UCBI - United Community Banks Inc. Announces Fourth Quarter Results

January, 22 2019 05:00 PM United Community Banks Inc.

GREENVILLE, S.C., Jan. 22, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, which reflected solid year-over-year loan and deposit growth, improving operating efficiency and continued strong asset quality. For the quarter, diluted earnings per share was $0.56 compared with a net loss of $0.16 per diluted share a year ago due to the impact of tax reform. Operating diluted earnings per share, which exclude merger-related and other charges, was $0.57, an increase of 36% over the previous year. Profitability ratios continued to be strong — United ended the year with a 1.43% return on assets and a 12.08% return on common equity. On an operating basis, return on assets was 1.45% and return on tangible common equity was 15.88%.

Other key banking metrics were strong. The fourth quarter saw continued net interest margin expansion and 8% annualized loan growth, the strongest growth quarter in 2018. Deposit growth reflected the strength of United’s community banking franchise — total customer deposits increased $173 million for the fourth quarter and $414 million for the year. Mortgage production grew by nearly 4% compared to the fourth quarter last year and increased 20% for the full year compared to 2017. United’s SBA business also had a strong year, with production up 12% over 2017.

“The fourth quarter was a strong finish to an outstanding year,” said Lynn Harton, Chief Executive Officer. “Our full year return on assets was up 31 basis points on an operating basis and our operating earnings per share was up 31% over 2017. These impressive results do not come easily and are attributed to the hard work of our bankers, who continue to deliver the best service in the business. We are very pleased that their efforts are being recognized. Forbes included United on their list of the top 100 Best Banks in America for the fifth consecutive year. Additionally, for the fifth straight year, we earned the top ranking for overall customer satisfaction by JD Power; our service was ranked as highest in the Southeast. We were also honored by our recognition in the 'Best Banks to Work For' program by American Banker for the second year in a row. This is a measure of employee satisfaction for all banks in the country, and we could not be more pleased by our team’s show of support for United. The strength of our culture and the strong momentum we see in the business gives me confidence that we will continue our strong performance into 2019 and continue to build long-term shareholder value.”

2018 Highlights:

2018 earnings per diluted share was $2.07, a 125% increase over 2017, which included the impact of tax reform
- Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was $2.14 compared to $1.63 in 2017, an increase of 31%
Return on average assets was 1.35% in 2018, an increase of 73 basis points from 2017
- Excluding merger-related and other charges and the 2017 impact of tax reform, return on average assets was 1.40%, an increase of 31 basis points from 2017
Efficiency ratio of 57.31% in 2018 improved 264 basis points as compared to 2017
- Excluding merger-related and other charges, efficiency ratio of 55.94% improved 73 basis points as compared to 2017
End of period loans grew $647 million in 2018, up 8% over December 31, 2017
Common Equity Tier 1 ratio was 12.2% at December 31, 2018, compared to 12.0% at December 31, 2017
Declared $0.58 per share in common dividends in 2018, up 53% over 2017
Completed the acquisition of Navitas Credit Corporation on February 1, 2018
Issued $100 million in subordinated debt in the first quarter and redeemed $7.4 million in high rate Trust Preferred securities in the fourth quarter
Completed our CEO transition plan, elevating H. Lynn Harton into the role as Jimmy Tallent retired into the Executive Chairman position
Added two new Board members, Jennifer Mann and Lance F. Drummond, adding significant experience and expertise to our oversight function

Fourth Quarter 2018 Financial Highlights:

Return on assets of 1.43%, or 1.45% excluding merger-related and other charges
Return on common equity of 12.1% or return on tangible common equity of 15.9%, which excludes merger-related and other charges
Loan growth, excluding planned runoff of the indirect portfolio, of 10% on an annualized basis
Loan production of $868 million, as compared to $644 million in the fourth quarter of 2017
Expansion of the net interest margin to 3.97%, up two basis points from the third quarter of 2018 and up 34 basis points from a year ago
Efficiency ratio of 56.73%, or 55.83% excluding merger-related and other charges
Net charge offs of nine basis points, consistent with last quarter’s result of seven basis points
Nonperforming assets of 0.20% of total assets, compared to 0.19% at September 30, 2018 and 0.23% at December 31, 2017

Conference Call

United will hold a conference call, Wednesday, January 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 9381368. 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








































































Fourth


For the Twelve





2018


2017


Quarter


Months Ended

YTD



Fourth


Third


Second


First


Fourth


2018-2017


December 31,

2018-2017

(in thousands, except per share data)

Quarter


Quarter


Quarter


Quarter


Quarter


Change


2018


2017

Change

INCOME SUMMARY



























Interest revenue
$
133,854


$
128,721


$
122,215


$
115,290


$
106,757





$
500,080


$
389,720





Interest expense

18,975



16,611



13,739



12,005



9,249






61,330



33,735





Net interest revenue

114,879



112,110



108,476



103,285



97,508



18

%
438,750



355,985


23

%

Provision for credit losses

2,100



1,800



1,800



3,800



1,200






9,500



3,800





Noninterest income

23,045



24,180



23,340



22,396



21,928



5



92,961



88,260


5



Total revenue

135,824



134,490



130,016



121,881



118,236



15



522,211



440,445


19



Expenses

78,242



77,718



76,850



73,475



75,882



3



306,285



267,611


14



Income before income tax expense

57,582



56,772



53,166



48,406



42,354



36



215,926



172,834


25



Income tax expense

12,445



13,090



13,532



10,748



54,270






49,815



105,013





Net income (loss)

45,137



43,682



39,634



37,658



(11,916
)





166,111



67,821





Merger-related and other charges

1,234



592



2,873



2,646



7,358






7,345



14,662





Income tax benefit of merger-related and other charges

(604
)


