UCBI

UNITED COMMUNITY BANKS INC

Financial Services | Mid Cap

$0.51

EPS Forecast

$238.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-09-30
EX-99.1 2 ucbi123119earningsanno.htm EXHIBIT 99.1 Exhibit



ucbilogoeaa03.jpg

For Immediate Release

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

United Community Banks, Inc. Reports Fourth Quarter Results

EPS of $0.61, Return on Assets of 1.50% and Return on Equity of 12.07%

GREENVILLE, SC - January 21, 2020

United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, including strong year-over-year loan and deposit growth, operating efficiency and asset quality. Diluted earnings per share were $0.61, an increase of $0.05 or 9% from a year ago. Excluding a nominal amount of merger-related and other charges, diluted operating earnings per share were also $0.61, up 7% over last year. United’s return on assets was 1.50% and its return on common equity was 12.1% for the quarter. On an operating basis, United’s return on assets was also 1.50% and its return on tangible common equity was 15.5%.

During the quarter, the company sold its remaining investment in its indirect auto portfolio, completing its exit from that business. Excluding indirect auto, loans grew at a 2% annualized rate in the fourth quarter. United's net interest margin decreased as expected due to falling interest rates. Other items that impacted the net interest margin included seasonally higher average public deposits invested at lower yielding overnight rates and lower purchased loan accretion when compared to previous quarters. Core transaction deposits remained stable and total deposits grew by $140 million.


1



For the full year of 2019, United's return on assets increased 11 basis points to 1.46% and EPS increased by 12%. Operating return on assets increased 11 basis points to 1.51% and operating EPS increased 11%, as the company continued to execute on its plans to deliver top quartile performance. 2019 saw strong operating leverage, resulting in a company best efficiency ratio of 55.8% and an operating efficiency ratio of 54.5%.

“Our fourth quarter caps off what has been an outstanding year for United. Our team continued delivering best in class customer service, which has led to the achievement of our top quartile performance goals,” said Lynn Harton, Chairman and CEO of United. “We are proud and honored that United was named one of the ‘Best Banks to Work For’ by American Banker for the third year in a row, as well as one of the ‘World’s Best Banks in 2019’ by Forbes. These accolades are totally due to the passion and caring of our 2,341 employees and their efforts to build a great company where they can develop fulfilling careers, reach ambitious financial goals and serve United's customers and communities at the highest level. We look forward to continued success in 2020.”


2019 Highlights:
2019 earnings per diluted share were $2.31, a 12% increase over 2018
Excluding merger-related and other charges, operating earnings per diluted share for 2019 were $2.38 compared to $2.14 in 2018, an increase of 11%
Return on assets was 1.46% in 2019, an increase of 11 basis points from 2018
Excluding merger-related and other charges, operating return on assets was 1.51%, an increase of 11 basis points from 2018
Efficiency ratio of 55.8% in 2019 improved 154 basis points as compared to 2018
Excluding merger-related and other charges, efficiency ratio of 54.5% improved 144 basis points as compared to 2018
End of period loans grew $430 million in 2019, up 5% over December 31, 2018
Common Equity Tier 1 ratio was 13.0% at December 31, 2019, compared to 12.2% at December 31, 2018

2



Dividends of $0.68 per share were declared in 2019, up 17% over 2018
United completed the acquisition of First Madison Bank & Trust on May 1, 2019
Share repurchases of 500,495 shares were accomplished during the year at an average price of $26.01


Fourth Quarter 2019 Financial Highlights:
EPS of $0.61, representing growth of 9% over last year, or 7% on an operating basis
Return on assets of 1.50%
Return on common equity of 12.1%
Operating return on tangible common equity of 15.5%, excluding merger-related and other charges
End of period total loans fell by $90 million, but excluding indirect auto, end of period loans grew at a 2% annualized pace
Loan production was strong at $854 million, but was offset by higher than usual paydowns
Despite weaker seasonality, our mortgage business remained strong with loan locks of $411 million, compared to $251 million a year ago due to a favorable rate environment and the impact of new hires
Net interest margin of 3.93% was down 19 basis points compared to the third quarter and down 4 basis points compared to a year ago
Efficiency ratio of 54.9%
Net charge-offs of 18 basis points, up six basis points from last quarter and remaining at historically low levels
Nonperforming assets of 0.28% of total assets, compared with 0.24% at September 30, 2019 and 0.20% at December 31, 2018
Unusual items in the quarter netted to a slight gain, with a $1.6 million bank owned life insurance gain offset by $0.9 million in securities losses. Additionally, our indirect portfolio sales resulted in a $0.7 million loss offset by a $0.5 million indirect portfolio loan loss reserve release



3



Conference Call
United will hold a conference call, Wednesday, January 22, 2020, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 7081477. 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.


4



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Highlights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
Fourth Quarter 2019 - 2018 Change
 
For the Twelve Months Ended December 31,
 
YTD 2019 - 2018 Change
(in thousands, except per share data)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
 
2019
 
2018
 
INCOME SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
Interest revenue
 
$
136,419

 
$
140,615

 
$
139,156

 
$
136,516

 
$
133,854

 
 
 
$
552,706

 
$
500,080

 
 
Interest expense
 
19,781

 
21,277

 
21,372

 
20,882

 
18,975

 
 
 
83,312

 
61,330

 
 
Net interest revenue
 
116,638

 
119,338

 
117,784

 
115,634

 
114,879

 
2
 %
 
469,394

 
438,750

 
7
 %
Provision for credit losses
 
3,500

 
3,100

 
3,250

 
3,300

 
2,100

 
 
 
13,150

 
9,500

 
 
Noninterest income
 
30,183

 
29,031

 
24,531

 
20,968

 
23,045

 
31

 
104,713

 
92,961

 
13

Total revenue
 
143,321

 
145,269

 
139,065

 
133,302

 
135,824

 
6

 
560,957

 
522,211

 
7

Expenses
 
81,424

 
82,924

 
81,813

 
76,084

 
78,242

 
4

 
322,245

 
306,285

 
5

Income before income tax expense
 
61,897

 
62,345

 
57,252

 
57,218

 
57,582

 
 
 
238,712

 
215,926

 
 
Income tax expense
 
12,885

 
13,983

 
13,167

 
12,956

 
12,445

 
 
 
52,991

 
49,815

 
 
