2010 Annual Report
United Community Banks, Inc.
Financial Highlights
(in millions, except per share data)
2010
2009
Core Earnings Summary
Net interest revenue
Core fee revenue
Core operating expenses
Core earnings (pre-tax, pre-credit)
Provision for loan losses
Foreclosed property costs
Loss on sale of non-performing assets
FDIC special assessment
Bank-owned life insurance adjustments
Securities gains, net
Loss on prepayment of borrowings
Gain on sale of low income housing tax credits
Income tax benefit
Net operating loss
Gain from acquisition
Non-cash goodwill impairment charges
Partial recovery of 2007 fraud loss
Severance costs
(Loss) income from discontinued operations
Gain from sale of subsidiary
Net loss
Preferred dividends and discount accretion
Net loss available to common shareholders
Per Common Share
Diluted operating loss from continuing operations
Diluted loss
Book value
Tangible book value
Performance Measures
Net interest margin
Allowance for loan losses to loans
Tangible common equity to assets (year-end)
Tier I risk-based capital ratio (year-end)
As of Year-End
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
Shareholders
Employees
Banking offices
$ 243.1
47.5
177.2
113.4
(234.8)
(65.7)
(45.3)
-
-
2.5
(2.2)
.7
88.0
(143.4)
-
(210.6)
7.2
-
(.1)
1.3
(345.6)
(10.3)
$ (355.9)
$ 245.2
47.5
182.9
109.8
(310.0)
(32.3)
-
(3.8)
2.0
2.8
-
.7
91.7
(139.1)
7.1
(95.0)
-
(1.8)
.5
-
(228.3)
(10.2)
$ (238.5)
$
(1.62)
(3.76)
4.84
4.76
$
(2.47)
(3.95)
8.36
6.02
3.56 %
3.79
6.08
9.67
3.29 %
3.02
7.30
12.41
$ 4,604.1
1,490.2
7,443.2
6,469.2
635.5
94,685
18,000
1,817
106
$ 5,151.5
1,530.0
7,999.9
6,627.8
962.3
94,046
17,500
1,818
107
Letter to Shareholders
Dear Shareholder,
This is an extraordinary time in the history of our
company. When I wrote last year’s annual report letter,
I fully expected that by now we would be through the
recession, that our troubled asset values would have
stabilized and that 2011 would be a year of more normal
growth and reduced unemployment. I was wrong.
The economic downturn continues in our markets.
Unemployment remains at historical highs. Real estate
asset values have not stabilized, and in some of our
markets they continue to decline.
Despite these challenging conditions, 2010 was a year of progress
and achievement for United Community Banks. I hope 2011 will
be better, but we know that business decisions cannot be based
solely on hope. I believe it is important, therefore, to focus this
letter largely on one specific and significant action – our recent
capital transaction – because it deserves the full attention and
understanding of each shareholder.
First, some perspective. As you know, the entire banking industry
was severely impacted by the deep recession and collapse of
the real estate market, and United certainly was no exception.
Residential real estate in our metro Atlanta, north Georgia,
coastal Georgia and western North Carolina markets has suffered
disproportionately. I say that as background, not as an excuse: I
accept full responsibility for the decisions and performance of this
company, regardless of environment. I will add that United has
known only success for most of its six decades, and the adversity
of the past three years has been foreign, difficult and unforgiving.
It has been said that adversity builds character and leaves you
stronger, and I firmly believe this to be the case with United
Community Banks.
We have made aggressive efforts over the past two years to
resolve credit issues, restore our net interest margin, increase core
transaction deposits and grow relationships with small businesses
and other commercial enterprises. I have
regulatory challenges. We considered three
detailed to you our commitment to reduce
alternatives: (1) maintaining the status quo
costs and improve efficiency through process
and letting time and economic conditions
improvements and workforce reduction. I
heal our problems, (2) selling common or
have outlined the opportunities we’ve pursued
preferred stock in public or private offerings,
to preserve and enhance capital, including
and (3) selling the company to a larger
aggressive actions such as participation in the
financial institution. After considering these
U.S. Treasury’s Capital Purchase Program and
alternatives, the board concluded that an
a capital infusion in 2009. Other actions –
optimal business plan would have to meet the
such as removing $103 million in problem
following objectives:
assets by partnering with a private equity firm
– improved our balance sheet. Our financial
• raise additional capital;
and credit performance improved in the third
• demonstrate a meaningful reduction in
and fourth quarters of 2010, and we have
non-performing assets to strengthen and
seen further improvement in the first quarter
de-risk the balance sheet;
of 2011.
