United Community Banks, Inc. Announces Third Quarter Earnings

Press Release Details

Oct 24, 2017

United Community Banks, Inc. Announces Third Quarter Earnings

Diluted earnings per share up six percent, to 38 cents, from third quarter 2016
Excluding merger-related and other non-operating charges,
diluted operating EPS up five percent, to 41 cents

  • Net interest revenue of $89.8 million, up $10.8 million or 14 percent from year ago
  • Net interest margin of 3.54 percent, up seven basis points from second quarter and up 20 basis points from year ago
  • Return on assets of 1.01 percent, or 1.09 percent excluding merger-related and other charges
  • Efficiency ratio of 59.3 percent, or 56.2 percent excluding merger-related and other charges
  • Completed the acquisition of Horry County State Bank during the quarter

BLAIRSVILLE, Ga., Oct. 24, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced strong third quarter results with meaningful margin expansion, disciplined expense management and sound credit quality.  Net income was $27.9 million, or 38 cents per diluted share, compared with $25.9 million, or 36 cents per diluted share, for the third quarter of 2016.

On an operating basis, net income rose to $30.2 million for the third quarter of 2017 compared with $27.8 million for the third quarter of 2016.  Third quarter 2017 operating net income excludes merger-related and other non-operating charges totaling $2.27 million, net of the associated income tax benefit.  Third quarter 2016 operating net income excludes $1.96 million in merger-related charges, net of the associated income tax benefit.  On a per diluted share basis, operating net income was 41 cents for the third quarter of 2017 compared with 39 cents for the third quarter of 2016.

At September 30, 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 12.2 percent, and Tier 1 Leverage of 9.3 percent.

"Our third quarter results demonstrate United bankers' ability to overcome challenges and produce solid financial results," said Jimmy Tallent, chairman and chief executive officer.  "In the third quarter, we became subject to the Durbin amendment of the Dodd Frank Wall Street Reform and Consumer Protection Act which places a cap on the amount banks can charge merchants for debit card interchange fees.  We also became subject to the large bank deposit insurance assessment model.  The combined effect of these two items reduced our pre-tax earnings by approximately $3.4 million, or three cents per share, in the third quarter.  We had been actively preparing for this for two years and our bankers were able to completely offset the impact through a higher net interest margin and disciplined expense controls.

"Despite these challenges and excluding merger-related and other non-operating charges, our third quarter operating efficiency ratio held steady at 56.2 percent, our best in more than a decade," Tallent stated.  "Including merger and other non-operating charges, the efficiency ratio was 59.3 percent.  Clearly our bankers delivered solid financial performance by every measure."

Tallent continued, "We also completed the acquisition of Horry County State Bank on July 31st, significantly enhancing our presence in the Myrtle Beach area along the South Carolina coast.  The acquisition of Horry County State Bank, which is part of our larger, ongoing expansion strategy in the high-growth South Carolina coast will accelerate our growth in this attractive market.  We are all set for systems conversions in mid-November at which time we expect to achieve all of our cost savings.

"We are scheduled to complete our acquisition of Four Oaks Bank & Trust Company on November 1st which will extend our footprint farther east in North Carolina to the fast-growing Raleigh MSA.  All regulatory and shareholder approvals for the transaction have been received.  We have long sought to enter this market and are delighted to find an exceptional partner in Four Oaks.  I could not be more pleased with these two partnerships and look forward to them becoming part of United.

"Third quarter loan production was $617 million with $434 million originating from our community banks and $183 million from our Commercial Banking Solutions group," Tallent added.  "Linked-quarter loans were up $162 million, mostly reflecting the $216 million in net loans received through our acquisition of Horry County State Bank.  Our indirect auto loan portfolio was down $48.7 million from second quarter reflecting our decision to suspend indirect auto loan purchases.  Excluding the reduction in indirect auto loans and the loans acquired through the Horry acquisition, loan growth was essentially flat from second quarter."

Third quarter net interest revenue totaled $89.8 million, up $10.8 million from the third quarter of 2016 and up $4.6 million from the second quarter.  The increases from both periods reflect business growth and net interest margin expansions of 20 basis points from a year ago and seven basis points from the second quarter, mostly driven by rising short-term interest rates as well as the acquisition of Horry County State Bank which was completed on July 31, 2017Horry County State Bank results are included in United's financial results from the acquisition date.

The third quarter provision for credit losses was $1 million, up from $800,000 for the second quarter.  This compares with a provision recovery of $300,000 in the third quarter of 2016.  Third quarter net charge-offs totaled $1.6 million, equal to the second quarter of 2017 but up slightly from $1.4 million in the third 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 September 30, 2017, compared with .30 percent at September 30, 2016 and .24 percent at June 30, 2017.

"We continue to experience strong, steady credit quality and a low level of net charge-offs which is reflected in our low provision for loan losses," 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 during the year due to loan growth, while our allowance and the related ratio to total loans will decline slightly."

