FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Georgia | 58-1807304 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
125 Highway 515 East, Blairsville, Georgia | 30512 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☒ | Accelerated filer ☐ | |||
Non-accelerated filer ☐ | Smaller Reporting Company ☐ |
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● | the condition of the general business and economic environment; |
● | the results of our internal credit stress tests may not accurately predict the impact on our financial condition if the economy were to deteriorate; |
● | our ability to maintain profitability; |
● | our ability to fully realize the balance of our net deferred tax asset, including net operating loss carryforwards; |
● | the risk that we may be required to increase the valuation allowance on our net deferred tax asset in future periods; |
● | the condition of the banking system and financial markets; |
● | our ability to raise capital; |
● | our ability to maintain liquidity or access other sources of funding; |
● | changes in the cost and availability of funding; |
● | the success of the local economies in which we operate; |
● | our lack of geographic diversification; |
● | our concentrations of residential and commercial construction and development loans and commercial real estate loans are subject to unique risks that could adversely affect our earnings; |
● | changes in prevailing interest rates may negatively affect our net income and the value of our assets and other interest rate risks; |
● | our accounting and reporting policies; |
● | if our allowance for loan losses is not sufficient to cover actual loan losses; |
● | losses due to fraudulent and negligent conduct of our loan customers, third party service providers or employees; |
● | risks related to our communications and information systems, including risks with respect to cybersecurity breaches; |
● | our reliance on third parties to provide key components of our business infrastructure and services required to operate our business; |
● | competition from financial institutions and other financial service providers; |
● | risks with respect to our ability to successfully expand and complete acquisitions and integrate businesses and operations that are acquired; |
● | if the conditions in the stock market, the public debt market and other capital markets deteriorate; |
● | the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and related regulations; |
● | changes in laws and regulations or failures to comply with such laws and regulations; |
● | changes in regulatory capital and other requirements; |
● | the costs and effects of litigation, examinations, investigations, or similar matters, or adverse facts and developments related thereto, including possible dilution; |
● | regulatory or judicial proceedings, board resolutions, informal memorandums of understanding or formal enforcement actions imposed by regulators that may occur; |
● | changes in tax laws, regulations and interpretations or challenges to our income tax provision; and |
● | our ability to maintain effective internal controls over financial reporting and disclosure controls and procedures. |
4 |
5 |
Market Share | Rank in Market | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Atlanta, Georgia MSA | ||||||||||||||||||||||||||||||||||||||||
Bartow | 11 | % | 11 | % | 9 | % | 12 | % | 9 | % | 3 | 3 | 4 | 3 | 4 | |||||||||||||||||||||||||
Carroll | 7 | 7 | 6 | 6 | 5 | 5 | 5 | 6 | 6 | 7 | ||||||||||||||||||||||||||||||
Cherokee | 5 | 4 | 5 | 4 | 4 | 9 | 9 | 9 | 9 | 9 | ||||||||||||||||||||||||||||||
Cobb | 3 | 3 | 3 | 3 | 3 | 12 | 11 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||
Coweta | 2 | 2 | 2 | 2 | 2 | 10 | 11 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||
Dawson | 34 | 36 | 36 | 36 | 30 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
DeKalb | 1 | 1 | 1 | 1 | 1 | 16 | 18 | 18 | 21 | 21 | ||||||||||||||||||||||||||||||
Douglas | 2 | 2 | 2 | 2 | 1 | 11 | 12 | 12 | 11 | 13 | ||||||||||||||||||||||||||||||
Fayette | 7 | 7 | 7 | 8 | 9 | 6 | 5 | 6 | 5 | 4 | ||||||||||||||||||||||||||||||
Forsyth | 8 | 7 | 6 | 3 | 2 | 4 | 6 | 7 | 11 | 13 | ||||||||||||||||||||||||||||||
Fulton | 1 | 1 | 1 | 1 | 1 | 21 | 20 | 20 | 20 | 18 | ||||||||||||||||||||||||||||||
Gwinnett | 3 | 3 | 3 | 3 | 3 | 7 | 7 | 8 | 7 | 8 | ||||||||||||||||||||||||||||||
Henry | 7 | 6 | 5 | 4 | 4 | 6 | 6 | 7 | 7 | 9 | ||||||||||||||||||||||||||||||
Newton | 3 | 3 | 3 | 3 | 3 | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||||||||
Paulding | 4 | 4 | 5 | 5 | 3 | 9 | 9 | 6 | 7 | 8 | ||||||||||||||||||||||||||||||
Pickens | 7 | 6 | 4 | 3 | 2 | 4 | 5 | 6 | 7 | 7 | ||||||||||||||||||||||||||||||
Rockdale | 9 | 12 | 12 | 12 | 12 | 6 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||||||||
Walton | 1 | 2 | 1 | 2 | 1 | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||
Gainesville, Georgia MSA | ||||||||||||||||||||||||||||||||||||||||
Hall | 12 | 12 | 12 | 14 | 14 | 4 | 4 | 5 | 3 | 3 | ||||||||||||||||||||||||||||||
North Georgia | ||||||||||||||||||||||||||||||||||||||||
Chattooga | 44 | 43 | 40 | 40 | 39 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Fannin | 55 | 50 | 49 | 52 | 49 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Floyd | 15 | 15 | 16 | 16 | 14 | 3 | 4 | 2 | 1 | 3 | ||||||||||||||||||||||||||||||
Gilmer | 27 | 26 | 25 | 25 | 15 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Habersham | 22 | 23 | 22 | 20 | 16 | 2 | 2 | 2 | 2 | 3 | ||||||||||||||||||||||||||||||
Jackson | 8 | 7 | 6 | 6 | 5 | 6 | 7 | 6 | 7 | 8 | ||||||||||||||||||||||||||||||
Lumpkin | 29 | 29 | 29 | 29 | 28 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Rabun | 15 | 14 | 13 | 12 | 11 | 3 | 3 | 3 | 5 | 5 | ||||||||||||||||||||||||||||||
Towns | 53 | 50 | 48 | 41 | 37 | 1 | 1 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Union | 84 | 84 | 83 | 84 | 86 | �� | 1 | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||||
White | 47 | 48 | 44 | 46 | 43 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Tennessee | ||||||||||||||||||||||||||||||||||||||||
Blount | 1 | 1 | 1 | 2 | 2 | 14 | 12 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||
Bradley | 5 | 5 | 5 | 5 | 5 | 8 | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||||||||
Knox | 1 | 1 | 1 | 1 | 1 | 27 | 30 | 26 | 23 | 25 | ||||||||||||||||||||||||||||||
Loudon | 15 | 15 | 13 | 14 | 14 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||||||||
McMinn | - | - | 3 | 2 | 2 | - | - | 9 | 9 | 9 | ||||||||||||||||||||||||||||||
Monroe | 3 | 3 | 4 | 4 | 3 | 8 | 8 | 7 | 7 | 8 | ||||||||||||||||||||||||||||||
Roane | 9 | 9 | 8 | 8 | 8 | 6 | 5 | 6 | 6 | 6 | ||||||||||||||||||||||||||||||
Coastal Georgia | ||||||||||||||||||||||||||||||||||||||||
Chatham | 2 | 2 | 1 | 1 | 1 | 9 | 9 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||
Glynn | 14 | 12 | 12 | 18 | 15 | 2 | 2 | 3 | 2 | 3 | ||||||||||||||||||||||||||||||
Ware | 4 | 3 | 3 | 4 | 4 | 9 | 9 | 9 | 9 | 8 | ||||||||||||||||||||||||||||||
North Carolina | ||||||||||||||||||||||||||||||||||||||||
Avery | 15 | 16 | 16 | 18 | 17 | 4 | 4 | 2 | 1 | 1 | ||||||||||||||||||||||||||||||
Cherokee | 35 | 35 | 35 | 29 | 29 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Clay | 44 | 44 | 45 | 48 | 49 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Graham | 75 | 71 | 71 | 72 | 72 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Haywood | 10 | 11 | 10 | 10 | 11 | 6 | 6 | 5 | 5 | 5 | ||||||||||||||||||||||||||||||
Henderson | 3 | 3 | 3 | 3 | 3 | 10 | 10 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||
Jackson | 30 | 28 | 25 | 25 | 25 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Macon | 6 | 7 | 8 | 8 | 8 | 6 | 5 | 5 | 6 | 5 | ||||||||||||||||||||||||||||||
Mitchell | 36 | 34 | 36 | 37 | 34 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Swain | 15 | 17 | 21 | 25 | 30 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
Transylvania | 16 | 14 | 15 | 14 | 13 | 3 | 3 | 3 | 3 | 4 | ||||||||||||||||||||||||||||||
Watauga | 2 | 2 | 2 | 1 | 1 | 11 | 11 | 12 | 12 | 11 | ||||||||||||||||||||||||||||||
Yancey | 19 | 20 | 18 | 20 | 19 | 3 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
South Carolina | ||||||||||||||||||||||||||||||||||||||||
Greenville | 1 | - | - | - | - | 27 | - | - | - | - |
6 |
Percentage | |||||
Loan Type | of Portfolio | Risk Elements | |||
Commercial Real Estate - owner occupied | 24.9% | General economic conditions; consumer spending; effect of rising interest rates; market’s loosening of credit underwriting standards and structures; and business confidence. | |||
Commercial Real Estate - income producing | 12.8% | Effect of rising interest rates, supply and demand of property type; consumer sentiment; business confidence; effect of financial markets, general economic conditions in the U.S and abroad and recovery of operating fundamentals. | |||
Commercial and industrial | 15.2% | Industry concentrations; inability to monitor the condition of collateral (inventory, accounts receivable and other non-real estate assets); use of specialized or obsolete equipment as collateral; insufficient cash flow from operations to service debt payments; declines in general economic conditions. | |||
Commercial construction | 4.2% | Effect of rising interest rates; changes in market demand for property, recovery of operating fundamentals, market’s loosening of credit underwriting standards and structures, and fluctuations in both the debt and equity markets. | |||
Residential mortgage | 18.5% | Loan portfolio concentrations; changes in general economic conditions or in the local economy; loss of borrower’s employment; insufficient collateral value due to decline in property value. | |||
Home equity lines of credit | 10.0% | Unemployment and underemployment levels; rise in interest rates; household income growth; declining home values reducing the amount of equity; lines of credit nearing their “end-of-draw” period. | |||
Residential construction | 6.4% | Inadequate long-term financing arrangements; inventory levels; cost overruns, changes in market demand for property; rising interest rates. | |||
Consumer installment | 2.2% | Consumer sentiment; elevated umemployment and underemployment in many of our local markets; household income stagnation; and increases in consumer prices. | |||
Indirect Auto | 5.7% | Consumer sentiment; unemployment and underemployment levels; rise in interest rates; increases in consumer prices; decline in houseload income and loosening of credit structures. |
7 |
United has implemented a centralized consumer credit center that provides underwriting, regulatory disclosure and document preparation for all consumer loan requests originated by the bank’s market lenders. Requests are processed through an automated loan origination software platform. Underwriters are involved with credit decisions at certain levels and with certain products.
7 (Watch) | Loans in this category are presently protected from apparent loss; however weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable. |
8 (Substandard) | These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken. |
9 (Doubtful) | Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment. |
10 (Loss) | Loans categorized as Loss have the same characteristics as Doubtful, however, loss is certain. Loans classified as Loss are charged-off. |
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● | making or servicing loans and certain types of leases; |
● | performing certain data processing services; |
● | acting as fiduciary or investment or financial advisor; |
● | providing brokerage services; |
● | underwriting bank eligible securities; |
● | underwriting debt and equity securities on a limited basis through separately capitalized subsidiaries; and |
● | making investments in corporations or projects designed primarily to promote community welfare. |
● | lending, exchanging, transferring, investing for others or safeguarding money or securities; |
● | insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability, or death, or providing and issuing annuities, and acting as principal, agent, or broker with respect thereto; |
● | providing financial, investment, or economic advisory services, including advising an investment company; |
● | issuing or selling instruments representing interests in pools of assets permissible for a bank to hold directly; and |
● | underwriting, dealing in or making a market in securities. |
(a) | total classified assets as of the most recent examination of the bank do not exceed 80% of equity capital (as defined by regulation); |
10 |
(b) | the aggregate amount of dividends declared or anticipated to be declared in the calendar year does not exceed 50% of the net profits after taxes but before dividends for the previous calendar year; and |
(c) | the ratio of equity capital to adjusted assets is not less than 6%. |
11 |
● | define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios; |
● | address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach, which was derived from the Basel I capital accords of the Basel Committee, with a more risk-sensitive approach based, in part, on the standardized approach in the Basel Committee’s 2004 “Basel II” capital accords; |
● | introduce a new capital measure called “common equity Tier 1” (“CET1”); |
● | specify that Tier 1 capital consists of CET1 and “additional Tier 1 capital” instruments meeting specified requirements; and |
● | implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. |
● | a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7% upon full implementation); |
● | a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); |
● | a minimum ratio of total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation); and |
● | a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to average assets (as compared to a current minimum leverage ratio of 3% for banking organizations that either have the highest supervisory rating or have implemented the appropriate federal regulatory authority’s risk-adjusted measure for market risk). |
12 |
● | risks to consumers and compliance with the federal consumer financial laws; |
● | the markets in which firms operate and risks to consumers posed by activities in those markets; |
● | depository institutions that offer a wide variety of consumer financial products and services; |
● | depository institutions with a more specialized focus; and |
● | non-depository companies that offer one or more consumer financial products or services. |
13 |
● | provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, |
● | be compatible with effective internal controls and risk management, and |
● | be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors and appropriate policies, procedures and monitoring. |
14 |
Name (age) | Position with United and Employment History | Officer of United Since | ||
Jimmy C. Tallent (62) | Chairman and Chief Executive Officer (2015); President, Chief Executive Officer and Director (1988 - 2015) | 1988 | ||
H. Lynn Harton (53) | President and Chief Operating Officer and Director (2015); Executive Vice President and Chief Operating Officer (2012 - 2015); prior to joining United was Executive Vice President and Special Assistant to the Chief Executive Officer of Toronto-Dominion Bank (2010 - 2012); President and Chief Executive Officer (2009 - 2010), Chief Commercial Banking Officer (2008-2009), Chief Risk and Chief Credit Officer (2007 - 2009) of South Financial Group | 2012 | ||
Rex S. Schuette (65) | Executive Vice President and Chief Financial Officer (2001 - 2015) | 2001 | ||
Bill M. Gilbert (62) | President, Community Banking (2015); Director of Banking (2013 - 2015); Regional President of North Georgia and Coastal Georgia (2011 - 2013); Senior Vice President of Retail Banking (2003 - 2011) | 2000 | ||
Bradley J. Miller (44) | Executive Vice President, Chief Risk Officer and General Counsel (2015); Senior Vice President and General Counsel (2007 - 2015) | 2007 | ||
Robert A. Edwards (50) | Executive Vice President and Chief Credit Officer (2015); prior to joining United was Senior Vice President and Executive Credit Officer of Toronto-Dominion Bank (2010 - 2015); Executive Vice President and Chief Credit Officer of South Financial Group (2008 - 2010) | 2015 | ||
Richard W. Bradshaw (53) | President, Specialized Lending (2014 - 2015); prior to joining United was Senior Vice President, Head of United States SBA Programs of Toronto-Dominion Bank (2010 - 2014); Executive Vice President, Director of Corporate Financial Services of Carolina First Bank (2009 - 2010) | 2014 | ||
15 |
● | a decrease in the demand for loans and other products and services offered by us; |
● | a decrease in the value of our loans secured by residential or commercial real estate; |
● | a permanent impairment of our assets, such as our deferred tax assets; or |
● | an increase in the number of customers or other counterparties who default on their loans or other obligations to us, which could result in a higher level of nonperforming assets, net charge-offs and provision for loan losses. |
16 |
17 |
18 |
● | the potential inaccuracy of the estimates and judgments used to evaluate credit, operations, management and market risks with respect to an acquired branch or institution, a new branch office or a new market; |
● | the time and costs of evaluating new markets, hiring or retaining experienced local management and opening new offices and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion; |
● | the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse effects on results of operations; |
● | the loss of key employees and customers of an acquired branch or institution; |
● | the difficulty or failure to successfully integrate the acquired financial institution or portion of the institution; and |
● | the temporary disruption of our business or the business of the acquired institution. |
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ITEM 5. | MARKET FOR UNITED’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
2014 | 2013 | ||||||||||||||||||||||||
High | Low | Close | Avg Daily Volume | High | Low | Close | Avg Daily Volume | ||||||||||||||||||
First quarter | $ | 20.28 | $ | 15.74 | $ | 19.41 | 494,205 | $ | 11.57 | $ | 9.59 | $ | 11.34 | 195,803 | |||||||||||
Second quarter | 19.87 | 14.86 | 16.37 | 308,486 | 12.94 | 10.15 | 12.42 | 184,922 | |||||||||||||||||
Third quarter | 18.42 | 15.42 | 16.46 | 331,109 | 16.04 | 12.15 | 14.99 | 341,270 | |||||||||||||||||
Fourth quarter | 19.50 | 15.16 | 18.94 | 262,598 | 18.56 | 14.82 | 17.75 | 421,948 |
At January 31, 2015, there were 6,636 record shareholders and approximately 15,450 beneficial shareholders of United’s common stock.
