• Operating earnings per diluted share of 33 cents, up 14 percent from first quarter of 2015
  • Operating return on assets of 1.00 percent - compared to .94 percent a year ago
  • Operating return on tangible common equity of 10.91 percent - up from 9.46 percent a year ago
  • Loans up $111 million from the fourth quarter of 2015, or 7 percent annualized
  • Core transaction deposits up $113 million from the fourth quarter of 2015, or 9 percent annualized

BLAIRSVILLE, Ga., April 27, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today reported first quarter results reflecting strong credit quality, capital management, profitability and growth.  Net operating income was $23.9 million, or 33 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share, in the first quarter of 2015.

Net operating income and net operating income per diluted share exclude merger-related and other charges.  Including those charges, first quarter 2016 net income was $22.3 million, or 31 cents per diluted share, compared with $17.7 million, or 29 cents per diluted share in the first quarter of 2015.

At March 31, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.3 percent; Total Risk-Based of 12.3 percent; Common Equity Tier 1 Risk-Based of 11.3 percent; and, Tier 1 Leverage of 8.4 percent.

"Our first quarter results continue to demonstrate the growing potential of United and our focus on increasing returns to our shareholders. Our performance reflects our emphasis on maintaining a high-quality balance sheet, increasing profitability and generating growth," said Jimmy Tallent, chairman and chief executive officer.  "It underscores our ability to prudently grow our loan portfolio and high-quality, low-cost core deposits, maintain top-quartile credit quality, and expand fee revenue while maintaining operating expense discipline, and making strategic investments in technology, geographic market positioning, products and enhanced expertise.

"First quarter loan production was a solid $562 million," Tallent added.  "Loan growth was $111 million, or 7 percent annualized, in line with our 2016 target of a mid-to-upper-single-digit increase.  Our community banks originated $347 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $145 million.  Helping fund these loans was quarter-to-quarter core transaction deposit growth of $113 million, or 9 percent annualized.  Core deposits comprise 90 percent of total deposits, one of the best ratios in the country."

First quarter taxable-equivalent net interest revenue totaled $75.2 million, up $1.2 million from the fourth quarter of 2015 and up $17.6 million from the first quarter of 2015.  This increase reflects strong loan and core deposit growth, and an increase in the net interest margin.  The increase from the first quarter of 2015 also reflects net interest revenue from the Palmetto and First National Bank acquisitions.

The taxable-equivalent net interest margin of 3.41 percent reflected a seven basis point increase from the fourth quarter of 2015, and a 10 basis point increase from a year ago. The increase from the fourth quarter reflects higher yields on the loan and investment securities portfolios, offset slightly by a one basis point increase in the rate paid on interest-bearing liabilities.  Yields on floating rate loans and investment securities benefited from the full quarterly impact of the Federal Reserve Bank's December 2015 rate hike.

The first quarter provision for credit losses was negative $200,000 compared with positive provisions of $300,000 during the fourth quarter of 2015 and $1.8 million during the first quarter of 2015.  In addition to continued strong credit quality and a low overall level of net charge-offs, the first quarter negative provision reflects an overall improvement in a number of our largest troubled debt restructurings and the related release of reserves assigned specifically to them.

"Our credit quality indicators are very favorable, and our outlook is for this to continue, which will result in driving down our allowance for loan losses requirement," stated Tallent.  "While we strive to maintain a conservative allowance for loan losses, our recent loss history and improving credit measures continue to require us to decrease our allowance each quarter."

First quarter net charge-offs totaled $2.1 million compared with $1.3 million during the fourth quarter of 2015, and $2.6 million during the first quarter of 2015.  Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 from the first and second quarters of 2015.  Nonperforming assets were 0.28 percent of total assets at March 31, 2016, compared with 0.29 percent at December 31, 2015 and 0.26 percent a year ago.

First quarter fee revenue totaled $18.6 million, a decrease of $2.7 million from the fourth quarter of 2015. The decrease was mostly seasonal and primarily the result of a $1.4 million decline in service charges and fees, a $758,000 decline in gains from sales of SBA loans, and a $541,000 decline in other fee revenue.  First quarter fee revenue increased $2.9 million from the first quarter of 2015, primarily due to acquisitions.

During the first quarter of 2016, sales of $13.0 million in SBA loans resulted in net gains of $1.2 million. This compares with sales of $25.1 million and net gains of $2.0 million during the fourth quarter of 2015, and sales of $13.0 million and net gains of $1.1 million during the first quarter of 2015.

Operating expenses, excluding merger-related and other charges, were $55.2 million in the first quarter of 2016.  This compares to $56.4 million in the fourth quarter of 2015 and $43.1 million in the first quarter of 2015.

