|
Georgia
|
No. 001-35095
|
No. 58-180-7304
|
|
(State or other jurisdiction of
|
(Commission File Number)
|
(IRS Employer
|
|
incorporation)
|
Identification No.)
|
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))
|
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|
On October 23, 2014, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended September 30, 2014 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. In connection with issuing the News Release, on October 23, 2014 at 11:00 a.m. ET, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Third Quarter 2014 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The presentation of the Registrant’s financial results includes core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Core earnings measures exclude credit related costs such as the provision for loan losses and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings measures are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods.
Core earnings measures should be viewed in addition to, and not as an alternative to or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.
|
|
Item 9.01
|
Financial Statements and Exhibits.
|
|
|
(d)
|
Exhibits
|
|
|
Exhibit
No.
|
Description
|
|
|
99.1
|
News Release, dated October 23, 2014
|
|
|
99.2
|
Investor Presentation, Third Quarter 2014
|
|
UNITED COMMUNITY BANKS, INC.
|
|||
|
By:
|
/s/ Rex S. Schuette
|
||
|
Rex S. Schuette
|
|||
|
Executive Vice President and
|
|||
|
Chief Financial Officer
|
|||
|
Date: October 23, 2014
|
|||
Exhibit 99.1
For Immediate Release
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
UNITED COMMUNITY BANKS, INC. REPORTS
EARNINGS OF $17.6 MILLION FOR THIRD QUARTER 2014,
UP 38 PERCENT FROM A YEAR AGO
- Earnings are 29 cents per diluted share, up 7 percent from second quarter and 38 percent from a year ago
- Loans up $159 million, or 14 percent annualized
- Net interest margin increases 11 basis points from second quarter
- Core transaction deposits up $90 million, or 10 percent annualized
BLAIRSVILLE, GA – October 23, 2014 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported net income of $17.6 million, or 29 cents per diluted share, for the third quarter of 2014. Earnings per share were up 7 percent from the second quarter, reflecting strong loan growth, a widening net interest margin, and growth in fee revenue. For the first nine months of 2014, United reported net income of $49.4 million, or 81 cents per diluted share.
“By all measures, we had an exceptional third quarter,” said Jimmy Tallent, president and chief executive officer. “Strong loan growth and an expanding net interest margin increased net interest revenue by $2 million over the second quarter. Our return on assets rose to 95 basis points, seven basis points higher than the second quarter, and close to our goal of 1 percent. Also, our return on equity was 9.4 percent, up 200 basis points from a year ago.
| 1 |
“Third quarter net loan growth of $159 million was driven by strong production across all of our markets,” stated Tallent. “Our strongest area, specialized lending, increased $132 million. This category includes health care, corporate, SBA, asset-based and commercial real estate lending. We also saw solid growth in our Coastal Georgia and Tennessee markets.”
Third quarter taxable equivalent net interest revenue totaled $57.0 million, up $2.0 million from the second quarter and up $2.7 million from the third quarter of 2013. The taxable equivalent net interest margin was 3.32 percent, up 11 basis points from the second quarter and six basis points from a year ago.
“Preserving our net interest margin and growing net interest revenue, while minimizing exposure to changes in interest rates, have been top priorities for growing earnings per share,” said Tallent. “Our third quarter results confirm that we are on the right path. We remain sharply focused on growing loans and core deposits to increase net interest revenue, while expanding products to grow fee revenue. Second quarter balance sheet management activities, which included restructuring the securities portfolio, interest rate hedges and wholesale borrowings, contributed to the widening net interest margin and growth in net interest revenue. We expect our margin to stabilize at the current level into the fourth quarter and 2015. We are seeing the results of these efforts positively impact our earnings growth.”
The third quarter provision for credit losses was $2.0 million, down $200,000 from the second quarter and down $1.0 million from the third quarter of 2013. Third quarter net charge-offs were $3.16 million, compared with $4.18 million in the second quarter and $4.47 million a year ago. Nonperforming assets at quarter-end were $21.9 million, down 8 percent from the second quarter and 28 percent from a year ago. Nonperforming assets at quarter-end represented .29 percent of total assets, compared to .32 percent last quarter and .42 percent a year ago.
Third quarter fee revenue totaled $14.4 million, up $269,000 from the second quarter and $187,000 from the third quarter of 2013. Most of the increase from both prior periods resulted from our growing SBA lending business and related gains on the sales of SBA loans. In the third quarter of 2014, we generated gains on these sales of $945,000 compared with $744,000 in the second quarter. There were no gains from the sale of SBA loans in the third quarter of 2013.
Service charges and fees dipped slightly from both the second quarter and a year ago, mostly due to lower debit card interchange fees. Overdraft fees were also down from the third quarter of 2013. Mortgage fees were up $301,000 from the second quarter, but down $376,000 from a year ago, the decrease reflecting slower mortgage refinancing activity. Closed mortgage loans totaled $84.2 million in the third quarter compared with $68.5 million in the second quarter and $76.6 million in the third quarter of 2013.
| 2 |
Operating expenses were $41.4 million in the third quarter compared to $40.5 million in the second quarter and $40.1 million a year ago. The increase from both prior periods is mostly due to higher staff and incentive costs. Third quarter compensation expense reflects the full cost of additional personnel added through the acquisition of Business Carolina, Inc., which occurred late in the second quarter, as well as staff added for our new vertical SBA business. Occupancy expense was up from the second quarter and a year ago due to higher utilities and maintenance charges, including lease costs for new locations.
Offsetting these increases was a reduction in the deposit insurance assessment rate due to improvement in our credit measures. Additionally, advertising costs were down $245,000 due to one-time branding costs in the second quarter, and other expenses decreased $537,000 primarily due to $486,000 in branch closure and loss share asset costs that were written off last quarter.
“Our operating efficiency ratio improved to 57.96 percent in the third quarter, compared to 58.65 percent in the second quarter,” Tallent said. “We continue to focus on growing revenue while controlling costs.”
On September 30, 2014, capital ratios were as follows: Tier 1 Risk-Based of 12.1 percent; Total Risk-Based of 13.3 percent; Tier 1 Common Risk-Based of 11.0 percent; and Tier 1 Leverage of 8.7 percent.
“We are beginning to see meaningful improvement in our financial results, reflecting the successes of our strategic growth initiatives,” Tallent said. “Our focus on expanding the net interest margin and growing loans, deposits and fee revenue is driving earnings growth. In the third quarter, we saw a return of strong loan growth and meaningful margin expansion despite the ongoing challenging economic environment. Strategic investments in people and new businesses are driving our growth. We will continue investing in our future by hiring top talent to grow our business. As our third quarter results demonstrate, we are on the right track.”
| 3 |
Conference Call
United will hold a conference call today, Thursday, October 23, 2014, 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 16941301. The conference call also will be webcast and can be accessed by selecting “Calendar of Events” 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 $7.5 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. 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 2013 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.
# # #
| 4 |
|
UNITED COMMUNITY BANKS, INC.
|
||
|
Financial Highlights
|
||
|
Selected Financial Information
|
||
|
|
Third
|
For the Nine
|
||||||||||||||||||||||||||||||||||
|
2014
|
2013
|
Quarter
|
Months Ended
|
YTD
|
||||||||||||||||||||||||||||||||
|
(in thousands, except per share
|
Third
|
Second
|
First
|
Fourth
|
Third
|
2014-2013 |
September 30,
|
2014-2013 | ||||||||||||||||||||||||||||
|
data; taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Change
|
2014 | 2013 |
Change
|
|||||||||||||||||||||||||||
|
INCOME SUMMARY
|
||||||||||||||||||||||||||||||||||||
|
Interest revenue
|
$ | 63,338 | $ | 61,783 | $ | 60,495 | $ | 61,695 | $ | 61,426 | $ | 185,616 | $ | 185,628 | ||||||||||||||||||||||
|
Interest expense
|
6,371 | 6,833 | 6,326 | 5,816 | 7,169 | 19,530 | 21,866 | |||||||||||||||||||||||||||||
|
Net interest revenue
|
56,967 | 54,950 | 54,169 | 55,879 | 54,257 | 5 | % | 166,086 | 163,762 | 1 | % | |||||||||||||||||||||||||
|
Provision for credit losses
|
2,000 | 2,200 | 2,500 | 3,000 | 3,000 | 6,700 | 62,500 | |||||||||||||||||||||||||||||
|
Fee revenue
|
14,412 | 14,143 | 12,176 | 13,519 | 14,225 | 1 | 40,731 | 43,079 | (5 | ) | ||||||||||||||||||||||||||
|
Total revenue
|
69,379 | 66,893 | 63,845 | 66,398 | 65,482 | 200,117 | 144,341 | |||||||||||||||||||||||||||||