Third quarter fee revenue totaled $20.6 million, down $5.79 million from a year ago and down $3.11 million from the second quarter.  The decrease from both prior periods was mostly due to lower debit card interchange fees as a result of the Durbin amendment becoming effective for United on July 1st.  The Durbin amendment, which places a cap on the amount of interchange banks can charge merchants for use of their debit cards, reduced United's debit card interchange fees by approximately $2.7 million in the third quarter.  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 $65.7 million for the third quarter, compared with $64.0 million for the third quarter of 2016 and $63.2 million for the second quarter.  Included in the third quarter's operating expenses are $2.3 million in merger-related expenses and $1.1 million in surplus property impairment charges, totaling $3.4 million.  We also had merger-related charges of $3.15 million in the third quarter of 2016, and merger-related and executive retirement charges totaling $1.83 million in the second quarter of 2017.  Excluding these charges, third quarter operating expenses were $62.3 million compared with $61.4 million for the second quarter and $60.9 million a year ago.  The $855,000 increase from the second quarter was mostly due to higher deposit insurance costs as a result of being assessed under the large bank deposit insurance assessment model effective July 1, and the operating expenses of Horry County State Bank acquired on July 31.  These increases were partially offset by lower communications and equipment and advertising and public relations expense.

Tallent concluded, "Our bankers always meet every challenge with diligence and perseverance.  That was certainly demonstrated with our third quarter financial results.  Their passion and commitment drive our performance and ensure our success.  Every day I become more encouraged about the opportunities that lie ahead knowing that our exceptional team of bankers will find success in everything they do.  With Horry County State Bank and Four Oaks Bank & Trust Company, we have found two outstanding strategic partners in key growth markets that share our passion for banking and our commitment to customer service.  I am excited about the opportunities that these acquisitions create to recruit other talented bankers from within these markets into the United family."

Conference Call
United will hold a conference call today, Wednesday, October 25, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 90798221.  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 $11.1 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the southeast region's largest full-service banks, operating 142 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 News 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 net income available to common shareholders," "operating diluted income per common 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.

Safe Harbor
This News Release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment.  These statements are based on current expectations and are provided to assist in the understanding of future financial performance.  Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements.  For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission, including our 2016 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors."  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

 

UNITED COMMUNITY BANKS, INC.             
Financial Highlights             
Selected Financial Information             
              
           Third 
  2017   2016  Quarter 
  Third   Second   First   Fourth   Third  2017-2016 
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  Change 
INCOME SUMMARY             
Interest revenue$  98,839  $  93,166  $  90,958  $  87,778  $  85,439     
Interest expense   9,064     8,018     7,404     6,853     6,450     
  Net interest revenue   89,775     85,148     83,554     80,925     78,989    14 % 
Provision for credit losses   1,000     800     800     -      (300)    
Fee revenue   20,573     23,685     22,074     25,233     26,361    (22)  
  Total revenue   109,348     108,033     104,828     106,158     105,650    4   
Expenses   65,674     63,229     62,826     61,321     64,023    3   
Income before income tax expense   43,674     44,804     42,002     44,837     41,627    5   
Income tax expense   15,728     16,537      18,478     17,616     15,753    -   
Net income   27,946     28,267     23,524     27,221     25,874    8   
Merger-related and other charges   3,420     1,830     2,054     1,141     3,152     
Income tax benefit of merger-related and other charges   (1,147)    (675)    (758)    (432)    (1,193)    
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)$   30,219   $   29,422   $   28,220   $   28,906   $   27,833     9   
               
PERFORMANCE MEASURES             
  Per common share:              
  Diluted net income - GAAP $.38   $.39   $ .33   $.38   $  .36    6   
  Diluted net income - operating  (1) .41   .41   .39   .40   .39    5   
  Cash dividends declared .10   .09   .09   .08    .08     
  Book value   16.50     15.83     15.40     15.06      15.12    9   
  Tangible book value (3)   14.11     13.74     13.30     12.95     13.00    9    
              
  Key performance ratios:             
  Return on common equity - GAAP (2)(4)   9.22 %   9.98 %   8.54 %   9.89 %   9.61 %  
  Return on common equity - operating (1)(2)(4)   9.97     10.39     10.25     10.51     10.34     
  Return on tangible common equity - operating (1)(2)(3)(4)   11.93     12.19     12.10     12.47     12.45     
  Return on assets - GAAP (4)   1.01     1.06   .89     1.03     1.00     
  Return on assets - operating (1)(4)   1.09     1.10     1.07     1.10     1.08     
  Dividend payout ratio - GAAP   26.32     23.08     27.27     21.05     22.22     
  Dividend payout ratio - operating (1)   24.39     21.95     23.08     20.00     20.51      
  Net interest margin (fully taxable equivalent) (4)   3.54     3.47     3.45     3.34     3.34     
  Efficiency ratio - GAAP   59.27     57.89     59.29     57.65     60.78     
  Efficiency ratio - operating  (1)   56.18     56.21     57.35     56.58     57.79     
  Average equity to average assets   10.86     10.49   10.24   10.35   10.38     
  Average tangible equity to average assets (3)   9.45     9.23   8.96    9.04   8.98     
  Average tangible common equity to average assets (3)   9.45     9.23   8.96   9.04   8.98     
  Tangible common equity to risk-weighted assets (3)(5)   12.81     12.44     12.07     11.84     12.22     
              