(141
)


(121
)


(628
)


(1,165
)





(1,494
)


(3,745
)




Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act

-



-



-



-



38,199






-



38,199





Release of disproportionate tax effects lodged in OCI

-



-



-



-



-






-



3,400





Net income - operating ⁽¹⁾
$
45,767


$
44,133


$
42,386


$
39,676


$
32,476



41


$
171,962


$
120,337


43































PERFORMANCE MEASURES



























Per common share:



























Diluted net income (loss) - GAAP
$
0.56


$
0.54


$
0.49


$
0.47


$
(0.16
)




$
2.07


$
0.92





Diluted net income - operating ⁽¹⁾

0.57



0.55



0.53



0.50



0.42



36



2.14



1.63


31



Cash dividends declared

0.16



0.15



0.15



0.12



0.10



60



0.58



0.38


53



Book value

18.24



17.56



17.29



17.02



16.67



9



18.24



16.67


9



Tangible book value⁽³⁾

14.24



13.54



13.25



12.96



13.65



4



14.24



13.65


4































Key performance ratios:



























Return on common equity - GAAP⁽²⁾⁽⁴⁾

12.08

%
11.96

%
11.20

%
11.11

%
(3.57
)
%



11.60

%

5.67

%


Return on common equity - operating^(1)(2)(4)

12.25



12.09



11.97



11.71



9.73






12.01



10.07





Return on tangible common equity - operating^(1)(2)(3)(4)

15.88



15.81



15.79



15.26



11.93






15.69



12.02





Return on assets - GAAP⁽⁴⁾

1.43



1.41



1.30



1.26



(0.40
)





1.35



0.62





Return on assets - operating⁽¹⁾⁽⁴⁾

1.45



1.42



1.39



1.33



1.10






1.40



1.09





Dividend payout ratio - GAAP

28.57



27.78



30.61



25.53



(62.50
)





28.02



41.30





Dividend payout ratio - operating ⁽¹⁾

28.07



27.27



28.30



24.00



23.81






27.10



23.31





Net interest margin (fully taxable equivalent)⁽⁴⁾

3.97



3.95



3.90



3.80



3.63






3.91



3.52





Efficiency ratio - GAAP

56.73



56.82



57.94



57.83



63.03






57.31



59.95





Efficiency ratio - operating ⁽¹⁾

55.83



56.39



55.77



55.75



56.92






55.94



56.67





Average equity to average assets

11.35



11.33



11.21



11.03



11.21






11.24



10.71





Average tangible equity to average assets⁽³⁾

9.04



8.97



8.83



8.82



9.52






8.92



9.29





Average tangible common equity to average assets⁽³⁾

9.04



8.97



8.83



8.82



9.52






8.92



9.29





Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾

11.99



11.61



11.36



11.19



12.05






11.99



12.05

























-








ASSET QUALITY



























Nonperforming loans
$
23,778


$
22,530


$
21,817


$
26,240


$
23,658



1


$
23,778


$
23,658


1



Foreclosed properties

1,305



1,336



2,597



2,714



3,234



(60
)


1,305



3,234


(60
)


Total nonperforming assets (NPAs)

25,083



23,866



24,414



28,954



26,892



(7
)


25,083



26,892


(7
)


Allowance for loan losses

61,203



60,940



61,071



61,085



58,914



4



61,203



58,914


4



Net charge-offs

1,787



1,466



1,359



1,501



1,061



68



6,113



5,998


2



Allowance for loan losses to loans

0.73

%
0.74

%
0.74

%
0.75

%
0.76

%



0.73

%

0.76

%



Net charge-offs to average loans⁽⁴⁾

0.09



0.07



0.07



0.08



0.06






0.07



0.08





NPAs to loans and foreclosed properties

0.30



0.29



0.30



0.35



0.35






0.30



0.35





NPAs to total assets

0.20



0.19



0.20



0.24



0.23






0.20



0.23

































AVERAGE BALANCES ($ in millions)



























Loans
$
8,306


$
8,200


$
8,177


$
7,993


$
7,560



10


$
8,170


$
7,150


14



Investment securities

3,004



2,916



2,802



2,870



2,991



-



2,899



2,847


2



Earning assets

11,534



11,320



11,193



11,076



10,735



7



11,282



10,162


11



Total assets

12,505



12,302



12,213



12,111



11,687



7



12,284



11,015


12



Deposits

10,306



9,950



9,978



9,759



9,624



7



10,000



8,950


12



Shareholders’ equity

1,420



1,394



1,370



1,336



1,310



8



1,380



1,180


17



Common shares - basic (thousands)

79,884



79,806



79,753



79,205



76,768



4



79,662



73,247


9



Common shares - diluted (thousands)

79,890



79,818



79,755



79,215



76,768



4



79,671



73,259


9































AT PERIOD END ($ in millions)



























Loans
$
8,383


$
8,226


$
8,220


$
8,184


$
7,736



8


$
8,383


$
7,736


8



Investment securities

2,903



2,873



2,834



2,731



2,937



(1
)


2,903



2,937


(1
)


Total assets

12,573



12,405



12,386



12,264



11,915



6



12,573



11,915


6



Deposits

10,535



10,229



9,966



9,993



9,808



7



10,535



9,808


7



Shareholders’ equity

1,458



1,402



1,379



1,357



1,303



12



1,458



1,303


12



Common shares outstanding (thousands)

79,234



79,202



79,138



79,123



77,580



2



79,234



77,580


2































⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation and a first quarter 2017 release of disproportionate tax effects lodged in OCI. ⁽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⁾ Annualized. ⁽⁵⁾ Fourth quarter 2018 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.











