United Community Banks, Inc. Reports Net Operating Income of $21.7 Million for Third Quarter 2015, Up 23 Percent From a Year Ago

  • Operating earnings per diluted share of 33 cents, up 14 percent from a year ago
  • Operating return on assets of 1.00 percent
  • Operating return on tangible common equity of 10.3 percent
  • Completed merger with Palmetto Bancshares, Inc. and its wholly owned subsidiary, The Palmetto Bank (“Palmetto”), on September 1
  • Loans up $310 million for 2015,  or 9 percent annualized, excluding loans acquired in  mergers
  • Core transaction deposits up $519 million for 2015, or 19 percent annualized, excluding deposits acquired in the mergers

BLAIRSVILLE, Ga., Oct. 27, 2015 (GLOBE NEWSWIRE) — United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today reported net operating income of $21.7 million for the third quarter of 2015, up 23 percent from a year ago.  Operating earnings per diluted share was 33 cents, up 14 percent from a year ago.  The increase reflects strong loan, core deposit and fee revenue growth, and a lower provision for credit losses.

Operating earnings and diluted operating earnings per share exclude the effects of merger-related charges, which are not considered part of ongoing operations.  Including those charges, net income was $17.9 million for the third quarter, or 27 cents per diluted share. 

For the first nine months of 2015, United reported net income of $53.4 million, or 84 cents per diluted share.  Excluding merger-related charges, net operating income was $59.4 million, or 94 cents per diluted share.

“I am very pleased with our third quarter financial performance, which reflects the successful execution of our strategic plans,” said Jimmy Tallent, chairman and chief executive officer.  “I’m especially proud that we completed the merger with Palmetto and welcomed their banking team to the United family.

“Total loan production remained strong in the third quarter, though net loan growth tapered off a bit due to a higher level of pay-downs,” Tallent continued.  “Year-to-date, excluding loans from mergers, loan growth is $310 million, or 9 percent annualized, which is on track for our 2015 goal of mid-to-upper-single-digit loan growth.   These new loans have been funded with solid core transaction deposit growth of $519 million, or 19 percent annualized, excluding mergers. 

“Third quarter net loan growth of $53 million, excluding the Palmetto merger, was driven by loan production of $452 million across all United markets,” added Tallent.  “Our community banks originated $256 million in loan production while our specialized lending area, which includes corporate, SBA, asset-based, middle market and commercial real estate lending, produced $150 million. Healthcare lending was part of specialized lending and we recently announced the sale of this $190 million corporate healthcare lending unit, which is expected to close by mid-fourth quarter 2015.”  

Third quarter taxable-equivalent net interest revenue totaled $65.7 million, up $4.40 million from the second quarter of 2015 and up $8.75 million from the third quarter of 2014.  Core deposit growth contributed to net interest revenue with a linked-quarter increase of $204 million, or 19 percent annualized, excluding deposits acquired in the merger.  United’s Atlanta and North Georgia markets drove most of the growth.

“The acquisition of Palmetto added approximately $3.30 million to third quarter net interest revenue while loan growth accounted for the balance of the increase, which was offset partially by margin compression,” said Tallent.  “The taxable-equivalent net interest margin of 3.26 percent was down four basis points from the second quarter, and down six basis points from a year ago, reflecting higher debt costs for the funding of the Palmetto acquisition, continued competitive loan pricing pressures, and a shift toward more floating rate loans.”

The third quarter provision for credit losses was $700 thousand, down $200 thousand from the second quarter and down $1.3 million from the third quarter of 2014.  Third quarter net charge-offs were $1.42 million compared with $978 thousand in the second quarter and $3.16 million a year ago.  Strong recoveries of previously charged-off loans drove net charge-offs down in the second and third quarters of 2015 compared with third quarter 2014.  Nonperforming assets were .29 percent of total assets at quarter-end, compared with .26 percent in the second quarter and .29 percent a year ago.

Third quarter fee revenue totaled $18.3 million, up $1.03 million from the second quarter and $3.89 million from the third quarter of 2014.  Much of the increase resulted from the acquisition of Palmetto, mostly in the form of deposit service charges and mortgage fees.  Total service charges and fees were $9.34 million, up $960 thousand from the second quarter and up $1.13 million from a year ago.  Mortgage fees of $3.84 million were up $133 thousand from the second quarter and up $1.66 million from a year ago reflecting strong growth in home purchases and an increase in refinancing activities.  Closed mortgage loans totaled $141 million in the third quarter of 2015, compared with $128 million in the second quarter and $84 million in the third quarter of 2014.  During the third quarter, sales of $17.8 million in SBA loans resulted in net gains of $1.65 million.  This compares with $14.7 million in loans sold and net gains of $1.49 million in the second quarter of 2015, and $7.4 million in loans sold and net gains of $945 thousand in the third quarter of 2014.

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

Operating expenses, excluding merger-related charges of $5.74 million, were $48.5 million in the third quarter. This compares to $45.2 million in the second quarter of 2015 and $41.4 million in the third quarter of 2014.  The September 1 acquisition of Palmetto Bancshares and its wholly owned subsidiary, The Palmetto Bank, added approximately $2.70 million to third quarter operating expenses.  The May 1 acquisition of First National Bank added approximately $1.70 million to both third and second quarter operating expenses.  Operating expenses from both acquired banks are expected to decline as anticipated cost savings are realized.

Third quarter salaries and employee benefits expense totaled $29.3 million, up $1.38 million from the second quarter and $3.68 million from a year ago.  The linked-quarter increase reflects $1.1 million in additional compensation expense for the two acquired companies.  The increase from a year ago reflects the acquisitions, investment in new producers and support staff for the specialized lending area, as well as higher commissions and incentives associated with growth in mortgage loans, commercial loans and core deposits. 

