GREENVILLE, S.C., April 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported first quarter financial results, with solid year-over-year loan and deposit growth. United delivered net income of $31.9 million, pre-tax pre-provision income of $62.9 million, and built its allowance for credit losses with a $22.2 million provision for credit losses given the uncertain environment.  Diluted earnings per share were $0.40, a decrease of $0.15 or 27% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.41, also down 27% from last year. United’s return on assets (“ROA”) was 0.99% and its return on common equity was 7.9% for the quarter. On an operating basis, United’s ROA was 1.01% and its return on tangible common equity was 10.6%.

Chairman and CEO Lynn Harton stated, “While I am pleased to report a solid quarter in a difficult environment, I am most proud of how our employees are delivering for our customers during this public health crisis. We consider ourselves ‘Financial First Responders’ and feel privileged to take care of our customers in this time of significant stress. Among other things, we were able to help support our small business clients who have experienced financial hardship due to COVID-19 by offering loan deferrals as needed, and by participating in the Small Business Administration’s Paycheck Protection Program (“PPP”). As one of the largest Preferred SBA lenders in the Southeast, we mobilized our existing SBA team, as well as hundreds of additional United bankers to process applications as quickly as possible. As a result, our team was able to successfully process applications totaling more than $960 million and reserve funding for 6,918 small businesses as of April 16, 2020.

Harton continued, “We are focused on the safety of employees and customers, with 54% of our non-branch employees working from home, and all branches operating a drive-through only model with lobbies available by appointment. The investments we have made in our digital delivery channels are paying off with increased online account openings as well as increased web traffic, and digital and social engagement. Looking forward, based on much of what we are learning now, we have the potential to be even stronger with greater innovation and business growth opportunities.”

This quarter saw record core transaction growth with loans growing at a 6% annualized rate and total deposits up by 5% on an annualized basis. Increased purchased loan accretion drove United’s net interest margin 14 basis points higher in the quarter. Excluding purchased loan accretion, the net interest margin was down just 1 basis point. Total deposits were up $138 million over last quarter, with core transaction deposits up $238 million, or 13% annualized. This was mainly driven by demand deposit growth of $165 million.

Mr. Harton concluded, “I am also tremendously proud that for 2020, Forbes recognized United for the seventh consecutive year on its list of the 100 Best Banks in America. Additionally, this quarter United received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South, and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. These honors are remarkable and are only achieved through the dedication of our bankers to build a company where great people can build fulfilling careers through helping our customers reach their financial goals.”

First Quarter 2020 Financial Highlights:

  • EPS decreased by 27% as compared to last year on both a GAAP and operating basis
  • Return on assets of 0.99%, or 1.01% excluding merger-related and other charges
  • Pre-tax pre-provision return on assets of 1.95%, or 1.98%, excluding merger-related charges
  • Return on common equity of 7.9%
  • Return on tangible common equity of 10.6%, excluding merger-related and other charges
  • United adopted the CECL model in 1Q; the uncertain economic outlook necessitated a provision for credit losses of $22.2 million
  • Loan production of $919 million compared to $782 million in Q1 2019
  • Loan growth of 6% for the quarter on an annualized basis
  • Core transaction deposits were up $238 million or 13% annualized, mainly driven by demand deposit growth of $165 million during the quarter
  • Net interest margin of 4.07% was up 14 basis points compared to the fourth quarter, and down 3 basis points from a year ago
  • Mortgage rate locks of $801 million, exceeding our previous quarterly record by 58%, and compared to $312 million a year ago
  • Noninterest income was down $4.4 million on a linked quarter basis, as record mortgage rate locks and production were more than offset by a larger negative mortgage servicing rights mark-to-market
  • Efficiency ratio of 56.15%, or 55.59% excluding merger-related and other charges
  • Net charge-offs of $8.1 million, or 37 basis points as a percent of average loans, up 19 basis points from last quarter mainly due to a single commercial loan default totaling $6.4 million
  • Nonperforming assets of 0.28% of total assets, which is flat compared to December 31, 2019
  • Repurchased 826,482 shares at an average price of $25.14 in the quarter

Conference Call
United will hold a conference call, Wednesday, April 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 1559838. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.


