United Community Banks 8K Results of Operations and Financial Condition | UCB 22 Jul 15

Exhibit 99.2

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 OPERATING INCOME OF $20.0 MILLION FOR SECOND QUARTER 2015,

UP 22 PERCENT FROM A YEAR AGO

	·	Operating earnings per diluted share of 32 cents, up 19 percent from a year ago
	·	Completed merger with MoneyTree Corporation and its wholly owned subsidiary, First National Bank, on May 1st
	·	Loans up $142 million from first quarter, or 12 percent annualized, excluding loans acquired in the merger
	·	Core transaction deposits up $109 million, or 11 percent annualized, excluding deposits acquired in the merger
	·	Net interest margin holds steady at 3.30 percent
	·	Regulatory approvals received for acquisition of Palmetto Bancshares

BLAIRSVILLE, GA – July 22, 2015 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported net operating income of $20.0 million for the second quarter of 2015, up 22 percent from a year ago. Operating earnings per diluted share was 32 cents, up 19 percent from a year ago. The increase reflects strong loan and core deposit growth, a stable net interest margin, growth in fee revenue and a lower provision for credit losses.

Operating earnings and diluted operating earnings per share exclude the effects of merger-related charges which are not considered part of ongoing operations. Including those charges, net income was $17.8 million for the second quarter, or 28 cents per diluted share. For the first six months, United reported net income of $35.5 million, or 57 cents per diluted share. Excluding merger related charges, net operating income was $37.6 million, or 61 cents per diluted share.

“Our second quarter financial performance was outstanding by every measure,” said Jimmy Tallent, chairman and chief executive officer. “I’m especially proud to report that we achieved our goal for a one percent return on assets, excluding merger-related charges.

“We had solid loan growth combined with a steady net interest margin,” Tallent continued. “Strong recoveries of previously charged-off loans drove our provision for credit losses down to half the first quarter level. Fee revenue was up significantly, with strong growth in our mortgage business and gains from our SBA lending business.

“Second quarter net loan growth of $142 million, excluding the merger with MoneyTree Corporation and its wholly owned subsidiary, First National Bank (“FNB”), was driven by strong loan production of $526 million across all United markets. Our community banks originated $296 million of loan production while our specialized lending area, which includes health care, corporate, SBA, asset-based, middle market and commercial real estate lending, produced $152 million. Core deposit growth was another contributing factor with a linked-quarter increase of $109 million, or 11 percent annualized, excluding deposits acquired in the merger. Increased demand deposits in our Atlanta and western North Carolina markets drove over half of this growth.”

Second quarter taxable equivalent net interest revenue totaled $61.3 million, up $3.70 million from the first quarter and up $6.37 million from the second quarter of 2014. The acquisition of FNB added just over $2.0 million to second quarter net interest revenue. The taxable equivalent net interest margin of 3.30 percent held steady with the first quarter and was up 9 basis points from a year ago. Along with loan growth, this drove the remainder of the increase in net interest revenue.

At $900 thousand, the second quarter provision for credit losses was half of the amount from the first quarter and down $1.3 million from the second quarter of 2014. Second quarter net charge-offs were $978 thousand compared with $2.56 million in the first quarter and $4.18 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the second quarter. Nonperforming assets to total assets were .26 percent, equal to last quarter, and down from .32 percent a year ago.

Second quarter fee revenue totaled $17.3 million, up $1.58 million from the first quarter and $3.12 million from the second quarter of 2014. Higher mortgage fees and an increase in gains from SBA loan sales account for most of the increase from both prior periods. Mortgage fees of $3.71 million were up $952 thousand from the first quarter and up $1.83 million from a year ago, reflecting strong growth in home purchases and an increase in refinancing activity. Closed mortgage loans totaled $128 million in the second quarter of 2015, compared with $87.9 million in the first quarter and $68.5 million in the second quarter of 2014. SBA loan sale gains totaled $1.49 million in the second quarter of 2015 compared with $1.14 million in the first quarter of 2015 and $744 thousand in the second quarter of 2014.

Second quarter brokerage fees of $1.23 million from United’s advisory services business were down $319 thousand from the first quarter and were level with the second quarter of 2014. Service charges and fees of $8.38 million were up $760 thousand from the first quarter, reflecting growth in interchange fees, while down $152 thousand from a year ago, primarily reflecting the declining trend in overdraft fees.

“Our growth in fee revenue reflects our commitment to diversifying the revenue stream by focusing on fee generating products and services,” stated Tallent.

