Press Release Details

 

• Operating earnings per diluted share of 33 cents, up 14 percent from first quarter of 2015
• Operating return on assets of 1.00 percent - compared to .94 percent a year ago
• Operating return on tangible common equity of 10.91 percent - up from 9.46 percent a year ago
• Loans up $111 million from the fourth quarter of 2015, or 7 percent annualized
• Core transaction deposits up $113 million from the fourth quarter of 2015, or 9 percent annualized

 

BLAIRSVILLE, Ga., April 27, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today reported first quarter results reflecting strong credit quality, capital management, profitability and growth.  Net operating income was $23.9 million, or 33 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share, in the first quarter of 2015.

 

Net operating income and net operating income per diluted share exclude merger-related and other charges.  Including those charges, first quarter 2016 net income was $22.3 million, or 31 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share in the first quarter of 2015.

 

At March 31, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.3 percent; Total Risk-Based of 12.3 percent; Common Equity Tier 1 Risk-Based of 11.3 percent; and, Tier 1 Leverage of 8.4 percent.

 

"Our first quarter results continue to demonstrate the growing potential of United and our focus on increasing returns to our shareholders. Our performance reflects our emphasis on maintaining a high-quality balance sheet, increasing profitability and generating growth," said Jimmy Tallent, chairman and chief executive officer.  "It underscores our ability to prudently grow our loan portfolio and high-quality, low-cost core deposits, maintain top-quartile credit quality, and expand fee revenue while maintaining operating expense discipline, and making strategic investments in technology, geographic market positioning, products and enhanced expertise.

 

"First quarter loan production was a solid $562 million," Tallent added.  "Loan growth was $111 million, or 7 percent annualized, in line with our 2016 target of a mid-to-upper-single-digit increase.  Our community banks originated $347 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $145 million.  Helping fund these loans was quarter-to-quarter core transaction deposit growth of $113 million, or 9 percent annualized.  Core deposits comprise 90 percent of total deposits, one of the best ratios in the country."

 

First quarter taxable-equivalent net interest revenue totaled $75.2 million, up $1.2 million from the fourth quarter of 2015 and up $17.6 million from the first quarter of 2015.  This increase reflects strong loan and core deposit growth, and an increase in the net interest margin.  The increase from the first quarter of 2015 also reflects net interest revenue from the Palmetto and First National Bank acquisitions.

 

The taxable-equivalent net interest margin of 3.41 percent reflected a seven basis point increase from the fourth quarter of 2015, and a 10 basis point increase from a year ago. The increase from the fourth quarter reflects higher yields on the loan and investment securities portfolios, offset slightly by a one basis point increase in the rate paid on interest-bearing liabilities.  Yields on floating rate loans and investment securities benefited from the full quarterly impact of the Federal Reserve Bank's December 2015 rate hike.

 

The first quarter provision for credit losses was negative $200,000 compared with positive provisions of $300,000 during the fourth quarter of 2015 and $1.8 million during the first quarter of 2015.  In addition to continued strong credit quality and a low overall level of net charge-offs, the first quarter negative provision reflects an overall improvement in a number of our largest troubled debt restructurings and the related release of reserves assigned specifically to them.

 

"Our credit quality indicators are very favorable, and our outlook is for this to continue, which will result in driving down our allowance for loan losses requirement," stated Tallent.  "While we strive to maintain a conservative allowance for loan losses, our recent loss history and improving credit measures continue to require us to decrease our allowance each quarter."

 

First quarter net charge-offs totaled $2.1 million compared with $1.3 million during the fourth quarter of 2015, and $2.6 million during the first quarter of 2015.  Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 from the first and second quarters of 2015.  Nonperforming assets were 0.28 percent of total assets at March 31, 2016, compared with 0.29 percent at December 31, 2015 and 0.26 percent a year ago.

