United Community Banks, Inc. Reports Fourth Quarter Results

Press Release Details

Jan 19, 2021

United Community Banks, Inc. Reports Fourth Quarter Results

EPS of $0.66, Return on Assets of 1.30% and Return on Common Equity of 12.36%

GREENVILLE, S.C., Jan. 19, 2021 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported fourth quarter financial results, including solid year-over-year loan and core deposit growth and strong profitability. For the quarter, United’s net income was $59.5 million and pre-tax pre-provision income was $80.3 million. Diluted earnings per share of $0.66 for the quarter represented an increase of $0.05 or 8%, from a year ago. Compared to the third quarter, diluted earnings per share were up by $0.14 or 27%. On an operating basis, which excludes merger-related and other charges, diluted earnings per share were $0.68, up $0.07 or 11% from last year and $0.13 per share or 24% compared to the third quarter. United’s GAAP return on assets (ROA) was 1.30% and its return on common equity was 12.4% for the quarter. On an operating basis, United’s ROA was 1.34% and its return on tangible common equity was 16.2%. On a pre-tax, pre-provision basis, and excluding merger-related and other charges, ROA was 1.82%.  

Included in the quarter’s results was a discretionary $8.5 million contribution to the United Community Bank Foundation. This contribution lowered operating EPS by $0.07 and operating ROA by 15 basis points.

Chairman and CEO Lynn Harton stated, “While our markets continue to be impacted by the pandemic, I am proud of the ongoing commitment to service by our employees and am encouraged by the resilience of our customers. The strength of our balance sheet and the diversity of our business model enabled us to continue to post solid financial results in a challenging environment. Most importantly, our teams continued to exhibit outstanding leadership. During the year, we have been able to add new teams of bankers, expand our footprint into new, fast-growing markets, and increase our product offerings. Focused efforts by our teams have led to meaningful high-quality growth in loans, deposits, and fee income despite economic headwinds.”

Total loans decreased by $428 million during the quarter—primarily driven by the forgiveness of $671 million in SBA Paycheck Protection Program (PPP) loans. Excluding the effect of PPP loans, core organic loan growth was 8% annualized. Core transaction deposits grew by $369 million during the quarter, or 13% annualized, and United’s cost of deposits decreased by 8 basis points to 0.17%. The net interest margin increased 28 basis points from the third quarter due mainly to the accelerated recognition of PPP fees, as well as purchased loan accretion. Excluding these items, the net interest margin decreased by approximately 10 basis points from the third quarter due to a combination of factors, including lower overall market rates and increased liquidity.

Mr. Harton concluded, “I am pleased by our performance both this quarter and this past year despite the challenging circumstances. I am optimistic going into 2021 knowing that we are well positioned to take advantage of new business opportunities. In October, and for the fourth consecutive year, United was again named one of the Best Banks to Work for in 2020 by American Banker. This honor demonstrates our commitment to employee development and to fostering a strong culture. Our employees continue to lead in supporting our customers and communities, which is directly reflected in our performance and success.”

2020 Financial Highlights:

  • Full year EPS of $1.91, a decrease of 17% compared to last year on both a GAAP and operating basis
  • Return on assets of 1.04%, or 1.07% on an operating basis
  • Pre-tax, pre-provision return on assets of 1.85%, or 1.90% on an operating basis
  • Return on common equity of 9.3%
  • Return on tangible common equity of 12.2% on an operating basis
  • Completed the merger with Three Shores Bancorporation and its bank subsidiary Seaside National Bank & Trust (Seaside) on July 1
  • A provision for credit losses of $80.4 million compared to $13.2 million in 2019, partly due to the adoption of the Current Expected Credit Losses (CECL) model in the first quarter
  • Processed nearly 11,000 PPP applications, totaling $1.3 billion in new loans
  • Loan growth of $2.6 billion with $1.4 billion attributable to loans acquired from Seaside and core loan growth (excluding PPP loans) of 8% for the year
  • Core transaction deposits were up $4.0 billion with $1.3 billion attributable to Seaside and remainder in organic growth, which represents a 36% core growth rate for the year
  • Net interest margin of 3.55%, which was down 52 basis points from last year due to a number of factors, including the low rate environment, the Seaside acquisition, and increasing balance sheet liquidity
  • Record mortgage rate locks of $3.3 billion compared to $1.6 billion a year ago
  • Noninterest income was up $49.6 million or 47%, excluding net securities gains; Seaside contributed nearly $4.7 million of the increase and mortgage loan gains and related fees were up $48.9 million, primarily driven by record mortgage rate locks and production
  • Efficiency ratio of 55.7%, or 54.6% on an operating basis
  • Net charge-offs of $18.3 million, or 17 basis points as a percent of average loans, up 3 basis points from 2019
  • Completed a public offering of $100 million aggregate of 6.875% Non-Cumulative Perpetual Preferred Stock and $100 million aggregate principal amount of 5.000% Fixed-to-Floating Senior Notes due 2030
  • Established the United Community Bank Foundation with $10.0 million

Fourth Quarter 2020 Financial Highlights:

