8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
January 22, 2019

UNITED COMMUNITY BANKS, INC.
(Exact name of registrant as specified in its charter)

Georgia	No. 001-35095	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

 125 Highway 515 East
Blairsville, Georgia 30512
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(706) 781-2265

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§240.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On January 22, 2019, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended December 31, 2018 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. In connection with issuing the News Release, on January 23, 2019 at 11:00 a.m. ET, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Fourth Quarter 2018 Investor Presentation (the “Investor Presentation”), which was posted to the Registrant’s website at www.ucbi.com on January 22, 2019. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

The presentation of the Registrant’s financial information contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. The financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted share,” “operating earnings per diluted share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating dividend payout ratio,” “operating efficiency ratio,” “average tangible equity to average assets,” “average tangible common equity to average assets” and “tangible common equity to risk-weighted assets.” These non-GAAP measures are included because Management believes they may provide useful supplemental information for evaluating the Registrant’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 in the News Release and the Investor Presentation attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
Exhibit No.	Description
99.1	News Release, dated January 22, 2019
99.2	Investor Presentation, Fourth Quarter 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	UNITED COMMUNITY BANKS, INC.
	By:	/s/ Jefferson L. Harralson
		Jefferson L. Harralson
		Executive Vice President and
		Chief Financial Officer
Date:  January 22, 2019

EX-99.1

Exhibit 99.1

For Immediate Release

For more information:

Jefferson Harralson

Chief Financial Officer

(864) 240-6208

Jefferson_Harralson@ucbi.com

United Community Banks, Inc. Announces Fourth Quarter Results

Return on Assets of 1.43% and Return on Common Equity of 12.08%

GREENVILLE, SC – January 22, 2019

United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, which reflected solid year-over-year loan and deposit growth, improving operating efficiency and continued strong asset quality. For the quarter, diluted earnings per share was $0.56 compared with a net loss of $0.16 per diluted share a year ago due to the impact of tax reform. Operating diluted earnings per share, which exclude merger-related and other charges, was $0.57, an increase of 36% over the previous year. Profitability ratios continued to be strong -- United ended the year with a 1.43% return on assets and a 12.08% return on common equity. On an operating basis, return on assets was 1.45% and return on tangible common equity was 15.88%.

Other key banking metrics were strong. The fourth quarter saw continued net interest margin expansion and 8% annualized loan growth, the strongest growth quarter in 2018. Deposit growth reflected the strength of United’s community banking franchise – total customer deposits increased $173 million for the fourth quarter and $414 million for the year. Mortgage production grew by nearly 4% compared to the fourth quarter last year and increased 20% for the full year compared to 2017. United’s SBA business also had a strong year, with production up 12% over 2017.

“The fourth quarter was a strong finish to an outstanding year,” said Lynn Harton, Chief Executive Officer. “Our full year return on assets was up 31 basis points on an operating basis and our operating earnings per share was up 31% over 2017. These impressive results do not come easily and are attributed to the hard work of our bankers, who continue to deliver the best service in the business. We are very pleased that their efforts are being recognized. Forbes included United on their list of the top 100 Best Banks in America for the fifth consecutive year. Additionally, for the fifth straight year, we earned the top ranking for overall customer satisfaction by JD Power; our service was ranked as highest in the Southeast. We were also honored by our recognition in the ‘Best Banks to Work For’ program by American Banker for the second year in a row. This is a measure of employee satisfaction for all banks in the country, and we could not be more pleased by our team’s show of support for United. The strength of our culture and the strong momentum we see in the business gives me confidence that we will continue our strong performance into 2019 and continue to build long-term shareholder value.”

1 

2018 Highlights:

· 2018 earnings per diluted share was $2.07, a 125% increase over 2017, which included the impact of tax reform

· Excluding merger-related and other charges and the 2017 impact of tax reform, earnings per diluted share for 2018 was $2.14 compared to $1.63 in 2017, an increase of 31%

· Return on average assets was 1.35% in 2018, an increase of 73 basis points from 2017

· Excluding merger-related and other charges and the 2017 impact of tax reform, return on average assets was 1.40%, an increase of 31 basis points from 2017

· Efficiency ratio of 57.31% in 2018 improved 264 basis points as compared to 2017

· Excluding merger-related and other charges, efficiency ratio of 55.94% improved 73 basis points as compared to 2017

· End of period loans grew $647 million in 2018, up 8% over December 31, 2017

· Common Equity Tier 1 ratio was 12.2% at December 31, 2018, compared to 12.0% at December 31, 2017

· Declared $0.58 per share in common dividends in 2018, up 53% over 2017

· Completed the acquisition of Navitas Credit Corporation on February 1, 2018

· Issued $100 million in subordinated debt in the first quarter and redeemed $7.4 million in high rate Trust Preferred securities in the fourth quarter

· Completed our CEO transition plan, elevating H. Lynn Harton into the role as Jimmy Tallent retired into the Executive Chairman position

· Added two new Board members, Jennifer Mann and Lance F. Drummond, adding significant experience and expertise to our oversight function

Fourth Quarter 2018 Financial Highlights:

· Return on assets of 1.43%, or 1.45% excluding merger-related and other charges

· Return on common equity of 12.1% or return on tangible common equity of 15.9%, which excludes merger-related and other charges

· Loan growth, excluding planned runoff of the indirect portfolio, of 10% on an annualized basis

· Loan production of $868 million, as compared to $644 million in the fourth quarter of 2017

· Expansion of the net interest margin to 3.97%, up two basis points from the third quarter of 2018 and up 34 basis points from a year ago

· Efficiency ratio of 56.73%, or 55.83% excluding merger-related and other charges

· Net charge offs of nine basis points, consistent with last quarter’s result of seven basis points

· Nonperforming assets of 0.20% of total assets, compared to 0.19% at September 30, 2018 and 0.23% at December 31, 2017

Conference Call

United will hold a conference call, Wednesday, January 23, 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 9381368. 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.

