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United Community Banks, Inc. Reports Net Operating Income of $23.8 Million for Fourth Quarter 2015, up 30 Percent From a Year Ago

  • Operating earnings per diluted share of 33 cents, up 10 percent from a year ago
  • Operating return on assets of .99 percent
  • Operating return on tangible common equity of 10.9 percent
  • Loans up $162 million from third quarter, or 11 percent annualized, excluding sale of healthcare loans
  • Loan growth for year of $444 million, or 10 percent, excluding mergers and healthcare loan sale
  • Core transaction deposits up $524 million for 2015, or 14 percent, excluding deposits acquired in mergers

BLAIRSVILLE, Ga., Jan. 20, 2016 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today continued its strong momentum as it moves forward as a regional community bank in the Southeast, reflecting strong loan, core deposit and fee revenue growth, and a lower provision for credit losses. For the fourth quarter of 2015, net operating income of $23.8 million increased 30 percent from a year ago and operating earnings per diluted share of 33 cents was up 10 percent from a year ago.

Operating earnings and operating earnings per diluted share for the fourth quarter of 2015 exclude the effects of merger-related and other charges for impairment on properties acquired for future expansion. Including those charges, net income was $18.2 million for the fourth quarter, or 25 cents per diluted share. Also, operating earnings this quarter include three months of earnings from the acquisition of The Palmetto Bank (“Palmetto”), as compared to one month for the third quarter of 2015.

For the full year of 2015, United achieved net income of $71.6 million, or $1.09 per diluted share. Excluding merger-related and other charges, net operating income was $83.2 million, or $1.27 per diluted share.

At December 31, 2015, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.5 percent; Common Equity Tier 1 Risk-Based of 11.5 percent; and, Tier 1 Leverage of 8.3 percent.

“United continues to enhance its long term value potential. This past year of 2015 demonstrated the strengths of our footprint and the momentum that characterizes our organization as we enter into 2016,” said Jimmy Tallent, chairman and chief executive officer. “In 2015, we struck the proper balance of investing for our future and delivering strong financial results. The fourth quarter was a continuation of that solid performance.

“Total loan production continued strong in the fourth quarter, though not readily apparent in our year-end loan balances due to the sale of our $190 million of healthcare loans,” Tallent continued. “Year-to-date loan growth, excluding loans acquired in mergers and our sale of healthcare loans, was $444 million, or 10 percent, slightly above our 2015 target of mid-to-upper-single-digit loan growth. Our loan growth was funded with solid core transaction deposit growth of $524 million, or 14 percent, excluding mergers.

“Fourth quarter net loan growth of $162 million, excluding the healthcare loan sale, was driven by loan production of $590 million across all of our markets,” added Tallent. “Our community banks originated $360 million in loan production, while our specialized lending area, which includes asset-based, commercial real estate, middle market, SBA and builder finance lending, produced $157 million.”

Fourth quarter taxable-equivalent net interest revenue totaled $74.0 million, up $8.33 million from the third quarter of 2015 and up $15.7 million from the fourth quarter of 2014. The increase in net interest revenue reflects strong loan and core deposit growth, net interest revenue from the Palmetto and First National Bank acquisitions, and an increase in net interest margin.

“The taxable-equivalent net interest margin of 3.34 percent is an increase of eight basis points from the third quarter and up three basis points from a year ago,” said Tallent. “The increase from third quarter reflects higher yields on our loan and securities portfolios as well as a two basis point decrease in the average rate on our interest-bearing liabilities.

“This quarter, our loan yield, net interest margin and net interest revenue benefited from the discount accretion from the acquired loan portfolios. The sale of our lower-yielding healthcare loans also contributed to the higher loan yield and net interest margin,” commented Tallent. “Additionally, the securities yield benefited from the mix of floating rate securities, slower prepayments and restructuring of a corporate bond, while interest-bearing liabilities benefited from Palmetto’s highly desirable deposit base that provided a very low cost source of funds.”

The fourth quarter provision for credit losses was $300 thousand, down $400 thousand from the third quarter and down $1.50 million from the fourth quarter of 2014. Fourth quarter net charge-offs were $1.30 million compared with $1.42 million in the third quarter and $2.51 million a year ago. Strong recoveries of previously charged-off loans drove net charge-offs down in the third and fourth quarters of 2015 compared with fourth quarter 2014. Nonperforming assets were .29 percent of total assets at year-end, compared with .29 percent in the third quarter and .26 percent a year ago.

Fourth quarter fee revenue totaled $21.3 million, up $2.99 million from the third quarter and $6.46 million from the fourth quarter of 2014. The increase from the third quarter was primarily due to the full quarter impact of the Palmetto acquisition. Total service charges and fees were $11.5 million, up $2.17 million from the third quarter and up $3.05 million from a year ago. Mortgage fees of $3.29 million were down $550 thousand from the third quarter and up $1.18 million from a year ago. The decrease from the third quarter reflects seasonality and lower refinancing activity. Closed mortgage loans totaled $138 million in the fourth quarter of 2015, compared with $141 million in the third quarter and $77.4 million in the fourth quarter of 2014. During the fourth quarter, sales of $25.1 million in SBA loans resulted in net gains of $2.00 million. This compares with $17.8 million in loans sold and net gains of $1.65 million in the third quarter of 2015, and $15.8 million in loans sold and net gains of $926 thousand in the fourth quarter of 2014.

“We are committed to growing our revenue stream by focusing on fee-generating products and services,” stated Tallent. “The growing SBA lending business and commitment to expanding our mortgage origination business are key parts of this strategy.”

Operating expenses, excluding merger-related and other charges of $9.08 million, were $56.4 million in the fourth quarter. This compares with $48.5 million in the third quarter of 2015 and $41.9 million in the fourth quarter of 2014. The increase from the third quarter reflects approximately $5.6 million of operating expenses related to the full-quarter impact of the Palmetto acquisition. Palmetto’s operating expenses are expected to decline following systems conversions late in the first quarter in 2016, as anticipated cost savings are realized.

“The increase in operating expenses from third quarter also reflects higher professional fees and consulting services for several, mostly one-time, regulatory-related compliance projects throughout the company,” stated Tallent. “With the heightened sensitivity to compliance, we made a decision to accelerate these projects into the current year.”

