United Community Banks, Inc.
Oct 27, 2015

United Community Banks, Inc. Reports Net Operating Income of $21.7 Million for Third Quarter 2015, Up 23 Percent From a Year Ago



BLAIRSVILLE, Ga., Oct. 27, 2015 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today reported net operating income of $21.7 million for the third quarter of 2015, up 23 percent from a year ago.  Operating earnings per diluted share was 33 cents, up 14 percent from a year ago.  The increase reflects strong loan, core deposit and fee revenue growth, 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 $17.9 million for the third quarter, or 27 cents per diluted share. 

For the first nine months of 2015, United reported net income of $53.4 million, or 84 cents per diluted share.  Excluding merger-related charges, net operating income was $59.4 million, or 94 cents per diluted share.

"I am very pleased with our third quarter financial performance, which reflects the successful execution of our strategic plans," said Jimmy Tallent, chairman and chief executive officer.  "I'm especially proud that we completed the merger with Palmetto and welcomed their banking team to the United family.

"Total loan production remained strong in the third quarter, though net loan growth tapered off a bit due to a higher level of pay-downs," Tallent continued.  "Year-to-date, excluding loans from mergers, loan growth is $310 million, or 9 percent annualized, which is on track for our 2015 goal of mid-to-upper-single-digit loan growth.   These new loans have been funded with solid core transaction deposit growth of $519 million, or 19 percent annualized, excluding mergers. 

"Third quarter net loan growth of $53 million, excluding the Palmetto merger, was driven by loan production of $452 million across all United markets," added Tallent.  "Our community banks originated $256 million in loan production while our specialized lending area, which includes corporate, SBA, asset-based, middle market and commercial real estate lending, produced $150 million. Healthcare lending was part of specialized lending and we recently announced the sale of this $190 million corporate healthcare lending unit, which is expected to close by mid-fourth quarter 2015."  

Third quarter taxable-equivalent net interest revenue totaled $65.7 million, up $4.40 million from the second quarter of 2015 and up $8.75 million from the third quarter of 2014.  Core deposit growth contributed to net interest revenue with a linked-quarter increase of $204 million, or 19 percent annualized, excluding deposits acquired in the merger.  United's Atlanta and North Georgia markets drove most of the growth.

"The acquisition of Palmetto added approximately $3.30 million to third quarter net interest revenue while loan growth accounted for the balance of the increase, which was offset partially by margin compression," said Tallent.  "The taxable-equivalent net interest margin of 3.26 percent was down four basis points from the second quarter, and down six basis points from a year ago, reflecting higher debt costs for the funding of the Palmetto acquisition, continued competitive loan pricing pressures, and a shift toward more floating rate loans."

The third quarter provision for credit losses was $700 thousand, down $200 thousand from the second quarter and down $1.3 million from the third quarter of 2014.  Third quarter net charge-offs were $1.42 million compared with $978 thousand in the second quarter and $3.16 million a year ago.  Strong recoveries of previously charged-off loans drove net charge-offs down in the second and third quarters of 2015 compared with third quarter 2014.  Nonperforming assets were .29 percent of total assets at quarter-end, compared with .26 percent in the second quarter and .29 percent a year ago.

Third quarter fee revenue totaled $18.3 million, up $1.03 million from the second quarter and $3.89 million from the third quarter of 2014.  Much of the increase resulted from the acquisition of Palmetto, mostly in the form of deposit service charges and mortgage fees.  Total service charges and fees were $9.34 million, up $960 thousand from the second quarter and up $1.13 million from a year ago.  Mortgage fees of $3.84 million were up $133 thousand from the second quarter and up $1.66 million from a year ago reflecting strong growth in home purchases and an increase in refinancing activities.  Closed mortgage loans totaled $141 million in the third quarter of 2015, compared with $128 million in the second quarter and $84 million in the third quarter of 2014.  During the third quarter, sales of $17.8 million in SBA loans resulted in net gains of $1.65 million.  This compares with $14.7 million in loans sold and net gains of $1.49 million in the second quarter of 2015, and $7.4 million in loans sold and net gains of $945 thousand in the third quarter of 2014.

"We remain committed to diversifying our revenue stream by focusing on fee-generating products and services," stated Tallent.  "Our growing SBA lending business and commitment to expanding our mortgage origination business are key parts of this emphasis."

Operating expenses, excluding merger-related charges of $5.74 million, were $48.5 million in the third quarter. This compares to $45.2 million in the second quarter of 2015 and $41.4 million in the third quarter of 2014.  The September 1 acquisition of Palmetto Bancshares and its wholly owned subsidiary, The Palmetto Bank, added approximately $2.70 million to third quarter operating expenses.  The May 1 acquisition of First National Bank added approximately $1.70 million to both third and second quarter operating expenses.  Operating expenses from both acquired banks are expected to decline as anticipated cost savings are realized.

Third quarter salaries and employee benefits expense totaled $29.3 million, up $1.38 million from the second quarter and $3.68 million from a year ago.  The linked-quarter increase reflects $1.1 million in additional compensation expense for the two acquired companies.  The increase from a year ago reflects the acquisitions, investment in new producers and support staff for the specialized lending area, as well as higher commissions and incentives associated with growth in mortgage loans, commercial loans and core deposits. 

