United Community Banks, Inc. : Reports Earnings of $15.9 Million for Fourth Quarter 2013
January 23, 2014 at 06:09 pm IST
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Share
BLAIRSVILLE, GA -- (Marketwired) -- 01/23/14 -- United Community Banks, Inc. (NASDAQ: UCBI)
Net income of $15.9 million, or 22 cents per share
Loans up $62 million, or 6 percent annualized
Redeemed $180 million of TARP preferred stock
All capital ratios remain strong
United Community Banks, Inc. (NASDAQ: UCBI) ("United") today reported substantial progress in growing the long-term value of its franchise. For the fourth quarter and year ended December 31, 2013, net income was $15.9 million, or 22 cents per share, and $273.1 million, or $4.44 per share, respectively. The year-to-date results include the impact of two significant events during the second quarter -- the reversal of the valuation allowance on United's net deferred tax asset and the higher provision for loan losses and foreclosed property costs from the accelerated sales of classified assets.
"I am very pleased with the important progress we made in the fourth quarter and continue to make as we enter 2014," said Jimmy Tallent, president and chief executive officer. "We achieved good loan and deposit growth, which allowed us to hold our net interest margin and grow net interest revenue. I'm especially pleased with the termination of the bank and holding company informal memorandums of understanding with the regulators and the redemption of all our outstanding preferred stock that was originally issued to the U.S. Treasury under the Troubled Asset Relief Program ("TARP") without issuing additional equity. We redeemed $75 million on December 27, 2013 and $105 million on January 10, 2014. These items will have a substantial impact on our future financial performance and our ability to execute our strategic plan."
The fourth quarter provision for credit losses was $3.0 million, the same as the third quarter provision but down substantially from the $14.0 million provision in the fourth quarter of 2012. For the year, our provision for credit losses was $65.5 million compared with $62.5 million in 2012. The 2013 provision was elevated by charge-offs associated with the accelerated classified loan sales in the second quarter. The resulting reduction in classified loans led to lower net charge-offs and lower provisions for the third and fourth quarters of 2013. Fourth quarter net charge-offs were $4.44 million compared with $4.47 million in the third quarter and $14.5 million a year ago. Nonperforming assets at year-end were $31.0 million, representing .42 percent of total assets, which is unchanged from third quarter and down from $128.2 million, or 1.88 percent of total assets, a year ago.
Fourth quarter taxable equivalent net interest revenue totaled $55.9 million, up $1.62 million from the third quarter and down $265,000 from the fourth quarter of 2012. The fourth quarter taxable equivalent net interest margin was 3.26 percent, equal to the third quarter and down 19 basis points from a year ago. "We were able to hold our margin at the third quarter level, which allowed our earning assets and deposit growth to increase net interest revenue," said Tallent. "Competitive loan pricing pressures continue, but we remain sharply focused on growing loans and deposits to offset the impact and grow net interest revenue. We also remain committed to prudent interest rate risk management. To that end, we have been purchasing floating-rate securities, which accounted for 42 percent of our total investment securities portfolio at year-end, up from 39 percent in the third quarter."
Fourth quarter fee revenue of $13.5 million was down $706,000 from third quarter and $1.13 million from a year ago primarily due to lower mortgage fees. Mortgage fees were down $841,000 from the third quarter and down $1.55 million from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $55.5 million in the fourth quarter compared with $76.6 million in the third quarter and $100.5 million in the fourth quarter of 2012.
Operating expenses, excluding foreclosed property costs, were $41.4 million for the fourth quarter compared to $39.9 million in the third quarter of 2013 and $46.1 million a year ago. Fourth quarter 2012 operating expenses included a $4.0 million charge to establish a litigation reserve. The remainder of the decrease from a year ago reflects a lower FDIC deposit insurance assessment, lower professional fees and lower intangible amortization charges. The increase from third quarter was mostly in salaries and benefits expense, reflecting higher incentive compensation due to performance targets that were met.
Foreclosed property costs were $191,000 in the fourth quarter compared to $194,000 in the third quarter and $4.61 million a year ago. Foreclosed property costs remain low as the balance of foreclosed properties has stabilized following the accelerated sales of classified assets in the second quarter.
As of December 31, 2013, capital ratios were as follows: Tier 1 Risk-Based of 12.7 percent; Total Risk-Based of 14.0 percent; Tier 1 Common Risk-Based of 9.3 percent; and Tangible Equity-to-Assets of 11.6 percent. The Tier 1 Leverage ratio was 9.1 percent.
Tallent concluded, "The achievements of 2013 are the culmination of several years of hard work, diligence and dedication by our bankers. They have stood their ground during the most difficult economic environment any of us has ever faced, and played an integral role in our return to offense. The coming year will not be without challenges, but we look forward with confidence to the opportunities ahead."
Conference Call
United will hold a conference call today, Thursday, January 23, 2014, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 29377597. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of United's website at www.ucbi.com.
About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.4 billion and operates 102 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and western South Carolina. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United's common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United's website at www.ucbi.com.
Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2012 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 under the sections entitled "Forward-Looking Statements" and "Risk Factors." Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
2013
2012
(in thousands, except per share data; taxable equivalent)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Fourth Quarter 2013-2012 Change
INCOME SUMMARY
Interest revenue
$
61,695
$
61,426
$
62,088
$
62,114
$
64,450
Interest expense
5,816
7,169
7,157
7,540
8,306
Net interest revenue
55,879
54,257
54,931
54,574
56,144
-
%
Provision for credit losses
3,000
3,000
48,500
11,000
14,000
Fee revenue
13,519
14,225
15,943
12,911
14,645
(8
)
Total revenue
66,398
65,482
22,374
56,485
56,789
Operating expenses
41,614
40,097
48,823
43,770
50,726
(18
)
Income (loss) before income taxes
24,784
25,385
(26,449
)
12,715
6,063
309
Income tax expense (benefit)
8,873
9,885
(256,413
)
950
802
Net income
15,911
15,500
229,964
11,765
5,261
202
Preferred dividends and discount accretion
2,912
3,059
3,055
3,052
3,045
Net income available to common shareholders
$
12,999
$
12,441
$
226,909
$
8,713
$
2,216
487
PERFORMANCE MEASURES
Per common share:
Diluted income
$
.22
$
.21
$
3.90
$
.15
$
.04
450
Book value
11.30
10.99
10.90
6.85
6.67
69
Tangible book value (2)
11.26
10.95
10.82
6.76
6.57
71
Key performance ratios:
Return on common equity (1)(3)
7.52
%
7.38
%
197.22
%
8.51
%
2.15
%
Return on assets (3)
.86
.86
13.34
.70
.31
Net interest margin (3)
3.26
3.26
3.33
3.37
3.45
Efficiency ratio
60.02
58.55
68.89
64.97
71.69
Equity to assets
11.62
11.80
11.57(4
)
8.60
8.63
Tangible equity to assets (2)
11.59
11.76
11.53(4
)
8.53
8.55
Tangible common equity to assets (2)
8.99
9.02
8.79(4
)
5.66
5.67
Tangible common equity to risk-weighted assets (2)
13.17
13.34
13.16
8.45
8.26
ASSET QUALITY *
Non-performing loans
$
26,819
$
26,088
$
27,864
$
96,006
$
109,894
Foreclosed properties
4,221
4,467
3,936
16,734
18,264
Total non-performing assets (NPAs)
31,040
30,555
31,800
112,740
128,158
Allowance for loan losses
76,762
80,372
81,845
105,753
107,137
Net charge-offs
4,445
4,473
72,408
12,384
14,505
Allowance for loan losses to loans
1.77
%
1.88
%
1.95
%
2.52
%
2.57
%
Net charge-offs to average loans (3)
.41
.42
6.87
1.21
1.39
NPAs to loans and foreclosed properties
.72
.72
.76
2.68
3.06
NPAs to total assets
.42
.42
.44
1.65
1.88
AVERAGE BALANCES ($ in millions)
Loans
$
4,315
$
4,250
$
4,253
$
4,197
$
4,191
3
Investment securities
2,280
2,178
2,161
2,141
2,088
9
Earning assets
6,823
6,615
6,608
6,547
6,482
5
Total assets
7,370
7,170
6,915
6,834
6,778
9
Deposits
6,190
5,987
5,983
5,946
5,873
5
Shareholders' equity
856
846
636
588
585
46
Common shares - basic (thousands)
59,923
59,100
58,141
58,081
57,971
Common shares - diluted (thousands)
59,925
59,202
58,141
58,081
57,971
AT PERIOD END ($ in millions)
Loans *
$
4,329
$
4,267
$
4,189
$
4,194
$
4,175
4
Investment securities
2,312
2,169
2,152
2,141
2,079
11
Total assets
7,425
7,243
7,163
6,849
6,802
9
Deposits
6,202
6,113
6,012
6,026
5,952
4
Shareholders' equity
796
852
829
592
581
37
Common shares outstanding (thousands)
59,432
59,412
57,831
57,767
57,741
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Twelve
Months Ended
December 31,
(in thousands, except per share data; taxable equivalent)
2013
2012
YTD
2013-2012 Change
INCOME SUMMARY
Interest revenue
$
247,323
$
267,667
Interest expense
27,682
37,909
Net interest revenue
219,641
229,758
(4
)%
Provision for credit losses
65,500
62,500
Fee revenue
56,598
56,112
1
Total revenue
210,739
223,370
Operating expenses
174,304
186,774
(7
)
Income (loss) before income taxes
36,435
36,596
-
Income tax expense (benefit)
(236,705
)
2,740
Net income
273,140
33,856
707
Preferred dividends and discount accretion
12,078
12,148
Net income available to common shareholders
$
261,062
$
21,708
1,103
PERFORMANCE MEASURES
Per common share:
Diluted income
$
4.44
$
.38
1,068
Book value
11.30
6.67
69
Tangible book value (2)
11.26
6.57
71
Key performance ratios:
Return on common equity (1)(3)
46.72
%
5.43
%
Return on assets (3)
3.86
.49
Net interest margin (3)
3.30
3.51
Efficiency ratio
63.14
65.43
Equity to assets
10.35
8.47
Tangible equity to assets (2)
10.31
8.38
Tangible common equity to assets (2)
7.55
5.54
Tangible common equity to risk-weighted assets (2)
13.17
8.26
ASSET QUALITY *
Non-performing loans
$
26,819
$
109,894
Foreclosed properties
4,221
18,264
Total non-performing assets (NPAs)
31,040
128,158
Allowance for loan losses
76,762
107,137
Net charge-offs
93,710
69,831
Allowance for loan losses to loans
1.77
%
2.57
%
Net charge-offs to average loans (3)
2.22
1.69
NPAs to loans and foreclosed properties
.72
3.06
NPAs to total assets
.42
1.88
AVERAGE BALANCES ($ in millions)
Loans
$
4,254
$
4,166
2
Investment securities
2,190
2,089
5
Earning assets
6,649
6,547
2
Total assets
7,074
6,865
3
Deposits
6,027
5,885
2
Shareholders' equity
732
582
26
Common shares - basic (thousands)
58,787
57,857
Common shares - diluted (thousands)
58,845
57,857
AT PERIOD END ($ in millions)
Loans *
$
4,329
$
4,175
4
Investment securities
2,312
2,079
11
Total assets
7,425
6,802
9
Deposits
6,202
5,952
4
Shareholders' equity
796
581
37
Common shares outstanding (thousands)
59,432
57,741
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data; taxable equivalent)
2013
2012
2011
2010
2009
INCOME SUMMARY
Net interest revenue
