United Community Banks, Inc.
Jan 21, 2015

United Community Banks, Inc. Reports Net Income of $18.2 Million for Fourth Quarter 2014, Up 15 Percent From a Year Ago

BLAIRSVILLE, Ga., Jan. 21, 2015 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (Nasdaq:UCBI) ("United") today reported net income of $18.2 million, or 30 cents per diluted share, for the fourth quarter of 2014. Earnings per share were up 36 percent from a year ago. The increases reflect strong loan growth, a stable net interest margin and growth in fee revenue.

For the full year of 2014, United reported net income of $67.6 million, or $1.11 per diluted share.

"Our fourth quarter results mark a strong ending to a very good year," said Jimmy Tallent, president and chief executive officer. "Strong loan growth and a steady net interest margin increased net interest revenue by $1.37 million over the third quarter. Our return on assets rose to 96 basis points, one basis point above the third quarter and closing in on our goal of 1 percent. Also, our return on equity was 9.6 percent, up 19 basis points from the third quarter and 208 basis points from a year ago. We continue to improve operating efficiency, and achieved solid positive operating leverage in the fourth quarter."

Tallent continued, "Fourth quarter net loan growth of $103 million was driven by solid production across all of our markets. Our specialized lending business, which includes health care, corporate, SBA, asset-based and commercial real estate lending, was the largest contributor to our growth this quarter with $74.6 million. We also saw solid growth in our Coastal Georgia market."

Fourth quarter taxable equivalent net interest revenue totaled $58.3 million, up $1.37 million from the third quarter and up $2.45 million from the fourth quarter of 2013. The taxable equivalent net interest margin was 3.31 percent, down one basis point from the third quarter but up five basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue, while minimizing exposure to changes in interest rates, have been top priorities for growing earnings," said Tallent. "We've been able to hold the margin steady in the low 3.30 percent range following our second quarter balance sheet management activities, which included restructuring the securities portfolio, interest rate hedges and wholesale borrowings. We expect our margin to remain at the current level into 2015."

The fourth quarter provision for credit losses was $1.8 million, down $200,000 from the third quarter and down $1.2 million from the fourth quarter of 2013. Fourth quarter net charge-offs were $2.51 million compared with $3.16 million in the third quarter and $4.45 million a year ago. Nonperforming assets at quarter-end were $19.6 million, down 10 percent from the third quarter and 37 percent from a year ago. Nonperforming assets at quarter-end represented .26 percent of total assets, compared to .29 percent last quarter and .42 percent a year ago.

Fourth quarter fee revenue totaled $14.8 million, up $411,000 from the third quarter and $1.30 million from the fourth quarter of 2013. The increase from a year ago resulted primarily from the growing SBA lending business and related gains on sales of SBA loans. Gains totaled $926,000 in the fourth quarter of 2014, and $945,000 in the third quarter. There were no gains from SBA loan sales in the fourth quarter of 2013.

Service charges and fees, and debit card interchange fees, were up from both the third quarter of 2014 and the fourth quarter of 2013, more than offsetting a decline in overdraft fees. Mortgage fees were down $67,000 from the third quarter, but up $398,000 from a year ago. The increase from the fourth quarter of 2013 reflects United's commitment to growing the mortgage business. Closed mortgage loans totaled $77.4 million in the fourth quarter compared with $84.2 million in the third quarter and $55.5 million in the fourth quarter of 2013.

Operating expenses were $41.9 million in the fourth quarter compared to $41.4 million in the third quarter and $41.6 million a year ago. The increase was mostly due to higher salaries and employee benefit costs for the respective periods of $900,000 and $1.8 million, respectively, reflecting investments in new businesses and markets, as well as higher production and performance incentives and $350,000 in severance costs for the fourth quarter 2014.

Other expense was up $1.3 million from the third quarter and $1.2 million from a year ago. The increase reflects a $492,000 charge for the reimbursement of claimed interest related to the first period of the company's loss sharing agreement with the FDIC, as well as higher support costs associated with the increase in lending activity. Professional fees were lower this quarter due to the resolution and release of a $1.2 million litigation reserve related to a previously disclosed legal matter and FDIC assessment costs declined due to further improvement in credit measures. There were several non-core items in the quarter that were mostly offsetting, including the litigation reserve release, FDIC reimbursement of prior period interest and severance costs.

"Our focus on growing revenue while controlling costs is driving the improvement in operating efficiency and positive operating leverage," Tallent said. "Our operating efficiency ratio improved to 57.5 percent in the fourth quarter, compared to 58.0 percent in the third quarter."

At December 31, 2014, capital ratios were as follows: Tier 1 Risk-Based of 12.1 percent; Total Risk-Based of 13.3 percent; Tier 1 Common Risk-Based of 11.1 percent; and, Tier 1 Leverage of 8.7 percent.

"In 2014 we invested significantly in revenue generation while controlling operating costs," Tallent said. "I am excited about 2015 as these investments hit their stride to grow our businesses that will drive earnings and shareholder returns. As always, we will continue to look for opportunities to invest in people."

Conference Call

United will hold a conference call today, Thursday, January 21, 2015, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 61257382. The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.

