Georgia
|
58-1807304
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
125
Highway 515 East, Blairsville, Georgia
|
30512
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large accelerated filer o | Accelerated filer x | ||
Non-accelerated filer o | Smaller Reporting Company o |
PART
I
|
||||
Item
1.
|
Business
|
3
|
||
Item
1A.
|
Risk
Factors
|
13
|
||
Item
1B.
|
Unresolved
Staff Comments
|
18
|
||
Item
2.
|
Properties
|
18
|
||
Item
3.
|
Legal
Proceedings
|
18
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
18
|
||
PART
II
|
||||
Item
5.
|
Market
for United’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
19
|
||
Item
6.
|
Selected
Financial Data
|
21
|
||
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
23
|
||
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
48
|
||
Item
8.
|
Financial
Statements and Supplementary Data
|
51
|
||
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
93
|
||
Item
9A.
|
Controls
and Procedures
|
93
|
||
Item
9B.
|
Other
Information
|
93
|
||
PART
III
|
||||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
94
|
||
Item
11.
|
Executive
Compensation
|
94
|
||
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
94
|
||
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
94
|
||
Item
14.
|
Principal
Accounting Fees and Services
|
94
|
||
PART
IV
|
||||
Item
15.
|
Exhibits,
Financial Statement Schedules
|
95
|
||
SIGNATURES
|
99
|
●
|
the
condition of the banking system and financial
markets;
|
●
|
our
ability to become profitable;
|
●
|
the
results of our most recent internal credit stress test may not accurately
predict the impact on our financial condition if the economy was to
continue to deteriorate;
|
●
|
our
ability to raise capital consistent with our capital
plan;
|
●
|
our
ability to maintain liquidity or access other sources of
funding;
|
●
|
changes
in the cost and availability of
funding;
|
●
|
the
success of the local economies in which we
operate;
|
●
|
our
concentrations of residential and commercial construction and development
loans and commercial real estate loans are subject to unique risks that
could adversely affect our
earnings;
|
●
|
changes
in prevailing interest rates may negatively affect our net income and the
value of our assets;
|
●
|
the
accounting and reporting policies of
United;
|
●
|
if
our allowance for loan losses is not sufficient to cover actual loan
losses;
|
●
|
we
may be subject to losses due to fraudulent and negligent conduct of our
loan customers, third party service providers or
employees;
|
●
|
the
adverse effects on future earnings resulting from non-cash charges for
goodwill impairment;
|
●
|
our
ability to fully realize our deferred tax asset
balances;
|
●
|
competition
from financial institutions and other financial service
providers;
|
●
|
the
United States Department of Treasury (“Treasury”) may change the terms of
our Series B Preferred Stock;
|
●
|
risks
with respect to future expansion and
acquisitions;
|
●
|
conditions
in the stock market, the public debt market and other capital markets
deteriorate;
|
●
|
financial
services laws and regulations
change;
|
●
|
the
failure of other financial
institutions;
|
●
|
a
special assessment that may be imposed by the FDIC on all FDIC-insured
institutions in the future, similar to the assessment in 2009 that
decreased our earnings; and
|
●
|
unanticipated
regulatory or judicial proceedings, board resolutions, informal
memorandums of understanding or formal enforcement actions imposed by
regulators that occur, or any such proceedings or enforcement actions that
is more severe than we anticipate.
|
Share
of Local Deposit Markets by County - Banks and Savings
Institutions
|
|||||||||||||
Market |
|
Rank
in
|
Market
|
Rank
in
|
Market
|
Rank
in
|
|||||||
Share
|
Market
|
Share
|
Market
|
Share
|
Market
|
||||||||
Atlanta,
Georgia MSA
|
North
Georgia
|
Coastal
Georgia
|
|||||||||||
Bartow
|
8
|
%
|
5
|
Chattooga
|
40
|
%
|
1
|
Chatham
|
1
|
%
|
11
|
||
Carroll
|
4
|
7
|
Fannin
|
50
|
1
|
Glynn
|
13
|
3
|
|||||
Cherokee
|
4
|
9
|
Floyd
|
13
|
3
|
Ware
|
7
|
7
|
|||||
Cobb
|
3
|
7
|
Gilmer
|
14
|
2
|
||||||||
Coweta
|
3
|
10
|
Habersham
|
14
|
3
|
North
Carolina
|
|||||||
Dawson
|
29
|
1
|
Jackson
|
4
|
8
|
Avery
|
15
|
4
|
|||||
DeKalb
|
1
|
18
|
Lumpkin
|
29
|
1
|
Cherokee
|
34
|
1
|
|||||
Douglas
|
1
|
13
|
Rabun
|
10
|
5
|
Clay
|
51
|
1
|
|||||
Fayette
|
11
|
4
|
Towns
|
27
|
2
|
Graham
|
74
|
1
|
|||||
Forsyth
|
3
|
11
|
Union
|
88
|
1
|
Haywood
|
12
|
4
|
|||||
Fulton
|
1
|
20
|
White
|
39
|
1
|
Henderson
|
3
|
11
|
|||||
Gwinnett
|
3
|
7
|
Jackson
|
24
|
1
|
||||||||
Henry
|
4
|
8
|
Tennessee
|
Macon
|
9
|
4
|
|||||||
Newton
|
3
|
9
|
Blount
|
3
|
11
|
Mitchell
|
32
|
1
|
|||||
Paulding
|
2
|
12
|
Bradley
|
5
|
7
|
Swain
|
28
|
2
|
|||||
Pickens
|
2
|
7
|
Knox
|
1
|
16
|
Transylvania
|
14
|
3
|
|||||
Rockdale
|
12
|
3
|
Loudon
|
16
|
3
|
Watauga
|
2
|
11
|
|||||
Walton
|
1
|
10
|
McMinn
|
3
|
9
|
Yancey
|
17
|
4
|
|||||
Monroe
|
4
|
7
|
|
||||||||||
Gainesville,
Georgia MSA
|
Roane
|
10
|
4
|
||||||||||
Hall
|
13
|
4
|
Loan Type
|
|
Risk Elements
|
|
|
Commercial
(commercial and industrial)
|
Industry
concentrations; inability to monitor the condition of collateral
(inventory, accounts receivable and other non-real estate assets); use of
specialized or obsolete equipment as collateral; insufficient cash flow
from operations to service debt payments; declines in general economic
conditions.
|
|||
Commercial
(secured by real estate)
|
Loan
portfolio concentrations; declines in general economic conditions and
occupancy rates; business failure and lack of a suitable alternative use
for property; environmental contamination.
|
|||
Commercial
construction
|
Loan
portfolio concentrations; inadequate long-term financing arrangements;
cost overruns, changes in market demand for property.
|
|||
Residential
construction
|
Loan
portfolio concentrations; inadequate long-term financing arrangements;
cost overruns, changes in market demand for property.
|
|||
Residential
mortgage
|
Loan
portfolio concentrations; changes in general economic conditions or in the
local economy; loss of borrower’s employment; insufficient collateral
value due to decline in property value.
|
|||
Consumer
installment
|
Loss
of borrower’s employment; changes in local economy; the inability to
monitor collateral.
|
7
(Watch)
|
Weaknesses
exist that could cause future impairment, including the deterioration of
financial ratios, past-due status and questionable management
capabilities. Collateral values generally afford adequate
coverage, but may not be immediately
marketable.
|
8
(Substandard)
|
Specific
and well-defined weaknesses that may include poor liquidity and
deterioration of financial ratios. Loan may be past-due and
related deposit accounts experiencing overdrafts. Immediate
corrective action is necessary.
|
9
(Doubtful)
|
Specific
weaknesses characterized as Substandard that are severe enough to make
collection in full unlikely. No reliable secondary source of
full repayment.
|
10
(Loss)
|
Same
characteristics as Doubtful, however, probability of loss is
certain. Loans classified as such are generally
charged-off.
|
●
|
making
or servicing loans and certain types of
leases;
|
●
|
performing
certain data processing services;
|
●
|
acting
as fiduciary or investment or financial
advisor;
|
●
|
providing
brokerage services;
|
●
|
underwriting
bank eligible securities;
|
●
|
underwriting
debt and equity securities on a limited basis through separately
capitalized subsidiaries; and
|
●
|
making
investments in corporations or projects designed primarily to promote
community welfare.
|
●
|
lending,
exchanging, transferring, investing for others or safeguarding money or
securities;
|
●
|
insuring,
guaranteeing, or indemnifying against loss, harm, damage, illness,
disability, or death, or providing and issuing annuities, and acting as
principal, agent, or broker with respect
thereto;
|
●
|
providing
financial, investment, or economic advisory services, including advising
an investment company;
|
●
|
issuing
or selling instruments representing interests in pools of assets
permissible for a bank to hold directly;
and
|
●
|
underwriting,
dealing in or making a market in
securities.
|
|
(a)
|
total
classified assets as of the most recent examination of the bank do not
exceed 80% of equity capital (as defined by
regulation);
|
|
(b)
|
the
aggregate amount of dividends declared or anticipated to be declared in
the calendar year does not exceed 50% of the net profits after taxes but
before dividends for the previous calendar year;
and
|
|
(c)
|
the
ratio of equity capital to adjusted assets is not less than
6%.
|
Name(age) | Position with United | Officer of United Since | ||||||
Jimmy
C. Tallent (57)
|
President,
Chief Executive Officer and Director
|
1988
|
||||||
Guy
W. Freeman (73)
|
Executive
Vice President, Chief Operating Officer
|
1995
|
||||||
Rex
S. Schuette (60)
|
Executive
Vice President and Chief Financial Officer
|
2001
|
||||||
David
Shearrow (50)
|
Executive
Vice President and Chief Risk Officer since April 2007; prior to joining
United, he served as Executive Vice President and Senior Credit Officer of
SunTrust Banks
|
2007
|
||||||
Craig
Metz (54)
|
Executive
Vice President of Marketing
|
2002
|
||||||
Bill
M. Gilbert (57)
|
Senior
Vice President of Retail Banking
|
2003
|
||||||
Glenn
S. White (58)
|
President
of the Atlanta Region since 2008; previously, he was the President of
United Community Bank - Gwinnett since 2007; prior to joining United, he
served as Chief Executive Officer of Gwinnett Commercial Group,
Inc.
|
2008
|
●
|
a
decrease in the demand for loans and other products and services offered
by us;
|
●
|
a
decrease in the value of our loans secured by consumer or commercial real
estate;
|
●
|
an
impairment of our assets, such as our goodwill or deferred tax assets;
or
|
●
|
an
increase in the number of customers or other counterparties who default on
their loans or other obligations to us, which could result in a higher
level of nonperforming assets, net charge-offs and provision for loan
losses.
|
●
|
the
potential inaccuracy of the estimates and judgments used to evaluate
credit, operations, management and market risks with respect to an
acquired branch or institution, a new branch office or a new
market;
|
●
|
the
time and costs of evaluating new markets, hiring or retaining experienced
local management and opening new offices and the time lags between these
activities and the generation of sufficient assets and deposits to support
the costs of the expansion;
|
●
|
the
incurrence and possible impairment of goodwill associated with an
acquisition and possible adverse effects on results of
operations;
|
●
|
the
loss of key employees and customers of an acquired branch or
institution;
|
●
|
the
difficulty or failure to successfully integrate the acquired financial
institution or portion of the
institution; and
|
●
|
the
temporary disruption of our business or the business of the acquired
institution.
|
ITEM
5.
|
MARKET
FOR UNITED’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES.
|
Stock
Price Information
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||||||||||
High
|
Low
|
Close
|
Avg
Daily
Volume |
High
|
Low
|
Close
|
Avg
Daily Volume |
|||||||||||||||||||||||||
First
quarter
|
$ | 13.87 | $ | 2.28 | $ | 4.16 | 524,492 | $ | 20.80 | $ | 13.38 | $ | 16.98 | 441,659 | ||||||||||||||||||
Second
quarter
|
9.30 | 4.01 | 5.99 | 244,037 | 18.51 | 8.51 | 8.53 | 464,566 | ||||||||||||||||||||||||
Third
quarter
|
8.00 | 4.80 | 5.00 | 525,369 | 19.05 | 7.58 | 13.26 | 359,971 | ||||||||||||||||||||||||
Fourth
quarter
|
5.33 | 3.07 | 3.39 | 1,041,113 | 15.82 | 9.25 | 13.58 | 319,534 |
Cumulative
Total Returns *
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||||||||||||||||
United
Community Banks, Inc.
|
$ | 100 | $ | 100 | $ | 123 | $ | 61 | $ | 54 | $ | 14 | ||||||||||||
Nasdaq
Stock Market (U.S.) Index
|
100 | 102 | 112 | 122 | 59 | 84 | ||||||||||||||||||
Nasdaq
Bank Index
|
100 | 98 | 110 | 87 | 63 | 53 |
ITEM 6. SELECTED FINANCIAL DATA. | ||||||||||||||||||||
For
the Years Ended December 31,
|
||||||||||||||||||||
(in
thousands, except per share data;
taxable equivalent) |
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
INCOME
SUMMARY
|
||||||||||||||||||||
Net
interest revenue
|
$ | 245,227 | $ | 238,704 | $ | 274,483 | $ | 237,880 | $ | 196,799 | ||||||||||
Provision
for loan losses (1)
|
310,000 | 184,000 | 37,600 | 14,600 | 12,100 | |||||||||||||||
Operating
fee revenue (2)
|
58,788 | 53,141 | 62,651 | 49,095 | 46,148 | |||||||||||||||
Total
operating revenue (1)(2)
|
(5,985 | ) | 107,845 | 299,534 | 272,375 | 230,847 | ||||||||||||||
Operating
expenses (3)
|
224,055 | 206,699 | 190,061 | 162,070 | 140,808 | |||||||||||||||
Operating
(loss) income before taxes
|
(230,040 | ) | (98,854 | ) | 109,473 | 110,305 | 90,039 | |||||||||||||
Operating
income taxes
|
(91,448 | ) | (35,404 | ) | 40,482 | 41,490 | 33,297 | |||||||||||||
Net
operating (loss) income
|
(138,592 | ) | (63,450 | ) | 68,991 | 68,815 | 56,742 | |||||||||||||
Gain
from acquisition, net of tax
|
7,062 | - | - | - | - | |||||||||||||||
Noncash
goodwill impairment charge
|
(95,000 | ) | - | - | - | - | ||||||||||||||
Severance
cost, net of tax benefit
|
(1,797 | ) | - | - | - | - | ||||||||||||||
Fraud
loss provision, net of tax benefit
|
- | - | (10,998 | ) | - | - | ||||||||||||||
Net
(loss) income
|
(228,327 | ) | (63,450 | ) | 57,993 | 68,815 | 56,742 | |||||||||||||
Preferred
dividends and discount accretion
|
10,242 | 724 | 18 | 19 | 23 | |||||||||||||||
Net
(loss) income available to common shareholders
|
$ | (238,569 | ) | $ | (64,174 | ) | $ | 57,975 | $ | 68,796 | $ | 56,719 | ||||||||
PERFORMANCE
MEASURES
|
||||||||||||||||||||
Per
common share:
|
||||||||||||||||||||
Diluted
operating (loss) earnings (1)(2)(3)
|
$ | (2.47 | ) | $ | (1.35 | ) | $ | 1.48 | $ | 1.66 | $ | 1.43 | ||||||||
Diluted
(loss) earnings
|
(3.95 | ) | (1.35 | ) | 1.24 | 1.66 | 1.43 | |||||||||||||
Cash
dividends declared (rounded)
|
- | .18 | .36 | .32 | .28 | |||||||||||||||
Stock
dividends declared
(6)
|
3
for 130
|
2
for 130
|
- | - | - | |||||||||||||||
Book
value
|
8.36 | 16.95 | 17.73 | 14.37 | 11.80 | |||||||||||||||
Tangible
book value
(5)
|
6.02 | 10.39 | 10.94 | 10.57 | 8.94 | |||||||||||||||
Key
performance ratios:
|
||||||||||||||||||||
Return
on equity (4)
|
(34.40 | ) % | (7.82 | ) % | 7.79 | % | 13.28 | % | 13.46 | % | ||||||||||
Return
on assets
|
(2.76 | ) | (.76 | ) | .75 | 1.09 | 1.04 | |||||||||||||
Net
interest margin
|
3.29 | 3.18 | 3.88 | 4.05 | 3.85 | |||||||||||||||
Operating
efficiency ratio (2)(3)
|
74.37 | 70.49 | 56.53 | 56.35 | 57.77 | |||||||||||||||
Equity
to assets
|
11.12 | 10.22 | 9.61 | 8.06 | 7.63 | |||||||||||||||
Tangible
equity to assets (5)
|
8.33 | 6.67 | 6.63 | 6.32 | 5.64 | |||||||||||||||
Tangible
common equity to assets (5)
|
6.15 | 6.57 | 6.63 | 6.32 | 5.64 | |||||||||||||||
Tangible
common equity to risk-weighted assets
(5)
|
10.39 | 8.34 | 8.21 | 8.09 | 7.75 | |||||||||||||||
ASSET
QUALITY *
|
||||||||||||||||||||
Non-performing
loans
|
$ | 264,092 | $ | 190,723 | $ | 28,219 | $ | 12,458 | $ | 11,997 | ||||||||||
Foreclosed
properties
|
120,770 | 59,768 | 18,039 | 1,196 | 998 | |||||||||||||||
Total
non-performing assets (NPAs)
|
384,862 | 250,491 | 46,258 | 13,654 | 12,995 | |||||||||||||||
Allowance
for loan losses
|
155,602 | 122,271 | 89,423 | 66,566 | 53,595 | |||||||||||||||
Operating
net charge-offs
(1)
|
276,669 | 151,152 | 21,834 | 5,524 | 5,701 | |||||||||||||||
Allowance
for loan losses to loans
|
3.02 | % | 2.14 | % | 1.51 | % | 1.24 | % | 1.22 | % | ||||||||||
Operating
net charge-offs to average loans
(1)
|
5.03 | 2.57 | .38 | .12 | .14 | |||||||||||||||
NPAs
to loans and foreclosed properties
|
7.30 | 4.35 | .78 | .25 | .30 | |||||||||||||||
NPAs
to total assets
|
4.81 | 2.92 | .56 | .19 | .22 | |||||||||||||||
AVERAGE
BALANCES
|
||||||||||||||||||||
Loans
|
$ | 5,547,915 | $ | 5,890,889 | $ | 5,734,608 | $ | 4,800,981 | $ | 4,061,091 | ||||||||||
Investment
securities
|
1,656,492 | 1,489,036 | 1,277,935 | 1,041,897 | 989,201 | |||||||||||||||
Earning
assets
|
7,464,639 | 7,504,186 | 7,070,900 | 5,877,483 | 5,109,053 | |||||||||||||||
Total
assets
|
8,269,387 | 8,319,201 | 7,730,530 | 6,287,148 | 5,472,200 | |||||||||||||||
Deposits
|
6,712,605 | 6,524,457 | 6,028,625 | 5,017,435 | 4,003,084 | |||||||||||||||
Shareholders’
equity
|
919,631 | 850,426 | 742,771 | 506,946 | 417,309 | |||||||||||||||
Common
shares - Basic
|
60,374 | 47,369 | 45,948 | 40,413 | 38,477 | |||||||||||||||
Common
shares - Diluted
|
60,374 | 47,369 | 46,593 | 41,575 | 39,721 | |||||||||||||||
AT
YEAR END
|
||||||||||||||||||||
Loans
*
|
$ | 5,151,476 | $ | 5,704,861 | $ | 5,929,263 | $ | 5,376,538 | $ | 4,398,286 | ||||||||||
Investment
securities
|
1,530,047 | 1,617,187 | 1,356,846 | 1,107,153 | 990,687 | |||||||||||||||
Total
assets
|
7,999,914 | 8,591,933 | 8,207,302 | 7,101,249 | 5,865,756 | |||||||||||||||
Deposits
|
6,627,834 | 7,003,624 | 6,075,951 | 5,772,886 | 4,477,600 | |||||||||||||||
Shareholders’
equity
|
962,321 | 989,382 | 831,902 | 616,767 | 472,686 | |||||||||||||||
Common
shares outstanding
|
94,046 | 48,009 | 46,903 | 42,891 | 40,020 |
(1) Excludes
pre-tax provision for fraud-related loan losses and related charge-offs of
$18 million, net of income tax benefit of $7 million in
2007. (2) Excludes the gain from acquisition of
$11.4 million, net of income tax expense of $4.3 million in 2009.
