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 Fourth Quarter Results
Return on Assets of 1.43% and Return on Common Equity of 12.08%
GREENVILLE, SC – January 22, 2019
United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, which reflected solid year-over-year loan and deposit growth, improving operating efficiency and continued strong asset quality. For the quarter, diluted earnings per share was $0.56 compared with a net loss of $0.16 per diluted share a year ago due to the impact of tax reform. Operating diluted earnings per share, which exclude merger-related and other charges, was $0.57, an increase of 36% over the previous year. Profitability ratios continued to be strong -- United ended the year with a 1.43% return on assets and a 12.08% return on common equity. On an operating basis, return on assets was 1.45% and return on tangible common equity was 15.88%.
Other key banking metrics were strong. The fourth quarter saw continued net interest margin expansion and 8% annualized loan growth, the strongest growth quarter in 2018. Deposit growth reflected the strength of United’s community banking franchise – total customer deposits increased $173 million for the fourth quarter and $414 million for the year. Mortgage production grew by nearly 4% compared to the fourth quarter last year and increased 20% for the full year compared to 2017. United’s SBA business also had a strong year, with production up 12% over 2017.
“The fourth quarter was a strong finish to an outstanding year,” said Lynn Harton, Chief Executive Officer. “Our full year return on assets was up 31 basis points on an operating basis and our operating earnings per share was up 31% over 2017. These impressive results do not come easily and are attributed to the hard work of our bankers, who continue to deliver the best service in the business. We are very pleased that their efforts are being recognized. Forbes included United on their list of the top 100 Best Banks in America for the fifth consecutive year. Additionally, for the fifth straight year, we earned the top ranking for overall customer satisfaction by JD Power; our service was ranked as highest in the Southeast. We were also honored by our recognition in the ‘Best Banks to Work For’ program by American Banker for the second year in a row. This is a measure of employee satisfaction for all banks in the country, and we could not be more pleased by our team’s show of support for United. The strength of our culture and the strong momentum we see in the business gives me confidence that we will continue our strong performance into 2019 and continue to build long-term shareholder value.”
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2018 Highlights:
· | 2018 earnings per diluted share was $2.07, a 125% increase over 2017, which included the impact of tax reform |
· | Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was $2.14 compared to $1.63 in 2017, an increase of 31% |
· | Return on average assets was 1.35% in 2018, an increase of 73 basis points from 2017 |
· | Excluding merger-related and other charges and the 2017 impact of tax reform, return on average assets was 1.40%, an increase of 31 basis points from 2017 |
· | Efficiency ratio of 57.31% in 2018 improved 264 basis points as compared to 2017 |
· | Excluding merger-related and other charges, efficiency ratio of 55.94% improved 73 basis points as compared to 2017 |
· | End of period loans grew $647 million in 2018, up 8% over December 31, 2017 |
· | Common Equity Tier 1 ratio was 12.2% at December 31, 2018, compared to 12.0% at December 31, 2017 |
· | Declared $0.58 per share in common dividends in 2018, up 53% over 2017 |
· | Completed the acquisition of Navitas Credit Corporation on February 1, 2018 |
· | Issued $100 million in subordinated debt in the first quarter and redeemed $7.4 million in high rate Trust Preferred securities in the fourth quarter |
· | Completed our CEO transition plan, elevating H. Lynn Harton into the role as Jimmy Tallent retired into the Executive Chairman position |
· | Added two new Board members, Jennifer Mann and Lance F. Drummond, adding significant experience and expertise to our oversight function |
Fourth Quarter 2018 Financial Highlights:
· | Return on assets of 1.43%, or 1.45% excluding merger-related and other charges |
· | Return on common equity of 12.1% or return on tangible common equity of 15.9%, which excludes merger-related and other charges |
· | Loan growth, excluding planned runoff of the indirect portfolio, of 10% on an annualized basis |
· | Loan production of $868 million, as compared to $644 million in the fourth quarter of 2017 |
· | Expansion of the net interest margin to 3.97%, up two basis points from the third quarter of 2018 and up 34 basis points from a year ago |
· | Efficiency ratio of 56.73%, or 55.83% excluding merger-related and other charges |
· | Net charge offs of nine basis points, consistent with last quarter’s result of seven basis points |
· | Nonperforming assets of 0.20% of total assets, compared to 0.19% at September 30, 2018 and 0.23% at December 31, 2017 |
Conference Call
United will hold a conference call, Wednesday, January 23, 2019, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 9381368. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.
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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
Fourth | For the Twelve | |||||||||||||||||||||||||||||||||||
2018 | 2017 | Quarter | Months Ended | YTD | ||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | 2018-2017 | December 31, | 2018-2017 | |||||||||||||||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2018 | 2017 | Change | |||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
Interest revenue | $ | 133,854 | $ | 128,721 | $ | 122,215 | $ | 115,290 | $ | 106,757 | $ | 500,080 | $ | 389,720 | ||||||||||||||||||||||
Interest expense | 18,975 | 16,611 | 13,739 | 12,005 | 9,249 | 61,330 | 33,735 | |||||||||||||||||||||||||||||
Net interest revenue | 114,879 | 112,110 | 108,476 | 103,285 | 97,508 | 18 | % | 438,750 | 355,985 | 23 | % | |||||||||||||||||||||||||
Provision for credit losses | 2,100 | 1,800 | 1,800 | 3,800 | 1,200 | 9,500 | 3,800 | |||||||||||||||||||||||||||||
Noninterest income | 23,045 | 24,180 | 23,340 | 22,396 | 21,928 | 5 | 92,961 | 88,260 | 5 | |||||||||||||||||||||||||||
