GREENVILLE, S.C., Jan. 22, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, which reflected solid year-over-year loan and deposit growth, improving operating efficiency and continued strong asset quality. For the quarter, diluted earnings per share was $0.56 compared with a net loss of $0.16 per diluted share a year ago due to the impact of tax reform. Operating diluted earnings per share, which exclude merger-related and other charges, was $0.57, an increase of 36% over the previous year. Profitability ratios continued to be strong – United ended the year with a 1.43% return on assets and a 12.08% return on common equity. On an operating basis, return on assets was 1.45% and return on tangible common equity was 15.88%.

Other key banking metrics were strong. The fourth quarter saw continued net interest margin expansion and 8% annualized loan growth, the strongest growth quarter in 2018. Deposit growth reflected the strength of United’s community banking franchise – total customer deposits increased $173 million for the fourth quarter and $414 million for the year. Mortgage production grew by nearly 4% compared to the fourth quarter last year and increased 20% for the full year compared to 2017. United’s SBA business also had a strong year, with production up 12% over 2017.

“The fourth quarter was a strong finish to an outstanding year,” said Lynn Harton, Chief Executive Officer. “Our full year return on assets was up 31 basis points on an operating basis and our operating earnings per share was up 31% over 2017. These impressive results do not come easily and are attributed to the hard work of our bankers, who continue to deliver the best service in the business. We are very pleased that their efforts are being recognized. Forbes included United on their list of the top 100 Best Banks in America for the fifth consecutive year. Additionally, for the fifth straight year, we earned the top ranking for overall customer satisfaction by JD Power; our service was ranked as highest in the Southeast. We were also honored by our recognition in the 'Best Banks to Work For' program by American Banker for the second year in a row. This is a measure of employee satisfaction for all banks in the country, and we could not be more pleased by our team’s show of support for United. The strength of our culture and the strong momentum we see in the business gives me confidence that we will continue our strong performance into 2019 and continue to build long-term shareholder value.”

2018 Highlights:

  • 2018 earnings per diluted share was $2.07, a 125% increase over 2017, which included the impact of tax reform
    • Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was $2.14 compared to $1.63 in 2017, an increase of 31%
  • Return on average assets was 1.35% in 2018, an increase of 73 basis points from 2017
    • Excluding merger-related and other charges and the 2017 impact of tax reform, return on average assets was 1.40%, an increase of 31 basis points from 2017
  • Efficiency ratio of 57.31% in 2018 improved 264 basis points as compared to 2017
    • Excluding merger-related and other charges, efficiency ratio of 55.94% improved 73 basis points as compared to 2017
  • End of period loans grew $647 million in 2018, up 8% over December 31, 2017
  • Common Equity Tier 1 ratio was 12.2% at December 31, 2018, compared to 12.0% at December 31, 2017
  • Declared $0.58 per share in common dividends in 2018, up 53% over 2017
  • Completed the acquisition of Navitas Credit Corporation on February 1, 2018
  • Issued $100 million in subordinated debt in the first quarter and redeemed $7.4 million in high rate Trust Preferred securities in the fourth quarter
  • Completed our CEO transition plan, elevating H. Lynn Harton into the role as Jimmy Tallent retired into the Executive Chairman position
  • Added two new Board members, Jennifer Mann and Lance F. Drummond, adding significant experience and expertise to our oversight function

Fourth Quarter 2018 Financial Highlights:

  • Return on assets of 1.43%, or 1.45% excluding merger-related and other charges
  • Return on common equity of 12.1% or return on tangible common equity of 15.9%, which excludes merger-related and other charges
  • Loan growth, excluding planned runoff of the indirect portfolio, of 10% on an annualized basis
  • Loan production of $868 million, as compared to $644 million in the fourth quarter of 2017
  • Expansion of the net interest margin to 3.97%, up two basis points from the third quarter of 2018 and up 34 basis points from a year ago
  • Efficiency ratio of 56.73%, or 55.83% excluding merger-related and other charges
  • Net charge offs of nine basis points, consistent with last quarter’s result of seven basis points
  • Nonperforming assets of 0.20% of total assets, compared to 0.19% at September 30, 2018 and 0.23% at December 31, 2017

Conference Call

United will hold a conference call, Wednesday, January 23, 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 9381368.  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                           
                            
