United Community Banks, Inc. Announces Fourth Quarter

Loss per diluted share of 16 cents reflects impact of remeasurement of
deferred tax asset following historic tax reform legislation
Excluding the remeasurement charge and other non-operating charges,
Operating earnings per share up five percent, to 42 cents

Net interest revenue of $97.5 million, up $16.6 million or 20 percent from year ago
Net interest margin of 3.63 percent, up nine basis points from third quarter and up 29 basis points from year ago
Efficiency ratio of 63 percent, or 56.9 percent excluding merger-related and other charges
Completed the acquisition of Four Oaks Bank & Trust Company during the quarter

BLAIRSVILLE, Ga., Jan. 23, 2018 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) today announced its fourth quarter financial results. Although remeasurement of United’s deferred tax assets following December’s historic tax reform legislation led to a net loss for the quarter of $11.9 million or 16 cents per diluted share, strong margin expansion, disciplined expense controls and solid credit quality drove strong pre-tax results.

On an operating basis, United reported net income of $32.5 million for the fourth quarter of 2017 compared with $28.9 million for the fourth quarter of 2016. Fourth quarter 2017 operating net income excludes the $38.2 million impact of remeasuring United’s deferred tax assets, as well as merger-related and other non-operating charges totaling $6.19 million, net of the associated income tax benefit. Fourth quarter 2016 operating net income excludes $709,000 in merger-related charges, net of the associated income tax benefit and a $976,000 tax charge for the impairment of our deferred tax asset on cancelled non-qualified stock options. On a per diluted share basis, operating net income was 42 cents for the fourth quarter of 2017 compared with 40 cents for the fourth quarter of 2016.

At December 31, 2017, preliminary regulatory capital ratios were as follows: Tier 1 Risk-Based of 12.3 percent; Total Risk-Based of 13.0 percent; Common Equity Tier 1 Risk-Based of 12.0 percent, and Tier 1 Leverage of 9.4 percent.

“We achieved solid pre-tax financial results for the fourth quarter, marking a strong end to another exceptional year of achievement for United Community Banks,” said Jimmy Tallent, chairman and chief executive officer. “Looking back over the year, I am encouraged by all that we achieved. In 2017, we continued our strategic expansion by merging with two outstanding community banks that both extend and enhance our footprint in thriving new markets. We completed the acquisition of Horry County State Bank on July 31, significantly enhancing our presence in the Myrtle Beach area along the South Carolina coast. We completed the acquisition of Four Oaks Bank & Trust Company on November 1, extending our footprint in and around the Raleigh, North Carolina metropolitan statistical area. All systems conversions for the Horry County State Bank acquisition were completed in the fourth quarter and we are scheduled to convert Four Oaks to United’s systems in early 2018, at which time we expect to fully realize the anticipated cost savings. Both of these banks share our customer service culture and are exceptional partners for extending our footprint. I could not be more pleased with these partnerships and I am thrilled to welcome them to the United family."

Tallent continued, “A few weeks ago we announced a merger with NLFC Holdings Corp. and its wholly-owned subsidiary, Navitas Credit Corp. Navitas Credit Corp. is a premier specialty lender providing equipment finance services to small and medium-sized businesses nationwide with headquarters in Ponte Vedra, Florida. This fast-growing company will be a solid strategic addition to our existing specialty and commercial lending businesses and will enable us to further expand our client offerings. Navitas will continue to be run by their talented team of industry veterans. This partnership brings exceptional growth and a significant profitability enhancement to United and a permanent source of capital and low-cost funding to Navitas. The partnership with Navitas is a solid win for both of us and I am excited to welcome them to United Community Bank.

“While the passage of tax reform legislation in late December will have a substantial and ongoing positive impact on United’s earnings beginning in the first quarter of 2018, the required remeasurement of United’s deferred tax assets resulted in a $38.2 million non-cash charge to tax expense in the fourth quarter,” stated Tallent. “The charge results because our net deferred tax assets will now be recovered at the lower federal income tax rate of 21 percent rather than the previous rate of 35 percent. Despite the charge, we believe tax reform legislation will be good for United, our industry, our customers and our shareholders not only because it reduces our tax burden going forward but we also expect it to stimulate the economy and drive growth.

“Fourth quarter loan production was $644 million with $440 million originating from our community banks and $204 million from our Commercial Banking Solutions group,” Tallent added. “Linked-quarter loans were up $533 million, mostly reflecting the $486 million in net loans received through our acquisition of Four Oaks. Our indirect auto loan portfolio was down $42.1 million from third quarter reflecting our decision to suspend indirect auto loan purchases. Excluding the reduction in indirect auto loans and the loans acquired through the Four Oaks acquisition, loan growth was up at an annualized rate of approximately five percent from the third quarter.”

Fourth quarter net interest revenue totaled $97.5 million, up $16.6 million from the fourth quarter of 2016 and up $7.7 million from the third quarter. The increases from both periods reflect business growth and net interest margin expansions of 29 basis points from a year ago and nine basis points from the third quarter. The increases were mostly driven by rising short-term interest rates, the repayment of senior notes in August and October, as well as the acquisitions of Four Oaks Bank & Trust Company on November 1, 2017 and Horry County State Bank on July 31, 2017. Four Oaks Bank & Trust Company and Horry County State Bank results are included in United’s financial results beginning on their respective acquisition date.

The fourth quarter provision for credit losses was $1.2 million, up from $1.0 million for the third quarter and no provision in fourth quarter 2016. Fourth quarter net charge-offs totaled $1.1 million, down from $1.6 million in the third quarter of 2017 and $1.5 million in the fourth quarter of 2016. Contributing to the low level of net charge-offs were continued strong recoveries of previously charged-off loans. Nonperforming assets were .23 percent of total assets at December 31, 2017, compared with .28 percent at December 31, 2016 and .23 percent at September 30, 2017.

“Credit quality remains strong and steady as indicated by the low level of net charge-offs,” Tallent commented. “Our credit quality indicators show no indication of credit deterioration and our outlook is for that to continue. We also expect our provision levels to gradually increase each quarter due to loan growth, while our allowance and the related ratio to total loans may decline slightly.”

