UCBI - United Community Banks Inc. Reports First Quarter Results

April, 21 2020 05:30 PM United Community Banks Inc.

GREENVILLE, S.C., April 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported first quarter financial results, with solid year-over-year loan and deposit growth. United delivered net income of $31.9 million, pre-tax pre-provision income of $62.9 million, and built its allowance for credit losses with a $22.2 million provision for credit losses given the uncertain environment. Diluted earnings per share were $0.40, a decrease of $0.15 or 27% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.41, also down 27% from last year. United’s return on assets (“ROA”) was 0.99% and its return on common equity was 7.9% for the quarter. On an operating basis, United’s ROA was 1.01% and its return on tangible common equity was 10.6%.

Chairman and CEO Lynn Harton stated, “While I am pleased to report a solid quarter in a difficult environment, I am most proud of how our employees are delivering for our customers during this public health crisis. We consider ourselves ‘Financial First Responders’ and feel privileged to take care of our customers in this time of significant stress. Among other things, we were able to help support our small business clients who have experienced financial hardship due to COVID-19 by offering loan deferrals as needed, and by participating in the Small Business Administration’s Paycheck Protection Program (“PPP”). As one of the largest Preferred SBA lenders in the Southeast, we mobilized our existing SBA team, as well as hundreds of additional United bankers to process applications as quickly as possible. As a result, our team was able to successfully process applications totaling more than $960 million and reserve funding for 6,918 small businesses as of April 16, 2020.

Harton continued, “We are focused on the safety of employees and customers, with 54% of our non-branch employees working from home, and all branches operating a drive-through only model with lobbies available by appointment. The investments we have made in our digital delivery channels are paying off with increased online account openings as well as increased web traffic, and digital and social engagement. Looking forward, based on much of what we are learning now, we have the potential to be even stronger with greater innovation and business growth opportunities.”

This quarter saw record core transaction growth with loans growing at a 6% annualized rate and total deposits up by 5% on an annualized basis. Increased purchased loan accretion drove United’s net interest margin 14 basis points higher in the quarter. Excluding purchased loan accretion, the net interest margin was down just 1 basis point. Total deposits were up $138 million over last quarter, with core transaction deposits up $238 million, or 13% annualized. This was mainly driven by demand deposit growth of $165 million.

Mr. Harton concluded, “I am also tremendously proud that for 2020, Forbes recognized United for the seventh consecutive year on its list of the 100 Best Banks in America. Additionally, this quarter United received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South, and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. These honors are remarkable and are only achieved through the dedication of our bankers to build a company where great people can build fulfilling careers through helping our customers reach their financial goals.”

First Quarter 2020 Financial Highlights:

EPS decreased by 27% as compared to last year on both a GAAP and operating basis
Return on assets of 0.99%, or 1.01% excluding merger-related and other charges
Pre-tax pre-provision return on assets of 1.95%, or 1.98%, excluding merger-related charges
Return on common equity of 7.9%
Return on tangible common equity of 10.6%, excluding merger-related and other charges
United adopted the CECL model in 1Q; the uncertain economic outlook necessitated a provision for credit losses of $22.2 million
Loan production of $919 million compared to $782 million in Q1 2019
Loan growth of 6% for the quarter on an annualized basis
Core transaction deposits were up $238 million or 13% annualized, mainly driven by demand deposit growth of $165 million during the quarter
Net interest margin of 4.07% was up 14 basis points compared to the fourth quarter, and down 3 basis points from a year ago
Mortgage rate locks of $801 million, exceeding our previous quarterly record by 58%, and compared to $312 million a year ago
Noninterest income was down $4.4 million on a linked quarter basis, as record mortgage rate locks and production were more than offset by a larger negative mortgage servicing rights mark-to-market
Efficiency ratio of 56.15%, or 55.59% excluding merger-related and other charges
Net charge-offs of $8.1 million, or 37 basis points as a percent of average loans, up 19 basis points from last quarter mainly due to a single commercial loan default totaling $6.4 million
Nonperforming assets of 0.28% of total assets, which is flat compared to December 31, 2019
Repurchased 826,482 shares at an average price of $25.14 in the quarter

