Press Release Details

• Operating earnings per diluted share of 33 cents, up 10 percent from a year ago
• Operating return on assets of .99 percent
• Operating return on tangible common equity of 10.9 percent
• Loans up $162 million from third quarter, or 11 percent annualized, excluding sale of healthcare loans
• Loan growth for year of $444 million, or 10 percent, excluding mergers and healthcare loan sale
• Core transaction deposits up $524 million for 2015, or 14 percent, excluding deposits acquired in mergers

BLAIRSVILLE, Ga., Jan. 20, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today continued its strong momentum as it moves forward as a regional community bank in the Southeast, reflecting strong loan, core deposit and fee revenue growth, and a lower provision for credit losses.  For the fourth quarter of 2015, net operating income of $23.8 million increased 30 percent from a year ago and operating earnings per diluted share of 33 cents was up 10 percent from a year ago.

Operating earnings and operating earnings per diluted share for the fourth quarter of 2015 exclude the effects of merger-related and other charges for impairment on properties acquired for future expansion.  Including those charges, net income was $18.2 million for the fourth quarter, or 25 cents per diluted share.  Also, operating earnings this quarter include three months of earnings from the acquisition of The Palmetto Bank ("Palmetto"), as compared to one month for the third quarter of 2015.

For the full year of 2015, United achieved net income of $71.6 million, or $1.09 per diluted share.  Excluding merger-related and other charges, net operating income was $83.2 million, or $1.27 per diluted share.

At December 31, 2015, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.5 percent; Common Equity Tier 1 Risk-Based of 11.5 percent; and, Tier 1 Leverage of 8.3 percent.

"United continues to enhance its long term value potential.  This past year of 2015 demonstrated the strengths of our footprint and the momentum that characterizes our organization as we enter into 2016," said Jimmy Tallent, chairman and chief executive officer.  "In 2015, we struck the proper balance of investing for our future and delivering strong financial results.  The fourth quarter was a continuation of that solid performance.

"Total loan production continued strong in the fourth quarter, though not readily apparent in our year-end loan balances due to the sale of our $190 million of healthcare loans," Tallent continued.  "Year-to-date loan growth, excluding loans acquired in mergers and our sale of healthcare loans, was $444 million, or 10 percent, slightly above our 2015 target of mid-to-upper-single-digit loan growth.  Our loan growth was funded with solid core transaction deposit growth of $524 million, or 14 percent, excluding mergers.

"Fourth quarter net loan growth of $162 million, excluding the healthcare loan sale, was driven by loan production of $590 million across all of our markets," added Tallent.  "Our community banks originated $360 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $157 million."

Fourth quarter taxable-equivalent net interest revenue totaled $74.0 million, up $8.33 million from the third quarter of 2015 and up $15.7 million from the fourth quarter of 2014.  The increase in net interest revenue reflects strong loan and core deposit growth, net interest revenue from the Palmetto and First National Bank acquisitions, and an increase in net interest margin.

"The taxable-equivalent net interest margin of 3.34 percent is an increase of eight basis points from the third quarter and up three basis points from a year ago," said Tallent.  "The increase from third quarter reflects higher yields on our loan and securities portfolios as well as a two basis point decrease in the average rate on our interest-bearing liabilities.

"This quarter, our loan yield, net interest margin and net interest revenue benefited from the discount accretion from the acquired loan portfolios.  The sale of our lower-yielding healthcare loans also contributed to the higher loan yield and net interest margin," commented Tallent.  "Additionally, the securities yield benefited from the mix of floating rate securities, slower prepayments and restructuring of a corporate bond, while interest-bearing liabilities benefited from Palmetto's highly desirable deposit base that provided a very low cost source of funds."

The fourth quarter provision for credit losses was $300 thousand, down $400 thousand from the third quarter and down $1.50 million from the fourth quarter of 2014.  Fourth quarter net charge-offs were $1.30 million compared with $1.42 million in the third quarter and $2.51 million a year ago.  Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 compared with fourth quarter 2014.  Nonperforming assets were .29 percent of total assets at year-end, compared with .29 percent in the third quarter and .26 percent a year ago.

Fourth quarter fee revenue totaled $21.3 million, up $2.99 million from the third quarter and $6.46 million from the fourth quarter of 2014.  The increase from the third quarter was primarily due to the full quarter impact of the Palmetto acquisition.  Total service charges and fees were $11.5 million, up $2.17 million from the third quarter and up $3.05 million from a year ago.  Mortgage fees of $3.29 million were down $550 thousand from the third quarter and up $1.18 million from a year ago.  The decrease from the third quarter reflects seasonality and lower refinancing activity.  Closed mortgage loans totaled $138 million in the fourth quarter of 2015, compared with $141 million in the third quarter and $77.4 million in the fourth quarter of 2014.  During the fourth quarter, sales of $25.1 million in SBA loans resulted in net gains of $2.00 million.  This compares with $17.8 million in loans sold and net gains of $1.65 million in the third quarter of 2015, and $15.8 million in loans sold and net gains of $926 thousand in the fourth quarter of 2014.

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

Operating expenses, excluding merger-related and other charges of $9.08 million, were $56.4 million in the fourth quarter.  This compares with $48.5 million in the third quarter of 2015 and $41.9 million in the fourth quarter of 2014.  The increase from the third quarter reflects approximately $5.6 million of operating expenses related to the full-quarter impact of the Palmetto acquisition.  Palmetto's operating expenses are expected to decline following systems conversions late in the first quarter in 2016, as anticipated cost savings are realized.

"The increase in operating expenses from third quarter also reflects higher professional fees and consulting services for several, mostly one-time, regulatory-related compliance projects throughout the company," stated Tallent.  "With the heightened sensitivity to compliance, we made a decision to accelerate these projects into the current year."

Fourth quarter salaries and employee benefits expense totaled $32.9 million, up $3.60 million from the third quarter and $6.35 million from a year ago.  The linked-quarter increase was primarily due to the full-quarter impact of Palmetto's costs, our new Charleston loan production office, and higher incentive costs associated with the growth in earnings and lending businesses.  The increase from a year ago reflects the impact of mergers, investment in new lenders and support staff for the specialized lending area, as well as higher commissions and incentives associated with the overall improvement in earnings and growth in the SBA and mortgage lending businesses, commercial loans and core deposits.

Occupancy expense of $4.67 million and communications and equipment expense of $4.74 million for the fourth quarter were up $653 thousand and $772 thousand, respectively, with the full-quarter of Palmetto's expenses accounting for most of the increase in both expense categories.

