BLAIRSVILLE, GA
-- (Marketwire)
-- 04/26/12
United Community Banks, Inc. (NASDAQ: UCBI)
- Net income of $11.5 million, or 15 cents per share
- Pre-tax, pre-credit earnings, excluding one-time items, highest since fourth quarter 2009
- Loan growth continues, up $18 million from fourth quarter, or 2 percent annualized
- Core transaction deposits up $151 million from fourth quarter, or 21 percent annualized
- Capital ratios strengthen
United Community Banks, Inc. (NASDAQ: UCBI) today reported net income of $11.5 million, or 15 cents per share, for the first quarter of 2012. The positive results reflect strong core transaction deposit growth, modest loan growth, a fee revenue increase and lower operating expenses compared with the fourth quarter of 2011.
"Momentum continues to build in restoring and improving our financial performance," said Jimmy Tallent, president and chief executive officer. "With credit problems now at a manageable level, we have increased our focus on improving core pre-tax, pre-credit earnings through revenue growth and higher efficiency. The results are encouraging: Core pre-tax, pre-credit earnings, excluding one-time items, were at their highest level since the fourth quarter of 2009."
Total loans were $4.13 billion at quarter-end, up $18 million from the fourth quarter and down $66 million from a year earlier. "In the fourth quarter we reversed the trend of declining loan balances, and in the first quarter we achieved modest loan growth," stated Tallent. "We are prudently growing our portfolio by focusing on full-service relationships with small-to-medium sized businesses. During the first quarter we added $169 million in new loan commitments of which $131 million were funded by quarter-end. The majority were commercial loans."
The first quarter provision for loan losses was $15 million, down from $190 million a year ago and up slightly from $14 million in the fourth quarter of 2011. The first quarter 2011 provision was elevated due to execution of United's problem asset disposition plan following the successful raising of $380 million in capital.
First quarter net charge-offs were $15.9 million, compared to $232 million in the first quarter of 2011 and $45.6 million in the fourth quarter. A bulk loan sale, part of the problem asset disposition plan, elevated net charge-offs in the 2011 first quarter. Fourth quarter 2011 net charge-offs included $25 million related to United's largest loan relationship.
Nonperforming assets of $161.6 million reflected a $1.3 million increase from the fourth quarter of 2011, and a $23.4 million increase from the first quarter of 2011. Said Tallent, "Nonperforming asset levels are impacted significantly by the inflow of new nonperforming loans and our ability to liquidate foreclosed properties. While the inflow of new nonperforming loans fell from $46 million in the fourth quarter to $32 million in the first quarter, nonperforming assets did not decline due to slow foreclosed property sales, which is typical in the winter months. We expect our overall credit trends to improve during 2012, although not necessarily on a straight line."
Taxable equivalent net interest revenue of $58.9 million reflected a slight decline from the fourth quarter of 2011, and an increase of $2.5 million from the first quarter of 2011 due to the $2 million reversal of accrued interest last year on performing loans included in the bulk loan sale. The net interest margin was 3.53 percent for the first quarter of 2012, up 23 basis points from a year ago and two basis points from the fourth quarter of 2011.
"Growing quality loan and deposit relationships is a key focus in 2012," Tallent commented. "The weak economy has created a highly competitive environment for good, quality loans; yet, our momentum continues to build as the seasoned relationship managers we have added in key markets attract new business. Our success attracting core transaction deposits also has continued, with balances increasing $151 million during the first quarter. That is 21 percent growth on an annualized basis."
Fee revenue was $15.4 million in the first quarter of 2012, compared to $12.7 million in the fourth quarter and $11.8 million a year ago. Service charges and fees were $7.8 million, up $535,000 from the fourth quarter and $1.1 million from a year ago. The increase in service charges and fees from both periods reflects new charges on deposit accounts that became effective in the first quarter of 2012, and higher debit card revenue. Combined, these revenue increases more than offset lower overdraft fees.
Mortgage fee revenue increased $274,000 from the fourth quarter, and $605,000 from a year ago, to $2.1 million. The comparisons to prior periods are influenced significantly by the interest rate environment and refinancing activities. Mortgage loans closed totaled $81.7 million in the first quarter of 2012 compared with $78.8 million and $74.5 million, respectively, in the fourth and first quarters of 2011. Other fee revenue of $4.6 million reflected a $1.8 million increase from the fourth quarter, and a $1.7 million increase from the first quarter of 2011. The increase from both prior periods was primarily due to the recognition of $1.1 million in interest received for 2008's federal tax refund.
Excluding foreclosed property costs, first quarter 2012 operating expenses were $43.1 million compared to $41.8 million for the fourth quarter of 2011. Operating expenses increased $1.3 million on a linked-quarter basis due to a reclassification of expenses reflected in the fourth quarter of 2011 that transferred $2.2 million of salary and employee benefit costs to other comprehensive income for unamortized prior service costs and actuarial losses related to United's modified retirement plan. Excluding this one-time adjustment, the first quarter's total operating expenses were down $900,000 from the fourth quarter, primarily due to lower staff costs. First quarter operating expenses decreased by $7.2 million in the first quarter compared to the same period a year ago, primarily due to $2.9 million in higher FDIC premium assessments in the first quarter of 2011, and costs incurred during that period related to the problem asset disposition plan: $1.0 million in professional fees and $2.6 million in property taxes paid on assets sold.
