United Community Banks, Inc. Announces Fourth Quarter Results

Return on Assets of 1.43% and Return on Common Equity of 12.08%

GREENVILLE, S.C., Jan. 22, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (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.”

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.


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.




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.


UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information

2018

2017

For the Twelve Months Ended
December 31,

Fourth

Third

Second

First

Fourth

(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.



UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End

2018

2017

Linked
Quarter
Change

Year over
Year
Change

Fourth

Third

Second

First

Fourth

(in millions)

Quarter

Quarter

Quarter

Quarter

Quarter

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



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