United Community Banks, Inc. Reports Earnings of $16.4 Million for Second Quarter 2014

Marketwired

BLAIRSVILLE, GA --(Marketwired - July 24, 2014) - United Community Banks, Inc. ( UCBI )

  • Earnings per diluted share of 27 cents, up 8 percent from first quarter
  • Loans up $54 million, or 5 percent annualized
  • Core transaction deposits up $52 million, or 6 percent annualized
  • SBA lending team added to expand business

United Community Banks, Inc.  ( UCBI )  ("United") today reported net income of $16.4 million, or 27 cents per diluted share, for the second quarter of 2014. Earnings per share were up 8 percent from the first quarter, reflecting growth in net interest revenue and fee revenue, a lower provision for loan losses and the elimination of preferred stock dividends. For the first six months, United reported net income of $31.8 million, or 52 cents per diluted share.

"I am very pleased with our second quarter progress in growing our business and earnings," said Jimmy Tallent, president and chief executive officer. "We have had four consecutive quarters of steady earnings per share growth since the classified asset sales a year ago and are focused on continuing that trend."

Second quarter taxable equivalent net interest revenue totaled $55.0 million, up $781,000 from the first quarter and the same as the second quarter of 2013. The taxable equivalent net interest margin was 3.21 percent, equal to the first quarter and down 12 basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue while also managing our exposure to changes in interest rates are top priorities for continued growth in earnings per share," said Tallent. "We remain sharply focused on growing loans and core deposits to increase net interest revenue. During the second quarter we completed certain balance sheet restructuring activities that included the reduction/restructuring of the securities portfolio, interest rate hedges and wholesale borrowings. The consequential changes in our securities portfolio, wholesale borrowings and interest rate hedges allowed us to maintain our margin at 3.21 percent and prevent further margin decline in 2014, while maintaining our interest rate risk and sensitivity levels. We sold $237 million in investment securities at a gain of $4.4 million, which was offset by a similar charge from the repayment of $44 million in costly structured wholesale borrowings."

The second quarter provision for credit losses was $2.2 million, down $300,000 from the first quarter and down $46.3 million from the second quarter of 2013. Second quarter net charge-offs were $4.18 million, compared with $4.04 million in the first quarter and $72.4 million a year ago. Nonperforming assets at quarter-end were $23.7 million, down 23 percent from the first quarter and representing .32 percent of total assets. This compares to .42 percent at the end of the first quarter, and .44 percent at the end of the second quarter of 2013.

Second quarter fee revenue totaled $14.1 million, up $1.97 million from the first quarter with increases in every category. When compared to a year earlier, fee revenue was down $1.80 million primarily due to lower mortgage fees and a $1.37 million gain last year on a bank-owned life insurance policy. Service charges and fees were up approximately $600,000 from both the first quarter and a year ago due to strong debit card transaction volume and new service fees effective January 1. Mortgage fees were up $523,000 from the first quarter but down $1.13 million from a year ago, the decrease reflecting slower mortgage refinancing activity. Closed mortgage loans totaled $68.5 million in the second quarter, compared with $46.0 million in the first quarter and $95.2 million in the second quarter of 2013. Customer swap fees included in other fee revenue were up $357,000 from the first quarter due to an increase in commercial lending activities. Also included in other fee revenue were gains on the sale of SBA loans of $744,000. "Going forward, our new focus on growing our SBA business includes selling loans and taking the related gains, while retaining servicing on the loans sold," commented Tallent.

Operating expenses, excluding foreclosed property costs, were $40.4 million in the second quarter compared to $38.9 million in the first quarter and $43.7 million a year ago. Decreases in nearly every expense category from a year ago reflect successful efforts to control operating costs. The $1.48 million increase from the first quarter was mostly in advertising and public relations, professional fees and other expenses that included a number of non-core costs. The increase in advertising and public relations primarily reflects the cost for new products and updating brochures and other branded materials. The increase in professional fees is due to higher legal and consulting costs resulting from corporate initiatives. The increase in other expenses primarily reflects higher lending support costs and a $367,000 loss from the consolidation and sale of a branch facility.

