EXHIBIT 99.1
[UNITED COMMUNITY BANKS LOGO]
For Immediate Release
January 27, 2004
For more information: Rex S. Schuette
Chief Financial Officer
706-781-2265
rex_schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
13% GAIN IN OPERATING EARNINGS PER SHARE
FOR FOURTH QUARTER 2003
HIGHLIGHTS:
- - Record 2003 Net Operating Earnings of $1.68 Per Share, Up 14% From a
Year Ago
- - Loan Demand, Disciplined Execution Helped Drive Growth for Quarter and
Year
- - Stable Net Interest Margin, Strong Credit Quality Provide Foundation
for Performance
- - Company Again Achieves Long-Term Financial Goals of Sustained
Double-Digit EPS Growth and Return on Tangible Equity Above 16%
BLAIRSVILLE, GA, January 27, 2004 - United Community Banks, Inc. (Nasdaq: UCBI),
Georgia's third largest bank holding company, today announced fourth quarter
results that included a 24% rise in net operating income, a 13% gain in net
operating earnings per share, and a 21% increase in total revenue from the same
period last year. For the fourth quarter of 2003, net operating income rose to a
record $10.6 million from $8.6 million a year earlier. Diluted operating
earnings per share of $.44 increased 13% from $.39 for the fourth quarter a year
ago. Total revenue, on a taxable equivalent basis, was $44.1 million compared
with $36.6 million for the fourth quarter of 2002. Also on an operating basis,
return on tangible equity was 19.72% compared with 17.68% a year ago and return
on assets was 1.06% compared with 1.08% a year ago.
The fourth quarter performance helped the company gain 20% in net operating
income for the full year. For the year 2003, net operating income totaled $39.5
million, compared with $32.8
million for 2002. Diluted operating earnings per share rose 14% to a record
$1.68 from $1.48 a year earlier, as total revenue of $170.6 million increased
$27.2 million, or 19%, from a year ago. Return on tangible equity for 2003 was
19.24% compared with 17.88% a year ago. At December 31, 2003, book value per
common share was $12.70, up 23% from a year ago.
"United Community Banks continued to execute according to plan during the fourth
quarter of 2003," said Jimmy Tallent, president and chief executive officer.
"Loan demand for the quarter remained strong across all our markets, providing
an opportunity for our employees to deliver the highest level of customer
service. This, in turn, provided us with a solid foundation to continue to build
our business and expand our franchise." At December 31, 2003, assets totaled
$4.1 billion - up 27% from last year-end. "This core growth was achieved in a
disciplined, step-by-step process throughout the year, without compromising
credit quality in a challenging economic environment," Tallent added.
"For both the fourth quarter and full year, we again achieved our stated goals
of sustained double-digit growth in operating earnings-per-share and a return on
tangible equity, which excludes the effects of acquisition-related intangibles,
above 16%," Tallent said.
Net operating income for the fourth quarter and the full year of 2003 excludes
merger-related charges. For the fourth quarter, merger-related charges were $580
thousand pre-tax, or $383 thousand after-tax, and $.02 per diluted share. For
the full year, merger-related charges were $2.1 million pre-tax, or $1.4 million
after-tax, and $.06 per diluted share. The merger-related charges were for
legal, investment advisor and other professional fees, as well as the
termination of equipment leases and conversion costs related to the acquisition
of three branch offices in western North Carolina completed during the fourth
quarter of 2003 and the mergers with First Georgia Holding, Inc. ("First Georgia
Bank") completed on May 1, 2003, and First Central Bancshares, Inc. ("First
Central Bank") completed on March 31, 2003. Including those merger-related
charges, net income, diluted earnings per share, return on equity and return on
assets for the quarter ended December 31, 2003 were $10.2 million, $.42, 14.19%
and 1.02%, respectively. For the full year, net income, diluted earnings per
share, return on equity and return on assets
including the merger-related charges were $38.1 million, $1.62, 14.79%, and
1.02%, respectively.