• address concerns over any potential
write-down of deferred tax assets;
Progress has not come swiftly or strongly
• show a clear and defined path back
enough, however, and as we turned the
to sustainable profitability within a
2
calendar to 2011 our classified assets were still
relatively short time period; and
too high in relation to capital. Regulators
• allow us to take advantage of
follow this ratio closely as they assess the
opportunities, such as potentially
health and strength of our bank, and we
entering new markets and acquiring
knew that pressure from their direction would
branches and other assets of other
increase until we resolved this situation.
financial institutions through negotiated
Regulators can place controls on a bank’s
purchases, mergers and FDIC-assisted
growth and activities, and a bank that is not
transactions.
in good standing can find it difficult to take
advantage of growth opportunities. This is an
We determined that the best way to
explanation, not a complaint; regulators have
accomplish these objectives was to sell a
a job to do and we respect that.
significant amount of stock to institutional
investors in a private offering. This strategy
Under these circumstances, management
would enable us to recapitalize the company
and the board of directors evaluated strategic
at a favorable price to market, and use a
alternatives to address our credit, financial and
portion of the capital to divest a substantial
3
amount of our classified and most risky assets.
of our outstanding voting and non-voting
This course would serve both short and long-
common stock.
term interests of our existing shareholders,
employees, customers and communities
As part of the capital investment, we also
because it would:
announced plans to significantly improve
our balance sheet by selling and disposing of
• restore the bank’s compliance with its
approximately $435 million in substandard
memorandum of understanding with
performing and non-performing loans and
regulators;
foreclosed properties, by the end of the second
• allow us to resume dividend and interest
quarter. By the time you receive this letter,
payments on our preferred stock and
most of the asset disposition will already have
trust preferred securities;
been accomplished.
• allow us to avoid more serious
regulatory enforcement actions;
The recapitalization, loan sale and disposition
• provide a significant level of capital to
of foreclosed properties are perhaps the most
de-risk our balance sheet by disposing of
significant developments in the recent history
riskier assets;
of our company. They will result in a stronger
• return the company quickly to
organization that is better positioned to focus
profitability; and
on the many growth opportunities in our
• allow us to take advantage of growth
markets – opportunities that can drive our
opportunities.
success for years to come.
On March 30, 2011, we completed a capital
Corsair, the lead investor, is a multinational
transaction with Corsair Capital, LLC
private equity firm with a long and successful
(“Corsair”) and seven other institutional
track record of partnering strategically with, and
investors. They provided $380 million of
investing in, banks and financial institutions
capital by purchasing a combination of our
worldwide. I strongly believe they are an ideal
common stock at a price of $1.90 per share
partner for United and our shareholders.
and preferred stock that will be converted into
common stock, mandatorily, at a conversion
All eight of the investors know our industry
price of $1.90 per share after shareholder
and have examined our company in detail.
approval. When the preferred stock is
They concluded that we are a quality
converted, and assuming all of the proposals
franchise with strong management supported
are approved at the annual meeting, these
by extraordinarily dedicated and talented
investors will own approximately 70 percent
employees. They saw that United has a proven
successful business model, an unmatched
a more balanced portfolio with increased focus
record of customer satisfaction and significant
on small business and commercial loans. The
opportunities for profitability and growth in
new capital will enable us to place additional
the short and long term. In their opinion,
commercial loan officers in our metropolitan
which is considerable, all of these attributes
markets. While taking no pleasure from
made United an attractive investment.
the problems of other banks, we will be
in a position to attract new customers and
We recognize that this transaction is dilutive
employees from weaker financial institutions.
to existing shareholders. I know you don’t
like that and neither do I, nor do the other
Further, our new lead investor – Corsair
directors, all of whom are significant United
– provides a level of comfort because its
shareholders. We could have perhaps
interests are in line with those of our other
struggled through with smaller amounts
shareholders. When Corsair benefits, all
of capital along the way, returned to good
shareholders benefit proportionally. As
standing with our regulators in a few years,
part of this partnership, we are proud to
and found selected growth opportunities still
gain an excellent new board member, Peter
available. We would have had less dilution
Raskind. Peter has a very impressive resume,
as shareholders, but of a smaller, sleepy
including past service as CEO of National City
4
institution. We rejected that course because
Corporation. We look forward to the benefit
we don’t believe high-initiative employees can
of his banking history, experience with public
be attracted and retained where opportunity
companies and many other strong attributes.
