UCBI - United Community Banks Inc. reports EPS of $0.55 and ROA of 1.44% for Q1 2019

April, 23 2019 05:00 PM United Community Banks Inc.

GREENVILLE, S,C., April 23, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its first quarter financial results, including solid year-over-year loan and deposit growth, improved operating efficiency and continued strong asset quality. Reported diluted earnings per share were $0.55, an increase of $0.08 or 17% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.56, up 12% over last year. United’s return on assets (“ROA”) reached 1.44% with a return on equity of 11.9%. On an operating basis, United’s ROA was 1.45% with a return on tangible common equity of 15.5%.

During the quarter, United benefitted from continued net interest margin expansion. Higher loan yields and an intentional balance sheet deleveraging strategy, including a reduction of $183 million in securities and wholesale borrowings were primary factors in the net interest margin expansion. The company also achieved more than 5% annualized loan growth (7% excluding the planned runoff of the discontinued indirect auto portfolio). Core transaction deposits grew by $135 million, or 8% annualized, and total customer deposits increased by $125 million during the quarter. United’s expense management resulted in a 55.32% efficiency ratio or 54.78% on an operating basis—both results are historical lows for the company.

“Our first quarter performance begins what we believe will be an outstanding year,” said Lynn Harton, President and Chief Executive Officer of United. “We continue to invest in thoughtful growth and in hiring the right bankers in the right markets, while maintaining strong expense discipline. We are proud to have reported a second consecutive quarter with a 1.45% return on assets on an operating basis, a historically high level. This performance would simply not be possible without our outstanding team, which earned United the distinction this quarter of being named one of the “World’s Best Banks 2019” by Forbes. In February, we announced that our team will be expanding with the acquisition of First Madison Bank & Trust in Athens, Georgia. We look forward to welcoming First Madison and to adding loyal customers and another attractive market to our footprint in the second quarter.”

First Quarter 2019 Financial Highlights:

GAAP EPS growth of 17% versus last year, or 12% on an operating basis
Return on assets of 1.44%, or 1.45%, excluding merger-related and other charges
Return on common equity of 11.9%
Return on tangible common equity of 15.5%, excluding merger-related and other charges
Loan growth, excluding planned runoff of the indirect portfolio, of 7% on an annualized basis
Loan production of $782 million, as compared to $666 million in Q1 2018
Loan growth of $110 million more than funded by core transaction deposit growth of $135 million
Expansion of the net interest margin to 4.10%, up 13 basis points from the fourth quarter of 2018 and up 30 basis points from a year ago
Efficiency ratio of 55.3%, or 54.8%, excluding merger-related and other charges
Net charge-offs of fifteen basis points, up six basis points from last quarter, but remain at a historically low level
Nonperforming assets of 0.20% of total assets, compared with 0.20% at December 31, 2018 and 0.24% at March 31, 2018
Repurchased 305,000 common shares in Q1, or $7.8 million as part of authorized $50 million repurchase program
Intentional balance sheet deleveraging, resulting in securities decreasing by $183 million ($122 million average), offset by a reduction in wholesale borrowings

Conference Call

United will hold a conference call, Wednesday, April 24, 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 9567597. 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






















































First


2019


2018



Quarter


First


Fourth


Third


Second


First


2019-2018
(in thousands, except per share data)

Quarter


Quarter


Quarter


Quarter


Quarter


Change
INCOME SUMMARY


















Interest revenue
$
136,516


$
133,854


$
128,721


$
122,215


$
115,290





Interest expense

20,882



18,975



16,611



13,739



12,005





Net interest revenue

115,634



114,879



112,110



108,476



103,285



12

%
Provision for credit losses

3,300



2,100



1,800



1,800



3,800



(13
)

Noninterest income

20,968



23,045



24,180



23,340



22,396



(6
)

Total revenue

133,302



135,824



134,490



130,016



121,881



9


Expenses

76,084



78,242



77,718



76,850



73,475



4


Income before income tax expense

57,218



57,582



56,772



53,166



48,406



18


Income tax expense

12,956



12,445



13,090



13,532



10,748



21


Net income

44,262



45,137



43,682



39,634



37,658



18


Merger-related and other charges

739



1,234



592



2,873



2,646





Income tax benefit of merger-related and other charges

(172
)


(604
)


(141
)


(121
)


(628
)




Net income - operating ⁽¹⁾
$
44,829


$
45,767


$
44,133


$
42,386


$
39,676



13





















PERFORMANCE MEASURES


















Per common share:


















