Press Release Details

Entering Cycle on Strong Financial Footing

GREENVILLE, S.C., April 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported first quarter financial results, with solid year-over-year loan and deposit growth. United delivered net income of $31.9 million, pre-tax pre-provision income of $62.9 million, and built its allowance for credit losses with a $22.2 million provision for credit losses given the uncertain environment.  Diluted earnings per share were $0.40, a decrease of $0.15 or 27% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.41, also down 27% from last year. United’s return on assets (“ROA”) was 0.99% and its return on common equity was 7.9% for the quarter. On an operating basis, United’s ROA was 1.01% and its return on tangible common equity was 10.6%.

Chairman and CEO Lynn Harton stated, “While I am pleased to report a solid quarter in a difficult environment, I am most proud of how our employees are delivering for our customers during this public health crisis. We consider ourselves ‘Financial First Responders’ and feel privileged to take care of our customers in this time of significant stress. Among other things, we were able to help support our small business clients who have experienced financial hardship due to COVID-19 by offering loan deferrals as needed, and by participating in the Small Business Administration’s Paycheck Protection Program (“PPP”). As one of the largest Preferred SBA lenders in the Southeast, we mobilized our existing SBA team, as well as hundreds of additional United bankers to process applications as quickly as possible. As a result, our team was able to successfully process applications totaling more than $960 million and reserve funding for 6,918 small businesses as of April 16, 2020.

Harton continued, “We are focused on the safety of employees and customers, with 54% of our non-branch employees working from home, and all branches operating a drive-through only model with lobbies available by appointment. The investments we have made in our digital delivery channels are paying off with increased online account openings as well as increased web traffic, and digital and social engagement. Looking forward, based on much of what we are learning now, we have the potential to be even stronger with greater innovation and business growth opportunities.”

This quarter saw record core transaction growth with loans growing at a 6% annualized rate and total deposits up by 5% on an annualized basis. Increased purchased loan accretion drove United’s net interest margin 14 basis points higher in the quarter. Excluding purchased loan accretion, the net interest margin was down just 1 basis point. Total deposits were up $138 million over last quarter, with core transaction deposits up $238 million, or 13% annualized. This was mainly driven by demand deposit growth of $165 million.

Mr. Harton concluded, “I am also tremendously proud that for 2020, Forbes recognized United for the seventh consecutive year on its list of the 100 Best Banks in America. Additionally, this quarter United received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South, and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. These honors are remarkable and are only achieved through the dedication of our bankers to build a company where great people can build fulfilling careers through helping our customers reach their financial goals.”

First Quarter 2020 Financial Highlights:

• EPS decreased by 27% as compared to last year on both a GAAP and operating basis
• Return on assets of 0.99%, or 1.01% excluding merger-related and other charges
• Pre-tax pre-provision return on assets of 1.95%, or 1.98%, excluding merger-related charges
• Return on common equity of 7.9%
• Return on tangible common equity of 10.6%, excluding merger-related and other charges
• United adopted the CECL model in 1Q; the uncertain economic outlook necessitated a provision for credit losses of $22.2 million
• Loan production of $919 million compared to $782 million in Q1 2019
• Loan growth of 6% for the quarter on an annualized basis
• Core transaction deposits were up $238 million or 13% annualized, mainly driven by demand deposit growth of $165 million during the quarter
• Net interest margin of 4.07% was up 14 basis points compared to the fourth quarter, and down 3 basis points from a year ago
• Mortgage rate locks of $801 million, exceeding our previous quarterly record by 58%, and compared to $312 million a year ago
• Noninterest income was down $4.4 million on a linked quarter basis, as record mortgage rate locks and production were more than offset by a larger negative mortgage servicing rights mark-to-market
• Efficiency ratio of 56.15%, or 55.59% excluding merger-related and other charges
• Net charge-offs of $8.1 million, or 37 basis points as a percent of average loans, up 19 basis points from last quarter mainly due to a single commercial loan default totaling $6.4 million
• Nonperforming assets of 0.28% of total assets, which is flat compared to December 31, 2019
• Repurchased 826,482 shares at an average price of $25.14 in the quarter

Conference Call
United will hold a conference call, Wednesday, April 22, 2020, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 1559838. 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.

