Exhibit 99.1
For Immediate Release
For more information:
Jefferson Harralson
Chief Financial Officer
(706) 781-2265
Jefferson_Harralson@ucbi.com
UNITED COMMUNITY BANKS, INC.
ANNOUNCES SECOND QUARTER EARNINGS
Diluted earnings per share up 11 percent, to 39 cents, from second quarter 2016
Excluding merger-related and other non-operating charges,
diluted operating EPS up 14 percent, to 41 cents
| · | Net interest revenue of $85.1 million, up $10.2 million or 14 percent from year ago |
| · | Net interest margin of 3.47 percent, up two basis points from first quarter and up 12 basis points from year ago |
| · | Return on assets of 1.06 percent, or 1.10 percent excluding merger-related and other charges |
| · | Efficiency ratio of 57.9 percent, or 56.2 percent excluding merger-related and other charges |
| · | Announced two acquisitions during the quarter |
BLAIRSVILLE, GA – July 26, 2017 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced strong second quarter results with disciplined expense management, sound credit quality and meaningful margin expansion. Net income was $28.3 million, or 39 cents per diluted share, compared with $25.3 million, or 35 cents per diluted share, for the second quarter of 2016.
On an operating basis, net income rose to $29.4 million for the second quarter of 2017 compared with $26.0 million for the second quarter of 2016. Second quarter 2017 operating net income excludes merger-related and executive retirement charges totaling $1.16 million, net of the associated income tax benefit. Second quarter 2016 operating net income excludes $731,000 in merger-related charges, net of the associated income tax benefit. On a per diluted share basis, operating net income was 41 cents for the second quarter of 2017 compared with 36 cents for the second quarter of 2016.
At June 30, 2017, preliminary regulatory capital ratios were as follows. Tier 1 Risk-Based of 11.9 percent; Total Risk-Based of 12.7 percent; Common Equity Tier 1 Risk-Based of 11.9 percent, and Tier 1 Leverage of 9.0 percent.
“From both financial and strategic perspectives, I am very pleased with our second quarter performance,” said Jimmy Tallent, chairman and chief executive officer. “It marks our twelfth consecutive quarter of double-digit growth in diluted operating earnings per share, which is a key driver of stock price appreciation. We accomplished this by growing loans and deposits in a disciplined manner that slightly widened our net interest margin and maintained our outstanding credit quality.
“Excluding merger-related and other non-operating charges, our second quarter operating efficiency ratio improved to 56.2 percent, surpassing the fourth quarter record which was the best in more than a decade,” Tallent continued. “Including those charges, the efficiency ratio was 57.9 percent. From a financial perspective, our bankers delivered solid performance by every measure.”
Tallent said the second quarter was also remarkable from a strategic perspective. “We announced two strategic partnerships during the quarter that will expand and enhance our footprint in dynamic, high-growth markets,” he said. “On April 20, we announced the Horry County State Bank acquisition which will close in the third quarter and significantly enhance our presence in the Myrtle Beach area along the South Carolina coast. The acquisition of Horry County State Bank is part of our larger, ongoing expansion strategy in the high-growth South Carolina coastal markets.
“On June 27, we announced our planned acquisition of Four Oaks Bank & Trust Company, which should close in the fourth quarter and will extend our footprint farther east in North Carolina to the fast-growing Raleigh MSA. We have long sought to enter this market and are delighted to find an exceptional partner in Four Oaks. I could not be more pleased with these two partnerships and look forward to them becoming part of United.
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“Second quarter loan production was $667 million,” Tallent added. “Linked-quarter loan growth was $76 million, or four percent annualized. Our community banks originated $461 million in loans, while our recently renamed Commercial Banking Solutions group produced $166 million.”
Commercial Banking Solutions, previously named Specialized Lending, encompasses commercial lending for income property, middle market, SBA, asset-based, senior care, builder finance and recently announced renewable energy.
Second quarter net interest revenue totaled $85.1 million, up $10.2 million from the second quarter of 2016 and up $1.6 million from the first quarter. The increases from both periods reflect growth in loans and deposits and net interest margin expansions of 12 basis points from a year ago and two basis points from the first quarter, mostly driven by rising short-term interest rates. The increase in net interest revenue from a year ago also reflects the acquisition of Tidelands Bank which was completed on July 1, 2016. Tidelands Bank results are included in United’s financial results from the acquisition date.
The second quarter provision for credit losses was $800,000, equal to the first quarter provision. This compares with a provision recovery of $300,000 in the second quarter of 2016. Second quarter net charge-offs totaled $1.6 million, compared with $1.7 million in both the second quarter of 2016 and the first quarter of 2017. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were .24 percent of total assets at June 30, 2017, compared with .28 percent at June 30, 2016 and .23 percent at March 31, 2017.
“Our second quarter provision for loan losses reflects continued strong, steady credit quality and a low level of net charge-offs,” Tallent commented. “Our credit quality indicators remain favorable and our outlook is for that to continue. We also expect our provision levels to gradually increase during the year due to loan growth, while our allowance and the related ratio to total loans will decline slightly.”
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Second quarter fee revenue totaled $23.7 million, up $188,000 from a year ago and up $1.61 million from the first quarter. The increase from the first quarter was mostly in mortgage fees, gains from sales of SBA loans and other fee revenue. The increase from a year ago was mostly in mortgage fees. Mortgage fees were up $363,000 from a year ago, and $387,000 from the first quarter. In the second quarter we closed 888 loans totaling $204 million compared with 697 loans totaling $151 million in the first quarter and 853 loans totaling $182 million in the second quarter of 2016. Gains from sales of SBA loans were down $175,000 from a year ago but were up $667,000 from the first quarter following a seasonal first quarter decline. Other fee revenue was up $718,000 from the first quarter mostly due to higher customer derivative fees and higher earnings from bank-owned life insurance assets.
Operating expenses were $63.2 million for the second quarter, compared with $58.1 million for the second quarter of 2016 and $62.8 million for the first quarter. Included in operating expenses are merger-related and executive retirement charges of $1.83 million in the second quarter, merger-related charges of $1.18 million in the second quarter of 2016, and merger-related and branch closure charges of $2.05 million in the first quarter of 2017. Excluding these charges, second quarter operating expenses were $61.4 million compared with $56.9 million a year ago and $60.8 million for the first quarter. The $627,000 increase from the first quarter, though partially offset by lower professional fees, was mostly due to an increase in salaries and employee benefit costs following annual staff compensation increases that went into effect on April 1.
The overall increase in other expenses resulted from higher travel-related costs, internet banking service provider charges, and higher lending support costs. The decrease in professional fees was due to elevated costs in the first quarter to assist with model development for United’s stress testing project. The increase in operating expenses from a year ago reflects additional expense following the acquisition of Tidelands Bank on July 1, 2016.