ASSET QUALITY             
  Nonperforming loans$  22,921  $  23,095  $  19,812  $  21,539  $  21,572    6   
  Foreclosed properties   2,736     2,739     5,060     7,949     9,187    (70)  
  Total nonperforming assets (NPAs)   25,657     25,834      24,872     29,488     30,759    (17)  
  Allowance for loan losses   58,605     59,500     60,543     61,422     62,961    (7)  
  Net charge-offs   1,635     1,623     1,679     1,539     1,359    20   
  Allowance for loan losses to loans .81 % .85 % .87 %   .89  %  .94  %    
  Net charge-offs to average loans (4) .09   .09   .10   .09   .08     
  NPAs to loans and foreclosed properties .36   .37   .36
   .43   .46     
  NPAs to total assets .23   .24   .23   .28   .30     
               
AVERAGE BALANCES ($ in millions)             
  Loans$  7,149  $  6,980  $  6,904  $  6,814  $  6,675    7   
  Investment securities   2,800     2,775     2,822     2,690     2,610    7   
  Earning assets   10,133     9,899     9,872     9,665     9,443    7   
  Total assets    10,980     10,704     10,677     10,484     10,281    7   
  Deposits   8,913     8,659     8,592     8,552     8,307    7   
  Shareholders' equity   1,193     1,123     1,093     1,085     1,067    12   
  Common shares - basic (thousands)   73,151     71,810     71,700     71,641     71,556    2   
  Common shares - diluted (thousands)   73,162     71,820     71,708     71,648     71,561    2   
              
AT PERIOD END ($ in millions)             
  Loans$  7,203  $  7,041  $  6,965  $  6,921  $  6,725    7   
  Investment securities   2,847     2,787     2,767     2,762     2,560    11   
  Total assets   11,129     10,837     10,732     10,709     10,298    8   
  Deposits   9,127     8,736     8,752     8,638     8,442    8   
  Shareholders' equity   1,221     1,133     1,102     1,076     1,079    13   
  Common shares outstanding (thousands)   73,403     70,981     70,973     70,899     70,861    4   
              
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, 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 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)  Third quarter 2017 ratio is preliminary. 
              

 

UNITED COMMUNITY BANKS, INC.       
Financial Highlights        
Selected Financial Information       
        
 For the Nine   
 Months Ended YTD 
 September 30, 2017-2016 
(in thousands, except per share data) 2017   2016   Change 
INCOME SUMMARY       
Interest revenue$  282,963  $  247,242     
Interest expense   24,486     18,383     
  Net interest revenue   258,477     228,859    13 % 
Provision for credit losses   2,600     (800)    
Fee revenue   66,332     68,464    (3)  
  Total revenue   322,209     298,123    8   
Expenses   191,729     179,968    7   
Income before income tax expense   130,480     118,155    10   
Income tax expense   50,743     44,720    13   
Net income   79,737     73,435    9   
Merger-related and other charges   7,304     6,981     
Income tax benefit of merger-related and other charges   (2,580)    (2,642)    
Impairment of deferred tax asset on canceled
  non-qualified stock options
   -      -      
Release of disproportionate tax effects lodged in OCI   3,400     -      
  Net income - operating (1)$   87,861   $   77,774     13    
        
PERFORMANCE MEASURES       
  Per common share:       
  Diluted net income - GAAP$  1.10  $  1.02    8   
  Diluted net income - operating  (1)   1.21     1.08     12   
  Cash dividends declared .28   .22     
  Book value   16.50     15.12    9   
  Tangible book value (3)   14.11     13.00    9   
        
  Key performance ratios:       
  Return on common equity - GAAP (2)(4)   9.26 %   9.25 %  
  Return on common equity - operating (1)(2)(4)   10.20     9.79     
  Return on tangible common equity - operating (1)(2)(3)(4)   12.07     11.64     
  Return on assets - GAAP (4)   .99   .99     
  Return on assets - operating (1)(4)   1.09     1.05     
  Dividend payout ratio - GAAP   25.45     21.57     
  Dividend payout ratio - operating (1)   23.14      20.37     
  Net interest margin (fully taxable equivalent) (4)   3.49     3.36     
  Efficiency ratio - GAAP   58.81     60.56     
  Efficiency ratio - operating  (1)   56.57     58.21     
  Average equity to average assets   10.54   10.60     
  Average tangible equity to average assets (3)   9.21   9.27     
  Average tangible common equity to average assets (3)   9.21   9.24     
  Tangible common equity to risk-weighted assets (3)(5)   12.81   12.22     
         
ASSET QUALITY       
  Nonperforming loans$  22,921  $  21,572    6   
  Foreclosed properties    2,736     9,187    (70)  
  Total nonperforming assets (NPAs)   25,657     30,759    (17)  
  Allowance for loan losses   58,605     62,961    (7)  
  Net charge-offs   4,937     5,227    (6)  
  Allowance for loan losses to loans   .81  .94    
  Net charge-offs to average loans (4) .09   .11     
  NPAs to loans and foreclosed properties .36   .46     
  NPAs to total assets .23   .30     
        
AVERAGE BALANCES ($ in millions)       
  Loans$  7,012  $  6,278    12   
  Investment securities    2,799     2,692    4    
  Earning assets   9,969     9,120    9   
  Total assets   10,788     9,909    9   
  Deposits   8,723     8,051    8   
  Shareholders' equity   1,137     1,051    8   
  Common shares - basic (thousands)   72,060     71,992    -    
  Common shares - diluted (thousands)   72,071      71,996    -    
        
AT PERIOD END ($ in millions)       
  Loans $  7,203  $  6,725    7   
  Investment securities   2,847     2,560    11   
  Total assets   11,129     10,298    8   
  Deposits   9,127     8,442    8   
  Shareholders' equity   1,221     1,079    13   
  Common shares outstanding (thousands)   73,403     70,861    4   
        
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, 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 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)  Third quarter 2017 ratio is preliminary. 
        