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UNITED COMMUNITY BANKS, INC.

Financial Highlights

Selected Financial Information

																Fourth			For the Twelve
	2018												2017			Quarter			Months Ended						YTD
	Fourth			Third			Second			First			Fourth			2018-2017			December 31,						2018-2017
(in thousands, except per share data)	Quarter			Quarter			Quarter			Quarter			Quarter			Change			2018			2017			Change
INCOME SUMMARY
Interest revenue	$	133,854		$	128,721		$	122,215		$	115,290		$	106,757					$	500,080		$	389,720
Interest expense		18,975			16,611			13,739			12,005			9,249						61,330			33,735
Net interest revenue		114,879			112,110			108,476			103,285			97,508			18	%		438,750			355,985			23	%
Provision for credit losses		2,100			1,800			1,800			3,800			1,200						9,500			3,800
Noninterest income		23,045			24,180			23,340			22,396			21,928			5			92,961			88,260			5
Total revenue		135,824			134,490			130,016			121,881			118,236			15			522,211			440,445			19
Expenses		78,242			77,718			76,850			73,475			75,882			3			306,285			267,611			14
Income before income tax expense		57,582			56,772			53,166			48,406			42,354			36			215,926			172,834			25
Income tax expense		12,445			13,090			13,532			10,748			54,270						49,815			105,013
Net income (loss)		45,137			43,682			39,634			37,658			(11,916	)					166,111			67,821
Merger-related and other charges		1,234			592			2,873			2,646			7,358						7,345			14,662
Income tax benefit of merger-related and other charges		(604	)		(141	)		(121	)		(628	)		(1,165	)					(1,494	)		(3,745	)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act		—			—			—			—			38,199						—			38,199
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—						—			3,400
Net income - operating (1)	$	45,767		$	44,133		$	42,386		$	39,676		$	32,476			41		$	171,962		$	120,337			43
PERFORMANCE MEASURES
Per common share:
Diluted net income (loss) - GAAP	$	0.56		$	0.54		$	0.49		$	0.47		$	(0.16	)				$	2.07		$	0.92
Diluted net income - operating (1)		0.57			0.55			0.53			0.50			0.42			36			2.14			1.63			31
Cash dividends declared		0.16			0.15			0.15			0.12			0.10			60			0.58			0.38			53
Book value		18.24			17.56			17.29			17.02			16.67			9			18.24			16.67			9
Tangible book value (3)		14.24			13.54			13.25			12.96			13.65			4			14.24			13.65			4
Key performance ratios:
Return on common equity - GAAP (2)(4)		12.08	%		11.96	%		11.20	%		11.11	%		(3.57	)%					11.60	%		5.67	%
Return on common equity - operating (1)(2)(4)		12.25			12.09			11.97			11.71			9.73						12.01			10.07
Return on tangible common equity - operating (1)(2)(3)(4)		15.88			15.81			15.79			15.26			11.93						15.69			12.02
Return on assets - GAAP (4)		1.43			1.41			1.30			1.26			(0.40	)					1.35			0.62
Return on assets - operating (1)(4)		1.45			1.42			1.39			1.33			1.10						1.40			1.09
Dividend payout ratio - GAAP		28.57			27.78			30.61			25.53			(62.50	)					28.02			41.30
Dividend payout ratio - operating (1)		28.07			27.27			28.30			24.00			23.81						27.10			23.31
Net interest margin (fully taxable equivalent) (4)		3.97			3.95			3.90			3.80			3.63						3.91			3.52
Efficiency ratio - GAAP		56.73			56.82			57.94			57.83			63.03						57.31			59.95
Efficiency ratio - operating (1)		55.83			56.39			55.77			55.75			56.92						55.94			56.67
Average equity to average assets		11.35			11.33			11.21			11.03			11.21						11.24			10.71
Average tangible equity to average assets (3)		9.04			8.97			8.83			8.82			9.52						8.92			9.29
Average tangible common equity to average assets (3)		9.04			8.97			8.83			8.82			9.52						8.92			9.29
Tangible common equity to risk-weighted assets (3)(5)		11.99			11.61			11.36			11.19			12.05						11.99			12.05
ASSET QUALITY
Nonperforming loans	$	23,778		$	22,530		$	21,817		$	26,240		$	23,658			1		$	23,778		$	23,658			1
Foreclosed properties		1,305			1,336			2,597			2,714			3,234			(60	)		1,305			3,234			(60	)
Total nonperforming assets (NPAs)		25,083			23,866			24,414			28,954			26,892			(7	)		25,083			26,892			(7	)
Allowance for loan losses		61,203			60,940			61,071			61,085			58,914			4			61,203			58,914			4
Net charge-offs		1,787			1,466			1,359			1,501			1,061			68			6,113			5,998			2
Allowance for loan losses to loans		0.73	%		0.74	%		0.74	%		0.75	%		0.76	%					0.73	%		0.76	%
Net charge-offs to average loans (4)		0.09			0.07			0.07			0.08			0.06						0.07			0.08
NPAs to loans and foreclosed properties		0.30			0.29			0.30			0.35			0.35						0.30			0.35
NPAs to total assets		0.20			0.19			0.20			0.24			0.23						0.20			0.23
AVERAGE BALANCES ($ in millions)
Loans	$	8,306		$	8,200		$	8,177		$	7,993		$	7,560			10		$	8,170		$	7,150			14
Investment securities		3,004			2,916			2,802			2,870			2,991			—			2,899			2,847			2
Earning assets		11,534			11,320			11,193			11,076			10,735			7			11,282			10,162			11
Total assets		12,505			12,302			12,213			12,111			11,687			7			12,284			11,015			12
Deposits		10,306			9,950			9,978			9,759			9,624			7			10,000			8,950			12
Shareholders’ equity		1,420			1,394			1,370			1,336			1,310			8			1,380			1,180			17
Common shares - basic (thousands)		79,884			79,806			79,753			79,205			76,768			4			79,662			73,247			9
Common shares - diluted (thousands)		79,890			79,818			79,755			79,215			76,768			4			79,671			73,259			9
AT PERIOD END ($ in millions)
Loans	$	8,383		$	8,226		$	8,220		$	8,184		$	7,736			8		$	8,383		$	7,736			8
Investment securities		2,903			2,873			2,834			2,731			2,937			(1	)		2,903			2,937			(1	)
Total assets		12,573			12,405			12,386			12,264			11,915			6			12,573			11,915			6
Deposits		10,535			10,229			9,966			9,993			9,808			7			10,535			9,808			7
Shareholders’ equity		1,458			1,402			1,379			1,357			1,303			12			1,458			1,303			12
Common shares outstanding (thousands)		79,234			79,202			79,138			79,123			77,580			2			79,234			77,580			2

⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation and a first quarter 2017 release of disproportionate tax effects lodged in OCI. ⁽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⁾ Fourth quarter 2018 ratio is preliminary.

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UNITED COMMUNITY BANKS, INC.

Selected Financial Information

For the Years Ended December 31,                  

(in thousands, except per share data)	2018			2017			2016			2015			2014
INCOME SUMMARY
Interest revenue	$	500,080		$	389,720		$	335,020		$	278,532		$	248,432
Interest expense		61,330			33,735			25,236			21,109			25,551
Net interest revenue		438,750			355,985			309,784			257,423			222,881
Provision for credit losses		9,500			3,800			(800	)		3,700			8,500
Noninterest income		92,961			88,260			93,697			72,529			55,554
Total revenue		522,211			440,445			404,281			326,252			269,935
Expenses		306,285			267,611			241,289			211,238			162,865
Income before income tax expense		215,926			172,834			162,992			115,014			107,070
Income tax expense (benefit)		49,815			105,013			62,336			43,436			39,450
Net income		166,111			67,821			100,656			71,578			67,620
Merger-related and other charges		7,345			14,662			8,122			17,995			-
Income tax benefit of merger-related and other charges		(1,494	)		(3,745	)		(3,074	)		(6,388	)		-
Impact of remeasurement of deferred tax asset resulting      from 2017 Tax Cuts and Jobs Act		-			38,199			-			-			-
Impairment of deferred tax asset on cancelled non-qualified stock options		-			-			976			-			-
Release of disproportionate tax effects lodged in OCI		-			3,400			-			-			-
Net income - operating (1)	$	171,962		$	120,337		$	106,680		$	83,185		$	67,620
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	2.07		$	0.92		$	1.40		$	1.09		$	1.11
Diluted net income - operating  (1)		2.14			1.63			1.48			1.27			1.11
Cash dividends declared		0.58			0.38			0.30			0.22			0.11
Book value		18.24			16.67			15.06			14.02			12.20
Tangible book value (3)		14.24			13.65			12.95			12.06			12.15
Key performance ratios:
Return on common equity - GAAP (2)		11.60	%		5.67	%		9.41	%		8.15	%		9.17	%
Return on common equity - operating (1)(2)		12.01			10.07			9.98			9.48			9.17
Return on tangible common equity - operating (1)(2)(3)		15.69			12.02			11.86			10.24			9.32
Return on assets - GAAP		1.35			0.62			1.00			0.85			0.91
Return on assets - operating (1)		1.40			1.09			1.06			0.98			0.91
Dividend payout ratio - GAAP		28.02			41.30			21.43			20.18			9.91
Dividend payout ratio - operating (1)		27.10			23.31			20.27			17.32			9.91
Net interest margin (fully taxable equivalent)		3.91			3.52			3.36			3.30			3.26
Efficiency ratio - GAAP		57.31			59.95			59.80			63.96			58.26
Efficiency ratio - operating  (1)		55.94			56.67			57.78			58.51			58.26
Average equity to average assets		11.24			10.71			10.54			10.27			9.69
Average tangible equity to average assets (3)		8.92			9.29			9.21			9.74			9.67
Average tangible common equity to average assets (3)		8.92			9.29			9.19			9.66			9.60
Tangible common equity to risk-weighted assets (3)(4)		11.99			12.05			11.84			12.82			13.82
ASSET QUALITY
Nonperforming loans	$	23,778		$	23,658		$	21,539		$	22,653		$	17,881
Foreclosed properties		1,305			3,234			7,949			4,883			1,726
Total nonperforming assets (NPAs)		25,083			26,892			29,488			27,536			19,607
Allowance for loan losses		61,203			58,914			61,422			68,448			71,619
Net charge-offs		6,113			5,998			6,766			6,259			13,879
Allowance for loan losses to loans		0.73	%		0.76	%		0.89	%		1.14	%		1.53	%
Net charge-offs to average loans		0.07			0.08			0.11			0.12			0.31
NPAs to loans and foreclosed properties		0.30			0.35			0.43			0.46			0.42
NPAs to total assets		0.20			0.23			0.28			0.29			0.26
AVERAGE BALANCES ($ in millions)
Loans	$	8,170		$	7,150		$	6,413		$	5,298		$	4,450
Investment securities		2,899			2,847			2,691			2,368			2,274
Earning assets		11,282			10,162			9,257			7,834			6,880
Total assets		12,284			11,015			10,054			8,462			7,436
Deposits		10,000			8,950			8,177			7,055			6,228
Shareholders’ equity		1,380			1,180			1,059			869			720
Common shares - basic (thousands)		79,662			73,247			71,910			65,488			60,588
Common shares - diluted (thousands)		79,671			73,259			71,915			65,492			60,590
AT PERIOD END ($ in millions)
Loans	$	8,383		$	7,736		$	6,921		$	5,995		$	4,672
Investment securities		2,903			2,937			2,762			2,656			2,198
Total assets		12,573			11,915			10,709			9,616			7,558
Deposits		10,535			9,808			8,638			7,873			6,335
Shareholders’ equity		1,458			1,303			1,076			1,018			740
Common shares outstanding (thousands)		79,234			77,580			70,899			71,484			60,259

⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, a 2017 release of disproportionate tax effects lodged in OCI, a 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options and 2015 impairment losses on surplus bank property. ⁽²⁾ Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). ⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization. ⁽⁴⁾ 2018 ratio is preliminary.

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UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information

	2018												2017			For the Twelve Months Ended
	Fourth			Third			Second			First			Fourth			December 31,
(in thousands, except per share data)	Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017			2016			2015			2014
Expense reconciliation
Expenses (GAAP)	$	78,242		$	77,718		$	76,850		$	73,475		$	75,882		$	306,285		$	267,611		$	241,289		$	211,238		$	162,865
Merger-related and other charges		(1,234	)		(592	)		(2,873	)		(2,646	)		(7,358	)		(7,345	)		(14,662	)		(8,122	)		(17,995	)		—
Expenses - operating	$	77,008		$	77,126		$	73,977		$	70,829		$	68,524		$	298,940		$	252,949		$	233,167		$	193,243		$	162,865
Net income reconciliation
Net income (loss) (GAAP)	$	45,137		$	43,682		$	39,634		$	37,658		$	(11,916	)	$	166,111		$	67,821		$	100,656		$	71,578		$	67,620
Merger-related and other charges		1,234			592			2,873			2,646			7,358			7,345			14,662			8,122			17,995			—
Income tax benefit of merger-related and other charges		(604	)		(141	)		(121	)		(628	)		(1,165	)		(1,494	)		(3,745	)		(3,074	)		(6,388	)		—
Impact of tax reform on remeasurement of deferred tax asset		—			—			—			—			38,199			—			38,199			—			—			—
Impairment of deferred tax asset on canceled non-qualified stock options		—			—			—			—			—			—			—			976			—			—
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—			—			3,400			—			—			—
Net income - operating	$	45,767		$	44,133		$	42,386		$	39,676		$	32,476		$	171,962		$	120,337		$	106,680		$	83,185		$	67,620
Diluted income per common share reconciliation
Diluted income (loss) per common share (GAAP)	$	0.56		$	0.54		$	0.49		$	0.47		$	(0.16	)	$	2.07		$	0.92		$	1.40		$	1.09		$	1.11
Merger-related and other charges		0.01			0.01			0.04			0.03			0.08			0.07			0.14			0.07			0.18			—
Impact of tax reform on remeasurement of deferred tax asset		—			—			—			—			0.50			—			0.52			—			—			—
Impairment of deferred tax asset on canceled non-qualified stock options		—			—			—			—			—			—			—			0.01			—			—
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—			—			0.05			—			—			—
Diluted income per common share - operating	$	0.57		$	0.55		$	0.53		$	0.50		$	0.42		$	2.14		$	1.63		$	1.48		$	1.27		$	1.11
Book value per common share reconciliation
Book value per common share (GAAP)	$	18.24		$	17.56		$	17.29		$	17.02		$	16.67		$	18.24		$	16.67		$	15.06		$	14.02		$	12.20
Effect of goodwill and other intangibles		(4.00	)		(4.02	)		(4.04	)		(4.06	)		(3.02	)		(4.00	)		(3.02	)		(2.11	)		(1.96	)		(0.05	)
Tangible book value per common share	$	14.24		$	13.54		$	13.25		$	12.96		$	13.65		$	14.24		$	13.65		$	12.95		$	12.06		$	12.15
Return on tangible common equity reconciliation
Return on common equity (GAAP)		12.08	%		11.96	%		11.20	%		11.11	%		(3.57	)%		11.60	%		5.67	%		9.41	%		8.15	%		9.17	%
Merger-related and other charges		0.17			0.13			0.77			0.60			1.86			0.41			0.92			0.48			1.33			—
Impact of tax reform on remeasurement of deferred tax asset		—			—			—			—			11.44			—			3.20			—			—			—
Impairment of deferred tax asset on canceled non-qualified stock options		—			—			—			—			—			—			—			0.09			—			—
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—			—			0.28			—			—			—
Return on common equity - operating		12.25			12.09			11.97			11.71			9.73			12.01			10.07			9.98			9.48			9.17
Effect of goodwill and other intangibles		3.63			3.72			3.82			3.55			2.20			3.68			1.95			1.88			0.76			0.15
Return on tangible common equity - operating		15.88	%		15.81	%		15.79	%		15.26	%		11.93	%		15.69	%		12.02	%		11.86	%		10.24	%		9.32	%
Return on assets reconciliation
Return on assets (GAAP)		1.43	%		1.41	%		1.30	%		1.26	%		(0.40	)%		1.35	%		0.62	%		1.00	%		0.85	%		0.91	%
Merger-related and other charges		0.02			0.01			0.09			0.07			0.20			0.05			0.09			0.05			0.13			—
Impact of tax reform on remeasurement of deferred tax asset		—			—			—			—			1.30			—			0.35			—			—			—
Impairment of deferred tax asset on canceled non-qualified stock options		—			—			—			—			—			—			—			0.01			—			—
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—			—			0.03			—			—			—
Return on assets - operating		1.45	%		1.42	%		1.39	%		1.33	%		1.10	%		1.40	%		1.09	%		1.06	%		0.98	%		0.91	%
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		28.57	%		27.78	%		30.61	%		25.53	%		(62.50	)%		28.02	%		41.30	%		21.43	%		20.18	%		9.91	%
Merger-related and other charges		(0.50	)		(0.51	)		(2.31	)		(1.53	)		12.04			(0.92	)		(5.65	)		(1.02	)		(2.86	)		—
Impact of tax reform on remeasurement of deferred tax asset		—			—			—			—			74.27			—			(11.61	)		—			—			—
Impairment of deferred tax asset on canceled non-qualified stock options		—			—			—			—			—			—			—			(0.14	)		—			—
Release of disproportionate tax effects lodged in OCI		—			—			—			—			—			—			(0.73	)		—			—			—
Dividend payout ratio - operating		28.07	%		27.27	%		28.30	%		24.00	%		23.81	%		27.10	%		23.31	%		20.27	%		17.32	%		9.91	%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		56.73	%		56.82	%		57.94	%		57.83	%		63.03	%		57.31	%		59.95	%		59.80	%		63.96	%		58.26	%
Merger-related and other charges		(0.90	)		(0.43	)		(2.17	)		(2.08	)		(6.11	)		(1.37	)		(3.28	)		(2.02	)		(5.45	)		—
Efficiency ratio - operating		55.83	%		56.39	%		55.77	%		55.75	%		56.92	%		55.94	%		56.67	%		57.78	%		58.51	%		58.26	%
Average equity to average assets reconciliation
Average equity to assets (GAAP)		11.35	%		11.33	%		11.21	%		11.03	%		11.21	%		11.24	%		10.71	%		10.54	%		10.27	%		9.69	%
Effect of goodwill and other intangibles		(2.31	)		(2.36	)		(2.38	)		(2.21	)		(1.69	)		(2.32	)		(1.42	)		(1.33	)		(0.53	)		(0.02	)
Average tangible equity to average assets		9.04			8.97			8.83			8.82			9.52			8.92			9.29			9.21			9.74			9.67
Effect of preferred equity		—			—			—			—			—			—			—			(0.02	)		(0.08	)		(0.07	)
Average tangible common equity to average assets		9.04	%		8.97	%		8.83	%		8.82	%		9.52	%		8.92	%		9.29	%		9.19	%		9.66	%		9.60	%
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory)		12.41	%		12.25	%		11.94	%		11.61	%		12.24	%		12.41	%		12.24	%		11.23	%		11.45	%		12.06	%
Effect of other comprehensive income		(0.44	)		(0.68	)		(0.57	)		(0.50	)		(0.29	)		(0.44	)		(0.29	)		(0.34	)		(0.38	)		(0.35	)
Effect of deferred tax limitation		0.28			0.30			0.33			0.42			0.51			0.28			0.51			1.26			2.05			3.11
Effect of trust preferred		(0.26	)		(0.26	)		(0.34	)		(0.34	)		(0.36	)		(0.26	)		(0.36	)		(0.25	)		(0.08	)		(1.00	)
Effect of preferred equity		—			—			—			—			—			—			—			—			(0.15	)		—
Basel III intangibles transition adjustment		—			—			—			—			(0.05	)		—			(0.05	)		(0.06	)		(0.10	)		—
Basel III disallowed investments		—			—			—			—			—			—			—			—			0.03			—
Tangible common equity to risk-weighted assets		11.99	%		11.61	%		11.36	%		11.19	%		12.05	%		11.99	%		12.05	%		11.84	%		12.82	%		13.82	%

