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United Community Banks, Inc. Announces Second Quarter Earnings

Diluted earnings per share up 11 percent, to 39 cents, from second quarter 2016
Excluding merger-related and other non-operating charges,
diluted operating EPS up 14 percent, to 41 cents

  • Net interest revenue of $85.1 million, up $10.2 million or 14 percent from year ago
  • Net interest margin of 3.47 percent, up two basis points from first quarter and up 12 basis points from year ago
  • Return on assets of 1.06 percent, or 1.10 percent excluding merger-related and other charges
  • Efficiency ratio of 57.9 percent, or 56.2 percent excluding merger-related and other charges
  • Announced two acquisitions during the quarter

BLAIRSVILLE, Ga., July 26, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today announced strong second quarter results with disciplined expense management, sound credit quality and meaningful margin expansion. Net income was $28.3 million, or 39 cents per diluted share, compared with $25.3 million, or 35 cents per diluted share, for the second quarter of 2016.

On an operating basis, net income rose to $29.4 million for the second quarter of 2017 compared with $26.0 million for the second quarter of 2016. Second quarter 2017 operating net income excludes merger-related and executive retirement charges totaling $1.16 million, net of the associated income tax benefit. Second quarter 2016 operating net income excludes $731,000 in merger-related charges, net of the associated income tax benefit. On a per diluted share basis, operating net income was 41 cents for the second quarter of 2017 compared with 36 cents for the second quarter of 2016.

At June 30, 2017, preliminary regulatory capital ratios were as follows. Tier 1 Risk-Based of 11.9 percent; Total Risk-Based of 12.7 percent; Common Equity Tier 1 Risk-Based of 11.9 percent, and Tier 1 Leverage of 9.0 percent.

“From both financial and strategic perspectives, I am very pleased with our second quarter performance,” said Jimmy Tallent, chairman and chief executive officer. “It marks our twelfth consecutive quarter of double-digit growth in diluted operating earnings per share, which is a key driver of stock price appreciation. We accomplished this by growing loans and deposits in a disciplined manner that slightly widened our net interest margin and maintained our outstanding credit quality.

“Excluding merger-related and other non-operating charges, our second quarter operating efficiency ratio improved to 56.2 percent, surpassing the fourth quarter record which was the best in more than a decade,” Tallent continued. “Including those charges, the efficiency ratio was 57.9 percent. From a financial perspective, our bankers delivered solid performance by every measure.”

Tallent said the second quarter was also remarkable from a strategic perspective. “We announced two strategic partnerships during the quarter that will expand and enhance our footprint in dynamic, high-growth markets,” he said. “On April 20, we announced the Horry County State Bank acquisition which will close in the third quarter and significantly enhance our presence in the Myrtle Beach area along the South Carolina coast. The acquisition of Horry County State Bank is part of our larger, ongoing expansion strategy in the high-growth South Carolina coastal markets.

“On June 27, we announced our planned acquisition of Four Oaks Bank & Trust Company, which should close in the fourth quarter and will extend our footprint farther east in North Carolina to the fast-growing Raleigh MSA. We have long sought to enter this market and are delighted to find an exceptional partner in Four Oaks. I could not be more pleased with these two partnerships and look forward to them becoming part of United.

“Second quarter loan production was $667 million,” Tallent added. “Linked-quarter loan growth was $76 million, or four percent annualized. Our community banks originated $461 million in loans, while our recently renamed Commercial Banking Solutions group produced $166 million.”

Commercial Banking Solutions, previously named Specialized Lending, encompasses commercial lending for income property, middle market, SBA, asset-based, senior care, builder finance and recently announced renewable energy.

Second quarter net interest revenue totaled $85.1 million, up $10.2 million from the second quarter of 2016 and up $1.6 million from the first quarter. The increases from both periods reflect growth in loans and deposits and net interest margin expansions of 12 basis points from a year ago and two basis points from the first quarter, mostly driven by rising short-term interest rates. The increase in net interest revenue from a year ago also reflects the acquisition of Tidelands Bank which was completed on July 1, 2016. Tidelands Bank results are included in United’s financial results from the acquisition date.

The second quarter provision for credit losses was $800,000, equal to the first quarter provision. This compares with a provision recovery of $300,000 in the second quarter of 2016. Second quarter net charge-offs totaled $1.6 million, compared with $1.7 million in both the second quarter of 2016 and the first quarter of 2017. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were .24 percent of total assets at June 30, 2017, compared with .28 percent at June 30, 2016 and .23 percent at March 31, 2017.

“Our second quarter provision for loan losses reflects continued strong, steady credit quality and a low level of net charge-offs,” Tallent commented. “Our credit quality indicators remain favorable and our outlook is for that to continue. We also expect our provision levels to gradually increase during the year due to loan growth, while our allowance and the related ratio to total loans will decline slightly.”

Second quarter fee revenue totaled $23.7 million, up $188,000 from a year ago and up $1.61 million from the first quarter. The increase from the first quarter was mostly in mortgage fees, gains from sales of SBA loans and other fee revenue. The increase from a year ago was mostly in mortgage fees. Mortgage fees were up $363,000 from a year ago, and $387,000 from the first quarter. In the second quarter we closed 888 loans totaling $204 million compared with 697 loans totaling $151 million in the first quarter and 853 loans totaling $182 million in the second quarter of 2016. Gains from sales of SBA loans were down $175,000 from a year ago but were up $667,000 from the first quarter following a seasonal first quarter decline. Other fee revenue was up $718,000 from the first quarter mostly due to higher customer derivative fees and higher earnings from bank-owned life insurance assets.