Other operating expenses for the fourth quarter totaled $7.01 million, up $1.46 million from the third quarter and up $3.08 million from the fourth quarter of 2014.  The linked-quarter increase is mostly due to the inclusion of Palmetto's operating expenses for the full-quarter versus one month in the third quarter.  The increase from last year is due to the acquisitions and higher transaction processing costs for interchange and internet banking services.

"Palmetto merged into United on September 1 and our team of bankers has been working diligently to bring these two great companies together," noted Tallent.  "System conversions are targeted for late February 2016 and, upon their completion, Palmetto branches will begin doing business under the United Community Bank brand."

Fourth quarter expenses included an after-tax merger charge of $1.94 million primarily related to severance and retention bonuses, system conversion costs, and advisory and professional services fees for the Palmetto acquisition.  United also incurred an after-tax non-operating impairment charge in the fourth quarter of $3.65 million to write-down properties acquired in prior years for future branch expansion.

"As part of our growth strategy, we are evaluating all of our delivery channels, including future branch sites," said Tallent.  "Some of these properties will be retained for future branch sites, others will be sold.  These decisions will be made over the next two years as we continue to execute on our growth strategies.  However, because we've held these properties for a long time, we evaluated them for impairment and wrote-down the properties accordingly."

"Our fourth quarter results mark the completion of another strong year," Tallent said. "We will remember 2015 as the year we successfully re-entered the mergers and acquisitions business.  I could not be more pleased with the partners we have chosen and our exceptional team of bankers who worked tirelessly to bring it all about.  I'm excited about the momentum and foundation we are building at United and the opportunities for growth and success they will bring."

Conference Call
United will hold a conference call today, Wednesday, January 20, 2016, 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 19833202.  The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.6 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 134 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 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.

