United Community Banks, Inc.
Jul 26, 2017

United Community Banks, Inc. Announces Second Quarter Earnings

 Diluted earnings per share up 11 percent, to 39 cents, from second quarter 2016
Excluding merger-related and other non-operating charges,
diluted operating EPS up 14 percent, to 41 cents

BLAIRSVILLE, Ga., July 26, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced strong second quarter results with disciplined expense management, sound credit quality and meaningful margin expansion.  Net income was $28.3 million, or 39 cents per diluted share, compared with $25.3 million, or 35 cents per diluted share, for the second quarter of 2016.

On an operating basis, net income rose to $29.4 million for the second quarter of 2017 compared with $26.0 million for the second quarter of 2016.  Second quarter 2017 operating net income excludes merger-related and executive retirement charges totaling $1.16 million, net of the associated income tax benefit.  Second quarter 2016 operating net income excludes $731,000 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 second quarter of 2017 compared with 36 cents for the second quarter of 2016.

At June 30, 2017, preliminary regulatory capital ratios were as follows. Tier 1 Risk-Based of 11.9 percent; Total Risk-Based of 12.7 percent; Common Equity Tier 1 Risk-Based of 11.9 percent, and Tier 1 Leverage of 9.0 percent.

"From both financial and strategic perspectives, I am very pleased with our second quarter performance," said Jimmy Tallent, chairman and chief executive officer.  "It marks our twelfth consecutive quarter of double-digit growth in diluted operating earnings per share, which is a key driver of stock price appreciation.  We accomplished this by growing loans and deposits in a disciplined manner that slightly widened our net interest margin and maintained our outstanding credit quality.

"Excluding merger-related and other non-operating charges, our second quarter operating efficiency ratio improved to 56.2 percent, surpassing the fourth quarter record which was the best in more than a decade," Tallent continued.  "Including those charges, the efficiency ratio was 57.9 percent.  From a financial perspective, our bankers delivered solid performance by every measure."

Tallent said the second quarter was also remarkable from a strategic perspective.  "We announced two strategic partnerships during the quarter that will expand and enhance our footprint in dynamic, high-growth markets," he said.  "On April 20, we announced the Horry County State Bank acquisition which will close in the third quarter and significantly enhance our presence in the Myrtle Beach area along the South Carolina coast.  The acquisition of Horry County State Bank is part of our larger, ongoing expansion strategy in the high-growth South Carolina coastal markets.

"On June 27, we announced our planned acquisition of Four Oaks Bank & Trust Company, which should close in the fourth quarter and will extend our footprint farther east in North Carolina to the fast-growing Raleigh MSA.  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.

"Second quarter loan production was $667 million," Tallent added.  "Linked-quarter loan growth was $76 million, or four percent annualized.  Our community banks originated $461 million in loans, while our recently renamed Commercial Banking Solutions group produced $166 million."

Commercial Banking Solutions, previously named Specialized Lending, encompasses commercial lending for income property, middle market, SBA, asset-based, senior care, builder finance and recently announced renewable energy.

Second quarter net interest revenue totaled $85.1 million, up $10.2 million from the second quarter of 2016 and up $1.6 million from the first quarter.  The increases from both periods reflect growth in loans and deposits and net interest margin expansions of 12 basis points from a year ago and two basis points from the first quarter, mostly driven by rising short-term interest rates.  The increase in net interest revenue from a year ago also reflects the acquisition of Tidelands Bank which was completed on July 1, 2016Tidelands Bank results are included in United's financial results from the acquisition date.

The second quarter provision for credit losses was $800,000, equal to the first quarter provision.  This compares with a provision recovery of $300,000 in the second quarter of 2016.  Second quarter net charge-offs totaled $1.6 million, compared with $1.7 million in both the second quarter of 2016 and the first quarter of 2017.  Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans.  Nonperforming assets were .24 percent of total assets at June 30, 2017, compared with .28 percent at June 30, 2016 and .23 percent at March 31, 2017.

"Our second quarter provision for loan losses reflects continued strong, steady credit quality and a low level of net charge-offs," Tallent commented.  "Our credit quality indicators remain favorable 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."

Second quarter fee revenue totaled $23.7 million, up $188,000 from a year ago and up $1.61 million from the first quarter.  The increase from the first quarter was mostly in mortgage fees, gains from sales of SBA loans and other fee revenue.  The increase from a year ago was mostly in mortgage fees.  Mortgage fees were up $363,000 from a year ago, and $387,000 from the first quarter.  In the second quarter we closed 888 loans totaling $204 million compared with 697 loans totaling $151 million in the first quarter and 853 loans totaling $182 million in the second quarter of 2016.  Gains from sales of SBA loans were down $175,000 from a year ago but were up $667,000 from the first quarter following a seasonal first quarter decline.  Other fee revenue was up $718,000 from the first quarter mostly due to higher customer derivative fees and higher earnings from bank-owned life insurance assets.

Operating expenses were $63.2 million for the second quarter, compared with $58.1 million for the second quarter of 2016 and $62.8 million for the first quarter.  Included in operating expenses are merger-related and executive retirement charges of $1.83 million in the second quarter, merger-related charges of $1.18 million in the second quarter of 2016, and merger-related and branch closure charges of $2.05 million in the first quarter of 2017.  Excluding these charges, second quarter operating expenses were $61.4 million compared with $56.9 million a year ago and $60.8 million for the first quarter.  The $627,000 increase from the first quarter, though partially offset by lower professional fees, was mostly due to an increase in salaries and employee benefit costs following annual staff compensation increases that went into effect on April 1.