"The linked quarter decrease in operating expenses is primarily related to Palmetto cost savings, and is only part of the story," commented Tallent. "What also is important to our future growth are the substantial investments we made during the quarter in talented revenue producers.  To leverage the United brand and gain share in high-growth areas, during the first quarter we added eight new mortgage lenders in our metro markets. In our specialized lending areas, primarily in our SBA lending business we added 11 revenue producers. We also added three lenders in our loan production office in Charleston, South Carolina, and opened a new loan production office in Macon, Georgia.

"Consistent with this strategy, on April 4, 2016, we entered into a merger agreement with Tidelands Bancshares, Inc., the holding company for Tidelands Bank which is based in Mt. Pleasant, South Carolina," Tallent said.  "Tidelands Bank will merge into United Community Bank and operate under the United brand on the South Carolina coast, including Charleston, Hilton Head and Myrtle Beach.

"Following the opening of a loan production office in Charleston in the fourth quarter of 2015, this strategic purchase completes a two-step plan to launch and accelerate growth in attractive coastal South Carolina markets," said Tallent.  "The Tidelands agreement is expected to close in the third quarter and will be immediately accretive to operating earnings.  I am excited to have Thomas Lyles and his team join the United family.

"In the first quarter we maintained strong momentum and, with our talented bankers at work, we expect to do so again in the second quarter and throughout the remainder of 2016," Tallent said. "Our talented bankers are executing our plans as we maintain a high-quality balance sheet, increase profitability and generate growth."

Conference CallUnited will hold a conference call today, Wednesday, April 27, 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 79143447.  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. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia, with $9.8 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 135 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in providing personalized community banking services to individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management.  United Community Banks is consistently recognized for its outstanding customer service by respected national research firms.  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 HarborThis 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 2015 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors."  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

UNITED COMMUNITY BANKS, INC.                          
Financial Highlights                          
Selected Financial Information                          
                           
                      First  
    2016     2015   Quarter  
(in thousands, except per share   First       Fourth       Third       Second       First     2016-2015  
data; fully taxable equivalent) Quarter   Quarter   Quarter   Quarter   Quarter     Change  
INCOME SUMMARY                          
Interest revenue (FTE) $ 80,991     $ 79,646     $ 71,120     $ 66,134     $ 62,909          
Interest expense   5,769       5,598       5,402       4,817       5,292          
Net interest revenue (FTE)   75,222       74,048       65,718       61,317       57,617       31   %  
Provision for credit losses   (200 )     300       700       900       1,800          
Fee revenue   18,606       21,284       18,297       17,266       15,682       19      
Total revenue (FTE)   94,028       95,032       83,315       77,683       71,499       32      
Expenses - operating  (1)   55,232       56,410       48,525       45,247       43,061       28      
Income before income tax expense - (FTE) operating (1)   38,796       38,622       34,790       32,436       28,438       36      
Income tax expense - (FTE) operating  (1)   14,852       14,822       13,064       12,447       10,768       38      
Net income - operating   (1)   23,944       23,800       21,726       19,989       17,670       36      
Preferred dividends and discount accretion   21       25       25       17       -          
Net income available to common shareholders - operating   (1)   23,923       23,775       21,701       19,972       17,670       35      
Merger-related and other charges, net of income tax benefit   1,649       5,592       3,839       2,176       -          
Net income available to common   shareholders - GAAP $ 22,274     $ 18,183     $ 17,862     $ 17,796     $ 17,670       26      
                           
PERFORMANCE MEASURES                          
Per common share:                          
Diluted income - operating  (1) $ .33     $ .33     $ .33     $ .32     $ .29       14      
Diluted income - GAAP   .31       .25       .27       .28       .29       7      
Cash dividends declared   .07       .06       .06       .05       .05          
Book value   14.35       14.02       13.95       12.95       12.58       14      
Tangible book value (3)   12.40       12.06       12.08       12.66       12.53       (1 )    
                           
Key performance ratios:                          
Return on tangible common equity - operating (1)(2)(3)(4)   10.91   %   10.87   %   10.29   %   10.20   %   9.46   %    
Return on common equity - operating (1)(2)(4)   9.20       9.18       9.54       9.90       9.34          
Return on common equity - GAAP (2)(4)   8.57       7.02       7.85       8.83       9.34          
Return on assets - operating (1)(4)   1.00       .99       1.00       1.00       .94          
Return on assets - GAAP (4)   .93       .76       .82       .89       .94          
Dividend payout ratio - operating (1)   21.21       18.18       18.18       15.63       17.24          
Dividend payout ratio - GAAP   22.58       24.00       22.22       17.86       17.24          
Net interest margin (FTE) (4)   3.41       3.34       3.26       3.30       3.31          
Efficiency ratio - operating  (1)   59.10       59.41       57.81       57.59       59.15          
Efficiency ratio - GAAP   61.94       68.97       64.65       61.63       59.15          
Average equity to average assets   10.72       10.68       10.39       10.05       9.86          
Average tangible equity to average assets (3)   9.41       9.40       9.88       9.91       9.82          
Average tangible common equity to   average assets (3)   9.32       9.29       9.77       9.83       9.82          
Tangible common equity to risk-weighted   assets (3)(5)(6)   12.77       12.82       13.08       13.24       13.53          
                           
