Press Release Details

EPS of $0.60 and ROA of 1.51%; Operating ROA reaches 1.58%

GREENVILLE, S.C., Oct. 22, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported strong third quarter financial results, including solid year-over-year loan and deposit growth, record operating efficiency and strong asset quality. Diluted earnings per share were $0.60, an increase of $0.06 or 11% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.63, up 15% over last year. United’s return on assets (“ROA”) was 1.51% and its return on common equity was 12.2% for the quarter. On an operating basis, United’s ROA was 1.58% and its return on tangible common equity was 16.4%.

In the third quarter, loans grew at a 3% annualized rate, or at 4% annualized excluding the planned runoff of the discontinued indirect auto portfolio. With this loan growth and continued balance sheet remixing opportunities, United maintained its net interest margin during the quarter, despite declining interest rates. Core transaction deposits grew by $105 million, or 6% annualized, and total customer deposits increased by $197 million during the quarter. Finally, United’s combination of revenue growth and expense management resulted in a 55.64% efficiency ratio, or 53.90% on an operating basis, which represented a new Company best for the second consecutive quarter.

“We are pleased to report such a successful quarter, which is a testament to our team and their tireless dedication to providing outstanding customer service and to executing on our plans to deliver top quartile results,” said Lynn Harton, Chairman and CEO of United. “I am also tremendously proud that United was named one of the "Best Banks to Work For" by American Banker for the third year in a row.  This honor is achieved through the focus and energy of our bankers to build a company where great people can find fulfillment in helping others reach their financial goals."

Third Quarter 2019 Financial Highlights:

• EPS growth of 11% over last year, or 15% on an operating basis
• Return on assets of 1.51%, or 1.58% excluding merger-related and other charges
• Return on common equity of 12.2%
• Return on tangible common equity of 16.4% excluding merger-related and other charges
• Loan production of $896 million compared to $778 million in Q3 2018
• Loan growth, excluding planned runoff of the indirect portfolio of 4% for the quarter and 7% year-to-date on an annualized basis, excluding the acquisition of First Madison on May 1, 2019
• Loan growth of $89 million, excluding planned run off of the indirect portfolio, was more than funded by core transaction deposit growth of $105 million
• Mortgage locks of $508 million, a company high, compared to $298 million a year ago
• Stable net interest margin of 4.12% was flat compared to the second quarter and up 17 basis points from a year ago
• Efficiency ratio of 55.64%, or 53.90%, excluding merger-related and other charges
• Net charge-offs of 12 basis points, up one basis point from last quarter and remaining at historically low levels
• Nonperforming assets of 0.24% of total assets, compared with 0.21% at June 30, 2019 and 0.19% at September 30, 2018
• Repurchased approximately 195,000 shares at an average price of $26.51 in the quarter