 

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
		2020				2019																First Quarter 2020 - 2019 Change
(in thousands, except per share data)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
INCOME SUMMARY
Interest revenue		$	136,547			$	136,419			$	140,615			$	139,156			$	136,516
Interest expense		17,941				19,781				21,277				21,372				20,882
Net interest revenue		118,606				116,638				119,338				117,784				115,634				3	%
Provision for credit losses		22,191				3,500				3,100				3,250				3,300
Noninterest income		25,814				30,183				29,031				24,531				20,968				23
Total revenue		122,229				143,321				145,269				139,065				133,302				(8	)
Expenses		81,538				81,424				82,924				81,813				76,084				7
Income before income tax expense		40,691				61,897				62,345				57,252				57,218				(29	)
Income tax expense		8,807				12,885				13,983				13,167				12,956				(32	)
Net income		31,884				49,012				48,362				44,085				44,262				(28	)
Merger-related and other charges		808				(74		)		2,605				4,087				739
Income tax benefit of merger-related and other charges		(182		)		17				(600		)		(940		)		(172		)
Net income - operating (1)		$	32,510			$	48,955			$	50,367			$	47,232			$	44,829			(27	)
Pre-tax pre-provision income (5)		$	62,882			$	65,397			$	65,445			$	60,502			$	60,518			4
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.40			$	0.61			$	0.60			$	0.55			$	0.55			(27	)
Diluted net income - operating (1)		0.41				0.61				0.63				0.59				0.56				(27	)
Cash dividends declared		0.18				0.18				0.17				0.17				0.16				13
Book value		20.80				20.53				20.16				19.65				18.93				10
Tangible book value (3)		16.52				16.28				15.90				15.38				14.93				11
Key performance ratios:
Return on common equity - GAAP (2)(4)		7.85		%		12.07		%		12.16		%		11.45		%		11.85		%
Return on common equity - operating (1)(2)(4)		8.01				12.06				12.67				12.27				12.00
Return on tangible common equity - operating (1)(2)(3)(4)		10.57				15.49				16.38				15.88				15.46
Return on assets - GAAP (4)		0.99				1.50				1.51				1.40				1.44
Return on assets - operating (1)(4)		1.01				1.50				1.58				1.50				1.45
Return on assets - pre-tax pre-provision (4)(5)		1.95				2.00				2.05				1.92				1.96
Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5)		1.98				2.00				2.13				2.05				1.99
Net interest margin (fully taxable equivalent) (4)		4.07				3.93				4.12				4.12				4.10
Efficiency ratio - GAAP		56.15				54.87				55.64				57.28				55.32
Efficiency ratio - operating (1)		55.59				54.92				53.90				54.42				54.78
Equity to total assets		12.54				12.66				12.53				12.25				12.06
Tangible common equity to tangible assets (3)		10.22				10.32				10.16				9.86				9.76
ASSET QUALITY
Nonperforming loans		$	36,208			$	35,341			$	30,832			$	26,597			$	23,624			53
Foreclosed properties		475				476				102				75				1,127				(58	)
Total nonperforming assets ("NPAs")		36,683				35,817				30,934				26,672				24,751				48
Allowance for credit losses - loans		81,905				62,089				62,514				62,204				61,642				33
Net charge-offs		8,114				3,925				2,723				2,438				3,130				159
Allowance for credit losses to loans		0.92		%		0.70		%		0.70		%		0.70		%		0.73		%
Net charge-offs to average loans (4)		0.37				0.18				0.12				0.11				0.15
NPAs to loans and foreclosed properties		0.41				0.41				0.35				0.30				0.29
NPAs to total assets		0.28				0.28				0.24				0.21				0.20
AVERAGE BALANCES ($ in millions)
Loans		$	8,829			$	8,890			$	8,836			$	8,670			$	8,430			5
Investment securities		2,520				2,486				2,550				2,674				2,883				(13	)
Earning assets		11,798				11,832				11,568				11,534				11,498				3
Total assets		12,944				12,946				12,681				12,608				12,509				3
Deposits		10,915				10,924				10,531				10,493				10,361				5
Shareholders’ equity		1,653				1,623				1,588				1,531				1,478				12
Common shares - basic (thousands)		79,340				79,659				79,663				79,673				79,807				(1	)
Common shares - diluted (thousands)		79,446				79,669				79,667				79,678				79,813				—
AT PERIOD END ($ in millions)
Loans		$	8,935			$	8,813			$	8,903			$	8,838			$	8,493			5
Investment securities		2,540				2,559				2,515				2,620				2,720				(7	)
Total assets		13,086				12,916				12,809				12,779				12,506				5
Deposits		11,035				10,897				10,757				10,591				10,534				5
Shareholders’ equity		1,641				1,636				1,605				1,566				1,508				9
Common shares outstanding (thousands)		78,284				79,014				78,974				79,075				79,035				(1	)