United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.6 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2013 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors." Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

             
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
            Fourth
  2014 2013 Quarter
(in thousands, except per share  Fourth   Third   Second   First   Fourth  2014-2013
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter Change
INCOME SUMMARY            
Interest revenue  $ 64,353  $ 63,338  $ 61,783  $ 60,495  $ 61,695  
Interest expense  6,021  6,371  6,833  6,326  5,816  
Net interest revenue  58,332  56,967  54,950  54,169  55,879  4% 
Provision for credit losses  1,800  2,000  2,200  2,500  3,000  
Fee revenue  14,823  14,412  14,143  12,176  13,519  10
Total revenue  71,355  69,379  66,893  63,845  66,398  
Operating expenses  41,919  41,364  40,532  39,050  41,614  1
Income before income taxes  29,436  28,015  26,361  24,795  24,784  19
Income tax expense (benefit)  11,189  10,399  10,004  9,395  8,873  
Net income  18,247  17,616  16,357  15,400  15,911  15
Preferred dividends and discount accretion  --   --   --   439  2,912  
Net income available to common shareholders  $ 18,247  $ 17,616  $ 16,357  $ 14,961  $ 12,999  40
             
PERFORMANCE MEASURES            
Per common share:            
Diluted income  $ .30  $ .29  $ .27  $ .25  $ .22  36
Book value  12.20  12.15  11.94  11.66  11.30  8
Tangible book value (2)  12.15  12.10  11.91  11.63  11.26  8
             
Key performance ratios:            
Return on common equity (1)(3)  9.60%  9.41%  8.99%  8.64%  7.52%  
Return on assets (3)  .96  .95  .88  .85  .86  
Net interest margin (3)  3.31  3.32  3.21  3.21  3.26  
Efficiency ratio  57.47  57.96  58.65  59.05  60.02  
Average equity to average assets 9.76 9.85 9.61 9.52 11.62  
Average tangible equity to average assets (2) 9.72 9.83 9.58 9.50 11.59  
Average tangible common equity to average assets (2) 9.72 9.83 9.58 9.22 8.99  
Tangible common equity to risk--weighted assets (2) 13.82 14.10 13.92 13.63 13.18  
             
ASSET QUALITY *            
Non-performing loans  $ 17,881  $ 18,745  $ 20,724  $ 25,250  $ 26,819  
Foreclosed properties  1,726  3,146  2,969  5,594  4,221  
Total non-performing assets (NPAs)  19,607  21,891  23,693  30,844  31,040  
Allowance for loan losses  71,619  71,928  73,248  75,223  76,762  
Net charge-offs  2,509  3,155  4,175  4,039  4,445  
Allowance for loan losses to loans 1.53% 1.57% 1.66% 1.73% 1.77%  
Net charge-offs to average loans (3)  .22  .28  .38  .38  .41  
NPAs to loans and foreclosed properties  .42  .48  .54  .71  .72  
NPAs to total assets  .26  .29  .32  .42  .42  
             
AVERAGE BALANCES ($ in millions)            
Loans  $ 4,621  $ 4,446  $ 4,376  $ 4,356  $ 4,315  7
Investment securities  2,222  2,231  2,326  2,320  2,280  (3)
Earning assets  7,013  6,820  6,861  6,827  6,823  3
Total assets  7,565  7,374  7,418  7,384  7,370  3
Deposits  6,383  6,143  6,187  6,197  6,190  3
Shareholders' equity  738  726  713  703  856  (14)
Common shares - basic (thousands)  60,830  60,776  60,712  60,059  59,923  
Common shares - diluted (thousands)  60,833  60,779  60,714  60,061  59,925  
             
AT PERIOD END ($ in millions)            
Loans *  $ 4,672  $ 4,569  $ 4,410  $ 4,356  $ 4,329  8
Investment securities  2,198  2,222  2,190  2,302  2,312  (5)
Total assets  7,567  7,526  7,352  7,398  7,425  2
Deposits  6,327  6,241  6,164  6,248  6,202  2
Shareholders' equity  740  736  722  704  796  (7)
Common shares outstanding (thousands)  60,259  60,248  60,139  60,092  59,432  
             
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
             
       
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
  For the Twelve  
  Months Ended YTD
(in thousands, except per share December 31, 2014-2013
data; taxable equivalent) 2014 2013 Change
INCOME SUMMARY      
Interest revenue  $ 249,969  $ 247,323  
Interest expense  25,551  27,682  
Net interest revenue  224,418  219,641  2% 
Provision for credit losses  8,500  65,500  
Fee revenue  55,554  56,598  (2)
Total revenue  271,472  210,739  
Operating expenses  162,865  174,304  (7)
Income before income taxes  108,607  36,435  
Income tax expense (benefit)  40,987  (236,705)  
Net income  67,620  273,140  
Preferred dividends and discount accretion  439  12,078  
Net income available to common shareholders  $ 67,181  $ 261,062  
       
PERFORMANCE MEASURES      
Per common share:      
Diluted income  $ 1.11  $ 4.44  
Book value  12.20  11.30  8
Tangible book value (2)  12.15  11.26  8
       
Key performance ratios:      
Return on common equity (1)(3)  9.17%   46.72%   
Return on assets (3)  .91  3.86  
Net interest margin (3)  3.26  3.30  
Efficiency ratio  58.26  63.14  
Average equity to average assets 9.69 10.35  
Average tangible equity to average assets (2) 9.67 10.31  
Average tangible common equity to average assets (2) 9.60 7.55  
Tangible common equity to risk-weighted assets (2) 13.82 13.17  
       
ASSET QUALITY *      
Non-performing loans  $ 17,881  $ 26,819  
Foreclosed properties  1,726  4,221  
Total non-performing assets (NPAs)  19,607  31,040  
Allowance for loan losses  71,619  76,762  
Net charge-offs  13,878  93,710  
Allowance for loan losses to loans 1.53% 1.77%  
Net charge-offs to average loans (3)  .31  2.22  
NPAs to loans and foreclosed properties  .42  .72  
NPAs to total assets  .26  .42  
       
AVERAGE BALANCES ($ in millions)      
Loans  $ 4,450  $ 4,254  5
Investment securities  2,274  2,190  4
Earning assets  6,880  6,649  3
Total assets  7,436  7,074  5
Deposits  6,228  6,027  3
Shareholders' equity  720  732  (2)
Common shares - basic (thousands)  60,588  58,787  
Common shares - diluted (thousands)  60,590  58,845  
       
AT PERIOD END ($ in millions)      
Loans *  $ 4,672  $ 4,329  8
Investment securities  2,198  2,312  (5)
Total assets  7,567  7,425  2
Deposits  6,327  6,202  2
Shareholders' equity  740  796  (7)
Common shares outstanding (thousands)  60,259  59,432  
       
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. 
(3) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
       
