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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
     
FORM 8-K
     
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): April 22, 2015
 
 
United Community Banks, Inc.
(Exact name of registrant as specified in its charter)
 
Georgia
  
No. 001-35095
  
No. 58-180-7304
(State or other jurisdiction of
  
(Commission File Number)
  
(IRS Employer
 incorporation)
      
Identification No.)
 
125 Highway 515 East
Blairsville, Georgia  30512
(Address of principal executive offices)
 
Registrant’s telephone number, including area code:
(706) 781-2265
 
Not applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
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 April 22, 2015, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended March 31, 2015 (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 April 22, 2015 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 First Quarter 2015 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
 
99.2
  
 
News Release, dated April 22, 2015
 
Investor Presentation, First Quarter 2015
 
 
 

 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  UNITED COMMUNITY BANKS, INC.  
       
       
 
By:
/s/ Rex S. Schuette  
   
Rex S. Schuette
Executive Vice President and
Chief Financial Officer
  
 
Date:  April 22, 2015
 
 

 



 

Exhibit 99.1
 
(UNITED LOGO)
 
For Immediate Release
 
For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com
 
UNITED COMMUNITY BANKS, INC. REPORTS
NET INCOME OF $17.7 MILLION FOR FIRST QUARTER 2015,
UP 15 PERCENT FROM A YEAR AGO
 
●
Earnings per diluted share of 29 cents, up 16 percent from first quarter of 2014
●
Loans up $116 million, or 10 percent annualized
●
Core transaction deposits up $206 million, or 22 percent annualized
●
Net interest margin holds steady at 3.31 percent
●
Regulatory approvals received for acquisition of MoneyTree Corporation / First National Bank
●
Announced merger with Palmetto Bancshares
 
BLAIRSVILLE, GA – April 22, 2015 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported net income of $17.7 million, or 29 cents per diluted share, for the first quarter of 2015.  Earnings per share were up 16 percent from a year ago. The increase reflects strong loan and core deposit growth, a stable net interest margin and growth in fee revenue.
 
“I am very pleased with our strong first quarter financial results and our outlook for the remainder of the year,” said Jimmy Tallent, chairman and chief executive officer.  “We had solid loan growth and a steady net interest margin.  Fee revenue was up with meaningful increases in our mortgage and brokerage businesses and higher gains from our SBA lending business.  Our return on assets was .94 percent, and return on equity was 9.3 percent.”
 
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Tallent continued, “The first quarter also included three non-core items.  We repaid $6 million in structured repurchase agreements that we were paying 4 percent interest, and redeemed $15.5 million in trust preferred securities that we were paying an average rate of 11 percent interest, resulting in total prepayment charges of $1.04 million that were included in fee revenue.  Repayment of these instruments will result in approximately $1.9 million in annual interest savings. Also, we paid the FDIC $690,000 to close the loss sharing agreements related to our acquisition of Southern Community Bank in June of 2009.  In addition to administrative cost savings, we will now retain 100 percent of the recoveries from previously covered losses. This will more than offset the $690,000 payment within the next two years.  And, we had securities gains of $1.54 million that offset most of the $1.73 million impact of these other non-core items.”
 
Tallent continued, “First quarter net loan growth of $116 million was driven by strong loan production of $423 million across all United markets.  Our community banks originated $314 million of loan production while our specialized lending area, which includes our health care, corporate, SBA, asset-based, middle market and commercial real estate lending businesses, produced $108 million.  Core deposit growth was another contributing factor with a linked-quarter increase of $206 million, or 22 percent annualized. Increased demand deposits in our Atlanta and north Georgia markets drove over half of this growth.”
 
First quarter taxable equivalent net interest revenue totaled $57.6 million, down $715,000 from the fourth quarter and up $3.45 million from the first quarter of 2014.  The taxable equivalent net interest margin of 3.31 percent held steady with the prior quarter and was up 10 basis points from a year ago.  Along with loan growth, this drove the increase in net interest revenue.
 
“The linked quarter decrease in net interest revenue was due to two fewer days of interest accruals in the first quarter,” said Tallent.  “We’ve been able to hold the margin steady in the low 3.30 percent range following our second quarter 2014 balance sheet management activities, which included restructuring the securities portfolio, interest rate hedges and wholesale borrowings.  However, we continue to see loan pricing pressures and expect our margin to decline slightly through the balance of 2015.  With only a modest decline, we expect loan growth to drive increases in net interest revenue going forward.”
 
2
 

 

 
The first quarter provision for credit losses was $1.8 million, equal to the fourth quarter and down $700,000 from the first quarter of 2014.  First quarter net charge-offs were $2.56 million compared with $2.51 million in the fourth quarter and $4.04 million a year ago.  Nonperforming assets to total assets were .26 percent, equal to last quarter and down from .42 percent a year ago.
 
First quarter fee revenue totaled $15.7 million, up $859,000 from the fourth quarter and $3.51 million from the first quarter of 2014.  The increase from a year ago resulted primarily from the growing SBA lending and mortgage businesses and the related gains on sales of loans.  SBA loan sale gains totaled $1.14 million in the first quarter of 2015 and $926,000 in the fourth quarter of 2014.  There were no gains from SBA loan sales in the first quarter of 2014.  Mortgage fees were up $644,000 from the fourth quarter and $1.40 million from a year ago, reflecting strong growth in new home purchases and an increase in refinancing activity.  Closed mortgage loans totaled $87.9 million in the first quarter of 2015, compared with $77.4 million and $46.0 million, respectively, in the fourth and first quarters of 2014.
 
First quarter brokerage fees of $1.55 million from United’s advisory services business were up $375,000 from both the fourth and first quarters of 2014.  Service charges and fees were down from both of these same prior quarters, mostly reflecting the declining trend in overdraft fees.
 
Tallent added, “The growing SBA lending business and the increase in mortgage and brokerage fees reflect our commitment to diversifying the revenue stream by focusing on fee generating products and services.”
 