Third quarter other operating expenses totaled $5.54 million, up $650 thousand from the second quarter and up $1.54 million from the third quarter of 2014.  Nearly half of the linked-quarter increase in other expenses was due to higher intangible amortization costs from the two acquisitions.  Most of the remaining linked-quarter increase reflected higher ATM network and lending support costs, while the increase from a year ago was due to higher lending support costs and an increase in servicing fees for the growing indirect auto loan portfolio.

“Palmetto merged into United on September 1 and its operating results are included in United’s from that date forward,” noted Tallent.  “System conversions are targeted for the first quarter of 2016.  First National Bank merged into United on May 1 and, during the third quarter, we successfully converted their operating systems to United and consolidated six of the combined United / FNB banking offices.  All FNB banking offices now operate under the name of United Community Bank.”

At September 30, 2015, preliminary capital ratios were as follows: Tier 1 Risk-Based of 11.0 percent; Total Risk-Based of 12.1 percent; Tier 1 Common Risk-Based of 11.0 percent; and, Tier 1 Leverage of 8.2 percent.

“All of our regulatory capital ratios remain strong, though they have declined slightly from the prior quarter due to the acquisition of Palmetto,” commented Tallent.  “During mid-August, we financed the cash portion of the Palmetto acquisition with the issuance of $85 million Senior Notes that had an average interest rate of 5.2 percent.  Additionally, on September 15, to partially offset these higher funding costs, we redeemed $32 million of trust preferred securities with an average rate of 8.4 percent.

“Our third quarter results put us well on track to complete another remarkable year,” Tallent said. “In the second quarter we achieved our earlier goal of a 1 percent operating return on assets.  Our new goal, driven by continued solid mid-to-high single-digit loan growth, is 1.10 percent for the fourth quarter of 2016.

“We are excited about executing our growth strategies to expand the franchise and add value for shareholders,” concluded Tallent.  “We warmly and enthusiastically welcome First National and Palmetto to the United team.  And, as always, we are dedicated every day to taking care of our customers – both existing and new – with the outstanding service for which our bankers are so very well known.”

Conference Call

United will hold a conference call today, Tuesday, October 27, 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 56009033.  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.

Investor Day Conference – October 8, 2015
On October 8, 2015, United held an Investor Day Conference in Atlanta, Georgia for its analysts and institutional investors.  United’s executive and senior management presented the company’s business, growth and market strategies through a series of presentations and panel discussions.  The conference was web cast on Events & Presentations from its Investor Relations page of the company’s’ website, www.ucib.com, and will remain available for replay for one year.

About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $9.4 billion in assets.  The company’s banking subsidiary, United Community Bank, is one of the Southeast’s largest full-service banks, operating 133 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 in 2015 was ranked fourteenth on the Forbes list of America’s Best Banks.  Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.

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

        

 

UNITED COMMUNITY BANKS, INC.                            
Financial Highlights                            
Selected Financial Information                            
                             
                      Third    
    2015       2014     Quarter    
(in thousands, except per share  Third     Second     First     Fourth     Third    2015-2014    
data; taxable equivalent) Quarter   Quarter   Quarter   Quarter   Quarter   Change    
INCOME SUMMARY                            
Interest revenue $ 71,120     $ 66,134     $ 62,909     $ 64,353     $ 63,338            
Interest expense   5,402       4,817       5,292       6,021       6,371            
Net interest revenue   65,718       61,317       57,617       58,332       56,967       15   %    
Provision for credit losses   700       900       1,800       1,800       2,000            
Fee revenue   18,297       17,266       15,682       14,823       14,412       27        
Total revenue   83,315       77,683       71,499       71,355       69,379       20        
Expenses – operating  (1)   48,525       45,247       43,061       41,919       41,364       17        
Income before income tax expense – operating (1)   34,790       32,436       28,438       29,436       28,015       24        
Income tax expense – operating  (1)   13,064       12,447       10,768       11,189       10,399       26        
Net income – operating  (1)   21,726       19,989       17,670       18,247       17,616       23        
Preferred dividends and discount accretion   25       17                              
Net income available to common shareholders – operating  (1)   21,701       19,972       17,670       18,247       17,616       23        
Merger-related charges, net of income tax benefit   3,839       2,176                              
Net income available to common shareholders – GAAP $ 17,862     $ 17,796     $ 17,670     $ 18,247     $ 17,616       1        
                             
PERFORMANCE MEASURES                            
Per common share:                            
Diluted income – operating  (1) $ .33     $ .32     $ .29     $ .30     $ .29       14        
Diluted income – GAAP   .27       .28       .29       .30       .29       (7 )      
Cash dividends declared   .06       .05       .05       .05       .03            
Book value   13.95       12.95       12.58       12.20       12.15       15        
Tangible book value (3)   12.08       12.66       12.53       12.15       12.10              
                             
Key performance ratios:                            
Return on tangible common equity – operating (1)(2)(3)(4)   10.29   %   10.20   %   9.46   %   9.74   %   9.55   %      
Return on common equity – operating (1)(2)(4)   9.54       9.90       9.34       9.60       9.41            
Return on common equity – GAAP (2)(4)   7.85       8.83       9.34       9.60       9.41            
Return on assets – operating (1)(4)   1.00       1.00       .94       .96       .95            
Return on assets – GAAP (4)   .82       .89       .94       .96       .95            
Dividend payout ratio – operating (1)   18.18       15.63       17.24       16.67       10.34            
Dividend payout ratio – GAAP   22.22       17.86       17.24       16.67       10.34            
Net interest margin (4)   3.26       3.30       3.31       3.31       3.32            
Efficiency ratio – operating  (1)   57.81       57.59       59.15       57.47       57.96            
Efficiency ratio – GAAP   64.65       61.63       59.15       57.47       57.96            
Average equity to average assets   10.39       10.05       9.86       9.76       9.85            
Average tangible equity to average assets (3)   9.88       9.91       9.82       9.72       9.83            
Average tangible common equity to average assets (3)   9.77       9.83       9.82       9.72       9.83            
Tangible common equity to risk-weighted assets (3)(5)(6)   12.68       13.24       13.53       13.82       14.10            
                             
