GREENVILLE, S.C., July 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported second quarter financial results, with record year-over-year loan and deposit growth. United delivered net income of $25.1 million and pre-tax pre-provision income of $65.6 million and built its allowance for credit losses with a $33.5 million provision for credit losses. Due largely to the continued reserve build anticipating potential future loan losses driven by COVID-19 effects on the economy, diluted earnings per share of $0.32 represented a decrease of $0.23 or 42%, from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were also $0.32, also down 46% from last year. United’s return on assets (ROA) was 0.71% and its return on common equity was 6.2% for the quarter. On an operating basis, United’s ROA was 0.72% and its return on tangible common equity was 8.1%.
Chairman and CEO Lynn Harton stated, “As the nation continues to grapple with the uncertainties of the future economic environment, I am pleased with the financial strength of the company and the performance of our employees, who continue to deliver for our customers. In this new world of physical distancing, the investments we have made in our digital delivery channels are being put to the test and exceeding our expectations. Customer traffic patterns suggest that our customers have significantly increased their use of our digital platform to access our products and services, as well as to open and manage their accounts. Along with our enhanced mobile app, this platform has enabled us to maintain business volume, while keeping our employees and customers physically-distanced and safe while banking. We supported our small business clients by offering loan deferrals, as needed. Additionally, our SBA team, along with other United bankers across our markets, processed nearly 11,000 applications for the SBA’s Paycheck Protection Program (PPP) loans totaling $1.1 billion—providing funding for small businesses throughout our footprint. In addition to addressing the needs of our existing customers, we added approximately 4,000 new loan and deposit customers since the Program began, which has given us an even greater opportunity to serve our markets.”
This quarter saw record growth with total loans increasing by $1.2 billion—mainly from PPP loans—however, non-PPP loans also grew at a 5% annualized rate. Likewise, core transaction deposits were up a record $1.7 billion over first quarter with growth in noninterest bearing deposits of $1.1 billion being the primary driver. United’s cost of deposits decreased 18 bps to 0.38% as a result. Net interest margin decreased 65 bps from the first quarter. Of this decrease, 18 bps was due to lower purchased loan accretion, approximately 6 bps was due to lower-yielding PPP loans, and approximately 9 bps resulted from carrying an increased amount in low-yielding overnight investments due to the record amount of liquidity generated by bank deposit growth in the quarter.
Harton continued, “During the second quarter, we also completed a number of important strategic initiatives that position us well for the future. In June, we raised $200 million—$100 million in preferred stock with a 6.875% annual dividend rate and $100 million in senior notes with a 5.00% annual coupon. Our long-term goal is to continue to remain a top performer in our peer group, with top quartile results in key performance metrics including capital levels. These capital raises were done to provide us with substantial flexibility to be able to both focus on our customers’ current needs, and at the same time, be prepared to emerge from the health crisis in a very strong position. We believe that there will be meaningful strategic growth opportunities at that point.”
Immediately following quarter end, the bank announced the July 1st closing of the previously announced merger with Three Shores Bancorporation, Inc. and its bank subsidiary Seaside National Bank & Trust, which will now be branded Seaside Bank and Trust. Harton noted, “We are pleased to welcome Seaside’s talented team of bankers and believe that our combined banks are better together. Gideon Haymaker is now United’s president for the State of Florida and additionally will lead our expansion of Seaside’s wealth management offering across United’s footprint.”
Mr. Harton concluded, “Giving back to our communities is at the core of who we are as a community bank. In keeping with that long-standing tradition, I am also pleased to announce that we recently formed the United Community Bank Foundation, a tax-exempt private foundation which will expand our charitable endeavors throughout our footprint. In the second quarter, we made a $1 million initial contribution to the foundation, which will allow us to further support our communities that have been critical to our success over the years.”
Second Quarter 2020 Financial Highlights:
- EPS decreased by 42% compared to last year on a GAAP basis and 46% on an operating basis
- Return on assets of 0.71%, or 0.72% excluding merger-related and other charges
- Pre-tax, pre-provision return on assets of 1.86%, or 1.87% excluding merger-related and other charges
- Return on common equity of 6.2%
- Return on tangible common equity of 8.1%, excluding merger-related and other charges
- United adopted the Current Expected Credit Losses (CECL) model for determining the allowance for credit losses last quarter; the continued uncertain economic outlook necessitated a provision for credit losses of $33.5 million
- Record loan production of $2.0 billion, with $1.1 billion in PPP loans and $866 million in traditional (non-PPP) loans
- Loan growth of $1.2 billion, including traditional loan growth at an annualized rate of 5% for the quarter
- Core transaction deposits were up $1.7 billion or 22%, mainly driven by noninterest bearing demand deposit growth of $1.1 billion; a significant portion of United’s core transaction deposit growth was attributable to PPP-related deposits
- Net interest margin of 3.42%, which was down 65 bps from first quarter, reflecting the effect of lower interest rates, lower purchased loan accretion, the impact of the lower yielding PPP loans and a much higher level of low-yielding, highly-liquid assets
- Mortgage rate locks of $802 million, which is slightly higher than last quarter and again exceeds our previous quarterly record by 58%; this compares to $390 million a year ago
- Noninterest income was up $14.4 million on a linked quarter basis, primarily due to a $15.3 million increase in mortgage income as a result of record mortgage rate locks and production, as well as an improved market environment
- Efficiency ratio of 55.86%, or 55.59% excluding merger-related and other charges
- Net charge-offs of $6.1 million, or 25 basis points as a percent of average loans, down 12 basis points from last quarter and mainly attributable to two credits that have been substandard for more than a year
- Nonperforming assets of 0.32% of total assets, which is up 4 basis points compared to March 31, 2020
- Total deferrals of $1.8 billion or 17% of the total loan portfolio at June 30
- Funded the United Community Bank Foundation with an initial $1 million contribution for charities and causes throughout the footprint
- Completed a public offering of $100 million aggregate of 6.875% Non-Cumulative Perpetual Preferred Stock and $100 million aggregate principal amount of 5.000% Fixed-to-Floating Senior Notes due 2030
- Effective July 1, 2020, United completed its merger with Three Shores Bancorporation, Inc. and its bank subsidiary, Seaside National Bank & Trust
Conference Call
United will hold a conference call, Wednesday, July 22, 2020, 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 4995436. 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. |
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| Selected Financial Information |
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2020 |
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2019 |
|
Second
Quarter
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|
For the Six Months Ended June 30, |
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| (in thousands, except per share data) |
|
Second
Quarter |
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First
Quarter |
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Fourth
Quarter |
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Third
Quarter |
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Second
Quarter |
|
2020 -
2019
Change |
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2020 |
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2019 |
|
YTD 2020
- 2019
Change |
| INCOME SUMMARY |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Interest revenue |
|
$ |
123,605 |
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|
|
$ |
136,547 |
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|
|
$ |
136,419 |
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|
|
$ |
140,615 |
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|
|
$ |
139,156 |
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|
|
|
|
$ |
260,152 |
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|
|
$ |
275,672 |
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|
|
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| Interest expense |
|
14,301 |
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|
|
17,941 |
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|
|
19,781 |
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|
|
21,277 |
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|
21,372 |
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|
|
|
|
32,242 |
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|
|
42,254 |
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|