UNITED COMMUNITY BANKS, INC.            
Selected Financial Information            
  2020 2019 First Quarter 2020 - 2019 Change
(in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter 
INCOME SUMMARY            
Interest revenue $136,547  $136,419  $140,615  $139,156  $136,516   
Interest expense 17,941  19,781  21,277  21,372  20,882   
Net interest revenue 118,606  116,638  119,338  117,784  115,634  3%
Provision for credit losses 22,191  3,500  3,100  3,250  3,300   
Noninterest income 25,814  30,183  29,031  24,531  20,968  23 
Total revenue 122,229  143,321  145,269  139,065  133,302  (8)
Expenses 81,538  81,424  82,924  81,813  76,084  7 
Income before income tax expense 40,691  61,897  62,345  57,252  57,218  (29)
Income tax expense 8,807  12,885  13,983  13,167  12,956  (32)
Net income 31,884  49,012  48,362  44,085  44,262  (28)
Merger-related and other charges 808  (74) 2,605  4,087  739   
Income tax benefit of merger-related and other charges (182) 17  (600) (940) (172)  
Net income - operating (1) $32,510  $48,955  $50,367  $47,232  $44,829  (27)
             
Pre-tax pre-provision income (5) $62,882  $65,397  $65,445  $60,502  $60,518  4 
             
PERFORMANCE MEASURES            
Per common share:            
Diluted net income - GAAP $0.40  $0.61  $0.60  $0.55  $0.55  (27)
Diluted net income - operating (1) 0.41  0.61  0.63  0.59  0.56  (27)
Cash dividends declared 0.18  0.18  0.17  0.17  0.16  13 
Book value 20.80  20.53  20.16  19.65  18.93  10 
Tangible book value (3) 16.52  16.28  15.90  15.38  14.93  11 
Key performance ratios:            
Return on common equity - GAAP (2)(4) 7.85% 12.07% 12.16% 11.45% 11.85%  
Return on common equity - operating (1)(2)(4) 8.01  12.06  12.67  12.27  12.00   
Return on tangible common equity - operating (1)(2)(3)(4) 10.57  15.49  16.38  15.88  15.46   
Return on assets - GAAP (4) 0.99  1.50  1.51  1.40  1.44   
Return on assets - operating (1)(4) 1.01  1.50  1.58  1.50  1.45   
Return on assets - pre-tax pre-provision (4)(5) 1.95  2.00  2.05  1.92  1.96   
Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5) 1.98  2.00  2.13  2.05  1.99   
Net interest margin (fully taxable equivalent) (4) 4.07  3.93  4.12  4.12  4.10   
Efficiency ratio - GAAP 56.15  54.87  55.64  57.28  55.32   
Efficiency ratio - operating (1) 55.59  54.92  53.90  54.42  54.78   
Equity to total assets 12.54  12.66  12.53  12.25  12.06   
Tangible common equity to tangible assets (3) 10.22  10.32  10.16  9.86  9.76   
             
ASSET QUALITY            
Nonperforming loans $36,208  $35,341  $30,832  $26,597  $23,624  53 
Foreclosed properties 475  476  102  75  1,127  (58)
Total nonperforming assets ("NPAs") 36,683  35,817  30,934  26,672  24,751  48 
Allowance for credit losses - loans 81,905  62,089  62,514  62,204  61,642  33 
Net charge-offs 8,114  3,925  2,723  2,438  3,130  159 
Allowance for credit losses to loans 0.92% 0.70% 0.70% 0.70% 0.73%  
Net charge-offs to average loans (4) 0.37  0.18  0.12  0.11  0.15   
NPAs to loans and foreclosed properties 0.41  0.41  0.35  0.30  0.29   
NPAs to total assets 0.28  0.28  0.24  0.21  0.20   
             