Foreclosed property costs were $102,000 in the second quarter compared to $116,000 in the first quarter and $5.15 million a year ago. These costs were elevated in the second quarter of 2013 by the accelerated sales of classified assets.

On June 30, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.8 percent; Total Risk-Based of 13.0 percent; Tier 1 Common Risk-Based of 10.7 percent; Tier 1 Leverage of 8.3 percent; and Tangible Equity-to-Assets of 9.6 percent.

"We had a solid start in 2014 and continued to build momentum through the second quarter," Tallent said. "Stabilizing our net interest margin and growing loans, deposits and fee revenue will drive earnings growth. To that end, we continue to expand our business capabilities and have added senior people to our commercial and specialized lending groups. In the second quarter we completed the acquisition of a specialty SBA business in Columbia, South Carolina, and added a newly formed SBA national sales team led by Rich Bradshaw, who has a long record of success in SBA and other specialized lending areas. This team will significantly strengthen our SBA and USDA lending capabilities within and beyond our existing footprint. I am excited about the opportunities ahead and remain convinced we are on track to achieve our business targets and financial goals for the year."

Conference Call
United will hold a conference call today, Thursday, July 24, 2014, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 60193841. 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.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.4 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com .

Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2013 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors." Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
 
                Second
    2014     2013     Quarter
(in thousands, except per share   Second     First     Fourth     Third     Second     2014-2013
data; taxable equivalent)   Quarter     Quarter     Quarter     Quarter     Quarter     Change
INCOME SUMMARY                                                
Interest revenue   $ 61,783     $ 60,495     $ 61,695     $ 61,426     $ 62,088          
Interest expense     6,833       6,326       5,816       7,169       7,157          
    Net interest revenue     54,950       54,169       55,879       54,257       54,931       - %
Provision for credit losses     2,200       2,500       3,000       3,000       48,500          
Fee revenue     14,143       12,176       13,519       14,225       15,943       (11 )
    Total revenue     66,893       63,845       66,398       65,482       22,374          
Operating expenses     40,532       39,050       41,614       40,097       48,823       (17 )
  Income (loss) before income taxes     26,361       24,795       24,784       25,385       (26,449 )        
Income tax expense (benefit)     10,004       9,395       8,873       9,885       (256,413 )        
    Net income     16,357       15,400       15,911       15,500       229,964          
Preferred dividends and discount accretion     -       439       2,912       3,059       3,055          
Net income available to common shareholders   $ 16,357     $ 14,961     $ 12,999     $ 12,441     $ 226,909          
                                                 
PERFORMANCE MEASURES                                                
  Per common share:                                                
    Diluted income   $ .27     $ .25     $ .22     $ .21     $ 3.90          
    Book value     11.94       11.66       11.30       10.99       10.90       10  
    Tangible book value (2)     11.91       11.63       11.26       10.95       10.82       10  
                                                 
  Key performance ratios:                                                
    Return on common equity (1)(3)     8.99 %     8.64 %     7.52 %     7.38 %     197.22 %        
    Return on assets (3)     .88       .85       .86       .86       13.34          
    Net interest margin (3)     3.21       3.21       3.26       3.26       3.33          
    Efficiency ratio     58.65       59.05       60.02       58.55       68.89          
    Equity to assets     9.61       9.52       11.62       11.80       11.57     (4)    
    Tangible equity to assets (2)     9.58       9.50       11.59       11.76       11.53     (4)    
    Tangible common equity to assets (2)     9.58       9.22       8.99       9.02       8.79     (4)    
    Tangible common equity to risk- weighted assets (2)     13.92       13.63       13.18       13.34       13.16          
                                                 
ASSET QUALITY *                                                
  Non-performing loans   $ 20,724     $ 25,250     $ 26,819     $ 26,088     $ 27,864          
  Foreclosed properties     2,969       5,594       4,221       4,467       3,936          
    Total non-performing assets (NPAs)     23,693       30,844       31,040       30,555       31,800          
  Allowance for loan losses     73,248       75,223       76,762       80,372       81,845          
  Net charge-offs     4,175       4,039       4,445       4,473       72,408          
  Allowance for loan losses to loans     1.66 %     1.73 %     1.77 %     1.88 %     1.95 %        
  Net charge-offs to average loans (3)     .38       .38       .41       .42       6.87          
  NPAs to loans and foreclosed properties     .54       .71       .72       .72       .76          
  NPAs to total assets     .32       .42       .42       .42       .44          
                                                 