Operating expenses were $43.1 million in the first quarter compared to $41.9 million in the fourth quarter and $39.1 million a year ago.  Excluding the non-core items in other operating expenses noted below, total core operating expenses were $42.4 million in the first quarter 2015 compared to $42.6 million in the fourth quarter and $39.1 million a year ago.  The current quarter is down slightly compared to the fourth quarter and up $3.3 million from a year ago.  The increase from a year ago was driven by higher salaries and employee benefit costs, and an increase in other operating costs.
 
3
 

 

 
First quarter salaries and employee benefits expense of $26.4 million was down $146,000 from the fourth quarter but up $2.05 million from a year ago.  The increase from a year ago reflects investment in new producers and support staff for the specialized lending area, and higher commissions and incentives associated with growth in the mortgage and advisory services businesses, as well as growth in commercial loans and core deposits.  Other operating expenses of $5.25 million for the first quarter were up $1.33 million and $1.40 million, respectively, from the fourth and first quarters of 2014.  First quarter 2015 other operating expenses included a non-core charge of $690,000 associated with closing all loss sharing agreements with the FDIC, as noted earlier.  The fourth quarter of 2014 included a $492,000 charge related to the FDIC’s adjustment for interest claimed on the first loss share filing which was more than offset by a $1.2 million reversal of a previously established litigation reserve.  Excluding these non-core items, other operating expenses were down slightly from the fourth quarter and up $705,000 from a year ago due to higher travel and lending-related costs to support loan growth.
 
“During the first quarter we received regulatory approvals for the previously announced merger with MoneyTree Corporation and its subsidiary First National Bank,” Tallent said.  “We expect the transaction to close as planned on May 1, with conversion of the operating systems by mid-July.  We look forward to expanding our Tennessee markets and welcoming the First National team of bankers to the United family.”
 
At March 31, 2015, capital ratios were as follows: Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.8 percent; Tier 1 Common Risk-Based of 11.5 percent; and, Tier 1 Leverage of 8.7 percent.
 
“We are off to a solid start in 2015, including strong growth in loans, core deposits and fee revenue,” Tallent said. “We are excited about executing our growth strategies to expand the franchise and add value for shareholders.  In addition to the completion of the MoneyTree transaction on May 1, we announced earlier today an agreement to acquire $1.2 billion-asset Palmetto Bancshares, Inc. and its 108 year-old bank – The Palmetto Bank – in Greenville, South Carolina.  The addition of MoneyTree will significantly increase our market share and customer base in eastern Tennessee, and the addition of Palmetto will make us the number one community bank in Upstate South Carolina.”
 
4
 

 

 
Conference Call
 
United will hold a conference call today, Wednesday, April 22, 2015, at 11 a.m. ET to discuss the contents of this news release and the separate news release regarding United’s merger with Palmetto Bancshares, Inc., and to share business highlights for the quarter.  To access the call, dial (877) 380-5665 and use the conference number 15339428.  The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.
 
About United Community Banks, Inc.
 
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.7 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 104 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.  In 2014, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and in 2015 was ranked fourteenth on the Forbes list of America’s Best Banks.  Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.
 
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Safe Harbor
 
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment.  These statements are based on current expectations and are provided to assist in the understanding of future financial performance.  Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements.  For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2014 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.”  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
 
# # #
 
6
 

 

                                     
UNITED COMMUNITY BANKS, INC.
                                    
Financial Highlights
                                    
Selected Financial Information
  
 
                                
First
  
   
2015
    
2014
    
Quarter
  
(in thousands, except per share
  
First
    
Fourth
    
Third
    
Second
    
First
     2015-2014  
data; taxable equivalent)
  
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Change
  
INCOME SUMMARY
                                      
Interest revenue
   $ 62,909     $ 64,353     $ 63,338     $ 61,783     $ 60,495          
Interest expense
     5,292       6,021       6,371       6,833       6,326          
    Net interest revenue
     57,617       58,332       56,967       54,950       54,169       6 %
Provision for credit losses
     1,800       1,800       2,000       2,200       2,500          
Fee revenue
     15,682       14,823       14,412       14,143       12,176       29  
   Total revenue
     71,499       71,355       69,379       66,893       63,845       12  
Operating expenses
     43,061       41,919       41,364       40,532       39,050       10  
Income before income taxes
     28,438       29,436       28,015       26,361       24,795       15  
Income tax expense
     10,768       11,189       10,399       10,004       9,395       15  
Net income
     17,670       18,247       17,616       16,357       15,400       15  
Preferred dividends and discount accretion
     -       -       -       -       439          
Net income available to common shareholders
   $ 17,670     $ 18,247     $ 17,616     $ 16,357     $ 14,961       18  
                                                 
PERFORMANCE MEASURES
                                                
  Per common share:
                                                
    Diluted income
   $ .29     $ .30     $ .29     $ .27     $ .25       16  
    Cash dividends declared
     .05       .05       .03       .03       -          
    Book value
     12.58       12.20       12.15       11.94       11.66       8  
    Tangible book value (2)
     12.53       12.15       12.10       11.91       11.63       8  
                                                 
  Key performance ratios:
                                                
    Return on common equity (1)(3)
     9.34 %     9.60 %     9.41 %     8.99 %     8.64 %        
    Return on assets (3)
     .94       .96       .95       .88       .85          
    Dividend payout ratio
     17.24       16.67       10.34       11.11       -          
    Net interest margin (3)
     3.31       3.31       3.32       3.21       3.21          
    Efficiency ratio
     59.15       57.47       57.96       58.65       59.05          
    Average equity to average assets
     9.86       9.76       9.85       9.61       9.52          
    Average tangible equity to average assets (2)
     9.82       9.72       9.83       9.58       9.50          
    Average tangible common equity to average assets (2)
     9.82       9.72       9.83       9.58       9.22          
    Tangible common equity to risk-weighted assets (2)(4)
     13.53       13.82       14.10       13.92       13.63          
                                                 