is lacking. We don’t believe communities will
thrive to their full potential without the active,
Our increased capital also is consistent
creative and stable financial support of locally
with the guidance from regulators, freeing
focused banks. We don’t believe we can live the
us to concentrate on productive things like
United golden rule – treating our customers the
operating, strengthening and growing the
way we want to be treated – without sufficient
company we have all worked so very hard to
strength to fully support the people providing
create and sustain.
the service. What we do believe is we should
actively control our destiny to the highest
While recognizing that the economy has its
possible extent, rather than passively wait for
inevitable impact on every company, I look to
events to determine our future.
the future with optimism. The fundamentals
We are also shifting our risk profile from a
place – in fact, they are stronger than ever
concentration on residential real estate loans to
before. Core deposit growth is the best in
that built this great organization are still in
our history. People are moving business to United at a rate higher than
we have ever seen. Our customer satisfaction is nothing less than the
best among U.S. banks; we have been recognized as such by Customer
Service Profiles, an independent research firm. In addition, J.D. Power
and Associates included United on its distinguished “Customer Service
Champion” list, which includes only 39 other companies and no other
banks. This follows our 2010 J. D. Power award for ‘Highest Customer
Satisfaction in Retail Banking in the Southeast Region.’ What a record. I
believe we have the best bankers in the industry.
In fact, there has never been a more passionate group of people, nor one
that responds to need with a greater sense of professional urgency, than
United Community Bank employees. They have remained steadfast; not
for a moment have they taken their eye off the ball. Our ability to attract
world-class investors is a testament to these talented people, and the high
threshold to which they have raised our company. I congratulate and
thank them.
5
I also thank you, for your patience and dedication to United. Your trust
has allowed us to secure a course of action that puts us in position to
return to profitability more quickly.
With our people, vision, strategy, drive, and now capital, we are in a much
better position to seize the opportunities before us. That is what we
intend to do.
Sincerely,
Jimmy Tallent
President and Chief Executive Officer
United Community Banks, Inc.
Consolidated Statement of Income
(in thousands, except per share data)
2010
2009
2008
$ 277,904
59,958
3,260
341,122
$
322,509
77,370
2,950
402,829
$
385,959
75,869
2,880
464,708
Interest Revenue
Loans, including fees
Investment securities
Federal funds sold, commercial paper and deposits in banks
Total interest revenue
Interest Expense:
Deposits:
NOW
Money market
Savings
Time
Total deposit interest expense
Federal funds purchased, repurchase agreements and other short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Total interest expense
Net interest revenue
Provision for loan losses
Net interest revenue after provision for loan losses
Fee Revenue:
Service charges and fees
Mortgage loan and other related fees
Brokerage fees
Securities gains, net
Gain from acquisition
Losses on prepayment of borrowings
Other
Total fee revenue
Total revenue
Operating Expenses:
Salaries and employee benefits
Communications and equipment
Occupancy
Advertising and public relations
Postage, printing and supplies
Professional fees
