Exhibit 99.1
For Immediate Release
For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
UNITED COMMUNITY BANKS, INC.
ANNOUNCES FIRST QUARTER EARNINGS
Earnings per diluted share up 42 percent to 47 cents from first quarter 2017
Excluding merger-related and other non-operating charges,
diluted operating earnings per share up 28 percent, to 50 cents
● | Return on assets of 1.26 percent, or 1.33 percent excluding merger-related and other charges |
● | Return on common equity of 11.1 percent, return on tangible common equity of 15.3 percent excluding merger-related and other charges |
● | Net interest revenue of $103.3 million, up $19.7 million or 24 percent from year ago |
● | Net interest margin of 3.80 percent, up 17 basis points from fourth quarter 2017 and up 35 basis points from year ago |
● | Efficiency ratio of 57.8 percent, or 55.8 percent excluding merger-related and other charges |
● | Completed the acquisition of Navitas Credit Corp. during the quarter |
BLAIRSVILLE, GA – April 24, 2018 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its first quarter 2018 financial results reflecting solid margin improvement, effective and disciplined expense management, an acceleration of loan growth and the continuation of sound credit quality. Net income was $37.7 million, or 47 cents per diluted share, compared with $23.5 million, or 33 cents per diluted share, for the first quarter of 2017.
On an operating basis, net income rose to $39.7 million for the first quarter of 2018 compared with $28.2 million for the first quarter of 2017. First quarter 2018 operating net income excludes pre-tax merger-related charges totaling $2.50 million and pre-tax charges related to branch closures completed during the quarter of $147,000. The income tax benefit from these non-operating charges was $628,000. First quarter 2017 operating net income excludes pre-tax merger-related charges of $1.17 million and pre-tax charges related to branch closures of $831,000. The income tax benefit associated with the charges was $758,000. Also excluded from first quarter 2017 operating earnings is a non-cash tax charge of $3.4 million related to the cancellation of interest rate swaps that were designated as cash flow hedges. The non-cash tax charge was previously included in other comprehensive income until the swaps matured or were canceled.
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At March 31, 2018, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 11.7 percent; Total Risk-Based of 13.6 percent; Common Equity Tier 1 Risk-Based of 11.3 percent, and Tier 1 Leverage of 9.1 percent.
“Our first quarter earnings are a strong start to what we expect will be another exceptional year for United Community Banks, Inc.,” said Jimmy Tallent, chairman and chief executive officer. “Our bankers excelled in nearly every financial measure, reporting solid improvement in return on assets, return on tangible common equity, operating efficiency and more. Operating return on assets was 1.33% for the first quarter, up 23 basis points from fourth quarter and only seven basis points from our goal of 1.40%. Our operating efficiency ratio was 55.7%, our best ever, which is a credit to our bankers who work hard to provide the bestcustomer service in an efficient and cost-effective manner.”
Tallent continued, “In the first quarter, we not only announced a merger with NLFC Holdings Corp. and its wholly-owned subsidiary, Navitas Credit Corp., but we completed the merger on February 1. With headquarters in Ponte Vedra, Florida, Navitas is a premier specialty lender providing equipment finance services to small and medium-sized businesses nationwide that will continue to operate under the Navitas name. This fast-growing company is a solid strategic addition to our existing specialty and commercial lending businesses and enables us to further expand our client offerings. This partnership brings exceptional growth and a significant profitability enhancement to United and is a solid win for both of us. I am excited to welcome this talented team of industry veterans to United Community Bank.
“First quarter loan production was $665.8 million with $427 million originating from our community banks and $238 million from our Commercial Banking Solutions group, which now includes our newly acquired Navitas subsidiary,” Tallent added. “Linked-quarter loans were up $448 million, mostly reflecting the $379 million in net loans received through our acquisition of Navitas. Our indirect auto loan portfolio was down $42.3 million from fourth quarter, reflecting our decision to suspend indirect auto loan purchases. Excluding the reduction in indirect auto loans and the loans acquired through the Navitas acquisition, loan growth was up at an annualized rate of approximately 6 percent from the fourth quarter.”
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First quarter net interest revenue totaled $103.3 million, up $19.7 million from the first quarter of 2017 and up $5.78 million from the fourth quarter of 2017. The increases from both periods reflect acquisitions, business growth and net interest margin expansions of 35 basis points from a year ago and 17 basis points from the fourth quarter of 2017. Rising short-term interest rates and the acquisitions of Four Oaks Bank & Trust Company on November 1, 2017, and Navitas on February 1, 2018 contributed to the linked quarter net interest margin expansion as well as the increase in net interest revenue. The acquisition of Horry County State Bank on July 31, 2017 also contributed to the increase from a year ago. Acquired company results are included in United’s financial results beginning on their respective acquisition dates.
The first quarter provision for credit losses was $3.8 million compared to net charge-offs of $1.5 million. Included in the first quarter provision for credit losses was $2.3 million resulting from including Navitas’ loans and leases in our allowance for loan and lease losses model. Because Navitas’ loans and leases were recorded at a net premium of approximately $5.62 million, the allowance for loan and lease losses model required us to establish an allowance sufficient to cover credit losses inherent in the Navitas portfolio. This additional provision related to the Navitas loans and leases is in addition to $3.9 million of non-accretable discount included in the fair value mark on Navitas’ acquired loans and leases providing a conservative $6.2 million of loss absorbing capacity on the acquired Navitas portfolio.
