United Community Banks, Inc.
UNITED COMMUNITY BANKS INC (Form: 8-K, Received: 04/26/2017 09:03:23)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

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

 

Date of Report (Date of earliest event reported):
April 26, 2017

 

UNITED COMMUNITY BANKS, INC.
(Exact name of registrant as specified in its charter)

 

Georgia No. 001-35095 No. 58-180-7304
(State or other jurisdiction of (Commission File Number) (IRS Employer
 incorporation)   Identification No.)

 

125 Highway 515 East
Blairsville, Georgia 30512
(Address of principal executive offices)

 

Registrant’s telephone number, including area code:
(706) 781-2265

 

Not applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§240.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

  

Item 2.02 Results of Operations and Financial Condition.

 

On April 26, 2017, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended March 31, 2017 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. In connection with issuing the News Release, on April 26, 2017 at 11:00 a.m. ET, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the First Quarter 2017 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The presentation of the Registrant’s financial results includes 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 available to common shareholders,” “operating earnings per share,” “operating diluted earnings per share,” “tangible book value per share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating efficiency ratio,” “operating expenses,” “tangible common equity to risk-weighted assets,” and “average tangible equity to average assets.” In addition, management has included the presentation of “pre-tax, pre-credit earnings”, which excludes the provision for credit losses, income taxes and merger-related and other charges. Management has included these non-GAAP measures because it believes they may provide useful supplemental information for evaluating the Registrant’s underlying performance trends. Further, management uses these measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance.

 

Operating performance 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 in the News Release and the Investor Presentation attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

 

 

 

  

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit    
No.   Description
     
99.1   News Release, dated April 26, 2017
     
99.2   Investor Presentation, First Quarter 2017

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  UNITED COMMUNITY BANKS, INC.
     
  By: / s / Jefferson L. Harralson
    Jefferson L. Harralson
    Executive Vice President and
    Chief Financial Officer

 

Date: April 26, 2017

 

 

 

Exhibit 99.1

 


 

For Immediate Release

 

For more information:

Jefferson Harralson

Chief Financial Officer

(864) 240-6208

Jefferson_Harralson@ucbi.com

 

UNITED COMMUNITY BANKS, INC.

ANNOUNCES FIRST QUARTER EARNINGS

Diluted earnings per share up 6 percent, to 33 cents, from first quarter 2016

Excluding merger-related and other non-operating charges,

diluted operating EPS up 18 percent, to 39 cents 

 

    Net interest revenue of $83.6 million, up $8.6 million or 11 percent from year ago
    Net interest margin of 3.45 percent, up 11 basis points from fourth quarter
    Core transaction deposits up $189 million from the fourth quarter, or 13 percent annualized
    Return on assets of .89 percent, or 1.07 percent excluding merger-related and other charges
    Efficiency ratio of 59.3 percent, or 57.4 percent excluding merger-related and other charges

  

BLAIRSVILLE, GA – April 26, 2017 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced strong first quarter results with solid margin improvement, effective expense management and sound credit quality. Net income was $23.5 million, or 33 cents per diluted share, compared with $22.3 million, or 31 cents per diluted share, for the first quarter of 2016.

 

On an operating basis, net income rose to $28.2 million for the first quarter of 2017 compared with $23.9 million for the first quarter of 2016. First quarter 2017 operating net income excludes pre-tax merger-related charges of $1.17 million and pre-tax charges related to branch closures of $831,000, net of the income tax benefit associated with the charges of $758,000. Also excluded is a non-cash tax charge of $3.4 million related to the cancellation of interest rate swaps that were designated as cash flow hedges. The non-cash tax charge was previously included in other comprehensive income until the swaps matured or were canceled.

 
 

 

First quarter 2016 operating net income excludes $2.65 million in pre-tax merger-related charges, net of the associated income tax benefit of $1.00 million. On a per diluted share basis, operating net income was 39 cents for the first quarter of 2017 compared with 33 cents for the first quarter of 2016.

 

At March 31, 2017, preliminary regulatory capital ratios were as follows. Tier 1 Risk-Based of 11.5 percent; Total Risk-Based of 12.3 percent; Common Equity Tier 1 Risk-Based of 11.4 percent, and Tier 1 Leverage of 8.6 percent.

 

“We began 2017 with a solid first quarter,” said Jimmy Tallent, chairman and chief executive officer. “Excluding merger-related and other non-operating charges, operating net income per share was up 18 percent from a year ago to 39 cents, driven by strong loan and fee revenue growth and expense management. Also excluding these charges, we held our operating efficiency ratio to 57.4 percent, the second best in a decade and surpassed only by the fourth quarter of 2016. Including those charges, the efficiency ratio was 59.3 percent.

 

“While linked-quarter operating net income was down slightly, our margin expansion and disciplined expense management offset most of the seasonal declines in mortgage and SBA lending, as well as some seasonal decrease in loan growth,” Tallent said. “Our bankers made steady progress improving financial performance by growing core transaction deposits a healthy 13 percent in the first quarter, all while holding deposit pricing steady.

 

“First quarter loan production was $615 million,” Tallent added. “Linked-quarter average loan growth was $89.8 million, or 5 percent annualized, reflecting a seasonal decrease from recent quarters. End of period loans grew by $44.4 million. Our community banks originated $423 million in loans, while our specialized lending area produced $151 million.” Specialized lending encompasses commercial real estate, middle market, SBA, asset-based lending, senior living and builder finance.

 

 2
 

First quarter net interest revenue totaled $83.6 million, up $8.6 million from the first quarter of 2016 and up $2.6 million from the fourth quarter of 2016. The increases from both periods reflect net interest margin expansions of 4 basis points from a year ago and 11 basis points from the fourth quarter, driven by rising short-term interest rates. Loan growth and the acquisition of Tidelands Bank in July of 2016 were the primary drivers of the increase from a year ago.

 

The first quarter provision for credit losses was $800,000. This compares with a provision recovery of $200,000 in the first quarter of 2016 and no provision for the fourth quarter of 2016. First quarter net charge-offs totaled $1.7 million, compared with $2.1 million in the first quarter of 2016 and $1.5 million in the fourth quarter. 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 March 31, 2017, compared with .28 percent at both March 31, 2016 and December 31, 2016.

 

“Our first 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.”

 

Fourth quarter fee revenue totaled $22.1 million, up $3.47 million from a year ago and a decrease of $3.16 million from the fourth quarter. Mortgage fees were up $1.14 million from a year ago, and down $2.09 million from the fourth quarter. Gains from sales of SBA loans were up $722,000 from a year ago due to continued growth in SBA lending, and were down $1.07 million from the fourth quarter. Partially offsetting the seasonal linked-quarter decreases in mortgage and SBA revenue was a $499,000 increase in brokerage fees. Other fee revenue was down $386,000 from the fourth quarter, mostly reflecting a lower volume of customer derivative business.

 

Operating expenses were $62.8 million for the first quarter, compared with $57.9 million for the first quarter of 2016 and $61.3 million for the fourth quarter. Included in operating expenses are merger-related and branch closure charges of $2.05 million in the first quarter, and merger-related charges of $2.65 million in the first quarter of 2016 and $1.14 million in the fourth quarter of 2016. Excluding these charges, first quarter operating expenses were $60.8 million compared with $55.2 million a year ago and $60.2 million for the fourth quarter.

 3
 

The increase in operating expenses from the fourth quarter is primarily due to higher salaries and employee benefit costs, with most of the increase related to payroll taxes that start over at the beginning of each year. The increase from a year ago also reflects additional operating expenses following the acquisition of Tidelands Bank on July 1, 2016. United’s financial results begin including operating expenses of acquired companies on their respective acquisition dates.

 

Income tax expense for the first quarter totaled $18.5 million compared with $13.6 million a year ago and $17.6 million in the fourth quarter. Included in first quarter income tax expense was 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 its deferred tax asset. For accounting purposes, these disproportionate tax effects remained in other comprehensive income until the instruments that created them ceased to exist. In the first quarter of 2017, several related interest rate swaps matured while the balance of these hedge instruments were canceled thereby requiring a transfer from other comprehensive income to a non-cash tax expense charge. The charge had no effect on tangible book value, since there was no effect on total shareholders’ equity. Income tax expense in the fourth quarter of 2016 was elevated by a charge of $976,000 due to the impairment of a portion of the deferred tax asset as a result of cancelling nonqualified stock options.

 

Tallent concluded, “We are off to a good start toward another exceptional year for United Community Banks. Our bankers continue to execute our strategic plans and serve their customers with the enthusiasm, energy and passion that are the foundation of our success. I’m also excited about the Horry County State Bank acquisition that was announced last week and is expected to close in the third quarter. Not only is the bank in a market where we want to expand, it is also a solid cultural fit with the same emphasis on outstanding customer service for which United is known.”

 

 4
 

 

Conference Call

United will hold a conference call today, Wednesday, April 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 97149143. 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 registered bank holding company based in Blairsville, Georgia with $10.7 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 providing personalized community banking services to individuals, small businesses and middle-market companies. 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 included United among their list of the top 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.

 5
 

 

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 its 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.