ASSET QUALITY                          
Nonperforming loans $ 22,419     $ 22,653     $ 20,064     $ 18,805     $ 19,015       18      
Foreclosed properties   5,163       4,883       7,669       2,356       1,158       346      
Total nonperforming assets (NPAs)   27,582       27,536       27,733       21,161       20,173       37      
Allowance for loan losses   66,310       68,448       69,062       70,129       70,007       (5 )    
Net charge-offs   2,138       1,302       1,417       978       2,562       (17 )    
Allowance for loan losses to loans   1.09   %   1.14   %   1.15   %   1.36   %   1.46   %      
Net charge-offs to average loans (4)   .14       .09       .10       .08       .22          
NPAs to loans and foreclosed properties   .45       .46       .46       .41       .42          
NPAs to total assets   .28       .29       .29       .26       .26          
                           
AVERAGE BALANCES ($ in millions)                          
Loans $ 6,004     $ 5,975     $ 5,457     $ 5,017     $ 4,725       27      
Investment securities   2,718       2,607       2,396       2,261       2,203       23      
Earning assets   8,876       8,792       8,009       7,444       7,070       26      
Total assets   9,634       9,558       8,634       8,017       7,617       26      
Deposits   7,947       8,028       7,135       6,669       6,369       25      
Shareholders' equity   1,033       1,021       897       806       751       38      
Common shares - basic (thousands)   72,162       72,135       66,294       62,549       60,905       18      
Common shares - diluted (thousands)   72,166       72,140       66,300       62,553       60,909       18      
                           
AT PERIOD END ($ in millions)                          
Loans $ 6,106     $ 5,995     $ 6,024     $ 5,174     $ 4,788       28      
Investment securities   2,757       2,656       2,457       2,322       2,201       25      
Total assets   9,781       9,616       9,404       8,237       7,655       28      
Deposits   7,960       7,873       7,897       6,800       6,430       24      
Shareholders' equity   1,034       1,018       1,013       827       764       35      
Common shares outstanding (thousands)   71,544       71,484       71,472       62,700       60,309       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) All periods are calculated under Basel III rules, which became effective January 1, 2015.  (6)  First quarter 2016 ratio is preliminary.  
                           

 

UNITED COMMUNITY BANKS, INC.                      
Non-GAAP Performance Measures Reconciliation                      
Selected Financial Information                      
                       
                       
    2016     2015    
(in thousands, except per share   First       Fourth       Third       Second       First      
data; fully taxable equivalent) Quarter   Quarter   Quarter   Quarter   Quarter    
                       
Interest revenue reconciliation                      
Interest revenue - taxable equivalent $ 80,991     $ 79,646     $ 71,120     $ 66,134     $ 62,909      
Taxable equivalent adjustment   (270 )     (284 )     (292 )     (326 )     (375 )    
Interest revenue (GAAP) $ 80,721     $ 79,362     $ 70,828     $ 65,808     $ 62,534      
                       
Net interest revenue reconciliation                      
Net interest revenue - taxable equivalent $ 75,222     $ 74,048     $ 65,718     $ 61,317     $ 57,617      
Taxable equivalent adjustment   (270 )     (284 )     (292 )     (326 )     (375 )    
Net interest revenue (GAAP) $ 74,952     $ 73,764     $ 65,426     $ 60,991     $ 57,242      
                       
Total revenue reconciliation                      
Total operating revenue $ 94,028     $ 95,032     $ 83,315     $ 77,683     $ 71,499      
Taxable equivalent adjustment   (270 )     (284 )     (292 )     (326 )     (375 )    
Total revenue (GAAP) $ 93,758     $ 94,748     $ 83,023     $ 77,357     $ 71,124      
                       
Expense reconciliation                      
Expenses - operating $ 55,232     $ 56,410     $ 48,525     $ 45,247     $ 43,061      
Merger-related and other charges   2,653       9,078       5,744       3,173       -      
Expenses (GAAP) $ 57,885     $ 65,488     $ 54,269     $ 48,420     $ 43,061      
                       
Income before taxes reconciliation                      
Income before taxes - operating $ 38,796     $ 38,622     $ 34,790     $ 32,436     $ 28,438      
Taxable equivalent adjustment   (270 )     (284 )     (292 )     (326 )     (375 )    
Merger-related and other charges   (2,653 )     (9,078 )     (5,744 )     (3,173 )     -      
Income before taxes (GAAP) $ 35,873     $ 29,260     $ 28,754     $ 28,937     $ 28,063      
                       
