United Community Banks, Inc. Announces Fourth Quarter Earnings

Press Release Details

Jan 23, 2018

United Community Banks, Inc. Announces Fourth Quarter Earnings

 Loss per diluted share of 16 cents reflects impact of remeasurement of
 
deferred tax asset following historic tax reform legislation
Excluding the remeasurement charge and other non-operating charges,
Operating earnings per share up five percent, to 42 cents

  • Net interest revenue of $97.5 million, up $16.6 million or 20 percent from year ago
  • Net interest margin of 3.63 percent, up nine basis points from third quarter and up 29 basis points from year ago
  • Efficiency ratio of 63 percent, or 56.9 percent excluding merger-related and other charges
  • Completed the acquisition of Four Oaks Bank & Trust Company during the quarter

BLAIRSVILLE, Ga., Jan. 23, 2018 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced its fourth quarter financial results.  Although remeasurement of United's deferred tax assets following December's historic tax reform legislation led to a net loss for the quarter of $11.9 million or 16 cents per diluted share, strong margin expansion, disciplined expense controls and solid credit quality drove strong pre-tax results.

On an operating basis, United reported net income of $32.5 million for the fourth quarter of 2017 compared with $28.9 million for the fourth quarter of 2016.  Fourth quarter 2017 operating net income excludes the $38.2 million impact of remeasuring United's deferred tax assets, as well as merger-related and other non-operating charges totaling $6.19 million, net of the associated income tax benefit.  Fourth quarter 2016 operating net income excludes $709,000 in merger-related charges, net of the associated income tax benefit and a $976,000 tax charge for the impairment of our deferred tax asset on cancelled non-qualified stock options.  On a per diluted share basis, operating net income was 42 cents for the fourth quarter of 2017 compared with 40 cents for the fourth quarter of 2016.

At December 31, 2017, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 12.3 percent; Total Risk-Based of 13.0 percent; Common Equity Tier 1 Risk-Based of 12.0 percent, and Tier 1 Leverage of 9.4 percent.

"We achieved solid pre-tax financial results for the fourth quarter, marking a strong end to another exceptional year of achievement for United Community Banks," said Jimmy Tallent, chairman and chief executive officer.  "Looking back over the year, I am encouraged by all that we achieved.  In 2017, we continued our strategic expansion by merging with two outstanding community banks that both extend and enhance our footprint in thriving new markets.  We completed the acquisition of Horry County State Bank on July 31, significantly enhancing our presence in the Myrtle Beach area along the South Carolina coast.  We completed the acquisition of Four Oaks Bank & Trust Company on November 1, extending our footprint in and around the Raleigh, North Carolina metropolitan statistical area.  All systems conversions for the Horry County State Bank acquisition were completed in the fourth quarter and we are scheduled to convert Four Oaks to United's systems in early 2018, at which time we expect to fully realize the anticipated cost savings.  Both of these banks share our customer service culture and are exceptional partners for extending our footprint.  I could not be more pleased with these partnerships and I am thrilled to welcome them to the United family."

Tallent continued, "A few weeks ago we announced a merger with NLFC Holdings Corp. and its wholly-owned subsidiary, Navitas Credit Corp.  Navitas Credit Corp. is a premier specialty lender providing equipment finance services to small and medium-sized businesses nationwide with headquarters in Ponte Vedra, Florida.  This fast-growing company will be a solid strategic addition to our existing specialty and commercial lending businesses and will enable us to further expand our client offerings. Navitas will continue to be run by their talented team of industry veterans.  This partnership brings exceptional growth and a significant profitability enhancement to United and a permanent source of capital and low-cost funding to Navitas.  The partnership with Navitas is a solid win for both of us and I am excited to welcome them to United Community Bank.

"While the passage of tax reform legislation in late December will have a substantial and ongoing positive impact on United's earnings beginning in the first quarter of 2018, the required remeasurement of United's deferred tax assets resulted in a $38.2 million non-cash charge to tax expense in the fourth quarter," stated Tallent.  "The charge results because our net deferred tax assets will now be recovered at the lower federal income tax rate of 21 percent rather than the previous rate of 35 percent.  Despite the charge, we believe tax reform legislation will be good for United, our industry, our customers and our shareholders not only because it reduces our tax burden going forward but we also expect it to stimulate the economy and drive growth.

"Fourth quarter loan production was $644 million with $440 million originating from our community banks and $204 million from our Commercial Banking Solutions group," Tallent added.  "Linked-quarter loans were up $533 million, mostly reflecting the $486 million in net loans received through our acquisition of Four Oaks.  Our indirect auto loan portfolio was down $42.1 million from third quarter reflecting our decision to suspend indirect auto loan purchases.  Excluding the reduction in indirect auto loans and the loans acquired through the Four Oaks acquisition, loan growth was up at an annualized rate of approximately five percent from the third quarter."

Fourth quarter net interest revenue totaled $97.5 million, up $16.6 million from the fourth quarter of 2016 and up $7.7 million from the third quarter.  The increases from both periods reflect business growth and net interest margin expansions of 29 basis points from a year ago and nine basis points from the third quarter.  The increases were mostly driven by rising short-term interest rates, the repayment of senior notes in August and October, as well as the acquisitions of Four Oaks Bank & Trust Company on November 1, 2017 and Horry County State Bank on July 31, 2017Four Oaks Bank & Trust Company and Horry County State Bank results are included in United's financial results beginning on their respective acquisition date.

The fourth quarter provision for credit losses was $1.2 million, up from $1.0 million for the third quarter and no provision in fourth quarter 2016.  Fourth quarter net charge-offs totaled $1.1 million, down from $1.6 million in the third quarter of 2017 and $1.5 million in the fourth quarter of 2016.  Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans.  Nonperforming assets were .23 percent of total assets at December 31, 2017, compared with .28 percent at December 31, 2016 and .23 percent at September 30, 2017.