Fourth quarter fee revenue totaled $21.9 million, down $3.31 million from a year ago but up $1.36 million from the third quarter. The decrease from a year ago was mostly due to lower debit card interchange fees as a result of the Durbin amendment becoming effective for United on July 1, 2017. The application of the Durbin amendment reduced United’s debit card interchange fees by approximately $2.7 million in both the third and fourth quarters. Also contributing to the decrease from both prior periods were lower mortgage fees and lower customer derivative fees reflecting a less favorable interest rate environment.

Operating expenses were $75.9 million for the fourth quarter, compared with $61.3 million for the fourth quarter of 2016 and $65.7 million for the third quarter. Included in the fourth quarter’s operating expenses are $7.36 million in merger-related expenses. We also had merger-related charges of $1.14 million in the fourth quarter of 2016, and $2.3 million in merger-related expenses and $1.1 million in surplus property impairment charges, totaling $3.4 million in the third quarter of 2017. Excluding these charges, fourth quarter operating expenses were $68.5 million compared with $62.3 million for the third quarter and $60.2 million a year ago. More than half of the $6.3 million increase from the third quarter was due to the operating expenses of Four Oaks Bank & Trust Company acquired on November 1, 2017 and Horry County State Bank acquired on July 31, 2017. Higher incentives for exceeding performance targets contributed to the increase from third quarter and accounted for approximately half of the linked quarter increase in salaries and benefits with the rest of the increase in salaries and benefits coming from the acquisitions.

Tallent concluded, “2017 was another exceptional year for United Community Banks. We completed two outstanding acquisitions that extend our footprint in thriving markets with bankers who share our culture of customer service. Our bankers produced solid financial results allowing us to absorb the loss of revenue resulting from the application of the Durbin amendment and the higher deposit insurance assessment and still produce growth in earnings per share. That alone was a tremendous accomplishment. Every day our bankers demonstrate their passion and commitment which drive our performance and ensure our success. With an outstanding 2017 now behind us, I look forward with eager anticipation to all our bankers will accomplish in 2018.”

Conference Call
United will hold a conference call Wednesday, January 24, 2018, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 9796627. 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 $11.9 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 156 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For the last four years, J.D. Power has 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 press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted share,” “operating earnings per diluted share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “operating dividend payout ratio,” “operating efficiency ratio,” “average tangible equity to average assets,” “average tangible common equity to average assets” and “tangible common equity to risk-weighted assets.” These non-GAAP measures are included because 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.

Caution About Forward-Looking Statements
Certain Statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or words of similar meaning or other statements concerning opinions or judgments of United and its management about future events. Although United believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of United will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements; such statements are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Actual future results and trends may differ materially from historical results and or those anticipated depending on a variety of factors, including, but not limited to the factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in United’s Form 10-K for the year ended December 31, 2016 and other periodic reports subsequently filed by United with the SEC, available on the SEC website, www.sec.gov. For any forward-looking statements made in this press release, United claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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


UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

																					Fourth
		2017																2016			Quarter
	Fourth				Third				Second				First				Fourth				2017-2016
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter				Change
INCOME SUMMARY
Interest revenue	$	106,757			$	98,839			$	93,166			$	90,958			$	87,778
Interest expense		9,249				9,064				8,018				7,404				6,853
Net interest revenue		97,508				89,775				85,148				83,554				80,925			20		%
Provision for credit losses		1,200				1,000				800				800				-
Fee revenue		21,928				20,573				23,685				22,074				25,233			(13	)
Total revenue		118,236				109,348				108,033				104,828				106,158			11
Expenses		75,882				65,674				63,229				62,826				61,321			24
Income before income tax expense		42,354				43,674				44,804				42,002				44,837			(6	)
Income tax expense		54,270				15,728				16,537				18,478				17,616			208
Net income		(11,916	)			27,946				28,267				23,524				27,221			(144	)
Merger-related and other charges		7,358				3,420				1,830				2,054				1,141
Income tax benefit of merger-related and other charges		(1,165	)			(1,147	)			(675	)			(758	)			(432	)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act		38,199				-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				-				-				976
Release of disproportionate tax effects lodged in OCI		-				-				-				3,400				-
Net income - operating ⁽¹⁾	$	32,476			$	30,219			$	29,422			$	28,220			$	28,906			12

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	(.16	)		$	.38			$	.39			$	.33			$	.38			(142	)
Diluted net income - operating ⁽¹⁾	.42				.41				.41				.39				.40				5
Cash dividends declared	.10				.10				.09				.09				.08				25		%
Book value		16.67				16.50				15.83				15.40				15.06			11
Tangible book value⁽³⁾		13.65				14.11				13.74				13.30				12.95			5

Key performance ratios:
Return on common equity - GAAP⁽²⁾⁽⁴⁾		(3.57	)	%		9.22		%		9.98		%		8.54		%		9.89		%
Return on common equity - operating^(1)(2)(4)		9.73				9.97				10.39				10.25				10.51
Return on tangible common equity - operating^(1)(2)(3)(4)		11.93				11.93				12.19				12.10				12.47
Return on assets - GAAP⁽⁴⁾	(.40		)			1.01				1.06			.89					1.03
Return on assets - operating⁽¹⁾⁽⁴⁾		1.10				1.09				1.10				1.07				1.10
Dividend payout ratio - GAAP		(62.50	)			26.32				23.08				27.27				21.05
Dividend payout ratio - operating ⁽¹⁾		23.81				24.39				21.95				23.08				20.00
Net interest margin (fully taxable equivalent)⁽⁴⁾		3.63				3.54				3.47				3.45				3.34
Efficiency ratio - GAAP		63.03				59.27				57.89				59.29				57.65
Efficiency ratio - operating ⁽¹⁾		56.92				56.18				56.21				57.35				56.58
Average equity to average assets		11.21				10.86				10.49				10.24				10.35
Average tangible equity to average assets⁽³⁾		9.52				9.45				9.23				8.96				9.04
Average tangible common equity to average assets⁽³⁾		9.52				9.45				9.23				8.96				9.04
Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾		12.11				12.80				12.44				12.07				11.84

ASSET QUALITY
Nonperforming loans	$	23,658			$	22,921			$	23,095			$	19,812			$	21,539			10
Foreclosed properties		3,234				2,736				2,739				5,060				7,949			(59	)
Total nonperforming assets (NPAs)		26,892				25,657				25,834				24,872				29,488			(9	)
Allowance for loan losses		58,914				58,605				59,500				60,543				61,422			(4	)
Net charge-offs		1,061				1,635				1,623				1,679				1,539			(31	)
Allowance for loan losses to loans	.76			%	.81			%	.85			%	.87			%	.89			%
Net charge-offs to average loans⁽⁴⁾	.06				.09				.09				.10				.09
NPAs to loans and foreclosed properties	.35				.36				.37				.36				.43
NPAs to total assets	.23				.23				.24				.23				.28

