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CST: 14/10/2019 20:23:29   

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

174 Days ago

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

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

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

First Quarter 2019 Financial Highlights:

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

Conference Call

United will hold a conference call, Wednesday, April 24, 2019, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 9567597.  The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.

UNITED COMMUNITY BANKS, INC.                                    
Financial Highlights                                    
Selected Financial Information                                    
                                     
                                  First
    2019
    2018       Quarter
      First         Fourth         Third         Second         First       2019-2018
(in thousands, except per share data)   Quarter     Quarter     Quarter     Quarter     Quarter       Change
INCOME SUMMARY                                    
Interest revenue $ 136,516     $ 133,854     $ 128,721     $ 122,215     $ 115,290          
Interest expense   20,882       18,975       16,611       13,739       12,005          
Net interest revenue   115,634       114,879       112,110       108,476       103,285       12   %
Provision for credit losses   3,300       2,100       1,800       1,800       3,800       (13 )  
Noninterest income   20,968       23,045       24,180       23,340       22,396       (6 )  
Total revenue   133,302       135,824       134,490       130,016       121,881       9    
Expenses   76,084       78,242       77,718       76,850       73,475       4    
Income before income tax expense   57,218       57,582       56,772       53,166       48,406       18    
Income tax expense   12,956       12,445       13,090       13,532       10,748       21    
Net income   44,262       45,137       43,682       39,634       37,658       18    
Merger-related and other charges   739       1,234       592       2,873       2,646          
Income tax benefit of merger-related and other charges   (172 )     (604 )     (141 )     (121 )     (628 )        
Net income - operating (1) $   44,829     $   45,767     $   44,133     $   42,386     $   39,676       13    
                                     
PERFORMANCE MEASURES                                    
Per common share:                                    
Diluted net income - GAAP $ 0.55     $ 0.56     $ 0.54     $ 0.49     $ 0.47       17    
Diluted net income - operating  (1)   0.56       0.57       0.55       0.53       0.50       12    
Cash dividends declared   0.16       0.16       0.15       0.15       0.12       33    
Book value   18.93       18.24       17.56       17.29       17.02       11    
Tangible book value (3)   14.93       14.24       13.54       13.25       12.96       15    
                                     
Key performance ratios:                                    
Return on common equity - GAAP (2)(4)   11.85   % 12.08   % 11.96   % 11.20   % 11.11   %      
Return on common equity - operating (1)(2)(4)   12.00       12.25       12.09       11.97       11.71          
Return on tangible common equity - operating (1)(2)(3)(4)   15.46       15.88       15.81       15.79       15.26          
Return on assets - GAAP (4)   1.44       1.43       1.41       1.30       1.26          
Return on assets - operating (1)(4)   1.45       1.45       1.42       1.39       1.33          
Dividend payout ratio - GAAP   29.09       28.57       27.78       30.61       25.53          
Dividend payout ratio - operating (1)   28.57       28.07       27.27       28.30       24.00          
Net interest margin (fully taxable equivalent) (4)   4.10       3.97       3.95       3.90       3.80          
Efficiency ratio - GAAP   55.32       56.73       56.82       57.94       57.83          
Efficiency ratio - operating  (1)   54.78       55.83       56.39       55.77       55.75          
Average equity to average assets   11.82       11.35       11.33       11.21       11.03          
Average tangible common equity to average assets (3)   9.53       9.04       8.97       8.83       8.82          
Tangible common equity to risk-weighted assets (3)(5)   12.48       12.00       11.61       11.36       11.19          
                                     
