SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 25, 2006

United Community Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia		No. 0-21656		No. 58-180-7304
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

63 Highway 515, P.O. Box 398
Blairsville, Georgia 30512
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(706) 781-2265

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

 

 

Item 2.02		Results of Operation and Financial Condition

On July 25, 2006, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the second quarter ended June 30, 2006 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this report. In connection with issuing the News Release, on July 25, 2006 at 11:00 a.m. EST, the Registrant intends to hold a conference call/webcast to discuss the News Release.

Item 9.01		Financial Statements and Exhibits

	(a)		Financial statements: None
	(b)		Pro forma financial information: None
	(c)		Exhibits:

99.1

Press Release, dated July 25, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		/s/ Rex S. Schuette
		Rex S. Schuette
		Executive Vice President and
July 25, 2006		Chief Financial Officer

EXHIBIT 99.1

For Immediate Release

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2265
Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS
17% GAIN IN DILUTED EARNINGS PER SHARE
FOR SECOND QUARTER 2006

HIGHLIGHTS:

•

Record Second Quarter Earnings

Diluted Earnings per Share of $.41 — Up 17% Net Income of $17 Million — Up 23% Return on Tangible Equity of 17.68% Total Assets Rise to $6.3 Billion

•

Strong Loan Demand and Rise in Net Interest Margin Drove Performance

BLAIRSVILLE, GA, July 25, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third-largest bank holding company, today announced record financial results for the second quarter of 2006. Compared with the second quarter of 2005, the company achieved a 16% increase in total revenue, a 23% rise in net income and a 17% gain in diluted earnings per share.

For the second quarter of 2006, net income was $16.9 million compared with $13.8 million a year earlier. Diluted earnings per share increased to $.41 from $.35 a year ago. Total revenue, on a taxable equivalent basis, was $70.6 million compared with $60.6 million for the second quarter of 2005. Return on tangible equity was 17.68% and return on assets was 1.10%, compared with 19.21% and 1.03%, respectively, a year ago.

“Strong demand for loans and deposits continued across all markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “Loans increased $226 million during the second quarter, or 20% on an annualized basis, and helped drive the increase in net interest revenue. We more than funded our loan growth by adding $228 million of deposits this quarter — more than half were core deposits. The strong loan growth pushed total assets to $6.3 billion, a 14% increase from a year ago. Our net interest margin was 4.34%, up 22 basis points from a year ago and up 1 basis point from last quarter, as rising short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet.”

For the first six months of 2006, net income increased $5.8 million to $33.0 million, up 21% from $27.2 million for the first half of 2005. Diluted earnings per share of $.80 increased $.11, or 16%, from $.69 for the first six months of 2005. Total revenue, on a taxable equivalent basis, was $138.6 million, up 19% from $116.7 million a year ago. Return on tangible equity was 17.67% and return on assets was 1.10%, compared with 19.52% and 1.04%, respectively, a year ago.

At June 30, 2006, total loans were $4.8 billion, up $737 million, or 18%, from a year ago. All of the loan growth was organic. “Organic growth, with an uncompromising focus on sound credit quality, is at the core of our balanced growth strategy and is further supported by our focused de novo expansion,” Tallent said. “We find the right people and build around them, usually adding two to four new offices a year. The most recent example of this strategy was the announcement yesterday that we will open our 25th community bank in Cleveland, Tennessee, along the high-growth I-75 corridor. Led by veteran Cleveland bankers Mickey Torbett and DeWayne Morrow, our new bank downtown will begin full-service operations as United Community Bank — Cleveland later this month with a total of ten seasoned, local bankers. I am excited to welcome this fine team to our family of United banks and look forward to their growth opportunities in this attractive market.”

Tallent continued, “De novo expansion will continue to allow us to open offices in selective new markets and expand our franchise. Earlier in the year, we opened three offices in Georgia — a

second location in Savannah, a fifth location in Hall County, and a commercial loan office in Jasper, just north of Atlanta in Pickens County. Earlier this quarter, we announced an agreement to acquire two banking offices in Sylva and Bryson City, North Carolina and we expect the transaction to close in September. Both of these offices are in markets where we already have a presence and a deep knowledge of the banking environment.”

“The highest level of customer service continues to be our distinguishing characteristic,” Tallent said. “Our relentless focus on service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of 75%. This personal, caring brand of service is invaluable in building deposits through customer referrals while also maintaining and growing our long-term relationships with existing customers.”