Selected Financial Information











For the Years Ended December 31,























(in thousands, except per share data)

2018

2017

2016

2015

2014

INCOME SUMMARY











Interest revenue

$
500,080


$
389,720


$
335,020


$
278,532


$
248,432

Interest expense


61,330



33,735



25,236



21,109



25,551

Net interest revenue


438,750



355,985



309,784



257,423



222,881

Provision for credit losses


9,500



3,800



(800
)


3,700



8,500

Noninterest income


92,961



88,260



93,697



72,529



55,554

Total revenue


522,211



440,445



404,281



326,252



269,935

Expenses


306,285



267,611



241,289



211,238



162,865

Income before income tax expense


215,926



172,834



162,992



115,014



107,070

Income tax expense (benefit)


49,815



105,013



62,336



43,436



39,450

Net income


166,111



67,821



100,656



71,578



67,620

Merger-related and other charges


7,345



14,662



8,122



17,995



-

Income tax benefit of merger-related and other charges


(1,494
)


(3,745
)


(3,074
)


(6,388
)


-

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⁾

$
171,962


$
120,337


$
106,680


$
83,185


$
67,620













PERFORMANCE MEASURES











Per common share:











Diluted net income - GAAP

$
2.07


$
0.92


$
1.40


$
1.09


$
1.11

Diluted net income - operating ⁽¹⁾


2.14



1.63



1.48



1.27



1.11

Cash dividends declared


0.58



0.38



0.30



0.22



0.11

Book value


18.24



16.67



15.06



14.02



12.20

Tangible book value⁽³⁾


14.24



13.65



12.95



12.06



12.15













Key performance ratios:











Return on common equity - GAAP⁽²⁾


11.60

%

5.67

%

9.41

%

8.15

%

9.17
%
Return on common equity - operating⁽¹⁾⁽²⁾


12.01



10.07



9.98



9.48



9.17

Return on tangible common equity - operating^(1)(2)(3)


15.69



12.02



11.86



10.24



9.32

Return on assets - GAAP


1.35



0.62



1.00



0.85



0.91

Return on assets - operating⁽¹⁾


1.40



1.09



1.06



0.98



0.91

Dividend payout ratio - GAAP


28.02



41.30



21.43



20.18



9.91

Dividend payout ratio - operating ⁽¹⁾


27.10



23.31



20.27



17.32



9.91

Net interest margin (fully taxable equivalent)


3.91



3.52



3.36



3.30



3.26

Efficiency ratio - GAAP


57.31



59.95



59.80



63.96



58.26

Efficiency ratio - operating ⁽¹⁾


55.94



56.67



57.78



58.51



58.26

Average equity to average assets


11.24



10.71



10.54



10.27



9.69

Average tangible equity to average assets⁽³⁾


8.92



9.29



9.21



9.74



9.67

Average tangible common equity to average assets⁽³⁾


8.92



9.29



9.19



9.66



9.60

Tangible common equity to risk-weighted assets⁽³⁾⁽⁴⁾


11.99



12.05



11.84



12.82



13.82













ASSET QUALITY











Nonperforming loans

$
23,778


$
23,658


$
21,539


$
22,653


$
17,881

Foreclosed properties


1,305



3,234



7,949



4,883



1,726

Total nonperforming assets (NPAs)


25,083



26,892



29,488



27,536



19,607

Allowance for loan losses


61,203



58,914



61,422



68,448



71,619

Net charge-offs


6,113



5,998



6,766



6,259



13,879

Allowance for loan losses to loans


0.73

%

0.76

%

0.89

%

1.14

%

1.53
%
Net charge-offs to average loans


0.07



0.08



0.11



0.12



0.31

NPAs to loans and foreclosed properties


0.30



0.35



0.43



0.46



0.42

NPAs to total assets


0.20



0.23



0.28



0.29



0.26













AVERAGE BALANCES ($ in millions)











Loans

$
8,170


$
7,150


$
6,413


$
5,298


$
4,450

Investment securities


2,899



2,847



2,691



2,368



2,274

Earning assets


11,282



10,162



9,257



7,834



6,880

Total assets


12,284



11,015



10,054



8,462



7,436

Deposits


10,000



8,950



8,177



7,055



6,228

Shareholders’ equity


1,380



1,180



1,059



869



720

Common shares - basic (thousands)


79,662



73,247



71,910



65,488



60,588

Common shares - diluted (thousands)


79,671



73,259



71,915



65,492



60,590













AT PERIOD END ($ in millions)











Loans

$
8,383


$
7,736


$
6,921


$
5,995


$
4,672

Investment securities


2,903



2,937



2,762



2,656



2,198

Total assets


12,573



11,915



10,709



9,616



7,558

Deposits


10,535



9,808



8,638



7,873



6,335

Shareholders’ equity


1,458



1,303



1,076



1,018



740

Common shares outstanding (thousands)


79,234



77,580



70,899



71,484



60,259













⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, 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, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property. ⁽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⁾ 2018 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.




