Fourth quarter salaries and employee benefits expense totaled $32.9 million, up $3.60 million from the third quarter and $6.35 million from a year ago. The linked-quarter increase was primarily due to the full-quarter impact of Palmetto’s costs, our new Charleston loan production office, and higher incentive costs associated with the growth in earnings and lending businesses. The increase from a year ago reflects the impact of mergers, investment in new lenders and support staff for the specialized lending area, as well as higher commissions and incentives associated with the overall improvement in earnings and growth in the SBA and mortgage lending businesses, commercial loans and core deposits.

Occupancy expense of $4.67 million and communications and equipment expense of $4.74 million for the fourth quarter were up $653 thousand and $772 thousand, respectively, with the full-quarter of Palmetto’s expenses accounting for most of the increase in both expense categories.

Other operating expenses for the fourth quarter totaled $7.01 million, up $1.46 million from the third quarter and up $3.08 million from the fourth quarter of 2014. The linked-quarter increase is mostly due to the inclusion of Palmetto’s operating expenses for the full-quarter versus one month in the third quarter. The increase from last year is due to the acquisitions and higher transaction processing costs for interchange and internet banking services.

“Palmetto merged into United on September 1 and our team of bankers has been working diligently to bring these two great companies together,” noted Tallent. “System conversions are targeted for late February 2016 and, upon their completion, Palmetto branches will begin doing business under the United Community Bank brand.”

Fourth quarter expenses included an after-tax merger charge of $1.94 million primarily related to severance and retention bonuses, system conversion costs, and advisory and professional services fees for the Palmetto acquisition. United also incurred an after-tax non-operating impairment charge in the fourth quarter of $3.65 million to write-down properties acquired in prior years for future branch expansion.

“As part of our growth strategy, we are evaluating all of our delivery channels, including future branch sites,” said Tallent. “Some of these properties will be retained for future branch sites, others will be sold. These decisions will be made over the next two years as we continue to execute on our growth strategies. However, because we’ve held these properties for a long time, we evaluated them for impairment and wrote-down the properties accordingly.”

“Our fourth quarter results mark the completion of another strong year,” Tallent said. “We will remember 2015 as the year we successfully re-entered the mergers and acquisitions business. I could not be more pleased with the partners we have chosen and our exceptional team of bankers who worked tirelessly to bring it all about. I’m excited about the momentum and foundation we are building at United and the opportunities for growth and success they will bring.”

Conference Call
United will hold a conference call today, Wednesday, January 20, 2016, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 19833202. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.

About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.6 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 134 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. United Community Bank offers a full range of consumer and commercial banking services including mortgage, advisory, treasury management and other products. In 2014 and 2015, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and again in 2016 was ranked among the top 100 on the Forbes list of America’s Best Banks. Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.

Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2014 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
Fourth
2015 2014 Quarter
(in thousands, except per share Fourth Third Second First Fourth 2015-2014
data; taxable equivalent)Quarter Quarter Quarter Quarter Quarter Change
INCOME SUMMARY
Interest revenue$ 79,646 $ 71,120 $ 66,134 $ 62,909 $ 64,353
Interest expense 5,598 5,402 4,817 5,292 6,021
Net interest revenue 74,048 65,718 61,317 57,617 58,332 27 %
Provision for credit losses 300 700 900 1,800 1,800
Fee revenue 21,284 18,297 17,266 15,682 14,823 44
Total revenue 95,032 83,315 77,683 71,499 71,355 33
Expenses - operating (1) 56,410 48,525 45,247 43,061 41,919 35
Income before income tax expense - operating (1) 38,622 34,790 32,436 28,438 29,436 31
Income tax expense - operating (1) 14,822 13,064 12,447 10,768 11,189 32
Net income - operating (1) 23,800 21,726 19,989 17,670 18,247 30
Preferred dividends and discount accretion 25 25 17 - -
Net income available to common
shareholders - operating (1)
23,775 21,701 19,972 17,670 18,247 30
Merger-related and other charges, net of income tax benefit 5,592 3,839 2,176 - -
Net income available to common
shareholders - GAAP
$ 18,183 $ 17,862 $ 17,796 $ 17,670 $ 18,247 -
PERFORMANCE MEASURES
Per common share:
Diluted income - operating (1) $ .33 $.33 $.32 $.29 $.30 10
Diluted income - GAAP .25 .27 .28 .29 .30 (17)
Cash dividends declared .06 .06 .05 .05 .05
Book value 14.02 13.95 12.95 12.58 12.20 15
Tangible book value (3) 12.06 12.08 12.66 12.53 12.15 (1)
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)(4) 10.87 % 10.29 % 10.20 % 9.46 % 9.74 %
Return on common equity - operating (1)(2)(4) 9.18 9.54 9.90 9.34 9.60
Return on common equity - GAAP (2)(4) 7.02 7.85 8.83 9.34 9.60
Return on assets - operating (1)(4) .99 1.00 1.00 .94 .96
Return on assets - GAAP (4) .76 .82 .89 .94 .96
Dividend payout ratio - operating (1) 18.18 18.18 15.63 17.24 16.67
Dividend payout ratio - GAAP 24.00 22.22 17.86 17.24 16.67
Net interest margin (4) 3.34 3.26 3.30 3.31 3.31
Efficiency ratio - operating (1) 59.41 57.81 57.59 59.15 57.47
Efficiency ratio - GAAP 68.97 64.65 61.63 59.15 57.47
Average equity to average assets 10.68 10.39 10.05 9.86 9.76
Average tangible equity to average assets (3) 9.40 9.88 9.91 9.82 9.72
Average tangible common equity to
average assets (3)
9.29 9.77 9.83 9.82 9.72
Tangible common equity to risk-weighted
assets (3)(5)(6)
12.82 13.08 13.24 13.53 13.82
ASSET QUALITY
Nonperforming loans$ 22,653 $ 20,064 $ 18,805 $ 19,015 $ 17,881 27
Foreclosed properties 4,883 7,669 2,356 1,158 1,726 183
Total nonperforming assets (NPAs) 27,536 27,733 21,161 20,173 19,607 40
Allowance for loan losses 68,448 69,062 70,129 70,007 71,619 (4)
Net charge-offs 1,302 1,417 978 2,562 2,509 (48)
Allowance for loan losses to loans 1.14 % 1.15 % 1.36 % 1.46 % 1.53%
Allowance for loan losses to loans, excl. acquired loans 1.35 1.37 1.42 1.46 1.53
Net charge-offs to average loans (4) .09 .10 .08 .22 .22
NPAs to loans and foreclosed properties .46 .46 .41 .42 .42
NPAs to total assets .29 .29 .26 .26 .26
AVERAGE BALANCES ($ in millions)
Loans$ 5,975 $ 5,457 $ 5,017 $ 4,725 $ 4,621 29
Investment securities 2,607 2,396 2,261 2,203 2,222 17
Earning assets 8,792 8,009 7,444 7,070 7,013 25
Total assets 9,558 8,634 8,017 7,617 7,565 26
Deposits 8,028 7,135 6,669 6,369 6,383 26
Shareholders’ equity 1,021 897 806 751 738 38
Common shares - basic (thousands) 72,135 66,294 62,549 60,905 60,830 19
Common shares - diluted (thousands) 72,140 66,300 62,553 60,909 60,833 19
AT PERIOD END ($ in millions)
Loans$ 5,995 $ 6,024 $ 5,174 $ 4,788 $ 4,672 28
Investment securities 2,656 2,457 2,322 2,201 2,198 21
Total assets 9,626 9,414 8,246 7,664 7,567 27
Deposits 7,881 7,905 6,808 6,438 6,327 25
Shareholders’ equity 1,018 1,013 827 764 740 38
Common shares outstanding (thousands) 71,484 71,472 62,700 60,309 60,259 19
(1) Excludes merger-related charges and impairment losses on surplus bank property. (2) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. (6) Fourth quarter 2015 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Twelve
Months Ended YTD
(in thousands, except per shareDecember 31, 2015-2014
data; taxable equivalent) 2015 2014 Change
INCOME SUMMARY
Interest revenue$ 279,809 $ 249,969
Interest expense 21,109 25,551
Net interest revenue 258,700 224,418 15 %
Provision for credit losses 3,700 8,500
Fee revenue 72,529 55,554 31
Total revenue 327,529 271,472 21
Expenses - operating (1) 193,243 162,865 19
Income before income tax expense - operating (1) 134,286 108,607 24
Income tax expense - operating (1) 51,101 40,987 25
Net income - operating (1) 83,185 67,620 23
Preferred dividends and discount accretion 67 439
Net income available to common
shareholders - operating (1)
83,118 67,181 24
Merger-related and other charges, net of income tax benefit 11,607 -
Net income available to common
shareholders - GAAP
$ 71,511 $ 67,181 6
PERFORMANCE MEASURES
Per common share:
Diluted income - operating (1)$ 1.27 $ 1.11 14
Diluted income - GAAP 1.09 1.11 (2)
Cash dividends declared .22 .11
Book value 14.02 12.20 15
Tangible book value (3) 12.06 12.15 (1)
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3)(4) 10.24 % 9.32 %
Return on common equity - operating (1)(2)(4) 9.48 9.17
Return on common equity - GAAP (2)(4) 8.15 9.17
Return on assets - operating (1)(4) .98 .91
Return on assets - GAAP (4) .85 .91
Dividend payout ratio - operating (1) 17.32 9.91
Dividend payout ratio - GAAP 20.18 9.91
Net interest margin (4) 3.30 3.26
Efficiency ratio - operating (1) 58.51 58.26
Efficiency ratio - GAAP 63.96 58.26
Average equity to average assets 10.27 9.69
Average tangible equity to average assets (3) 9.74 9.67
Average tangible common equity to
average assets (3)
9.66 9.60
Tangible common equity to risk-weighted
assets (3)(5)(6)
12.82 13.82
ASSET QUALITY
Nonperforming loans$ 22,653 $ 17,881 27
Foreclosed properties 4,883 1,726 183
Total nonperforming assets (NPAs) 27,536 19,607 40
Allowance for loan losses 68,448 71,619 (4)
Net charge-offs 6,259 13,878 (55)
Allowance for loan losses to loans 1.14 % 1.53 %
Allowance for loan losses to loans, excl. acquired loans 1.35 1.53
Net charge-offs to average loans (4) .12 .31
NPAs to loans and foreclosed properties .46 .42
NPAs to total assets .29 .26
AVERAGE BALANCES ($ in millions)
Loans$ 5,298 $ 4,450 19
Investment securities 2,368 2,274 4
Earning assets 7,834 6,880 14
Total assets 8,462 7,436 14
Deposits 7,055 6,228 13
Shareholders’ equity 869 720 21
Common shares - basic (thousands) 65,488 60,588 8
Common shares - diluted (thousands) 65,492 60,590 8
AT PERIOD END ($ in millions)
Loans$ 5,995 $ 4,672 28
Investment securities 2,656 2,198 21
Total assets 9,626 7,567 27
Deposits 7,881 6,327 25
Shareholders’ equity 1,018 740 38
Common shares outstanding (thousands) 71,484 60,259 19
(1) Excludes merger-related charges and impairment losses on surplus bank property. (2) Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. (6) Fourth quarter 2015 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data;
taxable equivalent) 2015 2014 2013 2012 2011
INCOME SUMMARY
Net interest revenue $ 258,700 $ 224,418 $ 219,641 $ 229,758 $ 238,670
Provision for credit losses 3,700 8,500 65,500 62,500 251,000
Fee revenue 72,529 55,554 56,598 56,112 44,907
Total revenue 327,529 271,472 210,739 223,370 32,577
Expenses - operating (1) 193,243 162,865 174,304 186,774 261,599
Income (loss) before income tax expense (benefit) - operating (1) 134,286 108,607 36,435 36,596 (229,022)
Income tax expense (benefit) - operating (1) 51,101 40,987 (236,705) 2,740 (2,276)
Net income (loss) - operating (1) 83,185 67,620 273,140 33,856 (226,746)
Preferred dividends and discount accretion 67 439 12,078 12,148 11,838
Net income (loss) available to common shareholders - operating (1) 83,118 67,181 261,062 21,708 (238,584)
Merger-related and other charges, net of income tax benefit (11,607) - - - -
Net income (loss) available to common shareholders - GAAP $ 71,511 $ 67,181 $ 261,062 $ 21,708 $ (238,584)
PERFORMANCE MEASURES
Per common share:
Diluted income (loss) - operating (1) $ 1.27 $ 1.11 $ 4.44 $.38 $ (5.97)
Diluted income (loss) - GAAP 1.09 1.11 4.44 .38 (5.97)
Cash dividends declared .22 .11 - - -
Book value 14.02 12.20 11.30 6.67 6.62
Tangible book value (3) 12.06 12.15 11.26 6.57 6.47
Key performance ratios:
Return on tangible common equity - operating (1)(2)(3) 10.24 % 9.32 % 47.35 % 6.27 % (96.20)%
Return on common equity - operating (1)(2) 9.48 9.17 46.72 5.43 (93.57)
Return on common equity - GAAP (2) 8.15 9.17 46.72 5.43 (93.57)
Return on assets - operating (1) .98 .91 3.86 .49 (3.15)
Return on assets - GAAP .85 .91 3.86 .49 (3.15)
Dividend payout ratio - operating (1) 17.32 9.91 - - -
Dividend payout ratio - GAAP 20.18 9.91 - - -
Net interest margin 3.30 3.26 3.30 3.51 3.52
Efficiency ratio - operating (1) 58.51 58.26 63.14 65.43 92.27
Efficiency ratio - GAAP 63.96 58.26 63.14 65.43 92.27
Average equity to average assets 10.27 9.69 10.35 8.47 7.75
Average tangible equity to average assets (3) 9.74 9.67 10.31 8.38 7.62
Average tangible common equity to average assets (3) 9.66 9.60 7.55 5.54 3.74
Tangible common equity to risk-weighted assets (3)(4)(5) 12.82 13.82 13.17 8.26 8.25
ASSET QUALITY
Non-performing loans $ 22,653 $ 17,881 $ 26,819 $ 109,894 $ 127,479
Foreclosed properties 4,883 1,726 4,221 18,264 32,859
Total non-performing assets (NPAs) 27,536 19,607 31,040 128,158 160,338
Allowance for loan losses 68,448 71,619 76,762 107,137 114,468
Net charge-offs 6,259 13,879 93,710 69,831 311,227
Allowance for loan losses to loans 1.14 % 1.53 % 1.77 % 2.57 % 2.79 %
Allowance for loan losses to loans, excluding acquired loans 1.35 1.53 1.77 2.57 2.79
Net charge-offs to average loans .12 .31 2.22 1.69 7.33
NPAs to loans and foreclosed properties .46 .42 .72 3.06 3.87
NPAs to total assets .29 .26 .42 1.88 2.30
AVERAGE BALANCES ($ in millions)
Loans $ 5,298 $ 4,450 $ 4,254 $ 4,166 $ 4,307
Investment securities 2,368 2,274 2,190 2,089 1,999
Earning assets 7,834 6,880 6,649 6,547 6,785
Total assets 8,462 7,436 7,074 6,865 7,189
Deposits 7,055 6,228 6,027 5,885 6,275
Shareholders’ equity 869 720 732 582 557
Common shares - Basic (thousands) 65,488 60,588 58,787 57,857 39,943
Common shares - Diluted (thousands) 65,492 60,590 58,845 57,857 39,943
AT YEAR END ($ in millions)
Loans $ 5,995 $ 4,672 $ 4,329 $ 4,175 $ 4,110
Investment securities 2,656 2,198 2,312 2,079 2,120
Total assets 9,626 7,567 7,425 6,802 6,983
Deposits 7,881 6,327 6,202 5,952 6,098
Shareholders’ equity 1,018 740 796 581 575
Common shares outstanding (thousands) 71,484 60,259 59,432 57,741 57,561
(1) Excludes merger-related charges and impairment losses on surplus bank property. (2) Net income (loss) available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) December 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. (5) 2015 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2015 2014