           
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data;          
taxable equivalent) 2014 2013 2012 2011 2010
INCOME SUMMARY          
Net interest revenue  $ 224,418  $ 219,641  $ 229,758  $ 238,670  $ 244,637
Operating provision for credit losses (1)  8,500  65,500  62,500  251,000  234,750
Operating fee revenue  55,554  56,598  56,112  44,907  46,963
Total operating revenue (1)  271,472  210,739  223,370  32,577  56,850
Operating expenses (2)  162,865  174,304  186,774  261,599  242,952
Loss on sale of nonperforming assets  --   --   --   --   45,349
Operating income (loss) from continuing operations before taxes  108,607  36,435  36,596  (229,022)  (231,451)
Operating income taxes  40,987  (236,705)  2,740  (2,276)  73,218
Net operating income (loss) from continuing operations  67,620  273,140  33,856  (226,746)  (304,669)
Noncash goodwill impairment charges  --   --   --   --   (210,590)
Fraud loss provision and subsequent recovery, net of tax benefit  --   --   --   --   11,750
Net income (loss) from discontinued operations  --   --   --   --   (101)
Gain from sale of subsidiary, net of income taxes and selling costs  --   --   --   --   1,266
Net income (loss)  67,620  273,140  33,856  (226,746)  (502,344)
Preferred dividends and discount accretion  439  12,078  12,148  11,838  10,316
Net income (loss) available to common shareholders  $ 67,181  $ 261,062  $ 21,708  $ (238,584)  $ (512,660)
           
PERFORMANCE MEASURES          
Per common share:          
Diluted operating earnings (loss) from continuing operations (1)(2)  $ 1.11  $ 4.44  $ .38  $ (5.97)  $ (16.64)
Diluted earnings (loss) from continuing operations  1.11  4.44  .38  (5.97)  (27.15)
Diluted earnings (loss)  1.11  4.44  .38  (5.97)  (27.09)
Cash dividends declared  .11  --   --   --   -- 
Book value  12.20  11.30  6.67  6.62  15.40
Tangible book value (4)  12.15  11.26  6.57  6.47  14.80
           
Key performance ratios:          
Return on common equity (3)  9.17%  46.72%  5.43%  (93.57)%  (85.08)%
Return on assets  .91  3.86  .49  (3.15)  (6.61)
Net interest margin  3.26  3.30  3.51  3.52  3.59
Operating efficiency ratio from continuing operations (2)  58.26  63.14  65.43  92.27  98.98
Average equity to average assets  9.69  10.35  8.47  7.75  10.77
Average tangible equity to average assets (4)  9.67  10.31  8.38  7.62  8.88
Average tangible common equity to average assets (4)  9.60  7.55  5.54  3.74  6.52
Tangible common equity to risk-weighted assets (4)  13.82  13.17  8.26  8.25  5.64
           
ASSET QUALITY *          
Non-performing loans  $ 17,881  $ 26,819  $ 109,894  $ 127,479  $ 179,094
Foreclosed properties  1,726  4,221  18,264  32,859  142,208
Total non-performing assets (NPAs)  19,607  31,040  128,158  160,338  321,302
Allowance for loan losses  71,619  76,762  107,137  114,468  174,695
Operating net charge-offs (1)  13,879  93,710  69,831  311,227  215,657
Allowance for loan losses to loans  1.53%  1.77%  2.57%  2.79%  3.79%
Operating net charge-offs to average loans (1)  .31  2.22  1.69  7.33  4.42
NPAs to loans and foreclosed properties  .42  .72  3.06  3.87  6.77
NPAs to total assets  .26  .42  1.88  2.30  4.42
           
AVERAGE BALANCES ($ in millions)          
Loans  $ 4,450  $ 4,254  $ 4,166  $ 4,307  $ 4,961
Investment securities  2,274  2,190  2,089  1,999  1,453
Earning assets  6,880  6,649  6,547  6,785  6,822
Total assets  7,436  7,074  6,865  7,189  7,605
Deposits  6,228  6,027  5,885  6,275  6,373
Shareholders' equity  720  732  582  557  819
Common shares - Basic (thousands)  60,588  58,787  57,857  39,943  18,925
Common shares - Diluted (thousands)  60,590  58,845  57,857  39,943  18,925
           
AT YEAR END ($ in millions)          
Loans *  $ 4,672  $ 4,329  $ 4,175  $ 4,110  $ 4,604
Investment securities  2,198  2,312  2,079  2,120  1,490
Total assets  7,567  7,425  6,802  6,983  7,276
Deposits  6,327  6,202  5,952  6,098  6,469
Shareholders' equity  740  796  581  575  469
Common shares outstanding (thousands)  60,259  59,432  57,741  57,561  18,937
           
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes goodwill impairment charge of $211 million in 2010. (3) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (4) Excludes effect of acquisition related intangibles and associated amortization.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
           
           
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
  2014 2013
(in thousands, except per share  Fourth   Third   Second   First   Fourth 
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter
           
Interest revenue reconciliation          
Interest revenue - taxable equivalent  $ 64,353  $ 63,338  $ 61,783  $ 60,495  $ 61,695
Taxable equivalent adjustment  (398)  (405)  (377)  (357)  (380)
Interest revenue (GAAP)  $ 63,955  $ 62,933  $ 61,406  $ 60,138  $ 61,315
           
Net interest revenue reconciliation          
Net interest revenue - taxable equivalent  $ 58,332  $ 56,967  $ 54,950  $ 54,169  $ 55,879
Taxable equivalent adjustment  (398)  (405)  (377)  (357)  (380)
Net interest revenue (GAAP)  $ 57,934  $ 56,562  $ 54,573  $ 53,812  $ 55,499
           
Total revenue reconciliation          
Total operating revenue  $ 71,355  $ 69,379  $ 66,893  $ 63,845  $ 66,398
Taxable equivalent adjustment  (398)  (405)  (377)  (357)  (380)
Total revenue (GAAP)  $ 70,957  $ 68,974  $ 66,516  $ 63,488  $ 66,018
           