Operating expenses were $63.2 million for the second quarter, compared with $58.1 million for the second quarter of 2016 and $62.8 million for the first quarter. Included in operating expenses are merger-related and executive retirement charges of $1.83 million in the second quarter, merger-related charges of $1.18 million in the second quarter of 2016, and merger-related and branch closure charges of $2.05 million in the first quarter of 2017. Excluding these charges, second quarter operating expenses were $61.4 million compared with $56.9 million a year ago and $60.8 million for the first quarter. The $627,000 increase from the first quarter, though partially offset by lower professional fees, was mostly due to an increase in salaries and employee benefit costs following annual staff compensation increases that went into effect on April 1.

The overall increase in other expenses resulted from higher travel-related costs, internet banking service provider charges, and higher lending support costs. The decrease in professional fees was due to elevated costs in the first quarter to assist with model development for United’s stress testing project. The increase in operating expenses from a year ago reflects additional expense following the acquisition of Tidelands Bank on July 1, 2016.

Income tax expense for the second quarter totaled $16.5 million compared with $15.4 million a year ago and $18.5 million in the first quarter. The first quarter was elevated due to a $3.4 million non-cash charge to release income taxes on hedge instruments that were held in other comprehensive income during the time in which United had a full valuation allowance on our deferred tax asset.

Tallent concluded, “Our bankers continue to do what they do best and that is take care of their customers by delivering the highest level of courteous service. Their passion and commitment drive our performance and are reflected in our second quarter financial results. I look forward to the opportunities that lie ahead and am excited about completing the acquisitions of Horry County State Bank and Four Oaks Bank & Trust Company. These two exceptional banks are outstanding strategic partners in key growth markets and share our passion for banking and our commitment to customer service. I look forward to welcoming them aboard and for the opportunities that these acquisitions create to recruit other talented bankers from within these markets into the United family.”

Conference Call

United will hold a conference call today, Wednesday, July 26, 2017, at 11 a.m. ET to discuss the contents of this earnings release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 47369140. 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.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ:UCBI) is a bank holding company based in Blairsville, Georgia with $10.8 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 134 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. In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast. In 2017, for the fourth 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 News 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 share,” “operating net income available to common shareholders,” “operating diluted income per common 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.