Total revenue | 135,824 | 134,490 | 130,016 | 121,881 | 118,236 | 15 | 522,211 | 440,445 | 19 | |||||||||||||||||||||||||||
Expenses | 78,242 | 77,718 | 76,850 | 73,475 | 75,882 | 3 | 306,285 | 267,611 | 14 | |||||||||||||||||||||||||||
Income before income tax expense | 57,582 | 56,772 | 53,166 | 48,406 | 42,354 | 36 | 215,926 | 172,834 | 25 | |||||||||||||||||||||||||||
Income tax expense | 12,445 | 13,090 | 13,532 | 10,748 | 54,270 | 49,815 | 105,013 | |||||||||||||||||||||||||||||
Net income (loss) | 45,137 | 43,682 | 39,634 | 37,658 | (11,916 | ) | 166,111 | 67,821 | ||||||||||||||||||||||||||||
Merger-related and other charges | 1,234 | 592 | 2,873 | 2,646 | 7,358 | 7,345 | 14,662 | |||||||||||||||||||||||||||||
Income tax benefit of merger-related and other charges | (604 | ) | (141 | ) | (121 | ) | (628 | ) | (1,165 | ) | (1,494 | ) | (3,745 | ) | ||||||||||||||||||||||
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act | — | — | — | — | 38,199 | — | 38,199 | |||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | 3,400 | |||||||||||||||||||||||||||||
Net income - operating(1) | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | $ | 32,476 | 41 | $ | 171,962 | $ | 120,337 | 43 | ||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||
Diluted net income (loss) - GAAP | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | $ | (0.16 | ) | $ | 2.07 | $ | 0.92 | |||||||||||||||||||||
Diluted net income - operating(1) | 0.57 | 0.55 | 0.53 | 0.50 | 0.42 | 36 | 2.14 | 1.63 | 31 | |||||||||||||||||||||||||||
Cash dividends declared | 0.16 | 0.15 | 0.15 | 0.12 | 0.10 | 60 | 0.58 | 0.38 | 53 | |||||||||||||||||||||||||||
Book value | 18.24 | 17.56 | 17.29 | 17.02 | 16.67 | 9 | 18.24 | 16.67 | 9 | |||||||||||||||||||||||||||
Tangible book value(3) | 14.24 | 13.54 | 13.25 | 12.96 | 13.65 | 4 | 14.24 | 13.65 | 4 | |||||||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||||
Return on common equity - GAAP(2)(4) | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | (3.57 | )% | 11.60 | % | 5.67 | % | ||||||||||||||||||||||
Return on common equity - operating(1)(2)(4) | 12.25 | 12.09 | 11.97 | 11.71 | 9.73 | 12.01 | 10.07 | |||||||||||||||||||||||||||||
Return on tangible common equity - operating(1)(2)(3)(4) | 15.88 | 15.81 | 15.79 | 15.26 | 11.93 | 15.69 | 12.02 | |||||||||||||||||||||||||||||
Return on assets - GAAP(4) | 1.43 | 1.41 | 1.30 | 1.26 | (0.40 | ) | 1.35 | 0.62 | ||||||||||||||||||||||||||||
Return on assets - operating(1)(4) | 1.45 | 1.42 | 1.39 | 1.33 | 1.10 | 1.40 | 1.09 | |||||||||||||||||||||||||||||
Dividend payout ratio - GAAP | 28.57 | 27.78 | 30.61 | 25.53 | (62.50 | ) | 28.02 | 41.30 | ||||||||||||||||||||||||||||
Dividend payout ratio - operating(1) | 28.07 | 27.27 | 28.30 | 24.00 | 23.81 | 27.10 | 23.31 | |||||||||||||||||||||||||||||
Net interest margin (fully taxable equivalent)(4) | 3.97 | 3.95 | 3.90 | 3.80 | 3.63 | 3.91 | 3.52 | |||||||||||||||||||||||||||||
Efficiency ratio - GAAP | 56.73 | 56.82 | 57.94 | 57.83 | 63.03 | 57.31 | 59.95 | |||||||||||||||||||||||||||||
Efficiency ratio - operating(1) | 55.83 | 56.39 | 55.77 | 55.75 | 56.92 | 55.94 | 56.67 | |||||||||||||||||||||||||||||
Average equity to average assets | 11.35 | 11.33 | 11.21 | 11.03 | 11.21 | 11.24 | 10.71 | |||||||||||||||||||||||||||||
Average tangible equity to average assets(3) | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | |||||||||||||||||||||||||||||
Average tangible common equity to average assets(3) | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | |||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets(3)(5) | 11.99 | 11.61 | 11.36 | 11.19 | 12.05 | 11.99 | 12.05 | |||||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 23,778 | $ | 22,530 | $ | 21,817 | $ | 26,240 | $ | 23,658 | 1 | $ | 23,778 | $ | 23,658 | 1 | ||||||||||||||||||||
Foreclosed properties | 1,305 | 1,336 | 2,597 | 2,714 | 3,234 | (60 | ) | 1,305 | 3,234 | (60 | ) | |||||||||||||||||||||||||
Total nonperforming assets (NPAs) | 25,083 | 23,866 | 24,414 | 28,954 | 26,892 | (7 | ) | 25,083 | 26,892 | (7 | ) | |||||||||||||||||||||||||
Allowance for loan losses | 61,203 | 60,940 | 61,071 | 61,085 | 58,914 | 4 | 61,203 | 58,914 | 4 | |||||||||||||||||||||||||||
Net charge-offs | 1,787 | 1,466 | 1,359 | 1,501 | 1,061 | 68 | 6,113 | 5,998 | 2 | |||||||||||||||||||||||||||
Allowance for loan losses to loans | 0.73 | % | 0.74 | % | 0.74 | % | 0.75 | % | 0.76 | % | 0.73 | % | 0.76 | % | ||||||||||||||||||||||
Net charge-offs to average loans(4) | 0.09 | 0.07 | 0.07 | 0.08 | 0.06 | 0.07 | 0.08 | |||||||||||||||||||||||||||||
NPAs to loans and foreclosed properties | 0.30 | 0.29 | 0.30 | 0.35 | 0.35 | 0.30 | 0.35 | |||||||||||||||||||||||||||||
NPAs to total assets | 0.20 | 0.19 | 0.20 | 0.24 | 0.23 | 0.20 | 0.23 | |||||||||||||||||||||||||||||
AVERAGE BALANCES($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 8,306 | $ | 8,200 | $ | 8,177 | $ | 7,993 | $ | 7,560 | 10 | $ | 8,170 | $ | 7,150 | 14 | ||||||||||||||||||||
Investment securities | 3,004 | 2,916 | 2,802 | 2,870 | 2,991 | — | 2,899 | 2,847 | 2 | |||||||||||||||||||||||||||
Earning assets | 11,534 | 11,320 | 11,193 | 11,076 | 10,735 | 7 | 11,282 | 10,162 | 11 | |||||||||||||||||||||||||||
Total assets | 12,505 | 12,302 | 12,213 | 12,111 | 11,687 | 7 | 12,284 | 11,015 | 12 | |||||||||||||||||||||||||||
Deposits | 10,306 | 9,950 | 9,978 | 9,759 | 9,624 | 7 | 10,000 | 8,950 | 12 | |||||||||||||||||||||||||||
Shareholders’ equity | 1,420 | 1,394 | 1,370 | 1,336 | 1,310 | 8 | 1,380 | 1,180 | 17 | |||||||||||||||||||||||||||
Common shares - basic(thousands) | 79,884 | 79,806 | 79,753 | 79,205 | 76,768 | 4 | 79,662 | 73,247 | 9 | |||||||||||||||||||||||||||
Common shares - diluted(thousands) | 79,890 | 79,818 | 79,755 | 79,215 | 76,768 | 4 | 79,671 | 73,259 | 9 | |||||||||||||||||||||||||||
AT PERIOD END($ in millions) | ||||||||||||||||||||||||||||||||||||
Loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 8 | $ | 8,383 | $ | 7,736 | 8 | ||||||||||||||||||||
Investment securities | 2,903 | 2,873 | 2,834 | 2,731 | 2,937 | (1 | ) | 2,903 | 2,937 | (1 | ) | |||||||||||||||||||||||||
Total assets | 12,573 | 12,405 | 12,386 | 12,264 | 11,915 | 6 | 12,573 | 11,915 | 6 | |||||||||||||||||||||||||||