  • Net income of $59.5 million and pre-tax pre-provision income of $80.3 million
  • EPS increased by 8% compared to last year on a GAAP basis and 11% on an operating basis; compared to third quarter, EPS increased by 27% on a GAAP basis and 24% on an operating basis
  • Return on assets of 1.30%, or 1.34% on an operating basis
  • Pre-tax, pre-provision return on assets of 1.77%, or 1.82% on an operating basis
  • Return on common equity of 12.4%
  • Return on tangible common equity of 16.2% on an operating basis
  • A provision for credit losses of $2.9 million, which increased the allowance for loan losses to 1.20% (1.28%, excluding PPP loans) from 1.14% in the third quarter
  • Loan production of $1.1 billion, resulting in core loan growth of 8%, annualized for the quarter, excluding the impact of $671 million in PPP loans being forgiven
  • Core transaction deposits were up $369 million, which represents a 13% annualized growth rate for the quarter
  • Net interest margin of 3.55% was up 28 basis points from the third quarter, mainly due to the impact of accelerated PPP fees during the quarter
  • Record mortgage closings of $609 million and mortgage rate locks of $792 million, compared to $333 million and $411 million, respectively, a year ago
  • Noninterest income was down $6.6 million on a linked quarter basis, excluding net securities gains, primarily driven by lower mortgage loan gains and related fees
  • Noninterest expenses increased by $10.5 million compared to the third quarter mostly due to funding for the United Community Bank Foundation of $8.5 million
  • Efficiency ratio of 56.7%, or 55.4% on an operating basis
  • Net charge-offs of $1.5 million, or 5 basis points as a percent of average loans, down 4 basis points from the third quarter
  • Nonperforming assets of 0.35% of total assets, up 6 basis points compared to September 30, 2020
  • Total loan deferrals of $71 million or 0.6% of the total loan portfolio compared to $365 million or 3% in the third quarter
  • $8.5 million of funding for the United Community Bank Foundation for charities and causes throughout the footprint, adding to a $0.5 million contribution in the third quarter
  • Plan for operational conversion of Seaside in the first quarter of 2021

Conference Call

United will hold a conference call, Wednesday, January 20, 2021, 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 5083638. 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.                  
Financial Highlights                  
Selected Financial Information                                    
    2020   2019   Fourth
Quarter 
  
  For the Twelve Months Ended
December 31,
  YTD 2020-  
(in thousands, except per share data)   Fourth
Quarter
  Third
Quarter
  Second
Quarter
  First
Quarter
  Fourth
Quarter
  2020- 2019
Change
  
  2020   2019   2019
Change
  
INCOME SUMMARY                                    
Interest revenue   $ 156,071       $ 141,773       $ 123,605       $ 136,547       $ 136,419           $ 557,996       $ 552,706        
Interest expense   10,676       13,319       14,301       17,941       19,781           56,237       83,312        
Net interest revenue   145,395       128,454       109,304       118,606       116,638       25   %   501,759       469,394       7   %
Provision for credit losses   2,907       21,793       33,543       22,191       3,500           80,434       13,150        
Noninterest income   41,375       48,682       40,238       25,814       30,183       37       156,109       104,713       49    
Total revenue   183,863       155,343       115,999       122,229       143,321       28       577,434       560,957       3    
Expenses   106,490       95,981       83,980       81,538       81,424       31       367,989       322,245       14    
Income before income tax expense   77,373       59,362       32,019       40,691       61,897           209,445       238,712        
Income tax expense   17,871       11,755       6,923       8,807       12,885           45,356       52,991        
Net income   59,502       47,607       25,096       31,884       49,012           164,089       185,721        
Merger-related and other charges   2,452       3,361       397       808       (74 )         7,018       7,357        
Income tax benefit of merger-related and other charges   (552 )     (519 )     (87 )     (182 )     17           (1,340 )     (1,695 )      
Net income - operating (1)   $ 61,402        $ 50,449        $ 25,406        $ 32,510        $ 48,955        25       $ 169,767        $ 191,383        (11 )  
                                     
Pre-tax pre-provision income (5)   $ 80,280       $ 81,155       $ 65,562       $ 62,882       $ 65,397       23       $ 289,879       $ 251,862       15    
                                     
PERFORMANCE MEASURES                                    
Per common share:                                    
Diluted net income - GAAP   $ 0.66       $ 0.52       $ 0.32       $ 0.40       $ 0.61       8       $ 1.91       $ 2.31       (17 )  
Diluted net income - operating (1)   0.68       0.55       0.32       0.41       0.61       11       1.98       2.38       (17 )  
Common stock cash dividends declared   0.18       0.18       0.18       0.18       0.18             0.72       0.68       6    
Book value   21.90       21.45       21.22       20.80       20.53       7       21.90       20.53       7    
Tangible book value (3)   17.56       17.09       16.95       16.52       16.28       8       17.56       16.28       8    
Key performance ratios:                                    
Return on common equity - GAAP (2)(4)   12.36   %   10.06   %   6.17   %   7.85   %   12.07   %       9.25   %   11.89   %    
Return on common equity - operating (1)(2)(4)   12.77       10.69       6.25       8.01       12.06           9.58       12.25        
Return on tangible common equity - operating (1)(2)(3)(4)   16.23       13.52       8.09       10.57       15.49           12.24       15.81        
Return on assets - GAAP (4)   1.30       1.07       0.71       0.99       1.50           1.04       1.46        
Return on assets - operating (1)(4)   1.34       1.14       0.72       1.01       1.50           1.07       1.51        
Return on assets -pre-tax pre-provision (4)(5)   1.77       1.86       1.86       1.95       2.00           1.85       1.99        
Return on assets -pre-tax pre-provision, excluding
merger related and other charges (1)(4)(5)
  1.82       1.93       1.87       1.98       2.00           1.90       2.04        
Net interest margin (fully taxable equivalent) (4)   3.55       3.27       3.42       4.07       3.93           3.55       4.07        
Efficiency ratio - GAAP   56.73       54.14       55.86       56.15       54.87           55.71       55.77        
Efficiency ratio - operating (1)   55.42       52.24       55.59       55.59       54.92           54.64       54.50        
Equity to total assets   11.29       11.47       11.81       12.54       12.66           11.29       12.66        
Tangible common equity to tangible assets (3)   8.81       8.89       9.12       10.22       10.32           8.81       10.32        
ASSET QUALITY                                    
Nonperforming loans   $ 61,599       $ 49,084       $ 48,021       $ 36,208       $ 35,341       74       $ 61,599       $ 35,341       74    
Foreclosed properties   647       953       477       475       476       36       647       476       36    
Total nonperforming assets (“NPAs”)   62,246       50,037       48,498       36,683       35,817       74       62,246       35,817       74    
Allowance for credit losses – loans and leases   137,010       134,256       103,669       81,905       62,089       121       137,010       62,089       121    
Net charge-offs   1,515       2,538       6,149       8,114       3,925       (61 )     18,316       12,216       50    
Allowance for credit losses – loans and leases to loans   1.20   %   1.14   %   1.02   %   0.92   %   0.70   %       1.20   %   0.70   %    
Net charge-offs to average loans (4)   0.05       0.09       0.25       0.37       0.18           0.17       0.14        
NPAs to loans and foreclosed properties   0.55       0.42       0.48       0.41       0.41           0.55       0.41        
NPAs to total assets   0.35       0.29       0.32       0.28       0.28           0.35       0.28        
AVERAGE BALANCES ($ in millions)                                    
Loans   $ 11,595       $ 11,644       $ 9,773       $ 8,829       $ 8,890       30       $ 10,467       $ 8,708       20    
Investment securities   3,326       2,750       2,408       2,520       2,486       34       2,752       2,647       4    
Earning assets   16,394       15,715       12,958       11,798       11,832       39       14,226       11,609       23    
Total assets   17,698       17,013       14,173       12,944       12,946       37       15,467       12,687       22    
Deposits   15,057       14,460       12,071       10,915       10,924       38       13,135       10,579       24    
Shareholders’ equity   1,994       1,948       1,686       1,653       1,623       23       1,821       1,556       17    
Common shares - basic (thousands)   87,258       87,129       78,920       79,340       79,659       10       83,184       79,700       4    
Common shares - diluted (thousands)   87,333       87,205       78,924       79,446       79,669       10       83,248       79,708       4    
AT PERIOD END ($ in millions)                                    
Loans   $ 11,371       $ 11,799       $ 10,133       $ 8,935       $ 8,813       29       $ 11,371       $ 8,813       29    
Investment securities   3,645       3,089       2,432       2,540       2,559       42       3,645       2,559       42    
Total assets   17,794       17,153       15,005       13,086       12,916       38       17,794       12,916       38    
Deposits   15,232       14,603       12,702       11,035       10,897       40       15,232       10,897       40    
Shareholders’ equity   2,008       1,967       1,772       1,641       1,636       23       2,008       1,636       23    
Common shares outstanding (thousands)   86,675       86,611       78,335       78,284       79,014       10       86,675       79,014       10    

