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 OPERATING INCOME OF $23.8 MILLION FOR FOURTH QUARTER 2015,
UP 30 PERCENT FROM A YEAR AGO
| ● | Operating earnings per diluted share of 33 cents, up 10 percent from a year ago | |
| ● | Operating return on assets of .99 percent | |
| ● | Operating return on tangible common equity of 10.9 percent | |
| ● | Loans up $162 million from third quarter, or 11 percent annualized, excluding sale of healthcare loans | |
| ● | Loan growth for year of $444 million, or 10 percent, excluding mergers and healthcare loan sale | |
| ● | Core transaction deposits up $524 million for 2015, or 14 percent, excluding deposits acquired in mergers |
BLAIRSVILLE, GA – January 20, 2016 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today continued its strong momentum as it moves forward as a regional community bank in the Southeast, reflecting strong loan, core deposit and fee revenue growth, and a lower provision for credit losses. For the fourth quarter of 2015, net operating income of $23.8 million increased 30 percent from a year ago and operating earnings per diluted share of 33 cents was up 10 percent from a year ago.
Operating earnings and operating earnings per diluted share for the fourth quarter of 2015 exclude the effects of merger-related and other charges for impairment on properties acquired for future expansion. Including those charges, net income was $18.2 million for the fourth quarter, or 25 cents per diluted share. Also, operating earnings this quarter include three months of earnings from the acquisition of The Palmetto Bank (“Palmetto”), as compared to one month for the third quarter of 2015.
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For the full year of 2015, United achieved net income of $71.6 million, or $1.09 per diluted share. Excluding merger-related and other charges, net operating income was $83.2 million, or $1.27 per diluted share.
At December 31, 2015, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.5 percent; Common Equity Tier 1 Risk-Based of 11.5 percent; and, Tier 1 Leverage of 8.3 percent.
“United continues to enhance its long term value potential. This past year of 2015 demonstrated the strengths of our footprint and the momentum that characterizes our organization as we enter into 2016,” said Jimmy Tallent, chairman and chief executive officer. “In 2015, we struck the proper balance of investing for our future and delivering strong financial results. The fourth quarter was a continuation of that solid performance.
“Total loan production continued strong in the fourth quarter, though not readily apparent in our year-end loan balances due to the sale of our $190 million of healthcare loans,” Tallent continued. “Year-to-date loan growth, excluding loans acquired in mergers and our sale of healthcare loans, was $444 million, or 10 percent, slightly above our 2015 target of mid-to-upper-single-digit loan growth. Our loan growth was funded with solid core transaction deposit growth of $524 million, or 14 percent, excluding mergers.
“Fourth quarter net loan growth of $162 million, excluding the healthcare loan sale, was driven by loan production of $590 million across all of our markets,” added Tallent. “Our community banks originated $360 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $157 million.”
2
Fourth quarter taxable-equivalent net interest revenue totaled $74.0 million, up $8.33 million from the third quarter of 2015 and up $15.7 million from the fourth quarter of 2014. The increase in net interest revenue reflects strong loan and core deposit growth, net interest revenue from the Palmetto and First National Bank acquisitions, and an increase in net interest margin.
“The taxable-equivalent net interest margin of 3.34 percent is an increase of eight basis points from the third quarter and up three basis points from a year ago,” said Tallent. “The increase from third quarter reflects higher yields on our loan and securities portfolios as well as a two basis point decrease in the average rate on our interest-bearing liabilities.
“This quarter, our loan yield, net interest margin and net interest revenue benefited from the discount accretion from the acquired loan portfolios. The sale of our lower-yielding healthcare loans also contributed to the higher loan yield and net interest margin,” commented Tallent. “Additionally, the securities yield benefited from the mix of floating rate securities, slower prepayments and restructuring of a corporate bond, while interest-bearing liabilities benefited from Palmetto’s highly desirable deposit base that provided a very low cost source of funds.”
The fourth quarter provision for credit losses was $300 thousand, down $400 thousand from the third quarter and down $1.50 million from the fourth quarter of 2014. Fourth quarter net charge-offs were $1.30 million compared with $1.42 million in the third quarter and $2.51 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 compared with fourth quarter 2014. Nonperforming assets were .29 percent of total assets at year-end, compared with .29 percent in the third quarter and .26 percent a year ago.
Fourth quarter fee revenue totaled $21.3 million, up $2.99 million from the third quarter and $6.46 million from the fourth quarter of 2014. The increase from the third quarter was primarily due to the full quarter impact of the Palmetto acquisition. Total service charges and fees were $11.5 million, up $2.17 million from the third quarter and up $3.05 million from a year ago. Mortgage fees of $3.29 million were down $550 thousand from the third quarter and up $1.18 million from a year ago. The decrease from the third quarter reflects seasonality and lower refinancing activity. Closed mortgage loans totaled $138 million in the fourth quarter of 2015, compared with $141 million in the third quarter and $77.4 million in the fourth quarter of 2014. During the fourth quarter, sales of $25.1 million in SBA loans resulted in net gains of $2.00 million. This compares with $17.8 million in loans sold and net gains of $1.65 million in the third quarter of 2015, and $15.8 million in loans sold and net gains of $926 thousand in the fourth quarter of 2014.
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“We are committed to growing our revenue stream by focusing on fee-generating products and services,” stated Tallent. “The growing SBA lending business and commitment to expanding our mortgage origination business are key parts of this strategy.”
Operating expenses, excluding merger-related and other charges of $9.08 million, were $56.4 million in the fourth quarter. This compares with $48.5 million in the third quarter of 2015 and $41.9 million in the fourth quarter of 2014. The increase from the third quarter reflects approximately $5.6 million of operating expenses related to the full-quarter impact of the Palmetto acquisition. Palmetto’s operating expenses are expected to decline following systems conversions late in the first quarter in 2016, as anticipated cost savings are realized.
“The increase in operating expenses from third quarter also reflects higher professional fees and consulting services for several, mostly one-time, regulatory-related compliance projects throughout the company,” stated Tallent. “With the heightened sensitivity to compliance, we made a decision to accelerate these projects into the current year.”
Fourth quarter salaries and employee benefits expense totaled $32.9 million, up $3.60 million from the third quarter and $6.35 million from a year ago. The linked-quarter increase was primarily due to the full-quarter impact of Palmetto’s costs, our new Charleston loan production office, and higher incentive costs associated with the growth in earnings and lending businesses. The increase from a year ago reflects the impact of mergers, investment in new lenders and support staff for the specialized lending area, as well as higher commissions and incentives associated with the overall improvement in earnings and growth in the SBA and mortgage lending businesses, commercial loans and core deposits.
4
Occupancy expense of $4.67 million and communications and equipment expense of $4.74 million for the fourth quarter were up $653 thousand and $772 thousand, respectively, with the full-quarter of Palmetto’s expenses accounting for most of the increase in both expense categories.
Other operating expenses for the fourth quarter totaled $7.01 million, up $1.46 million from the third quarter and up $3.08 million from the fourth quarter of 2014. The linked-quarter increase is mostly due to the inclusion of Palmetto’s operating expenses for the full-quarter versus one month in the third quarter. The increase from last year is due to the acquisitions and higher transaction processing costs for interchange and internet banking services.
“Palmetto merged into United on September 1 and our team of bankers has been working diligently to bring these two great companies together,” noted Tallent. “System conversions are targeted for late February 2016 and, upon their completion, Palmetto branches will begin doing business under the United Community Bank brand.”
Fourth quarter expenses included an after-tax merger charge of $1.94 million primarily related to severance and retention bonuses, system conversion costs, and advisory and professional services fees for the Palmetto acquisition. United also incurred an after-tax non-operating impairment charge in the fourth quarter of $3.65 million to write-down properties acquired in prior years for future branch expansion.
“As part of our growth strategy, we are evaluating all of our delivery channels, including future branch sites,” said Tallent. “Some of these properties will be retained for future branch sites, others will be sold. These decisions will be made over the next two years as we continue to execute on our growth strategies. However, because we’ve held these properties for a long time, we evaluated them for impairment and wrote-down the properties accordingly.”
“Our fourth quarter results mark the completion of another strong year,” Tallent said. “We will remember 2015 as the year we successfully re-entered the mergers and acquisitions business. I could not be more pleased with the partners we have chosen and our exceptional team of bankers who worked tirelessly to bring it all about. I’m excited about the momentum and foundation we are building at United and the opportunities for growth and success they will bring.”
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Conference Call
United will hold a conference call today, Wednesday, January 20, 2016, 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 19833202. 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 atwww.ucbi.com.
About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.6 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 134 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. United Community Bank offers a full range of consumer and commercial banking services including 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 again in 2016 was ranked among the top 100 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.