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Income tax expense for the second quarter totaled $16.5 million compared with $15.4 million a year ago and $18.5 million in the first quarter. The first quarter was elevated due to a $3.4 million non-cash charge to release income taxes on hedge instruments that were held in other comprehensive income during the time in which United had a full valuation allowance on our deferred tax asset.
Tallent concluded, “Our bankers continue to do what they do best and that is take care of their customers by delivering the highest level of courteous service. Their passion and commitment drive our performance and are reflected in our second quarter financial results. I look forward to the opportunities that lie ahead and am excited about completing the acquisitions of Horry County State Bank and Four Oaks Bank & Trust Company. These two exceptional banks are outstanding strategic partners in key growth markets and share our passion for banking and our commitment to customer service. I look forward to welcoming them aboard and for the opportunities that these acquisitions create to recruit other talented bankers from within these markets into the United family.”
Conference Call
United will hold a conference call today, Wednesday, July 26, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 47369140. 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 $10.8 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 134 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. In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast. In 2017, for the fourth 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.
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Non-GAAP Financial Measures
This News 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 net income available to common shareholders,” “operating diluted income per common 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.
Safe Harbor
This News Release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission, including our 2016 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.
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| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Selected Financial Information |
| Second | For the Six | |||||||||||||||||||||||||||||||||||
| 2017 | 2016 | Quarter | Months Ended | YTD | ||||||||||||||||||||||||||||||||
| Second | First | Fourth | Third | Second | 2017-2016 | June 30, | 2017-2016 | |||||||||||||||||||||||||||||
| (in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | 2017 | 2016 | Change | |||||||||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 93,166 | $ | 90,958 | $ | 87,778 | $ | 85,439 | $ | 81,082 | $ | 184,124 | $ | 161,803 | ||||||||||||||||||||||
| Interest expense | 8,018 | 7,404 | 6,853 | 6,450 | 6,164 | 15,422 | 11,933 | |||||||||||||||||||||||||||||
| Net interest revenue | 85,148 | 83,554 | 80,925 | 78,989 | 74,918 | 14 | % | 168,702 | 149,870 | 13 | % | |||||||||||||||||||||||||
| Provision for credit losses | 800 | 800 | - | (300 | ) | (300 | ) | 1,600 | (500 | ) | ||||||||||||||||||||||||||
| Fee revenue | 23,685 | 22,074 | 25,233 | 26,361 | 23,497 | 1 | 45,759 | 42,103 | 9 | |||||||||||||||||||||||||||
| Total revenue | 108,033 | 104,828 | 106,158 | 105,650 | 98,715 | 9 | 212,861 | 192,473 | 11 | |||||||||||||||||||||||||||
| Expenses | 63,229 | 62,826 | 61,321 | 64,023 | 58,060 | 9 | 126,055 | 115,945 | 9 | |||||||||||||||||||||||||||
| Income before income tax expense | 44,804 | 42,002 | 44,837 | 41,627 | 40,655 | 10 | 86,806 | 76,528 | 13 | |||||||||||||||||||||||||||
| Income tax expense | 16,537 | 18,478 | 17,616 | 15,753 | 15,389 | 7 | 35,015 | 28,967 | 21 | |||||||||||||||||||||||||||
| Net income | 28,267 | 23,524 | 27,221 | 25,874 | 25,266 | 12 | 51,791 | 47,561 | 9 | |||||||||||||||||||||||||||
| Preferred dividends | - | - | - | - | - | - | 21 | |||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 28,267 | $ | 23,524 | $ | 27,221 | $ | 25,874 | $ | 25,266 | 12 | $ | 51,791 | $ | 47,540 | 9 | ||||||||||||||||||||
| Merger-related and other charges | 1,830 | 2,054 | 1,141 | 3,152 | 1,176 | 3,884 | 3,829 | |||||||||||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (675 | ) | (758 | ) | (432 | ) | (1,193 | ) | (445 | ) | (1,433 | ) | (1,449 | ) | ||||||||||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | 976 | - | - | - | - | |||||||||||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | 3,400 | - | - | - | 3,400 | - | |||||||||||||||||||||||||||||
| Net income available to common shareholders - operating(1) | $ | 29,422 | $ | 28,220 | $ | 28,906 | $ | 27,833 | $ | 25,997 | 13 | $ | 57,642 | $ | 49,920 | 15 | ||||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||||||||||
| Diluted net income - GAAP | $ | .39 | $ | .33 | $ | .38 | $ | .36 | $ | .35 | 11 | $ | .72 | $ | .66 | 9 | ||||||||||||||||||||
| Diluted net income - operating (1) | .41 | .39 | .40 | .39 | .36 | 14 | .80 | .69 | 16 | |||||||||||||||||||||||||||
| Cash dividends declared | .09 | .09 | .08 | .08 | .07 | .18 | .14 | |||||||||||||||||||||||||||||
| Book value | 15.83 | 15.40 | 15.06 | 15.12 | 14.80 | 7 | 15.83 | 14.80 | 7 | |||||||||||||||||||||||||||
