Press Release Details

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

• Net interest revenue of $85.1 million, up $10.2 million or 14 percent from year ago
• Net interest margin of 3.47 percent, up two basis points from first quarter and up 12 basis points from year ago
• Return on assets of 1.06 percent, or 1.10 percent excluding merger-related and other charges
• Efficiency ratio of 57.9 percent, or 56.2 percent excluding merger-related and other charges
• Announced two acquisitions during the quarter

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

On an operating basis, net income rose to $29.4 million for the second quarter of 2017 compared with $26.0 million for the second quarter of 2016.  Second quarter 2017 operating net income excludes merger-related and executive retirement charges totaling $1.16 million, net of the associated income tax benefit.  Second quarter 2016 operating net income excludes $731,000 in merger-related charges, net of the associated income tax benefit.  On a per diluted share basis, operating net income was 41 cents for the second quarter of 2017 compared with 36 cents for the second quarter of 2016.

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

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

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

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

"On June 27, we announced our planned acquisition of Four Oaks Bank & Trust Company, which should close in the fourth quarter and will extend our footprint farther east in North Carolina to the fast-growing Raleigh MSA.  We have long sought to enter this market and are delighted to find an exceptional partner in Four Oaks.  I could not be more pleased with these two partnerships and look forward to them becoming part of United.

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

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

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

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

"Our second quarter provision for loan losses reflects continued strong, steady credit quality and a low level of net charge-offs," Tallent commented.  "Our credit quality indicators remain favorable and our outlook is for that to continue.  We also expect our provision levels to gradually increase during the year due to loan growth, while our allowance and the related ratio to total loans will decline slightly."

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

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

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

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

Tallent concluded, "Our bankers continue to do what they do best and that is take care of their customers by delivering the highest level of courteous service.  Their passion and commitment drive our performance and are reflected in our second quarter financial results.  I look forward to the opportunities that lie ahead and am excited about completing the acquisitions of Horry County State Bank and Four Oaks Bank & Trust Company.  These two exceptional banks are outstanding strategic partners in key growth markets and share our passion for banking and our commitment to customer service.  I look forward to welcoming them aboard and for the opportunities that these acquisitions create to recruit other talented bankers from within these markets into the United family."

Conference Call

United will hold a conference call today, Wednesday, July 26, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 47369140.  The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ:UCBI) is a bank holding company based in Blairsville, Georgia with $10.8 billion in assets.  The company's banking subsidiary, United Community Bank, is one of the southeast region's largest full-service banks, operating 134 offices in Georgia, North Carolina, South Carolina and Tennessee.  The bank specializes in personalized community banking services for individuals, small businesses and corporations.  Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management.  Respected national research firms consistently recognize United Community Bank for outstanding customer service. In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast.  In 2017, for the fourth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America.  Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.