$
219,641
$
229,758
$
238,670
$
244,637
$
244,834
Operating provision for credit losses (1)
65,500
62,500
251,000
234,750
310,000
Operating fee revenue (2)
56,598
56,112
44,907
46,963
51,357
Total operating revenue (1)(2)
210,739
223,370
32,577
56,850
(13,809
)
Operating expenses (3)
174,304
186,774
261,599
242,952
217,050
Loss on sale of nonperforming assets
-
-
-
45,349
-
Operating income (loss) from continuing operations before taxes
36,435
36,596
(229,022
)
(231,451
)
(230,859
)
Operating income taxes
(236,705
)
2,740
(2,276
)
73,218
(91,754
)
Net operating income (loss) from continuing operations
273,140
33,856
(226,746
)
(304,669
)
(139,105
)
Gain from acquisition, net of tax
-
-
-
-
7,062
Noncash goodwill impairment charges
-
-
-
(210,590
)
(95,000
)
Severance cost, net of tax benefit
-
-
-
-
(1,797
)
Fraud loss provision and subsequent recovery, net of tax benefit
-
-
-
11,750
-
Net income (loss) from discontinued operations
-
-
-
(101
)
513
Gain from sale of subsidiary, net of income taxes and selling costs
-
-
-
1,266
-
Net income (loss)
273,140
33,856
(226,746
)
(502,344
)
(228,327
)
Preferred dividends and discount accretion
12,078
12,148
11,838
10,316
10,242
Net income (loss) available to common shareholders
$
261,062
$
21,708
$
(238,584
)
$
(512,660
)
$
(238,569
)
PERFORMANCE MEASURES
Per common share:
Diluted operating earnings (loss) from continuing operations (1)(2)(3)
$
4.44
$
.38
$
(5.97
)
$
(16.64
)
$
(12.37
)
Diluted earnings (loss) from continuing operations
4.44
.38
(5.97
)
(27.15
)
(19.80
)
Diluted earnings (loss)
4.44
.38
(5.97
)
(27.09
)
(19.76
)
Book value
11.30
6.67
6.62
15.40
41.78
Tangible book value (5)
11.26
6.57
6.47
14.80
30.09
Key performance ratios:
Return on common equity (4)
46.72
5.43
(93.57
)%
(85.08
)%
(34.40
)%
Return on assets
3.86
.49
(3.15
)
(6.61
)
(2.76
)
Net interest margin
3.30
3.51
3.52
3.59
3.29
Operating efficiency ratio from continuing operations (2)(3)
63.14
65.43
92.27
98.98
73.97
Equity to assets
10.35
8.47
7.75
10.77
11.12
Tangible equity to assets (5)
10.31
8.38
7.62
8.88
8.33
Tangible common equity to assets (5)
7.55
5.54
3.74
6.52
6.15
Tangible common equity to risk-weighted assets (5)
13.17
8.26
8.25
5.64
10.39
ASSET QUALITY *
Non-performing loans
$
26,819
$
109,894
$
127,479
$
179,094
$
264,092
Foreclosed properties
4,221
18,264
32,859
142,208
120,770
Total non-performing assets (NPAs)
31,040
128,158
160,338
321,302
384,862
Allowance for loan losses
76,762
107,137
114,468
174,695
155,602
Operating net charge-offs (1)
93,710
69,831
311,227
215,657
276,669
Allowance for loan losses to loans
1.77
2.57
%
2.79
%
3.79
%
3.02
%
Operating net charge-offs to average loans (1)
2.22
1.69
7.33
4.42
5.03
NPAs to loans and foreclosed properties
.72
3.06
3.87
6.77
7.30
NPAs to total assets
.42
1.88
2.30
4.42
4.81
AVERAGE BALANCES ($ in millions)
Loans
$
4,254
$
4,166
$
4,307
$
4,961
$
5,548
Investment securities
2,190
2,089
1,999
1,453
1,656
Earning assets
6,649
6,547
6,785
6,822
7,465
Total assets
7,074
6,865
7,189
7,605
8,269
Deposits
6,027
5,885
6,275
6,373
6,713
Shareholders' equity
732
582
557
819
920
Common shares - Basic (thousands)
58,787
57,857
39,943
18,925
12,075
Common shares - Diluted (thousands)
58,845
57,857
39,943
18,925
12,075
AT YEAR END ($ in millions)
Loans *
$
4,329
$
4,175
$
4,110
$
4,604
$
5,151
Investment securities
2,312
2,079
2,120
1,490
1,530
Total assets
7,425
6,802
6,983
7,276
8,000
Deposits
6,202
5,952
6,098
6,469
6,628
Shareholders' equity
796
581
575
469
962
Common shares outstanding (thousands)
59,432
57,741
57,561
18,937
18,809
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes the gain from acquisition of $11.4 million, net of income tax expense of $4.3 million in 2009. (3) Excludes goodwill impairment charges of $211 million and $95 million in 2010 and 2009, respectively, and severance costs of $2.9 million, net of income tax benefit of $1.1 million in 2009. (4) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (5) Excludes effect of acquisition related intangibles and associated amortization.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2013
2012
(in thousands, except per share data; taxable equivalent)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent
$
61,695
$
61,426
$
62,088
$
62,114
$
64,450
Taxable equivalent adjustment
(380
)
(370
)
(368
)
(365
)
(381
)
Interest revenue (GAAP)
$
61,315
$
61,056
$
61,720
$
61,749
$
64,069
Net interest revenue reconciliation
Net interest revenue - taxable equivalent
$
55,879
$
54,257
$
54,931
$
54,574
$
56,144
Taxable equivalent adjustment
(380
)
(370
)
(368
)
(365
)
(381
)
Net interest revenue (GAAP)
$
55,499
$
53,887
$
54,563
$
54,209
$
55,763
Provision for credit losses reconciliation
Operating provision for credit losses
$
3,000
$
3,000
$
48,500
$
11,000
$
14,000
Partial recovery of special fraud-related loan loss
-
-
-
-
-
Provision for credit losses (GAAP)
$
3,000
$
3,000
$
48,500
$
11,000
$
14,000
Fee revenue reconciliation
Operating fee revenue
$
13,519
$
14,225
$
15,943
$
12,911
$
14,645
Gain from acquisition
-
-
-
-
-
Fee revenue (GAAP)
$
13,519
$
14,225
$
15,943
$
12,911
$
14,645
Total revenue reconciliation
Total operating revenue
$
66,398
$
65,482
$
22,374
$
56,485
$
56,789
Taxable equivalent adjustment
(380
)
(370
)
(368
)
(365
)
(381
)
Gain from acquisition
-
-
-
-
-
Partial recovery of special fraud-related loan loss
-
-
-
-
-
