United Community Banks, Inc.
Oct 26, 2016

United Community Banks, Inc. Announces Third Quarter Earnings

Diluted earnings per share up 33 percent to 36 cents from third quarter 2015
Excluding merger-related charges, diluted operating EPS up 18 percent to 39 cents

BLAIRSVILLE, Ga., Oct. 26, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced continued momentum in the third quarter with strong fee revenue and loan growth, as well as sound credit quality and capital management.  Net income grew to $25.9 million, or 36 cents per diluted share, compared with $17.9 million, or 27 cents per diluted share, for the third quarter of 2015.  Net income for the first nine months of 2016 was $73.4 million, or $1.02 per diluted share.  This compares with net income of $53.4 million, or 84 cents per diluted share, for the first nine months of 2015.

On an operating basis, net income rose to $27.8 million for the third quarter of 2016 compared with $21.7 million for the third quarter of 2015. Operating net income excludes pre-tax merger-related charges of $3.15 million in the third quarter of 2016 and $5.74 million in the third quarter of 2015. On a per diluted share basis, operating net income was 39 cents for the third quarter of 2016 compared with 33 cents for the third quarter of 2015.  For the first nine months of 2016, operating net income was $77.8 million, or $1.08 per diluted share, compared with $59.3 million, or 94 cents per diluted share, for the first nine months of 2015.

At September 30, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.1 percent; Total Risk-Based of 11.9 percent; Common Equity Tier 1 Risk-Based of 11.1 percent; and, Tier 1 Leverage of 8.4 percent.

"Our third quarter results underscore the positive momentum from our investments in new businesses and markets," said Jimmy Tallent, chairman and chief executive officer.  "Our mortgage banking business continued to produce record quarterly results which, combined with strong performance from our SBA business and solid customer derivative sales, led to a 44 percent increase in fee revenue from a year ago."

The third quarter's return on assets was 1.00 percent including the effect of merger-related charges of $3.15 million.  Exclusive of these charges, the operating return on assets for the third quarter was 1.08 percent.

Tallent noted the positive impact of the Tidelands Bancshares acquisition, which was completed on July 1, 2016.  "As expected, the acquisition was immediately accretive to earnings per share," he said.  "Systems conversions are scheduled to take place in November, after which we expect to achieve the remaining targeted cost savings. The Tidelands acquisition is meeting or exceeding objectives consistent with our coastal South Carolina expansion strategy and I could not be more pleased with the results.

"Third quarter loan production was $641 million," Tallent added.  "Excluding acquired loans from Tidelands, linked-quarter growth of $133 million, or 8 percent annualized, was within our 2016 loan growth target of mid-to-upper single-digit.  Our community banks originated $436 million in loans while specialized lending produced $166 million.  United's specialized lending area encompasses commercial real estate, middle market, SBA, builder finance and asset-based lending.  Funding these loans was strong linked-quarter core transaction deposit growth of $254 million, or 19 percent annualized, excluding Tidelands.  Core deposits comprise 90 percent of total deposits, which is one of the best ratios in the country."

Third quarter net interest revenue totaled $79.0 million, up $4.1 million from the second quarter and up $13.6 million from the third quarter of 2015.  The increase from both periods reflects growth in the loan portfolio as well as net interest revenue from recent acquisitions.

The taxable-equivalent net interest margin of 3.34 percent, while one basis point lower than the second quarter, was up eight basis points from the third quarter of 2015. The decrease from second quarter was expected and resulted mostly from loan pricing competition.

The third quarter provision for credit losses was a recovery of $300,000, equal to the second quarter of 2016.  It was down from a provision charge of $700,000 in the third quarter of 2015.  Strong recoveries of previously charged-off loans continued to contribute to the low level of net charge-offs.  Third quarter net charge-offs totaled $1.4 million, compared with $1.7 million in the second quarter and $1.4 million in the third quarter of 2015.  Nonperforming assets were .30 percent of total assets at September 30, 2016, compared with .28 percent at June 30, 2016 and .29 percent at September 30, 2015.

"The recoveries of our provisions reflect continued strong credit quality and a low overall level of net charge-offs," Tallent commented.  "Our credit quality indicators are very favorable and our outlook is for positive credit quality in the fourth quarter and into 2017.  This will result in low provision levels that we expect will gradually increase with loan growth through 2017, while slightly decreasing our allowance and the related ratio to total loans."

Third quarter fee revenue totaled $26.4 million, an increase of $2.86 million from the second quarter and up $8.06 million from a year ago.  Mortgage fees were up $1.59 million from the second quarter and $2.20 million from a year ago. Customer derivative fees also contributed to the increase in fee revenue from both prior periods.  Gains from sales of SBA loans were up $833,000 from a year ago, but down $322,000 from the second quarter due to slightly lower premiums and loans sold.

"The increase in mortgage fees correlates to our strategic investment in additional mortgage lenders where we see opportunities to gain market share and higher spreads on loan sales," Tallent said.  "Although production of SBA loans remained high, $32 million of loans were sold in the third quarter compared to $33 million during the second quarter, but up from $17.8 million during the third quarter of 2015."

Operating expenses were $64.0 million for the third quarter, compared with $58.1 million for the second quarter and $54.3 million for the third quarter of 2015.  Included in operating expenses were merger-related charges of $3.15 million for the third quarter, $1.18 million for the second quarter and $5.74 million for the third quarter of 2015.  Excluding these charges, third quarter operating expenses were $60.9 million compared with $56.9 million for the second quarter and $48.5 million a year ago.  The increases from the second quarter and a year ago reflect additional operating expenses following the acquisitions of Tidelands Bank on July 1, 2016 and The Palmetto Bank on September 1, 2015.  The operating expenses of the acquired companies are included in United's financial results beginning on their respective acquisition dates.