23 |
Cumulative Total Return * | ||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||
United Community Banks, Inc. | $ | 100 | $ | 58 | $ | 41 | $ | 56 | $ | 105 | $ | 112 | ||||||
Nasdaq Stock Market (U.S.) Index | 100 | 117 | 115 | 133 | 184 | 209 | ||||||||||||
Nasdaq Bank Index | 100 | 112 | 98 | 113 | 158 | 162 |
* | Assumes $100 invested on December 31, 2009 in United’s common stock and above noted indexes. Total return includes reinvestment of dividends at the closing stock price of the common stock on the dividend payment date and the closing values of stock and indexes as of December 31 of each year. |
24 |
For the Years Ended December 31 | ||||||||||||||||||||
(in thousands, except per share data; | ||||||||||||||||||||
taxable equivalent) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||
Net interest revenue | $ | 224,418 | $ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | ||||||||||
Operating provision for credit losses (1) | 8,500 | 65,500 | 62,500 | 251,000 | 234,750 | |||||||||||||||
Operating fee revenue | 55,554 | 56,598 | 56,112 | 44,907 | 46,963 | |||||||||||||||
Total operating revenue (1) | 271,472 | 210,739 | 223,370 | 32,577 | 56,850 | |||||||||||||||
Operating expenses (2) | 162,865 | 174,304 | 186,774 | 261,599 | 242,952 | |||||||||||||||
Loss on sale of nonperforming assets | — | — | — | — | 45,349 | |||||||||||||||
Operating income (loss) from continuing operations before taxes | 108,607 | 36,435 | 36,596 | (229,022 | ) | (231,451 | ) | |||||||||||||
Operating income taxes | 40,987 | (236,705 | ) | 2,740 | (2,276 | ) | 73,218 | |||||||||||||
Net operating income (loss) from continuing operations | 67,620 | 273,140 | 33,856 | (226,746 | ) | (304,669 | ) | |||||||||||||
Noncash goodwill impairment charges | — | — | — | — | (210,590 | ) | ||||||||||||||
Fraud loss provision and subsequent recovery, net of tax benefit | — | — | — | — | 11,750 | |||||||||||||||
Net income (loss) from discontinued operations | — | — | — | — | (101 | ) | ||||||||||||||
Gain from sale of subsidiary, net of income taxes and selling costs | — | — | — | — | 1,266 | |||||||||||||||
Net income (loss) | 67,620 | 273,140 | 33,856 | (226,746 | ) | (502,344 | ) | |||||||||||||
Preferred dividends and discount accretion | 439 | 12,078 | 12,148 | 11,838 | 10,316 | |||||||||||||||
Net income (loss) available to common shareholders | $ | 67,181 | $ | 261,062 | $ | 21,708 | $ | (238,584 | ) | $ | (512,660 | ) | ||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Per common share: | ||||||||||||||||||||
Diluted operating earnings (loss) from continuing operations (1)(2) | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | ||||||||
Diluted earnings (loss) from continuing operations | 1.11 | 4.44 | .38 | (5.97 | ) | (27.15 | ) | |||||||||||||
Diluted earnings (loss) | 1.11 | 4.44 | .38 | (5.97 | ) | (27.09 | ) | |||||||||||||
Cash dividends declared | .11 | — | — | — | — | |||||||||||||||
Book value | 12.20 | 11.30 | 6.67 | 6.62 | 15.40 | |||||||||||||||
Tangible book value (4) | 12.15 | 11.26 | 6.57 | 6.47 | 14.80 | |||||||||||||||
Key performance ratios: | ||||||||||||||||||||
Return on common equity (3) | 9.17 | % | 46.72 | % | 5.43 | % | (93.57 | )% | (85.08 | )% | ||||||||||
Return on assets | .91 | 3.86 | .49 | (3.15 | ) | (6.61 | ) | |||||||||||||
Dividend payout ratio | 9.91 | — | — | — | — | |||||||||||||||
Net interest margin | 3.26 | 3.30 | 3.51 | 3.52 | 3.59 | |||||||||||||||
Operating efficiency ratio from continuing operations (2) | 58.26 | 63.14 | 65.43 | 92.27 | 98.98 | |||||||||||||||
Average equity to average assets | 9.69 | 10.35 | 8.47 | 7.75 | 10.77 | |||||||||||||||
Average tangible equity to average assets (4) | 9.67 | 10.31 | 8.38 | 7.62 | 8.88 | |||||||||||||||
Average tangible common equity to average assets (4) | 9.60 | 7.55 | 5.54 | 3.74 | 6.52 | |||||||||||||||
Tangible common equity to risk-weighted assets (4) | 13.82 | 13.17 | 8.26 | 8.25 | 5.64 | |||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||
Non-performing loans | $ | 17,881 | $ | 26,819 | $ | 109,894 | $ | 127,479 | $ | 179,094 | ||||||||||
Foreclosed properties | 1,726 | 4,221 | 18,264 | 32,859 | 142,208 | |||||||||||||||
Total non-performing assets (NPAs) | 19,607 | 31,040 | 128,158 | 160,338 | 321,302 | |||||||||||||||
Allowance for loan losses | 71,619 | 76,762 | 107,137 | 114,468 | 174,695 | |||||||||||||||
Operating net charge-offs (1) | 13,879 | 93,710 | 69,831 | 311,227 | 215,657 | |||||||||||||||
Allowance for loan losses to loans | 1.53 | % | 1.77 | % | 2.57 | % | 2.79 | % | 3.79 | % | ||||||||||
Operating net charge-offs to average loans (1) | .31 | 2.22 | 1.69 | 7.33 | 4.42 | |||||||||||||||
NPAs to loans and foreclosed properties | .42 | .72 | 3.06 | 3.87 | 6.77 | |||||||||||||||
NPAs to total assets | .26 | .42 | 1.88 | 2.30 | 4.42 | |||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||
Loans | $ | 4,450 | $ | 4,254 | $ | 4,166 | $ | 4,307 | $ | 4,961 | ||||||||||
Investment securities | 2,274 | 2,190 | 2,089 | 1,999 | 1,453 | |||||||||||||||
Earning assets | 6,880 | 6,649 | 6,547 | 6,785 | 6,822 | |||||||||||||||
Total assets | 7,436 | 7,074 | 6,865 | 7,189 | 7,605 | |||||||||||||||
Deposits | 6,228 | 6,027 | 5,885 | 6,275 | 6,373 | |||||||||||||||
Shareholders’ equity | 720 | 732 | 582 | 557 | 819 | |||||||||||||||
Common shares - Basic (thousands) | 60,588 | 58,787 | 57,857 | 39,943 | 18,925 | |||||||||||||||
Common shares - Diluted (thousands) | 60,590 | 58,845 | 57,857 | 39,943 | 18,925 | |||||||||||||||
AT YEAR END ($ in millions) | ||||||||||||||||||||
Loans * | $ | 4,672 | $ | 4,329 | $ | 4,175 | $ | 4,110 | $ | 4,604 | ||||||||||
Investment securities | 2,198 | 2,312 | 2,079 | 2,120 | 1,490 | |||||||||||||||
Total assets | 7,567 | 7,425 | 6,802 | 6,983 | 7,276 | |||||||||||||||
Deposits | 6,327 | 6,202 | 5,952 | 6,098 | 6,469 | |||||||||||||||
Shareholders’ equity | 740 | 796 | 581 | 575 | 469 | |||||||||||||||
Common shares outstanding (thousands) | 60,259 | 59,432 | 57,741 | 57,561 | 18,937 |
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes goodwill impairment charge of $211 million in 2010. (3) 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). (4) Excludes effect of acquisition related intangibles and associated amortization. |
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC. |
25 |
SELECTED FINANCIAL DATA (Continued) |
2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||
Interest revenue | $ | 64,353 | $ | 63,338 | $ | 61,783 | $ | 60,495 | $ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | ||||||||||||||||
Interest expense | 6,021 | 6,371 | 6,833 | 6,326 | 5,816 | 7,169 | 7,157 | 7,540 | ||||||||||||||||||||||||
Net interest revenue | 58,332 | 56,967 | 54,950 | 54,169 | 55,879 | 54,257 | 54,931 | 54,574 | ||||||||||||||||||||||||
Provision for credit losses | 1,800 | 2,000 | 2,200 | 2,500 | 3,000 | 3,000 | 48,500 | 11,000 | ||||||||||||||||||||||||
Fee revenue | 14,823 | 14,412 | 14,143 | 12,176 | 13,519 | 14,225 | 15,943 | 12,911 | ||||||||||||||||||||||||
Total revenue | 71,355 | 69,379 | 66,893 | 63,845 | 66,398 | 65,482 | 22,374 | 56,485 | ||||||||||||||||||||||||
Operating expenses | 41,919 | 41,364 | 40,532 | 39,050 | 41,614 | 40,097 | 48,823 | 43,770 | ||||||||||||||||||||||||
Income before income taxes | 29,436 | 28,015 | 26,361 | 24,795 | 24,784 | 25,385 | (26,449 | ) | 12,715 | |||||||||||||||||||||||
Income tax expense (benefit) | 11,189 | 10,399 | 10,004 | 9,395 | 8,873 | 9,885 | (256,413 | ) | 950 | |||||||||||||||||||||||
Net income | 18,247 | 17,616 | 16,357 | 15,400 | 15,911 | 15,500 | 229,964 | 11,765 | ||||||||||||||||||||||||
Preferred dividends and discount accretion | — | — | — | 439 | 2,912 | 3,059 | 3,055 | 3,052 | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 18,247 | $ | 17,616 | $ | 16,357 | $ | 14,961 | $ | 12,999 | $ | 12,441 | $ | 226,909 | $ | 8,713 | ||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||
Diluted income | $ | .30 | $ | .29 | $ | .27 | $ | .25 | $ | .22 | $ | .21 | $ | 3.90 | $ | .15 | ||||||||||||||||
Cash dividends declared | .05 | .03 | .03 | — | — | — | — | — | ||||||||||||||||||||||||
Book value | 12.20 | 12.15 | 11.94 | 11.66 | 11.30 | 10.99 | 10.90 | 6.85 | ||||||||||||||||||||||||
Tangible book value (2) | 12.15 | 12.10 | 11.91 | 11.63 | 11.26 | 10.95 | 10.82 | 6.76 | ||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||
Return on common equity (1)(3) | 9.60 | % | 9.41 | % | 8.99 | % | 8.64 | % | 7.52 | % | 7.38 | % | 197.22 | % | 8.51 | % | ||||||||||||||||
Return on assets (3) | .96 | .95 | .88 | .85 | .86 | .86 | 13.34 | .70 | ||||||||||||||||||||||||
Dividend payout ratio | 16.67 | 10.34 | 11.11 | — | — | — | — | — | ||||||||||||||||||||||||
Net interest margin (3) | 3.31 | 3.32 | 3.21 | 3.21 | 3.26 | 3.26 | 3.33 | 3.37 | ||||||||||||||||||||||||
Efficiency ratio | 57.47 | 57.96 | 58.65 | 59.05 | 60.02 | 58.55 | 68.89 | 64.97 | ||||||||||||||||||||||||
Average equity to average assets | 9.76 | 9.85 | 9.61 | 9.52 | 11.62 | 11.80 | 11.57 | 8.60 | ||||||||||||||||||||||||
Average tangible equity to average assets (2) | 9.72 | 9.83 | 9.58 | 9.50 | 11.59 | 11.76 | 11.53 | 8.53 | ||||||||||||||||||||||||
Average tangible common equity to average assets (2) | 9.72 | 9.83 | 9.58 | 9.22 | 8.99 | 9.02 | 8.79 | 5.66 | ||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (2) | 13.82 | 14.10 | 13.92 | 13.63 | 13.18 | 13.34 | 13.16 | 8.45 | ||||||||||||||||||||||||
ASSET QUALITY * | ||||||||||||||||||||||||||||||||
Non-performing loans | $ | 17,881 | $ | 18,745 | $ | 20,724 | $ | 25,250 | $ | 26,819 | $ | 26,088 | $ | 27,864 | $ | 96,006 | ||||||||||||||||
Foreclosed properties | 1,726 | 3,146 | 2,969 | 5,594 | 4,221 | 4,467 | 3,936 | 16,734 | ||||||||||||||||||||||||
Total non-performing assets (NPAs) | 19,607 | 21,891 | 23,693 | 30,844 | 31,040 | 30,555 | 31,800 | 112,740 | ||||||||||||||||||||||||
Allowance for loan losses | 71,619 | 71,928 | 73,248 | 75,223 | 76,762 | 80,372 | 81,845 | 105,753 | ||||||||||||||||||||||||
Net charge-offs | 2,509 | 3,155 | 4,175 | 4,039 | 4,445 | 4,473 | 72,408 | 12,384 | ||||||||||||||||||||||||
Allowance for loan losses to loans | 1.53 | % | 1.57 | % | 1.66 | % | 1.73 | % | 1.77 | % | 1.88 | % | 1.95 | % | 2.52 | % | ||||||||||||||||
Net charge-offs to average loans (3) | .22 | .28 | .38 | .38 | .41 | .42 | 6.87 | 1.21 | ||||||||||||||||||||||||
NPAs to loans and foreclosed properties | .42 | .48 | .54 | .71 | .72 | .72 | .76 | 2.68 | ||||||||||||||||||||||||
NPAs to total assets | .26 | .29 | .32 | .42 | .42 | .42 | .44 | 1.65 | ||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||
Loans | $ | 4,621 | $ | 4,446 | $ | 4,376 | $ | 4,356 | $ | 4,315 | $ | 4,250 | $ | 4,253 | $ | 4,197 | ||||||||||||||||
Investment securities | 2,222 | 2,231 | 2,326 | 2,320 | 2,280 | 2,178 | 2,161 | 2,141 | ||||||||||||||||||||||||
Earning assets | 7,013 | 6,820 | 6,861 | 6,827 | 6,823 | 6,615 | 6,608 | 6,547 | ||||||||||||||||||||||||
Total assets | 7,565 | 7,374 | 7,418 | 7,384 | 7,370 | 7,170 | 6,915 | 6,834 | ||||||||||||||||||||||||
Deposits | 6,383 | 6,143 | 6,187 | 6,197 | 6,190 | 5,987 | 5,983 | 5,946 | ||||||||||||||||||||||||
Shareholders’ equity | 738 | 726 | 713 | 703 | 856 | 846 | 636 | 588 | ||||||||||||||||||||||||
Common shares - basic (thousands) | 60,830 | 60,776 | 60,712 | 60,059 | 59,923 | 59,100 | 58,141 | 58,081 | ||||||||||||||||||||||||
Common shares - diluted (thousands) | 60,833 | 60,779 | 60,714 | 60,061 | 59,925 | 59,202 | 58,141 | 58,081 | ||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||
Loans * | $ | 4,672 | $ | 4,569 | $ | 4,410 | $ | 4,356 | $ | 4,329 | $ | 4,267 | $ | 4,189 | $ | 4,194 | ||||||||||||||||
Investment securities | 2,198 | 2,222 | 2,190 | 2,302 | 2,312 | 2,169 | 2,152 | 2,141 | ||||||||||||||||||||||||
Total assets | 7,567 | 7,526 | 7,352 | 7,398 | 7,425 | 7,243 | 7,163 | 6,849 | ||||||||||||||||||||||||
Deposits | 6,327 | 6,241 | 6,164 | 6,248 | 6,202 | 6,113 | 6,012 | 6,026 | ||||||||||||||||||||||||
Shareholders’ equity | 740 | 736 | 722 | 704 | 796 | 852 | 829 | 592 | ||||||||||||||||||||||||
Common shares outstanding (thousands) | 60,259 | 60,248 | 60,139 | 60,092 | 59,432 | 59,412 | 57,831 | 57,767 |
(3) Annualized.
26 |
27 |
28 |
29 |
30 |
Table 1 - Non-GAAP Performance Measures Reconciliation - Annual | ||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||
(in thousands, except per share | For the Twelve Months Ended December 31, | |||||||||||||||||||
data; taxable equivalent) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 249,969 | $ | 247,323 | $ | 267,667 | $ | 304,308 | $ | 344,493 | ||||||||||
Taxable equivalent adjustment | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | ||||||||||
Interest revenue (GAAP) | $ | 248,432 | $ | 245,840 | $ | 265,977 | $ | 302,601 | $ | 342,492 | ||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 224,418 | $ | 219,641 | $ | 229,758 | $ | 238,670 | $ | 244,637 | ||||||||||
Taxable equivalent adjustment | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | ||||||||||
Net interest revenue (GAAP) | $ | 222,881 | $ | 218,158 | $ | 228,068 | $ | 236,963 | $ | 242,636 | ||||||||||
Provision for credit losses reconciliation | ||||||||||||||||||||
Operating provision for credit losses | $ | 8,500 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 234,750 | ||||||||||
Partial recovery of special fraud-related loan loss | — | — | — | — | (11,750 | ) | ||||||||||||||
Provision for credit losses (GAAP) | $ | 8,500 | $ | 65,500 | $ | 62,500 | $ | 251,000 | $ | 223,000 | ||||||||||
Total revenue reconciliation | ||||||||||||||||||||
Total operating revenue | $ | 271,472 | $ | 210,739 | $ | 223,370 | $ | 32,577 | $ | 56,850 | ||||||||||
Taxable equivalent adjustment | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | ||||||||||
Partial recovery of special fraud-related loss | — | — | — | — | 11,750 | |||||||||||||||
Total revenue (GAAP) | $ | 269,935 | $ | 209,256 | $ | 221,680 | $ | 30,870 | $ | 66,599 | ||||||||||
Expense reconciliation | ||||||||||||||||||||
Operating expense | $ | 162,865 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 288,301 | ||||||||||
Noncash goodwill impairment charge | — | — | — | — | 210,590 | |||||||||||||||
Operating expense (GAAP) | $ | 162,865 | $ | 174,304 | $ | 186,774 | $ | 261,599 | $ | 498,891 | ||||||||||
Income before taxes reconciliation | ||||||||||||||||||||
Income before taxes | $ | 108,607 | $ | 36,435 | $ | 36,596 | $ | (229,022 | ) | $ | (231,451 | ) | ||||||||
Taxable equivalent adjustment | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | ||||||||||
Income before taxes (GAAP) | $ | 107,070 | $ | 34,952 | $ | 34,906 | $ | (230,729 | ) | $ | (432,292 | ) | ||||||||
Income tax expense (benefit) reconciliation | ||||||||||||||||||||
Income tax expense (benefit) | $ | 40,987 | $ | (236,705 | ) | $ | 2,740 | $ | (2,276 | ) | $ | 73,218 | ||||||||
Taxable equivalent adjustment | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | (2,001 | ) | ||||||||||
Income tax expense (benefit) (GAAP) | $ | 39,450 | $ | (238,188 | ) | $ | 1,050 | $ | (3,983 | ) | $ | 71,217 | ||||||||
Diluted earnings (loss) from continuing operations per common share reconciliation | ||||||||||||||||||||
Diluted operating earnings (loss) from continuing operations per common share | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (16.64 | ) | ||||||||
Noncash goodwill impairment charge | — | — | — | — | (11.13 | ) | ||||||||||||||
Partial recovery of special fraud-related loan loss | — | — | — | — | .62 | |||||||||||||||
Diluted earnings (loss) from continuing operations per common share (GAAP) | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | $ | (27.15 | ) | ||||||||
Book value per common share reconciliation | ||||||||||||||||||||
Tangible book value per common share | $ | 12.15 | $ | 11.26 | $ | 6.57 | $ | 6.47 | $ | 14.80 | ||||||||||
Effect of goodwill and other intangibles | .05 | .04 | .10 | .15 | .60 | |||||||||||||||
Book value per common share (GAAP) | $ | 12.20 | $ | 11.30 | $ | 6.67 | $ | 6.62 | $ | 15.40 | ||||||||||
Efficiency ratio from continuing operations reconciliation | ||||||||||||||||||||
Operating efficiency ratio from continuing operations | 58.26 | % | 63.14 | % | 65.43 | % | 92.27 | % | 98.98 | % | ||||||||||
Noncash goodwill impairment charge | — | — | — | — | 72.29 | |||||||||||||||
Efficiency ratio from continuing operations (GAAP) | 58.26 | % | 63.14 | % | 65.43 | % | 92.27 | % | 171.27 | % | ||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||
Tangible common equity to assets | 9.60 | % | 7.55 | % | 5.54 | % | 3.74 | % | 6.52 | % | ||||||||||
Effect of preferred equity | .07 | 2.76 | 2.84 | 3.88 | 2.36 | |||||||||||||||
Tangible equity to assets | 9.67 | 10.31 | 8.38 | 7.62 | 8.88 | |||||||||||||||
Effect of goodwill and other intangibles | .02 | .04 | .09 | .13 | 1.89 | |||||||||||||||
Equity to assets (GAAP) | 9.69 | % | 10.35 | % | 8.47 | % | 7.75 | % | 10.77 | % | ||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||
Tangible common equity to risk-weighted assets | 13.82 | % | 13.18 | % | 8.26 | % | 8.25 | % | 5.64 | % | ||||||||||
Effect of other comprehensive income | .35 | .39 | .51 | (.03 | ) | (.42 | ) | |||||||||||||
Effect of deferred tax limitation | (3.11 | ) | (4.26 | ) | — | — | — | |||||||||||||
Effect of trust preferred | 1.00 | 1.04 | 1.15 | 1.18 | 1.06 | |||||||||||||||
Effect of preferred equity | — | 2.39 | 4.24 | 4.29 | 3.53 | |||||||||||||||
Tier I capital ratio (Regulatory) | 12.06 | % | 12.74 | % | 14.16 | % | 13.69 | % | 9.81 | % | ||||||||||
Net charge-offs reconciliation | ||||||||||||||||||||
Operating net charge-offs | $ | 13,878 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 215,657 | ||||||||||
Subsequent partial recovery of fraud-related charge-off | — | — | — | — | (11,750 | ) | ||||||||||||||
Net charge-offs (GAAP) | $ | 13,878 | $ | 93,710 | $ | 69,831 | $ | 311,227 | $ | 203,907 | ||||||||||
Net charge-offs to average loans reconciliation | ||||||||||||||||||||
Operating net charge-offs to average loans | .31 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.42 | % | ||||||||||
Subsequent partial recovery of fraud-related charge-off | — | — | — | — | (.25 | ) | ||||||||||||||
Net charge-offs to average loans (GAAP) | .31 | % | 2.22 | % | 1.69 | % | 7.33 | % | 4.17 | % | ||||||||||
31 |
Table 1 (Continued) - Non-GAAP Performance Measures Reconciliation - Quarterly | ||||||||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands, except per share | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 64,353 | $ | 63,338 | $ | 61,783 | $ | 60,495 | $ | 61,695 | $ | 61,426 | $ | 62,088 | $ | 62,114 | ||||||||||||||||
Taxable equivalent adjustment | (398 | ) | (405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (368 | ) | (365 | ) | ||||||||||||||||
Interest revenue (GAAP) | $ | 63,955 | $ | 62,933 | $ | 61,406 | $ | 60,138 | $ | 61,315 | $ | 61,056 | $ | 61,720 | $ | 61,749 | ||||||||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 58,332 | $ | 56,967 | $ | 54,950 | $ | 54,169 | $ | 55,879 | $ | 54,257 | $ | 54,931 | $ | 54,574 | ||||||||||||||||
Taxable equivalent adjustment | (398 | ) | (405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (368 | ) | (365 | ) | ||||||||||||||||
Net interest revenue (GAAP) | $ | 57,934 | $ | 56,562 | $ | 54,573 | $ | 53,812 | $ | 55,499 | $ | 53,887 | $ | 54,563 | $ | 54,209 | ||||||||||||||||
Total revenue reconciliation | ||||||||||||||||||||||||||||||||
Total operating revenue | $ | 71,355 | $ | 69,379 | $ | 66,893 | $ | 63,845 | $ | 66,398 | $ | 65,482 | $ | 22,374 | $ | 56,485 | ||||||||||||||||
Taxable equivalent adjustment | (398 | ) | (405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (368 | ) | (365 | ) | ||||||||||||||||
Total revenue (GAAP) | $ | 70,957 | $ | 68,974 | $ | 66,516 | $ | 63,488 | $ | 66,018 | $ | 65,112 | $ | 22,006 | $ | 56,120 | ||||||||||||||||
Income before taxes reconciliation | ||||||||||||||||||||||||||||||||
Income before taxes | $ | 29,436 | $ | 28,015 | $ | 26,361 | $ | 24,795 | $ | 24,784 | $ | 25,385 | $ | (26,449 | ) | $ | 12,715 | |||||||||||||||
Taxable equivalent adjustment | (398 | ) | (405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (368 | ) | (365 | ) | ||||||||||||||||
Income before taxes (GAAP) | $ | 29,038 | $ | 27,610 | $ | 25,984 | $ | 24,438 | $ | 24,404 | $ | 25,015 | $ | (26,817 | ) | $ | 12,350 | |||||||||||||||
Income tax expense (benefit) reconciliation | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 11,189 | $ | 10,399 | $ | 10,004 | $ | 9,395 | $ | 8,873 | $ | 9,885 | $ | (256,413 | ) | $ | 950 | |||||||||||||||
Taxable equivalent adjustment | (398 | ) | (405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (368 | ) | (365 | ) | ||||||||||||||||
Income tax expense (benefit) (GAAP) | $ | 10,791 | $ | 9,994 | $ | 9,627 | $ | 9,038 | $ | 8,493 | $ | 9,515 | $ | (256,781 | ) | $ | 585 | |||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||||||
Tangible book value per common share | $ | 12.15 | $ | 12.10 | $ | 11.91 | $ | 11.63 | $ | 11.26 | $ | 10.95 | $ | 10.82 | $ | 6.76 | ||||||||||||||||