The overall increase in other expenses resulted from higher travel-related costs, internet banking service provider charges, and higher lending support costs.  The decrease in professional fees was due to elevated costs in the first quarter to assist with model development for United's stress testing project.  The increase in operating expenses from a year ago reflects additional expense following the acquisition of Tidelands Bank on July 1, 2016.

Income tax expense for the second quarter totaled $16.5 million compared with $15.4 million a year ago and $18.5 million in the first quarter. The first quarter was elevated due to a $3.4 million non-cash charge to release income taxes on hedge instruments that were held in other comprehensive income during the time in which United had a full valuation allowance on our deferred tax asset.

Tallent concluded, "Our bankers continue to do what they do best and that is take care of their customers by delivering the highest level of courteous service.  Their passion and commitment drive our performance and are reflected in our second quarter financial results.  I look forward to the opportunities that lie ahead and am excited about completing the acquisitions of Horry County State Bank and Four Oaks Bank & Trust Company.  These two exceptional banks are outstanding strategic partners in key growth markets and share our passion for banking and our commitment to customer service.  I look forward to welcoming them aboard and for 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, July 26, 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 47369140.  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 $10.8 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the southeast region's largest full-service banks, operating 134 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. In 2014, 2015 and 2016, J.D. Power 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              
               
           Second  
   2017   2016Quarter  
  Second   First   Fourth   Third   Second  2017-2016  
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter  Change  
INCOME SUMMARY               
Interest revenue$93,166  $90,958  $87,778  $85,439  $81,082       
Interest expense 8,018   7,404   6,853   6,450   6,164      
Net interest revenue 85,148   83,554   80,925    78,989   74,918  14 %  
Provision for credit losses 800   800    -   (300)  (300)     
Fee revenue 23,685   22,074   25,233   26,361    23,497  1    
Total revenue 108,033   104,828   106,158   105,650   98,715  9    
Expenses 63,229   62,826   61,321   64,023   58,060  9     
Income before income tax expense 44,804   42,002   44,837   41,627   40,655  10    
Income tax expense 16,537   18,478   17,616   15,753   15,389  7    
Net income 28,267   23,524   27,221   25,874   25,266  12    
Preferred dividends -   -   -   -   -      
Net income available to common shareholders$   28,267   $   23,524   $   27,221   $   25,874   $   25,266   12    
Merger-related and other charges 1,830   2,054   1,141   3,152   1,176      
Income tax benefit of merger-related and other charges (675)  (758)  (432)  (1,193)  (445)     
Impairment of deferred tax asset on canceled non-qualified stock options -   -   976   -    -      
Release of disproportionate tax effects lodged in OCI -   3,400   -   -   -      
Net income available to common shareholders - operating (1)$   29,422   $   28,220   $   28,906   $   27,833   $    25,997   13    
               
PERFORMANCE MEASURES              
Per common share:              
Diluted net income - GAAP .39  $  .33  $  .38  $  .36   $  .35  11    
Diluted net income - operating  (1) .41   .39   .40   .39   .36  14    
Cash dividends declared .09   .09   .08   .08   .07      
Book value 15.83   15.40   15.06   15.12   14.80  7    
Tangible book value (3) 13.74   13.30   12.95   13.00   12.84  7    
               
Key performance ratios:              
Return on common equity - GAAP (2)(4) 9.98 % 8.54 % 9.89 % 9.61 % 9.54 %   
Return on common equity - operating (1)(2)(4)  10.39   10.25   10.51   10.34   9.81      
Return on tangible common equity - operating (1)(2)(3)(4) 12.19   12.10    12.47   12.45   11.56      
Return on assets - GAAP (4) 1.06   .89   1.03   1.00   1.04      
Return on assets - operating (1)(4) 1.10   1.07   1.10    1.08   1.07      
Dividend payout ratio - GAAP 23.08   27.27   21.05   22.22   20.00      
Dividend payout ratio - operating (1) 21.95   23.08   20.00   20.51   19.44      
Net interest margin (fully taxable equivalent) (4) 3.47   3.45   3.34   3.34   3.35      
Efficiency ratio - GAAP 57.89   59.29    57.65   60.78   59.02      
Efficiency ratio - operating  (1) 56.21   57.35   56.58   57.79   57.82      
Average equity to average assets 10.49   10.24   10.35   10.38   10.72      
Average tangible equity to average assets (3) 9.23    8.96   9.04   8.98   9.43      
Average tangible common equity to average assets (3) 9.23   8.96   9.04    8.98   9.43      
Tangible common equity to risk-weighted assets (3)(5) 12.44   12.07   11.84   12.22   12.87      
               