Excluding merger-related charges of $3.15 million in the third quarter, operating expenses were $60.9 million and up $3.99 million from the second quarter. The inclusion of Tidelands' $2.76 million of operating expense accounted for 70 percent of the linked-quarter increase in operating expenses. The balance of the increase was primarily due to higher salary costs for commissions and incentives related to truing-up the quarter and year-to-date for performance targets.

"Our bankers continue to perform exceptionally well as we build on the successes of investing to grow our franchise and earnings," Tallent said. "We take tremendous pride that our bankers provide the best in customer service by treating customers the way we would want to be treated.  This is at the foundation of our success and the core of everything we do.  With strong earnings momentum and a high-quality balance sheet, I am optimistic about our future," Tallent concluded.

Conference Call
United will hold a conference call today, Wednesday, October 26, 2016, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter.  To access the call, dial (877) 380-5665 and use the conference number 86742023.  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. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia, with $10.3 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 140 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in providing personalized community banking services to individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management.  United Community Bank is consistently recognized for its outstanding customer service by respected national research firms.  In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and again in 2016 was ranked among the top 100 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

Non-GAAP Financial Measures
This News Release contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP.  This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as "operating net income," "operating net income per diluted share," "tangible book value," "operating return on common equity," "operating return on tangible common equity," "operating return on assets," "operating dividend payout ratio," "operating efficiency ratio," "average tangible equity to average assets," "average tangible common equity to average assets" and "tangible common equity to risk-weighted assets."  These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United's underlying performance trends.  These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.  To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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 2015 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
 2016 2015
 Quarter
  Third   Second   First    Fourth   Third  2016-2015
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  Change
INCOME SUMMARY            
Interest revenue$85,439  $81,082   $80,721  $79,362  $70,828    
Interest expense 6,450    6,164   5,769   5,598   5,402    
Net interest revenue 78,989   74,918   74,952   73,764   65,426   21 %
Provision for credit losses (300)  (300)  (200)  300   700    
Fee revenue 26,361   23,497   18,606   21,284   18,297   44  
Total revenue 105,650   98,715   93,758   94,748   83,023   27  
Expenses 64,023   58,060   57,885   65,488    54,269   18  
Income before income tax expense 41,627   40,655   35,873   29,260   28,754   45  
Income tax expense 15,753   15,389   13,578   11,052   10,867   45  
Net income 25,874   25,266   22,295   18,208   17,887   45  
Preferred dividends -   -   21   25   25    
Net income available to common shareholders$   25,874   $   25,266   $   22,274   $   18,183   $   17,862       45   
Merger-related and other charges 3,152   1,176   2,653   9,078   5,744    
Income tax benefit of merger-related and other charges (1,193)   (445)  (1,004)  (3,486)  (1,905)   
Net income available to common shareholders - operating (1)$   27,833   $   25,997   $   23,923   $    23,775   $   21,701      28   
             
PERFORMANCE MEASURES             
Per common share:            
Diluted net income - GAAP$.36  $.35  $.31  $.25  $.27   33  
Diluted net income - operating  (1) .39   .36   .33   .33   .33   18  
Cash dividends declared .08   .07    .07   .06   .06    
Book value 15.12   14.80   14.35   14.02   13.95   8  
Tangible book value (3) 13.00   12.84   12.40   12.06   12.08   8  
             
Key performance ratios:            
Return on common equity - GAAP (2)(4) 9.61 % 9.54 % 8.57 % 7.02 % 7.85 %    
Return on common equity - operating (1)(2)(4) 10.34   9.81   9.20   9.18   9.54    
Return on tangible common equity - operating (1)(2)(3)(4) 12.45   11.56   10.91   10.87   10.29    
Return on assets - GAAP (4) 1.00   1.04   .93   .76   .82    
Return on assets - operating (1)(4) 1.08   1.07   1.00   .99   1.00    
Dividend payout ratio - GAAP 22.22   20.00   22.58   24.00   22.22    
Dividend payout ratio - operating (1) 20.51   19.44   21.21   18.18   18.18    
Net interest margin (fully taxable equivalent) (4) 3.34   3.35   3.41   3.34   3.26    
Efficiency ratio - GAAP 60.78   59.02   61.94   68.97   64.65     
Efficiency ratio - operating  (1) 57.79   57.82    59.10   59.41   57.81    
Average equity to average assets 10.38   10.72   10.72   10.68   10.39    
Average tangible equity to average assets (3) 8.98   9.43   9.41   9.40   9.88    
Average tangible common equity to average assets (3) 8.98   9.43   9.32   9.29   9.77    
Tangible common equity to risk-weighted assets (3)(5) 12.26   12.87   12.77   12.82   13.08    
             
ASSET QUALITY            
Nonperforming loans$21,572  $21,348   $22,419  $22,653  $20,064   8  
Foreclosed properties 9,187   6,176    5,163   4,883   7,669   20  
Total nonperforming assets (NPAs) 30,759    27,524   27,582   27,536   27,733   11  
Allowance for loan losses 62,961   64,253   66,310   68,448   69,062   (9) 
Net charge-offs 1,359   1,730   2,138   1,302   1,417   (4) 
Allowance for loan losses to loans 0.94 % 1.02 % 1.09 % 1.14 % 1.15 %  
Net charge-offs to average loans (4) .08   .11   .14   .09   .10    
NPAs to loans and foreclosed properties .46   .44   .45   .46   .46    
NPAs to total assets .30   .28   .28   .29   .29    
             
