $ | 4,961 | $ | 5,548 | ||||||||||
Investment securities | 2,190 | 2,089 | 1,999 | 1,453 | 1,656 | |||||||||||||||
Earning assets | 6,649 | 6,547 | 6,785 | 6,822 | 7,465 | |||||||||||||||
Total assets | 7,074 | 6,865 | 7,189 | 7,605 | 8,269 | |||||||||||||||
Deposits | 6,027 | 5,885 | 6,275 | 6,373 | 6,713 | |||||||||||||||
Shareholders’ equity | 732 | 582 | 557 | 819 | 920 | |||||||||||||||
Common shares - Basic (thousands) | 58,787 | 57,857 | 39,943 | 18,925 | 12,075 | |||||||||||||||
Common shares - Diluted (thousands) | 58,845 | 57,857 | 39,943 | 18,925 | 12,075 | |||||||||||||||
AT YEAR END ($ in millions) | ||||||||||||||||||||
Loans * | $ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | ||||||||||
Investment securities | 2,312 | 2,079 | 2,120 | 1,490 | 1,530 | |||||||||||||||
Total assets | 7,425 | 6,802 | 6,983 | 7,276 | 8,000 | |||||||||||||||
Deposits | 6,202 | 5,952 | 6,098 | 6,469 | 6,628 | |||||||||||||||
Shareholders’ equity | 796 | 581 | 575 | 469 | 962 | |||||||||||||||
Common shares outstanding (thousands) | 59,432 | 57,741 | 57,561 | 18,937 | 18,809 |
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization. |
* 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 | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||
\ | \ | |||||||||||||||||||||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | $ | 64,450 | $ | 247,323 | $ | 267,667 | $ | 304,308 | $ | 344,493 | $ | 404,961 | ||||||||||||||||||||
Taxable equivalent adjustment | (380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Interest revenue (GAAP) | $ | 61,315 | $ | 61,056 | $ | 61,720 | $ | 61,749 | $ | 64,069 | $ | 245,840 | $ | 265,977 | $ | 302,601 | $ | 342,492 | $ | 402,829 | ||||||||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 55,879 | $ | 54,257 | $ | 54,931 | $ | 54,574 | $ | 56,144 | $ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | $ | 244,834 | ||||||||||||||||||||
Taxable equivalent adjustment | (380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Net interest revenue (GAAP) | $ | 55,499 | $ | 53,887 | $ | 54,563 | $ | 54,209 | $ | 55,763 | $ | 218,158 | $ | 228,068 | $ | 236,963 | $ | 242,636 | $ | 242,702 | ||||||||||||||||||||
Provision for credit losses reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating provision for credit losses | $ | 3,000 | $ | 3,000 | $ | 48,500 | $ | 11,000 | $ | 14,000 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 234,750 | $ | 310,000 | ||||||||||||||||||||
Partial recovery of special fraud-related loan loss | - | - | - | - | - | - | - | - | (11,750 | ) | - | |||||||||||||||||||||||||||||
Provision for credit losses (GAAP) | $ | 3,000 | $ | 3,000 | $ | 48,500 | $ | 11,000 | $ | 14,000 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 223,000 | $ | 310,000 | ||||||||||||||||||||
Fee revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating fee revenue | $ | 13,519 | $ | 14,225 | $ | 15,943 | $ | 12,911 | $ | 14,645 | $ | 56,598 | $ | 56,112 | $ | 44,907 | $ | 46,963 | $ | 51,357 | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | - | - | 11,390 | ||||||||||||||||||||||||||||||
Fee revenue (GAAP) | $ | 13,519 | $ | 14,225 | $ | 15,943 | $ | 12,911 | $ | 14,645 | $ | 56,598 | $ | 56,112 | $ | 44,907 | $ | 46,963 | $ | 62,747 | ||||||||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | 66,398 | $ | 65,482 | $ | 22,374 | $ | 56,485 | $ | 56,789 | $ | 210,739 | $ | 223,370 | $ | 32,577 | $ | 56,850 | $ | (13,809 | ) | |||||||||||||||||||
Taxable equivalent adjustment | (380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | - | - | 11,390 | ||||||||||||||||||||||||||||||
Partial recovery of special fraud-related loan loss | - | - | - | - | - | - | - | - | 11,750 | - | ||||||||||||||||||||||||||||||
Total revenue (GAAP) | $ | 66,018 | $ | 65,112 | $ | 22,006 | $ | 56,120 | $ | 56,408 | $ | 209,256 | $ | 221,680 | $ | 30,870 | $ | 66,599 | $ | (4,551 | ) | |||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating expense | $ | 41,614 | $ | 40,097 | $ | 48,823 | $ | 43,770 | $ | 50,726 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 288,301 | $ | 217,050 | ||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | - | - | 210,590 | 95,000 | ||||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | - | - | 2,898 | ||||||||||||||||||||||||||||||