ASSET QUALITY              
Nonperforming loans$23,095  $19,812  $21,539  $21,572  $21,348  8    
Foreclosed properties 2,739   5,060   7,949   9,187   6,176  (56)   
Total nonperforming assets (NPAs) 25,834   24,872   29,488   30,759   27,524  (6)   
Allowance for loan losses 59,500   60,543   61,422   62,961   64,253  (7)   
Net charge-offs 1,623   1,679   1,539   1,359   1,730  (6)   
Allowance for loan losses to loans .85 % .87 % .89 % .94 % 1.02 %    
Net charge-offs to average loans (4) .09   .10   .09   .08   .11      
NPAs to loans and foreclosed properties .37   .36   .43   .46   .44      
NPAs to total assets .24   .23   .28    .30   .28      
               
AVERAGE BALANCES ($ in millions)              
Loans$6,980  $6,904  $6,814  $6,675  $6,151  13    
Investment securities 2,775   2,822   2,690   2,610   2,747  1    
Earning assets 9,899   9,872   9,665   9,443   9,037  10    
Total assets 10,704   10,677   10,484   10,281   9,809  9    
Deposits 8,659   8,592   8,552   8,307   7,897  10    
Shareholders' equity 1,123   1,093   1,085   1,067   1,051  7    
Common shares - basic (thousands) 71,810   71,700   71,641   71,556   72,202  (1)   
Common shares - diluted (thousands) 71,820   71,708   71,648   71,561   72,207  (1)   
               
AT PERIOD END ($ in millions)              
Loans$7,041  $6,965  $6,921  $6,725  $6,287  12    
Investment securities 2,787   2,767   2,762   2,560   2,677  4    
Total assets 10,837   10,732   10,709   10,298   9,928  9    
Deposits 8,736   8,752   8,638   8,442   7,857  11    
Shareholders' equity 1,133   1,102    1,076   1,079   1,060  7    
Common shares outstanding (thousands) 70,981   70,973   70,899   70,861   71,122  -    
               
(1)  Excludes merger-related and other charges, 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)  Second quarter 2017 ratio is preliminary. 
               

 

UNITED COMMUNITY BANKS, INC.       
Financial Highlights       
Selected Financial Information       
        
 For the Six   
 Months Ended YTD 
 June 30, 2017-2016 
(in thousands, except per share data) 2017   2016   Change 
INCOME SUMMARY       
Interest revenue$184,124  $161,803      
Interest expense 15,422   11,933     
Net interest revenue 168,702   149,870  13 % 
Provision for credit losses 1,600   (500)    
Fee revenue 45,759   42,103  9   
Total revenue 212,861   192,473  11   
Expenses 126,055   115,945  9   
Income before income tax expense 86,806   76,528  13   
Income tax expense 35,015   28,967  21   
Net income 51,791    47,561  9   
Preferred dividends  -   21     
Net income available to common shareholders$   51,791   $   47,540     9    
Merger-related and other charges 3,884   3,829     
Income tax benefit of merger-related and other charges  (1,433)  (1,449)    
Impairment of deferred tax asset on canceled
  non-qualified stock options
 -   -     
Release of disproportionate tax effects lodged in OCI   3,400     -      
Net income available to common
  shareholders - operating (1)
$   57,642   $   49,920     15    
        
PERFORMANCE MEASURES       
Per common share:       
Diluted net income - GAAP$.72  $.66  9   
Diluted net income - operating  (1) .80   .69  16   
Cash dividends declared .18   .14     
Book value  15.83   14.80  7   
Tangible book value (3) 13.74   12.84  7   
             
Key performance ratios:           
Return on common equity - GAAP (2)(4) 9.27 % 9.06 %  
Return on common equity - operating (1)(2)(4) 10.32   9.51     
Return on tangible common equity - operating (1)(2)(3)(4) 12.15   11.24     
Return on assets - GAAP (4) .98   .98     
Return on assets - operating (1)(4) 1.09   1.03      
Dividend payout ratio - GAAP 25.00    21.21     
Dividend payout ratio - operating (1) 22.50   20.29     
Net interest margin (fully taxable equivalent) (4) 3.46   3.38     
Efficiency ratio - GAAP 58.58   60.44     
Efficiency ratio - operating  (1) 56.77   58.45     
Average equity to average assets 10.36   10.72      
Average tangible equity to average assets (3) 9.09   9.42     
Average tangible common equity to average assets (3) 9.09   9.38     
Tangible common equity to risk-weighted assets (3)(5) 12.44   12.87     
         
ASSET QUALITY       
Nonperforming loans$23,095  $21,348  8   
Foreclosed properties 2,739   6,176  (56)  
Total nonperforming assets (NPAs) 25,834   27,524  (6)  
Allowance for loan losses 59,500    64,253  (7)  
Net charge-offs 3,302   3,868  (15)  
Allowance for loan losses to loans .85 % 1.02 %   
Net charge-offs to average loans (4) .10   .13     
NPAs to loans and foreclosed properties  .37   .44     
NPAs to total assets .24    .28     
        
AVERAGE BALANCES ($ in millions)       
Loans$6,942  $6,077  14   
Investment securities 2,798   2,733  2   
Earning assets 9,885   8,956  10   
Total assets 10,691   9,721  10   
Deposits 8,626   7,922  9   
Shareholders' equity 1,108   1,042  6    
Common shares - basic (thousands) 71,798   72,187  (1)  
Common shares - diluted (thousands) 71,809   72,191  (1)  
        
AT PERIOD END ($ in millions)       
Loans$  7,041  $  6,287    12   
Investment securities   2,787     2,677    4   
Total assets   10,837     9,928    9   
Deposits   8,736     7,857    11   
Shareholders' equity   1,133     1,060    7   
Common shares outstanding (thousands)   70,981     71,122    -    
        
(1)  Excludes merger-related and other charges, 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)  Second quarter 2017 ratio is preliminary. 
         