 

First quarter fee revenue totaled $18.6 million, a decrease of $2.7 million from the fourth quarter of 2015. The decrease was mostly seasonal and primarily the result of a $1.4 million decline in service charges and fees, a $758,000 decline in gains from sales of SBA loans, and a $541,000 decline in other fee revenue.  First quarter fee revenue increased $2.9 million from the first quarter of 2015, primarily due to acquisitions.

 

During the first quarter of 2016, sales of $13.0 million in SBA loans resulted in net gains of $1.2 million. This compares with sales of $25.1 million and net gains of $2.0 million during the fourth quarter of 2015, and sales of $13.0 million and net gains of $1.1 million during the first quarter of 2015.

 

Operating expenses, excluding merger-related and other charges, were $55.2 million in the first quarter of 2016.  This compares to $56.4 million in the fourth quarter of 2015 and $43.1 million in the first quarter of 2015.

 

"The linked quarter decrease in operating expenses is primarily related to Palmetto cost savings, and is only part of the story," commented Tallent. "What also is important to our future growth are the substantial investments we made during the quarter in talented revenue producers.  To leverage the United brand and gain share in high-growth areas, during the first quarter we added eight new mortgage lenders in our metro markets. In our specialized lending areas, primarily in our SBA lending business we added 11 revenue producers. We also added three lenders in our loan production office in Charleston, South Carolina, and opened a new loan production office in Macon, Georgia.

 

"Consistent with this strategy, on April 4, 2016, we entered into a merger agreement with Tidelands Bancshares, Inc., the holding company for Tidelands Bank which is based in Mt. Pleasant, South Carolina," Tallent said.  "Tidelands Bank will merge into United Community Bank and operate under the United brand on the South Carolina coast, including Charleston, Hilton Head and Myrtle Beach.

 

"Following the opening of a loan production office in Charleston in the fourth quarter of 2015, this strategic purchase completes a two-step plan to launch and accelerate growth in attractive coastal South Carolina markets," said Tallent.  "The Tidelands agreement is expected to close in the third quarter and will be immediately accretive to operating earnings.  I am excited to have Thomas Lyles and his team join the United family.

 

"In the first quarter we maintained strong momentum and, with our talented bankers at work, we expect to do so again in the second quarter and throughout the remainder of 2016," Tallent said. "Our talented bankers are executing our plans as we maintain a high-quality balance sheet, increase profitability and generate growth."

 

Conference Call
United will hold a conference call today, Wednesday, April 27, 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 79143447.  The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

 

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia, with $9.8 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 135 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in providing personalized community banking services to individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management.  United Community Banks is consistently recognized for its outstanding customer service by respected national research firms.  In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and again in 2016 was ranked among the top 100 on the Forbes' list of America's Best Banks.  Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com. 

 