Income before taxes reconciliation          
Income before taxes  $ 29,436  $ 28,015  $ 26,361  $ 24,795  $ 24,784
Taxable equivalent adjustment  (398)  (405)  (377)  (357)  (380)
Income before taxes (GAAP)  $ 29,038  $ 27,610  $ 25,984  $ 24,438  $ 24,404
           
Income tax expense (benefit) reconciliation          
Income tax expense (benefit)  $ 11,189  $ 10,399  $ 10,004  $ 9,395  $ 8,873
Taxable equivalent adjustment  (398)  (405)  (377)  (357)  (380)
Income tax expense (benefit) (GAAP)  $ 10,791  $ 9,994  $ 9,627  $ 9,038  $ 8,493
           
Book value per common share reconciliation          
Tangible book value per common share  $ 12.15  $ 12.10  $ 11.91  $ 11.63  $ 11.26
Effect of goodwill and other intangibles  .05  .05  .03  .03  .04
Book value per common share (GAAP)  $ 12.20  $ 12.15  $ 11.94  $ 11.66  $ 11.30
           
Average equity to assets reconciliation          
Tangible common equity to assets 9.72% 9.83% 9.58% 9.22% 8.99%
Effect of preferred equity  --   --   --   .28  2.60
Tangible equity to assets  9.72  9.83  9.58  9.50  11.59
Effect of goodwill and other intangibles  .04  .02  .03  .02  .03
Equity to assets (GAAP)  9.76%  9.85%  9.61%  9.52%  11.62%
           
Tangible common equity to risk-weighted assets reconciliation      
Tangible common equity to risk-weighted assets  13.82%  14.10%  13.92%  13.63%  13.18%
Effect of other comprehensive income  .35  .34  .53  .36  .39
Effect of deferred tax limitation  (3.11)  (3.39)  (3.74)  (3.92)  (4.26)
Effect of trust preferred  1.00  1.02  1.04  1.03  1.04
Effect of preferred equity  --   --   --   --   2.39
Tier I capital ratio (Regulatory)  12.06%  12.07%  11.75%  11.10%  12.74%
           
           
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
(in thousands, except per share  For the Twelve Months
Ended December 31
data; taxable equivalent) 2014 2013 2012 2011 2010
           
Interest revenue reconciliation          
Interest revenue - taxable equivalent  $ 249,969  $ 247,323  $ 267,667  $ 304,308  $ 344,493
Taxable equivalent adjustment  (1,537)  (1,483)  (1,690)  (1,707)  (2,001)
Interest revenue (GAAP)  $ 248,432  $ 245,840  $ 265,977  $ 302,601  $ 342,492
           
Net interest revenue reconciliation          
Net interest revenue - taxable equivalent  $ 224,418  $ 219,641  $ 229,758  $ 238,670  $ 244,637
Taxable equivalent adjustment  (1,537)  (1,483)  (1,690)  (1,707)  (2,001)
Net interest revenue (GAAP)  $ 222,881  $ 218,158  $ 228,068  $ 236,963  $ 242,636
           
Provision for credit losses reconciliation          
Operating provision for credit losses  $ 8,500  $ 65,500  $ 62,500  $ 251,000  $ 234,750
Partial recovery of special fraud-related loan loss  --   --   --   --   (11,750)
Provision for credit losses (GAAP)  $ 8,500  $ 65,500  $ 62,500  $ 251,000  $ 223,000
           
Total revenue reconciliation          
Total operating revenue  $ 271,472  $ 210,739  $ 223,370  $ 32,577  $ 56,850
Taxable equivalent adjustment  (1,537)  (1,483)  (1,690)  (1,707)  (2,001)
Partial recovery of special fraud-related loan loss  --   --   --   --   11,750
Total revenue (GAAP)  $ 269,935  $ 209,256  $ 221,680  $ 30,870  $ 66,599
           
Expense reconciliation          
Operating expense  $ 162,865  $ 174,304  $ 186,774  $ 261,599  $ 288,301
Noncash goodwill impairment charge  --   --   --   --   210,590
Operating expense (GAAP)  $ 162,865  $ 174,304  $ 186,774  $ 261,599  $ 498,891
           
Income before taxes reconciliation          
Income before taxes  $ 108,607  $ 36,435  $ 36,596  $ (229,022)  $ (231,451)
Taxable equivalent adjustment  (1,537)  (1,483)  (1,690)  (1,707)  (2,001)
Noncash goodwill impairment charge  --   --   --   --   (210,590)
Partial recovery of special fraud-related loan loss  --   --   --   --   11,750
Income before taxes (GAAP)  $ 107,070  $ 34,952  $ 34,906  $ (230,729)  $ (432,292)
           
Income tax expense (benefit) reconciliation          
Income tax expense (benefit)  $ 40,987  $ (236,705)  $ 2,740  $ (2,276)  $ 73,218
Taxable equivalent adjustment  (1,537)  (1,483)  (1,690)  (1,707)  (2,001)
Income tax expense (benefit) (GAAP)  $ 39,450  $ (238,188)  $ 1,050  $ (3,983)  $ 71,217
           
Diluted earnings (loss) from continuing operations per common share reconciliation        
Diluted operating earnings (loss) from continuing operations per common share  $ 1.11  $ 4.44  $ .38  $ (5.97)  $ (16.64)
Noncash goodwill impairment charge  --   --   --   --   (11.13)
Partial recovery of special fraud-related loan loss  --   --   --   --   .62
Diluted earnings (loss) from continuing operations per common share (GAAP)  $ 1.11  $ 4.44  $ .38  $ (5.97)  $ (27.15)
           
Book value per common share reconciliation          
Tangible book value per common share  $ 12.15  $ 11.26  $ 6.57  $ 6.47  $ 14.80
Effect of goodwill and other intangibles  .05  .04  .10  .15  .60
Book value per common share (GAAP)  $ 12.20  $ 11.30  $ 6.67  $ 6.62  $ 15.40
           