Operating expense (GAAP) | $ | 41,614 | $ | 40,097 | $ | 48,823 | $ | 43,770 | $ | 50,726 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 498,891 | $ | 314,948 | ||||||||||||||||||||
Income (loss) before taxes reconciliation | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | $ | 24,784 | $ | 25,385 | $ | (26,449 | ) | $ | 12,715 | $ | 6,063 | $ | 36,435 | $ | 36,596 | $ | (229,022 | ) | $ | (231,451 | ) | $ | (230,859 | ) | ||||||||||||||||
Taxable equivalent adjustment | (380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | - | - | 11,390 | ||||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | - | - | (210,590 | ) | (95,000 | ) | ||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | - | - | (2,898 | ) | |||||||||||||||||||||||||||||
Partial recovery of special fraud-related loan loss | - | - | - | - | - | - | - | - | 11,750 | - | ||||||||||||||||||||||||||||||
Income (loss) before taxes (GAAP) | $ | 24,404 | $ | 25,015 | $ | (26,817 | ) | $ | 12,350 | $ | 5,682 | $ | 34,952 | $ | 34,906 | $ | (230,729 | ) | $ | (432,292 | ) | $ | (319,499 | ) | ||||||||||||||||
Income tax expense (benefit) reconciliation | ||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 8,873 | $ | 9,885 | $ | (256,413 | ) | $ | 950 | $ | 802 | $ | (236,705 | ) | $ | 2,740 | $ | (2,276 | ) | $ | 73,218 | $ | (91,754 | ) | ||||||||||||||||
Taxable equivalent adjustment | (380 | ) | (370 | ) | (368 | ) | (365 | ) | (381 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | (2,132 | ) | ||||||||||||||||||||
Gain from acquisition, tax expense | - | - | - | - | - | - | - | - | - | 4,328 | ||||||||||||||||||||||||||||||
Severance costs, tax benefit | - | - | - | - | - | - | - | - | - | (1,101 | ) | |||||||||||||||||||||||||||||
Income tax expense (benefit) (GAAP) | $ | 8,493 | $ | 9,515 | $ | (256,781 | ) | $ | 585 | $ | 421 | $ | (238,188 | ) | $ | 1,050 | $ | (3,983 | ) | $ | 71,217 | $ | (90,659 | ) | ||||||||||||||||
Diluted earnings (loss) from continuing operations per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Diluted operating earnings (loss) from continuing operations per common share | $ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | $ | (12.37 | ) | |||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | - | - | .58 | ||||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | - | - | (11.13 | ) | (7.86 | ) | ||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | - | - | (.15 | ) | |||||||||||||||||||||||||||||
Partial recovery of special fraud-related loan loss | - | - | - | - | - | - | - | - | .62 | - | ||||||||||||||||||||||||||||||
Diluted earnings (loss) from continuing operations per common share (GAAP) | $ | .22 | $ | .21 | $ | 3.90 | $ | .15 | $ | .04 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (27.15 | ) | $ | (19.80 | ) | |||||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible book value per common share | $ | 11.26 | $ | 10.95 | $ | 10.82 | $ | 6.76 | $ | 6.57 | $ | 11.26 | $ | 6.57 | $ | 6.47 | $ | 14.80 | $ | 30.09 | ||||||||||||||||||||
Effect of goodwill and other intangibles | .04 | .04 | .08 | .09 | .10 | .04 | .10 | .15 | .60 | 11.69 | ||||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 11.30 | $ | 10.99 | $ | 10.90 | $ | 6.85 | $ | 6.67 | $ | 11.30 | $ | 6.67 | $ | 6.62 | $ | 15.40 | $ | 41.78 | ||||||||||||||||||||
Efficiency ratio from continuing operations reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio from continuing operations | 60.02 | % | 58.55 | % | 68.89 | % | 64.97 | % | 71.69 | % | 63.14 | % | 65.43 | % | 92.27 | % | 98.98 | % | 73.97 | % | ||||||||||||||||||||
Gain from acquisition | - | - | - | - | - | - | - | - | - | (2.77 | ) | |||||||||||||||||||||||||||||
Noncash goodwill impairment charge | - | - | - | - | - | - | - | - | 72.29 | 31.17 | ||||||||||||||||||||||||||||||
Severance costs | - | - | - | - | - | - | - | - | - | .95 | ||||||||||||||||||||||||||||||
Efficiency ratio from continuing operations (GAAP) | 60.02 | % | 58.55 | % | 68.89 | % | 64.97 | % | 71.69 | % | 63.14 | % | 65.43 | % | 92.27 | % | 171.27 | % | 103.32 | % | ||||||||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible common equity to assets | 8.99 | % | 9.02 | % | 8.79 | % | 5.66 | % | 5.67 | % | 7.55 | % | 5.54 | % | 3.74 | % | 6.52 | % | 6.15 | % | ||||||||||||||||||||