AVERAGE BALANCES ($ in millions)
Loans	$	7,560			$	7,149			$	6,980			$	6,904			$	6,814			11
Investment securities		2,991				2,800				2,775				2,822				2,690			11
Earning assets		10,735				10,133				9,899				9,872				9,665			11
Total assets		11,687				10,980				10,704				10,677				10,484			11
Deposits		9,624				8,913				8,659				8,592				8,552			13
Shareholders’ equity		1,310				1,193				1,123				1,093				1,085			21
Common shares - basic (thousands)		76,768				73,151				71,810				71,700				71,641			7
Common shares - diluted (thousands)		76,768				73,162				71,820				71,708				71,648			7

AT PERIOD END ($ in millions)
Loans	$	7,736			$	7,203			$	7,041			$	6,965			$	6,921			12
Investment securities		2,937				2,847				2,787				2,767				2,762			6
Total assets		11,915				11,129				10,837				10,732				10,709			11
Deposits		9,808				9,127				8,736				8,752				8,638			14
Shareholders’ equity		1,303				1,221				1,133				1,102				1,076			21
Common shares outstanding (thousands)		77,580				73,403				70,981				70,973				70,899			9

⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, 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 less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). ⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization. ⁽⁴⁾ Annualized. ⁽⁵⁾ Fourth quarter 2017 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information

	For the Twelve
	Months Ended								YTD
	December 31,								2017-2016
(in thousands, except per share data)		2017				2016			Change
INCOME SUMMARY
Interest revenue	$	389,720			$	335,020
Interest expense		33,735				25,236
Net interest revenue		355,985				309,784			15		%
Provision for credit losses		3,800				(800	)
Fee revenue		88,260				93,697			(6	)
Total revenue		440,445				404,281			9
Expenses		267,611				241,289			11
Income before income tax expense		172,834				162,992			6
Income tax expense		105,013				62,336			68
Net income		67,821				100,656			(33	)
Merger-related and other charges		14,662				8,122
Income tax benefit of merger-related and other charges		(3,745	)			(3,074	)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act		38,199				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				976
Release of disproportionate tax effects lodged in OCI		3,400				-
Net income - operating ⁽¹⁾	$	120,337			$	106,680			13

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	.92			$	1.40			(34	)
Diluted net income - operating ⁽¹⁾		1.63				1.48			10
Cash dividends declared		.38				.30			27		%
Book value		16.67				15.06			11
Tangible book value⁽³⁾		13.65				12.95			5

Key performance ratios:
Return on common equity - GAAP⁽²⁾⁽⁴⁾		5.67		%		9.41		%
Return on common equity - operating^(1)(2)(4)		10.07				9.98
Return on tangible common equity - operating^(1)(2)(3)(4)		12.02				11.86
Return on assets - GAAP⁽⁴⁾		.62				1.00
Return on assets - operating⁽¹⁾⁽⁴⁾		1.09				1.06
Dividend payout ratio - GAAP		41.30				21.43
Dividend payout ratio - operating ⁽¹⁾		23.31				20.27
Net interest margin (fully taxable equivalent)⁽⁴⁾		3.52				3.36
Efficiency ratio - GAAP		59.95				59.80
Efficiency ratio - operating ⁽¹⁾		56.67				57.78
Average equity to average assets		10.71				10.54
Average tangible equity to average assets⁽³⁾		9.29				9.21
Average tangible common equity to average assets⁽³⁾		9.29				9.19
Tangible common equity to risk-weighted assets⁽³⁾⁽⁵⁾		12.11				11.84

ASSET QUALITY
Nonperforming loans	$	23,658			$	21,539			10
Foreclosed properties		3,234				7,949			(59	)
Total nonperforming assets (NPAs)		26,892				29,488			(9	)
Allowance for loan losses		58,914				61,422			(4	)
Net charge-offs		5,998				6,766			(11	)
Allowance for loan losses to loans		.76		%		.89		%
Net charge-offs to average loans⁽⁴⁾		.08				.11
NPAs to loans and foreclosed properties		.35				.43
NPAs to total assets		.23				.28

AVERAGE BALANCES ($ in millions)
Loans	$	7,150			$	6,413			11
Investment securities		2,847				2,691			6
Earning assets		10,162				9,257			10
Total assets		11,015				10,054			10
Deposits		8,950				8,177			9
Shareholders’ equity		1,180				1,059			11
Common shares - basic (thousands)		73,247				71,910			2
Common shares - diluted (thousands)		73,259				71,915			2

AT PERIOD END ($ in millions)
Loans	$	7,736			$	6,921			12
Investment securities		2,937				2,762			6
Total assets		11,915				10,709			11
Deposits		9,808				8,638			14
Shareholders’ equity		1,303				1,076			21
Common shares outstanding (thousands)		77,580				70,899			9

⁽¹⁾ Excludes merger-related and other charges which includes amortization of certain executive change of control benefits, the fourth quarter 2017 impact of remeasurement of United's deferred tax assets following the passage of tax reform legislation, 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 less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). ⁽³⁾ Excludes effect of acquisition related intangibles and associated amortization. ⁽⁴⁾ Annualized. ⁽⁵⁾ Fourth quarter 2017 ratio is preliminary.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
For the Years Ended December 31,

(in thousands, except per share data)		2017				2016				2015				2014			2013
INCOME SUMMARY
Interest revenue	$	389,720			$	335,020			$	278,532			$	248,432		$	245,840
Interest expense		33,735				25,236				21,109				25,551			27,682
Net interest revenue		355,985				309,784				257,423				222,881			218,158
Provision for credit losses		3,800				(800	)			3,700				8,500			65,500
Fee revenue		88,260				93,697				72,529				55,554			56,598
Total revenue		440,445				404,281				326,252				269,935			209,256
Expenses		267,611				241,289				211,238				162,865			174,304
Income before income tax expense		172,834				162,992				115,014				107,070			34,952
Income tax expense (benefit)		105,013				62,336				43,436				39,450			(238,188	)
Net income		67,821				100,656				71,578				67,620			273,140
Merger-related and other charges		14,662				8,122				17,995				-			-
Income tax benefit of merger-related and other charges		(3,745	)			(3,074	)			(6,388	)			-			-
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act		38,199				-				-				-			-
Impairment of deferred tax asset on cancelled non-qualified stock options		-				976				-				-			-
Release of disproportionate tax effects lodged in OCI		3,400				-				-				-			-
Net income - operating ⁽¹⁾	$	120,337			$	106,680			$	83,185			$	67,620		$	273,140