Foreclosed property costs for the first quarter of 2012 were $3.8 million, compared to $9.3 million in the fourth quarter of 2011 and $64.9 million in the first quarter a year ago. First quarter 2012 costs included $1.6 million for maintenance and $2.2 million in net losses and write-downs. For the fourth quarter of 2011, foreclosed property costs included $2.4 million in maintenance and $6.9 million in net losses and write-downs. First quarter 2011 costs included $4.3 million in maintenance and $60.6 million in net write-downs and losses, mostly related to the problem asset disposition plan.
As of March 31, 2012, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Tier 1 Leverage of 8.9 percent; and Total Risk-Based of 15.4 percent. The Tier 1 Common Risk-Based ratio was 8.3 and the Tangible Equity-to-Assets ratio was 8.1 percent.
"We are on the path to recovery as indicated by three profitable quarters out of the past four," stated Tallent. "The economy is still weak and work remains to resolve credit problems, though we believe far more of that work is behind us. Looking forward, we expect continued profitability and improved financial performance from revenue enhancements and expense reductions."
Conference Call
United will hold a conference call today, Thursday, April 26, 2012, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 69716155. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of the United's website at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.2 billion and operates 27 community banks with 106 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United's common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United's web site at www.ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2011 Annual Report on Form 10-K under the section entitled "Forward-Looking Statements" and "Risk Factors." Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2012 2011
--------- ------------------------------------------
(in thousands, except
per share First Fourth Third Second First
data; taxable
equivalent) Quarter Quarter Quarter Quarter Quarter
--------- --------- --------- --------- ---------
INCOME SUMMARY
Interest revenue $ 70,221 $ 71,905 $ 74,543 $ 76,931 $ 75,965
Interest expense 11,357 12,855 15,262 17,985 19,573
--------- --------- --------- --------- ---------
Net interest
revenue 58,864 59,050 59,281 58,946 56,392
Provision for loan
losses 15,000 14,000 36,000 11,000 190,000
Fee revenue 15,379 12,667 11,498 13,905 11,838
--------- --------- --------- --------- ---------
Total revenue 59,243 57,717 34,779 61,851 (121,770)
Operating expenses 46,955 51,080 46,520 48,728 115,271
--------- --------- --------- --------- ---------
Income (loss)
before income
taxes 12,288 6,637 (11,741) 13,123 (237,041)
Income tax expense
(benefit) 760 (3,264) (402) 1,095 295
--------- --------- --------- --------- ---------
Net income (loss) 11,528 9,901 (11,339) 12,028 (237,336)
Preferred dividends
and discount
accretion 3,030 3,025 3,019 3,016 2,778
--------- --------- --------- --------- ---------
Net income (loss)
available to common
shareholders $ 8,498 $ 6,876 $ (14,358) $ 9,012 $(240,114)
========= ========= ========= ========= =========
PERFORMANCE MEASURES
Per common share:
Diluted income
(loss) $ .15 $ .12 $ (.25) $ .16 $ (13.00)
Book value 6.68 6.62 6.77 7.11 2.20
Tangible book
value (2) 6.54 6.47 6.61 6.94 1.69
Key performance
ratios:
Return on equity
(1)(3) 8.78% 7.40% (15.06)% 42.60% (526.54)%
Return on assets
(3) .66 .56 (.64) .66 (13.04)
Net interest
margin (3) 3.53 3.51 3.55 3.41 3.30
Efficiency ratio 63.31 71.23 65.73 66.88 169.08
Equity to assets 8.19 8.28 8.55 8.06 6.15
Tangible equity
to assets (2) 8.08 8.16 8.42 7.93 6.01
Tangible common
equity to assets
(2) 5.33 5.38 5.65 1.37 2.70
Tangible common
equity to risk-
weighted assets
(2) 8.21 8.25 8.52 8.69 .75
ASSET QUALITY *
Non-performing
loans $ 129,704 $ 127,479 $ 144,484 $ 71,065 $ 83,769
Foreclosed
properties 31,887 32,859 44,263 47,584 54,378
--------- --------- --------- --------- ---------