|
Operating expenses
|
41,364 | 40,532 | 39,050 | 41,614 | 40,097 | 3 | 120,946 | 132,690 | (9 | ) | ||||||||||||||||||||||||||
|
Income before income taxes
|
28,015 | 26,361 | 24,795 | 24,784 | 25,385 | 10 | 79,171 | 11,651 | ||||||||||||||||||||||||||||
|
Income tax expense (benefit)
|
10,399 | 10,004 | 9,395 | 8,873 | 9,885 | 29,798 | (245,578 | ) | ||||||||||||||||||||||||||||
|
Net income
|
17,616 | 16,357 | 15,400 | 15,911 | 15,500 | 14 | 49,373 | 257,229 | ||||||||||||||||||||||||||||
|
Preferred dividends and discount accretion
|
- | - | 439 | 2,912 | 3,059 | 439 | 9,166 | |||||||||||||||||||||||||||||
|
Net income available to common shareholders
|
$ | 17,616 | $ | 16,357 | $ | 14,961 | $ | 12,999 | $ | 12,441 | 42 | $ | 48,934 | $ | 248,063 | |||||||||||||||||||||
|
PERFORMANCE MEASURES
|
||||||||||||||||||||||||||||||||||||
|
Per common share:
|
||||||||||||||||||||||||||||||||||||
|
Diluted income
|
$ | .29 | $ | .27 | $ | .25 | $ | .22 | $ | .21 | 38 | $ | .81 | $ | 4.24 | |||||||||||||||||||||
|
Book value
|
12.15 | 11.94 | 11.66 | 11.30 | 10.99 | 11 | 12.15 | 10.99 | 11 | |||||||||||||||||||||||||||
|
Tangible book value (2)
|
12.10 | 11.91 | 11.63 | 11.26 | 10.95 | 11 | 12.10 | 10.95 | 11 | |||||||||||||||||||||||||||
|
Key performance ratios:
|
||||||||||||||||||||||||||||||||||||
|
Return on common equity (1)(3)
|
9.41 | % | 8.99 | % | 8.64 | % | 7.52 | % | 7.38 |
%
|
9.02 | % | 64.29 |
%
|
||||||||||||||||||||||
|
Return on assets (3)
|
.95 | .88 | .85 | .86 | .86 | .89 | 4.93 | |||||||||||||||||||||||||||||
|
Net interest margin (3)
|
3.32 | 3.21 | 3.21 | 3.26 | 3.26 | 3.25 | 3.32 | |||||||||||||||||||||||||||||
|
Efficiency ratio
|
57.96 | 58.65 | 59.05 | 60.02 | 58.55 | 58.54 | 64.19 | |||||||||||||||||||||||||||||
|
Equity to assets
|
9.85 | 9.61 | 9.52 | 11.62 | 11.80 | 9.66 | 9.91 | |||||||||||||||||||||||||||||
|
Tangible equity to assets (2)
|
9.83 | 9.58 | 9.50 | 11.59 | 11.76 | 9.64 | 9.85 | |||||||||||||||||||||||||||||
|
Tangible common equity to assets (2)
|
9.83 | 9.58 | 9.22 | 8.99 | 9.02 | 9.55 | 7.04 | |||||||||||||||||||||||||||||
|
Tangible common equity to risk- weighted assets (2)
|
14.10 | 13.92 | 13.63 | 13.18 | 13.34 | 14.10 | 13.34 | |||||||||||||||||||||||||||||
|
ASSET QUALITY *
|
||||||||||||||||||||||||||||||||||||
|
Non-performing loans
|
$ | 18,745 | $ | 20,724 | $ | 25,250 | $ | 26,819 | $ | 26,088 | $ | 18,745 | $ | 26,088 | ||||||||||||||||||||||
|
Foreclosed properties
|
3,146 | 2,969 | 5,594 | 4,221 | 4,467 | 3,146 | 4,467 | |||||||||||||||||||||||||||||
|
Total non-performing assets (NPAs)
|
21,891 | 23,693 | 30,844 | 31,040 | 30,555 | 21,891 | 30,555 | |||||||||||||||||||||||||||||
|
Allowance for loan losses
|
71,928 | 73,248 | 75,223 | 76,762 | 80,372 | 71,928 | 80,372 | |||||||||||||||||||||||||||||
|
Net charge-offs
|
3,155 | 4,175 | 4,039 | 4,445 | 4,473 | 11,369 | 89,265 | |||||||||||||||||||||||||||||
|
Allowance for loan losses to loans
|
1.57 | % | 1.66 | % | 1.73 | % | 1.77 | % | 1.88 | % | 1.57 | % | 1.88 | % | ||||||||||||||||||||||
|
Net charge-offs to average loans (3)
|
.28 | .38 | .38 | .41 | .42 | .35 | 2.84 | |||||||||||||||||||||||||||||
|
NPAs to loans and foreclosed properties
|
.48 | .54 | .71 | .72 | .72 | .48 | .72 | |||||||||||||||||||||||||||||
|
NPAs to total assets
|
.29 | .32 | .42 | .42 | .42 | .29 | .42 | |||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
AVERAGE BALANCES ($ in millions)
|
||||||||||||||||||||||||||||||||||||
|
Loans
|
$ | 4,446 | $ | 4,376 | $ | 4,356 | $ | 4,315 | $ | 4,250 | 5 | $ | 4,393 | $ | 4,234 | 4 | ||||||||||||||||||||
|
Investment securities
|
2,231 | 2,326 | 2,320 | 2,280 | 2,178 | 2 | 2,292 | 2,160 | 6 | |||||||||||||||||||||||||||
|
Earning assets
|
6,820 | 6,861 | 6,827 | 6,823 | 6,615 | 3 | 6,836 | 6,590 | 4 | |||||||||||||||||||||||||||
|
Total assets
|
7,374 | 7,418 | 7,384 | 7,370 | 7,170 | 3 | 7,392 | 6,974 | 6 | |||||||||||||||||||||||||||
|
Deposits
|
6,143 | 6,187 | 6,197 | 6,190 | 5,987 | 3 | 6,176 | 5,972 | 3 | |||||||||||||||||||||||||||
|
Shareholders’ equity
|
726 | 713 | 703 | 856 | 846 | (14 | ) | 714 | 691 | 3 | ||||||||||||||||||||||||||
|
Common shares - basic (thousands)
|
60,776 | 60,712 | 60,059 | 59,923 | 59,100 | 60,511 | 58,443 | |||||||||||||||||||||||||||||
|
Common shares - diluted (thousands)
|
60,779 | 60,714 | 60,061 | 59,925 | 59,202 | 60,513 | 58,444 | |||||||||||||||||||||||||||||
|
AT PERIOD END ($ in millions)
|
||||||||||||||||||||||||||||||||||||
|
Loans *
|
$ | 4,569 | $ | 4,410 | $ | 4,356 | $ | 4,329 | $ | 4,267 | 7 | $ | 4,569 | $ | 4,267 | 7 | ||||||||||||||||||||
|
Investment securities
|
2,222 | 2,190 | 2,302 | 2,312 | 2,169 | 2 | 2,222 | 2,169 | 2 | |||||||||||||||||||||||||||
|
Total assets
|
7,526 | 7,352 | 7,398 | 7,425 | 7,243 | 4 | 7,526 | 7,243 | 4 | |||||||||||||||||||||||||||
|
Deposits
|
6,241 | 6,164 | 6,248 | 6,202 | 6,113 | 2 | 6,241 | 6,113 | 2 | |||||||||||||||||||||||||||
|
Shareholders’ equity
|
736 | 722 | 704 | 796 | 852 | (14 | ) | 736 | 852 | (14 | ) | |||||||||||||||||||||||||
|
Common shares outstanding (thousands)
|
60,248 | 60,139 | 60,092 | 59,432 | 59,412 | 60,248 | 59,412 | |||||||||||||||||||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
||
|
Non-GAAP Performance Measures Reconciliation
|
||
|
Selected Financial Information
|
||
|
2014
|
2013
|
For the Nine Months
|
||||||||||||||||||||||||||
|
(in thousands, except per share
|
Third
|
Second
|
First
|
Fourth
|
Third
|
Ended September 30,
|
||||||||||||||||||||||
|
data; taxable equivalent)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
2014
|
2013
|
|||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||
|
Interest revenue reconciliation
|
||||||||||||||||||||||||||||
|
Interest revenue - taxable equivalent
|
$ | 63,338 | $ | 61,783 | $ | 60,495 | $ | 61,695 | $ | 61,426 | $ | 185,616 | $ | 185,628 | ||||||||||||||
|
Taxable equivalent adjustment
|
(405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (1,139 | ) | (1,103 | ) | ||||||||||||||
|
Interest revenue (GAAP)
|
$ | 62,933 | $ | 61,406 | $ | 60,138 | $ | 61,315 | $ | 61,056 | $ | 184,477 | $ | 184,525 | ||||||||||||||
|
Net interest revenue reconciliation
|
||||||||||||||||||||||||||||
|
Net interest revenue - taxable equivalent
|
$ | 56,967 | $ | 54,950 | $ | 54,169 | $ | 55,879 | $ | 54,257 | $ | 166,086 | $ | 163,762 | ||||||||||||||
|
Taxable equivalent adjustment
|
(405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (1,139 | ) | (1,103 | ) | ||||||||||||||
|
Net interest revenue (GAAP)
|
$ | 56,562 | $ | 54,573 | $ | 53,812 | $ | 55,499 | $ | 53,887 | $ | 164,947 | $ | 162,659 | ||||||||||||||
|
Total revenue reconciliation
|
||||||||||||||||||||||||||||
|
Total operating revenue
|
$ | 69,379 | $ | 66,893 | $ | 63,845 | $ | 66,398 | $ | 65,482 | $ | 200,117 | $ | 144,341 | ||||||||||||||
|
Taxable equivalent adjustment
|
(405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (1,139 | ) | (1,103 | ) | ||||||||||||||
|
Total revenue (GAAP)
|
$ | 68,974 | $ | 66,516 | $ | 63,488 | $ | 66,018 | $ | 65,112 | $ | 198,978 | $ | 143,238 | ||||||||||||||
|
Income before taxes reconciliation
|
||||||||||||||||||||||||||||
|
Income before taxes
|
$ | 28,015 | $ | 26,361 | $ | 24,795 | $ | 24,784 | $ | 25,385 | $ | 79,171 | $ | 11,651 | ||||||||||||||
|
Taxable equivalent adjustment
|
(405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (1,139 | ) | (1,103 | ) | ||||||||||||||
|
Income before taxes (GAAP)
|
$ | 27,610 | $ | 25,984 | $ | 24,438 | $ | 24,404 | $ | 25,015 | $ | 78,032 | $ | 10,548 | ||||||||||||||
|
Income tax expense (benefit) reconciliation
|
||||||||||||||||||||||||||||
|
Income tax expense (benefit)
|
$ | 10,399 | $ | 10,004 | $ | 9,395 | $ | 8,873 | $ | 9,885 | $ | 29,798 | $ | (245,578 | ) | |||||||||||||
|
Taxable equivalent adjustment
|
(405 | ) | (377 | ) | (357 | ) | (380 | ) | (370 | ) | (1,139 | ) | (1,103 | ) | ||||||||||||||
|
Income tax expense (benefit) (GAAP)
|
$ | 9,994 | $ | 9,627 | $ | 9,038 | $ | 8,493 | $ | 9,515 | $ | 28,659 | $ | (246,681 | ) | |||||||||||||
|
Book value per common share reconciliation
|
||||||||||||||||||||||||||||
|
Tangible book value per common share
|
$ | 12.10 | $ | 11.91 | $ | 11.63 | $ | 11.26 | $ | 10.95 | $ | 12.10 | $ | 10.95 | ||||||||||||||
|
Effect of goodwill and other intangibles
|
.05 | .03 | .03 | .04 | .04 | .05 | .04 | |||||||||||||||||||||
|
Book value per common share (GAAP)
|
$ | 12.15 | $ | 11.94 | $ | 11.66 | $ | 11.30 | $ | 10.99 | $ | 12.15 | $ | 10.99 | ||||||||||||||
|
Average equity to assets reconciliation
|
||||||||||||||||||||||||||||
|
Tangible common equity to assets
|
9.83 | % | 9.58 | % | 9.22 | % | 8.99 | % | 9.02 | % | 9.55 | % | 7.04 | % | ||||||||||||||
|
Effect of preferred equity
|
- | - | .28 | 2.60 | 2.74 | .09 | 2.81 | |||||||||||||||||||||
|
Tangible equity to assets
|
9.83 | 9.58 | 9.50 | 11.59 | 11.76 | 9.64 | 9.85 | |||||||||||||||||||||
|
Effect of goodwill and other intangibles
|
.02 | .03 | .02 | .03 | .04 | .02 | .06 | |||||||||||||||||||||
|
Equity to assets (GAAP)
|
9.85 | % | 9.61 | % | 9.52 | % | 11.62 | % | 11.80 | % | 9.66 | % | 9.91 | % | ||||||||||||||
|
Tangible common equity to risk-weighted assets reconciliation
|
||||||||||||||||||||||||||||
|
Tangible common equity to risk-weighted assets
|
14.10 | % | 13.92 | % | 13.63 | % | 13.18 | % | 13.34 | % | 14.10 | % | 13.34 | % | ||||||||||||||
|
Effect of other comprehensive income
|
.34 | .53 | .36 | .39 | .49 | .34 | .49 | |||||||||||||||||||||
|
Effect of deferred tax limitation
|
(3.39 | ) | (3.74 | ) | (3.92 | ) | (4.26 | ) | (4.72 | ) | (3.39 | ) | (4.72 | ) | ||||||||||||||
|
Effect of trust preferred
|
1.02 | 1.04 | 1.03 | 1.04 | 1.09 | 1.02 | 1.09 | |||||||||||||||||||||