Third quarter other operating expenses totaled $5.54 million, up $650 thousand from the second quarter and up $1.54 million from the third quarter of 2014.  Nearly half of the linked-quarter increase in other expenses was due to higher intangible amortization costs from the two acquisitions.  Most of the remaining linked-quarter increase reflected higher ATM network and lending support costs, while the increase from a year ago was due to higher lending support costs and an increase in servicing fees for the growing indirect auto loan portfolio.

"Palmetto merged into United on September 1 and its operating results are included in United's from that date forward," noted Tallent.  "System conversions are targeted for the first quarter of 2016.  First National Bank merged into United on May 1 and, during the third quarter, we successfully converted their operating systems to United and consolidated six of the combined United / FNB banking offices.  All FNB banking offices now operate under the name of United Community Bank."

At September 30, 2015, preliminary capital ratios were as follows: Tier 1 Risk-Based of 11.0 percent; Total Risk-Based of 12.1 percent; Tier 1 Common Risk-Based of 11.0 percent; and, Tier 1 Leverage of 8.2 percent.

"All of our regulatory capital ratios remain strong, though they have declined slightly from the prior quarter due to the acquisition of Palmetto," commented Tallent.  "During mid-August, we financed the cash portion of the Palmetto acquisition with the issuance of $85 million Senior Notes that had an average interest rate of 5.2 percent.  Additionally, on September 15, to partially offset these higher funding costs, we redeemed $32 million of trust preferred securities with an average rate of 8.4 percent.

"Our third quarter results put us well on track to complete another remarkable year," Tallent said. "In the second quarter we achieved our earlier goal of a 1 percent operating return on assets.  Our new goal, driven by continued solid mid-to-high single-digit loan growth, is 1.10 percent for the fourth quarter of 2016.

"We are excited about executing our growth strategies to expand the franchise and add value for shareholders," concluded Tallent.  "We warmly and enthusiastically welcome First National and Palmetto to the United team.  And, as always, we are dedicated every day to taking care of 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, Tuesday, October 27, 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 56009033.  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.

Investor Day Conference - October 8, 2015
On October 8, 2015, United held an Investor Day Conference in Atlanta, Georgia for its analysts and institutional investors.  United's executive and senior management presented the company's business, growth and market strategies through a series of presentations and panel discussions.  The conference was web cast on Events & Presentations from its Investor Relations page of the company's' website, www.ucib.com, and will remain available for replay for one year.

About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.4 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 133 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations.  United Community Bank offers a full range of consumer and commercial banking services including 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              
               
           Third  
  2015   2014  Quarter  
(in thousands, except per share Third   Second   First   Fourth   Third  2015-2014  
data; taxable equivalent)Quarter Quarter Quarter Quarter Quarter Change  
INCOME SUMMARY              
Interest revenue$71,120  $66,134  $62,909  $64,353  $63,338       
Interest expense 5,402   4,817    5,292   6,021   6,371      
Net interest revenue  65,718   61,317   57,617   58,332   56,967   15 %  
Provision for credit losses 700   900   1,800   1,800   2,000      
Fee revenue 18,297   17,266   15,682   14,823   14,412   27    
Total revenue 83,315   77,683   71,499   71,355   69,379   20    
Expenses - operating  (1) 48,525   45,247   43,061   41,919   41,364   17    
Income before income tax expense - operating (1) 34,790   32,436   28,438   29,436   28,015   24    
Income tax expense - operating  (1) 13,064   12,447   10,768    11,189   10,399   26    
Net income - operating  (1) 21,726   19,989   17,670   18,247   17,616   23    
Preferred dividends and discount accretion 25   17   -   -   -      
Net income available to common shareholders - operating  (1) 21,701   19,972   17,670   18,247   17,616   23    
Merger-related charges, net of income tax benefit 3,839   2,176   -   -   -      
Net income available to common shareholders - GAAP$17,862  $17,796  $17,670  $18,247  $17,616   1    
               
PERFORMANCE MEASURES              
Per common share:              
Diluted income - operating  (1)$.33  $.32  $.29  $.30  $.29   14    
Diluted income - GAAP .27   .28   .29   .30   .29   (7)   
Cash dividends declared  .06   .05   .05   .05   .03      
Book value 13.95   12.95   12.58   12.20   12.15   15    
Tangible book value (3) 12.08   12.66   12.53   12.15   12.10   -    
               
Key performance ratios:              
Return on tangible common equity - operating (1)(2)(3)(4) 10.29 % 10.20 % 9.46 %  9.74 % 9.55 %   
Return on common equity - operating (1)(2)(4)  9.54   9.90   9.34   9.60   9.41       
Return on common equity - GAAP (2)(4) 7.85   8.83   9.34   9.60   9.41      
Return on assets - operating (1)(4) 1.00   1.00   .94   .96   .95      
Return on assets - GAAP (4) .82   .89   .94   .96   .95      
Dividend payout ratio - operating (1) 18.18   15.63   17.24   16.67   10.34      
Dividend payout ratio - GAAP 22.22   17.86   17.24    16.67   10.34      
Net interest margin (4) 3.26   3.30   3.31   3.31   3.32      
Efficiency ratio - operating  (1) 57.81   57.59   59.15   57.47   57.96      
Efficiency ratio - GAAP 64.65   61.63   59.15   57.47   57.96      
Average equity to average assets 10.39   10.05   9.86   9.76   9.85      
Average tangible equity to average assets (3) 9.88   9.91   9.82   9.72   9.83      
Average tangible common equity to average assets (3) 9.77   9.83   9.82   9.72   9.83      
Tangible common equity to risk-weighted assets (3)(5)(6) 12.68   13.24   13.53   13.82   14.10      
               
