GREENVILLE, S.C., Oct. 18, 2022 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) announced today that net income for the third quarter was $81.2 million with pre-tax, pre-provision income of $118.9 million. Diluted earnings per share was $0.74 for the quarter, which represented an increase of $0.13 or 21% from the second quarter of 2022, and a decrease of $0.08 or 10% from the third quarter a year ago. The year-over-year decrease is largely attributable to an $11.0 million provision release in the third quarter of 2021 compared to a $15.4 million provision expense in this quarter. Other highlights of the quarter include 9.4% annualized loan growth, 38 basis points of net interest margin expansion, a reserve build to 1.12% of loans and an improvement in the efficiency ratio to 48.4%, or 47.7% on an operating basis, which excludes the effect of merger-related and other charges.
United's third-quarter return on assets (ROA) was 1.32%, and return on common equity was 11.02%. On an operating basis, United's ROA was 1.34%, and its return on tangible common equity was 15.60%. Also, on an operating basis, United's pre-tax, pre-provision ROA was 1.97% for the quarter.
Total loans increased by $341 million during the quarter, resulting in loan growth of 9.4% on an annualized basis. Deposits decreased by $552 million or 11% annualized. A large portion of this decrease was driven by a seasonal decrease in public deposits, which were down by $278 million. United's cost of deposits increased 11 basis points from the second quarter to 0.19% while the average yield on interest-earning assets was up 49 basis points to 3.83%.
Chairman and CEO Lynn Harton stated, "This was a great quarter on multiple fronts for United as our businesses and our markets continue to provide solid growth opportunities. Loan growth and an expanding net interest margin propelled our pre-tax, pre-provision ROA and our efficiency ratio to record levels for the company. Deposits fell as anticipated due to higher-yielding market alternatives provided by increasing interest rates, however our core deposit base continues to provide strong liquidity for the company."
Harton continued, "From a strategic perspective, we continued to strengthen our Board of Directors with the appointment of George Bell, an experienced information technology executive who has more than 35 years in large financial institutions, with a specific emphasis on Customer Information Management. He brings an incredible depth of knowledge in leveraging technology to improve products and services, enhancing customer experience, and increasing organizational productivity. We are excited to have George join United as we continue to grow and expand our capabilities."
Harton concluded, "Finally, our thoughts are with the people, communities and businesses in Florida who are recovering from the devastating impact of Hurricane Ian. We are fortunate to report that United sustained no loss of life or property."
Third Quarter 2022 Financial Highlights:
- Net income of $81.2 million and pre-tax, pre-provision income of $118.9 million
- EPS decreased by 10% compared to third quarter 2021 on a GAAP basis and on an operating basis; compared to second quarter of 2022, EPS increased by 21% on a GAAP basis and increased 14% on an operating basis
- Return on assets of 1.32%, or 1.34% on an operating basis
- Pre-tax, pre-provision return on assets of 1.94%, or 1.97% on an operating basis
- Return on common equity of 11.02%
- Return on tangible common equity of 15.60% on an operating basis
- A provision for credit losses of $15.4 million, which increased the allowance for loan losses to 1.12% of loans from 1.05% in the second quarter
- Loan production of $1.6 billion, resulting in loan growth of 9.4% annualized for the quarter
- Core transaction deposits were down $225 million, which represents a decline of 5% annualized for the quarter
- Net interest margin of 3.57% was up 38 basis points from the second quarter, due to the effect of higher interest rates
- Mortgage closings were $317 million compared to $568 million a year ago; mortgage rate locks were $456 million compared to $731 million a year ago
- Noninterest income was down $1.5 million on a linked quarter basis, primarily driven by lower lock volume driven by higher interest rates
- Noninterest expenses decreased by $8.0 million compared to the second quarter on a GAAP basis and by $2.6 million on an operating basis, primarily driven by lower merger-related charges as the second quarter included costs for the Reliant systems conversion
- Efficiency ratio improved to historically low levels of 48.4%, or 47.7% on an operating basis
- Net charge-offs were $1.1 million or 3 basis points as a percent of average loans, up 6 basis points from the net recoveries experienced in the second quarter
- Nonperforming assets were 0.15% of total assets, an increase of 1 basis point compared to June 30, 2022
- Quarterly common shareholder dividend was $0.22 per share declared during the quarter, an increase of 10% year-over-year
Conference Call
United will hold a conference call on Wednesday, October 19, 2022, at 11:00 am EST to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10171644/f49bf32028. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting "Events and Presentations" under "News and Events" within the Investor Relations section of the company's website, www.ucbi.com.