Effect of goodwill and other intangibles | .05 | .05 | .03 | .03 | .04 | .04 | .08 | .09 | ||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 12.20 | $ | 12.15 | $ | 11.94 | $ | 11.66 | $ | 11.30 | $ | 10.99 | $ | 10.90 | $ | 6.85 | ||||||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||||||||||||
Tangible common equity to assets | 9.72 | % | 9.83 | % | 9.58 | % | 9.22 | % | 8.99 | % | 9.02 | % | 8.79 | % | 5.66 | % | ||||||||||||||||
Effect of preferred equity | — | — | — | .28 | 2.60 | 2.74 | 2.74 | 2.87 | ||||||||||||||||||||||||
Tangible equity to assets | 9.72 | 9.83 | 9.58 | 9.50 | 11.59 | 11.76 | 11.53 | 8.53 | ||||||||||||||||||||||||
Effect of goodwill and other intangibles | .04 | .02 | .03 | .02 | .03 | .04 | .04 | .07 | ||||||||||||||||||||||||
Equity to assets (GAAP) | 9.76 | % | 9.85 | % | 9.61 | % | 9.52 | % | 11.62 | % | 11.80 | % | 11.57 | % | 8.60 | % | ||||||||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 13.82 | % | 14.10 | % | 13.92 | % | 13.63 | % | 13.18 | % | 13.34 | % | 13.16 | % | 8.45 | % | ||||||||||||||||
Effect of other comprehensive income | .35 | .34 | .53 | .36 | .39 | .49 | .29 | .49 | ||||||||||||||||||||||||
Effect of deferred tax limitation | (3.11 | ) | (3.39 | ) | (3.74 | ) | (3.92 | ) | (4.26 | ) | (4.72 | ) | (4.99 | ) | - | |||||||||||||||||
Effect of trust preferred | 1.00 | 1.02 | 1.04 | 1.03 | 1.04 | 1.09 | 1.11 | 1.15 | ||||||||||||||||||||||||
Effect of preferred equity | — | — | — | — | 2.39 | 4.01 | 4.11 | 4.22 | ||||||||||||||||||||||||
Tier I capital ratio (Regulatory) | 12.06 | % | 12.07 | % | 11.75 | % | 11.10 | % | 12.74 | % | 14.21 | % | 13.68 | % | 14.31 | % |
32 |
33 |
Table 2 - Average Consolidated Balance Sheet and Net Interest Margin Analysis |
For the Years Ended December 31, |
(In thousands, taxable equivalent) |
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Average | Avg. | Average | Avg. | Average | Avg. | |||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans (1)(2) | $ | 4,450,268 | $ | 197,039 | 4.43 | % | $ | 4,254,159 | $ | 201,278 | 4.73 | % | $ | 4,165,520 | $ | 217,705 | 5.23 | % | ||||||||||||||||||
Taxable securities(3) | 2,255,084 | 47,755 | 2.12 | 2,169,024 | 40,331 | 1.86 | 2,065,162 | 43,657 | 2.11 | |||||||||||||||||||||||||||
Tax-exempt securities (1)(3) | 19,279 | 1,209 | 6.27 | 21,228 | 1,354 | 6.38 | 23,759 | 1,565 | 6.59 | |||||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | 155,803 | 3,966 | 2.55 | 204,303 | 4,360 | 2.13 | 292,857 | 4,740 | 1.62 | |||||||||||||||||||||||||||
Total interest-earning assets | 6,880,434 | 249,969 | 3.63 | 6,648,714 | 247,323 | 3.72 | 6,547,298 | 267,667 | 4.09 | |||||||||||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (75,237 | ) | (95,411 | ) | (114,647 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 67,818 | 63,174 | 53,247 | |||||||||||||||||||||||||||||||||
Premises and equipment | 161,391 | 167,424 | 172,544 | |||||||||||||||||||||||||||||||||
Other assets(3) | 401,240 | 290,098 | 206,609 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,435,646 | $ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||
NOW | $ | 1,396,373 | $ | 1,651 | .12 | $ | 1,285,842 | $ | 1,759 | .14 | $ | 1,293,510 | $ | 2,049 | .16 | |||||||||||||||||||||
Money market | 1,389,837 | 3,060 | .22 | 1,315,385 | 2,210 | .17 | 1,140,354 | 2,518 | .22 | |||||||||||||||||||||||||||
Savings deposits | 277,351 | 81 | .03 | 244,725 | 133 | .05 | 216,880 | 150 | .07 | |||||||||||||||||||||||||||
Time deposits less than $100,000 | 811,846 | 3,636 | .45 | 974,470 | 5,850 | .60 | 1,170,202 | 9,788 | .84 | |||||||||||||||||||||||||||
Time deposits greater than $100,000 | 551,027 | 3,373 | .61 | 654,102 | 5,115 | .78 | 766,411 | 8,027 | 1.05 | |||||||||||||||||||||||||||
Brokered deposits | 293,657 | 124 | .04 | 219,215 | (501 | ) | (.23 | ) | 155,902 | 1,282 | .82 | |||||||||||||||||||||||||
Total interest-bearing deposits | 4,720,091 | 11,925 | .25 | 4,693,739 | 14,566 | .31 | 4,743,259 | 23,814 | .50 | |||||||||||||||||||||||||||
Federal funds purchased, repurchase agreeements, & other short-term borrowings | 74,541 | 2,160 | 2.90 | 66,561 | 2,071 | 3.11 | 80,593 | 2,987 | 3.71 | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | 175,481 | 912 | .52 | 32,604 | 68 | .21 | 124,771 | 907 | .73 | |||||||||||||||||||||||||||
Long-term debt | 129,865 | 10,554 | 8.13 | 131,081 | 10,977 | 8.37 | 127,623 | 10,201 | 7.99 | |||||||||||||||||||||||||||
Total borrowed funds | 379,887 | 13,626 | 3.59 | 230,246 | 13,116 | 5.70 | 332,987 | 14,095 | 4.23 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,099,978 | 25,551 | .50 | 4,923,985 | 27,682 | .56 | 5,076,246 | 37,909 | .75 | |||||||||||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 1,507,944 | 1,333,199 | 1,142,236 | |||||||||||||||||||||||||||||||||
Other liabilities | 107,523 | 84,506 | 64,986 | |||||||||||||||||||||||||||||||||
Total liabilities | 6,715,445 | 6,341,690 | 6,283,468 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 720,201 | 732,309 | 581,583 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,435,646 | $ | 7,073,999 | $ | 6,865,051 | ||||||||||||||||||||||||||||||
Net interest revenue | $ | 224,418 | $ | 219,641 | $ | 229,758 | ||||||||||||||||||||||||||||||
Net interest-rate spread | 3.13 | % | 3.16 | % | 3.34 | % | ||||||||||||||||||||||||||||||
Net interest margin (4) | 3.26 | % | 3.30 | % | 3.51 | % |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized gains of $3.36 million, $4.36 million and $23.6 million in 2014, 2013 and 2012, respectively, are included in other assets for purposes of this presentation. |
34 |
Table 3 - Change in Interest Revenue and Interest Expense | ||||||||||||||||||||||||
(in thousands, taxable equivalent) | ||||||||||||||||||||||||
2014 Compared to 2013 | 2013 Compared to 2012 | |||||||||||||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||||||||||||
due to changes in | due to changes in | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 9,030 | $ | (13,269 | ) | $ | (4,239 | ) | $ | 4,552 | $ | (20,979 | ) | $ | (16,427 | ) | ||||||||
Taxable securities | 1,650 | 5,774 | 7,424 | 2,118 | (5,444 | ) | (3,326 | ) | ||||||||||||||||
Tax-exempt securities | (123 | ) | (22 | ) | (145 | ) | (163 | ) | (48 | ) | (211 | ) | ||||||||||||
Federal funds sold and other interest-earning assets | (1,145 | ) | 751 | (394 | ) | (1,656 | ) | 1,276 | (380 | ) | ||||||||||||||
Total interest-earning assets | 9,412 | (6,766 | ) | 2,646 | 4,851 | (25,195 | ) | (20,344 | ) | |||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | 143 | (251 | ) | (108 | ) | (12 | ) | (278 | ) | (290 | ) | |||||||||||||
Money Market | 131 | 719 | 850 | 350 | (658 | ) | (308 | ) | ||||||||||||||||
Savings deposits | 16 | (68 | ) | (52 | ) | 18 | (35 | ) | (17 | ) | ||||||||||||||
Time deposits less than $100,000 | (878 | ) | (1,336 | ) | (2,214 | ) | (1,465 | ) | (2,473 | ) | (3,938 | ) | ||||||||||||
Time deposits greater than $100,000 | (732 | ) | (1,010 | ) | (1,742 | ) | (1,067 | ) | (1,845 | ) | (2,912 | ) | ||||||||||||
Brokered deposits | (125 | ) | 750 | 625 | 360 | (2,143 | ) | (1,783 | ) | |||||||||||||||
Total interest-bearing deposits | (1,445 | ) | (1,196 | ) | (2,641 | ) | (1,816 | ) | (7,432 | ) | (9,248 | ) | ||||||||||||
Federal funds purchased, repurchase agreements & other short-term borrowings | 237 | (148 | ) | 89 | (477 | ) | (439 | ) | (916 | ) | ||||||||||||||
Federal Home Loan Bank advances | 630 | 214 | 844 | (427 | ) | (412 | ) | (839 | ) | |||||||||||||||
Long-term debt | (101 | ) | (322 | ) | (423 | ) | 281 | 495 | 776 | |||||||||||||||
Total borrowed funds | 766 | (256 | ) | 510 | (623 | ) | (356 | ) | (979 | ) | ||||||||||||||
Total interest-bearing liabilities | (679 | ) | (1,452 | ) | (2,131 | ) | (2,439 | ) | (7,788 | ) | (10,227 | ) | ||||||||||||
Increase (decrease) in net interest revenue | $ | 10,091 | $ | (5,314 | ) | $ | 4,777 | $ | 7,290 | $ | (17,407 | ) | $ | (10,117 | ) | |||||||||
35 |
Table 4 - Fee Revenue | ||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||
(in thousands) | ||||||||||||||||
Change | ||||||||||||||||
2014 | 2013 | 2012 | 2014-2013 | |||||||||||||
Overdraft fees | $ | 11,871 | $ | 12,425 | $ | 13,302 | (4 | )% | ||||||||
ATM and debit card fees | 15,295 | 14,509 | 13,108 | 5 | ||||||||||||
Other service charges and fees | 5,907 | 5,063 | 5,260 | 17 | ||||||||||||
Service charges and fees | 33,073 | 31,997 | 31,670 | 3 | ||||||||||||
Mortgage loan and related fees | 7,520 | 9,925 | 10,483 | (24 | ) | |||||||||||
Brokerage fees | 4,807 | 4,465 | 3,082 | 8 | ||||||||||||
Gains from sales of SBA loans | 2,615 | — | — | |||||||||||||
Customer derivatives | 729 | 1,599 | 524 | (54 | ) | |||||||||||
Securities gains, net | 4,871 | 186 | 7,078 | |||||||||||||
Losses on prepayment of borrowings | (4,446 | ) | — | (6,681 | ) | |||||||||||
Other | 6,385 | 8,426 | 9,956 | (24 | ) | |||||||||||
Total fee revenue | $ | 55,554 | $ | 56,598 | $ | 56,112 | (2 | ) |
36 |
Table 5 - Operating Expenses | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(in thousands) | |||||||||||||||||
Change | |||||||||||||||||
2014 | 2013 | 2012 | 2014-2013 | ||||||||||||||
Salaries and employee benefits | $ | 100,941 | $ | 96,233 | $ | 96,026 | 5 | % | |||||||||
Communications and equipment | 12,523 | 13,233 | 12,940 | (5 | ) | ||||||||||||
Occupancy | 13,513 | 13,930 | 14,304 | (3 | ) | ||||||||||||
Advertising and public relations | 3,461 | 3,718 | 3,855 | (7 | ) | ||||||||||||
Postage, printing and supplies | 3,542 | 3,283 | 3,899 | 8 | |||||||||||||
Professional fees | 7,907 | 9,617 | 8,792 | (18 | ) | ||||||||||||
Foreclosed property - foreclosure and carrying costs | 1,338 | 3,163 | 5,118 | (58 | ) | ||||||||||||
Foreclosed property - writedowns and losses from sales | (704 | ) | 4,706 | 8,875 | (115 | ) | |||||||||||
FDIC assessments and other regulatory charges | 4,792 | 9,219 | 10,097 | (48 | ) | ||||||||||||
Amortization of intangibles | 1,348 | 2,031 | 2,917 | (34 | ) | ||||||||||||
Other | 14,204 | 15,171 | 19,951 | (6 | ) | ||||||||||||
Total operating expenses | $ | 162,865 | $ | 174,304 | $ | 186,774 | (7 | ) |
37 |
38 |
Table 6 - Quarterly Fee Revenue | |||||||
(in thousands) |
Three Months Ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | Change | ||||||||||
Overdraft fees | $ | 2,936 | $ | 3,199 | (8 | ) % | ||||||
ATM and debit card fees | 3,977 | 3,691 | 8 | |||||||||
Other service charges and fees | 1,533 | 1,276 | 20 | |||||||||
Service charges and fees | 8,446 | 8,166 | 3 | |||||||||
Mortgage loan and related fees | 2,111 | 1,713 | 23 | |||||||||
Brokerage fees | 1,176 | 1,361 | (14 | ) | ||||||||
Gains on sales of SBA loans | 926 | — | — | |||||||||
Customer derivatives | 78 | 417 | (81 | ) | ||||||||
Securities gains, net | 208 | 70 | 197 | |||||||||
Other | 1,878 | 1,792 | 5 | |||||||||
Total fee revenue | $ | 14,823 | $ | 13,519 | 10 |
39 |
Table 7 - Quarterly Operating Expenses | |||||||||
(in thousands) |
Three Months Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | Change | |||||||||||
Salaries and employee benefits | $ | 26,592 | $ | 24,817 | 7 | % | |||||||
Communications and equipment | 3,153 | 3,414 | (8 | ) | |||||||||
Occupancy | 3,448 | 3,735 | (8 | ) | |||||||||
Advertising and public relations | 802 | 781 | 3 | ||||||||||
Postage, printing and supplies | 1,086 | 882 | 23 | ||||||||||
Professional fees | 2,034 | 2,102 | (3 | ) | |||||||||
Foreclosed property - foreclosure and carrying costs | 317 | 626 | (49 | ) | |||||||||
Foreclosed property - writedowns, (gains) losses from sales, net | (186 | ) | (435 | ) | (57 | ) | |||||||
FDIC assessments and other regulatory charges | 883 | 1,804 | (51 | ) | |||||||||
Amortization of intangibles | 287 | 408 | (30 | ) | |||||||||
Other | 3,503 | 3,480 | 1 | ||||||||||
Total operating expenses | $ | 41,919 | $ | 41,614 | 1 |
40 |
Table 8 - Loans Outstanding | |||||||||||||||
As of December 31, | |||||||||||||||
(in thousands) |
Loans by Category | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Owner occupied commercial real estate | $ | 1,163,480 | $ | 1,133,543 | $ | 1,131,544 | $ | 1,111,502 | $ | 980,673 | ||||||||||
Income producing commercial real estate | 598,537 | 623,167 | 681,821 | 709,912 | 780,751 | |||||||||||||||
Commercial & industrial | 710,256 | 471,961 | 458,246 | 428,249 | 441,518 | |||||||||||||||
Commercial construction | 196,030 | 148,903 | 154,769 | 164,155 | 296,582 | |||||||||||||||
Total commercial | 2,668,303 | 2,377,574 | 2,426,380 | 2,413,818 | 2,499,524 | |||||||||||||||
Residential mortgage | 865,789 | 875,077 | 829,566 | 834,759 | 943,404 | |||||||||||||||
Home equity lines of credit | 465,872 | 440,887 | 384,637 | 300,143 | 335,376 | |||||||||||||||
Residential construction | 298,627 | 328,579 | 381,677 | 448,391 | 695,166 | |||||||||||||||
Consumer installment | 104,899 | 111,045 | 114,309 | 112,503 | 130,656 | |||||||||||||||
Indirect auto | 268,629 | 196,104 | 38,439 | — | — | |||||||||||||||
Total loans | $ | 4,672,119 | $ | 4,329,266 | $ | 4,175,008 | $ | 4,109,614 | $ | 4,604,126 | ||||||||||
Loans by Market | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
North Georgia | $ | 1,163,479 | $ | 1,240,234 | $ | 1,363,723 | $ | 1,425,811 | $ | 1,688,586 | ||||||||||
Atlanta MSA | 1,281,753 | 1,275,139 | 1,249,470 | 1,219,652 | 1,310,222 | |||||||||||||||
North Carolina | 552,766 | 571,971 | 579,085 | 597,446 | 701,798 | |||||||||||||||
Coastal Georgia | 455,709 | 423,045 | 400,022 | 346,189 | 335,020 | |||||||||||||||
Gainesville MSA | 257,449 | 254,655 | 261,406 | 264,567 | 312,049 | |||||||||||||||
East Tennessee | 280,312 | 279,587 | 282,863 | 255,949 | 256,451 | |||||||||||||||
South Carolina / Specialized Lending | 412,022 | 88,531 | — | — | — | |||||||||||||||
Indirect auto | 268,629 | 196,104 | 38,439 | — | — | |||||||||||||||
Total loans | $ | 4,672,119 | $ | 4,329,266 | $ | 4,175,008 | $ | 4,109,614 | $ | 4,604,126 |
Table 9 - Loan Portfolio Maturity | ||||||||||||
As of December 31, 2014 | ||||||||||||
(in thousands) |
Rate Structure for Loans | ||||||||||||||||||||||||
Maturity | Maturing Over One Year | |||||||||||||||||||||||
One Year | One through | Over Five | Fixed | Floating | ||||||||||||||||||||
or Less | Five Years | Years | Total | Rate | Rate | |||||||||||||||||||
Commercial (commercial and industrial) | $ | 162,708 | $ | 412,795 | $ | 134,753 | $ | 710,256 | $ | 243,282 | $ | 304,266 | ||||||||||||
Construction (commercial and residential) | 165,002 | 247,986 | 81,669 | 494,657 | 168,778 | 160,877 | ||||||||||||||||||
Total | $ | 327,710 | $ | 660,781 | $ | 216,422 | $ | 1,204,913 | $ | 412,060 | $ | 465,143 |
41 |
Table 10 - Performing Substandard Loans | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
By Category | ||||||||||||||||||||
Owner occupied commercial real estate | $ | 46,401 | $ | 43,083 | $ | 64,936 | $ | 78,969 | $ | 85,723 | ||||||||||
Income producing commercial real estate | 20,560 | 34,642 | 52,607 | $ | 64,089 | $ | 71,042 | |||||||||||||
Commercial & industrial | 7,863 | 9,589 | 18,477 | 15,753 | 16,767 | |||||||||||||||
Commercial construction | 3,566 | 16,758 | 19,285 | 18,510 | 90,745 | |||||||||||||||
Total commercial | 78,390 | 104,072 | 155,305 | 177,321 | 264,277 | |||||||||||||||
Residential mortgage | 31,831 | 44,022 | 55,355 | 65,649 | 74,438 | |||||||||||||||
Home equity | 5,296 | 7,967 | 9,824 | 10,793 | 11,705 | |||||||||||||||
Residential construction | 10,920 | 14,104 | 37,804 | 71,955 | 158,770 | |||||||||||||||
Consumer installment | 1,382 | 2,538 | 3,653 | 2,751 | 2,957 | |||||||||||||||
Indirect auto | 574 | — | — | — | — | |||||||||||||||
Total | $ | 128,393 | $ | 172,703 | $ | 261,941 | $ | 328,469 | $ | 512,147 | ||||||||||
By Market | ||||||||||||||||||||
North Georgia | $ | 55,821 | $ | 69,510 | $ | 105,851 | $ | 134,945 | $ | 212,992 | ||||||||||
Atlanta MSA | 31,596 | 43,171 | 77,630 | 99,453 | 185,327 | |||||||||||||||
North Carolina | 16,479 | 18,954 | 28,657 | 40,302 | 42,335 | |||||||||||||||
Coastal Georgia | 15,642 | 18,561 | 17,421 | 24,985 | 29,223 | |||||||||||||||
Gainesville MSA | 1,109 | 14,916 | 19,251 | 17,338 | 33,962 | |||||||||||||||
East Tennessee | 5,933 | 7,591 | 13,131 | 11,446 | 8,308 | |||||||||||||||
South Carolina / Specialized Lending | 1,239 | — | — | — | — | |||||||||||||||
Indirect auto | 574 | — | — | — | — | |||||||||||||||
Total loans | $ | 128,393 | $ | 172,703 | $ | 261,941 | $ | 328,469 | $ | 512,147 |
42 |
Table 11 - Allocation of Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||||||||
Amount | %* | Amount | %* | Amount | %* | Amount | %* | Amount | %* | |||||||||||||||||||||||||||||||
Commercial (secured by real estate) | $ | 26,337 | 38 | $ | 24,338 | 41 | $ | 27,847 | 43 | $ | 31,644 | 44 | $ | 31,191 | 38 | |||||||||||||||||||||||||
Commercial & industrial | 3,255 | 15 | 6,527 | 11 | 5,537 | 11 | 5,681 | 10 | 7,580 | 10 | ||||||||||||||||||||||||||||||
Commercial construction | 4,747 | 4 | 3,669 | 3 | 8,389 | 4 | 6,097 | 4 | 6,780 | 6 | ||||||||||||||||||||||||||||||
Total commercial | 34,339 | 57 | 34,534 | 55 | 41,773 | 58 | 43,422 | 58 | 45,551 | 54 | ||||||||||||||||||||||||||||||
Residential mortgage | 24,885 | 29 | 20,974 | 30 | 26,642 | 29 | 29,076 | 28 | 22,305 | 28 | ||||||||||||||||||||||||||||||
Residential construction | 10,603 | 6 | 12,532 | 8 | 26,662 | 9 | 30,379 | 11 | 92,571 | 15 | ||||||||||||||||||||||||||||||
Consumer installment | 1,792 | 8 | 2,479 | 7 | 2,747 | 4 | 2,124 | 3 | 3,030 | 3 | ||||||||||||||||||||||||||||||
Unallocated | — | 6,243 | 9,313 | 9,467 | 11,238 | |||||||||||||||||||||||||||||||||||
Total allowance for loan losses | 71,619 | 100 | 76,762 | 100 | 107,137 | 100 | 114,468 | 100 | 174,695 | 100 | ||||||||||||||||||||||||||||||
Allowance for unfunded commitments | 1,930 | 2,165 | — | — | — | |||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 73,549 | $ | 78,927 | $ | 107,137 | $ | 114,468 | $ | 174,695 |
43 |
Table 12 - Allowance for Credit Losses | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Balance beginning of period | $ | 76,762 | $ | 107,137 | $ | 114,468 | $ | 174,695 | $ | 155,602 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Owner occupied commercial real estate | 3,136 | 24,965 | 10,280 | 50,401 | 21,646 | |||||||||||||||
Income producing commercial real estate | 1,611 | 11,505 | 12,782 | 9,067 | 11,947 | |||||||||||||||
Commercial & industrial | 2,145 | 18,914 | 2,424 | 24,890 | 10,837 | |||||||||||||||
Commercial construction | 235 | 6,483 | 5,411 | 55,730 | 9,993 | |||||||||||||||
Residential mortgage | 7,502 | 8,840 | 12,885 | 46,439 | 25,364 | |||||||||||||||
Home equity lines of credit | 2,314 | 3,437 | 4,377 | 7,268 | 3,442 | |||||||||||||||
Residential construction | 3,176 | 23,049 | 24,260 | 118,916 | 136,666 | |||||||||||||||
Consumer installment | 2,008 | 2,184 | 2,198 | 3,594 | 4,828 | |||||||||||||||
Indirect auto | 540 | 277 | 16 | — | — | |||||||||||||||
Total loans charged-off | 22,667 | 99,654 | 74,633 | 316,305 | 224,723 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Owner occupied commercial real estate | 3,056 | 1,305 | 557 | 222 | 1,167 | |||||||||||||||
Income producing commercial real estate | 725 | 640 | 135 | 226 | — | |||||||||||||||
Commercial & industrial | 1,698 | 1,888 | 1,104 | 967 | 1,762 | |||||||||||||||
Commercial construction | 6 | 69 | 111 | 203 | 431 | |||||||||||||||
Residential mortgage | 1,110 | 611 | 675 | 660 | 838 | |||||||||||||||
Home equity lines of credit | 287 | 104 | 124 | 78 | 29 | |||||||||||||||
Residential construction | 627 | 173 | 1,272 | 1,678 | 15,370 | |||||||||||||||
Consumer installment | 1,226 | 1,114 | 824 | 1,044 | 1,219 | |||||||||||||||
Indirect auto | 54 | 40 | — | — | — | |||||||||||||||
Total recoveries | 8,789 | 5,944 | 4,802 | 5,078 | 20,816 | |||||||||||||||
Net charge-offs | 13,878 | 93,710 | 69,831 | 311,227 | 203,907 | |||||||||||||||
Provision for loan losses | 8,735 | 63,335 | 62,500 | 251,000 | 223,000 | |||||||||||||||
Allowance for loan losses at end of period | 71,619 | 76,762 | 107,137 | 114,468 | 174,695 | |||||||||||||||
Allowance for unfunded commitments at beginning of period | 2,165 | — | — | — | — | |||||||||||||||
Provision for unfunded commitments | (235 | ) | 2,165 | — | — | — | ||||||||||||||
Allowance for unfunded commitments at end of period | 1,930 | 2,165 | — | — | — | |||||||||||||||
Allowance for credit losses | $ | 73,549 | $ | 78,927 | $ | 107,137 | $ | 114,468 | $ | 174,695 | ||||||||||
Total loans (1): | ||||||||||||||||||||
At year-end | $ | 4,672,119 | $ | 4,329,266 | $ | 4,175,008 | $ | 4,109,614 | $ | 4,604,126 | ||||||||||
Average | 4,440,868 | 4,228,235 | 4,123,530 | 4,244,305 | 4,884,330 | |||||||||||||||
Allowance for loan losses as a percentage of year- | ||||||||||||||||||||
end loans | 1.53 | % | 1.77 | % | 2.57 | % | 2.79 | % | 3.79 | % | ||||||||||
As a percentage of average loans: | ||||||||||||||||||||
Net charge-offs | .31 | 2.22 | 1.69 | 7.33 | 4.17 | |||||||||||||||