| Tangible book value(3) | 13.74 | 13.30 | 12.95 | 13.00 | 12.84 | 7 | 13.74 | 12.84 | 7 | |||||||||||||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||||||||||
| Return on common equity - GAAP(2)(4) | 9.98 | % | 8.54 | % | 9.89 | % | 9.61 | % | 9.54 | % | 9.27 | % | 9.06 | % | ||||||||||||||||||||||
| Return on common equity - operating(1)(2)(4) | 10.39 | 10.25 | 10.51 | 10.34 | 9.81 | 10.32 | 9.51 | |||||||||||||||||||||||||||||
| Return on tangible common equity - operating(1)(2)(3)(4) | 12.19 | 12.10 | 12.47 | 12.45 | 11.56 | 12.15 | 11.24 | |||||||||||||||||||||||||||||
| Return on assets - GAAP(4) | 1.06 | .89 | 1.03 | 1.00 | 1.04 | .98 | .98 | |||||||||||||||||||||||||||||
| Return on assets - operating(1)(4) | 1.10 | 1.07 | 1.10 | 1.08 | 1.07 | 1.09 | 1.03 | |||||||||||||||||||||||||||||
| Dividend payout ratio - GAAP | 23.08 | 27.27 | 21.05 | 22.22 | 20.00 | 25.00 | 21.21 | |||||||||||||||||||||||||||||
| Dividend payout ratio - operating(1) | 21.95 | 23.08 | 20.00 | 20.51 | 19.44 | 22.50 | 20.29 | |||||||||||||||||||||||||||||
| Net interest margin (fully taxable equivalent)(4) | 3.47 | 3.45 | 3.34 | 3.34 | 3.35 | 3.46 | 3.38 | |||||||||||||||||||||||||||||
| Efficiency ratio - GAAP | 57.89 | 59.29 | 57.65 | 60.78 | 59.02 | 58.58 | 60.44 | |||||||||||||||||||||||||||||
| Efficiency ratio - operating (1) | 56.21 | 57.35 | 56.58 | 57.79 | 57.82 | 56.77 | 58.45 | |||||||||||||||||||||||||||||
| Average equity to average assets | 10.49 | 10.24 | 10.35 | 10.38 | 10.72 | 10.36 | 10.72 | |||||||||||||||||||||||||||||
| Average tangible equity to average assets(3) | 9.23 | 8.96 | 9.04 | 8.98 | 9.43 | 9.09 | 9.42 | |||||||||||||||||||||||||||||
| Average tangible common equity to average assets(3) | 9.23 | 8.96 | 9.04 | 8.98 | 9.43 | 9.09 | 9.38 | |||||||||||||||||||||||||||||
| Tangible common equity to risk-weighted assets(3)(5) | 12.44 | 12.07 | 11.84 | 12.22 | 12.87 | 12.44 | 12.87 | |||||||||||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
| Nonperforming loans | $ | 23,095 | $ | 19,812 | $ | 21,539 | $ | 21,572 | $ | 21,348 | 8 | $ | 23,095 | $ | 21,348 | 8 | ||||||||||||||||||||
| Foreclosed properties | 2,739 | 5,060 | 7,949 | 9,187 | 6,176 | (56 | ) | 2,739 | 6,176 | (56 | ) | |||||||||||||||||||||||||
| Total nonperforming assets (NPAs) | 25,834 | 24,872 | 29,488 | 30,759 | 27,524 | (6 | ) | 25,834 | 27,524 | (6 | ) | |||||||||||||||||||||||||
| Allowance for loan losses | 59,500 | 60,543 | 61,422 | 62,961 | 64,253 | (7 | ) | 59,500 | 64,253 | (7 | ) | |||||||||||||||||||||||||
| Net charge-offs | 1,623 | 1,679 | 1,539 | 1,359 | 1,730 | (6 | ) | 3,302 | 3,868 | (15 | ) | |||||||||||||||||||||||||
| Allowance for loan losses to loans | .85 | % | .87 | % | .89 | % | .94 | % | 1.02 | % | .85 | % | 1.02 | % | ||||||||||||||||||||||
| Net charge-offs to average loans(4) | .09 | .10 | .09 | .08 | .11 | .10 | .13 | |||||||||||||||||||||||||||||
| NPAs to loans and foreclosed properties | .37 | .36 | .43 | .46 | .44 | .37 | .44 | |||||||||||||||||||||||||||||
| NPAs to total assets | .24 | .23 | .28 | .30 | .28 | .24 | .28 | |||||||||||||||||||||||||||||
| AVERAGE BALANCES($ in millions) | ||||||||||||||||||||||||||||||||||||
| Loans | $ | 6,980 | $ | 6,904 | $ | 6,814 | $ | 6,675 | $ | 6,151 | 13 | $ | 6,942 | $ | 6,077 | 14 | ||||||||||||||||||||
| Investment securities | 2,775 | 2,822 | 2,690 | 2,610 | 2,747 | 1 | 2,798 | 2,733 | 2 | |||||||||||||||||||||||||||
| Earning assets | 9,899 | 9,872 | 9,665 | 9,443 | 9,037 | 10 | 9,885 | 8,956 | 10 | |||||||||||||||||||||||||||
| Total assets | 10,704 | 10,677 | 10,484 | 10,281 | 9,809 | 9 | 10,691 | 9,721 | 10 | |||||||||||||||||||||||||||
| Deposits | 8,659 | 8,592 | 8,552 | 8,307 | 7,897 | 10 | 8,626 | 7,922 | 9 | |||||||||||||||||||||||||||
| Shareholders’ equity | 1,123 | 1,093 | 1,085 | 1,067 | 1,051 | 7 | 1,108 | 1,042 | 6 | |||||||||||||||||||||||||||
| Common shares - basic(thousands) | 71,810 | 71,700 | 71,641 | 71,556 | 72,202 | (1 | ) | 71,798 | 72,187 | (1 | ) | |||||||||||||||||||||||||
| Common shares - diluted(thousands) | 71,820 | 71,708 | 71,648 | 71,561 | 72,207 | (1 | ) | 71,809 | 72,191 | (1 | ) | |||||||||||||||||||||||||
| AT PERIOD END($ in millions) | ||||||||||||||||||||||||||||||||||||
| Loans | $ | 7,041 | $ | 6,965 | $ | 6,921 | $ | 6,725 | $ | 6,287 | 12 | $ | 7,041 | $ | 6,287 | 12 | ||||||||||||||||||||
| Investment securities | 2,787 | 2,767 | 2,762 | 2,560 | 2,677 | 4 | 2,787 | 2,677 | 4 | |||||||||||||||||||||||||||
| Total assets | 10,837 | 10,732 | 10,709 | 10,298 | 9,928 | 9 | 10,837 | 9,928 | 9 | |||||||||||||||||||||||||||
| Deposits | 8,736 | 8,752 | 8,638 | 8,442 | 7,857 | 11 | 8,736 | 7,857 | 11 | |||||||||||||||||||||||||||
| Shareholders’ equity | 1,133 | 1,102 | 1,076 | 1,079 | 1,060 | 7 | 1,133 | 1,060 | 7 | |||||||||||||||||||||||||||
| Common shares outstanding(thousands) | 70,981 | 70,973 | 70,899 | 70,861 | 71,122 | - | 70,981 | 71,122 | - | |||||||||||||||||||||||||||
(1)Excludes merger-related and other charges, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options.(2) Net income available to common shareholders, which is net of 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) Second quarter 2017 ratio is preliminary.