(3) Excludes the goodwill impairment charge of $95 million and
severance costs of $2.9 million, net of income tax benefit of $1.1 million
in 2009. (4) Net (loss) 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). (5) Excludes effect of
acquisition related intangibles and associated
amortization. (6) Number of new shares issued for
shares currently held.
|
||||||||
* Excludes
loans and foreclosed properties covered by loss sharing agreements with
the FDIC.
|
Selected
Financial Data (Continued)
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||||||||||
(in
thousands, except per share
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||||||||||||||
data;
taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||||||||||
INCOME
SUMMARY
|
||||||||||||||||||||||||||||||||
Interest
revenue
|
$ | 97,481 | $ | 101,181 | $ | 102,737 | $ | 103,562 | $ | 108,434 | $ | 112,510 | $ | 116,984 | $ | 129,041 | ||||||||||||||||
Interest
expense
|
33,552 | 38,177 | 41,855 | 46,150 | 56,561 | 53,719 | 55,231 | 62,754 | ||||||||||||||||||||||||
Net
interest revenue
|
63,929 | 63,004 | 60,882 | 57,412 | 51,873 | 58,791 | 61,753 | 66,287 | ||||||||||||||||||||||||
Provision
for loan losses
|
90,000 | 95,000 | 60,000 | 65,000 | 85,000 | 76,000 | 15,500 | 7,500 | ||||||||||||||||||||||||
Operating
fee revenue
(1)
|
17,221 | 15,671 | 13,050 | 12,846 | 10,718 | 13,121 | 15,105 | 14,197 | ||||||||||||||||||||||||
Total
operating revenue (1)
|
(8,850 | ) | (16,325 | ) | 13,932 | 5,258 | (22,409 | ) | (4,088 | ) | 61,358 | 72,984 | ||||||||||||||||||||
Operating
expenses
(2)
|
62,532 | 53,606 | 55,348 | 52,569 | 52,439 | 56,970 | 49,761 | 47,529 | ||||||||||||||||||||||||
Operating
loss before taxes
|
(71,382 | ) | (69,931 | ) | (41,416 | ) | (47,311 | ) | (74,848 | ) | (61,058 | ) | 11,597 | 25,455 | ||||||||||||||||||
Operating
income tax (benefit) expense
|
(31,547 | ) | (26,213 | ) | (18,353 | ) | (15,335 | ) | (28,101 | ) | (21,184 | ) | 4,504 | 9,377 | ||||||||||||||||||
Net operating (loss)
income
(1)(2)
|
(39,835 | ) | (43,718 | ) | (23,063 | ) | (31,976 | ) | (46,747 | ) | (39,874 | ) | 7,093 | 16,078 | ||||||||||||||||||
Gain
from acquisition, net of tax expense
|
- | - | 7,062 | - | - | - | - | - | ||||||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | (25,000 | ) | - | (70,000 | ) | - | - | - | - | ||||||||||||||||||||||
Severance
costs, net of tax benefit
|
- | - | - | (1,797 | ) | - | - | - | - | |||||||||||||||||||||||
Net
(loss) income
|
(39,835 | ) | (68,718 | ) | (16,001 | ) | (103,773 | ) | (46,747 | ) | (39,874 | ) | 7,093 | 16,078 | ||||||||||||||||||
Preferred
dividends and discount accretion
|
2,567 | 2,562 | 2,559 | 2,554 | 712 | 4 | 4 | 4 | ||||||||||||||||||||||||
Net
(loss) income available to
common
shareholders
|
$ | (42,402 | ) | $ | (71,280 | ) | $ | (18,560 | ) | $ | (106,327 | ) | $ | (47,459 | ) | $ | (39,878 | ) | $ | 7,089 | $ | 16,074 | ||||||||||
PERFORMANCE
MEASURES
|
||||||||||||||||||||||||||||||||
Per common share:
|
||||||||||||||||||||||||||||||||
Diluted
operating (loss) income
(1)(2)
|
$ | (.45 | ) | $ | (.93 | ) | $ | (.53 | ) | $ | (.71 | ) | $ | (.99 | ) | $ | (.84 | ) | $ | .15 | $ | .34 | ||||||||||
Diluted
(loss) income
|
(.45 | ) | (1.43 | ) | (.38 | ) | (2.20 | ) | (.99 | ) | (.84 | ) | .15 | .34 | ||||||||||||||||||
Cash
dividends declared
|
- | - | - | - | - | - | .09 | .09 | ||||||||||||||||||||||||
Stock
dividends declared
(6)
|
- |
1
for 130
|
1
for 130
|
1
for 130
|
1
for 130
|
1
for 130
|
- | - | ||||||||||||||||||||||||
Book
value
|
8.36 | 8.85 | 13.87 | 14.70 | 16.95 | 17.12 | 17.75 | 18.50 | ||||||||||||||||||||||||
Tangible
book value
(4)
|
6.02 | 6.50 | 8.85 | 9.65 | 10.39 | 10.48 | 11.03 | 11.76 | ||||||||||||||||||||||||
Key
performance ratios:
|
||||||||||||||||||||||||||||||||
Return
on equity
(3)(5)
|
(22.08 | ) % | (45.52 | ) % | (11.42 | ) % | (58.28 | ) % | (23.83 | ) % | (19.07 | ) % | 3.41 | % | 7.85 | % | ||||||||||||||||
Return
on assets
(5)
|
(1.91 | ) | (3.32 | ) | (.78 | ) | (5.03 | ) | (2.19 | ) | (1.94 | ) | .34 | .78 | ||||||||||||||||||
Net
interest margin
(5)
|
3.40 | 3.39 | 3.28 | 3.08 | 2.70 | 3.17 | 3.32 | 3.55 | ||||||||||||||||||||||||
Operating
efficiency ratio
(1)(2)
|
79.02 | 69.15 | 74.15 | 75.15 | 81.34 | 79.35 | 65.05 | 59.03 | ||||||||||||||||||||||||
Equity
to assets
|
11.94 | 10.27 | 10.71 | 11.56 | 10.04 | 10.26 | 10.32 | 10.28 | ||||||||||||||||||||||||
Tangible
equity to assets
(4)
|
9.53 | 7.55 | 7.96 | 8.24 | 6.56 | 6.64 | 6.76 | 6.72 | ||||||||||||||||||||||||
Tangible
common equity to assets
(4)
|
7.37 | 5.36 | 5.77 | 6.09 | 6.21 | 6.64 | 6.76 | 6.72 | ||||||||||||||||||||||||
Tangible
common equity to
|
||||||||||||||||||||||||||||||||
risk-weighted
assets
(4)
|
10.39 | 10.67 | 7.49 | 8.03 | 8.34 | 8.26 | 8.51 | 8.76 | ||||||||||||||||||||||||
ASSET
QUALITY *
|
||||||||||||||||||||||||||||||||
Non-performing
loans
|
$ | 264,092 | $ | 304,381 | $ | 287,848 | $ | 259,155 | $ | 190,723 | $ | 139,266 | $ | 123,786 | $ | 67,728 | ||||||||||||||||
Foreclosed
properties
|
120,770 | 110,610 | 104,754 | 75,383 | 59,768 | 38,438 | 28,378 | 22,136 | ||||||||||||||||||||||||
Total
non-performing assets (NPAs)
|
384,862 | 414,991 | 392,602 | 334,538 | 250,491 | 177,704 | 152,164 | 89,864 | ||||||||||||||||||||||||
Allowance
for loan losses
|
155,602 | 150,187 | 145,678 | 143,990 | 122,271 | 111,299 | 91,035 | 89,848 | ||||||||||||||||||||||||
Net
charge-offs
|
84,585 | 90,491 | 58,312 | 43,281 | 74,028 | 55,736 | 14,313 | 7,075 | ||||||||||||||||||||||||
Allowance
for loan losses to loans
|
3.02 | % | 2.80 | % | 2.64 | % | 2.56 | % | 2.14 | % | 1.91 | % | 1.53 | % | 1.51 | % | ||||||||||||||||
Net charge-offs to average loans
(5)
|
6.37 | 6.57 | 4.18 | 3.09 | 5.09 | 3.77 | .97 | .48 | ||||||||||||||||||||||||
NPAs to loans and foreclosed properties
|
7.30 | 7.58 | 6.99 | 5.86 | 4.35 | 3.03 | 2.55 | 1.50 | ||||||||||||||||||||||||
NPAs to total assets
|
4.81 | 4.91 | 4.63 | 4.09 | 2.92 | 2.19 | 1.84 | 1.07 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
AVERAGE
BALANCES
|
||||||||||||||||||||||||||||||||
Loans
|
$ | 5,357,150 | $ | 5,565,498 | $ | 5,597,259 | $ | 5,675,054 | $ | 5,784,139 | $ | 5,889,168 | $ | 5,933,143 | $ | 5,958,296 | ||||||||||||||||
Investment
securities
|
1,528,805 | 1,615,499 | 1,771,482 | 1,712,654 | 1,508,808 | 1,454,740 | 1,507,240 | 1,485,515 | ||||||||||||||||||||||||
Earning
assets
|
7,486,790 | 7,400,539 | 7,442,178 | 7,530,230 | 7,662,536 | 7,384,287 | 7,478,018 | 7,491,480 | ||||||||||||||||||||||||
Total
assets
|
8,286,544 | 8,208,199 | 8,212,140 | 8,372,281 | 8,487,017 | 8,164,694 | 8,298,517 | 8,326,428 | ||||||||||||||||||||||||
Deposits
|
6,835,052 | 6,689,948 | 6,544,537 | 6,780,531 | 6,982,229 | 6,597,339 | 6,461,361 | 6,051,069 | ||||||||||||||||||||||||
Shareholders’
equity
|
989,279 | 843,130 | 879,210 | 967,505 | 851,956 | 837,487 | 856,727 | 855,659 | ||||||||||||||||||||||||
Common
shares - basic
|
94,219 | 49,771 | 48,794 | 48,324 | 47,844 | 47,417 | 47,158 | 47,052 | ||||||||||||||||||||||||
Common
shares - diluted
|
94,219 | 49,771 | 48,794 | 48,324 | 47,844 | 47,417 | 47,249 | 47,272 | ||||||||||||||||||||||||
AT
PERIOD END
|
||||||||||||||||||||||||||||||||
Loans
*
|
$ | 5,151,476 | $ | 5,362,689 | $ | 5,513,087 | $ | 5,632,705 | $ | 5,704,861 | $ | 5,829,937 | $ | 5,933,141 | $ | 5,967,839 | ||||||||||||||||
Investment
securities
|
1,530,047 | 1,532,514 | 1,816,787 | 1,719,033 | 1,617,187 | 1,400,827 | 1,430,588 | 1,508,402 | ||||||||||||||||||||||||
Total
assets
|
7,999,914 | 8,443,617 | 8,477,355 | 8,171,663 | 8,591,933 | 8,113,961 | 8,276,165 | 8,390,546 | ||||||||||||||||||||||||
Deposits
|
6,627,834 | 6,821,306 | 6,848,760 | 6,616,488 | 7,003,624 | 6,689,335 | 6,696,456 | 6,175,769 | ||||||||||||||||||||||||
Shareholders’
equity
|
962,321 | 1,006,638 | 855,272 | 888,853 | 989,382 | 816,880 | 837,890 | 871,452 | ||||||||||||||||||||||||
Common
shares outstanding
|
94,046 | 93,901 | 48,933 | 48,487 | 48,009 | 47,596 | 47,096 | 47,004 |
(1) Excludes
the gain from acquisition of $11.4 million, net of income tax expense of
$4.3 million in the second quarter of
2009. (2) Excludes the goodwill impairment charges
of $25 million and $70 million in the third and first quarters of 2009,
respectively, and severance costs of $2.9 million, net of income tax
benefit of $1.1 million in the first quarter of
2009. (3) Net (loss) 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). (4) Excludes effect of
acquisition related intangibles and associated
amortization. (5) Annualized. (6) Number
of new shares issued for shares currently held.
|
||||||||||||||
*
Excludes loans and foreclosed properties covered by loss sharing
agreements with the FDIC.
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
|
Table
1 - Operating Earnings to GAAP Earnings Reconciliation -
Annual
|
Selected
Financial Information
|
(in
thousands, except per share data; taxable equivalent)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
Interest
revenue reconciliation
|
||||||||||||||||||||
Interest
revenue - taxable equivalent
|
$ | 404,961 | $ | 466,969 | $ | 550,917 | $ | 446,695 | $ | 324,225 | ||||||||||
Taxable
equivalent adjustment
|
(2,132 | ) | (2,261 | ) | (1,881 | ) | (1,868 | ) | (1,636 | ) | ||||||||||
Interest
revenue (GAAP)
|
$ | 402,829 | $ | 464,708 | $ | 549,036 | $ | 444,827 | $ | 322,589 | ||||||||||
Net
interest revenue reconciliation
|
||||||||||||||||||||
Net
interest revenue - taxable equivalent
|
$ | 245,227 | $ | 238,704 | $ | 274,483 | $ | 237,880 | $ | 196,799 | ||||||||||
Taxable
equivalent adjustment
|
(2,132 | ) | (2,261 | ) | (1,881 | ) | (1,868 | ) | (1,636 | ) | ||||||||||
Net
interest revenue (GAAP)
|
$ | 243,095 | $ | 236,443 | $ | 272,602 | $ | 236,012 | $ | 195,163 | ||||||||||
Provision
for loan losses reconciliation
|
||||||||||||||||||||
Operating
provision for loan losses
|
$ | 310,000 | $ | 184,000 | $ | 37,600 | $ | 14,600 | $ | 12,100 | ||||||||||
Special
fraud-related provision for loan losses
|
- | - | 18,000 | - | - | |||||||||||||||
Provision
for loan losses (GAAP)
|
$ | 310,000 | $ | 184,000 | $ | 55,600 | $ | 14,600 | $ | 12,100 | ||||||||||
Fee
revenue reconciliation
|
||||||||||||||||||||
Operating
fee revenue
|
$ | 58,788 | $ | 53,141 | $ | 62,651 | $ | 49,095 | $ | 46,148 | ||||||||||
Gain
from acquisition
|
11,390 | - | - | - | - | |||||||||||||||
Fee
revenue (GAAP)
|
$ | 70,178 | $ | 53,141 | $ | 62,651 | $ | 49,095 | $ | 46,148 | ||||||||||
Total
revenue reconciliation
|
||||||||||||||||||||
Total
operating revenue
|
$ | (5,985 | ) | $ | 107,845 | $ | 299,534 | $ | 272,375 | $ | 230,847 | |||||||||
Taxable
equivalent adjustment
|
(2,132 | ) | (2,261 | ) | (1,881 | ) | (1,868 | ) | (1,636 | ) | ||||||||||
Gain
from acquisition
|
11,390 | - | - | - | - | |||||||||||||||
Special
fraud-related provision for loan losses
|
- | - | (18,000 | ) | - | - | ||||||||||||||
Total
revenue (GAAP)
|
$ | 3,273 | $ | 105,584 | $ | 279,653 | $ | 270,507 | $ | 229,211 | ||||||||||
Expense
reconciliation
|
||||||||||||||||||||
Operating
expense
|
$ | 224,055 | $ | 206,699 | $ | 190,061 | $ | 162,070 | $ | 140,808 | ||||||||||
Noncash
goodwill impairment charge
|
95,000 | - | - | - | - | |||||||||||||||
Severance
costs
|
2,898 | - | - | - | - | |||||||||||||||
Operating
expense (GAAP)
|
$ | 321,953 | $ | 206,699 | $ | 190,061 | $ | 162,070 | $ | 140,808 | ||||||||||
(Loss)
income before taxes reconciliation
|
||||||||||||||||||||
Operating
(loss) income before taxes
|
$ | (230,040 | ) | $ | (98,854 | ) | $ | 109,473 | $ | 110,305 | $ | 90,039 | ||||||||
Taxable
equivalent adjustment
|
(2,132 | ) | (2,261 | ) | (1,881 | ) | (1,868 | ) | (1,636 | ) | ||||||||||
Gain
from acquisition
|
11,390 | - | - | - | - | |||||||||||||||
Noncash
goodwill impairment charge
|
(95,000 | ) | - | - | - | - | ||||||||||||||
Severance
costs
|
(2,898 | ) | - | - | - | - | ||||||||||||||
Special
fraud-related provision for loan losses
|
- | - | (18,000 | ) | - | - | ||||||||||||||
(Loss)
income before taxes (GAAP)
|
$ | (318,680 | ) | $ | (101,115 | ) | $ | 89,592 | $ | 108,437 | $ | 88,403 | ||||||||
Income
tax (benefit) expense reconciliation
|
||||||||||||||||||||
Operating
income tax (benefit) expense
|
$ | (91,448 | ) | $ | (35,404 | ) | $ | 40,482 | $ | 41,490 | $ | 33,297 | ||||||||
Taxable
equivalent adjustment
|
(2,132 | ) | (2,261 | ) | (1,881 | ) | (1,868 | ) | (1,636 | ) | ||||||||||
Gain
from acquisition, tax expense
|
4,328 | - | - | - | - | |||||||||||||||
Severance
costs, tax benefit
|
(1,101 | ) | - | - | - | - | ||||||||||||||
Special
fraud-related provision for loan losses
|
- | - | (7,002 | ) | - | - | ||||||||||||||
Income
tax (benefit) expense (GAAP)
|
$ | (90,353 | ) | $ | (37,665 | ) | $ | 31,599 | $ | 39,622 | $ | 31,661 | ||||||||
(Loss)
earnings per common share reconciliation
|
||||||||||||||||||||
Operating
(loss) earnings per common share
|
$ | (2.47 | ) | $ | (1.35 | ) | $ | 1.48 | $ | 1.66 | $ | 1.43 | ||||||||
Gain
from acquisition
|
.12 | - | - | - | - | |||||||||||||||
Noncash
goodwill impairment charge
|
(1.57 | ) | - | - | - | - | ||||||||||||||
Severance
costs
|
(.03 | ) | - | - | - | - | ||||||||||||||
Special
fraud-related provision for loan losses
|
- | - | (.24 | ) | - | - | ||||||||||||||
(Loss)
earnings per common share (GAAP)
|
$ | (3.95 | ) | $ | (1.35 | ) | $ | 1.24 | $ | 1.66 | $ | 1.43 | ||||||||
Book
value reconciliation
|
||||||||||||||||||||
Tangible
book value
|
$ | 6.02 | $ | 10.39 | $ | 10.94 | $ | 10.57 | $ | 8.94 | ||||||||||
Effect
of goodwill and other intangibles
|
2.34 | 6.56 | 6.79 | 3.80 | 2.86 | |||||||||||||||
Book
value (GAAP)
|
$ | 8.36 | $ | 16.95 | $ | 17.73 | $ | 14.37 | $ | 11.80 | ||||||||||
Efficiency
ratio reconciliation
|
||||||||||||||||||||
Operating
efficiency ratio
|
74.37 | % | 70.49 | % | 56.53 | % | 56.35 | % | 57.77 | % | ||||||||||
Gain
from acquisition
|
(2.71 | ) | - | - | - | - | ||||||||||||||
Noncash
goodwill impairment charge
|
30.39 | - | - | - | - | |||||||||||||||
Severance
costs
|
.93 | - | - | - | - | |||||||||||||||
Efficiency
ratio (GAAP)
|
102.98 | % | 70.49 | % | 56.53 | % | 56.35 | % | 57.77 | % | ||||||||||
Average
equity to assets reconciliation
|
||||||||||||||||||||
Tangible
common equity to assets
|
6.15 | % | 6.57 | % | 6.63 | % | 6.32 | % | 5.64 | % | ||||||||||
Effect
of preferred equity
|
2.18 | .10 | - | - | - | |||||||||||||||