Deposits | 10,535 | 10,229 | 9,966 | 9,993 | 9,808 | 7 | 10,535 | 9,808 | 7 | |||||||||||||||||||||||||||
Shareholders’ equity | 1,458 | 1,402 | 1,379 | 1,357 | 1,303 | 12 | 1,458 | 1,303 | 12 | |||||||||||||||||||||||||||
Common shares outstanding(thousands) | 79,234 | 79,202 | 79,138 | 79,123 | 77,580 | 2 | 79,234 | 77,580 | 2 |
(1) | Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation and a first quarter 2017 release of disproportionate tax effects lodged in OCI.(2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).(3) Excludes effect of acquisition related intangibles and associated amortization.(4) Annualized.(5) Fourth quarter 2018 ratio is preliminary. |
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UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||
Interest revenue | $ | 500,080 | $ | 389,720 | $ | 335,020 | $ | 278,532 | $ | 248,432 | ||||||||||
Interest expense | 61,330 | 33,735 | 25,236 | 21,109 | 25,551 | |||||||||||||||
Net interest revenue | 438,750 | 355,985 | 309,784 | 257,423 | 222,881 | |||||||||||||||
Provision for credit losses | 9,500 | 3,800 | (800 | ) | 3,700 | 8,500 | ||||||||||||||
Noninterest income | 92,961 | 88,260 | 93,697 | 72,529 | 55,554 | |||||||||||||||
Total revenue | 522,211 | 440,445 | 404,281 | 326,252 | 269,935 | |||||||||||||||
Expenses | 306,285 | 267,611 | 241,289 | 211,238 | 162,865 | |||||||||||||||
Income before income tax expense | 215,926 | 172,834 | 162,992 | 115,014 | 107,070 | |||||||||||||||
Income tax expense (benefit) | 49,815 | 105,013 | 62,336 | 43,436 | 39,450 | |||||||||||||||
Net income | 166,111 | 67,821 | 100,656 | 71,578 | 67,620 | |||||||||||||||
Merger-related and other charges | 7,345 | 14,662 | 8,122 | 17,995 | - | |||||||||||||||
Income tax benefit of merger-related and other charges | (1,494 | ) | (3,745 | ) | (3,074 | ) | (6,388 | ) | - | |||||||||||
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act | - | 38,199 | - | - | - | |||||||||||||||
Impairment of deferred tax asset on cancelled non-qualified stock options | - | - | 976 | - | - | |||||||||||||||
Release of disproportionate tax effects lodged in OCI | - | 3,400 | - | - | - | |||||||||||||||
Net income - operating(1) | $ | 171,962 | $ | 120,337 | $ | 106,680 | $ | 83,185 | $ | 67,620 | ||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Per common share: | ||||||||||||||||||||
Diluted net income - GAAP | $ | 2.07 | $ | 0.92 | $ | 1.40 | $ | 1.09 | $ | 1.11 | ||||||||||
Diluted net income - operating (1) | 2.14 | 1.63 | 1.48 | 1.27 | 1.11 | |||||||||||||||
Cash dividends declared | 0.58 | 0.38 | 0.30 | 0.22 | 0.11 | |||||||||||||||
Book value | 18.24 | 16.67 | 15.06 | 14.02 | 12.20 | |||||||||||||||
Tangible book value(3) | 14.24 | 13.65 | 12.95 | 12.06 | 12.15 | |||||||||||||||
Key performance ratios: | ||||||||||||||||||||
Return on common equity - GAAP(2) | 11.60 | % | 5.67 | % | 9.41 | % | 8.15 | % | 9.17 | % | ||||||||||
Return on common equity - operating(1)(2) | 12.01 | �� | 10.07 | 9.98 | 9.48 | 9.17 | ||||||||||||||
Return on tangible common equity - operating(1)(2)(3) | 15.69 | 12.02 | 11.86 | 10.24 | 9.32 | |||||||||||||||
Return on assets - GAAP | 1.35 | 0.62 | 1.00 | 0.85 | 0.91 | |||||||||||||||
Return on assets - operating(1) | 1.40 | 1.09 | 1.06 | 0.98 | 0.91 | |||||||||||||||
Dividend payout ratio - GAAP | 28.02 | 41.30 | 21.43 | 20.18 | 9.91 | |||||||||||||||
Dividend payout ratio - operating(1) | 27.10 | 23.31 | 20.27 | 17.32 | 9.91 | |||||||||||||||
Net interest margin (fully taxable equivalent) | 3.91 | 3.52 | 3.36 | 3.30 | 3.26 | |||||||||||||||
Efficiency ratio - GAAP | 57.31 | 59.95 | 59.80 | 63.96 | 58.26 | |||||||||||||||
Efficiency ratio - operating (1) | 55.94 | 56.67 | 57.78 | 58.51 | 58.26 | |||||||||||||||
Average equity to average assets | 11.24 | 10.71 | 10.54 | 10.27 | 9.69 | |||||||||||||||
Average tangible equity to average assets(3) | 8.92 | 9.29 | 9.21 | 9.74 | 9.67 | |||||||||||||||
Average tangible common equity to average assets(3) | 8.92 | 9.29 | 9.19 | 9.66 | 9.60 | |||||||||||||||
Tangible common equity to risk-weighted assets(3)(4) | 11.99 | 12.05 | 11.84 | 12.82 | 13.82 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Nonperforming loans | $ | 23,778 | $ | 23,658 | $ | 21,539 | $ | 22,653 | $ | 17,881 | ||||||||||
Foreclosed properties | 1,305 | 3,234 | 7,949 | 4,883 | 1,726 | |||||||||||||||
Total nonperforming assets (NPAs) | 25,083 | 26,892 | 29,488 | 27,536 | 19,607 | |||||||||||||||
Allowance for loan losses | 61,203 | 58,914 | 61,422 | 68,448 | 71,619 | |||||||||||||||
Net charge-offs | 6,113 | 5,998 | 6,766 | 6,259 | 13,879 | |||||||||||||||
Allowance for loan losses to loans | 0.73 | % | 0.76 | % | 0.89 | % | 1.14 | % | 1.53 | % | ||||||||||
Net charge-offs to average loans | 0.07 | 0.08 | 0.11 | 0.12 | 0.31 | |||||||||||||||
NPAs to loans and foreclosed properties | 0.30 | 0.35 | 0.43 | 0.46 | 0.42 | |||||||||||||||
NPAs to total assets | 0.20 | 0.23 | 0.28 | 0.29 | 0.26 | |||||||||||||||
AVERAGE BALANCES($ in millions) | ||||||||||||||||||||
Loans | $ | 8,170 | $ | 7,150 | $ | 6,413 | $ | 5,298 | $ | 4,450 | ||||||||||
Investment securities | 2,899 | 2,847 | 2,691 | 2,368 | 2,274 | |||||||||||||||
Earning assets | 11,282 | 10,162 | 9,257 | �� | 7,834 | 6,880 | ||||||||||||||
Total assets | 12,284 | 11,015 | 10,054 | 8,462 | 7,436 | |||||||||||||||
Deposits | 10,000 | 8,950 | 8,177 | 7,055 | 6,228 | |||||||||||||||
Shareholders’ equity | 1,380 | 1,180 | 1,059 | 869 | 720 | |||||||||||||||
Common shares - basic(thousands) | 79,662 | 73,247 | 71,910 | 65,488 | 60,588 | |||||||||||||||
Common shares - diluted(thousands) | 79,671 | 73,259 | 71,915 | 65,492 | 60,590 | |||||||||||||||
AT PERIOD END($ in millions) | ||||||||||||||||||||
Loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 | ||||||||||
Investment securities | 2,903 | 2,937 | 2,762 | 2,656 | 2,198 | |||||||||||||||
Total assets | 12,573 | 11,915 | 10,709 | 9,616 | 7,558 | |||||||||||||||
Deposits | 10,535 | 9,808 | 8,638 | 7,873 | 6,335 | |||||||||||||||
Shareholders’ equity | 1,458 | 1,303 | 1,076 | 1,018 | 740 | |||||||||||||||
Common shares outstanding(thousands) | 79,234 | 77,580 | 70,899 | 71,484 | 60,259 | |||||||||||||||
(1) | Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property.(2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).(3) Excludes effect of acquisition related intangibles and associated amortization.(4) 2018 ratio is preliminary. |
