United Community Banks, Inc. Reports First Quarter Results

EPS of $0.82, Return on Assets of 1.62% and Return on Common Equity of 15.4%

Blairsville, Georgia, UNITED STATES


GREENVILLE, S.C., April 20, 2021 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the first quarter reached a record $73.7 million and pre-tax, pre-provision income was $81.6 million. The quarter benefited from an allowance release of $12.3 million, as economic conditions and forecasts continue to improve. Diluted earnings per share of $0.82 for the quarter represented an increase of $0.42 or 105%, from the first quarter a year ago, and represented an increase of $0.16 or 24% over the fourth quarter of 2020. On an operating basis, United’s diluted earnings per share of $0.83 was an increase of 102% over the year ago quarter. United’s GAAP return on assets (ROA) was 1.62% and its return on common equity was 15.4% for the quarter. On an operating basis, United’s ROA was 1.65% and its return on tangible common equity was 19.7%. On a pre-tax, pre-provision basis, return on assets was 1.83% for the quarter.

Chairman and CEO Lynn Harton stated, “We continue to have strong performance across our businesses and markets, driven by an improving economy, southeastern markets that are outperforming national averages, and great execution by our bankers. Loan growth, while slower than the previous two quarters, continues to be positive and deposit growth continues at a strong pace. Credit results were outstanding and we believe the record stimulus, strong liquidity levels of consumers and businesses, and pent up demand has the potential to deliver strong economic growth for several quarters.”

Total loans increased by $308 million during the quarter—impacted by a $237 million increase in SBA Paycheck Protection Program (PPP) loans. During the quarter, United funded nearly 5,100 loans totaling $518 million, and had $311 million in PPP loans forgiven. Excluding the effect of PPP loans, core organic loan growth was 3% annualized. Core transaction deposits grew by $948 million during the quarter, or 33% annualized, and United’s cost of deposits decreased by 3 basis points to 0.14%. The net interest margin decreased by 33 basis points from the fourth quarter due mainly to a $9.5 million decline in the recognition of PPP fees, as well as $1.8 million less purchased loan accretion. Excluding these items, the net interest margin decreased by approximately 7 basis points from the fourth quarter due to a combination of factors, including lower overall market rates and increased liquidity.

Mr. Harton concluded, “We are excited about the ongoing opportunities in our markets and look forward to the rest of 2021. I also want to recognize our entire team for their performance. Earlier this quarter, Forbes recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. Forbes’ ranks the banks based on growth, credit quality and profitability and United was again a standout. I am incredibly proud of our employees who make this type of recognition possible through their tireless dedication to our customers, our culture and fulfilling our performance mission.”

First Quarter 2021 Financial Highlights:

  • Net income of $73.7 million and pre-tax, pre-provision income of $81.6 million
  • EPS increased by 105% compared to last year on a GAAP basis and 102% on an operating basis; compared to fourth quarter 2020, EPS increased by 24% on a GAAP basis and 22% on an operating basis
  • Return on assets of 1.62%, or 1.65% on an operating basis
  • Pre-tax, pre-provision return on assets of 1.80%, or 1.83% on an operating basis
  • Return on common equity of 15.4%
  • Return on tangible common equity of 19.7% on an operating basis
  • A release of provision for credit losses of $12.3 million, which reduced the allowance for loan losses to 1.09% (1.18%, excluding PPP loans) from 1.20% in the fourth quarter
  • Loan production of $1.5 billion, resulting in core loan growth of 3%, annualized for the quarter, excluding the impact of $518 million in new PPP loans and $311 million in PPP loans being forgiven
  • Core transaction deposits were up $948 million, which represents a 33% annualized growth rate for the quarter
  • Net interest margin of 3.22% was down 33 basis points from the fourth quarter, mainly due to the impact of accelerated PPP fees during the fourth quarter
  • Record mortgage closings of $666 million and mortgage rate locks of $993 million, compared to $388 million and $801 million, respectively, a year ago
  • Noninterest income was up $3.3 million on a linked quarter basis, primarily driven by higher mortgage loan gains and related fees
  • Noninterest expenses decreased by $11.3 million compared to the fourth quarter mostly due to funding for the United Community Bank Foundation of $8.5 million in the fourth quarter
  • Efficiency ratio of 53.6%, or 52.7% on an operating basis
  • Net recoveries of $305,000, or one basis point as a percent of average loans, down 6 basis points from the fourth quarter
  • Nonperforming assets of 0.30% of total assets, down 5 basis points compared to December 31, 2020
  • Total loan deferrals of $48 million or 0.4% of the total loan portfolio compared to $71 million or 0.6% in the fourth quarter
  • Quarterly common shareholder dividend of $0.19 per share declared during the quarter, an increase of 6% year-over-year
  • Successfully completed the operational conversion of Seaside during the quarter

