×

United Community Banks, Inc. Reports Net Income of $18.2 Million for Fourth Quarter 2014, Up 15 Percent From a Year Ago

  • Earnings per diluted share of 30 cents, up 36 percent from fourth quarter of 2013
  • Loans up $103 million, or 9 percent annualized
  • Net interest margin stabilizes at 3.31 percent
  • Operating efficiency improves to 57.5 percent on strong revenue growth

BLAIRSVILLE, Ga., Jan. 21, 2015 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (Nasdaq:UCBI) ("United") today reported net income of $18.2 million, or 30 cents per diluted share, for the fourth quarter of 2014. Earnings per share were up 36 percent from a year ago. The increases reflect strong loan growth, a stable net interest margin and growth in fee revenue.

For the full year of 2014, United reported net income of $67.6 million, or $1.11 per diluted share.

"Our fourth quarter results mark a strong ending to a very good year," said Jimmy Tallent, president and chief executive officer. "Strong loan growth and a steady net interest margin increased net interest revenue by $1.37 million over the third quarter. Our return on assets rose to 96 basis points, one basis point above the third quarter and closing in on our goal of 1 percent. Also, our return on equity was 9.6 percent, up 19 basis points from the third quarter and 208 basis points from a year ago. We continue to improve operating efficiency, and achieved solid positive operating leverage in the fourth quarter."

Tallent continued, "Fourth quarter net loan growth of $103 million was driven by solid production across all of our markets. Our specialized lending business, which includes health care, corporate, SBA, asset-based and commercial real estate lending, was the largest contributor to our growth this quarter with $74.6 million. We also saw solid growth in our Coastal Georgia market."

Fourth quarter taxable equivalent net interest revenue totaled $58.3 million, up $1.37 million from the third quarter and up $2.45 million from the fourth quarter of 2013. The taxable equivalent net interest margin was 3.31 percent, down one basis point from the third quarter but up five basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue, while minimizing exposure to changes in interest rates, have been top priorities for growing earnings," said Tallent. "We've been able to hold the margin steady in the low 3.30 percent range following our second quarter balance sheet management activities, which included restructuring the securities portfolio, interest rate hedges and wholesale borrowings. We expect our margin to remain at the current level into 2015."

The fourth quarter provision for credit losses was $1.8 million, down $200,000 from the third quarter and down $1.2 million from the fourth quarter of 2013. Fourth quarter net charge-offs were $2.51 million compared with $3.16 million in the third quarter and $4.45 million a year ago. Nonperforming assets at quarter-end were $19.6 million, down 10 percent from the third quarter and 37 percent from a year ago. Nonperforming assets at quarter-end represented .26 percent of total assets, compared to .29 percent last quarter and .42 percent a year ago.

Fourth quarter fee revenue totaled $14.8 million, up $411,000 from the third quarter and $1.30 million from the fourth quarter of 2013. The increase from a year ago resulted primarily from the growing SBA lending business and related gains on sales of SBA loans. Gains totaled $926,000 in the fourth quarter of 2014, and $945,000 in the third quarter. There were no gains from SBA loan sales in the fourth quarter of 2013.

Service charges and fees, and debit card interchange fees, were up from both the third quarter of 2014 and the fourth quarter of 2013, more than offsetting a decline in overdraft fees. Mortgage fees were down $67,000 from the third quarter, but up $398,000 from a year ago. The increase from the fourth quarter of 2013 reflects United's commitment to growing the mortgage business. Closed mortgage loans totaled $77.4 million in the fourth quarter compared with $84.2 million in the third quarter and $55.5 million in the fourth quarter of 2013.

Operating expenses were $41.9 million in the fourth quarter compared to $41.4 million in the third quarter and $41.6 million a year ago. The increase was mostly due to higher salaries and employee benefit costs for the respective periods of $900,000 and $1.8 million, respectively, reflecting investments in new businesses and markets, as well as higher production and performance incentives and $350,000 in severance costs for the fourth quarter 2014.

Other expense was up $1.3 million from the third quarter and $1.2 million from a year ago. The increase reflects a $492,000 charge for the reimbursement of claimed interest related to the first period of the company's loss sharing agreement with the FDIC, as well as higher support costs associated with the increase in lending activity. Professional fees were lower this quarter due to the resolution and release of a $1.2 million litigation reserve related to a previously disclosed legal matter and FDIC assessment costs declined due to further improvement in credit measures. There were several non-core items in the quarter that were mostly offsetting, including the litigation reserve release, FDIC reimbursement of prior period interest and severance costs.

"Our focus on growing revenue while controlling costs is driving the improvement in operating efficiency and positive operating leverage," Tallent said. "Our operating efficiency ratio improved to 57.5 percent in the fourth quarter, compared to 58.0 percent in the third quarter."

At December 31, 2014, capital ratios were as follows: Tier 1 Risk-Based of 12.1 percent; Total Risk-Based of 13.3 percent; Tier 1 Common Risk-Based of 11.1 percent; and, Tier 1 Leverage of 8.7 percent.

"In 2014 we invested significantly in revenue generation while controlling operating costs," Tallent said. "I am excited about 2015 as these investments hit their stride to grow our businesses that will drive earnings and shareholder returns. As always, we will continue to look for opportunities to invest in people."

Conference Call

United will hold a conference call today, Thursday, January 21, 2015, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 61257382. The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.