Effect of preferred equity | 2.60 | 2.74 | 2.74 | 2.87 | 2.88 | 2.76 | 2.84 | 3.88 | 2.36 | 2.18 | ||||||||||||||||||||||||||||||
Tangible equity to assets | 11.59 | 11.76 | 11.53 | 8.53 | 8.55 | 10.31 | 8.38 | 7.62 | 8.88 | 8.33 | ||||||||||||||||||||||||||||||
Effect of goodwill and other intangibles | .03 | .04 | .04 | .07 | .08 | .04 | .09 | .13 | 1.89 | 2.79 | ||||||||||||||||||||||||||||||
Equity to assets (GAAP) | 11.62 | % | 11.80 | % | 11.57 | % | 8.60 | % | 8.63 | % | 10.35 | % | 8.47 | % | 7.75 | % | 10.77 | % | 11.12 | % | ||||||||||||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 13.17 | % | 13.34 | % | 13.16 | % | 8.45 | % | 8.26 | % | 13.17 | % | 8.26 | % | 8.25 | % | 5.64 | % | 10.39 | % | ||||||||||||||||||||
Effect of other comprehensive income | .39 | .49 | .29 | .49 | .51 | .39 | .51 | (.03 | ) | (.42 | ) | (.87 | ) | |||||||||||||||||||||||||||
Effect of deferred tax limitation | (4.25 | ) | (4.72 | ) | (4.99 | ) | - | - | (4.25 | ) | - | - | - | (1.27 | ) | |||||||||||||||||||||||||
Effect of trust preferred | 1.04 | 1.09 | 1.11 | 1.15 | 1.15 | 1.04 | 1.15 | 1.18 | 1.06 | .97 | ||||||||||||||||||||||||||||||
Effect of preferred equity | 2.38 | 4.01 | 4.11 | 4.22 | 4.24 | 2.38 | 4.24 | 4.29 | 3.53 | 3.19 | ||||||||||||||||||||||||||||||
Tier I capital ratio (Regulatory) | 12.73 | % | 14.21 | % | 13.68 | % | 14.31 | % | 14.16 | % | 12.73 | % | 14.16 | % | 13.69 | % | 9.81 | % | 12.41 | % | ||||||||||||||||||||
Net charge-offs reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating net charge-offs | $ | 4,445 | $ | 4,473 | $ | 72,408 | $ | 12,384 | $ | 14,505 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 215,657 | $ | 276,669 | ||||||||||||||||||||
Subsequent partial recovery of fraud-related charge-off | - | - | - | - | - | - | - | - | (11,750 | ) | - | |||||||||||||||||||||||||||||
Net charge-offs (GAAP) | $ | 4,445 | $ | 4,473 | $ | 72,408 | $ | 12,384 | $ | 14,505 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 203,907 | $ | 276,669 | ||||||||||||||||||||
Net charge-offs to average loans reconciliation | ||||||||||||||||||||||||||||||||||||||||
Operating net charge-offs to average loans | .41 | % | .42 | % | 6.87 | % | 1.21 | % | 1.39 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.42 | % | 5.03 | % | ||||||||||||||||||||
Subsequent partial recovery of fraud-related charge-off | - | - | - | - | - | - | - | - | (.25 | ) | - | |||||||||||||||||||||||||||||
Net charge-offs to average loans (GAAP) | .41 | % | .42 | % | 6.87 | % | 1.21 | % | 1.39 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.17 | % | 5.03 | % |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||
Financial Highlights | �� | |||||||||||||||||||||||||||
Loan Portfolio Composition at Period-End (1) | ||||||||||||||||||||||||||||
2013 | 2012 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Owner occupied commercial RE | $ | 1,134 | $ | 1,129 | $ | 1,119 | $ | 1,130 | $ | 1,131 | $ | 5 | $ | 3 | ||||||||||||||
Income producing commercial RE | 623 | 614 | 629 | 674 | 682 | 9 | (59 | ) | ||||||||||||||||||||
Commercial & industrial | 472 | 457 | 437 | 454 | 458 | 15 | 14 | |||||||||||||||||||||
Commercial construction | 149 | 137 | 133 | 152 | 155 | 12 | (6 | ) | ||||||||||||||||||||
Total commercial | 2,378 | 2,337 | 2,318 | 2,410 | 2,426 | 41 | (48 | ) | ||||||||||||||||||||
Residential mortgage | 875 | 888 | 876 | 850 | 829 | (13 | ) | 46 | ||||||||||||||||||||
Home equity lines of credit | 441 | 421 | 402 | 396 | 385 | 20 | 56 | |||||||||||||||||||||
Residential construction | 328 | 318 | 332 | 372 | 382 | 10 | (54 | ) | ||||||||||||||||||||
Consumer installment | 307 | 303 | 261 | 166 | 153 | 4 | 154 | |||||||||||||||||||||
Total loans | $ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 62 | 154 | ||||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
North Georgia | $ | 1,240 | $ | 1,262 | $ | 1,265 | $ | 1,363 | $ | 1,364 | (22 | ) | (124 | ) | ||||||||||||||
Atlanta MSA | 1,275 | 1,246 | 1,227 | 1,262 | 1,250 | 29 | 25 | |||||||||||||||||||||
