United Community Banks, Inc. Reports Earnings of $230 Million for Second Quarter 2013

Marketwired

BLAIRSVILLE, GA--(Marketwired - Jul 25, 2013) - United Community Banks, Inc. ( NASDAQ : UCBI )

  • Net income of $230 million, or $3.90 per share
  • Earnings reflect impact of reversal of valuation allowance on deferred tax asset and accelerated sales of classified assets
  • Credit measures now at pre-credit crisis levels
  • Capital levels remain strong

United Community Banks, Inc. ( NASDAQ : UCBI ) today reported net income of $230 million, or $3.90 per share, for the second quarter of 2013, and $242 million, or $4.05 per share, for the first six months of 2013. The results reflect the impact of two very significant events during the second quarter -- the reversal of the valuation allowance on United's net deferred tax asset and higher provision for loan losses and foreclosed property expenses from the accelerated sales of classified assets.

"The second quarter events mark the final phase of our recovery from the financial crisis that has affected so many banks throughout the country and especially within our footprint," said Jimmy Tallent, president and chief executive officer. "With the reversal of our valuation allowance and the accelerated sales of classified assets, the lingering effects of the credit crisis are behind us. We can now devote full attention toward growing our business and increasing the value of our shareholders' investments."

Tallent noted that the reduction in loans resulting from the accelerated classified loan sales masked an otherwise solid quarter of loan growth. Though the company sold loans with a carrying amount of $151 million, total loans were only down $5 million from the first quarter.

"Achieving quality loan growth remains a top priority despite continued challenges with the sluggish economy," Tallent said. "We are accomplishing this objective by adding lenders strategically, including in our vibrant new markets of Greenville, South Carolina and Nashville, Tennessee."

The second quarter provision for loan losses was $48.5 million compared with $11 million in the first quarter and with $18 million in the second quarter of 2012. The increase reflects the higher level of charge-offs associated with the accelerated classified loan sales. Second quarter net charge-offs were $72.4 million compared with $12.4 million in the first quarter and $18.9 million a year ago. The $48.5 million provision reflects the difference between the $72.4 million in net charge-offs offset by a $24 million reduction in the allowance for loan losses.

"We believed the time was right to take the final step toward putting the financial crisis behind us by selling our stress-related classified assets, including a bulk sale of $131 million," Tallent said. "We have cleansed our balance sheet of legacy problem credits and are turning full attention to strategic initiatives to grow our business and shareholder value."

Nonperforming assets at quarter-end were $31.8 million, representing .44 percent of total assets. This total is down from $113 million, or 1.65 percent, at March 31, 2013, and $146 million, or 2.16 percent, at June 30, 2012. The classified asset ratio, which is the ratio of classified assets to Tier 1 regulatory capital plus the allowance for loan losses, declined to 27 percent from 49 percent at March 31 and from 62 percent a year ago.

Second quarter taxable equivalent net interest revenue totaled $54.6 million, down $97,000 from the first quarter and down $2.27 million from the second quarter of 2012. "The decrease reflects the ongoing trend of lower yields on our loan and investment securities portfolios," said Tallent. "The lower loan portfolio yield reflects competitive pricing pressure on new and renewed loans and new retail product offerings with low introductory rates. Introductory rates on the new retail products will begin to expire and approximately $50 million will reset to a market rate in the third quarter of 2013. The lower investment securities yield is due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities, with a focus on floating-rate securities, to alleviate market and duration risk. At quarter-end, floating-rate securities accounted for 39 percent of the total investment securities portfolio compared to 34 percent last quarter. The higher proportion improves our overall interest sensitivity position by reducing exposure to rising interest rates."

The second quarter taxable equivalent net interest margin was 3.31 percent, down seven basis points from the first quarter and 12 basis points from a year ago. "Our net interest margin will remain under pressure as long as interest rates hold at these unprecedented low levels," stated Tallent. "To offset the impact on net interest revenue, we remain sharply focused on growing the loan portfolio in the mid-single digit range by focusing on retail loans and continuing to add commercial lenders in key markets."

Second quarter fee revenue was $16.3 million, compared to $12.8 million in the first quarter and $12.9 million a year ago. Contributing to these increases were higher mortgage, advisory services and interchange fee revenue, as well as two non-core items in other fee revenue. Mortgage fee revenue increased $348,000 from the first quarter and $681,000 from a year ago, to $3.0 million. Closed mortgage loans totaled $95.2 million in the second quarter, compared with $69.8 million in the first quarter and $79.8 million in the second quarter of 2012.

The two non-core items that contributed to the increase in other fee revenue were a $1.37 million recovery on a bank-owned life insurance policy and a $468,000 gain from the sale of low-income housing tax credits. In addition, other fee revenue included customer derivative fees of $488,000 compared with $252,000 in the first quarter of 2013. These fees are from the company's newly rolled-out loan swap program for commercial loan customers.

Operating expenses, excluding foreclosed property costs, were $43.7 million in the second quarter of 2013 compared to $41.4 million for the first quarter of 2013 and $42.5 million a year ago. The increase from both periods was due mostly to higher severance costs; second quarter 2013 severance costs were $1.56 million compared with $360,000 and $1.16 million for the first quarter of 2013 and the second quarter of 2012, respectively. Also contributing to the increase in operating expenses were higher mortgage and brokerage incentives related to the higher revenue levels and higher consulting fees associated with various revenue enhancement and efficiency projects.