Total revenue (GAAP)
$
66,018
$
65,112
$
22,006
$
56,120
$
56,408
Expense reconciliation
Operating expense
$
41,614
$
40,097
$
48,823
$
43,770
$
50,726
Noncash goodwill impairment charge
-
-
-
-
-
Severance costs
-
-
-
-
-
Operating expense (GAAP)
$
41,614
$
40,097
$
48,823
$
43,770
$
50,726
Income (loss) before taxes reconciliation
Income (loss) before taxes
$
24,784
$
25,385
$
(26,449
)
$
12,715
$
6,063
Taxable equivalent adjustment
(380
)
(370
)
(368
)
(365
)
(381
)
Gain from acquisition
-
-
-
-
-
Noncash goodwill impairment charge
-
-
-
-
-
Severance costs
-
-
-
-
-
Partial recovery of special fraud-related loan loss
-
-
-
-
-
Income (loss) before taxes (GAAP)
$
24,404
$
25,015
$
(26,817
)
$
12,350
$
5,682
Income tax expense (benefit) reconciliation
Income tax expense (benefit)
$
8,873
$
9,885
$
(256,413
)
$
950
$
802
Taxable equivalent adjustment
(380
)
(370
)
(368
)
(365
)
(381
)
Gain from acquisition, tax expense
-
-
-
-
-
Severance costs, tax benefit
-
-
-
-
-
Income tax expense (benefit) (GAAP)
$
8,493
$
9,515
$
(256,781
)
$
585
$
421
Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share
$
.22
$
.21
$
3.90
$
.15
$
.04
Gain from acquisition
-
-
-
-
-
Noncash goodwill impairment charge
-
-
-
-
-
Severance costs
-
-
-
-
-
Partial recovery of special fraud-related loan loss
-
-
-
-
-
Diluted earnings (loss) from continuing operations per common share (GAAP)
$
.22
$
.21
$
3.90
$
.15
$
.04
Book value per common share reconciliation
Tangible book value per common share
$
11.26
$
10.95
$
10.82
$
6.76
$
6.57
Effect of goodwill and other intangibles
.04
.04
.08
.09
.10
Book value per common share (GAAP)
$
11.30
$
10.99
$
10.90
$
6.85
$
6.67
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations
60.02
%
58.55
%
68.89
%
64.97
%
71.69
Gain from acquisition
-
-
-
-
-
Noncash goodwill impairment charge
-
-
-
-
-
Severance costs
-
-
-
-
-
Efficiency ratio from continuing operations (GAAP)
60.02
%
58.55
%
68.89
%
64.97
%
71.69
Average equity to assets reconciliation
Tangible common equity to assets
8.99
%
9.02
%
8.79
%
5.66
%
5.67
Effect of preferred equity
2.60
2.74
2.74
2.87
2.88
Tangible equity to assets
11.59
11.76
11.53
8.53
8.55
Effect of goodwill and other intangibles
.03
.04
.04
.07
.08
Equity to assets (GAAP)
11.62
%
11.80
%
11.57
%
8.60
%
8.63
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets
13.17
%
13.34
%
13.16
%
8.45
%
8.26
Effect of other comprehensive income
.39
.49
.29
.49
.51
Effect of deferred tax limitation
(4.25
)
(4.72
)
(4.99
)
-
-
Effect of trust preferred
1.04
1.09
1.11
1.15
1.15
Effect of preferred equity
2.38
4.01
4.11
4.22
4.24
Tier I capital ratio (Regulatory)
12.73
%
14.21
%
13.68
%
14.31
%
14.16
Net charge-offs reconciliation
Operating net charge-offs
$
4,445
$
4,473
$
72,408
$
12,384
$
14,505
Subsequent partial recovery of fraud-related charge-off
-
-
-
-
-
Net charge-offs (GAAP)
$
4,445
$
4,473
$
72,408
$
12,384
$
14,505
Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans
.41
%
.42
%
6.87
%
1.21
%
1.39
Subsequent partial recovery of fraud-related charge-off
-
-
-
-
-
Net charge-offs to average loans (GAAP)
.41
%
.42
%
6.87
%
1.21
%
1.39
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
For the Twelve Months
Ended December 31,
(in thousands, except per share data; taxable equivalent)
2013
2012
2011
2010
2009
Interest revenue reconciliation
Interest revenue - taxable equivalent
$
247,323
$
267,667
$
304,308
$
344,493
$
404,961
Taxable equivalent adjustment
(1,483
)
(1,690
)
(1,707
)
(2,001
)
(2,132
)
Interest revenue (GAAP)
$
245,840
$
265,977
$
302,601
$
342,492
$
402,829
Net interest revenue reconciliation
Net interest revenue - taxable equivalent
$
219,641
$
229,758
$
238,670
$
244,637
$
244,834
Taxable equivalent adjustment
(1,483
)
(1,690
)
(1,707
)
(2,001
)
(2,132
)
Net interest revenue (GAAP)
$
218,158
$
228,068
$
236,963
$
242,636
$
242,702
Provision for credit losses reconciliation
Operating provision for credit losses
$
65,500
$
62,500
$
251,000
$
234,750
$
310,000
Partial recovery of special fraud-related loan loss
-
-
-
(11,750
)
-
Provision for credit losses (GAAP)
$
65,500
$
62,500
$
251,000
$
223,000
$
310,000
Fee revenue reconciliation
Operating fee revenue
$
56,598
$
56,112
$
44,907
$
46,963
$
51,357
Gain from acquisition
-
-
-
-
11,390
Fee revenue (GAAP)
$
56,598
$
56,112
$
44,907
$
46,963
$
62,747
Total revenue reconciliation
Total operating revenue
$
210,739
$
223,370
$
32,577
$
56,850
$
(13,809
)
Taxable equivalent adjustment
(1,483
)
(1,690
)
(1,707
)
(2,001
)
(2,132
)
Gain from acquisition
-
-
-
-
11,390
Partial recovery of special fraud-related loan loss
-
-
-
11,750
-
Total revenue (GAAP)
$
209,256
$
221,680
$
30,870
$
66,599
$
(4,551
)
Expense reconciliation
Operating expense
$
174,304
$
186,774
$
261,599
$
288,301
$
217,050
Noncash goodwill impairment charge
-
-
-
210,590
95,000
Severance costs
-
-
-
-
2,898
Operating expense (GAAP)
$
174,304
$
186,774
$
261,599
$
498,891
$
314,948
Income (loss) before taxes reconciliation
Income (loss) before taxes
$
36,435
$
36,596
$
(229,022
)
$
(231,451
)
$
(230,859
)
Taxable equivalent adjustment
(1,483
)
(1,690
)
(1,707
)
(2,001
)
(2,132
)
Gain from acquisition
-
-
-
-
11,390
Noncash goodwill impairment charge
-
-
-
(210,590
)
(95,000
)
Severance costs
-
-
-
-
(2,898
)
Partial recovery of special fraud-related loan loss
-
-
-
11,750
-
Income (loss) before taxes (GAAP)
$
34,952
$
34,906
