United Community Banks, Inc. Reports Fourth Quarter Results

EPS of $0.61, Return on Assets of 1.50% and Return on Equity of 12.07%

GREENVILLE, S.C., Jan. 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, including strong year-over-year loan and deposit growth, operating efficiency and asset quality. Diluted earnings per share were $0.61, an increase of $0.05 or 9% from a year ago. Excluding a nominal amount of merger-related and other charges, diluted operating earnings per share were also $0.61, up 7% over last year. United’s return on assets was 1.50% and its return on common equity was 12.1% for the quarter. On an operating basis, United’s return on assets was also 1.50% and its return on tangible common equity was 15.5%.

During the quarter, the company sold its remaining investment in its indirect auto portfolio, completing its exit from that business.  Excluding indirect auto, loans grew at a 2% annualized rate in the fourth quarter. United's net interest margin decreased as expected due to falling interest rates. Other items that impacted the net interest margin included seasonally higher average public deposits invested at lower yielding overnight rates and lower purchased loan accretion when compared to previous quarters. Core transaction deposits remained stable and total deposits grew by $140 million.

For the full year of 2019, United's return on assets increased 11 basis points to 1.46% and EPS increased by 12%. Operating return on assets increased 11 basis points to 1.51% and operating EPS increased 11%, as the company continued to execute on its plans to deliver top quartile performance.  2019 saw strong operating leverage, resulting in a company best efficiency ratio of 55.8% and an operating efficiency ratio of 54.5%.

“Our fourth quarter caps off what has been an outstanding year for United.  Our team continued delivering best in class customer service, which has led to the achievement of our top quartile performance goals,” said Lynn Harton, Chairman and CEO of United. “We are proud and honored that United was named one of the 'Best Banks to Work For' by American Banker for the third year in a row, as well as one of the 'World’s Best Banks in 2019' by Forbes.  These accolades are totally due to the passion and caring of our 2,341 employees and their efforts to build a great company where they can develop fulfilling careers, reach ambitious financial goals and serve United's customers and communities at the highest level.  We look forward to continued success in 2020.”

2019 Highlights:

• 2019 earnings per diluted share were $2.31, a 12% increase over 2018
  -- Excluding merger-related and other charges, operating earnings per diluted share for 2019 were $2.38 compared to $2.14 in 2018, an increase of 11%
• Return on assets was 1.46% in 2019, an increase of 11 basis points from 2018
  -- Excluding merger-related and other charges, operating return on assets was 1.51%, an increase of 11 basis points from 2018
• Efficiency ratio of 55.8% in 2019 improved 154 basis points as compared to 2018
  -- Excluding merger-related and other charges, efficiency ratio of 54.5% improved 144 basis points as compared to 2018
• End of period loans grew $430 million in 2019, up 5% over December 31, 2018
• Common Equity Tier 1 ratio was 13.0% at December 31, 2019, compared to 12.2% at December 31, 2018
• Dividends of $0.68 per share were declared in 2019, up 17% over 2018
• United completed the acquisition of First Madison Bank & Trust on May 1, 2019
• Share repurchases of 500,495 shares were accomplished during the year at an average price of $26.01

Fourth Quarter 2019 Financial Highlights:

• EPS of $0.61, representing growth of 9% over last year, or 7% on an operating basis
• Return on assets of 1.50%
• Return on common equity of 12.1%
• Operating return on tangible common equity of 15.5%, excluding merger-related and other charges
• End of period total loans fell by $90 million, but excluding indirect auto, end of period loans grew at a 2% annualized pace
• Loan production was strong at $854 million, but was offset by higher than usual paydowns
• Despite weaker seasonality, our mortgage business remained strong with loan locks of $411 million, compared to $251 million a year ago due to a favorable rate environment and the impact of new hires
• Net interest margin of 3.93% was down 19 basis points compared to the third quarter and down 4 basis points compared to a year ago
• Efficiency ratio of 54.9%
• Net charge-offs of 18 basis points, up six basis points from last quarter and remaining at historically low levels
• Nonperforming assets of 0.28% of total assets, compared with 0.24% at September 30, 2019 and 0.20% at December 31, 2018
• Unusual items in the quarter netted to a slight gain, with a $1.6 million bank owned life insurance gain offset by $0.9 million in securities losses.  Additionally, our indirect portfolio sales resulted in a $0.7 million loss offset by a $0.5 million indirect portfolio loan loss reserve release

Conference Call
United will hold a conference call, Wednesday, January 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 [phone] and use the conference number 7081477. 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.