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
																				Fourth
		2015																2014		Quarter
(in thousands, except per share	Fourth				Third				Second				First				Fourth			2015-2014
data; taxable equivalent)	Quarter				Quarter				Quarter				Quarter				Quarter			Change
INCOME SUMMARY
Interest revenue	$	79,646			$	71,120			$	66,134			$	62,909			$	64,353
Interest expense		5,598				5,402				4,817				5,292				6,021
Net interest revenue		74,048				65,718				61,317				57,617				58,332			27		%
Provision for credit losses		300				700				900				1,800				1,800
Fee revenue		21,284				18,297				17,266				15,682				14,823			44
Total revenue		95,032				83,315				77,683				71,499				71,355			33
Expenses - operating  (1)		56,410				48,525				45,247				43,061				41,919			35
Income before income tax expense - operating (1)		38,622				34,790				32,436				28,438				29,436			31
Income tax expense - operating  (1)		14,822				13,064				12,447				10,768				11,189			32
Net income - operating  (1)		23,800				21,726				19,989				17,670				18,247			30
Preferred dividends and discount accretion		25				25				17				-				-
Net income available to common   shareholders - operating   (1)		23,775				21,701				19,972				17,670				18,247			30
Merger-related and other charges, net of income tax benefit		5,592				3,839				2,176				-				-
Net income available to common   shareholders - GAAP	$	18,183			$	17,862			$	17,796			$	17,670			$	18,247			-
PERFORMANCE MEASURES
Per common share:
Diluted income - operating  (1)	$	.33			$	.33			$	.32			$	.29			$	.30			10
Diluted income - GAAP		.25				.27				.28				.29				.30			(17	)
Cash dividends declared		.06				.06				.05				.05				.05
Book value		14.02				13.95				12.95				12.58				12.20			15
Tangible book value (3)		12.06				12.08				12.66				12.53				12.15			(1	)
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)(4)		10.87		%		10.29		%		10.20		%		9.46		%		9.74	%
Return on common equity - operating (1)(2)(4)		9.18				9.54				9.90				9.34				9.60
Return on common equity - GAAP (2)(4)		7.02				7.85				8.83				9.34				9.60
Return on assets - operating (1)(4)		.99				1.00				1.00				.94				.96
Return on assets - GAAP (4)		.76				.82				.89				.94				.96
Dividend payout ratio - operating (1)		18.18				18.18				15.63				17.24				16.67
Dividend payout ratio - GAAP		24.00				22.22				17.86				17.24				16.67
Net interest margin (4)		3.34				3.26				3.30				3.31				3.31
Efficiency ratio - operating  (1)		59.41				57.81				57.59				59.15				57.47
Efficiency ratio - GAAP		68.97				64.65				61.63				59.15				57.47
Average equity to average assets		10.68				10.39				10.05				9.86				9.76
Average tangible equity to average assets (3)		9.40				9.88				9.91				9.82				9.72
Average tangible common equity to   average assets (3)		9.29				9.77				9.83				9.82				9.72
Tangible common equity to risk-weighted   assets (3)(5)(6)		12.82				13.08				13.24				13.53				13.82
ASSET QUALITY
Nonperforming loans	$	22,653			$	20,064			$	18,805			$	19,015			$	17,881			27
Foreclosed properties		4,883				7,669				2,356				1,158				1,726			183
Total nonperforming assets (NPAs)		27,536				27,733				21,161				20,173				19,607			40
Allowance for loan losses		68,448				69,062				70,129				70,007				71,619			(4	)
Net charge-offs		1,302				1,417				978				2,562				2,509			(48	)
Allowance for loan losses to loans		1.14		%		1.15		%		1.36		%		1.46		%		1.53	%
Allowance for loan losses to loans, excl. acquired loans		1.35				1.37				1.42				1.46				1.53
Net charge-offs to average loans (4)		.09				.10				.08				.22				.22
NPAs to loans and foreclosed properties		.46				.46				.41				.42				.42
NPAs to total assets		.29				.29				.26				.26				.26
AVERAGE BALANCES ($ in millions)
Loans	$	5,975			$	5,457			$	5,017			$	4,725			$	4,621			29
Investment securities		2,607				2,396				2,261				2,203				2,222			17
Earning assets		8,792				8,009				7,444				7,070				7,013			25
Total assets		9,558				8,634				8,017				7,617				7,565			26
Deposits		8,028				7,135				6,669				6,369				6,383			26
Shareholders' equity		1,021				897				806				751				738			38
Common shares - basic (thousands)		72,135				66,294				62,549				60,905				60,830			19
Common shares - diluted (thousands)		72,140				66,300				62,553				60,909				60,833			19
AT PERIOD END ($ in millions)
Loans	$	5,995			$	6,024			$	5,174			$	4,788			$	4,672			28
Investment securities		2,656				2,457				2,322				2,201				2,198			21
Total assets		9,626				9,414				8,246				7,664				7,567			27
Deposits		7,881				7,905				6,808				6,438				6,327			25
Shareholders' equity		1,018				1,013				827				764				740			38
Common shares outstanding (thousands)		71,484				71,472				62,700				60,309				60,259			19
(1)  Excludes merger-related charges and 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)December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  (6)  Fourth quarter 2015 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
	For the Twelve
	Months Ended								YTD
(in thousands, except per share	December 31,								2015-2014
data; taxable equivalent)		2015				2014			Change
INCOME SUMMARY
Interest revenue	$	279,809			$	249,969
Interest expense		21,109				25,551
Net interest revenue		258,700				224,418				15		%
Provision for credit losses		3,700				8,500
Fee revenue		72,529				55,554				31
Total revenue		327,529				271,472				21
Expenses - operating  (1)		193,243				162,865				19
Income before income tax expense - operating (1)		134,286				108,607				24
Income tax expense - operating  (1)		51,101				40,987				25
Net income - operating  (1)		83,185				67,620				23
Preferred dividends and discount accretion		67				439
Net income available to common   shareholders - operating  (1)		83,118				67,181				24
Merger-related and other charges, net of income tax benefit		11,607				-
Net income available to common   shareholders - GAAP	$	71,511			$	67,181				6
PERFORMANCE MEASURES
Per common share:
Diluted income - operating  (1)	$	1.27			$	1.11				14
Diluted income - GAAP		1.09				1.11				(2	)
Cash dividends declared		.22				.11
Book value		14.02				12.20				15
Tangible book value (3)		12.06				12.15				(1	)
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)(4)		10.24		%		9.32		%
Return on common equity - operating (1)(2)(4)		9.48				9.17
Return on common equity - GAAP (2)(4)		8.15				9.17
Return on assets - operating (1)(4)		.98				.91
Return on assets - GAAP (4)		.85				.91
Dividend payout ratio - operating (1)		17.32				9.91
Dividend payout ratio - GAAP		20.18				9.91
Net interest margin (4)		3.30				3.26
Efficiency ratio - operating  (1)		58.51				58.26
Efficiency ratio - GAAP		63.96				58.26
Average equity to average assets		10.27				9.69
Average tangible equity to average assets (3)		9.74				9.67
Average tangible common equity to   average assets (3)		9.66				9.60
Tangible common equity to risk-weighted   assets (3)(5)(6)		12.82				13.82
ASSET QUALITY
Nonperforming loans	$	22,653			$	17,881				27
Foreclosed properties		4,883				1,726				183
Total nonperforming assets (NPAs)		27,536				19,607				40
Allowance for loan losses		68,448				71,619				(4	)
Net charge-offs		6,259				13,878				(55	)
Allowance for loan losses to loans		1.14		%		1.53		%
Allowance for loan losses to loans, excl. acquired loans		1.35				1.53
Net charge-offs to average loans (4)		.12				.31
NPAs to loans and foreclosed properties		.46				.42
NPAs to total assets		.29				.26
AVERAGE BALANCES ($ in millions)
Loans	$	5,298			$	4,450				19
Investment securities		2,368				2,274				4
Earning assets		7,834				6,880				14
Total assets		8,462				7,436				14
Deposits		7,055				6,228				13
Shareholders' equity		869				720				21
Common shares - basic (thousands)		65,488				60,588				8
Common shares - diluted (thousands)		65,492				60,590				8
AT PERIOD END ($ in millions)
Loans	$	5,995			$	4,672				28
Investment securities		2,656				2,198				21
Total assets		9,626				7,567				27
Deposits		7,881				6,327				25
Shareholders' equity		1,018				740				38
Common shares outstanding (thousands)		71,484				60,259				19
(1)  Excludes merger-related charges and 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)December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  (6)  Fourth quarter 2015 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31 ,
(in thousands, except per share data;
taxable equivalent)			2015				2014				2013				2012				2011
INCOME SUMMARY
Net interest revenue		$	258,700			$	224,418			$	219,641			$	229,758			$	238,670
Provision for credit losses			3,700				8,500				65,500				62,500				251,000
Fee revenue			72,529				55,554				56,598				56,112				44,907
Total revenue			327,529				271,472				210,739				223,370				32,577
Expenses - operating (1)			193,243				162,865				174,304				186,774				261,599
Income (loss) before income tax expense (benefit) - operating (1)			134,286				108,607				36,435				36,596				(229,022	)
Income tax expense (benefit) - operating (1)			51,101				40,987				(236,705	)			2,740				(2,276	)
Net income (loss) - operating (1)			83,185				67,620				273,140				33,856				(226,746	)
Preferred dividends and discount accretion			67				439				12,078				12,148				11,838
Net income (loss) available to common shareholders - operating (1)			83,118				67,181				261,062				21,708				(238,584	)
Merger-related and other charges, net of income tax benefit			(11,607	)			-				-				-				-