ASSET QUALITY                                    
Nonperforming loans $ 23,624     $ 23,778     $ 22,530     $ 21,817     $ 26,240       (10 )  
Foreclosed properties   1,127       1,305       1,336       2,597       2,714       (58 )  
Total nonperforming assets (NPAs)   24,751       25,083       23,866       24,414       28,954       (15 )  
Allowance for loan losses   61,642       61,203       60,940       61,071       61,085       1    
Net charge-offs   3,130       1,787       1,466       1,359       1,501       109    
Allowance for loan losses to loans   0.73   % 0.73   % 0.74   % 0.74   % 0.75   %      
Net charge-offs to average loans (4)   0.15       0.09       0.07       0.07       0.08          
NPAs to loans and foreclosed properties   0.29       0.30       0.29       0.30       0.35          
NPAs to total assets   0.20       0.20       0.19       0.20       0.24          
                                     
AVERAGE BALANCES ($ in millions)                                    
Loans $ 8,430     $ 8,306     $ 8,200     $ 8,177     $ 7,993       5    
Investment securities   2,883       3,004       2,916       2,802       2,870       -    
Earning assets   11,498       11,534       11,320       11,193       11,076       4    
Total assets   12,509       12,505       12,302       12,213       12,111       3    
Deposits   10,361       10,306       9,950       9,978       9,759       6    
Shareholders’ equity   1,478       1,420       1,394       1,370       1,336       11    
Common shares - basic (thousands)   79,807       79,884       79,806       79,753       79,205       1    
Common shares - diluted (thousands)   79,813       79,890       79,818       79,755       79,215       1    
                                     
AT PERIOD END ($ in millions)                                    
Loans $ 8,493     $ 8,383     $ 8,226     $ 8,220     $ 8,184       4    
Investment securities   2,720       2,903       2,873       2,834       2,731       -    
Total assets   12,506       12,573       12,405       12,386       12,264       2    
Deposits   10,534       10,535       10,229       9,966       9,993       5    
Shareholders’ equity   1,508       1,458       1,402       1,379       1,357       11    
Common shares outstanding (thousands)   79,035       79,234       79,202       79,138       79,123       -    
                                     
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits. (2)  Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).  (3)  Excludes effect of acquisition related intangibles and associated amortization.  (4)  Annualized.  (5)  First quarter 2019 ratio is preliminary.
                                     

 

UNITED COMMUNITY BANKS, INC.                          
Non-GAAP Performance Measures Reconciliation                    
Selected Financial Information                            
                             
                             
  2019       2018    
    First         Fourth         Third         Second         First    
(in thousands, except per share data) Quarter     Quarter     Quarter     Quarter     Quarter  
                             
Expense reconciliation                            
Expenses (GAAP) $ 76,084       $ 78,242       $ 77,718       $ 76,850       $ 73,475    
Merger-related and other charges   (739 )       (1,234 )       (592 )       (2,873 )       (2,646 )  
Expenses - operating $ 75,345       $ 77,008       $ 77,126       $ 73,977       $ 70,829    
                             
Net income reconciliation                            
Net income (GAAP) $ 44,262       $ 45,137       $ 43,682       $ 39,634       $ 37,658    
Merger-related and other charges   739         1,234         592         2,873         2,646    
Income tax benefit of merger-related and other charges   (172 )       (604 )       (141 )       (121 )       (628 )  
Net income - operating $ 44,829       $ 45,767       $ 44,133       $ 42,386       $ 39,676    
Diluted income per common share reconciliation                          
Diluted income per common share (GAAP) $ 0.55       $ 0.56       $ 0.54       $ 0.49       $ 0.47    
Merger-related and other charges   0.01         0.01         0.01         0.04         0.03    
Diluted income per common share - operating $ 0.56       $ 0.57       $ 0.55       $ 0.53       $ 0.50    
                             
Book value per common share reconciliation                            
Book value per common share (GAAP) $ 18.93       $ 18.24       $ 17.56       $ 17.29       $ 17.02    
Effect of goodwill and other intangibles   (4.00 )       (4.00 )       (4.02 )       (4.04 )       (4.06 )  
Tangible book value per common share $ 14.93       $ 14.24       $ 13.54       $ 13.25       $ 12.96    
                             