Foreclosed property costs were $5.15 million in the second quarter of 2013 compared to $2.33 million in the first quarter and $1.85 million a year ago. The higher total reflects losses incurred on the accelerated sales of foreclosed properties. Included in second quarter 2013 costs were $4.31 million in net losses and write-downs and $837,000 for maintenance. For the first quarter of 2013, foreclosed property costs included $1.15 million in net losses and write-downs and $1.19 million in maintenance. Second quarter 2012 foreclosed property costs included $739,000 in net losses and write-downs and $1.11 million in maintenance.

As of June 30, 2013, capital ratios were as follows: Tier 1 Risk-Based of 13.7 percent; Total Risk-Based of 15.2 percent; Tier 1 Common Risk-Based of 8.5 percent; and, Tangible Equity-to-Assets of 11.5 percent. The average Tier 1 Leverage ratio was 9.8 percent at June 30, 2013.

"With credit quality now well under control, our attention is focused on growing our business and improving earnings performance," concluded Tallent. "In a competitive landscape, we must work more efficiently to achieve our goals, all while maintaining the best customer satisfaction scores in the industry. This team is more than up to the challenge and fully committed."

Conference Call
United will hold a conference call today, Thursday, July 25, 2013, 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 11766770. 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 $7.2 billion and operates 103 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 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) Second
 
Quarter
      First
Quarter
  Fourth
Quarter
  Third
Quarter
  Second
Quarter
  Second
Quarter

2013-
2012

 Change  
INCOME SUMMARY                                      
Interest revenue $ 61,693       $ 62,134   $ 64,450   $ 65,978   $ 66,780      
Interest expense   7,131         7,475     8,422     8,607     9,944      
  Net interest revenue   54,562         54,659     56,028     57,371     56,836   (4 )%
Provision for loan losses   48,500         11,000     14,000     15,500     18,000      
Fee revenue   16,312         12,826     14,761     13,764     12,867   27  
  Total revenue   22,374         56,485     56,789     55,635     51,703      
Operating expenses   48,823         43,770     50,726     44,783     44,310   10  
  (Loss) income before income taxes   (26,449 )       12,715     6,063     10,852     7,393      
Income tax (benefit) expense   (256,413 )       950     802     284     894      
  Net income   229,964         11,765     5,261     10,568     6,499      
Preferred dividends and discount accretion   3,055         3,052     3,045     3,041     3,032      
Net income available to common shareholders $ 226,909       $ 8,713   $ 2,216   $ 7,527   $ 3,467      
                                       
PERFORMANCE MEASURES                                      
  Per common share:                                      
    Diluted income $ 3.90       $ .15   $ .04   $ .13   $ .06      
    Book value   10.90         6.85     6.67     6.75     6.61   65  
    Tangible book value (2)   10.82         6.76     6.57     6.64     6.48   67  
                                       
  Key performance ratios:                                      
    Return on equity (1)(3)   197.22 %       8.51 %   2.15 %   7.43 %   3.51 %    
    Return on assets (3)   13.34         .70     .31     .63     .37      
    Net interest margin (3)   3.31         3.38     3.44     3.60     3.43      
    Efficiency ratio   68.89         64.97     71.69     62.95     63.84      
    Equity to assets   11.57   (4 )   8.60     8.63     8.75     8.33      
    Tangible equity to assets (2)   11.53   (4 )   8.53     8.55     8.66     8.24      
    Tangible common equity to assets (2)   8.79   (4 )   5.66     5.67     5.73     5.45      
    Tangible common equity to risk-weighted assets (2)   13.16         8.45     8.26     8.44     8.37      
                                       
ASSET QUALITY *                                      
  Non-performing loans $ 27,864       $ 96,006   $ 109,894   $ 115,001   $ 115,340      
  Foreclosed properties   3,936         16,734     18,264     26,958     30,421      
    Total non-performing assets (NPAs)   31,800         112,740     128,158     141,959     145,761      
  Allowance for loan losses   81,845         105,753     107,137     107,642     112,705      
  Net charge-offs   72,408         12,384     14,505     20,563     18,896      
  Allowance for loan losses to loans   1.95 %       2.52 %   2.57 %   2.60 %   2.74 %    
  Net charge-offs to average loans (3)   6.87         1.21     1.39     1.99     1.85      
  NPAs to loans and foreclosed properties   .76         2.68     3.06     3.41     3.51      
  NPAs to total assets   .44         1.65     1.88     2.12     2.16      
                                       
AVERAGE BALANCES ($ in millions)                                      
  Loans $ 4,253       $ 4,197   $ 4,191   $ 4,147   $ 4,156   2  
  Investment securities   2,161         2,141     2,088     1,971     2,145   1  
  Earning assets   6,608         6,547     6,482     6,346     6,665   (1 )
  Total assets   6,915         6,834     6,778     6,648     6,993   (1 )
  Deposits   5,983         5,946     5,873     5,789     5,853   2  
  Shareholders' equity   636         588     585     582     583   9  
  Common shares - basic (thousands)   58,141         58,081     57,971     57,880     57,840      
  Common shares - diluted (thousands)   58,141         58,081     57,971     57,880     57,840      
                                       