AVERAGE BALANCES ($ in millions)            
Loans $8,829  $8,890  $8,836  $8,670  $8,430  5 
Investment securities 2,520  2,486  2,550  2,674  2,883  (13)
Earning assets 11,798  11,832  11,568  11,534  11,498  3 
Total assets 12,944  12,946  12,681  12,608  12,509  3 
Deposits 10,915  10,924  10,531  10,493  10,361  5 
Shareholders’ equity 1,653  1,623  1,588  1,531  1,478  12 
Common shares - basic (thousands) 79,340  79,659  79,663  79,673  79,807  (1)
Common shares - diluted (thousands) 79,446  79,669  79,667  79,678  79,813   
             
AT PERIOD END ($ in millions)            
Loans $8,935  $8,813  $8,903  $8,838  $8,493  5 
Investment securities 2,540  2,559  2,515  2,620  2,720  (7)
Total assets 13,086  12,916  12,809  12,779  12,506  5 
Deposits 11,035  10,897  10,757  10,591  10,534  5 
Shareholders’ equity 1,641  1,636  1,605  1,566  1,508  9 
Common shares outstanding (thousands) 78,284  79,014  78,974  79,075  79,035  (1)

(1) Excludes merger-related and other charges which includes termination of pension plan in the third quarter of 2019, executive retirement charges in the second quarter of 2019 and amortization of certain executive change of control benefits. (2) Net income divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.


UNITED COMMUNITY BANKS, INC.          
Non-GAAP Performance Measures Reconciliation
Selected Financial Information          
  2020 2019
 (in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
           
Expense reconciliation          
Expenses (GAAP) $81,538  $81,424  $82,924  $81,813  $76,084 
Merger-related and other charges (808) 74  (2,605) (4,087) (739)
Expenses - operating $80,730  $81,498  $80,319  $77,726  $75,345 
           
Net income to operating income reconciliation          
Net income (GAAP) $31,884  $49,012  $48,362  $44,085  $44,262 
Merger-related and other charges 808  (74) 2,605  4,087  739 
Income tax benefit of merger-related and other charges (182) 17  (600) (940) (172)
Net income - operating $32,510  $48,955  $50,367  $47,232  $44,829 
           
Net income to pre-tax pre-provision income reconciliation          
Net income (GAAP) $31,884  $49,012  $48,362  $44,085  $44,262 
Income tax expense 8,807  12,885  13,983  13,167  12,956 
Provision for credit losses 22,191  3,500  3,100  3,250  3,300 
Pre-tax pre-provision income $62,882  $65,397  $65,445  $60,502  $60,518 
           
Diluted income per common share reconciliation          
Diluted income per common share (GAAP) $0.40  $0.61  $0.60  $0.55  $0.55 
Merger-related and other charges, net of tax 0.01    0.03  0.04  0.01 
Diluted income per common share - operating $0.41  $0.61  $0.63  $0.59  $0.56 
           
Book value per common share reconciliation          
Book value per common share (GAAP) $20.80  $20.53  $20.16  $19.65  $18.93 
Effect of goodwill and other intangibles (4.28) (4.25) (4.26) (4.27) (4.00)
Tangible book value per common share $16.52  $16.28  $15.90  $15.38  $14.93 
           
Return on tangible common equity reconciliation          
Return on common equity (GAAP) 7.85% 12.07% 12.16% 11.45% 11.85%
Merger-related and other charges, net of tax 0.16  (0.01) 0.51  0.82  0.15 
Return on common equity - operating 8.01  12.06  12.67  12.27  12.00 
Effect of goodwill and other intangibles 2.56  3.43  3.71  3.61  3.46 
Return on tangible common equity - operating 10.57% 15.49% 16.38% 15.88% 15.46%
           
Return on assets reconciliation          
Return on assets (GAAP) 0.99% 1.50% 1.51% 1.40% 1.44%
Merger-related and other charges, net of tax 0.02    0.07  0.10  0.01 
Return on assets - operating 1.01% 1.50% 1.58% 1.50% 1.45%
           