 

# # #

 6
 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

 

                                  First  
    2017     2016     Quarter  
    First     Fourth     Third     Second     First     2017-2016  
(in thousands, except per share data)   Quarter     Quarter     Quarter     Quarter     Quarter     Change  
INCOME SUMMARY                                                
Interest revenue   $ 90,958     $ 87,778     $ 85,439     $ 81,082     $ 80,721          
Interest expense     7,404       6,853       6,450       6,164       5,769          
Net interest revenue     83,554       80,925       78,989       74,918       74,952       11 %
Provision for credit losses     800       -       (300 )     (300 )     (200 )        
Fee revenue     22,074       25,233       26,361       23,497       18,606       19  
Total revenue     104,828       106,158       105,650       98,715       93,758       12  
Expenses     62,826       61,321       64,023       58,060       57,885       9  
Income before income tax expense     42,002       44,837       41,627       40,655       35,873       17  
Income tax expense     18,478       17,616       15,753       15,389       13,578       36  
Net income     23,524       27,221       25,874       25,266       22,295       6  
Preferred dividends     -       -       -       -       21          
Net income available to common shareholders   $ 23,524     $ 27,221     $ 25,874     $ 25,266     $ 22,274       6  
Merger-related and other charges     2,054       1,141       3,152       1,176       2,653          
Income tax benefit of merger-related and other charges     (758 )     (432 )     (1,193 )     (445 )     (1,004 )        
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)   $ 28,220     $ 28,906     $ 27,833     $ 25,997     $ 23,923       18  
                                                 
PERFORMANCE MEASURES                                                
Per common share:                                                
Diluted net income - GAAP   $ .33     $ .38     $ .36     $ .35     $ .31       6  
Diluted net income - operating (1)     .39       .40       .39       .36       .33       18  
Cash dividends declared     .09       .08       .08       .07       .07          
Book value     15.40       15.06       15.12       14.80       14.35       7  
Tangible book value (3)     13.30       12.95       13.00       12.84       12.40       7  
                                                 
Key performance ratios:                                                
Return on common equity - GAAP (2)(4)     8.54 %     9.89 %     9.61 %     9.54 %     8.57 %        
Return on common equity - operating (1)(2)(4)     10.25       10.51       10.34       9.81       9.20          
Return on tangible common equity - operating (1)(2)(3)(4)     12.10       12.47       12.45       11.56       10.91          
Return on assets - GAAP (4)     .89       1.03       1.00       1.04       .93          
Return on assets - operating (1)(4)     1.07       1.10       1.08       1.07       1.00          
Dividend payout ratio - GAAP     27.27       21.05       22.22       20.00       22.58          
Dividend payout ratio - operating (1)     23.08       20.00       20.51       19.44       21.21          
Net interest margin (fully taxable equivalent) (4)     3.45       3.34       3.34       3.35       3.41          
Efficiency ratio - GAAP     59.29       57.65       60.78       59.02       61.94          
Efficiency ratio - operating (1)     57.35       56.58       57.79       57.82       59.10          
Average equity to average assets     10.24       10.35       10.38       10.72       10.72          
Average tangible equity to average assets (3)     8.96       9.04       8.98       9.43       9.41          
Average tangible common equity to average assets (3)     8.96       9.04       8.98       9.43       9.32          
Tangible common equity to risk-weighted assets (3)(5)     12.07       11.84       12.22       12.87       12.77          
                                                 
ASSET QUALITY                                                
Nonperforming loans   $ 19,812     $ 21,539     $ 21,572     $ 21,348     $ 22,419       (12 )
Foreclosed properties     5,060       7,949       9,187       6,176       5,163       (2 )
Total nonperforming assets (NPAs)     24,872       29,488       30,759       27,524       27,582       (10 )
Allowance for loan losses     60,543       61,422       62,961       64,253       66,310       (9 )
Net charge-offs     1,679       1,539       1,359       1,730       2,138       (21 )
Allowance for loan losses to loans     .87 %     .89 %     .94 %     1.02 %     1.09 %        
Net charge-offs to average loans (4)     .10       .09       .08       .11       .14          
NPAs to loans and foreclosed properties     .36       .43       .46       .44       .45          
NPAs to total assets     .23       .28       .30       .28       .28          
                                                 
AVERAGE BALANCES ($ in millions)                                                
Loans   $ 6,904     $ 6,814     $ 6,675     $ 6,151     $ 6,004       15  
Investment securities     2,822       2,690       2,610       2,747       2,718       4  
Earning assets     9,872       9,665       9,443       9,037       8,876       11  
Total assets     10,677       10,484       10,281       9,809       9,634       11  
Deposits     8,592       8,552       8,307       7,897       7,947       8  
Shareholders’ equity     1,093       1,085       1,067       1,051       1,033       6  
Common shares - basic (thousands)     71,700       71,641       71,556       72,202       72,162       (1 )
Common shares - diluted (thousands)     71,708       71,648       71,561       72,207       72,166       (1 )
                                                 
AT PERIOD END ($ in millions)                                                
Loans   $ 6,965     $ 6,921     $ 6,725     $ 6,287     $ 6,106       14  
Investment securities     2,767       2,762       2,560       2,677       2,757       -  
Total assets     10,732       10,709       10,298       9,928       9,781       10  
Deposits     8,752       8,638       8,442       7,857       7,960       10  
Shareholders’ equity     1,102       1,076       1,079       1,060       1,034       7  
Common shares outstanding (thousands)     70,973       70,899       70,861       71,122       71,544       (1 )

 

(1) Excludes merger-related 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 canceled 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) First quarter 2017 ratio is preliminary.

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information

 

    2017     2016  
    First     Fourth     Third     Second     First  
(in thousands, except per share data)   Quarter     Quarter     Quarter     Quarter     Quarter  
                     
Expense reconciliation                                        
Expenses (GAAP)   $ 62,826     $ 61,321     $ 64,023     $ 58,060     $ 57,885  
Merger-related and other charges     (2,054 )     (1,141 )     (3,152 )     (1,176 )     (2,653 )
Expenses - operating   $ 60,772     $ 60,180     $ 60,871     $ 56,884     $ 55,232  
                                         
Net income reconciliation                                        
Net income (GAAP)   $ 23,524     $ 27,221     $ 25,874     $ 25,266     $ 22,295  
Merger-related and other charges     2,054       1,141       3,152       1,176       2,653  
Income tax benefit of merger-related and other charges     (758 )     (432 )     (1,193 )     (445 )     (1,004 )
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   $ 28,220     $ 28,906     $ 27,833     $ 25,997     $ 23,944  
                                         
Net income available to common shareholders reconciliation                                        
Net income available to common shareholders (GAAP)   $ 23,524     $ 27,221     $ 25,874     $ 25,266     $ 22,274  
Merger-related and other charges     2,054       1,141       3,152       1,176       2,653  
Income tax benefit of merger-related and other charges     (758 )     (432 )     (1,193 )     (445 )     (1,004 )
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   $ 28,220     $ 28,906     $ 27,833     $ 25,997     $ 23,923  
                                         
Diluted income per common share reconciliation                                        
Diluted income per common share (GAAP)   $ .33     $ .38     $ .36     $ .35     $ .31  
Merger-related and other charges     .01       .01       .03       .01       .02  
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   $ .39     $ .40     $ .39     $ .36     $ .33  
                                         
Book value per common share reconciliation                                        
Book value per common share (GAAP)   $ 15.40     $ 15.06     $ 15.12     $ 14.80     $ 14.35  
Effect of goodwill and other intangibles     (2.10 )     (2.11 )     (2.12 )     (1.96 )     (1.95 )
Tangible book value per common share   $ 13.30     $ 12.95     $ 13.00     $ 12.84     $ 12.40  
                                         
Return on tangible common equity reconciliation                                        
Return on common equity (GAAP)     8.54 %     9.89 %     9.61 %     9.54 %     8.57 %
Merger-related and other charges     .47       .26       .73       .27       .63  
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     10.25       10.51       10.34       9.81       9.20  
Effect of goodwill and other intangibles     1.85       1.96       2.11       1.75       1.71  
Return on tangible common equity - operating     12.10 %     12.47 %     12.45 %     11.56 %     10.91 %
                                         
Return on assets reconciliation                                        
Return on assets (GAAP)     .89 %     1.03 %     1.00 %     1.04 %     .93 %
Merger-related and other charges     .05       .03       .08       .03       .07  
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     1.07 %     1.10 %     1.08 %     1.07 %     1.00 %
                                         
Dividend payout ratio reconciliation                                        
Dividend payout ratio (GAAP)     27.27 %     21.05 %     22.22 %     20.00 %     22.58 %
Merger-related and other charges     (.98 )     (.54 )     (1.71 )     (.56 )     (1.37 )
Impairment of deferred tax asset on canceled non-qualified stock options     -       (.51 )     -       -       -  
Release of disproportionate tax effects lodged in OCI     (3.21 )     -       -       -       -  
Dividend payout ratio - operating     23.08 %     20.00 %     20.51 %     19.44 %     21.21 %
                                         
Efficiency ratio reconciliation                                        
Efficiency ratio (GAAP)     59.29 %     57.65 %     60.78 %     59.02 %     61.94 %
Merger-related and other charges     (1.94 )     (1.07 )     (2.99 )     (1.20 )     (2.84 )
Efficiency ratio - operating     57.35 %     56.58 %     57.79 %     57.82 %     59.10 %
                                         
Average equity to assets reconciliation                                        
Equity to assets (GAAP)     10.24 %     10.35 %     10.38 %     10.72 %     10.72 %
Effect of goodwill and other intangibles     (1.28 )     (1.31 )     (1.40 )     (1.29 )     (1.31 )
Tangible equity to assets     8.96       9.04       8.98       9.43       9.41  
Effect of preferred equity     -       -       -       -       (.09 )
Tangible common equity to assets     8.96 %     9.04 %     8.98 %     9.43 %     9.32 %
                                         
Tangible common equity to risk-weighted assets reconciliation (1)                                        
Tier 1 capital ratio (Regulatory)     11.46 %     11.23 %     11.04 %     11.44 %     11.32 %
Effect of other comprehensive income     (.24 )     (.34 )     -       (.06 )     (.25 )
Effect of deferred tax limitation     1.13       1.26       1.50       1.63       1.85  
Effect of trust preferred     (.25 )     (.25 )     (.26 )     (.08 )     (.08 )
Basel III intangibles transition adjustment     (.03 )     (.06 )     (.06 )     (.06 )     (.07 )
Tangible common equity to risk-weighted assets     12.07 %     11.84 %     12.22 %     12.87 %     12.77 %

 

(1) First quarter 2017 ratios are preliminary.