 

UNITED COMMUNITY BANKS, INC.           
Non-GAAP Performance Measures Reconciliation          
Selected Financial Information          
           
           
  2017   2016
  Second   First   Fourth   Third    Second  
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter 
           
Expense reconciliation          
Expenses (GAAP)$  63,229  $  62,826  $  61,321  $  64,023  $  58,060  
Merger-related and other charges   (1,830)     (2,054)    (1,141)    (3,152)    (1,176) 
Expenses - operating$  61,399  $  60,772  $  60,180  $  60,871  $  56,884  
           
Net income reconciliation          
Net income (GAAP)$  28,267  $  23,524  $  27,221  $  25,874  $  25,266  
Merger-related and other charges   1,830     2,054     1,141     3,152     1,176  
Income tax benefit of merger-related and other charges   (675)    (758)    (432)    (1,193)    (445) 
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 $  29,422  $  28,220  $  28,906  $  27,833  $  25,997  
            
Net income available to common shareholders reconciliation          
Net income available to common shareholders (GAAP)$  28,267  $  23,524  $  27,221  $  25,874  $  25,266  
Merger-related and other charges   1,830     2,054     1,141     3,152     1,176  
Income tax benefit of merger-related and other charges   (675)    (758)    (432)    (1,193)    (445) 
Impairment of deferred tax asset on canceled non-qualified stock options    -      -      976     -      -   
Release of disproportionate tax effects lodged in OCI   -      3,400     -      -      -   
Net income available to common shareholders - operating$  29,422  $  28,220  $  28,906  $  27,833  $  25,997  
           
Diluted income per common share reconciliation          
Diluted income per common share (GAAP)$.39  $.33  $.38  $.36  $.35  
Merger-related and other charges .02   .01   .01   .03   .01  
Impairment of deferred tax asset on canceled non-qualified stock options -   -   .01   -   -  
Release of disproportionate tax effects lodged in OCI -   .05   -   -   -  
Diluted income per common share - operating$.41  $.39  $.40  $.39  $.36  
            
Book value per common share reconciliation          
Book value per common share (GAAP)$  15.83  $  15.40  $  15.06  $  15.12  $  14.80  
Effect of goodwill and other intangibles   (2.09)    (2.10)    (2.11)    (2.12)    (1.96) 
Tangible book value per common share$  13.74  $  13.30  $  12.95  $  13.00  $  12.84  
           
Return on tangible common equity reconciliation          
Return on common equity (GAAP)   9.98 %   8.54 %   9.89 %   9.61 %   9.54 %
Merger-related and other charges .41   .47   .26   .73    .27  
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   10.39     10.25     10.51     10.34     9.81  
Effect of goodwill and other intangibles   1.80     1.85     1.96     2.11     1.75  
Return on tangible common equity - operating   12.19 %   12.10 %   12.47 %   12.45 %   11.56 %
            
Return on assets reconciliation          
Return on assets (GAAP)   1.06 % .89 %   1.03 %   1.00 %   1.04  %
Merger-related and other charges .04   .05   .03   .08   .03  
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 %   1.07 %   1.10 %   1.08 %   1.07 %
           
Dividend payout ratio reconciliation          
Dividend payout ratio (GAAP)   23.08 %   27.27 %   21.05 %   22.22 %   20.00 %
Merger-related and other charges   (1.13)  (.98)    (.54)    (1.71)   (.56) 
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   21.95 %   23.08 %   20.00 %   20.51 %   19.44 %
           
Efficiency ratio reconciliation          
Efficiency ratio (GAAP)   57.89 %   59.29 %   57.65 %   60.78 %   59.02 %
Merger-related and other charges   (1.68)    (1.94)    (1.07)    (2.99)    (1.20) 
Efficiency ratio - operating   56.21 %   57.35 %   56.58 %   57.79 %   57.82 %
           
Average equity to assets reconciliation          
Equity to assets (GAAP)   10.49 %   10.24 %   10.35 %   10.38 %   10.72 %
Effect of goodwill and other intangibles   (1.26)    (1.28)    (1.31)    (1.40)    (1.29) 
Tangible equity to assets   9.23     8.96     9.04     8.98     9.43  
Effect of preferred equity   -      -      -      -      -   
Tangible common equity to assets   9.23 %   8.96 %   9.04 %   8.98 %   9.43 %
           
Tangible common equity to risk-weighted assets reconciliation (1)          
Tier 1 capital ratio (Regulatory)   11.92 %   11.46 %   11.23 %   11.04 %   11.44 %
Effect of other comprehensive income (.15)  (.24)  (.34)    -     (.06) 
Effect of deferred tax limitation .94     1.13     1.26     1.50     1.63  
Effect of trust preferred (.25)  (.25)  (.25)  (.26)   (.08) 
Effect of preferred equity   -      -      -      -      -   
Basel III intangibles transition adjustment (.02)   (.03)   (.06)  (.06)   (.06) 
Basel III disallowed investments   -      -      -      -      -   
Tangible common equity to risk-weighted assets   12.44 %   12.07 %   11.84 %   12.22 %   12.87 %
           
(1)  Second quarter 2017 ratios are preliminary.          
            