|
Effect of preferred equity
|
- | - | - | 2.39 | 4.01 | - | 4.01 | |||||||||||||||||||||
|
Tier I capital ratio (Regulatory)
|
12.07 | % | 11.75 | % | 11.10 | % | 12.74 | % | 14.21 | % | 12.07 | % | 14.21 | % | ||||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||
|
Financial Highlights
|
||||||
|
Loan Portfolio Composition at Period-End (1)
|
||||||
|
2014
|
2013
|
Linked
Quarter Change |
Year over
Year Change |
|||||||||||||||||||||||||
|
Third
|
Second
|
First
|
Fourth
|
Third
|
||||||||||||||||||||||||
|
(in millions)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||||||||||||
|
LOANS BY CATEGORY
|
||||||||||||||||||||||||||||
|
Owner occupied commercial RE
|
$ | 1,153 | $ | 1,163 | $ | 1,142 | $ | 1,134 | $ | 1,129 | $ | (10 | ) | $ | 24 | |||||||||||||
|
Income producing commercial RE
|
605 | 598 | 624 | 623 | 614 | 7 | (9 | ) | ||||||||||||||||||||
|
Commercial & industrial
|
650 | 554 | 495 | 472 | 457 | 96 | 193 | |||||||||||||||||||||
|
Commercial construction
|
181 | 160 | 148 | 149 | 137 | 21 | 44 | |||||||||||||||||||||
|
Total commercial
|
2,589 | 2,475 | 2,409 | 2,378 | 2,337 | 114 | 252 | |||||||||||||||||||||
|
Residential mortgage
|
866 | 861 | 866 | 875 | 888 | 5 | (22 | ) | ||||||||||||||||||||
|
Home equity lines of credit
|
459 | 451 | 447 | 441 | 421 | 8 | 38 | |||||||||||||||||||||
|
Residential construction
|
307 | 302 | 318 | 328 | 318 | 5 | (11 | ) | ||||||||||||||||||||
|
Consumer installment
|
348 | 321 | 316 | 307 | 303 | 27 | 45 | |||||||||||||||||||||
|
Total loans
|
$ | 4,569 | $ | 4,410 | $ | 4,356 | $ | 4,329 | $ | 4,267 | 159 | 302 | ||||||||||||||||
|
LOANS BY MARKET
|
||||||||||||||||||||||||||||
|
North Georgia
|
$ | 1,168 | $ | 1,175 | $ | 1,205 | $ | 1,240 | $ | 1,262 | (7 | ) | (94 | ) | ||||||||||||||
|
Atlanta MSA
|
1,289 | 1,305 | 1,290 | 1,275 | 1,246 | (16 | ) | 43 | ||||||||||||||||||||
|
North Carolina
|
553 | 555 | 563 | 572 | 575 | (2 | ) | (22 | ) | |||||||||||||||||||
|
Coastal Georgia
|
444 | 426 | 425 | 423 | 421 | 18 | 23 | |||||||||||||||||||||
|
Gainesville MSA
|
254 | 257 | 262 | 255 | 253 | (3 | ) | 1 | ||||||||||||||||||||
|
East Tennessee
|
281 | 270 | 272 | 280 | 277 | 11 | 4 | |||||||||||||||||||||
|
South Carolina / Corporate
|
337 | 206 | 131 | 88 | 47 | 131 | 290 | |||||||||||||||||||||
|
Other (2)
|
243 | 216 | 208 | 196 | 186 | 27 | 57 | |||||||||||||||||||||
|
Total loans
|
$ | 4,569 | $ | 4,410 | $ | 4,356 | $ | 4,329 | $ | 4,267 | 159 | 302 | ||||||||||||||||
|
RESIDENTIAL CONSTRUCTION
|
||||||||||||||||||||||||||||
|
Dirt loans
|
||||||||||||||||||||||||||||
|
Acquisition & development
|
$ | 36 | $ | 34 | $ | 37 | $ | 39 | $ | 40 | 2 | (4 | ) | |||||||||||||||
|
Land loans
|
35 | 36 | 37 | 38 | 35 | (1 | ) | - | ||||||||||||||||||||
|
Lot loans
|
146 | 151 | 159 | 166 | 167 | (5 | ) | (21 | ) | |||||||||||||||||||
|
Total
|
217 | 221 | 233 | 243 | 242 | (4 | ) | (25 | ) | |||||||||||||||||||
|
House loans
|
||||||||||||||||||||||||||||
|
Spec
|
18 | 19 | 19 | 23 | 30 | (1 | ) | (12 | ) | |||||||||||||||||||
|
Sold
|
72 | 62 | 66 | 62 | 46 | 10 | 26 | |||||||||||||||||||||
|
Total
|
90 | 81 | 85 | 85 | 76 | 9 | 14 | |||||||||||||||||||||
|
Total residential construction
|
$ | 307 | $ | 302 | $ | 318 | $ | 328 | $ | 318 | 5 | (11 | ) | |||||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
|
Financial Highlights
|
|
Credit Quality (1)
|
|
Third Quarter 2014
|
Second Quarter 2014
|
First Quarter 2014
|
||||||||||||||||||||||||||||||||||
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
Non-performing
|
Foreclosed
|
Total
|
||||||||||||||||||||||||||||
|
(in thousands)
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
Loans
|
Properties
|
NPAs
|
|||||||||||||||||||||||||||
|
NONPERFORMING ASSETS BY CATEGORY
|
||||||||||||||||||||||||||||||||||||
|
Owner occupied CRE
|
$ | 2,156 | $ | 1,024 | $ | 3,180 | $ | 2,975 | $ | 653 | $ | 3,628 | $ | 3,868 | $ | 1,167 | $ | 5,035 | ||||||||||||||||||
|
Income producing CRE
|
1,742 | 42 | 1,784 | 1,032 | 242 | 1,274 | 1,278 | 1,645 | 2,923 | |||||||||||||||||||||||||||
|
Commercial & industrial
|
1,593 | - | 1,593 | 1,102 | - | 1,102 | 822 | - | 822 | |||||||||||||||||||||||||||
|
Commercial construction
|
148 | - | 148 | 95 | - | 95 | 479 | - | 479 | |||||||||||||||||||||||||||
|
Total commercial
|
5,639 | 1,066 | 6,705 | 5,204 | 895 | 6,099 | 6,447 | 2,812 | 9,259 | |||||||||||||||||||||||||||
|
Residential mortgage
|
8,350 | 1,769 | 10,119 | 10,201 | 1,426 | 11,627 | 13,307 | 2,146 | 15,453 | |||||||||||||||||||||||||||
|
Home equity lines of credit
|
720 | 90 | 810 | 510 | 128 | 638 | 1,106 | 362 | 1,468 | |||||||||||||||||||||||||||
|
Residential construction
|
3,543 | 221 | 3,764 | 4,248 | 520 | 4,768 | 3,805 | 274 | 4,079 | |||||||||||||||||||||||||||
|
Consumer installment
|
493 | - | 493 | 561 | - | 561 | 585 | - | 585 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 18,745 | $ | 3,146 | $ | 21,891 | $ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | ||||||||||||||||||
|
Balance as a % of
|
||||||||||||||||||||||||||||||||||||
|
Unpaid Principal
|
68.6 | % | 54.5 | % | 66.1 | % | 66.5 | % | 50.4 | % | 63.9 | % | 65.8 | % | 53.9 | % | 63.2 | % | ||||||||||||||||||
|
NONPERFORMING ASSETS BY MARKET
|
||||||||||||||||||||||||||||||||||||
|
North Georgia
|
$ | 7,392 | $ | 1,717 | $ | 9,109 | $ | 8,216 | $ | 1,392 | $ | 9,608 | $ | 12,166 | $ | 2,058 | $ | 14,224 | ||||||||||||||||||
|
Atlanta MSA
|
1,724 | 364 | 2,088 | 3,883 | 510 | 4,393 | 2,916 | 904 | 3,820 | |||||||||||||||||||||||||||
|
North Carolina
|
4,919 | 398 | 5,317 | 5,314 | 615 | 5,929 | 6,501 | 866 | 7,367 | |||||||||||||||||||||||||||
|
Coastal Georgia
|
781 | 160 | 941 | 782 | 80 | 862 | 800 | 1,607 | 2,407 | |||||||||||||||||||||||||||
|
Gainesville MSA
|
1,403 | 85 | 1,488 | 921 | 49 | 970 | 1,145 | - | 1,145 | |||||||||||||||||||||||||||
|
East Tennessee
|
1,227 | 245 | 1,472 | 1,218 | 323 | 1,541 | 1,428 | 159 | 1,587 | |||||||||||||||||||||||||||
|
South Carolina / Corporate
|
945 | 177 | 1,122 | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Other (3)
|
354 | - | 354 | 390 | - | 390 | 294 | - | 294 | |||||||||||||||||||||||||||
|
Total NPAs
|
$ | 18,745 | $ | 3,146 | $ | 21,891 | $ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | ||||||||||||||||||
|
NONPERFORMING ASSETS ACTIVITY
|
||||||||||||||||||||||||||||||||||||
|
Beginning Balance
|
$ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | $ | 26,819 | $ | 4,221 | $ | 31,040 | ||||||||||||||||||
|
Loans placed on non-accrual
|
7,665 | - | 7,665 | 9,529 | - | 9,529 | 9,303 | - | 9,303 | |||||||||||||||||||||||||||
|
Payments received
|
(3,129 | ) | - | (3,129 | ) | (4,027 | ) | - | (4,027 | ) | (1,666 | ) | - | (1,666 | ) | |||||||||||||||||||||
|
Loan charge-offs
|
(4,353 | ) | - | (4,353 | ) | (8,341 | ) | - | (8,341 | ) | (4,839 | ) | - | (4,839 | ) | |||||||||||||||||||||
|
Foreclosures
|
(2,162 | ) | 2,162 | - | (1,687 | ) | 1,687 | - | (4,367 | ) | 4,367 | - | ||||||||||||||||||||||||
|
Capitalized costs
|
- | 209 | 209 | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Property sales
|
- | (2,350 | ) | (2,350 | ) | - | (4,430 | ) | (4,430 | ) | - | (3,238 | ) | (3,238 | ) | |||||||||||||||||||||
|
Write downs
|
- | (108 | ) | (108 | ) | - | (305 | ) | (305 | ) | - | (277 | ) | (277 | ) | |||||||||||||||||||||
|
Net gains (losses) on sales
|
- | 264 | 264 | - | 423 | 423 | - | 521 | 521 | |||||||||||||||||||||||||||
|
Ending Balance
|
$ | 18,745 | $ | 3,146 | $ | 21,891 | $ | 20,724 | $ | 2,969 | $ | 23,693 | $ | 25,250 | $ | 5,594 | $ | 30,844 | ||||||||||||||||||
|
Third Quarter 2014
|
Second Quarter 2014
|
First Quarter 2014
|
||||||||||||||||||||||
|
Net Charge-
|
Net Charge-
|
Net Charge-
|
||||||||||||||||||||||
|
Offs to
|
Offs to
|
Offs to
|
||||||||||||||||||||||
|
Net
|
Average
|
Net
|
Average
|
Net
|
Average
|
|||||||||||||||||||
|
(in thousands)
|
Charge-Offs
|
Loans (2)
|
Charge-Offs
|
Loans (2)
|
Charge-Offs
|
Loans (2)
|
||||||||||||||||||
|
NET CHARGE-OFFS BY CATEGORY
|
||||||||||||||||||||||||
|
Owner occupied CRE
|
$ | 746 | .26 | % | $ | (1,836 | ) | (.64 | )% | $ | 278 | .10 | % | |||||||||||
|
Income producing CRE
|
104 | .07 | 435 | .29 | 205 | .13 | ||||||||||||||||||
|
Commercial & industrial
|
(341 | ) | (.23 | ) | 662 | .52 | 421 | .35 | ||||||||||||||||
|
Commercial construction
|
103 | .24 | 131 | .34 | - | - | ||||||||||||||||||
|
Total commercial
|
612 | .10 | (608 | ) | (.10 | ) | 904 | .15 | ||||||||||||||||
|
Residential mortgage
|
1,116 | .52 | 2,509 | 1.17 | 1,515 | .71 | ||||||||||||||||||
|
Home equity lines of credit
|
356 | .31 | 466 | .42 | 993 | .90 | ||||||||||||||||||
|
Residential construction
|
712 | .94 | 1,671 | 2.13 | 212 | .27 | ||||||||||||||||||
|
Consumer installment
|
359 | .43 | 137 | .18 | 415 | .54 | ||||||||||||||||||
|
Total
|
$ | 3,155 | .28 | $ | 4,175 | .38 | $ | 4,039 | .38 | |||||||||||||||
|
NET CHARGE-OFFS BY MARKET
|
||||||||||||||||||||||||
|
North Georgia
|
$ | 1,861 | .63 | % | $ | (741 | ) | (.25 | )% | $ | 1,272 | .42 | % | |||||||||||
|
Atlanta MSA
|
(250 | ) | (.08 | ) | 1,481 | .46 | 1,232 | .39 | ||||||||||||||||
|
North Carolina
|
656 | .47 | 2,161 | 1.55 | 577 | .41 | ||||||||||||||||||
|
Coastal Georgia
|
228 | .21 | 116 | .11 | 512 | .49 | ||||||||||||||||||
|
Gainesville MSA
|
259 | .40 | 797 | 1.23 | 141 | .22 | ||||||||||||||||||
|
East Tennessee
|
230 | .33 | 288 | .42 | 239 | .35 | ||||||||||||||||||
|
South Carolina / Corporate
|
5 | .01 | - | - | - | - | ||||||||||||||||||
|
Other (3)
|
166 | .31 | 73 | .14 | 66 | .14 | ||||||||||||||||||
|
Total
|
$ | 3,155 | .28 | $ | 4,175 | .38 | $ | 4,039 | .38 | |||||||||||||||
|
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
|
|
(2) Annualized.