As mentioned, first quarter net charge-offs totaled $1.5 million, down from $1.7 million in the first quarter of 2017 and up $440,000 from the fourth quarter of 2017. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were 0.24 percent of total assets at March 31, 2018, compared with 0.23 percent at both December 31, 2017 and March 31, 2017.
“Credit quality remains strong and steady as indicated by the low level of net charge-offs,” Tallent commented. “Our credit quality indicators show no indication of credit deterioration and our outlook is for that to continue. Although our first quarter provision was elevated due to the acquisition of Navitas, we expect our provision levels to return to the range of our more recent quarterly experience with gradual increases each quarter due to loan growth. We expect our allowance and the related ratio to total loans may continue to decline slightly.”
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First quarter fee revenue totaled $22.4 million, up $322,000 from a year ago and $468,000 from the fourth quarter of 2017. Included in first quarter 2018 fee revenue are $940,000 in losses from securities sales. The securities losses were part of a larger balance sheet management strategy that included the cancellation of $289 million notional in interest rate caps as well as the partial cancellation of other hedging instruments. The derivative cancellations resulted in gains of $1.16 million, which are included in other fee revenue. The securities losses and gains from derivative activities are mostly offsetting.
Mortgage fees were up $935,000 from a year ago and $474,000 from the fourth quarter of 2017, reflecting strong origination and rate lock activity as well as a favorable mark on our mortgage servicing asset. In the first quarter we closed 799 loans totaling $191 million compared with 795 loans totaling $197 million in the fourth quarter and 697 loans totaling $151 million in the first quarter of 2017.
Operating expenses were $73.5 million for the first quarter, compared with $62.8 million for the first quarter of 2017 and $75.9 million for the fourth quarter. Included in the first quarter’s operating expenses are $2.65 million in merger-related and branch closure expenses. We also had merger-related and branch closure charges of $2.05 million in the first quarter of 2017, and $7.36 million in merger-related expenses in the fourth quarter of 2017. Excluding these charges, first quarter operating expenses were $70.8 million compared with $68.5 million for the fourth quarter and $60.8 million a year ago. The increases from a year ago and from the fourth quarter of 2017 primarily result from the acquisitions of Navitas on February 1, 2018, Four Oaks Bank & Trust Company on November 1, 2017 and Horry County State Bank on July 31, 2017. Operating expenses of acquired companies are included in United’s consolidated operating expenses beginning on their respective acquisition dates.
Tallent concluded, “As our first quarter financial results demonstrate, we are off to a great start for 2018. United Community Banks operates in some of the most attractive markets in the United States, has an extraordinarily talented management team and the best bankers in the business. I could not be more confident in the future of this company and I eagerly anticipate the successes that will be achieved in the quarters ahead. Every day our bankers demonstrate their passion and commitment which drive our performance and ensure our success. This is a legacy I take great pride in.”
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Conference Call
United will hold a conference call, Wednesday, April 25, 2018, 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 8494547. 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.
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company based in Blairsville, Georgia with $12.3 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 151 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. 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 the last four years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2018, for the fifth consecutive year,Forbes magazine included United on its list of the 100 Best Banks in America. Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.
Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted share,” “operating earnings per diluted share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating dividend payout ratio,” “operating efficiency ratio,” “average tangible equity to average assets,” “average tangible common equity to average assets” and “tangible common equity to risk-weighted assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.