| UNITED COMMUNITY BANKS, INC. |
| Non-GAAP Performance Measures Reconciliation |
| Selected Financial Information |
| 2017 | 2016 | For the Six Months Ended | ||||||||||||||||||||||||||
| Second | First | Fourth | Third | Second | June 30, | |||||||||||||||||||||||
| (in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Quarter | 2017 | 2016 | |||||||||||||||||||||
| Expense reconciliation | ||||||||||||||||||||||||||||
| Expenses (GAAP) | $ | 63,229 | $ | 62,826 | $ | 61,321 | $ | 64,023 | $ | 58,060 | $ | 126,055 | $ | 115,945 | ||||||||||||||
| Merger-related and other charges | (1,830 | ) | (2,054 | ) | (1,141 | ) | (3,152 | ) | (1,176 | ) | (3,884 | ) | (3,829 | ) | ||||||||||||||
| Expenses - operating | $ | 61,399 | $ | 60,772 | $ | 60,180 | $ | 60,871 | $ | 56,884 | $ | 122,171 | $ | 112,116 | ||||||||||||||
| Net income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 28,267 | $ | 23,524 | $ | 27,221 | $ | 25,874 | $ | 25,266 | $ | 51,791 | $ | 47,561 | ||||||||||||||
| Merger-related and other charges | 1,830 | 2,054 | 1,141 | 3,152 | 1,176 | 3,884 | 3,829 | |||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (675 | ) | (758 | ) | (432 | ) | (1,193 | ) | (445 | ) | (1,433 | ) | (1,449 | ) | ||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | 976 | - | - | - | - | |||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | 3,400 | - | - | - | 3,400 | - | |||||||||||||||||||||
| Net income - operating | $ | 29,422 | $ | 28,220 | $ | 28,906 | $ | 27,833 | $ | 25,997 | $ | 57,642 | $ | 49,941 | ||||||||||||||
| Net income available to common shareholders reconciliation | ||||||||||||||||||||||||||||
| Net income available to common shareholders (GAAP) | $ | 28,267 | $ | 23,524 | $ | 27,221 | $ | 25,874 | $ | 25,266 | $ | 51,791 | $ | 47,540 | ||||||||||||||
| Merger-related and other charges | 1,830 | 2,054 | 1,141 | 3,152 | 1,176 | 3,884 | 3,829 | |||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (675 | ) | (758 | ) | (432 | ) | (1,193 | ) | (445 | ) | (1,433 | ) | (1,449 | ) | ||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | 976 | - | - | - | - | |||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | 3,400 | - | - | - | 3,400 | - | |||||||||||||||||||||
| Net income available to common shareholders - operating | $ | 29,422 | $ | 28,220 | $ | 28,906 | $ | 27,833 | $ | 25,997 | $ | 57,642 | $ | 49,920 | ||||||||||||||
| Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | .39 | $ | .33 | $ | .38 | $ | .36 | $ | .35 | $ | .72 | $ | .66 | ||||||||||||||
| Merger-related and other charges | .02 | .01 | .01 | .03 | .01 | .03 | .03 | |||||||||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | .01 | - | - | - | - | |||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | .05 | - | - | - | .05 | - | |||||||||||||||||||||
| Diluted income per common share - operating | $ | .41 | $ | .39 | $ | .40 | $ | .39 | $ | .36 | $ | .80 | $ | .69 | ||||||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 15.83 | $ | 15.40 | $ | 15.06 | $ | 15.12 | $ | 14.80 | $ | 15.83 | $ | 14.80 | ||||||||||||||
| Effect of goodwill and other intangibles | (2.09 | ) | (2.10 | ) | (2.11 | ) | (2.12 | ) | (1.96 | ) | (2.09 | ) | (1.96 | ) | ||||||||||||||
| Tangible book value per common share | $ | 13.74 | $ | 13.30 | $ | 12.95 | $ | 13.00 | $ | 12.84 | $ | 13.74 | $ | 12.84 | ||||||||||||||
| Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
| Return on common equity (GAAP) | 9.98 | % | 8.54 | % | 9.89 | % | 9.61 | % | 9.54 | % | 9.27 | % | 9.06 | % | ||||||||||||||
| Merger-related and other charges | .41 | .47 | .26 | .73 | .27 | .44 | .45 | |||||||||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | .36 | - | - | - | - | |||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | 1.24 | - | - | - | .61 | - | |||||||||||||||||||||
| Return on common equity - operating | 10.39 | 10.25 | 10.51 | 10.34 | 9.81 | 10.32 | 9.51 | |||||||||||||||||||||
| Effect of goodwill and other intangibles | 1.80 | 1.85 | 1.96 | 2.11 | 1.75 | 1.83 | 1.73 | |||||||||||||||||||||
| Return on tangible common equity - operating | 12.19 | % | 12.10 | % | 12.47 | % | 12.45 | % | 11.56 | % | 12.15 | % | 11.24 | % | ||||||||||||||
| Return on assets reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 1.06 | % | .89 | % | 1.03 | % | 1.00 | % | 1.04 | % | .98 | % | .98 | % | ||||||||||||||
| Merger-related and other charges | .04 | .05 | .03 | .08 | .03 | .05 | .05 | |||||||||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | .04 | - | - | - | - | |||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | .13 | - | - | - | .06 | - | |||||||||||||||||||||
| Return on assets - operating | 1.10 | % | 1.07 | % | 1.10 | % | 1.08 | % | 1.07 | % | 1.09 | % | 1.03 | % | ||||||||||||||
| Dividend payout ratio reconciliation | ||||||||||||||||||||||||||||
| Dividend payout ratio (GAAP) | 23.08 | % | 27.27 | % | 21.05 | % | 22.22 | % | 20.00 | % | 25.00 | % | 21.21 | % | ||||||||||||||
| Merger-related and other charges | (1.13 | ) | (.98 | ) | (.54 | ) | (1.71 | ) | (.56 | ) | (1.00 | ) | (.92 | ) | ||||||||||||||
| Impairment of deferred tax asset on canceled non-qualified stock options | - | - | (.51 | ) | - | - | - | - | ||||||||||||||||||||
| Release of disproportionate tax effects lodged in OCI | - | (3.21 | ) | - | - | - | (1.50 | ) | - | |||||||||||||||||||
| Dividend payout ratio - operating | 21.95 | % | 23.08 | % | 20.00 | % | 20.51 | % | 19.44 | % | 22.50 | % | 20.29 | % | ||||||||||||||
| Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 57.89 | % | 59.29 | % | 57.65 | % | 60.78 | % | 59.02 | % | 58.58 | % | 60.44 | % | ||||||||||||||
| Merger-related and other charges | (1.68 | ) | (1.94 | ) | (1.07 | ) | (2.99 | ) | (1.20 | ) | (1.81 | ) | (1.99 | ) | ||||||||||||||
| Efficiency ratio - operating | 56.21 | % | 57.35 | % | 56.58 | % | 57.79 | % | 57.82 | % | 56.77 | % | 58.45 | % | ||||||||||||||
| Average equity to assets reconciliation | ||||||||||||||||||||||||||||
| Equity to assets (GAAP) | 10.49 | % | 10.24 | % | 10.35 | % | 10.38 | % | 10.72 | % | 10.36 | % | 10.72 | % | ||||||||||||||
| Effect of goodwill and other intangibles | (1.26 | ) | (1.28 | ) | (1.31 | ) | (1.40 | ) | (1.29 | ) | (1.27 | ) | (1.30 | ) | ||||||||||||||
| Tangible equity to assets | 9.23 | 8.96 | 9.04 | 8.98 | 9.43 | 9.09 | 9.42 | |||||||||||||||||||||
| Effect of preferred equity | - | - | - | - | - | - | (.04 | ) | ||||||||||||||||||||
| Tangible common equity to assets | 9.23 | % | 8.96 | % | 9.04 | % | 8.98 | % | 9.43 | % | 9.09 | % | 9.38 | % | ||||||||||||||
| Tangible common equity to risk-weighted assets reconciliation(1) | ||||||||||||||||||||||||||||
| Tier 1 capital ratio (Regulatory) | 11.92 | % | 11.46 | % | 11.23 | % | 11.04 | % | 11.44 | % | 11.92 | % | 11.44 | % | ||||||||||||||
| Effect of other comprehensive income | (.15 | ) | (.24 | ) | (.34 | ) | - | (.06 | ) | (.15 | ) | (.06 | ) | |||||||||||||||
| Effect of deferred tax limitation | .94 | 1.13 | 1.26 | 1.50 | 1.63 | .94 | 1.63 | |||||||||||||||||||||
| Effect of trust preferred | (.25 | ) | (.25 | ) | (.25 | ) | (.26 | ) | (.08 | ) | (.25 | ) | (.08 | ) | ||||||||||||||
| Basel III intangibles transition adjustment | (.02 | ) | (.03 | ) | (.06 | ) | (.06 | ) | (.06 | ) | (.02 | ) | (.06 | ) | ||||||||||||||
| Tangible common equity to risk-weighted assets | 12.44 | % | 12.07 | % | 11.84 | % | 12.22 | % | 12.87 | % | 12.44 | % | 12.87 | % | ||||||||||||||
(1) Second quarter 2017 ratios are preliminary.
