UCBI - United Community Banks Inc. Reports Second Quarter Results

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

GREENVILLE, S.C., July 23, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its second quarter financial results, including solid year-over-year loan and deposit growth, improved operating efficiency and strong asset quality. Diluted earnings per share were $0.55, an increase of $0.06 or 12% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.59, up 11% over last year. United’s return on assets (“ROA”) was 1.40% and its return on common equity was 11.5% for the quarter. On an operating basis, United’s ROA was 1.50% and its return on tangible common equity was 15.9%.

In the second quarter, loans grew at a 7% annualized rate, or at 9% annualized excluding the planned runoff of the discontinued indirect auto portfolio. With this loan growth and continued balance sheet remixing opportunities, United also benefitted from net interest margin expansion during the quarter. Core transaction deposits grew by $167 million, or 9% annualized, and total customer deposits increased by $129 million during the quarter. All loan and deposit growth results noted above exclude the acquisition of First Madison Bank & Trust, which closed on May 1. Finally, United’s combination of revenue growth and expense management resulted in a 57.28% efficiency ratio, or 54.42% on an operating basis, which represented a new Company best.

“Our United bankers continue to execute on our plans and deliver outstanding results,” said Lynn Harton, Chairman and CEO of United. “I couldn’t be more proud of what they are doing to deliver both world class customer service and top quartile financial performance. I am also pleased that First Madison Bank & Trust in Athens, Georgia is now officially part of the United team. We look forward to growing our business together in the attractive Athens, Georgia market.”

Second Quarter 2019 Financial Highlights:

EPS growth of 12% versus last year, or 11% on an operating basis
Return on assets of 1.40%, or 1.50%, excluding merger-related and other charges
Return on common equity of 11.5%
Return on tangible common equity of 15.9%, excluding merger-related and other charges
Loan growth, excluding planned runoff of the indirect portfolio and the acquisition of First Madison Bank & Trust, of 9% on an annualized basis
Loan growth of $153 million which was more than funded by core transaction deposit growth of $167 million
Expansion of the net interest margin to 4.12%, up 2 basis points from the first quarter of 2019 and up 22 basis points from a year ago
Efficiency ratio of 57.3%, or 54.4%, excluding merger-related and other charges
Net charge-offs of 11 basis points, improved four basis points from last quarter and at historically low levels.
Nonperforming assets of 0.21% of total assets, compared with 0.20% at March 31, 2019 and 0.20% at June 30, 2018

Conference Call
United will hold a conference call, Wednesday, July 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 8388603. 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








































































Second

For the Six





2019



2018


Quarter

Months Ended

YTD



Second


First


Fourth


Third


Second


2019-2018

June 30,

2019-2018

(in thousands, except per share data)

Quarter


Quarter


Quarter


Quarter


Quarter


Change

2019



2018


Change

INCOME SUMMARY



























Interest revenue
$
139,156


$
136,516


$
133,854


$
128,721


$
122,215





$
275,672


$
237,505





Interest expense

21,372



20,882



18,975



16,611



13,739






42,254



25,744





Net interest revenue

117,784



115,634



114,879



112,110



108,476



9

%

233,418



211,761


10

%

Provision for credit losses

3,250



3,300



2,100



1,800



1,800



81



6,550



5,600


17



Noninterest income

24,531



20,968



23,045



24,180



23,340



5



45,499



45,736


(1
)


Total revenue

139,065



133,302



135,824



134,490



130,016



7



272,367



251,897


8



Expenses

81,813



76,084



78,242



77,718



76,850



6



157,897



150,325


5



Income before income tax expense

57,252



57,218



57,582



56,772



53,166



8



114,470



101,572


13



Income tax expense

13,167



12,956



12,445



13,090



13,532



(3
)


26,123



24,280


8



Net income

44,085



44,262



45,137



43,682



39,634



11



88,347



77,292


14



Merger-related and other charges

4,087



739



1,234



592



2,873






4,826



5,519





Income tax benefit of merger-related and other charges

(940
)


(172
)


(604
)