Return on assets to return on assets- pre-tax pre-provision reconciliation          
Return on assets (GAAP) 0.99% 1.50% 1.51% 1.40% 1.44%
Income tax expense 0.27  0.39  0.44  0.42  0.41 
Provision for credit losses 0.69  0.11  0.10  0.10  0.11 
Return on assets - pre-tax, pre-provision 1.95  2.00  2.05  1.92  1.96 
Merger-related and other charges 0.03    0.08  0.13  0.03 
Return on assets - pre-tax pre-provision, excluding merger-related and other charges 1.98% 2.00% 2.13% 2.05% 1.99%
           
Efficiency ratio reconciliation          
Efficiency ratio (GAAP) 56.15% 54.87% 55.64% 57.28% 55.32%
Merger-related and other charges (0.56) 0.05  (1.74) (2.86) (0.54)
Efficiency ratio - operating 55.59% 54.92% 53.90% 54.42% 54.78%
           
Tangible common equity to tangible assets reconciliation          
Equity to total assets (GAAP) 12.54% 12.66% 12.53% 12.25% 12.06%
Effect of goodwill and other intangibles (2.32) (2.34) (2.37) (2.39) (2.30)
Tangible common equity to tangible assets 10.22% 10.32% 10.16% 9.86% 9.76%


UNITED COMMUNITY BANKS, INC.            
Financial Highlights            
Loan Portfolio Composition at Period-End            
              
 2020 2019 Linked Quarter Change Year over Year Change
(in millions)First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter  
LOANS BY CATEGORY             
Owner occupied commercial RE$1,703  $1,720  $1,692  $1,658  $1,620  $(17) $83 
Income producing commercial RE2,065  2,008  1,934  1,939  1,867  57  198 
Commercial & industrial1,310  1,221  1,271  1,299  1,284  89  26 
Commercial construction959  976  1,001  983  866  (17) 93 
Equipment financing761  745  729  674  606  16  155 
Total commercial6,798  6,670  6,627  6,553  6,243  128  555 
Residential mortgage1,128  1,118  1,121  1,108  1,064  10  64 
Home equity lines of credit668  661  669  675  684  7  (16)
Residential construction216  236  229  219  200  (20) 16 
Consumer125  128  257  283  302  (3) (177)
Total loans$8,935  $8,813  $8,903  $8,838  $8,493  $122  $442 
              
LOANS BY MARKET             
North Georgia$958  $967  $1,002  $1,002  $970  (9) (12)
Atlanta1,820  1,762  1,740  1,745  1,524  58  296 
North Carolina1,124  1,156  1,117  1,084  1,074  (32) 50 
Coastal Georgia604  631  611  604  603  (27) 1 
Gainesville235  246  246  244  243  (11) (8)
East Tennessee425  421  435  446  458  4  (33)
South Carolina1,774  1,708  1,705  1,674  1,674  66  100 
Commercial Banking Solutions1,995  1,922  1,916  1,884  1,766  73  229 
Indirect auto    131  155  181    (181)
Total loans$8,935  $8,813  $8,903  $8,838  $8,493  $122  $442 


UNITED COMMUNITY BANKS, INC.            
Financial Highlights            
Credit Quality            
  2020 2019      
(in thousands) First Quarter Fourth Quarter Third Quarter      
NONACCRUAL LOANS            
Owner occupied RE $10,405  $10,544  $8,430       
Income producing RE 2,235  1,996  2,030       
Commercial & industrial 3,169  2,545  2,625       
Commercial construction 1,724  2,277  1,894       
Equipment financing 2,439  3,141  1,974       
Total commercial 19,972  20,503  16,953       
Residential mortgage 12,458  10,567  9,475       
Home equity lines of credit 3,010  3,173  3,065       
Residential construction 540  939  597       
Consumer 228  159  742       
Total $36,208  $35,341  $30,832       


