- Operating earnings per diluted share of 33 cents, up 14 percent from a year ago
- Operating return on assets of 1.00 percent
- Operating return on tangible common equity of 10.3 percent
- Completed merger with Palmetto Bancshares, Inc. and its wholly owned subsidiary, The Palmetto Bank (“Palmetto”), on September 1
- Loans up $310 million for 2015, or 9 percent annualized, excluding loans acquired in mergers
- Core transaction deposits up $519 million for 2015, or 19 percent annualized, excluding deposits acquired in the mergers
BLAIRSVILLE, Ga., Oct. 27, 2015 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today reported net operating income of $21.7 million for the third quarter of 2015, up 23 percent from a year ago. Operating earnings per diluted share was 33 cents, up 14 percent from a year ago. The increase reflects strong loan, core deposit and fee revenue growth, and a lower provision for credit losses.
Operating earnings and diluted operating earnings per share exclude the effects of merger-related charges, which are not considered part of ongoing operations. Including those charges, net income was $17.9 million for the third quarter, or 27 cents per diluted share.
For the first nine months of 2015, United reported net income of $53.4 million, or 84 cents per diluted share. Excluding merger-related charges, net operating income was $59.4 million, or 94 cents per diluted share.
“I am very pleased with our third quarter financial performance, which reflects the successful execution of our strategic plans,” said Jimmy Tallent, chairman and chief executive officer. “I’m especially proud that we completed the merger with Palmetto and welcomed their banking team to the United family.
“Total loan production remained strong in the third quarter, though net loan growth tapered off a bit due to a higher level of pay-downs,” Tallent continued. “Year-to-date, excluding loans from mergers, loan growth is $310 million, or 9 percent annualized, which is on track for our 2015 goal of mid-to-upper-single-digit loan growth. These new loans have been funded with solid core transaction deposit growth of $519 million, or 19 percent annualized, excluding mergers.
“Third quarter net loan growth of $53 million, excluding the Palmetto merger, was driven by loan production of $452 million across all United markets,” added Tallent. “Our community banks originated $256 million in loan production while our specialized lending area, which includes corporate, SBA, asset-based, middle market and commercial real estate lending, produced $150 million. Healthcare lending was part of specialized lending and we recently announced the sale of this $190 million corporate healthcare lending unit, which is expected to close by mid-fourth quarter 2015.”
Third quarter taxable-equivalent net interest revenue totaled $65.7 million, up $4.40 million from the second quarter of 2015 and up $8.75 million from the third quarter of 2014. Core deposit growth contributed to net interest revenue with a linked-quarter increase of $204 million, or 19 percent annualized, excluding deposits acquired in the merger. United’s Atlanta and North Georgia markets drove most of the growth.
“The acquisition of Palmetto added approximately $3.30 million to third quarter net interest revenue while loan growth accounted for the balance of the increase, which was offset partially by margin compression,” said Tallent. “The taxable-equivalent net interest margin of 3.26 percent was down four basis points from the second quarter, and down six basis points from a year ago, reflecting higher debt costs for the funding of the Palmetto acquisition, continued competitive loan pricing pressures, and a shift toward more floating rate loans.”
The third quarter provision for credit losses was $700 thousand, down $200 thousand from the second quarter and down $1.3 million from the third quarter of 2014. Third quarter net charge-offs were $1.42 million compared with $978 thousand in the second quarter and $3.16 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the second and third quarters of 2015 compared with third quarter 2014. Nonperforming assets were .29 percent of total assets at quarter-end, compared with .26 percent in the second quarter and .29 percent a year ago.
Third quarter fee revenue totaled $18.3 million, up $1.03 million from the second quarter and $3.89 million from the third quarter of 2014. Much of the increase resulted from the acquisition of Palmetto, mostly in the form of deposit service charges and mortgage fees. Total service charges and fees were $9.34 million, up $960 thousand from the second quarter and up $1.13 million from a year ago. Mortgage fees of $3.84 million were up $133 thousand from the second quarter and up $1.66 million from a year ago reflecting strong growth in home purchases and an increase in refinancing activities. Closed mortgage loans totaled $141 million in the third quarter of 2015, compared with $128 million in the second quarter and $84 million in the third quarter of 2014. During the third quarter, sales of $17.8 million in SBA loans resulted in net gains of $1.65 million. This compares with $14.7 million in loans sold and net gains of $1.49 million in the second quarter of 2015, and $7.4 million in loans sold and net gains of $945 thousand in the third quarter of 2014.
“We remain committed to diversifying our revenue stream by focusing on fee-generating products and services,” stated Tallent. “Our growing SBA lending business and commitment to expanding our mortgage origination business are key parts of this emphasis.”
Operating expenses, excluding merger-related charges of $5.74 million, were $48.5 million in the third quarter. This compares to $45.2 million in the second quarter of 2015 and $41.4 million in the third quarter of 2014. The September 1 acquisition of Palmetto Bancshares and its wholly owned subsidiary, The Palmetto Bank, added approximately $2.70 million to third quarter operating expenses. The May 1 acquisition of First National Bank added approximately $1.70 million to both third and second quarter operating expenses. Operating expenses from both acquired banks are expected to decline as anticipated cost savings are realized.
Third quarter salaries and employee benefits expense totaled $29.3 million, up $1.38 million from the second quarter and $3.68 million from a year ago. The linked-quarter increase reflects $1.1 million in additional compensation expense for the two acquired companies. The increase from a year ago reflects the acquisitions, investment in new producers and support staff for the specialized lending area, as well as higher commissions and incentives associated with growth in mortgage loans, commercial loans and core deposits.
Third quarter other operating expenses totaled $5.54 million, up $650 thousand from the second quarter and up $1.54 million from the third quarter of 2014. Nearly half of the linked-quarter increase in other expenses was due to higher intangible amortization costs from the two acquisitions. Most of the remaining linked-quarter increase reflected higher ATM network and lending support costs, while the increase from a year ago was due to higher lending support costs and an increase in servicing fees for the growing indirect auto loan portfolio.
“Palmetto merged into United on September 1 and its operating results are included in United’s from that date forward,” noted Tallent. “System conversions are targeted for the first quarter of 2016. First National Bank merged into United on May 1 and, during the third quarter, we successfully converted their operating systems to United and consolidated six of the combined United / FNB banking offices. All FNB banking offices now operate under the name of United Community Bank.”
At September 30, 2015, preliminary capital ratios were as follows: Tier 1 Risk-Based of 11.0 percent; Total Risk-Based of 12.1 percent; Tier 1 Common Risk-Based of 11.0 percent; and, Tier 1 Leverage of 8.2 percent.
“All of our regulatory capital ratios remain strong, though they have declined slightly from the prior quarter due to the acquisition of Palmetto,” commented Tallent. “During mid-August, we financed the cash portion of the Palmetto acquisition with the issuance of $85 million Senior Notes that had an average interest rate of 5.2 percent. Additionally, on September 15, to partially offset these higher funding costs, we redeemed $32 million of trust preferred securities with an average rate of 8.4 percent.
“Our third quarter results put us well on track to complete another remarkable year,” Tallent said. “In the second quarter we achieved our earlier goal of a 1 percent operating return on assets. Our new goal, driven by continued solid mid-to-high single-digit loan growth, is 1.10 percent for the fourth quarter of 2016.
“We are excited about executing our growth strategies to expand the franchise and add value for shareholders,” concluded Tallent. “We warmly and enthusiastically welcome First National and Palmetto to the United team. And, as always, we are dedicated every day to taking care of our customers – both existing and new – with the outstanding service for which our bankers are so very well known.”
Conference Call
United will hold a conference call today, Tuesday, October 27, 2015, 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 56009033. 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.
Investor Day Conference – October 8, 2015
On October 8, 2015, United held an Investor Day Conference in Atlanta, Georgia for its analysts and institutional investors. United’s executive and senior management presented the company’s business, growth and market strategies through a series of presentations and panel discussions. The conference was web cast on Events & Presentations from its Investor Relations page of the company’s’ website, www.ucib.com, and will remain available for replay for one year.