For more information:
Jefferson Harralson
Chief Financial Officer
[phone]
[e-mail]

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
		2019																2018				Fourth Quarter 2019 - 2018 Change			For the Twelve Months Ended December 31,								YTD 2019 - 2018 Change
(in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter							2019				2018
INCOME SUMMARY
Interest revenue		$	136,419			$	140,615			$	139,156			$	136,516			$	133,854						$	552,706			$	500,080
Interest expense		19,781				21,277				21,372				20,882				18,975							83,312				61,330
Net interest revenue		116,638				119,338				117,784				115,634				114,879				2	%		469,394				438,750				7	%
Provision for credit losses		3,500				3,100				3,250				3,300				2,100							13,150				9,500
Noninterest income		30,183				29,031				24,531				20,968				23,045				31			104,713				92,961				13
Total revenue		143,321				145,269				139,065				133,302				135,824				6			560,957				522,211				7
Expenses		81,424				82,924				81,813				76,084				78,242				4			322,245				306,285				5
Income before income tax expense		61,897				62,345				57,252				57,218				57,582							238,712				215,926
Income tax expense		12,885				13,983				13,167				12,956				12,445							52,991				49,815
Net income		49,012				48,362				44,085				44,262				45,137							185,721				166,111
Merger-related and other charges		(74		)		2,605				4,087				739				1,234							7,357				7,345
Income tax benefit of merger-related and other charges		17				(600		)		(940		)		(172		)		(604		)					(1,695		)		(1,494		)
Net income - operating (1)		$	48,955			$	50,367			$	47,232			$	44,829			$	45,767			7			$	191,383			$	171,962			11
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.61			$	0.60			$	0.55			$	0.55			$	0.56			9			$	2.31			$	2.07			12
Diluted net income - operating (1)		0.61				0.63				0.59				0.56				0.57				7			2.38				2.14				11
Cash dividends declared		0.18				0.17				0.17				0.16				0.16				13			0.68				0.58				17
Book value		20.53				20.16				19.65				18.93				18.24				13			20.53				18.24				13
Tangible book value (3)		16.28				15.90				15.38				14.93				14.24				14			16.28				14.24				14
Key performance ratios:
Return on common equity - GAAP (2)(4)		12.07		%		12.16		%		11.45		%		11.85		%		12.08		%					11.89		%		11.60		%
Return on common equity - operating (1)(2)(4)		12.06				12.67				12.27				12.00				12.25							12.25				12.01
Return on tangible common equity - operating (1)(2)(3)(4)		15.49				16.38				15.88				15.46				15.88							15.81				15.69
Return on assets - GAAP (4)		1.50				1.51				1.40				1.44				1.43							1.46				1.35
Return on assets - operating (1)(4)		1.50				1.58				1.50				1.45				1.45							1.51				1.40
Net interest margin (fully taxable equivalent) (4)		3.93				4.12				4.12				4.10				3.97							4.07				3.91
Efficiency ratio - GAAP		54.87				55.64				57.28				55.32				56.73							55.77				57.31
Efficiency ratio - operating (1)		54.92				53.90				54.42				54.78				55.83							54.50				55.94
Equity to total assets		12.66				12.53				12.25				12.06				11.59							12.66				11.59
Tangible common equity to tangible assets (3)		10.32				10.16				9.86				9.76				9.29							10.32				9.29
ASSET QUALITY
Nonperforming loans		$	35,341			$	30,832			$	26,597			$	23,624			$	23,778			49			$	35,341			$	23,778			49
Foreclosed properties		476				102				75				1,127				1,305				(64	)		476				1,305				(64	)
Total nonperforming assets ("NPAs")		35,817				30,934				26,672				24,751				25,083				43			35,817				25,083				43
Allowance for loan losses		62,089				62,514				62,204				61,642				61,203				1			62,089				61,203				1
Net charge-offs		3,925				2,723				2,438				3,130				1,787				120			12,216				6,113				100
Allowance for loan losses to loans		0.70		%		0.70		%		0.70		%		0.73		%		0.73		%					0.70		%		0.73		%
Net charge-offs to average loans (4)		0.18				0.12				0.11				0.15				0.09							0.14				0.07
NPAs to loans and foreclosed properties		0.41				0.35				0.30				0.29				0.30							0.41				0.30
NPAs to total assets		0.28				0.24				0.21				0.20				0.20							0.28				0.20
AVERAGE BALANCES ($ in millions)
Loans		$	8,890			$	8,836			$	8,670			$	8,430			$	8,306			7			$	8,708			$	8,170			7
Investment securities		2,486				2,550				2,674				2,883				3,004				(17	)		2,647				2,899				(9	)
Earning assets		11,832				11,568				11,534				11,498				11,534				3			11,609				11,282				3
Total assets		12,946				12,681				12,608				12,509				12,505				4			12,687				12,284				3
Deposits		10,924				10,531				10,493				10,361				10,306				6			10,579				10,000				6
Shareholders’ equity		1,623				1,588				1,531				1,478				1,420				14			1,556				1,380				13
Common shares - basic (thousands)		79,659				79,663				79,673				79,807				79,884				—			79,700				79,662				—
Common shares - diluted (thousands)		79,669				79,667				79,678				79,813				79,890				—			79,708				79,671				—
AT PERIOD END ($ in millions)
Loans		$	8,813			$	8,903			$	8,838			$	8,493			$	8,383			5			$	8,813			$	8,383			5
Investment securities		2,559				2,515				2,620				2,720				2,903				(12	)		2,559				2,903				(12	)
Total assets		12,916				12,809				12,779				12,506				12,573				3			12,916				12,573				3
Deposits		10,897				10,757				10,591				10,534				10,535				3			10,897				10,535				3
Shareholders’ equity		1,636				1,605				1,566				1,508				1,458				12			1,636				1,458				12
Common shares outstanding (thousands)		79,014				78,974				79,075				79,035				79,234				—			79,014				79,234				—

