United Community Banks, Inc. Announces Fourth Quarter Results
Other key banking metrics were strong. The fourth quarter saw continued net interest margin expansion and 8% annualized loan growth, the strongest growth quarter in 2018. Deposit growth reflected the strength of United’s community banking franchise – total customer deposits increased
“The fourth quarter was a strong finish to an outstanding year,” said
2018 Highlights:
- 2018 earnings per diluted share was
$2.07 , a 125% increase over 2017, which included the impact of tax reform- Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was
$2.14 compared to$1.63 in 2017, an increase of 31%
- Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was
- Return on average assets was 1.35% in 2018, an increase of 73 basis points from 2017
- Excluding merger-related and other charges and the 2017 impact of tax reform, return on average assets was 1.40%, an increase of 31 basis points from 2017
- Efficiency ratio of 57.31% in 2018 improved 264 basis points as compared to 2017
- Excluding merger-related and other charges, efficiency ratio of 55.94% improved 73 basis points as compared to 2017
- End of period loans grew
$647 million in 2018, up 8% overDecember 31, 2017 - Common Equity Tier 1 ratio was 12.2% at
December 31, 2018 , compared to 12.0% atDecember 31, 2017 - Declared
$0.58 per share in common dividends in 2018, up 53% over 2017 - Completed the acquisition of
Navitas Credit Corporation onFebruary 1, 2018 - Issued
$100 million in subordinated debt in the first quarter and redeemed$7.4 million in high rate Trust Preferred securities in the fourth quarter - Completed our CEO transition plan, elevating
H. Lynn Harton into the role asJimmy Tallent retired into the Executive Chairman position - Added two new Board members,
Jennifer Mann andLance F. Drummond , adding significant experience and expertise to our oversight function
Fourth Quarter 2018 Financial Highlights:
- Return on assets of 1.43%, or 1.45% excluding merger-related and other charges
- Return on common equity of 12.1% or return on tangible common equity of 15.9%, which excludes merger-related and other charges
- Loan growth, excluding planned runoff of the indirect portfolio, of 10% on an annualized basis
- Loan production of
$868 million , as compared to$644 million in the fourth quarter of 2017 - Expansion of the net interest margin to 3.97%, up two basis points from the third quarter of 2018 and up 34 basis points from a year ago
- Efficiency ratio of 56.73%, or 55.83% excluding merger-related and other charges
- Net charge offs of nine basis points, consistent with last quarter’s result of seven basis points
- Nonperforming assets of 0.20% of total assets, compared to 0.19% at
September 30, 2018 and 0.23% atDecember 31, 2017
Conference Call
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||||||||||||
Fourth |
For the Twelve | |||||||||||||||||||||||||||||||||||
2018 |
2017 | Quarter |
Months Ended | YTD | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | 2018-2017 |
December 31, | 2018-2017 | |||||||||||||||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | Change |
2018 | 2017 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 133,854 | $ | 128,721 | $ | 122,215 | $ | 115,290 | $ | 106,757 | $ | 500,080 | $ | 389,720 | ||||||||||||||||||||||
Interest expense | 18,975 | 16,611 | 13,739 | 12,005 | 9,249 | 61,330 | 33,735 | |||||||||||||||||||||||||||||
Net interest revenue | 114,879 | 112,110 | 108,476 | 103,285 | 97,508 | 18 | % | 438,750 | 355,985 | 23 | % | |||||||||||||||||||||||||
Provision for credit losses | 2,100 | 1,800 | 1,800 | 3,800 | 1,200 | 9,500 | 3,800 | |||||||||||||||||||||||||||||
Noninterest income | 23,045 | 24,180 | 23,340 | 22,396 | 21,928 | 5 | 92,961 | 88,260 | 5 | |||||||||||||||||||||||||||
Total revenue | 135,824 | 134,490 | 130,016 | 121,881 | 118,236 | 15 | 522,211 | 440,445 | 19 | |||||||||||||||||||||||||||
Expenses | 78,242 | 77,718 | 76,850 | 73,475 | 75,882 | 3 | 306,285 | 267,611 | 14 | |||||||||||||||||||||||||||
Income before income tax expense | 57,582 | 56,772 | 53,166 | 48,406 | 42,354 | 36 | 215,926 | 172,834 | 25 | |||||||||||||||||||||||||||
Income tax expense | 12,445 | 13,090 | 13,532 | 10,748 | 54,270 | 49,815 | 105,013 | |||||||||||||||||||||||||||||
Net income (loss) | 45,137 | 43,682 | 39,634 | 37,658 | (11,916 | ) | 166,111 | 67,821 | ||||||||||||||||||||||||||||
Merger-related and other charges | 1,234 | 592 | 2,873 | 2,646 | 7,358 | 7,345 | 14,662 | |||||||||||||||||||||||||||||