Operating expenses, excluding merger-related charges of $3.17 million, were $45.2 million in the second quarter compared to $43.1 million in the first quarter and $40.5 million a year ago. The acquisition of FNB added approximately $1.6 million in operating expenses from the acquisition date of May 1. FNB’s expenses are expected to decline as anticipated cost savings are realized. First quarter 2015 operating expenses included a non-core charge of $690 thousand associated with closing all loss sharing agreements with the FDIC.

Second quarter salaries and employee benefits expense of $28.0 million was up $1.52 million from the first quarter and $3.67 million from a year ago. The increases reflect the addition of FNB’s compensation expenses for two months, investment in new producers and support staff for the specialized lending area, and higher commissions and incentives associated with growth in the mortgage business and in commercial loans and core deposits. Other operating expenses of $4.89 million for the second quarter were down $358 thousand from the first quarter and up $486 thousand from the second quarter of 2014. Other operating expenses for the first quarter 2015 included the $690 thousand charge associated with closing all loss sharing agreements with the FDIC. The increase from a year ago is mostly due to higher lending support costs.

Tallent noted, “the previously announced merger with FNB closed on May 1, and their results of operations are included in United’s results from that date forward. Conversion of the operating systems was successfully completed last weekend.

“We also announced our planned merger with Palmetto Bancshares, Inc. and its banking subsidiary, The Palmetto Bank, which is headquartered in Greenville, South Carolina,” Tallent said. “The Palmetto Bank is a high-quality franchise with $1.2 billion in assets and 25 banking offices in the Upstate South Carolina markets. The merger creates significant benefits for United, including meaningful earnings per share accretion, improved growth profile and profitability, attractive rates of return, and higher franchise value. We have received all regulatory approvals and the transaction is scheduled to close on September 1. I am very pleased to welcome both First National Bank and The Palmetto Bank to the United family.”

At June 30, 2015, capital ratios were as follows: Tier 1 Risk-Based of 11.9 percent; Total Risk-Based of 13.1 percent; Tier 1 Common Risk-Based of 11.9 percent; and, Tier 1 Leverage of 9.1 percent.

“Our second quarter results continue the positive momentum from the first quarter, with 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. And, as always, we look forward to serving our customers – both existing and new – with the outstanding service for which our bankers are so very well known.”

Conference Call

United will hold a conference call today, Wednesday, July 22, 2015, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 74542415. 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 $8.2 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 114 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 and 2015, 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
																Second			For the Six
	2015						2014									Quarter			Months Ended						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second			2015-2014			June 30,						2015-2014
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2015			2014			Change
INCOME SUMMARY
Interest revenue	$	66,134		$	62,909		$	64,353		$	63,338		$	61,783					$	129,043		$	122,278
Interest expense		4,817			5,292			6,021			6,371			6,833						10,109			13,159
Net interest revenue		61,317			57,617			58,332			56,967			54,950			12	%		118,934			109,119			9	%
Provision for credit losses		900			1,800			1,800			2,000			2,200						2,700			4,700
Fee revenue		17,266			15,682			14,823			14,412			14,143			22			32,948			26,319			25
Total revenue		77,683			71,499			71,355			69,379			66,893			16			149,182			130,738			14
Expenses - operating⁽¹⁾		45,247			43,061			41,919			41,364			40,532			12			88,308			79,582			11
Income before income tax expense - operating⁽¹⁾		32,436			28,438			29,436			28,015			26,361			23			60,874			51,156			19
Income tax expense - operating⁽¹⁾		12,447			10,768			11,189			10,399			10,004			24			23,215			19,399			20
Net income - operating⁽¹⁾		19,989			17,670			18,247			17,616			16,357			22			37,659			31,757			19
Preferred dividends and discount accretion		17			-			-			-			-						17			439
Net income available to common shareholders - operating⁽¹⁾		19,972			17,670			18,247			17,616			16,357			22			37,642			31,318			20
Merger-related charges, net of income tax benefit		2,176			-			-			-			-						2,176			-
Net income available to common shareholders - GAAP	$	17,796		$	17,670		$	18,247		$	17,616		$	16,357			9		$	35,466		$	31,318			13

PERFORMANCE MEASURES
Per common share:
Diluted income - operating⁽¹⁾	$	.32		$	.29		$	.30		$	.29		$	.27			19		$	.61		$	.52			17
Diluted income - GAAP		.28			.29			.30			.29			.27			4			.57			.52			10
Cash dividends declared		.05			.05			.05			.03			.03						.10			.03
Book value		12.95			12.58			12.20			12.15			11.94			8			12.95			11.94			8
Tangible book value⁽³⁾		12.66			12.53			12.15			12.10			11.91			6			12.66			11.91			6

