GREENVILLE, S.C., Oct. 20, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported third quarter financial results, including solid year-over-year loan and deposit growth and record operating efficiency. United delivered net income of $47.6 million and pre-tax pre-provision income of $81.2 million. Diluted earnings per share of $0.52 for the quarter represented a decrease of $0.08 or 13%, from a year ago. This decline is largely due to an increase in credit loss provisioning associated with loan growth and the acquisition of Seaside National Bank & Trust (Seaside) along with net interest margin declines largely driven by declines in market interest rates. Compared to the second quarter, diluted earnings per share were up by $0.20 or 63%. Excluding merger-related and other charges, diluted operating earnings per share were $0.55, also down 13% from last year, but up $0.23 per share or 72% compared to second quarter. United’s GAAP return on assets (ROA) was 1.07% and its return on common equity was 10.1% for the quarter. On an operating basis, United’s ROA was 1.14% and its return on tangible common equity was 13.5%. On a pre-tax, pre-provision basis, and excluding merger-related and other charges, ROA was 1.93%.
Chairman and CEO Lynn Harton stated, “While the future economic and operating environment remains uncertain, I am pleased with the financial strength and resilience of the company and the dedication of our employees who consistently provide outstanding customer service. Our markets continue to recover from the economic effects of the pandemic and I am pleased to report that loan payment deferrals have declined from a peak of $1.9 billion, or 15.9% of the total loan portfolio at June 30, 2020 to $365 million, or 3.1% of the total loan portfolio at September 30, 2020.”
Harton continued, “Our acquisition of Seaside, which closed on July 1st, positions us well in attractive Florida markets and we are pleased with the talent of the Seaside team and the deep relationships they have built with their clients. We plan to pilot Seaside’s high net worth offering of asset management and trust services in select markets of United’s footprint in the late fourth quarter. Additionally, we have made solid progress on the business integration and are already moving forward with additional products, including mortgage, middle market, commercial real estate, SBA, asset-based and non-profit lending, to compliment Seaside’s product offerings. We are proud to welcome Seaside to the United team.”
Total loans increased by $1.7 billion during the quarter—primarily driven by the acquisition of Seaside. Excluding the effects of the acquisition, core organic loan growth was 8% annualized. Core transaction deposits grew by $1.7 billion during the quarter, with $1.3 billion resulting from the Seaside acquisition, supplemented by approximately $400 million in organic growth. United’s cost of deposits decreased by 13 basis points to 0.25%. The net interest margin decreased 15 basis points from the second quarter due to a combination of factors, including lower overall market rates.
Mr. Harton concluded, “We are focused on our long-term goal of remaining a top performer in our peer group. While this is a difficult environment in which to forecast future economic conditions, we are encouraged by increasing business activity in our markets and stable credit performance in our portfolio to date. Our strong balance sheet position gives us the ability to continue to support our customers and communities, and we believe we will be well positioned to be able to take advantage of expansion opportunities in the future.”
Thir d Quarter 2020 Financial Highlights:
- EPS decreased by 13% compared to last year on both a GAAP and operating basis; compared to second quarter, EPS increased by 63% on a GAAP basis and 72% on an operating basis
- Return on assets of 1.07%, or 1.14% excluding merger-related and other charges
- Pre-tax, pre-provision return on assets of 1.86%, or 1.93% excluding merger-related and other charges
- Return on common equity of 10.1%
- Return on tangible common equity of 13.5%, excluding merger-related and other charges
- A provision for credit losses of $21.8 million of which $10.7 million is attributable to establishing an allowance for credit losses for Seaside’s acquired loans
- Loan production of $1.0 billion and loan growth of $1.7 billion with $1.4 billion attributable to loans acquired from Seaside and core loan growth at an annualized rate of 8% for the quarter
- Core transaction deposits were up $1.7 billion with $1.3 billion attributable to Seaside and approximately $400 million in organic growth, which represents a 15% annualized growth rate for the quarter
- Net interest margin of 3.27% was down 15 basis points from the second quarter, reflecting the low rate environment, the Seaside acquisition, and increasing balance sheet liquidity
- Record mortgage rate locks of $910 million, which is $108 million or 13% higher than the previous record set in the second quarter; this compares to $508 million a year ago
- Noninterest income was up $7.7 million on a linked quarter basis, excluding net securities gains; Seaside contributed nearly $2.5 million of the increase and mortgage loan and related fees were up $1.5 million, primarily driven by record mortgage rate locks and production
- Efficiency ratio of 54.1%, or a record low 52.2% excluding merger-related and other charges
- Net charge-offs of $2.5 million, or 9 basis points as a percent of average loans, down 16 basis points from in the second quarter
- Nonperforming assets of 0.29% of total assets, which is down 3 basis points compared to June 30, 2020
- Total deferrals of $365 million or 3% of the total loan portfolio compared to $1.9 billion or 16% in the second quarter
- $500,000 of funding for the United Community Bank Foundation, adding to the initial $1 million contribution in the second quarter for charities and causes throughout the footprint
Conference Call
United will hold a conference call, Wednesday, October 21, 2020, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 7466997. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com .