Foreclosed property
FDIC assessments and other regulatory charges
Amortization of intangibles
Goodwill impairment
Loss on sale of non-performing assets
Severance costs
Other
Total operating expenses
Loss from continuing operations before income taxes
Income tax benefit
Net loss from continuing operations
(Loss) income from discontinued operations, net of income taxes
Gain from sale of subsidiary, net of income taxes and selling costs
Net loss
Preferred stock dividends
Net loss available to common shareholders
6,966
7,552
331
66,883
81,732
4,235
3,355
10,749
100,071
241,051
223,000
18,051
30,127
7,019
2,662
2,552
-
(2,233)
8,421
48,548
66,599
96,618
13,781
15,394
4,625
4,072
9,254
65,707
13,747
3,160
210,590
45,349
-
16,594
498,891
(432,292)
(85,492)
(346,800)
(101)
1,266
(345,635)
10,316
(355,951)
$
11,023
9,545
483
120,326
141,377
2,842
4,622
10,893
159,734
243,095
310,000
(66,905)
30,986
8,959
2,085
2,756
11,390
-
6,178
62,354
(4,551)
101,568
14,676
15,653
3,950
5,040
11,480
32,365
16,004
3,104
95,000
-
2,898
13,210
314,948
(319,499)
(90,659)
(228,840)
513
-
(228,327)
10,242
$ (238,569)
Loss per common share - Basic / Diluted
Cash dividends per common share
Weighted average common shares outstanding - Basic / Diluted
$
(3.76)
$
(3.95)
-
94,624
-
60,374
6
28,626
10,643
764
158,268
198,301
7,699
13,026
9,239
228,265
236,443
184,000
52,443
31,683
7,103
3,457
1,315
-
(2,714)
5,237
46,081
98,524
104,056
15,139
14,862
5,695
6,243
9,191
19,110
6,020
3,009
-
-
-
17,010
200,335
(101,811)
(37,912)
(63,899)
449
-
$
$
(63,450)
724
(64,174)
(1.35)
.18
47,369
Consolidated Balance Sheet
(in thousands, except share data)
2010
2009
Assets
Cash and due from banks
Interest-bearing deposits in banks
Federal funds sold, commercial paper and short-term investments
Cash and cash equivalents
Securities available for sale
Securities held to maturity (fair value $267,988)
Mortgage loans held for sale
Loans, net of unearned income
Less allowance for loan losses
Loans, net
Assets covered by loss sharing agreements with the FDIC
Premises and equipment, net
Accrued interest receivable
Goodwill and other intangible assets
Foreclosed property
Other assets
$
95,994
111,901
441,562
649,457
1,224,417
265,807
35,908
4,604,126
174,695
4,429,431
131,887
178,239
24,299
11,446
142,208
350,097
$
126,265
120,382
129,720
376,367
1,530,047
-
30,226
5,151,476
155,602
4,995,874
185,938
182,038
33,867
225,196
120,770
319,591
Total assets
$ 7,443,196
$ 7,999,914
7
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Demand
NOW
Money market
Savings
Time:
Less than $100,000
Greater than $100,000
Brokered
Total deposits
Federal funds purchased, repurchase agreements and other short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Accrued expenses and other liabilities
Total liabilities
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A, $10 stated value; 21,700 shares issued and outstanding
Series B, $1,000 stated value; 180,000 shares issued and outstanding
Common stock, $1 par value; 200,000,000 shares authorized;
94,685,003 and 94,045,603 shares issued
Common stock issuable; 336,437 and 221,906 shares
Capital surplus
(Accumulated deficit) retained earnings
Accumulated other comprehensive income
Total shareholders’ equity
$
793,414
1,424,781
891,252
183,894
1,496,700
1,002,359
676,772
6,469,172
101,067
55,125
150,146
32,171
6,807,681
217
175,711
94,685
3,894
665,496
(335,567)
31,079
635,515
707,826
$
1,335,790
713,901
177,427
1,746,511
1,187,499
758,880
6,627,834
101,389
114,501
150,066
43,803
7,037,593
217
174,408
94,046
3,597
622,034
20,384
47,635
962,321
Total liabilities and shareholders’ equity
$ 7,443,196