                 Fourth
  For the Twelve   
  2018
  2017  Quarter
  Months Ended YTD 
  Fourth   Third   Second   First   Fourth   2018-2017
  December 31, 2018-2017 
(in thousands, except per share data) Quarter  Quarter  Quarter  Quarter  Quarter   Change
  2018  2017  Change 
INCOME SUMMARY                           
Interest revenue$133,854  $128,721  $122,215  $115,290  $106,757     $500,080  $389,720     
Interest expense 18,975   16,611   13,739   12,005   9,249      61,330   33,735     
Net interest revenue 114,879   112,110   108,476   103,285   97,508   18 %438,750   355,985  23 % 
Provision for credit losses 2,100   1,800   1,800   3,800   1,200      9,500   3,800     
Noninterest income 23,045   24,180   23,340   22,396   21,928   5   92,961   88,260  5   
Total revenue 135,824   134,490   130,016   121,881   118,236   15   522,211   440,445  19   
Expenses 78,242   77,718   76,850   73,475   75,882   3   306,285   267,611  14   
Income before income tax expense 57,582   56,772   53,166   48,406   42,354   36   215,926   172,834  25   
Income tax expense 12,445   13,090   13,532   10,748   54,270      49,815   105,013     
Net income (loss) 45,137   43,682   39,634   37,658   (11,916)     166,111   67,821     
Merger-related and other charges 1,234   592   2,873   2,646   7,358      7,345   14,662     
Income tax benefit of merger-related and other charges (604)  (141)  (121)  (628)  (1,165)     (1,494)  (3,745)    
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act -   -   -   -   38,199      -   38,199     
Release of disproportionate tax effects lodged in OCI -   -   -   -   -      -   3,400     
Net income - operating (1)$  45,767   $  44,133   $  42,386   $  39,676   $  32,476    41  $  171,962   $  120,337     43    
                            
PERFORMANCE MEASURES                           
Per common share:                           
Diluted net income (loss) - GAAP$0.56  $0.54  $0.49  $0.47  $(0.16)    $2.07  $0.92     
Diluted net income - operating  (1) 0.57   0.55   0.53   0.50   0.42   36   2.14   1.63  31   
Cash dividends declared 0.16   0.15   0.15   0.12   0.10   60   0.58   0.38  53   
Book value 18.24   17.56   17.29   17.02   16.67   9   18.24   16.67  9   
Tangible book value (3) 14.24   13.54   13.25   12.96   13.65   4   14.24   13.65  4   
                            
Key performance ratios:                           
Return on common equity - GAAP (2)(4) 12.08 %11.96 %11.20 %11.11 %(3.57)%   11.60 % 5.67 %  
Return on common equity - operating (1)(2)(4) 12.25   12.09   11.97   11.71   9.73      12.01   10.07     
Return on tangible common equity - operating (1)(2)(3)(4) 15.88   15.81   15.79   15.26   11.93      15.69   12.02     
Return on assets - GAAP (4) 1.43   1.41   1.30   1.26   (0.40)     1.35   0.62     
Return on assets - operating (1)(4) 1.45   1.42   1.39   1.33   1.10      1.40   1.09     
Dividend payout ratio - GAAP 28.57   27.78   30.61   25.53   (62.50)     28.02   41.30     
Dividend payout ratio - operating (1) 28.07   27.27   28.30   24.00   23.81      27.10   23.31     
Net interest margin (fully taxable equivalent) (4) 3.97   3.95   3.90   3.80   3.63      3.91   3.52     
Efficiency ratio - GAAP 56.73   56.82   57.94   57.83   63.03      57.31   59.95     
Efficiency ratio - operating  (1) 55.83   56.39   55.77   55.75   56.92      55.94   56.67     
Average equity to average assets 11.35   11.33   11.21   11.03   11.21      11.24   10.71     
Average tangible equity to average assets (3) 9.04   8.97   8.83   8.82   9.52      8.92   9.29     
Average tangible common equity to average assets (3) 9.04   8.97   8.83   8.82   9.52      8.92   9.29     
Tangible common equity to risk-weighted assets (3)(5) 11.99   11.61   11.36   11.19   12.05      11.99   12.05     
                    -        
ASSET QUALITY                           
Nonperforming loans$23,778  $22,530  $21,817  $26,240  $23,658   1  $23,778  $23,658  1   
Foreclosed properties 1,305   1,336   2,597   2,714   3,234   (60)  1,305   3,234  (60)  
Total nonperforming assets (NPAs) 25,083   23,866   24,414   28,954   26,892   (7)  25,083   26,892  (7)  
Allowance for loan losses 61,203   60,940   61,071   61,085   58,914   4   61,203   58,914  4   
Net charge-offs 1,787   1,466   1,359   1,501   1,061   68   6,113   5,998  2   
Allowance for loan losses to loans 0.73 %0.74 %0.74 %0.75 %0.76 %   0.73 % 0.76 %   
Net charge-offs to average loans (4) 0.09   0.07   0.07   0.08   0.06      0.07   0.08     
NPAs to loans and foreclosed properties 0.30   0.29   0.30   0.35   0.35      0.30   0.35     
NPAs to total assets 0.20   0.19   0.20   0.24   0.23      0.20   0.23     
                            