 

UNITED COMMUNITY BANKS, INC.           
Non-GAAP Performance Measures Reconciliation           
Selected Financial Information           
            
            
  2017   2016 
  Third   Second   First   Fourth   Third   
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  
            
Expense reconciliation           
Expenses (GAAP)$  65,674  $  63,229  $  62,826  $  61,321  $  64,023   
Merger-related and other charges   (3,420)     (1,830)    (2,054)    (1,141)    (3,152)  
  Expenses - operating$  62,254  $  61,399  $  60,772  $  60,180  $  60,871   
            
Net income reconciliation            
Net income (GAAP)$  27,946  $  28,267  $  23,524  $  27,221  $  25,874   
Merger-related and other charges   3,420     1,830     2,054     1,141     3,152   
Income tax benefit of merger-related and other charges   (1,147)    (675)    (758)     (432)    (1,193)  
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$  30,219  $  29,422  $  28,220  $  28,906  $  27,833   
            
Diluted income per common share reconciliation           
Diluted income per common share (GAAP) $.38   $  .39   $  .33   $  .38   $  .36    
Merger-related and other charges .03   .02   .01   .01   .03   
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 $  .41   $  .41   $  .39   $  .40   $  .39   
            
Book value per common share reconciliation           
Book value per common share (GAAP)$  16.50  $  15.83  $  15.40  $  15.06  $  15.12   
Effect of goodwill and other intangibles   (2.39)    (2.09)    (2.10)     (2.11)    (2.12)  
  Tangible book value per common share$  14.11  $  13.74  $  13.30  $  12.95  $  13.00   
             
Return on tangible common equity reconciliation           
Return on common equity (GAAP)   9.22 %   9.98 %   8.54 %   9.89 %   9.61 % 
Merger-related and other charges .75   .41   .47   .26   .73   
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   9.97     10.39     10.25     10.51     10.34   
Effect of goodwill and other intangibles   1.96     1.80     1.85     1.96     2.11   
  Return on tangible common equity - operating   11.93 %   12.19 %   12.10 %   12.47 %   12.45 % 
             
Return on assets reconciliation           
Return on assets (GAAP)   1.01 %   1.06 % .89 %   1.03 %   1.00 % 
Merger-related and other charges .08   .04   .05   .03   .08   
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   1.09 %   1.10 %   1.07 %   1.10 %   1.08 % 
            
Dividend payout ratio reconciliation           
Dividend payout ratio (GAAP)   26.32 %   23.08 %   27.27 %   21.05 %   22.22 % 
Merger-related and other charges   (1.93)    (1.13)  (.98)  (.54)    (1.71)  
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   24.39 %   21.95 %   23.08 %   20.00 %   20.51 %  
            
Efficiency ratio reconciliation           
Efficiency ratio (GAAP)   59.27 %   57.89 %   59.29 %   57.65 %   60.78 % 
Merger-related and other charges   (3.09)    (1.68)    (1.94)    (1.07)    (2.99)  
  Efficiency ratio - operating   56.18 %   56.21 %   57.35 %   56.58 %   57.79 % 
            
Average equity to assets reconciliation           
Equity to assets (GAAP)   10.86 %   10.49 %   10.24 %   10.35 %   10.38 % 
Effect of goodwill and other intangibles   (1.41)    (1.26)    (1.28)    (1.31)    (1.40)  
  Tangible equity to assets   9.45     9.23     8.96     9.04     8.98   
Effect of preferred equity   -      -      -      -      -    
  Tangible common equity to assets   9.45 %   9.23 %   8.96 %   9.04 %    8.98 % 
            
Tangible common equity to risk-weighted assets reconciliation (1)           
Tier 1 capital ratio (Regulatory)   12.27 %   11.91 %   11.46 %   11.23 %   11.04 % 
Effect of other comprehensive income (.13)  (.15)  (.24)  (.34)    -    
Effect of deferred tax limitation .94   .95     1.13     1.26     1.50   
Effect of trust preferred (.24)  (.25)  (.25)  (.25)  (.26)  
Basel III intangibles transition adjustment (.03)  (.02)  (.03)  (.06)  (.06)  
  Tangible common equity to risk-weighted assets   12.81 %   12.44 %   12.07 %   11.84 %   12.22 % 
            
(1)  Third quarter 2017 ratios are preliminary.           
            