Net income (loss) available to common shareholders - GAAP		$	71,511			$	67,181			$	261,062			$	21,708			$	(238,584	)
PERFORMANCE MEASURES
Per common share:
Diluted income (loss) - operating (1)		$	1.27			$	1.11			$	4.44			$	.38			$	(5.97	)
Diluted income (loss) - GAAP			1.09				1.11				4.44				.38				(5.97	)
Cash dividends declared			.22				.11				-				-				-
Book value			14.02				12.20				11.30				6.67				6.62
Tangible book value (3)			12.06				12.15				11.26				6.57				6.47
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)			10.24		%		9.32		%		47.35		%		6.27		%		(96.20	)	%
Return on common equity - operating (1)(2)			9.48				9.17				46.72				5.43				(93.57	)
Return on common equity - GAAP (2)			8.15				9.17				46.72				5.43				(93.57	)
Return on assets - operating (1)			.98				.91				3.86				.49				(3.15	)
Return on assets - GAAP			.85				.91				3.86				.49				(3.15	)
Dividend payout ratio - operating (1)			17.32				9.91				-				-				-
Dividend payout ratio - GAAP			20.18				9.91				-				-				-
Net interest margin			3.30				3.26				3.30				3.51				3.52
Efficiency ratio - operating (1)			58.51				58.26				63.14				65.43				92.27
Efficiency ratio - GAAP			63.96				58.26				63.14				65.43				92.27
Average equity to average assets			10.27				9.69				10.35				8.47				7.75
Average tangible equity to average assets (3)			9.74				9.67				10.31				8.38				7.62
Average tangible common equity to average assets (3)			9.66				9.60				7.55				5.54				3.74
Tangible common equity to risk-weighted assets (3)(4)(5)			12.82				13.82				13.17				8.26				8.25
ASSET QUALITY
Non-performing loans		$	22,653			$	17,881			$	26,819			$	109,894			$	127,479
Foreclosed properties			4,883				1,726				4,221				18,264				32,859
Total non-performing assets (NPAs)			27,536				19,607				31,040				128,158				160,338
Allowance for loan losses			68,448				71,619				76,762				107,137				114,468
Net charge-offs			6,259				13,879				93,710				69,831				311,227
Allowance for loan losses to loans			1.14		%		1.53		%		1.77		%		2.57		%		2.79		%
Allowance for loan losses to loans, excluding acquired loans			1.35				1.53				1.77				2.57				2.79
Net charge-offs to average loans			.12				.31				2.22				1.69				7.33
NPAs to loans and foreclosed properties			.46				.42				.72				3.06				3.87
NPAs to total assets			.29				.26				.42				1.88				2.30
AVERAGE BALANCES ($ in millions)
Loans		$	5,298			$	4,450			$	4,254			$	4,166			$	4,307
Investment securities			2,368				2,274				2,190				2,089				1,999
Earning assets			7,834				6,880				6,649				6,547				6,785
Total assets			8,462				7,436				7,074				6,865				7,189
Deposits			7,055				6,228				6,027				5,885				6,275
Shareholders' equity			869				720				732				582				557
Common shares - Basic (thousands)			65,488				60,588				58,787				57,857				39,943
Common shares - Diluted (thousands)			65,492				60,590				58,845				57,857				39,943
AT YEAR END ($ in millions)
Loans		$	5,995			$	4,672			$	4,329			$	4,175			$	4,110
Investment securities			2,656				2,198				2,312				2,079				2,120
Total assets			9,626				7,567				7,425				6,802				6,983
Deposits			7,881				6,327				6,202				5,952				6,098
Shareholders' equity			1,018				740				796				581				575
Common shares outstanding (thousands)			71,484				60,259				59,432				57,741				57,561
(1)  Excludes merger-related charges and impairment losses on surplus bank property.  (2)  Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (3)  Excludes effect of acquisition related intangibles and associated amortization.  (4)December 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  (5) 2015 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2015															2014
(in thousands, except per share	Fourth				Third				Second				First				Fourth
data; taxable equivalent)	Quarter				Quarter				Quarter				Quarter				Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	79,646			$	71,120			$	66,134			$	62,909			$	64,353
Taxable equivalent adjustment		(284	)			(292	)			(326	)			(375	)			(398	)
Interest revenue (GAAP)	$	79,362			$	70,828			$	65,808			$	62,534			$	63,955
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	74,048			$	65,718			$	61,317			$	57,617			$	58,332
Taxable equivalent adjustment		(284	)			(292	)			(326	)			(375	)			(398	)
Net interest revenue (GAAP)	$	73,764			$	65,426			$	60,991			$	57,242			$	57,934
Total revenue reconciliation
Total operating revenue	$	95,032			$	83,315			$	77,683			$	71,499			$	71,355
Taxable equivalent adjustment		(284	)			(292	)			(326	)			(375	)			(398	)
Total revenue (GAAP)	$	94,748			$	83,023			$	77,357			$	71,124			$	70,957
Expense reconciliation
Expenses - operating	$	56,410			$	48,525			$	45,247			$	43,061			$	41,919
Merger-related and other charges		9,078				5,744				3,173				-				-
Expenses (GAAP)	$	65,488			$	54,269			$	48,420			$	43,061			$	41,919
Income before taxes reconciliation
Income before taxes - operating	$	38,622			$	34,790			$	32,436			$	28,438			$	29,436
Taxable equivalent adjustment		(284	)			(292	)			(326	)			(375	)			(398	)
Merger-related and other charges		(9,078	)			(5,744	)			(3,173	)			-				-
Income before taxes (GAAP)	$	29,260			$	28,754			$	28,937			$	28,063			$	29,038
Income tax expense reconciliation
Income tax expense - operating	$	14,822			$	13,064			$	12,447			$	10,768			$	11,189
Taxable equivalent adjustment		(284	)			(292	)			(326	)			(375	)			(398	)
Merger-related and other charges, tax benefit		(3,486	)			(1,905	)			(997	)			-				-
Income tax expense (GAAP)	$	11,052			$	10,867			$	11,124			$	10,393			$	10,791
Net income reconciliation
Net income - operating	$	23,800			$	21,726			$	19,989			$	17,670			$	18,247
Merger-related and other charges, net of income tax benefit		(5,592	)			(3,839	)			(2,176	)			-				-
Net income (GAAP)	$	18,208			$	17,887			$	17,813			$	17,670			$	18,247
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	23,775			$	21,701			$	19,972			$	17,670			$	18,247
Merger-related and other charges, net of income tax benefit		(5,592	)			(3,839	)			(2,176	)			-				-
Net income available to common shareholders (GAAP)	$	18,183			$	17,862			$	17,796			$	17,670			$	18,247
Diluted income per common share reconciliation
Diluted income per common share - operating	$	.33			$	.33			$	.32			$	.29			$	.30
Merger-related and other charges		(.08	)			(.06	)			(.04	)			-				-
Diluted income per common share (GAAP)	$	.25			$	.27			$	.28			$	.29			$	.30
Book value per common share reconciliation
Tangible book value per common share	$	12.06			$	12.08			$	12.66			$	12.53			$	12.15
Effect of goodwill and other intangibles		1.96				1.87				.29				.05				.05
Book value per common share (GAAP)	$	14.02			$	13.95			$	12.95			$	12.58			$	12.20
Return on tangible common equity reconciliation
Return on tangible common equity - operating		10.87		%		10.29		%		10.20		%		9.46		%		9.74		%
Effect of goodwill and other intangibles		(1.69	)			(.75	)			(.30	)			(.12	)			(.14	)
Return on common equity - operating		9.18				9.54				9.90				9.34				9.60
Merger-related and other charges		(2.16	)			(1.69	)			(1.07	)			-				-
Return on common equity (GAAP)		7.02		%		7.85		%		8.83		%		9.34		%		9.60		%
Return on assets reconciliation
Return on assets - operating		.99		%		1.00		%		1.00		%		.94		%		.96		%
Merger-related and other charges		(.23	)			(.18	)			(.11	)			-				-
Return on assets (GAAP)		.76		%		.82		%		.89		%		.94		%		.96		%
Allowance for loan losses to loans reconciliation
Allowance for loan losses to loans, excl. acquired loans		1.35		%		1.37		%		1.42		%		1.46		%		1.53		%
Effect of removing acquired loans from ratio		(.21	)			(.22	)			(.06	)			-				-
Allowance for loan losses to loans (GAAP)		1.14		%		1.15		%		1.36		%		1.46		%		1.53		%
Dividend payout ratio reconciliation
Dividend payout ratio - operating		18.18		%		18.18		%		15.63		%		17.24		%		16.67		%
Merger-related and other charges		5.82				4.04				2.23				-				-
Dividend payout ratio (GAAP)		24.00		%		22.22		%		17.86		%		17.24		%		16.67		%
Efficiency ratio reconciliation
Efficiency ratio - operating		59.41		%		57.81		%		57.59		%		59.15		%		57.47		%
Merger-related and other charges		9.56				6.84				4.04				-				-
Efficiency ratio (GAAP)		68.97		%		64.65		%		61.63		%		59.15		%		57.47		%
Average equity to assets reconciliation
Tangible common equity to assets		9.29		%		9.77		%		9.83		%		9.82		%		9.72		%
Effect of preferred equity		.11				.11				.08				-				-
Tangible equity to assets		9.40				9.88				9.91				9.82				9.72
Effect of goodwill and other intangibles		1.28				.51				.14				.04				.04
Equity to assets (GAAP)		10.68		%		10.39		%		10.05		%		9.86		%		9.76		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets		12.82		%		13.08		%		13.24		%		13.53		%		13.82		%
Effect of other comprehensive income		.38				.23				.28				.19				.35
Effect of deferred tax limitation		(2.05	)			(2.24	)			(2.49	)			(2.86	)			(3.11	)
Effect of trust preferred		.08				.08				.63				.67				1.00
Effect of preferred equity		.15				.15				.17				-				-
Basel III intangibles transition adjustment		.10				.13				.06				.04				-
Basel III disallowed investments		(.03	)			(.03	)			(.03	)			(.04	)			-
Tier I capital ratio (Regulatory)		11.45		%		11.40		%		11.86		%		11.53		%		12.06		%
(1)  December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Fourth quarter 2015 ratios are preliminary.

