10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

FORM 10-Q

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2015

OR

☐     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ___________ to ___________

Commission file number 001-35095

UNITED COMMUNITY BANKS, INC.

(Exact name of registrant as specified in its charter)

Georgia	58-1807304
(State of Incorporation)	(I.R.S. Employer Identification No.)

125 Highway 515 East Blairsville, Georgia	30512
Address of Principal Executive Offices	(Zip Code)

(706) 781-2265

(Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ☒  NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES ☒  NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	Smaller Reporting Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

YES ☐ NO ☒

Common stock, par value $1 per share 54,416,549 shares voting and 8,285,516 shares non-voting outstanding as of July 31, 2015.

INDEX 

PART I - Financial Information
	Item 1.	Financial Statements.
		Consolidated Statement of Income (unaudited) for the Three and Six Months Ended June 30, 2015 and 2014	3
		Consolidated Statement of Comprehensive Income (unaudited) for the Three and Six Months Ended June 30, 2015 and 2014	4
		Consolidated Balance Sheet (unaudited) at June 30, 2015, December 31, 2014 and June 30, 2014	5
		Consolidated Statement of Changes in Shareholders’ Equity (unaudited) for the Six Months Ended June 30, 2015 and 2014	6
		Consolidated Statement of Cash Flows (unaudited) for the Six Months Ended June 30, 2015 and 2014	7
		Notes to Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	42
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	67
	Item 4.	Controls and Procedures.	67
PART II - Other Information
	Item 1.	Legal Proceedings.	67
	Item 1A.	Risk Factors.	67
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	68
	Item 3.	Defaults Upon Senior Securities.	68
	Item 4.	Mine Safety Disclosures.	68
	Item 5.	Other Information.	68
	Item 6.	Exhibits.	69

2

Part I – Financial Information 

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands, except per share data)	2015		2014			2015			2014
Interest revenue:
Loans, including fees	$	52,976	$	48,261		$	102,640		$	95,949
Investment securities, including tax exempt of $181, $193, $339 and $381		12,037		12,165			24,095			23,772
Deposits in banks and short-term investments		795		980			1,607			1,823
Total interest revenue		65,808		61,406			128,342			121,544
Interest expense:
Deposits:
NOW		348		411			742			851
Money market		806		757			1,479			1,320
Savings		26		21			46			41
Time		895		2,018			2,004			3,789
Total deposit interest expense		2,075		3,207			4,271			6,001
Short-term borrowings		82		908			180			1,748
Federal Home Loan Bank advances		454		80			846			138
Long-term debt		2,206		2,638			4,812			5,272
Total interest expense		4,817		6,833			10,109			13,159
Net interest revenue		60,991		54,573			118,233			108,385
Provision for credit losses		900		2,200			2,700			4,700
Net interest revenue after provision for credit losses		60,091		52,373			115,533			103,685
Fee revenue:
Service charges and fees		8,375		8,527			15,990			16,425
Mortgage loan and other related fees		3,707		1,877			6,462			3,231
Brokerage fees		1,232		1,245			2,783			2,422
Gains from sales of government guaranteed loans		1,494		744			2,635			744
Securities gains, net		13		4,435			1,552			4,652
Loss from prepayment of debt		-		(4,446	)		(1,038	)		(4,446	)
Other		2,445		1,761			4,564			3,291
Total fee revenue		17,266		14,143			32,948			26,319
Total revenue		77,357		66,516			148,481			130,004
Operating expenses:
Salaries and employee benefits		27,961		24,287			54,407			48,683
Communications and equipment		3,304		3,037			6,575			6,276
Occupancy		3,415		3,262			6,693			6,640
Advertising and public relations		1,127		1,139			1,877			1,765
Postage, printing and supplies		993		804			1,931			1,580
Professional fees		2,257		2,172			4,176			3,599
FDIC assessments and other regulatory charges		1,298		1,425			2,507			2,778
Merger-related charges		3,173		-			3,173			-
Other		4,892		4,406			10,142			8,261
Total operating expenses		48,420		40,532			91,481			79,582
Net income before income taxes		28,937		25,984			57,000			50,422
Income tax expense		11,124		9,627			21,517			18,665
Net income		17,813		16,357			35,483			31,757
Preferred stock dividends and discount accretion		17		-			17			439
Net income available to common shareholders	$	17,796	$	16,357		$	35,466		$	31,318
Earnings per common share:
Basic	$	.28	$	.27		$	.57		$	.52
Diluted		.28		.27			.57			.52
Weighted average common shares outstanding:
Basic		62,549		60,712			61,730			60,386
Diluted		62,553		60,714			61,734			60,388

See accompanying notes to consolidated financial statements.

3

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Comprehensive Income (Unaudited)
(in thousands)	Three Months Ended June 30,									Six Months Ended June 30,
2015	Before-tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before-tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Net income	$	28,937		$	(11,124	)	$	17,813		$	57,000		$	(21,517	)	$	35,483
Other comprehensive income:
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during period		(10,875	)		4,032			(6,843	)		3,114			(1,273	)		1,841
Reclassification adjustment for gains included in net income		(13	)		5			(8	)		(1,552	)		603			(949	)
Net unrealized gains (losses)		(10,888	)		4,037			(6,851	)		1,562			(670	)		892
Amortization of losses included in net income on available- for-sale securities transferred to held-to-maturity		289			(105	)		184			773			(287	)		486
Net unrealized gains		289			(105	)		184			773			(287	)		486
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges		455			(177	)		278			880			(342	)		538
Unrealized losses on derivative financial instruments accounted for as cash flow hedges		-			-			-			(471	)		183			(288	)
Net unrealized losses		455			(177	)		278			409			(159	)		250
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan		159			(62	)		97			318			(124	)		194
Net defined benefit pension plan activity		159			(62	)		97			318			(124	)		194
Total other comprehensive income		(9,985	)		3,693			(6,292	)		3,062			(1,240	)		1,822
Comprehensive income	$	18,952		$	(7,431	)	$	11,521		$	60,062		$	(22,757	)	$	37,305
2014
Net income	$	25,984		$	(9,627	)	$	16,357		$	50,422		$	(18,665	)	$	31,757
Other comprehensive income:
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during period		11,184			(4,216	)		6,968			15,053			(5,657	)		9,396
Reclassification adjustment for gains included in net income		(4,435	)		1,725			(2,710	)		(4,652	)		1,817			(2,835	)
Net unrealized gains		6,749			(2,491	)		4,258			10,401			(3,840	)		6,561
Amortization of gains included in net income on available-for-sale securities transferred to held-to-maturity		409			(154	)		255			739			(277	)		462
Net unrealized gains		409			(154	)		255			739			(277	)		462
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges		573			(223	)		350			670			(261	)		409
Unrealized losses on derivative financial instruments accounted for as cash flow hedges		(3,547	)		1,380			(2,167	)		(6,379	)		2,482			(3,897	)
Net unrealized losses		(2,974	)		1,157			(1,817	)		(5,709	)		2,221			(3,488	)
Net actuarial gain on defined benefit pension plan		-			-			-			296			(115	)		181
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan		92			(36	)		56			183			(71	)		112
Net defined benefit pension plan activity		92			(36	)		56			479			(186	)		293
Total other comprehensive income		4,276			(1,524	)		2,752			5,910			(2,082	)		3,828
Comprehensive income	$	30,260		$	(11,151	)	$	19,109		$	56,332		$	(20,747	)	$	35,585

See accompanying notes to consolidated financial statements.

4

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
(in thousands, except share and per share data)	June 30, 2015			December 31, 2014			June 30, 2014
ASSETS
Cash and due from banks	$	80,865		$	77,180		$	91,791
Interest-bearing deposits in banks		94,032			89,074			100,270
Short-term investments		30,000			26,401			47,999
Cash and cash equivalents		204,897			192,655			240,060
Securities available-for-sale		1,942,319			1,782,734			1,741,268
Securities held-to-maturity (fair value $388,066, $425,233 and $458,864)		379,757			415,267			448,752
Mortgage loans held for sale		22,003			13,737			14,918
Loans, net of unearned income		5,173,517			4,672,119			4,410,285
Less allowance for loan losses		(70,129	)		(71,619	)		(73,248	)
Loans, net		5,103,388			4,600,500			4,337,037
Premises and equipment, net		173,313			159,390			161,614
Bank owned life insurance		92,952			81,294			80,922
Accrued interest receivable		21,030			20,103			19,141
Net deferred tax asset		195,746			215,503			233,149
Derivative financial instruments		21,728			20,599			22,024
Goodwill and other intangible assets		20,190			3,641			2,731
Other assets		68,980			61,563			50,450
Total assets	$	8,246,303		$	7,566,986		$	7,352,066
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	1,847,696		$	1,574,317		$	1,519,635
NOW		1,416,279			1,504,887			1,334,883
Money market		1,406,352			1,273,283			1,245,912
Savings		350,049			292,308			279,203
Time:
Less than $100,000		792,300			748,478			805,289
Greater than $100,000		465,347			508,228			554,310
Brokered		529,920			425,011			424,313
Total deposits		6,807,943			6,326,512			6,163,545
Short-term borrowings		25,000			6,000			76,256
Federal Home Loan Bank advances		385,125			270,125			175,125
Long-term debt		113,901			129,865			129,865
Derivative financial instruments		32,374			31,997			36,545
Unsettled securities purchases		-			5,425			7,264
Accrued expenses and other liabilities		54,728			57,485			41,497
Total liabilities		7,419,071			6,827,409			6,630,097
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;
54,414,863, 50,178,605 and 50,058,295 shares issued and outstanding		54,415			50,178			50,058
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; 413,014, 357,983 and 314,039 shares		6,071			5,168			4,649
Capital surplus		1,123,730			1,080,508			1,091,780
Accumulated deficit		(358,294	)		(387,568	)		(418,583	)
Accumulated other comprehensive loss		(16,968	)		(18,790	)		(16,016	)
Total shareholders’ equity		827,232			739,577			721,969
Total liabilities and shareholders’ equity	$	8,246,303		$	7,566,986		$	7,352,066

See accompanying notes to consolidated financial statements.

5

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Changes in Shareholders' Equity (Unaudited)

For the Six Months Ended June 30,

(in thousands, except share and per share data)											Non-Voting Common Stock												Accumulated Other Comprehensive Income (Loss)			Total
														Common Stock Issuable			Capital Surplus			Accumulated Deficit
	Series B			Series D			Series H		Common Stock
Balance, December 31, 2013	$	105,000		$	16,613		$	-	$	46,243	$	13,188		$	3,930		$	1,078,676		$	(448,091	)	$	(19,844	)	$	795,715
Net income																					31,757						31,757
Other comprehensive income																								3,828			3,828
Redemption of Series B preferred stock  (105,000 shares)		(105,000	)																								(105,000	)
Redemption of Series D preferred stock  (16,613 shares)					(16,613	)																					(16,613	)
Common stock issued at market (640,000 shares)										640								11,566									12,206
Common stock issued to dividend reinvestment plan and employee benefit plans(19,299 shares)										19								309									328
Conversion of non-voting common stock to voting (3,107,419 shares)										3,107		(3,107	)														-
Amortization of stock option and restricted stock awards																		2,228									2,228
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (40,751 shares issued, 72,797 shares deferred)										41					749			(1,140	)								(350	)
Deferred compensation plan, net, including dividend equivalents															119												119
Shares issued from deferred compensation plan (7,481 shares)										8					(149	)		141									-
Common stock dividends ($.03 per share)																					(1,810	)					(1,810	)
Preferred stock dividends:
Series B																					(159	)					(159	)
Series D																					(280	)					(280	)
Balance, June 30, 2014	$	-		$	-		$	-	$	50,058	$	10,081		$	4,649		$	1,091,780		$	(418,583	)	$	(16,016	)	$	721,969
Balance, December 31, 2014	$	-		$	-		$	-	$	50,178	$	10,081		$	5,168		$	1,080,508		$	(387,568	)	$	(18,790	)	$	739,577
Net income																					35,483						35,483
Other comprehensive income																								1,822			1,822
Common stock issued to dividend reinvestment plan and to employee benefit plans (7,661 shares)										8								122									130
Conversion of non-voting common stock to voting common stock 1,795,271 shares)										1,795		(1,795	)														-
Common and preferred stock issued for acquisition (2,358,503 common shares and 9,992 preferred shares)								9,992		2,359								41,533									53,884
Amortization of stock option and restricted stock awards																		2,178									2,178
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (60,698 shares issued, 59,685 shares deferred)										61					852			(1,294	)								(381	)
Deferred compensation plan, net, including dividend equivalents															190			(1	)								189
Shares issued from deferred compensation plan (14,125 shares)										14					(139	)		125									-
Common stock dividends ($.10 per share)																					(6,192	)					(6,192	)
Tax on option exercise and restricted stock vesting																		559									559
Preferred stock dividends:
Series H																					(17	)					(17	)
Balance, June 30, 2015	$	-		$	-		$	9,992	$	54,415	$	8,286		$	6,071		$	1,123,730		$	(358,294	)	$	(16,968	)	$	827,232

See accompanying notes to consolidated financial statements.

6

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Cash Flows (Unaudited)

	Six Months Ended June 30,
(in thousands)	2015			2014
Operating activities:
Net income	$	35,483		$	31,757
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion		10,896			9,966
Provision for credit losses		2,700			4,700
Stock based compensation		2,178			2,228
Deferred income tax benefit		18,519			18,716
Securities gains, net		(1,552	)		(4,652	)
Gains from sales of government guaranteed loans		(2,635	)		-
Net gains on sale of other assets		(83	)		-
Net gains and write downs on sales of other real estate owned		(143	)		(362	)
Loss on prepayment of borrowings		1,038			4,446
Changes in assets and liabilities:
Other assets and accrued interest receivable		12			(2,567	)
Accrued expenses and other liabilities		(2,997	)		(19,691	)
Mortgage loans held for sale		(6,924	)		(4,599	)
Net cash provided by operating activities		56,492			39,942
Investing activities:
Investment securities held to maturity:
Proceeds from maturities and calls of securities held to maturity:		35,538			31,159
Purchases of securities held to maturity		-			(173	)
Investment securities available for sale:
Proceeds from sales of securities available for sale		136,817			390,227
Proceeds from maturities and calls of securities available for sale		134,521			111,378
Purchases of securities available for sale		(312,357	)		(411,443	)
Net increase in loans		(264,702	)		(55,199	)
Funds (paid to) collected from FDIC under loss sharing agreements		(1,198	)		2,112
Proceeds from sales of premises and equipment		147			2,392
Purchases of premises and equipment		(5,055	)		(1,934	)
Net cash received (paid) for acquisition		44,594			(31,243	)
Proceeds from sale of notes		-			4,561
Proceeds from sale of other real estate		1,434			5,877
Net cash (used in) provided by investing activities		(230,261	)		47,714
Financing activities:
Net change in deposits		111,681			(37,960	)
Net change in short-term borrowings		3,460			18,569
Repayments of trust preferred securities		(15,998	)		-
Proceeds from FHLB advances		1,060,000			560,000
Repayments of FHLB advances		(967,070	)		(505,000	)
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans		130			328
Proceeds from issuance of common stock, net of issuance costs		-			12,206
Retirement of preferred stock		-			(121,613	)
Cash dividends on common stock		(6,192	)		(1,810	)
Cash dividends on preferred stock		-			(1,214	)
Net cash provided by (used in) financing activities		186,011			(76,494	)
Net change in cash and cash equivalents		12,242			11,162
Cash and cash equivalents at beginning of period		192,655			228,898
Cash and cash equivalents at end of period	$	204,897		$	240,060
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	10,993		$	13,558
Income taxes		2,791			2,044
Unsettled securities purchases		-			7,264
Unsettled government guaranteed loan sales		6,013			-
Transfers of loans to foreclosed properties		1,528			6,054
Acquisitions:
Assets acquired		474,009			31,243
Liabilities assumed		409,426			-
Net assets acquired		64,583			31,243
Common stock issued in acquisition		43,892			-
Preferred stock issued in acquisition		9,992			-

See accompanying notes to consolidated financial statements.

7

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

Note 1 – Accounting Policies

The accounting and financial reporting policies of United Community Banks, Inc. (“United”) and its subsidiaries conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its Annual Report on Form 10-K for the year ended December 31, 2014.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods.

Certain 2014 amounts have been reclassified to conform to the 2015 presentation.

Note 2 – Accounting Standards Updates and Recently Adopted Standards

In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective for fiscal years beginning after December 15, 2015 and interim periods within those years with early adoption permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. United is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability consistent with debt discounts.  The standard will be effective for the United’s fiscal year beginning after December 15, 2015 and subsequent interim periods. The adoption of ASU 2015-03 is not expected to have a material effect on the United’s consolidated financial statements.

In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by ASC 820. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for fiscal years beginning after December 15, 2015, with retrospective application to all periods presented. Early application is permitted. The adoption of this update is not expected to have a material impact on United’s consolidated financial statements.

In June 2015, the FASB issued ASU 2015-10: Technical Corrections and Improvements. The amendments in this Update cover a wide range of topics in the Codification including guidance clarification and reference corrections, simplification and minor improvements. Transition guidance varies based on the amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon issuance. United retrospectively applied the provisions of ASU 2015-10 during the second quarter of 2015, with no material impact on United’s financial position or results of operations. The adoption of ASU 2015-10 did affect certain disclosures related to nonrecurring fair value measurements as presented in Note 14.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was originally effective for interim and annual periods beginning after December 15, 2016. In July 2015, the FASB voted to delay the effective date of this ASU by one year. United is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on United’s consolidated financial statements.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements

Note 3 – Acquisitions

Acquisition of MoneyTree Corporation  

On May 1, 2015, United completed the acquisition of MoneyTree Corporation (“MoneyTree”) and its wholly-owned bank subsidiary, First National Bank (“FNB”). FNB operated ten branches in east Tennessee. In connection with the acquisition, United acquired $461 million of assets and assumed $409 million of liabilities and $9.99 million of preferred stock. Total consideration transferred was $54.6 million of common equity and cash. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $13.0 million, which consisted largely of the intangible value of FNB’s business and reputation within the market it serves. None of the goodwill recognized is expected to be deductible for income tax purposes. United will amortize the related core deposit intangible of $4.22 million using the sum-of-the-years-digits method over 6.67 years, which represents the expected useful life of the asset. The deposit premium of $917,000 will be amortized using the effective yield method over 5 years, which represents the weighted average maturity of the underlying deposits.

The fair value of the 2,358,503 common shares issued as part of the consideration paid for MoneyTree was determined on the basis of the closing market price of United’s common shares on the acquisition date. Acquisition-related costs totaled $3.17 million for the three and six months ending June 30, 2015 and were included in operating expenses in the consolidated income statement.

Upon completion of the acquisition, each share of preferred stock issued by MoneyTree as part of the Small Business Lending Fund (“SBLF”) program of the United States Department of Treasury (9,992 shares in the aggregate with a liquidation preference amount of $1,000 per share) was converted automatically into one substantially identical share of preferred stock of the Company. See Note 12 for further detail.

9

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The purchased assets and assumed liabilities were recorded at their acquisition date fair values, and are summarized in the table below (in thousands).  

	As Recorded by Money Tree		Fair Value Adjustments (1)			As Recorded by United
Assets
Cash and cash equivalents	$	55,293	$	-		$	55,293
Securities		127,123		(52	)		127,071
Loans held for sale		1,342		-			1,342
Loans, net		246,816		(2,464	)		244,352
Premises and equipment, net		9,497		3,759			13,256
Bank owned life insurance		11,194		-			11,194
Core deposit intangible		-		4,220			4,220
Other assets		5,462		(1,199	)		4,263
Total assets acquired	$	456,727	$	4,264		$	460,991
Liabilities
Deposits	$	368,833	$	917		$	369,750
Short-term borrowings		15,000		-			15,000
Federal Home Loan Bank advances		22,000		70			22,070
Other liabilities		864		1,742			2,606
Total liabilities assumed		406,697		2,729			409,426
SBLF preferred stock assumed		9,992		-			9,992
Excess of assets acquired over
liabilities and preferred stock assumed	$	40,038
Aggregate fair value adjustments			$	1,535
Consideration transferred
Cash							10,699
Common stock issued (2,358,503 shares)							43,892
Total fair value of consideration transferred							54,591
Goodwill						$	13,018

⁽¹⁾ Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Purchased loans that show evidence of credit deterioration since origination are accounted for pursuant to Accounting Standards Codification (“ASC”) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The following table presents additional information related to the acquired loan portfolio at acquisition date (in thousands): 

	May 1, 2015
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	15,152
Non-accretable difference		3,677
Cash flows expected to be collected		11,475
Accretable yield		1,029
Fair value	$	10,446
Excluded from ASC 310-30:
Fair value	$	233,906
Gross contractual amounts receivable		258,931
Estimate of contractual cash flows not expected to be collected		1,231

United’s operating results for the six months ended June 30, 2015 include the operating results of the acquired assets and assumed liabilities for the 61 days subsequent to the acquisition date of May 1, 2015. Merger-related charges of $3.17 million are recorded in the consolidated statement of income and include incremental costs related to closing the acquisition, including severance, conversion costs and legal and professional fees.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The following table discloses the impact of the merger with MoneyTree (excluding the impact of merger-related expenses) since the acquisition on May 1, 2015 through June 30, 2015. The table also presents certain pro forma information as if MoneyTree had been acquired on January 1, 2014. These results combine the historical results of MoneyTree in United’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not necessarily indicative of what would have occurred had the acquisition taken place on January 1, 2014.

Merger-related costs of $3.17 million from the MoneyTree acquisition have been excluded from the 2015 pro forma information presented below and included in the 2014 pro forma information presented below. Furthermore, no adjustments have been made to the pro forma information to eliminate the pre-acquisition provision for loan losses for the six months ended June 30, 2015 or 2014 of MoneyTree in the amount of $7,000 and $96,000, respectively. No adjustments have been made to reduce the impact of any OREO write downs recognized by MoneyTree in either the six months ended June 30, 2015 or 2014. In addition, expenses related to systems conversions and other costs of integration are expected to be recorded during the second half of 2015. United expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below. The actual results and pro forma information were as follows (in thousands): 

	Revenue		Net Income
Actual MoneyTree from May 1, 2015 - June 30, 2015	$	2,284	$	384
2015 supplemental consolidated pro forma from January 1, 2015 - June 30, 2015		153,322		38,294
2014 supplemental consolidated pro forma from January 1, 2014 - June 30, 2014		137,809		31,080

Acquisition of Palmetto Bancshares, Inc.

On April 22, 2015, United announced that it had reached a definitive agreement to acquire Palmetto Bancshares, Inc. (“Palmetto”) and its wholly-owned bank subsidiary The Palmetto Bank. The Palmetto Bank is the third largest banking institution headquartered in South Carolina with total assets of $1.16 billion, loans of $824 million and deposits of $977 million as of June 30, 2015. It is a 108-year old community bank that serves Upstate South Carolina through 25 branch locations in nine counties along the Interstate 85 corridor. The Palmetto Bank will merge into and operate under the brand of United Community Bank.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Palmetto shareholders will have the right to receive $19.25 in cash or 0.97 shares of United common stock, or any combination thereof, for each share of Palmetto common stock. The cash and stock elections are subject to proration to ensure that 30% of the outstanding shares of Palmetto common stock will be exchanged for cash and 70% of the outstanding shares of Palmetto common stock will be exchanged for shares of United common stock in the merger. Based on United’s ten-day average closing price of $21.21 per share as of July 31, 2015 the aggregate deal value was approximately $262 million.

The merger is expected to close on September 1, 2015, subject to the approval of the shareholders of Palmetto at a special meeting to be held on August 12, 2015 and other customary conditions. All required regulatory approvals have been received.

Acquisition of Business Carolina, Inc.

On June 26, 2014, United completed the acquisition of substantially all of the assets of Business Carolina, Inc., a specialty Small Business Administration (“SBA”) / United States Department of Agriculture (“USDA”) lender headquartered in Columbia, South Carolina. On the closing date, United paid $31.3 million in cash for loans having a fair value on the purchase date of $24.8 million, accrued interest of $83,000, servicing rights with a fair value on the purchase date of $2.13 million, premises and equipment with a fair value on the purchase date of $2.60 million and goodwill in the amount of $1.51 million representing the premium paid over the fair value of the separately identifiable assets and liabilities acquired. The gross contractual amount of loans receivable was $28.0 million as of the acquisition date. United has not identified any material separately identifiable intangible assets resulting from the acquisition.

The loans and servicing assets that were acquired in this transaction were valued by a third party vendor that specializes in the valuations of these government guaranteed related assets. These assets are very illiquid and United does not have the same level of visibility into the inputs that the valuation vendor has. Therefore, United considers those inputs to be level 3 in the ASC 820 hierarchy. For the loans, the valuations were derived by estimating the expected cash flows using a combination of prepayment speed and default estimates. The cash flows are then discounted using the rates implied by observed transactions in the market place.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 4 – Balance Sheet Offsetting

United enters into reverse repurchase agreements in order to invest short-term funds. In addition, United enters into repurchase agreements and reverse repurchase agreements with the same counterparty in transactions commonly referred to as collateral swaps that are subject to master netting agreements under which the balances are netted in the balance sheet in accordance with ASC 210-20, Offsetting.

The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).  

				Gross Amounts Offset on the Balance Sheet
	Gross Amounts of Recognized Assets						Net Asset Balance			Gross Amounts not Offset in the Balance Sheet					Net Amount
June 30, 2015									Financial Instruments			Collateral Received
Repurchase agreements / reverse repurchase agreements	$	330,000		$	(300,000	)	$	30,000	$	-		$	(31,679	)	$	-
Derivatives		21,728			-			21,728		(1,881	)		(3,978	)		15,869
Total	$	351,728		$	(300,000	)	$	51,728	$	(1,881	)	$	(35,657	)	$	15,869
Weighted average interest rate of reverse repurchase agreements		1.17	%

				Gross Amounts Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities						Net Liability Balance		Gross Amounts not Offset in the Balance Sheet						Net Amount
									Financial Instruments			Collateral Pledged
Repurchase agreements / reverse repurchase agreements	$	300,000		$	(300,000	)	$	-	$	-		$	-		$	-
Derivatives		32,374			-			32,374		(1,881	)		(35,509	)		-
Total	$	332,374		$	(300,000	)	$	32,374	$	(1,881	)	$	(35,509	)	$	-
Weighted average interest rate of repurchase agreements		.31	%

	Gross Amounts of Recognized Assets			Gross Amounts Offset on the Balance Sheet			Net Asset Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
December 31, 2014									Financial Instruments			Collateral Received
Repurchase agreements / reverse repurchase agreements	$	395,000		$	(375,000	)	$	20,000	$	-		$	(20,302	)	$	-
Derivatives		20,599			-			20,599		(869	)		(3,716	)		16,014
Total	$	415,599		$	(375,000	)	$	40,599	$	(869	)	$	(24,018	)	$	16,014
Weighted average interest rate of reverse repurchase agreements		1.16	%

	Gross Amounts of Recognized Liabilities			Gross Amounts Offset on the Balance Sheet			Net Liability Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral Pledged
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		31,997			-			31,997		(869	)		(32,792	)		-
Total	$	406,997		$	(375,000	)	$	31,997	$	(869	)	$	(32,792	)	$	-
Weighted average interest rate of repurchase agreements		.29	%

12

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements 

	Gross Amounts of Recognized Assets			Gross Amounts Offset on the Balance Sheet			Net Asset Balance
									Gross Amounts not Offset in the Balance Sheet
June 30, 2014									Financial Instruments			Collateral Received			Net Amount
Repurchase agreements / reverse repurchase agreements	$	420,000		$	(375,000	)	$	45,000	$	-		$	(48,933	)	$	-
Derivatives		22,024			-			22,024		(1,962	)		(162	)		19,900
Total	$	442,024		$	(375,000	)	$	67,024	$	(1,962	)	$	(49,095	)	$	19,900
Weighted average interest rate of reverse repurchase agreements		1.09	%

	Gross Amounts of Recognized Liabilities			Gross Amounts Offset on the Balance Sheet			Net Liability Balance
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral Pledged			Net Amount
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		36,545			-			36,545		(1,962	)		(35,245	)		-
Total	$	411,545		$	(375,000	)	$	36,545	$	(1,962	)	$	(35,245	)	$	-
Weighted average interest rate of repurchase agreements		.27	%

Note 5 – Securities

The amortized cost basis, gross unrealized gains and losses and fair value of securities held-to-maturity at June 30, 2015, December 31, 2014 and June 30, 2014 are as follows (in thousands).

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
As of June 30, 2015	Cost		Gains		Losses		Value
State and political subdivisions	$	47,116	$	3,103	$	-	$	50,219
Mortgage-backed securities (1)		332,641		6,899		1,693		337,847
Total	$	379,757	$	10,002	$	1,693	$	388,066
As of December 31, 2014
State and political subdivisions	$	48,157	$	3,504	$	-	$	51,661
Mortgage-backed securities (1)		367,110		7,716		1,254		373,572
Total	$	415,267	$	11,220	$	1,254	$	425,233
As of June 30, 2014
State and political subdivisions	$	50,669	$	3,872	$	-	$	54,541
Mortgage-backed securities (1)		398,083		8,257		2,017		404,323
Total	$	448,752	$	12,129	$	2,017	$	458,864

⁽¹⁾ All are residential type mortgage-backed securities or U.S.government agency commercial mortgage backed securities.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

 The following table summarizes held-to-maturity securities in an unrealized loss position as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Mortgage-backed securities	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
Total unrealized loss position	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
As of December 31, 2014
Mortgage-backed securities	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
Total unrealized loss position	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
As of June 30, 2014
Mortgage-backed securities	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017
Total unrealized loss position	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the three or six months ended June 30, 2015 or 2014.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The cost basis, unrealized gains and losses, and fair value of securities available-for-sale at June 30, 2015, December 31, 2014 and June 30, 2014 are presented below (in thousands).

As of June 30, 2015		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	U.S. Treasuries	$	127,962	$	360	$	421	$	127,901
	U.S. Government agencies		110,710		126		525		110,311
	State and political subdivisions		30,489		416		141		30,764
	Mortgage-backed securities (1)		989,636		14,852		6,372		998,116
	Corporate bonds		208,114		1,611		2,701		207,024
	Asset-backed securities		462,702		3,938		308		466,332
	Other		1,871		-		-		1,871
	Total	$	1,931,484	$	21,303	$	10,468	$	1,942,319
As of December 31, 2014
	U.S. Treasuries	$	105,540	$	235	$	66	$	105,709
	U.S. Government agencies		36,474		-		175		36,299
	State and political subdivisions		19,748		504		19		20,233
	Mortgage-backed securities (1)		988,012		16,273		7,465		996,820
	Corporate bonds		165,018		1,686		1,076		165,628
	Asset-backed securities		455,626		2,257		1,955		455,928
	Other		2,117		-		-		2,117
	Total	$	1,772,535	$	20,955	$	10,756	$	1,782,734
As of June 30, 2014
	U.S. Treasuries	$	15,579	$	-	$	71	$	15,508
	State and political subdivisions		21,080		773		38		21,815
	Mortgage-backed securities (1)		1,068,593		17,470		8,623		1,077,440
	Corporate bonds		175,975		1,426		1,430		175,971
	Asset-backed securities		444,910		3,664		251		448,323
	Other		2,211		-		-		2,211
	Total	$	1,728,348	$	23,333	$	10,413	$	1,741,268

⁽¹⁾ All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

15

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table summarizes available-for-sale securities in an unrealized loss position as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasuries	$	49,830	$	421	$	-	$	-	$	49,830	$	421
U.S. Government agencies		85,769		525		-		-		85,769		525
State and political subdivisions		13,441		141		-		-		13,441		141
Mortgage-backed securities		145,477		1,283		198,067		5,089		343,544		6,372
Corporate bonds		119,690		2,701		-		-		119,690		2,701
Asset-backed securities		49,294		261		14,899		47		64,193		308
Total unrealized loss position	$	463,501	$	5,332	$	212,966	$	5,136	$	676,467	$	10,468
As of December 31, 2014
U.S. Treasuries	$	34,180	$	66	$	-	$	-	$	34,180	$	66
U.S. Government agencies		36,299		175		-		-		36,299		175
State and political subdivisions		2,481		19		-		-		2,481		19
Mortgage-backed securities		88,741		446		251,977		7,019		340,718		7,465
Corporate bonds		37,891		371		20,275		705		58,166		1,076
Asset-backed securities		221,359		1,592		40,952		363		262,311		1,955
Total unrealized loss position	$	420,951	$	2,669	$	313,204	$	8,087	$	734,155	$	10,756
As of June 30, 2014
U.S. Treasuries	$	10,508	$	71	$	-	$	-	$	10,508	$	71
State and political subdivisions		-		-		3,634		38		3,634		38
Mortgage-backed securities		100,949		519		277,556		8,104		378,505		8,623
Corporate bonds		19,130		114		46,010		1,316		65,140		1,430
Asset-backed securities		83,620		166		11,486		85		95,106		251
Total unrealized loss position	$	214,207	$	870	$	338,686	$	9,543	$	552,893	$	10,413

At June 30, 2015, there were 142 available-for-sale securities and 23 held-to-maturity securities that were in an unrealized loss position. United does not intend to sell nor believes it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014 were primarily attributable to changes in interest rates and therefore, United does not consider them to be impaired.

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three and six months ended June 30, 2015 and 2014 (in thousands).

	Three Months Ended June 30,					Six Months Ended June 30,
		2015		2014			2015		2014
Proceeds from sales	$	67,350	$	236,911		$	136,817	$	390,227
Gross gains on sales	$	13	$	5,374		$	1,552	$	5,784
Gross losses on sales		-		(939	)		-		(1,132	)
Net gains on sales of securities	$	13	$	4,435		$	1,552	$	4,652
Income tax expense attributable to sales	$	5	$	1,725		$	603	$	1,817

Securities with a carrying value of $1.25 billion, $1.51 billion and $1.37 billion were pledged to secure public deposits and other secured borrowings at June 30, 2015, December 31, 2014 and June 30, 2014, respectively.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements

The amortized cost and fair value of held-to-maturity and available-for-sale securities at June 30, 2015, by contractual maturity, are presented in the following table (in thousands).

			Available-for-Sale				Held-to-Maturity
		Amortized Cost		Fair Value		Amortized Cost		Fair Value
US Treasuries:
	1 to 5 years	$	77,711	$	78,071	$	-	$	-
	5 to 10 years		50,251		49,830		-		-
			127,962		127,901		-
US Government agencies:
	1 to 5 years		32,007		31,801		-		-
	5 to 10 years		78,703		78,510		-		-
			110,710		110,311		-
State and political subdivisions:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		9,709		9,969		17,670		18,756
	5 to 10 years		11,325		11,237		22,140		23,673
	More than 10 years		4,968		4,995		6,300		6,754
			30,489		30,764		47,116		50,219
Corporate bonds:
	1 to 5 years		57,031		57,474		-		-
	5 to 10 years		118,603		118,841		-		-
	More than 10 years		32,480		30,709		-		-
			208,114		207,024		-
Asset-backed securities:
	1 to 5 years		237,660		239,903		-		-
	5 to 10 years		78,367		78,628		-		-
	More than 10 years		146,675		147,801		-		-
			462,702		466,332		-
Other:
	More than 10 years		1,871		1,871		-		-
			1,871		1,871		-
Total securities other than mortgage-backed securities:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		414,118		417,218		17,670		18,756
	5 to 10 years		337,249		337,046		22,140		23,673
	More than 10 years		185,994		185,376		6,300		6,754
Mortgage-backed securities			989,636		998,116		332,641		337,847
		$	1,931,484	$	1,942,319	$	379,757	$	388,066

Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

17

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 6 – Loans and Allowance for Credit Losses

Major classifications of loans as of June 30, 2015, December 31, 2014 and June 30, 2014, are summarized as follows (in thousands).

	June 30, 2015			December 31, 2014			June 30, 2014
Owner occupied commercial real estate	$	1,265,783		$	1,163,480		$	1,163,327
Income producing commercial real estate		688,768			598,537			598,318
Commercial & industrial		792,791			710,256			554,089
Commercial construction		237,820			196,030			159,755
Total commercial		2,985,162			2,668,303			2,475,489
Residential mortgage		935,646			865,789			860,525
Home equity lines of credit		490,753			465,872			451,435
Residential construction		298,920			298,627			301,737
Consumer installment		105,931			104,899			105,160
Indirect auto		357,105			268,629			215,939
Total loans		5,173,517			4,672,119			4,410,285
Less allowance for loan losses		(70,129	)		(71,619	)		(73,248	)
Loans, net	$	5,103,388		$	4,600,500		$	4,337,037

At June 30, 2015, December 31, 2014 and June 30, 2014, loans totaling $2.42 billion, $2.35 billion and $2.09 billion, respectively, were pledged as collateral to secure FHLB advances and other contingent funding sources.

At June 30, 2015, the carrying value and unpaid principal balance of purchased credit impaired loans accounted for under ASC 310-30 was $10.1 million and $13.6 million, respectively. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC Topic 310-30 for the three and six months ended June 30, 2015 (in thousands): 

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
Balance at beginning of period
	$	-		$	-
Additions due to acquisitions		1,029			1,029
Accretion		(83	)		(83	)
Balance at end of period	$	946		$	946

In addition to the accretable yield on loans accounted for under ASC Topic 310-30, the fair value adjustments on purchased loans outside the scope of ASC Topic 310-30 are also accreted to interest income over the life of the loans. At June 30, 2015, the remaining accretable fair value mark on loans not accounted for under ASC Topic 310-30 was $2.60 million.

The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. The allowance for unfunded commitments is included in other liabilities in the consolidated balance sheet. Combined, the allowance for loan losses and allowance for unfunded commitments are referred to as the allowance for credit losses.

18

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2015 and 2014 (in thousands). 

	2015												2014
Three Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated		Provision			Ending Balance
Owner occupied commercial real estate	$	14,952	$	(363	)	$	78	$	1,672		$	16,339	$	20,292	$	(918	)	$	2,753	$	-	$	(4,323	)	$	17,804
Income producing commercial real estate		9,655		(74	)		350		(1,731	)		8,200		10,926		(632	)		197		-		1,270			11,761
Commercial & industrial		3,442		(162	)		789		659			4,728		4,247		(1,012	)		350		-		300			3,885
Commercial construction		5,335		(147	)		51		(344	)		4,895		3,977		(131	)		-		-		221			4,067
Residential mortgage		20,138		(1,109	)		322		(299	)		19,052		15,967		(2,800	)		292		-		3,304			16,763
Home equity lines of credit		4,321		(348	)		26		1,480			5,479		6,120		(624	)		158		-		684			6,338
Residential construction		10,210		(499	)		392		(766	)		9,337		12,181		(1,946	)		275		-		698			11,208
Consumer installment		713		(349	)		187		137			688		717		(455	)		391		-		(54	)		599
Indirect auto		1,241		(130	)		8		292			1,411		796		(89	)		16		-		100			823
Total allowance for loan losses		70,007		(3,181	)		2,203		1,100			70,129		75,223		(8,607	)		4,432		-		2,200			73,248
Allowance for unfunded commitments		2,780		-			-		(200	)		2,580		2,165		-			-		-		-			2,165
Total allowance for credit losses	$	72,787	$	(3,181	)	$	2,203	$	900		$	72,709	$	77,388	$	(8,607	)	$	4,432	$	-	$	2,200		$	75,413

Six Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated			Provision			Ending Balance
Owner occupied commercial real estate	$	16,041	$	(731	)	$	89	$	940		$	16,339	$	17,164	$	(1,284	)	$	2,843	$	1,278		$	(2,197	)	$	17,804
Income producing commercial real estate		10,296		(322	)		357		(2,131	)		8,200		7,174		(837	)		197		688			4,539			11,761
Commercial & industrial		3,255		(631	)		917		1,187			4,728		6,527		(1,975	)		891		318			(1,876	)		3,885
Commercial construction		4,747		(169	)		51		266			4,895		3,669		(132	)		-		388			142			4,067
Residential mortgage		20,311		(1,687	)		484		(56	)		19,052		15,446		(4,381	)		357		1,452			3,889			16,763
Home equity lines of credit		4,574		(421	)		40		1,286			5,479		5,528		(1,627	)		168		391			1,878			6,338
Residential construction		10,603		(1,639	)		471		(98	)		9,337		12,532		(2,251	)		369		1,728			(1,170	)		11,208
Consumer installment		731		(675	)		563		69			688		1,353		(1,131	)		718		-			(341	)		599
Indirect auto		1,061		(258	)		21		587			1,411		1,126		(166	)		27		-			(164	)		823
Unallocated		-		-			-		-			-		6,243		-			-		(6,243	)		-			-
Total allowance for loan losses		71,619		(6,533	)		2,993		2,050			70,129		76,762		(13,784	)		5,570		-			4,700			73,248
Allowance for unfunded commitments		1,930		-			-		650			2,580		2,165		-			-		-			-			2,165
Total allowance for credit losses	$	73,549	$	(6,533	)	$	2,993	$	2,700		$	72,709	$	78,927	$	(13,784	)	$	5,570	$	-		$	4,700		$	75,413

In the first quarter of 2014, United modified its allowance for loan losses methodology to incorporate a loss emergence period. The increase in precision resulting from the use of the loss emergence period led to the full allocation of the portion of the allowance that had previously been unallocated.

The following table represents the recorded investment in loans by portfolio segment and the balance of the allowance for loan losses assigned to each segment based on the method of evaluating the loans for impairment as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

	June 30, 2015								December 31, 2014						June 30, 2014
Allowance for Loan Losses	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased with deteriorated credit quality		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance
Owner occupied commercial real estate	$	1,592	$	14,747	$	-	$	16,339	$	2,737	$	13,304	$	16,041	$	2,483	$	15,321	$	17,804
Income producing commercial real estate		782		7,418		-		8,200		1,917		8,379		10,296		1,404		10,357		11,761
Commercial & industrial		137		4,591		-		4,728		15		3,240		3,255		399		3,486		3,885
Commercial construction		530		4,365		-		4,895		729		4,018		4,747		412		3,655		4,067
Residential mortgage		3,107		15,945		-		19,052		3,227		17,084		20,311		3,117		13,646		16,763
Home equity lines of credit		26		5,453		-		5,479		47		4,527		4,574		115		6,223		6,338
Residential construction		506		8,831		-		9,337		1,192		9,411		10,603		1,054		10,154		11,208
Consumer installment		6		682		-		688		18		713		731		33		566		599
Indirect auto		-		1,411		-		1,411		-		1,061		1,061		-		823		823
Total allowance for loan losses		6,686		63,443		-		70,129		9,882		61,737		71,619		9,017		64,231		73,248
Allowance for unfunded commitments		-		2,580		-		2,580		-		1,930		1,930		-		2,165		2,165
Total allowance for credit losses	$	6,686	$	66,023	$	-	$	72,709	$	9,882	$	63,667	$	73,549	$	9,017	$	66,396	$	75,413
Loans Outstanding
Owner occupied commercial real estate	$	37,547	$	1,225,779	$	2,457	$	1,265,783	$	34,654	$	1,128,826	$	1,163,480	$	31,952	$	1,131,375	$	1,163,327
Income producing commercial real estate		21,926		661,988		4,854		688,768		24,484		574,053		598,537		26,045		572,273		598,318
Commercial & industrial		5,023		787,247		521		792,791		3,977		706,279		710,256		3,641		550,448		554,089
Commercial construction		12,123		223,631		2,066		237,820		12,321		183,709		196,030		11,214		148,541		159,755
Residential mortgage		20,538		914,981		127		935,646		18,775		847,014		865,789		20,455		840,070		860,525
Home equity lines of credit		551		490,132		70		490,753		478		465,394		465,872		540		450,895		451,435
Residential construction		8,631		290,289		-		298,920		11,604		287,023		298,627		13,320		288,417		301,737
Consumer installment		141		105,790		-		105,931		179		104,720		104,899		329		104,831		105,160
Indirect auto		-		357,105		-		357,105		-		268,629		268,629		-		215,939		215,939
Total loans	$	106,480	$	5,056,942	$	10,095	$	5,173,517	$	106,472	$	4,565,647	$	4,672,119	$	107,496	$	4,302,789	$	4,410,285

19

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Excluding loans accounted for under ASC Topic 310-30, management considers all loans that are on nonaccrual with a balance of $500,000 or greater and all troubled debt restructurings (“TDRs”) to be impaired. In addition, management reviews all accruing substandard loans greater than $2 million to determine if the loan is impaired. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the original contractual terms of the loan will not be collected. All TDRs are considered impaired regardless of accrual status. Impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. For TDRs less than $500,000, impairment is estimated based on the average impairment of TDRs greater than $500,000 by loan category. For loan types that do not have TDRs greater than $500,000, the average impairment for all TDR loans is used to quantify the amount of required specific reserve. A specific reserve is established for impaired loans for the amount of calculated impairment. Interest payments received on impaired nonaccrual loans are applied as a reduction of the outstanding principal balance. For impaired loans not on nonaccrual status, interest is accrued according to the terms of the loan agreement. Loans are evaluated for impairment quarterly and specific reserves are established in the allowance for loan losses for any measured impairment.

Each quarter, United’s management prepares an analysis of the allowance for credit losses to determine the appropriate balance that measures and quantifies the amount of probable incurred losses in the loan portfolio and unfunded loan commitments. The allowance is comprised of specific reserves on individually impaired loans, which are determined as described above, and general reserves which are determined based on historical loss experience as adjusted for current trends and economic conditions multiplied by a loss emergence period factor. Management uses eight quarters of historical loss experience to determine the loss factors to be used in the reserve calculation for loans evaluated in the aggregate. Eight quarters has been determined to be an appropriate time period as it is recent enough to be relevant to current conditions and covers a length of time sufficient to minimize distortions caused by nonrecurring and unusual activity that might otherwise influence a shorter time period. In previous years, the loss rates were weighted toward more recent quarters by multiplying each quarter’s annualized historical net charge-off rate by 1 through 8, with 8 representing the most recent quarter and 1 representing the oldest quarter. Management adopted this method of weighting quarterly loss rates to capture the rapidly deteriorating credit conditions in its loss factors during the financial crisis. In the first quarter of 2014, in light of stabilizing credit conditions, management concluded that it was appropriate to apply a more level weighting to capture the full range and impacts of credit losses experienced during the most recent economic and credit cycle. For the four quarters of 2014, management applied a weighting factor of 1.75 to the most recent four quarters and a weighting of 1.00 for the four oldest quarters. Beginning with the first quarter of 2015, management began applying equal weight to all eight quarters to capture the full range of the loss cycle. Management believes the current weightings are more appropriate to measure the probable losses incurred within the loan portfolio.

Also, beginning in the first quarter of 2014, management updated its method for measuring the loss emergence period in the calculation of the allowance for credit losses. The rapidly deteriorating credit conditions during the peak of the credit cycle shortened the length of time between management’s estimation of the incurrence of a loss and its recognition as a charge-off. In most cases, the loss emergence period was within a twelve month period which made the use of annualized loss factors appropriate for measuring the amount of incurred yet unconfirmed credit losses within the loan portfolio. As United has moved out beyond the peak of the financial crisis, management has observed that the loss emergence period has extended. Management calculates the loss emergence period for each pool of loans based on the average length of time between the date a loan first exceeds 30 days past due and the date the loan is charged off.

The updates to the weightings to the eight quarters of loss history and the update to our estimation of the loss emergence period did not have a material effect on the total allowance for loan losses or the provision for loan losses, however, the revised loss emergence period resulted in the full allocation of the previously unallocated portion of the allowance for loan losses.

On junior lien home equity loans, management has limited ability to monitor the delinquency status of the first lien unless the first lien is also held by United. As a result, management applies the weighted average historical loss factor for this category and appropriately adjusts it to reflect the increased risk of loss from these credits.

Management carefully reviews the resulting loss factors for each category of the loan portfolio and evaluates whether qualitative adjustments are necessary to take into consideration recent credit trends such as increases or decreases in past due, nonaccrual, criticized and classified loans, and other macro environmental factors such as changes in unemployment rates, lease vacancy rates and trends in property values and absorption rates.

Management believes that its method of determining the balance of the allowance for credit losses provides a reasonable and reliable basis for measuring and reporting losses that are incurred in the loan portfolio as of the reporting date.

When a loan officer determines that a loan is uncollectible, he or she is responsible for recommending that the loan be charged off. Full or partial charge-offs may also be recommended by the Collections Department, the Special Assets Department and the Foreclosure/OREO Department. Nonaccrual real estate loans that are collateral dependent are generally charged down to 80% of the appraised value of the underlying collateral at the time they are placed on nonaccrual status.

20

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Commercial and consumer asset quality committees consisting of the Chief Credit Officer, a Senior Risk Officer and the Senior Credit Officers meet monthly to review charge-offs that have occurred during the previous month.

Generally, closed-end retail loans (installment and residential mortgage loans) past due 90 cumulative days are written down to their collateral value less estimated selling costs unless the loan is well secured and in process of collection (within the next 90 days). Open-end (revolving) unsecured retail loans which are past due 90 cumulative days from their contractual due date are generally charged-off.

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

		June 30, 2015						December 31, 2014						June 30, 2014
		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Owner occupied commercial real estate	$	14,138	$	12,939	$	-	$	12,025	$	11,325	$	-	$	14,445	$	12,985	$	-
Income producing commercial real estate		9,696		9,553		-		8,311		8,311		-		12,755		11,808		-
Commercial & industrial		2,785		1,977		-		1,679		1,042		-		1,736		1,710		-
Commercial construction		-		-		-		-		-		-		195		195		-
Total commercial		26,619		24,469		-		22,015		20,678		-		29,131		26,698		-
Residential mortgage		2,395		1,930		-		2,569		1,472		-		3,357		2,849		-
Home equity lines of credit		-		-		-		-		-		-		-		-		-
Residential construction		2,347		2,347		-		4,338		3,338		-		6,168		5,491		-
Consumer installment		-		-		-		-		-		-		-		-		-
Indirect auto		-		-		-		-		-		-		-		-		-
Total with no related allowance recorded		31,361		28,746		-		28,922		25,488		-		38,656		35,038		-
With an allowance recorded:
Owner occupied commercial real estate		26,301		24,608		1,592		24,728		23,329		2,737		20,287		18,967		2,483
Income producing commercial real estate		12,460		12,373		782		16,352		16,173		1,917		14,706		14,237		1,404
Commercial & industrial		3,055		3,046		137		2,936		2,935		15		1,931		1,931		399
Commercial construction		12,203		12,123		530		12,401		12,321		729		11,194		11,019		412
Total commercial		54,019		52,150		3,041		56,417		54,758		5,398		48,118		46,154		4,698
Residential mortgage		19,045		18,608		3,107		17,732		17,303		3,227		18,077		17,606		3,117
Home equity lines of credit		563		551		26		478		478		47		540		540		115
Residential construction		7,291		6,284		506		8,962		8,266		1,192		9,255		7,829		1,054
Consumer installment		163		141		6		179		179		18		329		329		33
Indirect auto		-		-		-		-		-		-		-		-		-
Total with an allowance recorded		81,081		77,734		6,686		83,768		80,984		9,882		76,319		72,458		9,017
Total	$	112,442	$	106,480	$	6,686	$	112,690	$	106,472	$	9,882	$	114,975	$	107,496	$	9,017

Excluding loans accounted for under ASC Topic 310-30, there were no loans more than 90 days past due and still accruing interest at June 30, 2015, December 31, 2014 or June 30, 2014. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. United’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal.

Loans accounted for under ASC Topic 310-30 are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered as performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. Loans accounted for under ASC Topic 310-30 were not classified as nonaccrual at June 30, 2015 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. Therefore, interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all acquired loans being accounted for under ASC Topic 310-30.

The gross additional interest revenue that would have been earned if the loans classified as nonaccrual had performed in accordance with the original terms was approximately $165,000 and $96,000 for the three months ended June 30, 2015 and 2014, respectively and $424,000 and $556,000 for the six months ended June 30, 2015 and 2014, respectively. The gross additional interest revenue that would have been earned for the three and six months ended June 30, 2015 and 2014 had performing TDRs performed in accordance with the original terms is immaterial.
 

21

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The average balances of impaired loans and income recognized on impaired loans while they were considered impaired are presented below for the three and six months ended June 30, 2015 and 2014 (in thousands).

	2015						2014
Three Months Ended June 30,	Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received		Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received
Owner occupied commercial real estate	$	37,985	$	469	$	509	$	31,558	$	403	$	391
Income producing commercial real estate		22,055		273		253		26,415		316		317
Commercial & industrial		5,221		45		89		3,683		40		50
Commercial construction		12,164		117		116		11,340		104		107
Total commercial		77,425		904		967		72,996		863		865
Residential mortgage		20,604		200		203		20,598		228		217
Home equity lines of credit		558		5		5		550		5		6
Residential construction		8,748		128		132		13,762		177		175
Consumer installment		161		3		3		335		6		5
Indirect auto		-		-		-		-		-		-
Total	$	107,496	$	1,240	$	1,310	$	108,241	$	1,279	$	1,268
Six Months Ended June 30,
Owner occupied commercial real estate	$	37,487	$	929	$	968	$	30,334	$	761	$	771
Income producing commercial real estate		21,740		540		529		26,138		628		650
Commercial & industrial		4,622		83		125		4,122		92		101
Commercial construction		12,219		233		237		12,027		216		242
Total commercial		76,068		1,785		1,859		72,621		1,697		1,764
Residential mortgage		21,345		425		436		20,960		457		455
Home equity lines of credit		518		10		10		528		10		12
Residential construction		9,662		248		258		13,400		322		325
Consumer installment		157		6		6		392		12		14
Indirect auto		-		-		-		-		-		-
Total	$	107,750	$	2,474	$	2,569	$	107,901	$	2,498	$	2,570

The following table presents the recorded investment in nonaccrual loans by loan class as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

		Nonaccrual Loans
		June 30, 2015		December 31, 2014		June 30, 2014
Owner occupied commercial real estate	$	4,878	$	4,133	$	2,975
Income producing commercial real estate		883		717		1,032
Commercial & industrial		1,389		1,571		1,102
Commercial construction		59		83		95
Total commercial		7,209		6,504		5,204
Residential mortgage		8,599		8,196		10,201
Home equity lines of credit		940		695		510
Residential construction		1,358		2,006		4,248
Consumer installment		131		134		171
Indirect auto		568		346		390
Total	$	18,805	$	17,881	$	20,724

22

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table presents the aging of the recorded investment in past due loans as of June 30, 2015, December 31, 2014 and June 30, 2014 by class of loans (in thousands).