(1) Excludes merger-related and other charges. (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.                    
Selected Financial Information                    
For the Years Ended December 31,                    
(in thousands, except per share data)   2020   2019   2018   2017   2016
INCOME SUMMARY                    
Interest revenue   $ 557,996       $ 552,706       $ 500,080       $ 389,720       $ 335,020    
Interest expense   56,237       83,312       61,330       33,735       25,236    
Net interest revenue   501,759       469,394       438,750       355,985       309,784    
Provision for credit losses   80,434       13,150       9,500       3,800       (800 )  
Noninterest income   156,109       104,713       92,961       88,260       93,697    
Total revenue   577,434       560,957       522,211       440,445       404,281    
Expenses   367,989       322,245       306,285       267,611       241,289    
Income before income tax expense   209,445       238,712       215,926       172,834       162,992    
Income tax expense   45,356       52,991       49,815       105,013       62,336    
Net income   164,089       185,721       166,111       67,821       100,656    
Merger-related and other charges   7,018       7,357       7,345       14,662       8,122    
Income tax benefit of merger-related and other charges   (1,340 )     (1,695 )     (1,494 )     (3,745 )     (3,074 )  
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act                     38,199          
Impairment of deferred tax asset on cancelled non-qualified stock options                           976    
Release of disproportionate tax effects lodged in OCI                     3,400          
Net income - operating (1)   $ 169,767        $ 191,383        $ 171,962        $ 120,337        $ 106,680     
                     
Pre-tax pre-provision income (4)   $ 289,879       $ 251,862       $ 225,426       $ 176,634       $ 162,192    
                     
PERFORMANCE MEASURES                    
Per common share:                    
Diluted net income - GAAP   $ 1.91       $ 2.31       $ 2.07       $ 0.92       $ 1.40    
Diluted net income - operating (1)   1.98       2.38       2.14       1.63       1.48    
Common stock cash dividends declared   0.72       0.68       0.58       0.38       0.30    
Book value   21.90       20.53       18.24       16.67       15.06    
Tangible book value (3)   17.56       16.28       14.24       13.65       12.95    
Key performance ratios:                    
Return on common equity - GAAP (2)   9.25   %   11.89   %   11.60   %   5.67   %   9.41   %
Return on common equity - operating (1)(2)   9.58       12.25       12.01       10.07       9.98    
Return on tangible common equity - operating (1)(2)(3)   12.24       15.81       15.69       12.02       11.86    
Return on assets - GAAP   1.04       1.46       1.35       0.62       1.00    
Return on assets - operating (1)   1.07       1.51       1.40       1.09       1.06    
Return on assets -pre-tax pre-provision (4)   1.85       1.99       1.84       1.60       1.61    
Return on assets -pre-tax pre-provision, excluding merger related and other charges (1)(5)   1.90       2.04       1.89       1.74       1.69    
Net interest margin (fully taxable equivalent)   3.55       4.07       3.91       3.52       3.36    
Efficiency ratio - GAAP   55.71       55.77       57.31       59.95       59.80    
Efficiency ratio - operating (1)   54.64       54.50       55.94       56.67       57.78    
Equity to total assets   11.29       12.66       11.59       10.94       10.05    
Tangible common equity to tangible assets (3)   8.81       10.32       9.29       9.14       8.77    
ASSET QUALITY                    
Nonperforming loans   $ 61,599       $ 35,341       $ 23,778       $ 23,658       $ 21,539    
Foreclosed properties   647       476       1,305       3,234       7,949    
Total nonperforming assets (NPAs)   62,246       35,817       25,083       26,892       29,488    
Allowance for credit losses – loans and leases   137,010       62,089       61,203       58,914       61,422    
Net charge-offs   18,316       12,216       6,113       5,998       6,766    
Allowance for credit losses – loans and leases to loans   1.20   %   0.70   %   0.73   %   0.76   %   0.89   %
Net charge-offs to average loans   0.17       0.14       0.07       0.08       0.11    
NPAs to loans and foreclosed properties   0.55       0.41       0.30       0.35       0.43    
NPAs to total assets   0.35       0.28       0.20       0.23       0.28    
AVERAGE BALANCES ($ in millions)                    
Loans   $ 10,467       $ 8,708       $ 8,170       $ 7,150       $ 6,413    
Investment securities   2,752       2,647       2,899       2,847       2,691    
Earning assets   14,226       11,609       11,282       10,162       9,257    
Total assets   15,467       12,687       12,284       11,015       10,054    
Deposits   13,135       10,579       10,000       8,950       8,177    
Shareholders’ equity   1,821       1,556       1,380       1,180       1,059    
Common shares - basic (thousands)   83,184       79,700       79,662       73,247       71,910    
Common shares - diluted (thousands)   83,248       79,708       79,671       73,259       71,915    
AT PERIOD END ($ in millions)                    
Loans   $ 11,371       $ 8,813       $ 8,383       $ 7,736       $ 6,921    
Investment securities   3,645       2,559       2,903       2,937       2,762    
Total assets   17,794       12,916       12,573       11,915       10,709    
Deposits   15,232       10,897       10,535       9,808       8,638    
Shareholders’ equity   2,008       1,636       1,458       1,303       1,076    
Common shares outstanding (thousands)   86,675       79,014       79,234       77,580       70,899    

