Press Release Details

Diluted earnings per share up 52 percent, to 38 cents, from fourth quarter 2015

Excluding merger-related and other non-operating charges, diluted operating EPS up 21 percent, to 40 cents

• Return on assets of 1.03 percent, or 1.10 percent excluding merger-related and other charges
• Loan growth of $196 million from the third quarter, or 12 percent annualized
• Core transaction deposits up $62.4 million from the third quarter, or 4 percent annualized
• Efficiency ratio of 57.7 percent, or 56.6 percent excluding merger-related and other charges

BLAIRSVILLE, Ga., Jan. 25, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced strong fourth quarter results with solid loan growth, effective expense management, sound credit quality and improvement in nearly every other performance measure.  Net income grew to $27.2 million, or 38 cents per diluted share, compared with $18.2 million, or 25 cents per diluted share, for the fourth quarter of 2015.  Net income for the full year of 2016 was $100.7 million, or $1.40 per diluted share.  This compares with $71.6 million, or $1.09 per diluted share, for 2015.

On an operating basis, net income rose to $28.9 million for the fourth quarter of 2016 compared with $23.8 million for the fourth quarter of 2015.  Fourth quarter 2016 operating net income excludes pre-tax merger-related charges of $1.14 million and the associated tax benefit of $432,000, as well as a tax charge of $976,000 related to the cancellation of nonqualified stock options.

Fourth quarter 2015 operating net income excludes $3.11 million in pre-tax merger-related charges and $5.97 million in pre-tax charges for impairment on properties acquired for future expansion.  The tax benefit on the fourth quarter 2015 charges was $3.49 million.  On a per diluted share basis, operating net income was 40 cents for the fourth quarter of 2016 compared with 33 cents for the fourth quarter of 2015.  For the full year of 2016, operating net income was $106.7 million, or $1.48 per diluted share, compared with $83.1 million, or $1.27 per diluted share, for 2015.

At December 31, 2016, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.3 percent; Total Risk-Based of 12.1 percent; Common Equity Tier 1 Risk-Based of 11.3 percent; and, Tier 1 Leverage of 8.5 percent.

"Our fourth quarter results mark a solid ending to an exceptional year for United Community Banks," said Jimmy Tallent, chairman and chief executive officer.  "Our bankers continue to make progress in improving our financial performance.  A year ago we set a goal of achieving a 1.10 percent operating return on assets by the fourth quarter of 2016.  We knew that achieving this goal would not be easy, but we also knew our determined bankers and how they react to a challenge.  I am proud to say that in the fourth quarter, not only did they achieve that goal, but they also pushed our operating return on tangible common equity to 12.5 percent and improved our operating efficiency ratio to 56.6 percent.  I could not be more pleased."  Operating performance measures exclude the charges mentioned above.  Including those charges, return on assets was 1.03 percent, return on common equity was 9.89 percent and the efficiency ratio was 57.7 percent.

"In the fourth quarter we completed all systems conversions for Tidelands Bank, and we have achieved all expected cost savings from that acquisition," Tallent said.  "We are proud that Tidelands is now fully integrated with United Community Bank, operating under our brand in coastal South Carolina.

"Fourth quarter loan production was $747 million," Tallent added.  "Linked-quarter loan growth of $196 million, or 12 percent annualized, was slightly above our 2016 loan growth target of mid-to-upper single-digit.  Our community banks originated $490 million in loans while specialized lending produced $216 million.  United's specialized lending area encompasses commercial real estate, middle market, SBA, asset-based lending, senior living and builder finance."

Fourth quarter net interest revenue totaled $80.9 million, up $1.9 million from the third quarter and up $7.2 million from the fourth quarter of 2015.  The increase from both periods reflects loan growth, and the increase from a year ago also includes net interest revenue from recent acquisitions.

The taxable-equivalent net interest margin of 3.34 percent remained the same as in the third quarter of 2016 and the fourth quarter of 2015.  The effect of rising short-term interest rates and lower wholesale borrowings offset the impact of competitive loan pricing.

No provision for credit losses was required for the fourth quarter.  This compares with a provision recovery of $300,000 in the third quarter, and a provision of $300,000 in the fourth quarter of 2015.  Fourth quarter net charge-offs totaled $1.5 million, compared with $1.4 million in the third quarter and $1.3 million in the fourth quarter of 2015. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were .28 percent of total assets at December 31, 2016, compared with .30 percent at September 30, 2016 and .29 percent at December 31, 2015.

"Our lack of need for a provision for loan losses reflects continued strong credit quality and a low overall level of net charge-offs," Tallent commented.  "Our credit quality indicators remain favorable and our outlook is for positive credit quality and low provision levels through 2017.  We expect to gradually increase provision levels with loan growth during the year, which is expected to slightly decrease our allowance and the related ratio to total loans."

Fourth quarter fee revenue totaled $25.2 million, a decrease of $1.13 million from the third quarter and up $3.95 million from a year ago.  Mortgage fees were up $477,000 from the third quarter, and $3.23 million from a year ago.  Gains from sales of SBA loans were up $549,000 from the third quarter, and up $1.03 million from a year ago due to continued growth in SBA lending.  Offsetting the mortgage and SBA business growth from the third quarter of 2016 were decreases in merchant services and brokerage fees, and in deposit account fees and service charges.  Customer derivative fees were also down from the record level achieved in the third quarter.

"The rise in mortgage fees reflects our strategic investment in additional mortgage lenders where we see opportunities to gain market share and higher spreads on loan sales," Tallent said.  "Also, our SBA lending business remains a top priority.  In the fourth quarter we sold $41 million in loans compared with $32 million in the third quarter and $25 million in the fourth quarter of 2015."

Operating expenses were $61.3 million for the fourth quarter, compared with $64.0 million for the third quarter and $65.5 million for the fourth quarter of 2015.  Included in operating expenses are merger-related and impairment charges of $1.14 million in the fourth quarter, $3.15 million in the third quarter and $9.08 million in the fourth quarter of 2015.  Excluding these charges, fourth quarter operating expenses were $60.2 million compared with $60.9 million for the third quarter, and $56.4 million a year ago.

