• United Community Banks, Inc. Reports Fourth Quarter Results

    المصدر: Nasdaq GlobeNewswire / 18 يناير 2022 17:30:01   America/New_York

    GREENVILLE, S.C., Jan. 18, 2022 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the fourth quarter was $52.0 million and pre-tax, pre-provision income was $65.6 million. Diluted earnings per share of $0.55 for the quarter represented a decrease of $0.11 or 17%, from the fourth quarter a year ago, and represented a decrease of $0.27 or 33% from the third quarter of 2021. On an operating basis, United’s diluted earnings per share of $0.64 was down 6% from the year ago quarter. The primary driver of the reduced earnings in both periods is lower levels of accretion from PPP loans, as those loans have continued to decline due to success in executing the forgiveness process. Additionally, in the third quarter, charges associated with the Aquesta acquisition, such as merger charges and a $3.27 million provision to establish an initial allowance for credit losses for acquired Aquesta loans, reduced GAAP earnings by approximately $9 million or ten cents per share. On an operating basis, United’s ROA was 1.10% and its return on tangible common equity was 13.9%. On a pre-tax, pre-provision basis, operating return on assets was 1.40% for the quarter. Highlights for the quarter include strong annualized organic loan growth (excluding PPP and loans received through the Aquesta acquisition) of 7% and 17% annualized organic deposit growth.

    Chairman and CEO Lynn Harton stated, “We are very pleased by United’s performance this quarter and in 2021. In the quarter, both loan and deposit growth were strong and noninterest income benefited from strong, but seasonally lower, mortgage production and a great SBA quarter.” Harton continued, “On the strategic front, we completed the acquisition of Aquesta Financial Holdings, Inc. and Aquesta Bank on October 1, boosting our Charlotte presence and adding the Wilmington, North Carolina market, both of which are growth markets that fit well with our footprint and culture. We also completed the operational conversion of Aquesta in mid-November, bringing the United brand to these great markets. We are proud that this outstanding team of bankers has joined us and we believe that they are a great fit for United.  Finally, while not included in the quarterly results, on January 1 we completed the acquisition of Reliant Bancorp, Inc., expanding our Tennessee presence into the fast-growing Nashville MSA with a very high performance organization.”

    Total loans increased by $569 million during the quarter—impacted by $501 million of loans from the Aquesta acquisition. Excluding the effect of PPP loans and loans received from the Aquesta acquisition, core organic loan growth was 7% annualized. Core transaction deposits grew by $948 million during the quarter, or 28% annualized. Excluding deposits received from the Aquesta acquisition, core transaction deposits grew by 10% annualized. United’s cost of deposits decreased by 1 basis point to 0.06%. The net interest margin decreased by 31 basis points from the third quarter due mainly to lower PPP loan fee accretion and an increase in liquid assets due to the continued deposit growth.

    Mr. Harton concluded, “I believe 2022 will be another great year for United. We enter the year with strong business momentum, led by an outstanding team of engaged bankers throughout the company. I am very proud that in October, and for the fifth consecutive year, United was named one of the Best Banks to Work for in 2021 across the nation by American Banker. One of our most important measures of success for us is to “Be a Great Place to Work for Great People”. Banking is a service and experience business and success begins with creating an organization where the best people can be fulfilled and build a career.”

    2021 Financial Highlights:

    • Full year EPS of $2.97, an increase of 55% compared to 2020; full year operating EPS of $3.09, an increase of 56% from 2020
    • Return on assets of 1.37%, or 1.42% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.65% on an operating basis
    • Return on common equity of 13.1%
    • Return on tangible common equity of 17.3% on an operating basis
    • Completed the mergers with FinTrust on July 1 and Aquesta Financial Corporation and its bank subsidiary Aquesta Bank on October 1
    • A release of provision for credit losses of $37.6 million compared to a provision of $80.4 million in 2020, mostly due to the improved economic forecasts
    • Loan growth of $389 million or $346 million excluding loans acquired from Aquesta and PPP payoffs
    • Core transaction deposits were up $2.8 billion compared to 2020; excluding Aquesta, 2021 core transaction deposits were up $2.2 billion, or 19.2%
    • Net interest margin of 3.07%, which was down 48 basis points from last year due to a number of factors, including lower PPP fee accretion, the low rate environment, and increasing balance sheet liquidity
    • Continued strong mortgage rate locks of $3.1 billion compared to a record of $3.3 billion a year ago
    • Noninterest income was up $1.7 million or 1% as an increase in wealth management fees and gains from loan sales offset the $17.6 million decline in mortgage fees
    • Efficiency ratio of 55.8%, or 53.8% on an operating basis
    • Net charge-offs of $38,000

    Fourth Quarter 2021 Financial Highlights:

    • Net income of $52.0 million and pre-tax, pre-provision income of $65.6 million
    • EPS decreased by 17% compared to fourth quarter 2020 on a GAAP basis and 6% on an operating basis; compared to third quarter 2021, EPS decreased by 33% on a GAAP basis and 23% on an operating basis due to lower PPP accretion and a smaller provision release in the fourth quarter
    • Return on assets of 0.96%, or 1.10% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.40% on an operating basis
    • Return on common equity of 9.3%
    • Return on tangible common equity of 13.9% on an operating basis
    • A release of provision for credit losses of $647,000 which reduced the allowance for loan losses to 0.87% of loans from 0.89% in the third quarter
    • Loan production of $1.3 billion, resulting in core loan growth of 7%, annualized for the quarter, excluding the impact of $122 million in PPP loans being forgiven and the addition of $501 million in loans from Aquesta
    • Core transaction deposits were up $948 million; excluding Aquesta, fourth quarter core transaction deposits grew $333 million or 10% annualized
    • Net interest margin of 2.81% was down 31 basis points from the third quarter, due to lower PPP fee accretion, continued strong deposit growth and an earning asset mix change toward cash and securities
    • Mortgage closings of $522 million compared to $609 million a year ago; mortgage rate locks of $695 million compared to $792 million a year ago
    • Noninterest income was down $2.9 million on a linked quarter basis, primarily driven by lower mortgage fees
    • Noninterest expenses increased by $12.4 million compared to the third quarter on a GAAP basis and by $3.9 million on an operating basis, mostly due to adding the operating expenses of Aquesta which was acquired on October 1
    • Efficiency ratio of 62.1%, or 56.5% on an operating basis
    • Net charge-offs of $248,000 or 1 basis point as a percent of average loans, down 1 basis point from the net charge-offs experienced in the third quarter
    • Nonperforming assets of 0.16% of total assets, down 7 basis points compared to September 30, 2021
    • Quarterly common shareholder dividend of $0.20 per share declared during the quarter, an increase of 11% year-over-year
    • Completed the acquisition of Aquesta Financial Holdings, Inc. (“Aquesta”) with $756 million in assets on October 1, 2021; this acquisition is expected to add $0.08 in EPS accretion in 2022 with cost savings fully phased in
    • Completed the acquisition of Reliant Bancorp, Inc. (“Reliant”) with $3.0 billion in assets on January 1, 2022; this acquisition is expected to add $0.15 in EPS accretion in 2022 and $0.22 in 2023 with cost savings fully phased in

    Conference Call

    United will hold a conference call on Wednesday, January 19, 2022, at 11 a.m. ET 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/10162699/f0590f1c98. 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 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.
    Selected Financial Information
    (in thousands, except per share data)
      2021
    		 2020 Fourth
    Quarter
    2021- 2020
    Change
    		 For the Twelve Months Ended December 31, YTD
    2021- 2020
    Change
      Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		  2021 2020 
    INCOME SUMMARY                  
    Interest revenue $143,768  $147,675  $145,809  $141,542  $156,071    $578,794  $557,996   
    Interest expense  6,213   6,636   7,433   9,478   10,676     29,760   56,237   
    Net interest revenue  137,555   141,039   138,376   132,064   145,395  (5)%  549,034   501,759  9%
    (Release of) provision for credit losses  (647)  (11,034)  (13,588)  (12,281)  2,907     (37,550)  80,434   
    Noninterest income  37,177   40,095   35,841   44,705   41,375  (10)  157,818   156,109  1 
    Total revenue  175,379   192,168   187,805   189,050   183,863  (5)  744,402   577,434  29 
    Expenses  109,156   96,749   95,540   95,194   106,490  3   396,639   367,989  8 
    Income before income tax expense  66,223   95,419   92,265   93,856   77,373     347,763   209,445   
    Income tax expense  14,204   21,603   22,005   20,150   17,871     77,962   45,356   
    Net income  52,019   73,816   70,260   73,706   59,502     269,801   164,089   
    Merger-related and other charges  9,912   1,437   1,078   1,543   2,452     13,970   7,018   
    Income tax benefit of merger-related and other charges  (2,265)  (328)  (246)  (335)  (552)    (3,174)  (1,340)  
    Net income - operating (1) $59,666  $74,925  $71,092  $74,914  $61,402  (3) $280,597  $169,767  65 
                       
    Pre-tax pre-provision income (5) $65,576  $84,385  $78,677  $81,575  $80,280  (18) $310,213  $289,879  7 
                       
