United Community Banks (UCB) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

For Immediate Release

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2265
Rex_Schuette@ucbi.com

UNITED COMMUNITY BANKS, INC. REPORTS
17% GAIN IN DILUTED EARNINGS PER SHARE
FOR SECOND QUARTER 2006

HIGHLIGHTS:

• Record Second Quarter Earnings

Diluted Earnings per Share of $.41 — Up 17%
Net Income of $17 Million — Up 23%
Return on Tangible Equity of 17.68%
Total Assets Rise to $6.3 Billion

• Strong Loan Demand and Rise in Net Interest Margin Drove Performance

BLAIRSVILLE, GA, July 25, 2006 — United Community Banks, Inc. (Nasdaq: UCBI), Georgia’s third-largest bank holding company, today announced record financial results for the second quarter of 2006. Compared with the second quarter of 2005, the company achieved a 16% increase in total revenue, a 23% rise in net income and a 17% gain in diluted earnings per share.

For the second quarter of 2006, net income was $16.9 million compared with $13.8 million a year earlier. Diluted earnings per share increased to $.41 from $.35 a year ago. Total revenue, on a taxable equivalent basis, was $70.6 million compared with $60.6 million for the second quarter of 2005. Return on tangible equity was 17.68% and return on assets was 1.10%, compared with 19.21% and 1.03%, respectively, a year ago.

“Strong demand for loans and deposits continued across all markets,” said Jimmy Tallent, President and Chief Executive Officer of United Community Banks. “Loans increased $226 million during the second quarter, or 20% on an annualized basis, and helped drive the increase in net interest revenue. We more than funded our loan growth by adding $228 million of deposits this quarter — more than half were core deposits. The strong loan growth pushed total assets to $6.3 billion, a 14% increase from a year ago. Our net interest margin was 4.34%, up 22 basis points from a year ago and up 1 basis point from last quarter, as rising short-term interest rates continued to positively affect our slightly asset-sensitive balance sheet.”

For the first six months of 2006, net income increased $5.8 million to $33.0 million, up 21% from $27.2 million for the first half of 2005. Diluted earnings per share of $.80 increased $.11, or 16%, from $.69 for the first six months of 2005. Total revenue, on a taxable equivalent basis, was $138.6 million, up 19% from $116.7 million a year ago. Return on tangible equity was 17.67% and return on assets was 1.10%, compared with 19.52% and 1.04%, respectively, a year ago.

At June 30, 2006, total loans were $4.8 billion, up $737 million, or 18%, from a year ago. All of the loan growth was organic. “Organic growth, with an uncompromising focus on sound credit quality, is at the core of our balanced growth strategy and is further supported by our focused de novo expansion,” Tallent said. “We find the right people and build around them, usually adding two to four new offices a year. The most recent example of this strategy was the announcement yesterday that we will open our 25th community bank in Cleveland, Tennessee, along the high-growth I-75 corridor. Led by veteran Cleveland bankers Mickey Torbett and DeWayne Morrow, our new bank downtown will begin full-service operations as United Community Bank — Cleveland later this month with a total of ten seasoned, local bankers. I am excited to welcome this fine team to our family of United banks and look forward to their growth opportunities in this attractive market.”

Tallent continued, “De novo expansion will continue to allow us to open offices in selective new markets and expand our franchise. Earlier in the year, we opened three offices in Georgia — a

second location in Savannah, a fifth location in Hall County, and a commercial loan office in Jasper, just north of Atlanta in Pickens County. Earlier this quarter, we announced an agreement to acquire two banking offices in Sylva and Bryson City, North Carolina and we expect the transaction to close in September. Both of these offices are in markets where we already have a presence and a deep knowledge of the banking environment.”

“The highest level of customer service continues to be our distinguishing characteristic,” Tallent said. “Our relentless focus on service has generated customer satisfaction scores that continue to exceed 90%, well above the comparable industry average of 75%. This personal, caring brand of service is invaluable in building deposits through customer referrals while also maintaining and growing our long-term relationships with existing customers.”