(1) Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, 2019 executive retirement charges and termination of pension plan, the 2017 impact of remeasurement of United’s deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, and a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Excludes income tax expense and provision for credit losses.

                     
UNITED COMMUNITY BANKS, INC.                    
Non-GAAP Performance Measures Reconciliation                    
Selected Financial Information- Quarterly   2020   2019
(in thousands, except per share data)   Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter
Expense reconciliation                    
Expenses (GAAP)   $ 106,490       $ 95,981       $ 83,980       $ 81,538       $ 81,424    
Merger-related and other charges   (2,452 )     (3,361 )     (397 )     (808 )     74    
Expenses - operating   $ 104,038       $ 92,620       $ 83,583       $ 80,730       $ 81,498    
                     
Net income to operating income reconciliation                    
Net income (GAAP)   $ 59,502       $ 47,607       $ 25,096       $ 31,884       $ 49,012    
Merger-related and other charges   2,452       3,361       397       808       (74 )  
Income tax benefit of merger-related and other charges   (552 )     (519 )     (87 )     (182 )     17    
Net income - operating   $ 61,402       $ 50,449       $ 25,406       $ 32,510       $ 48,955    
                     
Net income to pre-tax pre-provision income reconciliation                    
Net income (GAAP)   59,502       47,607       25,096       31,884       49,012    
Income tax expense   17,871       11,755       6,923       8,807       12,885    
Provision for credit losses   2,907       21,793       33,543       22,191       3,500    
Pre-tax pre-provision income   $ 80,280       $ 81,155       $ 65,562       $ 62,882       $ 65,397    
                     
Diluted income per common share reconciliation                    
Diluted income per common share (GAAP)   $ 0.66       $ 0.52       $ 0.32       $ 0.40       $ 0.61    
Merger-related and other charges   0.02       0.03             0.01          
Diluted income per common share - operating   $ 0.68       $ 0.55       $ 0.32       $ 0.41       $ 0.61    
                     
Book value per common share reconciliation                    
Book value per common share (GAAP)   $ 21.90       $ 21.45       $ 21.22       $ 20.80       $ 20.53    
Effect of goodwill and other intangibles   (4.34 )     (4.36 )     (4.27 )     (4.28 )     (4.25 )  
Tangible book value per common share   $ 17.56       $ 17.09       $ 16.95       $ 16.52       $ 16.28    
                     
Return on tangible common equity reconciliation                    
Return on common equity (GAAP)   12.36   %   10.06   %   6.17   %   7.85   %   12.07   %
Merger-related and other charges   0.41       0.63       0.08       0.16       (0.01 )  
Return on common equity - operating   12.77       10.69       6.25       8.01       12.06    
Effect of goodwill and other intangibles   3.46       2.83       1.84       2.56       3.43    
Return on tangible common equity - operating   16.23   %   13.52   %   8.09   %   10.57   %   15.49   %
                     
Return on assets reconciliation                    
Return on assets (GAAP)   1.30   %   1.07   %   0.71   %   0.99   %   1.50   %
Merger-related and other charges   0.04       0.07       0.01       0.02          
Return on assets - operating   1.34   %   1.14   %   0.72   %   1.01   %   1.50   %
                     
Return on assets to return on assets- pre-tax pre-provision reconciliation                    
Return on assets (GAAP)   1.30   %   1.07   %   0.71   %   0.99   %   1.50   %
Income tax expense   0.40       0.28       0.20       0.27       0.39    
Provision for credit losses   0.07       0.51       0.95       0.69       0.11    
Return on assets - pre-tax pre-provision   1.77       1.86       1.86       1.95       2.00    
Merger-related and other charges   0.05       0.07       0.01       0.03          
Return on assets - pre-tax pre-provision, excluding merger-related and other charges   1.82   %   1.93   %   1.87   %   1.98   %   2.00   %
                     
Efficiency ratio reconciliation                    
Efficiency ratio (GAAP)   56.73   %   54.14   %   55.86   %   56.15   %   54.87   %
Merger-related and other charges   (1.31 )     (1.90 )     (0.27 )     (0.56 )     0.05    
Efficiency ratio - operating   55.42   %   52.24   %   55.59   %   55.59   %   54.92   %
                     