"Our ability to service the needs of our customers, combined with the strength
of our markets relative to the national economy, helped increase loans by $313
million, or 13% internal core growth, from a year ago," Tallent said. "In
addition, the acquisitions of First Central Bank, First Georgia Bank and three
branch offices in western North Carolina contributed $321 million in new loans,
bringing our total loan growth for the year to $634 million, or 27%. This
exceptional core loan growth and our acquisitions pushed total assets to $4.1
billion at December 31, 2003 - more than double our size as compared to five
years ago. And, over 70% of this growth was organic."
Taxable equivalent net interest revenue for the fourth quarter rose $7.2
million, or 24%, to $36.8 million from the same period a year ago. Acquisitions
during the year, contributed approximately $4.0 million of this increase,
leaving the core growth rate at approximately 12%. "Even without the
acquisitions and with the weak national economy, we still achieved solid growth
in loans and new business," Tallent said.
Taxable equivalent net interest margin for the fourth quarter was 3.96% versus
4.03% a year ago. "Despite this environment of historically low interest rates,
United Community Banks has maintained a net interest margin near the 4% level
for the past five quarters and we expect the margin to remain near this level
for 2004," Tallent said. "With a stable margin at the 4% level, we are prepared
to maintain our earnings momentum by achieving a strong base of core business
growth combined with continued focus on expense controls."
The fourth quarter provision for loan losses was $1.8 million, unchanged from a
year earlier and up $300 thousand from the third quarter of 2003. Non-performing
assets totaled $7.6 million and decreased $.4 million from a year ago, while
loans outstanding increased $634 million. Non-performing assets as a percentage
of total assets were .19% at December 31, 2003, compared with .25% at December
31, 2002. "Our excellent credit quality continues to be the foundation for
superior financial performance," Tallent said. "Credit quality remains sound
thanks to the tireless efforts of our exceptional team of bankers. Our strategy
of securing loans with hard assets remains the key to our credit quality
success."
Fee revenue of $9.1 million for the fourth quarter increased $.3 million, or 3%,
from $8.8 million a year ago. Mortgage loan and related fees were $1.8 million
and down $.9 million from a year ago, due to the lower level of mortgage
refinancing activity caused by a rise in long-term interest rates. Service
charges and fees on deposit accounts were $5.0 million, up $1.4 million due to
the recent acquisitions, increasing popularity of new products and services
introduced last year, and growth in transactions and new accounts. Tallent
commented, "As part of our balance sheet outlook and strategy during the fourth
quarter of 2003, fee revenue was reduced by net charges of $150 thousand, this
included $787 thousand of charges for the early prepayment of higher-rate
Federal Home Loan Bank advances, which was partially offset by taking securities
gains of $622 thousand--both part of the same overall balance sheet management
strategy. A similar strategy and restructuring took place during the fourth
quarter of 2002."
Operating expenses were $27.6 million, up $4.6 million, or 20%, from the fourth
quarter of 2002. Included in the fourth quarter of 2003 were operating expenses
for the two banks merged earlier this year and the three branches purchased in
the fourth quarter, which totaled $3.9 million, leaving the underlying core
expense growth rate at 4%. Salaries and employee benefits of $17.4 million
increased $2.4 million, or 16%, with approximately $2.0 million of this increase
resulting from the recent acquisitions. The balance of the increase was due to
normal merit increases for staff that was partially offset by lower incentive
compensation associated with the slowdown in mortgage refinancing activities.
Staff levels at December 31, 2003, excluding acquisitions, were up only five
persons from a year ago. Communications and equipment expenses of $2.3 million
increased $.4 million, or 24%, primarily resulting from recent acquisitions.
Excluding the acquisitions, communications and equipment expenses increased 9%,
due to depreciation and amortization costs for software, telecommunications, and
technology equipment added over the last twelve months. Increases in all other
operating expense categories were primarily due to the acquisitions and business
growth.