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6
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Selected Financial Information |
| Fourth | For the Twelve | |||||||||||||||||||||||||||
| 2015 | 2014 | Quarter | Months Ended | YTD | ||||||||||||||||||||||||
| (in thousands, except per share | Fourth | Third | Second | First | Fourth | 2015-2014 | December 31, | 2015-2014 | ||||||||||||||||||||
| data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2015 | 2014 | Change | |||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||
| Interest revenue | $ | 79,646 | $ | 71,120 | $ | 66,134 | $ | 62,909 | $ | 64,353 | $ | 279,809 | $ | 249,969 | ||||||||||||||
| Interest expense | 5,598 | 5,402 | 4,817 | 5,292 | 6,021 | 21,109 | 25,551 | |||||||||||||||||||||
| Net interest revenue | 74,048 | 65,718 | 61,317 | 57,617 | 58,332 | 27 | % | 258,700 | 224,418 | 15 | % | |||||||||||||||||
| Provision for credit losses | 300 | 700 | 900 | 1,800 | 1,800 | 3,700 | 8,500 | |||||||||||||||||||||
| Fee revenue | 21,284 | 18,297 | 17,266 | 15,682 | 14,823 | 44 | 72,529 | 55,554 | 31 | |||||||||||||||||||
| Total revenue | 95,032 | 83,315 | 77,683 | 71,499 | 71,355 | 33 | 327,529 | 271,472 | 21 | |||||||||||||||||||
| Expenses - operating(1) | 56,410 | 48,525 | 45,247 | 43,061 | 41,919 | 35 | 193,243 | 162,865 | 19 | |||||||||||||||||||
| Income before income tax expense - operating(1) | 38,622 | 34,790 | 32,436 | 28,438 | 29,436 | 31 | 134,286 | 108,607 | 24 | |||||||||||||||||||
| Income tax expense - operating(1) | 14,822 | 13,064 | 12,447 | 10,768 | 11,189 | 32 | 51,101 | 40,987 | 25 | |||||||||||||||||||
| Net income - operating(1) | 23,800 | 21,726 | 19,989 | 17,670 | 18,247 | 30 | 83,185 | 67,620 | 23 | |||||||||||||||||||
| Preferred dividends and discount accretion | 25 | 25 | 17 | - | - | 67 | 439 | |||||||||||||||||||||
| Net income available to common shareholders - operating(1) | 23,775 | 21,701 | 19,972 | 17,670 | 18,247 | 30 | 83,118 | 67,181 | 24 | |||||||||||||||||||
| Merger-related and other charges, net of income tax benefit | 5,592 | 3,839 | 2,176 | - | - | 11,607 | - | |||||||||||||||||||||
| Net income available to common shareholders - GAAP | $ | 18,183 | $ | 17,862 | $ | 17,796 | $ | 17,670 | $ | 18,247 | - | $ | 71,511 | $ | 67,181 | 6 | ||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||
| Diluted income - operating(1) | $ | .33 | $ | .33 | $ | .32 | $ | .29 | $ | .30 | 10 | $ | 1.27 | $ | 1.11 | 14 | ||||||||||||
| Diluted income - GAAP | .25 | .27 | .28 | .29 | .30 | (17 | ) | 1.09 | 1.11 | (2 | ) | |||||||||||||||||
| Cash dividends declared | .06 | .06 | .05 | .05 | .05 | .22 | .11 | |||||||||||||||||||||
| Book value | 14.02 | 13.95 | 12.95 | 12.58 | 12.20 | 15 | 14.02 | 12.20 | 15 | |||||||||||||||||||
| Tangible book value (3) | 12.06 | 12.08 | 12.66 | 12.53 | 12.15 | (1 | ) | 12.06 | 12.15 | (1 | ) | |||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||
| Return on tangible common equity - operating (1)(2)(3)(4) | 10.87 | % | 10.29 | % | 10.20 | % | 9.46 | % | 9.74 | % | 10.24 | % | 9.32 | % | ||||||||||||||
| Return on common equity - operating (1)(2)(4) | 9.18 | 9.54 | 9.90 | 9.34 | 9.60 | 9.48 | 9.17 | |||||||||||||||||||||
| Return on common equity - GAAP (2)(4) | 7.02 | 7.85 | 8.83 | 9.34 | 9.60 | 8.15 | 9.17 | |||||||||||||||||||||
| Return on assets - operating (1)(4) | .99 | 1.00 | 1.00 | .94 | .96 | .98 | .91 | |||||||||||||||||||||
| Return on assets - GAAP (4) | .76 | .82 | .89 | .94 | .96 | .85 | .91 | |||||||||||||||||||||
| Dividend payout ratio - operating(1) | 18.18 | 18.18 | 15.63 | 17.24 | 16.67 | 17.32 | 9.91 | |||||||||||||||||||||
| Dividend payout ratio - GAAP | 24.00 | 22.22 | 17.86 | 17.24 | 16.67 | 20.18 | 9.91 | |||||||||||||||||||||
| Net interest margin (4) | 3.34 | 3.26 | 3.30 | 3.31 | 3.31 | 3.30 | 3.26 | |||||||||||||||||||||
| Efficiency ratio - operating(1) | 59.41 | 57.81 | 57.59 | 59.15 | 57.47 | 58.51 | 58.26 | |||||||||||||||||||||
| Efficiency ratio - GAAP | 68.97 | 64.65 | 61.63 | 59.15 | 57.47 | 63.96 | 58.26 | |||||||||||||||||||||
| Average equity to average assets | 10.68 | 10.39 | 10.05 | 9.86 | 9.76 | 10.27 | 9.69 | |||||||||||||||||||||
| Average tangible equity to average assets (3) | 9.40 | 9.88 | 9.91 | 9.82 | 9.72 | 9.74 | 9.67 | |||||||||||||||||||||
| Average tangible common equity to average assets (3) | 9.29 | 9.77 | 9.83 | 9.82 | 9.72 | 9.66 | 9.60 | |||||||||||||||||||||
| Tangible common equity to risk-weighted assets (3)(5)(6) | 12.82 | 13.08 | 13.24 | 13.53 | 13.82 | 12.82 | 13.82 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Nonperforming loans | $ | 22,653 | $ | 20,064 | $ | 18,805 | $ | 19,015 | $ | 17,881 | 27 | $ | 22,653 | $ | 17,881 | 27 | ||||||||||||
| Foreclosed properties | 4,883 | 7,669 | 2,356 | 1,158 | 1,726 | 183 | 4,883 | 1,726 | 183 | |||||||||||||||||||
| Total nonperforming assets (NPAs) | 27,536 | 27,733 | 21,161 | 20,173 | 19,607 | 40 | 27,536 | 19,607 | 40 | |||||||||||||||||||
| Allowance for loan losses | 68,448 | 69,062 | 70,129 | 70,007 | 71,619 | (4 | ) | 68,448 | 71,619 | (4 | ) | |||||||||||||||||
| Net charge-offs | 1,302 | 1,417 | 978 | 2,562 | 2,509 | (48 | ) | 6,259 | 13,878 | (55 | ) | |||||||||||||||||
| Allowance for loan losses to loans | 1.14 | % | 1.15 | % | 1.36 | % | 1.46 | % | 1.53 | % | 1.14 | % | 1.53 | % | ||||||||||||||
| Allowance for loan losses to loans, excl. acquired loans | 1.35 | 1.37 | 1.42 | 1.46 | 1.53 | 1.35 | 1.53 | |||||||||||||||||||||
| Net charge-offs to average loans (4) | .09 | .10 | .08 | .22 | .22 | .12 | .31 | |||||||||||||||||||||
| NPAs to loans and foreclosed properties | .46 | .46 | .41 | .42 | .42 | .46 | .42 | |||||||||||||||||||||
| NPAs to total assets | .29 | .29 | .26 | .26 | .26 | .29 | .26 | |||||||||||||||||||||
| AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||
| Loans | $ | 5,975 | $ | 5,457 | $ | 5,017 | $ | 4,725 | $ | 4,621 | 29 | $ | 5,298 | $ | 4,450 | 19 | ||||||||||||
| Investment securities | 2,607 | 2,396 | 2,261 | 2,203 | 2,222 | 17 | 2,368 | 2,274 | 4 | |||||||||||||||||||
| Earning assets | 8,792 | 8,009 | 7,444 | 7,070 | 7,013 | 25 | 7,834 | 6,880 | 14 | |||||||||||||||||||
| Total assets | 9,558 | 8,634 | 8,017 | 7,617 | 7,565 | 26 | 8,462 | 7,436 | 14 | |||||||||||||||||||
| Deposits | 8,028 | 7,135 | 6,669 | 6,369 | 6,383 | 26 | 7,055 | 6,228 | 13 | |||||||||||||||||||
| Shareholders’ equity | 1,021 | 897 | 806 | 751 | 738 | 38 | 869 | 720 | 21 | |||||||||||||||||||
| Common shares - basic (thousands) | 72,135 | 66,294 | 62,549 | 60,905 | 60,830 | 19 | 65,488 | 60,588 | 8 | |||||||||||||||||||
| Common shares - diluted(thousands) | 72,140 | 66,300 | 62,553 | 60,909 | 60,833 | 19 | 65,492 | 60,590 | 8 | |||||||||||||||||||
| AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||
| Loans | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | $ | 4,672 | 28 | $ | 5,995 | $ | 4,672 | 28 | ||||||||||||
| Investment securities | 2,656 | 2,457 | 2,322 | 2,201 | 2,198 | 21 | 2,656 | 2,198 | 21 | |||||||||||||||||||
| Total assets | 9,626 | 9,414 | 8,246 | 7,664 | 7,567 | 27 | 9,626 | 7,567 | 27 | |||||||||||||||||||
| Deposits | 7,881 | 7,905 | 6,808 | 6,438 | 6,327 | 25 | 7,881 | 6,327 | 25 | |||||||||||||||||||
| Shareholders’ equity | 1,018 | 1,013 | 827 | 764 | 740 | 38 | 1,018 | 740 | 38 | |||||||||||||||||||
| Common shares outstanding(thousands) | 71,484 | 71,472 | 62,700 | 60,309 | 60,259 | 19 | 71,484 | 60,259 | 19 | |||||||||||||||||||
(1)Excludes merger-related charges and impairment losses on surplus bank property.(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) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.(6) Fourth quarter 2015 ratio is preliminary.
