- Operating earnings per diluted share of 33 cents, up 14 percent from first quarter of 2015
- Operating return on assets of 1.00 percent – compared to .94 percent a year ago
- Operating return on tangible common equity of 10.91 percent – up from 9.46 percent a year ago
- Loans up $111 million from the fourth quarter of 2015, or 7 percent annualized
- Core transaction deposits up $113 million from the fourth quarter of 2015, or 9 percent annualized
BLAIRSVILLE, Ga., April 27, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today reported first quarter results reflecting strong credit quality, capital management, profitability and growth. Net operating income was $23.9 million, or 33 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share, in the first quarter of 2015.
Net operating income and net operating income per diluted share exclude merger-related and other charges. Including those charges, first quarter 2016 net income was $22.3 million, or 31 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share in the first quarter of 2015.
At March 31, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.3 percent; Total Risk-Based of 12.3 percent; Common Equity Tier 1 Risk-Based of 11.3 percent; and, Tier 1 Leverage of 8.4 percent.
“Our first quarter results continue to demonstrate the growing potential of United and our focus on increasing returns to our shareholders. Our performance reflects our emphasis on maintaining a high-quality balance sheet, increasing profitability and generating growth,” said Jimmy Tallent, chairman and chief executive officer. “It underscores our ability to prudently grow our loan portfolio and high-quality, low-cost core deposits, maintain top-quartile credit quality, and expand fee revenue while maintaining operating expense discipline, and making strategic investments in technology, geographic market positioning, products and enhanced expertise.
“First quarter loan production was a solid $562 million,” Tallent added. “Loan growth was $111 million, or 7 percent annualized, in line with our 2016 target of a mid-to-upper-single-digit increase. Our community banks originated $347 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $145 million. Helping fund these loans was quarter-to-quarter core transaction deposit growth of $113 million, or 9 percent annualized. Core deposits comprise 90 percent of total deposits, one of the best ratios in the country.”
First quarter taxable-equivalent net interest revenue totaled $75.2 million, up $1.2 million from the fourth quarter of 2015 and up $17.6 million from the first quarter of 2015. This increase reflects strong loan and core deposit growth, and an increase in the net interest margin. The increase from the first quarter of 2015 also reflects net interest revenue from the Palmetto and First National Bank acquisitions.
The taxable-equivalent net interest margin of 3.41 percent reflected a seven basis point increase from the fourth quarter of 2015, and a 10 basis point increase from a year ago. The increase from the fourth quarter reflects higher yields on the loan and investment securities portfolios, offset slightly by a one basis point increase in the rate paid on interest-bearing liabilities. Yields on floating rate loans and investment securities benefited from the full quarterly impact of the Federal Reserve Bank’s December 2015 rate hike.
The first quarter provision for credit losses was negative $200,000 compared with positive provisions of $300,000 during the fourth quarter of 2015 and $1.8 million during the first quarter of 2015. In addition to continued strong credit quality and a low overall level of net charge-offs, the first quarter negative provision reflects an overall improvement in a number of our largest troubled debt restructurings and the related release of reserves assigned specifically to them.
“Our credit quality indicators are very favorable, and our outlook is for this to continue, which will result in driving down our allowance for loan losses requirement,” stated Tallent. “While we strive to maintain a conservative allowance for loan losses, our recent loss history and improving credit measures continue to require us to decrease our allowance each quarter.”
First quarter net charge-offs totaled $2.1 million compared with $1.3 million during the fourth quarter of 2015, and $2.6 million during the first quarter of 2015. Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 from the first and second quarters of 2015. Nonperforming assets were 0.28 percent of total assets at March 31, 2016, compared with 0.29 percent at December 31, 2015 and 0.26 percent a year ago.
First quarter fee revenue totaled $18.6 million, a decrease of $2.7 million from the fourth quarter of 2015. The decrease was mostly seasonal and primarily the result of a $1.4 million decline in service charges and fees, a $758,000 decline in gains from sales of SBA loans, and a $541,000 decline in other fee revenue. First quarter fee revenue increased $2.9 million from the first quarter of 2015, primarily due to acquisitions.
During the first quarter of 2016, sales of $13.0 million in SBA loans resulted in net gains of $1.2 million. This compares with sales of $25.1 million and net gains of $2.0 million during the fourth quarter of 2015, and sales of $13.0 million and net gains of $1.1 million during the first quarter of 2015.
Operating expenses, excluding merger-related and other charges, were $55.2 million in the first quarter of 2016. This compares to $56.4 million in the fourth quarter of 2015 and $43.1 million in the first quarter of 2015.
“The linked quarter decrease in operating expenses is primarily related to Palmetto cost savings, and is only part of the story,” commented Tallent. “What also is important to our future growth are the substantial investments we made during the quarter in talented revenue producers. To leverage the United brand and gain share in high-growth areas, during the first quarter we added eight new mortgage lenders in our metro markets. In our specialized lending areas, primarily in our SBA lending business we added 11 revenue producers. We also added three lenders in our loan production office in Charleston, South Carolina, and opened a new loan production office in Macon, Georgia.
“Consistent with this strategy, on April 4, 2016, we entered into a merger agreement with Tidelands Bancshares, Inc., the holding company for Tidelands Bank which is based in Mt. Pleasant, South Carolina,” Tallent said. “Tidelands Bank will merge into United Community Bank and operate under the United brand on the South Carolina coast, including Charleston, Hilton Head and Myrtle Beach.
“Following the opening of a loan production office in Charleston in the fourth quarter of 2015, this strategic purchase completes a two-step plan to launch and accelerate growth in attractive coastal South Carolina markets,” said Tallent. “The Tidelands agreement is expected to close in the third quarter and will be immediately accretive to operating earnings. I am excited to have Thomas Lyles and his team join the United family.
“In the first quarter we maintained strong momentum and, with our talented bankers at work, we expect to do so again in the second quarter and throughout the remainder of 2016,” Tallent said. “Our talented bankers are executing our plans as we maintain a high-quality balance sheet, increase profitability and generate growth.”
Conference Call
United will hold a conference call today, Wednesday, April 27, 2016, 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 79143447. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia, with $9.8 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast region’s largest full-service banks, operating 135 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 products, including mortgage, advisory, and treasury management. United Community Banks is consistently recognized for its outstanding customer service by respected national research firms. In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and again in 2016 was ranked among the top 100 on the Forbes’ list of America’s Best Banks. 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 2015 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.