Non-GAAP Performance Measures Reconciliation



















Selected Financial Information































































2018

2017

For the Twelve Months Ended December 31,


Fourth

Third

Second

First

Fourth


(in thousands, except per share data)
Quarter

Quarter

Quarter

Quarter

Quarter

2018

2017

2016

2015

2014






















Expense reconciliation




















Expenses (GAAP)
$
78,242


$
77,718


$
76,850


$
73,475


$
75,882


$
306,285


$
267,611


$
241,289


$
211,238


$
162,865


Merger-related and other charges

(1,234
)


(592
)


(2,873
)


(2,646
)


(7,358
)


(7,345
)


(14,662
)


(8,122
)


(17,995
)


-


Expenses - operating
$
77,008


$
77,126


$
73,977


$
70,829


$
68,524


$
298,940


$
252,949


$
233,167


$
193,243


$
162,865























Net income reconciliation




















Net income (loss) (GAAP)
$
45,137


$
43,682


$
39,634


$
37,658


$
(11,916
)

$
166,111


$
67,821


$
100,656


$
71,578


$
67,620


Merger-related and other charges

1,234



592



2,873



2,646



7,358



7,345



14,662



8,122



17,995



-


Income tax benefit of merger-related and other charges

(604
)


(141
)


(121
)


(628
)


(1,165
)


(1,494
)


(3,745
)


(3,074
)


(6,388
)


-


Impact of tax reform on remeasurement of deferred tax asset

-



-



-



-



38,199



-



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
$
45,767


$
44,133


$
42,386


$
39,676


$
32,476


$
171,962


$
120,337


$
106,680


$
83,185


$
67,620























Diluted income per common share reconciliation




















Diluted income (loss) per common share (GAAP)
$
0.56


$
0.54


$
0.49


$
0.47


$
(0.16
)

$
2.07


$
0.92


$
1.40


$
1.09


$
1.11


Merger-related and other charges

0.01



0.01



0.04



0.03



0.08



0.07



0.14



0.07



0.18



-


Impact of tax reform on remeasurement of deferred tax asset

-



-



-



-



0.50



-



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
$
0.57


$
0.55


$
0.53


$
0.50


$
0.42


$
2.14


$
1.63


$
1.48


$
1.27


$
1.11























Book value per common share reconciliation




















Book value per common share (GAAP)
$
18.24


$
17.56


$
17.29


$
17.02


$
16.67


$
18.24


$
16.67


$
15.06


$
14.02


$
12.20


Effect of goodwill and other intangibles

(4.00
)


(4.02
)


(4.04
)


(4.06
)


(3.02
)


(4.00
)


(3.02
)


(2.11
)


(1.96
)


(0.05
)

Tangible book value per common share
$
14.24


$
13.54


$
13.25


$
12.96


$
13.65


$
14.24


$
13.65


$
12.95


$
12.06


$
12.15























Return on tangible common equity reconciliation




















Return on common equity (GAAP)

12.08

%

11.96

%

11.20

%

11.11

%

(3.57
)
%

11.60

%

5.67

%

9.41

%

8.15

%

9.17

%
Merger-related and other charges

0.17



0.13



0.77



0.60



1.86



0.41



0.92



0.48



1.33



-


Impact of tax reform on remeasurement of deferred tax asset

-



-



-



-



11.44



-



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

12.25



12.09



11.97



11.71



9.73



12.01



10.07



9.98



9.48



9.17


Effect of goodwill and other intangibles

3.63



3.72



3.82



3.55



2.20



3.68



1.95



1.88



0.76



0.15


Return on tangible common equity - operating

15.88

%

15.81

%

15.79

%

15.26

%

11.93

%

15.69

%

12.02

%

11.86

%

10.24

%

9.32

%





















Return on assets reconciliation




















Return on assets (GAAP)

1.43

%

1.41

%

1.30

%

1.26

%

(0.40
)
%

1.35

%

0.62

%

1.00

%

0.85

%

0.91

%
Merger-related and other charges

0.02



0.01



0.09



0.07



0.20



0.05



0.09



0.05



0.13



-


Impact of tax reform on remeasurement of deferred tax asset

-



-



-



-



1.30



-



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

1.45

%

1.42

%

1.39

%

1.33

%

1.10

%

1.40

%

1.09

%

1.06

%

0.98

%

0.91

%





















Dividend payout ratio reconciliation




















Dividend payout ratio (GAAP)

28.57

%

27.78

%

30.61

%

25.53

%

(62.50
)
%

28.02

%

41.30

%

21.43

%

20.18

%

9.91

%
Merger-related and other charges

(0.50
)


(0.51
)


(2.31
)


(1.53
)


12.04



(0.92
)


(5.65
)


(1.02
)


(2.86
)


-


Impact of tax reform on remeasurement of deferred tax asset

-



-



-



-



74.27



-



(11.61
)


-



-



-


Impairment of deferred tax asset on canceled non-qualified stock options

-



-



-



-



-



-



-



(0.14
)


-



-


Release of disproportionate tax effects lodged in OCI

-



-



-



-



-



-



(0.73
)


-



-



-


Dividend payout ratio - operating

28.07

%

27.27

%

28.30

%

24.00

%

23.81

%

27.10

%

23.31

%

20.27

%

17.32

%

9.91

%





















Efficiency ratio reconciliation




















Efficiency ratio (GAAP)

56.73

%

56.82

%

57.94

%

57.83

%

63.03

%

57.31

%

59.95

%

59.80

%

63.96

%

58.26

%
Merger-related and other charges

(0.90
)


(0.43
)


(2.17
)


(2.08
)


(6.11
)


(1.37
)


(3.28
)


(2.02
)


(5.45
)


-


Efficiency ratio - operating

55.83

%

56.39

%

55.77

%

55.75

%

56.92

%

55.94

%

56.67

%

57.78

%

58.51

%

58.26

%





















Average equity to average assets reconciliation




















Average equity to assets (GAAP)

11.35

%

11.33

%

11.21

%

11.03

%

11.21

%

11.24

%

10.71

%

10.54

%

10.27

%

9.69

%
Effect of goodwill and other intangibles

(2.31
)


(2.36
)


(2.38
)


(2.21
)


(1.69
)


(2.32
)


(1.42
)


(1.33
)


(0.53
)