Efficiency ratio from continuing operations reconciliation          
Operating efficiency ratio from continuing operations  58.26%  63.14%  65.43%  92.27%  98.98%
Noncash goodwill impairment charge  --   --   --   --   72.29
Efficiency ratio from continuing operations (GAAP)  58.26%  63.14%  65.43%  92.27%  171.27%
           
Average equity to assets reconciliation          
Tangible common equity to assets 9.60% 7.55% 5.54% 3.74% 6.52%
Effect of preferred equity  .07  2.76  2.84  3.88  2.36
Tangible equity to assets  9.67  10.31  8.38  7.62  8.88
Effect of goodwill and other intangibles  .02  .04  .09  .13  1.89
Equity to assets (GAAP)  9.69%  10.35%  8.47%  7.75%  10.77%
           
Tangible common equity to risk-weighted assets reconciliation          
Tangible common equity to risk-weighted assets  13.82%  13.18%  8.26%  8.25%  5.64%
Effect of other comprehensive income  .35  .39  .51  (.03)  (.42)
Effect of deferred tax limitation  (3.11)  (4.26)  --   --   -- 
Effect of trust preferred  1.00  1.04  1.15  1.18  1.06
Effect of preferred equity  --   2.39  4.24  4.29  3.53
Tier I capital ratio (Regulatory)  12.06%  12.74%  14.16%  13.69%  9.81%
           
Net charge-offs reconciliation          
Operating net charge-offs  $ 13,878  $ 93,710  $ 69,831  $ 311,227  $ 215,657
Subsequent partial recovery of fraud-related charge-off  --   --   --   --   (11,750)
Net charge-offs (GAAP)  $ 13,878  $ 93,710  $ 69,831  $ 311,227  $ 203,907
           
Net charge-offs to average loans reconciliation          
Operating net charge-offs to average loans  .31%  2.22%  1.69%  7.33%  4.42%
Subsequent partial recovery of fraud-related charge-off  --   --   --   --   (.25)
Net charge-offs to average loans (GAAP)  .31%  2.22%  1.69%  7.33%  4.17%
           
           
           
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
           
  2014 2013
   Fourth   Third   Second   First   Fourth 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE  $ 1,163  $ 1,153  $ 1,163  $ 1,142  $ 1,134
Income producing commercial RE  599  605  598  624  623
Commercial & industrial  710  650  554  495  472
Commercial construction  196  181  160  148  149
Total commercial  2,668  2,589  2,475  2,409  2,378
Residential mortgage  866  866  861  866  875
Home equity lines of credit  466  459  451  447  441
Residential construction  299  307  302  318  328
Consumer installment  373  348  321  316  307
Total loans  $ 4,672  $ 4,569  $ 4,410  $ 4,356  $ 4,329
           
LOANS BY MARKET          
North Georgia  $ 1,163  $ 1,168  $ 1,175  $ 1,205  $ 1,240
Atlanta MSA  1,282  1,289  1,305  1,290  1,275
North Carolina  553  553  555  563  572
Coastal Georgia  456  444  426  425  423
Gainesville MSA  257  254  257  262  255
East Tennessee  280  281  270  272  280
South Carolina / Corporate  412  337  206  131  88
Other (2)  269  243  216  208  196
Total loans  $ 4,672  $ 4,569  $ 4,410  $ 4,356  $ 4,329
           
(1) Excludes total loans of $2.8 million, $2.8 million, $3.1 million, $19.3 million and $20.3 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank(2) Includes purchased indirect auto loans that are not assigned to a geographic region.
           
           
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
           
  2014 2013 Linked  Year over 
   Fourth   Third   Fourth  Quarter  Year 
(in millions) Quarter Quarter Quarter Change Change
LOANS BY CATEGORY          
Owner occupied commercial RE  $ 1,163  $ 1,153  $ 1,134  $ 10  $ 29
Income producing commercial RE  599  605  623  (6)  (24)
Commercial & industrial  710  650  472  60  238
Commercial construction  196  181  149  15  47
Total commercial  2,668  2,589  2,378  79  290
Residential mortgage  866  866  875  --   (9)
Home equity lines of credit  466  459  441  7  25
Residential construction  299  307  328  (8)  (29)
Consumer installment  373  348  307  25  66
Total loans  $ 4,672  $ 4,569  $ 4,329  103  343
           
LOANS BY MARKET          
North Georgia  $ 1,163  $ 1,168  $ 1,240  (5)  (77)
Atlanta MSA  1,282  1,289  1,275  (7)  7
North Carolina  553  553  572  --   (19)
Coastal Georgia  456  444  423  12  33
Gainesville MSA  257  254  255  3  2
East Tennessee  280  281  280  (1)  -- 
South Carolina / Corporate  412  337  88  75  324
Other (2)  269  243  196  26  73
Total loans  $ 4,672  $ 4,569  $ 4,329  103  343
           
(1) Excludes total loans of $2.8 million, $2.8 million, $3.1 million, $19.3 million and $20.3 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank(2) Includes purchased indirect auto loans that are not assigned to a geographic region.
           
           
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End (1)
           
(in millions) 2014 2013 2012 2011 2010
LOANS BY CATEGORY          
Owner occupied commercial RE  $ 1,163  $ 1,134  $ 1,131  $ 1,112  $ 980
Income producing commercial RE  599  623  682  710  781
Commercial & industrial  710  472  458  428  441
Commercial construction  196  149  155  164  297
Total commercial  2,668  2,378  2,426  2,414  2,499
Residential mortgage  866  875  829  835  944
Home equity lines of credit  466  441  385  300  335
Residential construction  299  328  382  448  695
Consumer / installment  373  307  153  113  131
Total loans  $ 4,672  $ 4,329  $ 4,175  $ 4,110  $ 4,604
           
LOANS BY MARKET          
North Georgia  $ 1,163  $ 1,240  $ 1,364  $ 1,426  $ 1,689
Atlanta MSA  1,282  1,275  1,250  1,220  1,310
North Carolina  553  572  579  597  702
Coastal Georgia  456  423  400  346  335
Gainesville MSA  257  255  261  265  312
East Tennessee  280  280  283  256  256
South Carolina / Corporate  412  88  --   --   -- 
Other (2)  269  196  38  --   -- 
Total loans  $ 4,672  $ 4,329  $ 4,175  $ 4,110  $ 4,604
           
(1) Excludes total loans of $2.8 million, $20.3 million, $33.4 million, $54.5 million and $68.2 million as of December 31, 2014, 2013, 2012, 2011 and 2010, respectively, that are covered by loss-sharing agreements with the FDIC, related to the acquisition of Southern Community Bank(2) Includes purchased indirect auto loans that are not assigned to a geographic region.
           