ASSET QUALITY               
Nonperforming loans$20,064  $18,805  $19,015  $17,881  $18,745   7    
Foreclosed properties 7,669   2,356   1,158   1,726   3,146   144    
Total nonperforming assets (NPAs) 27,733   21,161   20,173   19,607   21,891   27    
Allowance for loan losses 69,062   70,129   70,007   71,619   71,928      
Net charge-offs 1,417   978   2,562   2,509   3,155   (55)   
Allowance for loan losses to loans 1.15 % 1.36 % 1.46 % 1.53 % 1.57 %    
Allowance for loan losses to loans, excl. acquired loans 1.37   1.42   1.46   1.53   1.57      
Net charge-offs to average loans (4) .10   .08   .22   .22   .28      
NPAs to loans and foreclosed properties .46   .41    .42   .42   .48      
NPAs to total assets .29   .26   .26   .26   .29      
               
AVERAGE BALANCES ($ in millions)              
Loans$5,457  $5,017   $4,725  $4,621  $4,446   23    
Investment securities 2,396   2,261   2,203   2,222   2,231   7    
Earning assets 8,009   7,444   7,070   7,013   6,820   17    
Total assets 8,634   8,017   7,617   7,565   7,374   17    
Deposits 7,135   6,669   6,369   6,383   6,143   16    
Shareholders' equity 897   806   751   738   726   24    
Common shares - basic (thousands) 66,294   62,549   60,905   60,830   60,776   9    
Common shares - diluted (thousands) 66,300   62,553   60,909   60,833   60,779   9    
               
AT PERIOD END ($ in millions)              
Loans$6,022  $5,174  $4,788  $4,672  $4,569   32    
Investment securities 2,457   2,322   2,201   2,198   2,222   11    
Total assets 9,414   8,246   7,664   7,567   7,526   25    
Deposits 7,905   6,808   6,438   6,327   6,241   27    
Shareholders' equity 1,013   827   764   740    736   38    
Common shares outstanding (thousands)  71,472   62,700   60,309   60,259   60,248   19    
                
(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) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015(6)  Third quarter 2015 ratio is preliminary. 
               

 

UNITED COMMUNITY BANKS, INC.        
Financial Highlights        
Selected Financial Information        
         
  For the Nine   
  Months Ended YTD 
(in thousands, except per share September 30, 2015-2014 
data; taxable equivalent)  2015   2014  Change 
INCOME SUMMARY        
Interest revenue $200,163  $185,616     
Interest expense  15,511   19,530     
Net interest revenue  184,652   166,086   11 % 
Provision for credit losses   3,400   6,700     
Fee revenue  51,245   40,731   26   
Total revenue  232,497   200,117   16   
Expenses - operating  (1)  136,833   120,946    13   
Income before income tax expense - operating (1)  95,664   79,171   21   
Income tax expense - operating  (1)  36,279   29,798   22   
Net income - operating  (1)   59,385   49,373   20   
Preferred dividends and discount accretion  42   439     
Net income available to common shareholders - operating  (1)  59,343   48,934   21   
Merger-related charges, net of income tax benefit  6,015   -     
Net income available to common shareholders - GAAP $53,328  $48,934   9   
         
PERFORMANCE MEASURES        
Per common share:        
Diluted income - operating  (1) $.94  $.81   16   
Diluted income - GAAP  .84   .81   4   
Cash dividends declared  .16   .06     
Book value  13.95   12.15   15   
Tangible book value (3)  12.08   12.10   -   
         
Key performance ratios:        
Return on tangible common equity - operating (1)(2)(3)(4)  10.00 % 9.18 %  
Return on common equity - operating (1)(2)(4)  9.60   9.02     
Return on common equity - GAAP (2)(4)  8.63   9.02      
Return on assets - operating (1)(4)  .98   .89     
Return on assets - GAAP (4)  .88   .89     
Dividend payout ratio - operating (1)  17.02   7.41     
Dividend payout ratio - GAAP  19.05   7.41     
Net interest margin (4)  3.29   3.25     
Efficiency ratio - operating  (1)  58.15   58.54     
Efficiency ratio - GAAP  61.94   58.54     
Average equity to average assets   10.11   9.66     
Average tangible equity to average assets (3)  9.88   9.64     
Average tangible common equity to average assets (3)  9.81   9.55     
Tangible common equity to risk-weighted assets (3)(5)(6)  12.68   14.10     
         
ASSET QUALITY        
Nonperforming loans $20,064  $18,745    7   
Foreclosed properties  7,669   3,146     144   
Total nonperforming assets (NPAs)  27,733   21,891    27   
Allowance for loan losses  69,062   71,928     
Net charge-offs  4,957   11,369    (56 )  
Allowance for loan losses to loans  1.15 % 1.57 %   
Allowance for loan losses to loans, excl. acquired loans  1.37   1.57     
Net charge-offs to average loans (4)  .13   .35     
NPAs to loans and foreclosed properties  .46   .48     
NPAs to total assets  .29   .29      
         
AVERAGE BALANCES ($ in millions)        
Loans $5,069  $4,393   15   
Investment securities  2,288   2,292   -   
Earning assets  7,511   6,836   10   
Total assets  8,093   7,392   9    
Deposits  6,727   6,176   9   
Shareholders' equity  818   714   15   
Common shares - basic (thousands)  63,297   60,511   5   
Common shares - diluted (thousands)  63,302    60,513   5   
         
AT PERIOD END ($ in millions)        
Loans $6,022  $4,569   32   
Investment securities  2,457   2,222   11   
Total assets  9,414   7,526   25   
Deposits  7,905   6,241   27   
Shareholders' equity  1,013   736   38   
Common shares outstanding (thousands)  71,472   60,248    19   
         
(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) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015(6)  Third quarter 2015 ratio is preliminary. 