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End

 

    2017     2016     Linked     Year over  
    First     Fourth     Third     Second     First     Quarter     Year  
(in millions)   Quarter     Quarter     Quarter     Quarter     Quarter     Change     Change  
LOANS BY CATEGORY                                                        
Owner occupied commercial RE   $ 1,633     $ 1,650     $ 1,587     $ 1,527     $ 1,509     $ (17 )   $ 124  
Income producing commercial RE     1,297       1,282       1,277       1,101       1,071       15       226  
Commercial & industrial     1,080       1,070       994       925       854       10       226  
Commercial construction     667       634       567       565       535       33       132  
Total commercial     4,677       4,636       4,425       4,118       3,969       41       708  
Residential mortgage     860       857       814       784       774       3       86  
Home equity lines of credit     659       655       693       616       597       4       62  
Residential construction     197       190       200       170       167       7       30  
Consumer installment     572       583       593       599       599       (11 )     (27 )
Total loans   $ 6,965     $ 6,921     $ 6,725     $ 6,287     $ 6,106       44       859  
                                                         
LOANS BY MARKET                                                        
North Georgia   $ 1,076     $ 1,097     $ 1,110     $ 1,097     $ 1,097       (21 )     (21 )
Atlanta MSA     1,408       1,399       1,332       1,314       1,257       9       151  
North Carolina     541       545       548       543       543       (4 )     (2 )
Coastal Georgia     591       581       565       541       543       10       48  
Gainesville MSA     252       248       236       240       248       4       4  
East Tennessee     483       504       506       509       495       (21 )     (12 )
South Carolina     1,243       1,233       1,199       862       821       10       422  
Specialized Lending     911       855       763       706       628       56       283  
Indirect auto     460       459       466       475       474       1       (14 )
Total loans   $ 6,965     $ 6,921     $ 6,725     $ 6,287     $ 6,106       44       859  

 

 

 

  

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

 

    First Quarter 2017     Fourth Quarter 2016     Third Quarter 2016  
    Nonperforming     Foreclosed     Total     Nonperforming     Foreclosed     Total     Nonperforming     Foreclosed     Total  
(in thousands)   Loans     Properties     NPAs     Loans     Properties     NPAs     Loans     Properties     NPAs  
NONPERFORMING ASSETS BY CATEGORY                                                                        
Owner occupied CRE   $ 6,135     $ 1,238     $ 7,373     $ 7,373     $ 3,145     $ 10,518     $ 7,693     $ 3,188     $ 10,881  
Income producing CRE     1,540       21       1,561       1,324       36       1,360       2,422       765       3,187  
Commercial & industrial     929       -       929       966       -       966       1,079       -       1,079  
Commercial construction     1,069       2,825       3,894       1,538       2,977       4,515       1,977       1,274       3,251  
Total commercial     9,673       4,084       13,757       11,201       6,158       17,359       13,171       5,227       18,398  
Residential mortgage     6,455       660       7,115       6,368       1,260       7,628       5,440       1,211       6,651  
Home equity lines of credit     1,848       261       2,109       1,831       531       2,362       1,194       514       1,708  
Residential construction     417       55       472       776       -       776       369       2,235       2,604  
Consumer installment     1,419       -       1,419       1,363       -       1,363       1,398       -       1,398  
 Total NPAs   $ 19,812     $ 5,060     $ 24,872     $ 21,539     $ 7,949     $ 29,488     $ 21,572     $ 9,187     $ 30,759  
                                                                         
NONPERFORMING ASSETS BY MARKET                                                                        
North Georgia   $ 5,344     $ 570     $ 5,914     $ 5,278     $ 856     $ 6,134     $ 5,356     $ 653     $ 6,009  
Atlanta MSA     715       645       1,360       1,259       716       1,975       979       1,530       2,509  
North Carolina     4,897       355       5,252       4,750       632       5,382       5,216       543       5,759  
Coastal Georgia     942       -       942       1,778       -       1,778       1,606       47       1,653  
Gainesville MSA     728       -       728       279       -       279       222       -       222  
East Tennessee     2,112       633       2,745       2,354       675       3,029       3,281       160       3,441  
South Carolina     1,725       2,857       4,582       2,494       5,070       7,564       2,015       6,254       8,269  
Specialized Lending     2,032       -       2,032       2,072       -       2,072       1,597       -       1,597  
Indirect auto     1,317       -       1,317       1,275       -       1,275       1,300       -       1,300  
 Total NPAs   $ 19,812     $ 5,060     $ 24,872     $ 21,539     $ 7,949     $ 29,488     $ 21,572     $ 9,187     $ 30,759  
                                                                         
NONPERFORMING ASSETS ACTIVITY                                                                        
Beginning Balance   $ 21,539     $ 7,949     $ 29,488     $ 21,572     $ 9,187     $ 30,759     $ 21,348     $ 6,176     $ 27,524  
Acquisitions     -       -       -       -       -       -       -       7,495       7,495  
Loans placed on non-accrual     3,172       -       3,172       6,346       -       6,346       6,680       -       6,680  
Payments received     (3,046 )     -       (3,046 )     (3,832 )     -       (3,832 )     (3,938 )     -       (3,938 )
Loan charge-offs     (1,292 )     -       (1,292 )     (1,293 )     -       (1,293 )     (1,236 )     -       (1,236 )
Foreclosures     (561 )     561       -       (1,254 )     1,530       276       (1,282 )     2,335       1,053  
Capitalized costs     -       -       -       -       26       26       -       3       3  
Property sales     -       (3,077 )     (3,077 )     -       (2,737 )     (2,737 )     -       (6,553 )     (6,553 )
Write downs     -       (480 )     (480 )     -       (254 )     (254 )     -       (53 )     (53 )
Net gains (losses) on sales     -       107       107       -       197       197       -       (216 )     (216 )
Ending Balance   $ 19,812     $ 5,060     $ 24,872     $ 21,539     $ 7,949     $ 29,488     $ 21,572     $ 9,187     $ 30,759  

 

    First Quarter 2017     Fourth Quarter 2016     Third 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   $ (212 )     (.05 )%   $ 1       - %   $ 46       .01 %
Income producing CRE     870       .28       527       .16       70       .02  
Commercial & industrial     (152 )     (.06 )     (201 )     (.08 )     453       .18  
Commercial construction     (370 )     (.23 )     241       .16       (194 )     (.13 )
 Total commercial     136       .01       568       .05       375       .03  
Residential mortgage     530       .25       322       .15       (47 )     (.02 )
Home equity lines of credit     422       .26       151       .09       267       .16  
Residential construction     (9 )     (.02 )     (16 )     (.03 )     242       .51  
Consumer installment     600       .42       514       .35       522       .34  
 Total   $ 1,679       .10     $ 1,539       .09     $ 1,359       .08  
                                                 
NET CHARGE-OFFS BY MARKET                                                
North Georgia   $ 15       .01 %   $ 575       .21 %   $ 68       .02 %
Atlanta MSA     (46 )     (.01 )     12       -       398       .12  
North Carolina     601       .45       714       .52       329       .24  
Coastal Georgia     (223 )     (.15 )     118       .08       432       .31  
Gainesville MSA     358       .58       (32 )     (.05 )     15       .03  
East Tennessee     55       .05       (139 )     (.11 )     (69 )     (.05 )
South Carolina     425       .14       (2 )     -       (66 )     (.02 )
Specialized Lending     195       .09       (21 )     (.01 )     69       .04  
Indirect auto     299       .27       314       .27       183       .15  
 Total   $ 1,679       .10     $ 1,539       .09     $ 1,359       .08  

 

(1) Annualized.

 

 

 

 

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Income (Unaudited)

 

 

    Three Months Ended  
    March 31,  
(in thousands, except per share data)   2017     2016  
             
Interest revenue:                
Loans, including fees   $ 72,727     $ 63,976  
Investment securities, including tax exempt of $279 and $166     17,712       15,788  
Deposits in banks and short-term investments     519       957  
Total interest revenue     90,958       80,721  
                 
Interest expense:                
Deposits:                
NOW     597       485  
Money market     1,426       1,108  
Savings     27       29  
Time     1,008       642  
Total deposit interest expense     3,058       2,264  
Short-term borrowings     40       87  
Federal Home Loan Bank advances     1,430       733  
Long-term debt     2,876       2,685  
Total interest expense     7,404       5,769  
Net interest revenue     83,554       74,952  
Release of (provision for) credit losses     800       (200 )
Net interest revenue after provision for credit losses     82,754       75,152  
                 
Fee revenue:                
Service charges and fees     10,604       10,126  
Mortgage loan and other related fees     4,424       3,289  
Brokerage fees     1,410       1,053  
Gains from sales of government guaranteed loans     1,959       1,237  
Securities gains, net     (2 )     379  
Other     3,679       2,522  
Total fee revenue     22,074       18,606  
Total revenue     104,828       93,758  
                 
Operating expenses:                
Salaries and employee benefits     36,691       33,062  
Communications and equipment     4,918       4,290  
Occupancy     4,949       4,723  
Advertising and public relations     1,061       864  
Postage, printing and supplies     1,370       1,280  
Professional fees     3,044       2,700  
FDIC assessments and other regulatory charges     1,283       1,524  
Amortization of intangibles     973       1,010  
Merger-related and other charges     2,054       2,653  
Other     6,483       5,779  
Total operating expenses     62,826       57,885  
 Net income before income taxes     42,002       35,873  
Income tax expense     18,478       13,578  
Net income     23,524       22,295  
Preferred stock dividends and discount accretion     -       21  
Net income available to common shareholders   $ 23,524     $ 22,274  
                 
Earnings per common share:                
Basic   $ .33     $ .31  
Diluted     .33       .31  
Weighted average common shares outstanding:                
Basic     71,700       72,162  
Diluted     71,708       72,166  

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)

 

    March 31,     December 31,  
(in thousands, except share and per share data)   2017     2016  
             
ASSETS                
Cash and due from banks   $ 90,151     $ 99,489  
Interest-bearing deposits in banks     140,822       117,859  
Cash and cash equivalents     230,973       217,348  
Securities available for sale     2,436,591       2,432,438  
Securities held to maturity (fair value $333,032 and $333,170)     329,992       329,843  
Mortgage loans held for sale (includes $15,845 and $27,891 at fair value)     16,491       29,878  
Loans, net of unearned income     6,964,990       6,920,636  
Less allowance for loan losses     (60,543 )     (61,422 )
Loans, net     6,904,447       6,859,214  
Premises and equipment, net     189,437       189,938  
Bank owned life insurance     154,150       143,543  
Accrued interest receivable     27,020       28,018  
Net deferred tax asset     139,383       154,336  
Derivative financial instruments     22,131       23,688  
Goodwill and other intangible assets     155,250       156,222  
Other assets     125,938       144,189  
Total assets   $ 10,731,803     $ 10,708,655  
LIABILITIES AND SHAREHOLDERS' EQUITY                
Liabilities:                
Deposits:                
Demand   $ 2,752,361     $ 2,637,004  
NOW     1,968,493       1,989,763  
Money market     1,831,145       1,846,440  
Savings     574,805       549,713  
Time     1,261,232       1,287,142  
Brokered     364,056       327,496  
Total deposits     8,752,092       8,637,558  
Short-term borrowings     -       5,000  
Federal Home Loan Bank advances     569,138       709,209  
Long-term debt     175,238       175,078  
Derivative financial instruments     26,425       27,648  
Accrued expenses and other liabilities     107,367       78,427  
Total liabilities     9,630,260       9,632,920  
Shareholders' equity:                
Preferred stock, $1 par value; 10,000,000 shares authorized; 0 shares issued and outstanding     -       -  
Common stock, $1 par value; 150,000,000 shares authorized; 70,972,753 and 70,899,114 shares issued and outstanding     70,973       70,899  
Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 0 shares issued and outstanding     -       -  
Common stock issuable; 546,511 and 519,874 shares     7,959       7,327  
Capital surplus     1,275,954       1,275,849  
Accumulated deficit     (234,384 )     (251,857 )
Accumulated other comprehensive loss     (18,959 )     (26,483 )
Total shareholders' equity     1,101,543       1,075,735  
Total liabilities and shareholders' equity   $ 10,731,803     $ 10,708,655  

