UNITED COMMUNITY BANKS, INC.
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 1
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2005
Commission File Number 0-21656
UNITED COMMUNITY BANKS, INC.
(Exact name of registrant as specified in its charter)
     
Georgia   58-1807304
     
(State or other jurisdiction of
incorporation)
  (I.R.S. Employer Identification No.)
     
63 Highway 515, Blairsville, Georgia   30512
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (706) 781-2265
Securities registered pursuant to Section 12(b) of the Act: None
Name of exchange on which registered: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $1.00 par value
     Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes þ     No o
     Indicate by check mark if the registrant is not required to file reports pursuant to Sections 13 or 15(d) of the Act.
Yes o     No þ
     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes þ     No o
     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
o
     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (check one):
Large accelerated filer þ     Accelerated filer o     Non-accelerated filer o
     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes o     No þ
     Aggregate market value of the voting stock held by non-affiliates of the Registrant: $814,107,000 (based on shares held by non-affiliates at $26.02 per share, the closing stock price on the Nasdaq stock market on June 30, 2005).
     As of January 31, 2006, 40,080,244 shares of common stock were issued and outstanding, including 372,000 shares deemed outstanding pursuant to prime plus 1/4% convertible subordinated payable-in-kind debentures due December 31, 2006 and presently exercisable options to acquire 1,252,868 shares.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on April 26, 2006 are incorporated herein into Part III by reference.
 
 

 


 

EXPLANATORY NOTE
United Community Banks, Inc. is filing this amendment on Form 10-K/A to its Form 10-K for the year ended December 31, 2005 to replace the table in Item 6. Selected Financial Data titled “Selected Financial Information For the Years Ended December 31.” The compound annual growth rate in the far right column of the original table had been calculated incorrectly.
United Community Banks, Inc. is filing an unofficial PDF copy of the entire Form 10-K, as amended, with this amendment.

 


 

ITEM 6. SELECTED FINANCIAL DATA
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
                                                 
(in thousands, except per share data;                                           5 Year  
taxable equivalent)   2005     2004     2003     2002     2001     CAGR (4)  
INCOME SUMMARY
                                               
Interest revenue
  $ 338,818     $ 239,386     $ 209,338     $ 195,932     $ 210,036          
Interest expense
    127,426       74,794       70,600       76,357       100,874          
 
                                     
Net interest revenue
    211,392       164,592       138,738       119,575       109,162       17 %
Provision for loan losses
    12,100       7,600       6,300       6,900       6,000          
Fee revenue
    46,148       39,539       38,184       30,734       25,267       20  
 
                                     
Total revenue
    245,440       196,531       170,622       143,409       128,429       18  
Operating expenses (1)
    155,401       122,568       107,900       91,124       83,906       16  
 
                                     
Income before taxes
    90,039       73,963       62,722       52,285       44,523       21  
Income taxes
    33,297       26,807       23,247       19,505       16,208          
 
                                     
Net operating income
    56,742       47,156       39,475       32,780       28,315       21  
Merger-related charges, net of tax
          565       1,357             1,084          
 
                                     
Net income
  $ 56,742     $ 46,591     $ 38,118     $ 32,780     $ 27,231       31  
 
                                     
OPERATING PERFORMANCE (1)
                                               
Earnings per common share:
                                               
Basic
  $ 1.47     $ 1.31     $ 1.15     $ 1.02     $ .89       16  
Diluted
    1.43       1.27       1.12       .99       .87       16  
Return on tangible equity (2)(3)
    18.99 %     19.74 %     19.24 %     17.88 %     18.19 %        
Return on assets
    1.04       1.07       1.06       1.11       1.10          
Efficiency ratio
    60.15       60.05       60.89       60.66       62.52          
Dividend payout ratio
    19.05       18.32       17.39       16.34       14.98          
GAAP PERFORMANCE
                                               
Per common share:
                                               
Basic earnings
  $ 1.47     $ 1.29     $ 1.11     $ 1.02     $ .86       26  
Diluted earnings
    1.43       1.25       1.08       .99       .84       25  
Cash dividends declared (rounded)
    .28       .24       .20       .17       .13       23  
Book value
    11.80       10.39       8.47       6.89       5.98       19  
Tangible book value (3)
    8.94       7.34       6.52       6.49       5.40       15  
Key performance ratios:
                                               