About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.4 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 133 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. United Community Bank offers a full range of consumer and commercial banking services including mortgage, advisory, treasury management and other products. In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and in 2015 was ranked fourteenth 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 2014 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 | ||||||||||||||||||||||||||
Third | ||||||||||||||||||||||||||
2015 | 2014 | Quarter | ||||||||||||||||||||||||
(in thousands, except per share | Third | Second | First | Fourth | Third | 2015-2014 | ||||||||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||
Interest revenue | $ | 71,120 | $ | 66,134 | $ | 62,909 | $ | 64,353 | $ | 63,338 | ||||||||||||||||
Interest expense | 5,402 | 4,817 | 5,292 | 6,021 | 6,371 | |||||||||||||||||||||
Net interest revenue | 65,718 | 61,317 | 57,617 | 58,332 | 56,967 | 15 | % | |||||||||||||||||||
Provision for credit losses | 700 | 900 | 1,800 | 1,800 | 2,000 | |||||||||||||||||||||
Fee revenue | 18,297 | 17,266 | 15,682 | 14,823 | 14,412 | 27 | ||||||||||||||||||||
Total revenue | 83,315 | 77,683 | 71,499 | 71,355 | 69,379 | 20 | ||||||||||||||||||||
Expenses - operating (1) | 48,525 | 45,247 | 43,061 | 41,919 | 41,364 | 17 | ||||||||||||||||||||
Income before income tax expense - operating (1) | 34,790 | 32,436 | 28,438 | 29,436 | 28,015 | 24 | ||||||||||||||||||||
Income tax expense - operating (1) | 13,064 | 12,447 | 10,768 | 11,189 | 10,399 | 26 | ||||||||||||||||||||
Net income - operating (1) | 21,726 | 19,989 | 17,670 | 18,247 | 17,616 | 23 | ||||||||||||||||||||
Preferred dividends and discount accretion | 25 | 17 | - | - | - | |||||||||||||||||||||
Net income available to common shareholders - operating (1) | 21,701 | 19,972 | 17,670 | 18,247 | 17,616 | 23 | ||||||||||||||||||||
Merger-related charges, net of income tax benefit | 3,839 | 2,176 | - | - | - | |||||||||||||||||||||
Net income available to common shareholders - GAAP | $ | 17,862 | $ | 17,796 | $ | 17,670 | $ | 18,247 | $ | 17,616 | 1 | |||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||
Diluted income - operating (1) | $ | .33 | $ | .32 | $ | .29 | $ | .30 | $ | .29 | 14 | |||||||||||||||
Diluted income - GAAP | .27 | .28 | .29 | .30 | .29 | (7 | ) | |||||||||||||||||||
Cash dividends declared | .06 | .05 | .05 | .05 | .03 | |||||||||||||||||||||
Book value | 13.95 | 12.95 | 12.58 | 12.20 | 12.15 | 15 | ||||||||||||||||||||
Tangible book value (3) | 12.08 | 12.66 | 12.53 | 12.15 | 12.10 | - | ||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 10.29 | % | 10.20 | % | 9.46 | % | 9.74 | % | 9.55 | % | ||||||||||||||||
Return on common equity - operating (1)(2)(4) | 9.54 | 9.90 | 9.34 | 9.60 | 9.41 | |||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 7.85 | 8.83 | 9.34 | 9.60 | 9.41 | |||||||||||||||||||||
Return on assets - operating (1)(4) | 1.00 | 1.00 | .94 | .96 | .95 | |||||||||||||||||||||
Return on assets - GAAP (4) | .82 | .89 | .94 | .96 | .95 | |||||||||||||||||||||
Dividend payout ratio - operating (1) | 18.18 | 15.63 | 17.24 | 16.67 | 10.34 | |||||||||||||||||||||
Dividend payout ratio - GAAP | 22.22 | 17.86 | 17.24 | 16.67 | 10.34 | |||||||||||||||||||||
Net interest margin (4) | 3.26 | 3.30 | 3.31 | 3.31 | 3.32 | |||||||||||||||||||||
Efficiency ratio - operating (1) | 57.81 | 57.59 | 59.15 | 57.47 | 57.96 | |||||||||||||||||||||
Efficiency ratio - GAAP | 64.65 | 61.63 | 59.15 | 57.47 | 57.96 | |||||||||||||||||||||
Average equity to average assets | 10.39 | 10.05 | 9.86 | 9.76 | 9.85 | |||||||||||||||||||||
Average tangible equity to average assets (3) | 9.88 | 9.91 | 9.82 | 9.72 | 9.83 | |||||||||||||||||||||
Average tangible common equity to average assets (3) | 9.77 | 9.83 | 9.82 | 9.72 | 9.83 | |||||||||||||||||||||
Tangible common equity to risk-weighted assets (3)(5)(6) | 12.68 | 13.24 | 13.53 | 13.82 | 14.10 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||
Nonperforming loans | $ | 20,064 | $ | 18,805 | $ | 19,015 | $ | 17,881 | $ | 18,745 | 7 | |||||||||||||||
Foreclosed properties | 7,669 | 2,356 | 1,158 | 1,726 | 3,146 | 144 | ||||||||||||||||||||
Total nonperforming assets (NPAs) | 27,733 | 21,161 | 20,173 | 19,607 | 21,891 | 27 | ||||||||||||||||||||
Allowance for loan losses | 69,062 | 70,129 | 70,007 | 71,619 | 71,928 | |||||||||||||||||||||
Net charge-offs | 1,417 | 978 | 2,562 | 2,509 | 3,155 | (55 | ) | |||||||||||||||||||
Allowance for loan losses to loans | 1.15 | % | 1.36 | % | 1.46 | % | 1.53 | % | 1.57 | % | ||||||||||||||||
Allowance for loan losses to loans, excl. acquired loans | 1.37 | 1.42 | 1.46 | 1.53 | 1.57 | |||||||||||||||||||||
Net charge-offs to average loans (4) | .10 | .08 | .22 | .22 | .28 | |||||||||||||||||||||
NPAs to loans and foreclosed properties | .46 | .41 | .42 | .42 | .48 | |||||||||||||||||||||
NPAs to total assets | .29 | .26 | .26 | .26 | .29 | |||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||
Loans | $ | 5,457 | $ | 5,017 | $ | 4,725 | $ | 4,621 | $ | 4,446 | 23 | |||||||||||||||
Investment securities | 2,396 | 2,261 | 2,203 | 2,222 | 2,231 | 7 | ||||||||||||||||||||
Earning assets | 8,009 | 7,444 | 7,070 | 7,013 | 6,820 | 17 | ||||||||||||||||||||
Total assets | 8,634 | 8,017 | 7,617 | 7,565 | 7,374 | 17 | ||||||||||||||||||||
Deposits | 7,135 | 6,669 | 6,369 | 6,383 | 6,143 | 16 | ||||||||||||||||||||
Shareholders’ equity | 897 | 806 | 751 | 738 | 726 | 24 | ||||||||||||||||||||
Common shares - basic (thousands) | 66,294 | 62,549 | 60,905 | 60,830 | 60,776 | 9 | ||||||||||||||||||||
Common shares - diluted (thousands) | 66,300 | 62,553 | 60,909 | 60,833 | 60,779 | 9 | ||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||
Loans | $ | 6,022 | $ | 5,174 | $ | 4,788 | $ | 4,672 | $ | 4,569 | 32 | |||||||||||||||
Investment securities | 2,457 | 2,322 | 2,201 | 2,198 | 2,222 | 11 | ||||||||||||||||||||
Total assets | 9,414 | 8,246 | 7,664 | 7,567 | 7,526 | 25 | ||||||||||||||||||||
Deposits | 7,905 | 6,808 | 6,438 | 6,327 | 6,241 | 27 | ||||||||||||||||||||
Shareholders’ equity | 1,013 | 827 | 764 | 740 | 736 | 38 | ||||||||||||||||||||
Common shares outstanding (thousands) | 71,472 | 62,700 | 60,309 | 60,259 | 60,248 | 19 | ||||||||||||||||||||
(1) Excludes merger-related charges. (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) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. (6) Third quarter 2015 ratio is preliminary. | ||||||||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||