ASSET QUALITY                            
Nonperforming loans $ 20,064     $ 18,805     $ 19,015     $ 17,881     $ 18,745       7        
Foreclosed properties   7,669       2,356       1,158       1,726       3,146       144        
Total nonperforming assets (NPAs)   27,733       21,161       20,173       19,607       21,891       27        
Allowance for loan losses   69,062       70,129       70,007       71,619       71,928            
Net charge-offs   1,417       978       2,562       2,509       3,155       (55 )      
Allowance for loan losses to loans   1.15   %   1.36   %   1.46   %   1.53   %   1.57   %        
Allowance for loan losses to loans, excl. acquired loans   1.37       1.42       1.46       1.53       1.57            
Net charge-offs to average loans (4)   .10       .08       .22       .22       .28            
NPAs to loans and foreclosed properties   .46       .41       .42       .42       .48            
NPAs to total assets   .29       .26       .26       .26       .29            
                             
AVERAGE BALANCES ($ in millions)                            
Loans $ 5,457     $ 5,017     $ 4,725     $ 4,621     $ 4,446       23        
Investment securities   2,396       2,261       2,203       2,222       2,231       7        
Earning assets   8,009       7,444       7,070       7,013       6,820       17        
Total assets   8,634       8,017       7,617       7,565       7,374       17        
Deposits   7,135       6,669       6,369       6,383       6,143       16        
Shareholders’ equity   897       806       751       738       726       24        
Common shares – basic (thousands)   66,294       62,549       60,905       60,830       60,776       9        
Common shares – diluted (thousands)   66,300       62,553       60,909       60,833       60,779       9        
                             
AT PERIOD END ($ in millions)                            
Loans $ 6,022     $ 5,174     $ 4,788     $ 4,672     $ 4,569       32        
Investment securities   2,457       2,322       2,201       2,198       2,222       11        
Total assets   9,414       8,246       7,664       7,567       7,526       25        
Deposits   7,905       6,808       6,438       6,327       6,241       27        
Shareholders’ equity   1,013       827       764       740       736       38        
Common shares outstanding (thousands)   71,472       62,700       60,309       60,259       60,248       19        
                             
(1)  Excludes merger-related charges.  (2)  Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (3)  Excludes effect of acquisition related intangibles and associated amortization.  (4)  Annualized.  (5) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  (6)  Third quarter 2015 ratio is preliminary.  
                             

 

UNITED COMMUNITY BANKS, INC.                
Financial Highlights                
Selected Financial Information                
                 
    For the Nine      
    Months Ended   YTD  
(in thousands, except per share   September 30,   2015-2014  
data; taxable equivalent)     2015       2014     Change  
INCOME SUMMARY                
Interest revenue   $ 200,163     $ 185,616          
Interest expense     15,511       19,530          
Net interest revenue     184,652       166,086       11   %  
Provision for credit losses     3,400       6,700          
Fee revenue     51,245       40,731       26      
Total revenue     232,497       200,117       16      
Expenses – operating  (1)     136,833       120,946       13      
Income before income tax expense – operating (1)     95,664       79,171       21      
Income tax expense – operating  (1)     36,279       29,798       22      
Net income – operating  (1)     59,385       49,373       20      
Preferred dividends and discount accretion     42       439          
Net income available to common shareholders – operating  (1)     59,343       48,934       21      
Merger-related charges, net of income tax benefit     6,015                
Net income available to common shareholders – GAAP   $ 53,328     $ 48,934       9      
                 
PERFORMANCE MEASURES                
Per common share:                
Diluted income – operating  (1)   $ .94     $ .81       16      
Diluted income – GAAP     .84       .81       4      
Cash dividends declared     .16       .06          
Book value     13.95       12.15       15      
Tangible book value (3)     12.08       12.10            
                 
Key performance ratios:                
Return on tangible common equity – operating (1)(2)(3)(4)     10.00   %   9.18   %    
Return on common equity – operating (1)(2)(4)     9.60       9.02          
Return on common equity – GAAP (2)(4)     8.63       9.02          
Return on assets – operating (1)(4)     .98       .89          
Return on assets – GAAP (4)     .88       .89          
Dividend payout ratio – operating (1)     17.02       7.41          
Dividend payout ratio – GAAP     19.05       7.41          
Net interest margin (4)     3.29       3.25          
Efficiency ratio – operating  (1)     58.15       58.54          
Efficiency ratio – GAAP     61.94       58.54          
Average equity to average assets     10.11       9.66          
Average tangible equity to average assets (3)     9.88       9.64          
Average tangible common equity to average assets (3)     9.81       9.55          
Tangible common equity to risk-weighted assets (3)(5)(6)     12.68       14.10          
                 
ASSET QUALITY                
Nonperforming loans   $ 20,064     $ 18,745        7      
Foreclosed properties     7,669       3,146        144      
Total nonperforming assets (NPAs)     27,733       21,891        27      
Allowance for loan losses     69,062       71,928          
Net charge-offs     4,957       11,369        (56 )    
Allowance for loan losses to loans     1.15   %   1.57   %      
Allowance for loan losses to loans, excl. acquired loans     1.37       1.57          
Net charge-offs to average loans (4)     .13       .35          
NPAs to loans and foreclosed properties     .46       .48          
NPAs to total assets     .29       .29          
                 
