United Community Banks
Annual Report 2017

Plain-text annual report

ANNUAL REPORT 2017 U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 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 other non-operating charges) Pre-tax, pre-credit earnings Provision for credit losses Merger-related and other non-operating charges, net of taxes Operating income tax expense (excl. benefit on merger, and other non-operating charges) Net income Preferred dividends 2017 2016 $ 355.9 $ 309.8 88.3 252.9 191.3 (3.8) (52.5) (67.2) 67.8 - 93.7 233.2 170.3 .8 (6.0) (64.4) 100.7 (.1) Net income available to common shareholders $ 67.8 $ 100.6 PER COMMON SHARE Diluted earnings—GAAP Diluted earnings—operating (1) Cash dividends declared Book value Tangible book value PERFORMANCE MEASURES Net interest margin Allowance for loan losses to loans Return on assets—GAAP Return on assets—operating (1) Return on common equity—GAAP Return on tangible common equity—operating (1) Average equity to average assets Average tangible common equity to average assets Tier 1 risk-based capital ratio AS OF YEAR-END Loans Investment securities Total assets Deposits Shareholders’ equity Common shares outstanding (thousands) Beneficial owners Employees Banking offices $ .92 1.63 $ 1.40 1.48 .38 16.67 13.65 .30 15.06 12.95 3.52 % 3.36 % .76 .62 1.09 5.67 12.02 10.71 9.29 12.24 .89 1.00 1.06 9.41 11.86 10.54 9.19 11.23 $ 7,736 $ 6,921 2,937 11,915 9,808 1,303 77,580 17,700 2,175 156 2,762 10,709 8,638 1,076 70,899 15,100 1,961 139 (1) Excludes the effect of merger-related and other non-operating charges of $14.7 million and $8.1 million, respectively, in 2017 and 2016; impact of remeasurement of net deferred tax asset resulting from 2017 Tax Cuts and Jobs Act of $38.2 million; release of disproportionate tax effects lodged in accumulated other comprehensive income (loss) of $3.4 million in 2017; impairment charge of $1.0 million in 2016 resulting from the cancellation of nonqualified stock options. 2 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T LET TER TO SHAREHOLDERS For the past three years, I have opened this letter by describing our results as exceptional, outstanding and transformative. Thanks to the efforts of our bankers, the commitment of our shareholders and the goodwill and loyalty of our customers, I can characterize 2017 with all three of those adjectives once again, and a few more as well. It was truly a momentous year: 1. After crossing the $10 billion-asset threshold, United Community Bank became regulated as a large financial institution. This transition has caused some banks to stumble; however, with careful planning and prudent management, we absorbed the impacts and generated outstanding financial and operating results. We improved operating efficiency, increased earnings and upped our dividend by 27 percent. 2. We retained our position as J.D. Power’s top-ranked bank for customer satisfaction in the Southeast. Leading trade organizations and media recognized us as a top workplace in Georgia and South Carolina and across our industry. 3. Organic growth and strategic acquisitions once again served us well. Our merger with Horry County State Bank solidifies our coastal strategy in South Carolina, and the acquisition of Four Oaks Bank & Trust Company grants entry into North Carolina’s fast-growing Raleigh-Durham market. We increased core deposits by more than $600 million and made key decisions on the lending side that allowed us to grow our portfolio while making a planned exit from the auto lending business. So what else can we say about 2017? In a year so full of success, perhaps the best thing to say is “Thank you.” Thanks to our shareholders, our customers and our bankers for the opportunity to deliver these results. Let’s look at how we got there. FINANCE & OPERATIONS Crossing the $10 billion threshold and becoming regulated as a large financial institution under the Dodd-Frank Act in the third and fourth quarter was a hurdle for which we had been preparing since 2016. That preparation paid off in a major way. The financial impact is significant to the tune of $3.3 million per quarter: lost revenue of approximately $2.7 million from the impact of the Durbin amendment—which caps the amount of interchange fees that banks can charge merchants for accepting their debit cards–and a $600,000 increase in quarterly expense due to the large bank deposit insurance assessment model. But not only did we absorb these impacts, we continued to grow earnings. Our work to establish the structure to manage this impact while putting strategies in place to enhance our strong performance is a truly