Non-GAAP Financial Measures
This News Release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP.  This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as "operating net income," "operating net income per diluted share," "operating net income available to common shareholders," "operating diluted income per common share," "tangible book value per common share," "operating return on common equity," "operating return on tangible common equity," "operating return on assets," "operating dividend payout ratio," "operating efficiency ratio," "average tangible equity to average assets," "average tangible common equity to average assets" and "tangible common equity to risk-weighted assets."  These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United's underlying performance trends.  These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.  To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
																					Second
		2017								2016											Quarter
	Second				First				Fourth				Third				Second				2017-2016
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter				Change
INCOME SUMMARY
Interest revenue	$	93,166			$	90,958			$	87,778			$	85,439			$	81,082
Interest expense		8,018				7,404				6,853				6,450				6,164
Net interest revenue		85,148				83,554				80,925				78,989				74,918			14		%
Provision for credit losses		800				800				-				(300	)			(300	)
Fee revenue		23,685				22,074				25,233				26,361				23,497			1
Total revenue		108,033				104,828				106,158				105,650				98,715			9
Expenses		63,229				62,826				61,321				64,023				58,060			9
Income before income tax expense		44,804				42,002				44,837				41,627				40,655			10
Income tax expense		16,537				18,478				17,616				15,753				15,389			7
Net income		28,267				23,524				27,221				25,874				25,266			12
Preferred dividends		-				-				-				-				-
Net income available to common shareholders	$	28,267			$	23,524			$	27,221			$	25,874			$	25,266			12
Merger-related and other charges		1,830				2,054				1,141				3,152				1,176
Income tax benefit of merger-related and other charges		(675	)			(758	)			(432	)			(1,193	)			(445	)
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				976				-				-
Release of disproportionate tax effects lodged in OCI		-				3,400				-				-				-
Net income available to common shareholders - operating (1)	$	29,422			$	28,220			$	28,906			$	27,833			$	25,997			13
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	.39			$	.33			$	.38			$	.36			$	.35			11
Diluted net income - operating  (1)		.41				.39				.40				.39				.36			14
Cash dividends declared		.09				.09				.08				.08				.07
Book value		15.83				15.40				15.06				15.12				14.80			7
Tangible book value (3)		13.74				13.30				12.95				13.00				12.84			7
Key performance ratios:
Return on common equity - GAAP (2)(4)		9.98		%		8.54		%		9.89		%		9.61		%		9.54		%
Return on common equity - operating (1)(2)(4)		10.39				10.25				10.51				10.34				9.81
Return on tangible common equity - operating (1)(2)(3)(4)		12.19				12.10				12.47				12.45				11.56
Return on assets - GAAP (4)		1.06				.89				1.03				1.00				1.04
Return on assets - operating (1)(4)		1.10				1.07				1.10				1.08				1.07
Dividend payout ratio - GAAP		23.08				27.27				21.05				22.22				20.00
Dividend payout ratio - operating (1)		21.95				23.08				20.00				20.51				19.44
Net interest margin (fully taxable equivalent) (4)		3.47				3.45				3.34				3.34				3.35
Efficiency ratio - GAAP		57.89				59.29				57.65				60.78				59.02
Efficiency ratio - operating  (1)		56.21				57.35				56.58				57.79				57.82
Average equity to average assets		10.49				10.24				10.35				10.38				10.72
Average tangible equity to average assets (3)		9.23				8.96				9.04				8.98				9.43
Average tangible common equity to average assets (3)		9.23				8.96				9.04				8.98				9.43
Tangible common equity to risk-weighted assets (3)(5)		12.44				12.07				11.84				12.22				12.87
ASSET QUALITY
Nonperforming loans	$	23,095			$	19,812			$	21,539			$	21,572			$	21,348			8
Foreclosed properties		2,739				5,060				7,949				9,187				6,176			(56	)
Total nonperforming assets (NPAs)		25,834				24,872				29,488				30,759				27,524			(6	)
Allowance for loan losses		59,500				60,543				61,422				62,961				64,253			(7	)
Net charge-offs		1,623				1,679				1,539				1,359				1,730			(6	)
Allowance for loan losses to loans		.85		%		.87		%		.89		%		.94		%		1.02		%
Net charge-offs to average loans (4)		.09				.10				.09				.08				.11
NPAs to loans and foreclosed properties		.37				.36				.43				.46				.44
NPAs to total assets		.24				.23				.28				.30				.28
AVERAGE BALANCES ($ in millions)
Loans	$	6,980			$	6,904			$	6,814			$	6,675			$	6,151			13
Investment securities		2,775				2,822				2,690				2,610				2,747			1
Earning assets		9,899				9,872				9,665				9,443				9,037			10
Total assets		10,704				10,677				10,484				10,281				9,809			9
Deposits		8,659				8,592				8,552				8,307				7,897			10
Shareholders' equity		1,123				1,093				1,085				1,067				1,051			7
Common shares - basic (thousands)		71,810				71,700				71,641				71,556				72,202			(1	)
Common shares - diluted (thousands)		71,820				71,708				71,648				71,561				72,207			(1	)
AT PERIOD END ($ in millions)
Loans	$	7,041			$	6,965			$	6,921			$	6,725			$	6,287			12
Investment securities		2,787				2,767				2,762				2,560				2,677			4
Total assets		10,837				10,732				10,709				10,298				9,928			9
Deposits		8,736				8,752				8,638				8,442				7,857			11
Shareholders' equity		1,133				1,102				1,076				1,079				1,060			7
Common shares outstanding (thousands)		70,981				70,973				70,899				70,861				71,122			-
(1)  Excludes merger-related and other charges, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options.  (2)  Net income available to common shareholders, which is net of preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (3)  Excludes effect of acquisition related intangibles and associated amortization.  (4)  Annualized.  (5)  Second quarter 2017 ratio is preliminary.