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,

 

    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)   $ 6,903,860     $ 72,741       4.27 %   $ 6,003,568     $ 64,044       4.29 %
Taxable securities (3)     2,779,625       17,433       2.51       2,688,564       15,622       2.32  
Tax-exempt securities (FTE) (1)(3)     42,180       457       4.33       29,744       272       3.66  
Federal funds sold and other interest-earning assets     146,027       664       1.82       153,759       1,053       2.74  
                                                 
Total interest-earning assets (FTE)     9,871,692       91,295       3.74       8,875,635       80,991       3.67  
Non-interest-earning assets:                                                
Allowance for loan losses     (61,668 )                     (68,473 )                
Cash and due from banks     99,253                       85,635                  
Premises and equipment     190,096                       180,090                  
Other assets (3)     577,168                       561,261                  
Total assets   $ 10,676,541                     $ 9,634,148                  
                                                 
Liabilities and Shareholders' Equity:                                                
Interest-bearing liabilities:                                                
Interest-bearing deposits:                                                
NOW   $ 1,959,678       597       .12     $ 1,886,472       485       .10  
Money market     2,065,449       1,426       .28       1,840,584       1,108       .24  
Savings     560,634       27       .02       480,238       29       .02  
Time     1,263,946       815       .26       1,259,689       817       .26  
Brokered time deposits     98,340       193       .80       233,213       (175 )     (.30 )
Total interest-bearing deposits     5,948,047       3,058       .21       5,700,196       2,264       .16  
                                                 
Federal funds purchased and other borrowings     19,031       40       .85       34,906       87       1.00  
Federal Home Loan Bank advances     681,117       1,430       .85       346,169       733       .85  
Long-term debt     175,142       2,876       6.66       165,419       2,685       6.53  
Total borrowed funds     875,290       4,346       2.01       546,494       3,505       2.58  
                                                 
Total interest-bearing liabilities     6,823,337       7,404       .44       6,246,690       5,769       .37  
Non-interest-bearing liabilities:                                                
Non-interest-bearing deposits     2,643,630                       2,247,041                  
Other liabilities     116,752                       107,320                  
Total liabilities     9,583,719                       8,601,051                  
Shareholders' equity     1,092,822                       1,033,097                  
Total liabilities and shareholders' equity   $ 10,676,541                     $ 9,634,148                  
                                                 
Net interest revenue (FTE)           $ 83,891                     $ 75,222          
Net interest-rate spread (FTE)                     3.30 %                     3.30 %
                                                 
Net interest margin (FTE) (4)                     3.45 %                     3.41 %

 

(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 losses of $5.38 million in 2017 and pretax unrealized gains of $2.20 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.

 

 

 

 

Exhibit 99.2

 

2017 INVESTOR PRESENTATION FIRST QUARTER 2017 APRIL 26, 2017

 

 

ucbi.com | 2 Disclosures CAUTIONARY STATEMENT This investor presentation may contain forward - looking statements, as defined by federal securities laws, including statements about United and its financial outlook and business environment . These statements are based on current expectations and are provided to assist in the understanding of our operations and future financial performance . Our operations and 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 Community Banks, Inc . ’s filings with the Securities and Exchange Commission, including its 2016 Annual Report on Form 10 - K under the section entitled “Forward - Looking Statements . ” Forward - looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward - looking statements . NON - GAAP MEASURES This presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles (“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 measures include : “Net income – operating ,” “ Net income available to common shareholders – operating,” “Earnings per share – operating,” “Diluted earnings per share – operating,” “Tangible book value per share,” “Return on common equity – operating,” “Return on tangible common equity – operating,” “Return on assets – operating,” “Efficiency ratio – operating,” “Expenses – operating,” “Tangible common equity to risk - weighted assets,” and “Average tangible equity to average assets . ” This presentation also includes “pre - tax, pre - credit earnings,” which excludes the provision for credit losses, income taxes and merger - related and other charges . Management has included these non - GAAP measures because we believe they may provide useful supplemental information for evaluating our underlying performance trends . Further, management uses these measures in managing and evaluating our business and intends to refer to them in discussions about our operations and performance . Operating performance 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 GAAP measures can be found in the ‘Non - GAAP Reconciliation Tables’ included in the exhibits to this presentation . ucbi.com | 2

 

 

• Head quartered in Blairsville, GA • Regional Headquarters in Greenville, SC • Four state regional community bank: GA, NC, SC and TN • One of the largest community banks in the Southeast • Established in 1950 • 134 locations • 1,955 employees ucbi.com | 3 Snapshot of United Community Banks, Inc . ucbi.com | 3

 

 

ucbi.com | 4 United Foundation The Bank that SERVICE Built ® ucbi.com | 4

 

 

First Quarter 2017 Highlights ucbi.com | 5 $18.6 $23.5 $26.4 $25.2 $22.1 $16 $20 $24 $28 $32 1Q16 2Q16 3Q16 4Q16 1Q17 Fee Revenue in millions 8.57% 9.54% 9.61% 9.89% 8.54% 10.91% 11.56% 12.45% 12.47% 12.10% 5.00% 7.00% 9.00% 11.00% 13.00% 1Q16 2Q16 3Q16 4Q16 1Q17 Return on (Tangible) Common Equity ROCE - GAAP ROTCE - Operating (1) $75.0 $74.9 $79.0 $80.9 $83.6 $65 $70 $75 $80 $85 1Q16 2Q16 3Q16 4Q16 1Q17 Net Interest Revenue in millions $0.31 $0.35 $0.36 $0.38 $0.33 $0.33 $0.36 $0.39 $0.40 $0.39 $0.24 $0.28 $0.32 $0.36 $0.40 1Q16 2Q16 3Q16 4Q16 1Q17 Earnings Per Share GAAP Operating (1) .93% 1.04% 1.00% 1.03% .89% 1.00% 1.07% 1.08% 1.10% 1.07% 0.70% 0.80% 0.90% 1.00% 1.10% 1Q16 2Q16 3Q16 4Q16 1Q17 Return on Assets GAAP Operating (1) 3.41% 3.35% 3.34% 3.34% 3.45% 3.25% 3.30% 3.35% 3.40% 3.45% 1Q16 2Q16 3Q16 4Q16 1Q17 Net Interest Margin (fully taxable equivalent) 1.09% 1.02% 0.94% 0.89% 0.87% 0.80% 0.90% 1.00% 1.10% 1.20% 1Q16 2Q16 3Q16 4Q16 1Q17 Allowance as % of Total Loans 0.28% 0.28% 0.30% 0.28% 0.23% 0.10% 0.20% 0.30% 0.40% 0.50% 1Q16 2Q16 3Q16 4Q16 1Q17 Non - Performing Assets as % of Total Assets 0.14% 0.11% 0.08% 0.09% 0.10% 0.00% 0.05% 0.10% 0.15% 0.20% 1Q16 2Q16 3Q16 4Q16 1Q17 Net Charge - Offs as % of Average Loans EARNINGS PROFITABILITY ASSET QUALITY (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to G AAP performance measures ucbi.com | 5 (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to G AAP performance measures

 

 

(1) See non - GAAP reconciliation table slides at the end of the exhibits ( 2 ) Includes Tidelands as of the acquisition date of July 1, 2016 ucbi.com | 6 EARNINGS SUMMARY ($ in thousands) Net Income Available to Common Shareholders - GAAP 22,274$ 25,266$ 25,874$ 27,221$ 23,524$ (3,697)$ 1,250$ Net Income Available to Common Shareholders - Operating (1) 23,923 25,997 27,833 28,906 28,220 (686) 4,297 Net Interest Revenue 74,952 74,918 78,989 80,925 83,554 2,629 8,602 Fee Revenue 18,606 23,497 26,361 25,233 22,074 (3,159) 3,468 Expenses - GAAP 57,885 58,060 64,023 61,321 62,826 1,505 4,941 Expenses - Operating (1) 55,232 56,884 60,871 60,180 60,772 592 5,540 PER SHARE DATA Diluted EPS - GAAP 0.31$ 0.35$ 0.36$ 0.38$ 0.33$ (0.05)$ 0.02$ Diluted EPS - Operating (1) 0.33 0.36 0.39 0.40 0.39 (0.01) 0.06 Book Value per Share 14.35 14.80 15.12 15.06 15.40 0.34 1.05 Tangible Book Value per Share 12.40 12.84 13.00 12.95 13.30 0.35 0.90 KEY OPERATING PERFORMANCE MEASURES Return on Assets - GAAP 0.93 % 1.04 % 1.00 % 1.03 % 0.89 % (0.14) % (0.04) % Return on Assets - Operating (1) 1.00 1.07 1.08 1.10 1.07 (0.03) 0.07 Return on Common Equity - GAAP 8.57 9.54 9.61 9.89 8.54 (1.35) (0.03) Return on Tangible Common Equity - Operating (1) 10.91 11.56 12.45 12.47 12.10 (0.37) 1.19 Net Interest Margin (fully taxable equivalent) 3.41 3.35 3.34 3.34 3.45 0.11 0.04 Efficiency Ratio - GAAP 61.94 59.02 60.78 57.65 59.29 1.64 (2.65) Efficiency Ratio - Operating (1) 59.10 57.82 57.79 56.58 57.35 0.77 (1.75) ASSET QUALITY Allowance for Loan Losses to Loans 1.09 % 1.02 % 0.94 % 0.89 % 0.87 % (0.02) % (0.22) % NPAs to Loans and Foreclosed Properties 0.45 0.44 0.46 0.43 0.36 (0.07) (0.09) NPAs to Total Assets 0.28 0.28 0.30 0.28 0.23 (0.05) (0.05) AT PERIOD END ($ in millions) Loans 6,106$ 6,287$ 6,725$ 6,921$ 6,965$ 44$ 859$ Investment Securities 2,757 2,677 2,560 2,762 2,767 5 10 Total Assets 9,781 9,928 10,298 10,709 10,732 23 951 Deposits 7,960 7,857 8,442 8,638 8,752 114 792 1Q (3) 4Q 2016 4Q16 1Q16 Variance - Incr / (Decr) 3Q2Q 2017 1Q First Quarter 2017 Highlights ucbi.com | 6 (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to GAAP performance measures (2) Includes Tidelands as of the acquisition date of July 1, 2016

 