$
(230,729
)
$
(432,292
)
$
(319,499
)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)
$
(236,705
)
$
2,740
$
(2,276
)
$
73,218
$
(91,754
)
Taxable equivalent adjustment
(1,483
)
(1,690
)
(1,707
)
(2,001
)
(2,132
)
Gain from acquisition, tax expense
-
-
-
-
4,328
Severance costs, tax benefit
-
-
-
-
(1,101
)
Income tax expense (benefit) (GAAP)
$
(238,188
)
$
1,050
$
(3,983
)
$
71,217
$
(90,659
)
Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share
$
4.44
$
.38
$
(5.97
)
$
(16.64
)
$
(12.37
)
Gain from acquisition
-
-
-
-
.58
Noncash goodwill impairment charge
-
-
-
(11.13
)
(7.86
)
Severance costs
-
-
-
-
(.15
)
Partial recovery of special fraud-related loan loss
-
-
-
.62
-
Diluted earnings (loss) from continuing operations per common share (GAAP)
$
4.44
$
.38
$
(5.97
)
$
(27.15
)
$
(19.80
)
Book value per common share reconciliation
Tangible book value per common share
$
11.26
$
6.57
$
6.47
$
14.80
$
30.09
Effect of goodwill and other intangibles
.04
.10
.15
.60
11.69
Book value per common share (GAAP)
$
11.30
$
6.67
$
6.62
$
15.40
$
41.78
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations
63.14
%
65.43
%
92.27
%
98.98
%
73.97
%
Gain from acquisition
-
-
-
-
(2.77
)
Noncash goodwill impairment charge
-
-
-
72.29
31.17
Severance costs
-
-
-
-
.95
Efficiency ratio from continuing operations (GAAP)
63.14
%
65.43
%
92.27
%
171.27
%
103.32
%
Average equity to assets reconciliation
Tangible common equity to assets
7.55
%
5.54
%
3.74
%
6.52
%
6.15
%
Effect of preferred equity
2.76
2.84
3.88
2.36
2.18
Tangible equity to assets
10.31
8.38
7.62
8.88
8.33
Effect of goodwill and other intangibles
.04
.09
.13
1.89
2.79
Equity to assets (GAAP)
10.35
%
8.47
%
7.75
%
10.77
%
11.12
%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets
13.17
%
8.26
%
8.25
%
5.64
%
10.39
%
Effect of other comprehensive income
.39
.51
(.03
)
(.42
)
(.87
)
Effect of deferred tax limitation
(4.25
)
-
-
-
(1.27
)
Effect of trust preferred
1.04
1.15
1.18
1.06
.97
Effect of preferred equity
2.38
4.24
4.29
3.53
3.19
Tier I capital ratio (Regulatory)
12.73
%
14.16
%
13.69
%
9.81
%
12.41
%
Net charge-offs reconciliation
Operating net charge-offs
$
93,710
$
69,831
$
311,227
$
215,657
$
276,669
Subsequent partial recovery of fraud-related charge-off
-
-
-
(11,750
)
-
Net charge-offs (GAAP)
$
93,710
$
69,831
$
311,227
$
203,907
$
276,669
Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans
2.22
%
1.69
%
7.33
%
4.42
%
5.03
%
Subsequent partial recovery of fraud-related charge-off
-
-
-
(.25
)
-
Net charge-offs to average loans (GAAP)
2.22
%
1.69
%
7.33
%
4.17
%
5.03
%
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2013
2012
(in millions)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
LOANS BY CATEGORY
Owner occupied commercial RE
$
1,134
$
1,129
$
1,119
$
1,130
$
1,131
Income producing commercial RE
623
614
629
674
682
Commercial & industrial
472
457
437
454
458
Commercial construction
149
137
133
152
155
Total commercial
2,378
2,337
2,318
2,410
2,426
Residential mortgage
875
888
876
850
829
Home equity lines of credit
441
421
402
396
385
Residential construction
328
318
332
372
382
Consumer installment
307
303
261
166
153
Total loans
$
4,329
$
4,267
$
4,189
$
4,194
$
4,175
LOANS BY MARKET
North Georgia
$
1,240
$
1,262
$
1,265
$
1,363
$
1,364
Atlanta MSA
1,275
1,246
1,227
1,262
1,250
North Carolina
572
575
576
575
579
Coastal Georgia
423
421
397
398
400
Gainesville MSA
255
253
256
259
261
East Tennessee
280
277
282
282
283
South Carolina
88
47
34
-
-
Other (2)
196
186
152
55
38
Total loans
$
4,329
$
4,267
$
4,189
$
4,194
$
4,175
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development
$
39
$
40
$
42
$
57
$
62
Land loans
38
35
36
42
46
Lot loans
166
167
173
188
193
Total
243
242
251
287
301
House loans
Spec
23
30
34
40
41
Sold
62
46
47
45
40
Total
85
76
81
85
81
Total residential construction
$
328
$
318
$
332
$
372
$
382
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2013
2012
(in millions)
Fourth Quarter
Third Quarter
Fourth Quarter
Linked Quarter Change
Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE
$
1,134
$
1,129
$
1,131
$
5
$
3
Income producing commercial RE
623
614
682
9
(59
)
Commercial & industrial
472
457
458
15
14
Commercial construction
149
137
155
12
(6
)
Total commercial
2,378
2,337
2,426
41
(48
)
Residential mortgage
875
888
829
(13
)
46
Home equity lines of credit
441
421
385
20
56
Residential construction
328
318
382
10
(54
)
Consumer installment
307
303
153
4
154
Total loans
$
4,329
$
4,267
$
4,175
62
154
LOANS BY MARKET
North Georgia
$
1,240
$
1,262
$
1,364
(22
)
(124
)
Atlanta MSA
1,275
1,246
1,250
29
25
North Carolina
572
575
579
(3
)
(7
)
Coastal Georgia
423
421
400
2
23
Gainesville MSA
255
253
261
2
(6
)
East Tennessee
280
277
283
3
(3
)
South Carolina
88
47
-
41
88
Other (2)
196
186
38
10
158
Total loans
$
4,329
$
4,267
$
4,175
62
154
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development
$
39
$
40
$
62
(1
)
(23
)
Land loans
38
35
46
3
(8
)
Lot loans
166
167
193
(1
)
(27
)
Total
243
242
301
1
(58
)
House loans
Spec
23
30
41
(7
)
(18
)
Sold
62
46
40
16
22
Total
85
76
81
9
4
Total residential construction
$
328
$
318
$
382
10
(54
)
(1) Excludes total loans of $20.3 million, $23.3 million, $25.7 million, $28.3 million and $33.4 million as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End (1)
(in millions)
2013
2012
2011
2010
2009
LOANS BY CATEGORY