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Third Quarter 2022 - 2021 Change | For the Nine Months Ended September 30, | YTD 2022 - 2021 Change | ||||||||||||||||||||||||||||||
| Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2022 | 2021 | ||||||||||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 213,887 | $ | 187,378 | $ | 171,059 | $ | 143,768 | $ | 147,675 | $ | 572,324 | $ | 435,026 | ||||||||||||||||||||
| Interest expense | 14,113 | 8,475 | 7,267 | 6,213 | 6,636 | 29,855 | 23,547 | |||||||||||||||||||||||||||
| Net interest revenue | 199,774 | 178,903 | 163,792 | 137,555 | 141,039 | 42 | % | 542,469 | 411,479 | 32 | % | |||||||||||||||||||||||
| Provision for (release of) credit losses | 15,392 | 5,604 | 23,086 | (647 | ) | (11,034 | ) | 44,082 | (36,903 | ) | ||||||||||||||||||||||||
| Noninterest income | 31,922 | 33,458 | 38,973 | 37,177 | 40,095 | (20 | ) | 104,353 | 120,641 | (14 | ) | |||||||||||||||||||||||
| Total revenue | 216,304 | 206,757 | 179,679 | 175,379 | 192,168 | 13 | 602,740 | 569,023 | 6 | |||||||||||||||||||||||||
| Noninterest expenses | 112,755 | 120,790 | 119,275 | 109,156 | 96,749 | 17 | 352,820 | 287,483 | 23 | |||||||||||||||||||||||||
| Income before income tax expense | 103,549 | 85,967 | 60,404 | 66,223 | 95,419 | 9 | 249,920 | 281,540 | (11 | ) | ||||||||||||||||||||||||
| Income tax expense | 22,388 | 19,125 | 12,385 | 14,204 | 21,603 | 4 | 53,898 | 63,758 | (15 | ) | ||||||||||||||||||||||||
| Net income | 81,161 | 66,842 | 48,019 | 52,019 | 73,816 | 10 | 196,022 | 217,782 | (10 | ) | ||||||||||||||||||||||||
| Merger-related and other charges | 1,746 | 7,143 | 9,016 | 9,912 | 1,437 | 17,905 | 4,058 | |||||||||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (385 | ) | (1,575 | ) | (1,963 | ) | (2,265 | ) | (328 | ) | (3,923 | ) | (909 | ) | ||||||||||||||||||||
| Net income - operating (1) | $ | 82,522 | $ | 72,410 | $ | 55,072 | $ | 59,666 | $ | 74,925 | 10 | $ | 210,004 | $ | 220,931 | (5 | ) | |||||||||||||||||
| Pre-tax pre-provision income (5) | $ | 118,941 | $ | 91,571 | $ | 83,490 | $ | 65,576 | $ | 84,385 | 41 | $ | 294,002 | $ | 244,637 | 20 | ||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||||||||
| Diluted net income - GAAP | $ | 0.74 | $ | 0.61 | $ | 0.43 | $ | 0.55 | $ | 0.82 | (10 | ) | $ | 1.78 | $ | 2.42 | (26 | ) | ||||||||||||||||
| Diluted net income - operating (1) | 0.75 | 0.66 | 0.50 | 0.64 | 0.83 | (10 | ) | 1.91 | 2.45 | (22 | ) | |||||||||||||||||||||||
| Cash dividends declared | 0.22 | 0.21 | 0.21 | 0.20 | 0.20 | 10 | 0.64 | 0.58 | 10 | |||||||||||||||||||||||||
| Book value | 23.78 | 23.96 | 24.38 | 23.63 | 23.25 | 2 | 23.78 | 23.25 | 2 | |||||||||||||||||||||||||
| Tangible book value (3) | 16.52 | 16.68 | 17.08 | 18.42 | 18.68 | (12 | ) | 16.52 | 18.68 | (12 | ) | |||||||||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||||||||
| Return on common equity - GAAP (2)(4) | 11.02 | % | 9.31 | % | 6.80 | % | 9.32 | % | 14.26 | % | 9.08 | % | 14.55 | % | ||||||||||||||||||||
| Return on common equity - operating (1)(2)(4) | 11.21 | 10.10 | 7.83 | 10.74 | 14.48 | 9.75 | 14.77 | |||||||||||||||||||||||||||
| Return on tangible common equity - operating (1)(2)(3)(4) | 15.60 | 14.20 | 11.00 | 13.93 | 18.23 | 13.64 | 18.55 | |||||||||||||||||||||||||||
| Return on assets - GAAP (4) | 1.32 | 1.08 | 0.78 | 0.96 | 1.48 | 1.06 | 1.52 | |||||||||||||||||||||||||||
| Return on assets - operating (1)(4) | 1.34 | 1.17 | 0.89 | 1.10 | 1.50 | 1.13 | 1.54 | |||||||||||||||||||||||||||
| Return on assets - pre-tax pre-provision (4)(5) | 1.94 | 1.49 | 1.37 | 1.21 | 1.70 | 1.60 | 1.71 | |||||||||||||||||||||||||||
| Return on assets - pre-tax pre-provision, excluding merger- related and other charges (1)(4)(5) | 1.97 | 1.60 | 1.52 | 1.40 | 1.73 | 1.70 | 1.74 | |||||||||||||||||||||||||||
| Net interest margin (fully taxable equivalent) (4) | 3.57 | 3.19 | 2.97 | 2.81 | 3.12 | 3.25 | 3.17 | |||||||||||||||||||||||||||
| Efficiency ratio - GAAP | 48.41 | 56.58 | 57.43 | 62.12 | 53.11 | 53.94 | 53.72 | |||||||||||||||||||||||||||
| Efficiency ratio - operating (1) | 47.66 | 53.23 | 53.09 | 56.48 | 52.33 | 51.20 | 52.97 | |||||||||||||||||||||||||||
| Equity to total assets | 11.12 | 10.95 | 11.06 | 10.61 | 10.89 | 11.12 | 10.89 | |||||||||||||||||||||||||||