 

ucbi.com | 7 Holding Company 1Q17 4Q16 3Q16 2Q16 1Q16 Tier I Risk - Based Capital 11.5% 11.3% 11.0% 11.4% 11.3% Total Risk - Based Capital 12.3 12.1 11.9 12.4 12.3 Leverage 8.6 8.5 8.4 8.5 8.4 Tier I Common Risk - Based Capital 11.4 11.3 11.0 11.4 11.3 Tangible Common Equity to Risk - Weighted Assets 12.1 11.9 12.2 12.9 12.8 Average Tangible Equity to Average Assets 9.0 9.0 9.0 9.4 9.4 ► All regulatory capital ratios significantly above “well - capitalized” ► Continued strong earnings and $88.8 million of future DTA recovery driving regulatory capital growth ► Paid first quarter shareholder dividend of $0.09 per share on April 5, 2017 to shareholders of record on March 15, 2017; Up from $0.08 per share in 4Q16 and $0.07 per share in 1Q16 ► Stock repurchases of $13.6 million through September 30, 2016 (764,000 shares / average price of $17.85 per share); No purchases since 3Q16 ► Tidelands acquisition completed on July 1, 2016. No shares issued Capital Ratios Prudent Capital Management ucbi.com | 7

 

 

$75.0 $74.9 $79.0 $80.9 $83.6 $55.2 $56.9 $60.9 $60.2 $60.8 $38.3 $41.5 $44.5 $46.0 $44.9 $18.6 $23.5 $26.4 $25.2 $22.1 $10 $20 $30 $40 $50 $60 $70 $80 $90 1Q16 2Q16 3Q16 4Q16 1Q17 Net Interest Revenue Expenses - Operating (1) Pre-Tax, Pre-Credit Earnings (1) Fee Revenue ucbi.com | 8 1Q17 4Q16 1Q17 Salaries & Employee Benefits 36,691$ 1,014$ 3,629$ Communications & Equipment 4,918 165 628 Occupancy 4,949 (261) 226 FDIC Assessment 1,283 (130) (241) Advertising & Public Relations 1,061 (90) 197 Postage, Printing & Supplies 1,370 17 90 Professional Fees 3,044 271 344 Other Expense 7,456 (394) 667 Expenses - Operating (1) 60,772 592 5,540 Merger-Related and Other Charges 2,054 913 (599) Expenses - GAAP 62,826$ 1,505$ 4,941$ Variance - Incr/(Decr) 1Q17 4Q16 1Q16 Overdraft Fees 3,397$ (148)$ 4$ Interchange Fees 5,388 138 415 Other Service Charges 1,819 (39) 59 Total Service Charges and Fees 10,604 (49) 478 Mortgage Loan & Related Fees 4,424 (2,092) 1,135 Brokerage Fees 1,410 499 357 Gains from SBA Loan Sales 1,959 (1,069) 722 Securities Gains, Net (2) (62) (381) Other 3,679 (386) 1,157 Fee Revenue 22,074$ (3,159)$ 3,468$ Variance - Incr/(Decr) 1Q17 4Q16 1Q16 Net Interest Revenue 83,554$ 2,629$ 8,602$ Fee Revenue 22,074 (3,159) 3,468 Gross Revenue 105,628 (530) 12,070 Expenses - Operating (1) 60,772 592 5,540 Pre-Tax, Pre-Credit Earnings (1) 44,856 (1,122) 6,530 Provision for Credit Losses (800) 800 1,000 Release of disproportionate tax effects lodged in OCI (3,400) 3,400 3,400 Merger-Related and Other Charges (2,054) 913 (599) Income Taxes (15,078) (2,538) 1,500 Net Income - GAAP 26,924$ (3,697)$ 1,229$ Net Interest Margin 3.45 % 0.11 % 0.04 Variance - Incr/(Decr) $ in t housands $ in thousands $ in thousands Expenses Earnings (pre - tax, pre - credit) Fee Revenue M illions (1 ) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to GA AP performance measures Increasing Profitability Earnings, Fee Revenue, and Expenses ucbi.com | 8 (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to G AAP performance measures

 

 

$75.0 $74.9 $79.0 $80.9 $83.6 $40 $50 $60 $70 $80 $90 1Q16 2Q16 3Q16 4Q16 1Q17 4.29% 4.18% 4.27% 2.32% 2.38% 2.51% 0.16% 0.20% 0.21% 0% 1% 2% 3% 4% 5% 1Q16 2Q16 3Q16 4Q16 1Q17 0.26% 0.25% 0.26% 0.24% 0.26% 0.28% 0.10% 0.11% 0.12% .00% .10% .20% .30% .40% 1Q16 2Q16 3Q16 4Q16 1Q17 3.41% 3.35% 3.34% 3.34% 3.45% 3.00% 3.25% 3.50% ucbi.com | 9 Key Drivers 1Q17 Impacted By NET INTEREST REVENUE ► Accelerated discount accretion on called asset - backed securities ► Benefit of rising short - term interest rates Millions Loan / Securities / Deposit Yields Customer Deposit Pricing (2) Loan Yields (fully taxable equivalent) Investment Securities Yields - Taxable Average Rate on Interest Bearing Deposits (1) Net interest margin is calculated on a fully taxable equivalent basis (2) E xcludes brokered deposits Time MMDA NOW Increasing Profitability Net Interest Revenue / Margin (1) ucbi.com | 9 (1) Net interest margin is calculated on a fully - taxable equivalent basis (2) Excludes brokered deposits

 

 

ucbi.com | 10 1Q17 4Q16 1Q16 4Q16 1Q16 Commercial & Industrial 106.8$ 168.0$ 133.9$ (61.2)$ (27.1)$ Owner-Occupied CRE 79.5 139.5 79.4 (60.0) 0.1 Income-Producing CRE 102.2 160.4 114.3 (58.2) (12.1) Commercial Constr. 116.3 10.7 54.8 105.6 61.5 Total Commercial 404.8 478.6 382.4 (73.8) 22.4 Residential Mortgage 45.1 68.7 9.6 (23.6) 35.5 Residential HELOC 53.9 60.6 49.7 (6.7) 4.2 Residential Construction 56.2 83.7 28.9 (27.5) 27.3 Consumer 55.3 55.7 91.7 (.4) (36.4) Total 615.3$ 747.3$ 562.3$ (132.0)$ 53.0$ Variance-Incr(Decr) NOTE - Certain prior period amounts have been reclassified to conform to the current presentation (1) Represents new loans funded and net loan advances (net of payments on lines of credit) New Loans Funded and Advances $562.3 $662.0 $640.8 $747.3 $615.3 $500 $600 $700 $800 1Q16 2Q16 3Q16 4Q16 1Q17 New Loans Funded and Advances by Region New Loans Funded and Advances by Category 1Q17 4Q16 1Q16 4Q16 1Q16 Atlanta 112.6$ 143.6$ 89.0$ (31.0)$ 23.6 Coastal Georgia 44.3 34.4 39.2 9.9 5.1 North Georgia 63.2 74.4 51.3 (11.2) 11.9 North Carolina 30.2 36.1 30.4 (5.9) (0.2) Tennessee 19.7 34.6 27.7 (14.9) (8.0) Gainesville 31.7 20.3 12.5 11.4 19.2 South Carolina 121.1 146.3 97.5 (25.2) 23.6 Total Community Banks 422.8 489.7 347.6 (66.9) 75.2 Asset-based Lending 19.7 38.0 30.0 (18.3) (10.3) Commercial RE 42.0 48.3 22.8 (6.3) 19.2 Senior Care 24.1 17.4 - 6.7 24.1 Middle Market 14.0 32.8 39.3 (18.8) (25.3) SBA 25.0 54.7 21.5 (29.7) 3.5 Builder Finance 26.5 24.9 31.4 1.6 (4.9) Total Specialized Lending 151.3 216.1 145.0 (64.8) 6.3 Indirect Auto 41.2 41.5 69.7 (.3) (28.5) Total 615.3$ 747.3$ 562.3$ (132.0)$ 53.0$ Variance-Incr(Decr) Generating Growth New Loans Funded and Advances (1) ucbi.com | 10 Note – Certain prior period amounts have been reclassified to conform to the current presentation (1) Represents new loans funded and net loan advances (net of payments on lines of credit) $ in millions

 

 

2013 2014 2015 2016 1Q17 North Georgia 1,240$ 1,163$ 1,125$ 1,097$ 1,076$ Atlanta MSA 1,235 1,243 1,259 1,399 1,408 North Carolina 572 553 549 545 541 Coastal Georgia 423 456 537 581 591 Gainesville MSA 255 257 254 248 252 East Tennessee (1) 280 280 504 504 483 South Carolina (2) 4 30 819 1,233 1,243 Total Community Banks 4,009 3,982 5,047 5,607 5,594 Specialized Lending 124 421 492 855 911 Indirect Auto (3) 196 269 456 459 460 Total Loans 4,329$ 4,672$ 5,995$ 6,921$ 6,965$ $4.33 $4.67 $5.99 $6.92 $6.96 - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2013 2014 2015 2016 1Q17 Billions Commercial Construction Income-Producing Commercial Real Estate Owner-Occupied Commercial Real Estate Commercial & Industrial Indirect Auto Residential HELOC Residential Mortgage Residential Construction Consumer Commercial Retail 2013 2014 2015 2016 1Q17 Commercial & Industrial 471$ 710$ 785$ 1,070$ 1,080$ Owner-Occupied CRE 1,238 1,257 1,571 1,650 1,633 Income-Producing CRE 807 767 1,021 1,282 1,297 Commercial Constr. 336 364 518 634 667 Total Commercial 2,852 3,098 3,895 4,636 4,677 Residential Mortgage 604 614 764 857 860 Residential HELOC 430 456 589 655 659 Residential Construction 136 131 176 190 197 Consumer 111 104 115 124 112 Indirect Auto 196 269 456 459 460 Total Loans 4,329$ 4,672$ 5,995$ 6,921$ 6,965$ ucbi.com | 11 (1) Includes $244 million from the acquisition of FNB on May 1, 2015 (2) Includes $733 million and $306 million, respectively, from the acquisitions of Palmetto on September 1, 2015 and Tidelands on July 1, 2016 (3) Includes $63 million from the acquisition of Palmetto on September 1, 2015 Loans by Category i n millions Loans by Region i n millions NOTE - Certain prior period amounts in the loans by category table have been reclassified to conform to the current presentation Generating Growth Loan Mix ucbi.com | 11 Note – Certain prior period amounts have been reclassified to conform to the current presentation

 

 

