December 08, 2008
United Community Banks Inc. (NASDAQ: UCBI) on Friday sold 180,000 shares of stock for $180 million to the U.S. Department of the Treasury as part of the government's Capital Purchase Program. United received preliminary approval to participate in the program on Nov. 188.
The bank has branches in 108 locations, including Alpharetta, Cumming and Duluth.
The Series B Preferred Stock will qualify as Tier I capital and pay cumulative dividends of 5 percent for the first five years and 9 percent thereafter, unless United redeems the shares. As part of the transaction, the Treasury received a warrant to purchase 2.1 million shares of United's common stock at an exercise price of $12.66 per share.
"Our participation in the U.S. Treasury's Capital Purchase Program further strengthens our already solid capital base and provides us with greater resources and flexibility for supporting our customers and communities in a challenging economic environment," said Jimmy Tallent, president and chief executive officer. "This cost-effective capital will enhance United's ability to lend in our markets and consider strategic opportunities for expanding our franchise."
United's Tier 1 Risk-Based Capital ratio at the end of the third quarter was 8.66 percent, which exceeded the regulatory requirement of 6 percent for a "well-capitalized" institution. With the new capital, this ratio will increase to 11.60 percent. United's Total Risk-Based Capital ratio of 11.40 percent will increase to 14.30 percent, also well in excess of the regulatory requirement of 10 percent for a "well-capitalized" institution.
Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $8.1 billion and operates 27 community banks with 108 banking offices located throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina and east Tennessee. Additional information may be found at the company's Web site at www.ucbi.com.
|