(141
)


(121
)





(1,112
)


(749
)




Net income - operating ⁽¹⁾
$
47,232


$
44,829


$
45,767


$
44,133


$
42,386



11


$
92,061


$
82,062


12































PERFORMANCE MEASURES



























Per common share:



























Diluted net income - GAAP
$
0.55


$
0.55


$
0.56


$
0.54


$
0.49



12


$
1.10


$
0.97


13



Diluted net income - operating ⁽¹⁾

0.59



0.56



0.57



0.55



0.53



11



1.15



1.03


12



Cash dividends declared

0.17



0.16



0.16



0.15



0.15



13



0.33



0.27


22



Book value

19.65



18.93



18.24



17.56



17.29



14



19.65



17.29


14



Tangible book value⁽³⁾

15.38



14.93



14.24



13.54



13.25



16



15.38



13.25


16































Key performance ratios:



























Return on common equity - GAAP⁽²⁾⁽⁴⁾

11.45

%

11.85

%

12.08

%
11.96

%

11.20

%




11.65

%

11.15

%




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

12.27



12.00



12.25



12.09



11.97






12.14



11.84





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

15.88



15.46



15.88



15.81



15.79






15.67



15.53





Return on assets - GAAP⁽⁴⁾

1.40



1.44



1.43



1.41



1.30






1.42



1.28





Return on assets - operating⁽¹⁾⁽⁴⁾

1.50



1.45



1.45



1.42



1.39






1.48



1.36





Dividend payout ratio - GAAP

30.91



29.09



28.57



27.78



30.61






30.00



27.84





Dividend payout ratio - operating ⁽¹⁾

28.81



28.57



28.07



27.27



28.30






28.70



26.21





Net interest margin (fully taxable equivalent)⁽⁴⁾

4.12



4.10



3.97



3.95



3.90






4.11



3.85





Efficiency ratio - GAAP

57.28



55.32



56.73



56.82



57.94






56.32



57.89





Efficiency ratio - operating ⁽¹⁾

54.42



54.78



55.83



56.39



55.77






54.60



55.76





Average equity to average assets

12.14



11.82



11.35



11.33



11.21






11.98



11.13





Average tangible common equity to average assets⁽³⁾

9.79



9.53



9.04



8.97



8.83






9.66



8.82





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

12.36



12.48



12.00



11.61



11.36






12.36



11.36

























-








ASSET QUALITY



























Nonperforming loans
$
26,597


$
23,624


$
23,778


$
22,530


$
21,817



22


$
26,597


$
21,817


22



Foreclosed properties

75



1,127



1,305



1,336



2,597



(97
)


75



2,597


(97
)


Total nonperforming assets (NPAs)

26,672



24,751



25,083



23,866



24,414



9



26,672



24,414


9



Allowance for loan losses

62,204



61,642



61,203



60,940



61,071



2



62,204



61,071


2



Net charge-offs

2,438



3,130



1,787



1,466



1,359



79



5,568



2,860


95



Allowance for loan losses to loans

0.70

%

0.73

%

0.73

%

0.74

%

0.74

%




0.70

%

0.74

%




Net charge-offs to average loans⁽⁴⁾

0.11



0.15



0.09



0.07



0.07






0.13



0.07





NPAs to loans and foreclosed properties

0.30



0.29



0.30



0.29



0.30






0.30



0.30





NPAs to total assets

0.21



0.20



0.20



0.19



0.20






0.21



0.20

































AVERAGE BALANCES ($ in millions)



























Loans
$
8,670


$
8,430


$
8,306


$
8,200


$
8,177



6


$
8,551


$
8,086


6



Investment securities

2,674



2,883



3,004



2,916



2,802



(5
)


2,778



2,836


(2
)


Earning assets

11,534



11,498



11,534



11,320



11,193



3



11,516



11,135


3



Total assets

12,608



12,509



12,505



12,302



12,213



3



12,559



12,163


3



Deposits

10,493



10,361



10,306



9,950



9,978



5



10,427



9,869


6



Shareholders’ equity

1,531



1,478



1,420



1,394



1,370



12



1,505



1,353


11



Common shares - basic (thousands)