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	.92			$	1.40			$	1.09			$	1.11		$	4.44
Diluted net income - operating ⁽¹⁾		1.63				1.48				1.27				1.11			4.44
Cash dividends declared		.38				.30				.22				.11			-
Book value		16.67				15.06				14.02				12.20			11.30
Tangible book value⁽³⁾		13.65				12.95				12.06				12.15			11.26

Key performance ratios:
Return on common equity - GAAP⁽²⁾		5.67		%		9.41		%		8.15		%		9.17	%		46.72		%
Return on common equity - operating⁽¹⁾⁽²⁾		10.07				9.98				9.48				9.17			46.72
Return on tangible common equity - operating^(1)(2)(3)		12.02				11.86				10.24				9.32			47.35
Return on assets - GAAP		.62				1.00				.85				.91			3.86
Return on assets - operating⁽¹⁾		1.09				1.06				.98				.91			3.86
Dividend payout ratio - GAAP		41.30				21.43				20.18				9.91			-
Dividend payout ratio - operating ⁽¹⁾		23.31				20.27				17.32				9.91			-
Net interest margin (fully taxable equivalent)		3.52				3.36				3.30				3.26			3.30
Efficiency ratio - GAAP		59.95				59.80				63.96				58.26			63.14
Efficiency ratio - operating ⁽¹⁾		56.67				57.78				58.51				58.26			63.14
Average equity to average assets		10.71				10.54				10.27				9.69			10.35
Average tangible equity to average assets⁽³⁾		9.29				9.21				9.74				9.67			10.31
Average tangible common equity to average assets⁽³⁾		9.29				9.19				9.66				9.60			7.55
Tangible common equity to risk-weighted assets⁽³⁾⁽⁴⁾		12.11				11.84				12.82				13.82			13.17

ASSET QUALITY
Nonperforming loans	$	23,658			$	21,539			$	22,653			$	17,881		$	26,819
Foreclosed properties		3,234				7,949				4,883				1,726			4,221
Total nonperforming assets (NPAs)		26,892				29,488				27,536				19,607			31,040
Allowance for loan losses		58,914				61,422				68,448				71,619			76,762
Net charge-offs		5,998				6,766				6,259				13,879			93,710
Allowance for loan losses to loans		.76		%		.89		%		1.14		%		1.53	%		1.77		%
Net charge-offs to average loans		.08				.11				.12				.31			2.22
NPAs to loans and foreclosed properties		.35				.43				.46				.42			.72
NPAs to total assets		.23				.28				.29				.26			.42

AVERAGE BALANCES ($ in millions)
Loans	$	7,150			$	6,413			$	5,298			$	4,450		$	4,254
Investment securities		2,847				2,691				2,368				2,274			2,190
Earning assets		10,162				9,257				7,834				6,880			6,649
Total assets		11,015				10,054				8,462				7,436			7,074
Deposits		8,950				8,177				7,055				6,228			6,027
Shareholders’ equity		1,180				1,059				869				720			732
Common shares - basic (thousands)		73,247				71,910				65,488				60,588			58,787
Common shares - diluted (thousands)		73,259				71,915				65,492				60,590			58,845

AT PERIOD END ($ in millions)
Loans	$	7,736			$	6,921			$	5,995			$	4,672		$	4,329
Investment securities		2,937				2,762				2,656				2,198			2,312
Total assets		11,915				10,709				9,616				7,558			7,424
Deposits		9,808				8,638				7,873				6,335			6,202
Shareholders’ equity		1,303				1,076				1,018				740			796
Common shares outstanding (thousands)		77,580				70,899				71,484				60,259			59,432

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

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information


		2017																2016
	Fourth				Third				Second				First				Fourth
(in thousands, except per share data)	Quarter				Quarter				Quarter				Quarter				Quarter

Expense reconciliation
Expenses (GAAP)	$	75,882			$	65,674			$	63,229			$	62,826			$	61,321
Merger-related and other charges		(7,358	)			(3,420	)			(1,830	)			(2,054	)			(1,141	)
Expenses - operating	$	68,524			$	62,254			$	61,399			$	60,772			$	60,180

Net income reconciliation
Net income (GAAP)	$	(11,916	)		$	27,946			$	28,267			$	23,524			$	27,221
Merger-related and other charges		7,358				3,420				1,830				2,054				1,141
Income tax benefit of merger-related and other charges		(1,165	)			(1,147	)			(675	)			(758	)			(432	)
Impact of tax reform on remeasurement of deferred tax asset		38,199				-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				-				-				-				976
Release of disproportionate tax effects lodged in OCI		-				-				-				3,400				-
Net income - operating	$	32,476			$	30,219			$	29,422			$	28,220			$	28,906

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	(.16	)		$	.38			$	.39			$	.33			$	.38
Merger-related and other charges		.08				.03				.02				.01				.01
Impact of tax reform on remeasurement of deferred tax asset		.50				-				-				-				-
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	$	.42			$	.41			$	.41			$	.39			$	.40

Book value per common share reconciliation
Book value per common share (GAAP)	$	16.67			$	16.50			$	15.83			$	15.40			$	15.06
Effect of goodwill and other intangibles		(3.02	)			(2.39	)			(2.09	)			(2.10	)			(2.11	)
Tangible book value per common share	$	13.65			$	14.11			$	13.74			$	13.30			$	12.95

Return on tangible common equity reconciliation
Return on common equity (GAAP)		(3.57	)	%		9.22		%		9.98		%		8.54		%		9.89		%
Merger-related and other charges		1.86				.75				.41				.47				.26
Impact of tax reform on remeasurement of deferred tax asset		11.44				-				-				-				-
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		9.73				9.97				10.39				10.25				10.51
Effect of goodwill and other intangibles		2.20				1.96				1.80				1.85				1.96
Return on tangible common equity - operating		11.93		%		11.93		%		12.19		%		12.10		%		12.47		%