⁽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.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data)		2019				2018				2017				2016				2015
INCOME SUMMARY
Interest revenue		$	552,706			$	500,080			$	389,720			$	335,020			$	278,532
Interest expense		83,312				61,330				33,735				25,236				21,109
Net interest revenue		469,394				438,750				355,985				309,784				257,423
Provision for credit losses		13,150				9,500				3,800				(800		)		3,700
Noninterest income		104,713				92,961				88,260				93,697				72,529
Total revenue		560,957				522,211				440,445				404,281				326,252
Expenses		322,245				306,285				267,611				241,289				211,238
Income before income tax expense		238,712				215,926				172,834				162,992				115,014
Income tax expense		52,991				49,815				105,013				62,336				43,436
Net income		185,721				166,111				67,821				100,656				71,578
Merger-related and other charges		7,357				7,345				14,662				8,122				17,995
Income tax benefit of merger-related and other charges		(1,695		)		(1,494		)		(3,745		)		(3,074		)		(6,388		)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act		—				—				38,199				—				—
Impairment of deferred tax asset on cancelled non-qualified stock options		—				—				—				976				—
Release of disproportionate tax effects lodged in OCI		—				—				3,400				—				—
Net income - operating (1)		$	191,383			$	171,962			$	120,337			$	106,680			$	83,185
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	2.31			$	2.07			$	0.92			$	1.40			$	1.09
Diluted net income - operating (1)		2.38				2.14				1.63				1.48				1.27
Cash dividends declared		0.68				0.58				0.38				0.30				0.22
Book value		20.53				18.24				16.67				15.06				14.02
Tangible book value (3)		16.28				14.24				13.65				12.95				12.06
Key performance ratios:
Return on common equity - GAAP (2)		11.89		%		11.60		%		5.67		%		9.41		%		8.15		%
Return on common equity - operating (1)(2)		12.25				12.01				10.07				9.98				9.48
Return on tangible common equity - operating (1)(2)(3)		15.81				15.69				12.02				11.86				10.24
Return on assets - GAAP		1.46				1.35				0.62				1.00				0.85
Return on assets - operating (1)		1.51				1.40				1.09				1.06				0.98
Net interest margin (fully taxable equivalent)		4.07				3.91				3.52				3.36				3.30
Efficiency ratio - GAAP		55.77				57.31				59.95				59.80				63.96
Efficiency ratio - operating (1)		54.50				55.94				56.67				57.78				58.51
Equity to total assets		12.66				11.59				10.94				10.05				10.58
Tangible common equity to tangible assets (3)		10.32				9.29				9.14				8.77				9.15
ASSET QUALITY
Nonperforming loans		$	35,341			$	23,778			$	23,658			$	21,539			$	22,653
Foreclosed properties		476				1,305				3,234				7,949				4,883
Total nonperforming assets (NPAs)		35,817				25,083				26,892				29,488				27,536
Allowance for loan losses		62,089				61,203				58,914				61,422				68,448
Net charge-offs		12,216				6,113				5,998				6,766				6,259
Allowance for loan losses to loans		0.70		%		0.73		%		0.76		%		0.89		%		1.14		%
Net charge-offs to average loans		0.14				0.07				0.08				0.11				0.12
NPAs to loans and foreclosed properties		0.41				0.30				0.35				0.43				0.46
NPAs to total assets		0.28				0.20				0.23				0.28				0.29
AVERAGE BALANCES ($ in millions)
Loans		$	8,708			$	8,170			$	7,150			$	6,413			$	5,298
Investment securities		2,647				2,899				2,847				2,691				2,368
Earning assets		11,609				11,282				10,162				9,257				7,834
Total assets		12,687				12,284				11,015				10,054				8,462
Deposits		10,579				10,000				8,950				8,177				7,055
Shareholders’ equity		1,556				1,380				1,180				1,059				869
Common shares - basic (thousands)		79,700				79,662				73,247				71,910				65,488
Common shares - diluted (thousands)		79,708				79,671				73,259				71,915				65,492
AT PERIOD END ($ in millions)
Loans		$	8,813			$	8,383			$	7,736			$	6,921			$	5,995
Investment securities		2,559				2,903				2,937				2,762				2,656
Total assets		12,916				12,573				11,915				10,709				9,616
Deposits		10,897				10,535				9,808				8,638				7,873
Shareholders’ equity		1,636				1,458				1,303				1,076				1,018
Common shares outstanding (thousands)		79,014				79,234				77,580				70,899				71,484

⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United’s deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property.
⁽²⁾ Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information- Quarterly
		2019																2018
(in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First  Quarter				Fourth Quarter
Expense reconciliation
Expenses (GAAP)		$	81,424			$	82,924			$	81,813			$	76,084			$	78,242
Merger-related and other charges		74				(2,605		)		(4,087		)		(739		)		(1,234		)
Expenses - operating		$	81,498			$	80,319			$	77,726			$	75,345			$	77,008
Net income reconciliation
Net income (GAAP)		$	49,012			$	48,362			$	44,085			$	44,262			$	45,137
Merger-related and other charges		(74		)		2,605				4,087				739				1,234
Income tax benefit of merger-related and other charges		17				(600		)		(940		)		(172		)		(604		)
Net income - operating		$	48,955			$	50,367			$	47,232			$	44,829			$	45,767
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.61			$	0.60			$	0.55			$	0.55			$	0.56
Merger-related and other charges		—				0.03				0.04				0.01				0.01
Diluted income per common share - operating		$	0.61			$	0.63			$	0.59			$	0.56			$	0.57
Book value per common share reconciliation
Book value per common share (GAAP)		$	20.53			$	20.16			$	19.65			$	18.93			$	18.24
Effect of goodwill and other intangibles		(4.25		)		(4.26		)		(4.27		)		(4.00		)		(4.00		)
Tangible book value per common share		$	16.28			$	15.90			$	15.38			$	14.93			$	14.24
Return on tangible common equity reconciliation
Return on common equity (GAAP)		12.07		%		12.16		%		11.45		%		11.85		%		12.08		%
Merger-related and other charges		(0.01		)		0.51				0.82				0.15				0.17
Return on common equity - operating		12.06				12.67				12.27				12.00				12.25
Effect of goodwill and other intangibles		3.43				3.71				3.61				3.46				3.63
Return on tangible common equity - operating		15.49		%		16.38		%		15.88		%		15.46		%		15.88		%
Return on assets reconciliation
Return on assets (GAAP)		1.50		%		1.51		%		1.40		%		1.44		%		1.43		%
Merger-related and other charges		—				0.07				0.10				0.01				0.02
Return on assets - operating		1.50		%		1.58		%		1.50		%		1.45		%		1.45		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		54.87		%		55.64		%		57.28		%		55.32		%		56.73		%
Merger-related and other charges		0.05				(1.74		)		(2.86		)		(0.54		)		(0.90		)
Efficiency ratio - operating		54.92		%		53.90		%		54.42		%		54.78		%		55.83		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.66		%		12.53		%		12.25		%		12.06		%		11.59		%
Effect of goodwill and other intangibles		(2.34		)		(2.37		)		(2.39		)		(2.30		)		(2.30		)
Tangible common equity to tangible assets		10.32		%		10.16		%		9.86		%		9.76		%		9.29		%