AVERAGE BALANCES ($ in millions)                           
Loans$8,306  $8,200  $8,177  $7,993  $7,560   10  $8,170  $7,150  14   
Investment securities 3,004   2,916   2,802   2,870   2,991   -   2,899   2,847  2   
Earning assets 11,534   11,320   11,193   11,076   10,735   7   11,282   10,162  11   
Total assets 12,505   12,302   12,213   12,111   11,687   7   12,284   11,015  12   
Deposits 10,306   9,950   9,978   9,759   9,624   7   10,000   8,950  12   
Shareholders’ equity 1,420   1,394   1,370   1,336   1,310   8   1,380   1,180  17   
Common shares - basic (thousands) 79,884   79,806   79,753   79,205   76,768   4   79,662   73,247  9   
Common shares - diluted (thousands) 79,890   79,818   79,755   79,215   76,768   4   79,671   73,259  9   
                            
AT PERIOD END ($ in millions)                           
Loans$8,383  $8,226  $8,220  $8,184  $7,736   8  $8,383  $7,736  8   
Investment securities 2,903   2,873   2,834   2,731   2,937   (1)  2,903   2,937  (1)  
Total assets 12,573   12,405   12,386   12,264   11,915   6   12,573   11,915  6   
Deposits 10,535   10,229   9,966   9,993   9,808   7   10,535   9,808  7   
Shareholders’ equity 1,458   1,402   1,379   1,357   1,303   12   1,458   1,303  12   
Common shares outstanding (thousands) 79,234   79,202   79,138   79,123   77,580   2   79,234   77,580  2   
                            
(1)  Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation and a first quarter 2017 release of disproportionate tax effects lodged in OCI.  (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)  Fourth quarter 2018 ratio is preliminary. 
                            

 



UNITED COMMUNITY BANKS, INC.           
Selected Financial Information           
For the Years Ended December 31,           
            
(in thousands, except per share data) 2018 2017 2016 2015 2014 
INCOME SUMMARY           
Interest revenue $500,080  $389,720  $335,020  $278,532  $248,432 
Interest expense  61,330   33,735   25,236   21,109   25,551 
Net interest revenue  438,750   355,985   309,784   257,423   222,881 
Provision for credit losses  9,500   3,800   (800)  3,700   8,500 
Noninterest income  92,961   88,260   93,697   72,529   55,554 
Total revenue  522,211   440,445   404,281   326,252   269,935 
Expenses  306,285   267,611   241,289   211,238   162,865 
Income before income tax expense  215,926   172,834   162,992   115,014   107,070 
Income tax expense (benefit)  49,815   105,013   62,336   43,436   39,450 
Net income  166,111   67,821   100,656   71,578   67,620 
Merger-related and other charges  7,345   14,662   8,122   17,995   - 
Income tax benefit of merger-related and other charges  (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) $  171,962   $  120,337   $  106,680   $  83,185   $  67,620  
            
PERFORMANCE MEASURES           
Per common share:           
Diluted net income - GAAP $2.07  $0.92  $1.40  $1.09  $1.11 
Diluted net income - operating  (1)  2.14   1.63   1.48   1.27   1.11 
Cash dividends declared  0.58   0.38   0.30   0.22   0.11 
Book value  18.24   16.67   15.06   14.02   12.20 
Tangible book value (3)  14.24   13.65   12.95   12.06   12.15 
            
Key performance ratios:           
Return on common equity - GAAP (2)  11.60 % 5.67 % 9.41 % 8.15 % 9.17%
Return on common equity - operating (1)(2)  12.01   10.07   9.98   9.48   9.17 
Return on tangible common equity - operating (1)(2)(3)  15.69   12.02   11.86   10.24   9.32 
Return on assets - GAAP  1.35   0.62   1.00   0.85   0.91 
Return on assets - operating (1)  1.40   1.09   1.06   0.98   0.91 
Dividend payout ratio - GAAP  28.02   41.30   21.43   20.18   9.91 
Dividend payout ratio - operating (1)  27.10   23.31   20.27   17.32   9.91 
Net interest margin (fully taxable equivalent)  3.91   3.52   3.36   3.30   3.26 
Efficiency ratio - GAAP  57.31   59.95   59.80   63.96   58.26 
Efficiency ratio - operating  (1)  55.94   56.67   57.78   58.51   58.26 
Average equity to average assets  11.24   10.71   10.54   10.27   9.69 
Average tangible equity to average assets (3)  8.92   9.29   9.21   9.74   9.67 
Average tangible common equity to average assets (3)  8.92   9.29   9.19   9.66   9.60 
Tangible common equity to risk-weighted assets (3)(4)  11.99   12.05   11.84   12.82   13.82 
            