AVERAGE BALANCES ($ in millions)            
Loans$6,675  $6,151  $6,004  $5,975  $5,457   22  
Investment securities 2,610   2,747   2,718   2,607   2,396   9  
Earning assets 9,443   9,037   8,876   8,792   8,009   18  
Total assets 10,281   9,809   9,634   9,558   8,634   19  
Deposits 8,307   7,897   7,947   8,028   7,135   16  
Shareholders' equity 1,067   1,051   1,033   1,021   897   19  
Common shares - basic (thousands) 71,556   72,202   72,162   72,135   66,294   8  
Common shares - diluted (thousands) 71,561   72,207   72,166   72,140   66,300   8  
             
AT PERIOD END ($ in millions)            
Loans$6,725  $6,287  $6,106  $5,995  $6,024   12  
Investment securities 2,560   2,677   2,757   2,656   2,457   4  
Total assets 10,298   9,928   9,781   9,616   9,404   10  
Deposits 8,442   7,857   7,960   7,873   7,897   7  
Shareholders' equity 1,079   1,060   1,034   1,018   1,013   7  
Common shares outstanding (thousands) 70,861   71,122   71,544   71,484   71,472   (1) 
             
(1)  Excludes merger-related charges and fourth quarter impairment losses on surplus bank property.  (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)  Third quarter 2016 ratio is preliminary.
             

 

        
UNITED COMMUNITY BANKS, INC.       
Financial Highlights       
Selected Financial Information       
         
 For the Nine   
 Months Ended YTD 
 September 30, 2016-2015 
(in thousands, except per share data) 2016   2015   Change 
INCOME SUMMARY       
Interest revenue$  247,242  $  199,170     
Interest expense   18,383     15,511     
Net interest revenue   228,859     183,659     25 % 
Provision for credit losses   (800)    3,400     
Fee revenue   68,464     51,245     34   
Total revenue   298,123     231,504     29   
Expenses   179,968     145,750     23   
Income before income tax expense   118,155     85,754     38   
Income tax expense   44,720     32,384     38   
Net income   73,435     53,370     38   
Preferred dividends   21     42     
Net income available to common shareholders$   73,414   $   53,328      38    
Merger-related and other charges   6,981     8,917     
Income tax benefit of merger-related and other charges   (2,642)    (2,902)    
Net income available to common shareholders - operating (1)$   77,753   $   59,343      31    
        
PERFORMANCE MEASURES       
Per common share:       
Diluted net income - GAAP$  1.02   $  .84     21   
Diluted net income - operating  (1)   1.08   .94     15   
Cash dividends declared .22   .16     
Book value   15.12     13.95     8   
Tangible book value (3)   13.00     12.08     8   
Key performance ratios:       
Return on common equity - GAAP (2)(4)   9.25 %   8.63 %  
Return on common equity - operating (1)(2)(4)   9.79     9.60     
Return on tangible common equity - operating (1)(2)(3)(4)   11.64     10.00     
Return on assets - GAAP (4) .99   .88     
Return on assets - operating (1)(4)   1.05   .98     
Dividend payout ratio - GAAP   21.57     19.05     
Dividend payout ratio - operating (1)   20.37     17.02     
Net interest margin (fully taxable equivalent) (4)   3.36     3.29     
Efficiency ratio - GAAP   60.56     61.94      
Efficiency ratio - operating  (1)   58.21     58.15     
Average equity to average assets 10.60   10.11     
Average tangible equity to average assets (3) 9.27   9.88     
Average tangible common equity to average assets (3) 9.24   9.81     
Tangible common equity to risk-weighted assets (3)(5)    12.26   13.08     
        
ASSET QUALITY       
Nonperforming loans$  21,572  $  20,064     8   
Foreclosed properties   9,187     7,669     20   
Total nonperforming assets (NPAs)   30,759     27,733     11   
Allowance for loan losses   62,961     69,062      (9)  
Net charge-offs   5,227     4,957     5   
Allowance for loan losses to loans 0.94  1.15    
Net charge-offs to average loans (4) .11   .13     
NPAs to loans and foreclosed properties .46   .46     
NPAs to total assets .30   .29     
          
AVERAGE BALANCES ($ in millions)         
Loans$  6,278  $  5,069     24   
Investment securities   2,692     2,288     18   
Earning assets   9,120     7,511     21   
Total assets   9,909     8,093     22   
Deposits   8,051     6,727     20   
Shareholders' equity   1,051      818     28   
Common shares - basic (thousands)   71,992     63,297     14   
Common shares - diluted (thousands)   71,996     63,302     14   
              
AT PERIOD END ($ in millions)              
Loans$  6,725  $  6,024     12   
Investment securities   2,560     2,457     4   
Total assets    10,298     9,404     10   
Deposits   8,442     7,897     7   
Shareholders' equity   1,079     1,013     7   
Common shares outstanding (thousands)   70,861     71,472     (1)  
        
(1)  Excludes merger-related charges and fourth quarter impairment losses on surplus bank property.  (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)  Third quarter 2016 ratio is preliminary. 
         

 

           
UNITED COMMUNITY BANKS, INC.          
Non-GAAP Performance Measures Reconciliation          
Selected Financial Information          
           
           
   2016   2015
 
  Third   Second    First   Fourth   Third 
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter 
           
Expense reconciliation          
Expenses (GAAP)$  64,023  $  58,060  $  57,885  $  65,488  $  54,269  
Merger-related and other charges   (3,152)    (1,176)    (2,653)    (9,078)    (5,744) 
  Expenses - operating$  60,871  $  56,884  $  55,232  $  56,410  $  48,525  
                     
Net income reconciliation                    
Net income (GAAP)$  25,874  $  25,266  $  22,295  $  18,208  $  17,887  
Merger-related and other charges   3,152     1,176     2,653     9,078     5,744  
Income tax benefit of merger-related and other charges   (1,193)    (445)    (1,004)    (3,486)    (1,905) 
  Net income - operating$  27,833  $  25,997  $  23,944  $  23,800  $  21,726  
                     