North Carolina | 572 | 575 | 576 | 575 | 579 | (3 | ) | (7 | ) | |||||||||||||||||||
Coastal Georgia | 423 | 421 | 397 | 398 | 400 | 2 | 23 | |||||||||||||||||||||
Gainesville MSA | 255 | 253 | 256 | 259 | 261 | 2 | (6 | ) | ||||||||||||||||||||
East Tennessee | 280 | 277 | 282 | 282 | 283 | 3 | (3 | ) | ||||||||||||||||||||
South Carolina | 88 | 47 | 34 | - | - | 41 | 88 | |||||||||||||||||||||
Other (2) | 196 | 186 | 152 | 55 | 38 | 10 | 158 | |||||||||||||||||||||
Total loans | $ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | $ | 4,175 | 62 | 154 | ||||||||||||||||
RESIDENTIAL CONSTRUCTION | ||||||||||||||||||||||||||||
Dirt loans | ||||||||||||||||||||||||||||
Acquisition & development | $ | 39 | $ | 40 | $ | 42 | $ | 57 | $ | 62 | (1 | ) | (23 | ) | ||||||||||||||
Land loans | 38 | 35 | 36 | 42 | 46 | 3 | (8 | ) | ||||||||||||||||||||
Lot loans | 166 | 167 | 173 | 188 | 193 | (1 | ) | (27 | ) | |||||||||||||||||||
Total | 243 | 242 | 251 | 287 | 301 | 1 | (58 | ) | ||||||||||||||||||||
House loans | ||||||||||||||||||||||||||||
Spec | 23 | 30 | 34 | 40 | 41 | (7 | ) | (18 | ) | |||||||||||||||||||
Sold | 62 | 46 | 47 | 45 | 40 | 16 | 22 | |||||||||||||||||||||
Total | 85 | 76 | 81 | 85 | 81 | 9 | 4 | |||||||||||||||||||||
Total residential construction | $ | 328 | $ | 318 | $ | 332 | $ | 372 | $ | 382 | 10 | (54 | ) |
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Loan Portfolio Composition at Year-End (1) | ||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Owner occupied commercial RE | $ | 1,134 | $ | 1,131 | $ | 1,112 | $ | 980 | $ | 963 | ||||||||||
Income producing commercial RE | 623 | 682 | 710 | 781 | 816 | |||||||||||||||
Commercial & industrial | 472 | 458 | 428 | 441 | 390 | |||||||||||||||
Commercial construction | 149 | 155 | 164 | 297 | 363 | |||||||||||||||
Total commercial | 2,378 | 2,426 | 2,414 | 2,499 | 2,532 | |||||||||||||||
Residential mortgage | 875 | 829 | 835 | 944 | 1,052 | |||||||||||||||
Home equity lines of credit | 441 | 385 | 300 | 335 | 375 | |||||||||||||||
Residential construction | 328 | 382 | 448 | 695 | 1,050 | |||||||||||||||
Consumer / installment | 307 | 153 | 113 | 131 | 142 | |||||||||||||||
Total loans | $ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||
North Georgia | $ | 1,240 | $ | 1,364 | $ | 1,426 | $ | 1,689 | $ | 1,884 | ||||||||||
Atlanta MSA | 1,275 | 1,250 | 1,220 | 1,310 | 1,435 | |||||||||||||||
North Carolina | 572 | 579 | 597 | 702 | 772 | |||||||||||||||
Coastal Georgia | 423 | 400 | 346 | 335 | 405 | |||||||||||||||
Gainesville MSA | 255 | 261 | 265 | 312 | 390 | |||||||||||||||
East Tennessee | 280 | 283 | 256 | 256 | 265 | |||||||||||||||
South Carolina | 88 | - | - | - | - | |||||||||||||||
Other (2) | 196 | 38 | - | - | - | |||||||||||||||
Total loans | $ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | $ | 5,151 |
(1) Excludes total loans of $20.3 million, $33.4 million, $54.5 million, $68.2 million and $85.1 million as of December 31, 2013, 2012, 2011, 2010 and 2009, respectively, that are covered by loss-sharing agreements with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||||||
Credit Quality (1) | ||||||||||||||||||||||||||||||||||||
Fourth Quarter 2013 | Third Quarter 2013 | Second Quarter 2013 | ||||||||||||||||||||||||||||||||||
Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | Non-performing | Foreclosed | Total | ||||||||||||||||||||||||||||
(in thousands) | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||
NONPERFORMING ASSETS BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Owner occupied CRE | $ | 5,822 | $ | 832 | $ | 6,654 | $ | 6,358 | $ | 591 | $ | 6,949 | $ | 5,283 | $ | 547 | $ | 5,830 | ||||||||||||||||||
Income producing CRE | 2,518 | - | 2,518 | 1,657 | 139 | 1,796 | 1,954 | - | 1,954 | |||||||||||||||||||||||||||
Commercial & industrial | 427 | - | 427 | 609 | - | 609 | 548 | - | 548 | |||||||||||||||||||||||||||
Commercial construction | 361 | - | 361 | 343 | 376 | 719 | 504 | 376 | 880 | |||||||||||||||||||||||||||
Total commercial | 9,128 | 832 | 9,960 | 8,967 | 1,106 | 10,073 | 8,289 | 923 | 9,212 | |||||||||||||||||||||||||||
Residential mortgage | 11,730 | 2,684 | 14,414 | 11,335 | 1,679 | 13,014 | 12,847 | 1,303 | 14,150 | |||||||||||||||||||||||||||