ASSET QUALITY           
Nonperforming loans $23,778  $23,658  $21,539  $22,653  $17,881 
Foreclosed properties  1,305   3,234   7,949   4,883   1,726 
Total nonperforming assets (NPAs)  25,083   26,892   29,488   27,536   19,607 
Allowance for loan losses  61,203   58,914   61,422   68,448   71,619 
Net charge-offs  6,113   5,998   6,766   6,259   13,879 
Allowance for loan losses to loans  0.73 % 0.76 % 0.89 % 1.14 % 1.53%
Net charge-offs to average loans  0.07   0.08   0.11   0.12   0.31 
NPAs to loans and foreclosed properties  0.30   0.35   0.43   0.46   0.42 
NPAs to total assets  0.20   0.23   0.28   0.29   0.26 
            
AVERAGE BALANCES ($ in millions)           
Loans $8,170  $7,150  $6,413  $5,298  $4,450 
Investment securities  2,899   2,847   2,691   2,368   2,274 
Earning assets  11,282   10,162   9,257   7,834   6,880 
Total assets  12,284   11,015   10,054   8,462   7,436 
Deposits  10,000   8,950   8,177   7,055   6,228 
Shareholders’ equity  1,380   1,180   1,059   869   720 
Common shares - basic (thousands)  79,662   73,247   71,910   65,488   60,588 
Common shares - diluted (thousands)  79,671   73,259   71,915   65,492   60,590 
            
AT PERIOD END ($ in millions)           
Loans $8,383  $7,736  $6,921  $5,995  $4,672 
Investment securities  2,903   2,937   2,762   2,656   2,198 
Total assets  12,573   11,915   10,709   9,616   7,558 
Deposits  10,535   9,808   8,638   7,873   6,335 
Shareholders’ equity  1,458   1,303   1,076   1,018   740 
Common shares outstanding (thousands)  79,234   77,580   70,899   71,484   60,259 
            
(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.  (4)  2018 ratio is preliminary. 
            

 


UNITED COMMUNITY BANKS, INC.                    
Non-GAAP Performance Measures Reconciliation                   
Selected Financial Information                    
                     
                     
 2018
 2017  For the Twelve Months Ended
December 31,
 
 Fourth  Third  Second  First  Fourth   
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter 2018 2017 2016 2015 2014 
                     
Expense reconciliation                    
Expenses (GAAP)$78,242  $77,718  $76,850  $73,475  $75,882  $306,285  $267,611  $241,289  $211,238  $162,865  
Merger-related and other charges (1,234)  (592)  (2,873)  (2,646)  (7,358)  (7,345)  (14,662)  (8,122)  (17,995)  -  
Expenses - operating$77,008  $77,126  $73,977  $70,829  $68,524  $298,940  $252,949  $233,167  $193,243  $162,865  
                     
Net income reconciliation                    
Net income (loss) (GAAP)$45,137  $43,682  $39,634  $37,658  $(11,916) $166,111  $67,821  $100,656  $71,578  $67,620  
Merger-related and other charges 1,234   592   2,873   2,646   7,358   7,345   14,662   8,122   17,995   -  
Income tax benefit of merger-related and other charges (604)  (141)  (121)  (628)  (1,165)  (1,494)  (3,745)  (3,074)  (6,388)  -  
Impact of tax reform on remeasurement of deferred tax asset -   -   -   -   38,199   -   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$45,767  $44,133  $42,386  $39,676  $32,476  $171,962  $120,337  $106,680  $83,185  $67,620  
                     
Diluted income per common share reconciliation                    
Diluted income (loss) per common share (GAAP)$0.56  $0.54  $0.49  $0.47  $(0.16) $2.07  $0.92  $1.40  $1.09  $1.11  
Merger-related and other charges 0.01   0.01   0.04   0.03   0.08   0.07   0.14   0.07   0.18   -  
Impact of tax reform on remeasurement of deferred tax asset -   -   -   -   0.50   -   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$0.57  $0.55  $0.53  $0.50  $0.42  $2.14  $1.63  $1.48  $1.27  $1.11  
                     
Book value per common share reconciliation                    
Book value per common share (GAAP)$18.24  $17.56  $17.29  $17.02  $16.67  $18.24  $16.67  $15.06  $14.02  $12.20  
Effect of goodwill and other intangibles (4.00)  (4.02)  (4.04)  (4.06)  (3.02)  (4.00)  (3.02)  (2.11)  (1.96)  (0.05) 
Tangible book value per common share$14.24  $13.54  $13.25  $12.96  $13.65  $14.24  $13.65  $12.95  $12.06  $12.15  
                     