$ 7,999,914
Selected Financial Data - Quarterly Core Summary
(in millions, except per share data; taxable equivalent)
2010
4th Q
3rd Q
2nd Q
1st Q
Core Earnings Summary
Net interest revenue
Core fee revenue (1)
Core revenue (1)
Core operating expenses (2)
Core earnings (pre-tax, pre-credit) (1)(2)
Operating provision for loan losses (3)
Foreclosed property costs
Write downs and losses from sales
Other expenses
Loss on sale of non-perfoming assets
Securities gains, net
Loss on prepayment of borrowings
Gain on sale of low income housing tax credits
Income tax benefit
Net operating loss from continuing operations (4)
Non-cash goodwill impairment charges
Partial reversal of fraud loss provision, net of tax expense
(Loss) income from discontinued operations
Gain from sale of subsidiary, net of income taxes and selling costs
Net loss
Preferred dividends and discount accretion
Net loss available to common shareholders
Performance Measures
Per common share:
Diluted operating loss from continuing operations (4)
Diluted loss from continuing operations
Diluted loss
Book value
Tangible book value (5)
Key performance ratios:
Net interest margin (6)
Tangible equity to assets (period-end) (5)
Tangible common equity to assets (period-end) (5)
Asset Quality*
Non-performing loans
Foreclosed properties
Total non-performing assets (NPAs)
Allowance for loan losses
Operating net charge-offs (1)
Allowance for loan losses to loans
Operating net charge-offs to average loans (1)(6)
NPAs to loans and foreclosed properties
NPAs to total assets
At Period End
Loans*
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding
$
$
$
$
$
$
$
$
$
$
60.1
11.8
71.9
44.3
27.6
(47.8)
(15.8)
(4.8)
-
-
-
.7
16.5
(23.6)
-
7.2
-
-
(16.4)
2.6
(19.0)
(.28)
(.20)
(.20)
4.84
4.76
3.58 %
8.45
6.08
179.1
142.2
321.3
174.7
47.7
3.79 %
4.03
6.77
4.32
4,604
1,490
7,443
6,469
636
94.7
2009
4th Q
$
$
$
61.3
11.6
72.9
44.0
28.9
(75.0)
(8.1)
(2.7)
-
.1
-
-
22.4
(34.4)
-
-
(.1)
1.3
(33.2)
2.6
(35.8)
(.39)
(.39)
(.38)
7.95
5.62
63.9
11.7
75.6
45.7
29.9
(90.0)
(9.6)
(4.8)
-
2.0
-
.7
31.7
(40.1)
-
-
.2
-
(39.9)
2.6
(42.5)
(.45)
(.45)
(.45)
8.36
6.02
3.49 %
9.27
6.98
3.40 %
9.54
7.30
8
$
$
$
60.0
12.6
72.6
45.2
27.4
(50.5)
(14.2)
(5.5)
-
2.5
(2.2)
-
16.7
(25.8)
(210.6)
-
-
-
(236.4)
2.6
(239.0)
(.30)
(2.52)
(2.52)
5.14
5.05
61.6
11.6
73.2
43.8
29.4
(61.5)
(11.2)
(3.3)
(45.3)
-
-
-
32.4
(59.5)
-
-
-
-
(59.5)
2.6
(62.1)
(.66)
(.66)
(.66)
7.71
5.39
3.57 %
9.35
6.84
3.60 %
9.22
6.86
$
$
$
$
$
$
217.8
129.9
347.7
174.6
50.0
3.67 %
4.12
7.11
4.96
4,760
1,310
7,013
5,999
662
94.4
224.3
123.9
348.2
174.1
61.3
3.5 %
4.98
6.97
4.55
280.8
136.3
417.1
173.9
56.7
3.48 %
4.51
8.13
5.32
$
4,873
1,488
7,652
6,330
904
94.3
4,992
1,527
7,837
6,488
926
94.2
$
$
264.1
120.8
384.9
155.6
84.6
3.02 %
6.37
7.30
4.81
5,151
1,530
8,000
6,628
962
94.0
(1) Excludes net securities gains and losses, losses from the prepayment of borrowings and gains from the sale of low income housing tax credits. (2) Excludes foreclosed property costs, goodwill impairment charges and the loss on the
sale of non-performing assets to Fletcher International. (3) Excludes an $11.75 million partial recovery of a 2007 fraud related loan loss and the reversal of the related provision for loan losses. (4) Excludes after-tax effect of the goodwill
impairment charge and the partial recovery of a 2007 fraud related loan loss, both of which were considered to be non-operating items and are therefore excluded from operating earnings. Also excludes earnings (loss) from discontinued
operations and the gain from the sale of Brintech. (5) Excluded the effect of acquisition related intangible assets. (6) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