For the second quarter, taxable equivalent net interest revenue of $62.3 million was up $11.1 million, or 22%, from the second quarter of 2005. Taxable equivalent net interest margin for the second quarter was 4.34%, compared with 4.12% a year ago and 4.33% for the first quarter of 2006. “Our balance sheet has remained slightly asset sensitive, which allowed us to benefit from the rise in interest rates as reflected in the expansion of our margin throughout 2005 and into the first half of 2006,” Tallent said.

The second quarter provision for loan losses was $3.7 million, which increased $900,000 from a year earlier and $200,000 from the first quarter of 2006. Annualized net charge-offs to average loans were 9 basis points for the second quarter, compared with 11 basis points for the first quarter of 2006 and 14 basis points for the second quarter of 2005. At quarter-end, non-performing assets totaled $8.8 million compared with $8.4 million at the end of the first quarter of 2006 and $13.5 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the first quarter of 2006 and down from the 24 basis points at June 30, 2005. “Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success,”
Tallent said.

Fee revenue of $12.0 million was down slightly from $12.2 million for the second quarter of 2005, primarily due to $530,000 in gains from the sale of two banking offices in the second quarter of 2005. Also impacting fee revenue this quarter was $280,000 in charges for the prepayment of Federal Home Loan Bank advances that were part of our balance sheet management activities. Service charges and fees on deposit accounts increased $548,000 to $6.8 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Mortgage fees, consulting fees and brokerage fees remain substantially unchanged from a year ago.

Operating expenses of $43.5 million increased $4.7 million, or 12%, from the second quarter of 2005. Salaries and employee benefit costs of $28.3 million increased $3.0 million, or 12%, from the second quarter of 2005 due to the increase in staff to support our significant expansion efforts and business growth. Communications and equipment expenses increased $616,000 to $3.7 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Advertising and public relations expense rose $249,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in new markets. Occupancy expense increased $198,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. The increase in other operating expense was primarily due to write-downs on foreclosed real estate properties and higher costs to support business growth.

“We had a positive operating leverage of four percent this quarter,” Tallent said. “Also, our operating efficiency ratio of 58.53% was within our long-term efficiency goal of 58% to 60%. This reflects the continued strength of our existing franchise, strong revenue growth and disciplined expense controls, which more than offset the cost of reinvesting for the future through our de novo expansion efforts,” Tallent said.

“Our outlook for the balance of 2006 is for earnings per share growth at the upper-end of our long-term goal of 12% to 15%,” Tallent said. “We anticipate core loan growth to be slightly above our targeted range of 10% to 14%. Our net interest margin has benefited from rising short-term interest rates; however, we expect the margin could decline slightly in the second half of

2006, due to further pricing competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality.”

“Our results for the first half of 2006 are leading towards another year of strong growth and superior operating performance,” Tallent stated. “We are committed to excellent customer service while maintaining solid credit quality as we continue our efforts to build shareholder value through our balanced growth strategy of strong internal growth, complemented by selective de novo and merger expansion.”

Conference Call

United Community Banks will hold a conference call on Tuesday, July 25, 2006, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for the remainder of 2006. The telephone number for the conference call is (866) 700-7441 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $6.3 billion and operates 25 community banks with 94 banking offices located throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company’s web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance

involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” on page 4 of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission.

(Tables Follow)

