United Community Banks Inc. (UCBI, Financial) filed Quarterly Report for the period ended 2009-06-30.
United Community Banks Inc. has a market cap of $366 million; its shares were traded at around $7.49 with and P/S ratio of 0.7. United Community Banks Inc. had an annual average earning growth of 7.9% over the past 5 years.
United reported a net loss of $16.0 million for the second quarter of 2009, which included a non-recurring bargain purchase gain of $11.4 million for the acquisition of SCB. United s net operating loss, which excludes the gain on acquisition, was $23.1 million for the second quarter of 2009. This compared with net income of $7.1 million for the second quarter of 2008. Diluted operating loss per common share was $.53 for the second quarter of 2009, compared with diluted earnings per common share of $.15 for the second quarter of 2008. The gain on acquisition represented $.15 of earnings per share for the second quarter of 2009, reducing the net loss per diluted share to $.38. The second quarter of 2009 operating loss reflects the continuing recessionary economic environment and credit losses primarily resulting from the weak residential construction and housing market.
For the six-month period ended June 30, 2009, United reported a net loss of $119.8 million, including the $11.4 million gain on acquisition, a $70 million charge for goodwill impairment and a $2.9 million charge for a reduction in workforce. United s net operating loss for the first six months of 2009, which excludes the gain on acquisition, goodwill impairment and severance costs, was $55.0 million, compared to net operating income for the first six months of 2008 of $23.2 million. Diluted operating loss per common share was $1.24 for the six months ended June 30, 2009, compared with diluted operating income per common share of $.49 for the same period in 2008. The gain on acquisition, goodwill impairment and severance costs represented $.14 of earnings per share, $1.44 of loss and $.04 of loss, respectively, for the year, bringing the net loss per common share to $2.57.
Fee revenue, excluding the gain from the acquisition of SCB, decreased $2.1 million, or 14%, and $3.4 million, or 12%, from the second quarter and first six months of 2008, respectively. With the exception of mortgage fees, all other fee revenue sources decreased from the respective periods in 2008. Mortgage fees were up $623,000, or 28%, and $1.3 million, or 31% for the quarter and year-to-date, respectively, reflecting higher refinancing activity resulting from the low interest rate environment. In terms of mortgage production, United closed 1,008 loans totaling $168 million in the second quarter of 2009, setting a new company record for the number of loans closed. For the first six months of 2009, 2,004 loans were closed, representing $342 million. The decrease in the other fee revenue categories primarily reflects the weak economy.
United reported a net loss of $16.0 million for the second quarter of 2009, which included a non-recurring gain on the acquisition of SCB of $11.4 million. This compared to net income of $7.1 million for the same period in 2008. The second quarter 2009 diluted loss per share was $.38, which included $.15 in earnings related to the gain on acquisition. This compared to diluted earnings per share of $.15 for the second quarter of 2008.
For the first six months of 2009, United reported a net loss of $119.8 million, which included the $11.4 million gain on acquisition, a non-recurring, non-cash goodwill impairment charge of $70 million and non-recurring severance costs of $2.9 million. Net income for the same period in 2008 was $23.2 million. Diluted loss per share for the six months ended June 30, 2009 was $2.57, of which $.15 in earnings per share was related to the gain on acquisition and $1.44 and $.04 in loss per share were related to the goodwill impairment charge and severance costs, respectively. This compared to diluted earnings per share of $.49 for the first six months of 2008. The net losses in the second quarter and first six months of 2009 reflect a higher provision for loan losses related to the continuing effect of the economic recession and the weak residential construction and housing markets.
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United Community Banks Inc. has a market cap of $366 million; its shares were traded at around $7.49 with and P/S ratio of 0.7. United Community Banks Inc. had an annual average earning growth of 7.9% over the past 5 years.