Selected Financial Data - Annual Core Summary
(in millions, except per share data; taxable equivalent)
2010
2009
2008
2007
2006
Core Earnings Summary
Net interest revenue
Core fee revenue (1)
Core revenue (1)
Core operating expenses (2)
Core earnings (pre-tax, pre-credit) (1)(2)
Operating provision for loan losses (3)
Foreclosed property costs
Write downs and losses from sales
Other expenses
Loss on sale of non-performing assets
FDIC special assessment
Bank-owned life insurance adjustments
Securities gains (losses), net
Loss on prepayment of borrowings
Gain on sale of low income housing tax credits
Income tax benefit
Net operating (loss) income from continuing operations (4)
Gain from acquisition, net of tax
Non-cash goodwill impairment charges
Severance cost, net of tax benefit
Fraud loss provision and subsequent recovery, net of tax benefit
Net (loss) income from discontinued operations
Gain from sale of subsidiary, net of income taxes and selling costs
Net (loss) income
Preferred dividends and discount accretion
Net (loss) income available to common shareholders
9
Performance Measures
Per common share:
Diluted operating (loss) earnings from continuing operations (4)
Diluted (loss) earnings
Cash dividends declared (rounded)
Stock dividends declared (6)
Book value
Tangible book value (5)
Key performance ratios:
Net interest margin
Tangible equity to assets (5)
Tangible common equity to assets (5)
Asset Quality*
Non-performing loans
Foreclosed properties
Total non-performing assets (NPAs)
Allowance for loan losses
Operating net charge-offs (3)
Allowance for loan losses to loans
Operating net charge-offs to average loans (3)
NPAs to loans and foreclosed properties
NPAs to total assets
At Year End
Loans*
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding
$
$
$
$
$
$
$
$
$
$
243.1
47.5
290.6
177.2
113.4
(234.8)
(49.3)
(16.4)
(45.3)
-
-
2.5
(2.2)
.7
88.0
(143.4)
-
(210.6)
-
7.2
(.1)
1.3
(345.6)
10.3
(355.9)
(1.62)
(3.76)
-
-
4.84
4.76
3.56 %
9.15
6.80
179.1
142.2
321.3
174.7
215.7
3.79 %
4.42
6.77
4.32
4,604
1,490
7,443
6,469
636
94.7
245.2
47.5
292.7
182.9
109.8
(310.0)
(18.1)
(14.2)
-
(3.8)
2.0
2.8
-
.7
91.7
(139.1)
7.1
(95.0)
(1.8)
-
.5
-
(228.3)
10.2
(238.5)
(2.47)
(3.95)
-
3 for 130
8.36
6.02
$
$
3.29 %
8.33
6.15
264.1
120.8
384.9
155.6
276.7
3.02 %
5.03
7.30
4.81
5,151
1,530
8,000
6,628
962
94.0
$
$
$
$
238.7
47.5
286.2
179.3
106.9
(184.0)
(12.4)
(6.7)
-
-
(2.0)
1.3
(2.7)
-
35.7
(63.9)
-
-
-
-
.4
-
(63.5)
.7
(64.2)
(1.36)
(1.35)
.18
2 for 130
16.95
10.39
3.18 %
6.67
6.57
190.7
59.8
250.5
122.3
151.2
2.14 %
2.57
4.35
2.92
5,705
1,617
8,592
7,004
989
48.0
$
$
$
$
$
$
$
$
$
274.5
52.7
327.2
177.3
149.9
(37.6)
(1.5)
(2.9)
-
-
-
3.2
(2.2)
-
(40.3)
68.6
-
-
-
(11.0)
.4
-
58.0
-
58.0
1.47
1.24
.36
-
17.73
10.94
3.88 %
6.63
6.63
28.2
18.1
46.3
89.4
21.8
1.51 %
.38
.78
.56
5,929
1,357
8,207
6,076
832
46.9
237.9
42.9
280.8
154.3
126.5
(14.6)
(.5)
(.5)
-
-
-
(.6)
(.6)
-
(41.3)
68.4
-
-
-
-
.4
-
68.8
-
68.8
1.65
1.66
.32
-
14.37
10.57
4.05 %
6.32
6.32
12.5
1.2
13.7
66.6
5.5
1.24 %
.12
.25
.19
5,377
1,107
7,101
5,773
617
42.9
(1) Excludes net securities gains and losses, losses from the prepayment of borrowings, gain from the acquisition of Southern Community Bank and gains from the sale of low income housing tax credits. (2) Excludes foreclosed property costs,
goodwill impairment charges, severance costs, the special FDIC assessment in 2009, the loss from the sale of non-performing assets to Fletcher International in 2010 and a bank-owned life insurance expense item and subsequent recovery.