United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.6 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. 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 2013 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
Fourth
2014 2013 Quarter
(in thousands, except per share Fourth Third Second First Fourth 2014-2013
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter Change
INCOME SUMMARY
Interest revenue $ 64,353 $ 63,338 $ 61,783 $ 60,495 $ 61,695
Interest expense 6,021 6,371 6,833 6,326 5,816
Net interest revenue 58,332 56,967 54,950 54,169 55,879 4%
Provision for credit losses 1,800 2,000 2,200 2,500 3,000
Fee revenue 14,823 14,412 14,143 12,176 13,519 10
Total revenue 71,355 69,379 66,893 63,845 66,398
Operating expenses 41,919 41,364 40,532 39,050 41,614 1
Income before income taxes 29,436 28,015 26,361 24,795 24,784 19
Income tax expense (benefit) 11,189 10,399 10,004 9,395 8,873
Net income 18,247 17,616 16,357 15,400 15,911 15
Preferred dividends and discount accretion -- -- -- 439 2,912
Net income available to common shareholders $ 18,247 $ 17,616 $ 16,357 $ 14,961 $ 12,999 40
PERFORMANCE MEASURES
Per common share:
Diluted income $ .30 $ .29 $ .27 $ .25 $ .22 36
Book value 12.20 12.15 11.94 11.66 11.30 8
Tangible book value (2) 12.15 12.10 11.91 11.63 11.26 8
Key performance ratios:
Return on common equity (1)(3) 9.60% 9.41% 8.99% 8.64% 7.52%
Return on assets (3) .96 .95 .88 .85 .86
Net interest margin (3) 3.31 3.32 3.21 3.21 3.26
Efficiency ratio 57.47 57.96 58.65 59.05 60.02
Average equity to average assets 9.76 9.85 9.61 9.52 11.62
Average tangible equity to average assets (2) 9.72 9.83 9.58 9.50 11.59
Average tangible common equity to average assets (2) 9.72 9.83 9.58 9.22 8.99
Tangible common equity to risk--weighted assets (2) 13.82 14.10 13.92 13.63 13.18
ASSET QUALITY *
Non-performing loans $ 17,881 $ 18,745 $ 20,724 $ 25,250 $ 26,819
Foreclosed properties 1,726 3,146 2,969 5,594 4,221
Total non-performing assets (NPAs) 19,607 21,891 23,693 30,844 31,040
Allowance for loan losses 71,619 71,928 73,248 75,223 76,762
Net charge-offs 2,509 3,155 4,175 4,039 4,445
Allowance for loan losses to loans 1.53% 1.57% 1.66% 1.73% 1.77%
Net charge-offs to average loans (3) .22 .28 .38 .38 .41
NPAs to loans and foreclosed properties .42 .48 .54 .71 .72
NPAs to total assets .26 .29 .32 .42 .42
AVERAGE BALANCES ($ in millions)
Loans $ 4,621 $ 4,446 $ 4,376 $ 4,356 $ 4,315 7
Investment securities 2,222 2,231 2,326 2,320 2,280 (3)
Earning assets 7,013 6,820 6,861 6,827 6,823 3
Total assets 7,565 7,374 7,418 7,384 7,370 3
Deposits 6,383 6,143 6,187 6,197 6,190 3
Shareholders' equity 738 726 713 703 856 (14)
Common shares - basic (thousands) 60,830 60,776 60,712 60,059 59,923
Common shares - diluted (thousands) 60,833 60,779 60,714 60,061 59,925
AT PERIOD END ($ in millions)
Loans * $ 4,672 $ 4,569 $ 4,410 $ 4,356 $ 4,329 8
Investment securities 2,198 2,222 2,190 2,302 2,312 (5)
Total assets 7,567 7,526 7,352 7,398 7,425 2
Deposits 6,327 6,241 6,164 6,248 6,202 2
Shareholders' equity 740 736 722 704 796 (7)
Common shares outstanding (thousands) 60,259 60,248 60,139 60,092 59,432
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization. (3) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Twelve
Months Ended YTD
(in thousands, except per share December 31, 2014-2013
data; taxable equivalent) 2014 2013 Change
INCOME SUMMARY
Interest revenue $ 249,969 $ 247,323
Interest expense 25,551 27,682
Net interest revenue 224,418 219,641 2%
Provision for credit losses 8,500 65,500
Fee revenue 55,554 56,598 (2)
Total revenue 271,472 210,739
Operating expenses 162,865 174,304 (7)
Income before income taxes 108,607 36,435
Income tax expense (benefit) 40,987 (236,705)
Net income 67,620 273,140
Preferred dividends and discount accretion 439 12,078
Net income available to common shareholders $ 67,181 $ 261,062
PERFORMANCE MEASURES
Per common share:
Diluted income $ 1.11 $ 4.44
Book value 12.20 11.30 8
Tangible book value (2) 12.15 11.26 8
Key performance ratios:
Return on common equity (1)(3) 9.17% 46.72%
Return on assets (3) .91 3.86
Net interest margin (3) 3.26 3.30
Efficiency ratio 58.26 63.14
Average equity to average assets 9.69 10.35
Average tangible equity to average assets (2) 9.67 10.31
Average tangible common equity to average assets (2) 9.60 7.55
Tangible common equity to risk-weighted assets (2) 13.82 13.17
ASSET QUALITY *
Non-performing loans $ 17,881 $ 26,819
Foreclosed properties 1,726 4,221
Total non-performing assets (NPAs) 19,607 31,040
Allowance for loan losses 71,619 76,762
Net charge-offs 13,878 93,710
Allowance for loan losses to loans 1.53% 1.77%
Net charge-offs to average loans (3) .31 2.22
NPAs to loans and foreclosed properties .42 .72
NPAs to total assets .26 .42
AVERAGE BALANCES ($ in millions)
