United Community Banks, Inc.
Jul 22, 2015

United Community Banks, Inc. Reports Net Operating Income of $20.0 Million for Second Quarter 2015, Up 22 Percent From a Year Ago

BLAIRSVILLE, Ga., July 22, 2015 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today reported net operating income of $20.0 million for the second quarter of 2015, up 22 percent from a year ago. Operating earnings per diluted share was 32 cents, up 19 percent from a year ago. The increase reflects strong loan and core deposit growth, a stable net interest margin, growth in fee revenue and a lower provision for credit losses.

Operating earnings and diluted operating earnings per share exclude the effects of merger-related charges which are not considered part of ongoing operations. Including those charges, net income was $17.8 million for the second quarter, or 28 cents per diluted share. For the first six months, United reported net income of $35.5 million, or 57 cents per diluted share. Excluding merger related charges, net operating income was $37.6 million, or 61 cents per diluted share.

"Our second quarter financial performance was outstanding by every measure," said Jimmy Tallent, chairman and chief executive officer.  "I'm especially proud to report that we achieved our goal for a one percent return on assets, excluding merger-related charges.

"We had solid loan growth combined with a steady net interest margin," Tallent continued. "Strong recoveries of previously charged-off loans drove our provision for credit losses down to half the first quarter level. Fee revenue was up significantly, with strong growth in our mortgage business and gains from our SBA lending business.

"Second quarter net loan growth of $142 million, excluding the merger with MoneyTree Corporation and its wholly owned subsidiary, First National Bank ("FNB"), was driven by strong loan production of $526 million across all United markets.  Our community banks originated $296 million of loan production while our specialized lending area, which includes health care, corporate, SBA, asset-based, middle market and commercial real estate lending, produced $152 million. Core deposit growth was another contributing factor with a linked-quarter increase of $109 million, or 11 percent annualized, excluding deposits acquired in the merger. Increased demand deposits in our Atlanta and western North Carolina markets drove over half of this growth."

Second quarter taxable equivalent net interest revenue totaled $61.3 million, up $3.70 million from the first quarter and up $6.37 million from the second quarter of 2014. The acquisition of FNB added just over $2.0 million to second quarter net interest revenue. The taxable equivalent net interest margin of 3.30 percent held steady with the first quarter and was up 9 basis points from a year ago. Along with loan growth, this drove the remainder of the increase in net interest revenue.

At $900 thousand, the second quarter provision for credit losses was half of the amount from the first quarter and down $1.3 million from the second quarter of 2014. Second quarter net charge-offs were $978 thousand compared with $2.56 million in the first quarter and $4.18 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the second quarter. Nonperforming assets to total assets were .26 percent, equal to last quarter, and down from .32 percent a year ago.

Second quarter fee revenue totaled $17.3 million, up $1.58 million from the first quarter and $3.12 million from the second quarter of 2014. Higher mortgage fees and an increase in gains from SBA loan sales account for most of the increase from both prior periods. Mortgage fees of $3.71 million were up $952 thousand from the first quarter and up $1.83 million from a year ago, reflecting strong growth in home purchases and an increase in refinancing activity. Closed mortgage loans totaled $128 million in the second quarter of 2015, compared with $87.9 million in the first quarter and $68.5 million in the second quarter of 2014. SBA loan sale gains totaled $1.49 million in the second quarter of 2015 compared with $1.14 million in the first quarter of 2015 and $744 thousand in the second quarter of 2014.

Second quarter brokerage fees of $1.23 million from United's advisory services business were down $319 thousand from the first quarter and were level with the second quarter of 2014. Service charges and fees of $8.38 million were up $760 thousand from the first quarter, reflecting growth in interchange fees, while down $152 thousand from a year ago, primarily reflecting the declining trend in overdraft fees.

"Our growth in fee revenue reflects our commitment to diversifying the revenue stream by focusing on fee generating products and services," stated Tallent.

Operating expenses, excluding merger-related charges of $3.17 million, were $45.2 million in the second quarter compared to $43.1 million in the first quarter and $40.5 million a year ago. The acquisition of FNB added approximately $1.6 million in operating expenses from the acquisition date of May 1. FNB's expenses are expected to decline as anticipated cost savings are realized. First quarter 2015 operating expenses included a non-core charge of $690 thousand associated with closing all loss sharing agreements with the FDIC.

Second quarter salaries and employee benefits expense of $28.0 million was up $1.52 million from the first quarter and $3.67 million from a year ago. The increases reflect the addition of FNB's compensation expenses for two months, investment in new producers and support staff for the specialized lending area, and higher commissions and incentives associated with growth in the mortgage business and in commercial loans and core deposits. Other operating expenses of $4.89 million for the second quarter were down $358 thousand from the first quarter and up $486 thousand from the second quarter of 2014. Other operating expenses for the first quarter 2015 included the $690 thousand charge associated with closing all loss sharing agreements with the FDIC. The increase from a year ago is mostly due to higher lending support costs.

Tallent noted, "The previously announced merger with FNB closed on May 1, and their results of operations are included in United's results from that date forward. Conversion of the operating systems was successfully completed last weekend.

"We also announced our planned merger with Palmetto Bancshares, Inc. and its banking subsidiary, The Palmetto Bank, which is headquartered in Greenville, South Carolina," Tallent said.  "The Palmetto Bank is a high-quality franchise with $1.2 billion in assets and 25 banking offices in the Upstate South Carolina markets. The merger creates significant benefits for United, including meaningful earnings per share accretion, improved growth profile and profitability, attractive rates of return, and higher franchise value. We have received all regulatory approvals and the transaction is scheduled to close on September 1. I am very pleased to welcome both First National Bank and The Palmetto Bank to the United family."