 

UNITED COMMUNITY BANKS, INC.     
Non-GAAP Performance Measures Reconciliation     
Selected Financial Information     
      
      
  For the Nine Months Ended
June 30, 
 
  
(in thousands, except per share data) 2017   2016   
      
Expense reconciliation     
Expenses (GAAP)$  191,729  $  179,968   
Merger-related and other charges   (7,304)    (6,981)  
  Expenses - operating$  184,425  $  172,987   
      
Net income reconciliation     
Net income (GAAP)$  79,737  $  73,435   
Merger-related and other charges   7,304     6,981   
Income tax benefit of merger-related and other charges   (2,580)    (2,642)  
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI   3,400     -    
  Net income - operating$  87,861  $  77,774   
       
Diluted income per common share reconciliation     
Diluted income per common share (GAAP)$  1.10  $  1.02   
Merger-related and other charges .06     -    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI .05     -    
  Diluted income per common share - operating$  1.21  $  1.02   
      
Book value per common share reconciliation     
Book value per common share (GAAP)$  16.50  $  15.12   
Effect of goodwill and other intangibles   (2.39)    (2.12)  
  Tangible book value per common share$  14.11  $  13.00   
      
Return on tangible common equity reconciliation     
Return on common equity (GAAP)   9.26 %   9.25 % 
Merger-related and other charges .55   .54   
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI .39     -    
Return on common equity - operating   10.20     9.79   
Effect of goodwill and other intangibles   1.87     1.85   
  Return on tangible common equity - operating   12.07 %   11.64 % 
      
Return on assets reconciliation     
Return on assets (GAAP) .99 % .99 % 
Merger-related and other charges .06    .06   
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI .04     -    
  Return on assets - operating   1.09 %   1.05 % 
      
Dividend payout ratio reconciliation     
Dividend payout ratio (GAAP)   25.45 %   21.57 % 
Merger-related and other charges   (1.31)    (1.20)  
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI   (1.00)     -    
  Dividend payout ratio - operating   23.14 %   20.37 % 
      
Efficiency ratio reconciliation     
Efficiency ratio (GAAP)   58.81 %   60.56 % 
Merger-related and other charges   (2.24)    (2.35)  
  Efficiency ratio - operating   56.57 %   58.21 % 
       
Average equity to assets reconciliation     
Equity to assets (GAAP) 10.54 % 10.60 % 
Effect of goodwill and other intangibles   (1.33)    (1.33)  
  Tangible equity to assets   9.21     9.27   
Effect of preferred equity   -    (.03)  
  Tangible common equity to assets   9.21 %   9.24  % 
      
Tangible common equity to risk-weighted assets reconciliation (1)     
Tier 1 capital ratio (Regulatory)   12.27 %   11.04 % 
Effect of other comprehensive income (.13)    -    
Effect of deferred tax limitation .94     1.50   
Effect of trust preferred (.24)  (.26)  
Basel III intangibles transition adjustment (.03)  (.06)  
  Tangible common equity to risk-weighted assets   12.81 %   12.22 % 
      
(1)  Third quarter 2017 ratios are preliminary.     
      

 

UNITED COMMUNITY BANKS, INC.      
Financial Highlights          
Loan Portfolio Composition at Period-End      
           
            
   2017
  2016
   Third   Second   First   Fourth   Third 
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,792 $  1,723 $  1,633 $  1,650 $  1,587
Income producing commercial RE    1,413    1,342    1,297    1,282    1,277
Commercial & industrial    1,084    1,088    1,080    1,070    994
Commercial construction    583    587    667    634    567
  Total commercial    4,872    4,740    4,677    4,636    4,425
Residential mortgage    933    881    860    857    814
Home equity lines of credit    689    665    659    655    693
Residential construction    190    193    197    190    200
Consumer installment    519    562    572    583    593
  Total loans $  7,203  $  7,041 $  6,965 $  6,921 $  6,725
           
LOANS BY MARKET           
North Georgia $  1,047 $  1,065 $  1,076 $  1,097 $  1,110
Atlanta MSA    1,477     1,445    1,408    1,399    1,332
North Carolina    542    541    541    545    548
Coastal Georgia    634    623    591    581    565
Gainesville MSA     242    246    252    248    236
East Tennessee    471    486    483    504    506
South Carolina    1,470    1,260    1,243    1,233    1,199
Commercial Banking Solutions    920    926    911    855    763
Indirect auto    400    449    460    459    466
  Total loans $  7,203 $  7,041 $  6,965 $  6,921 $  6,725
           

 

UNITED COMMUNITY BANKS, INC.      
Financial Highlights          
Loan Portfolio Composition at Period-End       
           
           
   2017
  2016 Linked
Quarter
Change
 Year over
Year
Change
   Third   Second   Third   
(in millions) Quarter Quarter Quarter   
LOANS BY CATEGORY          
Owner occupied commercial RE $  1,792 $  1,723 $  1,587 $  69  $  205 
Income producing commercial RE    1,413    1,342    1,277    71     136 
Commercial & industrial    1,084    1,088    994    (4)    90 
Commercial construction     583    587    567    (4)    16 
  Total commercial    4,872    4,740    4,425    132     447 
Residential mortgage    933    881    814    52     119 
Home equity lines of credit    689    665    693    24     (4)
Residential construction    190    193    200    (3)    (10)
Consumer installment    519    562    593    (43)    (74)
  Total loans $  7,203 $  7,041 $  6,725    162     478 
           