Net income available to common shareholders reconciliation                    
Net income available to common shareholders (GAAP)$  25,874  $  25,266  $  22,274  $  18,183  $  17,862  
Merger-related and other charges   3,152     1,176      2,653     9,078     5,744  
Income tax benefit of merger-related and other charges   (1,193)    (445)    (1,004)    (3,486)    (1,905) 
  Net income available to common shareholders - operating$  27,833  $  25,997  $  23,923  $  23,775  $  21,701  
                     
Diluted income per common share reconciliation                     
Diluted income per common share (GAAP) $  .36   $  .35   $  .31   $  .25   $  .27  
Merger-related and other charges .03   .01   .02   .08   .06  
  Diluted income per common share - operating $  .39   $  .36   $  .33   $  .33   $  .33  
                     
Book value per common share reconciliation                     
Book value per common share (GAAP)$  15.12  $  14.80  $  14.35  $  14.02  $  13.95  
Effect of goodwill and other intangibles   (2.12)    (1.96)    (1.95)    (1.96)    (1.87) 
  Tangible book value per common share$  13.00  $  12.84  $  12.40  $  12.06  $  12.08  
                     
Return on tangible common equity reconciliation                    
Return on common equity (GAAP)   9.61 %   9.54 %   8.57 %   7.02 %   7.85 %
Merger-related  and other charges .73   .27   .63     2.16     1.69  
Return on common equity - operating   10.34     9.81     9.20      9.18     9.54  
Effect of goodwill and other intangibles   2.11     1.75     1.71     1.69   .75   
  Return on tangible common equity - operating   12.45 %   11.56 %   10.91 %   10.87 %   10.29 %
           
Return on assets reconciliation          
Return on assets (GAAP)   1.00 %   1.04 % .93 % .76 % .82 %
Merger-related  and other charges .08   .03   .07    .23   .18  
  Return on assets - operating   1.08 %   1.07 %   1.00 % .99 %   1.00 %
           
Dividend payout ratio reconciliation          
Dividend payout ratio (GAAP)   22.22 %    20.00 %   22.58 %   24.00 %   22.22 %
Merger-related and other charges   (1.71)  (.56)     (1.37)    (5.82)    (4.04) 
  Dividend payout ratio - operating   20.51 %   19.44 %   21.21 %   18.18 %   18.18 %
           
Efficiency ratio reconciliation          
Efficiency ratio (GAAP)   60.78 %   59.02 %   61.94 %   68.97 %   64.65 %
Merger-related and other charges   (2.99)    (1.20)    (2.84)    (9.56)    (6.84) 
  Efficiency ratio - operating   57.79 %   57.82 %   59.10 %   59.41 %   57.81 %
           
Average equity to assets reconciliation           
Equity to assets (GAAP)   10.38 %   10.72  % 10.72 % 10.68 % 10.39 %
Effect of goodwill and other intangibles   (1.40)    (1.29)    (1.31)     (1.28)  (.51) 
  Tangible equity to assets   8.98     9.43     9.41     9.40     9.88  
Effect of preferred equity   -      -    (.09)  (.11)  (.11) 
  Tangible common equity to assets   8.98 %   9.43 %   9.32 %   9.29  %   9.77 %
           
Tangible common equity to risk-weighted assets reconciliation (1)         
Tier 1 capital ratio (Regulatory)   11.08 %   11.44 %   11.32 %   11.45 %   11.40 %
Effect of other comprehensive income   -    (.06)  (.25)  (.38)  (.23) 
Effect of deferred tax limitation   1.50     1.63     1.85     2.05     2.24  
Effect of trust preferred (.26)  (.08)  (.08)  (.08)  (.08) 
Effect of preferred equity   -      -      -    (.15)  (.15) 
Basel III intangibles transition adjustment (.06)  (.06)  (.07)  (.10  (.13) 
Basel III disallowed investments    -      -      -    .03   .03  
  Tangible common equity to risk-weighted assets   12.26 %   12.87 %   12.77 %   12.82 %    13.08 %
           
(1)  Third quarter 2016 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) 2016   2015  
     
Expense reconciliation    
Expenses (GAAP)$  179,968  $  145,750  
Merger-related and other charges   (6,981)    (8,917) 
  Expenses - operating$  172,987  $  136,833  
         
Net income reconciliation         
Net income (GAAP)$  73,435  $  53,370  
Merger-related and other charges   6,981     8,917  
Income tax benefit of merger-related and other charges   (2,642)    (2,902) 
  Net income - operating$  77,774  $  59,385  
         
Net income available to common shareholders reconciliation        
Net income available to common shareholders (GAAP)$  73,414  $  53,328  
Merger-related and other charges   6,981     8,917  
Income tax benefit of merger-related and other charges   (2,642)    (2,902) 
  Net income available to common shareholders - operating$  77,753  $  59,343  
         
Diluted income per common share reconciliation        
Diluted income per common share (GAAP)$  1.02  $  .84  
Merger-related and other charges   -    .10  
  Diluted income per common share - operating$  1.02  $  .94  
         
Book value per common share reconciliation        
Book value per common share (GAAP)$  15.12  $  13.95  
Effect of goodwill and other intangibles   (2.12)    (1.87) 
  Tangible book value per common share$  13.00  $  12.08  
         
Return on tangible common equity reconciliation        
Return on common equity (GAAP)   9.25 %   8.63 %
Merger-related  and other charges .54    .97  
Return on common equity - operating   9.79     9.60  
Effect of goodwill and other intangibles   1.85   .40   
  Return on tangible common equity - operating   11.64 %   10.00 %
         
Return on assets reconciliation        
Return on assets (GAAP) .99 % .88 %
Merger-related  and other charges .06   .10  
  Return on assets - operating   1.05 % .98 %
         