Total non-
performing
assets (NPAs) 161,591 160,338 188,747 118,649 138,147
Allowance for loan
losses 113,601 114,468 146,092 127,638 133,121
Net charge-offs 15,867 45,624 17,546 16,483 231,574
Allowance for loan
losses to loans 2.75% 2.79% 3.55% 3.07% 3.17%
Net charge-offs to
average loans (3) 1.55 4.39 1.68 1.58 20.71
NPAs to loans and
foreclosed
properties 3.88 3.87 4.54 2.82 3.25
NPAs to total
assets 2.25 2.30 2.74 1.66 1.79
AVERAGE BALANCES($ in
millions)
Loans $ 4,168 $ 4,175 $ 4,194 $ 4,266 $ 4,599
Investment
securities 2,153 2,141 2,150 2,074 1,625
Earning assets 6,700 6,688 6,630 6,924 6,902
Total assets 7,045 7,019 7,000 7,363 7,379
Deposits 6,028 6,115 6,061 6,372 6,560
Shareholders'
equity 577 581 598 594 454
Common shares -
basic (thousands) 57,764 57,646 57,599 25,427 18,466
Common shares -
diluted
(thousands) 57,764 57,646 57,599 57,543 18,466
AT PERIOD END($ in
millions)
Loans * $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194
Investment
securities 2,202 2,120 2,123 2,188 1,884
Total assets 7,174 6,983 6,894 7,152 7,709
Deposits 6,001 6,098 6,005 6,183 6,598
Shareholders'
equity 580 575 583 603 586
Common shares
outstanding
(thousands) 57,603 57,561 57,510 57,469 20,903
(1) Net loss available to common shareholders, which is net of preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss). (2) Excludes effect of
acquisition related intangibles and associated amortization. (3)
Annualized.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
First
2012 2011 Quarter
----------- -----------
(in thousands, except per share First First 2012-2011
data; taxable equivalent) Quarter Quarter Change
----------- ----------- ----------
INCOME SUMMARY
Interest revenue $ 70,221 $ 75,965
Interest expense 11,357 19,573
----------- -----------
Net interest revenue 58,864 56,392 4%
Provision for loan losses 15,000 190,000
Fee revenue 15,379 11,838 30
----------- -----------
Total revenue 59,243 (121,770)
Operating expenses 46,955 115,271 (59)
----------- -----------
Income (loss) before income taxes 12,288 (237,041)
Income tax expense (benefit) 760 295
----------- -----------
Net income (loss) 11,528 (237,336)
Preferred dividends and discount
accretion 3,030 2,778
----------- -----------
Net income (loss) available to common
shareholders $ 8,498 $ (240,114)
=========== ===========
PERFORMANCE MEASURES
Per common share:
Diluted income (loss) $ .15 $ (13.00)
Book value 6.68 2.20 204
Tangible book value (2) 6.54 1.69 287
Key performance ratios:
Return on equity (1)(3) 8.78% (526.54)%
Return on assets (3) .66 (13.04)
Net interest margin (3) 3.53 3.30
Efficiency ratio 63.31 169.08
Equity to assets 8.19 6.15
Tangible equity to assets (2) 8.08 6.01
Tangible common equity to assets
(2) 5.33 2.70
Tangible common equity to risk-
weighted assets (2) 8.21 .75
ASSET QUALITY *
Non-performing loans $ 129,704 $ 83,769
Foreclosed properties 31,887 54,378
----------- -----------
Total non-performing assets (NPAs) 161,591 138,147
Allowance for loan losses 113,601 133,121
Net charge-offs 15,867 231,574
Allowance for loan losses to loans 2.75% 3.17%
Net charge-offs to average loans (3) 1.55 20.71
NPAs to loans and foreclosed
properties 3.88 3.25
NPAs to total assets 2.25 1.79
AVERAGE BALANCES($ in millions)
Loans $ 4,168 $ 4,599 (9)
Investment securities 2,153 1,625 32
Earning assets 6,700 6,902 (3)
Total assets 7,045 7,379 (5)
Deposits 6,028 6,560 (8)
Shareholders' equity 577 454 27
Common shares - basic (thousands) 57,764 18,466
Common shares - diluted (thousands) 57,764 18,466
AT PERIOD END($ in millions)
Loans * $ 4,128 $ 4,194 (2)
Investment securities 2,202 1,884 17
Total assets 7,174 7,709 (7)
Deposits 6,001 6,598 (9)
Shareholders' equity 580 586 (1)
Common shares outstanding
(thousands) 57,603 20,903
(1) Net loss available to common shareholders, which is net of preferred
stock dividends, divided by average realized common equity, which excludes
accumulated other comprehensive income (loss). (2) Excludes effect of
acquisition related intangibles and associated amortization. (3)
Annualized.
* Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2012 2011
--------- ------------------------------------------
(in thousands, except
per share First Fourth Third Second First
data; taxable
equivalent) Quarter Quarter Quarter Quarter Quarter
--------- --------- --------- --------- ---------
Interest revenue
reconciliation
Interest revenue -
taxable equivalent $ 70,221 $ 71,905 $ 74,543 $ 76,931 $ 75,965
Taxable equivalent
adjustment (446) (423) (420) (429) (435)
--------- --------- --------- --------- ---------
Interest revenue
(GAAP) $ 69,775 $ 71,482 $ 74,123 $ 76,502 $ 75,530
========= ========= ========= ========= =========
Net interest revenue
reconciliation
Net interest revenue
- taxable equivalent $ 58,864 $ 59,050 $ 59,281 $ 58,946 $ 56,392
Taxable equivalent
adjustment (446) (423) (420) (429) (435)
--------- --------- --------- --------- ---------
Net interest
revenue (GAAP) $ 58,418 $ 58,627 $ 58,861 $ 58,517 $ 55,957
========= ========= ========= ========= =========
Total revenue
reconciliation
Total operating
revenue $ 59,243 $ 57,717 $ 34,779 $ 61,851 $(121,770)
Taxable equivalent
adjustment (446) (423) (420) (429) (435)
--------- --------- --------- --------- ---------
Total revenue
(GAAP) $ 58,797 $ 57,294 $ 34,359 $ 61,422 $(122,205)
========= ========= ========= ========= =========
Income (loss) before
taxes reconciliation
Income (loss) before
taxes $ 12,288 $ 6,637 $ (11,741) $ 13,123 $(237,041)
Taxable equivalent
adjustment (446) (423) (420) (429) (435)
--------- --------- --------- --------- ---------
Income (loss)
before taxes
(GAAP) $ 11,842 $ 6,214 $ (12,161) $ 12,694 $(237,476)
========= ========= ========= ========= =========
Income tax (benefit)
expense
reconciliation
Income tax (benefit)
expense $ 760 $ (3,264) $ (402) $ 1,095 $ 295
Taxable equivalent
adjustment (446) (423) (420) (429) (435)
--------- --------- --------- --------- ---------
Income tax
(benefit) expense
(GAAP) $ 314 $ (3,687) $ (822) $ 666 $ (140)
========= ========= ========= ========= =========
Book value per common
share reconciliation
Tangible book value
per common share $ 6.54 $ 6.47 $ 6.61 $ 6.94 $ 1.69
Effect of goodwill
and other
intangibles .14 .15 .16 .17 .51
--------- --------- --------- --------- ---------
Book value per
common share
(GAAP) $ 6.68 $ 6.62 $ 6.77 $ 7.11 $ 2.20
========= ========= ========= ========= =========
Average equity to
assets
reconciliation
Tangible common
equity to assets 5.33% 5.38% 5.65% 1.37% 2.70%
Effect of preferred
equity 2.75 2.78 2.77 6.56 3.31
--------- --------- --------- --------- ---------
Tangible equity to
assets 8.08 8.16 8.42 7.93 6.01
Effect of goodwill
and other
intangibles .11 .12 .13 .13 .14
--------- --------- --------- --------- ---------
Equity to assets
(GAAP) 8.19% 8.28% 8.55% 8.06% 6.15%
========= ========= ========= ========= =========
Tangible common
equity to risk-
weighted assets
reconciliation
Tangible common
equity to risk-
weighted assets 8.21% 8.25% 8.52% 8.69% .75%
Effect of other
comprehensive income .10 (.03) (.29) (.42) (.32)
Effect of trust
preferred 1.15 1.18 1.19 1.15 1.13
Effect of preferred
equity 4.23 4.29 4.33 4.20 5.87
--------- --------- --------- --------- ---------
Tier I capital
ratio (Regulatory) 13.69% 13.69% 13.75% 13.62% 7.43%
========= ========= ========= ========= =========
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2012 2011
-------- -----------------------------------
First Fourth Third Second First
(in millions) Quarter Quarter Quarter Quarter Quarter
-------- -------- -------- -------- --------
LOANS BY CATEGORY
Commercial (sec.by RE) $ 1,843 $ 1,822 $ 1,771 $ 1,742 $ 1,692
Commercial & industrial 440 428 429 428 431
Commercial construction 167 164 169 195 213
-------- -------- -------- -------- --------
Total commercial 2,450 2,414 2,369 2,365 2,336
Residential mortgage 1,131 1,135 1,150 1,177 1,187
Residential construction 436 448 474 502 550
Consumer installment 111 113 117 119 121
-------- -------- -------- -------- --------
Total loans $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194
======== ======== ======== ======== ========
LOANS BY MARKET
North Georgia $ 1,408 $ 1,426 $ 1,478 $ 1,500 $ 1,531
Atlanta MSA 1,239 1,220 1,192 1,188 1,179
North Carolina 588 597 607 626 640
Coastal Georgia 366 346 316 325 312
Gainesville MSA 262 265 272 275 282
East Tennessee 265 256 245 249 250
-------- -------- -------- -------- --------
Total loans $ 4,128 $ 4,110 $ 4,110 $ 4,163 $ 4,194
======== ======== ======== ======== ========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 86 $ 88 $ 97 $ 105 $ 116
Land loans 57 61 60 62 69
Lot loans 203 207 216 218 228