Tangible common equity to tangible assets reconciliation                    
Equity to total assets (GAAP)   11.29   %   11.47   %   11.81   %   12.54   %   12.66   %
Effect of goodwill and other intangibles   (1.94 )     (2.02 )     (2.05 )     (2.32 )     (2.34 )  
Effect of preferred equity   (0.54 )     (0.56 )     (0.64 )              
Tangible common equity to tangible assets   8.81   %   8.89   %   9.12   %   10.22   %   10.32   %

 

UNITED COMMUNITY BANKS, INC.                    
Non-GAAP Performance Measures Reconciliation                    
Selected Financial Information- Annual   For the Twelve Months Ended December 31,
(in thousands, except per share data)   2020   2019   2018   2017   2016
Expense reconciliation                    
Expenses (GAAP)   $ 367,989       $ 322,245       $ 306,285       $ 267,611       $ 241,289    
Merger-related and other charges   (7,018 )     (7,357 )     (7,345 )     (14,662 )     (8,122 )  
Expenses - operating   $ 360,971       $ 314,888       $ 298,940       $ 252,949       $ 233,167    
                     
Net income reconciliation                    
Net income (GAAP)   $ 164,089       $ 185,721       $ 166,111       $ 67,821       $ 100,656    
Merger-related and other charges   7,018       7,357       7,345       14,662       8,122    
Income tax benefit of merger-related and other charges   (1,340 )     (1,695 )     (1,494 )     (3,745 )     (3,074 )  
Impact of tax reform on remeasurement of deferred tax asset                     38,199          
Impairment of deferred tax asset on canceled non-qualified stock options                           976    
Release of disproportionate tax effects lodged in OCI                     3,400          
Net income - operating   $ 169,767       $ 191,383       $ 171,962       $ 120,337       $ 106,680    
                     
Net income to pre-tax pre-provision income reconciliation                    
Net income (GAAP)   $ 164,089       $ 185,721       $ 166,111       $ 67,821       $ 100,656    
Income tax expense   45,356       52,991       49,815       105,013       62,336    
Provision for credit losses   80,434       13,150       9,500       3,800       (800 )  
Pre-tax pre-provision income   $ 289,879       $ 251,862       $ 225,426       $ 176,634       $ 162,192    
                     
Diluted income per common share reconciliation                    
Diluted income per common share (GAAP)   $ 1.91       $ 2.31       $ 2.07       $ 0.92       $ 1.40    
Merger-related and other charges   0.07       0.07       0.07       0.14       0.07    
Impact of tax reform on remeasurement of deferred tax asset                     0.52          
Impairment of deferred tax asset on canceled non-qualified stock options                           0.01    
Release of disproportionate tax effects lodged in OCI                     0.05          
Diluted income per common share - operating   $ 1.98       $ 2.38       $ 2.14       $ 1.63       $ 1.48    
                     
Book value per common share reconciliation                    
Book value per common share (GAAP)   $ 21.90       $ 20.53       $ 18.24       $ 16.67       $ 15.06    
Effect of goodwill and other intangibles   (4.34 )     (4.25 )     (4.00 )     (3.02 )     (2.11 )  
Tangible book value per common share   $ 17.56       $ 16.28       $ 14.24       $ 13.65       $ 12.95    
                     
Return on tangible common equity reconciliation                    
Return on common equity (GAAP)   9.25   %   11.89   %   11.60   %   5.67   %   9.41   %
Merger-related and other charges   0.33       0.36       0.41       0.92       0.48    
Impact of tax reform on remeasurement of deferred tax asset                     3.20          
Impairment of deferred tax asset on canceled non-qualified stock options                           0.09    
Release of disproportionate tax effects lodged in OCI                     0.28          
Return on common equity - operating   9.58       12.25       12.01       10.07       9.98    
Effect of goodwill and other intangibles   2.66       3.56       3.68       1.95       1.88    
Return on tangible common equity - operating   12.24   %   15.81   %   15.69   %   12.02   %   11.86   %
                     
Return on assets reconciliation                    
Return on assets (GAAP)   1.04   %   1.46   %   1.35   %   0.62   %   1.00   %
Merger-related and other charges   0.03       0.05       0.05       0.09       0.05    
Impact of tax reform on remeasurement of deferred tax asset                     0.35          
Impairment of deferred tax asset on canceled non-qualified stock options                           0.01    
Release of disproportionate tax effects lodged in OCI                     0.03          
Return on assets - operating   1.07   %   1.51   %   1.40   %   1.09   %   1.06   %
                     
Return on assets to return on assets - pre-tax pre-provision reconciliation                    
Return on assets (GAAP)   1.04   %   1.46   %   1.35   %   0.62   %   1.00   %
Income tax expense   0.29       0.43       0.41       0.95       0.62    
Provision for credit losses   0.52       0.10       0.08       0.03       (0.01 )  
Return on assets - pre-tax pre-provision   1.85       1.99       1.84       1.60       1.61    
Merger-related and other charges   0.05       0.05       0.05       0.14       0.08    
Return on assets - pre-tax pre-provision   1.90   %   2.04   %   1.89   %   1.74   %   1.69   %
                     
Efficiency ratio reconciliation                    
Efficiency ratio (GAAP)   55.71   %   55.77   %   57.31   %   59.95   %   59.80   %
Merger-related and other charges   (1.07 )     (1.27 )     (1.37 )     (3.28 )     (2.02 )  
Efficiency ratio - operating   54.64   %   54.50   %   55.94   %   56.67   %   57.78   %
                     
Tangible common equity to tangible assets reconciliation                    
Equity to assets (GAAP)   11.29   %   12.66   %   11.59   %   10.94   %   10.05   %
Effect of goodwill and other intangibles   (1.94 )     (2.34 )     (2.30 )     (1.80 )     (1.28 )  
Effect of preferred equity   (0.54 )                          
Tangible common equity to assets   8.81   %   10.32   %   9.29   %   9.14   %   8.77   %