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| Net interest revenue |
|
109,304 |
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|
|
118,606 |
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|
|
116,638 |
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|
|
119,338 |
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|
117,784 |
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|
|
(7 |
) |
% |
|
227,910 |
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|
233,418 |
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(2 |
) |
% |
| Provision for credit losses |
|
33,543 |
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|
|
22,191 |
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|
|
3,500 |
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|
|
3,100 |
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|
|
3,250 |
|
|
|
|
|
55,734 |
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|
6,550 |
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|
|
751 |
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| Noninterest income |
|
40,238 |
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|
|
25,814 |
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|
|
30,183 |
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|
|
29,031 |
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|
|
24,531 |
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|
|
64 |
|
|
|
66,052 |
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|
|
45,499 |
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|
45 |
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| Total revenue |
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115,999 |
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|
|
122,229 |
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|
|
143,321 |
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|
|
145,269 |
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|
|
139,065 |
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(17 |
) |
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|
238,228 |
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|
272,367 |
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(13 |
) |
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| Expenses |
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83,980 |
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|
81,538 |
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|
81,424 |
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|
82,924 |
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|
81,813 |
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3 |
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165,518 |
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157,897 |
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5 |
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| Income before income tax expense |
|
32,019 |
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|
40,691 |
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|
61,897 |
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62,345 |
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|
57,252 |
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(44 |
) |
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|
72,710 |
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|
114,470 |
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(36 |
) |
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| Income tax expense |
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6,923 |
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|
|
8,807 |
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|
|
12,885 |
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|
|
13,983 |
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|
|
13,167 |
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|
|
(47 |
) |
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|
15,730 |
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|
|
26,123 |
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|
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(40 |
) |
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| Net income |
|
25,096 |
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|
|
31,884 |
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|
|
49,012 |
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|
|
48,362 |
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|
|
44,085 |
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|
|
(43 |
) |
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|
56,980 |
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|
88,347 |
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(36 |
) |
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| Merger-related and other charges |
|
397 |
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|
808 |
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(74 |
) |
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|
2,605 |
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|
4,087 |
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|
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|
1,205 |
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|
|
4,826 |
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| Income tax benefit of merger-related and other charges |
|
(87 |
) |
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|
(182 |
) |
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17 |
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|
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(600 |
) |
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|
(940 |
) |
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(269 |
) |
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(1,112 |
) |
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| Net income - operating (1) |
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$ |
25,406 |
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$ |
32,510 |
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$ |
48,955 |
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$ |
50,367 |
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|
$ |
47,232 |
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|
(46 |
) |
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|
$ |
57,916 |
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|
$ |
92,061 |
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|
(37 |
) |
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| Pre-tax pre-provision income (5) |
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$ |
65,562 |
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$ |
62,882 |
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$ |
65,397 |
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|
$ |
65,445 |
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|
|
$ |
60,502 |
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|
8 |
|
|
|
$ |
128,444 |
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|
|
$ |
121,020 |
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|
6 |
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| PERFORMANCE MEASURES |
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| Per common share: |
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| Diluted net income - GAAP |
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$ |
0.32 |
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$ |
0.40 |
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$ |
0.61 |
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|
$ |
0.60 |
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$ |
0.55 |
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(42 |
) |
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|
$ |
0.71 |
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|
$ |
1.10 |
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|
(35 |
) |
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| Diluted net income - operating (1) |
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0.32 |
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|
0.41 |
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|
0.61 |
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|
0.63 |
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|
0.59 |
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(46 |
) |
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|
0.73 |
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|
1.15 |
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(37 |
) |
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| Cash dividends declared |
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0.18 |
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|
0.18 |
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|
0.18 |
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|
0.17 |
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|
0.17 |
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6 |
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0.36 |
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0.33 |
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|
9 |
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| Book value |
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21.22 |
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|
20.80 |
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|
20.53 |
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|
20.16 |
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|
19.65 |
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|
8 |
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|
21.22 |
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|