Return on equity (2)
    13.46 %     14.39 %     14.79 %     16.54 %     16.08 %        
Return on assets
    1.04       1.05       1.02       1.11       1.05          
Net interest margin
    4.14       4.00       3.99       4.33       4.51          
Dividend payout ratio
    19.05       18.60       18.02       16.34       15.50          
Equity to assets
    7.63       7.45       7.21       7.01       6.81          
Tangible equity to assets (3)
    5.64       5.78       6.02       6.60       6.18          
ASSET QUALITY
                                               
Allowance for loan losses
  $ 53,595     $ 47,196     $ 38,655     $ 30,914     $ 27,124          
Non-performing assets
    12,995       8,725       7,589       8,019       9,670          
Net charge-offs
    5,701       3,617       4,097       3,111       4,578          
Allowance for loan losses to loans
    1.22 %     1.26 %     1.28 %     1.30 %     1.35 %        
Non-performing assets to total assets
    .22       .17       .19       .25       .35          
Net charge-offs to average loans
    .14       .11       .15       .14       .25          
AVERAGE BALANCES
                                               
Loans
  $ 4,061,091     $ 3,322,916     $ 2,753,451     $ 2,239,875     $ 1,854,968       19  
Investment securities
    989,201       734,577       667,211       464,468       489,332       11  
Earning assets
    5,109,053       4,119,327       3,476,030       2,761,265       2,419,080       17  
Total assets
    5,472,200       4,416,835       3,721,284       2,959,295       2,585,290       17  
Deposits
    4,003,084       3,247,612       2,743,087       2,311,717       2,010,105       16  
Stockholders’ equity
    417,309       329,225       268,446       207,312       176,144       25  
Common shares outstanding:
                                               
Basic
    38,477       36,071       34,132       32,062       31,691          
Diluted
    39,721       37,273       35,252       33,241       32,624          
AT PERIOD END
                                               
Loans
  $ 4,398,286     $ 3,734,905     $ 3,015,997     $ 2,381,798     $ 2,007,990       20  
Investment securities
    990,687       879,978       659,891       559,390       470,176       14  
Earning assets
    5,470,718       4,738,389       3,796,332       3,029,409       2,554,530       18  
Total assets
    5,865,756       5,087,702       4,068,834       3,211,344       2,749,257       18  
Deposits
    4,477,600       3,680,516       2,857,449       2,385,239       2,116,499       18  
Stockholders’ equity
    472,686       397,088       299,373       221,579       194,665       24  
Common shares outstanding
    40,020       38,168       35,289       31,895       32,266          
 
(1)   Excludes pre-tax merger-related and restructuring charges totaling $.9 million, or $.02 per diluted common share, recorded in 2004; $2.1 million, or $.04 per diluted common share, recorded in 2003; and $1.6 million, or $.03 per diluted common share, recorded in 2001.
 
(2)   Net income available to common stockholders, which excludes preferred stock dividends, divided by average realized common equity which excludes accumulated other comprehensive income (loss).
 
(3)   Excludes effect of acquisition related intangibles and associated amortization.
 
(4)   Compound annual growth rate.

 


 

SIGNATURES
     Pursuant to the requirements of Section 13 or 15(a) of the Securities Exchange Act of 1934, United has duly caused this Report on Form 10-K, as amended, to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Blairsville, State of Georgia, on the 6th of March, 2006.
         
  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
   
   
 
   
   
Jimmy C. Tallent
   
   
President, Chief Executive Officer and Director
   
   
(Principal Executive Officer)
   
   
 
   
   
 
   
   
Robert L. Head, Jr.
   
   
Chairman of the Board
   
   
 
   
   
*
   
   
 
   
   
W. C. Nelson, Jr.
   
   
Vice Chairman of the Board
   
   
 
   
   
*
   
   
 
   
   
A. William Bennett
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Robert Blalock
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Guy W. Freeman
   
   
Director
   

4


 

         
   
*
   
   
 
   
   
Thomas C. Gilliland
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Charles E. Hill
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Hoyt O. Holloway
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Clarence W. Mason, Sr.
   
   
Director
   
   
 
   
   
*
   
   
 
   
   
Tim Wallis
   
   
Director
   
   
 
   
*By:  
/s/ Jimmy C. Tallent
   
   
 
   
   
Jimmy C. Tallent
   
   
Attorney-in-fact
   

5


 

EXHIBIT INDEX
     
Exhibit No.   Description
 
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

6