 

UNITED COMMUNITY BANKS, INC.                        
Financial Highlights                        
Loan Portfolio Composition at Period-End                                    
  2020   2019   Linked   Year over
(in millions) Fourth
Quarter
  Third
Quarter
  Second
Quarter
  First
Quarter
  Fourth
Quarter
  Quarter 
Change
  Year
Change
LOANS BY CATEGORY                          
Owner occupied commercial RE $ 2,090     $ 2,009     $ 1,759     $ 1,703     $ 1,720     $ 81       $ 370    
Income producing commercial RE 2,541     2,493     2,178     2,065     2,008     48       533    
Commercial & industrial 1,853     1,788     1,219     1,310     1,221     65       632    
Paycheck protection program 646     1,317     1,095             (671 )     646    
Commercial construction 967     987     946     959     976     (20 )     (9 )  
Equipment financing 864     823     779     761     745     41       119    
Total commercial 8,961     9,417     7,976     6,798     6,670     (456 )     2,291    
Residential mortgage 1,285     1,270     1,152     1,128     1,118     15       167    
Home equity lines of credit 697     707     654     668     661     (10 )     36    
Residential construction 281     257     230     216     236     24       45    
Consumer 147     148     121     125     128     (1 )     19    
Total loans $ 11,371     $ 11,799     $ 10,133     $ 8,935     $ 8,813     $ (428 )     $ 2,558    
                           
LOANS BY MARKET                          
North Georgia $ 955     $ 945     $ 951     $ 958     $ 967     $ 10       $ (12 )  
Atlanta 1,889     1,853     1,852     1,820     1,762     36       127    
North Carolina 1,281     1,246     1,171     1,124     1,156     35       125    
Coastal Georgia 617     614     618     604     631     3       (14 )  
Gainesville 224     229     233     235     246     (5 )     (22 )  
East Tennessee 415     420     433     425     421     (5 )     (6 )  
South Carolina 1,947     1,870     1,778     1,774     1,708     77       239    
Florida 1,435     1,453                 (18 )     1,435    
Commercial Banking Solutions 2,608     3,169     3,097     1,995     1,922     (561 )     686    
Total loans $ 11,371     $ 11,799     $ 10,133     $ 8,935     $ 8,813     $ (428 )     $ 2,558    
                                                           

 

UNITED COMMUNITY BANKS, INC.                
Financial Highlights                
Loan Portfolio Composition at Year-End                
(in millions) 2020   2019   2018   2017   2016
LOANS BY CATEGORY                  
Owner occupied commercial RE $ 2,090     $ 1,720     $ 1,648     $ 1,924     $ 1,650  
Income producing commercial RE 2,541     2,008     1,812     1,595     1,282  
Commercial & industrial 1,853     1,221     1,278     1,131     1,070  
Paycheck protection program 646                  
Commercial construction 967     976     796     712     634  
Equipment financing 864     745     565          
Total commercial 8,961     6,670     6,099     5,362     4,636  
Residential mortgage 1,285     1,118     1,049     974     857  
Home equity lines of credit 697     661     694     731     655  
Residential construction 281     236     211     183     190  
Consumer 146     128     330     486     583  
Total loans $ 11,371     $ 8,813     $ 8,383     $ 7,736     $ 6,921  
                   
LOANS BY MARKET                  
North Georgia $ 955     $ 967     $ 981     $ 1,019     $ 1,097  
Atlanta 1,889     1,762     1,507     1,510     1,399  
North Carolina 1,281     1,156     1,072     1,049     545  
Coastal Georgia 617     631     588     630     581  
Gainesville 224     246     247     248     248  
East Tennessee 415     421     477     475     504  
South Carolina 1,947     1,708     1,645     1,486     1,233  
Florida 1,435                  
Commercial Banking Solutions 2,608     1,922     1,658     961     855  
Indirect auto         208     358     459  
Total loans $ 11,371     $ 8,813     $ 8,383     $ 7,736     $ 6,921  
                                       

 

UNITED COMMUNITY BANKS, INC.            
Financial Highlights            
Credit Quality            
    2020
(in thousands)   Fourth
Quarter
  Third
Quarter
  Second
Quarter
NONACCRUAL LOANS            
Owner occupied RE   $ 8,582     $ 11,075     $ 10,710  
Income producing RE   15,149     12,230     11,274  
Commercial & industrial   16,634     3,534     3,432  
Commercial construction   1,745     1,863     2,290  
Equipment financing   3,405     3,137     3,119  
Total commercial   45,515     31,839     30,825  
Residential mortgage   12,858     13,864     13,185  
Home equity lines of credit   2,487     2,642     3,138  
Residential construction   514     479     500  
Consumer   225     260     373  
Total   $ 61,599     $ 49,084     $ 48,021  
                         

 

    2020
    Fourth Quarter   Third Quarter   Second 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   $ (277 )     (0.05 ) %   $ (725 )     (0.14 ) %   $ (466 )     (0.11 ) %
Income producing RE   (1,718 )     (0.27 )     1,785       0.29       4,548       0.86    
Commercial & industrial   2,294       0.33       (105 )     (0.01 )     (37 )     (0.01 )  
Commercial construction   (129 )     (0.05 )     (171 )     (0.07 )     122       0.05    
Equipment financing   1,595       0.75       1,993       0.93       1,665       0.87    
Total commercial   1,765       0.08       2,777       0.12       5,832       0.31    
Residential mortgage   (25 )     (0.01 )     (35 )     (0.01 )     (6 )        
Home equity lines of credit   (151 )     (0.09 )     (125 )     (0.07 )     (98 )     (0.06 )  
Residential construction   (47 )     (0.07 )                 (5 )     (0.01 )  
Consumer   (27 )     (0.07 )     (79 )     (0.22 )     426       1.39    
Total   $ 1,515       0.05       $ 2,538       0.09       $ 6,149       0.25    
                         