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
	For the Twelve Months Ended
	December 31,
(in thousands, except per share
data; taxable equivalent)		2015				2014				2013				2012				2011
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	279,809			$	249,969			$	247,323			$	267,667			$	304,308
Taxable equivalent adjustment		(1,277	)			(1,537	)			(1,483	)			(1,690	)			(1,707	)
Interest revenue (GAAP)	$	278,532			$	248,432			$	245,840			$	265,977			$	302,601
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	258,700			$	224,418			$	219,641			$	229,758			$	238,670
Taxable equivalent adjustment		(1,277	)			(1,537	)			(1,483	)			(1,690	)			(1,707	)
Net interest revenue (GAAP)	$	257,423			$	222,881			$	218,158			$	228,068			$	236,963
Total revenue reconciliation
Total operating revenue	$	327,529			$	271,472			$	210,739			$	223,370			$	32,577
Taxable equivalent adjustment		(1,277	)			(1,537	)			(1,483	)			(1,690	)			(1,707	)
Total revenue (GAAP)	$	326,252			$	269,935			$	209,256			$	221,680			$	30,870
Expense reconciliation
Expenses - operating	$	193,243			$	162,865			$	174,304			$	186,774			$	261,599
Merger-related and other charges		17,995				-				-				-				-
Expenses (GAAP)	$	211,238			$	162,865			$	174,304			$	186,774			$	261,599
Income before taxes reconciliation
Income before taxes - operating	$	134,286			$	108,607			$	36,435			$	36,596			$	(229,022	)
Taxable equivalent adjustment		(1,277	)			(1,537	)			(1,483	)			(1,690	)			(1,707	)
Merger-related and other charges		(17,995	)			-				-				-				-
Income before taxes (GAAP)	$	115,014			$	107,070			$	34,952			$	34,906			$	(230,729	)
Income tax expense reconciliation
Income tax expense - operating	$	51,101			$	40,987			$	(236,705	)		$	2,740			$	(2,276	)
Taxable equivalent adjustment		(1,277	)			(1,537	)			(1,483	)			(1,690	)			(1,707	)
Merger-related and other charges, tax benefit		(6,388	)			-				-				-				-
Income tax expense (GAAP)	$	43,436			$	39,450			$	(238,188	)		$	1,050			$	(3,983	)
Net income reconciliation
Net income - operating	$	83,185			$	67,620			$	273,140			$	33,856			$	(226,746	)
Merger-related charges, net of income tax benefit		(11,607	)			-				-				-				-
Net income (GAAP)	$	71,578			$	67,620			$	273,140			$	33,856			$	(226,746	)
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	83,118			$	67,181			$	261,062			$	21,708			$	(238,584	)
Merger-related charges, net of income tax benefit		(11,607	)			-				-				-				-
Net income available to common shareholders (GAAP)	$	71,511			$	67,181			$	261,062			$	21,708			$	(238,584	)
Diluted income per common share reconciliation
Diluted income per common share - operating	$	1.27			$	1.11			$	4.44			$	.38			$	(5.97	)
Merger-related and other charges		(.18	)			-				-				-				-
Diluted income per common share (GAAP)	$	1.09			$	1.11			$	4.44			$	.38			$	(5.97	)
Book value per common share reconciliation
Tangible book value per common share	$	12.06			$	12.15			$	11.26			$	6.57			$	6.47
Effect of goodwill and other intangibles		1.96				.05				.04				.10				.15
Book value per common share (GAAP)	$	14.02			$	12.20			$	11.30			$	6.67			$	6.62
Return on tangible common equity reconciliation
Return on tangible common equity - operating		10.24		%		9.32		%		47.35		%		6.27		%		(96.20	)	%
Effect of goodwill and other intangibles		(.76	)			(.15	)			(.63	)			(.84	)			2.63
Return on common equity - operating		9.48				9.17				46.72				5.43				(93.57	)
Merger-related and other charges		(1.33	)			-				-				-				-
Return on common equity (GAAP)		8.15		%		9.17		%		46.72		%		5.43		%		(93.57	)	%
Return on assets reconciliation
Return on assets - operating		.98		%		.91		%		3.86		%		.49		%		(3.15	)	%
Merger-related charges		(.13	)			-				-				-				-
Return on assets (GAAP)		.85		%		.91		%		3.86		%		.49		%		(3.15	)	%
Allowance for loan losses to loans reconciliation
Allowance for loan losses to loans , excl. acquired loans		1.35		%		1.53		%		1.77		%		2.57		%		2.79		%
Effect of removing acquired loans from ratio		(.21	)			-				-				-				-
Allowance for loan losses to loans (GAAP)		1.14		%		1.53		%		1.77		%		2.57		%		2.79		%
Dividend payout ratio reconciliation
Dividend payout ratio - operating		17.32		%		9.91		%		-		%		-		%		-		%
Merger-related charges		2.86				-				-				-				-
Dividend payout ratio (GAAP)		20.18		%		9.91		%		-		%		-		%		-		%
Efficiency ratio reconciliation
Efficiency ratio - operating		58.51		%		58.26		%		63.14		%		65.43		%		92.27		%
Merger-related charges		5.45				-				-				-				-
Efficiency ratio (GAAP)		63.96		%		58.26		%		63.14		%		65.43		%		92.27		%
Average equity to assets reconciliation
Tangible common equity to assets		9.66		%		9.60		%		7.55		%		5.54		%		3.74		%
Effect of preferred equity		.08				.07				2.76				2.84				3.88
Tangible equity to assets		9.74				9.67				10.31				8.38				7.62
Effect of goodwill and other intangibles		.53				.02				.04				.09				.13
Equity to assets (GAAP)		10.27		%		9.69		%		10.35		%		8.47		%		7.75		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets		12.82		%		13.82		%		13.18		%		8.26		%		8.25		%
Effect of other comprehensive income		.38				.35				.39				.51				(.03	)
Effect of deferred tax limitation		(2.05	)			(3.11	)			(4.26	)			-				-
Effect of trust preferred		.08				1.00				1.04				1.15				1.18
Effect of preferred equity		.15				-				2.39				4.24				4.29
Basel III intangibles transition adjustment		.10				-				-				-				-
Basel III disallowed investments		(.03	)			-				-				-				-
Tier I capital ratio (Regulatory)		11.45		%		12.06		%		12.74		%		14.16		%		13.69		%
(1)  December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Fourth quarter 2015 ratios are preliminary.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
			2015																2014
		Fourth				Third				Second				First				Fourth
(in millions)		Quarter				Quarter				Quarter				Quarter				Quarter
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,494			$	1,479			$	1,266			$	1,167			$	1,163
Income producing commercial RE			824				818				689				636				599
Commercial & industrial			785				890				793				716				710
Commercial construction			342				319				238				230				196
Total commercial			3,445				3,506				2,986				2,749				2,668
Residential mortgage			1,029				1,062				935				864				866
Home equity lines of credit			598				585				491				465				466
Residential construction			352				334				299				291				299
Consumer installment			571				537				463				419				373
Total loans		$	5,995			$	6,024			$	5,174			$	4,788			$	4,672
LOANS BY MARKET
North Georgia		$	1,125			$	1,130			$	1,155			$	1,150			$	1,163
Atlanta MSA			1,259				1,266				1,275				1,254				1,243
North Carolina			549				546				533				539				553
Coastal Georgia			537				506				499				476				456
Gainesville MSA			254				252				257				255				257
East Tennessee			504				511				525				281				280
South Carolina			819				783				35				30				30
Specialized Lending			492				609				538				487				421
Indirect auto			456				421				357				316				269
Total loans		$	5,995			$	6,024			$	5,174			$	4,788			$	4,672