    PERFORMANCE MEASURES                  
    Per common share:                  
    Diluted net income - GAAP $0.55  $0.82  $0.78  $0.82  $0.66  (17) $2.97  $1.91  55 
    Diluted net income - operating (1)  0.64   0.83   0.79   0.83   0.68  (6)  3.09   1.98  56 
    Common stock cash dividends declared  0.20   0.20   0.19   0.19   0.18  11   0.78   0.72  8 
    Book value  23.63   23.25   22.81   22.15   21.90  8   23.63   21.90  8 
    Tangible book value (3)  18.42   18.68   18.49   17.83   17.56  5   18.42   17.56  5 
    Key performance ratios:                  
    Return on common equity - GAAP (2)(4)  9.32%  14.26%  14.08%  15.37%  12.36%    13.14%  9.25%  
    Return on common equity - operating (1)(2)(4)  10.74   14.48   14.25   15.63   12.77     13.68   9.58   
    Return on tangible common equity - operating (1)(2)(3)(4)  13.93   18.23   17.81   19.68   16.23     17.33   12.24   
    Return on assets - GAAP (4)  0.96   1.48   1.46   1.62   1.30     1.37   1.04   
    Return on assets - operating (1)(4)  1.10   1.50   1.48   1.65   1.34     1.42   1.07   
    Return on assets -pre-tax pre-provision (4)(5)  1.21   1.70   1.64   1.80   1.77     1.58   1.85   
    Return on assets -pre-tax pre-provision, excluding
    merger related and other charges (1)(4)(5)    		  1.40   1.73   1.67   1.83   1.82     1.65   1.90   
    Net interest margin (fully taxable equivalent) (4)  2.81   3.12   3.19   3.22   3.55     3.07   3.55   
    Efficiency ratio - GAAP  62.12   53.11   54.53   53.55   56.73     55.80   55.71   
    Efficiency ratio - operating (1)  56.48   52.33   53.92   52.68   55.42     53.83   54.64   
    Equity to total assets  10.61   10.89   11.04   10.95   11.29     10.61   11.29   
    Tangible common equity to tangible assets (3)  8.09   8.53   8.71   8.57   8.81     8.09   8.81   
    ASSET QUALITY                  
    Nonperforming loans $32,812  $44,923  $46,123  $55,900  $61,599  (47) $32,812  $61,599  (47)
    Foreclosed properties  43   412   224   596   647  (93)  43   647  (93)
    Total nonperforming assets (“NPAs”)  32,855   45,335   46,347   56,496   62,246  (47)  32,855   62,246  (47)
    Allowance for credit losses - loans and leases  102,532   99,620   111,616   126,866   137,010  (25)  102,532   137,010  (25)
    Allowance for credit losses - total  113,524   110,875   122,460   135,592   147,568  (23)  113,524   147,568  (23)
    Net charge-offs  248   551   (456)  (305)  1,515  (84)  38   18,316  (100)
    Allowance for credit losses - loans and leases to loans  0.87%  0.89%  0.98%  1.09%  1.20%    0.87%  1.20%  
    Allowance for credit losses - total to loans  0.97   0.99   1.08   1.16   1.30     0.97   1.30   
    Net charge-offs to average loans (4)  0.01   0.02   (0.02)  (0.01)  0.05     —   0.17   
    NPAs to loans and foreclosed properties  0.28   0.41   0.41   0.48   0.55     0.28   0.55   
    NPAs to total assets  0.16   0.23   0.25   0.30   0.35     0.16   0.35   
    AVERAGE BALANCES ($ in millions)                  
    Loans $11,689  $11,205  $11,617  $11,433  $11,595  1  $11,486  $10,467  10 
    Investment securities  5,544   5,122   4,631   3,991   3,326  67   4,830   2,752  76 
    Earning assets  19,542   18,078   17,540   16,782   16,394  19   17,996   14,226  27 
    Total assets  20,863   19,322   18,792   18,023   17,698  18   19,258   15,467  25 
    Deposits  18,037   16,637   16,132   15,366   15,057  20   16,550   13,135  26 
    Shareholders’ equity  2,223   2,119   2,060   2,025   1,994  11   2,107   1,821  16 
    Common shares - basic (thousands)  89,916   87,211   87,289   87,322   87,258  3   87,940   83,184  6 
    Common shares - diluted (thousands)  90,089   87,355   87,421   87,466   87,333  3   88,097   83,248  6 
    AT PERIOD END ($ in millions)                  
    Loans $11,760  $11,191  $11,391  $11,679  $11,371  3  $11,760  $11,371  3 
    Investment securities  5,653   5,335   4,928   4,332   3,645  55   5,653   3,645  55 
    Total assets  20,947   19,481   18,896   18,557   17,794  18   20,947   17,794  18 
    Deposits  18,241   16,865   16,328   15,993   15,232  20   18,241   15,232  20 
    Shareholders’ equity  2,222   2,122   2,086   2,031   2,008  11   2,222   2,008  11 
    Common shares outstanding (thousands)  89,350   86,559   86,665   86,777   86,675  3   89,350   86,675  3 

    (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)
      2021
    		 2020 Twelve Months Ended
    December 31,
      Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 2021 2020
    Expense reconciliation              
    Expenses (GAAP) $109,156  $96,749  $95,540  $95,194  $106,490  $396,639  $367,989 
    Merger-related and other charges  (9,912)  (1,437)  (1,078)  (1,543)  (2,452)  (13,970)  (7,018)
    Expenses - operating $99,244  $95,312  $94,462  $93,651  $104,038  $382,669  $360,971 
                   