ASSET QUALITY
                                                
  Non-performing loans
   $ 19,015     $ 17,881     $ 18,745     $ 20,724     $ 25,250       (25 )
  Foreclosed properties
     1,158       1,726       3,146       2,969       5,594       (79 )
    Total non-performing assets (NPAs)
     20,173       19,607       21,891       23,693       30,844       (35 )
  Allowance for loan losses
     70,007       71,619       71,928       73,248       75,223          
  Net charge-offs
     2,562       2,509       3,155       4,175       4,039       (37 )
  Allowance for loan losses to loans
     1.46 %     1.53 %     1.57 %     1.66 %     1.73 %        
  Net charge-offs to average loans (3)
     .22       .22       .28       .38       .38          
  NPAs to loans and foreclosed properties
     .42       .42       .48       .54       .71          
  NPAs to total assets
     .26       .26       .29       .32       .42          
 
                                                
AVERAGE BALANCES ($ in millions)
                                                
  Loans
   $ 4,725     $ 4,621     $ 4,446     $ 4,376     $ 4,356       8  
  Investment securities
     2,203       2,222       2,231       2,326       2,320       (5 )
  Earning assets
     7,070       7,013       6,820       6,861       6,827       4  
  Total assets
     7,617       7,565       7,374       7,418       7,384       3  
  Deposits
     6,369       6,383       6,143       6,187       6,197       3  
  Shareholders’ equity
     751       738       726       713       703       7  
  Common shares - basic (thousands)
     60,905       60,830       60,776       60,712       60,059          
  Common shares - diluted (thousands)
     60,909       60,833       60,779       60,714       60,061          
                                                 
AT PERIOD END ($ in millions)
                                                
  Loans
   $ 4,788     $ 4,672     $ 4,569     $ 4,410     $ 4,356       10  
  Investment securities
     2,201       2,198       2,222       2,190       2,302       (4 )
  Total assets
     7,664       7,567       7,526       7,352       7,398       4  
  Deposits
     6,438       6,327       6,241       6,164       6,248       3  
  Shareholders’ equity
     764       740       736       722       704       9  
  Common shares outstanding (thousands)
     60,309       60,259       60,248       60,139       60,092          
                                                 
(1) 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). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized. (4) March 31, 2015 calculated under Basel III rules which became effective January 1, 2015.
  
 
 
 

 

 
                               
UNITED COMMUNITY BANKS, INC.
                              
Non-GAAP Performance Measures Reconciliation
                              
Selected Financial Information
  
   
2015
    
2014
  
(in thousands, except per share
  
First
    
Fourth
    
Third
    
Second
    
First
  
data; taxable equivalent)
  
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Quarter
  
                               
Interest revenue reconciliation
                              
Interest revenue - taxable equivalent
   $ 62,909     $ 64,353     $ 63,338     $ 61,783     $ 60,495  
Taxable equivalent adjustment
     (375 )     (398 )     (405 )     (377 )     (357 )
    Interest revenue (GAAP)
   $ 62,534     $ 63,955     $ 62,933     $ 61,406     $ 60,138  
                                         
Net interest revenue reconciliation
                                        
Net interest revenue - taxable equivalent
   $ 57,617     $ 58,332     $ 56,967     $ 54,950     $ 54,169  
Taxable equivalent adjustment
     (375 )     (398 )     (405 )     (377 )     (357 )
    Net interest revenue (GAAP)
   $ 57,242     $ 57,934     $ 56,562     $ 54,573     $ 53,812  
                                         
Total revenue reconciliation
                                        
Total operating revenue
   $ 71,499     $ 71,355     $ 69,379     $ 66,893     $ 63,845  
Taxable equivalent adjustment
     (375 )     (398 )     (405 )     (377 )     (357 )
    Total revenue (GAAP)
   $ 71,124     $ 70,957     $ 68,974     $ 66,516     $ 63,488  
                                         
Income before taxes reconciliation
                                        
Income before taxes
   $ 28,438     $ 29,436     $ 28,015     $ 26,361     $ 24,795  
Taxable equivalent adjustment
     (375 )     (398 )     (405 )     (377 )     (357 )
    Income before taxes (GAAP)
   $ 28,063     $ 29,038     $ 27,610     $ 25,984     $ 24,438  
                                         
Income tax expense (benefit) reconciliation
                                        
Income tax expense (benefit)
   $ 10,768     $ 11,189     $ 10,399     $ 10,004     $ 9,395  
Taxable equivalent adjustment
     (375 )     (398 )     (405 )     (377 )     (357 )
    Income tax expense (benefit) (GAAP)
   $ 10,393     $ 10,791     $ 9,994     $ 9,627     $ 9,038  
                                         
Book value per common share reconciliation
                                        
Tangible book value per common share
   $ 12.53     $ 12.15     $ 12.10     $ 11.91     $ 11.63  
Effect of goodwill and other intangibles
     .05       .05       .05       .03       .03  
   Book value per common share (GAAP)
   $ 12.58     $ 12.20     $ 12.15     $ 11.94     $ 11.66  
                                         
Average equity to assets reconciliation
                                        
Tangible common equity to assets
     9.82 %     9.72 %     9.83 %     9.58 %     9.22 %
Effect of preferred equity
     -       -       -       -       .28  
    Tangible equity to assets
     9.82       9.72       9.83       9.58       9.50  
Effect of goodwill and other intangibles
     .04       .04       .02       .03       .02  
    Equity to assets (GAAP)
     9.86 %     9.76 %     9.85 %     9.61 %     9.52 %
                                         
Tangible common equity to risk-weighted assets reconciliation (1)
                                        
Tangible common equity to risk-weighted assets
     13.53 %     13.82 %     14.10 %     13.92 %     13.63 %
Effect of other comprehensive income
     .19       .35       .34       .53       .36  
Effect of deferred tax limitation
     (2.86 )     (3.11 )     (3.39 )     (3.74 )     (3.92 )
Effect of trust preferred
     .67       1.00       1.02       1.04       1.03  
    Tier I capital ratio (Regulatory)
     11.53 %     12.06 %     12.07 %     11.75 %     11.10 %
 
(1) March 31, 2015 calculated under Basel III rules which became effective January 1, 2015.
 
 
 

 

 
                                           
UNITED COMMUNITY BANKS, INC.
  