Dividend payout ratio reconciliation        
Dividend payout ratio (GAAP)   21.57 %   19.05 %
Merger-related and other charges   (1.20)    (2.03) 
  Dividend payout ratio - operating   20.37 %   17.02 %
     
Efficiency ratio reconciliation    
Efficiency ratio (GAAP)   60.56 %   61.94 %
Merger-related and other charges   (2.35)    (3.79) 
  Efficiency ratio - operating   58.21 %   58.15 %
         
Average equity to assets reconciliation        
Equity to assets (GAAP) 10.60 % 10.11 %
Effect of goodwill and other intangibles   (1.33)  (.23) 
  Tangible equity to assets   9.27     9.88  
Effect of preferred equity (.03)   (.07) 
  Tangible common equity to assets   9.24 %   9.81 %
     
Tangible common equity to risk-weighted assets reconciliation (1)   
Tier 1 capital ratio (Regulatory)   11.08 %   11.40 %
Effect of other comprehensive income   -    (.23) 
Effect of deferred tax limitation   1.50     2.24  
Effect of trust preferred (.26)  (.08) 
Effect of preferred equity   -    (.15) 
Basel III intangibles transition adjustment (.06)  (.13) 
Basel III disallowed investments   -    .03  
  Tangible common equity to risk-weighted assets   12.26 %   13.08 %
     
(1)  Third quarter 2016 ratios are preliminary.    
     

 

       
UNITED COMMUNITY BANKS, INC.      
Financial Highlights          
Loan Portfolio Composition at Period-End      
           
           
   2016   2015 
   Third   Second   First   Fourth   Third 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,512  $  1,450  $  1,434  $  1,494  $  1,479 
Income producing commercial RE    1,105     919     880     824     818 
Commercial & industrial    994     926     855     785     890 
Commercial construction    389     384     354     342     319 
  Total commercial    4,000     3,679     3,523     3,445      3,506 
Residential mortgage    1,056     1,035     1,032     1,029      1,062 
Home equity lines of credit    698     623     604     598      585 
Residential construction    378     351     348     352      334 
Consumer installment    593     599     599     571      537 
  Total loans $  6,725   $  6,287  $  6,106  $  5,995  $  6,024 
            
LOANS BY MARKET          
North Georgia $  1,110  $  1,097  $  1,097  $  1,125  $  1,130 
Atlanta MSA    1,332     1,314     1,257     1,259     1,266 
North Carolina    548     543     543     549     546 
Coastal Georgia    565     541      543     537     506 
Gainesville MSA    236     240     248     254     252 
East Tennessee    506     509     495     504     511 
South Carolina    1,199     862      821     819     783 
Specialized Lending    763     706     628     492     609 
Indirect auto    466     475     474     456     421 
  Total loans $  6,725  $  6,287  $  6,106  $  5,995  $  6,024 
           

 

UNITED COMMUNITY BANKS, INC.      
Financial Highlights          
Loan Portfolio Composition at Period-End      
            
           
  2016  2015 Linked  Year over 
   Third    Second   Third  Quarter  Year 
(in millions)  Quarter Quarter Quarter Change  Change 
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,512  $  1,450  $  1,479  $  62  $  33 
Income producing commercial RE    1,105     919      818     186     287 
Commercial & industrial    994     926     890     68     104 
Commercial construction    389     384     319     5     70 
  Total commercial    4,000     3,679     3,506     321      494 
Residential mortgage    1,056     1,035     1,062     21      (6)
Home equity lines of credit    698     623     585     75      113 
Residential construction    378     351     334     27      44 
Consumer installment    593     599     537     (6)     56 
  Total loans $  6,725  $  6,287  $  6,024     438     701 
                     
LOANS BY MARKET                    
North Georgia $  1,110  $  1,097  $  1,130     13     (20)
Atlanta MSA    1,332     1,314     1,266     18     66 
North Carolina    548     543     546     5     2 
Coastal Georgia    565     541     506      24     59 
Gainesville MSA    236     240     252      (4)    (16)
East Tennessee    506     509     511     (3)    (5)
South Carolina    1,199     862     783      337     416 
Specialized Lending    763     706     609      57     154 
Indirect auto    466     475     421     (9)    45 
  Total loans $  6,725  $  6,287  $  6,024     438     701 
           

 

          
UNITED COMMUNITY BANKS, INC.          
Financial Highlights         
Credit Quality         
           
          
  Third Quarter 2016
    Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY         
Owner occupied CRE $  6,454  $  3,188  $  9,642 
Income producing CRE    949     765     1,714 
Commercial & industrial    1,079     -      1,079 
Commercial construction    98     1,274     1,372 
  Total commercial    8,580     5,227     13,807 
Residential mortgage    8,152     1,211     9,363 
Home equity lines of credit    1,194     514     1,708 
Residential construction    2,248     2,235     4,483 
Consumer installment    1,398     -      1,398 
  Total NPAs $  21,572  $  9,187  $  30,759 
          
NONPERFORMING ASSETS BY MARKET         
North Georgia $  5,356  $  653  $  6,009 
Atlanta MSA    979     1,530     2,509 
North Carolina    5,216     543     5,759 
Coastal Georgia    1,606     47     1,653 
Gainesville MSA    222     -      222 
East Tennessee    3,281     160     3,441 
South Carolina    2,015     6,254     8,269 
Specialized Lending    1,597     -      1,597 
Indirect auto    1,300     -      1,300 
  Total NPAs $  21,572  $  9,187  $  30,759 
          