Safe Harbor
This News Release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission, including our 2016 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
Second
2017 2016Quarter
Second First Fourth Third Second 2017-2016
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter Change
INCOME SUMMARY
Interest revenue$93,166 $90,958 $87,778 $85,439 $81,082
Interest expense 8,018 7,404 6,853 6,450 6,164
Net interest revenue 85,148 83,554 80,925 78,989 74,918 14 %
Provision for credit losses 800 800 - (300) (300)
Fee revenue 23,685 22,074 25,233 26,361 23,497 1
Total revenue 108,033 104,828 106,158 105,650 98,715 9
Expenses 63,229 62,826 61,321 64,023 58,060 9
Income before income tax expense 44,804 42,002 44,837 41,627 40,655 10
Income tax expense 16,537 18,478 17,616 15,753 15,389 7
Net income 28,267 23,524 27,221 25,874 25,266 12
Preferred dividends - - - - -
Net income available to common shareholders$ 28,267 $ 23,524 $ 27,221 $ 25,874 $ 25,266 12
Merger-related and other charges 1,830 2,054 1,141 3,152 1,176
Income tax benefit of merger-related and other charges (675) (758) (432) (1,193) (445)
Impairment of deferred tax asset on canceled non-qualified stock options - - 976 - -
Release of disproportionate tax effects lodged in OCI - 3,400 - - -
Net income available to common shareholders - operating (1)$ 29,422 $ 28,220 $ 28,906 $ 27,833 $ 25,997 13
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP$ .39 $ .33 $ .38 $ .36 $ .35 11
Diluted net income - operating (1) .41 .39 .40 .39 .36 14
Cash dividends declared .09 .09 .08 .08 .07
Book value 15.83 15.40 15.06 15.12 14.80 7
Tangible book value (3) 13.74 13.30 12.95 13.00 12.84 7
Key performance ratios:
Return on common equity - GAAP (2)(4) 9.98 % 8.54 % 9.89 % 9.61 % 9.54 %
Return on common equity - operating (1)(2)(4) 10.39 10.25 10.51 10.34 9.81
Return on tangible common equity - operating (1)(2)(3)(4) 12.19 12.10 12.47 12.45 11.56
Return on assets - GAAP (4) 1.06 .89 1.03 1.00 1.04
Return on assets - operating (1)(4) 1.10 1.07 1.10 1.08 1.07
Dividend payout ratio - GAAP 23.08 27.27 21.05 22.22 20.00
Dividend payout ratio - operating (1) 21.95 23.08 20.00 20.51 19.44
Net interest margin (fully taxable equivalent) (4) 3.47 3.45 3.34 3.34 3.35
Efficiency ratio - GAAP 57.89 59.29 57.65 60.78 59.02
Efficiency ratio - operating (1) 56.21 57.35 56.58 57.79 57.82
Average equity to average assets 10.49 10.24 10.35 10.38 10.72
Average tangible equity to average assets (3) 9.23 8.96 9.04 8.98 9.43
Average tangible common equity to average assets (3) 9.23 8.96 9.04 8.98 9.43
Tangible common equity to risk-weighted assets (3)(5) 12.44 12.07 11.84 12.22 12.87
ASSET QUALITY
Nonperforming loans$23,095 $19,812 $21,539 $21,572 $21,348 8
Foreclosed properties 2,739 5,060 7,949 9,187 6,176 (56)
Total nonperforming assets (NPAs) 25,834 24,872 29,488 30,759 27,524 (6)
Allowance for loan losses 59,500 60,543 61,422 62,961 64,253 (7)
Net charge-offs 1,623 1,679 1,539 1,359 1,730 (6)
Allowance for loan losses to loans .85 % .87 % .89 % .94 % 1.02 %
Net charge-offs to average loans (4) .09 .10 .09 .08 .11
NPAs to loans and foreclosed properties .37 .36 .43 .46 .44
NPAs to total assets .24 .23 .28 .30 .28
AVERAGE BALANCES ($ in millions)
Loans$6,980 $6,904 $6,814 $6,675 $6,151 13
Investment securities 2,775 2,822 2,690 2,610 2,747 1
Earning assets 9,899 9,872 9,665 9,443 9,037 10
Total assets 10,704 10,677 10,484 10,281 9,809 9
Deposits 8,659 8,592 8,552 8,307 7,897 10
Shareholders’ equity 1,123 1,093 1,085 1,067 1,051 7
Common shares - basic (thousands) 71,810 71,700 71,641 71,556 72,202 (1)
Common shares - diluted (thousands) 71,820 71,708 71,648 71,561 72,207 (1)
AT PERIOD END ($ in millions)
Loans$7,041 $6,965 $6,921 $6,725 $6,287 12
Investment securities 2,787 2,767 2,762 2,560 2,677 4
Total assets 10,837 10,732 10,709 10,298 9,928 9
Deposits 8,736 8,752 8,638 8,442 7,857 11
Shareholders’ equity 1,133 1,102 1,076 1,079 1,060 7
Common shares outstanding (thousands) 70,981 70,973 70,899 70,861 71,122 -
(1) Excludes merger-related and other charges, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options. (2) Net income available to common shareholders, which is net of 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) Second quarter 2017 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
For the Six
Months Ended YTD
June 30, 2017-2016
(in thousands, except per share data) 2017 2016 Change
INCOME SUMMARY
Interest revenue$184,124 $161,803
Interest expense 15,422 11,933
Net interest revenue 168,702 149,870 13 %
Provision for credit losses 1,600 (500)
Fee revenue 45,759 42,103 9
Total revenue 212,861 192,473 11
Expenses 126,055 115,945 9
Income before income tax expense 86,806 76,528 13
Income tax expense 35,015 28,967 21
Net income 51,791 47,561 9
Preferred dividends - 21
Net income available to common shareholders$ 51,791 $ 47,540 9
Merger-related and other charges 3,884 3,829
Income tax benefit of merger-related and other charges (1,433) (1,449)
Impairment of deferred tax asset on canceled
non-qualified stock options
- -
Release of disproportionate tax effects lodged in OCI 3,400 -
Net income available to common
shareholders - operating (1)
$ 57,642 $ 49,920 15
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP$.72 $.66 9
Diluted net income - operating (1) .80 .69 16
Cash dividends declared .18 .14
Book value 15.83 14.80 7
Tangible book value (3) 13.74 12.84 7
Key performance ratios:
Return on common equity - GAAP (2)(4) 9.27 % 9.06 %
Return on common equity - operating (1)(2)(4) 10.32 9.51
Return on tangible common equity - operating (1)(2)(3)(4) 12.15 11.24
Return on assets - GAAP (4) .98 .98
Return on assets - operating (1)(4) 1.09 1.03
Dividend payout ratio - GAAP 25.00 21.21
Dividend payout ratio - operating (1) 22.50 20.29
Net interest margin (fully taxable equivalent) (4) 3.46 3.38
Efficiency ratio - GAAP 58.58 60.44
Efficiency ratio - operating (1) 56.77 58.45
Average equity to average assets 10.36 10.72
Average tangible equity to average assets (3) 9.09 9.42
Average tangible common equity to average assets (3) 9.09 9.38
Tangible common equity to risk-weighted assets (3)(5) 12.44 12.87
ASSET QUALITY
Nonperforming loans$23,095 $21,348 8
Foreclosed properties 2,739 6,176 (56)
Total nonperforming assets (NPAs) 25,834 27,524 (6)
Allowance for loan losses 59,500 64,253 (7)
Net charge-offs 3,302 3,868 (15)
Allowance for loan losses to loans .85 % 1.02 %
Net charge-offs to average loans (4) .10 .13
NPAs to loans and foreclosed properties .37 .44
NPAs to total assets .24 .28
AVERAGE BALANCES ($ in millions)
Loans$6,942 $6,077 14
Investment securities 2,798 2,733 2
Earning assets 9,885 8,956 10
Total assets 10,691 9,721 10
Deposits 8,626 7,922 9
Shareholders’ equity 1,108 1,042 6
Common shares - basic (thousands) 71,798 72,187 (1)
Common shares - diluted (thousands) 71,809 72,191 (1)
AT PERIOD END ($ in millions)
Loans$ 7,041 $ 6,287 12
Investment securities 2,787 2,677 4
Total assets 10,837 9,928 9
Deposits 8,736 7,857 11
Shareholders’ equity 1,133 1,060 7
Common shares outstanding (thousands) 70,981 71,122 -
(1) Excludes merger-related and other charges, a first quarter 2017 release of disproportionate tax effects lodged in OCI and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options. (2) Net income available to common shareholders, which is net of 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) Second quarter 2017 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
2017 2016
Second First Fourth Third Second
(in thousands, except per share data)Quarter Quarter Quarter Quarter Quarter
Expense reconciliation
Expenses (GAAP)$ 63,229 $ 62,826 $ 61,321 $ 64,023 $ 58,060
Merger-related and other charges (1,830) (2,054) (1,141) (3,152) (1,176)
Expenses - operating$ 61,399 $ 60,772 $ 60,180 $ 60,871 $ 56,884
Net income reconciliation
Net income (GAAP)$ 28,267 $ 23,524 $ 27,221 $ 25,874 $ 25,266
Merger-related and other charges 1,830 2,054 1,141 3,152 1,176
Income tax benefit of merger-related and other charges (675) (758) (432) (1,193) (445)
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$ 29,422 $ 28,220 $ 28,906 $ 27,833 $ 25,997
Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)$ 28,267 $ 23,524 $ 27,221 $ 25,874 $ 25,266
Merger-related and other charges 1,830 2,054 1,141 3,152 1,176
Income tax benefit of merger-related and other charges (675) (758) (432) (1,193) (445)
Impairment of deferred tax asset on canceled non-qualified stock options - - 976 - -
Release of disproportionate tax effects lodged in OCI - 3,400 - - -
Net income available to common shareholders - operating$ 29,422 $ 28,220 $ 28,906 $ 27,833 $ 25,997
Diluted income per common share reconciliation
Diluted income per common share (GAAP)$.39 $.33 $.38 $.36 $.35
Merger-related and other charges .02 .01 .01 .03 .01
Impairment of deferred tax asset on canceled non-qualified stock options - - .01 - -
Release of disproportionate tax effects lodged in OCI - .05 - - -
Diluted income per common share - operating$.41 $.39 $.40 $.39 $.36
Book value per common share reconciliation
Book value per common share (GAAP)$ 15.83 $ 15.40 $ 15.06 $ 15.12 $ 14.80
Effect of goodwill and other intangibles (2.09) (2.10) (2.11) (2.12) (1.96)
Tangible book value per common share$ 13.74 $ 13.30 $ 12.95 $ 13.00 $ 12.84
Return on tangible common equity reconciliation
Return on common equity (GAAP) 9.98 % 8.54 % 9.89 % 9.61 % 9.54 %
Merger-related and other charges .41 .47 .26 .73 .27
Impairment of deferred tax asset on canceled non-qualified stock options - - .36 - -
Release of disproportionate tax effects lodged in OCI - 1.24 - - -
Return on common equity - operating 10.39 10.25 10.51 10.34 9.81
Effect of goodwill and other intangibles 1.80 1.85 1.96 2.11 1.75
Return on tangible common equity - operating 12.19 % 12.10 % 12.47 % 12.45 % 11.56 %
Return on assets reconciliation
Return on assets (GAAP) 1.06 % .89 % 1.03 % 1.00 % 1.04 %
Merger-related and other charges .04 .05 .03 .08 .03
Impairment of deferred tax asset on canceled non-qualified stock options - - .04 - -
Release of disproportionate tax effects lodged in OCI - .13 - - -
Return on assets - operating 1.10 % 1.07 % 1.10 % 1.08 % 1.07 %
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP) 23.08 % 27.27 % 21.05 % 22.22 % 20.00 %
Merger-related and other charges (1.13) (.98) (.54) (1.71) (.56)
Impairment of deferred tax asset on canceled non-qualified stock options - - (.51) - -
Release of disproportionate tax effects lodged in OCI - (3.21) - - -
Dividend payout ratio - operating 21.95 % 23.08 % 20.00 % 20.51 % 19.44 %
Efficiency ratio reconciliation
Efficiency ratio (GAAP) 57.89 % 59.29 % 57.65 % 60.78 % 59.02 %
Merger-related and other charges (1.68) (1.94) (1.07) (2.99) (1.20)
Efficiency ratio - operating 56.21 % 57.35 % 56.58 % 57.79 % 57.82 %
Average equity to assets reconciliation
Equity to assets (GAAP) 10.49 % 10.24 % 10.35 % 10.38 % 10.72 %
Effect of goodwill and other intangibles (1.26) (1.28) (1.31) (1.40) (1.29)
Tangible equity to assets 9.23 8.96 9.04 8.98 9.43
Effect of preferred equity - - - - -
Tangible common equity to assets 9.23 % 8.96 % 9.04 % 8.98 % 9.43 %
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory) 11.92 % 11.46 % 11.23 % 11.04 % 11.44 %
Effect of other comprehensive income (.15) (.24) (.34) - (.06)
Effect of deferred tax limitation .94 1.13 1.26 1.50 1.63
Effect of trust preferred (.25) (.25) (.25) (.26) (.08)
Effect of preferred equity - - - - -
Basel III intangibles transition adjustment (.02) (.03) (.06) (.06) (.06)
Basel III disallowed investments - - - - -
Tangible common equity to risk-weighted assets 12.44 % 12.07 % 11.84 % 12.22 % 12.87 %
(1) Second quarter 2017 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
For the Six Months Ended
June 30,
(in thousands, except per share data) 2017 2016
Expense reconciliation
Expenses (GAAP)$ 126,055 $ 115,945
Merger-related and other charges (3,884) (3,829)
Expenses - operating$ 122,171 $ 112,116
Net income reconciliation
Net income (GAAP)$ 51,791 $ 47,561
Merger-related and other charges 3,884 3,829
Income tax benefit of merger-related and other charges (1,433) (1,449)
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI 3,400 -
Net income - operating$ 57,642 $ 49,941
Net income available to common shareholders reconciliation
Net income available to common shareholders (GAAP)$ 51,791 $ 47,540
Merger-related and other charges 3,884 3,829
Income tax benefit of merger-related and other charges (1,433) (1,449)
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI 3,400 -
Net income available to common shareholders - operating$ 57,642 $ 49,920
Diluted income per common share reconciliation
Diluted income per common share (GAAP)$.72 $.66
Merger-related and other charges .03 .03
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI .05 -
Diluted income per common share - operating$.80 $.69
Book value per common share reconciliation
Book value per common share (GAAP)$ 15.83 $ 14.80
Effect of goodwill and other intangibles (2.09) (1.96)
Tangible book value per common share$ 13.74 $ 12.84
Return on tangible common equity reconciliation
Return on common equity (GAAP) 9.27 % 9.06 %
Merger-related and other charges .44 .45
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI .61 -
Return on common equity - operating 10.32 9.51
Effect of goodwill and other intangibles 1.83 1.73
Return on tangible common equity - operating 12.15 % 11.24 %
Return on assets reconciliation
Return on assets (GAAP) .98 % .98 %
Merger-related and other charges .05 .05
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI .06 -
Return on assets - operating 1.09 % 1.03 %
Dividend payout ratio reconciliation
Dividend payout ratio (GAAP) 25.00 % 21.21 %
Merger-related and other charges (1.00) (.92)
Impairment of deferred tax asset on canceled non-qualified stock options - -
Release of disproportionate tax effects lodged in OCI (1.50) -
Dividend payout ratio - operating 22.50 % 20.29 %
Efficiency ratio reconciliation
Efficiency ratio (GAAP) 58.58 % 60.44 %
Merger-related and other charges (1.81) (1.99)
Efficiency ratio - operating 56.77 % 58.45 %
Average equity to assets reconciliation
Equity to assets (GAAP) 10.36 % 10.72 %
Effect of goodwill and other intangibles (1.27) (1.30)
Tangible equity to assets 9.09 9.42
Effect of preferred equity - (.04)
Tangible common equity to assets 9.09 % 9.38 %
Tangible common equity to risk-weighted assets reconciliation (1)
Tier 1 capital ratio (Regulatory) 11.92 % 11.44 %
Effect of other comprehensive income (.15) (.06)
Effect of deferred tax limitation .94 1.63
Effect of trust preferred (.25) (.08)
Effect of preferred equity - -
Basel III intangibles transition adjustment (.02) (.06)
Basel III disallowed investments - -
Tangible common equity to risk-weighted assets 12.44 % 12.87 %
(1) Second quarter 2017 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2017 2016
Second First Fourth Third Second
(in millions) Quarter Quarter Quarter Quarter Quarter
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,723 $ 1,633 $ 1,650 $ 1,587 $ 1,527
Income producing commercial RE 1,342 1,297 1,282 1,277 1,101
Commercial & industrial 1,088 1,080 1,070 994 925
Commercial construction 587 667 634 567 565
Total commercial 4,740 4,677 4,636 4,425 4,118
Residential mortgage 881 860 857 814 784
Home equity lines of credit 665 659 655 693 616
Residential construction 193 197 190 200 170
Consumer installment 562 572 583 593 599
Total loans $ 7,041 $ 6,965 $ 6,921 $ 6,725 $ 6,287
LOANS BY MARKET
North Georgia $ 1,065 $ 1,076 $ 1,097 $ 1,110 $ 1,097
Atlanta MSA 1,445 1,408 1,399 1,332 1,314
North Carolina 541 541 545 548 543
Coastal Georgia 623 591 581 565 541
Gainesville MSA 246 252 248 236 240
East Tennessee 486 483 504 506 509
South Carolina 1,260 1,243 1,233 1,199 862
Commercial Banking Solutions 926 911 855 763 706
Indirect auto 449 460 459 466 475
Total loans $ 7,041 $ 6,965 $ 6,921 $ 6,725 $ 6,287