Tangible
equity to assets
|
8.33 | 6.67 | 6.63 | 6.32 | 5.64 | |||||||||||||||
Effect
of goodwill and other intangibles
|
2.79 | 3.55 | 2.98 | 1.74 | 1.99 | |||||||||||||||
Equity
to assets (GAAP)
|
11.12 | % | 10.22 | % | 9.61 | % | 8.06 | % | 7.63 | % | ||||||||||
Actual
tangible common equity to risk-weighted assets
reconciliation
|
||||||||||||||||||||
Tangible
common equity to risk-weighted assets
|
10.39 | % | 8.34 | % | 8.21 | % | 8.09 | % | 7.75 | % | ||||||||||
Effect
of other comprehensive income
|
(.87 | ) | (.91 | ) | (.23 | ) | .07 | .23 | ||||||||||||
Effect
of deferred tax limitation
|
(1.27 | ) | - | - | - | - | ||||||||||||||
Effect
of trust preferred
|
.97 | .88 | .65 | .81 | .89 | |||||||||||||||
Effect
of preferred equity
|
3.19 | 2.90 | - | .01 | .01 | |||||||||||||||
Tier
I capital ratio (Regulatory)
|
12.41 | % | 11.21 | % | 8.63 | % | 8.98 | % | 8.88 | % | ||||||||||
Net
charge-offs reconciliation
|
||||||||||||||||||||
Operating
net charge-offs
|
$ | 276,669 | $ | 151,152 | $ | 21,834 | $ | 5,524 | $ | 5,701 | ||||||||||
Fraud
related charge-offs
|
- | - | 18,000 | - | - | |||||||||||||||
Net
charge-offs (GAAP)
|
$ | 276,669 | $ | 151,152 | $ | 39,834 | $ | 5,524 | $ | 5,701 | ||||||||||
Net
charge-offs to average loans reconciliation
|
||||||||||||||||||||
Operating
net charge-offs to average loans
|
5.03 | % | 2.57 | % | .38 | % | .12 | % | .14 | % | ||||||||||
Effect
of fraud related charge offs
|
- | - | .31 | - | - | |||||||||||||||
Net
charge-offs to average loans (GAAP)
|
5.03 | % | 2.57 | % | .69 | % | .12 | % | .14 | % |
Table
1 (Continued) - Operating Earnings to GAAP Earnings Reconciliation -
Quarterly
|
Selected
Financial Information
|
2009
|
2008
|
|||||||||||||||||||||||||||||||
(in
thousands, except per share
|
Fourth
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||||||||||||||
data;
taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||||||||||
Interest
revenue reconciliation
|
||||||||||||||||||||||||||||||||
Interest
revenue - taxable equivalent
|
$ | 97,481 | $ | 101,181 | $ | 102,737 | $ | 103,562 | $ | 108,434 | $ | 112,510 | $ | 116,984 | $ | 129,041 | ||||||||||||||||
Taxable
equivalent adjustment
|
(601 | ) | (580 | ) | (463 | ) | (488 | ) | (553 | ) | (571 | ) | (606 | ) | (531 | ) | ||||||||||||||||
Interest
revenue (GAAP)
|
$ | 96,880 | $ | 100,601 | $ | 102,274 | $ | 103,074 | $ | 107,881 | $ | 111,939 | $ | 116,378 | $ | 128,510 | ||||||||||||||||
Net
interest revenue reconciliation
|
||||||||||||||||||||||||||||||||
Net
interest revenue - taxable equivalent
|
$ | 63,929 | $ | 63,004 | $ | 60,882 | $ | 57,412 | $ | 51,873 | $ | 58,791 | $ | 61,753 | $ | 66,287 | ||||||||||||||||
Taxable
equivalent adjustment
|
(601 | ) | (580 | ) | (463 | ) | (488 | ) | (553 | ) | (571 | ) | (606 | ) | (531 | ) | ||||||||||||||||
Net
interest revenue (GAAP)
|
$ | 63,328 | $ | 62,424 | $ | 60,419 | $ | 56,924 | $ | 51,320 | $ | 58,220 | $ | 61,147 | $ | 65,756 | ||||||||||||||||
Fee
revenue reconciliation
|
||||||||||||||||||||||||||||||||
Operating
fee revenue
|
$ | 17,221 | $ | 15,671 | $ | 13,050 | $ | 12,846 | $ | 10,718 | $ | 13,121 | $ | 15,105 | $ | 14,197 | ||||||||||||||||
Gain
from acquisition
|
- | - | 11,390 | - | - | - | - | - | ||||||||||||||||||||||||
Fee
revenue (GAAP)
|
$ | 17,221 | $ | 15,671 | $ | 24,440 | $ | 12,846 | $ | 10,718 | $ | 13,121 | $ | 15,105 | $ | 14,197 | ||||||||||||||||
Total
revenue reconciliation
|
||||||||||||||||||||||||||||||||
Total
operating revenue
|
$ | (8,850 | ) | $ | (16,325 | ) | $ | 13,932 | $ | 5,258 | $ | (22,409 | ) | $ | (4,088 | ) | $ | 61,358 | $ | 72,984 | ||||||||||||
Taxable
equivalent adjustment
|
(601 | ) | (580 | ) | (463 | ) | (488 | ) | (553 | ) | (571 | ) | (606 | ) | (531 | ) | ||||||||||||||||
Gain
from acquisition
|
- | - | 11,390 | - | - | - | - | - | ||||||||||||||||||||||||
Total
revenue (GAAP)
|
$ | (9,451 | ) | $ | (16,905 | ) | $ | 24,859 | $ | 4,770 | $ | (22,962 | ) | $ | (4,659 | ) | $ | 60,752 | $ | 72,453 | ||||||||||||
Expense
reconciliation
|
||||||||||||||||||||||||||||||||
Operating
expense
|
$ | 62,532 | $ | 53,606 | $ | 55,348 | $ | 52,569 | $ | 52,439 | $ | 56,970 | $ | 49,761 | $ | 47,529 | ||||||||||||||||
Noncash
goodwill impairment charge
|
- | 25,000 | - | 70,000 | - | - | - | - | ||||||||||||||||||||||||
Severance
costs
|
- | - | - | 2,898 | - | - | - | - | ||||||||||||||||||||||||
Operating
expense (GAAP)
|
$ | 62,532 | $ | 78,606 | $ | 55,348 | $ | 125,467 | $ | 52,439 | $ | 56,970 | $ | 49,761 | $ | 47,529 | ||||||||||||||||
(Loss)
income before taxes
reconciliation |
||||||||||||||||||||||||||||||||
Operating
(loss) income before taxes
|
$ | (71,382 | ) | $ | (69,931 | ) | $ | (41,416 | ) | $ | (47,311 | ) | $ | (74,848 | ) | $ | (61,058 | ) | $ | 11,597 | $ | 25,455 | ||||||||||
Taxable
equivalent adjustment
|
(601 | ) | (580 | ) | (463 | ) | (488 | ) | (553 | ) | (571 | ) | (606 | ) | (531 | ) | ||||||||||||||||
Gain
from acquisition
|
- | - | 11,390 | - | - | - | - | - | ||||||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | (25,000 | ) | - | (70,000 | ) | - | - | - | - | ||||||||||||||||||||||
Severance
costs
|
- | - | - | (2,898 | ) | - | - | - | - | |||||||||||||||||||||||
(Loss)
income before taxes (GAAP)
|
$ | (71,983 | ) | $ | (95,511 | ) | $ | (30,489 | ) | $ | (120,697 | ) | $ | (75,401 | ) | $ | (61,629 | ) | $ | 10,991 | $ | 24,924 | ||||||||||
Income
tax (benefit) expense
reconciliation |
||||||||||||||||||||||||||||||||
Operating
income tax (benefit) expense
|
$ | (31,547 | ) | $ | (26,213 | ) | $ | (18,353 | ) | $ | (15,335 | ) | $ | (28,101 | ) | $ | (21,184 | ) | $ | 4,504 | $ | 9,377 | ||||||||||
Taxable
equivalent adjustment
|
(601 | ) | (580 | ) | (463 | ) | (488 | ) | (553 | ) | (571 | ) | (606 | ) | (531 | ) | ||||||||||||||||
Gain
from acquisition, tax expense
|
- | - | 4,328 | - | - | - | - | - | ||||||||||||||||||||||||
Severance
costs, tax benefit
|
- | - | - | (1,101 | ) | - | - | - | - | |||||||||||||||||||||||
Income
tax (benefit) expense (GAAP)
|
$ | (32,148 | ) | $ | (26,793 | ) | $ | (14,488 | ) | $ | (16,924 | ) | $ | (28,654 | ) | $ | (21,755 | ) | $ | 3,898 | $ | 8,846 | ||||||||||
(Loss)
earnings per common share
reconciliation |
||||||||||||||||||||||||||||||||
Operating
(loss) earnings per common share
|
$ | (.45 | ) | $ | (.93 | ) | $ | (.53 | ) | $ | (.71 | ) | $ | (.99 | ) | $ | (.84 | ) | $ | .15 | $ | .34 | ||||||||||
Gain
from acquisition
|
- | - | .15 | - | - | - | - | - | ||||||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | (.50 | ) | - | (1.45 | ) | - | - | - | - | ||||||||||||||||||||||
Severance
costs
|
- | - | - | (.04 | ) | - | - | - | - | |||||||||||||||||||||||
(Loss)
earnings per common share (GAAP)
|
$ | (.45 | ) | $ | (1.43 | ) | $ | (.38 | ) | $ | (2.20 | ) | $ | (.99 | ) | $ | (.84 | ) | $ | .15 | $ | .34 | ||||||||||
Book
value reconciliation
|
||||||||||||||||||||||||||||||||
Tangible
book value
|
$ | 6.02 | $ | 6.50 | $ | 8.85 | $ | 9.65 | $ | 10.39 | $ | 10.48 | $ | 11.03 | $ | 11.76 | ||||||||||||||||
Effect
of goodwill and other intangibles
|
2.34 | 2.35 | 5.02 | 5.05 | 6.56 | 6.64 | 6.72 | 6.74 | ||||||||||||||||||||||||
Book
value (GAAP)
|
$ | 8.36 | $ | 8.85 | $ | 13.87 | $ | 14.70 | $ | 16.95 | $ | 17.12 | $ | 17.75 | $ | 18.50 | ||||||||||||||||
Efficiency
ratio reconciliation
|
||||||||||||||||||||||||||||||||
Operating
efficiency ratio
|
79.02 | % | 69.15 | % | 74.15 | % | 75.15 | % | 81.34 | % | 79.35 | % | 65.05 | % | 59.03 | % | ||||||||||||||||
Gain
from acquisition
|
- | - | (9.82 | ) | - | - | - | - | - | |||||||||||||||||||||||
Noncash
goodwill impairment charge
|
- | 32.24 | - | 100.06 | - | - | - | - | ||||||||||||||||||||||||
Severance
costs
|
- | - | - | 4.14 | - | - | - | - | ||||||||||||||||||||||||
Efficiency
ratio (GAAP)
|
79.02 | % | 101.39 | % | 64.33 | % | 179.35 | % | 81.34 | % | 79.35 | % | 65.05 | % | 59.03 | % | ||||||||||||||||
Average
equity to assets reconciliation
|
||||||||||||||||||||||||||||||||
Tangible
common equity to assets
|
7.37 | % | 5.36 | % | 5.77 | % | 6.09 | % | 6.21 | % | 6.64 | % | 6.76 | % | 6.72 | % | ||||||||||||||||
Effect
of preferred equity
|
2.16 | 2.19 | 2.19 | 2.15 | .35 | - | - | - | ||||||||||||||||||||||||
Tangible
equity to assets
|
9.53 | 7.55 | 7.96 | 8.24 | 6.56 | 6.64 | 6.76 | 6.72 | ||||||||||||||||||||||||
Effect
of goodwill and other intangibles
|
2.41 | 2.72 | 2.75 | 3.32 | 3.48 | 3.62 | 3.56 | 3.56 | ||||||||||||||||||||||||
Equity
to assets (GAAP)
|
11.94 | % | 10.27 | % | 10.71 | % | 11.56 | % | 10.04 | % | 10.26 | % | 10.32 | % | 10.28 | % | ||||||||||||||||
Actual
tangible common equity to risk-weighted assets
reconciliation
|
||||||||||||||||||||||||||||||||
Tangible
common equity to risk-weighted assets
|
10.39 | % | 10.67 | % | 7.49 | % | 8.03 | % | 8.34 | % | 8.26 | % | 8.51 | % | 8.76 | % | ||||||||||||||||
Effect
of other comprehensive income
|
(.87 | ) | (.90 | ) | (.72 | ) | (1.00 | ) | (.91 | ) | (.28 | ) | (.01 | ) | (.62 | ) | ||||||||||||||||
Effect
of deferred tax limitation
|
(1.27 | ) | (.58 | ) | (.22 | ) | - | - | - | - | - | |||||||||||||||||||||
Effect
of trust preferred
|
.97 | .92 | .90 | .89 | .88 | .68 | .67 | .64 | ||||||||||||||||||||||||
Effect
of preferred equity
|
3.19 | 3.04 | 2.99 | 2.96 | 2.90 | - | - | - | ||||||||||||||||||||||||
Tier
I capital ratio (Regulatory)
|
12.41 | % | 13.15 | % | 10.44 | % | 10.88 | % | 11.21 | % | 8.66 | % | 9.17 | % | 8.78 | % |
Table
2 - Average Consolidated Balance Sheet and Net Interest Margin
Analysis
|
For
the Years Ended December 31,
|
(In
thousands, taxable equivalent)
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||
Average
|
Avg.
|
Average
|
Avg.
|
Average
|
Avg.
|
|||||||||||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Loans
(1)(2)
|
$ | 5,547,915 | $ | 322,284 | 5.81 | % | $ | 5,890,889 | $ | 386,132 | 6.55 | % | $ | 5,734,608 | $ | 481,590 | 8.40 | % | ||||||||||||||||||
Taxable
securities
(3)
|
1,626,032 | 76,048 | 4.68 | 1,455,206 | 74,405 | 5.11 | 1,236,595 | 64,377 | 5.21 | |||||||||||||||||||||||||||
Tax-exempt
securities (1)(3)
|
30,460 | 2,164 | 7.10 | 33,830 | 2,406 | 7.11 | 41,340 | 2,826 | 6.84 | |||||||||||||||||||||||||||
Federal
funds sold and other
|
||||||||||||||||||||||||||||||||||||
interest-earning
assets
|
260,232 | 4,465 | 1.72 | 124,261 | 4,026 | 3.24 | 58,357 | 2,124 | 3.64 | |||||||||||||||||||||||||||
Total
interest-earning assets
|
7,464,639 | 404,961 | 5.43 | 7,504,186 | 466,969 | 6.22 | 7,070,900 | 550,917 | 7.79 | |||||||||||||||||||||||||||
Non-interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
(146,535 | ) | (97,385 | ) | (81,378 | ) | ||||||||||||||||||||||||||||||
Cash
and due from banks
|
105,127 | 131,778 | 135,021 | |||||||||||||||||||||||||||||||||
Premises
and equipment
|
180,381 | 180,857 | 164,153 | |||||||||||||||||||||||||||||||||
Other
assets
(3)
|
665,775 | 579,894 | 441,834 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 8,269,387 | $ | 8,299,330 | $ | 7,730,530 | ||||||||||||||||||||||||||||||
Liabilities
and Shareholders’
Equity:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||||||||||||||
NOW
|
$ | 1,297,139 | $ | 11,023 | .85 | $ | 1,491,419 | $ | 28,626 | 1.92 | $ | 1,406,655 | $ | 45,142 | 3.21 | |||||||||||||||||||||
Money
market
|
589,389 | 9,545 | 1.62 | 426,988 | 10,643 | 2.49 | 399,838 | 15,396 | 3.85 | |||||||||||||||||||||||||||
Savings
deposits
|
177,410 | 483 | .27 | 182,067 | 764 | .42 | 188,560 | 1,653 | .88 | |||||||||||||||||||||||||||
Time
deposits less than $100,000
|
1,891,774 | 56,811 | 3.00 | 1,724,036 | 71,844 | 4.17 | 1,619,332 | 79,317 | 4.90 | |||||||||||||||||||||||||||
Time
deposits greater than $100,000
|
1,306,302 | 42,518 | 3.25 | 1,457,397 | 62,888 | 4.32 | 1,377,915 | 71,467 | 5.19 | |||||||||||||||||||||||||||
Brokered
deposits
|
756,122 | 20,997 | 2.78 | 565,111 | 23,536 | 4.16 | 337,323 | 16,616 | 4.93 | |||||||||||||||||||||||||||
Total
interest-bearing deposits
|
6,018,136 | 141,377 | 2.35 | 5,847,018 | 198,301 | 3.39 | 5,329,623 | 229,591 | 4.31 | |||||||||||||||||||||||||||
Federal
funds purchased,
|
||||||||||||||||||||||||||||||||||||
repurchase
agreeements,
|
||||||||||||||||||||||||||||||||||||
&
other short-term borrowings
|
177,589 | 2,842 | 1.60 | 324,634 | 7,699 | 2.37 | 308,372 | 16,236 | 5.27 | |||||||||||||||||||||||||||
Federal
Home Loan Bank advances
|
220,468 | 4,622 | 2.10 | 410,605 | 13,026 | 3.17 | 455,620 | 22,013 | 4.83 | |||||||||||||||||||||||||||
Long-term
debt
|
150,604 | 10,893 | 7.23 | 120,442 | 9,239 | 7.67 | 122,555 | 8,594 | 7.01 | |||||||||||||||||||||||||||
Total
borrowed funds
|
548,661 | 18,357 | 3.35 | 855,681 | 29,964 | 3.50 | 886,547 | 46,843 | 5.28 | |||||||||||||||||||||||||||
Total
interest-bearing liabilities
|
6,566,797 | 159,734 | 2.43 | 6,702,699 | 228,265 | 3.41 | 6,216,170 | 276,434 | 4.45 | |||||||||||||||||||||||||||
Non-interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Non-interest-bearing
deposits
|
694,469 | 677,439 | 699,002 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
88,490 | 68,766 | 72,587 | |||||||||||||||||||||||||||||||||
Total
liabilities
|
7,349,756 | 7,448,904 | 6,987,759 | |||||||||||||||||||||||||||||||||
Shareholders’
equity
|
919,631 | 850,426 | 742,771 | |||||||||||||||||||||||||||||||||
Total
liabilities
|
||||||||||||||||||||||||||||||||||||
and
shareholders’
equity
|
$ | 8,269,387 | $ | 8,299,330 | $ | 7,730,530 | ||||||||||||||||||||||||||||||
Net
interest revenue
|
$ | 245,227 | $ | 238,704 | $ | 274,483 | ||||||||||||||||||||||||||||||
Net
interest-rate spread
|
3.00 | % | 2.81 | % | 3.34 | % | ||||||||||||||||||||||||||||||
Net
interest margin (4)
|
3.29 | % | 3.18 | % | 3.88 | % | ||||||||||||||||||||||||||||||
(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 rate and the federal tax
adjusted state tax rate.
|
||||||||||||||||||||
(2) Included
in the average balance of loans outstanding are loans where the accrual of
interest has been discontinued.
|
||||||||||||||||||||
(3) Securities
available for sale are shown at amortized cost. Pretax
unrealized gains of $15.3 million and $3.3 million in 2009 and 2008,
resepectively
and
pretax unrealized losses of $8.1 million in 2007 are included in other
assets for purpose
|
||||||||||||||||||||
(4) Net
interest margin is taxable equivalent net-interest revenue divided by
average interest-earning assets.