Return on tangible common equity reconciliation                          
Return on common equity (GAAP)   11.85   %     12.08   %     11.96   %     11.20   %     11.11   %
Merger-related and other charges   0.15         0.17         0.13         0.77         0.60    
Return on common equity - operating   12.00         12.25         12.09         11.97         11.71    
Effect of goodwill and other intangibles   3.46         3.63         3.72         3.82         3.55    
Return on tangible common equity - operating   15.46   %     15.88   %     15.81   %     15.79   %     15.26   %
                             
Return on assets reconciliation                            
Return on assets (GAAP)   1.44   %     1.43   %     1.41   %     1.30   %     1.26   %
Merger-related and other charges   0.01         0.02         0.01         0.09         0.07    
Return on assets - operating   1.45   %     1.45   %     1.42   %     1.39   %     1.33   %
                             
Dividend payout ratio reconciliation                            
Dividend payout ratio (GAAP)   29.09   %     28.57   %     27.78   %     30.61   %     25.53   %
Merger-related and other charges   (0.52 )       (0.50 )       (0.51 )       (2.31 )       (1.53 )  
Dividend payout ratio - operating   28.57   %     28.07   %     27.27   %     28.30   %     24.00   %
                             
Efficiency ratio reconciliation                            
Efficiency ratio (GAAP)   55.32   %     56.73   %     56.82   %     57.94   %     57.83   %
Merger-related and other charges   (0.54 )       (0.90 )       (0.43 )       (2.17 )       (2.08 )  
Efficiency ratio - operating   54.78   %     55.83   %     56.39   %     55.77   %     55.75   %
                             
Average equity to average assets reconciliation                            
Average equity to assets (GAAP)   11.82   %     11.35   %     11.33   %     11.21   %     11.03   %
Effect of goodwill and other intangibles   (2.29 )       (2.31 )       (2.36 )       (2.38 )       (2.21 )  
Average tangible common equity to average assets   9.53   %     9.04   %     8.97   %     8.83   %     8.82   %
                             
Tangible common equity to risk-weighted assets reconciliation (1)                    
Tier 1 capital ratio (Regulatory)   12.69   %     12.42   %     12.25   %     11.94   %     11.61   %
Effect of other comprehensive income   (0.17 )       (0.44 )       (0.68 )       (0.57 )       (0.50 )  
Effect of deferred tax limitation   0.22         0.28         0.30         0.33         0.42    
Effect of trust preferred   (0.26 )       (0.26 )       (0.26 )       (0.34 )       (0.34 )  
Tangible common equity to risk-weighted assets   12.48   %     12.00   %     11.61   %     11.36   %     11.19   %
                             
(1)  First quarter 2019 ratios are preliminary.                            
                             

 

UNITED COMMUNITY BANKS, INC.                    
Financial Highlights                          
Loan Portfolio Composition at Period-End                    
                           
                                   
   2019     2018     Linked       Year over  
    First       Fourth       Third       Second       First       Quarter       Year  
(in millions) Quarter   Quarter   Quarter   Quarter   Quarter     Change       Change  
LOANS BY CATEGORY                          
Owner occupied commercial RE $ 1,620   $ 1,648   $ 1,673   $ 1,682   $ 1,898   $ (28 )   $ (278 )
Income producing commercial RE   1,867     1,812     1,788     1,821     1,677     55       190  
Commercial & industrial   1,284     1,278     1,194     1,193     1,142     6       142  
Commercial construction   866     796     761     735     691     70       175  
Equipment financing   606     565     509     465     423     41       183  
Total commercial   6,243     6,099     5,925     5,896     5,831     144       412  
Residential mortgage   1,064     1,049     1,035     1,021     992     15       72  
Home equity lines of credit   684     694     702     708     712     (10 )     (28 )
Residential construction   200     211     198     195     190     (11 )     10  
Consumer   302     330     366     400     459     (28 )     (157 )
Total loans $ 8,493   $ 8,383   $ 8,226   $ 8,220   $ 8,184     110       309  
                           