Key performance ratios:
Return on common equity - operating^(1)(2)(4)		9.90	%		9.34	%		9.60	%		9.41	%		8.99	%					9.63	%		8.82	%
Return on common equity - GAAP⁽²⁾⁽⁴⁾		8.83			9.34			9.60			9.41			8.99						9.08			8.82
Return on assets - operating⁽¹⁾⁽⁴⁾		1.00			.94			.96			.95			.88						.97			.87
Return on assets - GAAP⁽⁴⁾		.89			.94			.96			.95			.88						.92			.87
Dividend payout ratio - operating⁽¹⁾		15.63			17.24			16.67			10.34			11.11						16.39			5.77
Dividend payout ratio - GAAP		17.86			17.24			16.67			10.34			11.11						17.54			5.77
Net interest margin⁽⁴⁾		3.30			3.31			3.31			3.32			3.21						3.30			3.21
Efficiency ratio - operating⁽¹⁾		57.59			59.15			57.47			57.96			58.65						58.34			58.85
Efficiency ratio - GAAP		61.63			59.15			57.47			57.96			58.65						60.44			58.85
Average equity to average assets		10.05			9.86			9.76			9.85			9.61						9.96			9.56
Average tangible equity to average assets⁽³⁾		9.91			9.82			9.72			9.83			9.58						9.87			9.54
Average tangible common equity to average assets⁽³⁾		9.83			9.82			9.72			9.83			9.58						9.83			9.40
Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾		13.24			13.53			13.82			14.10			13.92						13.24			13.92

ASSET QUALITY
Nonperforming loans	$	18,805		$	19,015		$	17,881		$	18,745		$	20,724			(9	)	$	18,805		$	20,724
Foreclosed properties		2,356			1,158			1,726			3,146			2,969			(21	)		2,356			2,969
Total nonperforming assets (NPAs)		21,161			20,173			19,607			21,891			23,693			(11	)		21,161			23,693
Allowance for loan losses		70,129			70,007			71,619			71,928			73,248						70,129			73,248
Net charge-offs		978			2,562			2,509			3,155			4,175			(77	)		3,540			8,214
Allowance for loan losses to loans		1.36	%		1.46	%		1.53	%		1.57	%		1.66	%					1.36	%		1.66	%
Net charge-offs to average loans⁽⁴⁾		.08			.22			.22			.28			.38						.15			.38
NPAs to loans and foreclosed properties		.41			.42			.42			.48			.54						.41			.54
NPAs to total assets		.26			.26			.26			.29			.32						.26			.32

AVERAGE BALANCES($ in millions)
Loans	$	5,017		$	4,725		$	4,621		$	4,446		$	4,376			15		$	4,872		$	4,366			12
Investment securities		2,261			2,203			2,222			2,231			2,326			(3	)		2,232			2,323			(4	)
Earning assets		7,444			7,070			7,013			6,820			6,861			8			7,258			6,844			6
Total assets		8,017			7,617			7,565			7,374			7,418			8			7,818			7,401			6
Deposits		6,669			6,369			6,383			6,143			6,187			8			6,520			6,192			5
Shareholders’ equity		806			751			738			726			713			13			778			708			10
Common shares - basic (thousands)		62,549			60,905			60,830			60,776			60,712						61,730			60,386			2
Common shares - diluted(thousands)		62,553			60,909			60,833			60,779			60,714						61,734			60,388			2

AT PERIOD END ($ in millions)
Loans	$	5,174		$	4,788		$	4,672		$	4,569		$	4,410			17		$	5,174		$	4,410			17
Investment securities		2,322			2,201			2,198			2,222			2,190			6			2,322			2,190			6
Total assets		8,246			7,664			7,567			7,526			7,352			12			8,246			7,352			12
Deposits		6,808			6,438			6,327			6,241			6,164			10			6,808			6,164			10
Shareholders’ equity		827			764			740			736			722			15			827			722			15
Common shares outstanding(thousands)		62,700			60,309			60,259			60,248			60,139						62,700			60,139

⁽¹⁾ Excludes merger-related charges.⁽²⁾ Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).⁽³⁾Excludes effect of acquisition related intangibles and associated amortization.⁽⁴⁾ Annualized.⁽⁵⁾ June 30 and 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									For the Six Months Ended June 30,
(in thousands, except per share	Second			First			Fourth			Third			Second			For the Six Months Ended June 30,
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2015			2014