"We continue to diligently monitor and control expenses while growing our
customer base and revenue," Tallent said. "Excluding acquisitions, total revenue
for the quarter increased 7% while operating expenses rose 4%. This provided a
positive operating leverage of 3%, which contributed to our 13% growth in
diluted earnings per share for the fourth quarter. Our operating efficiency
ratio was 59.81% compared with 59.94% a year ago. We are striving for a
long-term efficiency ratio in the range of 58% to 60%, which we believe is
reasonable given our service-oriented community banking model," Tallent added.
"Looking forward to 2004, we believe United Community Banks remains on target to
achieve earnings per share growth within our long-term goal of 12% to 15%,"
Tallent said. "We anticipate core loan growth in the range of 10% to 14% through
2004, and we expect our net interest margin to remain near the 4% level. Our
outlook is based on flat short-term rates through 2004 and other assumptions
that include a continued, stable economic environment in our markets combined
with strong credit quality. We remain committed to providing superior customer
service, improving our operating efficiency while maintaining solid credit
quality and growing our franchise - both internally and through selective de
novo offices and mergers."
Other Items
Under United Community Banks' stock purchase program, a total of 1.5 million
shares may be purchased through December 31, 2004. No shares were purchased
during the fourth quarter. As of December 31, 2003, a total of 874,000 shares
had been purchased over the past three years with an average cost per share of
$22.17.
On January 19, 2004, the Board of Directors declared a regular first-quarter
2004 cash dividend of $.09 per common share, payable April 1, 2004, to
shareholders of record as of the close of business on March 15, 2004. "This
represents an annual cash dividend of $.36 per share and a $.06 per share,
increase or 20% over the dividends paid for 2003," Tallent said. "This increase
reflects our continued strong performance and commitment to deliver value to our
shareholders.
"United Community Banks' growth strategy is focused primarily on internal growth
within our markets. Additionally, if we have the right people, we will expand
through de novo offices and
make selective acquisitions of bank and branch offices," Tallent said. As part
of this growth strategy, United Community Banks completed the mergers of First
Central Bank, headquartered in Lenoir City, Tennessee and First Georgia Bank,
headquartered in Brunswick, Georgia during the first half of 2003. Combined, the
mergers added 14 banking offices with approximately $310 million in loans, $410
million in deposits and $53 million in intangible assets. Further, during the
fourth quarter, United Community Banks completed the purchase of three branches
located in Avery, Mitchell, and Graham counties in western North Carolina from
another financial institution. In aggregate, the branches had deposits of $70
million, loans of $10 million and intangible assets of $7 million.
"As part of our de novo strategy, we found a team of four bankers with over
fifty combined years of experience, primarily in Savannah, Georgia and opened a
de novo bank in that market during the fourth quarter of 2003," Tallent said.
"This new bank supports our strategy of finding the right bankers making it
possible to expand our franchise in the attractive and affluent coastal Georgia
market. This further complements our merger earlier this year with First Georgia
Bank in Brunswick," Tallent commented. "Additionally, we recently opened two de
novo bank offices in Mitchell and Yancey counties in western North Carolina.
These new opportunities were the direct result of our recent acquisition of
three branches earlier in the quarter in adjacent markets. In both markets we
were able to hire staff with significant in - market experience. We now have 18
banking offices in western North Carolina and 72 banking offices throughout our
franchise," Tallent added.
"Looking ahead, we see excellent opportunities to expand and fill-in our markets
through de novo offices. We first find the experienced bankers who know the
market and share our community banking philosophy of providing the highest level
of personal service available. Then, we build the bricks and mortar," Tallent
said. "We will continue to grow and expand our markets to serve our customers
and our shareholders, using an opportunistic strategy centered on both de novo
offices and selective mergers."