 

UNITED COMMUNITY BANKS, INC.           
Non-GAAP Performance Measures Reconciliation         
Selected Financial Information           
           
           
  2015   2014  
(in thousands, except per share Third   Second   First   Fourth   Third  
data; taxable equivalent)Quarter Quarter Quarter Quarter Quarter 
           
Interest revenue reconciliation           
Interest revenue - taxable equivalent$71,120   $66,134  $62,909  $64,353  $63,338  
Taxable equivalent adjustment (292)  (326)  (375)  (398)  (405 ) 
Interest revenue (GAAP)$70,828  $65,808  $62,534  $ 63,955  $62,933  
           
Net interest revenue reconciliation          
Net interest revenue - taxable equivalent$65,718  $61,317  $57,617  $58,332  $56,967  
Taxable equivalent adjustment (292)  (326)  (375)  (398)  (405) 
Net interest revenue (GAAP)$65,426  $60,991  $57,242  $57,934  $56,562  
           
Total revenue reconciliation          
Total operating revenue$83,315  $77,683  $71,499  $71,355  $69,379  
Taxable equivalent adjustment (292)  (326)  (375)  (398)  (405) 
Total revenue (GAAP)$83,023  $77,357  $71,124  $70,957  $68,974  
           
Expense reconciliation           
Expenses - operating$48,525  $45,247  $43,061  $41,919  $41,364  
Merger-related charges 5,744   3,173   -   -    -  
Expenses (GAAP)$54,269  $48,420  $43,061   $41,919  $41,364  
           
Income before taxes reconciliation          
Income before taxes - operating$34,790  $32,436   $28,438  $29,436  $28,015  
Taxable equivalent adjustment (292)  (326)  (375)  (398)  (405) 
Merger-related charges (5,744)  (3,173)  -   -   -  
Income before taxes (GAAP)$28,754  $28,937  $28,063   $29,038  $27,610  
           
Income tax expense reconciliation          
Income tax expense - operating$13,064  $12,447   $10,768  $11,189  $10,399  
Taxable equivalent adjustment (292)  (326)  (375)  (398)  (405) 
Merger-related charges, tax benefit (1,905)  (997)  -   -   -  
Income tax expense (GAAP)$10,867  $11,124  $10,393   $10,791  $9,994  
           
Net income reconciliation           
Net income - operating$21,726  $19,989  $17,670  $18,247  $17,616  
Merger-related charges, net of income tax benefit (3,839)  (2,176)  -   -   -  
Net income (GAAP)$17,887  $17,813  $17,670  $18,247  $17,616  
           
Net income available to common shareholders reconciliation         
Net income available to common shareholders - operating$21,701  $19,972  $17,670  $18,247  $17,616  
Merger-related charges, net of income tax benefit (3,839)  (2,176)  -   -    -  
Net income available to common shareholders (GAAP)$17,862  $17,796  $17,670  $18,247  $17,616  
           
Diluted income per common share reconciliation           
Diluted income per common share - operating$.33  $.32  $.29  $.30   $.29  
Merger-related charges (.06)  (.04)  -   -   -  
Diluted income per common share (GAAP)$.27  $ .28  $.29  $.30  $.29  
            
Book value per common share reconciliation           
Tangible book value per common share$12.08  $12.66  $12.53  $12.15  $12.10  
Effect of goodwill and other intangibles 1.87   .29   .05   .05   .05  
Book value per common share (GAAP)$13.95  $12.95  $12.58   $12.20  $12.15  
           
Return on tangible common equity reconciliation          
Return on tangible common equity - operating 10.29 % 10.20 % 9.46 % 9.74 % 9.55 %
Effect of goodwill and other intangibles (.75)  (.30)  (.12)  (.14)  (.14) 
Return on common equity - operating 9.54   9.90   9.34   9.60    9.41  
Merger-related charges (1.69)  (1.07)  -   -   -  
Return on common equity (GAAP) 7.85 % 8.83 % 9.34 % 9.60 % 9.41 %
           
Return on assets reconciliation          
Return on assets - operating 1.00 %  1.00 % .94 % .96 % .95 %
Merger-related charges (.18)  (.11)  -   -   -  
Return on assets (GAAP) .82 % .89 % .94 % .96 % .95  %
           
Allowance for loan losses to loans reconciliation          
Allowance for loan losses to loans, excl. acquired loans 1.37 % 1.42 % 1.46 % 1.53 % 1.57 %
Effect of removing acquired loans from ratio (.22)  (.06)  -   -   -  
Allowance for loan losses to loans (GAAP) 1.15 % 1.36 % 1.46 % 1.53 % 1.57 %
            
