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United Community Banks, Inc. Reports Strong Second Quarter Results

EPS of $0.55 and ROA of 1.40%; Operating ROA reaches 1.50%

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.

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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

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, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $12.8 billion in assets, and 147 offices in Georgia, North Carolina, South Carolina, and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. 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 five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. Additional information about UCBI and the Bank can be found at