EX-99.1 2 ex99-1.htm EXHIBIT 99.1

Exhibit 99.1


For Immediate Release

 

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

 

 

UNITED COMMUNITY BANKS, INC. REPORTS

EARNINGS OF $15.4 MILLION FOR FIRST QUARTER 2014

 

  • Earnings per diluted share of 25 cents, up 14 percent from fourth quarter
  • Loans up $27 million, or 2 percent annualized
  • Core transaction deposits up $135 million, or 16 percent annualized
  • All preferred stock redeemed
  • All capital ratios remain strong

 

 

BLAIRSVILLE, GA – April 24, 2014 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported net income of $15.4 million, or 25 cents per diluted share, for the first quarter of 2014. Earnings per share were up 14 percent from the fourth quarter, and 67 percent from the first quarter of 2013, reflecting a reduction in preferred stock dividends, reduced operating costs and a lower provision for loan losses.

 

“I am pleased with our first quarter progress and our outlook for the balance of 2014,” said Jimmy Tallent, president and chief executive officer. “We achieved steady loan growth and strong deposit growth, while controlling expenses.

 

“I am especially pleased that we redeemed the remaining $122 million in preferred stock, completing the final phase of our TARP and other preferred stock redemptions during the first quarter,” Tallent continued. “In total we redeemed $197 million in preferred stock, including $75 million in the fourth quarter, without issuing common equity that would have been dilutive to shareholders.

 

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“The elimination of expensive preferred stock dividends had a positive impact on first quarter per share results,” Tallent added. “Longer-term, it will benefit our performance and the ability to execute our strategic plan.”

 

The first quarter provision for credit losses was $2.5 million, down $500,000 from the fourth quarter and down $8.5 million from the first quarter of 2013. First quarter net charge-offs were $4.04 million, compared with $4.44 million in the fourth quarter and $12.4 million a year ago. Nonperforming assets at quarter-end were $30.8 million, representing .42 percent of total assets. This was down slightly from the fourth quarter and down significantly from $112.7 million, or 1.65 percent of total assets, in the first quarter of 2013.

 

First quarter taxable equivalent net interest revenue totaled $54.2 million, down $1.71 million from the fourth quarter and down $405,000 from the first quarter of 2013. The first quarter taxable equivalent net interest margin was 3.21 percent, down five basis points from the fourth quarter and down 16 basis points from a year ago.

 

“The decline in net interest revenue was related primarily to two fewer days of interest accruals in the first quarter,” said Tallent. “Competitive loan pricing pressures continue, and we are 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, 39 percent of our investment portfolio consists of floating-rate securities, compared with 41 percent at year-end 2013 and 34 percent in the first quarter of 2013.”

 

First quarter fee revenue totaled $12.2 million, down $1.34 million from the fourth quarter and $735,000 from a year earlier, primarily due to lower mortgage fees and lower customer swap fees in other fee revenue. Additionally, fourth quarter fee revenue included the recognition of $300,000 in gains on mutual fund investments. First quarter mortgage fees were down $359,000 from the fourth quarter and down $1.3 million from a year ago, reflecting slower mortgage refinancing activity related to rising long-term interest rates. Closed mortgage loans totaled $46 million in the first quarter, compared with $55.5 million in the fourth quarter and $70 million in the first quarter of 2013.

 

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Operating expenses, excluding foreclosed property costs, were $38.9 million in the first quarter compared to $41.4 million in the fourth quarter of 2013 and $41.4 million a year ago. Expenses decreased in every category from fourth quarter totals, reflecting successful efforts to control operating costs. The most significant quarter-to-quarter decreases were $675,000 in professional fees and $451,000 in FDIC assessments and other regulatory charges, reflecting United’s improved credit quality. Salaries and employee benefits decreased $421,000, in part reflecting incentive compensation accrued in the fourth quarter for achievement of the 2013 performance targets.

 

Foreclosed property costs were $116,000 in the first quarter compared to $191,000 in the fourth quarter and $2.33 million a year ago. These costs have remained lower following the accelerated sales of classified assets in the second quarter of 2013.