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||||
First | |||||||||||||||||||||||||
2016 | 2015 | Quarter | |||||||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | 2016-2015 | |||||||||||||||||||
data; fully taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | |||||||||||||||||||
INCOME SUMMARY | |||||||||||||||||||||||||
Interest revenue (FTE) | $ | 80,991 | $ | 79,646 | $ | 71,120 | $ | 66,134 | $ | 62,909 | |||||||||||||||
Interest expense | 5,769 | 5,598 | 5,402 | 4,817 | 5,292 | ||||||||||||||||||||
Net interest revenue (FTE) | 75,222 | 74,048 | 65,718 | 61,317 | 57,617 | 31 | % | ||||||||||||||||||
Provision for credit losses | (200 | ) | 300 | 700 | 900 | 1,800 | |||||||||||||||||||
Fee revenue | 18,606 | 21,284 | 18,297 | 17,266 | 15,682 | 19 | |||||||||||||||||||
Total revenue (FTE) | 94,028 | 95,032 | 83,315 | 77,683 | 71,499 | 32 | |||||||||||||||||||
Expenses - operating (1) | 55,232 | 56,410 | 48,525 | 45,247 | 43,061 | 28 | |||||||||||||||||||
Income before income tax expense - (FTE) operating (1) | 38,796 | 38,622 | 34,790 | 32,436 | 28,438 | 36 | |||||||||||||||||||
Income tax expense - (FTE) operating (1) | 14,852 | 14,822 | 13,064 | 12,447 | 10,768 | 38 | |||||||||||||||||||
Net income - operating (1) | 23,944 | 23,800 | 21,726 | 19,989 | 17,670 | 36 | |||||||||||||||||||
Preferred dividends and discount accretion | 21 | 25 | 25 | 17 | - | ||||||||||||||||||||
Net income available to common shareholders - operating (1) | 23,923 | 23,775 | 21,701 | 19,972 | 17,670 | 35 | |||||||||||||||||||
Merger-related and other charges, net of income tax benefit | 1,649 | 5,592 | 3,839 | 2,176 | - | ||||||||||||||||||||
Net income available to common shareholders - GAAP | $ | 22,274 | $ | 18,183 | $ | 17,862 | $ | 17,796 | $ | 17,670 | 26 | ||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||||
Per common share: | |||||||||||||||||||||||||
Diluted income - operating (1) | $ | .33 | $ | .33 | $ | .33 | $ | .32 | $ | .29 | 14 | ||||||||||||||
Diluted income - GAAP | .31 | .25 | .27 | .28 | .29 | 7 | |||||||||||||||||||
Cash dividends declared | .07 | .06 | .06 | .05 | .05 | ||||||||||||||||||||
Book value | 14.35 | 14.02 | 13.95 | 12.95 | 12.58 | 14 | |||||||||||||||||||
Tangible book value (3) | 12.40 | 12.06 | 12.08 | 12.66 | 12.53 | (1 | ) | ||||||||||||||||||
Key performance ratios: | |||||||||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 10.91 | % | 10.87 | % | 10.29 | % | 10.20 | % | 9.46 | % | |||||||||||||||
Return on common equity - operating (1)(2)(4) | 9.20 | 9.18 | 9.54 | 9.90 | 9.34 | ||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 8.57 | 7.02 | 7.85 | 8.83 | 9.34 | ||||||||||||||||||||
Return on assets - operating (1)(4) | 1.00 | .99 | 1.00 | 1.00 | .94 | ||||||||||||||||||||
Return on assets - GAAP (4) | .93 | .76 | .82 | .89 | .94 | ||||||||||||||||||||
Dividend payout ratio - operating (1) | 21.21 | 18.18 | 18.18 | 15.63 | 17.24 | ||||||||||||||||||||
Dividend payout ratio - GAAP | 22.58 | 24.00 | 22.22 | 17.86 | 17.24 | ||||||||||||||||||||
Net interest margin (FTE) (4) | 3.41 | 3.34 | 3.26 | 3.30 | 3.31 | ||||||||||||||||||||
Efficiency ratio - operating (1) | 59.10 | 59.41 | 57.81 | 57.59 | 59.15 | ||||||||||||||||||||
Efficiency ratio - GAAP | 61.94 | 68.97 | 64.65 | 61.63 | 59.15 | ||||||||||||||||||||
Average equity to average assets | 10.72 | 10.68 | 10.39 | 10.05 | 9.86 | ||||||||||||||||||||
Average tangible equity to average assets (3) | 9.41 | 9.40 | 9.88 | 9.91 | 9.82 | ||||||||||||||||||||
Average tangible common equity to average assets (3) | 9.32 | 9.29 | 9.77 | 9.83 | 9.82 | ||||||||||||||||||||
Tangible common equity to risk-weighted assets (3)(5)(6) | 12.77 | 12.82 | 13.08 | 13.24 | 13.53 | ||||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||
Nonperforming loans | $ | 22,419 | $ | 22,653 | $ | 20,064 | $ | 18,805 | $ | 19,015 | 18 | ||||||||||||||
Foreclosed properties | 5,163 | 4,883 | 7,669 | 2,356 | 1,158 | 346 | |||||||||||||||||||
Total nonperforming assets (NPAs) | 27,582 | 27,536 | 27,733 | 21,161 | 20,173 | 37 | |||||||||||||||||||
Allowance for loan losses | 66,310 | 68,448 | 69,062 | 70,129 | 70,007 | (5 | ) | ||||||||||||||||||
Net charge-offs | 2,138 | 1,302 | 1,417 | 978 | 2,562 | (17 | ) | ||||||||||||||||||
Allowance for loan losses to loans | 1.09 | % | 1.14 | % | 1.15 | % | 1.36 | % | 1.46 | % | |||||||||||||||
Net charge-offs to average loans (4) | .14 | .09 | .10 | .08 | .22 | ||||||||||||||||||||
NPAs to loans and foreclosed properties | .45 | .46 | .46 | .41 | .42 | ||||||||||||||||||||
NPAs to total assets | .28 | .29 | .29 | .26 | .26 | ||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | |||||||||||||||||||||||||
Loans | $ | 6,004 | $ | 5,975 | $ | 5,457 | $ | 5,017 | $ | 4,725 | 27 | ||||||||||||||
Investment securities | 2,718 | 2,607 | 2,396 | 2,261 | 2,203 | 23 | |||||||||||||||||||
Earning assets | 8,876 | 8,792 | 8,009 | 7,444 | 7,070 | 26 | |||||||||||||||||||