Financial Highlights | ||||||||||||||
Selected Financial Information | ||||||||||||||
For the Nine | ||||||||||||||
Months Ended | YTD | |||||||||||||
(in thousands, except per share | September 30, | 2015-2014 | ||||||||||||
data; taxable equivalent) | 2015 | 2014 | Change | |||||||||||
INCOME SUMMARY | ||||||||||||||
Interest revenue | $ | 200,163 | $ | 185,616 | ||||||||||
Interest expense | 15,511 | 19,530 | ||||||||||||
Net interest revenue | 184,652 | 166,086 | 11 | % | ||||||||||
Provision for credit losses | 3,400 | 6,700 | ||||||||||||
Fee revenue | 51,245 | 40,731 | 26 | |||||||||||
Total revenue | 232,497 | 200,117 | 16 | |||||||||||
Expenses - operating (1) | 136,833 | 120,946 | 13 | |||||||||||
Income before income tax expense - operating (1) | 95,664 | 79,171 | 21 | |||||||||||
Income tax expense - operating (1) | 36,279 | 29,798 | 22 | |||||||||||
Net income - operating (1) | 59,385 | 49,373 | 20 | |||||||||||
Preferred dividends and discount accretion | 42 | 439 | ||||||||||||
Net income available to common shareholders - operating (1) | 59,343 | 48,934 | 21 | |||||||||||
Merger-related charges, net of income tax benefit | 6,015 | - | ||||||||||||
Net income available to common shareholders - GAAP | $ | 53,328 | $ | 48,934 | 9 | |||||||||
PERFORMANCE MEASURES | ||||||||||||||
Per common share: | ||||||||||||||
Diluted income - operating (1) | $ | .94 | $ | .81 | 16 | |||||||||
Diluted income - GAAP | .84 | .81 | 4 | |||||||||||
Cash dividends declared | .16 | .06 | ||||||||||||
Book value | 13.95 | 12.15 | 15 | |||||||||||
Tangible book value (3) | 12.08 | 12.10 | - | |||||||||||
Key performance ratios: | ||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 10.00 | % | 9.18 | % | ||||||||||
Return on common equity - operating (1)(2)(4) | 9.60 | 9.02 | ||||||||||||
Return on common equity - GAAP (2)(4) | 8.63 | 9.02 | ||||||||||||
Return on assets - operating (1)(4) | .98 | .89 | ||||||||||||
Return on assets - GAAP (4) | .88 | .89 | ||||||||||||
Dividend payout ratio - operating (1) | 17.02 | 7.41 | ||||||||||||
Dividend payout ratio - GAAP | 19.05 | 7.41 | ||||||||||||
Net interest margin (4) | 3.29 | 3.25 | ||||||||||||
Efficiency ratio - operating (1) | 58.15 | 58.54 | ||||||||||||
Efficiency ratio - GAAP | 61.94 | 58.54 | ||||||||||||
Average equity to average assets | 10.11 | 9.66 | ||||||||||||
Average tangible equity to average assets (3) | 9.88 | 9.64 | ||||||||||||
Average tangible common equity to average assets (3) | 9.81 | 9.55 | ||||||||||||
Tangible common equity to risk-weighted assets (3)(5)(6) | 12.68 | 14.10 | ||||||||||||
ASSET QUALITY | ||||||||||||||
Nonperforming loans | $ | 20,064 | $ | 18,745 | 7 | |||||||||
Foreclosed properties | 7,669 | 3,146 | 144 | |||||||||||
Total nonperforming assets (NPAs) | 27,733 | 21,891 | 27 | |||||||||||
Allowance for loan losses | 69,062 | 71,928 | ||||||||||||
Net charge-offs | 4,957 | 11,369 | (56 | ) | ||||||||||
Allowance for loan losses to loans | 1.15 | % | 1.57 | % | ||||||||||
Allowance for loan losses to loans, excl. acquired loans | 1.37 | 1.57 | ||||||||||||
Net charge-offs to average loans (4) | .13 | .35 | ||||||||||||
NPAs to loans and foreclosed properties | .46 | .48 | ||||||||||||
NPAs to total assets | .29 | .29 | ||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||
Loans | $ | 5,069 | $ | 4,393 | 15 | |||||||||
Investment securities | 2,288 | 2,292 | - | |||||||||||
Earning assets | 7,511 | 6,836 | 10 | |||||||||||
Total assets | 8,093 | 7,392 | 9 | |||||||||||
Deposits | 6,727 | 6,176 | 9 | |||||||||||
Shareholders’ equity | 818 | 714 | 15 | |||||||||||
Common shares - basic (thousands) | 63,297 | 60,511 | 5 | |||||||||||
Common shares - diluted (thousands) | 63,302 | 60,513 | 5 | |||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||
Loans | $ | 6,022 | $ | 4,569 | 32 | |||||||||
Investment securities | 2,457 | 2,222 | 11 | |||||||||||
Total assets | 9,414 | 7,526 | 25 | |||||||||||
Deposits | 7,905 | 6,241 | 27 | |||||||||||
Shareholders’ equity | 1,013 | 736 | 38 | |||||||||||
Common shares outstanding (thousands) | 71,472 | 60,248 | 19 | |||||||||||
(1) Excludes merger-related charges. (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) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. (6) Third quarter 2015 ratio is preliminary. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Non-GAAP Performance Measures Reconciliation | ||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(in thousands, except per share | Third | Second | First | Fourth | Third | |||||||||||||||
data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Interest revenue reconciliation | ||||||||||||||||||||
Interest revenue - taxable equivalent | $ | 71,120 | $ | 66,134 | $ | 62,909 | $ | 64,353 | $ | 63,338 | ||||||||||
Taxable equivalent adjustment | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (405 | ) | ||||||||||
Interest revenue (GAAP) | $ | 70,828 | $ | 65,808 | $ | 62,534 | $ | 63,955 | $ | 62,933 | ||||||||||
Net interest revenue reconciliation | ||||||||||||||||||||
Net interest revenue - taxable equivalent | $ | 65,718 | $ | 61,317 | $ | 57,617 | $ | 58,332 | $ | 56,967 | ||||||||||
Taxable equivalent adjustment | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (405 | ) | ||||||||||
Net interest revenue (GAAP) | $ | 65,426 | $ | 60,991 | $ | 57,242 | $ | 57,934 | $ | 56,562 | ||||||||||
Total revenue reconciliation | ||||||||||||||||||||
Total operating revenue | $ | 83,315 | $ | 77,683 | $ | 71,499 | $ | 71,355 | $ | 69,379 | ||||||||||
Taxable equivalent adjustment | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (405 | ) | ||||||||||
Total revenue (GAAP) | $ | 83,023 | $ | 77,357 | $ | 71,124 | $ | 70,957 | $ | 68,974 | ||||||||||
Expense reconciliation | ||||||||||||||||||||
Expenses - operating | $ | 48,525 | $ | 45,247 | $ | 43,061 | $ | 41,919 | $ | 41,364 | ||||||||||
Merger-related charges | 5,744 | 3,173 | - | - | - | |||||||||||||||
Expenses (GAAP) | $ | 54,269 | $ | 48,420 | $ | 43,061 | $ | 41,919 | $ | 41,364 | ||||||||||
Income before taxes reconciliation | ||||||||||||||||||||
Income before taxes - operating | $ | 34,790 | $ | 32,436 | $ | 28,438 | $ | 29,436 | $ | 28,015 | ||||||||||
Taxable equivalent adjustment | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (405 | ) | ||||||||||
Merger-related charges | (5,744 | ) | (3,173 | ) | - | - | - | |||||||||||||
Income before taxes (GAAP) | $ | 28,754 | $ | 28,937 | $ | 28,063 | $ | 29,038 | $ | 27,610 | ||||||||||
Income tax expense reconciliation | ||||||||||||||||||||
Income tax expense - operating | $ | 13,064 | $ | 12,447 | $ | 10,768 | $ | 11,189 | $ | 10,399 | ||||||||||