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Caution About Forward-Looking Statements
Certain Statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in United’s Form 10-K for the year ended December 31, 2017 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
First | ||||||||||||||||||||||||
2018 | 2017 | Quarter | ||||||||||||||||||||||
First | Fourth | Third | Second | First | 2018-2017 | |||||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||
Interest revenue | $ | 115,290 | $ | 106,757 | $ | 98,839 | $ | 93,166 | $ | 90,958 | ||||||||||||||
Interest expense | 12,005 | 9,249 | 9,064 | 8,018 | 7,404 | |||||||||||||||||||
Net interest revenue | 103,285 | 97,508 | 89,775 | 85,148 | 83,554 | 24 | % | |||||||||||||||||
Provision for credit losses | 3,800 | 1,200 | 1,000 | 800 | 800 | |||||||||||||||||||
Fee revenue | 22,396 | 21,928 | 20,573 | 23,685 | 22,074 | 1 | ||||||||||||||||||
Total revenue | 121,881 | 118,236 | 109,348 | 108,033 | 104,828 | 16 | ||||||||||||||||||
Expenses | 73,475 | 75,882 | 65,674 | 63,229 | 62,826 | 17 | ||||||||||||||||||
Income before income tax expense | 48,406 | 42,354 | 43,674 | 44,804 | 42,002 | 15 | ||||||||||||||||||
Income tax expense | 10,748 | 54,270 | 15,728 | 16,537 | 18,478 | (42 | ) | |||||||||||||||||
Net income | 37,658 | (11,916 | ) | 27,946 | 28,267 | 23,524 | 60 | |||||||||||||||||
Merger-related and other charges | 2,646 | 7,358 | 3,420 | 1,830 | 2,054 | |||||||||||||||||||
Income tax benefit of merger-related and other charges | (628 | ) | (1,165 | ) | (1,147 | ) | (675 | ) | (758 | ) | ||||||||||||||
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act | - | 38,199 | - | - | - | |||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | 3,400 | |||||||||||||||||||
Net income - operating(1) | $ | 39,676 | $ | 32,476 | $ | 30,219 | $ | 29,422 | $ | 28,220 | 41 | |||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||
Per common share: | �� | |||||||||||||||||||||||
Diluted net income - GAAP | $ | .47 | $ | (.16 | ) | $ | .38 | $ | .39 | $ | .33 | 42 | ||||||||||||
Diluted net income - operating (1) | .50 | .42 | .41 | .41 | .39 | 28 | ||||||||||||||||||
Cash dividends declared | .12 | .10 | .10 | .09 | .09 | 33 | ||||||||||||||||||
Book value | 17.02 | 16.67 | 16.50 | 15.83 | 15.40 | 11 | ||||||||||||||||||
Tangible book value(3) | 12.96 | 13.65 | 14.11 | 13.74 | 13.30 | (3 | ) | |||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||
Return on common equity - GAAP(2)(4) | 11.11 | % | (3.57 | )% | 9.22 | % | 9.98 | % | 8.54 | % | ||||||||||||||
Return on common equity - operating(1)(2)(4) | 11.71 | 9.73 | 9.97 | 10.39 | 10.25 | |||||||||||||||||||
Return on tangible common equity - operating(1)(2)(3)(4) | 15.26 | 11.93 | 11.93 | 12.19 | 12.10 | |||||||||||||||||||
Return on assets - GAAP(4) | 1.26 | (.40 | ) | 1.01 | 1.06 | .89 | ||||||||||||||||||
Return on assets - operating(1)(4) | 1.33 | 1.10 | 1.09 | 1.10 | 1.07 | |||||||||||||||||||
Dividend payout ratio - GAAP | 25.53 | (62.50 | ) | 26.32 | 23.08 | 27.27 | ||||||||||||||||||
Dividend payout ratio - operating(1) | 24.00 | 23.81 | 24.39 | 21.95 | 23.08 | |||||||||||||||||||
Net interest margin (fully taxable equivalent)(4) | 3.80 | 3.63 | 3.54 | 3.47 | 3.45 | |||||||||||||||||||
Efficiency ratio - GAAP | 57.83 | 63.03 | 59.27 | 57.89 | 59.29 | |||||||||||||||||||
Efficiency ratio - operating (1) | 55.75 | 56.92 | 56.18 | 56.21 | 57.35 | |||||||||||||||||||
Average equity to average assets | 11.03 | 11.21 | 10.86 | 10.49 | 10.24 | |||||||||||||||||||
Average tangible equity to average assets(3) | 8.82 | 9.52 | 9.45 | 9.23 | 8.96 | |||||||||||||||||||
Average tangible common equity to average assets(3) | 8.82 | 9.52 | 9.45 | 9.23 | 8.96 | |||||||||||||||||||
Tangible common equity to risk-weighted assets(3)(5) | 11.26 | 12.05 | 12.80 | 12.44 | 12.07 | |||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||
Nonperforming loans | $ | 26,240 | $ | 23,658 | $ | 22,921 | $ | 23,095 | $ | 19,812 | 32 | |||||||||||||
Foreclosed properties | 2,714 | 3,234 | 2,736 | 2,739 | 5,060 | (46 | ) | |||||||||||||||||
Total nonperforming assets (NPAs) | 28,954 | 26,892 | 25,657 | 25,834 | 24,872 | 16 | ||||||||||||||||||
Allowance for loan losses | 61,085 | 58,914 | 58,605 | 59,500 | 60,543 | 1 | ||||||||||||||||||
Net charge-offs | 1,501 | 1,061 | 1,635 | 1,623 | 1,679 | (11 | ) | |||||||||||||||||
Allowance for loan losses to loans | .75 | % | .76 | % | .81 | % | .85 | % | .87 | % | ||||||||||||||
Net charge-offs to average loans(4) | .08 | .06 | .09 | .09 | .10 | |||||||||||||||||||