-------- -------- -------- -------- --------
Total 346 356 373 385 413
-------- -------- -------- -------- --------
House loans
Spec 57 59 64 74 88
Sold 32 33 37 43 49
-------- -------- -------- -------- --------
Total 89 92 101 117 137
-------- -------- -------- -------- --------
Total residential construction $ 435 $ 448 $ 474 $ 502 $ 550
======== ======== ======== ======== ========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development $ 17 $ 17 $ 19 $ 20 $ 22
Land loans 13 14 15 16 19
Lot loans 22 22 22 22 24
-------- -------- -------- -------- --------
Total 52 53 56 58 65
-------- -------- -------- -------- --------
House loans
Spec 27 27 28 30 34
Sold 7 6 8 9 11
-------- -------- -------- -------- --------
Total 34 33 36 39 45
-------- -------- -------- -------- --------
Total residential construction $ 86 $ 86 $ 92 $ 97 $ 110
======== ======== ======== ======== ========
(1) Excludes total loans of $47.2 million, $54.5 million, $57.8 million,
$70.8 million and $63.3 million as of March 31, 2012, December 31, 2011,
September 30, 2011, June 30, 2011 and March 31, 2011, respectively, that
are covered by the loss-sharing agreement with the FDIC, related to the
acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2012 2011
-------- -----------------
Year
Linked over
First Fourth First Quarter Year
(in millions) Quarter Quarter Quarter Change Change
-------- -------- -------- -------- --------
LOANS BY CATEGORY
Commercial (sec.by RE) $ 1,843 $ 1,822 $ 1,692 $ 21 $ 151
Commercial & industrial 440 428 431 12 9
Commercial construction 167 164 213 3 (46)
-------- -------- --------
Total commercial 2,450 2,414 2,336 36 114
Residential mortgage 1,131 1,135 1,187 (4) (56)
Residential construction 436 448 550 (12) (114)
Consumer installment 111 113 121 (2) (10)
-------- -------- --------
Total loans $ 4,128 $ 4,110 $ 4,194 18 (66)
======== ======== ========
LOANS BY MARKET
North Georgia $ 1,408 $ 1,426 $ 1,531 (18) (123)
Atlanta MSA 1,239 1,220 1,179 19 60
North Carolina 588 597 640 (9) (52)
Coastal Georgia 366 346 312 20 54
Gainesville MSA 262 265 282 (3) (20)
East Tennessee 265 256 250 9 15
-------- -------- --------
Total loans $ 4,128 $ 4,110 $ 4,194 18 (66)
======== ======== ========
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development $ 86 $ 88 $ 116 (2) (30)
Land loans 57 61 69 (4) (12)
Lot loans 203 207 228 (4) (25)
-------- -------- --------
Total 346 356 413 (10) (67)
-------- -------- --------
House loans
Spec 57 59 88 (2) (31)
Sold 32 33 49 (1) (17)
-------- -------- --------
Total 89 92 137 (3) (48)
-------- -------- --------
Total residential
construction $ 435 $ 448 $ 550 (13) (115)
======== ======== ========
RESIDENTIAL CONSTRUCTION - ATLANTA MSA
Dirt loans
Acquisition & development $ 17 $ 17 $ 22 - (5)
Land loans 13 14 19 (1) (6)
Lot loans 22 22 24 - (2)
-------- -------- --------
Total 52 53 65 (1) (13)
-------- -------- --------
House loans
Spec 27 27 34 - (7)
Sold 7 6 11 1 (4)
-------- -------- --------
Total 34 33 45 1 (11)
-------- -------- --------
Total residential
construction $ 86 $ 86 $ 110 - (24)
======== ======== ========
(1) Excludes total loans of $47.2 million, $54.5 million, $57.8 million,
$70.8 million and $63.3 million as of March 31, 2012, December 31, 2011,
September 30, 2011, June 30, 2011 and March 31, 2011, respectively, that
are covered by the loss-sharing agreement with the FDIC, related to the
acquisition of Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
First Quarter 2012
-------------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec.by RE) $ 26,081 $ 10,808 $ 36,889
Commercial & industrial 36,314 - 36,314
Commercial construction 23,319 3,266 26,585
----------- ----------- -----------
Total commercial 85,714 14,074 99,788
Residential mortgage 18,741 5,882 24,623
Residential construction 24,341 11,931 36,272
Consumer installment 908 - 908
----------- ----------- -----------
Total NPAs $ 129,704 $ 31,887 $ 161,591
=========== =========== ===========
Balance as a % of Unpaid Principal 70.6% 36.1% 59.4%
NPAs BY MARKET
North Georgia $ 81,117 $ 14,559 $ 95,676
Atlanta MSA 22,321 7,647 29,968
North Carolina 15,765 4,650 20,415
Coastal Georgia 5,622 1,268 6,890
Gainesville MSA 2,210 3,387 5,597
East Tennessee 2,669 376 3,045
----------- ----------- -----------
Total NPAs $ 129,704 $ 31,887 $ 161,591
=========== =========== ===========
NPA ACTIVITY
Beginning Balance $ 127,479 $ 32,859 $ 160,338
Loans placed on non-accrual 32,437 - 32,437
Payments received (5,945) - (5,945)
Loan charge-offs (14,733) - (14,733)
Foreclosures (9,534) 9,534 -
Capitalized costs - 329 329
Note / property sales - (8,631) (8,631)