          
NONPERFORMING ASSETS ACTIVITY         
Beginning Balance $  21,348  $  6,176  $  27,524 
Acquisitions    -      7,495     7,495 
Loans placed on non-accrual    6,680     -      6,680 
Payments received    (3,938)    -      (3,938)
Loan charge-offs    (1,236)    -      (1,236)
Foreclosures    (1,282)    2,335     1,053 
Capitalized costs    -      3     3 
Property sales    -      (6,553)    (6,553)
Write downs    -      (53)    (53)
Net gains (losses) on sales    -      (216)    (216)
  Ending Balance $  21,572  $  9,187  $  30,759 
          

 

UNITED COMMUNITY BANKS, INC.         
Financial Highlights          
Credit Quality         
          
          
  Second Quarter 2016
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY         
Owner occupied CRE $  6,681  $  3,096  $  9,777 
Income producing CRE    1,017     1,554     2,571 
Commercial & industrial    949     -      949 
Commercial construction    199     -      199 
  Total commercial    8,846     4,650     13,496 
Residential mortgage    8,667     1,160     9,827 
Home equity lines of credit    1,308     83     1,391 
Residential construction    1,578     283     1,861 
Consumer installment    949     -      949 
  Total NPAs $  21,348  $  6,176  $  27,524 
          
NONPERFORMING ASSETS BY MARKET          
North Georgia $  6,219  $  1,086  $  7,305 
Atlanta MSA    1,140     2,041     3,181 
North Carolina    4,762     224     4,986 
Coastal Georgia    1,186     168     1,354 
Gainesville MSA    234     -      234 
East Tennessee    3,616     247     3,863 
South Carolina    1,271     2,410     3,681 
Specialized Lending    2,108     -      2,108 
Indirect auto    812     -      812 
  Total NPAs $  21,348  $  6,176  $  27,524 
          
          
NONPERFORMING ASSETS ACTIVITY         
Beginning Balance $  22,419  $  5,163  $  27,582 
Acquisitions    -      (497)    (497)
Loans placed on non-accrual    6,786     -      6,786 
Payments received    (4,201)    -      (4,201)
Loan charge-offs    (1,803)    -      (1,803)
Foreclosures    (1,853)    2,722     869 
Capitalized costs    -      98     98 
Property sales    -      (1,424)    (1,424)
Write downs    -      (73)    (73)
Net gains (losses) on sales    -      187      187 
  Ending Balance $  21,348   $  6,176  $  27,524 
          

 

           
UNITED COMMUNITY BANKS, INC.         
Financial Highlights         
Credit Quality         
          
          
  First Quarter 2016
   Nonperforming   Foreclosed    Total 
(in thousands) Loans Properties  NPAs
NONPERFORMING ASSETS BY CATEGORY         
Owner occupied CRE $  6,775  $  2,864  $  9,639 
Income producing CRE    2,959     -      2,959 
Commercial & industrial    978     -      978 
Commercial construction    266     152     418 
  Total commercial    10,978     3,016      13,994 
Residential mortgage    8,037      1,587     9,624 
Home equity lines of credit    1,198     125     1,323 
Residential construction    1,122     435     1,557 
Consumer installment    1,084     -      1,084 
  Total NPAs $  22,419  $  5,163  $  27,582 
           
NONPERFORMING ASSETS BY MARKET         
North Georgia $  5,353  $  1,233   $  6,586 
Atlanta MSA    2,796     902     3,698 
North Carolina    4,860     559     5,419 
Coastal Georgia    1,696     121     1,817 
Gainesville MSA    250     -      250 
East Tennessee    3,470     351     3,821 
South Carolina    935     1,997     2,932 
Specialized Lending    2,186     -      2,186 
Indirect auto    873      -      873 
  Total NPAs $  22,419  $  5,163  $  27,582 
          
          
NONPERFORMING ASSETS ACTIVITY         
Beginning Balance $  22,653  $  4,883  $  27,536 
Acquisitions    -      -      -  
Loans placed on non-accrual    4,771     -      4,771 
Payments received     (1,812)    -      (1,812)
Loan charge-offs    (1,679)    -      (1,679)
Foreclosures    (1,514)    1,590     76 
Capitalized costs    -      -      -  
Property sales    -      (1,524)     (1,524)
Write downs    -      (7)    (7)
Net gains (losses) on sales    -      221     221  
  Ending Balance $  22,419  $  5,163  $  27,582 
          

 

                
UNITED COMMUNITY BANKS, INC.               
Financial Highlights                   
Credit Quality                  
                   
                    
  Third Quarter 2016 Second Quarter 2016 First Quarter 2016
    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 $  168    .04 $  564    .16 $  304    .08
Income producing CRE    157    .06     (23)   (.01    211    .10 
Commercial & industrial    453    .18     (392)   (.18    283    .14 
Commercial construction    (86)   (.09    22    .02     286    .33 
  Total commercial    692    .07     171    .02     1,084    .13 
Residential mortgage    (256)    (.09)     829    .32     50    .02 
Home equity lines of credit    267    .16     253    .17     632     .43 
Residential construction    134    .14     (8)   (.01    (103)   (.12
Consumer installment    522    .34     485    .33     475    .33 
  Total $  1,359    .08  $  1,730    .11  $  2,138    .14 
                   
                   
NET CHARGE-OFFS BY MARKET                
North Georgia $  68    .02 $  428    .16 $  913    .33
Atlanta MSA    398    .12     1    -      (25)   (.01) 
North Carolina    329    .24     575    .43      382    .28 
Coastal Georgia    432    .31     177    .13     196    .15 
Gainesville MSA    15    .03     (87)   (.14    98    .16 
East Tennessee    (69)   (.05    346    .28     378    .31 
South Carolina    (66)   (.02    49    .02     (16)   (.01
Specialized Lending    69    .04     (18)   (.01    4    -  
Indirect auto    183    .15     259    .22     208    .19 
  Total $  1,359    .08  $  1,730    .11  $  2,138    .14 
                 