The decrease in operating expenses from the third quarter is mostly in salaries and employee benefits costs and a decrease in professional fees.  The increase from a year ago reflects the additional operating expenses of Tidelands Bank following its acquisition on July 1, 2016.  United's financial results include operating expenses of acquired companies beginning on their respective acquisition dates.  The benefit of higher revenue and the lower level of fourth quarter expenses compared to the third quarter also improved the operating efficiency ratio to 56.6 percent, compared to 57.8 percent in the third quarter and 59.4 percent a year ago.

Tallent concluded, "I am very proud of our bankers and the exceptional results they achieved in 2016.  They steadily improved financial performance while providing the best in customer service, which is the foundation of our success and the core of everything we do. With our strong earnings momentum, a high-quality balance sheet and strategic investments in our franchise, I look forward with optimism going into 2017."

Conference Call
United will hold a conference call today, Wednesday, January 25, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 47644518.  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 139 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in providing personalized community banking services to individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management.  Respected national research firms consistently recognize United Community Bank for outstanding customer service: In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast. In 2017, for the fourth consecutive year, Forbes 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 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," "tangible book value," "operating return on common equity," "operating return on tangible common equity," "operating return on assets," "operating dividend payout ratio," "operating efficiency ratio," "average tangible equity to average assets," "average tangible common equity to average assets" and "tangible common equity to risk-weighted assets."  These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United's underlying performance trends.  These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.  To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