Conference Call
United will hold a conference call, Wednesday, October 23, 2019, 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 8899475. 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
		2019												2018								Third Quarter 2019 - 2018 Change			For the Nine Months Ended September 30,								YTD 2019 - 2018 Change
(in thousands, except per share data)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter							2019				2018
INCOME SUMMARY
Interest revenue		$	140,615			$	139,156			$	136,516			$	133,854			$	128,721						$	416,287			$	366,226
Interest expense		21,277				21,372				20,882				18,975				16,611							63,531				42,355
Net interest revenue		119,338				117,784				115,634				114,879				112,110				6	%		352,756				323,871				9	%
Provision for credit losses		3,100				3,250				3,300				2,100				1,800				72			9,650				7,400				30
Noninterest income		29,031				24,531				20,968				23,045				24,180				20			74,530				69,916				7
Total revenue		145,269				139,065				133,302				135,824				134,490				8			417,636				386,387				8
Expenses		82,924				81,813				76,084				78,242				77,718				7			240,821				228,043				6
Income before income tax expense		62,345				57,252				57,218				57,582				56,772				10			176,815				158,344				12
Income tax expense		13,983				13,167				12,956				12,445				13,090				7			40,106				37,370				7
Net income		48,362				44,085				44,262				45,137				43,682				11			136,709				120,974				13
Merger-related and other charges		2,605				4,087				739				1,234				592							7,431				6,111
Income tax benefit of merger-related and other charges		(600		)		(940		)		(172		)		(604		)		(141		)					(1,712		)		(890		)
Net income - operating (1)		$	50,367			$	47,232			$	44,829			$	45,767			$	44,133			14			$	142,428			$	126,195			13
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.60			$	0.55			$	0.55			$	0.56			$	0.54			11			$	1.70			$	1.51			13
Diluted net income - operating (1)		0.63				0.59				0.56				0.57				0.55				15			1.77				1.57				13
Cash dividends declared		0.17				0.17				0.16				0.16				0.15				13			0.50				0.42				19
Book value		20.16				19.65				18.93				18.24				17.56				15			20.16				17.56				15
Tangible book value (3)		15.90				15.38				14.93				14.24				13.54				17			15.90				13.54				17
Key performance ratios:
Return on common equity - GAAP (2)(4)		12.16		%		11.45		%		11.85		%		12.08		%		11.96		%					11.83		%		11.43		%
Return on common equity - operating (1)(2)(4)		12.67				12.27				12.00				12.25				12.09							12.32				11.93
Return on tangible common equity - operating (1)(2)(3)(4)		16.38				15.88				15.46				15.88				15.81							15.92				15.62
Return on assets - GAAP (4)		1.51				1.40				1.44				1.43				1.41							1.45				1.32
Return on assets - operating (1)(4)		1.58				1.50				1.45				1.45				1.42							1.51				1.38
Net interest margin (fully taxable equivalent) (4)		4.12				4.12				4.10				3.97				3.95							4.11				3.88
Efficiency ratio - GAAP		55.64				57.28				55.32				56.73				56.82							56.09				57.52
Efficiency ratio - operating (1)		53.90				54.42				54.78				55.83				56.39							54.36				55.98
Equity to total assets		12.53				12.25				12.06				11.60				11.30							12.53				11.30
Tangible common equity to tangible assets (3)		10.16				9.86				9.76				9.29				8.95							10.16				8.95
ASSET QUALITY
Nonperforming loans		$	30,832			$	26,597			$	23,624			$	23,778			$	22,530			37			$	30,832			$	22,530			37
Foreclosed properties		102				75				1,127				1,305				1,336				(92	)		102				1,336				(92	)
Total nonperforming assets ("NPAs")		30,934				26,672				24,751				25,083				23,866				30			30,934				23,866				30
Allowance for loan losses		62,514				62,204				61,642				61,203				60,940				3			62,514				60,940				3
Net charge-offs		2,723				2,438				3,130				1,787				1,466				86			8,291				4,326				92
Allowance for loan losses to loans		0.70		%		0.70		%		0.73		%		0.73		%		0.74		%					0.70		%		0.74		%
Net charge-offs to average loans (4)		0.12				0.11				0.15				0.09				0.07							0.13				0.07
NPAs to loans and foreclosed properties		0.35				0.30				0.29				0.30				0.29							0.35				0.29
NPAs to total assets		0.24				0.21				0.20				0.20				0.19							0.24				0.19
AVERAGE BALANCES ($ in millions)
Loans		$	8,836			$	8,670			$	8,430			$	8,306			$	8,200			8			$	8,647			$	8,124			6
Investment securities		2,550				2,674				2,883				3,004				2,916				(13	)		2,701				2,863				(6	)
Earning assets		11,568				11,534				11,498				11,534				11,320				2			11,534				11,197				3
Total assets		12,681				12,608				12,509				12,505				12,302				3			12,600				12,209				3
Deposits		10,531				10,493				10,361				10,306				9,950				6			10,462				9,896				6
Shareholders’ equity		1,588				1,531				1,478				1,420				1,394				14			1,533				1,367				12
Common shares - basic (thousands)		79,663				79,673				79,807				79,884				79,806				—			79,714				79,588				—
Common shares - diluted (thousands)		79,667				79,678				79,813				79,890				79,818				—			79,718				79,598				—
AT PERIOD END ($ in millions)
Loans		$	8,903			$	8,838			$	8,493			$	8,383			$	8,226			8			$	8,903			$	8,226			8
Investment securities		2,515				2,620				2,720				2,903				2,873				(12	)		2,515				2,873				(12	)
Total assets		12,809				12,779				12,506				12,573				12,405				3			12,809				12,405				3
Deposits		10,757				10,591				10,534				10,535				10,229				5			10,757				10,229				5
Shareholders’ equity		1,605				1,566				1,508				1,458				1,402				14			1,605				1,402				14
Common shares outstanding (thousands)		78,974				79,075				79,035				79,234				79,202				—			78,974				79,202				—