LOANS BY MARKET                          
North Georgia $ 970   $ 981   $ 992   $ 1,001   $ 1,004     (11 )     (34 )
Atlanta MSA   1,524     1,507     1,493     1,533     1,513     17       11  
North Carolina   1,074     1,072     1,078     1,067     1,037     2       37  
Coastal Georgia   603     588     610     623     635     15       (32 )
Gainesville MSA   243     247     235     230     231     (4 )     12  
East Tennessee   458     477     460     474     473     (19 )     (15 )
South Carolina   1,674     1,645     1,586     1,571     1,537     29       137  
Commercial Banking Solutions   1,766     1,658     1,530     1,444     1,438     108       328  
Indirect auto   181     208     242     277     316     (27 )     (135 )
Total loans $ 8,493   $ 8,383   $ 8,226   $ 8,220   $ 8,184     110       309  
                           

 

UNITED COMMUNITY BANKS, INC.                              
Financial Highlights                                    
Credit Quality                                    
                                     
                                     
    First Quarter 2019   Fourth Quarter 2018   Third Quarter 2018
      Nonperforming       Foreclosed       Total       Nonperforming       Foreclosed       Total       Nonperforming       Foreclosed       Total  
(in thousands)   Loans   Properties   NPAs   Loans   Properties   NPAs   Loans   Properties   NPAs
                                             
NONPERFORMING ASSETS BY CATEGORY                                
Owner occupied CRE   $ 7,030     $ 145     $ 7,175     $ 6,421     $ 170     $ 6,591     $ 4,884     $ 183     $ 5,067  
Income producing CRE     1,276       -       1,276       1,160       -       1,160       1,194       156       1,350  
Commercial & industrial     1,666       -       1,666       1,417       -       1,417       1,516       -       1,516  
Commercial construction     473       421       894       605       421       1,026       825       522       1,347  
Equipment financing     1,813       -       1,813       2,677       -       2,677       1,181       -       1,181  
Total commercial     12,258       566       12,824       12,280       591       12,871       9,600       861       10,461  
Residential mortgage     8,281       336       8,617       8,035       654       8,689       8,928       424       9,352  
Home equity lines of credit     2,233       185       2,418       2,360       60       2,420       2,814       -       2,814  
Residential construction     347       40       387       288       -       288       455       51       506  
Consumer     505       -       505       815       -       815       733       -       733  
Total NPAs   $ 23,624     $ 1,127     $ 24,751     $ 23,778     $ 1,305     $ 25,083     $ 22,530     $ 1,336     $ 23,866  
                                     
NONPERFORMING ASSETS BY MARKET                                
North Georgia   $ 5,848     $ 430     $ 6,278     $ 6,527     $ 286     $ 6,813     $ 7,170     $ 361     $ 7,531  
Atlanta MSA     1,951       -       1,951       1,578       -       1,578       1,778       132       1,910  
North Carolina     3,464       484       3,948       3,259       743       4,002       3,690       480       4,170  
Coastal Georgia     1,881       -       1,881       1,491       -       1,491       1,498       -       1,498  
Gainesville MSA     187       -       187       479       -       479       212       -       212  
East Tennessee     1,555       -       1,555       1,147       -       1,147       1,403       128       1,531  
South Carolina     4,476       213       4,689       4,123       276       4,399       3,280       235       3,515  
Commercial Banking Solutions     3,804       -       3,804       4,448       -       4,448       2,871       -       2,871  
Indirect auto     458       -       458       726       -       726       628       -       628  
Total NPAs   $ 23,624     $ 1,127     $ 24,751     $ 23,778     $ 1,305     $ 25,083     $ 22,530     $ 1,336     $ 23,866  
                                     
