United Community Banks, Inc. Reports Net Operating Income of $23.8 Million for Fourth Quarter 2015, up 30 Percent From a Year Ago

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United Community Banks, Inc. Reports Net Operating Income of $23.8 Million for Fourth Quarter 2015, up 30 Percent From a Year Ago

Jan 20, 2016

United Community Banks, Inc. Reports Net Operating Income of $23.8 Million for Fourth Quarter 2015, up 30 Percent From a Year Ago 289.4 KB

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

Press Release Details

United Community Banks, Inc. Reports Net Operating Income of $23.8 Million for Fourth Quarter 2015, up 30 Percent From a Year Ago