| UNITED COMMUNITY BANKS, INC. |
| Selected Financial Information |
| For the Years Ended December 31, |
| (in thousands, except per share data; | ||||||||||||||||
| taxable equivalent) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||
| INCOME SUMMARY | ||||||||||||||||
| Net interest revenue | $ | 258,700 | $ | 224,418 | $ | 219,641 | $ | 229,758 | $ | 238,670 | ||||||
| Provision for credit losses | 3,700 | 8,500 | 65,500 | 62,500 | 251,000 | |||||||||||
| Fee revenue | 72,529 | 55,554 | 56,598 | 56,112 | 44,907 | |||||||||||
| Total revenue | 327,529 | 271,472 | 210,739 | 223,370 | 32,577 | |||||||||||
| Expenses - operating(1) | 193,243 | 162,865 | 174,304 | 186,774 | 261,599 | |||||||||||
| Income (loss) before income tax expense (benefit) - operating(1) | 134,286 | 108,607 | 36,435 | 36,596 | (229,022 | ) | ||||||||||
| Income tax expense (benefit) - operating(1) | 51,101 | 40,987 | (236,705 | ) | 2,740 | (2,276 | ) | |||||||||
| Net income (loss) - operating(1) | 83,185 | 67,620 | 273,140 | 33,856 | (226,746 | ) | ||||||||||
| Preferred dividends and discount accretion | 67 | 439 | 12,078 | 12,148 | 11,838 | |||||||||||
| Net income (loss) available to common shareholders - operating(1) | 83,118 | 67,181 | 261,062 | 21,708 | (238,584 | ) | ||||||||||
| Merger-related and other charges, net of income tax benefit | (11,607 | ) | - | - | - | - | ||||||||||
| Net income (loss) available to common shareholders - GAAP | $ | 71,511 | $ | 67,181 | $ | 261,062 | $ | 21,708 | $ | (238,584 | ) | |||||
| PERFORMANCE MEASURES | ||||||||||||||||
| Per common share: | ||||||||||||||||
| Diluted income (loss) - operating(1) | $ | 1.27 | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | |||||
| Diluted income (loss) - GAAP | 1.09 | 1.11 | 4.44 | .38 | (5.97 | ) | ||||||||||
| Cash dividends declared | .22 | .11 | - | - | - | |||||||||||
| Book value | 14.02 | 12.20 | 11.30 | 6.67 | 6.62 | |||||||||||
| Tangible book value (3) | 12.06 | 12.15 | 11.26 | 6.57 | 6.47 | |||||||||||
| Key performance ratios: | ||||||||||||||||
| Return on tangible common equity - operating(1)(2)(3) | 10.24 | % | 9.32 | % | 47.35 | % | 6.27 | % | (96.20 | )% | ||||||
| Return on common equity - operating(1)(2) | 9.48 | 9.17 | 46.72 | 5.43 | (93.57 | ) | ||||||||||
| Return on common equity - GAAP(2) | 8.15 | 9.17 | 46.72 | 5.43 | (93.57 | ) | ||||||||||
| Return on assets - operating(1) | .98 | .91 | 3.86 | .49 | (3.15 | ) | ||||||||||
| Return on assets - GAAP | .85 | .91 | 3.86 | .49 | (3.15 | ) | ||||||||||
| Dividend payout ratio - operating(1) | 17.32 | 9.91 | - | - | - | |||||||||||
| Dividend payout ratio - GAAP | 20.18 | 9.91 | - | - | - | |||||||||||
| Net interest margin | 3.30 | 3.26 | 3.30 | 3.51 | 3.52 | |||||||||||
| Efficiency ratio - operating(1) | 58.51 | 58.26 | 63.14 | 65.43 | 92.27 | |||||||||||
| Efficiency ratio - GAAP | 63.96 | 58.26 | 63.14 | 65.43 | 92.27 | |||||||||||
| Average equity to average assets | 10.27 | 9.69 | 10.35 | 8.47 | 7.75 | |||||||||||
| Average tangible equity to average assets(3) | 9.74 | 9.67 | 10.31 | 8.38 | 7.62 | |||||||||||
| Average tangible common equity to average assets(3) | 9.66 | 9.60 | 7.55 | 5.54 | 3.74 | |||||||||||
| Tangible common equity to risk-weighted assets (3)(4)(5) | 12.82 | 13.82 | 13.17 | 8.26 | 8.25 | |||||||||||
| ASSET QUALITY | ||||||||||||||||
| Non-performing loans | $ | 22,653 | $ | 17,881 | $ | 26,819 | $ | 109,894 | $ | 127,479 | ||||||
| Foreclosed properties | 4,883 | 1,726 | 4,221 | 18,264 | 32,859 | |||||||||||
| Total non-performing assets (NPAs) | 27,536 | 19,607 | 31,040 | 128,158 | 160,338 | |||||||||||
| Allowance for loan losses | 68,448 | 71,619 | 76,762 | 107,137 | 114,468 | |||||||||||
| Net charge-offs | 6,259 | 13,879 | 93,710 | 69,831 | 311,227 | |||||||||||
| Allowance for loan losses to loans | 1.14 | % | 1.53 | % | 1.77 | % | 2.57 | % | 2.79 | % | ||||||
| Allowance for loan losses to loans, excluding acquired loans | 1.35 | 1.53 | 1.77 | 2.57 | 2.79 | |||||||||||
| Net charge-offs to average loans | .12 | .31 | 2.22 | 1.69 | 7.33 | |||||||||||
| NPAs to loans and foreclosed properties | .46 | .42 | .72 | 3.06 | 3.87 | |||||||||||
| NPAs to total assets | .29 | .26 | .42 | 1.88 | 2.30 | |||||||||||
| AVERAGE BALANCES($ in millions) | ||||||||||||||||
| Loans | $ | 5,298 | $ | 4,450 | $ | 4,254 | $ | 4,166 | $ | 4,307 | ||||||
| Investment securities | 2,368 | 2,274 | 2,190 | 2,089 | 1,999 | |||||||||||
| Earning assets | 7,834 | 6,880 | 6,649 | 6,547 | 6,785 | |||||||||||
| Total assets | 8,462 | 7,436 | 7,074 | 6,865 | 7,189 | |||||||||||
| Deposits | 7,055 | 6,228 | 6,027 | 5,885 | 6,275 | |||||||||||
| Shareholders’ equity | 869 | 720 | 732 | 582 | 557 | |||||||||||
| Common shares - Basic(thousands) | 65,488 | 60,588 | 58,787 | 57,857 | 39,943 | |||||||||||
| Common shares - Diluted(thousands) | 65,492 | 60,590 | 58,845 | 57,857 | 39,943 | |||||||||||
| AT YEAR END($ in millions) | ||||||||||||||||
| Loans | $ | 5,995 | $ | 4,672 | $ | 4,329 | $ | 4,175 | $ | 4,110 | ||||||
| Investment securities | 2,656 | 2,198 | 2,312 | 2,079 | 2,120 | |||||||||||
| Total assets | 9,626 | 7,567 | 7,425 | 6,802 | 6,983 | |||||||||||
| Deposits | 7,881 | 6,327 | 6,202 | 5,952 | 6,098 | |||||||||||
| Shareholders’ equity | 1,018 | 740 | 796 | 581 | 575 | |||||||||||
| Common shares outstanding(thousands) | 71,484 | 60,259 | 59,432 | 57,741 | 57,561 | |||||||||||
(1) Excludes merger-related charges and impairment losses on surplus bank property.(2) Net income (loss) 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) December 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.(5) 2015 ratio is preliminary.