Provision for loan losses | .20 | 1.50 | 1.52 | 5.91 | 4.57 |
44 |
Table 13 - Nonperforming Assets | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Nonaccrual loans (NPLs) | $ | 17,881 | $ | 26,819 | $ | 109,894 | $ | 127,479 | $ | 179,094 | ||||||||||
Foreclosed properties | 1,726 | 4,221 | 18,264 | 32,859 | 142,208 | |||||||||||||||
Total nonperforming assets (NPAs) | $ | 19,607 | $ | 31,040 | $ | 128,158 | $ | 160,338 | $ | 321,302 | ||||||||||
NPLs as a percentage of total loans | .38 | % | .62 | % | 2.63 | % | 3.10 | % | 3.89 | % | ||||||||||
NPAs as a percentage of loans and foreclosed properties | .42 | .72 | 3.06 | 3.87 | 6.77 | |||||||||||||||
NPAs as a percentage of total assets | .26 | .42 | 1.88 | 2.30 | 4.42 |
45 |
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | |||||||||||||||||||||||||||||||||||||
Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||||||||||||
BY CATEGORY | ||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 4,133 | $ | 355 | $ | 4,488 | $ | 2,156 | $ | 1,024 | $ | 3,180 | $ | 2,975 | $ | 653 | $ | 3,628 | $ | 3,868 | $ | 1,167 | $ | 5,035 | ||||||||||||||||||||||||
Income producing commercial real estate | 717 | — | 717 | 1,742 | 42 | 1,784 | 1,032 | 242 | 1,274 | 1,278 | 1,645 | 2,923 | ||||||||||||||||||||||||||||||||||||
Commercial & industrial | 1,571 | — | 1,571 | 1,593 | — | 1,593 | 1,102 | — | 1,102 | 822 | — | 822 | ||||||||||||||||||||||||||||||||||||
Commercial construction | 83 | 15 | 98 | 148 | — | 148 | 95 | — | 95 | 479 | — | 479 | ||||||||||||||||||||||||||||||||||||
Total commercial | 6,504 | 370 | 6,874 | 5,639 | 1,066 | 6,705 | 5,204 | 895 | 6,099 | 6,447 | 2,812 | 9,259 | ||||||||||||||||||||||||||||||||||||
Residential mortgage | 8,196 | 1,183 | 9,379 | 8,350 | 1,769 | 10,119 | 10,201 | 1,426 | 11,627 | 13,307 | 2,146 | 15,453 | ||||||||||||||||||||||||||||||||||||
Home equity | 695 | 40 | 735 | 720 | 90 | 810 | 510 | 128 | 638 | 1,106 | 362 | 1,468 | ||||||||||||||||||||||||||||||||||||
Residential construction | 2,006 | 133 | 2,139 | 3,543 | 221 | 3,764 | 4,248 | 520 | 4,768 | 3,805 | 274 | 4,079 | ||||||||||||||||||||||||||||||||||||
Consumer installment | 134 | — | 134 | 139 | — | 139 | 171 | — | 171 | 291 | — | 291 | ||||||||||||||||||||||||||||||||||||
Indirect auto | 346 | — | 346 | 354 | — | 354 | 390 | — | 390 | 294 | — | 294 | ||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 17,881 | $ | 1,726 | $ | 19,607 | $ | 18,745 | $ | 3,146 | $ | 21,891 | $ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | ||||||||||||||||||||||||
Balance as a % of | ||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal | 69.9 | % | 54.1 | % | 68.1 | % | 68.6 | % | 54.5 | % | 66.1 | % | 66.5 | % | 50.4 | % | 63.9 | % | 65.8 | % | 53.9 | % | 63.2 | % | ||||||||||||||||||||||||
BY MARKET | ||||||||||||||||||||||||||||||||||||||||||||||||
North Georgia | $ | 5,669 | $ | 711 | $ | 6,380 | $ | 7,392 | $ | 1,717 | $ | 9,109 | $ | 8,216 | $ | 1,392 | $ | 9,608 | $ | 12,166 | $ | 2,058 | $ | 14,224 | ||||||||||||||||||||||||
Atlanta MSA | 1,837 | 372 | 2,209 | 1,724 | 364 | 2,088 | 3,883 | 510 | 4,393 | 2,916 | 904 | 3,820 | ||||||||||||||||||||||||||||||||||||
North Carolina | 5,221 | 234 | 5,455 | 4,919 | 398 | 5,317 | 5,314 | 615 | 5,929 | 6,501 | 866 | 7,367 | ||||||||||||||||||||||||||||||||||||
Coastal Georgia | 799 | 105 | 904 | 781 | 160 | 941 | 782 | 80 | 862 | 800 | 1,607 | 2,407 | ||||||||||||||||||||||||||||||||||||
Gainesville MSA | 1,310 | 81 | 1,391 | 1,403 | 85 | 1,488 | 921 | 49 | 970 | 1,145 | — | 1,145 | ||||||||||||||||||||||||||||||||||||
East Tennessee | 1,414 | 201 | 1,615 | 1,227 | 245 | 1,472 | 1,218 | 323 | 1,541 | 1,428 | 159 | 1,587 | ||||||||||||||||||||||||||||||||||||
South Carolina / Specialized Lending | 1,285 | 22 | 1,307 | 945 | 177 | 1,122 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Indirect auto | 346 | — | 346 | 354 | — | 354 | 390 | — | 390 | 294 | — | 294 | ||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 17,881 | $ | 1,726 | $ | 19,607 | $ | 18,745 | $ | 3,146 | $ | 21,891 | $ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | ||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | |||||||||||||||||||||||||||||||||||||
Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||||||||||||
BY CATEGORY | ||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 5,822 | $ | 832 | $ | 6,654 | $ | 6,358 | $ | 591 | $ | 6,949 | $ | 5,283 | $ | 547 | $ | 5,830 | $ | 8,142 | $ | 4,750 | $ | 12,892 | ||||||||||||||||||||||||
Income producing commercial real estate | 2,518 | — | 2,518 | 1,657 | 139 | 1,796 | 1,954 | — | 1,954 | 9,162 | 834 | 9,996 | ||||||||||||||||||||||||||||||||||||
Commercial & industrial | 427 | — | 427 | 609 | — | 609 | 548 | — | 548 | 29,545 | — | 29,545 | ||||||||||||||||||||||||||||||||||||
Commercial construction | 361 | — | 361 | 343 | 376 | 719 | 504 | 376 | 880 | 22,359 | 3,027 | 25,386 | ||||||||||||||||||||||||||||||||||||
Total commercial | 9,128 | 832 | 9,960 | 8,967 | 1,106 | 10,073 | 8,289 | 923 | 9,212 | 69,208 | 8,611 | 77,819 | ||||||||||||||||||||||||||||||||||||
Residential mortgage | 11,730 | 2,684 | 14,414 | 11,335 | 1,679 | 13,014 | 12,847 | 1,303 | 14,150 | 10,901 | 3,463 | 14,364 | ||||||||||||||||||||||||||||||||||||
Home equity | 1,448 | 389 | 1,837 | 1,169 | 475 | 1,644 | 1,491 | 140 | 1,631 | 916 | — | 916 | ||||||||||||||||||||||||||||||||||||
Residential construction | 4,264 | 316 | 4,580 | 4,097 | 1,207 | 5,304 | 4,838 | 1,570 | 6,408 | 14,592 | 4,660 | 19,252 | ||||||||||||||||||||||||||||||||||||
Consumer installment | 249 | — | 249 | 520 | — | 520 | 399 | — | 399 | 389 | — | 389 | ||||||||||||||||||||||||||||||||||||
Indirect auto | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | $ | 96,006 | $ | 16,734 | $ | 112,740 | ||||||||||||||||||||||||
Balance as a % of | ||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal | 65.3 | % | 44.5 | % | 61.4 | % | 61.6 | % | 41.5 | % | 57.6 | % | 62.6 | % | 31.6 | % | 55.8 | % | 66.3 | % | 45.0 | % | 62.0 | % | ||||||||||||||||||||||||
BY MARKET | ||||||||||||||||||||||||||||||||||||||||||||||||
North Georgia | $ | 12,352 | $ | 2,494 | $ | 14,846 | $ | 13,652 | $ | 1,726 | $ | 15,378 | $ | 12,830 | $ | 1,617 | $ | 14,447 | $ | 63,210 | $ | 6,616 | $ | 69,826 | ||||||||||||||||||||||||
Atlanta MSA | 2,830 | 684 | 3,514 | 3,096 | 1,026 | 4,122 | 3,803 | 1,197 | 5,000 | 17,380 | 3,524 | 20,904 | ||||||||||||||||||||||||||||||||||||
North Carolina | 6,567 | 683 | 7,250 | 5,680 | 762 | 6,442 | 6,512 | 295 | 6,807 | 8,519 | 2,533 | 11,052 | ||||||||||||||||||||||||||||||||||||
Coastal Georgia | 2,342 | 173 | 2,515 | 995 | 928 | 1,923 | 2,588 | 627 | 3,215 | 3,523 | 1,449 | 4,972 | ||||||||||||||||||||||||||||||||||||
Gainesville MSA | 928 | — | 928 | 1,036 | — | 1,036 | 1,008 | — | 1,008 | 911 | 370 | 1,281 | ||||||||||||||||||||||||||||||||||||
East Tennessee | 1,800 | 187 | 1,987 | 1,629 | 25 | 1,654 | 1,123 | 200 | 1,323 | 2,463 | 2,242 | 4,705 | ||||||||||||||||||||||||||||||||||||
South Carolina / Specialized Lending | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Indirect auto | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 26,088 | $ | 4,467 | $ | 30,555 | $ | 27,864 | $ | 3,936 | $ | 31,800 | $ | 96,006 | $ | 16,734 | $ | 112,740 |
46 |
2014 (1) | 2013 (1) | 2012 (1) | ||||||||||||||||||||||||||||||||||
Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | Nonaccrual | Foreclosed | Total | ||||||||||||||||||||||||||||
Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | ||||||||||||||||||||||||||||
Beginning Balance | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 109,894 | $ | 18,264 | $ | 128,158 | $ | 127,479 | $ | 32,859 | $ | 160,338 | ||||||||||||||||||
Loans placed on non-accrual | 33,637 | — | 33,637 | 43,867 | — | 43,867 | 112,547 | — | 112,547 | |||||||||||||||||||||||||||
Payments received | (14,108 | ) | — | (14,108 | ) | (60,035 | ) | — | (60,035 | ) | (31,076 | ) | — | (31,076 | ) | |||||||||||||||||||||
Loan charge-offs | (19,374 | ) | — | (19,374 | ) | (44,444 | ) | — | (44,444 | ) | (65,064 | ) | — | (65,064 | ) | |||||||||||||||||||||
Foreclosures | (9,093 | ) | 9,093 | — | (22,463 | ) | 22,463 | — | (33,992 | ) | 33,992 | — | ||||||||||||||||||||||||
Capitalized costs | — | 209 | 209 | — | 116 | 116 | — | 1,047 | 1,047 | |||||||||||||||||||||||||||
Note / property sales | — | (12,501 | ) | (12,501 | ) | — | (31,915 | ) | (31,915 | ) | — | (40,759 | ) | (40,759 | ) | |||||||||||||||||||||
Write downs | — | (691 | ) | (691 | ) | — | (3,065 | ) | (3,065 | ) | — | (6,951 | ) | (6,951 | ) | |||||||||||||||||||||
Net gains (losses) on sales | — | 1,395 | 1,395 | — | (1,642 | ) | (1,642 | ) | — | (1,924 | ) | (1,924 | ) | |||||||||||||||||||||||
Ending Balance | $ | 17,881 | $ | 1,726 | $ | 19,607 | $ | 26,819 | $ | 4,221 | $ | 31,040 | $ | 109,894 | $ | 18,264 | $ | 128,158 | ||||||||||||||||||
(1) Excludes nonperforming loans and foreclosed property covered by loss sharing agreements with the FDIC related to the acquisition of SCB. |
47 |
Table 16 - Carrying Value of Investment Securities As of December 31, (in thousands) | ||||||||||||
December 31, 2014 | ||||||||||||
Available-for-Sale | Held-to-Maturity | Total Securities | ||||||||||
U.S. Treasuries | $ | 105,709 | $ | — | $ | 105,709 | ||||||
U.S. Government agencies | 36,299 | — | 36,299 | |||||||||
State and political subdivisions | 20,233 | 48,157 | 68,390 | |||||||||
Mortgage-backed securities | 996,820 | 367,110 | 1,363,930 | |||||||||
Corporate bonds | 165,628 | — | 165,628 | |||||||||
Asset-backed securities | 455,928 | — | 455,928 | |||||||||
Other | 2,117 | — | 2,117 | |||||||||
Total securities | $ | 1,782,734 | $ | 415,267 | $ | 2,198,001 | ||||||
December 31, 2013 | ||||||||||||
Available-for-Sale | Held-to-Maturity | Total Securities | ||||||||||
State and political subdivisions | $ | 23,242 | $ | 51,733 | $ | 74,975 | ||||||
Mortgage-backed securities | 1,145,347 | 428,009 | 1,573,356 | |||||||||
Corporate bonds | 250,296 | — | 250,296 | |||||||||
Asset-backed securities | 410,633 | — | 410,633 | |||||||||
Other | 2,699 | — | 2,699 | |||||||||
Total securities | $ | 1,832,217 | $ | 479,742 | $ | 2,311,959 |
48 |
Table 17 - Maturities of Time Deposits of $100,000 and Greater and Brokered Time Deposits | ||||||||
As of December 31, | ||||||||
(in thousands) | ||||||||
$100,000 and greater: | 2014 | 2013 | ||||||
Three months or less | $ | 120,167 | $ | 116,875 | ||||
Three to six months | 98,443 | 100,425 | ||||||
Six to twelve months | 182,936 | 195,064 | ||||||
Over one year | 106,682 | 176,325 | ||||||
Total | $ | 508,228 | $ | 588,689 | ||||
Brokered time deposits: | ||||||||
Three months or less | $ | — | $ | — | ||||
Three to six months | — | — | ||||||
Six to twelve months | — | — | ||||||
Over one year | 272,834 | 273,166 | ||||||
Total | $ | 272,834 | $ | 273,166 |
49 |
Table 18 - Short-Term Borrowings | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2014 | Period-end balance | Period end weighted- average interest rate | Maximum outstanding at any month-end | Average amounts outstanding during the year | Weighted- average rate for the year | |||||||||||||||
Federal funds purchased | $ | — | — | % | $ | 65,000 | $ | 22,795 | .32 | % | ||||||||||
Repurchase agreements | 6,000 | 4.00 | 55,075 | 28,568 | 3.81 | |||||||||||||||
Other | — | — | 40,000 | 23,178 | 4.30 | |||||||||||||||
$ | 6,000 | $ | 74,541 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Federal funds purchased | $ | — | — | % | $ | 70,000 | $ | 13,327 | .33 | % | ||||||||||
Repurchase agreements | 53,241 | 4.00 | 54,164 | 53,234 | 3.81 | |||||||||||||||
$ | 53,241 | $ | 66,561 | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Federal funds purchased | $ | — | — | % | $ | — | $ | 5,000 | .33 | % | ||||||||||
Repurchase agreements | 52,574 | 4.00 | 103,551 | 75,593 | 3.93 | |||||||||||||||
$ | 52,574 | $ | 80,593 |
50 |
Table 19 - Contractual Obligations and Other Commitments | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Maturity By Years | ||||||||||||||||||||
Total | 1 or Less | 1 to 3 | 3 to 5 | Over 5 | ||||||||||||||||
Contractual Cash Obligations | ||||||||||||||||||||
FHLB advances | $ | 270,125 | $ | 270,000 | $ | 125 | $ | — | $ | — | ||||||||||
Long-term debt | 129,865 | — | 35,000 | 40,000 | 54,865 | |||||||||||||||
Operating leases | 10,877 | 1,741 | 2,707 | 1,906 | 4,523 | |||||||||||||||
Total contractual cash obligations | $ | 410,867 | $ | 271,741 | $ | 37,832 | $ | 41,906 | $ | 59,388 | ||||||||||
Other Commitments | ||||||||||||||||||||
Lines of credit | $ | 878,160 | $ | 240,137 | $ | 123,768 | $ | 190,398 | $ | 323,857 | ||||||||||
Commercial letters of credit | 19,861 | 18,226 | 1,155 | 480 | — | |||||||||||||||
Uncertain tax positions | 4,195 | 585 | 839 | 374 | 2,397 | |||||||||||||||
Total other commitments | $ | 902,216 | $ | 258,948 | $ | 125,762 | $ | 191,252 | $ | 326,254 |
Table 20 - Expected Maturity of Available-for-Sale and Held-to-Maturity Investment Securities | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Maturity By Years | ||||||||||||||||||||
1 or Less | 1 to 5 | 5 to 10 | Over 10 | Total | ||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 105,709 | $ | — | $ | — | $ | 105,709 | ||||||||||
U.S. government agency securities | — | — | 36,299 | — | 36,299 | |||||||||||||||
State and political subdivisions | 6,405 | 10,771 | 2,165 | 892 | 20,233 | |||||||||||||||
Corporate bonds | 9,815 | 37,891 | 117,172 | 750 | 165,628 | |||||||||||||||
Asset-backed securities | 9,505 | 257,886 | 58,966 | 129,571 | 455,928 | |||||||||||||||
Other securities (1) | 8,204 | 582,576 | 214,909 | 193,248 | 998,937 | |||||||||||||||
Total securities available for sale | $ | 33,929 | $ | 994,833 | $ | 429,511 | $ | 324,461 | $ | 1,782,734 | ||||||||||
Weighted average yield (2) | 2.68 | % | 2.18 | % | 2.21 | % | 3.35 | % | 2.41 | % | ||||||||||
Held to Maturity | ||||||||||||||||||||
State and political subdivisions | $ | 1,000 | $ | 18,582 | $ | 19,573 | $ | 9,002 | $ | 48,157 | ||||||||||
Other securities (1) | — | 249,815 | 111,603 | 5,692 | 367,110 | |||||||||||||||
Total securities available for sale | $ | 1,000 | $ | 268,397 | $ | 131,176 | $ | 14,694 | $ | 415,267 | ||||||||||
Weighted average yield (2) | 4.00 | % | 3.00 | % | 3.17 | % | 4.96 | % | 3.12 | % | ||||||||||
Combined Portfolio | ||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 105,709 | $ | — | $ | — | $ | 105,709 | ||||||||||
U.S. governement agency securities | — | — | 36,299 | — | 36,299 | |||||||||||||||
State and political subdivisions | 7,405 | 29,353 | 21,738 | 9,894 | 68,390 | |||||||||||||||
Corporate bonds | 9,815 | 37,891 | 117,172 | 750 | 165,628 | |||||||||||||||
Asset-backed securities | 9,505 | 257,886 | 58,966 | 129,571 | 455,928 | |||||||||||||||
Other securities (1) | 8,204 | 832,391 | 326,512 | 198,940 | 1,366,046 | |||||||||||||||
Total securities available for sale | $ | 34,929 | $ | 1,263,230 | $ | 560,687 | $ | 339,155 | $ | 2,198,000 | ||||||||||
Weighted average yield (2) | 2.71 | % | 2.41 | % | 2.42 | % | 3.42 | % | 2.58 | % | ||||||||||
(1) Includes mortgage-backed securities | ||||||||||||||||||||
(2) Based on amortized cost, taxable equivalent basis |
51 |
52 |
Table 21 - Capital Ratios | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Regulatory | United Community Banks, Inc. (Consolidated) | United Community Bank | ||||||||||||||||||||||
Guidelines | ||||||||||||||||||||||||
Well | As of December 31, | As of December 31, | ||||||||||||||||||||||
Minimum | Capitalized | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Risk-based ratios: | ||||||||||||||||||||||||
Tier 1 capital | 4.0 | % | 6.0 | % | 12.05 | % | 12.74 | % | 12.84 | % | 13.55 | % | ||||||||||||
Total capital | 8.0 | 10.0 | 13.30 | 13.99 | 14.09 | 14.80 | ||||||||||||||||||
Leverage ratio | 3.0 | 5.0 | 8.69 | 9.08 | 9.25 | 9.61 | ||||||||||||||||||
Tier 1 capital | $ | 642,663 | $ | 649,162 | $ | 683,332 | $ | 686,687 | ||||||||||||||||
Total capital | 709,408 | 713,063 | 749,927 | 750,216 | ||||||||||||||||||||
Risk-weighted assets | 5,332,822 | 5,097,091 | 5,320,615 | 5,066,948 | ||||||||||||||||||||
Average total assets | 7,396,450 | 7,150,360 | 7,385,048 | 7,142,050 |
53 |
Table 22 - Interest Sensitivity | ||||||||
Increase (Decrease) in Net Interest Revenue from Base Scenario at December 31, | ||||||||
2014 | 2013 | |||||||
Change in Rates | Shock | Ramp | Shock | Ramp | ||||
200 basis point increase | 1.7% | 2.0% | 4.4% | 5.4% |
54 |
55 |
● | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; |
● | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
● | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. |
/s/ Jimmy C. Tallent | /s/ Rex S. Schuette | |||
Jimmy C. Tallent | Rex S. Schuette | |||
Chairman and Chief Executive Officer | Executive Vice President and | |||
Chief Financial Officer |
56 |
57 |
We have audited the accompanying consolidated statement of income, comprehensive income (loss), changes in shareholders’ equity, and cash flows for the year ended December 31, 2012 of United Community Banks, Inc. and subsidiaries (the “Company”). These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the results of operations and cash flows of United Community Banks, Inc. and subsidiaries for the year ended December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
58 |
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES |
Consolidated Statement of Income |
For the Years Ended December 31, 2014, 2013 and 2012 |
(in thousands, except per share data) |
2014 | 2013 | 2012 | ||||||||||
Interest revenue: | ||||||||||||
Loans, including fees | $ | 196,279 | $ | 200,893 | $ | 217,378 | ||||||
Investment securities: | ||||||||||||
Taxable | 47,755 | 40,331 | 43,657 | |||||||||
Tax exempt | 738 | 827 | 956 | |||||||||
Deposits in banks and short-term investments | 3,660 | 3,789 | 3,986 | |||||||||
Total interest revenue | 248,432 | 245,840 | 265,977 | |||||||||
Interest expense: | ||||||||||||
Deposits: | ||||||||||||
NOW | 1,651 | 1,759 | 2,049 | |||||||||
Money market | 3,060 | 2,210 | 2,518 | |||||||||
Savings | 81 | 133 | 150 | |||||||||
Time | 7,133 | 10,464 | 19,097 | |||||||||
Total deposit interest expense | 11,925 | 14,566 | 23,814 | |||||||||
Short-term borrowings | 2,160 | 2,071 | 2,987 | |||||||||
Federal Home Loan Bank advances | 912 | 68 | 907 | |||||||||
Long-term debt | 10,554 | 10,977 | 10,201 | |||||||||
Total interest expense | 25,551 | 27,682 | 37,909 | |||||||||
Net interest revenue | 222,881 | 218,158 | 228,068 | |||||||||
Provision for credit losses | 8,500 | 65,500 | 62,500 | |||||||||
Net interest revenue after provision for credit losses | 214,381 | 152,658 | 165,568 | |||||||||
Fee revenue: | ||||||||||||
Service charges and fees | 33,073 | 31,997 | 31,670 | |||||||||
Mortgage loan and other related fees | 7,520 | 9,925 | 10,483 | |||||||||
Brokerage fees | 4,807 | 4,465 | 3,082 | |||||||||
Securities gains, net | 4,871 | 186 | 7,078 | |||||||||
Losses on prepayment of borrowings | (4,446 | ) | — | (6,681 | ) | |||||||
Other | 9,729 | 10,025 | 10,480 | |||||||||
Total fee revenue | 55,554 | 56,598 | 56,112 | |||||||||
Total revenue | 269,935 | 209,256 | 221,680 | |||||||||
Operating expenses: | ||||||||||||
Salaries and employee benefits | 100,941 | 96,233 | 96,026 | |||||||||
Occupancy | 13,513 | 13,930 | 14,304 | |||||||||
Communications and equipment | 12,523 | 13,233 | 12,940 | |||||||||
FDIC assessments and other regulatory charges | 4,792 | 9,219 | 10,097 | |||||||||
Professional fees | 7,907 | 9,617 | 8,792 | |||||||||
Postage, printing and supplies | 3,542 | 3,283 | 3,899 | |||||||||
Advertising and public relations | 3,461 | 3,718 | 3,855 | |||||||||
Amortization of intangibles | 1,348 | 2,031 | 2,917 | |||||||||
Foreclosed property | 634 | 7,869 | 13,993 | |||||||||
Other | 14,204 | 15,171 | 19,951 | |||||||||
Total operating expenses | 162,865 | 174,304 | 186,774 | |||||||||
Income before income taxes | 107,070 | 34,952 | 34,906 | |||||||||
Income tax expense (benefit) | 39,450 | (238,188 | ) | 1,050 | ||||||||
Net income | 67,620 | 273,140 | 33,856 | |||||||||
Preferred stock dividends | 439 | 12,078 | 12,148 | |||||||||
Net income available to common shareholders | $ | 67,181 | $ | 261,062 | $ | 21,708 | ||||||
Income per common share: | ||||||||||||
Basic | $ | 1.11 | $ | 4.44 | $ | .38 | ||||||
Diluted | 1.11 | 4.44 | .38 | |||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 60,588 | 58,787 | 57,857 | |||||||||
Diluted | 60,590 | 58,845 | 57,857 |
59 |
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||
Consolidated Statement of Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||
Net income | $ | 107,070 | $ | (39,450 | ) | $ | 67,620 | $ | 34,952 | $ | 238,188 | $ | 273,140 | $ | 34,906 | $ | (1,050 | ) | $ | 33,856 | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||
Unrealized (losses) gains on available-for-sale securities: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during period | 12,550 | (4,676 | ) | 7,874 | (22,421 | ) | 8,475 | (13,946 | ) | 748 | (273 | ) | 475 | |||||||||||||||||||||||