Conference Call

United will hold a conference call on Wednesday, April 21, 2021, 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 9792368. 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

  2021 2020 First Quarter
2021 - 2020
Change
(in thousands, except per share data) First
Quarter
 Fourth
Quarter
 Third
Quarter
 Second
Quarter
 First
Quarter
 
INCOME SUMMARY            
Interest revenue $141,542   $156,071   $141,773   $123,605   $136,547    
Interest expense 9,478   10,676   13,319   14,301   17,941    
Net interest revenue 132,064   145,395   128,454   109,304   118,606   11%
(Release of) provision for credit losses (12,281)  2,907   21,793   33,543   22,191    
Noninterest income 44,705   41,375   48,682   40,238   25,814   73 
Total revenue 189,050   183,863   155,343   115,999   122,229   55 
Expenses 95,194   106,490   95,981   83,980   81,538   17 
Income before income tax expense 93,856   77,373   59,362   32,019   40,691   131 
Income tax expense 20,150   17,871   11,755   6,923   8,807   129 
Net income 73,706   59,502   47,607   25,096   31,884   131 
Merger-related and other charges 1,543   2,452   3,361   397   808    
Income tax benefit of merger-related and other charges (335)  (552)  (519)  (87)  (182)   
Net income - operating (1) $74,914   $61,402   $50,449   $25,406   $32,510   130 
             
Pre-tax pre-provision income (5) $81,575   $80,280   $81,155   $65,562   $62,882   30 
             
PERFORMANCE MEASURES            
Per common share:            
Diluted net income - GAAP $0.82   $0.66   $0.52   $0.32   $0.40   105 
Diluted net income - operating (1) 0.83   0.68   0.55   0.32   0.41   102 
Cash dividends declared 0.19   0.18   0.18   0.18   0.18   6 
Book value 22.15   21.90   21.45   21.22   20.80   6 
Tangible book value (3) 17.83   17.56   17.09   16.95   16.52   8 
Key performance ratios:            
Return on common equity - GAAP (2)(4) 15.37 % 12.36 % 10.06 % 6.17 % 7.85 %  
Return on common equity - operating (1)(2)(4) 15.63   12.77   10.69   6.25   8.01    
Return on tangible common equity - operating (1)(2)(3)(4) 19.68   16.23   13.52   8.09   10.57    
Return on assets - GAAP (4) 1.62   1.30   1.07   0.71   0.99    
Return on assets - operating (1)(4) 1.65   1.34   1.14   0.72   1.01    
Return on assets - pre-tax pre-provision (4)(5) 1.80   1.77   1.86   1.86   1.95    
Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5) 1.83   1.82   1.93   1.87   1.98    
Net interest margin (fully taxable equivalent) (4) 3.22   3.55   3.27   3.42   4.07    
Efficiency ratio - GAAP 53.55   56.73   54.14   55.86   56.15    
Efficiency ratio - operating (1) 52.68   55.42   52.24   55.59   55.59    
Equity to total assets 10.95   11.29   11.47   11.81   12.54    
Tangible common equity to tangible assets (3) 8.57   8.81   8.89   9.12   10.22    
             
ASSET QUALITY            
Nonperforming loans $55,900   $61,599   $49,084   $48,021   $36,208   54 
Foreclosed properties 596   647   953   477   475    
Total nonperforming assets ("NPAs") 56,496   62,246   50,037   48,498   36,683   54 
Allowance for credit losses - loans 126,866   137,010   134,256   103,669   81,905   55 
Net charge-offs (305)  1,515   2,538   6,149   8,114    
Allowance for credit losses - loans to loans 1.09 % 1.20 % 1.14 % 1.02 % 0.92 %  
Net charge-offs to average loans (4) (0.01)  0.05   0.09   0.25   0.37    
NPAs to loans and foreclosed properties 0.48   0.55   0.42   0.48   0.41    
NPAs to total assets 0.30   0.35   0.29   0.32   0.28    
             