Home equity lines of credit | 1,448 | 389 | 1,837 | 1,169 | 475 | 1,644 | 1,491 | 140 | 1,631 | |||||||||||||||||||||||||||
Residential construction | 4,264 | 316 | 4,580 | 4,097 | 1,207 | 5,304 | 4,838 | 1,570 | 6,408 | |||||||||||||||||||||||||||
Consumer installment | 249 | - | 249 | 520 | - | 520 | 399 | - | 399 | |||||||||||||||||||||||||||
Total NPAs | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
Balance as a % of | ||||||||||||||||||||||||||||||||||||
Unpaid Principal | 65.3 | % | 44.5 | % | 61.4 | % | 61.6 | % | 41.5 | % | 57.6 | % | 62.6 | % | 31.6 | % | 55.8 | % | ||||||||||||||||||
NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 12,352 | $ | 2,494 | $ | 14,846 | $ | 13,652 | $ | 1,726 | $ | 15,378 | $ | 12,830 | $ | 1,617 | $ | 14,447 | ||||||||||||||||||
Atlanta MSA | 2,830 | 684 | 3,514 | 3,096 | 1,026 | 4,122 | 3,803 | 1,197 | 5,000 | |||||||||||||||||||||||||||
North Carolina | 6,567 | 683 | 7,250 | 5,680 | 762 | 6,442 | 6,512 | 295 | 6,807 | |||||||||||||||||||||||||||
Coastal Georgia | 2,342 | 173 | 2,515 | 995 | 928 | 1,923 | 2,588 | 627 | 3,215 | |||||||||||||||||||||||||||
Gainesville MSA | 928 | - | 928 | 1,036 | - | 1,036 | 1,008 | - | 1,008 | |||||||||||||||||||||||||||
East Tennessee | 1,800 | 187 | 1,987 | 1,629 | 25 | 1,654 | 1,123 | 200 | 1,323 | |||||||||||||||||||||||||||
South Carolina | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Other (3) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total NPAs | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | $ | 96,006 | $ | 16,734 | $ | 112,740 | ||||||||||||||||||
Loans placed on non-accrual | 11,043 | - | 11,043 | 9,959 | - | 9,959 | 13,200 | - | 13,200 | |||||||||||||||||||||||||||
Payments received | (1,688 | ) | - | (1,688 | ) | (3,601 | ) | - | (3,601 | ) | (47,937 | ) | - | (47,937 | ) | |||||||||||||||||||||
Loan charge-offs | (4,621 | ) | - | (4,621 | ) | (5,395 | ) | - | (5,395 | ) | (23,972 | ) | - | (23,972 | ) | |||||||||||||||||||||
Foreclosures | (4,003 | ) | 4,003 | - | (2,739 | ) | 2,739 | - | (9,433 | ) | 9,433 | - | ||||||||||||||||||||||||
Capitalized costs | - | - | - | - | 7 | 7 | - | 55 | 55 | |||||||||||||||||||||||||||
Property sales | - | (4,684 | ) | (4,684 | ) | - | (2,534 | ) | (2,534 | ) | - | (17,972 | ) | (17,972 | ) | |||||||||||||||||||||
Write downs | - | (326 | ) | (326 | ) | - | (329 | ) | (329 | ) | - | (1,369 | ) | (1,369 | ) | |||||||||||||||||||||
Net gains (losses) on sales | - | 761 | 761 | - | 648 | 648 | - | (2,945 | ) | (2,945 | ) | |||||||||||||||||||||||||
Ending Balance | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | ||||||||||||||||||
Fourth Quarter 2013 | Third Quarter 2013 | Second Quarter 2013 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
Owner occupied CRE | $ | 1,638 | .57 | % | $ | 1,641 | .58 | % | $ | 16,545 | 5.85 | % | ||||||||||||||||||||||||
Income producing CRE | 320 | .21 | 216 | .14 | 8,921 | 5.45 | ||||||||||||||||||||||||||||||
Commercial & industrial | (149 | ) | (.13 | ) | 136 | .12 | 15,576 | 13.91 | ||||||||||||||||||||||||||||
Commercial construction | (9 | ) | (.02 | ) | 133 | .39 | 6,295 | 17.53 | ||||||||||||||||||||||||||||
Total commercial | 1,800 | .30 | 2,126 | .36 | 47,337 | 7.96 | ||||||||||||||||||||||||||||||
Residential mortgage | 1,426 | .64 | 693 | .31 | 5,469 | 2.52 | ||||||||||||||||||||||||||||||
Home equity lines of credit | 417 | .38 | 382 | .37 | 1,040 | 1.04 | ||||||||||||||||||||||||||||||
Residential construction | 327 | .40 | 1,072 | 1.31 | 18,506 | 20.91 | ||||||||||||||||||||||||||||||
Consumer installment | 475 | .62 | 200 | .28 | 56 | .10 | ||||||||||||||||||||||||||||||
Total | $ | 4,445 | .41 | $ | 4,473 | .42 | $ | 72,408 | 6.87 | |||||||||||||||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 1,603 | .51 | % | $ | 2,090 | .66 | % | $ | 59,102 | 17.20 | % | ||||||||||||||||||||||||
Atlanta MSA | 636 | .20 | 1,013 | .33 | 9,986 | 3.21 | ||||||||||||||||||||||||||||||
North Carolina | 1,104 | .76 | 704 | .49 | 1,952 | 1.36 | ||||||||||||||||||||||||||||||
Coastal Georgia | 345 | .33 | 139 | .14 | 480 | .49 | ||||||||||||||||||||||||||||||
Gainesville MSA | 346 | .54 | 97 | .15 | 123 | .19 | ||||||||||||||||||||||||||||||