Loans $ 4,450 $ 4,254 5
Investment securities 2,274 2,190 4
Earning assets 6,880 6,649 3
Total assets 7,436 7,074 5
Deposits 6,228 6,027 3
Shareholders' equity 720 732 (2)
Common shares - basic (thousands) 60,588 58,787
Common shares - diluted (thousands) 60,590 58,845
AT PERIOD END ($ in millions)
Loans * $ 4,672 $ 4,329 8
Investment securities 2,198 2,312 (5)
Total assets 7,567 7,425 2
Deposits 6,327 6,202 2
Shareholders' equity 740 796 (7)
Common shares outstanding (thousands) 60,259 59,432
(1) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (2) Excludes effect of acquisition related intangibles and associated amortization.
(3) Annualized.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data;
taxable equivalent) 2014 2013 2012 2011 2010
INCOME SUMMARY
Net interest revenue $ 224,418 $ 219,641 $ 229,758 $ 238,670 $ 244,637
Operating provision for credit losses (1) 8,500 65,500 62,500 251,000 234,750
Operating fee revenue 55,554 56,598 56,112 44,907 46,963
Total operating revenue (1) 271,472 210,739 223,370 32,577 56,850
Operating expenses (2) 162,865 174,304 186,774 261,599 242,952
Loss on sale of nonperforming assets -- -- -- -- 45,349
Operating income (loss) from continuing operations before taxes 108,607 36,435 36,596 (229,022) (231,451)
Operating income taxes 40,987 (236,705) 2,740 (2,276) 73,218
Net operating income (loss) from continuing operations 67,620 273,140 33,856 (226,746) (304,669)
Noncash goodwill impairment charges -- -- -- -- (210,590)
Fraud loss provision and subsequent recovery, net of tax benefit -- -- -- -- 11,750
Net income (loss) from discontinued operations -- -- -- -- (101)
Gain from sale of subsidiary, net of income taxes and selling costs -- -- -- -- 1,266
Net income (loss) 67,620 273,140 33,856 (226,746) (502,344)
Preferred dividends and discount accretion 439 12,078 12,148 11,838 10,316
Net income (loss) available to common shareholders $ 67,181 $ 261,062 $ 21,708 $ (238,584) $ (512,660)
PERFORMANCE MEASURES
Per common share:
Diluted operating earnings (loss) from continuing operations (1)(2) $ 1.11 $ 4.44 $ .38 $ (5.97) $ (16.64)
Diluted earnings (loss) from continuing operations 1.11 4.44 .38 (5.97) (27.15)
Diluted earnings (loss) 1.11 4.44 .38 (5.97) (27.09)
Cash dividends declared .11 -- -- -- --
Book value 12.20 11.30 6.67 6.62 15.40
Tangible book value (4) 12.15 11.26 6.57 6.47 14.80
Key performance ratios:
Return on common equity (3) 9.17% 46.72% 5.43% (93.57)% (85.08)%
Return on assets .91 3.86 .49 (3.15) (6.61)
Net interest margin 3.26 3.30 3.51 3.52 3.59
Operating efficiency ratio from continuing operations (2) 58.26 63.14 65.43 92.27 98.98
Average equity to average assets 9.69 10.35 8.47 7.75 10.77
Average tangible equity to average assets (4) 9.67 10.31 8.38 7.62 8.88
Average tangible common equity to average assets (4) 9.60 7.55 5.54 3.74 6.52
Tangible common equity to risk-weighted assets (4) 13.82 13.17 8.26 8.25 5.64
ASSET QUALITY *
Non-performing loans $ 17,881 $ 26,819 $ 109,894 $ 127,479 $ 179,094
Foreclosed properties 1,726 4,221 18,264 32,859 142,208
Total non-performing assets (NPAs) 19,607 31,040 128,158 160,338 321,302
Allowance for loan losses 71,619 76,762 107,137 114,468 174,695
Operating net charge-offs (1) 13,879 93,710 69,831 311,227 215,657
Allowance for loan losses to loans 1.53% 1.77% 2.57% 2.79% 3.79%
Operating net charge-offs to average loans (1) .31 2.22 1.69 7.33 4.42
NPAs to loans and foreclosed properties .42 .72 3.06 3.87 6.77
NPAs to total assets .26 .42 1.88 2.30 4.42
AVERAGE BALANCES ($ in millions)
Loans $ 4,450 $ 4,254 $ 4,166 $ 4,307 $ 4,961
Investment securities 2,274 2,190 2,089 1,999 1,453
Earning assets 6,880 6,649 6,547 6,785 6,822
Total assets 7,436 7,074 6,865 7,189 7,605
Deposits 6,228 6,027 5,885 6,275 6,373
Shareholders' equity 720 732 582 557 819
Common shares - Basic (thousands) 60,588 58,787 57,857 39,943 18,925
Common shares - Diluted (thousands) 60,590 58,845 57,857 39,943 18,925
AT YEAR END ($ in millions)
Loans * $ 4,672 $ 4,329 $ 4,175 $ 4,110 $ 4,604
Investment securities 2,198 2,312 2,079 2,120 1,490
Total assets 7,567 7,425 6,802 6,983 7,276
Deposits 6,327 6,202 5,952 6,098 6,469
Shareholders' equity 740 796 581 575 469
Common shares outstanding (thousands) 60,259 59,432 57,741 57,561 18,937
(1) Excludes the subsequent recovery of $11.8 million in previously recognized fraud related loan losses in 2010. (2) Excludes goodwill impairment charge of $211 million in 2010. (3) 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). (4) Excludes effect of acquisition related intangibles and associated amortization.
* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2014 2013
(in thousands, except per share Fourth Third Second First Fourth
data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 64,353 $ 63,338 $ 61,783 $ 60,495 $ 61,695