AVERAGE BALANCES ($ in millions)                                                
  Loans   $ 4,376     $ 4,356     $ 4,315     $ 4,250     $ 4,253       3  
  Investment securities     2,326       2,320       2,280       2,178       2,161       8  
  Earning assets     6,861       6,827       6,823       6,615       6,608       4  
  Total assets     7,418       7,384       7,370       7,170       6,915       7  
  Deposits     6,187       6,197       6,190       5,987       5,983       3  
  Shareholders' equity     713       703       856       846       636       12  
  Common shares - basic (thousands)     60,712       60,059       59,923       59,100       58,141          
  Common shares - diluted (thousands)     60,714       60,061       59,925       59,202       58,141          
                                                 
AT PERIOD END ($ in millions)                                                
  Loans *   $ 4,410     $ 4,356     $ 4,329     $ 4,267     $ 4,189       5  
  Investment securities     2,190       2,302       2,312       2,169       2,152       2  
  Total assets     7,352       7,398       7,425       7,243       7,163       3  
  Deposits     6,164       6,248       6,202       6,113       6,012       3  
  Shareholders' equity     722       704       796       852       829       (13 )
  Common shares outstanding (thousands)     60,139       60,092       59,432       59,412       57,831          
                                                 
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end.
 
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
 
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
 
  For the Six    
  Months Ended   YTD
(in thousands, except per share June 30,   2014-2013
data; taxable equivalent) 2014   2013   Change
INCOME SUMMARY                
Interest revenue $ 122,278   $ 124,202      
Interest expense   13,159     14,697      
    Net interest revenue   109,119     109,505   - %
Provision for credit losses   4,700     59,500      
Fee revenue   26,319     28,854   (9 )
    Total revenue   130,738     78,859      
Operating expenses   79,582     92,593   (14 )
    Income (loss) before income taxes   51,156     (13,734 )    
Income tax expense (benefit)   19,399     (255,463 )    
    Net income   31,757     241,729      
Preferred dividends and discount accretion   439     6,107      
Net income available to common shareholders $ 31,318   $ 235,622      
                 
PERFORMANCE MEASURES                
  Per common share:                
    Diluted income $ .52   $ 4.05      
    Book value   11.94     10.90   10  
    Tangible book value (2)   11.91     10.82   10  
                 
  Key performance ratios:                
    Return on common equity (1)(3)   8.82 %   108.34 %    
    Return on assets (3)   .87     7.09      
    Net interest margin (3)   3.21     3.35      
    Efficiency ratio   58.85     66.98      
    Equity to assets   9.56     8.90      
    Tangible equity to assets (2)   9.54     8.83      
    Tangible common equity to assets (2)   9.40     5.99      
    Tangible common equity to risk- weighted assets (2)   13.92     13.16      
                 
ASSET QUALITY *                
  Non-performing loans $ 20,724   $ 27,864      
  Foreclosed properties   2,969     3,936      
    Total non-performing assets (NPAs)   23,693     31,800      
  Allowance for loan losses   73,248     81,845      
  Net charge-offs   8,214     84,792      
  Allowance for loan losses to loans   1.66 %   1.95 %    
  Net charge-offs to average loans (3)   .38     4.07      
  NPAs to loans and foreclosed properties   .54     .76      
  NPAs to total assets   .32     .44      
                 
AVERAGE BALANCES ($ in millions)                
  Loans $ 4,366   $ 4,225   3  
  Investment securities   2,323     2,151   8  
  Earning assets   6,844     6,578   4  
  Total assets   7,401     6,875   8  
  Deposits   6,192     5,964   4  
  Shareholders' equity   708     612   16  
  Common shares - basic (thousands)   60,386     58,111      
  Common shares - diluted (thousands)   60,388     58,111      
                 
AT PERIOD END ($ in millions)                
  Loans * $ 4,410   $ 4,189   5  
  Investment securities   2,190     2,152   2  
  Total assets   7,352     7,163   3  
  Deposits   6,164     6,012   3  
  Shareholders' equity   722     829   (13 )
  Common shares outstanding (thousands)   60,139     57,831      
                 
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) Calculated as of period-end.
                 