 

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

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2017								2016
	Second				First				Fourth				Third				Second
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter
Expense reconciliation
Expenses (GAAP)	$	63,229			$	62,826			$	61,321			$	64,023			$	58,060
Merger-related and other charges		(1,830	)			(2,054	)			(1,141	)			(3,152	)			(1,176	)
Expenses - operating	$	61,399			$	60,772			$	60,180			$	60,871			$	56,884
Net income reconciliation
Net income (GAAP)	$	28,267			$	23,524			$	27,221			$	25,874			$	25,266
Merger-related and other charges		1,830				2,054				1,141				3,152				1,176
Income tax benefit of merger-related and other charges		(675	)			(758	)			(432	)			(1,193	)			(445	)
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				976				-				-
Release of disproportionate tax effects lodged in OCI		-				3,400				-				-				-
Net income - operating	$	29,422			$	28,220			$	28,906			$	27,833			$	25,997
Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)	$	28,267			$	23,524			$	27,221			$	25,874			$	25,266
Merger-related and other charges		1,830				2,054				1,141				3,152				1,176
Income tax benefit of merger-related and other charges		(675	)			(758	)			(432	)			(1,193	)			(445	)
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				976				-				-
Release of disproportionate tax effects lodged in OCI		-				3,400				-				-				-
Net income available to common shareholders - operating	$	29,422			$	28,220			$	28,906			$	27,833			$	25,997
Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	.39			$	.33			$	.38			$	.36			$	.35
Merger-related and other charges		.02				.01				.01				.03				.01
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				.01				-				-
Release of disproportionate tax effects lodged in OCI		-				.05				-				-				-
Diluted income per common share - operating	$	.41			$	.39			$	.40			$	.39			$	.36
Book value per common share reconciliation
Book value per common share (GAAP)	$	15.83			$	15.40			$	15.06			$	15.12			$	14.80
Effect of goodwill and other intangibles		(2.09	)			(2.10	)			(2.11	)			(2.12	)			(1.96	)
Tangible book value per common share	$	13.74			$	13.30			$	12.95			$	13.00			$	12.84
Return on tangible common equity reconciliation
Return on common equity (GAAP)		9.98		%		8.54		%		9.89		%		9.61		%		9.54		%
Merger-related and other charges		.41				.47				.26				.73				.27
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				.36				-				-
Release of disproportionate tax effects lodged in OCI		-				1.24				-				-				-
Return on common equity - operating		10.39				10.25				10.51				10.34				9.81
Effect of goodwill and other intangibles		1.80				1.85				1.96				2.11				1.75
Return on tangible common equity - operating		12.19		%		12.10		%		12.47		%		12.45		%		11.56		%
Return on assets reconciliation
Return on assets (GAAP)		1.06		%		.89		%		1.03		%		1.00		%		1.04		%
Merger-related and other charges		.04				.05				.03				.08				.03
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				.04				-				-
Release of disproportionate tax effects lodged in OCI		-				.13				-				-				-
Return on assets - operating		1.10		%		1.07		%		1.10		%		1.08		%		1.07		%
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		23.08		%		27.27		%		21.05		%		22.22		%		20.00		%
Merger-related and other charges		(1.13	)			(.98	)			(.54	)			(1.71	)			(.56	)
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				(.51	)			-				-
Release of disproportionate tax effects lodged in OCI		-				(3.21	)			-				-				-
Dividend payout ratio - operating		21.95		%		23.08		%		20.00		%		20.51		%		19.44		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		57.89		%		59.29		%		57.65		%		60.78		%		59.02		%
Merger-related and other charges		(1.68	)			(1.94	)			(1.07	)			(2.99	)			(1.20	)
Efficiency ratio - operating		56.21		%		57.35		%		56.58		%		57.79		%		57.82		%
Average equity to assets reconciliation
Equity to assets (GAAP)		10.49		%		10.24		%		10.35		%		10.38		%		10.72		%
Effect of goodwill and other intangibles		(1.26	)			(1.28	)			(1.31	)			(1.40	)			(1.29	)
Tangible equity to assets		9.23				8.96				9.04				8.98				9.43
Effect of preferred equity		-				-				-				-				-
Tangible common equity to assets		9.23		%		8.96		%		9.04		%		8.98		%		9.43		%
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory)		11.92		%		11.46		%		11.23		%		11.04		%		11.44		%
Effect of other comprehensive income		(.15	)			(.24	)			(.34	)			-				(.06	)
Effect of deferred tax limitation		.94				1.13				1.26				1.50				1.63
Effect of trust preferred		(.25	)			(.25	)			(.25	)			(.26	)			(.08	)
Effect of preferred equity		-				-				-				-				-
Basel III intangibles transition adjustment		(.02	)			(.03	)			(.06	)			(.06	)			(.06	)
Basel III disallowed investments		-				-				-				-				-
Tangible common equity to risk-weighted assets		12.44		%		12.07		%		11.84		%		12.22		%		12.87		%
(1)  Second quarter 2017 ratios are preliminary.

