Twitter

Link your Twitter Account to Market Wire News


When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.


Be alerted of any news about your stocks and see what other stocks are trending.

home / news releases / UCBI - United Community Banks Inc. Reports Third Quarter Results

UCBI - United Community Banks Inc. Reports Third Quarter Results

United Community Banks Inc.

GREENVILLE, S.C., Oct. 20, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported third quarter financial results, including solid year-over-year loan and deposit growth and record operating efficiency. United delivered net income of $47.6 million and pre-tax pre-provision income of $81.2 million. Diluted earnings per share of $0.52 for the quarter represented a decrease of $0.08 or 13%, from a year ago. This decline is largely due to an increase in credit loss provisioning associated with loan growth and the acquisition of Seaside National Bank & Trust (Seaside) along with net interest margin declines largely driven by declines in market interest rates. Compared to the second quarter, diluted earnings per share were up by $0.20 or 63%. Excluding merger-related and other charges, diluted operating earnings per share were $0.55, also down 13% from last year, but up $0.23 per share or 72% compared to second quarter. United’s GAAP return on assets (ROA) was 1.07% and its return on common equity was 10.1% for the quarter. On an operating basis, United’s ROA was 1.14% and its return on tangible common equity was 13.5%. On a pre-tax, pre-provision basis, and excluding merger-related and other charges, ROA was 1.93%.

Chairman and CEO Lynn Harton stated, “While the future economic and operating environment remains uncertain, I am pleased with the financial strength and resilience of the company and the dedication of our employees who consistently provide outstanding customer service. Our markets continue to recover from the economic effects of the pandemic and I am pleased to report that loan payment deferrals have declined from a peak of $1.9 billion, or 15.9% of the total loan portfolio at June 30, 2020 to $365 million, or 3.1% of the total loan portfolio at September 30, 2020.”

Harton continued, “Our acquisition of Seaside, which closed on July 1st, positions us well in attractive Florida markets and we are pleased with the talent of the Seaside team and the deep relationships they have built with their clients. We plan to pilot Seaside’s high net worth offering of asset management and trust services in select markets of United’s footprint in the late fourth quarter. Additionally, we have made solid progress on the business integration and are already moving forward with additional products, including mortgage, middle market, commercial real estate, SBA, asset-based and non-profit lending, to compliment Seaside’s product offerings. We are proud to welcome Seaside to the United team.”

Total loans increased by $1.7 billion during the quarter—primarily driven by the acquisition of Seaside. Excluding the effects of the acquisition, core organic loan growth was 8% annualized. Core transaction deposits grew by $1.7 billion during the quarter, with $1.3 billion resulting from the Seaside acquisition, supplemented by approximately $400 million in organic growth. United’s cost of deposits decreased by 13 basis points to 0.25%. The net interest margin decreased 15 basis points from the second quarter due to a combination of factors, including lower overall market rates.

Mr. Harton concluded, “We are focused on our long-term goal of remaining a top performer in our peer group. While this is a difficult environment in which to forecast future economic conditions, we are encouraged by increasing business activity in our markets and stable credit performance in our portfolio to date. Our strong balance sheet position gives us the ability to continue to support our customers and communities, and we believe we will be well positioned to be able to take advantage of expansion opportunities in the future.”

Thir d Quarter 2020 Financial Highlights:

  • EPS decreased by 13% compared to last year on both a GAAP and operating basis; compared to second quarter, EPS increased by 63% on a GAAP basis and 72% on an operating basis
  • Return on assets of 1.07%, or 1.14% excluding merger-related and other charges
  • Pre-tax, pre-provision return on assets of 1.86%, or 1.93% excluding merger-related and other charges
  • Return on common equity of 10.1%
  • Return on tangible common equity of 13.5%, excluding merger-related and other charges
  • A provision for credit losses of $21.8 million of which $10.7 million is attributable to establishing an allowance for credit losses for Seaside’s acquired loans
  • Loan production of $1.0 billion and loan growth of $1.7 billion with $1.4 billion attributable to loans acquired from Seaside and core loan growth at an annualized rate of 8% for the quarter
  • Core transaction deposits were up $1.7 billion with $1.3 billion attributable to Seaside and approximately $400 million in organic growth, which represents a 15% annualized growth rate for the quarter
  • Net interest margin of 3.27% was down 15 basis points from the second quarter, reflecting the low rate environment, the Seaside acquisition, and increasing balance sheet liquidity
  • Record mortgage rate locks of $910 million, which is $108 million or 13% higher than the previous record set in the second quarter; this compares to $508 million a year ago
  • Noninterest income was up $7.7 million on a linked quarter basis, excluding net securities gains; Seaside contributed nearly $2.5 million of the increase and mortgage loan and related fees were up $1.5 million, primarily driven by record mortgage rate locks and production
  • Efficiency ratio of 54.1%, or a record low 52.2% excluding merger-related and other charges
  • Net charge-offs of $2.5 million, or 9 basis points as a percent of average loans, down 16 basis points from in the second quarter
  • Nonperforming assets of 0.29% of total assets, which is down 3 basis points compared to June 30, 2020
  • Total deferrals of $365 million or 3% of the total loan portfolio compared to $1.9 billion or 16% in the second quarter
  • $500,000 of funding for the United Community Bank Foundation, adding to the initial $1 million contribution in the second quarter for charities and causes throughout the footprint