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
2017 2016 Linked
Quarter
Change
Year over
Year
Change
Second First Second
(in millions) Quarter Quarter Quarter
LOANS BY CATEGORY
Owner occupied commercial RE $ 1,723 $ 1,633 $ 1,527 $ 90 $ 196
Income producing commercial RE 1,342 1,297 1,101 45 241
Commercial & industrial 1,088 1,080 925 8 163
Commercial construction 587 667 565 (80) 22
Total commercial 4,740 4,677 4,118 63 622
Residential mortgage 881 860 784 21 97
Home equity lines of credit 665 659 616 6 49
Residential construction 193 197 170 (4) 23
Consumer installment 562 572 599 (10) (37)
Total loans $ 7,041 $ 6,965 $ 6,287 76 754
LOANS BY MARKET
North Georgia $ 1,065 $ 1,076 $ 1,097 (11) (32)
Atlanta MSA 1,445 1,408 1,314 37 131
North Carolina 541 541 543 - (2)
Coastal Georgia 623 591 541 32 82
Gainesville MSA 246 252 240 (6) 6
East Tennessee 486 483 509 3 (23)
South Carolina 1,260 1,243 862 17 398
Commercial Banking Solutions 926 911 706 15 220
Indirect auto 449 460 475 (11) (26)
Total loans $ 7,041 $ 6,965 $ 6,287 76 754