⁽¹⁾ Excludes merger-related and other charges which includes termination of pension plan in the third quarter of 2019, executive retirement charges in the second quarter of 2019 and amortization of certain executive change of control benefits. ⁽²⁾ Net income 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⁾ Excludes income tax expense and provision for credit losses.

 

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2020				2019
(in thousands, except per share data)		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
Expense reconciliation
Expenses (GAAP)		$	81,538			$	81,424			$	82,924			$	81,813			$	76,084
Merger-related and other charges		(808		)		74				(2,605		)		(4,087		)		(739		)
Expenses - operating		$	80,730			$	81,498			$	80,319			$	77,726			$	75,345
Net income to operating income reconciliation
Net income (GAAP)		$	31,884			$	49,012			$	48,362			$	44,085			$	44,262
Merger-related and other charges		808				(74		)		2,605				4,087				739
Income tax benefit of merger-related and other charges		(182		)		17				(600		)		(940		)		(172		)
Net income - operating		$	32,510			$	48,955			$	50,367			$	47,232			$	44,829
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)		$	31,884			$	49,012			$	48,362			$	44,085			$	44,262
Income tax expense		8,807				12,885				13,983				13,167				12,956
Provision for credit losses		22,191				3,500				3,100				3,250				3,300
Pre-tax pre-provision income		$	62,882			$	65,397			$	65,445			$	60,502			$	60,518
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.40			$	0.61			$	0.60			$	0.55			$	0.55
Merger-related and other charges, net of tax		0.01				—				0.03				0.04				0.01
Diluted income per common share - operating		$	0.41			$	0.61			$	0.63			$	0.59			$	0.56
Book value per common share reconciliation
Book value per common share (GAAP)		$	20.80			$	20.53			$	20.16			$	19.65			$	18.93
Effect of goodwill and other intangibles		(4.28		)		(4.25		)		(4.26		)		(4.27		)		(4.00		)
Tangible book value per common share		$	16.52			$	16.28			$	15.90			$	15.38			$	14.93
Return on tangible common equity reconciliation
Return on common equity (GAAP)		7.85		%		12.07		%		12.16		%		11.45		%		11.85		%
Merger-related and other charges, net of tax		0.16				(0.01		)		0.51				0.82				0.15
Return on common equity - operating		8.01				12.06				12.67				12.27				12.00
Effect of goodwill and other intangibles		2.56				3.43				3.71				3.61				3.46
Return on tangible common equity - operating		10.57		%		15.49		%		16.38		%		15.88		%		15.46		%
Return on assets reconciliation
Return on assets (GAAP)		0.99		%		1.50		%		1.51		%		1.40		%		1.44		%
Merger-related and other charges, net of tax		0.02				—				0.07				0.10				0.01
Return on assets - operating		1.01		%		1.50		%		1.58		%		1.50		%		1.45		%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)		0.99		%		1.50		%		1.51		%		1.40		%		1.44		%
Income tax expense		0.27				0.39				0.44				0.42				0.41
Provision for credit losses		0.69				0.11				0.10				0.10				0.11
Return on assets - pre-tax, pre-provision		1.95				2.00				2.05				1.92				1.96
Merger-related and other charges		0.03				—				0.08				0.13				0.03
Return on assets - pre-tax pre-provision, excluding merger-related and other charges		1.98		%		2.00		%		2.13		%		2.05		%		1.99		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		56.15		%		54.87		%		55.64		%		57.28		%		55.32		%
Merger-related and other charges		(0.56		)		0.05				(1.74		)		(2.86		)		(0.54		)
Efficiency ratio - operating		55.59		%		54.92		%		53.90		%		54.42		%		54.78		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.54		%		12.66		%		12.53		%		12.25		%		12.06		%
Effect of goodwill and other intangibles		(2.32		)		(2.34		)		(2.37		)		(2.39		)		(2.30		)
Tangible common equity to tangible assets		10.22		%		10.32		%		10.16		%		9.86		%		9.76		%