 

On March 31, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.1 percent; Total Risk-Based of 12.3 percent; Tier 1 Common Risk-Based of 10.0 percent; Tier 1 Leverage of 8.0 percent; and Tangible Equity-to-Assets of 9.5 percent.

 

“We made good progress in the first quarter,” Tallent said. “A year ago our focus was resolving legacy credit-related problems, a major undertaking that has been completed. Other challenges have remained with regard to interest rates and the economic environment. But our team has kept expenses down and strengthened the business pipeline, and we have strategically added people and initiatives to drive revenue growth. Of particular note are the additions of senior talent to lead our Tennessee region, our specialized lending group, and our structured finance area. I believe we are on track to achieve our business targets and financial goals for the year.”

 

Conference Call

United will hold a conference call today, Thursday, April 24, 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 24926399. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of United’s website at www.ucbi.com.

 

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About United Community Banks, Inc.

United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.4 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 102 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking services including mortgage, advisory and treasury management products. United Community Bank is consistently recognized for its outstanding customer service by national survey organizations. Additional information about the company and the bank's full range of products and services can be found 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 2013 Annual Report on Form 10-K 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.

 

# # #

 

4
 

                                               
UNITED COMMUNITY BANKS, INC.
  
Financial Highlights
  
Selected Financial Information
  
                                     
 
                                
First
  
   
2014
    
2013
    
Quarter
  
(in thousands, except per share
  
First
    
Fourth
    
Third
    
Second
    
First
     2014-2013  
data; taxable equivalent)
  
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Change
  
INCOME SUMMARY
                                    
Interest revenue
   $ 60,495     $ 61,695     $ 61,426     $ 62,088     $ 62,114        
Interest expense
     6,326       5,816       7,169       7,157       7,540        
Net interest revenue
     54,169       55,879       54,257       54,931       54,574     (1 )%
Provision for credit losses
     2,500       3,000       3,000       48,500       11,000        
Fee revenue
     12,176       13,519       14,225       15,943       12,911     (6 )
Total revenue
     63,845       66,398       65,482       22,374       56,485        
Operating expenses
     39,050       41,614       40,097       48,823       43,770     (11 )
Income (loss) before income taxes
     24,795       24,784       25,385       (26,449 )     12,715     95  
Income tax expense (benefit)
     9,395       8,873       9,885       (256,413 )     950        
Net income
     15,400       15,911       15,500       229,964       11,765     31  
Preferred dividends and discount accretion
     439       2,912       3,059       3,055       3,052        
Net income available to common shareholders
   $ 14,961     $ 12,999     $ 12,441     $ 226,909     $ 8,713     72  
                                               
PERFORMANCE MEASURES
                                              
Per common share:
                                              
Diluted income
   $ .25     $ .22     $ .21     $ 3.90     $ .15     67  
Book value
     11.66       11.30       10.99       10.90       6.85     70  
Tangible book value (2)
     11.63       11.26       10.95       10.82       6.76     72  
                                               
Key performance ratios:
                                              
Return on common equity (1)(3)
     8.64 %     7.52 %     7.38 %     197.22
%
     8.51 %      
Return on assets (3)
     .85       .86       .86       13.34       .70        
Net interest margin (3)
     3.21       3.26       3.26       3.33       3.37        
Efficiency ratio
     59.05       60.02       58.55       68.89       64.97        
Equity to assets
     9.52       11.62       11.80       11.57 (4)     8.60        
Tangible equity to assets (2)
     9.50       11.59       11.76       11.53 (4)     8.53        
Tangible common equity to assets (2)
     9.22       8.99       9.02       8.79 (4)     5.66        
Tangible common equity to risk-weighted assets (2)
     13.57       13.17       13.34       13.16       8.45        
                                               
ASSET QUALITY *
                                              
Non-performing loans
   $ 25,250     $ 26,819     $ 26,088     $ 27,864     $ 96,006        
Foreclosed properties
     5,594       4,221       4,467       3,936       16,734        
Total non-performing assets (NPAs)
     30,844       31,040       30,555       31,800       112,740        
Allowance for loan losses
     75,223       76,762       80,372       81,845       105,753        
Net charge-offs
     4,039       4,445       4,473       72,408       12,384        
Allowance for loan losses to loans
     1.73 %     1.77 %     1.88 %     1.95
%
     2.52
%
  