Interest revenue reconciliation
Interest revenue - taxable equivalent	$	66,134		$	62,909		$	64,353		$	63,338		$	61,783		$	129,043		$	122,278
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Interest revenue (GAAP)	$	65,808		$	62,534		$	63,955		$	62,933		$	61,406		$	128,342		$	121,544

Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	61,317		$	57,617		$	58,332		$	56,967		$	54,950		$	118,934		$	109,119
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Net interest revenue (GAAP)	$	60,991		$	57,242		$	57,934		$	56,562		$	54,573		$	118,233		$	108,385

Total revenue reconciliation
Total operating revenue	$	77,683		$	71,499		$	71,355		$	69,379		$	66,893		$	149,182		$	130,738
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Total revenue (GAAP)	$	77,357		$	71,124		$	70,957		$	68,974		$	66,516		$	148,481		$	130,004

Expense reconciliation
Expenses - operating	$	45,247		$	43,061		$	41,919		$	41,364		$	40,532		$	88,308		$	79,582
Merger-related charges		3,173			-			-			-			-			3,173			-
Expenses (GAAP)	$	48,420		$	43,061		$	41,919		$	41,364		$	40,532		$	91,481		$	79,582

Income before taxes reconciliation
Income before taxes - operating	$	32,436		$	28,438		$	29,436		$	28,015		$	26,361		$	60,874		$	51,156
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Merger-related charges		(3,173	)		-			-			-			-			(3,173	)		-
Income before taxes (GAAP)	$	28,937		$	28,063		$	29,038		$	27,610		$	25,984		$	57,000		$	50,422

Income tax expense reconciliation
Income tax expense - operating	$	12,447		$	10,768		$	11,189		$	10,399		$	10,004		$	23,215		$	19,399
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Merger-related charges, tax benefit		(997	)		-			-			-			-			(997	)		-
Income tax expense (GAAP)	$	11,124		$	10,393		$	10,791		$	9,994		$	9,627		$	21,517		$	18,665

Net income reconciliation
Net income - operating	$	19,989		$	17,670		$	18,247		$	17,616		$	16,357		$	37,659		$	31,757
Merger-related charges, net of income tax benefit		(2,176	)		-			-			-			-			(2,176	)		-
Net income (GAAP)	$	17,813		$	17,670		$	18,247		$	17,616		$	16,357		$	35,483		$	31,757

Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	19,972		$	17,670		$	18,247		$	17,616		$	16,357		$	37,642		$	31,318
Merger-related charges, net of income tax benefit		(2,176	)		-			-			-			-			(2,176	)		-
Net income available to common shareholders (GAAP)	$	17,796		$	17,670		$	18,247		$	17,616		$	16,357		$	35,466		$	31,318

Diluted income per common share reconciliation
Diluted income per common share - operating	$	.32		$	.29		$	.30		$	.29		$	.27		$	.61		$	.52
Merger-related charges		(.04	)		-			-			-			-			(.04	)		-
Diluted income per common share (GAAP)	$	.28		$	.29		$	.30		$	.29		$	.27		$	.57		$	.52

Book value per common share reconciliation
Tangible book value per common share	$	12.66		$	12.53		$	12.15		$	12.10		$	11.91		$	12.66		$	11.91
Effect of goodwill and other intangibles		.29			.05			.05			.05			.03			.29			.03
Book value per common share (GAAP)	$	12.95		$	12.58		$	12.20		$	12.15		$	11.94		$	12.95		$	11.94

Return on common equity reconciliation
Return on common equity - operating		9.90	%		9.34	%		9.60	%		9.41	%		8.99	%		9.63	%		8.82	%
Merger-related charges		(1.07	)		-			-			-			-			(.55	)		-
Return on common equity (GAAP)		8.83	%		9.34	%		9.60	%		9.41	%		8.99	%		9.08	%		8.82	%

Return on assets reconciliation
Return on assets - operating		1.00	%		.94	%		.96	%		.95	%		.88	%		.97	%		.87	%
Merger-related charges		(.11	)		-			-			-			-			(.05	)		-
Return on assets (GAAP)		.89	%		.94	%		.96	%		.95	%		.88	%		.92	%		.87	%

Dividend payout ratio reconciliation
Dividend payout ratio - operating		15.63	%		17.24	%		16.67	%		10.34	%		11.11	%		16.39	%		5.77	%
Merger-related charges		2.23			-			-			-			-			1.15			-
Dividend payout ratio (GAAP)		17.86	%		17.24	%		16.67	%		10.34	%		11.11	%		17.54	%		5.77	%