AT PERIOD END ($ in millions)                                      
  Loans * $ 4,189       $ 4,194   $ 4,175   $ 4,138   $ 4,119   2  
  Investment securities   2,152         2,141     2,079     2,025     1,984   8  
  Total assets   7,163         6,849     6,802     6,699     6,737   6  
  Deposits   6,012         6,026     5,952     5,823     5,822   3  
  Shareholders' equity   829         592     581     585     576   44  
  Common shares outstanding (thousands)   57,831         57,767     57,741     57,710     57,641      
                                         
     
(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 to reflect the full impact of the reversal of the valuation allowance on United's deferred tax asset. The period-end ratio is more indicative of the ratio going forward.
*   Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
     
     
   
UNITED COMMUNITY BANKS, INC.  
Financial Highlights  
Selected Financial Information  
   


(in thousands, except per share data; taxable equivalent)
For the Six
Months Ended
June 30,
 
YTD
2013-2012
 
2013   2012   Change  
INCOME SUMMARY                
Interest revenue $ 123,827   $ 137,001      
Interest expense   14,606     21,301      
  Net interest revenue   109,221     115,700   (6 )%
Provision for loan losses   59,500     33,000      
Fee revenue   29,138     28,246   3  
  Total revenue   78,859     110,946      
Operating expenses   92,593     91,265   1  
  (Loss) income before income taxes   (13,734 )   19,681      
Income tax (benefit) expense   (255,463 )   1,654      
  Net income   241,729     18,027      
Preferred dividends and discount accretion   6,107     6,062      
Net income available to common shareholders $ 235,622   $ 11,965      
                 
PERFORMANCE MEASURES                
  Per common share:                
    Diluted income $ 4.05   $ .21      
    Book value   10.90     6.61   65  
    Tangible book value (2)   10.82     6.48   67  
                   
  Key performance ratios:                
    Return on equity (1)(3)   108.34 %   6.12 %    
    Return on assets (3)   7.09     .52      
    Net interest margin (3)   3.34     3.48      
    Efficiency ratio   66.98     63.56      
    Equity to assets   8.90     8.26      
    Tangible equity to assets (2)   8.83     8.16      
    Tangible common equity to assets (2)   5.99     5.39      
    Tangible common equity to risk-weighted assets (2)   13.16     8.37      
                 
ASSET QUALITY *                
  Non-performing loans $ 27,864   $ 115,340      
  Foreclosed properties   3,936     30,421      
    Total non-performing assets (NPAs)   31,800     145,761      
  Allowance for loan losses   81,845     112,705      
  Net charge-offs   84,792     34,763      
  Allowance for loan losses to loans   1.95 %   2.74 %    
  Net charge-offs to average loans (3)   4.07     1.70      
  NPAs to loans and foreclosed properties   .76     3.51      
  NPAs to total assets   .44     2.16      
                 
AVERAGE BALANCES ($ in millions)                
  Loans $ 4,225   $ 4,162   2  
  Investment securities   2,151     2,149   -  
  Earning assets   6,578     6,682   (2 )
  Total assets   6,875     7,019   (2 )
  Deposits   5,964     5,940   -  
  Shareholders' equity   612     580   6  
  Common shares - basic (thousands)   58,111     57,803      
  Common shares - diluted (thousands)   58,111     57,803      
                 
AT PERIOD END ($ in millions)                
  Loans * $ 4,189   $ 4,119   2  
  Investment securities   2,152     1,984   8  
  Total assets   7,163     6,737   6  
  Deposits   6,012     5,822   3  
  Shareholders' equity   829     576   44  
  Common shares outstanding (thousands)   57,831     57,641      
     
(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 to reflect the full impact of the reversal of the valuation allowance on United's deferred tax asset. The period-end ratio is more indicative of the ratio going forward.
*   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  
   
   

(in thousands, except per share data; taxable equivalent)
  2013   2012  
Second
Quarter
    First
Quarter
  Fourth
Quarter
  Third
Quarter
  Second
Quarter
 
                                   
Interest revenue reconciliation                                  
Interest revenue - taxable equivalent   $ 61,693     $ 62,134   $ 64,450   $ 65,978   $ 66,780  
Taxable equivalent adjustment     (368 )     (365 )   (381 )   (419 )   (444 )
  Interest revenue (GAAP)   $ 61,325     $ 61,769   $ 64,069   $ 65,559   $ 66,336  
                                   
Net interest revenue reconciliation                                  
Net interest revenue - taxable equivalent   $ 54,562     $ 54,659   $ 56,028   $ 57,371   $ 56,836  
Taxable equivalent adjustment     (368 )     (365 )   (381 )   (419 )   (444 )
  Net interest revenue (GAAP)   $ 54,194     $ 54,294   $ 55,647   $ 56,952   $ 56,392  
                                   
Total revenue reconciliation                                  
Total operating revenue   $ 22,374     $ 56,485   $ 56,789   $ 55,635   $ 51,703  
Taxable equivalent adjustment     (368 )     (365 )   (381 )   (419 )   (444 )
  Total revenue (GAAP)   $ 22,006     $ 56,120   $ 56,408   $ 55,216   $ 51,259  
                                   
(Loss) income before taxes reconciliation                                  
(Loss) income before taxes   $ (26,449 )   $ 12,715   $ 6,063   $ 10,852   $ 7,393  
Taxable equivalent adjustment     (368 )     (365 )   (381 )   (419 )   (444 )
  (Loss) income before taxes (GAAP)   $ (26,817 )   $ 12,350   $ 5,682   $ 10,433   $ 6,949  
               