| UNITED COMMUNITY BANKS, INC. |
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| Selected Financial Information |
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2020 |
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2019 |
|
Third
Quarter
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|
For the Nine Months Ended September 30, |
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| (in thousands, except per share data) |
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Third
Quarter |
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Second
Quarter |
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First
Quarter |
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Fourth
Quarter |
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Third
Quarter |
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2020 -
2019
Change |
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2020 |
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2019 |
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YTD
2020 -
2019
Change |
| INCOME SUMMARY |
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|
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| Interest revenue |
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$ |
141,773 |
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|
$ |
123,605 |
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|
|
$ |
136,547 |
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|
$ |
136,419 |
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|
|
$ |
140,615 |
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|
|
|
$ |
401,925 |
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|
$ |
416,287 |
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| Interest expense |
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13,319 |
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|
14,301 |
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|
17,941 |
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|
19,781 |
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21,277 |
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|
45,561 |
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63,531 |
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| Net interest revenue |
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128,454 |
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109,304 |
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118,606 |
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116,638 |
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119,338 |
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8 |
% |
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356,364 |
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352,756 |
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1 |
% |
| Provision for credit losses |
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21,793 |
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33,543 |
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22,191 |
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|
3,500 |
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3,100 |
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77,527 |
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9,650 |
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| Noninterest income |
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48,682 |
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40,238 |
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25,814 |
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30,183 |
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29,031 |
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68 |
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|
114,734 |
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|
74,530 |
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54 |
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| Total revenue |
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155,343 |
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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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7 |
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393,571 |
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417,636 |
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(6 |
) |
| Expenses |
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95,981 |
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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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16 |
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261,499 |
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240,821 |
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9 |
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| Income before income tax expense |
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59,362 |
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32,019 |
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40,691 |
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61,897 |
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62,345 |
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(5 |
) |
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132,072 |
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176,815 |
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(25 |
) |
| Income tax expense |
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11,755 |
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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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(16 |
) |
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27,485 |
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40,106 |
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(31 |
) |
| Net income |
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47,607 |
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|
25,096 |
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31,884 |
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|
49,012 |
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48,362 |
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(2 |
) |
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104,587 |
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|
136,709 |
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(23 |
) |
| Merger-related and other charges |
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3,361 |
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|
397 |
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|
808 |
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(74 |
) |
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|
2,605 |