Return on tangible common equity reconciliation                    
Return on common equity (GAAP) 12.08 % 11.96 % 11.20 % 11.11 % (3.57)% 11.60 % 5.67 % 9.41 % 8.15 % 9.17 %
Merger-related and other charges 0.17   0.13   0.77   0.60   1.86   0.41   0.92   0.48   1.33   -  
Impact of tax reform on remeasurement of deferred tax asset -   -   -   -   11.44   -   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   12.09   11.97   11.71   9.73   12.01   10.07   9.98   9.48   9.17  
Effect of goodwill and other intangibles 3.63   3.72   3.82   3.55   2.20   3.68   1.95   1.88   0.76   0.15  
Return on tangible common equity - operating 15.88 % 15.81 % 15.79 % 15.26 % 11.93 % 15.69 % 12.02 % 11.86 % 10.24 % 9.32 %
                     
Return on assets reconciliation                    
Return on assets (GAAP) 1.43 % 1.41 % 1.30 % 1.26 % (0.40)% 1.35 % 0.62 % 1.00 % 0.85 % 0.91 %
Merger-related and other charges 0.02   0.01   0.09   0.07   0.20   0.05   0.09   0.05   0.13   -  
Impact of tax reform on remeasurement of deferred tax asset -   -   -   -   1.30   -   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 1.45 % 1.42 % 1.39 % 1.33 % 1.10 % 1.40 % 1.09 % 1.06 % 0.98 % 0.91 %
                     
Dividend payout ratio reconciliation                    
Dividend payout ratio (GAAP) 28.57 % 27.78 % 30.61 % 25.53 % (62.50)% 28.02 % 41.30 % 21.43 % 20.18 % 9.91 %
Merger-related and other charges (0.50)  (0.51)  (2.31)  (1.53)  12.04   (0.92)  (5.65)  (1.02)  (2.86)  -  
Impact of tax reform on remeasurement of deferred tax asset -   -   -   -   74.27   -   (11.61)  -   -   -  
Impairment of deferred tax asset on canceled non-qualified stock options -   -   -   -   -   -   -   (0.14)  -   -  
Release of disproportionate tax effects lodged in OCI -   -   -   -   -   -   (0.73)  -   -   -  
Dividend payout ratio - operating 28.07 % 27.27 % 28.30 % 24.00 % 23.81 % 27.10 % 23.31 % 20.27 % 17.32 % 9.91 %
                     
Efficiency ratio reconciliation                    
Efficiency ratio (GAAP) 56.73 % 56.82 % 57.94 % 57.83 % 63.03 % 57.31 % 59.95 % 59.80 % 63.96 % 58.26 %
Merger-related and other charges (0.90)  (0.43)  (2.17)  (2.08)  (6.11)  (1.37)  (3.28)  (2.02)  (5.45)  -  
Efficiency ratio - operating 55.83 % 56.39 % 55.77 % 55.75 % 56.92 % 55.94 % 56.67 % 57.78 % 58.51 % 58.26 %
                     
Average equity to average assets reconciliation                    
Average equity to assets (GAAP) 11.35 % 11.33 % 11.21 % 11.03 % 11.21 % 11.24 % 10.71 % 10.54 % 10.27 % 9.69 %
Effect of goodwill and other intangibles (2.31)  (2.36)  (2.38)  (2.21)  (1.69)  (2.32)  (1.42)  (1.33)  (0.53)  (0.02) 
Average tangible equity to average assets 9.04   8.97   8.83   8.82   9.52   8.92   9.29   9.21   9.74   9.67  
Effect of preferred equity -   -   -   -   -   -   -   (0.02)  (0.08)  (0.07) 
Average tangible common equity to average assets 9.04 % 8.97 % 8.83 % 8.82 % 9.52 % 8.92 % 9.29 % 9.19 % 9.66 % 9.60 %
                     
Tangible common equity to risk-weighted assets reconciliation (1)                   
Tier 1 capital ratio (Regulatory) 12.41 % 12.25 % 11.94 % 11.61 % 12.24 % 12.41 % 12.24 % 11.23 % 11.45 % 12.06 %
Effect of other comprehensive income (0.44)  (0.68)  (0.57)  (0.50)  (0.29)  (0.44)  (0.29)  (0.34)  (0.38)  (0.35) 
Effect of deferred tax limitation 0.28   0.30   0.33   0.42   0.51   0.28   0.51   1.26   2.05   3.11  
Effect of trust preferred (0.26)  (0.26)  (0.34)  (0.34)  (0.36)  (0.26)  (0.36)  (0.25)  (0.08)  (1.00) 
Effect of preferred equity -   -   -   -   -   -   -   -   (0.15)  -  
Basel III intangibles transition adjustment -   -   -   -   (0.05)  -   (0.05)  (0.06)  (0.10)  -  
Basel III disallowed investments -   -   -   -   -   -   -   -   0.03   -  
Tangible common equity to risk-weighted assets 11.99 % 11.61 % 11.36 % 11.19 % 12.05 % 11.99 % 12.05 % 11.84 % 12.82 % 13.82 %
                     
(1)  Fourth quarter 2018 ratios are preliminary.                    

