U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 1
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
CORE EARNINGS SUMMARY
Net interest revenue
Fee revenue
Operating expenses (excluding merger-related and impairment charges)
Pre-tax, pre-credit earnings
Provision for loan losses
Merger-related and other non-operating charges, net of taxes1
Operating income tax expense (excl. benefit on merger, impairment and deferred tax charges)
Net income
Preferred dividends
2016
2015
$ 309.8
$ 257.4
93.7
233.2
170.3
.8
(6.0)
(64.4)
100.7
(.1)
72.5
193.2
136.7
(3.7)
(11.6)
(49.8)
71.6
(.1)
Net income available to common shareholders
$ 100.6
$ 71.5
PER COMMON SHARE
Diluted earnings—GAAP
Diluted earnings—operating1
Book value
Tangible book value
PERFORMANCE MEASURES
Net interest margin
Allowance for loan losses to loans
Return on assets—GAAP
Return on assets—operating1
Return on common equity—GAAP
Return on tangible common equity—operating1
Equity to assets (year-end)
Tangible common equity to assets (year-end)
Tier 1 risk-based capital ratio (year-end)
AS OF YEAR-END
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
Beneficial owners
Employees
Banking offices
$ 1.40
1.48
15.06
12.95
$ 1.09
1.27
14.02
12.06
3.36 %
3.30 %
0.89
1.00
1.06
9.41
11.86
10.05
8.77
11.23
1.14
.85
.98
8.15
10.24
10.59
9.15
11.45
$ 6,921
$ 5,995
2,762
10,709
8,638
1,076
70,899
15,100
1,961
139
2,656
9,626
7,881
1,018
71,484
18,400
1,932
134
1 Excludes the effect of merger-related charges of $8.1 million and $12.0 million, net of taxes of $3.1 million and $4.0 million, respectively, in 2016 and
2015; a deferred tax asset impairment charge of $1.0 million in 2016 resulting from the cancellation of non-qualified stock options; and impairment
charges of $6.0 million, net of taxes of $2.4 million, in 2015 on real estate purchased in prior years for use as future branch sites.
2 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T
LET TER TO SHAREHOLDERS
2016 was an exceptional year for United, with strong financial performance and
significant progress in our strategic focus on growth markets, products, talent and
infrastructure. We earned $107 million in net operating income, or $1.48 per share
which is an increase of 17 percent from 2015, excluding merger-related and other
charges. Operating return on assets was 1.06 percent, up from .98 percent in 2015.
Our 2016 planning included an ambitious goal of 1.10 percent in operating return
on assets by the fourth quarter. Our bankers accepted the challenge and made
it happen, increasing return on assets—and return on common equity—every
successive quarter during the year.
They did this by serving customer needs extremely well, as they always do. They grew loans by $619 million,
or 10 percent over 2015, exceeding our growth target of high single digits. Bear in mind that this growth does
not include the acquisition of Tidelands Bank that was completed on July 1, 2016. More about that later. Our
bankers also increased core deposits by $489 million or 9 percent—again excluding Tidelands. Core deposits
funded nearly 80 percent of loan growth, and by year-end represented 93 percent of total customer deposits,
a very favorable mix that provides low-cost funding.
Fee revenue increased by 29 percent to $94 million, following 31 percent growth in 2015. We improved
our operating efficiency ratio from 58.5 percent to 57.8 percent, with disciplined expense controls and
achievement of cost saving targets from acquisitions. The ratio was 56.6 percent in the fourth quarter, the
lowest it has been in the past decade.
This performance has not gone unnoticed. In February of 2017, Forbes
magazine included United among the 100 best-performing banks in
America—for the fourth consecutive year.
STRATEGIC GROWTH
M A R K E T S
Our strategy for market expansion emphasizes high-growth areas within our four-state footprint. Georgia,
North Carolina, South Carolina and Tennessee are home to some of the fastest-growing Metropolitan
Statistical Areas (MSAs) in the country. Eighty-two percent of United banking offices are now in MSAs, up
from 70 percent a year ago, putting us in solid position for long-term growth.