|
|
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
|
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||
|
Consolidated Statement of Income (Unaudited)
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(in thousands, except per share data)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
Interest revenue:
|
||||||||||||||||
|
Loans, including fees
|
$ | 49,653 | $ | 50,162 | $ | 145,602 | $ | 151,827 | ||||||||
|
Investment securities, including tax exempt of $177, $202, $558 and $624
|
12,346 | 9,887 | 36,118 | 29,905 | ||||||||||||
|
Deposits in banks and short-term investments
|
934 | 1,007 | 2,757 | 2,793 | ||||||||||||
|
Total interest revenue
|
62,933 | 61,056 | 184,477 | 184,525 | ||||||||||||
|
Interest expense:
|
||||||||||||||||
|
Deposits:
|
||||||||||||||||
|
NOW
|
365 | 413 | 1,216 | 1,286 | ||||||||||||
|
Money market
|
872 | 545 | 2,192 | 1,641 | ||||||||||||
|
Savings
|
20 | 37 | 61 | 109 | ||||||||||||
|
Time
|
1,721 | 2,630 | 5,510 | 8,871 | ||||||||||||
|
Total deposit interest expense
|
2,978 | 3,625 | 8,979 | 11,907 | ||||||||||||
|
Short-term borrowings
|
316 | 525 | 2,064 | 1,563 | ||||||||||||
|
Federal Home Loan Bank advances
|
435 | 16 | 573 | 65 | ||||||||||||
|
Long-term debt
|
2,642 | 3,003 | 7,914 | 8,331 | ||||||||||||
|
Total interest expense
|
6,371 | 7,169 | 19,530 | 21,866 | ||||||||||||
|
Net interest revenue
|
56,562 | 53,887 | 164,947 | 162,659 | ||||||||||||
|
Provision for credit losses
|
2,000 | 3,000 | 6,700 | 62,500 | ||||||||||||
|
Net interest revenue after provision for credit losses
|
54,562 | 50,887 | 158,247 | 100,159 | ||||||||||||
|
Fee revenue:
|
||||||||||||||||
|
Service charges and fees
|
8,202 | 8,456 | 24,627 | 23,831 | ||||||||||||
|
Mortgage loan and other related fees
|
2,178 | 2,554 | 5,409 | 8,212 | ||||||||||||
|
Brokerage fees
|
1,209 | 1,274 | 3,631 | 3,104 | ||||||||||||
|
Securities gains, net
|
11 | - | 4,663 | 116 | ||||||||||||
|
Loss from prepayment of debt
|
- | - | (4,446 | ) | - | |||||||||||
|
Other
|
2,812 | 1,941 | 6,847 | 7,816 | ||||||||||||
|
Total fee revenue
|
14,412 | 14,225 | 40,731 | 43,079 | ||||||||||||
|
Total revenue
|
68,974 | 65,112 | 198,978 | 143,238 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
25,666 | 23,090 | 74,349 | 71,416 | ||||||||||||
|
Communications and equipment
|
3,094 | 3,305 | 9,370 | 9,819 | ||||||||||||
|
Occupancy
|
3,425 | 3,379 | 10,065 | 10,195 | ||||||||||||
|
Advertising and public relations
|
894 | 962 | 2,659 | 2,937 | ||||||||||||
|
Postage, printing and supplies
|
876 | 644 | 2,456 | 2,401 | ||||||||||||
|
Professional fees
|
2,274 | 2,650 | 5,873 | 7,515 | ||||||||||||
|
Foreclosed property
|
285 | 194 | 503 | 7,678 | ||||||||||||
|
FDIC assessments and other regulatory charges
|
1,131 | 2,405 | 3,909 | 7,415 | ||||||||||||
|
Amortization of intangibles
|
313 | 427 | 1,061 | 1,623 | ||||||||||||
|
Other
|
3,406 | 3,041 | 10,701 | 11,691 | ||||||||||||
|
Total operating expenses
|
41,364 | 40,097 | 120,946 | 132,690 | ||||||||||||
|
Net income before income taxes
|
27,610 | 25,015 | 78,032 | 10,548 | ||||||||||||
|
Income tax expense (benefit)
|
9,994 | 9,515 | 28,659 | (246,681 | ) | |||||||||||
|
Net income
|
17,616 | 15,500 | 49,373 | 257,229 | ||||||||||||
|
Preferred stock dividends and discount accretion
|
- | 3,059 | 439 | 9,166 | ||||||||||||
|
Net income available to common shareholders
|
$ | 17,616 | $ | 12,441 | $ | 48,934 | $ | 248,063 | ||||||||
|
Earnings per common share:
|
||||||||||||||||
|
Basic
|
$ | .29 | $ | .21 | $ | .81 | $ | 4.24 | ||||||||
|
Diluted
|
.29 | .21 | .81 | 4.24 | ||||||||||||
|
Weighted average common shares outstanding:
|
||||||||||||||||
|
Basic
|
60,776 | 59,100 | 60,511 | 58,443 | ||||||||||||
|
Diluted
|
60,779 | 59,202 | 60,513 | 58,444 | ||||||||||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||
|
Consolidated Balance Sheet (Unaudited)
|
||||||||||||
|
September 30,
|
December 31,
|
September 30,
|
||||||||||
|
(in thousands, except share and per share data)
|
2014
|
2013
|
2013
|
|||||||||
|
ASSETS
|
||||||||||||
|
Cash and due from banks
|
$ | 75,268 | $ | 71,230 | $ | 70,986 | ||||||
|
Interest-bearing deposits in banks
|
117,399 | 119,669 | 131,147 | |||||||||
|
Short-term investments
|
23,397 | 37,999 | 62,000 | |||||||||
|
Cash and cash equivalents
|
216,064 | 228,898 | 264,133 | |||||||||
|
Securities available for sale
|
1,789,667 | 1,832,217 | 1,963,424 | |||||||||
|
Securities held to maturity (fair value $440,311, $485,585 and $214,651)
|
432,418 | 479,742 | 205,613 | |||||||||
|
Mortgage loans held for sale
|
20,004 | 10,319 | 11,987 | |||||||||
|
Loans, net of unearned income
|
4,568,886 | 4,329,266 | 4,267,067 | |||||||||
|
Less allowance for loan losses
|
(71,928 | ) | (76,762 | ) | (80,372 | ) | ||||||
|
Loans, net
|
4,496,958 | 4,252,504 | 4,186,695 | |||||||||
|
Assets covered by loss sharing agreements with the FDIC
|
3,253 | 22,882 | 31,207 | |||||||||
|
Premises and equipment, net
|
160,454 | 163,589 | 165,993 | |||||||||
|
Bank owned life insurance
|
81,101 | 80,670 | 80,537 | |||||||||
|
Accrued interest receivable
|
19,908 | 19,598 | 18,199 | |||||||||
|
Goodwill and other intangible assets
|
3,910 | 3,480 | 3,888 | |||||||||
|
Foreclosed property
|
3,146 | 4,221 | 4,467 | |||||||||
|
Net deferred tax asset
|
224,734 | 258,518 | 269,784 | |||||||||
|
Derivative financial instruments
|
22,221 | 23,833 | 8,092 | |||||||||
|
Other assets
|
52,051 | 44,948 | 29,274 | |||||||||
|
Total assets
|
$ | 7,525,889 | $ | 7,425,419 | $ | 7,243,293 | ||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||
|
Liabilities:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Demand
|
$ | 1,561,020 | $ | 1,388,512 | $ | 1,418,782 | ||||||
|
NOW
|
1,399,449 | 1,427,939 | 1,279,134 | |||||||||
|
Money market
|
1,281,526 | 1,227,575 | 1,197,495 | |||||||||
|
Savings
|
287,797 | 251,125 | 249,044 | |||||||||
|
Time:
|
||||||||||||
|
Less than $100,000
|
774,201 | 892,961 | 925,089 | |||||||||
|
Greater than $100,000
|
531,428 | 588,689 | 624,019 | |||||||||
|
Brokered
|
405,308 | 424,704 | 419,344 | |||||||||
|
Total deposits
|
6,240,729 | 6,201,505 | 6,112,907 | |||||||||
|
Short-term borrowings
|
6,001 | 53,241 | 53,769 | |||||||||
|
Federal Home Loan Bank advances
|
330,125 | 120,125 | 125 | |||||||||
|
Long-term debt
|
129,865 | 129,865 | 129,865 | |||||||||
|
Derivative financial instruments
|
36,171 | 46,232 | 37,269 | |||||||||
|
Unsettled securities purchases
|
- | 29,562 | 11,610 | |||||||||
|
Accrued expenses and other liabilities
|
46,573 | 49,174 | 45,531 | |||||||||
|
Total liabilities
|
6,789,464 | 6,629,704 | 6,391,076 | |||||||||
|
Shareholders’ equity:
|
||||||||||||
|
Preferred stock, $1 par value; 10,000,000 shares authorized;
|
||||||||||||
|
Series A; $10 stated value; 0, 0 and 21,700 shares issued and outstanding
|
- | - | 217 | |||||||||
|
Series B; $1,000 stated value; 0, 105,000 and 180,000 shares issued and outstanding
|
- | 105,000 | 179,714 | |||||||||
|
Series D; $1,000 stated value; 0, 16,613 and 16,613 shares issued and outstanding
|
- | 16,613 | 16,613 | |||||||||
|
Common stock, $1 par value; 100,000,000 shares authorized;50,167,191, 46,243,345 and 45,222,839 shares issued and outstanding
|
50,167 | 46,243 | 45,223 | |||||||||
|
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;10,080,787, 13,188,206 and 14,189,006 shares issued and outstanding
|
10,081 | 13,188 | 14,189 | |||||||||
|
Common stock issuable; 354,961, 241,832 and 242,262 shares
|
5,116 | 3,930 | 3,979 | |||||||||
|
Capital surplus
|
1,091,555 | 1,078,676 | 1,077,536 | |||||||||
|
Accumulated deficit
|
(402,773 | ) | (448,091 | ) | (461,090 | ) | ||||||
|
Accumulated other comprehensive loss
|
(17,721 | ) | (19,844 | ) | (24,164 | ) | ||||||
|
Total shareholders’ equity
|
736,425 | 795,715 | 852,217 | |||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,525,889 | $ | 7,425,419 | $ | 7,243,293 | ||||||