                    Income tax (benefit) expense reconciliation                                   Income tax (benefit) expense   $ (256,413 )   $ 950   $ 802   $ 284   $ 894   Taxable equivalent adjustment     (368 )     (365 )   (381 )   (419 )   (444 )   Income tax (benefit) expense (GAAP)   $ (256,781 )   $ 585   $ 421   $ (135 ) $ 450                                       Book value per common share reconciliation                                   Tangible book value per common share   $ 10.82     $ 6.76   $ 6.57   $ 6.64   $ 6.48   Effect of goodwill and other intangibles     .08       .09     .10     .11     .13     Book value per common share (GAAP)   $ 10.90     $ 6.85   $ 6.67   $ 6.75   $ 6.61                                       Average equity to assets reconciliation                                   Tangible common equity to assets     8.79 %     5.66 %   5.67 %   5.73 %   5.45 % Effect of preferred equity     2.74       2.87     2.88     2.93     2.79     Tangible equity to assets     11.53       8.53     8.55     8.66     8.24   Effect of goodwill and other intangibles     .04       .07     .08     .09     .09     Equity to assets (GAAP)     11.57 %     8.60 %   8.63 %   8.75 %   8.33 %                                     Tangible common equity to risk-weighted assets reconciliation                                   Tangible common equity to risk-weighted assets     13.16 %     8.45 %   8.26 %   8.44 %   8.37 % Effect of other comprehensive income     .29       .49     .51     .36     .28   Effect of deferred tax limitation     (4.99 )     -     -     -     -   Effect of trust preferred     1.11       1.15     1.15     1.17     1.19   Effect of preferred equity     4.11       4.22     4.24     4.29     4.35     Tier I capital ratio (Regulatory)     13.68 %     14.31 %   14.16 %   14.26 %   14.19 %                                    
 
 
UNITED COMMUNITY BANKS, INC. 
Non-GAAP Performance Measures Reconciliation 
Selected Financial Information 
 
  For the Six
Months Ended
 
(in thousands, except per sharedata; taxable equivalent) 2013     2012  
               
Interest revenue reconciliation              
Interest revenue - taxable equivalent $ 123,827     $ 137,001  
Taxable equivalent adjustment   (733 )     (890 )
  Interest revenue (GAAP) $ 123,094     $ 136,111  
               
Net interest revenue reconciliation              
Net interest revenue - taxable equivalent $ 109,221     $ 115,700  
Taxable equivalent adjustment   (733 )     (890 )
  Net interest revenue (GAAP) $ 108,488     $ 114,810  
               
Total revenue reconciliation              
Total operating revenue $ 78,859     $ 110,946  
Taxable equivalent adjustment   (733 )     (890 )
  Total revenue (GAAP) $ 78,126     $ 110,056  
               
(Loss) income before taxes reconciliation              
(Loss) income before taxes $ (13,734 )   $ 19,681  
Taxable equivalent adjustment   (733 )     (890 )
  (Loss) income before taxes (GAAP) $ (14,467 )   $ 18,791  
               
Income tax (benefit) expense reconciliation              
Income tax (benefit) expense $ (255,463 )   $ 1,654  
Taxable equivalent adjustment   (733 )     (890 )
  Income tax (benefit) expense (GAAP) $ (256,196 )   $ 764  
               
Book value per common share reconciliation              
Tangible book value per common share $ 10.82     $ 6.48  
Effect of goodwill and other intangibles   .08       .13  
  Book value per common share (GAAP) $ 10.90     $ 6.61  
               
Average equity to assets reconciliation              
Tangible common equity to assets   5.99 %     5.39 %
Effect of preferred equity   2.84       2.77  
  Tangible equity to assets   8.83       8.16  
Effect of goodwill and other intangibles   .07       .10  
  Equity to assets (GAAP)   8.90 %     8.26 %
               
Tangible common equity to risk-weighted assets reconciliation              
Tangible common equity to risk-weighted assets   13.16 %     8.37 %
Effect of other comprehensive income   .29       .28  
Effect of deferred tax limitation   (4.99 )     -  
Effect of trust preferred   1.11       1.19  
Effect of preferred equity   4.11       4.35  
  Tier I capital ratio (Regulatory)   13.68 %     14.19 %
               
 
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
 
    2013   2012
(in millions) Second
Quarter
  First
Quarter
  Fourth
Quarter
  Third
Quarter
  Second
Quarter
LOANS BY CATEGORY                              
Owner occupied commercial RE   $ 1,119   $ 1,130   $ 1,131   $ 1,126   $ 1,140
Income producing commercial RE     629     674     682     693     697
Commercial & industrial     437     454     458     460     450
Commercial construction     133     152     155     161     169
  Total commercial     2,318     2,410     2,426     2,440     2,456
Residential mortgage     876     850     829     833     834
Home equity lines of credit     402     396     385     341     294
Residential construction     332     372     382     389     409
Consumer installment     261     166     153     135     126
  Total loans   $ 4,189   $ 4,194   $ 4,175   $ 4,138   $ 4,119
                               
LOANS BY MARKET                              
North Georgia   $ 1,265   $ 1,363   $ 1,364   $ 1,383   $ 1,387
Atlanta MSA     1,227     1,262     1,250     1,238     1,242
North Carolina     576     575     579     579     576
Coastal Georgia     397     398     400     380     369
Gainesville MSA     256     259     261     256     259
East Tennessee     282     282     283     283     276
South Carolina     34     -     -     -     -
Other (2)     152     55     38     19     10
  Total loans   $ 4,189   $ 4,194   $ 4,175   $ 4,138   $ 4,119
                               