| Tangible common equity to tangible assets (3) | 7.70 | 7.59 | 7.72 | 8.09 | 8.53 | 7.70 | 8.53 | |||||||||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||||||||
| Nonperforming assets ("NPAs") | $ | 35,511 | $ | 34,428 | $ | 40,816 | $ | 32,855 | $ | 45,335 | (22 | ) | $ | 35,511 | $ | 45,335 | (22 | ) | ||||||||||||||||
| Allowance for credit losses - loans | 148,502 | 136,925 | 132,805 | 102,532 | 99,620 | 49 | 148,502 | 99,620 | 49 | |||||||||||||||||||||||||
| Allowance for credit losses - total | 167,300 | 153,042 | 146,369 | 113,524 | 110,875 | 167,300 | 110,875 | |||||||||||||||||||||||||||
| Net charge-offs (recoveries) | 1,134 | (1,069 | ) | 2,978 | 248 | 551 | 3,043 | (210 | ) | |||||||||||||||||||||||||
| Allowance for credit losses - loans to loans | 1.00 | % | 0.94 | % | 0.93 | % | 0.87 | % | 0.89 | % | 1.00 | % | 0.89 | % | ||||||||||||||||||||
| Allowance for credit losses - total to loans | 1.12 | 1.05 | 1.02 | 0.97 | 0.99 | 1.12 | 0.99 | |||||||||||||||||||||||||||
| Net charge-offs to average loans (4) | 0.03 | (0.03 | ) | 0.08 | 0.01 | 0.02 | 0.03 | — | ||||||||||||||||||||||||||
| NPAs to total assets | 0.15 | 0.14 | 0.17 | 0.16 | 0.23 | 0.15 | 0.23 | |||||||||||||||||||||||||||
| AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||
| Loans | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | $ | 11,191 | 33 | $ | 14,882 | $ | 11,191 | 33 | ||||||||||||||||||
| Investment securities | 6,539 | 6,683 | 6,410 | 5,653 | 5,335 | 23 | 6,539 | 5,335 | 23 | |||||||||||||||||||||||||
| Total assets | 23,688 | 24,213 | 24,374 | 20,947 | 19,481 | 22 | 23,688 | 19,481 | 22 | |||||||||||||||||||||||||
| Deposits | 20,321 | 20,873 | 21,056 | 18,241 | 16,865 | 20 | 20,321 | 16,865 | 20 | |||||||||||||||||||||||||
| Shareholders' equity | 2,635 | 2,651 | 2,695 | 2,222 | 2,122 | 24 | 2,635 | 2,122 | 24 | |||||||||||||||||||||||||
| Common shares outstanding (thousands) | 106,163 | 106,034 | 106,025 | 89,350 | 86,559 | 23 | 106,163 | 86,559 | 23 | |||||||||||||||||||||||||
(1) Excludes merger-related and other charges. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||
| Non-GAAP Performance Measures Reconciliation | ||||||||||||||||||||||||||||
| Selected Financial Information | ||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||
| 2022 | 2021 | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
| Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2022 | 2021 | ||||||||||||||||||||||
| Noninterest expense reconciliation | ||||||||||||||||||||||||||||
| Noninterest expenses (GAAP) | $ | 112,755 | $ | 120,790 | $ | 119,275 | $ | 109,156 | $ | 96,749 | $ | 352,820 | $ | 287,483 | ||||||||||||||
| Merger-related and other charges | (1,746 | ) | (7,143 | ) | (9,016 | ) | (9,912 | ) | (1,437 | ) | (17,905 | ) | (4,058 | ) | ||||||||||||||
| Noninterest expenses - operating | $ | 111,009 | $ | 113,647 | $ | 110,259 | $ | 99,244 | $ | 95,312 | $ | 334,915 | $ | 283,425 | ||||||||||||||
| Net income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 81,161 | $ | 66,842 | $ | 48,019 | $ | 52,019 | $ | 73,816 | $ | 196,022 | $ | 217,782 | ||||||||||||||
| Merger-related and other charges | 1,746 | 7,143 | 9,016 | 9,912 | 1,437 | 17,905 | 4,058 | |||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (385 | ) | (1,575 | ) | (1,963 | ) | (2,265 | ) | (328 | ) | (3,923 | ) | (909 | ) | ||||||||||||||
| Net income - operating | $ | 82,522 | $ | 72,410 | $ | 55,072 | $ | 59,666 | $ | 74,925 | $ | 210,004 | $ | 220,931 | ||||||||||||||
| Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 81,161 | $ | 66,842 | $ | 48,019 | $ | 52,019 | $ | 73,816 | $ | 196,022 | $ | 217,782 | ||||||||||||||
| Income tax expense | 22,388 | 19,125 | 12,385 | 14,204 | 21,603 | 53,898 | 63,758 | |||||||||||||||||||||
| Provision for (release of) credit losses | 15,392 | 5,604 | 23,086 | (647 | ) | (11,034 | ) | 44,082 | (36,903 | ) | ||||||||||||||||||
| Pre-tax pre-provision income | $ | 118,941 | $ | 91,571 | $ | 83,490 | $ | 65,576 | $ | 84,385 | $ | 294,002 | $ | 244,637 | ||||||||||||||
| Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | 0.74 | $ | 0.61 | $ | 0.43 | $ | 0.55 | $ | 0.82 | $ | 1.78 | $ | 2.42 | ||||||||||||||
| Merger-related and other charges, net of tax | 0.01 | 0.05 | 0.07 | 0.09 | 0.01 | 0.13 | 0.03 | |||||||||||||||||||||