Total assets | 9,634 | 9,558 | 8,634 | 8,017 | 7,617 | 26 | |||||||||||||||||||
Deposits | 7,947 | 8,028 | 7,135 | 6,669 | 6,369 | 25 | |||||||||||||||||||
Shareholders’ equity | 1,033 | 1,021 | 897 | 806 | 751 | 38 | |||||||||||||||||||
Common shares - basic (thousands) | 72,162 | 72,135 | 66,294 | 62,549 | 60,905 | 18 | |||||||||||||||||||
Common shares - diluted (thousands) | 72,166 | 72,140 | 66,300 | 62,553 | 60,909 | 18 | |||||||||||||||||||
AT PERIOD END ($ in millions) | |||||||||||||||||||||||||
Loans | $ | 6,106 | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | 28 | ||||||||||||||
Investment securities | 2,757 | 2,656 | 2,457 | 2,322 | 2,201 | 25 | |||||||||||||||||||
Total assets | 9,781 | 9,616 | 9,404 | 8,237 | 7,655 | 28 | |||||||||||||||||||
Deposits | 7,960 | 7,873 | 7,897 | 6,800 | 6,430 | 24 | |||||||||||||||||||
Shareholders’ equity | 1,034 | 1,018 | 1,013 | 827 | 764 | 35 | |||||||||||||||||||
Common shares outstanding (thousands) | 71,544 | 71,484 | 71,472 | 62,700 | 60,309 | 19 | |||||||||||||||||||
(1) Excludes merger-related charges and impairment losses on surplus bank property. (2) 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). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) All periods are calculated under Basel III rules, which became effective January 1, 2015. (6) First quarter 2016 ratio is preliminary. | |||||||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||
Non-GAAP Performance Measures Reconciliation | |||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(in thousands, except per share | First | Fourth | Third | Second | First | ||||||||||||||||
data; fully taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
Interest revenue reconciliation | |||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 80,991 | $ | 79,646 | $ | 71,120 | $ | 66,134 | $ | 62,909 | |||||||||||
Taxable equivalent adjustment | (270 | ) | (284 | ) | (292 | ) | (326 | ) | (375 | ) | |||||||||||
Interest revenue (GAAP) | $ | 80,721 | $ | 79,362 | $ | 70,828 | $ | 65,808 | $ | 62,534 | |||||||||||
Net interest revenue reconciliation | |||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 75,222 | $ | 74,048 | $ | 65,718 | $ | 61,317 | $ | 57,617 | |||||||||||
Taxable equivalent adjustment | (270 | ) | (284 | ) | (292 | ) | (326 | ) | (375 | ) | |||||||||||
Net interest revenue (GAAP) | $ | 74,952 | $ | 73,764 | $ | 65,426 | $ | 60,991 | $ | 57,242 | |||||||||||
Total revenue reconciliation | |||||||||||||||||||||
Total operating revenue | $ | 94,028 | $ | 95,032 | $ | 83,315 | $ | 77,683 | $ | 71,499 | |||||||||||
Taxable equivalent adjustment | (270 | ) | (284 | ) | (292 | ) | (326 | ) | (375 | ) | |||||||||||
Total revenue (GAAP) | $ | 93,758 | $ | 94,748 | $ | 83,023 | $ | 77,357 | $ | 71,124 | |||||||||||
Expense reconciliation | |||||||||||||||||||||
Expenses - operating | $ | 55,232 | $ | 56,410 | $ | 48,525 | $ | 45,247 | $ | 43,061 | |||||||||||
Merger-related and other charges | 2,653 | 9,078 | 5,744 | 3,173 | - | ||||||||||||||||
Expenses (GAAP) | $ | 57,885 | $ | 65,488 | $ | 54,269 | $ | 48,420 | $ | 43,061 | |||||||||||
Income before taxes reconciliation | |||||||||||||||||||||
Income before taxes - operating | $ | 38,796 | $ | 38,622 | $ | 34,790 | $ | 32,436 | $ | 28,438 | |||||||||||
Taxable equivalent adjustment | (270 | ) | (284 | ) | (292 | ) | (326 | ) | (375 | ) | |||||||||||
Merger-related and other charges | (2,653 | ) | (9,078 | ) | (5,744 | ) | (3,173 | ) | - | ||||||||||||
Income before taxes (GAAP) | $ | 35,873 | $ | 29,260 | $ | 28,754 | $ | 28,937 | $ | 28,063 | |||||||||||
Income tax expense reconciliation | |||||||||||||||||||||
Income tax expense - operating | $ | 14,852 | $ | 14,822 | $ | 13,064 | $ | 12,447 | $ | 10,768 | |||||||||||
Taxable equivalent adjustment | (270 | ) | (284 | ) | (292 | ) | (326 | ) | (375 | ) | |||||||||||
Merger-related and other charges, tax benefit | (1,004 | ) | (3,486 | ) | (1,905 | ) | (997 | ) | - | ||||||||||||
Income tax expense (GAAP) | $ | 13,578 | $ | 11,052 | $ | 10,867 | $ | 11,124 | $ | 10,393 | |||||||||||
Net income reconciliation | |||||||||||||||||||||
Net income - operating | $ | 23,944 | $ | 23,800 | $ | 21,726 | $ | 19,989 | $ | 17,670 | |||||||||||
Merger-related and other charges, net of income tax benefit | (1,649 | ) | (5,592 | ) | (3,839 | ) | (2,176 | ) | - | ||||||||||||
Net income (GAAP) | $ | 22,295 | $ | 18,208 | $ | 17,887 | $ | 17,813 | $ | 17,670 | |||||||||||
Net income available to common shareholders reconciliation | |||||||||||||||||||||
Net income available to common shareholders - operating | $ | 23,923 | $ | 23,775 | $ | 21,701 | $ | 19,972 | $ | 17,670 | |||||||||||
Merger-related and other charges, net of income tax benefit | (1,649 | ) | (5,592 | ) | (3,839 | ) | (2,176 | ) | - | ||||||||||||
Net income available to common shareholders (GAAP) | $ | 22,274 | $ | 18,183 | $ | 17,862 | $ | 17,796 | $ | 17,670 | |||||||||||
Diluted income per common share reconciliation | |||||||||||||||||||||