U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 3
Nashville
Knoxville
Chattanooga
Blairsville
Gainesville
Atlanta
Asheville
Charlotte
Greenville
Columbia
Myrtle Beach
Macon
Charleston
Hilton Head Island
Savannah
Brunswick
Recent acquisitions have contributed to the 82 percent. You will recall that in September of 2015 we acquired
$1.2 billion-asset Palmetto Bank, the largest community bank in South Carolina’s fastest-growing region, the
Upstate area along the I-85 corridor. Two months later we completed step one of our coastal South Carolina
strategy with the opening of a regional commercial loan office in Charleston. In July 2016 we completed step
two with the acquisition of Tidelands Bank, which had $466 million in assets and locations in Charleston,
Hilton Head and Myrtle Beach. Our in-place Charleston team and our new bankers from Tidelands are working
together with good synergies, and we are excited about the prospects ahead. Charleston and Myrtle Beach
are located in two of the 12 fastest-growing MSAs in the country.
We surpassed $10 billion in assets during the year, a threshold that places banks at a higher level of regulatory
scrutiny, and cost, under the Dodd-Frank Act and Durbin Amendment. We believe the costs of additional
regulation will be overcome by our growth, especially given our expanding markets.
P R O D U C T S
Our specialty lending areas—commercial real estate, middle market, SBA, asset-based lending, senior living
and builder finance—grew by $363 million during the year to $855 million, and accounted for more than
half of our loan growth. 2016 was specialty lending’s third year in a hub-and-spoke model that allows us to
provide large-bank products with community bank service. This is a competitive advantage that continues
to grow, while diversifying our portfolio.
4 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T
THE POWER OF THREE
As I have said before, United is a three-legged stool supported by customers, bankers and shareholders. It
can stand only with proper balance among the underpinnings, each of which has its own requirements.
Customers want and need services of value, delivered professionally. Bankers prosper in a culture of respect,
camaraderie and opportunity. Shareholders look for and deserve a compelling return on investment that
rewards their trust and commitment. Each of these legs is strong, and all are interdependent.
C U S T O M E R S
We call ourselves “The Bank that Service Built,” and the building continues as we take care of existing
customers and begin serving new ones. United bankers consistently achieve excellent customer satisfaction
scores in monthly surveys by Customer Service Profiles, the banking industry leader in customer research
and improvement. JD Power & Associates agrees with this assessment: During 2016, and for the third
consecutive year, the global market research firm ranked United first in customer satisfaction in the
southeastern United States.
Investments in technology-based service are important as digital banking continues to grow at a rapid
pace. Nearly 85 percent of our customer transactions are now conducted by debit card, telephone, online
or by smartphone. To provide the convenient access that customers expect, we invested in state-of-the-art
teller platforms and telecommunications during 2015, and in a new mobile banking platform in 2016. With
privacy of customer information a top priority, we take care to ensure that electronic delivery channels are
safe and secure.
As customers migrate to technology we are seeing fewer day-to-day transactions at some branch offices.
Branches continue to provide value, however, as centers for account openings, certain transactions, financial
advice and personal interactions. The value to customers isn’t the building but the bankers inside, especially
when they are national leaders in customer service.
B A N K E R S
Our simultaneous high ranking in customer satisfaction and financial performance is no coincidence: The
two are inextricably linked. Banks are similar in the ways technology delivers their products; the difference is
how their people deliver them.
Customers want to do business with bankers who are knowledgeable,
attentive, caring and genuine. They find them at United Community Bank,
where people live by the Golden Rule of treating people the way they want
to be treated. Honestly, they serve customers so well that sometimes I
wonder how they can get better. They always do; they always find a way.