| Diluted income per common share - operating | $ | 0.75 | $ | 0.66 | $ | 0.50 | $ | 0.64 | $ | 0.83 | $ | 1.91 | $ | 2.45 | ||||||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 23.78 | $ | 23.96 | $ | 24.38 | $ | 23.63 | $ | 23.25 | $ | 23.78 | $ | 23.25 | ||||||||||||||
| Effect of goodwill and other intangibles | (7.26 | ) | (7.28 | ) | (7.30 | ) | (5.21 | ) | (4.57 | ) | (7.26 | ) | (4.57 | ) | ||||||||||||||
| Tangible book value per common share | $ | 16.52 | $ | 16.68 | $ | 17.08 | $ | 18.42 | $ | 18.68 | $ | 16.52 | $ | 18.68 | ||||||||||||||
| Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
| Return on common equity (GAAP) | 11.02 | % | 9.31 | % | 6.80 | % | 9.32 | % | 14.26 | % | 9.08 | % | 14.55 | % | ||||||||||||||
| Merger-related and other charges, net of tax | 0.19 | 0.79 | 1.03 | 1.42 | 0.22 | 0.67 | 0.22 | |||||||||||||||||||||
| Return on common equity - operating | 11.21 | 10.10 | 7.83 | 10.74 | 14.48 | 9.75 | 14.77 | |||||||||||||||||||||
| Effect of goodwill and other intangibles | 4.39 | 4.10 | 3.17 | 3.19 | 3.75 | 3.89 | 3.78 | |||||||||||||||||||||
| Return on tangible common equity - operating | 15.60 | % | 14.20 | % | 11.00 | % | 13.93 | % | 18.23 | % | 13.64 | % | 18.55 | % | ||||||||||||||
| Return on assets reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 1.32 | % | 1.08 | % | 0.78 | % | 0.96 | % | 1.48 | % | 1.06 | % | 1.52 | % | ||||||||||||||
| Merger-related and other charges, net of tax | 0.02 | 0.09 | 0.11 | 0.14 | 0.02 | 0.07 | 0.02 | |||||||||||||||||||||
| Return on assets - operating | 1.34 | % | 1.17 | % | 0.89 | % | 1.10 | % | 1.50 | % | 1.13 | % | 1.54 | % | ||||||||||||||
| Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 1.32 | % | 1.08 | % | 0.78 | % | 0.96 | % | 1.48 | % | 1.06 | % | 1.52 | % | ||||||||||||||
| Income tax expense | 0.37 | 0.32 | 0.20 | 0.26 | 0.45 | 0.30 | 0.45 | |||||||||||||||||||||
| (Release of) provision for credit losses | 0.25 | 0.09 | 0.39 | (0.01 | ) | (0.23 | ) | 0.24 | (0.26 | ) | ||||||||||||||||||
| Return on assets - pre-tax, pre-provision | 1.94 | 1.49 | 1.37 | 1.21 | 1.70 | 1.60 | 1.71 | |||||||||||||||||||||
| Merger-related and other charges | 0.03 | 0.11 | 0.15 | 0.19 | 0.03 | 0.10 | 0.03 | |||||||||||||||||||||
| Return on assets - pre-tax pre-provision, excluding merger-related and other charges | 1.97 | % | 1.60 | % | 1.52 | % | 1.40 | % | 1.73 | % | 1.70 | % | 1.74 | % | ||||||||||||||
| Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 48.41 | % | 56.58 | % | 57.43 | % | 62.12 | % | 53.11 | % | 53.94 | % | 53.72 | % | ||||||||||||||
| Merger-related and other charges | (0.75 | ) | (3.35 | ) | (4.34 | ) | (5.64 | ) | (0.78 | ) | (2.74 | ) | (0.75 | ) | ||||||||||||||
| Efficiency ratio - operating | 47.66 | % | 53.23 | % | 53.09 | % | 56.48 | % | 52.33 | % | 51.20 | % | 52.97 | % | ||||||||||||||
| Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||||||||
| Equity to total assets (GAAP) | 11.12 | % | 10.95 | % | 11.06 | % | 10.61 | % | 10.89 | % | 11.12 | % | 10.89 | % | ||||||||||||||
| Effect of goodwill and other intangibles | — | (2.96 | ) | (2.94 | ) | (2.06 | ) | (1.87 | ) | — | (1.87 | ) | ||||||||||||||||
| Effect of preferred equity | (3.42 | ) | (0.40 | ) | (0.40 | ) | (0.46 | ) | (0.49 | ) | (3.42 | ) | (0.49 | ) | ||||||||||||||
| Tangible common equity to tangible assets | 7.70 | % | 7.59 | % | 7.72 | % | 8.09 | % | 8.53 | % | 7.70 | % | 8.53 | % | ||||||||||||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||
| Loan Portfolio Composition at Period-End | ||||||||||||||||||||||
| 2022 | 2021 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||
| (in millions) | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | |||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||
| Owner occupied commercial RE | $ | 2,700 | $ | 2,681 | $ | 2,638 | $ | 2,322 | $ | 2,149 | $ | 19 | $ | 551 | ||||||||
| Income producing commercial RE | 3,299 | 3,273 | 3,328 | 2,601 | 2,542 | 26 | 757 | |||||||||||||||
| Commercial & industrial | 2,236 | 2,243 | 2,302 | 1,822 | 1,729 | (7 | ) | 507 | ||||||||||||||
| Paycheck protection program | 2 | 10 | 34 | 88 | 150 | (8 | ) | (148 | ) | |||||||||||||
| Commercial construction | 1,514 | 1,514 | 1,482 | 1,015 | 947 | — | 567 | |||||||||||||||
| Equipment financing | 1,281 | 1,211 | 1,148 | 1,083 | 1,017 | 70 | 264 | |||||||||||||||
| Total commercial | 11,032 | 10,932 | 10,932 | 8,931 | 8,534 | 100 | 2,498 | |||||||||||||||