	Loans Past Due								Loans Not
As of June 30, 2015	30 - 59 Days		60 - 89 Days		>90 Days		Total		Past Due		Total
Owner occupied commercial real estate	$	2,789	$	337	$	1,646	$	4,772	$	1,261,011	$	1,265,783
Income producing commercial real estate		726		313		440		1,479		687,289		688,768
Commercial & industrial		810		87		1,278		2,175		790,616		792,791
Commercial construction		626		-		44		670		237,150		237,820
Total commercial		4,951		737		3,408		9,096		2,976,066		2,985,162
Residential mortgage		4,888		1,568		1,615		8,071		927,575		935,646
Home equity lines of credit		1,268		528		279		2,075		488,678		490,753
Residential construction		2,110		269		429		2,808		296,112		298,920
Consumer installment		444		188		23		655		105,276		105,931
Indirect auto		276		132		402		810		356,295		357,105
Total loans	$	13,937	$	3,422	$	6,156	$	23,515	$	5,150,002	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,444	$	1,929	$	1,141	$	4,514	$	1,158,966	$	1,163,480
Income producing commercial real estate		2,322		1,172		-		3,494		595,043		598,537
Commercial & industrial		302		40		1,425		1,767		708,489		710,256
Commercial construction		-		-		66		66		195,964		196,030
Total commercial		4,068		3,141		2,632		9,841		2,658,462		2,668,303
Residential mortgage		5,234		2,931		3,278		11,443		854,346		865,789
Home equity lines of credit		961		303		167		1,431		464,441		465,872
Residential construction		1,172		268		1,395		2,835		295,792		298,627
Consumer installment		607		136		33		776		104,123		104,899
Indirect auto		200		146		141		487		268,142		268,629
Total loans	$	12,242	$	6,925	$	7,646	$	26,813	$	4,645,306	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	448	$	1,239	$	762	$	2,449	$	1,160,878	$	1,163,327
Income producing commercial real estate		2,030		-		242		2,272		596,046		598,318
Commercial & industrial		930		101		405		1,436		552,653		554,089
Commercial construction		116		-		50		166		159,589		159,755
Total commercial		3,524		1,340		1,459		6,323		2,469,166		2,475,489
Residential mortgage		7,372		1,404		3,150		11,926		848,599		860,525
Home equity lines of credit		1,609		193		79		1,881		449,554		451,435
Residential construction		1,246		584		1,331		3,161		298,576		301,737
Consumer installment		677		80		1		758		104,402		105,160
Indirect auto		258		99		193		550		215,389		215,939
Total loans	$	14,686	$	3,700	$	6,213	$	24,599	$	4,385,686	$	4,410,285

As of June 30, 2015, December 31, 2014, and June 30, 2014, $6.24 million, $9.72 million and $8.98 million, respectively, of specific reserves were allocated to customers whose loan terms have been modified in TDRs. United committed to lend additional amounts totaling up to $75,000, $51,000 and $44,000 as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively, to customers with outstanding loans that are classified as TDRs.

The modification of the terms of the TDRs included one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the amortization period that would not otherwise be considered in the current market for new debt with similar risk characteristics; a restructuring of the borrower’s debt into an “A/B note structure” where the A note would fall within the borrower’s ability to pay and the remainder would be included in the B note, or a mandated bankruptcy restructuring.

23

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table presents information on TDRs including the number of loan contracts restructured and the pre- and post-modification recorded investment as of June 30, 2015, December 31, 2014 and June 30, 2014 (dollars in thousands).

	June 30, 2015						December 31, 2014						June 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Owner occupied commercial real estate		57	$	34,845	$	33,401		54	$	27,695	$	26,296		52	$	28,233	$	26,670
Income producing commercial real estate		29		15,756		15,681		31		18,094		17,915		33		19,427		18,957
Commercial & industrial		32		3,583		3,583		32		2,848		2,847		31		2,893		2,893
Commercial construction		14		11,174		11,094		14		11,360		11,280		15		11,390		11,213
Total commercial		132		65,358		63,759		131		59,997		58,338		131		61,943		59,733
Residential mortgage		165		19,742		19,141		154		18,630		17,836		154		21,008		20,030
Home equity lines of credit		3		560		551		2		478		478		4		540		540
Residential construction		45		6,925		6,284		48		8,962		8,265		54		12,463		10,361
Consumer installment		16		159		141		17		179		179		23		329		329
Indirect auto		-		-		-		-		-		-		-		-		-
Total loans		361	$	92,744	$	89,876		352	$	88,246	$	85,096		366	$	96,283	$	90,993

Loans modified under the terms of a TDR during the three and six months ended June 30, 2015 and 2014 are presented in the table below. In addition, the following table presents loans modified under the terms of a TDR that became 90 days or more delinquent during the three and six months ended June 30, 2015 and 2014, that were initially restructured within one year prior to becoming delinquent (dollars in thousands). 

	New Troubled Debt Restructurings for the Three Months Ended June 30,										New Troubled Debt Restructurings for the Six Months Ended June 30,
							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2015										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2015
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2015	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		6	$	8,040	$	7,996		-	$	-		8	$	12,537	$	12,493		-	$	-
Income producing commercial real estate		1		55		54		-		-		3		310		310		-		-
Commercial & industrial		4		992		992		-		-		6		1,180		1,180		-		-
Commercial construction		1		233		233		-		-		1		233		233		-		-
Total commercial		12		9,320		9,275		-		-		18		14,260		14,216		-		-
Residential mortgage		8		523		523		-		-		23		2,121		2,121		-		-
Home equity lines of credit		1		83		74		-		-		1		83		74		-		-
Residential construction		2		163		139		-		-		2		163		139		-		-
Consumer installment		1		25		25		-		-		2		28		28		1		30
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		24	$	10,114	$	10,036		-	$	-		46	$	16,655	$	16,578		1	$	30

							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2014										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2014
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2014	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		5	$	2,787	$	2,787		-	$	-		7	$	3,392	$	3,392		1	$	104
Income producing commercial real estate		3		1,459		1,459		-		-		5		1,992		1,992		-		-
Commercial & industrial		3		106		106		-		-		4		330		330		2		54
Commercial construction		1		240		240		-		-		2		471		471		-		-
Total commercial		12		4,592		4,592		-		-		18		6,185		6,185		3		158
Residential mortgage		9		1,014		973		2		280		23		2,146		2,105		6		732
Home equity lines of credit		1		36		36		-		-		1		36		36		-		-
Residential construction		3		1,124		1,124		-		-		3		1,124		1,124		-		-
Consumer installment		3		84		84		-		-		5		226		226		-		-
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		28	$	6,850	$	6,809		2	$	280		50	$	9,717	$	9,676		9	$	890

Collateral dependent TDRs that subsequently default and are placed on nonaccrual are charged down to the fair value of the collateral consistent with United’s policy for nonaccrual loans. Impairment on TDRs that are not collateral dependent continues to be measured on discounted cash flows regardless of whether the loan has subsequently defaulted.

24

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements

As of June 30, 2015, December 31, 2014 and June 30, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands). 

					Substandard				Doubtful /
As of June 30, 2015	Pass		Watch		Performing		Nonaccrual		Loss		Total
Owner occupied commercial real estate	$	1,195,986	$	25,301	$	39,618	$	4,878	$	-	$	1,265,783
Income producing commercial real estate		664,137		4,973		18,775		883		-		688,768
Commercial & industrial		781,820		3,188		6,394		1,389		-		792,791
Commercial construction		232,080		2,426		3,255		59		-		237,820
Total commercial		2,874,023		35,888		68,042		7,209		-		2,985,162
Residential mortgage		886,863		9,605		30,579		8,599		-		935,646
Home equity lines of credit		484,222		-		5,591		940		-		490,753
Residential construction		284,395		3,481		9,686		1,358		-		298,920
Consumer installment		104,958		-		842		131		-		105,931
Indirect auto		355,576		-		961		568		-		357,105
Total loans	$	4,990,037	$	48,974	$	115,701	$	18,805	$	-	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,094,057	$	18,889	$	46,401	$	4,133	$	-	$	1,163,480
Income producing commercial real estate		560,559		16,701		20,560		717		-		598,537
Commercial & industrial		696,805		4,017		7,863		1,571		-		710,256
Commercial construction		190,070		2,311		3,566		83		-		196,030
Total commercial		2,541,491		41,918		78,390		6,504		-		2,668,303
Residential mortgage		814,168		11,594		31,831		8,196		-		865,789
Home equity lines of credit		459,881		-		5,296		695		-		465,872
Residential construction		280,166		5,535		10,920		2,006		-		298,627
Consumer installment		103,383		-		1,382		134		-		104,899
Indirect auto		267,709		-		574		346		-		268,629
Total loans	$	4,466,798	$	59,047	$	128,393	$	17,881	$	-	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	1,079,629	$	32,501	$	48,222	$	2,975	$	-	$	1,163,327
Income producing commercial real estate		556,223		16,430		24,633		1,032		-		598,318
Commercial & industrial		542,836		4,504		5,647		1,102		-		554,089
Commercial construction		152,894		2,360		4,406		95		-		159,755
Total commercial		2,331,582		55,795		82,908		5,204		-		2,475,489
Residential mortgage		797,725		10,743		41,856		10,201		-		860,525
Home equity lines of credit		443,196		167		7,562		510		-		451,435
Residential construction		276,539		8,078		12,872		4,248		-		301,737
Consumer installment		103,203		10		1,776		171		-		105,160
Indirect auto		214,987		-		562		390		-		215,939
Total loans	$	4,167,232	$	74,793	$	147,536	$	20,724	$	-	$	4,410,285

Risk Ratings

United categorizes commercial loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current industry and economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continual basis. United uses the following definitions for its risk ratings:

Watch. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

25

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment.

Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged off.

Consumer Purpose Loans. United applies a pass / fail grading system to all consumer purpose loans. Under the pass / fail grading system, consumer purpose loans meeting the criteria of substandard are classified as “fail” and all other loans are classified as “pass”. For reporting purposes, consumer purpose loans classified as “fail” are reported in the performing substandard or nonaccrual columns and all other consumer purpose loans are reported in the “pass” column. Loan balances reported in the “watch” column for residential mortgage are generally commercial purpose loans secured by the borrower’s residence.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

Note 7 – Servicing Rights for Government Guaranteed Loans

United accounts for servicing rights for government guaranteed loans serviced for others at fair value and includes them in other assets. Changes in the balances of servicing assets and servicing liabilities subsequently measured using the fair value measurement method for the three and six months ended June 30, 2015 and 2014 are recorded as follows (in thousands).

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015			2014		2015			2014
Fair value at beginning of period	$	2,717		$	-	$	2,551		$	-
Additions:
Acquired servicing rights		-			2,133		-			2,133
Originated servicing rights capitalized upon sale on loans		442			129		632			129
Changes in fair value:
Due to change in valuation inputs or assumptions used in valuation model		(41	)		-		(65	)		-
Fair value at end of period	$	3,118		$	2,262	$	3,118		$	2,262

A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s government guaranteed servicing assets as of June 30, 2015 and December 31, 2014, and the sensitivity of the fair values to immediate adverse changes in those assumptions are shown in the table below (in thousands).

	June 30,			December 31,
	2015			2014
Fair value of retained servicing assets	$	3,118		$	2,551
Prepayment rate assumption		6.98	%		6.70	%
10% adverse change	$	(80	)	$	(62	)
20% adverse change	$	(156	)	$	(122	)
Discount rate		11.0	%		12.0	%
100 bps adverse change	$	(109	)	$	(85	)
200bps adverse change	$	(211	)	$	(164	)
Weighted-average life (months)		6.9			6.5
Weighted-average gross margin		2.02	%		2.00	%

26

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 8 – Reclassifications Out of Accumulated Other Comprehensive Income

The following table presents the details regarding amounts reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2015 and 2014 (in thousands). 

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement
Comprehensive Income Components	2015			2014			2015			2014			Where Net Income is Presented
Realized gains on sales of available-for-sale securities:
	$	13		$	4,435		$	1,552		$	4,652		Securities gains, net
		(5	)		(1,725	)		(603	)		(1,817	)	Tax expense
	$	8		$	2,710		$	949		$	2,835		Net of tax
Amortization of (losses) gains included in net income on available-for-sale securities transferred to held to maturity:
	$	(289	)	$	(409	)	$	(773	)	$	(739	)	Investment securities interest revenue
		105			154			287			277		Tax benefit (expense)
	$	(184	)	$	(255	)	$	(486	)	$	(462	)	Net of tax
Gains included in net income on derivative financial instruments accounted for as cash flow hedges:
Effective portion of interest rate contracts	$	-		$	(350	)	$	-		$	(447	)	Time deposit interest expense
Amortization of losses on de-designated positions		(30	)		-			(78	)		-		Deposits in banks and short-term investmens in interest revenue
Amortization of losses on de-designated positions		(146	)		(24	)		(265	)		(24	)	Money market deposit interest expense
Amortization of losses on de-designated positions		(279	)		-			(537	)		-		Federal Home Loan Bank advances interest expense
Amortization of losses on de-designated positions		-			(199	)		-			(199	)	Time deposit interest expense
		(455	)		(573	)		(880	)		(670	)	Total before tax
		177			223			342			261		Tax or benefit (expense)
	$	(278	)	$	(350	)	$	(538	)	$	(409	)	Net of tax
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan
Prior service cost	$	(91	)	$	(92	)	$	(182	)	$	(183	)	Salaries and employee benefits expense
Actuarial losses		(68	)		-			(136	)		-		Salaries and employee benefits expense
		(159	)		(92	)		(318	)		(183	)	Total before tax
		62			36			124			71		Tax benefit
	$	(97	)	$	(56	)	$	(194	)	$	(112	)	Net of tax
Total reclassifications for the period	$	(551	)	$	2,049		$	(269	)	$	1,852		Net of tax

Amounts shown above in parentheses reduce earnings

Note 9 – Earnings Per Share

United is required to report on the face of the consolidated statement of income, earnings per common share with and without the dilutive effects of potential common stock issuances from instruments such as options, convertible securities and warrants. Basic earnings per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per common share.

During the three and six months ended June 30, 2015 and 2014, United accrued dividends on preferred stock as shown in the following table (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Series H - 1% until March 15, 2016, subject to change based on Qualified Small Business Lending, 9% thereafter	$	17	$	-	$	17	$	-
Series B - 5% fixed until December 6, 2013, 9% thereafter		-		-		-		159
Series D - LIBOR plus 9.6875%, resets quarterly		-		-		-		280
Total preferred stock dividends	$	17	$	-	$	17	$	439

 All preferred stock dividends are payable quarterly.

The preferred stock dividends were subtracted from net income in order to arrive at net income available to common shareholders.

27

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 (in thousands, except per share data). 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income available to common shareholders	$	17,796	$	16,357	$	35,466	$	31,318
Weighted average shares outstanding:
Basic		62,549		60,712		61,730		60,386
Effect of dilutive securities
Stock options		4		2		4		2
Diluted		62,553		60,714		61,734		60,388
Net income per common share:
Basic	$	.28	$	.27	$	.57	$	.52
Diluted	$	.28	$	.27	$	.57	$	.52

At June 30, 2015, United had the following potentially dilutive stock options and warrants outstanding: a warrant to purchase 219,909 shares of common stock at $61.40 per share; 256,102 shares of common stock issuable upon exercise of stock options granted to employees with a weighted average exercise price of $90.25; and 765,061 shares of common stock issuable upon completion of vesting of restricted stock unit awards.

At June 30, 2014, United had the following potentially dilutive stock options and warrants outstanding: a warrant to purchase 219,909 common shares at $61.40 per share originally issued to the U.S. Treasury; 316,343 common shares issuable upon exercise of stock options granted to employees with a weighted average exercise price of $96.22; 973,467 shares issuable upon completion of vesting of restricted stock awards; and warrants to purchase common stock equivalent junior preferred stock that would be convertible into 1,411,765 common shares exercisable at $21.25 per share granted to Fletcher International Ltd. (“Fletcher”) in connection with a 2010 asset purchase and sale agreement. United repurchased the warrant from Fletcher in the fourth quarter of 2014.

Note 10 – Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

United is exposed to certain risks arising from both its business operations and economic conditions. United principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. United manages interest rate risk primarily by managing the amount, sources, and duration of its investment securities portfolio and wholesale funding and through the use of derivative financial instruments. Specifically, United enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. United’s derivative financial instruments are used to manage differences in the amount, timing, and duration of United’s known or expected cash receipts and its known or expected cash payments principally related to United’s loans, investment securities, wholesale borrowings and deposits.

In conjunction with the FASB’s fair value measurement guidance, United made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a gross basis.

28

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The table below presents the fair value of United’s derivative financial instruments as well as their classification on the consolidated balance sheet as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

Derivatives designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2014
Cash flow hedge of money market deposits	Derivative assets	$	-	$	-	$	1,109
Fair value hedge of corporate bonds	Derivative assets		970		-		-
		$	970	$	-	$	1,109
Cash flow hedge of money market deposits	Derivative liabilities	$	-	$	350	$	523
Fair value hedge of brokered CD’s	Derivative liabilities		4,855		5,817		9,857
		$	4,855	$	6,167	$	10,380

Derivatives not designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location		June 30, 2015		December 31, 2014		June 30, 2014
Customer swap positions	Derivative assets	$	3,456	$	3,433	$	2,572
Dealer offsets to customer swap positions	Derivative assets		-		128		333
Bifurcated embedded derivatives	Derivative assets		11,531		12,262		12,369
Offsetting positions for de-designated cash flow hedges	Derivative assets		5,771		4,776		5,641
		$	20,758	$	20,599	$	20,915
Customer swap positions	Derivative liabilities	$	3,485	$	129	$	333
Dealer offsets to customer swap positions	Derivative liabilities		-		3,456		2,592
Dealer offsets to bifurcated embedded derivatives	Derivative liabilities		18,261		17,467		17,599
De-designated cash flow hedges	Derivative liabilities		5,773		4,778		5,641
		$	27,519	$	25,830	$	26,165

Derivative contracts that are not accounted for as hedging instruments under ASC 815, Derivatives and Hedging, and are described as “customer derivatives,” are between United and certain commercial loan customers with offsetting positions to dealers under a back-to-back swap program. United also has three interest rate swap contracts that are not designated as hedging instruments but are economic hedges of market linked brokered certificates of deposit. The market linked brokered certificates of deposit contain embedded derivatives that are bifurcated from the host instruments and marked to market through earnings. The marks on the market linked swaps and the bifurcated embedded derivatives tend to move in opposite directions with changes in 90-day LIBOR and therefore provide an effective economic hedge.

Cash Flow Hedges of Interest Rate Risk

United’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, United uses interest rate swaps as part of its interest rate risk management strategy. United’s interest rate swaps designated as cash flow hedges involved the payment of fixed-rate amounts to a counterparty in exchange for United receiving variable-rate payments over the life of the agreements without exchange of the underlying notional amount. United’s cash flow hedges were for the purpose of converting variable rate deposits and wholesale borrowings to the economic equivalent of a fixed rate to protect United in a rising rate environment. At June 30, 2015 United did not have any active cash flow hedges. At December 31, 2014, United had one swap contract outstanding with a total notional amount of $175 million that was designated as a cash flow hedge of indexed money market accounts. At June 30, 2014, United had two swap contracts outstanding with a total notional amount of $275 million that were designated as cash flow hedges of indexed money market accounts. During the second and fourth quarters of 2014, United de-designated swaps with a notional of $500 million and put on offsetting positions which had a similar effect to terminating the positions. In addition, in the first quarter of 2015, United terminated its one remaining cash flow hedge with a notional of $175 million. Changes in United’s balance sheet composition and interest rate risk position made the hedges no longer necessary as protection against rising interest rates. The loss remaining in other comprehensive income on the de-designated swaps is being amortized into earnings over the original term of the swaps as the forecasted transactions that the swaps were originally designated to hedge are still expected to occur.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense when the swaps become effective, as interest payments are made on United’s LIBOR based, variable-rate wholesale borrowings and indexed deposit accounts. United did not recognize any hedge ineffectiveness on active cash flow hedges during the three months ended June 30, 2015 but did recognize $7,000 in hedge ineffectiveness gains in interest expense during the six months ended June 30, 2015. United recognized $50,000 and $85,000, respectively, in hedge ineffectiveness losses in interest expense on active cash flow hedges during the three and six months ended June 30, 2014. United expects that $1.83 million will be reclassified as an increase to deposit interest expense over the next twelve months related to these cash flow hedges.

Fair Value Hedges of Interest Rate Risk

United is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in interest rates. United uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in interest rates. Interest rate swaps designated as fair value hedges of brokered deposits involve the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate swaps designated as fair value hedges of fixed rate investments involve the receipt of variable-rate payments from a counterparty in exchange for United making fixed rate payments over the life of the instrument without the exchange of the underlying notional amount. At June 30, 2015, United had 15 interest rate swaps with an aggregate notional amount of $184 million that were designated as fair value hedges of interest rate risk and were pay-variable / receive-fixed swaps hedging the changes in the fair value of fixed rate brokered time deposits resulting from changes in interest rates. Also at June 30, 2015, United had 1 interest rate swap with a notional of $30 million that was designated as a pay-fixed / receive variable fair value hedge of changes in the fair value of a fixed rate corporate bond. At June 30, 2014, United had 16 interest rate swaps with an aggregate notional amount of $199 million that were designated as fair value hedges of interest rate risk. These contracts were pay-variable / receive-fixed swaps hedging changes in the fair value of fixed rate brokered time deposits resulting from changes in interest rates.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. United includes the gain or loss on the hedged items in the same income statement line item as the offsetting loss or gain on the related derivatives. During the three and six months ended June 30, 2015, United recognized net gains of $207,000 and $170,000, respectively, and during the three and six months ended June 30, 2014, United recognized net losses of $236,000 and $625,000, respectively, related to ineffectiveness in the fair value hedging relationships. United also recognized net reductions of interest expense of $1.13 million and $2.26 million, respectively, for the three and six months ended June 30, 2015 and net reductions of interest expense of $1.22 million and $2.43 million, respectively, for the three and six months ended June 30, 2014 related to United’s fair value hedges of brokered time deposits, which includes net settlements on the derivatives. United recognized reductions of interest revenue on securities during the three and six months ended June 30, 2015 of $146,000 and $220,000, respectively, and reductions of interest revenue on securities during the three and six months ended June 30, 2014 of $425,000 and $955,000 related to United’s fair value hedges of corporate bonds.

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The tables below present the effect of United’s derivative financial instruments on the consolidated statement of operations for the three and six months ended June 30, 2015 and 2014.  

Derivatives in Fair Value Hedging Relationships (in thousands). 

	Location of Gain (Loss) Recognized in Income on	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
	Derivative		2015			2014			2015			2014
Three Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(3,145	)	$	4,262		$	3,287		$	(4,382	)
Fair value hedges of corporate bonds	Interest revenue		1,315			(783	)		(1,250	)		667
		$	(1,830	)	$	3,479		$	2,037		$	(3,715	)
Six Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(775	)	$	10,115		$	882		$	(10,416	)
Fair value hedges of corporate bonds	Interest revenue		970			(2,487	)		(907	)		2,163
		$	195		$	7,628		$	(25	)	$	(8,253	)

In certain cases, the estate of deceased brokered certificate of deposit holders may put the certificate of deposit back to the issuing bank at par upon the death of the holder. When these estate puts occur, a gain or loss is recognized for the difference between the fair value and the par amount of the deposits put back. The change in the fair value of brokered time deposits that are being hedged in fair value hedging relationships reported in the table above includes gains and losses from estate puts and such gains and losses are included in the amount of reported ineffectiveness gains or losses.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

Derivatives in Cash Flow Hedging Relationships (in thousands). 

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
	2015			2014			Location	2015			2014			Location	2015			2014
Three Months Ended June 30,
Interest rate swaps	$	-		$	(3,547	)	Interest expense	$	(455	)	$	(573	)	Interest expense	$	-		$	(50	)
Six Months Ended June 30,
Interest rate swaps	$	(471	)	$	(6,379	)	Interest expense	$	(880	)	$	(670	)	Interest expense	$	(7	)	$	(85	)

Credit-Risk-Related Contingent Features

United manages its credit exposure on derivatives transactions by entering into a bilateral credit support agreement with each counterparty. The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements, including the minimum thresholds, vary by counterparty. As of June 30, 2015, collateral totaling $35.5 million was pledged toward derivatives in a liability position.

United’s agreements with each of its derivative counterparties contain a provision where if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivatives counterparties also include provisions that if not met, could result in United being declared in default. United has agreements with certain of its derivative counterparties that contain a provision where if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would be required to settle its obligations under the agreements.

Note 11 – Stock-Based Compensation

United has an equity compensation plan that allows for grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock unit awards (also referred to as “nonvested stock” awards), stock awards, performance share awards or stock appreciation rights. Options granted under the plan can have an exercise price no less than the fair market value of the underlying stock at the date of grant. The general terms of the plan include a vesting period (usually four years) with an exercisable period not to exceed ten years. Certain options, restricted stock and restricted stock unit awards provide for accelerated vesting if there is a change in control (as defined in the plan). As of June 30, 2015, 404,000 additional awards could be granted under the plan. Through June 30, 2015, incentive stock options, nonqualified stock options, restricted stock and restricted stock unit awards, base salary stock grants and performance share awards have been granted under the plan.

The following table shows stock option activity for the first six months of 2015.  

Options	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinisic Value ($000)
Outstanding at December 31, 2014		313,555		$	93.40
Expired		(45,242	)		108.61
Forfeited		(12,211	)		103.12
Outstanding at June 30, 2015		256,102			90.25		2.9	$	168
Exercisable at June 30, 2015		239,852			95.32		2.5		81

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

The fair value of each option is estimated on the date of grant using the Black-Scholes model. No stock options were granted during the six months ended June 30, 2015 and 2014.

Most of United’s outstanding stock options were granted prior to the economic downturn during which time United’s stock price decreased sharply. The lower stock price has rendered most of United’s outstanding options severely out of the money and potentially worthless to the grantee. Therefore, historical exercise patterns do not provide a reasonable basis for determining the expected life of new option grants. United therefore uses the formula provided by the SEC in ASC Topic 718-10-S99 to determine the expected life of options.

United recognized $19,000 and $2,000, respectively, in compensation expense related to stock options during the six months ended June 30, 2015 and 2014. The amount of compensation expense was determined based on the fair value of the options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period. The forfeiture rate for new options issued is estimated to be approximately 3% per year. No options were exercised during the first six months of 2015 or 2014.

The table below presents restricted stock units activity for the first six months of 2015. 

Restricted Stock Unit Awards	Shares			Weighted- Average Grant- Date Fair Value
Outstanding at December 31, 2014	829,201		$	14.76
Granted	129,507			18.23
Vested	(140,102	)		14.36
Cancelled	(53,545	)		15.26
Outstanding at June 30, 2015	765,061			15.39
Vested at June 30, 2015	1,170			10.69

Compensation expense for restricted stock units is based on the fair value of restricted stock unit awards at the time of grant, which is equal to the value of United’s common stock on the date of grant. The value of restricted stock unit awards that are expected to vest is amortized into expense over the vesting period. For the six months ended June 30, 2015 and 2014, compensation expense of $2.11 million and $2.18 million, respectively, was recognized related to restricted stock unit awards. In addition, for the six months ended June 30, 2015 and 2014, $47,000 and $50,000, respectively, was recognized in other operating expense for restricted stock unit awards granted to members of United’s board of directors. The total intrinsic value of outstanding restricted stock unit awards was $16.0 million at June 30, 2015.

As of June 30, 2015, there was $8.95 million of unrecognized compensation cost related to non-vested stock options and restricted stock unit awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.51 years. The aggregate grant date fair value of options and restricted stock unit awards that vested during the six months ended June 30, 2015, was $1.95 million.

Note 12 – Common and Preferred Stock Issued / Common Stock Issuable

United sponsors a Dividend Reinvestment and Share Purchase Plan (“DRIP”) that allows participants who already own United’s common stock to purchase additional shares directly from United. The DRIP also allows participants to automatically reinvest their quarterly dividends in additional shares of common stock without a commission. No shares were issued through the DRIP in the first six months of 2014 as the DRIP was suspended during that time. The DRIP was re-activated following United’s reinstatement of its quarterly dividend in the second quarter of 2014. In the six months ended June 30, 2015, 997 shares were issued through the DRIP.

United’s 401(k) Plan has routinely purchased shares of United’s common stock directly from United. Effective January 1, 2015, the 401(k) Plan discontinued offering shares of United’s common stock as an investment option. During the six months ended June 30, 2014, United’s 401(k) Plan purchased 14,171 shares directly from United at the average of the high and low stock prices on the transaction dates which increased capital by $245,000.

In addition, United has an Employee Stock Purchase Program (“ESPP”) that allows eligible employees to purchase shares of common stock at a 5% discount, with no commission charges. Effective January 1, 2015, the discount was increased to 10% on purchases made through the ESPP. During the first six months of 2015 and 2014, United issued 6,664 shares and 5,128 shares, respectively, through the ESPP.

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UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

United offers its common stock as an investment option in its deferred compensation plan. United also allows for the deferral of restricted stock unit awards. The common stock component of the deferred compensation plan is accounted for as an equity instrument and is reflected in the consolidated financial statements as common stock issuable. The deferred compensation plan does not allow for diversification once an election is made to invest in United’s common stock and settlement must be accomplished in shares at the time the deferral period is completed. At June 30, 2015 and 2014, 413,014 and 314,039 shares of common stock, respectively, were issuable under the deferred compensation plan.

As discussed in Note 3, on May 1, 2015, the Company completed its previously announced acquisition of Moneytree. Upon completion of the acquisition, each share of preferred stock issued by MoneyTree as part of the SBLF program of the United States Department of Treasury (9,992 shares in the aggregate with a liquidation preference amount of $1,000 per share) was converted automatically into one substantially identical share of preferred stock of the Company with a liquidation preference amount of $1,000 per share, designated as the Company’s Non-Cumulative Perpetual Preferred Stock, Series H. The SBLF Preferred Shares have terms and conditions identical to those shares of preferred stock issued by MoneyTree to the Treasury.  United will pay noncumulative dividends quarterly.  The current dividend rate is 1.00% per annum through March 15, 2016.  Following this date, the dividend rate will increase to 9% per annum thereafter.    

The SBLF Preferred Shares may be redeemed at any time at the option of United, subject to the approval of the appropriate federal banking agency.  All redemptions must be made at a per share redemption price equal to 100% of the liquidation preference, plus accrued and unpaid dividends as of the date of the redemption (“Redemption Date”) for the quarter that includes the Redemption Date, and a pro rata portion of any lending incentive fee.  All redemptions must be in amounts equal to at least 25% of the number of originally issued shares, or 100% of the then outstanding shares, if less than 25% of the number of originally issued shares.

In the first quarter of 2014, United redeemed all of its outstanding Series B and D preferred stock. The preferred stock was redeemed at par and did not result in any gain or loss. The redemptions were funded from a combination of dividends from United Community Bank and cash on hand.

Note 13 – Income Taxes

The income tax provision for the three and six months ended June 30, 2015 was $11.1 million and $21.5 million, respectively, which represents effective tax rates of 38.4% and 37.7%, respectively, for each period. The income tax provision for the three and six months ended June 30, 2014 was $9.63 million and $18.7 million, respectively, which represents effective tax rates of 37.0% for each period. At June 30, 2015, December 31, 2014 and June 30, 2014, United maintained a valuation allowance on its net deferred tax asset of $4.43 million, $4.12 million and $4.10 million, respectively. Management assesses the valuation allowance recorded against its net deferred tax asset at each reporting period. The determination of whether a valuation allowance for its net deferred tax asset is appropriate is subject to considerable judgment and requires an evaluation of all the positive and negative evidence.

United evaluated the need for a valuation allowance at June 30, 2015. Based on the assessment of all the positive and negative evidence, management concluded that it is more likely than not that nearly all of its net deferred tax asset will be realized based upon future taxable income. The remaining valuation allowance of $4.43 million is related to specific state income tax credits that have short carryforward periods and are expected to expire unused.

The valuation allowance could fluctuate in future periods based on the assessment of the positive and negative evidence. Management’s conclusion at June 30, 2015 that it was more likely than not that United’s net deferred tax asset of $196 million will be realized is based upon management’s estimate of future taxable income. Management’s estimate of future taxable income is based on internal forecasts that consider historical performance, various internal estimates and assumptions, as well as certain external data all of which management believes to be reasonable although inherently subject to significant judgment. If actual results differ significantly from the current estimates of future taxable income, even if caused by adverse macro-economic conditions, the valuation allowance may need to be increased for some or all of its net deferred tax asset. Such an increase to the net deferred tax asset valuation allowance could have a material adverse effect on United’s financial condition and results of operations.

United is subject to income taxation in the United States and various state jurisdictions. United’s federal and state income tax returns are filed on a consolidated basis. Currently, no years for which United filed a federal income tax return are under examination by the IRS, and there are no state tax examinations currently in progress. United is no longer subject to income tax examinations from state and local income tax authorities for years before 2011. Although United is unable to determine the ultimate outcome of future examinations, United believes that the liability recorded for uncertain tax positions is appropriate.

33

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

At June 30, 2015, December 31, 2014 and June 30, 2014, unrecognized income tax benefits totaled $4.38 million, $4.20 million and $4.69 million, respectively.

Note 14 – Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, United uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). United has processes in place to review the significant valuation inputs and to reassess how the instruments are classified in the valuation framework.

Fair Value Hierarchy

Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access.

Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. United’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.

Securities Available-for-Sale

Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds, corporate debt securities and asset-backed securities and are valued based on observable inputs that include: quoted market prices for similar assets, quoted market prices that are not in an active market, or other inputs that are observable in the market and can be corroborated by observable market data for substantially the full term of the securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Securities classified as Level 3 are valued based on estimates obtained from broker-dealers and are not directly observable.

Deferred Compensation Plan Assets and Liabilities

Included in other assets in the Consolidated Balance Sheet are assets related to employee deferred compensation plans. The assets associated with these plans are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which mirrors the fair value of the invested assets and is included in other liabilities in the consolidated balance sheet.

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at the lower of cost or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for mortgage loans with similar characteristics.

34

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES 

Notes to Consolidated Financial Statements 

Loans

United does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, a creditor may measure impairment based on a loan’s observable market price, or the fair value of the collateral if repayment of the loan is dependent upon the sale of the underlying collateral. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with ASC 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the impaired loan as nonrecurring Level 3.

Foreclosed Assets

Foreclosed assets are adjusted to fair value, less cost to sell, upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the foreclosed asset as nonrecurring Level 3.

Derivative Financial Instruments

United uses interest rate swaps and interest rate floors to manage its interest rate risk. The valuation of these instruments is typically determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with the provisions of ASC 820, United incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, United has considered the effect of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although management has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2015, management had assessed the significance of the effect of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. Additionally, in the review of the structured derivative inputs, it was determined that the broker quotes, used as a key valuation input, were not observable consistent with a level 2 disclosure. This resulted in United transferring those derivatives to Level 3 in the ASC 820 leveling disclosures as of December 31, 2014.

Servicing Rights for Government Guaranteed Loans

As United expanded its government guaranteed lending and subsequent loan sales activities, a servicing asset has been recognized (per ASC 860). This asset is recorded at fair value on recognition, and management has elected to carry this asset at fair value for subsequent reporting. Given the nature of the asset, the key valuation inputs are unobservable and management classifies this asset as Level 3.

35

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

June 30, 2015		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	127,901	$	-	$	-	$	127,901
U.S. Government agencies		-		110,311		-		110,311
State and political subdivisions		-		30,764		-		30,764
Mortgage-backed securities		-		998,116		-		998,116
Corporate bonds		-		206,274		750		207,024
Asset-backed securities		-		466,332		-		466,332
Other		-		1,871		-		1,871
Deferred compensation plan assets		3,429		-		-		3,429
Servicing rights for government guaranteed loans		-		-		3,118		3,118
Derivative financial instruments		-		10,197		11,531		21,728
Total assets	$	131,330	$	1,823,865	$	15,399	$	1,970,594
Liabilities:
Deferred compensation plan liability	$	3,429	$	-	$	-	$	3,429
Derivative financial instruments		-		14,113		18,261		32,374
Total liabilities	$	3,429	$	14,113	$	18,261	$	35,803
December 31, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	105,709	$	-	$	-	$	105,709
U.S. Government agencies		-		36,299		-		36,299
State and political subdivisions		-		20,233		-		20,233
Mortgage-backed securities		-		996,820		-		996,820
Corporate bonds		-		164,878		750		165,628
Asset-backed securities		-		455,928		-		455,928
Other		-		2,117		-		2,117
Deferred compensation plan assets		3,864		-		-		3,864
Servicing rights for government guaranteed loans				-		2,551		2,551
Derivative financial instruments		-		8,337		12,262		20,599
Total assets	$	109,573	$	1,684,612	$	15,563	$	1,809,748
Liabilities:
Deferred compensation plan liability	$	3,864	$	-	$	-	$	3,864
Derivative financial instruments		-		13,018		18,979		31,997
Total liabilities	$	3,864	$	13,018	$	18,979	$	35,861

36

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements 

June 30, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	-	$	15,508	$	-	$	15,508
State and political subdivisions		-		21,815		-		21,815
Mortgage-backed securities		-		1,077,440		-		1,077,440
Corporate bonds		-		175,671		300		175,971
Asset-backed securities		-		448,323		-		448,323
Other		-		2,211		-		2,211
Deferred compensation plan assets		3,715		-		-		3,715
Derivative financial instruments		-		22,024		-		22,024
Total assets	$	3,715	$	1,762,992	$	300	$	1,767,007
Liabilities:
Deferred compensation plan liability	$	3,715	$	-	$	-	$	3,715
Brokered certificates of deposit		-		179,215		-		179,215
Derivative financial instruments		-		36,545		-		36,545
Total liabilities	$	3,715	$	215,760	$	-	$	219,475

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2015											2014
		Derivative Asset			Derivative Liability			Servicing rights for government guaranteed loans			Securities Available-for- Sale		Securities Available-for- Sale
Three Months Ended June 30,
Balance at beginning of period	$	8,117		$	14,529		$	2,717		$	750	$	350
Additions		-			-			442			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		3,414			3,732			(41	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300
Six Months Ended June 30,
Balance at beginning of period	$	12,262		$	18,979		$	2,551		$	750	$	350
Additions		-			-			632			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		(731	)		(718	)		(65	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300

37

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

Fair Value

Weighted Average

Level 3 Assets

June 30, 2015

December 31, 2014

June 30, 2014

Valuation Technique

Unobservable Inputs

June 30, 2015

December 31, 2014

Servicing Rights for

$

3,118

$

2,551

$

-

Discounted

Discount rate

11.0

%

12.0

%

Government

cash flow

Prepayment Rate

6.98

%

6.70

%

Guaranteed Loans

Corporate Bonds

750

750

300

Indicative bid

Multiple factors, including but not

N/A

N/A

provided by a

limited to, current operations,

broker

financial condition, cash flows, and

recently executed financing

transactions related to the company

Derivative assets

11,531

12,262

-

Dealer Priced

Dealer Priced

N/A

N/A

Derivative liabilities

18,261

18,979

-

Dealer Priced

Dealer Priced

N/A

N/A

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

United may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These assets are not measured at fair value on a recurring basis, but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment. The following table presents the fair value hierarchy and carrying value of all assets that were still held as of June 30, 2015, December 31, 2014 and June 30, 2014, for which a nonrecurring fair value adjustment was recorded during the periods presented (in thousands).

June 30, 2015	Level 1		Level 2		Level 3		Total
Loans	$	-	$	-	$	3,907	$	3,907
December 31, 2014
Loans	$	-	$	-	$	7,317	$	7,317
June 30, 2014
Loans	$	-	$	-	$	8,641	$	8,641

Loans that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have either been partially charged off or have specific reserves assigned to them. Nonaccrual impaired loans that are collateral dependent are generally written down to 80% of appraised value which considers the estimated costs to sell. Specific reserves are established for impaired loans based on appraised value of collateral or discounted cash flows, although only those specific reserves based on the fair value of collateral are considered nonrecurring fair value adjustments. As discussed in Note 2, United retrospectively adopted ASU 2015-10 Technical Corrections and Improvements during second quarter 2015, which clarified the guidance for disclosure of nonrecurring fair value measurements and has been reflected in the disclosures presented in the table above.

Assets and Liabilities Not Measured at Fair Value

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

38

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

United’s cash and cash equivalents and repurchase agreements have short maturities and therefore the carrying value approximates fair value. The fair value of securities available-for-sale equals the balance sheet value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. Because no ready market exists for a significant portion of United’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Off-balance sheet instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial.

The carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis in United’s balance sheet at June 30, 2015, December 31, 2014, and June 30, 2014 are as follows (in thousands). 

		Carrying		Fair Value Level
June 30, 2015		Amount		Level 1		Level 2		Level 3		Total
Assets:
Securities held to maturity	$	379,757	$	-	$	388,066	$	-	$	388,066
Loans, net		5,103,388		-		-		5,083,619		5,083,619
Mortgage loans held for sale		22,003		-		22,312		-		22,312
Liabilities:
Deposits		6,807,943		-		6,808,029		-		6,808,029
Federal Home Loan Bank advances		385,125		-		385,121		-		385,121
Long-term debt		113,901		-		-		116,307		116,307
December 31, 2014
Assets:
Securities held to maturity		415,267		-		425,233		-		425,233
Loans, net		4,600,500		-		-		4,549,027		4,549,027
Mortgage loans held for sale		13,737		-		14,139		-		14,139
Liabilities:
Deposits		6,326,513		-		6,328,264		-		6,328,264
Federal Home Loan Bank advances		270,125		-		270,125		-		270,125
Long-term debt		129,865		-		-		132,814		132,814
June 30, 2014
Assets:
Securities held to maturity		448,752		-		458,864		-		458,864
Loans, net		4,337,037		-		-		4,275,708		4,275,708
Mortgage loans held for sale		14,918		-		15,157		-		15,157
Liabilities:
Deposits		6,163,545		-		6,152,839		-		6,152,839
Federal Home Loan Bank advances		175,125		-		175,125		-		175,125
Long-term debt		129,865		-		-		132,145		132,145

39

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 15 – Commitments and Contingencies

United is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement United has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. United uses the same credit policies in making commitments and conditional obligations as it uses for underwriting on-balance sheet instruments. In most cases, collateral or other security is required to support financial instruments with credit risk.

The following table summarizes, as of June 30, 2015, December 31, 2014 and June 30, 2014, the contractual amount of off-balance sheet instruments (in thousands).

	June 30, 2015		December 31, 2014		June 30, 2014
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,047,970	$	878,160	$	797,068
Letters of credit		21,726		19,861		20,682

United, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on United’s financial position or results of operations.

Note 16 – Goodwill and Other Intangible Assets

The carrying amount of goodwill and other intangible assets is summarized below (in thousands): 

	June 30, 2015			December 31, 2014			June 30, 2014
Core deposit intangible	$	36,872		$	32,652		$	32,652
Less: accumulated amortization		(31,209	)		(30,520	)		(29,921	)
Total intangibles subject to amortization, net		5,663			2,132			2,731
Goodwill		14,527			1,509			-
Total goodwill and other intangible assets, net	$	20,190		$	3,641		$	2,731

The following is a summary of changes in the carrying amounts of goodwill (in thousands):

	For the three months ended June 30,							For the six months ended June 30,
2015	Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses		Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses
Balance, beginning of period	$	307,099	$	(305,590	)	$	1,509	$	307,099	$	(305,590	)	$	1,509
Acquisition of MoneyTree		13,018		-			13,018		13,018		-			13,018
Balance, end of period	$	320,117	$	(305,590	)	$	14,527	$	320,117	$	(305,590	)	$	14,527

40

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

The amortization expense for intangibles subject to amortization for the three and six months ended June 30, 2015 was $447,000 and $689,000, respectively, which was recognized in operating expenses. The amortization expense for intangibles subject to amortization for the three and six months ended June 30, 2014 was $362,000 and $749,000, respectively. The estimated aggregate amortization expense for future periods is as follows (in thousands):

Year
Remainder of 2015	$	1,063
2016		1,919
2017		1,115
2018		695
2019		479
Thereafter		392
Total	$	5,663

41

Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), about United and its subsidiaries. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, and can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “projects”, “plans”, “goal”, “targets”, “potential”, “estimates”, “pro forma”, “seeks”, “intends”, or “anticipates”, the negative thereof or comparable terminology. Forward-looking statements include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of various transactions or events, and statements about the future performance, operations, products and services of United and its subsidiaries. We caution our shareholders and other readers not to place undue reliance on such statements.

Our businesses and operations are and will be subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experiences may differ materially from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experiences to differ from those projected include, but are not limited to, the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2014 as well as the following factors:

· the condition of the general business and economic environment;

· the results of our internal credit stress tests may not accurately predict the impact on our financial condition if the economy were to deteriorate;

· our ability to maintain profitability;

· our ability to fully realize the balance of our net deferred tax asset, including net operating loss carryforwards;

· the risk that we may be required to increase the valuation allowance on our net deferred tax asset in future periods;

· the condition of the banking system and financial markets;

· our ability to raise capital;

· our ability to maintain liquidity or access other sources of funding;

· changes in the cost and availability of funding;

· the success of the local economies in which we operate;

· our lack of geographic diversification;

· our concentrations of residential and commercial construction and development loans and commercial real estate loans are subject to unique risks that could adversely affect our earnings;

· changes in prevailing interest rates may negatively affect our net income and the value of our assets and other interest rate risks;

· our accounting and reporting policies;

· if our allowance for loan losses is not sufficient to cover actual loan losses;

· losses due to fraudulent and negligent conduct of our loan customers, third party service providers or employees;

· risks related to our communications and information systems, including risks with respect to cybersecurity breaches;

· our reliance on third parties to provide key components of our business infrastructure and services required to operate our business;

· competition from financial institutions and other financial service providers;

· risks with respect to our ability to successfully expand and complete acquisitions and integrate businesses and operations that are acquired;

· if the conditions in the stock market, the public debt market and other capital markets deteriorate;

· the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and related regulations;

· changes in laws and regulations or failures to comply with such laws and regulations;

· changes in regulatory capital and other requirements;

· the costs and effects of litigation, examinations, investigations, or similar matters, or adverse facts and developments related thereto, including possible dilution;

· regulatory or judicial proceedings, board resolutions, informal memorandums of understanding or formal enforcement actions imposed by regulators that may occur;

· changes in tax laws, regulations and interpretations or challenges to our income tax provision; and

· our ability to maintain effective internal controls over financial reporting and disclosure controls and procedures.

Additional information with respect to factors that may cause actual results to differ materially from those contemplated by such forward-looking statements may also be included in other reports that United files with the Securities and Exchange Commission (the “SEC”). United cautions that the foregoing list of factors is not exclusive and not to place undue reliance on forward-looking statements. United does not intend to update any forward-looking statement, whether written or oral, relating to the matters discussed in this Form 10-Q.

42

Overview

The following discussion is intended to provide insight into the results of operations and financial condition of United Community Banks, Inc. (“United”) and its subsidiaries and should be read in conjunction with United’s consolidated financial statements and accompanying notes.

United is a bank holding company registered with the Board of Governors of the Federal Reserve under the Bank Holding Company Act of 1956 that was incorporated under the laws of the state of Georgia in 1987 and commenced operations in 1988. At June 30, 2015, United had total consolidated assets of $8.25 billion, total loans of $5.17 billion, total deposits of $6.81 billion, and shareholders’ equity of $827 million.

United conducts substantially all of its operations through its wholly-owned Georgia bank subsidiary, United Community Bank (the “Bank”), which as of June 30, 2015, operated at 114 locations throughout the Atlanta-Sandy Springs-Roswell, Georgia, Gainesville, Georgia and Greenville-Anderson-Mauldin, South Carolina metropolitan statistical areas, north and coastal Georgia, western North Carolina, and east Tennessee. Also, United has commercial loan offices in Nashville, Tennessee and Charlotte, North Carolina.

On May 1, 2015, United completed the acquisition of MoneyTree Corporation (“MoneyTree”) and its wholly-owned bank subsidiary First National Bank (“FNB”). MoneyTree’s results are included in United’s consolidated results beginning on the acquisition date. Also included in management’s discussion and analysis are certain non-GAAP (accounting principles generally accepted in the United States of America (“GAAP”)) performance measures. United’s management believes that non-GAAP performance measures are useful in analyzing United’s financial performance trends and therefore this section will refer to non-GAAP performance measures. A reconciliation of these non-GAAP performance measures to GAAP performance measures is included in the table on page 47.

United reported net income of $17.8 million for the second quarter of 2015. This compared to net income of $16.4 million for the second quarter of 2014. Diluted earnings per common share were $.28 for the second quarter of 2015, compared to diluted earnings per common share of $.27 for the second quarter of 2014.

For the six months ended June 30, 2015, United reported net income of $35.5 million. This compared to net income of $31.8 million for the first six months of 2014. Diluted earnings per common share were $.57 for the six months ended June 30, 2015, compared to diluted earnings per common share of $.52 for the six months ended June 30, 2014.

Taxable equivalent net interest revenue increased to $61.3 million for the second quarter of 2015, compared to $55.0 million for the same period of 2014, primarily due to loan growth combined with an increase in the net interest margin. Net interest margin increased to 3.30% for the three months ended June 30, 2015 from 3.21% for the same period in 2015. For the six months ended June 30, 2015, taxable equivalent net interest revenue was $119 million compared to $109 million for the same period of 2014, primarily due to the same reasons mentioned above. Net interest margin increased to 3.30% for the six months ended June 30, 2015 from 3.21% for the same period in 2015. In the second quarter of 2014, United executed a number of balance sheet management activities, including restructuring interest rate swaps, selling investment securities and repaying high cost wholesale borrowings with the intent of improving the net interest margin and increasing net interest revenue. These balance sheet management activities, along with strong loan growth over the last four quarters, had the desired effect of increasing net interest revenue and net interest margin which has held steady in the low 3.30% range since the second quarter 2014 restructuring activities.

United’s provision for credit losses was $900,000 for the second quarter of 2015, compared to $2.20 million for the same period in 2014. Net charge-offs for the second quarter of 2015 were $978,000, compared to $4.18 million for the second quarter of 2014. Strong recoveries of previously charged-off loans drove net charge-offs down in the second quarter of 2015. For the six months ended June 30, 2015, United’s provision for loan losses was $2.70 million, compared to $4.70 million for the same period of 2014. United’s credit quality indicators have shown improvement over the last four quarters leading to lower net charge offs and provisions for credit losses.

As of June 30, 2015, United’s allowance for loan losses was $70.1 million, or 1.36% of loans, compared to $71.6 million, or 1.53% of loans, at December 31, 2014 and $73.2 million, or 1.66% of loans, at June 30, 2014. In accordance with the accounting guidance for business combinations, there was no allowance for loan losses brought forward on loans acquired from MoneyTree, as credit deterioration was included in the determination of fair value at acquisition date. At June 30, 2015, United recorded no allowance for loan losses on loans acquired from FNB as there was no evidence of credit deterioration beyond that which was incorporated into the determination of fair value at acquisition date. Nonperforming assets of $21.2 million were .26% of total assets at June 30, 2015, the same level as December 31, 2014 and down from .32% as of June 30, 2014, due to ongoing improving credit conditions. During the second quarter of 2015, $6.55 million in loans were placed on nonaccrual compared with $9.53 million in the second quarter of 2014.

Fee revenue of $17.3 million for the second quarter of 2015 was up $3.12 million, or 22%, from the second quarter of 2014. The increase was partly due to $1.49 million in gains from the sales of government guaranteed loans in the second quarter of 2015, compared to $744,000 in the second quarter of 2014. United began selling the guaranteed portion of Small Business Administration (“SBA”) / United States Department of Agriculture (“USDA”) loans in the second quarter of 2014 as part of its emphasis on growing the government guaranteed lending business. Mortgage fees of $3.71 million for the second quarter of 2015 increased from $1.88 million in the second quarter of 2014. The increase was due to United’s emphasis on growing its mortgage business by recruiting lenders in metropolitan markets and a wave of refinancing activity in the second quarter of 2015. For the first six months of 2015, fee revenue of $32.9 million increased $6.63 million, or 25%, from the same period in 2014, primarily due to the same factors resulting in the quarterly increase.

43

For the second quarter of 2015, operating expenses of $48.4 million were up $7.89 million from the second quarter of 2014, partially due to the addition of FNB’s operating expenses since acquisition. Salaries and benefits expense increased $3.67 million from a year ago mostly due to the investment in additional staff and new teams to expand the specialized lending area as well as higher incentive compensation in connection with increased lending activities and improvement in earnings performance. In addition, merger-related charges of $3.17 million were expensed in second quarter 2015. For the six months ended June 30, 2015, operating expenses of $91.5 million were up $11.9 million from the same period, mainly due to the same factors that caused the quarterly increase. The increase also reflects first quarter 2015 charges of $690,000 to terminate and settle the loss sharing agreements with the Federal Deposit Insurance Corporation (the “FDIC”) related to United’s 2009 acquisition of Southern Community Bank and a $420,000 loss on a fraudulent home equity line of credit transaction that are reflected in other operating expense.

Recent Developments

Pending Acquisition of Palmetto Bancshares, Inc.

On April 22, 2015, United announced that it had reached a definitive agreement to acquire Palmetto Bancshares, Inc. (“Palmetto”) and its wholly-owned bank subsidiary The Palmetto Bank (the “Merger”). The Palmetto Bank is the third largest banking institution headquartered in South Carolina, with total assets of $1.2 billion, loans of $832 million and deposits of $967 million. It is a 108-year old community bank that serves Upstate South Carolina through 25 branch locations in nine counties along the Interstate 85 corridor. The Palmetto Bank will merge into, and operate under the brand of, United Community Bank. 

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Palmetto shareholders will have the right to receive $19.25 in cash or 0.97 shares of United common stock, or any combination thereof, for each share of Palmetto common stock. The cash and stock elections are subject to proration to ensure that 30% of the outstanding shares of Palmetto common stock will be exchanged for cash and 70% of the outstanding shares of Palmetto common stock will be exchanged for shares of United common stock in the Merger. Based on United’s ten-day average closing price of $21.21 per share as of July 31, 2015, the aggregate deal value of the Merger is approximately $262 million. 