Write downs - (2,111) (2,111)
Net gains (losses) on sales - (93) (93)
----------- ----------- -----------
Ending Balance $ 129,704 $ 31,887 $ 161,591
=========== =========== ===========
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Fourth Quarter 2011
-------------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec.by RE) $ 27,322 $ 9,745 $ 37,067
Commercial & industrial 34,613 - 34,613
Commercial construction 16,655 3,336 19,991
----------- ----------- -----------
Total commercial 78,590 13,081 91,671
Residential mortgage 22,358 6,927 29,285
Residential construction 25,523 12,851 38,374
Consumer installment 1,008 - 1,008
----------- ----------- -----------
Total NPAs $ 127,479 $ 32,859 $ 160,338
=========== =========== ===========
Balance as a % of Unpaid Principal 71.3% 35.9% 59.3%
NPAs BY MARKET
North Georgia $ 88,600 $ 15,136 $ 103,736
Atlanta MSA 14,480 6,169 20,649
North Carolina 15,100 5,365 20,465
Coastal Georgia 5,248 1,620 6,868
Gainesville MSA 2,069 3,760 5,829
East Tennessee 1,982 809 2,791
----------- ----------- -----------
Total NPAs $ 127,479 $ 32,859 $ 160,338
=========== =========== ===========
NPA ACTIVITY
Beginning Balance $ 144,484 $ 44,263 $ 188,747
Loans placed on non-accrual 45,675 - 45,675
Payments received (1,884) - (1,884)
Loan charge-offs (44,757) - (44,757)
Foreclosures (16,039) 16,039 -
Capitalized costs - 141 141
Note / property sales - (20,651) (20,651)
Write downs - (3,893) (3,893)
Net gains (losses) on sales - (3,040) (3,040)
----------- ----------- -----------
Ending Balance $ 127,479 $ 32,859 $ 160,338
=========== =========== ===========
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Third Quarter 2011
-------------------------------------
Non-
performing Foreclosed Total
(in thousands) Loans Properties NPAs
----------- ----------- -----------
NPAs BY CATEGORY
Commercial (sec.by RE) $ 21,998 $ 8,880 $ 30,878
Commercial & industrial 53,009 - 53,009
Commercial construction 11,370 5,862 17,232
----------- ----------- -----------
Total commercial 86,377 14,742 101,119
Residential mortgage 22,671 7,960 30,631
Residential construction 34,472 21,561 56,033
Consumer installment 964 - 964
----------- ----------- -----------
Total NPAs $ 144,484 $ 44,263 $ 188,747
=========== =========== ===========
Balance as a % of Unpaid Principal 77.8% 33.4% 59.3%
NPAs BY MARKET
North Georgia $ 105,078 $ 17,467 $ 122,545
Atlanta MSA 13,350 12,971 26,321
North Carolina 13,243 7,941 21,184
Coastal Georgia 5,600 2,354 7,954
Gainesville MSA 5,311 2,495 7,806
East Tennessee 1,902 1,035 2,937
----------- ----------- -----------
Total NPAs $ 144,484 $ 44,263 $ 188,747
=========== =========== ===========
NPA ACTIVITY
Beginning Balance $ 71,065 $ 47,584 $ 118,649
Loans placed on non-accrual 103,365 - 103,365
Payments received (3,995) - (3,995)
Loan charge-offs (15,335) - (15,335)
Foreclosures (10,616) 10,616 -
Capitalized costs - 818 818
Note / property sales - (13,787) (13,787)
Write downs - (1,772) (1,772)
Net gains (losses) on sales - 804 804
----------- ----------- -----------
Ending Balance $ 144,484 $ 44,263 $ 188,747
=========== =========== ===========
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
First Quarter Fourth Quarter Third Quarter
2012 2011 2011
----------------- ----------------- -----------------
Net Net Net
Charge- Charge- Charge-
Offs to Offs to Offs to
Net Average Net Average Net Average
Charge- Charge- Charge-
(in thousands) Offs Loans(2) Offs Loans(2) Offs Loans(2)
-------- -------- -------- -------- -------- --------
NET CHARGE-OFFS BY
CATEGORY
Commercial (sec.by
RE) $ 3,697 .81% $ 4,962 1.09% $ 2,192 .50%
Commercial &
industrial 669 .62 18,940 17.47 420 .39
Commercial
construction 334 .81 3,318 7.88 1,625 3.54
-------- -------- --------
Total commercial 4,700 .78 27,220 4.51 4,237 .71
Residential
mortgage 5,375 1.91 5,887 2.04 6,110 2.09
Residential
construction 5,314 4.84 12,090 10.36 6,381 5.19
Consumer
installment 478 1.72 427 1.47 818 2.75
-------- -------- --------
Total $ 15,867 1.55 $ 45,624 4.39 $ 17,546 1.68
======== ======== ========
NET CHARGE-OFFS BY
MARKET
North Georgia $ 9,022 2.56% $ 34,970 9.46% $ 8,124 2.16%
Atlanta MSA 2,729 .89 4,195 1.37 2,813 .94
North Carolina 1,679 1.14 3,180 2.10 3,608 2.31
Coastal Georgia 1,329 1.53 335 .41 709 .88
Gainesville MSA 883 1.35 2,572 3.84 1,804 2.64
East Tennessee 225 .34 372 .59 488 .78
-------- -------- --------
Total $ 15,867 1.55 $ 45,624 4.39 $ 17,546 1.68
======== ======== ========
(1) Excludes non-performing loans and foreclosed properties covered by the
loss-sharing agreement with the FDIC, related to the acquisition of
Southern Community Bank.