RESIDENTIAL CONSTRUCTION                        
Dirt loans                              
  Acquisition & development   $ 42   $ 57   $ 62   $ 71   $ 78
  Land loans     36     42     46     41     45
  Lot loans     173     188     193     196     203
    Total     251     287     301     308     326
                               
House loans                              
  Spec     34     40     41     44     49
  Sold     47     45     40     37     34
    Total     81     85     81     81     83
Total residential construction   $ 332   $ 372   $ 382   $ 389   $ 409
                               
(1) Excludes total loans of $25.7 million, $28.3 million, $33.4 million, $37.0 million and $41.5 million as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 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)   Second
Quarter
  First
Quarter
  Second
Quarter
     Linked
Quarter
Change
  Year
over
Year
Change
 
LOANS BY CATEGORY                                  
Owner occupied commercial RE   $ 1,119   $ 1,130   $ 1,140   $ (11 )   $ (21 )
Income producing commercial RE     629     674     697     (45 )     (68 )
Commercial & industrial     437     454     450     (17 )     (13 )
Commercial construction     133     152     169     (19 )     (36 )
  Total commercial     2,318     2,410     2,456     (92 )     (138 )
Residential mortgage     876     850     834     26       42  
Home equity lines of credit     402     396     294     6       108  
Residential construction     332     372     409     (40 )     (77 )
Consumer installment     261     166     126     95       135  
  Total loans   $ 4,189   $ 4,194   $ 4,119     (5 )     70  
                                   
LOANS BY MARKET                                  
North Georgia   $ 1,265   $ 1,363   $ 1,387     (98 )     (122 )
Atlanta MSA     1,227     1,262     1,242     (35 )     (15 )
North Carolina     576     575     576     1       -  
Coastal Georgia     397     398     369     (1 )     28  
Gainesville MSA     256     259     259     (3 )     (3 )
East Tennessee     282     282     276     -       6  
South Carolina     34     -     -     34       34  
Other (2)     152     55     10     97       142  
  Total loans   $ 4,189   $ 4,194   $ 4,119     (5 )     70  
                                   
RESIDENTIAL CONSTRUCTION                            
Dirt loans                                  
  Acquisition & development   $ 42   $ 57   $ 78     (15 )     (36 )
  Land loans     36     42     45     (6 )     (9 )
  Lot loans     173     188     203     (15 )     (30 )
    Total     251     287     326     (36 )     (75 )
                                   
House loans                                  
  Spec     34     40     49     (6 )     (15 )
  Sold     47     45     34     2       13  
    Total     81     85     83     (4 )     (2 )
Total residential construction   $ 332   $ 372   $ 409     (40 )     (77 )
                                   
     
(1)   Excludes total loans of $25.7 million, $28.3 million, $33.4 million, $37.0 million and $41.5 million as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 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
Credit Quality(1)
 
    Second Quarter 2013  
 
(in thousands)
  Non-performing
Loans
    Foreclosed
Properties
    Total
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 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)  
                   
                   
    First Quarter 2013  

(in thousands)
  Non-performing
Loans
    Foreclosed
Properties
    Total
NPAs
 
NONPERFORMING ASSETS BY CATEGORY              
Owner occupied CRE   $ 8,142     $ 4,750     $ 12,892  
Income producing CRE     9,162       834       9,996  
Commercial & industrial     29,545       -       29,545  
Commercial construction     22,359       3,027       25,386  
  Total commercial     69,208       8,611       77,819  
Residential mortgage     10,901       3,463       14,364  
Home equity lines of credit     916       -       916  
Residential construction     14,592       4,660       19,252  
Consumer installment     389       -       389  
  Total NPAs   $ 96,006     $ 16,734     $ 112,740  
  Balance as a % of Unpaid Principal     66.3 %     45.0 %     62.0 %
                         
NONPERFORMING ASSETS BY MARKET                  
North Georgia   $ 63,210     $ 6,616     $ 69,826  
Atlanta MSA     17,380       3,524       20,904  
North Carolina     8,519       2,533       11,052  
Coastal Georgia     3,523       1,449       4,972  
Gainesville MSA     911       370       1,281  
East Tennessee     2,463       2,242       4,705  
South Carolina     -       -       -  
Other (3)     -       -       -  
  Total NPAs   $ 96,006     $ 16,734     $ 112,740  
                         
NONPERFORMING ASSETS ACTIVITY                  
Beginning Balance   $ 109,894     $ 18,264     $ 128,158  
Loans placed on non-accrual     9,665       -       9,665  
Payments received     (6,809 )     -       (6,809 )
Loan charge-offs     (10,456 )     -       (10,456 )
Foreclosures     (6,288 )     6,288       -  
Capitalized costs     -       54       54  
Property sales     -       (6,726 )     (6,726 )
Write downs     -       (1,041 )     (1,041 )
Net losses on sales     -       (105 )     (105 )
  Ending Balance   $ 96,006     $ 16,734     $ 112,740  
                         