Income tax benefit of merger-related and other charges | (604 | ) | (141 | ) | (121 | ) | (628 | ) | (1,165 | ) | (1,494 | ) | (3,745 | ) | ||||||||||||||||||||||
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act | - | - | - | - | 38,199 | - | 38,199 | |||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | 3,400 | |||||||||||||||||||||||||||||
Net income - operating (1) | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | $ | 32,476 | 41 | $ | 171,962 | $ | 120,337 | 43 | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted net income (loss) - GAAP | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | $ | (0.16 | ) | $ | 2.07 | $ | 0.92 | |||||||||||||||||||||
Diluted net income - operating (1) | 0.57 | 0.55 | 0.53 | 0.50 | 0.42 | 36 | 2.14 | 1.63 | 31 | |||||||||||||||||||||||||||
Cash dividends declared | 0.16 | 0.15 | 0.15 | 0.12 | 0.10 | 60 | 0.58 | 0.38 | 53 | |||||||||||||||||||||||||||
Book value | 18.24 | 17.56 | 17.29 | 17.02 | 16.67 | 9 | 18.24 | 16.67 | 9 | |||||||||||||||||||||||||||
Tangible book value (3) | 14.24 | 13.54 | 13.25 | 12.96 | 13.65 | 4 | 14.24 | 13.65 | 4 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | (3.57 | ) | % | 11.60 | % | 5.67 | % | |||||||||||||||||||||
Return on common equity - operating (1)(2)(4) | 12.25 | 12.09 | 11.97 | 11.71 | 9.73 | 12.01 | 10.07 | |||||||||||||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 15.88 | 15.81 | 15.79 | 15.26 | 11.93 | 15.69 | 12.02 | |||||||||||||||||||||||||||||
Return on assets - GAAP (4) | 1.43 | 1.41 | 1.30 | 1.26 | (0.40 | ) | 1.35 | 0.62 | ||||||||||||||||||||||||||||
Return on assets - operating (1)(4) | 1.45 | 1.42 | 1.39 | 1.33 | 1.10 | 1.40 | 1.09 | |||||||||||||||||||||||||||||
Dividend payout ratio - GAAP | 28.57 | 27.78 | 30.61 | 25.53 | (62.50 | ) | 28.02 | 41.30 | ||||||||||||||||||||||||||||
Dividend payout ratio - operating (1) | 28.07 | 27.27 | 28.30 | 24.00 | 23.81 | 27.10 | 23.31 | |||||||||||||||||||||||||||||
Net interest margin (fully taxable equivalent) (4) | 3.97 | 3.95 | 3.90 | 3.80 | 3.63 | 3.91 | 3.52 | |||||||||||||||||||||||||||||
Efficiency ratio - GAAP | 56.73 | 56.82 | 57.94 | 57.83 | 63.03 | 57.31 | 59.95 | |||||||||||||||||||||||||||||
Efficiency ratio - operating (1) | 55.83 | 56.39 | 55.77 | 55.75 | 56.92 | 55.94 | 56.67 | |||||||||||||||||||||||||||||
Average equity to average assets | 11.35 | 11.33 | 11.21 | 11.03 | 11.21 | 11.24 | 10.71 | |||||||||||||||||||||||||||||
Average tangible equity to average assets (3) | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | |||||||||||||||||||||||||||||
Average tangible common equity to average assets (3) | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets (3)(5) | 11.99 | 11.61 | 11.36 | 11.19 | 12.05 | 11.99 | 12.05 | |||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 23,778 | $ | 22,530 | $ | 21,817 | $ | 26,240 | $ | 23,658 | 1 | $ | 23,778 | $ | 23,658 | 1 | ||||||||||||||||||||
Foreclosed properties | 1,305 | 1,336 | 2,597 | 2,714 | 3,234 | (60 | ) | 1,305 | 3,234 | (60 | ) | |||||||||||||||||||||||||
Total nonperforming assets (NPAs) | 25,083 | 23,866 | 24,414 | 28,954 | 26,892 | (7 | ) | 25,083 | 26,892 | (7 | ) | |||||||||||||||||||||||||
Allowance for loan losses | 61,203 | 60,940 | 61,071 | 61,085 | 58,914 | 4 | 61,203 | 58,914 | 4 | |||||||||||||||||||||||||||
Net charge-offs | 1,787 | 1,466 | 1,359 | 1,501 | 1,061 | 68 | 6,113 | 5,998 | 2 | |||||||||||||||||||||||||||
Allowance for loan losses to loans | 0.73 | % | 0.74 | % | 0.74 | % | 0.75 | % | 0.76 | % | 0.73 | % | 0.76 | % | ||||||||||||||||||||||
Net charge-offs to average loans (4) | 0.09 | 0.07 | 0.07 | 0.08 | 0.06 | 0.07 | 0.08 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 0.30 | 0.29 | 0.30 | 0.35 | 0.35 | 0.30 | 0.35 | |||||||||||||||||||||||||||||
NPAs to total assets | 0.20 | 0.19 | 0.20 | 0.24 | 0.23 | 0.20 | 0.23 | |||||||||||||||||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 8,306 | $ | 8,200 | $ | 8,177 | $ | 7,993 | $ | 7,560 | 10 | $ | 8,170 | $ | 7,150 | 14 | ||||||||||||||||||||
Investment securities | 3,004 | 2,916 | 2,802 | 2,870 | 2,991 | - | 2,899 | 2,847 | 2 | |||||||||||||||||||||||||||
Earning assets | 11,534 | 11,320 | 11,193 | 11,076 | 10,735 | 7 | 11,282 | 10,162 | 11 | |||||||||||||||||||||||||||
Total assets | 12,505 | 12,302 | 12,213 | 12,111 | 11,687 | 7 | 12,284 | 11,015 | 12 | |||||||||||||||||||||||||||
Deposits | 10,306 | 9,950 | 9,978 | 9,759 | 9,624 | 7 | 10,000 | 8,950 | 12 | |||||||||||||||||||||||||||