AVERAGE BALANCES ($ in millions)                
Loans   $ 5,069     $ 4,393       15      
Investment securities     2,288       2,292            
Earning assets     7,511       6,836       10      
Total assets     8,093       7,392       9      
Deposits     6,727       6,176       9      
Shareholders’ equity     818       714       15      
Common shares – basic (thousands)     63,297       60,511       5      
Common shares – diluted (thousands)     63,302       60,513       5      
                 
AT PERIOD END ($ in millions)                
Loans   $ 6,022     $ 4,569       32      
Investment securities     2,457       2,222       11      
Total assets     9,414       7,526       25      
Deposits     7,905       6,241       27      
Shareholders’ equity     1,013       736       38      
Common shares outstanding (thousands)     71,472       60,248        19      
                 
(1)  Excludes merger-related charges.  (2)  Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (3)  Excludes effect of acquisition related intangibles and associated amortization.  (4)  Annualized.  (5) September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  (6)  Third quarter 2015 ratio is preliminary.  

 

UNITED COMMUNITY BANKS, INC.                    
Non-GAAP Performance Measures Reconciliation                  
Selected Financial Information                    
                     
                     
    2015       2014    
(in thousands, except per share  Third     Second     First     Fourth     Third   
data; taxable equivalent) Quarter   Quarter   Quarter   Quarter   Quarter  
                     
Interest revenue reconciliation                    
Interest revenue – taxable equivalent $ 71,120     $ 66,134     $ 62,909     $ 64,353     $ 63,338    
Taxable equivalent adjustment   (292 )     (326 )     (375 )     (398 )     (405 )  
Interest revenue (GAAP) $ 70,828     $ 65,808     $ 62,534     $ 63,955     $ 62,933    
                     
Net interest revenue reconciliation                    
Net interest revenue – taxable equivalent $ 65,718     $ 61,317     $ 57,617     $ 58,332     $ 56,967    
Taxable equivalent adjustment   (292 )     (326 )     (375 )     (398 )     (405 )  
Net interest revenue (GAAP) $ 65,426     $ 60,991     $ 57,242     $ 57,934     $ 56,562    
                     
Total revenue reconciliation                    
Total operating revenue $ 83,315     $ 77,683     $ 71,499     $ 71,355     $ 69,379    
Taxable equivalent adjustment   (292 )     (326 )     (375 )     (398 )     (405 )  
Total revenue (GAAP) $ 83,023     $ 77,357     $ 71,124     $ 70,957     $ 68,974    
                     
Expense reconciliation                    
Expenses – operating $ 48,525     $ 45,247     $ 43,061     $ 41,919     $ 41,364    
Merger-related charges   5,744       3,173                      
Expenses (GAAP) $ 54,269     $ 48,420     $ 43,061     $ 41,919     $ 41,364    
                     
Income before taxes reconciliation                    
Income before taxes – operating $ 34,790     $ 32,436     $ 28,438     $ 29,436     $ 28,015    
Taxable equivalent adjustment   (292 )     (326 )     (375 )     (398 )     (405 )  
Merger-related charges   (5,744 )     (3,173 )                    
Income before taxes (GAAP) $ 28,754     $ 28,937     $ 28,063     $ 29,038     $ 27,610    
                     
Income tax expense reconciliation                    
Income tax expense – operating $ 13,064     $ 12,447     $ 10,768     $ 11,189     $ 10,399    
Taxable equivalent adjustment   (292 )     (326 )     (375 )     (398 )     (405 )  
Merger-related charges, tax benefit   (1,905 )     (997 )                    
Income tax expense (GAAP) $ 10,867     $ 11,124     $ 10,393     $ 10,791     $ 9,994    
                     
Net income reconciliation                    
Net income – operating $ 21,726     $ 19,989     $ 17,670     $ 18,247     $ 17,616    
Merger-related charges, net of income tax benefit   (3,839 )     (2,176 )                    
Net income (GAAP) $ 17,887     $ 17,813     $ 17,670     $ 18,247     $ 17,616    
                     
Net income available to common shareholders reconciliation                  
Net income available to common shareholders – operating $ 21,701     $ 19,972     $ 17,670     $ 18,247     $ 17,616    
Merger-related charges, net of income tax benefit   (3,839 )     (2,176 )                    
Net income available to common shareholders (GAAP) $ 17,862     $ 17,796     $ 17,670     $ 18,247     $ 17,616    
                     
Diluted income per common share reconciliation                    
Diluted income per common share – operating $ .33     $ .32     $ .29     $ .30     $ .29    
Merger-related charges   (.06 )     (.04 )                    
Diluted income per common share (GAAP) $ .27     $ .28     $ .29     $ .30     $ .29    
                     
Book value per common share reconciliation                    
Tangible book value per common share $ 12.08     $ 12.66     $ 12.53     $ 12.15     $ 12.10    
Effect of goodwill and other intangibles   1.87       .29       .05       .05       .05    
Book value per common share (GAAP) $ 13.95     $ 12.95     $ 12.58     $ 12.20     $ 12.15    
                     
Return on tangible common equity reconciliation                    
Return on tangible common equity – operating   10.29   %   10.20   %   9.46   %   9.74   %   9.55   %
Effect of goodwill and other intangibles   (.75 )     (.30 )     (.12 )     (.14 )     (.14 )  
Return on common equity – operating   9.54       9.90       9.34       9.60       9.41    
Merger-related charges   (1.69 )     (1.07 )                    
Return on common equity (GAAP)   7.85   %   8.83   %   9.34   %   9.60   %   9.41   %
                     