    Net income to operating income reconciliation              
    Net income (GAAP) $52,019  $73,816  $70,260  $73,706  $59,502  $269,801  $164,089 
    Merger-related and other charges  9,912   1,437   1,078   1,543   2,452   13,970   7,018 
    Income tax benefit of merger-related and other charges  (2,265)  (328)  (246)  (335)  (552)  (3,174)  (1,340)
    Net income - operating $59,666  $74,925  $71,092  $74,914  $61,402  $280,597  $169,767 
                   
    Net income to pre-tax pre-provision income reconciliation              
    Net income (GAAP) $52,019  $73,816  $70,260  $73,706  $59,502  $269,801  $164,089 
    Income tax expense  14,204   21,603   22,005   20,150   17,871   77,962   45,356 
    (Release of) provision for credit losses  (647)  (11,034)  (13,588)  (12,281)  2,907   (37,550)  80,434 
    Pre-tax pre-provision income $65,576  $84,385  $78,677  $81,575  $80,280  $310,213  $289,879 
                   
    Diluted income per common share reconciliation              
    Diluted income per common share (GAAP) $0.55  $0.82  $0.78  $0.82  $0.66  $2.97  $1.91 
    Merger-related and other charges  0.09   0.01   0.01   0.01   0.02   0.12   0.07 
    Diluted income per common share - operating $0.64  $0.83  $0.79  $0.83  $0.68  $3.09  $1.98 
                   
    Book value per common share reconciliation              
    Book value per common share (GAAP) $23.63  $23.25  $22.81  $22.15  $21.90  $23.63  $21.90 
    Effect of goodwill and other intangibles  (5.21)  (4.57)  (4.32)  (4.32)  (4.34)  (5.21)  (4.34)
    Tangible book value per common share $18.42  $18.68  $18.49  $17.83  $17.56  $18.42  $17.56 
                   
    Return on tangible common equity reconciliation              
    Return on common equity (GAAP)  9.32%  14.26%  14.08%  15.37%  12.36%  13.14%  9.25%
    Merger-related and other charges  1.42   0.22   0.17   0.26   0.41   0.54   0.33 
    Return on common equity - operating  10.74   14.48   14.25   15.63   12.77   13.68   9.58 
    Effect of goodwill and other intangibles  3.19   3.75   3.56   4.05   3.46   3.65   2.66 
    Return on tangible common equity - operating  13.93%  18.23%  17.81%  19.68%  16.23%  17.33%  12.24%
                   
    Return on assets reconciliation              
    Return on assets (GAAP)  0.96%  1.48%  1.46%  1.62%  1.30%  1.37%  1.04%
    Merger-related and other charges  0.14   0.02   0.02   0.03   0.04   0.05   0.03 
    Return on assets - operating  1.10%  1.50%  1.48%  1.65%  1.34%  1.42%  1.07%
                   
    Return on assets to return on assets- pre-tax pre-provision reconciliation              
    Return on assets (GAAP)  0.96%  1.48%  1.46%  1.62%  1.30%  1.37%  1.04%
    Income tax expense  0.26   0.45   0.47   0.46   0.40   0.40   0.29 
    (Release of) provision for credit losses  (0.01)  (0.23)  (0.29)  (0.28)  0.07   (0.19)  0.52 
    Return on assets - pre-tax pre-provision  1.21   1.70   1.64   1.80   1.77   1.58   1.85 
    Merger-related and other charges  0.19   0.03   0.03   0.03   0.05   0.07   0.05 
    Return on assets - pre-tax pre-provision, excluding merger-related and other charges  1.40%  1.73%  1.67%  1.83%  1.82%  1.65%  1.90%
                   
    Efficiency ratio reconciliation              
    Efficiency ratio (GAAP)  62.12%  53.11%  54.53%  53.55%  56.73%  55.80%  55.71%
    Merger-related and other charges  (5.64)  (0.78)  (0.61)  (0.87)  (1.31)  (1.97)  (1.07)
    Efficiency ratio - operating  56.48%  52.33%  53.92%  52.68%  55.42%  53.83%  54.64%
                   
    Tangible common equity to tangible assets reconciliation              
    Equity to total assets (GAAP)  10.61%  10.89%  11.04%  10.95%  11.29%  10.61%  11.29%
    Effect of goodwill and other intangibles  (2.06)  (1.87)  (1.82)  (1.86)  (1.94)  (2.06)  (1.94)
    Effect of preferred equity  (0.46)  (0.49)  (0.51)  (0.52)  (0.54)  (0.46)  (0.54)
    Tangible common equity to tangible assets  8.09%  8.53%  8.71%  8.57%  8.81%  8.09%  8.81%
                   