 
  
Net charge-offs to average loans (3)
     .38       .41       .42       6.87       1.21        
NPAs to loans and foreclosed properties
     .71       .72       .72       .76       2.68        
NPAs to total assets
     .42       .42       .42       .44       1.65        
 
                                              
AVERAGE BALANCES ($ in millions)
                                              
Loans
   $ 4,356     $ 4,315     $ 4,250     $ 4,253     $ 4,197     4  
Investment securities
     2,320       2,280       2,178       2,161       2,141     8  
Earning assets
     6,827       6,823       6,615       6,608       6,547     4  
Total assets
     7,384       7,370       7,170       6,915       6,834     8  
Deposits
     6,197       6,190       5,987       5,983       5,946     4  
Shareholders’ equity
     703       856       846       636       588     20  
Common shares - basic (thousands)
     60,059       59,923       59,100       58,141       58,081        
Common shares - diluted (thousands)
     60,061       59,925       59,202       58,141       58,081        
                                               
AT PERIOD END ($ in millions)
                                              
Loans *
   $ 4,356     $ 4,329     $ 4,267     $ 4,189     $ 4,194     4  
Investment securities
     2,302       2,312       2,169       2,152       2,141     8  
Total assets
     7,398       7,425       7,243       7,163       6,849     8  
Deposits
     6,248       6,202       6,113       6,012       6,026     4  
Shareholders’ equity
     704       796       852       829       592     19  
Common shares outstanding (thousands)
     60,092       59,432       59,412       57,831       57,767        
 
(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.
  
Non-GAAP Performance Measures Reconciliation
  
Selected Financial Information
  
 
                              
   
2014
    
2013
  
(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
   $ 60,495     $ 61,695     $ 61,426     $ 62,088     $ 62,114  
Taxable equivalent adjustment
     (357 )     (380 )     (370 )     (368 )     (365 )
Interest revenue (GAAP)
   $ 60,138     $ 61,315     $ 61,056     $ 61,720     $ 61,749  
                                         
Net interest revenue reconciliation
                                        
Net interest revenue - taxable equivalent
   $ 54,169     $ 55,879     $ 54,257     $ 54,931     $ 54,574  
Taxable equivalent adjustment
     (357 )     (380 )     (370 )     (368 )     (365 )
Net interest revenue (GAAP)
   $ 53,812     $ 55,499     $ 53,887     $ 54,563     $ 54,209  
                                         
Total revenue reconciliation
                                        
Total operating revenue
   $ 63,845     $ 66,398     $ 65,482     $ 22,374     $ 56,485  
Taxable equivalent adjustment
     (357 )     (380 )     (370 )     (368 )     (365 )
Total revenue (GAAP)
   $ 63,488     $ 66,018     $ 65,112     $ 22,006     $ 56,120  
                                         
Income (loss) before taxes reconciliation
                                        
Income (loss) before taxes
   $ 24,795     $ 24,784     $ 25,385     $ (26,449 )   $ 12,715  
Taxable equivalent adjustment
     (357 )     (380 )     (370 )     (368 )     (365 )
Income (loss) before taxes (GAAP)
   $ 24,438     $ 24,404     $ 25,015     $ (26,817 )   $ 12,350  
                                         
Income tax expense (benefit) reconciliation
                                        
Income tax expense (benefit)
   $ 9,395     $ 8,873     $ 9,885     $ (256,413 )   $ 950  
Taxable equivalent adjustment
     (357 )     (380 )     (370 )     (368 )     (365 )
Income tax expense (benefit) (GAAP)
   $ 9,038     $ 8,493     $ 9,515     $ (256,781 )   $ 585  
                                         
Book value per common share reconciliation
                                        
Tangible book value per common share
   $ 11.63     $ 11.26     $ 10.95     $ 10.82     $ 6.76  
Effect of goodwill and other intangibles
     .03       .04       .04       .08       .09  
Book value per common share (GAAP)
   $ 11.66     $ 11.30     $ 10.99     $ 10.90     $ 6.85  
                                         
