Market Overview

United Community Banks, Inc. Reports Second Quarter Results


GREENVILLE, S.C., July 23, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today announced its second quarter financial results, including solid year-over-year loan and deposit growth, improved operating efficiency and strong asset quality. Diluted earnings per share were $0.55, an increase of $0.06 or 12% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.59, up 11% over last year. United's return on assets ("ROA") was 1.40% and its return on common equity was 11.5% for the quarter. On an operating basis, United's ROA was 1.50% and its return on tangible common equity was 15.9%.

In the second quarter, loans grew at a 7% annualized rate, or at 9% annualized excluding the planned runoff of the discontinued indirect auto portfolio. With this loan growth and continued balance sheet remixing opportunities, United also benefitted from net interest margin expansion during the quarter. Core transaction deposits grew by $167 million, or 9% annualized, and total customer deposits increased by $129 million during the quarter.  All loan and deposit growth results noted above exclude the acquisition of First Madison Bank & Trust, which closed on May 1. Finally, United's combination of revenue growth and expense management resulted in a 57.28% efficiency ratio, or 54.42% on an operating basis, which represented a new Company best.

"Our United bankers continue to execute on our plans and deliver outstanding results," said Lynn Harton, Chairman and CEO of United. "I couldn't be more proud of what they are doing to deliver both world class customer service and top quartile financial performance. I am also pleased that First Madison Bank & Trust in Athens, Georgia is now officially part of the United team. We look forward to growing our business together in the attractive Athens, Georgia market."

Second Quarter 2019 Financial Highlights:

  • EPS growth of 12% versus last year, or 11% on an operating basis
  • Return on assets of 1.40%, or 1.50%, excluding merger-related and other charges
  • Return on common equity of 11.5%
  • Return on tangible common equity of 15.9%, excluding merger-related and other charges
  • Loan growth, excluding planned runoff of the indirect portfolio and the acquisition of First Madison Bank & Trust, of 9% on an annualized basis
  • Loan growth of $153 million which was more than funded by core transaction deposit growth of $167 million
  • Expansion of the net interest margin to 4.12%, up 2 basis points from the first quarter of 2019 and up 22 basis points from a year ago
  • Efficiency ratio of 57.3%, or 54.4%, excluding merger-related and other charges
  • Net charge-offs of 11 basis points, improved four basis points from last quarter and at historically low levels.
  • Nonperforming assets of 0.21% of total assets, compared with 0.20% at March 31, 2019 and 0.20% at June 30, 2018

Conference Call
United will hold a conference call, Wednesday, July 24, 2019, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 8388603. 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

UNITED COMMUNITY BANKS, INC.                                                      
Financial Highlights                                                      
Selected Financial Information                                                      
                                  Second   For the Six      
    2019       2018
    Quarter   Months Ended   YTD  
     Second      First      Fourth      Third      Second     2019-2018   June 30,   2019-2018  
(in thousands, except per share data)   Quarter     Quarter     Quarter     Quarter     Quarter      Change   2019       2018      Change  
INCOME SUMMARY                                                      
Interest revenue $ 139,156     $ 136,516     $ 133,854     $ 128,721     $ 122,215           $ 275,672     $ 237,505          
Interest expense   21,372       20,882       18,975       16,611       13,739             42,254       25,744          
Net interest revenue   117,784       115,634       114,879       112,110       108,476       9   %   233,418       211,761     10   %  
Provision for credit losses   3,250       3,300       2,100       1,800       1,800       81       6,550       5,600     17      
Noninterest income   24,531       20,968       23,045       24,180       23,340       5       45,499      
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