Shareholders’ equity | 1,420 | 1,394 | 1,370 | 1,336 | 1,310 | 8 | 1,380 | 1,180 | 17 | |||||||||||||||||||||||||||
Common shares - basic (thousands) | 79,884 | 79,806 | 79,753 | 79,205 | 76,768 | 4 | 79,662 | 73,247 | 9 | |||||||||||||||||||||||||||
Common shares - diluted (thousands) | 79,890 | 79,818 | 79,755 | 79,215 | 76,768 | 4 | 79,671 | 73,259 | 9 | |||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 8 | $ | 8,383 | $ | 7,736 | 8 | ||||||||||||||||||||
Investment securities | 2,903 | 2,873 | 2,834 | 2,731 | 2,937 | (1 | ) | 2,903 | 2,937 | (1 | ) | |||||||||||||||||||||||||
Total assets | 12,573 | 12,405 | 12,386 | 12,264 | 11,915 | 6 | 12,573 | 11,915 | 6 | |||||||||||||||||||||||||||
Deposits | 10,535 | 10,229 | 9,966 | 9,993 | 9,808 | 7 | 10,535 | 9,808 | 7 | |||||||||||||||||||||||||||
Shareholders’ equity | 1,458 | 1,402 | 1,379 | 1,357 | 1,303 | 12 | 1,458 | 1,303 | 12 | |||||||||||||||||||||||||||
Common shares outstanding (thousands) | 79,234 | 79,202 | 79,138 | 79,123 | 77,580 | 2 | 79,234 | 77,580 | 2 | |||||||||||||||||||||||||||
(1) Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation and a first quarter 2017 release of disproportionate tax effects lodged in OCI. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Fourth quarter 2018 ratio is preliminary. | ||||||||||||||||||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||
Interest revenue | $ | 500,080 | $ | 389,720 | $ | 335,020 | $ | 278,532 | $ | 248,432 | ||||||||||
Interest expense | 61,330 | 33,735 | 25,236 | 21,109 | 25,551 | |||||||||||||||
Net interest revenue | 438,750 | 355,985 | 309,784 | 257,423 | 222,881 | |||||||||||||||
Provision for credit losses | 9,500 | 3,800 | (800 | ) | 3,700 | 8,500 | ||||||||||||||
Noninterest income | 92,961 | 88,260 | 93,697 | 72,529 | 55,554 | |||||||||||||||
Total revenue | 522,211 | 440,445 | 404,281 | 326,252 | 269,935 | |||||||||||||||
Expenses | 306,285 | 267,611 | 241,289 | 211,238 | 162,865 | |||||||||||||||
Income before income tax expense | 215,926 | 172,834 | 162,992 | 115,014 | 107,070 | |||||||||||||||
Income tax expense (benefit) | 49,815 | 105,013 | 62,336 | 43,436 | 39,450 | |||||||||||||||
Net income | 166,111 | 67,821 | 100,656 | 71,578 | 67,620 | |||||||||||||||
Merger-related and other charges | 7,345 | 14,662 | 8,122 | 17,995 | - | |||||||||||||||
Income tax benefit of merger-related and other charges | (1,494 | ) | (3,745 | ) | (3,074 | ) | (6,388 | ) | - | |||||||||||
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act | - | 38,199 | - | - | - | |||||||||||||||
Impairment of deferred tax asset on cancelled non-qualified stock options | - | - | 976 | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | 3,400 | - | - | - | |||||||||||||||
Net income - operating (1) | $ | 171,962 | $ | 120,337 | $ | 106,680 | $ | 83,185 | $ | 67,620 | ||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Per common share: | ||||||||||||||||||||
Diluted net income - GAAP | $ | 2.07 | $ | 0.92 | $ | 1.40 | $ | 1.09 | $ | 1.11 | ||||||||||
Diluted net income - operating (1) | 2.14 | 1.63 | 1.48 | 1.27 | 1.11 | |||||||||||||||
Cash dividends declared | 0.58 | 0.38 | 0.30 | 0.22 | 0.11 | |||||||||||||||
Book value | 18.24 | 16.67 | 15.06 | 14.02 | 12.20 | |||||||||||||||
Tangible book value (3) | 14.24 | 13.65 | 12.95 | 12.06 | 12.15 | |||||||||||||||
Key performance ratios: | ||||||||||||||||||||
Return on common equity - GAAP (2) | 11.60 | % | 5.67 | % | 9.41 | % | 8.15 | % | 9.17 | % | ||||||||||
Return on common equity - operating (1)(2) | 12.01 | 10.07 | 9.98 | 9.48 | 9.17 | |||||||||||||||
Return on tangible common equity - operating (1)(2)(3) | 15.69 | 12.02 | 11.86 | 10.24 | 9.32 | |||||||||||||||
Return on assets - GAAP | 1.35 | 0.62 | 1.00 | 0.85 | 0.91 | |||||||||||||||
Return on assets - operating (1) | 1.40 | 1.09 | 1.06 | 0.98 | 0.91 | |||||||||||||||
Dividend payout ratio - GAAP | 28.02 | 41.30 | 21.43 | 20.18 | 9.91 | |||||||||||||||
Dividend payout ratio - operating (1) | 27.10 | 23.31 | 20.27 | 17.32 | 9.91 | |||||||||||||||
Net interest margin (fully taxable equivalent) | 3.91 | 3.52 | 3.36 | 3.30 | 3.26 | |||||||||||||||
Efficiency ratio - GAAP | 57.31 | 59.95 | 59.80 | 63.96 | 58.26 | |||||||||||||||
Efficiency ratio - operating (1) | 55.94 | 56.67 | 57.78 | 58.51 | 58.26 | |||||||||||||||
Average equity to average assets | 11.24 | 10.71 | 10.54 | 10.27 | 9.69 | |||||||||||||||
Average tangible equity to average assets (3) | 8.92 | 9.29 | 9.21 | 9.74 | 9.67 | |||||||||||||||
Average tangible common equity to average assets (3) | 8.92 | 9.29 | 9.19 | 9.66 | 9.60 | |||||||||||||||