79,673



79,807



79,884



79,806



79,753



-



79,739



79,477


-



Common shares - diluted (thousands)

79,678



79,813



79,890



79,818



79,755



-



79,745



79,487


-































AT PERIOD END ($ in millions)



























Loans
$
8,838


$
8,493


$
8,383


$
8,226


$
8,220



8


$
8,838


$
8,220


8



Investment securities

2,620



2,720



2,903



2,873



2,834



(8
)


2,620



2,834


(8
)


Total assets

12,779



12,506



12,573



12,405



12,386



3



12,779



12,386


3



Deposits

10,591



10,534



10,535



10,229



9,966



6



10,591



9,966


6



Shareholders’ equity

1,566



1,508



1,458



1,402



1,379



14



1,566



1,379


14



Common shares outstanding (thousands)

79,075



79,035



79,234



79,202



79,138



-



79,075



79,138


-































⁽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⁾ Second quarter 2019 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.













Non-GAAP Performance Measures Reconciliation











Selected Financial Information














































2019



2018


For the Six Months Ended


Second

First

Fourth

Third

Second

June 30,

(in thousands, except per share data)
Quarter

Quarter

Quarter

Quarter

Quarter


2019



2018

















Expense reconciliation














Expenses (GAAP)
$
81,813


$
76,084


$
78,242


$
77,718


$
76,850


$
157,897


$
150,325


Merger-related and other charges

(4,087
)


(739
)


(1,234
)


(592
)


(2,873
)


(4,826
)


(5,519
)

Expenses - operating
$
77,726


$
75,345


$
77,008


$
77,126


$
73,977


$
153,071


$
144,806

















Net income reconciliation














Net income (GAAP)
$
44,085


$
44,262


$
45,137


$
43,682


$
39,634


$
88,347


$
77,292


Merger-related and other charges

4,087



739



1,234



592



2,873



4,826



5,519


Income tax benefit of merger-related and other charges

(940
)


(172
)


(604
)


(141
)


(121
)


(1,112
)


(749
)

Net income - operating
$
47,232


$
44,829


$
45,767


$
44,133


$
42,386


$
92,061


$
82,062



















Diluted income per common share reconciliation
















Diluted income per common share (GAAP)
$
0.55


$
0.55


$
0.56


$
0.54


$
0.49


$
1.10


$
0.97


Merger-related and other charges

0.04



0.01



0.01



0.01



0.04



0.05



0.06


Diluted income per common share - operating
$
0.59


$
0.56


$
0.57


$
0.55


$
0.53


$
1.15


$
1.03

















Book value per common share reconciliation














Book value per common share (GAAP)
$
19.65


$
18.93


$
18.24


$
17.56


$
17.29


$
19.65


$
17.29


Effect of goodwill and other intangibles

(4.27
)


(4.00
)


(4.00
)


(4.02
)


(4.04
)


(4.27
)


(4.04
)

Tangible book value per common share
$
15.38


$
14.93


$
14.24


$
13.54


$
13.25


$
15.38


$
13.25

















Return on tangible common equity reconciliation













Return on common equity (GAAP)

11.45

%

11.85

%

12.08

%

11.96

%

11.20

%

11.65

%

11.15

%
Merger-related and other charges

0.82



0.15



0.17



0.13



0.77



0.49



0.69


Return on common equity - operating

12.27



12.00



12.25



12.09



11.97



12.14



11.84


Effect of goodwill and other intangibles

3.61



3.46



3.63



3.72



3.82



3.53



3.69


Return on tangible common equity - operating

15.88

%

15.46

%

15.88

%

15.81

%

15.79

%

15.67

%

15.53

%















Return on assets reconciliation














Return on assets (GAAP)

1.40

%

1.44

%

1.43

%

1.41

%

1.30

%

1.42

%

1.28

%
Merger-related and other charges

0.10



0.01



0.02



0.01



0.09



0.06



0.08


Return on assets - operating

1.50

%

1.45

%

1.45

%

1.42

%

1.39

%

1.48

%

1.36

%















Dividend payout ratio reconciliation














Dividend payout ratio (GAAP)