At June 30, 2015, capital ratios were as follows: Tier 1 Risk-Based of 11.9 percent; Total Risk-Based of 13.1 percent; Tier 1 Common Risk-Based of 11.9 percent; and, Tier 1 Leverage of 9.1 percent.

"Our second quarter results continue the positive momentum from the first quarter, with strong growth in loans, core deposits, and fee revenue," Tallent said. "We are excited about executing our growth strategies to expand the franchise and add value for shareholders. And, as always, we look forward to serving our customers - both existing and new - with the outstanding service for which our bankers are so very well known."

Conference Call

United will hold a conference call today, Wednesday, July 22, 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 74542415. 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 $8.2 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 114 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.  In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and in 2015 was ranked fourteenth on the Forbes list of America's Best Banks.  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 2014 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
 
            Second
  2015 2014 Quarter
(in thousands, except per share  Second   First   Fourth   Third   Second  2015-2014
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter Change
INCOME SUMMARY            
Interest revenue  $ 66,134  $ 62,909  $ 64,353  $ 63,338  $ 61,783  
Interest expense  4,817  5,292  6,021  6,371  6,833  
Net interest revenue  61,317  57,617  58,332  56,967  54,950  12%
Provision for credit losses  900  1,800  1,800  2,000  2,200  
Fee revenue  17,266  15,682  14,823  14,412  14,143  22
Total revenue  77,683  71,499  71,355  69,379  66,893  16
Expenses - operating (1)  45,247  43,061  41,919  41,364  40,532  12
Income before income tax expense - operating (1)  32,436  28,438  29,436  28,015  26,361  23
Income tax expense - operating (1)  12,447  10,768  11,189  10,399  10,004  24
Net income - operating (1)  19,989  17,670  18,247  17,616  16,357  22
Preferred dividends and discount accretion  17  --   --   --   --   
Net income available to common shareholders - operating (1)  19,972  17,670  18,247  17,616  16,357  22
Merger-related charges, net of income tax benefit  2,176  --   --   --   --   
Net income available to common shareholders - GAAP  $ 17,796  $ 17,670  $ 18,247  $ 17,616  $ 16,357  9
             
PERFORMANCE MEASURES            
Per common share:            
Diluted income - operating (1)  $ .32  $ .29  $ .30  $ .29  $ .27  19
Diluted income - GAAP  .28  .29  .30  .29  .27  4
Cash dividends declared  .05  .05  .05  .03  .03  
Book value  12.95  12.58  12.20  12.15  11.94  8
Tangible book value (3)  12.66  12.53  12.15  12.10  11.91  6
             
Key performance ratios:            
Return on common equity - operating (1)(2)(4)  9.90%  9.34%  9.60%  9.41%  8.99%  
Return on common equity - GAAP (2)(4)  8.83  9.34  9.60  9.41  8.99  
Return on assets - operating (1)(4)  1.00  .94  .96  .95  .88  
Return on assets - GAAP (4)  .89  .94  .96  .95  .88  
Dividend payout ratio - operating (1)  15.63  17.24  16.67  10.34  11.11  
Dividend payout ratio - GAAP  17.86  17.24  16.67  10.34  11.11  
Net interest margin (4)  3.30  3.31  3.31  3.32  3.21  
Efficiency ratio - operating (1)  57.59  59.15  57.47  57.96  58.65  
Efficiency ratio - GAAP  61.63  59.15  57.47  57.96  58.65  
Average equity to average assets 10.05 9.86 9.76 9.85 9.61  
Average tangible equity to average assets (3) 9.91 9.82 9.72 9.83 9.58  
Average tangible common equity to  average assets (3) 9.83 9.82 9.72 9.83 9.58  
Tangible common equity to risk-weighted  assets (3)(5) 13.24 13.53 13.82 14.10 13.92  
             
ASSET QUALITY            
Nonperforming loans  $ 18,805  $ 19,015  $ 17,881  $ 18,745  $ 20,724  (9)
Foreclosed properties  2,356  1,158  1,726  3,146  2,969  (21)
Total nonperforming assets (NPAs)  21,161  20,173  19,607  21,891  23,693  (11)
Allowance for loan losses  70,129  70,007  71,619  71,928  73,248  
Net charge-offs  978  2,562  2,509  3,155  4,175  (77)
Allowance for loan losses to loans 1.36% 1.46% 1.53% 1.57% 1.66%  
Net charge-offs to average loans (4)  .08  .22  .22  .28  .38  
NPAs to loans and foreclosed properties  .41  .42  .42  .48  .54  
NPAs to total assets  .26  .26  .26  .29  .32  
             
AVERAGE BALANCES ($ in millions)            
Loans  $ 5,017  $ 4,725  $ 4,621  $ 4,446  $ 4,376  15
Investment securities  2,261  2,203  2,222  2,231  2,326  (3)
Earning assets  7,444  7,070  7,013  6,820  6,861  8
Total assets  8,017  7,617  7,565  7,374  7,418  8
Deposits  6,669  6,369  6,383  6,143  6,187  8
Shareholders' equity  806  751  738  726  713  13
Common shares - basic (thousands)  62,549  60,905  60,830  60,776  60,712  
Common shares - diluted (thousands)  62,553  60,909  60,833  60,779  60,714  
             
AT PERIOD END ($ in millions)            
Loans  $ 5,174  $ 4,788  $ 4,672  $ 4,569  $ 4,410  17
Investment securities  2,322  2,201  2,198  2,222  2,190  6
Total assets  8,246  7,664  7,567  7,526  7,352  12
Deposits  6,808  6,438  6,327  6,241  6,164  10
Shareholders' equity  827  764  740  736  722  15
Common shares outstanding (thousands)  62,700  60,309  60,259  60,248  60,139  
             
(1)  Excludes merger-related charges.  (2) 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). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.
             