Tangible common equity to risk-weighted assets (3)(4) | 11.99 | 12.05 | 11.84 | 12.82 | 13.82 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Nonperforming loans | $ | 23,778 | $ | 23,658 | $ | 21,539 | $ | 22,653 | $ | 17,881 | ||||||||||
Foreclosed properties | 1,305 | 3,234 | 7,949 | 4,883 | 1,726 | |||||||||||||||
Total nonperforming assets (NPAs) | 25,083 | 26,892 | 29,488 | 27,536 | 19,607 | |||||||||||||||
Allowance for loan losses | 61,203 | 58,914 | 61,422 | 68,448 | 71,619 | |||||||||||||||
Net charge-offs | 6,113 | 5,998 | 6,766 | 6,259 | 13,879 | |||||||||||||||
Allowance for loan losses to loans | 0.73 | % | 0.76 | % | 0.89 | % | 1.14 | % | 1.53 | % | ||||||||||
Net charge-offs to average loans | 0.07 | 0.08 | 0.11 | 0.12 | 0.31 | |||||||||||||||
NPAs to loans and foreclosed properties | 0.30 | 0.35 | 0.43 | 0.46 | 0.42 | |||||||||||||||
NPAs to total assets | 0.20 | 0.23 | 0.28 | 0.29 | 0.26 | |||||||||||||||
AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||
Loans | $ | 8,170 | $ | 7,150 | $ | 6,413 | $ | 5,298 | $ | 4,450 | ||||||||||
Investment securities | 2,899 | 2,847 | 2,691 | 2,368 | 2,274 | |||||||||||||||
Earning assets | 11,282 | 10,162 | 9,257 | 7,834 | 6,880 | |||||||||||||||
Total assets | 12,284 | 11,015 | 10,054 | 8,462 | 7,436 | |||||||||||||||
Deposits | 10,000 | 8,950 | 8,177 | 7,055 | 6,228 | |||||||||||||||
Shareholders’ equity | 1,380 | 1,180 | 1,059 | 869 | 720 | |||||||||||||||
Common shares - basic (thousands) | 79,662 | 73,247 | 71,910 | 65,488 | 60,588 | |||||||||||||||
Common shares - diluted (thousands) | 79,671 | 73,259 | 71,915 | 65,492 | 60,590 | |||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||
Loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 | ||||||||||
Investment securities | 2,903 | 2,937 | 2,762 | 2,656 | 2,198 | |||||||||||||||
Total assets | 12,573 | 11,915 | 10,709 | 9,616 | 7,558 | |||||||||||||||
Deposits | 10,535 | 9,808 | 8,638 | 7,873 | 6,335 | |||||||||||||||
Shareholders’ equity | 1,458 | 1,303 | 1,076 | 1,018 | 740 | |||||||||||||||
Common shares outstanding (thousands) | 79,234 | 77,580 | 70,899 | 71,484 | 60,259 | |||||||||||||||
(1) Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) 2018 ratio is preliminary. | ||||||||||||||||||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP Performance Measures Reconciliation | ||||||||||||||||||||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||||||||||||||||||||
2018 |
2017 | For the Twelve Months Ended December 31, |
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Fourth | Third | Second | First | Fourth | ||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||||||||||||||||||||
Expenses (GAAP) | $ | 78,242 | $ | 77,718 | $ | 76,850 | $ | 73,475 | $ | 75,882 | $ | 306,285 | $ | 267,611 | $ | 241,289 | $ | 211,238 | $ | 162,865 | ||||||||||||||||||||
Merger-related and other charges | (1,234 | ) | (592 | ) | (2,873 | ) | (2,646 | ) | (7,358 | ) | (7,345 | ) | (14,662 | ) | (8,122 | ) | (17,995 | ) | - | |||||||||||||||||||||
Expenses - operating | $ | 77,008 | $ | 77,126 | $ | 73,977 | $ | 70,829 | $ | 68,524 | $ | 298,940 | $ | 252,949 | $ | 233,167 | $ | 193,243 | $ | 162,865 | ||||||||||||||||||||
Net income reconciliation | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) (GAAP) | $ | 45,137 | $ | 43,682 | $ | 39,634 | $ | 37,658 | $ | (11,916 | ) | $ | 166,111 | $ | 67,821 | $ | 100,656 | $ | 71,578 | $ | 67,620 | |||||||||||||||||||
Merger-related and other charges | 1,234 | 592 | 2,873 | 2,646 | 7,358 | 7,345 | 14,662 | 8,122 | 17,995 | - | ||||||||||||||||||||||||||||||
Income tax benefit of merger-related and other charges | (604 | ) | (141 | ) | (121 | ) | (628 | ) | (1,165 | ) | (1,494 | ) | (3,745 | ) | (3,074 | ) | (6,388 | ) | - | |||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | - | - | - | 38,199 | - | 38,199 | - | - | - | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | - | - | - | - | - | - | - | 976 | - | - | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | 3,400 | - | - | - | ||||||||||||||||||||||||||||||
Net income - operating | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | $ | 32,476 | $ | 171,962 | $ | 120,337 | $ | 106,680 | $ | 83,185 | $ | 67,620 | ||||||||||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Diluted income (loss) per common share (GAAP) | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | $ | (0.16 | ) | $ | 2.07 | $ | 0.92 | $ | 1.40 | $ | 1.09 | $ | 1.11 | |||||||||||||||||||