(0.02
)

Average tangible equity to average assets

9.04



8.97



8.83



8.82



9.52



8.92



9.29



9.21



9.74



9.67


Effect of preferred equity

-



-



-



-



-



-



-



(0.02
)


(0.08
)


(0.07
)

Average tangible common equity to average assets

9.04

%

8.97

%

8.83

%

8.82

%

9.52

%

8.92

%

9.29

%

9.19

%

9.66

%

9.60

%





















Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾



















Tier 1 capital ratio (Regulatory)

12.41

%

12.25

%

11.94

%

11.61

%

12.24

%

12.41

%

12.24

%

11.23

%

11.45

%

12.06

%
Effect of other comprehensive income

(0.44
)


(0.68
)


(0.57
)


(0.50
)


(0.29
)


(0.44
)


(0.29
)


(0.34
)


(0.38
)


(0.35
)

Effect of deferred tax limitation

0.28



0.30



0.33



0.42



0.51



0.28



0.51



1.26



2.05



3.11


Effect of trust preferred

(0.26
)


(0.26
)


(0.34
)


(0.34
)


(0.36
)


(0.26
)


(0.36
)


(0.25
)


(0.08
)


(1.00
)

Effect of preferred equity

-



-



-



-



-



-



-



-



(0.15
)


-


Basel III intangibles transition adjustment

-



-



-



-



(0.05
)


-



(0.05
)


(0.06
)


(0.10
)


-


Basel III disallowed investments

-



-



-



-



-



-



-



-



0.03



-


Tangible common equity to risk-weighted assets

11.99

%

11.61

%

11.36

%

11.19

%

12.05

%

11.99

%

12.05

%

11.84

%

12.82

%

13.82

%





















⁽¹⁾ Fourth quarter 2018 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.










Financial Highlights













Loan Portfolio Composition at Period-End







































2018

2017

Linked Quarter Change

Year over Year Change

Fourth

Third

Second

First

Fourth


(in millions)
Quarter

Quarter

Quarter

Quarter

Quarter


LOANS BY CATEGORY













Owner occupied commercial RE
$
1,648

$
1,673

$
1,682

$
1,898

$
1,924

$
(25
)

$
(276
)
Income producing commercial RE

1,812


1,788


1,821


1,677


1,595


24



217

Commercial & industrial

1,278


1,194


1,193


1,142


1,131


84



147

Commercial construction

796


761


735


691


712


35



84

Equipment financing

565


509


465


423


-


56



565

Total commercial

6,099


5,925


5,896


5,831


5,362


174



737

Residential mortgage

1,049


1,035


1,021


992


974


14



75

Home equity lines of credit

694


702


708


712


731


(8
)


(37
)
Residential construction

211


198


195


190


183


13



28

Consumer

330


366


400


459


486


(36
)


(156
)
Total loans
$
8,383

$
8,226

$
8,220

$
8,184

$
7,736


157



647















LOANS BY MARKET













North Georgia
$
981

$
992

$
1,001

$
1,004

$
1,019


(11
)


(38
)
Atlanta MSA

1,507


1,493


1,533


1,513


1,510


14



(3
)
North Carolina

1,072


1,078


1,067


1,037


1,049


(6
)


23

Coastal Georgia

588


610


623


635


630


(22
)


(42
)
Gainesville MSA

247


235


230


231


248


12



(1
)
East Tennessee

477


460


474


473


475


17



2

South Carolina

1,645


1,586


1,571


1,537


1,486


59



159

Commercial Banking Solutions

1,658


1,530


1,444


1,438


961


128



697

Indirect auto

208


242


277


316


358


(34
)


(150
)
Total loans
$
8,383

$
8,226

$
8,220

$
8,184

$
7,736


157



647

UNITED COMMUNITY BANKS, INC.








Financial Highlights










Loan Portfolio Composition at Year-End






























(in millions)

2018

2017

2016

2015

2014
LOANS BY CATEGORY










Owner occupied commercial RE

$
1,648

$
1,924

$
1,650

$
1,571

$
1,257
Income producing commercial RE


1,812


1,595


1,282


1,021


767
Commercial & industrial


1,278


1,131


1,070


785


710
Commercial construction


796


712


634


518


364
Equipment financing


565


-


-


-


-
Total commercial


6,099


5,362


4,636


3,895


3,098
Residential mortgage


1,049


974


857


764


614
Home equity lines of credit


694


731


655


589


456
Residential construction


211


183


190


176


131
Consumer installment


330


486


583


571


373
Total loans

$
8,383

$
7,736

$
6,921

$
5,995

$
4,672






















LOANS BY MARKET










North Georgia

$
981

$
1,019

$
1,097

$
1,125

$
1,163
Atlanta MSA


1,507


1,510


1,399


1,259


1,243
North Carolina


1,072


1,049


545


549


553
Coastal Georgia


588


630


581


537


456
Gainesville MSA


247


248


248


254


257
East Tennessee


477


475


504


504


280
South Carolina


1,645


1,486


1,233


819


30
Commercial Banking Solutions


1,658


961


855


492


421
Indirect auto


208


358


459


456


269
Total loans

$
8,383

$
7,736

$
6,921

$
5,995

$
4,672

UNITED COMMUNITY BANKS, INC.

