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4,566 |
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7,431 |
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| Income tax benefit of merger-related and other charges |
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(519 |
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(87 |
) |
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(182 |
) |
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17 |
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(600 |
) |
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(788 |
) |
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(1,712 |
) |
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| Net income - operating (1) |
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$ |
50,449 |
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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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— |
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$ |
108,365 |
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$ |
142,428 |
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(24 |
) |
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| Pre-tax pre-provision income (5) |
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$ |
81,155 |
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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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24 |
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|
$ |
209,599 |
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$ |
186,465 |
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12 |
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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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$ |
0.52 |
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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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(13 |
) |
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$ |
1.25 |
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$ |
1.70 |
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(26 |
) |
| Diluted net income - operating (1) |
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0.55 |
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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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(13 |
) |
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1.29 |
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|
1.77 |
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(27 |
) |
| 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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0.18 |
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0.17 |
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6 |
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0.54 |
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0.50 |
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8 |
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| Book value |
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21.45 |
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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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6 |
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21.45 |
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|
20.16 |
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6 |
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| Tangible book value (3) |
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17.09 |
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|
16.95 |
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16.52 |
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16.28 |
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15.90 |
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7 |
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17.09 |
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|
15.90 |
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7 |
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| Key performance ratios: |
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| Return on common equity - GAAP (2)(4) |
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10.06 |
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% |
|
6.17 |
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% |
|
7.85 |
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% |
|
12.07 |
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% |
|
12.16 |
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% |
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|
8.11 |
% |
|
11.83 |
% |
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| Return on common equity - operating (1)(2)(4) |
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10.69 |
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6.25 |
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|
8.01 |
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|
12.06 |
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12.67 |
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8.40 |
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|
12.32 |
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| Return on tangible common equity - operating (1)(2)(3)(4) |
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13.52 |
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8.09 |
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|
10.57 |
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15.49 |
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16.38 |
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|
10.76 |
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|
15.92 |
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| Return on assets - GAAP (4) |
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1.07 |
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|
0.71 |
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|
0.99 |
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|
1.50 |
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1.51 |
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|
0.93 |
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|
1.45 |
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| Return on assets - operating (1)(4) |
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1.14 |
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|
0.72 |
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|
1.01 |
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|
1.50 |
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|
1.58 |
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|
0.97 |
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|