Merger-related and other charges | 0.01 | 0.01 | 0.04 | 0.03 | 0.08 | 0.07 | 0.14 | 0.07 | 0.18 | - | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | - | - | - | 0.50 | - | 0.52 | - | - | - | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | - | - | - | - | - | - | - | 0.01 | - | - | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | 0.05 | - | - | - | ||||||||||||||||||||||||||||||
Diluted income per common share - operating | $ | 0.57 | $ | 0.55 | $ | 0.53 | $ | 0.50 | $ | 0.42 | $ | 2.14 | $ | 1.63 | $ | 1.48 | $ | 1.27 | $ | 1.11 | ||||||||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 18.24 | $ | 17.56 | $ | 17.29 | $ | 17.02 | $ | 16.67 | $ | 18.24 | $ | 16.67 | $ | 15.06 | $ | 14.02 | $ | 12.20 | ||||||||||||||||||||
Effect of goodwill and other intangibles | (4.00 | ) | (4.02 | ) | (4.04 | ) | (4.06 | ) | (3.02 | ) | (4.00 | ) | (3.02 | ) | (2.11 | ) | (1.96 | ) | (0.05 | ) | ||||||||||||||||||||
Tangible book value per common share | $ | 14.24 | $ | 13.54 | $ | 13.25 | $ | 12.96 | $ | 13.65 | $ | 14.24 | $ | 13.65 | $ | 12.95 | $ | 12.06 | $ | 12.15 | ||||||||||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||||||||||||||
Return on common equity (GAAP) | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | (3.57 | ) | % | 11.60 | % | 5.67 | % | 9.41 | % | 8.15 | % | 9.17 | % | |||||||||||||||||||
Merger-related and other charges | 0.17 | 0.13 | 0.77 | 0.60 | 1.86 | 0.41 | 0.92 | 0.48 | 1.33 | - | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | - | - | - | 11.44 | - | 3.20 | - | - | - | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | - | - | - | - | - | - | - | 0.09 | - | - | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | 0.28 | - | - | - | ||||||||||||||||||||||||||||||
Return on common equity - operating | 12.25 | 12.09 | 11.97 | 11.71 | 9.73 | 12.01 | 10.07 | 9.98 | 9.48 | 9.17 | ||||||||||||||||||||||||||||||
Effect of goodwill and other intangibles | 3.63 | 3.72 | 3.82 | 3.55 | 2.20 | 3.68 | 1.95 | 1.88 | 0.76 | 0.15 | ||||||||||||||||||||||||||||||
Return on tangible common equity - operating | 15.88 | % | 15.81 | % | 15.79 | % | 15.26 | % | 11.93 | % | 15.69 | % | 12.02 | % | 11.86 | % | 10.24 | % | 9.32 | % | ||||||||||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.43 | % | 1.41 | % | 1.30 | % | 1.26 | % | (0.40 | ) | % | 1.35 | % | 0.62 | % | 1.00 | % | 0.85 | % | 0.91 | % | |||||||||||||||||||
Merger-related and other charges | 0.02 | 0.01 | 0.09 | 0.07 | 0.20 | 0.05 | 0.09 | 0.05 | 0.13 | - | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | - | - | - | 1.30 | - | 0.35 | - | - | - | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | - | - | - | - | - | - | - | 0.01 | - | - | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | 0.03 | - | - | - | ||||||||||||||||||||||||||||||
Return on assets - operating | 1.45 | % | 1.42 | % | 1.39 | % | 1.33 | % | 1.10 | % | 1.40 | % | 1.09 | % | 1.06 | % | 0.98 | % | 0.91 | % | ||||||||||||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||||||||||||||||||||||
Dividend payout ratio (GAAP) | 28.57 | % | 27.78 | % | 30.61 | % | 25.53 | % | (62.50 | ) | % | 28.02 | % | 41.30 | % | 21.43 | % | 20.18 | % | 9.91 | % | |||||||||||||||||||
Merger-related and other charges | (0.50 | ) | (0.51 | ) | (2.31 | ) | (1.53 | ) | 12.04 | (0.92 | ) | (5.65 | ) | (1.02 | ) | (2.86 | ) | - | ||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | - | - | - | 74.27 | - | (11.61 | ) | - | - | - | |||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | - | - | - | - | - | - | - | (0.14 | ) | - | - | |||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | - | - | (0.73 | ) | - | - | - | |||||||||||||||||||||||||||||
Dividend payout ratio - operating | 28.07 | % | 27.27 | % | 28.30 | % | 24.00 | % | 23.81 | % | 27.10 | % | 23.31 | % | 20.27 | % | 17.32 | % | 9.91 | % | ||||||||||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (GAAP) | 56.73 | % | 56.82 | % | 57.94 | % | 57.83 | % | 63.03 | % | 57.31 | % | 59.95 | % | 59.80 | % | 63.96 | % | 58.26 | % | ||||||||||||||||||||
Merger-related and other charges | (0.90 | ) | (0.43 | ) | (2.17 | ) | (2.08 | ) | (6.11 | ) | (1.37 | ) | (3.28 | ) | (2.02 | ) | (5.45 | ) | - | |||||||||||||||||||||
Efficiency ratio - operating | 55.83 | % | 56.39 | % | 55.77 | % | 55.75 | % | 56.92 | % | 55.94 | % | 56.67 | % | 57.78 | % | 58.51 | % | 58.26 | % | ||||||||||||||||||||
Average equity to average assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Average equity to assets (GAAP) | 11.35 | % | 11.33 | % | 11.21 | % | 11.03 | % | 11.21 | % | 11.24 | % | 10.71 | % | 10.54 | % | 10.27 | % | 9.69 | % | ||||||||||||||||||||