Financial Highlights




























Credit Quality
























































































Fourth Quarter 2018


Third Quarter 2018


Second Quarter 2018




Nonperforming


Foreclosed

Total


Nonperforming


Foreclosed

Total


Nonperforming


Foreclosed

Total


(in thousands)

Loans


Properties

NPAs


Loans


Properties

NPAs


Loans


Properties

NPAs




























NONPERFORMING ASSETS BY CATEGORY























Owner occupied CRE

$
6,421



$
170



$
6,591



$
4,884



$
183



$
5,067



$
5,772



$
812



$
6,584



Income producing CRE


1,160




-




1,160




1,194




156




1,350




991




455




1,446



Commercial & industrial


1,417




-




1,417




1,516




-




1,516




2,180




-




2,180



Commercial construction


605




421




1,026




825




522




1,347




613




576




1,189



Equipment financing


2,677




-




2,677




1,181




-




1,181




1,075




-




1,075



Total commercial


12,280




591




12,871




9,600




861




10,461




10,631




1,843




12,474



Residential mortgage


8,035




654




8,689




8,928




424




9,352




7,918




184




8,102



Home equity lines of credit


2,360




60




2,420




2,814




-




2,814




1,812




550




2,362



Residential construction


288




-




288




455




51




506




637




20




657



Consumer


815




-




815




733




-




733




819




-




819



Total NPAs

$
23,778



$
1,305



$
25,083



$
22,530



$
1,336



$
23,866



$
21,817



$
2,597



$
24,414
































NONPERFORMING ASSETS BY MARKET























North Georgia

$
6,527



$
286



$
6,813



$
7,170



$
361



$
7,531



$
7,583



$
640



$
8,223



Atlanta MSA


1,578




-




1,578




1,778




132




1,910




1,928




132




2,060



North Carolina


3,259




743




4,002




3,690




480




4,170




3,029




750




3,779



Coastal Georgia


1,491




-




1,491




1,498




-




1,498




943




-




943



Gainesville MSA


479




-




479




212




-




212




186




-




186



East Tennessee


1,147




-




1,147




1,403




128




1,531




1,473




143




1,616



South Carolina


4,123




276




4,399




3,280




235




3,515




3,093




362




3,455



Commercial Banking Solutions

4,448




-




4,448




2,871




-




2,871




2,831




570




3,401



Indirect auto


726




-




726




628




-




628




751




-




751



Total NPAs

$
23,778



$
1,305



$
25,083



$
22,530



$
1,336



$
23,866



$
21,817



$
2,597



$
24,414
































NONPERFORMING ASSETS ACTIVITY

























Beginning Balance

$
22,530



$
1,336



$
23,866



$
21,817



$
2,597



$
24,414



$
26,240



$
2,714



$
28,954



Acquisitions


-




-




-




-




-




-




-




-




-



Loans placed on non-accrual

5,829




-




5,829




5,759




-




5,759




3,612




-




3,612



Payments received


(2,780
)



-




(2,780
)



(3,095
)



-




(3,095
)



(5,314
)



-




(5,314
)


Loan charge-offs


(933
)



-




(933
)



(1,588
)



-




(1,588
)



(2,065
)



-




(2,065
)


Foreclosures


(868
)



955




87




(363
)



454




91




(656
)



984




328



Property sales


-




(1,019
)



(1,019
)



-




(1,659
)



(1,659
)



-




(1,029
)



(1,029
)


Write downs


-




(112
)



(112
)



-




(166
)



(166
)



-




(106
)



(106
)


Net gains on sales


-




145




145




-




110




110




-




34




34



Ending Balance

$
23,778



$
1,305



$
25,083



$
22,530



$
1,336



$
23,866



$
21,817



$
2,597



$
24,414


































Fourth Quarter 2018


Third Quarter 2018


Second Quarter 2018
















Net Charge-






Net Charge-






Net Charge-

















Offs to




Offs to




Offs to












Net

Average

Net

Average

Net

Average










(in thousands)

Charge-Offs

Loans⁽¹⁾

Charge-Offs

Loans⁽¹⁾

Charge-Offs

Loans⁽¹⁾






























NET CHARGE-OFFS BY CATEGORY

























Owner occupied CRE

$
(52
)



(0.01
)
%

$
(251
)



(0.06
)
%

$
(578
)



(0.13
)
%










Income producing CRE


399




0.09




1




-




1,421




0.33












Commercial & industrial


(149
)



(0.05
)



418




0.14




16




0.01












Commercial construction


(230
)



(0.12
)



(43
)



(0.02
)



(107
)



(0.06
)











Equipment financing


599




0.44




482




0.39




(49
)



(0.04
)











Total commercial


567




0.04




607




0.04




703




0.05












Residential mortgage


290




0.11




171




0.07




11




-












Home equity lines of credit


382




0.22




279




0.16




21




0.01












Residential construction


(36
)



(0.07
)



(164
)



(0.33
)



(58
)



(0.12
)











Consumer


584




0.67




573




0.60




682




0.64












Total

$
1,787




0.09



$
1,466




0.07



$
1,359




0.07









































NET CHARGE-OFFS BY MARKET


























North Georgia

$
543




0.22

%

$
483




0.19

%

$
246




0.10

%










Atlanta MSA


(159
)



(0.04
)



99




0.03




103




0.03












North Carolina


68




0.03




(87
)



(0.03
)



1,268




0.48












Coastal Georgia


(86
)



(0.06
)



24




0.02




19




0.01












Gainesville MSA


333




0.56




(48
)



(0.08
)



(2
)



-












East Tennessee


(111
)



(0.09
)



(1
)



-




76




0.06












South Carolina


57




0.01




418




0.11




(1,057
)



(0.27
)











Commercial Banking Solutions

948




0.23




403




0.11




381




0.11












Indirect auto


194




0.34




175




0.27




325




0.44












Total

$
1,787




0.09



$
1,466




0.07



$
1,359




0.07









































⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.