Taxable equivalent adjustment (398) (405) (377) (357) (380)
Interest revenue (GAAP) $ 63,955 $ 62,933 $ 61,406 $ 60,138 $ 61,315
Net interest revenue reconciliation
Net interest revenue - taxable equivalent $ 58,332 $ 56,967 $ 54,950 $ 54,169 $ 55,879
Taxable equivalent adjustment (398) (405) (377) (357) (380)
Net interest revenue (GAAP) $ 57,934 $ 56,562 $ 54,573 $ 53,812 $ 55,499
Total revenue reconciliation
Total operating revenue $ 71,355 $ 69,379 $ 66,893 $ 63,845 $ 66,398
Taxable equivalent adjustment (398) (405) (377) (357) (380)
Total revenue (GAAP) $ 70,957 $ 68,974 $ 66,516 $ 63,488 $ 66,018
Income before taxes reconciliation
Income before taxes $ 29,436 $ 28,015 $ 26,361 $ 24,795 $ 24,784
Taxable equivalent adjustment (398) (405) (377) (357) (380)
Income before taxes (GAAP) $ 29,038 $ 27,610 $ 25,984 $ 24,438 $ 24,404
Income tax expense (benefit) reconciliation
Income tax expense (benefit) $ 11,189 $ 10,399 $ 10,004 $ 9,395 $ 8,873
Taxable equivalent adjustment (398) (405) (377) (357) (380)
Income tax expense (benefit) (GAAP) $ 10,791 $ 9,994 $ 9,627 $ 9,038 $ 8,493
Book value per common share reconciliation
Tangible book value per common share $ 12.15 $ 12.10 $ 11.91 $ 11.63 $ 11.26
Effect of goodwill and other intangibles .05 .05 .03 .03 .04
Book value per common share (GAAP) $ 12.20 $ 12.15 $ 11.94 $ 11.66 $ 11.30
Average equity to assets reconciliation
Tangible common equity to assets 9.72% 9.83% 9.58% 9.22% 8.99%
Effect of preferred equity -- -- -- .28 2.60
Tangible equity to assets 9.72 9.83 9.58 9.50 11.59
Effect of goodwill and other intangibles .04 .02 .03 .02 .03
Equity to assets (GAAP) 9.76% 9.85% 9.61% 9.52% 11.62%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets 13.82% 14.10% 13.92% 13.63% 13.18%
Effect of other comprehensive income .35 .34 .53 .36 .39
Effect of deferred tax limitation (3.11) (3.39) (3.74) (3.92) (4.26)
Effect of trust preferred 1.00 1.02 1.04 1.03 1.04
Effect of preferred equity -- -- -- -- 2.39
Tier I capital ratio (Regulatory) 12.06% 12.07% 11.75% 11.10% 12.74%
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
(in thousands, except per share For the Twelve Months
Ended December 31,
data; taxable equivalent) 2014 2013 2012 2011 2010
Interest revenue reconciliation
Interest revenue - taxable equivalent $ 249,969 $ 247,323 $ 267,667 $ 304,308 $ 344,493
Taxable equivalent adjustment (1,537) (1,483) (1,690) (1,707) (2,001)
Interest revenue (GAAP) $ 248,432 $ 245,840 $ 265,977 $ 302,601 $ 342,492
Net interest revenue reconciliation
Net interest revenue - taxable equivalent $ 224,418 $ 219,641 $ 229,758 $ 238,670 $ 244,637
Taxable equivalent adjustment (1,537) (1,483) (1,690) (1,707) (2,001)
Net interest revenue (GAAP) $ 222,881 $ 218,158 $ 228,068 $ 236,963 $ 242,636
Provision for credit losses reconciliation
Operating provision for credit losses $ 8,500 $ 65,500 $ 62,500 $ 251,000 $ 234,750
Partial recovery of special fraud-related loan loss -- -- -- -- (11,750)
Provision for credit losses (GAAP) $ 8,500 $ 65,500 $ 62,500 $ 251,000 $ 223,000
Total revenue reconciliation
Total operating revenue $ 271,472 $ 210,739 $ 223,370 $ 32,577 $ 56,850
Taxable equivalent adjustment (1,537) (1,483) (1,690) (1,707) (2,001)
Partial recovery of special fraud-related loan loss -- -- -- -- 11,750
Total revenue (GAAP) $ 269,935 $ 209,256 $ 221,680 $ 30,870 $ 66,599
Expense reconciliation
Operating expense $ 162,865 $ 174,304 $ 186,774 $ 261,599 $ 288,301
Noncash goodwill impairment charge -- -- -- -- 210,590
Operating expense (GAAP) $ 162,865 $ 174,304 $ 186,774 $ 261,599 $ 498,891
Income before taxes reconciliation
Income before taxes $ 108,607 $ 36,435 $ 36,596 $ (229,022) $ (231,451)
Taxable equivalent adjustment (1,537) (1,483) (1,690) (1,707) (2,001)
Noncash goodwill impairment charge -- -- -- -- (210,590)
Partial recovery of special fraud-related loan loss -- -- -- -- 11,750
Income before taxes (GAAP) $ 107,070 $ 34,952 $ 34,906 $ (230,729) $ (432,292)
Income tax expense (benefit) reconciliation
Income tax expense (benefit) $ 40,987 $ (236,705) $ 2,740 $ (2,276) $ 73,218
Taxable equivalent adjustment (1,537) (1,483) (1,690) (1,707) (2,001)
Income tax expense (benefit) (GAAP) $ 39,450 $ (238,188) $ 1,050 $ (3,983) $ 71,217
Diluted earnings (loss) from continuing operations per common share reconciliation
Diluted operating earnings (loss) from continuing operations per common share $ 1.11 $ 4.44 $ .38 $ (5.97) $ (16.64)
Noncash goodwill impairment charge -- -- -- -- (11.13)
Partial recovery of special fraud-related loan loss -- -- -- -- .62
Diluted earnings (loss) from continuing operations per common share (GAAP) $ 1.11 $ 4.44 $ .38 $ (5.97) $ (27.15)
Book value per common share reconciliation
Tangible book value per common share $ 12.15 $ 11.26 $ 6.57 $ 6.47 $ 14.80