Dividend payout ratio reconciliation          
Dividend payout ratio - operating 18.18 %  15.63 % 17.24 % 16.67 % 10.34 %
Merger-related charges 4.04   2.23   -    -   -  
Dividend payout ratio (GAAP) 22.22 % 17.86 % 17.24 % 16.67 % 10.34 %
           
Efficiency ratio reconciliation          
Efficiency ratio - operating 57.81 % 57.59 % 59.15 % 57.47 % 57.96 %
Merger-related charges 6.84   4.04   -   -   -  
Efficiency ratio (GAAP) 64.65 % 61.63 % 59.15 % 57.47 % 57.96 %
           
Average equity to assets reconciliation           
Tangible common equity to assets 9.77 % 9.83  % 9.82 % 9.72 % 9.83 %
Effect of preferred equity .11   .08   -   -   -  
Tangible equity to assets 9.88   9.91   9.82   9.72   9.83  
Effect of goodwill and other intangibles .51   .14   .04   .04   .02  
Equity to assets (GAAP) 10.39 % 10.05 % 9.86  % 9.76 % 9.85 %
           
Tangible common equity to risk-weighted assets reconciliation (1)         
Tangible common equity to risk-weighted assets 12.68 % 13.24 % 13.53 % 13.82 % 14.10 %
Effect of other comprehensive income .22   .28   .19   .35    .34  
Effect of deferred tax limitation .08   (2.49)  (2.86)  (3.11)  (3.39) 
Effect of trust preferred .15   .63   .67    1.00   1.02  
Effect of preferred equity (2.20)  .17   -   -   -  
Basel III intangibles transition adjustment .12   .06   .04   -   -  
Basel III disallowed investments (.02)  (.03  (.04  -   -  
Tier I capital ratio (Regulatory) 11.03 % 11.86 % 11.53 % 12.06 % 12.07 %
           
(1)  September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Third quarter 2015 ratios are preliminary. 
            

 

UNITED COMMUNITY BANKS, INC.     
Non-GAAP Performance Measures Reconciliation    
Selected Financial Information     
      
      
  For the Nine Months Ended
September 30, 
  
(in thousands, except per share  
data; taxable equivalent) 2015   2014   
      
Interest revenue reconciliation     
Interest revenue - taxable equivalent$200,163  $185,616   
Taxable equivalent adjustment (993)  (1,139)  
Interest revenue (GAAP)$199,170  $184,477   
      
Net interest revenue reconciliation     
Net interest revenue - taxable equivalent$184,652  $166,086   
Taxable equivalent adjustment (993)  (1,139)  
Net interest revenue (GAAP)$183,659  $164,947   
      
Total revenue reconciliation     
Total operating revenue$232,497  $200,117   
Taxable equivalent adjustment (993)  (1,139)  
Total revenue (GAAP)$231,504  $198,978   
      
Expense reconciliation     
Expenses - operating$136,833   $120,946   
Merger-related charges 8,917   -   
Expenses (GAAP)$145,750  $120,946   
       
Income before taxes reconciliation     
Income before taxes - operating$95,664   $79,171   
Taxable equivalent adjustment (993)  (1,139)  
Merger-related charges (8,917)  -   
Income before taxes (GAAP)$85,754  $78,032   
      
Income tax expense reconciliation     
Income tax expense - operating$36,279  $29,798   
Taxable equivalent adjustment (993)  (1,139)  
Merger-related charges, tax benefit (2,902)  -   
Income tax expense (GAAP)$32,384  $28,659   
      
Net income reconciliation     
Net income - operating$59,385  $49,373   
Merger-related charges, net of income tax benefit (6,015)  -   
Net income (GAAP)$53,370  $49,373   
      
Net income available to common shareholders reconciliation    
Net income available to common shareholders - operating$59,343  $48,934   
Merger-related charges, net of income tax benefit (6,015)  -   
Net income available to common shareholders (GAAP)$53,328  $48,934   
      
Diluted income per common share reconciliation     
Diluted income per common share - operating$.94  $.81   
Merger-related charges (.10)  -   
Diluted income per common share (GAAP)$.84  $.81   
      
Book value per common share reconciliation     
Tangible book value per common share$12.08  $12.10   
Effect of goodwill and other intangibles  1.87   .05   
Book value per common share (GAAP)$13.95  $12.15   
      
Return on tangible common equity reconciliation     
Return on tangible common equity - operating 10.00 % 9.18 % 
Effect of goodwill and other intangibles (.40)  (.16)  
Return on common equity - operating 9.60   9.02   
Merger-related charges (.97)   -   
Return on common equity (GAAP) 8.63 % 9.02 % 
      
Return on assets reconciliation     
Return on assets - operating .98 % .89 % 
Merger-related charges (.10)  -   
Return on assets (GAAP) .88 % .89  % 
      
Allowance for loan losses to loans reconciliation     
Allowance for loan losses to loans, excl. acquired loans 1.37 % 1.57 % 
Effect of removing acquired loans from ratio (.22)  -   
Allowance for loan losses to loans (GAAP) 1.15 % 1.57 % 
      
Dividend payout ratio reconciliation      
Dividend payout ratio - operating 17.02 % 7.41 % 
Merger-related charges 2.03   -   
Dividend payout ratio (GAAP) 19.05 % 7.41 % 
      