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information- Annual
		For the Twelve Months Ended December 31,
(in thousands, except per share data)		2019				2018				2017				2016				2015
Expense reconciliation
Expenses (GAAP)		$	322,245			$	306,285			$	267,611			$	241,289			$	211,238
Merger-related and other charges		(7,357		)		(7,345		)		(14,662		)		(8,122		)		(17,995		)
Expenses - operating		$	314,888			$	298,940			$	252,949			$	233,167			$	193,243
Net income reconciliation
Net income (GAAP)		$	185,721			$	166,111			$	67,821			$	100,656			$	71,578
Merger-related and other charges		7,357				7,345				14,662				8,122				17,995
Income tax benefit of merger-related and other charges		(1,695		)		(1,494		)		(3,745		)		(3,074		)		(6,388		)
Impact of tax reform on remeasurement of deferred tax asset		—				—				38,199				—				—
Impairment of deferred tax asset on canceled non-qualified stock options		—				—				—				976				—
Release of disproportionate tax effects lodged in OCI		—				—				3,400				—				—
Net income - operating		$	191,383			$	171,962			$	120,337			$	106,680			$	83,185
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	2.31			$	2.07			$	0.92			$	1.40			$	1.09
Merger-related and other charges		0.07				0.07				0.14				0.07				0.18
Impact of tax reform on remeasurement of deferred tax asset		—				—				0.52				—				—
Impairment of deferred tax asset on canceled non-qualified stock options		—				—				—				0.01				—
Release of disproportionate tax effects lodged in OCI		—				—				0.05				—				—
Diluted income per common share - operating		$	2.38			$	2.14			$	1.63			$	1.48			$	1.27
Book value per common share reconciliation
Book value per common share (GAAP)		$	20.53			$	18.24			$	16.67			$	15.06			$	14.02
Effect of goodwill and other intangibles		(4.25		)		(4.00		)		(3.02		)		(2.11		)		(1.96		)
Tangible book value per common share		$	16.28			$	14.24			$	13.65			$	12.95			$	12.06
Return on tangible common equity reconciliation
Return on common equity (GAAP)		11.89		%		11.60		%		5.67		%		9.41		%		8.15		%
Merger-related and other charges		0.36				0.41				0.92				0.48				1.33
Impact of tax reform on remeasurement of deferred tax asset		—				—				3.20				—				—
Impairment of deferred tax asset on canceled non-qualified stock options		—				—				—				0.09				—
Release of disproportionate tax effects lodged in OCI		—				—				0.28				—				—
Return on common equity - operating		12.25				12.01				10.07				9.98				9.48
Effect of goodwill and other intangibles		3.56				3.68				1.95				1.88				0.76
Return on tangible common equity - operating		15.81		%		15.69		%		12.02		%		11.86		%		10.24		%
Return on assets reconciliation
Return on assets (GAAP)		1.46		%		1.35		%		0.62		%		1.00		%		0.85		%
Merger-related and other charges		0.05				0.05				0.09				0.05				0.13
Impact of tax reform on remeasurement of deferred tax asset		—				—				0.35				—				—
Impairment of deferred tax asset on canceled non-qualified stock options		—				—				—				0.01				—
Release of disproportionate tax effects lodged in OCI		—				—				0.03				—				—
Return on assets - operating		1.51		%		1.40		%		1.09		%		1.06		%		0.98		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		55.77		%		57.31		%		59.95		%		59.80		%		63.96		%
Merger-related and other charges		(1.27		)		(1.37		)		(3.28		)		(2.02		)		(5.45		)
Efficiency ratio - operating		54.50		%		55.94		%		56.67		%		57.78		%		58.51		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.66		%		11.59		%		10.94		%		10.05		%		10.58		%
Effect of goodwill and other intangibles		(2.34		)		(2.30		)		(1.80		)		(1.28		)		(1.33		)
Effect of preferred equity		—				—				—				—				(0.10		)
Tangible common equity to tangible assets		10.32		%		9.29		%		9.14		%		8.77		%		9.15		%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2019																2018				Linked Quarter Change				Year over Year Change
(in millions)	Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,720			$	1,692			$	1,658			$	1,620			$	1,648			$	28			$	72
Income producing commercial RE	2,008				1,934				1,939				1,867				1,812				74				196
Commercial & industrial	1,221				1,271				1,299				1,284				1,278				(50		)		(57		)
Commercial construction	976				1,001				983				866				796				(25		)		180
Equipment financing	745				729				674				606				565				16				180
Total commercial	6,670				6,627				6,553				6,243				6,099				43				571
Residential mortgage	1,118				1,121				1,108				1,064				1,049				(3		)		69
Home equity lines of credit	661				669				675				684				694				(8		)		(33		)
Residential construction	236				229				219				200				211				7				25
Consumer	128				257				283				302				330				(129		)		(202		)
Total loans	$	8,813			$	8,903			$	8,838			$	8,493			$	8,383			$	(90	)		$	430
LOANS BY MARKET
North Georgia	$	967			$	1,002			$	1,002			$	970			$	981			$	(35	)		$	(14	)
Atlanta	1,762				1,740				1,745				1,524				1,507				22				255
North Carolina	1,156				1,117				1,084				1,074				1,072				39				84
Coastal Georgia	631				611				604				603				588				20				43
Gainesville	246				246				244				243				247				—				(1		)
East Tennessee	421				435				446				458				477				(14		)		(56		)
South Carolina	1,708				1,705				1,674				1,674				1,645				3				63
Commercial Banking Solutions	1,922				1,916				1,884				1,766				1,658				6				264
Indirect auto	—				131				155				181				208				(131		)		(208		)
Total loans	$	8,813			$	8,903			$	8,838			$	8,493			$	8,383			$	(90	)		$	430