(1) Annualized.                        
                         

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)

 

(in thousands, except share and per share data)   December 31,
2020
  December 31,
2019
ASSETS        
Cash and due from banks   $ 148,896     $ 125,844  
Interest-bearing deposits in banks   1,459,723     389,362  
Cash and cash equivalents   1,608,619     515,206  
Debt securities available-for-sale   3,224,721     2,274,581  
Debt securities held-to-maturity (fair value $437,193 and $287,904, respectively)   420,361     283,533  
Loans held for sale at fair value   105,433     58,484  
Loans and leases held for investment   11,370,815     8,812,553  
Less allowance for credit losses - loans and leases   (137,010 )   (62,089 )
Loans and leases, net   11,233,805     8,750,464  
Premises and equipment, net   218,489     215,976  
Bank owned life insurance   201,969     202,664  
Accrued interest receivable   47,672     32,660  
Net deferred tax asset   38,411     34,059  
Derivative financial instruments   86,666     35,007  
Goodwill and other intangible assets, net   381,823     342,247  
Other assets   226,405     171,135  
Total assets   $ 17,794,374     $ 12,916,016  
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Liabilities:        
Deposits:        
Noninterest-bearing demand   $ 5,390,291     $ 3,477,979  
NOW and interest-bearing demand   3,346,490     2,461,895  
Money market   3,550,335     2,230,628  
Savings   950,854     706,467  
Time   1,704,290     1,859,574  
Brokered   290,098     160,701  
Total deposits   15,232,358     10,897,244  
Long-term debt   326,956     212,664  
Derivative financial instruments   29,003     15,516  
Accrued expenses and other liabilities   198,527     154,900  
Total liabilities   15,786,844     11,280,324  
Shareholders' equity:        
Preferred stock, $1 par value: 10,000,000 shares authorized; Series I, $25,000 per share liquidation
preference; 4,000 and no shares issued and outstanding, respectively
  96,422      
Common stock, $1 par value; 150,000,000 shares authorized;
86,675,279 and 79,013,729 shares issued and outstanding, respectively
  86,675     79,014  
Common stock issuable; 600,834 and 664,640 shares, respectively   10,855     11,491  
Capital surplus   1,638,999     1,496,641  
Retained earnings   136,869     40,152  
Accumulated other comprehensive income   37,710     8,394  
Total shareholders’ equity   2,007,530     1,635,692  
Total liabilities and shareholders’ equity   $ 17,794,374     $ 12,916,016  
                 
                 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)

 

    Three Months Ended
December 31,
  Twelve Months Ended
December 31,
(in thousands, except per share data)   2020   2019   2020   2019
Interest revenue:                
Loans, including fees   $ 141,351     $ 118,464     $ 494,212     $ 476,039  
Investment securities, including tax exempt of $2,055 and $1,155, and $7,043 and $4,564   14,507     16,846     62,074     74,484  
Deposits in banks and short-term investments   213     1,109     1,710     2,183  
Total interest revenue   156,071     136,419     557,996     552,706  
Interest expense:                
Deposits:                
NOW and interest-bearing demand   1,495     3,382     7,735     13,665  
Money market   2,196     4,883     13,165     18,983  
Savings   48     34     169     149  
Time   2,689     8,372     20,703     34,059  
Deposits   6,428     16,671     41,772     66,856  
Short-term borrowings           3     838  
Federal Home Loan Bank advances       2     28     2,697  
Long-term debt   4,248     3,108     14,434     12,921  
Total interest expense   10,676     19,781     56,237     83,312  
Net interest revenue   145,395     116,638     501,759     469,394  
Provision for credit losses   2,907     3,500     80,434     13,150  
Net interest revenue after provision for credit losses   142,488     113,138     421,325     456,244  
Noninterest income:                
Service charges and fees   8,508     9,368     32,401     36,797  
Mortgage loan gains and related fees   18,974     9,395     76,087     27,145  
Brokerage fees and wealth management fees   3,221     1,526     9,240     6,150  
Gains from other loan sales, net   1,531     2,455     5,420     6,867  
Securities gains (losses), net   2     (903 )   748     (1,021 )
Other   9,139     8,342     32,213     28,775  
Total noninterest income   41,375     30,183     156,109     104,713  
Total revenue   183,863     143,321     577,434     560,957  
Noninterest expenses:                
Salaries and employee benefits   61,824     50,279     224,060     196,440  
Occupancy   7,082     5,926     25,791     23,350  
Communications and equipment   7,687     6,380     27,149     24,613  
FDIC assessments and other regulatory charges   1,594     1,330     5,982     4,901  
Professional fees   4,029     5,098     18,032     17,028  
Lending and loan servicing expense   2,468     1,907     10,993     9,416  
Outside services - electronic banking   1,997     1,919     7,513     7,020  
Postage, printing and supplies   1,793     1,637     6,779     6,370  
Advertising and public relations   9,891     1,914     15,203     6,170  
Amortization of intangibles   1,042     1,093     4,168     4,938  
Merger-related and other charges   2,452     (74 )   7,018     6,907  
Other   4,631     4,015     15,301     15,092  
Total noninterest expenses   106,490     81,424     367,989     322,245  
Net income before income taxes   77,373     61,897     209,445     238,712  
Income tax expense   17,871     12,885     45,356     52,991  
Net income   $ 59,502     $ 49,012     $ 164,089     $ 185,721  
Preferred stock dividends   1,719         3,533      
Undistributed earnings allocated to unvested shares   532     395     1,287     1,375  
Net income available to common shareholders   $ 57,251     $ 48,617     $ 159,269     $ 184,346  
                 
Net income per common share:                
Basic   $ 0.66     $ 0.61     $ 1.91     $ 2.31  
Diluted   0.66     0.61     1.91     2.31  
Weighted average common shares outstanding:                
Basic   87,258     79,659     83,184     79,700  
Diluted   87,333     79,669     83,248     79,708  