AVERAGE BALANCES ($ in millions)            
Loans $11,433   $11,595   $11,644   $9,773   $8,829   29 
Investment securities 3,991   3,326   2,750   2,408   2,520   58 
Earning assets 16,782   16,394   15,715   12,958   11,798   42 
Total assets 18,023   17,698   17,013   14,173   12,944   39 
Deposits 15,366   15,057   14,460   12,071   10,915   41 
Shareholders’ equity 2,025   1,994   1,948   1,686   1,653   23 
Common shares - basic (thousands) 87,322   87,258   87,129   78,920   79,340   10 
Common shares - diluted (thousands) 87,466   87,333   87,205   78,924   79,446   10 
             
AT PERIOD END ($ in millions)            
Loans $11,679   $11,371   $11,799   $10,133   $8,935   31 
Investment securities 4,332   3,645   3,089   2,432   2,540   71 
Total assets 18,557   17,794   17,153   15,005   13,086   42 
Deposits 15,993   15,232   14,603   12,702   11,035   45 
Shareholders’ equity 2,031   2,008   1,967   1,772   1,641   24 
Common shares outstanding (thousands) 86,777   86,675   86,611   78,335   78,284   11 

(1) Excludes merger-related and other charges. (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) Excludes income tax expense and provision for credit losses.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information

  2021 2020
(in thousands, except per share data) First
Quarter
 Fourth
Quarter
 Third
Quarter
 Second
Quarter
 First
Quarter
           
Expense reconciliation          
Expenses (GAAP) $95,194   $106,490   $95,981   $83,980   $81,538  
Merger-related and other charges (1,543)  (2,452)  (3,361)  (397)  (808) 
Expenses - operating $93,651   $104,038   $92,620   $83,583   $80,730  
           
Net income reconciliation          
Net income (GAAP) $73,706   $59,502   $47,607   $25,096   $31,884  
Merger-related and other charges 1,543   2,452   3,361   397   808  
Income tax benefit of merger-related and other charges (335)  (552)  (519)  (87)  (182) 
Net income - operating $74,914   $61,402   $50,449   $25,406   $32,510  
           
Net income to pre-tax pre-provision income reconciliation          
Net income (GAAP) $73,706   $59,502   $47,607   $25,096   $31,884  
Income tax expense 20,150   17,871   11,755   6,923   8,807  
(Release of) provision for credit losses (12,281)  2,907   21,793   33,543   22,191  
Pre-tax pre-provision income $81,575   $80,280   $81,155   $65,562   $62,882  
           
Diluted income per common share reconciliation          
Diluted income per common share (GAAP) $0.82   $0.66   $0.52   $0.32   $0.40  
Merger-related and other charges, net of tax 0.01   0.02   0.03      0.01  
Diluted income per common share - operating $0.83   $0.68   $0.55   $0.32   $0.41  
           
Book value per common share reconciliation          
Book value per common share (GAAP) $22.15   $21.90   $21.45   $21.22   $20.80  
Effect of goodwill and other intangibles (4.32)  (4.34)  (4.36)  (4.27)  (4.28) 
Tangible book value per common share $17.83   $17.56   $17.09   $16.95   $16.52  
           
Return on tangible common equity reconciliation          
Return on common equity (GAAP) 15.37 % 12.36 % 10.06 % 6.17 % 7.85 %
Merger-related and other charges, net of tax 0.26   0.41   0.63   0.08   0.16  
Return on common equity - operating 15.63   12.77   10.69   6.25   8.01  
Effect of goodwill and other intangibles 4.05   3.46   2.83   1.84   2.56  
Return on tangible common equity - operating 19.68 % 16.23 % 13.52 % 8.09 % 10.57 %
           
Return on assets reconciliation          
Return on assets (GAAP) 1.62 % 1.30 % 1.07 % 0.71 % 0.99 %
Merger-related and other charges, net of tax 0.03   0.04   0.07   0.01   0.02  
Return on assets - operating 1.65 % 1.34 % 1.14 % 0.72 % 1.01 %
           