Safe Harbor
This News Release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment.  These statements are based on current expectations and are provided to assist in the understanding of future financial performance.  Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements.  For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2015 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors."  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
																					First
		2016			2015																Quarter
(in thousands, except per share	First				Fourth				Third				Second				First				2016-2015
data; fully taxable equivalent)	Quarter				Quarter				Quarter				Quarter				Quarter				Change
INCOME SUMMARY
Interest revenue (FTE)	$	80,991			$	79,646			$	71,120			$	66,134			$	62,909
Interest expense		5,769				5,598				5,402				4,817				5,292
Net interest revenue (FTE)		75,222				74,048				65,718				61,317				57,617				31		%
Provision for credit losses		(200	)			300				700				900				1,800
Fee revenue		18,606				21,284				18,297				17,266				15,682				19
Total revenue (FTE)		94,028				95,032				83,315				77,683				71,499				32
Expenses - operating  (1)		55,232				56,410				48,525				45,247				43,061				28
Income before income tax expense - (FTE) operating (1)		38,796				38,622				34,790				32,436				28,438				36
Income tax expense - (FTE) operating  (1)		14,852				14,822				13,064				12,447				10,768				38
Net income - operating  (1)		23,944				23,800				21,726				19,989				17,670				36
Preferred dividends and discount accretion		21				25				25				17				-
Net income available to common shareholders - operating  (1)		23,923				23,775				21,701				19,972				17,670				35
Merger-related and other charges, net of income tax benefit		1,649				5,592				3,839				2,176				-
Net income available to common   shareholders - GAAP	$	22,274			$	18,183			$	17,862			$	17,796			$	17,670				26
PERFORMANCE MEASURES
Per common share:
Diluted income - operating  (1)	$	.33			$	.33			$	.33			$	.32			$	.29				14
Diluted income - GAAP		.31				.25				.27				.28				.29				7
Cash dividends declared		.07				.06				.06				.05				.05
Book value		14.35				14.02				13.95				12.95				12.58				14
Tangible book value (3)		12.40				12.06				12.08				12.66				12.53				(1	)
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)(4)		10.91		%		10.87		%		10.29		%		10.20		%		9.46		%
Return on common equity - operating (1)(2)(4)		9.20				9.18				9.54				9.90				9.34
Return on common equity - GAAP (2)(4)		8.57				7.02				7.85				8.83				9.34
Return on assets - operating (1)(4)		1.00				.99				1.00				1.00				.94
Return on assets - GAAP (4)		.93				.76				.82				.89				.94
Dividend payout ratio - operating (1)		21.21				18.18				18.18				15.63				17.24
Dividend payout ratio - GAAP		22.58				24.00				22.22				17.86				17.24
Net interest margin (FTE) (4)		3.41				3.34				3.26				3.30				3.31
Efficiency ratio - operating  (1)		59.10				59.41				57.81				57.59				59.15
Efficiency ratio - GAAP		61.94				68.97				64.65				61.63				59.15
Average equity to average assets		10.72				10.68				10.39				10.05				9.86
Average tangible equity to average assets (3)		9.41				9.40				9.88				9.91				9.82
Average tangible common equity to   average assets (3)		9.32				9.29				9.77				9.83				9.82
Tangible common equity to risk-weighted   assets (3)(5)(6)		12.77				12.82				13.08				13.24				13.53
ASSET QUALITY
Nonperforming loans	$	22,419			$	22,653			$	20,064			$	18,805			$	19,015				18
Foreclosed properties		5,163				4,883				7,669				2,356				1,158				346
Total nonperforming assets (NPAs)		27,582				27,536				27,733				21,161				20,173				37
Allowance for loan losses		66,310				68,448				69,062				70,129				70,007				(5	)
Net charge-offs		2,138				1,302				1,417				978				2,562				(17	)
Allowance for loan losses to loans		1.09		%		1.14		%		1.15		%		1.36		%		1.46		%
Net charge-offs to average loans (4)		.14				.09				.10				.08				.22
NPAs to loans and foreclosed properties		.45				.46				.46				.41				.42
NPAs to total assets		.28				.29				.29				.26				.26
AVERAGE BALANCES ($ in millions)
Loans	$	6,004			$	5,975			$	5,457			$	5,017			$	4,725				27
Investment securities		2,718				2,607				2,396				2,261				2,203				23
Earning assets		8,876				8,792				8,009				7,444				7,070				26
Total assets		9,634				9,558				8,634				8,017				7,617				26
Deposits		7,947				8,028				7,135				6,669				6,369				25
Shareholders' equity		1,033				1,021				897				806				751				38
Common shares - basic (thousands)		72,162				72,135				66,294				62,549				60,905				18
Common shares - diluted (thousands)		72,166				72,140				66,300				62,553				60,909				18
AT PERIOD END ($ in millions)
Loans	$	6,106			$	5,995			$	6,024			$	5,174			$	4,788				28
Investment securities		2,757				2,656				2,457				2,322				2,201				25
Total assets		9,781				9,616				9,404				8,237				7,655				28
Deposits		7,960				7,873				7,897				6,800				6,430				24
Shareholders' equity		1,034				1,018				1,013				827				764				35
Common shares outstanding (thousands)		71,544				71,484				71,472				62,700				60,309				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) All periods are calculated under Basel III rules, which became effective January 1, 2015.  (6)  First quarter 2016 ratio is preliminary.