Consolidated Statements of Income (Unaudited)



















Three Months Ended

Twelve Months Ended


December 31,

December 31,
(in thousands, except per share data)

2018

2017

2018

2017









Interest revenue:








Loans, including fees

$
112,087

$
87,234


$
420,383


$
315,050
Investment securities, including tax exempt of $1,140, $909, $4,189, and $2,216


21,237


19,023



77,685



72,388
Deposits in banks and short-term investments


530


500



2,012



2,282
Total interest revenue


133,854


106,757



500,080



389,720









Interest expense:








Deposits:








NOW and interest-bearing demand


3,073


1,433



7,390



3,365
Money market


4,078


2,095



12,097



7,033
Savings


33


46



150



135
Time


7,006


2,272



19,906



6,529
Total deposit interest expense


14,190


5,846



39,543



17,062
Short-term borrowings


340


175



1,112



352
Federal Home Loan Bank advances


794


1,492



6,345



6,095
Long-term debt


3,651


1,736



14,330



10,226
Total interest expense


18,975


9,249



61,330



33,735
Net interest revenue


114,879


97,508



438,750



355,985
Provision for credit losses


2,100


1,200



9,500



3,800
Net interest revenue after provision for credit losses


112,779


96,308



429,250



352,185









Noninterest income:








Service charges and fees


9,166


8,770



35,997



38,295
Mortgage loan and other related fees


3,082


4,885



19,010



18,320
Brokerage fees


1,593


1,068



5,191



4,633
Gains from sales of SBA/USDA loans


2,493


3,102



9,277



10,493
Securities gains (losses), net


646


(148
)


(656
)


42
Other


6,065


4,251



24,142



16,477
Total noninterest income


23,045


21,928



92,961



88,260
Total revenue


135,824


118,236



522,211



440,445









Noninterest expenses:








Salaries and employee benefits


45,631


41,042



181,015



153,098
Communications and equipment


6,206


5,217



21,277



19,660
Occupancy


5,842


5,542



22,781



20,344
Advertising and public relations


1,650


895



5,991



4,242
Postage, printing and supplies


1,520


1,825



6,416



5,952
Professional fees


4,105


3,683



15,540



12,074
FDIC assessments and other regulatory charges


1,814


1,776



8,491



6,534
Amortization of intangibles


1,420


1,760



6,846



4,845
Merger-related and other charges


965


6,841



5,414



13,901
Other


9,089


7,301



32,514



26,961
Total noninterest expenses


78,242


75,882



306,285



267,611
Net income before income taxes


57,582


42,354



215,926



172,834
Income tax expense


12,445


54,270



49,815



105,013
Net income

$
45,137

$
(11,916
)

$
166,111


$
67,821









Net income available to common shareholders

$
44,801

$
(11,986
)

$
164,927


$
67,250









Earnings per common share:








Basic


0.56


(0.16
)


2.07



0.92
Diluted


0.56


(0.16
)


2.07



0.92
Weighted average common shares outstanding:








Basic


79,884


76,768



79,662



73,247
Diluted


79,890


76,768



79,671



73,259

UNITED COMMUNITY BANKS, INC.




Consolidated Balance Sheets (Unaudited)











December 31,

December 31,
(in thousands, except share and per share data)

2018

2017





ASSETS




Cash and due from banks

$
126,083


$
129,108

Interest-bearing deposits in banks


201,182



185,167

Cash and cash equivalents


327,265



314,275

Debt securities available for sale


2,628,467



2,615,850

Debt securities held to maturity (fair value $268,803 and $321,276)


274,407



321,094

Loans held for sale (includes $18,935 and $26,252 at fair value)


18,935



32,734

Loans and leases, net of unearned income


8,383,401



7,735,572

Less allowance for loan and lease losses


(61,203
)


(58,914
)
Loans, net


8,322,198



7,676,658

Premises and equipment, net


206,140



208,852

Bank owned life insurance


192,616



188,970

Accrued interest receivable


35,413



32,459

Net deferred tax asset


64,224



88,049

Derivative financial instruments


24,705



22,721

Goodwill and other intangible assets


324,072



244,397

Other assets


154,750



169,401

Total assets

$
12,573,192


$
11,915,460

LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
3,210,220


$
3,087,797

NOW and interest-bearing demand


2,274,775



2,131,939

Money market


2,097,526



2,016,748

Savings


669,886



651,742

Time


1,598,391



1,548,460

Brokered


683,715



371,011

Total deposits


10,534,513



9,807,697

Short-term borrowings


-



50,000

Federal Home Loan Bank advances


160,000



504,651

Long-term debt


267,189



120,545

Derivative financial instruments


26,433



25,376

Accrued expenses and other liabilities


127,503



103,857

Total liabilities


11,115,638



10,612,126

Shareholders' equity:




Common stock, $1 par value; 150,000,000 shares authorized; 79,234,077 and 77,579,561 shares issued and outstanding


79,234



77,580

Common stock issuable; 674,499 and 607,869 shares


10,744



9,083

Capital surplus


1,499,584



1,451,814

Accumulated deficit


(90,419
)


(209,902
)
Accumulated other comprehensive loss


(41,589
)


(25,241
)
Total shareholders' equity


1,457,554



1,303,334

Total liabilities and shareholders' equity

$
12,573,192


$
11,915,460

UNITED COMMUNITY BANKS, INC.











Average Consolidated Balance Sheets and Net Interest Analysis








For the Three Months Ended December 31,
























2018

2017

Average


Avg.


Average


Avg.