30.91

%

29.09

%

28.57

%

27.78

%

30.61

%

30.00

%

27.84

%
Merger-related and other charges

(2.10
)


(0.52
)


(0.50
)


(0.51
)


(2.31
)


(1.30
)


(1.63
)

Dividend payout ratio - operating

28.81

%

28.57

%

28.07

%

27.27

%

28.30

%

28.70

%

26.21

%















Efficiency ratio reconciliation














Efficiency ratio (GAAP)

57.28

%

55.32

%

56.73

%

56.82

%

57.94

%

56.32

%

57.89

%
Merger-related and other charges

(2.86
)


(0.54
)


(0.90
)


(0.43
)


(2.17
)


(1.72
)


(2.13
)

Efficiency ratio - operating

54.42

%

54.78

%

55.83

%

56.39

%

55.77

%

54.60

%

55.76

%















Average equity to average assets reconciliation














Average equity to assets (GAAP)

12.14

%

11.82

%

11.35

%

11.33

%

11.21

%

11.98

%

11.13

%
Effect of goodwill and other intangibles

(2.35
)


(2.29
)


(2.31
)


(2.36
)


(2.38
)


(2.32
)


(2.31
)

Average tangible common equity to average assets

9.79

%

9.53

%

9.04

%

8.97

%

8.83

%

9.66

%

8.82

%















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











Tier 1 capital ratio (Regulatory)

12.36

%

12.69

%

12.42

%

12.25

%

11.94

%

12.36

%

11.94

%
Effect of other comprehensive income

0.07



(0.17
)


(0.44
)


(0.68
)


(0.57
)


0.07



(0.57
)

Effect of deferred tax limitation

0.18



0.22



0.28



0.30



0.33



0.18



0.33


Effect of trust preferred

(0.25
)


(0.26
)


(0.26
)


(0.26
)


(0.34
)


(0.25
)


(0.34
)

Tangible common equity to risk-weighted assets

12.36

%

12.48

%

12.00

%

11.61

%

11.36

%

12.36

%

11.36

%















⁽¹⁾ Second quarter 2019 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.










Financial Highlights













Loan Portfolio Composition at Period-End





































Year


2019


2018
Linked

over

Second

First

Fourth

Third

Second

Quarter

Year
(in millions)
Quarter

Quarter

Quarter

Quarter

Quarter

Change

Change
LOANS BY CATEGORY













Owner occupied commercial RE
$
1,658

$
1,620

$
1,648

$
1,673

$
1,682

$
38


$
(24
)
Income producing commercial RE

1,939


1,867


1,812


1,788


1,821


72



118

Commercial & industrial

1,299


1,284


1,278


1,194


1,193


15



106

Commercial construction

983


866


796


761


735


117



248

Equipment financing

674


606


565


509


465


68



209

Total commercial

6,553


6,243


6,099


5,925


5,896


310



657

Residential mortgage

1,108


1,064


1,049


1,035


1,021


44



87

Home equity lines of credit

675


684


694


702


708


(9
)


(33
)
Residential construction

219


200


211


198


195


19



24

Consumer

283


302


330


366


400


(19
)


(117
)
Total loans
$
8,838

$
8,493

$
8,383

$
8,226

$
8,220


345



618

UNITED COMMUNITY BANKS, INC.










