United Community Banks to participate in capital purchase program

BLAIRSVILLE - United Community Banks Inc. announced Tuesday that the U.S. Treasury Department has given preliminary approval of its $180 million investment in the company and of United's participation in the Capital Purchase Program.

United plans to issue $180 million of senior preferred stock to the Treasury, along with warrants to purchase $27 million in common stock. Final closing of the transaction is expected within 30 days and is contingent upon standard closing documents.

"This investment by the Treasury will further strengthen the company's capital position," said Jimmy Tallent, President and Chief Executive Officer. "United's Tier 1 Risk-Based Capital ratio of 8.66 percent at quarter-end was already well above the regulatory requirements of 6 percent for a 'well-capitalized' institution. With this new capital, United's Tier 1 ratio will increase to 11.60 percent. Also, United's Total Risk-Based Capital ratio of 11.40 percent would improve to 14.30 percent, both well in excess of the regulatory requirement of 10 percent for a 'well-capitalized' institution."

Tallent added, "United was already above the well-capitalized levels, but we have been looking for cost-effective opportunities to add to our capital base. The significant increase in capital will add to an already successful strategy of supporting the growth within our communities through smart, responsible lending to both existing and new customers. It also enables us to consider other strategic opportunities that may arise to expand our franchise."

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.