1.51 |
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| Return on assets - pre-tax pre-provision (4)(5) |
|
1.86 |
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|
1.86 |
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|
|
1.95 |
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|
2.00 |
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|
2.05 |
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|
|
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|
1.89 |
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|
1.98 |
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| Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5) |
|
1.93 |
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|
1.87 |
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|
1.98 |
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|
2.00 |
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|
2.13 |
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|
|
|
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|
1.93 |
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|
2.06 |
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| Net interest margin (fully taxable equivalent) (4) |
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3.27 |
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|
3.42 |
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|
4.07 |
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|
3.93 |
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|
4.12 |
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|
3.55 |
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|
4.11 |
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| Efficiency ratio - GAAP |
|
54.14 |
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|
55.86 |
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|
56.15 |
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|
54.87 |
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|
55.64 |
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|
55.30 |
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|
56.09 |
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| Efficiency ratio - operating (1) |
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52.24 |
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|
55.59 |
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|
55.59 |
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|
|
54.92 |
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|
53.90 |
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|
|
|
|
54.34 |
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|
54.36 |
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| Equity to total assets |
|
11.47 |
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|
11.81 |
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|
|
12.54 |
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|
|
12.66 |
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|
|
12.53 |
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|
|
|
|
11.47 |
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|
12.53 |
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| Tangible common equity to tangible assets (3) |
|
8.89 |
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|
|
9.12 |
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|
|
10.22 |
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|
|
10.32 |
|
|
|
10.16 |
|
|
|
|
|
8.89 |
|
|
10.16 |
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|
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| ASSET QUALITY |
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|
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| Nonperforming loans |
|
$ |
49,084 |
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|
|
$ |
48,021 |
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|
|
$ |
36,208 |
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|
|
$ |
35,341 |
|
|
|
$ |
30,832 |
|
|
|
59 |
|
|
$ |
49,084 |
|
|
$ |
30,832 |
|
|
59 |
|
| Foreclosed properties |
|
953 |
|
|
|
477 |
|
|
|
475 |
|
|
|
476 |
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|
|
102 |
|
|
|
|
|
953 |
|
|
102 |
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|
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| Total nonperforming assets ("NPAs") |
|
50,037 |
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|
|
48,498 |
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|
|
36,683 |
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|
|
35,817 |
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|
|
30,934 |
|
|
|
62 |
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|
50,037 |
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|
30,934 |
|
|
62 |
|
| Allowance for credit losses - loans |
|
134,256 |
|
|
|
103,669 |
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|
|
81,905 |
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|
|
62,089 |
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|
|
62,514 |
|
|
|
115 |
|
|
134,256 |
|
|
62,514 |
|
|
115 |
|
| Net charge-offs |
|
2,538 |
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|
|
6,149 |
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|
|
8,114 |
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|
|
3,925 |
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|
|
2,723 |
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|
(7 |
) |
|
16,801 |
|
|
8,291 |
|
|
103 |
|
| Allowance for credit losses - loans to loans |
|
1.14 |
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% |
|
1.02 |
|
% |
|
0.92 |
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% |
|
0.70 |
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% |
|
0.70 |
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% |
|
|
|
1.14 |
% |
|
0.70 |
% |
|
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| Net charge-offs to average loans (4) |
|
0.09 |
|
|
|
0.25 |
|
|
|
0.37 |
|
|
|
0.18 |
|
|
|
0.12 |
|
|
|
|
|
0.22 |
|
|
0.13 |
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|
|
| NPAs to loans and foreclosed properties |
|
0.42 |
|
|
|
0.48 |
|
|
|
0.41 |
|
|
|
0.41 |
|
|
|
0.35 |
|
|
|
|
|
0.42 |
|
|
0.35 |
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|
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| NPAs to total assets |
|
0.29 |
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|
|
0.32 |
|
|
|
0.28 |
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|
|
0.28 |
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|
|
0.24 |
|
|
|
|
|
0.29 |
|
|
0.24 |
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| AVERAGE BALANCES ($ in millions) |
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|
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|
|
|
|
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|
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|