Effect of goodwill and other intangibles .05 .04 .10 .15 .60
Book value per common share (GAAP) $ 12.20 $ 11.30 $ 6.67 $ 6.62 $ 15.40
Efficiency ratio from continuing operations reconciliation
Operating efficiency ratio from continuing operations 58.26% 63.14% 65.43% 92.27% 98.98%
Noncash goodwill impairment charge -- -- -- -- 72.29
Efficiency ratio from continuing operations (GAAP) 58.26% 63.14% 65.43% 92.27% 171.27%
Average equity to assets reconciliation
Tangible common equity to assets 9.60% 7.55% 5.54% 3.74% 6.52%
Effect of preferred equity .07 2.76 2.84 3.88 2.36
Tangible equity to assets 9.67 10.31 8.38 7.62 8.88
Effect of goodwill and other intangibles .02 .04 .09 .13 1.89
Equity to assets (GAAP) 9.69% 10.35% 8.47% 7.75% 10.77%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets 13.82% 13.18% 8.26% 8.25% 5.64%
Effect of other comprehensive income .35 .39 .51 (.03) (.42)
Effect of deferred tax limitation (3.11) (4.26) -- -- --
Effect of trust preferred 1.00 1.04 1.15 1.18 1.06
Effect of preferred equity -- 2.39 4.24 4.29 3.53
Tier I capital ratio (Regulatory) 12.06% 12.74% 14.16% 13.69% 9.81%
Net charge-offs reconciliation
Operating net charge-offs $ 13,878 $ 93,710 $ 69,831 $ 311,227 $ 215,657
Subsequent partial recovery of fraud-related charge-off -- -- -- -- (11,750)
Net charge-offs (GAAP) $ 13,878 $ 93,710 $ 69,831 $ 311,227 $ 203,907
Net charge-offs to average loans reconciliation
Operating net charge-offs to average loans .31% 2.22% 1.69% 7.33% 4.42%
Subsequent partial recovery of fraud-related charge-off -- -- -- -- (.25)
Net charge-offs to average loans (GAAP) .31% 2.22% 1.69% 7.33% 4.17%
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2014 2013
Fourth Third Second First Fourth
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,163 $ 1,153 $ 1,163 $ 1,142 $ 1,134
Income producing commercial RE 599 605 598 624 623
Commercial & industrial 710 650 554 495 472
Commercial construction 196 181 160 148 149
Total commercial 2,668 2,589 2,475 2,409 2,378
Residential mortgage 866 866 861 866 875
Home equity lines of credit 466 459 451 447 441
Residential construction 299 307 302 318 328
Consumer installment 373 348 321 316 307
Total loans $ 4,672 $ 4,569 $ 4,410 $ 4,356 $ 4,329
LOANS BY MARKET
North Georgia $ 1,163 $ 1,168 $ 1,175 $ 1,205 $ 1,240
Atlanta MSA 1,282 1,289 1,305 1,290 1,275
North Carolina 553 553 555 563 572
Coastal Georgia 456 444 426 425 423
Gainesville MSA 257 254 257 262 255
East Tennessee 280 281 270 272 280
South Carolina / Corporate 412 337 206 131 88
Other (2) 269 243 216 208 196
Total loans $ 4,672 $ 4,569 $ 4,410 $ 4,356 $ 4,329
(1) Excludes total loans of $2.8 million, $2.8 million, $3.1 million, $19.3 million and $20.3 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
2014 2013 Linked Year over
Fourth Third Fourth Quarter Year
(in millions) Quarter Quarter Quarter Change Change
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,163 $ 1,153 $ 1,134 $ 10 $ 29
Income producing commercial RE 599 605 623 (6) (24)
Commercial & industrial 710 650 472 60 238
Commercial construction 196 181 149 15 47
Total commercial 2,668 2,589 2,378 79 290
Residential mortgage 866 866 875 -- (9)
Home equity lines of credit 466 459 441 7 25
Residential construction 299 307 328 (8) (29)
Consumer installment 373 348 307 25 66
Total loans $ 4,672 $ 4,569 $ 4,329 103 343
LOANS BY MARKET
North Georgia $ 1,163 $ 1,168 $ 1,240 (5) (77)
Atlanta MSA 1,282 1,289 1,275 (7) 7
North Carolina 553 553 572 -- (19)
Coastal Georgia 456 444 423 12 33
Gainesville MSA 257 254 255 3 2
East Tennessee 280 281 280 (1) --
South Carolina / Corporate 412 337 88 75 324
Other (2) 269 243 196 26 73
Total loans $ 4,672 $ 4,569 $ 4,329 103 343
(1) Excludes total loans of $2.8 million, $2.8 million, $3.1 million, $19.3 million and $20.3 million as of December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, that are covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End (1)
(in millions) 2014 2013 2012 2011 2010
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,163 $ 1,134 $ 1,131 $ 1,112 $ 980
Income producing commercial RE 599 623 682 710 781
Commercial & industrial 710 472 458 428 441
Commercial construction 196 149 155 164 297
Total commercial 2,668 2,378 2,426 2,414 2,499
Residential mortgage 866 875 829 835 944
Home equity lines of credit 466 441 385 300 335
Residential construction 299 328 382 448 695
Consumer / installment 373 307 153 113 131
Total loans $ 4,672 $ 4,329 $ 4,175 $ 4,110 $ 4,604
LOANS BY MARKET
North Georgia $ 1,163 $ 1,240 $ 1,364 $ 1,426 $ 1,689
Atlanta MSA 1,282 1,275 1,250 1,220 1,310
North Carolina 553 572 579 597 702
Coastal Georgia 456 423 400 346 335
Gainesville MSA 257 255 261 265 312
East Tennessee 280 280 283 256 256
South Carolina / Corporate 412 88 -- -- --
Other (2) 269 196 38 -- --