Conference Call
United Community Banks will hold a conference call to discuss the contents of
this news release, as well as business highlights and financial outlook for
2004, on Tuesday, January 27, 2004 at 11:00 a.m. ET. The telephone number for
the conference call is (888) 266-1047. The conference call will also be
available by web-cast within the Investor Relations section of the company's web
site.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks is the third-largest bank
holding company in Georgia. United Community Banks has assets of $4.1 billion
and operates 20 community banks with 72 banking offices located throughout north
Georgia, metro Atlanta, coastal Georgia, western North Carolina and east
Tennessee. The company specializes in providing personalized community banking
services to individuals and small to mid-size businesses in its markets. United
Community Banks also offers the convenience of 24-hour access to its services
through a network of ATMs, telephone and on-line banking. United Community Banks
common stock is listed on the Nasdaq National Market under the symbol UCBI.
Additional information may be found at the company's web site, ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by Federal
Securities Laws, including statements about financial outlook and business
environment. These statements are provided to assist in the understanding of
future financial performance and such performance involves risks and
uncertainties that may cause actual results to differ materially from those in
such statements. Any such statements are based on current expectations and
involve a number of risks and uncertainties. For a discussion of factors that
may cause such forward-looking statements to differ materially from actual
results, please refer to the section entitled "Forward Looking Statements" on
page 4 of United Community Banks, Inc. annual report filed on Form 10-K with the
Securities and Exchange Commission.
(Tables Follow)
UNITED COMMUNITY BANKS, INC.
SELECTED FINANCIAL INFORMATION
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------------
2003 2002 FOURTH
--------------------------------------------- --------- QUARTER FOR THE TWELVE YTD
(in thousands, except per share FOURTH THIRD SECOND FIRST FOURTH 2003-2002 MONTHS ENDED 2003-2002
data; taxable equivalent) QUARTER QUARTER QUARTER QUARTER QUARTER CHANGE 2003 2002 CHANGE
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest revenue $ 53,943 $ 53,731 $ 53,261 $ 48,403 $ 48,579 $ 209,338 $ 195,932
Interest expense 17,098 17,446 18,467 17,589 18,964 70,600 76,357
---------- ---------- --------- --------- --------- --------- ---------
Net interest revenue 36,845 36,285 34,794 30,814 29,615 24% 138,738 119,575 16%
Provision for loan losses 1,800 1,500 1,500 1,500 1,800 6,300 6,900
Total fee revenue 9,090 10,401 10,316 8,377 8,784 3 38,184 30,734 24
---------- ---------- --------- --------- --------- --------- ---------
TOTAL REVENUE 44,135 45,186 43,610 37,691 36,599 21 170,622 143,409 19
Operating expenses (1) 27,572 28,712 27,699 23,917 23,005 20 107,900 91,124 18
---------- ---------- --------- --------- --------- --------- ---------
Income before taxes 16,563 16,474 15,911 13,774 13,594 22 62,722 52,285 20
Income taxes 5,959 6,110 6,014 5,164 5,034 23,247 19,505
---------- ---------- --------- --------- --------- --------- ---------