Diluted income per common share - operating | $ | .33 | $ | .33 | $ | .33 | $ | .32 | $ | .29 | |||||||||||
Merger-related and other charges | (.02 | ) | (.08 | ) | (.06 | ) | (.04 | ) | - | ||||||||||||
Diluted income per common share (GAAP) | $ | .31 | $ | .25 | $ | .27 | $ | .28 | $ | .29 | |||||||||||
Book value per common share reconciliation | |||||||||||||||||||||
Tangible book value per common share | $ | 12.40 | $ | 12.06 | $ | 12.08 | $ | 12.66 | $ | 12.53 | |||||||||||
Effect of goodwill and other intangibles | 1.95 | 1.96 | 1.87 | .29 | .05 | ||||||||||||||||
Book value per common share (GAAP) | $ | 14.35 | $ | 14.02 | $ | 13.95 | $ | 12.95 | $ | 12.58 | |||||||||||
Return on tangible common equity reconciliation | |||||||||||||||||||||
Return on tangible common equity - operating | 10.91 | % | 10.87 | % | 10.29 | % | 10.20 | % | 9.46 | % | |||||||||||
Effect of goodwill and other intangibles | (1.71 | ) | (1.69 | ) | (.75 | ) | (.30 | ) | (.12 | ) | |||||||||||
Return on common equity - operating | 9.20 | 9.18 | 9.54 | 9.90 | 9.34 | ||||||||||||||||
Merger-related and other charges | (.63 | ) | (2.16 | ) | (1.69 | ) | (1.07 | ) | - | ||||||||||||
Return on common equity (GAAP) | 8.57 | % | 7.02 | % | 7.85 | % | 8.83 | % | 9.34 | % | |||||||||||
Return on assets reconciliation | |||||||||||||||||||||
Return on assets - operating | 1.00 | % | .99 | % | 1.00 | % | 1.00 | % | .94 | % | |||||||||||
Merger-related and other charges | (.07 | ) | (.23 | ) | (.18 | ) | (.11 | ) | - | ||||||||||||
Return on assets (GAAP) | .93 | % | .76 | % | .82 | % | .89 | % | .94 | % | |||||||||||
Dividend payout ratio reconciliation | |||||||||||||||||||||
Dividend payout ratio - operating | 21.21 | % | 18.18 | % | 18.18 | % | 15.63 | % | 17.24 | % | |||||||||||
Merger-related and other charges | 1.37 | 5.82 | 4.04 | 2.23 | - | ||||||||||||||||
Dividend payout ratio (GAAP) | 22.58 | % | 24.00 | % | 22.22 | % | 17.86 | % | 17.24 | % | |||||||||||
Efficiency ratio reconciliation | |||||||||||||||||||||
Efficiency ratio - operating | 59.10 | % | 59.41 | % | 57.81 | % | 57.59 | % | 59.15 | % | |||||||||||
Merger-related and other charges | 2.84 | 9.56 | 6.84 | 4.04 | - | ||||||||||||||||
Efficiency ratio (GAAP) | 61.94 | % | 68.97 | % | 64.65 | % | 61.63 | % | 59.15 | % | |||||||||||
Average equity to assets reconciliation | |||||||||||||||||||||
Tangible common equity to assets | 9.32 | % | 9.29 | % | 9.77 | % | 9.83 | % | 9.82 | % | |||||||||||
Effect of preferred equity | .09 | .11 | .11 | .08 | - | ||||||||||||||||
Tangible equity to assets | 9.41 | 9.40 | 9.88 | 9.91 | 9.82 | ||||||||||||||||
Effect of goodwill and other intangibles | 1.31 | 1.28 | .51 | .14 | .04 | ||||||||||||||||
Equity to assets (GAAP) | 10.72 | % | 10.68 | % | 10.39 | % | 10.05 | % | 9.86 | % | |||||||||||
Tangible common equity to risk-weighted assets reconciliation (1) | |||||||||||||||||||||
Tangible common equity to risk-weighted assets | 12.77 | % | 12.82 | % | 13.08 | % | 13.24 | % | 13.53 | % | |||||||||||
Effect of other comprehensive income | .25 | .38 | .23 | .28 | .19 | ||||||||||||||||
Effect of deferred tax limitation | (1.85 | ) | (2.05 | ) | (2.24 | ) | (2.49 | ) | (2.86 | ) | |||||||||||
Effect of trust preferred | .08 | .08 | .08 | .63 | .67 | ||||||||||||||||
Effect of preferred equity | - | .15 | .15 | .17 | - | ||||||||||||||||
Basel III intangibles transition adjustment | .07 | .10 | .13 | .06 | .04 | ||||||||||||||||
Basel III disallowed investments | - | (.03 | ) | (.03 | ) | (.03 | ) | (.04 | ) | ||||||||||||
Tier I capital ratio (Regulatory) | 11.32 | % | 11.45 | % | 11.40 | % | 11.86 | % | 11.53 | % | |||||||||||
(1) First quarter 2016 ratios are preliminary. | |||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Loan Portfolio Composition at Period-End | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Owner occupied commercial RE | $ | 1,434 | $ | 1,494 | $ | 1,479 | $ | 1,266 | $ | 1,167 | ||||||||||
Income producing commercial RE | 880 | 824 | 818 | 689 | 636 | |||||||||||||||
Commercial & industrial | 855 | 785 | 890 | 793 | 716 | |||||||||||||||
Commercial construction | 354 | 342 | 319 | 238 | 230 | |||||||||||||||
Total commercial | 3,523 | 3,445 | 3,506 | 2,986 | 2,749 | |||||||||||||||
Residential mortgage | 1,032 | 1,029 | 1,062 | 935 | 864 | |||||||||||||||
Home equity lines of credit | 604 | 598 | 585 | 491 | 465 | |||||||||||||||
Residential construction | 348 | 352 | 334 | 299 | 291 | |||||||||||||||
Consumer installment | 599 | 571 | 537 | 463 | 419 | |||||||||||||||
Total loans | $ | 6,106 | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||
North Georgia | $ | 1,097 | $ | 1,125 | $ | 1,130 | $ | 1,155 | $ | 1,150 | ||||||||||
Atlanta MSA | 1,257 | 1,259 | 1,266 | 1,275 | 1,254 | |||||||||||||||
North Carolina | 543 | 549 | 546 | 533 | 539 | |||||||||||||||
Coastal Georgia | 543 | 537 | 506 | 499 | 476 | |||||||||||||||
Gainesville MSA | 248 | 254 | 252 | 257 | 255 | |||||||||||||||