Conference Call

United will hold a conference call, Wednesday, October 21, 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 7466997. 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
Third
Quarter
For the Nine Months Ended September 30,
(in thousands, except per share data)
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
2020 -
2019
Change
2020
2019
YTD
2020 -
2019
Change
INCOME SUMMARY
Interest revenue
$
141,773
$
123,605
$
136,547
$
136,419
$
140,615
$
401,925
$
416,287
Interest expense
13,319
14,301
17,941
19,781
21,277
45,561
63,531
Net interest revenue
128,454
109,304
118,606
116,638
119,338
8
%
356,364
352,756
1
%
Provision for credit losses
21,793
33,543
22,191
3,500
3,100
77,527
9,650
Noninterest income
48,682
40,238
25,814
30,183
29,031
68
114,734
74,530
54
Total revenue
155,343
115,999
122,229
143,321
145,269
7
393,571
417,636
(6
)
Expenses
95,981
83,980
81,538
81,424
82,924
16
261,499
240,821
9
Income before income tax expense
59,362
32,019
40,691
61,897
62,345
(5
)
132,072
176,815
(25
)
Income tax expense
11,755
6,923
8,807
12,885
13,983
(16
)
27,485
40,106
(31
)
Net income
47,607
25,096
31,884
49,012
48,362
(2
)
104,587
136,709
(23
)
Merger-related and other charges
3,361
397
808
(74
)
2,605
4,566
7,431
Income tax benefit of merger-related and other charges
(519
)
(87
)
(182
)
17
(600
)
(788
)
(1,712
)
Net income - operating (1)
$
50,449
$
25,406
$
32,510
$
48,955
$
50,367
—
$
108,365
$
142,428
(24
)
Pre-tax pre-provision income (5)
$
81,155
$
65,562
$
62,882
$
65,397
$
65,445
24
$
209,599
$
186,465
12
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP
$
0.52
$
0.32
$
0.40
$
0.61
$
0.60
(13
)
$
1.25
$
1.70
(26
)
Diluted net income - operating (1)
0.55
0.32
0.41
0.61
0.63
(13
)
1.29
1.77
(27
)
Cash dividends declared
0.18
0.18
0.18
0.18
0.17
6
0.54
0.50
8
Book value
21.45
21.22
20.80
20.53
20.16
6
21.45
20.16
6
Tangible book value (3)
17.09
16.95
16.52
16.28
15.90
7
17.09
15.90
7
Key performance ratios:
Return on common equity - GAAP (2)(4)
10.06
%
6.17
%
7.85
%
12.07
%
12.16
%
8.11
%
11.83
%
Return on common equity - operating (1)(2)(4)
10.69
6.25
8.01
12.06
12.67
8.40
12.32
Return on tangible common equity - operating (1)(2)(3)(4)
13.52
8.09
10.57
15.49
16.38
10.76
15.92
Return on assets - GAAP (4)
1.07
0.71
0.99
1.50
1.51
0.93
1.45
Return on assets - operating (1)(4)
1.14
0.72
1.01
1.50
1.58
0.97
1.51
Return on assets - pre-tax pre-provision (4)(5)
1.86
1.86
1.95
2.00
2.05
1.89
1.98
Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5)
1.93
1.87
1.98
2.00
2.13
1.93
2.06
Net interest margin (fully taxable equivalent) (4)
3.27
3.42
4.07
3.93
4.12
3.55
4.11
Efficiency ratio - GAAP
54.14
55.86
56.15
54.87
55.64
55.30
56.09
Efficiency ratio - operating (1)
52.24
55.59
55.59
54.92
53.90
54.34
54.36
Equity to total assets
11.47
11.81
12.54
12.66
12.53
11.47
12.53
Tangible common equity to tangible assets (3)
8.89
9.12
10.22
10.32
10.16
8.89
10.16
ASSET QUALITY
Nonperforming loans
$
49,084
$
48,021
$
36,208
$
35,341
$
30,832
59
$
49,084
$
30,832
59
Foreclosed properties
953
477
475
476
102
953
102
Total nonperforming assets ("NPAs")
50,037
48,498
36,683
35,817
30,934
62
50,037
30,934
62
Allowance for credit losses - loans
134,256
103,669
81,905
62,089
62,514
115
134,256
62,514
115
Net charge-offs
2,538
6,149
8,114
3,925
2,723
(7
)
16,801
8,291
103
Allowance for credit losses - loans to loans
1.14
%
1.02
%
0.92
%
0.70
%
0.70
%
1.14
%
0.70
%
Net charge-offs to average loans (4)
0.09
0.25
0.37
0.18
0.12
0.22
0.13
NPAs to loans and foreclosed properties
0.42
0.48
0.41
0.41
0.35
0.42
0.35
NPAs to total assets
0.29
0.32
0.28
0.28
0.24
0.29
0.24
AVERAGE BALANCES ($ in millions)
Loans
$
11,644
$
9,773
$
8,829
$
8,890
$
8,836
32
$
10,088
$
8,647
17
Investment securities
2,750
2,408
2,520
2,486
2,550
8
2,560
2,701
(5
)
Earning assets
15,715
12,958
11,798
11,832
11,568
36
13,498
11,534
17
Total assets
17,013
14,173
12,944
12,946
12,681
34
14,718
12,600
17
Deposits
14,460
12,071
10,915
10,924
10,531
37
12,490
10,462
19
Shareholders’ equity
1,948
1,686
1,653
1,623
1,588
23
1,763
1,533
15
Common shares - basic (thousands)
87,129
78,920
79,340
79,659
79,663
9
81,815
79,714
3
Common shares - diluted (thousands)
87,205
78,924
79,446
79,669
79,667
9
81,876
79,718
3
AT PERIOD END ($ in millions)
Loans
$
11,799
$
10,133
$
8,935
$
8,813
$
8,903
33
$
11,799
$
8,903
33
Investment securities
3,089
2,432
2,540
2,559
2,515
23
3,089
2,515
23
Total assets
17,153
15,005
13,086
12,916
12,809
34
17,153
12,809
34
Deposits
14,603
12,702
11,035
10,897
10,757
36
14,603
10,757
36
Shareholders’ equity
1,967
1,772
1,641
1,636
1,605
23
1,967
1,605
23
Common shares outstanding (thousands)
86,611
78,335
78,284
79,014
78,974
10
86,611
78,974
10
(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
For the Nine Months Ended
September 30,
Third
Second
First
Fourth
Third
(in thousands, except per share data)
Quarter
Quarter
Quarter
Quarter
Quarter
2020
2019
Expense reconciliation
Expenses (GAAP)
$
95,981
$
83,980
$
81,538
$
81,424
$
82,924
$
261,499
$
240,821
Merger-related and other charges
(3,361
)
(397
)
(808
)
74
(2,605
)
(4,566
)
(7,431
)
Expenses - operating
$
92,620
$
83,583
$
80,730
$
81,498
$
80,319
$
256,933
$
233,390
Net income to operating income reconciliation
Net income (GAAP)
$
47,607
$
25,096
$
31,884
$
49,012
$
48,362
$
104,587
$
136,709
Merger-related and other charges
3,361
397
808
(74
)
2,605
4,566
7,431
Income tax benefit of merger-related and other charges
(519
)
(87
)
(182
)
17
(600
)
(788
)
(1,712
)
Net income - operating
$
50,449
$
25,406
$
32,510
$
48,955
$
50,367
$
108,365
$
142,428
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)
$
47,607
$
25,096
$
31,884
$
49,012
$
48,362
$
104,587
$
136,709
Income tax expense
11,755
6,923
8,807
12,885
13,983
27,485
40,106
Provision for credit losses
21,793
33,543
22,191
3,500
3,100
77,527
9,650
Pre-tax pre-provision income
$
81,155
$
65,562
$
62,882
$
65,397
$
65,445
$
209,599
$
186,465
Diluted income per common share reconciliation
Diluted income per common share (GAAP)
$
0.52
$
0.32
$
0.40
$
0.61
$
0.60
$
1.25
$
1.70
Merger-related and other charges, net of tax
0.03
—
0.01
—
0.03
0.04
0.07
Diluted income per common share - operating
$
0.55
$
0.32
$
0.41
$
0.61
$
0.63
$
1.29
$
1.77
Book value per common share reconciliation
Book value per common share (GAAP)
$
21.45
$
21.22
$
20.80
$
20.53
$
20.16
$
21.45
$
20.16
Effect of goodwill and other intangibles
(4.36
)
(4.27
)
(4.28
)
(4.25
)
(4.26
)
(4.36
)
(4.26
)
Tangible book value per common share
$
17.09
$
16.95
$
16.52
$
16.28
$
15.90
$
17.09
$
15.90
Return on tangible common equity reconciliation
Return on common equity (GAAP)
10.06
%
6.17
%
7.85
%
12.07
%
12.16
%
8.11
%
11.83
%
Merger-related and other charges, net of tax
0.63
0.08
0.16
(0.01
)
0.51
0.29
0.49
Return on common equity - operating
10.69
6.25
8.01
12.06
12.67
8.40
12.32
Effect of goodwill and other intangibles
2.83
1.84
2.56
3.43
3.71
2.36
3.60
Return on tangible common equity - operating
13.52
%
8.09
%
10.57
%
15.49
%
16.38
%
10.76
%
15.92
%
Return on assets reconciliation
Return on assets (GAAP)
1.07
%
0.71
%
0.99
%
1.50
%
1.51
%
0.93
%
1.45
%
Merger-related and other charges, net of tax
0.07
0.01
0.02
—
0.07
0.04
0.06
Return on assets - operating
1.14
%
0.72
%
1.01
%
1.50
%
1.58
%
0.97
%
1.51
%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)
1.07
%
0.71
%
0.99
%
1.50
%
1.51
%
0.93
%
1.45
%
Income tax expense
0.28
0.20
0.27
0.39
0.44
0.26
0.43
Provision for credit losses
0.51
0.95
0.69
0.11
0.10
0.70
0.10
Return on assets - pre-tax, pre-provision
1.86
1.86
1.95
2.00
2.05
1.89
1.98
Merger-related and other charges
0.07
0.01
0.03
—
0.08
0.04
0.08
Return on assets - pre-tax pre-provision, excluding merger-related and other charges
1.93
%
1.87
%
1.98
%
2.00
%
2.13
%
1.93
%
2.06
%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)
54.14
%
55.86
%
56.15
%
54.87
%
55.64
%
55.30
%
56.09
%
Merger-related and other charges
(1.90
)
(0.27
)
(0.56
)
0.05
(1.74
)
(0.96
)
(1.73
)
Efficiency ratio - operating
52.24
%
55.59
%
55.59
%
54.92
%
53.90
%
54.34
%
54.36
%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)
11.47
%
11.81
%
12.54
%
12.66
%
12.53
%
11.47
%
12.53
%
Effect of goodwill and other intangibles
(2.02
)
(2.05
)
(2.32
)
(2.34
)
(2.37
)
(2.02
)
(2.37
)
Effect of preferred equity
(0.56
)
(0.64
)
—
—
—
(0.56
)
—
Tangible common equity to tangible assets
8.89
%
9.12
%
10.22
%
10.32
%
10.16
%
8.89
%
10.16
%