    Allowance for credit losses - loans to loans reconciliation              
    Allowance for credit losses - loans to loans (GAAP)  0.87%  0.89%  0.98%  1.09%  1.20%  0.87%  1.20%
    Effect of PPP loans  0.01   0.01   0.04   0.09   0.08   0.01   0.08 
    Allowance for credit losses - loans to loans, excluding PPP loans  0.88%  0.90%  1.02%  1.18%  1.28%  0.88%  1.28%
                                 


                 
    UNITED COMMUNITY BANKS, INC.
    Financial Highlights
    Loan Portfolio Composition at Period-End
    (in millions)
     2021
    		 2020
    		 Linked
    Quarter
    Change
    		 Year over
    Year
    Change
     Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		  
    LOANS BY CATEGORY             
    Owner occupied commercial RE$2,322  $2,149  $2,149  $2,107  $2,090  $173  $232 
    Income producing commercial RE 2,601   2,542   2,550   2,599   2,541   59   60 
    Commercial & industrial 1,822   1,729   1,762   1,760   1,853   93   (31)
    Paycheck protection program 88   150   472   883   646   (62)  (558)
    Commercial construction 1,015   947   927   960   967   68   48 
    Equipment financing 1,083   1,017   969   913   864   66   219 
    Total commercial 8,931   8,534   8,829   9,222   8,961   397   (30)
    Residential mortgage 1,638   1,533   1,473   1,362   1,285   105   353 
    Home equity lines of credit 694   661   661   679   697   33   (3)
    Residential construction 359   321   289   272   281   38   78 
    Consumer 138   142   139   144   147   (4)  (9)
    Total loans$11,760  $11,191  $11,391  $11,679  $11,371  $569  $389 
                  
    LOANS BY MARKET (1)             
    North Georgia$944  $961  $962  $982  $955  $(17) $(11)
    Atlanta 2,030   1,930   1,938   1,953   1,889   100   141 
    North Carolina 1,895   1,427   1,374   1,326   1,281   468   614 
    Coastal Georgia 588   621   605   597   617   (33)  (29)
    Gainesville 216   220   224   222   224   (4)  (8)
    East Tennessee 373   383   394   398   415   (10)  (42)
    South Carolina 2,235   2,145   2,107   1,997   1,947   90   288 
    Florida 1,148   1,113   1,141   1,160   1,435   35   (287)
    Commercial Banking Solutions 2,331   2,391   2,646   3,044   2,608   (60)  (277)
    Total loans$11,760  $11,191  $11,391  $11,679  $11,371  $569  $389 
                                


     
    UNITED COMMUNITY BANKS, INC.
    Financial Highlights
    Loan Portfolio Composition at Year-End
    (in millions)
     2021
    		 2020
    		 2019
    		 2018
    		 2017
    LOANS BY CATEGORY         
    Owner occupied commercial RE$2,322  $2,090  $1,720  $1,648  $1,924 
    Income producing commercial RE 2,601   2,541   2,008   1,812   1,595 
    Commercial & industrial 1,822   1,853   1,221   1,278   1,131 
    Paycheck protection program 88   646   —   —   — 
    Commercial construction 1,015   967   976   796   712 
    Equipment financing 1,083   864   745   565   — 
    Total commercial 8,931   8,961   6,670   6,099   5,362 
    Residential mortgage 1,638   1,285   1,118   1,049   974 
    Home equity lines of credit 694   697   661   694   731 
    Residential construction 359   281   236   211   183 
    Consumer 138   147   128   330   486 
    Total loans$11,760  $11,371  $8,813  $8,383  $7,736 
              
    LOANS BY MARKET         
    North Georgia$944  $955  $967  $981  $1,019 
    Atlanta 2,030   1,889   1,762   1,507   1,510 
    North Carolina 1,895   1,281   1,156   1,072   1,049 
    Coastal Georgia 588   617   631   588   630 
    Gainesville 216   224   246   247   248 
    East Tennessee 373   415   421   477   475 
    South Carolina 2,235   1,947   1,708   1,645   1,486 
    Florida 1,148   1,435   —   —   — 
    Commercial Banking Solutions 2,331   2,608   1,922   1,658   961 
    Indirect auto —   —   —   208   358 
    Total loans$11,760  $11,371  $8,813  $8,383  $7,736 
                        


     
    UNITED COMMUNITY BANKS, INC.
    Financial Highlights
    Credit Quality
    (in thousands)
      2021
      Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter
    NONACCRUAL LOANS      
    Owner occupied RE $2,714  $4,945  $6,128 
    Income producing RE  7,588   13,462   13,100 
    Commercial & industrial  5,429   8,507   8,563 
    Commercial construction  343   1,202   1,229 
    Equipment financing  1,741   1,845   1,771 
    Total commercial  17,815   29,961   30,791 
    Residential mortgage  13,313   13,222   13,485 
    Home equity lines of credit  1,212   1,364   1,433 
    Residential construction  420   260   307 
    Consumer  52   116   107 
    Total $32,812  $44,923  $46,123 
                 