Efficiency ratio reconciliation
Efficiency ratio - operating		57.59	%		59.15	%		57.47	%		57.96	%		58.65	%		58.34	%		58.85	%
Merger-related charges		4.04			-			-			-			-			2.10			-
Efficiency ratio (GAAP)		61.63	%		59.15	%		57.47	%		57.96	%		58.65	%		60.44	%		58.85	%

Average equity to assets reconciliation
Tangible common equity to assets		9.83	%		9.82	%		9.72	%		9.83	%		9.58	%		9.83	%		9.40	%
Effect of preferred equity		.08			-			-			-			-			.04			.14
Tangible equity to assets		9.91			9.82			9.72			9.83			9.58			9.87			9.54
Effect of goodwill and other intangibles		.14			.04			.04			.02			.03			.09			.02
Equity to assets (GAAP)		10.05	%		9.86	%		9.76	%		9.85	%		9.61	%		9.96	%		9.56	%

Tangible common equity to risk-weighted assets reconciliation⁽¹⁾
Tangible common equity to risk-weighted assets		13.24	%		13.53	%		13.82	%		14.10	%		13.92	%		13.24	%		13.92	%
Effect of other comprehensive income		.28			.19			.35			.34			.53			.28			.53
Effect of deferred tax limitation		(2.46	)		(2.86	)		(3.11	)		(3.39	)		(3.74	)		(2.46	)		(3.74	)
Effect of trust preferred		.63			.67			1.00			1.02			1.04			.63			1.04
Effect of preferred equity		.17			-			-			-			-			.17			-
Tier I capital ratio (Regulatory)		11.86	%		11.53	%		12.06	%		12.07	%		11.75	%		11.86	%		11.75	%

(1) June 30 and 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			Year over
											Quarter Change			Year Change
	Second		First		Fourth		Third		Second
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,266	$	1,167	$	1,163	$	1,153	$	1,163	$	99		$	103
Income producing commercial RE		689		636		599		605		598		53			91
Commercial & industrial		793		716		710		650		554		77			239
Commercial construction		238		230		196		181		160		8			78
Total commercial		2,986		2,749		2,668		2,589		2,475		237			511
Residential mortgage		935		864		866		866		861		71			74
Home equity lines of credit		491		465		466		459		451		26			40
Residential construction		299		291		299		307		302		8			(3	)
Consumer installment		463		419		373		348		321		44			142
Total loans	$	5,174	$	4,788	$	4,672	$	4,569	$	4,410		386			764

LOANS BY MARKET
North Georgia	$	1,155	$	1,150	$	1,163	$	1,168	$	1,175		5			(20	)
Atlanta MSA		1,317		1,296		1,282		1,289		1,305		21			12
North Carolina		533		539		553		553		555		(6	)		(22	)
Coastal Georgia		499		476		456		444		426		23			73
Gainesville MSA		257		255		257		254		257		2			-
East Tennessee		525		281		280		281		270		244			255
South Carolina / Specialized Lending		531		475		412		337		206		56			325
Indirect auto		357		316		269		243		216		41			141
Total loans	$	5,174	$	4,788	$	4,672	$	4,569	$	4,410		386			764

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality


	Second Quarter 2015									First Quarter 2015									Fourth Quarter 2014
	Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	4,878		$	360		$	5,238		$	4,360		$	173		$	4,533		$	4,133		$	355		$	4,488
Income producing CRE		883			-			883			835			-			835			717			-			717
Commercial & industrial		1,389			-			1,389			1,629			-			1,629			1,571			-			1,571
Commercial construction		59			382			441			60			-			60			83			15			98
Total commercial		7,209			742			7,951			6,884			173			7,057			6,504			370			6,874
Residential mortgage		8,599			1,373			9,972			8,669			796			9,465			8,196			1,183			9,379
Home equity lines of credit		940			54			994			693			50			743			695			40			735
Residential construction		1,358			187			1,545			2,127			139			2,266			2,006			133			2,139
Consumer installment		699			-			699			642			-			642			480			-			480
Total NPAs	$	18,805		$	2,356		$	21,161		$	19,015		$	1,158		$	20,173		$	17,881		$	1,726		$	19,607
Balance as a % of
Unpaid Principal		64.9	%		46.6	%		62.2	%		72.0	%		56.6	%		70.9	%		69.9	%		54.1	%		68.1	%