 

UNITED COMMUNITY BANKS, INC.     
Non-GAAP Performance Measures Reconciliation     
Selected Financial Information     
      
      
  For the Six Months Ended
June 30, 
 
  
(in thousands, except per share data) 2017   2016    
      
Expense reconciliation      
Expenses (GAAP)$  126,055  $  115,945   
Merger-related and other charges   (3,884)    (3,829)  
  Expenses - operating$  122,171  $  112,116   
      
Net income reconciliation     
Net income (GAAP)$  51,791  $  47,561   
Merger-related and other charges   3,884     3,829   
Income tax benefit of merger-related and other charges   (1,433)    (1,449)  
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI   3,400      -    
  Net income - operating$  57,642  $  49,941   
       
Net income available to common shareholders reconciliation     
Net income available to common shareholders (GAAP)$  51,791  $  47,540   
Merger-related and other charges   3,884     3,829   
Income tax benefit of merger-related and other charges   (1,433)    (1,449)  
Impairment of deferred tax asset on canceled non-qualified stock options    -      -    
Release of disproportionate tax effects lodged in OCI   3,400     -    
  Net income available to common shareholders - operating$  57,642  $  49,920   
      
Diluted income per common share reconciliation     
Diluted income per common share (GAAP)$.72  $.66   
Merger-related and other charges .03   .03   
Impairment of deferred tax asset on canceled non-qualified stock options -   -   
Release of disproportionate tax effects lodged in OCI .05   -   
  Diluted income per common share - operating$.80  $.69   
      
Book value per common share reconciliation     
Book value per common share (GAAP)$  15.83  $  14.80   
Effect of goodwill and other intangibles   (2.09)    (1.96)  
  Tangible book value per common share$  13.74  $  12.84   
      
Return on tangible common equity reconciliation     
Return on common equity (GAAP)   9.27 %   9.06 % 
Merger-related and other charges .44   .45   
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI .61     -    
Return on common equity - operating   10.32     9.51   
Effect of goodwill and other intangibles   1.83     1.73   
  Return on tangible common equity - operating   12.15 %   11.24 % 
      
Return on assets reconciliation     
Return on assets (GAAP)  .98 %  .98 % 
Merger-related and other charges .05   .05    
Impairment of deferred tax asset on canceled non-qualified stock options   -      -    
Release of disproportionate tax effects lodged in OCI .06     -    
  Return on assets - operating   1.09 %   1.03 % 
      
Dividend payout ratio reconciliation      
Dividend payout ratio (GAAP)   25.00 %   21.21 % 
Merger-related and other charges   (1.00)  (.92)  
Impairment of deferred tax asset on canceled non-qualified stock options   -      -     
Release of disproportionate tax effects lodged in OCI   (1.50)    -     
  Dividend payout ratio - operating   22.50 %   20.29 % 
      
Efficiency ratio reconciliation     
Efficiency ratio (GAAP)   58.58 %   60.44 % 
Merger-related and other charges   (1.81)    (1.99)  
  Efficiency ratio - operating   56.77 %   58.45 % 
      
Average equity to assets reconciliation     
Equity to assets (GAAP) 10.36 % 10.72 % 
Effect of goodwill and other intangibles   (1.27)     (1.30)  
  Tangible equity to assets   9.09     9.42   
Effect of preferred equity   -    (.04)  
  Tangible common equity to assets   9.09 %   9.38 % 
      
Tangible common equity to risk-weighted assets reconciliation (1)     
Tier 1 capital ratio (Regulatory)   11.92 %   11.44 % 
Effect of other comprehensive income  (.15 )  (.06)  
Effect of deferred tax limitation .94     1.63   
Effect of trust preferred (.25)    (.08)  
Effect of preferred equity   -      -    
Basel III intangibles transition adjustment (.02)  (.06)  
Basel III disallowed investments   -      -    
  Tangible common equity to risk-weighted assets   12.44 %   12.87 % 
      
(1)  Second quarter 2017 ratios are preliminary.     
      

 

UNITED COMMUNITY BANKS, INC.       
Financial Highlights           
Loan Portfolio Composition at Period-End       
            
            
   2017  2016
   Second   First   Fourth   Third   Second  
(in millions) Quarter Quarter Quarter Quarter Quarter 
LOANS BY CATEGORY           
Owner occupied commercial RE $  1,723 $  1,633 $  1,650 $  1,587 $  1,527 
Income producing commercial RE    1,342    1,297    1,282    1,277    1,101 
Commercial & industrial    1,088    1,080    1,070    994    925 
Commercial construction    587    667    634    567    565 
  Total commercial    4,740    4,677    4,636    4,425    4,118 
Residential mortgage    881    860    857    814    784 
Home equity lines of credit    665    659    655    693    616 
Residential construction    193    197    190    200    170 
Consumer installment    562    572    583    593    599 
  Total loans $  7,041 $  6,965 $  6,921 $  6,725 $  6,287 
            