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Loan Portfolio Composition at Period-End |
| 2017 | 2016 | Linked | Year over | |||||||||||||||||||||||||
| Second | First | Fourth | Third | Second | Quarter | Year | ||||||||||||||||||||||
| (in millions) | Quarter | Quarter | Quarter | Quarter | Quarter | Change | Change | |||||||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||||||||
| Owner occupied commercial RE | $ | 1,723 | $ | 1,633 | $ | 1,650 | $ | 1,587 | $ | 1,527 | $ | 90 | $ | 196 | ||||||||||||||
| Income producing commercial RE | 1,342 | 1,297 | 1,282 | 1,277 | 1,101 | 45 | 241 | |||||||||||||||||||||
| Commercial & industrial | 1,088 | 1,080 | 1,070 | 994 | 925 | 8 | 163 | |||||||||||||||||||||
| Commercial construction | 587 | 667 | 634 | 567 | 565 | (80 | ) | 22 | ||||||||||||||||||||
| Total commercial | 4,740 | 4,677 | 4,636 | 4,425 | 4,118 | 63 | 622 | |||||||||||||||||||||
| Residential mortgage | 881 | 860 | 857 | 814 | 784 | 21 | 97 | |||||||||||||||||||||
| Home equity lines of credit | 665 | 659 | 655 | 693 | 616 | 6 | 49 | |||||||||||||||||||||
| Residential construction | 193 | 197 | 190 | 200 | 170 | (4 | ) | 23 | ||||||||||||||||||||
| Consumer installment | 562 | 572 | 583 | 593 | 599 | (10 | ) | (37 | ) | |||||||||||||||||||
| Total loans | $ | 7,041 | $ | 6,965 | $ | 6,921 | $ | 6,725 | $ | 6,287 | 76 | 754 | ||||||||||||||||
| LOANS BY MARKET | ||||||||||||||||||||||||||||
| North Georgia | $ | 1,065 | $ | 1,076 | $ | 1,097 | $ | 1,110 | $ | 1,097 | (11 | ) | (32 | ) | ||||||||||||||
| Atlanta MSA | 1,445 | 1,408 | 1,399 | 1,332 | 1,314 | 37 | 131 | |||||||||||||||||||||
| North Carolina | 541 | 541 | 545 | 548 | 543 | - | (2 | ) | ||||||||||||||||||||
| Coastal Georgia | 623 | 591 | 581 | 565 | 541 | 32 | 82 | |||||||||||||||||||||
| Gainesville MSA | 246 | 252 | 248 | 236 | 240 | (6 | ) | 6 | ||||||||||||||||||||
| East Tennessee | 486 | 483 | 504 | 506 | 509 | 3 | (23 | ) | ||||||||||||||||||||
| South Carolina | 1,260 | 1,243 | 1,233 | 1,199 | 862 | 17 | 398 | |||||||||||||||||||||
| Commercial Banking Solutions | 926 | 911 | 855 | 763 | 706 | 15 | 220 | |||||||||||||||||||||
| Indirect auto | 449 | 460 | 459 | 466 | 475 | (11 | ) | (26 | ) | |||||||||||||||||||
| Total loans | $ | 7,041 | $ | 6,965 | $ | 6,921 | $ | 6,725 | $ | 6,287 | 76 | 754 | ||||||||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Financial Highlights |
| Credit Quality |
| Second Quarter 2017 | First Quarter 2017 | Fourth Quarter 2016 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 5,248 | $ | 580 | $ | 5,828 | $ | 6,135 | $ | 1,238 | $ | 7,373 | $ | 7,373 | $ | 3,145 | $ | 10,518 | ||||||||||||||||||
| Income producing CRE | 2,587 | - | 2,587 | 1,540 | 21 | 1,561 | 1,324 | 36 | 1,360 | |||||||||||||||||||||||||||
| Commercial & industrial | 1,010 | - | 1,010 | 929 | - | 929 | 966 | - | 966 | |||||||||||||||||||||||||||
| Commercial construction | 2,530 | 611 | 3,141 | 1,069 | 2,825 | 3,894 | 1,538 | 2,977 | 4,515 | |||||||||||||||||||||||||||
| Total commercial | 11,375 | 1,191 | 12,566 | 9,673 | 4,084 | 13,757 | 11,201 | 6,158 | 17,359 | |||||||||||||||||||||||||||
| Residential mortgage | 7,886 | 457 | 8,343 | 6,455 | 660 | 7,115 | 6,368 | 1,260 | 7,628 | |||||||||||||||||||||||||||
| Home equity lines of credit | 2,152 | 201 | 2,353 | 1,848 | 261 | 2,109 | 1,831 | 531 | 2,362 | |||||||||||||||||||||||||||
| Residential construction | 287 | 890 | 1,177 | 417 | 55 | 472 | 776 | - | 776 | |||||||||||||||||||||||||||
| Consumer installment | 1,395 | - | 1,395 | 1,419 | - | 1,419 | 1,363 | - | 1,363 | |||||||||||||||||||||||||||
| Total NPAs | $ | 23,095 | $ | 2,739 | $ | 25,834 | $ | 19,812 | $ | 5,060 | $ | 24,872 | $ | 21,539 | $ | 7,949 | $ | 29,488 | ||||||||||||||||||
| NONPERFORMING ASSETS BY MARKET | ||||||||||||||||||||||||||||||||||||
| North Georgia | $ | 5,449 | $ | 225 | $ | 5,674 | $ | 5,344 | $ | 570 | $ | 5,914 | $ | 5,278 | $ | 856 | $ | 6,134 | ||||||||||||||||||
| Atlanta MSA | 906 | 423 | 1,329 | 715 | 645 | 1,360 | 1,259 | 716 | 1,975 | |||||||||||||||||||||||||||