⁽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.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		2019												2018								For the Nine Months Ended September 30,
(in thousands, except per share data)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter				2019				2018
Expense reconciliation
Expenses (GAAP)		$	82,924			$	81,813			$	76,084			$	78,242			$	77,718			$	240,821			$	228,043
Merger-related and other charges		(2,605		)		(4,087		)		(739		)		(1,234		)		(592		)		(7,431		)		(6,111		)
Expenses - operating		$	80,319			$	77,726			$	75,345			$	77,008			$	77,126			$	233,390			$	221,932
Net income reconciliation
Net income (GAAP)		$	48,362			$	44,085			$	44,262			$	45,137			$	43,682			$	136,709			$	120,974
Merger-related and other charges		2,605				4,087				739				1,234				592				7,431				6,111
Income tax benefit of merger-related and other charges		(600		)		(940		)		(172		)		(604		)		(141		)		(1,712		)		(890		)
Net income - operating		$	50,367			$	47,232			$	44,829			$	45,767			$	44,133			$	142,428			$	126,195
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.60			$	0.55			$	0.55			$	0.56			$	0.54			$	1.70			$	1.51
Merger-related and other charges		0.03				0.04				0.01				0.01				0.01				0.07				0.06
Diluted income per common share - operating		$	0.63			$	0.59			$	0.56			$	0.57			$	0.55			$	1.77			$	1.57
Book value per common share reconciliation
Book value per common share (GAAP)		$	20.16			$	19.65			$	18.93			$	18.24			$	17.56			$	20.16			$	17.56
Effect of goodwill and other intangibles		(4.26		)		(4.27		)		(4.00		)		(4.00		)		(4.02		)		(4.26		)		(4.02		)
Tangible book value per common share		$	15.90			$	15.38			$	14.93			$	14.24			$	13.54			$	15.90			$	13.54
Return on tangible common equity reconciliation
Return on common equity (GAAP)		12.16		%		11.45		%		11.85		%		12.08		%		11.96		%		11.83		%		11.43		%
Merger-related and other charges		0.51				0.82				0.15				0.17				0.13				0.49				0.50
Return on common equity - operating		12.67				12.27				12.00				12.25				12.09				12.32				11.93
Effect of goodwill and other intangibles		3.71				3.61				3.46				3.63				3.72				3.60				3.69
Return on tangible common equity - operating		16.38		%		15.88		%		15.46		%		15.88		%		15.81		%		15.92		%		15.62		%
Return on assets reconciliation
Return on assets (GAAP)		1.51		%		1.40		%		1.44		%		1.43		%		1.41		%		1.45		%		1.32		%
Merger-related and other charges		0.07				0.10				0.01				0.02				0.01				0.06				0.06
Return on assets - operating		1.58		%		1.50		%		1.45		%		1.45		%		1.42		%		1.51		%		1.38		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		55.64		%		57.28		%		55.32		%		56.73		%		56.82		%		56.09		%		57.52		%
Merger-related and other charges		(1.74		)		(2.86		)		(0.54		)		(0.90		)		(0.43		)		(1.73		)		(1.54		)
Efficiency ratio - operating		53.90		%		54.42		%		54.78		%		55.83		%		56.39		%		54.36		%		55.98		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.53		%		12.25		%		12.06		%		11.60		%		11.30		%		12.53		%		11.30		%
Effect of goodwill and other intangibles		(2.37		)		(2.39		)		(2.30		)		(2.31		)		(2.35		)		(2.37		)		(2.35		)
Tangible common equity to tangible assets		10.16		%		9.86		%		9.76		%		9.29		%		8.95		%		10.16		%		8.95		%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2019												2018								Linked Quarter Change				Year over Year Change
(in millions)	Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,692			$	1,658			$	1,620			$	1,648			$	1,673			$	34			$	19
Income producing commercial RE	1,934				1,939				1,867				1,812				1,788				(5		)		146
Commercial & industrial	1,271				1,299				1,284				1,278				1,194				(28		)		77
Commercial construction	1,001				983				866				796				761				18				240
Equipment financing	729				674				606				565				509				55				220
Total commercial	6,627				6,553				6,243				6,099				5,925				74				702
Residential mortgage	1,121				1,108				1,064				1,049				1,035				13				86
Home equity lines of credit	669				675				684				694				702				(6		)		(33		)
Residential construction	229				219				200				211				198				10				31
Consumer	257				283				302				330				366				(26		)		(109		)
Total loans	$	8,903			$	8,838			$	8,493			$	8,383			$	8,226			$	65			$	677
LOANS BY MARKET
North Georgia	$	1,002			$	1,002			$	970			$	981			$	992			—				10
Atlanta	1,740				1,745				1,524				1,507				1,493				(5		)		247
North Carolina	1,117				1,084				1,074				1,072				1,078				33				39
Coastal Georgia	611				604				603				588				610				7				1
Gainesville	246				244				243				247				235				2				11
East Tennessee	435				446				458				477				460				(11		)		(25		)
South Carolina	1,705				1,674				1,674				1,645				1,586				31				119
Commercial Banking Solutions	1,916				1,884				1,766				1,658				1,530				32				386
Indirect auto	131				155				181				208				242				(24		)		(111		)
Total loans	$	8,903			$	8,838			$	8,493			$	8,383			$	8,226			$	65			$	677