Return on assets to return on assets- pre-tax pre-provision reconciliation          
Return on assets (GAAP) 1.62 % 1.30 % 1.07 % 0.71 % 0.99 %
Income tax expense 0.46   0.40   0.28   0.20   0.27  
(Release of) provision for credit losses (0.28)  0.07   0.51   0.95   0.69  
Return on assets - pre-tax, pre-provision 1.80   1.77   1.86   1.86   1.95  
Merger-related and other charges 0.03   0.05   0.07   0.01   0.03  
Return on assets - pre-tax pre-provision, excluding merger-related and other charges 1.83 % 1.82 % 1.93 % 1.87 % 1.98 %
           
Efficiency ratio reconciliation          
Efficiency ratio (GAAP) 53.55 % 56.73 % 54.14 % 55.86 % 56.15 %
Merger-related and other charges (0.87)  (1.31)  (1.90)  (0.27)  (0.56) 
Efficiency ratio - operating 52.68 % 55.42 % 52.24 % 55.59 % 55.59 %
           
Tangible common equity to tangible assets reconciliation          
Equity to total assets (GAAP) 10.95 % 11.29 % 11.47 % 11.81 % 12.54 %
Effect of goodwill and other intangibles (1.86)  (1.94)  (2.02)  (2.05)  (2.32) 
Effect of preferred equity (0.52)  (0.54)  (0.56)  (0.64)    
Tangible common equity to tangible assets 8.57 % 8.81 % 8.89 % 9.12 % 10.22 %


UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End

 2021 2020 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$2,107  $2,090  $2,009  $1,759  $1,703  $17   $404  
Income producing commercial RE2,599  2,541  2,493  2,178  2,065  58   534  
Commercial & industrial1,760  1,853  1,788  1,219  1,310  (93)  450  
Paycheck protection program883  646  1,317  1,095    237   883  
Commercial construction960  967  987  946  959  (7)  1  
Equipment financing913  864  823  779  761  49   152  
Total commercial9,222  8,961  9,417  7,976  6,798  261   2,424  
Residential mortgage1,362  1,285  1,270  1,152  1,128  77   234  
Home equity lines of credit679  697  707  654  668  (18)  11  
Residential construction272  281  257  230  216  (9)  56  
Consumer144  147  148  121  125  (3)  19  
Total loans$11,679  $11,371  $11,799  $10,133  $8,935  $308   $2,744  
              
LOANS BY MARKET (1)             
North Georgia$982  $955  $945  $951  $958  $27   $24  
Atlanta1,953  1,889  1,853  1,852  1,820  64   133  
North Carolina1,326  1,281  1,246  1,171  1,124  45   202  
Coastal Georgia597  617  614  618  604  (20)  (7) 
Gainesville222  224  229  233  235  (2)  (13) 
East Tennessee398  415  420  433  425  (17)  (27) 
South Carolina1,997  1,947  1,870  1,778  1,774  50   223  
Florida1,160  1,435  1,453      (275)  1,160  
Commercial Banking Solutions3,044  2,608  3,169  3,097  1,995  436   1,049  
Total loans$11,679  $11,371  $11,799  $10,133  $8,935  $308   $2,744  

(1) Certain loans previously included in the Florida geographic market have been reclassified to Commercial Banking Solutions following Seaside’s core systems conversion in the first quarter of 2021.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

  2021 2020      
(in thousands) First
Quarter
 Fourth
Quarter
 Third
Quarter
      
NONACCRUAL LOANS            
Owner occupied RE $7,908  $8,582  $11,075       
Income producing RE 13,740  15,149  12,230       
Commercial & industrial 13,864  16,634  3,534       
Commercial construction 1,984  1,745  1,863       
Equipment financing 2,171  3,405  3,137       
Total commercial 39,667  45,515  31,839       
Residential mortgage 14,050  12,858  13,864       
Home equity lines of credit 1,707  2,487  2,642       
Residential construction 322  514  479       
Consumer 154  225  260       
Total $55,900  $61,599  $49,084       