Safe Harbor
This News Release contains forward-looking statements, as defined by federal securities laws, including statements about United's financial outlook and business environment.  These statements are based on current expectations and are provided to assist in the understanding of future financial performance.  Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements.  For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2015 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors."  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
																					Fourth
		2016																2015			Quarter
	Fourth				Third				Second				First				Fourth				2016-2015
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter				Change
INCOME SUMMARY
Interest revenue	$	87,778			$	85,439			$	81,082			$	80,721			$	79,362
Interest expense		6,853				6,450				6,164				5,769				5,598
Net interest revenue		80,925				78,989				74,918				74,952				73,764			10		%
Provision for credit losses		-				(300	)			(300	)			(200	)			300
Fee revenue		25,233				26,361				23,497				18,606				21,284			19
Total revenue		106,158				105,650				98,715				93,758				94,748			12
Expenses		61,321				64,023				58,060				57,885				65,488			(6	)
Income before income tax expense		44,837				41,627				40,655				35,873				29,260			53
Income tax expense		17,616				15,753				15,389				13,578				11,052			59
Net income		27,221				25,874				25,266				22,295				18,208			50
Preferred dividends		-				-				-				21				25
Net income available to common shareholders	$	27,221			$	25,874			$	25,266			$	22,274			$	18,183			50
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non-   qualified stock options		976				-				-				-				-
Net income available to common   shareholders - operating (1)	$	28,906			$	27,833			$	25,997			$	23,923			$	23,775			22
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	.38			$	.36			$	.35			$	.31			$	.25			52
Diluted net income - operating  (1)		.40				.39				.36				.33				.33			21
Cash dividends declared		.08				.08				.07				.07				.06
Book value		15.06				15.12				14.80				14.35				14.02			7
Tangible book value (3)		12.95				13.00				12.84				12.40				12.06			7
Key performance ratios:
Return on common equity - GAAP (2)(4)		9.89		%		9.61		%		9.54		%		8.57		%		7.02		%
Return on common equity - operating (1)(2)(4)		10.51				10.34				9.81				9.20				9.18
Return on tangible common equity - operating (1)(2)(3)(4)		12.47				12.45				11.56				10.91				10.87
Return on assets - GAAP (4)		1.03				1.00				1.04				.93				.76
Return on assets - operating (1)(4)		1.10				1.08				1.07				1.00				.99
Dividend payout ratio - GAAP		21.05				22.22				20.00				22.58				24.00
Dividend payout ratio - operating (1)		20.00				20.51				19.44				21.21				18.18
Net interest margin (fully taxable equivalent) (4)		3.34				3.34				3.35				3.41				3.34
Efficiency ratio - GAAP		57.65				60.78				59.02				61.94				68.97
Efficiency ratio - operating  (1)		56.58				57.79				57.82				59.10				59.41
Average equity to average assets		10.35				10.38				10.72				10.72				10.68
Average tangible equity to average assets (3)		9.04				8.98				9.43				9.41				9.40
Average tangible common equity to   average assets (3)		9.04				8.98				9.43				9.32				9.29
Tangible common equity to risk-weighted   assets (3)(5)		11.89				12.22				12.87				12.77				12.82
ASSET QUALITY
Nonperforming loans	$	21,539			$	21,572			$	21,348			$	22,419			$	22,653			(5	)
Foreclosed properties		7,949				9,187				6,176				5,163				4,883			63
Total nonperforming assets (NPAs)		29,488				30,759				27,524				27,582				27,536			7
Allowance for loan losses		61,422				62,961				64,253				66,310				68,448			(10	)
Net charge-offs		1,539				1,359				1,730				2,138				1,302			18
Allowance for loan losses to loans		.89		%		.94		%		1.02		%		1.09		%		1.14		%
Net charge-offs to average loans (4)		.09				.08				.11				.14				.09
NPAs to loans and foreclosed properties		.43				.46				.44				.45				.46
NPAs to total assets		.28				.30				.28				.28				.29
AVERAGE BALANCES ($ in millions)
Loans	$	6,814			$	6,675			$	6,151			$	6,004			$	5,975			14
Investment securities		2,690				2,610				2,747				2,718				2,607			3
Earning assets		9,665				9,443				9,037				8,876				8,792			10
Total assets		10,484				10,281				9,809				9,634				9,558			10
Deposits		8,552				8,307				7,897				7,947				8,028			7
Shareholders' equity		1,085				1,067				1,051				1,033				1,021			6
Common shares - basic (thousands)		71,641				71,556				72,202				72,162				72,135			(1	)
Common shares - diluted (thousands)		71,648				71,561				72,207				72,166				72,140			(1	)
AT PERIOD END ($ in millions)
Loans	$	6,921			$	6,725			$	6,287			$	6,106			$	5,995			15
Investment securities		2,762				2,560				2,677				2,757				2,656			4
Total assets		10,709				10,298				9,928				9,781				9,616			11
Deposits		8,638				8,442				7,857				7,960				7,873			10
Shareholders' equity		1,076				1,079				1,060				1,034				1,018			6
Common shares outstanding (thousands)		70,899				70,861				71,122				71,544				71,484			(1	)
(1)  Excludes merger-related charges, a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and fourth quarter 2015 impairment losses on surplus bank property.  (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)  Fourth quarter 2016 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
		For the Twelve
		Months Ended								YTD
		December 31,								2016-2015
(in thousands, except per share data)			2016				2015			Change
INCOME SUMMARY
Interest revenue		$	335,020			$	278,532
Interest expense			25,236				21,109
Net interest revenue			309,784				257,423			20		%
Provision for credit losses			(800	)			3,700
Fee revenue			93,697				72,529			29
Total revenue			404,281				326,252			24
Expenses			241,289				211,238			14
Income before income tax expense			162,992				115,014			42
Income tax expense			62,336				43,436			44
Net income			100,656				71,578			41
Preferred dividends			21				67
Net income available to common shareholders		$	100,635			$	71,511			41
Merger-related and other charges			8,122				17,995
Income tax benefit of merger-related and other charges			(3,074	)			(6,388	)
Impairment of deferred tax asset on cancelled non-   qualified stock options			976				-
Net income available to common   shareholders - operating (1)		$	106,659			$	83,118			28
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	1.40			$	1.09			28
Diluted net income - operating  (1)			1.48				1.27			17
Cash dividends declared			.30				.22
Book value			15.06				14.02			7
Tangible book value (3)			12.95				12.06			7
Key performance ratios:
Return on common equity - GAAP (2)(4)			9.41		%		8.15		%
Return on common equity - operating (1)(2)(4)			9.98				9.48
Return on tangible common equity - operating (1)(2)(3)(4)			11.86				10.24
Return on assets - GAAP (4)			1.00				.85
Return on assets - operating (1)(4)			1.06				.98
Dividend payout ratio - GAAP			21.43				20.18
Dividend payout ratio - operating (1)			20.27				17.32
Net interest margin (fully taxable equivalent) (4)			3.36				3.30
Efficiency ratio - GAAP			59.80				63.96
Efficiency ratio - operating  (1)			57.78				58.51
Average equity to average assets			10.54				10.27
Average tangible equity to average assets (3)			9.21				9.74
Average tangible common equity to   average assets (3)			9.19				9.66
Tangible common equity to risk-weighted   assets (3)(5)			11.89				12.82
ASSET QUALITY
Nonperforming loans		$	21,539			$	22,653			(5	)
Foreclosed properties			7,949				4,883			63
Total nonperforming assets (NPAs)			29,488				27,536			7
Allowance for loan losses			61,422				68,448			(10	)
Net charge-offs			6,766				6,259			8
Allowance for loan losses to loans			.89		%		1.14		%
Net charge-offs to average loans (4)			.11				.12
NPAs to loans and foreclosed properties			.43				.46
NPAs to total assets			.28				.29
AVERAGE BALANCES ($ in millions)
Loans		$	6,413			$	5,298			21
Investment securities			2,691				2,368			14
Earning assets			9,257				7,834			18
Total assets			10,054				8,462			19
Deposits			8,177				7,055			16
Shareholders' equity			1,059				869			22
Common shares - basic (thousands)			71,910				65,488			10
Common shares - diluted (thousands)			71,915				65,492			10
AT PERIOD END ($ in millions)
Loans		$	6,921			$	5,995			15
Investment securities			2,762				2,656			4
Total assets			10,709				9,616			11
Deposits			8,638				7,873			10
Shareholders' equity			1,076				1,018			6
Common shares outstanding (thousands)			70,899				71,484			(1	)
(1)  Excludes merger-related charges, a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and fourth quarter 2015 impairment losses on surplus bank property.  (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)  Fourth quarter 2016 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data)			2016				2015				2014			2013				2012
INCOME SUMMARY
Interest revenue		$	335,020			$	278,532			$	248,432		$	245,840			$	265,977
Interest expense			25,236				21,109				25,551			27,682				37,909
Net interest revenue			309,784				257,423				222,881			218,158				228,068
Provision for credit losses			(800	)			3,700				8,500			65,500				62,500
Fee revenue			93,697				72,529				55,554			56,598				56,112
Total revenue			404,281				326,252				269,935			209,256				221,680
Expenses			241,289				211,238				162,865			174,304				186,774
Income before income tax expense			162,992				115,014				107,070			34,952				34,906
Income tax expense (benefit)			62,336				43,436				39,450			(238,188	)			1,050
Net income			100,656				71,578				67,620			273,140				33,856
Preferred dividends			21				67				439			12,078				12,148
Net income available to common shareholders		$	100,635			$	71,511			$	67,181		$	261,062			$	21,708
Merger-related and other charges			8,122				17,995				-			-				-
Income tax benefit of merger-related and other charges			(3,074	)			(6,388	)			-			-				-
Impairment of deferred tax asset on cancelled non-qualified stock options			976				-				-			-				-
Net income available to common shareholders - operating (1)		$	106,659			$	83,118			$	67,181		$	261,062			$	21,708
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	1.40			$	1.09			$	1.11		$	4.44			$  .38
Diluted net income - operating  (1)			1.48				1.27				1.11			4.44			.38
Cash dividends declared			.30				.22				.11			-				-
Book value			15.06				14.02				12.20			11.30				6.67
Tangible book value (3)			12.95				12.06				12.15			11.26				6.57
Key performance ratios:
Return on common equity - GAAP (2)			9.41		%		8.15		%		9.17	%		46.72		%		5.43	%
Return on common equity - operating (1)(2)			9.98				9.48				9.17			46.72				5.43
Return on tangible common equity - operating (1)(2)(3)			11.86				10.24				9.32			47.35				6.27
Return on assets - GAAP			1.00				.85				.91			3.86				.49
Return on assets - operating (1)			1.06				.98				.91			3.86				.49
Dividend payout ratio - GAAP			21.43				20.18				9.91			-				-
Dividend payout ratio - operating (1)			20.27				17.32				9.91			-				-
Net interest margin (fully taxable equivalent)			3.36				3.30				3.26			3.30				3.51
Efficiency ratio - GAAP			59.80				63.96				58.26			63.14				65.43
Efficiency ratio - operating  (1)			57.78				58.51				58.26			63.14				65.43
Average equity to average assets			10.54				10.27				9.69			10.35				8.47
Average tangible equity to average assets (3)			9.21				9.74				9.67			10.31				8.38
Average tangible common equity to average assets (3)			9.19				9.66				9.60			7.55				5.54
Tangible common equity to risk-weighted assets (3)(4)			11.89				12.82				13.82			13.17				8.26
ASSET QUALITY
Nonperforming loans		$	21,539			$	22,653			$	17,881		$	26,819			$	109,894
Foreclosed properties			7,949				4,883				1,726			4,221				18,264
Total nonperforming assets (NPAs)			29,488				27,536				19,607			31,040				128,158
Allowance for loan losses			61,422				68,448				71,619			76,762				107,137
Net charge-offs			6,766				6,259				13,879			93,710				69,831
Allowance for loan losses to loans			.89		%		1.14		%		1.53	%		1.77		%		2.57	%
Net charge-offs to average loans			.11				.12				.31			2.22				1.69
NPAs to loans and foreclosed properties			.43				.46				.42			.72				3.06
NPAs to total assets			.28				.29				.26			.42				1.88
AVERAGE BALANCES ($ in millions)
Loans		$	6,413			$	5,298			$	4,450		$	4,254			$	4,166
Investment securities			2,691				2,368				2,274			2,190				2,089
Earning assets			9,257				7,834				6,880			6,649				6,547
Total assets			10,054				8,462				7,436			7,074				6,865
Deposits			8,177				7,055				6,228			6,027				5,885
Shareholders' equity			1,059				869				720			732				582
Common shares - basic (thousands)			71,910				65,488				60,588			58,787				57,857
Common shares - diluted (thousands)			71,915				65,492				60,590			58,845				57,857
AT PERIOD END ($ in millions)
Loans		$	6,921			$	5,995			$	4,672		$	4,329			$	4,175
Investment securities			2,762				2,656				2,198			2,312				2,079
Total assets			10,709				9,616				7,558			7,424				6,801
Deposits			8,638				7,873				6,335			6,202				5,952
Shareholders' equity			1,076				1,018				740			796				581
Common shares outstanding (thousands)			70,899				71,484				60,259			59,432				57,741
(1)  Excludes merger-related charges, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options  and 2015 impairment losses on surplus bank property.  (2)  Net income 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)  2016 ratio is preliminary.