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		2019
(in thousands)		Third Quarter				Second Quarter				First Quarter
NONACCRUAL LOANS
Owner occupied RE		$	8,430			$	8,177			$	7,030
Income producing RE		2,030				1,331				1,276
Commercial & industrial		2,625				2,366				1,666
Commercial construction		1,894				1,650				473
Equipment financing		1,974				2,047				1,813
Total commercial		16,953				15,571				12,258
Residential mortgage		9,475				8,012				8,281
Home equity lines of credit		3,065				1,978				2,233
Residential construction		597				494				347
Consumer		742				542				505
Total		$	30,832			$	26,597			$	23,624
NONACCRUAL LOANS ACTIVITY
Beginning Balance		$	26,597			$	23,624			$	23,778
Loans placed on non-accrual		8,722				8,316				6,759
Payments received		(2,107		)		(3,212		)		(3,520		)
Loan charge-offs		(2,278		)		(2,131		)		(2,714		)
Foreclosures		(102		)		—				(679		)
Ending Balance		$	30,832			$	26,597			$	23,624

		2019
		Third Quarter							Second Quarter							First 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		$	(39	)		(0.01	)%		$	(58	)		(0.01	)%		$	(64	)		(0.02	)%
Income producing RE		431				0.09			241				0.05			177				0.04
Commercial & industrial		691				0.21			1,141				0.35			1,356				0.43
Commercial construction		(247		)		(0.10	)		(162		)		(0.07	)		(325		)		(0.16	)
Equipment financing		1,174				0.67			890				0.56			1,281				0.89
Total commercial		2,010				0.12			2,052				0.13			2,425				0.16
Residential mortgage		158				0.06			(125		)		(0.05	)		13				—
Home equity lines of credit		83				0.05			(111		)		(0.07	)		215				0.13
Residential construction		(5		)		(0.01	)		199				0.38			(22		)		(0.04	)
Consumer		477				0.70			423				0.58			499				0.64
Total		$	2,723			0.12			$	2,438			0.11			$	3,130			0.15
(1)  Annualized.

UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)		September 30, 2019				December 31, 2018
ASSETS
Cash and due from banks		$	108,389			$	126,083
Interest-bearing deposits in banks (includes restricted cash of $5,326 and $6,702)		252,670				201,182
Cash and cash equivalents		361,059				327,265
Debt securities available for sale		2,272,046				2,628,467
Debt securities held to maturity (fair value $248,546 and $268,803)		243,028				274,407
Loans held for sale at fair value		54,625				18,935
Loans and leases, net of unearned income		8,903,266				8,383,401
Less allowance for loan and lease losses		(62,514		)		(61,203		)
Loans and leases, net		8,840,752				8,322,198
Premises and equipment, net		215,435				206,140
Bank owned life insurance		201,955				192,616
Accrued interest receivable		33,233				35,413
Net deferred tax asset		34,591				64,224
Derivative financial instruments		43,755				24,705
Goodwill and other intangible assets		343,340				324,072
Other assets		165,667				154,750
Total assets		$	12,809,486			$	12,573,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	3,527,815			$	3,210,220
NOW and interest-bearing demand		2,210,352				2,369,631
Money market		2,206,496				2,002,670
Savings		699,131				669,886
Time		1,890,431				1,598,391
Brokered		222,292				683,715
Total deposits		10,756,517				10,534,513
Federal Home Loan Bank advances		40,000				160,000
Long-term debt		240,245				267,189
Derivative financial instruments		16,244				26,433
Accrued expenses and other liabilities		151,055				127,503
Total liabilities		11,204,061				11,115,638
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized; 78,974,199 and 79,234,077  shares issued and outstanding		78,974				79,234
Common stock issuable; 660,581 and 674,499 shares		11,327				10,744
Capital surplus		1,495,267				1,499,584
Retained earnings (accumulated deficit)		5,594				(90,419		)
Accumulated other comprehensive income (loss)		14,263				(41,589		)
Total shareholders' equity		1,605,425				1,457,554
Total liabilities and shareholders' equity		$	12,809,486			$	12,573,192

UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2019				2018				2019				2018
Interest revenue:
Loans, including fees		$	122,645			$	108,335			$	357,575			$	308,296
Investment securities, including tax exempt of $1,118 and $1,052, and $3,409 and $3,049		17,744				19,899				57,638				56,448
Deposits in banks and short-term investments		226				487				1,074				1,482
Total interest revenue		140,615				128,721				416,287				366,226
Interest expense:
Deposits:
NOW and interest-bearing demand		3,214				1,985				10,283				4,483
Money market		5,126				3,177				14,100				7,853
Savings		41				33				115				117
Time		8,732				5,746				25,687				12,900
Total deposit interest expense		17,113				10,941				50,185				25,353
Short-term borrowings		429				274				838				772
Federal Home Loan Bank advances		521				1,791				2,695				5,551
Long-term debt		3,214				3,605				9,813				10,679
Total interest expense		21,277				16,611				63,531				42,355
Net interest revenue		119,338				112,110				352,756				323,871
Provision for credit losses		3,100				1,800				9,650				7,400
Net interest revenue after provision for credit losses		116,238				110,310				343,106				316,471
Noninterest income:
Service charges and fees		9,916				9,112				27,429				26,831
Mortgage loan and other related fees		8,658				5,262				17,750				15,928
Brokerage fees		1,699				1,525				4,624				3,598
Gains from sales of SBA/USDA loans		1,639				2,605				4,412				6,784
Securities gains (losses), net		—				2				(118		)		(1,302		)
Other		7,119				5,674				20,433				18,077
Total noninterest income		29,031				24,180				74,530				69,916
Total revenue		145,269				134,490				417,636				386,387
Noninterest expenses:
Salaries and employee benefits		50,501				47,146				146,161				135,384
Communications and equipment		6,223				5,590				18,233				15,071
Occupancy		5,921				5,779				17,424				16,939
Advertising and public relations		1,374				1,442				4,256				4,341
Postage, printing and supplies		1,618				1,574				4,733				4,896
Professional fees		4,715				3,927				11,930				11,435
FDIC assessments and other regulatory charges		314				2,228				3,571				6,677
Amortization of intangibles		1,210				1,681				3,845				5,426
Merger-related and other charges		2,541				115				6,981				4,449
Other		8,507				8,236				23,687				23,425
Total noninterest expenses		82,924				77,718				240,821				228,043
Net income before income taxes		62,345				56,772				176,815				158,344
Income tax expense		13,983				13,090				40,106				37,370
Net income		$	48,362			$	43,682			$	136,709			$	120,974
Net income available to common shareholders		$	48,011			$	43,381			$	135,727			$	120,124
Net income per common share:
Basic		$	0.60			$	0.54			$	1.70			$	1.51
Diluted		0.60				0.54				1.70				1.51
Weighted average common shares outstanding:
Basic		79,663				79,806				79,714				79,588
Diluted		79,667				79,818				79,718				79,598

Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended September 30,
		2019											2018
(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)		$	8,835,585			$	122,526			5.50	%		$	8,199,856			$	108,197			5.23	%
Taxable securities (3)		2,379,927				16,626				2.79			2,763,461				18,847				2.73
Tax-exempt securities (FTE) (1)(3)		170,027				1,502				3.53			152,939				1,417				3.71
Federal funds sold and other interest-earning assets		182,935				616				1.35			203,707				751				1.47
Total interest-earning assets (FTE)		11,568,474				141,270				4.85			11,319,963				129,212				4.53
Noninterest-earning assets:
Allowance for loan losses		(63,474		)									(62,322		)
Cash and due from banks		116,922											123,290
Premises and equipment		221,930											216,775
Other assets (3)		836,951											703,915
Total assets		$	12,680,803										$	12,301,621
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	2,123,910			3,214				0.60			$	1,963,312			1,985				0.40
Money market		2,277,162				5,126				0.89			2,078,116				3,177				0.61
Savings		695,297				41				0.02			680,640				33				0.02
Time		1,879,801				8,053				1.70			1,545,020				3,351				0.86
Brokered time deposits		102,078				679				2.64			434,182				2,395				2.19
Total interest-bearing deposits		7,078,248				17,113				0.96			6,701,270				10,941				0.65
Federal funds purchased and other borrowings		73,733				429				2.31			50,767				274				2.14
Federal Home Loan Bank advances		88,261				521				2.34			331,413				1,791				2.14
Long-term debt		243,935				3,214				5.23			296,366				3,605				4.83
Total borrowed funds		405,929				4,164				4.07			678,546				5,670				3.32
Total interest-bearing liabilities		7,484,177				21,277				1.13			7,379,816				16,611				0.89
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,453,174											3,249,218
Other liabilities		155,107											278,764
Total liabilities		11,092,458											10,907,798
Shareholders' equity		1,588,345											1,393,823
Total liabilities and shareholders' equity		$	12,680,803										$	12,301,621
Net interest revenue (FTE)						$	119,993										$	112,601
Net interest-rate spread (FTE)										3.72	%										3.64	%
Net interest margin (FTE) (4)										4.12	%										3.95	%

⁽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 $35.1 million in 2019 and unrealized losses of $49.9 million in 2018 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 Nine Months Ended September 30,
		2019											2018
(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)		$	8,646,622			$	357,541			5.53	%		$	8,124,269			$	307,981			5.07	%
Taxable securities (3)		2,532,070				54,229				2.86			2,712,900				53,399				2.62
Tax-exempt securities (FTE) (1)(3)		168,787				4,579				3.62			150,014				4,106				3.65
Federal funds sold and other interest-earning assets		186,402				1,913				1.37			209,836				2,123				1.35
Total interest-earning assets (FTE)		11,533,881				418,262				4.85			11,197,019				367,609				4.39
Non-interest-earning assets:
Allowance for loan losses		(62,664		)									(61,259		)
Cash and due from banks		121,889											138,809
Premises and equipment		220,872											217,339
Other assets (3)		785,862											717,555
Total assets		$	12,599,840										$	12,209,463
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	2,199,607			10,283				0.63			$	2,098,734			4,483				0.29
Money market		2,187,822				14,100				0.86			2,113,972				7,853				0.50
Savings		685,167				115				0.02			671,883				117				0.02
Time		1,761,374				20,338				1.54			1,534,823				8,288				0.72
Brokered time deposits		292,835				5,349				2.44			298,653				4,612				2.06
Total interest-bearing deposits		7,126,805				50,185				0.94			6,718,065				25,353				0.50
Federal funds purchased and other borrowings		44,898				838				2.50			58,144				772				1.78
Federal Home Loan Bank advances		142,876				2,695				2.52			392,227				5,551				1.89
Long-term debt		252,686				9,813				5.19			295,966				10,679				4.82
Total borrowed funds		440,460				13,346				4.05			746,337				17,002				3.05
Total interest-bearing liabilities		7,567,265				63,531				1.12			7,464,402				42,355				0.76
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,335,450											3,178,387
Other liabilities		164,350											199,848
Total liabilities		11,067,065											10,842,637
Shareholders' equity		1,532,775											1,366,826
Total liabilities and shareholders' equity		$	12,599,840										$	12,209,463
Net interest revenue (FTE)						$	354,731										$	325,254
Net interest-rate spread (FTE)										3.73	%										3.63	%
Net interest margin (FTE) (4)										4.11	%										3.88	%

⁽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 $4.94 million in 2019 and unrealized losses of $40.4 million in 2018 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 $12.8 billion in assets, and 147 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, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. 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,” “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,” “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.