Income tax expense reconciliation                      
Income tax expense - operating $ 14,852     $ 14,822     $ 13,064     $ 12,447     $ 10,768      
Taxable equivalent adjustment   (270 )     (284 )     (292 )     (326 )     (375 )    
Merger-related and other charges, tax benefit   (1,004 )     (3,486 )     (1,905 )     (997 )     -      
Income tax expense (GAAP) $ 13,578     $ 11,052     $ 10,867     $ 11,124     $ 10,393      
                       
Net income reconciliation                      
Net income - operating $ 23,944     $ 23,800     $ 21,726     $ 19,989     $ 17,670      
Merger-related and other charges, net of income tax benefit   (1,649 )     (5,592 )     (3,839 )     (2,176 )     -      
Net income (GAAP) $ 22,295     $ 18,208     $ 17,887     $ 17,813     $ 17,670      
                       
Net income available to common shareholders reconciliation                      
Net income available to common shareholders - operating $ 23,923     $ 23,775     $ 21,701     $ 19,972     $ 17,670      
Merger-related and other charges, net of income tax benefit   (1,649 )     (5,592 )     (3,839 )     (2,176 )     -      
Net income available to common shareholders (GAAP) $ 22,274     $ 18,183     $ 17,862     $ 17,796     $ 17,670      
                       
Diluted income per common share reconciliation                      
Diluted income per common share - operating $ .33     $ .33     $ .33     $ .32     $ .29      
Merger-related and other charges   (.02 )     (.08 )     (.06 )     (.04 )     -      
Diluted income per common share (GAAP) $ .31     $ .25     $ .27     $ .28     $ .29      
                       
Book value per common share reconciliation                      
Tangible book value per common share $ 12.40     $ 12.06     $ 12.08     $ 12.66     $ 12.53      
Effect of goodwill and other intangibles   1.95       1.96       1.87       .29       .05      
Book value per common share (GAAP) $ 14.35     $ 14.02     $ 13.95     $ 12.95     $ 12.58      
                       
Return on tangible common equity reconciliation                      
Return on tangible common equity - operating   10.91   %   10.87   %   10.29   %   10.20   %   9.46   %  
Effect of goodwill and other intangibles   (1.71 )     (1.69 )     (.75 )     (.30 )     (.12 )    
Return on common equity - operating   9.20       9.18       9.54       9.90       9.34      
Merger-related and other charges   (.63 )     (2.16 )     (1.69 )     (1.07 )     -      
Return on common equity (GAAP)   8.57   %   7.02   %   7.85   %   8.83   %   9.34   %  
                       
Return on assets reconciliation                      
Return on assets - operating   1.00   %   .99   %   1.00   %   1.00   %   .94   %  
Merger-related  and other charges   (.07 )     (.23 )     (.18 )     (.11 )     -      
Return on assets (GAAP)   .93   %   .76   %   .82   %   .89   %   .94   %  
                       
Dividend payout ratio reconciliation                      
Dividend payout ratio - operating   21.21   %   18.18   %   18.18   %   15.63   %   17.24   %  
Merger-related and other charges   1.37       5.82       4.04       2.23       -      
Dividend payout ratio (GAAP)   22.58   %   24.00   %   22.22   %   17.86   %   17.24   %  
                       
Efficiency ratio reconciliation                      
Efficiency ratio - operating   59.10   %   59.41   %   57.81   %   57.59   %   59.15   %  
Merger-related and other charges   2.84       9.56       6.84       4.04       -      
Efficiency ratio (GAAP)   61.94   %   68.97   %   64.65   %   61.63   %   59.15   %  
                       
Average equity to assets reconciliation                      
Tangible common equity to assets   9.32   %   9.29   %   9.77   %   9.83   %   9.82   %  
Effect of preferred equity   .09       .11       .11       .08       -      
Tangible equity to assets   9.41       9.40       9.88       9.91       9.82      
Effect of goodwill and other intangibles   1.31       1.28       .51       .14       .04      
Equity to assets (GAAP)   10.72   %   10.68   %   10.39   %   10.05   %   9.86   %  
                       
Tangible common equity to risk-weighted assets reconciliation (1)                      
Tangible common equity to risk-weighted assets   12.77   %   12.82   %   13.08   %   13.24   %   13.53   %  
Effect of other comprehensive income   .25       .38       .23       .28       .19      
Effect of deferred tax limitation   (1.85 )     (2.05 )     (2.24 )     (2.49 )     (2.86 )    
Effect of trust preferred   .08       .08       .08       .63       .67      
Effect of preferred equity   -       .15       .15       .17       -      
Basel III intangibles transition adjustment   .07       .10       .13       .06       .04      
Basel III disallowed investments   -       (.03 )     (.03 )     (.03 )     (.04 )    
Tier I capital ratio (Regulatory)   11.32   %   11.45   %   11.40   %   11.86   %   11.53   %  
                       
(1)  First quarter 2016 ratios are preliminary.                      
                       