Return on assets reconciliation                    
Return on assets – operating   1.00   %   1.00   %   .94   %   .96   %   .95   %
Merger-related charges   (.18 )     (.11 )                    
Return on assets (GAAP)   .82   %   .89   %   .94   %   .96   %   .95   %
                     
Allowance for loan losses to loans reconciliation                    
Allowance for loan losses to loans, excl. acquired loans   1.37   %   1.42   %   1.46   %   1.53   %   1.57   %
Effect of removing acquired loans from ratio   (.22 )     (.06 )                    
Allowance for loan losses to loans (GAAP)   1.15   %   1.36   %   1.46   %   1.53   %   1.57   %
                     
Dividend payout ratio reconciliation                    
Dividend payout ratio – operating   18.18   %   15.63   %   17.24   %   16.67   %   10.34   %
Merger-related charges   4.04       2.23                      
Dividend payout ratio (GAAP)   22.22   %   17.86   %   17.24   %   16.67   %   10.34   %
                     
Efficiency ratio reconciliation                    
Efficiency ratio – operating   57.81   %   57.59   %   59.15   %   57.47   %   57.96   %
Merger-related charges   6.84       4.04                      
Efficiency ratio (GAAP)   64.65   %   61.63   %   59.15   %   57.47   %   57.96   %
                     
Average equity to assets reconciliation                    
Tangible common equity to assets   9.77   %   9.83   %   9.82   %   9.72   %   9.83   %
Effect of preferred equity   .11       .08                      
Tangible equity to assets   9.88       9.91       9.82       9.72       9.83    
Effect of goodwill and other intangibles   .51       .14       .04       .04       .02    
Equity to assets (GAAP)   10.39   %   10.05   %   9.86   %   9.76   %   9.85   %
                     
Tangible common equity to risk-weighted assets reconciliation (1)                  
Tangible common equity to risk-weighted assets   12.68   %   13.24   %   13.53   %   13.82   %   14.10   %
Effect of other comprehensive income   .22       .28       .19       .35       .34    
Effect of deferred tax limitation   .08       (2.49 )     (2.86 )     (3.11 )     (3.39 )  
Effect of trust preferred   .15       .63       .67       1.00       1.02    
Effect of preferred equity   (2.20 )     .17                      
Basel III intangibles transition adjustment   .12       .06       .04                
Basel III disallowed investments   (.02 )     (.03     (.04              
Tier I capital ratio (Regulatory)   11.03   %   11.86   %   11.53   %   12.06   %   12.07   %
                     
(1)  September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Third quarter 2015 ratios are preliminary.  
                     

 

UNITED COMMUNITY BANKS, INC.          
Non-GAAP Performance Measures Reconciliation        
Selected Financial Information          
           
           
   For the Nine Months Ended
September 30, 
   
(in thousands, except per share    
data; taxable equivalent)   2015       2014      
           
Interest revenue reconciliation          
Interest revenue – taxable equivalent $ 200,163     $ 185,616      
Taxable equivalent adjustment   (993 )     (1,139 )    
Interest revenue (GAAP) $ 199,170     $ 184,477      
           
Net interest revenue reconciliation          
Net interest revenue – taxable equivalent $ 184,652     $ 166,086      
Taxable equivalent adjustment   (993 )     (1,139 )    
Net interest revenue (GAAP) $ 183,659     $ 164,947      
           
Total revenue reconciliation          
Total operating revenue $ 232,497     $ 200,117      
Taxable equivalent adjustment   (993 )     (1,139 )    
Total revenue (GAAP) $ 231,504     $ 198,978      
           
Expense reconciliation          
Expenses – operating $ 136,833     $ 120,946      
Merger-related charges   8,917            
Expenses (GAAP) $ 145,750     $ 120,946      
           
Income before taxes reconciliation          
Income before taxes – operating $ 95,664     $ 79,171      
Taxable equivalent adjustment   (993 )     (1,139 )    
Merger-related charges   (8,917 )          
Income before taxes (GAAP) $ 85,754     $ 78,032      
           
Income tax expense reconciliation          
Income tax expense – operating $ 36,279     $ 29,798      
Taxable equivalent adjustment   (993 )     (1,139 )    
Merger-related charges, tax benefit   (2,902 )          
Income tax expense (GAAP) $ 32,384     $ 28,659      
           
Net income reconciliation          
Net income – operating $ 59,385     $ 49,373      
Merger-related charges, net of income tax benefit   (6,015 )          
Net income (GAAP) $ 53,370     $ 49,373      
           
Net income available to common shareholders reconciliation        
Net income available to common shareholders – operating $ 59,343     $ 48,934      
Merger-related charges, net of income tax benefit   (6,015 )          
Net income available to common shareholders (GAAP) $ 53,328     $ 48,934      
           
Diluted income per common share reconciliation          
Diluted income per common share – operating $ .94     $ .81      
Merger-related charges   (.10 )          
Diluted income per common share (GAAP) $ .84     $ .81      
           
Book value per common share reconciliation          
Tangible book value per common share $ 12.08     $ 12.10      
Effect of goodwill and other intangibles   1.87       .05      
Book value per common share (GAAP) $ 13.95     $ 12.15      
           
Return on tangible common equity reconciliation          
Return on tangible common equity – operating   10.00   %   9.18   %  
Effect of goodwill and other intangibles   (.40 )     (.16 )    
Return on common equity – operating   9.60       9.02      
Merger-related charges   (.97 )          
Return on common equity (GAAP)   8.63   %   9.02   %  
           