NET OPERATING INCOME 10,604 10,364 9,897 8,610 8,560 24 39,475 32,780 20
Merger-related charges,
net of tax 383 -- 428 546 -- 1,357 --
---------- ---------- --------- --------- --------- --------- ---------
NET INCOME $ 10,221 $ 10,364 $ 9,469 $ 8,064 $ 8,560 19 $ 38,118 $ 32,780 16
========== ========== ========= ========= ========= ========= =========
OPERATING PERFORMANCE (1)
Earnings per common share:
Basic $ .45 $ .44 $ .43 $ .40 $ .40 13 $ 1.73 $ 1.53 13
Diluted .44 .43 .42 .39 .39 13 1.68 1.48 14
Return on equity (2) 14.73% 14.90% 15.43% 16.55% 16.42% 15.32% 16.54%
Return on tangible
equity (3) 19.72 19.94 19.54 17.79 17.68 19.24 17.88
Return on assets 1.06 1.06 1.06 1.07 1.08 1.06 1.11
Efficiency ratio 59.81 61.34 61.40 61.03 59.94 60.89 60.66
Dividend payout ratio 16.67 17.05 17.44 18.75 15.63 17.34 16.34
GAAP PERFORMANCE
PER COMMON SHARE
Basic earnings $ .43 $.44 $ .41 $ .38 $ .40 8 $ 1.67 $ 1.53 9
Diluted earnings .42 .43 .40 .37 .39 8 1.62 1.48 9
Cash dividends declared .075 .075 .075 .075 .0625 20 .30 .25 20
Book value 12.70 12.31 12.22 11.09 10.34 23 12.70 10.34 23
Tangible book value (3) 9.77 9.66 9.55 9.59 9.74 9.77 9.74
KEY PERFORMANCE RATIOS
Return on equity (2) 14.19% 14.90% 14.76% 15.50% 16.42% 14.79% 16.54%
Return on assets 1.02 1.06 1.01 1.00 1.08 1.02 1.11
Efficency ratio 61.07 61.34 62.88 63.17 59.94 62.07 60.66
Net interest margin 3.96 3.97 3.99 4.05 4.03 3.99 4.33
Dividend payout ratio 17.44 17.05 18.29 19.74 15.63 17.96 16.34
Equity to assets 7.41 7.35 7.19 6.84 6.92 7.21 7.01
Equity to assets
(tangible) (3) 5.82 5.85 6.03 6.47 6.53 6.02 6.60
ASSET QUALITY
Allowance for loan losses $ 38,655 $ 37,773 $ 37,353 $ 33,022 $ 30,914 $ 38,655 $ 30,914
Non-performing assets 7,589 7,998 8,232 7,745 8,019 7,589 8,019
Net charge-offs 918 1,080 1,069 1,030 1,186 4,097 3,111
Allowance for loan
losses to loans 1.28% 1.29% 1.31% 1.30% 1.30% 1.28% 1.30%
Non-performing assets
to total assets .19 .20 .21 .22 .25 .19 .25
Net charge-offs to
average loans .12 .15 .16 .17 .20 .15 .14
AVERAGE BALANCES
Loans $2,959,626 $2,881,375 $2,742,952 $2,422,542 $2,358,021 26 $2,753,451 $2,239,875 23
Earning assets (4) 3,695,197 3,629,819 3,497,851 3,072,719 2,919,613 27 3,476,030 2,761,265 26
Total assets 3,961,384 3,888,141 3,756,689 3,269,481 3,138,747 26 3,721,284 2,959,295 26
Deposits 2,843,600 2,826,900 2,829,986 2,466,801 2,408,773 18 2,743,087 2,311,717 19
Stockholders' equity 293,464 285,790 269,972 223,599 217,051 35 268,446 207,312 29
Common shares
outstanding:
Basic 23,506 23,408 22,853 21,218 21,293 22,754 21,375
Diluted 24,260 24,123 23,592 21,957 22,078 23,501 22,161
AT PERIOD END
Loans $3,015,997 $2,918,412 $2,861,481 $2,546,001 $2,381,798 27 $3,015,997 $2,381,798 27
Earning assets 3,796,332 3,676,018 3,642,545 3,304,232 3,029,409 25 3,796,332 3,029,409 25
Total assets 4,068,834 3,942,139 3,905,929 3,579,004 3,211,344 27 4,068,834 3,211,344 27
Deposits 2,857,449 2,790,331 2,870,926 2,723,574 2,385,239 20 2,857,449 2,385,239 20
Stockholders' equity 299,373 289,713 285,500 245,699 221,579 35 299,373 221,579 35
Common shares
outstanding 23,526 23,488 23,311 22,037 21,263 11 23,526 21,263 11
(1) Excludes pre-tax merger-related charges totaling $580,000 or $.02 per
diluted common share, $668,000 or $.02 per diluted common share and
$840,000 or $.02 per diluted common share recorded in the fourth,
second and first quarters, respectively, of 2003.