 

 

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2016			2015
(in thousands, except per share	First				Fourth				Third				Second				First
data; fully taxable equivalent)	Quarter				Quarter				Quarter				Quarter				Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	80,991			$	79,646			$	71,120			$	66,134			$	62,909
Taxable equivalent adjustment		(270	)			(284	)			(292	)			(326	)			(375	)
Interest revenue (GAAP)	$	80,721			$	79,362			$	70,828			$	65,808			$	62,534
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	75,222			$	74,048			$	65,718			$	61,317			$	57,617
Taxable equivalent adjustment		(270	)			(284	)			(292	)			(326	)			(375	)
Net interest revenue (GAAP)	$	74,952			$	73,764			$	65,426			$	60,991			$	57,242
Total revenue reconciliation
Total operating revenue	$	94,028			$	95,032			$	83,315			$	77,683			$	71,499
Taxable equivalent adjustment		(270	)			(284	)			(292	)			(326	)			(375	)
Total revenue (GAAP)	$	93,758			$	94,748			$	83,023			$	77,357			$	71,124
Expense reconciliation
Expenses - operating	$	55,232			$	56,410			$	48,525			$	45,247			$	43,061
Merger-related and other charges		2,653				9,078				5,744				3,173				-
Expenses (GAAP)	$	57,885			$	65,488			$	54,269			$	48,420			$	43,061
Income before taxes reconciliation
Income before taxes - operating	$	38,796			$	38,622			$	34,790			$	32,436			$	28,438
Taxable equivalent adjustment		(270	)			(284	)			(292	)			(326	)			(375	)
Merger-related and other charges		(2,653	)			(9,078	)			(5,744	)			(3,173	)			-
Income before taxes (GAAP)	$	35,873			$	29,260			$	28,754			$	28,937			$	28,063
Income tax expense reconciliation
Income tax expense - operating	$	14,852			$	14,822			$	13,064			$	12,447			$	10,768
Taxable equivalent adjustment		(270	)			(284	)			(292	)			(326	)			(375	)
Merger-related and other charges, tax benefit		(1,004	)			(3,486	)			(1,905	)			(997	)			-
Income tax expense (GAAP)	$	13,578			$	11,052			$	10,867			$	11,124			$	10,393
Net income reconciliation
Net income - operating	$	23,944			$	23,800			$	21,726			$	19,989			$	17,670
Merger-related and other charges, net of income tax benefit		(1,649	)			(5,592	)			(3,839	)			(2,176	)			-
Net income (GAAP)	$	22,295			$	18,208			$	17,887			$	17,813			$	17,670
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	23,923			$	23,775			$	21,701			$	19,972			$	17,670
Merger-related and other charges, net of income tax benefit		(1,649	)			(5,592	)			(3,839	)			(2,176	)			-
Net income available to common shareholders (GAAP)	$	22,274			$	18,183			$	17,862			$	17,796			$	17,670
Diluted income per common share reconciliation
Diluted income per common share - operating	$	.33			$	.33			$	.33			$	.32			$	.29
