Strong Margin Expansion Drives Growth in Net Income

GREENVILLE, S.C., July 24, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the 2024 second quarter was $66.6 million and pre-tax, pre-provision income was $98.2 million. Diluted earnings per share of $0.54 for the quarter represented an increase of $0.01, or 2%, from the second quarter a year ago and an increase of $0.03, or 6%, from the first quarter of 2024.

On an operating basis, United’s diluted earnings per share of $0.58 was up 5% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and a lower provision for credit losses. The linked-quarter increase in earnings per share was primarily driven by higher net interest income. United’s return on assets was 0.97%, or 1.04% on an operating basis. Return on equity was 7.53% and return on tangible common equity was 11.68%. On a pre-tax, pre-provision basis, operating return on assets was 1.54% for the quarter. At quarter end, tangible common equity to tangible assets was 8.78%, up 29 basis points from the first quarter of 2024.

Chairman and CEO Lynn Harton stated, “Our second quarter results showed solid improvement, driven by healthy net interest margin expansion and disciplined expense control. We achieved these results by remaining sharply focused on loan and deposit pricing even if that meant accepting slower growth in the near term. Compared with the first quarter, we saw decreases in both loans and deposits, yet our pricing discipline led to a $9.55 million increase in net interest income. We expect loan growth to be weaker in the near term as customers appear to be taking a conservative approach to economic and election uncertainty.” Harton continued, “On the strategic front, after an evaluation of our entire wealth management business, we made the decision to sell our investment in our Registered Investment Advisor, FinTrust Capital Advisors, LLC (FinTrust), while setting a more aggressive growth course for our Private Banking, Retail, and Trust businesses. We view the Private Banking, Retail and Trust as more attractive in the medium to long term, and decided to focus our Wealth resources in these businesses. We expect the FinTrust transaction to close in the third quarter.”

United’s net interest margin increased by 17 basis points to 3.37% from the first quarter. The average yield on United’s interest-earning assets was up 20 basis points to 5.59%, while its cost of deposits increased only three basis points to 2.35%, leading to expansion in the net interest margin. Net charge-offs were $11.6 million or 0.26% of average loans during the quarter, down two basis points compared to the first quarter of 2024, and NPAs were 43 basis points relative to total assets, up four basis points from the previous quarter.

Mr. Harton concluded, “Our second quarter results give me tremendous confidence that 2024 will be a great year for United. We remain focused on being a great partner for our clients and communities; growing our business and remaining disciplined in the face of any challenges that lie ahead. We are steadfast in our commitment to service as well as delivering exceptional value to our shareholders.”

Second Quarter 2024 Financial Highlights:

• Net income of $66.6 million and pre-tax, pre-provision income of $98.2 million
• EPS up 2% compared to second quarter 2023 on a GAAP basis and up 5% on an operating basis; compared to first quarter 2024, EPS up 6% on a GAAP basis and 12% on an operating basis
• Return on assets of 0.97%, or 1.04% on an operating basis
• Pre-tax, pre-provision return on assets of 1.54% on an operating basis
• Return on common equity of 7.53%
• Return on tangible common equity of 11.68% on an operating basis
• A provision for credit losses of $12.2 million, which increased the allowance for credit losses-loans to 1.17% of loans from 1.15% in the first quarter.
• Loan production of $989 million, up from $881 million in the first quarter
• Customer deposits were down $339 million for the quarter, as seasonal public funds deposit outflow combined with more conservative public funds deposit pricing
• Net interest margin of 3.37% increased by 17 basis points from the first quarter mostly due to focus on pricing discipline on loans and deposits
• Mortgage closings of $215 million compared to $263 million a year ago; mortgage rate locks of $295 million compared to $305 million a year ago
• Noninterest income was down $3.0 million on a linked quarter basis, primarily driven by the absence of a $2.4 million gain in the first quarter from terminating an office space lease
• Noninterest expenses increased by $2.0 million compared to the first quarter on a GAAP basis and were flat on an operating basis
• Efficiency ratio of 59.7%, or 57.1% on an operating basis
• Net charge-offs of $11.6 million, or 26 basis points as a percent of average loans, down 2 basis points from the net charge-offs level experienced in the first quarter
• Nonperforming assets of 0.43% of total assets, up four basis points compared to March 31, 2024
• Quarterly common shareholder dividend of $0.23 per share declared during the quarter, unchanged year-over-year
• We reached an agreement to sell FinTrust and recognized a $5.1 million loss related to the sale in the form of a goodwill impairment charge. The transaction is expected to close in the third quarter.