LOANS BY MARKET          
North Georgia $  1,047 $  1,065 $  1,110    (18)    (63)
Atlanta MSA    1,477    1,445    1,332    32     145 
North Carolina    542    541    548    1     (6)
Coastal Georgia    634    623    565    11     69 
Gainesville MSA    242    246    236    (4)    6 
East Tennessee    471    486    506    (15)    (35)
South Carolina    1,470    1,260    1,199    210     271 
Commercial Banking Solutions    920    926    763    (6)    157 
Indirect auto    400    449    466    (49)    (66)
  Total loans $  7,203 $  7,041 $  6,725    162     478 
           

 

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 
          

 

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 
          

 

UNITED COMMUNITY BANKS, INC.       
Financial Highlights         
Credit Quality         
          
          
  First Quarter 2017
   Nonperforming   Foreclosed   Total 
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY       
Owner occupied CRE $  6,135  $  1,238  $  7,373 
Income producing CRE    1,540     21     1,561 
Commercial & industrial    929     -      929 
Commercial construction    1,069      2,825     3,894 
  Total commercial    9,673     4,084     13,757 
Residential mortgage    6,455     660     7,115 
Home equity lines of credit    1,848     261     2,109 
Residential construction    417     55     472 
Consumer installment    1,419     -      1,419 
  Total NPAs $  19,812  $  5,060  $  24,872 
          
NONPERFORMING ASSETS BY MARKET       
North Georgia $  5,344  $  570  $  5,914 
Atlanta MSA    715     645      1,360 
North Carolina    4,897     355     5,252 
Coastal Georgia    942     -      942 
Gainesville MSA    728     -      728 
East Tennessee    2,112     633     2,745 
South Carolina    1,725     2,857     4,582 
Commercial Banking Solutions    2,032     -      2,032 
Indirect auto    1,317     -      1,317 
  Total NPAs $  19,812  $  5,060  $  24,872 
           
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $  21,539  $  7,949  $  29,488 
Acquisitions    -      -       -  
Loans placed on non-accrual    3,172     -      3,172 
Payments received    (3,046)    -      (3,046)
Loan charge-offs    (1,292)    -      (1,292)
Foreclosures    (561)    561     -  
Property sales    -      (3,077)    (3,077)
Write downs    -      (480)    (480)
Net gains (losses) on sales    -      107     107 
  Ending Balance $  19,812  $  5,060  $  24,872 
          

 

UNITED COMMUNITY BANKS, INC.                 
Financial Highlights                  
Credit Quality                  
                   
                   
  Third Quarter 2017 Second Quarter 2017 First 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 $  (44)   (.01) %  $  37    .01 %  $  (212)   (.05) % 
Income producing CRE    1,159    .33     184    .06     870    .28 
Commercial & industrial    (200)   (.08)     354    .13     (152)   (.06) 
Commercial construction    (114)   (.07)     341    .22     (370)   (.23) 
  Total commercial    801     .07     916    .08     136    .01 
Residential mortgage    313    .14     26    .01     530     .25 
Home equity lines of credit    56    .03     253    .15     422    .26 
Residential construction    36    .07     (53)   (.11)     (9)   (.02) 
Consumer installment    429    .31     481    .34     600    .42 
  Total $  1,635    .09  $  1,623    .09  $  1,679    .10 
                    
NET CHARGE-OFFS BY MARKET                  
North Georgia $  516    .19 %  $  681    .26 %  $  15    .01 % 
Atlanta MSA    150    .04     (10)   -      (46)   (.01) 
North Carolina    221    .16     131    .10     601     .45 
Coastal Georgia    (39)   (.02)     120    .08     (223)   (.15) 
Gainesville MSA    (50)   (.08)     (54)   (.09)     358    .58 
East Tennessee    55    .05     27    .02     55    .05 
South Carolina    528    .15     526    .17     425    .14 
Commercial Banking Solutions    (7)   -      (17)   (.01)     195    .09 
Indirect auto    261    .24     219    .19     299    .27 
  Total $  1,635    .09  $  1,623    .09  $  1,679    .10 
                   
(1)  Annualized. 

 

UNITED COMMUNITY BANKS, INC.         
Consolidated Statement of Income (Unaudited)         
           
  Three Months Ended Nine Months Ended 
  September 30, September 30, 
(in thousands, except per share data)  2017  2016   2017  2016  
          
Interest revenue:         
Loans, including fees $  80,264 $  69,440  $  227,816 $   196,888  
Investment securities, including tax exempt of $671, $134, $1,307, and $449    17,875    15,418     53,365    48,039  
Deposits in banks and short-term investments    700    581     1,782    2,315  
Total interest revenue    98,839    85,439     282,963    247,242  
          
Interest expense:          
Deposits:         
NOW    700    452     1,932    1,381  
Money market    1,953    1,347     4,938    3,661  
Savings    34    43     89    102  
Time    1,870    667     4,257    2,052  
Total deposit interest expense    4,557    2,509     11,216    7,196  
Short-term borrowings    36    98     177    278  
Federal Home Loan Bank advances    1,709    1,015     4,603    2,731  
Long-term debt    2,762    2,828     8,490     8,178  
Total interest expense    9,064    6,450     24,486    18,383  
Net interest revenue    89,775    78,989      258,477    228,859  
(Release of) provision for credit losses    1,000    (300)    2,600    (800) 
Net interest revenue after provision for credit losses    88,775    79,289     255,877    229,659  
          