|
Table
3 - Change in Interest Revenue and Interest Expense
|
(in
thousands, taxable equivalent)
|
2009
Compared to 2008
|
2008
Compared to 2007
|
|||||||||||||||||||||||
Increase
(decrease)
|
Increase
(decrease)
|
|||||||||||||||||||||||
due
to changes in
|
due
to changes in
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
Interest-earning
assets:
|
|
|
||||||||||||||||||||||
Loans
|
$ | (21,615 | ) | $ | (42,233 | ) | $ | (63,848 | ) | $ | 12,806 | $ | (108,264 | ) | $ | (95,458 | ) | |||||||
Taxable
securities
|
8,303 | (6,660 | ) | 1,643 | 11,196 | (1,168 | ) | 10,028 | ||||||||||||||||
Tax-exempt
securities
|
(239 | ) | (3 | ) | (242 | ) | (530 | ) | 110 | (420 | ) | |||||||||||||
Federal
funds sold and other
|
||||||||||||||||||||||||
interest-earning
assets
|
2,956 | (2,517 | ) | 439 | 2,159 | (257 | ) | 1,902 | ||||||||||||||||
Total
interest-earning assets
|
(10,595 | ) | (51,413 | ) | (62,008 | ) | 25,631 | (109,579 | ) | (83,948 | ) | |||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
NOW
|
(3,335 | ) | (14,268 | ) | (17,603 | ) | 2,578 | (19,094 | ) | (16,516 | ) | |||||||||||||
Money
Market
|
3,310 | (4,408 | ) | (1,098 | ) | 986 | (5,739 | ) | (4,753 | ) | ||||||||||||||
Savings
deposits
|
(19 | ) | (262 | ) | (281 | ) | (55 | ) | (834 | ) | (889 | ) | ||||||||||||
Time
deposits less than $100,000
|
6,486 | (21,519 | ) | (15,033 | ) | 4,897 | (12,370 | ) | (7,473 | ) | ||||||||||||||
Time
deposits greater than $100,000
|
(6,045 | ) | (14,325 | ) | (20,370 | ) | 3,945 | (12,524 | ) | (8,579 | ) | |||||||||||||
Brokered
deposits
|
6,620 | (9,159 | ) | (2,539 | ) | 9,809 | (2,889 | ) | 6,920 | |||||||||||||||
Total
interest-bearing deposits
|
7,017 | (63,941 | ) | (56,924 | ) | 22,160 | (53,450 | ) | (31,290 | ) | ||||||||||||||
Federal
funds purchased, repurchase agreements
|
||||||||||||||||||||||||
&
other short-term borrowings
|
(2,827 | ) | (2,030 | ) | (4,857 | ) | 815 | (9,352 | ) | (8,537 | ) | |||||||||||||
Federal
Home Loan Bank advances
|
(4,851 | ) | (3,553 | ) | (8,404 | ) | (2,008 | ) | (6,979 | ) | (8,987 | ) | ||||||||||||
Long-term
debt
|
2,206 | (552 | ) | 1,654 | (150 | ) | 795 | 645 | ||||||||||||||||
Total
borrowed funds
|
(5,472 | ) | (6,135 | ) | (11,607 | ) | (1,343 | ) | (15,536 | ) | (16,879 | ) | ||||||||||||
Total
interest-bearing liabilities
|
1,545 | (70,076 | ) | (68,531 | ) | 20,817 | (68,986 | ) | (48,169 | ) | ||||||||||||||
Increase
in net interest revenue
|
$ | (12,140 | ) | $ | 18,663 | $ | 6,523 | $ | 4,814 | $ | (40,593 | ) | $ | (35,779 | ) | |||||||||
Table 4 - Fee Revenue | ||||||||||||||||
For
the Years Ended December 31,
|
||||||||||||||||
(in
thousands)
|
|
|||||||||||||||
Change | ||||||||||||||||
2009
|
2008
|
2007
|
2009-2008 | |||||||||||||
Service
charges and fees
|
$ | 30,986 | $ | 31,683 | $ | 31,433 | (2 | )% | ||||||||
Mortgage
loan and related fees
|
8,959 | 7,103 | 8,537 | 26 | ||||||||||||
Consulting
fees
|
7,822 | 7,046 | 8,946 | 11 | ||||||||||||
Brokerage
fees
|
2,085 | 3,457 | 4,095 | (40 | ) | |||||||||||
Securities
gains, net
|
2,756 | 1,315 | 3,182 | 110 | ||||||||||||
Losses
on prepayment of borrowings
|
- | (2,714 | ) | (2,242 | ) | (100 | ) | |||||||||
Other
|
6,180 | 5,251 | 8,700 | 18 | ||||||||||||
Total
fee revenue before gain from acquisition
|
58,788 | 53,141 | 62,651 | 11 | ||||||||||||
Gain
from acquisition
|
11,390 | - | - | |||||||||||||
Total
fee revenue
|
$ | 70,178 | $ | 53,141 | $ | 62,651 | 32 | |||||||||
Table
5 - Operating Expenses
|
||||||||||||||||
For
the Years Ended December 31,
|
||||||||||||||||
(in
thousands)
|
|
|||||||||||||||
Change
|
||||||||||||||||
2009
|
2008
|
2007
|
2009-2008 | |||||||||||||
Salaries
and employee benefits
|
$ | 108,967 | $ | 110,574 | $ | 115,153 | (1 | )% | ||||||||
Communications
and equipment
|
15,038 | 15,490 | 15,483 | (3 | ) | |||||||||||
Occupancy
|
15,796 | 14,988 | 13,613 | 5 | ||||||||||||
Advertising
and public relations
|
4,220 | 6,117 | 7,524 | (31 | ) | |||||||||||
Postage,
printing and supplies
|
5,068 | 6,296 | 6,365 | (20 | ) | |||||||||||
Professional
fees
|
9,925 | 7,509 | 7,218 | 32 | ||||||||||||
Foreclosed
property
|
32,365 | 19,110 | 4,980 | 69 | ||||||||||||
FDIC
assessments and other regulatory charges
|
16,004 | 6,020 | 2,780 | 166 | ||||||||||||
Amortization
of intangibles
|
3,104 | 3,009 | 2,739 | 3 | ||||||||||||
Other
|
13,568 | 17,586 | 14,206 | (23 | ) | |||||||||||
Operating
expenses, before nonrecurring items
|
224,055 | 206,699 | 190,061 | 8 | ||||||||||||
Goodwill
impairment charges
|
95,000 | - | - | |||||||||||||
Severance
cost
|
2,898 | - | - | |||||||||||||
Total
operating expenses
|
$ | 321,953 | $ | 206,699 | $ | 190,061 | 56 | |||||||||
Table
6 - Loans Outstanding
|
||||||||||||||||||||
As
of December 31,
|
||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Loans
by Category
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
Commercial
(secured by real estate)
|
$ | 1,779,398 | $ | 1,626,966 | $ | 1,475,930 | $ | 1,229,910 | $ | 1,055,191 | ||||||||||
Commercial
(commercial and industrial)
|
390,520 | 410,529 | 417,715 | 295,698 | 236,882 | |||||||||||||||
Commercial
construction
|
362,566 | 499,663 | 527,123 | 469,432 | 359,450 | |||||||||||||||
Total
commercial
|
2,532,484 | 2,537,158 | 2,420,768 | 1,995,040 | 1,651,523 | |||||||||||||||
Residential
construction
|
1,050,065 | 1,478,679 | 1,829,506 | 1,864,153 | 1,379,540 | |||||||||||||||
Residential
mortgage
|
1,427,198 | 1,526,388 | 1,501,916 | 1,337,728 | 1,205,685 | |||||||||||||||
Installment
|
141,729 | 162,636 | 177,073 | 179,617 | 161,538 | |||||||||||||||
Total
loans
|
$ | 5,151,476 | $ | 5,704,861 | $ | 5,929,263 | $ | 5,376,538 | $ | 4,398,286 | ||||||||||
Loans
by Market
|
2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Atlanta
MSA
|
$ | 1,435,223 | $ | 1,705,561 | $ | 2,002,089 | $ | 1,651,465 | $ | 1,207,177 | ||||||||||
Gainesville
MSA
|
389,766 | 420,169 | 399,560 | 353,559 | 248,618 | |||||||||||||||
North
Georgia
|
1,883,880 | 2,040,082 | 2,060,224 | 2,033,553 | 1,789,757 | |||||||||||||||
North
Carolina
|
771,709 | 809,863 | 805,999 | 773,301 | 668,560 | |||||||||||||||
East
Tennessee
|
265,209 | 265,544 | 245,769 | 207,001 | 177,728 | |||||||||||||||
Coastal
Georgia
|
405,689 | 463,642 | 415,622 | 357,659 | 306,446 | |||||||||||||||
Total
loans
|
$ | 5,151,476 | $ | 5,704,861 | $ | 5,929,263 | $ | 5,376,538 | $ | 4,398,286 | ||||||||||
Table
7 - Loan Portfolio Maturity
|
|||||||||||||
As
of December 31, 2009
|
|||||||||||||
(in
thousands)
|
Rate
Structure for Loans
|
||||||||||||||||||||||||
Maturity
|
Maturing
Over One Year
|
|||||||||||||||||||||||
One
Year
|
One
through
|
Over
Five
|
Fixed
|
Floating
|
||||||||||||||||||||
or
Less
|
Five
Years
|
Years
|
Total
|
Rate
|
Rate
|
|||||||||||||||||||
Commercial
(commercial and industrial)
|
$ | 211,785 | $ | 116,101 | $ | 62,634 | $ | 390,520 | $ | 116,901 | $ | 61,834 | ||||||||||||
Construction
(commercial and residential)
|
1,070,499 | 233,698 | 108,434 | 1,412,631 | 172,714 | 169,418 | ||||||||||||||||||
Total
|
$ | 1,282,284 | $ | 349,799 | $ | 171,068 | $ | 1,803,151 | $ | 289,615 | $ | 231,252 | ||||||||||||
Table
8 - Performing Substandard Loans
|
||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||
December
31,
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
||||||||||||||||
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||
Commercial
(sec. by RE)
|
$ | 123,738 | $ | 93,454 | $ | 69,657 | $ | 65,211 | $ | 43,228 | ||||||||||
Commercial
construction
|
51,696 | 50,888 | 36,316 | 31,733 | 15,552 | |||||||||||||||
Commercial
& industrial
|
33,976 | 34,491 | 11,814 | 14,931 | 20,694 | |||||||||||||||
Total
commercial
|
209,410 | 178,833 | 117,787 | 111,875 | 79,474 | |||||||||||||||
Residential
construction
|
196,909 | 207,711 | 148,094 | 138,353 | 159,963 | |||||||||||||||
Residential
mortgage
|
79,579 | 83,504 | 71,959 | 62,374 | 51,291 | |||||||||||||||
Installment
|
3,554 | 3,199 | 3,466 | 3,222 | 3,052 | |||||||||||||||
Total
|
$ | 489,452 | $ | 473,247 | $ | 341,306 | $ | 315,824 | $ | 293,780 | ||||||||||
Table
9 - Allocation of Allowance for Loan Losses
|
As
of December 31,
|
(in
thousands)
|
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||||
Amount
|
%* |
Amount
|
%* |
Amount
|
%* |
Amount
|
%* |
Amount
|
%* | |||||||||||||||||||||||||||||||
Commercial
(commercial and industrial)
|
$ | 6,892 | 8 | $ | 8,512 | 7 | $ | 7,902 | 7 | $ | 5,758 | 6 | $ | 4,492 | 5 | |||||||||||||||||||||||||
Commercial
(secured by real estate)
|
19,208 | 34 | 8,948 | 28 | 9,520 | 25 | 14,716 | 23 | 12,401 | 24 | ||||||||||||||||||||||||||||||
Total
commercial
|
26,100 | 42 | 17,460 | 35 | 17,422 | 32 | 20,474 | 29 | 16,893 | 29 | ||||||||||||||||||||||||||||||
Construction
|
99,446 | 27 | 71,573 | 35 | 38,183 | 40 | 25,181 | 43 | 20,787 | 40 | ||||||||||||||||||||||||||||||
Residential
mortgage
|
17,266 | 28 | 18,364 | 27 | 19,611 | 25 | 11,323 | 25 | 9,049 | 27 | ||||||||||||||||||||||||||||||
Installment
|
2,545 | 3 | 3,756 | 3 | 3,823 | 3 | 3,245 | 3 | 2,088 | 4 | ||||||||||||||||||||||||||||||
Unallocated
|
10,245 | 11,118 | 10,384 | 6,343 | 4,778 | |||||||||||||||||||||||||||||||||||
Total
allowance for loan losses
|
$ | 155,602 | 100 | $ | 122,271 | 100 | $ | 89,423 | 100 | $ | 66,566 | 100 | $ | 53,595 | 100 |
* Loan
balance in each category, expressed as a percentage of total
loans.
|
Table 10 - Allowance for Loan
Losses
Years Ended December 31,
(in
thousands)
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Balance
beginning of period
|
$ | 122,271 | $ | 89,423 | $ | 66,566 | $ | 53,595 | $ | 47,196 | ||||||||||
Provision
for loan losses
|
310,000 | 184,000 | 55,600 | 14,600 | 12,100 | |||||||||||||||
Allowance
for loan losses acquired from
|
||||||||||||||||||||
subsidiaries
at merger date
|
- | - | 7,091 | 3,895 | - | |||||||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial
(commercial and industrial)
|
11,322 | 5,197 | 1,188 | 1,157 | 1,266 | |||||||||||||||
Commercial
(secured by real estate)
|
21,796 | 5,843 | 688 | 1,138 | 877 | |||||||||||||||
Commercial
construction
|
9,908 | 1,796 | 245 | 11 | 3 | |||||||||||||||
Residential
construction
|
219,168 | 123,771 | 30,351 | 179 | 1,198 | |||||||||||||||
Residential
mortgage
|
18,997 | 12,995 | 7,022 | 2,111 | 1,653 | |||||||||||||||
Installment
|
5,115 | 3,275 | 2,200 | 3,027 | 2,217 | |||||||||||||||
Total
loans charged-off
|
286,306 | 152,877 | 41,694 | 7,623 | 7,214 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial
(commercial and industrial)
|
5,397 | 61 | 187 | 177 | 309 | |||||||||||||||
Commercial
(secured by real estate)
|
520 | 72 | 97 | 123 | 289 | |||||||||||||||
Commercial
construction
|
12 | 4 | 1 | - | 1 | |||||||||||||||
Residential
construction
|
2,253 | 653 | 117 | 949 | 11 | |||||||||||||||
Residential
mortgage
|
411 | 224 | 486 | 113 | 252 | |||||||||||||||
Installment
|
1,044 | 711 | 972 | 737 | 651 | |||||||||||||||
Total
recoveries
|
9,637 | 1,725 | 1,860 | 2,099 | 1,513 | |||||||||||||||
Net
charge-offs
|
276,669 | 151,152 | 39,834 | 5,524 | 5,701 | |||||||||||||||
Balance
end of period
|
$ | 155,602 | $ | 122,271 | $ | 89,423 | $ | 66,566 | $ | 53,595 | ||||||||||
Total
loans **:
|
||||||||||||||||||||
At
year-end
|
$ | 5,151,476 | $ | 5,704,861 | $ | 5,929,263 | $ | 5,376,538 | $ | 4,398,286 | ||||||||||
Average
|
5,501,165 | 5,890,889 | 5,734,608 | 4,800,981 | 4,061,091 | |||||||||||||||
Allowance
as a percentage of year-
|
||||||||||||||||||||
end
loans
|
3.02 | % | 2.14 | % | 1.51 | % | 1.24 | % | 1.22 | % | ||||||||||
As
a percentage of average loans:
|
||||||||||||||||||||
Net
charge-offs
|
5.03 | 2.57 | .69 | .12 | .14 | |||||||||||||||
Provision
for loan losses
|
5.64 | 3.12 | .97 | .30 | .30 | |||||||||||||||
Allowance
as a percentage of
|
||||||||||||||||||||
non-performing
loans
|
59 | * | 64 | * | 317 | 534 | 447 |
*
- Excluding impaired loans with no allocated reserve, the
coverage ratio was 190% and 125% at December 31, 2009 and 2008,
respectively.
|
|||||||||||||||
**
- Excludes loans acquired through the FDIC assisted acquisition of
Southern Community Bank that are covered by loss sharing
agreements.
|
Table
11 - Non-Performing Assets
|
||||||||||||||||||||
As
of December 31,
|
||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Non-accrual
loans (NPLs)
|
$ | 264,092 | $ | 190,723 | $ | 28,219 | $ | 12,458 | $ | 11,997 | ||||||||||
Loans
past due 90 days or more and still accruing
|
- | - | - | - | - | |||||||||||||||
Total
non-performing loans
|
264,092 | 190,723 | 28,219 | 12,458 | 11,997 | |||||||||||||||
Foreclosed
property
|
120,770 | 59,768 | 18,039 | 1,196 | 998 | |||||||||||||||
Total
non-performing assets (NPAs)
|
$ | 384,862 | $ | 250,491 | $ | 46,258 | $ | 13,654 | $ | 12,995 | ||||||||||
NPLs
as a percentage of total loans
|
5.13 | % | 3.34 | % | .48 | % | .23 | % | .27 | % | ||||||||||
NPAs
as a percentage of loans and foreclosed properties
|
7.30 | 4.35 | .78 | .25 | .30 | |||||||||||||||
NPAs
as a percentage of total assets
|
4.81 | 2.92 | .56 | .19 | .22 |
Table
12 - Nonperforming Assets by Quarter
|
(in
thousands)
|
December
31, 2009
(1)
|
September
30, 2009
(1)
|
June
30, 2009
(1)
|
March
31, 2009
|
December
31, 2008
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
||||||||||||||||||||||||||||||||||||||||||||||
BY
CATEGORY
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial
(sec. by RE)
|
$ | 37,040 | $ | 15,842 | $ | 52,882 | $ | 38,379 | $ | 12,566 | $ | 50,945 | $ | 37,755 | $ | 5,395 | $ | 43,150 | $ | 18,188 | $ | 3,811 | $ | 21,999 | $ | 15,188 | $ | 2,427 | $ | 17,615 | ||||||||||||||||||||||||||||||
Commercial
construction
|
19,976 | 9,761 | 29,737 | 38,505 | 5,543 | 44,048 | 15,717 | 5,847 | 21,564 | 6,449 | 2,948 | 9,397 | 1,513 | 2,333 | 3,846 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial
& industrial
|
3,946 | - | 3,946 | 3,794 | - | 3,794 | 11,378 | - | 11,378 | 12,066 | - | 12,066 | 1,920 | - | 1,920 | |||||||||||||||||||||||||||||||||||||||||||||
Total
commercial
|
60,962 | 25,603 | 86,565 | 80,678 | 18,109 | 98,787 | 64,850 | 11,242 | 76,092 | 36,703 | 6,759 | 43,462 | 18,621 | 4,760 | 23,381 | |||||||||||||||||||||||||||||||||||||||||||||
Residential
construction
|
142,332 | 76,519 | 218,851 | 171,027 | 79,045 | 250,072 | 176,400 | 81,648 | 258,048 | 187,656 | 58,327 | 245,983 | 144,836 | 48,572 | 193,408 | |||||||||||||||||||||||||||||||||||||||||||||
Residential
mortgage
|
58,767 | 18,648 | 77,415 | 50,626 | 13,456 | 64,082 | 44,256 | 11,864 | 56,120 | 33,148 | 10,297 | 43,445 | 25,574 | 6,436 | 32,010 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer
/ installment
|
2,031 | - | 2,031 | 2,050 | - | 2,050 | 2,342 | - | 2,342 | 1,648 | - | 1,648 | 1,692 | - | 1,692 | |||||||||||||||||||||||||||||||||||||||||||||
Total
NPAs
|
$ | 264,092 | $ | 120,770 | $ | 384,862 | $ | 304,381 | $ | 110,610 | $ | 414,991 | $ | 287,848 | $ | 104,754 | $ | 392,602 | $ | 259,155 | $ | 75,383 | $ | 334,538 | $ | 190,723 | $ | 59,768 | $ | 250,491 | ||||||||||||||||||||||||||||||
BY
MARKET
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlanta
MSA
|
$ | 106,536 | $ | 41,125 | $ | 147,661 | $ | 120,599 | $ | 54,670 | $ | 175,269 | $ | 148,155 | $ | 50,450 | $ | 198,605 | $ | 131,020 | $ | 48,574 | $ | 179,594 | $ | 105,476 | $ | 42,336 | $ | 147,812 | ||||||||||||||||||||||||||||||
Gainesville
MSA
|
5,074 | 2,614 | 7,688 | 12,916 | 8,429 | 21,345 | 9,745 | 3,511 | 13,256 | 17,448 | 694 | 18,142 | 16,208 | 1,110 | 17,318 | |||||||||||||||||||||||||||||||||||||||||||||
North
Georgia
|
87,598 | 53,072 | 140,670 | 96,373 | 36,718 | 133,091 | 72,174 | 37,454 | 109,628 | 66,875 | 20,811 | 87,686 | 31,631 | 12,785 | 44,416 | |||||||||||||||||||||||||||||||||||||||||||||
Western
North Carolina
|
29,610 | 5,096 | 34,706 | 25,775 | 5,918 | 31,693 | 21,814 | 7,245 | 29,059 | 21,240 | 3,067 | 24,307 | 18,509 | 2,986 | 21,495 | |||||||||||||||||||||||||||||||||||||||||||||
Coastal
Georgia
|
26,871 | 17,150 | 44,021 | 38,414 | 3,045 | 41,459 | 30,311 | 3,904 | 34,215 | 15,699 | 1,286 | 16,985 | 11,863 | 138 | 12,001 | |||||||||||||||||||||||||||||||||||||||||||||
East
Tennessee
|
8,403 | 1,713 | 10,116 | 10,304 | 1,830 | 12,134 | 5,649 | 2,190 | 7,839 | 6,873 | 951 | 7,824 | 7,036 | 413 | 7,449 | |||||||||||||||||||||||||||||||||||||||||||||
Total
NPAs
|
$ | 264,092 | $ | 120,770 | $ | 384,862 | $ | 304,381 | $ | 110,610 | $ | 414,991 | $ | 287,848 | $ | 104,754 | $ | 392,602 | $ | 259,155 | $ | 75,383 | $ | 334,538 | $ | 190,723 | $ | 59,768 | $ | 250,491 |
(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.
|
Table
13 - Activity in Nonperforming Assets by Quarter
|
(in
thousands)
|
Fourth
Quarter 2009 (1)
|
Third
Quarter 2009 (1)
|
Second
Quarter 2009 (1)
|
First
Quarter 2009
|
|||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
Nonaccrual
|
Foreclosed
|
Total
|
|||||||||||||||||||||||||||||||||||||
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
|||||||||||||||||||||||||||||||||||||
Beginning
Balance
|
$ | 304,381 | $ | 110,610 | $ | 414,991 | $ | 287,848 | $ | 104,754 | $ | 392,602 | $ | 259,155 | $ | 75,383 | $ | 334,538 | $ | 190,723 | $ | 59,768 | $ | 250,491 | ||||||||||||||||||||||||
Loans
placed on non-accrual
|
174,898 | - | 174,898 | 190,164 | - | 190,164 | 169,351 | - | 169,351 | 175,759 | - | 175,759 | ||||||||||||||||||||||||||||||||||||
Payments
received
|
(26,935 | ) | - | (26,935 | ) | (16,597 | ) | - | (16,597 | ) | (15,597 | ) | - | (15,597 | ) | (24,778 | ) | - | (24,778 | ) | ||||||||||||||||||||||||||||
Loan
charge-offs
|
(88,427 | ) | - | (88,427 | ) | (92,359 | ) | - | (92,359 | ) | (60,644 | ) | - | (60,644 | ) | (43,807 | ) | - | (43,807 | ) | ||||||||||||||||||||||||||||
Foreclosures
|
(79,983 | ) | 79,983 | - | (56,624 | ) | 56,624 | - | (64,417 | ) | 64,417 | - | (38,742 | ) | 38,742 | - | ||||||||||||||||||||||||||||||||
Capitalized
costs
|
- | 981 | 981 | - | 579 | 579 | - | 1,324 | 1,324 | - | 1,452 | 1,452 | ||||||||||||||||||||||||||||||||||||
Foreclosed
property sales
|
(19,842 | ) | (61,228 | ) | (81,070 | ) | (8,051 | ) | (47,240 | ) | (55,291 | ) | - | (33,752 | ) | (33,752 | ) | - | (22,999 | ) | (22,999 | ) | ||||||||||||||||||||||||||
Write
downs
|
- | (2,209 | ) | (2,209 | ) | - | (1,906 | ) | (1,906 | ) | - | (2,738 | ) | (2,738 | ) | - | (2,151 | ) | (2,151 | ) | ||||||||||||||||||||||||||||
Net
gains (losses) on sales
|
- | (7,367 | ) | (7,367 | ) | - | (2,201 | ) | (2,201 | ) | - | 120 | 120 | - | 571 | 571 | ||||||||||||||||||||||||||||||||
Ending
Balance
|
$ | 264,092 | $ | 120,770 | $ | 384,862 | $ | 304,381 | $ | 110,610 | $ | 414,991 | $ | 287,848 | $ | 104,754 | $ | 392,602 | $ | 259,155 | $ | 75,383 | $ | 334,538 |
(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.
|
Table
14 - Carrying Value of Investment Securities
|
||||||||
As
of December 31,
|
||||||||
(in
thousands)
|
||||||||
2009
|
2008
|
|||||||
Securities
available for sale:
|
||||||||
U.S.