Return on assets reconciliation
Return on assets (GAAP)		(.40	)	%		1.01		%		1.06		%		.89		%		1.03		%
Merger-related and other charges		.20				.08				.04				.05				.03
Impact of tax reform on remeasurement of deferred tax asset		1.30				-				-				-				-
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		%		1.09		%		1.10		%		1.07		%		1.10		%

Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		(62.50	)	%		26.32		%		23.08		%		27.27		%		21.05		%
Merger-related and other charges		12.04				(1.93	)			(1.13	)			(.98	)			(.54	)
Impact of tax reform on remeasurement of deferred tax asset		74.27				-				-				-				-
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		23.81		%		24.39		%		21.95		%		23.08		%		20.00		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		63.03		%		59.27		%		57.89		%		59.29		%		57.65		%
Merger-related and other charges		(6.11	)			(3.09	)			(1.68	)			(1.94	)			(1.07	)
Efficiency ratio - operating		56.92		%		56.18		%		56.21		%		57.35		%		56.58		%

Average equity to assets reconciliation
Equity to assets (GAAP)		11.21		%		10.86		%		10.49		%		10.24		%		10.35		%
Effect of goodwill and other intangibles		(1.69	)			(1.41	)			(1.26	)			(1.28	)			(1.31	)
Tangible equity to assets		9.52				9.45				9.23				8.96				9.04
Effect of preferred equity		-				-				-				-				-
Tangible common equity to assets		9.52		%		9.45		%		9.23		%		8.96		%		9.04		%

Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾
Tier 1 capital ratio (Regulatory)		12.27		%		12.27		%		11.91		%		11.46		%		11.23		%
Effect of other comprehensive income		(.27	)			(.13	)			(.15	)			(.24	)			(.34	)
Effect of deferred tax limitation		.51				.94				.95				1.13				1.26
Effect of trust preferred		(.36	)			(.24	)			(.25	)			(.25	)			(.25	)
Effect of preferred equity		-				-				-				-				-
Basel III intangibles transition adjustment		(.04	)			(.04	)			(.02	)			(.03	)			(.06	)
Basel III disallowed investments		-				-				-				-				-
Tangible common equity to risk-weighted assets		12.11		%		12.80		%		12.44		%		12.07		%		11.84		%

⁽¹⁾ Fourth quarter 2017 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information


	For the Twelve Months Ended December 31,
	For the Twelve Months Ended December 31,
(in thousands, except per share data)		2017				2016				2015				2014				2013

Expense reconciliation
Expenses (GAAP)	$	267,611			$	241,289			$	211,238			$	162,865			$	174,304
Merger-related and other charges		(14,662	)			(8,122	)			(17,995	)			-				-
Expenses - operating	$	252,949			$	233,167			$	193,243			$	162,865			$	174,304

Net income reconciliation
Net income (GAAP)	$	67,821			$	100,656			$	71,578			$	67,620			$	273,140
Merger-related and other charges		14,662				8,122				17,995				-				-
Income tax benefit of merger-related and other charges		(3,745	)			(3,074	)			(6,388	)			-				-
Impact of tax reform on remeasurement of deferred tax asset		38,199				-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				976				-				-				-
Release of disproportionate tax effects lodged in OCI		3,400				-				-				-				-
Net income - operating	$	120,337			$	106,680			$	83,185			$	67,620			$	273,140

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	.92			$	1.40			$	1.09			$	1.11			$	4.44
Merger-related and other charges		.14				.07				.18				-				-
Impact of tax reform on remeasurement of deferred tax asset		.52				-				-				-				-
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	$	1.63			$	1.48			$	1.27			$	1.11			$	4.44

Book value per common share reconciliation
Book value per common share (GAAP)	$	16.67			$	15.06			$	14.02			$	12.20			$	11.30
Effect of goodwill and other intangibles		(3.02	)			(2.11	)			(1.96	)			(.05	)			(.04	)
Tangible book value per common share	$	13.65			$	12.95			$	12.06			$	12.15			$	11.26

Return on tangible common equity reconciliation
Return on common equity (GAAP)		5.67		%		9.41		%		8.15		%		9.17		%		46.72		%
Merger-related and other charges		.92				.48				1.33				-				-
Impact of tax reform on remeasurement of deferred tax asset		3.20				-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				.09				-				-				-
Release of disproportionate tax effects lodged in OCI		.28				-				-				-				-
Return on common equity - operating		10.07				9.98				9.48				9.17				46.72
Effect of goodwill and other intangibles		1.95				1.88				.76				.15				.63
Return on tangible common equity - operating		12.02		%		11.86		%		10.24		%		9.32		%		47.35		%

Return on assets reconciliation
Return on assets (GAAP)		.62		%		1.00		%		.85		%		.91		%		3.86		%
Merger-related and other charges		.09				.05				.13				-				-
Impact of tax reform on remeasurement of deferred tax asset		.35				-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				.01				-				-				-
Release of disproportionate tax effects lodged in OCI		.03				-				-				-				-
Return on assets - operating		1.09		%		1.06		%		.98		%		.91		%		3.86		%

Dividend payout ratio reconciliation
Dividend payout ratio (GAAP)		41.30		%		21.43		%		20.18		%		9.91		%		-		%
Merger-related and other charges		(5.65	)			(1.02	)			(2.86	)			-				-
Impact of tax reform on remeasurement of deferred tax asset		(11.61	)			-				-				-				-
Impairment of deferred tax asset on canceled non-qualified stock options		-				(.14	)			-				-				-
Release of disproportionate tax effects lodged in OCI		(.73	)			-				-				-				-
Dividend payout ratio - operating		23.31		%		20.27		%		17.32		%		9.91		%		-		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		59.95		%		59.80		%		63.96		%		58.26		%		63.14		%
Merger-related and other charges		(3.28	)			(2.02	)			(5.45	)			-				-
Efficiency ratio - operating		56.67		%		57.78		%		58.51		%		58.26		%		63.14		%

Average equity to assets reconciliation
Equity to assets (GAAP)		10.71		%		10.54		%		10.27		%		9.69		%		10.35		%
Effect of goodwill and other intangibles		(1.42	)			(1.33	)			(.53	)			(.02	)			(.04	)
Tangible equity to assets		9.29				9.21				9.74				9.67				10.31
Effect of preferred equity		-				(.02	)			(.08	)			(.07	)			(2.76	)
Tangible common equity to assets		9.29		%		9.19		%		9.66		%		9.60		%		7.55		%