 


UNITED COMMUNITY BANKS, INC.          
Financial Highlights             
Loan Portfolio Composition at Period-End          
              
              
 2018
 2017 Linked
Quarter
Change
 Year over
Year
Change
  Fourth   Third   Second   First   Fourth   
(in millions)Quarter Quarter Quarter Quarter Quarter  
LOANS BY CATEGORY             
Owner occupied commercial RE$1,648 $1,673 $1,682 $1,898 $1,924 $(25) $(276)
Income producing commercial RE 1,812  1,788  1,821  1,677  1,595  24   217 
Commercial & industrial 1,278  1,194  1,193  1,142  1,131  84   147 
Commercial construction 796  761  735  691  712  35   84 
Equipment financing 565  509  465  423  -  56   565 
Total commercial 6,099  5,925  5,896  5,831  5,362  174   737 
Residential mortgage 1,049  1,035  1,021  992  974  14   75 
Home equity lines of credit 694  702  708  712  731  (8)  (37)
Residential construction 211  198  195  190  183  13   28 
Consumer 330  366  400  459  486  (36)  (156)
Total loans$8,383 $8,226 $8,220 $8,184 $7,736  157   647 
              
LOANS BY MARKET             
North Georgia$981 $992 $1,001 $1,004 $1,019  (11)  (38)
Atlanta MSA 1,507  1,493  1,533  1,513  1,510  14   (3)
North Carolina 1,072  1,078  1,067  1,037  1,049  (6)  23 
Coastal Georgia 588  610  623  635  630  (22)  (42)
Gainesville MSA 247  235  230  231  248  12   (1)
East Tennessee 477  460  474  473  475  17   2 
South Carolina 1,645  1,586  1,571  1,537  1,486  59   159 
Commercial Banking Solutions 1,658  1,530  1,444  1,438  961  128   697 
Indirect auto 208  242  277  316  358  (34)  (150)
Total loans$8,383 $8,226 $8,220 $8,184 $7,736  157   647 
              


 

UNITED COMMUNITY BANKS, INC.        
Financial Highlights          
Loan Portfolio Composition at Year-End        
           
           
(in millions) 2018 2017 2016 2015 2014
LOANS BY CATEGORY          
Owner occupied commercial RE $1,648 $1,924 $1,650 $1,571 $1,257
Income producing commercial RE  1,812  1,595  1,282  1,021  767
Commercial & industrial  1,278  1,131  1,070  785  710
Commercial construction  796  712  634  518  364
Equipment financing  565  -  -  -  -
Total commercial  6,099  5,362  4,636  3,895  3,098
Residential mortgage  1,049  974  857  764  614
Home equity lines of credit  694  731  655  589  456
Residential construction  211  183  190  176  131
Consumer installment  330  486  583  571  373
Total loans $8,383 $7,736 $6,921 $5,995 $4,672
           
           
LOANS BY MARKET          
North Georgia $981 $1,019 $1,097 $1,125 $1,163
Atlanta MSA  1,507  1,510  1,399  1,259  1,243
North Carolina  1,072  1,049  545  549  553
Coastal Georgia  588  630  581  537  456
Gainesville MSA  247  248  248  254  257
East Tennessee  477  475  504  504  280
South Carolina  1,645  1,486  1,233  819  30
Commercial Banking Solutions  1,658  961  855  492  421
Indirect auto  208  358  459  456  269
Total loans $8,383 $7,736 $6,921 $5,995 $4,672
           


UNITED COMMUNITY BANKS, INC.                         
Financial Highlights                            
Credit Quality                            
                             
                             
  Fourth Quarter 2018
  Third Quarter 2018
  Second 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 $6,421   $170   $6,591   $4,884   $183   $5,067   $5,772   $812   $6,584   
Income producing CRE  1,160    -    1,160    1,194    156    1,350    991    455    1,446   
Commercial & industrial  1,417    -    1,417    1,516    -    1,516    2,180    -    2,180   
Commercial construction  605    421    1,026    825    522    1,347    613    576    1,189   
Equipment financing  2,677    -    2,677    1,181    -    1,181    1,075    -    1,075   
Total commercial  12,280    591    12,871    9,600    861    10,461    10,631    1,843    12,474   
Residential mortgage  8,035    654    8,689    8,928    424    9,352    7,918    184    8,102   
Home equity lines of credit  2,360    60    2,420    2,814    -    2,814    1,812    550    2,362   
Residential construction  288    -    288    455    51    506    637    20    657   
Consumer  815    -    815    733    -    733    819    -    819   
Total NPAs $23,778   $1,305   $25,083   $22,530   $1,336   $23,866   $21,817   $2,597   $24,414   
                             