Total loans $ 4,672 $ 4,329 $ 4,175 $ 4,110 $ 4,604
(1) Excludes total loans of $2.8 million, $20.3 million, $33.4 million, $54.5 million and $68.2 million as of December 31, 2014, 2013, 2012, 2011 and 2010, respectively, that are covered by loss-sharing agreements with the FDIC, related to the acquisition of Southern Community Bank. (2) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter 2014
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 4,133 $ 355 $ 4,488
Income producing CRE 717 -- 717
Commercial & industrial 1,571 -- 1,571
Commercial construction 83 15 98
Total commercial 6,504 370 6,874
Residential mortgage 8,196 1,183 9,379
Home equity lines of credit 695 40 735
Residential construction 2,006 133 2,139
Consumer installment 480 -- 480
Total NPAs $ 17,881 $ 1,726 $ 19,607
Balance as a % of Unpaid Principal 69.9% 54.1% 68.1%
NONPERFORMING ASSETS BY MARKET
North Georgia $ 5,669 $ 711 $ 6,380
Atlanta MSA 1,837 372 2,209
North Carolina 5,221 234 5,455
Coastal Georgia 799 105 904
Gainesville MSA 1,310 81 1,391
East Tennessee 1,414 201 1,615
South Carolina / Corporate 1,285 22 1,307
Other (3) 346 -- 346
Total NPAs $ 17,881 $ 1,726 $ 19,607
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 18,745 $ 3,146 $ 21,891
Loans placed on non-accrual 7,140 -- 7,140
Payments received (5,286) -- (5,286)
Loan charge-offs (1,841) -- (1,841)
Foreclosures (877) 877 --
Capitalized costs -- -- --
Property sales -- (2,483) (2,483)
Write downs -- (1) (1)
Net gains (losses) on sales -- 187 187
Ending Balance $ 17,881 $ 1,726 $ 19,607
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Third Quarter 2014
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 2,156 $ 1,024 $ 3,180
Income producing CRE 1,742 42 1,784
Commercial & industrial 1,593 -- 1,593
Commercial construction 148 -- 148
Total commercial 5,639 1,066 6,705
Residential mortgage 8,350 1,769 10,119
Home equity lines of credit 720 90 810
Residential construction 3,543 221 3,764
Consumer installment 493 -- 493
Total NPAs $ 18,745 $ 3,146 $ 21,891
Balance as a % of Unpaid Principal 68.6% 54.5% 66.1%
NONPERFORMING ASSETS BY MARKET
North Georgia $ 7,392 $ 1,717 $ 9,109
Atlanta MSA 1,724 364 2,088
North Carolina 4,919 398 5,317
Coastal Georgia 781 160 941
Gainesville MSA 1,403 85 1,488
East Tennessee 1,227 245 1,472
South Carolina / Corporate 945 177 1,122
Other (3) 354 -- 354
Total NPAs $ 18,745 $ 3,146 $ 21,891
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 20,724 $ 2,969 $ 23,693
Loans placed on non-accrual 7,665 -- 7,665
Payments received (3,129) -- (3,129)
Loan charge-offs (4,353) -- (4,353)
Foreclosures (2,162) 2,162 --
Capitalized costs -- 209 209
Property sales -- (2,350) (2,350)
Write downs -- (108) (108)
Net gains (losses) on sales -- 264 264
Ending Balance $ 18,745 $ 3,146 $ 21,891
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Second Quarter 2014
Non-performing Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 2,975 $ 653 $ 3,628
Income producing CRE 1,032 242 1,274
Commercial & industrial 1,102 -- 1,102
Commercial construction 95 -- 95
Total commercial 5,204 895 6,099
Residential mortgage 10,201 1,426 11,627
Home equity lines of credit 510 128 638
Residential construction 4,248 520 4,768
Consumer installment 561 -- 561
Total NPAs $ 20,724 $ 2,969 $ 23,693
Balance as a % of Unpaid Principal 66.5% 50.4% 63.9%
NONPERFORMING ASSETS BY MARKET
North Georgia $ 8,216 $ 1,392 $ 9,608
Atlanta MSA 3,883 510 4,393
North Carolina 5,314 615 5,929
Coastal Georgia 782 80 862
Gainesville MSA 921 49 970
East Tennessee 1,218 323 1,541
South Carolina / Corporate -- -- --
Other (3) 390 -- 390
Total NPAs $ 20,724 $ 2,969 $ 23,693
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 25,250 $ 5,594 $ 30,844
Loans placed on non-accrual 9,529 -- 9,529
Payments received (4,027) -- (4,027)
Loan charge-offs (8,341) -- (8,341)
Foreclosures (1,687) 1,687 --
Capitalized costs -- -- --
Property sales -- (4,430) (4,430)
Write downs -- (305) (305)
Net gains (losses) on sales -- 423 423
Ending Balance $ 20,724 $ 2,969 $ 23,693
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality (1)
Fourth Quarter 2014 Third Quarter 2014 Second Quarter 2014
Net Charge- Net Charge- Net Charge-
Offs to Offs to Offs to
Net Average Net Average Net Average
(in thousands) Charge-Offs Loans (2) Charge-Offs Loans (2) Charge-Offs Loans (2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE $ 891 .31% $ 746 .26% $ (1,836) (.64)%
Income producing CRE 143 .09 104 .07 435 .29
Commercial & industrial (295) (.17) (341) (.23) 662 .52
Commercial construction (6) (.01) 103 .24 131 .34
Total commercial 733 .11 612 .10 (608) (.10)
Residential mortgage 1,226 .56 1,116 .52 2,509 1.17
Home equity lines of credit 238 .20 356 .31 466 .42
Residential construction (44) (.06) 712 .94 1,671 2.13
Consumer installment 356 .39 359 .43 137 .18