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights                    
Loan Portfolio Composition at Period-End            
                     
                     
    2016   2015
      First       Fourth       Third       Second       First  
(in millions)   Quarter   Quarter   Quarter   Quarter   Quarter
LOANS BY CATEGORY                    
Owner occupied commercial RE   $ 1,434     $ 1,494     $ 1,479     $ 1,266     $ 1,167  
Income producing commercial RE     880       824       818       689       636  
Commercial & industrial     855       785       890       793       716  
Commercial construction     354       342       319       238       230  
Total commercial     3,523       3,445       3,506       2,986       2,749  
Residential mortgage     1,032       1,029       1,062       935       864  
Home equity lines of credit     604       598       585       491       465  
Residential construction     348       352       334       299       291  
Consumer installment     599       571       537       463       419  
Total loans   $ 6,106     $ 5,995     $ 6,024     $ 5,174     $ 4,788  
                     
LOANS BY MARKET                    
North Georgia   $ 1,097     $ 1,125     $ 1,130     $ 1,155     $ 1,150  
Atlanta MSA     1,257       1,259       1,266       1,275       1,254  
North Carolina     543       549       546       533       539  
Coastal Georgia     543       537       506       499       476  
Gainesville MSA     248       254       252       257       255  
East Tennessee     495       504       511       525       281  
South Carolina     821       819       783       35       30  
Specialized Lending     628       492       609       538       487  
Indirect auto     474       456       421       357       316  
Total loans   $ 6,106     $ 5,995     $ 6,024     $ 5,174     $ 4,788  
                     

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights                    
Loan Portfolio Composition at Period-End            
                     
                     
    2016   2015   Linked Quarter Change   Year over Year Change
      First       Fourth       First      
(in millions)   Quarter   Quarter   Quarter    
LOANS BY CATEGORY                    
Owner occupied commercial RE   $ 1,434     $ 1,494     $ 1,167     $ (60 )   $ 267  
Income producing commercial RE     880       824       636       56       244  
Commercial & industrial     855       785       716       70       139  
Commercial construction     354       342       230       12       124  
Total commercial     3,523       3,445       2,749       78       774  
Residential mortgage     1,032       1,029       864       3       168  
Home equity lines of credit     604       598       465       6       139  
Residential construction     348       352       291       (4 )     57  
Consumer installment     599       571       419       28       180  
Total loans   $ 6,106     $ 5,995     $ 4,788       111       1,318  
                     
LOANS BY MARKET                    
North Georgia   $ 1,097     $ 1,125     $ 1,150       (28 )     (53 )
Atlanta MSA     1,257       1,259       1,254       (2 )     3  
North Carolina     543       549       539       (6 )     4  
Coastal Georgia     543       537       476       6       67  
Gainesville MSA     248       254       255       (6 )     (7 )
East Tennessee     495       504       281       (9 )     214  
South Carolina     821       819       30       2       791  
Specialized Lending     628       492       487       136       141  
Indirect auto     474       456       316       18       158  
Total loans   $ 6,106     $ 5,995     $ 4,788       111       1,318  
                     

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights                  
Credit Quality                  
                   
                   
    First Quarter 2016
      Nonperforming       Foreclosed       Total  
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY            
Owner occupied CRE   $ 6,775     $ 2,864     $ 9,639  
Income producing CRE     2,959       -       2,959  
Commercial & industrial     978       -       978  
Commercial construction     266       152       418  
Total commercial     10,978       3,016       13,994  
Residential mortgage     8,037       1,587       9,624  
Home equity lines of credit     1,198       125       1,323  
Residential construction     1,122       435       1,557  
Consumer installment     1,084       -       1,084  
Total NPAs   $ 22,419     $ 5,163     $ 27,582  
Balance as a % of                    
Unpaid Principal     69.3 %     38.2 %     60.1 %
                   
NONPERFORMING ASSETS BY MARKET              
North Georgia   $ 5,353     $ 1,233     $ 6,586  
Atlanta MSA     2,796       902       3,698  
North Carolina     4,860       559       5,419  
Coastal Georgia     1,696       121       1,817  
Gainesville MSA     250       -       250  
East Tennessee     3,470       351       3,821  
South Carolina     935       1,997       2,932  
Specialized Lending     2,186       -       2,186  
Indirect auto     873       -       873  
Total NPAs   $ 22,419     $ 5,163     $ 27,582  
                   
                   
NONPERFORMING ASSETS ACTIVITY              
Beginning Balance   $ 22,653     $ 4,883     $ 27,536  
Acquisitions     -       -       -  
Loans placed on non-accrual     4,771       -       4,771  
Payments received     (1,812 )     -       (1,812 )
Loan charge-offs     (1,679 )     -       (1,679 )
Foreclosures     (1,514 )     1,590       76  
Capitalized costs     -       -       -  
Property sales     -       (1,524 )     (1,524 )
Write downs     -       (7 )     (7 )
Net gains (losses) on sales     -       221       221  
Ending Balance   $ 22,419     $ 5,163     $ 27,582  
                   