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UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2018 | 2017 | For the Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | December 31, | |||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||||||||||||||||||||
Expenses (GAAP) | $ | 78,242 | $ | 77,718 | $ | 76,850 | $ | 73,475 | $ | 75,882 | $ | 306,285 | $ | 267,611 | $ | 241,289 | $ | 211,238 | $ | 162,865 | ||||||||||||||||||||
Merger-related and other charges | (1,234 | ) | (592 | ) | (2,873 | ) | (2,646 | ) | (7,358 | ) | (7,345 | ) | (14,662 | ) | (8,122 | ) | (17,995 | ) | — | |||||||||||||||||||||
Expenses - operating | $ | 77,008 | $ | 77,126 | $ | 73,977 | $ | 70,829 | $ | 68,524 | $ | 298,940 | $ | 252,949 | $ | 233,167 | $ | 193,243 | $ | 162,865 | ||||||||||||||||||||
Net income reconciliation | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) (GAAP) | $ | 45,137 | $ | 43,682 | $ | 39,634 | $ | 37,658 | $ | (11,916 | ) | $ | 166,111 | $ | 67,821 | $ | 100,656 | $ | 71,578 | $ | 67,620 | |||||||||||||||||||
Merger-related and other charges | 1,234 | 592 | 2,873 | 2,646 | 7,358 | 7,345 | 14,662 | 8,122 | 17,995 | — | ||||||||||||||||||||||||||||||
Income tax benefit of merger-related and other charges | (604 | ) | (141 | ) | (121 | ) | (628 | ) | (1,165 | ) | (1,494 | ) | (3,745 | ) | (3,074 | ) | (6,388 | ) | — | |||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | — | — | — | — | 38,199 | — | 38,199 | — | — | — | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | — | — | — | — | — | — | — | 976 | — | — | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | 3,400 | — | — | — | ||||||||||||||||||||||||||||||
Net income - operating | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | $ | 32,476 | $ | 171,962 | $ | 120,337 | $ | 106,680 | $ | 83,185 | $ | 67,620 | ||||||||||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Diluted income (loss) per common share (GAAP) | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | $ | (0.16 | ) | $ | 2.07 | $ | 0.92 | $ | 1.40 | $ | 1.09 | $ | 1.11 | |||||||||||||||||||
Merger-related and other charges | 0.01 | 0.01 | 0.04 | 0.03 | 0.08 | 0.07 | 0.14 | 0.07 | 0.18 | — | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | — | — | — | — | 0.50 | — | 0.52 | — | — | — | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | — | — | — | — | — | — | — | 0.01 | — | — | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||
Diluted income per common share - operating | $ | 0.57 | $ | 0.55 | $ | 0.53 | $ | 0.50 | $ | 0.42 | $ | 2.14 | $ | 1.63 | $ | 1.48 | $ | 1.27 | $ | 1.11 | ||||||||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 18.24 | $ | 17.56 | $ | 17.29 | $ | 17.02 | $ | 16.67 | $ | 18.24 | $ | 16.67 | $ | 15.06 | $ | 14.02 | $ | 12.20 | ||||||||||||||||||||
Effect of goodwill and other intangibles | (4.00 | ) | (4.02 | ) | (4.04 | ) | (4.06 | ) | (3.02 | ) | (4.00 | ) | (3.02 | ) | (2.11 | ) | (1.96 | ) | (0.05 | ) | ||||||||||||||||||||
Tangible book value per common share | $ | 14.24 | $ | 13.54 | $ | 13.25 | $ | 12.96 | $ | 13.65 | $ | 14.24 | $ | 13.65 | $ | 12.95 | $ | 12.06 | $ | 12.15 | ||||||||||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||||||||||||||
Return on common equity (GAAP) | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | (3.57 | )% | 11.60 | % | 5.67 | % | 9.41 | % | 8.15 | % | 9.17 | % | ||||||||||||||||||||
Merger-related and other charges | 0.17 | 0.13 | 0.77 | 0.60 | 1.86 | 0.41 | 0.92 | 0.48 | 1.33 | — | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | — | — | — | — | 11.44 | — | 3.20 | — | — | — | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | — | — | — | — | — | — | — | 0.09 | — | — | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | 0.28 | — | — | — | ||||||||||||||||||||||||||||||
Return on common equity - operating | 12.25 | 12.09 | 11.97 | 11.71 | 9.73 | 12.01 | 10.07 | 9.98 | 9.48 | 9.17 | ||||||||||||||||||||||||||||||
Effect of goodwill and other intangibles | 3.63 | 3.72 | 3.82 | 3.55 | 2.20 | 3.68 | 1.95 | 1.88 | 0.76 | 0.15 | ||||||||||||||||||||||||||||||
Return on tangible common equity - operating | 15.88 | % | 15.81 | % | 15.79 | % | 15.26 | % | 11.93 | % | 15.69 | % | 12.02 | % | 11.86 | % | 10.24 | % | 9.32 | % | ||||||||||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.43 | % | 1.41 | % | 1.30 | % | 1.26 | % | (0.40 | )% | 1.35 | % | 0.62 | % | 1.00 | % | 0.85 | % | 0.91 | % | ||||||||||||||||||||
Merger-related and other charges | 0.02 | 0.01 | 0.09 | 0.07 | 0.20 | 0.05 | 0.09 | 0.05 | 0.13 | — | ||||||||||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | — | — | — | — | 1.30 | — | 0.35 | — | — | — | ||||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | — | — | — | — | — | — | — | 0.01 | — | — | ||||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | 0.03 | — | — | — | ||||||||||||||||||||||||||||||
Return on assets - operating | 1.45 | % | 1.42 | % | 1.39 | % | 1.33 | % | 1.10 | % | 1.40 | % | 1.09 | % | 1.06 | % | 0.98 | % | 0.91 | % | ||||||||||||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||||||||||||||||||||||
Dividend payout ratio (GAAP) | 28.57 | % | 27.78 | % | 30.61 | % | 25.53 | % | (62.50 | )% | 28.02 | % | 41.30 | % | 21.43 | % | 20.18 | % | 9.91 | % | ||||||||||||||||||||
Merger-related and other charges | (0.50 | ) | (0.51 | ) | (2.31 | ) | (1.53 | ) | 12.04 | (0.92 | ) | (5.65 | ) | (1.02 | ) | (2.86 | ) | — | ||||||||||||||||||||||
Impact of tax reform on remeasurement of deferred tax asset | — | — | — | — | 74.27 | — | (11.61 | ) | — | — | — | |||||||||||||||||||||||||||||
Impairment of deferred tax asset on canceled non-qualified stock options | — | — | — | — | — | — | — | (0.14 | ) | — | — | |||||||||||||||||||||||||||||
Release of disproportionate tax effects lodged in OCI | — | — | — | — | — | — | (0.73 | ) | — | — | — | |||||||||||||||||||||||||||||
Dividend payout ratio - operating | 28.07 | % | 27.27 | % | 28.30 | % | 24.00 | % | 23.81 | % | 27.10 | % | 23.31 | % | 20.27 | % | 17.32 | % | 9.91 | % | ||||||||||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (GAAP) | 56.73 | % | 56.82 | % | 57.94 | % | 57.83 | % | 63.03 | % | 57.31 | % | 59.95 | % | 59.80 | % | 63.96 | % | 58.26 | % | ||||||||||||||||||||
