Document
false0000857855 0000857855 2019-10-22 2019-10-22
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 22, 2019

UNITED COMMUNITY BANKS, INC.
(Exact name of registrant as specified in its charter)

Georgia
 
001-35095
 
58-1807304
(State or other jurisdiction of incorporation)
 
(Commission file number)
 
(IRS Employer Identification No.)

125 Highway 515 East
Blairsville, Georgia 30512
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(706) 781-2265

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
 
 
 
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common stock, par value $1 per share
UCBI
Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 
 
 
 
 





Item 2.02
Results of Operations and Financial Condition.
 
On October 22, 2019, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the third quarter of 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
 
 
Item 7.01
Regulation FD Disclosure.
 
On October 23, 2019, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the third quarter of 2019. The press release referenced above in Item 2.02 contains information about how to access the conference call and webcast. A copy of the slide presentation to be used during the earnings call and webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.ucbi.com, under the “Investor Relations – Events and Presentations” section.
 
 
Item 9.01
Financial Statements and Exhibits. 
 
 
(d) Exhibits
The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K.
 
 
 






 
EXHIBIT INDEX
 
Exhibit No.
 
Description
 
 
 
 
 
 
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.







SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
By:
/s/ Jefferson L. Harralson
 
 
Jefferson L. Harralson
 
 
Executive Vice President and
 
 
Chief Financial Officer
 
 
Date:  October 22, 2019
 



Exhibit



http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13158583&doc=33

For Immediate Release

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

United Community Banks, Inc. reports Third Quarter Results

EPS of $0.60 and ROA of 1.51%; Operating ROA reaches 1.58%
 
GREENVILLE, SC - October 22, 2019
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,
 
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
Third Quarter
 
2019
 
2018
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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