East Tennessee | 495 | 504 | 511 | 525 | 281 | |||||||||||||||
South Carolina | 821 | 819 | 783 | 35 | 30 | |||||||||||||||
Specialized Lending | 628 | 492 | 609 | 538 | 487 | |||||||||||||||
Indirect auto | 474 | 456 | 421 | 357 | 316 | |||||||||||||||
Total loans | $ | 6,106 | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | ||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Loan Portfolio Composition at Period-End | ||||||||||||||||||||
2016 | 2015 | Linked Quarter Change | Year over Year Change | |||||||||||||||||
First | Fourth | First | ||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | |||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Owner occupied commercial RE | $ | 1,434 | $ | 1,494 | $ | 1,167 | $ | (60 | ) | $ | 267 | |||||||||
Income producing commercial RE | 880 | 824 | 636 | 56 | 244 | |||||||||||||||
Commercial & industrial | 855 | 785 | 716 | 70 | 139 | |||||||||||||||
Commercial construction | 354 | 342 | 230 | 12 | 124 | |||||||||||||||
Total commercial | 3,523 | 3,445 | 2,749 | 78 | 774 | |||||||||||||||
Residential mortgage | 1,032 | 1,029 | 864 | 3 | 168 | |||||||||||||||
Home equity lines of credit | 604 | 598 | 465 | 6 | 139 | |||||||||||||||
Residential construction | 348 | 352 | 291 | (4 | ) | 57 | ||||||||||||||
Consumer installment | 599 | 571 | 419 | 28 | 180 | |||||||||||||||
Total loans | $ | 6,106 | $ | 5,995 | $ | 4,788 | 111 | 1,318 | ||||||||||||
LOANS BY MARKET | ||||||||||||||||||||
North Georgia | $ | 1,097 | $ | 1,125 | $ | 1,150 | (28 | ) | (53 | ) | ||||||||||
Atlanta MSA | 1,257 | 1,259 | 1,254 | (2 | ) | 3 | ||||||||||||||
North Carolina | 543 | 549 | 539 | (6 | ) | 4 | ||||||||||||||
Coastal Georgia | 543 | 537 | 476 | 6 | 67 | |||||||||||||||
Gainesville MSA | 248 | 254 | 255 | (6 | ) | (7 | ) | |||||||||||||
East Tennessee | 495 | 504 | 281 | (9 | ) | 214 | ||||||||||||||
South Carolina | 821 | 819 | 30 | 2 | 791 | |||||||||||||||
Specialized Lending | 628 | 492 | 487 | 136 | 141 | |||||||||||||||
Indirect auto | 474 | 456 | 316 | 18 | 158 | |||||||||||||||
Total loans | $ | 6,106 | $ | 5,995 | $ | 4,788 | 111 | 1,318 | ||||||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Financial Highlights | |||||||||||||||
Credit Quality | |||||||||||||||
First Quarter 2016 | |||||||||||||||
Nonperforming | Foreclosed | Total | |||||||||||||
(in thousands) | Loans | Properties | NPAs | ||||||||||||
NONPERFORMING ASSETS BY CATEGORY | |||||||||||||||
Owner occupied CRE | $ | 6,775 | $ | 2,864 | $ | 9,639 | |||||||||
Income producing CRE | 2,959 | - | 2,959 | ||||||||||||
Commercial & industrial | 978 | - | 978 | ||||||||||||
Commercial construction | 266 | 152 | 418 | ||||||||||||
Total commercial | 10,978 | 3,016 | 13,994 | ||||||||||||
Residential mortgage | 8,037 | 1,587 | 9,624 | ||||||||||||
Home equity lines of credit | 1,198 | 125 | 1,323 | ||||||||||||
Residential construction | 1,122 | 435 | 1,557 | ||||||||||||
Consumer installment | 1,084 | - | 1,084 | ||||||||||||
Total NPAs | $ | 22,419 | $ | 5,163 | $ | 27,582 | |||||||||
Balance as a % of | |||||||||||||||
Unpaid Principal | 69.3 | % | 38.2 | % | 60.1 | % | |||||||||
NONPERFORMING ASSETS BY MARKET | |||||||||||||||
North Georgia | $ | 5,353 | $ | 1,233 | $ | 6,586 | |||||||||
Atlanta MSA | 2,796 | 902 | 3,698 | ||||||||||||
North Carolina | 4,860 | 559 | 5,419 | ||||||||||||
Coastal Georgia | 1,696 | 121 | 1,817 | ||||||||||||
Gainesville MSA | 250 | - | 250 | ||||||||||||
East Tennessee | 3,470 | 351 | 3,821 | ||||||||||||
South Carolina | 935 | 1,997 | 2,932 | ||||||||||||
Specialized Lending | 2,186 | - | 2,186 | ||||||||||||
Indirect auto | 873 | - | 873 | ||||||||||||
Total NPAs | $ | 22,419 | $ | 5,163 | $ | 27,582 | |||||||||
NONPERFORMING ASSETS ACTIVITY | |||||||||||||||
Beginning Balance | $ | 22,653 | $ | 4,883 | $ | 27,536 | |||||||||
Acquisitions | - | - | - | ||||||||||||
Loans placed on non-accrual | 4,771 | - | 4,771 | ||||||||||||
Payments received | (1,812 | ) | - | (1,812 | ) | ||||||||||
Loan charge-offs | (1,679 | ) | - | (1,679 | ) | ||||||||||
Foreclosures | (1,514 | ) | 1,590 | 76 | |||||||||||
Capitalized costs | - | - | - | ||||||||||||
Property sales | - | (1,524 | ) | (1,524 | ) | ||||||||||
Write downs | - | (7 | ) | (7 | ) | ||||||||||
Net gains (losses) on sales | - | 221 | 221 | ||||||||||||
Ending Balance | $ | 22,419 | $ | 5,163 | $ | 27,582 | |||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Financial Highlights | |||||||||||||||
Credit Quality | |||||||||||||||
Fourth Quarter 2015 | |||||||||||||||
Nonperforming | Foreclosed | Total | |||||||||||||
(in thousands) | Loans | Properties | NPAs | ||||||||||||
NONPERFORMING ASSETS BY CATEGORY | |||||||||||||||
Owner occupied CRE | $ | 7,036 | $ | 2,652 | $ | 9,688 | |||||||||
Income producing CRE | 2,595 | - | 2,595 | ||||||||||||
Commercial & industrial | 892 | - | 892 | ||||||||||||
Commercial construction | 328 | 437 | 765 | ||||||||||||
Total commercial | 10,851 | 3,089 | 13,940 | ||||||||||||