(1) Fourth quarter 2018 ratios are preliminary.

5 

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End

	2018								2017		Linked			Year
	Fourth		Third		Second		First		Fourth		Quarter			over Year
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter		Change			Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,648	$	1,673	$	1,682	$	1,898	$	1,924	$	(25	)	$	(276	)
Income producing commercial RE		1,812		1,788		1,821		1,677		1,595		24			217
Commercial & industrial		1,278		1,194		1,193		1,142		1,131		84			147
Commercial construction		796		761		735		691		712		35			84
Equipment financing		565		509		465		423		-		56			565
Total commercial		6,099		5,925		5,896		5,831		5,362		174			737
Residential mortgage		1,049		1,035		1,021		992		974		14			75
Home equity lines of credit		694		702		708		712		731		(8	)		(37	)
Residential construction		211		198		195		190		183		13			28
Consumer		330		366		400		459		486		(36	)		(156	)
Total loans	$	8,383	$	8,226	$	8,220	$	8,184	$	7,736		157			647
LOANS BY MARKET
North Georgia	$	981	$	992	$	1,001	$	1,004	$	1,019		(11	)		(38	)
Atlanta MSA		1,507		1,493		1,533		1,513		1,510		14			(3	)
North Carolina		1,072		1,078		1,067		1,037		1,049		(6	)		23
Coastal Georgia		588		610		623		635		630		(22	)		(42	)
Gainesville MSA		247		235		230		231		248		12			(1	)
East Tennessee		477		460		474		473		475		17			2
South Carolina		1,645		1,586		1,571		1,537		1,486		59			159
Commercial Banking Solutions		1,658		1,530		1,444		1,438		961		128			697
Indirect auto		208		242		277		316		358		(34	)		(150	)
Total loans	$	8,383	$	8,226	$	8,220	$	8,184	$	7,736		157			647