Financial Highlights













Credit Quality









































(in thousands)

Second Quarter 2019

First Quarter 2019

Fourth Quarter 2018



















NONACCRUAL LOANS BY CATEGORY











Owner occupied CRE

$
8,177


$
7,030


$
6,421








Income producing CRE


1,331



1,276



1,160








Commercial & industrial


2,366



1,666



1,417








Commercial construction


1,650



473



605








Equipment financing


2,047



1,813



2,677








Total commercial


15,571



12,258



12,280








Residential mortgage


8,012



8,281



8,035








Home equity lines of credit


1,978



2,233



2,360








Residential construction


494



347



288








Consumer


542



505



815








Total NPAs

$
26,597


$
23,624


$
23,778






















NONACCRUAL LOANS ACTIVITY











Beginning Balance

$
23,624


$
23,778


$
22,530








Loans placed on non-accrual


8,316



6,759



5,829








Payments received


(3,212
)


(3,520
)


(2,780
)







Loan charge-offs


(2,131
)


(2,714
)


(933
)







Foreclosures


-



(679
)


(868
)







Ending Balance

$
26,597


$
23,624


$
23,778
























Second Quarter 2019

First Quarter 2019

Fourth 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

$
(58
)


(0.01
)
%
$
(64
)

(0.02
)
%
$
(52
)

(0.01
)
%
Income producing CRE


241



0.05



177


0.04



399


0.09


Commercial & industrial


1,141



0.35



1,356


0.43



(149
)

(0.05
)

Commercial construction


(162
)


(0.07
)


(325
)

(0.16
)


(230
)

(0.12
)

Equipment financing


890



0.56



1,281


0.89



599


0.44


Total commercial


2,052



0.13



2,425


0.16



567


0.04


Residential mortgage


(125
)


(0.05
)


13


-



290


0.11


Home equity lines of credit


(111
)


(0.07
)


215


0.13



382


0.22


Residential construction


199



0.38



(22
)

(0.04
)


(36
)

(0.07
)

Consumer


423



0.58



499


0.64



584


0.67


Total

$
2,438



0.11


$
3,130


0.15


$
1,787


0.09
















⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.








Consolidated Statements of Income (Unaudited)



















Three Months Ended

Six Months Ended


June 30,

June 30,
(in thousands, except per share data)


2019


2018



2019



2018










Interest revenue:








Loans, including fees

$
119,671

$
103,492


$
234,930


$
199,961

Investment securities, including tax exempt of $1,122, $1,025, $2,291 and $1,997


19,076


18,254



39,894



36,549

Deposits in banks and short-term investments


409


469



848



995

Total interest revenue


139,156


122,215



275,672



237,505










Interest expense:








Deposits:








NOW and interest-bearing demand


3,377


1,303



6,913



2,416

Money market


4,925


2,583



9,130



4,758

Savings


42


35



74



84

Time


8,771


4,198



16,955



7,154

Total deposit interest expense


17,115


8,119



33,072



14,412

Short-term borrowings


248


198



409



498

Federal Home Loan Bank advances


752


1,636



2,174



3,760

Long-term debt


3,257


3,786



6,599



7,074

Total interest expense


21,372


13,739



42,254



25,744

Net interest revenue


117,784


108,476



233,418



211,761

Provision for credit losses


3,250


1,800



6,550



5,600

Net interest revenue after provision for credit losses


114,534


106,676



226,868



206,161










Noninterest income:








Service charges and fees


9,060


8,794



17,513



17,719

Mortgage loan and other related fees


5,344


5,307



9,092



10,666

Brokerage fees


1,588


1,201



2,925



2,073

Gains from sales of SBA/USDA loans


1,470


2,401



2,773



4,179

Securities gains (losses), net


149


(364
)


(118
)


(1,304
)
Other


6,920


6,001



13,314



12,403

Total noninterest income


24,531


23,340



45,499



45,736

Total revenue


139,065


130,016



272,367



251,897










Noninterest expenses:








Salaries and employee benefits


48,157


45,363



95,660



88,238

Communications and equipment


6,222


4,849



12,010



9,481

Occupancy


5,919


5,547



11,503



11,160

Advertising and public relations


1,596


1,384



2,882



2,899

Postage, printing and supplies


1,529


1,685



3,115



3,322

Professional fees


4,054


3,464



7,215



7,508

FDIC assessments and other regulatory charges


1,547


1,973



3,257



4,449

Amortization of intangibles


1,342


1,847



2,635



3,745

Merger-related and other charges


3,894


2,280



4,440



4,334

Other


7,553


8,458



15,180



15,189

Total noninterest expenses


81,813


76,850



157,897



150,325

Net income before income taxes


57,252


53,166



114,470



101,572

Income tax expense


13,167


13,532



26,123



24,280

Net income

$
44,085

$
39,634


$
88,347


$
77,292










Net income available to common shareholders

$
43,769

$
39,359


$
87,716


$
76,740










Earnings per common share:








Basic

$
0.55

$
0.49



1.10


$
0.97

Diluted


0.55


0.49



1.10



0.97

Weighted average common shares outstanding:








Basic


79,673


79,745



79,739



79,477

Diluted


79,678


79,755



79,745



79,487

UNITED COMMUNITY BANKS, INC.




Consolidated Balance Sheets (Unaudited)











June 30,

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


2019



2018






ASSETS




Cash and due from banks

$
118,361


$
126,083

Interest-bearing deposits in banks


157,418



201,182

Cash and cash equivalents


275,779



327,265

Debt securities available for sale


2,366,502



2,628,467

Debt securities held to maturity (fair value $256,975 and $268,803)


253,398



274,407

Loans held for sale at fair value


46,285



18,935

Loans and leases, net of unearned income


8,838,218



8,383,401

Less allowance for loan and lease losses


(62,204
)


(61,203
)
Loans, net


8,776,014



8,322,198

Premises and equipment, net


217,086



206,140

Bank owned life insurance


200,993



192,616

Accrued interest receivable


35,439



35,413

Net deferred tax asset


40,870



64,224

Derivative financial instruments


35,209



24,705

Goodwill and other intangible assets


344,550



324,072

Other assets


187,313



154,750

Total assets

$
12,779,438


$
12,573,192

LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
3,461,584


$
3,210,220

NOW and interest-bearing demand


2,059,694



2,274,775

Money market


2,281,818



2,097,526

Savings


693,961



669,886

Time


1,840,271



1,598,391

Brokered


253,942



683,715

Total deposits


10,591,270



10,534,513

Short-term borrowings


40,000



-

Federal Home Loan Bank advances


160,000



160,000

Long-term debt


247,952



267,189

Derivative financial instruments


16,769



26,433

Accrued expenses and other liabilities


157,113



127,503

Total liabilities


11,213,104



11,115,638

Shareholders' equity:




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




79,075,219 and 79,234,077 shares issued and outstanding


79,075



79,234

Common stock issuable; 641,725 and 674,499 shares


10,858



10,744

Capital surplus


1,498,740



1,499,584

Accumulated deficit


(29,116
)


(90,419
)
Accumulated other comprehensive income (loss)


6,777



(41,589
)
Total shareholders' equity


1,566,334



1,457,554

Total liabilities and shareholders' equity

$
12,779,438


$
12,573,192

UNITED COMMUNITY BANKS, INC.











Average Consolidated Balance Sheets and Net Interest Analysis








For the Three Months Ended June 30,
























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⁾
$
8,669,847


$
119,668
5.54
%

$
8,177,343


$
103,395
5.07
%
Taxable securities ⁽³⁾

2,506,942



17,954
2.86



2,651,816



17,229
2.60

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

166,628



1,507
3.62



150,503



1,380
3.67

Federal funds sold and other interest-earning assets

190,678



679
1.42



212,849



674
1.27













Total interest-earning assets (FTE)

11,534,095



139,808
4.86



11,192,511



122,678
4.39

Noninterest-earning assets:











Allowance for loan losses

(62,716
)






(62,275
)