| Residential mortgage | 2,149 | 1,997 | 1,826 | 1,638 | 1,533 | 152 | 616 | |||||||||||||||
| Home equity lines of credit | 832 | 801 | 778 | 694 | 661 | 31 | 171 | |||||||||||||||
| Residential construction | 423 | 381 | 368 | 359 | 321 | 42 | 102 | |||||||||||||||
| Manufactured housing | 301 | 287 | 269 | — | — | 14 | 301 | |||||||||||||||
| Consumer | 145 | 143 | 143 | 138 | 142 | 2 | 3 | |||||||||||||||
| Total loans | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | $ | 11,191 | $ | 341 | $ | 3,691 | ||||||||
| LOANS BY MARKET | ||||||||||||||||||||||
| Georgia | $ | 4,003 | $ | 3,960 | $ | 3,879 | $ | 3,778 | $ | 3,732 | $ | 43 | $ | 271 | ||||||||
| South Carolina | 2,516 | 2,377 | 2,323 | 2,235 | 2,145 | 139 | 371 | |||||||||||||||
| North Carolina | 2,117 | 2,006 | 1,879 | 1,895 | 1,427 | 111 | 690 | |||||||||||||||
| Tennessee | 2,536 | 2,621 | 2,661 | 373 | 383 | (85 | ) | 2,153 | ||||||||||||||
| Florida | 1,259 | 1,235 | 1,208 | 1,148 | 1,113 | 24 | 146 | |||||||||||||||
| Commercial Banking Solutions | 2,451 | 2,342 | 2,366 | 2,331 | 2,391 | 109 | 60 | |||||||||||||||
| Total loans | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | $ | 11,191 | $ | 341 | $ | 3,691 | ||||||||
| UNITED COMMUNITY BANKS, INC. | |||||||||
| Financial Highlights | |||||||||
| Credit Quality | |||||||||
| (in thousands) | |||||||||
| 2022 | |||||||||
| Third Quarter | Second Quarter | First Quarter | |||||||
| NONACCRUAL LOANS | |||||||||
| Owner occupied RE | $ | 877 | $ | 1,876 | $ | 4,590 | |||
| Income producing RE | 2,663 | 7,074 | 7,220 | ||||||
| Commercial & industrial | 11,108 | 4,548 | 6,227 | ||||||
| Commercial construction | 150 | 208 | 401 | ||||||
| Equipment financing | 3,198 | 3,249 | 2,540 | ||||||
| Total commercial | 17,996 | 16,955 | 20,978 | ||||||
| Residential mortgage | 10,424 | 12,228 | 13,024 | ||||||
| Home equity lines of credit | 1,151 | 933 | 1,183 | ||||||
| Residential construction | 104 | 198 | 212 | ||||||
| Manufactured housing | 4,187 | 2,804 | 2,507 | ||||||
| Consumer | 17 | 25 | 40 | ||||||
| Total nonaccrual loans held for investment | 33,879 | 33,143 | 37,944 | ||||||
| Nonaccrual loans held for sale | 316 | 317 | 2,033 | ||||||
| OREO and repossessed assets | 1,316 | 968 | 839 | ||||||
| Total NPAs | $ | 35,511 | $ | 34,428 | $ | 40,816 | |||
| 2022 | |||||||||||||||||||||
| 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 (RECOVERIES) BY CATEGORY | |||||||||||||||||||||
| Owner occupied RE | $ | (90 | ) | (0.01 | )% | $ | (1,496 | ) | (0.23 | )% | $ | (45 | ) | (0.01 | )% | ||||||
| Income producing RE | 176 | 0.02 | (116 | ) | (0.01 | ) | (290 | ) | (0.04 | ) | |||||||||||
| Commercial & industrial | (744 | ) | (0.13 | ) | (302 | ) | (0.05 | ) | 2,929 | 0.51 | |||||||||||
| Commercial construction | 10 | — | (144 | ) | (0.04 | ) | (373 | ) | (0.10 | ) | |||||||||||
| Equipment financing | 1,121 | 0.36 | 907 | 0.31 | 267 | 0.10 | |||||||||||||||
| Total commercial | 473 | 0.02 | (1,151 | ) | (0.04 | ) | 2,488 | 0.09 | |||||||||||||
| Residential mortgage | (66 | ) | (0.01 | ) | (51 | ) | (0.01 | ) | (97 | ) | (0.02 | ) | |||||||||
| Home equity lines of credit | (102 | ) | (0.05 | ) | (346 | ) | (0.18 | ) | (81 | ) | (0.04 | ) | |||||||||
| Residential construction | (109 | ) | (0.11 | ) | (76 | ) | (0.08 | ) | (23 | ) | (0.03 | ) | |||||||||
| Manufactured housing | 220 | 0.30 | 135 | 0.20 | 164 | 0.25 | |||||||||||||||
| Consumer | 718 | 1.98 | 420 | 1.18 | 527 | 1.48 | |||||||||||||||
| Total | $ | 1,134 | 0.03 | $ | (1,069 | ) | (0.03 | ) | $ | 2,978 | 0.08 | ||||||||||
| (1) Annualized. | |||||||||||||||||||||
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
| (in thousands, except share and per share data) | September 30, 2022 | December 31, 2021 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 222,524 | $ | 144,244 | ||||
| Interest-bearing deposits in banks | 216,496 | 2,147,266 | ||||||
| Federal funds and other short-term investments | 45,000 | 27,000 | ||||||
| Cash and cash equivalents | 484,020 | 2,318,510 | ||||||
| Debt securities available-for-sale | 3,862,886 | 4,496,824 | ||||||
| Debt securities held-to-maturity (fair value $2,241,160 and $1,148,804, respectively) | 2,676,405 | 1,156,098 | ||||||
| Loans held for sale | 21,967 | 44,109 | ||||||