Conference Call
United will hold a conference call, Wednesday, April 22, 2020, 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 1559838. 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














2020

2019

First Quarter 2020 - 2019 Change
*(in thousands, except per share data)*

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

INCOME SUMMARY












Interest revenue

$
136,547


$
136,419


$
140,615


$
139,156


$
136,516



Interest expense

17,941


19,781


21,277


21,372


20,882



Net interest revenue

118,606


116,638


119,338


117,784


115,634


3
%
Provision for credit losses

22,191


3,500


3,100


3,250


3,300



Noninterest income

25,814


30,183


29,031


24,531


20,968


23

Total revenue

122,229


143,321


145,269


139,065


133,302


(8
)
Expenses

81,538


81,424


82,924


81,813


76,084


7

Income before income tax expense

40,691


61,897


62,345


57,252


57,218


(29
)
Income tax expense

8,807


12,885


13,983


13,167


12,956


(32
)
Net income

31,884


49,012


48,362


44,085


44,262


(28
)
Merger-related and other charges

808


(74
)

2,605


4,087


739



Income tax benefit of merger-related and other charges

(182
)

17


(600
)

(940
)

(172
)


Net income - operating ⁽¹⁾

$
32,510


$
48,955


$
50,367


$
47,232


$
44,829


(27
)













Pre-tax pre-provision income ⁽⁵⁾

$
62,882


$
65,397


$
65,445


$
60,502


$
60,518


4














PERFORMANCE MEASURES












Per common share:












Diluted net income - GAAP

$
0.40


$
0.61


$
0.60


$
0.55


$
0.55


(27
)
Diluted net income - operating ⁽¹⁾

0.41


0.61


0.63


0.59


0.56


(27
)
Cash dividends declared

0.18


0.18


0.17


0.17


0.16


13

Book value

20.80


20.53


20.16


19.65


18.93


10

Tangible book value ⁽³⁾

16.52


16.28


15.90


15.38


14.93


11

Key performance ratios:












Return on common equity - GAAP ⁽²⁾⁽⁴⁾

7.85
%

12.07
%

12.16
%

11.45
%

11.85
%


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

8.01


12.06


12.67


12.27


12.00



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

10.57


15.49


16.38


15.88


15.46



Return on assets - GAAP ⁽⁴⁾

0.99


1.50


1.51


1.40


1.44



Return on assets - operating ⁽¹⁾⁽⁴⁾

1.01


1.50


1.58


1.50


1.45



Return on assets - pre-tax pre-provision ⁽⁴⁾⁽⁵⁾

1.95


2.00


2.05


1.92


1.96



Return on assets - pre-tax pre-provision, excluding merger-related and other charges ^(1)(4)(5)

1.98


2.00


2.13


2.05


1.99



Net interest margin (fully taxable equivalent) ⁽⁴⁾

4.07


3.93


4.12


4.12


4.10



Efficiency ratio - GAAP

56.15


54.87


55.64


57.28


55.32



Efficiency ratio - operating ⁽¹⁾

55.59


54.92


53.90


54.42


54.78



Equity to total assets

12.54


12.66


12.53


12.25


12.06



Tangible common equity to tangible assets ⁽³⁾

10.22


10.32


10.16


9.86


9.76
















ASSET QUALITY












Nonperforming loans

$
36,208


$
35,341


$
30,832


$
26,597


$
23,624


53

Foreclosed properties

475


476


102


75


1,127


(58
)
Total nonperforming assets ("NPAs")

36,683


35,817


30,934


26,672


24,751


48

Allowance for credit losses - loans

81,905


62,089


62,514


62,204


61,642


33

Net charge-offs

8,114


3,925


2,723


2,438


3,130


159

Allowance for credit losses to loans

0.92
%

0.70
%

0.70
%

0.70
%

0.73
%


Net charge-offs to average loans ⁽⁴⁾

0.37


0.18


0.12


0.11


0.15



NPAs to loans and foreclosed properties

0.41


0.41


0.35


0.30


0.29



NPAs to total assets

0.28


0.28


0.24


0.21


0.20
















AVERAGE BALANCES ($ in millions)












