Press Release Details

 

• Operating earnings per diluted share of 33 cents, up 14 percent from a year ago
• Operating return on assets of 1.00 percent
• Operating return on tangible common equity of 10.3 percent
• Completed merger with Palmetto Bancshares, Inc. and its wholly owned subsidiary, The Palmetto Bank ("Palmetto"), on September 1
• Loans up $310 million for 2015,  or 9 percent annualized, excluding loans acquired in  mergers
• Core transaction deposits up $519 million for 2015, or 19 percent annualized, excluding deposits acquired in the mergers

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		4.45	%
Taxable securities (3)		2,263,907				36,380		2.14					2,272,639				35,560		2.09
Tax-exempt securities (1)(3)		23,649				845		4.76					19,515				914		6.24
Federal funds sold and other interest-earning assets		154,392				2,734		2.36					150,782				2,986		2.64
Total interest-earning assets		7,511,218				200,163		3.56					6,835,831				185,616		3.63
Non-interest-earning assets:
Allowance for loan losses		(71,425	)										(76,148	)
Cash and due from banks		78,948											65,744
Premises and equipment		169,037											161,843
Other assets (3)		405,101											404,654
Total assets	$	8,092,879										$	7,391,924
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,462,344				1,079		.10				$	1,367,713				1,216		.12
Money market		1,605,098				2,460		.20					1,375,064				2,192		.21
Savings		340,878				71		.03					272,696				61		.03
Time less than $100,000		768,608				2,223		.39					828,694				2,822		.46
Time greater than $100,000		484,439				1,593		.44					561,167				2,610		.62
Brokered time deposits		272,688				(982	)	(.48	)				300,374				78		.03
Total interest-bearing deposits		4,934,055				6,444		.17					4,705,708				8,979		.26
Federal funds purchased and other borrowings		52,385				279		.71					91,320				2,064		3.02
Federal Home Loan Bank advances		270,260				1,307		.65					169,392				573		.45
Long-term debt		131,338				7,481		7.62					129,865				7,914		8.15
Total borrowed funds		453,983				9,067		2.67					390,577				10,551		3.61
Total interest-bearing liabilities		5,388,038				15,511		.38					5,096,285				19,530		.51
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,793,181											1,469,967
Other liabilities		93,218											111,522
Total liabilities		7,274,437											6,677,774
Shareholders' equity		818,442											714,150
Total liabilities and shareholders' equity	$	8,092,879										$	7,391,924
Net interest revenue					$	184,652										$	166,086
Net interest-rate spread								3.18		%									3.12	%
Net interest margin (4)								3.29		%									3.25	%
(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 $12.7 million in 2015 and pretax unrealized gains of $1.59 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.

 

For more information:                                                                   

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

 

Source: United Community Banks, Inc.

 

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