Tangible common equity to risk-weighted assets reconciliation ⁽¹⁾
Tier 1 capital ratio (Regulatory)		12.27		%		11.23		%		11.45		%		12.06		%		12.74		%
Effect of other comprehensive income		(.27	)			(.34	)			(.38	)			(.35	)			(.39	)
Effect of deferred tax limitation		.51	)			1.26				2.05				3.11				4.26
Effect of trust preferred		(.36				(.25	)			(.08	)			(1.00	)			(1.04	)
Effect of preferred equity		-								(.15	)			-				(2.39	)
Basel III intangibles transition adjustment		(.04	)			(.06	)			(.10	)			-				-
Basel III disallowed investments		-				-				.03				-				-
Tangible common equity to risk-weighted assets		12.11		%		11.84		%		12.82		%		13.82		%		13.18		%

⁽¹⁾ Fourth quarter 2017 ratios are preliminary.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End


	2017								2016
	Fourth		Third		Second		First		Fourth
(in millions)	Quarter		Quarter		Quarter		Quarter		Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,924	$	1,792	$	1,723	$	1,633	$	1,650
Income producing commercial RE		1,595		1,413		1,342		1,297		1,282
Commercial & industrial		1,131		1,084		1,088		1,080		1,070
Commercial construction		712		583		587		667		634
Total commercial		5,362		4,872		4,740		4,677		4,636
Residential mortgage		974		933		881		860		857
Home equity lines of credit		731		689		665		659		655
Residential construction		183		190		193		197		190
Consumer installment		486		519		562		572		583
Total loans	$	7,736	$	7,203	$	7,041	$	6,965	$	6,921

LOANS BY MARKET
North Georgia	$	1,019	$	1,047	$	1,065	$	1,076	$	1,097
Atlanta MSA		1,510		1,477		1,445		1,408		1,399
North Carolina		1,049		542		541		541		545
Coastal Georgia		630		634		623		591		581
Gainesville MSA		248		242		246		252		248
East Tennessee		475		471		486		483		504
South Carolina		1,486		1,470		1,260		1,243		1,233
Commercial Banking Solutions		961		920		926		911		855
Indirect auto		358		400		449		460		459
Total loans	$	7,736	$	7,203	$	7,041	$	6,965	$	6,921

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End


	2017				2016		Linked Quarter Change			Year over Year Change
	Fourth		Third		Fourth
(in millions)	Quarter		Quarter		Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,924	$	1,792	$	1,650	$	132		$	274
Income producing commercial RE		1,595		1,413		1,282		182			313
Commercial & industrial		1,131		1,084		1,070		47			61
Commercial construction		712		583		634		129			78
Total commercial		5,362		4,872		4,636		490			726
Residential mortgage		974		933		857		41			117
Home equity lines of credit		731		689		655		42			76
Residential construction		183		190		190		(7	)		(7	)
Consumer installment		486		519		583		(33	)		(97	)
Total loans	$	7,736	$	7,203	$	6,921		533			815

LOANS BY MARKET
North Georgia	$	1,019	$	1,047	$	1,097		(28	)		(78	)
Atlanta MSA		1,510		1,477		1,399		33			111
North Carolina		1,049		542		545		507			504
Coastal Georgia		630		634		581		(4	)		49
Gainesville MSA		248		242		248		6			-
East Tennessee		475		471		504		4			(29	)
South Carolina		1,486		1,470		1,233		16			253
Commercial Banking Solutions		961		920		855		41			106
Indirect auto		358		400		459		(42	)		(101	)
Total loans	$	7,736	$	7,203	$	6,921		533			815

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End


(in millions)		2017		2016		2015		2014		2013
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,924	$	1,650	$	1,571	$	1,257	$	1,238
Income producing commercial RE		1,595		1,282		1,021		767		807
Commercial & industrial		1,131		1,070		785		710		471
Commercial construction		712		634		518		364		336
Total commercial		5,362		4,636		3,895		3,098		2,852
Residential mortgage		974		857		764		614		604
Home equity lines of credit		731		655		589		456		430
Residential construction		183		190		176		131		136
Consumer installment		486		583		571		373		307
Total loans	$	7,736	$	6,921	$	5,995	$	4,672	$	4,329


LOANS BY MARKET
North Georgia	$	1,019	$	1,097	$	1,125	$	1,163	$	1,240
Atlanta MSA		1,510		1,399		1,259		1,243		1,235
North Carolina		1,049		545		549		553		572
Coastal Georgia		630		581		537		456		423
Gainesville MSA		248		248		254		257		255
East Tennessee		475		504		504		280		280
South Carolina		1,486		1,233		819		30		4
Commercial Banking Solutions		961		855		492		421		124
Indirect auto		358		459		456		269		196
Total loans	$	7,736	$	6,921	$	5,995	$	4,672	$	4,329

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Fourth Quarter 2017
	Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	4,923		$	1,955		$	6,878
Income producing CRE		3,208			244			3,452
Commercial & industrial		2,097			-			2,097
Commercial construction		758			884			1,642
Total commercial		10,986			3,083			14,069
Residential mortgage		8,776			136			8,912
Home equity lines of credit		2,024			15			2,039
Residential construction		192			-			192
Consumer installment		1,680			-			1,680
Total NPAs	$	23,658		$	3,234		$	26,892

NONPERFORMING ASSETS BY MARKET
North Georgia	$	7,310		$	94		$	7,404
Atlanta MSA		1,395			279			1,674
North Carolina		4,543			1,213			5,756
Coastal Georgia		2,044			20			2,064
Gainesville MSA		739			-			739
East Tennessee		1,462			-			1,462
South Carolina		3,433			1,059			4,492
Commercial Banking Solutions		1,095			569			1,664
Indirect auto		1,637			-			1,637
Total NPAs	$	23,658		$	3,234		$	26,892

NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	22,921		$	2,736		$	25,657
Acquisitions					659			659
Loans placed on non-accrual		9,375			-			9,375
Payments received		(5,495	)		-			(5,495	)
Loan charge-offs		(1,747	)		-			(1,747	)
Foreclosures		(1,396	)		2,421			1,025
Property sales		-			(2,458	)		(2,458	)
Write downs		-			(117	)		(117	)
Net gains (losses) on sales		-			(7	)		(7	)
Ending Balance	$	23,658		$	3,234		$	26,892

⁽¹⁾ Annualized.


UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Third Quarter 2017
	Nonperforming			Foreclosed			Total
(in thousands)	Loans			Properties			NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE	$	5,027		$	764		$	5,791
Income producing CRE		2,042			121			2,163
Commercial & industrial		2,378			-			2,378
Commercial construction		1,376			923			2,299
Total commercial		10,823			1,808			12,631
Residential mortgage		8,559			392			8,951
Home equity lines of credit		1,898			195			2,093
Residential construction		178			341			519
Consumer installment		1,463			-			1,463
Total NPAs	$	22,921		$	2,736		$	25,657

NONPERFORMING ASSETS BY MARKET
North Georgia	$	6,707		$	404		$	7,111
Atlanta MSA		1,098			338			1,436
North Carolina		4,376			318			4,694
Coastal Georgia		2,532			-			2,532
Gainesville MSA		763			-			763
East Tennessee		1,734			67			1,801
South Carolina		1,903			1,609			3,512
Commercial Banking Solutions		2,429			-			2,429
Indirect auto		1,379			-			1,379
Total NPAs	$	22,921		$	2,736		$	25,657

NONPERFORMING ASSETS ACTIVITY
Beginning Balance	$	23,095		$	2,739		$	25,834
Acquisitions		20			805			825
Loans placed on non-accrual		7,964			-			7,964
Payments received		(5,192	)		-			(5,192	)
Loan charge-offs		(2,159	)		-			(2,159	)
Foreclosures		(807	)		683			(124	)
Property sales		-			(1,295	)		(1,295	)
Write downs		-			(236	)		(236	)
Net gains (losses) on sales		-			40			40
Ending Balance	$	22,921		$	2,736		$	25,657

⁽¹⁾ Annualized.


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
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

⁽¹⁾ Annualized.


UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality


	Fourth Quarter 2017					Third Quarter 2017					Second Quarter 2017
				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	$	(357	)	(.08)	%	$	(44	)	(.01)	%	$	37		.01	%
Income producing CRE		595		.16			1,159		.33			184		.06
Commercial & industrial		(242	)	(.09)			(200	)	(.08)			354		.13
Commercial construction		148		.09			(114	)	(.07)			341		.22
Total commercial		144		.01			801		.07			916		.08
Residential mortgage		290		.12			313		.14			26		.01
Home equity lines of credit		137		.08			56		.03			253		.15
Residential construction		(23	)	(.05)			36		.07			(53	)	(.11)
Consumer installment		513		.40			429		.31			481		.34
Total	$	1,061		.06		$	1,635		.09		$	1,623		.09

NET CHARGE-OFFS BY MARKET
North Georgia	$	64		.02	%	$	516		.19	%	$	681		.26	%
Atlanta MSA		26		.01			150		.04			(10	)	-
North Carolina		127		.06			221		.16			131		.10
Coastal Georgia		174		.11			(39	)	(.02)			120		.08
Gainesville MSA		154		.25			(50	)	(.08)			(54	)	(.09)
East Tennessee		61		.05			55		.05			27		.02
South Carolina		95		.03			528		.15			526		.17
Commercial Banking Solutions		75		.03			(7	)	-			(17	)	(.01)
Indirect auto		285		.30			261		.24			219		.19
Total	$	1,061		.06		$	1,635		.09		$	1,623		.09

⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Income (Unaudited)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
(in thousands, except per share data)		2017			2016		2017		2016

Interest revenue:
Loans, including fees	$	87,234		$	71,494	$	315,050	$	268,382
Investment securities, including tax exempt of $909, $165, $2,216, and $614		19,023			15,988		72,388		64,027
Deposits in banks and short-term investments		500			296		2,282		2,611
Total interest revenue		106,757			87,778		389,720		335,020

Interest expense:
Deposits:
NOW		1,433			522		3,365		1,903
Money market		2,095			1,321		7,033		4,982
Savings		46			33		135		135
Time		2,272			1,084		6,529		3,136
Total deposit interest expense		5,846			2,960		17,062		10,156
Short-term borrowings		175			121		352		399
Federal Home Loan Bank advances		1,492			945		6,095		3,676
Long-term debt		1,736			2,827		10,226		11,005
Total interest expense		9,249			6,853		33,735		25,236
Net interest revenue		97,508			80,925		355,985		309,784
(Release of) provision for credit losses		1,200			-		3,800		(800	)
Net interest revenue after provision for credit losses		96,308			80,925		352,185		310,584

Fee revenue:
Service charges and fees		8,770			10,653		38,295		42,113
Mortgage loan and other related fees		4,885			6,516		18,320		20,292
Brokerage fees		1,068			911		4,633		4,280
Gains from sales of SBA/USDA loans		3,102			3,028		10,493		9,545
Securities gains (losses), net		(148	)		60		42		982
Other		4,251			4,065		16,477		16,485
Total fee revenue		21,928			25,233		88,260		93,697
Total revenue		118,236			106,158		440,445		404,281

Operating expenses:
Salaries and employee benefits		41,042			35,677		153,098		138,789
Communications and equipment		5,217			4,753		19,660		18,355
Occupancy		5,542			5,210		20,344		19,603
Advertising and public relations		895			1,151		4,242		4,426
Postage, printing and supplies		1,825			1,353		5,952		5,382
Professional fees		3,683			2,773		12,074		11,822
FDIC assessments and other regulatory charges		1,776			1,413		6,534		5,866
Amortization of intangibles		1,760			1,066		4,845		4,182
Merger-related and other charges		6,841			1,141		13,901		8,122
Other		7,301			6,784		26,961		24,742
Total operating expenses		75,882			61,321		267,611		241,289
Net income before income taxes		42,354			44,837		172,834		162,992
Income tax expense		54,270			17,616		105,013		62,336
Net (loss) income	$	(11,916	)	$	27,221	$	67,821	$	100,656

Net (loss) income available to common shareholders	$	(11,986	)	$	27,221	$	67,250	$	100,635

(Loss) earnings per common share:
Basic	$	(.16	)	$	.38	$	.92	$	1.40
Diluted		(.16	)		.38		.92		1.40
Weighted average common shares outstanding:
Basic		76,768			71,641		73,247		71,910
Diluted		76,768			71,648		73,259		71,915

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)

	December 31,			December 31,
(in thousands, except share and per share data)		2017			2016