(2) Net income available to common stockholders divided by average realized
common equity which excludes accumulated other comprehensive income.
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Excludes unrealized gains and losses on securities available for sale.
UNITED COMMUNITY BANKS, INC.
SELECTED FINANCIAL INFORMATION
FOR THE YEARS ENDED DECEMBER 31,
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(IN THOUSANDS, EXCEPT PER SHARE 5 YEAR
DATA; TAXABLE EQUIVALENT) 2003 2002 2001 2000 1999 1998 CAGR
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY
Interest revenue $ 209,338 $ 195,932 $ 210,036 $ 213,115 $ 171,211 $ 135,706
Interest expense 70,600 76,357 100,874 116,591 90,242 67,664
---------- ---------- ---------- ---------- ---------- ----------
Net interest revenue 138,738 119,575 109,162 96,524 80,969 68,042 15%
Provision for loan losses 6,300 6,900 6,000 7,264 5,966 3,014
Total fee revenue 38,184 30,734 25,267 18,867 15,693 12,979 24
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUE 170,622 143,409 128,429 108,127 90,696 78,007 17
Operating expenses (1) 107,900 91,124 83,906 74,043 63,505 53,104 15
---------- ---------- ---------- ---------- ---------- ----------
Income before taxes 62,722 52,285 44,523 34,084 27,191 24,903 20
Income taxes 23,247 19,505 16,208 12,337 9,938 9,253
---------- ---------- ---------- ---------- ---------- ----------
NET OPERATING INCOME 39,475 32,780 28,315 21,747 17,253 15,650 20
Merger-related charges,
net of tax 1,357 -- 1,084 7,230 1,155 --
---------- ---------- ---------- ---------- ---------- ----------
NET INCOME $ 38,118 $ 32,780 $ 27,231 $ 14,517 $ 16,098 $ 15,650 19
========== ========== ========== ========== ========== ==========
OPERATING PERFORMANCE (1)
Earnings per common share:
Basic $ 1.73 $ 1.53 $ 1.33 $ 1.05 $ .86 $ .78 17
Diluted 1.68 1.48 1.30 1.03 .84 .77 17
Return on equity (2) 15.32% 16.54% 16.73% 15.06% 14.42% 14.91%
Return on tangible
equity (3) 19.24 17.88 18.19 16.74 16.37 16.59
Return on assets 1.06 1.11 1.10 .89 .81 1.00
Efficiency ratio 60.89 60.66 62.52 64.15 66.07 66.20
Dividend payout ratio 17.34 16.34 15.04 14.24 11.68 9.55
GAAP PERFORMANCE
PER COMMON SHARE
Basic earnings $ 1.67 $ 1.53 $ 1.28 $ .70 $ .80 $ .78 16
Diluted earnings 1.62 1.48 1.25 .69 .78 .77 16
Cash dividends declared .30 .25 .20 .15 .10 .075 32
Book value 12.70 10.34 8.97 7.40 5.91 5.86 17
Tangible book value (3) 9.77 9.74 8.10 6.74 5.89 5.40 13
KEY PERFORMANCE RATIOS
Return on equity (2) 14.79% 16.54% 16.08% 10.04% 13.46% 14.91%
Return on assets 1.02 1.11 1.05 .59 .75 1.00
Efficiency ratio 62.07 60.66 63.72 69.15 67.99 66.20
Net interest margin 3.99 4.33 4.51 4.16 4.07 4.69
Dividend payout ratio 17.96 16.34 15.63 21.28 12.50 9.55
Equity to assets 7.21 7.01 6.81 5.58 5.47 6.78
Equity to assets
(tangible) (3) 6.02 6.60 6.18 5.49 5.19 6.27
ASSET QUALITY
Allowance for loan losses $ 38,655 $ 30,914 $ 27,124 $ 24,698 $ 20,043 $ 14,402
Non-performing assets 7,589 8,019 9,670 6,716 3,652 2,274
Net charge-offs 4,097 3,111 4,578 2,976 2,147 1,016
Allowance for loan
losses to loans 1.28% 1.30% 1.35% 1.38% 1.28% 1.20%
Non-performing assets
to total assets .19 .25 .35 .27 .15 .13
Net charge-offs to
average loans .15 .14 .25 .18 .15 .09
AVERAGE BALANCES
Loans $2,753,451 $2,239,875 $1,854,968 $1,683,403 $1,391,858 $1,089,792 20