Effect of goodwill and other intangibles | (2.31 | ) | (2.36 | ) | (2.38 | ) | (2.21 | ) | (1.69 | ) | (2.32 | ) | (1.42 | ) | (1.33 | ) | (0.53 | ) | (0.02 | ) | ||||||||||||||||||||
Average tangible equity to average assets | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | 9.21 | 9.74 | 9.67 | ||||||||||||||||||||||||||||||
Effect of preferred equity | - | - | - | - | - | - | - | (0.02 | ) | (0.08 | ) | (0.07 | ) | |||||||||||||||||||||||||||
Average tangible common equity to average assets | 9.04 | % | 8.97 | % | 8.83 | % | 8.82 | % | 9.52 | % | 8.92 | % | 9.29 | % | 9.19 | % | 9.66 | % | 9.60 | % | ||||||||||||||||||||
Tangible common equity to risk-weighted assets reconciliation (1) | ||||||||||||||||||||||||||||||||||||||||
Tier 1 capital ratio (Regulatory) | 12.41 | % | 12.25 | % | 11.94 | % | 11.61 | % | 12.24 | % | 12.41 | % | 12.24 | % | 11.23 | % | 11.45 | % | 12.06 | % | ||||||||||||||||||||
Effect of other comprehensive income | (0.44 | ) | (0.68 | ) | (0.57 | ) | (0.50 | ) | (0.29 | ) | (0.44 | ) | (0.29 | ) | (0.34 | ) | (0.38 | ) | (0.35 | ) | ||||||||||||||||||||
Effect of deferred tax limitation | 0.28 | 0.30 | 0.33 | 0.42 | 0.51 | 0.28 | 0.51 | 1.26 | 2.05 | 3.11 | ||||||||||||||||||||||||||||||
Effect of trust preferred | (0.26 | ) | (0.26 | ) | (0.34 | ) | (0.34 | ) | (0.36 | ) | (0.26 | ) | (0.36 | ) | (0.25 | ) | (0.08 | ) | (1.00 | ) | ||||||||||||||||||||
Effect of preferred equity | - | - | - | - | - | - | - | - | (0.15 | ) | - | |||||||||||||||||||||||||||||
Basel III intangibles transition adjustment | - | - | - | - | (0.05 | ) | - | (0.05 | ) | (0.06 | ) | (0.10 | ) | - | ||||||||||||||||||||||||||
Basel III disallowed investments | - | - | - | - | - | - | - | - | 0.03 | - | ||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 11.99 | % | 11.61 | % | 11.36 | % | 11.19 | % | 12.05 | % | 11.99 | % | 12.05 | % | 11.84 | % | 12.82 | % | 13.82 | % | ||||||||||||||||||||
(1) Fourth quarter 2018 ratios are preliminary. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||
Loan Portfolio Composition at Period-End | ||||||||||||||||||||||
2018 |
2017 | Linked Quarter Change |
Year over Year Change |
|||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||
Owner occupied commercial RE | $ | 1,648 | $ | 1,673 | $ | 1,682 | $ | 1,898 | $ | 1,924 | $ | (25 | ) | $ | (276 | ) | ||||||
Income producing commercial RE | 1,812 | 1,788 | 1,821 | 1,677 | 1,595 | 24 | 217 | |||||||||||||||
Commercial & industrial | 1,278 | 1,194 | 1,193 | 1,142 | 1,131 | 84 | 147 | |||||||||||||||
Commercial construction | 796 | 761 | 735 | 691 | 712 | 35 | 84 | |||||||||||||||
Equipment financing | 565 | 509 | 465 | 423 | - | 56 | 565 | |||||||||||||||
Total commercial | 6,099 | 5,925 | 5,896 | 5,831 | 5,362 | 174 | 737 | |||||||||||||||
Residential mortgage | 1,049 | 1,035 | 1,021 | 992 | 974 | 14 | 75 | |||||||||||||||
Home equity lines of credit | 694 | 702 | 708 | 712 | 731 | (8 | ) | (37 | ) | |||||||||||||
Residential construction | 211 | 198 | 195 | 190 | 183 | 13 | 28 | |||||||||||||||
Consumer | 330 | 366 | 400 | 459 | 486 | (36 | ) | (156 | ) | |||||||||||||
Total loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 157 | 647 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||||
North Georgia | $ | 981 | $ | 992 | $ | 1,001 | $ | 1,004 | $ | 1,019 | (11 | ) | (38 | ) | ||||||||
Atlanta MSA | 1,507 | 1,493 | 1,533 | 1,513 | 1,510 | 14 | (3 | ) | ||||||||||||||
North Carolina | 1,072 | 1,078 | 1,067 | 1,037 | 1,049 | (6 | ) | 23 | ||||||||||||||
Coastal Georgia | 588 | 610 | 623 | 635 | 630 | (22 | ) | (42 | ) | |||||||||||||
Gainesville MSA | 247 | 235 | 230 | 231 | 248 | 12 | (1 | ) | ||||||||||||||
East Tennessee | 477 | 460 | 474 | 473 | 475 | 17 | 2 | |||||||||||||||
South Carolina | 1,645 | 1,586 | 1,571 | 1,537 | 1,486 | 59 | 159 | |||||||||||||||
Commercial Banking Solutions | 1,658 | 1,530 | 1,444 | 1,438 | 961 | 128 | 697 | |||||||||||||||
Indirect auto | 208 | 242 | 277 | 316 | 358 | (34 | ) | (150 | ) | |||||||||||||
Total loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 157 | 647 | ||||||||||
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Financial Highlights | |||||||||||||||
Loan Portfolio Composition at Year-End | |||||||||||||||
(in millions) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||
LOANS BY CATEGORY | |||||||||||||||
Owner occupied commercial RE | $ | 1,648 | $ | 1,924 | $ | 1,650 | $ | 1,571 | $ | 1,257 | |||||
Income producing commercial RE | 1,812 | 1,595 | 1,282 | 1,021 | 767 | ||||||||||