  2020 2019
  First Quarter Fourth Quarter Third 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 $(1,028) (0.24)% $(208) (0.05)% $(39) (0.01)%
Income producing RE 270  0.05  95  0.02  431  0.09 
Commercial & industrial 7,185  2.30  1,809  0.58  691  0.21 
Commercial construction (141) (0.06) (140) (0.06) (247) (0.10)
Equipment financing 1,507  0.81  1,550  0.84  1,174  0.67 
Total commercial 7,793  0.47  3,106  0.19  2,010  0.12 
Residential mortgage 9    89  0.03  158  0.06 
Home equity lines of credit (83) (0.05) 198  0.12  83  0.05 
Residential construction (12) (0.02) (24) (0.04) (5) (0.01)
Consumer 407  1.30  556  0.90  477  0.70 
Total $8,114  0.37  $3,925  0.18  $2,723  0.12 
             
(1)  Annualized.            


UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data) March 31, 2020 December 31, 2019
ASSETS    
Cash and due from banks $155,008  $125,844 
Interest-bearing deposits in banks 365,494  389,362 
Cash and cash equivalents 520,502  515,206 
Debt securities available for sale 2,249,876  2,274,581 
Debt securities held to maturity (fair value $301,595 and $287,904) 290,404  283,533 
Loans held for sale at fair value 89,959  58,484 
Loans and leases held for investment 8,935,424  8,812,553 
Less allowance for credit losses - loans and leases (81,905) (62,089)
Loans and leases, net 8,853,519  8,750,464 
Premises and equipment, net 214,744  215,976 
Bank owned life insurance 200,778  202,664 
Accrued interest receivable 31,570  32,660 
Net deferred tax asset 30,715  34,059 
Derivative financial instruments 82,668  35,007 
Goodwill and other intangible assets, net 341,207  342,247 
Other assets 179,924  171,135 
Total assets $13,085,866  $12,916,016 
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
Deposits:    
Noninterest-bearing demand $3,624,806  $3,477,979 
NOW and interest-bearing demand 2,391,976  2,461,895 
Money market 2,277,052  2,230,628 
Savings 732,209  706,467 
Time 1,840,767  1,859,574 
Brokered 168,116  160,701 
Total deposits 11,034,926  10,897,244 
Long-term debt 212,849  212,664 
Derivative financial instruments 27,349  15,516 
Accrued expenses and other liabilities 170,130  154,900 
Total liabilities 11,445,254  11,280,324 
Shareholders' equity:    
Common stock, $1 par value; 150,000,000 shares authorized;
  78,283,544 and 79,013,729 shares issued and outstanding
 78,284  79,014 
Common stock issuable; 591,053 and 664,640 shares 10,534  11,491 
Capital surplus 1,478,719  1,496,641 
Retained earnings 54,206  40,152 
Accumulated other comprehensive income 18,869  8,394 
Total shareholders' equity 1,640,612  1,635,692 
Total liabilities and shareholders' equity $13,085,866  $12,916,016 



UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
  Three Months Ended
March 31,
(in thousands, except per share data) 2020 2019
Interest revenue:    
Loans, including fees $118,063  $115,259 
Investment securities, including tax exempt of $1,523 and $1,169 17,394  20,818 
Deposits in banks and short-term investments 1,090  439 
Total interest revenue 136,547  136,516 
     
Interest expense:    
Deposits:    
NOW and interest-bearing demand 2,978  3,609 
Money market 4,531  4,132 
Savings 35  32 
Time 7,531  8,184 
Deposits 15,075  15,957 
Short-term borrowings 1  161 
Federal Home Loan Bank advances 1  1,422 
Long-term debt 2,864  3,342 
Total interest expense 17,941  20,882 
Net interest revenue 118,606  115,634 
Provision for credit losses 22,191  3,300 
Net interest revenue after provision for credit losses 96,415  112,334 
     
Noninterest income:    
Service charges and fees 8,638  8,453 
Mortgage loan gains and other related fees 8,310  3,748 
Brokerage fees 1,640  1,337 
Gains from sales of other loans, net 1,674  1,303 
Securities losses, net   (267)
Other 5,552  6,394 
Total noninterest income 25,814  20,968 
Total revenue 122,229  133,302 
     