For the second quarter, taxable equivalent net interest revenue of $62.3 million was up $11.1 million, or 22%, from the second quarter of 2005. Taxable equivalent net interest margin for the second quarter was 4.34%, compared with 4.12% a year ago and 4.33% for the first quarter of 2006. “Our balance sheet has remained slightly asset sensitive, which allowed us to benefit from the rise in interest rates as reflected in the expansion of our margin throughout 2005 and into the first half of 2006,” Tallent said.

The second quarter provision for loan losses was $3.7 million, which increased $900,000 from a year earlier and $200,000 from the first quarter of 2006. Annualized net charge-offs to average loans were 9 basis points for the second quarter, compared with 11 basis points for the first quarter of 2006 and 14 basis points for the second quarter of 2005. At quarter-end, non-performing assets totaled $8.8 million compared with $8.4 million at the end of the first quarter of 2006 and $13.5 million a year ago. Non-performing assets as a percentage of total assets were 14 basis points at quarter-end, unchanged from the first quarter of 2006 and down from the 24 basis points at June 30, 2005. “Strong credit quality, rooted with our guiding principle of securing loans with hard assets, is essential to our balanced growth strategy and overall success,”
Tallent said.

Fee revenue of $12.0 million was down slightly from $12.2 million for the second quarter of 2005, primarily due to $530,000 in gains from the sale of two banking offices in the second quarter of 2005. Also impacting fee revenue this quarter was $280,000 in charges for the prepayment of Federal Home Loan Bank advances that were part of our balance sheet management activities. Service charges and fees on deposit accounts increased $548,000 to $6.8 million, primarily due to growth in transactions and new accounts resulting from core deposit programs and higher ATM and debit card usage fees. Mortgage fees, consulting fees and brokerage fees remain substantially unchanged from a year ago.

Operating expenses of $43.5 million increased $4.7 million, or 12%, from the second quarter of 2005. Salaries and employee benefit costs of $28.3 million increased $3.0 million, or 12%, from the second quarter of 2005 due to the increase in staff to support our significant expansion efforts and business growth. Communications and equipment expenses increased $616,000 to $3.7 million due to further investments and upgrades in technology equipment to support business growth and additional banking offices. Advertising and public relations expense rose $249,000 to $1.9 million reflecting the costs of initiatives to raise core deposits and efforts to generate brand awareness in new markets. Occupancy expense increased $198,000 to $2.9 million reflecting the increase in cost to operate additional banking offices added through de novo expansion. The increase in other operating expense was primarily due to write-downs on foreclosed real estate properties and higher costs to support business growth.

“We had a positive operating leverage of four percent this quarter,” Tallent said. “Also, our operating efficiency ratio of 58.53% was within our long-term efficiency goal of 58% to 60%. This reflects the continued strength of our existing franchise, strong revenue growth and disciplined expense controls, which more than offset the cost of reinvesting for the future through our de novo expansion efforts,” Tallent said.

“Our outlook for the balance of 2006 is for earnings per share growth at the upper-end of our long-term goal of 12% to 15%,” Tallent said. “We anticipate core loan growth to be slightly above our targeted range of 10% to 14%. Our net interest margin has benefited from rising short-term interest rates; however, we expect the margin could decline slightly in the second half of

2006, due to further pricing competition for deposits. This outlook assumes a stable economic environment and continued strong credit quality.”

“Our results for the first half of 2006 are leading towards another year of strong growth and superior operating performance,” Tallent stated. “We are committed to excellent customer service while maintaining solid credit quality as we continue our efforts to build shareholder value through our balanced growth strategy of strong internal growth, complemented by selective de novo and merger expansion.”

Conference Call

United Community Banks will hold a conference call on Tuesday, July 25, 2006, at 11 a.m. ET to discuss the contents of this news release, as well as business highlights for the quarter and the financial outlook for the remainder of 2006. The telephone number for the conference call is (866) 700-7441 and the pass code is “UCBI.” The conference call will also be available by web cast within the Investor Relations section of the company’s web site at www.ucbi.com.