Cash and due from banks

125,021







133,060





Premises and equipment

224,018







218,517





Other assets ⁽³⁾

787,859







731,514





Total assets
$
12,608,277






$
12,213,327

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
2,107,041



3,377
0.64


$
2,071,289



1,303
0.25

Money market

2,269,321



4,925
0.87



2,214,077



2,583
0.47

Savings

687,753



42
0.02



678,988



35
0.02

Time

1,773,968



6,949
1.57



1,524,124



2,696
0.71

Brokered time deposits

298,553



1,822
2.45



300,389



1,502
2.01

Total interest-bearing deposits

7,136,636

-

17,115
0.96



6,788,867

-

8,119
0.48













Federal funds purchased and other borrowings

38,838



248
2.56



45,241



198
1.76

Federal Home Loan Bank advances

117,912



752
2.56



335,521



1,636
1.96

Long-term debt

252,351



3,257
5.18



316,812



3,786
4.79

Total borrowed funds

409,101



4,257
4.17



697,574



5,620
3.23













Total interest-bearing liabilities

7,545,737



21,372
1.14



7,486,441



13,739
0.74

Noninterest-bearing liabilities:











Noninterest-bearing deposits

3,355,930







3,188,847





Other liabilities

175,806







168,417





Total liabilities

11,077,473







10,843,705





Shareholders' equity

1,530,804







1,369,622





Total liabilities and shareholders' equity
$
12,608,277






$
12,213,327

















Net interest revenue (FTE)


$
118,436





$
108,939


Net interest-rate spread (FTE)



3.72
%




3.65
%












Net interest margin (FTE) ⁽⁴⁾



4.12
%




3.90
%












⁽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 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 gains of $5.00 million in 2019 and pretax unrealized losses of $42.9 million in

2018 are included in other assets for purposes of this presentation.

⁽⁴⁾ Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

UNITED COMMUNITY BANKS, INC.











Average Consolidated Balance Sheets and Net Interest Analysis








For the Six Months Ended June 30,



























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⁾
$
8,550,574


$
235,015
5.54
%

$
8,085,849


$
199,784
4.98
%
Taxable securities ⁽³⁾

2,609,400



37,603
2.88



2,687,200



34,552
2.57

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

168,156



3,077
3.66



148,528



2,689
3.62

Federal funds sold and other interest-earning assets

188,165



1,297
1.38



212,951



1,372
1.29













Total interest-earning assets (FTE)

11,516,295



276,992
4.84



11,134,528



238,397
4.31

Noninterest-earning assets:











Allowance for loan losses

(62,253
)






(60,718
)




Cash and due from banks

124,414







146,697





Premises and equipment

220,335







217,625





Other assets ⁽³⁾

759,899







724,488





Total assets
$
12,558,690






$
12,162,620

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
2,157,648



6,913
0.65


$
2,077,461



2,416
0.23

Money market

2,222,846



9,130
0.83



2,222,304



4,758
0.43

Savings

680,018



74
0.02



667,431



84
0.03

Time

1,701,181



12,285
1.46



1,529,639



4,937
0.65

Brokered time deposits

389,794



4,670
2.42



229,766



2,217
1.95

Total interest-bearing deposits

7,151,487



33,072
0.93



6,726,601



14,412
0.43













Federal funds purchased and other borrowings

30,241



409
2.73



61,894



498
1.62

Federal Home Loan Bank advances

170,636



2,174
2.57



423,137



3,760
1.79

Long-term debt

257,134



6,599
5.18



295,763



7,074
4.82

Total borrowed funds

458,011



9,182
4.04



780,794



11,332
2.93













Total interest-bearing liabilities

7,609,498



42,254
1.12



7,507,395



25,744
0.69

Noninterest-bearing liabilities:











Noninterest-bearing deposits

3,275,612







3,142,384





Other liabilities

169,048







159,734





Total liabilities

11,054,158







10,809,513





Shareholders' equity

1,504,532







1,353,107





Total liabilities and shareholders' equity
$
12,558,690






$
12,162,620

















Net interest revenue (FTE)


$
234,738





$
212,653


Net interest-rate spread (FTE)



3.72
%




3.62
%












Net interest margin (FTE) ⁽⁴⁾



4.11
%




3.85
%












⁽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 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 $10.4 million in 2019 and pretax unrealized losses of $35.6 million in

2018 are included in other assets for purposes of this presentation.

⁽⁴⁾ Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $12.8 billion in assets, and 147 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. Additional information about UCBI and the Bank can be found at www.ucbi.com.

Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating 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.

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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