Average equity to assets reconciliation
                                        
Tangible common equity to assets
     9.22 %     8.99 %     9.02 %     8.79 %     5.66 %
Effect of preferred equity
     .28       2.60       2.74       2.74       2.87  
    Tangible equity to assets
     9.50       11.59       11.76       11.53       8.53  
Effect of goodwill and other intangibles
     .02       .03       .04       .04       .07  
Equity to assets (GAAP)
     9.52 %     11.62 %     11.80 %     11.57 %     8.60 %
                                         
Tangible common equity to risk-weighted assets reconciliation
                                  
Tangible common equity to risk-weighted assets
     13.57 %     13.17 %     13.34 %     13.16 %     8.45 %
Effect of other comprehensive income
     .36       .39       .49       .29       .49  
Effect of deferred tax limitation
     (3.91 )     (4.25 )     (4.72 )     (4.99 )     -  
Effect of trust preferred
     1.03       1.04       1.09       1.11       1.15  
Effect of preferred equity
     -       2.38       4.01       4.11       4.22  
Tier I capital ratio (Regulatory)
     11.05 %     12.73 %     14.21 %     13.68 %     14.31 %
 
 
 

 

 
                                                         
UNITED COMMUNITY BANKS, INC.
  
Financial Highlights
  
Loan Portfolio Composition at Period-End (1)
  
                                           
   
2014
    
2013
    
Linked 
    
Year over
 
   
First
    
Fourth
    
Third
    
Second
    
First
     Quarter     Year  
(in millions)
  
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Quarter
     Change     Change  
LOANS BY CATEGORY
                                          
Owner occupied commercial RE
   $ 1,142     $ 1,134     $ 1,129     $ 1,119     $ 1,130     $ 8     $ 12  
Income producing commercial RE
     624       623       614       629       674       1       (50 )
Commercial & industrial
     495       472       457       437       454       23       41  
Commercial construction
     148       149       137       133       152       (1 )     (4 )
Total commercial
     2,409       2,378       2,337       2,318       2,410       31       (1 )
Residential mortgage
     866       875       888       876       850       (9 )     16  
Home equity lines of credit
     447       441       421       402       396       6       51  
Residential construction
     318       328       318       332       372       (10 )     (54 )
Consumer installment
     316       307       303       261       166       9       150  
Total loans
   $ 4,356     $ 4,329     $ 4,267     $ 4,189     $ 4,194       27       162  
                                                         
LOANS BY MARKET
                                                        
North Georgia
   $ 1,205     $ 1,240     $ 1,262     $ 1,265     $ 1,363       (35 )     (158 )
Atlanta MSA
     1,290       1,275       1,246       1,227       1,262       15       28  
North Carolina
     563       572       575       576       575       (9 )     (12 )
Coastal Georgia
     425       423       421       397       398       2       27  
Gainesville MSA
     262       255       253       256       259       7       3  
East Tennessee
     272       280       277       282       282       (8 )     (10 )
South Carolina / Corporate
     131       88       47       34       -       43       131  
Other (2)
     208       196       186       152       55       12       153  
Total loans
   $ 4,356     $ 4,329     $ 4,267     $ 4,189     $ 4,194       27       162  
                                                         
RESIDENTIAL CONSTRUCTION
                                                  
Dirt loans
                                                        
Acquisition & development
   $ 37     $ 39     $ 40     $ 42     $ 57       (2 )     (20 )
Land loans
     37       38       35       36       42       (1 )     (5 )
Lot loans
     159       166       167       173       188       (7 )     (29 )
Total
     233       243       242       251       287       (10 )     (54 )
                                                         
House loans
                                                        
Spec
     19       23       30       34       40       (4 )     (21 )
Sold
     66       62       46       47       45       4       21  
Total
     85       85       76       81       85       -       -  
Total residential construction
   $ 318     $ 328     $ 318     $ 332     $ 372       (10 )     (54 )
                                                         