About United Community Banks, Inc.

Headquartered in Blairsville, United Community Banks is the third-largest bank holding company in Georgia. United Community Banks has assets of $6.3 billion and operates 25 community banks with 94 banking offices located throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee. The company specializes in providing personalized community banking services to individuals and small to mid-size businesses. United Community Banks also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United Community Banks common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at the company’s web site at www.ucbi.com.

Safe Harbor

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance

involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” on page 4 of United Community Banks, Inc.’s annual report filed on Form 10-K with the Securities and Exchange Commission.

(Tables Follow)

UNITED COMMUNITY BANKS, INC.
Selected Financial Information

																Second
	2006						2005									Quarter			For the Six						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second			2006-2005			Months Ended						2006-2005
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2006			2005			Change
INCOME SUMMARY
Interest revenue	$	111,728		$	102,797		$	95,465		$	89,003		$	80,701					$	214,525		$	154,350
Interest expense		49,407			43,065			38,576			34,033			29,450						92,472			54,817
Net interest revenue		62,321			59,732			56,889			54,970			51,251			22	%		122,053			99,533			23	%
Provision for loan losses		3,700			3,500			3,500			3,400			2,800						7,200			5,200
Fee revenue		11,976			11,758			11,373			12,396			12,179			(2	)		23,734			22,379			6
Total revenue		70,597			67,990			64,762			63,966			60,630			16			138,587			116,712			19
Operating expenses		43,483			42,222			40,520			41,294			38,808			12			85,705			73,587			16
Income before taxes		27,114			25,768			24,242			22,672			21,822			24			52,882			43,125			23
Income taxes		10,185			9,729			9,012			8,374			8,049						19,914			15,911
Net income	$	16,929		$	16,039		$	15,230		$	14,298		$	13,773			23		$	32,968		$	27,214			21
PERFORMANCE MEASURES
Per common share:
Basic earnings	$	.42		$	.40		$	.39		$	.37		$	.36			17		$	.82		$	.71			15
Diluted earnings		.41			.39			.38			.36			.35			17			.80			.69			16
Cash dividends declared		.08			.08			.07			.07			.07			14			.16			.14			14
Book value		12.34			12.09			11.80			11.04			10.86			14			12.34			10.86			14
Tangible book value(2)		9.50			9.25			8.94			8.05			7.85			21			9.50			7.85			21
Key performance ratios:
Return on tangible equity(1)(2)(3)		17.68	%		17.66	%		18.20	%		18.90	%		19.21	%					17.67	%		19.52	%
Return on equity(1)(3)		13.41			13.25			13.30			13.42			13.46						13.33			13.57
Return on assets(3)		1.10			1.09			1.05			1.01			1.03						1.10			1.04
Net interest margin(3)		4.34			4.33			4.20			4.17			4.12						4.34			4.09
Efficiency ratio		58.53			59.06			58.80			61.16			61.18						58.79			60.36
Dividend payout ratio		19.05			20.00			17.95			18.92			19.44						19.51			19.72
Equity to assets		7.95			8.04			7.69			7.46			7.65						7.99			7.68
Tangible equity to assets(2)		6.22			6.24			5.82			5.53			5.62						6.23			5.60
ASSET QUALITY
Allowance for loan losses	$	58,508		$	55,850		$	53,595		$	51,888		$	49,873					$	58,508		$	49,873
Non-performing assets		8,805			8,367			12,995			13,565			13,495						8,805			13,495
Net charge-offs		1,042			1,245			1,793			1,385			1,380						2,287			2,523
Allowance for loan losses to loans		1.22	%		1.22	%		1.22	%		1.22	%		1.22	%					1.22	%		1.22	%
Non-performing assets to total assets		.14			.14			.22			.24			.24						.14			.24
Net charge-offs to average loans(3)		.09			.11			.16			.13			.14						.10			.13
AVERAGE BALANCES
Loans	$	4,690,196		$	4,505,494		$	4,328,613		$	4,169,170		$	3,942,077			19		$	4,598,355		$	3,870,177			19
Investment securities		1,039,707			1,038,683			1,004,966			1,008,687			996,096			4			1,039,198			971,283			7
Earning assets		5,758,697			5,574,712			5,383,096			5,239,195			4,986,339			15			5,667,213			4,903,610			16
Total assets		6,159,152			5,960,801			5,769,632			5,608,158			5,338,398			15			6,060,526			5,251,913			15
Deposits		4,842,389			4,613,810			4,354,275			4,078,437			3,853,884			26			4,728,731			3,786,276			25
Stockholders’ equity		489,821			478,960			443,746			418,459			408,352			20			484,420			403,286			20
Common shares outstanding:
Basic		40,156			40,088			39,084			38,345			38,270						40,122			38,234
Diluted		41,328			41,190			40,379			39,670			39,436						41,259			39,412
AT PERIOD END
Loans	$	4,810,277		$	4,584,155		$	4,398,286		$	4,254,051		$	4,072,811			18		$	4,810,277		$	4,072,811			18
Investment securities		974,524			983,846			990,687			945,922			990,500			(2	)		974,524			990,500			(2	)
Earning assets		5,862,614			5,633,381			5,470,718			5,302,532			5,161,067			14			5,862,614			5,161,067			14
Total assets		6,331,136			6,070,596			5,865,756			5,709,666			5,540,242			14			6,331,136			5,540,242			14
Deposits		4,976,650			4,748,438			4,477,600			4,196,369			3,959,226			26			4,976,650			3,959,226			26
Stockholders’ equity		496,297			485,414			472,686			424,000			415,994			19			496,297			415,994			19
Common shares outstanding		40,179			40,119			40,020			38,383			38,283						40,179			38,283