| UNITED COMMUNITY BANKS, INC. |
| Non-GAAP Performance Measures Reconciliation |
| Selected Financial Information |
| 2015 | 2014 | For the Twelve Months Ended | |||||||||||||||||||||||||||||
| (in thousands, except per share | Fourth | Third | Second | First | Fourth | December 31, | |||||||||||||||||||||||||
| data; taxable equivalent) | Quarter | Quarter | Quarter | Quarter | Quarter | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
| Interest revenue reconciliation | |||||||||||||||||||||||||||||||
| Interest revenue - taxable equivalent | $ | 79,646 | $ | 71,120 | $ | 66,134 | $ | 62,909 | $ | 64,353 | $ | 279,809 | $ | 249,969 | $ | 247,323 | $ | 267,667 | $ | 304,308 | |||||||||||
| Taxable equivalent adjustment | (284 | ) | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (1,277 | ) | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | |||||||||||
| Interest revenue (GAAP) | $ | 79,362 | $ | 70,828 | $ | 65,808 | $ | 62,534 | $ | 63,955 | $ | 278,532 | $ | 248,432 | $ | 245,840 | $ | 265,977 | $ | 302,601 | |||||||||||
| Net interest revenue reconciliation | |||||||||||||||||||||||||||||||
| Net interest revenue - taxable equivalent | $ | 74,048 | $ | 65,718 | $ | 61,317 | $ | 57,617 | $ | 58,332 | $ | 258,700 | $ | 224,418 | $ | 219,641 | $ | 229,758 | $ | 238,670 | |||||||||||
| Taxable equivalent adjustment | (284 | ) | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (1,277 | ) | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | |||||||||||
| Net interest revenue (GAAP) | $ | 73,764 | $ | 65,426 | $ | 60,991 | $ | 57,242 | $ | 57,934 | $ | 257,423 | $ | 222,881 | $ | 218,158 | $ | 228,068 | $ | 236,963 | |||||||||||
| Total revenue reconciliation | |||||||||||||||||||||||||||||||
| Total operating revenue | $ | 95,032 | $ | 83,315 | $ | 77,683 | $ | 71,499 | $ | 71,355 | $ | 327,529 | $ | 271,472 | $ | 210,739 | $ | 223,370 | $ | 32,577 | |||||||||||
| Taxable equivalent adjustment | (284 | ) | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (1,277 | ) | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | |||||||||||
| Total revenue (GAAP) | $ | 94,748 | $ | 83,023 | $ | 77,357 | $ | 71,124 | $ | 70,957 | $ | 326,252 | $ | 269,935 | $ | 209,256 | $ | 221,680 | $ | 30,870 | |||||||||||
| Expense reconciliation | |||||||||||||||||||||||||||||||
| Expenses - operating | $ | 56,410 | $ | 48,525 | $ | 45,247 | $ | 43,061 | $ | 41,919 | $ | 193,243 | $ | 162,865 | $ | 174,304 | $ | 186,774 | $ | 261,599 | |||||||||||
| Merger-related and other charges | 9,078 | 5,744 | 3,173 | - | - | 17,995 | - | - | - | - | |||||||||||||||||||||
| Expenses (GAAP) | $ | 65,488 | $ | 54,269 | $ | 48,420 | $ | 43,061 | $ | 41,919 | $ | 211,238 | $ | 162,865 | $ | 174,304 | $ | 186,774 | $ | 261,599 | |||||||||||
| Income before taxes reconciliation | |||||||||||||||||||||||||||||||
| Income before taxes - operating | $ | 38,622 | $ | 34,790 | $ | 32,436 | $ | 28,438 | $ | 29,436 | $ | 134,286 | $ | 108,607 | $ | 36,435 | $ | 36,596 | $ | (229,022 | ) | ||||||||||
| Taxable equivalent adjustment | (284 | ) | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (1,277 | ) | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | |||||||||||
| Merger-related and other charges | (9,078 | ) | (5,744 | ) | (3,173 | ) | - | - | (17,995 | ) | - | - | - | - | |||||||||||||||||
| Income before taxes (GAAP) | $ | 29,260 | $ | 28,754 | $ | 28,937 | $ | 28,063 | $ | 29,038 | $ | 115,014 | $ | 107,070 | $ | 34,952 | $ | 34,906 | $ | (230,729 | ) | ||||||||||
| Income tax expense reconciliation | |||||||||||||||||||||||||||||||
| Income tax expense - operating | $ | 14,822 | $ | 13,064 | $ | 12,447 | $ | 10,768 | $ | 11,189 | $ | 51,101 | $ | 40,987 | $ | (236,705 | ) | $ | 2,740 | $ | (2,276 | ) | |||||||||
| Taxable equivalent adjustment | (284 | ) | (292 | ) | (326 | ) | (375 | ) | (398 | ) | (1,277 | ) | (1,537 | ) | (1,483 | ) | (1,690 | ) | (1,707 | ) | |||||||||||
| Merger-related and other charges, tax benefit | (3,486 | ) | (1,905 | ) | (997 | ) | - | - | (6,388 | ) | - | - | - | - | |||||||||||||||||
| Income tax expense (GAAP) | $ | 11,052 | $ | 10,867 | $ | 11,124 | $ | 10,393 | $ | 10,791 | $ | 43,436 | $ | 39,450 | $ | (238,188 | ) | $ | 1,050 | $ | (3,983 | ) | |||||||||
| Net income reconciliation | |||||||||||||||||||||||||||||||
| Net income - operating | $ | 23,800 | $ | 21,726 | $ | 19,989 | $ | 17,670 | $ | 18,247 | $ | 83,185 | $ | 67,620 | $ | 273,140 | $ | 33,856 | $ | (226,746 | ) | ||||||||||
| Merger-related and other charges, net of income tax benefit | (5,592 | ) | (3,839 | ) | (2,176 | ) | - | - | (11,607 | ) | - | - | - | - | |||||||||||||||||
| Net income (GAAP) | $ | 18,208 | $ | 17,887 | $ | 17,813 | $ | 17,670 | $ | 18,247 | $ | 71,578 | $ | 67,620 | $ | 273,140 | $ | 33,856 | $ | (226,746 | ) | ||||||||||
| Net income available to common shareholders reconciliation | |||||||||||||||||||||||||||||||
| Net income available to common shareholders - operating | $ | 23,775 | $ | 21,701 | $ | 19,972 | $ | 17,670 | $ | 18,247 | $ | 83,118 | $ | 67,181 | $ | 261,062 | $ | 21,708 | $ | (238,584 | ) | ||||||||||
| Merger-related and other charges, net of income tax benefit | (5,592 | ) | (3,839 | ) | (2,176 | ) | - | - | (11,607 | ) | - | - | - | - | |||||||||||||||||
| Net income available to common shareholders (GAAP) | $ | 18,183 | $ | 17,862 | $ | 17,796 | $ | 17,670 | $ | 18,247 | $ | 71,511 | $ | 67,181 | $ | 261,062 | $ | 21,708 | $ | (238,584 | ) | ||||||||||
| Diluted income per common share reconciliation | |||||||||||||||||||||||||||||||
| Diluted income per common share - operating | $ | .33 | $ | .33 | $ | .32 | $ | .29 | $ | .30 | $ | 1.27 | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | ||||||||||