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
...
 
 
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
 
 
  2014   2013  
(in thousands, except per share Second   First   Fourth   Third   Second  
data; taxable equivalent) Quarter   Quarter   Quarter   Quarter   Quarter  
                               
Interest revenue reconciliation                              
Interest revenue - taxable equivalent $ 61,783   $ 60,495   $ 61,695   $ 61,426   $ 62,088  
Taxable equivalent adjustment   (377 )   (357 )   (380 )   (370 )   (368 )
  Interest revenue (GAAP) $ 61,406   $ 60,138   $ 61,315   $ 61,056   $ 61,720  
                               
Net interest revenue reconciliation                              
Net interest revenue - taxable equivalent $ 54,950   $ 54,169   $ 55,879   $ 54,257   $ 54,931  
Taxable equivalent adjustment   (377 )   (357 )   (380 )   (370 )   (368 )
  Net interest revenue (GAAP) $ 54,573   $ 53,812   $ 55,499   $ 53,887   $ 54,563  
                               
Total revenue reconciliation                              
Total operating revenue $ 66,893   $ 63,845   $ 66,398   $ 65,482   $ 22,374  
Taxable equivalent adjustment   (377 )   (357 )   (380 )   (370 )   (368 )
  Total revenue (GAAP) $ 66,516   $ 63,488   $ 66,018   $ 65,112   $ 22,006  
                               
Income (loss) before taxes reconciliation                              
Income (loss) before taxes $ 26,361   $ 24,795   $ 24,784   $ 25,385   $ (26,449 )
Taxable equivalent adjustment   (377 )   (357 )   (380 )   (370 )   (368 )
  Income (loss) before taxes (GAAP) $ 25,984   $ 24,438   $ 24,404   $ 25,015   $ (26,817 )
                               
Income tax expense (benefit) reconciliation                              
Income tax expense (benefit) $ 10,004   $ 9,395   $ 8,873   $ 9,885   $ (256,413 )
Taxable equivalent adjustment   (377 )   (357 )   (380 )   (370 )   (368 )
  Income tax expense (benefit) (GAAP) $ 9,627   $ 9,038   $ 8,493   $ 9,515   $ (256,781 )
                               
Book value per common share reconciliation                              
Tangible book value per common share $ 11.91   $ 11.63   $ 11.26   $ 10.95   $ 10.82  
Effect of goodwill and other intangibles   .03     .03     .04     .04     .08  
 Book value per common share (GAAP) $11.94   $11.66   $11.30   $10.99   $10.90  
                          
Average equity to assets reconciliation                         
Tangible common equity to assets  9.58 %  9.22 %  8.99 %  9.02 %  8.79 %
Effect of preferred equity  -    .28    2.60    2.74    2.74  
 Tangible equity to assets  9.58    9.50    11.59    11.76    11.53  
Effect of goodwill and other intangibles  .03    .02    .03    .04    .04  
 Equity to assets (GAAP)  9.61 %  9.52 %  11.62 %  11.80 %  11.57 %
                          
Tangible common equity to risk-weighted assets reconciliation                 
Tangible common equity to risk-weighted assets  13.92 %  13.63 %  13.18 %  13.34 %  13.16 %
Effect of other comprehensive income  .53    .36    .39    .49    .29  
Effect of deferred tax limitation  (3.74 )  (3.92 )  (4.26 )  (4.72 )  (4.99 )
Effect of trust preferred  1.04    1.03    1.04    1.09    1.11  
Effect of preferred equity  -    -    2.39    4.01    4.11  
 Tier I capital ratio (Regulatory)  11.75 %  11.10 %  12.74 %  14.21 %  13.68 %
 