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| Loans |
|
$ |
11,644 |
|
|
|
$ |
9,773 |
|
|
|
$ |
8,829 |
|
|
|
$ |
8,890 |
|
|
|
$ |
8,836 |
|
|
|
32 |
|
|
$ |
10,088 |
|
|
$ |
8,647 |
|
|
17 |
|
| Investment securities |
|
2,750 |
|
|
|
2,408 |
|
|
|
2,520 |
|
|
|
2,486 |
|
|
|
2,550 |
|
|
|
8 |
|
|
2,560 |
|
|
2,701 |
|
|
(5 |
) |
| Earning assets |
|
15,715 |
|
|
|
12,958 |
|
|
|
11,798 |
|
|
|
11,832 |
|
|
|
11,568 |
|
|
|
36 |
|
|
13,498 |
|
|
11,534 |
|
|
17 |
|
| Total assets |
|
17,013 |
|
|
|
14,173 |
|
|
|
12,944 |
|
|
|
12,946 |
|
|
|
12,681 |
|
|
|
34 |
|
|
14,718 |
|
|
12,600 |
|
|
17 |
|
| Deposits |
|
14,460 |
|
|
|
12,071 |
|
|
|
10,915 |
|
|
|
10,924 |
|
|
|
10,531 |
|
|
|
37 |
|
|
12,490 |
|
|
10,462 |
|
|
19 |
|
| Shareholders’ equity |
|
1,948 |
|
|
|
1,686 |
|
|
|
1,653 |
|
|
|
1,623 |
|
|
|
1,588 |
|
|
|
23 |
|
|
1,763 |
|
|
1,533 |
|
|
15 |
|
| Common shares - basic (thousands) |
|
87,129 |
|
|
|
78,920 |
|
|
|
79,340 |
|
|
|
79,659 |
|
|
|
79,663 |
|
|
|
9 |
|
|
81,815 |
|
|
79,714 |
|
|
3 |
|
| Common shares - diluted (thousands) |
|
87,205 |
|
|
|
78,924 |
|
|
|
79,446 |
|
|
|
79,669 |
|
|
|
79,667 |
|
|
|
9 |
|
|
81,876 |
|
|
79,718 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AT PERIOD END ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$ |
11,799 |
|
|
|
$ |
10,133 |
|
|
|
$ |
8,935 |
|
|
|
$ |
8,813 |
|
|
|
$ |
8,903 |
|
|
|
33 |
|
|
$ |
11,799 |
|
|
$ |
8,903 |
|
|
33 |
|
| Investment securities |
|
3,089 |
|
|
|
2,432 |
|
|
|
2,540 |
|
|
|
2,559 |
|
|
|
2,515 |
|
|
|
23 |
|
|
3,089 |
|
|
2,515 |
|
|
23 |
|
| Total assets |
|
17,153 |
|
|
|
15,005 |
|
|
|
13,086 |
|
|
|
12,916 |
|
|
|
12,809 |
|
|
|
34 |
|
|
17,153 |
|
|
12,809 |
|
|
34 |
|
| Deposits |
|
14,603 |
|
|
|
12,702 |
|
|
|
11,035 |
|
|
|
10,897 |
|
|
|
10,757 |
|
|
|
36 |
|
|
14,603 |
|
|
10,757 |
|
|
36 |
|
| Shareholders’ equity |
|
1,967 |
|
|
|
1,772 |
|
|
|
1,641 |
|
|
|
1,636 |
|
|
|
1,605 |
|
|
|
23 |
|
|
1,967 |
|
|
1,605 |
|
|
23 |
|
| Common shares outstanding (thousands) |
|
86,611 |
|
|
|
78,335 |
|
|
|
78,284 |
|
|
|
79,014 |
|
|
|
78,974 |
|
|
|
10 |
|
|
86,611 |
|
|
78,974 |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 Nine Months Ended
September 30, |
|
|
Third
|
|
Second |
|
First |
|
Fourth
|
|
Third |
|
|
|
|
| (in thousands, except per share data) |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expense reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (GAAP) |
|
$ |
95,981 |
|
|
|
$ |
83,980 |
|
|
|
$ |
81,538 |
|
|
|
$ |
81,424 |
|
|
|
$ |
82,924 |
|
|
|
$ |
261,499 |
|
|
|
$ |
240,821 |
|
|
| Merger-related and other charges |
|
(3,361 |
) |
|
|
(397 |
) |
|
|
(808 |
) |
|
|
74 |
|
|
|
(2,605 |
) |
|
|
(4,566 |
) |
|
|
(7,431 |
) |
|
| Expenses - operating |
|
$ |
92,620 |
|
|
|
$ |
83,583 |
|
|
|
$ |
80,730 |
|
|
|
$ |
81,498 |
|
|
|
$ |
80,319 |
|
|
|
$ |
256,933 |
|
|
|
$ |
233,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income to operating income reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
$ |
47,607 |
|
|
|
$ |
25,096 |
|
|
|
$ |
31,884 |
|
|
|
$ |
49,012 |
|
|
|
$ |
48,362 |
|
|
|
$ |
104,587 |
|
|
|
$ |
136,709 |
|
|
| Merger-related and other charges |
|
3,361 |
|
|
|
397 |
|
|
|
808 |
|
|
|
(74 |
) |
|
|
2,605 |
|
|
|
4,566 |
|
|
|
7,431 |
|
|
| Income tax benefit of merger-related and other charges |
|
(519 |
) |
|
|
(87 |
) |
|
|
(182 |
) |
|
|
17 |
|
|
|
(600 |
) |
|
|
(788 |
) |
|
|
(1,712 |
) |
|
| Net income - operating |
|
$ |
50,449 |
|
|
|
$ |
25,406 |
|
|
|
$ |
32,510 |
|
|
|
$ |
48,955 |
|
|
|
$ |
50,367 |
|
|
|
$ |
108,365 |
|
|
|
$ |
142,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income to pre-tax pre-provision income reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
$ |
47,607 |
|
|
|
$ |
25,096 |
|
|
|
$ |
31,884 |
|
|
|
$ |
49,012 |
|
|
|
$ |
48,362 |
|
|
|
$ |
104,587 |
|
|
|
$ |
136,709 |
|
|
| Income tax expense |
|
11,755 |
|
|
|
6,923 |
|
|
|
8,807 |
|
|
|
12,885 |
|
|
|
13,983 |
|
|
|
27,485 |
|
|
|
40,106 |
|
|
| Provision for credit losses |
|
21,793 |
|
|
|
33,543 |
|
|
|
22,191 |
|
|
|
3,500 |
|
|
|
3,100 |
|
|
|
77,527 |
|
|
|
9,650 |
|
|
| Pre-tax pre-provision income |
|
$ |
81,155 |
|
|
|
$ |
65,562 |
|
|
|
$ |
62,882 |
|
|
|
$ |
65,397 |
|
|
|
$ |
65,445 |
|
|
|
$ |
209,599 |
|
|
|
$ |
186,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted income per common share reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted income per common share (GAAP) |
|
$ |
0.52 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.40 |
|
|
|
$ |
0.61 |
|
|
|
$ |
0.60 |
|
|
|
$ |
1.25 |
|
|
|
$ |
1.70 |
|
|
| Merger-related and other charges, net of tax |
|
0.03 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.07 |
|
|
| Diluted income per common share - operating |
|
$ |
0.55 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.41 |
|
|
|
$ |
0.61 |
|
|
|
$ |
0.63 |
|
|
|
$ |
1.29 |
|
|
|
$ |
1.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share (GAAP) |
|
$ |
21.45 |
|
|
|
$ |
21.22 |
|
|
|
$ |
20.80 |
|
|
|
$ |
20.53 |
|
|
|
$ |
20.16 |
|
|
|
$ |
21.45 |
|
|
|
$ |
20.16 |
|
|
| Effect of goodwill and other intangibles |
|
(4.36 |
) |
|
|
(4.27 |
) |
|
|
(4.28 |
) |
|
|
(4.25 |
) |
|
|
(4.26 |
) |
|
|
(4.36 |
) |
|
|
(4.26 |
) |
|
| Tangible book value per common share |
|
$ |
17.09 |
|
|
|
$ |
16.95 |
|
|
|
$ |
16.52 |
|
|
|
$ |
16.28 |
|
|
|
$ |
15.90 |
|
|
|
$ |
17.09 |
|
|
|
$ |
15.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on tangible common equity reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on common equity (GAAP) |
|
10.06 |
|
% |
|
6.17 |
|
% |
|
7.85 |
|
% |
|
12.07 |
|
% |
|
12.16 |
|
% |
|
8.11 |
|
% |
|
11.83 |
|
% |
| Merger-related and other charges, net of tax |
|
0.63 |
|
|
|
0.08 |
|
|
|
0.16 |
|
|
|
(0.01 |
) |
|
|
0.51 |
|
|
|
0.29 |
|
|
|
0.49 |
|
|
| Return on common equity - operating |
|
10.69 |
|
|
|
6.25 |
|
|
|
8.01 |
|
|
|
12.06 |
|
|
|
12.67 |
|
|
|
8.40 |
|
|
|
12.32 |
|
|
| Effect of goodwill and other intangibles |
|
2.83 |
|
|
|
1.84 |
|
|
|
2.56 |
|
|
|
3.43 |
|
|
|
3.71 |
|
|
|
2.36 |
|
|
|
3.60 |
|
|
| Return on tangible common equity - operating |
|
13.52 |
|
% |
|
8.09 |
|
% |
|
10.57 |
|
% |
|
15.49 |
|
% |
|
16.38 |
|
% |
|
10.76 |
|
% |
|
15.92 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets (GAAP) |
|
1.07 |
|
% |
|
0.71 |
|
% |
|
0.99 |
|
% |
|
1.50 |
|
% |
|
1.51 |
|
% |
|
0.93 |
|
% |
|
1.45 |
|
% |
| Merger-related and other charges, net of tax |
|
0.07 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.07 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
| Return on assets - operating |
|
1.14 |
|
% |
|
0.72 |
|
% |
|
1.01 |
|
% |
|
1.50 |
|
% |
|
1.58 |
|
% |
|
0.97 |
|
% |
|
1.51 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets to return on assets- pre-tax pre-provision reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on assets (GAAP) |
|
1.07 |
|
% |
|
0.71 |