Fee revenue:         
Service charges and fees    8,220    10,819     29,525    31,460  
Mortgage loan and other related fees    4,200    6,039     13,435     13,776  
Brokerage fees    1,009    1,199     3,565    3,369  
Gains from sales of SBA/USDA loans    2,806    2,479     7,391    6,517  
Securities gains, net    188    261     190    922  
Other     4,150    5,564     12,226    12,420  
Total fee revenue    20,573    26,361     66,332    68,464  
Total revenue    109,348     105,650     322,209    298,123  
          
Operating expenses:         
Salaries and employee benefits    38,027    36,478     112,056    103,112  
Communications and equipment    4,547    4,919     14,443    13,602  
Occupancy    4,945    5,132     14,802    14,393  
Advertising and public relations    1,026    1,088     3,347    3,275  
Postage, printing and supplies    1,411    1,451     4,127    4,029  
Professional fees    2,976    3,160     8,391    9,049  
FDIC assessments and other regulatory charges    2,127    1,412     4,758    4,453  
Amortization of intangibles    1,212    1,119     3,085    3,116  
Merger-related and other charges    3,176    3,152     7,060     6,981  
Other     6,227    6,112     19,660    17,958  
Total operating expenses    65,674    64,023     191,729    179,968  
Net income before income taxes    43,674    41,627     130,480    118,155  
Income tax expense    15,728    15,753     50,743    44,720  
Net income $  27,946 $  25,874   $  79,737 $  73,435  
          
Net income available to common shareholders $  27,719 $  25,874  $  79,078 $  73,414  
          
Earnings per common share:         
  Basic  $  .38  $  .36  $  1.10 $  1.02  
  Diluted  .38  .36     1.10    1.02  
Weighted average common shares outstanding:          
  Basic    73,151    71,556     72,060    71,992  
  Diluted    73,162    71,561     72,071    71,996  
          

 

UNITED COMMUNITY BANKS, INC.    
Consolidated Balance Sheet (Unaudited)    
     
  September 30, December 31,
(in thousands, except share and per share data)  2017   2016 
     
ASSETS    
  Cash and due from banks $  98,396  $  99,489 
  Interest-bearing deposits in banks    148,449     117,859 
  Cash and cash equivalents    246,845     217,348 
  Securities available for sale     2,540,470     2,432,438 
  Securities held to maturity (fair value $310,446 and $333,170)    306,741     329,843 
  Mortgage loans held for sale (includes $30,093 and $27,891 at fair value)     30,292     29,878 
  Loans, net of unearned income    7,202,937     6,920,636 
  Less allowance for loan losses    (58,605)    (61,422)
  Loans, net    7,144,332     6,859,214 
  Premises and equipment, net    193,915     189,938 
  Bank owned life insurance    167,680     143,543 
  Accrued interest receivable    29,573     28,018 
  Net deferred tax asset    128,731     154,336 
  Derivative financial instruments    20,972     23,688 
  Goodwill and other intangible assets    182,716     156,222 
  Other assets    136,760     144,189 
  Total assets $  11,129,027  $  10,708,655 
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
  Deposits:    
  Demand $  2,918,428  $  2,637,004 
  NOW    1,938,352     1,989,763 
  Money market    1,934,169     1,846,440 
  Savings    605,230     549,713 
  Time    1,363,949     1,287,142 
  Brokered    367,256      327,496 
  Total deposits    9,127,384      8,637,558 
  Short-term borrowings    16,005     5,000 
  Federal Home Loan Bank advances    494,484     709,209 
  Long-term debt    135,707     175,078 
  Derivative financial instruments    22,926     27,648 
  Accrued expenses and other liabilities    111,881     78,427 
  Total liabilities    9,908,387     9,632,920 
Shareholders' equity:    
  Common stock, $1 par value; 150,000,000 shares authorized;    
  73,403,453 and 70,899,114 shares issued and outstanding    73,403     70,899 
  Common stock issuable; 588,445 and 519,874 shares    8,703     7,327 
  Capital surplus    1,341,346     1,275,849 
  Accumulated deficit    (192,128)    (251,857)
  Accumulated other comprehensive loss    (10,684)    (26,483)
  Total shareholders' equity    1,220,640     1,075,735 
  Total liabilities and shareholders' equity $  11,129,027  $  10,708,655 
     

 

UNITED COMMUNITY BANKS, INC.            
Average Consolidated Balance Sheets and Net Interest Analysis          
For the Three Months Ended September 30            
             
    2017      2016    
   Average    Avg.    Average   Avg.  
(dollars in thousands, fully taxable equivalent (FTE))  Balance    Interest Rate    Balance    Interest Rate  
Assets:            
Interest-earning assets:            
  Loans, net of unearned income (FTE) (1)(2)$  7,149,348  $  80,3014.46% $  6,675,328  $  69,427 4.14% 
  Taxable securities (3)   2,695,162     17,2042.55     2,588,037     15,284 2.36  
  Tax-exempt securities (FTE) (1)(3)   105,151     1,0984.18     22,113     219 3.96  
  Federal funds sold and other interest-earning assets   183,170     8831.93     157,972     754 1.91  
             