       
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
     
  Fourth Quarter 2014
   Non-performing   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE  $ 4,133  $ 355  $ 4,488
Income producing CRE  717  --   717
Commercial & industrial  1,571  --   1,571
Commercial construction  83  15  98
Total commercial  6,504  370  6,874
Residential mortgage  8,196  1,183  9,379
Home equity lines of credit  695  40  735
Residential construction  2,006  133  2,139
Consumer installment  480  --   480
Total NPAs  $ 17,881  $ 1,726  $ 19,607
Balance as a % of Unpaid Principal 69.9% 54.1% 68.1%
       
NONPERFORMING ASSETS BY MARKET      
North Georgia  $ 5,669  $ 711  $ 6,380
Atlanta MSA  1,837  372  2,209
North Carolina  5,221  234  5,455
Coastal Georgia  799  105  904
Gainesville MSA  1,310  81  1,391
East Tennessee  1,414  201  1,615
South Carolina / Corporate  1,285  22  1,307
Other (3)  346  --   346
Total NPAs  $ 17,881  $ 1,726  $ 19,607
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 18,745  $ 3,146  $ 21,891
Loans placed on non-accrual  7,140  --   7,140
Payments received  (5,286)  --   (5,286)
Loan charge-offs  (1,841)  --   (1,841)
Foreclosures  (877)  877  -- 
Capitalized costs  --   --   -- 
Property sales  --   (2,483)  (2,483)
Write downs  --   (1)  (1)
Net gains (losses) on sales  --   187  187
Ending Balance  $ 17,881  $ 1,726  $ 19,607
       
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
       
       
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
       
  Third Quarter 2014
   Non-performing   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE  $ 2,156  $ 1,024  $ 3,180
Income producing CRE  1,742  42  1,784
Commercial & industrial  1,593  --   1,593
Commercial construction  148  --   148
Total commercial  5,639  1,066  6,705
Residential mortgage  8,350  1,769  10,119
Home equity lines of credit  720  90  810
Residential construction  3,543  221  3,764
Consumer installment  493  --   493
Total NPAs  $ 18,745  $ 3,146  $ 21,891
Balance as a % of Unpaid Principal 68.6% 54.5% 66.1%
       
NONPERFORMING ASSETS BY MARKET      
North Georgia  $ 7,392  $ 1,717  $ 9,109
Atlanta MSA  1,724  364  2,088
North Carolina  4,919  398  5,317
Coastal Georgia  781  160  941
Gainesville MSA  1,403  85  1,488
East Tennessee  1,227  245  1,472
South Carolina / Corporate  945  177  1,122
Other (3)  354  --   354
Total NPAs  $ 18,745  $ 3,146  $ 21,891
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 20,724  $ 2,969  $ 23,693
Loans placed on non-accrual  7,665  --   7,665
Payments received  (3,129)  --   (3,129)
Loan charge-offs  (4,353)  --   (4,353)
Foreclosures  (2,162)  2,162  -- 
Capitalized costs  --   209  209
Property sales  --   (2,350)  (2,350)
Write downs  --   (108)  (108)
Net gains (losses) on sales  --   264  264
Ending Balance  $ 18,745  $ 3,146  $ 21,891
       
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
       
       
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
       
  Second Quarter 2014
   Non-performing   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE  $ 2,975  $ 653  $ 3,628
Income producing CRE  1,032  242  1,274
Commercial & industrial  1,102  --   1,102
Commercial construction  95  --   95
Total commercial  5,204  895  6,099
Residential mortgage  10,201  1,426  11,627
Home equity lines of credit  510  128  638
Residential construction  4,248  520  4,768
Consumer installment  561  --   561
Total NPAs  $ 20,724  $ 2,969  $ 23,693
Balance as a % of Unpaid Principal 66.5% 50.4% 63.9%
       
NONPERFORMING ASSETS BY MARKET      
North Georgia  $ 8,216  $ 1,392  $ 9,608
Atlanta MSA  3,883  510  4,393
North Carolina  5,314  615  5,929
Coastal Georgia  782  80  862
Gainesville MSA  921  49  970
East Tennessee  1,218  323  1,541
South Carolina / Corporate  --   --   -- 
Other (3)  390  --   390
Total NPAs  $ 20,724  $ 2,969  $ 23,693
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 25,250  $ 5,594  $ 30,844
Loans placed on non-accrual  9,529  --   9,529
Payments received  (4,027)  --   (4,027)
Loan charge-offs  (8,341)  --   (8,341)
Foreclosures  (1,687)  1,687  -- 
Capitalized costs  --   --   -- 
Property sales  --   (4,430)  (4,430)
Write downs  --   (305)  (305)
Net gains (losses) on sales  --   423  423
Ending Balance  $ 20,724  $ 2,969  $ 23,693
       