Residential mortgage | 8,555 | 1,242 | 9,797 | ||||||||||||
Home equity lines of credit | 851 | 80 | 931 | ||||||||||||
Residential construction | 1,398 | 472 | 1,870 | ||||||||||||
Consumer installment | 998 | - | 998 | ||||||||||||
Total NPAs | $ | 22,653 | $ | 4,883 | $ | 27,536 | |||||||||
Balance as a % of | |||||||||||||||
Unpaid Principal | 71.4 | % | 34.2 | % | 59.8 | % | |||||||||
NONPERFORMING ASSETS BY MARKET | |||||||||||||||
North Georgia | $ | 5,167 | $ | 1,612 | $ | 6,779 | |||||||||
Atlanta MSA | 3,023 | 625 | 3,648 | ||||||||||||
North Carolina | 5,289 | 183 | 5,472 | ||||||||||||
Coastal Georgia | 2,079 | - | 2,079 | ||||||||||||
Gainesville MSA | 307 | - | 307 | ||||||||||||
East Tennessee | 3,448 | 157 | 3,605 | ||||||||||||
South Carolina | 323 | 2,306 | 2,629 | ||||||||||||
Specialized Lending | 2,231 | - | 2,231 | ||||||||||||
Indirect auto | 786 | - | 786 | ||||||||||||
Total NPAs | $ | 22,653 | $ | 4,883 | $ | 27,536 | |||||||||
NONPERFORMING ASSETS ACTIVITY | |||||||||||||||
Beginning Balance | $ | 20,064 | $ | 7,669 | $ | 27,733 | |||||||||
Acquisitions | - | (1,585 | ) | (1,585 | ) | ||||||||||
Loans placed on non-accrual | 10,768 | - | 10,768 | ||||||||||||
Payments received | (4,893 | ) | - | (4,893 | ) | ||||||||||
Loan charge-offs | (1,813 | ) | - | (1,813 | ) | ||||||||||
Foreclosures | (1,473 | ) | 1,497 | 24 | |||||||||||
Capitalized costs | - | - | - | ||||||||||||
Property sales | - | (2,968 | ) | (2,968 | ) | ||||||||||
Write downs | - | 11 | 11 | ||||||||||||
Net gains (losses) on sales | - | 259 | 259 | ||||||||||||
Ending Balance | $ | 22,653 | $ | 4,883 | $ | 27,536 | |||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Financial Highlights | |||||||||||||||
Credit Quality | |||||||||||||||
Third Quarter 2015 | |||||||||||||||
Nonperforming | Foreclosed | Total | |||||||||||||
(in thousands) | Loans | Properties | NPAs | ||||||||||||
NONPERFORMING ASSETS BY CATEGORY | |||||||||||||||
Owner occupied CRE | $ | 5,918 | $ | 882 | $ | 6,800 | |||||||||
Income producing CRE | 1,238 | 4,084 | 5,322 | ||||||||||||
Commercial & industrial | 1,068 | - | 1,068 | ||||||||||||
Commercial construction | 256 | 657 | 913 | ||||||||||||
Total commercial | 8,480 | 5,623 | 14,103 | ||||||||||||
Residential mortgage | 8,847 | 1,454 | 10,301 | ||||||||||||
Home equity lines of credit | 890 | 87 | 977 | ||||||||||||
Residential construction | 929 | 505 | 1,434 | ||||||||||||
Consumer installment | 918 | - | 918 | ||||||||||||
Total NPAs | $ | 20,064 | $ | 7,669 | $ | 27,733 | |||||||||
Balance as a % of | |||||||||||||||
Unpaid Principal | 70.3 | % | 45.8 | % | 61.2 | % | |||||||||
NONPERFORMING ASSETS BY MARKET | |||||||||||||||
North Georgia | $ | 6,403 | $ | 1,263 | $ | 7,666 | |||||||||
Atlanta MSA | 1,750 | 1,122 | 2,872 | ||||||||||||
North Carolina | 4,564 | 9 | 4,573 | ||||||||||||
Coastal Georgia | 338 | 66 | 404 | ||||||||||||
Gainesville MSA | 325 | 3 | 328 | ||||||||||||
East Tennessee | 2,886 | 231 | 3,117 | ||||||||||||
South Carolina | 267 | 4,975 | 5,242 | ||||||||||||
Specialized Lending | 2,809 | - | 2,809 | ||||||||||||
Indirect auto | 722 | - | 722 | ||||||||||||
Total NPAs | $ | 20,064 | $ | 7,669 | $ | 27,733 | |||||||||
NONPERFORMING ASSETS ACTIVITY | |||||||||||||||
Beginning Balance | $ | 18,805 | $ | 2,356 | $ | 21,161 | |||||||||
Acquisitions | - | 4,848 | 4,848 | ||||||||||||
Loans placed on non-accrual | 8,923 | - | 8,923 | ||||||||||||
Payments received | (4,233 | ) | - | (4,233 | ) | ||||||||||
Loan charge-offs | (1,531 | ) | - | (1,531 | ) | ||||||||||
Foreclosures | (1,900 | ) | 1,900 | - | |||||||||||
Capitalized costs | - | 256 | 256 | ||||||||||||
Property sales | - | (1,916 | ) | (1,916 | ) | ||||||||||
Write downs | - | (79 | ) | (79 | ) | ||||||||||
Net gains (losses) on sales | - | 304 | 304 | ||||||||||||
Ending Balance | $ | 20,064 | $ | 7,669 | $ | 27,733 | |||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||
First Quarter 2016 | Fourth Quarter 2015 | Third Quarter 2015 | ||||||||||||||||||||||
Net Charge- | Net Charge- | Net Charge- | ||||||||||||||||||||||
Offs to | Offs to | Offs to | ||||||||||||||||||||||
Net | Average | Net | Average | Net | Average | |||||||||||||||||||
(in thousands) | Charge-Offs | Loans (1) | Charge-Offs | Loans (1) | Charge-Offs | Loans (1) | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Owner occupied CRE | $ | 304 | .08 | % | $ | 861 | .23 | % | $ | 236 | .07 | % | ||||||||||||
Income producing CRE | 211 | .10 | (35 | ) | (.02 | ) | (106 | ) | (.06 | ) | ||||||||||||||
Commercial & industrial | 283 | .14 | (719 | ) | (.34 | ) | 190 | .09 | ||||||||||||||||
Commercial construction | 286 | .33 | 253 | .31 | 59 | .09 | ||||||||||||||||||
Total commercial | 1,084 | .13 | 360 | .04 | 379 | .05 | ||||||||||||||||||
Residential mortgage | 50 | .02 | (120 | ) | (.05 | ) | 433 | .18 | ||||||||||||||||
Home equity lines of credit | 632 | .43 | 194 | .13 | 293 | .22 | ||||||||||||||||||