Loans

$
8,829


$
8,890


$
8,836


$
8,670


$
8,430


5

Investment securities

2,520


2,486


2,550


2,674


2,883


(13
)
Earning assets

11,798


11,832


11,568


11,534


11,498


3

Total assets

12,944


12,946


12,681


12,608


12,509


3

Deposits

10,915


10,924


10,531


10,493


10,361


5

Shareholders’ equity

1,653


1,623


1,588


1,531


1,478


12

Common shares - basic (thousands)

79,340


79,659


79,663


79,673


79,807


(1
)
Common shares - diluted (thousands)

79,446


79,669


79,667


79,678


79,813


—














AT PERIOD END ($ in millions)












Loans

$
8,935


$
8,813


$
8,903


$
8,838


$
8,493


5

Investment securities

2,540


2,559


2,515


2,620


2,720


(7
)
Total assets

13,086


12,916


12,809


12,779


12,506


5

Deposits

11,035


10,897


10,757


10,591


10,534


5

Shareholders’ equity

1,641


1,636


1,605


1,566


1,508


9

Common shares outstanding (thousands)

78,284


79,014


78,974


79,075


79,035


(1
)

⁽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. ⁽⁵⁾ Excludes income tax expense and provision for credit losses.

UNITED COMMUNITY BANKS, INC.










Non-GAAP Performance Measures Reconciliation
Selected Financial Information












2020

2019
*(in thousands, except per share data)*

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter











Expense reconciliation










Expenses (GAAP)

$
81,538


$
81,424


$
82,924


$
81,813


$
76,084

Merger-related and other charges

(808
)

74


(2,605
)

(4,087
)

(739
)
Expenses - operating

$
80,730


$
81,498


$
80,319


$
77,726


$
75,345












Net income to operating income reconciliation










Net income (GAAP)

$
31,884


$
49,012


$
48,362


$
44,085


$
44,262

Merger-related and other charges

808


(74
)

2,605


4,087


739

Income tax benefit of merger-related and other charges

(182
)

17


(600
)

(940
)

(172
)
Net income - operating

$
32,510


$
48,955


$
50,367


$
47,232


$
44,829












Net income to pre-tax pre-provision income reconciliation










Net income (GAAP)

$
31,884


$
49,012


$
48,362


$
44,085


$
44,262

Income tax expense

8,807


12,885


13,983


13,167


12,956

Provision for credit losses

22,191


3,500


3,100


3,250


3,300

Pre-tax pre-provision income

$
62,882


$
65,397


$
65,445


$
60,502


$
60,518












Diluted income per common share reconciliation










Diluted income per common share (GAAP)

$
0.40


$
0.61


$
0.60


$
0.55


$
0.55

Merger-related and other charges, net of tax

0.01


—


0.03


0.04


0.01

Diluted income per common share - operating

$
0.41


$
0.61


$
0.63


$
0.59


$
0.56












Book value per common share reconciliation










Book value per common share (GAAP)

$
20.80


$
20.53


$
20.16


$
19.65


$
18.93

Effect of goodwill and other intangibles

(4.28
)

(4.25
)

(4.26
)

(4.27
)

(4.00
)
Tangible book value per common share

$
16.52


$
16.28


$
15.90


$
15.38


$
14.93












Return on tangible common equity reconciliation










Return on common equity (GAAP)

7.85
%

12.07
%

12.16
%

11.45
%

11.85
%
Merger-related and other charges, net of tax

0.16


(0.01
)

0.51


0.82


0.15

Return on common equity - operating

8.01


12.06


12.67


12.27


12.00

Effect of goodwill and other intangibles

2.56


3.43


3.71


3.61


3.46

Return on tangible common equity - operating

10.57
%

15.49
%

16.38
%

15.88
%

15.46
%











Return on assets reconciliation










Return on assets (GAAP)

0.99
%

1.50
%

1.51
%

1.40
%

1.44
%
Merger-related and other charges, net of tax

0.02


—


0.07


0.10


0.01

Return on assets - operating

1.01
%

1.50
%

1.58
%

1.50
%

1.45
%











Return on assets to return on assets- pre-tax pre-provision reconciliation










Return on assets (GAAP)