Commercial & industrial | 1,278 | 1,131 | 1,070 | 785 | 710 | ||||||||||
Commercial construction | 796 | 712 | 634 | 518 | 364 | ||||||||||
Equipment financing | 565 | - | - | - | - | ||||||||||
Total commercial | 6,099 | 5,362 | 4,636 | 3,895 | 3,098 | ||||||||||
Residential mortgage | 1,049 | 974 | 857 | 764 | 614 | ||||||||||
Home equity lines of credit | 694 | 731 | 655 | 589 | 456 | ||||||||||
Residential construction | 211 | 183 | 190 | 176 | 131 | ||||||||||
Consumer installment | 330 | 486 | 583 | 571 | 373 | ||||||||||
Total loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 | |||||
LOANS BY MARKET | |||||||||||||||
North Georgia | $ | 981 | $ | 1,019 | $ | 1,097 | $ | 1,125 | $ | 1,163 | |||||
Atlanta MSA | 1,507 | 1,510 | 1,399 | 1,259 | 1,243 | ||||||||||
North Carolina | 1,072 | 1,049 | 545 | 549 | 553 | ||||||||||
Coastal Georgia | 588 | 630 | 581 | 537 | 456 | ||||||||||
Gainesville MSA | 247 | 248 | 248 | 254 | 257 | ||||||||||
East Tennessee | 477 | 475 | 504 | 504 | 280 | ||||||||||
South Carolina | 1,645 | 1,486 | 1,233 | 819 | 30 | ||||||||||
Commercial Banking Solutions | 1,658 | 961 | 855 | 492 | 421 | ||||||||||
Indirect auto | 208 | 358 | 459 | 456 | 269 | ||||||||||
Total loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 | |||||
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2018 |
Third Quarter 2018 |
Second Quarter 2018 |
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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 | $ | 6,421 | $ | 170 | $ | 6,591 | $ | 4,884 | $ | 183 | $ | 5,067 | $ | 5,772 | $ | 812 | $ | 6,584 | ||||||||||||||||||||||||||||
Income producing CRE | 1,160 | - | 1,160 | 1,194 | 156 | 1,350 | 991 | 455 | 1,446 | |||||||||||||||||||||||||||||||||||||
Commercial & industrial | 1,417 | - | 1,417 | 1,516 | - | 1,516 | 2,180 | - | 2,180 | |||||||||||||||||||||||||||||||||||||
Commercial construction | 605 | 421 | 1,026 | 825 | 522 | 1,347 | 613 | 576 | 1,189 | |||||||||||||||||||||||||||||||||||||
Equipment financing | 2,677 | - | 2,677 | 1,181 | - | 1,181 | 1,075 | - | 1,075 | |||||||||||||||||||||||||||||||||||||
Total commercial | 12,280 | 591 | 12,871 | 9,600 | 861 | 10,461 | 10,631 | 1,843 | 12,474 | |||||||||||||||||||||||||||||||||||||
Residential mortgage | 8,035 | 654 | 8,689 | 8,928 | 424 | 9,352 | 7,918 | 184 | 8,102 | |||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 2,360 | 60 | 2,420 | 2,814 | - | 2,814 | 1,812 | 550 | 2,362 | |||||||||||||||||||||||||||||||||||||
Residential construction | 288 | - | 288 | 455 | 51 | 506 | 637 | 20 | 657 | |||||||||||||||||||||||||||||||||||||
Consumer | 815 | - | 815 | 733 | - | 733 | 819 | - | 819 | |||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||||||||||||
NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||||||||||||
North Georgia | $ | 6,527 | $ | 286 | $ | 6,813 | $ | 7,170 | $ | 361 | $ | 7,531 | $ | 7,583 | $ | 640 | $ | 8,223 | ||||||||||||||||||||||||||||
Atlanta MSA | 1,578 | - | 1,578 | 1,778 | 132 | 1,910 | 1,928 | 132 | 2,060 | |||||||||||||||||||||||||||||||||||||
North Carolina | 3,259 | 743 | 4,002 | 3,690 | 480 | 4,170 | 3,029 | 750 | 3,779 | |||||||||||||||||||||||||||||||||||||
Coastal Georgia | 1,491 | - | 1,491 | 1,498 | - | 1,498 | 943 | - | 943 | |||||||||||||||||||||||||||||||||||||
Gainesville MSA | 479 | - | 479 | 212 | - | 212 | 186 | - | 186 | |||||||||||||||||||||||||||||||||||||
East Tennessee | 1,147 | - | 1,147 | 1,403 | 128 | 1,531 | 1,473 | 143 | 1,616 | |||||||||||||||||||||||||||||||||||||
South Carolina | 4,123 | 276 | 4,399 | 3,280 | 235 | 3,515 | 3,093 | 362 | 3,455 | |||||||||||||||||||||||||||||||||||||
Commercial Banking Solutions | 4,448 | - | 4,448 | 2,871 | - | 2,871 | 2,831 | 570 | 3,401 | |||||||||||||||||||||||||||||||||||||
Indirect auto | 726 | - | 726 | 628 | - | 628 | 751 | - | 751 | |||||||||||||||||||||||||||||||||||||
Total NPAs | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||||||||||||
NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | $ | 26,240 | $ | 2,714 | $ | 28,954 | ||||||||||||||||||||||||||||
Acquisitions | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Loans placed on non-accrual | 5,829 | - | 5,829 | 5,759 | - | 5,759 | 3,612 | - | 3,612 | |||||||||||||||||||||||||||||||||||||
Payments received | (2,780 | ) | - | (2,780 | ) | (3,095 | ) | - | (3,095 | ) | (5,314 | ) | - | (5,314 | ) | |||||||||||||||||||||||||||||||
Loan charge-offs | (933 | ) | - | (933 | ) | (1,588 | ) | - | (1,588 | ) | (2,065 | ) | - | (2,065 | ) | |||||||||||||||||||||||||||||||