U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 5
S H A R E H O L D E R S
Our shareholders have many options for investing their money, and we are grateful that they have chosen
United. Every day we commit ourselves to providing a solid return on their investment, while managing risk
carefully. Our growth in loans, deposits and fee revenue, our focus on operating efficiency and our strategic
expansion are testimony to that commitment.
I have shared with you a number of performance metrics that drive earnings per share, which, at the end of
the day, drives the value of our stock and our ability to pay dividends. Operating earnings per share grew
14 percent in 2015, and another 17 percent in 2016. Not coincidentally, our stock price increased 56 percent
during those two years; and our dividend increased 72 percent. We weren’t done yet: In the first quarter of
2017 we increased the dividend again, this time by 13 percent—the fourth dividend increase in 18 months.
NEW DIRECTORS JOIN US, AND A VALUED COLLEAGUE RETIRES
We were delighted to welcome David Shaver and David Wilkins to our board of directors in 2016. Both are
exceptional leaders. David Shaver has a distinguished financial, accounting and entrepreneurial background
that is a tremendous asset for us. David Wilkins’s accomplished legal career and experience in government,
education and business are valuable as we execute our growth strategies.
In bittersweet news, Rex Schuette, our CFO for the past 16 years, will retire in 2017. I cannot overstate the
value of Rex’s service, or my good fortune of having him as a colleague. I could not count the times when
his deep financial expertise and sound judgment played a major role in our decision-making, serving United
extremely well. To ensure an orderly transition, he has graciously agreed to stay on until his successor is on
board. His successor will benefit from the strong financial team that Rex has built. All of us wish him the very
best in his retirement.
THE FUTURE
2017 brings challenges and opportunities, as every year does. Our job is
to recognize and overcome the challenges, and identify and realize the
opportunities. Change is in the wind for financial services, with possibilities
for regulatory reform, higher interest rates and federal tax rate reductions,
just to name a few. We will monitor these developments and any related
impact for United.
What we know will not change is our business model of large bank resources with small bank service, a
combination that our established markets value and our new markets welcome. Our bankers, while achieving
loan and deposit growth, diversifying income sources and participating in our strategic expansion, are
providing world-class service that drives exceptional performance and makes United Community Bank the
best it can be.
6 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T
While taking nothing for granted, we are in a good place. Our markets are attractive, our deposit base cost
is low, our products serve diverse customer needs and our delivery systems are state-of-the-art. These
advantages and more, with their underlying foundation of satisfied customers, extraordinary bankers and
loyal shareholders, are the three-legged stool that is United. Our charge and our commitment is to strengthen
this foundation by earning customer loyalty and supporting the bankers who serve so uniquely well.
For all that we do, the end goal is to increase value for the shareholders who make it all possible. We
deeply appreciate the faith you have placed in us, and strive every day to earn your confidence and
reward your trust.