| Loans and leases held for investment | 14,882,484 | 11,760,346 | ||||||
| Less allowance for credit losses - loans and leases | (148,502 | ) | (102,532 | ) | ||||
| Loans and leases, net | 14,733,982 | 11,657,814 | ||||||
| Premises and equipment, net | 288,597 | 245,296 | ||||||
| Bank owned life insurance | 300,365 | 217,713 | ||||||
| Goodwill and other intangible assets, net | 780,868 | 472,407 | ||||||
| Other assets | 538,765 | 338,000 | ||||||
| Total assets | $ | 23,687,855 | $ | 20,946,771 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 8,198,129 | $ | 6,956,981 | ||||
| NOW and interest-bearing demand | 4,208,731 | 4,252,209 | ||||||
| Money market | 4,638,509 | 4,183,354 | ||||||
| Savings | 1,508,557 | 1,215,779 | ||||||
| Time | 1,622,608 | 1,442,498 | ||||||
| Brokered | 144,608 | 190,358 | ||||||
| Total deposits | 20,321,142 | 18,241,179 | ||||||
| Long-term debt | 324,515 | 247,360 | ||||||
| Accrued expenses and other liabilities | 407,488 | 235,987 | ||||||
| Total liabilities | 21,053,145 | 18,724,526 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock; $1 par value; 10,000,000 shares authorized; 4,000 shares Series I issued and outstanding, $25,000 per share liquidation preference | 96,422 | 96,422 | ||||||
| Common stock, $1 par value; 200,000,000 shares authorized, 106,162,861 and 89,349,826 shares issued and outstanding, respectively | 106,163 | 89,350 | ||||||
| Common stock issuable; 596,365 and 595,705 shares, respectively | 11,966 | 11,288 | ||||||
| Capital surplus | 2,304,514 | 1,721,007 | ||||||
| Retained earnings | 452,788 | 330,654 | ||||||
| Accumulated other comprehensive loss | (337,143 | ) | (26,476 | ) | ||||
| Total shareholders' equity | 2,634,710 | 2,222,245 | ||||||
| Total liabilities and shareholders' equity | $ | 23,687,855 | $ | 20,946,771 | ||||
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) | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Interest revenue: | |||||||||||||||
| Loans, including fees | $ | 174,065 | $ | 128,477 | $ | 476,072 | $ | 382,261 | |||||||
| Investment securities, including tax exempt of $2,568, $2,280, $7,762 and $6,685, respectively | 36,953 | 18,540 | 91,043 | 51,530 | |||||||||||
| Deposits in banks and short-term investments | 2,869 | 658 | 5,209 | 1,235 | |||||||||||
| Total interest revenue | 213,887 | 147,675 | 572,324 | 435,026 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits: | |||||||||||||||
| NOW and interest-bearing demand | 3,992 | 1,290 | 7,624 | 4,158 | |||||||||||
| Money market | 4,503 | 1,119 | 7,030 | 4,278 | |||||||||||
| Savings | 178 | 55 | 337 | 157 | |||||||||||
| Time | 1,207 | 678 | 2,322 | 3,388 | |||||||||||
| Deposits | 9,880 | 3,142 | 17,313 | 11,981 | |||||||||||
| Short-term borrowings | 27 | — | 27 | 2 | |||||||||||
| Long-term debt | 4,206 | 3,494 | 12,515 | 11,564 | |||||||||||
| Total interest expense | 14,113 | 6,636 | 29,855 | 23,547 | |||||||||||
| Net interest revenue | 199,774 | 141,039 | 542,469 | 411,479 | |||||||||||
| Provision for (release of) credit losses | 15,392 | (11,034 | ) | 44,082 | (36,903 | ) | |||||||||
| Net interest revenue after provision for credit losses | 184,382 | 152,073 | 498,387 | 448,382 | |||||||||||
| Noninterest income: | |||||||||||||||
| Service charges and fees | 9,569 | 9,350 | 28,644 | 25,255 | |||||||||||
| Mortgage loan gains and other related fees | 6,297 | 13,828 | 29,420 | 47,536 | |||||||||||
| Wealth management fees | 5,879 | 5,554 | 17,759 | 12,881 | |||||||||||
| Gains from sales of other loans, net | 2,228 | 2,353 | 9,226 | 7,506 | |||||||||||
| Lending and loan servicing fees | 2,946 | 2,825 | 7,518 | 7,070 | |||||||||||
| Securities gains (losses), net | — | — | (3,688 | ) | 41 | ||||||||||
| Other | 5,003 | 6,185 | 15,474 | 20,352 | |||||||||||
| Total noninterest income | 31,922 | 40,095 | 104,353 | 120,641 | |||||||||||
| Total revenue | 216,304 | 192,168 | 602,740 | 569,023 | |||||||||||
| Noninterest expenses: | |||||||||||||||
| Salaries and employee benefits | 67,823 | 60,458 | 208,062 | 180,457 | |||||||||||
| Communications and equipment | 8,795 | 7,368 | 27,718 | 21,979 | |||||||||||
| Occupancy | 9,138 | 7,096 | 27,381 | 21,130 | |||||||||||
| Advertising and public relations | 2,544 | 1,458 | 6,332 | 4,150 | |||||||||||
| Postage, printing and supplies | 2,190 | 1,731 | 6,308 | 5,171 | |||||||||||