Residential construction | (103 | ) | (.12 | ) | 415 | .48 | (124 | ) | (.16 | ) | ||||||||||||||
Consumer installment | 475 | .33 | 453 | .33 | 436 | .35 | ||||||||||||||||||
Total | $ | 2,138 | .14 | $ | 1,302 | .09 | $ | 1,417 | .10 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
North Georgia | $ | 913 | .33 | % | $ | 1,011 | .36 | % | $ | 1,352 | .47 | % | ||||||||||||
Atlanta MSA | (25 | ) | (.01 | ) | 496 | .16 | 74 | .02 | ||||||||||||||||
North Carolina | 382 | .28 | 426 | .31 | 183 | .13 | ||||||||||||||||||
Coastal Georgia | 196 | .15 | 47 | .04 | 19 | .02 | ||||||||||||||||||
Gainesville MSA | 98 | .16 | (340 | ) | (.54 | ) | (236 | ) | (.36 | ) | ||||||||||||||
East Tennessee | 378 | .31 | (326 | ) | (.26 | ) | 153 | .12 | ||||||||||||||||
South Carolina | (16 | ) | (.01 | ) | (474 | ) | (.24 | ) | (247 | ) | (.34 | ) | ||||||||||||
Specialized Lending | 4 | - | 253 | .18 | (42 | ) | (.03 | ) | ||||||||||||||||
Indirect auto | 208 | .19 | 209 | .19 | 161 | .17 | ||||||||||||||||||
Total | $ | 2,138 | .14 | $ | 1,302 | .09 | $ | 1,417 | .10 | |||||||||||||||
(1) Annualized. |
UNITED COMMUNITY BANKS, INC. | |||||||||
Consolidated Statement of Income (Unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(in thousands, except per share data) | 2016 | 2015 | |||||||
Interest revenue: | |||||||||
Loans, including fees | $ | 63,976 | $ | 49,664 | |||||
Investment securities, including tax exempt of $166 and $158 | 15,788 | 12,058 | |||||||
Deposits in banks and short-term investments | 957 | 812 | |||||||
Total interest revenue | 80,721 | 62,534 | |||||||
Interest expense: | |||||||||
Deposits: | |||||||||
NOW | 485 | 394 | |||||||
Money market | 1,108 | 673 | |||||||
Savings | 29 | 20 | |||||||
Time | 642 | 1,109 | |||||||
Total deposit interest expense | 2,264 | 2,196 | |||||||
Short-term borrowings | 87 | 98 | |||||||
Federal Home Loan Bank advances | 733 | 392 | |||||||
Long-term debt | 2,685 | 2,606 | |||||||
Total interest expense | 5,769 | 5,292 | |||||||
Net interest revenue | 74,952 | 57,242 | |||||||
Provision for credit losses | (200 | ) | 1,800 | ||||||
Net interest revenue after provision for credit losses | 75,152 | 55,442 | |||||||
Fee revenue: | |||||||||
Service charges and fees | 10,126 | 7,615 | |||||||
Mortgage loan and other related fees | 3,289 | 2,755 | |||||||
Brokerage fees | 1,053 | 1,551 | |||||||
Gains from sales of government guaranteed loans | 1,237 | 1,141 | |||||||
Securities gains, net | 379 | 1,539 | |||||||
Loss from prepayment of debt | - | (1,038 | ) | ||||||
Other | 2,522 | 2,119 | |||||||
Total fee revenue | 18,606 | 15,682 | |||||||
Total revenue | 93,758 | 71,124 | |||||||
Operating expenses: | |||||||||
Salaries and employee benefits | 33,062 | 26,446 | |||||||
Communications and equipment | 4,290 | 3,271 | |||||||
Occupancy | 4,723 | 3,278 | |||||||
Advertising and public relations | 864 | 750 | |||||||
Postage, printing and supplies | 1,280 | 938 | |||||||
Professional fees | 2,700 | 1,919 | |||||||
FDIC assessments and other regulatory charges | 1,524 | 1,209 | |||||||
Amortization of intangibles | 1,010 | 242 | |||||||
Merger-related and other charges | 2,653 | - | |||||||
Other | 5,779 | 5,008 | |||||||
Total operating expenses | 57,885 | 43,061 | |||||||
Net income before income taxes | 35,873 | 28,063 | |||||||
Income tax expense | 13,578 | 10,393 | |||||||
Net income | 22,295 | 17,670 | |||||||
Preferred stock dividends and discount accretion | 21 | - | |||||||
Net income available to common shareholders | $ | 22,274 | $ | 17,670 | |||||
Earnings per common share: | |||||||||
Basic | $ | .31 | $ | .29 | |||||
.31 | .29 | ||||||||
Weighted average common shares outstanding: | |||||||||
Basic | 72,162 | 60,905 | |||||||
Diluted | 72,166 | 60,909 | |||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||
Consolidated Balance Sheet (Unaudited) | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
(in thousands, except share and per share data) | 2016 | 2015 | 2015 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 93,821 | $ | 86,912 | $ | 77,493 | ||||||
Interest-bearing deposits in banks | 88,995 | 153,451 | 82,269 | |||||||||
Short-term investments | - | - | 25,902 | |||||||||
Cash and cash equivalents | 182,816 | 240,363 | 185,664 | |||||||||
Securities available for sale | 2,405,467 | 2,291,511 | 1,801,973 | |||||||||
Securities held to maturity (fair value $363,092, $371,658 and $413,550) | 351,700 | 364,696 | 399,228 | |||||||||
Mortgage loans held for sale | 26,578 | 24,231 | 15,723 | |||||||||
Loans, net of unearned income | 6,106,189 | 5,995,441 | 4,787,689 | |||||||||
Less allowance for loan losses | (66,310 | ) | (68,448 | ) | (70,007 | ) | ||||||
Loans, net | 6,039,879 | 5,926,993 | 4,717,682 | |||||||||
Premises and equipment, net | 180,690 | 178,165 | 159,036 | |||||||||
Bank owned life insurance | 105,803 | 105,493 | 81,490 | |||||||||
Accrued interest receivable | 25,893 | 25,786 | 20,154 | |||||||||
Net deferred tax asset | 180,371 | 197,613 | 201,898 | |||||||||