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2020				2019																Linked Quarter Change				Year over Year Change
(in millions)	First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,703			$	1,720			$	1,692			$	1,658			$	1,620			$	(17	)		$	83
Income producing commercial RE	2,065				2,008				1,934				1,939				1,867				57				198
Commercial & industrial	1,310				1,221				1,271				1,299				1,284				89				26
Commercial construction	959				976				1,001				983				866				(17		)		93
Equipment financing	761				745				729				674				606				16				155
Total commercial	6,798				6,670				6,627				6,553				6,243				128				555
Residential mortgage	1,128				1,118				1,121				1,108				1,064				10				64
Home equity lines of credit	668				661				669				675				684				7				(16		)
Residential construction	216				236				229				219				200				(20		)		16
Consumer	125				128				257				283				302				(3		)		(177		)
Total loans	$	8,935			$	8,813			$	8,903			$	8,838			$	8,493			$	122			$	442
LOANS BY MARKET
North Georgia	$	958			$	967			$	1,002			$	1,002			$	970			(9		)		(12		)
Atlanta	1,820				1,762				1,740				1,745				1,524				58				296
North Carolina	1,124				1,156				1,117				1,084				1,074				(32		)		50
Coastal Georgia	604				631				611				604				603				(27		)		1
Gainesville	235				246				246				244				243				(11		)		(8		)
East Tennessee	425				421				435				446				458				4				(33		)
South Carolina	1,774				1,708				1,705				1,674				1,674				66				100
Commercial Banking Solutions	1,995				1,922				1,916				1,884				1,766				73				229
Indirect auto	—				—				131				155				181				—				(181		)
Total loans	$	8,935			$	8,813			$	8,903			$	8,838			$	8,493			$	122			$	442

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		2020				2019
(in thousands)		First Quarter				Fourth Quarter				Third Quarter
NONACCRUAL LOANS
Owner occupied RE		$	10,405			$	10,544			$	8,430
Income producing RE		2,235				1,996				2,030
Commercial & industrial		3,169				2,545				2,625
Commercial construction		1,724				2,277				1,894
Equipment financing		2,439				3,141				1,974
Total commercial		19,972				20,503				16,953
Residential mortgage		12,458				10,567				9,475
Home equity lines of credit		3,010				3,173				3,065
Residential construction		540				939				597
Consumer		228				159				742
Total		$	36,208			$	35,341			$	30,832

 