Net income
 
49,012

 
48,362

 
44,085

 
44,262

 
45,137

 
 
 
185,721

 
166,111

 
 
Merger-related and other charges
 
(74
)
 
2,605

 
4,087

 
739

 
1,234

 
 
 
7,357

 
7,345

 
 
Income tax benefit of merger-related and other charges
 
17

 
(600
)
 
(940
)
 
(172
)
 
(604
)
 
 
 
(1,695
)
 
(1,494
)
 
 
Net income - operating (1)
 
$
48,955

 
$
50,367

 
$
47,232

 
$
44,829

 
$
45,767

 
7

 
$
191,383

 
$
171,962

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PERFORMANCE MEASURES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income - GAAP
 
$
0.61

 
$
0.60

 
$
0.55

 
$
0.55

 
$
0.56

 
9

 
$
2.31

 
$
2.07

 
12

Diluted net income - operating (1)
 
0.61

 
0.63

 
0.59

 
0.56

 
0.57

 
7

 
2.38

 
2.14

 
11

Cash dividends declared
 
0.18

 
0.17

 
0.17

 
0.16

 
0.16

 
13

 
0.68

 
0.58

 
17

Book value
 
20.53

 
20.16

 
19.65

 
18.93

 
18.24

 
13

 
20.53

 
18.24

 
13

Tangible book value (3)
 
16.28

 
15.90

 
15.38

 
14.93

 
14.24

 
14

 
16.28

 
14.24

 
14

Key performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity - GAAP (2)(4)
 
12.07
%
 
12.16
%
 
11.45
%
 
11.85
%
 
12.08
%
 
 
 
11.89
%
 
11.60
%
 
 
Return on common equity - operating (1)(2)(4)
 
12.06

 
12.67

 
12.27

 
12.00

 
12.25

 
 
 
12.25

 
12.01

 
 
Return on tangible common equity - operating (1)(2)(3)(4)
 
15.49

 
16.38

 
15.88

 
15.46

 
15.88

 
 
 
15.81

 
15.69

 
 
Return on assets - GAAP (4)
 
1.50

 
1.51

 
1.40

 
1.44

 
1.43

 
 
 
1.46

 
1.35

 
 
Return on assets - operating (1)(4)
 
1.50

 
1.58

 
1.50

 
1.45

 
1.45

 
 
 
1.51

 
1.40

 
 
Net interest margin (fully taxable equivalent) (4)
 
3.93

 
4.12

 
4.12

 
4.10

 
3.97

 
 
 
4.07

 
3.91

 
 
Efficiency ratio - GAAP
 
54.87

 
55.64

 
57.28

 
55.32

 
56.73

 
 
 
55.77

 
57.31

 
 
Efficiency ratio - operating (1)
 
54.92

 
53.90

 
54.42

 
54.78

 
55.83

 
 
 
54.50

 
55.94

 
 
Equity to total assets
 
12.66

 
12.53

 
12.25

 
12.06

 
11.59

 
 
 
12.66

 
11.59

 
 
Tangible common equity to tangible assets (3)
 
10.32

 
10.16

 
9.86

 
9.76

 
9.29

 
 
 
10.32

 
9.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans
 
$
35,341

 
$
30,832

 
$
26,597

 
$
23,624

 
$
23,778

 
49

 
$
35,341

 
$
23,778

 
49

Foreclosed properties
 
476

 
102

 
75

 
1,127

 
1,305

 
(64
)
 
476

 
1,305

 
(64
)
Total nonperforming assets (“NPAs”)
 
35,817

 
30,934

 
26,672

 
24,751

 
25,083

 
43

 
35,817

 
25,083

 
43

Allowance for loan losses
 
62,089

 
62,514

 
62,204

 
61,642

 
61,203

 
1

 
62,089

 
61,203

 
1

Net charge-offs
 
3,925

 
2,723

 
2,438

 
3,130

 
1,787

 
120

 
12,216

 
6,113

 
100

Allowance for loan losses to loans
 
0.70
%
 
0.70
%
 
0.70
%
 
0.73
%
 
0.73
%
 
 
 
0.70
%
 
0.73
%
 
 
Net charge-offs to average loans (4)
 
0.18

 
0.12

 
0.11

 
0.15

 
0.09

 
 
 
0.14

 
0.07

 
 
NPAs to loans and foreclosed properties
 
0.41

 
0.35

 
0.30

 
0.29

 
0.30

 
 
 
0.41

 
0.30

 
 
NPAs to total assets
 
0.28

 
0.24

 
0.21

 
0.20

 
0.20

 
 
 
0.28

 
0.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES ($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
$
8,890

 
$
8,836

 
$
8,670

 
$
8,430

 
$
8,306

 
7

 
$
8,708

 
$
8,170

 
7

Investment securities
 
2,486

 
2,550

 
2,674

 
2,883

 
3,004

 
(17
)
 
2,647

 
2,899

 
(9
)
Earning assets
 
11,832

 
11,568

 
11,534

 
11,498

 
11,534

 
3

 
11,609

 
11,282

 
3

Total assets
 
12,946

 
12,681

 
12,608

 
12,509

 
12,505

 
4

 
12,687

 
12,284

 
3

Deposits
 
10,924

 
10,531

 
10,493

 
10,361

 
10,306

 
6

 
10,579

 
10,000

 
6

Shareholders’ equity
 
1,623

 
1,588

 
1,531

 
1,478

 
1,420

 
14

 
1,556

 
1,380

 
13

Common shares - basic (thousands)
 
79,659

 
79,663

 
79,673

 
79,807

 
79,884

 

 
79,700

 
79,662

 

Common shares - diluted (thousands)
 
79,669

 
79,667

 
79,678

 
79,813

 
79,890

 

 
79,708

 
79,671

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AT PERIOD END ($ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
$
8,813

 
$
8,903

 
$
8,838

 
$
8,493

 
$
8,383

 
5

 
$
8,813

 
$
8,383

 
5

Investment securities
 
2,559

 
2,515

 
2,620

 
2,720

 
2,903

 
(12
)
 
2,559

 
2,903

 
(12
)
Total assets
 
12,916

 
12,809

 
12,779

 
12,506

 
12,573

 
3

 
12,916

 
12,573

 
3

Deposits
 
10,897

 
10,757

 
10,591

 
10,534

 
10,535

 
3

 
10,897

 
10,535

 
3

Shareholders’ equity
 
1,636

 
1,605

 
1,566

 
1,508

 
1,458

 
12

 
1,636

 
1,458

 
12

Common shares outstanding (thousands)
 