LOANS BY MARKET           
North Georgia $   1,065 $  1,076 $  1,097 $  1,110 $  1,097 
Atlanta MSA    1,445    1,408    1,399    1,332    1,314 
North Carolina    541    541    545    548    543 
Coastal Georgia    623    591    581    565    541 
Gainesville MSA    246    252    248    236    240 
East Tennessee    486    483    504    506    509 
South Carolina    1,260    1,243    1,233    1,199    862 
Commercial Banking Solutions    926    911    855    763    706 
Indirect auto    449    460    459    466    475 
  Total loans $  7,041 $  6,965 $  6,921 $  6,725 $  6,287 
            

 

UNITED COMMUNITY BANKS, INC.      
Financial Highlights           
Loan Portfolio Composition at Period-End      
            
           
   2017  2016 Linked
Quarter
Change
 Year over
Year
Change
   Second    First   Second   
(in millions) Quarter Quarter Quarter  
LOANS BY CATEGORY           
Owner occupied commercial RE $  1,723 $  1,633 $  1,527 $  90  $  196 
Income producing commercial RE    1,342    1,297    1,101    45     241 
Commercial & industrial    1,088    1,080    925    8     163 
Commercial construction    587    667    565    (80)    22 
  Total commercial    4,740    4,677    4,118    63     622 
Residential mortgage    881    860    784    21     97 
Home equity lines of credit    665    659     616    6     49 
Residential construction    193    197    170     (4)    23 
Consumer installment    562     572    599    (10)    (37)
  Total loans $  7,041 $  6,965 $  6,287    76     754 
           
LOANS BY MARKET          
North Georgia $  1,065 $  1,076 $  1,097    (11)    (32)
Atlanta MSA    1,445    1,408    1,314    37     131 
North Carolina    541    541    543    -      (2)
Coastal Georgia     623    591    541    32     82 
Gainesville MSA    246    252    240    (6)    6 
East Tennessee    486    483    509    3     (23)
South Carolina     1,260    1,243    862    17     398 
Commercial Banking Solutions    926    911    706    15     220 
Indirect auto    449    460    475    (11)    (26)
  Total loans $  7,041 $  6,965 $  6,287    76     754 
           

 

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 
Capitalized costs    -      -      -  
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     -  
Capitalized costs    -      -      -  
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         
          
          
  Fourth Quarter 2016
   Nonperforming   Foreclosed   Total 
(in thousands)  Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY       
Owner occupied CRE $  7,373  $  3,145  $  10,518 
Income producing CRE    1,324     36     1,360 
Commercial & industrial    966     -      966 
Commercial construction    1,538     2,977     4,515 
  Total commercial    11,201     6,158     17,359 
Residential mortgage    6,368     1,260     7,628 
Home equity lines of credit    1,831     531     2,362 
Residential construction    776     -      776 
Consumer installment    1,363     -      1,363 
  Total NPAs $  21,539  $  7,949  $  29,488 
          
NONPERFORMING ASSETS BY MARKET        
North Georgia $  5,278  $  856  $  6,134 
Atlanta MSA    1,259     716     1,975 
North Carolina    4,750     632     5,382 
Coastal Georgia    1,778     -      1,778 
Gainesville MSA    279     -      279 
East Tennessee    2,354     675     3,029 
South Carolina    2,494      5,070     7,564 
Commercial Banking Solutions    2,072     -      2,072 
Indirect auto    1,275     -      1,275 
  Total NPAs $  21,539  $  7,949  $  29,488 
          
NONPERFORMING ASSETS ACTIVITY       
Beginning Balance $  21,572  $  9,187  $  30,759 
Acquisitions    -      -      -  
Loans placed on non-accrual    6,346     -      6,346 
Payments received    (3,832)    -      (3,832)
Loan charge-offs    (1,293)    -      (1,293)
Foreclosures    (1,254)    1,530     276 
Capitalized costs    -      26     26 
Property sales    -      (2,737)    (2,737)
Write downs    -      (254)    (254)
Net gains (losses) on sales    -      197      197 
  Ending Balance $  21,539   $  7,949  $  29,488 
          

 

UNITED COMMUNITY BANKS, INC.                 
Financial Highlights                  
Credit Quality                  
                   
                   
  Second Quarter 2017 First Quarter 2017 Fourth Quarter 2016
      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 $  37    .01 %  $  (212)   (.05) %  $  1    -  % 
Income producing CRE    184    .06     870    .28     527    .16 
Commercial & industrial    354    .13     (152)   (.06)     (201)   (.08) 
Commercial construction    341    .22     (370)   (.23)     241    .16 
  Total commercial    916    .08      136    .01     568    .05 
Residential mortgage    26    .01     530    .25     322    .15 
Home equity lines of credit    253    .15     422    .26     151    .09 
Residential construction    (53)   (.11)     (9)   (.02)     (16)   (.03) 
Consumer installment    481    .34     600    .42     514    .35  
  Total $  1,623    .09  $  1,679    .10  $  1,539    .09 
                   
NET CHARGE-OFFS BY MARKET                  
North Georgia $  681    .26 %  $  15    .01 %  $  575    .21 % 
Atlanta MSA    (10)   -      (46)   (.01)     12    -  
North Carolina     131    .10     601    .45     714    .52 
Coastal Georgia    120    .08     (223)   (.15)     118    .08 
Gainesville MSA    (54)   (.09)     358    .58     (32)   (.05) 
East Tennessee    27    .02     55    .05     (139)   (.11) 
South Carolina    526    .17      425    .14     (2)   -  
Commercial Banking Solutions    (17)   (.01)     195    .09     (21)   (.01)  
Indirect auto    219    .19     299    .27     314     .27 
  Total $  1,623    .09  $  1,679    .10  $  1,539    .09 
                   
(1)  Annualized. 