The Merger, which has received all regulatory approvals, is subject to the approval of the shareholders of Palmetto and other customary conditions. A special meeting of the shareholders of Palmetto will be held on August 12, 2015. The Merger is expected to close on September 1, 2015. 

Senior Note Offering 

On July 30, 2015, United announced a public offering of senior fixed to floating rate notes. Pursuant to such offering, United expects to issue $50 million aggregate principal amount of 5.00% Senior Fixed to Floating Rate Notes due February 14, 2022 (the “2022 Notes”) and $35 million aggregate principal amount of 5.50% Senior Fixed to Floating Rate Notes due February 14, 2027 (the “2027 Notes” and, together with the 2022 Notes, the “Notes”). We will pay interest on the 2022 Notes semi-annually on February 14 and August 14 of each year, with interest accruing from and including August 14, 2015 to but excluding August 14, 2020, at a fixed rate of 5.00% per year. From and including August 14, 2020 through the maturity date, we will pay interest on the 2022 Notes quarterly on February 14, May 14, August 14 and November 14 of each year at a floating rate equal to three-month LIBOR plus 381.4 basis points. We will pay interest on the 2027 Notes semi-annually on February 14 and August 14 of each year, with interest accruing from and including August 14, 2015 to but excluding August 14, 2025, at a fixed rate of 5.50% per year. From and including August 14, 2025 through the maturity date, we will pay interest on the 2027 Notes quarterly on February 14, May 14, August 14 and November 14 of each year at a floating rate equal to three-month LIBOR plus 371 basis points. We may elect to redeem the 2022 Notes, in whole or in part, on any interest payment date on or after August 14, 2020 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. We may elect to redeem the 2027 Notes, in whole or in part, on any interest payment date on or after August 14, 2025 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. We intend to use the net proceeds from the issuance of the Notes for the financing of the cash consideration payable by United in connection with the Merger and for general corporate purposes, which may include the potential repayment or redemption of trust preferred securities and other indebtedness and other acquisitions.

Critical Accounting Policies

The accounting and reporting policies of United are in accordance with GAAP and conform to general practices within the banking industry. The more critical accounting and reporting policies include United’s accounting for the allowance for loan losses, fair value measurements, and income taxes which involve the use of estimates and require significant judgments to be made by management. Different assumptions in the application of these policies could result in material changes in United’s consolidated financial position or consolidated results of operations. See “Asset Quality and Risk Elements” herein for additional discussion of United’s accounting methodologies related to the allowance for loan losses.

44

GAAP Reconciliation and Explanation

This Form 10-Q contains non-GAAP financial measures, which are performance measures determined by methods other than in accordance with GAAP. Such non-GAAP financial measures include, among others the following: taxable equivalent interest revenue, taxable equivalent net interest revenue, tangible book value per share, tangible equity to assets, tangible common equity to assets and tangible common equity to risk-weighted assets. Management uses these non-GAAP financial measures because it believes they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. A reconciliation of these operating performance measures to GAAP performance measures is included in on the table on page 47.

Results of Operations

United reported net income of $17.8 million for the second quarter of 2015. This compared to net income of $16.4 million for the same period in 2014. For the second quarter of 2015, diluted earnings per common share were $.28 compared to $.27 for the second quarter of 2014. For the six months ended June 30, 2015, United reported net income of $35.5 million compared to net income of $31.8 million for the same period in 2014.

United reported net operating income of $20.0 million and $37.7 million, respectively, for the second quarter of 2015 and the first half of 2015, compared to $16.4 million and $31.3 million, respectively, for the same periods in 2014. Operating earnings exclude the effects of merger-related charges, which totaled $2.18 million net of tax.

45

Table 1 - Financial Highlights

Selected Financial Information

																		For the Six
	2015						2014								Second Quarter			Months Ended June 30,						YTD
(in thousands, except per share	Second			First			Fourth			Third			Second		2015-2014									2015-2014
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter		Change			2015			2014			Change
INCOME SUMMARY
Interest revenue	$	66,134		$	62,909		$	64,353		$	63,338		$	61,783				$	129,043		$	122,278
Interest expense		4,817			5,292			6,021			6,371			6,833					10,109			13,159
Net interest revenue		61,317			57,617			58,332			56,967			54,950		12	%		118,934			109,119			9	%
Provision for credit losses		900			1,800			1,800			2,000			2,200					2,700			4,700
Fee revenue		17,266			15,682			14,823			14,412			14,143		22			32,948			26,319			25
Total revenue		77,683			71,499			71,355			69,379			66,893		16			149,182			130,738			14
Expenses - operating (1)		45,247			43,061			41,919			41,364			40,532		12			88,308			79,582			11
Income before income tax expense - operating (1)		32,436			28,438			29,436			28,015			26,361		23			60,874			51,156			19
Income tax expense - operating (1)		12,447			10,768			11,189			10,399			10,004		24			23,215			19,399			20
Net income - operating (1)		19,989			17,670			18,247			17,616			16,357		22			37,659			31,757			19
Preferred dividends and discount accretion		17			-			-			-			-					17			439
Net income available to common shareholders - operating (1)		19,972			17,670			18,247			17,616			16,357		22			37,642			31,318			20
Merger-related charges, net of income tax benefit		2,176			-			-			-			-					2,176			-
Net income available to common shareholders - GAAP	$	17,796		$	17,670		$	18,247		$	17,616		$	16,357		9		$	35,466		$	31,318			13
PERFORMANCE MEASURES
Per common share:
Diluted income - operating(1)	$	.32		$	.29		$	.30		$	.29		$	.27		19		$	.61		$	.52			17
Diluted income - GAAP		.28			.29			.30			.29			.27		4			.57			.52			10
Cash dividends declared		.05			.05			.05			.03			.03					.10			.03
Book value		12.95			12.58			12.20			12.15			11.94		8			12.95			11.94			8
Tangible book value (3)		12.66			12.53			12.15			12.10			11.91		6			12.66			11.91			6
Key performance ratios:
Return on common equity - operating (1)(2)(4)		9.90	%		9.34	%		9.60	%		9.41	%		8.99	%				9.63	%		8.82	%
Return on common equity - GAAP (2)(4)		8.83			9.34			9.60			9.41			8.99					9.08			8.82
Return on assets - operating (1)(4)		1.00			.94			.96			.95			.88					.97			.87
Return on assets - GAAP (4)		.89			.94			.96			.95			.88					.92			.87
Dividend payout ratio - operating (1)		15.63			17.24			16.67			10.34			11.11					16.39			5.77
Dividend payout ratio - GAAP		17.86			17.24			16.67			10.34			11.11					17.54			5.77
Net interest margin (4)		3.30			3.31			3.31			3.32			3.21					3.30			3.21
Efficiency ratio - operating(1)		57.59			59.15			57.47			57.96			58.65					58.34			58.85
Efficiency ratio - GAAP		61.63			59.15			57.47			57.96			58.65					60.44			58.85
Average equity to average assets		10.05			9.86			9.76			9.85			9.61					9.96			9.56
Average tangible equity to average assets (3)		9.91			9.82			9.72			9.83			9.58					9.87			9.54
Average tangible common equity to average assets (3)		9.83			9.82			9.72			9.83			9.58					9.83			9.40
Tangible common equity to risk-weighted assets (3)(5)		13.24			13.53			13.82			14.10			13.92					13.24			13.92
ASSET QUALITY
Nonperforming loans	$	18,805		$	19,015		$	17,881		$	18,745		$	20,724		(9	)	$	18,805		$	20,724
Foreclosed properties		2,356			1,158			1,726			3,146			2,969		(21	)		2,356			2,969
Total nonperforming assets (NPAs)		21,161			20,173			19,607			21,891			23,693		(11	)		21,161			23,693
Allowance for loan losses		70,129			70,007			71,619			71,928			73,248					70,129			73,248
Net charge-offs		978			2,562			2,509			3,155			4,175		(77	)		3,540			8,214
Allowance for loan losses to loans		1.36	%		1.46	%		1.53	%		1.57	%		1.66	%				1.36	%		1.66	%
Net charge-offs to average loans (4)		.08			.22			.22			.28			.38					.15			.38
NPAs to loans and foreclosed properties		.41			.42			.42			.48			.54					.41			.54
NPAs to total assets		.26			.26			.26			.29			.32					.26			.32
AVERAGE BALANCES ($ in millions)
Loans	$	5,017		$	4,725		$	4,621		$	4,446		$	4,376		15		$	4,872		$	4,366			12
Investment securities		2,261			2,203			2,222			2,231			2,326		(3	)		2,232			2,323			(4	)
Earning assets		7,444			7,070			7,013			6,820			6,861		8			7,258			6,844			6
Total assets		8,017			7,617			7,565			7,374			7,418		8			7,818			7,401			6
Deposits		6,669			6,369			6,383			6,143			6,187		8			6,520			6,192			5
Shareholders’ equity		806			751			738			726			713		13			778			708			10
Common shares - basic (thousands)		62,549			60,905			60,830			60,776			60,712					61,730			60,386			2
Common shares - diluted (thousands)		62,553			60,909			60,833			60,779			60,714					61,734			60,388			2
AT PERIOD END ($ in millions)
Loans	$	5,174		$	4,788		$	4,672		$	4,569		$	4,410		17		$	5,174		$	4,410			17
Investment securities		2,322			2,201			2,198			2,222			2,190		6			2,322			2,190			6
Total assets		8,246			7,664			7,567			7,526			7,352		12			8,246			7,352			12
Deposits		6,808			6,438			6,327			6,241			6,164		10			6,808			6,164			10
Shareholders’ equity		827			764			740			736			722		15			827			722			15
Common shares outstanding (thousands)		62,700			60,309			60,259			60,248			60,139					62,700			60,139

(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) June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.

46

Table 1 - Non-GAAP Performance Measures Reconciliation

Selected Financial Information

	2015						2014									For the Six Months Ended June 30,
(in thousands, except per share	Second			First			Fourth			Third			Second
data; taxable equivalent)	Quarter			Quarter			Quarter			Quarter			Quarter			2015			2014
Interest revenue reconciliation
Interest revenue - taxable equivalent	$	66,134		$	62,909		$	64,353		$	63,338		$	61,783		$	129,043		$	122,278
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Interest revenue (GAAP)	$	65,808		$	62,534		$	63,955		$	62,933		$	61,406		$	128,342		$	121,544
Net interest revenue reconciliation
Net interest revenue - taxable equivalent	$	61,317		$	57,617		$	58,332		$	56,967		$	54,950		$	118,934		$	109,119
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Net interest revenue (GAAP)	$	60,991		$	57,242		$	57,934		$	56,562		$	54,573		$	118,233		$	108,385
Total revenue reconciliation
Total operating revenue	$	77,683		$	71,499		$	71,355		$	69,379		$	66,893		$	149,182		$	130,738
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Total revenue (GAAP)	$	77,357		$	71,124		$	70,957		$	68,974		$	66,516		$	148,481		$	130,004
Expense reconciliation
Expenses - operating	$	45,247		$	43,061		$	41,919		$	41,364		$	40,532		$	88,308		$	79,582
Merger-related charges		3,173			-			-			-			-			3,173			-
Expenses (GAAP)	$	48,420		$	43,061		$	41,919		$	41,364		$	40,532		$	91,481		$	79,582
Income before taxes reconciliation
Income before taxes - operating	$	32,436		$	28,438		$	29,436		$	28,015		$	26,361		$	60,874		$	51,156
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Merger-related charges		(3,173	)		-			-			-			-			(3,173	)		-
Income before taxes (GAAP)	$	28,937		$	28,063		$	29,038		$	27,610		$	25,984		$	57,000		$	50,422
Income tax expense reconciliation
Income tax expense - operating	$	12,447		$	10,768		$	11,189		$	10,399		$	10,004		$	23,215		$	19,399
Taxable equivalent adjustment		(326	)		(375	)		(398	)		(405	)		(377	)		(701	)		(734	)
Merger-related charges, tax benefit		(997	)		-			-			-			-			(997	)		-
Income tax expense (GAAP)	$	11,124		$	10,393		$	10,791		$	9,994		$	9,627		$	21,517		$	18,665
Net income reconciliation
Net income - operating	$	19,989		$	17,670		$	18,247		$	17,616		$	16,357		$	37,659		$	31,757
Merger-related charges, net of income tax benefit		(2,176	)		-			-			-			-			(2,176	)		-
Net income (GAAP)	$	17,813		$	17,670		$	18,247		$	17,616		$	16,357		$	35,483		$	31,757
Net income available to common shareholders reconciliation
Net income available to common shareholders - operating	$	19,972		$	17,670		$	18,247		$	17,616		$	16,357		$	37,642		$	31,318
Merger-related charges, net of income tax benefit		(2,176	)		-			-			-			-			(2,176	)		-
Net income available to common shareholders (GAAP)	$	17,796		$	17,670		$	18,247		$	17,616		$	16,357		$	35,466		$	31,318
Diluted income per common share reconciliation
Diluted income per common share - operating	$	.32		$	.29		$	.30		$	.29		$	.27		$	.61		$	.52
Merger-related charges		(.04	)		-			-			-			-			(.04	)		-
Diluted income per common share (GAAP)	$	.28		$	.29		$	.30		$	.29		$	.27		$	.57		$	.52
Book value per common share reconciliation
Tangible book value per common share	$	12.66		$	12.53		$	12.15		$	12.10		$	11.91		$	12.66		$	11.91
Effect of goodwill and other intangibles		.29			.05			.05			.05			.03			.29			.03
Book value per common share (GAAP)	$	12.95		$	12.58		$	12.20		$	12.15		$	11.94		$	12.95		$	11.94
Return on common equity reconciliation
Return on common equity - operating		9.90	%		9.34	%		9.60	%		9.41	%		8.99	%		9.63	%		8.82	%
Merger-related charges		(1.07	)		-			-			-			-			(.55	)		-
Return on common equity (GAAP)		8.83	%		9.34	%		9.60	%		9.41	%		8.99	%		9.08	%		8.82	%
Return on assets reconciliation
Return on assets - operating		1.00	%		.94	%		.96	%		.95	%		.88	%		.97	%		.87	%
Merger-related charges		(.11	)		-			-			-			-			(.05	)		-
Return on assets (GAAP)		.89	%		.94	%		.96	%		.95	%		.88	%		.92	%		.87	%
Dividend payout ratio reconciliation
Dividend payout ratio - operating		15.63	%		17.24	%		16.67	%		10.34	%		11.11	%		16.39	%		5.77	%
Merger-related charges		2.23			-			-			-			-			1.15			-
Dividend payout ratio (GAAP)		17.86	%		17.24	%		16.67	%		10.34	%		11.11	%		17.54	%		5.77	%
Efficiency ratio reconciliation
Efficiency ratio - operating		57.59	%		59.15	%		57.47	%		57.96	%		58.65	%		58.34	%		58.85	%
Merger-related charges		4.04			-			-			-			-			2.10			-
Efficiency ratio (GAAP)		61.63	%		59.15	%		57.47	%		57.96	%		58.65	%		60.44	%		58.85	%
Average equity to assets reconciliation
Tangible common equity to assets		9.83	%		9.82	%		9.72	%		9.83	%		9.58	%		9.83	%		9.40	%
Effect of preferred equity		.08			-			-			-			-			.04			.14
Tangible equity to assets		9.91			9.82			9.72			9.83			9.58			9.87			9.54
Effect of goodwill and other intangibles		.14			.04			.04			.02			.03			.09			.02
Equity to assets (GAAP)		10.05	%		9.86	%		9.76	%		9.85	%		9.61	%		9.96	%		9.56	%
Tangible common equity to risk-weighted assets reconciliation (1)
Tangible common equity to risk-weighted assets		13.24	%		13.53	%		13.82	%		14.10	%		13.92	%		13.24	%		13.92	%
Effect of other comprehensive income		.28			.19			.35			.34			.53			.28			.53
Effect of deferred tax limitation		(2.46	)		(2.86	)		(3.11	)		(3.39	)		(3.74	)		(2.46	)		(3.74	)
Effect of trust preferred		.63			.67			1.00			1.02			1.04			.63			1.04
Effect of preferred equity		.17			-			-			-			-			.17			-
Tier I capital ratio (Regulatory)		11.86	%		11.53	%		12.06	%		12.07	%		11.75	%		11.86	%		11.75	%

⁽¹⁾ June 30 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.

47

Net Interest Revenue (Taxable Equivalent)

Net interest revenue (the difference between the interest earned on assets and the interest paid on deposits and borrowed funds) is the single largest component of total revenue. United actively manages the balance sheet to provide optimal levels of revenue while balancing interest rate, credit and liquidity risks. Taxable equivalent net interest revenue for the second quarter of 2015 was $61.3 million, up $6.37 million from the second quarter of 2014. The combination of growth in the loan portfolio, a higher yield on the securities portfolio and lower interest costs on deposits and borrowed funds were responsible for the increase in net interest revenue. United continues to focus on loan and deposit pricing in an effort to maintain a steady level of net interest revenue. The acquisition of MoneyTree on May 1, 2015 also contributed to the increase as MoneyTree’s results are included in consolidated results beginning on the acquisition date.

While average loans increased $641 million, or 15%, from the second quarter of last year, the yield on loans decreased 20 basis points, reflecting the continuing effect of the low interest rate environment and pricing competition for a limited number of quality lending opportunities.

Average interest-earning assets for the second quarter of 2015 increased $584 million, or 9%, from the second quarter of 2014, which was due primarily to the increase in loans, including the acquisition of MoneyTree loans, offset by a decrease in the securities portfolio. Average investment securities for the second quarter of 2015 decreased $64.8 million from a year ago as United’s earning asset mix shifted to loans. The average yield on the investment portfolio increased 4 basis points from a year ago, mostly due to changes in the asset mix resulting from portfolio restructuring activities executed in the second quarter of 2014.

During the second quarter of 2014, United sold approximately $237 million in securities which were mostly low-yielding variable-rate collateralized mortgage obligations (“CMOs”) and fixed rate corporate bonds that had been swapped to a floating rate. Improvement in the credit spreads on corporate bonds allowed United to sell the securities at an attractive gain that was used to repay $44 million in structured repurchase agreements that were paying a 4% interest rate. About $120 million of the proceeds from the sales of securities were reinvested in fixed rate mortgage-backed securities and higher yielding floating rate collateralized loan obligations to offset the impact of the decrease in interest revenue on the sold securities. These actions in the second quarter of 2014, along with strong loan growth in the four quarters that followed, were primarily responsible for increasing net interest revenue and improving the net interest margin, which has held steady in the low 3.30% range since the time of the restructuring.

Also in the second quarter of 2014, as a result of improvement in the interest sensitivity position, United effectively terminated $300 million notional in pay fixed forward starting swaps that were serving as cash flow hedges of LIBOR based wholesale borrowings and indexed money market deposits. The swaps were entered into in 2012 in anticipation of rising interest rates and had forward start dates that took effect in the first and second quarters of 2014. Changes in United’s balance sheet since that time made the hedges no longer necessary to achieve its desired interest sensitivity position. The termination of the cash flow hedges in the second quarter of 2014 lowered United’s deposit and wholesale borrowings costs and also contributed to the increase in net interest revenue and improvement in the net interest margin. In the fourth quarter of 2014 and first quarter of 2015, United terminated the remaining $100 million and $175 million notional, respectively, in pay fixed cash flow hedges that were serving as cash flow hedges of LIBOR based money market deposits.

The above noted securities transactions increased the overall yield in the investment portfolio. The higher investment securities yields and the shift in composition of interest earning assets resulting from loan growth softened the impact of the 20 basis point decrease in the average loan yield on net interest revenue. Also, the decrease in the yield on interest-earning assets for the second quarter of 2015 compared with the second quarter of 2014 was held to only five basis points. The yield on other interest-earning assets decreased 50 basis points and the average balance increased $7.23 million from the second quarter of 2014. United utilizes reverse repurchase agreements, including collateral swap transactions, where the company enters into a repurchase agreement and reverse repurchase agreement simultaneously with the same counterparty subject to a master netting agreement. In these transactions, the offsetting balances are netted on the balance sheet.

Average interest-bearing liabilities of $5.34 billion for the second quarter of 2015 increased $236 million from the second quarter of 2014. Average noninterest bearing deposits increased $305 million from the second quarter of 2014 to $1.78 billion for the second quarter of 2015. The average cost of interest-bearing liabilities for the second quarter of 2015 was .36% compared to .54% for the same period of 2014, reflecting United’s concerted efforts to reduce its cost of funds. During the second quarter of 2014, in conjunction with balance sheet restructuring activities, United prepaid approximately $44 million in other borrowings that were costing approximately 4%. In the first quarter of 2015, United repaid the remaining balance of $6 million. Late in the first quarter of 2015, United redeemed $15 million in trust preferred securities with an average rate exceeding 11%. Also contributing to the overall lower rate on interest-bearing liabilities was a shift in the mix of deposits away from more expensive time deposits toward lower-rate transaction deposits.

48

The banking industry uses two ratios to measure relative profitability of net interest revenue. The net interest spread measures the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. The interest rate spread eliminates the effect of non-interest-bearing deposits and gives a direct perspective on the effect of market interest rate movements. The net interest margin is an indication of the profitability of a company’s balance sheet, and is defined as net interest revenue as a percent of average total interest-earning assets, which includes the positive effect of funding a portion of interest-earning assets with customers’ non-interest-bearing deposits and stockholders’ equity.

For the second quarters of 2015 and 2014, the net interest spread was 3.20% and 3.07%, respectively, while the net interest margin was 3.30% and 3.21%, respectively. The increase in both ratios reflects the impact of the second quarter 2014 balance sheet management activities described above as well as growth in the loan portfolio.

For the first six months of 2015, net interest revenue was $119 million, an increase of $9.82 million, or 9%, from the first six months of 2014. Average earning assets increased $414 million, or 6%, during the first six months of 2015, compared to the same period a year ago. The yield on earning assets decreased 2 basis points from 3.60% for the six months ended June 30, 2014, to 3.58% for the six months ended June 30, 2015, due to declining loan yields. The lower loan portfolio yield reflects competitive pricing pressure on new and renewed loans. Investment yields increased 12 basis points for the first six months of 2015 compared to the first six months of 2014, which helped offset some of the decrease on loan yields. The rate on interest bearing liabilities over the same period decreased 13 basis points. The lower yield on interest earning assets was more than offset by the reduction in rates paid on interest bearing liabilities, resulting in the net interest margin increasing 9 basis points from the six months ended June 30, 2014 to the six months ended June 30, 2015.

49

The following table shows the relationship between interest revenue and expense, and the average amounts of interest-earning assets and interest-bearing liabilities for the three months ended June 30, 2015 and 2014. 

Table 2 - Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 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)	$	5,017,306		$	53,081			4.24	%	$	4,376,174		$	48,435		4.44	%
Taxable securities (3)		2,235,561			11,856			2.12			2,306,457			11,972		2.08
Tax-exempt securities (1)(3)		25,685			296			4.61			19,592			316		6.45
Federal funds sold and other interest-earning assets		165,643			901			2.18			158,418			1,060		2.68
Total interest-earning assets		7,444,195			66,134			3.56			6,860,641			61,783		3.61
Non-interest-earning assets:
Allowance for loan losses		(71,006	)								(76,843	)
Cash and due from banks		77,124									63,853
Premises and equipment		167,926									161,443
Other assets (3)		398,356									408,768
Total assets	$	8,016,595								$	7,417,862
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,419,142			348			.10		$	1,356,141			411		.12
Money market		1,607,665			806			.20			1,361,045			757		.22
Savings		335,093			26			.03			275,540			21		.03
Time less than $100,000		774,193			791			.41			818,048			933		.46
Time greater than $100,000		474,905			482			.41			563,489			865		.62
Brokered time deposits		276,073			(378	)		(.55	)		334,919			220		.26
Total interest-bearing deposits		4,887,071			2,075			.17			4,709,182			3,207		.27
Federal funds purchased and other borrowings		47,698			82			.69			108,311			908		3.36
Federal Home Loan Bank advances		289,707			454			.63			154,795			80		.21
Long-term debt		113,901			2,206			7.77			129,865			2,638		8.15
Total borrowed funds		451,306			2,742			2.44			392,971			3,626		3.70
Total interest-bearing liabilities		5,338,377			4,817			.36			5,102,153			6,833		.54
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,782,405									1,477,849
Other liabilities		90,091									125,173
Total liabilities		7,210,873									6,705,175
Shareholders' equity		805,722									712,687
Total liabilities and shareholders’ equity	$	8,016,595								$	7,417,862
Net interest revenue				$	61,317								$	54,950
Net interest-rate spread								3.20	%							3.07	%
Net interest margin (4)								3.30	%							3.21	%

(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 $18.9 million in 2015 and pretax unrealized gains of $1.86 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.

50

The following table shows the relationship between interest revenue and expense, and the average amounts of interest-earning assets and interest-bearing liabilities for the six months ended June 30, 2015 and 2014.

Table 3 - Average Consolidated Balance Sheets and Net Interest Analysis

For the Six Months Ended June 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)	$	4,872,112		$	102,946			4.26	%	$	4,365,930		$	96,303		4.45	%
Taxable securities (3)		2,211,293			23,756			2.15			2,303,404			23,391		2.03
Tax-exempt securities (1)(3)		20,987			555			5.29			19,881			624		6.28
Federal funds sold and other interest-earning assets		153,597			1,786			2.33			154,651			1,960		2.53
Total interest-earning assets		7,257,989			129,043			3.58			6,843,866			122,278		3.60
Non-interest-earning assets:
Allowance for loan losses		(71,596	)								(77,165	)
Cash and due from banks		78,069									62,958
Premises and equipment		163,737									162,112
Other assets (3)		389,874									409,466
Total assets	$	7,818,073								$	7,401,237
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,447,370			742			.10		$	1,385,964			851		.12
Money market		1,537,678			1,479			.19			1,368,975			1,320		.19
Savings		317,814			46			.03			267,588			41		.03
Time less than $100,000		755,826			1,515			.40			847,707			1,946		.46
Time greater than $100,000		484,624			1,146			.48			570,799			1,783		.63
Brokered time deposits		274,708			(657	)		(.48	)		311,579			60		.04
Total interest-bearing deposits		4,818,020			4,271			.18			4,752,612			6,001		.25
Federal funds purchased and other borrowings		41,953			180			.87			110,436			1,748		3.19
Federal Home Loan Bank advances		264,584			846			.64			140,014			138		.20
Long-term debt		120,782			4,812			8.03			129,865			5,272		8.19
Total borrowed funds		427,319			5,838			2.76			380,315			7,158		3.80
Total interest-bearing liabilities		5,245,339			10,109			.39			5,132,927			13,159		.52
Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,702,140									1,439,447
Other liabilities		92,138									120,943
Total liabilities		7,039,617									6,693,317
Shareholders’ equity		778,456									707,920
Total liabilities and shareholders’ equity	$	7,818,073								$	7,401,237
Net interest revenue				$	118,934								$	109,119
Net interest-rate spread								3.19	%							3.08	%
Net interest margin (4)								3.30	%							3.21	%

⁽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 $14.8 million in 2015 and pretax unrealized losses of $1.37 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.

51

The following table shows the relative effect on net interest revenue for changes in the average outstanding amounts (volume) of interest-earning assets and interest-bearing liabilities and the rates earned and paid on such assets and liabilities (rate).  Variances resulting from a combination of changes in rate and volume are allocated in proportion to the absolute dollar amounts of the change in each category.

Table 4 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis

 (in thousands)

	Three Months Ended June 30, 2015									Six Months Ended June 30, 2015
	Compared to 2014									Compared to 2014
	Increase (decrease)									Increase (decrease)
	Due to Changes in									Due to Changes in
	Volume			Rate			Total			Volume			Rate			Total
Interest-earning assets:
Loans	$	6,855		$	(2,209	)	$	4,646		$	10,821		$	(4,178	)	$	6,643
Taxable securities		(373	)		257			(116	)		(958	)		1,323			365
Tax-exempt securities		84			(104	)		(20	)		33			(102	)		(69	)
Federal funds sold and other interest-earning assets		47			(206	)		(159	)		(13	)		(161	)		(174	)
Total interest-earning assets		6,613			(2,262	)		4,351			9,883			(3,118	)		6,765
Interest-bearing liabilities:
NOW accounts		18			(81	)		(63	)		36			(145	)		(109	)
Money market accounts		128			(79	)		49			162			(3	)		159
Savings deposits		5			-			5			7			(2	)		5
Time deposits less than $100,000		(48	)		(94	)		(142	)		(199	)		(232	)		(431	)
Time deposits greater than $100,000		(121	)		(262	)		(383	)		(244	)		(393	)		(637	)
Brokered deposits		(32	)		(566	)		(598	)		(6	)		(711	)		(717	)
Total interest-bearing deposits		(50	)		(1,082	)		(1,132	)		(244	)		(1,486	)		(1,730	)
Federal funds purchased & other borrowings		(341	)		(485	)		(826	)		(721	)		(847	)		(1,568	)
Federal Home Loan Bank advances		112			262			374			201			507			708
Long-term debt		(313	)		(119	)		(432	)		(363	)		(97	)		(460	)
Total borrowed funds		(542	)		(342	)		(884	)		(883	)		(437	)		(1,320	)
Total interest-bearing liabilities		(592	)		(1,424	)		(2,016	)		(1,127	)		(1,923	)		(3,050	)
Increase in net interest revenue	$	7,205		$	(838	)	$	6,367		$	11,010		$	(1,195	)	$	9,815

Provision for Credit Losses

The provision for credit losses is based on management’s evaluation of probable incurred losses in the loan portfolio and corresponding analysis of the allowance for credit losses at quarter-end.  The provision for credit losses was $900,000 and $2.70 million, respectively, for the second quarter and first six months of 2015, compared to $2.20 million and $4.70 million, respectively, for the same periods in 2014.  The amount of provision recorded in each period was the amount required such that the total allowance for loan losses reflected the appropriate balance, in the estimation of management, sufficient to cover incurred losses in the loan portfolio.  The second quarter and first six months of 2015 loan loss provisions were lower than those for the comparable periods in 2014 due to overall improvement in the portfolio credit quality.  For the three and six months ended June 30, 2015, net loan charge-offs as an annualized percentage of average outstanding loans were .08% and ..15%, respectively, compared to .38% and .38%, respectively, for the same periods in 2014.

The allowance for unfunded commitments represents probable incurred losses on unfunded loan commitments that are expected to result in outstanding loan balances.  The allowance for unfunded loan commitments was established through the provision for credit losses.

Additional discussion on credit quality and the allowance for loan losses is included in the “Asset Quality and Risk Elements” section of this report on page 56.

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Fee Revenue

Fee revenue for the three and six months ended June 30, 2015 was $17.3 million and $32.9 million, respectively, an increase of $3.12 million, or 22%, compared to the second quarter of 2014, and an increase of $6.63 million, or 25%, from the year-to-date period of 2014.  The following table presents the components of fee revenue for the second quarters and first six months of 2015 and 2014.

Table 5 - Fee Revenue                                                                        

(in thousands) 

	Three Months Ended											Six Months Ended
	June 30,					Change						June 30,						Change
	2015		2014			Amount			Percent			2015			2014			Amount			Percent
Overdraft fees	$	2,730	$	2,944		$	(214	)		(7	)	$	5,328		$	5,864		$	(536	)		(9	)
ATM and debit card fees		4,220		3,976			244			6			7,858			7,507			351			5
Other service charges and fees		1,425		1,607			(182	)		(11	)		2,804			3,054			(250	)		(8	)
Service charges and fees		8,375		8,527			(152	)		(2	)		15,990			16,425			(435	)		(3	)
Mortgage loan and related fees		3,707		1,877			1,830			97			6,462			3,231			3,231			100
Brokerage fees		1,232		1,245			(13	)		(1	)		2,783			2,422			361			15
Gains on sales of government guaranteed loans		1,494		744			750			101			2,635			744			1,891			254
Customer derivatives		533		414			119			29			896			471			425			90
Securities gains, net		13		4,435			(4,422	)					1,552			4,652			(3,100	)		(67	)
Losses from prepayment of debt		-		(4,446	)		4,446						(1,038	)		(4,446	)		3,408			(77	)
Other		1,912		1,347			565			42			3,668			2,820			848			30
Total fee revenue	$	17,266	$	14,143		$	3,123			22		$	32,948		$	26,319		$	6,629			25

Overdraft fees of $2.73 million for the second quarter of 2015 were down $214,000, or 7%, from the second quarter of 2014.  For the first six months of 2015, overdraft fees of $5.33 million were down $536,000, or 9%, from the same period in 2014. Overdraft fees continue to decline as customer utilization of our courtesy overdraft services decreases. ATM and debit card fees of $4.22 million in second quarter of 2015 and $7.86 million in the first half of 2015 increased from the comparable periods in 2014 due to volume.

Mortgage loans and related fees for the second quarter and first six months of 2015 were up $1.83 million, or 97%, and $3.23 million, or 100%, respectively, from the same periods in 2014.  The increase reflects United’s focus on growing the mortgage business by recruiting new mortgage lenders in key metropolitan markets and an increase in refinancing activity.  In the second quarter of 2015, United closed 665 loans totaling $128 million compared with 421 loans totaling $68.5 million in the second quarter of 2014.  Year-to-date mortgage production in 2015 amounted to 1,138 loans totaling $216 million, compared to 710 loans totaling $115 million for the same period in 2014. United had $69 million and $111 million, respectively, in home purchase mortgage originations in the second quarter and first six months of 2015, compared with $45.7 million and $75.9 million, respectively, for the same periods a year ago. The volume of new purchase money mortgages in the second quarter was 54% compared with 68% in the second quarter of 2014.  

Brokerage fees were approximately equal to the second quarter of 2014 and increased $361,000, or 15%, compared to the first six months of 2014.  The year-to-date increase reflects United’s continuing efforts to grow this line of business.

In the second quarter and first six months of 2015, United realized $1.49 million and $2.64 million, respectively, in gains from the sales of the guaranteed portion of SBA and USDA loans.  United has been actively growing its government guaranteed lending business with the hiring of new leadership and lenders who specialize in government guaranteed loan programs such as SBA and USDA loans.  United’s SBA/USDA lending strategy includes selling a portion of the loan production each quarter.  United began selling the guaranteed portion of loans in the second quarter of 2014.  United retains the servicing rights on the sold loans and earns a fee for servicing the loans.  In the second quarter and first six months of 2015, United sold the guaranteed portion of loans in the amount of $14.7 million and $27.7 million, respectively, at prices ranging from 105% to 119% of par.

Customer derivative fees were up $119,000 from the second quarter of 2014 and $425,000 from the first six months of 2014 due to an increase in customer demand for this product as commercial customers sought to lock in low fixed rates on their loans.

United realized net securities gains of $13,000 in the second quarter of 2015 compared with securities gains of $4.44 million in the second quarter of 2014.  For the first six months of 2015 and 2014, net securities gains totaled $1.55 million and $4.65 million, respectively.  In the first six months of 2015, United also incurred $1.04 million in charges from the prepayment of $6 million in structured repurchase agreements that paid interest at a rate of 4% and $15 million in trust preferred securities that paid interest at an average rate in excess of 11%.  The securities gains and prepayment charges in 2015 were mostly offsetting and were part of the same overall balance sheet management activities that were intended to lower the overall cost of wholesale borrowings going forward.  Management expects annual interest savings of approximately $1.9 million from the repayment of the borrowings.

53

Other fee revenue of $1.91 million for the second quarter of 2015 was up $565,000, or 42%, from the second quarter of 2014, partially due to volume driven increases in income from bank owned life insurance and merchant services.  For the first six months of 2015,  other fee revenue of $3.67 million was up $848,000, or 30%, from the same period in 2014, primarily due to an incentive payment from United’s merchant services vendor, combined with the same factors mentioned for the quarterly increase.

Operating Expenses

The following table presents the components of operating expenses for the three and six months ended June 30, 2015 and 2014.

Table 6 - Operating Expenses

(in thousands)

	Three Months Ended										Six Months Ended
	June 30,				Change						June 30,				Change
	2015		2014		Amount			Percent			2015		2014		Amount			Percent
Salaries and employee benefits	$	27,961	$	24,287	$	3,674			15		$	54,407	$	48,683	$	5,724			12
Communications and equipment		3,304		3,037		267			9			6,575		6,276		299			5
Occupancy		3,415		3,262		153			5			6,693		6,640		53			1
Advertising and public relations		1,127		1,139		(12	)		(1	)		1,877		1,765		112			6
Postage, printing and supplies		993		804		189			24			1,931		1,580		351			22
Professional fees		2,257		2,172		85			4			4,176		3,599		577			16
FDIC assessments and other regulatory charges		1,298		1,425		(127	)		(9	)		2,507		2,778		(271	)		(10	)
Amortization of intangibles		447		361		86			24			689		748		(59	)		(8	)
Merger-related changes		3,173		-		3,173			100			3,173		-		3,173			100
Other		4,445		4,045		400			10			9,453		7,513		1,940			26
Total operating expenses	$	48,420	$	40,532	$	7,888			19		$	91,481	$	79,582	$	11,899			15

Operating expenses for the second quarter of 2015 totaled $48.4 million, up $7.89 million, or 19%, from the second quarter of 2014.  The increase mostly reflects higher salaries and employee benefits expense resulting from investing in specialized lending areas and other strategic hiring and merger-related charges related to the acquisition of MoneyTree. For the six months ended June 30, 2015, operating expenses totaled $91.5 million, an increase of $11.9 million, or 15%, from the same period in 2014, primarily due to higher salaries and employee benefits expense resulting from investing in specialized lending areas and other strategic hiring, merger-related charges, charges to terminate and settle the loss sharing agreements with the FDIC related to United’s 2009 acquisition of Southern Community Bank and a loss on a fraudulent home equity line of credit transaction.

Salaries and employee benefits for the second quarter of 2015 were $28.0 million, up $3.67 million, or 15%, from the second quarter of 2014.  The increase was due to a number of factors including investments in additional staff and new teams to expand specialized lending and new talent in other key areas, additional staff resulting from the MoneyTree acquisition, higher incentives due to increased loan production and obtaining higher earnings performance targets.  For the first six months of 2015, salaries and employee benefits of $54.4 million were up $5.72 million, or 12%, from the first six months of 2014.  Headcount totaled 1,644 at June 30, 2015, up 141 from 1,503 at June 30, 2014, with 77 coming from the MoneyTree acquisition.

Professional fees for the second quarter of 2015 of $2.26 million were up $85,000, or 4%, from the second quarter of 2014.  For the six months ended June 30, 2015, professional fees of $4.18 million, were up $577,000, or 16%. The increase was due primarily to higher legal and consulting fees relating to projects that are in process.

Merger-related charges of $3.17 million related to the MoneyTree acquisition and consisted primarily of severance, conversion costs, and legal and professional fees.  

Other expense of $4.45 million for the second quarter of 2015 increased $400,000, or 10%, from the second quarter of 2014.  Year-to-date, other expense of $9.45 million increased $1.94 million, or 26%, from the first six months of 2014.  The increase from the second quarter of 2014 is due to higher lending support costs due to increased lending activity. The increase from the first six months of 2014 is mostly due to a $690,000 charge to terminate and settle the loss sharing agreements with the FDIC related to United’s 2009 acquisition of Southern Community Bank and a $420,000 loss on a fraudulent home equity line of credit transaction.  As a result of the termination of the loss sharing agreements with the FDIC, United will no longer be required to share 95% of recoveries of previously charged off loans with the FDIC.  In addition to the unusual first quarter charges, other expense in the first six months of 2015 was elevated due to higher travel and entertainment costs and lending support costs associated with the increase in lending activity.

Income Taxes

The income tax provision for the second quarter and first six months of 2015 was $11.1 million and $21.5 million, respectively, as compared with $9.63 million and $18.7 million, respectively, for the same periods in 2014. The income tax provision represents an effective tax rate of 38.4% and 37.7%, respectively, for each period of 2015 and 37.0% for each period of 2014.  At June 30, 2015, December 31, 2014 and June 30, 2014, United maintained a valuation allowance on its net deferred tax asset of $4.43 million, $4.12 million and $4.10 million, respectively.  Management assesses the valuation allowance recorded against its net deferred tax asset at each reporting period.  The determination of whether a valuation allowance for its net deferred tax asset is appropriate is subject to considerable judgment and requires an evaluation of all the positive and negative evidence.

54

United evaluated the need for a valuation allowance at June 30, 2015.  Based on the assessment of all the positive and negative evidence, management concluded that it is more likely than not that nearly all of its net deferred tax asset will be realized based upon future taxable income.  The remaining valuation allowance of $4.43 million is related to specific state income tax credits that have short carryforward periods and are expected to expire unused.

The valuation allowance could fluctuate in future periods based on the assessment of the positive and negative evidence.  Management’s conclusion at June 30, 2015 that it was more likely than not that United’s net deferred tax asset of $196 million will be realized is based upon management’s estimate of future taxable income.  Management’s estimate of future taxable income is based on internal forecasts that consider historical performance, various internal estimates and assumptions, as well as certain external data all of which management believes to be reasonable although inherently subject to significant judgment.  If actual results differ significantly from the current estimates of future taxable income, the valuation allowance may need to be increased for some or all of its net deferred tax asset.  Such an increase to the net deferred tax asset valuation allowance could have a material adverse effect on United’s financial condition and results of operations.

United is subject to income taxation in the United States and various state jurisdictions.  United’s federal and state income tax returns are filed on a consolidated basis.  Currently, no years for which United filed a federal income tax return are under examination by the IRS, and there are no state tax examinations currently in progress.  United is no longer subject to income tax examinations from state and local income tax authorities for years before 2011.  Although United is unable to determine the ultimate outcome of future examinations, United believes that the liability recorded for uncertain tax positions is appropriate.

Additional information regarding income taxes, including a reconciliation of the differences between the recorded income tax provision and the amount of income tax computed by applying the statutory federal income tax rate to income before income taxes, can be found in Note 16 to the consolidated financial statements filed with United’s Annual Report on Form 10-K for the year ended December 31, 2014.

Balance Sheet Review

Total assets at June 30, 2015, December 31, 2014 and June 30, 2014 were $8.25 billion, $7.57 billion and $7.35 billion, respectively.  Average total assets for the second quarter of 2015 were $8.02 billion, up from $7.42 billion in the second quarter of 2014.

55

The following table presents a summary of the loan portfolio.

Table 7 - Loans Outstanding
(in thousands)
	June 30,			December 31,			June 30,
	2015			2014			2014
By Loan Type
Owner occupied commercial real estate	$	1,265,783		$	1,163,480		$	1,163,327
Income producing commercial real estate		688,768			598,537			598,318
Commercial & industrial		792,791			710,256			554,089
Commercial construction		237,820			196,030			159,755
Total commercial		2,985,162			2,668,303			2,475,489
Residential mortgage		935,646			865,789			860,525
Home equity lines of credit		490,753			465,872			451,435
Residential construction		298,920			298,627			301,737
Consumer installment		105,931			104,899			105,160
Indirect auto		357,105			268,629			215,939
Total loans	$	5,173,517		$	4,672,119		$	4,410,285
As a percentage of total loans:
Owner occupied commercial real estate		24	%		25	%		26	%
Income producing commercial real estate		13			13			14
Commercial & industrial		15			15			13
Commercial construction		5			4			4
Total commercial		57			57			57
Residential mortgage		18			19			19
Home equity lines of credit		10			10			10
Residential construction		6			6			7
Consumer installment		2			2			2
Indirect auto		7			6			5
Total		100	%		100	%		100	%
By Geographic Location
North Georgia	$	1,154,558		$	1,163,479		$	1,174,998
Atlanta MSA		1,316,832			1,281,753			1,305,401
North Carolina		533,384			552,766			555,273
Coastal Georgia		499,079			455,709			426,393
Gainesville MSA		257,274			257,449			257,021
East Tennessee		524,602			280,312			269,564
South Carolina / Specialized Lending		530,683			412,022			205,696
Other (Indirect Auto)		357,105			268,629			215,939
Total loans	$	5,173,517		$	4,672,119		$	4,410,285

Substantially all of United’s loans are to customers located in the immediate market areas of its community banks in Georgia, North Carolina, South Carolina and Tennessee, including customers who have a seasonal residence in United’s market areas.  More than 76% of the loans are secured by real estate.  In 2014, loan growth began to return to pre-crisis levels reflecting United’s specialized lending initiatives which resulted in increases in commercial lending.  Consumer installment loans also increased due to purchases of indirect auto loans.  Total loans averaged $5.02 billion in the second quarter of 2015, compared with $4.38 billion in the second quarter of 2014, an increase of 15%.  At June 30, 2015, total loans were $5.17 billion, an increase of $763 million, or 17%, from June 30, 2014. 

Asset Quality and Risk Elements 

United manages asset quality and controls credit risk through review and oversight of the loan portfolio as well as adherence to policies designed to promote sound underwriting and loan monitoring practices.  United’s credit administration function is responsible for monitoring asset quality and Board of Directors approved portfolio limits, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures among all of the community banks.  Additional information on the credit administration function is included in Item 1 under the heading Loan Review and Nonperforming Assets in United’s Annual Report on Form 10-K for the year ended December 31, 2014.

56

United classifies performing loans as “substandard” when there is a well-defined weakness or weaknesses that jeopardizes the repayment by the borrower and there is a distinct possibility that United could sustain some loss if the deficiency is not corrected.

United’s home equity lines generally require the payment of interest only for a set period after origination.  After this initial period, the outstanding balance begins amortizing and requires the payment of both principal and interest.  At June 30, 2015, December 31, 2014 and June 30, 2014, the funded portion of home equity lines totaled $491 million, $466 million and $451 million, respectively.  Approximately 3% of the home equity lines at June 30, 2015 were amortizing.  Of the $491 million in balances outstanding at June 30, 2015, $308 million, or 63%, were secured by first liens.  At June 30, 2015, 61% of the total available home equity lines were drawn upon.

United monitors the performance of its home equity loans and lines secured by second liens similar to other consumer loans and utilizes assumptions specific to these loans in determining the necessary allowance.  United also receives notification when the first lien holder is in the process of foreclosure and upon that notification, United obtains valuations to determine if any additional charge-offs or reserves are warranted.

The table below presents performing substandard loans for the last five quarters.

Table 8 - Performing Substandard Loans
(in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2015		2015		2014		2014		2014
By Category
Owner occupied commercial real estate	$	39,618	$	43,887	$	46,401	$	49,857	$	48,222
Income producing commercial real estate		18,775		19,881		20,560		22,215		24,633
Commercial & industrial		6,394		6,704		7,863		7,498		5,647
Commercial construction		3,255		3,528		3,566		3,847		4,406
Total commercial		68,042		74,000		78,390		83,417		82,908
Residential mortgage		30,579		30,382		31,831		42,981		41,856
Home equity		5,591		5,734		5,296		8,073		7,562
Residential construction		9,686		9,504		10,920		11,755		12,872
Consumer installment		842		1,301		1,382		2,062		1,776
Indirect auto		961		796		574		684		562
Total	$	115,701	$	121,717	$	128,393	$	148,972	$	147,536
By Market
North Georgia	$	51,938	$	52,652	$	55,821	$	66,780	$	66,709
Atlanta MSA		32,003		32,281		31,596		34,699		32,975
North Carolina		15,514		13,871		16,479		18,465		19,619
Coastal Georgia		5,886		14,355		15,642		17,368		17,427
Gainesville MSA		897		1,009		1,109		2,016		2,832
East Tennessee		7,688		5,936		5,933		7,643		7,412
South Carolina / Specialized Lending		814		817		1,239		1,317		-
Indirect auto		961		796		574		684		562
Total loans	$	115,701	$	121,717	$	128,393	$	148,972	$	147,536

At June 30, 2015, performing substandard loans totaled $116 million and decreased $6.02 million from the prior quarter-end, and decreased $31.8 million from a year ago.  Performing substandard loans have been on a downward trend as credit conditions have continued to improve and problem credits are resolved.

Reviews of substandard performing and non-performing loans, TDRs, past due loans and larger credits are conducted on a regular basis and are designed to identify risk migration and potential charges to the allowance for loan losses.  These reviews are presented by the responsible lending officers and specific action plans are discussed along with the financial strength of borrowers, the value of the applicable collateral, past loan loss experience, anticipated loan losses, changes in risk profile, the effect of prevailing economic conditions on the borrower and other factors specific to the borrower and its industry.  In addition to United’s internal loan review, United also uses external loan review to ensure the independence of the loan review process.

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The following table presents a summary of the changes in the allowance for credit losses for the three and six months ended June 30, 2015 and 2014.

Table 9 - Allowance for Credit Losses
(in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Allowance for loan losses at beginning of period	$	70,007		$	75,223		$	71,619		$	76,762
Charge-offs:
Owner occupied commercial real estate		363			918			731			1,284
Income producing commercial real estate		74			632			322			837
Commercial & industrial		162			1,012			631			1,975
Commercial construction		147			131			169			132
Residential mortgage		1,109			2,800			1,687			4,381
Home equity lines of credit		348			624			421			1,627
Residential construction		499			1,946			1,639			2,251
Consumer installment		349			455			675			1,131
Indirect auto		130			89			258			166
Total loans charged-off		3,181			8,607			6,533			13,784
Recoveries:
Owner occupied commercial real estate		78			2,753			89			2,843
Income producing commercial real estate		350			197			357			197
Commercial & industrial		789			350			917			891
Commercial construction		51			-			51			-
Residential mortgage		322			292			484			357
Home equity lines of credit		26			158			40			168
Residential construction		392			275			471			369
Consumer installment		187			391			563			718
Indirect auto		8			16			21			27
Total recoveries		2,203			4,432			2,993			5,570
Net charge-offs		978			4,175			3,540			8,214
Provision for loan losses		1,100			2,200			2,050			4,700
Allowance for loan losses at end of period	$	70,129		$	73,248		$	70,129		$	73,248
Allowance for unfunded commitments at beginning of period	$	2,780		$	2,165		$	1,930		$	2,165
Provision for losses on unfunded commitments		(200	)		-			650			-
Allowance for unfunded commitments at end of period		2,580			2,165			2,580			2,165
Allowance for credit losses	$	72,709		$	75,413		$	72,709		$	75,413
Total loans:
At period-end	$	5,173,517		$	4,410,285		$	5,173,517		$	4,410,285
Average		5,017,306			4,358,101			4,872,112			4,346,974
Allowance for loan losses as a percentage of period-end loans		1.36	%		1.66	%		1.36	%		1.66	%
As a percentage of average loans (annualized):
Net charge-offs		.08			.38			.15			.38
Provision for loan losses		.09			.20			.08			.22

The provision for credit losses charged to earnings is based upon management’s judgment of the amount necessary to maintain the allowance at a level appropriate to absorb probable incurred losses in the loan portfolio at the balance sheet date.  The amount each quarter is dependent upon many factors, including growth and changes in the composition of the loan portfolio, net charge-offs, delinquencies, management’s assessment of loan portfolio quality, the value of collateral, and other macro-economic factors and trends.  The evaluation of these factors is performed quarterly by management through an analysis of the appropriateness of the allowance for loan losses.  The decreases in the provision and the declining level of the allowance for loan losses compared to the previous periods reflects stabilizing trends in substandard and nonperforming loans as well as charge-off levels.  Further, the declining balance of the allowance for loan losses over the last several quarters reflects an overall improving trend in the credit quality of the loan portfolio.  A general improvement in economic conditions in United’s market also contributed to the lower level of provision and allowance for loan losses.

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The allowance for credit losses, which includes a portion related to unfunded commitments, totaled $72.7 million at June 30, 2015, compared with $73.5 million at December 31, 2014, and $75.4 million at June 30, 2014.  At June 30, 2015, the allowance for loan losses was $70.1 million, or 1.36% of loans, compared with $71.6 million, or 1.53% of total loans, at December 31, 2014 and $73.2 million, or 1.66% of loans, at June 30, 2014. 

In accordance with the accounting guidance for business combinations, there was no allowance for loan losses brought forward on loans acquired from MoneyTree, as credit deterioration was included in the determination of fair value at acquisition date. At June 30, 2015, United recorded no allowance for loan losses on loans acquired from FNB as there was no evidence of credit deterioration beyond that which was incorporated into the determination of fair value at acquisition date. At June 30, 2015, for acquired loans that had no evidence of credit deterioration at the time of acquisition, the remaining unaccreted fair value discount was $2.60 million.

Management believes that the allowance for credit losses at June 30, 2015 reflects the probable incurred losses in the loan portfolio and unfunded loan commitments.  This assessment involves uncertainty and judgment; therefore, the adequacy of the allowance for credit losses cannot be determined with certainty and may be subject to change in future periods.  The amount of any changes could be significant if management’s assessment of loan quality or collateral values change substantially with respect to one or more loan relationships or portfolios. In addition, bank regulatory authorities, as part of their periodic examination of the Bank, may require adjustments to the provision for credit losses in future periods if, in their opinion, the results of their review warrant such additions.  See the “Critical Accounting Policies” section for additional information on the allowance for loan losses. 

Nonperforming Assets

The table below summarizes nonperforming assets. 

Table 10 - Nonperforming Assets
(in thousands)
	June 30,			December 31,			June 30,
	2015			2014			2014
Nonperforming loans	$	18,805		$	17,881		$	20,724
Foreclosed properties (OREO)		2,356			1,726			2,969
Total nonperforming assets	$	21,161		$	19,607		$	23,693
Nonperforming loans as a percentage of total loans		.36	%		.38	%		.47	%
Nonperforming assets as a percentage of total loans and OREO		.41			.42			.54
Nonperforming assets as a percentage of total assets		.26			.26			.32

At June 30, 2015, nonperforming loans were $18.8 million compared to $17.9 million at December 31, 2014 and $20.7 million at June 30, 2014.  Nonperforming assets, which include nonperforming loans and foreclosed real estate, totaled $21.2 million at June 30, 2015 compared with $19.6 million at December 31, 2014 and $23.7 million at June 30, 2014.  United sold $895,000 of foreclosed properties and added $1.07 million in new foreclosures during the second quarter of 2015.

United’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection.  When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue.  Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal.

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The following table summarizes nonperforming assets by category and market. 