(1) Excludes total loans of $19.3 million, $20.3 million, $23.3 million, $25.7 million and $28.3 million as of March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, 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
Credit Quality (1)
                                                                         
   
First Quarter 2014
    
Fourth Quarter 2013
    
Third Quarter 2013
  
   
Non-performing
    
Foreclosed
     Total    
Non-performing
    
Foreclosed
    
 Total
    
Non-performing
    
Foreclosed
    
 Total
  
(in thousands)
  
Loans
    
Properties
    
NPAs
    
Loans
    
Properties
    
NPAs
    
Loans
    
Properties
    
NPAs
  
NONPERFORMING ASSETS BY CATEGORY
                                                          
Owner occupied CRE
   $ 3,868     $ 1,167     $ 5,035     $ 5,822     $ 832     $ 6,654     $ 6,358     $ 591     $ 6,949  
Income producing CRE
     1,278       1,645       2,923       2,518       -       2,518       1,657       139       1,796  
Commercial & industrial
     822       -       822       427       -       427       609       -       609  
Commercial construction
     479       -       479       361       -       361       343       376       719  
     Total commercial
     6,447       2,812       9,259       9,128       832       9,960       8,967       1,106       10,073  
Residential mortgage
     13,307       2,146       15,453       11,730       2,684       14,414       11,335       1,679       13,014  
Home equity lines of credit
     1,106       362       1,468       1,448       389       1,837       1,169       475       1,644  
Residential construction
     3,805       274       4,079       4,264       316       4,580       4,097       1,207       5,304  
Consumer installment
     585       -       585       249       -       249       520       -       520  
     Total NPAs
   $ 25,250     $ 5,594     $ 30,844     $ 26,819     $ 4,221     $ 31,040     $ 26,088     $ 4,467     $ 30,555  
     Balance as a % of
                                                                        
          Unpaid Principal
     65.8 %     53.9 %     63.2 %     65.3 %     44.5 %     61.4 %     61.6 %     41.5 %     57.6 %
                                                                         
NONPERFORMING ASSETS BY MARKET
                                                          
North Georgia
   $ 12,166     $ 2,058     $ 14,224     $ 12,352     $ 2,494     $ 14,846     $ 13,652     $ 1,726     $ 15,378  
Atlanta MSA
     2,916       904       3,820       2,830       684       3,514       3,096       1,026       4,122  
North Carolina
     6,501       866       7,367       6,567       683       7,250       5,680       762       6,442  
Coastal Georgia
     800       1,607       2,407       2,342       173       2,515       995       928       1,923  
Gainesville MSA
     1,145       -       1,145       928       -       928       1,036       -       1,036  
East Tennessee
     1,428       159       1,587       1,800       187       1,987       1,629       25       1,654  
South Carolina / Corporate
     -       -       -       -       -       -       -       -       -  
Other (3)
     294       -       294       -       -       -       -       -       -  
     Total NPAs
   $ 25,250     $ 5,594     $ 30,844     $ 26,819     $ 4,221     $ 31,040     $ 26,088     $ 4,467     $ 30,555  
                                                                         
NONPERFORMING ASSETS ACTIVITY
                                                          
Beginning Balance
   $ 26,819     $ 4,221     $ 31,040     $ 26,088     $ 4,467     $ 30,555     $ 27,864     $ 3,936     $ 31,800  
Loans placed on non-accrual
     9,303       -       9,303       11,043       -       11,043       9,959       -       9,959  
Payments received
     (1,666 )     -       (1,666 )     (1,688 )     -       (1,688 )     (3,601 )     -       (3,601 )
Loan charge-offs
     (4,839 )     -       (4,839 )     (4,621 )     -       (4,621 )     (5,395 )     -       (5,395 )
Foreclosures
     (4,367 )     4,367       -       (4,003 )     4,003       -       (2,739 )     2,739       -  
Capitalized costs
     -       -       -       -       -       -       -       7       7  
Property sales
     -       (3,238 )     (3,238 )     -       (4,684 )     (4,684 )     -       (2,534 )     (2,534 )
Write downs
     -       (277 )     (277 )     -       (326 )     (326 )     -       (329 )     (329 )
Net gains (losses) on sales
     -       521       521       -       761       761       -       648       648  
     Ending Balance
   $ 25,250     $ 5,594     $ 30,844     $ 26,819     $ 4,221     $ 31,040     $ 26,088     $ 4,467     $ 30,555  
 
