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CST: 14/10/2019 21:28:44   

United Community Banks, Inc. Reports Second Quarter Results

83 Days ago

EPS of $0.55 and ROA of 1.40%; Operating ROA reaches 1.50%

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 

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