(1)	Net income available to common stockholders, which excludes 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.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income(unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in thousands, except per share data)	2006		2005			2006			2005
Interest revenue:
Loans, including fees	$	99,080	$	69,446		$	189,445		$	132,913
Investment securities:
Taxable		11,521		10,190			22,839			19,204
Tax exempt		509		528			1,023			1,053
Federal funds sold and deposits in banks		162		150			320			409
Total interest revenue		111,272		80,314			213,627			153,579
Interest expense:
Deposits:
Demand		8,956		4,379			16,143			7,906
Savings		226		174			454			342
Time		29,599		15,019			54,985			28,027
Total deposit interest expense		38,781		19,572			71,582			36,275
Federal funds purchased, repurchase agreements, & other short-term borrowings		2,078		1,121			3,554			2,006
Federal Home Loan Bank advances		6,380		6,565			13,009			12,222
Long-term debt		2,168		2,192			4,327			4,314
Total interest expense		49,407		29,450			92,472			54,817
Net interest revenue		61,865		50,864			121,155			98,762
Provision for loan losses		3,700		2,800			7,200			5,200
Net interest revenue after provision for loan losses		58,165		48,064			113,955			93,562
Fee revenue:
Service charges and fees		6,828		6,280			13,181			11,894
Mortgage loan and other related fees		1,708		1,742			3,221			3,225
Consulting fees		1,572		1,685			3,156			3,167
Brokerage fees		796		768			1,646			1,210
Securities losses, net		—		(2	)		(3	)		(2	)
Other		1,072		1,706			2,533			2,885
Total fee revenue		11,976		12,179			23,734			22,379
Total revenue		70,141		60,243			137,689			115,941
Operating expenses:
Salaries and employee benefits		28,307		25,274			55,950			47,509
Communications and equipment		3,731		3,115			7,107			6,097
Occupancy		2,916		2,718			5,848			5,386
Advertising and public relations		1,948		1,699			3,836			3,062
Postage, printing and supplies		1,289		1,369			2,805			2,720
Professional fees		1,069		1,071			2,230			2,109
Amortization of intangibles		503		503			1,006			1,006
Other		3,720		3,059			6,923			5,698
Total operating expenses		43,483		38,808			85,705			73,587
Income before income taxes		26,658		21,435			51,984			42,354
Income taxes		9,729		7,662			19,016			15,140
Net income	$	16,929	$	13,773		$	32,968		$	27,214
Net income available to common stockholders	$	16,924	$	13,767		$	32,958		$	27,201
Earnings per common share:
Basic	$	.42	$	.36		$	.82		$	.71
Diluted		.41		.35			.80			.69
Weighted average common shares outstanding:
Basic		40,156		38,270			40,122			38,234
Diluted		41,328		39,436			41,259			39,412