Earning assets (4) 3,476,030 2,761,265 2,419,080 2,319,389 1,987,825 1,452,740 19
Total assets 3,721,284 2,959,295 2,585,290 2,453,250 2,139,594 1,565,315 19
Deposits 2,743,087 2,311,717 2,010,105 1,941,496 1,659,534 1,328,843 16
Stockholders' equity 268,446 207,312 176,144 136,810 117,064 106,096 20
Common shares
outstanding:
Basic 22,754 21,375 21,127 20,600 20,158 19,998
Diluted 23,501 22,161 21,749 21,194 20,842 20,610
AT PERIOD END
Loans $3,015,997 $2,381,798 $2,007,990 $1,792,055 $1,564,148 $1,203,495 20
Earning assets 3,796,332 3,029,409 2,554,530 2,352,475 2,195,712 1,678,016 18
Total assets 4,068,834 3,211,344 2,749,257 2,528,879 2,384,678 1,813,004 18
Deposits 2,857,449 2,385,239 2,116,499 1,995,865 1,869,379 1,432,224 15
Stockholders' equity 299,373 221,579 194,665 158,388 119,312 115,364 21
Common shares
outstanding 23,526 21,263 21,511 21,028 20,189 19,672
(1) Excludes pre-tax merger-related and restructuring charges totaling $2.1
million, or $.06 per diluted common share, recorded in 2003; $1.6
million, or $.05 per diluted common share, recorded in 2001; $10.6
million, or $.34 per diluted common share, recorded in 2000; and $1.8
million, or $.06 per diluted common share, recorded in 1999.
(2) Net income available to common stockholders divided by average realized
common equity which excludes accumulated other comprehensive income.
(3) Excludes effect of acquisition related intangibles and associated
amortization.
(4) Excludes unrealized gains and losses on securities available for sale.
UNITED COMMUNITY BANKS, INC.
CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
- ----------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
--------------------------------- --------------------------------
(in thousands, except per share data) 2003 2002 2003 2002
- ----------------------------------------------------------------------------------------------------------------------
INTEREST REVENUE: (Unaudited) (Unaudited) (Audited) (Audited)
Interest and fees on loans $ 46,574 $ 42,025 $ 180,035 $ 168,192
Interest on federal funds sold and
deposits in banks 84 149 391 576
Interest on investment securities:
Taxable 6,141 5,050 23,944 21,578
Tax-exempt 655 772 2,819 3,207
--------- --------- --------- ---------
Total interest revenue 53,454 47,996 207,189 193,553
--------- --------- --------- ---------
INTEREST EXPENSE:
Interest on deposits:
Demand 1,712 3,046 7,831 11,515
Savings 82 110 369 508
Time 9,079 10,851 39,752 45,206
Other borrowings 6,225 4,957 22,648 19,128
--------- --------- --------- ---------
Total interest expense 17,098 18,964 70,600 76,357
--------- --------- --------- ---------
Net interest revenue 36,356 29,032 136,589 117,196
Provision for loan losses 1,800 1,800 6,300 6,900
--------- --------- --------- ---------
Net interest revenue after provision
for loan losses 34,556 27,232 130,289 110,296
--------- --------- --------- ---------
FEE REVENUE:
Service charges and fees 5,018 3,664 18,288 13,465
Mortgage loan and related fees 1,753 2,664 10,515 7,751
Consulting fees 1,033 1,231 4,399 4,612
Brokerage fees 606 419 1,921 1,875
Securities gains, net 622 573 497 637
Loss on prepayments of borrowings (787) (552) (787) (552)
Other 845 785 3,351 2,946
--------- --------- --------- ---------
Total fee revenue 9,090 8,784 38,184 30,734
--------- --------- --------- ---------
TOTAL REVENUE 43,646 36,016 168,473 141,030