6 

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Year-End

(in millions)	2018		2017		2016		2015		2014
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,648	$	1,924	$	1,650	$	1,571	$	1,257
Income producing commercial RE		1,812		1,595		1,282		1,021		767
Commercial & industrial		1,278		1,131		1,070		785		710
Commercial construction		796		712		634		518		364
Equipment financing		565		-		-		-		-
Total commercial		6,099		5,362		4,636		3,895		3,098
Residential mortgage		1,049		974		857		764		614
Home equity lines of credit		694		731		655		589		456
Residential construction		211		183		190		176		131
Consumer installment		330		486		583		571		373
Total loans	$	8,383	$	7,736	$	6,921	$	5,995	$	4,672
LOANS BY MARKET
North Georgia	$	981	$	1,019	$	1,097	$	1,125	$	1,163
Atlanta MSA		1,507		1,510		1,399		1,259		1,243
North Carolina		1,072		1,049		545		549		553
Coastal Georgia		588		630		581		537		456
Gainesville MSA		247		248		248		254		257
East Tennessee		477		475		504		504		280
South Carolina		1,645		1,486		1,233		819		30
Commercial Banking Solutions		1,658		961		855		492		421
Indirect auto		208		358		459		456		269
Total loans	$	8,383	$	7,736	$	6,921	$	5,995	$	4,672

7 

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Qualiy

	Fourth Quarter 2018									Third Quarter 2018									Second Quarter 2018
	Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total			Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs			Loans			Properties			NPAs			Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	6,421		$	170		$	6,591		$	4,884		$	183		$	5,067		$	5,772		$	812		$	6,584
Income producing CRE		1,160			-			1,160			1,194			156			1,350			991			455			1,446
Commercial & industrial		1,417			-			1,417			1,516			-			1,516			2,180			-			2,180
Commercial construction		605			421			1,026			825			522			1,347			613			576			1,189
Equipment financing		2,677			-			2,677			1,181			-			1,181			1,075			-			1,075
Total commercial		12,280			591			12,871			9,600			861			10,461			10,631			1,843			12,474
Residential mortgage		8,035			654			8,689			8,928			424			9,352			7,918			184			8,102
Home equity lines of credit		2,360			60			2,420			2,814			-			2,814			1,812			550			2,362
Residential construction		288			-			288			455			51			506			637			20			657
Consumer		815			-			815			733			-			733			819			-			819
Total NPAs	$	23,778		$	1,305		$	25,083		$	22,530		$	1,336		$	23,866		$	21,817		$	2,597		$	24,414
NONPERFORMING ASSETS BY MARKET
North Georgia	$	6,527		$	286		$	6,813		$	7,170		$	361		$	7,531		$	7,583		$	640		$	8,223
Atlanta MSA		1,578			-			1,578			1,778			132			1,910			1,928			132			2,060
North Carolina		3,259			743			4,002			3,690			480			4,170			3,029			750			3,779
Coastal Georgia		1,491			-			1,491			1,498			-			1,498			943			-			943
Gainesville MSA		479			-			479			212			-			212			186			-			186
East Tennessee		1,147			-			1,147			1,403			128			1,531			1,473			143			1,616
South Carolina		4,123			276			4,399			3,280			235			3,515			3,093			362			3,455
Commercial Banking Solutions		4,448			-			4,448			2,871			-			2,871			2,831			570			3,401
Indirect auto		726			-			726			628			-			628			751			-			751
Total NPAs	$	23,778		$	1,305		$	25,083		$	22,530		$	1,336		$	23,866		$	21,817		$	2,597		$	24,414
NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	22,530		$	1,336		$	23,866		$	21,817		$	2,597		$	24,414		$	26,240		$	2,714		$	28,954
Acquisitions		-			-			-			-			-			-			-			-			-
Loans placed on non-accrual		5,829			-			5,829			5,759			-			5,759			3,612			-			3,612
Payments received		(2,780	)		-			(2,780	)		(3,095	)		-			(3,095	)		(5,314	)		-			(5,314	)
Loan charge-offs		(933	)		-			(933	)		(1,588	)		-			(1,588	)		(2,065	)		-			(2,065	)
Foreclosures		(868	)		955			87			(363	)		454			91			(656	)		984			328
Property sales		-			(1,019	)		(1,019	)		-			(1,659	)		(1,659	)		-			(1,029	)		(1,029	)
Write downs		-			(112	)		(112	)		-			(166	)		(166	)		-			(106	)		(106	)
Net gains on sales		-			145			145			-			110			110			-			34			34
Ending Balance	$	23,778		$	1,305		$	25,083		$	22,530		$	1,336		$	23,866		$	21,817		$	2,597		$	24,414

	Fourth Quarter 2018						Third Quarter 2018						Second Quarter 2018
				Net Charge-						Net Charge-						Net Charge-
				Offs to						Offs to						Offs to
	Net			Average			Net			Average			Net			Average
(in thousands)	Charge-Offs			Loans (1)			Charge-Offs			Loans (1)			Charge-Offs			Loans (1)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE	$	(52	)		(0.01	)%	$	(251	)		(0.06	)%	$	(578	)		(0.13	)%
Income producing CRE		399			0.09			1			-			1,421			0.33
Commercial & industrial		(149	)		(0.05	)		418			0.14			16			0.01
Commercial construction		(230	)		(0.12	)		(43	)		(0.02	)		(107	)		(0.06	)
Equipment financing		599			0.44			482			0.39			(49	)		(0.04	)
Total commercial		567			0.04			607			0.04			703			0.05
Residential mortgage		290			0.11			171			0.07			11			-
Home equity lines of credit		382			0.22			279			0.16			21			0.01
Residential construction		(36	)		(0.07	)		(164	)		(0.33	)		(58	)		(0.12	)
Consumer		584			0.67			573			0.60			682			0.64
Total	$	1,787			0.09		$	1,466			0.07		$	1,359			0.07
NET CHARGE-OFFS BY MARKET
North Georgia	$	543			0.22	%	$	483			0.19	%	$	246			0.10	%
Atlanta MSA		(159	)		(0.04	)		99			0.03			103			0.03
North Carolina		68			0.03			(87	)		(0.03	)		1,268			0.48
Coastal Georgia		(86	)		(0.06	)		24			0.02			19			0.01
Gainesville MSA		333			0.56			(48	)		(0.08	)		(2	)		-
East Tennessee		(111	)		(0.09	)		(1	)		-			76			0.06
South Carolina		57			0.01			418			0.11			(1,057	)		(0.27	)
Commercial Banking Solutions		948			0.23			403			0.11			381			0.11
Indirect auto		194			0.34			175			0.27			325			0.44
Total	$	1,787			0.09		$	1,466			0.07		$	1,359			0.07