Table 11 - Nonperforming Assets by Quarter
(in thousands)
	June 30, 2015									December 31, 2014									June 30, 2014
	Nonaccrual			Foreclosed			Total			Nonaccrual			Foreclosed			Total			Nonaccrual			Foreclosed			Total
	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
BY CATEGORY
Owner occupied commercial real estate	$	4,878		$	360		$	5,238		$	4,133		$	355		$	4,488		$	2,975		$	653		$	3,628
Income producing commercial real estate		883			-			883			717			-			717			1,032			242			1,274
Commercial & industrial		1,389			-			1,389			1,571			-			1,571			1,102			-			1,102
Commercial construction		59			382			441			83			15			98			95			-			95
Total commercial		7,209			742			7,951			6,504			370			6,874			5,204			895			6,099
Residential mortgage		8,599			1,373			9,972			8,196			1,183			9,379			10,201			1,426			11,627
Home equity		940			54			994			695			40			735			510			128			638
Residential construction		1,358			187			1,545			2,006			133			2,139			4,248			520			4,768
Consumer installment		131			-			131			134			-			134			171			-			171
Indirect auto		568			-			568			346			-			346			390			-			390
Total NPAs	$	18,805		$	2,356		$	21,161		$	17,881		$	1,726		$	19,607		$	20,724		$	2,969		$	23,693
Balance as a % of Unpaid Principal		64.9	%		46.6	%		62.2	%		69.9	%		54.1	%		68.1	%		66.5	%		50.4	%		63.9	%
BY MARKET
North Georgia	$	6,157		$	657		$	6,814		$	5,669		$	711		$	6,380		$	8,216		$	1,392		$	9,608
Atlanta MSA		2,361			135			2,496			1,837			372			2,209			3,883			510			4,393
North Carolina		4,746			690			5,436			5,221			234			5,455			5,314			615			5,929
Coastal Georgia		659			-			659			799			105			904			782			80			862
Gainesville MSA		864			22			886			1,310			81			1,391			921			49			970
East Tennessee		1,885			852			2,737			1,414			201			1,615			1,218			323			1,541
South Carolina / Specialized Lending		1,565			-			1,565			1,285			22			1,307			-			-			-
Indirect auto		568			-			568			346			-			346			390			-			390
Total NPAs	$	18,805		$	2,356		$	21,161		$	17,881		$	1,726		$	19,607		$	20,724		$	2,969		$	23,693

At June 30, 2015, December 31, 2014, and June 30, 2014, United had $89.9 million, $85.1 million and $91.0 million, respectively, in loans with terms that have been modified in TDRs.  Included therein were $3.83 million, $3.78 million and $6.23 million, respectively, of TDRs that were not performing in accordance with their modified terms and were included in nonperforming loans.  The remaining TDRs with an aggregate balance of $86.1 million, $81.3 million and $84.8 million, respectively, were performing according to their modified terms and are therefore not considered to be nonperforming assets.

At June 30, 2015, December 31, 2014 and June 30, 2014, there were $106 million, $106 million and $107 million, respectively, of loans classified as impaired under the definition outlined in the Accounting Standards Codification, including TDRs which are by definition considered impaired.  Included in impaired loans at June 30, 2015, December 31, 2014 and June 30, 2014 was $28.7 million, $25.5 million and $35.0 million, respectively, that did not require specific reserves or had previously been charged down to net realizable value.  The balance of impaired loans at June 30, 2015, December 31, 2014 and June 30, 2014 of $77.7 million, $81.0 million and $72.5 million, respectively, had specific reserves that totaled $6.69 million, $9.88 million and $9.02 million, respectively.  The average recorded investment in impaired loans for the second quarters of 2015 and 2014 was $107 million and $108 million, respectively.  For the six months ended June 30, 2015 and 2014, the average recorded investment in impaired loans was $108 million and $108 million, respectively.  For the three and six months ended June 30, 2015, United recognized $1.24 million and $2.47 million, respectively, in interest revenue on impaired loans compared to $1.28 million and $2.50 million, respectively, for the same periods of the prior year.  United’s policy is to discontinue the recognition of interest revenue for loans classified as impaired under ASC 310-10-35, Receivables, when a loan meets the criteria for nonaccrual status.

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The table below summarizes activity in nonperforming assets. 

Table 12 - Activity in Nonperforming Assets
(in thousands)
	Second Quarter 2015									Second Quarter 2014
	Nonaccrual			Foreclosed			Total			Nonaccrual			Foreclosed			Total
	Loans			Properties			NPAs			Loans			Properties			NPAs
Beginning Balance	$	19,015		$	1,158		$	20,173		$	25,250		$	5,594		$	30,844
Acquisitions		-			962			962			-			-			-
Loans placed on non-accrual		6,552			-			6,552			9,529			-			9,529
Payments received		(3,839	)		-			(3,839	)		(4,027	)		-			(4,027	)
Loan charge-offs		(1,854	)		-			(1,854	)		(8,341	)		-			(8,341	)
Foreclosures		(1,069	)		1,069			-			(1,687	)		1,687			-
Property sales		-			(895	)		(895	)		-			(4,430	)		(4,430	)
Write downs		-			(9	)		(9	)		-			(305	)		(305	)
Net gains on sales		-			71			71			-			423			423
Ending Balance	$	18,805		$	2,356		$	21,161		$	20,724		$	2,969		$	23,693
	First Six Months 2015									First Six Months 2014
	Nonaccrual			Foreclosed			Total			Nonaccrual			Foreclosed			Total
	Loans			Properties			NPAs			Loans			Properties			NPAs
Beginning Balance	$	17,881		$	1,726		$	19,607		$	26,819		$	4,221		$	31,040
Acquisitions		-			962			962			-			-			-
Loans placed on non-accrual		12,496			-			12,496			18,832			-			18,832
Payments received		(5,352	)		-			(5,352	)		(5,693	)		-			(5,693	)
Loan charge-offs		(4,692	)		-			(4,692	)		(13,180	)		-			(13,180	)
Foreclosures		(1,528	)		1,528			-			(6,054	)		6,054			-
Note / property sales		-			(2,003	)		(2,003	)		-			(7,668	)		(7,668	)
Write downs		-			(175	)		(175	)		-			(582	)		(582	)
Net gains on sales		-			318			318			-			944			944
Ending Balance	$	18,805		$	2,356		$	21,161		$	20,724		$	2,969		$	23,693

Foreclosed property is initially recorded at fair value, less estimated costs to sell. If the fair value, less estimated costs to sell at the time of foreclosure, is less than the loan balance, the deficiency is charged against the allowance for loan losses. If the lesser of fair value, less estimated costs to sell or the listed selling price, less the costs to sell, of the foreclosed property decreases during the holding period, a valuation allowance is established with a charge to foreclosed property expense. When the foreclosed property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property. Financed sales of foreclosed property are accounted for in accordance with ASC 360-20, Real Estate Sales. For the second quarter of 2015, United transferred $1.07 million of loans into foreclosed property through foreclosures. During the same period, proceeds from sales of foreclosed property were $895,000, which includes $268,000 in sales that were financed by United.

Investment Securities

The composition of the investment securities portfolio reflects United’s investment strategy of maintaining an appropriate level of liquidity while providing a relatively stable source of revenue. The investment securities portfolio also provides a balance to interest rate risk and credit risk in other categories of the balance sheet while providing a vehicle for the investment of available funds, furnishing liquidity, and supplying securities to pledge as required collateral for certain deposits and borrowings, including repurchase agreements. Total investment securities at June 30, 2015 increased $132 million from a year ago.

At June 30, 2015, December 31, 2014 and June 30, 2014, United had securities held-to-maturity with a carrying amount of $380 million, $415 million, and $449 million, respectively, and securities available-for-sale totaling $1.94 billion, $1.78 billion, and $1.74 billion, respectively. At June 30, 2015, December 31, 2014 and June 30, 2014, the securities portfolio represented approximately 28%, 29% and 30%, respectively, of total assets.

The investment securities portfolio primarily consists of U.S. Treasury securities, U.S. government agency securities, U.S. government sponsored agency mortgage-backed securities, non-agency mortgage-backed securities, corporate securities, municipal securities and asset-backed securities. Mortgage-backed securities rely on the underlying pools of mortgage loans to provide a cash flow of principal and interest. The actual maturities of these securities will usually differ from contractual maturities because loans underlying the securities can prepay. Decreases in interest rates will generally cause an acceleration of prepayment levels. In a declining or prolonged low interest rate environment, United may not be able to reinvest the proceeds from these prepayments in assets that have comparable yields. In a rising rate environment, the opposite occurs - prepayments tend to slow and the weighted average life extends. This is referred to as extension risk which can lead to lower levels of liquidity due to the delay of cash receipts and can result in the holding of a below market yielding asset for a longer period of time. United’s asset-backed securities include securities that are backed by student loans and collateralized loan obligations.

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Management evaluates its securities portfolio each quarter to determine if any security is considered to be other than temporarily impaired. In making this evaluation, management considers its ability and intent to hold securities to recover current market losses. Losses on United’s fixed income securities at June 30, 2015 primarily reflect the effect of changes in interest rates. United did not recognize any other than temporary impairment losses on its investment securities during the second quarter or first six months of 2015 or 2014.

At June 30, 2015, December 31, 2014 and June 30, 2014, 29%, 31% and 31%, respectively, of the securities portfolio was invested in floating-rate securities or fixed-rate securities that were swapped to floating rates in order to manage exposure to rising interest rates.

Goodwill and Core Deposit Intangibles

Goodwill represents the premium paid for acquired companies above the fair value of the assets acquired and liabilities assumed, including separately identifiable intangible assets.

United’s core deposit intangibles, representing the value of United’s acquired deposit relationships, are amortizing intangible assets that are required to be tested for impairment only when events or circumstances indicate that impairment may exist. There were no events or circumstances that led management to believe that any impairment exists in United’s goodwill or other intangible assets.

Deposits

United has initiated several programs to improve core earnings by growing customer transaction deposit accounts and lowering overall pricing on deposit accounts to improve its net interest margin and increase net interest revenue. The programs were successful in increasing core transaction deposit accounts and allowing for the reduction of more costly time deposit balances as United’s funding needs decreased due to lower loan demand. United’s high level of service, as evidenced by its strong customer satisfaction scores, has been instrumental in attracting and retaining deposits.

Total customer deposits, excluding brokered deposits, as of June 30, 2015 were $6.28 billion, an increase of $539 million from June 30, 2014, of which $351 million was attributable to the MoneyTree acquisition. Total core deposits (demand, NOW, money market and savings deposits, excluding public funds deposits) of $5.81 billion at June 30, 2015 increased $628 million, or 12%, from a year ago, due to the acquisition of MoneyTree, as well as the success of core deposit programs and general industry trends.

Total time deposits, excluding brokered deposits, as of June 30, 2015 were $1.26 billion, down $102 million from June 30, 2014. Time deposits less than $100,000 totaled $792 million at June 30, 2015, a decrease of $13.0 million, or 2%, from a year ago. Time deposits of $100,000 and greater totaled $465 million as of June 30, 2015, a decrease of $89.0 million, or 16%, from June 30, 2014. United continued to offer low rates on certificates of deposit, allowing balances to decline as United’s funding needs were met by growth in lower cost transaction account deposits and other sources.

Brokered deposits totaled $530 million as of June 30, 2015, an increase of $106 million from a year ago. United has actively added long-term deposits to diversify our funding base. These are typically swapped to LIBOR minus a spread, which achieves low cost funding within our interest rate risk parameters.

Wholesale Funding

The Bank is a shareholder in the Federal Home Loan Bank of Atlanta (“FHLB”). Through this affiliation, FHLB secured advances totaled $385 million, $270 million and $175 million, respectively, as of June 30, 2015, December 31, 2014 and June 30, 2014. United anticipates continued use of this short and long-term source of funds. Additional information regarding FHLB advances is provided in Note 12 to the consolidated financial statements included in United’s Annual Report on Form 10-K for the year ended December 31, 2014.

At December 31, 2014 and June 30, 2014, United had $6.0 million and $11.3 million, respectively, in structured repurchase agreements outstanding. United repaid the remaining $6.0 million outstanding balance in the first quarter of 2015, incurring a charge of $540,000. United takes advantage of these additional sources of liquidity when rates are favorable compared to other forms of short-term borrowings, such as FHLB advances and brokered deposits.

Contractual Obligations

There have not been any material changes to United’s contractual obligations since December 31, 2014.

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Off-Balance Sheet Arrangements 

United is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of customers. These financial instruments include commitments to extend credit, letters of credit and financial guarantees. 

A commitment to extend credit is an agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Letters of credit and financial guarantees are conditional commitments issued to guarantee a customer’s performance to a third party and have essentially the same credit risk as extending loan facilities to customers. Those commitments are primarily issued to local businesses. 

The exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, letters of credit and financial guarantees is represented by the contractual amount of these instruments. United uses the same credit underwriting procedures for making commitments, letters of credit and financial guarantees, as it uses for underwriting on-balance sheet instruments. United evaluates each customer’s creditworthiness on a case-by-case basis and the amount of the collateral, if deemed necessary, is based on the credit evaluation. Collateral held varies, but may include unimproved and improved real estate, certificates of deposit, personal property or other acceptable collateral. 

All of these instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The total amount of these instruments does not necessarily represent future cash requirements because a significant portion of these instruments expire without being used. United is not involved in off-balance sheet contractual relationships, other than those disclosed in this report, that could result in liquidity needs or other commitments, or that could significantly affect earnings. See Note 15 to the consolidated financial statements for additional information on off-balance sheet arrangements. 

Interest Rate Sensitivity Management

The absolute level and volatility of interest rates can have a significant effect on United’s profitability. The objective of interest rate risk management is to identify and manage the sensitivity of net interest revenue to changing interest rates, in order to achieve United’s overall financial goals. Based on economic conditions, asset quality and various other considerations, management establishes tolerance ranges for interest rate sensitivity and manages within these ranges.

United’s net interest revenue, and the fair value of its financial instruments, are influenced by changes in the level of interest rates. United limits its exposure to fluctuations in interest rates through policies developed by the Asset/Liability Management Committee (“ALCO”) and approved by the Board of Directors. ALCO meets periodically and has responsibility for formulating and recommending asset/liability management policies to the Board of Directors, formulating and implementing strategies to improve balance sheet positioning and/or earnings, and reviewing United’s interest rate sensitivity.

One of the tools management uses to estimate and manage the sensitivity of net interest revenue to changes in interest rates is an asset/liability simulation model. Resulting estimates are based upon a number of assumptions for each scenario, including loan and deposit re-pricing characteristics and the rate of prepayments. ALCO periodically reviews the assumptions for accuracy based on historical data and future expectations; however, actual net interest revenue may differ from model results. The primary objective of the simulation model is to measure the potential change in net interest revenue over time using multiple interest rate scenarios. The base scenario assumes rates remain flat and is the scenario to which all others are compared in order to measure the change in net interest revenue. Policy limits are based on immediate rate shock scenarios, as well as gradually rising and falling rate scenarios, which are all compared to the base scenario. Another commonly analyzed scenario is a most-likely scenario that projects the expected change in rates based on the slope of the forward yield curve. Other scenarios analyzed may include delayed rate shocks, yield curve steepening or flattening, or other variations in rate movements. While the primary policy scenarios focus on a twelve month time frame, longer time horizons are also modeled.

United’s policy is based on the 12-month impact on net interest revenue of interest rate shocks and ramps that increase or decrease from 100 to 400 basis points from the base scenario. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the ramp scenarios, rates change by 25 basis points per month. United’s policy limits the projected change in net interest revenue over the first 12 months to a 5% decrease for each 100 basis point change in the increasing and decreasing rate ramp and shock scenarios. Historically low rates on June 30, 2015 and 2014 made use of the down scenarios irrelevant. The following table presents United’s interest sensitivity position at June 30, 2015 and 2014.

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Table 13 - Interest Sensitivity
	Increase (Decrease) in Net Interest Revenue from Base Scenario at June 30,
	2015				2014
Change in Rates	Shock		Ramp		Shock		Ramp
200 basis point increase	1.6	%	1.6	%	2.1	%	2.3	%

Interest rate sensitivity is a function of the re-pricing characteristics of the portfolio of assets and liabilities. These re-pricing characteristics are the time frames within which the interest-earning assets and interest-bearing liabilities are subject to change in interest rates either at replacement, re-pricing or maturity during the life of the instruments. Interest rate sensitivity management focuses on the maturity structure of assets and liabilities and their re-pricing characteristics during periods of changes in market interest rates. Effective interest rate sensitivity management seeks to ensure that both assets and liabilities respond to changes in interest rates on a net basis within an acceptable timeframe, thereby minimizing the adverse effect of interest rate changes on net interest revenue.

United may have some discretion in the extent and timing of deposit re-pricing depending upon the competitive pressures in the markets in which it operates. Changes in the mix of earning assets or supporting liabilities can either increase or decrease the net interest margin without affecting interest rate sensitivity. The interest rate spread between an asset and its supporting liability can vary significantly even when the timing of re-pricing for both the asset and the liability remains the same, due to the two instruments re-pricing according to different indices. This is commonly referred to as basis risk.

In order to manage interest rate sensitivity, United periodically enters into off-balance sheet contracts that are considered derivative financial instruments. Derivative financial instruments can be a cost-effective and capital-effective means of modifying the re-pricing characteristics of on-balance sheet assets and liabilities. These contracts generally consist of interest rate swaps under which United pays a variable rate (or fixed rate, as the case may be) and receives a fixed rate (or variable rate, as the case may be).

United’s derivative financial instruments that are designated as accounting hedges are classified as either cash flow or fair value hedges. The change in fair value of cash flow hedges is recognized in other comprehensive income. Fair value hedges recognize in earnings both the effect of the change in the fair value of the derivative financial instrument and the offsetting effect of the change in fair value of the hedged asset or liability associated with the particular risk of that asset or liability being hedged. United has other derivative financial instruments that are not designated as accounting hedges but are used for interest rate risk management purposes and as an effective economic hedge. Derivative financial instruments that are not accounted for as an accounting hedge are recorded at fair value, with subsequent changes in value recorded through earnings.

In addition to derivative instruments, United uses a variety of balance sheet instruments to manage interest rate risk such as Investment Portfolio holdings, wholesale funding, and bank-issued deposits.

From time to time, United will terminate derivative positions when conditions change and the position is no longer necessary to manage United’s overall sensitivity to changes in interest rates. In those situations where the terminated contract was in an effective hedging relationship at the time of termination and the hedging relationship is expected to remain effective throughout the original term of the contract, the resulting gain or loss is amortized over the remaining life of the original contract. For swap contracts, the gain or loss is amortized over the remaining original contract term using the straight line method of amortization. United expects that $1.83 million will be reclassified as an increase to interest expense from other comprehensive income over the next twelve months related to these terminated cash flow hedges.

United’s policy requires all non-customer facing derivative financial instruments be used only for asset/liability management through the hedging of specific transactions or positions, and not for trading or speculative purposes. Management believes that the risk associated with using derivative financial instruments to mitigate interest rate risk sensitivity is minimal and should not have any material effect on our financial condition or results of operations. In order to mitigate potential credit risk, from time to time United may require the counterparties to derivative contracts to pledge securities as collateral to cover the net exposure.

Liquidity Management

The objective of liquidity management is to ensure that sufficient funding is available, at a reasonable cost, to meet ongoing operational cash needs and to take advantage of revenue producing opportunities as they arise. While the desired level of liquidity will vary depending upon a variety of factors, it is the primary goal of United to maintain a sufficient level of liquidity in all expected economic environments. To assist in determining the adequacy of its liquidity, United performs a variety of liquidity stress tests including idiosyncratic, systemic and combined scenarios for both moderate and severe events. Liquidity is defined as the ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities. Liquidity management involves maintaining the ability to meet the daily cash flow requirements of customers, both depositors and borrowers.

64

United maintains an unencumbered liquid asset reserve to ensure its ability to meet its obligations. The size of the reserve is determined through severe liquidity stress testing and covers a 30 day period.

The asset portion of the balance sheet provides liquidity primarily through loan principal repayments and the maturities and sales of securities, as well as the ability to use these as collateral for borrowings on a secured basis. We also maintain excess funds in short-term interest-bearing assets that provide additional liquidity. Mortgage loans held for sale totaled $22.0 million at June 30, 2015, and typically turn over every 45 days as the closed loans are sold to investors in the secondary market.

The liability section of the balance sheet provides liquidity through interest-bearing and noninterest-bearing deposit accounts. Federal funds purchased, Federal Reserve short-term borrowings, FHLB advances and securities sold under agreements to repurchase are additional sources of liquidity and represent United’s incremental borrowing capacity. These sources of liquidity are generally short-term in nature and are used as necessary to fund asset growth and meet other short-term liquidity needs.

At June 30, 2015, United had cash and cash equivalent balances of $205 million and had sufficient qualifying collateral to increase FHLB advances by $1.03 billion and Federal Reserve discount window borrowing capacity of $818 million. United also has the ability to raise substantial funds through brokered deposits. In addition to these wholesale sources, United has the ability to attract retail deposits by competing more aggressively on pricing.

As disclosed in United’s consolidated statement of cash flows, net cash provided by operating activities was $56.5 million for the six months ended June 30, 2015. The net income of $35.5 million for the six month period included the deferred income tax expense of $18.5 million, and non-cash expenses for the following: provision for credit losses of $2.70 million, depreciation, amortization and accretion of $10.9 million and stock-based compensation expense of $2.18 million. These sources of cash from operating activities were offset by the following uses of cash: decrease in accrued expenses and other liabilities of $3.0 million and increase in mortgage loans held for sale of $6.92 million. Net cash used in investing activities of $230 million consisted primarily of a $265 million net increase in loans and purchases of investment securities totaling $312 million. These uses of cash were partially offset by $35.5 million in proceeds from maturities and calls of investment securities held-to-maturity, $137 million in proceeds from the sale of investment securities available-for-sale, $135 million in proceeds from maturities and calls of investment securities available-for-sale and $44.6 million in net cash received in the MoneyTree acquisition. Net cash provided by financing activities of $186 million consisted primarily of a net increase in deposits of $112 million and a net increase in FHLB advances of $92.9 million partially offset by $16.0 million in payments to redeem trust preferred securities and $6.19 million in dividends to common shareholders. In the opinion of management, United’s liquidity position at June 30, 2015, was sufficient to meet its expected cash flow requirements.

In addition, because United’s holding company is a separate entity and apart from the Bank, it must provide for its own liquidity. United’s holding company is responsible for the payment of dividends declared for its common and preferred shareholders, and interest and principal on any outstanding debt or trust preferred securities. United’s holding company currently has internal capital resources to meet these obligations. Substantially all of United’s holding company’s liquidity is obtained from subsidiary service fees and dividends from the Bank, which are limited by applicable law.

Capital Resources and Dividends

Shareholders’ equity at June 30, 2015 was $827 million, an increase of $87.7 million from December 31, 2014 due to the issuance of stock for the acquisition of MoneyTree, year-to-date earnings less common dividends declared, and an increase in the value of available for sale securities. Accumulated other comprehensive loss, which includes unrealized gains and losses on securities available-for-sale, the unrealized gains and losses on derivatives qualifying as cash flow hedges and unamortized prior service cost and actuarial gains and losses on United’s modified retirement plan, is excluded in the calculation of regulatory capital adequacy ratios.

The Board of Governors of the Federal Reserve System and the FDIC have approved final rules implementing the Basel III Capital Rules establishing a new comprehensive capital framework applicable to all depository institutions, bank holding companies with total consolidated assets of $500 million of more and all savings and loan holding companies except for those that are substantially engaged in insurance underwriting or commercial activities. Under the Basel III Capital Rules, minimum requirements have increased for both the quantity and quality of capital held by United. The Basel III Capital Rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5% and, for prompt corrective action purposes, a “well capitalized” ratio of 6.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the Basel III Capital Rules. The Basel III Capital Rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets.

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The Basel III Capital Rules became effective for United on January 1, 2015 subject to a phase in period. The following table shows United’s capital ratios, as calculated under applicable regulatory guidelines, at June 30, 2015, December 31, 2014 and June 30, 2014. As of June 30, 2015, United’s capital levels remained characterized as “well-capitalized” under the Basel III Capital Rules based on the rules in effect at the time. 

Table 14 - Capital Ratios
(dollars in thousands)
	June 30, 2015
	Basel III Guidelines				United			United
			Well		Community			Community
	Minimum		Capitalized		Banks, Inc.			Bank
Risk-based ratios:
Common equity tier 1 capital	4.5	%	6.5	%		11.86	%		11.99	%
Tier I capital	6.0		8.0			11.86			11.99
Total capital	8.0		10.0			13.07			13.24
Tier 1 leverage ratio	4.0		5.0			9.09			9.09
Common equity tier 1 capital					$	713,490		$	690,533
Tier I capital						713,490			690,533
Total capital						786,199			762,538
Risk-weighted assets						6,014,899			5,759,700
Average total assets						7,848,168			7,592,902

	Basel I Guidelines				United Community Banks, Inc. (Consolidated)						United Community Bank
			Well		December 31,			June 30,			December 31,			June 30,
	Minimum		Capitalized		2014			2014			2014			2014
Risk-based ratios:
Tier I capital	4.0	%	6.0	%		12.05	%		11.79	%		12.84	%		13.42	%
Total capital	8.0		10.0			13.30			13.05			14.09			14.68
Leverage ratio	3.0		5.0			8.69			8.29			9.25			9.41
Tier I capital					$	642,663		$	598,673		$	683,332		$	680,172
Total capital						709,408			662,277			749,927			743,665
Risk-weighted assets						5,332,822			5,076,522			5,320,615			5,067,512
Average total assets						7,396,450			7,225,333			7,385,048			7,225,922

The Basel III guidelines for risk-based capital became effective January 1, 2015. The capital ratios shown above as of June 30, 2015 were calculated under the Basel III guidelines. Capital ratios for all other periods were calculated using the existing Basel I guidelines that were in effect at the time. 

United’s common stock trades on the Nasdaq Global Select Market under the symbol “UCBI”. Below is a quarterly schedule of high, low and closing stock prices and average daily volume for 2015 and 2014.

Table 15 - Stock Price Information
	2015							2014
							Avg Daily							Avg Daily
	High		Low		Close		Volume	High		Low		Close		Volume
First quarter	$	19.53	$	16.48	$	18.88	234,966	$	20.28	$	15.74	$	19.41	494,205
Second quarter		21.23		17.91		20.87	328,887		19.87		14.86		16.37	308,486
Third quarter									18.42		15.42		16.46	331,109
Fourth quarter									19.50		15.16		18.94	262,598

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Effect of Inflation and Changing Prices

A bank’s asset and liability structure is substantially different from that of an industrial firm in that primarily all assets and liabilities of a bank are monetary in nature with relatively little investment in fixed assets or inventories. Inflation has an important effect on the growth of total assets and the resulting need to increase equity capital at higher than normal rates in order to maintain an appropriate equity to assets ratio.

United’s management believes the effect of inflation on financial results depends on United's ability to react to changes in interest rates, and by such reaction, reduce the inflationary effect on performance. United has an asset/liability management program to manage interest rate sensitivity. In addition, periodic reviews of banking services and products are conducted to adjust pricing in view of current and expected costs. 

Item 3.          Quantitative and Qualitative Disclosure About Market Risk

There have been no material changes in United’s quantitative and qualitative disclosures about market risk as of June 30, 2015 from that presented in the Annual Report on Form 10-K for the year ended December 31, 2014. The interest rate sensitivity position at June 30, 2015 is included in management’s discussion and analysis on page 63 of this report. 

Item 4.          Controls and Procedures

United’s management, including the Chief Executive Officer and Chief Financial Officer, supervised and participated in an evaluation of United’s disclosure controls and procedures as of June 30, 2015. Based on, and as of the date of that evaluation, United’s Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures were effective in accumulating and communicating information to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures of that information under the SEC’s rules and forms and that the disclosure controls and procedures are designed to ensure that the information required to be disclosed in reports that are filed or submitted by United under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There were no significant changes in the internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

On May 1, 2015, United completed the acquisition of MoneyTree Corporation (“MoneyTree”) and its wholly-owned bank subsidiary, First National Bank (“FNB”). As permitted by the guidelines established by the SEC, management excluded it from the assessment of the effectiveness of internal control over financial reporting. The acquired assets and total revenue represented 5% of United’s total consolidated assets and 2% of consolidated total revenue, respectively, as of and for the period end covered by this report.

Part II.          Other Information

Item 1.           Legal Proceedings

In the ordinary course of operations, United and the Bank are defendants in various legal proceedings. Additionally, in the ordinary course of business, United and the Bank are subject to regulatory examinations and investigations. Based on our current knowledge and advice of counsel, in the opinion of management there is no such pending or threatened legal matter which would result in a material adverse change in the consolidated financial condition or results of operations of United.

Item 1A.        Risk Factors

There have been no material changes from the risk factors previously disclosed in United’s Annual Report on Form 10-K for the year ended December 31, 2014.

67

Item 2.          Unregistered Sales of Equity Securities and Use of Proceeds – None

Item 3.          Defaults upon Senior Securities – None

Item 4.          Mine Safety Disclosures – None

Item 5.          Other Information – None

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Item 6.          Exhibits

Exhibit No.		Description
	2.1	Agreement and Plan of Merger, dated April 22, 2015, by and between United Community Banks, Inc. and Palmetto Bancshares, Inc. (incorporated herein by reference to Exhibit 2.1 to United’s Current Report on Form 8-K, filed with the SEC on April 22, 2015).
	31.1	Certification by Jimmy C. Tallent, Chairman and Chief Executive Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2	Certification by Rex S. Schuette, Executive Vice President and Chief Financial Officer of United Community Banks, Inc., as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	32	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

69

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. 

UNITED COMMUNITY BANKS, INC.

/s/ Jimmy C. Tallent                                         

Jimmy C. Tallent

Chairman and Chief Executive Officer

(Principal Executive Officer)

/s/ Rex S. Schuette                                             

Rex S. Schuette

Executive Vice President and

Chief Financial Officer

(Principal Financial Officer)

/s/ Alan H. Kumler                                             

Alan H. Kumler

Senior Vice President and 

Chief Accounting Officer 

(Principal Accounting Officer)

Date:  August 7, 2015

70

EX-31.1

Exhibit 31.1

I, Jimmy C. Tallent, certify that: 

1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have: 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

By:	/s/ Jimmy C. Tallent
	Jimmy C. Tallent Chairman and Chief Executive Officer  of the Registrant
Date:  August 7, 2015

EX-31.2

Exhibit 31.2

I, Rex S. Schuette, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Rex S. Schuette
	Rex S. Schuette Executive Vice President and Chief Financial Officer  of the Registrant
Date:  August 7, 2015

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 

In connection with the Quarterly Report of United Community Banks, Inc. (“United”) on Form 10-Q for the period ending June 30, 2015 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jimmy C. Tallent, Chairman and Chief Executive Officer of United, and I, Rex S. Schuette, Executive Vice President and Chief Financial Officer of United, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of United.  

By:	/s/ Jimmy C. Tallent
	Jimmy C. Tallent
	Chairman and Chief Executive Officer
By:	/s/ Rex S. Schuette
	Rex S. Schuette
	Executive Vice President and
	Chief Financial Officer
Date:  August 7, 2015

XML

Acquisition (Parentheticals) (Details) - MoneyTree - FNB $ in Thousands	May. 01, 2015 USD ($)
Accounted for pursuant to ASC 310-30:
Business Acquisition [Line Items]
Contractually required principal and interest	$ 15,152
Non-accretable difference	3,677
Cash flows expected to be collected	11,475
Certain Loans Acquired in Transfer, Accretable Yield	1,029
Fair value	10,446
Excluded from ASC 310-30:
Business Acquisition [Line Items]
Fair value	233,906
Gross contractual amounts receivable	258,931
Estimate of contractual cash flows not expected to be collected	$ 1,231

XML

Loans and Allowance for Loan Losses - Recorded investment in loans by portfolio segment and the balance of the allowance for loan losses (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	$ 6,686		$ 9,882	$ 9,017
Allowance for Loan Losses,Collectively evaluated for impairment	66,023		63,667	66,396
Allowance for Loan Losses, Ending balance	72,709	$ 72,787	73,549	75,413	$ 77,388	$ 78,927
Loans Outstanding, Ending Balance	5,173,517		4,672,119	4,410,285
Loans Receivable
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	6,686		9,882	9,017
Allowance for Loan Losses,Collectively evaluated for impairment	63,443		61,737	64,231
Allowance for Loan Losses, Ending balance	70,129	70,007	71,619	73,248	75,223	76,762
Loans Outstanding, Individually evaluated for impairment	106,480		106,472	107,496
Loans Outstanding, Collectively evaluated for impairment	5,056,942		4,565,647	4,302,789
Loans Outstanding, Purchased with deteriorated credit quality	10,095
Loans Outstanding, Ending Balance	5,173,517		4,672,119	4,410,285
Loans Receivable | Owner occupied commercial real estate
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	1,592		2,737	2,483
Allowance for Loan Losses,Collectively evaluated for impairment	14,747		13,304	15,321
Allowance for Loan Losses, Ending balance	16,339	14,952	16,041	17,804	20,292	17,164
Loans Outstanding, Individually evaluated for impairment	37,547		34,654	31,952
Loans Outstanding, Collectively evaluated for impairment	1,225,779		1,128,826	1,131,375
Loans Outstanding, Purchased with deteriorated credit quality	2,457
Loans Outstanding, Ending Balance	1,265,783		1,163,480	1,163,327
Loans Receivable | Income producing commercial real estate
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	782		1,917	1,404
Allowance for Loan Losses,Collectively evaluated for impairment	7,418		8,379	10,357
Allowance for Loan Losses, Ending balance	8,200	9,655	10,296	11,761	10,926	7,174
Loans Outstanding, Individually evaluated for impairment	21,926		24,484	26,045
Loans Outstanding, Collectively evaluated for impairment	661,988		574,053	572,273
Loans Outstanding, Purchased with deteriorated credit quality	4,854
Loans Outstanding, Ending Balance	688,768		598,537	598,318
Loans Receivable | Commercial & industrial
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	137		15	399
Allowance for Loan Losses,Collectively evaluated for impairment	4,591		3,240	3,486
Allowance for Loan Losses, Ending balance	4,728	3,442	3,255	3,885	4,247	6,527
Loans Outstanding, Individually evaluated for impairment	5,023		3,977	3,641
Loans Outstanding, Collectively evaluated for impairment	787,247		706,279	550,448
Loans Outstanding, Purchased with deteriorated credit quality	521
Loans Outstanding, Ending Balance	792,791		710,256	554,089
Loans Receivable | Commercial construction
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	530		729	412
Allowance for Loan Losses,Collectively evaluated for impairment	4,365		4,018	3,655
Allowance for Loan Losses, Ending balance	4,895	5,335	4,747	4,067	3,977	3,669
Loans Outstanding, Individually evaluated for impairment	12,123		12,321	11,214
Loans Outstanding, Collectively evaluated for impairment	223,631		183,709	148,541
Loans Outstanding, Purchased with deteriorated credit quality	2,066
Loans Outstanding, Ending Balance	237,820		196,030	159,755
Loans Receivable | Residential mortgage
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	3,107		3,227	3,117
Allowance for Loan Losses,Collectively evaluated for impairment	15,945		17,084	13,646
Allowance for Loan Losses, Ending balance	19,052	20,138	20,311	16,763	15,967	15,446
Loans Outstanding, Individually evaluated for impairment	20,538		18,775	20,455
Loans Outstanding, Collectively evaluated for impairment	914,981		847,014	840,070
Loans Outstanding, Purchased with deteriorated credit quality	127
Loans Outstanding, Ending Balance	935,646		865,789	860,525
Loans Receivable | Home equity lines of credit
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	26		47	115
Allowance for Loan Losses,Collectively evaluated for impairment	5,453		4,527	6,223
Allowance for Loan Losses, Ending balance	5,479	4,321	4,574	6,338	6,120	5,528
Loans Outstanding, Individually evaluated for impairment	551		478	540
Loans Outstanding, Collectively evaluated for impairment	490,132		465,394	450,895
Loans Outstanding, Purchased with deteriorated credit quality	70
Loans Outstanding, Ending Balance	490,753		465,872	451,435
Loans Receivable | Residential construction
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	506		1,192	1,054
Allowance for Loan Losses,Collectively evaluated for impairment	8,831		9,411	10,154
Allowance for Loan Losses, Ending balance	9,337	10,210	10,603	11,208	12,181	12,532
Loans Outstanding, Individually evaluated for impairment	8,631		11,604	13,320
Loans Outstanding, Collectively evaluated for impairment	$ 290,289		287,023	288,417
Loans Outstanding, Purchased with deteriorated credit quality
Loans Outstanding, Ending Balance	$ 298,920		298,627	301,737
Loans Receivable | Consumer installment
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment	6		18	33
Allowance for Loan Losses,Collectively evaluated for impairment	682		713	566
Allowance for Loan Losses, Ending balance	688	713	731	599	717	1,353
Loans Outstanding, Individually evaluated for impairment	141		179	329
Loans Outstanding, Collectively evaluated for impairment	$ 105,790		104,720	104,831
Loans Outstanding, Purchased with deteriorated credit quality
Loans Outstanding, Ending Balance	$ 105,931		$ 104,899	$ 105,160
Loans Receivable | Indirect auto
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment
Allowance for Loan Losses,Collectively evaluated for impairment	$ 1,411		$ 1,061	$ 823
Allowance for Loan Losses, Ending balance	1,411	1,241	$ 1,061	$ 823	796	1,126
Loans Outstanding, Individually evaluated for impairment
Loans Outstanding, Collectively evaluated for impairment	$ 357,105		$ 268,629	$ 215,939
Loans Outstanding, Purchased with deteriorated credit quality
Loans Outstanding, Ending Balance	$ 357,105		$ 268,629	$ 215,939
Loans Receivable | Allowance for unfunded commitments
Financing Receivable, Allowance For Credit Losses [Line Items]
Allowance for Loan Losses, Individually evaluated for impairment
Allowance for Loan Losses,Collectively evaluated for impairment	$ 2,580		$ 1,930	$ 2,165
Allowance for Loan Losses, Ending balance	$ 2,580	$ 2,780	$ 1,930	$ 2,165	$ 2,165	$ 2,165

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Securities - Summary of securities sales activity (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investment Securities [Abstract]
Proceeds from sales	$ 67,350	$ 236,911	$ 136,817	$ 390,227
Gross gains on sales	$ 13	5,374	$ 1,552	5,784
Gross losses on sales		(939)		(1,132)
Net gains on sales of securities	$ 13	4,435	$ 1,552	4,652
Income tax expense attributable to sales	$ 5	$ 1,725	$ 603	$ 1,817

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Derivatives and Hedging Activities - Derivatives not designated as hedging instruments under ASC 815 (Details 1) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, assets at fair value	$ 20,758	$ 20,599	$ 20,915
Interest rate derivative instruments not designated as hedging instruments, liabilities at fair value	27,519	25,830	26,165
Derivative assets | Customer swap positions
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, assets at fair value	$ 3,456	3,433	2,572
Derivative assets | Dealer offsets to customer swap positions
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, assets at fair value		128	333
Derivative assets | Bifurcated embedded derivatives
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, assets at fair value	$ 11,531	12,262	12,369
Derivative assets | Offsetting positions for de-designated cash flow hedges
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, assets at fair value	5,771	4,776	5,641
Derivative liabilities | Customer swap positions
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, liabilities at fair value	$ 3,485	129	333
Derivative liabilities | Dealer offsets to customer swap positions
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, liabilities at fair value		3,456	2,592
Derivative liabilities | Dealer offsets to bifurcated embedded derivatives
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, liabilities at fair value	$ 18,261	17,467	17,599
Derivative liabilities | De-designated cash flow hedges
Derivatives, Fair Value [Line Items]
Interest rate derivative instruments not designated as hedging instruments, liabilities at fair value	$ 5,773	$ 4,778	$ 5,641

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Loans and Allowance for Loan Losses - Loans individually evaluated for impairment by class of loans (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance	$ 13,600
Allowance for loan losses, Individually evaluated for impairment	6,686	$ 9,882	$ 9,017
Loans Receivable
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	31,361	28,922	38,656
Recorded Investment, With no related allowance recorded	28,746	25,488	35,038
Unpaid Principal Balance, With an allowance recorded	81,081	83,768	76,319
Recorded Investment, With allowance recorded	77,734	80,984	72,458
Unpaid Principal Balance	112,442	112,690	114,975
Recorded Investment	106,480	106,472	107,496
Allowance for loan losses allocated with allowance	6,686	9,882	9,017
Allowance for loan losses, Individually evaluated for impairment	6,686	9,882	9,017
Loans Receivable | Owner occupied commercial real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	14,138	12,025	14,445
Recorded Investment, With no related allowance recorded	12,939	11,325	12,985
Unpaid Principal Balance, With an allowance recorded	26,301	24,728	20,287
Recorded Investment, With allowance recorded	24,608	23,329	18,967
Allowance for loan losses allocated with allowance	1,592	2,737	2,483
Allowance for loan losses, Individually evaluated for impairment	1,592	2,737	2,483
Loans Receivable | Income producing commercial real estate
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	9,696	8,311	12,755
Recorded Investment, With no related allowance recorded	9,553	8,311	11,808
Unpaid Principal Balance, With an allowance recorded	12,460	16,352	14,706
Recorded Investment, With allowance recorded	12,373	16,173	14,237
Allowance for loan losses allocated with allowance	782	1,917	1,404
Allowance for loan losses, Individually evaluated for impairment	782	1,917	1,404
Loans Receivable | Commercial & industrial
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	2,785	1,679	1,736
Recorded Investment, With no related allowance recorded	1,977	1,042	1,710
Unpaid Principal Balance, With an allowance recorded	3,055	2,936	1,931
Recorded Investment, With allowance recorded	3,046	2,935	1,931
Allowance for loan losses allocated with allowance	137	15	399
Allowance for loan losses, Individually evaluated for impairment	$ 137	15	399
Loans Receivable | Commercial construction
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded			195
Recorded Investment, With no related allowance recorded			195
Unpaid Principal Balance, With an allowance recorded	$ 12,203	12,401	11,194
Recorded Investment, With allowance recorded	12,123	12,321	11,019
Allowance for loan losses allocated with allowance	530	729	412
Allowance for loan losses, Individually evaluated for impairment	530	729	412
Loans Receivable | Commercial
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	26,619	22,015	29,131
Recorded Investment, With no related allowance recorded	24,469	20,678	26,698
Unpaid Principal Balance, With an allowance recorded	54,019	56,417	48,118
Recorded Investment, With allowance recorded	52,150	54,758	46,154
Allowance for loan losses allocated with allowance	3,041	5,398	4,698
Loans Receivable | Residential mortgage
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	2,395	2,569	3,357
Recorded Investment, With no related allowance recorded	1,930	1,472	2,849
Unpaid Principal Balance, With an allowance recorded	19,045	17,732	18,077
Recorded Investment, With allowance recorded	18,608	17,303	17,606
Allowance for loan losses allocated with allowance	3,107	3,227	3,117
Allowance for loan losses, Individually evaluated for impairment	$ 3,107	3,227	$ 3,117
Loans Receivable | Home equity lines of credit
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded
Recorded Investment, With no related allowance recorded
Unpaid Principal Balance, With an allowance recorded	$ 563	478	$ 540
Recorded Investment, With allowance recorded	551	478	540
Allowance for loan losses allocated with allowance	26	47	115
Allowance for loan losses, Individually evaluated for impairment	26	47	115
Loans Receivable | Residential construction
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded	2,347	4,338	6,168
Recorded Investment, With no related allowance recorded	2,347	3,338	5,491
Unpaid Principal Balance, With an allowance recorded	7,291	8,962	9,255
Recorded Investment, With allowance recorded	6,284	8,266	7,829
Allowance for loan losses allocated with allowance	506	1,192	1,054
Allowance for loan losses, Individually evaluated for impairment	$ 506	1,192	$ 1,054
Loans Receivable | Consumer installment
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded
Recorded Investment, With no related allowance recorded
Unpaid Principal Balance, With an allowance recorded	$ 163	179	$ 329
Recorded Investment, With allowance recorded	141	179	329
Allowance for loan losses allocated with allowance	6	18	33
Allowance for loan losses, Individually evaluated for impairment	$ 6	$ 18	$ 33
Loans Receivable | Indirect auto
Loans individually evaluated for impairment by class of loans
Unpaid Principal Balance, With no related allowance recorded
Recorded Investment, With no related allowance recorded
Unpaid Principal Balance, With an allowance recorded
Recorded Investment, With allowance recorded
Allowance for loan losses allocated with allowance
Allowance for loan losses, Individually evaluated for impairment

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Common and Preferred Stock Issued / Common Stock Issuable (Detail Textual 1) - May. 01, 2015 - MoneyTree - $ / shares	Total
Common And Preferred Stock Issued And Common Stock Issuable [Line Items]
Liquidation preference redemption price per share	100.00%
Minimum redemption percentage of number of originally issued shares	25.00%
Redemption percentage of then outstanding shares	100.00%
Redemption percentage of number of originally issued shares	25.00%
Non-Cumulative Perpetual Preferred Stock, Series H
Common And Preferred Stock Issued And Common Stock Issuable [Line Items]
Liquidation preference amount	$ 1,000
Current dividend rate	1.00%
Dividend rate increase to rate per annum	9.00%

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Securities - Cost basis, unrealized gains and losses, and fair value of securities available for sale (Details 2) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Investment securities available for sale:
Amortized Cost		$ 1,931,484	$ 1,772,535	$ 1,728,348
Gross Unrealized Gains		21,303	20,955	23,333
Gross Unrealized Losses		10,468	10,756	10,413
Available-for-Sale, Fair Value		1,942,319	1,782,734	1,741,268
U.S. Treasuries
Investment securities available for sale:
Amortized Cost		127,962	105,540	$ 15,579
Gross Unrealized Gains		360	235
Gross Unrealized Losses		421	66	$ 71
Available-for-Sale, Fair Value		127,901	105,709	15,508
U.S. Government agencies
Investment securities available for sale:
Amortized Cost		110,710	$ 36,474
Gross Unrealized Gains		126
Gross Unrealized Losses		525	$ 175
Available-for-Sale, Fair Value		110,311	36,299
State and political subdivisions
Investment securities available for sale:
Amortized Cost		30,489	19,748	21,080
Gross Unrealized Gains		416	504	773
Gross Unrealized Losses		141	19	38
Available-for-Sale, Fair Value		30,764	20,233	21,815
Mortgage-backed securities
Investment securities available for sale:
Amortized Cost	[1]	989,636	988,012	1,068,593
Gross Unrealized Gains	[1]	14,852	16,273	17,470
Gross Unrealized Losses	[1]	6,372	7,465	8,623
Available-for-Sale, Fair Value	[1]	998,116	996,820	1,077,440
Corporate bonds
Investment securities available for sale:
Amortized Cost		208,114	165,018	175,975
Gross Unrealized Gains		1,611	1,686	1,426
Gross Unrealized Losses		2,701	1,076	1,430
Available-for-Sale, Fair Value		207,024	165,628	175,971
Asset-backed securities
Investment securities available for sale:
Amortized Cost		462,702	455,626	444,910
Gross Unrealized Gains		3,938	2,257	3,664
Gross Unrealized Losses		308	1,955	251
Available-for-Sale, Fair Value		466,332	455,928	448,323
Other
Investment securities available for sale:
Amortized Cost		$ 1,871	$ 2,117	$ 2,211
Gross Unrealized Gains
Gross Unrealized Losses
Available-for-Sale, Fair Value		$ 1,871	$ 2,117	$ 2,211

[1] All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivatives and Hedging Activities [Abstract]

Schedule of derivative financial instruments on consolidated balance sheet

Derivatives designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2014
Cash flow hedge of money market deposits	Derivative assets	$	-	$	-	$	1,109
Fair value hedge of corporate bonds	Derivative assets		970		-		-
		$	970	$	-	$	1,109
Cash flow hedge of money market deposits	Derivative liabilities	$	-	$	350	$	523
Fair value hedge of brokered CD’s	Derivative liabilities		4,855		5,817		9,857
		$	4,855	$	6,167	$	10,380

Derivatives not designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location		June 30, 2015		December 31, 2014		June 30, 2014
Customer swap positions	Derivative assets	$	3,456	$	3,433	$	2,572
Dealer offsets to customer swap positions	Derivative assets		-		128		333
Bifurcated embedded derivatives	Derivative assets		11,531		12,262		12,369
Offsetting positions for de-designated cash flow hedges	Derivative assets		5,771		4,776		5,641
		$	20,758	$	20,599	$	20,915
Customer swap positions	Derivative liabilities	$	3,485	$	129	$	333
Dealer offsets to customer swap positions	Derivative liabilities		-		3,456		2,592
Dealer offsets to bifurcated embedded derivatives	Derivative liabilities		18,261		17,467		17,599
De-designated cash flow hedges	Derivative liabilities		5,773		4,778		5,641
		$	27,519	$	25,830	$	26,165

Schedule of effect of fair value hedging derivative financial instruments on the consolidated statement of operations

Derivatives in Fair Value Hedging Relationships (in thousands). 

	Location of Gain (Loss) Recognized in Income on	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
	Derivative		2015			2014			2015			2014
Three Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(3,145	)	$	4,262		$	3,287		$	(4,382	)
Fair value hedges of corporate bonds	Interest revenue		1,315			(783	)		(1,250	)		667
		$	(1,830	)	$	3,479		$	2,037		$	(3,715	)
Six Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(775	)	$	10,115		$	882		$	(10,416	)
Fair value hedges of corporate bonds	Interest revenue		970			(2,487	)		(907	)		2,163
		$	195		$	7,628		$	(25	)	$	(8,253	)

Schedule of effect of cash flow hedging derivative financial instruments on other comprehensive income

Derivatives in Cash Flow Hedging Relationships (in thousands). 