(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)  2016   2015   2016   2015  
          
Interest revenue:         
Loans, including fees $  69,440  $  57,174  $  196,888  $  159,814   
Investment securities, including tax exempt of $134, $177, $449 and $516    15,418     12,801     48,039     36,896  
Deposits in banks and short-term investments    581     853     2,315     2,460  
Total interest revenue    85,439     70,828     247,242     199,170  
          
Interest expense:         
Deposits:         
NOW    452     337     1,381     1,079  
Money market    1,347     981     3,661     2,460  
Savings    43     25     102     71  
Time    667     830     2,052     2,834  
Total deposit interest expense    2,509     2,173     7,196     6,444  
Short-term borrowings    98     99     278     279  
Federal Home Loan Bank advances    1,015     461     2,731     1,307  
Long-term debt     2,828     2,669     8,178     7,481  
Total interest expense    6,450     5,402     18,383     15,511  
Net interest revenue    78,989     65,426     228,859     183,659  
Provision for credit losses    (300)    700     (800 )    3,400  
Net interest revenue after provision for credit losses    79,289     64,726     229,659     180,259  
          
Fee revenue:         
Service charges and fees    10,819     9,335     31,460     25,325  
Mortgage loan and other related fees    6,039     3,840     13,776     10,302  
Brokerage fees    1,199     1,200     3,369     3,983  
Gains from sales of government guaranteed loans    2,479     1,646     6,517     4,281  
Securities gains, net    261     325     922     1,877  
Loss from prepayment of debt    -     (256)    -     (1,294) 
Other     5,564     2,207     12,420     6,771  
Total fee revenue    26,361     18,297     68,464     51,245  
Total revenue    105,650     83,023     298,123     231,504  
          
Operating expenses:         
Salaries and employee benefits    36,478     29,342     103,112     83,749  
Communications and equipment    4,919     3,963     13,602     10,538  
Occupancy    5,132     4,013     14,393     10,706  
Advertising and public relations    1,088     812     3,275     2,689  
Postage, printing and supplies    1,451     1,049     4,029     2,980  
Professional fees    3,160     2,668     9,049     6,844  
FDIC assessments and other regulatory charges    1,412     1,136     4,453     3,643  
Amortization of intangibles    1,119     714     3,116     1,403  
Merger-related and other charges     3,152     5,744     6,981      8,917  
Other     6,112     4,828     17,958     14,281  
Total operating expenses    64,023     54,269     179,968     145,750  
Net income before income taxes    41,627     28,754     118,155     85,754  
Income tax expense    15,753     10,867     44,720     32,384  
Net income    25,874     17,887     73,435     53,370  
Preferred stock dividends and discount accretion    -     25     21     42  
Net income available to common shareholders $  25,874  $  17,862  $  73,414  $  53,328   
                  
Earnings per common share:                 
  Basic  $  .36   $  .27  $  1.02   $  .84  
  Diluted  .36   .27     1.02    .84  
Weighted average common shares outstanding:               
  Basic    71,556     66,294     71,992     63,297  
  Diluted    71,561     66,300     71,996     63,302  
          

 

     
UNITED COMMUNITY BANKS, INC.    
Consolidated Balance Sheet (Unaudited)    
     
  September 30, December 31,
(in thousands, except share and per share data)  2016   2015 
     
ASSETS    
  Cash and due from banks $  94,744  $  86,912 
  Interest-bearing deposits in banks    131,415     153,451 
  Cash and cash equivalents    226,159     240,363 
  Securities available for sale     2,215,113     2,291,511 
  Securities held to maturity (fair value $357,550 and $371,658)    344,917     364,696 
  Mortgage loans held for sale (includes $279 and $0 at fair value)    30,814     24,231 
  Loans, net of unearned income    6,725,110     5,995,441 
  Less allowance for loan losses    (62,961)    (68,448)
  Loans, net    6,662,149     5,926,993 
  Premises and equipment, net    189,302     178,165 
  Bank owned life insurance    123,129     105,493 
  Accrued interest receivable    26,494     25,786 
  Net deferred tax asset    156,408     197,613 
  Derivative financial instruments    25,463     20,082 
  Goodwill and other intangible assets    157,288     147,420 
  Other assets    140,379     94,075 
  Total assets $  10,297,615  $  9,616,428 
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
  Deposits:    
  Demand $  2,568,756  $  2,204,755 
  NOW    1,821,353     1,975,884 
  Money market    1,798,548     1,599,637 
  Savings    544,029     471,129 
  Time    1,349,543     1,282,803 
  Brokered    359,370     338,985 
  Total deposits    8,441,599     7,873,193 
  Short-term borrowings    35,050     16,640 
  Federal Home Loan Bank advances    449,407     430,125 
  Long-term debt    174,959     163,836 
  Derivative financial instruments    32,548     28,825 
  Accrued expenses and other liabilities    84,759     85,524 
  Total liabilities    9,218,322     8,598,143 
Shareholders' equity:    
  Preferred stock, $1 par value; 10,000,000 shares authorized;    
  Series H; $1,000 stated value; 0 and 9,992 shares issued and outstanding    -     9,992 
  Common stock, $1 par value; 150,000,000 shares authorized;    
  70,861,025 and 66,198,477 shares issued and outstanding    70,861     66,198  
  Common stock, non-voting, $1 par value; 26,000,000 shares authorized;    
  0 and 5,285,516 shares issued and outstanding    -     5,286 
  Common stock issuable; 520,014 and 458,953 shares    7,179      6,779 
  Capital surplus    1,274,909     1,286,361 
  Accumulated deficit    (273,314)    (330,879)
  Accumulated other comprehensive loss    (342)    (25,452)
  Total shareholders' equity    1,079,293     1,018,285 
  Total liabilities and shareholders' equity $  10,297,615  $  9,616,428 
     