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2015									2014				Linked						Year over
	Fourth				Third				Fourth					Quarter						Year
(in millions)	Quarter				Quarter				Quarter					Change						Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,494			$	1,479			$	1,163			$		15				$		331
Income producing commercial RE		824				818				599					6						225
Commercial & industrial		785				890				710					(105	)					75
Commercial construction		342				319				196					23						146
Total commercial		3,445				3,506				2,668					(61	)					777
Residential mortgage		1,029				1,062				866					(33	)					163
Home equity lines of credit		598				585				466					13						132
Residential construction		352				334				299					18						53
Consumer installment		571				537				373					34						198
Total loans	$	5,995			$	6,024			$	4,672					(29	)					1,323
LOANS BY MARKET
North Georgia	$	1,125			$	1,130			$	1,163				$	(5	)				$	(38	)
Atlanta MSA		1,259				1,266				1,243					(7	)					16
North Carolina		549				546				553					3						(4	)
Coastal Georgia		537				506				456					31						81
Gainesville MSA		254				252				257					2						(3	)
East Tennessee		504				511				280					(7	)					224
South Carolina		819				783				30					36						789
Specialized Lending		492				609				421					(117	)					71
Indirect auto		456				421				269					35						187
Total loans	$	5,995			$	6,024			$	4,672					(29	)					1,323