Merger-related and other charges | (0.90 | ) | (0.43 | ) | (2.17 | ) | (2.08 | ) | (6.11 | ) | (1.37 | ) | (3.28 | ) | (2.02 | ) | (5.45 | ) | — | |||||||||||||||||||||
Efficiency ratio - operating | 55.83 | % | 56.39 | % | 55.77 | % | 55.75 | % | 56.92 | % | 55.94 | % | 56.67 | % | 57.78 | % | 58.51 | % | 58.26 | % | ||||||||||||||||||||
Average equity to average assets reconciliation | ||||||||||||||||||||||||||||||||||||||||
Average equity to assets (GAAP) | 11.35 | % | 11.33 | % | 11.21 | % | 11.03 | % | 11.21 | % | 11.24 | % | 10.71 | % | 10.54 | % | 10.27 | % | 9.69 | % | ||||||||||||||||||||
Effect of goodwill and other intangibles | (2.31 | ) | (2.36 | ) | (2.38 | ) | (2.21 | ) | (1.69 | ) | (2.32 | ) | (1.42 | ) | (1.33 | ) | (0.53 | ) | (0.02 | ) | ||||||||||||||||||||
Average tangible equity to average assets | 9.04 | 8.97 | 8.83 | 8.82 | 9.52 | 8.92 | 9.29 | 9.21 | 9.74 | 9.67 | ||||||||||||||||||||||||||||||
Effect of preferred equity | — | — | — | — | — | — | — | (0.02 | ) | (0.08 | ) | (0.07 | ) | |||||||||||||||||||||||||||
Average tangible common equity to average assets | 9.04 | % | 8.97 | % | 8.83 | % | 8.82 | % | 9.52 | % | 8.92 | % | 9.29 | % | 9.19 | % | 9.66 | % | 9.60 | % | ||||||||||||||||||||
Tangible common equity to risk-weighted assets reconciliation(1) | ||||||||||||||||||||||||||||||||||||||||
Tier 1 capital ratio (Regulatory) | 12.41 | % | 12.25 | % | 11.94 | % | 11.61 | % | 12.24 | % | 12.41 | % | 12.24 | % | 11.23 | % | 11.45 | % | 12.06 | % | ||||||||||||||||||||
Effect of other comprehensive income | (0.44 | ) | (0.68 | ) | (0.57 | ) | (0.50 | ) | (0.29 | ) | (0.44 | ) | (0.29 | ) | (0.34 | ) | (0.38 | ) | (0.35 | ) | ||||||||||||||||||||
Effect of deferred tax limitation | 0.28 | 0.30 | 0.33 | 0.42 | 0.51 | 0.28 | 0.51 | 1.26 | 2.05 | 3.11 | ||||||||||||||||||||||||||||||
Effect of trust preferred | (0.26 | ) | (0.26 | ) | (0.34 | ) | (0.34 | ) | (0.36 | ) | (0.26 | ) | (0.36 | ) | (0.25 | ) | (0.08 | ) | (1.00 | ) | ||||||||||||||||||||
Effect of preferred equity | — | — | — | — | — | — | — | — | (0.15 | ) | — | |||||||||||||||||||||||||||||
Basel III intangibles transition adjustment | — | — | — | — | (0.05 | ) | — | (0.05 | ) | (0.06 | ) | (0.10 | ) | — | ||||||||||||||||||||||||||
Basel III disallowed investments | — | — | — | — | — | — | — | — | 0.03 | — | ||||||||||||||||||||||||||||||
Tangible common equity to risk-weighted assets | 11.99 | % | 11.61 | % | 11.36 | % | 11.19 | % | 12.05 | % | 11.99 | % | 12.05 | % | 11.84 | % | 12.82 | % | 13.82 | % |
(1) | Fourth quarter 2018 ratios are preliminary. |
5
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2018 | 2017 | Linked | Year | |||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Quarter | over Year | ||||||||||||||||||||||
(in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||||||||
Owner occupied commercial RE | $ | 1,648 | $ | 1,673 | $ | 1,682 | $ | 1,898 | $ | 1,924 | $ | (25 | ) | $ | (276 | ) | ||||||||||||
Income producing commercial RE | 1,812 | 1,788 | 1,821 | 1,677 | 1,595 | 24 | 217 | |||||||||||||||||||||
Commercial & industrial | 1,278 | 1,194 | 1,193 | 1,142 | 1,131 | 84 | 147 | |||||||||||||||||||||
Commercial construction | 796 | 761 | 735 | 691 | 712 | 35 | 84 | |||||||||||||||||||||
Equipment financing | 565 | 509 | 465 | 423 | - | 56 | 565 | |||||||||||||||||||||
Total commercial | 6,099 | 5,925 | 5,896 | 5,831 | 5,362 | 174 | 737 | |||||||||||||||||||||
Residential mortgage | 1,049 | 1,035 | 1,021 | 992 | 974 | 14 | 75 | |||||||||||||||||||||
Home equity lines of credit | 694 | 702 | 708 | 712 | 731 | (8 | ) | (37 | ) | |||||||||||||||||||
Residential construction | 211 | 198 | 195 | 190 | 183 | 13 | 28 | |||||||||||||||||||||
Consumer | 330 | 366 | 400 | 459 | 486 | (36 | ) | (156 | ) | |||||||||||||||||||
Total loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 157 | 647 | ||||||||||||||||
LOANS BY MARKET | ||||||||||||||||||||||||||||
North Georgia | $ | 981 | $ | 992 | $ | 1,001 | $ | 1,004 | $ | 1,019 | (11 | ) | (38 | ) | ||||||||||||||
Atlanta MSA | 1,507 | 1,493 | 1,533 | 1,513 | 1,510 | 14 | (3 | ) | ||||||||||||||||||||
North Carolina | 1,072 | 1,078 | 1,067 | 1,037 | 1,049 | (6 | ) | 23 | ||||||||||||||||||||
Coastal Georgia | 588 | 610 | 623 | 635 | 630 | (22 | ) | (42 | ) | |||||||||||||||||||
Gainesville MSA | 247 | 235 | 230 | 231 | 248 | 12 | (1 | ) | ||||||||||||||||||||
East Tennessee | 477 | 460 | 474 | 473 | 475 | 17 | 2 | |||||||||||||||||||||
South Carolina | 1,645 | 1,586 | 1,571 | 1,537 | 1,486 | 59 | 159 | |||||||||||||||||||||
Commercial Banking Solutions | 1,658 | 1,530 | 1,444 | 1,438 | 961 | 128 | 697 | |||||||||||||||||||||
Indirect auto | 208 | 242 | 277 | 316 | 358 | (34 | ) | (150 | ) | |||||||||||||||||||
Total loans | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | $ | 7,736 | 157 | 647 | ||||||||||||||||
6
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||
Owner occupied commercial RE | $ | 1,648 | $ | 1,924 | $ | 1,650 | $ | 1,571 | $ | 1,257 | ||||||||||
Income producing commercial RE | 1,812 | 1,595 | 1,282 | 1,021 | 767 | |||||||||||||||
Commercial & industrial | 1,278 | 1,131 | 1,070 | 785 | 710 | |||||||||||||||
Commercial construction | 796 | 712 | 634 | 518 | 364 | |||||||||||||||
Equipment financing | 565 | - | - | - | - | |||||||||||||||
Total commercial | 6,099 | 5,362 | 4,636 | 3,895 | 3,098 | |||||||||||||||
Residential mortgage | 1,049 | 974 | 857 | 764 | 614 | |||||||||||||||
Home equity lines of credit | 694 | 731 | 655 | 589 | 456 | |||||||||||||||
Residential construction | 211 | 183 | 190 | 176 | 131 | |||||||||||||||
Consumer installment | 330 | 486 | 583 | 571 | 373 | |||||||||||||||
Total loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 | ||||||||||
LOANS BY MARKET | ||||||||||||||||||||
North Georgia | $ | 981 | $ | 1,019 | $ | 1,097 | $ | 1,125 | $ | 1,163 | ||||||||||
Atlanta MSA | 1,507 | 1,510 | 1,399 | 1,259 | 1,243 | |||||||||||||||
North Carolina | 1,072 | 1,049 | 545 | 549 | 553 | |||||||||||||||
Coastal Georgia | 588 | 630 | 581 | 537 | 456 | |||||||||||||||
Gainesville MSA | 247 | 248 | 248 | 254 | 257 | |||||||||||||||
East Tennessee | 477 | 475 | 504 | 504 | 280 | |||||||||||||||
South Carolina | 1,645 | 1,486 | 1,233 | 819 | 30 | |||||||||||||||
Commercial Banking Solutions | 1,658 | 961 | 855 | 492 | 421 | |||||||||||||||
Indirect auto | 208 | 358 | 459 | 456 | 269 | |||||||||||||||