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||||||
|
Average Consolidated Balance Sheets and Net Interest Analysis
|
||||||||||||||||||||||||
|
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
|
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)
|
$ | 4,445,947 | $ | 49,853 | 4.45 | % | $ | 4,249,892 | $ | 50,265 | 4.69 | % | ||||||||||||
|
Taxable securities (3)
|
2,212,116 | 12,169 | 2.20 | 2,157,448 | 9,685 | 1.80 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
18,794 | 290 | 6.17 | 20,913 | 331 | 6.32 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
143,169 | 1,026 | 2.87 | 186,544 | 1,145 | 2.46 | ||||||||||||||||||
|
Total interest-earning assets
|
6,820,026 | 63,338 | 3.69 | 6,614,797 | 61,426 | 3.69 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(74,146 | ) | (83,408 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
71,224 | 63,890 | ||||||||||||||||||||||
|
Premises and equipment
|
161,315 | 166,906 | ||||||||||||||||||||||
|
Other assets (3)
|
395,184 | 407,912 | ||||||||||||||||||||||
|
Total assets
|
$ | 7,373,603 | $ | 7,170,097 | ||||||||||||||||||||
|
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,331,806 | 365 | .11 | $ | 1,222,334 | 413 | .13 | ||||||||||||||||
|
Money market
|
1,387,042 | 872 | .25 | 1,328,661 | 545 | .16 | ||||||||||||||||||
|
Savings
|
282,746 | 20 | .03 | 248,937 | 37 | .06 | ||||||||||||||||||
|
Time less than $100,000
|
791,289 | 876 | .44 | 952,320 | 1,369 | .57 | ||||||||||||||||||
|
Time greater than $100,000
|
542,216 | 827 | .61 | 644,264 | 1,229 | .76 | ||||||||||||||||||
|
Brokered time deposits
|
278,330 | 18 | .03 | 233,842 | 32 | .05 | ||||||||||||||||||
|
Total interest-bearing deposits
|
4,613,429 | 2,978 | .26 | 4,630,358 | 3,625 | .31 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
53,713 | 316 | 2.33 | 67,292 | 525 | 3.10 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
227,190 | 435 | .76 | 32,082 | 16 | .20 | ||||||||||||||||||
|
Long-term debt
|
129,865 | 2,642 | 8.07 | 144,601 | 3,003 | 8.24 | ||||||||||||||||||
|
Total borrowed funds
|
410,768 | 3,393 | 3.28 | 243,975 | 3,544 | 5.76 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
5,024,197 | 6,371 | .50 | 4,874,333 | 7,169 | .58 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,530,011 | 1,356,792 | ||||||||||||||||||||||
|
Other liabilities
|
92,986 | 93,247 | ||||||||||||||||||||||
|
Total liabilities
|
6,647,194 | 6,324,372 | ||||||||||||||||||||||
|
Shareholders’ equity
|
726,409 | 845,725 | ||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,373,603 | $ | 7,170,097 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 56,967 | $ | 54,257 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.19 | % | 3.11 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.32 | % | 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 $7.42 million in 2014 and pretax unrealized losses of $10.6 million in 2013 are included in other assets for purposes of this presentation.
|
|
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
|
|
UNITED COMMUNITY BANKS, INC.
|
||||||||||||||||||||||||
|
Average Consolidated Balance Sheets and Net Interest Analysis
|
||||||||||||||||||||||||
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
|
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)
|
$ | 4,392,895 | $ | 146,156 | 4.45 | % | $ | 4,233,531 | $ | 152,073 | 4.80 | % | ||||||||||||
|
Taxable securities (3)
|
2,272,639 | 35,560 | 2.09 | 2,138,725 | 29,281 | 1.83 | ||||||||||||||||||
|
Tax-exempt securities (1)(3)
|
19,515 | 914 | 6.24 | 21,411 | 1,022 | 6.36 | ||||||||||||||||||
|
Federal funds sold and other interest-earning assets
|
150,782 | 2,986 | 2.64 | 196,445 | 3,252 | 2.21 | ||||||||||||||||||
|
Total interest-earning assets
|
6,835,831 | 185,616 | 3.63 | 6,590,112 | 185,628 | 3.76 | ||||||||||||||||||
|
Non-interest-earning assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(76,148 | ) | (100,154 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
65,744 | 63,879 | ||||||||||||||||||||||
|
Premises and equipment
|
161,843 | 168,144 | ||||||||||||||||||||||
|
Other assets (3)
|
404,654 | 252,275 | ||||||||||||||||||||||
|
Total assets
|
$ | 7,391,924 | $ | 6,974,256 | ||||||||||||||||||||
|
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
NOW
|
$ | 1,367,713 | 1,216 | .12 | $ | 1,256,684 | 1,286 | .14 | ||||||||||||||||
|
Money market
|
1,375,064 | 2,192 | .21 | 1,297,792 | 1,641 | .17 | ||||||||||||||||||
|
Savings
|
272,696 | 61 | .03 | 242,807 | 109 | .06 | ||||||||||||||||||
|
Time less than $100,000
|
828,694 | 2,822 | .46 | 997,193 | 4,686 | .63 | ||||||||||||||||||
|
Time greater than $100,000
|
561,167 | 2,610 | .62 | 670,821 | 4,086 | .81 | ||||||||||||||||||
|
Brokered time deposits
|
300,374 | 78 | .03 | 201,599 | 99 | .07 | ||||||||||||||||||
|
Total interest-bearing deposits
|
4,705,708 | 8,979 | .26 | 4,666,896 | 11,907 | .34 | ||||||||||||||||||
|
Federal funds purchased and other borrowings
|
91,320 | 2,064 | 3.02 | 70,512 | 1,563 | 2.96 | ||||||||||||||||||
|
Federal Home Loan Bank advances
|
169,392 | 573 | .45 | 41,352 | 65 | .21 | ||||||||||||||||||
|
Long-term debt
|
129,865 | 7,914 | 8.15 | 131,491 | 8,331 | 8.47 | ||||||||||||||||||
|
Total borrowed funds
|
390,577 | 10,551 | 3.61 | 243,355 | 9,959 | 5.47 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
5,096,285 | 19,530 | .51 | 4,910,251 | 21,866 | .60 | ||||||||||||||||||
|
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Non-interest-bearing deposits
|
1,469,967 | 1,305,133 | ||||||||||||||||||||||
|
Other liabilities
|
111,522 | 68,312 | ||||||||||||||||||||||
|
Total liabilities
|
6,677,774 | 6,283,696 | ||||||||||||||||||||||
|
Shareholders’ equity
|
714,150 | 690,560 | ||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 7,391,924 | $ | 6,974,256 | ||||||||||||||||||||
|
Net interest revenue
|
$ | 166,086 | $ | 163,762 | ||||||||||||||||||||
|
Net interest-rate spread
|
3.12 | % | 3.16 | % | ||||||||||||||||||||
|
Net interest margin (4)
|
3.25 | % | 3.32 | % | ||||||||||||||||||||
|
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
|
|
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
|
|
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $1.59 million in 2014 and pretax unrealized gains of $7.96 million in 2013 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.
|
Exhibit 99.2
Third Quarter 2014 Investor Presentation
2 Cautionary Statement This investor presentation may contain 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 Community Banks, Inc . ’s filings with the Securities and Exchange Commission, including its 2013 Annual Report on Form 10 - K and its most recent quarterly report on Form 10 - Q under the sections entitled “Forward - Looking Statements” . Forward - looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward - looking statements . Non - GAAP Measures This presentation also contains financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”) . Such non - GAAP financial measures include the following : core fee revenue, core operating expense, core earnings, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk - weighted assets . The most comparable GAAP measures to these measures are : fee revenue, operating expense, net income (loss), and equity to assets . Management uses these non - GAAP financial measures because we believe they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance . Management believes these non - GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as for comparison to financial results for prior periods . These non - GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies . For a reconciliation of the differences between our non - GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non - GAAP Reconcilement Tables’ at the end of the Appendix to this presentation .