Owner occupied commercial RE
$
1,134
$
1,131
$
1,112
$
980
$
963
Income producing commercial RE
623
682
710
781
816
Commercial & industrial
472
458
428
441
390
Commercial construction
149
155
164
297
363
Total commercial
2,378
2,426
2,414
2,499
2,532
Residential mortgage
875
829
835
944
1,052
Home equity lines of credit
441
385
300
335
375
Residential construction
328
382
448
695
1,050
Consumer / installment
307
153
113
131
142
Total loans
$
4,329
$
4,175
$
4,110
$
4,604
$
5,151
LOANS BY MARKET
North Georgia
$
1,240
$
1,364
$
1,426
$
1,689
$
1,884
Atlanta MSA
1,275
1,250
1,220
1,310
1,435
North Carolina
572
579
597
702
772
Coastal Georgia
423
400
346
335
405
Gainesville MSA
255
261
265
312
390
East Tennessee
280
283
256
256
265
South Carolina
88
-
-
-
-
Other (2)
196
38
-
-
-
Total loans
$
4,329
$
4,175
$
4,110
$
4,604
$
5,151
(1) Excludes total loans of $20.3 million, $33.4 million, $54.5 million, $68.2 million and $85.1 million as of December 31, 2013, 2012, 2011, 2010 and 2009, respectively, that are covered by loss-sharing agreements with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Fourth Quarter 2013
Non-performing
Foreclosed
Total
(in thousands)
Loans
Properties
NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE
$
5,822
$
832
$
6,654
Income producing CRE
2,518
-
2,518
Commercial & industrial
427
-
427
Commercial construction
361
-
361
Total commercial
9,128
832
9,960
Residential mortgage
11,730
2,684
14,414
Home equity lines of credit
1,448
389
1,837
Residential construction
4,264
316
4,580
Consumer installment
249
-
249
Total NPAs
$
26,819
$
4,221
$
31,040
Balance as a % of Unpaid Principal
65.3
%
44.5
%
61.4
%
NONPERFORMING ASSETS BY MARKET
North Georgia
$
12,352
$
2,494
$
14,846
Atlanta MSA
2,830
684
3,514
North Carolina
6,567
683
7,250
Coastal Georgia
2,342
173
2,515
Gainesville MSA
928
-
928
East Tennessee
1,800
187
1,987
South Carolina
-
-
-
Other (3)
-
-
-
Total NPAs
$
26,819
$
4,221
$
31,040
NONPERFORMING ASSETS ACTIVITY
Beginning Balance
$
26,088
$
4,467
$
30,555
Loans placed on non-accrual
11,043
-
11,043
Payments received
(1,688
)
-
(1,688
)
Loan charge-offs
(4,621
)
-
(4,621
)
Foreclosures
(4,003
)
4,003
-
Capitalized costs
-
-
-
Property sales
-
(4,684
)
(4,684
)
Write downs
-
(326
)
(326
)
Net gains (losses) on sales
-
761
761
Ending Balance
$
26,819
$
4,221
$
31,040
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Third Quarter 2013
Non-performing
Foreclosed
Total
(in thousands)
Loans
Properties
NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE
$
6,358
$
591
$
6,949
Income producing CRE
1,657
139
1,796
Commercial & industrial
609
-
609
Commercial construction
343
376
719
Total commercial
8,967
1,106
10,073
Residential mortgage
11,335
1,679
13,014
Home equity lines of credit
1,169
475
1,644
Residential construction
4,097
1,207
5,304
Consumer installment
520
-
520
Total NPAs
$
26,088
$
4,467
$
30,555
Balance as a % of Unpaid Principal
61.6
%
41.5
%
57.6
%
NONPERFORMING ASSETS BY MARKET
North Georgia
$
13,652
$
1,726
$
15,378
Atlanta MSA
3,096
1,026
4,122
North Carolina
5,680
762
6,442
Coastal Georgia
995
928
1,923
Gainesville MSA
1,036
-
1,036
East Tennessee
1,629
25
1,654
South Carolina
-
-
-
Other (3)
-
-
-
Total NPAs
$
26,088
$
4,467
$
30,555
NONPERFORMING ASSETS ACTIVITY
Beginning Balance
$
27,864
$
3,936
$
31,800
Loans placed on non-accrual
9,959
-
9,959
Payments received
(3,601
)
-
(3,601
)
Loan charge-offs
(5,395
)
-
(5,395
)
Foreclosures
(2,739
)
2,739
-
Capitalized costs
-
7
7
Property sales
-
(2,534
)
(2,534
)
Write downs
-
(329
)
(329
)
Net gains (losses) on sales
-
648
648
Ending Balance
$
26,088
$
4,467
$
30,555
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Second Quarter 2013
Non-performing
Foreclosed
Total
(in thousands)
Loans
Properties
NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE
$
5,283
$
547
$
5,830
Income producing CRE
1,954
-
1,954
Commercial & industrial
548
-
548
Commercial construction
504
376
880
Total commercial
8,289
923
9,212
Residential mortgage
12,847
1,303
14,150
Home equity lines of credit
1,491
140
1,631
Residential construction
4,838
1,570
6,408
Consumer installment
399
-
399
Total NPAs
$
27,864
$
3,936
$
31,800
Balance as a % of Unpaid Principal
62.6
%
31.6
%
55.8
%
NONPERFORMING ASSETS BY MARKET
North Georgia
$
12,830
$
1,617
$
14,447
Atlanta MSA
3,803
1,197
5,000
North Carolina
6,512
295
6,807
Coastal Georgia
2,588
627
3,215
Gainesville MSA
1,008
-
1,008
East Tennessee
1,123
200
1,323
South Carolina
-
-
-
Other (3)
-
-
-
Total NPAs
$
27,864
$
3,936
$
31,800
NONPERFORMING ASSETS ACTIVITY
Beginning Balance
$
96,006
$
16,734
$
112,740
Loans placed on non-accrual
13,200
-
13,200
Payments received
(47,937
)
-
(47,937
)
Loan charge-offs
(23,972
)
-
(23,972
)
Foreclosures
(9,433
)
9,433
-
Capitalized costs
-
55
55
Property sales
-
(17,972
)
(17,972
)
Write downs
-
(1,369
)
(1,369
)
Net gains (losses) on sales
-
(2,945
)
(2,945
)
Ending Balance
$
27,864
$
3,936
$
31,800
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
Fourth Quarter 2013
Third Quarter 2013
Second Quarter 2013
(in thousands)
Net Charge-Offs
Net Charge-Offs to Average Loans(2)
Net Charge-Offs
Net Charge-Offs to Average Loans(2)
Net Charge-Offs
Net Charge-Offs to Average Loans(2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE
$
1,638
.57
%
$
1,641
.58
%
$
16,545
5.85
%
Income producing CRE
320
.21
216
.14
8,921
5.45