(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$ 79,646 $ 71,120 $ 66,134 $ 62,909 $ 64,353
Taxable equivalent adjustment (284) (292) (326) (375) (398)
Interest revenue (GAAP)$ 79,362 $ 70,828 $ 65,808 $ 62,534 $ 63,955
Net interest revenue reconciliation
Net interest revenue - taxable equivalent$ 74,048 $ 65,718 $ 61,317 $ 57,617 $ 58,332
Taxable equivalent adjustment (284) (292) (326) (375) (398)
Net interest revenue (GAAP)$ 73,764 $ 65,426 $ 60,991 $ 57,242 $ 57,934
Total revenue reconciliation
Total operating revenue$ 95,032 $ 83,315 $ 77,683 $ 71,499 $ 71,355
Taxable equivalent adjustment (284) (292) (326) (375) (398)
Total revenue (GAAP)$ 94,748 $ 83,023 $ 77,357 $ 71,124 $ 70,957
Expense reconciliation
Expenses - operating$ 56,410 $ 48,525 $ 45,247 $ 43,061 $ 41,919
Merger-related and other charges 9,078 5,744 3,173 - -
Expenses (GAAP)$ 65,488 $ 54,269 $ 48,420 $ 43,061 $ 41,919
Income before taxes reconciliation
Income before taxes - operating$ 38,622 $ 34,790 $ 32,436 $ 28,438 $ 29,436
Taxable equivalent adjustment (284) (292) (326) (375) (398)
Merger-related and other charges (9,078) (5,744) (3,173) - -
Income before taxes (GAAP)$ 29,260 $ 28,754 $ 28,937 $ 28,063 $ 29,038
Income tax expense reconciliation
Income tax expense - operating$ 14,822 $ 13,064 $ 12,447 $ 10,768 $ 11,189
Taxable equivalent adjustment (284) (292) (326) (375) (398)
Merger-related and other charges, tax benefit (3,486) (1,905) (997) - -
Income tax expense (GAAP)$ 11,052 $ 10,867 $ 11,124 $ 10,393 $ 10,791
Net income reconciliation
Net income - operating$ 23,800 $ 21,726 $ 19,989 $ 17,670 $ 18,247
Merger-related and other charges, net of income tax benefit (5,592) (3,839) (2,176) - -
Net income (GAAP)$ 18,208 $ 17,887 $ 17,813 $ 17,670 $ 18,247
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating$ 23,775 $ 21,701 $ 19,972 $ 17,670 $ 18,247
Merger-related and other charges, net of income tax benefit (5,592) (3,839) (2,176) - -
Net income available to common shareholders (GAAP)$ 18,183 $ 17,862 $ 17,796 $ 17,670 $ 18,247
Diluted income per common share reconciliation
Diluted income per common share - operating$.33 $.33 $.32 $.29 $.30
Merger-related and other charges (.08) (.06) (.04) - -
Diluted income per common share (GAAP)$.25 $.27 $.28 $.29 $.30
Book value per common share reconciliation
Tangible book value per common share$ 12.06 $ 12.08 $ 12.66 $ 12.53 $ 12.15
Effect of goodwill and other intangibles 1.96 1.87 .29 .05 .05
Book value per common share (GAAP)$ 14.02 $ 13.95 $ 12.95 $ 12.58 $ 12.20
Return on tangible common equity reconciliation
Return on tangible common equity - operating 10.87 % 10.29 % 10.20 % 9.46 % 9.74 %
Effect of goodwill and other intangibles (1.69) (.75) (.30) (.12) (.14)
Return on common equity - operating 9.18 9.54 9.90 9.34 9.60
Merger-related and other charges (2.16) (1.69) (1.07) - -
Return on common equity (GAAP) 7.02 % 7.85 % 8.83 % 9.34 % 9.60 %
Return on assets reconciliation
Return on assets - operating .99 % 1.00 % 1.00 % .94 % .96 %
Merger-related and other charges (.23) (.18) (.11) - -
Return on assets (GAAP) .76 % .82 % .89 % .94 % .96 %
Allowance for loan losses to loans reconciliation
Allowance for loan losses to loans, excl. acquired loans 1.35 % 1.37 % 1.42 % 1.46 % 1.53 %
Effect of removing acquired loans from ratio (.21) (.22) (.06) - -
Allowance for loan losses to loans (GAAP) 1.14 % 1.15 % 1.36 % 1.46 % 1.53 %
Dividend payout ratio reconciliation
Dividend payout ratio - operating 18.18 % 18.18 % 15.63 % 17.24 % 16.67 %
Merger-related and other charges 5.82 4.04 2.23 - -
Dividend payout ratio (GAAP) 24.00 % 22.22 % 17.86 % 17.24 % 16.67 %
Efficiency ratio reconciliation
Efficiency ratio - operating 59.41 % 57.81 % 57.59 % 59.15 % 57.47 %
Merger-related and other charges 9.56 6.84 4.04 - -
Efficiency ratio (GAAP) 68.97 % 64.65 % 61.63 % 59.15 % 57.47 %
Average equity to assets reconciliation
Tangible common equity to assets 9.29 % 9.77 % 9.83 % 9.82 % 9.72 %
Effect of preferred equity .11 .11 .08 - -
Tangible equity to assets 9.40 9.88 9.91 9.82 9.72
Effect of goodwill and other intangibles 1.28 .51 .14 .04 .04
Equity to assets (GAAP) 10.68 % 10.39 % 10.05 % 9.86 % 9.76 %
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets 12.82 % 13.08 % 13.24 % 13.53 % 13.82 %
Effect of other comprehensive income .38 .23 .28 .19 .35
Effect of deferred tax limitation (2.05) (2.24) (2.49) (2.86) (3.11)
Effect of trust preferred .08 .08 .63 .67 1.00
Effect of preferred equity .15 .15 .17 - -
Basel III intangibles transition adjustment .10 .13 .06 .04 -
Basel III disallowed investments (.03) (.03) (.03) (.04) -
Tier I capital ratio (Regulatory) 11.45 % 11.40 % 11.86 % 11.53 % 12.06 %
(1) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Fourth quarter 2015 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
For the Twelve Months Ended
December 31,
(in thousands, except per share
data; taxable equivalent) 2015 2014 2013 2012 2011
Interest revenue reconciliation
Interest revenue - taxable equivalent$ 279,809 $ 249,969 $ 247,323 $ 267,667 $ 304,308
Taxable equivalent adjustment (1,277) (1,537) (1,483) (1,690) (1,707)
Interest revenue (GAAP)$ 278,532 $ 248,432 $ 245,840 $ 265,977 $ 302,601
Net interest revenue reconciliation
Net interest revenue - taxable equivalent$ 258,700 $ 224,418 $ 219,641 $ 229,758 $ 238,670
Taxable equivalent adjustment (1,277) (1,537) (1,483) (1,690) (1,707)
Net interest revenue (GAAP)$ 257,423 $ 222,881 $ 218,158 $ 228,068 $ 236,963
Total revenue reconciliation
Total operating revenue$ 327,529 $ 271,472 $ 210,739 $ 223,370 $ 32,577
Taxable equivalent adjustment (1,277) (1,537) (1,483) (1,690) (1,707)
Total revenue (GAAP)$ 326,252 $ 269,935 $ 209,256 $ 221,680 $ 30,870
Expense reconciliation
Expenses - operating$ 193,243 $ 162,865 $ 174,304 $ 186,774 $ 261,599
Merger-related and other charges 17,995 - - - -
Expenses (GAAP)$ 211,238 $ 162,865 $ 174,304 $ 186,774 $ 261,599
Income before taxes reconciliation
Income before taxes - operating$ 134,286 $ 108,607 $ 36,435 $ 36,596 $ (229,022)
Taxable equivalent adjustment (1,277) (1,537) (1,483) (1,690) (1,707)
Merger-related and other charges (17,995) - - - -
Income before taxes (GAAP)$ 115,014 $ 107,070 $ 34,952 $ 34,906 $ (230,729)
Income tax expense reconciliation
Income tax expense - operating$ 51,101 $ 40,987 $ (236,705) $ 2,740 $ (2,276)
Taxable equivalent adjustment (1,277) (1,537) (1,483) (1,690) (1,707)
Merger-related and other charges, tax benefit (6,388) - - - -
Income tax expense (GAAP)$ 43,436 $ 39,450 $ (238,188) $ 1,050 $ (3,983)
Net income reconciliation
Net income - operating$ 83,185 $ 67,620 $ 273,140 $ 33,856 $ (226,746)
Merger-related charges, net of income tax benefit (11,607) - - - -
Net income (GAAP)$ 71,578 $ 67,620 $ 273,140 $ 33,856 $ (226,746)
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating$ 83,118 $ 67,181 $ 261,062 $ 21,708 $ (238,584)
Merger-related charges, net of income tax benefit (11,607) - - - -
Net income available to common shareholders (GAAP)$ 71,511 $ 67,181 $ 261,062 $ 21,708 $ (238,584)
Diluted income per common share reconciliation
Diluted income per common share - operating$ 1.27 $ 1.11 $ 4.44 $.38 $ (5.97)
Merger-related and other charges (.18) - - - -
Diluted income per common share (GAAP)$ 1.09 $ 1.11 $ 4.44 $.38 $ (5.97)
Book value per common share reconciliation
Tangible book value per common share$ 12.06 $ 12.15 $ 11.26 $ 6.57 $ 6.47
Effect of goodwill and other intangibles 1.96 .05 .04 .10 .15
Book value per common share (GAAP)$14.02 $12.20 $11.30 $ 6.67 $ 6.62
Return on tangible common equity reconciliation
Return on tangible common equity - operating 10.24 % 9.32 % 47.35 % 6.27 % (96.20)%
Effect of goodwill and other intangibles (.76) (.15) (.63) (.84) 2.63
Return on common equity - operating 9.48 9.17 46.72 5.43 (93.57)
Merger-related and other charges (1.33) - - - -
Return on common equity (GAAP) 8.15 % 9.17 % 46.72 % 5.43 % (93.57)%
Return on assets reconciliation
Return on assets - operating .98 % .91 % 3.86 % .49 % (3.15)%
Merger-related charges (.13) - - - -
Return on assets (GAAP) .85 % .91 % 3.86 % .49 % (3.15)%
Allowance for loan losses to loans reconciliation
Allowance for loan losses to loans , excl. acquired loans 1.35 % 1.53 % 1.77 % 2.57 % 2.79 %
Effect of removing acquired loans from ratio (.21) - - - -
Allowance for loan losses to loans (GAAP) 1.14 % 1.53 % 1.77 % 2.57 % 2.79 %
Dividend payout ratio reconciliation
Dividend payout ratio - operating 17.32 % 9.91 % - % - % - %
Merger-related charges 2.86 - - - -
Dividend payout ratio (GAAP) 20.18 % 9.91 % - % - % - %
Efficiency ratio reconciliation
Efficiency ratio - operating 58.51 % 58.26 % 63.14 % 65.43 % 92.27 %
Merger-related charges 5.45 - - - -
Efficiency ratio (GAAP) 63.96 % 58.26 % 63.14 % 65.43 % 92.27 %
Average equity to assets reconciliation
Tangible common equity to assets 9.66 % 9.60 % 7.55 % 5.54 % 3.74 %
Effect of preferred equity .08 .07 2.76 2.84 3.88
Tangible equity to assets 9.74 9.67 10.31 8.38 7.62
Effect of goodwill and other intangibles .53 .02 .04 .09 .13
Equity to assets (GAAP) 10.27 % 9.69 % 10.35 % 8.47 % 7.75 %
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets 12.82 % 13.82 % 13.18 % 8.26 % 8.25 %
Effect of other comprehensive income .38 .35 .39 .51 (.03)
Effect of deferred tax limitation (2.05) (3.11) (4.26) - -
Effect of trust preferred .08 1.00 1.04 1.15 1.18
Effect of preferred equity .15 - 2.39 4.24 4.29
Basel III intangibles transition adjustment .10 - - - -
Basel III disallowed investments (.03) - - - -
Tier I capital ratio (Regulatory) 11.45 % 12.06 % 12.74 % 14.16 % 13.69 %
(1) December 31, September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015. Fourth quarter 2015 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2015 2014
Fourth Third Second First Fourth
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,494 $ 1,479 $ 1,266 $ 1,167 $ 1,163
Income producing commercial RE 824 818 689 636 599
Commercial & industrial 785 890 793 716 710
Commercial construction 342 319 238 230 196
Total commercial 3,445 3,506 2,986 2,749 2,668
Residential mortgage 1,029 1,062 935 864 866
Home equity lines of credit 598 585 491 465 466
Residential construction 352 334 299 291 299
Consumer installment 571 537 463 419 373
Total loans $ 5,995 $ 6,024 $ 5,174 $ 4,788 $ 4,672
LOANS BY MARKET
North Georgia $ 1,125 $ 1,130 $ 1,155 $ 1,150 $ 1,163
Atlanta MSA 1,259 1,266 1,275 1,254 1,243
North Carolina 549 546 533 539 553
Coastal Georgia 537 506 499 476 456
Gainesville MSA 254 252 257 255 257
East Tennessee 504 511 525 281 280
South Carolina 819 783 35 30 30
Specialized Lending 492 609 538 487 421
Indirect auto 456 421 357 316 269
Total loans $ 5,995 $ 6,024 $ 5,174 $ 4,788 $ 4,672