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet

	June 30,			December 31,			June 30,
(in thousands, except share and per share data)	2006			2005			2005
	(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	159,954		$	121,963		$	117,478
Interest-bearing deposits in banks		21,948			20,607			17,451
Cash and cash equivalents		181,902			142,570			134,929
Securities available for sale		974,524			990,687			990,500
Mortgage loans held for sale		24,000			22,335			34,095
Loans, net of unearned income		4,810,277			4,398,286			4,072,811
Less allowance for loan losses		58,508			53,595			49,873
Loans, net		4,751,769			4,344,691			4,022,938
Premises and equipment, net		124,018			112,887			105,469
Accrued interest receivable		44,187			37,197			31,909
Goodwill and other intangible assets		117,646			118,651			119,617
Other assets		113,090			96,738			100,785
Total assets	$	6,331,136		$	5,865,756		$	5,540,242
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	662,463		$	602,525		$	590,306
Interest-bearing demand		1,305,479			1,264,947			1,141,115
Savings		173,985			175,453			177,822
Time:
Less than $100,000		1,388,009			1,218,277			1,041,680
Greater than $100,000		1,106,359			895,466			696,941
Brokered		340,355			320,932			311,362
Total deposits		4,976,650			4,477,600			3,959,226
Federal funds purchased, repurchase agreements, & other short-term borrowings		249,552			122,881			219,218
Federal Home Loan Bank advances		458,587			635,616			800,316
Long-term debt		111,869			111,869			111,869
Accrued expenses and other liabilities		38,181			45,104			33,619
Total liabilities		5,834,839			5,393,070			5,124,248
Shareholders’ equity:
Preferred stock, $1 par value; $10 stated value; 10,000,000 shares authorized; 32,200, 32,200 and 37,200 shares issued and outstanding		322			322			372
Common stock, $1 par value; 100,000,000 shares authorized; 40,178,533, 40,019,853 and 38,407,874 shares issued		40,179			40,020			38,408
Common stock issuable; 19,712 and 9,948 shares as of June 30, 2006 and December 31, 2005, respectively		544			271			—
Capital surplus		197,235			193,355			154,480
Retained earnings		277,086			250,563			226,546
Treasury stock; 124,665 shares as of June 30, 2005, at cost		—			—			(2,517	)
Accumulated other comprehensive loss		(19,069	)		(11,845	)		(1,295	)
Total shareholders’ equity		496,297			472,686			415,994
Total liabilities and shareholders’ equity	$	6,331,136		$	5,865,756		$	5,540,242