Diluted net income - GAAP
$
0.55


$
0.56


$
0.54


$
0.49


$
0.47



17


Diluted net income - operating ⁽¹⁾

0.56



0.57



0.55



0.53



0.50



12


Cash dividends declared

0.16



0.16



0.15



0.15



0.12



33


Book value

18.93



18.24



17.56



17.29



17.02



11


Tangible book value⁽³⁾

14.93



14.24



13.54



13.25



12.96



15





















Key performance ratios:


















Return on common equity - GAAP⁽²⁾⁽⁴⁾

11.85

%
12.08

%
11.96

%
11.20

%
11.11

%



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

12.00



12.25



12.09



11.97



11.71





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

15.46



15.88



15.81



15.79



15.26





Return on assets - GAAP⁽⁴⁾

1.44



1.43



1.41



1.30



1.26





Return on assets - operating⁽¹⁾⁽⁴⁾

1.45



1.45



1.42



1.39



1.33





Dividend payout ratio - GAAP

29.09



28.57



27.78



30.61



25.53





Dividend payout ratio - operating ⁽¹⁾

28.57



28.07



27.27



28.30



24.00





Net interest margin (fully taxable equivalent)⁽⁴⁾

4.10



3.97



3.95



3.90



3.80





Efficiency ratio - GAAP

55.32



56.73



56.82



57.94



57.83





Efficiency ratio - operating ⁽¹⁾

54.78



55.83



56.39



55.77



55.75





Average equity to average assets

11.82



11.35



11.33



11.21



11.03





Average tangible common equity to average assets⁽³⁾

9.53



9.04



8.97



8.83



8.82





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

12.48



12.00



11.61



11.36



11.19
























ASSET QUALITY


















Nonperforming loans
$
23,624


$
23,778


$
22,530


$
21,817


$
26,240



(10
)

Foreclosed properties

1,127



1,305



1,336



2,597



2,714



(58
)

Total nonperforming assets (NPAs)

24,751



25,083



23,866



24,414



28,954



(15
)

Allowance for loan losses

61,642



61,203



60,940



61,071



61,085



1


Net charge-offs

3,130



1,787



1,466



1,359



1,501



109


Allowance for loan losses to loans

0.73

%
0.73

%
0.74

%
0.74

%
0.75

%



Net charge-offs to average loans⁽⁴⁾

0.15



0.09



0.07



0.07



0.08





NPAs to loans and foreclosed properties

0.29



0.30



0.29



0.30



0.35





NPAs to total assets

0.20



0.20



0.19



0.20



0.24
























AVERAGE BALANCES ($ in millions)


















Loans
$
8,430


$
8,306


$
8,200


$
8,177


$
7,993



5


Investment securities

2,883



3,004



2,916



2,802



2,870



-


Earning assets

11,498



11,534



11,320



11,193



11,076



4


Total assets

12,509



12,505



12,302



12,213



12,111



3


Deposits

10,361



10,306



9,950



9,978



9,759



6


Shareholders’ equity

1,478



1,420



1,394



1,370



1,336



11


Common shares - basic (thousands)

79,807



79,884



79,806



79,753



79,205



1


Common shares - diluted (thousands)

79,813



79,890



79,818



79,755



79,215



1





















AT PERIOD END ($ in millions)


















Loans
$
8,493


$
8,383


$
8,226


$
8,220


$
8,184



4


Investment securities

2,720



2,903



2,873



2,834



2,731



-


Total assets

12,506



12,573



12,405



12,386



12,264



2


Deposits

10,534



10,535



10,229



9,966



9,993



5


Shareholders’ equity

1,508



1,458



1,402



1,379



1,357



11


Common shares outstanding (thousands)

79,035



79,234



79,202



79,138



79,123



-





















⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits. ⁽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⁾ First quarter 2019 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.