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Second Quarter 2017
Nonperforming Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 5,248 $ 580 $ 5,828
Income producing CRE 2,587 - 2,587
Commercial & industrial 1,010 - 1,010
Commercial construction 2,530 611 3,141
Total commercial 11,375 1,191 12,566
Residential mortgage 7,886 457 8,343
Home equity lines of credit 2,152 201 2,353
Residential construction 287 890 1,177
Consumer installment 1,395 - 1,395
Total NPAs $ 23,095 $ 2,739 $ 25,834
NONPERFORMING ASSETS BY MARKET
North Georgia $ 5,449 $ 225 $ 5,674
Atlanta MSA 906 423 1,329
North Carolina 4,700 472 5,172
Coastal Georgia 2,542 - 2,542
Gainesville MSA 622 - 622
East Tennessee 2,216 103 2,319
South Carolina 3,472 1,516 4,988
Commercial Banking Solutions 1,914 - 1,914
Indirect auto 1,274 - 1,274
Total NPAs $ 23,095 $ 2,739 $ 25,834
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 19,812 $ 5,060 $ 24,872
Acquisitions - - -
Loans placed on non-accrual 8,110 - 8,110
Payments received (2,955) - (2,955)
Loan charge-offs (1,564) - (1,564)
Foreclosures (308) 481 173
Capitalized costs - - -
Property sales - (2,704) (2,704)
Write downs - (294) (294)
Net gains (losses) on sales - 196 196
Ending Balance $ 23,095 $ 2,739 $ 25,834