Merger-related and other charges		(.02	)			(.08	)			(.06	)			(.04	)			-
Diluted income per common share (GAAP)	$	.31			$	.25			$	.27			$	.28			$	.29
Book value per common share reconciliation
Tangible book value per common share	$	12.40			$	12.06			$	12.08			$	12.66			$	12.53
Effect of goodwill and other intangibles		1.95				1.96				1.87				.29				.05
Book value per common share (GAAP)	$	14.35			$	14.02			$	13.95			$	12.95			$	12.58
Return on tangible common equity reconciliation
Return on tangible common equity - operating		10.91		%		10.87		%		10.29		%		10.20		%		9.46		%
Effect of goodwill and other intangibles		(1.71	)			(1.69	)			(.75	)			(.30	)			(.12	)
Return on common equity - operating		9.20				9.18				9.54				9.90				9.34
Merger-related and other charges		(.63	)			(2.16	)			(1.69	)			(1.07	)			-
Return on common equity (GAAP)		8.57		%		7.02		%		7.85		%		8.83		%		9.34		%
Return on assets reconciliation
Return on assets - operating		1.00		%		.99		%		1.00		%		1.00		%		.94		%
Merger-related  and other charges		(.07	)			(.23	)			(.18	)			(.11	)			-
Return on assets (GAAP)		.93		%		.76		%		.82		%		.89		%		.94		%
Dividend payout ratio reconciliation
Dividend payout ratio - operating		21.21		%		18.18		%		18.18		%		15.63		%		17.24		%
Merger-related and other charges		1.37				5.82				4.04				2.23				-
Dividend payout ratio (GAAP)		22.58		%		24.00		%		22.22		%		17.86		%		17.24		%
Efficiency ratio reconciliation
Efficiency ratio - operating		59.10		%		59.41		%		57.81		%		57.59		%		59.15		%
Merger-related and other charges		2.84				9.56				6.84				4.04				-
Efficiency ratio (GAAP)		61.94		%		68.97		%		64.65		%		61.63		%		59.15		%
Average equity to assets reconciliation
Tangible common equity to assets		9.32		%		9.29		%		9.77		%		9.83		%		9.82		%
Effect of preferred equity		.09				.11				.11				.08				-
Tangible equity to assets		9.41				9.40				9.88				9.91				9.82
Effect of goodwill and other intangibles		1.31				1.28				.51				.14				.04
Equity to assets (GAAP)		10.72		%		10.68		%		10.39		%		10.05		%		9.86		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets		12.77		%		12.82		%		13.08		%		13.24		%		13.53		%
Effect of other comprehensive income		.25				.38				.23				.28				.19
Effect of deferred tax limitation		(1.85	)			(2.05	)			(2.24	)			(2.49	)			(2.86	)
Effect of trust preferred		.08				.08				.08				.63				.67
Effect of preferred equity		-				.15				.15				.17				-
Basel III intangibles transition adjustment		.07				.10				.13				.06				.04
Basel III disallowed investments		-				(.03	)			(.03	)			(.03	)			(.04	)
Tier I capital ratio (Regulatory)		11.32		%		11.45		%		11.40		%		11.86		%		11.53		%
(1)  First quarter 2016 ratios are preliminary.