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)	2019				2018				2017				2016				2015
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,720			$	1,648			$	1,924			$	1,650			$	1,571
Income producing commercial RE	2,008				1,812				1,595				1,282				1,021
Commercial & industrial	1,221				1,278				1,131				1,070				785
Commercial construction	976				796				712				634				518
Equipment financing	745				565				—				—				—
Total commercial	6,670				6,099				5,362				4,636				3,895
Residential mortgage	1,118				1,049				974				857				764
Home equity lines of credit	661				694				731				655				589
Residential construction	236				211				183				190				176
Consumer	128				330				486				583				571
Total loans	$	8,813			$	8,383			$	7,736			$	6,921			$	5,995
LOANS BY MARKET
North Georgia	$	967			$	981			$	1,019			$	1,097			$	1,125
Atlanta	1,762				1,507				1,510				1,399				1,259
North Carolina	1,156				1,072				1,049				545				549
Coastal Georgia	631				588				630				581				537
Gainesville	246				247				248				248				254
East Tennessee	421				477				475				504				504
South Carolina	1,708				1,645				1,486				1,233				819
Commercial Banking Solutions	1,922				1,658				961				855				492
Indirect auto	—				208				358				459				456
Total loans	$	8,813			$	8,383			$	7,736			$	6,921			$	5,995

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
		2019
(in thousands)		Fourth Quarter				Third Quarter				Second Quarter
NONACCRUAL LOANS
Owner occupied RE		$	10,544			$	8,430			$	8,177
Income producing RE		1,996				2,030				1,331
Commercial & industrial		2,545				2,625				2,366
Commercial construction		2,277				1,894				1,650
Equipment financing		3,141				1,974				2,047
Total commercial		20,503				16,953				15,571
Residential mortgage		10,567				9,475				8,012
Home equity lines of credit		3,173				3,065				1,978
Residential construction		939				597				494
Consumer		159				742				542
Total		$	35,341			$	30,832			$	26,597

		2019
		Fourth Quarter							Third Quarter							Second 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		$	(208	)		(0.05	)%		$	(39	)		(0.01	)%		$	(58	)		(0.01	)%
Income producing RE		95				0.02			431				0.09			241				0.05
Commercial & industrial		1,809				0.58			691				0.21			1,141				0.35
Commercial construction		(140		)		(0.06	)		(247		)		(0.10	)		(162		)		(0.07	)
Equipment financing		1,550				0.84			1,174				0.67			890				0.56
Total commercial		3,106				0.19			2,010				0.12			2,052				0.13
Residential mortgage		89				0.03			158				0.06			(125		)		(0.05	)
Home equity lines of credit		198				0.12			83				0.05			(111		)		(0.07	)
Residential construction		(24		)		(0.04	)		(5		)		(0.01	)		199				0.38
Consumer		556				0.90			477				0.70			423				0.58
Total		$	3,925			0.18			$	2,723			0.12			$	2,438			0.11
(1)  Annualized.

UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)		December 31, 2019				December 31, 2018
ASSETS
Cash and due from banks		$	125,844			$	126,083
Interest-bearing deposits in banks		389,362				201,182
Cash and cash equivalents		515,206				327,265
Debt securities available-for-sale		2,274,581				2,628,467
Debt securities held-to-maturity (fair value $287,904 and $268,803)		283,533				274,407
Loans held for sale, at fair value		58,484				18,935
Loans, net of unearned income		8,812,553				8,383,401
Less allowance for loan losses		(62,089		)		(61,203		)
Loans, net		8,750,464				8,322,198
Premises and equipment, net		215,976				206,140
Bank owned life insurance		202,664				192,616
Accrued interest receivable		32,660				35,413
Net deferred tax asset		34,059				64,224
Derivative financial instruments		35,007				24,705
Goodwill and other intangible assets		342,247				324,072
Other assets		171,135				154,750
Total assets		$	12,916,016			$	12,573,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	3,477,979			$	3,210,220
NOW and interest-bearing demand		2,461,895				2,369,631
Money market		2,230,628				2,002,670
Savings		706,467				669,886
Time		1,859,574				1,598,391
Brokered		160,701				683,715
Total deposits		10,897,244				10,534,513
Federal Home Loan Bank advances		—				160,000
Long-term debt		212,664				267,189
Derivative financial instruments		15,516				26,433
Accrued expenses and other liabilities		154,900				127,503
Total liabilities		11,280,324				11,115,638
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized; 79,013,729 and 79,234,077 shares issued and outstanding		79,014				79,234
Common stock issuable; 664,640 and 674,499 shares		11,491				10,744
Capital surplus		1,496,641				1,499,584
Retained earnings (accumulated deficit)		40,152				(90,419		)
Accumulated other comprehensive income (loss)		8,394				(41,589		)
Total shareholders' equity		1,635,692				1,457,554
Total liabilities and shareholders' equity		$	12,916,016			$	12,573,192

UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
(in thousands, except per share data)		2019				2018				2019				2018
Interest revenue:
Loans, including fees		$	118,464			$	112,087			$	476,039			$	420,383
Investment securities, including tax exempt of $1,155 and $1,140, and $4,564 and $4,189		16,846				21,237				74,484				77,685
Deposits in banks and short-term investments		1,109				530				2,183				2,012
Total interest revenue		136,419				133,854				552,706				500,080
Interest expense:
Deposits:
NOW and interest-bearing demand		3,382				3,166				13,665				7,649
Money market		4,883				3,985				18,983				11,838
Savings		34				33				149				150
Time		8,372				7,006				34,059				19,906
Deposits		16,671				14,190				66,856				39,543
Short-term borrowings		—				340				838				1,112
Federal Home Loan Bank advances		2				794				2,697				6,345
Long-term debt		3,108				3,651				12,921				14,330
Total interest expense		19,781				18,975				83,312				61,330
Net interest revenue		116,638				114,879				469,394				438,750
Provision for credit losses		3,500				2,100				13,150				9,500
Net interest revenue after provision for credit losses		113,138				112,779				456,244				429,250
Noninterest income:
Service charges and fees		9,368				9,166				36,797				35,997
Mortgage loan gains and related fees		9,395				3,082				27,145				19,010
Brokerage fees		1,526				1,593				6,150				5,191
Gains from other loan sales, net		2,455				2,493				6,867				9,277
Securities (losses) gains, net		(903		)		646				(1,021		)		(656		)
Other		8,342				6,065				28,775				24,142
Total noninterest income		30,183				23,045				104,713				92,961
Total revenue		143,321				135,824				560,957				522,211
Noninterest expenses:
Salaries and employee benefits		50,279				45,631				196,440				181,015
Occupancy		5,926				5,842				23,350				22,781
Communications and equipment		6,380				6,206				24,613				21,277
FDIC assessments and other regulatory charges		1,330				1,814				4,901				8,491
Professional fees		5,098				4,105				17,028				15,540
Postage, printing and supplies		1,637				1,520				6,370				6,416
Advertising and public relations		1,914				1,650				6,170				5,991
Amortization of intangibles		1,093				1,420				4,938				6,846
Merger-related and other charges		(74		)		965				6,907				5,414
Other		7,841				9,089				31,528				32,514
Total noninterest expenses		81,424				78,242				322,245				306,285
Net income before income taxes		61,897				57,582				238,712				215,926
Income tax expense		12,885				12,445				52,991				49,815
Net income		$	49,012			$	45,137			$	185,721			$	166,111
Net income available to common shareholders		$	48,617			$	44,801			$	184,346			$	164,927
Net income per common share:
Basic		$	0.61			$	0.56			$	2.31			$	2.07
Diluted		0.61				0.56				2.31				2.07
Weighted average common shares outstanding:
Basic		79,659				79,884				79,700				79,662
Diluted		79,669				79,890				79,708				79,671