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)			2015				2014				2013				2012				2011
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,494			$	1,163			$	1,134			$	1,131			$	1,112
Income producing commercial RE			824				599				623				682				710
Commercial & industrial			785				710				472				458				428
Commercial construction			342				196				149				155				164
Total commercial			3,445				2,668				2,378				2,426				2,414
Residential mortgage			1,029				866				875				829				835
Home equity lines of credit			598				466				441				385				300
Residential construction			352				299				328				382				448
Consumer installment			571				373				307				153				113
Total loans		$	5,995			$	4,672			$	4,329			$	4,175			$	4,110
LOANS BY MARKET
North Georgia		$	1,125			$	1,163			$	1,240			$	1,364			$	1,426
Atlanta MSA			1,259				1,243				1,235				1,204				1,144
North Carolina			549				553				572				579				597
Coastal Georgia			537				456				423				400				346
Gainesville MSA			254				257				255				261				265
East Tennessee			504				280				280				283				256
South Carolina			819				30				4				-				-
Specialized Lending			492				421				124				46				76
Indirect auto			456				269				196				38				-
Total loans		$	5,995			$	4,672			$	4,329			$	4,175			$	4,110

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		Fourth Quarter 2015
		Nonperforming					Foreclosed					Total
(in thousands)		Loans					Properties					NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	7,036				$	2,652				$	9,688
Income producing CRE			2,595					-					2,595
Commercial & industrial			892					-					892
Commercial construction			328					437					765
Total commercial			10,851					3,089					13,940
Residential mortgage			8,555					1,242					9,797
Home equity lines of credit			851					80					931
Residential construction			1,398					472					1,870
Consumer installment			998					-					998
Total NPAs		$	22,653				$	4,883				$	27,536
Balance as a % of
Unpaid Principal			71.4		%			34.2		%			59.8		%
NONPERFORMING ASSETS BY MARKET
North Georgia		$	5,167				$	1,612				$	6,779
Atlanta MSA			3,023					625					3,648
North Carolina			5,289					183					5,472
Coastal Georgia			2,079					-					2,079
Gainesville MSA			307					-					307
East Tennessee			3,448					157					3,605
South Carolina			323					2,306					2,629
Specialized Lending			2,231					-					2,231
Indirect auto			786					-					786
Total NPAs		$	22,653				$	4,883				$	27,536
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	20,064				$	7,669				$	27,733
Acquisitions			-					(1,585		)			(1,585		)
Loans placed on non-accrual			10,768					-					10,768
Payments received			(4,893		)			-					(4,893		)
Loan charge-offs			(1,813		)			-					(1,813		)
Foreclosures			(1,473		)			1,497					24
Capitalized costs			-					-					-
Property sales			-					(2,968		)			(2,968		)
Write downs			-					11					11
Net gains (losses) on sales			-					259					259
Ending Balance		$	22,653				$	4,883				$	27,536

 

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
		Fourth Quarter 2015								Third Quarter 2015								Second 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		$	861				.23	%		$	236				.07	%		$	285				.09	%
Income producing CRE			(35		)		(.02)				(106		)		(.06)				(276		)		(.17)
Commercial & industrial			(719		)		(.34)				190				.09				(627		)		(.33)
Commercial construction			253				.31				59				.09				96				.16
Total commercial			360				.04				379				.05				(522		)		(.07)
Residential mortgage			(120		)		(.05)				433				.18				787				.35
Home equity lines of credit			194				.13				293				.22				322				.27
Residential construction			415				.48				(124		)		(.16)				107				.14
Consumer installment			453				.33				436				.35				284				.26
Total		$	1,302				.09			$	1,417				.10			$	978				.08
NET CHARGE-OFFS BY MARKET
North Georgia		$	1,011				.36	%		$	1,352				.47	%		$	911				.32	%
Atlanta MSA			496				.16				74				.02				138				.04
North Carolina			426				.31				183				.13				176				.13
Coastal Georgia			47				.04				19				.02				(40		)		(.03)
Gainesville MSA			(340		)		(.54)				(236		)		(.36)				(233		)		(.36)
East Tennessee			(326		)		(.26)				153				.12				127				.11
South Carolina			(474		)		(.24)				(247		)		(.34)				-				-
Specialized Lending			253				.18				(42		)		(.03)				(224		)		(.17)
Indirect auto			209				.19				161				.17				123				.14
Total		$	1,302				.09			$	1,417				.10			$	978				.08
(1)  Annualized.

 

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
(in thousands, except per share data)			2015				2014				2015				2014
Interest revenue:
Loans, including fees		$	63,442			$	50,677			$	223,256			$	196,279
Investment securities, including tax exempt of $189, $180, $705 and $738			14,952				12,375				51,848				48,493
Deposits in banks and short-term investments			968				903				3,428				3,660
Total interest revenue			79,362				63,955				278,532				248,432
Interest expense:
Deposits:
NOW			426				435				1,505				1,651
Money market			1,006				868				3,466				3,060
Savings			27				20				98				81
Time			922				1,623				3,756				7,133
Total deposit interest expense			2,381				2,946				8,825				11,925
Short-term borrowings			85				96				364				2,160
Federal Home Loan Bank advances			436				339				1,743				912
Long-term debt			2,696				2,640				10,177				10,554
Total interest expense			5,598				6,021				21,109				25,551
Net interest revenue			73,764				57,934				257,423				222,881
Provision for credit losses			300				1,800				3,700				8,500
Net interest revenue after provision for credit losses			73,464				56,134				253,723				214,381
Fee revenue:
Service charges and fees			11,500				8,446				36,825				33,073
Mortgage loan and other related fees			3,290				2,111				13,592				7,520
Brokerage fees			1,058				1,176				5,041				4,807
Gains from sales of government guaranteed loans			1,995				926				6,276				2,615
Securities gains, net			378				208				2,255				4,871
Loss from prepayment of debt			-				-				(1,294	)			(4,446	)
Other			3,063				1,956				9,834				7,114
Total fee revenue			21,284				14,823				72,529				55,554
Total revenue			94,748				70,957				326,252				269,935
Operating expenses:
Salaries and employee benefits			32,939				26,592				116,688				100,941
Communications and equipment			4,735				3,153				15,273				12,523
Occupancy			4,666				3,448				15,372				13,513
Advertising and public relations			978				802				3,667				3,461
Postage, printing and supplies			1,293				1,086				4,273				3,542
Professional fees			3,331				2,034				10,175				7,907
FDIC assessments and other regulatory charges			1,463				883				5,106				4,792
Merger-related and other charges			9,078				-				17,995				-
Other			7,005				3,921				22,689				16,186
Total operating expenses			65,488				41,919				211,238				162,865
Net income before income taxes			29,260				29,038				115,014				107,070
Income tax expense			11,052				10,791				43,436				39,450
Net income			18,208				18,247				71,578				67,620
Preferred stock dividends and discount accretion			25				-				67				439
Net income available to common shareholders		$	18,183			$	18,247			$	71,511			$	67,181
Earnings per common share:
Basic		$	.25			$	.30			$	1.09			$	1.11
Diluted			.25				.30				1.09				1.11
Weighted average common shares outstanding:
Basic			72,135				60,830				65,488				60,588
Diluted			72,140				60,833				65,492				60,590