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
		2016				2015
		First				Fourth				Third				Second				First
(in millions)		Quarter				Quarter				Quarter				Quarter				Quarter
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,434			$	1,494			$	1,479			$	1,266			$	1,167
Income producing commercial RE			880				824				818				689				636
Commercial & industrial			855				785				890				793				716
Commercial construction			354				342				319				238				230
Total commercial			3,523				3,445				3,506				2,986				2,749
Residential mortgage			1,032				1,029				1,062				935				864
Home equity lines of credit			604				598				585				491				465
Residential construction			348				352				334				299				291
Consumer installment			599				571				537				463				419
Total loans		$	6,106			$	5,995			$	6,024			$	5,174			$	4,788
LOANS BY MARKET
North Georgia		$	1,097			$	1,125			$	1,130			$	1,155			$	1,150
Atlanta MSA			1,257				1,259				1,266				1,275				1,254
North Carolina			543				549				546				533				539
Coastal Georgia			543				537				506				499				476
Gainesville MSA			248				254				252				257				255
East Tennessee			495				504				511				525				281
South Carolina			821				819				783				35				30
Specialized Lending			628				492				609				538				487
Indirect auto			474				456				421				357				316
Total loans		$	6,106			$	5,995			$	6,024			$	5,174			$	4,788

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
		2016				2015								Linked Quarter Change				Year over Year Change
		First				Fourth				First
(in millions)		Quarter				Quarter				Quarter
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,434			$	1,494			$	1,167			$	(60	)		$	267
Income producing commercial RE			880				824				636				56				244
Commercial & industrial			855				785				716				70				139
Commercial construction			354				342				230				12				124
Total commercial			3,523				3,445				2,749				78				774
Residential mortgage			1,032				1,029				864				3				168
Home equity lines of credit			604				598				465				6				139
Residential construction			348				352				291				(4	)			57
Consumer installment			599				571				419				28				180
Total loans		$	6,106			$	5,995			$	4,788				111				1,318
LOANS BY MARKET
North Georgia		$	1,097			$	1,125			$	1,150				(28	)			(53	)
Atlanta MSA			1,257				1,259				1,254				(2	)			3
North Carolina			543				549				539				(6	)			4
Coastal Georgia			543				537				476				6				67
Gainesville MSA			248				254				255				(6	)			(7	)
East Tennessee			495				504				281				(9	)			214
South Carolina			821				819				30				2				791
Specialized Lending			628				492				487				136				141
Indirect auto			474				456				316				18				158
Total loans		$	6,106			$	5,995			$	4,788				111				1,318

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		First Quarter 2016
		Nonperforming					Foreclosed					Total
(in thousands)		Loans					Properties					NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	6,775				$	2,864				$	9,639
Income producing CRE			2,959					-					2,959
Commercial & industrial			978					-					978
Commercial construction			266					152					418
Total commercial			10,978					3,016					13,994
Residential mortgage			8,037					1,587					9,624
Home equity lines of credit			1,198					125					1,323
Residential construction			1,122					435					1,557
Consumer installment			1,084					-					1,084
Total NPAs		$	22,419				$	5,163				$	27,582
Balance as a % of
Unpaid Principal			69.3		%			38.2		%			60.1		%
NONPERFORMING ASSETS BY MARKET
North Georgia		$	5,353				$	1,233				$	6,586
Atlanta MSA			2,796					902					3,698
North Carolina			4,860					559					5,419
Coastal Georgia			1,696					121					1,817
Gainesville MSA			250					-					250
East Tennessee			3,470					351					3,821
South Carolina			935					1,997					2,932
Specialized Lending			2,186					-					2,186
Indirect auto			873					-					873
Total NPAs		$	22,419				$	5,163				$	27,582
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	22,653				$	4,883				$	27,536
Acquisitions			-					-					-
Loans placed on non-accrual			4,771					-					4,771
Payments received			(1,812		)			-					(1,812		)
Loan charge-offs			(1,679		)			-					(1,679		)
Foreclosures			(1,514		)			1,590					76
Capitalized costs			-					-					-
Property sales			-					(1,524		)			(1,524		)
Write downs			-					(7		)			(7		)
Net gains (losses) on sales			-					221					221
Ending Balance		$	22,419				$	5,163				$	27,582

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		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
		First Quarter 2016								Fourth Quarter 2015								Third 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		$	304				.08	%		$	861				.23	%		$	236				.07	%
Income producing CRE			211				.10				(35		)		(.02	)			(106		)		(.06	)
Commercial & industrial			283				.14				(719		)		(.34	)			190				.09
Commercial construction			286				.33				253				.31				59				.09
Total commercial			1,084				.13				360				.04				379				.05
Residential mortgage			50				.02				(120		)		(.05	)			433				.18
Home equity lines of credit			632				.43				194				.13				293				.22
Residential construction			(103		)		(.12	)			415				.48				(124		)		(.16	)
Consumer installment			475				.33				453				.33				436				.35
Total		$	2,138				.14			$	1,302				.09			$	1,417				.10
NET CHARGE-OFFS BY MARKET
North Georgia		$	913				.33	%		$	1,011				.36	%		$	1,352				.47	%
Atlanta MSA			(25		)		(.01	)			496				.16				74				.02
North Carolina			382				.28				426				.31				183				.13
Coastal Georgia			196				.15				47				.04				19				.02
Gainesville MSA			98				.16				(340		)		(.54	)			(236		)		(.36	)
East Tennessee			378				.31				(326		)		(.26	)			153				.12
South Carolina			(16		)		(.01	)			(474		)		(.24	)			(247		)		(.34	)
Specialized Lending			4				-				253				.18				(42		)		(.03	)
Indirect auto			208				.19				209				.19				161				.17
Total		$	2,138				.14			$	1,302				.09			$	1,417				.10
(1)  Annualized.