NPAs to loans and foreclosed properties | .35 | .35 | .36 | .37 | .36 | |||||||||||||||||||
NPAs to total assets | .24 | .23 | .23 | .24 | .23 | |||||||||||||||||||
AVERAGE BALANCES($ in millions) | ||||||||||||||||||||||||
Loans | $ | 7,993 | $ | 7,560 | $ | 7,149 | $ | 6,980 | $ | 6,904 | 16 | |||||||||||||
Investment securities | 2,870 | 2,991 | 2,800 | 2,775 | 2,822 | 2 | ||||||||||||||||||
Earning assets | 11,076 | 10,735 | 10,133 | 9,899 | 9,872 | 12 | ||||||||||||||||||
Total assets | 12,111 | 11,687 | 10,980 | 10,704 | 10,677 | 13 | ||||||||||||||||||
Deposits | 9,759 | 9,624 | 8,913 | 8,659 | 8,592 | 14 | ||||||||||||||||||
Shareholders’ equity | 1,336 | 1,310 | 1,193 | 1,123 | 1,093 | 22 | ||||||||||||||||||
Common shares - basic(thousands) | 79,205 | 76,768 | 73,151 | 71,810 | 71,700 | 10 | ||||||||||||||||||
Common shares - diluted(thousands) | 79,215 | 76,768 | 73,162 | 71,820 | 71,708 | 10 | ||||||||||||||||||
AT PERIOD END($ in millions) | ||||||||||||||||||||||||
Loans | $ | 8,184 | $ | 7,736 | $ | 7,203 | $ | 7,041 | $ | 6,965 | 18 | |||||||||||||
Investment securities | 2,731 | 2,937 | 2,847 | 2,787 | 2,767 | (1 | ) | |||||||||||||||||
Total assets | 12,264 | 11,915 | 11,129 | 10,837 | 10,732 | 14 | ||||||||||||||||||
Deposits | 9,993 | 9,808 | 9,127 | 8,736 | 8,752 | 14 | ||||||||||||||||||
Shareholders’ equity | 1,357 | 1,303 | 1,221 | 1,133 | 1,102 | 23 | ||||||||||||||||||
Common shares outstanding(thousands) | 79,123 | 77,580 | 73,403 | 70,981 | 70,973 | 11 |
(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) | First quarter 2018 ratio is preliminary. |
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UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2018 | 2017 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Expense reconciliation | ||||||||||||||||||||
Expenses (GAAP) | $ | 73,475 | $ | 75,882 | $ | 65,674 | $ | 63,229 | $ | 62,826 | ||||||||||
Merger-related and other charges | (2,646 | ) | (7,358 | ) | (3,420 | ) | (1,830 | ) | (2,054 | ) | ||||||||||
Expenses - operating | $ | 70,829 | $ | 68,524 | $ | 62,254 | $ | 61,399 | $ | 60,772 | ||||||||||
Net income reconciliation | ||||||||||||||||||||
Net income (GAAP) | $ | 37,658 | $ | (11,916 | ) | $ | 27,946 | $ | 28,267 | $ | 23,524 | |||||||||
Merger-related and other charges | 2,646 | 7,358 | 3,420 | 1,830 | 2,054 | |||||||||||||||
Income tax benefit of merger-related and other charges | (628 | ) | (1,165 | ) | (1,147 | ) | (675 | ) | (758 | ) | ||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | 38,199 | - | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | 3,400 | |||||||||||||||
Net income - operating | $ | 39,676 | $ | 32,476 | $ | 30,219 | $ | 29,422 | $ | 28,220 | ||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||
Diluted income per common share (GAAP) | $ | .47 | $ | (.16 | ) | $ | .38 | $ | .39 | $ | .33 | |||||||||
Merger-related and other charges | .03 | .08 | .03 | .02 | .01 | |||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | .50 | - | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | .05 | |||||||||||||||
Diluted income per common share - operating | $ | .50 | $ | .42 | $ | .41 | $ | .41 | $ | .39 | ||||||||||
Book value per common share reconciliation | ||||||||||||||||||||
Book value per common share (GAAP) | $ | 17.02 | $ | 16.67 | $ | 16.50 | $ | 15.83 | $ | 15.40 | ||||||||||
Effect of goodwill and other intangibles | (4.06 | ) | (3.02 | ) | (2.39 | ) | (2.09 | ) | (2.10 | ) | ||||||||||
Tangible book value per common share | $ | 12.96 | $ | 13.65 | $ | 14.11 | $ | 13.74 | $ | 13.30 | ||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||
Return on common equity (GAAP) | 11.11 | % | (3.57 | )% | 9.22 | % | 9.98 | % | 8.54 | % | ||||||||||
Merger-related and other charges | .60 | 1.86 | .75 | .41 | .47 | |||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | 11.44 | - | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | 1.24 | |||||||||||||||
Return on common equity - operating | 11.71 | 9.73 | 9.97 | 10.39 | 10.25 | |||||||||||||||
Effect of goodwill and other intangibles | 3.55 | 2.20 | 1.96 | 1.80 | 1.85 | |||||||||||||||
Return on tangible common equity - operating | 15.26 | % | 11.93 | % | 11.93 | % | 12.19 | % | 12.10 | % | ||||||||||
Return on assets reconciliation | ||||||||||||||||||||
Return on assets (GAAP) | 1.26 | % | (.40 | )% | 1.01 | % | 1.06 | % | .89 | % | ||||||||||
Merger-related and other charges | .07 | .20 | .08 | .04 | .05 | |||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | 1.30 | - | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | .13 | |||||||||||||||