(2) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Operations (Unaudited)
Three Months Ended
March 31,
------------------------
(in thousands, except per share data) 2012 2011
----------- -----------
Interest revenue:
Loans, including fees $ 55,759 $ 61,107
Investment securities, including tax exempt of
$250 and $259 13,004 13,604
Federal funds sold, reverse repurchase
agreements, commercial paper and deposits in
banks 1,012 819
----------- -----------
Total interest revenue 69,775 75,530
----------- -----------
Interest expense:
Deposits:
NOW 637 1,324
Money market 641 2,028
Savings 37 77
Time 6,159 11,732
----------- -----------
Total deposit interest expense 7,474 15,161
Federal funds purchased, repurchase agreements
and other short-term borrowings 1,045 1,042
Federal Home Loan Bank advances 466 590
Long-term debt 2,372 2,780
----------- -----------
Total interest expense 11,357 19,573
----------- -----------
Net interest revenue 58,418 55,957
Provision for loan losses 15,000 190,000
----------- -----------
Net interest revenue after provision for loan
losses 43,418 (134,043)
----------- -----------
Fee revenue:
Service charges and fees 7,783 6,720
Mortgage loan and other related fees 2,099 1,494
Brokerage fees 813 677
Securities gains, net 557 55
Loss from prepayment of debt (482) -
Other 4,609 2,892
----------- -----------
Total fee revenue 15,379 11,838
----------- -----------
Total revenue 58,797 (122,205)
----------- -----------
Operating expenses:
Salaries and employee benefits 25,225 24,924
Communications and equipment 3,155 3,344
Occupancy 3,771 4,074
Advertising and public relations 846 978
Postage, printing and supplies 979 1,118
Professional fees 1,975 3,330
Foreclosed property 3,825 64,899
FDIC assessments and other regulatory charges 2,510 5,413
Amortization of intangibles 732 762
Other 3,937 6,429
----------- -----------
Total operating expenses 46,955 115,271
----------- -----------
Net income (loss) before income taxes 11,842 (237,476)
Income tax expense (benefit) 314 (140)
----------- -----------
Net income (loss) 11,528 (237,336)
Preferred stock dividends and discount accretion 3,030 2,778
----------- -----------
Net income (loss) available to common
shareholders $ 8,498 $ (240,114)
=========== ===========
Earnings (loss) per common share - Basic / Diluted $ .15 $ (13.00)
Weighted average common shares outstanding - Basic
/ Diluted 57,764 18,466
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share and March 31, December 31, March 31,
per share data) 2012 2011 2011
------------- ------------- -------------
(unaudited) (unaudited) (unaudited)
ASSETS
Cash and due from banks $ 53,147 $ 53,807 $ 153,891
Interest-bearing deposits in
banks 139,439 139,609 465,656
Federal funds sold, reverse
repurchase agreements,
commercial paper and short-
term investments 235,000 185,000 470,087
------------- ------------- -------------
Cash and cash equivalents 427,586 378,416 1,089,634
Securities available for sale 1,898,815 1,790,047 1,638,494
Securities held to maturity
(fair value $318,490,
$343,531 and $248,361) 303,636 330,203 245,430
Loans held for sale - - 80,629
Mortgage loans held for sale 24,809 23,881 25,364
Loans, net of unearned income 4,127,566 4,109,614 4,194,372
Less allowance for loan
losses 113,601 114,468 133,121
------------- ------------- -------------
Loans, net 4,013,965 3,995,146 4,061,251
Assets covered by loss
sharing agreements with the
FDIC 72,854 78,145 125,789
Premises and equipment, net 174,419 175,088 179,143
Bank owned life insurance 80,956 80,599 79,777
Accrued interest receivable 20,292 20,693 21,687
Goodwill and other intangible
assets 7,695 8,428 10,684
Foreclosed property 31,887 32,859 54,378
Unsettled securities sales 43,527 - -
Other assets 73,252 69,915 97,228
------------- ------------- -------------
Total assets $ 7,173,693 $ 6,983,420 $ 7,709,488
============= ============= =============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Deposits:
Demand $ 1,101,757 $ 992,109 $ 864,708
NOW 1,389,016 1,509,896 1,320,136
Money market 1,123,734 1,038,778 967,938
Savings 214,150 199,007 193,591
Time:
Less than $100,000 1,207,479 1,332,394 1,576,505
Greater than $100,000 796,882 847,152 990,289
Brokered 167,521 178,647 684,581
------------- ------------- -------------
Total deposits 6,000,539 6,097,983 6,597,748
Federal funds purchased,
repurchase agreements, and
other short-term borrowings 101,925 102,577 102,107
Federal Home Loan Bank
advances 215,125 40,625 55,125
Long-term debt 120,245 120,225 150,166
Unsettled securities
purchases 119,565 10,325 177,532
Accrued expenses and other
liabilities 36,755 36,199 40,766
------------- ------------- -------------
Total liabilities 6,594,154 6,407,934 7,123,444
------------- ------------- -------------
Shareholders' equity:
Preferred stock, $1 par
value; 10,000,000 shares
authorized;
Series A; $10 stated
value; 21,700 shares
issued and outstanding 217 217 217
Series B; $1,000 stated
value; 180,000 shares
issued and outstanding 177,451 177,092 176,049
Series D; $1,000 stated
value; 16,613 shares
issued and outstanding 16,613 16,613 16,613
Series F; $1,000 stated
value; 195,872 shares
issued and outstanding - - 195,872