Financial Highlights
  
Loan Portfolio Composition at Period-End
  
                                           
   
2015
    
2014
    
Linked
Quarter
Change
    
Year over
Year
Change
  
   
First
    
Fourth
    
Third
    
Second
    
First
          
(in millions)
  
Quarter
    
Quarter
    
Quarter
    
Quarter
    
Quarter
          
LOANS BY CATEGORY
                                          
Owner occupied commercial RE
   $ 1,167     $ 1,163     $ 1,153     $ 1,163     $ 1,142     $ 4     $ 25  
Income producing commercial RE
     636       599       605       598       624       37       12  
Commercial & industrial
     716       710       650       554       495       6       221  
Commercial construction
     230       196       181       160       148       34       82  
     Total commercial
     2,749       2,668       2,589       2,475       2,409       81       340  
Residential mortgage
     864       866       866       861       866       (2 )     (2 )
Home equity lines of credit
     465       466       459       451       447       (1 )     18  
Residential construction
     291       299       307       302       318       (8 )     (27 )
Consumer installment
     419       373       348       321       316       46       103  
     Total loans
   $ 4,788     $ 4,672     $ 4,569     $ 4,410     $ 4,356       116       432  
                                                         
LOANS BY MARKET
                                                        
North Georgia
   $ 1,150     $ 1,163     $ 1,168     $ 1,175     $ 1,205       (13 )     (55 )
Atlanta MSA
     1,296       1,282       1,289       1,305       1,290       14       6  
North Carolina
     539       553       553       555       563       (14 )     (24 )
Coastal Georgia
     476       456       444       426       425       20       51  
Gainesville MSA
     255       257       254       257       262       (2 )     (7 )
East Tennessee
     281       280       281       270       272       1       9  
South Carolina / Specialized Lending
     475       412       337       206       131       63       344  
Indirect auto
     316       269       243       216       208       47       108  
     Total loans
   $ 4,788     $ 4,672     $ 4,569     $ 4,410     $ 4,356       116       432  
 
 
 

 

 
                                                             
UNITED COMMUNITY BANKS, INC.
  
Financial Highlights
  
Credit Quality
  
 
                                                            
   
First Quarter 2015
    
Fourth Quarter 2014
    
Third 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
   $ 4,360     $ 173       $ 4,533     $ 4,133     $ 355       $ 4,488     $ 2,156     $ 1,024       $ 3,180  
Income producing CRE
     835       -         835       717       -         717       1,742       42         1,784  
Commercial & industrial
     1,629       -         1,629       1,571       -         1,571       1,593       -         1,593  
Commercial construction
     60       -         60       83       15         98       148       -         148  
     Total commercial
     6,884       173         7,057       6,504       370         6,874       5,639       1,066         6,705  
Residential mortgage
     8,669       796         9,465       8,196       1,183         9,379       8,350       1,769         10,119  
Home equity lines of credit
     693       50         743       695       40         735       720       90         810  
Residential construction
     2,127       139         2,266       2,006       133         2,139       3,543       221         3,764  
Consumer installment
     642       -         642       480       -         480       493       -         493  
     Total NPAs
   $ 19,015     $ 1,158       $ 20,173     $ 17,881     $ 1,726       $ 19,607     $ 18,745     $ 3,146       $ 21,891  
     Balance as a % of
                                                                              
          Unpaid Principal
     72.0 %     56.6 %       70.9 %     69.9 %     54.1 %       68.1 %     68.6 %     54.5 %       66.1 %
                                                                               
NONPERFORMING ASSETS BY MARKET
                                                                        
North Georgia
   $ 6,101     $ 662       $ 6,763     $ 5,669     $ 711       $ 6,380     $ 7,392     $ 1,717       $ 9,109  
Atlanta MSA
     1,903       227         2,130       1,837       372         2,209       1,724       364         2,088  
North Carolina
     5,321       159         5,480       5,221       234         5,455       4,919       398         5,317  
Coastal Georgia
     901       -         901       799       105         904       781       160         941  
Gainesville MSA
     781       22         803       1,310       81         1,391       1,403       85         1,488  
East Tennessee
     1,808       30         1,838       1,414       201         1,615       1,227       245         1,472  
South Carolina / Specialized Lending
     1,700       58         1,758       1,285       22         1,307       945       177         1,122  
Indirect auto
     500       -         500       346       -         346       354       -         354  
     Total NPAs
   $ 19,015     $ 1,158       $ 20,173     $ 17,881     $ 1,726       $ 19,607     $ 18,745     $ 3,146       $ 21,891  
                                                                               
NONPERFORMING ASSETS ACTIVITY
                                                                        
Beginning Balance
   $ 17,881     $ 1,726       $ 19,607     $ 18,745     $ 3,146       $ 21,891     $ 20,724     $ 2,969       $ 23,693  
Loans placed on non-accrual
     5,944       -         5,944       7,140       -         7,140       7,665       -         7,665  
Payments received
     (1,513 )     -         (1,513 )     (5,286 )     -         (5,286 )     (3,129 )     -         (3,129 )
Loan charge-offs
     (2,838 )     -         (2,838 )     (1,841 )     -         (1,841 )     (4,353 )     -         (4,353 )
Foreclosures
     (459 )     459         -       (877 )     877         -       (2,162 )     2,162         -  
Capitalized costs
     -       -         -       -       -         -       -       209         209  
Property sales
     -       (1,108 )       (1,108 )     -       (2,483 )       (2,483 )     -       (2,350 )       (2,350 )
Write downs
     -       (166 )       (166 )     -       (1 )       (1 )     -       (108 )       (108 )
Net gains (losses) on sales
     -       247         247       -       187         187       -       264         264  
     Ending Balance
   $ 19,015     $ 1,158       $ 20,173     $ 17,881     $ 1,726       $ 19,607     $ 18,745     $ 3,146       $ 21,891  
                                     
   
First Quarter 2015
    
Fourth Quarter 2014
    
Third 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 (1)
    
Charge-Offs
    
Loans (1)
    
Charge-Offs
    
Loans (1)
  