"Credit quality remains strong and steady as indicated by the low level of net charge-offs," Tallent commented.  "Our credit quality indicators show no indication of credit deterioration and our outlook is for that to continue.  We also expect our provision levels to gradually increase each quarter due to loan growth, while our allowance and the related ratio to total loans may decline slightly."

Fourth quarter fee revenue totaled $21.9 million, down $3.31 million from a year ago but up $1.36 million from the third quarter.  The decrease from a year ago was mostly due to lower debit card interchange fees as a result of the Durbin amendment becoming effective for United on July 1, 2017.  The application of the Durbin amendment reduced United's debit card interchange fees by approximately $2.7 million in both the third and fourth quarters.  Also contributing to the decrease from both prior periods were lower mortgage fees and lower customer derivative fees reflecting a less favorable interest rate environment.

Operating expenses were $75.9 million for the fourth quarter, compared with $61.3 million for the fourth quarter of 2016 and $65.7 million for the third quarter.  Included in the fourth quarter's operating expenses are $7.36 million in merger-related expenses.  We also had merger-related charges of $1.14 million in the fourth quarter of 2016, and $2.3 million in merger-related expenses and $1.1 million in surplus property impairment charges, totaling $3.4 million in the third quarter of 2017.  Excluding these charges, fourth quarter operating expenses were $68.5 million compared with $62.3 million for the third quarter and $60.2 million a year ago.  More than half of the $6.3 million increase from the third quarter was due to the operating expenses of Four Oaks Bank & Trust Company acquired on November 1, 2017 and Horry County State Bank acquired on July 31, 2017.  Higher incentives for exceeding performance targets contributed to the increase from third quarter and accounted for approximately half of the linked quarter increase in salaries and benefits with the rest of the increase in salaries and benefits coming from the acquisitions.

Tallent concluded, "2017 was another exceptional year for United Community Banks.  We completed two outstanding acquisitions that extend our footprint in thriving markets with bankers who share our culture of customer service.  Our bankers produced solid financial results allowing us to absorb the loss of revenue resulting from the application of the Durbin amendment and the higher deposit insurance assessment and still produce growth in earnings per share.  That alone was a tremendous accomplishment.  Every day our bankers demonstrate their passion and commitment which drive our performance and ensure our success.  With an outstanding 2017 now behind us, I look forward with eager anticipation to all our bankers will accomplish in 2018."

Conference Call
United will hold a conference call Wednesday, January 24, 2018, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 9796627.  The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ:UCBI) is a bank holding company based in Blairsville, Georgia with $11.9 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the southeast region's largest full-service banks, operating 156 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in personalized community banking services for individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management.  Respected national research firms consistently recognize United Community Bank for outstanding customer service.  For the last four years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast.  In 2017, for the fourth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America.  Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.

Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP.  This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as "operating net income," "operating net income per diluted share," "operating earnings per diluted share," "tangible book value per common share," "operating return on common equity," "operating return on tangible common equity," "operating return on assets," "operating dividend payout ratio," "operating efficiency ratio," "average tangible equity to average assets," "average tangible common equity to average assets" and "tangible common equity to risk-weighted assets."  These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United's underlying performance trends.  These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.  To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

Caution About Forward-Looking Statements
Certain Statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in United's Form 10-K for the year ended December 31, 2016 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

For more information:
Jefferson Harralson
Chief Financial Officer
(706) 781-2265
Jefferson_Harralson@ucbi.com

               
UNITED COMMUNITY BANKS, INC.             
Financial Highlights             
Selected Financial Information              
              
           Fourth 
  2017   2016  Quarter 
  Fourth   Third   Second   First   Fourth  2017-2016 
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  Change 
INCOME SUMMARY             
Interest revenue$106,757  $98,839  $93,166  $90,958   $87,778     
Interest expense 9,249   9,064   8,018    7,404   6,853     
Net interest revenue 97,508   89,775    85,148   83,554   80,925  20 % 
Provision for credit losses 1,200    1,000   800   800   -     
Fee revenue 21,928   20,573   23,685   22,074   25,233  (13)  
Total revenue 118,236   109,348   108,033   104,828   106,158  11   
Expenses 75,882   65,674   63,229   62,826   61,321  24   
Income before income tax expense 42,354   43,674   44,804   42,002   44,837  (6)  
Income tax expense 54,270   15,728   16,537   18,478   17,616  208   
Net income (11,916)  27,946   28,267   23,524   27,221  (144)  
Merger-related and other charges 7,358   3,420   1,830   2,054    1,141     
Income tax benefit of merger-related and other charges (1,165)  (1,147)  (675)  (758)  (432)    
Impact of remeasurement of deferred tax asset resulting
  from 2017 Tax Cuts and Jobs Act
 38,199   -    -   -   -     
Impairment of deferred tax asset on canceled
  non-qualified stock options
 -   -   -   -   976     
Release of disproportionate tax effects lodged in OCI -    -   -    3,400   -     
Net income - operating (1)$   32,476   $   30,219   $   29,422   $   28,220   $   28,906   12   
               
PERFORMANCE MEASURES             
Per common share:              
Diluted net income - GAAP$(.16) .38  .39  .33  .38  (142)  
Diluted net income - operating  (1).42  .41  .41  .39  .40  5   
Cash dividends declared.10  .10  .09  .09  .08  25  % 
Book value 16.67    16.50   15.83   15.40   15.06  11   
Tangible book value (3) 13.65   14.11   13.74   13.30   12.95   5   
              