Derivative financial instruments | 23,488 | 20,082 | 20,291 | |||||||||
Goodwill and other intangible assets | 146,409 | 147,420 | 3,399 | |||||||||
Other assets | 112,237 | 94,075 | 47,998 | |||||||||
Total assets | $ | 9,781,331 | $ | 9,616,428 | $ | 7,654,536 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 2,370,842 | $ | 2,204,755 | $ | 1,694,755 | ||||||
NOW | 1,794,241 | 1,975,884 | 1,420,956 | |||||||||
Money market | 1,630,565 | 1,599,637 | 1,306,421 | |||||||||
Savings | 491,542 | 471,129 | 312,013 | |||||||||
Time | 1,233,647 | 1,282,803 | 1,206,278 | |||||||||
Brokered | 439,486 | 338,985 | 489,141 | |||||||||
Total deposits | 7,960,323 | 7,873,193 | 6,429,564 | |||||||||
Repurchase agreements | - | 16,640 | - | |||||||||
Federal Home Loan Bank advances | 510,125 | 430,125 | 270,125 | |||||||||
Long-term debt | 163,955 | 163,836 | 112,901 | |||||||||
Derivative financial instruments | 31,374 | 28,825 | 29,276 | |||||||||
Accrued expenses and other liabilities | 81,829 | 85,524 | 48,965 | |||||||||
Total liabilities | 8,747,606 | 8,598,143 | 6,890,831 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||||||
Series H; $1,000 stated value; 0, 9,992 and 0 shares issued and outstanding | - | 9,992 | - | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||||||
66,258,777, 66,198,477 and 50,228,075 shares issued and outstanding | 66,259 | 66,198 | 50,228 | |||||||||
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; | ||||||||||||
5,285,516, 5,285,516 and 10,080,787 shares issued and outstanding | 5,286 | 5,286 | 10,081 | |||||||||
Common stock issuable; 496,515, 458,953 and 400,369 shares | 6,700 | 6,779 | 5,895 | |||||||||
Capital surplus | 1,286,884 | 1,286,361 | 1,081,110 | |||||||||
Accumulated deficit | (313,646 | ) | (330,879 | ) | (372,933 | ) | ||||||
Accumulated other comprehensive loss | (17,758 | ) | (25,452 | ) | (10,676 | ) | ||||||
Total shareholders' equity | 1,033,725 | 1,018,285 | 763,705 | |||||||||
Total liabilities and shareholders' equity | $ | 9,781,331 | $ | 9,616,428 | $ | 7,654,536 | ||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||
(dollars in thousands, fully taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||
Assets: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans, net of unearned income (1)(2) | $ | 6,003,568 | $ | 64,044 | 4.29 | % | $ | 4,725,304 | $ | 49,865 | 4.28 | % | ||||||||
Taxable securities (3) | 2,688,564 | 15,622 | 2.32 | 2,186,756 | 11,900 | 2.18 | ||||||||||||||
Tax-exempt securities (1)(3) | 29,744 | 272 | 3.66 | 16,236 | 259 | 6.38 | ||||||||||||||
Federal funds sold and other interest-earning assets | 153,759 | 1,053 | 2.74 | 141,414 | 885 | 2.50 | ||||||||||||||
Total interest-earning assets | 8,875,635 | 80,991 | 3.67 | 7,069,710 | 62,909 | 3.60 | ||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||
Allowance for loan losses | (68,473 | ) | (72,192 | ) | ||||||||||||||||
Cash and due from banks | 85,635 | 79,025 | ||||||||||||||||||
Premises and equipment | 180,090 | 159,502 | ||||||||||||||||||
Other assets (3) | 561,261 | 381,300 | ||||||||||||||||||
Total assets | $ | 9,634,148 | $ | 7,617,345 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
NOW | $ | 1,886,472 | 485 | .10 | $ | 1,475,913 | 394 | .11 | ||||||||||||
Money market | 1,840,584 | 1,108 | .24 | 1,466,913 | 673 | .19 | ||||||||||||||
Savings | 480,238 | 29 | .02 | 300,344 | 20 | .03 | ||||||||||||||
Time | 1,259,689 | 817 | .26 | 1,231,705 | 1,388 | .46 | ||||||||||||||
Brokered time deposits | 233,213 | (175 | ) | (.30 | ) | 273,327 | (279 | ) | (.41 | ) | ||||||||||
Total interest-bearing deposits | 5,700,196 | 2,264 | .16 | 4,748,202 | 2,196 | .19 | ||||||||||||||
Federal funds purchased and other borrowings | 34,906 | 87 | 1.00 | 36,145 | 98 | 1.10 | ||||||||||||||
Federal Home Loan Bank advances | 346,169 | 733 | .85 | 239,181 | 392 | .66 | ||||||||||||||
Long-term debt | 165,419 | 2,685 | 6.53 | 127,740 | 2,606 | 8.27 | ||||||||||||||
Total borrowed funds | 546,494 | 3,505 | 2.58 | 403,066 | 3,096 | 3.12 | ||||||||||||||
Total interest-bearing liabilities | 6,246,690 | 5,769 | .37 | 5,151,268 | 5,292 | .42 | ||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||
Non-interest-bearing deposits | 2,247,041 | 1,620,984 | ||||||||||||||||||
Other liabilities | 107,320 | 94,207 | ||||||||||||||||||
Total liabilities | 8,601,051 | 6,866,459 | ||||||||||||||||||
Shareholders' equity | 1,033,097 | 750,886 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,634,148 | $ | 7,617,345 | ||||||||||||||||
Net interest revenue | $ | 75,222 | $ | 57,617 | ||||||||||||||||
Net interest-rate spread | 3.30 | % | 3.18 | % | ||||||||||||||||
Net interest margin (4) | 3.41 | % | 3.31 | % | ||||||||||||||||
(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 $2.20 million in 2016 and pretax unrealized gains of $10.8 | ||||||||||||||||||||
million in 2015 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. | ||||||||||||||||||||