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2016																2015
	Fourth				Third				Second				First				Fourth
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter
Expense reconciliation
Expenses (GAAP)	$	61,321			$	64,023			$	58,060			$	57,885			$	65,488
Merger-related and other charges		(1,141	)			(3,152	)			(1,176	)			(2,653	)			(9,078	)
Expenses - operating	$	60,180			$	60,871			$	56,884			$	55,232			$	56,410
Net income reconciliation
Net income (GAAP)	$	27,221			$	25,874			$	25,266			$	22,295			$	18,208
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income - operating	$	28,906			$	27,833			$	25,997			$	23,944			$	23,800
Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)	$	27,221			$	25,874			$	25,266			$	22,274			$	18,183
Merger-related and other charges		1,141				3,152				1,176				2,653				9,078
Income tax benefit of merger-related and other charges		(432	)			(1,193	)			(445	)			(1,004	)			(3,486	)
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income available to common shareholders - operating	$	28,906			$	27,833			$	25,997			$	23,923			$	23,775
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$  .38			$	.36			$	.35			$	.31			$	.25
Merger-related and other charges		.01				.03				.01				.02				.08
Impairment of deferred tax asset on cancelled non-qualified stock options		.01				-				-				-				-
Diluted income per common share - operating	$	.40			$	.39			$	.36			$	.33			$	.33
Book value per common share reconciliation
Book value per common share (GAAP)	$	15.06			$	15.12			$	14.80			$	14.35			$	14.02
Effect of goodwill and other intangibles		(2.11	)			(2.12	)			(1.96	)			(1.95	)			(1.96	)
Tangible book value per common share	$	12.95			$	13.00			$	12.84			$	12.40			$	12.06
Return on tangible common equity reconciliation
Return on common equity (GAAP)		9.89		%		9.61		%		9.54		%		8.57		%		7.02		%
Merger-related and other charges		.26				.73				.27				.63				2.16
Impairment of deferred tax asset on cancelled non-qualified stock options		.36				-				-				-				-
Return on common equity - operating		10.51				10.34				9.81				9.20				9.18
Effect of goodwill and other intangibles		1.96				2.11				1.75				1.71				1.69
Return on tangible common equity - operating		12.47		%		12.45		%		11.56		%		10.91		%		10.87		%
Return on assets reconciliation
Return on assets (GAAP)		1.03		%		1.00		%		1.04		%		.93		%		.76		%
Merger-related and other charges		.03				.08				.03				.07				.23
Impairment of deferred tax asset on cancelled non-qualified stock options		.04				-				-				-				-
Return on assets - operating		1.10		%		1.08		%		1.07		%		1.00		%		.99		%
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		21.05		%		22.22		%		20.00		%		22.58		%		24.00		%
Merger-related and other charges		(.54	)			(1.71	)			(.56	)			(1.37	)			(5.82	)
Impairment of deferred tax asset on cancelled non-qualified stock options		(.51	)			-				-				-				-
Dividend payout ratio - operating		20.00		%		20.51		%		19.44		%		21.21		%		18.18		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		57.65		%		60.78		%		59.02		%		61.94		%		68.97		%
Merger-related and other charges		(1.07	)			(2.99	)			(1.20	)			(2.84	)			(9.56	)
Efficiency ratio - operating		56.58		%		57.79		%		57.82		%		59.10		%		59.41		%
Average equity to assets reconciliation
Equity to assets (GAAP)		10.35		%		10.38		%		10.72		%		10.72		%		10.68		%
Effect of goodwill and other intangibles		(1.31	)			(1.40	)			(1.29	)			(1.31	)			(1.28	)
Tangible equity to assets		9.04				8.98				9.43				9.41				9.40
Effect of preferred equity		-				-				-				(.09	)			(.11	)
Tangible common equity to assets		9.04		%		8.98		%		9.43		%		9.32		%		9.29		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory)		11.27		%		11.04		%		11.44		%		11.32		%		11.45		%
Effect of other comprehensive income		(.34	)			-				(.06	)			(.25	)			(.38	)
Effect of deferred tax limitation		1.27				1.50				1.63				1.85				2.05
Effect of trust preferred		(.25	)			(.26	)			(.08	)			(.08	)			(.08	)
Effect of preferred equity		-				-				-				-				(.15	)
Basel III intangibles transition adjustment		(.06	)			(.06	)			(.06	)			(.07	)			(.10	)
Basel III disallowed investments		-				-				-				-				.03
Tangible common equity to risk-weighted assets		11.89		%		12.22		%		12.87		%		12.77		%		12.82		%
(1)  Fourth quarter 2016 ratios are preliminary.