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights                  
Credit Quality                  
                   
                   
    Fourth Quarter 2015
      Nonperforming       Foreclosed       Total  
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY            
Owner occupied CRE   $ 7,036     $ 2,652     $ 9,688  
Income producing CRE     2,595       -       2,595  
Commercial & industrial     892       -       892  
Commercial construction     328       437       765  
Total commercial     10,851       3,089       13,940  
Residential mortgage     8,555       1,242       9,797  
Home equity lines of credit     851       80       931  
Residential construction     1,398       472       1,870  
Consumer installment     998       -       998  
Total NPAs   $ 22,653     $ 4,883     $ 27,536  
Balance as a % of                    
Unpaid Principal     71.4 %     34.2 %     59.8 %
                   
NONPERFORMING ASSETS BY MARKET              
North Georgia   $ 5,167     $ 1,612     $ 6,779  
Atlanta MSA     3,023       625       3,648  
North Carolina     5,289       183       5,472  
Coastal Georgia     2,079       -       2,079  
Gainesville MSA     307       -       307  
East Tennessee     3,448       157       3,605  
South Carolina     323       2,306       2,629  
Specialized Lending     2,231       -       2,231  
Indirect auto     786       -       786  
Total NPAs   $ 22,653     $ 4,883     $ 27,536  
                   
                   
NONPERFORMING ASSETS ACTIVITY              
Beginning Balance   $ 20,064     $ 7,669     $ 27,733  
Acquisitions     -       (1,585 )     (1,585 )
Loans placed on non-accrual     10,768       -       10,768  
Payments received     (4,893 )     -       (4,893 )
Loan charge-offs     (1,813 )     -       (1,813 )
Foreclosures     (1,473 )     1,497       24  
Capitalized costs     -       -       -  
Property sales     -       (2,968 )     (2,968 )
Write downs     -       11       11  
Net gains (losses) on sales     -       259       259  
Ending Balance   $ 22,653     $ 4,883     $ 27,536  
                   

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights                  
Credit Quality                  
                   
                   
    Third Quarter 2015
      Nonperforming       Foreclosed       Total  
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY            
Owner occupied CRE   $ 5,918     $ 882     $ 6,800  
Income producing CRE     1,238       4,084       5,322  
Commercial & industrial     1,068       -       1,068  
Commercial construction     256       657       913  
Total commercial     8,480       5,623       14,103  
Residential mortgage     8,847       1,454       10,301  
Home equity lines of credit     890       87       977  
Residential construction     929       505       1,434  
Consumer installment     918       -       918  
Total NPAs   $ 20,064     $ 7,669     $ 27,733  
Balance as a % of                    
Unpaid Principal     70.3 %     45.8 %     61.2 %
                   
NONPERFORMING ASSETS BY MARKET              
North Georgia   $ 6,403     $ 1,263     $ 7,666  
Atlanta MSA     1,750       1,122       2,872  
North Carolina     4,564       9       4,573  
Coastal Georgia     338       66       404  
Gainesville MSA     325       3       328  
East Tennessee     2,886       231       3,117  
South Carolina     267       4,975       5,242  
Specialized Lending     2,809       -       2,809  
Indirect auto     722       -       722  
Total NPAs   $ 20,064     $ 7,669     $ 27,733  
                   
                   
NONPERFORMING ASSETS ACTIVITY              
Beginning Balance   $ 18,805     $ 2,356     $ 21,161  
Acquisitions     -       4,848       4,848  
Loans placed on non-accrual     8,923       -       8,923  
Payments received     (4,233 )     -       (4,233 )
Loan charge-offs     (1,531 )     -       (1,531 )
Foreclosures     (1,900 )     1,900       -  
Capitalized costs     -       256       256  
Property sales     -       (1,916 )     (1,916 )
Write downs     -       (79 )     (79 )
Net gains (losses) on sales     -       304       304  
Ending Balance   $ 20,064     $ 7,669     $ 27,733  
                   

 

UNITED COMMUNITY BANKS, INC.                          
Financial Highlights                                    
Credit Quality                                    
                                     
    First Quarter 2016   Fourth Quarter 2015   Third 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   $ 304     .08 %   $ 861     .23 %   $ 236     .07 %
Income producing CRE     211     .10       (35 )   (.02     (106 )   (.06 )
Commercial & industrial     283     .14       (719 )   (.34 )     190     .09  
Commercial construction     286     .33       253     .31       59     .09  
Total commercial     1,084     .13       360     .04       379     .05  
Residential mortgage     50     .02       (120 )   (.05 )     433     .18  
Home equity lines of credit     632     .43       194     .13       293     .22  
Residential construction     (103 )   (.12     415     .48       (124 )   (.16 )
Consumer installment     475     .33       453     .33       436     .35  
Total   $ 2,138     .14     $ 1,302     .09     $ 1,417     .10  
                                     