Taxable equivalent adjustment | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (405 | ) | ||||||||||
Merger-related charges, tax benefit | (1,905 | ) | (997 | ) | - | - | - | |||||||||||||
Income tax expense (GAAP) | $ | 10,867 | $ | 11,124 | $ | 10,393 | $ | 10,791 | $ | 9,994 | ||||||||||
Net income reconciliation | ||||||||||||||||||||
Net income - operating | $ | 21,726 | $ | 19,989 | $ | 17,670 | $ | 18,247 | $ | 17,616 | ||||||||||
Merger-related charges, net of income tax benefit | (3,839 | ) | (2,176 | ) | - | - | - | |||||||||||||
Net income (GAAP) | $ | 17,887 | $ | 17,813 | $ | 17,670 | $ | 18,247 | $ | 17,616 | ||||||||||
Net income available to common shareholders reconciliation | ||||||||||||||||||||
Net income available to common shareholders - operating | $ | 21,701 | $ | 19,972 | $ | 17,670 | $ | 18,247 | $ | 17,616 | ||||||||||
Merger-related charges, net of income tax benefit | (3,839 | ) | (2,176 | ) | - | - | - | |||||||||||||
Net income available to common shareholders (GAAP) | $ | 17,862 | $ | 17,796 | $ | 17,670 | $ | 18,247 | $ | 17,616 | ||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||
Diluted income per common share - operating | $ | .33 | $ | .32 | $ | .29 | $ | .30 | $ | .29 | ||||||||||
Merger-related charges | (.06 | ) | (.04 | ) | - | - | - | |||||||||||||
Diluted income per common share (GAAP) | $ | .27 | $ | .28 | $ | .29 | $ | .30 | $ | .29 | ||||||||||
Book value per common share reconciliation | ||||||||||||||||||||
Tangible book value per common share | $ | 12.08 | $ | 12.66 | $ | 12.53 | $ | 12.15 | $ | 12.10 | ||||||||||
Effect of goodwill and other intangibles | 1.87 | .29 | .05 | .05 | .05 | |||||||||||||||
Book value per common share (GAAP) | $ | 13.95 | $ | 12.95 | $ | 12.58 | $ | 12.20 | $ | 12.15 | ||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||
Return on tangible common equity - operating | 10.29 | % | 10.20 | % | 9.46 | % | 9.74 | % | 9.55 | % | ||||||||||
Effect of goodwill and other intangibles | (.75 | ) | (.30 | ) | (.12 | ) | (.14 | ) | (.14 | ) | ||||||||||
Return on common equity - operating | 9.54 | 9.90 | 9.34 | 9.60 | 9.41 | |||||||||||||||
Merger-related charges | (1.69 | ) | (1.07 | ) | - | - | - | |||||||||||||
Return on common equity (GAAP) | 7.85 | % | 8.83 | % | 9.34 | % | 9.60 | % | 9.41 | % | ||||||||||
Return on assets reconciliation | ||||||||||||||||||||
Return on assets - operating | 1.00 | % | 1.00 | % | .94 | % | .96 | % | .95 | % | ||||||||||
Merger-related charges | (.18 | ) | (.11 | ) | - | - | - | |||||||||||||
Return on assets (GAAP) | .82 | % | .89 | % | .94 | % | .96 | % | .95 | % | ||||||||||
Allowance for loan losses to loans reconciliation | ||||||||||||||||||||
Allowance for loan losses to loans, excl. acquired loans | 1.37 | % | 1.42 | % | 1.46 | % | 1.53 | % | 1.57 | % | ||||||||||
Effect of removing acquired loans from ratio | (.22 | ) | (.06 | ) | - | - | - | |||||||||||||
Allowance for loan losses to loans (GAAP) | 1.15 | % | 1.36 | % | 1.46 | % | 1.53 | % | 1.57 | % | ||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||
Dividend payout ratio - operating | 18.18 | % | 15.63 | % | 17.24 | % | 16.67 | % | 10.34 | % | ||||||||||
Merger-related charges | 4.04 | 2.23 | - | - | - | |||||||||||||||
Dividend payout ratio (GAAP) | 22.22 | % | 17.86 | % | 17.24 | % | 16.67 | % | 10.34 | % | ||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||
Efficiency ratio - operating | 57.81 | % | 57.59 | % | 59.15 | % | 57.47 | % | 57.96 | % | ||||||||||
Merger-related charges | 6.84 | 4.04 | - | - | - | |||||||||||||||
Efficiency ratio (GAAP) | 64.65 | % | 61.63 | % | 59.15 | % | 57.47 | % | 57.96 | % | ||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||
Tangible common equity to assets | 9.77 | % | 9.83 | % | 9.82 | % | 9.72 | % | 9.83 | % | ||||||||||
Effect of preferred equity | .11 | .08 | - | - | - | |||||||||||||||
Tangible equity to assets | 9.88 | 9.91 | 9.82 | 9.72 | 9.83 | |||||||||||||||
Effect of goodwill and other intangibles | .51 | .14 | .04 | .04 | .02 | |||||||||||||||
Equity to assets (GAAP) | 10.39 | % | 10.05 | % | 9.86 | % | 9.76 | % | 9.85 | % | ||||||||||
Tangible common equity to risk-weighted assets reconciliation (1) | ||||||||||||||||||||
Tangible common equity to risk-weighted assets | 12.68 | % | 13.24 | % | 13.53 | % | 13.82 | % | 14.10 | % | ||||||||||
Effect of other comprehensive income | .22 | .28 | .19 | .35 | .34 | |||||||||||||||
Effect of deferred tax limitation | .08 | (2.49 | ) | (2.86 | ) | (3.11 | ) | (3.39 | ) | |||||||||||
Effect of trust preferred | .15 | .63 | .67 | 1.00 | 1.02 | |||||||||||||||
Effect of preferred equity | (2.20 | ) | .17 | - | - | - | ||||||||||||||
Basel III intangibles transition adjustment | .12 | .06 | .04 | - | - | |||||||||||||||
Basel III disallowed investments | (.02 | ) | (.03 | ) | (.04 | ) | - | - | ||||||||||||
Tier I capital ratio (Regulatory) | 11.03 | % | 11.86 | % | 11.53 | % | 12.06 | % | 12.07 | % | ||||||||||
(1) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Third quarter 2015 ratios are preliminary. | ||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||
Non-GAAP Performance Measures Reconciliation | |||||||||
Selected Financial Information | |||||||||
For the Nine Months Ended September 30, | |||||||||
(in thousands, except per share | |||||||||
data; taxable equivalent) | 2015 | 2014 | |||||||
Interest revenue reconciliation | |||||||||
Interest revenue - taxable equivalent | $ | 200,163 | $ | 185,616 | |||||
Taxable equivalent adjustment | (993 | ) | (1,139 | ) | |||||
Interest revenue (GAAP) | $ | 199,170 | $ | 184,477 | |||||
Net interest revenue reconciliation | |||||||||
Net interest revenue - taxable equivalent | $ | 184,652 | $ | 166,086 | |||||
Taxable equivalent adjustment | (993 | ) | (1,139 | ) | |||||
Net interest revenue (GAAP) | $ | 183,659 | $ | 164,947 | |||||
Total revenue reconciliation | |||||||||
Total operating revenue | $ | 232,497 | $ | 200,117 | |||||
Taxable equivalent adjustment | (993 | ) | (1,139 | ) | |||||
Total revenue (GAAP) | $ | 231,504 | $ | 198,978 | |||||
Expense reconciliation | |||||||||
Expenses - operating | $ | 136,833 | $ | 120,946 | |||||
Merger-related charges | 8,917 | - | |||||||
Expenses (GAAP) | $ | 145,750 | $ | 120,946 | |||||
Income before taxes reconciliation | |||||||||
Income before taxes - operating | $ | 95,664 | $ | 79,171 | |||||
Taxable equivalent adjustment | (993 | ) | (1,139 | ) | |||||
Merger-related charges | (8,917 | ) | - | ||||||
Income before taxes (GAAP) | $ | 85,754 | $ | 78,032 | |||||
Income tax expense reconciliation | |||||||||
Income tax expense - operating | $ | 36,279 | $ | 29,798 | |||||