Non-GAAP Performance Measures Reconciliation










Selected Financial Information













































2019



2018



First


Fourth


Third


Second


First

(in thousands, except per share data)
Quarter


Quarter


Quarter


Quarter


Quarter
















Expense reconciliation














Expenses (GAAP)
$
76,084



$
78,242



$
77,718



$
76,850



$
73,475


Merger-related and other charges

(739
)



(1,234
)



(592
)



(2,873
)



(2,646
)

Expenses - operating
$
75,345



$
77,008



$
77,126



$
73,977



$
70,829

















Net income reconciliation














Net income (GAAP)
$
44,262



$
45,137



$
43,682



$
39,634



$
37,658


Merger-related and other charges

739




1,234




592




2,873




2,646


Income tax benefit of merger-related and other charges

(172
)



(604
)



(141
)



(121
)



(628
)

Net income - operating
$
44,829



$
45,767



$
44,133



$
42,386



$
39,676


Diluted income per common share reconciliation













Diluted income per common share (GAAP)
$
0.55



$
0.56



$
0.54



$
0.49



$
0.47


Merger-related and other charges

0.01




0.01




0.01




0.04




0.03


Diluted income per common share - operating
$
0.56



$
0.57



$
0.55



$
0.53



$
0.50

















Book value per common share reconciliation














Book value per common share (GAAP)
$
18.93



$
18.24



$
17.56



$
17.29



$
17.02


Effect of goodwill and other intangibles

(4.00
)



(4.00
)



(4.02
)



(4.04
)



(4.06
)

Tangible book value per common share
$
14.93



$
14.24



$
13.54



$
13.25



$
12.96

















Return on tangible common equity reconciliation













Return on common equity (GAAP)

11.85

%


12.08

%


11.96

%


11.20

%


11.11

%
Merger-related and other charges

0.15




0.17




0.13




0.77




0.60


Return on common equity - operating

12.00




12.25




12.09




11.97




11.71


Effect of goodwill and other intangibles

3.46




3.63




3.72




3.82




3.55


Return on tangible common equity - operating

15.46

%


15.88

%


15.81

%


15.79

%


15.26

%















Return on assets reconciliation














Return on assets (GAAP)

1.44

%


1.43

%


1.41

%


1.30

%


1.26

%
Merger-related and other charges

0.01




0.02




0.01




0.09




0.07


Return on assets - operating

1.45

%


1.45

%


1.42

%


1.39

%


1.33

%















Dividend payout ratio reconciliation














Dividend payout ratio (GAAP)

29.09

%


28.57

%


27.78

%


30.61

%


25.53

%
Merger-related and other charges

(0.52
)



(0.50
)



(0.51
)



(2.31
)



(1.53
)

Dividend payout ratio - operating

28.57

%


28.07

%


27.27

%


28.30

%


24.00

%















Efficiency ratio reconciliation














Efficiency ratio (GAAP)

55.32

%


56.73

%


56.82

%


57.94

%


57.83

%
Merger-related and other charges

(0.54
)



(0.90
)



(0.43
)



(2.17
)



(2.08
)

Efficiency ratio - operating

54.78

%


55.83

%


56.39

%


55.77

%


55.75

%















Average equity to average assets reconciliation














Average equity to assets (GAAP)

11.82

%


11.35

%


11.33

%


11.21

%


11.03

%
Effect of goodwill and other intangibles

(2.29
)



(2.31
)



(2.36
)



(2.38
)



(2.21
)

Average tangible common equity to average assets

9.53

%


9.04

%


8.97

%


8.83

%


8.82

%















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










Tier 1 capital ratio (Regulatory)

12.69

%


12.42

%


12.25

%


11.94

%


11.61

%
Effect of other comprehensive income

(0.17
)



(0.44
)



(0.68
)



(0.57
)



(0.50
)

Effect of deferred tax limitation

0.22




0.28




0.30




0.33




0.42


Effect of trust preferred

(0.26
)



(0.26
)



(0.26
)



(0.34
)



(0.34
)

Tangible common equity to risk-weighted assets

12.48

%


12.00

%


11.61

%


11.36

%


11.19

%















⁽¹⁾ First quarter 2019 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.










Financial Highlights













Loan Portfolio Composition at Period-End











































2019


2018


Linked



Year over


First

Fourth

Third

Second

First


Quarter



Year

(in millions)
Quarter

Quarter

Quarter

Quarter

Quarter


*Change*



Change

LOANS BY CATEGORY













Owner occupied commercial RE
$
1,620

$
1,648

$
1,673

$
1,682

$
1,898

$
(28
)

$
(278
)
Income producing commercial RE

1,867


1,812


1,788


1,821


1,677


55



190

Commercial & industrial

1,284


1,278


1,194


1,193


1,142


6



142

Commercial construction

866


796


761


735


691


70



175

Equipment financing

606


565


509


465


423


41



183

Total commercial

6,243


6,099


5,925


5,896


5,831


144



412

Residential mortgage

1,064


1,049


1,035


1,021


992


15



72

Home equity lines of credit

684


694


702


708


712


(10
)