79,014

 
78,974

 
79,075

 
79,035

 
79,234

 

 
79,014

 
79,234

 


(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



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
 
 
Selected Financial Information
 
 
 
 
 
 
 
 
 
 
For the Years Ended December 31,
 
 
 
 
 
 
 
 
 
 
(in thousands, except per share data)
 
2019
 
2018
 
2017
 
2016
 
2015
INCOME SUMMARY
 
 
 
 
 
 
 
 
 
 
Interest revenue
 
$
552,706

 
$
500,080

 
$
389,720

 
$
335,020

 
$
278,532

Interest expense
 
83,312

 
61,330

 
33,735

 
25,236

 
21,109

Net interest revenue
 
469,394

 
438,750

 
355,985

 
309,784

 
257,423

Provision for credit losses
 
13,150

 
9,500

 
3,800

 
(800
)
 
3,700

Noninterest income
 
104,713

 
92,961

 
88,260

 
93,697

 
72,529

Total revenue
 
560,957

 
522,211

 
440,445

 
404,281

 
326,252

Expenses
 
322,245

 
306,285

 
267,611

 
241,289

 
211,238

Income before income tax expense
 
238,712

 
215,926

 
172,834

 
162,992

 
115,014

Income tax expense
 
52,991

 
49,815

 
105,013

 
62,336

 
43,436

Net income
 
185,721

 
166,111

 
67,821

 
100,656

 
71,578

Merger-related and other charges
 
7,357

 
7,345

 
14,662

 
8,122

 
17,995

Income tax benefit of merger-related and other charges
 
(1,695
)
 
(1,494
)
 
(3,745
)
 
(3,074
)
 
(6,388
)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act
 

 

 
38,199

 

 

Impairment of deferred tax asset on cancelled non-qualified stock options
 

 

 

 
976

 

Release of disproportionate tax effects lodged in OCI
 

 

 
3,400

 

 

Net income - operating (1)
 
$
191,383

 
$
171,962

 
$
120,337

 
$
106,680

 
$
83,185

PERFORMANCE MEASURES
 
 
 
 
 
 
 
 
 
 
Per common share:
 
 
 
 
 
 
 
 
 
 
Diluted net income - GAAP
 
$
2.31

 
$
2.07

 
$
0.92

 
$
1.40

 
$
1.09

Diluted net income - operating (1)
 
2.38

 
2.14

 
1.63

 
1.48

 
1.27

Cash dividends declared
 
0.68

 
0.58

 
0.38

 
0.30

 
0.22

Book value
 
20.53

 
18.24

 
16.67

 
15.06

 
14.02

Tangible book value (3)
 
16.28

 
14.24

 
13.65

 
12.95

 
12.06

Key performance ratios:
 
 
 
 
 
 
 
 
 
 
Return on common equity - GAAP (2)
 
11.89
%
 
11.60
%
 
5.67
%
 
9.41
%
 
8.15
%
Return on common equity - operating (1)(2)
 
12.25

 
12.01

 
10.07

 
9.98

 
9.48

Return on tangible common equity - operating (1)(2)(3)
 
15.81

 
15.69

 
12.02

 
11.86

 
10.24

Return on assets - GAAP
 
1.46

 
1.35

 
0.62

 
1.00

 
0.85

Return on assets - operating (1)
 
1.51

 
1.40

 
1.09

 
1.06

 
0.98

Net interest margin (fully taxable equivalent)
 
4.07

 
3.91

 
3.52

 
3.36

 
3.30

Efficiency ratio - GAAP
 
55.77

 
57.31

 
59.95

 
59.80

 
63.96

Efficiency ratio - operating (1)
 
54.50

 
55.94

 
56.67

 
57.78

 
58.51

Equity to total assets
 
12.66

 
11.59

 
10.94

 
10.05

 
10.58

Tangible common equity to tangible assets (3)
 
10.32

 
9.29

 
9.14

 
8.77

 
9.15

 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY
 
 
 
 
 
 
 
 
 
 
Nonperforming loans
 
$
35,341

 
$
23,778

 
$
23,658

 
$
21,539

 
$
22,653

Foreclosed properties
 
476

 
1,305

 
3,234

 
7,949

 
4,883

Total nonperforming assets (NPAs)
 
35,817

 
25,083

 
26,892

 
29,488

 
27,536

Allowance for loan losses
 
62,089

 
61,203

 
58,914

 
61,422

 
68,448

Net charge-offs
 
12,216

 
6,113

 
5,998

 
6,766

 
6,259

Allowance for loan losses to loans
 
0.70
%
 
0.73
%
 
0.76
%
 
0.89
%
 
1.14
%
Net charge-offs to average loans
 
0.14

 
0.07

 
0.08

 
0.11

 
0.12

NPAs to loans and foreclosed properties
 
0.41

 
0.30

 
0.35

 
0.43

 
0.46

NPAs to total assets
 
0.28

 
0.20

 
0.23

 
0.28

 
0.29

AVERAGE BALANCES ($ in millions)
 
 
 
 
 
 
 
 
 
 
Loans
 
$
8,708

 
$
8,170

 
$
7,150

 
$
6,413

 
$
5,298

Investment securities
 
2,647

 
2,899

 
2,847

 
2,691

 
2,368

Earning assets
 
11,609

 
11,282

 
10,162

 
9,257

 
7,834

Total assets
 
12,687

 
12,284

 
11,015

 
10,054

 
8,462

Deposits
 
10,579

 
10,000

 
8,950

 
8,177

 
7,055

Shareholders’ equity
 
1,556

 
1,380

 
1,180

 
1,059

 
869

Common shares - basic (thousands)
 
79,700

 
79,662

 
73,247

 
71,910

 
65,488

Common shares - diluted (thousands)
 
79,708

 
79,671

 
73,259

 
71,915

 
65,492

AT PERIOD END ($ in millions)
 
 
 
 
 
 
 
 
 
 
Loans
 
$
8,813

 
$
8,383

 
$
7,736

 
$
6,921

 
$
5,995

Investment securities
 
2,559

 
2,903

 
2,937

 
2,762

 
2,656

Total assets
 
12,916

 
12,573

 
11,915

 
10,709

 
9,616

Deposits
 
10,897

 
10,535

 
9,808

 
8,638

 
7,873

Shareholders’ equity
 
1,636

 
1,458

 
1,303

 
1,076

 
1,018

Common shares outstanding (thousands)
 
79,014

 
79,234

 
77,580

 
70,899

 
71,484


(1) Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United’s deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property. (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.


