United Community Banks, Inc. Reports Third Quarter Results

GlobeNewswire
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
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.
(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
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
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
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.
2022
2021
For the Nine Months Ended September 30,
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
%
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
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
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)
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:
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,
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,
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.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
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.
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.
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

source: https://www.morningstar.com/news/globe-newswire/8667485/united-community-banks-inc-reports-third-quarter-results

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