monumental achievement. Our operating financial results were strong. We earned $120 million in net operating income, or $1.63 per share—a 10 percent increase from 2016. Operating return on assets was 1.09 percent, up from 1.06 percent in 2016. Operating return on tangible common equity also climbed, from 11.86 percent in 2016 to 12.02 percent in 2017. Our accomplishments are even more remarkable considering the financial impact of the Durbin amendment and associated higher FDIC expenses. U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T | 3 We continued to grow our loan portfolio steadily and prudently. At year-end, total loans were $7.736 billion, up $815 million from a year ago, including $702 million in loans from acquisitions. Masking strong organic loan growth for 2017 was our second-quarter decision to discontinue purchases of indirect auto loans, decreasing our outstanding balances by $101 million from last year-end. Although the credit quality of our indirect auto loans remains outstanding, rising interest rates made the returns less attractive. Allowing those loans to run off allows us to reinvest in higher-yielding opportunities generated by our mortgage, Commercial Banking Solutions and traditional lending groups (more on these plans later). We achieved strong core deposit growth in 2017, an achievement of which we are very proud. Core deposits are the lifeblood of the banking industry, and the true value of a banking franchise is found in its core deposit base. This is another area where our bankers truly excelled. Not only were we able to grow our core deposits by $623 million excluding acquisitions; we were able to do this in a rising rate environment without significantly increasing our deposit pricing. This helped increase our net interest margin by 16 basis points year-over-year. Our cost of total deposits is 13 basis points lower than our peer group, driven primarily by the high-quality core deposit base of our company, which we continued to grow intentionally throughout the economic downturn. These high-quality core deposits and our year-end loan-to-deposit ratio of 79 percent allow plenty of room for additional loan growth. Our credit quality is among the best in our peer group, with non-performing assets to total assets at .23 percent, down five basis points year-over-year. Our net charge-offs to average loans were only eight basis points for the entire year—this is the best performance we have had in decades. Fee revenue—including non-interest income—declined by 6 percent in 2017, largely due to the cap on interchange fees imposed by the Durbin amendment, but we more than covered this gap with strong growth in net interest revenue. Our operating efficiency ratio improved to 56.67 percent as our bankers continued to find efficient ways to leverage their time, talents and technology to serve our customers extraordinarily well without adding overhead. Importantly, this improved efficiency has not come at the expense of United’s golden rule of banking: to treat our customers as we would want to be treated. We’ve made key investments in our online banking platform, telephone banking and branches so we can continue to offer top-notch service no matter how our customers engage with us. Traditional branching is still critical to serving our customers well—but it must be balanced with advancements in the rapidly growing online and mobile space. More than 150,000 United Community Bank customers are now enrolled in online and mobile banking, a 14 percent year- over-year increase, with a 63 percent increase in the use of mobile banking alone in 2017. The average online and mobile user logs into his or her account more than 15 times per month, and in the fourth quarter we averaged 37,400 mobile deposits per month. This is a 38 percent year- over-year increase. As our customers become increasingly comfortable with the convenience of mobile banking technology, we must continue investing in secure, user-friendly options to meet their needs. 