      2021
      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 $(255) (0.04)% $(93) (0.02)% $(103) (0.02)%
    Income producing RE  (98) (0.01)  45  0.01   (213) (0.03)
    Commercial & industrial  339  0.07   (91) (0.02)  60  0.01 
    Commercial construction  (354) (0.14)  (123) (0.05)  (293) (0.12)
    Equipment financing  781  0.29   512  0.21   301  0.13 
    Total commercial  413  0.02   250  0.01   (248) (0.01)
    Residential mortgage  (169) (0.04)  51  0.01   (194) (0.05)
    Home equity lines of credit  (118) (0.07)  (102) (0.06)  (112) (0.07)
    Residential construction  (17) (0.02)  (37) (0.05)  (33) (0.05)
    Consumer  139  0.39   389  1.11   131  0.37 
    Total $248  0.01  $551  0.02  $(456) (0.02)
                 
    (1) Annualized.
     


     
    UNITED COMMUNITY BANKS, INC.
    Consolidated Balance Sheets (Unaudited)
    (in thousands, except share and per share data)


      December 31, 2021 December 31, 2020
    ASSETS    
    Cash and due from banks $144,244  $148,896 
    Interest-bearing deposits in banks  2,147,266   1,459,723 
    Federal funds and other short-term investments  27,000   — 
    Cash and cash equivalents  2,318,510   1,608,619 
    Debt securities available-for-sale  4,496,824   3,224,721 
    Debt securities held-to-maturity (fair value $1,148,804 and $437,193, respectively)  1,156,098   420,361 
    Loans held for sale at fair value  44,109   105,433 
    Loans and leases held for investment  11,760,346   11,370,815 
    Less allowance for credit losses - loans and leases  (102,532)  (137,010)
    Loans and leases, net  11,657,814   11,233,805 
    Premises and equipment, net  245,296   218,489 
    Bank owned life insurance  217,713   201,969 
    Accrued interest receivable  42,999   47,672 
    Net deferred tax asset  41,322   38,411 
    Derivative financial instruments  42,480   86,666 
    Goodwill and other intangible assets, net  472,407   381,823 
    Other assets  211,199   226,405 
    Total assets $20,946,771  $17,794,374 
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    Liabilities:    
    Deposits:    
    Noninterest-bearing demand $6,956,981  $5,390,291 
    NOW and interest-bearing demand  4,252,209   3,346,490 
    Money market  4,183,354   3,550,335 
    Savings  1,215,779   950,854 
    Time  1,442,498   1,704,290 
    Brokered  190,358   290,098 
    Total deposits  18,241,179   15,232,358 
    Long-term debt  247,360   326,956 
    Derivative financial instruments  25,145   29,003 
    Accrued expenses and other liabilities  210,842   198,527 
    Total liabilities  18,724,526   15,786,844 
    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   96,422 
    Common stock, $1 par value; 200,000,000 and 150,000,000 shares authorized, respectively;
    89,349,826 and 86,675,279 shares issued and outstanding, respectively    		  89,350   86,675 
    Common stock issuable; 595,705 and 600,834 shares, respectively  11,288   10,855 
    Capital surplus  1,721,007   1,638,999 
    Retained earnings  330,654   136,869 
    Accumulated other comprehensive (loss) income  (26,476)  37,710 
    Total shareholders’ equity  2,222,245   2,007,530 
    Total liabilities and shareholders’ equity $20,946,771  $17,794,374 
             


     
    UNITED COMMUNITY BANKS, INC.
    Consolidated Statements of Income (Unaudited)
    (in thousands, except per share data)