Return on assets reconciliation          
Return on assets – operating   .98   %   .89   %  
Merger-related charges   (.10 )          
Return on assets (GAAP)   .88   %   .89   %  
           
Allowance for loan losses to loans reconciliation          
Allowance for loan losses to loans, excl. acquired loans   1.37   %   1.57   %  
Effect of removing acquired loans from ratio   (.22 )          
Allowance for loan losses to loans (GAAP)   1.15   %   1.57   %  
           
Dividend payout ratio reconciliation          
Dividend payout ratio – operating   17.02   %   7.41   %  
Merger-related charges   2.03            
Dividend payout ratio (GAAP)   19.05   %   7.41   %  
           
Efficiency ratio reconciliation          
Efficiency ratio – operating   58.15   %   58.54   %  
Merger-related charges   3.79            
Efficiency ratio (GAAP)   61.94   %   58.54   %  
           
Average equity to assets reconciliation          
Tangible common equity to assets   9.81   %   9.55   %  
Effect of preferred equity   .07       .09      
Tangible equity to assets   9.88       9.64      
Effect of goodwill and other intangibles   .23       .02      
Equity to assets (GAAP)   10.11   %   9.66   %  
           
Tangible common equity to risk-weighted assets reconciliation (1)        
Tangible common equity to risk-weighted assets   12.68   %   14.10   %  
Effect of other comprehensive income   .22       .34      
Effect of deferred tax limitation   .08       (3.39 )    
Effect of trust preferred   .15       1.02      
Effect of preferred equity   (2.20 )          
Basel III intangibles transition adjustment   .12            
Basel III disallowed investments   (.02 )          
Tier I capital ratio (Regulatory)   11.03   %   12.07   %  
           
(1)  September 30, June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.  Third quarter 2015 ratios are preliminary.    
           

 

UNITED COMMUNITY BANKS, INC.              
Financial Highlights                    
Loan Portfolio Composition at Period-End            
                     
                     
     2015
   2014
     Third     Second     First     Fourth     Third 
(in millions)   Quarter   Quarter   Quarter   Quarter   Quarter
LOANS BY CATEGORY                    
Owner occupied commercial RE   $ 1,479     $ 1,266     $ 1,167     $ 1,163     $ 1,153  
Income producing commercial RE     818       689       636       599       605  
Commercial & industrial     890       793       716       710       650  
Commercial construction     319       238       230       196       181  
Total commercial     3,506       2,986       2,749       2,668       2,589  
Residential mortgage     1,060       935       864       866       866  
Home equity lines of credit     585       491       465       466       459  
Residential construction     334       299       291       299       307  
Consumer installment     537       463       419       373       348  
Total loans   $ 6,022     $ 5,174     $ 4,788     $ 4,672     $ 4,569  
                     
LOANS BY MARKET                    
North Georgia   $ 1,128     $ 1,155     $ 1,150     $ 1,163     $ 1,168  
Atlanta MSA     1,266       1,275       1,254       1,243       1,245  
North Carolina     546       533       539       553       553  
Coastal Georgia     506       499       476       456       444  
Gainesville MSA     252       257       255       257       254  
East Tennessee     511       525       281       280       281  
South Carolina     783       35       30       30       21  
Specialized Lending     609       538       487       421       360  
Indirect auto     421       357       316       269       243  
Total loans   $ 6,022     $ 5,174     $ 4,788     $ 4,672     $ 4,569  
                     

 

UNITED COMMUNITY BANKS, INC.                
Financial Highlights                      
Loan Portfolio Composition at Period-End              
                       
                       
     2015
    2014   Linked   Year over
     Third     Second       Third     Quarter    Year
(in millions)   Quarter   Quarter   Quarter    Change   Change 
LOANS BY CATEGORY                      
Owner occupied commercial RE   $   1,479     $   1,266       $   1,153     $   213     $   326  
Income producing commercial RE       818         689           605         129         213  
Commercial & industrial       890         793           650         97         240  
Commercial construction       319         238           181         81         138  
Total commercial       3,506         2,986           2,589         520         917  
Residential mortgage       1,060         935           866         125         194  
Home equity lines of credit       585         491           459         94         126  
Residential construction       334         299           307         35         27  
Consumer installment       537         463           348         74         189  
Total loans   $   6,022     $   5,174       $   4,569         848         1,453  
                       
LOANS BY MARKET                      
North Georgia   $   1,128     $   1,155       $   1,168         (27 )       (40 )
Atlanta MSA       1,266         1,275           1,245         (9 )       21  
North Carolina       546         533           553         13         (7 )
Coastal Georgia       506         499           444         7         62  
Gainesville MSA       252         257           254         (5 )       (2 )
East Tennessee       511         525           281         (14 )       230  
South Carolina       783         35           21         748         762  
Specialized Lending       609         538           360         71         249  
Indirect auto       421         357           243         64         178  
Total loans   $   6,022     $   5,174       $   4,569         848         1,453  
                       
                       

 

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                  
                   
                   
    First Quarter 2015
     Nonperforming     Foreclosed     Total 
(in thousands)   Loans   Properties   NPAs
NONPERFORMING ASSETS BY CATEGORY            
Owner occupied CRE   $   4,360     $   173     $   4,533  
Income producing CRE       835         –          835  
Commercial & industrial       1,629         –          1,629  
Commercial construction       60         –          60  
Total commercial       6,884         173         7,057  
Residential mortgage       8,669         796         9,465  
Home equity lines of credit       693         50         743  
Residential construction       2,127         139         2,266  
Consumer installment       642         –          642  
Total NPAs   $   19,015     $   1,158     $   20,173  
Balance as a % of                  
Unpaid Principal     72.0 %     56.6 %     70.9 %
                   