0.99
%

1.50
%

1.51
%

1.40
%

1.44
%
Income tax expense

0.27


0.39


0.44


0.42


0.41

Provision for credit losses

0.69


0.11


0.10


0.10


0.11

Return on assets - pre-tax, pre-provision

1.95


2.00


2.05


1.92


1.96

Merger-related and other charges

0.03


—


0.08


0.13


0.03

Return on assets - pre-tax pre-provision, excluding merger-related and other charges

1.98
%

2.00
%

2.13
%

2.05
%

1.99
%











Efficiency ratio reconciliation










Efficiency ratio (GAAP)

56.15
%

54.87
%

55.64
%

57.28
%

55.32
%
Merger-related and other charges

(0.56
)

0.05


(1.74
)

(2.86
)

(0.54
)
Efficiency ratio - operating

55.59
%

54.92
%

53.90
%

54.42
%

54.78
%











Tangible common equity to tangible assets reconciliation










Equity to total assets (GAAP)

12.54
%

12.66
%

12.53
%

12.25
%

12.06
%
Effect of goodwill and other intangibles

(2.32
)

(2.34
)

(2.37
)

(2.39
)

(2.30
)
Tangible common equity to tangible assets

10.22
%

10.32
%

10.16
%

9.86
%

9.76
%

UNITED COMMUNITY BANKS, INC.












Financial Highlights












Loan Portfolio Composition at Period-End



























2020

2019

Linked Quarter Change

Year over Year Change
(in millions)
First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter


LOANS BY CATEGORY













Owner occupied commercial RE
$
1,703


$
1,720


$
1,692


$
1,658


$
1,620


$
(17
)

$
83

Income producing commercial RE
2,065


2,008


1,934


1,939


1,867


57


198

Commercial & industrial
1,310


1,221


1,271


1,299


1,284


89


26

Commercial construction
959


976


1,001


983


866


(17
)

93

Equipment financing
761


745


729


674


606


16


155

Total commercial
6,798


6,670


6,627


6,553


6,243


128


555

Residential mortgage
1,128


1,118


1,121


1,108


1,064


10


64

Home equity lines of credit
668


661


669


675


684


7


(16
)
Residential construction
216


236


229


219


200


(20
)

16

Consumer
125


128


257


283


302


(3
)

(177
)
Total loans
$
8,935


$
8,813


$
8,903


$
8,838


$
8,493


$
122


$
442















LOANS BY MARKET













North Georgia
$
958


$
967


$
1,002


$
1,002


$
970


(9
)

(12
)
Atlanta
1,820


1,762


1,740


1,745


1,524


58


296

North Carolina
1,124


1,156


1,117


1,084


1,074


(32
)

50

Coastal Georgia
604


631


611


604


603


(27
)

1

Gainesville
235


246


246


244


243


(11
)

(8
)
East Tennessee
425


421


435


446


458


4


(33
)
South Carolina
1,774


1,708


1,705


1,674


1,674


66


100

Commercial Banking Solutions
1,995


1,922


1,916


1,884


1,766


73


229

Indirect auto
—


—


131


155


181


—


(181
)
Total loans
$
8,935


$
8,813


$
8,903


$
8,838


$
8,493


$
122


$
442

UNITED COMMUNITY BANKS, INC.












Financial Highlights












Credit Quality














2020

2019






(in thousands)

First Quarter

Fourth Quarter

Third Quarter






NONACCRUAL LOANS












Owner occupied RE

$
10,405


$
10,544


$
8,430







Income producing RE

2,235


1,996


2,030







Commercial & industrial

3,169


2,545


2,625







Commercial construction

1,724


2,277


1,894







Equipment financing

2,439


3,141


1,974







Total commercial

19,972


20,503


16,953







Residential mortgage

12,458


10,567


9,475







Home equity lines of credit

3,010


3,173


3,065







Residential construction

540


939


597







Consumer

228


159


742







Total

$
36,208


$
35,341


$
30,832



2020

2019


First Quarter

Fourth Quarter

Third 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

$
(1,028
)