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
	For the Twelve Months Ended December 31 ,
(in thousands, except per share data)		2016				2015				2014				2013				2012
Expense reconciliation
Expenses (GAAP)	$	241,289			$	211,238			$	162,865			$	174,304			$	186,774
Merger-related and other charges		(8,122	)			(17,995	)			-				-				-
Expenses - operating	$	233,167			$	193,243			$	162,865			$	174,304			$	186,774
Net income reconciliation
Net income (GAAP)	$	100,656			$	71,578			$	67,620			$	273,140			$	33,856
Merger-related and other charges		8,122				17,995				-				-				-
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income - operating	$	106,680			$	83,185			$	67,620			$	273,140			$	33,856
Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)	$	100,635			$	71,511			$	67,181			$	261,062			$	21,708
Merger-related and other charges		8,122				17,995				-				-				-
Income tax benefit of merger-related and other charges		(3,074	)			(6,388	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		976				-				-				-				-
Net income available to common shareholders - operating	$	106,659			$	83,118			$	67,181			$	261,062			$	21,708
Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	1.40			$	1.09			$	1.11			$	4.44			$	.38
Merger-related and other charges		.07				.18				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.01				-				-				-				-
Diluted income per common share - operating	$	1.48			$	1.27			$	1.11			$	4.44			$	.38
Book value per common share reconciliation
Book value per common share (GAAP)	$	15.06			$	14.02			$	12.20			$	11.30			$	6.67
Effect of goodwill and other intangibles		(2.11	)			(1.96	)			(.05	)			(.04	)			(.10	)
Tangible book value per common share	$	12.95			$	12.06			$	12.15			$	11.26			$	6.57
Return on tangible common equity reconciliation
Return on common equity (GAAP)		9.41		%		8.15		%		9.17		%		46.72		%		5.43		%
Merger-related and other charges		.48				1.33				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.09				-				-				-				-
Return on common equity - operating		9.98				9.48				9.17				46.72				5.43
Effect of goodwill and other intangibles		1.88				.76				.15				.63				.84
Return on tangible common equity - operating		11.86		%		10.24		%		9.32		%		47.35		%		6.27		%
Return on assets reconciliation
Return on assets (GAAP)		1.00		%		.85		%		.91		%		3.86		%		.49		%
Merger-related and other charges		.05				.13				-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		.01
Return on assets - operating		1.06		%		.98		%		.91		%		3.86		%		.49		%
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		21.43		%		20.18		%		9.91		%		-		%		-		%
Merger-related and other charges		(1.02	)			(2.86	)			-				-				-
Impairment of deferred tax asset on cancelled non-qualified stock options		(.14	)			-				-				-				-
Dividend payout ratio - operating		20.27		%		17.32		%		9.91		%		-		%		-		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		59.80		%		63.96		%		58.26		%		63.14		%		65.43		%
Merger-related and other charges		(2.02	)			(5.45	)			-				-				-
Efficiency ratio - operating		57.78		%		58.51		%		58.26		%		63.14		%		65.43		%
Average equity to assets reconciliation
Equity to assets (GAAP)		10.54		%		10.27		%		9.69		%		10.35		%		8.47		%
Effect of goodwill and other intangibles		(1.33	)			(.53	)			(.02	)			(.04	)			(.09	)
Tangible equity to assets		9.21				9.74				9.67				10.31				8.38
Effect of preferred equity		(.02	)			(.08	)			(.07	)			(2.76	)			(2.84	)
Tangible common equity to assets		9.19		%		9.66		%		9.60		%		7.55		%		5.54		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory)		11.27		%		11.45		%		12.06		%		12.74		%		14.16		%
Effect of other comprehensive income		(.34	)			(.38	)			(.35	)			(.39	)			(.51	)
Effect of deferred tax limitation		1.27				2.05				3.11				4.26				-
Effect of trust preferred		(.25	)			(.08	)			(1.00	)			(1.04	)			(1.15	)
Effect of preferred equity		-				(.15	)			-				(2.39	)			(4.24	)
Basel III intangibles transition adjustment		(.06	)			(.10	)			-				-				-
Basel III disallowed investments		-				.03				-				-				-
Tangible common equity to risk-weighted assets		11.89		%		12.82		%		13.82		%		13.18		%		8.26		%
(1)  Fourth quarter 2016 ratios are preliminary.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
			2016												2015
		Fourth			Third			Second			First			Fourth
(in millions)		Quarter			Quarter (1)			Quarter (1)			Quarter (1)			Quarter (1)
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,650		$	1,587		$	1,527		$	1,509		$	1,571
Income producing commercial RE			1,282			1,277			1,101			1,071			1,021
Commercial & industrial			1,070			994			925			854			785
Commercial construction			634			567			565			535			518
Total commercial			4,636			4,425			4,118			3,969			3,895
Residential mortgage			857			814			784			774			764
Home equity lines of credit			655			693			616			597			589
Residential construction			190			200			170			167			176
Consumer installment			583			593			599			599			571
Total loans		$	6,921		$	6,725		$	6,287		$	6,106		$	5,995
LOANS BY MARKET
North Georgia		$	1,097		$	1,110		$	1,097		$	1,097		$	1,125
Atlanta MSA			1,399			1,332			1,314			1,257			1,259
North Carolina			545			548			543			543			549
Coastal Georgia			581			565			541			543			537
Gainesville MSA			248			236			240			248			254
East Tennessee			504			506			509			495			504
South Carolina			1,233			1,199			862			821			819
Specialized Lending			855			763			706			628			492
Indirect auto			459			466			475			474			456
Total loans		$	6,921		$	6,725		$	6,287		$	6,106		$	5,995
(1) Certain prior period amounts have been reclassified to conform to the current presentation.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
			2016						2015		Linked Quarter Change				Year over Year Change
		Fourth			Third			Fourth
(in millions)		Quarter			Quarter (1)			Quarter (1)
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,650		$	1,587		$	1,571		$	63			$	79
Income producing commercial RE			1,282			1,277			1,021			5				261
Commercial & industrial			1,070			994			785			76				285
Commercial construction			634			567			518			67				116
Total commercial			4,636			4,425			3,895			211				741
Residential mortgage			857			814			764			43				93
Home equity lines of credit			655			693			589			(38	)			66
Residential construction			190			200			176			(10	)			14
Consumer installment			583			593			571			(10	)			12
Total loans		$	6,921		$	6,725		$	5,995			196				926
LOANS BY MARKET
North Georgia		$	1,097		$	1,110		$	1,125			(13	)			(28	)
Atlanta MSA			1,399			1,332			1,259			67				140
North Carolina			545			548			549			(3	)			(4	)
Coastal Georgia			581			565			537			16				44
Gainesville MSA			248			236			254			12				(6	)
East Tennessee			504			506			504			(2	)			-
South Carolina			1,233			1,199			819			34				414
Specialized Lending			855			763			492			92				363
Indirect auto			459			466			456			(7	)			3
Total loans		$	6,921		$	6,725		$	5,995			196				926
(1) Certain prior period amounts have been reclassified to conform to the current presentation.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)			2016		2015 (1)			2014 (1)			2013 (1)			2012 (1)
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,650		$	1,571		$	1,257		$	1,238		$	1,254
Income producing commercial RE			1,282			1,021			767			807			891
Commercial & industrial			1,070			785			710			471			456
Commercial construction			634			518			364			336			407
Total commercial			4,636			3,895			3,098			2,852			3,008
Residential mortgage			857			764			614			604			517
Home equity lines of credit			655			589			456			430			375
Residential construction			190			176			131			136			122
Consumer installment			583			571			373			307			153
Total loans		$	6,921		$	5,995		$	4,672		$	4,329		$	4,175
LOANS BY MARKET
North Georgia		$	1,097		$	1,125		$	1,163		$	1,240		$	1,364
Atlanta MSA			1,399			1,259			1,243			1,235			1,204
North Carolina			545			549			553			572			579
Coastal Georgia			581			537			456			423			400
Gainesville MSA			248			254			257			255			261
East Tennessee			504			504			280			280			283
South Carolina			1,233			819			30			4			-
Specialized Lending			855			492			421			124			46
Indirect auto			459			456			269			196			38
Total loans		$	6,921		$	5,995		$	4,672		$	4,329		$	4,175
(1) Certain prior period amounts have been reclassified to conform to the current presentation.