Return on assets - operating | 1.33 | % | 1.10 | % | 1.09 | % | 1.10 | % | 1.07 | % | ||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||
Dividend payout ratio (GAAP) | 25.53 | % | (62.50 | )% | 26.32 | % | 23.08 | % | 27.27 | % | ||||||||||
Merger-related and other charges | (1.53 | ) | 12.04 | (1.93 | ) | (1.13 | ) | (.98 | ) | |||||||||||
Impact of tax reform on remeasurement of deferred tax asset | - | 74.27 | - | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | - | - | - | (3.21 | ) | ||||||||||||||
Dividend payout ratio - operating | 24.00 | % | 23.81 | % | 24.39 | % | 21.95 | % | 23.08 | % | ||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||
Efficiency ratio (GAAP) | 57.83 | % | 63.03 | % | 59.27 | % | 57.89 | % | 59.29 | % | ||||||||||
Merger-related and other charges | (2.08 | ) | (6.11 | ) | (3.09 | ) | (1.68 | ) | (1.94 | ) | ||||||||||
Efficiency ratio - operating | 55.75 | % | 56.92 | % | 56.18 | % | 56.21 | % | 57.35 | % | ||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||
Equity to assets (GAAP) | 11.03 | % | 11.21 | % | 10.86 | % | 10.49 | % | 10.24 | % | ||||||||||
Effect of goodwill and other intangibles | (2.21 | ) | (1.69 | ) | (1.41 | ) | (1.26 | ) | (1.28 | ) | ||||||||||
Tangible equity to assets | 8.82 | 9.52 | 9.45 | 9.23 | 8.96 | |||||||||||||||
Effect of preferred equity | - | - | - | - | - | |||||||||||||||
Tangible common equity to assets | 8.82 | % | 9.52 | % | 9.45 | % | 9.23 | % | 8.96 | % | ||||||||||
Tangible common equity to risk-weighted assets reconciliation(1) | ||||||||||||||||||||
Tier 1 capital ratio (Regulatory) | 11.68 | % | 12.24 | % | 12.27 | % | 11.91 | % | 11.46 | % | ||||||||||
Effect of other comprehensive income | (.51 | ) | (.29 | ) | (.13 | ) | (.15 | ) | (.24 | ) | ||||||||||
Effect of deferred tax limitation | .43 | .51 | .94 | .95 | 1.13 | |||||||||||||||
Effect of trust preferred | (.34 | ) | (.36 | ) | (.24 | ) | (.25 | ) | (.25 | ) | ||||||||||
Basel III intangibles transition adjustment | - | (.05 | ) | (.04 | ) | (.02 | ) | (.03 | ) | |||||||||||
Tangible common equity to risk-weighted assets | 11.26 | % | 12.05 | % | 12.80 | % | 12.44 | % | 12.07 | % |
(1) | First quarter 2018 ratios are preliminary. |
8 |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2018 | 2017 | Linked | Year over | |||||||||||||||||||||||||
First | Fourth | Third | Second | First | Quarter | Year | ||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Owner occupied commercial RE | $ | 1,898 | $ | 1,924 | $ | 1,792 | $ | 1,723 | $ | 1,633 | $ | (26 | ) | $ | 265 | |||||||||||||
Income producing commercial RE | 1,677 | 1,595 | 1,413 | 1,342 | 1,297 | 82 | 380 | |||||||||||||||||||||
Commercial & industrial | 1,142 | 1,131 | 1,084 | 1,088 | 1,080 | 11 | 62 | |||||||||||||||||||||
Commercial construction | 691 | 712 | 583 | 587 | 667 | (21 | ) | 24 | ||||||||||||||||||||
Equipment financing | 423 | - | - | - | - | 423 | 423 | |||||||||||||||||||||
Total commercial | 5,831 | 5,362 | 4,872 | 4,740 | 4,677 | 469 | 1,154 | |||||||||||||||||||||
Residential mortgage | 992 | 974 | 933 | 881 | 860 | 18 | 132 | |||||||||||||||||||||
Home equity lines of credit | 712 | 731 | 689 | 665 | 659 | (19 | ) | 53 | ||||||||||||||||||||
Residential construction | 190 | 183 | 190 | 193 | 197 | 7 | (7 | ) | ||||||||||||||||||||
Consumer direct | 459 | 486 | 519 | 562 | 572 | (27 | ) | (113 | ) | |||||||||||||||||||
Total loans | $ | 8,184 | $ | 7,736 | $ | 7,203 | $ | 7,041 | $ | 6,965 | 448 | 1,219 | ||||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
North Georgia | $ | 1,004 | $ | 1,019 | $ | 1,047 | $ | 1,065 | $ | 1,076 | (15 | ) | (72 | ) | ||||||||||||||
Atlanta MSA | 1,513 | 1,510 | 1,477 | 1,445 | 1,408 | 3 | 105 | |||||||||||||||||||||
North Carolina | 1,037 | 1,049 | 542 | 541 | 541 | (12 | ) | 496 | ||||||||||||||||||||
Coastal Georgia | 635 | 630 | 634 | 623 | 591 | 5 | 44 | |||||||||||||||||||||
Gainesville MSA | 231 | 248 | 242 | 246 | 252 | (17 | ) | (21 | ) | |||||||||||||||||||
East Tennessee | 473 | 475 | 471 | 486 | 483 | (2 | ) | (10 | ) | |||||||||||||||||||
South Carolina | 1,537 | 1,486 | 1,470 | 1,260 | 1,243 | 51 | 294 | |||||||||||||||||||||
Commercial Banking Solutions | 1,438 | 961 | 920 | 926 | 911 | 477 | 527 | |||||||||||||||||||||
Indirect auto | 316 | 358 | 400 | 449 | 460 | (42 | ) | (144 | ) | |||||||||||||||||||
Total loans | $ | 8,184 | $ | 7,736 | $ | 7,203 | $ | 7,041 | $ | 6,965 | 448 | 1,219 |
9 |
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
First Quarter 2018 | Fourth Quarter 2017 | Third Quarter 2017 | ||||||||||||||||||||||||||||||||||