NONPERFORMING ASSETS ACTIVITY                                
Beginning Balance   $ 23,778     $ 1,305     $ 25,083     $ 22,530     $ 1,336     $ 23,866     $ 21,817     $ 2,597     $ 24,414  
Loans placed on non-accrual     6,759       -       6,759       5,829       -       5,829       5,759       -       5,759  
Payments received     (3,520 )     -       (3,520 )     (2,780 )     -       (2,780 )     (3,095 )     -       (3,095 )
Loan charge-offs     (2,714 )     -       (2,714 )     (933 )     -       (933 )     (1,588 )     -       (1,588 )
Foreclosures     (679 )     751       72       (868 )     955       87       (363 )     454       91  
Property sales     -       (965 )     (965 )     -       (1,019 )     (1,019 )     -       (1,659 )     (1,659 )
Write downs     -       (6 )     (6 )     -       (112 )     (112 )     -       (166 )     (166 )
Net gains on sales     -       42       42       -       145       145       -       110       110  
Ending Balance   $ 23,624     $ 1,127     $ 24,751     $ 23,778     $ 1,305     $ 25,083     $ 22,530     $ 1,336     $ 23,866  
                                     
    First Quarter 2019   Fourth Quarter 2018   Third Quarter 2018            
(in thousands)   Net
Charge-Offs
  Net Charge-Offs
to Average
 
Loans (1)
  Net
Charge-Offs
  Net Charge-Offs
to Average
 
Loans (1)
  Net
Charge-Offs
  Net Charge-Offs
to Average
 
Loans (1)
           
                                             
NET CHARGE-OFFS BY CATEGORY                                
Owner occupied CRE   $ (64 )     (0.02 ) % $ (52 )     (0.01 ) % $ (251 )     (0.06 ) %        
Income producing CRE     177       0.04       399       0.09       1       -              
Commercial & industrial     1,356       0.43       (149 )     (0.05 )     418       0.14              
Commercial construction     (325 )     (0.16 )     (230 )     (0.12 )     (43 )     (0.02 )            
Equipment financing     1,281       0.89       599       0.44       482       0.39              
Total commercial     2,425       0.16       567       0.04       607       0.04              
Residential mortgage     13       -       290       0.11       171       0.07              
Home equity lines of credit     215       0.13       382       0.22       279       0.16              
Residential construction     (22 )     (0.04 )     (36 )     (0.07 )     (164 )     (0.33 )            
Consumer     499       0.64       584       0.67       573       0.60              
Total   $ 3,130       0.15     $ 1,787       0.09     $ 1,466       0.07              
                                     
NET CHARGE-OFFS BY MARKET                                
North Georgia   $ 263       0.11   % $ 543       0.22   % $ 483       0.19   %        
Atlanta MSA     107       0.03       (159 )     (0.04 )     99       0.03              
North Carolina     307       0.12       68       0.03       (87 )     (0.03 )            
Coastal Georgia     (4 )     -       (86 )     (0.06 )     24       0.02              
Gainesville MSA     (8 )     (0.01 )     333       0.56       (48 )     (0.08 )            
East Tennessee     627       0.54       (111 )     (0.09 )     (1 )     -              
South Carolina     328       0.08       57       0.01       418       0.11              
Commercial Banking Solutions     1,351       0.32       948       0.23       403       0.11              
Indirect auto     159       0.33       194       0.34       175       0.27              
Total   $ 3,130       0.15     $ 1,787       0.09     $ 1,466       0.07              
                                     
(1)  Annualized.                                    
                                     

 

UNITED COMMUNITY BANKS, INC.        
Consolidated Statements of Income (Unaudited)        
         
    Three Months Ended
    March 31,
(in thousands, except per share data)     2019       2018  
         
Interest revenue:        
Loans, including fees   $ 115,259     $ 96,469  
Investment securities, including tax exempt of $1,169 and $972     20,818       18,295  
Deposits in banks and short-term investments     439       526  
Total interest revenue     136,516       115,290  
         