4 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T CULTURE & QUALITY Our foundation is the connection between our bankers—who are the best in the business—and our customers. We are proud that J.D. Power has once again recognized United as the top bank in customer satisfaction in the Southeast, and one of the best in the nation. Also, Forbes has again highlighted us as one of the nation’s top 50 banks. As we continue to grow, we must focus relentlessly on our heritage of recruiting and retaining the very best people. That requires cultivating the right work environment, and it is a pleasure to watch United Community Bank President and CEO, Lynn Harton, continue to build and reinforce an unmatched culture. Those efforts do not go unnoticed: American Banker highlighted United as a “Best Bank to Work For in 2017,” while consulting firms and media outlets have named us among the top workplaces in South Carolina and metropolitan Atlanta. Our approach combines the resources and advantages of a regional bank with the customer service of a community bank. We may be regulated as a “big bank,” but our focus is on acting small while providing big-bank resources. Every day, our bankers in Tennessee, Georgia, North Carolina, South Carolina and beyond follow our golden rule of banking, reinforcing the foundation of ‘The Bank that Service Built®’. STRATEGY & GROWTH While executing on financial, operational and service goals, our leadership team maintains focus on the larger picture—the future of United. Our formula, while not complex, is difficult to replicate: build and grow a footprint in high-growth metropolitan statistical areas (MSAs) and in rural communities that generates core deposits and traditional and specialized lending opportunities. Two elements are crucial to our formula’s success: a high-quality balance sheet that provides flexibility in a rising rate environment, and our bankers’ relentless, caring customer focus. We added more bankers that share our focus in 2017 with the completion of two mergers. One was with Horry County State Bank in the Myrtle Beach MSA, solidifying our position as a leading bank along the fast-growing South Carolina coast. The second merger was with Four Oaks Bank & Trust Company, a 105-year-old bank in the Raleigh MSA, North Carolina’s fastest-growing market. Four Oaks is ranked number 2 in market share among local community banks in the MSA and has 12 locations in this highly attractive area. Both acquisitions are immediately accretive to fully diluted operating earnings per share. As a result of these moves, our footprint has grown once again, with significant operations in four states in some of the strongest metro areas in North Carolina, Tennessee, South Carolina and Georgia. The demographics of our markets are enviable—the anticipated five-year growth rate within our footprint is 5.1 percent (versus 3.5 percent nationally) with projected household income growth in those areas higher than the national average. Our ability to work in fast-growing urban and suburban areas—more than 80 percent of our branches are in metropolitan statistical areas— as well as strong rural communities is a hallmark of the United brand and sets us apart from many of our competitors. U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T | 5 Our Commercial Banking Solutions business—now entering its fourth year—continues to differentiate us and drive incremental growth. The power of this unit is not just the experienced and specialized lenders who staff it, but their remarkable partnership with our community bankers, who are able to bring large-bank products and resources to customers who often can’t access them without big-bank headaches. Just one example is our Small Business Administration lending efforts. Three years after starting this business and four months into the Small Business Administration’s fiscal year, we are ranked 13th in the country in SBA approvals. We have lenders with deep expertise focused on customers in industries from senior care to manufacturing. The Commercial Banking Solutions group’s growth is just part of the story; our traditional lending division—focused on real estate, construction, and small business—also continues to drive earnings with a healthy and diverse lending income stream. A GLANCE AHEAD While no year is without challenges, we are optimistic that 2018 will continue to offer outstanding opportunities for our bankers to serve their customers. This belief is informed by several factors, but the most notable one is the Tax Cuts and Jobs Act of 2017, which has the potential to significantly benefit the economy and our business in the years ahead. While the new tax law had a negative one-time impact on our fourth-quarter earnings (as it did for most banks), the new lower corporate rate will directly benefit our business. Even more importantly, if national projections and initial signs in the marketplace are accurate, the tax law will stimulate the economy, inspire consumer confidence, and strongly encourage investments by small, medium, and large businesses, generating the loan demand that fuels earnings growth. Secondly, our first-quarter 2018 acquisition of NLFC Holding Corp., the parent company of Navitas Credit Corp., allows us to offer