NONPERFORMING ASSETS BY MARKET              
North Georgia   $   6,101     $   662     $   6,763  
Atlanta MSA       1,903         227         2,130  
North Carolina       5,321         159         5,480  
Coastal Georgia       901         –          901  
Gainesville MSA       781         22         803  
East Tennessee       1,808         30         1,838  
South Carolina       –          36         36  
Specialized Lending       1,700         22         1,722  
Indirect auto       500         –          500  
Total NPAs   $   19,015     $   1,158     $   20,173  
                   
                   
NONPERFORMING ASSETS ACTIVITY              
Beginning Balance   $   17,881     $   1,726     $   19,607  
Acquisitions       –          –          –   
Loans placed on non-accrual       5,944         –          5,944  
Payments received       (1,513 )       –          (1,513 )
Loan charge-offs       (2,838 )       –          (2,838 )
Foreclosures       (459 )       459         –   
Capitalized costs       –          –          –   
Property sales       –          (1,108 )       (1,108 )
Write downs       –          (166 )       (166 )
Net gains (losses) on sales       –          247         247  
Ending Balance   $   19,015     $   1,158     $   20,173  
                   

 

UNITED COMMUNITY BANKS, INC.                                                      
Financial Highlights                                                            
Credit Quality                                                            
                                                             
                                                             
    Third Quarter 2015   Second Quarter 2015   First 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   $ 236     .07   %   $ 285     .09   %   $ 357     .12   %                
Income producing CRE     (106 )   (.06 )       (276 )   (.17 )       241     .16                      
Commercial & industrial     190     .09         (627 )   (.33)         341     .19                    
Commercial construction     59     .09         96     .16         22     .04                    
Total commercial     379     .05         (522 )   (.07 )       961     .14                    
Residential mortgage     433     .18         787     .35         416     .20                    
Home equity lines of credit     293     .22         322     .27         59     .05                      
Residential construction     (124 )   (.16 )       107     .14         1,061     1.46                    
Consumer installment     436     .35         284     .26         65     .07                    
Total   $ 1,417     .10       $ 978     .08       $ 2,562     .22                    
                                                             
                                                             
NET CHARGE-OFFS BY MARKET                                                        
North Georgia   $ 1,352     .47   %   $ 911     .32   %   $ 1,053     .37   %                
Atlanta MSA     74     .02         138     .04         204     .07                    
North Carolina     183     .13         176     .13         666     .49                    
Coastal Georgia     19     .02         (40 )   (.03 )       134     .12                    
Gainesville MSA     (236 )   (.36 )       (233 )   (.36 )       (65 )   (.10 )                  
East Tennessee     153     .12         127     .11         471     .68                    
South Carolina     (247 )   (.34 )                                            
Specialized Lending     (42 )   (.03 )       (224 )   (.17 )       (16 )   (.01 )                    
Indirect auto     161     .17         123     .14         115     .16                      
Total   $ 1,417     .10       $ 978     .08       $ 2,562     .22                    
                                                 
(1)  Annualized.                  

 

UNITED COMMUNITY BANKS, INC.                  
Consolidated Statement of Income (Unaudited)                  
                   
    Three Months Ended   Nine Months Ended  
    September 30,   September 30,  
(in thousands, except per share data)     2015       2014       2015       2014    
                   
Interest revenue:                  
Loans, including fees   $ 57,174     $ 49,653     $ 159,814     $ 145,602    
Investment securities, including tax exempt of $177, $177, $516 and $558     12,801       12,346       36,896       36,118    
Deposits in banks and short-term investments     853       934       2,460       2,757    
Total interest revenue     70,828       62,933       199,170       184,477    
                   
Interest expense:                  
Deposits:                  
NOW     337       365       1,079       1,216    
Money market     981       872       2,460       2,192    
Savings     25       20       71       61    
Time     830       1,721       2,834       5,510    
Total deposit interest expense     2,173       2,978       6,444       8,979    
Short-term borrowings     99       316       279       2,064    
Federal Home Loan Bank advances     461       435       1,307       573    
Long-term debt     2,669       2,642       7,481       7,914    
Total interest expense     5,402       6,371       15,511       19,530    
Net interest revenue     65,426       56,562       183,659       164,947    
Provision for credit losses     700       2,000       3,400       6,700    
Net interest revenue after provision for credit losses     64,726       54,562       180,259       158,247    
                   
Fee revenue:                  
Service charges and fees     9,335       8,202       25,325       24,627    
Mortgage loan and other related fees     3,840       2,178       10,302       5,409    
Brokerage fees     1,200       1,209       3,983       3,631    
Gains from sales of SBA loans     1,646       945       4,281       1,689    
Securities gains, net     325       11       1,877       4,663    
Loss from prepayment of debt     (256 )           (1,294 )     (4,446 )  
Other     2,207       1,867       6,771       5,158    
Total fee revenue     18,297       14,412       51,245       40,731    
Total revenue     83,023       68,974       231,504       198,978    
                   
Operating expenses:                  
Salaries and employee benefits     29,342       25,666       83,749       74,349    
Communications and equipment     3,963       3,094       10,538       9,370    
Occupancy     4,013       3,425       10,706       10,065    
Advertising and public relations     812       894       2,689       2,659    
Postage, printing and supplies     1,049       876       2,980       2,456    
Professional fees     2,668       2,274       6,844       5,873    
FDIC assessments and other regulatory charges     1,136       1,131       3,643       3,909    
Merger-related charges     5,744             8,917          
Other     5,542       4,004       15,684       12,265    
Total operating expenses     54,269       41,364       145,750       120,946    
Net income before income taxes     28,754       27,610       85,754       78,032    
Income tax expense     10,867       9,994       32,384       28,659    
Net income     17,887       17,616       53,370       49,373    
Preferred stock dividends and discount accretion     25             42       439    
Net income available to common shareholders   $ 17,862     $ 17,616     $ 53,328     $ 48,934    
                   