2013 2014 2015 2016 1Q17 2013 2014 2015 2016 1Q17 Demand Deposit 123$ 161$ 618$ 334$ 161$ Non-Interest Bearing Core NOW 4 9 441 5 19 Demand Deposit 1,311$ 1,471$ 2,089$ 2,423$ 2,584$ MMDA 73 41 325 246 (16) Savings 24 41 177 79 25 Interest Bearing Core Growth by Category 224$ 252$ 1,561$ 664$ 189$ Total CommercialNOW 659 668 1,109 1,114 1,133 MMDA 1,218 1,259 1,584 1,830 1,814 Atlanta MSA 75$ 84$ 223$ 168$ 60$ Savings 250 292 469 548 573 North Georgia 62 90 158 133 42 Total Interest Bearing Core 2,127 2,219 3,162 3,492 3,520 North Carolina 42 35 63 62 17 Coastal Georgia 2 22 24 16 27 Total Core Trans Deposits 3,438 3,690 5,251 5,915 6,104 East Tennessee (1) 4 8 234 (16) (2) Gainesville MSA 19 10 34 48 7 Time (Customer) 1,445 1,223 1,251 1,267 1,241 South Carolina (2) 20 3 825 253 38 Public Funds (Customer) 894 989 1,032 1,128 1,043 Growth by Region 224$ 252$ 1,561$ 664$ 189$ Brokered 412 425 339 328 364 Total LoansTotal Deposits 6,189$ 6,327$ 7,873$ 8,638$ 8,752$ ucbi.com | 12 NOTE - Certain prior period amounts in the loans by category table have been reclassified to conform to the current presentation Generating Growth Deposit Mix $5.78 $5.90 $7.53 $8.31 $8.39 - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 2013 2014 2015 2016 1Q17 Billions Public Funds (customer) Time (customer) Interest Bearing Core Transaction Non-Interest Bearing Core Transaction Time & Public Core Transaction Core Transaction Deposit Growth by Category & Region i n millions Deposits by Category i n millions (1) Includes $ 247 million from the acquisition of FNB on May 1, 2015 (2) Includes $790 million and $175 million, respectively, from the acquisition of Palmetto on September 1, 2015 and Tidelands on July 1, 2016 ucbi.com | 12

 

 

$ 2.02 $ 2.13 $3.16 $3.49 $3.52 $1.19 $1.47 $2.09 $2.42 $2.58 $3.44 $3.69 $5.25 $5.91 $6.10 - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2013 2014 2015 2016 1Q17 Billions Non-Interest Bearing Core Transaction Interest Bearing Core Transaction ucbi.com | 13 High - Quality, Low - Cost Core Transaction Deposit Base 0.31% 0.18% 0.21% 0.00% 0.25% 0.50% 0.75% 1.00% 2013 2014 2015 2016 1Q17 Cost of Interest Bearing Deposits Generating Growth Deposit Mix ucbi.com | 13

 

 

Net Charge-offs 2.1$ 1.7$ 1.4$ 1.5$ 1.7$ as % of Average Loans 0.14 % 0.11 % 0.08 % 0.09 % 0.10 % Allowance for Loan Losses 66.3$ 64.3$ 63.0$ 61.4$ 60.5$ as % of Total Loans 1.09 % 1.02 % 0.94 % 0.89 % 0.87 % as % of NPLs 296 301 292 285 306 Past Due Loans (30 - 89 Days) 0.21 % 0.22 % 0.33 % 0.25 % 0.23 % Non-Performing Loans 22.4$ 21.3$ 21.6$ 21.5$ 19.8$ OREO 5.2 6.2 9.2 8.0 5.1 Total NPAs 27.6 27.5 30.8 29.5 24.9 Performing Classified Loans 121.1 118.5 121.6 114.3 108.8 Total Classified Assets 148.7$ 146.0$ 152.4$ 143.8$ 133.7$ as % of Tier 1 / Allowance 16 % 15 % 15 % 14 % 13 % Accruing TDRs 72.8$ 73.3$ 70.1$ 67.8$ 64.9$ Total NPAs as % of Total Assets 0.28 0.28 0.30 0.28 0.23 as % of Loans & OREO 0.45 0.44 0.46 0.43 0.36 1Q16 2Q16 3Q16 4Q16 1Q17 $ in millions ucbi.com | 14 Protecting High - Quality Balance Sheet Credit Quality ucbi.com | 14

 

 

ucbi.com | 15 10.1 10.5 10.8 10.7 10.6 2.9 4.6 5.8 4.1 3.7 1.1 1.1 1.2 0.9 1.4 3.3 4.5 6.1 6.5 4.4 1.2 2.8 2.5 3.0 2.0 $18.6 $23.5 $26.4 $25.2 $22.1 $0 $5 $10 $15 $20 $25 $30 1Q16 2Q16 3Q16 4Q16 1Q17 Fee Revenue in millions Service Charges Other Brokerage Mortgage SBA $3.3 $4.5 $6.1 $6.5 $4.4 $0 $1 $2 $3 $4 $5 $6 $7 1Q16 2Q16 3Q16 4Q16 1Q17 Mortgage Fees and Production in millions $146 $182 $194 $194 $151 $- $50 $100 $150 $200 SBA ► 1Q17 Sales $23 million ► 4Q16 Sales $41 million ► 1Q16 Sales $13 million ► Target market: small businesses with revenue between $ 1 million and $ 25 million ► Two Channels • Footprint • National Verticals Mortgage ► Growth Strategy • Building on proven strengths in legacy markets of capturing business from a large percentage of United customers • Increase sales capacity in metro area growth markets • Compete favorably on product and service with banks and non - banks of all sizes $1.2 $2.8 $2.5 $3.0 $2.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 1Q16 2Q16 3Q16 4Q16 1Q17 SBA Fees (Gains ) and Production in millions $22 $45 $37 $55 $25 $- $10 $20 $30 $40 $50 $60 Mortgage Fees SBA Fees ----- SBA Production ----- Mortgage Production Increasing Profitability Driving Fee Revenue Through Core Banking Infrastructure ucbi.com | 15

 

 

ucbi.com | 16 ► Efficiency improvements are attributable to various expense reduction initiatives while maintaining high business growth ► Declining trend sustained while making substantial investments in growth and infrastructure 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 TGT GAAP 65.4% 63.1% 58.3% 59.2% 61.6% 64.7% 69.0% 61.9% 59.0% 60.8% 57.7% 59.3% Non-GAAP Adjustments 0.0% 0.0% 0.0% 0.0% 4.0% 6.8% 9.6% 2.8% 1.2% 3.0% 1.1% 2.0% Operating 65.4% 63.1% 58.3% 59.2% 57.6% 57.8% 59.4% 59.1% 57.8% 57.8% 56.6% 57.3% 57.0% 50.0% 55.0% 60.0% 65.0% 70.0% Efficiency Ratio (1) (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to G AAP performance measures Increasing Profitability Expense Discipline ucbi.com | 16 (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to G AAP performance measures

 

 

19.3% 8.1% 7.8% HCSB UCBI South Carolina Rank Bank Branches Deposits ($MM) Mkt. Share (%) 1. BB&T 27 1,829 24.1 2. CNB Corp. 14 813 10.7 3. Wells Fargo 10 704 9.3 4. Bank of America 9 601 7.9 5. UCBI Pro Forma 10 452 5.9 Strong Demographics Myrtle Beach is the fastest growing MSA in the state Compelling Financial Returns x 3 cents, or 2%, accretive to fully diluted EPS , excluding one - time merger charges x Neutral to tangible book value per share x Neutral to Tier 1 Capital x IRR: +20% Transaction Overview • 100% stock, fixed exchange ratio 0.0050x shares − [$65] million transaction value (1) • 1.40% adjusted P / TBV (2) • United plans to recover DTA and related tax benefits totaling approximately $11 million Company Snapshot • Assets: $376 million • Loans: $215 million • Deposits: $313 million • Equity: $35 million • Branches: 8 Proj. Pop. Growth ’17 - ’22 Top 5 Deposit Market Share in Myrtle Beach MSA 95 26 20 74 40 Charleston North Charleston Mount Pleasant Summerville Myrtle Beach Florence 95 Sumter Wilmington HCSB Branches UCBI Branches x Enhances franchise footprint in attractive Myrtle Beach market with #5 deposit market share rank x Partnering with a well - established community bank located in South Carolina’s fastest growing market x Strategically and financially attractive combination Acquisition of HCSB Financial Corporation Source: SNL Financial Note 1 – Based on United’s closing price of $26.70 per share on April 19, 2017 Note 2 – Tangible book value adjusted for recovery of deferred tax asset ucbi.com | 17

 

 

2017 INVESTOR PRESENTATION Exhibits FIRST QUARTER 2017 APRIL 26, 2017

 

 

ucbi.com | 19 Protecting High - Quality Balance Sheet ► Underwriting conservatism and portfolio diversification ► Top quartile credit quality performance ► Prudent capital, liquidity and interest - rate risk management ► Focused on improving return to shareholders with increasing return on tangible common equity and dividend growth Increasing Profitability ► Managing a steady margin with minimal accretion income ► Fee revenue expansion through focused growth initiatives ► Continued operating expense discipline while investing in growth opportunities ► Executing on M&A cost savings ► High - quality, low - cost core deposit base Generating Growth ► Entered into and continue to target new markets with team lift - outs (Charleston, Greenville, Atlanta) ► Continuous emphasis on and enhancement of Mortgage product offerings to drive loan and revenue growth ► Addition of Specialized Lending platforms (income - property, asset - based, middle - market, SBA, senior living, builder finance) and actively pursuing additional lending platforms ► Acquisitions that fit our footprint and culture and deliver desired financial returns United Community Banks, Inc . Who We Are ucbi.com | 19

 

 

ucbi.com | 20 Granular Portfolio – Exposure and Industry Limits • Legal Lending Limit $ 261M • House Lending Limit 28M • Project Lending Limit 17M • Top 25 Relationships 403M Concentration limits set for all segments of the portfolio Protecting High - Quality Balance Sheet Disciplined Credit Processes ucbi.com | 20 STRUCTURE • Centralized underwriting and approval process for consumer credit • Distributed Regional Credit Officers (reporting to Credit) for commercial • Dedicated Special Assets team • Eight of the top twelve credit leaders recruited post - crisis PROCESS • Weekly Senior Credit Committee • Continuous external loan review • Monthly commercial asset quality review • Monthly retail asset quality review meetings POLICY • Continuous review and enhancements to credit policy • Quarterly reviews of portfolio limits and concentrations

 

 

ucbi.com | 21 15% 19% 23% 3% 10% 22% 8% $7.0 Billion Loan Portfolio as of 3/31/2017 Commercial (C&I) CRE Income Producing CRE Owner-Occupied Residential Construction Commercial Construction Residential Mortgage & HELOC Installment ► Specialized Lending, which began in 2013, had loans totaling $911 million at March 31, 2017 (13% of the loan portfolio). NOTE – Certain prior period amounts have been reclassified to conform to the current presentation Protecting High - Quality Balance Sheet Loan Portfolio Diversification ucbi.com | 21 Note – Certain prior period amounts have been reclassified to conform to the current presentation