a product we have sought to provide to our customers for some time. Navitas—led by founder and CEO, Gary Shivers, along with an exceptional management team—has expertise in equipment finance that adds significant capability to our Commercial Banking Solutions unit, covering a gap in our product mix. The commercial equipment business is evolving, with purchasers expecting point-of-sale financing options, and Navitas is uniquely qualified in this space. The acquisition’s timing is ideal for two reasons: 1) tax reform should lead to an increase in equipment purchases and more demand for equipment financing; and 2) Navitas’ healthy pipeline allows us to replace the lower yielding auto loans mentioned earlier as they roll off with higher yielding opportunities. The Navitas deal will be immediately accretive to earnings, with strong yields as we deploy our low-cost core deposits to fund its loans. We will continue to look for potential partners while remaining selective. Our partners must have a talent pool and location that complement our strategy, along with a high-quality asset base, strong leaders and a healthy culture. Navitas, Horry County and Four Oaks are ideal partners that understand, fit and embrace the United model. With these positive impacts, a relentless focus on customer service and a strengthening economy, we have targeted a 1.40 percent return on assets and a 16 percent return on tangible common equity by the end of 2018. 6 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T LEADERSHIP UPDATES In July, Lynn Harton was named CEO of United Community Bank, our banking subsidiary. His leadership efforts to enhance our culture, drive efficiency and develop and execute our strategy cannot be overstated. Nor can the extraordinary quality of our senior leadership team: Chief Financial Officer, Jefferson Harralson; Chief Credit Officer, Rob Edwards; General Counsel and Chief Risk Officer, Brad Miller; Community Banking President, Bill Gilbert; and Commercial Banking Solutions President, Rich Bradshaw. This group makes sure we stay on-strategy and on-target while delivering the environment and success that engage our bankers, customers and you: our shareholders. One key factor in our success for more than 45 years has been W.C. Nelson. Starting as a bank director in 1973 when our bank had only one location in Union County, W.C. was one of the original directors of United Community Banks. He has served in many capacities through the years, including Chairman, Lead Director and Vice Chairman. On a personal note, he helped recruit me to United Community Bank more than 35 years ago, and I can promise our shareholders that this bank, and the communities we serve, would not be the same without him. W.C., we applaud you not just for your time served, but for your vision and dedication, and wish you well in retirement. As visionaries like W.C. depart, we will continue to focus on the path ahead, as he would no doubt remind us. On behalf of every member of the United team, thank you for your support. We pledge to you our commitment and best effort toward another exceptional year. 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 . 2017 A N N UA L R E P O R T | 7 CONSOLIDATED STATEMENTS 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 2017 2016 2015 $ 315,050 $ 268,382 $ 223,256 70,172 2,216 2,282 389,720 3,365 7,033 135 6,529 17,062 352 6,095 10,226 33,735 355,985 3,800 352,185 38,295 18,320 4,633 10,493 42 - 16,477 88,260 440,445 153,098 20,344 19,660 6,534 12,074 5,952 4,242 4,845 1,254 13,901 25,707 267,611 172,834 105,013 67,821 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 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 Net income available to common shareholders $ 67,250 $ 100,635 $ 71,511 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 . 2017 A N N UA L R E P O R T $ .92 .92 $ 1.40 1.40 $ 1.09 1.09 73,247 73,259 71,910 71,915 65,488 65,492 CONSOLIDATED BALANCE SHEETS (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 $321,276 and $333,170) Mortgage loans held for sale (includes $26,252 and $27,891 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 shares issued and outstanding Common stock, $1 par value; 150,000,000 shares authorized; 77,579,561 and 70,899,114 shares issued and outstanding Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 0 shares issued and outstanding Common stock issuable; 607,869 and 519,874 shares Capital surplus Accumulated deficit Accumulated other comprehensive loss Total shareholders’ equity Total liabilities and shareholders’ equity 2017 2016 $ 129,108 185,167 314,275 2,615,850 321,094 32,734 7,735,572 (58,914) 7,676,658 208,852 188,970 32,459 88,049 22,721 244,397 169,401 $11,915,460 $ 3,087,797 2,131,939 2,016,748 651,742 1,548,460 371,011 9,807,697 50,000 504,651 120,545 25,376 103,857 10,612,126 $ 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 - - 77,580 70,899 - 9,083 1,451,814 (209,902) (25,241) 1,303,334 $11,915,460 - 7,327 1,275,849 (251,857) (26,483) 1,075,735 $10,708,655 U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 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 credit losses Merger-related and other non-operating charges, net of tax effect Operating income tax expense (2) Net income PERFORMANCE MEASURES Per common share: Diluted net income—GAAP Diluted net income—operating (3) Cash dividends declared 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)(4)(5)(6) Average equity to assets Average tangible equity to assets (4) Average tangible common equity to assets (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 2017 Q4 Q3 Q2 Q1 $ 97.5 21.9 119.4 68.5 50.9 (1.2) (1.2) (44.4) (17.3) (12.0) (12.0) $ 89.8 20.6 110.4 62.3 48.1 (1.0) (1.0) (2.3) (16.8) 28.0 $ 85.1 23.7 108.8 61.4 47.4 (.8) (.8) (1.1) (17.2) 28.3 $ 83.5 22.1 105.6 60.7 44.9 (.8) (.8) (4.7) (15.9) 23.5 2016 Q4 $ 80.9 25.2 106.1 60.2 45.9 - (1.7) (17.0) 27.2 $ (.16) (.16) .42 .10 16.67 13.65 $ .38 .41 .10 16.50 14.11 $ .39 .41 .09 15.83 13.74 $ .33 .39 .09 15.40 13.30 $ .38 .40 .08 15.06 12.95 3.63 % (.40) (.40) 1.10 (3.57) (3.57) 9.73 11.93 11.21 9.52 9.52 3.54 % 1.01 1.09 9.22 9.97 11.93 10.86 9.45 9.45 3.47 % 1.06 1.10 9.98 10.39 12.19 10.49 9.23 9.23 3.45 % .89 1.07 8.54 10.25 12.10 10.24 8.96 8.96 3.34 % 1.03 1.10 9.89 10.51 12.47 10.35 9.04 9.04 $ 23.7 3.2 26.9 58.9 1.1 .76 % .06 .35 .23 $ 23.0 2.7 25.7 58.6 1.6 .81 % .09 .36 .23 $ 23.1 2.7 25.8 60.0 1.6 .85 % .09 .37 .24 $ 19.8 5.1 24.9 60.5 2.7 .87 % .10 .36 .23 $ 21.5 8.0 29.5 61.4 1.5 .89 % .09 .43 .28 $ 7,736 2,937 11,915 9,808 1,303 77.6 $ 7,203 2,847 11,129 9,127 1,221 73.4 $ 7,041 2,787 10,837 8,736 1,133 71.0 $ 6,965 2,767 10,732 8,752 1,102 71.0 $ 6,921 2,762 10,709 8,638 1,076 70.9 (1) Excludes merger-related and other non-operating charges. (2) Excludes the fourth quarter 2017 impact of remeasurement of United’s net deferred tax asset following the passage of tax reform legislation, a first quarter 2017 release of disproportionate tax effects lodged in accumulated other comprehensive income (loss) and a fourth quarter 2016 deferred tax asset impairment charge related to cancelled non-qualified stock options. (3) Excludes the impact of remeasurement of United net deferred tax asset following the passage of tax reform legislation and release of disproportionate tax effects lodged in accumulated other comprehensive income (loss) and after-tax effect of merger-related charges and a charge for impairment of deferred tax assets related to cancelled nonqualified stock options. (4) Excluded the effect of acquisition related intangible assets. (5) Annualized. (6) Net income 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 . 2017 A N N UA L R E P O R T CORPORATE INFORMATION FINANCIAL INFORMATION Analysts and investors seeking financial information should contact: Jefferson L. Harralson Executive Vice President and CFO 864-240-6208 jefferson_harralson@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 2016 2017 4th 1st 2nd 3rd 4th $ 30.22 $ 20.26 $ 29.62 532,944 $ 30.47 $ 25.29 $ 27.69 28.57 29.02 29.60 25.39 24.47 25.76 27.80 28.54 28.14 459,018 402,802 365,102 365,725 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. 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 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 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. BOARD OF DIRECTORS Thomas A. Richlovsky Lead Director Retired Chief Financial Officer and Treasurer National City Corporation Jimmy C. Tallent Chairman, Chief Executive Officer Robert H. Blalock Chief Executive Officer Blalock Insurance Agency, Inc. L. Cathy Cox Dean School of Law, Mercer University Kenneth L. Daniels Retired Chief Credit Risk and Policy Officer BB&T Corporation H. Lynn Harton President, Chief Operating Officer W.C. Nelson, Jr. Co-Owner and Operator Nelson Tractor Co. 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 Jefferson L. Harralson Executive Vice President, Chief Financial Officer Bill M. Gilbert President of 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 of Commercial Banking Solutions U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T | 11 1 2 | U N I T E D C O M M U N I T Y B A N K S , I N C . 2017 A N N UA L R E P O R T ucbi.com 

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