(28
)
Residential construction

200


211


198


195


190


(11
)


10

Consumer

302


330


366


400


459


(28
)


(157
)
Total loans
$
8,493

$
8,383

$
8,226

$
8,220

$
8,184


110



309















LOANS BY MARKET













North Georgia
$
970

$
981

$
992

$
1,001

$
1,004


(11
)


(34
)
Atlanta MSA

1,524


1,507


1,493


1,533


1,513


17



11

North Carolina

1,074


1,072


1,078


1,067


1,037


2



37

Coastal Georgia

603


588


610


623


635


15



(32
)
Gainesville MSA

243


247


235


230


231


(4
)


12

East Tennessee

458


477


460


474


473


(19
)


(15
)
South Carolina

1,674


1,645


1,586


1,571


1,537


29



137

Commercial Banking Solutions

1,766


1,658


1,530


1,444


1,438


108



328

Indirect auto

181


208


242


277


316


(27
)


(135
)
Total loans
$
8,493

$
8,383

$
8,226

$
8,220

$
8,184


110



309

UNITED COMMUNITY BANKS, INC.















Financial Highlights


















Credit Quality


























































First Quarter 2019

Fourth Quarter 2018

Third 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

$
7,030


$
145


$
7,175


$
6,421


$
170


$
6,591


$
4,884


$
183


$
5,067

Income producing CRE


1,276



-



1,276



1,160



-



1,160



1,194



156



1,350

Commercial & industrial


1,666



-



1,666



1,417



-



1,417



1,516



-



1,516

Commercial construction


473



421



894



605



421



1,026



825



522



1,347

Equipment financing


1,813



-



1,813



2,677



-



2,677



1,181



-



1,181

Total commercial


12,258



566



12,824



12,280



591



12,871



9,600



861



10,461

Residential mortgage


8,281



336



8,617



8,035



654



8,689



8,928



424



9,352

Home equity lines of credit


2,233



185



2,418



2,360



60



2,420



2,814



-



2,814

Residential construction


347



40



387



288



-



288



455



51



506

Consumer


505



-



505



815



-



815



733



-



733

Total NPAs

$
23,624


$
1,127


$
24,751


$
23,778


$
1,305


$
25,083


$
22,530


$
1,336


$
23,866




















NONPERFORMING ASSETS BY MARKET
















North Georgia

$
5,848


$
430


$
6,278


$
6,527


$
286


$
6,813


$
7,170


$
361


$
7,531

Atlanta MSA


1,951



-



1,951



1,578



-



1,578



1,778



132



1,910

North Carolina


3,464



484



3,948



3,259



743



4,002



3,690



480



4,170

Coastal Georgia


1,881



-



1,881



1,491



-



1,491



1,498



-



1,498

Gainesville MSA


187



-



187



479



-



479



212



-



212

East Tennessee


1,555



-



1,555



1,147



-



1,147



1,403



128



1,531

South Carolina


4,476



213



4,689



4,123



276



4,399



3,280



235



3,515

Commercial Banking Solutions


3,804



-



3,804



4,448



-



4,448



2,871



-



2,871

Indirect auto


458



-



458



726



-



726



628



-



628

Total NPAs

$
23,624


$
1,127


$
24,751


$
23,778


$
1,305


$
25,083


$
22,530


$
1,336


$
23,866




















NONPERFORMING ASSETS ACTIVITY
















Beginning Balance

$
23,778


$
1,305


$
25,083


$
22,530


$
1,336


$
23,866


$
21,817


$
2,597


$
24,414

Loans placed on non-accrual


6,759



-



6,759



5,829



-



5,829



5,759



-



5,759

Payments received


(3,520
)


-



(3,520
)


(2,780
)


-



(2,780
)


(3,095
)


-



(3,095
)
Loan charge-offs


(2,714
)


-



(2,714
)


(933
)


-



(933
)


(1,588
)


-



(1,588
)
Foreclosures


(679
)


751



72



(868
)


955



87



(363
)


454



91

Property sales


-



(965
)


(965
)


-



(1,019
)


(1,019
)


-



(1,659
)


(1,659
)
Write downs


-



(6
)


(6
)


-



(112
)


(112
)


-



(166
)