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
	2015			2014			Location	2015			2014			Location	2015			2014
Three Months Ended June 30,
Interest rate swaps	$	-		$	(3,547	)	Interest expense	$	(455	)	$	(573	)	Interest expense	$	-		$	(50	)
Six Months Ended June 30,
Interest rate swaps	$	(471	)	$	(6,379	)	Interest expense	$	(880	)	$	(670	)	Interest expense	$	(7	)	$	(85	)

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Income Taxes (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense	$ 11,124	$ 9,627	$ 21,517	$ 18,665
Income tax effective tax rate	38.40%	37.00%	37.70%	37.00%
Valuation allowance on deferred tax assets	$ 4,430	$ 4,100	$ 4,430	$ 4,100	$ 4,120
Valuation allowance related to specific state income tax credits			4,430
Net deferred tax asset realized based upon future taxable income			196,000
Unrecognized income tax benefits	$ 4,380	$ 4,690	$ 4,380	$ 4,690	$ 4,200

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Derivatives and Hedging Activities (Detail Textuals)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract	Mar. 31, 2015 USD ($) Contract	Dec. 31, 2014 USD ($) Contract
Derivative Instruments, Gain (Loss) [Line Items]
Recognized net gain (loss) related to ineffectiveness of hedging relationships	$ 207,000	$ 236,000	$ 170,000	$ 625,000
Net reduction of interest expense/revenue	1,130,000	1,220,000	2,260,000	2,430,000
Credit risk
Derivative Instruments, Gain (Loss) [Line Items]
Collateral pledged toward derivatives	35,500,000		35,500,000
Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Number of derivative contracts outstanding | Contract					1
Total notional amount designated as cash flow hedges					$ 175,000,000
Cash flow hedging | Offsetting positions for de-designated cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Total notional amount designated as cash flow hedges		$ 500,000,000		$ 500,000,000		$ 500,000,000
Cash flow hedging | Interest Rate Risk
Derivative Instruments, Gain (Loss) [Line Items]
Number of derivative contracts outstanding | Contract		2		2		1
Recognized net gain (loss) related to ineffectiveness of hedging relationships		$ 50,000	7,000	$ 85,000
Increase to deposit interest expense over next twelve months			1,830,000
Total notional amount designated as cash flow hedges		275,000,000		275,000,000		$ 175,000,000
Fair value hedging of interest rate risk | Corporate Bonds
Derivative Instruments, Gain (Loss) [Line Items]
Net reduction of interest expense/revenue	$ 146,000	$ 425,000	$ 220,000	$ 955,000
Fair value hedging of interest rate risk | Interest Rate Risk
Derivative Instruments, Gain (Loss) [Line Items]
Number of derivative contracts outstanding | Contract	15	16	15	16		1
Total notional amount designated as cash flow hedges	$ 184,000,000	$ 199,000,000	$ 184,000,000	$ 199,000,000		$ 30,000,000

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Goodwill and Other Intangible Assets (Details 2) $ in Thousands	Jun. 30, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 1,063
2016	1,919
2017	1,115
2018	695
2019	479
Thereafter	392
Total	$ 5,663

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Loans and Allowance for Loan Losses - Recorded investment in nonaccrual loans by loan class (Details 6) - Loans Receivable - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	$ 18,805	$ 17,881	$ 20,724
Owner occupied commercial real estate
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	4,878	4,133	2,975
Income producing commercial real estate
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	883	717	1,032
Commercial & industrial
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	1,389	1,571	1,102
Commercial construction
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	59	83	95
Commercial
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	7,209	6,504	5,204
Residential mortgage
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	8,599	8,196	10,201
Home equity lines of credit
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	940	695	510
Residential construction
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	1,358	2,006	4,248
Consumer installment
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	131	134	171
Indirect auto
Recorded investment in nonaccrual loans by loan class
Nonaccrual Loans	$ 568	$ 346	$ 390

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Stock-Based Compensation (Detail textuals) - USD ($) $ / shares in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional award granted under plan	404,000
Vesting period	4 years
Maximum exercisable period	10 years
Unrecognized compensation cost of non-vested stock options and restricted stock unit awards	$ 8,950,000
Recognition period for unrecognized compensation cost related	2 years 6 months 4 days
Aggregate grant date fair value	$ 1,950,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 19,000	$ 2,000
Estimated forfeiture rate of award	3.00%
Restricted Stock and Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 2,110,000	2,180,000
Total intrinsic value	$ 16.0
Other operating expense for restricted stock units granted	$ 47,000	$ 50,000

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Commitments and Contingencies - Contractual amount of off-balance sheet instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Commitments to extend credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments	$ 1,047,970	$ 878,160	$ 797,068
Letters of credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments	$ 21,726	$ 19,861	$ 20,682

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Assets and Liabilities Measured at Fair Value - Assets and liabilities measured at fair value (Details 1) - Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015
Derivative Asset
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 8,117		$ 12,262
Additions
Sales and settlements
Amounts included in earnings - fair value adjustments	$ 3,414		$ (731)
Balance at end of period	11,531		11,531
Derivative Liability
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 14,529		$ 18,979
Additions
Sales and settlements
Amounts included in earnings - fair value adjustments	$ 3,732		$ (718)
Balance at end of period	18,261		18,261
Servicing rights for government guaranteed loans
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	2,717		2,551
Additions	$ 442		$ 632
Sales and settlements
Amounts included in earnings - fair value adjustments	$ (41)		$ (65)
Balance at end of period	3,118		3,118
Securities Available-for-Sale
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 750	$ 350	$ 750
Additions
Sales and settlements		$ (50)
Amounts included in earnings - fair value adjustments
Balance at end of period	$ 750	$ 300	$ 750

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Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Finite And Indefinite Lived Intangible Assets [Line Items]
Total intangibles subject to amortization, net	$ 5,663
Goodwill	14,527	$ 1,509	$ 1,509
Total goodwill and other intangible assets, net	20,190		3,641	$ 2,731
Core deposit intangible
Finite And Indefinite Lived Intangible Assets [Line Items]
Gross	36,872		32,652	32,652
Less: accumulated amortization	(31,209)		(30,520)	(29,921)
Total intangibles subject to amortization, net	$ 5,663		$ 2,132	$ 2,731

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Common and Preferred Stock Issued / Common Stock Issuable (Detail Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Common And Preferred Stock Issued And Common Stock Issuable [Table]
Shares issued in connection with DRIP	997
Shares purchased by United's 401(k) retirement plan	14,171
Amount of shares issued	$ 245,000
Discount offered to employees under United has an Employee Stock Purchase Program (ESPP) to purchase shares of common stock	5.00%
Increased percentage of discount on purchases made through ESPP	10.00%
Number of stock issued through ESPP	6,664	5,128
Common stock issuable shares under deferred compensation plan	413,014	314,039

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Derivatives and Hedging Activities - Derivatives in Fair Value Hedging Relationships (Details 2) - Fair value hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Effect of fair value hedging derivative financial instruments on the consolidated statement of operations
Amount of Gain (Loss) Recognized in Income on Derivative	$ (1,830)	$ 3,479	$ 195	$ 7,628
Amount of Gain (Loss) Recognized in Income on Hedged Item	2,037	(3,715)	(25)	(8,253)
Interest expense | Brokered CD's
Effect of fair value hedging derivative financial instruments on the consolidated statement of operations
Amount of Gain (Loss) Recognized in Income on Derivative	(3,145)	4,262	(775)	10,115
Amount of Gain (Loss) Recognized in Income on Hedged Item	3,287	(4,382)	882	(10,416)
Interest revenue | Corporate Bonds
Effect of fair value hedging derivative financial instruments on the consolidated statement of operations
Amount of Gain (Loss) Recognized in Income on Derivative	1,315	(783)	970	(2,487)
Amount of Gain (Loss) Recognized in Income on Hedged Item	$ (1,250)	$ 667	$ (907)	$ 2,163

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 16 – Goodwill and Other Intangible Assets

The carrying amount of goodwill and other intangible assets is summarized below (in thousands): 

	June 30, 2015			December 31, 2014			June 30, 2014
Core deposit intangible	$	36,872		$	32,652		$	32,652
Less: accumulated amortization		(31,209	)		(30,520	)		(29,921	)
Total intangibles subject to amortization, net		5,663			2,132			2,731
Goodwill		14,527			1,509			-
Total goodwill and other intangible assets, net	$	20,190		$	3,641		$	2,731

The following is a summary of changes in the carrying amounts of goodwill (in thousands):

	For the three months ended June 30,							For the six months ended June 30,
2015	Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses		Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses
Balance, beginning of period	$	307,099	$	(305,590	)	$	1,509	$	307,099	$	(305,590	)	$	1,509
Acquisition of MoneyTree		13,018		-			13,018		13,018		-			13,018
Balance, end of period	$	320,117	$	(305,590	)	$	14,527	$	320,117	$	(305,590	)	$	14,527

The amortization expense for intangibles subject to amortization for the three and six months ended June 30, 2015 was $447,000 and $689,000, respectively, which was recognized in operating expenses. The amortization expense for intangibles subject to amortization for the three and six months ended June 30, 2014 was $362,000 and $749,000, respectively. The estimated aggregate amortization expense for future periods is as follows (in thousands):

Year
Remainder of 2015	$	1,063
2016		1,919
2017		1,115
2018		695
2019		479
Thereafter		392
Total	$	5,663

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Securities (Detail Textuals) $ in Millions	Jun. 30, 2015 USD ($) Security	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)
Investment Securities [Abstract]
Number of available for sale securities in unrealized loss position	142
Number of held to maturity securities in unrealized loss position	23
Carrying value of secure public deposits, FHLB advances and other secured borrowings | $	$ 1,250	$ 1,510	$ 1,370

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Acquisition (Details Textuals 1)	1 Months Ended		6 Months Ended
	Apr. 22, 2015 USD ($) Branch Corridor Country $ / shares	Jun. 26, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jul. 31, 2015 $ / shares	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Cash payment for acquisition			$ (44,594,000)	$ 31,243,000
Goodwill			$ 14,527,000			$ 1,509,000	$ 1,509,000
Business Carolina Inc
Business Acquisition [Line Items]
Cash payment for acquisition		$ 31,300,000
Loans		24,800,000
Accrued interest		83,000
Servicing rights		2,130,000
Premises and equipment		2,600,000
Goodwill		1,510,000
Gross contractual amount of loans receivable		$ 28,000,000
Palmetto Bancshares Inc | Palmetto Bank
Business Acquisition [Line Items]
Total assets	$ 1,160,000,000
Loans, net	824,000,000
Deposits	$ 977,000,000
Number of branches | Branch	25
Number of countries | Country	9
Number of interstate corridor | Corridor	85
Business acquisition share price | $ / shares	$ 19.25
Share exchange per share | $ / shares	$ 0.97
Percentage of consideration exchange for cash	30.00%
Percentage of consideration common stock	70.00%
Number of average closing days	10 days
Share price | $ / shares					$ 21.21
Aggregate deal value	$ 262,000,000

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Stock-Based Compensation - Restricted stock activity (Details 1) - Jun. 30, 2015 - Restricted Stock and Restricted Stock Unit - $ / shares	Total
Shares
Outstanding at December 31, 2014	829,201
Granted	129,507
Exercised	(140,102)
Cancelled	(53,545)
Outstanding at June 30, 2015	765,061
Vested at June 30, 2015	1,170
Weighted-Average Grant-Date Fair Value
Outstanding at December 31, 2013	$ 14.76
Granted	18.23
Exercised	14.36
Cancelled	15.26
Outstanding at June 30, 2015	15.39
Vested at June 30, 2015	$ 10.69

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule goodwill and other intangible assets

	June 30, 2015			December 31, 2014			June 30, 2014
Core deposit intangible	$	36,872		$	32,652		$	32,652
Less: accumulated amortization		(31,209	)		(30,520	)		(29,921	)
Total intangibles subject to amortization, net		5,663			2,132			2,731
Goodwill		14,527			1,509			-
Total goodwill and other intangible assets, net	$	20,190		$	3,641		$	2,731

Schedule of changes in the carrying amounts of goodwill

	For the three months ended June 30,							For the six months ended June 30,
2015	Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses		Goodwill		Accumulated Impairment Losses			Goodwill, net of Accumulated Impairment Losses
Balance, beginning of period	$	307,099	$	(305,590	)	$	1,509	$	307,099	$	(305,590	)	$	1,509
Acquisition of MoneyTree		13,018		-			13,018		13,018		-			13,018
Balance, end of period	$	320,117	$	(305,590	)	$	14,527	$	320,117	$	(305,590	)	$	14,527

Schedule of amortization expense for future periods

Year
Remainder of 2015	$	1,063
2016		1,919
2017		1,115
2018		695
2019		479
Thereafter		392
Total	$	5,663

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Loans and Allowance for Loan Losses - Changes in the value of the accretable yield for acquired loans (Details 1) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period
Additions due to acquisitions	$ 1,029	$ 1,029
Accretion	(83)	(83)
Balance at end of period	$ 946	$ 946

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Earnings Per Share - Computation of basic and diluted earnings per share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Computation of basic and diluted loss per share
Net income available to common shareholders	$ 17,796	$ 16,357	$ 35,466	$ 31,318
Weighted average shares outstanding:
Basic	62,549	60,712	61,730	60,386
Effect of dilutive securities
Stock options	4	2	4	2
Diluted	62,553	60,714	61,734	60,388
Net income per common share:
Basic (in dollars per share)	$ 0.28	$ 0.27	$ 0.57	$ 0.52
Diluted (in dollars per share)	$ 0.28	$ 0.27	$ 0.57	$ 0.52

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Loans and Allowance for Loan Losses - Risk category of loans by class of loans (Details 10) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Risk category of loans by class of loans
Total loans	$ 5,173,517	$ 4,672,119	$ 4,410,285
Loans Receivable
Risk category of loans by class of loans
Total loans	5,173,517	4,672,119	4,410,285
Loans Receivable | Pass
Risk category of loans by class of loans
Total loans	4,990,037	4,466,798	4,167,232
Loans Receivable | Watch
Risk category of loans by class of loans
Total loans	48,974	59,047	74,793
Loans Receivable | Substandard Performing
Risk category of loans by class of loans
Total loans	115,701	128,393	147,536
Loans Receivable | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 18,805	$ 17,881	$ 20,724
Loans Receivable | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Owner occupied commercial real estate
Risk category of loans by class of loans
Total loans	$ 1,265,783	$ 1,163,480	$ 1,163,327
Loans Receivable | Owner occupied commercial real estate | Pass
Risk category of loans by class of loans
Total loans	1,195,986	1,094,057	1,079,629
Loans Receivable | Owner occupied commercial real estate | Watch
Risk category of loans by class of loans
Total loans	25,301	18,889	32,501
Loans Receivable | Owner occupied commercial real estate | Substandard Performing
Risk category of loans by class of loans
Total loans	39,618	46,401	48,222
Loans Receivable | Owner occupied commercial real estate | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 4,878	$ 4,133	$ 2,975
Loans Receivable | Owner occupied commercial real estate | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Income producing commercial real estate
Risk category of loans by class of loans
Total loans	$ 688,768	$ 598,537	$ 598,318
Loans Receivable | Income producing commercial real estate | Pass
Risk category of loans by class of loans
Total loans	664,137	560,559	556,223
Loans Receivable | Income producing commercial real estate | Watch
Risk category of loans by class of loans
Total loans	4,973	16,701	16,430
Loans Receivable | Income producing commercial real estate | Substandard Performing
Risk category of loans by class of loans
Total loans	18,775	20,560	24,633
Loans Receivable | Income producing commercial real estate | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 883	$ 717	$ 1,032
Loans Receivable | Income producing commercial real estate | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Commercial & industrial
Risk category of loans by class of loans
Total loans	$ 792,791	$ 710,256	$ 554,089
Loans Receivable | Commercial & industrial | Pass
Risk category of loans by class of loans
Total loans	781,820	696,805	542,836
Loans Receivable | Commercial & industrial | Watch
Risk category of loans by class of loans
Total loans	3,188	4,017	4,504
Loans Receivable | Commercial & industrial | Substandard Performing
Risk category of loans by class of loans
Total loans	6,394	7,863	5,647
Loans Receivable | Commercial & industrial | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 1,389	$ 1,571	$ 1,102
Loans Receivable | Commercial & industrial | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Commercial construction
Risk category of loans by class of loans
Total loans	$ 237,820	$ 196,030	$ 159,755
Loans Receivable | Commercial construction | Pass
Risk category of loans by class of loans
Total loans	232,080	190,070	152,894
Loans Receivable | Commercial construction | Watch
Risk category of loans by class of loans
Total loans	2,426	2,311	2,360
Loans Receivable | Commercial construction | Substandard Performing
Risk category of loans by class of loans
Total loans	3,255	3,566	4,406
Loans Receivable | Commercial construction | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 59	$ 83	$ 95
Loans Receivable | Commercial construction | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Commercial
Risk category of loans by class of loans
Total loans	$ 2,985,162	$ 2,668,303	$ 2,475,489
Loans Receivable | Commercial | Pass
Risk category of loans by class of loans
Total loans	2,874,023	2,541,491	2,331,582
Loans Receivable | Commercial | Watch
Risk category of loans by class of loans
Total loans	35,888	41,918	55,795
Loans Receivable | Commercial | Substandard Performing
Risk category of loans by class of loans
Total loans	68,042	78,390	82,908
Loans Receivable | Commercial | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 7,209	$ 6,504	$ 5,204
Loans Receivable | Commercial | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Residential mortgage
Risk category of loans by class of loans
Total loans	$ 935,646	$ 865,789	$ 860,525
Loans Receivable | Residential mortgage | Pass
Risk category of loans by class of loans
Total loans	886,863	814,168	797,725
Loans Receivable | Residential mortgage | Watch
Risk category of loans by class of loans
Total loans	9,605	11,594	10,743
Loans Receivable | Residential mortgage | Substandard Performing
Risk category of loans by class of loans
Total loans	30,579	31,831	41,856
Loans Receivable | Residential mortgage | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 8,599	$ 8,196	$ 10,201
Loans Receivable | Residential mortgage | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Home equity lines of credit
Risk category of loans by class of loans
Total loans	$ 490,753	$ 465,872	$ 451,435
Loans Receivable | Home equity lines of credit | Pass
Risk category of loans by class of loans
Total loans	$ 484,222	$ 459,881	484,222
Loans Receivable | Home equity lines of credit | Watch
Risk category of loans by class of loans
Total loans			167
Loans Receivable | Home equity lines of credit | Substandard Performing
Risk category of loans by class of loans
Total loans	$ 5,591	$ 5,296	7,562
Loans Receivable | Home equity lines of credit | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 940	$ 695	$ 510
Loans Receivable | Home equity lines of credit | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Residential construction
Risk category of loans by class of loans
Total loans	$ 298,920	$ 298,627	$ 301,737
Loans Receivable | Residential construction | Pass
Risk category of loans by class of loans
Total loans	284,395	280,166	276,539
Loans Receivable | Residential construction | Watch
Risk category of loans by class of loans
Total loans	3,481	5,535	8,078
Loans Receivable | Residential construction | Substandard Performing
Risk category of loans by class of loans
Total loans	9,686	10,920	12,872
Loans Receivable | Residential construction | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 1,358	$ 2,006	$ 4,248
Loans Receivable | Residential construction | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Consumer installment
Risk category of loans by class of loans
Total loans	$ 105,931	$ 104,899	$ 105,160
Loans Receivable | Consumer installment | Pass
Risk category of loans by class of loans
Total loans	$ 104,958	$ 103,383	103,203
Loans Receivable | Consumer installment | Watch
Risk category of loans by class of loans
Total loans			10
Loans Receivable | Consumer installment | Substandard Performing
Risk category of loans by class of loans
Total loans	$ 842	$ 1,382	1,776
Loans Receivable | Consumer installment | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 131	$ 134	$ 171
Loans Receivable | Consumer installment | Doubtful / Loss
Risk category of loans by class of loans
Total loans
Loans Receivable | Indirect auto
Risk category of loans by class of loans
Total loans	$ 357,105	$ 268,629	$ 215,939
Loans Receivable | Indirect auto | Pass
Risk category of loans by class of loans
Total loans	$ 355,576	$ 267,709	$ 214,987
Loans Receivable | Indirect auto | Watch
Risk category of loans by class of loans
Total loans
Loans Receivable | Indirect auto | Substandard Performing
Risk category of loans by class of loans
Total loans	$ 961	$ 574	$ 562
Loans Receivable | Indirect auto | Substandard Nonaccrual
Risk category of loans by class of loans
Total loans	$ 568	$ 346	$ 390
Loans Receivable | Indirect auto | Doubtful / Loss
Risk category of loans by class of loans
Total loans

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Securities - Summary of available for sale securities in unrealized loss position (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 463,501	$ 420,951	$ 214,207
Unrealized Loss, Less than 12 Months	5,332	2,669	870
Fair Value, 12 Months or More	212,966	313,204	338,686
Unrealized Loss, 12 Months or More	5,136	8,087	9,543
Fair Value, Total	676,467	734,155	552,893
Unrealized Loss, Total	10,468	10,756	10,413
U.S. Treasuries
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	49,830	34,180	10,508
Unrealized Loss, Less than 12 Months	$ 421	$ 66	$ 71
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	$ 49,830	$ 34,180	$ 10,508
Unrealized Loss, Total	421	66	$ 71
U.S. Government agencies
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	85,769	36,299
Unrealized Loss, Less than 12 Months	$ 525	$ 175
Fair Value, 12 Months or More
Unrealized Loss, 12 Months or More
Fair Value, Total	$ 85,769	$ 36,299
Unrealized Loss, Total	525	175
State and political subdivisions
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	13,441	2,481
Unrealized Loss, Less than 12 Months	$ 141	$ 19
Fair Value, 12 Months or More			$ 3,634
Unrealized Loss, 12 Months or More			38
Fair Value, Total	$ 13,441	$ 2,481	3,634
Unrealized Loss, Total	141	19	38
Mortgage-backed securities
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	145,477	88,741	100,949
Unrealized Loss, Less than 12 Months	1,283	446	519
Fair Value, 12 Months or More	198,067	251,977	277,556
Unrealized Loss, 12 Months or More	5,089	7,019	8,104
Fair Value, Total	343,544	340,718	378,505
Unrealized Loss, Total	6,372	7,465	8,623
Corporate bonds
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	119,690	37,891	19,130
Unrealized Loss, Less than 12 Months	$ 2,701	371	114
Fair Value, 12 Months or More		20,275	46,010
Unrealized Loss, 12 Months or More		705	1,316
Fair Value, Total	$ 119,690	58,166	65,140
Unrealized Loss, Total	2,701	1,076	1,430
Asset-backed securities
Summary of available for sale securities in an unrealized loss position
Fair Value, Less than 12 Months	49,294	221,359	83,620
Unrealized Loss, Less than 12 Months	261	1,592	166
Fair Value, 12 Months or More	14,899	40,952	11,486
Unrealized Loss, 12 Months or More	47	363	85
Fair Value, Total	64,193	262,311	95,106
Unrealized Loss, Total	$ 308	$ 1,955	$ 251

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income	$ 35,483	$ 31,757
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion	10,896	9,966
Provision for credit losses	2,700	4,700
Stock based compensation	2,178	2,228
Deferred income tax benefit	18,519	18,716
Securities gains, net	(1,552)	(4,652)
Gains from sales of government guaranteed loans	(2,635)
Net gains on sale of other assets	(83)
Net gains and write downs on sales of other real estate owned	(143)	(362)
Loss on prepayment of borrowings	1,038	4,446
Changes in assets and liabilities:
Other assets and accrued interest receivable	12	(2,567)
Accrued expenses and other liabilities	(2,997)	(19,691)
Mortgage loans held for sale	(6,924)	(4,599)
Net cash provided by operating activities	56,492	39,942
Investment securities held to maturity:
Proceeds from maturities and calls of securities held to maturity:	35,538	31,159
Purchases of securities held to maturity		(173)
Investment securities available for sale:
Proceeds from sales of securities available for sale	136,817	390,227
Proceeds from maturities and calls of securities available for sale	134,521	111,378
Purchases of securities available for sale	(312,357)	(411,443)
Net increase in loans	(264,702)	(55,199)
Funds (paid to) collected from FDIC under loss sharing agreements	(1,198)	2,112
Proceeds from sales of premises and equipment	147	2,392
Purchases of premises and equipment	(5,055)	(1,934)
Net cash received (paid) for acquisition	44,594	(31,243)
Proceeds from sale of notes		4,561
Proceeds from sale of other real estate	1,434	5,877
Net cash (used in) provided by investing activities	(230,261)	47,714
Financing activities:
Net change in deposits	111,681	(37,960)
Net change in short-term borrowings	3,460	18,569
Repayments of trust preferred securities	(15,998)
Proceeds from FHLB advances	1,060,000	560,000
Repayments of FHLB advances	(967,070)	(505,000)
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans	130	328
Proceeds from issuance of common stock, net of issuance costs		12,206
Retirement of preferred stock		(121,613)
Cash dividends on common stock	(6,192)	(1,810)
Cash dividends on preferred stock		(1,214)
Net cash provided by (used in) financing activities	186,011	(76,494)
Net change in cash and cash equivalents	12,242	11,162
Cash and cash equivalents at beginning of period	192,655	228,898
Cash and cash equivalents at end of period	204,897	240,060
Cash paid during the period for:
Interest	10,993	13,558
Income taxes	2,791	2,044
Unsettled securities purchases		7,264
Unsettled government guaranteed loan sales	6,013
Transfers of loans to foreclosed properties	1,528	6,054
Acquisitions:
Assets acquired	474,009	31,243
Liabilities assumed	409,426
Net assets acquired	64,583	$ 31,243
Common stock issued in acquisition	43,892
Preferred stock issued in acquisition	$ 9,992

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Loans and Allowance for Loan Losses (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of purchased credit impaired loans	$ 10,100		$ 10,100
Unpaid Principal Balance	13,600		13,600
Remaining accretable fair value mark on loans	2,600		2,600
Criteria amount for evaluation of impairment	500,000		500,000
Accruing substandard relationship	$ 2,000		$ 2,000
Percentage of appraised value of underlying collateral in nonaccrual status	80.00%		80.00%
Gross additional interest income that would have been earned if the nonaccrual loans had performed as per original terms	$ 165,000	$ 96,000	$ 424,000	$ 556,000
Specific reserves	6,240	8,980	6,240	8,980	$ 9,720
Loans outstanding classified as troubled debt restructurings	75,000	44,000	75,000	44,000	51,000
FHLB
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pledged as collateral to secure FHLB advances	$ 2,420,000	$ 2,090,000	$ 2,420,000	$ 2,090,000	$ 2,350,000

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Balance Sheet Offsetting - Summary of amounts outstanding under master netting agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Offsetting [Abstract]
Repurchase agreements / reverse repurchase agreements, gross amounts of recognized assets	$ 330,000	$ 395,000	$ 420,000
Repurchase agreements / reverse repurchase agreements, gross amounts offset on balance sheet assets	(300,000)	(375,000)	(375,000)
Repurchase agreements / reverse repurchase agreements, net assets balance	$ 30,000	$ 20,000	$ 45,000
Repurchase agreements / reverse repurchase agreements, gross amounts not off set in balance sheet assets of financial instruments
Repurchase agreements / reverse repurchase agreements, gross amounts not off set in balance sheet assets of collateral received	$ (31,679)	$ (20,302)	$ (48,933)
Repurchase agreements / reverse repurchase agreements, net amount
Derivatives, gross amounts of recognized assets	$ 21,728	$ 20,599	$ 22,024
Derivatives, gross amounts offset on the balance sheet
Derivatives, net asset balance	$ 21,728	$ 20,599	$ 22,024
Derivatives, gross amounts not off set in balance sheet assets of financial instruments	(1,881)	(869)	(1,962)
Derivatives, gross amounts not off set in balance sheet assets of collateral received	(3,978)	(3,716)	162
Derivatives, net amount	15,869	16,014	19,900
Offsetting assets, gross amounts of recognized assets	351,728	415,599	442,024
Offsetting assets, gross amounts offset on balance sheet	(300,000)	(375,000)	(375,000)
Offsetting assets, net asset balance	51,728	40,599	67,024
Offsetting assets, gross amounts not offset in balance sheet of financial instruments	(1,881)	(869)	(1,962)
Offsetting assets, gross amounts not offset in the balance sheet of collateral received	(35,657)	(24,018)	(49,095)
Offsetting assets, net amount	$ 15,869	$ 16,014	$ 19,900
Weighted average interest rate of reverse repurchase agreements, assets	1.17%	1.16%	1.09%
Repurchase agreements / reverse repurchase agreements, gross amounts of recognized liabilities	$ 300,000	$ 375,000	$ 375,000
Repurchase agreements / reverse repurchase agreements, gross amounts offset on balance sheet liabilities	$ (300,000)	$ (375,000)	$ (375,000)
Repurchase agreements / reverse repurchase agreements, net liabilities balance
Repurchase agreements / reverse repurchase agreements, gross amounts not off set in balance sheet liabilities of financial instruments
Repurchase agreements / reverse repurchase agreements, gross amounts not off set in balance sheet liabilities of collateral pledged
Repurchase agreements / reverse repurchase agreements, net amount
Derivatives, gross amounts of recognized liabilities	$ 32,374	$ 31,997	$ 36,545
Derivatives, gross amounts offset on balance sheet liabilities
Derivatives, net liabilities balance	$ 32,374	$ 31,997	$ 36,545
Derivatives, gross amounts not off set in balance sheet liabilities of financial instruments	(1,881)	(869)	(1,962)
Derivatives, gross amounts not off set in balance sheet liabilities of collateral pledged	$ (35,509)	$ (32,792)	$ 35,245
Derivatives, net amount
Offsetting liabilities, gross amounts of recognized liabilities	$ 332,374	$ 406,997	$ 411,545
Offsetting liabilities, gross amounts offset on balance sheet	(300,000)	(375,000)	(375,000)
Offsetting liabilities, net liabilities balance	32,374	31,997	36,545
Offsetting liabilities, gross amounts not offset in balance sheet of financial instruments	(1,881)	(869)	(1,962)
Offsetting liabilities, gross amounts not offset in the balance sheet of collateral pledged	$ (35,509)	$ (32,792)	$ (35,245)
Offsetting liabilities, net amount
Weighted average interest rate of reverse repurchase agreements, liabilities	0.31%	0.29%	0.27%

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2015

Loans and Allowance For Loan Losses [Abstract]

Schedule of major classifications of loans

	June 30, 2015			December 31, 2014			June 30, 2014
Owner occupied commercial real estate	$	1,265,783		$	1,163,480		$	1,163,327
Income producing commercial real estate		688,768			598,537			598,318
Commercial & industrial		792,791			710,256			554,089
Commercial construction		237,820			196,030			159,755
Total commercial		2,985,162			2,668,303			2,475,489
Residential mortgage		935,646			865,789			860,525
Home equity lines of credit		490,753			465,872			451,435
Residential construction		298,920			298,627			301,737
Consumer installment		105,931			104,899			105,160
Indirect auto		357,105			268,629			215,939
Total loans		5,173,517			4,672,119			4,410,285
Less allowance for loan losses		(70,129	)		(71,619	)		(73,248	)
Loans, net	$	5,103,388		$	4,600,500		$	4,337,037

Schedule of changes in the value of the accretable yield for acquired loans accounted

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
Balance at beginning of period
	$	-		$	-
Additions due to acquisitions		1,029			1,029
Accretion		(83	)		(83	)
Balance at end of period	$	946		$	946

Schedule of balance and activity in the allowance for credit losses by portfolio segment

	2015												2014
Three Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated		Provision			Ending Balance
Owner occupied commercial real estate	$	14,952	$	(363	)	$	78	$	1,672		$	16,339	$	20,292	$	(918	)	$	2,753	$	-	$	(4,323	)	$	17,804
Income producing commercial real estate		9,655		(74	)		350		(1,731	)		8,200		10,926		(632	)		197		-		1,270			11,761
Commercial & industrial		3,442		(162	)		789		659			4,728		4,247		(1,012	)		350		-		300			3,885
Commercial construction		5,335		(147	)		51		(344	)		4,895		3,977		(131	)		-		-		221			4,067
Residential mortgage		20,138		(1,109	)		322		(299	)		19,052		15,967		(2,800	)		292		-		3,304			16,763
Home equity lines of credit		4,321		(348	)		26		1,480			5,479		6,120		(624	)		158		-		684			6,338
Residential construction		10,210		(499	)		392		(766	)		9,337		12,181		(1,946	)		275		-		698			11,208
Consumer installment		713		(349	)		187		137			688		717		(455	)		391		-		(54	)		599
Indirect auto		1,241		(130	)		8		292			1,411		796		(89	)		16		-		100			823
Total allowance for loan losses		70,007		(3,181	)		2,203		1,100			70,129		75,223		(8,607	)		4,432		-		2,200			73,248
Allowance for unfunded commitments		2,780		-			-		(200	)		2,580		2,165		-			-		-		-			2,165
Total allowance for credit losses	$	72,787	$	(3,181	)	$	2,203	$	900		$	72,709	$	77,388	$	(8,607	)	$	4,432	$	-	$	2,200		$	75,413

Six Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated			Provision			Ending Balance
Owner occupied commercial real estate	$	16,041	$	(731	)	$	89	$	940		$	16,339	$	17,164	$	(1,284	)	$	2,843	$	1,278		$	(2,197	)	$	17,804
Income producing commercial real estate		10,296		(322	)		357		(2,131	)		8,200		7,174		(837	)		197		688			4,539			11,761
Commercial & industrial		3,255		(631	)		917		1,187			4,728		6,527		(1,975	)		891		318			(1,876	)		3,885
Commercial construction		4,747		(169	)		51		266			4,895		3,669		(132	)		-		388			142			4,067
Residential mortgage		20,311		(1,687	)		484		(56	)		19,052		15,446		(4,381	)		357		1,452			3,889			16,763
Home equity lines of credit		4,574		(421	)		40		1,286			5,479		5,528		(1,627	)		168		391			1,878			6,338
Residential construction		10,603		(1,639	)		471		(98	)		9,337		12,532		(2,251	)		369		1,728			(1,170	)		11,208
Consumer installment		731		(675	)		563		69			688		1,353		(1,131	)		718		-			(341	)		599
Indirect auto		1,061		(258	)		21		587			1,411		1,126		(166	)		27		-			(164	)		823
Unallocated		-		-			-		-			-		6,243		-			-		(6,243	)		-			-
Total allowance for loan losses		71,619		(6,533	)		2,993		2,050			70,129		76,762		(13,784	)		5,570		-			4,700			73,248
Allowance for unfunded commitments		1,930		-			-		650			2,580		2,165		-			-		-			-			2,165
Total allowance for credit losses	$	73,549	$	(6,533	)	$	2,993	$	2,700		$	72,709	$	78,927	$	(13,784	)	$	5,570	$	-		$	4,700		$	75,413

	June 30, 2015								December 31, 2014						June 30, 2014
Allowance for Loan Losses	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased with deteriorated credit quality		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance
Owner occupied commercial real estate	$	1,592	$	14,747	$	-	$	16,339	$	2,737	$	13,304	$	16,041	$	2,483	$	15,321	$	17,804
Income producing commercial real estate		782		7,418		-		8,200		1,917		8,379		10,296		1,404		10,357		11,761
Commercial & industrial		137		4,591		-		4,728		15		3,240		3,255		399		3,486		3,885
Commercial construction		530		4,365		-		4,895		729		4,018		4,747		412		3,655		4,067
Residential mortgage		3,107		15,945		-		19,052		3,227		17,084		20,311		3,117		13,646		16,763
Home equity lines of credit		26		5,453		-		5,479		47		4,527		4,574		115		6,223		6,338
Residential construction		506		8,831		-		9,337		1,192		9,411		10,603		1,054		10,154		11,208
Consumer installment		6		682		-		688		18		713		731		33		566		599
Indirect auto		-		1,411		-		1,411		-		1,061		1,061		-		823		823
Total allowance for loan losses		6,686		63,443		-		70,129		9,882		61,737		71,619		9,017		64,231		73,248
Allowance for unfunded commitments		-		2,580		-		2,580		-		1,930		1,930		-		2,165		2,165
Total allowance for credit losses	$	6,686	$	66,023	$	-	$	72,709	$	9,882	$	63,667	$	73,549	$	9,017	$	66,396	$	75,413
Loans Outstanding
Owner occupied commercial real estate	$	37,547	$	1,225,779	$	2,457	$	1,265,783	$	34,654	$	1,128,826	$	1,163,480	$	31,952	$	1,131,375	$	1,163,327
Income producing commercial real estate		21,926		661,988		4,854		688,768		24,484		574,053		598,537		26,045		572,273		598,318
Commercial & industrial		5,023		787,247		521		792,791		3,977		706,279		710,256		3,641		550,448		554,089
Commercial construction		12,123		223,631		2,066		237,820		12,321		183,709		196,030		11,214		148,541		159,755
Residential mortgage		20,538		914,981		127		935,646		18,775		847,014		865,789		20,455		840,070		860,525
Home equity lines of credit		551		490,132		70		490,753		478		465,394		465,872		540		450,895		451,435
Residential construction		8,631		290,289		-		298,920		11,604		287,023		298,627		13,320		288,417		301,737
Consumer installment		141		105,790		-		105,931		179		104,720		104,899		329		104,831		105,160
Indirect auto		-		357,105		-		357,105		-		268,629		268,629		-		215,939		215,939
Total loans	$	106,480	$	5,056,942	$	10,095	$	5,173,517	$	106,472	$	4,565,647	$	4,672,119	$	107,496	$	4,302,789	$	4,410,285

Schedule of recorded investments in individually evaluated impaired loans

		June 30, 2015						December 31, 2014						June 30, 2014
		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Owner occupied commercial real estate	$	14,138	$	12,939	$	-	$	12,025	$	11,325	$	-	$	14,445	$	12,985	$	-
Income producing commercial real estate		9,696		9,553		-		8,311		8,311		-		12,755		11,808		-
Commercial & industrial		2,785		1,977		-		1,679		1,042		-		1,736		1,710		-
Commercial construction		-		-		-		-		-		-		195		195		-
Total commercial		26,619		24,469		-		22,015		20,678		-		29,131		26,698		-
Residential mortgage		2,395		1,930		-		2,569		1,472		-		3,357		2,849		-
Home equity lines of credit		-		-		-		-		-		-		-		-		-
Residential construction		2,347		2,347		-		4,338		3,338		-		6,168		5,491		-
Consumer installment		-		-		-		-		-		-		-		-		-
Indirect auto		-		-		-		-		-		-		-		-		-
Total with no related allowance recorded		31,361		28,746		-		28,922		25,488		-		38,656		35,038		-
With an allowance recorded:
Owner occupied commercial real estate		26,301		24,608		1,592		24,728		23,329		2,737		20,287		18,967		2,483
Income producing commercial real estate		12,460		12,373		782		16,352		16,173		1,917		14,706		14,237		1,404
Commercial & industrial		3,055		3,046		137		2,936		2,935		15		1,931		1,931		399
Commercial construction		12,203		12,123		530		12,401		12,321		729		11,194		11,019		412
Total commercial		54,019		52,150		3,041		56,417		54,758		5,398		48,118		46,154		4,698
Residential mortgage		19,045		18,608		3,107		17,732		17,303		3,227		18,077		17,606		3,117
Home equity lines of credit		563		551		26		478		478		47		540		540		115
Residential construction		7,291		6,284		506		8,962		8,266		1,192		9,255		7,829		1,054
Consumer installment		163		141		6		179		179		18		329		329		33
Indirect auto		-		-		-		-		-		-		-		-		-
Total with an allowance recorded		81,081		77,734		6,686		83,768		80,984		9,882		76,319		72,458		9,017
Total	$	112,442	$	106,480	$	6,686	$	112,690	$	106,472	$	9,882	$	114,975	$	107,496	$	9,017

Schedule of average balances of impaired loans and income recognized on impaired loans

	2015						2014
Three Months Ended June 30,	Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received		Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received
Owner occupied commercial real estate	$	37,985	$	469	$	509	$	31,558	$	403	$	391
Income producing commercial real estate		22,055		273		253		26,415		316		317
Commercial & industrial		5,221		45		89		3,683		40		50
Commercial construction		12,164		117		116		11,340		104		107
Total commercial		77,425		904		967		72,996		863		865
Residential mortgage		20,604		200		203		20,598		228		217
Home equity lines of credit		558		5		5		550		5		6
Residential construction		8,748		128		132		13,762		177		175
Consumer installment		161		3		3		335		6		5
Indirect auto		-		-		-		-		-		-
Total	$	107,496	$	1,240	$	1,310	$	108,241	$	1,279	$	1,268
Six Months Ended June 30,
Owner occupied commercial real estate	$	37,487	$	929	$	968	$	30,334	$	761	$	771
Income producing commercial real estate		21,740		540		529		26,138		628		650
Commercial & industrial		4,622		83		125		4,122		92		101
Commercial construction		12,219		233		237		12,027		216		242
Total commercial		76,068		1,785		1,859		72,621		1,697		1,764
Residential mortgage		21,345		425		436		20,960		457		455
Home equity lines of credit		518		10		10		528		10		12
Residential construction		9,662		248		258		13,400		322		325
Consumer installment		157		6		6		392		12		14
Indirect auto		-		-		-		-		-		-
Total	$	107,750	$	2,474	$	2,569	$	107,901	$	2,498	$	2,570

Schedule of recorded investment in nonaccrual loans by loan class

		Nonaccrual Loans
		June 30, 2015		December 31, 2014		June 30, 2014
Owner occupied commercial real estate	$	4,878	$	4,133	$	2,975
Income producing commercial real estate		883		717		1,032
Commercial & industrial		1,389		1,571		1,102
Commercial construction		59		83		95
Total commercial		7,209		6,504		5,204
Residential mortgage		8,599		8,196		10,201
Home equity lines of credit		940		695		510
Residential construction		1,358		2,006		4,248
Consumer installment		131		134		171
Indirect auto		568		346		390
Total	$	18,805	$	17,881	$	20,724

Schedule of aging of the recorded investment in past due loans

	Loans Past Due								Loans Not
As of June 30, 2015	30 - 59 Days		60 - 89 Days		>90 Days		Total		Past Due		Total
Owner occupied commercial real estate	$	2,789	$	337	$	1,646	$	4,772	$	1,261,011	$	1,265,783
Income producing commercial real estate		726		313		440		1,479		687,289		688,768
Commercial & industrial		810		87		1,278		2,175		790,616		792,791
Commercial construction		626		-		44		670		237,150		237,820
Total commercial		4,951		737		3,408		9,096		2,976,066		2,985,162
Residential mortgage		4,888		1,568		1,615		8,071		927,575		935,646
Home equity lines of credit		1,268		528		279		2,075		488,678		490,753
Residential construction		2,110		269		429		2,808		296,112		298,920
Consumer installment		444		188		23		655		105,276		105,931
Indirect auto		276		132		402		810		356,295		357,105
Total loans	$	13,937	$	3,422	$	6,156	$	23,515	$	5,150,002	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,444	$	1,929	$	1,141	$	4,514	$	1,158,966	$	1,163,480
Income producing commercial real estate		2,322		1,172		-		3,494		595,043		598,537
Commercial & industrial		302		40		1,425		1,767		708,489		710,256
Commercial construction		-		-		66		66		195,964		196,030
Total commercial		4,068		3,141		2,632		9,841		2,658,462		2,668,303
Residential mortgage		5,234		2,931		3,278		11,443		854,346		865,789
Home equity lines of credit		961		303		167		1,431		464,441		465,872
Residential construction		1,172		268		1,395		2,835		295,792		298,627
Consumer installment		607		136		33		776		104,123		104,899
Indirect auto		200		146		141		487		268,142		268,629
Total loans	$	12,242	$	6,925	$	7,646	$	26,813	$	4,645,306	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	448	$	1,239	$	762	$	2,449	$	1,160,878	$	1,163,327
Income producing commercial real estate		2,030		-		242		2,272		596,046		598,318
Commercial & industrial		930		101		405		1,436		552,653		554,089
Commercial construction		116		-		50		166		159,589		159,755
Total commercial		3,524		1,340		1,459		6,323		2,469,166		2,475,489
Residential mortgage		7,372		1,404		3,150		11,926		848,599		860,525
Home equity lines of credit		1,609		193		79		1,881		449,554		451,435
Residential construction		1,246		584		1,331		3,161		298,576		301,737
Consumer installment		677		80		1		758		104,402		105,160
Indirect auto		258		99		193		550		215,389		215,939
Total loans	$	14,686	$	3,700	$	6,213	$	24,599	$	4,385,686	$	4,410,285

Schedule of TDRs including the number of loan contracts restructured and the pre- and post-modification recorded investment

	June 30, 2015						December 31, 2014						June 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding  Recorded Investment
Owner occupied commercial real estate		57	$	34,845	$	33,401		54	$	27,695	$	26,296		52	$	28,233	$	26,670
Income producing commercial real estate		29		15,756		15,681		31		18,094		17,915		33		19,427		18,957
Commercial & industrial		32		3,583		3,583		32		2,848		2,847		31		2,893		2,893
Commercial construction		14		11,174		11,094		14		11,360		11,280		15		11,390		11,213
Total commercial		132		65,358		63,759		131		59,997		58,338		131		61,943		59,733
Residential mortgage		165		19,742		19,141		154		18,630		17,836		154		21,008		20,030
Home equity lines of credit		3		560		551		2		478		478		4		540		540
Residential construction		45		6,925		6,284		48		8,962		8,265		54		12,463		10,361
Consumer installment		16		159		141		17		179		179		23		329		329
Indirect auto		-		-		-		-		-		-		-		-		-
Total loans		361	$	92,744	$	89,876		352	$	88,246	$	85,096		366	$	96,283	$	90,993

Schedule of loans modified under the terms of TDR

	New Troubled Debt Restructurings for the Three Months Ended June 30,										New Troubled Debt Restructurings for the Six Months Ended June 30,
							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2015										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2015
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2015	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		6	$	8,040	$	7,996		-	$	-		8	$	12,537	$	12,493		-	$	-
Income producing commercial real estate		1		55		54		-		-		3		310		310		-		-
Commercial & industrial		4		992		992		-		-		6		1,180		1,180		-		-
Commercial construction		1		233		233		-		-		1		233		233		-		-
Total commercial		12		9,320		9,275		-		-		18		14,260		14,216		-		-
Residential mortgage		8		523		523		-		-		23		2,121		2,121		-		-
Home equity lines of credit		1		83		74		-		-		1		83		74		-		-
Residential construction		2		163		139		-		-		2		163		139		-		-
Consumer installment		1		25		25		-		-		2		28		28		1		30
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		24	$	10,114	$	10,036		-	$	-		46	$	16,655	$	16,578		1	$	30

							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2014										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2014
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2014	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		5	$	2,787	$	2,787		-	$	-		7	$	3,392	$	3,392		1	$	104
Income producing commercial real estate		3		1,459		1,459		-		-		5		1,992		1,992		-		-
Commercial & industrial		3		106		106		-		-		4		330		330		2		54
Commercial construction		1		240		240		-		-		2		471		471		-		-
Total commercial		12		4,592		4,592		-		-		18		6,185		6,185		3		158
Residential mortgage		9		1,014		973		2		280		23		2,146		2,105		6		732
Home equity lines of credit		1		36		36		-		-		1		36		36		-		-
Residential construction		3		1,124		1,124		-		-		3		1,124		1,124		-		-
Consumer installment		3		84		84		-		-		5		226		226		-		-
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		28	$	6,850	$	6,809		2	$	280		50	$	9,717	$	9,676		9	$	890

Schedule of risk category of loans by class of loans

					Substandard				Doubtful /
As of June 30, 2015	Pass		Watch		Performing		Nonaccrual		Loss		Total
Owner occupied commercial real estate	$	1,195,986	$	25,301	$	39,618	$	4,878	$	-	$	1,265,783
Income producing commercial real estate		664,137		4,973		18,775		883		-		688,768
Commercial & industrial		781,820		3,188		6,394		1,389		-		792,791
Commercial construction		232,080		2,426		3,255		59		-		237,820
Total commercial		2,874,023		35,888		68,042		7,209		-		2,985,162
Residential mortgage		886,863		9,605		30,579		8,599		-		935,646
Home equity lines of credit		484,222		-		5,591		940		-		490,753
Residential construction		284,395		3,481		9,686		1,358		-		298,920
Consumer installment		104,958		-		842		131		-		105,931
Indirect auto		355,576		-		961		568		-		357,105
Total loans	$	4,990,037	$	48,974	$	115,701	$	18,805	$	-	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,094,057	$	18,889	$	46,401	$	4,133	$	-	$	1,163,480
Income producing commercial real estate		560,559		16,701		20,560		717		-		598,537
Commercial & industrial		696,805		4,017		7,863		1,571		-		710,256
Commercial construction		190,070		2,311		3,566		83		-		196,030
Total commercial		2,541,491		41,918		78,390		6,504		-		2,668,303
Residential mortgage		814,168		11,594		31,831		8,196		-		865,789
Home equity lines of credit		459,881		-		5,296		695		-		465,872
Residential construction		280,166		5,535		10,920		2,006		-		298,627
Consumer installment		103,383		-		1,382		134		-		104,899
Indirect auto		267,709		-		574		346		-		268,629
Total loans	$	4,466,798	$	59,047	$	128,393	$	17,881	$	-	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	1,079,629	$	32,501	$	48,222	$	2,975	$	-	$	1,163,327
Income producing commercial real estate		556,223		16,430		24,633		1,032		-		598,318
Commercial & industrial		542,836		4,504		5,647		1,102		-		554,089
Commercial construction		152,894		2,360		4,406		95		-		159,755
Total commercial		2,331,582		55,795		82,908		5,204		-		2,475,489
Residential mortgage		797,725		10,743		41,856		10,201		-		860,525
Home equity lines of credit		443,196		167		7,562		510		-		451,435
Residential construction		276,539		8,078		12,872		4,248		-		301,737
Consumer installment		103,203		10		1,776		171		-		105,160
Indirect auto		214,987		-		562		390		-		215,939
Total loans	$	4,167,232	$	74,793	$	147,536	$	20,724	$	-	$	4,410,285

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Securities (Tables)

6 Months Ended

Jun. 30, 2015

Investment Securities [Abstract]

Schedule of cost basis, gross unrealized gains and losses and fair value of securities held to maturity

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
As of June 30, 2015	Cost		Gains		Losses		Value
State and political subdivisions	$	47,116	$	3,103	$	-	$	50,219
Mortgage-backed securities (1)		332,641		6,899		1,693		337,847
Total	$	379,757	$	10,002	$	1,693	$	388,066
As of December 31, 2014
State and political subdivisions	$	48,157	$	3,504	$	-	$	51,661
Mortgage-backed securities (1)		367,110		7,716		1,254		373,572
Total	$	415,267	$	11,220	$	1,254	$	425,233
As of June 30, 2014
State and political subdivisions	$	50,669	$	3,872	$	-	$	54,541
Mortgage-backed securities (1)		398,083		8,257		2,017		404,323
Total	$	448,752	$	12,129	$	2,017	$	458,864

⁽¹⁾ All are residential type mortgage-backed securities or U.S.government agency commercial mortgage backed securities.