Sincerely,
Jimmy Tallent
U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 7
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
INTEREST REVENUE
Loans, including fees
Investment securities:
Taxable
Tax exempt
Deposits in banks and short-term investments
Total interest revenue
INTEREST EXPENSE
Deposits:
NOW
Money market
Savings
Time
Total deposit interest expense
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Total interest expense
Net interest revenue
(Release of ) provision for credit losses
Net interest revenue after provision for credit losses
FEE REVENUE
Service charges and fees
Mortgage loan and other related fees
Brokerage fees
Gains from sales of government guaranteed loans
Securities gains, net
Losses on prepayment of borrowings
Other
Total fee revenue
Total revenue
OPERATING EXPENSES
Salaries and employee benefits
Occupancy
Communications and equipment
FDIC assessments and other regulatory charges
Professional fees
Postage, printing and supplies
Advertising and public relations
Amortization of intangibles
Foreclosed property
Merger-related and other charges
Other
Total operating expenses
Income before income taxes
Income tax expense
Net income
Preferred stock dividends
Net income available to common shareholders
Income per common share:
Basic
Diluted
Weighted average common shares outstanding:
Basic
Diluted
8 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T
2016
2015
2014
$ 268,382
$ 223,256
$ 196,279
63,413
614
2,611
335,020
1,903
4,982
135
3,136
10,156
399
3,676
11,005
25,236
309,784
(800)
310,584
42,113
20,292
4,280
9,545
982
-
16,485
93,697
404,281
138,789
19,603
18,355
5,866
11,822
5,382
4,426
4,182
1,051
8,122
23,691
241,289
162,992
62,336
100,656
21
51,143
705
3,428
278,532
1,505
3,466
98
3,756
8,825
364
1,743
10,177
21,109
257,423
3,700
253,723
36,825
13,592
5,041
6,276
2,255
(1,294)
9,834
72,529
326,252
116,688
15,372
15,273
5,106
10,175
4,273
3,667
2,444
32
17,995
20,213
211,238
115,014
43,436
71,578
67
47,755
738
3,660
248,432
1,651
3,060
81
7,133
11,925
2,160
912
10,554
25,551
222,881
8,500
214,381
33,073
7,520
4,807
2,615
4,871
(4,446)
7,114
55,554
269,935
100,941
13,513
12,523
4,792
7,907
3,542
3,461
1,348
634
-
14,204
162,865
107,070
39,450
67,620
439
$ 100,635
$ 71,511
$ 67,181
$ 1.40
1.40
$ 1.09
1.09
$ 1.11
1.11
71,910
71,915
65,488
65,492
60,588
60,590
CONSOLIDATED BALANCE SHEET
(in thousands, except share data)
ASSETS
Cash and due from banks
Interest-bearing deposits in banks
Cash and cash equivalents
Securities available-for-sale
Securities held-to-maturity (fair value $333,170 and $371,658)
Mortgage loans held for sale (includes $27,891 and $0 at fair value)
Loans, net of unearned income
Less allowance for loan losses
Loans, net
Premises and equipment, net
Bank owned life insurance
Accrued interest receivable
Net deferred tax asset
Derivative financial instruments
Goodwill and other intangible assets
Other assets
Total assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand
NOW
Money market
Savings
Time
Brokered
Total deposits
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Derivative financial instruments
Accrued expenses and other liabilities
Total liabilities
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series H, $1,000 stated value; 0 and 9,992 shares issued and outstanding
Common stock, $1 par value; 150,000,000 shares authorized;
70,899,114 and 66,198,477 shares issued and outstanding
Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
0 and 5,285,516 shares issued and outstanding
Common stock issuable; 519,874 and 458,953 shares
Capital surplus
Accumulated deficit
Accumulated other comprehensive loss
Total shareholders’ equity
Total liabilities and shareholders’ equity
2016
2015
$ 99,489
117,859
217,348
2,432,438
329,843
29,878
6,920,636
(61,422)
6,859,214
189,938
143,543
28,018
154,336
23,688
156,222
144,189
$10,708,655
$ 2,637,004
1,989,763
1,846,440
549,713
1,287,142
327,496
8,637,558
5,000
709,209
175,078
27,648
78,427
9,632,920
$ 86,912
153,451
240,363
2,291,511
364,696
24,231