ASSETS
Cash and due from banks	$	129,108		$	99,489
Interest-bearing deposits in banks		185,167			117,859
Cash and cash equivalents		314,275			217,348
Securities available for sale		2,615,850			2,432,438
Securities held to maturity (fair value $321,276 and $333,170)		321,094			329,843
Loans held for sale (includes $26,252 and $27,891 at fair value)		32,734			29,878
Loans, net of unearned income		7,735,572			6,920,636
Less allowance for loan losses		(58,914	)		(61,422	)
Loans, net		7,676,658			6,859,214
Premises and equipment, net		208,852			189,938
Bank owned life insurance		188,970			143,543
Accrued interest receivable		32,459			28,018
Net deferred tax asset		88,049			154,336
Derivative financial instruments		22,721			23,688
Goodwill and other intangible assets		244,397			156,222
Other assets		169,401			144,189
Total assets	$	11,915,460		$	10,708,655
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	3,087,797		$	2,637,004
NOW		2,131,939			1,989,763
Money market		2,016,748			1,846,440
Savings		651,742			549,713
Time		1,548,460			1,287,142
Brokered		371,011			327,496
Total deposits		9,807,697			8,637,558
Short-term borrowings		50,000			5,000
Federal Home Loan Bank advances		504,651			709,209
Long-term debt		120,545			175,078
Derivative financial instruments		25,376			27,648
Accrued expenses and other liabilities		103,857			78,427
Total liabilities		10,612,126			9,632,920
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized;
77,579,561 and 70,899,114 shares issued and outstanding		77,580			70,899
Common stock issuable; 607,869 and 519,874 shares		9,083			7,327
Capital surplus		1,451,814			1,275,849
Accumulated deficit		(211,929	)		(251,857	)
Accumulated other comprehensive loss		(23,214	)		(26,483	)
Total shareholders' equity		1,303,334			1,075,735
Total liabilities and shareholders' equity	$	11,915,460		$	10,708,655

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,

	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⁾	$	7,560,451			$	87,285	4.58	%	$	6,814,114			$	71,522	4.18	%
Taxable securities ⁽³⁾		2,853,671				18,114	2.54			2,664,395				15,823	2.38
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾		137,080				1,488	4.34			25,735				270	4.20
Federal funds sold and other interest-earning assets		184,287				676	1.47			160,391				430	1.07

Total interest-earning assets (FTE)		10,735,489				107,563	3.98			9,664,635				88,045	3.63
Non-interest-earning assets:
Allowance for loan losses		(59,508	)							(62,767	)
Cash and due from banks		120,478								101,006
Premises and equipment		209,042								189,719
Other assets ⁽³⁾		681,308								591,491
Total assets	$	11,686,809							$	10,484,084

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	2,078,239				1,433	.27		$	1,920,124				522	.11
Money market		2,243,279				2,095	.37			2,058,589				1,321	.26
Savings		636,057				46	.03			544,490				33	.02
Time		1,476,362				1,918	.52			1,317,794				813	.25
Brokered time deposits		115,235				354	1.22			103,577				271	1.04
Total interest-bearing deposits		6,549,172		-		5,846	.35			5,944,574		-		2,960	.20

Federal funds purchased and other borrowings		39,704				175	1.75			51,224				121	.94
Federal Home Loan Bank advances		458,028				1,492	1.29			476,698				945	.79
Long-term debt		120,885				1,736	5.70			175,018				2,827	6.43
Total borrowed funds		618,617				3,403	2.18			702,940				3,893	2.20

Total interest-bearing liabilities		7,167,789				9,249	.51			6,647,514				6,853	.41
Non-interest-bearing liabilities:
Non-interest-bearing deposits		3,074,898								2,607,878
Other liabilities		134,211								143,609
Total liabilities		10,376,898								9,399,001
Shareholders' equity		1,309,911								1,085,083
Total liabilities and shareholders' equity	$	11,686,809							$	10,484,084

Net interest revenue (FTE)					$	98,314							$	81,192
Net interest-rate spread (FTE)							3.47	%							3.22	%

Net interest margin (FTE) ⁽⁴⁾							3.63	%							3.34	%

⁽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 $3.32 million in 2017 and $18.6 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 Twelve Months Ended December 31,

	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⁾	$	7,150,211		$	315,138	4.41	%	$	6,412,740		$	268,478		4.19	%
Taxable securities ⁽³⁾		2,761,983			70,172	2.54			2,665,051			63,413		2.38
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾		85,415			3,627	4.25			26,244			1,005		3.83
Federal funds sold and other interest-earning assets		164,314			2,966	1.81			152,722			3,149		2.06

Total interest-earning assets (FTE)		10,161,923			391,903	3.86			9,256,757			336,045		3.63
Non-interest-earning assets:
Allowance for loan losses		(60,602	)						(65,294	)
Cash and due from banks		107,053							95,613
Premises and equipment		198,970							187,698
Other assets ⁽³⁾		607,174							579,051
Total assets	$	11,014,518						$	10,053,825

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW	$	1,950,827			3,365	.17		$	1,826,729			1,903		.10
Money market		2,136,336			7,033	.33			1,941,288			4,982		.26
Savings		591,831			135	.02			515,179			135		.03
Time		1,338,859			5,417	.40			1,289,876			3,138		.24
Brokered time deposits		108,891			1,112	1.02			171,420			(2	)	.00
Total interest-bearing deposits		6,126,744			17,062	.28			5,744,492			10,156		.18

Federal funds purchased and other borrowings		26,856			352	1.31			34,906			399		1.14
Federal Home Loan Bank advances		576,472			6,095	1.06			499,026			3,676		.74
Long-term debt		156,327			10,226	6.54			170,479			11,005		6.46
Total borrowed funds		759,655			16,673	2.19			704,411			15,080		2.14

Total interest-bearing liabilities		6,886,399			33,735	.49			6,448,903			25,236		.39
Non-interest-bearing liabilities:
Non-interest-bearing deposits		2,823,005							2,432,846
Other liabilities		124,832							112,774
Total liabilities		9,834,236							8,994,523
Shareholders' equity		1,180,282							1,059,302
Total liabilities and shareholders' equity	$	11,014,518						$	10,053,825

Net interest revenue (FTE)				$	358,168						$	310,809
Net interest-rate spread (FTE)						3.37	%							3.24	%

Net interest margin (FTE) ⁽⁴⁾						3.52	%							3.36	%

⁽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 $4.33 million in 2017 and $16.0 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. Announces Fourth Quarter Earnings

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