NONPERFORMING ASSETS BY MARKET                       
North Georgia $6,527   $286   $6,813   $7,170   $361   $7,531   $7,583   $640   $8,223   
Atlanta MSA  1,578    -    1,578    1,778    132    1,910    1,928    132    2,060   
North Carolina  3,259    743    4,002    3,690    480    4,170    3,029    750    3,779   
Coastal Georgia  1,491    -    1,491    1,498    -    1,498    943    -    943   
Gainesville MSA  479    -    479    212    -    212    186    -    186   
East Tennessee  1,147    -    1,147    1,403    128    1,531    1,473    143    1,616   
South Carolina  4,123    276    4,399    3,280    235    3,515    3,093    362    3,455   
Commercial Banking Solutions 4,448    -    4,448    2,871    -    2,871    2,831    570    3,401   
Indirect auto  726    -    726    628    -    628    751    -    751   
Total NPAs $23,778   $1,305   $25,083   $22,530   $1,336   $23,866   $21,817   $2,597   $24,414   
                             
NONPERFORMING ASSETS ACTIVITY                         
Beginning Balance $22,530   $1,336   $23,866   $21,817   $2,597   $24,414   $26,240   $2,714   $28,954   
Acquisitions  -    -    -    -    -    -    -    -    -   
Loans placed on non-accrual 5,829    -    5,829    5,759    -    5,759    3,612    -    3,612   
Payments received  (2,780)   -    (2,780)   (3,095)   -    (3,095)   (5,314)   -    (5,314)  
Loan charge-offs  (933)   -    (933)   (1,588)   -    (1,588)   (2,065)   -    (2,065)  
Foreclosures  (868)   955    87    (363)   454    91    (656)   984    328   
Property sales  -    (1,019)   (1,019)   -    (1,659)   (1,659)   -    (1,029)   (1,029)  
Write downs  -    (112)   (112)   -    (166)   (166)   -    (106)   (106)  
Net gains on sales  -    145    145    -    110    110    -    34    34   
Ending Balance $23,778   $1,305   $25,083   $22,530   $1,336   $23,866   $21,817   $2,597   $24,414   
                             
  Fourth Quarter 2018  Third Quarter 2018  Second Quarter 2018           
      Net Charge-
       Net Charge-
       Net Charge-
            
      Offs to      Offs to      Offs to           
  Net
  Average  Net
  Average  Net
  Average           
(in thousands) Charge-Offs
 Loans (1) Charge-Offs
 Loans (1) Charge-Offs
 Loans (1)          
                    
NET CHARGE-OFFS BY CATEGORY                         
Owner occupied CRE $(52)   (0.01)% $(251)   (0.06)% $(578)   (0.13)%          
Income producing CRE  399    0.09    1    -    1,421    0.33            
Commercial & industrial  (149)   (0.05)   418    0.14    16    0.01            
Commercial construction  (230)   (0.12)   (43)   (0.02)   (107)   (0.06)           
Equipment financing  599    0.44    482    0.39    (49)   (0.04)           
Total commercial  567    0.04    607    0.04    703    0.05            
Residential mortgage  290    0.11    171    0.07    11    -            
Home equity lines of credit  382    0.22    279    0.16    21    0.01            
Residential construction  (36)   (0.07)   (164)   (0.33)   (58)   (0.12)           
Consumer  584    0.67    573    0.60    682    0.64            
Total $1,787    0.09   $1,466    0.07   $1,359    0.07            
                             
NET CHARGE-OFFS BY MARKET                          
North Georgia $543    0.22 % $483    0.19 % $246    0.10 %          
Atlanta MSA  (159)   (0.04)   99    0.03    103    0.03            
North Carolina  68    0.03    (87)   (0.03)   1,268    0.48            
Coastal Georgia  (86)   (0.06)   24    0.02    19    0.01            
Gainesville MSA  333    0.56    (48)   (0.08)   (2)   -            
East Tennessee  (111)   (0.09)   (1)   -    76    0.06            
South Carolina  57    0.01    418    0.11    (1,057)   (0.27)           
Commercial Banking Solutions 948    0.23    403    0.11    381    0.11            
Indirect auto  194    0.34    175    0.27    325    0.44            
Total $1,787    0.09   $1,466    0.07   $1,359    0.07            
                             
(1)  Annualized.                            



UNITED COMMUNITY BANKS, INC.        
Consolidated Statements of Income (Unaudited)        
         
  Three Months Ended Twelve Months Ended
  December 31,
 December 31, 
(in thousands, except per share data) 2018 2017
 2018
 2017
         
Interest revenue:        
Loans, including fees $112,087 $87,234  $420,383  $315,050
Investment securities, including tax exempt of $1,140, $909, $4,189, and $2,216  21,237  19,023   77,685   72,388
Deposits in banks and short-term investments  530  500   2,012   2,282
Total interest revenue  133,854  106,757   500,080   389,720
         