Taxable equivalent adjustment | (993 | ) | (1,139 | ) | |||||
Merger-related charges, tax benefit | (2,902 | ) | - | ||||||
Income tax expense (GAAP) | $ | 32,384 | $ | 28,659 | |||||
Net income reconciliation | |||||||||
Net income - operating | $ | 59,385 | $ | 49,373 | |||||
Merger-related charges, net of income tax benefit | (6,015 | ) | - | ||||||
Net income (GAAP) | $ | 53,370 | $ | 49,373 | |||||
Net income available to common shareholders reconciliation | |||||||||
Net income available to common shareholders - operating | $ | 59,343 | $ | 48,934 | |||||
Merger-related charges, net of income tax benefit | (6,015 | ) | - | ||||||
Net income available to common shareholders (GAAP) | $ | 53,328 | $ | 48,934 | |||||
Diluted income per common share reconciliation | |||||||||
Diluted income per common share - operating | $ | .94 | $ | .81 | |||||
Merger-related charges | (.10 | ) | - | ||||||
Diluted income per common share (GAAP) | $ | .84 | $ | .81 | |||||
Book value per common share reconciliation | |||||||||
Tangible book value per common share | $ | 12.08 | $ | 12.10 | |||||
Effect of goodwill and other intangibles | 1.87 | .05 | |||||||
Book value per common share (GAAP) | $ | 13.95 | $ | 12.15 | |||||
Return on tangible common equity reconciliation | |||||||||
Return on tangible common equity - operating | 10.00 | % | 9.18 | % | |||||
Effect of goodwill and other intangibles | (.40 | ) | (.16 | ) | |||||
Return on common equity - operating | 9.60 | 9.02 | |||||||
Merger-related charges | (.97 | ) | - | ||||||
Return on common equity (GAAP) | 8.63 | % | 9.02 | % | |||||
Return on assets reconciliation | |||||||||
Return on assets - operating | .98 | % | .89 | % | |||||
Merger-related charges | (.10 | ) | - | ||||||
Return on assets (GAAP) | .88 | % | .89 | % | |||||
Allowance for loan losses to loans reconciliation | |||||||||
Allowance for loan losses to loans, excl. acquired loans | 1.37 | % | 1.57 | % | |||||
Effect of removing acquired loans from ratio | (.22 | ) | - | ||||||
Allowance for loan losses to loans (GAAP) | 1.15 | % | 1.57 | % | |||||
Dividend payout ratio reconciliation | |||||||||
Dividend payout ratio - operating | 17.02 | % | 7.41 | % | |||||
Merger-related charges | 2.03 | - | |||||||
Dividend payout ratio (GAAP) | 19.05 | % | 7.41 | % | |||||
Efficiency ratio reconciliation | |||||||||
Efficiency ratio - operating | 58.15 | % | 58.54 | % | |||||
Merger-related charges | 3.79 | - | |||||||
Efficiency ratio (GAAP) | 61.94 | % | 58.54 | % | |||||
Average equity to assets reconciliation | |||||||||
Tangible common equity to assets | 9.81 | % | 9.55 | % | |||||
Effect of preferred equity | .07 | .09 | |||||||
Tangible equity to assets | 9.88 | 9.64 | |||||||
Effect of goodwill and other intangibles | .23 | .02 | |||||||
Equity to assets (GAAP) | 10.11 | % | 9.66 | % | |||||
Tangible common equity to risk-weighted assets reconciliation (1) | |||||||||
Tangible common equity to risk-weighted assets | 12.68 | % | 14.10 | % | |||||
Effect of other comprehensive income | .22 | .34 | |||||||
Effect of deferred tax limitation | .08 | (3.39 | ) | ||||||
Effect of trust preferred | .15 | 1.02 | |||||||
Effect of preferred equity | (2.20 | ) | - | ||||||
Basel III intangibles transition adjustment | .12 | - | |||||||
Basel III disallowed investments | (.02 | ) | - | ||||||
Tier I capital ratio (Regulatory) | 11.03 | % | 12.07 | % | |||||
(1) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Third quarter 2015 ratios are preliminary. | |||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
Loan Portfolio Composition at Period-End | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Third | Second | First | Fourth | Third | ||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Owner occupied commercial RE | $ | 1,479 | $ | 1,266 | $ | 1,167 | $ | 1,163 | $ | 1,153 | ||||||||||
Income producing commercial RE | 818 | 689 | 636 | 599 | 605 | |||||||||||||||
Commercial & industrial | 890 | 793 | 716 | 710 | 650 | |||||||||||||||
Commercial construction | 319 | 238 | 230 | 196 | 181 | |||||||||||||||
Total commercial | 3,506 | 2,986 | 2,749 | 2,668 | 2,589 | |||||||||||||||
Residential mortgage | 1,060 | 935 | 864 | 866 | 866 | |||||||||||||||
Home equity lines of credit | 585 | 491 | 465 | 466 | 459 | |||||||||||||||
Residential construction | 334 | 299 | 291 | 299 | 307 | |||||||||||||||
Consumer installment | 537 | 463 | 419 | 373 | 348 | |||||||||||||||
Total loans | $ | 6,022 | $ | 5,174 | $ | 4,788 | $ | 4,672 | $ | 4,569 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||
North Georgia | $ | 1,128 | $ | 1,155 | $ | 1,150 | $ | 1,163 | $ | 1,168 | ||||||||||
Atlanta MSA | 1,266 | 1,275 | 1,254 | 1,243 | 1,245 | |||||||||||||||
North Carolina | 546 | 533 | 539 | 553 | 553 | |||||||||||||||
Coastal Georgia | 506 | 499 | 476 | 456 | 444 | |||||||||||||||
Gainesville MSA | 252 | 257 | 255 | 257 | 254 | |||||||||||||||
East Tennessee | 511 | 525 | 281 | 280 | 281 | |||||||||||||||
South Carolina | 783 | 35 | 30 | 30 | 21 | |||||||||||||||
Specialized Lending | 609 | 538 | 487 | 421 | 360 | |||||||||||||||
Indirect auto | 421 | 357 | 316 | 269 | 243 | |||||||||||||||
Total loans | $ | 6,022 | $ | 5,174 | $ | 4,788 | $ | 4,672 | $ | 4,569 | ||||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||
Loan Portfolio Composition at Period-End | |||||||||||||||||||||
2015 | 2014 | Linked | Year over | ||||||||||||||||||
Third | Second | Third | Quarter | Year | |||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Change | Change | ||||||||||||||||
LOANS BY CATEGORY | |||||||||||||||||||||
Owner occupied commercial RE | $ | 1,479 | $ | 1,266 | $ | 1,153 | $ | 213 | $ | 326 | |||||||||||
Income producing commercial RE | 818 | 689 | 605 | 129 | 213 | ||||||||||||||||
Commercial & industrial | 890 | 793 | 650 | 97 | 240 | ||||||||||||||||
Commercial construction | 319 | 238 | 181 | 81 | 138 | ||||||||||||||||
Total commercial | 3,506 | 2,986 | 2,589 | 520 | 917 | ||||||||||||||||
Residential mortgage | 1,060 | 935 | 866 | 125 | 194 | ||||||||||||||||
Home equity lines of credit | 585 | 491 | 459 | 94 | 126 | ||||||||||||||||
Residential construction | 334 | 299 | 307 | 35 | 27 | ||||||||||||||||
Consumer installment | 537 | 463 | 348 | 74 | 189 | ||||||||||||||||
Total loans | $ | 6,022 | $ | 5,174 | $ | 4,569 | 848 | 1,453 | |||||||||||||
LOANS BY MARKET | |||||||||||||||||||||
North Georgia | $ | 1,128 | $ | 1,155 | $ | 1,168 | (27 | ) | (40 | ) | |||||||||||
Atlanta MSA | 1,266 | 1,275 | 1,245 | (9 | ) | 21 | |||||||||||||||
North Carolina | 546 | 533 | 553 | 13 | (7 | ) | |||||||||||||||