Government agencies
|
$ | 246,466 | $ | 168,385 | ||||
State
and political subdivisions
|
63,293 | 43,740 | ||||||
Mortgage-backed
securities
|
1,197,222 | 1,379,156 | ||||||
Other
|
23,066 | 25,906 | ||||||
Total
securities available for sale
|
$ | 1,530,047 | $ | 1,617,187 |
Table
15 - Maturities of Time Deposits of $100,000 and Greater and Brokered
Deposits
|
||||
As
of December 31, 2009
|
||||
(in
thousands)
|
||||
$100,000
and greater:
|
||||
Three
months or less
|
$ |
392,582
|
||
Three
to six months
|
135,418
|
|||
Six
to twelve months
|
482,679
|
|||
Over
one year
|
176,820
|
|||
Total
|
$ |
1,187,499
|
||
Brokered
deposits:
|
||||
Three
months or less
|
$ |
123,931
|
||
Three
to six months
|
26,074
|
|||
Six
to twelve months
|
427,895
|
|||
Over
one year
|
180,980
|
|||
Total
|
$ |
758,880
|
Table
16 - Short-Term Borrowings
|
||||||||||||||||||||
As
of December 31,
|
||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
December 31,
2009
|
Period-end
balance
|
Period
end
weighted-
average
interest
rate
|
Maximum
outstanding
at
any month-
end
|
Average
amounts
outstanding
during
the
year
|
Weighted-
average
rate
for
the year
|
|||||||||||||||
Federal
funds purchased
|
$ | - | - | % | $ | 58,000 | $ | 33,439 | .29 | % | ||||||||||
Repurchase
agreements
|
101,389 | 4.12 | 102,665 | 101,725 | 2.59 | |||||||||||||||
Other
|
- | - | 175,000 | 42,425 | .25 | |||||||||||||||
$ | 101,389 | $ | 177,589 | |||||||||||||||||
December 31,
2008
|
||||||||||||||||||||
Federal
funds purchased
|
8,197 | .27 | 294,205 | 147,459 | 2.78 | |||||||||||||||
Line
of credit
|
- | - | - | 3,350 | 5.75 | |||||||||||||||
Repurchase
agreements
|
100,214 | 2.00 | 150,960 | 114,516 | 1.43 | |||||||||||||||
Other
|
- | - | 215,000 | 59,309 | 2.98 | |||||||||||||||
$ | 108,411 | $ | 324,634 | |||||||||||||||||
December 31,
2007
|
||||||||||||||||||||
Federal
funds purchased
|
$ | 343,834 | 4.29 | 366,447 | $ | 186,795 | 5.05 | |||||||||||||
Line
of credit
|
42,000 | 7.24 | 42,000 | 10,142 | 7.26 | |||||||||||||||
Repurchase
agreements
|
102,628 | 3.01 | 149,070 | 111,435 | 4.96 | |||||||||||||||
Other
|
150,000 | 4.23 | 150,000 | 11,904 | 4.52 | |||||||||||||||
$ | 638,462 | $ | 320,276 |
Table
17 - Contractual Obligations and Other Commitments
|
||||||||||||||||||||
As
of December 31, 2009
|
||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Maturity
By Years
|
||||||||||||||||||||
Total
|
1
or Less
|
1
to 3
|
3
to 5
|
Over
5
|
||||||||||||||||
Contractual
Cash Obligations
|
||||||||||||||||||||
FHLB
advances
|
$ | 114,501 | $ | 10,079 | $ | 74,297 | $ | 30,000 | $ | 125 | ||||||||||
Long-term
debt
|
150,066 | - | 30,500 | - | 119,566 | |||||||||||||||
Operating
leases
|
13,043 | 2,949 | 4,941 | 2,737 | 2,416 | |||||||||||||||
Total
contractual cash obligations
|
$ | 277,610 | $ | 13,028 | $ | 109,738 | $ | 32,737 | $ | 122,107 | ||||||||||
Other
Commitments
|
||||||||||||||||||||
Lines
of credit
|
$ | 569,408 | $ | 304,365 | $ | 76,736 | $ | 21,882 | $ | 166,425 | ||||||||||
Commercial
letters of credit
|
22,624 | 17,156 | 5,464 | 4 | - | |||||||||||||||
Uncertain
tax positions
|
9,594 | 3,545 | 3,929 | 2,120 | - | |||||||||||||||
Total
other commitments
|
$ | 601,626 | $ | 325,066 | $ | 86,129 | $ | 24,006 | $ | 166,425 |
Table
18 - Capital Ratios
|
||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||
United
Community Banks, Inc.
(Consolidated)
|
United
Community Bank
|
|||||||||||||||||||||||
Regulatory
|
||||||||||||||||||||||||
Guidelines
|
||||||||||||||||||||||||
Well
|
As
of December 31,
|
As
of December 31,
|
||||||||||||||||||||||
Minimum
|
Capitalized
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Risk-based
ratios:
|
||||||||||||||||||||||||
Tier
I capital
|
4.0% | 6.0% | 12.41 | % | 11.21 | % | 13.19 | % | 11.42 | % | ||||||||||||||
Total
capital
|
8.0 | 10.0 | 15.09 | 13.87 | 15.01 | 13.18 | ||||||||||||||||||
Leverage
ratio
|
3.0 | 5.0 | 8.50 | 8.26 | 8.81 | 8.36 | ||||||||||||||||||
Tier
I capital
|
$ | 679,552 | $ | 671,667 | $ | 720,075 | $ | 690,905 | ||||||||||||||||
Total
capital
|
826,251 | 831,046 | 819,415 | 797,079 |
Table 19 - Expected Maturity of Available for Sale Investment Securities | |||||||||||||||||||||
As of December 31, 2009 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Maturity
By Years
|
|||||||||||||||||||||
1
or Less
|
1
to 5
|
5
to 10
|
Over
10
|
Total
|
|||||||||||||||||
U.S.
Government agencies
|
$ | - | $ | 42,092 | $ | 180,492 | $ | 23,882 | $ | 246,466 | |||||||||||
State
and political subdivisions
|
18,710 | 14,120 | 21,233 | 9,230 | 63,293 | ||||||||||||||||
Other
securities
(1)
|
39,853 | 936,664 | 161,412 | 82,359 | 1,220,288 | ||||||||||||||||
Total
securities available for sale
|
$ | 58,563 | $ | 992,876 | $ | 363,137 | $ | 115,471 | $ | 1,530,047 | |||||||||||
Weighted
average yield
(2)
|
4.90 | % | 4.82 | % | 4.13 | % | 4.85 | % | 4.66 | % |
(1)
|
Includes
mortgage-backed securities
|
||||||||||
(2)
|
Based
on amortized cost, taxable equivalent basis
|
Table 20 - Derivative Financial Instruments | |||||||||||||||||
As
of December 31, 2009 (dollars in thousands)
|
|||||||||||||||||
Type/Maturity
|
Notional
Amount
|
Rate
Received
/
Floor
Rate
|
Rate
Paid
|
Fair
Value
(5)
|
|||||||||||||
Fair
Value Hedges:
|
|||||||||||||||||
LIBOR
Swaps (Brokered CDs)
|
|||||||||||||||||
August
27, 2010
(1)
|
$ | 50,000 | 4.30 | % | 1.31 | % | $ | 917 | |||||||||
September
22, 2010
(2)
|
50,000 | 4.25 | 1.48 | 924 | |||||||||||||
September
30, 2010
(1)
|
95,000 | 4.25 | 1.31 | 1,919 | |||||||||||||
Total
Fair Value Hedges
|
195,000 | 4.26 | 1.35 | 3,760 | |||||||||||||
Cash
Flow Hedges:
|
|||||||||||||||||
Prime
Swaps (Prime Loans)
(3)
|
|||||||||||||||||
July
22, 2013
|
75,000 | 6.88 | 3.25 | 4,761 | |||||||||||||
July
25, 2013
|
25,000 | 6.91 | 3.25 | 1,610 | |||||||||||||
Total
|
100,000 | 6.89 | 3.25 | 6,371 | |||||||||||||
Prime
Floors (Prime Loans)
(4)
|
|||||||||||||||||
February
4, 2010
|
100,000 | 8.75 | 561 | ||||||||||||||
Total
|
100,000 | 561 | |||||||||||||||
Total
Cash Flow Hedges
|
200,000 | 6,932 | |||||||||||||||
Total
Derivative Contracts
|
$ | 395,000 | $ | 10,692 | |||||||||||||
(1)
Rate Paid equals 1-Month LIBOR plus 1.075
|
|||||
(2)
Rate Paid equals 1-Month LIBOR plus 1.2435
|
|||||
(3)
Rate Paid equals Prime rate as of December 31, 2009
|
|||||
(4)
Floor contracts receive cash payments equal to the floor rate less the
prime rate
|
|||||
(5)
Excludes accrued interest
|
|||||
●
|
Pertain
to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of the assets of the
company;
|
●
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America, and that
receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company;
and
|
●
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the company’s assets that
could have a material effect on the financial
statements.
|
/s/
Jimmy
C. Tallent
|
/s/
Rex
S. Schuette
|
|||
Jimmy
C. Tallent
|
Rex
S. Schuette
|
|||
President
and Chief Executive Officer
|
Executive
Vice President and
Chief Financial Officer |
Certified Public Accountants
|
|||
Suite 1800 Ÿ 235 Peachtree Street NE Ÿ Atlanta, Georgia 30303 Ÿ Phone 404-588-4200 Ÿ Fax 404-588-4222 Ÿ www.pkm.com |
|
|
/s/ Porter Keadle Moore, LLP | |
Atlanta,
Georgia
|
|||
February 25, 2010 |
UNITED
COMMUNITY BANKS, INC. AND SUBSIDIARIES
|
|||||
Consolidated
Statement of Income
|
|||||
For
the Years Ended December 31, 2009, 2008 and 2007
|
|||||
(in
thousands, except per share data)
|
2009
|
2008
|
2007
|
||||||||||
Interest
revenue:
|
||||||||||||
Loans,
including fees
|
$ | 322,509 | $ | 385,959 | $ | 482,333 | ||||||
Investment
securities:
|
||||||||||||
Taxable
|
76,048 | 74,405 | 64,377 | |||||||||
Tax
exempt
|
1,322 | 1,464 | 1,718 | |||||||||
Federal
funds sold, commercial paper and deposits in banks
|
2,950 | 2,880 | 608 | |||||||||
Total
interest revenue
|
402,829 | 464,708 | 549,036 | |||||||||
Interest
expense:
|
||||||||||||
Deposits:
|
||||||||||||
NOW
|
11,023 | 28,626 | 45,142 | |||||||||
Money
market
|
9,545 | 10,643 | 15,396 | |||||||||
Savings
|
483 | 764 | 1,653 | |||||||||
Time
|
120,326 | 158,268 | 167,400 | |||||||||
Total
deposit interest expense
|
141,377 | 198,301 | 229,591 | |||||||||
Federal
funds purchased, repurchase agreements and other short-term
borrowings
|
2,842 | 7,699 | 16,236 | |||||||||
Federal
Home Loan Bank advances
|
4,622 | 13,026 | 22,013 | |||||||||
Long-term
debt
|
10,893 | 9,239 | 8,594 | |||||||||
Total
interest expense
|
159,734 | 228,265 | 276,434 | |||||||||
Net
interest revenue
|
243,095 | 236,443 | 272,602 | |||||||||
Provision
for loan losses
|
310,000 | 184,000 | 55,600 | |||||||||
Net
interest revenue after provision for loan losses
|
(66,905 | ) | 52,443 | 217,002 | ||||||||
Fee
revenue:
|
||||||||||||
Service
charges and fees
|
30,986 | 31,683 | 31,433 | |||||||||
Mortgage
loan and other related fees
|
8,959 | 7,103 | 8,537 | |||||||||
Consulting
fees
|
7,822 | 7,046 | 8,946 | |||||||||
Brokerage
fees
|
2,085 | 3,457 | 4,095 | |||||||||
Securities
gains, net
|
2,756 | 1,315 | 3,182 | |||||||||
Gain
from acquisition
|
11,390 | - | - | |||||||||
Losses
on prepayment of borrowings
|
- | (2,714 | ) | (2,242 | ) | |||||||
Other
|
6,180 | 5,251 | 8,700 | |||||||||
Total
fee revenue
|
70,178 | 53,141 | 62,651 | |||||||||
Total
revenue
|
3,273 | 105,584 | 279,653 | |||||||||
Operating
expenses:
|
||||||||||||
Salaries
and employee benefits
|
108,967 | 110,574 | 115,153 | |||||||||
Communications
and equipment
|
15,038 | 15,490 | 15,483 | |||||||||
Occupancy
|
15,796 | 14,988 | 13,613 | |||||||||
Advertising
and public relations
|
4,220 | 6,117 | 7,524 | |||||||||
Postage,
printing and supplies
|
5,068 | 6,296 | 6,365 | |||||||||
Professional
fees
|
9,925 | 7,509 | 7,218 | |||||||||
Foreclosed
property
|
32,365 | 19,110 | 4,980 | |||||||||
FDIC
assessments and other regulatory charges
|
16,004 | 6,020 | 2,780 | |||||||||
Amortization
of intangibles
|
3,104 | 3,009 | 2,739 | |||||||||
Goodwill
impairment
|
95,000 | - | - | |||||||||
Severance
costs
|
2,898 | - | - | |||||||||
Other
|
13,568 | 17,586 | 14,206 | |||||||||
Total
operating expenses
|
321,953 | 206,699 | 190,061 | |||||||||
(Loss)
income before income taxes
|
(318,680 | ) | (101,115 | ) | 89,592 | |||||||
Income
tax (benefit) expense
|
(90,353 | ) | (37,665 | ) | 31,599 | |||||||
Net
(loss) income
|
(228,327 | ) | (63,450 | ) | 57,993 | |||||||
Preferred
stock dividends
|
10,242 | 724 | 18 | |||||||||
Net
(loss) income available to common shareholders
|
$ | (238,569 | ) | $ | (64,174 | ) | $ | 57,975 | ||||
(Loss)
earnings per common share:
|
||||||||||||
Basic
|
$ | (3.95 | ) | $ | (1.35 | ) | $ | 1.26 | ||||
Diluted
|
(3.95 | ) | (1.35 | ) | 1.24 | |||||||
Cash
dividends per common share
|
- | .18 | .36 | |||||||||
Weighted
average common shares outstanding:
|
||||||||||||
Basic
|
60,374 | 47,369 | 45,948 | |||||||||
Diluted
|
60,374 | 47,369 | 46,593 |
UNITED
COMMUNITY BANKS, INC. AND SUBSIDIARIES
|
|||
Consolidated
Balance Sheet
|
|||
As
of December 31, 2009 and 2008
|
|||
(in
thousands, except share data)
|
Assets
|
||||||||
2009
|
2008
|
|||||||
Cash
and due from banks
|
$ | 126,265 | $ | 116,395 | ||||
Interest-bearing
deposits in banks
|
120,382 | 8,417 | ||||||
Federal
funds sold, commercial paper and short-term investments
|
129,720 | 368,609 | ||||||
Cash
and cash equivalents
|
376,367 | 493,421 | ||||||
Securities
available for sale
|
1,530,047 | 1,617,187 | ||||||
Mortgage
loans held for sale
|
30,226 | 20,334 | ||||||
Loans,
net of unearned income
|
5,151,476 | 5,704,861 | ||||||
Less
allowance for loan losses
|
155,602 | 122,271 | ||||||
Loans,
net
|
4,995,874 | 5,582,590 | ||||||
Assets
covered by loss sharing agreements with the FDIC
|
185,938 | - | ||||||
Premises
and equipment, net
|
182,038 | 179,160 | ||||||
Accrued
interest receivable
|
33,867 | 46,088 | ||||||
Goodwill
and other intangible assets
|
225,196 | 321,798 | ||||||
Other
assets
|
440,361 | 331,355 | ||||||
Total
assets
|
$ | 7,999,914 | $ | 8,591,933 | ||||
Liabilities and Shareholders’
Equity
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Demand
|
$ | 707,826 | $ | 654,036 | ||||
NOW
|
1,335,790 | 1,543,385 | ||||||
Money
market
|
713,901 | 466,750 | ||||||
Savings
|
177,427 | 170,275 | ||||||
Time:
|
||||||||
Less
than $100,000
|
1,746,511 | 1,953,235 | ||||||
Greater
than $100,000
|
1,187,499 | 1,422,974 | ||||||
Brokered
|
758,880 | 792,969 | ||||||
Total
deposits
|
6,627,834 | 7,003,624 | ||||||
Federal
funds purchased, repurchase agreements and other short-term
borrowings
|
101,389 | 108,411 | ||||||
Federal
Home Loan Bank advances
|
114,501 | 235,321 | ||||||
Long-term
debt
|
150,066 | 150,986 | ||||||
Accrued
expenses and other liabilities
|
43,803 | 104,209 | ||||||
Total
liabilities
|
7,037,593 | 7,602,551 | ||||||
Commitments
and contingencies
|
||||||||
Shareholders’
equity:
|
||||||||
Preferred
stock, $1 par value; 10,000,000 shares authorized;
|
||||||||
Series
A, $10 stated value; 21,700 and 25,800 shares issued and
outstanding
|
217 | 258 | ||||||
Series
B, $1,000 stated value; 180,000 shares issued and
outstanding
|
174,408 | 173,180 | ||||||
Common
stock, $1 par value; 100,000,000 shares authorized;
|
||||||||
94,045,603
and 48,809,301 shares issued
|
94,046 | 48,809 | ||||||
Common
stock issuable; 221,906 and 129,304 shares
|
3,597 | 2,908 | ||||||
Capital
surplus
|
622,034 | 460,708 | ||||||
Retained
earnings
|
20,384 | 265,405 | ||||||
Treasury
stock; 799,892 shares, at cost
|
- | (16,465 | ) | |||||
Accumulated
other comprehensive income
|
47,635 | 54,579 | ||||||
Total shareholders’
equity
|
962,321 | 989,382 | ||||||
Total liabilities and
shareholders’ equity
|
$ | 7,999,914 | $ | 8,591,933 | ||||
UNITED
COMMUNITY BANKS, INC. AND SUBSIDIARIES
|
|||||||||||||||||||
Consolidated
Statement of Changes in Shareholders’ Equity
|
|||||||||||||||||||
For
the Years Ended December 31, 2009, 2008 and 2007
|
|||||||||||||||||||
(in
thousands, except share and per share data)
|
Accumulated
|
||||||||||||||||||||||||||||||||||||
Common
|
Other
|
|||||||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
|
Stock
|
Capital
|
Retained
|
Treasury
|
Comprehensive
|
||||||||||||||||||||||||||||||
Series
A
|
Series
B
|
Stock
|
Issuable
|
Surplus
|
Earnings
|
Stock
|
Income
(Loss)
|
Total
|
||||||||||||||||||||||||||||
Balance,
December 31, 2006
|
$ | 322 | $ | - | $ | 42,891 | $ | 862 | $ | 270,383 | $ | 306,261 | $ | - | $ | (3,952 | ) | $ | 616,767 | |||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | 57,993 | - | - | 57,993 | |||||||||||||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Unrealized holding
gains on available for sale securities (net of deferred tax expense of
$6,163)
|
- | - | - | - | - | - | - | 10,267 | 10,267 | |||||||||||||||||||||||||||
Reclassification
adjustment for gains on securities available for sale included in fee
revenue (net of tax expense of $1,237)
|
- | - | - | - | - | - | - | (1,945 | ) | (1,945 | ) | |||||||||||||||||||||||||
Unrealized gains on
derivative financial instruments qualifying as cash flow hedges (net of
deferred tax expense of $6,297)
|
- | - | - | - | - | - | - | 9,891 | 9,891 | |||||||||||||||||||||||||||
Comprehensive
income
|
57,993 | 18,213 | 76,206 | |||||||||||||||||||||||||||||||||
Retirement
of Series A preferred stock (6,400 shares)
|
(64 | ) | - | - | - | - | - | - | - | (64 | ) | |||||||||||||||||||||||||
Cash
dividends declared on common stock ($.36 per share)
|
- | - | - | - | - | (16,845 | ) | - | - | (16,845 | ) | |||||||||||||||||||||||||
Common
stock issued for acquisition (5,691,948 shares)
|
- | - | 5,692 | - | 185,649 | - | - | - | 191,341 | |||||||||||||||||||||||||||
Exercise
of stock options, net of shares exchanged (150,078 shares)
|
- | - | 86 | - | 71 | - | 1,543 | - | 1,700 | |||||||||||||||||||||||||||
Common stock issued
to Dividend Reinvestment Plan and employee benefit plans (134,664
shares)
|
- | - | 110 | - | 3,217 | - | 615 | - | 3,942 | |||||||||||||||||||||||||||
Amortization
of stock options and restricted stock