Schedule of held to maturity securities in an unrealized loss position

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Mortgage-backed securities	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
Total unrealized loss position	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
As of December 31, 2014
Mortgage-backed securities	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
Total unrealized loss position	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
As of June 30, 2014
Mortgage-backed securities	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017
Total unrealized loss position	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017

Schedule of cost basis, unrealized gains and losses, and fair value of securities available for sale

As of June 30, 2015		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	U.S. Treasuries	$	127,962	$	360	$	421	$	127,901
	U.S. Government agencies		110,710		126		525		110,311
	State and political subdivisions		30,489		416		141		30,764
	Mortgage-backed securities (1)		989,636		14,852		6,372		998,116
	Corporate bonds		208,114		1,611		2,701		207,024
	Asset-backed securities		462,702		3,938		308		466,332
	Other		1,871		-		-		1,871
	Total	$	1,931,484	$	21,303	$	10,468	$	1,942,319
As of December 31, 2014
	U.S. Treasuries	$	105,540	$	235	$	66	$	105,709
	U.S. Government agencies		36,474		-		175		36,299
	State and political subdivisions		19,748		504		19		20,233
	Mortgage-backed securities (1)		988,012		16,273		7,465		996,820
	Corporate bonds		165,018		1,686		1,076		165,628
	Asset-backed securities		455,626		2,257		1,955		455,928
	Other		2,117		-		-		2,117
	Total	$	1,772,535	$	20,955	$	10,756	$	1,782,734
As of June 30, 2014
	U.S. Treasuries	$	15,579	$	-	$	71	$	15,508
	State and political subdivisions		21,080		773		38		21,815
	Mortgage-backed securities (1)		1,068,593		17,470		8,623		1,077,440
	Corporate bonds		175,975		1,426		1,430		175,971
	Asset-backed securities		444,910		3,664		251		448,323
	Other		2,211		-		-		2,211
	Total	$	1,728,348	$	23,333	$	10,413	$	1,741,268

⁽¹⁾ All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

Schedule of available for sale securities in an unrealized loss position

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasuries	$	49,830	$	421	$	-	$	-	$	49,830	$	421
U.S. Government agencies		85,769		525		-		-		85,769		525
State and political subdivisions		13,441		141		-		-		13,441		141
Mortgage-backed securities		145,477		1,283		198,067		5,089		343,544		6,372
Corporate bonds		119,690		2,701		-		-		119,690		2,701
Asset-backed securities		49,294		261		14,899		47		64,193		308
Total unrealized loss position	$	463,501	$	5,332	$	212,966	$	5,136	$	676,467	$	10,468
As of December 31, 2014
U.S. Treasuries	$	34,180	$	66	$	-	$	-	$	34,180	$	66
U.S. Government agencies		36,299		175		-		-		36,299		175
State and political subdivisions		2,481		19		-		-		2,481		19
Mortgage-backed securities		88,741		446		251,977		7,019		340,718		7,465
Corporate bonds		37,891		371		20,275		705		58,166		1,076
Asset-backed securities		221,359		1,592		40,952		363		262,311		1,955
Total unrealized loss position	$	420,951	$	2,669	$	313,204	$	8,087	$	734,155	$	10,756
As of June 30, 2014
U.S. Treasuries	$	10,508	$	71	$	-	$	-	$	10,508	$	71
State and political subdivisions		-		-		3,634		38		3,634		38
Mortgage-backed securities		100,949		519		277,556		8,104		378,505		8,623
Corporate bonds		19,130		114		46,010		1,316		65,140		1,430
Asset-backed securities		83,620		166		11,486		85		95,106		251
Total unrealized loss position	$	214,207	$	870	$	338,686	$	9,543	$	552,893	$	10,413

Schedule of summary of securities sales activities

	Three Months Ended June 30,					Six Months Ended June 30,
		2015		2014			2015		2014
Proceeds from sales	$	67,350	$	236,911		$	136,817	$	390,227
Gross gains on sales	$	13	$	5,374		$	1,552	$	5,784
Gross losses on sales		-		(939	)		-		(1,132	)
Net gains on sales of securities	$	13	$	4,435		$	1,552	$	4,652
Income tax expense attributable to sales	$	5	$	1,725		$	603	$	1,817

Schedule of amortized cost and fair value of available for sale and held to maturity securities by contractual maturity

			Available-for-Sale				Held-to-Maturity
		Amortized Cost		Fair Value		Amortized Cost		Fair Value
US Treasuries:
	1 to 5 years	$	77,711	$	78,071	$	-	$	-
	5 to 10 years		50,251		49,830		-		-
			127,962		127,901		-
US Government agencies:
	1 to 5 years		32,007		31,801		-		-
	5 to 10 years		78,703		78,510		-		-
			110,710		110,311		-
State and political subdivisions:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		9,709		9,969		17,670		18,756
	5 to 10 years		11,325		11,237		22,140		23,673
	More than 10 years		4,968		4,995		6,300		6,754
			30,489		30,764		47,116		50,219
Corporate bonds:
	1 to 5 years		57,031		57,474		-		-
	5 to 10 years		118,603		118,841		-		-
	More than 10 years		32,480		30,709		-		-
			208,114		207,024		-
Asset-backed securities:
	1 to 5 years		237,660		239,903		-		-
	5 to 10 years		78,367		78,628		-		-
	More than 10 years		146,675		147,801		-		-
			462,702		466,332		-
Other:
	More than 10 years		1,871		1,871		-		-
			1,871		1,871		-
Total securities other than mortgage-backed securities:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		414,118		417,218		17,670		18,756
	5 to 10 years		337,249		337,046		22,140		23,673
	More than 10 years		185,994		185,376		6,300		6,754
Mortgage-backed securities			989,636		998,116		332,641		337,847
		$	1,931,484	$	1,942,319	$	379,757	$	388,066

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Loans and Allowance for Loan Losses - Average balances of impaired loans and income recognized on impaired loans (Details 5) - Loans Receivable - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Average balances of impaired loans and income recognized on impaired loans
Average Balance	$ 107,496	$ 108,241	$ 107,750	$ 107,901
Interest Revenue Recognized During Impairment	1,240	1,279	2,474	2,498
Cash Basis Interest Revenue Received	1,310	1,268	2,569	2,570
Owner occupied commercial real estate
Average balances of impaired loans and income recognized on impaired loans
Average Balance	37,985	31,558	37,487	30,334
Interest Revenue Recognized During Impairment	469	403	929	761
Cash Basis Interest Revenue Received	509	391	968	771
Income producing commercial real estate
Average balances of impaired loans and income recognized on impaired loans
Average Balance	22,055	26,415	21,740	26,138
Interest Revenue Recognized During Impairment	273	316	540	628
Cash Basis Interest Revenue Received	253	317	529	650
Commercial & industrial
Average balances of impaired loans and income recognized on impaired loans
Average Balance	5,221	3,683	4,622	4,122
Interest Revenue Recognized During Impairment	45	40	83	92
Cash Basis Interest Revenue Received	89	50	125	101
Commercial construction
Average balances of impaired loans and income recognized on impaired loans
Average Balance	12,164	11,340	12,219	12,027
Interest Revenue Recognized During Impairment	117	104	233	216
Cash Basis Interest Revenue Received	116	107	237	242
Commercial
Average balances of impaired loans and income recognized on impaired loans
Average Balance	77,425	72,996	76,068	72,621
Interest Revenue Recognized During Impairment	904	863	1,785	1,697
Cash Basis Interest Revenue Received	967	865	1,859	1,764
Residential mortgage
Average balances of impaired loans and income recognized on impaired loans
Average Balance	20,604	20,598	21,345	20,960
Interest Revenue Recognized During Impairment	200	228	425	457
Cash Basis Interest Revenue Received	203	217	436	455
Home equity lines of credit
Average balances of impaired loans and income recognized on impaired loans
Average Balance	558	550	518	528
Interest Revenue Recognized During Impairment	5	5	10	10
Cash Basis Interest Revenue Received	5	6	10	12
Residential construction
Average balances of impaired loans and income recognized on impaired loans
Average Balance	8,748	13,762	9,662	13,400
Interest Revenue Recognized During Impairment	128	177	248	322
Cash Basis Interest Revenue Received	132	175	258	325
Consumer installment
Average balances of impaired loans and income recognized on impaired loans
Average Balance	161	335	157	392
Interest Revenue Recognized During Impairment	3	6	6	12
Cash Basis Interest Revenue Received	$ 3	$ 5	$ 6	$ 14
Indirect auto
Average balances of impaired loans and income recognized on impaired loans
Average Balance
Interest Revenue Recognized During Impairment
Cash Basis Interest Revenue Received

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Securities - Amortized cost, gross unrealized gains and losses and fair value of securities held to maturity (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Held-to-maturity securities:
Amortized Cost		$ 379,757	$ 415,267	$ 448,752
Gross Unrealized Gains		10,002	11,220	12,129
Gross Unrealized Losses		1,693	1,254	2,017
Held-to-Maturity, Fair value		388,066	425,233	458,864
State and political subdivisions
Held-to-maturity securities:
Amortized Cost		47,116	48,157	50,669
Gross Unrealized Gains		$ 3,103	$ 3,504	$ 3,872
Gross Unrealized Losses
Held-to-Maturity, Fair value		$ 50,219	$ 51,661	$ 54,541
Mortgage-backed securities
Held-to-maturity securities:
Amortized Cost	[1]	332,641	367,110	398,083
Gross Unrealized Gains	[1]	6,899	7,716	8,257
Gross Unrealized Losses	[1]	1,693	1,254	2,017
Held-to-Maturity, Fair value	[1]	$ 337,847	$ 373,572	$ 404,323

[1] All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

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Servicing Rights for Government Guaranteed Loans (Tables)

6 Months Ended

Jun. 30, 2015

Transfers and Servicing [Abstract]

Schedule of changes in the balances of servicing assets and servicing liabilities subsequently measured using the fair value measurement method

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015			2014		2015			2014
Fair value at beginning of period	$	2,717		$	-	$	2,551		$	-
Additions:
Acquired servicing rights		-			2,133		-			2,133
Originated servicing rights capitalized upon sale on loans		442			129		632			129
Changes in fair value:
Due to change in valuation inputs or assumptions used in valuation model		(41	)		-		(65	)		-
Fair value at end of period	$	3,118		$	2,262	$	3,118		$	2,262

Schedule of key characteristics, inputs, and economic assumptions used to estimate the fair value of SBA Servicing Asset

	June 30,			December 31,
	2015			2014
Fair value of retained servicing assets	$	3,118		$	2,551
Prepayment rate assumption		6.98	%		6.70	%
10% adverse change	$	(80	)	$	(62	)
20% adverse change	$	(156	)	$	(122	)
Discount rate		11.0	%		12.0	%
100 bps adverse change	$	(109	)	$	(85	)
200bps adverse change	$	(211	)	$	(164	)
Weighted-average life (months)		6.9			6.5
Weighted-average gross margin		2.02	%		2.00	%

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Reclassifications Out of Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2015

Reclassifications Out Of Accumulated Other Comprehensive Income [Abstract]

Schedule of reclassifications out of accumulated other comprehensive income

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement
Comprehensive Income Components	2015			2014			2015			2014			Where Net Income is Presented
Realized gains on sales of available-for-sale securities:
	$	13		$	4,435		$	1,552		$	4,652		Securities gains, net
		(5	)		(1,725	)		(603	)		(1,817	)	Tax expense
	$	8		$	2,710		$	949		$	2,835		Net of tax
Amortization of (losses) gains included in net income on available-for-sale securities transferred to held to maturity:
	$	(289	)	$	(409	)	$	(773	)	$	(739	)	Investment securities interest revenue
		105			154			287			277		Tax benefit (expense)
	$	(184	)	$	(255	)	$	(486	)	$	(462	)	Net of tax
Gains included in net income on derivative financial instruments accounted for as cash flow hedges:
Effective portion of interest rate contracts	$	-		$	(350	)	$	-		$	(447	)	Time deposit interest expense
Amortization of losses on de-designated positions		(30	)		-			(78	)		-		Deposits in banks and short-term investmens in interest revenue
Amortization of losses on de-designated positions		(146	)		(24	)		(265	)		(24	)	Money market deposit interest expense
Amortization of losses on de-designated positions		(279	)		-			(537	)		-		Federal Home Loan Bank advances interest expense
Amortization of losses on de-designated positions		-			(199	)		-			(199	)	Time deposit interest expense
		(455	)		(573	)		(880	)		(670	)	Total before tax
		177			223			342			261		Tax or benefit (expense)
	$	(278	)	$	(350	)	$	(538	)	$	(409	)	Net of tax
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan
Prior service cost	$	(91	)	$	(92	)	$	(182	)	$	(183	)	Salaries and employee benefits expense
Actuarial losses		(68	)		-			(136	)		-		Salaries and employee benefits expense
		(159	)		(92	)		(318	)		(183	)	Total before tax
		62			36			124			71		Tax benefit
	$	(97	)	$	(56	)	$	(194	)	$	(112	)	Net of tax
Total reclassifications for the period	$	(551	)	$	2,049		$	(269	)	$	1,852		Net of tax

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statement Of Changes In Shareholders' Equity [Abstract]
Number of shares redeemed of Series B preferred stock		105,000
Number of shares redeemed of Series D preferred stock		16,613
Number of common stock issued at market		640,000
Common stock issued to dividend reinvestment plan and employee benefit plans	7,661	19,299
Conversion of non-voting common stock to voting shares	1,795,271	3,107,419
Common shares issued for acquisition	2,358,503
Series H preferred shares issued for acquisition	9,992
Vesting of restricted stock, net of shares surrendered to cover payroll taxes, shares issued	60,698	40,751
Vesting of restricted stock, net of shares surrendered to cover payroll taxes, shares deferred	59,685	72,797
Shares issued from deferred compensation plan	14,125	7,481
Common stock dividends (in dollars per share)	$ 0.10	$ 0.03

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of accrued dividends on preferred stock, including accretion of discounts

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Series H - 1% until March 15, 2016, subject to change based on Qualified Small Business Lending, 9% thereafter	$	17	$	-	$	17	$	-
Series B - 5% fixed until December 6, 2013, 9% thereafter		-		-		-		159
Series D - LIBOR plus 9.6875%, resets quarterly		-		-		-		280
Total preferred stock dividends	$	17	$	-	$	17	$	439

Schedule of computation of basic and diluted loss per share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income available to common shareholders	$	17,796	$	16,357	$	35,466	$	31,318
Weighted average shares outstanding:
Basic		62,549		60,712		61,730		60,386
Effect of dilutive securities
Stock options		4		2		4		2
Diluted		62,553		60,714		61,734		60,388
Net income per common share:
Basic	$	.28	$	.27	$	.57	$	.52
Diluted	$	.28	$	.27	$	.57	$	.52

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Assets and Liabilities Measured at Fair Value - Assets and liabilities measured at fair value on nonrecurring basis (Details 3) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 3,907	$ 7,317	$ 8,641
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 3,907	$ 7,317	$ 8,641

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Acquisition (Details 1) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Acquisition [Line Items]
Revenue, Actual MoneyTree from May 1, 2015 - June 30, 2015		$ 77,357	$ 66,516	$ 148,481	$ 130,004
Net Income, Actual MoneyTree from May 1, 2015 - June 30, 2015		$ 17,813	$ 16,357	35,483	31,757
MoneyTree | FNB
Business Acquisition [Line Items]
Revenue, Actual MoneyTree from May 1, 2015 - June 30, 2015	$ 2,284
Net Income, Actual MoneyTree from May 1, 2015 - June 30, 2015	$ 384
Revenue, supplemental consolidated pro forma from January 1, 2015 - June 30, 2015				153,322	137,809
Net Income, supplemental consolidated pro forma from January 1, 2014 - June 30, 2014				$ 38,294	$ 31,080

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Loans and Allowance for Loan Losses - Balance and activity in allowance for loan losses by portfolio segment and recorded investment in loans by portfolio segment (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	$ 72,787	$ 77,388	$ 73,549	$ 78,927
Charge-Offs	(3,181)	(8,607)	(6,533)	(13,784)
Recoveries	2,203	$ 4,432	2,993	$ 5,570
Allocation of Unallocated
Provision	900	$ 2,200	2,700	$ 4,700
Ending Balance	72,709	75,413	72,709	75,413
Loans Receivable
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	70,007	75,223	71,619	76,762
Charge-Offs	(3,181)	(8,607)	(6,533)	(13,784)
Recoveries	2,203	$ 4,432	2,993	$ 5,570
Allocation of Unallocated
Provision	1,100	$ 2,200	2,050	$ 4,700
Ending Balance	70,129	73,248	70,129	73,248
Loans Receivable | Owner occupied commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	14,952	20,292	16,041	17,164
Charge-Offs	(363)	(918)	(731)	(1,284)
Recoveries	78	$ 2,753	89	2,843
Allocation of Unallocated				1,278
Provision	1,672	$ (4,323)	940	(2,197)
Ending Balance	16,339	17,804	16,339	17,804
Loans Receivable | Income producing commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	9,655	10,926	10,296	7,174
Charge-Offs	(74)	(632)	(322)	(837)
Recoveries	350	$ 197	357	197
Allocation of Unallocated				688
Provision	(1,731)	$ 1,270	(2,131)	4,539
Ending Balance	8,200	11,761	8,200	11,761
Loans Receivable | Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	3,442	4,247	3,255	6,527
Charge-Offs	(162)	(1,012)	(631)	(1,975)
Recoveries	789	$ 350	917	891
Allocation of Unallocated				318
Provision	659	$ 300	1,187	(1,876)
Ending Balance	4,728	3,885	4,728	3,885
Loans Receivable | Commercial construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	5,335	3,977	4,747	3,669
Charge-Offs	(147)	$ (131)	(169)	$ (132)
Recoveries	51		51
Allocation of Unallocated				$ 388
Provision	(344)	$ 221	266	142
Ending Balance	4,895	4,067	4,895	4,067
Loans Receivable | Residential mortgage
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	20,138	15,967	20,311	15,446
Charge-Offs	(1,109)	(2,800)	(1,687)	(4,381)
Recoveries	322	$ 292	484	357
Allocation of Unallocated				1,452
Provision	(299)	$ 3,304	(56)	3,889
Ending Balance	19,052	16,763	19,052	16,763
Loans Receivable | Home equity lines of credit
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	4,321	6,120	4,574	5,528
Charge-Offs	(348)	(624)	(421)	(1,627)
Recoveries	26	$ 158	40	168
Allocation of Unallocated				391
Provision	1,480	$ 684	1,286	1,878
Ending Balance	5,479	6,338	5,479	6,338
Loans Receivable | Residential construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	10,210	12,181	10,603	12,532
Charge-Offs	(499)	(1,946)	(1,639)	(2,251)
Recoveries	392	$ 275	471	369
Allocation of Unallocated				1,728
Provision	(766)	$ 698	(98)	(1,170)
Ending Balance	9,337	11,208	9,337	11,208
Loans Receivable | Consumer installment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	713	717	731	1,353
Charge-Offs	(349)	(455)	(675)	(1,131)
Recoveries	187	$ 391	563	$ 718
Allocation of Unallocated
Provision	137	$ (54)	69	$ (341)
Ending Balance	688	599	688	599
Loans Receivable | Indirect auto
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	1,241	796	1,061	1,126
Charge-Offs	(130)	(89)	(258)	(166)
Recoveries	8	$ 16	21	$ 27
Allocation of Unallocated
Provision	292	$ 100	587	$ (164)
Ending Balance	$ 1,411	$ 823	$ 1,411	823
Loans Receivable | Unallocated
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance				$ 6,243
Charge-Offs
Recoveries
Allocation of Unallocated				$ (6,243)
Provision
Ending Balance
Loans Receivable | Allowance for unfunded commitments
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	$ 2,780	$ 2,165	$ 1,930	$ 2,165
Charge-Offs
Recoveries
Allocation of Unallocated
Provision	$ (200)		$ 650
Ending Balance	$ 2,580	$ 2,165	$ 2,580	$ 2,165

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Derivatives and Hedging Activities - Derivatives in Cash Flow Hedging Relationships (Details 3) - Cash flow hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)		$ (3,547)	$ (471)	$ (6,379)
Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	$ (455)	(573)	(880)	(670)
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)		$ (50)	$ (7)	$ (85)

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Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest revenue:
Loans, including fees	$ 52,976	$ 48,261	$ 102,640	$ 95,949
Investment securities, including tax exempt of $181, $193, $339 and $381	12,037	12,165	24,095	23,772
Deposits in banks and short-term investments	795	980	1,607	1,823
Total interest revenue	65,808	61,406	128,342	121,544
Deposits:
NOW	348	411	742	851
Money market	806	757	1,479	1,320
Savings	26	21	46	41
Time	895	2,018	2,004	3,789
Total deposit interest expense	2,075	3,207	4,271	6,001
Short-term borrowings	82	908	180	1,748
Federal Home Loan Bank advances	454	80	846	138
Long-term debt	2,206	2,638	4,812	5,272
Total interest expense	4,817	6,833	10,109	13,159
Net interest revenue	60,991	54,573	118,233	108,385
Provision for credit losses	900	2,200	2,700	4,700
Net interest revenue after provision for credit losses	60,091	52,373	115,533	103,685
Fee revenue:
Service charges and fees	8,375	8,527	15,990	16,425
Mortgage loan and other related fees	3,707	1,877	6,462	3,231
Brokerage fees	1,232	1,245	2,783	2,422
Gains from sales of government guaranteed loans	1,494	744	2,635	744
Securities gains, net	13	4,435	1,552	4,652
Loss from prepayment of debt		(4,446)	(1,038)	(4,446)
Other	2,445	1,761	4,564	3,291
Total fee revenue	17,266	14,143	32,948	26,319
Total revenue	77,357	66,516	148,481	130,004
Operating expenses:
Salaries and employee benefits	27,961	24,287	54,407	48,683
Communications and equipment	3,304	3,037	6,575	6,276
Occupancy	3,415	3,262	6,693	6,640
Advertising and public relations	1,127	1,139	1,877	1,765
Postage, printing and supplies	993	804	1,931	1,580
Professional fees	2,257	2,172	4,176	3,599
FDIC assessments and other regulatory charges	1,298	1,425	2,507	2,778
Merger-related charges	3,173		3,173
Other	4,892	4,406	10,142	8,261
Total operating expenses	48,420	40,532	91,481	79,582
Net income before income taxes	28,937	25,984	57,000	50,422
Income tax expense	11,124	9,627	21,517	18,665
Net income	17,813	16,357	35,483	31,757
Preferred stock dividends and discount accretion	17		17	439
Net income available to common shareholders	$ 17,796	$ 16,357	$ 35,466	$ 31,318
Earnings per common share:
Basic (in dollars per share)	$ 0.28	$ 0.27	$ 0.57	$ 0.52
Diluted (in dollars per share)	$ 0.28	$ 0.27	$ 0.57	$ 0.52
Weighted average common shares outstanding:
Basic (in shares)	62,549	60,712	61,730	60,386
Diluted (in shares)	62,553	60,714	61,734	60,388

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Securities - Summary of held to maturity securities in unrealized loss position (Details 1) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of held to maturity securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 130,980	$ 126,514	$ 194,724
Unrealized Loss, Less than 12 Months	1,268	917	1,898
Fair Value, 12 Months or More	19,359	17,053	2,955
Unrealized Loss, 12 Months or More	425	337	119
Fair Value, Total	150,339	143,567	197,679
Unrealized Loss, Total	1,693	1,254	2,017
Mortgage-backed securities
Summary of held to maturity securities in an unrealized loss position
Fair Value, Less than 12 Months	130,980	126,514	194,724
Unrealized Loss, Less than 12 Months	1,268	917	1,898
Fair Value, 12 Months or More	19,359	17,053	2,955
Unrealized Loss, 12 Months or More	425	337	119
Fair Value, Total	150,339	143,567	197,679
Unrealized Loss, Total	$ 1,693	$ 1,254	$ 2,017

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Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Held to maturity, fair value (in dollars)	$ 388,066	$ 425,233	$ 458,864
Preferred Stock, Par value (in dollars per share)	$ 1	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	54,414,863	50,178,605	50,058,295
Common stock, shares outstanding	54,414,863	50,178,605	50,058,295
Common stock issuable, shares	413,014	357,983	314,039
Preferred stock Series H
Preferred Stock, Par value (in dollars per share)	$ 1,000
Preferred Stock, Shares Issued	9,992
Preferred Stock, Shares Outstanding	9,992
Non-Voting Common Stock
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, shares authorized	26,000,000	26,000,000	26,000,000
Common stock, shares issued	8,285,516	10,080,787	10,080,787
Common stock, shares outstanding	8,285,516	10,080,787	10,080,787

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Loans and Allowance for Loan Losses - TDRs and pre and post-modification recorded investment (Details 8) - Loans Receivable $ in Thousands	Jun. 30, 2015 USD ($) Contract	Dec. 31, 2014 USD ($) Contract	Jun. 30, 2014 USD ($) Contract
Additional information on troubled debt restructurings
Number of Contracts | Contract	361	352	366
Pre-Modification Outstanding Recorded Investment	$ 92,744	$ 88,246	$ 96,283
Post-Modification Outstanding Recorded Investment	$ 89,876	$ 85,096	$ 90,993
Owner occupied commercial real estate
Additional information on troubled debt restructurings
Number of Contracts | Contract	57	54	52
Pre-Modification Outstanding Recorded Investment	$ 34,845	$ 27,695	$ 28,233
Post-Modification Outstanding Recorded Investment	$ 33,401	$ 26,296	$ 26,670
Income producing commercial real estate
Additional information on troubled debt restructurings
Number of Contracts | Contract	29	31	33
Pre-Modification Outstanding Recorded Investment	$ 15,756	$ 18,094	$ 19,427
Post-Modification Outstanding Recorded Investment	$ 15,681	$ 17,915	$ 18,957
Commercial & industrial
Additional information on troubled debt restructurings
Number of Contracts | Contract	32	32	31
Pre-Modification Outstanding Recorded Investment	$ 3,583	$ 2,848	$ 2,893
Post-Modification Outstanding Recorded Investment	$ 3,583	$ 2,847	$ 2,893
Commercial construction
Additional information on troubled debt restructurings
Number of Contracts | Contract	14	14	15
Pre-Modification Outstanding Recorded Investment	$ 11,174	$ 11,360	$ 11,390
Post-Modification Outstanding Recorded Investment	$ 11,094	$ 11,280	$ 11,213
Commercial
Additional information on troubled debt restructurings
Number of Contracts | Contract	132	131	131
Pre-Modification Outstanding Recorded Investment	$ 65,358	$ 59,997	$ 61,943
Post-Modification Outstanding Recorded Investment	$ 63,759	$ 58,338	$ 59,733
Residential mortgage
Additional information on troubled debt restructurings
Number of Contracts | Contract	165	154	154
Pre-Modification Outstanding Recorded Investment	$ 19,742	$ 18,630	$ 21,008
Post-Modification Outstanding Recorded Investment	$ 19,141	$ 17,836	$ 20,030
Home equity lines of credit
Additional information on troubled debt restructurings
Number of Contracts | Contract	3	2	4
Pre-Modification Outstanding Recorded Investment	$ 560	$ 478	$ 540
Post-Modification Outstanding Recorded Investment	$ 551	$ 478	$ 540
Residential construction
Additional information on troubled debt restructurings
Number of Contracts | Contract	45	48	54
Pre-Modification Outstanding Recorded Investment	$ 6,925	$ 8,962	$ 12,463
Post-Modification Outstanding Recorded Investment	$ 6,284	$ 8,265	$ 10,361
Consumer installment
Additional information on troubled debt restructurings
Number of Contracts | Contract	16	17	23
Pre-Modification Outstanding Recorded Investment	$ 159	$ 179	$ 329
Post-Modification Outstanding Recorded Investment	$ 141	$ 179	$ 329
Indirect auto
Additional information on troubled debt restructurings
Number of Contracts | Contract
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment

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Assets and Liabilities Measured at Fair Value (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

June 30, 2015		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	127,901	$	-	$	-	$	127,901
U.S. Government agencies		-		110,311		-		110,311
State and political subdivisions		-		30,764		-		30,764
Mortgage-backed securities		-		998,116		-		998,116
Corporate bonds		-		206,274		750		207,024
Asset-backed securities		-		466,332		-		466,332
Other		-		1,871		-		1,871
Deferred compensation plan assets		3,429		-		-		3,429
Servicing rights for government guaranteed loans		-		-		3,118		3,118
Derivative financial instruments		-		10,197		11,531		21,728
Total assets	$	131,330	$	1,823,865	$	15,399	$	1,970,594
Liabilities:
Deferred compensation plan liability	$	3,429	$	-	$	-	$	3,429
Derivative financial instruments		-		14,113		18,261		32,374
Total liabilities	$	3,429	$	14,113	$	18,261	$	35,803
December 31, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	105,709	$	-	$	-	$	105,709
U.S. Government agencies		-		36,299		-		36,299
State and political subdivisions		-		20,233		-		20,233
Mortgage-backed securities		-		996,820		-		996,820
Corporate bonds		-		164,878		750		165,628
Asset-backed securities		-		455,928		-		455,928
Other		-		2,117		-		2,117
Deferred compensation plan assets		3,864		-		-		3,864
Servicing rights for government guaranteed loans				-		2,551		2,551
Derivative financial instruments		-		8,337		12,262		20,599
Total assets	$	109,573	$	1,684,612	$	15,563	$	1,809,748
Liabilities:
Deferred compensation plan liability	$	3,864	$	-	$	-	$	3,864
Derivative financial instruments		-		13,018		18,979		31,997
Total liabilities	$	3,864	$	13,018	$	18,979	$	35,861

36

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements 

June 30, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	-	$	15,508	$	-	$	15,508
State and political subdivisions		-		21,815		-		21,815
Mortgage-backed securities		-		1,077,440		-		1,077,440
Corporate bonds		-		175,671		300		175,971
Asset-backed securities		-		448,323		-		448,323
Other		-		2,211		-		2,211
Deferred compensation plan assets		3,715		-		-		3,715
Derivative financial instruments		-		22,024		-		22,024
Total assets	$	3,715	$	1,762,992	$	300	$	1,767,007
Liabilities:
Deferred compensation plan liability	$	3,715	$	-	$	-	$	3,715
Brokered certificates of deposit		-		179,215		-		179,215
Derivative financial instruments		-		36,545		-		36,545
Total liabilities	$	3,715	$	215,760	$	-	$	219,475

Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs

	2015											2014
		Derivative Asset			Derivative Liability			Servicing rights for government guaranteed loans			Securities Available-for- Sale		Securities Available-for- Sale
Three Months Ended June 30,
Balance at beginning of period	$	8,117		$	14,529		$	2,717		$	750	$	350
Additions		-			-			442			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		3,414			3,732			(41	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300
Six Months Ended June 30,
Balance at beginning of period	$	12,262		$	18,979		$	2,551		$	750	$	350
Additions		-			-			632			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		(731	)		(718	)		(65	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300

Schedule of quantitative information about Level 3 fair value measurements for fair value on a recurring basis

Fair Value

Weighted Average

Level 3 Assets

June 30, 2015

December 31, 2014

June 30, 2014

Valuation Technique

Unobservable Inputs

June 30, 2015

December 31, 2014

Servicing Rights for

$

3,118

$

2,551

$

-

Discounted

Discount rate

11.0

%

12.0

%

Government

cash flow

Prepayment Rate

6.98

%

6.70

%

Guaranteed Loans

Corporate Bonds

750

750

300

Indicative bid

Multiple factors, including but not

N/A

N/A

provided by a

limited to, current operations,

broker

financial condition, cash flows, and

recently executed financing

transactions related to the company

Derivative assets

11,531

12,262

-

Dealer Priced

Dealer Priced

N/A

N/A

Derivative liabilities

18,261

18,979

-

Dealer Priced

Dealer Priced

N/A

N/A

Schedule of presentation of united's assets and liabilities measured at fair value on nonrecurring basis

June 30, 2015	Level 1		Level 2		Level 3		Total
Loans	$	-	$	-	$	3,907	$	3,907
December 31, 2014
Loans	$	-	$	-	$	7,317	$	7,317
June 30, 2014
Loans	$	-	$	-	$	8,641	$	8,641

Schedule of carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis

		Carrying		Fair Value Level
June 30, 2015		Amount		Level 1		Level 2		Level 3		Total
Assets:
Securities held to maturity	$	379,757	$	-	$	388,066	$	-	$	388,066
Loans, net		5,103,388		-		-		5,083,619		5,083,619
Mortgage loans held for sale		22,003		-		22,312		-		22,312
Liabilities:
Deposits		6,807,943		-		6,808,029		-		6,808,029
Federal Home Loan Bank advances		385,125		-		385,121		-		385,121
Long-term debt		113,901		-		-		116,307		116,307
December 31, 2014
Assets:
Securities held to maturity		415,267		-		425,233		-		425,233
Loans, net		4,600,500		-		-		4,549,027		4,549,027
Mortgage loans held for sale		13,737		-		14,139		-		14,139
Liabilities:
Deposits		6,326,513		-		6,328,264		-		6,328,264
Federal Home Loan Bank advances		270,125		-		270,125		-		270,125
Long-term debt		129,865		-		-		132,814		132,814
June 30, 2014
Assets:
Securities held to maturity		448,752		-		458,864		-		458,864
Loans, net		4,337,037		-		-		4,275,708		4,275,708
Mortgage loans held for sale		14,918		-		15,157		-		15,157
Liabilities:
Deposits		6,163,545		-		6,152,839		-		6,152,839
Federal Home Loan Bank advances		175,125		-		175,125		-		175,125
Long-term debt		129,865		-		-		132,145		132,145

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Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains, net	$ 13	$ 4,435	$ 1,552	$ 4,652
Time deposit interest expense	(895)	(2,018)	(2,004)	(3,789)
Money market deposit interest expense	806	757	1,479	1,320
Tax benefit (expense)	11,124	9,627	21,517	18,665
Net of tax	17,796	16,357	35,466	31,318
Reclassifications Out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	(551)	2,049	(269)	1,852
Reclassifications Out of Accumulated Other Comprehensive Income | Realized gains on sales of available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains, net	13	4,435	1,552	4,652
Tax benefit (expense)	(5)	(1,725)	(603)	(1,817)
Net of tax	8	2,710	949	2,835
Reclassifications Out of Accumulated Other Comprehensive Income | Amortization of (losses) gains included in net income on available-for-sale securities transferred to held to maturity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment securities interest revenue	(289)	(409)	(773)	(739)
Tax benefit (expense)	105	154	287	277
Net of tax	$ (184)	(255)	$ (486)	(462)
Reclassifications Out of Accumulated Other Comprehensive Income | Gains included in net income on derivative financial instruments accounted for as cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Time deposit interest expense		$ (350)		$ (447)
Deposits in banks and short-term investments interest revenue	$ (30)		$ (78)
Money market deposit interest expense	(146)	$ (24)	(265)	$ (24)
Federal Home Loan Bank advances interest expense	(279)		(537)
Total before tax	(455)	$ (573)	(880)	$ (670)
Tax benefit (expense)	177	223	342	261
Net of tax	(278)	(350)	(538)	(409)
Reclassifications Out of Accumulated Other Comprehensive Income | Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(159)	(92)	(318)	(183)
Tax benefit (expense)	62	36	124	71
Net of tax	(97)	(56)	(194)	(112)
Reclassifications Out of Accumulated Other Comprehensive Income | Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | Salaries and employee benefits expense
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Prior service cost	(91)	$ (92)	(182)	$ (183)
Actuarial losses	$ (68)		$ (136)

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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

The income tax provision for the three and six months ended June 30, 2015 was $11.1 million and $21.5 million, respectively, which represents effective tax rates of 38.4% and 37.7%, respectively, for each period. The income tax provision for the three and six months ended June 30, 2014 was $9.63 million and $18.7 million, respectively, which represents effective tax rates of 37.0% for each period. At June 30, 2015, December 31, 2014 and June 30, 2014, United maintained a valuation allowance on its net deferred tax asset of $4.43 million, $4.12 million and $4.10 million, respectively. Management assesses the valuation allowance recorded against its net deferred tax asset at each reporting period. The determination of whether a valuation allowance for its net deferred tax asset is appropriate is subject to considerable judgment and requires an evaluation of all the positive and negative evidence.

United evaluated the need for a valuation allowance at June 30, 2015. Based on the assessment of all the positive and negative evidence, management concluded that it is more likely than not that nearly all of its net deferred tax asset will be realized based upon future taxable income. The remaining valuation allowance of $4.43 million is related to specific state income tax credits that have short carryforward periods and are expected to expire unused.

The valuation allowance could fluctuate in future periods based on the assessment of the positive and negative evidence. Management’s conclusion at June 30, 2015 that it was more likely than not that United’s net deferred tax asset of $196 million will be realized is based upon management’s estimate of future taxable income. Management’s estimate of future taxable income is based on internal forecasts that consider historical performance, various internal estimates and assumptions, as well as certain external data all of which management believes to be reasonable although inherently subject to significant judgment. If actual results differ significantly from the current estimates of future taxable income, even if caused by adverse macro-economic conditions, the valuation allowance may need to be increased for some or all of its net deferred tax asset. Such an increase to the net deferred tax asset valuation allowance could have a material adverse effect on United’s financial condition and results of operations.

United is subject to income taxation in the United States and various state jurisdictions. United’s federal and state income tax returns are filed on a consolidated basis. Currently, no years for which United filed a federal income tax return are under examination by the IRS, and there are no state tax examinations currently in progress. United is no longer subject to income tax examinations from state and local income tax authorities for years before 2011. Although United is unable to determine the ultimate outcome of future examinations, United believes that the liability recorded for uncertain tax positions is appropriate.

At June 30, 2015, December 31, 2014 and June 30, 2014, unrecognized income tax benefits totaled $4.38 million, $4.20 million and $4.69 million, respectively.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of contractual amount of off-balance sheet instruments

	June 30, 2015		December 31, 2014		June 30, 2014
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,047,970	$	878,160	$	797,068
Letters of credit		21,726		19,861		20,682

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15 – Commitments and Contingencies

United is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement United has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. United uses the same credit policies in making commitments and conditional obligations as it uses for underwriting on-balance sheet instruments. In most cases, collateral or other security is required to support financial instruments with credit risk.

The following table summarizes, as of June 30, 2015, December 31, 2014 and June 30, 2014, the contractual amount of off-balance sheet instruments (in thousands).

	June 30, 2015		December 31, 2014		June 30, 2014
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,047,970	$	878,160	$	797,068
Letters of credit		21,726		19,861		20,682

United, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on United’s financial position or results of operations.

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Earnings Per Share (Detail Textuals) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Class of Stock [Line Items]
Number of common stock called by warrants	219,909	219,909
Exercise of price warrants	$ 61.40	$ 61.40
Fletcher International Ltd
Class of Stock [Line Items]
Number of common stock called by warrants		1,411,765
Exercise of price warrants		$ 21.25
Employees
Class of Stock [Line Items]
Common shares issuable upon exercise of stock options granted	256,102	316,343
Weighted average exercise price of options exercised to issue common shares	$ 90.25	$ 96.22
Restricted Stock
Class of Stock [Line Items]
Vesting of restricted stock awards	765,061	973,467

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Series B Preferred Stock	Series D Preferred Stock	Series H Preferred Stock	Non-Voting Common Stock	Common Stock	Common Stock Issuable	Capital Surplus	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2013	$ 105,000	$ 16,613		$ 13,188	$ 46,243	$ 3,930	$ 1,078,676	$ (448,091)	$ (19,844)	$ 795,715
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income								31,757		31,757
Other comprehensive income									3,828	3,828
Redemption of Series B preferred stock (105,000 shares)	$ (105,000)									(105,000)
Redemption of Series D preferred stock (16,613 shares)		$ (16,613)								(16,613)
Common stock issued at market (640,000 shares)					640		11,566			12,206
Common stock issued to dividend reinvestment plan and to employee benefit plans (19,299 and 7,661 shares for June 30, 2014 and June 30, 2015 respectively)					19		309			328
Conversion of non-voting common stock to voting (3,107,419 shares and 1,795,271 shares for June 30, 2014 and June 30, 2015)				(3,107)	3,107
Amortization of stock option and restricted stock awards							2,228			2,228
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (40,751 shares issued, 72,797 shares deferred and 60,698 shares issued, 59,685 shares deferred for June 30, 2014 and June 30, 2015 respectively)					41	749	(1,140)			(350)
Deferred compensation plan, net, including dividend equivalents						119				119
Shares issued from deferred compensation plan (7,481 and 14,125 shares for June 30, 2014 and June 30, 2015 respectively)					8	(149)	141
Common stock dividends ($.03 and $.10 per share for June 30, 2014 and June 30, 2015)								(1,810)		(1,810)
Preferred stock dividends:
Series B								(159)		(159)
Series D								(280)		(280)
Balance at Jun. 30, 2014				10,081	50,058	4,649	1,091,780	(418,583)	(16,016)	721,969
Balance at Dec. 31, 2014				10,081	50,178	5,168	1,080,508	(387,568)	(18,790)	739,577
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income								35,483		35,483
Other comprehensive income									1,822	1,822
Common stock issued to dividend reinvestment plan and to employee benefit plans (19,299 and 7,661 shares for June 30, 2014 and June 30, 2015 respectively)					8		122			130
Conversion of non-voting common stock to voting (3,107,419 shares and 1,795,271 shares for June 30, 2014 and June 30, 2015)				(1,795)	1,795
Common and preferred stock issued for acquisition (2,358,503 common shares and 9,992 preferred shares)			$ 9,992		2,359		41,533			53,884
Amortization of stock option and restricted stock awards							2,178			2,178
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (40,751 shares issued, 72,797 shares deferred and 60,698 shares issued, 59,685 shares deferred for June 30, 2014 and June 30, 2015 respectively)					61	852	(1,294)			(381)
Deferred compensation plan, net, including dividend equivalents						190	(1)			189
Shares issued from deferred compensation plan (7,481 and 14,125 shares for June 30, 2014 and June 30, 2015 respectively)					14	(139)	125
Common stock dividends ($.03 and $.10 per share for June 30, 2014 and June 30, 2015)								(6,192)		(6,192)
Tax on option exercise and restricted stock vesting							559			559
Preferred stock dividends:
Series H								(17)		(17)
Balance at Jun. 30, 2015			$ 9,992	$ 8,286	$ 54,415	$ 6,071	$ 1,123,730	$ (358,294)	$ (16,968)	$ 827,232

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Consolidated Statement of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Investment securities tax exemption	$ 181	$ 193	$ 339	$ 381

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Reclassifications Out of Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2015

Reclassifications Out Of Accumulated Other Comprehensive Income [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income

Note 8 – Reclassifications Out of Accumulated Other Comprehensive Income

The following table presents the details regarding amounts reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2015 and 2014 (in thousands). 

	Amounts Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other	For the Three Months Ended June 30,						For the Six Months Ended June 30,						Affected Line Item in the Statement
Comprehensive Income Components	2015			2014			2015			2014			Where Net Income is Presented
Realized gains on sales of available-for-sale securities:
	$	13		$	4,435		$	1,552		$	4,652		Securities gains, net
		(5	)		(1,725	)		(603	)		(1,817	)	Tax expense
	$	8		$	2,710		$	949		$	2,835		Net of tax
Amortization of (losses) gains included in net income on available-for-sale securities transferred to held to maturity:
	$	(289	)	$	(409	)	$	(773	)	$	(739	)	Investment securities interest revenue
		105			154			287			277		Tax benefit (expense)
	$	(184	)	$	(255	)	$	(486	)	$	(462	)	Net of tax
Gains included in net income on derivative financial instruments accounted for as cash flow hedges:
Effective portion of interest rate contracts	$	-		$	(350	)	$	-		$	(447	)	Time deposit interest expense
Amortization of losses on de-designated positions		(30	)		-			(78	)		-		Deposits in banks and short-term investmens in interest revenue
Amortization of losses on de-designated positions		(146	)		(24	)		(265	)		(24	)	Money market deposit interest expense
Amortization of losses on de-designated positions		(279	)		-			(537	)		-		Federal Home Loan Bank advances interest expense
Amortization of losses on de-designated positions		-			(199	)		-			(199	)	Time deposit interest expense
		(455	)		(573	)		(880	)		(670	)	Total before tax
		177			223			342			261		Tax or benefit (expense)
	$	(278	)	$	(350	)	$	(538	)	$	(409	)	Net of tax
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan
Prior service cost	$	(91	)	$	(92	)	$	(182	)	$	(183	)	Salaries and employee benefits expense
Actuarial losses		(68	)		-			(136	)		-		Salaries and employee benefits expense
		(159	)		(92	)		(318	)		(183	)	Total before tax
		62			36			124			71		Tax benefit
	$	(97	)	$	(56	)	$	(194	)	$	(112	)	Net of tax
Total reclassifications for the period	$	(551	)	$	2,049		$	(269	)	$	1,852		Net of tax

Amounts shown above in parentheses reduce earnings

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	UNITED COMMUNITY BANKS INC
Entity Central Index Key	0000857855
Trading Symbol	ucbi
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Voting Common Stock
Entity Common Stock, Shares Outstanding		54,416,549
Non-Voting Common Stock
Entity Common Stock, Shares Outstanding		8,285,516

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 – Earnings Per Share

United is required to report on the face of the consolidated statement of income, earnings per common share with and without the dilutive effects of potential common stock issuances from instruments such as options, convertible securities and warrants. Basic earnings per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings per common share.

During the three and six months ended June 30, 2015 and 2014, United accrued dividends on preferred stock as shown in the following table (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Series H - 1% until March 15, 2016, subject to change based on Qualified Small Business Lending, 9% thereafter	$	17	$	-	$	17	$	-
Series B - 5% fixed until December 6, 2013, 9% thereafter		-		-		-		159
Series D - LIBOR plus 9.6875%, resets quarterly		-		-		-		280
Total preferred stock dividends	$	17	$	-	$	17	$	439

 All preferred stock dividends are payable quarterly.

The preferred stock dividends were subtracted from net income in order to arrive at net income available to common shareholders.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 (in thousands, except per share data). 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income available to common shareholders	$	17,796	$	16,357	$	35,466	$	31,318
Weighted average shares outstanding:
Basic		62,549		60,712		61,730		60,386
Effect of dilutive securities
Stock options		4		2		4		2
Diluted		62,553		60,714		61,734		60,388
Net income per common share:
Basic	$	.28	$	.27	$	.57	$	.52
Diluted	$	.28	$	.27	$	.57	$	.52

At June 30, 2015, United had the following potentially dilutive stock options and warrants outstanding: a warrant to purchase 219,909 shares of common stock at $61.40 per share; 256,102 shares of common stock issuable upon exercise of stock options granted to employees with a weighted average exercise price of $90.25; and 765,061 shares of common stock issuable upon completion of vesting of restricted stock unit awards.

At June 30, 2014, United had the following potentially dilutive stock options and warrants outstanding: a warrant to purchase 219,909 common shares at $61.40 per share originally issued to the U.S. Treasury; 316,343 common shares issuable upon exercise of stock options granted to employees with a weighted average exercise price of $96.22; 973,467 shares issuable upon completion of vesting of restricted stock awards; and warrants to purchase common stock equivalent junior preferred stock that would be convertible into 1,411,765 common shares exercisable at $21.25 per share granted to Fletcher International Ltd. (“Fletcher”) in connection with a 2010 asset purchase and sale agreement. United repurchased the warrant from Fletcher in the fourth quarter of 2014.

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Assets and Liabilities Measured at Fair Value - Assets and liabilities measured at fair value on recurring basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Level 1
Assets:
Total assets	$ 131,330	$ 109,573	$ 3,715
Liabilities:
Total liabilities	3,429	3,864	$ 3,715
Level 1 | U.S. Treasury securities
Assets:
Total assets	$ 127,901	$ 105,709
Level 1 | U.S. Government agencies
Assets:
Total assets
Level 1 | State and political subdivisions
Assets:
Total assets
Level 1 | Mortgage-backed securities
Assets:
Total assets
Level 1 | Corporate bonds
Assets:
Total assets
Level 1 | Asset-backed securities
Assets:
Total assets
Level 1 | Other
Assets:
Total assets
Level 1 | Deferred compensation plan assets
Assets:
Total assets	$ 3,429	$ 3,864	$ 3,715
Level 1 | Servicing rights for government guaranteed loans
Assets:
Total assets
Level 1 | Derivative financial instruments
Assets:
Total assets
Level 1 | Deferred compensation plan liability
Liabilities:
Total liabilities	$ 3,429	$ 3,864	$ 3,715
Level 1 | Brokered certificates of deposit
Liabilities:
Total liabilities
Level 1 | Derivative financial instruments
Liabilities:
Total liabilities
Level 2
Assets:
Total assets	1,823,865	$ 1,684,612	$ 1,762,992
Liabilities:
Total liabilities	$ 14,113	$ 13,018	215,760
Level 2 | U.S. Treasury securities
Assets:
Total assets			15,508
Level 2 | U.S. Government agencies
Assets:
Total assets	$ 110,311	$ 36,299
Level 2 | State and political subdivisions
Assets:
Total assets	30,764	20,233	21,815
Level 2 | Mortgage-backed securities
Assets:
Total assets	998,116	996,820	1,077,440
Level 2 | Corporate bonds
Assets:
Total assets	206,274	164,878	175,671
Level 2 | Asset-backed securities
Assets:
Total assets	466,332	455,928	448,323
Level 2 | Other
Assets:
Total assets	$ 1,871	$ 2,117	$ 2,211
Level 2 | Deferred compensation plan assets
Assets:
Total assets
Level 2 | Servicing rights for government guaranteed loans
Assets:
Total assets
Level 2 | Derivative financial instruments
Assets:
Total assets	$ 10,197	$ 8,337	$ 22,024
Level 2 | Deferred compensation plan liability
Liabilities:
Total liabilities
Level 2 | Brokered certificates of deposit
Liabilities:
Total liabilities			$ 179,215
Level 2 | Derivative financial instruments
Liabilities:
Total liabilities	$ 14,113	$ 13,018	36,545
Level 3
Assets:
Total assets	15,399	15,563	$ 300
Liabilities:
Total liabilities	$ 18,261	$ 18,979
Level 3 | U.S. Treasury securities
Assets:
Total assets
Level 3 | U.S. Government agencies
Assets:
Total assets
Level 3 | State and political subdivisions
Assets:
Total assets
Level 3 | Mortgage-backed securities
Assets:
Total assets
Level 3 | Corporate bonds
Assets:
Total assets	$ 750	$ 750	$ 300
Level 3 | Asset-backed securities
Assets:
Total assets
Level 3 | Other
Assets:
Total assets
Level 3 | Deferred compensation plan assets
Assets:
Total assets
Level 3 | Servicing rights for government guaranteed loans
Assets:
Total assets	$ 3,118	$ 2,551
Level 3 | Derivative financial instruments
Assets:
Total assets	$ 11,531	$ 12,262
Level 3 | Deferred compensation plan liability
Liabilities:
Total liabilities
Level 3 | Brokered certificates of deposit
Liabilities:
Total liabilities
Level 3 | Derivative financial instruments
Liabilities:
Total liabilities	$ 18,261	$ 18,979
Total
Assets:
Total assets	1,970,594	1,809,748	$ 1,767,007
Liabilities:
Total liabilities	35,803	35,861	219,475
Total | U.S. Treasury securities
Assets:
Total assets	127,901	105,709	15,508
Total | U.S. Government agencies
Assets:
Total assets	110,311	36,299
Total | State and political subdivisions
Assets:
Total assets	30,764	20,233	21,815
Total | Mortgage-backed securities
Assets:
Total assets	998,116	996,820	1,077,440
Total | Corporate bonds
Assets:
Total assets	207,024	165,628	175,971
Total | Asset-backed securities
Assets:
Total assets	466,332	455,928	448,323
Total | Other
Assets:
Total assets	1,871	2,117	2,211
Total | Deferred compensation plan assets
Assets:
Total assets	3,429	3,864	3,715
Total | Servicing rights for government guaranteed loans
Assets:
Total assets	3,118	2,551
Total | Derivative financial instruments
Assets:
Total assets	21,728	20,599	22,024
Total | Deferred compensation plan liability
Liabilities:
Total liabilities	3,429	3,864	3,715
Total | Brokered certificates of deposit
Liabilities:
Total liabilities			179,215
Total | Derivative financial instruments
Liabilities:
Total liabilities	$ 32,374	$ 31,997	$ 36,545

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Goodwill and Other Intangible Assets (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 447,000	$ 362,000	$ 689,000	$ 749,000

XML

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statement Of Comprehensive Income (Loss) [Abstract]
Net income, Before-tax Amount	$ 28,937	$ 25,984	$ 57,000	$ 50,422
Net income, Tax (Expense) Benefit	(11,124)	(9,627)	(21,517)	(18,665)
Net income, Net of Tax Amount	17,813	16,357	35,483	31,757
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during period, Before-tax Amount	(10,875)	11,184	3,114	15,053
Unrealized holding gains arising during period, Tax (Expense) Benefit	4,032	(4,216)	(1,273)	(5,657)
Unrealized holding gains arising during period, Net of Tax Amount	(6,843)	6,968	1,841	9,396
Reclassification adjustment for gains included in net income, Before-tax Amount	(13)	(4,435)	(1,552)	(4,652)
Reclassification adjustment for gains included in net income, Tax (Expense) Benefit	5	1,725	603	1,817
Reclassification adjustment for gains included in net income, Net of Tax Amount	(8)	(2,710)	(949)	(2,835)
Net unrealized gains, Before-tax Amount	(10,888)	6,749	1,562	10,401
Net unrealized gains, Tax (Expense) Benefit	4,037	(2,491)	(670)	(3,840)
Net unrealized gains, Net of Tax Amount	(6,851)	4,258	892	6,561
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity, Before-tax Amount	289	409	773	739
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity, Tax (Expense) Benefit	(105)	(154)	(287)	(277)
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity, Net of Tax Amount	184	255	486	462
Net unrealized gains, Before-tax Amount	289	409	773	739
Net unrealized gains, Tax (Expense) Benefit	(105)	(154)	(287)	(277)
Net unrealized gains, Net of Tax Amount	184	255	486	462
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges, Before-tax Amount	455	573	880	670
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges, Tax (Expense) Benefit	(177)	(223)	(342)	(261)
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges, Net of Tax Amount	278	350	538	409
Unrealized losses on derivative financial instruments accounted for as cash flow hedges, Before-tax Amount		(3,547)	(471)	(6,379)
Unrealized losses on derivative financial instruments accounted for as cash flow hedges, Tax (Expense) Benefit		1,380	183	2,482
Unrealized losses on derivative financial instruments accounted for as cash flow hedges, Net of Tax Amount		(2,167)	(288)	(3,897)
Net unrealized losses, Before-tax Amount	455	(2,974)	409	(5,709)
Net unrealized losses, Tax (Expense) Benefit	(177)	1,157	(159)	2,221
Net unrealized losses, Net of Tax Amount	$ 278	(1,817)	$ 250	(3,488)
Net actuarial gain on defined benefit pension plan, Before-tax Amount				296
Net actuarial gain on defined benefit pension plan, Tax (Expense) Benefit				(115)
Net actuarial gain on defined benefit pension plan, Net of Tax Amount				181
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan, Before-tax Amount	$ 159	92	$ 318	183
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan, Tax (Expense) Benefit	(62)	(36)	(124)	(71)
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan, Net of Tax Amount	97	56	194	112
Net defined benefit pension plan activity, Before-tax Amount	159	92	318	479
Net defined benefit pension plan activity, Tax (Expense) Benefit	(62)	(36)	(124)	(186)
Net defined benefit pension plan activity, Net of Tax Amount	97	56	194	293
Total other comprehensive income, Before-tax Amount	(9,985)	4,276	3,062	5,910
Total other comprehensive income, Tax (Expense) Benefit	3,693	(1,524)	(1,240)	(2,082)
Total other comprehensive income, net of tax amount	(6,292)	2,752	1,822	3,828
Comprehensive income, Before-tax Amount	18,952	30,260	60,062	56,332
Comprehensive income, Tax (Expense) Benefit	(7,431)	(11,151)	(22,757)	(20,747)
Comprehensive income, Net of Tax Amount	$ 11,521	$ 19,109	$ 37,305	$ 35,585

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Acquisition

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisition

Note 3 – Acquisitions

Acquisition of MoneyTree Corporation  

On May 1, 2015, United completed the acquisition of MoneyTree Corporation (“MoneyTree”) and its wholly-owned bank subsidiary, First National Bank (“FNB”). FNB operated ten branches in east Tennessee. In connection with the acquisition, United acquired $461 million of assets and assumed $409 million of liabilities and $9.99 million of preferred stock. Total consideration transferred was $54.6 million of common equity and cash. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $13.0 million, which consisted largely of the intangible value of FNB’s business and reputation within the market it serves. None of the goodwill recognized is expected to be deductible for income tax purposes. United will amortize the related core deposit intangible of $4.22 million using the sum-of-the-years-digits method over 6.67 years, which represents the expected useful life of the asset. The deposit premium of $917,000 will be amortized using the effective yield method over 5 years, which represents the weighted average maturity of the underlying deposits.

The fair value of the 2,358,503 common shares issued as part of the consideration paid for MoneyTree was determined on the basis of the closing market price of United’s common shares on the acquisition date. Acquisition-related costs totaled $3.17 million for the three and six months ending June 30, 2015 and were included in operating expenses in the consolidated income statement.

Upon completion of the acquisition, each share of preferred stock issued by MoneyTree as part of the Small Business Lending Fund (“SBLF”) program of the United States Department of Treasury (9,992 shares in the aggregate with a liquidation preference amount of $1,000 per share) was converted automatically into one substantially identical share of preferred stock of the Company. See Note 12 for further detail.

The purchased assets and assumed liabilities were recorded at their acquisition date fair values, and are summarized in the table below (in thousands).  

	As Recorded by Money Tree		Fair Value Adjustments (1)			As Recorded by United
Assets
Cash and cash equivalents	$	55,293	$	-		$	55,293
Securities		127,123		(52	)		127,071
Loans held for sale		1,342		-			1,342
Loans, net		246,816		(2,464	)		244,352
Premises and equipment, net		9,497		3,759			13,256
Bank owned life insurance		11,194		-			11,194
Core deposit intangible		-		4,220			4,220
Other assets		5,462		(1,199	)		4,263
Total assets acquired	$	456,727	$	4,264		$	460,991
Liabilities
Deposits	$	368,833	$	917		$	369,750
Short-term borrowings		15,000		-			15,000
Federal Home Loan Bank advances		22,000		70			22,070
Other liabilities		864		1,742			2,606
Total liabilities assumed		406,697		2,729			409,426
SBLF preferred stock assumed		9,992		-			9,992
Excess of assets acquired over
liabilities and preferred stock assumed	$	40,038
Aggregate fair value adjustments			$	1,535
Consideration transferred
Cash							10,699
Common stock issued (2,358,503 shares)							43,892
Total fair value of consideration transferred							54,591
Goodwill						$	13,018

⁽¹⁾ Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Purchased loans that show evidence of credit deterioration since origination are accounted for pursuant to Accounting Standards Codification (“ASC”) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The following table presents additional information related to the acquired loan portfolio at acquisition date (in thousands): 

	May 1, 2015
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	15,152
Non-accretable difference		3,677
Cash flows expected to be collected		11,475
Accretable yield		1,029
Fair value	$	10,446
Excluded from ASC 310-30:
Fair value	$	233,906
Gross contractual amounts receivable		258,931
Estimate of contractual cash flows not expected to be collected		1,231

United’s operating results for the six months ended June 30, 2015 include the operating results of the acquired assets and assumed liabilities for the 61 days subsequent to the acquisition date of May 1, 2015. Merger-related charges of $3.17 million are recorded in the consolidated statement of income and include incremental costs related to closing the acquisition, including severance, conversion costs and legal and professional fees.

The following table discloses the impact of the merger with MoneyTree (excluding the impact of merger-related expenses) since the acquisition on May 1, 2015 through June 30, 2015. The table also presents certain pro forma information as if MoneyTree had been acquired on January 1, 2014. These results combine the historical results of MoneyTree in United’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not necessarily indicative of what would have occurred had the acquisition taken place on January 1, 2014.

Merger-related costs of $3.17 million from the MoneyTree acquisition have been excluded from the 2015 pro forma information presented below and included in the 2014 pro forma information presented below. Furthermore, no adjustments have been made to the pro forma information to eliminate the pre-acquisition provision for loan losses for the six months ended June 30, 2015 or 2014 of MoneyTree in the amount of $7,000 and $96,000, respectively. No adjustments have been made to reduce the impact of any OREO write downs recognized by MoneyTree in either the six months ended June 30, 2015 or 2014. In addition, expenses related to systems conversions and other costs of integration are expected to be recorded during the second half of 2015. United expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below. The actual results and pro forma information were as follows (in thousands): 

	Revenue		Net Income
Actual MoneyTree from May 1, 2015 - June 30, 2015	$	2,284	$	384
2015 supplemental consolidated pro forma from January 1, 2015 - June 30, 2015		153,322		38,294
2014 supplemental consolidated pro forma from January 1, 2014 - June 30, 2014		137,809		31,080

Acquisition of Palmetto Bancshares, Inc.

On April 22, 2015, United announced that it had reached a definitive agreement to acquire Palmetto Bancshares, Inc. (“Palmetto”) and its wholly-owned bank subsidiary The Palmetto Bank. The Palmetto Bank is the third largest banking institution headquartered in South Carolina with total assets of $1.16 billion, loans of $824 million and deposits of $977 million as of June 30, 2015. It is a 108-year old community bank that serves Upstate South Carolina through 25 branch locations in nine counties along the Interstate 85 corridor. The Palmetto Bank will merge into and operate under the brand of United Community Bank.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Palmetto shareholders will have the right to receive $19.25 in cash or 0.97 shares of United common stock, or any combination thereof, for each share of Palmetto common stock. The cash and stock elections are subject to proration to ensure that 30% of the outstanding shares of Palmetto common stock will be exchanged for cash and 70% of the outstanding shares of Palmetto common stock will be exchanged for shares of United common stock in the merger. Based on United’s ten-day average closing price of $21.21 per share as of July 31, 2015 the aggregate deal value was approximately $262 million.