East Tennessee | 323 | .46 | 359 | .51 | 711 | 1.01 | ||||||||||||||||||||||||||||||
South Carolina | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other (3) | 88 | .20 | 71 | .17 | 54 | .24 | ||||||||||||||||||||||||||||||
Total | $ | 4,445 | .41 | $ | 4,473 | .42 | $ | 72,408 | 6.87 |
(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. |
(3) | Includes purchased indirect auto loans that are not assigned to a geographic region. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||
Consolidated Statement of Income (Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 49,066 | $ | 53,335 | $ | 200,893 | $ | 217,378 | ||||||||
Investment securities, including tax exempt of $203, $219, $827 and $956 | 11,253 | 9,841 | 41,158 | 44,613 | ||||||||||||
Deposits in banks and short-term investments | 996 | 893 | 3,789 | 3,986 | ||||||||||||
Total interest revenue | 61,315 | 64,069 | 245,840 | 265,977 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW | 473 | 462 | 1,759 | 2,049 | ||||||||||||
Money market | 569 | 617 | 2,210 | 2,518 | ||||||||||||
Savings | 24 | 38 | 133 | 150 | ||||||||||||
Time | 1,593 | 3,558 | 10,464 | 19,097 | ||||||||||||
Total deposit interest expense | 2,659 | 4,675 | 14,566 | 23,814 | ||||||||||||
Short-term borrowings | 508 | 524 | 2,071 | 2,987 | ||||||||||||
Federal Home Loan Bank advances | 3 | 25 | 68 | 907 | ||||||||||||
Long-term debt | 2,646 | 3,082 | 10,977 | 10,201 | ||||||||||||
Total interest expense | 5,816 | 8,306 | 27,682 | 37,909 | ||||||||||||
Net interest revenue | 55,499 | 55,763 | 218,158 | 228,068 | ||||||||||||
Provision for credit losses | 3,000 | 14,000 | 65,500 | 62,500 | ||||||||||||
Net interest revenue after provision for loan losses | 52,499 | 41,763 | 152,658 | 165,568 | ||||||||||||
Fee revenue: | ||||||||||||||||
Service charges and fees | 8,166 | 8,375 | 31,997 | 31,670 | ||||||||||||
Mortgage loan and other related fees | 1,713 | 3,262 | 9,925 | 10,483 | ||||||||||||
Brokerage fees | 1,361 | 751 | 4,465 | 3,082 | ||||||||||||
Securities gains, net | 70 | 31 | 186 | 7,078 | ||||||||||||
Loss from prepayment of debt | - | - | - | (6,681 | ) | |||||||||||
Other | 2,209 | 2,226 | 10,025 | 10,480 | ||||||||||||
Total fee revenue | 13,519 | 14,645 | 56,598 | 56,112 | ||||||||||||
Total revenue | 66,018 | 56,408 | 209,256 | 221,680 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and employee benefits | 24,817 | 23,586 | 96,233 | 96,026 | ||||||||||||
Communications and equipment | 3,414 | 3,320 | 13,233 | 12,940 | ||||||||||||
Occupancy | 3,735 | 3,455 | 13,930 | 14,304 | ||||||||||||
Advertising and public relations | 781 | 987 | 3,718 | 3,855 | ||||||||||||
Postage, printing and supplies | 882 | 1,050 | 3,283 | 3,899 | ||||||||||||
Professional fees | 2,102 | 2,685 | 9,617 | 8,792 | ||||||||||||
Foreclosed property | 191 | 4,611 | 7,869 | 13,993 | ||||||||||||
FDIC assessments and other regulatory charges | 1,804 | 2,505 | 9,219 | 10,097 | ||||||||||||
Amortization of intangibles | 408 | 727 | 2,031 | 2,917 | ||||||||||||
Other | 3,480 | 7,800 | 15,171 | 19,951 | ||||||||||||
Total operating expenses | 41,614 | 50,726 | 174,304 | 186,774 | ||||||||||||
Net income before income taxes | 24,404 | 5,682 | 34,952 | 34,906 | ||||||||||||
Income tax expense (benefit) | 8,493 | 421 | (238,188 | ) | 1,050 | |||||||||||
Net income | 15,911 | 5,261 | 273,140 | 33,856 | ||||||||||||
Preferred stock dividends and discount accretion | 2,912 | 3,045 | 12,078 | 12,148 | ||||||||||||
Net income available to common shareholders | $ | 12,999 | $ | 2,216 | $ | 261,062 | $ | 21,708 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | .22 | $ | .04 | $ | 4.44 | $ | .38 | ||||||||
Diluted | .22 | .04 | 4.44 | .38 | ||||||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 59,923 | 57,971 | 58,787 | 57,857 | ||||||||||||
Diluted | 59,925 | 57,971 | 58,845 | 57,857 |
UNITED COMMUNITY BANKS, INC. | ||||||||
Consolidated Balance Sheet | ||||||||
December 31, | December 31, | |||||||
(in thousands, except share and per share data) | 2013 | 2012 | ||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 71,230 | $ | 66,536 | ||||
Interest-bearing deposits in banks | 119,669 | 124,613 | ||||||
Short-term investments | 37,999 | 60,000 | ||||||