Coastal Georgia | 506 | 499 | 444 | 7 | 62 | ||||||||||||||||
Gainesville MSA | 252 | 257 | 254 | (5 | ) | (2 | ) | ||||||||||||||
East Tennessee | 511 | 525 | 281 | (14 | ) | 230 | |||||||||||||||
South Carolina | 783 | 35 | 21 | 748 | 762 | ||||||||||||||||
Specialized Lending | 609 | 538 | 360 | 71 | 249 | ||||||||||||||||
Indirect auto | 421 | 357 | 243 | 64 | 178 | ||||||||||||||||
Total loans | $ | 6,022 | $ | 5,174 | $ | 4,569 | 848 | 1,453 | |||||||||||||
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 | |||||||||||||||
Second Quarter 2015 | |||||||||||||||
Nonperforming | Foreclosed | Total | |||||||||||||
(in thousands) | Loans | Properties | NPAs | ||||||||||||
NONPERFORMING ASSETS BY CATEGORY | |||||||||||||||
Owner occupied CRE | $ | 4,878 | $ | 360 | $ | 5,238 | |||||||||
Income producing CRE | 883 | - | 883 | ||||||||||||
Commercial & industrial | 1,389 | - | 1,389 | ||||||||||||
Commercial construction | 59 | 382 | 441 | ||||||||||||
Total commercial | 7,209 | 742 | 7,951 | ||||||||||||
Residential mortgage | 8,599 | 1,373 | 9,972 | ||||||||||||
Home equity lines of credit | 940 | 54 | 994 | ||||||||||||
Residential construction | 1,358 | 187 | 1,545 | ||||||||||||
Consumer installment | 699 | - | 699 | ||||||||||||
Total NPAs | $ | 18,805 | $ | 2,356 | $ | 21,161 | |||||||||
Balance as a % of | |||||||||||||||
Unpaid Principal | 64.9 | % | 46.6 | % | 62.2 | % | |||||||||
NONPERFORMING ASSETS BY MARKET | |||||||||||||||
North Georgia | $ | 6,157 | $ | 657 | $ | 6,814 | |||||||||
Atlanta MSA | 2,361 | 135 | 2,496 | ||||||||||||
North Carolina | 4,746 | 690 | 5,436 | ||||||||||||
Coastal Georgia | 659 | - | 659 | ||||||||||||
Gainesville MSA | 864 | 22 | 886 | ||||||||||||
East Tennessee | 1,885 | 852 | 2,737 | ||||||||||||
South Carolina | - | - | - | ||||||||||||
Specialized Lending | 1,565 | - | 1,565 | ||||||||||||
Indirect auto | 568 | - | 568 | ||||||||||||
Total NPAs | $ | 18,805 | $ | 2,356 | $ | 21,161 | |||||||||
NONPERFORMING ASSETS ACTIVITY | |||||||||||||||
Beginning Balance | $ | 19,015 | $ | 1,158 | $ | 20,173 | |||||||||
Acquisitions | - | 962 | 962 | ||||||||||||
Loans placed on non-accrual | 6,552 | - | 6,552 | ||||||||||||
Payments received | (3,839 | ) | - | (3,839 | ) | ||||||||||
Loan charge-offs | (1,854 | ) | - | (1,854 | ) | ||||||||||
Foreclosures | (1,069 | ) | 1,069 | - | |||||||||||
Capitalized costs | - | - | - | ||||||||||||
Property sales | - | (895 | ) | (895 | ) | ||||||||||
Write downs | - | (9 | ) | (9 | ) | ||||||||||
Net gains (losses) on sales | - | 71 | 71 | ||||||||||||
Ending Balance | $ | 18,805 | $ | 2,356 | $ | 21,161 | |||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Financial Highlights | |||||||||||||||
Credit Quality | |||||||||||||||
First Quarter 2015 | |||||||||||||||
Nonperforming | Foreclosed | Total | |||||||||||||
(in thousands) | Loans | Properties | NPAs | ||||||||||||
NONPERFORMING ASSETS BY CATEGORY | |||||||||||||||
Owner occupied CRE | $ | 4,360 | $ | 173 | $ | 4,533 | |||||||||
Income producing CRE | 835 | - | 835 | ||||||||||||
Commercial & industrial | 1,629 | - | 1,629 | ||||||||||||
Commercial construction | 60 | - | 60 | ||||||||||||
Total commercial | 6,884 | 173 | 7,057 | ||||||||||||
Residential mortgage | 8,669 | 796 | 9,465 | ||||||||||||
Home equity lines of credit | 693 | 50 | 743 | ||||||||||||
Residential construction | 2,127 | 139 | 2,266 | ||||||||||||
Consumer installment | 642 | - | 642 | ||||||||||||
Total NPAs | $ | 19,015 | $ | 1,158 | $ | 20,173 | |||||||||
Balance as a % of | |||||||||||||||
Unpaid Principal | 72.0 | % | 56.6 | % | 70.9 | % | |||||||||
NONPERFORMING ASSETS BY MARKET | |||||||||||||||
North Georgia | $ | 6,101 | $ | 662 | $ | 6,763 | |||||||||
Atlanta MSA | 1,903 | 227 | 2,130 | ||||||||||||
North Carolina | 5,321 | 159 | 5,480 | ||||||||||||
Coastal Georgia | 901 | - | 901 | ||||||||||||
Gainesville MSA | 781 | 22 | 803 | ||||||||||||
East Tennessee | 1,808 | 30 | 1,838 | ||||||||||||
South Carolina | - | 36 | 36 | ||||||||||||
Specialized Lending | 1,700 | 22 | 1,722 | ||||||||||||
Indirect auto | 500 | - | 500 | ||||||||||||
Total NPAs | $ | 19,015 | $ | 1,158 | $ | 20,173 | |||||||||
NONPERFORMING ASSETS ACTIVITY | |||||||||||||||
Beginning Balance | $ | 17,881 | $ | 1,726 | $ | 19,607 | |||||||||
Acquisitions | - | - | - | ||||||||||||
Loans placed on non-accrual | 5,944 | - | 5,944 | ||||||||||||
Payments received | (1,513 | ) | - | (1,513 | ) | ||||||||||
Loan charge-offs | (2,838 | ) | - | (2,838 | ) | ||||||||||
Foreclosures | (459 | ) | 459 | - | |||||||||||
Capitalized costs | - | - | - | ||||||||||||
Property sales | - | (1,108 | ) | (1,108 | ) | ||||||||||
Write downs | - | (166 | ) | (166 | ) | ||||||||||
Net gains (losses) on sales | - | 247 | 247 | ||||||||||||
Ending Balance | $ | 19,015 | $ | 1,158 | $ | 20,173 | |||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||||||||||
Third Quarter 2015 | Second Quarter 2015 | First 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 | $ | 236 | .07 | % | $ | 285 | .09 | % | $ | 357 | .12 | % | ||||||||||||||||||||||||
Income producing CRE | (106 | ) | (.06 | ) | (276 | ) | (.17 | ) | 241 | .16 | ||||||||||||||||||||||||||
Commercial & industrial | 190 | .09 | (627 | ) | (.33) | 341 | .19 | |||||||||||||||||||||||||||||
Commercial construction | 59 | .09 | 96 | .16 | 22 | .04 | ||||||||||||||||||||||||||||||
Total commercial | 379 | .05 | (522 | ) | (.07 | ) | 961 | .14 | ||||||||||||||||||||||||||||
Residential mortgage | 433 | .18 | 787 | .35 | 416 | .20 | ||||||||||||||||||||||||||||||
Home equity lines of credit | 293 | .22 | 322 | .27 | 59 | .05 | ||||||||||||||||||||||||||||||
Residential construction | (124 | ) | (.16 | ) | 107 | .14 | 1,061 | 1.46 | ||||||||||||||||||||||||||||
Consumer installment | 436 | .35 | 284 | .26 | 65 | .07 | ||||||||||||||||||||||||||||||
Total | $ | 1,417 | .10 | $ | 978 | .08 | $ | 2,562 | .22 | |||||||||||||||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 1,352 | .47 | % | $ | 911 | .32 | % | $ | 1,053 | .37 | % | ||||||||||||||||||||||||
Atlanta MSA | 74 | .02 | 138 | .04 | 204 | .07 | ||||||||||||||||||||||||||||||
North Carolina | 183 | .13 | 176 | .13 | 666 | .49 | ||||||||||||||||||||||||||||||
Coastal Georgia | 19 | .02 | (40 | ) | (.03 | ) | 134 | .12 | ||||||||||||||||||||||||||||
Gainesville MSA | (236 | ) | (.36 | ) | (233 | ) | (.36 | ) | (65 | ) | (.10 | ) | ||||||||||||||||||||||||
East Tennessee | 153 | .12 | 127 | .11 | 471 | .68 | ||||||||||||||||||||||||||||||
South Carolina | (247 | ) | (.34 | ) | - | - | - | - | ||||||||||||||||||||||||||||
Specialized Lending | (42 | ) | (.03 | ) | (224 | ) | (.17 | ) | (16 | ) | (.01 | ) | ||||||||||||||||||||||||