| North Carolina | 4,700 | 472 | 5,172 | 4,897 | 355 | 5,252 | 4,750 | 632 | 5,382 | |||||||||||||||||||||||||||
| Coastal Georgia | 2,542 | - | 2,542 | 942 | - | 942 | 1,778 | - | 1,778 | |||||||||||||||||||||||||||
| Gainesville MSA | 622 | - | 622 | 728 | - | 728 | 279 | - | 279 | |||||||||||||||||||||||||||
| East Tennessee | 2,216 | 103 | 2,319 | 2,112 | 633 | 2,745 | 2,354 | 675 | 3,029 | |||||||||||||||||||||||||||
| South Carolina | 3,472 | 1,516 | 4,988 | 1,725 | 2,857 | 4,582 | 2,494 | 5,070 | 7,564 | |||||||||||||||||||||||||||
| Commercial Banking Solutions | 1,914 | - | 1,914 | 2,032 | - | 2,032 | 2,072 | - | 2,072 | |||||||||||||||||||||||||||
| Indirect auto | 1,274 | - | 1,274 | 1,317 | - | 1,317 | 1,275 | - | 1,275 | |||||||||||||||||||||||||||
| Total NPAs | $ | 23,095 | $ | 2,739 | $ | 25,834 | $ | 19,812 | $ | 5,060 | $ | 24,872 | $ | 21,539 | $ | 7,949 | $ | 29,488 | ||||||||||||||||||
| NONPERFORMING ASSETS ACTIVITY | ||||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 19,812 | $ | 5,060 | $ | 24,872 | $ | 21,539 | $ | 7,949 | $ | 29,488 | $ | 21,572 | $ | 9,187 | $ | 30,759 | ||||||||||||||||||
| Acquisitions | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Loans placed on non-accrual | 8,110 | - | 8,110 | 3,172 | - | 3,172 | 6,346 | - | 6,346 | |||||||||||||||||||||||||||
| Payments received | (2,955 | ) | - | (2,955 | ) | (3,046 | ) | - | (3,046 | ) | (3,832 | ) | - | (3,832 | ) | |||||||||||||||||||||
| Loan charge-offs | (1,564 | ) | - | (1,564 | ) | (1,292 | ) | - | (1,292 | ) | (1,293 | ) | - | (1,293 | ) | |||||||||||||||||||||
| Foreclosures | (308 | ) | 481 | 173 | (561 | ) | 561 | - | (1,254 | ) | 1,530 | 276 | ||||||||||||||||||||||||
| Capitalized costs | - | - | - | - | - | - | - | 26 | 26 | |||||||||||||||||||||||||||
| Property sales | - | (2,704 | ) | (2,704 | ) | - | (3,077 | ) | (3,077 | ) | - | (2,737 | ) | (2,737 | ) | |||||||||||||||||||||
| Write downs | - | (294 | ) | (294 | ) | - | (480 | ) | (480 | ) | - | (254 | ) | (254 | ) | |||||||||||||||||||||
| Net gains (losses) on sales | - | 196 | 196 | - | 107 | 107 | - | 197 | 197 | |||||||||||||||||||||||||||
| Ending Balance | $ | 23,095 | $ | 2,739 | $ | 25,834 | $ | 19,812 | $ | 5,060 | $ | 24,872 | $ | 21,539 | $ | 7,949 | $ | 29,488 | ||||||||||||||||||
| Second Quarter 2017 | First Quarter 2017 | Fourth Quarter 2016 | ||||||||||||||||||||||
| 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 | $ | 37 | .01 | % | $ | (212 | ) | (.05 | )% | $ | 1 | - | % | |||||||||||
| Income producing CRE | 184 | .06 | 870 | .28 | 527 | .16 | ||||||||||||||||||
| Commercial & industrial | 354 | .13 | (152 | ) | (.06 | ) | (201 | ) | (.08 | ) | ||||||||||||||
| Commercial construction | 341 | .22 | (370 | ) | (.23 | ) | 241 | .16 | ||||||||||||||||
| Total commercial | 916 | .08 | 136 | .01 | 568 | .05 | ||||||||||||||||||
| Residential mortgage | 26 | .01 | 530 | .25 | 322 | .15 | ||||||||||||||||||
| Home equity lines of credit | 253 | .15 | 422 | .26 | 151 | .09 | ||||||||||||||||||
| Residential construction | (53 | ) | (.11 | ) | (9 | ) | (.02 | ) | (16 | ) | (.03 | ) | ||||||||||||
| Consumer installment | 481 | .34 | 600 | .42 | 514 | .35 | ||||||||||||||||||
| Total | $ | 1,623 | .09 | $ | 1,679 | .10 | $ | 1,539 | .09 | |||||||||||||||
| NET CHARGE-OFFS BY MARKET | ||||||||||||||||||||||||
| North Georgia | $ | 681 | .26 | % | $ | 15 | .01 | % | $ | 575 | .21 | % | ||||||||||||
| Atlanta MSA | (10 | ) | - | (46 | ) | (.01 | ) | 12 | - | |||||||||||||||
| North Carolina | 131 | .10 | 601 | .45 | 714 | .52 | ||||||||||||||||||
| Coastal Georgia | 120 | .08 | (223 | ) | (.15 | ) | 118 | .08 | ||||||||||||||||
| Gainesville MSA | (54 | ) | (.09 | ) | 358 | .58 | (32 | ) | (.05 | ) | ||||||||||||||
| East Tennessee | 27 | .02 | 55 | .05 | (139 | ) | (.11 | ) | ||||||||||||||||
| South Carolina | 526 | .17 | 425 | .14 | (2 | ) | - | |||||||||||||||||
| Commercial Banking Solutions | (17 | ) | (.01 | ) | 195 | .09 | (21 | ) | (.01 | ) | ||||||||||||||
| Indirect auto | 219 | .19 | 299 | .27 | 314 | .27 | ||||||||||||||||||
| Total | $ | 1,623 | .09 | $ | 1,679 | .10 | $ | 1,539 | .09 | |||||||||||||||
(1) Annualized.