NET CHARGE-OFFS BY CATEGORY
                                
Owner occupied CRE
   $ 351       .12 %   $ 891       .31 %   $ 746       .26 %
Income producing CRE
     247       .16       143       .09       104       .07  
Commercial & industrial
     341       .19       (295 )     (.17 )     (341 )     (.23 )
Commercial construction
     22       .04       (6 )     (.01 )     103       .24  
     Total commercial
     961       .14       733       .11       612       .10  
Residential mortgage
     416       .20       1,226       .56       1,116       .52  
Home equity lines of credit
     59       .05       238       .20       356       .31  
Residential construction
     1,060       1.46       (44 )     (.06 )     712       .94  
Consumer installment
     66       .07       356       .39       359       .43  
     Total
   $ 2,562       .22     $ 2,509       .22     $ 3,155       .28  
                                                 
NET CHARGE-OFFS BY MARKET
                                          
North Georgia
   $ 1,053       .37 %   $ 791       .27 %   $ 1,861       .63 %
Atlanta MSA
     188       .06       147       .05       (250 )     (.08 )
North Carolina
     666       .49       1,103       .79       656       .47  
Coastal Georgia
     134       .12       30       .03       228       .21  
Gainesville MSA
     (65 )     (.10 )     94       .15       259       .40  
East Tennessee
     471       .68       54       .08       230       .33  
South Carolina / Specialized Lending
     -       -       110       .11       5       .01  
Indirect auto
     115       .16       180       .29       166       .31  
     Total
   $ 2,562       .22     $ 2,509       .22     $ 3,155       .28  
                                                 
(1)  Annualized.
                                                
 
 
 

 

 
             
UNITED COMMUNITY BANKS, INC.
            
Consolidated Statement of Income (Unaudited)
  
   
Three Months Ended
  
   
March 31,
  
(in thousands, except per share data)
  
2015
    
2014
  
             
Interest revenue:
            
Loans, including fees
   $ 49,664     $ 47,688  
Investment securities, including tax exempt of $158 and $188
     12,058       11,607  
Deposits in banks and short-term investments
     812       843  
Total interest revenue
     62,534       60,138  
                 
Interest expense:
                
Deposits:
                
NOW
     394       440  
Money market
     673       563  
Savings
     20       20  
Time
     1,109       1,771  
Total deposit interest expense
     2,196       2,794  
Short-term borrowings
     98       840  
Federal Home Loan Bank advances
     392       58  
Long-term debt
     2,606       2,634  
Total interest expense
     5,292       6,326  
Net interest revenue
     57,242       53,812  
Provision for credit losses
     1,800       2,500  
Net interest revenue after provision for credit losses
     55,442       51,312  
                 
Fee revenue:
                
Service charges and fees
     7,615       7,898  
Mortgage loan and other related fees
     2,755       1,354  
Brokerage fees
     1,551       1,177  
Gains from sales of SBA loans
     1,141       -  
Securities gains, net
     1,539       217  
Loss from prepayment of debt
     (1,038 )     -  
Other
     2,119       1,530  
Total fee revenue
     15,682       12,176  
Total revenue
     71,124       63,488  
                 
Operating expenses:
                
Salaries and employee benefits
     26,446       24,396  
Communications and equipment
     3,271       3,239  
Occupancy
     3,278       3,378  
Advertising and public relations
     750       626  
Postage, printing and supplies
     938       776  
Professional fees
     1,919       1,427  
FDIC assessments and other regulatory charges
     1,209       1,353  
Other
     5,250       3,855  
Total operating expenses
     43,061       39,050  
    Net income before income taxes
     28,063       24,438  
Income tax expense
     10,393       9,038  
Net income
     17,670       15,400  
Preferred stock dividends and discount accretion
     -       439  
Net income available to common shareholders
   $ 17,670     $ 14,961  
                 
Earnings per common share:
                
Basic
   $ .29     $ .25  
Diluted
     .29       .25  
Weighted average common shares outstanding:
                
Basic
     60,905       60,059  
Diluted
     60,909       60,061  
 
 
 

 

 
                   
UNITED COMMUNITY BANKS, INC.
                  
Consolidated Balance Sheet (Unaudited)
  
   
March 31,
    
December 31,
    
March 31,
  
(in thousands, except share and per share data)
  
2015
    
2014
    
2014
  
                   
ASSETS
                  
  Cash and due from banks
   $ 77,493     $ 77,180     $ 52,813  
  Interest-bearing deposits in banks
     82,269       89,074       110,529  
  Short-term investments
     25,902       26,401       49,999  
      Cash and cash equivalents
     185,664       192,655       213,341  
  Securities available for sale
     1,801,973       1,782,734       1,837,676  
  Securities held to maturity (fair value $413,550, $425,233 and $473,136)
     399,228       415,267       464,697  
  Mortgage loans held for sale
     15,723       13,737       10,933  
  Loans, net of unearned income
     4,787,689       4,672,119       4,355,708  
       Less allowance for loan losses
     (70,007 )     (71,619 )     (75,223 )
              Loans, net
     4,717,682       4,600,500       4,280,485  
  Assets covered by loss sharing agreements with the FDIC
     -       3,315       21,353  
  Premises and equipment, net
     159,036       159,390       161,540  
  Bank owned life insurance
     81,490       81,294       80,790  
  Accrued interest receivable
     20,154       20,103       18,572  
  Net deferred tax asset
     201,898       215,503       243,683  
  Derivative financial instruments
     20,291       20,599       21,563  
  Other assets
     60,764       61,889       43,604  
      Total assets
   $ 7,663,903     $ 7,566,986     $ 7,398,237  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Liabilities:
                        
  Deposits:
                        
       Demand
   $ 1,694,755     $ 1,574,317     $ 1,471,781  
       NOW
     1,420,956       1,504,887       1,392,863  
       Money market
     1,306,421       1,273,283       1,235,429  
       Savings
     312,013       292,308       270,910  
       Time:
                        
            Less than $100,000
     723,323       748,478       833,188  
            Greater than $100,000
     482,955       508,228       572,889  
       Brokered
     497,508       425,011       470,481  
                     Total deposits
     6,437,931       6,326,512       6,247,541  
   Repurchase agreements
     -       6,000       123,075  
   Federal Home Loan Bank advances
     270,125       270,125       50,125  
   Long-term debt
     113,901       129,865       129,865  
   Derivative financial instruments
     29,276       31,997       42,309  
   Unsettled securities purchases
     -       5,425       63,999  
   Accrued expenses and other liabilities
     48,965       57,485       37,593  
        Total liabilities
     6,900,198       6,827,409       6,694,507  
Shareholders’ equity:
                        