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 | $ | 6,757 | $ | 1,121 | $ | 7,878 | $ | 4,923 | $ | 1,955 | $ | 6,878 | $ | 5,027 | $ | 764 | $ | 5,791 | ||||||||||||||||||
Income producing CRE | 3,942 | 368 | 4,310 | 3,208 | 244 | 3,452 | 2,042 | 121 | 2,163 | |||||||||||||||||||||||||||
Commercial & industrial | 1,917 | - | 1,917 | 2,097 | - | 2,097 | 2,378 | - | 2,378 | |||||||||||||||||||||||||||
Commercial construction | 574 | 658 | 1,232 | 758 | 884 | 1,642 | 1,376 | 923 | 2,299 | |||||||||||||||||||||||||||
Equipment financing | 428 | - | 428 | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total commercial | 13,618 | 2,147 | 15,765 | 10,986 | 3,083 | 14,069 | 10,823 | 1,808 | 12,631 | |||||||||||||||||||||||||||
Residential mortgage | 8,724 | 232 | 8,956 | 8,776 | 136 | 8,912 | 8,559 | 392 | 8,951 | |||||||||||||||||||||||||||
Home equity lines of credit | 2,149 | 335 | 2,484 | 2,024 | 15 | 2,039 | 1,898 | 195 | 2,093 | |||||||||||||||||||||||||||
Residential construction | 378 | - | 378 | 192 | - | 192 | 178 | 341 | 519 | |||||||||||||||||||||||||||
Consumer direct | 1,371 | - | 1,371 | 1,680 | - | 1,680 | 1,463 | - | 1,463 | |||||||||||||||||||||||||||
Total NPAs | $ | 26,240 | $ | 2,714 | $ | 28,954 | $ | 23,658 | $ | 3,234 | $ | 26,892 | $ | 22,921 | $ | 2,736 | $ | 25,657 | ||||||||||||||||||
NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 8,519 | $ | 85 | $ | 8,604 | $ | 7,310 | $ | 94 | $ | 7,404 | $ | 6,707 | $ | 404 | $ | 7,111 | ||||||||||||||||||
Atlanta MSA | 1,138 | 132 | 1,270 | 1,395 | 279 | 1,674 | 1,098 | 338 | 1,436 | |||||||||||||||||||||||||||
North Carolina | 5,006 | 1,271 | 6,277 | 4,543 | 1,213 | 5,756 | 4,376 | 318 | 4,694 | |||||||||||||||||||||||||||
Coastal Georgia | 1,887 | - | 1,887 | 2,044 | 20 | 2,064 | 2,532 | - | 2,532 | |||||||||||||||||||||||||||
Gainesville MSA | 574 | 163 | 737 | 739 | - | 739 | 763 | - | 763 | |||||||||||||||||||||||||||
East Tennessee | 1,511 | 10 | 1,521 | 1,462 | - | 1,462 | 1,734 | 67 | 1,801 | |||||||||||||||||||||||||||
South Carolina | 3,443 | 483 | 3,926 | 3,433 | 1,059 | 4,492 | 1,903 | 1,609 | 3,512 | |||||||||||||||||||||||||||
Commercial Banking Solutions | 2,937 | 570 | 3,507 | 1,095 | 569 | 1,664 | 2,429 | - | 2,429 | |||||||||||||||||||||||||||
Indirect auto | 1,225 | - | 1,225 | 1,637 | - | 1,637 | 1,379 | - | 1,379 | |||||||||||||||||||||||||||
Total NPAs | $ | 26,240 | $ | 2,714 | $ | 28,954 | $ | 23,658 | $ | 3,234 | $ | 26,892 | $ | 22,921 | $ | 2,736 | $ | 25,657 | ||||||||||||||||||
NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 23,658 | $ | 3,234 | $ | 26,892 | $ | 22,921 | $ | 2,736 | $ | 25,657 | $ | 23,095 | $ | 2,739 | $ | 25,834 | ||||||||||||||||||
Acquisitions | 428 | - | 428 | 659 | 659 | 20 | 805 | 825 | ||||||||||||||||||||||||||||
Loans placed on non-accrual | 7,463 | - | 7,463 | 9,375 | - | 9,375 | 7,964 | - | 7,964 | |||||||||||||||||||||||||||
Payments received | (3,534 | ) | - | (3,534 | ) | (5,495 | ) | - | (5,495 | ) | (5,192 | ) | - | (5,192 | ) | |||||||||||||||||||||
Loan charge-offs | (1,150 | ) | - | (1,150 | ) | (1,747 | ) | - | (1,747 | ) | (2,159 | ) | - | (2,159 | ) | |||||||||||||||||||||
Foreclosures | (625 | ) | 625 | - | (1,396 | ) | 2,421 | 1,025 | (807 | ) | 683 | (124 | ) | |||||||||||||||||||||||
Property sales | - | (957 | ) | (957 | ) | - | (2,458 | ) | (2,458 | ) | - | (1,295 | ) | (1,295 | ) | |||||||||||||||||||||
Write downs | - | (72 | ) | (72 | ) | - | (117 | ) | (117 | ) | - | (236 | ) | (236 | ) | |||||||||||||||||||||
Net gains (losses) on sales | - | (116 | ) | (116 | ) | - | (7 | ) | (7 | ) | - | 40 | 40 | |||||||||||||||||||||||
Ending Balance | $ | 26,240 | $ | 2,714 | $ | 28,954 | $ | 23,658 | $ | 3,234 | $ | 26,892 | $ | 22,921 | $ | 2,736 | $ | 25,657 | ||||||||||||||||||
First Quarter 2018 | Fourth Quarter 2017 | Third Quarter 2017 | ||||||||||||||||||||||||||||||||||
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 | $ | (43 | ) | (.01 | )% | $ | (357 | ) | (.08 | )% | $ | (44 | ) | (.01 | )% | |||||||||||||||||||||
Income producing CRE | 422 | .10 | 595 | .16 | 1,159 | .33 | ||||||||||||||||||||||||||||||
Commercial & industrial | (3 | ) | - | (242 | ) | (.09 | ) | (200 | ) | (.08 | ) | |||||||||||||||||||||||||
Commercial construction | 266 | .15 | 148 | .09 | (114 | ) | (.07 | ) | ||||||||||||||||||||||||||||
Equipment financing | 40 | .08 | - | - | - | - | ||||||||||||||||||||||||||||||
Total commercial | 682 | .05 | 144 | .01 | 801 | .07 | ||||||||||||||||||||||||||||||
Residential mortgage | (52 | ) | (.02 | ) | 290 | .12 | 313 | .14 | ||||||||||||||||||||||||||||
Home equity lines of credit | 89 | .05 | 137 | .08 | 56 | .03 | ||||||||||||||||||||||||||||||