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,

	2006								2005
	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)	$	4,690,196		$	98,965		8.46	%	$	3,942,077		$	69,130		7.03	%
Taxable securities(3)		991,701			11,521		4.65			946,543			10,190		4.31
Tax-exempt securities(1) (3)		48,006			837		6.98			49,553			869		7.01
Federal funds sold and other interest-earning assets		28,794			405		5.63			48,166			512		4.25
Total interest-earning assets		5,758,697			111,728		7.78			4,986,339			80,701		6.49
Non-interest-earning assets:
Allowance for loan losses		(57,654	)							(49,576	)
Cash and due from banks		129,389								94,488
Premises and equipment		120,870								103,439
Other assets(3)		207,850								203,708
Total assets	$	6,159,152							$	5,338,398
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts	$	1,282,798			8,956		2.80		$	1,109,861			4,379		1.58
Savings deposits		174,533			226		.52			176,624			174		.40
Time deposits less than $100,000		1,344,861			14,066		4.20			1,025,236			7,307		2.86
Time deposits greater than $100,000		1,061,249			12,147		4.59			661,214			5,515		3.35
Brokered deposits		327,962			3,386		4.14			311,933			2,197		2.83
Total interest-bearing deposits		4,191,403			38,781		3.71			3,284,868			19,572		2.39
Federal funds purchased & other borrowings		165,563			2,078		5.03			149,438			1,121		3.01
Federal Home Loan Bank advances		506,531			6,380		5.05			785,523			6,565		3.35
Long-term debt		111,869			2,168		7.77			111,868			2,192		7.86
Total borrowed funds		783,963			10,626		5.44			1,046,829			9,878		3.78
Total interest-bearing liabilities		4,975,366			49,407		3.98			4,331,697			29,450		2.73
Non-interest-bearing liabilities:
Non-interest-bearing deposits		650,986								569,016
Other liabilities		42,979								29,333
Total liabilities		5,669,331								4,930,046
Stockholders’ equity		489,821								408,352
Total liabilities and stockholders’ equity	$	6,159,152							$	5,338,398
Net interest revenue				$	62,321							$	51,251
Net interest-rate spread							3.80	%							3.76	%
Net interest margin(4)							4.34	%							4.12	%

(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 tax rate and the federal tax adjusted state tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized losses of $21.6 million and $782,000 in 2006 and 2005, respectively, 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 (continued)
For the Six Months Ended June 30,

	2006								2005
	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)	$	4,598,355		$	189,219		8.30	%	$	3,870,177		$	132,266		6.89	%
Taxable securities(3)		990,698			22,839		4.61			921,564			19,204		4.17
Tax-exempt securities(1) (3)		48,500			1,683		6.94			49,719			1,733		6.97
Federal funds sold and other interest-earning assets		29,660			784		5.29			62,150			1,147		3.69
Total interest-earning assets		5,667,213			214,525		7.63			4,903,610			154,350		6.34
Non-interest-earning assets:
Allowance for loan losses		(56,247	)							(48,869	)
Cash and due from banks		125,957								93,446
Premises and equipment		118,245								102,927
Other assets(3)		205,358								200,799
Total assets	$	6,060,526							$	5,251,913
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Transaction accounts	$	1,264,373		$	16,143		2.57		$	1,092,181		$	7,906		1.46
Savings deposits		175,161			454		.52			175,033			342		.39
Time deposits less than $100,000		1,307,676			26,101		4.03			1,010,395			13,769		2.75
Time deposits greater than $100,000		1,020,682			22,556		4.46			626,918			9,884		3.18
Brokered deposits		321,562			6,328		3.97			329,396			4,374		2.68
Total interest-bearing deposits		4,089,454			71,582		3.53			3,233,923			36,275		2.26
Federal funds purchased & other borrowings		147,185			3,554		4.87			144,533			2,006		2.80
Federal Home Loan Bank advances		546,405			13,009		4.80			778,160			12,222		3.17
Long-term debt		111,868			4,327		7.80			111,868			4,314		7.78
Total borrowed funds		805,458			20,890		5.23			1,034,561			18,542		3.61
Total interest-bearing liabilities		4,894,912			92,472		3.81			4,268,484			54,817		2.59
Non-interest-bearing liabilities:
Non-interest-bearing deposits		639,276								552,354
Other liabilities		41,918								27,789
Total liabilities		5,576,106								4,848,627
Stockholders’ equity		484,420								403,286
Total liabilities and stockholders’ equity	$	6,060,526							$	5,251,913
Net interest revenue				$	122,053							$	99,533
Net interest-rate spread							3.82	%							3.75	%
Net interest margin(4)							4.34	%							4.09	%

(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 tax rate and the federal tax adjusted state tax rate.
(2)	Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued.
(3)	Securities available for sale are shown at amortized cost. Pretax unrealized losses of $17.9 million in 2006 and pretax unrealized gains of $1.1 million in 2005 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.