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
 
  For the Six  
  Months Ended YTD
(in thousands, except per share June 30, 2015-2014
data; taxable equivalent) 2015 2014 Change
INCOME SUMMARY      
Interest revenue  $ 129,043  $ 122,278  
Interest expense  10,109  13,159  
Net interest revenue  118,934  109,119  9%
Provision for credit losses  2,700  4,700  
Fee revenue  32,948  26,319  25
Total revenue  149,182  130,738  14
Expenses - operating (1)  88,308  79,582  11
Income before income tax expense - operating (1)  60,874  51,156  19
Income tax expense - operating (1)  23,215  19,399  20
Net income - operating (1)  37,659  31,757  19
Preferred dividends and discount accretion  17  439  
Net income available to common shareholders - operating (1)  37,642  31,318  20
Merger-related charges, net of income tax benefit  2,176  --   
Net income available to common shareholders - GAAP  $ 35,466  $ 31,318  13
       
PERFORMANCE MEASURES      
Per common share:      
Diluted income - operating (1)  $ .61  $ .52  17
Diluted income - GAAP  .57  .52  10
Cash dividends declared  .10  .03  
Book value  12.95  11.94  8
Tangible book value (3)  12.66  11.91  6
       
Key performance ratios:      
Return on common equity - operating (1)(2)(4)  9.63%  8.82%  
Return on common equity - GAAP (2)(4)  9.08  8.82  
Return on assets - operating (1)(4)  .97  .87  
Return on assets - GAAP (4)  .92  .87  
Dividend payout ratio - operating (1)  16.39  5.77  
Dividend payout ratio - GAAP  17.54  5.77  
Net interest margin (4)  3.30  3.21  
Efficiency ratio - operating (1)  58.34  58.85  
Efficiency ratio - GAAP  60.44  58.85  
Average equity to average assets 9.96 9.56  
Average tangible equity to average assets (3) 9.87 9.54  
Average tangible common equity to average assets (3) 9.83 9.40  
Tangible common equity to risk-weighted assets (3)(5) 13.24 13.92  
       
ASSET QUALITY      
Nonperforming loans  $ 18,805  $ 20,724  
Foreclosed properties  2,356  2,969  
Total nonperforming assets (NPAs)  21,161  23,693  
Allowance for loan losses  70,129  73,248  
Net charge-offs  3,540  8,214  
Allowance for loan losses to loans 1.36% 1.66%  
Net charge-offs to average loans (4)  .15  .38  
NPAs to loans and foreclosed properties  .41  .54  
NPAs to total assets  .26  .32  
       
AVERAGE BALANCES ($ in millions)      
Loans  $ 4,872  $ 4,366  12
Investment securities  2,232  2,323  (4)
Earning assets  7,258  6,844  6
Total assets  7,818  7,401  6
Deposits  6,520  6,192  5
Shareholders' equity  778  708  10
Common shares - basic (thousands)  61,730  60,386  2
Common shares - diluted (thousands)  61,734  60,388  2
       
AT PERIOD END ($ in millions)      
Loans  $ 5,174  $ 4,410  17
Investment securities  2,322  2,190  6
Total assets  8,246  7,352  12
Deposits  6,808  6,164  10
Shareholders' equity  827  722  15
Common shares outstanding (thousands)  62,700  60,139  
       
(1)  Excludes merger-related charges.  (2) 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). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.
       
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
 
  2015 2014
(in thousands, except per share  Second   First   Fourth   Third   Second 
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter
           
Interest revenue reconciliation          
Interest revenue - taxable equivalent  $ 66,134  $ 62,909  $ 64,353  $ 63,338  $ 61,783
Taxable equivalent adjustment  (326)  (375)  (398)  (405)  (377)
Interest revenue (GAAP)  $ 65,808  $ 62,534  $ 63,955  $ 62,933  $ 61,406
           
Net interest revenue reconciliation          
Net interest revenue - taxable equivalent  $ 61,317  $ 57,617  $ 58,332  $ 56,967  $ 54,950
Taxable equivalent adjustment  (326)  (375)  (398)  (405)  (377)
Net interest revenue (GAAP)  $ 60,991  $ 57,242  $ 57,934  $ 56,562  $ 54,573
           
Total revenue reconciliation          
Total operating revenue  $ 77,683  $ 71,499  $ 71,355  $ 69,379  $ 66,893
Taxable equivalent adjustment  (326)  (375)  (398)  (405)  (377)
Total revenue (GAAP)  $ 77,357  $ 71,124  $ 70,957  $ 68,974  $ 66,516
           
Expense reconciliation          
Expenses - operating  $ 45,247  $ 43,061  $ 41,919  $ 41,364  $ 40,532
Merger-related charges  3,173  --   --   --   -- 
Expenses (GAAP)  $ 48,420  $ 43,061  $ 41,919  $ 41,364  $ 40,532
           