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2020
2019
Linked
Year over
(in millions)
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
Quarter
Change
Year
Change
LOANS BY CATEGORY
Owner occupied commercial RE
$
2,009
$
1,759
$
1,703
$
1,720
$
1,692
$
250
$
317
Income producing commercial RE
2,493
2,178
2,065
2,008
1,934
315
559
Commercial & industrial
1,788
1,219
1,310
1,221
1,271
569
517
Paycheck protection program
1,317
1,095
—
—
—
222
1,317
Commercial construction
987
946
959
976
1,001
41
(14
)
Equipment financing
823
779
761
745
729
44
94
Total commercial
9,417
7,976
6,798
6,670
6,627
1,441
2,790
Residential mortgage
1,270
1,152
1,128
1,118
1,121
118
149
Home equity lines of credit
707
654
668
661
669
53
38
Residential construction
257
230
216
236
229
27
28
Consumer
148
121
125
128
257
27
(109
)
Total loans
$
11,799
$
10,133
$
8,935
$
8,813
$
8,903
$
1,666
$
2,896
LOANS BY MARKET
North Georgia
$
945
$
951
$
958
$
967
$
1,002
$
(6
)
$
(57
)
Atlanta
1,853
1,852
1,820
1,762
1,740
1
113
North Carolina
1,246
1,171
1,124
1,156
1,117
75
129
Coastal Georgia
614
618
604
631
611
(4
)
3
Gainesville
229
233
235
246
246
(4
)
(17
)
East Tennessee
420
433
425
421
435
(13
)
(15
)
South Carolina
1,870
1,778
1,774
1,708
1,705
92
165
Florida
1,453
—
—
—
—
1,453
1,453
Commercial Banking Solutions
3,169
3,097
1,995
1,922
1,916
72
1,253
Indirect auto
—
—
—
—
131
—
(131
)
Total loans
$
11,799
$
10,133
$
8,935
$
8,813
$
8,903
$
1,666
$
2,896