| Professional fees | 4,821 | 5,347 | 14,670 | 14,509 | |||||||||||
| Lending and loan servicing expense | 2,333 | 2,450 | 7,746 | 8,508 | |||||||||||
| Outside services - electronic banking | 3,159 | 2,308 | 8,629 | 6,811 | |||||||||||
| FDIC assessments and other regulatory charges | 2,356 | 1,723 | 6,796 | 5,520 | |||||||||||
| Amortization of intangibles | 1,678 | 1,028 | 5,207 | 2,942 | |||||||||||
| Merger-related and other charges | 1,746 | 1,437 | 17,905 | 4,058 | |||||||||||
| Other | 6,172 | 4,345 | 16,066 | 12,248 | |||||||||||
| Total noninterest expenses | 112,755 | 96,749 | 352,820 | 287,483 | |||||||||||
| Income before income taxes | 103,549 | 95,419 | 249,920 | 281,540 | |||||||||||
| Income tax expense | 22,388 | 21,603 | 53,898 | 63,758 | |||||||||||
| Net income | 81,161 | 73,816 | 196,022 | 217,782 | |||||||||||
| Preferred stock dividends | 1,719 | 1,719 | 5,157 | 5,157 | |||||||||||
| Earnings allocated to participating securities | 407 | 448 | 1,007 | 1,342 | |||||||||||
| Net income available to common shareholders | $ | 79,035 | $ | 71,649 | $ | 189,858 | $ | 211,283 | |||||||
| Net income per common share: | |||||||||||||||
| Basic | $ | 0.74 | $ | 0.82 | $ | 1.78 | $ | 2.42 | |||||||
| Diluted | 0.74 | 0.82 | 1.78 | 2.42 | |||||||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 106,687 | 87,211 | 106,616 | 87,274 | |||||||||||
| Diluted | 106,800 | 87,355 | 106,732 | 87,413 | |||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
| 2022 | 2021 | |||||||||||||||||||
| (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) | $ | 14,658,397 | $ | 174,168 | 4.71 | % | $ | 11,204,653 | $ | 128,185 | 4.54 | % | ||||||||
| Taxable securities (3) | 6,539,615 | 34,385 | 2.10 | 4,738,860 | 16,260 | 1.37 | ||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 493,115 | 3,449 | 2.80 | 383,196 | 3,061 | 3.20 | ||||||||||||||
| Federal funds sold and other interest-earning assets | 614,755 | 3,106 | 2.00 | 1,751,222 | 1,185 | 0.27 | ||||||||||||||
| Total interest-earning assets (FTE) | 22,305,882 | 215,108 | 3.83 | 18,077,931 | 148,691 | 3.27 | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||
| Allowance for credit losses | (138,907 | ) | (111,952 | ) | ||||||||||||||||
| Cash and due from banks | 231,376 | 124,360 | ||||||||||||||||||
| Premises and equipment | 290,768 | 228,556 | ||||||||||||||||||
| Other assets (3) | 1,261,236 | 1,002,810 | ||||||||||||||||||
| Total assets | $ | 23,950,355 | $ | 19,321,705 | ||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| NOW and interest-bearing demand | $ | 4,335,619 | 3,992 | 0.37 | $ | 3,594,670 | 1,290 | 0.14 | ||||||||||||
| Money market | 4,849,705 | 4,503 | 0.37 | 4,010,720 | 1,119 | 0.11 | ||||||||||||||
| Savings | 1,515,350 | 178 | 0.05 | 1,120,843 | 55 | 0.02 | ||||||||||||||
| Time | 1,635,580 | 984 | 0.24 | 1,466,821 | 609 | 0.16 | ||||||||||||||
| Brokered time deposits | 51,530 | 223 | 1.72 | 63,917 | 69 | 0.43 | ||||||||||||||
| Total interest-bearing deposits | 12,387,784 | 9,880 | 0.32 | 10,256,971 | 3,142 | 0.12 | ||||||||||||||
| Federal funds purchased and other borrowings | 3,442 | 27 | 3.11 | — | — | — | ||||||||||||||
| Federal Home Loan Bank advances | — | — | — | 54 | — | — | ||||||||||||||
| Long-term debt | 324,444 | 4,206 | 5.14 | 257,139 | 3,494 | 5.39 | ||||||||||||||
| Total borrowed funds | 327,886 | 4,233 | 5.12 | 257,193 | 3,494 | 5.39 | ||||||||||||||
| Total interest-bearing liabilities | 12,715,670 | 14,113 | 0.44 | 10,514,164 | 6,636 | 0.25 | ||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 8,176,987 | 6,379,969 | ||||||||||||||||||
| Other liabilities | 349,647 | 308,551 | ||||||||||||||||||
| Total liabilities | 21,242,304 | 17,202,684 | ||||||||||||||||||
| Shareholders' equity | 2,708,051 | 2,119,021 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 23,950,355 | $ | 19,321,705 | ||||||||||||||||
| Net interest revenue (FTE) | $ | 200,995 | $ | 142,055 | ||||||||||||||||
| Net interest-rate spread (FTE) | 3.39 | % | 3.02 | % | ||||||||||||||||
| Net interest margin (FTE) (4) | 3.57 | % | 3.12 | % | ||||||||||||||||
| (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) | Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $318 million in 2022 and pretax unrealized gains of $39.6 million in 2021 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,