| Merger-related and other charges | (.08 | ) | (.06 | ) | (.04 | ) | - | - | (.18 | ) | - | - | - | - | |||||||||||||||||
| Diluted income per common share (GAAP) | $ | .25 | $ | .27 | $ | .28 | $ | .29 | $ | .30 | $ | 1.09 | $ | 1.11 | $ | 4.44 | $ | .38 | $ | (5.97 | ) | ||||||||||
| Book value per common share reconciliation | |||||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 12.06 | $ | 12.08 | $ | 12.66 | $ | 12.53 | $ | 12.15 | $ | 12.06 | $ | 12.15 | $ | 11.26 | $ | 6.57 | $ | 6.47 | |||||||||||
| Effect of goodwill and other intangibles | 1.96 | 1.87 | .29 | .05 | .05 | 1.96 | .05 | .04 | .10 | .15 | |||||||||||||||||||||
| Book value per common share (GAAP) | $ | 14.02 | $ | 13.95 | $ | 12.95 | $ | 12.58 | $ | 12.20 | $ | 14.02 | $ | 12.20 | $ | 11.30 | $ | 6.67 | $ | 6.62 | |||||||||||
| Return on tangible common equity reconciliation | |||||||||||||||||||||||||||||||
| Return on tangible common equity - operating | 10.87 | % | 10.29 | % | 10.20 | % | 9.46 | % | 9.74 | % | 10.24 | % | 9.32 | % | 47.35 | % | 6.27 | % | (96.20 | )% | |||||||||||
| Effect of goodwill and other intangibles | (1.69 | ) | (.75 | ) | (.30 | ) | (.12 | ) | (.14 | ) | (.76 | ) | (.15 | ) | (.63 | ) | (.84 | ) | 2.63 | ||||||||||||
| Return on common equity - operating | 9.18 | 9.54 | 9.90 | 9.34 | 9.60 | 9.48 | 9.17 | 46.72 | 5.43 | (93.57 | ) | ||||||||||||||||||||
| Merger-related and other charges | (2.16 | ) | (1.69 | ) | (1.07 | ) | - | - | (1.33 | ) | - | - | - | - | |||||||||||||||||
| Return on common equity (GAAP) | 7.02 | % | 7.85 | % | 8.83 | % | 9.34 | % | 9.60 | % | 8.15 | % | 9.17 | % | 46.72 | % | 5.43 | % | (93.57 | )% | |||||||||||
| Return on assets reconciliation | |||||||||||||||||||||||||||||||
| Return on assets - operating | .99 | % | 1.00 | % | 1.00 | % | .94 | % | .96 | % | .98 | % | .91 | % | 3.86 | % | .49 | % | (3.15 | )% | |||||||||||
| Merger-related and other charges | (.23 | ) | (.18 | ) | (.11 | ) | - | - | (.13 | ) | - | - | - | - | |||||||||||||||||
| Return on assets (GAAP) | .76 | % | .82 | % | .89 | % | .94 | % | .96 | % | .85 | % | .91 | % | 3.86 | % | .49 | % | (3.15 | )% | |||||||||||
| Allowance for loan losses to loans reconciliation | |||||||||||||||||||||||||||||||
| Allowance for loan losses to loans, excl. acquired loans | 1.35 | % | 1.37 | % | 1.42 | % | 1.46 | % | 1.53 | % | 1.35 | % | 1.53 | % | 1.77 | % | 2.57 | % | 2.79 | % | |||||||||||
| Effect of removing acquired loans from ratio | (.21 | ) | (.22 | ) | (.06 | ) | - | - | (.21 | ) | - | - | - | - | |||||||||||||||||
| Allowance for loan losses to loans (GAAP) | 1.14 | % | 1.15 | % | 1.36 | % | 1.46 | % | 1.53 | % | 1.14 | % | 1.53 | % | 1.77 | % | 2.57 | % | 2.79 | % | |||||||||||
| Dividend payout ratio reconciliation | |||||||||||||||||||||||||||||||
| Dividend payout ratio - operating | 18.18 | % | 18.18 | % | 15.63 | % | 17.24 | % | 16.67 | % | 17.32 | % | 9.91 | % | - | % | - | % | - | % | |||||||||||
| Merger-related and other charges | 5.82 | 4.04 | 2.23 | - | - | 2.86 | - | - | - | - | |||||||||||||||||||||
| Dividend payout ratio (GAAP) | 24.00 | % | 22.22 | % | 17.86 | % | 17.24 | % | 16.67 | % | 20.18 | % | 9.91 | % | - | % | - | % | - | % | |||||||||||
| Efficiency ratio reconciliation | |||||||||||||||||||||||||||||||
| Efficiency ratio - operating | 59.41 | % | 57.81 | % | 57.59 | % | 59.15 | % | 57.47 | % | 58.51 | % | 58.26 | % | 63.14 | % | 65.43 | % | 92.27 | % | |||||||||||
| Merger-related and other charges | 9.56 | 6.84 | 4.04 | - | - | 5.45 | - | - | - | - | |||||||||||||||||||||
| Efficiency ratio (GAAP) | 68.97 | % | 64.65 | % | 61.63 | % | 59.15 | % | 57.47 | % | 63.96 | % | 58.26 | % | 63.14 | % | 65.43 | % | 92.27 | % | |||||||||||
| Average equity to assets reconciliation | |||||||||||||||||||||||||||||||
| Tangible common equity to assets | 9.29 | % | 9.77 | % | 9.83 | % | 9.82 | % | 9.72 | % | 9.66 | % | 9.60 | % | 7.55 | % | 5.54 | % | 3.74 | % | |||||||||||
| Effect of preferred equity | .11 | .11 | .08 | - | - | .08 | .07 | 2.76 | 2.84 | 3.88 | |||||||||||||||||||||
| Tangible equity to assets | 9.40 | 9.88 | 9.91 | 9.82 | 9.72 | 9.74 | 9.67 | 10.31 | 8.38 | 7.62 | |||||||||||||||||||||
| Effect of goodwill and other intangibles | 1.28 | .51 | .14 | .04 | .04 | .53 | .02 | .04 | .09 | .13 | |||||||||||||||||||||
| Equity to assets (GAAP) | 10.68 | % | 10.39 | % | 10.05 | % | 9.86 | % | 9.76 | % | 10.27 | % | 9.69 | % | 10.35 | % | 8.47 | % | 7.75 | % | |||||||||||
| Tangible common equity to risk-weighted assets reconciliation(1) | |||||||||||||||||||||||||||||||
| Tangible common equity to risk-weighted assets | 12.82 | % | 13.08 | % | 13.24 | % | 13.53 | % | 13.82 | % | 12.82 | % | 13.82 | % | 13.18 | % | 8.26 | % | 8.25 | % | |||||||||||
| Effect of other comprehensive income | .38 | .23 | .28 | .19 | .35 | .38 | .35 | .39 | .51 | (.03 | ) | ||||||||||||||||||||
| Effect of deferred tax limitation | (2.05 | ) | (2.24 | ) | (2.49 | ) | (2.86 | ) | (3.11 | ) | (2.05 | ) | (3.11 | ) | (4.26 | ) | - | - | |||||||||||||
| Effect of trust preferred | .08 | .08 | .63 | .67 | 1.00 | .08 | 1.00 | 1.04 | 1.15 | 1.18 | |||||||||||||||||||||
| Effect of preferred equity | .15 | .15 | .17 | - | - | .15 | - | 2.39 | 4.24 | 4.29 | |||||||||||||||||||||
| Basel III intangibles transition adjustment | .10 | .13 | .06 | .04 | - | .10 | - | - | - | - | |||||||||||||||||||||
| Basel III disallowed investments | (.03 | ) | (.03 | ) | (.03 | ) | (.04 | ) | - | (.03 | ) | - | - | - | - | ||||||||||||||||
| Tier I capital ratio (Regulatory) | 11.45 | % | 11.40 | % | 11.86 | % | 11.53 | % | 12.06 | % | 11.45 | % | 12.06 | % | 12.74 | % | 14.16 | % | 13.69 | % | |||||||||||
(1) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Fourth quarter 2015 ratios are preliminary.