Reclassification of securities from available-for-sale to held-to-maturity | — | — | — | 8,306 | (3,119 | ) | 5,187 | — | — | — | ||||||||||||||||||||||||||
Reclassification adjustment for gains included in net income | (4,871 | ) | 1,902 | (2,969 | ) | (186 | ) | 72 | (114 | ) | (7,078 | ) | 2,753 | (4,325 | ) | |||||||||||||||||||||
Adjustment of valuation allowance for the change in deferred taxes arising from unrealized gains and losses on available-for-sale securities and release of valuation allowance | — | — | — | — | (2,963 | ) | (2,963 | ) | - | (2,480 | ) | (2,480 | ) | |||||||||||||||||||||||
Net unrealized gains (losses) | 7,679 | (2,774 | ) | 4,905 | (14,301 | ) | 2,465 | (11,836 | ) | (6,330 | ) | — | (6,330 | ) | ||||||||||||||||||||||
Amortization of gains included in net income (loss) on available-for-sale securities transferred to held to maturity | 1,656 | (622 | ) | 1,034 | (731 | ) | 282 | (449 | ) | (1,988 | ) | 773 | (1,215 | ) | ||||||||||||||||||||||
Reclassification of securities from available- for-sale to held-to-maturity | — | — | — | (8,306 | ) | 3,119 | (5,187 | ) | — | — | — | |||||||||||||||||||||||||
Adjustment of valuation allowance for the change in deferred taxes arising from the amortization of gains included in net income on available-for-sale securities transferred to held-to-maturity and release of valuation allowance | — | — | — | — | 1,293 | 1,293 | — | (773 | ) | (773 | ) | |||||||||||||||||||||||||
Net unrealized gains (losses) | 1,656 | (622 | ) | 1,034 | (9,037 | ) | 4,694 | (4,343 | ) | (1,988 | ) | - | (1,988 | ) | ||||||||||||||||||||||
Amounts reclassified into net income on cash flow hedges | 2,010 | (782 | ) | 1,228 | (904 | ) | 352 | (552 | ) | (3,712 | ) | 1,444 | (2,268 | ) | ||||||||||||||||||||||
Unrealized losses on derivative financial instruments accounted for as cash flow hedges | (8,437 | ) | 3,282 | (5,155 | ) | 10,084 | (3,923 | ) | 6,161 | (8,739 | ) | 3,400 | (5,339 | ) | ||||||||||||||||||||||
Adjustment of valuation allowance for the change in deferred taxes arising from unrealized gains and losses and amortization of gains included in net income on cash flow hedges and release of valuation allowance | — | — | — | — | 13,698 | 13,698 | — | (4,844 | ) | (4,844 | ) | |||||||||||||||||||||||||
Net unrealized gains (losses) | (6,427 | ) | 2,500 | (3,927 | ) | 9,180 | 10,127 | 19,307 | (12,451 | ) | — | (12,451 | ) | |||||||||||||||||||||||
Net actuarial gain (loss) on defined benefit pension plan | (1,933 | ) | 752 | (1,181 | ) | 561 | (218 | ) | 343 | (177 | ) | 69 | (108 | ) | ||||||||||||||||||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | 365 | (142 | ) | 223 | 532 | (207 | ) | 325 | 615 | (240 | ) | 375 | ||||||||||||||||||||||||
Adjustment of valuation allowance for the change in deferred taxes arising from reclassification of unamortized prior service cost and actuarial losses and amortization of prior service cost and actuarial losses and release of valuation allowance | — | — | — | — | — | — | — | 171 | 171 | |||||||||||||||||||||||||||
Net defined benefit pension plan activity | (1,568 | ) | 610 | (958 | ) | 1,093 | (425 | ) | 668 | 438 | — | 438 | ||||||||||||||||||||||||
Total other comprehensive income (loss) | 1,340 | (286 | ) | 1,054 | (13,065 | ) | 16,861 | 3,796 | (20,331 | ) | — | (20,331 | ) | |||||||||||||||||||||||
Comprehensive income (loss) | $ | 108,410 | $ | (39,736 | ) | $ | 68,674 | $ | 21,887 | $ | 255,049 | $ | 276,936 | $ | 14,575 | $ | (1,050 | ) | $ | 13,525 |
60 |
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES | ||||||||
Consolidated Balance Sheet | ||||||||
As of December 31, 2014 and 2013 | ||||||||
(in thousands, except share data) | ||||||||
Assets | ||||||||
2014 | 2013 | |||||||
Cash and due from banks | $ | 77,180 | $ | 71,230 | ||||
Interest-bearing deposits in banks | 89,074 | 119,669 | ||||||
Short-term investments | 26,401 | 37,999 | ||||||
Cash and cash equivalents | 192,655 | 228,898 | ||||||
Securities available-for-sale | 1,782,734 | 1,832,217 | ||||||
Securities held-to-maturity (fair value $425,233 and $485,585) | 415,267 | 479,742 | ||||||
Mortgage loans held for sale | 13,737 | 10,319 | ||||||
Loans, net of unearned income | 4,672,119 | 4,329,266 | ||||||
Less allowance for loan losses | (71,619 | ) | (76,762 | ) | ||||
Loans, net | 4,600,500 | 4,252,504 | ||||||
Assets covered by loss sharing agreements with the FDIC | 3,315 | 22,882 | ||||||
Premises and equipment, net | 159,390 | 163,589 | ||||||
Bank owned life insurance | 81,294 | 80,670 | ||||||
Accrued interest receivable | 20,103 | 19,598 | ||||||
Net deferred tax asset | 215,503 | 258,518 | ||||||
Derivative financial instruments | 20,599 | 23,833 | ||||||
Other assets | 61,889 | 52,649 | ||||||
Total assets | $ | 7,566,986 | $ | 7,425,419 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand | $ | 1,574,317 | $ | 1,388,512 | ||||
NOW | 1,504,887 | 1,427,939 | ||||||
Money market | 1,273,283 | 1,227,575 | ||||||
Savings | 292,308 | 251,125 | ||||||
Time: | ||||||||
Less than $100,000 | 748,478 | 892,961 | ||||||
Greater than $100,000 | 508,228 | 588,689 | ||||||
Brokered | 425,011 | 424,704 | ||||||
Total deposits | 6,326,512 | 6,201,505 | ||||||
Repurchase agreements | 6,000 | 53,241 | ||||||
Federal Home Loan Bank advances | 270,125 | 120,125 | ||||||
Long-term debt | 129,865 | 129,865 | ||||||
Derivative financial instruments | 31,997 | 46,232 | ||||||
Unsettled securities purchases | 5,425 | 29,562 | ||||||
Accrued expenses and other liabilities | 57,485 | 49,174 | ||||||
Total liabilities | 6,827,409 | 6,629,704 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||
Series B, $1,000 stated value; 0 and 105,000 shares issued and outstanding | — | 105,000 | ||||||
Series D, $1,000 stated value; 0 and 16,613 shares issued and outstanding | — | 16,613 | ||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||
50,178,605 and 46,243,345 shares issued and outstanding | 50,178 | 46,243 | ||||||
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; | ||||||||
10,080,787 and 13,188,206 shares issued and outstanding | 10,081 | 13,188 | ||||||
Common stock issuable; 357,983 and 241,832 shares | 5,168 | 3,930 | ||||||
Capital surplus | 1,080,508 | 1,078,676 | ||||||
Accumulated deficit | (387,568 | ) | (448,091 | ) | ||||
Accumulated other comprehensive loss | (18,790 | ) | (19,844 | ) | ||||
Total shareholders’ equity | 739,577 | 795,715 | ||||||
Total liabilities and shareholders’ equity | $ | 7,566,986 | $ | 7,425,419 | ||||
See accompanying notes to consolidated financial statements. |
61 |
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Changes in Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||||||||||||||||||
(in thousands except share data) | ||||||||||||||||||||||||||||||||||||||||
Retained | Accumulated | |||||||||||||||||||||||||||||||||||||||
Non-Voting | Common | Earnings | Other | |||||||||||||||||||||||||||||||||||||
Preferred Stock | Common | Common | Stock | Capital | (Accumulated | Comprehensive | ||||||||||||||||||||||||||||||||||
Series A | Series B | Series D | Stock | Stock | Issuable | Surplus | Deficit) | (Loss) Income | Total | |||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 217 | $ | 177,092 | $ | 16,613 | $ | 41,647 | $ | 15,914 | $ | 3,233 | $ | 1,054,940 | $ | (730,861 | ) | $ | (3,309 | ) | $ | 575,486 | ||||||||||||||||||
Net income | 33,856 | 33,856 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (20,331 | ) | (20,331 | ) | ||||||||||||||||||||||||||||||||||||
Common stock issued to Dividend Reivnestment Plan and employee benefit plans (109,905 common shares) | 110 | 790 | 900 | |||||||||||||||||||||||||||||||||||||
Conversion of non-voting common stock to voting common stock (597,415 shares) | 597 | (597 | ) | — | ||||||||||||||||||||||||||||||||||||
Amortization of stock options and restricted stock | 1,976 | 1,976 | ||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock awards (64,839 common shares issued, 36,673 common shares deferred) | 65 | 155 | (220 | ) | — | |||||||||||||||||||||||||||||||||||
Deferred compensation plan, net | 201 | 201 | ||||||||||||||||||||||||||||||||||||||
Shares issued from deferred compensation plan (4,611 common shares) | 5 | (470 | ) | 465 | — | |||||||||||||||||||||||||||||||||||
Preferred stock dividends: | ||||||||||||||||||||||||||||||||||||||||
Series A | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||
Series B, including accretion | 1,465 | (10,465 | ) | (9,000 | ) | |||||||||||||||||||||||||||||||||||
Series D | (1,671 | ) | (1,671 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 217 | 178,557 | 16,613 | 42,424 | 15,317 | 3,119 | 1,057,951 | (709,153 | ) | (23,640 | ) | 581,405 | ||||||||||||||||||||||||||||
Net income | 273,140 | 273,140 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 3,796 | 3,796 | ||||||||||||||||||||||||||||||||||||||
Redemption of Series A preferred stock (21,700 shares) | (217 | ) | (217 | ) | ||||||||||||||||||||||||||||||||||||
Redemption of Series B preferred stock (75,000 shares) | (75,000 | ) | (75,000 | ) | ||||||||||||||||||||||||||||||||||||
Common stock issued to Dividend Reinvestment Plan and employee benefit plans (62,978 common shares) | 63 | 733 | 796 | |||||||||||||||||||||||||||||||||||||
Conversion of non-voting common stock to voting common stock (2,128,588 shares) | 2,129 | (2,129 | ) | |||||||||||||||||||||||||||||||||||||
Warrant exercise (1,551,126 shares) | 1,551 | 17,838 | 19,389 | |||||||||||||||||||||||||||||||||||||
Amortization of stock options and restricted stock | 3,045 | 3,045 | ||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock awards, net of shares surrendered to cover payroll taxes (55,328 common shares issued, 115,664 common shares deferred) | 55 | 1,693 | (1,929 | ) | (181 | ) | ||||||||||||||||||||||||||||||||||
Deferred compensation plan, net | 177 | 177 | ||||||||||||||||||||||||||||||||||||||
Shares issued from deferred compensation plan (21,455 common shares) | 21 | (1,059 | ) | 1,038 | — | |||||||||||||||||||||||||||||||||||
Preferred stock dividends: | ||||||||||||||||||||||||||||||||||||||||
Series A | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||
Series B, including accretion | 1,443 | (10,401 | ) | (8,958 | ) | |||||||||||||||||||||||||||||||||||
Series D | (1,665 | ) | (1,665 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | — | 105,000 | 16,613 | 46,243 | 13,188 | 3,930 | 1,078,676 | (448,091 | ) | (19,844 | ) | 795,715 | ||||||||||||||||||||||||||||
Net income | 67,620 | 67,620 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,054 | 1,054 | ||||||||||||||||||||||||||||||||||||||
Redemption of Series B preferred stock (105,000 shares) | (105,000 | ) | (105,000 | ) | ||||||||||||||||||||||||||||||||||||
Redemption of Series D preferred stock (16,613 shares) | (16,613 | ) | (16,613 | ) | ||||||||||||||||||||||||||||||||||||
Common stock issued at market (640,000 shares) | 640 | 11,566 | 12,206 | |||||||||||||||||||||||||||||||||||||
Common stock issued to Dividend Reinvestment Plan and employee benefit plans (28,070 common shares) | 28 | 441 | 469 | |||||||||||||||||||||||||||||||||||||
Conversion of non-voting common stock to voting common stock (3,107,419 shares) | 3,107 | (3,107 | ) | — | ||||||||||||||||||||||||||||||||||||
Warrant repurchase at fair value | (12,000 | ) | (12,000 | ) | ||||||||||||||||||||||||||||||||||||
Amortization of stock options and restricted stock | 4,304 | 4,304 | ||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock awards, net of shares surrendered to cover payroll taxes (146,548 common shares issued, 115,609 common shares deferred) | 147 | 1,274 | (2,736 | ) | (1,315 | ) | ||||||||||||||||||||||||||||||||||
Deferred compensation plan, net, including dividend equivalents | 234 | 234 | ||||||||||||||||||||||||||||||||||||||
Shares issued from deferred compensation plan (13,223 common shares) | 13 | (270 | ) | 257 | — | |||||||||||||||||||||||||||||||||||
Common stock dividends ($.11 per share) | (6,658 | ) | (6,658 | ) | ||||||||||||||||||||||||||||||||||||
Preferred stock dividends: | ||||||||||||||||||||||||||||||||||||||||
Series B | (159 | ) | (159 | ) | ||||||||||||||||||||||||||||||||||||
Series D | (280 | ) | (280 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | — | $ | 50,178 | $ | 10,081 | $ | 5,168 | $ | 1,080,508 | $ | (387,568 | ) | $ | (18,790 | ) | $ | 739,577 | ||||||||||||||||||
See accompanying notes to consolidated financial statements. |
62 |
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||
(in thousands) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating activities: | ||||||||||||
Net income | $ | 67,620 | $ | 273,140 | $ | 33,856 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation, amortization and accretion | 19,952 | 26,388 | 32,562 | |||||||||
Provision for credit losses | 8,500 | 65,500 | 62,500 | |||||||||
Stock based compensation | 4,304 | 3,045 | 1,976 | |||||||||
Deferred income tax expense (benefit) | 38,226 | (241,655 | ) | — | ||||||||
Securities gains, net | (4,871 | ) | (186 | ) | (7,078 | ) | ||||||
Losses on prepayment of borrowings | 4,446 | — | 6,681 | |||||||||
Net (gains) losses on sales and write downs of other real estate owned | (704 | ) | 4,706 | 8,875 | ||||||||
Change in assets and liabilities: | ||||||||||||
(Increase) decrease in other assets and accrued interest receivable | (16,774 | ) | (293 | ) | 43,738 | |||||||
(Decrease) increase in accrued expenses and other liabilities | (15,385 | ) | 42,505 | 4,908 | ||||||||
(Increase) decrease in mortgage loans held for sale | (3,418 | ) | 18,502 | (4,940 | ) | |||||||
Net cash provided by operating activities | 101,896 | 191,652 | 183,078 | |||||||||
Investing activities: | ||||||||||||
Investment securities held-to-maturity: | ||||||||||||
Proceeds from maturities and calls | 64,791 | 63,985 | 82,801 | |||||||||
Purchases | (173 | ) | (8,481 | ) | — | |||||||
Investment securities available-for-sale: | ||||||||||||
Proceeds from sales | 419,201 | 39,731 | 469,167 | |||||||||
Proceeds from maturities and calls | 224,302 | 477,060 | 629,896 | |||||||||
Purchases | (603,384 | ) | (818,256 | ) | (1,166,653 | ) | ||||||
Net increase in loans | (326,452 | ) | (358,858 | ) | (159,814 | ) | ||||||
Proceeds from loan sales | 4,561 | 91,913 | — | |||||||||
Net cash paid for acquisition | (31,261 | ) | — | — | ||||||||
Proceeds collected from FDIC under loss sharing agreements | 2,662 | 5,882 | 14,292 | |||||||||
Purchases of premises and equipment | (5,054 | ) | (8,143 | ) | (4,117 | ) | ||||||
Proceeds from sales of premises and equipment | 3,137 | 3,946 | 1,059 | |||||||||
Proceeds from sale of other real estate owned | 10,175 | 28,430 | 31,356 | |||||||||
Net cash used in investing activities | (237,495 | ) | (482,791 | ) | (102,013 | ) | ||||||
Financing activities: | ||||||||||||
Net increase (decrease) in deposits | 125,007 | 249,365 | (145,843 | ) | ||||||||
Net increase (decrease) in short-term borrowings | (51,687 | ) | 667 | (54,483 | ) | |||||||
Proceeds from Federal Home Loan Bank advances | 1,230,000 | 770,000 | 1,789,000 | |||||||||
Repayment of Federal Home Loan Bank advances | (1,080,000 | ) | (690,000 | ) | (1,791,701 | ) | ||||||
Repayment of long-term debt | — | (35,000 | ) | (30,500 | ) | |||||||
Proceeds from issuance of long-term debt | — | 40,000 | 35,000 | |||||||||
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans | 469 | 796 | 894 | |||||||||
Proceeds from issuance of common stock, net of offering costs | 12,206 | — | — | |||||||||
Proceeds from warrant exercise | — | 19,389 | — | |||||||||
Repurchase of outstanding warrant at fair value | (12,000 | ) | — | — | ||||||||
Retirement of preferred stock | (121,613 | ) | (75,217 | ) | — | |||||||
Cash dividends on common stock | (1,810 | ) | — | — | ||||||||
Cash dividends on Series A preferred stock | — | (15 | ) | (12 | ) | |||||||
Cash dividends on Series B preferred stock | (802 | ) | (9,440 | ) | (9,000 | ) | ||||||
Cash dividends on Series D preferred stock | (412 | ) | (1,657 | ) | (1,687 | ) | ||||||
Net cash provided by (used in) financing activities | 99,358 | 268,888 | (208,332 | ) | ||||||||
Net change in cash and cash equivalents | (36,241 | ) | (22,251 | ) | (127,267 | ) | ||||||
Cash and cash equivalents at beginning of year | 228,898 | 251,149 | 378,416 | |||||||||
Cash and cash equivalents at end of year | $ | 192,657 | $ | 228,898 | $ | 251,149 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 25,669 | $ | 26,139 | $ | 42,107 | ||||||
Income taxes paid (refunds received) | 3,046 | 2,362 | (26,164 | ) | ||||||||
See accompanying notes to consolidated financial statements. |
63 |
64 |
65 |
66 |
67 |
68 |
69 |
70 |
71 |
Gross | ||||||||||||||||||||||||
Gross | Amounts | Gross Amounts not Offset | ||||||||||||||||||||||
Amounts of | Offset on the | in the Balance Sheet | ||||||||||||||||||||||
Recognized | Balance | Net Asset | Financial | Collateral | ||||||||||||||||||||
December 31, 2014 | Assets | Sheet | Balance | Instruments | Received | Net Amount | ||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 395,000 | $ | (375,000 | ) | $ | 20,000 | $ | — | $ | (20,302 | ) | $ | — | ||||||||||
Derivatives | 20,599 | — | 20,599 | (869 | ) | (3,716 | ) | 16,014 | ||||||||||||||||
Total | $ | 415,599 | $ | (375,000 | ) | $ | 40,599 | $ | (869 | ) | $ | (24,018 | ) | $ | 16,014 | |||||||||
Weighted average interest rate of reverse repurchase agreements | 1.16 | % |
Gross | ||||||||||||||||||||||||
Gross | Amounts | Gross Amounts not Offset | ||||||||||||||||||||||
Amounts of | Offset on the | Net | in the Balance Sheet | |||||||||||||||||||||
Recognized | Balance | Liability | Financial | Collateral | ||||||||||||||||||||
Liabilities | Sheet | Balance | Instruments | Pledged | Net Amount | |||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 375,000 | $ | (375,000 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivatives | 31,997 | 31,997 | (869 | ) | (32,792 | ) | — | |||||||||||||||||
Total | $ | 406,997 | $ | (375,000 | ) | $ | 31,997 | $ | (869 | ) | $ | (32,792 | ) | $ | — | |||||||||
Weighted average interest rate of repurchase agreements | .29 | % |
Gross | ||||||||||||||||||||||||
Gross | Amounts | Gross Amounts not Offset | ||||||||||||||||||||||
Amounts of | Offset on the | in the Balance Sheet | ||||||||||||||||||||||
Recognized | Balance | Net Asset | Financial | Collateral | ||||||||||||||||||||
December 31, 2013 | Assets | Sheet | Balance | Instruments | Received | Net Amount | ||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 385,000 | $ | (350,000 | ) | $ | 35,000 | $ | — | $ | (38,982 | ) | $ | — | ||||||||||
Derivatives | 23,833 | — | 23,833 | (4,378 | ) | (2,912 | ) | 16,543 | ||||||||||||||||
Total | $ | 408,833 | $ | (350,000 | ) | $ | 58,833 | $ | (4,378 | ) | $ | (41,894 | ) | $ | 16,543 | |||||||||
Weighted average interest rate of reverse repurchase agreements | 1.09 | % |
Gross | ||||||||||||||||||||||||
Gross | Amounts | Gross Amounts not Offset | ||||||||||||||||||||||
Amounts of | Offset on the | Net | in the Balance Sheet | |||||||||||||||||||||
Recognized | Balance | Liability | Financial | Collateral | ||||||||||||||||||||
Liabilities | Sheet | Balance | Instruments | Pledged | Net Amount | |||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 350,000 | $ | (350,000 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivatives | 46,232 | 46,232 | (4,378 | ) | (38,145 | ) | 3,709 | |||||||||||||||||
Total | $ | 396,232 | $ | (350,000 | ) | $ | 46,232 | $ | (4,378 | ) | $ | (38,145 | ) | $ | 3,709 | |||||||||
Weighted average interest rate of repurchase agreements | .27 | % |
72 |
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
As of December 31, 2014 | Cost | Gains | Losses | Value | ||||||||||||
State and political subdivisions | $ | 48,157 | $ | 3,504 | $ | — | $ | 51,661 | ||||||||
Mortgage-backed securities (1) | 367,110 | 7,716 | 1,254 | 373,572 | ||||||||||||
Total | $ | 415,267 | $ | 11,220 | $ | 1,254 | $ | 425,233 | ||||||||
As of December 31, 2013 | ||||||||||||||||
State and political subdivisions | $ | 51,733 | $ | 2,718 | $ | 42 | $ | 54,409 | ||||||||
Mortgage-backed securities (1) | 428,009 | 6,690 | 3,523 | 431,176 | ||||||||||||
Total | $ | 479,742 | $ | 9,408 | $ | 3,565 | $ | 485,585 |
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
As of December 31, 2014 | Cost | Gains | Losses | Value | ||||||||||||
U.S. Treasuries | $ | 105,540 | $ | 235 | $ | 66 | $ | 105,709 | ||||||||
U.S. Government agencies | 36,474 | — | 175 | 36,299 | ||||||||||||
State and political subdivisions | 19,748 | 504 | 19 | 20,233 | ||||||||||||
Mortgage-backed securities (1) | 988,012 | 16,273 | 7,465 | 996,820 | ||||||||||||
Corporate bonds | 165,018 | 1,686 | 1,076 | 165,628 | ||||||||||||
Asset-backed securities | 455,626 | 2,257 | 1,955 | 455,928 | ||||||||||||
Other | 2,117 | — | — | 2,117 | ||||||||||||
Total | $ | 1,772,535 | $ | 20,955 | $ | 10,756 | $ | 1,782,734 | ||||||||