Income before taxes reconciliation          
Income before taxes - operating  $ 32,436  $ 28,438  $ 29,436  $ 28,015  $ 26,361
Taxable equivalent adjustment  (326)  (375)  (398)  (405)  (377)
Merger-related charges  (3,173)  --   --   --   -- 
Income before taxes (GAAP)  $ 28,937  $ 28,063  $ 29,038  $ 27,610  $ 25,984
           
Income tax expense reconciliation          
Income tax expense - operating  $ 12,447  $ 10,768  $ 11,189  $ 10,399  $ 10,004
Taxable equivalent adjustment  (326)  (375)  (398)  (405)  (377)
Merger-related charges, tax benefit  (997)  --   --   --   -- 
Income tax expense (GAAP)  $ 11,124  $ 10,393  $ 10,791  $ 9,994  $ 9,627
           
Net income reconciliation          
Net income - operating  $ 19,989  $ 17,670  $ 18,247  $ 17,616  $ 16,357
Merger-related charges, net of income tax benefit  (2,176)  --   --   --   -- 
Net income (GAAP)  $ 17,813  $ 17,670  $ 18,247  $ 17,616  $ 16,357
           
Net income available to common shareholders reconciliation        
Net income available to common shareholders - operating  $ 19,972  $ 17,670  $ 18,247  $ 17,616  $ 16,357
Merger-related charges, net of income tax benefit  (2,176)  --   --   --   -- 
Net income available to common shareholders (GAAP)  $ 17,796  $ 17,670  $ 18,247  $ 17,616  $ 16,357
           
Diluted income per common share reconciliation          
Diluted income per common share - operating  $ .32  $ .29  $ .30  $ .29  $ .27
Merger-related charges  (.04)  --   --   --   -- 
Diluted income per common share (GAAP)  $ .28  $ .29  $ .30  $ .29  $ .27
           
Book value per common share reconciliation          
Tangible book value per common share  $ 12.66  $ 12.53  $ 12.15  $ 12.10  $ 11.91
Effect of goodwill and other intangibles  .29  .05  .05  .05  .03
Book value per common share (GAAP)  $ 12.95  $ 12.58  $ 12.20  $ 12.15  $ 11.94
           
Return on common equity reconciliation          
Return on common equity - operating  9.90%  9.34%  9.60%  9.41%  8.99%
Merger-related charges  (1.07)  --   --   --   -- 
Return on common equity (GAAP)  8.83%  9.34%  9.60%  9.41%  8.99%
           
Return on assets reconciliation          
Return on assets - operating  1.00%  .94%  .96%  .95%  .88%
Merger-related charges  (.11)  --   --   --   -- 
Return on assets (GAAP)  .89%  .94%  .96%  .95%  .88%
           
Dividend payout ratio reconciliation          
Dividend payout ratio - operating  15.63%  17.24%  16.67%  10.34%  11.11%
Merger-related charges  2.23  --   --   --   -- 
Dividend payout ratio (GAAP)  17.86%  17.24%  16.67%  10.34%  11.11%
           
Efficiency ratio reconciliation          
Efficiency ratio - operating  57.59%  59.15%  57.47%  57.96%  58.65%
Merger-related charges  4.04  --   --   --   -- 
Efficiency ratio (GAAP)  61.63%  59.15%  57.47%  57.96%  58.65%
           
Average equity to assets reconciliation          
Tangible common equity to assets 9.83% 9.82% 9.72% 9.83% 9.58%
Effect of preferred equity  .08  --   --   --   -- 
Tangible equity to assets  9.91  9.82  9.72  9.83  9.58
Effect of goodwill and other intangibles  .14  .04  .04  .02  .03
Equity to assets (GAAP)  10.05%  9.86%  9.76%  9.85%  9.61%
           
Tangible common equity to risk-weighted assets reconciliation (1)        
Tangible common equity to risk-weighted assets  13.24%  13.53%  13.82%  14.10%  13.92%
Effect of other comprehensive income  .28  .19  .35  .34  .53
Effect of deferred tax limitation  (2.46)  (2.86)  (3.11)  (3.39)  (3.74)
Effect of trust preferred  .63  .67  1.00  1.02  1.04
Effect of preferred equity  .17  --   --   --   -- 
Tier I capital ratio (Regulatory)  11.86%  11.53%  12.06%  12.07%  11.75%
           
(1) June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.
           
 
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
 
     
   For the Six Months Ended
(in thousands, except per share June 30
data; taxable equivalent) 2015 2014
     
Interest revenue reconciliation    
Interest revenue - taxable equivalent  $ 129,043  $ 122,278
Taxable equivalent adjustment  (701)  (734)
Interest revenue (GAAP)  $ 128,342  $ 121,544
     
Net interest revenue reconciliation    
Net interest revenue - taxable equivalent  $ 118,934  $ 109,119
Taxable equivalent adjustment  (701)  (734)
Net interest revenue (GAAP)  $ 118,233  $ 108,385
     
Total revenue reconciliation    
Total operating revenue  $ 149,182  $ 130,738
Taxable equivalent adjustment  (701)  (734)
Total revenue (GAAP)  $ 148,481  $ 130,004
     
Expense reconciliation    
Expenses - operating  $ 88,308  $ 79,582
Merger-related charges  3,173  -- 
Expenses (GAAP)  $ 91,481  $ 79,582
     