Efficiency ratio reconciliation     
Efficiency ratio - operating 58.15 % 58.54 % 
Merger-related charges 3.79   -    
Efficiency ratio (GAAP) 61.94 %  58.54 % 
      
Average equity to assets reconciliation     
Tangible common equity to assets 9.81 % 9.55 % 
Effect of preferred equity .07   .09   
Tangible equity to assets 9.88   9.64   
Effect of goodwill and other intangibles .23   .02   
Equity to assets (GAAP) 10.11 % 9.66 % 
      
Tangible common equity to risk-weighted assets reconciliation (1)    
Tangible common equity to risk-weighted assets 12.68 % 14.10 % 
Effect of other comprehensive income .22   .34   
Effect of deferred tax limitation .08    (3.39)  
Effect of trust preferred .15   1.02   
Effect of preferred equity (2.20)  -   
Basel III intangibles transition adjustment .12    -   
Basel III disallowed investments (.02)  -    
Tier I capital ratio (Regulatory) 11.03 % 12.07 % 
      
(1)  September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Third quarter 2015 ratios are preliminary.  
      

 

UNITED COMMUNITY BANKS, INC.       
Financial Highlights          
Loan Portfolio Composition at Period-End      
           
           
   2015
  2014
   Third   Second   First   Fourth   Third 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE $1,479  $1,266  $1,167  $1,163  $1,153 
Income producing commercial RE  818   689   636   599   605 
Commercial & industrial  890   793   716   710   650 
Commercial construction  319   238   230   196   181 
Total commercial  3,506   2,986   2,749   2,668   2,589 
Residential mortgage  1,060   935   864   866   866 
Home equity lines of credit  585   491   465   466   459 
Residential construction  334   299   291   299   307 
Consumer installment  537   463   419   373   348 
Total loans  $6,022  $5,174  $4,788  $4,672  $4,569 
           
LOANS BY MARKET           
North Georgia $1,128  $1,155  $1,150  $1,163  $1,168 
Atlanta MSA  1,266   1,275   1,254   1,243   1,245 
North Carolina  546   533   539   553    553 
Coastal Georgia  506   499   476   456   444 
Gainesville MSA  252   257   255   257   254 
East Tennessee  511   525   281   280   281 
South Carolina  783   35   30   30   21 
Specialized Lending  609   538   487   421   360 
Indirect auto  421   357   316   269   243 
Total loans $6,022   $5,174  $4,788  $4,672  $4,569  
           

 

UNITED COMMUNITY BANKS, INC.        
Financial Highlights            
Loan Portfolio Composition at Period-End       
            
            
   2015
  2014 Linked Year over
    Third   Second    Third   Quarter  Year
(in millions) Quarter Quarter Quarter   Change Change 
LOANS BY CATEGORY           
Owner occupied commercial RE $  1,479  $  1,266   $  1,153  $  213  $  326 
Income producing commercial RE    818     689      605     129     213 
Commercial & industrial    890     793      650     97      240 
Commercial construction    319     238      181     81     138 
Total commercial    3,506     2,986      2,589     520     917 
Residential mortgage    1,060     935      866     125     194 
Home equity lines of credit    585     491      459     94     126 
Residential construction    334     299      307     35     27 
Consumer installment    537     463      348     74     189 
Total loans $  6,022  $  5,174   $  4,569     848     1,453 
            
LOANS BY MARKET            
North Georgia $  1,128  $  1,155   $  1,168     (27)    (40)
Atlanta MSA    1,266     1,275      1,245     (9)    21 
North Carolina    546     533      553     13      (7)
Coastal Georgia    506     499      444     7      62 
Gainesville MSA    252     257      254     (5)    (2)
East Tennessee    511     525      281     (14)    230 
South Carolina    783     35      21     748     762 
Specialized Lending    609     538      360      71     249 
Indirect auto    421     357      243     64     178 
Total loans $  6,022  $  5,174   $  4,569     848     1,453 
            
            

 

UNITED COMMUNITY BANKS, INC.      
Financial Highlights         
Credit Quality         
          
          
  Third Quarter 2015
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY      
Owner occupied CRE $5,918  $882  $6,800 
Income producing CRE  1,238   4,084   5,322 
Commercial & industrial  1,068   -   1,068 
Commercial construction  256   657   913 
Total commercial  8,480   5,623   14,103 
Residential mortgage   8,847   1,454   10,301 
Home equity lines of credit  890   87    977 
Residential construction  929   505   1,434 
Consumer installment  918   -   918 
Total NPAs $20,064  $7,669  $27,733 
Balance as a % of         
Unpaid Principal  70.3%  45.8%  61.2%
          
NONPERFORMING ASSETS BY MARKET       
North Georgia $6,403  $1,263  $7,666 
Atlanta MSA  1,750   1,122   2,872 
North Carolina  4,564   9   4,573 
Coastal Georgia  338   66   404 
Gainesville MSA  325   3   328 
East Tennessee  2,886   231   3,117 
South Carolina  267   4,975   5,242 
Specialized Lending  2,809   -   2,809 
Indirect auto  722   -   722 
Total NPAs $20,064  $7,669  $27,733 
          