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Statement of Income (Unaudited) |
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Interest revenue: | ||||||||||||||||
| Loans, including fees | $ | 74,825 | $ | 63,472 | $ | 147,552 | $ | 127,448 | ||||||||
| Investment securities, including tax exempt of $357, $149, $636, and $315 | 17,778 | 16,833 | 35,490 | 32,621 | ||||||||||||
| Deposits in banks and short-term investments | 563 | 777 | 1,082 | 1,734 | ||||||||||||
| Total interest revenue | 93,166 | 81,082 | 184,124 | 161,803 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW | 635 | 444 | 1,232 | 929 | ||||||||||||
| Money market | 1,559 | 1,206 | 2,985 | 2,314 | ||||||||||||
| Savings | 28 | 30 | 55 | 59 | ||||||||||||
| Time | 1,379 | 743 | 2,387 | 1,385 | ||||||||||||
| Total deposit interest expense | 3,601 | 2,423 | 6,659 | 4,687 | ||||||||||||
| Short-term borrowings | 101 | 93 | 141 | 180 | ||||||||||||
| Federal Home Loan Bank advances | 1,464 | 983 | 2,894 | 1,716 | ||||||||||||
| Long-term debt | 2,852 | 2,665 | 5,728 | 5,350 | ||||||||||||
| Total interest expense | 8,018 | 6,164 | 15,422 | 11,933 | ||||||||||||
| Net interest revenue | 85,148 | 74,918 | 168,702 | 149,870 | ||||||||||||
| (Release of) provision for credit losses | 800 | (300 | ) | 1,600 | (500 | ) | ||||||||||
| Net interest revenue after provision for credit losses | 84,348 | 75,218 | 167,102 | 150,370 | ||||||||||||
| Fee revenue: | ||||||||||||||||
| Service charges and fees | 10,701 | 10,515 | 21,305 | 20,641 | ||||||||||||
| Mortgage loan and other related fees | 4,811 | 4,448 | 9,235 | 7,737 | ||||||||||||
| Brokerage fees | 1,146 | 1,117 | 2,556 | 2,170 | ||||||||||||
| Gains from sales of government guaranteed loans | 2,626 | 2,801 | 4,585 | 4,038 | ||||||||||||
| Securities gains, net | 4 | 282 | 2 | 661 | ||||||||||||
| Other | 4,397 | 4,334 | 8,076 | 6,856 | ||||||||||||
| Total fee revenue | 23,685 | 23,497 | 45,759 | 42,103 | ||||||||||||
| Total revenue | 108,033 | �� | 98,715 | 212,861 | 192,473 | |||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and employee benefits | 37,338 | 33,572 | 74,029 | 66,634 | ||||||||||||
| Communications and equipment | 4,978 | 4,393 | 9,896 | 8,683 | ||||||||||||
| Occupancy | 4,908 | 4,538 | 9,857 | 9,261 | ||||||||||||
| Advertising and public relations | 1,260 | 1,323 | 2,321 | 2,187 | ||||||||||||
| Postage, printing and supplies | 1,346 | 1,298 | 2,716 | 2,578 | ||||||||||||
| Professional fees | 2,371 | 3,189 | 5,415 | 5,889 | ||||||||||||
| FDIC assessments and other regulatory charges | 1,348 | 1,517 | 2,631 | 3,041 | ||||||||||||
| Amortization of intangibles | 900 | 987 | 1,873 | 1,997 | ||||||||||||
| Merger-related and other charges | 1,830 | 1,176 | 3,884 | 3,829 | ||||||||||||
| Other | 6,950 | 6,067 | 13,433 | 11,846 | ||||||||||||
| Total operating expenses | 63,229 | 58,060 | 126,055 | 115,945 | ||||||||||||
| Net income before income taxes | 44,804 | 40,655 | 86,806 | 76,528 | ||||||||||||
| Income tax expense | 16,537 | 15,389 | 35,015 | 28,967 | ||||||||||||
| Net income | 28,267 | 25,266 | 51,791 | 47,561 | ||||||||||||
| Preferred stock dividends and discount accretion | - | - | - | 21 | ||||||||||||
| Net income available to common shareholders | $ | 28,267 | $ | 25,266 | $ | 51,791 | $ | 47,540 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | .39 | $ | .35 | $ | .72 | $ | .66 | ||||||||
| Diluted | .39 | .35 | .72 | .66 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 71,810 | 72,202 | 71,798 | 72,187 | ||||||||||||
| Diluted | 71,820 | 72,207 | 71,809 | 72,191 | ||||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Balance Sheet(Unaudited) |
| June 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2017 | 2016 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 103,616 | $ | 99,489 | ||||
| Interest-bearing deposits in banks | 129,570 | 117,859 | ||||||
| Cash and cash equivalents | 233,186 | 217,348 | ||||||
| Securities available for sale | 2,474,592 | 2,432,438 | ||||||
| Securities held to maturity (fair value $316,583 and $333,170) | 312,002 | 329,843 | ||||||
| Mortgage loans held for sale (includes $24,109 and $27,891 at fair value) | 25,711 | 29,878 | ||||||
| Loans, net of unearned income | 7,040,932 | 6,920,636 | ||||||
| Less allowance for loan losses | (59,500 | ) | (61,422 | ) | ||||
| Loans, net | 6,981,432 | 6,859,214 | ||||||
| Premises and equipment, net | 189,614 | 189,938 | ||||||
| Bank owned life insurance | 155,026 | 143,543 | ||||||
| Accrued interest receivable | 26,938 | 28,018 | ||||||
| Net deferred tax asset | 119,594 | 154,336 | ||||||
| Derivative financial instruments | 21,640 | 23,688 | ||||||
| Goodwill and other intangible assets | 154,350 | 156,222 | ||||||
| Other assets | 143,325 | 144,189 | ||||||
| Total assets | $ | 10,837,410 | $ | 10,708,655 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Demand | $ | 2,818,668 | $ | 2,637,004 | ||||
| NOW | 1,874,850 | 1,989,763 | ||||||
| Money market | 1,808,736 | 1,846,440 | ||||||
| Savings | 581,706 | 549,713 | ||||||
| Time | 1,273,112 | 1,287,142 | ||||||
| Brokered | 378,663 | 327,496 | ||||||
| Total deposits | 8,735,735 | 8,637,558 | ||||||
| Short-term borrowings | - | 5,000 | ||||||
| Federal Home Loan Bank advances | 669,065 | 709,209 | ||||||
| Long-term debt | 175,363 | 175,078 | ||||||
| Derivative financial instruments | 24,260 | 27,648 | ||||||
| Accrued expenses and other liabilities | 100,346 | 78,427 | ||||||
| Total liabilities | 9,704,769 | 9,632,920 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, $1 par value; 150,000,000 shares authorized; 70,980,916 and 70,899,114 shares issued and outstanding | 70,981 | 70,899 | ||||||
| Common stock issuable; 550,449 and 519,874 shares | 8,062 | 7,327 | ||||||
| Capital surplus | 1,277,822 | 1,275,849 | ||||||
| Accumulated deficit | (212,607 | ) | (251,857 | ) | ||||
| Accumulated other comprehensive loss | (11,617 | ) | (26,483 | ) | ||||
| Total shareholders' equity | 1,132,641 | 1,075,735 | ||||||