As of December 31, 2013 | ||||||||||||||||
State and political subdivisions | $ | 22,558 | $ | 823 | $ | 139 | $ | 23,242 | ||||||||
Mortgage-backed securities (1) | 1,145,800 | 13,296 | 13,749 | 1,145,347 | ||||||||||||
Corporate bonds | 255,316 | 1,304 | 6,324 | 250,296 | ||||||||||||
Asset-backed securities | 409,086 | 2,535 | 988 | 410,633 | ||||||||||||
Other | 2,699 | — | — | 2,699 | ||||||||||||
Total | $ | 1,835,459 | $ | 17,958 | $ | 21,200 | $ | 1,832,217 |
73 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
As of December 31, 2014 | Fair Value | Loss | Fair Value | Loss | Fair Value | Loss | ||||||||||||||||||
Mortgage-backed securities | 126,514 | 917 | 17,053 | 337 | 143,567 | 1,254 | ||||||||||||||||||
Total unrealized loss position | $ | 126,514 | $ | 917 | $ | 17,053 | $ | 337 | $ | 143,567 | $ | 1,254 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
State and political subdivisions | $ | 1,595 | $ | 42 | $ | — | $ | — | $ | 1,595 | $ | 42 | ||||||||||||
Mortgage-backed securities | 259,870 | 3,523 | — | — | 259,870 | 3,523 | ||||||||||||||||||
Total unrealized loss position | $ | 261,465 | $ | 3,565 | $ | — | $ | — | $ | 261,465 | $ | 3,565 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
As of December 31, 2014 | Fair Value | Loss | Fair Value | Loss | Fair Value | Loss | ||||||||||||||||||
U.S. Treasuries | $ | 34,180 | $ | 66 | $ | — | $ | — | $ | 34,180 | $ | 66 | ||||||||||||
U.S. Government agencies | 36,299 | 175 | — | — | 36,299 | 175 | ||||||||||||||||||
State and political subdivisions | 2,481 | 19 | — | — | 2,481 | 19 | ||||||||||||||||||
Mortgage-backed securities | 88,741 | 446 | 251,977 | 7,019 | 340,718 | 7,465 | ||||||||||||||||||
Corporate bonds | 37,891 | 371 | 20,275 | 705 | 58,166 | 1,076 | ||||||||||||||||||
Asset-backed securities | 221,359 | 1,592 | 40,952 | 363 | 262,311 | 1,955 | ||||||||||||||||||
Total unrealized loss position | $ | 420,951 | $ | 2,669 | $ | 313,204 | $ | 8,087 | $ | 734,155 | $ | 10,756 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
State and political subdivisions | $ | 4,539 | $ | 139 | $ | — | $ | — | $ | 4,539 | $ | 139 | ||||||||||||
Mortgage-backed securities | 334,996 | 6,480 | 175,865 | 7,269 | 510,861 | 13,749 | ||||||||||||||||||
Corporate bonds | 137,318 | 4,494 | 54,130 | 1,830 | 191,448 | 6,324 | ||||||||||||||||||
Asset-backed securities | 164,933 | 722 | 22,370 | 266 | 187,303 | 988 | ||||||||||||||||||
Total unrealized loss position | $ | 641,786 | $ | 11,835 | $ | 252,365 | $ | 9,365 | $ | 894,151 | $ | 21,200 |
74 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
US Treasuries: | ||||||||||||||||
1 to 5 years | $ | 105,540 | $ | 105,709 | $ | — | $ | — | ||||||||
105,540 | 105,709 | — | — | |||||||||||||
US Government agencies: | ||||||||||||||||
5 to 10 years | 36,474 | 36,299 | — | — | ||||||||||||
36,474 | 36,299 | — | — | |||||||||||||
State and political subdivisions: | ||||||||||||||||
Within 1 year | 6,369 | 6,405 | 1,000 | 1,013 | ||||||||||||
1 to 5 years | 10,430 | 10,771 | 18,582 | 19,812 | ||||||||||||
5 to 10 years | 2,101 | 2,165 | 19,573 | 21,033 | ||||||||||||
More than 10 years | 848 | 892 | 9,002 | 9,803 | ||||||||||||
19,748 | 20,233 | 48,157 | 51,661 | |||||||||||||
Corporate bonds: | ||||||||||||||||
Within 1 year | 9,980 | 9,815 | — | — | ||||||||||||
1 to 5 years | 38,262 | 37,891 | — | — | ||||||||||||
5 to 10 years | 115,776 | 117,172 | — | — | ||||||||||||
More than 10 years | 1,000 | 750 | — | — | ||||||||||||
165,018 | 165,628 | — | — | |||||||||||||
Asset-backed securities: | ||||||||||||||||
Within 1 year | 9,590 | 9,505 | — | — | ||||||||||||
1 to 5 years | 256,986 | 257,886 | — | — | ||||||||||||
5 to 10 years | 58,581 | 58,966 | — | — | ||||||||||||
More than 10 years | 130,469 | 129,571 | — | — | ||||||||||||
455,626 | 455,928 | — | — | |||||||||||||
Other: | ||||||||||||||||
Within 1 year | 62 | 62 | — | — | ||||||||||||
More than 10 years | 2,055 | 2,055 | — | — | ||||||||||||
2,117 | 2,117 | — | — | |||||||||||||
Total securities other than mortgage-backed securities: | ||||||||||||||||
Within 1 year | 26,001 | 25,787 | 1,000 | 1,013 | ||||||||||||
1 to 5 years | 411,218 | 412,257 | 18,582 | 19,812 | ||||||||||||
5 to 10 years | 212,932 | 214,602 | 19,573 | 21,033 | ||||||||||||
More than 10 years | 134,372 | 133,268 | 9,002 | 9,803 | ||||||||||||
Mortgage-backed securities | 988,012 | 996,820 | 367,110 | 373,572 | ||||||||||||
$ | 1,772,535 | $ | 1,782,734 | $ | 415,267 | $ | 425,233 |
75 |
2014 | 2013 | 2012 | ||||||||||
Proceeds from sales | $ | 419,201 | $ | 39,731 | $ | 469,167 | ||||||
Gross gains on sales | $ | 6,003 | $ | 264 | $ | 7,364 | ||||||
Gross losses on sales | (1,132 | ) | (78 | ) | (286 | ) | ||||||
Net gains on sales of securities | $ | 4,871 | $ | 186 | $ | 7,078 | ||||||
Income tax expense attributable to sales | $ | 1,902 | $ | 72 | $ | 2,753 |
2014 | 2013 | |||||||
Owner occupied commercial real estate | $ | 1,163,480 | $ | 1,133,543 | ||||
Income producing commercial real estate | 598,537 | 623,167 | ||||||
Commercial & industrial | 710,256 | 471,961 | ||||||
Commercial construction | 196,030 | 148,903 | ||||||
Total commercial | 2,668,303 | 2,377,574 | ||||||
Residential mortgage | 865,789 | 875,077 | ||||||
Home equity lines of credit | 465,872 | 440,887 | ||||||
Residential construction | 298,627 | 328,579 | ||||||
Consumer installment | 104,899 | 111,045 | ||||||
Indirect auto | 268,629 | 196,104 | ||||||
Total loans | 4,672,119 | 4,329,266 | ||||||
Less allowance for loan losses | (71,619 | ) | (76,762 | ) | ||||
Loans, net | $ | 4,600,500 | $ | 4,252,504 |
76 |
Allocation | ||||||||||||||||||||||||
Beginning | Charge- | of | Ending | |||||||||||||||||||||
Year Ended December 31, 2014 | Balance | Offs | Recoveries | Unallocated | Provision | Balance | ||||||||||||||||||
Owner occupied commercial real estate | $ | 17,164 | $ | (3,136 | ) | $ | 3,056 | $ | 1,278 | $ | (2,321 | ) | $ | 16,041 | ||||||||||
Income producing commercial real estate | 7,174 | (1,611 | ) | 725 | 688 | 3,320 | 10,296 | |||||||||||||||||
Commercial & industrial | 6,527 | (2,145 | ) | 1,698 | 318 | (3,143 | ) | 3,255 | ||||||||||||||||
Commercial construction | 3,669 | (235 | ) | 6 | 388 | 919 | 4,747 | |||||||||||||||||
Residential mortgage | 15,446 | (7,502 | ) | 1,110 | 1,452 | 9,805 | 20,311 | |||||||||||||||||
Home equity lines of credit | 5,528 | (2,314 | ) | 287 | 391 | 682 | 4,574 | |||||||||||||||||
Residential construction | 12,532 | (3,176 | ) | 627 | 1,728 | (1,108 | ) | 10,603 | ||||||||||||||||
Consumer installment | 1,353 | (2,008 | ) | 1,226 | — | 160 | 731 | |||||||||||||||||
Indirect auto | 1,126 | (540 | ) | 54 | — | 421 | 1,061 | |||||||||||||||||
Unallocated | 6,243 | — | — | (6,243 | ) | — | — | |||||||||||||||||
Total allowance for loan losses | 76,762 | (22,667 | ) | 8,789 | — | 8,735 | 71,619 | |||||||||||||||||
Allowance for unfunded commitments | 2,165 | — | — | — | (235 | ) | 1,930 | |||||||||||||||||
Total allowance for credit losses | $ | 78,927 | $ | (22,667 | ) | $ | 8,789 | $ | — | $ | 8,500 | $ | 73,549 | |||||||||||
Allocation | ||||||||||||||||||||||||
Beginning | Charge- | of | Ending | |||||||||||||||||||||
Year Ended December 31, 2013 | Balance | Offs | Recoveries | Unallocated | Provision | Balance | ||||||||||||||||||
Owner occupied commercial real estate | $ | 17,265 | $ | (24,965 | ) | $ | 1,305 | $ | — | $ | 23,559 | $ | 17,164 | |||||||||||
Income producing commercial real estate | 10,582 | (11,505 | ) | 640 | — | 7,457 | 7,174 | |||||||||||||||||
Commercial & industrial | 5,537 | (18,914 | ) | 1,888 | — | 18,016 | 6,527 | |||||||||||||||||
Commercial construction | 8,389 | (6,483 | ) | 69 | — | 1,694 | 3,669 | |||||||||||||||||
Residential mortgage | 19,117 | (8,840 | ) | 611 | — | 4,558 | 15,446 | |||||||||||||||||
Home equity lines of credit | 7,525 | (3,437 | ) | 104 | — | 1,336 | 5,528 | |||||||||||||||||
Residential construction | 26,662 | (23,049 | ) | 173 | — | 8,746 | 12,532 | |||||||||||||||||
Consumer installment | 2,527 | (2,184 | ) | 1,114 | — | (104 | ) | 1,353 | ||||||||||||||||
Indirect auto | 220 | (277 | ) | 40 | — | 1,143 | 1,126 | |||||||||||||||||
Unallocated | 9,313 | — | — | — | (3,070 | ) | 6,243 | |||||||||||||||||
Total allowance for loan losses | 107,137 | (99,654 | ) | 5,944 | — | 63,335 | 76,762 | |||||||||||||||||
Allowance for unfunded commitments | — | — | — | — | 2,165 | 2,165 | ||||||||||||||||||
Total allowance for credit losses | $ | 107,137 | $ | (99,654 | ) | $ | 5,944 | $ | — | $ | 65,500 | $ | 78,927 | |||||||||||
Allocation | ||||||||||||||||||||||||
Beginning | Charge- | of | Ending | |||||||||||||||||||||
Year Ended December 31, 2012 | Balance | Offs | Recoveries | Unallocated | Provision | Balance | ||||||||||||||||||
Owner occupied commercial real estate | $ | 19,310 | $ | (10,280 | ) | $ | 557 | $ | — | $ | 7,678 | $ | 17,265 | |||||||||||
Income producing commercial real estate | 12,334 | (12,782 | ) | 135 | — | 10,895 | 10,582 | |||||||||||||||||
Commercial & industrial | 5,681 | (2,424 | ) | 1,104 | — | 1,176 | 5,537 | |||||||||||||||||
Commercial construction | 6,097 | (5,411 | ) | 111 | — | 7,592 | 8,389 | |||||||||||||||||
Residential mortgage | 21,386 | (12,885 | ) | 675 | — | 9,941 | 19,117 | |||||||||||||||||
Home equity lines of credit | 7,690 | (4,377 | ) | 124 | — | 4,088 | 7,525 | |||||||||||||||||
Residential construction | 30,379 | (24,260 | ) | 1,272 | — | 19,271 | 26,662 | |||||||||||||||||
Consumer installment | 2,124 | (2,198 | ) | 824 | — | 1,777 | 2,527 | |||||||||||||||||
Indirect auto | — | (16 | ) | — | — | 236 | 220 | |||||||||||||||||
Unallocated | 9,467 | — | — | — | (154 | ) | 9,313 | |||||||||||||||||
Total allowance for loan losses | 114,468 | (74,633 | ) | 4,802 | — | 62,500 | 107,137 | |||||||||||||||||
Allowance for unfunded commitments | — | — | — | — | — | — | ||||||||||||||||||
Total allowance for credit losses | $ | 114,468 | $ | (74,633 | ) | $ | 4,802 | $ | — | $ | 62,500 | $ | 107,137 |
77 |
Allowance for Loan Losses | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | |||||||||||||||||||||
evaluated for | evaluated for | Ending | evaluated for | evaluated for | Ending | |||||||||||||||||||
impairment | impairment | Balance | impairment | impairment | Balance | |||||||||||||||||||
Owner occupied commercial real estate | $ | 2,737 | $ | 13,304 | $ | 16,041 | $ | 1,023 | $ | 16,141 | $ | 17,164 | ||||||||||||
Income producing commercial real estate | 1,917 | 8,379 | 10,296 | 990 | 6,184 | 7,174 | ||||||||||||||||||
Commercial & industrial | 15 | 3,240 | 3,255 | 66 | 6,461 | 6,527 | ||||||||||||||||||
Commercial construction | 729 | 4,018 | 4,747 | 112 | 3,557 | 3,669 | ||||||||||||||||||
Residential mortgage | 3,227 | 17,084 | 20,311 | 2,914 | 12,532 | 15,446 | ||||||||||||||||||
Home equity lines of credit | 47 | 4,527 | 4,574 | 5 | 5,523 | 5,528 | ||||||||||||||||||
Residential construction | 1,192 | 9,411 | 10,603 | 688 | 11,844 | 12,532 | ||||||||||||||||||
Consumer installment | 18 | 713 | 731 | 224 | 1,129 | 1,353 | ||||||||||||||||||
Indirect auto | — | 1,061 | 1,061 | — | 1,126 | 1,126 | ||||||||||||||||||
Unallocated | — | — | — | — | 6,243 | 6,243 | ||||||||||||||||||
Total allowance for loan losses | 9,882 | 61,737 | 71,619 | 6,022 | 70,740 | 76,762 | ||||||||||||||||||
Allowance for unfunded commitments | — | 1,930 | 1,930 | — | 2,165 | 2,165 | ||||||||||||||||||
Total allowance for credit losses | $ | 9,882 | $ | 63,667 | $ | 73,549 | $ | 6,022 | $ | 72,905 | $ | 78,927 | ||||||||||||
Loans Outstanding | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | |||||||||||||||||||||
evaluated for | evaluated for | Ending | evaluated for | evaluated for | Ending | |||||||||||||||||||
impairment | impairment | Balance | impairment | impairment | Balance | |||||||||||||||||||
Owner occupied commercial real estate | $ | 34,654 | $ | 1,128,826 | $ | 1,163,480 | $ | 32,969 | $ | 1,100,574 | $ | 1,133,543 | ||||||||||||
Income producing commercial real estate | 24,484 | 574,053 | 598,537 | 27,239 | 595,928 | 623,167 | ||||||||||||||||||
Commercial & industrial | 3,977 | 706,279 | 710,256 | 4,217 | 467,744 | 471,961 | ||||||||||||||||||
Commercial construction | 12,321 | 183,709 | 196,030 | 13,715 | 135,188 | 148,903 | ||||||||||||||||||
Residential mortgage | 18,775 | 847,014 | 865,789 | 20,167 | 854,910 | 875,077 | ||||||||||||||||||
Home equity lines of credit | 478 | 465,394 | 465,872 | 505 | 440,382 | 440,887 | ||||||||||||||||||
Residential construction | 11,604 | 287,023 | 298,627 | 14,808 | 313,771 | 328,579 | ||||||||||||||||||
Consumer installment | 179 | 104,720 | 104,899 | 999 | 110,046 | 111,045 | ||||||||||||||||||
Indirect auto | — | 268,629 | 268,629 | — | 196,104 | 196,104 | ||||||||||||||||||
Total loans | $ | 106,472 | $ | 4,565,647 | $ | 4,672,119 | $ | 114,619 | $ | 4,214,647 | $ | 4,329,266 |
78 |
79 |
Recorded | Net Sales | Net | ||||||||||
Investment | Proceeds | Charge-Off | ||||||||||
Loans considered impaired | $ | 96,829 | $ | 56,298 | $ | (40,531 | ) | |||||
Loans not considered impaired | 25,687 | 15,227 | (10,460 | ) | ||||||||
Foreclosed properties | 8,398 | 5,933 | (2,465 | ) | ||||||||
Total assets sold | $ | 130,914 | $ | 77,458 | $ | (53,456 | ) |
Balances at December 31, 2013 | $ | 2,898 | ||
New loans and advances | 400 | |||
Repayments | (94 | ) | ||
Balances at December 31, 2014 | $ | 3,204 |
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||||||||||||||
Revenue | Cash Basis | Revenue | Cash Basis | Revenue | Cash Basis | |||||||||||||||||||||||||||||||
Recognized | Interest | Recognized | Interest | Recognized | Interest | |||||||||||||||||||||||||||||||
Average | During | Revenue | Average | During | Revenue | Average | During | Revenue | ||||||||||||||||||||||||||||
Balance | Impairment | Received | Balance | Impairment | Received | Balance | Impairment | Received | ||||||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 32,748 | $ | 1,647 | $ | 1,712 | $ | 31,935 | $ | 1,923 | $ | 2,044 | $ | 56,374 | $ | 2,602 | $ | 2,773 | ||||||||||||||||||
Income producing commercial real estate | 25,920 | 1,270 | 1,311 | 27,789 | 1,630 | 1,763 | 58,182 | 2,392 | 2,497 | |||||||||||||||||||||||||||
Commercial & industrial | 4,290 | 175 | 231 | 4,609 | 401 | 865 | 45,233 | 1,051 | 2,523 | |||||||||||||||||||||||||||
Commercial construction | 12,156 | 455 | 458 | 13,946 | 633 | 720 | 45,489 | 875 | 1,268 | |||||||||||||||||||||||||||
Total commercial | 75,114 | 3,547 | 3,712 | 78,279 | 4,587 | 5,392 | 205,278 | 6,920 | 9,061 | |||||||||||||||||||||||||||
Residential mortgage | 20,132 | 873 | 869 | 20,906 | 1,091 | 1,066 | 22,923 | 1,032 | 1,158 | |||||||||||||||||||||||||||
Home equity lines of credit | 518 | 21 | 22 | 507 | 23 | 22 | 1,003 | 26 | 32 | |||||||||||||||||||||||||||
Residential construction | 13,058 | 576 | 575 | 14,558 | 993 | 1,023 | 46,410 | 1,527 | 2,054 | |||||||||||||||||||||||||||
Consumer installment | 305 | 19 | 22 | 383 | 21 | 21 | 564 | 26 | 27 | |||||||||||||||||||||||||||
Indirect auto | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 109,127 | $ | 5,036 | $ | 5,200 | $ | 114,633 | $ | 6,715 | $ | 7,524 | $ | 276,178 | $ | 9,531 | $ | 12,332 |
80 |
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Allowance | Allowance | |||||||||||||||||||||||
Unpaid | for Loan | Unpaid | for Loan | |||||||||||||||||||||
Principal | Recorded | Losses | Principal | Recorded | Losses | |||||||||||||||||||
Balance | Investment | Allocated | Balance | Investment | Allocated | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 12,025 | $ | 11,325 | $ | — | $ | 17,717 | $ | 14,458 | $ | — | ||||||||||||
Income producing commercial real estate | 8,311 | 8,311 | — | 12,644 | 9,747 | — | ||||||||||||||||||
Commercial & industrial | 1,679 | 1,042 | — | 2,252 | 2,252 | — | ||||||||||||||||||
Commercial construction | — | — | — | 974 | 974 | — | ||||||||||||||||||
Total commercial | 22,015 | 20,678 | — | 33,587 | 27,431 | — | ||||||||||||||||||
Residential mortgage | 2,569 | 1,472 | — | 4,496 | 3,634 | — | ||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | ||||||||||||||||||
Residential construction | 4,338 | 3,338 | — | 9,462 | 7,807 | — | ||||||||||||||||||
Consumer installment | — | — | — | — | — | — | ||||||||||||||||||
Indirect auto | — | — | — | — | — | — | ||||||||||||||||||
Total with no related allowance recorded | 28,922 | 25,488 | — | 47,545 | 38,872 | — | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Owner occupied commercial real estate | 24,728 | 23,329 | 2,737 | 18,595 | 18,513 | 1,023 | ||||||||||||||||||
Income producing commercial real estate | 16,352 | 16,173 | 1,917 | 17,490 | 17,490 | 990 | ||||||||||||||||||
Commercial & industrial | 2,936 | 2,935 | 15 | 2,248 | 1,965 | 66 | ||||||||||||||||||
Commercial construction | 12,401 | 12,321 | 729 | 12,821 | 12,741 | 112 | ||||||||||||||||||
Total commercial | 56,417 | 54,758 | 5,398 | 51,154 | 50,709 | 2,191 | ||||||||||||||||||
Residential mortgage | 17,732 | 17,303 | 3,227 | 17,119 | 16,533 | 2,914 | ||||||||||||||||||
Home equity lines of credit | 478 | 478 | 47 | 505 | 505 | 5 | ||||||||||||||||||
Residential construction | 8,962 | 8,266 | 1,192 | 8,469 | 7,001 | 688 | ||||||||||||||||||
Consumer installment | 179 | 179 | 18 | 999 | 999 | 224 | ||||||||||||||||||
Indirect auto | — | — | — | — | — | — | ||||||||||||||||||
Total with an allowance recorded | 83,768 | 80,984 | 9,882 | 78,246 | 75,747 | 6,022 | ||||||||||||||||||
Total | $ | 112,690 | $ | 106,472 | $ | 9,882 | $ | 125,791 | $ | 114,619 | $ | 6,022 |
81 |
2014 | 2013 | |||||||
Owner occupied commercial real estate | $ | 4,133 | $ | 5,822 | ||||
Income producing commercial real estate | 717 | 2,518 | ||||||
Commercial & industrial | 1,571 | 427 | ||||||
Commercial construction | 83 | 361 | ||||||
Total commercial | 6,504 | 9,128 | ||||||
Residential mortgage | 8,196 | 11,730 | ||||||
Home equity lines of credit | 695 | 1,448 | ||||||
Residential construction | 2,006 | 4,264 | ||||||
Consumer installment | 134 | 249 | ||||||
Indirect auto | 346 | — | ||||||
Total | $ | 17,881 | $ | 26,819 |
Loans Past Due | Loans Not | |||||||||||||||||||||||
As of December 31, 2014 | 30 - 59 Days | 60 - 89 Days | > 90 Days | Total | Past Due | Total | ||||||||||||||||||
Owner occupied commercial real estate | $ | 1,444 | $ | 1,929 | $ | 1,141 | $ | 4,514 | $ | 1,158,966 | $ | 1,163,480 | ||||||||||||
Income producing commercial real estate | 2,322 | 1,172 | — | 3,494 | 595,043 | 598,537 | ||||||||||||||||||
Commercial & industrial | 302 | 40 | 1,425 | 1,767 | 708,489 | 710,256 | ||||||||||||||||||
Commercial construction | — | — | 66 | 66 | 195,964 | 196,030 | ||||||||||||||||||
Total commercial | 4,068 | 3,141 | 2,632 | 9,841 | 2,658,462 | 2,668,303 | ||||||||||||||||||
Residential mortgage | 5,234 | 2,931 | 3,278 | 11,443 | 854,346 | 865,789 | ||||||||||||||||||
Home equity lines of credit | 961 | 303 | 167 | 1,431 | 464,441 | 465,872 | ||||||||||||||||||
Residential construction | 1,172 | 268 | 1,395 | 2,835 | 295,792 | 298,627 | ||||||||||||||||||
Consumer installment | 607 | 136 | 33 | 776 | 104,123 | 104,899 | ||||||||||||||||||
Indirect auto | 200 | 146 | 141 | 487 | 268,142 | 268,629 | ||||||||||||||||||
Total loans | $ | 12,242 | $ | 6,925 | $ | 7,646 | $ | 26,813 | $ | 4,645,306 | $ | 4,672,119 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 1,845 | $ | 705 | $ | 2,017 | $ | 4,567 | $ | 1,128,976 | $ | 1,133,543 | ||||||||||||
Income producing commercial real estate | 3,879 | 2,092 | 530 | 6,501 | 616,666 | 623,167 | ||||||||||||||||||
Commercial & industrial | 2,349 | 223 | 88 | 2,660 | 469,301 | 471,961 | ||||||||||||||||||
Commercial construction | 94 | 190 | 235 | 519 | 148,384 | 148,903 | ||||||||||||||||||
Total commercial | 8,167 | 3,210 | 2,870 | 14,247 | 2,363,327 | 2,377,574 | ||||||||||||||||||
Residential mortgage | 9,011 | 2,832 | 4,140 | 15,983 | 859,094 | 875,077 | ||||||||||||||||||
Home equity lines of credit | 2,056 | 430 | 941 | 3,427 | 437,460 | 440,887 | ||||||||||||||||||
Residential construction | 1,335 | 588 | 1,375 | 3,298 | 325,281 | 328,579 | ||||||||||||||||||
Consumer installment | 1,058 | 358 | 24 | 1,440 | 109,605 | 111,045 | ||||||||||||||||||
Indirect auto | 185 | 65 | 42 | 292 | 195,812 | 196,104 | ||||||||||||||||||
Total loans | $ | 21,812 | $ | 7,483 | $ | 9,392 | $ | 38,687 | $ | 4,290,579 | $ | 4,329,266 |
82 |
Troubled Debt | ||||||||||||||||||||
Restructurings That Have | ||||||||||||||||||||
Pre- | Post- | Subsequently Defaulted | ||||||||||||||||||
Modification | Modification | Within the Previous Twelve | ||||||||||||||||||
Outstanding | Outstanding | Months | ||||||||||||||||||
Troubled Debt Restructurings for the Year | Number of | Recorded | Recorded | Number of | Recorded | |||||||||||||||
ended December 31, 2014 | Contracts | Investment | Investment | Contracts | Investment | |||||||||||||||
Owner occupied commercial real estate | 12 | $ | 4,793 | $ | 4,793 | 1 | $ | 104 | ||||||||||||