                                           
    First Quarter 2014     Fourth Quarter 2013     Third Quarter 2013
           
Net Charge-
            
Net Charge-
            
Net Charge-
  
           
Offs to
            
Offs to
            
Offs to
  
      Net    
Average
       Net    
Average
      
 Net
    
Average
  
(in thousands)
   Charge-Offs    
Loans (2)
       Charge-Offs    
Loans (2)
       Charge-Offs    
Loans (2)
  
NET CHARGE-OFFS BY CATEGORY
                                          
Owner occupied CRE
   $
         278
    
              .10
%
   $
  1,638
    
             .57
%
   $
 1,641
    
             .58
%
Income producing CRE
    
   205
    
              .13
      
       320
    
              .21
      
     216
    
              .14
  
Commercial & industrial
    
 421
    
             .35
      
(149
 )   
            (.13)
      
   136
    
              .12
  
Commercial construction
    
  -
    
                -
      
  (9
 )   
           (.02)
      
      133
    
             .39
  
     Total commercial
    
   904
    
              .15
      
    1,800
    
             .30
      
      2,126
    
             .36
  
Residential mortgage
    
     1,515
    
              .71
      
   1,426
    
             .64
      
         693
    
              .31
  
Home equity lines of credit
    
   993
    
             .90
      
    417
    
             .38
      
        382
    
             .37
  
Residential construction
    
   212
    
             .27
      
      327
    
             .40
      
    1,072
    
             1.31
  
Consumer installment
    
    415
    
             .54
      
   475
    
             .62
      
        200
    
             .28
  
     Total
   $
4,039
    
             .38
     $
 4,445
    
              .41
     $
 4,473
    
             .42
  
                                           
                                           
NET CHARGE-OFFS BY MARKET
                                
North Georgia
   $
  1,272
    
             .42
%
   $
 1,603
    
              .51
%
   $
 2,090
    
             .66
%
Atlanta MSA
    
       1,232
    
             .39
      
    636
    
             .20
      
       1,013
    
             .33
  
North Carolina
    
  577
    
              .41
      
     1,104
    
             .76
      
   704
    
             .49
  
Coastal Georgia
    
512
    
             .49
      
       345
    
             .33
      
 139
    
              .14
  
Gainesville MSA
    
  141
    
             .22
      
         346
    
             .54
      
  97
    
              .15
  
East Tennessee
    
239
    
             .35
      
        323
    
             .46
      
          359
    
              .51
  
South Carolina / Corporate
    
  -
    
                -
      
        -
    
                -
      
        -
    
                -
  
Other (3)
    
      66
    
              .14
      
      88
    
             .20
      
       71
    
              .17
  
     Total
   $
  4,039
    
             .38
     $
   4,445
    
              .41
     $
4,473
    
             .42
  
 
(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
  
   
March 31,
  
(in thousands, except per share data)
  
2014
    
2013
  
             
Interest revenue:
            
Loans, including fees
   $ 47,688     $ 50,935  
Investment securities, including tax exempt of $188 and $212
     11,607       9,944  
Deposits in banks and short-term investments
     843       870  
Total interest revenue
     60,138       61,749  
                 
Interest expense:
                
Deposits:
                
NOW
     440       454  
Money market
     563       562  
Savings
     20       36  
Time
     1,771       3,291  
Total deposit interest expense
     2,794       4,343  
Short-term borrowings
     840       516  
Federal Home Loan Bank advances
     58       19  
Long-term debt
     2,634       2,662  
Total interest expense
     6,326       7,540  
Net interest revenue
     53,812       54,209  
Provision for credit losses
     2,500       11,000  
Net interest revenue after provision for credit losses
     51,312       43,209  
                 
Fee revenue:
                