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2015 2014 Linked Year over
Fourth Third Fourth Quarter Year
(in millions)Quarter Quarter Quarter Change Change
LOANS BY CATEGORY
Owner occupied commercial RE$ 1,494 $ 1,479 $ 1,163 $ 15 $ 331
Income producing commercial RE 824 818 599 6 225
Commercial & industrial 785 890 710 (105) 75
Commercial construction 342 319 196 23 146
Total commercial 3,445 3,506 2,668 (61) 777
Residential mortgage 1,029 1,062 866 (33) 163
Home equity lines of credit 598 585 466 13 132
Residential construction 352 334 299 18 53
Consumer installment 571 537 373 34 198
Total loans$ 5,995 $ 6,024 $ 4,672 (29) 1,323
LOANS BY MARKET
North Georgia$ 1,125 $ 1,130 $ 1,163 $ (5) $ (38)
Atlanta MSA 1,259 1,266 1,243 (7) 16
North Carolina 549 546 553 3 (4)
Coastal Georgia 537 506 456 31 81
Gainesville MSA 254 252 257 2 (3)
East Tennessee 504 511 280 (7) 224
South Carolina 819 783 30 36 789
Specialized Lending 492 609 421 (117) 71
Indirect auto 456 421 269 35 187
Total loans$ 5,995 $ 6,024 $ 4,672 (29) 1,323