The merger is expected to close on September 1, 2015, subject to the approval of the shareholders of Palmetto at a special meeting to be held on August 12, 2015 and other customary conditions. All required regulatory approvals have been received.

Acquisition of Business Carolina, Inc.

On June 26, 2014, United completed the acquisition of substantially all of the assets of Business Carolina, Inc., a specialty Small Business Administration (“SBA”) / United States Department of Agriculture (“USDA”) lender headquartered in Columbia, South Carolina. On the closing date, United paid $31.3 million in cash for loans having a fair value on the purchase date of $24.8 million, accrued interest of $83,000, servicing rights with a fair value on the purchase date of $2.13 million, premises and equipment with a fair value on the purchase date of $2.60 million and goodwill in the amount of $1.51 million representing the premium paid over the fair value of the separately identifiable assets and liabilities acquired. The gross contractual amount of loans receivable was $28.0 million as of the acquisition date. United has not identified any material separately identifiable intangible assets resulting from the acquisition.

The loans and servicing assets that were acquired in this transaction were valued by a third party vendor that specializes in the valuations of these government guaranteed related assets. These assets are very illiquid and United does not have the same level of visibility into the inputs that the valuation vendor has. Therefore, United considers those inputs to be level 3 in the ASC 820 hierarchy. For the loans, the valuations were derived by estimating the expected cash flows using a combination of prepayment speed and default estimates. The cash flows are then discounted using the rates implied by observed transactions in the market place.

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Accounting Standards Updates and Recently Adopted Standards

6 Months Ended

Jun. 30, 2015

Accounting Standards Updates [Abstract]

Accounting Standards Updates and Recently Adopted Standards

Note 2 – Accounting Standards Updates and Recently Adopted Standards

In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective for fiscal years beginning after December 15, 2015 and interim periods within those years with early adoption permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. United is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability consistent with debt discounts.  The standard will be effective for the United’s fiscal year beginning after December 15, 2015 and subsequent interim periods. The adoption of ASU 2015-03 is not expected to have a material effect on the United’s consolidated financial statements.

In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by ASC 820. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for fiscal years beginning after December 15, 2015, with retrospective application to all periods presented. Early application is permitted. The adoption of this update is not expected to have a material impact on United’s consolidated financial statements.

In June 2015, the FASB issued ASU 2015-10: Technical Corrections and Improvements. The amendments in this Update cover a wide range of topics in the Codification including guidance clarification and reference corrections, simplification and minor improvements. Transition guidance varies based on the amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon issuance. United retrospectively applied the provisions of ASU 2015-10 during the second quarter of 2015, with no material impact on United’s financial position or results of operations. The adoption of ASU 2015-10 did affect certain disclosures related to nonrecurring fair value measurements as presented in Note 14.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was originally effective for interim and annual periods beginning after December 15, 2016. In July 2015, the FASB voted to delay the effective date of this ASU by one year. United is currently assessing the impact that this guidance will have on its consolidated financial statements, but does not expect the guidance to have a material impact on United’s consolidated financial statements.

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Assets and Liabilities Measured at Fair Value

6 Months Ended

Jun. 30, 2015

Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value

Note 14 – Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, United uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). United has processes in place to review the significant valuation inputs and to reassess how the instruments are classified in the valuation framework.

Fair Value Hierarchy

Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access.

Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. United’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.

Securities Available-for-Sale

Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds, corporate debt securities and asset-backed securities and are valued based on observable inputs that include: quoted market prices for similar assets, quoted market prices that are not in an active market, or other inputs that are observable in the market and can be corroborated by observable market data for substantially the full term of the securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Securities classified as Level 3 are valued based on estimates obtained from broker-dealers and are not directly observable.

Deferred Compensation Plan Assets and Liabilities

Included in other assets in the Consolidated Balance Sheet are assets related to employee deferred compensation plans. The assets associated with these plans are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which mirrors the fair value of the invested assets and is included in other liabilities in the consolidated balance sheet.

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at the lower of cost or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for mortgage loans with similar characteristics.

Loans

United does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, a creditor may measure impairment based on a loan’s observable market price, or the fair value of the collateral if repayment of the loan is dependent upon the sale of the underlying collateral. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with ASC 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the impaired loan as nonrecurring Level 3.

Foreclosed Assets

Foreclosed assets are adjusted to fair value, less cost to sell, upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the foreclosed asset as nonrecurring Level 3.

Derivative Financial Instruments

United uses interest rate swaps and interest rate floors to manage its interest rate risk. The valuation of these instruments is typically determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with the provisions of ASC 820, United incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, United has considered the effect of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although management has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2015, management had assessed the significance of the effect of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. Additionally, in the review of the structured derivative inputs, it was determined that the broker quotes, used as a key valuation input, were not observable consistent with a level 2 disclosure. This resulted in United transferring those derivatives to Level 3 in the ASC 820 leveling disclosures as of December 31, 2014.

Servicing Rights for Government Guaranteed Loans

As United expanded its government guaranteed lending and subsequent loan sales activities, a servicing asset has been recognized (per ASC 860). This asset is recorded at fair value on recognition, and management has elected to carry this asset at fair value for subsequent reporting. Given the nature of the asset, the key valuation inputs are unobservable and management classifies this asset as Level 3.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

June 30, 2015		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	127,901	$	-	$	-	$	127,901
U.S. Government agencies		-		110,311		-		110,311
State and political subdivisions		-		30,764		-		30,764
Mortgage-backed securities		-		998,116		-		998,116
Corporate bonds		-		206,274		750		207,024
Asset-backed securities		-		466,332		-		466,332
Other		-		1,871		-		1,871
Deferred compensation plan assets		3,429		-		-		3,429
Servicing rights for government guaranteed loans		-		-		3,118		3,118
Derivative financial instruments		-		10,197		11,531		21,728
Total assets	$	131,330	$	1,823,865	$	15,399	$	1,970,594
Liabilities:
Deferred compensation plan liability	$	3,429	$	-	$	-	$	3,429
Derivative financial instruments		-		14,113		18,261		32,374
Total liabilities	$	3,429	$	14,113	$	18,261	$	35,803
December 31, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	105,709	$	-	$	-	$	105,709
U.S. Government agencies		-		36,299		-		36,299
State and political subdivisions		-		20,233		-		20,233
Mortgage-backed securities		-		996,820		-		996,820
Corporate bonds		-		164,878		750		165,628
Asset-backed securities		-		455,928		-		455,928
Other		-		2,117		-		2,117
Deferred compensation plan assets		3,864		-		-		3,864
Servicing rights for government guaranteed loans				-		2,551		2,551
Derivative financial instruments		-		8,337		12,262		20,599
Total assets	$	109,573	$	1,684,612	$	15,563	$	1,809,748
Liabilities:
Deferred compensation plan liability	$	3,864	$	-	$	-	$	3,864
Derivative financial instruments		-		13,018		18,979		31,997
Total liabilities	$	3,864	$	13,018	$	18,979	$	35,861

June 30, 2014		Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	-	$	15,508	$	-	$	15,508
State and political subdivisions		-		21,815		-		21,815
Mortgage-backed securities		-		1,077,440		-		1,077,440
Corporate bonds		-		175,671		300		175,971
Asset-backed securities		-		448,323		-		448,323
Other		-		2,211		-		2,211
Deferred compensation plan assets		3,715		-		-		3,715
Derivative financial instruments		-		22,024		-		22,024
Total assets	$	3,715	$	1,762,992	$	300	$	1,767,007
Liabilities:
Deferred compensation plan liability	$	3,715	$	-	$	-	$	3,715
Brokered certificates of deposit		-		179,215		-		179,215
Derivative financial instruments		-		36,545		-		36,545
Total liabilities	$	3,715	$	215,760	$	-	$	219,475

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2015											2014
		Derivative Asset			Derivative Liability			Servicing rights for government guaranteed loans			Securities Available-for- Sale		Securities Available-for- Sale
Three Months Ended June 30,
Balance at beginning of period	$	8,117		$	14,529		$	2,717		$	750	$	350
Additions		-			-			442			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		3,414			3,732			(41	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300
Six Months Ended June 30,
Balance at beginning of period	$	12,262		$	18,979		$	2,551		$	750	$	350
Additions		-			-			632			-		-
Sales and settlements		-			-			-			-		(50	)
Amounts included in earnings - fair value adjustments		(731	)		(718	)		(65	)		-		-
Balance at end of period	$	11,531		$	18,261		$	3,118		$	750	$	300

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

Fair Value

Weighted Average

Level 3 Assets

June 30, 2015

December 31, 2014

June 30, 2014

Valuation Technique

Unobservable Inputs

June 30, 2015

December 31, 2014

Servicing Rights for

$

3,118

$

2,551

$

-

Discounted

Discount rate

11.0

%

12.0

%

Government

cash flow

Prepayment Rate

6.98

%

6.70

%

Guaranteed Loans

Corporate Bonds

750

750

300

Indicative bid

Multiple factors, including but not

N/A

N/A

provided by a

limited to, current operations,

broker

financial condition, cash flows, and

recently executed financing

transactions related to the company

Derivative assets

11,531

12,262

-

Dealer Priced

Dealer Priced

N/A

N/A

Derivative liabilities

18,261

18,979

-

Dealer Priced

Dealer Priced

N/A

N/A

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

United may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These assets are not measured at fair value on a recurring basis, but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment. The following table presents the fair value hierarchy and carrying value of all assets that were still held as of June 30, 2015, December 31, 2014 and June 30, 2014, for which a nonrecurring fair value adjustment was recorded during the periods presented (in thousands).

June 30, 2015	Level 1		Level 2		Level 3		Total
Loans	$	-	$	-	$	3,907	$	3,907
December 31, 2014
Loans	$	-	$	-	$	7,317	$	7,317
June 30, 2014
Loans	$	-	$	-	$	8,641	$	8,641

Loans that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have either been partially charged off or have specific reserves assigned to them. Nonaccrual impaired loans that are collateral dependent are generally written down to 80% of appraised value which considers the estimated costs to sell. Specific reserves are established for impaired loans based on appraised value of collateral or discounted cash flows, although only those specific reserves based on the fair value of collateral are considered nonrecurring fair value adjustments. As discussed in Note 2, United retrospectively adopted ASU 2015-10 Technical Corrections and Improvements during second quarter 2015, which clarified the guidance for disclosure of nonrecurring fair value measurements and has been reflected in the disclosures presented in the table above.

Assets and Liabilities Not Measured at Fair Value

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

United’s cash and cash equivalents and repurchase agreements have short maturities and therefore the carrying value approximates fair value. The fair value of securities available-for-sale equals the balance sheet value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. Because no ready market exists for a significant portion of United’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Off-balance sheet instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial.

The carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis in United’s balance sheet at June 30, 2015, December 31, 2014, and June 30, 2014 are as follows (in thousands). 

		Carrying		Fair Value Level
June 30, 2015		Amount		Level 1		Level 2		Level 3		Total
Assets:
Securities held to maturity	$	379,757	$	-	$	388,066	$	-	$	388,066
Loans, net		5,103,388		-		-		5,083,619		5,083,619
Mortgage loans held for sale		22,003		-		22,312		-		22,312
Liabilities:
Deposits		6,807,943		-		6,808,029		-		6,808,029
Federal Home Loan Bank advances		385,125		-		385,121		-		385,121
Long-term debt		113,901		-		-		116,307		116,307
December 31, 2014
Assets:
Securities held to maturity		415,267		-		425,233		-		425,233
Loans, net		4,600,500		-		-		4,549,027		4,549,027
Mortgage loans held for sale		13,737		-		14,139		-		14,139
Liabilities:
Deposits		6,326,513		-		6,328,264		-		6,328,264
Federal Home Loan Bank advances		270,125		-		270,125		-		270,125
Long-term debt		129,865		-		-		132,814		132,814
June 30, 2014
Assets:
Securities held to maturity		448,752		-		458,864		-		458,864
Loans, net		4,337,037		-		-		4,275,708		4,275,708
Mortgage loans held for sale		14,918		-		15,157		-		15,157
Liabilities:
Deposits		6,163,545		-		6,152,839		-		6,152,839
Federal Home Loan Bank advances		175,125		-		175,125		-		175,125
Long-term debt		129,865		-		-		132,145		132,145

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2015

Derivatives and Hedging Activities [Abstract]

Derivatives and Hedging Activities

Note 10 – Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

United is exposed to certain risks arising from both its business operations and economic conditions. United principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. United manages interest rate risk primarily by managing the amount, sources, and duration of its investment securities portfolio and wholesale funding and through the use of derivative financial instruments. Specifically, United enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. United’s derivative financial instruments are used to manage differences in the amount, timing, and duration of United’s known or expected cash receipts and its known or expected cash payments principally related to United’s loans, investment securities, wholesale borrowings and deposits.

In conjunction with the FASB’s fair value measurement guidance, United made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a gross basis.

The table below presents the fair value of United’s derivative financial instruments as well as their classification on the consolidated balance sheet as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

Derivatives designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2014
Cash flow hedge of money market deposits	Derivative assets	$	-	$	-	$	1,109
Fair value hedge of corporate bonds	Derivative assets		970		-		-
		$	970	$	-	$	1,109
Cash flow hedge of money market deposits	Derivative liabilities	$	-	$	350	$	523
Fair value hedge of brokered CD’s	Derivative liabilities		4,855		5,817		9,857
		$	4,855	$	6,167	$	10,380

Derivatives not designated as hedging instruments under ASC 815
		Fair Value
Interest Rate Products	Balance Sheet Location		June 30, 2015		December 31, 2014		June 30, 2014
Customer swap positions	Derivative assets	$	3,456	$	3,433	$	2,572
Dealer offsets to customer swap positions	Derivative assets		-		128		333
Bifurcated embedded derivatives	Derivative assets		11,531		12,262		12,369
Offsetting positions for de-designated cash flow hedges	Derivative assets		5,771		4,776		5,641
		$	20,758	$	20,599	$	20,915
Customer swap positions	Derivative liabilities	$	3,485	$	129	$	333
Dealer offsets to customer swap positions	Derivative liabilities		-		3,456		2,592
Dealer offsets to bifurcated embedded derivatives	Derivative liabilities		18,261		17,467		17,599
De-designated cash flow hedges	Derivative liabilities		5,773		4,778		5,641
		$	27,519	$	25,830	$	26,165

Derivative contracts that are not accounted for as hedging instruments under ASC 815, Derivatives and Hedging, and are described as “customer derivatives,” are between United and certain commercial loan customers with offsetting positions to dealers under a back-to-back swap program. United also has three interest rate swap contracts that are not designated as hedging instruments but are economic hedges of market linked brokered certificates of deposit. The market linked brokered certificates of deposit contain embedded derivatives that are bifurcated from the host instruments and marked to market through earnings. The marks on the market linked swaps and the bifurcated embedded derivatives tend to move in opposite directions with changes in 90-day LIBOR and therefore provide an effective economic hedge.

Cash Flow Hedges of Interest Rate Risk

United’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, United uses interest rate swaps as part of its interest rate risk management strategy. United’s interest rate swaps designated as cash flow hedges involved the payment of fixed-rate amounts to a counterparty in exchange for United receiving variable-rate payments over the life of the agreements without exchange of the underlying notional amount. United’s cash flow hedges were for the purpose of converting variable rate deposits and wholesale borrowings to the economic equivalent of a fixed rate to protect United in a rising rate environment. At June 30, 2015 United did not have any active cash flow hedges. At December 31, 2014, United had one swap contract outstanding with a total notional amount of $175 million that was designated as a cash flow hedge of indexed money market accounts. At June 30, 2014, United had two swap contracts outstanding with a total notional amount of $275 million that were designated as cash flow hedges of indexed money market accounts. During the second and fourth quarters of 2014, United de-designated swaps with a notional of $500 million and put on offsetting positions which had a similar effect to terminating the positions. In addition, in the first quarter of 2015, United terminated its one remaining cash flow hedge with a notional of $175 million. Changes in United’s balance sheet composition and interest rate risk position made the hedges no longer necessary as protection against rising interest rates. The loss remaining in other comprehensive income on the de-designated swaps is being amortized into earnings over the original term of the swaps as the forecasted transactions that the swaps were originally designated to hedge are still expected to occur.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense when the swaps become effective, as interest payments are made on United’s LIBOR based, variable-rate wholesale borrowings and indexed deposit accounts. United did not recognize any hedge ineffectiveness on active cash flow hedges during the three months ended June 30, 2015 but did recognize $7,000 in hedge ineffectiveness gains in interest expense during the six months ended June 30, 2015. United recognized $50,000 and $85,000, respectively, in hedge ineffectiveness losses in interest expense on active cash flow hedges during the three and six months ended June 30, 2014. United expects that $1.83 million will be reclassified as an increase to deposit interest expense over the next twelve months related to these cash flow hedges.

Fair Value Hedges of Interest Rate Risk

United is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in interest rates. United uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in interest rates. Interest rate swaps designated as fair value hedges of brokered deposits involve the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate swaps designated as fair value hedges of fixed rate investments involve the receipt of variable-rate payments from a counterparty in exchange for United making fixed rate payments over the life of the instrument without the exchange of the underlying notional amount. At June 30, 2015, United had 15 interest rate swaps with an aggregate notional amount of $184 million that were designated as fair value hedges of interest rate risk and were pay-variable / receive-fixed swaps hedging the changes in the fair value of fixed rate brokered time deposits resulting from changes in interest rates. Also at June 30, 2015, United had 1 interest rate swap with a notional of $30 million that was designated as a pay-fixed / receive variable fair value hedge of changes in the fair value of a fixed rate corporate bond. At June 30, 2014, United had 16 interest rate swaps with an aggregate notional amount of $199 million that were designated as fair value hedges of interest rate risk. These contracts were pay-variable / receive-fixed swaps hedging changes in the fair value of fixed rate brokered time deposits resulting from changes in interest rates.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. United includes the gain or loss on the hedged items in the same income statement line item as the offsetting loss or gain on the related derivatives. During the three and six months ended June 30, 2015, United recognized net gains of $207,000 and $170,000, respectively, and during the three and six months ended June 30, 2014, United recognized net losses of $236,000 and $625,000, respectively, related to ineffectiveness in the fair value hedging relationships. United also recognized net reductions of interest expense of $1.13 million and $2.26 million, respectively, for the three and six months ended June 30, 2015 and net reductions of interest expense of $1.22 million and $2.43 million, respectively, for the three and six months ended June 30, 2014 related to United’s fair value hedges of brokered time deposits, which includes net settlements on the derivatives. United recognized reductions of interest revenue on securities during the three and six months ended June 30, 2015 of $146,000 and $220,000, respectively, and reductions of interest revenue on securities during the three and six months ended June 30, 2014 of $425,000 and $955,000 related to United’s fair value hedges of corporate bonds.

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The tables below present the effect of United’s derivative financial instruments on the consolidated statement of operations for the three and six months ended June 30, 2015 and 2014.  

Derivatives in Fair Value Hedging Relationships (in thousands). 

	Location of Gain (Loss) Recognized in Income on	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
	Derivative		2015			2014			2015			2014
Three Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(3,145	)	$	4,262		$	3,287		$	(4,382	)
Fair value hedges of corporate bonds	Interest revenue		1,315			(783	)		(1,250	)		667
		$	(1,830	)	$	3,479		$	2,037		$	(3,715	)
Six Months Ended June 30,
Fair value hedges of brokered CD’s	Interest expense	$	(775	)	$	10,115		$	882		$	(10,416	)
Fair value hedges of corporate bonds	Interest revenue		970			(2,487	)		(907	)		2,163
		$	195		$	7,628		$	(25	)	$	(8,253	)

In certain cases, the estate of deceased brokered certificate of deposit holders may put the certificate of deposit back to the issuing bank at par upon the death of the holder. When these estate puts occur, a gain or loss is recognized for the difference between the fair value and the par amount of the deposits put back. The change in the fair value of brokered time deposits that are being hedged in fair value hedging relationships reported in the table above includes gains and losses from estate puts and such gains and losses are included in the amount of reported ineffectiveness gains or losses.

	Amount of Gain (Loss)  Recognized in Other Comprehensive Income  on Derivative (Effective  Portion)						Gain (Loss) Reclassified from Accumulated  Other Comprehensive Income into Income  (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
	2015			2014			Location	2015			2014			Location	2015			2014
Three Months Ended June 30,
Interest rate swaps	$	-		$	(3,547	)	Interest expense	$	(455	)	$	(573	)	Interest expense	$	-		$	(50	)
Six Months Ended June 30,
Interest rate swaps	$	(471	)	$	(6,379	)	Interest expense	$	(880	)	$	(670	)	Interest expense	$	(7	)	$	(85	)

Credit-Risk-Related Contingent Features

United manages its credit exposure on derivatives transactions by entering into a bilateral credit support agreement with each counterparty. The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements, including the minimum thresholds, vary by counterparty. As of June 30, 2015, collateral totaling $35.5 million was pledged toward derivatives in a liability position.

United’s agreements with each of its derivative counterparties contain a provision where if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivatives counterparties also include provisions that if not met, could result in United being declared in default. United has agreements with certain of its derivative counterparties that contain a provision where if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would be required to settle its obligations under the agreements.

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Assets and Liabilities Measured at Fair Value - Fair values for other financial instruments that are not measured at fair value on recurring basis (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Assets:
Securities held to maturity	$ 388,066	$ 425,233	$ 458,864
Loans, net	$ 5,103,388	$ 4,600,500	$ 4,337,037
Level 1
Assets:
Securities held to maturity
Loans, net
Mortgage loans held for sale
Liabilities:
Deposits
Federal Home Loan Bank advances
Long-term debt
Level 2
Assets:
Securities held to maturity	$ 388,066	$ 425,233	$ 458,864
Loans, net
Mortgage loans held for sale	$ 22,312	$ 14,139	$ 15,157
Liabilities:
Deposits	6,808,029	6,328,264	6,152,839
Federal Home Loan Bank advances	$ 385,121	$ 270,125	$ 175,125
Long-term debt
Level 3
Assets:
Securities held to maturity
Loans, net	$ 5,083,619	$ 4,549,027	$ 4,275,708
Mortgage loans held for sale
Liabilities:
Deposits
Federal Home Loan Bank advances
Long-term debt	$ 116,307	$ 132,814	$ 132,145
Total
Assets:
Securities held to maturity	388,066	425,233	458,864
Loans, net	5,083,619	4,549,027	4,275,708
Mortgage loans held for sale	22,312	14,139	15,157
Liabilities:
Deposits	6,808,029	6,328,264	6,152,839
Federal Home Loan Bank advances	385,121	270,125	175,125
Long-term debt	116,307	132,814	132,145
Carrying Amount
Assets:
Securities held to maturity	379,757	415,267	448,752
Loans, net	5,103,388	4,600,500	4,337,037
Mortgage loans held for sale	22,003	13,737	14,918
Liabilities:
Deposits	6,807,943	6,326,513	6,163,545
Federal Home Loan Bank advances	385,125	270,125	175,125
Long-term debt	$ 113,901	$ 129,865	$ 129,865

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2015

Loans and Allowance For Loan Losses [Abstract]

Loans and Allowance for Loan Losses

Note 6 – Loans and Allowance for Credit Losses

Major classifications of loans as of June 30, 2015, December 31, 2014 and June 30, 2014, are summarized as follows (in thousands).

	June 30, 2015			December 31, 2014			June 30, 2014
Owner occupied commercial real estate	$	1,265,783		$	1,163,480		$	1,163,327
Income producing commercial real estate		688,768			598,537			598,318
Commercial & industrial		792,791			710,256			554,089
Commercial construction		237,820			196,030			159,755
Total commercial		2,985,162			2,668,303			2,475,489
Residential mortgage		935,646			865,789			860,525
Home equity lines of credit		490,753			465,872			451,435
Residential construction		298,920			298,627			301,737
Consumer installment		105,931			104,899			105,160
Indirect auto		357,105			268,629			215,939
Total loans		5,173,517			4,672,119			4,410,285
Less allowance for loan losses		(70,129	)		(71,619	)		(73,248	)
Loans, net	$	5,103,388		$	4,600,500		$	4,337,037

At June 30, 2015, December 31, 2014 and June 30, 2014, loans totaling $2.42 billion, $2.35 billion and $2.09 billion, respectively, were pledged as collateral to secure FHLB advances and other contingent funding sources.

At June 30, 2015, the carrying value and unpaid principal balance of purchased credit impaired loans accounted for under ASC 310-30 was $10.1 million and $13.6 million, respectively. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC Topic 310-30 for the three and six months ended June 30, 2015 (in thousands): 

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
Balance at beginning of period
	$	-		$	-
Additions due to acquisitions		1,029			1,029
Accretion		(83	)		(83	)
Balance at end of period	$	946		$	946

In addition to the accretable yield on loans accounted for under ASC Topic 310-30, the fair value adjustments on purchased loans outside the scope of ASC Topic 310-30 are also accreted to interest income over the life of the loans. At June 30, 2015, the remaining accretable fair value mark on loans not accounted for under ASC Topic 310-30 was $2.60 million.

The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. The allowance for unfunded commitments is included in other liabilities in the consolidated balance sheet. Combined, the allowance for loan losses and allowance for unfunded commitments are referred to as the allowance for credit losses.

The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2015 and 2014 (in thousands). 

	2015												2014
Three Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated		Provision			Ending Balance
Owner occupied commercial real estate	$	14,952	$	(363	)	$	78	$	1,672		$	16,339	$	20,292	$	(918	)	$	2,753	$	-	$	(4,323	)	$	17,804
Income producing commercial real estate		9,655		(74	)		350		(1,731	)		8,200		10,926		(632	)		197		-		1,270			11,761
Commercial & industrial		3,442		(162	)		789		659			4,728		4,247		(1,012	)		350		-		300			3,885
Commercial construction		5,335		(147	)		51		(344	)		4,895		3,977		(131	)		-		-		221			4,067
Residential mortgage		20,138		(1,109	)		322		(299	)		19,052		15,967		(2,800	)		292		-		3,304			16,763
Home equity lines of credit		4,321		(348	)		26		1,480			5,479		6,120		(624	)		158		-		684			6,338
Residential construction		10,210		(499	)		392		(766	)		9,337		12,181		(1,946	)		275		-		698			11,208
Consumer installment		713		(349	)		187		137			688		717		(455	)		391		-		(54	)		599
Indirect auto		1,241		(130	)		8		292			1,411		796		(89	)		16		-		100			823
Total allowance for loan losses		70,007		(3,181	)		2,203		1,100			70,129		75,223		(8,607	)		4,432		-		2,200			73,248
Allowance for unfunded commitments		2,780		-			-		(200	)		2,580		2,165		-			-		-		-			2,165
Total allowance for credit losses	$	72,787	$	(3,181	)	$	2,203	$	900		$	72,709	$	77,388	$	(8,607	)	$	4,432	$	-	$	2,200		$	75,413

Six Months Ended June 30,	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance		Beginning Balance		Charge-Offs			Recoveries		Allocation of Unallocated			Provision			Ending Balance
Owner occupied commercial real estate	$	16,041	$	(731	)	$	89	$	940		$	16,339	$	17,164	$	(1,284	)	$	2,843	$	1,278		$	(2,197	)	$	17,804
Income producing commercial real estate		10,296		(322	)		357		(2,131	)		8,200		7,174		(837	)		197		688			4,539			11,761
Commercial & industrial		3,255		(631	)		917		1,187			4,728		6,527		(1,975	)		891		318			(1,876	)		3,885
Commercial construction		4,747		(169	)		51		266			4,895		3,669		(132	)		-		388			142			4,067
Residential mortgage		20,311		(1,687	)		484		(56	)		19,052		15,446		(4,381	)		357		1,452			3,889			16,763
Home equity lines of credit		4,574		(421	)		40		1,286			5,479		5,528		(1,627	)		168		391			1,878			6,338
Residential construction		10,603		(1,639	)		471		(98	)		9,337		12,532		(2,251	)		369		1,728			(1,170	)		11,208
Consumer installment		731		(675	)		563		69			688		1,353		(1,131	)		718		-			(341	)		599
Indirect auto		1,061		(258	)		21		587			1,411		1,126		(166	)		27		-			(164	)		823
Unallocated		-		-			-		-			-		6,243		-			-		(6,243	)		-			-
Total allowance for loan losses		71,619		(6,533	)		2,993		2,050			70,129		76,762		(13,784	)		5,570		-			4,700			73,248
Allowance for unfunded commitments		1,930		-			-		650			2,580		2,165		-			-		-			-			2,165
Total allowance for credit losses	$	73,549	$	(6,533	)	$	2,993	$	2,700		$	72,709	$	78,927	$	(13,784	)	$	5,570	$	-		$	4,700		$	75,413

In the first quarter of 2014, United modified its allowance for loan losses methodology to incorporate a loss emergence period. The increase in precision resulting from the use of the loss emergence period led to the full allocation of the portion of the allowance that had previously been unallocated.

The following table represents the recorded investment in loans by portfolio segment and the balance of the allowance for loan losses assigned to each segment based on the method of evaluating the loans for impairment as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

	June 30, 2015								December 31, 2014						June 30, 2014
Allowance for Loan Losses	Individually evaluated for impairment		Collectively evaluated for impairment		Purchased with deteriorated credit quality		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending Balance
Owner occupied commercial real estate	$	1,592	$	14,747	$	-	$	16,339	$	2,737	$	13,304	$	16,041	$	2,483	$	15,321	$	17,804
Income producing commercial real estate		782		7,418		-		8,200		1,917		8,379		10,296		1,404		10,357		11,761
Commercial & industrial		137		4,591		-		4,728		15		3,240		3,255		399		3,486		3,885
Commercial construction		530		4,365		-		4,895		729		4,018		4,747		412		3,655		4,067
Residential mortgage		3,107		15,945		-		19,052		3,227		17,084		20,311		3,117		13,646		16,763
Home equity lines of credit		26		5,453		-		5,479		47		4,527		4,574		115		6,223		6,338
Residential construction		506		8,831		-		9,337		1,192		9,411		10,603		1,054		10,154		11,208
Consumer installment		6		682		-		688		18		713		731		33		566		599
Indirect auto		-		1,411		-		1,411		-		1,061		1,061		-		823		823
Total allowance for loan losses		6,686		63,443		-		70,129		9,882		61,737		71,619		9,017		64,231		73,248
Allowance for unfunded commitments		-		2,580		-		2,580		-		1,930		1,930		-		2,165		2,165
Total allowance for credit losses	$	6,686	$	66,023	$	-	$	72,709	$	9,882	$	63,667	$	73,549	$	9,017	$	66,396	$	75,413
Loans Outstanding
Owner occupied commercial real estate	$	37,547	$	1,225,779	$	2,457	$	1,265,783	$	34,654	$	1,128,826	$	1,163,480	$	31,952	$	1,131,375	$	1,163,327
Income producing commercial real estate		21,926		661,988		4,854		688,768		24,484		574,053		598,537		26,045		572,273		598,318
Commercial & industrial		5,023		787,247		521		792,791		3,977		706,279		710,256		3,641		550,448		554,089
Commercial construction		12,123		223,631		2,066		237,820		12,321		183,709		196,030		11,214		148,541		159,755
Residential mortgage		20,538		914,981		127		935,646		18,775		847,014		865,789		20,455		840,070		860,525
Home equity lines of credit		551		490,132		70		490,753		478		465,394		465,872		540		450,895		451,435
Residential construction		8,631		290,289		-		298,920		11,604		287,023		298,627		13,320		288,417		301,737
Consumer installment		141		105,790		-		105,931		179		104,720		104,899		329		104,831		105,160
Indirect auto		-		357,105		-		357,105		-		268,629		268,629		-		215,939		215,939
Total loans	$	106,480	$	5,056,942	$	10,095	$	5,173,517	$	106,472	$	4,565,647	$	4,672,119	$	107,496	$	4,302,789	$	4,410,285

Excluding loans accounted for under ASC Topic 310-30, management considers all loans that are on nonaccrual with a balance of $500,000 or greater and all troubled debt restructurings (“TDRs”) to be impaired. In addition, management reviews all accruing substandard loans greater than $2 million to determine if the loan is impaired. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the original contractual terms of the loan will not be collected. All TDRs are considered impaired regardless of accrual status. Impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. For TDRs less than $500,000, impairment is estimated based on the average impairment of TDRs greater than $500,000 by loan category. For loan types that do not have TDRs greater than $500,000, the average impairment for all TDR loans is used to quantify the amount of required specific reserve. A specific reserve is established for impaired loans for the amount of calculated impairment. Interest payments received on impaired nonaccrual loans are applied as a reduction of the outstanding principal balance. For impaired loans not on nonaccrual status, interest is accrued according to the terms of the loan agreement. Loans are evaluated for impairment quarterly and specific reserves are established in the allowance for loan losses for any measured impairment.

Each quarter, United’s management prepares an analysis of the allowance for credit losses to determine the appropriate balance that measures and quantifies the amount of probable incurred losses in the loan portfolio and unfunded loan commitments. The allowance is comprised of specific reserves on individually impaired loans, which are determined as described above, and general reserves which are determined based on historical loss experience as adjusted for current trends and economic conditions multiplied by a loss emergence period factor. Management uses eight quarters of historical loss experience to determine the loss factors to be used in the reserve calculation for loans evaluated in the aggregate. Eight quarters has been determined to be an appropriate time period as it is recent enough to be relevant to current conditions and covers a length of time sufficient to minimize distortions caused by nonrecurring and unusual activity that might otherwise influence a shorter time period. In previous years, the loss rates were weighted toward more recent quarters by multiplying each quarter’s annualized historical net charge-off rate by 1 through 8, with 8 representing the most recent quarter and 1 representing the oldest quarter. Management adopted this method of weighting quarterly loss rates to capture the rapidly deteriorating credit conditions in its loss factors during the financial crisis. In the first quarter of 2014, in light of stabilizing credit conditions, management concluded that it was appropriate to apply a more level weighting to capture the full range and impacts of credit losses experienced during the most recent economic and credit cycle. For the four quarters of 2014, management applied a weighting factor of 1.75 to the most recent four quarters and a weighting of 1.00 for the four oldest quarters. Beginning with the first quarter of 2015, management began applying equal weight to all eight quarters to capture the full range of the loss cycle. Management believes the current weightings are more appropriate to measure the probable losses incurred within the loan portfolio.

Also, beginning in the first quarter of 2014, management updated its method for measuring the loss emergence period in the calculation of the allowance for credit losses. The rapidly deteriorating credit conditions during the peak of the credit cycle shortened the length of time between management’s estimation of the incurrence of a loss and its recognition as a charge-off. In most cases, the loss emergence period was within a twelve month period which made the use of annualized loss factors appropriate for measuring the amount of incurred yet unconfirmed credit losses within the loan portfolio. As United has moved out beyond the peak of the financial crisis, management has observed that the loss emergence period has extended. Management calculates the loss emergence period for each pool of loans based on the average length of time between the date a loan first exceeds 30 days past due and the date the loan is charged off.

The updates to the weightings to the eight quarters of loss history and the update to our estimation of the loss emergence period did not have a material effect on the total allowance for loan losses or the provision for loan losses, however, the revised loss emergence period resulted in the full allocation of the previously unallocated portion of the allowance for loan losses.

On junior lien home equity loans, management has limited ability to monitor the delinquency status of the first lien unless the first lien is also held by United. As a result, management applies the weighted average historical loss factor for this category and appropriately adjusts it to reflect the increased risk of loss from these credits.

Management carefully reviews the resulting loss factors for each category of the loan portfolio and evaluates whether qualitative adjustments are necessary to take into consideration recent credit trends such as increases or decreases in past due, nonaccrual, criticized and classified loans, and other macro environmental factors such as changes in unemployment rates, lease vacancy rates and trends in property values and absorption rates.

Management believes that its method of determining the balance of the allowance for credit losses provides a reasonable and reliable basis for measuring and reporting losses that are incurred in the loan portfolio as of the reporting date.

When a loan officer determines that a loan is uncollectible, he or she is responsible for recommending that the loan be charged off. Full or partial charge-offs may also be recommended by the Collections Department, the Special Assets Department and the Foreclosure/OREO Department. Nonaccrual real estate loans that are collateral dependent are generally charged down to 80% of the appraised value of the underlying collateral at the time they are placed on nonaccrual status.

Commercial and consumer asset quality committees consisting of the Chief Credit Officer, a Senior Risk Officer and the Senior Credit Officers meet monthly to review charge-offs that have occurred during the previous month.

Generally, closed-end retail loans (installment and residential mortgage loans) past due 90 cumulative days are written down to their collateral value less estimated selling costs unless the loan is well secured and in process of collection (within the next 90 days). Open-end (revolving) unsecured retail loans which are past due 90 cumulative days from their contractual due date are generally charged-off.

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

		June 30, 2015						December 31, 2014						June 30, 2014
		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Owner occupied commercial real estate	$	14,138	$	12,939	$	-	$	12,025	$	11,325	$	-	$	14,445	$	12,985	$	-
Income producing commercial real estate		9,696		9,553		-		8,311		8,311		-		12,755		11,808		-
Commercial & industrial		2,785		1,977		-		1,679		1,042		-		1,736		1,710		-
Commercial construction		-		-		-		-		-		-		195		195		-
Total commercial		26,619		24,469		-		22,015		20,678		-		29,131		26,698		-
Residential mortgage		2,395		1,930		-		2,569		1,472		-		3,357		2,849		-
Home equity lines of credit		-		-		-		-		-		-		-		-		-
Residential construction		2,347		2,347		-		4,338		3,338		-		6,168		5,491		-
Consumer installment		-		-		-		-		-		-		-		-		-
Indirect auto		-		-		-		-		-		-		-		-		-
Total with no related allowance recorded		31,361		28,746		-		28,922		25,488		-		38,656		35,038		-
With an allowance recorded:
Owner occupied commercial real estate		26,301		24,608		1,592		24,728		23,329		2,737		20,287		18,967		2,483
Income producing commercial real estate		12,460		12,373		782		16,352		16,173		1,917		14,706		14,237		1,404
Commercial & industrial		3,055		3,046		137		2,936		2,935		15		1,931		1,931		399
Commercial construction		12,203		12,123		530		12,401		12,321		729		11,194		11,019		412
Total commercial		54,019		52,150		3,041		56,417		54,758		5,398		48,118		46,154		4,698
Residential mortgage		19,045		18,608		3,107		17,732		17,303		3,227		18,077		17,606		3,117
Home equity lines of credit		563		551		26		478		478		47		540		540		115
Residential construction		7,291		6,284		506		8,962		8,266		1,192		9,255		7,829		1,054
Consumer installment		163		141		6		179		179		18		329		329		33
Indirect auto		-		-		-		-		-		-		-		-		-
Total with an allowance recorded		81,081		77,734		6,686		83,768		80,984		9,882		76,319		72,458		9,017
Total	$	112,442	$	106,480	$	6,686	$	112,690	$	106,472	$	9,882	$	114,975	$	107,496	$	9,017

Excluding loans accounted for under ASC Topic 310-30, there were no loans more than 90 days past due and still accruing interest at June 30, 2015, December 31, 2014 or June 30, 2014. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. United’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal.

Loans accounted for under ASC Topic 310-30 are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered as performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. Loans accounted for under ASC Topic 310-30 were not classified as nonaccrual at June 30, 2015 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. Therefore, interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all acquired loans being accounted for under ASC Topic 310-30.

The gross additional interest revenue that would have been earned if the loans classified as nonaccrual had performed in accordance with the original terms was approximately $165,000 and $96,000 for the three months ended June 30, 2015 and 2014, respectively and $424,000 and $556,000 for the six months ended June 30, 2015 and 2014, respectively. The gross additional interest revenue that would have been earned for the three and six months ended June 30, 2015 and 2014 had performing TDRs performed in accordance with the original terms is immaterial.

The average balances of impaired loans and income recognized on impaired loans while they were considered impaired are presented below for the three and six months ended June 30, 2015 and 2014 (in thousands).

	2015						2014
Three Months Ended June 30,	Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received		Average Balance		Interest Revenue Recognized During Impairment		Cash Basis Interest Revenue Received
Owner occupied commercial real estate	$	37,985	$	469	$	509	$	31,558	$	403	$	391
Income producing commercial real estate		22,055		273		253		26,415		316		317
Commercial & industrial		5,221		45		89		3,683		40		50
Commercial construction		12,164		117		116		11,340		104		107
Total commercial		77,425		904		967		72,996		863		865
Residential mortgage		20,604		200		203		20,598		228		217
Home equity lines of credit		558		5		5		550		5		6
Residential construction		8,748		128		132		13,762		177		175
Consumer installment		161		3		3		335		6		5
Indirect auto		-		-		-		-		-		-
Total	$	107,496	$	1,240	$	1,310	$	108,241	$	1,279	$	1,268
Six Months Ended June 30,
Owner occupied commercial real estate	$	37,487	$	929	$	968	$	30,334	$	761	$	771
Income producing commercial real estate		21,740		540		529		26,138		628		650
Commercial & industrial		4,622		83		125		4,122		92		101
Commercial construction		12,219		233		237		12,027		216		242
Total commercial		76,068		1,785		1,859		72,621		1,697		1,764
Residential mortgage		21,345		425		436		20,960		457		455
Home equity lines of credit		518		10		10		528		10		12
Residential construction		9,662		248		258		13,400		322		325
Consumer installment		157		6		6		392		12		14
Indirect auto		-		-		-		-		-		-
Total	$	107,750	$	2,474	$	2,569	$	107,901	$	2,498	$	2,570

The following table presents the recorded investment in nonaccrual loans by loan class as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands). 

		Nonaccrual Loans
		June 30, 2015		December 31, 2014		June 30, 2014
Owner occupied commercial real estate	$	4,878	$	4,133	$	2,975
Income producing commercial real estate		883		717		1,032
Commercial & industrial		1,389		1,571		1,102
Commercial construction		59		83		95
Total commercial		7,209		6,504		5,204
Residential mortgage		8,599		8,196		10,201
Home equity lines of credit		940		695		510
Residential construction		1,358		2,006		4,248
Consumer installment		131		134		171
Indirect auto		568		346		390
Total	$	18,805	$	17,881	$	20,724

The following table presents the aging of the recorded investment in past due loans as of June 30, 2015, December 31, 2014 and June 30, 2014 by class of loans (in thousands).

	Loans Past Due								Loans Not
As of June 30, 2015	30 - 59 Days		60 - 89 Days		>90 Days		Total		Past Due		Total
Owner occupied commercial real estate	$	2,789	$	337	$	1,646	$	4,772	$	1,261,011	$	1,265,783
Income producing commercial real estate		726		313		440		1,479		687,289		688,768
Commercial & industrial		810		87		1,278		2,175		790,616		792,791
Commercial construction		626		-		44		670		237,150		237,820
Total commercial		4,951		737		3,408		9,096		2,976,066		2,985,162
Residential mortgage		4,888		1,568		1,615		8,071		927,575		935,646
Home equity lines of credit		1,268		528		279		2,075		488,678		490,753
Residential construction		2,110		269		429		2,808		296,112		298,920
Consumer installment		444		188		23		655		105,276		105,931
Indirect auto		276		132		402		810		356,295		357,105
Total loans	$	13,937	$	3,422	$	6,156	$	23,515	$	5,150,002	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,444	$	1,929	$	1,141	$	4,514	$	1,158,966	$	1,163,480
Income producing commercial real estate		2,322		1,172		-		3,494		595,043		598,537
Commercial & industrial		302		40		1,425		1,767		708,489		710,256
Commercial construction		-		-		66		66		195,964		196,030
Total commercial		4,068		3,141		2,632		9,841		2,658,462		2,668,303
Residential mortgage		5,234		2,931		3,278		11,443		854,346		865,789
Home equity lines of credit		961		303		167		1,431		464,441		465,872
Residential construction		1,172		268		1,395		2,835		295,792		298,627
Consumer installment		607		136		33		776		104,123		104,899
Indirect auto		200		146		141		487		268,142		268,629
Total loans	$	12,242	$	6,925	$	7,646	$	26,813	$	4,645,306	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	448	$	1,239	$	762	$	2,449	$	1,160,878	$	1,163,327
Income producing commercial real estate		2,030		-		242		2,272		596,046		598,318
Commercial & industrial		930		101		405		1,436		552,653		554,089
Commercial construction		116		-		50		166		159,589		159,755
Total commercial		3,524		1,340		1,459		6,323		2,469,166		2,475,489
Residential mortgage		7,372		1,404		3,150		11,926		848,599		860,525
Home equity lines of credit		1,609		193		79		1,881		449,554		451,435
Residential construction		1,246		584		1,331		3,161		298,576		301,737
Consumer installment		677		80		1		758		104,402		105,160
Indirect auto		258		99		193		550		215,389		215,939
Total loans	$	14,686	$	3,700	$	6,213	$	24,599	$	4,385,686	$	4,410,285

As of June 30, 2015, December 31, 2014, and June 30, 2014, $6.24 million, $9.72 million and $8.98 million, respectively, of specific reserves were allocated to customers whose loan terms have been modified in TDRs. United committed to lend additional amounts totaling up to $75,000, $51,000 and $44,000 as of June 30, 2015, December 31, 2014 and June 30, 2014, respectively, to customers with outstanding loans that are classified as TDRs.

The modification of the terms of the TDRs included one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the amortization period that would not otherwise be considered in the current market for new debt with similar risk characteristics; a restructuring of the borrower’s debt into an “A/B note structure” where the A note would fall within the borrower’s ability to pay and the remainder would be included in the B note, or a mandated bankruptcy restructuring.

The following table presents information on TDRs including the number of loan contracts restructured and the pre- and post-modification recorded investment as of June 30, 2015, December 31, 2014 and June 30, 2014 (dollars in thousands).

	June 30, 2015						December 31, 2014						June 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding  Recorded Investment
Owner occupied commercial real estate		57	$	34,845	$	33,401		54	$	27,695	$	26,296		52	$	28,233	$	26,670
Income producing commercial real estate		29		15,756		15,681		31		18,094		17,915		33		19,427		18,957
Commercial & industrial		32		3,583		3,583		32		2,848		2,847		31		2,893		2,893
Commercial construction		14		11,174		11,094		14		11,360		11,280		15		11,390		11,213
Total commercial		132		65,358		63,759		131		59,997		58,338		131		61,943		59,733
Residential mortgage		165		19,742		19,141		154		18,630		17,836		154		21,008		20,030
Home equity lines of credit		3		560		551		2		478		478		4		540		540
Residential construction		45		6,925		6,284		48		8,962		8,265		54		12,463		10,361
Consumer installment		16		159		141		17		179		179		23		329		329
Indirect auto		-		-		-		-		-		-		-		-		-
Total loans		361	$	92,744	$	89,876		352	$	88,246	$	85,096		366	$	96,283	$	90,993

Loans modified under the terms of a TDR during the three and six months ended June 30, 2015 and 2014 are presented in the table below. In addition, the following table presents loans modified under the terms of a TDR that became 90 days or more delinquent during the three and six months ended June 30, 2015 and 2014, that were initially restructured within one year prior to becoming delinquent (dollars in thousands). 

	New Troubled Debt Restructurings for the Three Months Ended June 30,										New Troubled Debt Restructurings for the Six Months Ended June 30,
							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2015										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2015
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2015	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		6	$	8,040	$	7,996		-	$	-		8	$	12,537	$	12,493		-	$	-
Income producing commercial real estate		1		55		54		-		-		3		310		310		-		-
Commercial & industrial		4		992		992		-		-		6		1,180		1,180		-		-
Commercial construction		1		233		233		-		-		1		233		233		-		-
Total commercial		12		9,320		9,275		-		-		18		14,260		14,216		-		-
Residential mortgage		8		523		523		-		-		23		2,121		2,121		-		-
Home equity lines of credit		1		83		74		-		-		1		83		74		-		-
Residential construction		2		163		139		-		-		2		163		139		-		-
Consumer installment		1		25		25		-		-		2		28		28		1		30
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		24	$	10,114	$	10,036		-	$	-		46	$	16,655	$	16,578		1	$	30

							Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended June 30, 2014										Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Six Months Ended June 30, 2014
			Pre-		Post-								Pre-		Post-
			Modification		Modification								Modification		Modification
			Outstanding		Outstanding								Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Number of		Recorded		Recorded		Number of		Recorded
2014	Contracts		Investment		Investment		Contracts		Investment		Contracts		Investment		Investment		Contracts		Investment
Owner occupied commercial real estate		5	$	2,787	$	2,787		-	$	-		7	$	3,392	$	3,392		1	$	104
Income producing commercial real estate		3		1,459		1,459		-		-		5		1,992		1,992		-		-
Commercial & industrial		3		106		106		-		-		4		330		330		2		54
Commercial construction		1		240		240		-		-		2		471		471		-		-
Total commercial		12		4,592		4,592		-		-		18		6,185		6,185		3		158
Residential mortgage		9		1,014		973		2		280		23		2,146		2,105		6		732
Home equity lines of credit		1		36		36		-		-		1		36		36		-		-
Residential construction		3		1,124		1,124		-		-		3		1,124		1,124		-		-
Consumer installment		3		84		84		-		-		5		226		226		-		-
Indirect auto		-		-		-		-		-		-		-		-		-		-
Total loans		28	$	6,850	$	6,809		2	$	280		50	$	9,717	$	9,676		9	$	890

Collateral dependent TDRs that subsequently default and are placed on nonaccrual are charged down to the fair value of the collateral consistent with United’s policy for nonaccrual loans. Impairment on TDRs that are not collateral dependent continues to be measured on discounted cash flows regardless of whether the loan has subsequently defaulted.

As of June 30, 2015, December 31, 2014 and June 30, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands). 

					Substandard				Doubtful /
As of June 30, 2015	Pass		Watch		Performing		Nonaccrual		Loss		Total
Owner occupied commercial real estate	$	1,195,986	$	25,301	$	39,618	$	4,878	$	-	$	1,265,783
Income producing commercial real estate		664,137		4,973		18,775		883		-		688,768
Commercial & industrial		781,820		3,188		6,394		1,389		-		792,791
Commercial construction		232,080		2,426		3,255		59		-		237,820
Total commercial		2,874,023		35,888		68,042		7,209		-		2,985,162
Residential mortgage		886,863		9,605		30,579		8,599		-		935,646
Home equity lines of credit		484,222		-		5,591		940		-		490,753
Residential construction		284,395		3,481		9,686		1,358		-		298,920
Consumer installment		104,958		-		842		131		-		105,931
Indirect auto		355,576		-		961		568		-		357,105
Total loans	$	4,990,037	$	48,974	$	115,701	$	18,805	$	-	$	5,173,517
As of December 31, 2014
Owner occupied commercial real estate	$	1,094,057	$	18,889	$	46,401	$	4,133	$	-	$	1,163,480
Income producing commercial real estate		560,559		16,701		20,560		717		-		598,537
Commercial & industrial		696,805		4,017		7,863		1,571		-		710,256
Commercial construction		190,070		2,311		3,566		83		-		196,030
Total commercial		2,541,491		41,918		78,390		6,504		-		2,668,303
Residential mortgage		814,168		11,594		31,831		8,196		-		865,789
Home equity lines of credit		459,881		-		5,296		695		-		465,872
Residential construction		280,166		5,535		10,920		2,006		-		298,627
Consumer installment		103,383		-		1,382		134		-		104,899
Indirect auto		267,709		-		574		346		-		268,629
Total loans	$	4,466,798	$	59,047	$	128,393	$	17,881	$	-	$	4,672,119
As of June 30, 2014
Owner occupied commercial real estate	$	1,079,629	$	32,501	$	48,222	$	2,975	$	-	$	1,163,327
Income producing commercial real estate		556,223		16,430		24,633		1,032		-		598,318
Commercial & industrial		542,836		4,504		5,647		1,102		-		554,089
Commercial construction		152,894		2,360		4,406		95		-		159,755
Total commercial		2,331,582		55,795		82,908		5,204		-		2,475,489
Residential mortgage		797,725		10,743		41,856		10,201		-		860,525
Home equity lines of credit		443,196		167		7,562		510		-		451,435
Residential construction		276,539		8,078		12,872		4,248		-		301,737
Consumer installment		103,203		10		1,776		171		-		105,160
Indirect auto		214,987		-		562		390		-		215,939
Total loans	$	4,167,232	$	74,793	$	147,536	$	20,724	$	-	$	4,410,285

Risk Ratings

United categorizes commercial loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current industry and economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continual basis. United uses the following definitions for its risk ratings:

Watch. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment.

Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged off.