|
% |
|
0.99 |
|
% |
|
1.50 |
|
% |
|
1.51 |
|
% |
|
0.93 |
|
% |
|
1.45 |
|
% |
| Income tax expense |
|
0.28 |
|
|
|
0.20 |
|
|
|
0.27 |
|
|
|
0.39 |
|
|
|
0.44 |
|
|
|
0.26 |
|
|
|
0.43 |
|
|
| Provision for credit losses |
|
0.51 |
|
|
|
0.95 |
|
|
|
0.69 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.70 |
|
|
|
0.10 |
|
|
| Return on assets - pre-tax, pre-provision |
|
1.86 |
|
|
|
1.86 |
|
|
|
1.95 |
|
|
|
2.00 |
|
|
|
2.05 |
|
|
|
1.89 |
|
|
|
1.98 |
|
|
| Merger-related and other charges |
|
0.07 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
0.04 |
|
|
|
0.08 |
|
|
| Return on assets - pre-tax pre-provision, excluding merger-related and other charges |
|
1.93 |
|
% |
|
1.87 |
|
% |
|
1.98 |
|
% |
|
2.00 |
|
% |
|
2.13 |
|
% |
|
1.93 |
|
% |
|
2.06 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
54.14 |
|
% |
|
55.86 |
|
% |
|
56.15 |
|
% |
|
54.87 |
|
% |
|
55.64 |
|
% |
|
55.30 |
|
% |
|
56.09 |
|
% |
| Merger-related and other charges |
|
(1.90 |
) |
|
|
(0.27 |
) |
|
|
(0.56 |
) |
|
|
0.05 |
|
|
|
(1.74 |
) |
|
|
(0.96 |
) |
|
|
(1.73 |
) |
|
| Efficiency ratio - operating |
|
52.24 |
|
% |
|
55.59 |
|
% |
|
55.59 |
|
% |
|
54.92 |
|
% |
|
53.90 |
|
% |
|
54.34 |
|
% |
|
54.36 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to tangible assets reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity to total assets (GAAP) |
|
11.47 |
|
% |
|
11.81 |
|
% |
|
12.54 |
|
% |
|
12.66 |
|
% |
|
12.53 |
|
% |
|
11.47 |
|
% |
|
12.53 |
|
% |
| Effect of goodwill and other intangibles |
|
(2.02 |
) |
|
|
(2.05 |
) |
|
|
(2.32 |
) |
|
|
(2.34 |
) |
|
|
(2.37 |
) |
|
|
(2.02 |
) |
|
|
(2.37 |
) |
|
| Effect of preferred equity |
|
(0.56 |
) |
|
|
(0.64 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.56 |
) |
|
|
— |
|
|
| Tangible common equity to tangible assets |
|
8.89 |
|
% |
|
9.12 |
|
% |
|
10.22 |
|
% |
|
10.32 |
|
% |
|
10.16 |
|
% |
|
8.89 |
|
% |
|
10.16 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Portfolio Composition at Period-End |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Linked |
|
Year over |
| (in millions) |
Third
Quarter |
|
Second
Quarter |
|
First
Quarter |
|
Fourth
Quarter |
|
Third
Quarter |
|
Quarter
Change |
|
Year
Change |
| LOANS BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied commercial RE |
$ |
2,009 |
|
|
$ |
1,759 |
|
|
$ |
1,703 |
|
|
$ |
1,720 |
|
|
$ |
1,692 |
|
|
$ |
250 |
|
|
|
$ |
317 |
|
|
| Income producing commercial RE |
2,493 |
|
|
2,178 |
|
|
2,065 |
|
|
2,008 |
|
|
1,934 |
|
|
315 |
|
|
|
559 |
|
|
| Commercial & industrial |
1,788 |
|
|
1,219 |
|
|
1,310 |
|
|
1,221 |
|
|
1,271 |
|
|
569 |
|
|
|
517 |
|
|
| Paycheck protection program |
1,317 |
|
|
1,095 |
|
|
— |
|
|
— |
|
|
— |
|
|
222 |
|
|
|
1,317 |
|
|
| Commercial construction |
987 |
|
|
946 |
|
|
959 |
|
|
976 |
|
|
1,001 |
|
|
41 |
|
|
|
(14 |
) |
|
| Equipment financing |
823 |
|
|
779 |
|
|
761 |
|
|
745 |
|
|
729 |
|
|
44 |
|
|
|
94 |
|
|
| Total commercial |
9,417 |
|
|
7,976 |
|
|
6,798 |
|
|
6,670 |
|
|
6,627 |
|
|
1,441 |
|
|
|
2,790 |
|
|
| Residential mortgage |
1,270 |
|
|
1,152 |
|
|
1,128 |
|
|
1,118 |
|
|
1,121 |
|
|
118 |
|
|
|
149 |
|
|
| Home equity lines of credit |
707 |
|
|
654 |
|
|
668 |
|
|
661 |
|
|
669 |
|
|
53 |
|
|
|
38 |
|
|
| Residential construction |
257 |
|
|
230 |
|
|
216 |
|
|
236 |
|
|
229 |
|
|
27 |
|
|
|
28 |
|
|
| Consumer |
148 |
|
|
121 |
|
|
125 |
|
|
128 |
|
|
257 |
|
|
27 |
|
|
|
(109 |
) |
|
| Total loans |
$ |
11,799 |
|
|
$ |
10,133 |
|
|
$ |
8,935 |
|
|
$ |
8,813 |
|
|
$ |
8,903 |
|
|
$ |
1,666 |
|
|
|
$ |
2,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS BY MARKET |
|
|
|
|
|
|
|
|
|
|
|
|
|
| North Georgia |
$ |
945 |
|
|
$ |
951 |
|
|
$ |
958 |
|
|
$ |
967 |
|
|
$ |
1,002 |
|
|
$ |
(6 |
) |
|
|
$ |
(57 |
) |
|
| Atlanta |
1,853 |
|
|
1,852 |
|
|
1,820 |
|
|
1,762 |
|
|
1,740 |
|
|
1 |
|
|
|
113 |
|
|
| North Carolina |
1,246 |
|
|
1,171 |
|
|
1,124 |
|
|
1,156 |
|
|
1,117 |
|
|
75 |
|
|
|
129 |
|
|
| Coastal Georgia |
614 |
|
|
618 |
|
|
604 |
|
|
631 |
|
|
611 |
|
|
(4 |
) |
|
|
3 |
|
|
| Gainesville |
229 |
|
|
233 |
|
|
235 |
|
|
246 |
|
|
246 |
|
|
(4 |
) |
|
|
(17 |
) |
|
| East Tennessee |
420 |
|
|
433 |
|
|
425 |
|
|
421 |
|
|
435 |
|
|
(13 |
) |
|
|
(15 |
) |
|
| South Carolina |
1,870 |
|
|
1,778 |
|
|
1,774 |
|
|
1,708 |
|
|
1,705 |
|
|
92 |
|
|
|
165 |
|
|
| Florida |
1,453 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,453 |
|
|
|
1,453 |
|
|
| Commercial Banking Solutions |
3,169 |
|
|
3,097 |
|
|
1,995 |
|
|
1,922 |
|
|
1,916 |
|
|
72 |
|
|
|
1,253 |
|
|
| Indirect auto |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
131 |
|
|
— |
|
|
|
(131 |
) |
|
| Total loans |
$ |
11,799 |
|
|
$ |
10,133 |
|
|
$ |
8,935 |
|
|
$ |
8,813 |
|
|
$ |
8,903 |
|
|
$ |
1,666 |
|
|
|
$ |
2,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
|
|
|
|
| (in thousands) |
|
Third
Quarter |
|
Second
Quarter |
|
First
Quarter |
|
|
|
|
|
|
|
| NONACCRUAL LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owner occupied RE |
|
$ |
11,075 |
|
|
|
$ |
10,710 |
|
|
|
$ |
10,405 |
|
|
|
|
|
|
|
|
| Income producing RE |
|
12,230 |
|
|
|
11,274 |
|
|
|
2,235 |
|
|
|
|
|
|
|
|
| Commercial & industrial |
|
3,534 |
|
|
|
3,432 |
|
|
|
3,169 |
|
|
|
|
|
|
|
|
| Commercial construction |
|
1,863 |
|
|
|
2,290 |
|
|
|
1,724 |
|
|
|
|
|
|
|
|
| Equipment financing |
|
3,137 |
|
|
|
3,119 |
|
|
|
2,439 |
|
|
|
|
|
|
|
|
| Total commercial |
|
31,839 |
|
|
|
30,825 |
|
|
|
19,972 |
|
|
|
|
|
|
|
|
| Residential mortgage |
|
13,864 |
|
|
|
13,185 |
|
|
|
12,458 |
|
|
|
|
|
|
|
|
| Home equity lines of credit |
|
2,642 |
|
|
|
3,138 |
|
|
|
3,010 |
|
|
|
|
|
|
|
|
| Residential construction |
|
479 |
|
|
|
500 |
|
|
|
540 |
|
|
|
|
|
|
|
|
| Consumer |
|
260 |
|
|
|
373 |
|
|
|
228 |
|
|
|
|
|
|
|
|
| Total |
|
$ |
49,084 |
|
|
|
$ |
48,021 |
|
|
|
$ |
36,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
Third Quarter |
|
Second Quarter |
|
First 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 |
|
$ |
(725 |
) |
|
|
(0.14 |
) |
% |
|
$ |
(466 |
) |
|
|
(0.11 |
) |
% |
|
$ |
(1,028 |
) |
|
|
(0.24 |
) |
% |
| Income producing RE |
|
1,785 |
|
|
|
0.29 |
|
|
|
4,548 |
|
|
|
0.86 |
|
|
|
270 |
|
|
|
0.05 |
|
|
| Commercial & industrial |
|
(105 |
) |
|
|
(0.01 |
) |
|
|
(37 |
) |
|
|
(0.01 |
) |
|
|
7,185 |
|
|
|
2.30 |
|
|
| Commercial construction |
|
(171 |
) |
|
|
(0.07 |
) |
|
|
122 |
|
|
|
0.05 |
|
|
|
(141 |
) |
|
|
(0.06 |
) |
|
| Equipment financing |
|
1,993 |
|
|
|
0.93 |
|
|
|
1,665 |
|
|
|
0.87 |
|
|
|
1,507 |
|
|
|
0.81 |
|
|
| Total commercial |
|
2,777 |
|
|
|
0.12 |
|
|
|
5,832 |
|
|
|
0.31 |
|
|
|
7,793 |
|
|
|
0.47 |
|
|
| Residential mortgage |
|
(35 |
) |
|
|
(0.01 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
| Home equity lines of credit |
|
(125 |
) |
|
|
(0.07 |
) |
|
|
(98 |
) |
|
|
(0.06 |
) |
|
|
(83 |
) |
|
|
(0.05 |
) |
|