|
- | - | - | - | 3,580 | - | - | - | 3,580 | |||||||||||||||||||||||||||
Vesting
of restricted stock awards (34,277 shares issued, 3,125 shares deferred)
|
- | - | 30 | 93 | (219 | ) | - | 96 | - | - | ||||||||||||||||||||||||||
Purchases
of treasury stock (2,000,000 shares)
|
- | - | - | - | - | - | (46,056 | ) | - | (46,056 | ) | |||||||||||||||||||||||||
Deferred
compensation plan, net, including dividend equivalents
|
- | - | - | 1,187 | - | - | - | - | 1,187 | |||||||||||||||||||||||||||
Shares
issued from deferred compensation plan (1,550 shares)
|
- | - | - | (42 | ) | 38 | - | 4 | - | - | ||||||||||||||||||||||||||
Tax
benefit from options exercised
|
- | - | - | - | 162 | - | - | - | 162 | |||||||||||||||||||||||||||
Cash
dividends declared on Series A preferred stock ($.60 per
share)
|
- | - | - | - | - | (18 | ) | - | - | (18 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2007
|
258 | - | 48,809 | 2,100 | 462,881 | 347,391 | (43,798 | ) | 14,261 | 831,902 | ||||||||||||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (63,450 | ) | - | - | (63,450 | ) | |||||||||||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Unrealized holding
gains on available for sale securities (net of deferred tax expense of
$5,442)
|
- | - | - | - | - | - | - | 8,912 | 8,912 | |||||||||||||||||||||||||||
Reclassification
adjustment for gains on securities available for sale included in fee
revenue (net of tax expense of $512)
|
- | - | - | - | - | - | - | (803 | ) | (803 | ) | |||||||||||||||||||||||||
Unrealized gains on
derivative financial instruments qualifying as cash flow hedges (net of
deferred tax expense of $22,439)
|
- | - | - | - | - | - | - | 35,244 | 35,244 | |||||||||||||||||||||||||||
Reclassification
adjustment for gains on terminated floor contracts (net of tax expense of
$1,932)
|
- | - | - | - | - | - | - | (3,035 | ) | (3,035 | ) | |||||||||||||||||||||||||
Comprehensive
loss
|
(63,450 | ) | 40,318 | (23,132 | ) | |||||||||||||||||||||||||||||||
Issuance
of Series B preferred stock (180,000 shares)
|
- | 173,097 | - | - | 6,903 | - | - | - | 180,000 | |||||||||||||||||||||||||||
Issuance
of warrants attached to trust preferred securities
|
- | - | - | - | 392 | - | - | - | 392 | |||||||||||||||||||||||||||
Cash
dividends declared on common stock ($.18 per share)
|
- | - | - | - | - | (8,465 | ) | - | - | (8,465 | ) | |||||||||||||||||||||||||
Stock
dividends declared on common stock (723,814 shares)
|
- | - | - | - | (8,663 | ) | (9,347 | ) | 17,934 | - | (76 | ) | ||||||||||||||||||||||||
Exercise
of stock options, net of shares exchanged (80,838 shares)
|
- | - | - | - | (1,257 | ) | - | 2,277 | - | 1,020 | ||||||||||||||||||||||||||
Common
stock issued to Dividend Reinvestment Plan and employee benefit
plans
(281,501 shares)
|
- | - | - | - | (3,259 | ) | - | 6,648 | - | 3,389 | ||||||||||||||||||||||||||
Amortization
of stock options and restricted stock
|
- | - | - | - | 3,859 | - | - | - | 3,859 | |||||||||||||||||||||||||||
Vesting
of restricted stock awards (15,662 shares issued, 8,700 shares deferred)
|
- | - | - | 264 | (639 | ) | - | 375 | - | - | ||||||||||||||||||||||||||
Deferred
compensation plan, net, including dividend equivalents
|
- | - | - | 658 | - | - | - | - | 658 | |||||||||||||||||||||||||||
Shares
issued from deferred compensation plan (4,214 shares)
|
- | - | - | (114 | ) | 15 | - | 99 | - | - | ||||||||||||||||||||||||||
Tax
benefit from options exercised
|
- | - | - | - | 476 | - | - | - | 476 | |||||||||||||||||||||||||||
Cash
dividends on Series A preferred stock ($.60 per share)
|
- | - | - | - | - | (16 | ) | - | - | (16 | ) | |||||||||||||||||||||||||
Cash
dividends on Series B preferred stock (5%)
|
- | 83 | - | - | - | (708 | ) | - | - | (625 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2008
|
258 | 173,180 | 48,809 | 2,908 | 460,708 | 265,405 | (16,465 | ) | 54,579 | 989,382 | ||||||||||||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (228,327 | ) | - | - | (228,327 | ) | |||||||||||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||||||||||||||
Unrealized holding
gains on available for sale securities (net of deferred tax expense of
$9,635)
|
- | - | - | - | - | - | - | 16,277 | 16,277 | |||||||||||||||||||||||||||
Reclassification
adjustment for gains on securities available for sale included in fee
revenue (net of tax expense of $1,072)
|
- | - | - | - | - | - | - | (1,684 | ) | (1,684 | ) | |||||||||||||||||||||||||
Unrealized losses on
derivative financial instruments qualifying as cash flow hedges (net of
deferred tax benefit of $13,712)
|
- | - | - | - | - | - | - | (21,537 | ) | (21,537 | ) | |||||||||||||||||||||||||
Comprehensive
loss
|
(228,327 | ) | (6,944 | ) | (235,271 | ) | ||||||||||||||||||||||||||||||
Retirement
of Series A preferred stock (4,100 shares)
|
(41 | ) | - | - | - | - | - | - | - | (41 | ) | |||||||||||||||||||||||||
Stock
dividends declared on common stock (1,111,522 shares)
|
- | - | 482 | - | (6,731 | ) | (6,452 | ) | 12,649 | - | (52 | ) | ||||||||||||||||||||||||
Exercise
of stock options, net of shares exchanged (437 shares)
|
- | - | - | - | (6 | ) | - | 8 | - | 2 | ||||||||||||||||||||||||||
Common
stock issued to Dividend Reinvestment Plan and employee benefit
plans
(401,101 shares)
|
- | - | 248 | - | (1,528 | ) | - | 3,434 | - | 2,154 | ||||||||||||||||||||||||||
Common
stock issued (44,505,000 shares)
|
- | - | 44,505 | - | 166,584 | - | - | - | 211,089 | |||||||||||||||||||||||||||
Amortization
of stock options and restricted stock
|
- | - | - | - | 3,704 | - | - | - | 3,704 | |||||||||||||||||||||||||||
Vesting
of restricted stock awards (12,447 shares issued, 18,281
shares deferred)
|
- | - | 2 | 446 | (688 | ) | - | 240 | - | - | ||||||||||||||||||||||||||
Deferred
compensation plan, net, including dividend equivalents
|
- | - | - | 398 | - | - | - | - | 398 | |||||||||||||||||||||||||||
Shares
issued from deferred compensation plan (5,687 shares)
|
- | - | - | (155 | ) | 21 | - | 134 | - | - | ||||||||||||||||||||||||||
Tax
on option exercise and restricted stock vesting
|
- | - | - | - | (30 | ) | - | - | - | (30 | ) | |||||||||||||||||||||||||
Cash
dividends on Series A preferred stock ($.60 per share)
|
- | - | - | - | - | (14 | ) | - | - | (14 | ) | |||||||||||||||||||||||||
Cash
dividends on Series B preferred stock (5%)
|
- | 1,228 | - | - | - | (10,228 | ) | - | - | (9,000 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2009
|
$ | 217 | $ | 174,408 | $ | 94,046 | $ | 3,597 | $ | 622,034 | $ | 20,384 | $ | - | $ | 47,635 | $ | 962,321 |
UNITED
COMMUNITY BANKS, INC. AND SUBSIDIARIES
|
Consolidated
Statement of Cash Flows
|
For
the Years Ended December 31, 2009, 2008 and 2007
|
(in
thousands)
|
2009
|
2008
|
2007
|
||||||||||
Operating
activities:
|
||||||||||||
Net
(loss) income
|
$ | (228,327 | ) | $ | (63,450 | ) | $ | 57,993 | ||||
Adjustments
to reconcile net (loss) income to net cash provided
|
||||||||||||
by
operating activities:
|
||||||||||||
Depreciation,
amortization and accretion
|
14,553 | 14,848 | 13,946 | |||||||||
Provision
for loan losses
|
310,000 | 184,000 | 55,600 | |||||||||
Goodwill
impairment charge
|
95,000 | - | - | |||||||||
Stock
based compensation
|
3,704 | 3,859 | 3,580 | |||||||||
Deferred
income tax benefit
|
(50,013 | ) | (13,566 | ) | (14,228 | ) | ||||||
Securities
gains, net
|
(2,756 | ) | (1,315 | ) | (3,182 | ) | ||||||
Losses
(gains) on sale of other assets
|
89 | 14 | (214 | ) | ||||||||
Losses
on prepayment of borrowings
|
- | 2,714 | 2,242 | |||||||||
Losses
and write downs on other real estate owned
|
17,881 | 12,415 | 2,659 | |||||||||
Gain
from acquisition
|
(11,390 | ) | - | - | ||||||||
Change
in assets and liabilities, net of effects
|
||||||||||||
of
business combinations:
|
||||||||||||
Other
assets and accrued interest receivable
|
(15,636 | ) | 202 | 15,270 | ||||||||
Accrued
expenses and other liabilities
|
16,348 | (26,079 | ) | (35,574 | ) | |||||||
Mortgage
loans held for sale
|
(9,892 | ) | 7,670 | 7,321 | ||||||||
Net
cash provided by operating activities
|
139,561 | 121,312 | 105,413 | |||||||||
Investing
activities, net of effects of business combinations:
|
||||||||||||
Proceeds
from sales of securities available for sale
|
328,968 | 162,679 | 128,214 | |||||||||
Proceeds
from maturities and calls of securities available for sale
|
693,064 | 464,672 | 597,215 | |||||||||
Purchases
of securities available for sale
|
(884,815 | ) | (820,665 | ) | (904,158 | ) | ||||||
Net
decrease (increase) in loans
|
62,964 | (47,870 | ) | (113,206 | ) | |||||||
Purchase
of bank owned life insurance
|
- | - | (50,000 | ) | ||||||||
Purchases
of premises and equipment
|
(14,868 | ) | (11,393 | ) | (34,062 | ) | ||||||
Proceeds
from sales of premises and equipment
|
634 | 535 | - | |||||||||
Net
cash received from (paid for) business combinations
|
63,617 | - | (4,346 | ) | ||||||||
Proceeds
from sales of other real estate
|
154,381 | 78,973 | 22,483 | |||||||||
Net
cash provided by (used in) investing activities
|
403,945 | (173,069 | ) | (357,860 | ) | |||||||
Financing
activities, net of effects of business combinations:
|
||||||||||||
Net
change in deposits
|
(682,236 | ) | 927,673 | (264,780 | ) | |||||||
Net
change in federal funds purchased, repurchase agreements
|
||||||||||||
and
other short-term borrowings
|
(9,692 | ) | (488,051 | ) | 567,233 | |||||||
Proceeds
from line of credit
|
- | - | 42,000 | |||||||||
Repayment
of line of credit
|
- | (42,000 | ) | - | ||||||||
Proceeds
from trust preferred securities
|
- | 12,967 | - | |||||||||
Retirement
of trust preferred securities
|
- | - | (5,000 | ) | ||||||||
Proceeds
from FHLB advances
|
330,000 | 400,000 | 1,200,000 | |||||||||
Repayments
of FHLB advances
|
(503,322 | ) | (686,714 | ) | (1,182,142 | ) | ||||||
Proceeds
from issuance of subordinated debt
|
- | 30,000 | - | |||||||||
Proceeds
from issuance of common stock for dividend reinvestment and employee
benefit plans
|
2,154 | 3,389 | 3,942 | |||||||||
Proceeds
from issuance of common stock
|
211,089 | - | - | |||||||||
Proceeds
from exercise of stock options
|
2 | 1,020 | 1,700 | |||||||||
Retirement
of Series A preferred stock
|
(41 | ) | - | (64 | ) | |||||||
Proceeds
from issuance of Series B preferred stock
|
- | 180,000 | - | |||||||||
Purchase
of treasury stock
|
- | - | (46,056 | ) | ||||||||
Cash
dividends on common stock
|
- | (12,713 | ) | (16,029 | ) | |||||||
Cash
dividends on Series A preferred stock
|
(14 | ) | (16 | ) | (18 | ) | ||||||
Cash
dividends on Series B preferred stock
|
(8,500 | ) | - | - | ||||||||
Net
cash (used in) provided by financing activities
|
(660,560 | ) | 325,555 | 300,786 | ||||||||
Net
change in cash and cash equivalents
|
(117,054 | ) | 273,798 | 48,339 | ||||||||
Cash
and cash equivalents at beginning of year
|
493,421 | 219,623 | 171,284 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 376,367 | $ | 493,421 | $ | 219,623 |
(1)
|
Summary
of Significant Accounting Policies
|
(1)
|
Summary
of Significant Accounting Policies,
continued
|
(1)
|
Summary
of Significant Accounting Policies,
continued
|
(1)
|
Summary
of Significant Accounting Policies,
continued
|
(2)
|
Accounting
Standards Updates
|
(2)
|
Accounting
Standards Updates, continued
|
(in
thousands)
|
Southern
Community
Bank
|
|||
Assets
acquired:
|
||||
Cash
and due from banks
|
$ | 63,617 | ||
Securities
available for sale
|
80,149 | |||
Loans
|
110,023 | |||
Foreclosed
property
|
25,913 | |||
Estimated
loss reimbursement from the FDIC
|
94,550 | |||
Covered
assets
|
230,486 | |||
Core
deposit intangible
|
1,500 | |||
Accrued
interest receivable and other assets
|
2,434 | |||
Total
assets acquired
|
378,186 | |||
Liabilities
assumed:
|
||||
Deposits
|
309,437 | |||
Federal
Home Loan Bank advances
|
53,416 | |||
Accrued
interest payable and other liabilities
|
3,943 | |||
Total
liabilities assumed
|
366,796 | |||
Net
assets acquired / gain from acquisition
|
$ | 11,390 | ||
(3)
|
Mergers
and Acquisitions,
continued
|
Assets Covered by Loss Sharing Agreements
with the FDIC |
Purchased
Impaired
Loans
|
Other
Purchased Loans |
Other
|
Total
|
||||||||||||
Construction
|
$ | 8,731 | $ | 15,967 | $ | - | $ | 24,698 | ||||||||
Commercial
(secured by real estate)
|
- | 40,564 | - | 40,564 | ||||||||||||
Residential
mortgage
|
132 | 11,186 | - | 11,318 | ||||||||||||
Commercial
& industrial
|
328 | 7,400 | - | 7,728 | ||||||||||||
Consumer
|
45 | 744 | - | 789 | ||||||||||||
Total
covered loans
|
9,236 | 75,861 | - | 85,097 | ||||||||||||
Covered
foreclosed property
|
- | - | 33,882 | 33,882 | ||||||||||||
Estimated
loss reimbursement from the FDIC
|
- | - | 66,959 | 66,959 | ||||||||||||
Total
covered assets
|
$ | 9,236 | $ | 75,861 | $ | 100,841 | $ | 185,938 |
(3)
|
Mergers
and Acquisitions,
continued
|
2009
|
Beginning
Balance |
Purchase
Adjustments |
Amounts
Charged to Earnings |
Amounts
Paid |
Ending
Balance |
|||||||||||||||
Severance
and related costs
|
$ | 74 | $ | - | $ | - | $ | (74 | ) | $ | - | |||||||||
Total
|
$ | 74 | $ | - | $ | - | $ | (74 | ) | $ | - | |||||||||
2008
|
||||||||||||||||||||
Severance
and related costs
|
$ | 2,481 | $ | - | $ | - | $ | (2,407 | ) | $ | 74 | |||||||||
Professional
fees
|
4 | - | - | (4 | ) | - | ||||||||||||||
Total
|
$ | 2,485 | $ | - | $ | - | $ | (2,411 | ) | $ | 74 | |||||||||
2007
|
||||||||||||||||||||
Severance
and related costs
|
$ | 577 | $ | 2,348 | $ | 71 | $ | (515 | ) | $ | 2,481 | |||||||||
Professional
fees
|
47 | 705 | - | (748 | ) | 4 | ||||||||||||||
Contract
termination costs
|
804 | (785 | ) | - | (19 | ) | - | |||||||||||||
Total
|
$ | 1,428 | $ | 2,268 | $ | 71 | $ | (1,282 | ) | $ | 2,485 | |||||||||
(4)
|
Cash
Flows
|
(5)
|
Securities
Available for Sale
|
Gross
|
Gross
|
||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||
As of December 31, 2009
|
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S.
Government agencies
|
$ | 248,425 | $ | 214 | $ | 2,173 | $ | 246,466 | |||||||||
State
and political subdivisions
|
62,046 | 1,371 | 124 | 63,293 | |||||||||||||
Mortgage-backed
securities
(1)
|
1,156,035 | 43,007 | 1,820 | 1,197,222 | |||||||||||||
Other
|
22,701 | 382 | 17 | 23,066 | |||||||||||||
Total
|
$ | 1,489,207 | $ | 44,974 | $ | 4,134 | $ | 1,530,047 | |||||||||
As of December 31, 2008
|
|
||||||||||||||||
U.S.
Government agencies
|
$ | 166,263 | $ | 2,122 | $ | - | $ | 168,385 | |||||||||
State
and political subdivisions
|
43,649 | 469 | 378 | 43,740 | |||||||||||||
Mortgage-backed
securities
|
1,363,513 | 26,356 | 10,713 | 1,379,156 | |||||||||||||
Other
|
26,080 | 79 | 253 | 25,906 | |||||||||||||
Total
|
$ | 1,599,505 | $ | 29,026 | $ | 11,344 | $ | 1,617,187 | |||||||||
(1)
All are residential type mortgage-backed securities
|
Less
than 12 Months
|
12
Months or More
|
Total
|
|||||||||||||||||||||||
As of December 31, 2009
|
Fair
Value
|
Unrealized
Loss |
Fair
Value
|
Unrealized
Loss |
Fair
Value
|
Unrealized
Loss |
|||||||||||||||||||
U.S.
Government agencies
|
$ | 151,838 | $ | 2,173 | $ | - | $ | - | $ | 151,838 | $ | 2,173 | |||||||||||||
State
and political subdivisions
|
2,348 | 47 | 2,792 | 77 | 5,140 | 124 | |||||||||||||||||||
Mortgage-backed
securities
|
84,024 | 838 | 22,358 | 982 | 106,382 | 1,820 | |||||||||||||||||||
Other
|
- | - | 493 | 17 | 493 | 17 | |||||||||||||||||||
Total
unrealized loss position
|
$ | 238,210 | $ | 3,058 | $ | 25,643 | $ | 1,076 | $ | 263,853 | $ | 4,134 | |||||||||||||
As of December 31, 2008
|
|
||||||||||||||||||||||||
State
and political subdivisions
|
$ | 9,672 | $ | 369 | $ | 14 | $ | 9 | $ | 9,686 | $ | 378 | |||||||||||||
Mortgage-backed
securities
|
215,396 | 10,210 | 11,719 | 503 | 227,115 | 10,713 | |||||||||||||||||||
Other
|
5,228 | 253 | - | - | 5,228 | 253 | |||||||||||||||||||
Total
unrealized loss position
|
$ | 230,296 | $ | 10,832 | $ | 11,733 | $ | 512 | $ | 242,029 | $ | 11,344 |
(5)
|
Securities
Available for Sale, continued
|
Amortized
Cost
|
Fair
Value
|
|||||||
U.S.