Earnings per common share:                  
Basic   $ .27     $ .29     $ .84     $ .81    
Diluted     .27       .29       .84       .81    
Weighted average common shares outstanding:                  
Basic     66,294       60,776       63,297       60,511    
Diluted     66,300       60,779       63,302       60,513    
                   

 

UNITED COMMUNITY BANKS, INC.            
Consolidated Balance Sheet (Unaudited)            
             
    September 30,   December 31,   September 30,
(in thousands, except share and per share data)     2015       2014       2014  
             
ASSETS            
Cash and due from banks   $ 93,975     $ 77,180     $ 75,268  
Interest-bearing deposits in banks     112,964       89,074       117,399  
Short-term investments           26,401       23,397  
Cash and cash equivalents     206,939       192,655       216,064  
Securities available for sale     2,099,868       1,782,734       1,789,667  
Securities held to maturity (fair value $368,096, $425,233 and $440,311)     357,549       415,267       432,418  
Mortgage loans held for sale     24,279       13,737       20,004  
Loans, net of unearned income     6,022,394       4,672,119       4,568,886  
Less allowance for loan losses     (69,062 )     (71,619 )     (71,928 )
Loans, net     5,953,332       4,600,500       4,496,958  
Premises and equipment, net     192,992       159,390       160,454  
Bank owned life insurance     105,368       81,294       81,101  
Accrued interest receivable     24,563       20,103       19,908  
Net deferred tax asset     197,116       215,503       224,734  
Derivative financial instruments     19,906       20,599       22,221  
Goodwill and other intangible assets     141,415       3,641       3,910  
Other assets     90,669       61,563       58,450  
Total assets   $ 9,413,996     $ 7,566,986     $ 7,525,889  
LIABILITIES AND SHAREHOLDERS’ EQUITY            
Liabilities:            
Deposits:            
Demand   $ 2,174,799     $ 1,574,317     $ 1,561,020  
NOW     1,754,614       1,504,887       1,399,449  
Money market     1,651,592       1,273,283       1,281,526  
Savings     459,323       292,308       287,797  
Time:            
Less than $100,000     865,369       748,478       774,201  
Greater than $100,000     482,567       508,228       531,428  
Brokered     516,748       425,011       405,308  
Total deposits     7,905,012       6,326,512       6,240,729  
Short-term borrowings     18,839       6,000       6,001  
Federal Home Loan Bank advances     200,125       270,125       330,125  
Long-term debt     165,620       129,865       129,865  
Derivative financial instruments     27,401       31,997       36,171  
Unsettled securities purchases           5,425        
Accrued expenses and other liabilities     83,862       57,485       46,573  
Total liabilities     8,400,859       6,827,409       6,789,464  
Shareholders’ equity:            
Preferred stock, $1 par value; 10,000,000 shares authorized;            
Series H; $1,000 stated value; 9,992 shares issued and outstanding     9,992              
Common stock, $1 par value; 100,000,000 shares authorized;            
63,186,437, 50,178,605 and 50,167,191 shares issued and outstanding     63,186       50,178       50,167  
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;            
8,285,516, 10,080,787 and 10,080,787 shares issued and outstanding     8,286       10,081       10,081  
Common stock issuable; 454,870, 357,983 and 354,961 shares     6,670       5,168       5,116  
Capital surplus     1,284,877       1,080,508       1,091,555  
Accumulated deficit     (344,746 )     (387,568 )     (402,773 )
Accumulated other comprehensive loss     (15,128 )     (18,790 )     (17,721 )
Total shareholders’ equity     1,013,137       739,577       736,425  
Total liabilities and shareholders’ equity   $ 9,413,996     $ 7,566,986     $ 7,525,889  
             

 

UNITED COMMUNITY BANKS, INC.                          
Average Consolidated Balance Sheets and Net Interest Analysis                    
For the Three Months Ended September 30,                          
                           
        2015                 2014        
   Average      Avg.        Average      Avg.    
(dollars in thousands, taxable equivalent)  Balance     Interest  Rate        Balance     Interest  Rate    
Assets:                          
Interest-earning assets:                          
Loans, net of unearned income (1)(2) $   5,457,158     $   57,258   4.16   %   $   4,445,947     $   49,853   4.45 %  
Taxable securities (3)     2,367,417         12,624   2.13           2,212,116         12,169   2.20    
Tax-exempt securities (1)(3)     28,889         290   4.02           18,794         290   6.17    
Federal funds sold and other interest-earning assets     155,957         948   2.43           143,169         1,026   2.87    
                           
Total interest-earning assets     8,009,421         71,120   3.53           6,820,026         63,338   3.69    
Non-interest-earning assets:                          
Allowance for loan losses     (71,090 )                 (74,146 )          
Cash and due from banks     80,678                   71,224            
Premises and equipment     179,463                   161,315            
Other assets (3)     435,060                   395,184            
Total assets $   8,633,532               $   7,373,603            
                           
Liabilities and Shareholders’ Equity:                          
Interest-bearing liabilities:                          
Interest-bearing deposits:                          
NOW $   1,491,801         337   .09       $   1,331,806         365   .11    
Money market     1,737,740         981   .22           1,387,042         872   .25    
Savings     386,254         25   .03           282,746         20   .03    
Time less than $100,000     793,755         708   .35           791,289         876   .44    
Time greater than $100,000     484,074         447   .37           542,216