 

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

 

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

 

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

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		Second Quarter 2017
		Nonperforming					Foreclosed					Total
(in thousands)		Loans					Properties					NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	5,248				$	580				$	5,828
Income producing CRE			2,587					-					2,587
Commercial & industrial			1,010					-					1,010
Commercial construction			2,530					611					3,141
Total commercial			11,375					1,191					12,566
Residential mortgage			7,886					457					8,343
Home equity lines of credit			2,152					201					2,353
Residential construction			287					890					1,177
Consumer installment			1,395					-					1,395
Total NPAs		$	23,095				$	2,739				$	25,834
NONPERFORMING ASSETS BY MARKET
North Georgia		$	5,449				$	225				$	5,674
Atlanta MSA			906					423					1,329
North Carolina			4,700					472					5,172
Coastal Georgia			2,542					-					2,542
Gainesville MSA			622					-					622
East Tennessee			2,216					103					2,319
South Carolina			3,472					1,516					4,988
Commercial Banking Solutions			1,914					-					1,914
Indirect auto			1,274					-					1,274
Total NPAs		$	23,095				$	2,739				$	25,834
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	19,812				$	5,060				$	24,872
Acquisitions			-					-					-
Loans placed on non-accrual			8,110					-					8,110
Payments received			(2,955		)			-					(2,955		)
Loan charge-offs			(1,564		)			-					(1,564		)
Foreclosures			(308		)			481					173
Capitalized costs			-					-					-
Property sales			-					(2,704		)			(2,704		)
Write downs			-					(294		)			(294		)
Net gains (losses) on sales			-					196					196
Ending Balance		$	23,095				$	2,739				$	25,834

 

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

 

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

 

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

 

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

 