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Loan Portfolio Composition at Period-End |
| 2015 | 2014 | Linked | Year over | |||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | Quarter | Year | ||||||||||||||||||||||
| (in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||||||||
| Owner occupied commercial RE | $ | 1,494 | $ | 1,479 | $ | 1,266 | $ | 1,167 | $ | 1,163 | $ | 15 | $ | 331 | ||||||||||||||
| Income producing commercial RE | 824 | 818 | 689 | 636 | 599 | 6 | 225 | |||||||||||||||||||||
| Commercial & industrial | 785 | 890 | 793 | 716 | 710 | (105 | ) | 75 | ||||||||||||||||||||
| Commercial construction | 342 | 319 | 238 | 230 | 196 | 23 | 146 | |||||||||||||||||||||
| Total commercial | 3,445 | 3,506 | 2,986 | 2,749 | 2,668 | (61 | ) | 777 | ||||||||||||||||||||
| Residential mortgage | 1,029 | 1,062 | 935 | 864 | 866 | (33 | ) | 163 | ||||||||||||||||||||
| Home equity lines of credit | 598 | 585 | 491 | 465 | 466 | 13 | 132 | |||||||||||||||||||||
| Residential construction | 352 | 334 | 299 | 291 | 299 | 18 | 53 | |||||||||||||||||||||
| Consumer installment | 571 | 537 | 463 | 419 | 373 | 34 | 198 | |||||||||||||||||||||
| Total loans | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | $ | 4,672 | (29 | ) | 1,323 | |||||||||||||||
| LOANS BY MARKET | ||||||||||||||||||||||||||||
| North Georgia | $ | 1,125 | $ | 1,130 | $ | 1,155 | $ | 1,150 | $ | 1,163 | (5 | ) | (38 | ) | ||||||||||||||
| Atlanta MSA | 1,259 | 1,266 | 1,275 | 1,254 | 1,243 | (7 | ) | 16 | ||||||||||||||||||||
| North Carolina | 549 | 546 | 533 | 539 | 553 | 3 | (4 | ) | ||||||||||||||||||||
| Coastal Georgia | 537 | 506 | 499 | 476 | 456 | 31 | 81 | |||||||||||||||||||||
| Gainesville MSA | 254 | 252 | 257 | 255 | 257 | 2 | (3 | ) | ||||||||||||||||||||
| East Tennessee | 504 | 511 | 525 | 281 | 280 | (7 | ) | 224 | ||||||||||||||||||||
| South Carolina | 819 | 783 | 35 | 30 | 30 | 36 | 789 | |||||||||||||||||||||
| Specialized Lending | 492 | 609 | 538 | 487 | 421 | (117 | ) | 71 | ||||||||||||||||||||
| Indirect auto | 456 | 421 | 357 | 316 | 269 | 35 | 187 | |||||||||||||||||||||
| Total loans | $ | 5,995 | $ | 6,024 | $ | 5,174 | $ | 4,788 | $ | 4,672 | (29 | ) | 1,323 | |||||||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Loan Portfolio Composition at Year-End |
| (in millions) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||
| Owner occupied commercial RE | $ | 1,494 | $ | 1,163 | $ | 1,134 | $ | 1,131 | $ | 1,112 | ||||||||||
| Income producing commercial RE | 824 | 599 | 623 | 682 | 710 | |||||||||||||||
| Commercial & industrial | 785 | 710 | 472 | 458 | 428 | |||||||||||||||
| Commercial construction | 342 | 196 | 149 | 155 | 164 | |||||||||||||||
| Total commercial | 3,445 | 2,668 | 2,378 | 2,426 | 2,414 | |||||||||||||||
| Residential mortgage | 1,029 | 866 | 875 | 829 | 835 | |||||||||||||||
| Home equity lines of credit | 598 | 466 | 441 | 385 | 300 | |||||||||||||||
| Residential construction | 352 | 299 | 328 | 382 | 448 | |||||||||||||||
| Consumer installment | 571 | 373 | 307 | 153 | 113 | |||||||||||||||
| Total loans | $ | 5,995 | $ | 4,672 | $ | 4,329 | $ | 4,175 | $ | 4,110 | ||||||||||
| LOANS BY MARKET | ||||||||||||||||||||
| North Georgia | $ | 1,125 | $ | 1,163 | $ | 1,240 | $ | 1,364 | $ | 1,426 | ||||||||||
| Atlanta MSA | 1,259 | 1,243 | 1,235 | 1,204 | 1,144 | |||||||||||||||
| North Carolina | 549 | 553 | 572 | 579 | 597 | |||||||||||||||
| Coastal Georgia | 537 | 456 | 423 | 400 | 346 | |||||||||||||||
| Gainesville MSA | 254 | 257 | 255 | 261 | 265 | |||||||||||||||
| East Tennessee | 504 | 280 | 280 | 283 | 256 | |||||||||||||||
| South Carolina | 819 | 30 | 4 | - | - | |||||||||||||||
| Specialized Lending | 492 | 421 | 124 | 46 | 76 | |||||||||||||||
| Indirect auto | 456 | 269 | 196 | 38 | - | |||||||||||||||
| Total loans | $ | 5,995 | $ | 4,672 | $ | 4,329 | $ | 4,175 | $ | 4,110 | ||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Credit Quality |
| Fourth Quarter 2015 | Third Quarter 2015 | Second Quarter 2015 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 7,036 | $ | 2,652 | $ | 9,688 | $ | 5,918 | $ | 882 | $ | 6,800 | $ | 4,878 | $ | 360 | $ | 5,238 | ||||||||||||||||||
| Income producing CRE | 2,595 | - | 2,595 | 1,238 | 4,084 | 5,322 | 883 | - | 883 | |||||||||||||||||||||||||||
| Commercial & industrial | 892 | - | 892 | 1,068 | - | 1,068 | 1,389 | - | 1,389 | |||||||||||||||||||||||||||
| Commercial construction | 328 | 437 | 765 | 256 | 657 | 913 | 59 | 382 | 441 | |||||||||||||||||||||||||||
| Total commercial | 10,851 | 3,089 | 13,940 | 8,480 | 5,623 | 14,103 | 7,209 | 742 | 7,951 | |||||||||||||||||||||||||||
| Residential mortgage | 8,555 | 1,242 | 9,797 | 8,847 | 1,454 | 10,301 | 8,599 | 1,373 | 9,972 | |||||||||||||||||||||||||||
| Home equity lines of credit | 851 | 80 | 931 | 890 | 87 | 977 | 940 | 54 | 994 | |||||||||||||||||||||||||||
| Residential construction | 1,398 | 472 | 1,870 | 929 | 505 | 1,434 | 1,358 | 187 | 1,545 | |||||||||||||||||||||||||||
| Consumer installment | 998 | - | 998 | 918 | - | 918 | 699 | - | 699 | |||||||||||||||||||||||||||
| Total NPAs | $ | 22,653 | $ | 4,883 | $ | 27,536 | $ | 20,064 | $ | 7,669 | $ | 27,733 | $ | 18,805 | $ | 2,356 | $ | 21,161 | ||||||||||||||||||
| Balance as a % of | ||||||||||||||||||||||||||||||||||||
| Unpaid Principal | 71.4 | % | 34.2 | % | 59.8 | % | 70.3 | % | 45.8 | % | 61.2 | % | 64.9 | % | 46.6 | % | 62.2 | % | ||||||||||||||||||
| NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||
| North Georgia | $ | 5,167 | $ | 1,612 | $ | 6,779 | $ | 6,403 | $ | 1,263 | $ | 7,666 | $ | 6,157 | $ | 657 | $ | 6,814 | ||||||||||||||||||
| Atlanta MSA | 3,023 | 625 | 3,648 | 1,750 | 1,122 | 2,872 | 2,361 | 135 | 2,496 | |||||||||||||||||||||||||||
| North Carolina | 5,289 | 183 | 5,472 | 4,564 | 9 | 4,573 | 4,746 | 690 | 5,436 | |||||||||||||||||||||||||||
| Coastal Georgia | 2,079 | - | 2,079 | 338 | 66 | 404 | 659 | - | 659 | |||||||||||||||||||||||||||
| Gainesville MSA | 307 | - | 307 | 325 | 3 | 328 | 864 | 22 | 886 | |||||||||||||||||||||||||||
| East Tennessee | 3,448 | 157 | 3,605 | 2,886 | 231 | 3,117 | 1,885 | 852 | 2,737 | |||||||||||||||||||||||||||
| South Carolina | 323 | 2,306 | 2,629 | 267 | 4,975 | 5,242 | - | - | - | |||||||||||||||||||||||||||
| Specialized Lending | 2,231 | - | 2,231 | 2,809 | - | 2,809 | 1,565 | - | 1,565 | |||||||||||||||||||||||||||
| Indirect auto | 786 | - | 786 | 722 | - | 722 | 568 | - | 568 | |||||||||||||||||||||||||||
| Total NPAs | $ | 22,653 | $ | 4,883 | $ | 27,536 | $ | 20,064 | $ | 7,669 | $ | 27,733 | $ | 18,805 | $ | 2,356 | $ | 21,161 | ||||||||||||||||||
| NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 20,064 | $ | 7,669 | $ | 27,733 | $ | 18,805 | $ | 2,356 | $ | 21,161 | $ | 19,015 | $ | 1,158 | $ | 20,173 | ||||||||||||||||||
| Acquisitions | - | (1,585 | ) | (1,585 | ) | - | 4,848 | 4,848 | - | 962 | 962 | |||||||||||||||||||||||||
| Loans placed on non-accrual | 10,768 | - | 10,768 | 8,923 | - | 8,923 | 6,552 | - | 6,552 | |||||||||||||||||||||||||||
| Payments received | (4,893 | ) | - | (4,893 | ) | (4,233 | ) | - | (4,233 | ) | (3,839 | ) | - | (3,839 | ) | |||||||||||||||||||||
| Loan charge-offs | (1,813 | ) | - | (1,813 | ) | (1,531 | ) | - | (1,531 | ) | (1,854 | ) | - | (1,854 | ) | |||||||||||||||||||||
| Foreclosures | (1,473 | ) | 1,497 | 24 | (1,900 | ) | 1,900 | - | (1,069 | ) | 1,069 | - | ||||||||||||||||||||||||
