United Community Banks, Inc. Reports First Quarter Results

Press Release Details

Apr 21, 2020

United Community Banks, Inc. Reports First Quarter Results

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

UCBI Logo 2014__Inch.jpg

 

Source: United Community Banks, Inc.