19.65 |
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|
8 |
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| Tangible book value (3) |
|
16.95 |
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|
|
16.52 |
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|
|
16.28 |
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|
15.90 |
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|
|
15.38 |
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|
10 |
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|
16.95 |
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|
15.38 |
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|
10 |
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| Key performance ratios: |
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| Return on common equity - GAAP (2)(4) |
|
6.17 |
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% |
|
7.85 |
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% |
|
12.07 |
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% |
|
12.16 |
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% |
|
11.45 |
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% |
|
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|
7.01 |
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% |
|
11.65 |
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% |
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| Return on common equity - operating (1)(2)(4) |
|
6.25 |
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|
8.01 |
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|
12.06 |
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|
12.67 |
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12.27 |
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7.13 |
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12.14 |
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| Return on tangible common equity - operating (1)(2)(3)(4) |
|
8.09 |
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10.57 |
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|
15.49 |
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|
16.38 |
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|
15.88 |
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|
9.20 |
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|
15.67 |
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| Return on assets - GAAP (4) |
|
0.71 |
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|
|
0.99 |
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|
|
1.50 |
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|
|
1.51 |
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|
1.40 |
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|
|
|
|
0.85 |
|
|
|
1.42 |
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| Return on assets - operating (1)(4) |
|
0.72 |
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|
|
1.01 |
|
|
|
1.50 |
|
|
|
1.58 |
|
|
|
1.50 |
|
|
|
|
|
0.86 |
|
|
|
1.48 |
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| Return on assets - pre-tax pre-provision (4)(5) |
|
1.86 |
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|
|
1.95 |
|
|
|
2.00 |
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|
|
2.05 |
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|
|
1.92 |
|
|
|
|
|
1.91 |
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|
|
1.94 |
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| Return on assets - pre-tax pre-provision, excluding merger- related and other charges (1)(4)(5) |
|
1.87 |
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|
|
1.98 |
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|
|
2.00 |
|
|
|
2.13 |
|
|
|
2.05 |
|
|
|
|
|
1.92 |
|
|
|
2.02 |
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| Net interest margin (fully taxable equivalent) (4) |
|
3.42 |
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|
|
4.07 |
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|
|
3.93 |
|
|
|
4.12 |
|
|
|
4.12 |
|
|
|
|
|
3.73 |
|
|
|
4.11 |
|
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| Efficiency ratio - GAAP |
|
55.86 |
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|
|
56.15 |
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|
|
54.87 |
|
|
|
55.64 |
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|
|
57.28 |
|
|
|
|
|
56.00 |
|
|
|
56.32 |
|
|
|
|
| Efficiency ratio - operating (1) |
|
55.59 |
|
|
|
55.59 |
|
|
|
54.92 |
|
|
|
53.90 |
|
|
|
54.42 |
|
|
|
|
|
55.59 |
|
|
|
54.60 |
|
|
|
|
| Equity to total assets |
|
11.81 |
|
|
|
12.54 |
|
|
|
12.66 |
|
|
|
12.53 |
|
|
|
12.25 |
|
|
|
|
|
11.81 |
|
|
|
12.25 |
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|
|
|
| Tangible common equity to tangible assets (3) |
|
9.12 |
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|
|
10.22 |
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|
|
10.32 |
|
|
|
10.16 |
|
|
|
9.86 |
|
|
|
|
|
9.12 |
|
|
|
9.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| ASSET QUALITY |
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|
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|
|
|
|
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|
|
|
|
|
|
|
|
| Nonperforming loans |
|
$ |
48,021 |
|
|
|
$ |
36,208 |
|
|
|
$ |
35,341 |
|
|
|
$ |
30,832 |
|
|
|
$ |
26,597 |
|
|
|
81 |
|
|
|
$ |
48,021 |
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|
|
$ |
26,597 |
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|
|
81 |
|
|
| Foreclosed properties |
|
477 |
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|
|
475 |
|
|
|
476 |
|
|
|
102 |
|
|
|
75 |
|
|
|
536 |
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|
|
477 |
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|
|
75 |
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|
|
536 |
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| Total nonperforming assets ("NPAs") |
|
48,498 |
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|
|
36,683 |
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|
|
35,817 |
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|
|
30,934 |
|
|
|
26,672 |
|
|
|
82 |
|
|
|
48,498 |
|
|
|
26,672 |
|
|
|
82 |
|
|
| Allowance for credit losses - loans |
|
103,669 |
|
|
|
81,905 |
|
|
|
62,089 |
|
|
|
62,514 |
|
|
|
62,204 |
|
|
|
67 |
|
|
|
103,669 |
|
|
|
62,204 |
|
|
|
67 |
|
|
| Net charge-offs |
|
6,149 |
|
|
|
8,114 |
|
|
|
3,925 |
|
|
|
2,723 |
|
|
|
2,438 |
|
|
|
152 |
|
|
|
14,263 |
|
|
|
5,568 |
|
|
|
156 |
|
|
| Allowance for credit losses - loans to loans |
|
1.02 |
|
% |
|
0.92 |
|
% |
|
0.70 |
|
% |
|
0.70 |
|
% |
|
0.70 |
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% |
|
|
|
1.02 |
|
|
|
0.70 |
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% |
|
|
| Net charge-offs to average loans (4) |
|
0.25 |
|
|
|
0.37 |
|
|
|
0.18 |
|
|
|
0.12 |
|
|
|
0.11 |
|
|
|
|
|
0.31 |
|
|
|
0.13 |
|
|
|
|
| NPAs to loans and foreclosed properties |
|
0.48 |
|
|
|
0.41 |
|
|
|
0.41 |
|
|
|
0.35 |
|
|
|
0.30 |
|
|
|
|
|
0.48 |
|
|
|
0.30 |
|
|
|
|
| NPAs to total assets |
|
0.32 |
|
|
|
0.28 |
|
|
|
0.28 |
|
|
|
0.24 |
|
|
|
0.21 |
|
|
|
|
|
0.32 |
|
|
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCES ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$ |
9,773 |
|
|
|
$ |
8,829 |
|
|
|
$ |
8,890 |
|
|
|
$ |
8,836 |
|
|
|
$ |
8,670 |
|
|
|
13 |
|
|
|
$ |
9,301 |
|
|
|
$ |
8,551 |
|
|
|
9 |
|
|
| Investment securities |
|
2,408 |
|
|
|
2,520 |
|
|
|
2,486 |
|
|
|
2,550 |
|
|
|
2,674 |
|
|
|
(10 |
) |
|
|
2,464 |
|
|
|
2,778 |
|
|
|
(11 |
) |
|
| Earning assets |
|
12,958 |
|
|
|
11,798 |
|
|
|
11,832 |
|
|
|
11,568 |
|
|
|
11,534 |
|
|
|
12 |
|
|
|
12,378 |
|
|
|
11,516 |
|
|
|
7 |
|
|
| Total assets |
|
14,173 |
|
|
|
12,944 |
|
|
|
12,946 |
|
|
|
12,681 |
|
|
|
12,608 |
|
|
|
12 |
|
|
|
13,558 |
|
|
|
12,559 |
|
|
|
8 |
|
|
| Deposits |
|
12,071 |
|
|
|
10,915 |
|
|
|
10,924 |
|
|
|
10,531 |
|
|
|
10,493 |
|
|
|
15 |
|
|
|
11,493 |
|
|
|
10,427 |
|
|
|
10 |
|
|
| Shareholders’ equity |
|
1,686 |
|
|
|
1,653 |
|
|
|
1,623 |
|
|
|
1,588 |
|
|
|
1,531 |
|
|
|
10 |
|
|
|
1,670 |
|
|
|
1,505 |
|
|
|
11 |
|
|
| Common shares - basic (thousands) |
|
78,920 |
|
|
|
79,340 |
|
|
|
79,659 |
|
|
|
79,663 |
|
|
|
79,673 |
|
|
|
(1 |
) |
|
|
79,130 |
|
|
|
79,739 |
|
|
|
(1 |
) |
|
| Common shares - diluted (thousands) |
|
78,924 |
|
|
|
79,446 |
|
|
|
79,669 |
|
|
|
79,667 |
|
|
|
79,678 |
|
|
|
(1 |
) |
|
|
79,186 |
|
|
|
79,745 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AT PERIOD END ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$ |
10,133 |
|
|
|
$ |
8,935 |
|
|
|
$ |
8,813 |
|
|
|
$ |
8,903 |
|
|
|
$ |
8,838 |
|
|
|
15 |
|
|
|
$ |
10,133 |
|
|
|
$ |
8,838 |
|
|
|
15 |
|
|
| Investment securities |
|
2,432 |
|
|
|
2,540 |
|
|
|
2,559 |
|
|
|
2,515 |
|
|
|
2,620 |
|
|
|
(7 |
) |
|
|
2,432 |
|
|
|
2,620 |
|
|
|
(7 |
) |
|
| Total assets |
|
15,005 |
|
|
|
13,086 |
|
|
|
12,916 |
|
|
|
12,809 |
|
|
|
12,779 |
|
|
|
17 |
|
|
|
15,005 |
|
|
|
12,779 |
|
|
|
17 |
|
|
| Deposits |
|
12,702 |
|
|
|
11,035 |
|
|
|
10,897 |
|
|
|
10,757 |
|
|
|
10,591 |
|
|
|
20 |
|
|
|
12,702 |
|
|
|
10,591 |
|
|
|
20 |
|
|
| Shareholders’ equity |
|
1,772 |
|
|
|
1,641 |
|
|
|
1,636 |
|
|
|
1,605 |
|
|
|
1,566 |
|
|
|
13 |
|
|
|
1,772 |
|
|
|
1,566 |
|
|
|
13 |
|
|
| Common shares outstanding (thousands) |
|
78,335 |
|
|
|
78,284 |
|
|
|
79,014 |
|
|
|
78,974 |
|
|
|
79,075 |
|
|
|
(1 |
) |
|
|
78,335 |
|
|
|
79,075 |
|
|
|
(1 |
) |
|
(1) Excludes merger-related and other charges which includes termination of pension plan in the third quarter of 2019, executive retirement charges in the second quarter of 2019 and amortization of certain executive change of control benefits. (2) Net income divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.