 

UNITED COMMUNITY BANKS, INC.         
Consolidated Statement of Income (Unaudited)         
           
  Three Months Ended Six Months Ended 
  June 30, June 30, 
(in thousands, except per share data)  2017  2016   2017  2016  
          
Interest revenue:         
Loans, including fees $  74,825 $  63,472  $  147,552 $  127,448  
Investment securities, including tax exempt of $357, $149, $636, and $315    17,778    16,833     35,490    32,621  
Deposits in banks and short-term investments    563    777     1,082    1,734  
Total interest revenue    93,166    81,082     184,124    161,803  
          
Interest expense:         
Deposits:         
NOW    635    444     1,232    929  
Money market    1,559    1,206     2,985    2,314  
Savings    28    30     55    59  
Time    1,379    743     2,387    1,385  
Total deposit interest expense    3,601    2,423     6,659    4,687  
Short-term borrowings    101    93     141    180  
Federal Home Loan Bank advances    1,464    983     2,894    1,716  
Long-term debt    2,852    2,665     5,728    5,350  
Total interest expense    8,018    6,164     15,422    11,933  
Net interest revenue    85,148    74,918     168,702    149,870  
(Release of) provision for credit losses    800    (300)    1,600    (500) 
Net interest revenue after provision for credit losses    84,348    75,218     167,102    150,370  
          
Fee revenue:         
Service charges and fees    10,701    10,515     21,305    20,641  
Mortgage loan and other related fees    4,811    4,448     9,235    7,737  
Brokerage fees    1,146    1,117     2,556    2,170  
Gains from sales of government guaranteed loans    2,626    2,801     4,585    4,038  
Securities gains, net    4    282     2    661  
Other     4,397    4,334     8,076    6,856  
Total fee revenue    23,685    23,497      45,759    42,103  
Total revenue    108,033    98,715     212,861    192,473  
          
Operating expenses:         
Salaries and employee benefits    37,338    33,572     74,029    66,634  
Communications and equipment    4,978    4,393     9,896    8,683  
Occupancy    4,908    4,538     9,857    9,261  
Advertising and public relations    1,260    1,323     2,321    2,187  
Postage, printing and supplies    1,346    1,298     2,716    2,578  
Professional fees    2,371    3,189     5,415    5,889  
FDIC assessments and other regulatory charges    1,348    1,517     2,631    3,041  
Amortization of intangibles    900    987      1,873    1,997  
Merger-related and other charges    1,830    1,176     3,884    3,829  
Other    6,950    6,067     13,433    11,846  
Total operating expenses    63,229    58,060     126,055    115,945  
Net income before income taxes    44,804    40,655     86,806    76,528  
Income tax expense    16,537    15,389     35,015    28,967  
Net income    28,267    25,266     51,791    47,561  
Preferred stock dividends and discount accretion    -    -       -     21  
Net income available to common shareholders $  28,267 $  25,266  $  51,791 $  47,540  
           
Earnings per common share:         
  Basic  $  .39  $  .35   $  .72  $  .66  
  Diluted   .39   .35    .72  .66  
Weighted average common shares outstanding:         
  Basic    71,810    72,202     71,798    72,187  
  Diluted    71,820    72,207     71,809    72,191  
          

 

UNITED COMMUNITY BANKS, INC.     
Consolidated Balance Sheet (Unaudited)     
      
  June 30, December 31, 
(in thousands, except share and per share data)  2017   2016  
      
ASSETS     
Cash and due from banks  $  103,616  $  99,489  
Interest-bearing deposits in banks    129,570     117,859  
Cash and cash equivalents    233,186     217,348  
Securities available for sale    2,474,592     2,432,438  
Securities held to maturity (fair value $316,583 and $333,170)     312,002     329,843  
Mortgage loans held for sale (includes $24,109 and $27,891 at fair value)    25,711     29,878  
Loans, net of unearned income    7,040,932     6,920,636  
Less allowance for loan losses    (59,500)    (61,422) 
Loans, net     6,981,432     6,859,214  
Premises and equipment, net    189,614     189,938  
Bank owned life insurance    155,026     143,543  
Accrued interest receivable    26,938     28,018  
Net deferred tax asset    119,594     154,336  
Derivative financial instruments    21,640     23,688  
Goodwill and other intangible assets    154,350      156,222  
Other assets    143,325     144,189  
  Total assets $  10,837,410   $  10,708,655  
LIABILITIES AND SHAREHOLDERS' EQUITY     
Liabilities:     
Deposits:     
Demand $  2,818,668  $  2,637,004  
NOW     1,874,850     1,989,763  
Money market    1,808,736     1,846,440  
Savings    581,706     549,713  
Time    1,273,112      1,287,142  
Brokered    378,663     327,496  
Total deposits    8,735,735     8,637,558  
Short-term borrowings    -     5,000  
Federal Home Loan Bank advances    669,065     709,209  
Long-term debt    175,363     175,078  
Derivative financial instruments    24,260     27,648  
Accrued expenses and other liabilities    100,346     78,427  
  Total liabilities    9,704,769     9,632,920  
Shareholders' equity:     
Common stock, $1 par value; 150,000,000 shares authorized;     
70,980,916 and 70,899,114 shares issued and outstanding    70,981     70,899  
Common stock issuable; 550,449 and 519,874 shares    8,062     7,327  
Capital surplus    1,277,822     1,275,849  
Accumulated deficit    (212,607)    (251,857) 
Accumulated other comprehensive loss    (11,617)    (26,483) 
  Total shareholders' equity    1,132,641     1,075,735  
  Total liabilities and shareholders' equity $  10,837,410  $  10,708,655  
      