 

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

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		Third Quarter 2016 (2)
		Nonperforming					Foreclosed					Total
(in thousands)		Loans					Properties					NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	7,693				$	3,188				$	10,881
Income producing CRE			2,422					765					3,187
Commercial & industrial			1,079					-					1,079
Commercial construction			1,977					1,274					3,251
Total commercial			13,171					5,227					18,398
Residential mortgage			5,440					1,211					6,651
Home equity lines of credit			1,194					514					1,708
Residential construction			369					2,235					2,604
Consumer installment			1,398					-					1,398
Total NPAs		$	21,572				$	9,187				$	30,759
NONPERFORMING ASSETS BY MARKET
North Georgia		$	5,356				$	653				$	6,009
Atlanta MSA			979					1,530					2,509
North Carolina			5,216					543					5,759
Coastal Georgia			1,606					47					1,653
Gainesville MSA			222					-					222
East Tennessee			3,281					160					3,441
South Carolina			2,015					6,254					8,269
Specialized Lending			1,597					-					1,597
Indirect auto			1,300					-					1,300
Total NPAs		$	21,572				$	9,187				$	30,759
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	21,348				$	6,176				$	27,524
Acquisitions			-					7,495					7,495
Loans placed on non-accrual			6,680					-					6,680
Payments received			(3,938		)			-					(3,938		)
Loan charge-offs			(1,236		)			-					(1,236		)
Foreclosures			(1,282		)			2,335					1,053
Capitalized costs			-					3					3
Property sales			-					(6,553		)			(6,553		)
Write downs			-					(53		)			(53		)
Net gains (losses) on sales			-					(216		)			(216		)
Ending Balance		$	21,572				$	9,187				$	30,759
(1)  Annualized.  (2) Certain prior period amounts have been reclassified to conform to the current presentation.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		Second Quarter 2016 (2)
		Nonperforming					Foreclosed					Total
(in thousands)		Loans					Properties					NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	8,218				$	3,096				$	11,314
Income producing CRE			2,511					1,554					4,065
Commercial & industrial			949					-					949
Commercial construction			1,398					-					1,398
Total commercial			13,076					4,650					17,726
Residential mortgage			5,636					1,160					6,796
Home equity lines of credit			1,308					83					1,391
Residential construction			379					283					662
Consumer installment			949					-					949
Total NPAs		$	21,348				$	6,176				$	27,524
NONPERFORMING ASSETS BY MARKET
North Georgia		$	6,219				$	1,086				$	7,305
Atlanta MSA			1,140					2,041					3,181
North Carolina			4,762					224					4,986
Coastal Georgia			1,186					168					1,354
Gainesville MSA			234					-					234
East Tennessee			3,616					247					3,863
South Carolina			1,271					2,410					3,681
Specialized Lending			2,108					-					2,108
Indirect auto			812					-					812
Total NPAs		$	21,348				$	6,176				$	27,524
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	22,419				$	5,163				$	27,582
Acquisitions			-					(497		)			(497		)
Loans placed on non-accrual			6,786					-					6,786
Payments received			(4,201		)			-					(4,201		)
Loan charge-offs			(1,803		)			-					(1,803		)
Foreclosures			(1,853		)			2,722					869
Capitalized costs			-					98					98
Property sales			-					(1,424		)			(1,424		)
Write downs			-					(73		)			(73		)
Net gains (losses) on sales			-					187					187
Ending Balance		$	21,348				$	6,176				$	27,524
(1)  Annualized.  (2) Certain prior period amounts have been reclassified to conform to the current presentation.