--------- --------- --------- ---------
OPERATING EXPENSES:
Salaries and employee benefits 17,379 14,949 68,044 57,735
Occupancy 2,143 2,038 8,783 8,261
Communications and equipment 2,287 1,847 8,601 6,555
Postage, printing and supplies 1,085 895 4,439 3,731
Professional fees 903 747 3,910 3,368
Advertising and public relations 629 636 3,068 2,994
Amortization of intangibles 359 85 1,065 340
Merger-related charges 580 -- 2,088 --
Other 2,787 1,808 9,990 8,140
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Total operating expenses 28,152 23,005 109,988 91,124
--------- --------- --------- ---------
Income before income taxes 15,494 13,011 58,485 49,906
Income taxes 5,273 4,451 20,367 17,126
--------- --------- --------- ---------
NET INCOME $ 10,221 $ 8,560 $ 38,118 $ 32,780
========= ========= ========= =========
Net income available to common
stockholders $ 10,212 $ 8,534 $ 38,052 $ 32,676
========= ========= ========= =========
Earnings per common share:
Basic $ .43 $ .40 $ 1.67 $ 1.53
Diluted .42 .39 1.62 1.48
Average common shares outstanding:
Basic 23,506 21,293 22,754 21,375
Diluted 24,260 22,078 23,501 22,161
UNITED COMMUNITY BANKS, INC.
CONSOLIDATED BALANCE SHEET
FOR THE PERIOD ENDED
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DECEMBER 31, DECEMBER 31,
($ in thousands) 2003 2002
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ASSETS (Audited) (Audited)
Cash and due from banks $ 91,819 $ 75,027
Interest-bearing deposits in banks 68,374 31,318
Federal funds sold -- --
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Cash and cash equivalents 160,193 106,345
Securities available for sale 659,891 559,390
Mortgage loans held for sale 10,756 24,080
Loans, net of unearned income 3,015,997 2,381,798
Less - allowance for loan losses 38,655 30,914
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Loans, net 2,977,342 2,350,884
Premises and equipment, net 87,439 70,748
Accrued interest receivable 20,962 20,275
Intangible assets 72,213 12,767
Other assets 80,038 66,855
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TOTAL ASSETS $ 4,068,834 $ 3,211,344
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 412,309 $ 297,613
Interest-bearing demand 846,022 734,494
Savings 140,619 100,523
Time 1,458,499 1,252,609
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Total deposits 2,857,449 2,385,239
Accrued expenses and other liabilities 21,147 17,222
Federal funds purchased and repurchase agreements 102,849 20,263
Federal Home Loan Bank advances 635,420 492,130
Long-term debt and other borrowings 152,596 74,911
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TOTAL LIABILITIES 3,769,461 2,989,765
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Stockholders' equity:
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares
authorized; 55,900 and 172,600 shares issued and outstanding 559 1,726
Common stock, $1 par value; 50,000,000 shares authorized;
23,804,382 and 21,805,924 shares issued 23,804 21,806
Capital surplus 107,854 62,495
Retained earnings 166,887 135,709
Treasury stock; 278,350 and 542,652 shares, at cost (7,120) (11,432)
Accumulated other comprehensive income 7,389 11,275
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TOTAL STOCKHOLDERS' EQUITY 299,373 221,579
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,068,834 $ 3,211,344
=========== ===========