Government agencies:
|
||||||||
Within
1 year
|
$ | - | $ | - | ||||
1
to 5 years
|
41,991 | 42,092 | ||||||
5
to 10 years
|
181,533 | 180,492 | ||||||
More
than 10 years
|
24,901 | 23,882 | ||||||
248,425 | 246,466 | |||||||
State
and political subdivisions:
|
||||||||
Within
1 year
|
18,526 | 18,710 | ||||||
1
to 5 years
|
13,765 | 14,120 | ||||||
5
to 10 years
|
20,716 | 21,233 | ||||||
More
than 10 years
|
9,039 | 9,230 | ||||||
62,046 | 63,293 | |||||||
Other:
|
||||||||
Within
1 year
|
10,868 | 10,974 | ||||||
1
to 5 years
|
7,568 | 7,827 | ||||||
5
to 10 years
|
1,000 | 1,000 | ||||||
More
than 10 years
|
3,265 | 3,265 | ||||||
22,701 | 23,066 | |||||||
Total
securities other than mortgage-backed securities:
|
||||||||
Within
1 year
|
29,394 | 29,684 | ||||||
1
to 5 years
|
63,324 | 64,039 | ||||||
5
to 10 years
|
203,249 | 202,725 | ||||||
More
than 10 years
|
37,205 | 36,377 | ||||||
Mortgage-backed
securities
|
1,156,035 | 1,197,222 | ||||||
$ | 1,489,207 | $ | 1,530,047 |
2009
|
2008
|
2007
|
||||||||||
Proceeds
from sales
|
$ | 328,968 | $ | 162,679 | $ | 128,214 | ||||||
Gross
gains on sales
|
$ | 5,291 | $ | 1,419 | $ | 3,511 | ||||||
Gross
losses on sales
|
1,291 | 104 | 329 | |||||||||
Impairment
losses
|
1,244 | - | - | |||||||||
Net
gains on sales of securities
|
$ | 2,756 | $ | 1,315 | $ | 3,182 | ||||||
Income
tax expense attributable to sales
|
$ | 1,072 | $ | 512 | $ | 1,237 | ||||||
(6)
|
Loans
and Allowance for Loan Losses
|
2009
|
2008
|
|||||||
Commercial
(secured by real estate)
|
$ | 1,779,398 | $ | 1,626,966 | ||||
Commercial
(commercial and industrial)
|
390,520 | 410,529 | ||||||
Commercial
construction
|
362,566 | 499,663 | ||||||
Total
commercial
|
2,532,484 | 2,537,158 | ||||||
Residential
construction
|
1,050,065 | 1,478,679 | ||||||
Residential
mortgage
|
1,427,198 | 1,526,388 | ||||||
Installment
|
141,729 | 162,636 | ||||||
Total
loans
|
5,151,476 | 5,704,861 | ||||||
Less
allowance for loan losses
|
155,602 | 122,271 | ||||||
Loans,
net
|
$ | 4,995,874 | $ | 5,582,590 |
Balances
at December 31, 2008
|
$ | 48,223 | ||
New
loans and advances
|
13,538 | |||
Repayments
|
(6,749 | ) | ||
Renewals
|
(2,641 | ) | ||
Adjustment
for changes in executive officers and directors
|
(31,539 | ) | ||
Balances
at December 31, 2009
|
$ | 20,832 |
(6)
|
Loans
and Allowance for Loan Losses,
continued
|
2009
|
2008
|
2007
|
||||||||||
Balance
beginning of period
|
$ | 122,271 | $ | 89,423 | $ | 66,566 | ||||||
Provision
for loan losses
|
310,000 | 184,000 | 55,600 | |||||||||
Allowance
for loan losses acquired from
|
||||||||||||
subsidiaries
at merger date
|
- | - | 7,091 | |||||||||
Charge-offs:
|
||||||||||||
Commercial
(commercial and industrial)
|
11,322 | 5,197 | 1,188 | |||||||||
Commercial
(secured by real estate)
|
21,796 | 5,843 | 688 | |||||||||
Commercial
construction
|
9,908 | 1,796 | 245 | |||||||||
Residential
construction
|
219,168 | 123,771 | 30,351 | |||||||||
Residential
mortgage
|
18,997 | 12,995 | 7,022 | |||||||||
Installment
|
5,115 | 3,275 | 2,200 | |||||||||
Total
loans charged-off
|
286,306 | 152,877 | 41,694 | |||||||||
Recoveries:
|
||||||||||||
Commercial
(commercial and industrial)
|
5,397 | 61 | 187 | |||||||||
Commercial
(secured by real estate)
|
520 | 72 | 97 | |||||||||
Commercial
construction
|
12 | 4 | 1 | |||||||||
Residential
construction
|
2,253 | 653 | 117 | |||||||||
Residential
mortgage
|
411 | 224 | 486 | |||||||||
Installment
|
1,044 | 711 | 972 | |||||||||
Total
recoveries
|
9,637 | 1,725 | 1,860 | |||||||||
Net
charge-offs
|
276,669 | 151,152 | 39,834 | |||||||||
Balance
end of period
|
$ | 155,602 | $ | 122,271 | $ | 89,423 |
(7)
|
Premises
and Equipment
|
2009
|
2008
|
|||||||
Land
and land improvements
|
$ | 80,377 | $ | 78,874 | ||||
Buildings
and improvements
|
110,062 | 100,162 | ||||||
Furniture
and equipment
|
74,002 | 70,930 | ||||||
Construction
in progress
|
540 | 1,974 | ||||||
264,981 | 251,940 | |||||||
Less
accumulated depreciation
|
82,943 | 72,780 | ||||||
Premises
and equipment, net
|
$ | 182,038 | $ | 179,160 |
(8)
|
Goodwill
and Other Intangible Assets
|
2009
|
2008
|
|||||||
Beginning
balance
|
$ | 305,590 | $ | 306,086 | ||||
Impairment
charges
|
(95,000 | ) | - | |||||
Purchase
adjustments
|
- | (496 | ) | |||||
Ending
balance
|
$ | 210,590 | $ | 305,590 |
(8)
|
Goodwill
and Other Intangible Assets,
continued
|
2009
|
2008
|
|||||||
Gross
carrying amount
|
$ | 32,652 | $ | 31,152 | ||||
Less
accumulated amortization
|
18,046 | 14,944 | ||||||
Net
carrying amount
|
$ | 14,606 | $ | 16,208 |
2010
|
$ | 3,160 | ||
2011
|
3,018 | |||
2012
|
2,918 | |||
2013
|
2,030 | |||
2014
|
1,349 |
(9)
|
Deposits
|
Maturing In:
|
||||
2010
|
$ | 3,100,865 | ||
2011
|
396,271 | |||
2012
|
154,447 | |||
2013
|
17,867 | |||
2014
|
16,962 | |||
thereafter
|
6,478 | |||
$ | 3,692,890 |
(10)
|
Federal
Home Loan Bank Advances
|
Amount
|
||||||||||||
Maturing In:
|
Maturing
|
Current Rate Range
|
||||||||||
2010
|
$ | 10,079 | 3.14 | % | - | 3.14% | ||||||
2011
|
- | |||||||||||
2012
|
74,297 | 4.05 | % | - | 4.49% | |||||||
2013
|
- | |||||||||||
2014
|
30,000 | 2.85 | % | - | 4.49% | |||||||
thereafter
|
125 | |||||||||||
$ | 114,501 |
(11)
|
Short-term
Borrowings
|
2009
|
2008
|
|||||||
Federal
funds purchased
|
$ | - | $ | 8,197 | ||||
Repurchase
agreements
|
101,389 | 100,214 | ||||||
Total
short-term borrowings
|
$ | 101,389 | $ | 108,411 |
(12)
|
Long-term
Debt
|
2009
|
2008
|
Issue
Date |
Stated
Maturity Date |
Earliest
Call Date |
Interest
Rate
|
||||||||||||||||
2002
subordinated debentures
|
$ | 30,500 | $ | 31,500 | 2002 | 2012 | 2012 | 6.750 | % | ||||||||||||
2003
subordinated debentures
|
35,000 | 35,000 | 2003 | 2015 | 2010 | 6.250 | |||||||||||||||
2008
subordinated debentures
|
30,000 | 30,000 | 2008 | 2015 | 2008 |
LIBOR
+ 4.00
|
|||||||||||||||
Total
subordinated debentures
|
95,500 | 96,500 | |||||||||||||||||||
United
Community Capital Trust
|
21,650 | 21,650 | 1998 | 2028 | 2008 | 8.125 | |||||||||||||||
United
Community Statutory Trust I
|
5,155 | 5,155 | 2000 | 2030 | 2010 | 10.600 | |||||||||||||||
United
Community Capital Trust II
|
10,309 | 10,309 | 2000 | 2030 | 2010 | 11.295 | |||||||||||||||
Southern
Bancorp Capital Trust I
|
4,382 | 4,382 | 2004 | 2034 | 2009 |
Prime
+ 1.00
|
|||||||||||||||
United
Community Statutory Trust II
|
11,859 | 11,787 | 2008 | 2038 | 2013 | 9.000 | |||||||||||||||
United
Community Statutory Trust III
|
1,211 | 1,203 | 2008 | 2038 | 2013 |
Prime
+ 3.00
|
|||||||||||||||
Total
trust preferred securities
|
54,566 | 54,486 | |||||||||||||||||||
Total
long-term debt
|
$ | 150,066 | $ | 150,986 |
(13)
|
Earnings
Per Share
|
(13)
|
Earnings
Per Share, continued
|
2009
|
2008
|
2007
|
||||||||||
Net
(loss) income available to common stockholders
|
$ | (238,569 | ) | $ | (64,174 | ) | $ | 57,975 | ||||
(Loss)
earnings per common share:
|
||||||||||||
Basic
|
$ | (3.95 | ) | $ | (1.35 | ) | $ | 1.26 | ||||
Diluted
|
(3.95 | ) | (1.35 | ) | 1.24 | |||||||
Weighted
average common shares:
|
||||||||||||
Basic
|
60,374 | 47,369 | 45,948 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Stock
options
|
- | - | 645 | |||||||||
Warrants
|
- | - | - | |||||||||
Diluted
|
60,374 | 47,369 | 46,593 |
(14)
|
Income
Taxes
|
2009
|
2008
|
2007
|
||||||||||
Current
|
$ | (40,340 | ) | $ | (24,099 | ) | $ | 45,827 | ||||
Deferred
|
(53,885 | ) | (13,566 | ) | (14,228 | ) | ||||||
Change
in valuation allowance
|
3,872 | - | - | |||||||||
Total
income tax (benefit) expense
|
$ | (90,353 | ) | $ | (37,665 | ) | $ | 31,599 |
2009
|
2008
|
2007
|
||||||||||
Pretax
(loss) earnings at statutory rates
|
$ | (111,538 | ) | $ | (35,390 | ) | $ | 31,357 | ||||
Add
(deduct):
|
||||||||||||
State
taxes, net of federal benefit
|
(9,382 | ) | (6,779 | ) | 696 | |||||||
Nondeductible
goodwill impairment charges
|
32,282 | - | - | |||||||||
Bank
owned life insurance earnings
|
(3,308 | ) | 1,672 | (1,001 | ) | |||||||
Adjustment
to reserve for uncertain tax positions
|
(852 | ) | 3,875 | 1,684 | ||||||||
Tax-exempt
interest revenue
|
(1,120 | ) | (1,195 | ) | (986 | ) | ||||||
Nondeductible
interest expense
|
96 | 149 | 159 | |||||||||
Tax
credits
|
(501 | ) | (506 | ) | (482 | ) | ||||||
Incentive
stock option expense
|
52 | 192 | 315 | |||||||||
Change
in valuation allowance
|
3,872 | - | - | |||||||||
Other
|
46 | 317 | (143 | ) | ||||||||
Total
income tax (benefit) expense
|
$ | (90,353 | ) | $ | (37,665 | ) | $ | 31,599 |
(14)
|
Income
Taxes, continued
|
2009
|
2008
|
|||||||
Deferred
tax assets:
|
||||||||
Allowances
for loan losses
|
$ | 60,656 | $ | 47,421 | ||||
Net
operating loss carryforwards
|
47,741 | 5,659 | ||||||
Deferred
compensation
|
6,278 | 5,059 | ||||||
Reserve
for losses on foreclosed properties
|
2,891 | 2,521 | ||||||
Nonqualified
share based compensation
|
3,442 | 2,348 | ||||||
Accrued
expenses
|
1,019 | 413 | ||||||
Investment
in low income housing tax credit partnerships
|
1,083 | 943 | ||||||
Other
|
330 | 43 | ||||||
Total
deferred tax assets
|
123,440 | 64,407 | ||||||
Deferred
tax liabilities:
|
||||||||
Unrealized
gains on cash flow hedges
|
14,050 | 27,761 | ||||||
Unrealized
gains on securities available for sale
|
15,272 | 6,708 | ||||||
Premises
and equipment
|
5,369 | 6,332 | ||||||
Acquired
intangible assets
|
4,930 | 5,976 | ||||||
Loan
origination costs
|
3,112 | 2,578 | ||||||
Gain
from acquisition of Southern Community Bank
|
6,286 | - | ||||||
Prepaid
expenses
|
1,311 | 974 | ||||||
Total
deferred tax liabilities
|
50,330 | 50,329 | ||||||
Less
valuation allowance
|
3,872 | - | ||||||
Net
deferred tax asset
|
$ | 69,238 | $ | 14,078 |
(14)
|
Income
Taxes, continued
|
2009
|
2008
|
2007
|
||||||||||
Balance
at beginning of year
|
$ | 9,336 | $ | 4,729 | $ | 2,361 | ||||||
Additions
based on tax positions related to prior years
|
1,965 | 2,331 | 1,089 | |||||||||
Decreases
based on tax positions related to prior years
|
(216 | ) | (154 | ) | (84 | ) | ||||||
Additions
based on tax positions related to the current year
|
- | 2,430 | 1,363 | |||||||||
Decreases
based on settlements with taxing authorities
|
(2,833 | ) | - | - | ||||||||
Balance
at end of year
|
$ | 8,252 | $ | 9,336 | $ | 4,729 |
(15)
|
Employee
Benefit Plans
|
(15)
|
Employee
Benefit Plans, continued
|
(16)
|
Derivatives
and Hedging Activities
|
Fair
Value
|
|||||||||
Interest
Rate
|
December
31,
|
December
31,
|
|||||||
Products
|
Balance
Sheet Location
|
2009
|
2008
|
||||||
Asset
derivatives
|
Other
assets
|
$ | 10,692 | $ | 81,612 | ||||
(16)
|
Derivatives
and Hedging Activities, continued
|
Location
of Gain (Loss)
|
Amount
of Gain (Loss) Recognized
|
Amount
of Gain (Loss) Recognized
|
||||||||||||||
Recognized
in Income
|
in
Income on Derivative
|
in
Income on Hedged Item
|
||||||||||||||
on
Derivative
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Other
fee revenue
|
$ | (259 | ) | $ | - | $ | 431 | $ | - | |||||||
Other
expense
|
(3,177 | ) | 6,313 | 2,612 | (6,173 | ) |
Amount
of Gain (Loss)
|
Location
of Gain (Loss)
|
Amount
of Gain (Loss)
|
|||||||||||||||
Recognized
in Other
|
Reclassified
from
|
Reclassified
from Accumulated
|
|||||||||||||||
Comprehensive
Income
|
Accumulated
Other
|
Other
Comprehensive Income
|
|||||||||||||||
on
Derivative
|
Comprehensive
Income
|
into
Income
|
|||||||||||||||
(Effective
Portion)
|
into
Income
|
(Effective
Portion)
|
|||||||||||||||
2009
|
2008
|
(Effective
Portion)
|
2009
|
2008
|
|||||||||||||
Interest
rate products
|
$ | (1,453 | ) | $ | 83,057 |
Interest
revenue
|
$ | 36,793 | $ | 27,347 | |||||||
Other
expense
|
(3 | ) | - | ||||||||||||||
Total
|
$ | (1,453 | ) | $ | 83,057 | $ | 36,790 | $ | 27,347 |
(16)
|
Derivatives
and Hedging Activities, continued
|
(17)
|
Regulatory
Matters
|
(17)
|
Regulatory
Matters, continued
|
Regulatory
|
United
|
United
|
||||||||||||||||||||||
Guidelines
|
(consolidated)
|
(bank)
|
||||||||||||||||||||||
Well
|
||||||||||||||||||||||||
Minimum
|
Capitalized
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Risk-based
ratios:
|
||||||||||||||||||||||||
Tier
I capital
|
4.0 | % | 6.0 | % | 12.4 | % | 11.2 | % | 13.2 | % | 11.4 | % | ||||||||||||
Total
capital
|
8.0 | 10.0 | 15.1 | 13.9 | 15.0 | 13.2 | ||||||||||||||||||
Leverage
ratio
|
3.0 | 8.5 | 8.3 | 8.8 | 8.4 | |||||||||||||||||||
Tier
I capital
|
$ | 679,552 | $ | 671,667 | $ | 720,075 | $ | 690,905 | ||||||||||||||||
Total
capital
|
826,251 | 831,046 | 819,415 | 797,079 |
(18)
|
Commitments
and Contingencies
|
(18)
|
Commitments
and Contingencies, continued
|
2009
|
2008
|
|||||||
Financial
instruments whose contract amounts represent credit risk:
|
||||||||
Commitments
to extend credit
|
$ | 569,408 | $ | 733,278 | ||||
Commercial
letters of credit
|
22,624 | 25,132 |
(19)
|
Preferred
Stock
|
(20)
|
Shareholders’
Equity
|
Restricted
Stock
|
Options
|
|||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
Aggregate
|
|||||||||||||||||||||
Grant
Date
|
Exercise
|
Remaining
|
Intrinsic
|
|||||||||||||||||||||
Shares
|
Fair Value
|
Shares
|
Price
|
Term (Yrs.)