NONPERFORMING ASSETS BY MARKET
North Georgia	$	6,157		$	657		$	6,814		$	6,101		$	662		$	6,763		$	5,669		$	711		$	6,380
Atlanta MSA		2,361			135			2,496			1,903			227			2,130			1,837			372			2,209
North Carolina		4,746			690			5,436			5,321			159			5,480			5,221			234			5,455
Coastal Georgia		659			-			659			901			-			901			799			105			904
Gainesville MSA		864			22			886			781			22			803			1,310			81			1,391
East Tennessee		1,885			852			2,737			1,808			30			1,838			1,414			201			1,615
South Carolina / Specialized Lending		1,565			-			1,565			1,700			58			1,758			1,285			22			1,307
Indirect auto		568			-			568			500			-			500			346			-			346
Total NPAs	$	18,805		$	2,356		$	21,161		$	19,015		$	1,158		$	20,173		$	17,881		$	1,726		$	19,607

NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	19,015		$	1,158		$	20,173		$	17,881		$	1,726		$	19,607		$	18,745		$	3,146		$	21,891
Acquisitions		-			962			962			-			-			-			-			-			-
Loans placed on non-accrual		6,552			-			6,552			5,944			-			5,944			7,140			-			7,140
Payments received		(3,839	)		-			(3,839	)		(1,513	)		-			(1,513	)		(5,286	)		-			(5,286	)
Loan charge-offs		(1,854	)		-			(1,854	)		(2,838	)		-			(2,838	)		(1,841	)		-			(1,841	)
Foreclosures		(1,069	)		1,069			-			(459	)		459			-			(877	)		877			-
Capitalized costs		-			-			-			-			-			-			-			-			-
Property sales		-			(895	)		(895	)		-			(1,108	)		(1,108	)		-			(2,483	)		(2,483	)
Write downs		-			(9	)		(9	)		-			(166	)		(166	)		-			(1	)		(1	)
Net gains (losses) on sales		-			71			71			-			247			247			-			187			187
Ending Balance	$	18,805		$	2,356		$	21,161		$	19,015		$	1,158		$	20,173		$	17,881		$	1,726		$	19,607

	Second Quarter 2015						First Quarter 2015						Fourth 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	$	285			.09	%	$	357			.12	%	$	891			.31	%
Income producing CRE		(276	)		(.17	)		241			.16			143			.09
Commercial & industrial		(627	)		(.33	)		341			.19			(295	)		(.17	)
Commercial construction		96			.16			22			.04			(6	)		(.01	)
Total commercial		(522	)		(.07	)		961			.14			733			.11
Residential mortgage		787			.35			416			.20			1,226			.56
Home equity lines of credit		322			.27			59			.05			238			.20
Residential construction		107			.14			1,061			1.46			(44	)		(.06	)
Consumer installment		284			.26			65			.07			356			.39
Total	$	978			.08		$	2,562			.22		$	2,509			.22

NET CHARGE-OFFS BY MARKET
North Georgia	$	911			.32	%	$	1,053			.37	%	$	791			.27	%
Atlanta MSA		(234	)		(.07	)		188			.06			147			.05
North Carolina		176			.13			666			.49			1,103			.79
Coastal Georgia		(40	)		(.03	)		134			.12			30			.03
Gainesville MSA		(233	)		(.36	)		(65	)		(.10	)		94			.15
East Tennessee		127			.11			471			.68			54			.08
South Carolina / Specialized Lending		148			.12			-			-			110			.11
Indirect auto		123			.14			115			.16			180			.29
Total	$	978			.08		$	2,562			.22		$	2,509			.22

(1) 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)	2015		2014			2015			2014
Interest revenue:
Loans, including fees	$	52,976	$	48,261		$	102,640		$	95,949
Investment securities, including tax exempt of $181, $193, $339 and $381		12,037		12,165			24,095			23,772
Deposits in banks and short-term investments		795		980			1,607			1,823
Total interest revenue		65,808		61,406			128,342			121,544

Interest expense:
Deposits:
NOW		348		411			742			851
Money market		806		757			1,479			1,320
Savings		26		21			46			41
Time		895		2,018			2,004			3,789
Total deposit interest expense		2,075		3,207			4,271			6,001
Short-term borrowings		82		908			180			1,748
Federal Home Loan Bank advances		454		80			846			138
Long-term debt		2,206		2,638			4,812			5,272
Total interest expense		4,817		6,833			10,109			13,159
Net interest revenue		60,991		54,573			118,233			108,385
Provision for credit losses		900		2,200			2,700			4,700
Net interest revenue after provision for credit losses		60,091		52,373			115,533			103,685