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions) 2015 2014 2013 2012 2011
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,494 $ 1,163 $ 1,134 $ 1,131 $ 1,112
Income producing commercial RE 824 599 623 682 710
Commercial & industrial 785 710 472 458 428
Commercial construction 342 196 149 155 164
Total commercial 3,445 2,668 2,378 2,426 2,414
Residential mortgage 1,029 866 875 829 835
Home equity lines of credit 598 466 441 385 300
Residential construction 352 299 328 382 448
Consumer installment 571 373 307 153 113
Total loans $ 5,995 $ 4,672 $ 4,329 $ 4,175 $ 4,110
LOANS BY MARKET
North Georgia $ 1,125 $ 1,163 $ 1,240 $ 1,364 $ 1,426
Atlanta MSA 1,259 1,243 1,235 1,204 1,144
North Carolina 549 553 572 579 597
Coastal Georgia 537 456 423 400 346
Gainesville MSA 254 257 255 261 265
East Tennessee 504 280 280 283 256
South Carolina 819 30 4 - -
Specialized Lending 492 421 124 46 76
Indirect auto 456 269 196 38 -
Total loans $ 5,995 $ 4,672 $ 4,329 $ 4,175 $ 4,110

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Fourth Quarter 2015
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
Second Quarter 2015
Nonperforming Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 4,878 $ 360 $ 5,238
Income producing CRE 883 - 883
Commercial & industrial 1,389 - 1,389
Commercial construction 59 382 441
Total commercial 7,209 742 7,951
Residential mortgage 8,599 1,373 9,972
Home equity lines of credit 940 54 994
Residential construction 1,358 187 1,545
Consumer installment 699 - 699
Total NPAs $ 18,805 $ 2,356 $ 21,161
Balance as a % of
Unpaid Principal 64.9% 46.6% 62.2%
NONPERFORMING ASSETS BY MARKET
North Georgia $ 6,157 $ 657 $ 6,814
Atlanta MSA 2,361 135 2,496
North Carolina 4,746 690 5,436
Coastal Georgia 659 - 659
Gainesville MSA 864 22 886
East Tennessee 1,885 852 2,737
South Carolina - - -
Specialized Lending 1,565 - 1,565
Indirect auto 568 - 568
Total NPAs $ 18,805 $ 2,356 $ 21,161
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 19,015 $ 1,158 $ 20,173
Acquisitions - 962 962
Loans placed on non-accrual 6,552 - 6,552
Payments received (3,839) - (3,839)
Loan charge-offs (1,854) - (1,854)
Foreclosures (1,069) 1,069 -
Capitalized costs - - -
Property sales - (895) (895)
Write downs - (9) (9)
Net gains (losses) on sales - 71 71
Ending Balance $ 18,805 $ 2,356 $ 21,161