      Three Months Ended December 31, Twelve Months Ended December 31,
      2021 2020
    		 2021 2020
    Interest revenue:        
    Loans, including fees $123,473  $141,351  $505,734  $494,212 
    Investment securities, including tax exempt of $2,293, $2,055, $8,978 and $7,043  19,442   14,507   70,972   62,074 
    Deposits in banks and short-term investments  853   213   2,088   1,710 
    Total interest revenue  143,768   156,071   578,794   557,996 
    Interest expense:        
    Deposits:        
    NOW and interest-bearing demand  1,310   1,495   5,468   7,735 
    Money market  1,102   2,196   5,380   13,165 
    Savings  60   48   217   169 
    Time  392   2,689   3,780   20,703 
    Deposits  2,864   6,428   14,845   41,772 
    Short-term borrowings  —   —   —   3 
    Federal Home Loan Bank advances  1   —   3   28 
    Long-term debt  3,348   4,248   14,912   14,434 
    Total interest expense  6,213   10,676   29,760   56,237 
    Net interest revenue  137,555   145,395   549,034   501,759 
    Provision for credit losses  (647)  2,907   (37,550)  80,434 
    Net interest revenue after provision for credit losses  138,202   142,488   586,584   421,325 
    Noninterest income:        
    Service charges and fees  8,613   8,508   33,868   32,401 
    Mortgage loan gains and related fees  10,910   18,974   58,446   76,087 
    Wealth management fees  6,117   3,221   18,998   9,240 
    Gains from other loan sales, net  3,761   1,531   11,267   5,420 
    Securities gains, net  42   2   83   748 
    Other  7,734   9,139   35,156   32,213 
    Total noninterest income  37,177   41,375   157,818   156,109 
    Total revenue  175,379   183,863   744,402   577,434 
    Noninterest expenses:        
    Salaries and employee benefits  60,986   61,824   241,443   224,060 
    Occupancy  7,489   7,082   28,619   25,791 
    Communications and equipment  7,850   7,687   29,829   27,149 
    FDIC assessments and other regulatory charges  1,878   1,594   7,398   5,982 
    Professional fees  6,080   4,029   20,589   18,032 
    Lending and loan servicing expense  2,351   2,468   10,859   10,993 
    Outside services - electronic banking  2,670   1,997   9,481   7,513 
    Postage, printing and supplies  1,939   1,793   7,110   6,779 
    Advertising and public relations  1,760   9,891   5,910   15,203 
    Amortization of intangibles  1,103   1,042   4,045   4,168 
    Merger-related and other charges  9,912   2,452   13,970   7,018 
    Other  5,138   4,631   17,386   15,301 
    Total noninterest expenses  109,156   106,490   396,639   367,989 
    Net income before income taxes  66,223   77,373   347,763   209,445 
    Income tax expense  14,204   17,871   77,962   45,356 
    Net income $52,019  $59,502  $269,801  $164,089 
    Preferred stock dividends  1,718   1,719   6,875   3,533 
    Earnings allocated to participating securities  317   532   1,657   1,287 
    Net income available to common shareholders $49,984  $57,251  $261,269  $159,269 
             
    Net income per common share:        
    Basic $0.56  $0.66  $2.97  $1.91 
    Diluted  0.55   0.66   2.97   1.91 
    Weighted average common shares outstanding:        
    Basic  89,916   87,258   87,940   83,184 
    Diluted  90,089   87,333   88,097   83,248 
                     


     
    UNITED COMMUNITY BANKS, INC.
    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Three Months Ended December 31,
    (dollars in thousands, fully taxable equivalent (FTE))


      2021
    		 2020
      Average
    Balance    		 Interest Average
    Rate    		 Average
    Balance    		 Interest Average
    Rate
    Assets:            
    Interest-earning assets:            
    Loans, net of unearned income (FTE) (1)(2) $11,689,412  $123,250  4.18% $11,595,484  $140,687  4.83%
    Taxable securities (3)  5,156,563   17,149  1.33   3,039,275   12,452  1.64 
    Tax-exempt securities (FTE) (1)(3)  387,638   3,080  3.18   286,490   2,759  3.85 
    Federal funds sold and other interest-earning assets  2,308,241   1,322  0.23   1,472,668   1,132  0.31 
    Total interest-earning assets (FTE)  19,541,854   144,801  2.94   16,393,917   157,030  3.81 
                 
    Noninterest-earning assets:            
    Allowance for loan losses  (103,167)      (138,313)    
    Cash and due from banks  141,967       143,694     
    Premises and equipment  245,869       218,349     
    Other assets (3)  1,036,760       1,080,180     
    Total assets $20,863,283      $17,697,827     
                 
    Liabilities and Shareholders’ Equity:            
    Interest-bearing liabilities:            
    Interest-bearing deposits:            
    NOW and interest-bearing demand $4,080,621   1,310  0.13  $3,281,984   1,495  0.18 
    Money market  4,323,851   1,102  0.10   3,698,734   2,196  0.24 
    Savings  1,187,134   60  0.02   918,623   48  0.02 
    Time  1,461,231   567  0.15   1,748,099   2,711  0.62 
    Brokered time deposits  65,556   (175) (1.06)  83,750   (22) (0.10)
    Total interest-bearing deposits  11,118,393   2,864  0.10   9,731,190   6,428  0.26 
    Federal funds purchased and other borrowings  51   —  —   54   —  — 
    Federal Home Loan Bank advances  1,426   1  0.28   —   —  — 
    Long-term debt  247,251   3,348  5.37   327,236   4,248  5.16 
    Total borrowed funds  248,728   3,349  5.34   327,290   4,248  5.16 
    Total interest-bearing liabilities  11,367,121   6,213  0.22   10,058,480   10,676  0.42 
                 
    Noninterest-bearing liabilities:            
    Noninterest-bearing deposits  6,918,279       5,325,858     
    Other liabilities  354,665       319,158     
    Total liabilities  18,640,065       15,703,496     
    Shareholders’ equity  2,223,218       1,994,331     
    Total liabilities and shareholders’ equity $20,863,283      $17,697,827     
                 
    Net interest revenue (FTE)   $138,588      $146,354   
    Net interest-rate spread (FTE)     2.72%     3.39%
    Net interest margin (FTE) (4)     2.81%     3.55%

    (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 losses of $1.64 million in 2021 and pretax unrealized gains of $72.6 million in 2020 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.