Interest expense:        
Deposits:        
NOW and interest-bearing demand     3,536       1,113  
Money market     4,205       2,175  
Savings     32       49  
Time     8,184       2,956  
Total deposit interest expense     15,957       6,293  
Short-term borrowings     161       300  
Federal Home Loan Bank advances     1,422       2,124  
Long-term debt     3,342       3,288  
Total interest expense     20,882       12,005  
Net interest revenue     115,634       103,285  
Provision for credit losses     3,300       3,800  
Net interest revenue after provision for credit losses     112,334       99,485  
         
Noninterest income:        
Service charges and fees     8,453       8,925  
Mortgage loan and other related fees     3,748       5,359  
Brokerage fees     1,337       872  
Gains from sales of SBA/USDA loans     1,303       1,778  
Securities losses, net     (267 )     (940 )
Other     6,394       6,402  
Total noninterest income     20,968       22,396  
Total revenue     133,302       121,881  
         
Noninterest expenses:        
Salaries and employee benefits     47,503       42,875  
Communications and equipment     5,788       4,632  
Occupancy     5,584       5,613  
Advertising and public relations     1,286       1,515  
Postage, printing and supplies     1,586       1,637  
Professional fees     3,161       4,044  
FDIC assessments and other regulatory charges     1,710       2,476  
Amortization of intangibles     1,293       1,898  
Merger-related and other charges     546       2,054  
Other     7,627       6,731  
Total noninterest expenses     76,084       73,475  
Net income before income taxes     57,218       48,406  
Income tax expense     12,956       10,748  
Net income   $ 44,262     $ 37,658  
         
Net income available to common shareholders   $ 43,947     $ 37,381  
         
Earnings per common share:        
Basic   $ 0.55     $ 0.47  
Diluted     0.55       0.47  
Weighted average common shares outstanding:        
Basic     79,807       79,205  
Diluted     79,813       79,215  
         

 

UNITED COMMUNITY BANKS, INC.        
Consolidated Balance Sheets (Unaudited)        
         
    March 31,   December 31,
(in thousands, except share and per share data)   2019
  2018
         
ASSETS        
Cash and due from banks   $ 118,659     $ 126,083  
Interest-bearing deposits in banks     206,836       201,182  
Cash and cash equivalents     325,495       327,265  
Debt securities available for sale     2,454,625       2,628,467  
Debt securities held to maturity (fair value $265,117 and $268,803)     265,329       274,407  
Loans held for sale at fair value     26,341       18,935  
Loans and leases, net of unearned income     8,493,254       8,383,401  
Less allowance for loan and lease losses     (61,642 )     (61,203 )
Loans, net     8,431,612       8,322,198  
Premises and equipment, net     214,022       206,140  
Bank owned life insurance     193,489       192,616  
Accrued interest receivable     35,126       35,413  
Net deferred tax asset     51,055       64,224  
Derivative financial instruments     25,924       24,705  
Goodwill and other intangible assets     322,779       324,072  
Other assets     160,030       154,750  
Total assets   $ 12,505,827     $ 12,573,192  
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities:        
Deposits:        
Noninterest-bearing demand   $ 3,313,861     $ 3,210,220  
NOW and interest-bearing demand     2,205,117       2,274,775  
Money market     2,106,045       2,097,526  
Savings     681,739       669,886  
Time     1,668,563       1,598,391  
Brokered     558,981       683,715  
Total deposits     10,534,306       10,534,513  
Federal Home Loan Bank advances     40,000       160,000  
Long-term debt     257,259       267,189  
Derivative financial instruments     18,789       26,433  
Accrued expenses and other liabilities     147,315       127,503  
Total liabilities     10,997,669       11,115,638  
Shareholders' equity:        
Common stock, $1 par value; 150,000,000 shares authorized;        
79,035,459 and 79,234,077 shares issued and outstanding     79,035       79,234  
Common stock issuable; 621,491 and 674,499 shares     10,291       10,744  
Capital surplus     1,494,400       1,499,584  
Accumulated deficit     (59,573 )     (90,419 )
Accumulated other comprehensive loss     (15,995 )     (41,589 )
Total shareholders' equity     1,508,158       1,457,554  
Total liabilities and shareholders' equity   $ 12,505,827     $ 12,573,192  
         