 
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
 
 
  For the Six Months  
(in thousands, except per share Ended June 30,  
data; taxable equivalent) 2014   2013  
           
Interest revenue reconciliation          
Interest revenue - taxable equivalent $122,278   $124,202  
Taxable equivalent adjustment  (734 )  (733 )
 Interest revenue (GAAP) $121,544   $123,469  
           
Net interest revenue reconciliation          
Net interest revenue - taxable equivalent $109,119   $109,505  
Taxable equivalent adjustment  (734 )  (733 )
 Net interest revenue (GAAP) $108,385   $108,772  
           
Total revenue reconciliation          
Total operating revenue $130,738   $78,859  
Taxable equivalent adjustment  (734 )  (733 )
 Total revenue (GAAP) $130,004   $78,126  
           
Income (loss) before taxes reconciliation          
Income (loss) before taxes $51,156   $(13,734 )
Taxable equivalent adjustment  (734 )  (733 )
 Income (loss) before taxes (GAAP) $50,422   $(14,467 )
           
Income tax expense (benefit) reconciliation          
Income tax expense (benefit) $19,399   $(255,463 )
Taxable equivalent adjustment  (734 )  (733 )
 Income tax expense (benefit) (GAAP) $18,665   $(256,196 )
           
Book value per common share reconciliation          
Tangible book value per common share $11.91   $10.82  
Effect of goodwill and other intangibles  .03    .08  
 Book value per common share (GAAP) $11.94   $10.90  
           
Average equity to assets reconciliation          
Tangible common equity to assets  9.40 %  5.99 %
Effect of preferred equity  .14    2.84  
 Tangible equity to assets  9.54    8.83  
Effect of goodwill and other intangibles  .02    .07  
 Equity to assets (GAAP)  9.56 %  8.90 %
           
Tangible common equity to risk-weighted assets reconciliation  
Tangible common equity to risk-weighted assets  13.92 %  13.16 %
Effect of other comprehensive income  .53    .29  
Effect of deferred tax limitation  (3.74 )  (4.99 )
Effect of trust preferred  1.04    1.11  
Effect of preferred equity  -    4.11  
 Tier I capital ratio (Regulatory)  11.75 %  13.68 %
 
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
 
 
  2014   2013
  Second   First   Fourth   Third   Second
(in millions) Quarter   Quarter   Quarter   Quarter   Quarter
LOANS BY CATEGORY                       
Owner occupied commercial RE $1,163   $1,142   $1,134   $1,129   $1,119
Income producing commercial RE  598    624    623    614    629
Commercial & industrial  554    495    472    457    437
Commercial construction  160    148    149    137    133
  Total commercial  2,475    2,409    2,378    2,337    2,318
Residential mortgage  861    866    875    888    876
Home equity lines of credit  451    447    441    421    402
Residential construction  302    318    328    318    332
Consumer installment  321    316    307    303    261
  Total loans $4,410   $4,356   $4,329   $4,267   $4,189
                        
LOANS BY MARKET                       
North Georgia $1,175   $1,205   $1,240   $1,262   $1,265
Atlanta MSA  1,305    1,290    1,275    1,246    1,227
North Carolina  555    563    572    575    576
Coastal Georgia  426    425    423    421    397
Gainesville MSA  257    262    255    253    256
East Tennessee  270    272    280    277    282
South Carolina / Corporate  206    131    88    47    34
Other (2)  216    208    196    186    152
  Total loans $4,410   $4,356   $4,329   $4,267   $4,189
                        
RESIDENTIAL CONSTRUCTION                    
Dirt loans                       
 Acquisition & development $34   $37   $39   $40   $42
 Land loans  36    37    38    35    36
 Lot loans  151    159    166    167    173
  Total  221    233    243    242    251
                        
House loans                       
 Spec  19    19    23    30    34
 Sold  62    66    62    46    47
  Total  81    85    85    76    81
Total residential construction $302   $318   $328   $318   $332
                        