(166
)
Net gains on sales


-



42



42



-



145



145



-



110



110

Ending Balance

$
23,624


$
1,127


$
24,751


$
23,778


$
1,305


$
25,083


$
22,530


$
1,336


$
23,866






















First Quarter 2019

Fourth Quarter 2018

Third Quarter 2018






(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 CRE

$
(64
)


(0.02
)
%
$
(52
)


(0.01
)
%
$
(251
)


(0.06
)
%




Income producing CRE


177



0.04



399



0.09



1



-







Commercial & industrial


1,356



0.43



(149
)


(0.05
)


418



0.14







Commercial construction


(325
)


(0.16
)


(230
)


(0.12
)


(43
)


(0.02
)






Equipment financing


1,281



0.89



599



0.44



482



0.39







Total commercial


2,425



0.16



567



0.04



607



0.04







Residential mortgage


13



-



290



0.11



171



0.07







Home equity lines of credit


215



0.13



382



0.22



279



0.16







Residential construction


(22
)


(0.04
)


(36
)


(0.07
)


(164
)


(0.33
)






Consumer


499



0.64



584



0.67



573



0.60







Total

$
3,130



0.15


$
1,787



0.09


$
1,466



0.07


























NET CHARGE-OFFS BY MARKET
















North Georgia

$
263



0.11

%
$
543



0.22

%
$
483



0.19

%




Atlanta MSA


107



0.03



(159
)


(0.04
)


99



0.03







North Carolina


307



0.12



68



0.03



(87
)


(0.03
)






Coastal Georgia


(4
)


-



(86
)


(0.06
)


24



0.02







Gainesville MSA


(8
)


(0.01
)


333



0.56



(48
)


(0.08
)






East Tennessee


627



0.54



(111
)


(0.09
)


(1
)


-







South Carolina


328



0.08



57



0.01



418



0.11







Commercial Banking Solutions


1,351



0.32



948



0.23



403



0.11







Indirect auto


159



0.33



194



0.34



175



0.27







Total

$
3,130



0.15


$
1,787



0.09


$
1,466



0.07


























⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.




Consolidated Statements of Income (Unaudited)











Three Months Ended


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


2019



2018






Interest revenue:




Loans, including fees

$
115,259


$
96,469

Investment securities, including tax exempt of $1,169 and $972


20,818



18,295

Deposits in banks and short-term investments


439



526

Total interest revenue


136,516



115,290






Interest expense:




Deposits:




NOW and interest-bearing demand


3,536



1,113

Money market


4,205



2,175

Savings


32



49

Time


8,184



2,956

Total deposit interest expense


15,957



6,293

Short-term borrowings


161



300

Federal Home Loan Bank advances


1,422



2,124

Long-term debt


3,342



3,288

Total interest expense


20,882



12,005

Net interest revenue


115,634



103,285

Provision for credit losses


3,300



3,800

Net interest revenue after provision for credit losses


112,334



99,485






Noninterest income:




Service charges and fees


8,453



8,925

Mortgage loan and other related fees


3,748



5,359

Brokerage fees


1,337



872

Gains from sales of SBA/USDA loans


1,303



1,778

Securities losses, net


(267
)


(940
)
Other


6,394



6,402

Total noninterest income


20,968



22,396

Total revenue


133,302



121,881






Noninterest expenses:




Salaries and employee benefits


47,503



42,875

Communications and equipment


5,788



4,632

Occupancy


5,584



5,613

Advertising and public relations


1,286



1,515

Postage, printing and supplies


1,586



1,637

Professional fees


3,161



4,044

FDIC assessments and other regulatory charges


1,710



2,476

Amortization of intangibles


1,293



1,898

Merger-related and other charges


546



2,054

Other


7,627



6,731

Total noninterest expenses


76,084



73,475

Net income before income taxes


57,218



48,406

Income tax expense


12,956



10,748

Net income

$
44,262


$
37,658






Net income available to common shareholders

$
43,947


$
37,381






Earnings per common share:




Basic

$
0.55


$
0.47

Diluted


0.55



0.47

Weighted average common shares outstanding:




Basic


79,807



79,205

Diluted


79,813



79,215

UNITED COMMUNITY BANKS, INC.