Commercial & industrial
(149
)
(.13
)
136
.12
15,576
13.91
Commercial construction
(9
)
(.02
)
133
.39
6,295
17.53
Total commercial
1,800
.30
2,126
.36
47,337
7.96
Residential mortgage
1,426
.64
693
.31
5,469
2.52
Home equity lines of credit
417
.38
382
.37
1,040
1.04
Residential construction
327
.40
1,072
1.31
18,506
20.91
Consumer installment
475
.62
200
.28
56
.10
Total
$
4,445
.41
$
4,473
.42
$
72,408
6.87
NET CHARGE-OFFS BY MARKET
North Georgia
$
1,603
.51
%
$
2,090
.66
%
$
59,102
17.20
%
Atlanta MSA
636
.20
1,013
.33
9,986
3.21
North Carolina
1,104
.76
704
.49
1,952
1.36
Coastal Georgia
345
.33
139
.14
480
.49
Gainesville MSA
346
.54
97
.15
123
.19
East Tennessee
323
.46
359
.51
711
1.01
South Carolina
-
-
-
-
-
-
Other (3)
88
.20
71
.17
54
.24
Total
$
4,445
.41
$
4,473
.42
$
72,408
6.87
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in thousands, except per share data)
2013
2012
2013
2012
Interest revenue:
Loans, including fees
$
49,066
$
53,335
$
200,893
$
217,378
Investment securities, including tax exempt of $203, $219, $827 and $956
11,253
9,841
41,158
44,613
Deposits in banks and short-term investments
996
893
3,789
3,986
Total interest revenue
61,315
64,069
245,840
265,977
Interest expense:
Deposits:
NOW
473
462
1,759
2,049
Money market
569
617
2,210
2,518
Savings
24
38
133
150
Time
1,593
3,558
10,464
19,097
Total deposit interest expense
2,659
4,675
14,566
23,814
Short-term borrowings
508
524
2,071
2,987
Federal Home Loan Bank advances
3
25
68
907
Long-term debt
2,646
3,082
10,977
10,201
Total interest expense
5,816
8,306
27,682
37,909
Net interest revenue
55,499
55,763
218,158
228,068
Provision for credit losses
3,000
14,000
65,500
62,500
Net interest revenue after provision for loan losses
52,499
41,763
152,658
165,568
Fee revenue:
Service charges and fees
8,166
8,375
31,997
31,670
Mortgage loan and other related fees
1,713
3,262
9,925
10,483
Brokerage fees
1,361
751
4,465
3,082
Securities gains, net
70
31
186
7,078
Loss from prepayment of debt
-
-
-
(6,681
)
Other
2,209
2,226
10,025
10,480
Total fee revenue
13,519
14,645
56,598
56,112
Total revenue
66,018
56,408
209,256
221,680
Operating expenses:
Salaries and employee benefits
24,817
23,586
96,233
96,026
Communications and equipment
3,414
3,320
13,233
12,940
Occupancy
3,735
3,455
13,930
14,304
Advertising and public relations
781
987
3,718
3,855
Postage, printing and supplies
882
1,050
3,283
3,899
Professional fees
2,102
2,685
9,617
8,792
Foreclosed property
191
4,611
7,869
13,993
FDIC assessments and other regulatory charges
1,804
2,505
9,219
10,097
Amortization of intangibles
408
727
2,031
2,917
Other
3,480
7,800
15,171
19,951
Total operating expenses
41,614
50,726
174,304
186,774
Net income before income taxes
24,404
5,682
34,952
34,906
Income tax expense (benefit)
8,493
421
(238,188
)
1,050
Net income
15,911
5,261
273,140
33,856
Preferred stock dividends and discount accretion
2,912
3,045
12,078
12,148
Net income available to common shareholders
$
12,999
$
2,216
$
261,062
$
21,708
Earnings per common share
Basic
$
.22
$
.04
$
4.44
$
.38
Diluted
.22
.04
4.44
.38
Weighted average common shares outstanding
Basic
59,923
57,971
58,787
57,857
Diluted
59,925
57,971
58,845
57,857
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
(in thousands, except share and per share data)
December 31, 2013
December 31, 2012
(unaudited)
(audited)
ASSETS
Cash and due from banks
$
71,230
$
66,536
Interest-bearing deposits in banks
119,669
124,613
Short-term investments
37,999
60,000
Cash and cash equivalents
228,898
251,149
Securities available for sale
1,832,217
1,834,593
Securities held to maturity (fair value $485,585 and $261,131)
479,742
244,184
Mortgage loans held for sale
10,319
28,821
Loans, net of unearned income
4,329,266
4,175,008
Less allowance for loan losses
(76,762
)
(107,137
)
Loans, net
4,252,504
4,067,871
Assets covered by loss sharing agreements with the FDIC
22,882
47,467
Premises and equipment, net
163,589
168,920
Bank owned life insurance
80,670
81,867
Accrued interest receivable
19,598
18,659
Intangible assets
3,480
5,510
Foreclosed property
4,221
18,264
Net deferred tax asset
258,518
-
Other assets
68,781
34,954
Total assets
$
7,425,419
$
6,802,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand
$
1,388,512
$
1,252,605
NOW
1,427,939
1,316,453
Money market
1,227,575
1,149,912
Savings
251,125
227,308
Time:
Less than $100,000
892,961
1,055,271
Greater than $100,000
588,689
705,558
Brokered
424,704
245,033
Total deposits
6,201,505
5,952,140
Short-term borrowings
53,241
52,574
Federal Home Loan Bank advances
120,125
40,125
Long-term debt
129,865
124,805
Unsettled securities purchases
29,562
-
Accrued expenses and other liabilities
95,406
51,210
Total liabilities
6,629,704
6,220,854
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 0 and 21,700 shares issued and outstanding
-
217
Series B; $1,000 stated value; 105,000 and 180,000 shares issued and outstanding
105,000
178,557
Series D; $1,000 stated value; 16,613 shares issued and outstanding
16,613
16,613
Common stock, $1 par value; 100,000,000 shares authorized; 46,243,345 and 42,423,870 shares issued and outstanding
46,243
42,424
Common stock, non-voting, $1 par value; 30,000,000 shares authorized; 13,188,206 and 15,316,794 shares issued and outstanding
13,188
15,317
Common stock issuable; 241,832 and 133,238 shares
3,930
3,119
Capital surplus
1,078,676
1,057,951