 

UNITED COMMUNITY BANKS, INC.            
Average Consolidated Balance Sheets and Net Interest Analysis         
For the Three Months Ended June 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)$  6,979,980  $  74,8114.30% $  6,150,654  $  63,4854.15% 
Taxable securities (3)   2,719,390     17,4212.56     2,720,061     16,6842.45  
Tax-exempt securities (FTE) (1)(3)   55,992     5844.17     27,434     2443.56   
Federal funds sold and other interest-earning assets   143,143     7432.08     138,622     9122.63  
             
Total interest-earning assets (FTE)   9,898,505     93,5593.79     9,036,771     81,3253.62  
Non-interest-earning assets:            
Allowance for loan losses    (61,163)        (66,104)     
Cash and due from banks   104,812         94,920      
Premises and equipment   192,906         182,609      
Other assets (3)   569,435         560,357      
Total assets$  10,704,495       $  9,808,553      
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW$  1,901,890     635.13  $  1,755,726     444.10  
Money market   2,064,143     1,559.30     1,866,913     1,206.26  
Savings   575,960     28.02     497,973      30.02  
Time   1,274,009     1,136.36     1,205,066     675.23  
Brokered time deposits   111,983     243.87     187,481     68.15  
Total interest-bearing deposits   5,927,985     3,601.24     5,513,159     2,423.18  
             
Federal funds purchased and other borrowings   37,317     1011.09     11,000     933.40  
Federal Home Loan Bank advances   594,815     1,464.99     589,246     983.67  
Long-term debt   175,281     2,8526.53     164,020     2,6656.53  
Total borrowed funds   807,413     4,4172.19     764,266     3,7411.97  
             
Total interest-bearing liabilities   6,735,398     8,018.48     6,277,425     6,164.39  
Non-interest-bearing liabilities:            
Non-interest-bearing deposits   2,731,217         2,383,894      
Other liabilities   114,873         96,067      
Total liabilities   9,581,488         8,757,386      
Shareholders' equity   1,123,007         1,051,167      
Total liabilities and shareholders' equity$  10,704,495      $  9,808,553      
             
Net interest revenue (FTE)  $  85,541     $  75,161   
Net interest-rate spread (FTE)   3.31%    3.23% 
             
Net interest margin (FTE) (4)   3.47%    3.35% 
             
(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 $6.58 million in 2017 and $12.3 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 Six Months Ended June 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)$  6,942,130  $  147,5524.29% $  6,077,111  $  127,529 4.22% 
Taxable securities (3)   2,749,339      34,8542.54     2,704,309     32,306 2.39  
Tax-exempt securities (FTE) (1)(3)   49,125     1,0414.24     28,590     516 3.61   
Federal funds sold and other interest-earning assets   144,577     1,4071.95     146,192     1,965 2.69  
             
Total interest-earning assets (FTE)   9,885,171      184,8543.76     8,956,202     162,316 3.64  
Non-interest-earning assets:             
Allowance for loan losses   (61,414)        (67,289)     
Cash and due from banks   102,048         90,278      
Premises and equipment   191,509         181,350      
Other assets (3)   573,281         560,813      
Total assets$  10,690,595      $  9,721,354      
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW$  1,930,624     1,232.13  $  1,821,100      929 .10  
Money market   2,064,792     2,985.29     1,853,749     2,314 .25  
Savings   568,339     55.02     489,106     59 .02  
Time   1,269,005     1,951.31     1,232,378     1,492  .24  
Brokered time deposits   105,199     436.84     210,347     (107)(.10)  
Total interest-bearing deposits   5,937,959     6,659.23     5,606,680     4,687 .17  
             
Federal funds purchased and other borrowings   28,225     1411.01     22,953     180 1.58   
Federal Home Loan Bank advances   637,728     2,894.92     467,708     1,716 .74  
Long-term debt   175,212     5,7286.59      164,720     5,350 6.53  
Total borrowed funds   841,165     8,7632.10      655,381     7,246 2.22  
             
Total interest-bearing liabilities   6,779,124     15,422.46      6,262,061     11,933 .38  
Non-interest-bearing liabilities:            
Non-interest-bearing deposits   2,687,665         2,315,468      
Other liabilities   115,808         101,694      
Total liabilities    9,582,597         8,679,223      
Shareholders' equity   1,107,998         1,042,131      
Total liabilities and shareholders' equity $  10,690,595      $  9,721,354      
             
Net interest revenue (FTE)  $  169,432     $  150,383    
Net interest-rate spread (FTE)   3.30%    3.26%  
             
Net interest margin (FTE) (4)   3.46%    3.38% 
             
(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 $638 thousand in 2017 and $7.28 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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