6



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
 
 
Non-GAAP Performance Measures Reconciliation
 
 
 
 
 
 
 
 
 
 
Selected Financial Information- Quarterly
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
(in thousands, except per share data)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First
 Quarter
 
Fourth Quarter
 
 
 
 
 
 
 
 
 
 
 
Expense reconciliation
 
 
 
 

 
 

 
 

 
 

Expenses (GAAP)
 
$
81,424

 
$
82,924

 
$
81,813

 
$
76,084

 
$
78,242

Merger-related and other charges
 
74

 
(2,605
)
 
(4,087
)
 
(739
)
 
(1,234
)
Expenses - operating
 
$
81,498

 
$
80,319

 
$
77,726

 
$
75,345

 
$
77,008

 
 
 
 
 
 
 
 
 
 
 
Net income reconciliation
 
 
 
 
 
 
 
 
 
 
Net income (GAAP)
 
$
49,012

 
$
48,362

 
$
44,085

 
$
44,262

 
$
45,137

Merger-related and other charges
 
(74
)
 
2,605

 
4,087

 
739

 
1,234

Income tax benefit of merger-related and other charges
 
17

 
(600
)
 
(940
)
 
(172
)
 
(604
)
Net income - operating
 
$
48,955

 
$
50,367

 
$
47,232

 
$
44,829

 
$
45,767

 
 
 
 
 
 
 
 
 
 
 
Diluted income per common share reconciliation
 
 
 
 
 
 
 
 
 
 
Diluted income per common share (GAAP)
 
$
0.61

 
$
0.60

 
$
0.55

 
$
0.55

 
$
0.56

Merger-related and other charges
 

 
0.03

 
0.04

 
0.01

 
0.01

Diluted income per common share - operating
 
$
0.61

 
$
0.63

 
$
0.59

 
$
0.56

 
$
0.57

 
 
 
 
 
 
 
 
 
 
 
Book value per common share reconciliation
 
 
 
 
 
 
 
 
 
 
Book value per common share (GAAP)
 
$
20.53

 
$
20.16

 
$
19.65

 
$
18.93

 
$
18.24

Effect of goodwill and other intangibles
 
(4.25
)
 
(4.26
)
 
(4.27
)
 
(4.00
)
 
(4.00
)
Tangible book value per common share
 
$
16.28

 
$
15.90

 
$
15.38

 
$
14.93

 
$
14.24

 
 
 
 
 
 
 
 
 
 
 
Return on tangible common equity reconciliation
 
 
 
 
 
 
 
 
 
 
Return on common equity (GAAP)
 
12.07
 %
 
12.16
 %
 
11.45
 %
 
11.85
 %
 
12.08
 %
Merger-related and other charges
 
(0.01
)
 
0.51

 
0.82

 
0.15

 
0.17

Return on common equity - operating
 
12.06

 
12.67

 
12.27

 
12.00

 
12.25

Effect of goodwill and other intangibles
 
3.43

 
3.71

 
3.61

 
3.46

 
3.63

Return on tangible common equity - operating
 
15.49
 %
 
16.38
 %
 
15.88
 %
 
15.46
 %
 
15.88
 %
 
 
 
 
 
 
 
 
 
 
 
Return on assets reconciliation
 
 
 
 
 
 
 
 
 
 
Return on assets (GAAP)
 
1.50
 %
 
1.51
 %
 
1.40
 %
 
1.44
 %
 
1.43
 %
Merger-related and other charges
 

 
0.07

 
0.10

 
0.01

 
0.02

Return on assets - operating
 
1.50
 %
 
1.58
 %
 
1.50
 %
 
1.45
 %
 
1.45
 %
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio reconciliation
 
 
 
 
 
 
 
 
 
 
Efficiency ratio (GAAP)
 
54.87
 %
 
55.64
 %
 
57.28
 %
 
55.32
 %
 
56.73
 %
Merger-related and other charges
 
0.05

 
(1.74
)
 
(2.86
)
 
(0.54
)
 
(0.90
)
Efficiency ratio - operating
 
54.92
 %
 
53.90
 %
 
54.42
 %
 
54.78
 %
 
55.83
 %
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity to tangible assets reconciliation
 
 
 
 
 
 
 
 
 
 
Equity to total assets (GAAP)
 
12.66
 %
 
12.53
 %
 
12.25
 %
 
12.06
 %
 
11.59
 %
Effect of goodwill and other intangibles
 
(2.34
)
 
(2.37
)
 
(2.39
)
 
(2.30
)
 
(2.30
)
Tangible common equity to tangible assets
 
10.32
 %
 
10.16
 %
 
9.86
 %
 
9.76
 %
 
9.29
 %


7



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
 
 
Non-GAAP Performance Measures Reconciliation
 
 
 
 
 
 
 
 
 
 
Selected Financial Information- Annual
 
 
 
 
 
 
 
 
 
 
 
 
For the Twelve Months Ended December 31,
(in thousands, except per share data)
 
2019
 
2018
 
2017
 
2016
 
2015
Expense reconciliation
 
 
 
 
 
 
 
 
 
 
Expenses (GAAP)
 
$
322,245

 
$
306,285

 
$
267,611

 
$
241,289

 
$
211,238

Merger-related and other charges
 
(7,357
)
 
(7,345
)
 
(14,662
)
 
(8,122
)
 
(17,995
)
Expenses - operating
 
$
314,888

 
$
298,940

 
$
252,949

 
$
233,167

 
$
193,243

 
 
 
 
 
 
 
 
 
 
 
Net income reconciliation
 
 
 
 
 
 
 
 
 
 
Net income (GAAP)
 
$
185,721

 
$
166,111

 
$
67,821

 
$
100,656

 
$
71,578

Merger-related and other charges
 
7,357

 
7,345

 
14,662

 
8,122

 
17,995

Income tax benefit of merger-related and other charges
 
(1,695
)
 
(1,494
)
 
(3,745
)
 
(3,074
)
 
