United Community Banks, Inc. announced record earnings for 2001.

By wire reports

Posted 8:18AM on Tuesday, January 22, 2002

United Community Banks, Inc. announced record earnings for 2001. Excluding merger-related charges, 2001 net income rose $6.6 million, or 30%, to $28.3 million from the previous year. Diluted earnings per common share increased $.54, or 26%, to $2.61. Total revenue of $128.4 million increased $20.3 million, or 19%, from 2000. Return on common equity for the year increased to 16.7% from 15.1% in 2000. Return on average assets was 1.10%, compared with .89% in the previous year. For the fourth quarter of 2001, net income excluding merger charges totaled $7.7 million, a 25% increase over last year. Both the years' and quarters' results are prepared on an operating basis that excludes nonrecurring charges related to mergers completed during the fourth quarter of 2001 and the third quarter of 2000. "This year was an outstanding year in all categories of performance," said Jimmy Tallent, president and chief executive officer. "The 19% increase in total revenue was driven by significant improvement in our net interest margin and strong growth in fee revenue. This performance demonstrates that we continue to deliver on our primary financial goal of sustainable double-digit growth in earnings per share." Operating expenses were $83.9 million, up $9.9 million, or 13%, from $74.0 million for 2000. Salaries and employee benefits of $50.0 million were up $7.5 million, or 18%, due to additional staff to support business growth and new services provided to our customers. During the fourth quarter, United's Board of Directors declared a cash dividend of $.10 per share on common stock, representing an increase of 33% over the dividend payment for the same period a year ago. "Looking forward, we believe United is well positioned to achieve earnings growth in the 12% to 15% range for 2002," Tallent said. Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. At December 31, 2001, United had assets of $2.7 billion and operated 49 banking offices located throughout north Georgia, metro Atlanta, and western North Carolina.