                                     
NET CHARGE-OFFS BY MARKET                                
North Georgia   $ 913     .33 %   $ 1,011     .36 %   $ 1,352     .47 %
Atlanta MSA     (25 )   (.01 )     496     .16       74     .02  
North Carolina     382     .28       426     .31       183     .13  
Coastal Georgia     196     .15       47     .04       19     .02  
Gainesville MSA     98     .16       (340 )   (.54 )     (236 )   (.36 )
East Tennessee     378     .31       (326 )   (.26     153     .12  
South Carolina     (16 )   (.01     (474 )   (.24     (247 )   (.34
Specialized Lending     4     -       253     .18       (42 )   (.03
Indirect auto     208     .19       209     .19       161     .17  
Total   $ 2,138     .14     $ 1,302     .09     $ 1,417     .10  
                                 
(1)  Annualized.

 

UNITED COMMUNITY BANKS, INC.          
Consolidated Statement of Income (Unaudited)          
           
    Three Months Ended  
    March 31,  
(in thousands, except per share data)     2016       2015    
           
Interest revenue:          
Loans, including fees   $ 63,976     $ 49,664    
Investment securities, including tax exempt of $166 and $158     15,788       12,058    
Deposits in banks and short-term investments     957       812    
Total interest revenue     80,721       62,534    
           
Interest expense:          
Deposits:          
NOW     485       394    
Money market     1,108       673    
Savings     29       20    
Time     642       1,109    
Total deposit interest expense     2,264       2,196    
Short-term borrowings     87       98    
Federal Home Loan Bank advances     733       392    
Long-term debt     2,685       2,606    
Total interest expense     5,769       5,292    
Net interest revenue     74,952       57,242    
Provision for credit losses     (200 )     1,800    
Net interest revenue after provision for credit losses     75,152       55,442    
           
Fee revenue:          
Service charges and fees     10,126       7,615    
Mortgage loan and other related fees     3,289       2,755    
Brokerage fees     1,053       1,551    
Gains from sales of government guaranteed loans     1,237       1,141    
Securities gains, net     379       1,539    
Loss from prepayment of debt     -       (1,038 )  
Other     2,522       2,119    
Total fee revenue     18,606       15,682    
Total revenue     93,758       71,124    
           
Operating expenses:          
Salaries and employee benefits     33,062       26,446    
Communications and equipment     4,290       3,271    
Occupancy     4,723       3,278    
Advertising and public relations     864       750    
Postage, printing and supplies     1,280       938    
Professional fees     2,700       1,919    
FDIC assessments and other regulatory charges     1,524       1,209    
Amortization of intangibles     1,010       242    
Merger-related and other charges     2,653       -    
Other     5,779       5,008    
Total operating expenses     57,885       43,061    
Net income before income taxes     35,873       28,063    
Income tax expense     13,578       10,393    
Net income     22,295       17,670    
Preferred stock dividends and discount accretion     21       -    
Net income available to common shareholders   $ 22,274     $ 17,670    
           
Earnings per common share:          
Basic   $ .31     $ .29    
      .31       .29    
Weighted average common shares outstanding:          
Basic     72,162       60,905    
Diluted     72,166       60,909    
           

 

UNITED COMMUNITY BANKS, INC.            
Consolidated Balance Sheet (Unaudited)            
             
    March 31,   December 31,   March 31,
(in thousands, except share and per share data)     2016       2015       2015  
             