Income before taxes reconciliation    
Income before taxes - operating  $ 60,874  $ 51,156
Taxable equivalent adjustment  (701)  (734)
Merger-related charges  (3,173)  -- 
Income before taxes (GAAP)  $ 57,000  $ 50,422
     
Income tax expense reconciliation    
Income tax expense - operating  $ 23,215  $ 19,399
Taxable equivalent adjustment  (701)  (734)
Merger-related charges, tax benefit  (997)  -- 
Income tax expense (GAAP)  $ 21,517  $ 18,665
     
Net income reconciliation    
Net income - operating  $ 37,659  $ 31,757
Merger-related charges, net of income tax benefit  (2,176)  -- 
Net income (GAAP)  $ 35,483  $ 31,757
     
Net income available to common shareholders reconciliation  
Net income available to common shareholders - operating  $ 37,642  $ 31,318
Merger-related charges, net of income tax benefit  (2,176)  -- 
Net income available to common shareholders (GAAP)  $ 35,466  $ 31,318
     
Diluted income per common share reconciliation    
Diluted income per common share - operating  $ .61  $ .52
Merger-related charges  (.04)  -- 
Diluted income per common share (GAAP)  $ .57  $ .52
     
Book value per common share reconciliation    
Tangible book value per common share  $ 12.66  $ 11.91
Effect of goodwill and other intangibles  .29  .03
Book value per common share (GAAP)  $ 12.95  $ 11.94
     
Return on common equity reconciliation    
Return on common equity - operating  9.63%  8.82%
Merger-related charges  (.55)  -- 
Return on common equity (GAAP)  9.08%  8.82%
     
Return on assets reconciliation    
Return on assets - operating  .97%  .87%
Merger-related charges  (.05)  -- 
Return on assets (GAAP)  .92%  .87%
     
Dividend payout ratio reconciliation    
Dividend payout ratio - operating  16.39%  5.77%
Merger-related charges  1.15  -- 
Dividend payout ratio (GAAP)  17.54%  5.77%
     
Efficiency ratio reconciliation    
Efficiency ratio - operating  58.34%  58.85%
Merger-related charges  2.10  -- 
Efficiency ratio (GAAP)  60.44%  58.85%
     
Average equity to assets reconciliation    
Tangible common equity to assets 9.83% 9.40%
Effect of preferred equity  .04  .14
Tangible equity to assets  9.87  9.54
Effect of goodwill and other intangibles  .09  .02
Equity to assets (GAAP)  9.96%  9.56%
     
Tangible common equity to risk-weighted assets reconciliation (1)  
Tangible common equity to risk-weighted assets  13.24%  13.92%
Effect of other comprehensive income  .28  .53
Effect of deferred tax limitation  (2.46)  (3.74)
Effect of trust preferred  .63  1.04
Effect of preferred equity  .17  -- 
Tier I capital ratio (Regulatory)  11.86%  11.75%
     
(1) June 30, 2015 calculated under Basel III rules, which became effective January 1, 2015.
     
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
 
           
  2015 2014
   Second   First   Fourth   Third   Second 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE  $ 1,266  $ 1,167  $ 1,163  $ 1,153  $ 1,163
Income producing commercial RE  689  636  599  605  598
Commercial & industrial  793  716  710  650  554
Commercial construction  238  230  196  181  160
Total commercial  2,986  2,749  2,668  2,589  2,475
Residential mortgage  935  864  866  866  861
Home equity lines of credit  491  465  466  459  451
Residential construction  299  291  299  307  302
Consumer installment  463  419  373  348  321
Total loans  $ 5,174  $ 4,788  $ 4,672  $ 4,569  $ 4,410
           
LOANS BY MARKET          
North Georgia  $ 1,155  $ 1,150  $ 1,163  $ 1,168  $ 1,175
Atlanta MSA  1,317  1,296  1,282  1,289  1,305
North Carolina  533  539  553  553  555
Coastal Georgia  499  476  456  444  426
Gainesville MSA  257  255  257  254  257
East Tennessee  525  281  280  281  270
South Carolina / Specialized Lending  531  475  412  337  206
Indirect auto  357  316  269  243  216
Total loans  $ 5,174  $ 4,788  $ 4,672  $ 4,569  $ 4,410
           
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
 
           
  2015 2014 Linked Year over
   Second   First   Second  Quarter Year
(in millions) Quarter Quarter Quarter Change Change
LOANS BY CATEGORY          
Owner occupied commercial RE  $ 1,266  $ 1,167  $ 1,163  $ 99  $ 103
Income producing commercial RE  689  636  598  53  91
Commercial & industrial  793  716  554  77  239
Commercial construction  238  230  160  8  78
Total commercial  2,986  2,749  2,475  237  511
Residential mortgage  935  864  861  71  74
Home equity lines of credit  491  465  451  26  40
Residential construction  299  291  302  8  (3)
Consumer installment  463  419  321  44  142
Total loans  $ 5,174  $ 4,788  $ 4,410  386  764
           
LOANS BY MARKET          
North Georgia  $ 1,155  $ 1,150  $ 1,175  5  (20)
Atlanta MSA  1,317  1,296  1,305  21  12
North Carolina  533  539  555  (6)  (22)
Coastal Georgia  499  476  426  23  73
Gainesville MSA  257  255  257  2  -- 
East Tennessee  525  281  270  244  255
South Carolina / Specialized Lending  531  475  206  56  325
Indirect auto  357  316  216  41  141
Total loans  $ 5,174  $ 4,788  $ 4,410  386  764
           