Income producing commercial real estate | 3 | 1,459 | 1,459 | — | — | |||||||||||||||
Commercial & industrial | 9 | 1,185 | 1,185 | 2 | 54 | |||||||||||||||
Commercial construction | 6 | 829 | 829 | — | — | |||||||||||||||
Total commercial | 30 | 8,266 | 8,266 | 3 | 158 | |||||||||||||||
Residential mortgage | 39 | 3,622 | 3,445 | 9 | 892 | |||||||||||||||
Home equity lines of credit | 1 | 36 | 36 | — | — | |||||||||||||||
Residential construction | 4 | 1,262 | 1,262 | — | — | |||||||||||||||
Consumer installment | 5 | 226 | 226 | — | — | |||||||||||||||
Indirect auto | — | — | — | — | — | |||||||||||||||
Total loans | 79 | $ | 13,412 | $ | 13,235 | 12 | $ | 1,050 | ||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Owner occupied commercial real estate | 12 | $ | 6,326 | $ | 5,227 | 3 | $ | 670 | ||||||||||||
Income producing commercial real estate | 8 | 6,157 | 6,157 | — | — | |||||||||||||||
Commercial & industrial | 14 | 1,464 | 1,208 | 1 | 35 | |||||||||||||||
Commercial construction | 1 | 416 | 416 | 2 | 1,454 | |||||||||||||||
Total commercial | 35 | 14,363 | 13,008 | 6 | 2,159 | |||||||||||||||
Residential mortgage | 49 | 7,098 | 6,573 | 3 | 641 | |||||||||||||||
Home equity lines of credit | — | — | — | — | — | |||||||||||||||
Residential construction | 15 | 2,160 | 2,015 | 3 | 531 | |||||||||||||||
Consumer installment | 11 | 80 | 80 | 5 | 29 | |||||||||||||||
Indirect auto | — | — | — | — | — | |||||||||||||||
Total loans | 110 | $ | 23,701 | $ | 21,676 | 17 | $ | 3,360 | ||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Owner occupied commercial real estate | 31 | $ | 17,387 | $ | 15,865 | 6 | $ | 2,341 | ||||||||||||
Income producing commercial real estate | 23 | 17,063 | 17,063 | 1 | 946 | |||||||||||||||
Commercial & industrial | 22 | 3,619 | 3,616 | 3 | 71 | |||||||||||||||
Commercial construction | 20 | 34,014 | 33,934 | 3 | 4,224 | |||||||||||||||
Total commercial | 96 | 72,083 | 70,478 | 13 | 7,582 | |||||||||||||||
Residential mortgage | 64 | 14,404 | 13,575 | 10 | 650 | |||||||||||||||
Home equity lines of credit | 3 | 728 | 728 | — | — | |||||||||||||||
Residential construction | 49 | 19,909 | 17,400 | 16 | 5,728 | |||||||||||||||
Consumer installment | 25 | 334 | 328 | 4 | 39 | |||||||||||||||
Indirect auto | — | — | — | — | — | |||||||||||||||
Total loans | 237 | $ | 107,458 | $ | 102,509 | 43 | $ | 13,999 |
83 |
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | |||||||||||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||||||||||
Owner occupied commercial real estate | 54 | $ | 27,695 | $ | 26,296 | 45 | $ | 24,064 | $ | 22,399 | ||||||||||||||
Income producing commercial real estate | 31 | 18,094 | 17,915 | 32 | 20,900 | 18,268 | ||||||||||||||||||
Commercial & industrial | 32 | 2,848 | 2,847 | 36 | 3,527 | 3,245 | ||||||||||||||||||
Commercial construction | 14 | 11,360 | 11,280 | 13 | 13,122 | 13,042 | ||||||||||||||||||
Total commercial | 131 | 59,997 | 58,338 | 126 | 61,613 | 56,954 | ||||||||||||||||||
Residential mortgage | 154 | 18,630 | 17,836 | 133 | 20,117 | 18,852 | ||||||||||||||||||
Home equity lines of credit | 2 | 478 | 478 | 3 | 505 | 505 | ||||||||||||||||||
Residential construction | 48 | 8,962 | 8,265 | 57 | 12,459 | 10,452 | ||||||||||||||||||
Consumer installment | 17 | 179 | 179 | 26 | 203 | 203 | ||||||||||||||||||
Indirect auto | — | — | — | — | — | — | ||||||||||||||||||
Total loans | 352 | $ | 88,246 | $ | 85,096 | 345 | $ | 94,897 | $ | 86,966 |
84 |
Substandard | Doubtful / | |||||||||||||||||||||||
As of December 31, 2014 | Pass | Watch | Performing | Nonaccrual | Loss | Total | ||||||||||||||||||
Owner occupied commercial real estate | $ | 1,094,057 | $ | 18,889 | $ | 46,401 | $ | 4,133 | $ | — | $ | 1,163,480 | ||||||||||||
Income producing commercial real estate | 560,559 | 16,701 | 20,560 | 717 | — | 598,537 | ||||||||||||||||||
Commercial & industrial | 696,805 | 4,017 | 7,863 | 1,571 | — | 710,256 | ||||||||||||||||||
Commercial construction | 190,070 | 2,311 | 3,566 | 83 | — | 196,030 | ||||||||||||||||||
Total commercial | 2,541,491 | 41,918 | 78,390 | 6,504 | — | 2,668,303 | ||||||||||||||||||
Residential mortgage | 814,168 | 11,594 | 31,831 | 8,196 | — | 865,789 | ||||||||||||||||||
Home equity lines of credit | 459,881 | — | 5,296 | 695 | — | 465,872 | ||||||||||||||||||
Residential construction | 280,166 | 5,535 | 10,920 | 2,006 | — | 298,627 | ||||||||||||||||||
Consumer installment | 103,383 | — | 1,382 | 134 | — | 104,899 | ||||||||||||||||||
Indirect auto | 267,709 | — | 574 | 346 | — | 268,629 | ||||||||||||||||||
Total loans | $ | 4,466,798 | $ | 59,047 | $ | 128,393 | $ | 17,881 | $ | — | $ | 4,672,119 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 1,054,924 | $ | 29,714 | $ | 43,083 | $ | 5,822 | $ | — | $ | 1,133,543 | ||||||||||||
Income producing commercial real estate | 575,597 | 10,410 | 34,642 | 2,518 | — | 623,167 | ||||||||||||||||||
Commercial & industrial | 456,563 | 5,382 | 9,589 | 427 | — | 471,961 | ||||||||||||||||||
Commercial construction | 120,852 | 10,932 | 16,758 | 361 | — | 148,903 | ||||||||||||||||||
Total commercial | 2,207,936 | 56,438 | 104,072 | 9,128 | — | 2,377,574 | ||||||||||||||||||
Residential mortgage | 793,381 | 25,944 | 44,022 | 11,730 | — | 875,077 | ||||||||||||||||||
Home equity lines of credit | 426,052 | 5,420 | 7,967 | 1,448 | — | 440,887 | ||||||||||||||||||
Residential construction | 298,685 | 11,526 | 14,104 | 4,264 | — | 328,579 | ||||||||||||||||||
Consumer installment | 107,029 | 1,229 | 2,538 | 249 | — | 111,045 | ||||||||||||||||||
Indirect auto | 196,104 | — | — | — | — | 196,104 | ||||||||||||||||||
Total loans | $ | 4,029,187 | $ | 100,557 | $ | 172,703 | $ | 26,819 | $ | — | $ | 4,329,266 |
2014 | 2013 | |||||||
Commercial real estate | $ | 639 | $ | 1,287 | ||||
Commercial construction | 15 | — | ||||||
Total commercial | 654 | 1,287 | ||||||
Residential mortgage | 1,259 | 3,380 | ||||||
Residential construction | 473 | 736 | ||||||
Total foreclosed property | 2,386 | 5,403 | ||||||
Less valuation allowance | (660 | ) | (1,182 | ) | ||||
Foreclosed property, net | $ | 1,726 | $ | 4,221 | ||||
Balance as a percentage of original loan unpaid principal | 54.1 | % | 44.5 | % |
85 |
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,182 | $ | 6,954 | $ | 18,982 | ||||||
Additions charged to expense | 691 | 3,065 | 6,951 | |||||||||
Charge-offs upon disposition | (1,213 | ) | (8,837 | ) | (18,979 | ) | ||||||
Balance at end of year | $ | 660 | $ | 1,182 | $ | 6,954 |
2014 | 2013 | 2012 | ||||||||||
Net (gain) loss on sales | $ | (1,395 | ) | $ | 1,641 | $ | 1,924 | |||||
Provision for unrealized losses | 691 | 3,065 | 6,951 | |||||||||
Operating expenses, net of rental income | 1,338 | 3,163 | 5,118 | |||||||||
Total foreclosed property expense | $ | 634 | $ | 7,869 | $ | 13,993 |
(9) Premises and Equipment
2014 | 2013 | |||||||
Land and land improvements | $ | 79,525 | $ | 80,845 | ||||
Buildings and improvements | 113,105 | 114,048 | ||||||
Furniture and equipment | 59,827 | 63,015 | ||||||
Construction in progress | 1,861 | 510 | ||||||
254,318 | 258,418 | |||||||
Less accumulated depreciation | (94,928 | ) | (94,829 | ) | ||||
Premises and equipment, net | $ | 159,390 | $ | 163,589 |
2015 | $ | 1,741 | ||
2016 | 1,376 | |||
2017 | 1,331 | |||
2018 | 1,009 | |||
2019 | 897 | |||
Thereafter | 4,523 | |||
Total | $ | 10,877 |
86 |
ASC 860 Servicing Asset Rollforward | ||||
Fair value as of January 1, 2014 | $ | — | ||
Additions: | ||||
Acquired servicing rights | 2,133 | |||
Originated servicing rights capitalized upon sale of loans | 832 | |||
Subtractions: | ||||
Disposals | (152 | ) | ||
Changes in fair value: | ||||
Due to change in valuation inputs or assumptions used in the valuation model | (262 | ) | ||
Fair value as of December 31, 2014 | $ | 2,551 |
Sensitivity of the SBA Servicing Asset As of December 31, 2014 | ||||
Fair value of retained Servicing Assets | $ | 2,551 | ||
Prepayment rate assumption | 6.70 | % | ||
10% adverse change | $ | (62 | ) | |
20% adverse change | $ | (122 | ) | |
Discount rate | 12.0 | % | ||
100 bps adverse change | $ | (85 | ) | |
200bps adverse change | $ | (164 | ) | |
Weighted-average life (months) | 6.5 | |||
Weighted-average gross margin | 2.00 | % |
87 |
Maturing In: | ||||
2015 | $ | 1,001,274 | ||
2016 | 179,246 | |||
2017 | 38,505 | |||
2018 | 25,331 | |||
2019 | 13,596 | |||
thereafter | 271,587 | |||
$ | 1,529,539 |
Amount | |||||||||
Maturing In: | Maturing | Current Rate Range | |||||||
2015 | $ | 270,000 | 0.18% - 0.24% | ||||||
2016 | 125 | ||||||||
$ | 270,125 |
88 |
Stated | Earliest | |||||||||||||||||||||||
Issue | Maturity | Call | ||||||||||||||||||||||
2014 | 2013 | Date | Date | Date | Interest Rate | |||||||||||||||||||
2013 senior debentures | $ | 40,000 | $ | 40,000 | 2013 | 2018 | 2015 | 6.000 | % | |||||||||||||||
2012 senior debentures | 35,000 | 35,000 | 2012 | 2017 | 2017 | 9.000 | ||||||||||||||||||
Total senior debentures | 75,000 | 75,000 | ||||||||||||||||||||||
United Community Capital Trust | 21,650 | 21,650 | 1998 | 2028 | 2008 | 8.125 | ||||||||||||||||||
United Community Statutory Trust I | 5,155 | 5,155 | 2000 | 2030 | 2010 | 10.600 | ||||||||||||||||||
United Community Capital Trust II | 10,309 | 10,309 | 2000 | 2030 | 2010 | 11.295 | ||||||||||||||||||
Southern Bancorp Capital Trust I | 4,382 | 4,382 | 2004 | 2034 | 2009 | Prime + 1.00 | ||||||||||||||||||
United Community Statutory Trust II | 12,131 | 12,131 | 2008 | 2038 | 2013 | 9.000 | ||||||||||||||||||
United Community Statutory Trust III | 1,238 | 1,238 | 2008 | 2038 | 2013 | Prime + 3.00 | ||||||||||||||||||
Total trust preferred securities | 54,865 | 54,865 | ||||||||||||||||||||||
Total long-term debt | $ | 129,865 | $ | 129,865 |
89 |
Amounts Reclassified from Accumulated | ||||||||||||||
Other Comprehensive Income | ||||||||||||||
Details about Accumulated Other | For the Years Ended December 31, | Affected Line Item in the Statement | ||||||||||||
Comprehensive Income Components | 2014 | 2013 | 2012 | Where Net Income is Presented | ||||||||||
Realized gains on available-for-sale securities: | ||||||||||||||
$ | 4,871 | $ | 186 | $ | 7,078 | Securities gains, net | ||||||||
(1,902 | ) | (72 | ) | (2,753 | ) | Tax expense | ||||||||
$ | 2,969 | $ | 114 | $ | 4,325 | Net of tax | ||||||||
Amortization of gains included in net income on available-for-sale securities transferred to held to maturity: | ||||||||||||||
$ | 1,656 | $ | 731 | $ | 1,988 | Investment securities interest revenue | ||||||||
(622 | ) | (282 | ) | (773 | ) | Tax expense | ||||||||
$ | 1,034 | $ | 449 | $ | 1,215 | Net of tax | ||||||||
Amounts included in net income on derivative financial instruments accounted for as cash flow hedges: | ||||||||||||||
Effective portion of interest rate contracts | $ | — | $ | 852 | $ | 3,475 | Loan interest revenue | |||||||
Ineffective portion of interest rate contracts | — | 52 | 237 | Loan interest revenue | ||||||||||
Effective portion of interest rate contracts | (764 | ) | — | — | Time deposit interest expense | |||||||||
Effective portion of interest rate contracts | (223 | ) | — | — | Money market deposit interest expense | |||||||||
Amortization of losses on de-designated positions | (79 | ) | — | — | Deposits in banks and short-term investments interest revenue | |||||||||
Amortization of losses on de-designated positions | (198 | ) | — | — | Money market deposit interest expense | |||||||||
Amortization of losses on de-designated positions | (234 | ) | Federal Home Loan Bank advances interest expense | |||||||||||
Amortization of losses on de-designated positions | (512 | ) | — | — | Time deposit interest expense | |||||||||
(2,010 | ) | 904 | 3,712 | Total before tax | ||||||||||
782 | (352 | ) | (1,444 | ) | Tax (expense) or benefit | |||||||||
$ | (1,228 | ) | $ | 552 | $ | 2,268 | Net of tax | |||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | ||||||||||||||
Prior service cost | $ | (365 | ) | $ | (365 | ) | $ | (365 | ) | Salaries and employee benefits expense | ||||
Actuarial losses | — | (167 | ) | (250 | ) | Salaries and employee benefits expense | ||||||||
(365 | ) | (532 | ) | (615 | ) | Total before tax | ||||||||
142 | 207 | 240 | Tax benefit | |||||||||||
$ | (223 | ) | $ | (325 | ) | $ | (375 | ) | Net of tax | |||||
Total reclassifications for the period | $ | 2,552 | $ | 790 | $ | 7,433 | Net of tax | |||||||
Amounts shown above in parentheses reduce earnings |
2014 | 2013 | 2012 | ||||||||||
Series A - 6% fixed | $ | — | $ | 12 | $ | 12 | ||||||
Series B - 5% fixed until December 6, 2013, 9% thereafter | 159 | 10,401 | 10,465 | |||||||||
Series D - LIBOR plus 9.6875%, resets quarterly | 280 | 1,665 | 1,671 | |||||||||
Total preferred stock dividends | $ | 439 | $ | 12,078 | $ | 12,148 |
90 |
2014 | 2013 | 2012 | ||||||||||
Net income available to common stockholders | $ | 67,181 | $ | 261,062 | $ | 21,708 | ||||||
Income per common share: | ||||||||||||
Basic | 1.11 | 4.44 | .38 | |||||||||
Diluted | 1.11 | 4.44 | .38 | |||||||||
Weighted average common shares: | ||||||||||||
Basic | 60,588 | 58,787 | 57,857 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 2 | 1 | — | |||||||||
Warrants | — | 57 | — | |||||||||
Diluted | 60,590 | 58,845 | 57,857 |
2014 | 2013 | 2012 | ||||||||||
Current | $ | 1,224 | $ | 3,467 | $ | 1,050 | ||||||
Deferred | 37,524 | 23,785 | 9,446 | |||||||||
Increase (decrease) in valuation allowance | 702 | (265,440 | ) | (9,446 | ) | |||||||
Total income tax expense (benefit) | $ | 39,450 | $ | (238,188 | ) | $ | 1,050 |
91 |
2014 | 2013 | 2012 | ||||||||||
Pretax income at statutory rates | $ | 37,475 | $ | 12,234 | $ | 12,217 | ||||||
Add (deduct): | ||||||||||||
State taxes, net of federal benefit | 3,365 | 895 | 577 | |||||||||
Bank owned life insurance earnings | (209 | ) | (704 | ) | (444 | ) | ||||||
Adjustment to reserve for uncertain tax positions | (200 | ) | (426 | ) | (577 | ) | ||||||
Tax-exempt interest revenue | (757 | ) | (714 | ) | (816 | ) | ||||||
Nondeductible interest expense | 12 | 10 | 18 | |||||||||
Equity compensation | — | 676 | 255 | |||||||||
Tax credits | (250 | ) | (438 | ) | (460 | ) | ||||||
Change in state statutory tax rate | — | 1,003 | — | |||||||||
Change in valuation allowance affecting other comprehensive income | — | 12,174 | — | |||||||||
(Decrease) increase in valuation allowance | 702 | (265,440 | ) | (9,446 | ) | |||||||
Other | (688 | ) | 2,542 | (274 | ) | |||||||
Total income tax expense (benefit) | $ | 39,450 | $ | (238,188 | ) | $ | 1,050 |
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Allowances for loan losses | $ | 27,563 | $ | 29,672 | ||||
Net operating loss carry forwards | 184,015 | 219,863 | ||||||
Deferred compensation | 7,188 | 6,299 | ||||||
Reserve for losses on foreclosed properties | 254 | 678 | ||||||
Nonqualified share based compensation | 3,993 | 3,710 | ||||||
Accrued expenses | 2,107 | 2,663 | ||||||
Investment in low income housing tax credit partnerships | 1,856 | 1,335 | ||||||
Unamortized pension actuarial losses and prior service cost | 1,862 | 1,252 | ||||||
Acquired intangible assets | 593 | 326 | ||||||
Unrealized losses on securities available-for-sale | — | 2,056 | ||||||
Unrealized losses on cash flow hedges | 1,977 | — | ||||||
Other | 1,477 | 3,985 | ||||||
Total deferred tax assets | 232,885 | 271,839 | ||||||
Deferred tax liabilities: | ||||||||
Unrealized gains on securities available-for-sale | 1,340 | — | ||||||
Unrealized gains on cash flow hedges | — | 523 | ||||||
Premises and equipment | 2,452 | 2,812 | ||||||
Loan origination costs | 4,342 | 4,234 | ||||||
Gain from acquisition of Southern Community Bank | 306 | 816 | ||||||
Prepaid expenses | 626 | 836 | ||||||
Uncertain tax positions | 4,195 | — | ||||||
Total deferred tax liabilities | 13,261 | 9,221 | ||||||
Less valuation allowance | 4,121 | 4,100 | ||||||
Net deferred tax asset | $ | 215,503 | $ | 258,518 |
92 |
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 4,503 | $ | 5,069 | $ | 5,985 | ||||||
Additions based on tax positions related to prior years | — | — | 130 | |||||||||
Additions based on tax positions related to the current year | 374 | 352 | 500 | |||||||||
Decreases resulting from a lapse in the applicable statute of limitations | (682 | ) | (918 | ) | (957 | ) | ||||||
Decreases based on settlements with taxing authorities | — | — | (589 | ) | ||||||||
Balance at end of year | $ | 4,195 | $ | 4,503 | $ | 5,069 |
93 |
2014 | 2013 | |||||||
Discount rate for disclosures | 4.00 | % | 4.50 | % | ||||
Discount rate for net periodic benefit cost | 4.50 | % | 4.00 | % | ||||
Rate of compensation increase | N/A | NA | ||||||
Measurement date | 12/31/2014 | 12/31/2013 |
94 |
2014 | 2013 | |||||||
Accumulated benefit obligation: | ||||||||
Accumulated benefit obligation - beginning of year | $ | 13,320 | $ | 13,155 | ||||
Service cost | 341 | 465 | ||||||
Interest cost | 579 | 533 | ||||||
Actuarial (gains) losses | 1,933 | (561 | ) | |||||
Benefits paid | (304 | ) | (272 | ) | ||||
Accumulated benefit obligation - end of year | 15,869 | 13,320 |
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | 341 | $ | 465 | $ | 597 | ||||||
Interest cost | 579 | 533 | 537 | |||||||||
Amortization of prior service cost | 365 | 365 | 365 | |||||||||
Amortization of net losses | — | 167 | 250 | |||||||||
Net periodic benefit cost | 1,285 | 1,530 | 1,749 | |||||||||
95 |
Fair Value | |||||||||||||||
Balance Sheet | December 31, | December 31, | |||||||||||||
Interest Rate Products | Location | 2014 | 2013 | ||||||||||||
Cash flow hedge of money market deposits | Other assets | $ | — | $ | 4,782 | ||||||||||
Fair value hedge of corporate bonds | Other assets | — | 3,939 | ||||||||||||
$ | — | $ | 8,721 | ||||||||||||
Cash flow hedge of short-term debt | Other liabilities | $ | — | $ | 3,368 | ||||||||||
Cash flow hedge of money market deposits | Other liabilities | 350 | $ | — | |||||||||||
Fair value hedge of brokered CD’s | Other liabilities | 5,817 | 19,970 | ||||||||||||
Fair value hedge of corporate bonds | Other liabilities | — | 2,308 | ||||||||||||
$ | 6,167 | $ | 25,646 |
Fair Value | ||||||||||
Balance Sheet | December 31, | December 31, | ||||||||
Interest Rate Products | Location | 2014 | 2013 | |||||||
Customer swap positions | Other assets | $ | 3,433 | $ | 898 | |||||
Dealer offsets to customer swap positions | Other assets | 128 | 1,347 | |||||||
Bifurcated embedded derivatives | Other assets | 12,262 | 12,867 | |||||||
Offsetting positions for de-designated cash flow hedges | Other assets | 4,776 | — | |||||||
$ | 20,599 | $ | 15,112 | |||||||
Customer swap positions | Other liabilities | $ | 129 | $ | 1,347 | |||||
Dealer offsets to customer swap positions | Other liabilities | 3,456 | 915 | |||||||
Dealer offsets to bifurcated embedded derivatives | Other liabilities | 17,467 | 18,324 | |||||||
De-designated cash flow hedge | Other liabilities | 4,778 | — | |||||||
$ | 25,830 | $ | 20,586 |
96 |
97 |
Location of Gain | ||||||||||||||||||||||||||
(Loss) Recognized | Amount of Gain (Loss) Recognized in | Amount of Gain (Loss) Recognized in | ||||||||||||||||||||||||
in Income | Income on Derivative | Income on Hedged Item | ||||||||||||||||||||||||
on Derivative | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Fair value hedges of brokered CD’s | Interest expense | $ | 13,400 | $ | (16,433 | ) | $ | 540 | $ | (14,357 | ) | $ | 16,981 | $ | 330 | |||||||||||
Fair value hedges of corporate bonds | Interest revenue | (2,487 | ) | 6,285 | — | 2,163 | (5,765 | ) | — | |||||||||||||||||
$ | 10,913 | $ | (10,148 | ) | $ | 540 | $ | (12,194 | ) | $ | 11,216 | $ | 330 |
Amount of Gain (Loss) Recognized in | Gain (Loss) Reclassified from Accumulated Other | |||||||||||||||||||||||||||||||||||||
Other Comprehensive Income on | Comprehensive Income into Income | Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||||||
Derivative (Effective Portion) | (Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | Location | 2014 | 2013 | 2012 | Location | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Interest revenue | $ | (79 | ) | $ | 904 | $ | 3,712 | |||||||||||||||||||||||||||||||
Interest expense | (1,931 | ) | — | — | ||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (8,437 | ) | $ | 10,084 | $ | (8,739 | ) | $ | (2,010 | ) | $ | 904 | $ | 3,712 | Interest expense | $ | (107 | ) | $ | 70 | $ | — | |||||||||||||||
In certain cases, the estate of deceased brokered certificate of deposit holders may put the certificate of deposit back to the issuing bank at par upon the death of the holder. When these death puts occur, a gain or loss is recognized for the difference between the carrying value and the par amount of the deposits put back. The change in the fair value of brokered time deposits that are being hedged in fair value hedging relationships reported in the table above include gains and losses from death puts and such gains and losses are included in the amount of reported ineffectiveness gains or losses.