| UNITED COMMUNITY BANKS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Performance Measures Reconciliation |
| Selected Financial Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
For the Six Months Ended June 30, |
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
|
|
|
| (in thousands, except per share data) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expense reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (GAAP) |
|
$ |
83,980 |
|
|
|
$ |
81,538 |
|
|
|
$ |
81,424 |
|
|
|
$ |
82,924 |
|
|
|
$ |
81,813 |
|
|
|
$ |
165,518 |
|
|
|
$ |
157,897 |
|
|
| Merger-related and other charges |
|
(397 |
) |
|
|
(808 |
) |
|
|
74 |
|
|
|
(2,605 |
) |
|
|
(4,087 |
) |
|
|
(1,205 |
) |
|
|
(4,826 |
) |
|
| Expenses - operating |
|
$ |
83,583 |
|
|
|
$ |
80,730 |
|
|
|
$ |
81,498 |
|
|
|
$ |
80,319 |
|
|
|
$ |
77,726 |
|
|
|
$ |
164,313 |
|
|
|
$ |
153,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income to operating income reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
$ |
25,096 |
|
|
|
$ |
31,884 |
|
|
|
$ |
49,012 |
|
|
|
$ |
48,362 |
|
|
|
$ |
44,085 |
|
|
|
$ |
56,980 |
|
|
|
$ |
88,347 |
|
|
| Merger-related and other charges |
|
397 |
|
|
|
808 |
|
|
|
(74 |
) |
|
|
2,605 |
|
|
|
4,087 |
|
|
|
1,205 |
|
|
|
4,826 |
|
|
| Income tax benefit of merger-related and other charges |
|
(87 |
) |
|
|
(182 |
) |
|
|
17 |
|
|
|
(600 |
) |
|
|
(940 |
) |
|
|
(269 |
) |
|
|
(1,112 |
) |
|
| Net income - operating |
|
$ |
25,406 |
|
|
|
$ |
32,510 |
|
|
|
$ |
48,955 |
|
|
|
$ |
50,367 |
|
|
|
$ |
47,232 |
|
|
|
$ |
57,916 |
|
|
|
$ |
92,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income to pre-tax pre-provision income reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
$ |
25,096 |
|
|
|
$ |
31,884 |
|
|
|
$ |
49,012 |
|
|
|
$ |
48,362 |
|
|
|
$ |
44,085 |
|
|
|
$ |
56,980 |
|
|
|
$ |
88,347 |
|
|
| Income tax expense |
|
6,923 |
|
|
|
8,807 |
|
|
|
12,885 |
|
|
|
13,983 |
|
|
|
13,167 |
|
|
|
15,730 |
|
|
|
26,123 |
|
|
| Provision for credit losses |
|
33,543 |
|
|
|
22,191 |
|
|
|
3,500 |
|
|
|
3,100 |
|
|
|
3,250 |
|
|
|
55,734 |
|
|
|
6,550 |
|
|
| Pre-tax pre-provision income |
|
$ |
65,562 |
|
|
|
$ |
62,882 |
|
|
|
$ |
65,397 |
|
|
|
$ |
65,445 |
|
|
|
$ |
60,502 |
|
|
|
$ |
128,444 |
|
|
|
$ |
121,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted income per common share reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted income per common share (GAAP) |
|
$ |
0.32 |
|
|
|
$ |
0.40 |
|
|
|
$ |
0.61 |
|
|
|
$ |
0.60 |
|
|
|
$ |
0.55 |
|
|
|
$ |
0.71 |
|
|
|
$ |
1.10 |
|
|
| Merger-related and other charges, net of tax |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
| Diluted income per common share - operating |
|
$ |
0.32 |
|
|
|
$ |
0.41 |
|
|
|
$ |
0.61 |
|
|
|
$ |
0.63 |
|
|
|
$ |
0.59 |
|
|
|
$ |
0.73 |
|
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share (GAAP) |
|
$ |
21.22 |
|
|
|
$ |
20.80 |
|
|
|
$ |
20.53 |
|
|
|
$ |
20.16 |
|
|
|
$ |
19.65 |
|
|
|
$ |
21.22 |
|
|
|
$ |
19.65 |
|
|
| Effect of goodwill and other intangibles |
|
(4.27 |
) |
|
|
(4.28 |
) |
|
|
(4.25 |
) |
|
|
(4.26 |
) |
|
|
(4.27 |
) |
|
|
(4.27 |
) |
|
|
(4.27 |
) |
|
| Tangible book value per common share |
|
$ |
16.95 |
|
|
|
$ |
16.52 |
|
|
|
$ |
16.28 |
|
|
|
$ |
15.90 |
|
|
|
$ |
15.38 |
|
|
|
$ |
16.95 |
|
|
|
$ |
15.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on tangible common equity reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on common equity (GAAP) |
|
6.17 |
|
% |
|
7.85 |
|
% |
|
12.07 |
|
% |
|
12.16 |
|
% |
|
11.45 |
|
% |
|
7.01 |
|
% |
|
11.65 |
|
% |
| Merger-related and other charges, net of tax |
|
0.08 |
|
|
|
0.16 |
|
|
|
(0.01 |
) |
|
|
0.51 |
|
|
|
0.82 |
|
|
|
0.12 |
|
|
|
0.49 |
|
|
| Return on common equity - operating |
|
6.25 |
|
|
|
8.01 |
|
|
|
12.06 |
|
|
|
12.67 |
|
|
|
12.27 |
|
|
|
7.13 |
|
|
|
12.14 |
|
|
| Effect of goodwill and other intangibles |
|
1.84 |
|
|
|
2.56 |
|
|
|
3.43 |
|
|
|
3.71 |
|
|
|
3.61 |
|
|
|
2.07 |
|
|
|
3.53 |
|
|
| Return on tangible common equity - operating |
|
8.09 |
|
% |
|
10.57 |
|
% |
|
15.49 |
|
% |
|
16.38 |
|
% |
|
15.88 |
|
% |
|
9.20 |
|
% |
|
15.67 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets (GAAP) |
|
0.71 |
|
% |
|
0.99 |
|
% |
|
1.50 |
|
% |
|
1.51 |
|
% |
|
1.40 |
|
% |
|
0.85 |
|
% |
|
1.42 |
|
% |
| Merger-related and other charges, net of tax |
|
0.01 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.07 |
|
|
|
0.10 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
| Return on assets - operating |
|
0.72 |
|
% |
|
1.01 |
|
% |
|
1.50 |
|
% |
|
1.58 |
|
% |
|
1.50 |
|
% |
|
0.86 |
|
% |
|
1.48 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets to return on assets- pre-tax pre-provision reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets (GAAP) |
|
0.71 |
|
% |
|
0.99 |
|
% |
|
1.50 |
|
% |
|
1.51 |
|
% |
|
1.40 |
|
% |
|
0.85 |
|
% |
|
1.42 |
|
% |
| Income tax expense |
|
0.20 |
|
|
|
0.27 |
|
|
|
0.39 |
|
|
|
0.44 |
|
|
|
0.42 |
|
|
|
0.23 |
|
|
|
0.41 |
|
|
| Provision for credit losses |
|
0.95 |
|
|
|
0.69 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.83 |
|
|
|
0.11 |
|
|
| Return on assets - pre-tax, pre-provision |
|
1.86 |
|
|
|
1.95 |
|
|
|
2.00 |
|
|
|
2.05 |
|
|
|
1.92 |
|
|
|
1.91 |
|
|
|
1.94 |
|
|
| Merger-related and other charges |
|
0.01 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
0.13 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
| Return on assets - pre-tax pre-provision, excluding merger-related and other charges |
|
1.87 |