Fee revenue:
Service charges and fees		8,375		8,527			15,990			16,425
Mortgage loan and other related fees		3,707		1,877			6,462			3,231
Brokerage fees		1,232		1,245			2,783			2,422
Gains from sales of SBA loans		1,494		744			2,635			744
Securities gains, net		13		4,435			1,552			4,652
Loss from prepayment of debt		-		(4,446	)		(1,038	)		(4,446	)
Other		2,445		1,761			4,564			3,291
Total fee revenue		17,266		14,143			32,948			26,319
Total revenue		77,357		66,516			148,481			130,004

Operating expenses:				��
Salaries and employee benefits		27,961		24,287			54,407			48,683
Communications and equipment		3,304		3,037			6,575			6,276
Occupancy		3,415		3,262			6,693			6,640
Advertising and public relations		1,127		1,139			1,877			1,765
Postage, printing and supplies		993		804			1,931			1,580
Professional fees		2,257		2,172			4,176			3,599
FDIC assessments and other regulatory charges		1,298		1,425			2,507			2,778
Merger-related charges		3,173		-			3,173			-
Other		4,892		4,406			10,142			8,261
Total operating expenses		48,420		40,532			91,481			79,582
Net income before income taxes		28,937		25,984			57,000			50,422
Income tax expense		11,124		9,627			21,517			18,665
Net income		17,813		16,357			35,483			31,757
Preferred stock dividends and discount accretion		17		-			17			439
Net income available to common shareholders	$	17,796	$	16,357		$	35,466		$	31,318

Earnings per common share:
Basic	$	.28	$	.27		$	.57		$	.52
Diluted		.28		.27			.57			.52
Weighted average common shares outstanding:
Basic		62,549		60,712			61,730			60,386
Diluted		62,553		60,714			61,734			60,388

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet(Unaudited)
	June 30,			December 31,			June 30,
(in thousands, except share and per share data)	2015			2014			2014

ASSETS
Cash and due from banks	$	80,865		$	77,180		$	91,791
Interest-bearing deposits in banks		94,032			89,074			100,270
Short-term investments		30,000			26,401			47,999
Cash and cash equivalents		204,897			192,655			240,060
Securities available for sale		1,942,319			1,782,734			1,741,268
Securities held to maturity (fair value $388,066, $425,233 and $458,864)		379,757			415,267			448,752
Mortgage loans held for sale		22,003			13,737			14,918
Loans, net of unearned income		5,173,517			4,672,119			4,410,285
Less allowance for loan losses		(70,129	)		(71,619	)		(73,248	)
Loans, net		5,103,388			4,600,500			4,337,037
Premises and equipment, net		173,313			159,390			161,614
Bank owned life insurance		92,952			81,294			80,922
Accrued interest receivable		21,030			20,103			19,141
Net deferred tax asset		195,746			215,503			233,149
Derivative financial instruments		21,728			20,599			22,024
Goodwill and other intangible assets		20,190			3,641			2,731
Other assets		68,980			61,563			50,450
Total assets	$	8,246,303		$	7,566,986		$	7,352,066
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,847,696		$	1,574,317		$	1,519,635
NOW		1,416,279			1,504,887			1,334,883
Money market		1,406,352			1,273,283			1,245,912
Savings		350,049			292,308			279,203
Time:
Less than $100,000		792,300			748,478			805,289
Greater than $100,000		465,347			508,228			554,310
Brokered		529,920			425,011			424,313
Total deposits		6,807,943			6,326,512			6,163,545
Short-term borrowings		25,000			6,000			76,256
Federal Home Loan Bank advances		385,125			270,125			175,125
Long-term debt		113,901			129,865			129,865
Derivative financial instruments		32,374			31,997			36,545
Unsettled securities purchases		-			5,425			7,264
Accrued expenses and other liabilities		54,728			57,485			41,497
Total liabilities		7,419,071			6,827,409			6,630,097
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 9,992 shares issued and outstanding		9,992			-			-
Common stock, $1 par value; 100,000,000 shares authorized;
54,414,863, 50,178,605 and 50,058,295 shares issued and outstanding		54,415			50,178			50,058
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
8,285,516, 10,080,787 and 10,080,787 shares issued and outstanding		8,286			10,081			10,081
Common stock issuable; 413,014, 357,983 and 314,039 shares		6,071			5,168			4,649
Capital surplus		1,123,730			1,080,508			1,091,780
Accumulated deficit		(358,294	)		(387,568	)		(418,583	)
Accumulated other comprehensive loss		(16,968	)		(18,790	)		(16,016	)
Total shareholders’ equity		827,232			739,577			721,969
Total liabilities and shareholders’ equity	$	8,246,303		$	7,566,986		$	7,352,066