Cash and cash equivalents | 228,898 | 251,149 | ||||||
Securities available for sale | 1,832,217 | 1,834,593 | ||||||
Securities held to maturity (fair value $485,585 and $261,131) | 479,742 | 244,184 | ||||||
Mortgage loans held for sale | 10,319 | 28,821 | ||||||
Loans, net of unearned income | 4,329,266 | 4,175,008 | ||||||
Less allowance for loan losses | (76,762 | ) | (107,137 | ) | ||||
Loans, net | 4,252,504 | 4,067,871 | ||||||
Assets covered by loss sharing agreements with the FDIC | 22,882 | 47,467 | ||||||
Premises and equipment, net | 163,589 | 168,920 | ||||||
Bank owned life insurance | 80,670 | 81,867 | ||||||
Accrued interest receivable | 19,598 | 18,659 | ||||||
Intangible assets | 3,480 | 5,510 | ||||||
Foreclosed property | 4,221 | 18,264 | ||||||
Net deferred tax asset | 258,518 | - | ||||||
Other assets | 68,781 | 34,954 | ||||||
Total assets | $ | 7,425,419 | $ | 6,802,259 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand | $ | 1,388,512 | $ | 1,252,605 | ||||
NOW | 1,427,939 | 1,316,453 | ||||||
Money market | 1,227,575 | 1,149,912 | ||||||
Savings | 251,125 | 227,308 | ||||||
Time: | ||||||||
Less than $100,000 | 892,961 | 1,055,271 | ||||||
Greater than $100,000 | 588,689 | 705,558 | ||||||
Brokered | 424,704 | 245,033 | ||||||
Total deposits | 6,201,505 | 5,952,140 | ||||||
Short-term borrowings | 53,241 | 52,574 | ||||||
Federal Home Loan Bank advances | 120,125 | 40,125 | ||||||
Long-term debt | 129,865 | 124,805 | ||||||
Unsettled securities purchases | 29,562 | - | ||||||
Accrued expenses and other liabilities | 95,406 | 51,210 | ||||||
Total liabilities | 6,629,704 | 6,220,854 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||
Series A; $10 stated value; 0 and 21,700 shares issued and outstanding | - | 217 | ||||||
Series B; $1,000 stated value; 105,000 and 180,000 shares issued and outstanding | 105,000 | 178,557 | ||||||
Series D; $1,000 stated value; 16,613 shares issued and outstanding | 16,613 | 16,613 | ||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||
46,243,345 and 42,423,870 shares issued and outstanding | 46,243 | 42,424 | ||||||
Common stock, non-voting, $1 par value; 30,000,000 shares authorized; | ||||||||
13,188,206 and 15,316,794 shares issued and outstanding | 13,188 | 15,317 | ||||||
Common stock issuable; 241,832 and 133,238 shares | 3,930 | 3,119 | ||||||
Capital surplus | 1,078,676 | 1,057,951 | ||||||
Accumulated deficit | (448,091 | ) | (709,153 | ) | ||||
Accumulated other comprehensive loss | (19,844 | ) | (23,640 | ) | ||||
Total shareholders’ equity | 795,715 | 581,405 | ||||||
Total liabilities and shareholders’ equity | $ | 7,425,419 | $ | 6,802,259 |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||||
For the Three Months Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
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) | $ | 4,315,370 | $ | 49,205 | 4.52 | % | $ | 4,190,725 | $ | 53,366 | 5.07 | % | ||||||||||||
Taxable securities (3) | 2,258,938 | 11,050 | 1.96 | 2,065,311 | 9,622 | 1.86 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 20,681 | 332 | 6.42 | 22,483 | 358 | 6.37 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 227,622 | 1,108 | 1.95 | 203,090 | 1,104 | 2.17 | ||||||||||||||||||
Total interest-earning assets | 6,822,611 | 61,695 | 3.59 | 6,481,609 | 64,450 | 3.96 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (81,335 | ) | (112,846 | ) | ||||||||||||||||||||
Cash and due from banks | 61,083 | 54,714 | ||||||||||||||||||||||
Premises and equipment | 165,286 | 169,967 | ||||||||||||||||||||||
Other assets (3) | 402,328 | 184,398 | ||||||||||||||||||||||
Total assets | $ | 7,369,973 | $ | 6,777,842 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,372,367 | 473 | .14 | $ | 1,261,796 | 462 | .15 | ||||||||||||||||
Money market | 1,367,589 | 569 | .17 | 1,200,701 | 617 | .20 | ||||||||||||||||||
Savings | 250,418 | 24 | .04 | 224,624 | 38 | .07 | ||||||||||||||||||
Time less than $100,000 | 907,042 | 1,164 | .51 | 1,082,761 | 1,982 | .73 | ||||||||||||||||||
Time greater than $100,000 | 604,490 | 1,029 | .68 | 715,902 | 1,673 | .93 | ||||||||||||||||||
Brokered time deposits | 271,490 | (600 | ) | (.88 | ) | 135,708 | (97 | ) | (.28 | ) | ||||||||||||||