Key performance ratios:             
Return on common equity - GAAP (2)(4) (3.57)% 9.22 % 9.98 % 8.54 % 9.89 %  
Return on common equity - operating (1)(2)(4) 9.73   9.97   10.39   10.25   10.51     
Return on tangible common equity - operating (1)(2)(3)(4) 11.93   11.93   12.19   12.10   12.47     
Return on assets - GAAP (4)(.40)  1.01   1.06  .89   1.03     
Return on assets - operating (1)(4) 1.10   1.09   1.10   1.07   1.10     
Dividend payout ratio - GAAP (62.50)  26.32   23.08   27.27   21.05     
Dividend payout ratio - operating (1) 23.81   24.39   21.95   23.08   20.00     
Net interest margin (fully taxable equivalent) (4) 3.63   3.54   3.47   3.45    3.34     
Efficiency ratio - GAAP 63.03   59.27   57.89   59.29   57.65     
Efficiency ratio - operating  (1) 56.92   56.18   56.21    57.35   56.58     
Average equity to average assets 11.21   10.86    10.49   10.24   10.35     
Average tangible equity to average assets (3) 9.52   9.45   9.23   8.96   9.04     
Average tangible common equity to average assets (3) 9.52   9.45   9.23    8.96   9.04     
Tangible common equity to risk-weighted assets (3)(5) 12.11   12.80   12.44   12.07   11.84     
              
ASSET QUALITY             
Nonperforming loans$23,658  $22,921  $23,095  $19,812  $21,539  10   
Foreclosed properties 3,234   2,736   2,739   5,060   7,949   (59)  
Total nonperforming assets (NPAs) 26,892   25,657   25,834   24,872   29,488  (9)  
Allowance for loan losses 58,914   58,605   59,500   60,543   61,422  (4)  
Net charge-offs 1,061    1,635   1,623   1,679   1,539  (31)  
Allowance for loan losses to loans.76 %.81 %.85 %.87 %.89 %   
Net charge-offs to average loans (4).06  .09  .09  .10  .09     
NPAs to loans and foreclosed properties.35  .36  .37  .36  .43     
NPAs to total assets.23  .23  .24  .23  .28     
              
AVERAGE BALANCES ($ in millions)             
Loans$7,560  $7,149  $6,980  $6,904  $6,814  11   
Investment securities 2,991   2,800   2,775   2,822   2,690  11   
Earning assets 10,735   10,133   9,899    9,872   9,665  11   
Total assets 11,687   10,980   10,704   10,677   10,484  11   
Deposits 9,624   8,913   8,659   8,592   8,552  13   
Shareholders' equity 1,310   1,193   1,123   1,093   1,085  21   
Common shares - basic (thousands) 76,768   73,151   71,810   71,700   71,641  7   
Common shares - diluted (thousands) 76,768   73,162   71,820   71,708   71,648  7   
              
AT PERIOD END ($ in millions)             
Loans$7,736  $7,203  $7,041  $6,965   $6,921  12   
Investment securities 2,937   2,847   2,787   2,767   2,762  6    
Total assets 11,915   11,129   10,837   10,732   10,709  11   
Deposits 9,808   9,127   8,736   8,752   8,638  14   
Shareholders' equity 1,303   1,221   1,133   1,102   1,076  21   
Common shares outstanding (thousands) 77,580   73,403   70,981   70,973   70,899  9   
              
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options.  (2)  Net income less 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)  Fourth quarter 2017 ratio is preliminary.
              


UNITED COMMUNITY BANKS, INC.        
Financial Highlights        
Selected Financial Information        
         
  For the Twelve    
  Months Ended YTD 
  December 31, 2017-2016 
(in thousands, except per share data)  2017   2016   Change 
INCOME SUMMARY        
Interest revenue $389,720  $335,020     
Interest expense  33,735    25,236     
Net interest revenue  355,985   309,784  15 % 
Provision for credit losses  3,800   (800)    
Fee revenue  88,260   93,697  (6)  
Total revenue  440,445   404,281  9   
Expenses  267,611   241,289  11   
Income before income tax expense  172,834   162,992  6   
Income tax expense  105,013   62,336  68   
Net income  67,821   100,656  (33)  
Merger-related and other charges  14,662   8,122     
Income tax benefit of merger-related and other charges  (3,745)  (3,074)    
Impact of remeasurement of deferred tax asset resulting
  from 2017 Tax Cuts and Jobs Act
  38,199   -     
Impairment of deferred tax asset on canceled
  non-qualified stock options
  -   976     
Release of disproportionate tax effects lodged in OCI  3,400   -     
Net income - operating (1) $    120,337   $   106,680     13    
         
PERFORMANCE MEASURES        
Per common share:        
Diluted net income - GAAP $ .92  $1.40  (34)  
Diluted net income - operating  (1)  1.63   1.48  10   
Cash dividends declared  .38   .30   27 % 
Book value  16.67   15.06  11   
Tangible book value (3)  13.65   12.95  5   
         
Key performance ratios:        
Return on common equity - GAAP (2)(4)  5.67 % 9.41 %    
Return on common equity - operating (1)(2)(4)  10.07   9.98     
Return on tangible common equity - operating (1)(2)(3)(4)  12.02   11.86     
Return on assets - GAAP (4)  .62   1.00     
Return on assets - operating (1)(4)  1.09   1.06     
Dividend payout ratio - GAAP  41.30   21.43     
Dividend payout ratio - operating (1)  23.31   20.27     
Net interest margin (fully taxable equivalent) (4)  3.52   3.36      
Efficiency ratio - GAAP  59.95   59.80      
Efficiency ratio - operating  (1)  56.67   57.78     
Average equity to average assets   10.71   10.54     
Average tangible equity to average assets (3)  9.29   9.21     
Average tangible common equity to average assets (3)  9.29   9.19      
Tangible common equity to risk-weighted assets (3)(5)  12.11   11.84     
          
ASSET QUALITY        
Nonperforming loans  $23,658  $21,539  10   
Foreclosed properties  3,234   7,949  (59)  
Total nonperforming assets (NPAs)  26,892   29,488  (9)  
Allowance for loan losses  58,914   61,422  (4)  
Net charge-offs  5,998   6,766  (11)  
Allowance for loan losses to loans  .76 % .89 %   
Net charge-offs to average loans (4)  .08   .11     
NPAs to loans and foreclosed properties  .35   .43     
NPAs to total assets  .23   .28      
         