|
% |
|
1.98 |
|
% |
|
2.00 |
|
% |
|
2.13 |
|
% |
|
2.05 |
|
% |
|
1.92 |
|
% |
|
2.02 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
55.86 |
|
% |
|
56.15 |
|
% |
|
54.87 |
|
% |
|
55.64 |
|
% |
|
57.28 |
|
% |
|
56.00 |
|
% |
|
56.32 |
|
% |
| Merger-related and other charges |
|
(0.27 |
) |
|
|
(0.56 |
) |
|
|
0.05 |
|
|
|
(1.74 |
) |
|
|
(2.86 |
) |
|
|
(0.41 |
) |
|
|
(1.72 |
) |
|
| Efficiency ratio - operating |
|
55.59 |
|
% |
|
55.59 |
|
% |
|
54.92 |
|
% |
|
53.90 |
|
% |
|
54.42 |
|
% |
|
55.59 |
|
% |
|
54.60 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to tangible assets reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity to total assets (GAAP) |
|
11.81 |
|
% |
|
12.54 |
|
% |
|
12.66 |
|
% |
|
12.53 |
|
% |
|
12.25 |
|
% |
|
11.81 |
|
% |
|
12.25 |
|
% |
| Effect of goodwill and other intangibles |
|
(2.05 |
) |
|
|
(2.32 |
) |
|
|
(2.34 |
) |
|
|
(2.37 |
) |
|
|
(2.39 |
) |
|
|
(2.05 |
) |
|
|
(2.39 |
) |
|
| Effect of preferred equity |
|
(0.64 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.64 |
) |
|
|
— |
|
|
| Tangible common equity to tangible assets |
|
9.12 |
|
% |
|
10.22 |
|
% |
|
10.32 |
|
% |
|
10.16 |
|
% |
|
9.86 |
|
% |
|
9.12 |
|
% |
|
9.86 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Portfolio Composition at Period-End |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Linked
|
|
Year over
|
| (in millions) |
Second
Quarter |
|
First
Quarter |
|
Fourth
Quarter |
|
Third
Quarter |
|
Second
Quarter |
|
Quarter
Change |
|
Year
Change |
| LOANS BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied commercial RE |
$ |
1,760 |
|
|
$ |
1,703 |
|
|
$ |
1,720 |
|
|
$ |
1,692 |
|
|
$ |
1,658 |
|
|
$ |
57 |
|
|
$ |
102 |
|
| Income producing commercial RE |
2,178 |
|
|
2,065 |
|
|
2,008 |
|
|
1,934 |
|
|
1,939 |
|
|
113 |
|
|
239 |
|
| Commercial & industrial |
1,219 |
|
|
1,310 |
|
|
1,221 |
|
|
1,271 |
|
|
1,299 |
|
|
(91 |
) |
|
(80 |
) |
| Paycheck protection program |
1,095 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,095 |
|
|
1,095 |
|
| Commercial construction |
946 |
|
|
959 |
|
|
976 |
|
|
1,001 |
|
|
983 |
|
|
(13 |
) |
|
(37 |
) |
| Equipment financing |
779 |
|
|
761 |
|
|
745 |
|
|
729 |
|
|
674 |
|
|
18 |
|
|
105 |
|
| Total commercial |
7,976 |
|
|
6,798 |
|
|
6,670 |
|
|
6,627 |
|
|
6,553 |
|
|
1,178 |
|
|
1,423 |
|
| Residential mortgage |
1,152 |
|
|
1,128 |
|
|
1,118 |
|
|
1,121 |
|
|
1,108 |
|
|
24 |
|
|
44 |
|
| Home equity lines of credit |
654 |
|
|
668 |
|
|
661 |
|
|
669 |
|
|
675 |
|
|
(14 |
) |
|
(21 |
) |
| Residential construction |
230 |
|
|
216 |
|
|
236 |
|
|
229 |
|
|
219 |
|
|
14 |
|
|
11 |
|
| Consumer |
121 |
|
|
125 |
|
|
128 |
|
|
257 |
|
|
283 |
|
|
(4 |
) |
|
(162 |
) |
| Total loans |
$ |
10,133 |
|
|
$ |
8,935 |
|
|
$ |
8,813 |
|
|
$ |
8,903 |
|
|
$ |
8,838 |
|
|
$ |
1,198 |
|
|
$ |
1,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS BY MARKET |
|
|
|
|
|
|
|
|
|
|
|
|
|
| North Georgia |
$ |
951 |
|
|
$ |
958 |
|
|
$ |
967 |
|
|
$ |
1,002 |
|
|
$ |
1,002 |
|
|
(7 |
) |
|
(51 |
) |
| Atlanta |
1,852 |
|
|
1,820 |
|
|
1,762 |
|
|
1,740 |
|
|
1,745 |
|
|
32 |
|
|
107 |
|
| North Carolina |
1,171 |
|
|
1,124 |
|
|
1,156 |
|
|
1,117 |
|
|
1,084 |
|
|
47 |
|
|
87 |
|
| Coastal Georgia |
618 |
|
|
604 |
|
|
631 |
|
|
611 |
|
|
604 |
|
|
14 |
|
|
14 |
|
| Gainesville |
233 |
|
|
235 |
|
|
246 |
|
|
246 |
|
|
244 |
|
|
(2 |
) |
|
(11 |
) |
| East Tennessee |
433 |
|
|
425 |
|
|
421 |
|
|
435 |
|
|
446 |
|
|
8 |
|
|
(13 |
) |
| South Carolina |
1,778 |
|
|
1,774 |
|
|
1,708 |
|
|
1,705 |
|
|
1,674 |
|
|
4 |
|
|
104 |
|
| Commercial Banking Solutions |
3,097 |
|
|
1,995 |
|
|
1,922 |
|
|
1,916 |
|
|
1,884 |
|
|
1,102 |
|
|
1,213 |
|
| Indirect auto |
— |
|
|
— |
|
|
— |
|
|
131 |
|
|
155 |
|
|
— |
|
|
(155 |
) |
| Total loans |
$ |
10,133 |
|
|
$ |
8,935 |
|
|
$ |
8,813 |
|
|
$ |
8,903 |
|
|
$ |
8,838 |
|
|
$ |
1,198 |
|
|
$ |
1,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
| (in thousands) |
|
Second
Quarter |
|
First
Quarter |
|
Fourth
Quarter |
|
|
|
|
|
|
| NONACCRUAL LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied RE |
|
$ |
10,710 |
|
|
$ |
10,405 |
|
|
$ |
10,544 |
|
|
|
|
|
|
|
| Income producing RE |
|
11,274 |
|
|
2,235 |
|
|
1,996 |
|
|
|
|
|
|
|
| Commercial & industrial |
|
3,432 |
|
|
3,169 |
|
|
2,545 |
|
|
|
|
|
|
|
| Commercial construction |
|
2,290 |
|
|
1,724 |
|
|
2,277 |
|
|
|
|
|
|
|
| Equipment financing |
|
3,119 |
|
|
2,439 |
|
|
3,141 |
|
|
|
|
|
|
|
| Total commercial |
|
30,825 |
|
|
19,972 |
|
|
20,503 |
|
|
|
|
|
|
|
| Residential mortgage |
|
13,185 |
|
|
12,458 |
|
|
10,567 |
|
|
|
|
|
|
|
| Home equity lines of credit |
|
3,138 |
|
|
3,010 |
|
|
3,173 |
|
|
|
|
|
|
|
| Residential construction |
|
500 |
|
|
540 |
|
|
939 |
|
|
|
|
|
|
|
| Consumer |
|
373 |
|
|
228 |
|
|
159 |
|
|
|
|
|
|
|
| Total |
|
$ |
48,021 |
|
|
$ |
36,208 |
|
|
$ |
35,341 |
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
Second Quarter |
|
First Quarter |
|
Fourth Quarter |
| (in thousands) |
|
Net Charge-
Offs |
|
Net Charge-
Offs to
Average Loans
(1) |
|
Net Charge-
Offs |
|
Net Charge-
Offs to
Average Loans
(1) |
|
Net Charge-
Offs |
|
Net Charge-
Offs to
Average Loans
(1) |
| NET CHARGE-OFFS BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied RE |
|
$ |
(466 |
) |
|
(0.11 |
) |
% |
|
$ |
(1,028 |
) |
|
(0.24 |
) |
% |
|
$ |
(208 |
) |
|
(0.05 |
) |
% |
| Income producing RE |
|
4,548 |
|
|
0.86 |
|
|
|
270 |
|
|
0.05 |
|
|
|
95 |
|
|
0.02 |
|
|
| Commercial & industrial |
|
(37 |
) |
|
(0.01 |
) |
|