⁽¹⁾ Annualized.  

8 

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Income (Unaudited)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
(in thousands, except per share data)	2018		2017			2018			2017
Interest revenue:
Loans, including fees	$	112,087	$	87,234		$	420,383		$	315,050
Investment securities, including tax exempt of $1,140, $909, $4,189, and $2,216		21,237		19,023			77,685			72,388
Deposits in banks and short-term investments		530		500			2,012			2,282
Total interest revenue		133,854		106,757			500,080			389,720
Interest expense:
Deposits:
NOW and interest-bearing demand		3,073		1,433			7,390			3,365
Money market		4,078		2,095			12,097			7,033
Savings		33		46			150			135
Time		7,006		2,272			19,906			6,529
Total deposit interest expense		14,190		5,846			39,543			17,062
Short-term borrowings		340		175			1,112			352
Federal Home Loan Bank advances		794		1,492			6,345			6,095
Long-term debt		3,651		1,736			14,330			10,226
Total interest expense		18,975		9,249			61,330			33,735
Net interest revenue		114,879		97,508			438,750			355,985
Provision for credit losses		2,100		1,200			9,500			3,800
Net interest revenue after provision for credit losses		112,779		96,308			429,250			352,185
Noninterest income:
Service charges and fees		9,166		8,770			35,997			38,295
Mortgage loan and other related fees		3,082		4,885			19,010			18,320
Brokerage fees		1,593		1,068			5,191			4,633
Gains from sales of SBA/USDA loans		2,493		3,102			9,277			10,493
Securities gains (losses), net		646		(148	)		(656	)		42
Other		6,065		4,251			24,142			16,477
Total noninterest income		23,045		21,928			92,961			88,260
Total revenue		135,824		118,236			522,211			440,445
Noninterest expenses:
Salaries and employee benefits		45,631		41,042			181,015			153,098
Communications and equipment		6,206		5,217			21,277			19,660
Occupancy		5,842		5,542			22,781			20,344
Advertising and public relations		1,650		895			5,991			4,242
Postage, printing and supplies		1,520		1,825			6,416			5,952
Professional fees		4,105		3,683			15,540			12,074
FDIC assessments and other regulatory charges		1,814		1,776			8,491			6,534
Amortization of intangibles		1,420		1,760			6,846			4,845
Merger-related and other charges		965		6,841			5,414			13,901
Other		9,089		7,301			32,514			26,961
Total noninterest expenses		78,242		75,882			306,285			267,611
Net income before income taxes		57,582		42,354			215,926			172,834
Income tax expense		12,445		54,270			49,815			105,013
Net income	$	45,137	$	(11,916	)	$	166,111		$	67,821
Net income available to common shareholders	$	44,801	$	(11,986	)	$	164,927		$	67,250
Earnings per common share:
Basic		0.56		(0.16	)		2.07			0.92
Diluted		0.56		(0.16	)		2.07			0.92
Weighted average common shares outstanding:
Basic		79,884		76,768			79,662			73,247
Diluted		79,890		76,768			79,671			73,259

9 

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

	December 31,			December 31,
(in thousands, except share and per share data)	2018			2017
ASSETS
Cash and due from banks	$	126,083		$	129,108
Interest-bearing deposits in banks		201,182			185,167
Cash and cash equivalents		327,265			314,275
Debt securities available for sale		2,628,467			2,615,850
Debt securities held to maturity (fair value $268,803 and $321,276)		274,407			321,094
Loans held for sale (includes $18,935 and $26,252 at fair value)		18,935			32,734
Loans and leases, net of unearned income		8,383,401			7,735,572
Less allowance for loan and lease losses		(61,203	)		(58,914	)
Loans, net		8,322,198			7,676,658
Premises and equipment, net		206,140			208,852
Bank owned life insurance		192,616			188,970
Accrued interest receivable		35,413			32,459
Net deferred tax asset		64,224			88,049
Derivative financial instruments		24,705			22,721
Goodwill and other intangible assets		324,072			244,397
Other assets		154,750			169,401
Total assets	$	12,573,192		$	11,915,460
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	3,210,220		$	3,087,797
NOW and interest-bearing demand		2,274,775			2,131,939
Money market		2,097,526			2,016,748
Savings		669,886			651,742
Time		1,598,391			1,548,460
Brokered		683,715			371,011
Total deposits		10,534,513			9,807,697
Short-term borrowings		-			50,000
Federal Home Loan Bank advances		160,000			504,651
Long-term debt		267,189			120,545
Derivative financial instruments		26,433			25,376
Accrued expenses and other liabilities		127,503			103,857
Total liabilities		11,115,638			10,612,126
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized;
79,234,077 and 77,579,561 shares issued and outstanding		79,234			77,580
Common stock issuable; 674,499 and 607,869 shares		10,744			9,083
Capital surplus		1,499,584			1,451,814
Accumulated deficit		(90,419	)		(209,902	)
Accumulated other comprehensive loss		(41,589	)		(25,241	)
Total shareholders' equity		1,457,554			1,303,334
Total liabilities and shareholders' equity	$	12,573,192		$	11,915,460