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
       
             
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
 
  Fourth Quarter 2014 Third Quarter 2014 Second Quarter 2014
     Net Charge-     Net Charge-     Net Charge- 
     Offs to     Offs to     Offs to 
   Net   Average   Net   Average   Net   Average 
(in thousands) Charge-Offs Loans (2) Charge-Offs Loans (2) Charge-Offs Loans (2)
NET CHARGE-OFFS BY CATEGORY            
Owner occupied CRE  $ 891  .31%  $ 746  .26%  $ (1,836)  (.64)%
Income producing CRE  143  .09  104  .07  435  .29
Commercial & industrial  (295)  (.17)  (341)  (.23)  662  .52
Commercial construction  (6)  (.01)  103  .24  131  .34
Total commercial  733  .11  612  .10  (608)  (.10)
Residential mortgage  1,226  .56  1,116  .52  2,509  1.17
Home equity lines of credit  238  .20  356  .31  466  .42
Residential construction  (44)  (.06)  712  .94  1,671  2.13
Consumer installment  356  .39  359  .43  137  .18
Total  $ 2,509  .22  $ 3,155  .28  $ 4,175  .38
             
             
NET CHARGE-OFFS BY MARKET            
North Georgia  $ 791  .27%  $ 1,861  .63%  $ (741)  (.25)%
Atlanta MSA  147  .05  (250)  (.08)  1,481  .46
North Carolina  1,103  .79  656  .47  2,161  1.55
Coastal Georgia  30  .03  228  .21  116  .11
Gainesville MSA  94  .15  259  .40  797  1.23
East Tennessee  54  .08  230  .33  288  .42
South Carolina / Corporate  110  .11  5  .01  --   -- 
Other (3)  180  .29  166  .31  73  .14
Total  $ 2,509  .22  $ 3,155  .28  $ 4,175  .38
             
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
             
         
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
  Three Months Ended Twelve Months Ended
  December 31, December 31,
(in thousands, except per share data) 2014 2013 2014 2013
         
Interest revenue:        
Loans, including fees  $ 50,677  $ 49,066  $ 196,279  $ 200,893
Investment securities, including tax exempt of $180, $203, $738 and $827  12,375  11,253  48,493  41,158
Deposits in banks and short-term investments  903  996  3,660  3,789
Total interest revenue  63,955  61,315  248,432  245,840
         
Interest expense:        
Deposits:        
NOW  435  473  1,651  1,759
Money market  868  569  3,060  2,210
Savings  20  24  81  133
Time  1,623  1,593  7,133  10,464
Total deposit interest expense  2,946  2,659  11,925  14,566
Short-term borrowings  96  508  2,160  2,071
Federal Home Loan Bank advances  339  3  912  68
Long-term debt  2,640  2,646  10,554  10,977
Total interest expense  6,021  5,816  25,551  27,682
Net interest revenue  57,934  55,499  222,881  218,158
Provision for credit losses  1,800  3,000  8,500  65,500
Net interest revenue after provision for credit losses  56,134  52,499  214,381  152,658
         
Fee revenue:        
Service charges and fees  8,446  8,166  33,073  31,997
Mortgage loan and other related fees  2,111  1,713  7,520  9,925
Brokerage fees  1,176  1,361  4,807  4,465
Securities gains, net  208  70  4,871  186
Loss from prepayment of debt  --  --  (4,446)  --
Other  2,882  2,209  9,729  10,025
Total fee revenue  14,823  13,519  55,554  56,598
Total revenue  70,957  66,018  269,935  209,256
         
Operating expenses:        
Salaries and employee benefits  26,592  24,817  100,941  96,233
Communications and equipment  3,153  3,414  12,523  13,233
Occupancy  3,448  3,735  13,513  13,930
Advertising and public relations  802  781  3,461  3,718
Postage, printing and supplies  1,086  882  3,542  3,283
Professional fees  834  2,102  6,707  9,617
Foreclosed property  131  191  634  7,869
FDIC assessments and other regulatory charges  883  1,804  4,792  9,219
Amortization of intangibles  287  408  1,348  2,031
Other  4,703  3,480  15,404  15,171
Total operating expenses  41,919  41,614  162,865  174,304
Net income before income taxes  29,038  24,404  107,070  34,952
Income tax expense (benefit)  10,791  8,493  39,450  (238,188)
Net income  18,247  15,911  67,620  273,140
Preferred stock dividends and discount accretion  --   2,912  439  12,078
Net income available to common shareholders  $ 18,247  $ 12,999  $ 67,181  $ 261,062
         
Earnings per common share:        
Basic  $ .30  $ .22  $ 1.11  $ 4.44
Diluted  .30  .22  1.11  4.44
Weighted average common shares outstanding:        
Basic  60,830  59,923  60,588  58,787
Diluted  60,833  59,925  60,590  58,845
         
     
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
  December 31, December 31,
(in thousands, except share and per share data) 2014 2013
     
ASSETS    
Cash and due from banks  $ 77,180  $ 71,230
Interest-bearing deposits in banks  89,074  119,669
Short-term investments  26,401  37,999
Cash and cash equivalents  192,655  228,898
Securities available for sale  1,782,734  1,832,217
Securities held to maturity (fair value $425,233 and $485,585)  415,267  479,742
Mortgage loans held for sale  13,737  10,319
Loans, net of unearned income  4,672,119  4,329,266
Less allowance for loan losses  (71,619)  (76,762)
Loans, net  4,600,500  4,252,504
Assets covered by loss sharing agreements with the FDIC  3,315  22,882
Premises and equipment, net  159,390  163,589
Bank owned life insurance  81,294  80,670
Accrued interest receivable  20,103  19,598
Goodwill and other intangible assets  3,641  3,480
Foreclosed property  1,726  4,221
Net deferred tax asset  215,503  258,518
Derivative financial instruments  20,599  23,833
Other assets  56,522  44,948
Total assets  $ 7,566,986  $ 7,425,419
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
Deposits:    
Demand  $ 1,574,317  $ 1,388,512
NOW  1,504,887  1,427,939
Money market  1,273,283  1,227,575
Savings  292,308  251,125
Time:    
Less than $100,000  748,478  892,961
Greater than $100,000  508,228  588,689
Brokered  425,011  424,704
Total deposits  6,326,512  6,201,505
Repurchase agreements  6,000  53,241
Federal Home Loan Bank advances  270,125  120,125
Long-term debt  129,865  129,865
Derivative financial instruments  31,997  46,232
Unsettled securities purchases  5,425  29,562
Accrued expenses and other liabilities  57,485  49,174
Total liabilities  6,827,409  6,629,704
Shareholders' equity:    
Preferred stock, $1 par value; 10,000,000 shares authorized;    
Series B; $1,000 stated value; 0, 105,000 and 180,000 shares issued and outstanding  --  105,000
Series D; $1,000 stated value; 0, 16,613 and 16,613 shares issued and outstanding  --  16,613
Common stock, $1 par value; 100,000,000 shares authorized; 50,178,605 and 46,243,345 shares issued and outstanding  50,178  46,243
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 10,080,787 and 13,188,206 shares issued and outstanding  10,081  13,188
Common stock issuable; 357,983 and 241,832 shares  5,168  3,930
Capital surplus  1,080,508  1,078,676
Accumulated deficit  (387,568)  (448,091)
Accumulated other comprehensive loss  (18,790)  (19,844)
Total shareholders' equity  739,577  795,715
Total liabilities and shareholders' equity  $ 7,566,986  $ 7,425,419
     