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Fourth Quarter 2015 Third Quarter 2015 Second Quarter 2015
Net Charge- Net Charge- Net Charge-
Offs to Offs to Offs to
Net Average Net Average Net Average
(in thousands) Charge-Offs Loans (1) Charge-Offs Loans (1) Charge-Offs Loans (1)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE $ 861 .23% $ 236 .07% $ 285 .09%
Income producing CRE (35) (.02) (106) (.06) (276) (.17)
Commercial & industrial (719) (.34) 190 .09 (627) (.33)
Commercial construction 253 .31 59 .09 96 .16
Total commercial 360 .04 379 .05 (522) (.07)
Residential mortgage (120) (.05) 433 .18 787 .35
Home equity lines of credit 194 .13 293 .22 322 .27
Residential construction 415 .48 (124) (.16) 107 .14
Consumer installment 453 .33 436 .35 284 .26
Total $ 1,302 .09 $ 1,417 .10 $ 978 .08
NET CHARGE-OFFS BY MARKET
North Georgia $ 1,011 .36% $ 1,352 .47% $ 911 .32%
Atlanta MSA 496 .16 74 .02 138 .04
North Carolina 426 .31 183 .13 176 .13
Coastal Georgia 47 .04 19 .02 (40) (.03)
Gainesville MSA (340) (.54) (236) (.36) (233) (.36)
East Tennessee (326) (.26) 153 .12 127 .11
South Carolina (474) (.24) (247) (.34) - -
Specialized Lending 253 .18 (42) (.03) (224) (.17)
Indirect auto 209 .19 161 .17 123 .14
Total $ 1,302 .09 $ 1,417 .10 $ 978 .08
(1) Annualized.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in thousands, except per share data) 2015 2014 2015 2014
Interest revenue:
Loans, including fees $ 63,442 $ 50,677 $ 223,256 $ 196,279
Investment securities, including tax exempt of $189, $180, $705 and $738 14,952 12,375 51,848 48,493
Deposits in banks and short-term investments 968 903 3,428 3,660
Total interest revenue 79,362 63,955 278,532 248,432
Interest expense:
Deposits:
NOW 426 435 1,505 1,651
Money market 1,006 868 3,466 3,060
Savings 27 20 98 81
Time 922 1,623 3,756 7,133
Total deposit interest expense 2,381 2,946 8,825 11,925
Short-term borrowings 85 96 364 2,160
Federal Home Loan Bank advances 436 339 1,743 912
Long-term debt 2,696 2,640 10,177 10,554
Total interest expense 5,598 6,021 21,109 25,551
Net interest revenue 73,764 57,934 257,423 222,881
Provision for credit losses 300 1,800 3,700 8,500
Net interest revenue after provision for credit losses 73,464 56,134 253,723 214,381
Fee revenue:
Service charges and fees 11,500 8,446 36,825 33,073
Mortgage loan and other related fees 3,290 2,111 13,592 7,520
Brokerage fees 1,058 1,176 5,041 4,807
Gains from sales of government guaranteed loans 1,995 926 6,276 2,615
Securities gains, net 378 208 2,255 4,871
Loss from prepayment of debt - - (1,294) (4,446)
Other 3,063 1,956 9,834 7,114
Total fee revenue 21,284 14,823 72,529 55,554
Total revenue 94,748 70,957 326,252 269,935
Operating expenses:
Salaries and employee benefits 32,939 26,592 116,688 100,941
Communications and equipment 4,735 3,153 15,273 12,523
Occupancy 4,666 3,448 15,372 13,513
Advertising and public relations 978 802 3,667 3,461
Postage, printing and supplies 1,293 1,086 4,273 3,542
Professional fees 3,331 2,034 10,175 7,907
FDIC assessments and other regulatory charges 1,463 883 5,106 4,792
Merger-related and other charges 9,078 - 17,995 -
Other 7,005 3,921 22,689 16,186
Total operating expenses 65,488 41,919 211,238 162,865
Net income before income taxes 29,260 29,038 115,014 107,070
Income tax expense 11,052 10,791 43,436 39,450
Net income 18,208 18,247 71,578 67,620
Preferred stock dividends and discount accretion 25 - 67 439
Net income available to common shareholders $ 18,183 $ 18,247 $ 71,511 $ 67,181
Earnings per common share:
Basic $.25 $.30 $ 1.09 $ 1.11
Diluted .25 .30 1.09 1.11
Weighted average common shares outstanding:
Basic 72,135 60,830 65,488 60,588
Diluted 72,140 60,833 65,492 60,590