Total interest-bearing deposits | 4,773,396 | 2,659 | .22 | 4,621,492 | 4,675 | .40 | ||||||||||||||||||
Federal funds purchased and other borrowings | 54,839 | 508 | 3.68 | 67,403 | 524 | 3.09 | ||||||||||||||||||
Federal Home Loan Bank advances | 6,647 | 3 | .18 | 39,092 | 25 | .25 | ||||||||||||||||||
Long-term debt | 129,865 | 2,646 | 8.08 | 149,564 | 3,082 | 8.20 | ||||||||||||||||||
Total borrowed funds | 191,351 | 3,157 | 6.55 | 256,059 | 3,631 | 5.64 | ||||||||||||||||||
Total interest-bearing liabilities | 4,964,747 | 5,816 | .46 | 4,877,551 | 8,306 | .68 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,416,483 | 1,251,327 | ||||||||||||||||||||||
Other liabilities | 132,557 | 63,785 | ||||||||||||||||||||||
Total liabilities | 6,513,787 | 6,192,663 | ||||||||||||||||||||||
Shareholders’ equity | 856,186 | 585,179 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,369,973 | $ | 6,777,842 | ||||||||||||||||||||
Net interest revenue | $ | 55,879 | $ | 56,144 | ||||||||||||||||||||
Net interest-rate spread | 3.13 | % | 3.28 | % | ||||||||||||||||||||
Net interest margin (4) | 3.26 | % | 3.45 | % |
(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 losses of $6.33 million in 2013 and pretax unrealized gains of $22.2 million in 2012 are included in other assets for purposes of this presentation. |
(4) | Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||||
For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
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) | $ | 4,254,159 | $ | 201,278 | 4.73 | % | $ | 4,165,520 | $ | 217,705 | 5.23 | % | ||||||||||||
Taxable securities (3) | 2,169,024 | 40,331 | 1.86 | 2,065,162 | 43,657 | 2.11 | ||||||||||||||||||
Tax-exempt securities (1)(3) | 21,228 | 1,354 | 6.38 | 23,759 | 1,565 | 6.59 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 204,303 | 4,360 | 2.13 | 292,857 | 4,740 | 1.62 | ||||||||||||||||||
Total interest-earning assets | 6,648,714 | 247,323 | 3.72 | 6,547,298 | 267,667 | 4.09 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (95,411 | ) | (114,647 | ) | ||||||||||||||||||||
Cash and due from banks | 63,174 | 53,247 | ||||||||||||||||||||||
Premises and equipment | 167,424 | 172,544 | ||||||||||||||||||||||
Other assets (3) | 290,098 | 206,609 | ||||||||||||||||||||||
Total assets | $ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 1,285,842 | 1,759 | .14 | $ | 1,293,510 | 2,049 | .16 | ||||||||||||||||
Money market | 1,315,385 | 2,210 | .17 | 1,140,354 | 2,518 | .22 | ||||||||||||||||||
Savings | 244,725 | 133 | .05 | 216,880 | 150 | .07 | ||||||||||||||||||
Time less than $100,000 | 974,470 | 5,850 | .60 | 1,170,202 | 9,788 | .84 | ||||||||||||||||||
Time greater than $100,000 | 654,102 | 5,115 | .78 | 766,411 | 8,027 | 1.05 | ||||||||||||||||||
Brokered time deposits | 219,215 | (501 | ) | (.23 | ) | 155,902 | 1,282 | .82 | ||||||||||||||||
Total interest-bearing deposits | 4,693,739 | 14,566 | .31 | 4,743,259 | 23,814 | .50 | ||||||||||||||||||
Federal funds purchased and other borrowings | 66,561 | 2,071 | 3.11 | 80,593 | 2,987 | 3.71 | ||||||||||||||||||
Federal Home Loan Bank advances | 32,604 | 68 | .21 | 124,771 | 907 | .73 | ||||||||||||||||||
Long-term debt | 131,081 | 10,977 | 8.37 | 127,623 | 10,201 | 7.99 | ||||||||||||||||||
Total borrowed funds | 230,246 | 13,116 | 5.70 | 332,987 | 14,095 | 4.23 | ||||||||||||||||||
Total interest-bearing liabilities | 4,923,985 | 27,682 | .56 | 5,076,246 | 37,909 | .75 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 1,333,199 | 1,142,236 | ||||||||||||||||||||||
Other liabilities | 84,506 | 64,986 | ||||||||||||||||||||||
Total liabilities | 6,341,690 | 6,283,468 | ||||||||||||||||||||||
Shareholders’ equity | 732,309 | 581,583 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||
Net interest revenue | $ | 219,641 | $ | 229,758 | ||||||||||||||||||||
Net interest-rate spread | 3.16 | % | 3.34 | % | ||||||||||||||||||||
�� | ||||||||||||||||||||||||
Net interest margin (4) | 3.30 | % | 3.51 | % |
(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 $4.36 million in 2013 and pretax unrealized gains of $23.6 million in 2012 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. |