 

UNITED COMMUNITY BANKS, INC.                      
Average Consolidated Balance Sheets and Net Interest Analysis                
For the Three Months Ended March 31,                      
                       
  2019       2018    
    Average       Avg.       Average       Avg.  
(dollars in thousands, fully taxable equivalent (FTE))   Balance       Interest   Rate       Balance       Interest   Rate  
Assets:                      
Interest-earning assets:                      
Loans, net of unearned income (FTE) (1)(2) $ 8,429,976     $ 115,347 5.55 %   $ 7,993,339     $ 96,389 4.89 %
Taxable securities (3)   2,712,995       19,649 2.90       2,722,977       17,323 2.54  
Tax-exempt securities (FTE) (1)(3)   169,702       1,570 3.70       146,531       1,309 3.57  
Federal funds sold and other interest-earning assets   185,623       618 1.33       213,055       698 1.31  
                       
Total interest-earning assets (FTE)   11,498,296       137,184 4.83       11,075,902       115,719 4.23  
Noninterest-earning assets:                      
Allowance for loan losses   (61,784 )             (59,144 )        
Cash and due from banks   123,801               160,486          
Premises and equipment   216,611               216,723          
Other assets (3)   731,628               717,385          
Total assets $ 12,508,552             $ 12,111,352          
                       
Liabilities and Shareholders' Equity:                      
Interest-bearing liabilities:                      
Interest-bearing deposits:                      
NOW and interest-bearing demand $ 2,208,816       3,536 0.65     $ 2,083,703       1,113 0.22  
Money market   2,175,855       4,205 0.78       2,230,620       2,175 0.40  
Savings   672,197       32 0.02       655,746       49 0.03  
Time   1,627,584       5,336 1.33       1,535,216       2,241 0.59  
Brokered time deposits   482,048       2,848 2.40       158,358       715 1.83  
Total interest-bearing deposits   7,166,500   -   15,957 0.90       6,663,643   -   6,293 0.38  
                       
Federal funds purchased and other borrowings   21,549       161 3.03       78,732       300 1.55  
Federal Home Loan Bank advances   223,945       1,422 2.58       511,727       2,124 1.68  
Long-term debt   261,971       3,342 5.17       274,480       3,288 4.86  
Total borrowed funds   507,465       4,925 3.94       864,939       5,712 2.68  
                       
Total interest-bearing liabilities   7,673,965       20,882 1.10       7,528,582       12,005 0.65  
Noninterest-bearing liabilities:                      
Noninterest-bearing deposits   3,194,401               3,095,405          
Other liabilities   162,213               150,955          
Total liabilities   11,030,579               10,774,942          
Shareholders' equity   1,477,973               1,336,410          
Total liabilities and shareholders' equity $ 12,508,552             $ 12,111,352          
                       
Net interest revenue (FTE)     $ 116,302           $ 103,714    
Net interest-rate spread (FTE)       3.73 %         3.58 %
                       
Net interest margin (FTE) (4)       4.10 %         3.80 %
                       
(1)  Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26% in 2019 and 2018, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)  Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale.    
(3)  Securities available for sale are shown at amortized cost.  Pretax unrealized losses of $25.9 million in 2019 and $28.3 million in 2018 are included in other assets for purposes of this presentation.    
(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.              
                       

About United Community Banks, Inc.

United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. The company is one of the southeast region’s largest full-service financial institutions with $12.5 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee which operate as United Community Bank, the company’s bank subsidiary. The bank specializes in personalized community banking services for individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For the last five years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. Additional information about the company and the bank can be found at www.ucbi.com.

Non-GAAP Financial Measures

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

Caution About Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in United’s Form 10-K for the year ended December 31, 2018 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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

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