UNITED COMMUNITY BANKS, INC.
Selected Financial Information

																						Second
		2006								2005												Quarter				For the Six								YTD
(in thousands, except per share		Second				First				Fourth				Third				Second				2006-2005				Months Ended								2006-2005
data; taxable equivalent)		Quarter				Quarter				Quarter				Quarter				Quarter				Change				2006				2005				Change
INCOME SUMMARY
Interest revenue		$	111,728			$	102,797			$	95,465			$	89,003			$	80,701							$	214,525			$	154,350
Interest expense			49,407				43,065				38,576				34,033				29,450								92,472				54,817
Net interest revenue			62,321				59,732				56,889				54,970				51,251				22	%			122,053				99,533				23	%
Provision for loan losses			3,700				3,500				3,500				3,400				2,800								7,200				5,200
Fee revenue			11,976				11,758				11,373				12,396				12,179				(2	)			23,734				22,379				6
Total revenue			70,597				67,990				64,762				63,966				60,630				16				138,587				116,712				19
Operating expenses			43,483				42,222				40,520				41,294				38,808				12				85,705				73,587				16
Income before taxes			27,114				25,768				24,242				22,672				21,822				24				52,882				43,125				23
Income taxes			10,185				9,729				9,012				8,374				8,049								19,914				15,911
Net income		$	16,929			$	16,039			$	15,230			$	14,298			$	13,773				23			$	32,968			$	27,214				21
PERFORMANCE MEASURES
Per common share:
Basic earnings		$	.42			$	.40			$	.39			$	.37			$	.36				17			$	.82			$	.71				15
Diluted earnings			.41				.39				.38				.36				.35				17				.80				.69				16
Cash dividends declared			.08				.08				.07				.07				.07				14				.16				.14				14
Book value			12.34				12.09				11.80				11.04				10.86				14				12.34				10.86				14
Tangible book value (2)			9.50				9.25				8.94				8.05				7.85				21				9.50				7.85				21
Key performance ratios:
Return on tangible equity (1)(2)(3)			17.68	%			17.66	%			18.20	%			18.90	%			19.21	%							17.67	%			19.52	%
Return on equity (1)(3)			13.41				13.25				13.30				13.42				13.46								13.33				13.57
Return on assets (3)			1.10				1.09				1.05				1.01				1.03								1.10				1.04
Net interest margin (3)			4.34				4.33				4.20				4.17				4.12								4.34				4.09
Efficiency ratio			58.53				59.06				58.80				61.16				61.18								58.79				60.36
Dividend payout ratio			19.05				20.00				17.95				18.92				19.44								19.51				19.72
Equity to assets			7.95				8.04				7.69				7.46				7.65								7.99				7.68
Tangible equity to assets (2)			6.22				6.24				5.82				5.53				5.62								6.23				5.60
ASSET QUALITY
Allowance for loan losses		$	58,508			$	55,850			$	53,595			$	51,888			$	49,873							$	58,508			$	49,873
Non-performing assets			8,805				8,367				12,995				13,565				13,495								8,805				13,495
Net charge-offs			1,042				1,245				1,793				1,385				1,380								2,287				2,523
Allowance for loan losses to loans			1.22	%			1.22	%			1.22	%			1.22	%			1.22	%							1.22	%			1.22	%
Non-performing assets to total assets			.14				.14				.22				.24				.24								.14				.24
Net charge-offs to average loans (3)			.09				.11				.16				.13				.14								.10				.13
AVERAGE BALANCES
Loans		$	4,690,196			$	4,505,494			$	4,328,613			$	4,169,170			$	3,942,077				19			$	4,598,355			$	3,870,177				19
Investment securities			1,039,707				1,038,683				1,004,966				1,008,687				996,096				4				1,039,198				971,283				7
Earning assets			5,758,697				5,574,712				5,383,096				5,239,195				4,986,339				15				5,667,213				4,903,610				16
Total assets			6,159,152				5,960,801				5,769,632				5,608,158				5,338,398				15				6,060,526				5,251,913				15
Deposits			4,842,389				4,613,810				4,354,275				4,078,437				3,853,884				26				4,728,731				3,786,276				25
Stockholders’ equity			489,821				478,960				443,746				418,459				408,352				20				484,420				403,286				20
Common shares outstanding:
Basic			40,156				40,088				39,084				38,345				38,270								40,122				38,234
Diluted			41,328				41,190				40,379				39,670				39,436								41,259				39,412
AT PERIOD END
Loans		$	4,810,277			$	4,584,155			$	4,398,286			$	4,254,051			$	4,072,811				18			$	4,810,277			$	4,072,811				18
Investment securities			974,524				983,846				990,687				945,922				990,500				(2	)			974,524				990,500				(2	)
Earning assets			5,862,614				5,633,381				5,470,718				5,302,532				5,161,067				14				5,862,614				5,161,067				14
Total assets			6,331,136				6,070,596				5,865,756				5,709,666				5,540,242				14				6,331,136				5,540,242				14
Deposits			4,976,650				4,748,438				4,477,600				4,196,369				3,959,226				26				4,976,650				3,959,226				26
Stockholders’ equity			496,297				485,414				472,686				424,000				415,994				19				496,297				415,994				19
Common shares outstanding			40,179				40,119				40,020				38,383				38,283								40,179				38,283