Consolidated Balance Sheets (Unaudited)











March 31,

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

2019

2018





ASSETS




Cash and due from banks

$
118,659


$
126,083

Interest-bearing deposits in banks


206,836



201,182

Cash and cash equivalents


325,495



327,265

Debt securities available for sale


2,454,625



2,628,467

Debt securities held to maturity (fair value $265,117 and $268,803)


265,329



274,407

Loans held for sale at fair value


26,341



18,935

Loans and leases, net of unearned income


8,493,254



8,383,401

Less allowance for loan and lease losses


(61,642
)


(61,203
)
Loans, net


8,431,612



8,322,198

Premises and equipment, net


214,022



206,140

Bank owned life insurance


193,489



192,616

Accrued interest receivable


35,126



35,413

Net deferred tax asset


51,055



64,224

Derivative financial instruments


25,924



24,705

Goodwill and other intangible assets


322,779



324,072

Other assets


160,030



154,750

Total assets

$
12,505,827


$
12,573,192

LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
3,313,861


$
3,210,220

NOW and interest-bearing demand


2,205,117



2,274,775

Money market


2,106,045



2,097,526

Savings


681,739



669,886

Time


1,668,563



1,598,391

Brokered


558,981



683,715

Total deposits


10,534,306



10,534,513

Federal Home Loan Bank advances


40,000



160,000

Long-term debt


257,259



267,189

Derivative financial instruments


18,789



26,433

Accrued expenses and other liabilities


147,315



127,503

Total liabilities


10,997,669



11,115,638

Shareholders' equity:




Common stock, $1 par value; 150,000,000 shares authorized;




79,035,459 and 79,234,077 shares issued and outstanding


79,035



79,234

Common stock issuable; 621,491 and 674,499 shares


10,291



10,744

Capital surplus


1,494,400



1,499,584

Accumulated deficit


(59,573
)


(90,419
)
Accumulated other comprehensive loss


(15,995
)


(41,589
)
Total shareholders' equity


1,508,158



1,457,554

Total liabilities and shareholders' equity

$
12,505,827


$
12,573,192

UNITED COMMUNITY BANKS, INC.











Average Consolidated Balance Sheets and Net Interest Analysis








For the Three Months Ended March 31,
























2019

2018

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⁾
$
8,429,976


$
115,347
5.55
%

$
7,993,339


$
96,389
4.89
%
Taxable securities ⁽³⁾

2,712,995



19,649
2.90



2,722,977



17,323
2.54

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

169,702



1,570
3.70



146,531



1,309
3.57

Federal funds sold and other interest-earning assets

185,623



618
1.33



213,055



698
1.31













Total interest-earning assets (FTE)

11,498,296



137,184
4.83



11,075,902



115,719
4.23

Noninterest-earning assets:











Allowance for loan losses

(61,784
)






(59,144
)




Cash and due from banks

123,801







160,486





Premises and equipment

216,611







216,723





Other assets ⁽³⁾

731,628







717,385





Total assets
$
12,508,552






$
12,111,352

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
2,208,816



3,536
0.65


$
2,083,703



1,113
0.22

Money market

2,175,855



4,205
0.78



2,230,620



2,175
0.40

Savings

672,197



32
0.02



655,746



49
0.03

Time

1,627,584



5,336
1.33



1,535,216



2,241
0.59

Brokered time deposits

482,048



2,848
2.40



158,358



715
1.83

Total interest-bearing deposits

7,166,500

-

15,957
0.90



6,663,643

-

6,293
0.38













Federal funds purchased and other borrowings

21,549



161
3.03



78,732



300
1.55

Federal Home Loan Bank advances

223,945



1,422
2.58



511,727



2,124
1.68

Long-term debt

261,971



3,342
5.17



274,480



3,288
4.86

Total borrowed funds

507,465



4,925
3.94



864,939



5,712
2.68













Total interest-bearing liabilities

7,673,965



20,882
1.10



7,528,582



12,005
0.65

Noninterest-bearing liabilities:











Noninterest-bearing deposits

3,194,401







3,095,405





Other liabilities

162,213







150,955





Total liabilities

11,030,579







10,774,942





Shareholders' equity

1,477,973







1,336,410





Total liabilities and shareholders' equity
$
12,508,552






$
12,111,352

















Net interest revenue (FTE)


$
116,302





$
103,714


Net interest-rate spread (FTE)



3.73
%




3.58
%












Net interest margin (FTE) ⁽⁴⁾



4.10
%




3.80
%












⁽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 2019 and 2018, 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 $25.9 million in 2019 and $28.3 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. The company is one of the southeast region’s largest full-service financial institutions with $12.5 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee which operate as United Community Bank, the company’s bank subsidiary. 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 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 the company 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 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, 2018 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

Twitter