|
7,185 |
|
|
2.30 |
|
|
|
1,809 |
|
|
0.58 |
|
|
| Commercial construction |
|
122 |
|
|
0.05 |
|
|
|
(141 |
) |
|
(0.06 |
) |
|
|
(140 |
) |
|
(0.06 |
) |
|
| Equipment financing |
|
1,665 |
|
|
0.87 |
|
|
|
1,507 |
|
|
0.81 |
|
|
|
1,550 |
|
|
0.84 |
|
|
| Total commercial |
|
5,832 |
|
|
0.31 |
|
|
|
7,793 |
|
|
0.47 |
|
|
|
3,106 |
|
|
0.19 |
|
|
| Residential mortgage |
|
(6 |
) |
|
— |
|
|
|
9 |
|
|
— |
|
|
|
89 |
|
|
0.03 |
|
|
| Home equity lines of credit |
|
(98 |
) |
|
(0.06 |
) |
|
|
(83 |
) |
|
(0.05 |
) |
|
|
198 |
|
|
0.12 |
|
|
| Residential construction |
|
(5 |
) |
|
(0.01 |
) |
|
|
(12 |
) |
|
(0.02 |
) |
|
|
(24 |
) |
|
(0.04 |
) |
|
| Consumer |
|
426 |
|
|
1.39 |
|
|
|
407 |
|
|
1.30 |
|
|
|
556 |
|
|
0.90 |
|
|
| Total |
|
$ |
6,149 |
|
|
0.25 |
|
|
|
$ |
8,114 |
|
|
0.37 |
|
|
|
$ |
3,925 |
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Balance Sheets(Unaudited) |
| (in thousands, except share and per share data) |
|
June 30,
2020 |
|
December 31,
2019 |
|
| ASSETS |
|
|
|
|
|
| Cash and due from banks |
|
$ |
125,255 |
|
|
$ |
125,844 |
|
|
| Interest-bearing deposits in banks |
|
1,203,706 |
|
|
389,362 |
|
|
| Cash and cash equivalents |
|
1,328,961 |
|
|
515,206 |
|
|
| Debt securities available-for-sale |
|
2,125,209 |
|
|
2,274,581 |
|
|
| Debt securities held-to-maturity (fair value $320,253 and $287,904) |
|
306,638 |
|
|
283,533 |
|
|
| Loans held for sale at fair value |
|
99,477 |
|
|
58,484 |
|
|
| Loans and leases held for investment |
|
10,132,510 |
|
|
8,812,553 |
|
|
| Less allowance for credit losses - loans and leases |
|
(103,669 |
) |
|
(62,089 |
) |
|
| Loans and leases, net |
|
10,028,841 |
|
|
8,750,464 |
|
|
| Premises and equipment, net |
|
211,972 |
|
|
215,976 |
|
|
| Bank owned life insurance |
|
200,699 |
|
|
202,664 |
|
|
| Accrued interest receivable |
|
37,774 |
|
|
32,660 |
|
|
| Net deferred tax asset |
|
27,362 |
|
|
34,059 |
|
|
| Derivative financial instruments |
|
94,434 |
|
|
35,007 |
|
|
| Goodwill and other intangible assets, net |
|
340,220 |
|
|
342,247 |
|
|
| Other assets |
|
203,300 |
|
|
171,135 |
|
|
| Total assets |
|
$ |
15,004,887 |
|
|
$ |
12,916,016 |
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Noninterest-bearing demand |
|
$ |
4,689,545 |
|
|
$ |
3,477,979 |
|
|
| NOW and interest-bearing demand |
|
2,582,831 |
|
|
2,461,895 |
|
|
| Money market |
|
2,621,158 |
|
|
2,230,628 |
|
|
| Savings |
|
832,529 |
|
|
706,467 |
|
|
| Time |
|
1,751,091 |
|
|
1,859,574 |
|
|
| Brokered |
|
224,931 |
|
|
160,701 |
|
|
| Total deposits |
|
12,702,085 |
|
|
10,897,244 |
|
|
| Long-term debt |
|
311,631 |
|
|
212,664 |
|
|
| Derivative financial instruments |
|
24,685 |
|
|
15,516 |
|
|
| Accrued expenses and other liabilities |
|
194,841 |
|
|
154,900 |
|
|
| Total liabilities |
|
13,233,242 |
|
|
11,280,324 |
|
|
| Shareholders' equity: |
|
|
|
|
|
Preferred stock; $1 par value; 10,000,000 shares authorized;
Series I, $25,000 per share liquidation preference; 4,000 shares issued and outstanding |
|
96,660 |
|
|
— |
|
|
Common stock, $1 par value; 150,000,000 shares authorized;
78,335,127 and 79,013,729 shares issued and outstanding |
|
78,335 |
|
|
79,014 |
|
|
| Common stock issuable; 596,785 and 664,640 shares |
|
10,646 |
|
|
11,491 |
|
|
| Capital surplus |
|
1,480,464 |
|
|
1,496,641 |
|
|
| Retained earnings |
|
64,990 |
|
|
40,152 |
|
|
| Accumulated other comprehensive income |
|
40,550 |
|
|
8,394 |
|
|
| Total shareholders' equity |
|
1,771,645 |
|
|
1,635,692 |
|
|
| Total liabilities and shareholders' equity |
|
$ |
15,004,887 |
|
|
$ |
12,916,016 |
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Statements of Income(Unaudited) |
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
| (in thousands, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| Interest revenue: |
|
|
|
|
|
|
|
|
|
| Loans, including fees |
|
$ |
107,862 |
|
|
$ |
119,671 |
|
|
$ |
225,925 |
|
|
$ |
234,930 |
|
|
| Investment securities, including tax exempt of $1,570, $1,122, $3,093 and $2,291 |
|
15,615 |
|
|
19,076 |
|
|
33,009 |
|
|
39,894 |
|
|
| Deposits in banks and short-term investments |
|
128 |
|
|
409 |
|
|
1,218 |
|
|
848 |
|
|
| Total interest revenue |
|
123,605 |
|
|
139,156 |
|
|
260,152 |
|
|
275,672 |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
1,628 |
|
|
3,460 |
|
|
4,606 |
|
|
7,069 |
|
|
| Money market |
|
3,421 |
|
|
4,842 |
|
|
7,952 |
|
|
8,974 |
|
|
| Savings |
|
39 |
|
|
42 |
|
|
74 |
|
|
74 |
|
|
| Time |
|
6,183 |
|
|
8,771 |
|
|
13,714 |
|
|
16,955 |
|
|
| Deposits |
|
11,271 |
|
|
17,115 |
|
|
26,346 |
|
|
33,072 |
|
|
| Short-term borrowings |
|
— |
|
|
248 |
|
|
1 |
|
|
409 |
|
|
| Federal Home Loan Bank advances |
|
— |
|
|
752 |
|
|
1 |
|
|
2,174 |
|
|
| Long-term debt |
|
3,030 |
|
|
3,257 |
|
|
5,894 |
|
|
6,599 |
|
|
| Total interest expense |
|
14,301 |
|
|
21,372 |
|
|
32,242 |
|
|
42,254 |
|
|
| Net interest revenue |
|
109,304 |
|
|
117,784 |
|
|
227,910 |
|
|
233,418 |
|
|
| Provision for credit losses |
|
33,543 |
|
|
3,250 |
|
|
55,734 |
|
|
6,550 |
|
|
| Net interest revenue after provision for credit losses |
|
75,761 |
|
|
114,534 |
|
|
172,176 |
|
|
226,868 |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
| Service charges and fees |
|
6,995 |
|
|
9,060 |
|
|
15,633 |
|
|
17,513 |
|
|
| Mortgage loan gains and other related fees |
|
23,659 |
|
|
5,344 |
|
|
31,969 |
|
|
9,092 |
|
|
| Brokerage fees |
|
1,324 |
|
|
1,588 |
|
|
2,964 |
|
|
2,925 |
|
|
| Gains from sales of other loans, net |
|
1,040 |
|
|
1,470 |
|
|