Service charges and fees
     7,898       7,403  
Mortgage loan and other related fees
     1,354       2,655  
Brokerage fees
     1,177       767  
Securities gains, net
     217       116  
Other
     1,530       1,970  
Total fee revenue
     12,176       12,911  
Total revenue
     63,488       56,120  
                 
Operating expenses:
                
Salaries and employee benefits
     24,396       23,592  
Communications and equipment
     3,239       3,046  
Occupancy
     3,378       3,367  
Advertising and public relations
     626       938  
Postage, printing and supplies
     776       863  
Professional fees
     1,427       2,366  
Foreclosed property
     116       2,333  
FDIC assessments and other regulatory charges
     1,353       2,505  
Amortization of intangibles
     387       705  
Other
     3,352       4,055  
Total operating expenses
     39,050       43,770  
    Net income before income taxes
     24,438       12,350  
Income tax expense
     9,038       585  
Net income
     15,400       11,765  
Preferred stock dividends and discount accretion
     439       3,052  
Net income available to common shareholders
   $ 14,961     $ 8,713  
                 
Earnings per common share
                
     Basic
   $ .25     $ .15  
     Diluted
     .25       .15  
Weighted average common shares outstanding
                
     Basic
     60,059       58,081  
     Diluted
     60,061       58,081  
 
 
 

 

 
UNITED COMMUNITY BANKS, INC.
                  
Consolidated Balance Sheet (Unaudited)
                  
   
March 31,
    
December 31,
    
March 31,
  
(in thousands, except share and per share data)
  
2014
    
2013
    
2013
  
                   
ASSETS
                  
Cash and due from banks
   $ 52,813     $ 71,230     $ 57,638  
Interest-bearing deposits in banks
     110,529       119,669       107,390  
Short-term investments
     49,999       37,999       82,000  
Cash and cash equivalents
     213,341       228,898       247,028  
Securities available for sale
     1,837,676       1,832,217       1,909,426  
Securities held to maturity (fair value $473,136, $485,585 and $247,087)
     464,697       479,742       231,087  
Mortgage loans held for sale
     10,933       10,319       18,290  
Loans, net of unearned income
     4,355,708       4,329,266       4,193,560  
Less allowance for loan losses
     (75,223 )     (76,762 )     (105,753 )
Loans, net
     4,280,485       4,252,504       4,087,807  
Assets covered by loss sharing agreements with the FDIC
     21,353       22,882       42,096  
Premises and equipment, net
     161,540       163,589       168,036  
Bank owned life insurance
     80,790       80,670       82,114  
Accrued interest receivable
     18,572       19,598       18,302  
Intangible assets
     3,093       3,480       4,805  
Foreclosed property
     5,594       4,221       16,734  
Net deferred tax asset
     243,683       258,518       -  
Derivative financial instruments
     21,563       23,833       601  
Other assets
     34,917       44,948       23,042  
Total assets
   $ 7,398,237     $ 7,425,419     $ 6,849,368  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Liabilities:
                        
Deposits:
                        
Demand
   $ 1,471,781     $ 1,388,512     $ 1,298,425  
NOW
     1,392,863       1,427,939       1,281,454  
Money market
     1,235,429       1,227,575       1,165,836  
Savings
     270,910       251,125       243,347  
Time:
                        
Less than $100,000
     833,188       892,961       1,019,396  
Greater than $100,000
     572,889       588,689       685,174  
Brokered
     470,481       424,704       332,220  
                     Total deposits
     6,247,541       6,201,505       6,025,852  
Short-term borrowings
     123,075       53,241       51,999  
Federal Home Loan Bank advances
     50,125       120,125       125  
Long-term debt
     129,865       129,865       124,825  
Derivative financial instruments
     42,309       46,232       14,556  
Unsettled securities purchases
     63,999       29,562       -  
Accrued expenses and other liabilities
     37,593       49,174       39,793  
Total liabilities
     6,694,507       6,629,704       6,257,150  
Shareholders’ equity:
                        
    Preferred stock, $1 par value; 10,000,000 shares authorized;
                        