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(in thousands, except per share data)		2006				2005				2006				2005
Interest revenue:
Loans, including fees		$	99,080			$	69,446			$	189,445			$	132,913
Investment securities:
Taxable			11,521				10,190				22,839				19,204
Tax exempt			509				528				1,023				1,053
Federal funds sold and deposits in banks			162				150				320				409
Total interest revenue			111,272				80,314				213,627				153,579
Interest expense:
Deposits:
Demand			8,956				4,379				16,143				7,906
Savings			226				174				454				342
Time			29,599				15,019				54,985				28,027
Total deposit interest expense			38,781				19,572				71,582				36,275
Federal funds purchased, repurchase agreements, & other short-term borrowings			2,078				1,121				3,554				2,006
Federal Home Loan Bank advances			6,380				6,565				13,009				12,222
Long-term debt			2,168				2,192				4,327				4,314
Total interest expense			49,407				29,450				92,472				54,817
Net interest revenue			61,865				50,864				121,155				98,762
Provision for loan losses			3,700				2,800				7,200				5,200
Net interest revenue after provision for loan losses			58,165				48,064				113,955				93,562
Fee revenue:
Service charges and fees			6,828				6,280				13,181				11,894
Mortgage loan and other related fees			1,708				1,742				3,221				3,225
Consulting fees			1,572				1,685				3,156				3,167
Brokerage fees			796				768				1,646				1,210
Securities losses, net			—				(2	)			(3	)			(2	)
Other			1,072				1,706				2,533				2,885
Total fee revenue			11,976				12,179				23,734				22,379
Total revenue			70,141				60,243				137,689				115,941
Operating expenses:
Salaries and employee benefits			28,307				25,274				55,950				47,509
Communications and equipment			3,731				3,115				7,107				6,097
Occupancy			2,916				2,718				5,848				5,386
Advertising and public relations			1,948				1,699				3,836				3,062
Postage, printing and supplies			1,289				1,369				2,805				2,720
Professional fees			1,069				1,071				2,230				2,109
Amortization of intangibles			503				503				1,006				1,006
Other			3,720				3,059				6,923				5,698
Total operating expenses			43,483				38,808				85,705				73,587
Income before income taxes			26,658				21,435				51,984				42,354
Income taxes			9,729				7,662				19,016				15,140
Net income		$	16,929			$	13,773			$	32,968			$	27,214
Net income available to common stockholders		$	16,924			$	13,767			$	32,958			$	27,201
Earnings per common share:
Basic		$	.42			$	.36			$	.82			$	.71
Diluted			.41				.35				.80				.69
Weighted average common shares outstanding:
Basic			40,156				38,270				40,122				38,234
Diluted			41,328				39,436				41,259				39,412

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet

		June 30,				December 31,				June 30,
(in thousands, except share and per share data)		2006				2005				2005
		(unaudited)				(audited)				(unaudited)
ASSETS
Cash and due from banks		$	159,954			$	121,963			$	117,478
Interest-bearing deposits in banks			21,948				20,607				17,451
Cash and cash equivalents			181,902				142,570				134,929
Securities available for sale			974,524				990,687				990,500
Mortgage loans held for sale			24,000				22,335				34,095
Loans, net of unearned income			4,810,277				4,398,286				4,072,811
Less allowance for loan losses			58,508				53,595				49,873
Loans, net			4,751,769				4,344,691				4,022,938
Premises and equipment, net			124,018				112,887				105,469
Accrued interest receivable			44,187				37,197				31,909
Goodwill and other intangible assets			117,646				118,651				119,617
Other assets			113,090				96,738				100,785
Total assets		$	6,331,136			$	5,865,756			$	5,540,242
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand		$	662,463			$	602,525			$	590,306
Interest-bearing demand			1,305,479				1,264,947				1,141,115
Savings			173,985				175,453				177,822
Time:
Less than $100,000			1,388,009				1,218,277				1,041,680
Greater than $100,000			1,106,359				895,466				696,941
Brokered			340,355				320,932				311,362
Total deposits			4,976,650				4,477,600				3,959,226
Federal funds purchased, repurchase agreements, & other short-term borrowings			249,552				122,881				219,218
Federal Home Loan Bank advances			458,587				635,616				800,316
Long-term debt			111,869				111,869				111,869
Accrued expenses and other liabilities			38,181				45,104				33,619
Total liabilities			5,834,839				5,393,070				5,124,248
Shareholders’ equity:
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200, 32,200 and 37,200 shares issued and outstanding			322				322				372
Common stock, $1 par value; 100,000,000 shares authorized; 40,178,533, 40,019,853 and 38,407,874 shares issued			40,179				40,020				38,408
Common stock issuable; 19,712 and 9,948 shares as of June 30, 2006 and December 31, 2005, respectively			544				271				—
Capital surplus			197,235				193,355				154,480
Retained earnings			277,086				250,563				226,546
Treasury stock; 124,665 shares as of June 30, 2005, at cost			—				—				(2,517	)
Accumulated other comprehensive loss			(19,069	)			(11,845	)			(1,295	)
Total shareholders’ equity			496,297				472,686				415,994
Total liabilities and shareholders’ equity		$	6,331,136			$	5,865,756			$	5,540,242