  Total interest-earning assets (FTE)   10,132,831     99,4863.90     9,443,450     85,684 3.61  
Non-interest-earning assets:            
  Allowance for loan losses   (60,098)        (63,874)     
  Cash and due from banks   103,477         100,775      
  Premises and equipment   203,579         198,234      
  Other assets (3)   599,725         602,690      
  Total assets$  10,979,514      $  10,281,275       
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
  Interest-bearing deposits:            
NOW$  1,863,160     700.15  $  1,744,473     452 .10  
Money market   2,170,148     1,953.36      1,997,165     1,347 .27  
Savings   593,823     34.02     537,447     43 .03  
Time   1,338,786     1,548.46     1,375,706     833 .24  
Brokered time deposits   109,811     3221.16     162,255     (166)(.41)  
  Total interest-bearing deposits   6,075,728       4,557.30     5,817,046       2,509 .17  
             
Federal funds purchased and other borrowings   11,313     361.26     42,234      98 .92  
Federal Home Loan Bank advances   574,404     1,7091.18     583,312     1,015 .69  
Long-term debt   154,616     2,7627.09     177,333     2,828 6.34  
  Total borrowed funds   740,333     4,5072.42     802,879     3,941 1.95  
             
  Total interest-bearing liabilities   6,816,061     9,064.53     6,619,925     6,450 .39  
Non-interest-bearing liabilities:            
  Non-interest-bearing deposits   2,837,378          2,490,019      
  Other liabilities   133,212         103,859       
  Total liabilities   9,786,651         9,213,803      
Shareholders' equity   1,192,863         1,067,472      
  Total liabilities and shareholders' equity$  10,979,514       $  10,281,275       
             
Net interest revenue (FTE)  $  90,422     $  79,234    
Net interest-rate spread (FTE)   3.37%    3.22% 
             
Net interest margin (FTE) (4)   3.54%    3.34% 
              
(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 $12.6 million in 2017 and $30.4 million in 2016 are   
  included in other assets for purposes of this presentation.           
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.       
             

 

UNITED COMMUNITY BANKS, INC.            
Average Consolidated Balance Sheets and Net Interest Analysis         
For the Nine Months Ended September 30,            
             
    2017      2016    
  Average   Avg.   Average   Avg.  
(dollars in thousands, fully taxable equivalent (FTE)) Balance   Interest Rate    Balance   Interest Rate  
Assets:             
Interest-earning assets:            
  Loans, net of unearned income (FTE) (1)(2)$  7,011,962  $  227,8534.34% $  6,277,972  $  196,956 4.19% 
  Taxable securities (3)   2,731,081     52,0582.54     2,665,272     47,590 2.38  
  Tax-exempt securities (FTE) (1)(3)   68,005     2,1394.19     26,415     735 3.71  
  Federal funds sold and other interest-earning assets   157,582     2,2901.94     150,146      2,719 2.41  
              
  Total interest-earning assets (FTE)   9,968,630     284,3403.81     9,119,805     248,000 3.63  
Non-interest-earning assets:            
  Allowance for loan losses   (60,971)        (66,142)     
  Cash and due from banks   102,529         93,802      
  Premises and equipment   195,576         187,019      
  Other assets (3)   582,194         574,870      
  Total assets$  10,787,958      $  9,909,354      
             
Liabilities and Shareholders' Equity:             
Interest-bearing liabilities:            
  Interest-bearing deposits:             
NOW$  1,907,889     1,932.14  $  1,795,372     1,381 .10  
Money market   2,100,296     4,938.31     1,901,903     3,661 .26  
Savings   576,927     89.02     505,337      102 .03  
Time   1,292,521     3,499.36     1,280,503      2,325 .24  
Brokered time deposits   106,753     758.95     194,199     (273)(.19)  
  Total interest-bearing deposits   5,984,386     11,216.25     5,677,314     7,196 .17  
             
Federal funds purchased and other borrowings   22,525     1771.05     29,427     278 1.26  
Federal Home Loan Bank advances   616,388      4,6031.00     506,524     2,731 .72  
Long-term debt    168,271     8,4906.75     168,955     8,178  6.47  
  Total borrowed funds   807,184     13,2702.20     704,906     11,187 2.12  
             
  Total interest-bearing liabilities   6,791,570     24,486.48     6,382,220     18,383 .38  
Non-interest-bearing liabilities:            
  Non-interest-bearing deposits   2,738,118          2,374,076      
  Other liabilities   121,672         102,421      
  Total liabilities   9,651,360         8,858,717      
Shareholders' equity   1,136,598         1,050,637      
  Total liabilities and shareholders' equity$  10,787,958       $  9,909,354      
             
Net interest revenue (FTE)  $  259,854     $  229,617    
Net interest-rate spread (FTE)   3.33%    3.25% 
             
Net interest margin (FTE) (4)   3.49%    3.36% 
             
(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 $4.67 million in 2017 and $15.1 million in 2016 are   
  included in other assets for purposes of this presentation.            
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.       
              

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

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Source: United Community Banks, Inc.

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