(3) Excludes fraud-related provision for loan losses and related charge-offs of $18 million in 2007 and the subsequent partial recovery and provision reversal of $11.75 million in 2010. (4) Excludes after-tax effect of goodwill impairment
charges, severance costs, gain from the acquisition of Southern Community Bank and fraud-related loan losses and subsequent partial recovery, all of which are considered to be non-operating items and are therefore excluded from operating
earnings. Also excludes earnings (loss) from discontinued operations and the gain from the sale of Brintech. (5) Excludes the effect of acquisition-related intangible assets. (6) Number of new shares issued for shares currently held.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
Corporate Information
Financial Information
Analysts and investors seeking financial
information should contact:
Rex S. Schuette
Executive Vice President and
Chief Financial Officer
(706) 781-2265
rex_schuette@ucbi.com
This Annual Report contains forward-
looking statements that involve risk and
uncertainty and actual results could differ
materially from the anticipated results
or other expectations expressed in the
forward-looking statements. A discussion
of factors that could cause actual results to
differ materially from those expressed in the
forward-looking statements is included in
the Annual Report on Form 10-K filed with
the Securities and Exchange Commission.
This Annual Report also contains financial
measures that were prepared on a basis
different from accounting principles
generally accepted in the United States
(“GAAP”). References to operating earnings,
pre-tax, pre-credit earnings and core
earnings are non-GAAP financial measures.
Management has included such non-GAAP
financial measures because such non-GAAP
measures exclude certain non-recurring
revenue and expense items and therefore
provide a meaningful basis for analyzing
financial trends. A reconciliation of these
measures to financial measures determined
using GAAP is included in the Annual Report
on Form 10-K filed with the Securities and
Exchange Commission.
Stock Price
United Community Banks, Inc.’s common stock is traded on the Nasdaq Global Select market under the
symbol UCBI. Quarterly stock prices for 2010 and 2009 are provided in the following table.
2010
2009
Quarter
High
Low
Close
Average
Daily
Volume
High
Low
Close
Average
Daily
Volume
1st
2nd
3rd
4th
$ 5.00 $ 3.21 $ 4.41
882,923
$ 13.87 $ 2.28 $ 4.16
524,492
6.20
3.86
3.95
849,987
4.10
2.60
2.04
1.10
2.24
810,161
1.95 1,084,578
9.30
8.00
5.33
4.01
4.80
3.07
5.99
244,037
5.00
525,369
3.39 1,041,113
Account Consolidation
If you receive duplicate statements from
United and wish to discontinue such
mailings, or would like to consolidate your
accounts, contact Shareholder Relations at
(866) 270-5900 or investor_relations@ucbi.com.
This will enable United to avoid unnecessary
cost for duplication and mailing.
Independent Registered
Public Accountants
Porter Keadle Moore, LLP
Atlanta, Georgia
Legal Counsel
Kilpatrick Townsend & Stockton LLP
Atlanta, Georgia
Shareholders seeking information on stock-
transfer requirements, lost certificates,
dividends and other shareholder matters,
should contact Shareholder Relations.
Transfer Agent and
Registrant
IST Shareholder Services
209 West Jackson Blvd., Suite 903
Chicago, Illinois 60606
(312) 427-2953
Equal Opportunity
Employer
United Community Banks is an equal
opportunity employer. All matters regarding
recruiting, hiring, training, compensation,
benefits, promotions, transfers and other
personnel policies will remain free from
discriminatory practices.
United Community Banks, Inc. © 2011.
Board of Directors
Robert L. Head, Jr.
Chairman
Owner, Head Westgate
W.C. Nelson, Jr.
Vice Chairman
Owner, Nelson Tractor Company
Jimmy C. Tallent
President and
Chief Executive Officer
Robert H. Blalock
Owner, Blalock Insurance
Agency, Inc.
Cathy Cox
President, Young Harris College
Hoyt O. Holloway
Owner, H and H Farms
Peter E. Raskind
Principal
JMB Consulting LLC
John D. Stephens
Partner, Stephens MDS, LP
Tim Wallis
President and
Chief Executive Officer
Wallis Printing Company
Zell B. Miller
Director Emeritus
Retired U.S. Senator
Executive Officers
Jimmy C. Tallent
President and
Chief Executive Officer
Guy W. Freeman
Executive Vice President
Chief Operating Officer
Rex S. Schuette
Executive Vice President
Chief Financial Officer
David P. Shearrow
Executive Vice President
Chief Risk Officer
Craig Metz
Executive Vice President
Corporate Marketing
Bill M. Gilbert
Senior Vice President
Retail Banking
Glenn S. White
President, Atlanta Region
United Community Banks, Inc. | 125 Highway 515 East | Blairsville, Georgia 30512
706.781.2265 | 866.270.7200 | ucbi.com