AVERAGE BALANCES ($ in millions)        
Loans $7,150  $6,413  11   
Investment securities  2,847   2,691  6    
Earning assets  10,162   9,257  10   
Total assets  11,015   10,054  10   
Deposits  8,950   8,177  9   
Shareholders' equity  1,180   1,059  11   
Common shares - basic (thousands)  73,247   71,910  2   
Common shares - diluted (thousands)  73,259   71,915  2   
         
AT PERIOD END ($ in millions)        
Loans $7,736  $6,921  12   
Investment securities  2,937   2,762  6   
Total assets  11,915   10,709  11   
Deposits  9,808    8,638  14   
Shareholders' equity  1,303    1,076  21   
Common shares outstanding (thousands)  77,580   70,899  9    
         
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options.  (2)  Net income less 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)  Fourth quarter 2017 ratio is preliminary. 
         


UNITED COMMUNITY BANKS, INC.            
Selected Financial Information             
For the Years Ended December 31,            
             
(in thousands, except per share data)   2017   2016    2015   2014   2013   
INCOME SUMMARY            
Interest revenue $  389,720  $  335,020  $  278,532  $  248,432 $  245,840   
Interest expense    33,735     25,236     21,109     25,551    27,682   
Net interest revenue    355,985     309,784     257,423     222,881    218,158   
Provision for credit losses    3,800     (800)    3,700      8,500    65,500   
Fee revenue    88,260     93,697     72,529     55,554    56,598   
Total revenue    440,445     404,281     326,252     269,935    209,256    
Expenses    267,611     241,289     211,238     162,865    174,304   
Income before income tax expense    172,834     162,992     115,014     107,070    34,952   
Income tax expense (benefit)    105,013      62,336     43,436     39,450    (238,188)  
Net income    67,821     100,656     71,578     67,620    273,140   
Merger-related and other charges    14,662     8,122     17,995     -     -    
Income tax benefit of merger-related and other charges    (3,745)    (3,074)    (6,388)    -     -    
Impact of remeasurement of deferred tax asset resulting
  from 2017 Tax Cuts and Jobs Act
    38,199     -      -      -     -     
Impairment of deferred tax asset on cancelled non-qualified stock options    -      976     -      -     -    
Release of disproportionate tax effects lodged in OCI    3,400     -      -      -     -    
Net income - operating (1) $  120,337   $  106,680   $   83,185   $   67,620  $  273,140    
             
PERFORMANCE MEASURES            
Per common share:            
Diluted net income - GAAP  $ .92  $  1.40  $  1.09  $  1.11 $  4.44   
Diluted net income - operating  (1)    1.63     1.48     1.27     1.11    4.44   
Cash dividends declared     .38     .30     .22     .11    -    
Book value     16.67     15.06     14.02     12.20    11.30   
Tangible book value (3)    13.65     12.95     12.06     12.15    11.26   
             
Key performance ratios:            
Return on common equity - GAAP (2)    5.67 %   9.41 %   8.15 %   9.17 %   46.72 % 
Return on common equity - operating (1)(2)    10.07     9.98     9.48     9.17    46.72   
Return on tangible common equity - operating (1)(2)(3)    12.02     11.86     10.24     9.32    47.35   
Return on assets - GAAP     .62     1.00      .85     .91    3.86   
Return on assets - operating (1)    1.09     1.06     .98     .91    3.86   
Dividend payout ratio - GAAP    41.30     21.43     20.18     9.91    -    
Dividend payout ratio - operating (1)    23.31     20.27     17.32     9.91    -    
Net interest margin (fully taxable equivalent)     3.52     3.36     3.30     3.26    3.30   
Efficiency ratio - GAAP    59.95     59.80      63.96     58.26    63.14   
Efficiency ratio - operating  (1)    56.67     57.78     58.51     58.26     63.14   
Average equity to average assets    10.71     10.54     10.27   9.69  10.35   
Average tangible equity to average assets (3)    9.29     9.21     9.74   9.67  10.31   
Average tangible common equity to average assets (3)    9.29     9.19     9.66   9.60  7.55   
Tangible common equity to risk-weighted assets (3)(4)     12.11     11.84     12.82   13.82  13.17   
             
ASSET QUALITY            
Nonperforming loans $  23,658  $  21,539  $  22,653  $  17,881 $  26,819   
Foreclosed properties    3,234     7,949     4,883     1,726    4,221   
Total nonperforming assets (NPAs)    26,892     29,488     27,536     19,607    31,040   
Allowance for loan losses    58,914     61,422     68,448     71,619    76,762   
Net charge-offs    5,998     6,766     6,259     13,879    93,710   
Allowance for loan losses to loans    .76 %   .89 % 1.14 % 1.53  % 1.77 % 
Net charge-offs to average loans     .08     .11     .12     .31    2.22    
NPAs to loans and foreclosed properties    .35     .43     .46     .42    .72   
NPAs to total assets    .23     .28     .29     .26    .42   
             
AVERAGE BALANCES ($ in millions)            
Loans $  7,150  $  6,413  $  5,298  $  4,450 $  4,254   
Investment securities    2,847     2,691     2,368     2,274    2,190    
Earning assets    10,162     9,257      7,834     6,880    6,649   
Total assets    11,015     10,054      8,462     7,436    7,074   
Deposits    8,950     8,177     7,055     6,228    6,027   
Shareholders' equity    1,180     1,059     869     720    732   
Common shares - basic (thousands)    73,247      71,910     65,488     60,588    58,787   
Common shares - diluted (thousands)    73,259     71,915     65,492     60,590    58,845   
              
AT PERIOD END ($ in millions)            
Loans $  7,736  $  6,921  $  5,995  $  4,672 $  4,329   
Investment securities    2,937     2,762     2,656     2,198    2,312   
Total assets    11,915     10,709     9,616     7,558    7,424   
Deposits    9,808     8,638     7,873     6,335    6,202   
Shareholders' equity    1,303     1,076     1,018     740    796   
Common shares outstanding (thousands)    77,580     70,899     71,484     60,259    59,432   
             
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options  and 2015 impairment losses on surplus bank property.  (2)  Net income less 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)  2017 ratio is preliminary.  
             