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
 
       
  Second Quarter 2015
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE  $ 4,878  $ 360  $ 5,238
Income producing CRE  883  --   883
Commercial & industrial  1,389  --   1,389
Commercial construction  59  382  441
Total commercial  7,209  742  7,951
Residential mortgage  8,599  1,373  9,972
Home equity lines of credit  940  54  994
Residential construction  1,358  187  1,545
Consumer installment  699  --   699
Total NPAs  $ 18,805  $ 2,356  $ 21,161
Balance as a % of Unpaid Principal 64.9% 46.6% 62.2%
       
NONPERFORMING ASSETS BY MARKET      
North Georgia  $ 6,157  $ 657  $ 6,814
Atlanta MSA  2,361  135  2,496
North Carolina  4,746  690  5,436
Coastal Georgia  659  --   659
Gainesville MSA  864  22  886
East Tennessee  1,885  852  2,737
South Carolina / Specialized Lending  1,565  --   1,565
Indirect auto  568  --   568
Total NPAs  $ 18,805  $ 2,356  $ 21,161
       
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 19,015  $ 1,158  $ 20,173
Acquisitions  --   962  962
Loans placed on non-accrual  6,552  --   6,552
Payments received  (3,839)  --   (3,839)
Loan charge-offs  (1,854)  --   (1,854)
Foreclosures  (1,069)  1,069  -- 
Capitalized costs  --   --   -- 
Property sales  --   (895)  (895)
Write downs  --   (9)  (9)
Net gains (losses) on sales  --   71  71
Ending Balance  $ 18,805  $ 2,356  $ 21,161
       
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
 
       
  First Quarter 2015
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY    
Owner occupied CRE  $ 4,360  $ 173  $ 4,533
Income producing CRE  835  --   835
Commercial & industrial  1,629  --   1,629
Commercial construction  60  --   60
Total commercial  6,884  173  7,057
Residential mortgage  8,669  796  9,465
Home equity lines of credit  693  50  743
Residential construction  2,127  139  2,266
Consumer installment  642  --   642
Total NPAs  $ 19,015  $ 1,158  $ 20,173
Balance as a % of Unpaid Principal 72.0% 56.6% 70.9%
       
NONPERFORMING ASSETS BY MARKET    
North Georgia  $ 6,101  $ 662  $ 6,763
Atlanta MSA  1,903  227  2,130
North Carolina  5,321  159  5,480
Coastal Georgia  901  --   901
Gainesville MSA  781  22  803
East Tennessee  1,808  30  1,838
South Carolina / Specialized Lending  1,700  58  1,758
Indirect auto  500  --   500
Total NPAs  $ 19,015  $ 1,158  $ 20,173
       
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 17,881  $ 1,726  $ 19,607
Acquisitions  --   --   -- 
Loans placed on non-accrual  5,944  --   5,944
Payments received  (1,513)  --   (1,513)
Loan charge-offs  (2,838)  --   (2,838)
Foreclosures  (459)  459  -- 
Capitalized costs  --   --   -- 
Property sales  --   (1,108)  (1,108)
Write downs  --   (166)  (166)
Net gains (losses) on sales  --   247  247
Ending Balance  $ 19,015  $ 1,158  $ 20,173
       
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
 
       
  Fourth Quarter 2014
   Nonperforming   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 / Specialized Lending  1,285  22  1,307
Indirect auto  346  --   346
Total NPAs  $ 17,881  $ 1,726  $ 19,607
       
       
NONPERFORMING ASSETS ACTIVITY      
Beginning Balance  $ 18,745  $ 3,146  $ 21,891
Acquisitions  --   --   -- 
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
       
 
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
 
             
  Second Quarter 2015 First Quarter 2015 Fourth 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 (1) Charge-Offs Loans (1) Charge-Offs Loans (1)
NET CHARGE-OFFS BY CATEGORY            
Owner occupied CRE  $ 285  .09%  $ 357  .12%  $ 891  .31%
Income producing CRE  (276)  (.17)  241  .16  143  .09
Commercial & industrial  (627)  (.33)  341  .19  (295)  (.17)
Commercial construction  96  .16  22  .04  (6)  (.01)
Total commercial  (522)  (.07)  961  .14  733  .11
Residential mortgage  787  .35  416  .20  1,226  .56
Home equity lines of credit  322  .27  59  .05  238  .20
Residential construction  107  .14  1,061  1.46  (44)  (.06)
Consumer installment  284  .26  65  .07  356  .39
Total  $ 978  .08  $ 2,562  .22  $ 2,509  .22
             
             
NET CHARGE-OFFS BY MARKET            
North Georgia  $ 911  .32%  $ 1,053  .37%  $ 791  .27%
Atlanta MSA  (234)  (.07)  188  .06  147  .05
North Carolina  176  .13  666  .49  1,103  .79
Coastal Georgia  (40)  (.03)  134  .12  30  .03
Gainesville MSA  (233)  (.36)  (65)  (.10)  94  .15
East Tennessee  127  .11  471  .68  54  .08
South Carolina / Specialized Lending  148  .12  --   --   110  .11
Indirect auto  123  .14  115  .16  180  .29
Total  $ 978  .08  $ 2,562  .22  $ 2,509  .22
             
(1) Annualized.
 