Interest expense:        
Deposits:        
NOW and interest-bearing demand  3,073  1,433   7,390   3,365
Money market  4,078  2,095   12,097   7,033
Savings  33  46   150   135
Time  7,006  2,272   19,906   6,529
Total deposit interest expense  14,190  5,846   39,543   17,062
Short-term borrowings  340  175   1,112   352
Federal Home Loan Bank advances  794  1,492   6,345   6,095
Long-term debt  3,651  1,736   14,330   10,226
Total interest expense  18,975  9,249   61,330   33,735
Net interest revenue  114,879  97,508   438,750   355,985
Provision for credit losses  2,100  1,200   9,500   3,800
Net interest revenue after provision for credit losses  112,779  96,308   429,250   352,185
         
Noninterest income:        
Service charges and fees  9,166  8,770   35,997   38,295
Mortgage loan and other related fees  3,082  4,885   19,010   18,320
Brokerage fees  1,593  1,068   5,191   4,633
Gains from sales of SBA/USDA loans  2,493  3,102   9,277   10,493
Securities gains (losses), net  646  (148)  (656)  42
Other  6,065  4,251   24,142   16,477
Total noninterest income  23,045  21,928   92,961   88,260
Total revenue  135,824  118,236   522,211   440,445
         
Noninterest expenses:        
Salaries and employee benefits  45,631  41,042   181,015   153,098
Communications and equipment  6,206  5,217   21,277   19,660
Occupancy  5,842  5,542   22,781   20,344
Advertising and public relations  1,650  895   5,991   4,242
Postage, printing and supplies  1,520  1,825   6,416   5,952
Professional fees  4,105  3,683   15,540   12,074
FDIC assessments and other regulatory charges  1,814  1,776   8,491   6,534
Amortization of intangibles  1,420  1,760   6,846   4,845
Merger-related and other charges  965  6,841   5,414   13,901
Other  9,089  7,301   32,514   26,961
Total noninterest expenses  78,242  75,882   306,285   267,611
Net income before income taxes  57,582  42,354   215,926   172,834
Income tax expense  12,445  54,270   49,815   105,013
Net income $45,137 $(11,916) $166,111  $67,821
         
Net income available to common shareholders $44,801 $(11,986) $164,927  $67,250
         
Earnings per common share:        
Basic  0.56  (0.16)  2.07   0.92
Diluted  0.56  (0.16)  2.07   0.92
Weighted average common shares outstanding:        
Basic  79,884  76,768   79,662   73,247
Diluted  79,890  76,768   79,671   73,259
         


 

UNITED COMMUNITY BANKS, INC.    
Consolidated Balance Sheets (Unaudited)    
     
  December 31, December 31,
(in thousands, except share and per share data) 2018 2017
     
ASSETS    
Cash and due from banks $126,083  $129,108 
Interest-bearing deposits in banks  201,182   185,167 
Cash and cash equivalents  327,265   314,275 
Debt securities available for sale  2,628,467   2,615,850 
Debt securities held to maturity (fair value $268,803 and $321,276)  274,407   321,094 
Loans held for sale (includes $18,935 and $26,252 at fair value)  18,935   32,734 
Loans and leases, net of unearned income  8,383,401   7,735,572 
Less allowance for loan and lease losses  (61,203)  (58,914)
Loans, net  8,322,198   7,676,658 
Premises and equipment, net  206,140   208,852 
Bank owned life insurance  192,616   188,970 
Accrued interest receivable  35,413   32,459 
Net deferred tax asset  64,224   88,049 
Derivative financial instruments  24,705   22,721 
Goodwill and other intangible assets  324,072   244,397 
Other assets  154,750   169,401 
Total assets $12,573,192  $11,915,460 
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
Deposits:    
Noninterest-bearing demand $3,210,220  $3,087,797 
NOW and interest-bearing demand  2,274,775   2,131,939 
Money market  2,097,526   2,016,748 
Savings  669,886   651,742 
Time  1,598,391   1,548,460 
Brokered  683,715   371,011 
Total deposits  10,534,513   9,807,697 
Short-term borrowings  -   50,000 
Federal Home Loan Bank advances  160,000   504,651 
Long-term debt  267,189   120,545 
Derivative financial instruments  26,433   25,376 
Accrued expenses and other liabilities  127,503   103,857 
Total liabilities  11,115,638   10,612,126 
Shareholders' equity:    
Common stock, $1 par value; 150,000,000 shares authorized; 79,234,077 and 77,579,561 shares issued and outstanding  79,234   77,580 
Common stock issuable; 674,499 and 607,869 shares  10,744   9,083 
Capital surplus  1,499,584   1,451,814 
Accumulated deficit  (90,419)  (209,902)
Accumulated other comprehensive loss  (41,589)  (25,241)
Total shareholders' equity  1,457,554   1,303,334 
Total liabilities and shareholders' equity $12,573,192  $11,915,460 
     


 

UNITED COMMUNITY BANKS, INC.