  2021 2020
  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 $(240)  (0.05)% $(277)  (0.05)% $(725)  (0.14)%
Income producing RE 991   0.16   (1,718)  (0.27)  1,785   0.29  
Commercial & industrial (2,753)  (0.44)  2,294   0.33   (105)  (0.01) 
Commercial construction 22   0.01   (129)  (0.05)  (171)  (0.07) 
Equipment financing 1,511   0.70   1,595   0.75   1,993   0.93  
Total commercial (469)  (0.02)  1,765   0.08   2,777   0.12  
Residential mortgage 92   0.03   (25)  (0.01)  (35)  (0.01) 
Home equity lines of credit (73)  (0.04)  (151)  (0.09)  (125)  (0.07) 
Residential construction (60)  (0.09)  (47)  (0.07)       
Consumer 205   0.58   (27)  (0.07)  (79)  (0.22) 
Total $(305)  (0.01)  $1,515   0.05   $2,538   0.09  
             
(1) Annualized.            


UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data) March 31,
2021
 December 31,
2020
ASSETS    
Cash and due from banks $126,164   $148,896  
Interest-bearing deposits in banks 1,207,949   1,459,723  
Cash and cash equivalents 1,334,113   1,608,619  
Debt securities available-for-sale 3,744,280   3,224,721  
Debt securities held-to-maturity (fair value $586,828 and $437,193) 587,696   420,361  
Loans held for sale at fair value 164,979   105,433  
Loans and leases held for investment 11,678,544   11,370,815  
Less allowance for credit losses - loans and leases (126,866)  (137,010) 
Loans and leases, net 11,551,678   11,233,805  
Premises and equipment, net 216,752   218,489  
Bank owned life insurance 202,817   201,969  
Accrued interest receivable 46,278   47,672  
Net deferred tax asset 39,338   38,411  
Derivative financial instruments 63,897   86,666  
Goodwill and other intangible assets, net 380,838   381,823  
Other assets 224,242   226,405  
Total assets $18,556,908   $17,794,374  
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
Deposits:    
Noninterest-bearing demand $6,058,439   $5,390,291  
NOW and interest-bearing demand 3,417,915   3,346,490  
Money market 3,677,630   3,550,335  
Savings 1,051,381   950,854  
Time 1,587,653   1,704,290  
Brokered 200,202   290,098  
Total deposits 15,993,220   15,232,358  
Long-term debt 311,591   326,956  
Derivative financial instruments 33,455   29,003  
Accrued expenses and other liabilities 187,558   198,527  
Total liabilities 16,525,824   15,786,844  
Shareholders' equity:    
Preferred stock; $1 par value; 10,000,000 shares authorized;
Series I, $25,000 per share liquidation preference; 4,000 shares issued and outstanding
 96,422   96,422  
Common stock, $1 par value; 150,000,000 shares authorized;
86,776,508 and 86,675,279 shares issued and outstanding
 86,777   86,675  
Common stock issuable; 565,904 and 600,834 shares 10,485   10,855  
Capital surplus 1,640,583   1,638,999  
Retained earnings 192,185   136,869  
Accumulated other comprehensive income 4,632   37,710  
Total shareholders' equity 2,031,084   2,007,530  
Total liabilities and shareholders' equity $18,556,908   $17,794,374  


UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)

  Three Months Ended
March 31,
(in thousands, except per share data) 2021 2020
Interest revenue:    
Loans, including fees $125,726   $118,063 
Investment securities, including tax exempt of $2,150 and $1,523, respectively 15,448   17,394 
Deposits in banks and short-term investments 368   1,090 
Total interest revenue 141,542   136,547 
     
Interest expense:    
Deposits:    
NOW and interest-bearing demand 1,486   2,978 
Money market 1,804   4,531 
Savings 49   35 
Time 1,880   7,531 
Deposits 5,219   15,075 
Short-term borrowings    1 
Federal Home Loan Bank advances 2   1 
Long-term debt 4,257   2,864 
Total interest expense 9,478   17,941 
Net interest revenue 132,064   118,606 
(Release of) provision for credit losses (12,281)  22,191 
Net interest revenue after provision for credit losses 144,345   96,415 
     