    Common stock, $1 par value; 100,000,000 shares authorized;
                        
        50,228,075, 50,178,605 and 50,011,094 shares issued and outstanding
     50,228       50,178       50,011  
    Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
                        
        10,080,787, 10,080,787 and 10,080,787 shares issued and outstanding
     10,081       10,081       10,081  
    Common stock issuable; 400,369, 357,983 and 237,763 shares
     5,895       5,168       3,840  
    Capital surplus
     1,081,110       1,080,508       1,091,696  
    Accumulated deficit
     (372,933 )     (387,568 )     (433,130 )
    Accumulated other comprehensive loss
     (10,676 )     (18,790 )     (18,768 )
        Total shareholders’ equity
     763,705       739,577       703,730  
        Total liabilities and shareholders’ equity
   $ 7,663,903     $ 7,566,986     $ 7,398,237  
 
 
 

 

 
                                     
UNITED COMMUNITY BANKS, INC.
  
Average Consolidated Balance Sheets and Net Interest Analysis
                          
For the Three Months Ended March 31,
  
    2015     2014  
   
Average
          
Avg.
    
Average
          
Avg.
  
(dollars in thousands, taxable equivalent)
  
Balance
    
Interest
    
Rate
    
Balance
    
Interest
    
Rate
  
Assets:
                                    
Interest-earning assets:
                                    
  Loans, net of unearned income (1)(2)
   $ 4,725,304     $ 49,865       4.28 %   $ 4,355,572     $ 47,868       4.46 %
  Taxable securities (3)
     2,186,756       11,900       2.18       2,300,316       11,419       1.99  
  Tax-exempt securities (1)(3)
     16,236       259       6.38       20,173       308       6.11  
  Federal funds sold and other interest-earning assets
     141,414       885       2.50       150,841       900       2.39  
                                                 
     Total interest-earning assets
     7,069,710       62,909       3.60       6,826,902       60,495       3.58  
Non-interest-earning assets:
                                                
  Allowance for loan losses
     (72,192 )                     (77,491 )                
  Cash and due from banks
     79,025                       62,054                  
  Premises and equipment
     159,502                       162,788                  
  Other assets (3)
     381,300                       410,175                  
     Total assets
   $ 7,617,345                     $ 7,384,428                  
                                                 
Liabilities and Shareholders’ Equity:
                                                
Interest-bearing liabilities:
                                                
  Interest-bearing deposits:
                                                
NOW
   $ 1,475,913       394       .11     $ 1,416,119       440       .13  
Money market
     1,466,913       673       .19       1,376,993       563       .17  
Savings
     300,344       20       .03       259,548       20       .03  
Time less than $100,000
     737,254       724       .40       877,695       1,013       .47  
Time greater than $100,000
     494,451       664       .54       578,190       918       .64  
Brokered time deposits
     273,327       (279 )     (.41 )     287,979       (160 )     (.23 )
       Total interest-bearing deposits
     4,748,202       2,196       .19       4,796,524       2,794       .24  
                                                 
Federal funds purchased and other borrowings
     36,145       98       1.10       112,583       840       3.03  
Federal Home Loan Bank advances
     239,181       392       .66       125,069       58       .19  
Long-term debt
     127,740       2,606       8.27       129,865       2,634       8.23  
      Total borrowed funds
     403,066       3,096       3.12       367,517       3,532       3.90  
                                                 
      Total interest-bearing liabilities
     5,151,268       5,292       .42       5,164,041       6,326       .50  
Non-interest-bearing liabilities:
                                                
  Non-interest-bearing deposits
     1,620,984                       1,400,619                  
  Other liabilities
     94,207                       116,667                  
     Total liabilities
     6,866,459                       6,681,327                  
Shareholders’ equity
     750,886                       703,101                  
     Total liabilities and shareholders’ equity
   $ 7,617,345                     $ 7,384,428                  
                                                 
Net interest revenue
           $ 57,617                     $ 54,169          
Net interest-rate spread
                     3.18 %                     3.08 %
                                                 
Net interest margin (4)
                     3.31 %                     3.21 %

(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 $10.8 million in 2015 and pretax unrealized losses of $4.63 million in 2014 are included in other assets for purposes of this presentation.
(4)
Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
 
 

 


 

Exhibit 99.2

 

ucbi.com | 1

 

 
 

 

ucbi.com | 2 Disclosures 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. 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 2014 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: core fee revenue, core operating expense, core earnings, tangible ucbi.com | 2

 

 
 

 

ucbi.com | 3 Highlights First Quarter 2015 (in millions) 1Q15 4Q14 1Q14 Net Income ($ in millions) + $17.7 $18.2 $15.4 EPS + $.29 $.30 $.25 ROA + .94% .96% .85% ROCE + 9.34% 9.60% 8.64% ucbi.com | 3 IMPROVING QUARTERLY RESULTS Net Interest Revenue ► $57.6 Million vs. $58.3 Million in 4Q14 and $54.2 Million in 1Q15 ● Loan growth of $116 million in 1Q15, up $432 million, or 10%, from 1Q14 ● Driven by community bank loan production of $314 million and specialized lending production of $108 million ● Margin of 3.31% vs. 3.31% in 4Q14 and 3.21% in 1Q14 o Balance sheet restructured late 2Q14 o Loan yield of 4.28%, down 9 bps from 4Q14; investment sec’s yield of 2.21%, down 4 bps from 4Q14 Core Fee Revenue ► $ 15.1 Million -Up $3.2 million from 1Q14 ● Gain on sales of SBA loans of $1.14 million vs. $.926 million in4Q14 and $0 in 1Q14 ● Mortgage revenue of $2.76 million, up $1.40 million from 4Q14

 

 
 