 

 

Note: Peer comparison banks comprise the KBW Regional Bank Index (ticker: KRX) Protecting High - Quality Balance Sheet ucbi.com | 22 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% CBSH BOH UMPQ CVBF WABC PB VLY BPFH CBU UCBI PNFP OZRK CFR UMBF COLB EWBC FFIN MBFI ISBC FNB WTFC SBNY BKU WAL FCF WBS PFS CATY BXS WAFD FHN SNV STBA STL BRKL FULT FMBI GBCI BOKF PACW TRMK TCBI UBSI ASB ONB TCB IBKC HBHC BPOP 4Q16 NPA Ratio Median ► Eight of the top twelve credit leaders recruited post - crisis ► Centralization of special assets ► Centralization of consumer loan underwriting and approval ► Changed commercial approval process, including a Senior Credit Committee for visibility and culture building ► Instituted highly - disciplined concentration management process ► Dedicated credit officers for all specialty businesses and community markets Protecting High - Quality Balance Sheet Excellent Credit Performance & Management ucbi.com | 22 Source: SNL Financial LC Note – Peer comparison banks comprise the KBW Regional Bank Index ( ticker:KRX )

 

 

ucbi.com | 23 By Category 1Q16 2Q16 3Q16 4Q16 1Q17 Commercial & Industrial 9$ 9$ 10$ 9$ 10$ Owner-Occupied CRE 38 38 42 42 41 Total Commercial & Industrial 47 47 52 51 51 Income-Producing CRE 38 35 32 29 24 Commercial Construction 5 6 9 9 9 Total Commercial 90 88 93 89 84 Residential Mortgage 20 20 18 15 15 Residential HELOC 6 6 5 5 6 Residential Construction 3 3 4 3 2 Consumer / Installment 2 2 2 2 2 Total Performing Classified 121$ 119$ 122$ 114$ 109$ Classified to Tier 1 + ALL 16% 15% 15% 14% 13% $121 $119 $122 $114 $109 $100 $120 $140 1Q16 2Q16 3Q16 4Q16 1Q17 NOTE - Certain prior period amounts have been reclassified to conform to the current presentation Protecting High - Quality Balance Sheet Performing Classified Loans ucbi.com | 23 Note – Certain prior period amounts have been reclassified to conform to the current presentation $ in millions

 

 

$72.8 $73.3 $70.1 $67.8 $64.9 $60 $70 $80 $90 1Q16 2Q16 3Q16 4Q16 1Q17 ucbi.com | 24 LOAN TYPE 1Q17(1) 4Q16 1Q16 1Q17(1) 4Q16 1Q16 1Q17(1) 4Q16 1Q16 Commercial & Industrial 1.3$ 1.3$ 2.2$ -$ 0.1$ -$ 1.3$ 1.4$ 2.2$ Owner-Occupied CRE 23.9 24.5 24.7 0.6 1.7 2.6 24.5 26.2 27.3 Income-Producing CRE 21.6 23.6 20.5 0.1 0.1 0.2 21.7 23.7 20.7 Commercial Construction 4.1 4.1 1.4 0.8 0.9 0.1 4.9 5.0 1.5 Total Commercial 50.9 53.5 48.8 1.5 2.8 2.9 52.4 56.3 51.7 Residential Mortgage 11.6 11.8 17.9 1.9 1.9 1.2 13.5 13.7 19.1 Residential HELOC 0.1 0.1 - - - - 0.1 0.1 - Residential Construction 1.4 1.4 5.2 0.2 0.2 0.1 1.6 1.6 5.3 Consumer / Installment 0.9 1.0 0.9 0.4 0.4 0.2 1.3 1.4 1.1 Total TDRs 64.9$ 67.8$ 72.8$ 4.0$ 5.3$ 4.4$ 68.9$ 73.1$ 77.2$ Accruing Non-Accruing Total TDRs Accruing TDRs ► 3.3% of accruing TDRs are past due 30 – 89 days ► 69.4% of accruing TDRs are pass credits NOTE - Certain prior period amounts have been reclassified to conform to the current presentation (1) 87% of accruing TDR loans have an interest rate of 4% or greater Protecting High - Quality Balance Sheet TDRs ucbi.com | 24 Note – Certain prior period amounts have been reclassified to conform to the current presentation (1) 86% of accruing TDR loans have an interest rate of 4% or greater $ in millions

 

 

Protecting High - Quality Balance Sheet Commercial Real Estate Diversification ucbi.com | 25 Retail Building 143$ 13.1 % 90$ 13.5 % Assisted Living/Nursing Home/Rehab 140 12.9 18 2.7 Multi-Residential 121 11.1 92 13.8 Office Buildings 123 11.3 65 9.7 Commercial Residential CIP: Spec 87 8.0 57 8.5 Land Develop - Vacant (Improved) 69 6.3 56 8.4 Commercial Residential Land Development: Builder Lots 66 6.1 63 9.4 Hotels / Motels 62 5.7 23 3.5 Other Properties 57 5.2 35 5.2 Commercial Residential CIP: Presold 43 4.0 27 4.1 Raw Land - Vacant (Unimproved) 39 3.6 31 4.7 Commercial Residential Land Development: Subdivisions in 32 2.9 26 3.9 Warehouse 32 2.9 30 4.5 Churches 28 2.6 14 2.1 Commercial Residential Raw Land 17 1.6 16 2.4 Commercial Land Development 14 1.3 13 1.9 Restaurants / Franchise 12 1.1 8 1.2 Leasehold Property 3 0.3 3 0.5 Total Commercial Construction 1,088$ 100.0 % 667$ 100.0 % OutstandingCommitted Commercial Real Estate – Income Producing in millions Commercial Construction in millions Office Buildings 341$ 25.0 % 325$ 25.0 % Retail Building 313 22.9 295 22.7 Investor Residential 172 12.6 171 13.2 Warehouse 123 9.0 118 9.1 Hotels / Motels 121 8.9 111 8.6 Multi-Residential 81 5.9 77 5.9 Other Properties 67 4.9 62 4.8 Convenience Stores 45 3.3 43 3.3 Restaurants / Franchise Fast Food 35 2.6 34 2.6 Manufacturing Facility 25 1.8 23 1.8 Leasehold Property 25 1.8 19 1.5 Automotive Service 6 0.4 6 0.5 Daycare Facility 5 0.4 5 0.4 Mobile Home Parks 5 0.4 5 0.4 Automotive Dealership 2 0.1 3 0.2 Total Commercial Real Estate - Income Producing 1,366$ 100.0 % 1,297$ 100.0 % Committed Outstanding Outstanding Average Loan Size (in thousands ) • Commercial Construction $386 • Commercial RE: • Composite CRE 389 • Owner - Occupied 376 • Income - Producing 406 Committed Average Loan Size (in thousands ) • Commercial Construction $623 • Commercial RE: • Composite CRE 410 • Owner - Occupied 399 • Income - Producing 426 ucbi.com | 25

 

 

ucbi.com | 26 Capacity 1Q17 4Q16 1Q16 vs 4Q16 vs 1Q16 WHOLESALE BORROWINGS Brokered Deposits (1) 1,073$ 364$ 328$ 447$ 36$ (83)$ FHLB 1,372 569 709 510 (140) 59 Holding Company LOC 50 - - - - - Fed Funds 720 - 5 - (5) - Other Wholesale 1,187 - - - - - Total 4,402$ 933$ 1,042$ 957$ (109)$ (24)$ LONG-TERM DEBT (par) / CASH - HOLDING COMPANY Senior Debt 160$ 160$ 160$ -$ -$ Trust Preferred Securities 20 20 6 - 14 Total Long-Term Debt 180$ 180$ 166$ -$ 14$ Cash 86$ 43$ 71$ 43$ 15$ LOANS / CUSTOMER DEPOSITS Loans 6,965$ 6,921$ 6,106$ 44$ 859$ Core (DDA, MMDA, Savings) 6,104$ 5,915$ 5,364$ 189$ 740$ Public Funds 1,043 1,128 952 (85) 91 CD's 1,241 1,267 1,204 (26) 37 Total Customer Deposits (excl Brokered) 8,388$ 8,310$ 7,520$ 78$ 868$ INVESTMENT SECURITIES Available for Sale -Fixed 1,832$ 1,831$ 1,783$ 1$ 49$ -Floating 605 601 622 4 (17) Held to Maturity -Fixed 328 327 348 1 (20) -Floating 2 3 4 (1) (2) Total Investment Securities 2,767$ 2,762$ 2,757$ 5$ 10$ 25% 25% 26% Floating as % of Total Securities 22% 22% 23% Floating AFS Securities as % of Total AFS Securities (1) Estimated brokered deposit total capacity at 10% of assets Protecting High - Quality Balance Sheet Liquidity ucbi.com | 26 (1) Estimated brokered deposit total capacity at 10% of assets $ in millions

 

 

Note: Peer comparison banks comprise the KBW Regional Bank Index (ticker: KRX) ucbi.com | 27 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% CFR COLB WABC CVBF FFIN BOH CBU FMBI CBSH UMBF TRMK UCBI FCF ONB PACW BOKF UMPQ MBFI WAL FHN PB TCBI BXS GBCI ASB HBHC WBS SNV FNB BPFH PFS UBSI WTFC FULT EWBC PNFP TCB IBKC STL FFBC STBA SBNY OZRK BRKL BPOP VLY WAFD ISBC CATY HOPE BKU 4Q16 Cost of Deposits Median ► Our fourth quarter 2016 total cost of deposits was 14 basis points, which compared favorably to peers with a median of 25 basis points ► Core deposits (excludes Jumbo CDs / Brokered) comprised approximately 93% of our total customer deposits at December 31, 2016 Increasing Profitability High - Quality, Low - Cost Core Deposit Base ucbi.com | 27 Source: SNL Financial LC Note – Peer comparison banks comprise the KBW Regional Bank Index ( ticker:KRX )

 

 

Generating Growth Steady Loan Growth ucbi.com | 28 $4.51 $4.96 $6.61 $1.04 $0.31 $0.16 $4.33 $4.67 $6.00 $6.92 $6.96 $3.00 $4.00 $5.00 $6.00 $7.00 2013 2014 2015 2016 1Q17 Millions Total Loans in billions Organic Acquired Healthcare (sold 4Q15) ucbi.com | 28

 