     
    UNITED COMMUNITY BANKS, INC.
    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Twelve Months Ended December 31,
    (dollars in thousands, fully taxable equivalent (FTE))


      2021
    		 2020
      Average
    Balance    		 Interest Average
    Rate    		 Average
    Balance    		 Interest Average
    Rate
    Assets:            
    Interest-earning assets:            
    Loans, net of unearned income (FTE) (1)(2) $11,485,876  $504,015  4.39% $10,466,653  $492,223  4.70%
    Taxable securities (3)  4,446,712   61,994  1.39   2,532,750   55,031  2.17 
    Tax-exempt securities (FTE) (1)(3)  382,915   12,059  3.15   219,668   9,458  4.31 
    Federal funds sold and other interest-earning assets  1,680,151   4,784  0.28   1,007,059   4,753  0.47 
    Total interest-earning assets (FTE)  17,995,654   582,852  3.24   14,226,130   561,465  3.95 
                 
    Non-interest-earning assets:            
    Allowance for loan losses  (121,586)      (106,812)    
    Cash and due from banks  139,728       136,702     
    Premises and equipment  230,276       217,751     
    Other assets (3)  1,013,956       993,584     
    Total assets $19,258,028      $15,467,355     
                 
    Liabilities and Shareholders’ Equity:            
    Interest-bearing liabilities:            
    Interest-bearing deposits:            
    NOW and interest-bearing demand $3,610,601   5,468  0.15  $2,759,383   7,735  0.28 
    Money market  3,972,358   5,380  0.14   3,023,928   13,165  0.44 
    Savings  1,095,071   217  0.02   821,344   169  0.02 
    Time  1,529,072   3,663  0.24   1,832,319   20,146  1.10 
    Brokered time deposits  67,230   117  0.17   97,788   557  0.57 
    Total interest-bearing deposits  10,274,332   14,845  0.14   8,534,762   41,772  0.49 
    Federal funds purchased and other borrowings  44   —  —   1,220   3  0.25 
    Federal Home Loan Bank advances  1,195   3  0.25   749   28  3.74 
    Long-term debt  276,492   14,912  5.39   274,069   14,434  5.27 
    Total borrowed funds  277,731   14,915  5.37   276,038   14,465  5.24 
    Total interest-bearing liabilities  10,552,063   29,760  0.28   8,810,800   56,237  0.64 
                 
    Noninterest-bearing liabilities:            
    Noninterest-bearing deposits  6,276,094       4,600,152     
    Other liabilities  322,566       235,120     
    Total liabilities  17,150,723       13,646,072     
    Shareholders’ equity  2,107,305       1,821,283     
    Total liabilities and shareholders’ equity $19,258,028      $15,467,355     
                 
    Net interest revenue (FTE)   $553,092      $505,228   
    Net interest-rate spread (FTE)     2.96%     3.31%
    Net interest margin (FTE) (4)     3.07%     3.55%

    (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 $28.7 million in 2021 and $67.3 million in 2020 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. The company, known as “The Bank That SERVICE Built,” has been recognized nationally for delivering award-winning service. At December 31, 2021, United had $20.9 billion in assets and 171 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. Through its January 1, 2022 acquisition of Reliant Bancorp and its wholly-owned banking subsidiary, Reliant Bank, United added $3 billion in assets and 25 banking offices in high growth markets in Tennessee. In 2021, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking seven out of the last eight years United earned the coveted award. 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. 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 2021 list of the 100 Best Banks in America for the eighth consecutive year. United also received five Greenwich Excellence Awards in 2020 for excellence in Small Business Banking, including a national award for Overall 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 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.

    Caution About Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, and include statements related to the accretive value of each of the Aquesta and Reliant acquisitions to United’s earnings. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.

    Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the Aquesta and Reliant acquisitions may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of the Aquesta and Reliant acquisitions, (3) the possibility that the costs, fees, expenses and charges related to the acquisition of Reliant may be greater than anticipated, (4) reputational risk and the reaction of the companies’ customers, suppliers, employees or other business partners to the acquisitions of Aquesta and Reliant, (5) the risks relating to the integration of Reliant’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risk of potential litigation or regulatory action related to the acquisitions of Aquesta and Reliant, (7) the risks associated with United’s pursuit of future acquisitions, (8) the risk of expansion into new geographic or product markets, (9) the dilution caused by United’s issuance of additional shares of its common stock in the acquisitions of Aquesta and Reliant, and (10) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2020, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

    Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United or Reliant.

    United qualifies all forward-looking statements by these cautionary statements.

    For more information:

    Jefferson Harralson
    Chief Financial Officer
    (864) 240-6208
    Jefferson_Harralson@ucbi.com

     


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