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
First Quarter 2017
Nonperforming Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 6,135 $ 1,238 $ 7,373
Income producing CRE 1,540 21 1,561
Commercial & industrial 929 - 929
Commercial construction 1,069 2,825 3,894
Total commercial 9,673 4,084 13,757
Residential mortgage 6,455 660 7,115
Home equity lines of credit 1,848 261 2,109
Residential construction 417 55 472
Consumer installment 1,419 - 1,419
Total NPAs $ 19,812 $ 5,060 $ 24,872
NONPERFORMING ASSETS BY MARKET
North Georgia $ 5,344 $ 570 $ 5,914
Atlanta MSA 715 645 1,360
North Carolina 4,897 355 5,252
Coastal Georgia 942 - 942
Gainesville MSA 728 - 728
East Tennessee 2,112 633 2,745
South Carolina 1,725 2,857 4,582
Commercial Banking Solutions 2,032 - 2,032
Indirect auto 1,317 - 1,317
Total NPAs $ 19,812 $ 5,060 $ 24,872
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 21,539 $ 7,949 $ 29,488
Acquisitions - - -
Loans placed on non-accrual 3,172 - 3,172
Payments received (3,046) - (3,046)
Loan charge-offs (1,292) - (1,292)
Foreclosures (561) 561 -
Capitalized costs - - -
Property sales - (3,077) (3,077)
Write downs - (480) (480)
Net gains (losses) on sales - 107 107
Ending Balance $ 19,812 $ 5,060 $ 24,872

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Fourth Quarter 2016
Nonperforming Foreclosed Total
(in thousands) Loans Properties NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE $ 7,373 $ 3,145 $ 10,518
Income producing CRE 1,324 36 1,360
Commercial & industrial 966 - 966
Commercial construction 1,538 2,977 4,515
Total commercial 11,201 6,158 17,359
Residential mortgage 6,368 1,260 7,628
Home equity lines of credit 1,831 531 2,362
Residential construction 776 - 776
Consumer installment 1,363 - 1,363
Total NPAs $ 21,539 $ 7,949 $ 29,488
NONPERFORMING ASSETS BY MARKET
North Georgia $ 5,278 $ 856 $ 6,134
Atlanta MSA 1,259 716 1,975
North Carolina 4,750 632 5,382
Coastal Georgia 1,778 - 1,778
Gainesville MSA 279 - 279
East Tennessee 2,354 675 3,029
South Carolina 2,494 5,070 7,564
Commercial Banking Solutions 2,072 - 2,072
Indirect auto 1,275 - 1,275
Total NPAs $ 21,539 $ 7,949 $ 29,488
NONPERFORMING ASSETS ACTIVITY
Beginning Balance $ 21,572 $ 9,187 $ 30,759
Acquisitions - - -
Loans placed on non-accrual 6,346 - 6,346
Payments received (3,832) - (3,832)
Loan charge-offs (1,293) - (1,293)
Foreclosures (1,254) 1,530 276
Capitalized costs - 26 26
Property sales - (2,737) (2,737)
Write downs - (254) (254)
Net gains (losses) on sales - 197 197
Ending Balance $ 21,539 $ 7,949 $ 29,488