3 Highlights Third Quarter 2014 IMPROVING QUARTERLY RESULTS 3Q14 2Q14 3Q13 Net Income $17.6 $16.4 $15.5 EPS $.29 $.27 $.21 ROA .95% .88% .86% ROCE 9.41% 8.99% 7.38% Net Interest Revenue of $57.0 Million vs. $55.0 M illion in 2Q13 and $54.3 Million in 3Q13 Loan growth of $159 million in 3Q14, up $302 million from 3Q13 Focus on specialized lending and commercial Margin of 3.32% vs. 3.21% in 2Q14 and 3.26% in 3Q13 Balance sheet restructured late 2Q14 Loan yield of 4.45%, up 1 bps from 2Q14; and, investment securities yield of 2.23%, up 12 bps from 2Q14 Core deposit growth of $90 million in 3Q14 Core Fee Revenue of $14.4 Million Up $.5 million compared to 2Q14 Gain on sales of SBA loans of $.95 million vs. $.74 million in 2Q14 Mortgage revenue of $2.2 million, up $.4 million from 2Q14 Operating Efficiency Strengthens Efficiency ratio of 57.96%; vs. 58.65% last quarter Continued focus on reducing costs and growing revenue $ in millions
4 Highlights Third Quarter 2014 Solid Capital Ratios – Increased Dividend to Shareholders Approved quarterly dividend of 5 cents (up 2 cents) Tier I Common to Risk Weighted Assets of 11.0%; Tangible Common to RWAs of 14.1% Tier 1 Risk Based Capital of 12.1% and Tier I Leverage of 8.7% Solid Improvement in Credit Quality Provision of $2.0 million vs. $3.0 million 3Q13 Net charge - offs decline to .28% of total loans vs. .42% in 3Q13 NPAs declined to .29% of total assets vs. .32% in 2Q14 and .42% in 3Q13 Allowance 1.57% of total loans vs. 1.66% at 2Q14 and 1.88% at 3Q13 Classified ratio of 24%, up from 23% at 2Q14 Balance Sheet Loan growth this quarter of $159 million, or 14% annualized C&I up $96 million CRE up $27 million Indirect Auto up $27 million Continued Strong Core Transaction Deposit Growth Up $90 million in the third quarter or 10% annualized Up $299 million from year ago or 9% Represents 66% of total customer deposits
5 .86% .86% .85% .88% .95% .60% .70% .80% .90% Earnings Per Share / Return on Assets GOAL OF 1% ROA $.21 $.22 $.25 $.27 $.29 $.16 $.20 $.24 $.28 3Q13 4Q13 1Q14 2Q14 3Q14 E A R N I N G S P E R S H A R E R E T U R N O N A S S E T S EPS ROA
6 2014 Goals HOW? LEVERAGE OUR STRENGTHS Community bank service with large bank resources Strong local leadership and senior management Funding strength in legacy markets Consistent and attractive culture Class leading customer satisfaction Continue to invest in and improve commercial and retail capabilities Diversify portfolio – focus on: C&I; owner occupied; specialized lending for healthcare, corporate, asset - based and SBA Momentum building across footprint Invest in people; strengthen commercial and grow specialized lending area and markets Grow loans in mid - single digits Improve retail and small business bank Grow sales with better / diversified product design, merchandising and campaign execution Improve our technology with a focus on making it easy for our customers to bank with us Increase core transaction deposits in the mid - single digits Grow net interest revenue by improving pricing discipline on both loans and deposits Credit trends and costs continue at or below current levels Grow fee revenue by investing in mortgage, advisory services, and SBA capabilities Maintain operating efficiency below 60 percent while investing in revenue producers Seek acquisition opportunities that fit our culture, risk and return targets
7 Core Earnings Trend and Core Fee Revenue $54.2 $55.9 $54.2 $55.0 $57.0 $39.3 $41.2 $38.7 $40.1 $41.1 $28.9 $27.9 $27.4 $28.8 $30.3 $14.1 $13.2 $11.9 $13.9 $14.4 $10 $20 $30 $40 $50 $60 3Q13 4Q13 1Q14 2Q14 3Q14 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue Core Earnings $30.3 Million Up $1.5 million from 2Q14 and up $1.4 from a year ago. $ in millions 3Q14 2Q14 3Q13 Net Interest Revenue 56,967$ 2,017$ 2,710$ Fee Revenue 14,419 481 453 Gross Revenue 71,386 2,498 3,163 Operating Expense (Excl OREO) 41,097 966 1,772 Pre-Tax, Pre-Credit (Core) 30,289$ 1,532$ 1,391$ Net Interest Margin 3.32 % .11 % .06 % Variance - Increase / (Decrease) 3Q14 2Q14 3Q13 Overdraft Fees 3,071$ 127$ (132)$ Interchange Fees 3,811 (165) (141) Other Service Charges 1,320 (287) 19 Total Service Charges and Fees 8,202 (325) (254) Mortgage Loan & Related Fees 2,178 301 (376) Brokerage Fees 1,209 (36) (65) Gains from SBA Loan Sales 945 201 945 Other 1,885 340 203 Total Fee Revenue - Core 14,419 481 453 Non-Core (1) (7) (212) (266) Reported - GAAP 14,412$ 269$ 187$ Variance - Increase / (Decrease) (1) Includes securities gains and losses and losses on prepayment of borrowings, gains on bank owned life insurance policies, and gains and losses on deferred compensation plan assets. CORE EARNINGS CORE FEE REVENUE $ in thousands
8 Core Operating Expenses (1) Includes foreclosed property costs, severance, and gains and losses on deferred compensation plan liabilities. $ in thousands 3Q14 2Q14 3Q13 Salaries & Employee Benefits 25,684$ 1,696$ 3,172$ Communications & Equipment 3,094 57 (211) Occupancy 3,425 163 46 FDIC Assessment 1,131 (294) (1,274) Advertising & Public Relations 894 (245) (68) Postage, Printing & Supplies 876 72 232 Professional Fees 2,274 102 (376) Other Expense 3,719 (585) 251 Core Operating Expenses 41,097 966 1,772 Non-Core (1) 267 (134) (505) Reported GAAP 41,364$ 832$ 1,267$ 3Q14 2Q14 3Q13 Efficiency Ratio 57.96 % (.69) % (.59) % Variance - Increase / (Decrease)
9 Key Drivers of Net Interest Revenue / Margin $54.3 $55.9 $54.2 $55.0 $57.0 $45 $49 $53 $57 3Q13 4Q13 1Q14 2Q14 3Q14 Net Interest Revenue 3Q growth impacted by: Net loan growth Higher securities yield $ in millions KEY DRIVERS OF NIR NET INTEREST REVENUE & MARGIN Loan / Securities Pricing Deposit Pricing (excl. brokered) 3.26% 3.26% 3.21% 3.21% 3.32% 3.00% 3.25% 3.50% 4.69% 4.44% 4.45% 1.83% 2.10% 2.23% .31% .27% .26% 0% 2% 4% 6% 3Q13 4Q13 1Q14 2Q14 3Q14 Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s .19 .17 .15 .16 .22 .25 .13 .12 .11 .04 .08 .12 .16 .20 .24 .28 3Q13 4Q13 1Q14 2Q14 3Q14 • CD pricing reflects the quarter - average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter CDs MMDA NOW
10 Net Income $ in thousands NET OPERATING INCOME 3Q14 2Q14 3Q13 Core Earnings (Pre-Tax, Pre-Credit) 30,289$ 1,532$ 1,391$ Provision for Loan Loss 2,000 (200) (1,000) NON-CORE FEE REVENUE: Securities Gains 11 (4,424) 11 Loss on Prepayment of Borrowings - 4,446 - Bank Owned Life Insurance Policy Gain - - (86) Deferred Compensation Plan Assets Gains (Losses) (18) (234) (191) Total Non-Core Fee Revenue (7) (212) (266) NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 108 (197) (221) Foreclosed Property (Gains) Losses on Sales (264) 159 384 Forclosed Property Maintenance Expenses 441 221 (72) Severance Costs - (83) (405) Gains (Losses) on Deferred Comp Plan Liability (18) (234) (191) Total Non-Core Operating Expenses 267 (134) (505) Income Tax Expense 10,399 395 514 Net Income 17,616$ 1,259$ 2,116$ Preferred Stock Dividends - - 3,059 Net Income Avail to Common Shareholders 17,616$ 1,259$ 5,175$ Net Income Per Share .29$ .02$ .08$ Tangible Book Value 12.10$ .19$ 1.15$ Return on Assets .95 % .07 % .09 % Return on Common Equity 9.41 .42 2.03 Variance - Increase / (Decrease) 60.2M Shares Outstanding Quarterly Net Income $ in millions 3Q14 $17.6 2Q14 $16.4 1Q14 $15.4 4Q13 15.9 3Q13 15.5
11 Customer Deposit Mix & Core Growth $ in thousands Time >$100M 9% Demand & NOW 37% Deposits by % / Customer Mix Public Funds 14% Time <$100M 13% MMDA & Sav 27% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% 3Q14 $5.8B 64%* 2Q08 $6.2B 34%* 3Q14 2Q14 3Q13 4Q08 Demand / NOW 2,159$ 2,106$ 1,979$ 1,457$ MMDA / Savings 1,555 1,518 1,437 630 Core Transaction 3,714 3,624 3,416 2,087 Time < $100,000 770 801 920 1,945 Public Deposits 820 760 734 755 Total Core 5,304 5,185 5,070 4,787 Time >$100,000 500 521 593 1,336 Public Deposits 32 33 31 87 Total Customer 5,836 5,739 5,694 6,210 Brokered Deposits 405 425 419 793 Total Deposits 6,241$ 6,164$ 6,113$ 7,003$ Total Deposit Mix Core Deposit Growth – Category & Market CATEGORY 3Q14 YTD MARKET 3Q14 YTD Demand 40.6$ 176.5$ Atlanta 25.4$ 106.1$ MM Accounts 28.4 49.6 N. Georgia 36.4 87.0 Savings 8.7 36.8 North Carolina 23.6 43.5 NOW 12.5 14.1 Coastal Georgia 5.7 21.5 Total Categories 90.2$ 277.0$ Tennessee (1.4) 2.7 Gainesville 1.8 14.2 Growth (Annualized) 10 % South Carolina (1.3) 2.0 90.2$ 277.0$ Growth Growth *% of core transaction customer deposits Significant growth in core transaction deposits since 4Q08
12 Capital Ratios Holding Company Well- Cap 3Q14 2Q14 1Q14 4Q13 3Q13 Tier I Risk Based Capital ("RBC") 6 % 12.1 % 11.8 % 11.1 % 12.7 % 14.2 % Total RBC 10 13.3 13.0 12.4 14.0 15.5 Leverage 5 8.7 8.3 8.0 9.1 10.0 Tier 1 Common RBC 11.0 10.7 10.1 9.3 9.0 Tangible Common to Assets 9.8 9.6 9.2 9.0 9.0 Tangible Equity to Assets 9.8 9.6 9.5 11.6 11.8 Bank Well- Cap 3Q14 2Q14 1Q14 4Q13 3Q13 Tier 1 RBC 6 % 12.6 % 13.4 % 12.6 % 13.5 % 14.5 % Total RBC 10 13.8 14.6 13.9 14.8 15.7 Leverage 5 9.1 9.4 9.1 9.6 10.2