Foreclosures | (868 | ) | 955 | 87 | (363 | ) | 454 | 91 | (656 | ) | 984 | 328 | ||||||||||||||||||||||||||||||||||
Property sales | - | (1,019 | ) | (1,019 | ) | - | (1,659 | ) | (1,659 | ) | - | (1,029 | ) | (1,029 | ) | |||||||||||||||||||||||||||||||
Write downs | - | (112 | ) | (112 | ) | - | (166 | ) | (166 | ) | - | (106 | ) | (106 | ) | |||||||||||||||||||||||||||||||
Net gains on sales | - | 145 | 145 | - | 110 | 110 | - | 34 | 34 | |||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||||||||||||
Fourth Quarter 2018 | Third Quarter 2018 | Second Quarter 2018 | ||||||||||||||||||||||||||||||||||||||||||||
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 | $ | (52 | ) | (0.01 | ) | % | $ | (251 | ) | (0.06 | ) | % | $ | (578 | ) | (0.13 | ) | % | ||||||||||||||||||||||||||||
Income producing CRE | 399 | 0.09 | 1 | - | 1,421 | 0.33 | ||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | (149 | ) | (0.05 | ) | 418 | 0.14 | 16 | 0.01 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | (230 | ) | (0.12 | ) | (43 | ) | (0.02 | ) | (107 | ) | (0.06 | ) | ||||||||||||||||||||||||||||||||||
Equipment financing | 599 | 0.44 | 482 | 0.39 | (49 | ) | (0.04 | ) | ||||||||||||||||||||||||||||||||||||||
Total commercial | 567 | 0.04 | 607 | 0.04 | 703 | 0.05 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 290 | 0.11 | 171 | 0.07 | 11 | - | ||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 382 | 0.22 | 279 | 0.16 | 21 | 0.01 | ||||||||||||||||||||||||||||||||||||||||
Residential construction | (36 | ) | (0.07 | ) | (164 | ) | (0.33 | ) | (58 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||
Consumer | 584 | 0.67 | 573 | 0.60 | 682 | 0.64 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,787 | 0.09 | $ | 1,466 | 0.07 | $ | 1,359 | 0.07 | |||||||||||||||||||||||||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||||||||||||||||||||||||
North Georgia | $ | 543 | 0.22 | % | $ | 483 | 0.19 | % | $ | 246 | 0.10 | % | ||||||||||||||||||||||||||||||||||
Atlanta MSA | (159 | ) | (0.04 | ) | 99 | 0.03 | 103 | 0.03 | ||||||||||||||||||||||||||||||||||||||
North Carolina | 68 | 0.03 | (87 | ) | (0.03 | ) | 1,268 | 0.48 | ||||||||||||||||||||||||||||||||||||||
Coastal Georgia | (86 | ) | (0.06 | ) | 24 | 0.02 | 19 | 0.01 | ||||||||||||||||||||||||||||||||||||||
Gainesville MSA | 333 | 0.56 | (48 | ) | (0.08 | ) | (2 | ) | - | |||||||||||||||||||||||||||||||||||||
East Tennessee | (111 | ) | (0.09 | ) | (1 | ) | - | 76 | 0.06 | |||||||||||||||||||||||||||||||||||||
South Carolina | 57 | 0.01 | 418 | 0.11 | (1,057 | ) | (0.27 | ) | ||||||||||||||||||||||||||||||||||||||
Commercial Banking Solutions | 948 | 0.23 | 403 | 0.11 | 381 | 0.11 | ||||||||||||||||||||||||||||||||||||||||
Indirect auto | 194 | 0.34 | 175 | 0.27 | 325 | 0.44 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,787 | 0.09 | $ | 1,466 | 0.07 | $ | 1,359 | 0.07 | |||||||||||||||||||||||||||||||||||||
(1) Annualized. |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, |
December 31, |
|||||||||||||
(in thousands, except per share data) | 2018 | 2017 |
2018 |
2017 | ||||||||||
Interest revenue: | ||||||||||||||
Loans, including fees | $ | 112,087 | $ | 87,234 | $ | 420,383 | $ | 315,050 | ||||||
Investment securities, including tax exempt of $1,140, $909, $4,189, and $2,216 | 21,237 | 19,023 | 77,685 | 72,388 | ||||||||||
Deposits in banks and short-term investments | 530 | 500 | 2,012 | 2,282 | ||||||||||
Total interest revenue | 133,854 | 106,757 | 500,080 | 389,720 | ||||||||||
Interest expense: | ||||||||||||||
Deposits: | ||||||||||||||
NOW and interest-bearing demand | 3,073 | 1,433 | 7,390 | 3,365 | ||||||||||
Money market | 4,078 | 2,095 | 12,097 | 7,033 | ||||||||||
Savings | 33 | 46 | 150 | 135 | ||||||||||
Time | 7,006 | 2,272 | 19,906 | 6,529 | ||||||||||
Total deposit interest expense | 14,190 | 5,846 | 39,543 | 17,062 | ||||||||||
Short-term borrowings | 340 | 175 | 1,112 | 352 | ||||||||||
Federal Home Loan Bank advances | 794 | 1,492 | 6,345 | 6,095 | ||||||||||
Long-term debt | 3,651 | 1,736 | 14,330 | 10,226 | ||||||||||
Total interest expense | 18,975 | 9,249 | 61,330 | 33,735 | ||||||||||
Net interest revenue | 114,879 | 97,508 | 438,750 | 355,985 | ||||||||||
Provision for credit losses | 2,100 | 1,200 | 9,500 | 3,800 | ||||||||||
Net interest revenue after provision for credit losses | 112,779 | 96,308 | 429,250 | 352,185 | ||||||||||
Noninterest income: | ||||||||||||||
Service charges and fees | 9,166 | 8,770 | < |