UNITED COMMUNITY BANKS, INC.           
Non-GAAP Performance Measures Reconciliation           
Selected Financial Information           
            
            
  2017   2016    
  Fourth   Third   Second   First   Fourth  
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  
             
Expense reconciliation           
Expenses (GAAP)$  75,882  $  65,674  $  63,229  $  62,826  $  61,321   
Merger-related and other charges   (7,358)    (3,420)    (1,830)    (2,054)    (1,141)  
Expenses - operating$  68,524  $  62,254  $  61,399  $  60,772  $  60,180   
            
Net income reconciliation            
Net income (GAAP)$  (11,916) $  27,946  $  28,267  $  23,524  $  27,221   
Merger-related and other charges   7,358     3,420     1,830     2,054     1,141   
Income tax benefit of merger-related and other charges   (1,165)    (1,147)    (675)    (758)    (432)  
Impact of tax reform on remeasurement of deferred tax asset   38,199     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -      -      -      976   
Release of disproportionate tax effects lodged in OCI   -      -      -      3,400     -    
Net income - operating$  32,476  $  30,219  $  29,422  $  28,220  $  28,906   
            
Diluted income per common share reconciliation           
Diluted income per common share (GAAP) $  (.16)  $ .38   $  .39   $  .33   $  .38   
Merger-related and other charges   .08     .03     .02     .01     .01   
Impact of tax reform on remeasurement of deferred tax asset   .50     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -      -      -      .01   
Release of disproportionate tax effects lodged in OCI   -      -      -      .05     -    
  Diluted income per common share - operating $ .42   $  .41   $  .41   $ .39   $  .40   
            
Book value per common share reconciliation           
Book value per common share (GAAP)$  16.67  $  16.50  $  15.83  $  15.40  $  15.06   
Effect of goodwill and other intangibles   (3.02)    (2.39)    (2.09)    (2.10)    (2.11)  
Tangible book value per common share$  13.65  $  14.11  $  13.74  $  13.30  $  12.95   
            
Return on tangible common equity reconciliation           
Return on common equity (GAAP)   (3.57)%   9.22 %   9.98 %   8.54 %   9.89 % 
Merger-related and other charges   1.86     .75     .41      .47     .26   
Impact of tax reform on remeasurement of deferred tax asset   11.44     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -      -      -      .36   
Release of disproportionate tax effects lodged in OCI   -      -      -      1.24     -    
Return on common equity - operating   9.73     9.97     10.39     10.25     10.51   
Effect of goodwill and other intangibles   2.20     1.96     1.80     1.85     1.96   
Return on tangible common equity - operating   11.93 %   11.93 %   12.19 %   12.10 %   12.47 % 
            
Return on assets reconciliation           
Return on assets (GAAP)   (.40)%   1.01 %   1.06 %   .89  %   1.03 % 
Merger-related and other charges   .20     .08     .04     .05     .03   
Impact of tax reform on remeasurement of deferred tax asset   1.30     -       -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -      -      -      .04   
Release of disproportionate tax effects lodged in OCI   -      -      -      .13     -    
Return on assets - operating   1.10 %    1.09 %   1.10 %   1.07 %   1.10  % 
            
Dividend payout ratio reconciliation           
Dividend payout ratio (GAAP)   (62.50)%   26.32 %   23.08 %   27.27 %   21.05 % 
Merger-related and other charges   12.04     (1.93)    (1.13)    (.98)    (.54)  
Impact of tax reform on remeasurement of deferred tax asset   74.27     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -      -      -      (.51)  
Release of disproportionate tax effects lodged in OCI   -      -      -      (3.21)    -    
Dividend payout ratio - operating   23.81 %    24.39 %   21.95 %   23.08 %   20.00  % 
            
Efficiency ratio reconciliation            
Efficiency ratio (GAAP)   63.03 %   59.27 %   57.89 %   59.29 %   57.65 % 
Merger-related and other charges   (6.11)    (3.09)    (1.68)    (1.94)    (1.07)   
Efficiency ratio - operating   56.92 %   56.18 %   56.21 %   57.35 %   56.58 % 
            
Average equity to assets reconciliation           
Equity to assets (GAAP)   11.21 %   10.86 %   10.49 %   10.24 %   10.35 % 
Effect of goodwill and other intangibles   (1.69)    (1.41)    (1.26)    (1.28)    (1.31)  
Tangible equity to assets   9.52     9.45     9.23     8.96     9.04   
Effect of preferred equity   -      -      -      -      -    
Tangible common equity to assets   9.52 %   9.45 %   9.23 %   8.96 %   9.04 % 
            
Tangible common equity to risk-weighted assets reconciliation (1)           
Tier 1 capital ratio (Regulatory)   12.27 %   12.27 %   11.91 %   11.46 %   11.23 % 
Effect of other comprehensive income   (.27)    (.13)    (.15)    (.24)    (.34)  
Effect of deferred tax limitation   .51     .94     .95     1.13     1.26   
Effect of trust preferred   (.36)    (.24)    (.25)    (.25)    (.25)  
Effect of preferred equity   -      -      -      -      -    
Basel III intangibles transition adjustment   (.04)    (.04)    (.02)    (.03)    (.06)  
Basel III disallowed investments   -      -      -      -      -    
Tangible common equity to risk-weighted assets   12.11 %   12.80 %   12.44 %   12.07 %   11.84 % 
            
(1)  Fourth quarter 2017 ratios are preliminary.           
            