(6,388
)
Impact of tax reform on remeasurement of deferred tax asset
 

 

 
38,199

 

 

Impairment of deferred tax asset on canceled non-qualified stock options
 

 

 

 
976

 

Release of disproportionate tax effects lodged in OCI
 

 

 
3,400

 

 

Net income - operating
 
$
191,383

 
$
171,962

 
$
120,337

 
$
106,680

 
$
83,185

 
 
 
 
 
 
 
 
 
 
 
Diluted income per common share reconciliation
 
 
 
 
 
 
 
 
 
 
Diluted income per common share (GAAP)
 
$
2.31

 
$
2.07

 
$
0.92

 
$
1.40

 
$
1.09

Merger-related and other charges
 
0.07

 
0.07

 
0.14

 
0.07

 
0.18

Impact of tax reform on remeasurement of deferred tax asset
 

 

 
0.52

 

 

Impairment of deferred tax asset on canceled non-qualified stock options
 

 

 

 
0.01

 

Release of disproportionate tax effects lodged in OCI
 

 

 
0.05

 

 

Diluted income per common share - operating
 
$
2.38

 
$
2.14

 
$
1.63

 
$
1.48

 
$
1.27

 
 
 
 
 
 
 
 
 
 
 
Book value per common share reconciliation
 
 
 
 
 
 
 
 
 
 
Book value per common share (GAAP)
 
$
20.53

 
$
18.24

 
$
16.67

 
$
15.06

 
$
14.02

Effect of goodwill and other intangibles
 
(4.25
)
 
(4.00
)
 
(3.02
)
 
(2.11
)
 
(1.96
)
Tangible book value per common share
 
$
16.28

 
$
14.24

 
$
13.65

 
$
12.95

 
$
12.06

 
 
 
 
 
 
 
 
 
 
 
Return on tangible common equity reconciliation
 
 
 
 
 
 
 
 
 
 
Return on common equity (GAAP)
 
11.89
 %
 
11.60
 %
 
5.67
 %
 
9.41
 %
 
8.15
 %
Merger-related and other charges
 
0.36

 
0.41

 
0.92

 
0.48

 
1.33

Impact of tax reform on remeasurement of deferred tax asset
 

 

 
3.20

 

 

Impairment of deferred tax asset on canceled non-qualified stock options
 

 

 

 
0.09

 

Release of disproportionate tax effects lodged in OCI
 

 

 
0.28

 

 

Return on common equity - operating
 
12.25

 
12.01

 
10.07

 
9.98

 
9.48

Effect of goodwill and other intangibles
 
3.56

 
3.68

 
1.95

 
1.88

 
0.76

Return on tangible common equity - operating
 
15.81
 %
 
15.69
 %
 
12.02
 %
 
11.86
 %
 
10.24
 %
 
 
 
 
 
 
 
 
 
 
 
Return on assets reconciliation
 
 
 
 
 
 
 
 
 
 
Return on assets (GAAP)
 
1.46
 %
 
1.35
 %
 
0.62
 %
 
1.00
 %
 
0.85
 %
Merger-related and other charges
 
0.05

 
0.05

 
0.09

 
0.05

 
0.13

Impact of tax reform on remeasurement of deferred tax asset
 

 

 
0.35

 

 

Impairment of deferred tax asset on canceled non-qualified stock options
 

 

 

 
0.01

 

Release of disproportionate tax effects lodged in OCI
 

 

 
0.03

 

 

Return on assets - operating
 
1.51
 %
 
1.40
 %
 
1.09
 %
 
1.06
 %
 
0.98
 %
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio reconciliation
 
 
 
 
 
 
 
 
 
 
Efficiency ratio (GAAP)
 
55.77
 %
 
57.31
 %
 
59.95
 %
 
59.80
 %
 
63.96
 %
Merger-related and other charges
 
(1.27
)
 
(1.37
)
 
(3.28
)
 
(2.02
)
 
(5.45
)
Efficiency ratio - operating
 
54.50
 %
 
55.94
 %
 
56.67
 %
 
57.78
 %
 
58.51
 %
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity to tangible assets reconciliation
 
 
 
 
 
 
 
 
 
 
Equity to total assets (GAAP)
 
12.66
 %
 
11.59
 %
 
10.94
 %
 
10.05
 %
 
10.58
 %
Effect of goodwill and other intangibles
 
(2.34
)
 
(2.30
)
 
(1.80
)
 
(1.28
)
 
(1.33
)
Effect of preferred equity
 

 

 

 

 
(0.10
)
Tangible common equity to tangible assets
 
10.32
 %
 
9.29
 %
 
9.14
 %
 
8.77
 %
 
9.15
 %


8



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
 
 
 
 
Financial Highlights
 
 
 
 
 
 
 
 
 
 
 
 
Loan Portfolio Composition at Period-End
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
Linked Quarter Change
 
Year over Year Change
(in millions)
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
 
LOANS BY CATEGORY
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied commercial RE
$
1,720

 
$
1,692

 
$
1,658

 
$
1,620

 
$
1,648

 
$
28

 
$
72

Income producing commercial RE
2,008

 
1,934

 
1,939

 
1,867

 
1,812

 
74

 
196

Commercial & industrial
1,221

 
1,271

 
1,299

 
1,284

 
1,278

 
(50
)
 
(57
)
Commercial construction
976

 
1,001

 
983

 
866

 
796

 
(25
)
 
180

Equipment financing
745

 
729

 
674

 
606

 
565

 
16

 
180

     Total commercial
6,670

 
6,627

 
6,553

 
6,243

 
6,099

 
43

 
571

Residential mortgage
1,118

 
1,121

 
1,108

 
1,064

 
1,049

 
(3
)
 
69

Home equity lines of credit
661

 
669

 
675

 
684

 
694

 
(8
)
 
(33
)
Residential construction
236

 
229

 
219

 
200

 
211

 
7

 
25

Consumer
128

 
257

 
283

 
302

 
330

 
(129
)
 
(202
)
     Total loans
$
8,813

 
$
8,903

 
$
8,838

 
$
8,493

 
$
8,383

 
$
(90
)
 
$
430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LOANS BY MARKET
 
 
 
 
 
 
 
 
 
 
 
 
 
North Georgia
$
967

 
$
1,002

 
$
1,002

 
$
970

 
$
981

 
$
(35
)
 