 

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 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)   $ 11,595,484     $ 140,687     4.83   %   $ 8,890,272     $ 118,262     5.28 %
Taxable securities (3)   3,039,275     12,452     1.64       2,306,065     15,691     2.72  
Tax-exempt securities (FTE) (1)(3)   286,490     2,759     3.85       179,744     1,551     3.45  
Federal funds sold and other interest-earning assets   1,472,668     1,132     0.31       456,055     1,586     1.39  
Total interest-earning assets (FTE)   16,393,917     157,030     3.81       11,832,136     137,090     4.60  
                         
Noninterest-earning assets:                        
Allowance for loan losses   (138,313 )           (63,601 )        
Cash and due from banks   143,694             120,936          
Premises and equipment   218,349             219,487          
Other assets (3)   1,080,180             836,586          
Total assets   $ 17,697,827             $ 12,945,544          
                         
Liabilities and Shareholders’ Equity:                        
Interest-bearing liabilities:                        
Interest-bearing deposits:                        
NOW and interest-bearing demand   $ 3,281,984     1,495     0.18       $ 2,398,396     3,382     0.56  
Money market   3,698,734     2,196     0.24       2,321,352     4,883     0.83  
Savings   918,623     48     0.02       704,454     34     0.02  
Time   1,748,099     2,711     0.62       1,880,174     7,975     1.68  
Brokered time deposits   83,750     (22 )   (0.10 )     85,781     397     1.84  
Total interest-bearing deposits   9,731,190     6,428     0.26       7,390,157     16,671     0.89  
Federal funds purchased and other borrowings   54                        
Federal Home Loan Bank advances                 435     2     1.82  
Long-term debt   327,236     4,248     5.16       232,726     3,108     5.30  
Total borrowed funds   327,290     4,248     5.16       233,161     3,110     5.29  
Total interest-bearing liabilities   10,058,480     10,676     0.42       7,623,318     19,781     1.03  
                         
Noninterest-bearing liabilities:                        
Noninterest-bearing deposits   5,325,858             3,533,746          
Other liabilities   319,158             165,148          
Total liabilities   15,703,496             11,322,212          
Shareholders’ equity   1,994,331             1,623,332          
Total liabilities and shareholders’ equity   $ 17,697,827             $ 12,945,544          
                         
Net interest revenue (FTE)       $ 146,354             $ 117,309      
Net interest-rate spread (FTE)           3.39   %           3.57 %
Net interest margin (FTE) (4)           3.55   %           3.93 %
                               

(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 $72.6 million in 2020 and $36.0 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.

 
 
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 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)   $ 10,466,653     $ 492,223     4.70 %   $ 8,708,035     $ 475,803     5.46 %
Taxable securities (3)   2,532,750     55,031     2.17     2,475,102     69,920     2.82  
Tax-exempt securities (FTE) (1)(3)   219,668     9,458     4.31     171,549     6,130     3.57  
Federal funds sold and other interest-earning assets   1,007,059     4,753     0.47     254,370     3,499     1.38  
Total interest-earning assets (FTE)   14,226,130     561,465     3.95     11,609,056     555,352     4.78  
                         
Non-interest-earning assets:                        
Allowance for loan losses   (106,812 )           (62,900 )        
Cash and due from banks   136,702             121,649          
Premises and equipment   217,751             220,523          
Other assets (3)   993,584             798,649          
Total assets   $ 15,467,355             $ 12,686,977          
                         
Liabilities and Shareholders’ Equity:                        
Interest-bearing liabilities:                        
Interest-bearing deposits:                        
NOW and interest-bearing demand   $ 2,759,383     7,735     0.28     $ 2,249,713     13,665     0.61  
Money market   3,023,928     13,165     0.44     2,221,478     18,983     0.85  
Savings   821,344     169     0.02     690,028     149     0.02  
Time   1,832,319     20,146     1.10     1,791,319     28,313     1.58  
Brokered time deposits   97,788     557     0.57     240,646     5,746     2.39  
Total interest-bearing deposits   8,534,762     41,772     0.49     7,193,184     66,856     0.93  
Federal funds purchased and other borrowings   1,220     3     0.25     33,504     838     2.50  
Federal Home Loan Bank advances   749     28     3.74     106,973     2,697     2.52  
Long-term debt   274,069     14,434     5.27     247,732     12,921     5.22  
Total borrowed funds   276,038     14,465     5.24     388,209     16,456     4.24  
Total interest-bearing liabilities   8,810,800     56,237     0.64     7,581,393     83,312     1.10  
                         
Noninterest-bearing liabilities:                        
Noninterest-bearing deposits   4,600,152             3,385,431          
Other liabilities   235,120             164,550          
Total liabilities   13,646,072             11,131,374          
Shareholders’ equity   1,821,283             1,555,603          
Total liabilities and shareholders’ equity   $ 15,467,355             $ 12,686,977          
                         
Net interest revenue (FTE)       $ 505,228             $ 472,040      
Net interest-rate spread (FTE)           3.31 %           3.68 %
Net interest margin (FTE) (4)           3.55 %           4.07 %

(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 $67.3 million in 2020 and $12.8 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) (United) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $17.8 billion in assets, and 160 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee. United Community Bank, United’s wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, including Florida under the brand Seaside Bank and Trust. Services include a full range of consumer and commercial banking products, including mortgage, advisory, treasury management, and wealth management. Respected national research firms consistently recognize United for outstanding customer service. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. United was also named "Best Banks to Work For" by American Banker in 2020 for the fourth year in a row based on employee satisfaction. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2020 list of the 100 Best Banks in America for the seventh consecutive year. United also received five Greenwich Excellence Awards in 2019 for excellence in Small Business Banking and Middle Market Banking, including a national award for Overall Satisfaction in Small Business Banking. Additional information about United 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 

 

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