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
		2019											2018
(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)		$	8,890,272			$	118,262			5.28	%		$	8,306,270			$	112,020			5.35	%
Taxable securities (3)		2,306,065				15,691				2.72			2,843,085				20,097				2.83
Tax-exempt securities (FTE) (1)(3)		179,744				1,551				3.45			161,284				1,535				3.81
Federal funds sold and other interest-earning assets		456,055				1,586				1.39			222,931				845				1.52
Total interest-earning assets (FTE)		11,832,136				137,090				4.60			11,533,570				134,497				4.63
Noninterest-earning assets:
Allowance for loan losses		(63,601		)									(61,992		)
Cash and due from banks		120,936											125,066
Premises and equipment		219,487											214,590
Other assets (3)		836,586											694,215
Total assets		$	12,945,544										$	12,505,449
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	2,398,396			3,382				0.56			$	2,134,828			3,166				0.59
Money market		2,321,352				4,883				0.83			2,126,840				3,985				0.74
Savings		704,454				34				0.02			675,265				33				0.02
Time		1,880,174				7,975				1.68			1,584,011				4,297				1.08
Brokered time deposits		85,781				397				1.84			490,748				2,709				2.19
Total interest-bearing deposits		7,390,157				16,671				0.89			7,011,692				14,190				0.80
Federal funds purchased and other borrowings		—				—				—			55,095				340				2.45
Federal Home Loan Bank advances		435				2				1.82			140,869				794				2.24
Long-term debt		232,726				3,108				5.30			272,313				3,651				5.32
Total borrowed funds		233,161				3,110				5.29			468,277				4,785				4.05
Total interest-bearing liabilities		7,623,318				19,781				1.03			7,479,969				18,975				1.01
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,533,746											3,294,385
Other liabilities		165,148											311,461
Total liabilities		11,322,212											11,085,815
Shareholders' equity		1,623,332											1,419,634
Total liabilities and shareholders' equity		$	12,945,544										$	12,505,449
Net interest revenue (FTE)						$	117,309										$	115,522
Net interest-rate spread (FTE)										3.57	%										3.62	%
Net interest margin (FTE) (4)										3.93	%										3.97	%

⁽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 $36.0 million in 2019 and unrealized losses of $59.5 million in 2018 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 Twelve Months Ended December 31,
		2019											2018
(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)		$	8,708,035			$	475,803			5.46	%		$	8,170,143			$	420,001			5.14	%
Taxable securities (3)		2,475,102				69,920				2.82			2,745,715				73,496				2.68
Tax-exempt securities (FTE) (1)(3)		171,549				6,130				3.57			152,855				5,641				3.69
Federal funds sold and other interest-earning assets		254,370				3,499				1.38			213,137				2,968				1.39
Total interest-earning assets (FTE)		11,609,056				555,352				4.78			11,281,850				502,106				4.45
Non-interest-earning assets:
Allowance for loan losses		(62,900		)									(61,443		)
Cash and due from banks		121,649											135,345
Premises and equipment		220,523											216,646
Other assets (3)		798,649											711,671
Total assets		$	12,686,977										$	12,284,069
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	2,249,713			13,665				0.61			$	2,107,831			7,649				0.36
Money market		2,221,478				18,983				0.85			2,117,216				11,838				0.56
Savings		690,028				149				0.02			672,735				150				0.02
Time		1,791,319				28,313				1.58			1,547,221				12,585				0.81
Brokered time deposits		240,646				5,746				2.39			347,072				7,321				2.11
Total interest-bearing deposits		7,193,184				66,856				0.93			6,792,075				39,543				0.58
Federal funds purchased and other borrowings		33,504				838				2.50			57,376				1,112				1.94
Federal Home Loan Bank advances		106,973				2,697				2.52			328,871				6,345				1.93
Long-term debt		247,732				12,921				5.22			290,004				14,330				4.94
Total borrowed funds		388,209				16,456				4.24			676,251				21,787				3.22
Total interest-bearing liabilities		7,581,393				83,312				1.10			7,468,326				61,330				0.82
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,385,431											3,207,625
Other liabilities		164,550											227,980
Total liabilities		11,131,374											10,903,931
Shareholders' equity		1,555,603											1,380,138
Total liabilities and shareholders' equity		$	12,686,977										$	12,284,069
Net interest revenue (FTE)						$	472,040										$	440,776
Net interest-rate spread (FTE)										3.68	%										3.63	%
Net interest margin (FTE) (4)										4.07	%										3.91	%

⁽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 $12.8 million in 2019 and unrealized losses of $45.2 million in 2018 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) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $12.9 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. Additional information about UCBI and the Bank can be found at www.ucbi.com.

Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating 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.