Total loans | $ | 8,383 | $ | 7,736 | $ | 6,921 | $ | 5,995 | $ | 4,672 |
7
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Qualiy
Fourth Quarter 2018 | Third Quarter 2018 | Second Quarter 2018 | ||||||||||||||||||||||||||||||||||
Nonperforming | Foreclosed | Total | Nonperforming | Foreclosed | Total | Nonperforming | Foreclosed | Total | ||||||||||||||||||||||||||||
(in thousands) | Loans | Properties | NPAs | Loans | Properties | NPAs | Loans | Properties | NPAs | |||||||||||||||||||||||||||
NONPERFORMING ASSETS BY CATEGORY | ||||||||||||||||||||||||||||||||||||
Owner occupied CRE | $ | 6,421 | $ | 170 | $ | 6,591 | $ | 4,884 | $ | 183 | $ | 5,067 | $ | 5,772 | $ | 812 | $ | 6,584 | ||||||||||||||||||
Income producing CRE | 1,160 | - | 1,160 | 1,194 | 156 | 1,350 | 991 | 455 | 1,446 | |||||||||||||||||||||||||||
Commercial & industrial | 1,417 | - | 1,417 | 1,516 | - | 1,516 | 2,180 | - | 2,180 | |||||||||||||||||||||||||||
Commercial construction | 605 | 421 | 1,026 | 825 | 522 | 1,347 | 613 | 576 | 1,189 | |||||||||||||||||||||||||||
Equipment financing | 2,677 | - | 2,677 | 1,181 | - | 1,181 | 1,075 | - | 1,075 | |||||||||||||||||||||||||||
Total commercial | 12,280 | 591 | 12,871 | 9,600 | 861 | 10,461 | 10,631 | 1,843 | 12,474 | |||||||||||||||||||||||||||
Residential mortgage | 8,035 | 654 | 8,689 | 8,928 | 424 | 9,352 | 7,918 | 184 | 8,102 | |||||||||||||||||||||||||||
Home equity lines of credit | 2,360 | 60 | 2,420 | 2,814 | - | 2,814 | 1,812 | 550 | 2,362 | |||||||||||||||||||||||||||
Residential construction | 288 | - | 288 | 455 | 51 | 506 | 637 | 20 | 657 | |||||||||||||||||||||||||||
Consumer | 815 | - | 815 | 733 | - | 733 | 819 | - | 819 | |||||||||||||||||||||||||||
Total NPAs | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||
NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||
North Georgia | $ | 6,527 | $ | 286 | $ | 6,813 | $ | 7,170 | $ | 361 | $ | 7,531 | $ | 7,583 | $ | 640 | $ | 8,223 | ||||||||||||||||||
Atlanta MSA | 1,578 | - | 1,578 | 1,778 | 132 | 1,910 | 1,928 | 132 | 2,060 | |||||||||||||||||||||||||||
North Carolina | 3,259 | 743 | 4,002 | 3,690 | 480 | 4,170 | 3,029 | 750 | 3,779 | |||||||||||||||||||||||||||
Coastal Georgia | 1,491 | - | 1,491 | 1,498 | - | 1,498 | 943 | - | 943 | |||||||||||||||||||||||||||
Gainesville MSA | 479 | - | 479 | 212 | - | 212 | 186 | - | 186 | |||||||||||||||||||||||||||
East Tennessee | 1,147 | - | 1,147 | 1,403 | 128 | 1,531 | 1,473 | 143 | 1,616 | |||||||||||||||||||||||||||
South Carolina | 4,123 | 276 | 4,399 | 3,280 | 235 | 3,515 | 3,093 | 362 | 3,455 | |||||||||||||||||||||||||||
Commercial Banking Solutions | 4,448 | - | 4,448 | 2,871 | - | 2,871 | 2,831 | 570 | 3,401 | |||||||||||||||||||||||||||
Indirect auto | 726 | - | 726 | 628 | - | 628 | 751 | - | 751 | |||||||||||||||||||||||||||
Total NPAs | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||
NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | $ | 26,240 | $ | 2,714 | $ | 28,954 | ||||||||||||||||||
Acquisitions | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Loans placed on non-accrual | 5,829 | - | 5,829 | 5,759 | - | 5,759 | 3,612 | - | 3,612 | |||||||||||||||||||||||||||
Payments received | (2,780 | ) | - | (2,780 | ) | (3,095 | ) | - | (3,095 | ) | (5,314 | ) | - | (5,314 | ) | |||||||||||||||||||||
Loan charge-offs | (933 | ) | - | (933 | ) | (1,588 | ) | - | (1,588 | ) | (2,065 | ) | - | (2,065 | ) | |||||||||||||||||||||
Foreclosures | (868 | ) | 955 | 87 | (363 | ) | 454 | 91 | (656 | ) | 984 | 328 | ||||||||||||||||||||||||
Property sales | - | (1,019 | ) | (1,019 | ) | - | (1,659 | ) | (1,659 | ) | - | (1,029 | ) | (1,029 | ) | |||||||||||||||||||||
Write downs | - | (112 | ) | (112 | ) | - | (166 | ) | (166 | ) | - | (106 | ) | (106 | ) | |||||||||||||||||||||
Net gains on sales | - | 145 | 145 | - | 110 | 110 | - | 34 | 34 | |||||||||||||||||||||||||||
Ending Balance | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 22,530 | $ | 1,336 | $ | 23,866 | $ | 21,817 | $ | 2,597 | $ | 24,414 | ||||||||||||||||||
Fourth Quarter 2018 | Third Quarter 2018 | Second Quarter 2018 | ||||||||||||||||||||||
Net Charge- | Net Charge- | Net Charge- | ||||||||||||||||||||||
Offs to | Offs to | Offs to | ||||||||||||||||||||||
Net | Average | Net | Average | Net | Average | |||||||||||||||||||
(in thousands) | Charge-Offs | Loans(1) | Charge-Offs | Loans(1) | Charge-Offs | Loans(1) | ||||||||||||||||||
NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
Owner occupied CRE | $ | (52 | ) | (0.01 | )% | $ | (251 | ) | (0.06 | )% | $ | (578 | ) | (0.13 | )% | |||||||||
Income producing CRE | 399 | 0.09 | 1 | - | 1,421 | 0.33 | ||||||||||||||||||
Commercial & industrial | (149 | ) | (0.05 | ) | 418 | 0.14 | 16 | 0.01 | ||||||||||||||||
Commercial construction | (230 | ) | (0.12 | ) | (43 | ) | (0.02 | ) | (107 | ) | (0.06 | ) | ||||||||||||
Equipment financing | 599 | 0.44 | 482 | 0.39 | (49 | ) | (0.04 | ) | ||||||||||||||||
Total commercial | 567 | 0.04 | 607 | 0.04 | 703 | 0.05 | ||||||||||||||||||
Residential mortgage | 290 | 0.11 | 171 | 0.07 | 11 | - | ||||||||||||||||||
Home equity lines of credit | 382 | 0.22 | 279 | 0.16 | 21 | 0.01 | ||||||||||||||||||
Residential construction | (36 | ) | (0.07 | ) | (164 | ) | (0.33 | ) | (58 | ) | (0.12 | ) | ||||||||||||
Consumer | 584 | 0.67 | 573 | 0.60 | 682 | 0.64 | ||||||||||||||||||
Total | $ | 1,787 | 0.09 | $ | 1,466 | 0.07 | $ | 1,359 | 0.07 | |||||||||||||||
NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
North Georgia | $ | 543 | 0.22 | % | $ | 483 | 0.19 | % | $ | 246 | 0.10 | % | ||||||||||||
Atlanta MSA | (159 | ) | (0.04 | ) | 99 | 0.03 | 103 | 0.03 | ||||||||||||||||
North Carolina | 68 | 0.03 | (87 | ) | (0.03 | ) | 1,268 | 0.48 | ||||||||||||||||
Coastal Georgia | (86 | ) | (0.06 | ) | 24 | 0.02 | 19 | 0.01 | ||||||||||||||||
Gainesville MSA | 333 | 0.56 | (48 | ) | (0.08 | ) | (2 | ) | - | |||||||||||||||
East Tennessee | (111 | ) | (0.09 | ) | (1 | ) | - | 76 | 0.06 | |||||||||||||||
South Carolina | 57 | 0.01 | 418 | 0.11 | (1,057 | ) | (0.27 | ) | ||||||||||||||||
Commercial Banking Solutions | 948 | 0.23 | 403 | 0.11 | 381 | 0.11 | ||||||||||||||||||
Indirect auto | 194 | 0.34 | 175 | 0.27 | 325 | 0.44 | ||||||||||||||||||
Total | $ | 1,787 | 0.09 | $ | 1,466 | 0.07 | $ | 1,359 | 0.07 |
(1) Annualized.