98 |
Regulatory | United Community Banks, Inc. | |||||||||||||||||||||||
Guidelines | (consolidated) | United Community Bank | ||||||||||||||||||||||
Well | ||||||||||||||||||||||||
Minimum | Capitalized | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Risk-based ratios: | ||||||||||||||||||||||||
Tier 1 capital | 4.0 | % | 6.0 | % | 12.05 | % | 12.74 | % | 12.84 | % | 13.55 | % | ||||||||||||
Total capital | 8.0 | 10.0 | 13.30 | 13.99 | 14.09 | 14.80 | ||||||||||||||||||
Leverage ratio | 3.0 | 8.69 | 9.08 | 9.25 | 9.61 | |||||||||||||||||||
Tier 1 capital | $ | 642,663 | $ | 649,162 | $ | 683,332 | $ | 686,687 | ||||||||||||||||
Total capital | 709,408 | 713,063 | 749,927 | 750,216 | ||||||||||||||||||||
Risk-weighted assets | 5,332,822 | 5,097,091 | 5,320,615 | 5,066,948 | ||||||||||||||||||||
Average total assets | 7,396,450 | 7,150,360 | 7,385,048 | 7,142,050 |
99 |
2014 | 2013 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 878,160 | $ | 747,170 | ||||
Letters of credit | 19,861 | 19,846 | ||||||
Minimum Lease Payments | 10,877 | 6,310 |
100 |
Restricted Stock | Options | |||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | Aggregate | |||||||||||||||||||||
Grant Date | Exercise | Remaining | Intrinsic | |||||||||||||||||||||
Shares | Fair Value | Shares | Price | Term (Yrs.) | Value (000’s) | |||||||||||||||||||
December 31, 2011 | 414,644 | $ | 12.19 | 583,647 | $ | 94.48 | ||||||||||||||||||
Granted | 200,612 | 8.73 | — | — | ||||||||||||||||||||
Exercised | (114,673 | ) | 14.77 | — | — | |||||||||||||||||||
Cancelled | (14,999 | ) | 10.25 | (101,119 | ) | 78.98 | ||||||||||||||||||
December 31, 2012 | 485,584 | 10.72 | 482,528 | 97.73 | ||||||||||||||||||||
Granted | 876,583 | 14.74 | 5,000 | 15.09 | ||||||||||||||||||||
Exercised | (195,366 | ) | 13.16 | — | — | |||||||||||||||||||
Cancelled | (93,125 | ) | 8.78 | (136,756 | ) | 94.37 | ||||||||||||||||||
December 31, 2013 | 1,073,676 | 13.73 | 350,772 | 97.87 | ||||||||||||||||||||
Granted | 97,016 | 17.33 | 10,000 | 16.71 | ||||||||||||||||||||
Exercised | (336,691 | ) | 12.23 | — | — | |||||||||||||||||||
Cancelled | (4,800 | ) | 13.78 | (47,217 | ) | 110.33 | ||||||||||||||||||
December 31, 2014 | 829,201 | 14.76 | 313,555 | 93.40 | 2.78 | $ | 120 | |||||||||||||||||
Vested / Exercisable | ||||||||||||||||||||||||
at December 31, 2014 | 7,580 | 9.90 | 297,305 | 97.66 | 2.44 | 63 | ||||||||||||||||||
101 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Weighted | Average | Weighted | ||||||||||||||||||||
Shares | Range | Average Price | Remaining Life | Shares | Average Price | |||||||||||||||||
26,823 | $ | 10.00 - 30.00 | $ | 14.96 | 8.02 | 10,573 | $ | 14.15 | ||||||||||||||
44,777 | 30.01 - 50.00 | 31.67 | 4.15 | 44,777 | 31.67 | |||||||||||||||||
72,318 | 50.01 - 70.00 | 66.31 | 3.13 | 72,318 | 66.31 | |||||||||||||||||
2,075 | 70.01 - 90.00 | 77.53 | 3.25 | 2,075 | 77.53 | |||||||||||||||||
28,950 | 90.01 - 110.00 | 107.28 | 0.32 | 28,950 | 107.28 | |||||||||||||||||
17,228 | 110.01 - 130.00 | 111.38 | 0.49 | 17,228 | 111.38 | |||||||||||||||||
115,981 | 130.01 - 150.00 | 143.69 | 1.80 | 115,981 | 143.69 | |||||||||||||||||
5,403 | 150.01 - 170.00 | 152.10 | 2.21 | 5,403 | 152.10 | |||||||||||||||||
313,555 | 10.00 - 170.00 | 93.40 | 2.78 | 297,305 | 97.66 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||
Expected volatility | 66 | % | 30 | % | NA | ||||
Expected dividend yield | 1.0 | % | 0.0 | % | NA | ||||
Expected life (in years) | 6.25 | 6.25 | NA | ||||||
Risk free rate | 2.1 | % | 2.0 | % | NA |
102 |
Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access. | |
Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. | |
Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. United’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. |
103 |
104 |
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury securities | $ | 105,709 | $ | — | $ | — | $ | 105,709 | |||||||||
U.S. Agencies | — | 36,299 | — | 36,299 | |||||||||||||
State and political subdivisions | — | 20,233 | — | 20,233 | |||||||||||||
Mortgage-backed securities | — | 996,820 | — | 996,820 | |||||||||||||
Corporate bonds | — | 164,878 | 750 | 165,628 | |||||||||||||
Asset-backed securities | — | 455,928 | — | 455,928 | |||||||||||||
Other | — | 2,117 | — | 2,117 | |||||||||||||
Deferred compensation plan assets | 3,864 | — | — | 3,864 | |||||||||||||
SBA servicing rights | — | — | 2,551 | 2,551 | |||||||||||||
Derivative financial instruments | — | 8,337 | 12,262 | 20,599 | |||||||||||||
Total assets | $ | 109,573 | $ | 1,684,612 | $ | 15,563 | 1,809,748 | ||||||||||
Liabilities: | |||||||||||||||||
Deferred compensation plan liability | $ | 3,864 | $ | — | $ | — | $ | 3,864 | |||||||||
Derivative financial instruments | — | 13,018 | 18,979 | 31,997 | |||||||||||||
Total liabilities | $ | 3,864 | $ | 13,018 | $ | 18,979 | $ | 35,861 | |||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Securities available for sale | |||||||||||||||||
State and political subdivisions | $ | — | $ | 23,242 | $ | — | $ | 23,242 | |||||||||
Mortgage-backed securities | — | 1,145,347 | — | 1,145,347 | |||||||||||||
Corporate bonds | — | 249,946 | 350 | 250,296 | |||||||||||||
Asset-backed securities | — | 410,633 | — | 410,633 | |||||||||||||
Other | — | 2,699 | — | 2,699 | |||||||||||||
Deferred compensation plan assets | 3,496 | — | — | 3,496 | |||||||||||||
Derivative financial instruments | — | 23,833 | — | 23,833 | |||||||||||||
Total assets | $ | 3,496 | $ | 1,855,700 | $ | 350 | $ | 1,859,546 | |||||||||
Liabilities: | |||||||||||||||||
Deferred compensation plan liability | $ | 3,496 | $ | — | $ | — | $ | 3,496 | |||||||||
Derivative financial instruments | — | 46,232 | — | 46,232 | |||||||||||||
Total liabilities | $ | 3,496 | $ | 46,232 | $ | — | $ | 49,728 |
105 |
2014 | 2013 | 2012 | ||||||||||||||||||||||
Derivative Asset | Derivative Liability | SBA servicing rights | Securities Available-for- Sale | Securities Available-for- Sale | Securities Available-for- Sale | |||||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | 350 | $ | 350 | $ | 350 | ||||||||||||
Purchases | — | — | 2,133 | — | — | — | ||||||||||||||||||
Additions | — | — | 832 | — | — | — | ||||||||||||||||||
Sales and settlements | — | — | (152 | ) | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | 400 | — | — | ||||||||||||||||||
Amounts included in earnings - fair value adjustments | — | — | (262 | ) | — | — | — | |||||||||||||||||
Transfers between valuation levels, net | 12,262 | 18,979 | — | — | — | — | ||||||||||||||||||
Balance at end of period | $ | 12,262 | $ | 18,979 | $ | 2,551 | $ | 750 | $ | 350 | $ | 350 |
Level 3 Assets | 2014 Fair Value | 2013 Fair Value | Valuation Technique | Unobservable Inputs | Weighted Average | ||||||||||
SBA Servicing Rights | $ | 2,551 | $ | — | Discounted cash flow | Discount rate Prepayment Rate | 12.0 6.70 | % % | |||||||
Corporate Bonds | 750 | 350 | Indicative bid provided by a broker | Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company | N/ | A | |||||||||
Derivatives assets | 12,262 | — | Dealer Priced | Dealer Priced | N/ | A | |||||||||
Derivative liabilities | 18,979 | — | Dealer Priced | Dealer Priced | N/ | A |
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Loans | $ | — | $ | — | $ | 83,541 | $ | 83,541 | ||||||||
Foreclosed properties | 1,555 | 1,555 | ||||||||||||||
Total | $ | — | $ | — | $ | 85,096 | $ | 85,096 | ||||||||
December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Loans | $ | — | $ | — | $ | 82,798 | $ | 82,798 | ||||||||
Foreclosed properties | 3,747 | 3,747 | ||||||||||||||
Total | $ | — | $ | — | $ | 86,545 | $ | 86,545 |
106 |
107 |
The carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis in United’s balance sheet at December 31, 2014 and 2013 are as follows (in thousands):
Carrying | Fair Value Level | |||||||||||||||||||
December 31, 2014 | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | ||||||||||||||||||||
Securities held to maturity | $ | 415,267 | $ | — | $ | 425,233 | $ | — | $ | 425,233 | ||||||||||
Loans, net | 4,600,500 | — | — | 4,549,027 | 4,710,559 | |||||||||||||||
Mortgage loans held for sale | 13,737 | — | 14,139 | — | 14,139 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 6,326,513 | — | 6,328,264 | — | 6,328,264 | |||||||||||||||
Federal Home Loan Bank advances | 270,125 | — | 270,125 | — | 270,125 | |||||||||||||||
Long-term debt | 129,865 | — | — | 132,814 | 132,814 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Securities held to maturity | 479,742 | — | 485,585 | — | 485,585 | |||||||||||||||
Loans, net | 4,252,504 | — | — | 4,165,591 | 4,165,591 | |||||||||||||||
Mortgage loans held for sale | 10,319 | — | 10,529 | — | 10,529 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 6,201,505 | — | 6,204,815 | — | 6,204,815 | |||||||||||||||
Federal Home Loan Bank advances | 120,125 | — | 120,125 | — | 120,125 | |||||||||||||||
Long-term debt | 129,865 | — | — | 130,262 | 130,262 |
(24) | Subsequent Events |
108 |
(25) | Condensed Financial Statements of United Community Banks, Inc. (Parent Only) |
2014 | 2013 | 2012 | ||||||||||
Dividends from bank and other subsidiaries | $ | 132,000 | $ | 50,000 | $ | — | ||||||
Shared service fees from subsidiaries | 8,057 | 6,764 | 6,714 | |||||||||
Other | 424 | 1,217 | 1,169 | |||||||||
Total income | 140,481 | 57,981 | 7,883 | |||||||||
Interest expense | 11,550 | 10,977 | 10,201 | |||||||||
Other expense | 9,868 | 8,658 | 8,717 | |||||||||
Total expenses | 21,418 | 19,635 | 18,918 | |||||||||
Income tax benefit | 2,357 | 24,862 | 398 | |||||||||
Income (loss) before equity in undistributed loss of subsidiaries | 121,420 | 63,208 | (10,637 | ) | ||||||||
Equity in undistributed earnings of subsidiaries | (53,800 | ) | 209,932 | 44,493 | ||||||||
Net income | $ | 67,620 | $ | 273,140 | $ | 33,856 |
Assets | ||||||||
2014 | 2013 | |||||||
Cash | $ | 31,967 | $ | 36,338 | ||||
Investment in subsidiaries | 816,919 | 869,665 | ||||||
Other assets | 32,295 | 34,972 | ||||||
Total assets | $ | 881,181 | $ | 940,975 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Long-term debt | $ | 129,865 | $ | 129,865 | ||||
Other liabilities | 11,739 | 15,395 | ||||||
Total liabilities | 141,604 | 145,260 | ||||||
Shareholders’ equity | 739,577 | 795,715 | ||||||
Total liabilities and shareholders’ equity | $ | 881,181 | $ | 940,975 |
109 |
(25) | Condensed Financial Statements of United Community Banks, Inc. (Parent Only), continued |
2014 | 2013 | 2012 | ||||||||||
Operating activities: | ||||||||||||
Net income | $ | 67,620 | $ | 273,140 | $ | 33,856 | ||||||
Adjustments to reconcile net income to net cash used in | ||||||||||||
operating activities: | ||||||||||||
Equity in undistributed earnings of the subsidiaries | 53,800 | (209,932 | ) | (44,493 | ) | |||||||
Depreciation, amortization and accretion | 22 | 82 | 142 | |||||||||
Stock-based compensation | 4,304 | 3,045 | 1,976 | |||||||||
Change in assets and liabilities: | ||||||||||||
Other assets | 2,529 | (29,168 | ) | 21,722 | ||||||||
Other liabilities | (9,177 | ) | 5,682 | (20,483 | ) | |||||||
Net cash provided by (used in) operating activities | 119,098 | 42,849 | (7,280 | ) | ||||||||
Investing activities: | ||||||||||||
Purchases and disposal of premises and equipment | (44 | ) | — | — | ||||||||
Sales and paydowns of securities available for sale | 537 | 586 | — | |||||||||
Net cash (used in) provided by investing activities | 493 | 586 | — | |||||||||
Financing activities: | ||||||||||||
Repayment of subordinated notes | — | (35,000 | ) | (30,500 | ) | |||||||
Proceeds from issuance of senior notes | — | 40,000 | 35,000 | |||||||||
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans | 469 | 796 | 894 | |||||||||
Proceeds from issuance of common stock, net of offering costs | 12,206 | — | — | |||||||||
Proceeds from exercise of warrant | — | 19,389 | — | |||||||||
Repurchase of outstanding warrant | (12,000 | ) | — | — | ||||||||
Retirement of preferred stock | (121,613 | ) | (75,217 | ) | — | |||||||
Cash dividends on common stock | (1,810 | ) | — | — | ||||||||
Cash dividends on Series A preferred stock | — | (15 | ) | (12 | ) | |||||||
Cash dividends on Series B preferred stock | (802 | ) | (9,440 | ) | (9,000 | ) | ||||||
Cash dividends on Series D preferred stock | (412 | ) | (1,657 | ) | (1,687 | ) | ||||||
Net cash used in financing activities | (123,962 | ) | (61,144 | ) | (5,305 | ) | ||||||
Net change in cash | (4,371 | ) | (17,709 | ) | (12,585 | ) | ||||||
Cash at beginning of year | 36,338 | 54,047 | 66,632 | |||||||||
Cash at end of year | $ | 31,967 | $ | 36,338 | $ | 54,047 |
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ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
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ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES. |
(a) | 1. | Financial Statements. | |
The following consolidated financial statements are located in Item 8 of this report: | |||
Report of Independent Registered Public Accounting Firm | |||
Consolidated Statement of Income - Years ended December 31, 2014, 2013, and 2012 | |||
Consolidated Balance Sheet - December 31, 2014 and 2013 | |||
Consolidated Statement of Changes in Shareholders’ Equity - Years ended December 31, 2014, 2013, and 2012 | |||
Consolidated Statement of Cash Flows - Years ended December 31, 2014, 2013, and 2012 | |||
Notes to Consolidated Financial Statements | |||
2. | Financial Statement Schedules. | ||
Schedules to the consolidated financial statements are omitted, as the required information is not applicable. | |||
3. | Exhibits. | ||
The following exhibits are required to be filed with this report by Item 601 of Regulation S-K: |
Exhibit No. | Exhibit | ||
2.1 | Agreement and Plan of Merger, dated January 27, 2015 by and between United Community Banks, Inc. and MoneyTree Corporation (incorporated herein by reference to exhibit 2.1 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 001-35095, filed with the SEC on January 28, 2015) | ||
3.1 | Restated Articles of Incorporation of United Community Banks, Inc., as amended (incorporated herein by reference to Exhibit 3.1 to United Community Banks, Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2011, filed with the SEC on August 9, 2011). | ||
3.2 | Amended and Restated Bylaws of United Community Banks, Inc., as amended (incorporated herein by reference to Exhibit 3.2 to United Community Banks, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2011, filed with the SEC on May 4, 2011). | ||
4.1 | See Exhibits 3.1 and 3.2 for provisions of the Restated Articles of Incorporation of United Community Banks, Inc., as amended, and the Amended and Restated Bylaws, as amended, of United Community Banks, Inc., which define the rights of security holders. | ||
10.1 | United Community Banks, Inc.’s Profit Sharing Plan, amended and restated as of January 1, 2001 (incorporated herein by reference to Exhibit 4.3 to United Community Banks, Inc.’s Registration Statement on Form S-8, File No. 333-86876, filed with the SEC on April 24, 2002).* | ||
10.2 | Amendment No. 1 to United Community Banks, Inc.’s Profit Sharing Plan, dated as of March 15, 2002 (incorporated herein by reference to Exhibit 4.4 to United Community Banks, Inc.’s Registration Statement on Form S-8, File No. 333-86876, filed with the SEC on April 24, 2002).* |
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Exhibit No. | Exhibit | ||
10.3 | Split-Dollar Agreement between United Community Banks, Inc. and Jimmy C. Tallent dated June 1, 1994 (incorporated herein by reference to Exhibit 10.11 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1994, File No. 0-21656).* | ||
10.4 | United Community Banks, Inc.’s Amended and Restated 2000 Key Employee Stock Option Plan (incorporated herein by reference to Exhibit 10.1 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 000-21656, filed with the SEC on May 1, 2007).* | ||
10.5 | Form of Amended and Restated Change of Control Severance Agreement by and between United Community Banks, Inc. and Jimmy C. Tallent, H. Lynn Harton, Rex S. Schuette, and Bill Gilbert (incorporated herein by reference to Exhibit 10.8 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 000-21656, filed with the SEC on February 27, 2009).* | ||
10.6 | United Community Banks, Inc.’s Amended and Restated Modified Retirement Plan, effective as of January 1, 2005 (incorporated herein by reference to Exhibit 10.10 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 000-21656, filed with the SEC on February 27, 2009).* | ||
10.7 | United Community Banks, Inc.’s Amended and Restated Deferred Compensation Plan, effective as of January 1, 2005 (incorporated herein by reference to Exhibit 10.11 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 000-21656, filed with the SEC on February 27, 2009).* | ||
10.8 | United Community Banks, Inc. Amended and Restated Dividend Reinvestment and Share Purchase Plan (incorporated herein by reference to Exhibit 4 to United Community Banks, Inc.’s Registration Statement on Form S-3D, File No. 333-197026, filed with the SEC on June 25, 2014).* | ||
10.9 | United Community Banks, Inc. Employee Stock Purchase Plan, effective as of December 20, 2005 (incorporated herein by reference to Exhibit 4 to United Community Banks, Inc.’s Registration Statement on Form S-8, File No. 333-130489, filed with the SEC on December 20, 2005).* | ||
10.10 | United Community Banks, Inc.’s Management Incentive Plan, effective as of January 1, 2007 (incorporated herein by reference to Exhibit 10.5 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 000-21656, filed with the SEC on May 1, 2007).* | ||
10.11 | Amendment No. 1 to United Community Banks, Inc.’s Amended and Restated 2000 Key Employee Stock Option Plan dated April 13, 2007 (incorporated herein by reference to Exhibit 10.1 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 000-21656, filed with the SEC on April 13, 2007).* | ||
10.12 | Investment Agreement, dated as of March 16, 2011, between United Community Banks, Inc. and Corsair Georgia, L.P. (incorporated herein by reference to Exhibit 10.1 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 001-35095, filed with the SEC on March 17, 2011).* | ||
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Exhibit No. | Exhibit | ||
10.13 | Employment Agreement, dated as of September 14, 2012, between United Community Bank and H. Lynn Harton (incorporated herein by reference to Exhibit 10.1 to United Community Banks, Inc.’s Current Report on Form 8-K, File No. 001-35095, filed with the SEC on September 19, 2012).* | ||
10.14 | Credit Agreement dated as of January 7, 2014, between United Community Banks, Inc. and Synovus Bank. (incorporated herein by reference to Exhibit 10.21 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2013, File No. 001-35095, filed with the SEC on February 28, 2014). | ||
10.15 | Form of Incentive Stock Option Award Agreement.* | ||
10.16 | Form of Nonqualified Stock Option Award Agreement.* | ||
10.17 | Form of Restricted Stock Unit Award Agreement.* | ||
14 | Code of Ethical Conduct (incorporated herein by reference to Exhibit 14 to United Community Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2003, File No. 000-21656, filed with the SEC on March 8, 2004). | ||
21 | Subsidiaries of United. | ||
23.1 | Consent of Independent Registered Public Accounting Firm | ||
23.2 | Consent of Independent Registered Public Accounting Firm | ||
24 | Power of Attorney of certain officers and directors of United (included on Signature Page) | ||
31.1 | Certification by Jimmy C. Tallent, Chairman and Chief Executive Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification by Rex S. Schuette, Executive Vice President and Chief Financial Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.INS** | XBRL Report Instance Document | ||
101.SCH** | XBRL Taxonomy Extension Schema Document | ||
101.CAL** | XBRL Taxonomy Calculation Linkbase Document | ||
101.LAB** | XBRL Taxonomy Label Linkbase Document | ||
101.PRE** | XBRL Presentation Linkbase Document | ||
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document |
* | Management contract or compensatory plan or arrangement required to be filed as an Exhibit to this Annual Report on Form 10-K pursuant to Item 15(b) of Form 10-K. |
** | Indicates furnished herewith. |
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/s/ Jimmy C. Tallent | /s/ Rex S. Schuette | |||
Jimmy C. Tallent | Rex S. Schuette | |||
Chairman and Chief Executive Officer | Executive Vice President and Chief Financial Officer | |||
(Principal Executive Officer) | (Principal Financial Officer) |
/s/ Alan H. Kumler | ||||
Alan H. Kumler | ||||
Senior Vice President, Chief Accounting Officer | ||||
(Principal Accounting Officer) |
/s/ Jimmy C. Tallent | /s/ Robert Blalock | |||
Jimmy C. Tallent | Robert Blalock | |||
Chairman and Chief Executive Officer | Director | |||
(Principal Executive Officer) | ||||
/s/ Clifford V. Brokaw |
/s/ Rex S. Schuette | Clifford V. Brokaw | |||
Rex S. Schuette | Director | |||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) | /s/ L. Cathy Cox | |||
L. Cathy Cox |
/s/ Alan H. Kumler | Director | |||
Alan H. Kumler | ||||
Senior Vice President, Chief Accounting Officer | /s/ Steven J. Goldstein | |||
(Principal Accounting Officer) | Steven J. Goldstein | |||
Director |
/s/ H. Lynn Harton | ||||
H. Lynn Harton | /s/ Thomas A. Richlovsky | |||
President, Chief Operating Officer and Director | Thomas A. Richlovsky | |||
Director |
/s/ W.C. Nelson, Jr. | ||||
W. C. Nelson, Jr. | /s/ Tim Wallis | |||
Lead Independent Director | Tim Wallis | |||
Director |
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Exhibit No. | Description | ||
10.15 | Form of Incentive Stock Option Award Agreement. | ||
10.16 | Form of Nonqualified Stock Option Award Agreement. | ||
10.17 | Form of Restricted Stock Unit Award Agreement. | ||
21 | Subsidiaries of United. | ||
23.1 | Consent of Independent Registered Public Accounting Firm. | ||
23.2 | Consent of Independent Registered Public Accounting Firm. | ||
24 | Power of Attorney of certain officers and directors of United (included on Signature Page). | ||
31.1 | Certification by Jimmy C. Tallent, Chairman and Chief Executive Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification by Rex S. Schuette, Executive Vice President and Chief Financial Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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