| Residential construction |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(0.01 |
) |
|
|
(12 |
) |
|
|
(0.02 |
) |
|
| Consumer |
|
(79 |
) |
|
|
(0.22 |
) |
|
|
426 |
|
|
|
1.39 |
|
|
|
407 |
|
|
|
1.30 |
|
|
| Total |
|
$ |
2,538 |
|
|
|
0.09 |
|
|
|
$ |
6,149 |
|
|
|
0.25 |
|
|
|
$ |
8,114 |
|
|
|
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Balance Sheets (Unaudited) |
| (in thousands, except share and per share data) |
|
September 30,
2020 |
|
December 31,
2019 |
| ASSETS |
|
|
|
|
| Cash and due from banks |
|
$ |
122,048 |
|
|
$ |
125,844 |
|
| Interest-bearing deposits in banks |
|
923,591 |
|
|
389,362 |
|
| Cash and cash equivalents |
|
1,045,639 |
|
|
515,206 |
|
| Debt securities available-for-sale |
|
2,690,448 |
|
|
2,274,581 |
|
| Debt securities held-to-maturity (fair value $413,820 and $287,904) |
|
398,373 |
|
|
283,533 |
|
| Loans held for sale at fair value |
|
128,587 |
|
|
58,484 |
|
| Loans and leases held for investment |
|
11,798,910 |
|
|
8,812,553 |
|
| Less allowance for credit losses - loans and leases |
|
(134,256 |
) |
|
(62,089 |
) |
| Loans and leases, net |
|
11,664,654 |
|
|
8,750,464 |
|
| Premises and equipment, net |
|
211,885 |
|
|
215,976 |
|
| Bank owned life insurance |
|
201,515 |
|
|
202,664 |
|
| Accrued interest receivable |
|
48,091 |
|
|
32,660 |
|
| Net deferred tax asset |
|
39,818 |
|
|
34,059 |
|
| Derivative financial instruments |
|
103,388 |
|
|
35,007 |
|
| Goodwill and other intangible assets, net |
|
384,074 |
|
|
342,247 |
|
| Other assets |
|
236,405 |
|
|
171,135 |
|
| Total assets |
|
$ |
17,152,877 |
|
|
$ |
12,916,016 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| Liabilities: |
|
|
|
|
| Deposits: |
|
|
|
|
| Noninterest-bearing demand |
|
$ |
5,227,170 |
|
|
$ |
3,477,979 |
|
| NOW and interest-bearing demand |
|
2,989,455 |
|
|
2,461,895 |
|
| Money market |
|
3,399,793 |
|
|
2,230,628 |
|
| Savings |
|
891,147 |
|
|
706,467 |
|
| Time |
|
1,819,586 |
|
|
1,859,574 |
|
| Brokered |
|
276,225 |
|
|
160,701 |
|
| Total deposits |
|
14,603,376 |
|
|
10,897,244 |
|
| Long-term debt |
|
326,703 |
|
|
212,664 |
|
| Derivative financial instruments |
|
33,519 |
|
|
15,516 |
|
| Accrued expenses and other liabilities |
|
222,024 |
|
|
154,900 |
|
| Total liabilities |
|
15,185,622 |
|
|
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 |
|
96,422 |
|
|
— |
|
Common stock, $1 par value; 150,000,000 shares authorized;
86,611,114 and 79,013,729 shares issued and outstanding |
|
86,611 |
|
|
79,014 |
|
| Common stock issuable; 590,521 and 664,640 shares |
|
10,632 |
|
|
11,491 |
|
| Capital surplus |
|
1,637,467 |
|
|
1,496,641 |
|
| Retained earnings |
|
94,938 |
|
|
40,152 |
|
| Accumulated other comprehensive income |
|
41,185 |
|
|
8,394 |
|
| Total shareholders' equity |
|
1,967,255 |
|
|
1,635,692 |
|
| Total liabilities and shareholders' equity |
|
$ |
17,152,877 |
|
|
$ |
12,916,016 |
|
|
|
|
|
|
|
|
|
|
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Statements of Income (Unaudited) |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
| (in thousands, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| Interest revenue: |
|
|
|
|
|
|
|
|
|
| Loans, including fees |
|
$ |
126,936 |
|
|
$ |
122,645 |
|
|
$ |
352,861 |
|
|
$ |
357,575 |
|
|
| Investment securities, including tax exempt of $1,895, $1,118, $4,988 and $3,409 |
|
14,558 |
|
|
17,744 |
|
|
47,567 |
|
|
57,638 |
|
|
| Deposits in banks and short-term investments |
|
279 |
|
|
226 |
|
|
1,497 |
|
|
1,074 |
|
|
| Total interest revenue |
|
141,773 |
|
|
140,615 |
|
|
401,925 |
|
|
416,287 |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
1,634 |
|
|
3,214 |
|
|
6,240 |
|
|
10,283 |
|
|
| Money market |
|
3,017 |
|
|
5,126 |
|
|
10,969 |
|
|
14,100 |
|
|
| Savings |
|
47 |
|
|
41 |
|
|
121 |
|
|
115 |
|
|
| Time |
|
4,300 |
|
|
8,732 |
|
|
18,014 |
|
|
25,687 |
|
|
| Deposits |
|
8,998 |
|
|
17,113 |
|
|
35,344 |
|
|
50,185 |
|
|
| Short-term borrowings |
|
2 |
|
|
429 |
|
|
3 |
|
|
838 |
|
|
| Federal Home Loan Bank advances |
|
27 |
|
|
521 |
|
|
28 |
|
|
2,695 |
|
|
| Long-term debt |
|
4,292 |
|
|
3,214 |
|
|
10,186 |
|
|
9,813 |
|
|
| Total interest expense |
|
13,319 |
|
|
21,277 |
|
|
45,561 |
|
|
63,531 |
|
|
| Net interest revenue |
|
128,454 |
|
|
119,338 |
|
|
356,364 |
|
|
352,756 |
|
|
| Provision for credit losses |
|
21,793 |
|
|
3,100 |
|
|
77,527 |
|
|
9,650 |
|
|
| Net interest revenue after provision for credit losses |
|
106,661 |
|
|
116,238 |
|
|
278,837 |
|
|
343,106 |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
| Service charges and fees |
|
8,260 |
|
|
9,916 |
|
|
23,893 |
|
|
27,429 |
|
|
| Mortgage loan gains and other related fees |
|
25,144 |
|
|
8,658 |
|
|
57,113 |
|
|
17,750 |
|
|
| Brokerage and wealth management fees |
|
3,055 |
|
|
1,699 |
|
|
6,019 |
|
|
4,624 |
|
|
| Gains from sales of other loans, net |
|
1,175 |
|
|
1,639 |
|
|
3,889 |
|
|
4,412 |
|
|
| Securities gains (losses), net |
|
746 |
|
|
— |
|
|
746 |
|
|
(118 |
) |
|
| Other |
|
10,302 |
|
|
7,119 |
|
|
23,074 |
|
|
20,433 |
|
|
| Total noninterest income |
|
48,682 |
|
|
29,031 |
|
|
114,734 |
|
|
74,530 |
|
|
| Total revenue |
|
155,343 |
|
|
145,269 |
|
|
393,571 |
|
|
417,636 |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expenses: |
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
59,067 |
|
|
50,501 |
|
|
162,236 |
|
|
146,161 |
|
|
| Communications and equipment |
|
6,960 |
|
|
6,223 |
|
|
19,462 |
|
|
18,233 |
|
|
| Occupancy |
|
7,050 |
|
|
5,921 |
|
|
18,709 |
|
|
17,424 |
|
|
| Advertising and public relations |
|
1,778 |
|
|
1,374 |
|
|
5,312 |
|
|
4,256 |
|
|
| Postage, printing and supplies |
|
1,703 |
|
|
1,618 |
|
|
4,986 |
|
|
4,733 |
|
|
| Professional fees |
|
5,083 |
|
|
4,715 |
|
|
14,003 |
|
|
11,930 |
|
|
| Lending and loan servicing expense |
|
3,043 |
|
|
2,556 |
|
|
8,525 |
|
|
7,509 |
|
|
| Outside services - electronic banking |
|
1,888 |
|
|
1,934 |
|
|
5,516 |
|
|
5,101 |
|
|
| FDIC assessments and other regulatory charges |
|
1,346 |
|
|
314 |
|
|
4,388 |
|
|
3,571 |
|
|
| Amortization of intangibles |
|
1,099 |
|
|
1,210 |
|
|
3,126 |
|
|
3,845 |
|
|
| Merger-related and other charges |
|
3,361 |
|
|
2,541 |
|
|
4,566 |
|
|
6,981 |
|
|
| Other |
|
3,603 |
|
|
4,017 |
|
|
10,670 |
|
|
11,077 |
|
|
| Total noninterest expenses |
|
95,981 |
|
|
82,924 |
|
|
261,499 |
|
|
240,821 |
|
|
| Net income before income taxes |
|
59,362 |
|
|
62,345 |
|
|
132,072 |
|
|
176,815 |
|
|
| Income tax expense |
|
11,755 |
|
|
13,983 |
|
|
27,485 |
|
|
40,106 |
|
|
| Net income |
|
47,607 |
|
|
48,362 |
|
|
104,587 |
|
|
136,709 |
|
|
| Preferred stock dividends |
|
1,814 |
|
|
— |
|
|
1,814 |
|
|
— |
|
|
| Dividends and undistributed earnings allocated to unvested shares |
|
356 |
|
|
351 |
|
|
779 |
|
|
982 |
|
|
| Net income available to common shareholders |
|
$ |
45,437 |
|
|
$ |
48,011 |