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
2020
(in thousands)
Third
Quarter
Second
Quarter
First
Quarter
NONACCRUAL LOANS
Owner occupied RE
$
11,075
$
10,710
$
10,405
Income producing RE
12,230
11,274
2,235
Commercial & industrial
3,534
3,432
3,169
Commercial construction
1,863
2,290
1,724
Equipment financing
3,137
3,119
2,439
Total commercial
31,839
30,825
19,972
Residential mortgage
13,864
13,185
12,458
Home equity lines of credit
2,642
3,138
3,010
Residential construction
479
500
540
Consumer
260
373
228
Total
$
49,084
$
48,021
$
36,208
2020
Third Quarter
Second Quarter
First Quarter
(in thousands)
Net Charge-
Offs
Net Charge-
Offs to
Average Loans
(1)
Net Charge-
Offs
Net Charge-
Offs to
Average Loans
(1)
Net Charge-
Offs
Net Charge-
Offs to
Average Loans
(1)
NET CHARGE-OFFS BY CATEGORY
Owner occupied RE
$
(725
)
(0.14
)
%
$
(466
)
(0.11
)
%
$
(1,028
)
(0.24
)
%
Income producing RE
1,785
0.29
4,548
0.86
270
0.05
Commercial & industrial
(105
)
(0.01
)
(37
)
(0.01
)
7,185
2.30
Commercial construction
(171
)
(0.07
)
122
0.05
(141
)
(0.06
)
Equipment financing
1,993
0.93
1,665
0.87
1,507
0.81
Total commercial
2,777
0.12
5,832
0.31
7,793
0.47
Residential mortgage
(35
)
(0.01
)
(6
)
—
9
—
Home equity lines of credit
(125
)
(0.07
)
(98
)
(0.06
)
(83
)
(0.05
)
Residential construction
—
—
(5
)
(0.01
)
(12
)
(0.02
)
Consumer
(79
)
(0.22
)
426
1.39
407
1.30
Total
$
2,538
0.09
$
6,149
0.25
$
8,114
0.37
(1) Annualized.


UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
September 30,
2020
December 31,
2019
ASSETS
Cash and due from banks
$
122,048
$
125,844
Interest-bearing deposits in banks
923,591
389,362
Cash and cash equivalents
1,045,639
515,206
Debt securities available-for-sale
2,690,448
2,274,581
Debt securities held-to-maturity (fair value $413,820 and $287,904)
398,373
283,533
Loans held for sale at fair value
128,587
58,484
Loans and leases held for investment
11,798,910
8,812,553
Less allowance for credit losses - loans and leases
(134,256
)
(62,089
)
Loans and leases, net
11,664,654
8,750,464
Premises and equipment, net
211,885
215,976
Bank owned life insurance
201,515
202,664
Accrued interest receivable
48,091
32,660
Net deferred tax asset
39,818
34,059
Derivative financial instruments
103,388
35,007
Goodwill and other intangible assets, net
384,074
342,247
Other assets
236,405
171,135
Total assets
$
17,152,877
$
12,916,016
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand
$
5,227,170
$
3,477,979
NOW and interest-bearing demand
2,989,455
2,461,895
Money market
3,399,793
2,230,628
Savings
891,147
706,467
Time
1,819,586
1,859,574
Brokered
276,225
160,701
Total deposits
14,603,376
10,897,244
Long-term debt
326,703
212,664
Derivative financial instruments
33,519
15,516
Accrued expenses and other liabilities
222,024
154,900
Total liabilities
15,185,622
11,280,324
Shareholders' equity:
Preferred stock; $1 par value; 10,000,000 shares authorized;
Series I, $25,000 per share liquidation preference; 4,000 shares issued and outstanding
96,422
—
Common stock, $1 par value; 150,000,000 shares authorized;
86,611,114 and 79,013,729 shares issued and outstanding
86,611
79,014
Common stock issuable; 590,521 and 664,640 shares
10,632
11,491
Capital surplus
1,637,467
1,496,641
Retained earnings
94,938
40,152
Accumulated other comprehensive income
41,185
8,394
Total shareholders' equity
1,967,255
1,635,692
Total liabilities and shareholders' equity
$
17,152,877
$
12,916,016


UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, except per share data)
2020
2019
2020
2019
Interest revenue:
Loans, including fees
$
126,936
$
122,645
$
352,861
$
357,575
Investment securities, including tax exempt of $1,895, $1,118, $4,988 and $3,409
14,558
17,744
47,567
57,638
Deposits in banks and short-term investments
279
226
1,497
1,074
Total interest revenue
141,773
140,615
401,925
416,287
Interest expense:
Deposits:
NOW and interest-bearing demand
1,634
3,214
6,240
10,283
Money market
3,017
5,126
10,969
14,100
Savings
47
41
121
115
Time
4,300
8,732
18,014
25,687
Deposits
8,998
17,113
35,344
50,185
Short-term borrowings
2
429
3
838
Federal Home Loan Bank advances
27
521
28
2,695
Long-term debt
4,292
3,214
10,186
9,813
Total interest expense
13,319
21,277
45,561
63,531
Net interest revenue
128,454
119,338
356,364
352,756
Provision for credit losses
21,793
3,100
77,527
9,650
Net interest revenue after provision for credit losses
106,661
116,238
278,837
343,106
Noninterest income:
Service charges and fees
8,260
9,916
23,893
27,429
Mortgage loan gains and other related fees
25,144
8,658
57,113
17,750
Brokerage and wealth management fees
3,055
1,699
6,019
4,624
Gains from sales of other loans, net
1,175
1,639
3,889
4,412
Securities gains (losses), net
746
—
746
(118
)
Other
10,302
7,119
23,074
20,433
Total noninterest income
48,682
29,031
114,734
74,530
Total revenue
155,343
145,269
393,571
417,636
Noninterest expenses:
Salaries and employee benefits
59,067
50,501
162,236
146,161
Communications and equipment
6,960
6,223
19,462
18,233
Occupancy
7,050
5,921
18,709
17,424
Advertising and public relations
1,778
1,374
5,312
4,256
Postage, printing and supplies
1,703
1,618
4,986
4,733
Professional fees
5,083
4,715
14,003
11,930
Lending and loan servicing expense
3,043
2,556
8,525
7,509
Outside services - electronic banking
1,888
1,934
5,516
5,101
FDIC assessments and other regulatory charges
1,346
314
4,388
3,571
Amortization of intangibles
1,099
1,210
3,126
3,845
Merger-related and other charges
3,361
2,541
4,566
6,981
Other
3,603
4,017
10,670
11,077
Total noninterest expenses
95,981
82,924
261,499
240,821
Net income before income taxes
59,362
62,345
132,072
176,815
Income tax expense
11,755
13,983
27,485
40,106
Net income
47,607
48,362
104,587
136,709
Preferred stock dividends
1,814
—
1,814
—
Dividends and undistributed earnings allocated to unvested shares
356
351
779
982
Net income available to common shareholders
$
45,437
$
48,011
$
101,994
$
135,727
Net income per common share:
Basic
$
0.52
$
0.60
$
1.25
$
1.70
Diluted
0.52
0.60
1.25
1.70
Weighted average common shares outstanding:
Basic
87,129
79,663
81,815
79,714
Diluted
87,205
79,667
81,876
79,718


Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
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)
$
11,644,202
$
126,342
4.32
%
$
8,835,585
$
122,526
5.50
%
Taxable securities (3)
2,499,649
12,663
2.03
2,379,927
16,626
2.79
Tax-exempt securities (FTE) (1)(3)
249,959
2,544
4.07
170,027
1,502
3.53
Federal funds sold and other interest-earning assets
1,321,445
1,132
0.34
182,935
616
1.35
Total interest-earning assets (FTE)
15,715,255
142,681
3.61
11,568,474
141,270
4.85
Noninterest-earning assets:
Allowance for credit losses
(128,581
)
(63,474
)
Cash and due from banks
135,949
116,922
Premises and equipment
216,326
221,930
Other assets (3)
1,074,529
836,951
Total assets
$
17,013,478
$
12,680,803
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand
$
2,890,735
1,634
0.22
$
2,123,910
3,214
0.60
Money market
3,501,781
3,017
0.34
2,277,162
5,126
0.89
Savings
864,849
47
0.02
695,297
41
0.02
Time
1,933,764
4,127
0.85
1,879,801
8,053
1.70
Brokered time deposits
96,198
173
0.72
102,078
679
2.64
Total interest-bearing deposits
9,287,327
8,998
0.39
7,078,248
17,113
0.96
Federal funds purchased and other borrowings
4,405
2
0.18
73,733
429
2.31
Federal Home Loan Bank advances
2,818
27
3.81
88,261
521
2.34
Long-term debt
327,017
4,292
5.22
243,935
3,214
5.23
Total borrowed funds
334,240
4,321
5.14
405,929
4,164
4.07
Total interest-bearing liabilities
9,621,567
13,319
0.55
7,484,177
21,277
1.13
Noninterest-bearing liabilities:
Noninterest-bearing deposits
5,172,999
3,453,174
Other liabilities
270,451
155,107
Total liabilities
15,065,017
11,092,458
Shareholders' equity
1,948,461
1,588,345
Total liabilities and shareholders' equity
$
17,013,478
$
12,680,803
Net interest revenue (FTE)
$
129,362
$
119,993
Net interest-rate spread (FTE)
3.06
%
3.72
%
Net interest margin (FTE) (4)
3.27
%
4.12
%

