Newspaper Page Text
4#
Business
& Industry
Bank explains
restatements
By Crystal Ledford
cledford@torsythnews.com
A local bank president
says recently reported
additional income tax
expenses shouldn’t have
any bearing on day-to
day business.
Tim Heard, president of
United Community
Bank’s three Forsyth
branches, said a determi¬
nation by the bank’s cor¬
porate leaders to restate
its financial results for the
2010 fiscal year and first
three quarters of 2011
won’t change business.
“We’re very well capi¬
talized and we have a lot
of liquidity,” he said.
“We’ve won the JD
Powers award for out¬
standing customer service
for the past two years in a
row, so this won’t affect
our banking operations in
the least.”
According to reports
from United Community
Bank’s corporate offices
in Blairsville, the bank
earlier this month "deter¬
mined an additional
income tax expense of
$156.7 million.”
As a result, the report
goes on to state, “the revi¬
sion for the fourth quarter
of 2010 will increase the
previously reported loss
of $16.4 million to
$173.1 million ... and
will increase the previ¬
ously reported net loss for
the full year 2010 of
$345.6 million to $502.3
million.”
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Forsyth County News
Sunday, February 19, 2012
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Wednesday, February 22, 2012
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Sunday, February 26, 2012
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The determination
caused United
Community’s tangible
book value of stock
shares to fall in value
from SI 1.26 per share to
$6.61 per share, accord¬
ing to bank reports.
The stock price has
remained fairly constant,
at around $7, throughout
January.
As a result of the drop
in stock value, the law
firm of Levi Korinsky in
New York is investigating
a potential suit against it
on behalf of stockholders,
according to its Web site.
The Shareholders
Foundation also launched
a probe into the matter.
Craig Metz, executive
vice president of market
i n g for United
Community, said a por¬
tion of the difference in
the net losses stems from
the bank’s problem asset
disposition plan.
“We set out in the first
quarter [of 2011J to pur¬
posefully get some prop¬
erties and foreclosures off
our books,” he said.
The other part of the
difference comes from
tax practices. Under IRS
rules, Metz said, busi¬
nesses can carry forward
loses against future gains.
In a statement, United
Community Bank
President and CEO
Jimmy Tallent called the
accounting treatment for
deferred tax assets “com¬
plex and requires a great
deal of judgment.”
STOCK MARKET UPDATE
MARKET IN BRIEF At the close of Jan. 27, 2012
DOW S&P 500 NASDAQ
-74.17 Close: - 2.10 Close: +11.27 Close:
12,660.46 1,316.33 2,816.55
STOCKS OF LOCAL INTEREST
Sign Stock Last Change
DELL Dell Computer 16.74 +0.05
DAL Delta Air Lines 10.39 + 0.22
F AGL Resources 12.21 -0.53
GAS Ford Motor Co. 41.91 -0.37
HD Home Depot 44.87 -0.08
INTC Intel Corp. 26.73 -0.02
KO Coca-Cola Co. 67.44 -0.57
MCD McDonald's Corp. 98.69 -0.49
“While we continue to
believe it is likely that we
will realize all of our net
deferred tax assets many
years prior to their expi
ration, the [U.S.
Securities and Exchange
Commission] questioned
the weighting of negative
and positive factors
affecting our ability to
accurately project our
long-term taxable earn
ings,” he said. “By taking
these actions, we have
now resolved the SEC’s
concern
Metz described the sys¬
tem as being similar to
the bank having “a sav¬
ings account,” although
not involving literal
money, with SEC control.
“It’s like we’ve got a
saving account, but the
SEC says we can’t use it
until we reach a certain
level of profitability, but
they never tell us how
much or how long,” he
said
“They want exactly the
same thing we want, for
us to be making enough
money.
He said the process
involves the ways funds
are kept on paper.
“We’re carrying for
ward our loses from 2010
and 2011 again i our
future gains,” he said,
“The only thing that
changed is how we
accounted for it and how
the SEC wants us to put it
in our books."
Like Heard, Metz said
the issue won’t have any
bearing on the average
United Community cus
tomer.
“This doesn't have any
impact on them," he said,
“All of our funds are
insured by the FD1C.”
On Thursday, the bank
announced its income
earnings for fourth quar¬
ter 2011.
A release stated a net
income of $9.9 million,
or 12 cents per share, for
that time period.
The report also showed
a 2011 net loss of $227
million, but core transae
tion deposits up by $266
million,
“United is moving for
ward with a sound bal
ance sheet and strong
capital structure,” said
Tallent in a statement,
“This is beginning to be
demonstrated in our
financial results including
the fourth quarter profit.
“We believe the
remaining credit chal
lenges are manageable
and while we are not
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Forsyth CountyVws 302 Veterans Cumming, Memorial GA 30040 Blvd.
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SUNDAY, JANUARY 29,2012
Sign Stock Last Change
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PEP PepsiCo Inc. 65.81 -0.71
RF Regions Financial 5.31 +0.14
SGMS Scientific Games 11.75 +0.33
SO Southern Co. 45.02 -0.30
T AT&T 29.16 -0.29
TSN Tyson Foods 18.80 - 0.10
UPS United Parcel Service 76.04 + 0.20
WMT Wal-Mart Stores Inc. 60.71 -0.26
invulnerable to the still
fragile economy, our
expectation is continued
profitability during
2012 .”
United Community
Bank has 106 offices
throughout Georgia,
North Carolina and
Tennessee.
Among them are three
in Forsyth: 1015 Buford
Hwy.; 4365 Browns
Bridge Road; and 5125
Atlanta Hwy.
EATERY SUPPORTS RED CROSS
.4
I h*» -
Jim Dean Forsyth County News
Bill Norman and Jenny Thomas, right, with
Norman's Landing restaurant present a check for
more than $1,400 to Andy Thompson, center,
with the American Red Cross. The money was
raised by the eatery during ping-pong tourna¬
ments.
In July, the Forsyth
C o u n t y c o m m i s s i o n
voted to award the coun¬
ty’s banking services to
United Community.
The vote was 2-1 with
Commissioners Brian
Tam and Pete Amos in
favor of move and Jim
Boff opposed.
Commissioner Patrick
Bell recused himself
from the vote and Todd
Levcnt was absent from
that meeting.