 
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) 2015 2014 2015 2014
         
Interest revenue:        
Loans, including fees  $ 52,976  $ 48,261  $ 102,640  $ 95,949
Investment securities, including tax exempt of $181, $193, $339 and $381  12,037  12,165  24,095  23,772
Deposits in banks and short-term investments  795  980  1,607  1,823
Total interest revenue  65,808  61,406  128,342  121,544
         
Interest expense:        
Deposits:        
NOW  348  411  742  851
Money market  806  757  1,479  1,320
Savings  26  21  46  41
Time  895  2,018  2,004  3,789
Total deposit interest expense  2,075  3,207  4,271  6,001
Short-term borrowings  82  908  180  1,748
Federal Home Loan Bank advances  454  80  846  138
Long-term debt  2,206  2,638  4,812  5,272
Total interest expense  4,817  6,833  10,109  13,159
Net interest revenue  60,991  54,573  118,233  108,385
Provision for credit losses  900  2,200  2,700  4,700
Net interest revenue after provision for credit losses  60,091  52,373  115,533  103,685
         
Fee revenue:        
Service charges and fees  8,375  8,527  15,990  16,425
Mortgage loan and other related fees  3,707  1,877  6,462  3,231
Brokerage fees  1,232  1,245  2,783  2,422
Gains from sales of SBA loans  1,494  744  2,635  744
Securities gains, net  13  4,435  1,552  4,652
Loss from prepayment of debt  --  (4,446)  (1,038)  (4,446)
Other  2,445  1,761  4,564  3,291
Total fee revenue  17,266  14,143  32,948  26,319
Total revenue  77,357  66,516  148,481  130,004
         
Operating expenses:        
Salaries and employee benefits  27,961  24,287  54,407  48,683
Communications and equipment  3,304  3,037  6,575  6,276
Occupancy  3,415  3,262  6,693  6,640
Advertising and public relations  1,127  1,139  1,877  1,765
Postage, printing and supplies  993  804  1,931  1,580
Professional fees  2,257  2,172  4,176  3,599
FDIC assessments and other regulatory charges  1,298  1,425  2,507  2,778
Merger-related charges  3,173  --  3,173  --
Other  4,892  4,406  10,142  8,261
Total operating expenses  48,420  40,532  91,481  79,582
Net income before income taxes  28,937  25,984  57,000  50,422
Income tax expense  11,124  9,627  21,517  18,665
Net income  17,813  16,357  35,483  31,757
Preferred stock dividends and discount accretion  17  --   17  439
Net income available to common shareholders  $ 17,796  $ 16,357  $ 35,466  $ 31,318
         
Earnings per common share:        
Basic  $ .28  $ .27  $ .57  $ .52
Diluted  .28  .27  .57  .52
Weighted average common shares outstanding:        
Basic  62,549  60,712  61,730  60,386
Diluted  62,553  60,714  61,734  60,388
         
 
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
 
  June 30, December 31, June 30,
(in thousands, except share and per share data) 2015 2014 2014
       
ASSETS      
Cash and due from banks  $ 80,865  $ 77,180  $ 91,791
Interest-bearing deposits in banks  94,032  89,074  100,270
Short-term investments  30,000  26,401  47,999
Cash and cash equivalents  204,897  192,655  240,060
Securities available for sale  1,942,319  1,782,734  1,741,268
Securities held to maturity (fair value $388,066, $425,233 and $458,864)  379,757  415,267  448,752
Mortgage loans held for sale  22,003  13,737  14,918
Loans, net of unearned income  5,173,517  4,672,119  4,410,285
Less allowance for loan losses  (70,129)  (71,619)  (73,248)
Loans, net  5,103,388  4,600,500  4,337,037
Premises and equipment, net  173,313  159,390  161,614
Bank owned life insurance  92,952  81,294  80,922
Accrued interest receivable  21,030  20,103  19,141
Net deferred tax asset  195,746  215,503  233,149
Derivative financial instruments  21,728  20,599  22,024
Goodwill and other intangible assets  20,190  3,641  2,731
Other assets  68,980  61,563  50,450
Total assets  $ 8,246,303  $ 7,566,986  $ 7,352,066
LIABILITIES AND SHAREHOLDERS' EQUITY      
Liabilities:      
Deposits:      
Demand  $ 1,847,696  $ 1,574,317  $ 1,519,635
NOW  1,416,279  1,504,887  1,334,883
Money market  1,406,352  1,273,283  1,245,912
Savings  350,049  292,308  279,203
Time:      
Less than $100,000  792,300  748,478  805,289
Greater than $100,000  465,347  508,228  554,310
Brokered  529,920  425,011  424,313
Total deposits  6,807,943  6,326,512  6,163,545
Short-term borrowings  25,000  6,000  76,256
Federal Home Loan Bank advances  385,125  270,125  175,125
Long-term debt  113,901  129,865  129,865
Derivative financial instruments  32,374  31,997  36,545
Unsettled securities purchases  --  5,425  7,264
Accrued expenses and other liabilities  54,728  57,485  41,497
Total liabilities  7,419,071  6,827,409  6,630,097
Shareholders' equity:      
Preferred stock, $1 par value; 10,000,000 shares authorized; Series H; $1,000 stated value; 9,992 shares issued and outstanding  9,992  --   -- 
Common stock, $1 par value; 100,000,000 shares authorized; 54,414,863, 50,178,605 and 50,058,295 shares issued and outstanding  54,415  50,178  50,058
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 8,285,516, 10,080,787 and 10,080,787 shares issued and outstanding  8,286  10,081  10,081
Common stock issuable; 413,014, 357,983 and 314,039 shares  6,071  5,168  4,649
Capital surplus  1,123,730  1,080,508  1,091,780
Accumulated deficit  (358,294)  (387,568)  (418,583)
Accumulated other comprehensive loss  (16,968)  (18,790)  (16,016)
Total shareholders' equity  827,232  739,577  721,969
Total liabilities and shareholders' equity  $ 8,246,303  $ 7,566,986  $ 7,352,066
       