$
(14
)
Atlanta
1,762

 
1,740

 
1,745

 
1,524

 
1,507

 
22

 
255

North Carolina
1,156

 
1,117

 
1,084

 
1,074

 
1,072

 
39

 
84

Coastal Georgia
631

 
611

 
604

 
603

 
588

 
20

 
43

Gainesville
246

 
246

 
244

 
243

 
247

 

 
(1
)
East Tennessee
421

 
435

 
446

 
458

 
477

 
(14
)
 
(56
)
South Carolina
1,708

 
1,705

 
1,674

 
1,674

 
1,645

 
3

 
63

Commercial Banking Solutions
1,922

 
1,916

 
1,884

 
1,766

 
1,658

 
6

 
264

Indirect auto

 
131

 
155

 
181

 
208

 
(131
)
 
(208
)
     Total loans
$
8,813

 
$
8,903

 
$
8,838

 
$
8,493

 
$
8,383

 
$
(90
)
 
$
430



9



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
 
 
Financial Highlights
 
 
 
 
 
 
 
 
Loan Portfolio Composition at Year-End
 
 
 
 
 
 
 
 
(in millions)
2019
 
2018
 
2017
 
2016
 
2015
LOANS BY CATEGORY
 
 
 
 
 
 
 
 
 
Owner occupied commercial RE
$
1,720

 
$
1,648

 
$
1,924

 
$
1,650

 
$
1,571

Income producing commercial RE
2,008

 
1,812

 
1,595

 
1,282

 
1,021

Commercial & industrial
1,221

 
1,278

 
1,131

 
1,070

 
785

Commercial construction
976

 
796

 
712

 
634

 
518

Equipment financing
745

 
565

 

 

 

     Total commercial
6,670

 
6,099

 
5,362

 
4,636

 
3,895

Residential mortgage
1,118

 
1,049

 
974

 
857

 
764

Home equity lines of credit
661

 
694

 
731

 
655

 
589

Residential construction
236

 
211

 
183

 
190

 
176

Consumer
128

 
330

 
486

 
583

 
571

     Total loans
$
8,813

 
$
8,383

 
$
7,736

 
$
6,921

 
$
5,995

 
 
 
 
 
 
 
 
 
 
LOANS BY MARKET
 
 
 
 
 
 
 
 
 
North Georgia
$
967

 
$
981

 
$
1,019

 
$
1,097

 
$
1,125

Atlanta
1,762

 
1,507

 
1,510

 
1,399

 
1,259

North Carolina
1,156

 
1,072

 
1,049

 
545

 
549

Coastal Georgia
631

 
588

 
630

 
581

 
537

Gainesville
246

 
247

 
248

 
248

 
254

East Tennessee
421

 
477

 
475

 
504

 
504

South Carolina
1,708

 
1,645

 
1,486

 
1,233

 
819

Commercial Banking Solutions
1,922

 
1,658

 
961

 
855

 
492

Indirect auto

 
208

 
358

 
459

 
456

     Total loans
$
8,813

 
$
8,383

 
$
7,736

 
$
6,921

 
$
5,995



10



UNITED COMMUNITY BANKS, INC.
 
 
 
 
 
 
Financial Highlights
 
 
 
 
 
 
Credit Quality
 
 
 
 
 
 
 
 
2019
(in thousands)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
NONACCRUAL LOANS
 
 
 
 
 
 
Owner occupied RE
 
$
10,544

 
$
8,430

 
$
8,177

Income producing RE
 
1,996

 
2,030

 
1,331

Commercial & industrial
 
2,545

 
2,625

 
2,366

Commercial construction
 
2,277

 
1,894

 
1,650

Equipment financing
 
3,141

 
1,974

 
2,047

Total commercial
 
20,503

 
16,953

 
15,571

Residential mortgage
 
10,567

 
9,475

 
8,012

Home equity lines of credit
 
3,173

 
3,065

 
1,978

Residential construction
 
939

 
597

 
494

Consumer
 
159

 
742

 
542

Total
 
$
35,341

 
$
30,832

 
$
26,597

 
 
2019
 
 
Fourth Quarter
 
Third Quarter
 
Second 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
 
$
(208
)
 
(0.05
)%
 
$
(39
)
 
(0.01
)%
 
$
(58
)
 
(0.01
)%
Income producing RE
 
95

 
0.02

 
431

 
0.09

 
241

 
0.05

Commercial & industrial
 
1,809

 
0.58

 
691

 
0.21

 
1,141

 
0.35

Commercial construction
 
(140
)
 
(0.06
)
 
(247
)
 
(0.10
)
 
(162
)
 
(0.07
)
Equipment financing
 
1,550

 
0.84

 
1,174

 
0.67

 
890

 
0.56

Total commercial
 
3,106

 
0.19

 
2,010

 
0.12

 
2,052

 
0.13

Residential mortgage
 
89

 
0.03

 
158

 
0.06

 
(125
)
 
(0.05
)
Home equity lines of credit
 
198

 
0.12

 
83

 
0.05

 
(111
)
 
(0.07
)
Residential construction
 
(24
)
 
(0.04
)
 
(5
)
 
(0.01
)
 
199

 
0.38

Consumer
 
556

 
0.90

 
477

 
0.70

 
423

 
0.58

Total
 
$
3,925

 
0.18

 
$
2,723

 
0.12

 
$
2,438

 
0.11

 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  Annualized.
 
 
 
 
 
 
 
 
 
 
 
 


11



UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
 
December 31, 2019
 
December 31, 2018
ASSETS
 
 
 
 
Cash and due from banks
 
$
125,844

 
$
126,083

Interest-bearing deposits in banks
 
389,362

 
201,182

Cash and cash equivalents
 
515,206

 
327,265

Debt securities available-for-sale
 
2,274,581

 
2,628,467

Debt securities held-to-maturity (fair value $287,904 and $268,803)
 
283,533

 
274,407

Loans held for sale, at fair value
 
58,484

 
18,935

Loans, net of unearned income
 
8,812,553

 
8,383,401

Less allowance for loan losses
 
(62,089
)
 