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

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
					2017									2016
	Average						Avg.			Average						Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance				Interest		Rate			Balance				Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	6,979,980			$	74,811	4.30	%		$	6,150,654			$	63,485	4.15	%
Taxable securities (3)		2,719,390				17,421	2.56				2,720,061				16,684	2.45
Tax-exempt securities (FTE) (1)(3)		55,992				584	4.17				27,434				244	3.56
Federal funds sold and other interest-earning assets		143,143				743	2.08				138,622				912	2.63
Total interest-earning assets (FTE)		9,898,505				93,559	3.79				9,036,771				81,325	3.62
Non-interest-earning assets:
Allowance for loan losses		(61,163	)								(66,104	)
Cash and due from banks		104,812									94,920
Premises and equipment		192,906									182,609
Other assets (3)		569,435									560,357
Total assets	$	10,704,495								$	9,808,553
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,901,890				635	.13			$	1,755,726				444	.10
Money market		2,064,143				1,559	.30				1,866,913				1,206	.26
Savings		575,960				28	.02				497,973				30	.02
Time		1,274,009				1,136	.36				1,205,066				675	.23
Brokered time deposits		111,983				243	.87				187,481				68	.15
Total interest-bearing deposits		5,927,985				3,601	.24				5,513,159				2,423	.18
Federal funds purchased and other borrowings		37,317				101	1.09				11,000				93	3.40
Federal Home Loan Bank advances		594,815				1,464	.99				589,246				983	.67
Long-term debt		175,281				2,852	6.53				164,020				2,665	6.53
Total borrowed funds		807,413				4,417	2.19				764,266				3,741	1.97
Total interest-bearing liabilities		6,735,398				8,018	.48				6,277,425				6,164	.39
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,731,217									2,383,894
Other liabilities		114,873									96,067
Total liabilities		9,581,488									8,757,386
Shareholders' equity		1,123,007									1,051,167
Total liabilities and shareholders' equity	$	10,704,495								$	9,808,553
Net interest revenue (FTE)					$	85,541								$	75,161
Net interest-rate spread (FTE)							3.31	%								3.23	%
Net interest margin (FTE) (4)							3.47	%								3.35	%
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized gains of $6.58 million in 2017 and $12.3 million in 2016 are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
						2017									2016
	Average						Avg.			Average							Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance				Interest		Rate			Balance				Interest			Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	6,942,130			$	147,552	4.29	%		$	6,077,111			$	127,529		4.22	%
Taxable securities (3)		2,749,339				34,854	2.54				2,704,309				32,306		2.39
Tax-exempt securities (FTE) (1)(3)		49,125				1,041	4.24				28,590				516		3.61
Federal funds sold and other interest-earning assets		144,577				1,407	1.95				146,192				1,965		2.69
Total interest-earning assets (FTE)		9,885,171				184,854	3.76				8,956,202				162,316		3.64
Non-interest-earning assets:
Allowance for loan losses		(61,414	)								(67,289	)
Cash and due from banks		102,048									90,278
Premises and equipment		191,509									181,350
Other assets (3)		573,281									560,813
Total assets	$	10,690,595								$	9,721,354
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,930,624				1,232	.13			$	1,821,100				929		.10
Money market		2,064,792				2,985	.29				1,853,749				2,314		.25
Savings		568,339				55	.02				489,106				59		.02
Time		1,269,005				1,951	.31				1,232,378				1,492		.24
Brokered time deposits		105,199				436	.84				210,347				(107	)	(.10)
Total interest-bearing deposits		5,937,959				6,659	.23				5,606,680				4,687		.17
Federal funds purchased and other borrowings		28,225				141	1.01				22,953				180		1.58
Federal Home Loan Bank advances		637,728				2,894	.92				467,708				1,716		.74
Long-term debt		175,212				5,728	6.59				164,720				5,350		6.53
Total borrowed funds		841,165				8,763	2.10				655,381				7,246		2.22
Total interest-bearing liabilities		6,779,124				15,422	.46				6,262,061				11,933		.38
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,687,665									2,315,468
Other liabilities		115,808									101,694
Total liabilities		9,582,597									8,679,223
Shareholders' equity		1,107,998									1,042,131
Total liabilities and shareholders' equity	$	10,690,595								$	9,721,354
Net interest revenue (FTE)					$	169,432								$	150,383
Net interest-rate spread (FTE)							3.30	%									3.26	%
Net interest margin (FTE) (4)							3.46	%									3.38	%
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans.  The rate used was 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized gains of $638 thousand in 2017 and $7.28 million in 2016 are included in other assets for purposes of this presentation.
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

 

For more information:

Jefferson Harralson

Chief Financial Officer

(706) 781-2265

Jefferson_Harralson@ucbi.com

Source: United Community Banks, Inc.

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