UNITED COMMUNITY BANKS, INC.           
Non-GAAP Performance Measures Reconciliation           
Selected Financial Information        
            
            
  For the Twelve Months Ended
December 31, 
 
  
(in thousands, except per share data) 2017   2016   2015   2014   2013   
            
Expense reconciliation            
Expenses (GAAP)$  267,611  $  241,289  $  211,238  $  162,865  $  174,304   
Merger-related and other charges   (14,662)    (8,122)    (17,995)    -      -    
Expenses - operating$  252,949  $  233,167  $  193,243  $  162,865  $  174,304   
             
Net income reconciliation           
Net income (GAAP)$  67,821  $  100,656  $  71,578  $  67,620  $  273,140   
Merger-related and other charges   14,662     8,122     17,995     -      -    
Income tax benefit of merger-related and other charges   (3,745)    (3,074)    (6,388)    -      -    
Impact of tax reform on remeasurement of deferred tax asset   38,199     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      976     -      -      -    
Release of disproportionate tax effects lodged in OCI   3,400     -      -      -      -    
Net income - operating$  120,337  $  106,680   $  83,185  $  67,620  $  273,140   
             
Diluted income per common share reconciliation           
Diluted income per common share (GAAP) $ .92  $  1.40  $  1.09   $  1.11  $  4.44   
Merger-related and other charges   .14     .07     .18     -      -    
Impact of tax reform on remeasurement of deferred tax asset   .52      -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options    -      .01     -       -      -    
Release of disproportionate tax effects lodged in OCI   .05     -      -      -      -    
Diluted income per common share - operating$  1.63  $  1.48  $  1.27  $  1.11  $  4.44   
            
Book value per common share reconciliation            
Book value per common share (GAAP) $  16.67  $  15.06  $  14.02  $  12.20  $  11.30   
Effect of goodwill and other intangibles   (3.02)    (2.11)    (1.96)    (.05)    (.04)  
Tangible book value per common share$  13.65  $  12.95  $  12.06  $  12.15  $  11.26   
            
Return on tangible common equity reconciliation           
Return on common equity (GAAP)   5.67 %   9.41 %   8.15 %   9.17 %   46.72 % 
Merger-related and other charges   .92     .48     1.33     -      -    
Impact of tax reform on remeasurement of deferred tax asset   3.20     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      .09     -      -      -    
Release of disproportionate tax effects lodged in OCI    .28     -      -      -      -    
Return on common equity - operating   10.07     9.98     9.48     9.17     46.72   
Effect of goodwill and other intangibles   1.95     1.88     .76     .15     .63   
Return on tangible common equity - operating   12.02 %   11.86 %   10.24 %   9.32 %   47.35 % 
            
Return on assets reconciliation           
Return on assets (GAAP)   .62 %   1.00 %   .85 %   .91 %   3.86  % 
Merger-related and other charges   .09     .05     .13     -      -    
Impact of tax reform on remeasurement of deferred tax asset   .35     -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      .01     -      -      -    
Release of disproportionate tax effects lodged in OCI   .03     -      -       -      -    
Return on assets - operating   1.09 %   1.06 %   .98 %   .91 %   3.86 % 
            
Dividend payout ratio reconciliation           
Dividend payout ratio (GAAP)   41.30 %   21.43 %    20.18 %   9.91 %   -  % 
Merger-related and other charges   (5.65)    (1.02)    (2.86)    -      -    
Impact of tax reform on remeasurement of deferred tax asset   (11.61)    -      -      -      -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      (.14)    -      -      -    
Release of disproportionate tax effects lodged in OCI   (.73)    -      -      -      -    
Dividend payout ratio - operating   23.31 %   20.27 %   17.32 %   9.91 %   -   % 
            
Efficiency ratio reconciliation           
Efficiency ratio (GAAP)   59.95 %   59.80 %   63.96 %   58.26 %   63.14 % 
Merger-related and other charges   (3.28)    (2.02)    (5.45)    -      -    
Efficiency ratio - operating   56.67 %   57.78 %   58.51 %   58.26 %   63.14 % 
            
Average equity to assets reconciliation           
Equity to assets (GAAP) 10.71 % 10.54 % 10.27 %  9.69 % 10.35 % 
Effect of goodwill and other intangibles   (1.42)    (1.33)    (.53)    (.02)    (.04)  
Tangible equity to assets   9.29     9.21     9.74     9.67     10.31   
Effect of preferred equity   -      (.02)     (.08)    (.07)    (2.76)  
Tangible common equity to assets   9.29 %   9.19 %   9.66 %   9.60 %   7.55 % 
            
Tangible common equity to risk-weighted assets reconciliation (1)           
Tier 1 capital ratio (Regulatory)   12.27 %   11.23 %   11.45 %   12.06 %   12.74 % 
Effect of other comprehensive income   (.27)    (.34)    (.38)    (.35)    (.39)  
Effect of deferred tax limitation   .51)    1.26     2.05      3.11     4.26   
Effect of trust preferred   (.36     (.25)    (.08)    (1.00)    (1.04)  
Effect of preferred equity   -          (.15)    -      (2.39)  
Basel III intangibles transition adjustment   (.04)    (.06)    (.10)    -      -    
Basel III disallowed investments   -      -      .03     -      -    
Tangible common equity to risk-weighted assets   12.11 %   11.84 %   12.82 %   13.82 %    13.18 % 
            
(1)  Fourth quarter 2017 ratios are preliminary.            
             