Indirect auto | 161 | .17 | 123 | .14 | 115 | .16 | ||||||||||||||||||||||||||||||
Total | $ | 1,417 | .10 | $ | 978 | .08 | $ | 2,562 | .22 | |||||||||||||||||||||||||||
(1) Annualized. |
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||
Consolidated Statement of Income (Unaudited) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest revenue: | |||||||||||||||||
Loans, including fees | $ | 57,174 | $ | 49,653 | $ | 159,814 | $ | 145,602 | |||||||||
Investment securities, including tax exempt of $177, $177, $516 and $558 | 12,801 | 12,346 | 36,896 | 36,118 | |||||||||||||
Deposits in banks and short-term investments | 853 | 934 | 2,460 | 2,757 | |||||||||||||
Total interest revenue | 70,828 | 62,933 | 199,170 | 184,477 | |||||||||||||
Interest expense: | |||||||||||||||||
Deposits: | |||||||||||||||||
NOW | 337 | 365 | 1,079 | 1,216 | |||||||||||||
Money market | 981 | 872 | 2,460 | 2,192 | |||||||||||||
Savings | 25 | 20 | 71 | 61 | |||||||||||||
Time | 830 | 1,721 | 2,834 | 5,510 | |||||||||||||
Total deposit interest expense | 2,173 | 2,978 | 6,444 | 8,979 | |||||||||||||
Short-term borrowings | 99 | 316 | 279 | 2,064 | |||||||||||||
Federal Home Loan Bank advances | 461 | 435 | 1,307 | 573 | |||||||||||||
Long-term debt | 2,669 | 2,642 | 7,481 | 7,914 | |||||||||||||
Total interest expense | 5,402 | 6,371 | 15,511 | 19,530 | |||||||||||||
Net interest revenue | 65,426 | 56,562 | 183,659 | 164,947 | |||||||||||||
Provision for credit losses | 700 | 2,000 | 3,400 | 6,700 | |||||||||||||
Net interest revenue after provision for credit losses | 64,726 | 54,562 | 180,259 | 158,247 | |||||||||||||
Fee revenue: | |||||||||||||||||
Service charges and fees | 9,335 | 8,202 | 25,325 | 24,627 | |||||||||||||
Mortgage loan and other related fees | 3,840 | 2,178 | 10,302 | 5,409 | |||||||||||||
Brokerage fees | 1,200 | 1,209 | 3,983 | 3,631 | |||||||||||||
Gains from sales of SBA loans | 1,646 | 945 | 4,281 | 1,689 | |||||||||||||
Securities gains, net | 325 | 11 | 1,877 | 4,663 | |||||||||||||
Loss from prepayment of debt | (256 | ) | - | (1,294 | ) | (4,446 | ) | ||||||||||
Other | 2,207 | 1,867 | 6,771 | 5,158 | |||||||||||||
Total fee revenue | 18,297 | 14,412 | 51,245 | 40,731 | |||||||||||||
Total revenue | 83,023 | 68,974 | 231,504 | 198,978 | |||||||||||||
Operating expenses: | |||||||||||||||||
Salaries and employee benefits | 29,342 | 25,666 | 83,749 | 74,349 | |||||||||||||
Communications and equipment | 3,963 | 3,094 | 10,538 | 9,370 | |||||||||||||
Occupancy | 4,013 | 3,425 | 10,706 | 10,065 | |||||||||||||
Advertising and public relations | 812 | 894 | 2,689 | 2,659 | |||||||||||||
Postage, printing and supplies | 1,049 | 876 | 2,980 | 2,456 | |||||||||||||
Professional fees | 2,668 | 2,274 | 6,844 | 5,873 | |||||||||||||
FDIC assessments and other regulatory charges | 1,136 | 1,131 | 3,643 | 3,909 | |||||||||||||
Merger-related charges | 5,744 | - | 8,917 | - | |||||||||||||
Other | 5,542 | 4,004 | 15,684 | 12,265 | |||||||||||||
Total operating expenses | 54,269 | 41,364 | 145,750 | 120,946 | |||||||||||||
Net income before income taxes | 28,754 | 27,610 | 85,754 | 78,032 | |||||||||||||
Income tax expense | 10,867 | 9,994 | 32,384 | 28,659 | |||||||||||||
Net income | 17,887 | 17,616 | 53,370 | 49,373 | |||||||||||||
Preferred stock dividends and discount accretion | 25 | - | 42 | 439 | |||||||||||||
Net income available to common shareholders | $ | 17,862 | $ | 17,616 | $ | 53,328 | $ | 48,934 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | .27 | $ | .29 | $ | .84 | $ | .81 | |||||||||
Diluted | .27 | .29 | .84 | .81 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 66,294 | 60,776 | 63,297 | 60,511 | |||||||||||||
Diluted | 66,300 | 60,779 | 63,302 | 60,513 | |||||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||
Consolidated Balance Sheet (Unaudited) | ||||||||||||
September 30, | December 31, | September 30, | ||||||||||
(in thousands, except share and per share data) | 2015 | 2014 | 2014 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 93,975 | $ | 77,180 | $ | 75,268 | ||||||
Interest-bearing deposits in banks | 112,964 | 89,074 | 117,399 | |||||||||
Short-term investments | - | 26,401 | 23,397 | |||||||||
Cash and cash equivalents | 206,939 | 192,655 | 216,064 | |||||||||
Securities available for sale | 2,099,868 | 1,782,734 | 1,789,667 | |||||||||
Securities held to maturity (fair value $368,096, $425,233 and $440,311) | 357,549 | 415,267 | 432,418 | |||||||||
Mortgage loans held for sale | 24,279 | 13,737 | 20,004 | |||||||||
Loans, net of unearned income | 6,022,394 | 4,672,119 | 4,568,886 | |||||||||
Less allowance for loan losses | (69,062 | ) | (71,619 | ) | (71,928 | ) | ||||||
Loans, net | 5,953,332 | 4,600,500 | 4,496,958 | |||||||||
Premises and equipment, net | 192,992 | 159,390 | 160,454 | |||||||||
Bank owned life insurance | 105,368 | 81,294 | 81,101 | |||||||||
Accrued interest receivable | 24,563 | 20,103 | 19,908 | |||||||||
Net deferred tax asset | 197,116 | 215,503 | 224,734 | |||||||||
Derivative financial instruments | 19,906 | 20,599 | 22,221 | |||||||||
Goodwill and other intangible assets | 141,415 | 3,641 | 3,910 | |||||||||
Other assets | 90,669 | 61,563 | 58,450 | |||||||||
Total assets | $ | 9,413,996 | $ | 7,566,986 | $ | 7,525,889 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 2,174,799 | $ | 1,574,317 | $ | 1,561,020 | ||||||
NOW | 1,754,614 | 1,504,887 | 1,399,449 | |||||||||
Money market | 1,651,592 | 1,273,283 | 1,281,526 | |||||||||
Savings | 459,323 | 292,308 | 287,797 | |||||||||
Time: | ||||||||||||
Less than $100,000 | 865,369 | 748,478 | 774,201 | |||||||||
Greater than $100,000 | 482,567 | 508,228 | 531,428 | |||||||||
Brokered | 516,748 | 425,011 | 405,308 | |||||||||
Total deposits | 7,905,012 | 6,326,512 | 6,240,729 | |||||||||
Short-term borrowings | 18,839 | 6,000 | 6,001 | |||||||||
Federal Home Loan Bank advances | 200,125 | 270,125 | 330,125 | |||||||||
Long-term debt | 165,620 | 129,865 | 129,865 | |||||||||
Derivative financial instruments | 27,401 | 31,997 | 36,171 | |||||||||
Unsettled securities purchases | - | 5,425 | - | |||||||||
Accrued expenses and other liabilities | 83,862 | 57,485 | 46,573 | |||||||||
Total liabilities | 8,400,859 | 6,827,409 | 6,789,464 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; | ||||||||||||
Series H; $1,000 stated value; 9,992 shares issued and outstanding | 9,992 | - | - | |||||||||
Common stock, $1 par value; 100,000,000 shares authorized; | ||||||||||||
63,186,437, 50,178,605 and 50,167,191 shares issued and outstanding | 63,186 | 50,178 | 50,167 | |||||||||