 

ucbi.com | 4 Highlights First Quarter 2015 ucbi.com | 4 IMPROVING QUARTERLY RESULTS Loan Growth ► Growth in Many Sectors ● Loan growth of $116 million, or 10% annualized ● Loan Production of $423 million vs. $401 million 4Q14 and $288 million year ago Core Transaction Deposits ► Up $206 Million from Fourth Quarter, or 22% Annualized ● Up $324 million from 1Q14, or 9% ● Represents 65.6% of total customer deposits Credit Quality ► Solid Improvement ● Provision of $1.8 million vs. $2.5 million 1Q14 ● Net charge-offs decline to .22% of total loans vs. .38% in 1Q14 ● NPAs were .26% of total assets vs. .26% in 4Q14 and .42% in 1Q14 ● Allowance 1.46% of total loans vs. 1.53% at 4Q14 and 1.73% at 1Q14 Capital Ratios ► Solid and Well-Capitalized ● Quarterly dividend of 5 cents per share ● Redeemed $15.5 million of Trust Preferred Securities ● Tier I Common to Risk Weighted Assets of 11.5%; Tangible Common to RWAs of 13.5% ● Tier I Risk Based Capital of 11.5% and Tier I Leverage of 8.7% Acquisition ► Executing Growth Strategy ● Announced merger with MoneyTree Corporation (First National Bank); regulatory approvals received; planned closing May 1 ● Announced merger with Palmetto Bancshares (The Palmetto Bank) onApril 22; expect closing in fourth quarter

 

 
 

 

ucbi.com | 5 1Q15 4Q14 1Q14 Salaries & Employee Benefits 26,362$ 185$ 2,151$ Communications & Equipment 3,271 118 32 Occupancy 3,278 (170) (100) FDIC Assessment 1,209 326 (144) Advertising & Public Relations 750 (52) 124 Postage, Printing & Supplies 938 (148) 162 Professional Fees 1,919 (115) 492 Other Expense 4,464 (34) 725 Core Operating Expenses 42,191 110 3,442 Non-Core (1) 870 1,032 569 Reported GAAP 43,061$ 1,142$ 4,011$ 1Q15 4Q14 1Q14 Efficiency Ratio 59.15 % 57.47 % 59.05 % Variance - Incr/(Decr) 1Q15 4Q14 1Q14 Overdraft Fees 2,598$ (338)$ (322)$ Interchange Fees 3,638 (339) 107 Other Service Charges 1,379 (154) (68) Total Service Charges and Fees 7,615 (831) (283) Mortgage Loan & Related Fees 2,755 644 1,401 Brokerage Fees 1,551 375 374 Gains from SBA Loan Sales 1,141 215 1,141 Other 2,058 164 557 Total Fee Revenue - Core 15,120 567 3,190 Non-Core (1) 562 292 316 Reported - GAAP 15,682$ 859$ 3,506$ Variance - 1Q15 4Q14 1Q14 Net Interest Revenue 57,617$ (715)$ 3,448$ Fee Revenue 15,120 505 3,190 Gross Revenue 72,737 (210) 6,638 Operating Expense (Excl OREO) 42,191 (48) 3,442 Pre-Tax, Pre-Credit (Core) 30,546$ (258)$ 3,196$ Net Interest Margin 3.31 % - % .10 % Variance - Incr/(Decr) Trends –Core Earnings, Fee Revenue, and Expenses $ in Thousands $ in Thousands (1) Includes securities gains / losses, charges on prepayment of borrowings, and gains / losses on deferred compensation plan assets (2) Includes foreclosed property costs, severance costs, reversal of previously established litigation reserve, reimbursement of claimed interest for the initial period of the loss sharing agreements, charge for settlement of loss sharing agreements and gains / losses on deferred compensation plan liabilities. $ in Thousands Core Earnings $30.5 Million Up $3.2 million from 1Q14 and Down $258 K from 4Q14 Core Operating Expenses Millions Core Earnings Core Fee Revenue ucbi.com | 5

 

 
 

 

ucbi.com | 6 Key Drivers of Net Interest Revenue / Margin KEY DRIVERS OF NIR NET INTEREST REVENUE & MARGIN Loan / Securities Pricing Deposit Pricing (excl. brokered) Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s • CD pricing reflects the quarter-average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter • CD pricing reflects the quarter-average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter CDs MMDA NOW Millions ucbi.com | 6

 

 
 

 

ucbi.com | 7 Balance Sheet Growth – New Loans Funded and Advances (1) CATEGORY CATEGORY 1Q15 4Q14 1Q14 Banks: 1Q15 4Q14 1Q14 Commercial C & I 107.5$ 115.9$ 74.7$ Atlanta 98.0$ 91.6$ 86.1$ Owner Occupied CRE 54.2 56.0 48.9 Coastal Georgia 43.4 34.0 31.1 Income Producing CRE 68.3 45.9 41.1 N. Georgia 47.0 54.9 41.3 Commercial Constr. 9.5 6.0 1.9 North Carolina 19.6 33.2 16.9 Total Commercial 239.5 223.8 166.6 Tennessee 15.0 24.1 9.6 Residential Mortgage 25.5 32.7 15.2 Gainesville 12.3 14.3 8.9 Residential HELOC 29.4 37.0 30.1 South Carolina (2) 112.0 96.6 60.3 Residential Construction 37.8 40.8 29.6 Other (Indirect Auto) 75.5 52.4 33.3 Consumer 90.6 66.8 46.0 Total Markets 422.8$ 401.1$ 287.5$ Total Categories 422.8$ 401.1$ 287.5$ 1Q15 4Q14 1Q14 Asset-based Lending 8.9$ 1.4$ -$ Commercial RE 36.0 17.1 25.0 Healthcare 39.5 53.7 19.8 Middle Market 16.7 11.0 13.0 SBA 7.3 4.8 - Total Special'd Lending 108.4$ 88.0$ 57.8$ (1) Represents new loans funded and net loan advances (net of payments on lines of credit) (2) Includes Specialized Lending New Loans Funded and Advances Specialized Lending (Included in South Carolina) $ in Millions MARKET MARKET ucbi.com | 7

 

 
 

