UNITED COMMUNITY BANKS INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - UNITED COMMUNITY BANKS INC	t82102_8k.htm
EX-99.2 - EXHIBIT 99.2 - UNITED COMMUNITY BANKS INC	t82102_ex99-2.htm

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

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.”

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.”

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.

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.”

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.

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2014 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

# # #


UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
																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.

Attached files

UNITED COMMUNITY BANKS INC Reports

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