     
(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 2012  

(in thousands)
  Non-performing
Loans
    Foreclosed
Properties
    Total
NPAs
 
NONPERFORMING ASSETS BY CATEGORY              
Owner occupied CRE   $ 12,599     $ 4,989     $ 17,588  
Income producing CRE     9,549       490       10,039  
Commercial & industrial     31,817       -       31,817  
Commercial construction     23,843       2,204       26,047  
  Total commercial     77,808       7,683       85,491  
Residential mortgage     11,151       4,753       15,904  
Home equity lines of credit     1,438       -       1,438  
Residential construction     18,702       5,828       24,530  
Consumer installment     795       -       795  
  Total NPAs   $ 109,894     $ 18,264     $ 128,158  
  Balance as a % of Unpaid Principal     69.5 %     39.7 %     62.8 %
                         
NONPERFORMING ASSETS BY MARKET                  
North Georgia   $ 69,950     $ 8,219     $ 78,169  
Atlanta MSA     18,556       3,442       21,998  
North Carolina     11,014       2,579       13,593  
Coastal Georgia     3,810       1,609       5,419  
Gainesville MSA     903       556       1,459  
East Tennessee     5,661       1,859       7,520  
South Carolina     -       -       -  
Other (3)     -       -       -  
  Total NPAs   $ 109,894     $ 18,264     $ 128,158  
                         
NONPERFORMING ASSETS ACTIVITY                  
Beginning Balance   $ 115,001     $ 26,958     $ 141,959  
Loans placed on non-accrual     20,211       -       20,211  
Payments received     (6,458 )     -       (6,458 )
Loan charge-offs     (11,722 )     -       (11,722 )
Foreclosures     (7,138 )     7,138       -  
Capitalized costs     -       201       201  
Property sales     -       (12,845 )     (12,845 )
Write downs     -       (1,438 )     (1,438 )
Net losses on sales     -       (1,750 )     (1,750 )
  Ending Balance   $ 109,894     $ 18,264     $ 128,158  
                           
     
(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     First Quarter 2013     Fourth Quarter 2012  



(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   $ 16,545   5.85 %   $ 1,922     .69 %   $ 4,997   1.76 %
Income producing CRE     8,921   5.45       3,321     1.99       1,153   .67  
Commercial & industrial     15,576   13.91       1,501     1.34       135   .12  
Commercial construction     6,295   17.53       (4 )   (.01 )     1,688   4.25  
    Total commercial     47,337   7.96       6,740     1.14       7,973   1.30  
Residential mortgage     5,469   2.52       1,635     .79       3,254   1.55  
Home equity lines of credit     1,040   1.04       512     .53       445   .49  
Residential construction     18,506   20.91       2,973     3.22       2,435   2.52  
Consumer installment     56   .10       524     1.35       398   1.10  
  Total   $ 72,408   6.87     $ 12,384     1.21     $ 14,505   1.39  
                                       
NET CHARGE-OFFS BY MARKET                                
North Georgia   $ 59,102   17.20 %   $ 4,868     1.45 %   $ 4,458   1.29 %
Atlanta MSA     9,986   3.21       3,295     1.07       3,977   1.27  
North Carolina     1,952   1.36       2,249     1.59       2,032   1.39  
Coastal Georgia     480   .49       821     .85       574   .60  
Gainesville MSA     123   .19       430     .67       1,331   2.04  
East Tennessee     711   1.01       679     .98       2,117   2.98  
South Carolina     -   -       -     -       -   -  
Other (3)     54   .24       42     .39       16   .19  
  Total   $ 72,408   6.87     $ 12,384     1.21     $ 14,505   1.39  
                                         
     
 (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 Operations (Unaudited)  
                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
(in thousands, except per share data)   2013     2012     2013     2012  
                                 
Interest revenue:                                
  Loans, including fees   $ 50,728     $ 54,178     $ 101,662     $ 109,937  
  Investment securities, including tax exempt of $210, $262, $422 and $512     9,681       11,062       19,646       24,066  
  Deposits in banks and short-term investments     916       1,096       1,786       2,108  
      Total interest revenue     61,325       66,336       123,094       136,111  
                                 
Interest expense:                                
  Deposits:                                
    NOW     419       503       873       1,140  
    Money market     534       661       1,096       1,302  
    Savings     36       38       72       75  
    Time     2,924       5,073       6,150       11,232  
      Total deposit interest expense     3,913       6,275       8,191       13,749  
  Short-term borrowings     522       904       1,038       1,949  
  Federal Home Loan Bank advances     30       390       49       856  
  Long-term debt     2,666       2,375       5,328       4,747  
    Total interest expense     7,131       9,944       14,606       21,301  
    Net interest revenue     54,194       56,392       108,488       114,810  
  Provision for loan losses     48,500       18,000       59,500       33,000  
    Net interest revenue after provision for loan losses     5,694       38,392       48,988       81,810  
                                 
Fee revenue:                                
  Service charges and fees     7,972       7,816       15,375       15,599  
  Mortgage loan and other related fees     3,003       2,322       5,658       4,421  
  Brokerage fees     1,063       809       1,830       1,622  
  Securities gains, net     -       6,490       116       7,047  
  Loss from prepayment of debt     -       (6,199 )     -       (6,681 )
  Other     4,274       1,629       6,159       6,238  
    Total fee revenue     16,312       12,867       29,138       28,246  
    Total revenue     22,006       51,259       78,126       110,056  
                                 