| Total liabilities and shareholders' equity | $ | 10,837,410 | $ | 10,708,655 | ||||
| UNITED COMMUNITY BANKS, INC. |
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Three Months Ended June 30, |
| 2017 | 2016 | |||||||||||||||||||||||
| 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) | $ | 6,979,980 | $ | 74,811 | 4.30 | % | $ | 6,150,654 | $ | 63,485 | 4.15 | % | ||||||||||||
| Taxable securities(3) | 2,719,390 | 17,421 | 2.56 | 2,720,061 | 16,684 | 2.45 | ||||||||||||||||||
| Tax-exempt securities (FTE)(1)(3) | 55,992 | 584 | 4.17 | 27,434 | 244 | 3.56 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 143,143 | 743 | 2.08 | 138,622 | 912 | 2.63 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 9,898,505 | 93,559 | 3.79 | 9,036,771 | 81,325 | 3.62 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (61,163 | ) | (66,104 | ) | ||||||||||||||||||||
| Cash and due from banks | 104,812 | 94,920 | ||||||||||||||||||||||
| Premises and equipment | 192,906 | 182,609 | ||||||||||||||||||||||
| Other assets(3) | 569,435 | 560,357 | ||||||||||||||||||||||
| Total assets | $ | 10,704,495 | $ | 9,808,553 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 1,901,890 | 635 | .13 | $ | 1,755,726 | 444 | .10 | ||||||||||||||||
| Money market | 2,064,143 | 1,559 | .30 | 1,866,913 | 1,206 | .26 | ||||||||||||||||||
| Savings | 575,960 | 28 | .02 | 497,973 | 30 | .02 | ||||||||||||||||||
| Time | 1,274,009 | 1,136 | .36 | 1,205,066 | 675 | .23 | ||||||||||||||||||
| Brokered time deposits | 111,983 | 243 | .87 | 187,481 | 68 | .15 | ||||||||||||||||||
| Total interest-bearing deposits | 5,927,985 | 3,601 | .24 | 5,513,159 | 2,423 | .18 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 37,317 | 101 | 1.09 | 11,000 | 93 | 3.40 | ||||||||||||||||||
| Federal Home Loan Bank advances | 594,815 | 1,464 | .99 | 589,246 | 983 | .67 | ||||||||||||||||||
| Long-term debt | 175,281 | 2,852 | 6.53 | 164,020 | 2,665 | 6.53 | ||||||||||||||||||
| Total borrowed funds | 807,413 | 4,417 | 2.19 | 764,266 | 3,741 | 1.97 | ||||||||||||||||||
| Total interest-bearing liabilities | 6,735,398 | 8,018 | .48 | 6,277,425 | 6,164 | .39 | ||||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||
| Non-interest-bearing deposits | 2,731,217 | 2,383,894 | ||||||||||||||||||||||
| Other liabilities | 114,873 | 96,067 | ||||||||||||||||||||||
| Total liabilities | 9,581,488 | 8,757,386 | ||||||||||||||||||||||
| Shareholders' equity | 1,123,007 | 1,051,167 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,704,495 | $ | 9,808,553 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 85,541 | $ | 75,161 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 3.31 | % | 3.23 | % | ||||||||||||||||||||
| Net interest margin (FTE)(4) | 3.47 | % | 3.35 | % | ||||||||||||||||||||
| (1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rateused 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 gains of $6.58 million in 2017 and $12.3 million in 2016 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. |
| UNITED COMMUNITY BANKS, INC. |
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Six Months Ended June 30, |
| 2017 | 2016 | |||||||||||||||||||||||
| 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) | $ | 6,942,130 | $ | 147,552 | 4.29 | % | $ | 6,077,111 | $ | 127,529 | 4.22 | % | ||||||||||||
| Taxable securities(3) | 2,749,339 | 34,854 | 2.54 | 2,704,309 | 32,306 | 2.39 | ||||||||||||||||||
| Tax-exempt securities (FTE)(1)(3) | 49,125 | 1,041 | 4.24 | 28,590 | 516 | 3.61 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 144,577 | 1,407 | 1.95 | 146,192 | 1,965 | 2.69 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 9,885,171 | 184,854 | 3.76 | 8,956,202 | 162,316 | 3.64 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (61,414 | ) | (67,289 | ) | ||||||||||||||||||||
| Cash and due from banks | 102,048 | 90,278 | ||||||||||||||||||||||
| Premises and equipment | 191,509 | 181,350 | ||||||||||||||||||||||
| Other assets(3) | 573,281 | 560,813 | ||||||||||||||||||||||
| Total assets | $ | 10,690,595 | $ | 9,721,354 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 1,930,624 | 1,232 | .13 | $ | 1,821,100 | 929 | .10 | ||||||||||||||||
| Money market | 2,064,792 | 2,985 | .29 | 1,853,749 | 2,314 | .25 | ||||||||||||||||||
| Savings | 568,339 | 55 | .02 | 489,106 | 59 | .02 | ||||||||||||||||||
| Time | 1,269,005 | 1,951 | .31 | 1,232,378 | 1,492 | .24 | ||||||||||||||||||
| Brokered time deposits | 105,199 | 436 | .84 | 210,347 | (107 | ) | (.10 | ) | ||||||||||||||||
| Total interest-bearing deposits | 5,937,959 | 6,659 | .23 | 5,606,680 | 4,687 | .17 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 28,225 | 141 | 1.01 | 22,953 | 180 | 1.58 | ||||||||||||||||||
| Federal Home Loan Bank advances | 637,728 | 2,894 | .92 | 467,708 | 1,716 | .74 | ||||||||||||||||||
| Long-term debt | 175,212 | 5,728 | 6.59 | 164,720 | 5,350 | 6.53 | ||||||||||||||||||
| Total borrowed funds | 841,165 | 8,763 | 2.10 | 655,381 | 7,246 | 2.22 | ||||||||||||||||||
| Total interest-bearing liabilities | 6,779,124 | 15,422 | .46 | 6,262,061 | 11,933 | .38 | ||||||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||
| Non-interest-bearing deposits | 2,687,665 | 2,315,468 | ||||||||||||||||||||||
| Other liabilities | 115,808 | 101,694 | ||||||||||||||||||||||
| Total liabilities | 9,582,597 | 8,679,223 | ||||||||||||||||||||||
| Shareholders' equity | 1,107,998 | 1,042,131 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,690,595 | $ | 9,721,354 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 169,432 | $ | 150,383 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 3.30 | % | 3.26 | % | ||||||||||||||||||||
| Net interest margin (FTE)(4) | 3.46 | % | 3.38 | % | ||||||||||||||||||||
| (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 gains of $638 thousand in 2017 and $7.28 million in 2016 areincluded in other assets for purposes of this presentation. |
| (4) | Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. |