		2020							2019
		First Quarter							Fourth Quarter							Third Quarter
(in thousands)		Net Charge-Offs				Net Charge-Offs to Average Loans (1)			Net Charge-Offs				Net Charge-Offs to Average Loans (1)			Net Charge-Offs				Net Charge-Offs to Average Loans (1)
NET CHARGE-OFFS BY CATEGORY
Owner occupied RE		$	(1,028	)		(0.24	)%		$	(208	)		(0.05	)%		$	(39	)		(0.01	)%
Income producing RE		270				0.05			95				0.02			431				0.09
Commercial & industrial		7,185				2.30			1,809				0.58			691				0.21
Commercial construction		(141		)		(0.06	)		(140		)		(0.06	)		(247		)		(0.10	)
Equipment financing		1,507				0.81			1,550				0.84			1,174				0.67
Total commercial		7,793				0.47			3,106				0.19			2,010				0.12
Residential mortgage		9				—			89				0.03			158				0.06
Home equity lines of credit		(83		)		(0.05	)		198				0.12			83				0.05
Residential construction		(12		)		(0.02	)		(24		)		(0.04	)		(5		)		(0.01	)
Consumer		407				1.30			556				0.90			477				0.70
Total		$	8,114			0.37			$	3,925			0.18			$	2,723			0.12
(1)  Annualized.

 

UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)		March 31, 2020				December 31, 2019
ASSETS
Cash and due from banks		$	155,008			$	125,844
Interest-bearing deposits in banks		365,494				389,362
Cash and cash equivalents		520,502				515,206
Debt securities available for sale		2,249,876				2,274,581
Debt securities held to maturity (fair value $301,595 and $287,904)		290,404				283,533
Loans held for sale at fair value		89,959				58,484
Loans and leases held for investment		8,935,424				8,812,553
Less allowance for credit losses - loans and leases		(81,905		)		(62,089		)
Loans and leases, net		8,853,519				8,750,464
Premises and equipment, net		214,744				215,976
Bank owned life insurance		200,778				202,664
Accrued interest receivable		31,570				32,660
Net deferred tax asset		30,715				34,059
Derivative financial instruments		82,668				35,007
Goodwill and other intangible assets, net		341,207				342,247
Other assets		179,924				171,135
Total assets		$	13,085,866			$	12,916,016
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	3,624,806			$	3,477,979
NOW and interest-bearing demand		2,391,976				2,461,895
Money market		2,277,052				2,230,628
Savings		732,209				706,467
Time		1,840,767				1,859,574
Brokered		168,116				160,701
Total deposits		11,034,926				10,897,244
Long-term debt		212,849				212,664
Derivative financial instruments		27,349				15,516
Accrued expenses and other liabilities		170,130				154,900
Total liabilities		11,445,254				11,280,324
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized;   78,283,544 and 79,013,729 shares issued and outstanding		78,284				79,014
Common stock issuable; 591,053 and 664,640 shares		10,534				11,491
Capital surplus		1,478,719				1,496,641
Retained earnings		54,206				40,152
Accumulated other comprehensive income		18,869				8,394
Total shareholders' equity		1,640,612				1,635,692
Total liabilities and shareholders' equity		$	13,085,866			$	12,916,016

 

UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited)
		Three Months Ended March 31,
(in thousands, except per share data)		2020				2019
Interest revenue:
Loans, including fees		$	118,063			$	115,259
Investment securities, including tax exempt of $1,523 and $1,169		17,394				20,818
Deposits in banks and short-term investments		1,090				439
Total interest revenue		136,547				136,516
Interest expense:
Deposits:
NOW and interest-bearing demand		2,978				3,609
Money market		4,531				4,132
Savings		35				32
Time		7,531				8,184
Deposits		15,075				15,957
Short-term borrowings		1				161
Federal Home Loan Bank advances		1				1,422
Long-term debt		2,864				3,342
Total interest expense		17,941				20,882
Net interest revenue		118,606				115,634
Provision for credit losses		22,191				3,300
Net interest revenue after provision for credit losses		96,415				112,334
Noninterest income:
Service charges and fees		8,638				8,453
Mortgage loan gains and other related fees		8,310				3,748
Brokerage fees		1,640				1,337
Gains from sales of other loans, net		1,674				1,303
Securities losses, net		—				(267		)
Other		5,552				6,394
Total noninterest income		25,814				20,968
Total revenue		122,229				133,302
Noninterest expenses:
Salaries and employee benefits		51,358				47,503
Communications and equipment		5,946				5,788
Occupancy		5,714				5,584
Advertising and public relations		1,274				1,286
Postage, printing and supplies		1,670				1,586
Professional fees		4,097				3,161
Lending and loan servicing expense		2,293				2,334
Outside services - electronic banking		1,832				1,609
FDIC assessments and other regulatory charges		1,484				1,710
Amortization of intangibles		1,040				1,293
Merger-related and other charges		808				546
Other		4,022				3,684
Total noninterest expenses		81,538				76,084
Net income before income taxes		40,691				57,218
Income tax expense		8,807				12,956
Net income		$	31,884			$	44,262
Net income available to common shareholders		$	31,641			$	43,947
Net income per common share:
Basic		$	0.40			$	0.55
Diluted		0.40				0.55
Weighted average common shares outstanding:
Basic		79,340				79,807
Diluted		79,446				79,813