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
	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)	$	5,017,306		$	53,081			4.24	%	$	4,376,174		$	48,435		4.44	%
Taxable securities(3)		2,235,561			11,856			2.12			2,306,457			11,972		2.08
Tax-exempt securities(1)(3)		25,685			296			4.61			19,592			316		6.45
Federal funds sold and other interest-earning assets		165,643			901			2.18			158,418			1,060		2.68

Total interest-earning assets		7,444,195			66,134			3.56			6,860,641			61,783		3.61
Non-interest-earning assets:
Allowance for loan losses		(71,006	)								(76,843	)
Cash and due from banks		77,124									63,853
Premises and equipment		167,926									161,443
Other assets(3)		398,356									408,768
Total assets	$	8,016,595								$	7,417,862

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,419,142			348			.10		$	1,356,141			411		.12
Money market		1,607,665			806			.20			1,361,045			757		.22
Savings		335,093			26			.03			275,540			21		.03
Time less than $100,000		774,193			791			.41			818,048			933		.46
Time greater than $100,000		474,905			482			.41			563,489			865		.62
Brokered time deposits		276,073			(378	)		(.55	)		334,919			220		.26
Total interest-bearing deposits		4,887,071			2,075			.17			4,709,182			3,207		.27

Federal funds purchased and other borrowings		47,698			82			.69			108,311			908		3.36
Federal Home Loan Bank advances		289,707			454			.63			154,795			80		.21
Long-term debt		113,901			2,206			7.77			129,865			2,638		8.15
Total borrowed funds		451,306			2,742			2.44			392,971			3,626		3.70

Total interest-bearing liabilities		5,338,377			4,817			.36			5,102,153			6,833		.54
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,782,405									1,477,849
Other liabilities		90,091									125,173
Total liabilities		7,210,873									6,705,175
Shareholders’ equity		805,722									712,687
Total liabilities and shareholders’ equity	$	8,016,595								$	7,417,862

Net interest revenue				$	61,317								$	54,950
Net interest-rate spread								3.20	%							3.07	%

Net interest margin(4)								3.30	%							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 $18.9 million in 2015 and pretax unrealized gains of $1.86 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.

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Six Months Ended June 30,

	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⁾	$	4,872,112		$	102,946			4.26	%	$	4,365,930		$	96,303		4.45	%
Taxable securities⁽³⁾		2,211,293			23,756			2.15			2,303,404			23,391		2.03
Tax-exempt securities⁽¹⁾⁽³⁾		20,987			555			5.29			19,881			624		6.28
Federal funds sold and other interest-earning assets		153,597			1,786			2.33			154,651			1,960		2.53

Total interest-earning assets		7,257,989			129,043			3.58			6,843,866			122,278		3.60
Non-interest-earning assets:
Allowance for loan losses		(71,596	)								(77,165	)
Cash and due from banks		78,069									62,958
Premises and equipment		163,737									162,112
Other assets⁽³⁾		389,874									409,466
Total assets	$	7,818,073								$	7,401,237

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,447,370			742			.10		$	1,385,964			851		.12
Money market		1,537,678			1,479			.19			1,368,975			1,320		.19
Savings		317,814			46			.03			267,588			41		.03
Time less than $100,000		755,826			1,515			.40			847,707			1,946		.46
Time greater than $100,000		484,624			1,146			.48			570,799			1,783		.63
Brokered time deposits		274,708			(657	)		(.48	)		311,579			60		.04
Total interest-bearing deposits		4,818,020			4,271			.18			4,752,612			6,001		.25

Federal funds purchased and other borrowings		41,953			180			.87			110,436			1,748		3.19
Federal Home Loan Bank advances		264,584			846			.64			140,014			138		.20
Long-term debt		120,782			4,812			8.03			129,865			5,272		8.19
Total borrowed funds		427,319			5,838			2.76			380,315			7,158		3.80

Total interest-bearing liabilities		5,245,339			10,109			.39			5,132,927			13,159		.52
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,702,140									1,439,447
Other liabilities		92,138									120,943
Total liabilities		7,039,617									6,693,317
Shareholders’ equity		778,456									707,920
Total liabilities and shareholders’ equity	$	7,818,073								$	7,401,237

Net interest revenue				$	118,934								$	109,119
Net interest-rate spread								3.19	%							3.08	%

Net interest margin⁽⁴⁾								3.30	%							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 $14.8 million in 2015 and pretax unrealized losses of $1.37 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.

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