|
|
$ |
101,994 |
|
|
$ |
135,727 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share: |
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.52 |
|
|
$ |
0.60 |
|
|
$ |
1.25 |
|
|
$ |
1.70 |
|
|
| Diluted |
|
0.52 |
|
|
0.60 |
|
|
1.25 |
|
|
1.70 |
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
87,129 |
|
|
79,663 |
|
|
81,815 |
|
|
79,714 |
|
|
| Diluted |
|
87,205 |
|
|
79,667 |
|
|
81,876 |
|
|
79,718 |
|
|
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Three Months Ended September 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) |
|
$ |
11,644,202 |
|
|
$ |
126,342 |
|
|
4.32 |
% |
|
$ |
8,835,585 |
|
|
$ |
122,526 |
|
|
5.50 |
% |
|
| Taxable securities (3) |
|
2,499,649 |
|
|
12,663 |
|
|
2.03 |
|
|
2,379,927 |
|
|
16,626 |
|
|
2.79 |
|
|
| Tax-exempt securities (FTE) (1)(3) |
|
249,959 |
|
|
2,544 |
|
|
4.07 |
|
|
170,027 |
|
|
1,502 |
|
|
3.53 |
|
|
| Federal funds sold and other interest-earning assets |
|
1,321,445 |
|
|
1,132 |
|
|
0.34 |
|
|
182,935 |
|
|
616 |
|
|
1.35 |
|
|
| Total interest-earning assets (FTE) |
|
15,715,255 |
|
|
142,681 |
|
|
3.61 |
|
|
11,568,474 |
|
|
141,270 |
|
|
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
(128,581 |
) |
|
|
|
|
|
(63,474 |
) |
|
|
|
|
|
| Cash and due from banks |
|
135,949 |
|
|
|
|
|
|
116,922 |
|
|
|
|
|
|
| Premises and equipment |
|
216,326 |
|
|
|
|
|
|
221,930 |
|
|
|
|
|
|
| Other assets (3) |
|
1,074,529 |
|
|
|
|
|
|
836,951 |
|
|
|
|
|
|
| Total assets |
|
$ |
17,013,478 |
|
|
|
|
|
|
$ |
12,680,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
$ |
2,890,735 |
|
|
1,634 |
|
|
0.22 |
|
|
$ |
2,123,910 |
|
|
3,214 |
|
|
0.60 |
|
|
| Money market |
|
3,501,781 |
|
|
3,017 |
|
|
0.34 |
|
|
2,277,162 |
|
|
5,126 |
|
|
0.89 |
|
|
| Savings |
|
864,849 |
|
|
47 |
|
|
0.02 |
|
|
695,297 |
|
|
41 |
|
|
0.02 |
|
|
| Time |
|
1,933,764 |
|
|
4,127 |
|
|
0.85 |
|
|
1,879,801 |
|
|
8,053 |
|
|
1.70 |
|
|
| Brokered time deposits |
|
96,198 |
|
|
173 |
|
|
0.72 |
|
|
102,078 |
|
|
679 |
|
|
2.64 |
|
|
| Total interest-bearing deposits |
|
9,287,327 |
|
|
8,998 |
|
|
0.39 |
|
|
7,078,248 |
|
|
17,113 |
|
|
0.96 |
|
|
| Federal funds purchased and other borrowings |
|
4,405 |
|
|
2 |
|
|
0.18 |
|
|
73,733 |
|
|
429 |
|
|
2.31 |
|
|
| Federal Home Loan Bank advances |
|
2,818 |
|
|
27 |
|
|
3.81 |
|
|
88,261 |
|
|
521 |
|
|
2.34 |
|
|
| Long-term debt |
|
327,017 |
|
|
4,292 |
|
|
5.22 |
|
|
243,935 |
|
|
3,214 |
|
|
5.23 |
|
|
| Total borrowed funds |
|
334,240 |
|
|
4,321 |
|
|
5.14 |
|
|
405,929 |
|
|
4,164 |
|
|
4.07 |
|
|
| Total interest-bearing liabilities |
|
9,621,567 |
|
|
13,319 |
|
|
0.55 |
|
|
7,484,177 |
|
|
21,277 |
|
|
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
5,172,999 |
|
|
|
|
|
|
3,453,174 |
|
|
|
|
|
|
| Other liabilities |
|
270,451 |
|
|
|
|
|
|
155,107 |
|
|
|
|
|
|
| Total liabilities |
|
15,065,017 |
|
|
|
|
|
|
11,092,458 |
|
|
|
|
|
|
| Shareholders' equity |
|
1,948,461 |
|
|
|
|
|
|
1,588,345 |
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
$ |
17,013,478 |
|
|
|
|
|
|
$ |
12,680,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest revenue (FTE) |
|
|
|
$ |
129,362 |
|
|
|
|
|
|
$ |
119,993 |
|
|
|
|
| Net interest-rate spread (FTE) |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.72 |
% |
|
| Net interest margin (FTE) (4) |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
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 $77.0 million in 2020 and unrealized gains of $35.1 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 Nine Months Ended September 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) |
|
$ |
10,087,630 |
|
|
$ |
351,536 |
|
|
4.65 |
% |
|
$ |
8,646,622 |
|
|
$ |
357,541 |
|
|
5.53 |
% |
|
| Taxable securities (3) |
|
2,362,674 |
|
|
42,579 |
|
|
2.40 |
|
|
2,532,070 |
|
|
54,229 |
|
|
2.86 |
|
|
| Tax-exempt securities (FTE) (1)(3) |
|
197,231 |
|
|
6,699 |
|
|
4.53 |
|
|
168,787 |
|
|
4,579 |
|
|
3.62 |
|
|
| Federal funds sold and other interest-earning assets |
|
850,722 |
|
|
3,621 |
|
|
0.57 |
|
|
186,402 |
|
|
1,913 |
|
|
1.37 |
|
|
| Total interest-earning assets (FTE) |
|
13,498,257 |
|
|
404,435 |
|
|
4.00 |
|
|
11,533,881 |
|
|
418,262 |
|
|
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
(96,235 |
) |
|
|
|
|
|
(62,664 |
) |
|
|
|
|
|
| Cash and due from banks |
|
134,354 |
|
|
|
|
|
|
121,889 |
|
|
|
|
|
|
| Premises and equipment |
|
217,551 |
|
|
|
|
|
|
220,872 |
|
|
|
|
|
|
| Other assets (3) |
|
964,511 |
|
|
|
|
|
|
785,862 |
|
|
|
|
|
|
| Total assets |
|
$ |
14,718,438 |
|
|
|
|
|
|
$ |
12,599,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and interest-bearing demand |
|
$ |
2,583,911 |
|
|
6,240 |
|
|
0.32 |
|
|
$ |
2,199,607 |
|
|
10,283 |
|
|
0.63 |
|
|
| Money market |
|
2,797,350 |
|
|
10,969 |
|
|
0.52 |
|
|
2,187,822 |
|
|
14,100 |
|
|
0.86 |
|
|
| Savings |
|
788,681 |
|
|
121 |
|
|
0.02 |
|
|
685,167 |
|
|
115 |
|
|
0.02 |
|
|
| Time |
|
1,860,597 |
|
|
17,435 |
|
|
1.25 |
|
|
1,761,374 |
|
|
20,338 |
|
|
1.54 |
|
|
| Brokered time deposits |
|
102,502 |
|
|
579 |
|
|
0.75 |
|
|
292,835 |
|
|
5,349 |
|
|
2.44 |
|
|
| Total interest-bearing deposits |
|
8,133,041 |
|
|
35,344 |
|
|
0.58 |
|
|
7,126,805 |
|
|
50,185 |
|
|
0.94 |
|
|
| Federal funds purchased and other borrowings |
|
1,611 |
|
|
3 |
|
|
0.25 |
|
|
44,898 |
|
|
838 |
|
|
2.50 |
|
|
| Federal Home Loan Bank advances |
|
1,001 |
|
|
28 |
|
|
3.74 |
|
|
142,876 |
|
|
2,695 |
|
|
2.52 |
|
|
| Long-term debt |
|
256,218 |
|
|
10,186 |
|
|
5.31 |
|
|
252,686 |
|
|
9,813 |
|
|
5.19 |
|
|
| Total borrowed funds |
|
258,830 |
|
|
10,217 |
|
|
5.27 |
|
|
440,460 |
|
|
13,346 |
|
|
4.05 |
|
|
| Total interest-bearing liabilities |
|
8,391,871 |
|
|
45,561 |
|
|
0.73 |
|
|
7,567,265 |
|
|
63,531 |
|
|
1.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
4,356,484 |
|
|
|
|
|
|
3,335,450 |
|
|
|
|
|
|
| Other liabilities |
|
206,904 |
|
|
|
|
|
|
164,350 |
|
|
|
|
|
|
| Total liabilities |
|
12,955,259 |
|
|
|
|
|
|
11,067,065 |
|
|
|
|
|
|
| Shareholders' equity |
|
1,763,179 |
|
|
|
|
|
|
1,532,775 |
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
$ |
14,718,438 |
|
|
|
|
|
|
$ |
12,599,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest revenue (FTE) |
|
|
|
$ |
358,874 |
|
|
|
|
|
|
$ |
354,731 |
|
|
|
|
| Net interest-rate spread (FTE) |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.73 |
% |
|
| Net interest margin (FTE) (4) |
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
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 $65.5 million in 2020 and unrealized gains of $4.94 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 $17.2 billion in assets, and 163 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee. 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, 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 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