2,714 |
|
|
2,773 |
|
|
| Securities gains (losses), net |
|
— |
|
|
149 |
|
|
— |
|
|
(118 |
) |
|
| Other |
|
7,220 |
|
|
6,920 |
|
|
12,772 |
|
|
13,314 |
|
|
| Total noninterest income |
|
40,238 |
|
|
24,531 |
|
|
66,052 |
|
|
45,499 |
|
|
| Total revenue |
|
115,999 |
|
|
139,065 |
|
|
238,228 |
|
|
272,367 |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expenses: |
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
51,811 |
|
|
48,157 |
|
|
103,169 |
|
|
95,660 |
|
|
| Communications and equipment |
|
6,556 |
|
|
6,222 |
|
|
12,502 |
|
|
12,010 |
|
|
| Occupancy |
|
5,945 |
|
|
5,919 |
|
|
11,659 |
|
|
11,503 |
|
|
| Advertising and public relations |
|
2,260 |
|
|
1,596 |
|
|
3,534 |
|
|
2,882 |
|
|
| Postage, printing and supplies |
|
1,613 |
|
|
1,529 |
|
|
3,283 |
|
|
3,115 |
|
|
| Professional fees |
|
4,823 |
|
|
4,054 |
|
|
8,920 |
|
|
7,215 |
|
|
| Lending and loan servicing expense |
|
3,189 |
|
|
2,619 |
|
|
5,482 |
|
|
4,953 |
|
|
| Outside services - electronic banking |
|
1,796 |
|
|
1,558 |
|
|
3,628 |
|
|
3,167 |
|
|
| FDIC assessments and other regulatory charges |
|
1,558 |
|
|
1,547 |
|
|
3,042 |
|
|
3,257 |
|
|
| Amortization of intangibles |
|
987 |
|
|
1,342 |
|
|
2,027 |
|
|
2,635 |
|
|
| Merger-related and other charges |
|
397 |
|
|
3,894 |
|
|
1,205 |
|
|
4,440 |
|
|
| Other |
|
3,045 |
|
|
3,376 |
|
|
7,067 |
|
|
7,060 |
|
|
| Total noninterest expenses |
|
83,980 |
|
|
81,813 |
|
|
165,518 |
|
|
157,897 |
|
|
| Net income before income taxes |
|
32,019 |
|
|
57,252 |
|
|
72,710 |
|
|
114,470 |
|
|
| Income tax expense |
|
6,923 |
|
|
13,167 |
|
|
15,730 |
|
|
26,123 |
|
|
| Net income |
|
$ |
25,096 |
|
|
$ |
44,085 |
|
|
$ |
56,980 |
|
|
$ |
88,347 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
24,913 |
|
|
$ |
43,769 |
|
|
$ |
56,554 |
|
|
$ |
87,716 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share: |
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.32 |
|
|
$ |
0.55 |
|
|
$ |
0.71 |
|
|
$ |
1.10 |
|
|
| Diluted |
|
0.32 |
|
|
0.55 |
|
|
0.71 |
|
|
1.10 |
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
78,920 |
|
|
79,673 |
|
|
79,130 |
|
|
79,739 |
|
|
| Diluted |
|
78,924 |
|
|
79,678 |
|
|
79,186 |
|
|
79,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Three Months Ended June 30, |
|
|
2020 |
|
2019 |
|
| (dollars in thousands, fully taxable equivalent (FTE)) |
|
Average
Balance |
|
Interest |
|
Average
Rate |
|
Average
Balance |
|
Interest |
|
Average
Rate |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net of unearned income (FTE) (1)(2) |
|
$ |
9,772,703 |
|
|
$ |
107,398 |
|
|
4.42 |
% |
|
$ |
8,669,847 |
|
|
$ |
119,668 |
|
|
5.54 |
% |
|
| Taxable securities (3) |
|
2,229,371 |
|
|
14,045 |
|
|
2.52 |
|
|
2,506,942 |
|
|
17,954 |
|
|
2.86 |
|
|
| Tax-exempt securities (FTE) (1)(3) |
|
178,903 |
|
|
2,110 |
|
|
4.72 |
|
|
166,628 |
|
|
1,507 |
|
|
3.62 |
|
|
| Federal funds sold and other interest-earning assets |
|
776,776 |
|
|
857 |
|
|
0.44 |
|
|
190,678 |
|
|
679 |
|
|
1.42 |
|
|
| Total interest-earning assets (FTE) |
|
12,957,753 |
|
|
124,410 |
|
|
3.86 |
|
|
11,534,095 |
|
|
139,808 |
|
|
4.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
(89,992 |
) |
|
|
|
|
|
(62,716 |
) |
|
|
|
|
|
| Cash and due from banks |
|
138,842 |
|
|
|
|
|
|
125,021 |
|
|
|
|
|
|
| Premises and equipment |
|
217,096 |
|
|
|
|
|
|
224,018 |
|
|
|
|
|
|
| Other assets (3) |
|
949,201 |
|
|
|
|
|
|
787,859 |
|
|
|
|
|
|
| Total assets |
|
$ |
14,172,900 |
|
|
|
|
|
|
$ |
12,608,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
$ |
2,444,895 |
|
|
1,628 |
|
|
0.27 |
|
|
$ |
2,190,080 |
|
|
3,460 |
|
|
0.63 |
|
|
| Money market |
|
2,541,805 |
|
|
3,421 |
|
|
0.54 |
|
|
2,186,282 |
|
|
4,842 |
|
|
0.89 |
|
|
| Savings |
|
788,247 |
|
|
39 |
|
|
0.02 |
|
|
687,753 |
|
|
42 |
|
|
0.02 |
|
|
| Time |
|
1,805,671 |
|
|
6,058 |
|
|
1.35 |
|
|
1,773,968 |
|
|
6,949 |
|
|
1.57 |
|
|
| Brokered time deposits |
|
130,556 |
|
|
125 |
|
|
0.39 |
|
|
298,553 |
|
|
1,822 |
|
|
2.45 |
|
|
| Total interest-bearing deposits |
|
7,711,174 |
|
|
11,271 |
|
|
0.59 |
|
|
7,136,636 |
|
|
17,115 |
|
|
0.96 |
|
|
| Federal funds purchased and other borrowings |
|
1 |
|
|
— |
|
|
— |
|
|
38,838 |
|
|
248 |
|
|
2.56 |
|
|
| Federal Home Loan Bank advances |
|
— |
|
|
— |
|
|
— |
|
|
117,912 |
|
|
752 |
|
|
2.56 |
|
|
| Long-term debt |
|
228,096 |
|
|
3,030 |
|
|
5.34 |
|
|
252,351 |
|
|
3,257 |
|
|
5.18 |
|
|
| Total borrowed funds |
|
228,097 |
|
|
3,030 |
|
|
5.34 |
|
|
409,101 |
|
|
4,257 |
|
|
4.17 |
|
|
| Total interest-bearing liabilities |
|
7,939,271 |
|
|
14,301 |
|
|
0.72 |
|
|
7,545,737 |
|
|
21,372 |
|
|
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
4,360,095 |
|
|
|
|
|
|
3,355,930 |
|
|
|
|
|
|
| Other liabilities |
|
187,375 |
|
|
|
|
|
|
175,806 |
|
|
|
|
|
|
| Total liabilities |
|
12,486,741 |
|
|
|
|
|
|
11,077,473 |
|
|
|
|
|
|
| Shareholders' equity |
|
1,686,159 |
|
|
|
|
|
|
1,530,804 |
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
$ |
14,172,900 |
|
|
|
|
|
|
$ |
12,608,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest revenue (FTE) |
|
|
|
$ |
110,109 |
|
|
|
|
|
|
$ |
118,436 |
|
|
|
|
| Net interest-rate spread (FTE) |
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
3.72 |
% |
|
| Net interest margin (FTE) (4) |
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
4.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $66.3 million in 2020 and unrealized gains of $5.00 million in 2019 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.