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,

		2006												2005
		Average								Avg.				Average								Avg.
(dollars in thousands, taxable equivalent)		Balance				Interest				Rate				Balance				Interest				Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)		$	4,690,196			$	98,965				8.46	%		$	3,942,077			$	69,130				7.03	%
Taxable securities (3)			991,701				11,521				4.65				946,543				10,190				4.31
Tax-exempt securities (1) (3)			48,006				837				6.98				49,553				869				7.01
Federal funds sold and other interest-earning assets			28,794				405				5.63				48,166				512				4.25
Total interest-earning assets			5,758,697				111,728				7.78				4,986,339				80,701				6.49
Non-interest-earning assets:
Allowance for loan losses			(57,654	)											(49,576	)
Cash and due from banks			129,389												94,488
Premises and equipment			120,870												103,439
Other assets (3)			207,850												203,708
Total assets		$	6,159,152											$	5,338,398
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts		$	1,282,798				8,956				2.80			$	1,109,861				4,379				1.58
Savings deposits			174,533				226				.52				176,624				174				.40
Time deposits less than $100,000			1,344,861				14,066				4.20				1,025,236				7,307				2.86
Time deposits greater than $100,000			1,061,249				12,147				4.59				661,214				5,515				3.35
Brokered deposits			327,962				3,386				4.14				311,933				2,197				2.83
Total interest-bearing deposits			4,191,403				38,781				3.71				3,284,868				19,572				2.39
Federal funds purchased & other borrowings			165,563				2,078				5.03				149,438				1,121				3.01
Federal Home Loan Bank advances			506,531				6,380				5.05				785,523				6,565				3.35
Long-term debt			111,869				2,168				7.77				111,868				2,192				7.86
Total borrowed funds			783,963				10,626				5.44				1,046,829				9,878				3.78
Total interest-bearing liabilities			4,975,366				49,407				3.98				4,331,697				29,450				2.73
Non-interest-bearing liabilities:
Non-interest-bearing deposits			650,986												569,016
Other liabilities			42,979												29,333
Total liabilities			5,669,331												4,930,046
Stockholders’ equity			489,821												408,352
Total liabilities and stockholders’ equity		$	6,159,152											$	5,338,398
Net interest revenue						$	62,321											$	51,251
Net interest-rate spread											3.80	%											3.76	%
Net interest margin (4)											4.34	%											4.12	%

Average Consolidated Balance Sheets and Net Interest Analysis (continued)
For the Six Months Ended June 30,

		2006												2005
		Average								Avg.				Average								Avg.
(dollars in thousands, taxable equivalent)		Balance				Interest				Rate				Balance				Interest				Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)		$	4,598,355			$	189,219				8.30	%		$	3,870,177			$	132,266				6.89	%
Taxable securities (3)			990,698				22,839				4.61				921,564				19,204				4.17
Tax-exempt securities (1) (3)			48,500				1,683				6.94				49,719				1,733				6.97
Federal funds sold and other interest-earning assets			29,660				784				5.29				62,150				1,147				3.69
Total interest-earning assets			5,667,213				214,525				7.63				4,903,610				154,350				6.34
Non-interest-earning assets:
Allowance for loan losses			(56,247	)											(48,869	)
Cash and due from banks			125,957												93,446
Premises and equipment			118,245												102,927
Other assets (3)			205,358												200,799
Total assets		$	6,060,526											$	5,251,913
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts		$	1,264,373			$	16,143				2.57			$	1,092,181			$	7,906				1.46
Savings deposits			175,161				454				.52				175,033				342				.39
Time deposits less than $100,000			1,307,676				26,101				4.03				1,010,395				13,769				2.75
Time deposits greater than $100,000			1,020,682				22,556				4.46				626,918				9,884				3.18
Brokered deposits			321,562				6,328				3.97				329,396				4,374				2.68
Total interest-bearing deposits			4,089,454				71,582				3.53				3,233,923				36,275				2.26
Federal funds purchased & other borrowings			147,185				3,554				4.87				144,533				2,006				2.80
Federal Home Loan Bank advances			546,405				13,009				4.80				778,160				12,222				3.17
Long-term debt			111,868				4,327				7.80				111,868				4,314				7.78
Total borrowed funds			805,458				20,890				5.23				1,034,561				18,542				3.61
Total interest-bearing liabilities			4,894,912				92,472				3.81				4,268,484				54,817				2.59
Non-interest-bearing liabilities:
Non-interest-bearing deposits			639,276												552,354
Other liabilities			41,918												27,789
Total liabilities			5,576,106												4,848,627
Stockholders’ equity			484,420												403,286
Total liabilities and stockholders’ equity		$	6,060,526											$	5,251,913
Net interest revenue						$	122,053											$	99,533
Net interest-rate spread											3.82	%											3.75	%
Net interest margin (4)											4.34	%											4.09	%