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; | ||||||||||||
8,285,516, 10,080,787 and 10,080,787 shares issued and outstanding | 8,286 | 10,081 | 10,081 | |||||||||
Common stock issuable; 454,870, 357,983 and 354,961 shares | 6,670 | 5,168 | 5,116 | |||||||||
Capital surplus | 1,284,877 | 1,080,508 | 1,091,555 | |||||||||
Accumulated deficit | (344,746 | ) | (387,568 | ) | (402,773 | ) | ||||||
Accumulated other comprehensive loss | (15,128 | ) | (18,790 | ) | (17,721 | ) | ||||||
Total shareholders' equity | 1,013,137 | 739,577 | 736,425 | |||||||||
Total liabilities and shareholders' equity | $ | 9,413,996 | $ | 7,566,986 | $ | 7,525,889 | ||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis | |||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Average | Avg. | Average | Avg. | ||||||||||||||||||
(dollars in thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (1)(2) | $ | 5,457,158 | $ | 57,258 | 4.16 | % | $ | 4,445,947 | $ | 49,853 | 4.45 | % | |||||||||
Taxable securities (3) | 2,367,417 | 12,624 | 2.13 | 2,212,116 | 12,169 | 2.20 | |||||||||||||||
Tax-exempt securities (1)(3) | 28,889 | 290 | 4.02 | 18,794 | 290 | 6.17 | |||||||||||||||
Federal funds sold and other interest-earning assets | 155,957 | 948 | 2.43 | 143,169 | 1,026 | 2.87 | |||||||||||||||
Total interest-earning assets | 8,009,421 | 71,120 | 3.53 | 6,820,026 | 63,338 | 3.69 | |||||||||||||||
Non-interest-earning assets: | |||||||||||||||||||||
Allowance for loan losses | (71,090 | ) | (74,146 | ) | |||||||||||||||||
Cash and due from banks | 80,678 | 71,224 | |||||||||||||||||||
Premises and equipment | 179,463 | 161,315 | |||||||||||||||||||
Other assets (3) | 435,060 | 395,184 | |||||||||||||||||||
Total assets | $ | 8,633,532 | $ | 7,373,603 | |||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW | $ | 1,491,801 | 337 | .09 | $ | 1,331,806 | 365 | .11 | |||||||||||||
Money market | 1,737,740 | 981 | .22 | 1,387,042 | 872 | .25 | |||||||||||||||
Savings | 386,254 | 25 | .03 | 282,746 | 20 | .03 | |||||||||||||||
Time less than $100,000 | 793,755 | 708 | .35 | 791,289 | 876 | .44 | |||||||||||||||
Time greater than $100,000 | 484,074 | 447 | .37 | 542,216 | 827 | .61 | |||||||||||||||
Brokered time deposits | 268,716 | (325 | ) | (.48 | ) | 278,330 | 18 | .03 | |||||||||||||
Total interest-bearing deposits | 5,162,340 | 2,173 | .17 | 4,613,429 | 2,978 | .26 | |||||||||||||||
Federal funds purchased and other borrowings | 72,909 | 99 | .54 | 53,713 | 316 | 2.33 | |||||||||||||||
Federal Home Loan Bank advances | 281,429 | 461 | .65 | 227,190 | 435 | .76 | |||||||||||||||
Long-term debt | 152,105 | 2,669 | 6.96 | 129,865 | 2,642 | 8.07 | |||||||||||||||
Total borrowed funds | 506,443 | 3,229 | 2.53 | 410,768 | 3,393 | 3.28 | |||||||||||||||
Total interest-bearing liabilities | 5,668,783 | 5,402 | .38 | 5,024,197 | 6,371 | .50 | |||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Non-interest-bearing deposits | 1,972,291 | 1,530,011 | |||||||||||||||||||
Other liabilities | 95,342 | 92,986 | |||||||||||||||||||
Total liabilities | 7,736,416 | 6,647,194 | |||||||||||||||||||
Shareholders' equity | 897,116 | 726,409 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,633,532 | $ | 7,373,603 | |||||||||||||||||
Net interest revenue | $ | 65,718 | $ | 56,967 | |||||||||||||||||
Net interest-rate spread | 3.15 | % | 3.19 | % | |||||||||||||||||
Net interest margin (4) | 3.26 | % | 3.32 | % | |||||||||||||||||
(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 $8.56 million in 2015 and pretax unrealized gains of $7.42 million in 2014 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 Nine Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Average | Avg. | Average | Avg. | ||||||||||||||||||
(dollars in thousands, taxable equivalent) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (1)(2) | $ | 5,069,270 | $ | 160,204 | 4.23 | % | $ | 4,392,895 | $ | 146,156 | 4.45 | % | |||||||||
Taxable securities (3) | 2,263,907 | 36,380 | 2.14 | 2,272,639 | 35,560 | 2.09 | |||||||||||||||
Tax-exempt securities (1)(3) | 23,649 | 845 | 4.76 | 19,515 | 914 | 6.24 | |||||||||||||||
Federal funds sold and other interest-earning assets | 154,392 | 2,734 | 2.36 | 150,782 | 2,986 | 2.64 | |||||||||||||||
Total interest-earning assets | 7,511,218 | 200,163 | 3.56 | 6,835,831 | 185,616 | 3.63 | |||||||||||||||
Non-interest-earning assets: | |||||||||||||||||||||
Allowance for loan losses | (71,425 | ) | (76,148 | ) | |||||||||||||||||
Cash and due from banks | 78,948 | 65,744 | |||||||||||||||||||
Premises and equipment | 169,037 | 161,843 | |||||||||||||||||||
Other assets (3) | 405,101 | 404,654 | |||||||||||||||||||
Total assets | $ | 8,092,879 | $ | 7,391,924 | |||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW | $ | 1,462,344 | 1,079 | .10 | $ | 1,367,713 | 1,216 | .12 | |||||||||||||
Money market | 1,605,098 | 2,460 | .20 | 1,375,064 | 2,192 | .21 | |||||||||||||||
Savings | 340,878 | 71 | .03 | 272,696 | 61 | .03 | |||||||||||||||
Time less than $100,000 | 768,608 | 2,223 | .39 | 828,694 | 2,822 | .46 | |||||||||||||||
Time greater than $100,000 | 484,439 | 1,593 | .44 | 561,167 | 2,610 | .62 | |||||||||||||||
Brokered time deposits | 272,688 | (982 | ) | (.48 | ) | 300,374 | 78 | .03 | |||||||||||||
Total interest-bearing deposits | 4,934,055 | 6,444 | .17 | 4,705,708 | 8,979 | .26 | |||||||||||||||
Federal funds purchased and other borrowings | 52,385 | 279 | .71 | 91,320 | 2,064 | 3.02 | |||||||||||||||
Federal Home Loan Bank advances | 270,260 | 1,307 | .65 | 169,392 | 573 | .45 | |||||||||||||||
Long-term debt | 131,338 | 7,481 | 7.62 | 129,865 | 7,914 | 8.15 | |||||||||||||||
Total borrowed funds | 453,983 | 9,067 | 2.67 | 390,577 | 10,551 | 3.61 | |||||||||||||||
Total interest-bearing liabilities | 5,388,038 | 15,511 | .38 | 5,096,285 | 19,530 | .51 | |||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Non-interest-bearing deposits | 1,793,181 | 1,469,967 | |||||||||||||||||||
Other liabilities | 93,218 | 111,522 | |||||||||||||||||||
Total liabilities | 7,274,437 | 6,677,774 | |||||||||||||||||||
Shareholders' equity | 818,442 | 714,150 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,092,879 | $ | 7,391,924 | |||||||||||||||||
Net interest revenue | $ | 184,652 | $ | 166,086 | |||||||||||||||||
Net interest-rate spread | 3.18 | % | 3.12 | % | |||||||||||||||||
Net interest margin (4) | 3.29 | % | 3.25 | % | |||||||||||||||||
(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 $12.7 million in 2015 and pretax unrealized gains of $1.59 million in 2014 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. | |||||||||||||||||||||