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		Fourth Quarter 2016								Third Quarter 2016 (2)								Second Quarter 2016 (2)
							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		$	1				-	%		$	46				.01	%		$	800				.21	%
Income producing CRE			527				.16				70				.02				81				.03
Commercial & industrial			(201		)		(.08)				453				.18				(392		)		(.18)
Commercial construction			241				.16				(194		)		(.13)				(196		)		(.14)
Total commercial			568				.05				375				.03				293				.03
Residential mortgage			322				.15				(47		)		(.02)				489				.25
Home equity lines of credit			151				.09				267				.16				253				.17
Residential construction			(16		)		(.03)				242				.51				210				.51
Consumer installment			514				.35				522				.34				485				.33
Total		$	1,539				.09			$	1,359				.08			$	1,730				.11
NET CHARGE-OFFS BY MARKET
North Georgia		$	575				.21	%		$	68				.02	%		$	428				.16	%
Atlanta MSA			12				-				398				.12				1				-
North Carolina			714				.52				329				.24				575				.43
Coastal Georgia			118				.08				432				.31				177				.13
Gainesville MSA			(32		)		(.05)				15				.03				(87		)		(.14)
East Tennessee			(139		)		(.11)				(69		)		(.05)				346				.28
South Carolina			(2		)		-				(66		)		(.02)				49				.02
Specialized Lending			(21		)		(.01)				69				.04				(18		)		(.01)
Indirect auto			314				.27				183				.15				259				.22
Total		$	1,539				.09			$	1,359				.08			$	1,730				.11
(1)  Annualized.  (2) Certain prior period amounts have been reclassified to conform to the current presentation.

 

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
		Three Months Ended						Twelve Months Ended
		December 31 ,						December 31,
(in thousands, except per share data)			2016			2015			2016				2015
Interest revenue:
Loans, including fees		$	71,494		$	63,442		$	268,382			$	223,256
Investment securities, including tax exempt of $165, $189, $614 and $705			15,988			14,952			64,027				51,848
Deposits in banks and short-term investments			296			968			2,611				3,428
Total interest revenue			87,778			79,362			335,020				278,532
Interest expense:
Deposits:
NOW			522			426			1,903				1,505
Money market			1,321			1,006			4,982				3,466
Savings			33			27			135				98
Time			1,084			922			3,136				3,756
Total deposit interest expense			2,960			2,381			10,156				8,825
Short-term borrowings			121			85			399				364
Federal Home Loan Bank advances			945			436			3,676				1,743
Long-term debt			2,827			2,696			11,005				10,177
Total interest expense			6,853			5,598			25,236				21,109
Net interest revenue			80,925			73,764			309,784				257,423
Provision for credit losses			-			300			(800	)			3,700
Net interest revenue after provision for credit losses			80,925			73,464			310,584				253,723
Fee revenue:
Service charges and fees			10,653			11,500			42,113				36,825
Mortgage loan and other related fees			6,516			3,290			20,292				13,592
Brokerage fees			911			1,058			4,280				5,041
Gains from sales of government guaranteed loans			3,028			1,995			9,545				6,276
Securities gains, net			60			378			982				2,255
Loss from prepayment of debt			-			-			-				(1,294	)
Other			4,065			3,063			16,485				9,834
Total fee revenue			25,233			21,284			93,697				72,529
Total revenue			106,158			94,748			404,281				326,252
Operating expenses:
Salaries and employee benefits			35,677			32,939			138,789				116,688
Communications and equipment			4,753			4,735			18,355				15,273
Occupancy			5,210			4,666			19,603				15,372
Advertising and public relations			1,151			978			4,426				3,667
Postage, printing and supplies			1,353			1,293			5,382				4,273
Professional fees			2,773			3,331			11,822				10,175
FDIC assessments and other regulatory charges			1,413			1,463			5,866				5,106
Amortization of intangibles			1,066			1,041			4,182				2,444
Merger-related and other charges			1,141			9,078			8,122				17,995
Other			6,784			5,964			24,742				20,245
Total operating expenses			61,321			65,488			241,289				211,238
Net income before income taxes			44,837			29,260			162,992				115,014
Income tax expense			17,616			11,052			62,336				43,436
Net income			27,221			18,208			100,656				71,578
Preferred stock dividends and discount accretion			-			25			21				67
Net income available to common shareholders		$	27,221		$	18,183		$	100,635			$	71,511
Earnings per common share:
Basic		$  .38			$  .25			$	1.40			$	1.09
Diluted		.38			.25				1.40				1.09
Weighted average common shares outstanding:
Basic			71,641			72,135			71,910				65,488
Diluted			71,648			72,440			71,915				65,492