10 

UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,

	2018								2017
	Average					Avg.			Average					Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	8,306,270		$	112,020		5.35	%	$	7,560,451		$	87,285		4.58	%
Taxable securities (3)		2,843,085			20,097		2.83			2,853,671			18,114		2.54
Tax-exempt securities (FTE) (1)(3)		161,284			1,535		3.81			137,080			1,488		4.34
Federal funds sold and other interest-earning assets		222,931			845		1.52			184,287			676		1.47
Total interest-earning assets (FTE)		11,533,570			134,497		4.63			10,735,489			107,563		3.98
Noninterest-earning assets:
Allowance for loan losses		(61,992	)							(59,508	)
Cash and due from banks		125,066								120,478
Premises and equipment		214,590								209,042
Other assets (3)		694,215								681,308
Total assets	$	12,505,449							$	11,686,809
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,046,224			3,073		0.60		$	2,078,239			1,433		0.27
Money market		2,215,444			4,078		0.73			2,243,279			2,095		0.37
Savings		675,265			33		0.02			636,057			46		0.03
Time		1,584,011			4,297		1.08			1,476,362			1,918		0.52
Brokered time deposits		490,748			2,709		2.19			115,235			354		1.22
Total interest-bearing deposits		7,011,692			14,190		0.80			6,549,172			5,846		0.35
Federal funds purchased and other borrowings		55,095			340		2.45			39,704			175		1.75
Federal Home Loan Bank advances		140,869			794		2.24			458,028			1,492		1.29
Long-term debt		272,313			3,651		5.32			120,885			1,736		5.70
Total borrowed funds		468,277			4,785		4.05			618,617			3,403		2.18
Total interest-bearing liabilities		7,479,969			18,975		1.01			7,167,789			9,249		0.51
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,294,385								3,074,898
Other liabilities		311,461								134,211
Total liabilities		11,085,815								10,376,898
Shareholders' equity		1,419,634								1,309,911
Total liabilities and shareholders' equity	$	12,505,449							$	11,686,809
Net interest revenue (FTE)				$	115,522							$	98,314
Net interest-rate spread (FTE)							3.62	%							3.47	%
Net interest margin (FTE) (4)							3.97	%							3.63	%

⁽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% in 2018 and 39% in 2017, 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 where 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 $59.5 million in 2018 and pretax unrealized gains of $3.32 million in 2017

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.

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UNITED COMMUNITY BANKS, INC.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Twelve Months Ended December 31,

	2018								2017
	Average					Avg.			Average					Avg.
(dollars in thousands, fully taxable equivalent (FTE))	Balance			Interest		Rate			Balance			Interest		Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	8,170,143		$	420,001		5.14	%	$	7,150,211		$	315,138		4.41	%
Taxable securities (3)		2,745,715			73,496		2.68			2,761,983			70,172		2.54
Tax-exempt securities (FTE) (1)(3)		152,855			5,641		3.69			85,415			3,627		4.25
Federal funds sold and other interest-earning assets		213,137			2,968		1.39			164,314			2,966		1.81
Total interest-earning assets (FTE)		11,281,850			502,106		4.45			10,161,923			391,903		3.86
Noninterest-earning assets:
Allowance for loan losses		(61,443	)							(60,602	)
Cash and due from banks		135,345								107,053
Premises and equipment		216,646								198,970
Other assets (3)		711,671								607,174
Total assets	$	12,284,069							$	11,014,518
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,018,404			7,390		0.37		$	1,950,827			3,365		0.17
Money market		2,206,643			12,097		0.55			2,136,336			7,033		0.33
Savings		672,735			150		0.02			591,831			135		0.02
Time		1,547,221			12,585		0.81			1,338,859			5,417		0.40
Brokered time deposits		347,072			7,321		2.11			108,891			1,112		1.02
Total interest-bearing deposits		6,792,075			39,543		0.58			6,126,744			17,062		0.28
Federal funds purchased and other borrowings		57,376			1,112		1.94			26,856			352		1.31
Federal Home Loan Bank advances		328,871			6,345		1.93			576,472			6,095		1.06
Long-term debt		290,004			14,330		4.94			156,327			10,226		6.54
Total borrowed funds		676,251			21,787		3.22			759,655			16,673		2.19
Total interest-bearing liabilities		7,468,326			61,330		0.82			6,886,399			33,735		0.49
Noninterest-bearing liabilities:
Noninterest-bearing deposits		3,207,625								2,823,005
Other liabilities		227,980								124,832
Total liabilities		10,903,931								9,834,236
Shareholders' equity		1,380,138								1,180,282
Total liabilities and shareholders' equity	$	12,284,069							$	11,014,518
Net interest revenue (FTE)				$	440,776							$	358,168
Net interest-rate spread (FTE)							3.63	%							3.37	%
Net interest margin (FTE) (4)							3.91	%							3.52	%

⁽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% in 2018 and 39% in 2017, 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 where 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 $45.2 million in 2018 and pretax unrealized gains of $4.33 million in

2017 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.

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About United Community Banks, Inc.

United Community Banks, Inc. (NASDAQ: UCBI) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville SC. The company’s banking subsidiary, United Community Bank, with $12.5 billion in assets is one of the southeast region’s largest full-service banks, operating 149 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For the last five years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2018, for the fifth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America. Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.

Non-GAAP Financial Measures

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

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Caution About Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. 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. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in United’s Form 10-K for the year ended December 31, 2017 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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