 

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended March 31,

 

		2020											2019
(dollars in thousands, fully taxable equivalent (FTE))		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)		$	8,828,880			$	117,796			5.37	%		$	8,429,976			$	115,347			5.55	%
Taxable securities (3)		2,357,635				15,871				2.69			2,712,995				19,649				2.90
Tax-exempt securities (FTE) (1)(3)		162,253				2,045				5.04			169,702				1,570				3.70
Federal funds sold and other interest-earning assets		448,775				1,632				1.46			185,623				618				1.33
Total interest-earning assets (FTE)		11,797,543				137,344				4.68			11,498,296				137,184				4.83
Noninterest-earning assets:
Allowance for credit losses		(69,777		)									(61,784		)
Cash and due from banks		128,254											123,801
Premises and equipment		219,243											216,611
Other assets (3)		868,452											731,628
Total assets		$	12,943,715										$	12,508,552
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	2,412,733			2,978				0.50			$	2,286,619			3,609				0.64
Money market		2,340,723				4,531				0.78			2,098,052				4,132				0.80
Savings		712,110				35				0.02			672,197				32				0.02
Time		1,841,552				7,250				1.58			1,627,584				5,336				1.33
Brokered time deposits		80,821				281				1.40			482,048				2,848				2.40
Total interest-bearing deposits		7,387,939				15,075				0.82			7,166,500				15,957				0.90
Federal funds purchased and other borrowings		396				1				1.02			21,549				161				3.03
Federal Home Loan Bank advances		165				1				2.44			223,945				1,422				2.58
Long-term debt		212,762				2,864				5.41			261,971				3,342				5.17
Total borrowed funds		213,323				2,866				5.40			507,465				4,925				3.94
Total interest-bearing liabilities		7,601,262				17,941				0.95			7,673,965				20,882				1.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,527,385											3,194,401
Other liabilities		162,187											162,213
Total liabilities		11,290,834											11,030,579
Shareholders' equity		1,652,881											1,477,973
Total liabilities and shareholders' equity		$	12,943,715										$	12,508,552
Net interest revenue (FTE)						$	119,403										$	116,302
Net interest-rate spread (FTE)										3.73	%										3.73	%
Net interest margin (FTE) (4)										4.07	%										4.10	%

⁽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 26%, 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 on which 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 $52.9 million in 2020 and unrealized losses of $25.9 million in 2019 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.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $13.1 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, Forbes magazine included United in its inaugural list of the World’s Best Banks, and in 2020, recognized United for the seventh consecutive year on its list of the 100 Best Banks in America.  United Community Bank also received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. Additional information about UCBI and the Bank can be found at www.ucbi.com.

Non-GAAP Financial Measures
This press 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,” “pre-tax pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets -  pre-tax pre-provision, excluding merger-related and other charges,” “return on assets – pre-tax pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible 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.

For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com

 

Source: United Community Banks, Inc.