          
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $18,805  $2,356  $21,161 
Acquisitions  -   4,848   4,848 
Loans placed on non-accrual  8,923   -   8,923 
Payments received  (4,233)  -   (4,233)
Loan charge-offs  (1,531)  -   (1,531)
Foreclosures  (1,900)  1,900   - 
Capitalized costs  -    256   256 
Property sales  -   (1,916)  (1,916)
Write downs  -   (79)  (79)
Net gains (losses) on sales  -   304   304 
Ending Balance $20,064  $7,669  $27,733 
           

 

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    -      36     36 
Specialized Lending    1,700     22     1,722 
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                               
                               
                               
  Third Quarter 2015 Second Quarter 2015 First Quarter 2015     
    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 $236  .07 % $285  .09 % $357   .12 %        
Income producing CRE  (106) (.06)   (276) (.17)   241  .16           
Commercial & industrial  190  .09    (627) (.33)     341  .19          
Commercial construction  59  .09    96  .16    22  .04          
Total commercial  379  .05    (522) (.07)   961  .14          
Residential mortgage  433  .18    787  .35    416  .20          
Home equity lines of credit  293  .22    322   .27    59  .05           
Residential construction  (124) (.16)   107  .14    1,061  1.46          
Consumer installment  436  .35    284  .26    65  .07          
Total $1,417  .10   $978  .08   $2,562  .22          
                               
                               
NET CHARGE-OFFS BY MARKET                            
North Georgia $1,352  .47 % $911  .32 % $1,053  .37 %        
Atlanta MSA  74  .02    138  .04    204  .07          
North Carolina  183  .13    176  .13    666  .49          
Coastal Georgia  19  .02    (40) (.03)   134  .12          
Gainesville MSA  (236) (.36)   (233) (.36)   (65) (.10)         
East Tennessee  153   .12    127  .11     471  .68          
South Carolina  (247) (.34)   -  -    -  -           
Specialized Lending  (42) (.03)   (224) (.17)   (16) (.01)          
Indirect auto  161   .17    123  .14    115  .16           
Total $1,417  .10   $978  .08   $2,562  .22          
                         
(1)  Annualized.          

 

UNITED COMMUNITY BANKS, INC.         
Consolidated Statement of Income (Unaudited)         
          
  Three Months Ended Nine Months Ended 
  September 30, September 30, 
(in thousands, except per share data)  2015    2014   2015    2014  
          
Interest revenue:         
Loans, including fees $57,174  $49,653  $159,814  $145,602  
Investment securities, including tax exempt of $177, $177, $516 and $558  12,801   12,346   36,896   36,118  
Deposits in banks and short-term investments  853   934   2,460   2,757  
Total interest revenue  70,828   62,933   199,170   184,477  
          
Interest expense:         
Deposits:         
NOW  337   365   1,079   1,216  
Money market  981   872   2,460   2,192  
Savings  25   20   71   61  
Time  830   1,721   2,834   5,510  
Total deposit interest expense  2,173   2,978   6,444   8,979  
Short-term borrowings  99   316   279   2,064  
Federal Home Loan Bank advances  461    435   1,307    573  
Long-term debt  2,669   2,642   7,481   7,914  
Total interest expense  5,402   6,371   15,511   19,530  
Net interest revenue  65,426    56,562   183,659   164,947  
Provision for credit losses  700   2,000   3,400   6,700  
Net interest revenue after provision for credit losses  64,726   54,562    180,259   158,247  
          
Fee revenue:         
Service charges and fees  9,335   8,202   25,325   24,627  
Mortgage loan and other related fees  3,840   2,178   10,302   5,409  
Brokerage fees   1,200   1,209   3,983   3,631  
Gains from sales of SBA loans  1,646   945   4,281   1,689  
Securities gains, net  325   11   1,877   4,663  
Loss from prepayment of debt  (256)  -   (1,294)  (4,446) 
Other  2,207   1,867   6,771   5,158  
Total fee revenue  18,297    14,412   51,245   40,731  
Total revenue  83,023   68,974   231,504   198,978  
          
Operating expenses:          
Salaries and employee benefits  29,342   25,666   83,749   74,349  
Communications and equipment  3,963   3,094   10,538   9,370  
Occupancy  4,013   3,425   10,706   10,065  
Advertising and public relations  812   894   2,689   2,659  
Postage, printing and supplies  1,049   876   2,980   2,456  
Professional fees  2,668   2,274   6,844   5,873  
FDIC assessments and other regulatory charges  1,136   1,131   3,643    3,909  
Merger-related charges  5,744   -   8,917   -  
Other  5,542   4,004   15,684   12,265  
Total operating expenses  54,269   41,364   145,750   120,946  
Net income before income taxes  28,754   27,610   85,754   78,032  
Income tax expense  10,867   9,994   32,384   28,659  
Net income  17,887   17,616   53,370   49,373  
Preferred stock dividends and discount accretion  25   -   42   439  
Net income available to common shareholders $17,862  $17,616  $53,328  $48,934  
          
Earnings per common share:         
Basic $ .27  $.29  $.84  $.81  
Diluted  .27   .29   .84   .81  
Weighted average common shares outstanding:         
Basic  66,294   60,776   63,297   60,511  
Diluted  66,300   60,779   63,302   60,513  
          

 

UNITED COMMUNITY BANKS, INC.      
Consolidated Balance Sheet (Unaudited)      
        
  September 30, December 31, September 30,
(in thousands, except share and per share data)  2015   2014   2014 
        