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
Second Quarter 2017 First Quarter 2017 Fourth Quarter 2016
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 $ 37 .01 % $ (212) (.05) % $ 1 - %
Income producing CRE 184 .06 870 .28 527 .16
Commercial & industrial 354 .13 (152) (.06) (201) (.08)
Commercial construction 341 .22 (370) (.23) 241 .16
Total commercial 916 .08 136 .01 568 .05
Residential mortgage 26 .01 530 .25 322 .15
Home equity lines of credit 253 .15 422 .26 151 .09
Residential construction (53) (.11) (9) (.02) (16) (.03)
Consumer installment 481 .34 600 .42 514 .35
Total $ 1,623 .09 $ 1,679 .10 $ 1,539 .09
NET CHARGE-OFFS BY MARKET
North Georgia $ 681 .26 % $ 15 .01 % $ 575 .21 %
Atlanta MSA (10) - (46) (.01) 12 -
North Carolina 131 .10 601 .45 714 .52
Coastal Georgia 120 .08 (223) (.15) 118 .08
Gainesville MSA (54) (.09) 358 .58 (32) (.05)
East Tennessee 27 .02 55 .05 (139) (.11)
South Carolina 526 .17 425 .14 (2) -
Commercial Banking Solutions (17) (.01) 195 .09 (21) (.01)
Indirect auto 219 .19 299 .27 314 .27
Total $ 1,623 .09 $ 1,679 .10 $ 1,539 .09
(1) Annualized.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
(in thousands, except per share data) 2017 2016 2017 2016
Interest revenue:
Loans, including fees $ 74,825 $ 63,472 $ 147,552 $ 127,448
Investment securities, including tax exempt of $357, $149, $636, and $315 17,778 16,833 35,490 32,621
Deposits in banks and short-term investments 563 777 1,082 1,734
Total interest revenue 93,166 81,082 184,124 161,803
Interest expense:
Deposits:
NOW 635 444 1,232 929
Money market 1,559 1,206 2,985 2,314
Savings 28 30 55 59
Time 1,379 743 2,387 1,385
Total deposit interest expense 3,601 2,423 6,659 4,687
Short-term borrowings 101 93 141 180
Federal Home Loan Bank advances 1,464 983 2,894 1,716
Long-term debt 2,852 2,665 5,728 5,350
Total interest expense 8,018 6,164 15,422 11,933
Net interest revenue 85,148 74,918 168,702 149,870
(Release of) provision for credit losses 800 (300) 1,600 (500)
Net interest revenue after provision for credit losses 84,348 75,218 167,102 150,370
Fee revenue:
Service charges and fees 10,701 10,515 21,305 20,641
Mortgage loan and other related fees 4,811 4,448 9,235 7,737
Brokerage fees 1,146 1,117 2,556 2,170
Gains from sales of government guaranteed loans 2,626 2,801 4,585 4,038
Securities gains, net 4 282 2 661
Other 4,397 4,334 8,076 6,856
Total fee revenue 23,685 23,497 45,759 42,103
Total revenue 108,033 98,715 212,861 192,473
Operating expenses:
Salaries and employee benefits 37,338 33,572 74,029 66,634
Communications and equipment 4,978 4,393 9,896 8,683
Occupancy 4,908 4,538 9,857 9,261
Advertising and public relations 1,260 1,323 2,321 2,187
Postage, printing and supplies 1,346 1,298 2,716 2,578
Professional fees 2,371 3,189 5,415 5,889
FDIC assessments and other regulatory charges 1,348 1,517 2,631 3,041
Amortization of intangibles 900 987 1,873 1,997
Merger-related and other charges 1,830 1,176 3,884 3,829
Other 6,950 6,067 13,433 11,846
Total operating expenses 63,229 58,060 126,055 115,945
Net income before income taxes 44,804 40,655 86,806 76,528
Income tax expense 16,537 15,389 35,015 28,967
Net income 28,267 25,266 51,791 47,561
Preferred stock dividends and discount accretion - - - 21
Net income available to common shareholders $ 28,267 $ 25,266 $ 51,791 $ 47,540
Earnings per common share:
Basic $ .39 $ .35 $ .72 $ .66
Diluted .39 .35 .72 .66
Weighted average common shares outstanding:
Basic 71,810 72,202 71,798 72,187
Diluted 71,820 72,207 71,809 72,191

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
June 30, December 31,
(in thousands, except share and per share data) 2017 2016
ASSETS
Cash and due from banks $ 103,616 $ 99,489
Interest-bearing deposits in banks 129,570 117,859
Cash and cash equivalents 233,186 217,348
Securities available for sale 2,474,592 2,432,438
Securities held to maturity (fair value $316,583 and $333,170) 312,002 329,843
Mortgage loans held for sale (includes $24,109 and $27,891 at fair value) 25,711 29,878
Loans, net of unearned income 7,040,932 6,920,636
Less allowance for loan losses (59,500) (61,422)
Loans, net 6,981,432 6,859,214
Premises and equipment, net 189,614 189,938
Bank owned life insurance 155,026 143,543
Accrued interest receivable 26,938 28,018
Net deferred tax asset 119,594 154,336
Derivative financial instruments 21,640 23,688
Goodwill and other intangible assets 154,350 156,222
Other assets 143,325 144,189
Total assets $ 10,837,410 $ 10,708,655
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 2,818,668 $ 2,637,004
NOW 1,874,850 1,989,763
Money market 1,808,736 1,846,440
Savings 581,706 549,713
Time 1,273,112 1,287,142
Brokered 378,663 327,496
Total deposits 8,735,735 8,637,558
Short-term borrowings - 5,000
Federal Home Loan Bank advances 669,065 709,209
Long-term debt 175,363 175,078
Derivative financial instruments 24,260 27,648
Accrued expenses and other liabilities 100,346 78,427
Total liabilities 9,704,769 9,632,920
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized;
70,980,916 and 70,899,114 shares issued and outstanding 70,981 70,899
Common stock issuable; 550,449 and 519,874 shares 8,062 7,327
Capital surplus 1,277,822 1,275,849
Accumulated deficit (212,607) (251,857)
Accumulated other comprehensive loss (11,617) (26,483)
Total shareholders' equity 1,132,641 1,075,735
Total liabilities and shareholders' equity $ 10,837,410 $ 10,708,655