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
 
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
 
 
  2014   2013   Linked
Quarter
Change
  Year over
Year
Change
  Second   First   Second    
(in millions) Quarter   Quarter   Quarter    
LOANS BY CATEGORY                          
Owner occupied commercial RE $1,163   $1,142   $1,119   $21    $44  
Income producing commercial RE  598    624    629    (26 )   (31 )
Commercial & industrial  554    495    437    59     117  
Commercial construction  160    148    133    12     27  
  Total commercial  2,475    2,409    2,318    66     157  
Residential mortgage  861    866    876    (5 )   (15 )
Home equity lines of credit  451    447    402    4     49  
Residential construction  302    318    332    (16 )   (30 )
Consumer installment  321    316    261    5     60  
  Total loans $4,410   $4,356   $4,189    54     221  
                           
LOANS BY MARKET                          
North Georgia $1,175   $1,205   $1,265    (30 )   (90 )
Atlanta MSA  1,305    1,290    1,227    15     78  
North Carolina  555    563    576    (8 )   (21 )
Coastal Georgia  426    425    397    1     29  
Gainesville MSA  257    262    256    (5 )   1  
East Tennessee  270    272    282    (2 )   (12 )
South Carolina / Corporate  206    131    34    75     172  
Other (2)  216    208    152    8     64  
  Total loans $4,410   $4,356   $4,189    54     221  
                           
RESIDENTIAL CONSTRUCTION                       
Dirt loans                          
 Acquisition & development $34   $37   $42    (3 )   (8 )
 Land loans  36    37    36    (1 )   -  
 Lot loans  151    159    173    (8 )   (22 )
  Total  221    233    251    (12 )   (30 )
                           
House loans                          
 Spec  19    19    34    -     (15 )
 Sold  62    66    47    (4 )   15  
  Total  81    85    81    (4 )   -  
Total residential construction $302   $318   $332    (16 )   (30 )
                           
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.  
 
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality(1)
 
 
    Second Quarter 2014
    Non-performing   Foreclosed   Total
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE   $2,975    $653    $3,628  
Income producing CRE    1,032     242     1,274  
Commercial & industrial    1,102     -     1,102  
Commercial construction    95     -     95  
 Total commercial    5,204     895     6,099  
Residential mortgage    10,201     1,426     11,627  
Home equity lines of credit    510     128     638  
Residential construction    4,248     520     4,768  
Consumer installment    561     -     561  
 Total NPAs   $20,724    $2,969    $23,693  
 Balance as a % of                   
  Unpaid Principal    66.5 %   50.4 %   63.9 %
                    
NONPERFORMING ASSETS BY MARKET              
North Georgia   $8,216    $1,392    $9,608  
Atlanta MSA    3,883     510     4,393  
North Carolina    5,314     615     5,929  
Coastal Georgia    782     80     862  
Gainesville MSA    921     49     970  
East Tennessee    1,218     323     1,541  
South Carolina / Corporate    -     -     -  
Other (3)    390     -     390  
 Total NPAs   $20,724    $2,969    $23,693  
                    
                    
NONPERFORMING ASSETS ACTIVITY              
Beginning Balance   $25,250    $5,594    $30,844  
Loans placed on non-accrual    9,529     -     9,529  
Payments received    (4,027 )   -     (4,027 )
Loan charge-offs    (8,341 )   -     (8,341 )
Foreclosures    (1,687 )   1,687     -  
Capitalized costs    -     -     -  
Property sales    -     (4,430 )   (4,430 )
Write downs    -     (305 )   (305 )
Net gains (losses) on sales    -     423     423  
 Ending Balance   $20,724    $2,969    $23,693  
                    
(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 2014
    Non-performing   Foreclosed   Total
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE   $3,868    $1,167    $5,035  
Income producing CRE    1,278     1,645     2,923  
Commercial & industrial    822     -     822  
Commercial construction    479     -     479  
 Total commercial    6,447     2,812     9,259  
Residential mortgage    13,307     2,146     15,453  
Home equity lines of credit    1,106     362     1,468  
Residential construction    3,805     274     4,079  
Consumer installment    585     -     585  
 Total NPAs   $
Contact:
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
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