(dollars in thousands, fully taxable equivalent (FTE))
Balance

Interest
Rate


Balance

Interest
Rate

Assets:











Interest-earning assets:











Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾
$
8,306,270


$
112,020
5.35
%

$
7,560,451


$
87,285
4.58
%
Taxable securities ⁽³⁾

2,843,085



20,097
2.83



2,853,671



18,114
2.54

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

161,284



1,535
3.81



137,080



1,488
4.34

Federal funds sold and other interest-earning assets

222,931



845
1.52



184,287



676
1.47













Total interest-earning assets (FTE)

11,533,570



134,497
4.63



10,735,489



107,563
3.98

Noninterest-earning assets:











Allowance for loan losses

(61,992
)






(59,508
)




Cash and due from banks

125,066







120,478





Premises and equipment

214,590







209,042





Other assets ⁽³⁾

694,215







681,308





Total assets
$
12,505,449






$
11,686,809

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
2,046,224



3,073
0.60


$
2,078,239



1,433
0.27

Money market

2,215,444



4,078
0.73



2,243,279



2,095
0.37

Savings

675,265



33
0.02



636,057



46
0.03

Time

1,584,011



4,297
1.08



1,476,362



1,918
0.52

Brokered time deposits

490,748



2,709
2.19



115,235



354
1.22

Total interest-bearing deposits

7,011,692



14,190
0.80



6,549,172



5,846
0.35













Federal funds purchased and other borrowings

55,095



340
2.45



39,704



175
1.75

Federal Home Loan Bank advances

140,869



794
2.24



458,028



1,492
1.29

Long-term debt

272,313



3,651
5.32



120,885



1,736
5.70

Total borrowed funds

468,277



4,785
4.05



618,617



3,403
2.18













Total interest-bearing liabilities

7,479,969



18,975
1.01



7,167,789



9,249
0.51

Noninterest-bearing liabilities:











Noninterest-bearing deposits

3,294,385







3,074,898





Other liabilities

311,461







134,211





Total liabilities

11,085,815







10,376,898





Shareholders' equity

1,419,634







1,309,911





Total liabilities and shareholders' equity
$
12,505,449






$
11,686,809

















Net interest revenue (FTE)


$
115,522





$
98,314


Net interest-rate spread (FTE)



3.62
%




3.47
%












Net interest margin (FTE) ⁽⁴⁾



3.97
%




3.63
%












⁽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% in 2018 and 39% in 2017, 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 where 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 losses of $59.5 million in 2018 and pretax unrealized gains of $3.32 million in 2017 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.

UNITED COMMUNITY BANKS, INC.











Average Consolidated Balance Sheets and Net Interest Analysis








For the Twelve Months Ended December 31,
























2018

2017

Average


Avg.


Average


Avg.

(dollars in thousands, fully taxable equivalent (FTE))
Balance

Interest
Rate


Balance

Interest
Rate

Assets:











Interest-earning assets:











Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾
$
8,170,143


$
420,001
5.14
%

$
7,150,211


$
315,138
4.41
%
Taxable securities ⁽³⁾

2,745,715



73,496
2.68



2,761,983



70,172
2.54

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

152,855



5,641
3.69



85,415



3,627
4.25

Federal funds sold and other interest-earning assets

213,137



2,968
1.39



164,314



2,966
1.81













Total interest-earning assets (FTE)

11,281,850



502,106
4.45



10,161,923



391,903
3.86

Noninterest-earning assets:











Allowance for loan losses

(61,443
)






(60,602
)




Cash and due from banks

135,345







107,053





Premises and equipment

216,646







198,970





Other assets ⁽³⁾

711,671







607,174





Total assets
$
12,284,069






$
11,014,518

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
2,018,404



7,390
0.37


$
1,950,827



3,365
0.17

Money market

2,206,643



12,097
0.55



2,136,336



7,033
0.33

Savings

672,735



150
0.02



591,831



135
0.02

Time

1,547,221



12,585
0.81



1,338,859



5,417
0.40

Brokered time deposits

347,072



7,321
2.11



108,891



1,112
1.02

Total interest-bearing deposits

6,792,075



39,543
0.58



6,126,744



17,062
0.28













Federal funds purchased and other borrowings

57,376



1,112
1.94



26,856



352
1.31

Federal Home Loan Bank advances

328,871



6,345
1.93



576,472



6,095
1.06

Long-term debt

290,004



14,330
4.94



156,327



10,226
6.54

Total borrowed funds

676,251



21,787
3.22



759,655



16,673
2.19













Total interest-bearing liabilities

7,468,326



61,330
0.82



6,886,399



33,735
0.49

Noninterest-bearing liabilities:











Noninterest-bearing deposits

3,207,625







2,823,005





Other liabilities

227,980







124,832





Total liabilities

10,903,931







9,834,236





Shareholders' equity

1,380,138







1,180,282





Total liabilities and shareholders' equity
$
12,284,069






$
11,014,518

















Net interest revenue (FTE)


$
440,776





$
358,168


Net interest-rate spread (FTE)



3.63
%




3.37
%












Net interest margin (FTE) ⁽⁴⁾



3.91
%




3.52
%












⁽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% in 2018 and 39% in 2017, 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 where 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 losses of $45.2 million in 2018 and pretax unrealized gains of $4.33 million in 2017 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 SC. The company’s banking subsidiary, United Community Bank, with $12.5 billion in assets is one of the southeast region’s largest full-service banks, operating 149 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. 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 the last five years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2018, for the fifth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America. Additional information about the company and the bank’s full range of products and services 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 dividend payout ratio,” “operating efficiency ratio,” “average tangible equity to average assets,” “average tangible common equity to average assets” and “tangible common equity to risk-weighted 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.

Caution About Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in United’s Form 10-K for the year ended December 31, 2017 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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

Company Name:	United Community Banks Inc.
Stock Symbol:	UCBI
Market:	NASDAQ
Website:	ucbi.com

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