UNITED COMMUNITY BANKS, INC.      
Financial Highlights           
Loan Portfolio Composition at Period-End      
           
           
  2017 2016
   Fourth   Third   Second   First    Fourth 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,924 $  1,792 $  1,723 $  1,633 $  1,650
Income producing commercial RE    1,595    1,413    1,342    1,297    1,282
Commercial & industrial    1,131    1,084    1,088    1,080    1,070
Commercial construction    712    583    587    667    634
Total commercial    5,362    4,872    4,740     4,677    4,636
Residential mortgage    974    933    881    860    857
Home equity lines of credit    731    689    665    659    655
Residential construction    183    190    193    197    190
Consumer installment    486    519    562    572    583
Total loans $  7,736 $  7,203 $  7,041 $  6,965 $  6,921
           
LOANS BY MARKET          
North Georgia $  1,019 $  1,047 $  1,065 $  1,076 $  1,097
Atlanta MSA    1,510    1,477    1,445    1,408    1,399
North Carolina    1,049    542    541    541    545
Coastal Georgia    630    634    623    591    581
Gainesville MSA    248     242    246    252    248
East Tennessee    475    471    486    483    504
South Carolina    1,486    1,470    1,260    1,243    1,233
Commercial Banking Solutions    961    920    926    911    855
Indirect auto    358    400    449    460    459
Total loans $  7,736 $  7,203 $  7,041 $  6,965 $  6,921
           


UNITED COMMUNITY BANKS, INC.      
Financial Highlights          
Loan Portfolio Composition at Period-End       
            
           
  2017 2016 Linked
Quarter
Change
 Year over
Year
Change
   Fourth   Third   Fourth   
(in millions) Quarter Quarter Quarter  
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,924 $  1,792 $  1,650 $  132  $  274 
Income producing commercial RE    1,595    1,413    1,282    182     313 
Commercial & industrial    1,131    1,084    1,070    47     61 
Commercial construction    712    583    634    129     78 
Total commercial    5,362    4,872    4,636    490     726 
Residential mortgage    974    933    857    41     117 
Home equity lines of credit    731    689    655    42     76 
Residential construction    183    190    190    (7)    (7)
Consumer installment    486    519    583    (33)    (97)
Total loans $  7,736 $  7,203 $  6,921    533     815 
           
LOANS BY MARKET          
North Georgia $  1,019 $  1,047 $  1,097    (28)    (78)
Atlanta MSA    1,510    1,477    1,399    33     111 
North Carolina    1,049    542    545    507     504 
Coastal Georgia    630     634    581    (4)    49 
Gainesville MSA    248    242    248    6     -  
East Tennessee    475    471    504    4     (29)
South Carolina    1,486     1,470    1,233    16     253 
Commercial Banking Solutions    961    920    855    41     106 
Indirect auto     358    400    459    (42)    (101)
Total loans $  7,736 $  7,203 $  6,921    533     815 
            


UNITED COMMUNITY BANKS, INC.        
Financial Highlights          
Loan Portfolio Composition at Year-End         
           
           
(in millions)  2017  2016  2015  2014  2013
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,924 $  1,650 $  1,571 $  1,257 $  1,238
Income producing commercial RE    1,595    1,282    1,021    767    807
Commercial & industrial    1,131    1,070    785    710    471
Commercial construction    712    634    518    364    336
Total commercial    5,362    4,636    3,895    3,098     2,852
Residential mortgage    974    857    764    614    604
Home equity lines of credit    731    655    589    456    430
Residential construction    183    190    176     131    136
Consumer installment    486    583    571    373    307
Total loans $  7,736 $  6,921 $  5,995 $  4,672 $  4,329
           
           
LOANS BY MARKET          
North Georgia $  1,019 $  1,097 $  1,125 $  1,163 $  1,240
Atlanta MSA    1,510    1,399    1,259    1,243    1,235
North Carolina    1,049    545    549    553    572
Coastal Georgia    630    581    537    456    423
Gainesville MSA    248    248    254    257    255
East Tennessee    475    504     504    280    280
South Carolina    1,486    1,233    819    30    4
Commercial Banking Solutions    961    855    492    421    124
Indirect auto    358     459    456    269    196
Total loans $  7,736 $  6,921 $  5,995 $  4,672 $  4,329
            


UNITED COMMUNITY BANKS, INC.       
Financial Highlights         
Credit Quality         
          
          
  Fourth Quarter 2017
   Nonperforming   Foreclosed   Total 
(in thousands)  Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY       
Owner occupied CRE $  4,923  $  1,955  $  6,878 
Income producing CRE    3,208     244     3,452 
Commercial & industrial    2,097     -      2,097 
Commercial construction    758     884      1,642 
Total commercial    10,986     3,083     14,069 
Residential mortgage    8,776     136     8,912 
Home equity lines of credit    2,024     15     2,039 
Residential construction    192     -      192 
Consumer installment    1,680     -      1,680 
Total NPAs $  23,658  $  3,234  $  26,892 
          
NONPERFORMING ASSETS BY MARKET       
North Georgia $  7,310  $  94  $  7,404 
Atlanta MSA    1,395     279     1,674 
North Carolina    4,543     1,213     5,756 
Coastal Georgia    2,044     20     2,064 
Gainesville MSA    739     -      739 
East Tennessee    1,462     -      1,462 
South Carolina    3,433      1,059     4,492 
Commercial Banking Solutions    1,095     569     1,664 
Indirect auto    1,637     -      1,637 
Total NPAs $  23,658  $  3,234  $  26,892 
          
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $  22,921  $  2,736  $  25,657 
Acquisitions      659     659 
Loans placed on non-accrual    9,375     -      9,375 
Payments received    (5,495)    -      (5,495)
Loan charge-offs                                                                 (1,747)    -      (1,747)
Foreclosures    (1,396)    2,421     1,025 
Property sales    -      (2,458)    (2,458)
Write downs    -      (117)    (117)
Net gains (losses) on sales    -      (7)    (7)
Ending Balance $  23,658  $  3,234  $  26,892 
          
(1)  Annualized. 