(61,203
)
Loans, net
 
8,750,464

 
8,322,198

Premises and equipment, net
 
215,976

 
206,140

Bank owned life insurance
 
202,664

 
192,616

Accrued interest receivable
 
32,660

 
35,413

Net deferred tax asset
 
34,059

 
64,224

Derivative financial instruments
 
35,007

 
24,705

Goodwill and other intangible assets
 
342,247

 
324,072

Other assets
 
171,135

 
154,750

Total assets
 
$
12,916,016

 
$
12,573,192

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Deposits:
 
 
 
 
Noninterest-bearing demand
 
$
3,477,979

 
$
3,210,220

NOW and interest-bearing demand
 
2,461,895

 
2,369,631

Money market
 
2,230,628

 
2,002,670

Savings
 
706,467

 
669,886

Time
 
1,859,574

 
1,598,391

Brokered
 
160,701

 
683,715

Total deposits
 
10,897,244

 
10,534,513

Federal Home Loan Bank advances
 

 
160,000

Long-term debt
 
212,664

 
267,189

Derivative financial instruments
 
15,516

 
26,433

Accrued expenses and other liabilities
 
154,900

 
127,503

Total liabilities
 
11,280,324

 
11,115,638

Shareholders' equity:
 
 
 
 
Common stock, $1 par value; 150,000,000 shares authorized;
79,013,729 and 79,234,077 shares issued and outstanding
 
79,014

 
79,234

Common stock issuable; 664,640 and 674,499 shares
 
11,491

 
10,744

Capital surplus
 
1,496,641

 
1,499,584

Retained earnings (accumulated deficit)
 
40,152

 
(90,419
)
Accumulated other comprehensive income (loss)
 
8,394

 
(41,589
)
Total shareholders’ equity
 
1,635,692

 
1,457,554

Total liabilities and shareholders’ equity
 
$
12,916,016

 
$
12,573,192



12



UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in thousands, except per share data)
 
2019
 
2018
 
2019
 
2018
Interest revenue:
 
 
 
 
 
 
 
 
Loans, including fees
 
$
118,464

 
$
112,087

 
$
476,039

 
$
420,383

Investment securities, including tax exempt of $1,155 and $1,140, and $4,564 and $4,189
 
16,846

 
21,237

 
74,484

 
77,685

Deposits in banks and short-term investments
 
1,109

 
530

 
2,183

 
2,012

Total interest revenue
 
136,419

 
133,854

 
552,706

 
500,080

 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
NOW and interest-bearing demand
 
3,382

 
3,166

 
13,665

 
7,649

Money market
 
4,883

 
3,985

 
18,983

 
11,838

Savings
 
34

 
33

 
149

 
150

Time
 
8,372

 
7,006

 
34,059

 
19,906

Deposits
 
16,671

 
14,190

 
66,856

 
39,543

Short-term borrowings
 

 
340

 
838

 
1,112

Federal Home Loan Bank advances
 
2

 
794

 
2,697

 
6,345

Long-term debt
 
3,108

 
3,651

 
12,921

 
14,330

Total interest expense
 
19,781

 
18,975

 
83,312

 
61,330

Net interest revenue
 
116,638

 
114,879

 
469,394

 
438,750

Provision for credit losses
 
3,500

 
2,100

 
13,150

 
9,500

Net interest revenue after provision for credit losses
 
113,138

 
112,779

 
456,244

 
429,250

 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
9,368

 
9,166

 
36,797

 
35,997

Mortgage loan gains and related fees
 
9,395

 
3,082

 
27,145

 
19,010

Brokerage fees
 
1,526

 
1,593

 
6,150

 
5,191

Gains from other loan sales, net
 
2,455

 
2,493

 
6,867

 
9,277

Securities (losses) gains, net
 
(903
)
 
646

 
(1,021
)
 
(656
)
Other
 
8,342

 
6,065

 
28,775

 
24,142

Total noninterest income
 
30,183

 
23,045

 
104,713

 
92,961

Total revenue
 
143,321

 
135,824

 
560,957

 
522,211

 
 
 
 
 
 
 
 
 
Noninterest expenses:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
50,279

 
45,631

 
196,440

 
181,015

Occupancy
 
5,926

 
5,842

 
23,350

 
22,781

Communications and equipment
 
6,380

 
6,206

 
24,613

 
21,277

FDIC assessments and other regulatory charges
 
1,330

 
1,814

 
4,901

 
8,491

Professional fees
 
5,098

 
4,105

 
17,028

 
15,540

Postage, printing and supplies
 
1,637

 
1,520

 
6,370

 
6,416

Advertising and public relations
 
1,914

 
1,650

 
6,170

 
5,991

Amortization of intangibles
 
1,093

 
1,420

 
4,938

 
6,846

Merger-related and other charges
 
(74
)
 
965

 
6,907

 
5,414

Other
 
7,841

 
9,089

 
31,528

 
32,514

Total noninterest expenses
 
81,424

 
78,242

 
322,245

 
306,285

Net income before income taxes
 
61,897

 
57,582

 
238,712

 
215,926

Income tax expense
 
12,885

 
12,445

 
52,991

 
49,815

Net income
 
$
49,012

 
$
45,137

 
$
185,721

 
$
166,111

 
 
 
 
 
 
 
 
 
Net income available to common shareholders
 
$
48,617

 
$
44,801

 
$
184,346

 
$
164,927

 
 
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.61

 
$
0.56

 
$
2.31

 
$
2.07

Diluted
 
0.61

 
0.56

 
2.31

 
2.07

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
79,659

 
79,884

 
79,700

 
79,662

Diluted
 
79,669

 
79,890

 
79,708

 
79,671



13



Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
 
 
2019
 
2018
(dollars in thousands, fully taxable equivalent (FTE))
 
Average Balance
 
Interest
 
Average Rate
 
Average Balance
 
Interest
 
Average Rate
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income (FTE) (1)(2)
 
$
8,890,272

 
$
118,262

 
5.28
%
 
$
8,306,270

 
$
112,020

 
5.35
%
Taxable securities (3)
 
2,306,065

 
15,691

 
2.72

 
2,843,085

 
20,097

 
2.83

Tax-exempt securities (FTE) (1)(3)
 
179,744

 
1,551

 
3.45

 
161,284

 
1,535

 
3.81

Federal funds sold and other interest-earning assets
 
456,055

 
1,586

 
1.39

 
222,931

 
845

 
1.52

Total interest-earning assets (FTE)
 
11,832,136

 
137,090

 
4.60

 
11,533,570

 
134,497

 
4.63

 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
(63,601
)
 
 
 