13 Loan Portfolio (total $4.57 billion) Retail 31% $1.308 C&I 34% $1.424 Inv RE 17% $.699 Diversifying Portfolio Retail 37% $1.672 C&I 39% $1.804 Inv RE 13% $.605 Commercial 57% $2.59 Geographic Diversity Residential Mortgage 29% $1.32 Period $ in Billions 3Q14 $4.57 2Q14 $4.410 1Q14 $4.356 4Q13 $4.329 3Q13 $4.267 By Loan Type 1Q11 $4.194 3Q14 $4.57 Reduced concentrations of A&D and Investor RE loans South Carolina / Corporate $ .337 Gainesville MSA $ .254 East Tennessee $ .281 Coastal Georgia $ .444 Western North Carolina $ .553 North Georgia $ 1.168 Other (Indirect Auto) $.243 Atlanta MSA $ 1.289 0% 12% 24% 36% 6% 6% 10% 12% 27% 29% Total Loans Loan Diversification & Type • Reducing land exposure • Focus on small business, C&I, and specialized lending • Enhanced retail products 5% 7% $ in billions
14 New Loans Funded and Advances (1) $ in millions $370.9 $324.5 $287.5 $356.8 $453.1 $275 $325 $375 $425 $475 3Q13 4Q13 1Q14 2Q14 3Q14 CATEGORY 3Q14 2Q14 3Q13 3Q14 2Q14 3Q13 Commercial C & I 150.0$ 115.4$ 64.5$ Atlanta 96.7$ 91.0$ 116.6$ Owner Occupied CRE 48.1 65.6 58.2 Coastal Georgia 38.4 28.5 40.5 Income Producing CRE 62.1 40.8 28.1 N. Georgia 61.5 69.0 71.5 Commercial Constr. 3.9 2.7 4.9 North Carolina 25.9 21.0 38.4 Total Commercial 264.1 224.5 155.7 Tennessee 27.0 16.7 18.9 Residential Mortgage 31.6 19.2 49.8 Gainesville 10.9 10.1 18.6 Residential HELOC 43.5 32.9 55.4 South Carolina 141.4 88.3 13.5 Residential Construction 44.8 34.0 32.5 Other (Indirect Auto) 51.3 32.2 52.9 Consumer 69.1 46.2 77.5 Total Markets 453.1$ 356.8$ 370.9$ Total Categories 453.1$ 356.8$ 370.9$ New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)
15 Commercial Loans (total $2.59 billion) $ in billions CRE Owner Occupied 45% $1.15B Geographic Diversity CRE Income Producing 23% $.60B C & I 25% $.65B Coastal Georgia $ .325 Gainesville MSA $ .177 Western North Carolina $ .155 South Carolina $ .330 North Georgia $ .515 East Tennessee $ .133 Atlanta MSA $.952 0% 12% 24% 36% 7% 7% 8% 13% 20% 37% Average Loan Size Type $ in Thousands Owner Occup’d $423 Income Prod 609 C & I 123 Comm Constr 500 By Loan Type 5%
16 Retail (total $1.67 billion) Geographic Diversity Home Equity LOC 27% $.459B Avg loan size $48 thousand South Carolina $ .007 Coastal Georgia $ .101 East Tennessee $ .135 Atlanta MSA $ .264 Western North Carolina $ .333 North Georgia $ .521 Gainesville MSA $.068 Indirect Auto $.243 0% 12% 24% 36% 1% 6% 8% 16% 20% 31% By Loan Type Mortgage 52% $.866B Avg loan size $99 thousand 4% 14% $ in billions Success with new portfolio products and HELOCs Conservative underwriting 62.5% of HE Primary Lien
17 Residential Construction (total $307 million) $ in millions Geographic Diversity Raw 11% $35 Lot 48% $146 East Tennessee $ 12 Gainesville MSA $ 9 Coastal Georgia $ 18 Western North Carolina $ 65 Atlanta MSA $ 72 North Georgia $ 131 0% 12% 24% 36% 48% 3% 4% 6% 21% 23% 43% By Loan Type 3Q14 2Q14 1Q14 4Q13 3Q13 3Q14 vs. 3Q13 TOTAL COMPANY Land Loans Developing 36$ 34$ 37$ 39$ 40$ (4)$ Raw 35 36 37 38 35 - Lot 146 151 159 166 167 (21) Total 217 221 233 243 242 (25) Construction Loans Spec 18 19 19 23 30 (12) Sold 72 62 66 62 46 26 Total 90 81 85 85 76 14 Total 307$ 302$ 318$ 328$ 318$ (11)$
18 Credit Quality $ in millions 3Q14 2Q14 1Q14 4Q13 3Q13 Net Charge-offs 3.2$ 4.2$ 4.0$ 4.4$ 4.5$ as % of Average Loans .28 % .38 % .38 % .41 % .42 % Allowance for Loan Losses 71.9$ 73.2$ 75.2$ 76.8$ 80.4$ as % of Total Loans 1.57 % 1.66 % 1.73 % 1.77 % 1.88 % as % of NPLs 384 353 299 286 308 Past Due Loans (30 - 89 Days) .35% .32% .40% .58% .45% Non-Performing Loans 18.7$ 20.7$ 25.2$ 26.8$ 26.1$ OREO 3.2 3.0 5.6 4.2 4.5 Total NPAs 21.9 23.7 30.8 31.0 30.6 Performing Classified Loans 149.0 147.5 164.9 172.7 173.6 Total Classified Assets 170.9$ 171.2$ 195.7$ 203.7$ 204.2$ as % of Tier 1 / Allowance 24 % 23 % 27 % 27 % 26 % Accruing TDRs (see page 27) 82.2$ 84.5$ 77.9$ 78.7$ 79.8$ As % of Original Principal Balance Non-Performing Loans 68.6 % 66.5 % 65.8 % 65.3 % 61.6 % OREO 54.5 50.4 53.9 44.5 41.5 Total NPAs as % of Total Assets .29 .32 .42 .42 .42 as % of Loans & OREO .48 .54 .71 .72 .72
19 Non - Performing Loans (NPLs) Inflow Trends $ in millions $10.0 $11.0 $9.3 $9.5 $7.7 $0 $5 $10 $15 3Q13 4Q13 1Q14 2Q14 3Q14 Resi Constr Comm Constr Resi Mtg Comm RE Comm Consumer Quarterly NPL Inflows Total NPLs 26.1 26.8 25.2 20.7 18.7 $0 $6 $12 $18 $24 3Q13 4Q13 1Q14 2Q14 3Q14
20 Performing Classified Loans $ in millions 3Q13 4Q13 1Q14 2Q14 3Q14 Commercial: Commercial & Industrial 10$ 9$ 8$ 6$ 7$ Owner Occupied 40 43 48 48 50 Total C & I 50 52 56 54 57 Income Producing CRE 36 34 37 25 22 Commercial Construction 17 17 5 4 4 Total Commercial 103 104 98 83 83 Residential Mortgage 45 44 43 42 43 Home Equity Lines of Credit 8 8 8 7 8 Residential Construction 16 14 13 13 12 Consumer / Installment 2 3 2 2 3 Total Performing Classified 174$ 173$ 164$ 147$ 149$ Classified to Tier 1 + ALL 26% 27% 27% 23% 24% $173.6 $172.7 $164.9 $147.5 $149.0 $140 $160 $180 3Q13 4Q13 1Q14 2Q14 3Q14 By Category
21 TDRs $ in thousands $79.8 $78.7 $77.9 $84.5 $82.2 $- $50 $100 $150 3Q13 4Q13 1Q14 2Q14 3Q14 LOAN TYPE 3Q14 (1) 3Q13 3Q14 3Q13 3Q14 3Q13 Commercial (Sec by RE) 42,820$ 40,733$ 2,532$ 2,431$ 45,352$ 43,164$ Commercial & Industrial 2,927 2,854 13 65 2,941 2,919 Commercial Construction 11,065 12,824 19 - 11,084 12,824 Total Commercial 56,812 56,411 2,564 2,496 59,377 58,907 Residential Mortgage 16,848 15,553 2,040 2,376 18,887 17,929 Residential Construction 8,288 7,738 1,796 2,553 10,084 10,291 Consumer Installment 211 144 34 59 245 203 Total 82,159$ 79,846$ 6,434$ 7,484$ 88,593$ 87,330$ Accruing Non-Accruing Total TDRs Accruing TDRs TDR credit quality improving Accruing TDR past due 30 – 89 days = 2.46% 54% of accruing TDRs are pass credits (1) 73.3 percent of accruing TDR loans have an interest rate of 4 percent or greater $ in millions
22 Net Charge - offs by Category & Market $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 2Q14 1Q14 4Q13 3Q13 Commercial (Sec. by RE): Owner Occupied 746$ .26 % (.64) % .10 % .57 % .58 % Income Producing 104 .07 .29 .13 .21 .14 Total Comm (Sec. by RE) 850 .19 (.32) .11 .44 .49 Commercial & Industrial (341) (.23) .52 .35 (.13) .12 Commercial Construction 103 .24 .34 - (.02) .39 Total Commercial 612 .10 (.10) .15 .30 .36 - - - - Residential Mortgage 1,116 .52 1.17 .70 .64 .31 Home Equity LOC 356 .31 .42 .93 .38 .37 Residential Construction 712 .94 2.13 .27 .40 1.31 Consumer/ Installment 359 .43 .18 .54 .62 .28 Total Net Charge-offs 3,155$ .28 .38 .38 .41 .42 NET CHARGE-OFFS BY MARKET North Georgia 1,861$ .63 % (.25) % .42 % .51 % .66 % Atlanta MSA (250) (.08) .46 .39 .20 .33 North Carolina 656 .47 1.55 .41 .76 .49 Coastal Georgia 228 .21 .11 .49 .33 .14 Gainesville MSA 259 .40 1.23 .22 .54 .15 East Tennessee 230 .33 .42 .35 .46 .51 South Carolina / Corporate 5 .01 - - - - Other (Indirect Auto) 166 .31 .14 .14 .20 .17 3Q14 % of Average Loans (Annualized)
23 NPAs by Loan Category & Market $ in thousands $30.6 $31.0 $30.8 $23.7 $21.9 $0 $10.0 $20.0 $30.0 3Q13 4Q13 1Q14 2Q14 3Q14 Non-Performing Loans Foreclosed Properties (OREO) NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 2,156$ 1,024$ 3,180$ Owner Occupied 6,358$ 591$ 6,949$ Income Producing 1,742 42 1,784 Income Producing 1,657 139 1,796 Commercial & Industrial 1,593 - 1,593 Commercial & Industrial 609 376 985 Commercial Construction 148 - 148 Commercial Construction 343 - 343 Total Commercial 5,639 1,066 6,705 Total Commercial 8,967 1,106 10,073 Residential Mortgage 8,350 1,769 10,119 Residential Mortgage 11,335 1,679 13,014 HELOC 720 90 810 HELOC 1,169 475 1,644 Residential Construction 3,543 221 3,764 Residential Construction 4,097 1,207 5,304 Consumer/ Installment 493 - 493 Consumer/ Installment 520 - 520 Total 18,745$ 3,146$ 21,891$ Total 26,088$ 4,467$ 30,555$ MARKET MARKET Gainesville 1,403$ 85$ 1,488$ Gainesville 1,036$ -$ 1,036$ Coastal Georgia 781 160 941 Coastal Georgia 995 928 1,923 East Tennessee 1,227 245 1,472 East Tennessee 1,629 25 1,654 North Carolina 4,919 398 5,317 North Carolina 5,680 762 6,442 Atlanta MSA 1,724 364 2,088 Atlanta MSA 3,096 1,026 4,122 North Georgia 7,392 1,717 9,109 North Georgia 13,652 1,726 15,378 South Carolina 945 177 1,122 Indirect Auto 354 - 354 3Q14 3Q13 *NPAs to total assets – .29% Allowance to loans at 1.57% Non Performing Assets
APPENDIX
25 Footprint Savannah Nashville Greenville Asheville Atlanta Chattanooga Raleigh Charlotte Charleston Myrtle Beach Knoxville Current Footprint Blairsville Headquartered in Blairsville, Georgia with 103 locations in: Georgia; North Carolina; South Carolina; and Tennessee
26 United at a Glance Founded in 1950 Third - largest bank holding company headquartered in Georgia with 1,515 employees Key Statistics as of 9/30/14 (in billions) Assets Deposits Loans $7.53 $6.24 $4.57 Deposit Market Share (1) Market Offices Deposit Market Share Rank North Georgia 22 35% 1 Atlanta 36 4 6 Gainesville 5 12 4 Coastal Georgia 8 5 7 W. North Carolina 19 8 3 E. Tennessee 8 2 8 Greenville, SC 1 1 25 (1) FDIC deposit market share and rank as of June 30, 2014 for markets where United takes deposits. Source: SNL and FDIC. Excludes 5 Loan Production Offices in GA, TN and SC.