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
| (dollars in thousands, fully taxable equivalent (FTE)) |
|
Average
Balance |
|
Interest |
|
Average
Rate |
|
Average
Balance |
|
Interest |
|
Average
Rate |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans, net of unearned income (FTE) (1)(2) |
|
$ |
9,300,792 |
|
|
$ |
225,194 |
|
|
4.87 |
% |
|
$ |
8,550,574 |
|
|
$ |
235,015 |
|
|
5.54 |
% |
|
| Taxable securities (3) |
|
2,293,502 |
|
|
29,916 |
|
|
2.61 |
|
|
2,609,400 |
|
|
37,603 |
|
|
2.88 |
|
|
| Tax-exempt securities (FTE) (1)(3) |
|
170,578 |
|
|
4,155 |
|
|
4.87 |
|
|
168,156 |
|
|
3,077 |
|
|
3.66 |
|
|
| Federal funds sold and other interest-earning assets |
|
612,776 |
|
|
2,489 |
|
|
0.81 |
|
|
188,165 |
|
|
1,297 |
|
|
1.38 |
|
|
| Total interest-earning assets (FTE) |
|
12,377,648 |
|
|
261,754 |
|
|
4.25 |
|
|
11,516,295 |
|
|
276,992 |
|
|
4.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
(79,885 |
) |
|
|
|
|
|
(62,253 |
) |
|
|
|
|
|
| Cash and due from banks |
|
133,548 |
|
|
|
|
|
|
124,414 |
|
|
|
|
|
|
| Premises and equipment |
|
218,170 |
|
|
|
|
|
|
220,335 |
|
|
|
|
|
|
| Other assets (3) |
|
908,828 |
|
|
|
|
|
|
759,899 |
|
|
|
|
|
|
| Total assets |
|
$ |
13,558,309 |
|
|
|
|
|
|
$ |
12,558,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
$ |
2,428,815 |
|
|
4,606 |
|
|
0.38 |
|
|
$ |
2,238,083 |
|
|
7,069 |
|
|
0.64 |
|
|
| Money market |
|
2,441,264 |
|
|
7,952 |
|
|
0.66 |
|
|
2,142,411 |
|
|
8,974 |
|
|
0.84 |
|
|
| Savings |
|
750,179 |
|
|
74 |
|
|
0.02 |
|
|
680,018 |
|
|
74 |
|
|
0.02 |
|
|
| Time |
|
1,823,612 |
|
|
13,308 |
|
|
1.47 |
|
|
1,701,181 |
|
|
12,285 |
|
|
1.46 |
|
|
| Brokered time deposits |
|
105,689 |
|
|
406 |
|
|
0.77 |
|
|
389,794 |
|
|
4,670 |
|
|
2.42 |
|
|
| Total interest-bearing deposits |
|
7,549,559 |
|
|
26,346 |
|
|
0.70 |
|
|
7,151,487 |
|
|
33,072 |
|
|
0.93 |
|
|
| Federal funds purchased and other borrowings |
|
199 |
|
|
1 |
|
|
1.01 |
|
|
30,241 |
|
|
409 |
|
|
2.73 |
|
|
| Federal Home Loan Bank advances |
|
83 |
|
|
1 |
|
|
2.42 |
|
|
170,636 |
|
|
2,174 |
|
|
2.57 |
|
|
| Long-term debt |
|
220,429 |
|
|
5,894 |
|
|
5.38 |
|
|
257,134 |
|
|
6,599 |
|
|
5.18 |
|
|
| Total borrowed funds |
|
220,711 |
|
|
5,896 |
|
|
5.37 |
|
|
458,011 |
|
|
9,182 |
|
|
4.04 |
|
|
| Total interest-bearing liabilities |
|
7,770,270 |
|
|
32,242 |
|
|
0.83 |
|
|
7,609,498 |
|
|
42,254 |
|
|
1.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
3,943,740 |
|
|
|
|
|
|
3,275,612 |
|
|
|
|
|
|
| Other liabilities |
|
174,781 |
|
|
|
|
|
|
169,048 |
|
|
|
|
|
|
| Total liabilities |
|
11,888,791 |
|
|
|
|
|
|
11,054,158 |
|
|
|
|
|
|
| Shareholders' equity |
|
1,669,518 |
|
|
|
|
|
|
1,504,532 |
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
$ |
13,558,309 |
|
|
|
|
|
|
$ |
12,558,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest revenue (FTE) |
|
|
|
$ |
229,512 |
|
|
|
|
|
|
$ |
234,738 |
|
|
|
|
| Net interest-rate spread (FTE) |
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
3.72 |
% |
|
| Net interest margin (FTE) (4) |
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
4.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3) Securities available for sale are shown at amortized cost. Pretax unrealized gains of $59.6 million in 2020 and unrealized losses of $10.4 million in 2019 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) (United) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $15.0 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee at June 30, 2020. Through its July 1st acquisition of Three Shores Bancorporation and its wholly-owned banking subsidiary, Seaside National Bank & Trust, United added approximately $2.1 billion in assets and 14 banking offices in key metropolitan markets throughout Florida. United Community Bank, United’s wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, now including Florida under the brand Seaside Bank and Trust. Services include a full range of consumer and commercial banking products, including mortgage, advisory, treasury management, and now wealth management. Respected national research firms consistently recognize United for outstanding customer service. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2020 list of the 100 Best Banks in America for the seventh consecutive year. United also received five Greenwich Excellence Awards in 2019 for excellence in Small Business Banking and Middle Market Banking, including a national award for Overall Satisfaction in Small Business Banking. Additional information about United can be found at www.ucbi.com.
Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “pre-tax pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax pre-provision, excluding merger-related and other charges,” “return on assets – pre-tax pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.
For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