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
December 31, December 31,
(in thousands, except share and per share data) 2015 2014
ASSETS
Cash and due from banks $ 86,912 $ 77,180
Interest-bearing deposits in banks 153,451 89,074
Short-term investments - 26,401
Cash and cash equivalents 240,363 192,655
Securities available for sale 2,291,511 1,782,734
Securities held to maturity (fair value $371,658 and $425,233) 364,696 415,267
Mortgage loans held for sale 24,231 13,737
Loans, net of unearned income 5,995,441 4,672,119
Less allowance for loan losses (68,448) (71,619)
Loans, net 5,926,993 4,600,500
Premises and equipment, net 178,165 159,390
Bank owned life insurance 105,493 81,294
Accrued interest receivable 25,786 20,103
Net deferred tax asset 197,613 215,503
Derivative financial instruments 20,082 20,599
Goodwill and other intangible assets 147,420 3,641
Other assets 103,755 61,563
Total assets $ 9,626,108 $ 7,566,986
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 2,204,755 $ 1,574,317
NOW 1,975,884 1,504,887
Money market 1,599,637 1,273,283
Savings 471,129 292,308
Time:
Less than $100,000 830,301 748,478
Greater than $100,000 452,502 508,228
Brokered 346,881 425,011
Total deposits 7,881,089 6,326,512
Short-term borrowings 16,640 6,000
Federal Home Loan Bank advances 430,125 270,125
Long-term debt 165,620 129,865
Derivative financial instruments 28,825 31,997
Unsettled securities purchases 2 5,425
Accrued expenses and other liabilities 85,522 57,485
Total liabilities 8,607,823 6,827,409
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 9,992 and 0 shares issued and outstanding 9,992 -
Common stock, $1 par value; 100,000,000 shares authorized;
66,198,477 and 50,178,605 shares issued and outstanding 66,198 50,178
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
5,285,516 and 10,080,787 shares issued and outstanding 5,286 10,081
Common stock issuable; 458,953 and 357,983 shares 6,779 5,168
Capital surplus 1,286,361 1,080,508
Accumulated deficit (330,879) (387,568)
Accumulated other comprehensive loss (25,452) (18,790)
Total shareholders' equity 1,018,285 739,577
Total liabilities and shareholders' equity $ 9,626,108 $ 7,566,986

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
2015 2014
Average Avg. Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)$ 5,975,491 $ 63,509 4.22% $ 4,620,517 $ 50,883 4.37%
Taxable securities (3) 2,575,846 14,763 2.29 2,202,986 12,195 2.21
Tax-exempt securities (1)(3) 30,748 309 4.02 18,579 295 6.35
Federal funds sold and other interest-earning assets 210,341 1,065 2.03 170,703 980 2.30
Total interest-earning assets 8,792,426 79,646 3.60 7,012,785 64,353 3.65
Non-interest-earning assets:
Allowance for loan losses (69,743) (72,534)
Cash and due from banks 88,057 73,973
Premises and equipment 192,040 160,049
Other assets (3) 554,974 391,097
Total assets$ 9,557,754 $ 7,565,370
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW$ 1,865,305 426 .09 $ 1,481,414 435 .12
Money market 1,897,364 1,006 .21 1,433,680 868 .24
Savings 465,993 27 .02 291,163 20 .03
Time less than $100,000 848,469 617 .29 761,850 814 .42
Time greater than $100,000 469,301 390 .33 520,937 763 .58
Brokered time deposits 258,698 (85)(.13) 273,706 46 .07
Total interest-bearing deposits 5,805,130 - 2,381 .16 4,762,750 - 2,946 .25
Federal funds purchased and other borrowings 40,148 85 .84 24,750 96 1.54
Federal Home Loan Bank advances 191,484 436 .90 193,549 339 .69
Long-term debt 165,620 2,696 6.46 129,865 2,640 8.07
Total borrowed funds 397,252 3,217 3.21 348,164 3,075 3.50
Total interest-bearing liabilities 6,202,382 5,598 .36 5,110,914 6,021 .47
Non-interest-bearing liabilities:
Non-interest-bearing deposits 2,223,011 1,620,635
Other liabilities 111,757 95,679
Total liabilities 8,537,150 6,827,228
Shareholders' equity 1,020,604 738,142
Total liabilities and shareholders' equity$ 9,557,754 $ 7,565,370
Net interest revenue $ 74,048 $ 58,332
Net interest-rate spread 3.24% 3.18%
Net interest margin (4) 3.34% 3.31%
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate
used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $7.45 million in 2015 and pretax unrealized gains of $8.59
million in 2014 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
2015 2014
Average Avg. Average Avg.
(dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)$ 5,297,687 $ 223,713 4.22% $ 4,450,268 $ 197,039 4.43%
Taxable securities (3) 2,342,533 51,143 2.18 2,255,084 47,755 2.12
Tax-exempt securities (1)(3) 25,439 1,154 4.54 19,279 1,209 6.27
Federal funds sold and other interest-earning assets 168,494 3,799 2.25 155,803 3,966 2.55
Total interest-earning assets 7,834,153 279,809 3.57 6,880,434 249,969 3.63
Non-interest-earning assets:
Allowance for loan losses (71,001) (75,237)
Cash and due from banks 81,244 67,818
Premises and equipment 174,835 161,391
Other assets (3) 442,878 401,240
Total assets$ 8,462,109 $ 7,435,646
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW$ 1,563,911 1,505 .10 $ 1,396,373 1,651 .12
Money market 1,678,765 3,466 .21 1,389,837 3,060 .22
Savings 372,414 98 .03 277,351 81 .03
Time less than $100,000 788,737 2,840 .36 811,846 3,636 .45
Time greater than $100,000 480,623 1,983 .41 551,027 3,373 .61
Brokered time deposits 269,162 (1,067)(.40) 293,657 124 .04
Total interest-bearing deposits 5,153,612 8,825 .17 4,720,091 11,925 .25
Federal funds purchased and other borrowings 49,301 364 .74 74,541 2,160 2.90
Federal Home Loan Bank advances 250,404 1,743 .70 175,481 912 .52
Long-term debt 139,979 10,177 7.27 129,865 10,554 8.13
Total borrowed funds 439,684 12,284 2.79 379,887 13,626 3.59
Total interest-bearing liabilities 5,593,296 21,109 .38 5,099,978 25,551 .50
Non-interest-bearing liabilities:
Non-interest-bearing deposits 1,901,521 1,507,944
Other liabilities 97,890 107,523
Total liabilities 7,592,707 6,715,445
Shareholders' equity 869,402 720,201
Total liabilities and shareholders' equity$ 8,462,109 $ 7,435,646
Net interest revenue $ 258,700 $ 224,418
Net interest-rate spread 3.19% 3.13%
Net interest margin (4) 3.30% 3.26%
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate
used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $11.4 million in 2015 and pretax unrealized gains of $3.36
million in 2014 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.


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

Source:United Community Banks, Inc.