Noninterest expenses:    
Salaries and employee benefits 51,358  47,503 
Communications and equipment 5,946  5,788 
Occupancy 5,714  5,584 
Advertising and public relations 1,274  1,286 
Postage, printing and supplies 1,670  1,586 
Professional fees 4,097  3,161 
Lending and loan servicing expense 2,293  2,334 
Outside services - electronic banking 1,832  1,609 
FDIC assessments and other regulatory charges 1,484  1,710 
Amortization of intangibles 1,040  1,293 
Merger-related and other charges 808  546 
Other 4,022  3,684 
Total noninterest expenses 81,538  76,084 
Net income before income taxes 40,691  57,218 
Income tax expense 8,807  12,956 
Net income $31,884  $44,262 
     
Net income available to common shareholders $31,641  $43,947 
     
Net income per common share:    
Basic $0.40  $0.55 
Diluted 0.40  0.55 
Weighted average common shares outstanding:    
Basic 79,340  79,807 
Diluted 79,446  79,813 



Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,


  2020 2019
(dollars in thousands, fully taxable equivalent (FTE)) Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:            
Interest-earning assets:            
Loans, net of unearned income (FTE) (1)(2) $8,828,880  $117,796  5.37% $8,429,976  $115,347  5.55%
Taxable securities (3) 2,357,635  15,871  2.69  2,712,995  19,649  2.90 
Tax-exempt securities (FTE) (1)(3) 162,253  2,045  5.04  169,702  1,570  3.70 
Federal funds sold and other interest-earning assets 448,775  1,632  1.46  185,623  618  1.33 
Total interest-earning assets (FTE) 11,797,543  137,344  4.68  11,498,296  137,184  4.83 
             
Noninterest-earning assets:            
Allowance for credit losses (69,777)     (61,784)    
Cash and due from banks 128,254      123,801     
Premises and equipment 219,243      216,611     
Other assets (3) 868,452      731,628     
Total assets $12,943,715      $12,508,552     
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW and interest-bearing demand $2,412,733  2,978  0.50  $2,286,619  3,609  0.64 
Money market 2,340,723  4,531  0.78  2,098,052  4,132  0.80 
Savings 712,110  35  0.02  672,197  32  0.02 
Time 1,841,552  7,250  1.58  1,627,584  5,336  1.33 
Brokered time deposits 80,821  281  1.40  482,048  2,848  2.40 
Total interest-bearing deposits 7,387,939  15,075  0.82  7,166,500  15,957  0.90 
Federal funds purchased and other borrowings 396  1  1.02  21,549  161  3.03 
Federal Home Loan Bank advances 165  1  2.44  223,945  1,422  2.58 
Long-term debt 212,762  2,864  5.41  261,971  3,342  5.17 
Total borrowed funds 213,323  2,866  5.40  507,465  4,925  3.94 
Total interest-bearing liabilities 7,601,262  17,941  0.95  7,673,965  20,882  1.10 
             
Noninterest-bearing liabilities:            
Noninterest-bearing deposits 3,527,385      3,194,401     
Other liabilities 162,187      162,213     
Total liabilities 11,290,834      11,030,579     
Shareholders' equity 1,652,881      1,477,973     
Total liabilities and shareholders' equity $12,943,715      $12,508,552     
             
Net interest revenue (FTE)   $119,403      $116,302   
Net interest-rate spread (FTE)     3.73%     3.73%
Net interest margin (FTE) (4)     4.07%     4.10%

(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 $52.9 million in 2020 and unrealized losses of $25.9 million in 2019 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) 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 $13.1 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, Forbes magazine included United in its inaugural list of the World’s Best Banks, and in 2020, recognized United for the seventh consecutive year on its list of the 100 Best Banks in America.  United Community Bank also received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. 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,” “pre-tax pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets -  pre-tax pre-provision, excluding merger-related and other charges,” “return on assets – pre-tax pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

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