| 2022 | 2021 | |||||||||||||||||||
| (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) | $ | 14,426,470 | $ | 475,989 | 4.41 | % | $ | 11,417,285 | $ | 380,765 | 4.46 | % | ||||||||
| Taxable securities (3) | 6,274,230 | 83,281 | 1.77 | 4,206,099 | 44,845 | 1.42 | ||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 498,177 | 10,425 | 2.79 | 381,323 | 8,979 | 3.14 | ||||||||||||||
| Federal funds sold and other interest-earning assets | 1,271,287 | 6,192 | 0.65 | 1,468,487 | 3,462 | 0.31 | ||||||||||||||
| Total interest-earning assets (FTE) | 22,470,164 | 575,887 | 3.43 | 17,473,194 | 438,051 | 3.35 | ||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||
| Allowance for loan losses | (129,278 | ) | (127,793 | ) | ||||||||||||||||
| Cash and due from banks | 200,463 | 138,973 | ||||||||||||||||||
| Premises and equipment | 284,850 | 225,021 | ||||||||||||||||||
| Other assets (3) | 1,308,647 | 1,007,669 | ||||||||||||||||||
| Total assets | $ | 24,134,846 | $ | 18,717,064 | ||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| NOW and interest-bearing demand | $ | 4,520,079 | 7,624 | 0.23 | $ | 3,452,206 | 4,158 | 0.16 | ||||||||||||
| Money market | 4,992,357 | 7,030 | 0.19 | 3,853,907 | 4,278 | 0.15 | ||||||||||||||
| Savings | 1,483,169 | 337 | 0.03 | 1,064,045 | 157 | 0.02 | ||||||||||||||
| Time | 1,688,250 | 2,009 | 0.16 | 1,551,934 | 3,096 | 0.27 | ||||||||||||||
| Brokered time deposits | 65,133 | 313 | 0.64 | 67,794 | 292 | 0.58 | ||||||||||||||
| Total interest-bearing deposits | 12,748,988 | 17,313 | 0.18 | 9,989,886 | 11,981 | 0.16 | ||||||||||||||
| Federal funds purchased and other borrowings | 1,383 | 27 | 2.61 | 41 | — | — | ||||||||||||||
| Federal Home Loan Bank advances | — | — | — | 1,117 | 2 | 0.24 | ||||||||||||||
| Long-term debt | 322,600 | 12,515 | 5.19 | 286,347 | 11,564 | 5.40 | ||||||||||||||
| Total borrowed funds | 323,983 | 12,542 | 5.18 | 287,505 | 11,566 | 5.38 | ||||||||||||||
| Total interest-bearing liabilities | 13,072,971 | 29,855 | 0.31 | 10,277,391 | 23,547 | 0.31 | ||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 7,958,392 | 6,059,680 | ||||||||||||||||||
| Other liabilities | 375,182 | 311,749 | ||||||||||||||||||
| Total liabilities | 21,406,545 | 16,648,820 | ||||||||||||||||||
| Shareholders' equity | 2,728,301 | 2,068,244 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 24,134,846 | $ | 18,717,064 | ||||||||||||||||
| Net interest revenue (FTE) | $ | 546,032 | $ | 414,504 | ||||||||||||||||
| Net interest-rate spread (FTE) | 3.12 | % | 3.04 | % | ||||||||||||||||
| Net interest margin (FTE) (4) | 3.25 | % | 3.17 | % | ||||||||||||||||
| (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) | Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $221 million in 2022 and pretax unrealized gains of $40.3 million in 2021, respectively, 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. (NASDAQGS: UCBI) provides a full range of banking, wealth management and mortgage services for relationship-oriented consumers and business owners. As of September 30, 2022, United had $23.7 billion in assets and 193 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee, along with a national SBA lending franchise and a national equipment lending subsidiary. The company, known as "The Bank That SERVICE Built," has been recognized nationally for delivering award-winning service. In 2022, J.D. Power ranked United highest in customer satisfaction with consumer banking in the Southeast, marking eight out of the last nine years United earned the coveted award. Forbes recognized United as one of the top ten World's Best Banks in 2022. Forbes also included United on its 2022 list of the 100 Best Banks in America for the ninth consecutive year. United also received ten Greenwich Excellence Awards in 2021 for excellence in Small Business Banking and Middle Market Banking, including national awards for Overall Satisfaction and Likelihood to Recommend. United was also named one of the "Best Banks to Work For" by American Banker in 2021 for the fifth consecutive year based on employee satisfaction. 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, which excludes merger-related and other charges that are not considered part of recurring operations, includes performance measures 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