Series G; $1,000 stated
value; 151,185 shares
issued and outstanding - - 151,185
Common stock, $1 par value;
100,000,000 shares
authorized; 41,688,647,
41,647,100 and 20,903,111
shares issued and
outstanding 41,689 41,647 20,903
Common stock, non-voting, $1
par value; 30,000,000 shares
authorized; 15,914,209
shares issued and
outstanding 15,914 15,914 -
Common stock issuable;
90,126, 93,681 and 79,428
shares 2,948 3,233 3,681
Capital surplus 1,056,135 1,054,940 738,963
Accumulated deficit (722,363) (730,861) (732,390)
Accumulated other
comprehensive (loss) income (9,065) (3,309) 14,951
------------- ------------- -------------
Total shareholders'
equity 579,539 575,486 586,044
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 7,173,693 $ 6,983,420 $ 7,709,488
============= ============= =============
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2012
----------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- -----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,168,440 $ 55,842 5.39%
Taxable securities (3) 2,127,794 12,754 2.40
Tax-exempt securities (1)(3) 25,438 410 6.45
Federal funds sold and other interest-
earning assets 377,988 1,215 1.29
----------- ---------
Total interest-earning assets 6,699,660 70,221 4.21
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (117,803)
Cash and due from banks 54,664
Premises and equipment 174,849
Other assets (3) 233,676
-----------
Total assets $ 7,045,046
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,458,112 637 .18
Money market 1,069,658 641 .24
Savings 205,402 37 .07
Time less than $100,000 1,271,351 3,026 .96
Time greater than $100,000 821,164 2,415 1.18
Brokered 161,335 718 1.79
----------- ---------
Total interest-bearing deposits 4,987,022 7,474 .60
----------- ---------
Federal funds purchased and other
borrowings 102,258 1,045 4.11
Federal Home Loan Bank advances 138,372 466 1.35
Long-term debt 120,237 2,372 7.93
----------- ---------
Total borrowed funds 360,867 3,883 4.33
----------- ---------
Total interest-bearing liabilities 5,347,889 11,357 .85
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 1,040,587
Other liabilities 79,612
-----------
Total liabilities 6,468,088
Shareholders' equity 576,958
-----------
Total liabilities and shareholders'
equity $ 7,045,046
===========
Net interest revenue $ 58,864
=========
Net interest-rate spread 3.36%
=====
Net interest margin(4) 3.53%
=====
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The
rateused was 39%, reflecting the statutory federal income tax rate and the
federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued and loans that are held for
sale.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $23.6 million in 2012 and $27.2 million in 2011 are
includedin other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2011
----------------------------
Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate
----------- --------- -----
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,598,860 $ 61,070 5.39%
Taxable securities (3) 1,599,481 13,345 3.34
Tax-exempt securities (1)(3) 25,827 424 6.57
Federal funds sold and other interest-
earning assets 677,453 1,126 .66
----------- ---------
Total interest-earning assets 6,901,621 75,965 4.45
----------- ---------
Non-interest-earning assets:
Allowance for loan losses (169,113)
Cash and due from banks 134,341
Premises and equipment 179,353
Other assets (3) 332,827
-----------
Total assets $ 7,379,029
===========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,373,142 1,324 .39
Money market 928,542 2,028 .89
Savings 187,423 77 .17
Time less than $100,000 1,540,342 5,451 1.44
Time greater than $100,000 990,881 4,151 1.70
Brokered 698,288 2,130 1.24
----------- ---------
Total interest-bearing deposits 5,718,618 15,161 1.08
----------- ---------
Federal funds purchased and other
borrowings 101,097 1,042 4.18
Federal Home Loan Bank advances 55,125 590 4.34
Long-term debt 150,157 2,780 7.51
----------- ---------
Total borrowed funds 306,379 4,412 5.84
----------- ---------
Total interest-bearing liabilities 6,024,997 19,573 1.32
---------
Non-interest-bearing liabilities:
Non-interest-bearing deposits 841,351
Other liabilities 58,634
-----------
Total liabilities 6,924,982
Shareholders' equity 454,047
-----------
Total liabilities and shareholders'
equity $ 7,379,029
===========
Net interest revenue $ 56,392
=========
Net interest-rate spread 3.13%
=====
Net interest margin(4) 3.30%
=====
(1) Interest revenue on tax-exempt securities and loans has been increased
to reflect comparable interest on taxable securities and loans. The rate
used was 39%, reflecting the statutory federal income tax rate and the
federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where
the accrual of interest has been discontinued and loans that are held for
sale.
(3) Securities available for sale are shown at amortized cost. Pretax
unrealized gains of $23.6 million in 2012 and $27.2 million in 2011 are
included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided
by average interest-earning assets.
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Email Contact
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