Operating expenses:                                
  Salaries and employee benefits     24,734       24,297       48,326       49,522  
  Communications and equipment     3,468       3,211       6,514       6,366  
  Occupancy     3,449       3,539       6,816       7,310  
  Advertising and public relations     1,037       1,088       1,975       1,934  
  Postage, printing and supplies     894       916       1,757       1,895  
  Professional fees     2,499       1,952       4,865       3,927  
  Foreclosed property     5,151       1,851       7,484       5,676  
  FDIC assessments and other regulatory charges     2,505       2,545       5,010       5,055  
  Amortization of intangibles     491       730       1,196       1,462  
  Other     4,595       4,181       8,650       8,118  
    Total operating expenses     48,823       44,310       92,593       91,265  
    Net (loss) income before income taxes     (26,817 )     6,949       (14,467 )     18,791  
  Income tax (benefit) expense     (256,781 )     450       (256,196 )     764  
    Net income     229,964       6,499       241,729       18,027  
  Preferred stock dividends and discount accretion     3,055       3,032       6,107       6,062  
    Net income available to common shareholders   $ 226,909     $ 3,467     $ 235,622     $ 11,965  
                                 
Earnings per common share - basic / diluted   $ 3.90     $ .06     $ 4.05     $ .21  
Weighted average common shares outstanding - basic / diluted     58,141       57,840       58,111       57,803  
                                 
                                 
                 
UNITED COMMUNITY BANKS, INC.  
Consolidated Balance Sheet  
                 
 
(in thousands, except share and per share data)
June 30,
2013
 
 
  December 31,
2012
 
 
  June 30,
2012
 
 
  (unaudited)     (audited)     (audited)  
ASSETS                      
  Cash and due from banks $ 62,564     $ 66,536     $ 50,596  
  Interest-bearing deposits in banks   141,016       124,613       133,857  
  Short-term investments   57,000       60,000       120,000  
    Cash and cash equivalents   260,580       251,149       304,453  
  Securities available for sale   1,937,264       1,834,593       1,701,583  
  Securities held to maturity (fair value $226,695, $261,131 and $299,971)   214,947       244,184       282,750  
  Mortgage loans held for sale   19,150       28,821       18,645  
  Loans, net of unearned income   4,189,368       4,175,008       4,119,235  
    Less allowance for loan losses   (81,845 )     (107,137 )     (112,705 )
      Loans, net   4,107,523       4,067,871       4,006,530  
  Assets covered by loss sharing agreements with the FDIC   35,675       47,467       65,914  
  Premises and equipment, net   167,197       168,920       172,200  
  Bank owned life insurance   82,276       81,867       81,265  
  Accrued interest receivable   19,279       18,659       20,151  
  Goodwill and other intangible assets   4,315       5,510       6,965  
  Foreclosed property   3,936       18,264       30,421  
  Net deferred tax asset   272,287       -       -  
  Other assets   38,206       34,954       46,229  
    Total assets $ 7,162,635     $ 6,802,259     $ 6,737,106  
LIABILITIES AND SHAREHOLDERS' EQUITY                      
Liabilities:                      
  Deposits:                      
    Demand $ 1,349,804     $ 1,252,605     $ 1,150,444  
    NOW   1,225,664       1,316,453       1,196,507  
    Money market   1,167,889       1,149,912       1,117,139  
    Savings   247,821       227,308       219,077  
    Time:                      
      Less than $100,000   982,009       1,055,271       1,164,451  
      Greater than $100,000   664,112       705,558       764,343  
    Brokered   374,530       245,033       210,506  
        Total deposits   6,011,829       5,952,140       5,822,467  
  Short-term borrowings   54,163       52,574       53,656  
  Federal Home Loan Bank advances   70,125       40,125       125,125  
  Long-term debt   124,845       124,805       120,265  
  Accrued expenses and other liabilities   72,370       51,210       39,598  
    Total liabilities   6,333,332       6,220,854       6,161,111  
Shareholders' equity:                      
  Preferred stock, $1 par value; 10,000,000 shares authorized;                      
    Series A; $10 stated value; 21,700 shares issued and outstanding   217       217       217  
    Series B; $1,000 stated value; 180,000 shares issued and outstanding   179,323       178,557       177,814  
    Series D; $1,000 stated value; 16,613 shares issued and outstanding   16,613       16,613       16,613  
  Common stock, $1 par value; 100,000,000 shares authorized; 43,356,492, 42,423,870 and 41,726,509 shares issued and outstanding   43,356       42,424       41,727  
  Common stock, non-voting, $1 par value; 30,000,000 shares authorized; 14,474,810, 15,316,794 and 15,914,209 shares issued and outstanding   14,475       15,317       15,914  
  Common stock issuable; 271,215, 133,238 and 94,657 shares   4,705       3,119       2,893  
  Capital surplus   1,057,931       1,057,951       1,056,819  
  Accumulated deficit   (473,531 )     (709,153 )     (718,896 )
  Accumulated other comprehensive loss   (13,786 )     (23,640 )     (17,106 )
    Total shareholders' equity   829,303       581,405       575,995  
    Total liabilities and shareholders' equity $ 7,162,635     $ 6,802,259     $ 6,737,106  
                       
                       
                                   
UNITED COMMUNITY BANKS, INC.  
Average Consolidated Balance Sheets and Net Interest Analysis  
For the Three Months Ended June 30,  
                                   