 
 
(61,992
)
 
 
 
 
Cash and due from banks
 
120,936

 
 
 
 
 
125,066

 
 
 
 
Premises and equipment
 
219,487

 
 
 
 
 
214,590

 
 
 
 
Other assets (3)
 
836,586

 
 
 
 
 
694,215

 
 
 
 
Total assets
 
$
12,945,544

 
 
 
 
 
$
12,505,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
NOW and interest-bearing demand
 
$
2,398,396

 
3,382

 
0.56

 
$
2,134,828

 
3,166

 
0.59

Money market
 
2,321,352

 
4,883

 
0.83

 
2,126,840

 
3,985

 
0.74

Savings
 
704,454

 
34

 
0.02

 
675,265

 
33

 
0.02

Time
 
1,880,174

 
7,975

 
1.68

 
1,584,011

 
4,297

 
1.08

Brokered time deposits
 
85,781

 
397

 
1.84

 
490,748

 
2,709

 
2.19

Total interest-bearing deposits
 
7,390,157

 
16,671

 
0.89

 
7,011,692

 
14,190

 
0.80

Federal funds purchased and other borrowings
 

 

 

 
55,095

 
340

 
2.45

Federal Home Loan Bank advances
 
435

 
2

 
1.82

 
140,869

 
794

 
2.24

Long-term debt
 
232,726

 
3,108

 
5.30

 
272,313

 
3,651

 
5.32

Total borrowed funds
 
233,161

 
3,110

 
5.29

 
468,277

 
4,785

 
4.05

Total interest-bearing liabilities
 
7,623,318

 
19,781

 
1.03

 
7,479,969

 
18,975

 
1.01

 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
3,533,746

 
 
 
 
 
3,294,385

 
 
 
 
Other liabilities
 
165,148

 
 
 
 
 
311,461

 
 
 
 
Total liabilities
 
11,322,212

 
 
 
 
 
11,085,815

 
 
 
 
Shareholders’ equity
 
1,623,332

 
 
 
 
 
1,419,634

 
 
 
 
Total liabilities and shareholders’ equity
 
$
12,945,544

 
 
 
 
 
$
12,505,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest revenue (FTE)
 
 
 
$
117,309

 
 
 
 
 
$
115,522

 
 
Net interest-rate spread (FTE)
 
 
 
 
 
3.57
%
 
 
 
 
 
3.62
%
Net interest margin (FTE) (4)
 
 
 
 
 
3.93
%
 
 
 
 
 
3.97
%
 
(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 $36.0 million in 2019 and unrealized losses of $59.5 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.


14



Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
 
 
2019
 
2018
(dollars in thousands, fully taxable equivalent (FTE))
 
Average Balance
 
Interest
 
Average Rate
 
Average Balance
 
Interest
 
Average Rate
Assets:
 
 

 
 

 
 

 
 

 
 

 
 

Interest-earning assets:
 
 

 
 

 
 

 
 

 
 

 
 

Loans, net of unearned income (FTE) (1)(2)
 
$
8,708,035

 
$
475,803

 
5.46
%
 
$
8,170,143

 
$
420,001

 
5.14
%
Taxable securities (3)
 
2,475,102

 
69,920

 
2.82

 
2,745,715

 
73,496

 
2.68

Tax-exempt securities (FTE) (1)(3)
 
171,549

 
6,130

 
3.57

 
152,855

 
5,641

 
3.69

Federal funds sold and other interest-earning assets
 
254,370

 
3,499

 
1.38

 
213,137

 
2,968

 
1.39

Total interest-earning assets (FTE)
 
11,609,056

 
555,352

 
4.78

 
11,281,850

 
502,106

 
4.45

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
(62,900
)
 
 
 
 
 
(61,443
)
 
 
 
 
Cash and due from banks
 
121,649

 
 
 
 
 
135,345

 
 
 
 
Premises and equipment
 
220,523

 
 
 
 
 
216,646

 
 
 
 
Other assets (3)
 
798,649

 
 
 
 
 
711,671

 
 
 
 
Total assets
 
$
12,686,977

 
 
 
 
 
$
12,284,069

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
NOW and interest-bearing demand
 
$
2,249,713

 
13,665

 
0.61

 
$
2,107,831

 
7,649

 
0.36

Money market
 
2,221,478

 
18,983

 
0.85

 
2,117,216

 
11,838

 
0.56

Savings
 
690,028

 
149

 
0.02

 
672,735

 
150

 
0.02

Time
 
1,791,319

 
28,313

 
1.58

 
1,547,221

 
12,585

 
0.81

Brokered time deposits
 
240,646

 
5,746

 
2.39

 
347,072

 
7,321

 
2.11

Total interest-bearing deposits
 
7,193,184

 
66,856

 
0.93

 
6,792,075

 
39,543

 
0.58

Federal funds purchased and other borrowings
 
33,504

 
838

 
2.50

 
57,376

 
1,112

 
1.94

Federal Home Loan Bank advances
 
106,973

 
2,697

 
2.52

 
328,871

 
6,345

 
1.93

Long-term debt
 
247,732

 
12,921

 
5.22

 
290,004

 
14,330

 
4.94

Total borrowed funds
 
388,209

 
16,456

 
4.24

 
676,251

 
21,787

 
3.22

Total interest-bearing liabilities
 
7,581,393

 
83,312

 
1.10

 
7,468,326

 
61,330

 
0.82

 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
3,385,431

 
 
 
 
 
3,207,625

 
 
 
 
Other liabilities
 
164,550

 
 
 
 
 
227,980

 
 
 
 
Total liabilities
 
11,131,374

 
 
 
 
 
10,903,931

 
 
 
 
Shareholders’ equity
 
1,555,603

 
 
 
 
 
1,380,138

 
 
 
 
Total liabilities and shareholders’ equity
 
$
12,686,977

 
 
 
 
 
$
12,284,069

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest revenue (FTE)
 
 
 
$
472,040

 
 
 
 
 
$
440,776

 
 
Net interest-rate spread (FTE)
 
 
 
 
 
3.68
%
 
 
 
 
 
3.63
%
Net interest margin (FTE) (4)
 
 
 
 
 
4.07
%
 
 
 
 
 
3.91
%
 
(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 $12.8 million in 2019 and unrealized losses of $45.2 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.


15



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 $12.9 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, 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 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.

# # #


16