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
		Three Months Ended
		March 31,
(in thousands, except per share data)			2016				2015
Interest revenue:
Loans, including fees		$	63,976			$	49,664
Investment securities, including tax exempt of $166 and $158			15,788				12,058
Deposits in banks and short-term investments			957				812
Total interest revenue			80,721				62,534
Interest expense:
Deposits:
NOW			485				394
Money market			1,108				673
Savings			29				20
Time			642				1,109
Total deposit interest expense			2,264				2,196
Short-term borrowings			87				98
Federal Home Loan Bank advances			733				392
Long-term debt			2,685				2,606
Total interest expense			5,769				5,292
Net interest revenue			74,952				57,242
Provision for credit losses			(200	)			1,800
Net interest revenue after provision for credit losses			75,152				55,442
Fee revenue:
Service charges and fees			10,126				7,615
Mortgage loan and other related fees			3,289				2,755
Brokerage fees			1,053				1,551
Gains from sales of government guaranteed loans			1,237				1,141
Securities gains, net			379				1,539
Loss from prepayment of debt			-				(1,038	)
Other			2,522				2,119
Total fee revenue			18,606				15,682
Total revenue			93,758				71,124
Operating expenses:
Salaries and employee benefits			33,062				26,446
Communications and equipment			4,290				3,271
Occupancy			4,723				3,278
Advertising and public relations			864				750
Postage, printing and supplies			1,280				938
Professional fees			2,700				1,919
FDIC assessments and other regulatory charges			1,524				1,209
Amortization of intangibles			1,010				242
Merger-related and other charges			2,653				-
Other			5,779				5,008
Total operating expenses			57,885				43,061
Net income before income taxes			35,873				28,063
Income tax expense			13,578				10,393
Net income			22,295				17,670
Preferred stock dividends and discount accretion			21				-
Net income available to common shareholders		$	22,274			$	17,670
Earnings per common share:
Basic		$	.31			$	.29
			.31				.29
Weighted average common shares outstanding:
Basic			72,162				60,905
Diluted			72,166				60,909