        
UNITED COMMUNITY BANKS, INC.       
Financial Highlights         
Credit Quality         
          
          
  Third Quarter 2017
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY                                                                
Owner occupied CRE $  5,027  $  764  $  5,791 
Income producing CRE    2,042     121     2,163 
Commercial & industrial    2,378     -       2,378 
Commercial construction    1,376     923     2,299 
Total commercial    10,823     1,808     12,631 
Residential mortgage    8,559     392     8,951 
Home equity lines of credit    1,898      195     2,093 
Residential construction    178     341     519 
Consumer installment    1,463     -      1,463 
Total NPAs $  22,921  $         2,736  $       25,657 
          
NONPERFORMING ASSETS BY MARKET                                                      
North Georgia $  6,707  $  404  $  7,111 
Atlanta MSA    1,098     338      1,436 
North Carolina    4,376     318     4,694 
Coastal Georgia    2,532     -      2,532 
Gainesville MSA    763     -      763 
East Tennessee    1,734     67     1,801 
South Carolina    1,903     1,609     3,512 
Commercial Banking Solutions    2,429     -      2,429 
Indirect auto    1,379     -      1,379 
Total NPAs $  22,921  $  2,736  $  25,657 
          
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $  23,095  $  2,739  $  25,834 
Acquisitions    20     805     825 
Loans placed on non-accrual    7,964     -      7,964 
Payments received    (5,192)    -      (5,192)
Loan charge-offs    (2,159)    -      (2,159)
Foreclosures                                                     (807)    683     (124)
Property sales    -      (1,295)    (1,295)
Write downs    -      (236)    (236)
Net gains (losses) on sales    -      40     40 
Ending Balance $  22,921  $  2,736  $  25,657 
          
(1)  Annualized. 


        
UNITED COMMUNITY BANKS, INC.       
Financial Highlights         
Credit Quality         
          
          
  Second Quarter 2017
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties  NPAs
NONPERFORMING ASSETS BY CATEGORY       
Owner occupied CRE                                                                                $  5,248  $  580  $  5,828 
Income producing CRE    2,587      -      2,587 
Commercial & industrial    1,010     -      1,010 
Commercial construction    2,530     611      3,141 
Total commercial    11,375     1,191     12,566 
Residential mortgage    7,886     457     8,343 
Home equity lines of credit    2,152     201     2,353 
Residential construction    287     890     1,177 
Consumer installment    1,395     -      1,395 
Total NPAs $  23,095  $  2,739  $  25,834 
          
NONPERFORMING ASSETS BY MARKET                
North Georgia $  5,449  $  225  $  5,674 
Atlanta MSA    906      423     1,329 
North Carolina    4,700     472     5,172 
Coastal Georgia    2,542     -      2,542 
Gainesville MSA    622     -      622 
East Tennessee    2,216     103     2,319 
South Carolina    3,472      1,516     4,988 
Commercial Banking Solutions    1,914     -      1,914 
Indirect auto    1,274     -      1,274 
Total NPAs $  23,095  $  2,739  $  25,834 
          
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $  19,812  $  5,060  $  24,872 
Acquisitions    -      -      -  
Loans placed on non-accrual    8,110     -       8,110 
Payments received    (2,955)    -      (2,955)
Loan charge-offs    (1,564)    -      (1,564)
Foreclosures    (308)    481     173 
Property sales    -      (2,704)    (2,704)
Write downs    -      (294)    (294)
Net gains (losses) on sales    -      196      196 
Ending Balance $  23,095  $  2,739  $  25,834 
          
(1)  Annualized. 


                 
UNITED COMMUNITY BANKS, INC.                
Financial Highlights                  
Credit Quality                  
                   
                    
  Fourth Quarter 2017 Third Quarter 2017 Second Quarter 2017
      Net Charge-      Net Charge-      Net Charge- 
      Offs to       Offs to      Offs to 
   Net   Average   Net   Average   Net   Average 
(in thousands) Charge-Offs Loans (1)  Charge-Offs Loans (1) Charge-Offs Loans (1)
NET CHARGE-OFFS BY CATEGORY                 
Owner occupied CRE $  (357)   (.08) %  $  (44)   (.01) %  $  37    .01 % 
Income producing CRE    595    .16     1,159    .33     184    .06 
Commercial & industrial    (242)   (.09)     (200)   (.08)     354    .13  
Commercial construction    148    .09     (114)   (.07)     341     .22 
Total commercial    144    .01     801    .07     916    .08 
Residential mortgage    290    .12     313    .14     26     .01 
Home equity lines of credit    137    .08     56    .03     253    .15 
Residential construction    (23)   (.05)     36    .07     (53)   (.11) 
Consumer installment    513    .40     429    .31     481    .34 
Total $  1,061    .06  $  1,635    .09  $  1,623    .09 
                   
NET CHARGE-OFFS BY MARKET                                                  
North Georgia $  64    .02 %  $  516    .19 %  $  681    .26 % 
Atlanta MSA    26    .01     150    .04      (10)   -  
North Carolina    127    .06     221    .16     131    .10 
Coastal Georgia    174    .11     (39)   (.02)     120    .08 
Gainesville MSA    154    .25     (50)   (.08)     (54)   (.09) 
East Tennessee    61    .05      55    .05     27    .02 
South Carolina    95    .03     528    .15     526    .17 
Commercial Banking Solutions    75    .03     (7)   -      (17)   (.01) 
Indirect auto    285    .30     261    .24     219    .19 
Total $  1,061    .06  $  1,635    .09  $  1,623    .09 
                  
(1)  Annualized. 
 


UNITED COMMUNITY BANKS, INC.         
Consolidated Statement of Income (Unaudited)         
          
  Three Months Ended Twelve Months Ended 
  December 31, December 31, 
(in thousands, except per share data)  2017