 
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
 
  2015 2014
   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)  $ 5,017,306  $ 53,081 4.24%  $ 4,376,174  $ 48,435 4.44%
Taxable securities (3)  2,235,561  11,856 2.12  2,306,457  11,972 2.08
Tax-exempt securities (1)(3)  25,685  296 4.61  19,592  316 6.45
Federal funds sold and other interest-earning assets  165,643  901 2.18  158,418  1,060 2.68
             
Total interest-earning assets  7,444,195  66,134 3.56  6,860,641  61,783 3.61
Non-interest-earning assets:            
Allowance for loan losses  (71,006)      (76,843)    
Cash and due from banks  77,124      63,853    
Premises and equipment  167,926      161,443    
Other assets (3)  398,356      408,768    
Total assets  $ 8,016,595      $ 7,417,862    
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW  $ 1,419,142  348 .10  $ 1,356,141  411 .12
Money market  1,607,665  806 .20  1,361,045  757 .22
Savings  335,093  26 .03  275,540  21 .03
Time less than $100,000  774,193  791 .41  818,048  933 .46
Time greater than $100,000  474,905  482 .41  563,489  865 .62
Brokered time deposits  276,073  (378) (.55)  334,919  220 .26
Total interest-bearing deposits  4,887,071  2,075 .17  4,709,182  3,207 .27
             
Federal funds purchased and other borrowings  47,698  82 .69  108,311  908 3.36
Federal Home Loan Bank advances  289,707  454 .63  154,795  80 .21
Long-term debt  113,901  2,206 7.77  129,865  2,638 8.15
Total borrowed funds  451,306  2,742 2.44  392,971  3,626 3.70
             
Total interest-bearing liabilities  5,338,377  4,817 .36  5,102,153  6,833 .54
Non-interest-bearing liabilities:            
Non-interest-bearing deposits  1,782,405      1,477,849    
Other liabilities  90,091      125,173    
Total liabilities  7,210,873      6,705,175    
Shareholders' equity  805,722      712,687    
Total liabilities and shareholders' equity  $ 8,016,595      $ 7,417,862    
             
Net interest revenue    $ 61,317      $ 54,950  
Net interest-rate spread     3.20%     3.07%
             
Net interest margin (4)     3.30%     3.21%
             
(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 $18.9 million in 2015 and pretax unrealized gains of $1.86 million in 2014 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 Six Months Ended June 30,
 
  2015 2014
   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)  $ 4,872,112  $ 102,946 4.26%  $ 4,365,930  $ 96,303 4.45%
Taxable securities (3)  2,211,293  23,756 2.15  2,303,404  23,391 2.03
Tax-exempt securities (1)(3)  20,987  555 5.29  19,881  624 6.28
Federal funds sold and other interest-earning assets  153,597  1,786 2.33  154,651  1,960 2.53
             
Total interest-earning assets  7,257,989  129,043 3.58  6,843,866  122,278 3.60
Non-interest-earning assets:            
Allowance for loan losses  (71,596)      (77,165)    
Cash and due from banks  78,069      62,958    
Premises and equipment  163,737      162,112    
Other assets (3)  389,874      409,466    
Total assets  $ 7,818,073      $ 7,401,237    
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW  $ 1,447,370  742 .10  $ 1,385,964  851 .12
Money market  1,537,678  1,479 .19  1,368,975  1,320 .19
Savings  317,814  46 .03  267,588  41 .03
Time less than $100,000  755,826  1,515 .40  847,707  1,946 .46
Time greater than $100,000  484,624  1,146 .48  570,799  1,783 .63
Brokered time deposits  274,708  (657) (.48)  311,579  60 .04
Total interest-bearing deposits  4,818,020  4,271 .18  4,752,612  6,001 .25
             
Federal funds purchased and other borrowings  41,953  180 .87  110,436  1,748 3.19
Federal Home Loan Bank advances  264,584  846 .64  140,014  138 .20
Long-term debt  120,782  4,812 8.03  129,865  5,272 8.19
Total borrowed funds  427,319  5,838 2.76  380,315  7,158 3.80
             
Total interest-bearing liabilities  5,245,339  10,109 .39  5,132,927  13,159 .52
Non-interest-bearing liabilities:            
Non-interest-bearing deposits  1,702,140      1,439,447    
Other liabilities  92,138      120,943    
Total liabilities  7,039,617      6,693,317    
Shareholders' equity  778,456      707,920    
Total liabilities and shareholders' equity  $ 7,818,073      $ 7,401,237    
             
Net interest revenue    $ 118,934      $ 109,119  
Net interest-rate spread     3.19%     3.08%
             
Net interest margin (4)     3.30%     3.21%
             
(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 $14.8 million in 2015 and pretax unrealized losses of $1.37 million in 2014 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: For more information:

         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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