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2017 2016
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)$ 6,979,980 $ 74,8114.30% $ 6,150,654 $ 63,4854.15%
Taxable securities (3) 2,719,390 17,4212.56 2,720,061 16,6842.45
Tax-exempt securities (FTE) (1)(3) 55,992 5844.17 27,434 2443.56
Federal funds sold and other interest-earning assets 143,143 7432.08 138,622 9122.63
Total interest-earning assets (FTE) 9,898,505 93,5593.79 9,036,771 81,3253.62
Non-interest-earning assets:
Allowance for loan losses (61,163) (66,104)
Cash and due from banks 104,812 94,920
Premises and equipment 192,906 182,609
Other assets (3) 569,435 560,357
Total assets$ 10,704,495 $ 9,808,553
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW$ 1,901,890 635.13 $ 1,755,726 444.10
Money market 2,064,143 1,559.30 1,866,913 1,206.26
Savings 575,960 28.02 497,973 30.02
Time 1,274,009 1,136.36 1,205,066 675.23
Brokered time deposits 111,983 243.87 187,481 68.15
Total interest-bearing deposits 5,927,985 3,601.24 5,513,159 2,423.18
Federal funds purchased and other borrowings 37,317 1011.09 11,000 933.40
Federal Home Loan Bank advances 594,815 1,464.99 589,246 983.67
Long-term debt 175,281 2,8526.53 164,020 2,6656.53
Total borrowed funds 807,413 4,4172.19 764,266 3,7411.97
Total interest-bearing liabilities 6,735,398 8,018.48 6,277,425 6,164.39
Non-interest-bearing liabilities:
Non-interest-bearing deposits 2,731,217 2,383,894
Other liabilities 114,873 96,067
Total liabilities 9,581,488 8,757,386
Shareholders' equity 1,123,007 1,051,167
Total liabilities and shareholders' equity$ 10,704,495 $ 9,808,553
Net interest revenue (FTE) $ 85,541 $ 75,161
Net interest-rate spread (FTE) 3.31% 3.23%
Net interest margin (FTE) (4) 3.47% 3.35%
(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 39%, 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 gains of $6.58 million in 2017 and $12.3 million in 2016 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 Six Months Ended June 30,
2017 2016
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)$ 6,942,130 $ 147,5524.29% $ 6,077,111 $ 127,529 4.22%
Taxable securities (3) 2,749,339 34,8542.54 2,704,309 32,306 2.39
Tax-exempt securities (FTE) (1)(3) 49,125 1,0414.24 28,590 516 3.61
Federal funds sold and other interest-earning assets 144,577 1,4071.95 146,192 1,965 2.69
Total interest-earning assets (FTE) 9,885,171 184,8543.76 8,956,202 162,316 3.64
Non-interest-earning assets:
Allowance for loan losses (61,414) (67,289)
Cash and due from banks 102,048 90,278
Premises and equipment 191,509 181,350
Other assets (3) 573,281 560,813
Total assets$ 10,690,595 $ 9,721,354
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW$ 1,930,624 1,232.13 $ 1,821,100 929 .10
Money market 2,064,792 2,985.29 1,853,749 2,314 .25
Savings 568,339 55.02 489,106 59 .02
Time 1,269,005 1,951.31 1,232,378 1,492 .24
Brokered time deposits 105,199 436.84 210,347 (107)(.10)
Total interest-bearing deposits 5,937,959 6,659.23 5,606,680 4,687 .17
Federal funds purchased and other borrowings 28,225 1411.01 22,953 180 1.58
Federal Home Loan Bank advances 637,728 2,894.92 467,708 1,716 .74
Long-term debt 175,212 5,7286.59 164,720 5,350 6.53
Total borrowed funds 841,165 8,7632.10 655,381 7,246 2.22
Total interest-bearing liabilities 6,779,124 15,422.46 6,262,061 11,933 .38
Non-interest-bearing liabilities:
Non-interest-bearing deposits 2,687,665 2,315,468
Other liabilities 115,808 101,694
Total liabilities 9,582,597 8,679,223
Shareholders' equity 1,107,998 1,042,131
Total liabilities and shareholders' equity$ 10,690,595 $ 9,721,354
Net interest revenue (FTE) $ 169,432 $ 150,383
Net interest-rate spread (FTE) 3.30% 3.26%
Net interest margin (FTE) (4) 3.46% 3.38%
(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 39%, 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 gains of $638 thousand in 2017 and $7.28 million in 2016 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.

For more information: Jefferson Harralson Chief Financial Officer (706) 781-2265 Jefferson_Harralson@ucbi.com

Source:United Community Banks, Inc.