             
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
  2014 2013
   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)  $ 4,620,517  $ 50,883 4.37%  $ 4,315,370  $ 49,205 4.52%
Taxable securities (3)  2,202,986  12,195 2.21  2,258,938  11,050 1.96
Tax-exempt securities (1)(3)  18,579  295 6.35  20,681  332 6.42
Federal funds sold and other interest-earning assets  170,703  980 2.30  227,622  1,108 1.95
             
Total interest-earning assets  7,012,785  64,353 3.65  6,822,611  61,695 3.59
Non-interest-earning assets:            
Allowance for loan losses  (72,534)      (81,335)    
Cash and due from banks  73,973      61,083    
Premises and equipment  160,049      165,286    
Other assets (3)  391,097      402,328    
Total assets  $ 7,565,370      $ 7,369,973    
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW  $ 1,481,414  435 .12  $ 1,372,367  473 .14
Money market  1,433,680  868 .24  1,367,589  569 .17
Savings  291,163  20 .03  250,418  24 .04
Time less than $100,000  761,850  814 .42  907,042  1,164 .51
Time greater than $100,000  520,937  763 .58  604,490  1,029 .68
Brokered time deposits  273,706  46 .07  271,490  (600) (.88)
Total interest-bearing deposits  4,762,750  2,946 .25  4,773,396  2,659 .22
             
Federal funds purchased and other borrowings  24,750  96 1.54  54,839  508 3.68
Federal Home Loan Bank advances  193,549  339 .69  6,647  3 .18
Long-term debt  129,865  2,640 8.07  129,865  2,646 8.08
Total borrowed funds  348,164  3,075 3.50  191,351  3,157 6.55
             
Total interest-bearing liabilities  5,110,914  6,021 .47  4,964,747  5,816 .46
Non-interest-bearing liabilities:            
Non-interest-bearing deposits  1,620,635      1,416,483    
Other liabilities  95,679      132,557    
Total liabilities  6,827,228      6,513,787    
Shareholders' equity  738,142      856,186    
Total liabilities and shareholders' equity  $ 7,565,370      $ 7,369,973    
             
Net interest revenue    $ 58,332      $ 55,879  
Net interest-rate spread     3.18%     3.13%
             
Net interest margin (4)     3.31%     3.26%
             
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $8.59 million in 2014 and pretax unrealized losses of $6.33 million in 2013 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
             
             
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
   2014  2013
   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)  $ 4,450,268  $ 197,039 4.43%  $ 4,254,159  $ 201,278 4.73%
Taxable securities (3)  2,255,084  47,755 2.12  2,169,024  40,331 1.86
Tax-exempt securities (1)(3)  19,279  1,209 6.27  21,228  1,354 6.38
Federal funds sold and other interest-earning assets  155,803  3,966 2.55  204,303  4,360 2.13
             
Total interest-earning assets  6,880,434  249,969 3.63  6,648,714  247,323 3.72
Non-interest-earning assets:            
Allowance for loan losses  (75,237)      (95,411)    
Cash and due from banks  67,818      63,174    
Premises and equipment  161,391      167,424    
Other assets (3)  401,240      290,098    
Total assets  $ 7,435,646      $ 7,073,999    
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW  $ 1,396,373  1,651 .12  $ 1,285,842  1,759 .14
Money market  1,389,837  3,060 .22  1,315,385  2,210 .17
Savings  277,351  81 .03  244,725  133 .05
Time less than $100,000  811,846  3,636 .45  974,470  5,850 .60
Time greater than $100,000  551,027  3,373 .61  654,102  5,115 .78
Brokered time deposits  293,657  124 .04  219,215  (501) (.23)
Total interest-bearing deposits  4,720,091  11,925 .25  4,693,739  14,566 .31
             
Federal funds purchased and other borrowings  74,541  2,160 2.90  66,561  2,071 3.11
Federal Home Loan Bank advances  175,481  912 .52  32,604  68 .21
Long-term debt  129,865  10,554 8.13  131,081  10,977 8.37
Total borrowed funds  379,887  13,626 3.59  230,246  13,116 5.70
             
Total interest-bearing liabilities  5,099,978  25,551 .50  4,923,985  27,682 .56
Non-interest-bearing liabilities:            
Non-interest-bearing deposits  1,507,944      1,333,199    
Other liabilities  107,523      84,506    
Total liabilities  6,715,445      6,341,690    
Shareholders' equity  720,201      732,309    
Total liabilities and shareholders' equity  $ 7,435,646      $ 7,073,999    
             
Net interest revenue    $ 224,418      $ 219,641  
Net interest-rate spread     3.13%     3.16%
             
Net interest margin (4)     3.26%     3.30%
             
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $3.36 million in 2014 and pretax unrealized gains of $4.36 million in 2013 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
             
CONTACT: Rex S. Schuette

         Chief Financial Officer

         (706) 781-2266

         Rex_Schuette@ucbi.com

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Source: United Community Banks, Inc.

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