Accumulated deficit
(448,091
)
(709,153
)
Accumulated other comprehensive loss
(19,844
)
(23,640
)
Total shareholders' equity
795,715
581,405
Total liabilities and shareholders' equity
$
7,425,419
$
6,802,259
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
2013
2012
(dollars in thousands, taxable equivalent)
Average Balance
Interest
Avg. Rate
Average Balance
Interest
Avg. Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)
$
4,315,370
$
49,205
4.52
%
$
4,190,725
$
53,366
5.07
%
Taxable securities (3)
2,258,938
11,050
1.96
2,065,311
9,622
1.86
Tax-exempt securities (1)(3)
20,681
332
6.42
22,483
358
6.37
Federal funds sold and other interest-earning assets
227,622
1,108
1.95
203,090
1,104
2.17
Total interest-earning assets
6,822,611
61,695
3.59
6,481,609
64,450
3.96
Non-interest-earning assets:
Allowance for loan losses
(81,335
)
(112,846
)
Cash and due from banks
61,083
54,714
Premises and equipment
165,286
169,967
Other assets (3)
402,328
184,398
Total assets
$
7,369,973
$
6,777,842
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW
$
1,372,367
473
.14
$
1,261,796
462
.15
Money market
1,367,589
569
.17
1,200,701
617
.20
Savings
250,418
24
.04
224,624
38
.07
Time less than $100,000
907,042
1,164
.51
1,082,761
1,982
.73
Time greater than $100,000
604,490
1,029
.68
715,902
1,673
.93
Brokered time deposits
271,490
(600
)
(.88
)
135,708
(97
)
(.28
)
Total interest-bearing deposits
4,773,396
2,659
.22
4,621,492
4,675
.40
Federal funds purchased and other borrowings
54,839
508
3.68
67,403
524
3.09
Federal Home Loan Bank advances
6,647
3
.18
39,092
25
.25
Long-term debt
129,865
2,646
8.08
149,564
3,082
8.20
Total borrowed funds
191,351
3,157
6.55
256,059
3,631
5.64
Total interest-bearing liabilities
4,964,747
5,816
.46
4,877,551
8,306
.68
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,416,483
1,251,327
Other liabilities
132,557
63,785
Total liabilities
6,513,787
6,192,663
Shareholders' equity
856,186
585,179
Total liabilities and shareholders' equity
$
7,369,973
$
6,777,842
Net interest revenue
$
55,879
$
56,144
Net interest-rate spread
3.13
%
3.28
%
Net interest margin (4)
3.26
%
3.45
%
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized losses of $6.33 million in 2013 and pretax unrealized gains of $22.2 million in 2012 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
2013
2012
(dollars in thousands, taxable equivalent)
Average Balance
Interest
Avg. Rate
Average Balance
Interest
Avg. Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)
$
4,254,159
$
201,278
4.73
%
$
4,165,520
$
217,705
5.23
%
Taxable securities (3)
2,169,024
40,331
1.86
2,065,162
43,657
2.11
Tax-exempt securities (1)(3)
21,228
1,354
6.38
23,759
1,565
6.59
Federal funds sold and other interest-earning assets
204,303
4,360
2.13
292,857
4,740
1.62
Total interest-earning assets
6,648,714
247,323
3.72
6,547,298
267,667
4.09
Non-interest-earning assets:
Allowance for loan losses
(95,411
)
(114,647
)
Cash and due from banks
63,174
53,247
Premises and equipment
167,424
172,544
Other assets (3)
290,098
206,609
Total assets
$
7,073,999
$
6,865,051
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW
$
1,285,842
1,759
.14
$
1,293,510
2,049
.16
Money market
1,315,385
2,210
.17
1,140,354
2,518
.22
Savings
244,725
133
.05
216,880
150
.07
Time less than $100,000
974,470
5,850
.60
1,170,202
9,788
.84
Time greater than $100,000
654,102
5,115
.78
766,411
8,027
1.05
Brokered time deposits
219,215
(501
)
(.23
)
155,902
1,282
.82
Total interest-bearing deposits
4,693,739
14,566
.31
4,743,259
23,814
.50
Federal funds purchased and other borrowings
66,561
2,071
3.11
80,593
2,987
3.71
Federal Home Loan Bank advances
32,604
68
.21
124,771
907
.73
Long-term debt
131,081
10,977
8.37
127,623
10,201
7.99
Total borrowed funds
230,246
13,116
5.70
332,987
14,095
4.23
Total interest-bearing liabilities
4,923,985
27,682
.56
5,076,246
37,909
.75
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,333,199
1,142,236
Other liabilities
84,506
64,986
Total liabilities
6,341,690
6,283,468
Shareholders' equity
732,309
581,583
Total liabilities and shareholders' equity
$
7,073,999
$
6,865,051
Net interest revenue
$
219,641
$
229,758
Net interest-rate spread
3.16
%
3.34
%
Net interest margin (4)
3.30
%
3.51
%
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $4.36 million in 2013 and pretax unrealized gains of $23.6 million in 2012 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
United Community Banks, Inc. is a financial holding company for United Community Bank (the Bank). It provides a range of financial products and services to the commercial, retail, governmental, educational, energy, health care and real estate sectors. This includes a variety of deposit products, secured and unsecured loans, mortgage loans, payment and commerce solutions, equipment finance services, wealth management, trust services, private banking, investment advisory services, insurance services, and other related financial services. These products and services are delivered through a variety of channels including its branches, other offices, the Internet, and mobile applications. Its deposit products include checking accounts, savings accounts, money market accounts and other deposit accounts. Its investment portfolio includes residential and commercial mortgage-backed securities, asset-backed securities, United States agency and municipal obligations.