 

ucbi.com | 29 (1) (2) (2) (2) (1) (1) North Georgia $ 6.5 $ 2.4 9 19 36% 1 Atlanta, Georgia 66.2 2.6 10 34 4 7 Gainesville, Georgia 3.2 0.4 1 5 11 4 Coastal Georgia 8.7 0.4 2 7 4 8 Western North Carolina 11.9 1.0 1 19 8 3 East Tennessee 17.4 0.6 2 11 3 6 Upstate South Carolina 23.2 1.1 4 25 5 7 Coastal South Carolina 20.8 0.3 1 7 2 14 Loan Production Offices - - - 7 Total Markets $ 157.9 $ 8.8 30 134 Market Deposits United Deposits Deposit Share Banks Offices Rank Generating Growth Market Share Growth Opportunities ucbi.com | 29 (1) FDIC deposit market share and rank as of June 30, 2016 for markets where United takes deposits (Source: FDIC) (2) Based on current quarter $ in billions

 

 

ucbi.com | 30 3.32% 4.38% 5.21% 6.10% 6.61% 6.69% 7.10% 8.66% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Knoxville, TN Cleveland, TN Asheville, NC Greenville, SC Gainesville, GA Atlanta, GA Savannah, GA Charleston, SC Key MSA Growth Markets Projected Change 2017 - 2022 3.77% 3.90% 5.00% 5.17% 5.75% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% United States Tennessee North Carolina Georgia South Carolina State Population Growth Projected Change 2017 – 2022 Generating Growth Market Share Demographics ucbi.com | 30 Source: SNL Financial

 

 

► M&A accelerates our growth strategy in new and existing markets and can be accomplished more efficiently than with a de novo plan ; we seek to pair M&A with organic growth opportunities, including adding teams of local bankers to quickly increase growth . ► We are interested in pursuing transactions in our target markets including : • Coastal South Carolina – Charleston, Myrtle Beach, Hilton Head ; • East Tennessee – Knoxville to Chattanooga and Cleveland ; • Atlanta – Northern region ; and • North Carolina – Western (Asheville area) to Eastern (Raleigh/Cary area) . ► While larger transformational deals are not out of the question, we have decided to focus on roll - up targets, as we believe there are more actionable opportunities with a shorter time to complete and less risk . ► We carefully evaluate and price potential acquisitions with specific financial return targets in mind, including : • Year one EPS accretion, not including transaction expenses ; • TBV dilution threshold in the low single digits and earnback within three years ; and • IRR of 20 %+. ucbi.com | 31 Generating Growth Mergers & Acquisitions Strategy ucbi.com | 31

 

 

ucbi.com | 32 INTERSTATE 26 INTERSTATE 95 Myrtle Beach Garden City Beach North Charleston Summerville Charleston Hilton Head Island Savannah Transaction Summary Headquarters Mt. Pleasant, SC Established 2003 Branches (7) Charleston (4) Myrtle Beach (2) Hilton Head (1) Assets ($MM) $451 Total Gross Loans ($MM) $306 Deposits ($MM) $402 NPAs / Assets (1) 4.40% • Closed on July 1, 2016 • Conversion completed on November 11, 2016 • $11.2 million aggregate transaction value; 100% cash consideration ‒ $2.2 million value to common, or $0.52 per common share ‒ $9.0 million to redeem TARP, which represents a 56% discount • Target cost savings: approximately $5.0 million (completed 4Q16) • Total credit mark: $17.8 million ‒ Loan mark of $15.4 million gross or 4.8% of gross loans ‒ OREO mark of $2.4 million or 24% of year - end 2015 balances ‒ Covers nonaccrual loans and OREO of $ 20.5 million • Estimated $0.09 to $0.10 EPS accretive in 2017 • Tangible book value dilution of approximately 1.5% with expected earn - back in just over two years • Anticipated internal rate of return in excess of 20% Transaction Rationale • Significantly accelerates UCBI’s Coastal South Carolina expansion and leverages existing lift - out team of experienced bankers and in - market resources, fully executing the two - step Coastal SC growth plan • Tidelands’ markets are in the top 10 fastest growing in the U.S • Significant cost synergies enhance already compelling deal economics • Consistent with UCBI’s Southeastern expansion strategy • Projected e arnings accretion offsets the estimated earnings reduction associated with crossing the $10 billion threshold • Integration risk is offset by merger experience / preparedness and local management already in place (1) NPAs / Assets = (Nonaccrual L oans + OREO) / Total A ssets Generating Growth 2016 Acquisition – Tidelands Bancshares, Inc. UCBI Tidelands ucbi.com | 32 Source: SNL Financial – Financial Metrics as of December 31, 2015 (1) NPAs / Assets = (Nonaccrual Loans + OREO) / Total Assets

 

 

UCBI MoneyTree • Closed on May 1 with successful operational conversion on July 18 - 19; business has remained stable • Added a $425 million, 107 year old community bank • Doubled UCBI’s East TN presence in key markets – Knoxville, Lenoir City and Cleveland • Consolidated six branches – three UCBI and three MoneyTree / FNB branches and now have 12 branches • Executed on cost savings, which exceeded original estimates due mainly to branch overlap and back office redundancies • Expect EPS accretion of 3% in 2017 • TBV dilution of <1% and breakeven in < 3 years • Closed on September 1 with successful operational conversion on February 21 - 22 • Added a $1.2 billion,109 year old community bank with 25 branches covering Upstate SC • United had previously established a regional headquarters in Greenville, including several members of Executive Management; however, only one existing branch • Retained Senior Management positions in Banking, Mortgage, Finance and Ops/IT for business continuity and to lead growth • Targeted cost savings fully realized in 2Q16 • Double - digit EPS accretion in 2017 with TBV earnback < 5 years and IRR > 20% UCBI Palmetto ucbi.com | 33 MoneyTree Corp./FNB The Palmetto Bank Generating Growth 2015 Acquisitions ucbi.com | 33

 

 

Jimmy C. Tallent Chairman & CEO Joined 1984 H. Lynn Harton Board, President & COO Joined 2012 Bill M. Gilbert President, Community Banking Joined 2000 Bradley J. Miller EVP, CRO & General Counsel Joined 2007 • Over 40 years in banking • Led company from $42 million in assets in 1989 to $10.7 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 30 years in banking • Responsible for overall banking, credit and operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 25 years in financial services • Responsible for finance and reporting, accounting, M&A and investor relations • Former Associate Director of Research for Keefe, Bruyette and Woods • Georgia State’s J. Mack Robinson College of Business Advisory Board • Over 35 years in banking • Responsible for 30 community banks with 134 banking offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 20 years experience in consumer and banking law • Responsible for legal , enterprise r isk m anagement , and compliance • Chairman of the Georgia Bankers Association Bank Counsel Section • Member of the American Bankers Association Regional General Counsels Robert A. Edwards EVP & CCO Joined 2015 Richard W. Bradshaw President, Specialized Lending Joined 2014 • Over 25 years in lending • Responsible for specialized lending • Former SBA head: TD Bank and Carolina First’s SBA programs; President of UPS Capital Business Credit • Highly decorated Commander in the U.S. Naval Reserve Intelligence Program (retired) • Over 25 years in banking • Responsible for credit risk including credit underwriting, policy and special assets • Former EVP & Executive Credit Officer for TD Bank, NA and Chief Credit Officer of The South Financial Group. ucbi.com | 34 Jefferson L. Harralson EVP & CFO Joined 2017 Experienced Proven Leadership ucbi.com | 34

 

 

1Q16 2Q16 3Q16 4Q16 1Q17 Net Income Net income - GAAP 22,295$ 25,266$ 25,874$ 27,221$ 23,524$ Merger-related and other charges 2,653 1,176 3,152 1,141 2,054 Tax benefit on merger-related and other charges (1,004) (445) (1,193) (432) (758) Impairment of deferred tax asset on cancelled nonqualified stock options - - - 976 - Release of disproportionate tax effects lodged in OCI - - - - 3,400 Net income - Operating 23,944$ 25,997$ 27,833$ 28,906$ 28,220$ Diluted Earnings per share Diluted earnings per share - GAAP 0.31$ 0.35$ 0.36$ 0.38$ 0.33$ Merger-related and other charges 0.02 0.01 0.03 0.01 0.01 Impairment of deferred tax asset on cancelled nonqualified stock options - - - 0.01 - Release of disproportionate tax effects lodged in OCI - - - - 0.05 Diluted earnings per share - Operating 0.33$ 0.36$ 0.39$ 0.40$ 0.39$ Return on Assets Return on assets - GAAP 0.93 % 1.04 % 1.00 % 1.03 % 0.89 % Merger-related and other charges 0.07 0.03 0.08 0.03 0.05 Impairment of deferred tax asset on cancelled nonqualified stock options - - - 0.04 - Release of disproportionate tax effects lodged in OCI - - - - 0.13 Return on assets - Operating 1.00 % 1.07 % 1.08 % 1.10 % 1.07 % ucbi.com | 35 Non - GAAP Reconciliation Tables ucbi.com | 35 $ in thousands, except per share data

 

 

1Q16 2Q16 3Q16 4Q16 1Q17 Return on Tangible Common Equity Return on common equity - GAAP 8.57 % 9.54 % 9.61 % 9.89 % 8.54 % Effect of merger-related and other charges 0.63 0.27 0.73 0.26 0.47 Impairment of deferred tax asset on cancelled nonqualified stock options - - - 0.36 - Release of disproportionate tax effects lodged in OCI - - - - 1.24 Return on common equity - Operating 9.20 9.81 10.34 10.51 10.25 Effect of goodwill and intangibles 1.71 1.75 2.11 1.96 1.85 Return on tangible common equity - Operating 10.91 % 11.56 % 12.45 % 12.47 % 12.10 % Expenses Expenses - GAAP 57,885$ 58,060$ 64,023$ 61,321$ 62,826$ Merger-related and other charges (2,653) (1,176) (3,152) (1,141) (2,054) Expenses - Operating 55,232$ 56,884$ 60,871$ 60,180$ 60,772$ Pre-Tax, Pre-Credit Earnings Pre-Tax Earnings - GAAP 35,873$ 40,655$ 41,627$ 44,837$ 42,002$ Merger-related and other charges 2,653 1,176 3,152 1,141 2,054 Provision for credit losses (200) (300) (300) - 800 Pre-Tax, Pre-Credit Earnings - Operating 38,326$ 41,531$ 44,479$ 45,978$ 44,856$ Efficiency Ratio Efficiency Ratio - GAAP 61.94 % 59.02 % 60.78 % 57.65 % 59.29 % Merger-related and other charges (2.84) (1.20) (2.99) (1.07) (1.94) Efficiency Ratio - Operating 59.10 % 57.82 % 57.79 % 56.58 % 57.35 % ucbi.com | 36 Non - GAAP Reconciliation Tables ucbi.com | 36 $ in thousands, except per share data