(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 $77.0 million in 2020 and unrealized gains of $35.1 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.


Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
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)
$
10,087,630
$
351,536
4.65
%
$
8,646,622
$
357,541
5.53
%
Taxable securities (3)
2,362,674
42,579
2.40
2,532,070
54,229
2.86
Tax-exempt securities (FTE) (1)(3)
197,231
6,699
4.53
168,787
4,579
3.62
Federal funds sold and other interest-earning assets
850,722
3,621
0.57
186,402
1,913
1.37
Total interest-earning assets (FTE)
13,498,257
404,435
4.00
11,533,881
418,262
4.85
Non-interest-earning assets:
Allowance for loan losses
(96,235
)
(62,664
)
Cash and due from banks
134,354
121,889
Premises and equipment
217,551
220,872
Other assets (3)
964,511
785,862
Total assets
$
14,718,438
$
12,599,840
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand
$
2,583,911
6,240
0.32
$
2,199,607
10,283
0.63
Money market
2,797,350
10,969
0.52
2,187,822
14,100
0.86
Savings
788,681
121
0.02
685,167
115
0.02
Time
1,860,597
17,435
1.25
1,761,374
20,338
1.54
Brokered time deposits
102,502
579
0.75
292,835
5,349
2.44
Total interest-bearing deposits
8,133,041
35,344
0.58
7,126,805
50,185
0.94
Federal funds purchased and other borrowings
1,611
3
0.25
44,898
838
2.50
Federal Home Loan Bank advances
1,001
28
3.74
142,876
2,695
2.52
Long-term debt
256,218
10,186
5.31
252,686
9,813
5.19
Total borrowed funds
258,830
10,217
5.27
440,460
13,346
4.05
Total interest-bearing liabilities
8,391,871
45,561
0.73
7,567,265
63,531
1.12
Noninterest-bearing liabilities:
Noninterest-bearing deposits
4,356,484
3,335,450
Other liabilities
206,904
164,350
Total liabilities
12,955,259
11,067,065
Shareholders' equity
1,763,179
1,532,775
Total liabilities and shareholders' equity
$
14,718,438
$
12,599,840
Net interest revenue (FTE)
$
358,874
$
354,731
Net interest-rate spread (FTE)
3.27
%
3.73
%
Net interest margin (FTE) (4)
3.55
%
4.11
%

(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 $65.5 million in 2020 and unrealized gains of $4.94 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) (United) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $17.2 billion in assets, and 163 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee. United Community Bank, United’s wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, including Florida under the brand Seaside Bank and Trust. Services include a full range of consumer and commercial banking products, including mortgage, advisory, treasury management, and wealth management. Respected national research firms consistently recognize United for outstanding customer service. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2020 list of the 100 Best Banks in America for the seventh consecutive year. United also received five Greenwich Excellence Awards in 2019 for excellence in Small Business Banking and Middle Market Banking, including a national award for Overall Satisfaction in Small Business Banking. Additional information about United 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

Stock Information
Company Name: United Community Banks Inc.
Stock Symbol: UCBI
Market: NASDAQ
Website: ucbi.com
Menu
UCBI UCBI Quote UCBI Short UCBI News UCBI Articles UCBI Message Board
Get UCBI Alerts

News, Short Squeeze, Breakout and More Instantly...