|
Value (000’s)
|
|||||||||||||||||||
December
31, 2006
|
78,440 | $ | 25.85 | 2,549,823 | $ | 19.05 | ||||||||||||||||||
Granted
|
48,400 | 30.96 | 605,700 | 30.56 | ||||||||||||||||||||
Exercised
|
(37,402 | ) | 24.34 | (150,078 | ) | 11.33 | ||||||||||||||||||
Cancelled
|
(5,025 | ) | 29.07 | (92,888 | ) | 27.41 | ||||||||||||||||||
December
31, 2007
|
84,413 | 29.26 | 2,912,557 | 21.57 | ||||||||||||||||||||
Stock
dividend
|
1,354 | - | 51,582 | - | ||||||||||||||||||||
Granted
|
31,097 | 14.19 | 597,750 | 13.76 | ||||||||||||||||||||
Exercised
|
(24,366 | ) | 26.99 | (87,941 | ) | 13.41 | ||||||||||||||||||
Cancelled
|
(3,000 | ) | 30.10 | (123,247 | ) | 23.65 | ||||||||||||||||||
December
31, 2008
|
89,498 | 24.17 | 3,350,701 | 19.99 | ||||||||||||||||||||
Stock
dividend
|
3,179 | - | 79,489 | - | ||||||||||||||||||||
Granted
|
106,000 | 7.07 | 354,450 | 6.35 | ||||||||||||||||||||
Exercised
|
(30,728 | ) | 24.32 | (437 | ) | 5.96 | ||||||||||||||||||
Cancelled
|
(390 | ) | 30.38 | (120,750 | ) | 18.13 | ||||||||||||||||||
December
31, 2009
|
167,559 | 12.86 | 3,663,453 | 18.30 | 5.60 | $ | - | |||||||||||||||||
Exerciseable
at December 31, 2009
|
2,463,595 | 19.18 | 4.31 | - |
(20)
|
Shareholders’
Equity, continued
|
Options
Outstanding
|
Options
Exercisable
|
||||||||||||||||||
Weighted
|
Average
|
Weighted
|
|||||||||||||||||
Shares
|
Range
|
Average Price
|
Remaining Life
|
Shares
|
Average Price
|
||||||||||||||
399,769
|
$ | 5.00 - 7.50 | $ | 6.38 | 8.43 | 46,035 | $ | 7.08 | |||||||||||
665,947
|
7.51 - 12.50 | 11.90 | 1.70 | 655,032 | 11.92 | ||||||||||||||
573,636
|
12.51 - 15.00 | 13.31 | 8.28 | 148,331 | 13.35 | ||||||||||||||
387,068
|
15.01 - 17.50 | 15.81 | 3.46 | 377,339 | 15.82 | ||||||||||||||
404,469
|
17.51 - 22.50 | 21.52 | 5.18 | 403,689 | 21.52 | ||||||||||||||
241,227
|
22.51 - 25.00 | 23.12 | 4.43 | 238,888 | 23.12 | ||||||||||||||
957,438
|
25.01 - 30.00 | 28.70 | 6.83 | 573,371 | 28.46 | ||||||||||||||
33,899
|
30.01 - 33.50 | 30.49 | 6.61 | 20,910 | 30.55 | ||||||||||||||
3,663,453
|
5.00 - 33.50 | 18.30 | 5.60 | 2,463,595 | 19.18 | ||||||||||||||
2009
|
2008
|
2007
|
||||||||||
Expected
volatility
|
41 | % | 23 | % | 20 | % | ||||||
Expected
dividend yield
|
0.0 | % | 2.6 | % | 1.2 | % | ||||||
Expected
life (in years)
|
6.25 | 6.25 | 6.27 | |||||||||
Risk
free rate
|
3.3 | % | 3.4 | % | 4.6 | % | ||||||
(20)
|
Shareholders’
Equity, continued
|
2009
|
2008
|
|||||||
Unrealized
gains on securities available for sale, net of tax
|
$ | 25,567 | $ | 10,974 | ||||
Unrealized
gains on derivative financial instruments
|
||||||||
qualifying
as cash flow hedges, net of tax
|
22,068 | 43,605 | ||||||
Accumulated
other comprehensive income
|
$ | 47,635 | $ | 54,579 | ||||
(21)
|
Fair
Value
|
(21)
|
(21)
Fair Value, continued
|
(21)
|
Fair Value,
continued
|
December 31,
2009
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Securities
available for sale
|
$ | - | $ | 1,491,155 | $ | 38,892 | $ | 1,530,047 | ||||||||
Deferred
compensation plan assets
|
4,818 | - | - | 4,818 | ||||||||||||
Derivative
financial instruments
|
- | 10,692 | - | 10,692 | ||||||||||||
Total
assets
|
$ | 4,818 | $ | 1,501,847 | $ | 38,892 | $ | 1,545,557 | ||||||||
Liabilities:
|
||||||||||||||||
Deferred
compensation plan liability
|
$ | 4,818 | $ | - | $ | - | $ | 4,818 | ||||||||
Total
liabilities
|
$ | 4,818 | $ | - | $ | - | $ | 4,818 | ||||||||
December 31,
2008
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Securities
available for sale
|
$ | - | $ | 1,606,590 | $ | 10,597 | $ | 1,617,187 | ||||||||
Deferred
compensation plan assets
|
3,646 | - | - | 3,646 | ||||||||||||
Derivative
financial instruments
|
- | 81,611 | - | 81,611 | ||||||||||||
Total
assets
|
$ | 3,646 | $ | 1,688,201 | $ | 10,597 | $ | 1,702,444 | ||||||||
Liabilities:
|
||||||||||||||||
Deferred
compensation plan liability
|
$ | 3,646 | $ | - | $ | - | $ | 3,646 | ||||||||
Total
liabilities
|
$ | 3,646 | $ | - | $ | - | $ | 3,646 |
Securities
|
||||
Available for Sale
|
||||
Balance
at January 1, 2009
|
$ | 10,597 | ||
Amounts
included in earnings
|
(37 | ) | ||
Purchases,
sales, issuances, settlements, maturities, paydowns, net
|
28,332 | |||
Balance
at December 31, 2009
|
$ | 38,892 |
(21)
|
Fair Value,
continued
|
December 31,
2009
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Loans
|
$ | - | $ | - | $ | 153,038 | $ | 153,038 | ||||||||
Foreclosed
properties
|
- | - | 81,213 | 81,213 | ||||||||||||
Total
assets
|
$ | - | $ | - | $ | 234,251 | $ | 234,251 | ||||||||
December 31,
2008
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Loans
|
$ | - | $ | - | $ | 77,562 | $ | 77,562 | ||||||||
Foreclosed
properties
|
- | - | 51,876 | 51,876 | ||||||||||||
Total
assets
|
$ | - | $ | - | $ | 129,438 | $ | 129,438 |
(21)
|
Fair Value,
continued
|
2009
|
2008
|
|||||||||||||||
Carrying
|
Carrying
|
|||||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
Assets:
|
||||||||||||||||
Loans,
net
|
$ | 4,995,874 | $ | 4,529,755 | $ | 5,582,590 | $ | 5,576,842 | ||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
6,627,834 | 6,660,196 | 7,003,624 | 7,093,306 | ||||||||||||
Federal
Home Loan Bank advances
|
114,501 | 119,945 | 235,321 | 242,240 | ||||||||||||
Long-term
debt
|
150,066 | 111,561 | 150,986 | 90,838 |
(22)
|
Condensed
Financial Statements of United Community Banks, Inc. (Parent
Only)
|
2009
|
2008
|
2007
|
||||||||||
Dividends
from subsidiaries
|
$ | - | $ | 70,000 | $ | 42,500 | ||||||
Other
|
7,760 | 9,824 | 12,254 | |||||||||
Total
income
|
7,760 | 79,824 | 54,754 | |||||||||
Interest
expense
|
9,229 | 8,595 | 9,332 | |||||||||
Other
expense
|
9,109 | 7,920 | 10,147 | |||||||||
Total
expenses
|
18,338 | 16,515 | 19,479 | |||||||||
Income
tax benefit
|
3,950 | 2,384 | 2,553 | |||||||||
Income
before equity in undistributed (loss) income of
subsidiaries
|
(6,628 | ) | 65,693 | 37,828 | ||||||||
Equity
in undistributed (loss) income of subsidiaries
|
(221,699 | ) | (129,143 | ) | 20,165 | |||||||
Net
(loss) income
|
$ | (228,327 | ) | $ | (63,450 | ) | $ | 57,993 | ||||
Balance
Sheet
|
||||||||||||
As
of December 31, 2009 and 2008
|
||||||||||||
(in
thousands)
|
||||||||||||
Assets
|
||||||||||||
2009 | 2008 | |||||||||||
Cash
|
$ | 23,828 | $ | 36,737 | ||||||||
Investment
in subsidiaries
|
1,047,896 | 1,065,639 | ||||||||||
Other
assets
|
73,934 | 67,695 | ||||||||||
Total
assets
|
$ | 1,145,658 | $ | 1,170,071 | ||||||||
Liabilities and
Shareholders’
Equity
|
||||||||||||
Subordinated
debentures
|
$ | 120,066 | $ | 120,986 | ||||||||
Other
liabilities
|
63,271 | 59,703 | ||||||||||
Total
liabilities
|
183,337 | 180,689 | ||||||||||
Shareholders’
equity
|
962,321 | 989,382 | ||||||||||
Total
liabilities and shareholders’
equity
|
$ | 1,145,658 | $ | 1,170,071 |
(22)
|
Condensed
Financial Statements of United Community Banks, Inc. (Parent Only),
continued
|
Statement
of Cash Flows
|
||||||||||||
For
the Years Ended December 31, 2009, 2008 and 2007
|
||||||||||||
(in
thousands)
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Operating
activities:
|
||||||||||||
Net
(loss) income
|
$ | (228,327 | ) | $ | (63,450 | ) | $ | 57,993 | ||||
Adjustments
to reconcile net (loss) income to net cash (used in)
|
||||||||||||
provided
by operating activities:
|
||||||||||||
Equity
in undistributed loss (income) of the subsidiaries
|
221,699 | 129,143 | (20,165 | ) | ||||||||
Depreciation,
amortization and accretion
|
333 | 596 | 565 | |||||||||
Impairment
loss on securities
|
555 | - | - | |||||||||
Employee
stock compensation
|
3,704 | 3,859 | 3,580 | |||||||||
Change
in assets and liabilities, net of effects
|
||||||||||||
of
business combinations:
|
||||||||||||
Other
assets
|
(5,395 | ) | (40,813 | ) | (15,434 | ) | ||||||
Other
liabilities
|
2,170 | 43,341 | 15,457 | |||||||||
Net
cash (used in) provided by operating activities
|
(5,261 | ) | 72,676 | 41,996 | ||||||||
Investing
activities, net of effects of purchase acquisitions:
|
||||||||||||
Purchases
of premises and equipment
|
- | - | (76 | ) | ||||||||
Disposal
of premises and equipment
|
- | 34 | - | |||||||||
Investment
in subsidiaries
|
(210,900 | ) | (253,000 | ) | (6,000 | ) | ||||||
Repayment
of subordinated notes by subsidiary
|
- | 73,000 | - | |||||||||
Net
cash paid for acquisitions
|
- | - | (22,287 | ) | ||||||||
Purchases
of securities available for sale
|
(438 | ) | (250 | ) | (125 | ) | ||||||
Net
cash used in investing activities
|
(211,338 | ) | (180,216 | ) | (28,488 | ) | ||||||
Financing
activities, net of effects of business combinations:
|
||||||||||||
Net
change in short-term borrowings
|
- | (42,000 | ) | 42,000 | ||||||||
Proceeds
from issuance of trust preferred securities
|
- | 12,967 | - | |||||||||
Retirement
of trust preferred securities
|
- | - | (5,000 | ) | ||||||||
Repayment
of subordinated notes
|
(1,000 | ) | - | - | ||||||||
Proceeds
from exercise of stock options
|
2 | 1,020 | 1,700 | |||||||||
Proceeds
from issuance of common stock for dividend reinvestment
|
||||||||||||
and
employee benefit plans
|
2,154 | 3,389 | 3,942 | |||||||||
Proceeds
from issuance of common stock
|
211,089 | - | - | |||||||||
Proceeds
from issuance of Series B preferred stock
|
- | 180,000 | - | |||||||||
Retirement
of Series A preferred stock
|
(41 | ) | - | (64 | ) | |||||||
Purchases
of treasury stock
|
- | - | (46,056 | ) | ||||||||
Cash
dividends on common stock
|
- | (12,713 | ) | (16,029 | ) | |||||||
Cash
dividends on Series A preferred stock
|
(14 | ) | (16 | ) | (18 | ) | ||||||
Cash
dividends on Series B preferred stock
|
(8,500 | ) | - | - | ||||||||
Net
cash provided by (used in) financing activities
|
203,690 | 142,647 | (19,525 | ) | ||||||||
Net
change in cash
|
(12,909 | ) | 35,107 | (6,017 | ) | |||||||
Cash
at beginning of year
|
36,737 | 1,630 | 7,647 | |||||||||
Cash
at end of year
|
$ | 23,828 | $ | 36,737 | $ | 1,630 |
(23)
|
Subsequent
Events
|
ITEM
9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
|
ITEM
12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS.
|
Exhibit No.
|
Exhibit
|
|
|||
3.1
|
Restated
Articles of Incorporation of United Community Banks, Inc., (incorporated
herein by reference to Exhibit 3.1 to United Community Banks, Inc.’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2001, File
No. 0-21656, filed with the Commission on August 14,
2001).
|
||||
3.2
|
Amendment
to the Restated Articles of Incorporation of United Community Banks, Inc.
(incorporated herein by reference to Exhibit 3.3 to United Community
Banks, Inc.’s Registration Statement on Form S-4, File
No. 333-118893, filed with the Commission on September 9,
2004).
|
||||
3.3
|
Amended
and Restated Bylaws of United Community Banks, Inc., dated September 12,
1997 (incorporated herein by reference to Exhibit 3.1 to United Community
Banks, Inc.’s Annual Report on Form 10-K, for the year ended December 31,
1997, File No. 0-21656, filed with the Commission on March 27,
1998).
|
||||
3.4
|
Amendment
to the Amended and Restated Articles of Incorporation of United Community
Banks, Inc. (incorporated herein by reference to Exhibit 3.1 to United
Community Banks, Inc.’s current report on Form 8-K, filed with the
Commission on December 5, 2008).
|
||||
4.1
|
See
Exhibits 3.1, 3.2 and 3.3 for provisions of the Restated Articles of
Incorporation, as amended, and Amended and Restated Bylaws, which define
the rights of the shareholders.
|
||||
10.1
|
United
Community Banks, Inc.’s 1995 Key Employee Stock Option Plan (incorporated
herein by reference to Exhibit 10.3 to United Community Banks, Inc.’s
Annual Report on Form 10-K for the year ended December 31, 1994, File
No. 0-21656).*
|
||||
10.2
|
United
Community Banks, Inc.’s Profit Sharing Plan, dated as of March 9, 2001
(incorporated herein by reference to Exhibit 4.3 to United Community
Banks, Inc.’s Registration Statement on Form S-8, File No. 333-86876,
filed with the Commission on April 24,
2002).*
|
Exhibit No.
|
Exhibit
|
|
10.3
|
Amendment
No. 1 to United Community Banks, Inc.’s Profit Sharing Plan, dated as of
March 15, 2002 (incorporated herein by reference to Exhibit 4.4 to United
Community Banks, Inc.’s Registration Statement on Form S-8, File No.
333-86876, filed with the Commission on April 24,
2002).*
|
||||
10.4
|
United
Community Banks, Inc.’s 2000 Key Employee Stock Option Plan (incorporated
herein by reference to Exhibit 4.3 to United Community Banks, Inc.’s
Registration Statement on Form S-8, File No. 333-99849, filed with the
Commission on September 19, 2002).*
|
||||
10.5
|
Amendment
to United Community Banks, Inc.’s 2000 Key Employee Stock Option Plan,
dated March 5, 2004 (incorporated herein by reference to United
Community Banks, Inc.’s Registration Statement on Form S-4, filed on
September 9, 2004).*
|
||||
10.6
|
Split-Dollar
Agreement between United and Jimmy C. Tallent dated June 1, 1994
(incorporated herein by reference to Exhibit 10.11 to United Community
Banks, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 1994, File No. 0-21656).*
|
||||
10.7
|
Form
of Amended and Restated Change of Control Severance Agreement by and
between United Community Banks, Inc. and Jimmy C. Tallent, Guy W. Freeman,
Rex S. Schuette and David Shearrow (incorporated herein by reference to
Exhibit 10.8 to United Community Banks, Inc.’s Annual Report on Form 10-K
for the year ended December 31, 2008, File No. 0-21656, filed with the
Commission on February 27, 2009).*
|
||||
10.8
|
Employment
Agreement by and between United Community Banks, Inc. and Glenn S. White
(incorporated herein by reference to Exhibit 10.9 to United Community
Banks, Inc.’s Annual Report on Form 10-K for the year ended December 31,
2008, File No. 0-21656, filed with the Commission on February 27,
2009).*
|
||||
10.9
|
United
Community Banks, Inc.’s Amended and Restated Modified Retirement Plan,
effective as of January 1, 2005 (incorporated herein by reference to
Exhibit 10.10 to United Community Banks, Inc.’s Annual Report on Form 10-K
for the year ended December 31, 2008, File No. 0-21656, filed with the
Commission on February 27, 2009).*
|
||||
10.10
|
United
Community Banks, Inc.’s Amended and Restated Deferred Compensation Plan,
effective as of January 1, 2005 (incorporated herein by reference to
Exhibit 10.11 to United Community Banks, Inc.’s Annual Report on Form 10-K
for the year ended December 31, 2008, File No. 0-21656, filed with the
Commission on February 27, 2009).*
|
||||
10.11
|
United
Community Banks, Inc. Dividend Reinvestment and Share Purchase Plan
(incorporated) herein by reference to Exhibit 4 to United Community Banks,
Inc.’s Registration Statement on Form S-3D, File No. 333-127477, filed
with the Commission on August 12, 2005).
|
||||
10.12 |
United
Community Banks, Inc. Employee Stock Purchase Plan, effective as of
December 20, 2005 (incorporated herein by reference to Exhibit 4 to United
Community Banks, Inc.’s Registration Statement on Form S-8, File No.
333-130489, filed with the commission on December 20,
2005).
|
Exhibit No.
|
Exhibit
|
|
10.13
|
Amendment
Number 2 to United Community Banks, Inc. 2000 Key Employee Stock Option
Plan, dated April 26, 2006 (incorporated herein by reference to Exhibit
10.1 to United Community Banks, Inc.’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2006, File No. 0-21656, filed with the
Commission on August 8, 2006).*
|
||||
10.14
|
United
Community Banks, Inc.’s Amended and Restated 2000 Key Employee Stock
Option Plan (incorporated herein by reference to Exhibit 10.1 to United
Community Banks, Inc.’s Current Report on Form 8-K, filed with the
Commission on May 1, 2007).*
|
||||
10.15
|
Form
of Senior Executive Officer Incentive Stock Option Agreement (incorporated
herein by reference to Exhibit 10.3 to United Community Banks, Inc.’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, File
No. 0-21656, filed with the Commission on August 7,
2009).*
|
||||
10.16
|
Form
of Senior Executive Officer Nonqualified Stock Option Agreement
(incorporated herein by reference to Exhibit 10.1 to United Community
Banks, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2009, File No. 0-21656, filed with the Commission on August 7,
2009).*
|
||||
10.17
|
Form
of Senior Executive Officer Restricted Stock Unit Award Agreement
(incorporated herein by reference to Exhibit 10.2 to United Community
Banks, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2009, File No. 0-21656, filed with the Commission on August 7,
2009).*
|
||||
10.18
|
United
Community Banks, Inc.’s Management Incentive Plan (incorporated herein by
reference to Exhibit 10.5 to United Community Banks, Inc.’s Current Report
on Form 8-K, filed with the Commission on May 1,
2007).*
|
||||
10.19
|
Amendment
No. 1 to United Community Banks, Inc.’s Amended and Restated 2000 Key
Employee Stock Option Plan (incorporated herein by reference to Exhibit
10.1 to United Community Banks, Inc.’s Current Report on Form 8-K, filed
with the Commission on April 13, 2007).*
|
||||
10.20
|
Subordinated
Term Loan Agreement, dated as of August 29, 2008, among United Community
Bank, as borrower, the lenders from time to time party thereto, and
SunTrust Bank as administrative agent (incorporated herein by reference to
Exhibit 10.1 to United Community Banks, Inc.’s current report on Form
8-K, filed with the Commission on August 28,
2008).
|
||||
10.21
|
Letter
Agreement, dated December 5, 2008, between United Community Banks, Inc.
and the United States Treasury, with respect to the issuance and sale of
Series B Preferred Stock and the Warrant (incorporated herein by reference
to Exhibit 10.1 to United Community Banks, Inc.’s current Report on Form
8-K, filed with the Commission on December 5, 2008).
|
||||
10.22
|
Form
of Senior Executive Officer Waiver, dated December 5, 2008, by Jimmy C.
Tallent, Guy W. Freeman, Rex S. Schuette, David Shearrow and Glenn S.
White (incorporated herein by reference to Exhibit 10.23 to United
Community Banks, Inc.’s Annual Report on Form 10-K for the year ended
December 31, 2008, File No. 0-21656, filed with the Commission on February
27, 2009).*
|
||||
14
|
Code
of Ethical Conduct (incorporated herein by reference to Exhibit 14 to
United Community Banks, Inc.’s Annual Report on Form 10-K for the year
ended December 31, 2003, File No. 0-21656, filed with the Commission on
March 8, 2004.).
|
Exhibit No.
|
Exhibit
|
|
21
|
Subsidiaries
of United
|
||||
23
|
Consent
of Independent Registered Public Accounting Firm
|
||||
24
|
Power
of Attorney of certain officers and directors of United (included on
Signature Page)
|
||||
31.1
|
Certification
by Jimmy C. Tallent, President and Chief Executive Officer of United
Community Banks, Inc., as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||||
31.2
|
Certification
by Rex S. Schuette, Executive Vice President and Chief Financial Officer
of United Community Banks, Inc., as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||||
32
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
||||
99
|
TARP
Compliance Certification pursuant to 31 C.F.R. Section
30.15.
|
*
|
Management
contract or compensatory plan or arrangement required to be filed as an
Exhibit to this Annual Report on Form 10-K pursuant to Item 15(c) of Form
10-K.
|
UNITED
COMMUNITY BANKS, INC.
|
|||
(Registrant)
|
|||
By:
|
/s/
Jimmy C. Tallent
|
||
Jimmy
C. Tallent
|
|||
President
and Chief Executive Officer
|
|||
(Principal
Executive Officer)
|
|||
By:
|
/s/
Rex S. Schuette
|
||
Rex
S. Schuette
|
|||
Executive
Vice President and Chief Financial Officer
|
|||
(Principal
Financial Officer)
|
|||
By:
|
/s/
Alan H. Kumler
|
||
Alan
H. Kumler
|
|||
Senior
Vice President, Controller and Chief Accounting Officer
|
|||
(Principal
Accounting Officer)
|
/s/
Jimmy C.
Tallent
|
/s/
Robert Blalock
|
|
Jimmy
C. Tallent
|
Robert
Blalock
|
|
President,
Chief Executive Officer and Director
|
Director
|
|
(Principal
Executive Officer)
|
||
/s/
Cathy Cox
|
||
/s/
Rex S. Schuette
|
Cathy
Cox
|
|
Rex
S. Schuette
|
Director
|
|
Executive
Vice President and Chief Financial Officer
|
||
(Principal
Financial Officer)
|
/s/
Hoyt O. Holloway
|
|
Hoyt
O. Holloway
|
||
/s/
Alan H. Kumler
|
Director
|
|
Alan
H. Kumler
|
||
Senior
Vice President, Controller and Chief Accounting
|
/s/
John D. Stephens
|
|
Officer
|
John
D. Stephens
|
|
(Principal
Accounting Officer)
|
Director
|
|
/s/
Robert L. Head, Jr.
|
/s/
Tim Wallis
|
|
Robert
L. Head, Jr.
|
Tim
Wallis
|
|
Chairman
of the Board
|
Director
|
|
/s/
W.C. Nelson, Jr.
|
||
W.
C. Nelson, Jr.
|
||
Vice
Chairman of the Board
|
Exhibit No. | Description | ||||
21
|
Subsidiaries
of United
|
||||
23
|
Consent
of Independent Registered Public Accounting Firm
|
||||
24
|
Power
of Attorney of certain officers and directors of United (included on
Signature Page).
|
||||
31.1
|
Certification
by Jimmy C. Tallent, President and Chief Executive Officer of United
Community Banks, Inc., as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||||
31.2
|
Certification
by Rex S. Schuette, Executive Vice President and Chief Financial Officer
of United Community Banks, Inc., as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||||
32
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
||||
99
|
TARP
Compliance Certification pursuant to 31 C.F.R. Section
30.15.
|