Total $ 2,509 .22 $ 3,155 .28 $ 4,175 .38
NET CHARGE-OFFS BY MARKET
North Georgia $ 791 .27% $ 1,861 .63% $ (741) (.25)%
Atlanta MSA 147 .05 (250) (.08) 1,481 .46
North Carolina 1,103 .79 656 .47 2,161 1.55
Coastal Georgia 30 .03 228 .21 116 .11
Gainesville MSA 94 .15 259 .40 797 1.23
East Tennessee 54 .08 230 .33 288 .42
South Carolina / Corporate 110 .11 5 .01 -- --
Other (3) 180 .29 166 .31 73 .14
Total $ 2,509 .22 $ 3,155 .28 $ 4,175 .38
(1) Excludes non-performing loans and foreclosed properties covered by the loss-sharing agreement with the FDIC, related to the acquisition of Southern Community Bank.
(2) Annualized.
(3) Includes purchased indirect auto loans that are not assigned to a geographic region.
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) 2014 2013 2014 2013
Interest revenue:
Loans, including fees $ 50,677 $ 49,066 $ 196,279 $ 200,893
Investment securities, including tax exempt of $180, $203, $738 and $827 12,375 11,253 48,493 41,158
Deposits in banks and short-term investments 903 996 3,660 3,789
Total interest revenue 63,955 61,315 248,432 245,840
Interest expense:
Deposits:
NOW 435 473 1,651 1,759
Money market 868 569 3,060 2,210
Savings 20 24 81 133
Time 1,623 1,593 7,133 10,464
Total deposit interest expense 2,946 2,659 11,925 14,566
Short-term borrowings 96 508 2,160 2,071
Federal Home Loan Bank advances 339 3 912 68
Long-term debt 2,640 2,646 10,554 10,977
Total interest expense 6,021 5,816 25,551 27,682
Net interest revenue 57,934 55,499 222,881 218,158
Provision for credit losses 1,800 3,000 8,500 65,500
Net interest revenue after provision for credit losses 56,134 52,499 214,381 152,658
Fee revenue:
Service charges and fees 8,446 8,166 33,073 31,997
Mortgage loan and other related fees 2,111 1,713 7,520 9,925
Brokerage fees 1,176 1,361 4,807 4,465
Securities gains, net 208 70 4,871 186
Loss from prepayment of debt -- -- (4,446) --
Other 2,882 2,209 9,729 10,025
Total fee revenue 14,823 13,519 55,554 56,598
Total revenue 70,957 66,018 269,935 209,256
Operating expenses:
Salaries and employee benefits 26,592 24,817 100,941 96,233
Communications and equipment 3,153 3,414 12,523 13,233
Occupancy 3,448 3,735 13,513 13,930
Advertising and public relations 802 781 3,461 3,718
Postage, printing and supplies 1,086 882 3,542 3,283
Professional fees 834 2,102 6,707 9,617
Foreclosed property 131 191 634 7,869
FDIC assessments and other regulatory charges 883 1,804 4,792 9,219
Amortization of intangibles 287 408 1,348 2,031
Other 4,703 3,480 15,404 15,171
Total operating expenses 41,919 41,614 162,865 174,304
Net income before income taxes 29,038 24,404 107,070 34,952
Income tax expense (benefit) 10,791 8,493 39,450 (238,188)
Net income 18,247 15,911 67,620 273,140
Preferred stock dividends and discount accretion -- 2,912 439 12,078
Net income available to common shareholders $ 18,247 $ 12,999 $ 67,181 $ 261,062
Earnings per common share:
Basic $ .30 $ .22 $ 1.11 $ 4.44
Diluted .30 .22 1.11 4.44
Weighted average common shares outstanding:
Basic 60,830 59,923 60,588 58,787
Diluted 60,833 59,925 60,590 58,845
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
December 31, December 31,
(in thousands, except share and per share data) 2014 2013
ASSETS
Cash and due from banks $ 77,180 $ 71,230
Interest-bearing deposits in banks 89,074 119,669
Short-term investments 26,401 37,999
Cash and cash equivalents 192,655 228,898
Securities available for sale 1,782,734 1,832,217
Securities held to maturity (fair value $425,233 and $485,585) 415,267 479,742
Mortgage loans held for sale 13,737 10,319
Loans, net of unearned income 4,672,119 4,329,266
Less allowance for loan losses (71,619) (76,762)
Loans, net 4,600,500 4,252,504
Assets covered by loss sharing agreements with the FDIC 3,315 22,882
Premises and equipment, net 159,390 163,589
Bank owned life insurance 81,294 80,670
Accrued interest receivable 20,103 19,598
Goodwill and other intangible assets 3,641 3,480
Foreclosed property 1,726 4,221
Net deferred tax asset 215,503 258,518
Derivative financial instruments 20,599 23,833
Other assets 56,522 44,948
Total assets $ 7,566,986 $ 7,425,419
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 1,574,317 $ 1,388,512
NOW 1,504,887 1,427,939
Money market 1,273,283 1,227,575
Savings 292,308 251,125
Time:
Less than $100,000 748,478 892,961
Greater than $100,000 508,228 588,689
Brokered 425,011 424,704
Total deposits 6,326,512 6,201,505
Repurchase agreements 6,000 53,241
Federal Home Loan Bank advances 270,125 120,125
Long-term debt 129,865 129,865
Derivative financial instruments 31,997 46,232
Unsettled securities purchases 5,425 29,562
Accrued expenses and other liabilities 57,485 49,174
Total liabilities 6,827,409 6,629,704
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series B; $1,000 stated value; 0, 105,000 and 180,000 shares issued and outstanding -- 105,000