5,995,441
(68,448)
5,926,993
178,165
105,493
25,786
197,613
20,082
147,420
94,075
$ 9,616,428
$ 2,204,755
1,975,884
1,599,637
471,129
1,282,803
338,985
7,873,193
16,640
430,125
163,836
28,825
85,524
8,598,143
-
9,992
70,899
66,198
-
7,327
1,275,849
(251,857)
(26,483)
1,075,735
$10,708,655
5,286
6,779
1,286,361
(330,879)
(25,452)
1,018,285
$ 9,616,428
U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 9
SELECTED DATA—QUARTERLY SUMMARY
(in millions, except per share data)
EARNINGS SUMMARY
Net interest revenue
Fee revenue
Total revenue
Operating expenses (1)
Pre-tax, pre-credit earnings (1)
Provision for loan losses
Merger-related and other non-operating charges, net of tax effect
Operating income tax expense (2)
Net income
Preferred dividends
Net income available to common shareholders
2016
Q4
Q3
Q2
Q1
$ 80.9
25.2
106.1
60.2
45.9
-
(1.7)
(17.0)
27.2
-
$ 27.2
$ 79.0
26.4
105.4
60.9
44.5
.3
(1.9)
(17.0)
25.9
-
$ 25.9
$ 74.9
23.5
98.4
56.9
41.5
.3
(0.8)
(15.8)
25.2
-
$ 25.2
$ 75.0
18.6
93.6
55.2
38.4
.2
(1.7)
(14.5)
22.4
(.1)
$ 22.3
2015
Q4
$ 73.8
21.3
95.1
56.4
38.7
(.3)
(5.6)
(14.6)
18.2
-
$ 18.2
PERFORMANCE MEASURES
Per common share:
Diluted earnings—GAAP
Diluted earnings—operating (3)
Book value
Tangible book value (4)
Key performance ratios:
Net interest margin (5)
Return on assets —GAAP (5)
Return on assets—operating (3)(5)
Return on common equity—GAAP (5)(6)
Return on common equity—operating (3)(5)(6)
Return on tangible common equity—operating (3)(5)(6)
Equity to assets (period-end)
Tangible equity to assets (period-end) (4)
Tangible common equity to assets (period-end) (4)
ASSET QUALITY
Non-performing loans
Foreclosed properties
Total non-performing assets (NPAs)
Allowance for loan losses
Net charge-offs
Allowance for loan losses to loans
Net charge-offs to average loans (5)
NPAs to loans and foreclosed properties
NPAs to total assets
AT PERIOD END
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding
$ .38
.40
15.06
12.95
$ .36
.39
15.12
13.00
$ .35
.36
14.80
12.84
$ .31
.33
14.35
12.40
$ .25
.33
14.02
12.06
3.34 %
1.03
1.10
9.89
10.51
12.47
10.05
8.77
8.77
3.34 %
1.00
1.08
9.61
10.34
12.45
10.48
9.15
9.15
3.35 %
1.04
1.07
9.54
9.81
11.56
10.67
9.40
9.40
3.41 %
.93
1.00
8.57
9.20
10.91
10.57
9.27
9.27
3.34 %
.76
.99
7.02
9.18
10.87
10.59
9.26
9.15
$ 21.5
8.0
29.5
61.4
1.5
.89 %
.09
.43
.28
$ 21.6
9.2
30.8
63.0
1.4
.94 %
.08
.46
.30
$ 21.3
6.2
27.5
64.3
1.7
1.02 %
.11
.44
.28
$ 22.4
5.2
27.6
66.3
2.1
1.09 %
.14
.45
.28
$ 22.6
4.9
27.5
68.4
1.3
1.14 %
.09
.46
.29
$ 6,921
2,762
10,709
8,638
1,076
70.9
$ 6,725
2,560
10,298
8,442
1,079
70.9
$ 6,287
2,677
9,928
7,857
1,060
71.1
$ 6,106
2,757
9,781
7,960
1,034
71.5
$ 5,995
2,656
9,616
7,873
1,018
71.5
(1) Excludes merger-related charges and impairment charges on real estate purchased in prior years for future branch sites. (2) Excludes the income tax benefit on merger-related charges
and impairment charges on real estate purchased in prior years for future branch sites and excludes a charge for impairment of deferred tax assets related to cancelled non-qualified stock
options. (3) Excludes the after-tax effect of merger-related charges and impairment charges on real estate purchased in prior years for future branch sites and a charge for impairment of
deferred tax assets related to cancelled non-qualified stock options. (4) Excludes the effect of acquisition related intangible assets. (5) Annualized. (6) Net income available to common
shareholders, which is net of preferred dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
1 0 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T
CORPORATE INFORMATION
FINANCIAL INFORMATION
Analysts and investors seeking financial
information should contact:
Rex S. Schuette
Executive Vice President and CFO
706-781-2265
rex_schuette@ucbi.com
This Annual Report contains forward-looking
statements that involve risk and uncertainty
and actual results could differ materially from
the anticipated results or other expectations
expressed in the forward-looking statements.