| Capitalized costs | - | - | - | - | 256 | 256 | - | - | - | |||||||||||||||||||||||||||
| Property sales | - | (2,968 | ) | (2,968 | ) | - | (1,916 | ) | (1,916 | ) | - | (895 | ) | (895 | ) | |||||||||||||||||||||
| Write downs | - | 11 | 11 | - | (79 | ) | (79 | ) | - | (9 | ) | (9 | ) | |||||||||||||||||||||||
| Net gains (losses) on sales | - | 259 | 259 | - | 304 | 304 | - | 71 | 71 | |||||||||||||||||||||||||||
| Ending Balance | $ | 22,653 | $ | 4,883 | $ | 27,536 | $ | 20,064 | $ | 7,669 | $ | 27,733 | $ | 18,805 | $ | 2,356 | $ | 21,161 | ||||||||||||||||||
| Fourth Quarter 2015 | Third Quarter 2015 | Second Quarter 2015 | ||||||||||||||||||||||
| 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 | $ | 861 | .23 | % | $ | 236 | .07 | % | $ | 285 | .09 | % | ||||||||||||
| Income producing CRE | (35 | ) | (.02 | ) | (106 | ) | (.06 | ) | (276 | ) | (.17 | ) | ||||||||||||
| Commercial & industrial | (719 | ) | (.34 | ) | 190 | .09 | (627 | ) | (.33 | ) | ||||||||||||||
| Commercial construction | 253 | .31 | 59 | .09 | 96 | .16 | ||||||||||||||||||
| Total commercial | 360 | .04 | 379 | .05 | (522 | ) | (.07 | ) | ||||||||||||||||
| Residential mortgage | (120 | ) | (.05 | ) | 433 | .18 | 787 | .35 | ||||||||||||||||
| Home equity lines of credit | 194 | .13 | 293 | .22 | 322 | .27 | ||||||||||||||||||
| Residential construction | 415 | .48 | (124 | ) | (.16 | ) | 107 | .14 | ||||||||||||||||
| Consumer installment | 453 | .33 | 436 | .35 | 284 | .26 | ||||||||||||||||||
| Total | $ | 1,302 | .09 | $ | 1,417 | .10 | $ | 978 | .08 | |||||||||||||||
| NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
| North Georgia | $ | 1,011 | .36 | % | $ | 1,352 | .47 | % | $ | 911 | .32 | % | ||||||||||||
| Atlanta MSA | 496 | .16 | 74 | .02 | 138 | .04 | ||||||||||||||||||
| North Carolina | 426 | .31 | 183 | .13 | 176 | .13 | ||||||||||||||||||
| Coastal Georgia | 47 | .04 | 19 | .02 | (40 | ) | (.03 | ) | ||||||||||||||||
| Gainesville MSA | (340 | ) | (.54 | ) | (236 | ) | (.36 | ) | (233 | ) | (.36 | ) | ||||||||||||
| East Tennessee | (326 | ) | (.26 | ) | 153 | .12 | 127 | .11 | ||||||||||||||||
| South Carolina | (474 | ) | (.24 | ) | (247 | ) | (.34 | ) | - | - | ||||||||||||||
| Specialized Lending | 253 | .18 | (42 | ) | (.03 | ) | (224 | ) | (.17 | ) | ||||||||||||||
| Indirect auto | 209 | .19 | 161 | .17 | 123 | .14 | ||||||||||||||||||
| Total | $ | 1,302 | .09 | $ | 1,417 | .10 | $ | 978 | .08 | |||||||||||||||
(1) Annualized.
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Statement of Income (Unaudited) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Interest revenue: | ||||||||||||||||
| Loans, including fees | $ | 63,442 | $ | 50,677 | $ | 223,256 | $ | 196,279 | ||||||||
| Investment securities, including tax exempt of $189, $180, $705 and $738 | 14,952 | 12,375 | 51,848 | 48,493 | ||||||||||||
| Deposits in banks and short-term investments | 968 | 903 | 3,428 | 3,660 | ||||||||||||
| Total interest revenue | 79,362 | 63,955 | 278,532 | 248,432 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW | 426 | 435 | 1,505 | 1,651 | ||||||||||||
| Money market | 1,006 | 868 | 3,466 | 3,060 | ||||||||||||
| Savings | 27 | 20 | 98 | 81 | ||||||||||||
| Time | 922 | 1,623 | 3,756 | 7,133 | ||||||||||||
| Total deposit interest expense | 2,381 | 2,946 | 8,825 | 11,925 | ||||||||||||
| Short-term borrowings | 85 | 96 | 364 | 2,160 | ||||||||||||
| Federal Home Loan Bank advances | 436 | 339 | 1,743 | 912 | ||||||||||||
| Long-term debt | 2,696 | 2,640 | 10,177 | 10,554 | ||||||||||||
| Total interest expense | 5,598 | 6,021 | 21,109 | 25,551 | ||||||||||||
| Net interest revenue | 73,764 | 57,934 | 257,423 | 222,881 | ||||||||||||
| Provision for credit losses | 300 | 1,800 | 3,700 | 8,500 | ||||||||||||
| Net interest revenue after provision for credit losses | 73,464 | 56,134 | 253,723 | 214,381 | ||||||||||||
| Fee revenue: | ||||||||||||||||
| Service charges and fees | 11,500 | 8,446 | 36,825 | 33,073 | ||||||||||||
| Mortgage loan and other related fees | 3,290 | 2,111 | 13,592 | 7,520 | ||||||||||||
| Brokerage fees | 1,058 | 1,176 | 5,041 | 4,807 | ||||||||||||
| Gains from sales of government guaranteed loans | 1,995 | 926 | 6,276 | 2,615 | ||||||||||||
| Securities gains, net | 378 | 208 | 2,255 | 4,871 | ||||||||||||
| Loss from prepayment of debt | - | - | (1,294 | ) | (4,446 | ) | ||||||||||
| Other | 3,063 | 1,956 | 9,834 | 7,114 | ||||||||||||
| Total fee revenue | 21,284 | 14,823 | 72,529 | 55,554 | ||||||||||||
| Total revenue | 94,748 | 70,957 | 326,252 | 269,935 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and employee benefits | 32,939 | 26,592 | 116,688 | 100,941 | ||||||||||||
| Communications and equipment | 4,735 | 3,153 | 15,273 | 12,523 | ||||||||||||
| Occupancy | 4,666 | 3,448 | 15,372 | 13,513 | ||||||||||||
| Advertising and public relations | 978 | 802 | 3,667 | 3,461 | ||||||||||||
| Postage, printing and supplies | 1,293 | 1,086 | 4,273 | 3,542 | ||||||||||||
| Professional fees | 3,331 | 2,034 | 10,175 | 7,907 | ||||||||||||
| FDIC assessments and other regulatory charges | 1,463 | 883 | 5,106 | 4,792 | ||||||||||||
| Merger-related and other charges | 9,078 | - | 17,995 | - | ||||||||||||
| Other | 7,005 | 3,921 | 22,689 | 16,186 | ||||||||||||
| Total operating expenses | 65,488 | 41,919 | 211,238 | 162,865 | ||||||||||||
| Net income before income taxes | 29,260 | 29,038 | 115,014 | 107,070 | ||||||||||||
| Income tax expense | 11,052 | 10,791 | 43,436 | 39,450 | ||||||||||||
| Net income | 18,208 | 18,247 | 71,578 | 67,620 | ||||||||||||
| Preferred stock dividends and discount accretion | 25 | - | 67 | 439 | ||||||||||||
| Net income available to common shareholders | $ | 18,183 | $ | 18,247 | $ | 71,511 | $ | 67,181 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | .25 | $ | .30 | $ | 1.09 | $ | 1.11 | ||||||||
| Diluted | .25 | .30 | 1.09 | 1.11 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 72,135 | 60,830 | 65,488 | 60,588 | ||||||||||||
| Diluted | 72,140 | 60,833 | 65,492 | 60,590 | ||||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Balance Sheet(Unaudited) |
| December 31, | December 31, | |||||||
| (in thousands, except share and per share data) | 2015 | 2014 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 86,912 | $ | 77,180 | ||||
| Interest-bearing deposits in banks | 153,451 | 89,074 | ||||||
| Short-term investments | - | 26,401 | ||||||
| Cash and cash equivalents | 240,363 | 192,655 | ||||||
| Securities available for sale | 2,291,511 | 1,782,734 | ||||||
| Securities held to maturity (fair value $371,658 and $425,233) | 364,696 | 415,267 | ||||||
| Mortgage loans held for sale | 24,231 | 13,737 | ||||||
| Loans, net of unearned income | 5,995,441 | 4,672,119 | ||||||
| Less allowance for loan losses | (68,448 | ) | (71,619 | ) | ||||
| Loans, net | 5,926,993 | 4,600,500 | ||||||
| Premises and equipment, net | 178,165 | 159,390 | ||||||
| Bank owned life insurance | 105,493 | 81,294 | ||||||
| Accrued interest receivable | 25,786 | 20,103 | ||||||
| Net deferred tax asset | 197,613 | 215,503 | ||||||
| Derivative financial instruments | 20,082 | 20,599 | ||||||
| Goodwill and other intangible assets | 147,420 | 3,641 | ||||||
| Other assets | 103,755 | 61,563 | ||||||
| Total assets | $ | 9,626,108 | $ | 7,566,986 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Demand | $ | 2,204,755 | $ | 1,574,317 | ||||