Residential construction | (64 | ) | (.14 | ) | (23 | ) | (.05 | ) | 36 | .07 | ||||||||||||||||||||||||||
Consumer direct | 846 | .72 | 513 | .40 | 429 | .31 | ||||||||||||||||||||||||||||||
Total | $ | 1,501 | .08 | $ | 1,061 | .06 | $ | 1,635 | .09 | |||||||||||||||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 772 | .31 | % | $ | 64 | .02 | % | $ | 516 | .19 | % | ||||||||||||||||||||||||
Atlanta MSA | (109 | ) | (.03 | ) | 26 | .01 | 150 | .04 | ||||||||||||||||||||||||||||
North Carolina | 144 | .06 | 127 | .06 | 221 | .16 | ||||||||||||||||||||||||||||||
Coastal Georgia | 137 | .09 | 174 | .11 | (39 | ) | (.02 | ) | ||||||||||||||||||||||||||||
Gainesville MSA | (18 | ) | (.03 | ) | 154 | .25 | (50 | ) | (.08 | ) | ||||||||||||||||||||||||||
East Tennessee | 31 | .03 | 61 | .05 | 55 | .05 | ||||||||||||||||||||||||||||||
South Carolina | 12 | - | 95 | .03 | 528 | .15 | ||||||||||||||||||||||||||||||
Commercial Banking Solutions | 176 | .06 | 75 | .03 | (7 | ) | - | |||||||||||||||||||||||||||||
Indirect auto | 356 | .41 | 285 | .30 | 261 | .24 | ||||||||||||||||||||||||||||||
Total | $ | 1,501 | .08 | $ | 1,061 | .06 | $ | 1,635 | .09 |
(1) | Annualized. |
10 |
UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands, except per share data) | 2018 | 2017 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 96,469 | $ | 72,727 | ||||
Investment securities, including tax exempt of $972 and $279 | 18,295 | 17,712 | ||||||
Deposits in banks and short-term investments | 526 | 519 | ||||||
Total interest revenue | 115,290 | 90,958 | ||||||
Interest expense: | ||||||||
Deposits: | ||||||||
NOW | 1,113 | 597 | ||||||
Money market | 2,175 | 1,426 | ||||||
Savings | 49 | 27 | ||||||
Time | 2,956 | 1,008 | ||||||
Total deposit interest expense | 6,293 | 3,058 | ||||||
Short-term borrowings | 300 | 40 | ||||||
Federal Home Loan Bank advances | 2,124 | 1,430 | ||||||
Long-term debt | 3,288 | 2,876 | ||||||
Total interest expense | 12,005 | 7,404 | ||||||
Net interest revenue | 103,285 | 83,554 | ||||||
Provision for credit losses | 3,800 | 800 | ||||||
Net interest revenue after provision for credit losses | 99,485 | 82,754 | ||||||
Fee revenue: | ||||||||
Service charges and fees | 8,925 | 10,604 | ||||||
Mortgage loan and other related fees | 5,359 | 4,424 | ||||||
Brokerage fees | 872 | 1,410 | ||||||
Gains from sales of SBA/USDA loans | 1,778 | 1,959 | ||||||
Securities gains (losses), net | (940 | ) | (2 | ) | ||||
Other | 6,402 | 3,679 | ||||||
Total fee revenue | 22,396 | 22,074 | ||||||
Total revenue | 121,881 | 104,828 | ||||||
Operating expenses: | ||||||||
Salaries and employee benefits | 42,875 | 36,691 | ||||||
Communications and equipment | 4,632 | 4,918 | ||||||
Occupancy | 5,613 | 4,949 | ||||||
Advertising and public relations | 1,515 | 1,061 | ||||||
Postage, printing and supplies | 1,637 | 1,370 | ||||||
Professional fees | 4,044 | 3,044 | ||||||
FDIC assessments and other regulatory charges | 2,476 | 1,283 | ||||||
Amortization of intangibles | 1,898 | 973 | ||||||
Merger-related and other charges | 2,054 | 2,054 | ||||||
Other | 6,731 | 6,483 | ||||||
Total operating expenses | 73,475 | 62,826 | ||||||
Net income before income taxes | 48,406 | 42,002 | ||||||
Income tax expense | 10,748 | 18,478 | ||||||
Net income | $ | 37,658 | $ | 23,524 | ||||
Net income available to common shareholders | $ | 37,381 | $ | 23,524 | ||||
Earnings per common share: | ||||||||
Basic | $ | .47 | $ | .33 | ||||
Diluted | .47 | .33 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 79,205 | 71,700 | ||||||
Diluted | 79,215 | 71,708 |
11 |
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets(Unaudited)
March 31, | December 31, | |||||||
(in thousands, except share and per share data) | 2018 | 2017 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 136,201 | $ | 129,108 | ||||
Interest-bearing deposits in banks | 216,052 | 185,167 | ||||||
Cash and cash equivalents | 352,253 | 314,275 | ||||||
Securities available for sale | 2,419,049 | 2,615,850 | ||||||
Securities held to maturity (fair value $308,007 and $321,276) | 312,080 | 321,094 | ||||||
Loans held for sale (includes $26,493 and $26,252 at fair value) | 26,493 | 32,734 | ||||||
Loans and leases, net of unearned income | 8,184,249 | 7,735,572 | ||||||
Less allowance for loan and lease losses | (61,085 | ) | (58,914 | ) | ||||
Loans, net | 8,123,164 | 7,676,658 | ||||||
Premises and equipment, net | 208,243 | 208,852 | ||||||
Bank owned life insurance | 189,759 | 188,970 | ||||||
Accrued interest receivable | 31,349 | 32,459 | ||||||
Net deferred tax asset | 86,520 | 88,049 | ||||||