Highlight of Business Operations:
On June 19, 2009, United Community Bank (“Bank”) acquired the banking operations of Southern Community Bank (“SCB”) from the Federal Deposit Insurance Corporation (“FDIC”). The Bank acquired $378.2 million of assets and assumed $366.8 million of liabilities. The Bank and the FDIC entered loss sharing agreements regarding future losses incurred on loans and foreclosed loan collateral existing at June 19, 2009. Under the terms of the loss sharing agreements, the FDIC will absorb 80 percent of losses and share in 80 percent of loss recoveries on the first $109 million of losses, and absorb 95 percent of losses and share in 95 percent of loss recoveries on losses exceeding $109 million. The term for loss sharing on residential real estate loans is ten years, while the term for loss sharing on all other loans is five years. The SCB acquisition was accounted for under the purchase method of accounting in accordance with the Financial Accounting Standards Board s Statement of Financial Accounting Standards No. 141(R) Business Combinations (“SFAS 141(R)”). United recorded a gain totaling $11.4 million resulting from the acquisition, which is a component of fee revenue on the consolidated statement of income. The amount of the gain is equal to the amount by which the fair value of assets purchased exceeded the fair value of liabilities assumed. See Note 2 of the Notes to unaudited Consolidated Financial Statements for additional information regarding the acquisition.United reported a net loss of $16.0 million for the second quarter of 2009, which included a non-recurring bargain purchase gain of $11.4 million for the acquisition of SCB. United s net operating loss, which excludes the gain on acquisition, was $23.1 million for the second quarter of 2009. This compared with net income of $7.1 million for the second quarter of 2008. Diluted operating loss per common share was $.53 for the second quarter of 2009, compared with diluted earnings per common share of $.15 for the second quarter of 2008. The gain on acquisition represented $.15 of earnings per share for the second quarter of 2009, reducing the net loss per diluted share to $.38. The second quarter of 2009 operating loss reflects the continuing recessionary economic environment and credit losses primarily resulting from the weak residential construction and housing market.
For the six-month period ended June 30, 2009, United reported a net loss of $119.8 million, including the $11.4 million gain on acquisition, a $70 million charge for goodwill impairment and a $2.9 million charge for a reduction in workforce. United s net operating loss for the first six months of 2009, which excludes the gain on acquisition, goodwill impairment and severance costs, was $55.0 million, compared to net operating income for the first six months of 2008 of $23.2 million. Diluted operating loss per common share was $1.24 for the six months ended June 30, 2009, compared with diluted operating income per common share of $.49 for the same period in 2008. The gain on acquisition, goodwill impairment and severance costs represented $.14 of earnings per share, $1.44 of loss and $.04 of loss, respectively, for the year, bringing the net loss per common share to $2.57.
Fee revenue, excluding the gain from the acquisition of SCB, decreased $2.1 million, or 14%, and $3.4 million, or 12%, from the second quarter and first six months of 2008, respectively. With the exception of mortgage fees, all other fee revenue sources decreased from the respective periods in 2008. Mortgage fees were up $623,000, or 28%, and $1.3 million, or 31% for the quarter and year-to-date, respectively, reflecting higher refinancing activity resulting from the low interest rate environment. In terms of mortgage production, United closed 1,008 loans totaling $168 million in the second quarter of 2009, setting a new company record for the number of loans closed. For the first six months of 2009, 2,004 loans were closed, representing $342 million. The decrease in the other fee revenue categories primarily reflects the weak economy.
United reported a net loss of $16.0 million for the second quarter of 2009, which included a non-recurring gain on the acquisition of SCB of $11.4 million. This compared to net income of $7.1 million for the same period in 2008. The second quarter 2009 diluted loss per share was $.38, which included $.15 in earnings related to the gain on acquisition. This compared to diluted earnings per share of $.15 for the second quarter of 2008.
For the first six months of 2009, United reported a net loss of $119.8 million, which included the $11.4 million gain on acquisition, a non-recurring, non-cash goodwill impairment charge of $70 million and non-recurring severance costs of $2.9 million. Net income for the same period in 2008 was $23.2 million. Diluted loss per share for the six months ended June 30, 2009 was $2.57, of which $.15 in earnings per share was related to the gain on acquisition and $1.44 and $.04 in loss per share were related to the goodwill impairment charge and severance costs, respectively. This compared to diluted earnings per share of $.49 for the first six months of 2008. The net losses in the second quarter and first six months of 2009 reflect a higher provision for loan losses related to the continuing effect of the economic recession and the weak residential construction and housing markets.
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