| NOW | 1,975,884 | 1,504,887 | ||||||
| Money market | 1,599,637 | 1,273,283 | ||||||
| Savings | 471,129 | 292,308 | ||||||
| Time: | ||||||||
| Less than $100,000 | 830,301 | 748,478 | ||||||
| Greater than $100,000 | 452,502 | 508,228 | ||||||
| Brokered | 346,881 | 425,011 | ||||||
| Total deposits | 7,881,089 | 6,326,512 | ||||||
| Short-term borrowings | 16,640 | 6,000 | ||||||
| Federal Home Loan Bank advances | 430,125 | 270,125 | ||||||
| Long-term debt | 165,620 | 129,865 | ||||||
| Derivative financial instruments | 28,825 | 31,997 | ||||||
| Unsettled securities purchases | 2 | 5,425 | ||||||
| Accrued expenses and other liabilities | 85,522 | 57,485 | ||||||
| Total liabilities | 8,607,823 | 6,827,409 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $1 par value; 10,000,000 shares authorized; Series H; $1,000 stated value; 9,992 and 0 shares issued and outstanding | 9,992 | - | ||||||
| Common stock, $1 par value; 100,000,000 shares authorized; 66,198,477 and 50,178,605 shares issued and outstanding | 66,198 | 50,178 | ||||||
| Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 5,285,516 and 10,080,787 shares issued and outstanding | 5,286 | 10,081 | ||||||
| Common stock issuable; 458,953 and 357,983 shares | 6,779 | 5,168 | ||||||
| Capital surplus | 1,286,361 | 1,080,508 | ||||||
| Accumulated deficit | (330,879 | ) | (387,568 | ) | ||||
| Accumulated other comprehensive loss | (25,452 | ) | (18,790 | ) | ||||
| Total shareholders' equity | 1,018,285 | 739,577 | ||||||
| Total liabilities and shareholders' equity | $ | 9,626,108 | $ | 7,566,986 | ||||
| UNITED COMMUNITY BANKS, INC. |
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Three Months Ended December 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) | $ | 5,975,491 | $ | 63,509 | 4.22 | % | $ | 4,620,517 | $ | 50,883 | 4.37 | % | ||||||||||||
| Taxable securities(3) | 2,575,846 | 14,763 | 2.29 | 2,202,986 | 12,195 | 2.21 | ||||||||||||||||||
| Tax-exempt securities(1)(3) | 30,748 | 309 | 4.02 | 18,579 | 295 | 6.35 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 210,341 | 1,065 | 2.03 | 170,703 | 980 | 2.30 | ||||||||||||||||||
| Total interest-earning assets | 8,792,426 | 79,646 | 3.60 | 7,012,785 | 64,353 | 3.65 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (69,743 | ) | (72,534 | ) | ||||||||||||||||||||
| Cash and due from banks | 88,057 | 73,973 | ||||||||||||||||||||||
| Premises and equipment | 192,040 | 160,049 | ||||||||||||||||||||||
| Other assets(3) | 554,974 | 391,097 | ||||||||||||||||||||||
| Total assets | $ | 9,557,754 | $ | 7,565,370 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 1,865,305 | 426 | .09 | $ | 1,481,414 | 435 | .12 | ||||||||||||||||
| Money market | 1,897,364 | 1,006 | .21 | 1,433,680 | 868 | .24 | ||||||||||||||||||
| Savings | 465,993 | 27 | .02 | 291,163 | 20 | .03 | ||||||||||||||||||
| Time less than $100,000 | 848,469 | 617 | .29 | 761,850 | 814 | .42 | ||||||||||||||||||
| Time greater than $100,000 | 469,301 | 390 | .33 | 520,937 | 763 | .58 | ||||||||||||||||||
| Brokered time deposits | 258,698 | (85 | ) | (.13 | ) | 273,706 | 46 | .07 | ||||||||||||||||
| Total interest-bearing deposits | 5,805,130 | 2,381 | .16 | 4,762,750 | 2,946 | .25 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 40,148 | 85 | .84 | 24,750 | 96 | 1.54 | ||||||||||||||||||
| Federal Home Loan Bank advances | 191,484 | 436 | .90 | 193,549 | 339 | .69 | ||||||||||||||||||
| Long-term debt | 165,620 | 2,696 | 6.46 | 129,865 | 2,640 | 8.07 | ||||||||||||||||||
| Total borrowed funds | 397,252 | 3,217 | 3.21 | 348,164 | 3,075 | 3.50 | ||||||||||||||||||
| Total interest-bearing liabilities | 6,202,382 | 5,598 | .36 | 5,110,914 | 6,021 | .47 | ||||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||
| Non-interest-bearing deposits | 2,223,011 | 1,620,635 | ||||||||||||||||||||||
| Other liabilities | 111,757 | 95,679 | ||||||||||||||||||||||
| Total liabilities | 8,537,150 | 6,827,228 | ||||||||||||||||||||||
| Shareholders' equity | 1,020,604 | 738,142 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 9,557,754 | $ | 7,565,370 | ||||||||||||||||||||
| Net interest revenue | $ | 74,048 | $ | 58,332 | ||||||||||||||||||||
| Net interest-rate spread | 3.24 | % | 3.18 | % | ||||||||||||||||||||
| Net interest margin(4) | 3.34 | % | 3.31 | % | ||||||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $7.45 million in 2015 and pretax unrealized gains of $8.59 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 Twelve Months Ended December 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) | $ | 5,297,687 | $ | 223,713 | 4.22 | % | $ | 4,450,268 | $ | 197,039 | 4.43 | % | ||||||||||||
| Taxable securities(3) | 2,342,533 | 51,143 | 2.18 | 2,255,084 | 47,755 | 2.12 | ||||||||||||||||||
| Tax-exempt securities(1)(3) | 25,439 | 1,154 | 4.54 | 19,279 | 1,209 | 6.27 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 168,494 | 3,799 | 2.25 | 155,803 | 3,966 | 2.55 | ||||||||||||||||||
| Total interest-earning assets | 7,834,153 | 279,809 | 3.57 | 6,880,434 | 249,969 | 3.63 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (71,001 | ) | (75,237 | ) | ||||||||||||||||||||
| Cash and due from banks | 81,244 | 67,818 | ||||||||||||||||||||||
| Premises and equipment | 174,835 | 161,391 | ||||||||||||||||||||||
| Other assets(3) | 442,878 | 401,240 | ||||||||||||||||||||||
| Total assets | $ | 8,462,109 | $ | 7,435,646 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 1,563,911 | 1,505 | .10 | $ | 1,396,373 | 1,651 | .12 | ||||||||||||||||
| Money market | 1,678,765 | 3,466 | .21 | 1,389,837 | 3,060 | .22 | ||||||||||||||||||
| Savings | 372,414 | 98 | .03 | 277,351 | 81 | .03 | ||||||||||||||||||
| Time less than $100,000 | 788,737 | 2,840 | .36 | 811,846 | 3,636 | .45 | ||||||||||||||||||
| Time greater than $100,000 | 480,623 | 1,983 | .41 | 551,027 | 3,373 | .61 | ||||||||||||||||||
| Brokered time deposits | 269,162 | (1,067 | ) | (.40 | ) | 293,657 | 124 | .04 | ||||||||||||||||
| Total interest-bearing deposits | 5,153,612 | 8,825 | .17 | 4,720,091 | 11,925 | .25 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 49,301 | 364 | .74 | 74,541 | 2,160 | 2.90 | ||||||||||||||||||
| Federal Home Loan Bank advances | 250,404 | 1,743 | .70 | 175,481 | 912 | .52 | ||||||||||||||||||
| Long-term debt | 139,979 | 10,177 | 7.27 | 129,865 | 10,554 | 8.13 | ||||||||||||||||||
| Total borrowed funds | 439,684 | 12,284 | 2.79 | 379,887 | 13,626 | 3.59 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,593,296 | 21,109 | .38 | 5,099,978 | 25,551 | .50 | ||||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||
| Non-interest-bearing deposits | 1,901,521 | 1,507,944 | ||||||||||||||||||||||
| Other liabilities | 97,890 | 107,523 | ||||||||||||||||||||||
| Total liabilities | 7,592,707 | 6,715,445 | ||||||||||||||||||||||
| Shareholders' equity | 869,402 | 720,201 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 8,462,109 | $ | 7,435,646 | ||||||||||||||||||||
| Net interest revenue | $ | 258,700 | $ | 224,418 | ||||||||||||||||||||
| Net interest-rate spread | 3.19 | % | 3.13 | % | ||||||||||||||||||||
| Net interest margin(4) | 3.30 | % | 3.26 | % | ||||||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $11.4 million in 2015 and pretax unrealized gains of $3.36 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.