Derivative financial instruments | 27,202 | 22,721 | ||||||
Goodwill and other intangible assets | 328,328 | 244,397 | ||||||
Other assets | 159,815 | 169,401 | ||||||
Total assets | $ | 12,264,255 | $ | 11,915,460 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand | $ | 3,226,111 | $ | 3,087,797 | ||||
NOW | 2,106,145 | 2,131,939 | ||||||
Money market | 2,052,486 | 2,016,748 | ||||||
Savings | 677,020 | 651,742 | ||||||
Time | 1,520,931 | 1,548,460 | ||||||
Brokered | 410,747 | 371,011 | ||||||
Total deposits | 9,993,440 | 9,807,697 | ||||||
Short-term borrowings | - | 50,000 | ||||||
Federal Home Loan Bank advances | 434,574 | 504,651 | ||||||
Long-term debt | 325,955 | 120,545 | ||||||
Derivative financial instruments | 33,236 | 25,376 | ||||||
Accrued expenses and other liabilities | 120,295 | 103,857 | ||||||
Total liabilities | 10,907,500 | 10,612,126 | ||||||
Shareholders' equity: | ||||||||
Common stock, $1 par value; 150,000,000 shares authorized; | ||||||||
79,122,620 and 77,579,561 shares issued and outstanding | 79,123 | 77,580 | ||||||
Common stock issuable; 612,831 and 607,869 shares | 9,392 | 9,083 | ||||||
Capital surplus | 1,496,307 | 1,451,814 | ||||||
Accumulated deficit | (181,877 | ) | (209,902 | ) | ||||
Accumulated other comprehensive loss | (46,190 | ) | (25,241 | ) | ||||
Total shareholders' equity | 1,356,755 | 1,303,334 | ||||||
Total liabilities and shareholders' equity | $ | 12,264,255 | $ | 11,915,460 |
12 |
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
2018 | 2017 | |||||||||||||||||||||||
Average | Avg. | Average | Avg. | |||||||||||||||||||||
(dollars in thousands, fully taxable equivalent (FTE)) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income (FTE)(1)(2) | $ | 7,993,339 | $ | 96,389 | 4.89 | % | $ | 6,903,860 | $ | 72,741 | 4.27 | % | ||||||||||||
Taxable securities(3) | 2,722,977 | 17,323 | 2.54 | 2,779,625 | 17,433 | 2.51 | ||||||||||||||||||
Tax-exempt securities (FTE)(1)(3) | 146,531 | 1,309 | 3.57 | 42,180 | 457 | 4.33 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 213,055 | 698 | 1.31 | 146,027 | 664 | 1.82 | ||||||||||||||||||
Total interest-earning assets (FTE) | 11,075,902 | 115,719 | 4.23 | 9,871,692 | 91,295 | 3.74 | ||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (59,144 | ) | (61,668 | ) | ||||||||||||||||||||
Cash and due from banks | 160,486 | 99,253 | ||||||||||||||||||||||
Premises and equipment | 216,723 | 190,096 | ||||||||||||||||||||||
Other assets(3) | 717,385 | 577,168 | ||||||||||||||||||||||
Total assets | $ | 12,111,352 | $ | 10,676,541 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 2,083,703 | 1,113 | .22 | $ | 1,959,678 | 597 | .12 | ||||||||||||||||
Money market | 2,230,620 | 2,175 | .40 | 2,065,449 | 1,426 | .28 | ||||||||||||||||||
Savings | 655,746 | 49 | .03 | 560,634 | 27 | .02 | ||||||||||||||||||
Time | 1,535,216 | 2,241 | .59 | 1,263,946 | 815 | .26 | ||||||||||||||||||
Brokered time deposits | 158,358 | 715 | 1.83 | 98,340 | 193 | .80 | ||||||||||||||||||
Total interest-bearing deposits | 6,663,643 | 6,293 | .38 | 5,948,047 | 3,058 | .21 | ||||||||||||||||||
Federal funds purchased and other borrowings | 78,732 | 300 | 1.55 | 19,031 | 40 | .85 | ||||||||||||||||||
Federal Home Loan Bank advances | 511,727 | 2,124 | 1.68 | 681,117 | 1,430 | .85 | ||||||||||||||||||
Long-term debt | 274,480 | 3,288 | 4.86 | 175,142 | 2,876 | 6.66 | ||||||||||||||||||
Total borrowed funds | 864,939 | 5,712 | 2.68 | 875,290 | 4,346 | 2.01 | ||||||||||||||||||
Total interest-bearing liabilities | 7,528,582 | 12,005 | .65 | 6,823,337 | 7,404 | .44 | ||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Non-interest-bearing deposits | 3,095,405 | 2,643,630 | ||||||||||||||||||||||
Other liabilities | 150,955 | 116,752 | ||||||||||||||||||||||
Total liabilities | 10,774,942 | 9,583,719 | ||||||||||||||||||||||
Shareholders' equity | 1,336,410 | 1,092,822 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,111,352 | $ | 10,676,541 | ||||||||||||||||||||
Net interest revenue (FTE) | $ | 103,714 | $ | 83,891 | ||||||||||||||||||||
Net interest-rate spread (FTE) | 3.58 | % | 3.30 | % | ||||||||||||||||||||
Net interest margin (FTE)(4) | 3.80 | % | 3.45 | % |
(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 39%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate. |
(2) | Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued and loans that are held for sale. |
(3) | Securities available for sale are shown at amortized cost. Pretax unrealized losses of $28.3 million in 2018 and $5.38 million in 2017 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. |
13 |