 

ucbi.com | 8 Loan Growth 2011 2012 2013 2014 1Q15 LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 428$ 458$ 472$ 710$ 716$ Owner Occ'd 1,112 1,131 1,134 1,163 1,167 Total C & I 1,540 1,589 1,606 1,873 1,883 Income Prod CRE 710 682 623 599 636 Comm Constr 164 155 149 196 230 Total Comm 2,414 2,426 2,378 2,668 2,749 Resi Mortgage 835 829 875 866 864 HELOC 300 385 441 466 465 Resi Constr 448 382 328 299 291 Consum / Install 113 115 111 104 103 Indirect Auto - 38 196 269 316 Total Loans 4,110$ 4,175$ 4,329$ 4,672$ 4,788$ 2011 2012 2013 2014 1Q15 LOANS - BY REGION North Georgia 1,426$ 1,364$ 1,240$ 1,163$ 1,150$ Atlanta MSA 1,220 1,250 1,275 1,282 1,296 North Carolina 597 579 572 553 539 Coastal Georgia 346 400 423 456 476 Gainesville MSA 265 261 255 257 255 East Tennessee 256 283 280 280 281 So Carolina/Specialized - - 88 412 475 Indirect Auto - 38 196 269 316 Total Loans 4,110$ 4,175$ 4,329$ 4,672$ 4,788$ Millions Millions ucbi.com | 8

 

 
 

 

ucbi.com | 9 Balance Sheet Growth – Customer Deposit Mix 2011 2012 2013 2014 1Q15 TOTAL DEPOSIT MIX Non-Interest Bearing Core Tx Demand Deposit 955$ 1,188$ 1,311$ 1,471$ 1,602$ Interest Bearing Core Tx NOW 719 654 659 668 693 MMDA 1,030 1,145 1,218 1,259 1,291 Savings 198 226 250 291 310 Total Interest Bearing Core Dep 1,947 2,025 2,127 2,218 2,294 Total Core Deposits 2,902 3,213 3,438 3,689 3,896 Time (Customer) < $100,000 1,121 1,050 888 744 718 > $100,000 1,012 674 557 479 452 Total Time Dep 2,133 1,724 1,445 1,223 1,170 Public Funds 884 770 894 989 874 Brokered 179 245 412 425 498 Total Deposits 6,098$ 5,952$ 6,189$ 6,326$ 6,438$ 2011 2012 2013 2014 1Q15 CORE DEPOSIT GROWTH - CATETORY & MARKET Demand Deposit 185$ 232$ 123$ 161$ 130$ MMDA 150 115 73 41 32 Savings 15 29 24 41 19 NOW (84) (65) 4 9 25 Growth by Category 266$ 311$ 224$ 252$ 206$ Atlanta 102 160 75 84 82 N. Georgia 81 41 62 90 61 North Carolina 27 47 42 35 7 Coastal Georgia 20 38 2 22 12 Tennessee 21 9 4 8 15 Gainesville 15 16 19 10 27 South Carolina - - 20 3 2 Growth by Market 266$ 311$ 224$ 252$ 206$ $ in Millions $ in Millions ucbi.com | 9

 

 
 

 

ucbi.com | 10 Earnings per Share to Return on Assets EARNINGS PER SHARE RETURN ON ASSETS ucbi.com | 10

 

 
 

 

ucbi.com | 11 Capital Ratios (1) ucbi.com | 11 HOLDING COMPANY Well-Cap 1Q15 4Q14 3Q14 2Q14 1Q14 Tier I RBC 6% 11.5% 12.1% 12.1% 11.8% 11.1% Total RBC 10 12.8 13.3 13.3 13.0 12.4 Leverage 5 8.7 8.7 8.7 8.3 8.0 Tier I Common RBC 11.5 11.1 11.0 10.7 10.1 Tangible Comm to Assets 9.8 9.7 9.8 9.6 9.2 Tangible Equity to Assets 9.8 9.7 9.8 9.6 9.5 BANK Well-Cap 1Q15 4Q14 3Q14 2Q14 1Q14 Tier I RBC 6% 11.8% 12.9% 12.6% 13.4% 12.6% Total RBC 10 13.1 14.1 13.8 14.6 13.9 Leverage 5 8.9 9.3 9.1 9.4 9.1 (1) March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.

 

 
 

 

ucbi.com | 12 1Q15 4Q14 3Q14 2Q14 1Q14 CORE FEE REVENUE Core fee revenue 15,120$ 14,553$ 14,419$ 13,938$ 11,930$ Securities gains, net 1,539 208 11 4,435 217 Losses on prepayment of borrowings (1,038) - - (4,446) Mark to market on deferred compensation plan assets 61 62 (18) 216 29 Fee revenue (GAAP) 15,682$ 14,823$ 14,412$ 14,143$ 12,176$ CORE OPERATING EXPENSE Core operating expense 42,191$ 42,081$ 41,097$ 40,131$ 38,749$ Foreclosed property expense 96 131 285 102 116 Severance 23 353 - 83 156 Reversal of litigation reserve - (1,200) - - - Loss share settlements 690 492 - - - Mark to market on deferred compensation plan liability 61 62 (18) 216 29 Operating expense (GAAP) 43,061$ 41,919$ 41,364$ 40,532$ 39,050$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 9.82 % 9.72 % 9.83 % 9.58 % 9.22 % Effect of preferred equity - - - - .28 Tangible equity to tangible assets 9.82 9.72 9.83 9.58 9.50 Effect of goodwill and other intangibles .04 .04 .02 .03 .02 Equity to assets (GAAP) 9.86 % 9.76 % 9.85 % 9.61 % 9.52 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS (1) Tangible common equity to risk-weighted assets 13.53 % 13.82 % 14.10 % 13.92 % 13.63 % Effect of preferred equity - - - - - Tangible equity to risk weighted assets 13.53 13.82 14.10 13.92 13.63 Effect of deferred tax limitation (2.86) (3.11) (3.39) (3.74) (3.92) Effect of other comprehensive income .19 .35 .34 .53 .36 Effect of trust preferred .67 1.00 1.02 1.04 1.03 Tier I capital ratio (Regulatory) 11.53 % 12.06 % 12.07 % 11.75 % 11.10 % Operating Earnings to GAAP Earnings Reconciliation Non-GAAP Reconciliation Tables $ in Thousands ucbi.com | 12 (1) March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.