    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)   $ 4,253,361     $ 50,806     4.79 %   $ 4,155,619     $ 54,296   5.25 %
  Taxable securities (3)     2,139,221       9,471     1.77       2,121,053       10,800   2.04  
  Tax-exempt securities (1)(3)     21,597       344     6.37       24,242       429   7.08  
  Federal funds sold and other interest-earning assets     193,370       1,072     2.22       364,099       1,255   1.38  
                                             
    Total interest-earning assets     6,607,549       61,693     3.74       6,665,013       66,780   4.03  
Non-interest-earning assets:                                          
  Allowance for loan losses     (106,417 )                   (115,955 )            
  Cash and due from banks     63,457                     51,907              
  Premises and equipment     168,272                     173,792              
  Other assets (3)     181,987                     218,347              
    Total assets   $ 6,914,848                   $ 6,993,104              
                                           
Liabilities and Shareholders' Equity:                                          
Interest-bearing liabilities:                                          
  Interest-bearing deposits:                                          
    NOW   $ 1,245,301       419     .13     $ 1,279,686       503   .16  
    Money market     1,306,522       534     .16       1,132,548       661   .23  
    Savings     245,211       36     .06       216,175       38   .07  
    Time less than $100,000     1,000,511       1,568     .63       1,183,845       2,520   .86  
    Time greater than $100,000     674,200       1,380     .82       778,477       2,063   1.07  
    Brokered time deposits     195,182       (24 )   (.05 )     150,449       490   1.31  
      Total interest-bearing deposits     4,666,927       3,913     .34       4,741,180       6,275   .53  
                                           
    Federal funds purchased and other borrowings     72,139       522     2.90       97,134       904   3.74  
    Federal Home Loan Bank advances     58,916       30     .20       278,971       390   .56  
    Long-term debt     124,838       2,666     8.57       120,256       2,375   7.94  
      Total borrowed funds     255,893       3,218     5.04       496,361       3,669   2.97  
                                           
      Total interest-bearing liabilities     4,922,820       7,131     .58       5,237,541       9,944   .76  
Non-interest-bearing liabilities:                                          
  Non-interest-bearing deposits     1,315,812                     1,112,128              
  Other liabilities     40,603                     60,726              
      Total liabilities     6,279,235                     6,410,395              
Shareholders' equity     635,613                     582,709              
      Total liabilities and shareholders' equity   $ 6,914,848                   $ 6,993,104              
                                           
Net interest revenue           $ 54,562                   $ 56,836      
Net interest-rate spread                   3.16 %                 3.27 %
                                           
Net interest margin (4)                   3.31 %                 3.43 %
                                           
     
(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 $17.7 million in 2013 and $25.7 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 Six Months Ended June 30,
                             
    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)   $ 4,225,215   $ 101,805   4.86 %   $ 4,162,030   $ 110,138   5.32 %
  Taxable securities (3)     2,129,208     19,224   1.81       2,124,422     23,554   2.22  
  Tax-exempt securities (1)(3)     21,665     691   6.38       24,840     839   6.76  
  Federal funds sold and other interest-earning assets     201,478     2,107   2.09       371,044     2,470   1.33  
                                     
    Total interest-earning assets     6,577,566     123,827   3.79       6,682,336     137,001   4.12  
Non-interest-earning assets:                                    
  Allowance for loan losses     (108,667               (116,879          
  Cash and due from banks     63,873                 53,286            
  Premises and equipment     168,773                 174,321            
  Other assets (3)     173,168                 226,013            
    Total assets   $ 6,874,713               $ 7,019,077            
                                     
Liabilities and Shareholders' Equity:                                    
Interest-bearing liabilities:                                    
  Interest-bearing deposits:                                    
    NOW   $ 1,274,144     873   .14     $ 1,368,900     1,140   .17  
    Money market     1,282,101     1,096   .17       1,101,103     1,302   .24  
    Savings     239,691     72   .06       210,789     75   .07  
    Time less than $100,000     1,020,000     3,317   .66       1,227,599     5,546   .91  
    Time greater than $100,000     684,320     2,857   .84       799,821     4,478   1.13  
    Brokered time deposits     185,210     (24 (.03     155,892     1,208   1.56  
      Total interest-bearing deposits     4,685,466     8,191   .35       4,864,104     13,749   .57  
                                       
    Federal funds purchased and other borrowings     72,148     1,038   2.90       99,696     1,949   3.93  
    Federal Home Loan Bank advances     46,064     49   .21       208,672     856   .82  
    Long-term debt     124,827     5,328   8.61       120,246     4,747   7.94  
      Total borrowed funds     243,039     6,415   5.32       428,614     7,552   3.54  
                                       
      Total interest-bearing liabilities     4,928,505     14,606   .60       5,292,718     21,301   .81  
Non-interest-bearing liabilities:                                    
  Non-interest-bearing deposits     1,278,875                 1,076,358            
  Other liabilities     55,639                 70,330            
    Total liabilities     6,263,019                 6,439,406            
Shareholders' equity     611,694                 579,671            
    Total liabilities and shareholders' equity   $ 6,874,713               $ 7,019,077            
                                     
Net interest revenue         $ 109,221               $ 115,700      
Net interest-rate spread               3.19 %               3.31 %
                                     
Net interest margin (4)               3.34 %               3.48 %
                                     
     
(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 $17.4 million in 2013 and $24.7 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.
     
     
Contact:
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Email Contact

View Comments (0)