A discussion of factors that could cause actual
results to differ materially from those expressed
in the forward-looking statements is included in
the Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
This Annual Report also contains financial
measures that were prepared on a basis
different from accounting principles generally
accepted in the United States (“GAAP”).
References to operating performance measures
are non-GAAP financial measures. Management
has included such non-GAAP financial measures
because such non-GAAP measures exclude
certain non-recurring revenue and expense
items and therefore provide a meaningful basis
for analyzing financial trends. A reconciliation
of these measures to financial measures
determined using GAAP is included in the
Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
STOCK PRICE
Quarter
High
Low
Close
Average Daily
Volume
2015
2016
4th
1st
2nd
3rd
4th
$ 22.23
$ 18.61
$ 19.49
376,214
$ 19.27
$ 15.74
$ 18.47
20.60
21.13
30.22
17.07
17.42
20.26
18.29
21.02
29.62
440,759
771,334
379,492
532,944
INVESTOR INFORMATION
Investor information including this
report, Form 10-K, quarterly financial
results, press releases and various other
reports are available at ir.ucbi.com.
Alternatively, shareholders may contact
Investor Relations at 866-270-5900 or
investor_relations@ucbi.com.
STOCK EXCHANGE
United Community Banks, Inc. (Ticker:
UCBI) common stock is listed for trading on
the NASDAQ Global Select Market.
INDEPENDENT REGISTERED
PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP, Atlanta, GA
LEGAL COUNSEL
Troutman Sanders LLP, Atlanta, GA
REGISTRAR TRANSFER AGENT
Continental Stock Transfer & Trust Co.
17 Battery Park, 8th Floor
New York, NY 10004
212-509-4000 | continentalstock.com
EQUAL OPPORTUNITY
EMPLOYER
United Community Banks is an equal
opportunity employer. All matters
regarding recruiting, hiring, training,
compensation, benefits, promotions,
transfers and other personnel policies will
remain free from discriminatory practices.
United Community Banks, Inc. ©2017
BOARD OF DIRECTORS
W.C. Nelson, Jr.
Lead Director
Co-Owner and Operator
Nelson Tractor Co.
Jimmy C. Tallent
Chairman, Chief Executive Officer
Robert H. Blalock
Chief Executive Officer
Blalock Insurance Agency, Inc.
L. Cathy Cox
President
Young Harris College
Kenneth L Daniels
Retired Chief Credit Risk
and Policy Officer
BB&T Corporation
H. Lynn Harton
President, Chief Operating Officer
Thomas A. Richlovsky
Retired Chief Financial Officer
and Treasurer
National City Corporation
David C. Shaver
Chief Executive Officer
Cost Segregation Advisors, LLC
Tim R. Wallis
Owner and President
Wallis Printing Company
David H. Wilkins
Partner
Nelson, Mullins, Riley & Scarborough, LLP
EXECUTIVE OFFICERS
Jimmy C. Tallent
Chairman, Chief Executive Officer
H. Lynn Harton
President, Chief Operating Officer
Rex S. Schuette
Executive Vice President,
Chief Financial Officer
Bill M. Gilbert
President, Community Banking
Robert A. Edwards
Executive Vice President,
Chief Credit Officer
Bradley J. Miller
Executive Vice President,
Chief Risk Officer, General Counsel
Richard W. Bradshaw
President, Specialized Lending
U N I T E D C O M M U N I T Y B A N K S , I N C . 2016 A N N UA L R E P O R T | 11
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