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
		December 31,				December 31,
(in thousands, except share and per share data)			2016				2015
ASSETS
Cash and due from banks		$	99,489			$	86,912
Interest-bearing deposits in banks			117,859				153,451
Cash and cash equivalents			217,348				240,363
Securities available for sale			2,432,438				2,291,511
Securities held to maturity (fair value $333,170 and $371,658)			329,843				364,696
Mortgage loans held for sale (includes $27,891 and $0 at fair value)			29,878				24,231
Loans, net of unearned income			6,920,636				5,995,441
Less allowance for loan losses			(61,422	)			(68,448	)
Loans, net			6,859,214				5,926,993
Premises and equipment, net			189,938				178,165
Bank owned life insurance			143,543				105,493
Accrued interest receivable			28,018				25,786
Net deferred tax asset			154,336				197,613
Derivative financial instruments			23,688				20,082
Goodwill and other intangible assets			156,222				147,420
Other assets			144,189				94,075
Total assets		$	10,708,655			$	9,616,428
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand		$	2,637,004			$	2,204,755
NOW			1,989,763				1,975,884
Money market			1,846,440				1,599,637
Savings			549,713				471,129
Time			1,287,142				1,282,803
Brokered			327,496				338,985
Total deposits			8,637,558				7,873,193
Short-term borrowings			5,000				16,640
Federal Home Loan Bank advances			709,209				430,125
Long-term debt			175,078				163,836
Derivative financial instruments			27,648				28,825
Accrued expenses and other liabilities			78,427				85,524
Total liabilities			9,632,920				8,598,143
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H; $1,000 stated value; 0 and 9,992 shares issued and outstanding			-				9,992
Common stock, $1 par value; 150,000,000 shares authorized;
70,899,114 and 66,198,477 shares issued and outstanding			70,899				66,198
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
0 and 5,285,516 shares issued and outstanding			-				5,286
Common stock issuable; 519,874 and 458,953 shares			7,327				6,779
Capital surplus			1,275,849				1,286,361
Accumulated deficit			(251,857	)			(330,879	)
Accumulated other comprehensive loss			(26,483	)			(25,452	)
Total shareholders' equity			1,075,735				1,018,285
Total liabilities and shareholders' equity		$	10,708,655			$	9,616,428

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
						2016									2015
	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)	$	6,814,114			$	71,522	4.18	%		$	5,975,491			$	63,509		4.22	%
Taxable securities (3)		2,664,395				15,823	2.38				2,575,846				14,763		2.29
Tax-exempt securities (FTE) (1)(3)		25,735				270	4.20				30,748				309		4.02
Federal funds sold and other interest-earning assets		160,391				430	1.07				210,341				1,065		2.03
Total interest-earning assets (FTE)		9,664,635				88,045	3.63				8,792,426				79,646		3.60
Non-interest-earning assets:
Allowance for loan losses		(62,767	)								(69,743	)
Cash and due from banks		101,006									88,057
Premises and equipment		189,719									192,040
Other assets (3)		591,491									554,974
Total assets	$	10,484,084								$	9,557,754
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,920,124				522	.11			$	1,865,305				426		.09
Money market		2,058,589				1,321	.26				1,897,364				1,006		.21
Savings		544,490				33	.02				465,993				27		.02
Time		1,317,794				813	.25				1,317,770				1,007		.30
Brokered time deposits		103,577				271	1.04				258,698				(85	)	(.13)
Total interest-bearing deposits		5,944,574		-		2,960	.20				5,805,130		-		2,381		.16
Federal funds purchased and other borrowings		51,224				121	.94				40,148				85		.84
Federal Home Loan Bank advances		476,698				945	.79				191,484				436		.90
Long-term debt		175,018				2,827	6.43				165,620				2,696		6.46
Total borrowed funds		702,940				3,893	2.20				397,252				3,217		3.21
Total interest-bearing liabilities		6,647,514				6,853	.41				6,202,382				5,598		.36
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,607,878									2,223,011
Other liabilities		143,609									111,757
Total liabilities		9,399,001									8,537,150
Shareholders' equity		1,085,083									1,020,604
Total liabilities and shareholders' equity	$	10,484,084								$	9,557,754
Net interest revenue (FTE)					$	81,192								$	74,048
Net interest-rate spread (FTE)							3.22	%									3.24	%
Net interest margin (FTE) (4)							3.34	%									3.34	%
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized gains of $18.6 million in 2016 and $7.45 million in 2015 are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
						2016										2015
	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)	$	6,412,740			$	268,478		4.19	%		$	5,297,687			$	223,713		4.22	%
Taxable securities (3)		2,665,051				63,413		2.38				2,342,533				51,143		2.18
Tax-exempt securities (FTE) (1)(3)		26,244				1,005		3.83				25,439				1,154		4.54
Federal funds sold and other interest-earning assets		152,722				3,149		2.06				168,494				3,799		2.25
Total interest-earning assets (FTE)		9,256,757				336,045		3.63				7,834,153				279,809		3.57
Non-interest-earning assets:
Allowance for loan losses		(65,294	)									(71,001	)
Cash and due from banks		95,613										81,244
Premises and equipment		187,698										174,835
Other assets (3)		579,051										442,878
Total assets	$	10,053,825									$	8,462,109
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,826,729				1,903		.10			$	1,563,911				1,505		.10
Money market		1,941,288				4,982		.26				1,678,765				3,466		.21
Savings		515,179				135		.03				372,414				98		.03
Time		1,289,876				3,138		.24				1,269,360				4,823		.38
Brokered time deposits		171,420				(2	)	.00				269,162				(1,067	)	(.40)
Total interest-bearing deposits		5,744,492				10,156		.18				5,153,612				8,825		.17
Federal funds purchased and other borrowings		34,906				399		1.14				49,301				364		.74
Federal Home Loan Bank advances		499,026				3,676		.74				250,404				1,743		.70
Long-term debt		170,479				11,005		6.46				139,979				10,177		7.27
Total borrowed funds		704,411				15,080		2.14				439,684				12,284		2.79
Total interest-bearing liabilities		6,448,903				25,236		.39				5,593,296				21,109		.38
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,432,846										1,901,521
Other liabilities		112,774										97,890
Total liabilities		8,994,523										7,592,707
Shareholders' equity		1,059,302										869,402
Total liabilities and shareholders' equity	$	10,053,825									$	8,462,109
Net interest revenue (FTE)					$	310,809									$	258,700
Net interest-rate spread (FTE)								3.24	%									3.19	%
Net interest margin (FTE) (4)								3.36	%									3.30	%
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized gains of $16.0 million in 2016 and $11.4 million in 2015 are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

Source: United Community Banks, Inc.

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