(0.24
)%

$
(208
)

(0.05
)%

$
(39
)

(0.01
)%
Income producing RE

270


0.05


95


0.02


431


0.09

Commercial & industrial

7,185


2.30


1,809


0.58


691


0.21

Commercial construction

(141
)

(0.06
)

(140
)

(0.06
)

(247
)

(0.10
)
Equipment financing

1,507


0.81


1,550


0.84


1,174


0.67

Total commercial

7,793


0.47


3,106


0.19


2,010


0.12

Residential mortgage

9


—


89


0.03


158


0.06

Home equity lines of credit

(83
)

(0.05
)

198


0.12


83


0.05

Residential construction

(12
)

(0.02
)

(24
)

(0.04
)

(5
)

(0.01
)
Consumer

407


1.30


556


0.90


477


0.70

Total

$
8,114


0.37


$
3,925


0.18


$
2,723


0.12














⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)

March 31, 2020

December 31, 2019
ASSETS




Cash and due from banks

$
155,008


$
125,844

Interest-bearing deposits in banks

365,494


389,362

Cash and cash equivalents

520,502


515,206

Debt securities available for sale

2,249,876


2,274,581

Debt securities held to maturity (fair value $301,595 and $287,904)

290,404


283,533

Loans held for sale at fair value

89,959


58,484

Loans and leases held for investment

8,935,424


8,812,553

Less allowance for credit losses - loans and leases

(81,905
)

(62,089
)
Loans and leases, net

8,853,519


8,750,464

Premises and equipment, net

214,744


215,976

Bank owned life insurance

200,778


202,664

Accrued interest receivable

31,570


32,660

Net deferred tax asset

30,715


34,059

Derivative financial instruments

82,668


35,007

Goodwill and other intangible assets, net

341,207


342,247

Other assets

179,924


171,135

Total assets

$
13,085,866


$
12,916,016

LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
3,624,806


$
3,477,979

NOW and interest-bearing demand

2,391,976


2,461,895

Money market

2,277,052


2,230,628

Savings

732,209


706,467

Time

1,840,767


1,859,574

Brokered

168,116


160,701

Total deposits

11,034,926


10,897,244

Long-term debt

212,849


212,664

Derivative financial instruments

27,349


15,516

Accrued expenses and other liabilities

170,130


154,900

Total liabilities

11,445,254


11,280,324

Shareholders' equity:




Common stock, $1 par value; 150,000,000 shares authorized; 78,283,544 and 79,013,729 shares issued and outstanding

78,284


79,014

Common stock issuable; 591,053 and 664,640 shares

10,534


11,491

Capital surplus

1,478,719


1,496,641

Retained earnings

54,206


40,152

Accumulated other comprehensive income

18,869


8,394

Total shareholders' equity

1,640,612


1,635,692

Total liabilities and shareholders' equity

$
13,085,866


$
12,916,016

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


Three Months Ended March 31,
(in thousands, except per share data)

2020

2019
Interest revenue:




Loans, including fees

$
118,063


$
115,259

Investment securities, including tax exempt of $1,523 and $1,169

17,394


20,818

Deposits in banks and short-term investments

1,090


439

Total interest revenue

136,547


136,516






Interest expense:




Deposits:




NOW and interest-bearing demand

2,978


3,609

Money market

4,531


4,132

Savings

35


32

Time

7,531


8,184

Deposits

15,075


15,957

Short-term borrowings

1


161

Federal Home Loan Bank advances

1


1,422

Long-term debt

2,864


3,342

Total interest expense

17,941


20,882

Net interest revenue

118,606


115,634

Provision for credit losses

22,191


3,300

Net interest revenue after provision for credit losses

96,415


112,334






Noninterest income:




Service charges and fees

8,638


8,453

Mortgage loan gains and other related fees

8,310


3,748

Brokerage fees

1,640


1,337

Gains from sales of other loans, net

1,674


1,303

Securities losses, net

—


(267
)
Other

5,552


6,394

Total noninterest income

25,814


20,968

Total revenue

122,229


133,302






Noninterest expenses:




Salaries and employee benefits

51,358


47,503

Communications and equipment

5,946


5,788

Occupancy

5,714


5,584

Advertising and public relations

1,274


1,286

Postage, printing and supplies

1,670


1,586

Professional fees

4,097


3,161

Lending and loan servicing expense

2,293


2,334

Outside services - electronic banking

1,832


1,609

FDIC assessments and other regulatory charges

1,484


1,710

Amortization of intangibles

1,040


1,293

Merger-related and other charges

808


546

Other

4,022


3,684

Total noninterest expenses

81,538


76,084

Net income before income taxes

40,691


57,218

Income tax expense

8,807


12,956

Net income

$
31,884


$
44,262






Net income available to common shareholders

$
31,641


$
43,947






Net income per common share:




Basic

$
0.40


$
0.55

Diluted

0.40


0.55

Weighted average common shares outstanding:




Basic

79,340


79,807

Diluted

79,446


79,813

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended March 31,



2020

2019
*(dollars in thousands, fully taxable equivalent (FTE))*

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate
Assets:












Interest-earning assets:












Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾

$
8,828,880


$
117,796


5.37
%

$
8,429,976


$
115,347


5.55
%
Taxable securities⁽³⁾

2,357,635


15,871


2.69


2,712,995


19,649


2.90

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

162,253


2,045


5.04


169,702


1,570


3.70

Federal funds sold and other interest-earning assets

448,775


1,632


1.46


185,623


618


1.33

Total interest-earning assets (FTE)

11,797,543


137,344


4.68


11,498,296


137,184


4.83














Noninterest-earning assets:












Allowance for credit losses

(69,777
)





(61,784
)




Cash and due from banks

128,254






123,801





Premises and equipment

219,243






216,611





Other assets ⁽³⁾

868,452






731,628





Total assets

$
12,943,715






$
12,508,552


















Liabilities and Shareholders' Equity:












Interest-bearing liabilities:












Interest-bearing deposits:












NOW and interest-bearing demand

$
2,412,733


2,978


0.50


$
2,286,619


3,609


0.64

Money market

2,340,723


4,531


0.78


2,098,052


4,132


0.80

Savings

712,110


35


0.02


672,197


32


0.02

Time

1,841,552


7,250


1.58


1,627,584


5,336


1.33

Brokered time deposits

80,821


281


1.40


482,048


2,848


2.40

Total interest-bearing deposits

7,387,939


15,075


0.82


7,166,500


15,957


0.90

Federal funds purchased and other borrowings

396


1


1.02


21,549


161


3.03

Federal Home Loan Bank advances

165


1


2.44


223,945


1,422


2.58

Long-term debt

212,762


2,864


5.41


261,971


3,342


5.17

Total borrowed funds

213,323


2,866


5.40


507,465


4,925


3.94

Total interest-bearing liabilities

7,601,262


17,941


0.95


7,673,965


20,882


1.10














Noninterest-bearing liabilities:












Noninterest-bearing deposits

3,527,385






3,194,401





Other liabilities

162,187






162,213





Total liabilities

11,290,834






11,030,579





Shareholders' equity

1,652,881






1,477,973





Total liabilities and shareholders' equity

$
12,943,715






$
12,508,552


















Net interest revenue (FTE)



$
119,403






$
116,302



Net interest-rate spread (FTE)





3.73
%





3.73
%
Net interest margin (FTE) ⁽⁴⁾





4.07
%





4.10
%

⁽¹⁾Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
⁽²⁾Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
⁽³⁾Securities available for sale are shown at amortized cost. Pretax unrealized gains of $52.9 million in 2020 and unrealized losses of $25.9 million in 2019 are included in other assets for purposes of this presentation.
⁽⁴⁾Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $13.1 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, Forbes magazine included United in its inaugural list of the World’s Best Banks, and in 2020, recognized United for the seventh consecutive year on its list of the 100 Best Banks in America. United Community Bank also received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. Additional information about UCBI and the Bank can be found at www.ucbi.com.

Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “pre-tax pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax pre-provision, excluding merger-related and other charges,” “return on assets – pre-tax pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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

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

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