ASSETS      
Cash and due from banks $93,975  $77,180  $75,268 
Interest-bearing deposits in banks  112,964   89,074   117,399 
Short-term investments  -    26,401   23,397 
Cash and cash equivalents  206,939   192,655   216,064 
Securities available for sale  2,099,868   1,782,734   1,789,667 
Securities held to maturity (fair value $368,096, $425,233 and $440,311)  357,549   415,267    432,418 
Mortgage loans held for sale  24,279    13,737   20,004 
Loans, net of unearned income  6,022,394   4,672,119   4,568,886 
Less allowance for loan losses   (69,062)  (71,619)  (71,928)
Loans, net  5,953,332   4,600,500   4,496,958 
Premises and equipment, net  192,992   159,390   160,454 
Bank owned life insurance  105,368   81,294   81,101 
Accrued interest receivable  24,563   20,103   19,908 
Net deferred tax asset  197,116    215,503   224,734 
Derivative financial instruments  19,906   20,599   22,221 
Goodwill and other intangible assets  141,415   3,641   3,910 
Other assets  90,669   61,563   58,450 
Total assets $9,413,996  $7,566,986  $7,525,889 
LIABILITIES AND SHAREHOLDERS' EQUITY      
Liabilities:      
Deposits:      
Demand $2,174,799  $1,574,317  $1,561,020 
NOW  1,754,614   1,504,887   1,399,449 
Money market  1,651,592   1,273,283   1,281,526 
Savings  459,323   292,308   287,797 
Time:      
Less than $100,000  865,369   748,478   774,201 
Greater than $100,000   482,567   508,228   531,428 
Brokered  516,748    425,011   405,308 
Total deposits  7,905,012   6,326,512   6,240,729 
Short-term borrowings  18,839   6,000   6,001 
Federal Home Loan Bank advances  200,125   270,125   330,125 
Long-term debt  165,620   129,865   129,865 
Derivative financial instruments  27,401   31,997   36,171 
Unsettled securities purchases  -   5,425   - 
Accrued expenses and other liabilities  83,862   57,485    46,573 
Total liabilities  8,400,859   6,827,409   6,789,464 
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;      
63,186,437, 50,178,605 and 50,167,191 shares issued and outstanding   63,186   50,178   50,167 
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; 454,870, 357,983 and 354,961 shares  6,670   5,168   5,116 
Capital surplus  1,284,877   1,080,508   1,091,555 
Accumulated deficit  (344,746)   (387,568)  (402,773)
Accumulated other comprehensive loss  (15,128)  (18,790)  (17,721)
Total shareholders' equity  1,013,137   739,577    736,425 
Total liabilities and shareholders' equity $9,413,996  $7,566,986  $7,525,889 
       

 

UNITED COMMUNITY BANKS, INC.             
Average Consolidated Balance Sheets and Net Interest Analysis          
For the Three Months Ended September 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)$  5,457,158  $  57,258 4.16 %  $  4,445,947  $  49,853 4.45% 
Taxable securities (3)   2,367,417     12,624 2.13      2,212,116     12,169 2.20  
Tax-exempt securities (1)(3)   28,889     290 4.02      18,794     290 6.17  
Federal funds sold and other interest-earning assets   155,957     948 2.43      143,169     1,026 2.87  
               
Total interest-earning assets   8,009,421     71,120 3.53      6,820,026     63,338 3.69  
Non-interest-earning assets:             
Allowance for loan losses   (71,090)         (74,146)     
Cash and due from banks   80,678          71,224      
Premises and equipment   179,463          161,315      
Other assets (3)   435,060          395,184      
Total assets$  8,633,532       $  7,373,603       
              
Liabilities and Shareholders' Equity:             
Interest-bearing liabilities:             
Interest-bearing deposits:             
NOW$  1,491,801     337 .09   $  1,331,806      365 .11  
Money market   1,737,740     981 .22      1,387,042      872 .25  
Savings   386,254     25 .03      282,746     20 .03  
Time less than $100,000    793,755     708 .35      791,289     876 .44  
Time greater than $100,000   484,074     447 .37      542,216     827 .61  
Brokered time deposits   268,716     (325)(.48)     278,330     18 .03  
Total interest-bearing deposits   5,162,340     2,173 .17       4,613,429     2,978 .26  
              
Federal funds purchased and other borrowings   72,909     99 .54      53,713     316 2.33  
Federal Home Loan Bank advances   281,429     461 .65      227,190     435 .76  
Long-term debt   152,105     2,669 6.96      129,865     2,642 8.07  
Total borrowed funds   506,443     3,229 2.53      410,768     3,393 3.28  
              
Total interest-bearing liabilities   5,668,783     5,402  .38      5,024,197     6,371 .50  
Non-interest-bearing liabilities:             
Non-interest-bearing deposits   1,972,291          1,530,011      
Other liabilities   95,342          92,986       
Total liabilities   7,736,416          6,647,194      
Shareholders' equity   897,116          726,409      
Total liabilities and shareholders' equity$  8,633,532       $  7,373,603      
              
Net interest revenue  $  65,718       $  56,967    
Net interest-rate spread   3.15 %    3.19% 
              
Net interest margin (4)   3.26 %    3.32% 
              
(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 $8.56 million in 2015 and pretax unrealized gains of $7.42 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 Nine Months Ended September 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)$  5,069,270  $  160,204 4.23 %  $  4,392,895  $  146,156