27 Business and Operating Model Service is Point of Differentiation #1 in Customer Satisfaction according to Customer Service Profiles #1 in Southeast and #2 in US in Customer Satisfaction by national research company Golden rule of banking – treating people the way we want to be treated “The Bank that SERVICE Built SM ” Customer surveys consistently reveal 95%+ satisfaction rate Local CEOs with deep roots in their communities Resources of a $7.53 billion bank Operates in a number of the more demographically attractive U.S. markets Organic growth supported by de novos and selective acquisitions Twenty - eight “community banks” Strategic footprint with substantial banking opportunities Disciplined growth strategy “Community bank service, large bank resources”
28 Experienced Proven Leadership Jimmy C. Tallent President & CEO Joined 1984 H. Lynn Harton Chief Operating Officer Joined 2012 Rex S. Schuette EVP & CFO Joined 2001 David P. Shearrow EVP & CRO Joined 2007 Bill M. Gilbert President of Community Banking Joined 2000 • Over 40 years in banking • Led company from $42 million in assets in 1989 to $7.5 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 31 years in banking • Responsible for overall operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 36 years in banking • Responsible for accounting, finance and reporting activities, M&A, and investor relations • Former CAO and Controller for State Street Corporation • Former ABA Accounting Committee Chairman • Over 31 years in banking • Responsible for Risk Management and Credit Risk Administration; Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 36 years in banking • Responsible for 28 community banks with 103 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman
29 Market Share Opportunities & Demographics North Georgia $ 6.3 $ 2.2 11 22 35% 1 Western North Carolina 11.3 .9 1 19 8 3 Gainesville, Georgia 2.8 .3 1 5 12 4 Atlanta, Georgia 56.3 2.2 10 36 4 6 Coastal Georgia 7.1 .3 2 8 5 7 East Tennessee 15.7 .3 2 8 2 8 Greenville, SC 9.4 - 1 1 1 25 Total Markets $ 108.9 $ 6.2 28 99 ¹ FDIC deposit market share and rank as of 6/14 for markets where United takes deposits. Data Source: FDIC. 2 Based on current quarter. 3 Excludes five loan production offices Population Actual Projected Markets 1 (in thousands) 2010 - 2014 2014 - 2019 Atlanta, GA MSA 5,574 5% 3% East Tennessee 877 3 3 Greenville-Mauldin-Easley, SC MSA 856 4 4 Western North Carolina 443 2 5 Coastal Georgia 401 5 4 North Georgia 385 - 3 Gainesville, GA MSA 189 5 2 Total Markets Georgia 10,072 4 3 North Carolina 10,358 4 5 Tennessee 6,532 3 4 South Carolina 4,792 4 5 United States 317,199 3 3 ¹ Population data is for 2014 and includes those markets where United takes deposits. Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1) Population Growth (%) FAST GROWING MARKETS EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1)
30 LOANS / DEPOSITS WHOLESALE BORROWINGS Liquidity 3Q14 2Q14 3Q13 vs 3Q13 Loans 4,569$ 4,410$ 4,267$ 159$ 302$ Core (DDA, MMDA, Savings) 3,714$ 3,624$ 3,416$ 90$ 298$ Public Funds 852 793 765 59 87 CD's 1,269 1,322 1,513 (53) (244) Total Deposits (excl Brokered) 5,835$ 5,739$ 5,694$ 96$ 141$ Loan to Deposit Ratio 78% 77% 75% Investment Securities: Available for Sale -Fixed 1,115$ 1,076$ 1,138$ 39$ (23)$ -Floating 674 665 825 9 (151) Held to Maturity -Fixed 428 443 197 (15) 231 -Floating 5 6 9 (1) (4) Total Investment Securities 2,222 2,190 2,169 32 53 Floating as % of Total Securities 31% 31% 18% vs 2Q14 Variance Unused Capacity 3Q14 2Q14 3Q13 vs 2Q14 vs 3Q13 Wholesale Borrowings Brokered Deposits 313$ (1) 405$ 424$ 419$ (19)$ (14)$ FHLB 516 330 175 - 155 330 Holding Company LOC 50 - 40 - (40) - Fed Funds 350 - 25 - (25) - Other Wholesale - 6 11 54 (5) (48) Total 1,229$ 741$ 675$ 473$ 66$ 268$ Long-Term Debt Senior Debt 75$ 75$ 75$ -$ -$ Sub-Debt - - - - - Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 130$ 130$ 130$ -$ -$ Variance $ in millions (1) Estimated brokered deposit total capacity at 10% of assets
31 Business Mix – Deposits (at quarter - end) 3Q14 vs. DEPOSITS BY CATEGORY 3Q14 2Q14 1Q14 4Q13 3Q13 3Q13 Demand & Now 2,159$ 2,106$ 2,073$ 1,969$ 1,979$ 180$ MMDA & Savings 1,555 1,518 1,499 1,468 1,437 118 Core Transaction Deposits 3,714 3,624 3,572 3,437 3,416 298 Time < $100,000 770 801 828 888 920 (150) Time ≥ $100,000 < $250,000 408 411 427 443 473 (65) Public Deposits 820 760 804 863 734 86 Total Core Deposits 5,712 5,596 5,631 5,631 5,543 169 Time ≥ $250,000 92 110 112 114 120 (28) Public Deposits 32 33 34 32 31 1 Total Customer Deposits 5,836 5,739 5,777 5,777 5,694 142 Brokered Deposits 405 425 471 425 419 (14) Total Deposits 6,241$ 6,164$ 6,248$ 6,202$ 6,113$ 128$ $ in millions
32 Core Transaction Deposits $1,442 $981 $620 $235 $233 $180 $23 $1,416 $944 $597 $234 $228 $181 $24 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Atlanta MSA North Georgia North Carolina Gainesville MSA Coastal Georgia East Tennessee South Carolina 2Q14 3Q14 2Q14 South Carolina 99.0 % 99.0 % Gainesville MSA 73.3 72.4 Coastal GA 71.5 70.6 East TN 68.7 66.2 North Carolina 66.7 66.0 Atlanta MSA 64.8 65.9 North Georgia 63.7 54.2 Total 65.9 % 63.1 % 3Q14 Core Transactions / Total Deposits $ in millions
33 Lending & Credit Environment Regional Credit Review – Standard Underwriting • Legal Lending Limit $ 197 • House Lending Limit 25 • Project Lending Limit 15 • Top 25 Relationships 385 PROACTIVELY ADDRESSING CREDIT ENVIRONMENT STRUCTURE PROCESS • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement POLICY • Ongoing enhancements to credit policy • Quarterly updates to portfolio limits and concentrations (Quarterly reviewing with Board of Directors) • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals x Weekly senior credit meetings x Weekly NPA/ORE and past due meetings x Quarterly criticized watch loan review meetings $ in millions
34 Commercial Construction & Real Estate Average Loan Size ($ in thousands) • Commercial Construction $500 • Commercial RE: • Composite CRE 460 • Owner Occupied 423 • Income Producing 609 Commercial RE Characteristics • 65.5% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $15 million project limit $ in millions Amount Percent Land Develop - Vacant (Improved) 51$ 28 % Raw Land - Vacant (Unimproved) 24 13 Multi-Residential 41 23 Commercial Land Development 14 8 Office Buildings 12 7 Other Properties 15 8 Churches 7 4 Hotels / Motels 12 7 Mfg Facility - - Retail Building 3 2 Warehouse 2 1 Total Commercial Construction 181$ 30-Sep-14 COMMERCIAL CONSTRUCTION Owner Occupied Income Producing Total Percent Office Buildings 315$ 148$ 463$ 26.3 % Retail Building 96 152 248 14.1 Warehouse 116 60 176 10.0 Churches 136 - 136 7.7 Other Properties 123 38 161 9.2 Convenience Stores 95 17 112 6.3 Hotels / Motels - 65 65 3.7 Restaurants/Franchise Fast Food 34 26 60 3.4 Mfg Facility 51 12 63 3.6 Farmland 50 - 50 2.9 Multi-Resi Properties - 52 52 3.0 Leasehold Property 16 14 30 1.7 Golf Course/Country Club 24 - 24 1.4 Automotive Dealership 18 4 22 1.2 Automotive Service 18 5 23 1.3 Daycare Facility 11 7 18 1.0 Funeral Home 14 1 15 .9 Carwash 16 - 16 .9 Assisted Living / Nursing Home 11 - 11 .6 Marina 6 - 6 .3 Mobile Home Parks - 5 5 .3 Movie Theaters/Bowling/Rec 5 - 5 .3 Other Small Business - - - - Total Commercial Real Estate 1,154$ 605$ 1,759$ 30-Sep-14 COMMERCIAL REAL ESTATE
35 Loans by Business Mix and Region 3Q14 2Q14 1Q14 4Q13 3Q13 3Q14 vs. 3Q13 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 650$ 554$ 495$ 472$ 457$ 193$ Owner Occ'd 1,154 1,163 1,142 1,134 1,129 25 Total C & I 1,804 1,717 1,637 1,606 1,586 218 Income Prod CRE 605 598 624 623 614 (9) Comm Constr 181 160 148 149 137 44 Total Comm 2,590 2,475 2,409 2,378 2,337 253 Resi Mortgage 1,324 1,312 1,313 1,316 1,309 15 Resi Constr 307 302 318 328 318 (11) Consum / Install 348 321 316 307 303 45 Total Loans 4,569$ 4,410$ 4,356$ 4,329$ 4,267$ 302$ 3Q14 2Q14 1Q14 4Q13 3Q13 3Q14 vs. 3Q13 QUARTERLY LOANS - BY REGION North Georgia 1,168$ 1,175$ 1,205$ 1,240$ 1,262$ (94)$ Atlanta MSA 1,289 1,305 1,290 1,275 1,246 43 North Carolina 553 555 563 572 575 (22) Coastal Georgia 444 426 425 423 421 23 Gainesville MSA 254 257 262 255 253 1 East Tennessee 281 270 272 280 277 4 South Carolina 337 206 131 88 47 290 Other (Ind. Auto) 243 216 208 196 186 57 Total Loans 4,569$ 4,410$ 4,356$ 4,329$ 4,267$ 302$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 472$ 458$ 428$ 441$ 390$ Owner Occ'd 1,134 1,131 1,112 980 963 Total C & I 1,606 1,589 1,540 1,421 1,353 Income Prod CRE 623 682 710 781 816 Comm Constr 149 155 164 297 363 Total Comm 2,378 2,426 2,414 2,499 2,532 Resi Mortgage 1,316 1,214 1,135 1,279 1,427 Resi Constr 328 382 448 695 1,050 Consum / Install 307 153 113 131 142 Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BY REGION North Georgia 1,240$ 1,364$ 1,426$ 1,689$ 1,884$ Atlanta MSA 1,275 1,250 1,220 1,310 1,435 North Carolina 572 579 597 702 772 Coastal Georgia 423 400 346 335 405 Gainesville MSA 255 261 265 312 390 East Tennessee 280 283 256 256 265 South Carolina 88 - - - - Other (Ind. Auto) 196 38 - - - Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ $ in millions
36 Non - GAAP Reconciliation Tables 3Q14 2Q14 1Q14 4Q13 3Q13 CORE FEE REVENUE Core fee revenue 14,419$ 13,938$ 11,930$ 13,219$ 13,966$ Securities gains, net 11 4,435 217 70 - Losses on prepayment of borrowings - (4,446) BOLI death benefit gain - - - - 86 Mark to market on deferred compensation plan assets (18) 216 29 230 173 Fee revenue (GAAP) 14,412$ 14,143$ 12,176$ 13,519$ 14,225$ CORE OPERATING EXPENSE Core operating expense 41,097$ 40,131$ 38,749$ 41,193$ 39,325$ Foreclosed property expense 285 102 116 191 194 Severance - 83 156 - 405 Mark to market on deferred compensation plan liability (18) 216 29 230 173 Operating expense (GAAP) 41,364$ 40,532$ 39,050$ 41,614$ 40,097$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 9.83 % 9.58 % 9.22 % 8.99 % 9.02 % Effect of preferred equity - - .28 2.60 2.74 Tangible equity to tangible assets 9.83 9.58 9.50 11.59 11.76 Effect of goodwill and other intangibles .02 .03 .02 .03 .04 Equity to assets (GAAP) 9.85 % 9.61 % 9.52 % 11.62 % 11.80 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 14.10 % 13.92 % 13.63 % 13.18 % 13.34 % Effect of preferred equity - - - 2.39 4.01 Tangible equity to risk weighted assets 14.10 13.92 13.63 15.57 17.35 Effect of deferred tax limitation (3.39) (3.74) (3.92) (4.26) (4.72) Effect of other comprehensive income .34 .53 .36 .39 .49 Effect of trust preferred 1.02 1.04 1.03 1.04 1.09 Tier I capital ratio (Regulatory) 12.07 % 11.75 % 11.10 % 12.74 % 14.21 % Operating Earnings to GAAP Earnings Reconciliation $ in millions