8
UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 112,087 | $ | 87,234 | $ | 420,383 | $ | 315,050 | ||||||||
Investment securities, including tax exempt of $1,140, $909, $4,189, and $2,216 | 21,237 | 19,023 | 77,685 | 72,388 | ||||||||||||
Deposits in banks and short-term investments | 530 | 500 | 2,012 | 2,282 | ||||||||||||
Total interest revenue | 133,854 | 106,757 | 500,080 | 389,720 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW and interest-bearing demand | 3,073 | 1,433 | 7,390 | 3,365 | ||||||||||||
Money market | 4,078 | 2,095 | 12,097 | 7,033 | ||||||||||||
Savings | 33 | 46 | 150 | 135 | ||||||||||||
Time | 7,006 | 2,272 | 19,906 | 6,529 | ||||||||||||
Total deposit interest expense | 14,190 | 5,846 | 39,543 | 17,062 | ||||||||||||
Short-term borrowings | 340 | 175 | 1,112 | 352 | ||||||||||||
Federal Home Loan Bank advances | 794 | 1,492 | 6,345 | 6,095 | ||||||||||||
Long-term debt | 3,651 | 1,736 | 14,330 | 10,226 | ||||||||||||
Total interest expense | 18,975 | 9,249 | 61,330 | 33,735 | ||||||||||||
Net interest revenue | 114,879 | 97,508 | 438,750 | 355,985 | ||||||||||||
Provision for credit losses | 2,100 | 1,200 | 9,500 | 3,800 | ||||||||||||
Net interest revenue after provision for credit losses | 112,779 | 96,308 | 429,250 | 352,185 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees | 9,166 | 8,770 | 35,997 | 38,295 | ||||||||||||
Mortgage loan and other related fees | 3,082 | 4,885 | 19,010 | 18,320 | ||||||||||||
Brokerage fees | 1,593 | 1,068 | 5,191 | 4,633 | ||||||||||||
Gains from sales of SBA/USDA loans | 2,493 | 3,102 | 9,277 | 10,493 | ||||||||||||
Securities gains (losses), net | 646 | (148 | ) | (656 | ) | 42 | ||||||||||
Other | 6,065 | 4,251 | 24,142 | 16,477 | ||||||||||||
Total noninterest income | 23,045 | 21,928 | 92,961 | 88,260 | ||||||||||||
Total revenue | 135,824 | 118,236 | 522,211 | 440,445 | ||||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and employee benefits | 45,631 | 41,042 | 181,015 | 153,098 | ||||||||||||
Communications and equipment | 6,206 | 5,217 | 21,277 | 19,660 | ||||||||||||
Occupancy | 5,842 | 5,542 | 22,781 | 20,344 | ||||||||||||
Advertising and public relations | 1,650 | 895 | 5,991 | 4,242 | ||||||||||||
Postage, printing and supplies | 1,520 | 1,825 | 6,416 | 5,952 | ||||||||||||
Professional fees | 4,105 | 3,683 | 15,540 | 12,074 | ||||||||||||
FDIC assessments and other regulatory charges | 1,814 | 1,776 | 8,491 | 6,534 | ||||||||||||
Amortization of intangibles | 1,420 | 1,760 | 6,846 | 4,845 | ||||||||||||
Merger-related and other charges | 965 | 6,841 | 5,414 | 13,901 | ||||||||||||
Other | 9,089 | 7,301 | 32,514 | 26,961 | ||||||||||||
Total noninterest expenses | 78,242 | 75,882 | 306,285 | 267,611 | ||||||||||||
Net income before income taxes | 57,582 | 42,354 | 215,926 | 172,834 | ||||||||||||
Income tax expense | 12,445 | 54,270 | 49,815 | 105,013 | ||||||||||||
Net income | $ | 45,137 | $ | (11,916 | ) | $ | 166,111 | $ | 67,821 | |||||||
Net income available to common shareholders | $ | 44,801 | $ | (11,986 | ) | $ | 164,927 | $ | 67,250 | |||||||
Earnings per common share: | ||||||||||||||||
Basic | 0.56 | (0.16 | ) | 2.07 | 0.92 | |||||||||||
Diluted | 0.56 | (0.16 | ) | 2.07 | 0.92 | |||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 79,884 | 76,768 | 79,662 | 73,247 | ||||||||||||
Diluted | 79,890 | 76,768 | 79,671 | 73,259 |
9
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets(Unaudited)
December 31, | December 31, | |||||||
(in thousands, except share and per share data) | 2018 | 2017 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 126,083 | $ | 129,108 | ||||
Interest-bearing deposits in banks | 201,182 | 185,167 | ||||||
Cash and cash equivalents | 327,265 | 314,275 | ||||||
Debt securities available for sale | 2,628,467 | 2,615,850 | ||||||
Debt securities held to maturity (fair value $268,803 and $321,276) | 274,407 | 321,094 | ||||||
Loans held for sale (includes $18,935 and $26,252 at fair value) | 18,935 | 32,734 | ||||||
Loans and leases, net of unearned income | 8,383,401 | 7,735,572 | ||||||
Less allowance for loan and lease losses | (61,203 | ) | (58,914 | ) | ||||
Loans, net | 8,322,198 | 7,676,658 | ||||||
Premises and equipment, net | 206,140 | 208,852 | ||||||
Bank owned life insurance | 192,616 | 188,970 | ||||||
Accrued interest receivable | 35,413 | 32,459 | ||||||
Net deferred tax asset | 64,224 | 88,049 | ||||||
Derivative financial instruments | 24,705 | 22,721 | ||||||
Goodwill and other intangible assets | 324,072 | 244,397 | ||||||
Other assets | 154,750 | 169,401 | ||||||
Total assets | $ | 12,573,192 | $ | 11,915,460 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 3,210,220 | $ | 3,087,797 | ||||
NOW and interest-bearing demand | 2,274,775 | 2,131,939 | ||||||
Money market | 2,097,526 | 2,016,748 | ||||||
Savings | 669,886 | 651,742 | ||||||
Time | 1,598,391 | 1,548,460 | ||||||
Brokered | 683,715 | 371,011 | ||||||
Total deposits | 10,534,513 | 9,807,697 | ||||||
Short-term borrowings | - | 50,000 | ||||||
Federal Home Loan Bank advances | 160,000 | 504,651 | ||||||
Long-term debt | 267,189 | 120,545 | ||||||
Derivative financial instruments | 26,433 | 25,376 | ||||||
Accrued expenses and other liabilities | 127,503 | 103,857 | ||||||
Total liabilities | 11,115,638 | 10,612,126 | ||||||
Shareholders' equity: | ||||||||
Common stock, $1 par value; 150,000,000 shares authorized; | ||||||||
79,234,077 and 77,579,561 shares issued and outstanding | 79,234 | 77,580 | ||||||
Common stock issuable; 674,499 and 607,869 shares | 10,744 | 9,083 | ||||||
Capital surplus | 1,499,584 | 1,451,814 | ||||||
Accumulated deficit | (90,419 | ) | (209,902 | ) | ||||
Accumulated other comprehensive loss | (41,589 | ) | (25,241 | ) | ||||
Total shareholders' equity | 1,457,554 | 1,303,334 | ||||||
Total liabilities and shareholders' equity | $ | 12,573,192 | $ | 11,915,460 | ||||
10
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 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) | $ | 8,306,270 | $ | 112,020 | 5.35 | % | $ | 7,560,451 | $ | 87,285 | 4.58 | % | ||||||||||||