Consumer Purpose Loans. United applies a pass / fail grading system to all consumer purpose loans. Under the pass / fail grading system, consumer purpose loans meeting the criteria of substandard are classified as “fail” and all other loans are classified as “pass”. For reporting purposes, consumer purpose loans classified as “fail” are reported in the performing substandard or nonaccrual columns and all other consumer purpose loans are reported in the “pass” column. Loan balances reported in the “watch” column for residential mortgage are generally commercial purpose loans secured by the borrower’s residence.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

XML

Loans and Allowance for Loan Losses - Loans modified under terms of TDR (Details 9) - Loans Receivable $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	24	28	46	50
Pre-Modification Outstanding Recorded Investment	$ 10,114	$ 6,850	$ 16,655	$ 9,717
Post Modification Outstanding Recorded Investment	$ 10,036	$ 6,809	$ 16,578	$ 9,676
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract		2	1	9
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment		$ 280	$ 30	$ 890
Owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	6	5	8	7
Pre-Modification Outstanding Recorded Investment	$ 8,040	$ 2,787	$ 12,537	$ 3,392
Post Modification Outstanding Recorded Investment	$ 7,996	$ 2,787	$ 12,493	$ 3,392
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract				1
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment				$ 104
Income producing commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	3	3	5
Pre-Modification Outstanding Recorded Investment	$ 55	$ 1,459	$ 310	$ 1,992
Post Modification Outstanding Recorded Investment	$ 54	$ 1,459	$ 310	$ 1,992
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment
Commercial & industrial
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	4	3	6	4
Pre-Modification Outstanding Recorded Investment	$ 992	$ 106	$ 1,180	$ 330
Post Modification Outstanding Recorded Investment	$ 992	$ 106	$ 1,180	$ 330
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract				2
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment				$ 54
Commercial construction
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	1	1	2
Pre-Modification Outstanding Recorded Investment	$ 233	$ 240	$ 233	$ 471
Post Modification Outstanding Recorded Investment	$ 233	$ 240	$ 233	$ 471
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment
Commercial
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	12	12	18	18
Pre-Modification Outstanding Recorded Investment	$ 9,320	$ 4,592	$ 14,260	$ 6,185
Post Modification Outstanding Recorded Investment	$ 9,275	$ 4,592	$ 14,216	$ 6,185
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract				3
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment				$ 158
Residential mortgage
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	8	9	23	23
Pre-Modification Outstanding Recorded Investment	$ 523	$ 1,014	$ 2,121	$ 2,146
Post Modification Outstanding Recorded Investment	$ 523	$ 973	$ 2,121	$ 2,105
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract		2		6
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment		$ 280		$ 732
Home equity lines of credit
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	1	1	1
Pre-Modification Outstanding Recorded Investment	$ 83	$ 36	$ 83	$ 36
Post Modification Outstanding Recorded Investment	$ 74	$ 36	$ 74	$ 36
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment
Residential construction
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	2	3	2	3
Pre-Modification Outstanding Recorded Investment	$ 163	$ 1,124	$ 163	$ 1,124
Post Modification Outstanding Recorded Investment	$ 139	$ 1,124	$ 139	$ 1,124
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment
Consumer installment
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	3	2	5
Pre-Modification Outstanding Recorded Investment	$ 25	$ 84	$ 28	$ 226
Post Modification Outstanding Recorded Investment	$ 25	$ 84	$ 28	$ 226
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract			1
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment			$ 30
Indirect auto
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract
Pre-Modification Outstanding Recorded Investment
Post Modification Outstanding Recorded Investment
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Number of Contracts | Contract
Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted, Recorded Investment

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Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2015

Offsetting [Abstract]

Balance Sheet Offsetting

Note 4 – Balance Sheet Offsetting

United enters into reverse repurchase agreements in order to invest short-term funds. In addition, United enters into repurchase agreements and reverse repurchase agreements with the same counterparty in transactions commonly referred to as collateral swaps that are subject to master netting agreements under which the balances are netted in the balance sheet in accordance with ASC 210-20, Offsetting.

The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).  

				Gross Amounts  Offset on the  Balance Sheet
	Gross  Amounts of Recognized Assets						Net Asset Balance			Gross Amounts not Offset in the Balance Sheet					Net Amount
June 30, 2015									Financial Instruments			Collateral Received
Repurchase agreements / reverse repurchase agreements	$	330,000		$	(300,000	)	$	30,000	$	-		$	(31,679	)	$	-
Derivatives		21,728			-			21,728		(1,881	)		(3,978	)		15,869
Total	$	351,728		$	(300,000	)	$	51,728	$	(1,881	)	$	(35,657	)	$	15,869
Weighted average interest rate of reverse repurchase agreements		1.17	%

				Gross Amounts Offset on the  Balance  Sheet
	Gross Amounts of Recognized  Liabilities						Net  Liability  Balance		Gross Amounts not Offset in the Balance Sheet						Net Amount
									Financial Instruments			Collateral  Pledged
Repurchase agreements / reverse repurchase agreements	$	300,000		$	(300,000	)	$	-	$	-		$	-		$	-
Derivatives		32,374			-			32,374		(1,881	)		(35,509	)		-
Total	$	332,374		$	(300,000	)	$	32,374	$	(1,881	)	$	(35,509	)	$	-
Weighted average interest rate of repurchase agreements		.31	%

	Gross  Amounts of  Recognized  Assets			Gross  Amounts  Offset on the  Balance Sheet			Net Asset  Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
December 31, 2014									Financial Instruments			Collateral  Received
Repurchase agreements / reverse repurchase agreements	$	395,000		$	(375,000	)	$	20,000	$	-		$	(20,302	)	$	-
Derivatives		20,599			-			20,599		(869	)		(3,716	)		16,014
Total	$	415,599		$	(375,000	)	$	40,599	$	(869	)	$	(24,018	)	$	16,014
Weighted average interest rate of reverse repurchase agreements		1.16	%

	Gross Amounts of  Recognized  Liabilities			Gross Amounts  Offset on the  Balance Sheet			Net  Liability  Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral  Pledged
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		31,997			-			31,997		(869	)		(32,792	)		-
Total	$	406,997		$	(375,000	)	$	31,997	$	(869	)	$	(32,792	)	$	-
Weighted average interest rate of repurchase agreements		.29	%

	Gross  Amounts of  Recognized  Assets			Gross Amounts  Offset on the  Balance  Sheet			Net Asset  Balance
									Gross Amounts not Offset in the Balance Sheet
June 30, 2014									Financial Instruments			Collateral  Received			Net Amount
Repurchase agreements / reverse repurchase agreements	$	420,000		$	(375,000	)	$	45,000	$	-		$	(48,933	)	$	-
Derivatives		22,024			-			22,024		(1,962	)		(162	)		19,900
Total	$	442,024		$	(375,000	)	$	67,024	$	(1,962	)	$	(49,095	)	$	19,900
Weighted average interest rate of reverse repurchase agreements		1.09	%

	Gross  Amounts of  Recognized  Liabilities			Gross  Amounts  Offset on the  Balance  Sheet			Net  Liability  Balance
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral  Pledged			Net Amount
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		36,545			-			36,545		(1,962	)		(35,245	)		-
Total	$	411,545		$	(375,000	)	$	36,545	$	(1,962	)	$	(35,245	)	$	-
Weighted average interest rate of repurchase agreements		.27	%

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Securities

6 Months Ended

Jun. 30, 2015

Investment Securities [Abstract]

Securities

Note 5 – Securities

The amortized cost basis, gross unrealized gains and losses and fair value of securities held-to-maturity at June 30, 2015, December 31, 2014 and June 30, 2014 are as follows (in thousands).

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
As of June 30, 2015	Cost		Gains		Losses		Value
State and political subdivisions	$	47,116	$	3,103	$	-	$	50,219
Mortgage-backed securities (1)		332,641		6,899		1,693		337,847
Total	$	379,757	$	10,002	$	1,693	$	388,066
As of December 31, 2014
State and political subdivisions	$	48,157	$	3,504	$	-	$	51,661
Mortgage-backed securities (1)		367,110		7,716		1,254		373,572
Total	$	415,267	$	11,220	$	1,254	$	425,233
As of June 30, 2014
State and political subdivisions	$	50,669	$	3,872	$	-	$	54,541
Mortgage-backed securities (1)		398,083		8,257		2,017		404,323
Total	$	448,752	$	12,129	$	2,017	$	458,864

⁽¹⁾ All are residential type mortgage-backed securities or U.S.government agency commercial mortgage backed securities.

 The following table summarizes held-to-maturity securities in an unrealized loss position as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Mortgage-backed securities	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
Total unrealized loss position	$	130,980	$	1,268	$	19,359	$	425	$	150,339	$	1,693
As of December 31, 2014
Mortgage-backed securities	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
Total unrealized loss position	$	126,514	$	917	$	17,053	$	337	$	143,567	$	1,254
As of June 30, 2014
Mortgage-backed securities	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017
Total unrealized loss position	$	194,724	$	1,898	$	2,955	$	119	$	197,679	$	2,017

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the three or six months ended June 30, 2015 or 2014.

The cost basis, unrealized gains and losses, and fair value of securities available-for-sale at June 30, 2015, December 31, 2014 and June 30, 2014 are presented below (in thousands).

As of June 30, 2015		Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
	U.S. Treasuries	$	127,962	$	360	$	421	$	127,901
	U.S. Government agencies		110,710		126		525		110,311
	State and political subdivisions		30,489		416		141		30,764
	Mortgage-backed securities (1)		989,636		14,852		6,372		998,116
	Corporate bonds		208,114		1,611		2,701		207,024
	Asset-backed securities		462,702		3,938		308		466,332
	Other		1,871		-		-		1,871
	Total	$	1,931,484	$	21,303	$	10,468	$	1,942,319
As of December 31, 2014
	U.S. Treasuries	$	105,540	$	235	$	66	$	105,709
	U.S. Government agencies		36,474		-		175		36,299
	State and political subdivisions		19,748		504		19		20,233
	Mortgage-backed securities (1)		988,012		16,273		7,465		996,820
	Corporate bonds		165,018		1,686		1,076		165,628
	Asset-backed securities		455,626		2,257		1,955		455,928
	Other		2,117		-		-		2,117
	Total	$	1,772,535	$	20,955	$	10,756	$	1,782,734
As of June 30, 2014
	U.S. Treasuries	$	15,579	$	-	$	71	$	15,508
	State and political subdivisions		21,080		773		38		21,815
	Mortgage-backed securities (1)		1,068,593		17,470		8,623		1,077,440
	Corporate bonds		175,975		1,426		1,430		175,971
	Asset-backed securities		444,910		3,664		251		448,323
	Other		2,211		-		-		2,211
	Total	$	1,728,348	$	23,333	$	10,413	$	1,741,268

⁽¹⁾ All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

The following table summarizes available-for-sale securities in an unrealized loss position as of June 30, 2015, December 31, 2014 and June 30, 2014 (in thousands).

	Less than 12 Months				12 Months or More				Total
As of June 30, 2015	Fair Value		Unrealized  Loss		Fair Value		Unrealized  Loss		Fair Value		Unrealized Loss
U.S. Treasuries	$	49,830	$	421	$	-	$	-	$	49,830	$	421
U.S. Government agencies		85,769		525		-		-		85,769		525
State and political subdivisions		13,441		141		-		-		13,441		141
Mortgage-backed securities		145,477		1,283		198,067		5,089		343,544		6,372
Corporate bonds		119,690		2,701		-		-		119,690		2,701
Asset-backed securities		49,294		261		14,899		47		64,193		308
Total unrealized loss position	$	463,501	$	5,332	$	212,966	$	5,136	$	676,467	$	10,468
As of December 31, 2014
U.S. Treasuries	$	34,180	$	66	$	-	$	-	$	34,180	$	66
U.S. Government agencies		36,299		175		-		-		36,299		175
State and political subdivisions		2,481		19		-		-		2,481		19
Mortgage-backed securities		88,741		446		251,977		7,019		340,718		7,465
Corporate bonds		37,891		371		20,275		705		58,166		1,076
Asset-backed securities		221,359		1,592		40,952		363		262,311		1,955
Total unrealized loss position	$	420,951	$	2,669	$	313,204	$	8,087	$	734,155	$	10,756
As of June 30, 2014
U.S. Treasuries	$	10,508	$	71	$	-	$	-	$	10,508	$	71
State and political subdivisions		-		-		3,634		38		3,634		38
Mortgage-backed securities		100,949		519		277,556		8,104		378,505		8,623
Corporate bonds		19,130		114		46,010		1,316		65,140		1,430
Asset-backed securities		83,620		166		11,486		85		95,106		251
Total unrealized loss position	$	214,207	$	870	$	338,686	$	9,543	$	552,893	$	10,413

At June 30, 2015, there were 142 available-for-sale securities and 23 held-to-maturity securities that were in an unrealized loss position. United does not intend to sell nor believes it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014 were primarily attributable to changes in interest rates and therefore, United does not consider them to be impaired.

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three and six months ended June 30, 2015 and 2014 (in thousands).

	Three Months Ended  June 30,					Six Months Ended  June 30,
		2015		2014			2015		2014
Proceeds from sales	$	67,350	$	236,911		$	136,817	$	390,227
Gross gains on sales	$	13	$	5,374		$	1,552	$	5,784
Gross losses on sales		-		(939	)		-		(1,132	)
Net gains on sales of securities	$	13	$	4,435		$	1,552	$	4,652
Income tax expense attributable to sales	$	5	$	1,725		$	603	$	1,817

Securities with a carrying value of $1.25 billion, $1.51 billion and $1.37 billion were pledged to secure public deposits and other secured borrowings at June 30, 2015, December 31, 2014 and June 30, 2014, respectively.

The amortized cost and fair value of held-to-maturity and available-for-sale securities at June 30, 2015, by contractual maturity, are presented in the following table (in thousands).

			Available-for-Sale				Held-to-Maturity
		Amortized Cost		Fair Value		Amortized Cost		Fair Value
US Treasuries:
	1 to 5 years	$	77,711	$	78,071	$	-	$	-
	5 to 10 years		50,251		49,830		-		-
			127,962		127,901		-
US Government agencies:
	1 to 5 years		32,007		31,801		-		-
	5 to 10 years		78,703		78,510		-		-
			110,710		110,311		-
State and political subdivisions:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		9,709		9,969		17,670		18,756
	5 to 10 years		11,325		11,237		22,140		23,673
	More than 10 years		4,968		4,995		6,300		6,754
			30,489		30,764		47,116		50,219
Corporate bonds:
	1 to 5 years		57,031		57,474		-		-
	5 to 10 years		118,603		118,841		-		-
	More than 10 years		32,480		30,709		-		-
			208,114		207,024		-
Asset-backed securities:
	1 to 5 years		237,660		239,903		-		-
	5 to 10 years		78,367		78,628		-		-
	More than 10 years		146,675		147,801		-		-
			462,702		466,332		-
Other:
	More than 10 years		1,871		1,871		-		-
			1,871		1,871		-
Total securities other than mortgage-backed securities:
	Within 1 year		4,487		4,563		1,006		1,036
	1 to 5 years		414,118		417,218		17,670		18,756
	5 to 10 years		337,249		337,046		22,140		23,673
	More than 10 years		185,994		185,376		6,300		6,754
Mortgage-backed securities			989,636		998,116		332,641		337,847
		$	1,931,484	$	1,942,319	$	379,757	$	388,066

Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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Servicing Rights for Government Guaranteed Loans

6 Months Ended

Jun. 30, 2015

Transfers and Servicing [Abstract]

Servicing Rights for Government Guaranteed Loans

Note 7 – Servicing Rights for Government Guaranteed Loans

United accounts for servicing rights for government guaranteed loans serviced for others at fair value and includes them in other assets. Changes in the balances of servicing assets and servicing liabilities subsequently measured using the fair value measurement method for the three and six months ended June 30, 2015 and 2014 are recorded as follows (in thousands).

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015			2014		2015			2014
Fair value at beginning of period	$	2,717		$	-	$	2,551		$	-
Additions:
Acquired servicing rights		-			2,133		-			2,133
Originated servicing rights capitalized upon sale on loans		442			129		632			129
Changes in fair value:
Due to change in valuation inputs or assumptions used in valuation model		(41	)		-		(65	)		-
Fair value at end of period	$	3,118		$	2,262	$	3,118		$	2,262

A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s government guaranteed servicing assets as of June 30, 2015 and December 31, 2014, and the sensitivity of the fair values to immediate adverse changes in those assumptions are shown in the table below (in thousands).

	June 30,			December 31,
	2015			2014
Fair value of retained servicing assets	$	3,118		$	2,551
Prepayment rate assumption		6.98	%		6.70	%
10% adverse change	$	(80	)	$	(62	)
20% adverse change	$	(156	)	$	(122	)
Discount rate		11.0	%		12.0	%
100 bps adverse change	$	(109	)	$	(85	)
200bps adverse change	$	(211	)	$	(164	)
Weighted-average life (months)		6.9			6.5
Weighted-average gross margin		2.02	%		2.00	%

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Servicing Rights for Government Guaranteed Loans - Economic assumptions of SBA Servicing Asset (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Servicing Assets at Fair Value [Line Items]
Fair value of retained Servicing Assets	$ 3,118	$ 2,551	$ 2,717	$ 2,262
Prepayment rate assumption	6.98%	6.70%
10% adverse change	$ (80)	$ (62)
20% adverse change	$ (156)	$ (122)
Discount rate	11.00%	12.00%
Weighted-average life (months)	6 years 10 months 24 days	6 years 6 months
Weighted-average gross margin	2.02%	2.00%
100 bps adverse change
Servicing Assets at Fair Value [Line Items]
Adverse change	$ (109)	$ (85)
200bps adverse change
Servicing Assets at Fair Value [Line Items]
Adverse change	$ (211)	$ (164)

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Assets and Liabilities Measured at Fair Value (Detail Textual) - 6 months ended Jun. 30, 2015	Total
Fair Value [Abstract]
Percentage of written down in appraisal value of nonaccrual impaired loans	80.00%
Maximum remaining maturity of financial instruments having no defined maturity	180 days

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Earnings Per Share - Preferred stock dividends (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accrued dividends on preferred stock, including accretion of discounts
Total preferred stock dividends	$ 17		$ 17	$ 439
Series H - 1% until March 15, 2016, subject to change based on Qualified Small Business Lending, 9% thereafter
Accrued dividends on preferred stock, including accretion of discounts
Total preferred stock dividends	$ 17		$ 17
Series B - 5% fixed until December 6, 2013, 9% thereafter
Accrued dividends on preferred stock, including accretion of discounts
Total preferred stock dividends				$ 159
Series D - LIBOR plus 9.6875%, resets quarterly
Accrued dividends on preferred stock, including accretion of discounts
Total preferred stock dividends				$ 280

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Servicing Rights for Government Guaranteed Loans - Changes in the balances of servicing assets and servicing liabilities subsequently measured using fair value measurement method (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
ASC 860 Servicing Asset Rollforward
Fair value at beginning of period	$ 2,717		$ 2,551
Additions:
Acquired servicing rights		$ 2,133		$ 2,133
Originated servicing rights capitalized upon sale on loans	$ 442	$ 129	$ 632	$ 129
Changes in fair value:
Due to change in valuation inputs or assumptions used in valuation model	(41)		(65)
Fair value at end of period	$ 3,118	$ 2,262	$ 3,118	$ 2,262

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of stock option activity

Options	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinisic Value ($000)
Outstanding at December 31, 2014		313,555		$	93.40
Expired		(45,242	)		108.61
Forfeited		(12,211	)		103.12
Outstanding at June 30, 2015		256,102			90.25		2.9	$	168
Exercisable at June 30, 2015		239,852			95.32		2.5		81

Schedule of restricted stock units activity

Restricted Stock Unit Awards	Shares			Weighted- Average Grant- Date Fair Value
Outstanding at December 31, 2014	829,201		$	14.76
Granted	129,507			18.23
Vested	(140,102	)		14.36
Cancelled	(53,545	)		15.26
Outstanding at June 30, 2015	765,061			15.39
Vested at June 30, 2015	1,170			10.69

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Loans and Allowance for Loan Losses - Major classifications of loans (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Classifications of loans
Total loans	$ 5,173,517	$ 4,672,119	$ 4,410,285
Less allowance for loan losses	(70,129)	(71,619)	(73,248)
Loans, net	5,103,388	4,600,500	4,337,037
Loans Receivable
Classifications of loans
Total loans	5,173,517	4,672,119	4,410,285
Less allowance for loan losses	(70,129)	(71,619)	(73,248)
Loans, net	5,103,388	4,600,500	4,337,037
Loans Receivable | Owner occupied commercial real estate
Classifications of loans
Total loans	1,265,783	1,163,480	1,163,327
Loans Receivable | Income producing commercial real estate
Classifications of loans
Total loans	688,768	598,537	598,318
Loans Receivable | Commercial & industrial
Classifications of loans
Total loans	792,791	710,256	554,089
Loans Receivable | Commercial construction
Classifications of loans
Total loans	237,820	196,030	159,755
Loans Receivable | Commercial
Classifications of loans
Total loans	2,985,162	2,668,303	2,475,489
Loans Receivable | Residential mortgage
Classifications of loans
Total loans	935,646	865,789	860,525
Loans Receivable | Home equity lines of credit
Classifications of loans
Total loans	490,753	465,872	451,435
Loans Receivable | Residential construction
Classifications of loans
Total loans	298,920	298,627	301,737
Loans Receivable | Consumer installment
Classifications of loans
Total loans	105,931	104,899	105,160
Loans Receivable | Indirect auto
Classifications of loans
Total loans	$ 357,105	$ 268,629	$ 215,939

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Common and Preferred Stock Issued / Common Stock Issuable

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Common and Preferred Stock Issued / Common Stock Issuable

Note 12 – Common and Preferred Stock Issued / Common Stock Issuable

United sponsors a Dividend Reinvestment and Share Purchase Plan (“DRIP”) that allows participants who already own United’s common stock to purchase additional shares directly from United. The DRIP also allows participants to automatically reinvest their quarterly dividends in additional shares of common stock without a commission. No shares were issued through the DRIP in the first six months of 2014 as the DRIP was suspended during that time. The DRIP was re-activated following United’s reinstatement of its quarterly dividend in the second quarter of 2014. In the six months ended June 30, 2015, 997 shares were issued through the DRIP.

United’s 401(k) Plan has routinely purchased shares of United’s common stock directly from United. Effective January 1, 2015, the 401(k) Plan discontinued offering shares of United’s common stock as an investment option. During the six months ended June 30, 2014, United’s 401(k) Plan purchased 14,171 shares directly from United at the average of the high and low stock prices on the transaction dates which increased capital by $245,000.

In addition, United has an Employee Stock Purchase Program (“ESPP”) that allows eligible employees to purchase shares of common stock at a 5% discount, with no commission charges. Effective January 1, 2015, the discount was increased to 10% on purchases made through the ESPP. During the first six months of 2015 and 2014, United issued 6,664 shares and 5,128 shares, respectively, through the ESPP. 

United offers its common stock as an investment option in its deferred compensation plan. United also allows for the deferral of restricted stock unit awards. The common stock component of the deferred compensation plan is accounted for as an equity instrument and is reflected in the consolidated financial statements as common stock issuable. The deferred compensation plan does not allow for diversification once an election is made to invest in United’s common stock and settlement must be accomplished in shares at the time the deferral period is completed. At June 30, 2015 and 2014, 413,014 and 314,039 shares of common stock, respectively, were issuable under the deferred compensation plan.

As discussed in Note 3, on May 1, 2015, the Company completed its previously announced acquisition of Moneytree. Upon completion of the acquisition, each share of preferred stock issued by MoneyTree as part of the SBLF program of the United States Department of Treasury (9,992 shares in the aggregate with a liquidation preference amount of $1,000 per share) was converted automatically into one substantially identical share of preferred stock of the Company with a liquidation preference amount of $1,000 per share, designated as the Company’s Non-Cumulative Perpetual Preferred Stock, Series H. The SBLF Preferred Shares have terms and conditions identical to those shares of preferred stock issued by MoneyTree to the Treasury.  United will pay noncumulative dividends quarterly.  The current dividend rate is 1.00% per annum through March 15, 2016.  Following this date, the dividend rate will increase to 9% per annum thereafter.    

The SBLF Preferred Shares may be redeemed at any time at the option of United, subject to the approval of the appropriate federal banking agency.  All redemptions must be made at a per share redemption price equal to 100% of the liquidation preference, plus accrued and unpaid dividends as of the date of the redemption (“Redemption Date”) for the quarter that includes the Redemption Date, and a pro rata portion of any lending incentive fee.  All redemptions must be in amounts equal to at least 25% of the number of originally issued shares, or 100% of the then outstanding shares, if less than 25% of the number of originally issued shares.

In the first quarter of 2014, United redeemed all of its outstanding Series B and D preferred stock. The preferred stock was redeemed at par and did not result in any gain or loss. The redemptions were funded from a combination of dividends from United Community Bank and cash on hand.

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Schedule of purchased assets and assumed liabilities

	As Recorded by Money Tree		Fair Value Adjustments (1)			As Recorded by United
Assets
Cash and cash equivalents	$	55,293	$	-		$	55,293
Securities		127,123		(52	)		127,071
Loans held for sale		1,342		-			1,342
Loans, net		246,816		(2,464	)		244,352
Premises and equipment, net		9,497		3,759			13,256
Bank owned life insurance		11,194		-			11,194
Core deposit intangible		-		4,220			4,220
Other assets		5,462		(1,199	)		4,263
Total assets acquired	$	456,727	$	4,264		$	460,991
Liabilities
Deposits	$	368,833	$	917		$	369,750
Short-term borrowings		15,000		-			15,000
Federal Home Loan Bank advances		22,000		70			22,070
Other liabilities		864		1,742			2,606
Total liabilities assumed		406,697		2,729			409,426
SBLF preferred stock assumed		9,992		-			9,992
Excess of assets acquired over
liabilities and preferred stock assumed	$	40,038
Aggregate fair value adjustments			$	1,535
Consideration transferred
Cash							10,699
Common stock issued (2,358,503 shares)							43,892
Total fair value of consideration transferred							54,591
Goodwill						$	13,018

⁽¹⁾ Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Schedule of acquired loan portfolio

	May 1, 2015
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	15,152
Non-accretable difference		3,677
Cash flows expected to be collected		11,475
Accretable yield		1,029
Fair value	$	10,446
Excluded from ASC 310-30:
Fair value	$	233,906
Gross contractual amounts receivable		258,931
Estimate of contractual cash flows not expected to be collected		1,231

Schedule of actual results and pro forma information

	Revenue		Net Income
Actual MoneyTree from May 1, 2015 - June 30, 2015	$	2,284	$	384
2015 supplemental consolidated pro forma from January 1, 2015 - June 30, 2015		153,322		38,294
2014 supplemental consolidated pro forma from January 1, 2014 - June 30, 2014		137,809		31,080

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Securities - Amortized cost and fair value of held to maturity and available for sale securities (Details 5) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost		$ 1,931,484	$ 1,772,535	$ 1,728,348
Available-for-Sale, Fair Value		1,942,319	1,782,734	1,741,268
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost		379,757	415,267	448,752
Held-to-Maturity, Fair value		388,066	425,233	458,864
U.S. Treasuries
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, 1 to 5 years		77,711
Available-for-Sale, Fair Value, 1 to 5 years		78,071
Available-for-Sale, Amortized Cost, 5 to 10 years		50,251
Available-for-Sale, Fair Value, 5 to 10 years		49,830
Available-for-Sale, Amortized Cost		127,962	105,540	15,579
Available-for-Sale, Fair Value		$ 127,901	105,709	15,508
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, 1 to 5 years
Held-to-Maturity, Fair Value, 1 to 5 years
Held-to-Maturity, Amortized Cost, 5 to 10 years
Held-to-Maturity, Fair Value, 5 to 10 years
Held-to-Maturity, Amortized Cost
Held-to-Maturity, Fair value
U.S. Government agencies
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, 1 to 5 years		$ 32,007
Available-for-Sale, Fair Value, 1 to 5 years		31,801
Available-for-Sale, Amortized Cost, 5 to 10 years		78,703
Available-for-Sale, Fair Value, 5 to 10 years		78,510
Available-for-Sale, Amortized Cost		110,710	36,474
Available-for-Sale, Fair Value		$ 110,311	36,299
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, 1 to 5 years
Held-to-Maturity, Fair Value, 1 to 5 years
Held-to-Maturity, Amortized Cost, 5 to 10 years
Held-to-Maturity, Fair Value, 5 to 10 years
Held-to-Maturity, Amortized Cost
Held-to-Maturity, Fair value
State and political subdivisions
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, Within 1 year		$ 4,487
Available-for-Sale, Fair Value, Within 1 year		4,563
Available-for-Sale, Amortized Cost, 1 to 5 years		9,709
Available-for-Sale, Fair Value, 1 to 5 years		9,969
Available-for-Sale, Amortized Cost, 5 to 10 years		11,325
Available-for-Sale, Fair Value, 5 to 10 years		11,237
Available-for-Sale, Amortized Cost, More than 10 years		4,968
Available-for-Sale, Fair Value, More than 10 years		4,995
Available-for-Sale, Amortized Cost		30,489	19,748	21,080
Available-for-Sale, Fair Value		30,764	20,233	21,815
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, Within 1 year		1,006
Held-to-Maturity, Fair Value, Within 1 year		1,036
Held-to-Maturity, Amortized Cost, 1 to 5 years		17,670
Held-to-Maturity, Fair Value, 1 to 5 years		18,756
Held-to-Maturity, Amortized Cost, 5 to 10 years		22,140
Held-to-Maturity, Fair Value, 5 to 10 years		23,673
Held-to-Maturity, Amortized Cost, More than 10 years		6,300
Held-to-Maturity, Fair Value, More than 10 years		6,754
Held-to-Maturity, Amortized Cost		47,116
Held-to-Maturity, Fair value		50,219
Corporate bonds
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, 1 to 5 years		57,031
Available-for-Sale, Fair Value, 1 to 5 years		57,474
Available-for-Sale, Amortized Cost, 5 to 10 years		118,603
Available-for-Sale, Fair Value, 5 to 10 years		118,841
Available-for-Sale, Amortized Cost, More than 10 years		32,480
Available-for-Sale, Fair Value, More than 10 years		30,709
Available-for-Sale, Amortized Cost		208,114	165,018	175,975
Available-for-Sale, Fair Value		$ 207,024	165,628	175,971
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, 1 to 5 years
Held-to-Maturity, Fair Value, 1 to 5 years
Held-to-Maturity, Amortized Cost, 5 to 10 years
Held-to-Maturity, Fair Value, 5 to 10 years
Held-to-Maturity, Amortized Cost, More than 10 years
Held-to-Maturity, Fair Value, More than 10 years
Held-to-Maturity, Amortized Cost
Held-to-Maturity, Fair value
Asset-backed securities
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, 1 to 5 years		$ 237,660
Available-for-Sale, Fair Value, 1 to 5 years		239,903
Available-for-Sale, Amortized Cost, 5 to 10 years		78,367
Available-for-Sale, Fair Value, 5 to 10 years		78,628
Available-for-Sale, Amortized Cost, More than 10 years		146,675
Available-for-Sale, Fair Value, More than 10 years		147,801
Available-for-Sale, Amortized Cost		462,702	455,626	444,910
Available-for-Sale, Fair Value		$ 466,332	455,928	448,323
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, 1 to 5 years
Held-to-Maturity, Fair Value, 1 to 5 years
Held-to-Maturity, Amortized Cost, 5 to 10 years
Held-to-Maturity, Fair Value, 5 to 10 years
Held-to-Maturity, Amortized Cost, More than 10 years
Held-to-Maturity, Fair Value, More than 10 years
Held-to-Maturity, Amortized Cost
Held-to-Maturity, Fair value
Other
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, More than 10 years		$ 1,871
Available-for-Sale, Fair Value, More than 10 years		1,871
Available-for-Sale, Amortized Cost		1,871	2,117	2,211
Available-for-Sale, Fair Value		$ 1,871	2,117	2,211
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, More than 10 years
Held-to-Maturity, Fair Value, More than 10 years
Held-to-Maturity, Amortized Cost
Held-to-Maturity, Fair value
Total securities other than mortgage-backed securities
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, Within 1 year		$ 4,487
Available-for-Sale, Fair Value, Within 1 year		4,563
Available-for-Sale, Amortized Cost, 1 to 5 years		414,118
Available-for-Sale, Fair Value, 1 to 5 years		417,218
Available-for-Sale, Amortized Cost, 5 to 10 years		337,249
Available-for-Sale, Fair Value, 5 to 10 years		337,046
Available-for-Sale, Amortized Cost, More than 10 years		185,994
Available-for-Sale, Fair Value, More than 10 years		185,376
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, Within 1 year		1,006
Held-to-Maturity, Fair Value, Within 1 year		1,036
Held-to-Maturity, Amortized Cost, 1 to 5 years		17,670
Held-to-Maturity, Fair Value, 1 to 5 years		18,756
Held-to-Maturity, Amortized Cost, 5 to 10 years		22,140
Held-to-Maturity, Fair Value, 5 to 10 years		23,673
Held-to-Maturity, Amortized Cost, More than 10 years		6,300
Held-to-Maturity, Fair Value, More than 10 years		6,754
Mortgage-backed securities
Available for Sale - Amortized Cost and Fair Value
Available-for-Sale, Amortized Cost, More than 10 years		989,636
Available-for-Sale, Fair Value, More than 10 years		998,116
Available-for-Sale, Amortized Cost	[1]	989,636	988,012	1,068,593
Available-for-Sale, Fair Value	[1]	998,116	$ 996,820	$ 1,077,440
Held to Maturity - Amortized Cost and Fair Value
Held-to-Maturity, Amortized Cost, More than 10 years		332,641
Held-to-Maturity, Fair Value, More than 10 years		$ 337,847

[1] All are residential type mortgage-backed securities or U.S. government agency commercial mortgage backed securities.

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Acquisition (Details Textuals)	1 Months Ended	3 Months Ended	6 Months Ended
	May. 01, 2015 USD ($) Branch $ / shares shares	Jun. 30, 2015 USD ($) shares	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 14,527,000	$ 14,527,000		$ 1,509,000	$ 1,509,000
Common shares issued as part of consideration | shares			2,358,503
Acquisition related costs excluded from pro forma		$ 3,173,000	$ 3,173,000
Period operating results of acquired assets and assumed liabilities		61 days
Preferred stock Series H
Business Acquisition [Line Items]
Number preferred stock shares outstanding | shares		9,992	9,992
MoneyTree | FNB
Business Acquisition [Line Items]
Number of branches | Branch	10
Assets acquired	$ 461,000,000
Liabilities assumed	409,000,000
Preferred stock assumed	9,990,000
Total consideration transferred	54,600,000
Goodwill	$ 13,000,000
Common shares issued as part of consideration | shares	2,358,503
Number preferred stock shares outstanding | shares	9,992
Liquidation preference amount | $ / shares	$ 1,000
Pre-acquisition provision for loan losses			$ 7,000	$ 96,000
MoneyTree | FNB | Operating expenses
Business Acquisition [Line Items]
Acquisition related costs excluded from pro forma			$ 3,170,000
MoneyTree | FNB | Core deposit
Business Acquisition [Line Items]
Intangible assets acquired	$ 4,220,000
Expected useful life of asset	6 years 8 months 1 day
MoneyTree | FNB | Deposit premium
Business Acquisition [Line Items]
Intangible assets acquired	$ 917,000
Weighted average maturity of underlying deposits	5 years

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Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
ASSETS
Cash and due from banks	$ 80,865	$ 77,180	$ 91,791
Interest-bearing deposits in banks	94,032	89,074	100,270
Short-term investments	30,000	26,401	47,999
Cash and cash equivalents	204,897	192,655	240,060
Securities available-for-sale	1,942,319	1,782,734	1,741,268
Securities held-to-maturity (fair value $388,066, $425,233 and $458,864)	379,757	415,267	448,752
Mortgage loans held for sale	22,003	13,737	14,918
Loans, net of unearned income	5,173,517	4,672,119	4,410,285
Less allowance for loan losses	(70,129)	(71,619)	(73,248)
Loans, net	5,103,388	4,600,500	4,337,037
Premises and equipment, net	173,313	159,390	161,614
Bank owned life insurance	92,952	81,294	80,922
Accrued interest receivable	21,030	20,103	19,141
Net deferred tax asset	195,746	215,503	233,149
Derivative financial instruments	21,728	20,599	22,024
Goodwill and other intangible assets	20,190	3,641	2,731
Other assets	68,980	61,563	50,450
Total assets	8,246,303	7,566,986	7,352,066
Deposits:
Demand	1,847,696	1,574,317	1,519,635
NOW	1,416,279	1,504,887	1,334,883
Money market	1,406,352	1,273,283	1,245,912
Savings	350,049	292,308	279,203
Time:
Less than $100,000	792,300	748,478	805,289
Greater than $100,000	465,347	508,228	554,310
Brokered	529,920	425,011	424,313
Total deposits	6,807,943	6,326,512	6,163,545
Short-term borrowings	25,000	6,000	76,256
Federal Home Loan Bank advances	385,125	270,125	175,125
Long-term debt	113,901	129,865	129,865
Derivative financial instruments	32,374	31,997	36,545
Unsettled securities purchases		5,425	7,264
Accrued expenses and other liabilities	54,728	57,485	41,497
Total liabilities	7,419,071	6,827,409	6,630,097
Shareholders' equity:
Common stock	54,415	50,178	50,058
Common stock issuable; 400,369, 357,983 and 237,763 shares	6,071	5,168	4,649
Capital surplus	1,123,730	1,080,508	1,091,780
Accumulated deficit	(358,294)	(387,568)	(418,583)
Accumulated other comprehensive loss	(16,968)	(18,790)	(16,016)
Total shareholders' equity	827,232	739,577	721,969
Total liabilities and shareholders' equity	8,246,303	7,566,986	7,352,066
Preferred stock Series H
Shareholders' equity:
Preferred stock	9,992
Non-Voting Common Stock
Shareholders' equity:
Common stock	8,286	10,081	10,081
Total shareholders' equity	$ 8,286	$ 10,081	$ 10,081

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Goodwill and Other Intangible Assets (Details 1) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Goodwill [Roll Forward]
Balance, beginning of period	$ 307,099	$ 307,099
Acquisition of MoneyTree/ Business Carolina, Inc	13,018	13,018
Balance, end of period	320,117	320,117
Balance, beginning of period	$ (305,590)	$ (305,590)
Acquisition of MoneyTree/ Business Carolina, Inc
Balance, end of period	$ (305,590)	$ (305,590)
Balance, beginning of period	1,509	1,509
Acquisition of MoneyTree/ Business Carolina, Inc	13,018	13,018
Balance, end of period	$ 14,527	$ 14,527

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Accounting Policies

6 Months Ended

Jun. 30, 2015

Summary Of Significant Accounting Policies [Abstract]

Accounting Policies

Note 1 – Accounting Policies

The accounting and financial reporting policies of United Community Banks, Inc. (“United”) and its subsidiaries conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its Annual Report on Form 10-K for the year ended December 31, 2014.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods.

Certain 2014 amounts have been reclassified to conform to the 2015 presentation.

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Loans and Allowance for Loan Losses - Aging of recorded investment in past due loans (Details 7) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Recorded investment in nonaccrual loans by loan class
Loans Outstanding, Ending Balance	$ 5,173,517	$ 4,672,119	$ 4,410,285
Loans Receivable
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	23,515	26,813	24,599
Loans Not Past Due	5,150,002	4,645,306	4,385,686
Loans Outstanding, Ending Balance	5,173,517	4,672,119	4,410,285
Loans Receivable | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	13,937	12,242	14,686
Loans Receivable | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	3,422	6,925	3,700
Loans Receivable | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	6,156	7,646	6,213
Loans Receivable | Owner occupied commercial real estate
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	4,772	4,514	2,449
Loans Not Past Due	1,261,011	1,158,966	1,160,878
Loans Outstanding, Ending Balance	1,265,783	1,163,480	1,163,327
Loans Receivable | Owner occupied commercial real estate | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	2,789	1,444	448
Loans Receivable | Owner occupied commercial real estate | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	337	1,929	1,239
Loans Receivable | Owner occupied commercial real estate | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,646	1,141	762
Loans Receivable | Income producing commercial real estate
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,479	3,494	2,272
Loans Not Past Due	687,289	595,043	596,046
Loans Outstanding, Ending Balance	688,768	598,537	598,318
Loans Receivable | Income producing commercial real estate | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	726	2,322	$ 2,030
Loans Receivable | Income producing commercial real estate | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	313	$ 1,172
Loans Receivable | Income producing commercial real estate | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	440		$ 242
Loans Receivable | Commercial & industrial
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	2,175	$ 1,767	1,436
Loans Not Past Due	790,616	708,489	552,653
Loans Outstanding, Ending Balance	792,791	710,256	554,089
Loans Receivable | Commercial & industrial | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	810	302	930
Loans Receivable | Commercial & industrial | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	87	40	101
Loans Receivable | Commercial & industrial | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,278	1,425	405
Loans Receivable | Commercial construction
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	670	66	166
Loans Not Past Due	237,150	195,964	159,589
Loans Outstanding, Ending Balance	237,820	$ 196,030	159,755
Loans Receivable | Commercial construction | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	$ 626		$ 116
Loans Receivable | Commercial construction | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due
Loans Receivable | Commercial construction | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	$ 44	$ 66	$ 50
Loans Receivable | Commercial
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	9,096	9,841	6,323
Loans Not Past Due	2,976,066	2,658,462	2,469,166
Loans Outstanding, Ending Balance	2,985,162	2,668,303	2,475,489
Loans Receivable | Commercial | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	4,951	4,068	3,524
Loans Receivable | Commercial | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	737	3,141	1,340
Loans Receivable | Commercial | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	3,408	2,632	1,459
Loans Receivable | Residential mortgage
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	8,071	11,443	11,926
Loans Not Past Due	927,575	854,346	848,599
Loans Outstanding, Ending Balance	935,646	865,789	860,525
Loans Receivable | Residential mortgage | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	4,888	5,234	7,372
Loans Receivable | Residential mortgage | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,568	2,931	1,404
Loans Receivable | Residential mortgage | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,615	3,278	3,150
Loans Receivable | Home equity lines of credit
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	2,075	1,431	1,881
Loans Not Past Due	488,678	464,441	449,554
Loans Outstanding, Ending Balance	490,753	465,872	451,435
Loans Receivable | Home equity lines of credit | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	1,268	961	1,609
Loans Receivable | Home equity lines of credit | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	528	303	193
Loans Receivable | Home equity lines of credit | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	279	167	79
Loans Receivable | Residential construction
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	2,808	2,835	3,161
Loans Not Past Due	296,112	295,792	298,576
Loans Outstanding, Ending Balance	298,920	298,627	301,737
Loans Receivable | Residential construction | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	2,110	1,172	1,246
Loans Receivable | Residential construction | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	269	268	584
Loans Receivable | Residential construction | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	429	1,395	1,331
Loans Receivable | Consumer installment
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	655	776	758
Loans Not Past Due	105,276	104,123	104,402
Loans Outstanding, Ending Balance	105,931	104,899	105,160
Loans Receivable | Consumer installment | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	444	607	677
Loans Receivable | Consumer installment | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	188	136	80
Loans Receivable | Consumer installment | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	23	33	1
Loans Receivable | Indirect auto
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	810	487	550
Loans Not Past Due	356,295	268,142	215,389
Loans Outstanding, Ending Balance	357,105	268,629	215,939
Loans Receivable | Indirect auto | Loans Past Due, 30 - 59 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	276	200	258
Loans Receivable | Indirect auto | Loans Past Due, 60 - 89 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	132	146	99
Loans Receivable | Indirect auto | Loans Past Due, > 90 Days
Recorded investment in nonaccrual loans by loan class
Loans, Total Past Due	$ 402	$ 141	$ 193

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Assets and Liabilities Measured at Fair Value - Level 3 fair value measurements for fair value on recurring basis (Details 2) - Recurring - Level 3 - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets	$ 15,399	$ 15,563	$ 300
Liabilities, fair value	18,261	18,979
Derivative Asset
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets	$ 11,531	12,262
ValuationTechnique	Dealer Priced
Unobservable Inputs	Dealer Priced
Derivative Liability
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets	$ 18,261	18,979
ValuationTechnique	Dealer Priced
Unobservable Inputs	Dealer Priced
Servicing rights for government guaranteed loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets	$ 3,118	$ 2,551
ValuationTechnique	Discounted cash flow
Unobservable Inputs	Discount rate Prepayment Rate
Servicing rights for government guaranteed loans | Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.00%	12.00%
Prepayment Rate	6.98%	6.70%
Corporate bonds
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets	$ 750	$ 750	$ 300
ValuationTechnique	Indicative bid provided by a broker
Unobservable Inputs	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company

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Derivatives and Hedging Activities - Derivatives accounted for as hedges under ASC 815 (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Derivatives, Fair Value [Line Items]
Derivatives accounted for as hedges, asset derivatives, fair value	$ 970		$ 1,109
Derivatives accounted for as hedges, liability derivatives, fair value	$ 4,855	$ 6,167	10,380
Derivative assets | Cash flow hedging | Money Market Deposits
Derivatives, Fair Value [Line Items]
Derivatives accounted for as hedges, asset derivatives, fair value			$ 1,109
Derivative assets | Fair value hedging | Corporate Bonds
Derivatives, Fair Value [Line Items]
Derivatives accounted for as hedges, asset derivatives, fair value	$ 970
Derivative liabilities | Cash flow hedging | Money Market Deposits
Derivatives, Fair Value [Line Items]
Derivatives accounted for as hedges, liability derivatives, fair value		$ 350	$ 523
Derivative liabilities | Fair value hedging | Brokered CD's
Derivatives, Fair Value [Line Items]
Derivatives accounted for as hedges, liability derivatives, fair value	$ 4,855	$ 5,817	$ 9,857

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Balance Sheet Offsetting (Tables)

6 Months Ended

Jun. 30, 2015

Offsetting [Abstract]

Schedule of summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments

				Gross Amounts  Offset on the  Balance Sheet
	Gross  Amounts of Recognized Assets						Net Asset Balance			Gross Amounts not Offset in the Balance Sheet					Net Amount
June 30, 2015									Financial Instruments			Collateral Received
Repurchase agreements / reverse repurchase agreements	$	330,000		$	(300,000	)	$	30,000	$	-		$	(31,679	)	$	-
Derivatives		21,728			-			21,728		(1,881	)		(3,978	)		15,869
Total	$	351,728		$	(300,000	)	$	51,728	$	(1,881	)	$	(35,657	)	$	15,869
Weighted average interest rate of reverse repurchase agreements		1.17	%

				Gross Amounts Offset on the  Balance  Sheet
	Gross Amounts of Recognized  Liabilities						Net  Liability  Balance		Gross Amounts not Offset in the Balance Sheet						Net Amount
									Financial Instruments			Collateral  Pledged
Repurchase agreements / reverse repurchase agreements	$	300,000		$	(300,000	)	$	-	$	-		$	-		$	-
Derivatives		32,374			-			32,374		(1,881	)		(35,509	)		-
Total	$	332,374		$	(300,000	)	$	32,374	$	(1,881	)	$	(35,509	)	$	-
Weighted average interest rate of repurchase agreements		.31	%

	Gross  Amounts of  Recognized  Assets			Gross  Amounts  Offset on the  Balance Sheet			Net Asset  Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
December 31, 2014									Financial Instruments			Collateral  Received
Repurchase agreements / reverse repurchase agreements	$	395,000		$	(375,000	)	$	20,000	$	-		$	(20,302	)	$	-
Derivatives		20,599			-			20,599		(869	)		(3,716	)		16,014
Total	$	415,599		$	(375,000	)	$	40,599	$	(869	)	$	(24,018	)	$	16,014
Weighted average interest rate of reverse repurchase agreements		1.16	%

	Gross Amounts of  Recognized  Liabilities			Gross Amounts  Offset on the  Balance Sheet			Net  Liability  Balance								Net Amount
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral  Pledged
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		31,997			-			31,997		(869	)		(32,792	)		-
Total	$	406,997		$	(375,000	)	$	31,997	$	(869	)	$	(32,792	)	$	-
Weighted average interest rate of repurchase agreements		.29	%

	Gross  Amounts of  Recognized  Assets			Gross Amounts  Offset on the  Balance  Sheet			Net Asset  Balance
									Gross Amounts not Offset in the Balance Sheet
June 30, 2014									Financial Instruments			Collateral  Received			Net Amount
Repurchase agreements / reverse repurchase agreements	$	420,000		$	(375,000	)	$	45,000	$	-		$	(48,933	)	$	-
Derivatives		22,024			-			22,024		(1,962	)		(162	)		19,900
Total	$	442,024		$	(375,000	)	$	67,024	$	(1,962	)	$	(49,095	)	$	19,900
Weighted average interest rate of reverse repurchase agreements		1.09	%

	Gross  Amounts of  Recognized  Liabilities			Gross  Amounts  Offset on the  Balance  Sheet			Net  Liability  Balance
									Gross Amounts not Offset in the Balance Sheet
									Financial Instruments			Collateral  Pledged			Net Amount
Repurchase agreements / reverse repurchase agreements	$	375,000		$	(375,000	)	$	-	$	-		$	-		$	-
Derivatives		36,545			-			36,545		(1,962	)		(35,245	)		-
Total	$	411,545		$	(375,000	)	$	36,545	$	(1,962	)	$	(35,245	)	$	-
Weighted average interest rate of repurchase agreements		.27	%

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Stock-Based Compensation - Stock option activity (Details) - Jun. 30, 2015 - Stock Options - USD ($) $ / shares in Units, $ in Thousands	Total
Shares
Outstanding at December 31, 2014	313,555
Expired	(45,242)
Forfeited	(12,211)
Outstanding at June 30, 2015	256,102
Outstanding at June 30, 2015	239,852
Weighted-Average Exercise Price
Outstanding at December 31, 2014	$ 93.40
Expired	108.61
Forfeited	103.12
Outstanding at June 30, 2015	90.25
Outstanding at June 30, 2015	$ 95.32
Weighted-Average Remaining Contractual Term (Years), Outstanding	2 years 10 months 24 days
Weighted-Average Remaining Contractual Term (Years), Exercisable	2 years 6 months
Aggregate Intrinsic Value, Outstanding	$ 168
Aggregate Intrinsic Value, Exercisable	$ 81

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Acquisition (Details) - USD ($) $ in Thousands		1 Months Ended	6 Months Ended
		May. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Consideration transferred
Cash			$ (44,594)	$ 31,243
Goodwill			$ 14,527		$ 1,509	$ 1,509
MoneyTree | FNB
Assets
Total assets acquired		$ 461,000
Liabilities
Total liabilities assumed		409,000
Consideration transferred
Total fair value of consideration transferred		54,600
Goodwill		13,000
MoneyTree | FNB | As Recorded by Money Tree
Assets
Cash and cash equivalents		55,293
Securities		127,123
Loans held for sale		1,342
Loans, net		246,816
Premises and equipment, net		9,497
Bank owned life insurance		$ 11,194
Core deposit intangible
Other assets		$ 5,462
Total assets acquired		456,727
Liabilities
Deposits		368,833
Short-term borrowings		15,000
Federal Home Loan Bank advances		22,000
Other liabilities		864
Total liabilities assumed		406,697
SBLF preferred stock assumed		9,992
Excess of assets acquired over liabilities and preferred stock assumed		$ 40,038
MoneyTree | FNB | Fair Value Adjustments
Assets
Cash and cash equivalents
Securities	[1]	$ (52)
Loans held for sale
Loans, net	[1]	$ (2,464)
Premises and equipment, net	[1]	$ 3,759
Bank owned life insurance
Core deposit intangible	[1]	$ 4,220
Other assets	[1]	(1,199)
Total assets acquired	[1]	4,264
Liabilities
Deposits	[1]	$ 917
Short-term borrowings
Federal Home Loan Bank advances	[1]	$ 70
Other liabilities	[1]	1,742
Total liabilities assumed	[1]	$ 2,729
SBLF preferred stock assumed
Aggregate fair value adjustments	[1]	$ 1,535
MoneyTree | FNB | As Recorded by United
Assets
Cash and cash equivalents		55,293
Securities		127,071
Loans held for sale		1,342
Loans, net		244,352
Premises and equipment, net		13,256
Bank owned life insurance		11,194
Core deposit intangible		4,220
Other assets		4,263
Total assets acquired		460,991
Liabilities
Deposits		369,750
Short-term borrowings		15,000
Federal Home Loan Bank advances		22,070
Other liabilities		2,606
Total liabilities assumed		409,426
SBLF preferred stock assumed		9,992
Consideration transferred
Cash		10,699
Common stock issued (2,358,503 shares)		43,892
Total fair value of consideration transferred		54,591
Goodwill		$ 13,018

[1] Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Stock-Based Compensation

Note 11 – Stock-Based Compensation

United has an equity compensation plan that allows for grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock unit awards (also referred to as “nonvested stock” awards), stock awards, performance share awards or stock appreciation rights. Options granted under the plan can have an exercise price no less than the fair market value of the underlying stock at the date of grant. The general terms of the plan include a vesting period (usually four years) with an exercisable period not to exceed ten years. Certain options, restricted stock and restricted stock unit awards provide for accelerated vesting if there is a change in control (as defined in the plan). As of June 30, 2015, 404,000 additional awards could be granted under the plan. Through June 30, 2015, incentive stock options, nonqualified stock options, restricted stock and restricted stock unit awards, base salary stock grants and performance share awards have been granted under the plan.

The following table shows stock option activity for the first six months of 2015.  

Options	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinisic Value ($000)
Outstanding at December 31, 2014		313,555		$	93.40
Expired		(45,242	)		108.61
Forfeited		(12,211	)		103.12
Outstanding at June 30, 2015		256,102			90.25		2.9	$	168
Exercisable at June 30, 2015		239,852			95.32		2.5		81

The fair value of each option is estimated on the date of grant using the Black-Scholes model. No stock options were granted during the six months ended June 30, 2015 and 2014.

Most of United’s outstanding stock options were granted prior to the economic downturn during which time United’s stock price decreased sharply. The lower stock price has rendered most of United’s outstanding options severely out of the money and potentially worthless to the grantee. Therefore, historical exercise patterns do not provide a reasonable basis for determining the expected life of new option grants. United therefore uses the formula provided by the SEC in ASC Topic 718-10-S99 to determine the expected life of options.

United recognized $19,000 and $2,000, respectively, in compensation expense related to stock options during the six months ended June 30, 2015 and 2014. The amount of compensation expense was determined based on the fair value of the options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period. The forfeiture rate for new options issued is estimated to be approximately 3% per year. No options were exercised during the first six months of 2015 or 2014.

The table below presents restricted stock units activity for the first six months of 2015. 

Restricted Stock Unit Awards	Shares			Weighted- Average Grant- Date Fair Value
Outstanding at December 31, 2014	829,201		$	14.76
Granted	129,507			18.23
Vested	(140,102	)		14.36
Cancelled	(53,545	)		15.26
Outstanding at June 30, 2015	765,061			15.39
Vested at June 30, 2015	1,170			10.69

Compensation expense for restricted stock units is based on the fair value of restricted stock unit awards at the time of grant, which is equal to the value of United’s common stock on the date of grant. The value of restricted stock unit awards that are expected to vest is amortized into expense over the vesting period. For the six months ended June 30, 2015 and 2014, compensation expense of $2.11 million and $2.18 million, respectively, was recognized related to restricted stock unit awards. In addition, for the six months ended June 30, 2015 and 2014, $47,000 and $50,000, respectively, was recognized in other operating expense for restricted stock unit awards granted to members of United’s board of directors. The total intrinsic value of outstanding restricted stock unit awards was $16.0 million at June 30, 2015.

As of June 30, 2015, there was $8.95 million of unrecognized compensation cost related to non-vested stock options and restricted stock unit awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.51 years. The aggregate grant date fair value of options and restricted stock unit awards that vested during the six months ended June 30, 2015, was $1.95 million.