Noninterest income:    
Service charges and fees 7,570   8,638 
Mortgage loan gains and other related fees 22,572   8,310 
Wealth management fees 3,505   1,640 
Gains from sales of other loans, net 1,030   1,674 
Other 10,028   5,552 
Total noninterest income 44,705   25,814 
Total revenue 189,050   122,229 
     
Noninterest expenses:    
Salaries and employee benefits 60,585   51,358 
Communications and equipment 7,203   5,946 
Occupancy 6,956   5,714 
Advertising and public relations 1,199   1,274 
Postage, printing and supplies 1,822   1,670 
Professional fees 4,234   4,097 
Lending and loan servicing expense 2,877   2,293 
Outside services - electronic banking 2,218   1,832 
FDIC assessments and other regulatory charges 1,896   1,484 
Amortization of intangibles 985   1,040 
Merger-related and other charges 1,543   808 
Other 3,676   4,022 
Total noninterest expenses 95,194   81,538 
Net income before income taxes 93,856   40,691 
Income tax expense 20,150   8,807 
Net income 73,706   31,884 
Preferred stock dividends 1,719    
Undistributed earnings allocated to participating securities 462   243 
Net income available to common shareholders $71,525   $31,641 
     
Net income per common share:    
Basic $0.82   $0.40 
Diluted 0.82   0.40 
Weighted average common shares outstanding:    
Basic 87,322   79,340 
Diluted 87,466   79,446 


Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
     
  2021 2020
(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) $11,432,908   $125,122  4.44% $8,828,880   $117,796  5.37%
Taxable securities (3) 3,686,405   13,298  1.44  2,357,635   15,871  2.69 
Tax-exempt securities (FTE) (1)(3) 304,983   2,888  3.79  162,253   2,045  5.04 
Federal funds sold and other interest-earning assets 1,357,890   1,222  0.36  448,775   1,632  1.46 
Total interest-earning assets (FTE) 16,782,186   142,530  3.44  11,797,543   137,344  4.68 
             
Noninterest-earning assets:            
Allowance for credit losses (143,703)      (69,777)     
Cash and due from banks 140,292       128,254      
Premises and equipment 221,411       219,243      
Other assets (3) 1,023,275       868,452      
Total assets $18,023,461       $12,943,715      
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW and interest-bearing demand $3,331,043   1,486  0.18  $2,412,733   2,978  0.50 
Money market 3,732,988   1,804  0.20  2,340,723   4,531  0.78 
Savings 989,584   49  0.02  712,110   35  0.02 
Time 1,642,423   1,588  0.39  1,841,552   7,250  1.58 
Brokered time deposits 75,259   292  1.57  80,821   281  1.40 
Total interest-bearing deposits 9,771,297   5,219  0.22  7,387,939   15,075  0.82 
Federal funds purchased and other borrowings 12       396   1  1.02 
Federal Home Loan Bank advances 3,333   2  0.24  165   1  2.44 
Long-term debt 317,172   4,257  5.44  212,762   2,864  5.41 
Total borrowed funds 320,517   4,259  5.39  213,323   2,866  5.40 
Total interest-bearing liabilities 10,091,814   9,478  0.38  7,601,262   17,941  0.95 
             
Noninterest-bearing liabilities:            
Noninterest-bearing deposits 5,594,394       3,527,385      
Other liabilities 312,610       162,187      
Total liabilities 15,998,818       11,290,834      
Shareholders' equity 2,024,643       1,652,881      
Total liabilities and shareholders' equity $18,023,461       $12,943,715      
             
Net interest revenue (FTE)   $133,052      $119,403   
Net interest-rate spread (FTE)     3.06%     3.73%
Net interest margin (FTE) (4)     3.22%     4.07%


(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 $58.3 million and $52.9 million in 2021 and 2020, respectively, 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) (United) provides a full range of banking, wealth management and mortgage services for relationship oriented consumers and business owners. The company, known as “The Bank That Service Built” has been recognized by JD Power, Forbes, and CSP for having outstanding customer service ratings for many years. United has $18.6 billion in assets and 161 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. United was also named "Best Banks to Work For" by American Banker in 2020 for the fourth year in a row based on employee satisfaction. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. United also received five Greenwich Excellence Awards in 2020 for excellence in Small Business Banking, including a national award for Overall Satisfaction. Additional information about United 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