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
		December 31,				December 31,
(in thousands, except share and per share data)			2015				2014
ASSETS
Cash and due from banks		$	86,912			$	77,180
Interest-bearing deposits in banks			153,451				89,074
Short-term investments			-				26,401
Cash and cash equivalents			240,363				192,655
Securities available for sale			2,291,511				1,782,734
Securities held to maturity (fair value $371,658 and $425,233)			364,696				415,267
Mortgage loans held for sale			24,231				13,737
Loans, net of unearned income			5,995,441				4,672,119
Less allowance for loan losses			(68,448	)			(71,619	)
Loans, net			5,926,993				4,600,500
Premises and equipment, net			178,165				159,390
Bank owned life insurance			105,493				81,294
Accrued interest receivable			25,786				20,103
Net deferred tax asset			197,613				215,503
Derivative financial instruments			20,082				20,599
Goodwill and other intangible assets			147,420				3,641
Other assets			103,755				61,563
Total assets		$	9,626,108			$	7,566,986
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand		$	2,204,755			$	1,574,317
NOW			1,975,884				1,504,887
Money market			1,599,637				1,273,283
Savings			471,129				292,308
Time:
Less than $100,000			830,301				748,478
Greater than $100,000			452,502				508,228
Brokered			346,881				425,011
Total deposits			7,881,089				6,326,512
Short-term borrowings			16,640				6,000
Federal Home Loan Bank advances			430,125				270,125
Long-term debt			165,620				129,865
Derivative financial instruments			28,825				31,997
Unsettled securities purchases			2				5,425
Accrued expenses and other liabilities			85,522				57,485
Total liabilities			8,607,823				6,827,409
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 9,992 and 0 shares issued and outstanding			9,992				-
Common stock, $1 par value; 100,000,000 shares authorized;
66,198,477 and 50,178,605 shares issued and outstanding			66,198				50,178
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
5,285,516 and 10,080,787 shares issued and outstanding			5,286				10,081
Common stock issuable; 458,953 and 357,983 shares			6,779				5,168
Capital surplus			1,286,361				1,080,508
Accumulated deficit			(330,879	)			(387,568	)
Accumulated other comprehensive loss			(25,452	)			(18,790	)
Total shareholders' equity			1,018,285				739,577
Total liabilities and shareholders' equity		$	9,626,108			$	7,566,986

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
	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)	$	5,975,491			$	63,509		4.22	%		$	4,620,517			$	50,883		4.37	%
Taxable securities (3)		2,575,846				14,763		2.29				2,202,986				12,195		2.21
Tax-exempt securities (1)(3)		30,748				309		4.02				18,579				295		6.35
Federal funds sold and other interest-earning assets		210,341				1,065		2.03				170,703				980		2.30
Total interest-earning assets		8,792,426				79,646		3.60				7,012,785				64,353		3.65
Non-interest-earning assets:
Allowance for loan losses		(69,743	)									(72,534	)
Cash and due from banks		88,057										73,973
Premises and equipment		192,040										160,049
Other assets (3)		554,974										391,097
Total assets	$	9,557,754									$	7,565,370
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,865,305				426		.09			$	1,481,414				435		.12
Money market		1,897,364				1,006		.21				1,433,680				868		.24
Savings		465,993				27		.02				291,163				20		.03
Time less than $100,000		848,469				617		.29				761,850				814		.42
Time greater than $100,000		469,301				390		.33				520,937				763		.58
Brokered time deposits		258,698				(85	)	(.13	)			273,706				46		.07
Total interest-bearing deposits		5,805,130		-		2,381		.16				4,762,750		-		2,946		.25
Federal funds purchased and other borrowings		40,148				85		.84				24,750				96		1.54
Federal Home Loan Bank advances		191,484				436		.90				193,549				339		.69
Long-term debt		165,620				2,696		6.46				129,865				2,640		8.07
Total borrowed funds		397,252				3,217		3.21				348,164				3,075		3.50
Total interest-bearing liabilities		6,202,382				5,598		.36				5,110,914				6,021		.47
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,223,011										1,620,635
Other liabilities		111,757										95,679
Total liabilities		8,537,150										6,827,228
Shareholders' equity		1,020,604										738,142
Total liabilities and shareholders' equity	$	9,557,754									$	7,565,370
Net interest revenue					$	74,048									$	58,332
Net interest-rate spread								3.24	%									3.18	%
Net interest margin (4)								3.34	%									3.31	%
(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 $7.45 million in 2015 and pretax unrealized gains of $8.59
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.

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
	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)	$	5,297,687			$	223,713		4.22	%		$	4,450,268			$	197,039		4.43	%
Taxable securities (3)		2,342,533				51,143		2.18				2,255,084				47,755		2.12
Tax-exempt securities (1)(3)		25,439				1,154		4.54				19,279				1,209		6.27
Federal funds sold and other interest-earning assets		168,494				3,799		2.25				155,803				3,966		2.55
Total interest-earning assets		7,834,153				279,809		3.57				6,880,434				249,969		3.63
Non-interest-earning assets:
Allowance for loan losses		(71,001	)									(75,237	)
Cash and due from banks		81,244										67,818
Premises and equipment		174,835										161,391
Other assets (3)		442,878										401,240
Total assets	$	8,462,109									$	7,435,646
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,563,911				1,505		.10			$	1,396,373				1,651		.12
Money market		1,678,765				3,466		.21				1,389,837				3,060		.22
Savings		372,414				98		.03				277,351				81		.03
Time less than $100,000		788,737				2,840		.36				811,846				3,636		.45
Time greater than $100,000		480,623				1,983		.41				551,027				3,373		.61
Brokered time deposits		269,162				(1,067	)	(.40	)			293,657				124		.04
Total interest-bearing deposits		5,153,612				8,825		.17				4,720,091				11,925		.25
Federal funds purchased and other borrowings		49,301				364		.74				74,541				2,160		2.90
Federal Home Loan Bank advances		250,404				1,743		.70				175,481				912		.52
Long-term debt		139,979				10,177		7.27				129,865				10,554		8.13
Total borrowed funds		439,684				12,284		2.79				379,887				13,626		3.59
Total interest-bearing liabilities		5,593,296				21,109		.38				5,099,978				25,551		.50
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,901,521										1,507,944
Other liabilities		97,890										107,523
Total liabilities		7,592,707										6,715,445
Shareholders' equity		869,402										720,201
Total liabilities and shareholders' equity	$	8,462,109									$	7,435,646
Net interest revenue					$	258,700									$	224,418
Net interest-rate spread								3.19	%									3.13	%
Net interest margin (4)								3.30	%									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 $11.4 million in 2015 and pretax unrealized gains of $3.36
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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