         Series A; $10 stated value; 0, 0 and 21,700 shares issued and outstanding
     -       -       217  
         Series B; $1,000 stated value; 0, 105,000 and 180,000 shares issued and outstanding
     -       105,000       178,937  
         Series D; $1,000 stated value; 0, 16,613 and 16,613 shares issued and outstanding
     -       16,613       16,613  
    Common stock, $1 par value; 100,000,000 shares authorized;
                        
        50,011,094, 46,243,345 and 43,063,761 shares issued and outstanding
     50,011       46,243       43,064  
    Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
                        
        10,080,787, 13,188,206 and 14,703,636 shares issued and outstanding
     10,081       13,188       14,704  
    Common stock issuable; 237,763, 241,832 and 133,469 shares
     3,840       3,930       2,726  
    Capital surplus
     1,091,696       1,078,676       1,059,222  
    Accumulated deficit
     (433,130 )     (448,091 )     (700,440 )
    Accumulated other comprehensive loss
     (18,768 )     (19,844 )     (22,825 )
        Total shareholders’ equity
     703,730       795,715       592,218  
        Total liabilities and shareholders’ equity
   $ 7,398,237     $ 7,425,419     $ 6,849,368  
 
 
 

 

 
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
 
                                     
    2014     2013  
   
Average
          
Avg.
    
Average
          
Avg.
  
(dollars in thousands, taxable equivalent)
  
Balance
    
Interest
    
Rate
    
Balance
    
Interest
    
Rate
  
Assets:
                                    
Interest-earning assets:
                                    
Loans, net of unearned income (1)(2)
   $ 4,355,572     $ 47,868     4.46 %   $ 4,196,757     $ 51,000     4.93 %
Taxable securities (3)
     2,300,316       11,419     1.99       2,119,085       9,732     1.84  
Tax-exempt securities (1)(3)
     20,173       308     6.11       21,733       347     6.39  
Federal funds sold and other interest-earning assets
     150,841       900     2.39       209,674       1,035     1.97  
                                             
Total interest-earning assets
     6,826,902       60,495     3.58       6,547,249       62,114     3.84  
Non-interest-earning assets:
                                            
Allowance for loan losses
     (77,491 )                   (110,941 )              
Cash and due from banks
     62,054                     64,294                
Premises and equipment
     162,788                     169,280                
Other assets (3)
     410,175                     164,250                
Total assets
   $ 7,384,428                   $ 6,834,132                
                                             
Liabilities and Shareholders’ Equity:
                                            
Interest-bearing liabilities:
                                            
Interest-bearing deposits:
                                            
NOW
   $ 1,416,119       440     .13     $ 1,303,308       454     .14  
Money market
     1,376,993       563     .17       1,257,409       562     .18  
Savings
     259,548       20     .03       234,110       36     .06  
Time less than $100,000
     877,695       1,013     .47       1,039,707       1,749     .68  
Time greater than $100,000
     578,190       918     .64       694,553       1,477     .86  
Brokered time deposits
     287,979       (160 )   (.23 )     175,128       65     .15  
Total interest-bearing deposits
     4,796,524       2,794     .24       4,704,215       4,343     .37  
                                             
Federal funds purchased and other borrowings
     112,583       840     3.03       72,157       516     2.90  
Federal Home Loan Bank advances
     125,069       58     .19       33,069       19     .23  
Long-term debt
     129,865       2,634     8.23       124,816       2,662     8.65  
Total borrowed funds
     367,517       3,532     3.90       230,042       3,197     5.64  
                                             
Total interest-bearing liabilities
     5,164,041       6,326     .50       4,934,257       7,540     .62  
Non-interest-bearing liabilities:
                                            
Non-interest-bearing deposits
     1,400,619                     1,241,527                
Other liabilities
     116,667                     70,839                
Total liabilities
     6,681,327                     6,246,623                
Shareholders’ equity
     703,101                     587,509                
Total liabilities and shareholders’ equity
   $ 7,384,428                   $ 6,834,132                
                                             
Net interest revenue
           $ 54,169                   $ 54,574        
Net interest-rate spread
                   3.08 %                   3.22 %
                                             
Net interest margin (4)
                   3.21 %                   3.37 %
 
(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 $4.6 million in 2014 and pretax unrealized gains of $17.1 million in 2013 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.