Taxable securities(3) | 2,843,085 | 20,097 | 2.83 | 2,853,671 | 18,114 | 2.54 | ||||||||||||||||||
Tax-exempt securities (FTE)(1)(3) | 161,284 | 1,535 | 3.81 | 137,080 | 1,488 | 4.34 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 222,931 | 845 | 1.52 | 184,287 | 676 | 1.47 | ||||||||||||||||||
Total interest-earning assets (FTE) | 11,533,570 | 134,497 | 4.63 | 10,735,489 | 107,563 | 3.98 | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (61,992 | ) | (59,508 | ) | ||||||||||||||||||||
Cash and due from banks | 125,066 | 120,478 | ||||||||||||||||||||||
Premises and equipment | 214,590 | 209,042 | ||||||||||||||||||||||
Other assets(3) | 694,215 | 681,308 | ||||||||||||||||||||||
Total assets | $ | 12,505,449 | $ | 11,686,809 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW and interest-bearing demand | $ | 2,046,224 | 3,073 | 0.60 | $ | 2,078,239 | 1,433 | 0.27 | ||||||||||||||||
Money market | 2,215,444 | 4,078 | 0.73 | 2,243,279 | 2,095 | 0.37 | ||||||||||||||||||
Savings | 675,265 | 33 | 0.02 | 636,057 | 46 | 0.03 | ||||||||||||||||||
Time | 1,584,011 | 4,297 | 1.08 | 1,476,362 | 1,918 | 0.52 | ||||||||||||||||||
Brokered time deposits | 490,748 | 2,709 | 2.19 | 115,235 | 354 | 1.22 | ||||||||||||||||||
Total interest-bearing deposits | 7,011,692 | 14,190 | 0.80 | 6,549,172 | 5,846 | 0.35 | ||||||||||||||||||
Federal funds purchased and other borrowings | 55,095 | 340 | 2.45 | 39,704 | 175 | 1.75 | ||||||||||||||||||
Federal Home Loan Bank advances | 140,869 | 794 | 2.24 | 458,028 | 1,492 | 1.29 | ||||||||||||||||||
Long-term debt | 272,313 | 3,651 | 5.32 | 120,885 | 1,736 | 5.70 | ||||||||||||||||||
Total borrowed funds | 468,277 | 4,785 | 4.05 | 618,617 | 3,403 | 2.18 | ||||||||||||||||||
Total interest-bearing liabilities | 7,479,969 | 18,975 | 1.01 | 7,167,789 | 9,249 | 0.51 | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Noninterest-bearing deposits | 3,294,385 | 3,074,898 | ||||||||||||||||||||||
Other liabilities | 311,461 | 134,211 | ||||||||||||||||||||||
Total liabilities | 11,085,815 | 10,376,898 | ||||||||||||||||||||||
Shareholders' equity | 1,419,634 | 1,309,911 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,505,449 | $ | 11,686,809 | ||||||||||||||||||||
Net interest revenue (FTE) | $ | 115,522 | $ | 98,314 | ||||||||||||||||||||
Net interest-rate spread (FTE) | 3.62 | % | 3.47 | % | ||||||||||||||||||||
Net interest margin (FTE)(4) | 3.97 | % | 3.63 | % |
(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% in 2018 and 39% in 2017, 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 $59.5 million in 2018 and pretax unrealized gains of $3.32 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. |
11
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 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) | $ | 8,170,143 | $ | 420,001 | 5.14 | % | $ | 7,150,211 | $ | 315,138 | 4.41 | % | ||||||||||||
Taxable securities(3) | 2,745,715 | 73,496 | 2.68 | 2,761,983 | 70,172 | 2.54 | ||||||||||||||||||
Tax-exempt securities (FTE)(1)(3) | 152,855 | 5,641 | 3.69 | 85,415 | 3,627 | 4.25 | ||||||||||||||||||
Federal funds sold and other interest-earning assets | 213,137 | 2,968 | 1.39 | 164,314 | 2,966 | 1.81 | ||||||||||||||||||
Total interest-earning assets (FTE) | 11,281,850 | 502,106 | 4.45 | 10,161,923 | 391,903 | 3.86 | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Allowance for loan losses | (61,443 | ) | (60,602 | ) | ||||||||||||||||||||
Cash and due from banks | 135,345 | 107,053 | ||||||||||||||||||||||
Premises and equipment | 216,646 | 198,970 | ||||||||||||||||||||||
Other assets(3) | 711,671 | 607,174 | ||||||||||||||||||||||
Total assets | $ | 12,284,069 | $ | 11,014,518 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW and interest-bearing demand | $ | 2,018,404 | 7,390 | 0.37 | $ | 1,950,827 | 3,365 | 0.17 | ||||||||||||||||
Money market | 2,206,643 | 12,097 | 0.55 | 2,136,336 | 7,033 | 0.33 | ||||||||||||||||||
Savings | 672,735 | 150 | 0.02 | 591,831 | 135 | 0.02 | ||||||||||||||||||
Time | 1,547,221 | 12,585 | 0.81 | 1,338,859 | 5,417 | 0.40 | ||||||||||||||||||
Brokered time deposits | 347,072 | 7,321 | 2.11 | 108,891 | 1,112 | 1.02 | ||||||||||||||||||
Total interest-bearing deposits | 6,792,075 | 39,543 | 0.58 | 6,126,744 | 17,062 | 0.28 | ||||||||||||||||||
Federal funds purchased and other borrowings | 57,376 | 1,112 | 1.94 | 26,856 | 352 | 1.31 | ||||||||||||||||||
Federal Home Loan Bank advances | 328,871 | 6,345 | 1.93 | 576,472 | 6,095 | 1.06 | ||||||||||||||||||
Long-term debt | 290,004 | 14,330 | 4.94 | 156,327 | 10,226 | 6.54 | ||||||||||||||||||
Total borrowed funds | 676,251 | 21,787 | 3.22 | 759,655 | 16,673 | 2.19 | ||||||||||||||||||
Total interest-bearing liabilities | 7,468,326 | 61,330 | 0.82 | 6,886,399 | 33,735 | 0.49 | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Noninterest-bearing deposits | 3,207,625 | 2,823,005 | ||||||||||||||||||||||
Other liabilities | 227,980 | 124,832 | ||||||||||||||||||||||
Total liabilities | 10,903,931 | 9,834,236 | ||||||||||||||||||||||
Shareholders' equity | 1,380,138 | 1,180,282 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,284,069 | $ | 11,014,518 | ||||||||||||||||||||
Net interest revenue (FTE) | $ | 440,776 | $ | 358,168 | ||||||||||||||||||||
Net interest-rate spread (FTE) | 3.63 | % | 3.37 | % | ||||||||||||||||||||
Net interest margin (FTE)(4) | 3.91 | % | 3.52 | % |
(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% in 2018 and 39% in 2017, 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 $45.2 million in 2018 and pretax unrealized gains of $4.33 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. |
12
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 SC. The company’s banking subsidiary, United Community Bank, with $12.5 billion in assets is one of the southeast region’s largest full-service banks, operating 149 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 five 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 common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating 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.
13
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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