United Community Bank reports $17.7 million income for first quarter

United Community Banks Inc. on Wednesday reported net income of $17.7 million, or 29 cents per diluted share, for the first quarter of 2015 with earnings per share up 16 percent from a year ago.

The bank's statement said the increase reflects strong loan and core deposit growth, a stable net interest margin and growth in fee revenue.

"I am very pleased with our strong first-quarter financial results and our outlook for the remainder of the year," said Jimmy Tallent, chairman and chief executive officer. "We had solid loan growth and a steady net interest margin. Fee revenue was up with meaningful increases in our mortgage and brokerage businesses and higher gains from our SBA lending business."

Operating expenses were $43.1 million in the first quarter compared to $41.9 million in the fourth quarter and $39.1 million a year ago. The increase from a year ago was driven by higher salaries and employee benefit costs as well as an increase in other operating costs, the bank reported.

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We are off to a solid start in 2015, including strong growth in loans, core deposits and fee revenue," Tallent said. "We are excited about executing our growth strategies to expand the franchise and add value for shareholders."

At the same time Wednesday, United Community Banks and Palmetto Bancshares Inc., the holding company for The Palmetto Bank, jointly announced Palmetto will merge into United as part of United's strategy of focusing on major southeastern metro markets by enhancing its position in the Greenville and upstate South Carolina area.

United, based in Blairsville, Ga., has assets of $7.7 billion, and its bank subsidiary operates 104 offices in Georgia, North Carolina, South Carolina and Tennessee.

Palmetto is the third-largest banking institution with headquarters in South Carolina with total assets of $1.2 billion, loans of $832 million and deposits of $967 million.

The value of the deal was set at approximately $240.5 million.

"Joining forces with Palmetto will greatly enhance our presence in these markets, creating value for shareholders and customers of both organizations," Tallent said.

About United Community Banks Inc.

United Community Banks Inc. (UCBI) is a bank-holding company based in Blairsville, Ga., with $7.7 billion in assets. In 2014, United Community Bank was ranked first in customer satisfaction in the southeast by J.D. Power and in 2015 was ranked 14th on the Forbes list of America's Best Banks. Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.