ASSETS            
Cash and due from banks   $ 93,821     $ 86,912     $ 77,493  
Interest-bearing deposits in banks     88,995       153,451       82,269  
Short-term investments     -       -       25,902  
Cash and cash equivalents     182,816       240,363       185,664  
Securities available for sale     2,405,467       2,291,511       1,801,973  
Securities held to maturity (fair value $363,092, $371,658 and $413,550)     351,700       364,696       399,228  
Mortgage loans held for sale     26,578       24,231       15,723  
Loans, net of unearned income     6,106,189       5,995,441       4,787,689  
Less allowance for loan losses     (66,310 )     (68,448 )     (70,007 )
Loans, net     6,039,879       5,926,993       4,717,682  
Premises and equipment, net     180,690       178,165       159,036  
Bank owned life insurance     105,803       105,493       81,490  
Accrued interest receivable     25,893       25,786       20,154  
Net deferred tax asset     180,371       197,613       201,898  
Derivative financial instruments     23,488       20,082       20,291  
Goodwill and other intangible assets     146,409       147,420       3,399  
Other assets     112,237       94,075       47,998  
Total assets   $ 9,781,331     $ 9,616,428     $ 7,654,536  
LIABILITIES AND SHAREHOLDERS' EQUITY            
Liabilities:            
Deposits:            
Demand   $ 2,370,842     $ 2,204,755     $ 1,694,755  
NOW     1,794,241       1,975,884       1,420,956  
Money market     1,630,565       1,599,637       1,306,421  
Savings     491,542       471,129       312,013  
Time     1,233,647       1,282,803       1,206,278  
Brokered     439,486       338,985       489,141  
Total deposits     7,960,323       7,873,193       6,429,564  
Repurchase agreements     -       16,640       -  
Federal Home Loan Bank advances     510,125       430,125       270,125  
Long-term debt     163,955       163,836       112,901  
Derivative financial instruments     31,374       28,825       29,276  
Accrued expenses and other liabilities     81,829       85,524       48,965  
Total liabilities     8,747,606       8,598,143       6,890,831  
Shareholders' equity:            
Preferred stock, $1 par value; 10,000,000 shares authorized;            
Series H; $1,000 stated value; 0, 9,992 and 0 shares issued and outstanding     -       9,992       -  
Common stock, $1 par value; 100,000,000 shares authorized;            
66,258,777, 66,198,477 and 50,228,075 shares issued and outstanding     66,259       66,198       50,228  
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;            
5,285,516, 5,285,516 and 10,080,787 shares issued and outstanding     5,286       5,286       10,081  
Common stock issuable; 496,515, 458,953 and 400,369 shares     6,700       6,779       5,895  
Capital surplus     1,286,884       1,286,361       1,081,110  
Accumulated deficit     (313,646 )     (330,879 )     (372,933 )
Accumulated other comprehensive loss     (17,758 )     (25,452 )     (10,676 )
Total shareholders' equity     1,033,725       1,018,285       763,705  
Total liabilities and shareholders' equity   $ 9,781,331     $ 9,616,428     $ 7,654,536  
             

 

UNITED COMMUNITY BANKS, INC.                        
Average Consolidated Balance Sheets and Net Interest Analysis                  
For the Three Months Ended March 31,                        
                         
  2016     2015    
    Average       Avg.       Average       Avg.    
(dollars in thousands, fully taxable equivalent)   Balance       Interest   Rate       Balance       Interest   Rate    
Assets:                        
Interest-earning assets:                        
Loans, net of unearned income (1)(2) $ 6,003,568     $ 64,044   4.29 %   $ 4,725,304     $ 49,865   4.28 %  
Taxable securities (3)   2,688,564       15,622   2.32       2,186,756       11,900   2.18    
Tax-exempt securities (1)(3)   29,744       272   3.66       16,236       259   6.38    
Federal funds sold and other interest-earning assets   153,759       1,053   2.74       141,414       885   2.50    
                         
Total interest-earning assets     8,875,635       80,991   3.67       7,069,710       62,909   3.60    
Non-interest-earning assets:                        
Allowance for loan losses   (68,473 )             (72,192 )          
Cash and due from banks   85,635               79,025            
Premises and equipment   180,090               159,502            
Other assets (3)   561,261               381,300            
Total assets $ 9,634,148             $ 7,617,345            
                         
Liabilities and Shareholders' Equity:                        
Interest-bearing liabilities:                        
Interest-bearing deposits:                        
NOW $ 1,886,472       485   .10     $ 1,475,913       394   .11    
Money market   1,840,584       1,108   .24       1,466,913       673   .19    
Savings   480,238       29   .02       300,344       20   .03    
Time   1,259,689       817   .26       1,231,705       1,388   .46    
Brokered time deposits   233,213       (175 ) (.30     273,327       (279 ) (.41  
Total interest-bearing deposits   5,700,196       2,264   .16       4,748,202       2,196   .19    
                         
Federal funds purchased and other borrowings   34,906       87   1.00       36,145       98   1.10    
Federal Home Loan Bank advances   346,169       733   .85       239,181       392   .66    
Long-term debt   165,419       2,685   6.53       127,740       2,606   8.27    
Total borrowed funds   546,494       3,505   2.58       403,066       3,096   3.12    
                         
Total interest-bearing liabilities   6,246,690       5,769   .37       5,151,268       5,292   .42    
Non-interest-bearing liabilities:                        
Non-interest-bearing deposits   2,247,041               1,620,984            
Other liabilities   107,320               94,207            
Total liabilities   8,601,051               6,866,459            
Shareholders' equity   1,033,097               750,886            
Total liabilities and shareholders' equity $ 9,634,148             $ 7,617,345            
                         
Net interest revenue     $ 75,222             $ 57,617        
Net interest-rate spread       3.30 %         3.18 %  
                         
Net interest margin (4)       3.41 %         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 $2.20 million in 2016 and pretax unrealized gains of $10.8    
million in 2015 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.            
                         
For more information:Rex S. SchuetteChief Financial Officer                                                                                   (706) 781-2266Rex_Schuette@ucbi.com

Primary Logo