Series D; $1,000 stated value; 0, 16,613 and 16,613 shares issued and outstanding -- 16,613
Common stock, $1 par value; 100,000,000 shares authorized; 50,178,605 and 46,243,345 shares issued and outstanding 50,178 46,243
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 10,080,787 and 13,188,206 shares issued and outstanding 10,081 13,188
Common stock issuable; 357,983 and 241,832 shares 5,168 3,930
Capital surplus 1,080,508 1,078,676
Accumulated deficit (387,568) (448,091)
Accumulated other comprehensive loss (18,790) (19,844)
Total shareholders' equity 739,577 795,715
Total liabilities and shareholders' equity $ 7,566,986 $ 7,425,419
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
2014 2013
Average Avg. Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,620,517 $ 50,883 4.37% $ 4,315,370 $ 49,205 4.52%
Taxable securities (3) 2,202,986 12,195 2.21 2,258,938 11,050 1.96
Tax-exempt securities (1)(3) 18,579 295 6.35 20,681 332 6.42
Federal funds sold and other interest-earning assets 170,703 980 2.30 227,622 1,108 1.95
Total interest-earning assets 7,012,785 64,353 3.65 6,822,611 61,695 3.59
Non-interest-earning assets:
Allowance for loan losses (72,534) (81,335)
Cash and due from banks 73,973 61,083
Premises and equipment 160,049 165,286
Other assets (3) 391,097 402,328
Total assets $ 7,565,370 $ 7,369,973
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,481,414 435 .12 $ 1,372,367 473 .14
Money market 1,433,680 868 .24 1,367,589 569 .17
Savings 291,163 20 .03 250,418 24 .04
Time less than $100,000 761,850 814 .42 907,042 1,164 .51
Time greater than $100,000 520,937 763 .58 604,490 1,029 .68
Brokered time deposits 273,706 46 .07 271,490 (600) (.88)
Total interest-bearing deposits 4,762,750 2,946 .25 4,773,396 2,659 .22
Federal funds purchased and other borrowings 24,750 96 1.54 54,839 508 3.68
Federal Home Loan Bank advances 193,549 339 .69 6,647 3 .18
Long-term debt 129,865 2,640 8.07 129,865 2,646 8.08
Total borrowed funds 348,164 3,075 3.50 191,351 3,157 6.55
Total interest-bearing liabilities 5,110,914 6,021 .47 4,964,747 5,816 .46
Non-interest-bearing liabilities:
Non-interest-bearing deposits 1,620,635 1,416,483
Other liabilities 95,679 132,557
Total liabilities 6,827,228 6,513,787
Shareholders' equity 738,142 856,186
Total liabilities and shareholders' equity $ 7,565,370 $ 7,369,973
Net interest revenue $ 58,332 $ 55,879
Net interest-rate spread 3.18% 3.13%
Net interest margin (4) 3.31% 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 $8.59 million in 2014 and pretax unrealized losses of $6.33 million in 2013 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,
2014 2013
Average Avg. Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2) $ 4,450,268 $ 197,039 4.43% $ 4,254,159 $ 201,278 4.73%
Taxable securities (3) 2,255,084 47,755 2.12 2,169,024 40,331 1.86
Tax-exempt securities (1)(3) 19,279 1,209 6.27 21,228 1,354 6.38
Federal funds sold and other interest-earning assets 155,803 3,966 2.55 204,303 4,360 2.13
Total interest-earning assets 6,880,434 249,969 3.63 6,648,714 247,323 3.72
Non-interest-earning assets:
Allowance for loan losses (75,237) (95,411)
Cash and due from banks 67,818 63,174
Premises and equipment 161,391 167,424
Other assets (3) 401,240 290,098
Total assets $ 7,435,646 $ 7,073,999
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW $ 1,396,373 1,651 .12 $ 1,285,842 1,759 .14
Money market 1,389,837 3,060 .22 1,315,385 2,210 .17
Savings 277,351 81 .03 244,725 133 .05
Time less than $100,000 811,846 3,636 .45 974,470 5,850 .60
Time greater than $100,000 551,027 3,373 .61 654,102 5,115 .78
Brokered time deposits 293,657 124 .04 219,215 (501) (.23)
Total interest-bearing deposits 4,720,091 11,925 .25 4,693,739 14,566 .31
Federal funds purchased and other borrowings 74,541 2,160 2.90 66,561 2,071 3.11
Federal Home Loan Bank advances 175,481 912 .52 32,604 68 .21
Long-term debt 129,865 10,554 8.13 131,081 10,977 8.37
Total borrowed funds 379,887 13,626 3.59 230,246 13,116 5.70
Total interest-bearing liabilities 5,099,978 25,551 .50 4,923,985 27,682 .56
Non-interest-bearing liabilities:
Non-interest-bearing deposits 1,507,944 1,333,199
Other liabilities 107,523 84,506
Total liabilities 6,715,445 6,341,690
Shareholders' equity 720,201 732,309
Total liabilities and shareholders' equity $ 7,435,646 $ 7,073,999
Net interest revenue $ 224,418 $ 219,641
Net interest-rate spread 3.13% 3.16%
Net interest margin (4) 3.26% 3.30%
(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 $3.36 million in 2014 and pretax unrealized gains of $4.36 million in 2013 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.

CONTACT: Rex S. Schuette Chief Financial Officer (706) 781-2266 Rex_Schuette@ucbi.com

Source:United Community Banks, Inc.