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
		March 31,				December 31,				March 31,
(in thousands, except share and per share data)			2016				2015				2015
ASSETS
Cash and due from banks		$	93,821			$	86,912			$	77,493
Interest-bearing deposits in banks			88,995				153,451				82,269
Short-term investments			-				-				25,902
Cash and cash equivalents			182,816				240,363				185,664
Securities available for sale			2,405,467				2,291,511				1,801,973
Securities held to maturity (fair value $363,092, $371,658 and $413,550)			351,700				364,696				399,228
Mortgage loans held for sale			26,578				24,231				15,723
Loans, net of unearned income			6,106,189				5,995,441				4,787,689
Less allowance for loan losses			(66,310	)			(68,448	)			(70,007	)
Loans, net			6,039,879				5,926,993				4,717,682
Premises and equipment, net			180,690				178,165				159,036
Bank owned life insurance			105,803				105,493				81,490
Accrued interest receivable			25,893				25,786				20,154
Net deferred tax asset			180,371				197,613				201,898
Derivative financial instruments			23,488				20,082				20,291
Goodwill and other intangible assets			146,409				147,420				3,399
Other assets			112,237				94,075				47,998
Total assets		$	9,781,331			$	9,616,428			$	7,654,536
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand		$	2,370,842			$	2,204,755			$	1,694,755
NOW			1,794,241				1,975,884				1,420,956
Money market			1,630,565				1,599,637				1,306,421
Savings			491,542				471,129				312,013
Time			1,233,647				1,282,803				1,206,278
Brokered			439,486				338,985				489,141
Total deposits			7,960,323				7,873,193				6,429,564
Repurchase agreements			-				16,640				-
Federal Home Loan Bank advances			510,125				430,125				270,125
Long-term debt			163,955				163,836				112,901
Derivative financial instruments			31,374				28,825				29,276
Accrued expenses and other liabilities			81,829				85,524				48,965
Total liabilities			8,747,606				8,598,143				6,890,831
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 0, 9,992 and 0 shares issued and outstanding			-				9,992				-
Common stock, $1 par value; 100,000,000 shares authorized;
66,258,777, 66,198,477 and 50,228,075 shares issued and outstanding			66,259				66,198				50,228
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
5,285,516, 5,285,516 and 10,080,787 shares issued and outstanding			5,286				5,286				10,081
Common stock issuable; 496,515, 458,953 and 400,369 shares			6,700				6,779				5,895
Capital surplus			1,286,884				1,286,361				1,081,110
Accumulated deficit			(313,646	)			(330,879	)			(372,933	)
Accumulated other comprehensive loss			(17,758	)			(25,452	)			(10,676	)
Total shareholders' equity			1,033,725				1,018,285				763,705
Total liabilities and shareholders' equity		$	9,781,331			$	9,616,428			$	7,654,536

 

 

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
	2016										2015
	Average							Avg.			Average							Avg.
(dollars in thousands, fully taxable equivalent)	Balance				Interest			Rate			Balance				Interest			Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)	$	6,003,568			$	64,044		4.29	%		$	4,725,304			$	49,865		4.28	%
Taxable securities (3)		2,688,564				15,622		2.32				2,186,756				11,900		2.18
Tax-exempt securities (1)(3)		29,744				272		3.66				16,236				259		6.38
Federal funds sold and other interest-earning assets		153,759				1,053		2.74				141,414				885		2.50
Total interest-earning assets		8,875,635				80,991		3.67				7,069,710				62,909		3.60
Non-interest-earning assets:
Allowance for loan losses		(68,473	)									(72,192	)
Cash and due from banks		85,635										79,025
Premises and equipment		180,090										159,502
Other assets (3)		561,261										381,300
Total assets	$	9,634,148									$	7,617,345
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,886,472				485		.10			$	1,475,913				394		.11
Money market		1,840,584				1,108		.24				1,466,913				673		.19
Savings		480,238				29		.02				300,344				20		.03
Time		1,259,689				817		.26				1,231,705				1,388		.46
Brokered time deposits		233,213				(175	)	(.30	)			273,327				(279	)	(.41	)
Total interest-bearing deposits		5,700,196				2,264		.16				4,748,202				2,196		.19
Federal funds purchased and other borrowings		34,906				87		1.00				36,145				98		1.10
Federal Home Loan Bank advances		346,169				733		.85				239,181				392		.66
Long-term debt		165,419				2,685		6.53				127,740				2,606		8.27
Total borrowed funds		546,494				3,505		2.58				403,066				3,096		3.12
Total interest-bearing liabilities		6,246,690				5,769		.37				5,151,268				5,292		.42
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,247,041										1,620,984
Other liabilities		107,320										94,207
Total liabilities		8,601,051										6,866,459
Shareholders' equity		1,033,097										750,886
Total liabilities and shareholders' equity	$	9,634,148									$	7,617,345
Net interest revenue					$	75,222									$	57,617
Net interest-rate spread								3.30	%									3.18	%
Net interest margin (4)								3.41	%									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 $2.20 million in 2016 and pretax unrealized gains of $10.8
million in 2015 are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

 

Source: United Community Banks, Inc.

 

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