 

             
UNITED COMMUNITY BANKS, INC.            
Average Consolidated Balance Sheets and Net Interest Analysis          
For the Three Months Ended September 30            
              
    2016        2015    
   Average   Avg.    Average   Avg.  
(dollars in thousands, fully taxable equivalent (FTE))  Balance    Interest Rate    Balance    Interest Rate   
Assets:            
Interest-earning assets:             
  Loans, net of unearned income (FTE) (1)(2)$  6,675,328  $  69,427  4.14% $  5,457,158  $  57,258 4.16% 
  Taxable securities (3)   2,588,037     15,284 2.36     2,367,417     12,624 2.13  
  Tax-exempt securities (FTE) (1)(3)   22,113     219 3.96     28,889     290 4.02   
  Federal funds sold and other interest-earning assets   157,972     754 1.91     155,957     948 2.43  
               
  Total interest-earning assets (FTE)   9,443,450     85,684 3.61     8,009,421     71,120 3.53  
Non-interest-earning assets:              
  Allowance for loan losses   (63,874)        (71,090)     
  Cash and due from banks   100,775         80,678      
  Premises and equipment   198,234         179,463      
  Other assets (3)   602,690         435,060      
  Total assets$  10,281,275       $  8,633,532      
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
  Interest-bearing deposits:            
NOW$  1,744,473     452 .10  $  1,491,801     337 .09  
Money market   1,997,165     1,347 .27     1,737,740     981 .22  
Savings   537,447     43 .03     386,254     25 .03   
Time   1,375,706     833 .24     1,277,829     1,155 .36   
Brokered time deposits   162,255     (166)(.41)     268,716     (325)(.48)   
  Total interest-bearing deposits   5,817,046       2,509 .17     5,162,340        2,173 .17  
                     
  Federal funds purchased and other borrowings   42,234     98 .92     72,909     99 .54   
  Federal Home Loan Bank advances   583,312     1,015 .69     281,429     461 .65   
  Long-term debt   177,333     2,828 6.34     152,105     2,669 6.96  
  Total borrowed funds   802,879     3,941 1.95     506,443     3,229 2.53  
             
  Total interest-bearing liabilities   6,619,925     6,450 .39     5,668,783     5,402 .38  
Non-interest-bearing liabilities:            
  Non-interest-bearing deposits   2,490,019          1,972,291      
  Other liabilities   103,859         95,342      
  Total liabilities   9,213,803         7,736,416      
Shareholders' equity    1,067,472         897,116      
  Total liabilities and shareholders' equity$  10,281,275       $  8,633,532      
             
Net interest revenue (FTE)  $  79,234      $  65,718    
Net interest-rate spread (FTE)   3.22%    3.15% 
             
Net interest margin (FTE) (4)    3.34%    3.26% 
             
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate  
used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.     
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.  
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized gains of $30.4 million in 2016 and $8.56 million     
in 2015 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,            
             
    2016       2015    
  Average   Avg.   Average   Avg.  
(dollars in thousands, fully taxable equivalent (FTE)) Balance   Interest Rate   Balance   Interest Rate  
Assets:            
Interest-earning assets:             
  Loans, net of unearned income (FTE) (1)(2)$  6,277,972  $  196,956 4.19% $  5,069,270  $  160,204 4.23% 
  Taxable securities (3)   2,665,272     47,590 2.38     2,263,907     36,380 2.14  
  Tax-exempt securities (FTE) (1)(3)   26,415     735 3.71     23,649     845 4.76  
  Federal funds sold and other interest-earning assets   150,146     2,719 2.41     154,392     2,734 2.36  
                
  Total interest-earning assets (FTE)   9,119,805     248,000 3.63     7,511,218     200,163 3.56  
Non-interest-earning assets:              
  Allowance for loan losses   (66,142)        (71,425)     
  Cash and due from banks   93,802         78,948      
  Premises and equipment   187,019         169,037      
  Other assets (3)   574,870         405,101      
  Total assets$  9,909,354      $  8,092,879      
                 
Liabilities and Shareholders' Equity:                
Interest-bearing liabilities:                
  Interest-bearing deposits:                
NOW$  1,795,372     1,381 .10  $  1,462,344     1,079 .10  
Money market   1,901,903     3,661 .26     1,605,098     2,460 .20  
Savings   505,337     102 .03     340,878     71 .03  
Time   1,280,503     2,325 .24     1,253,047     3,816 .41  
Brokered time deposits   194,199     (273)(.19)     272,688     (982)(.48)  
  Total interest-bearing deposits   5,677,314      7,196 .17     4,934,055     6,444 .17  
             
Federal funds purchased and other borrowings   29,427     278 1.26     52,385     279 .71  
Federal Home Loan Bank advances   506,524     2,731 .72     270,260     1,307 .65  
Long-term debt    168,955     8,178 6.47     131,338     7,481 7.62  
  Total borrowed funds   704,906     11,187 2.12      453,983     9,067 2.67  
             
  Total interest-bearing liabilities   6,382,220     18,383 .38     5,388,038     15,511 .38  
Non-interest-bearing liabilities:            
  Non-interest-bearing deposits   2,374,076         1,793,181      
  Other liabilities   102,421         93,218      
  Total liabilities   8,858,717         7,274,437      
Shareholders' equity   1,050,637         818,442      
  Total liabilities and shareholders' equity$  9,909,354      $  8,092,879      
             
Net interest revenue (FTE)  $  229,617      $  184,652    
Net interest-rate spread (FTE)   3.25%    3.18% 
             
Net interest margin (FTE) (4)   3.36%     3.29% 
              
(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 $15.1 million in 2016 and $12.7 million      
in 2015 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.      
             
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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