Conference Call
United will hold a conference call on Wednesday, July 24, 2024 at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10190532/fcfa86e478. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, www.ucbi.com.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
			2024								2023											Second Quarter 2024 - 2023 Change			For the Six Months Ended June 30,								YTD 2024 - 2023 Change
		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter								2024				2023
INCOME SUMMARY
Interest revenue		$	346,965			$	336,728			$	338,698			$	323,147			$	295,775						$	683,693			$	575,262
Interest expense			138,265				137,579				135,245				120,591				95,489							275,844				163,506
Net interest revenue			208,700				199,149				203,453				202,556				200,286			4	%			407,849				411,756			(1	)%
Provision for credit losses			12,235				12,899				14,626				30,268				22,753							25,134				44,536
Noninterest income			36,556				39,587				(23,090	)			31,977				36,387			—				76,143				66,596			14
Total revenue			233,021				225,837				165,737				204,265				213,920			9				458,858				433,816			6
Noninterest expenses			147,044				145,002				154,587				144,474				132,407			11				292,046				272,212			7
Income before income tax expense			85,977				80,835				11,150				59,791				81,513			5				166,812				161,604			3
Income tax expense			19,362				18,204				(2,940	)			11,925				18,225			6				37,566				36,016			4
Net income			66,615				62,631				14,090				47,866				63,288			5				129,246				125,588			3
Non-operating items			6,493				2,187				67,450				9,168				3,645							8,680				12,276
Income tax benefit of non-operating items			(1,462	)			(493	)			(16,714	)			(2,000	)			(820	)						(1,955	)			(2,775	)
Net income - operating (1)		$	71,646			$	64,325			$	64,826			$	55,034			$	66,113			8			$	135,971			$	135,089			1
Pre-tax pre-provision income (5)		$	98,212			$	93,734			$	25,776			$	90,059			$	104,266			(6	)		$	191,946			$	206,140			(7	)
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.54			$	0.51			$	0.11			$	0.39			$	0.53			2			$	1.05			$	1.05			—
Diluted net income - operating (1)			0.58				0.52				0.53				0.45				0.55			5				1.10				1.13			(3	)
Cash dividends declared			0.23				0.23				0.23				0.23				0.23			—				0.46				0.46			—
Book value			27.18				26.83				26.52				25.87				25.98			5				27.18				25.98			5
Tangible book value (3)			19.13				18.71				18.39				17.70				17.83			7				19.13				17.83			7
Key performance ratios:
Return on common equity - GAAP (2)(4)			7.53	%			7.14	%			1.44	%			5.32	%			7.47	%						7.34	%			7.41	%
Return on common equity - operating (1)(2)(4)			8.12				7.34				7.27				6.14				7.82							7.73				7.98
Return on tangible common equity - operating (1)(2)(3)(4)			11.68				10.68				10.58				9.03				11.35							11.18				11.49
Return on assets - GAAP (4)			0.97				0.90				0.18				0.68				0.95							0.94				0.95
Return on assets - operating (1)(4)			1.04				0.93				0.92				0.79				1.00							0.99				1.03
Return on assets - pre-tax pre-provision - operating(1)(4)(5)			1.54				1.40				1.33				1.44				1.65							1.47				1.68
Net interest margin (fully taxable equivalent) (4)			3.37				3.20				3.19				3.24				3.37							3.28				3.49
Efficiency ratio - GAAP			59.70				60.47				66.33				61.32				55.71							60.08				56.46
Efficiency ratio - operating (1)			57.06				59.15				59.57				57.43				54.17							58.08				53.92
Equity to total assets			12.35				12.06				11.95				11.85				11.89							12.35				11.89
Tangible common equity to tangible assets (3)			8.78				8.49				8.36				8.18				8.21							8.78				8.21
ASSET QUALITY
Nonperforming assets ("NPAs")		$	116,722			$	107,230			$	92,877			$	90,883			$	103,737			13			$	116,722			$	103,737			13
Allowance for credit losses - loans			213,022				210,934				208,071				201,557				190,705			12				213,022				190,705			12
Allowance for credit losses - total			224,740				224,119				224,128				219,624				212,277			6				224,740				212,277			6
Net charge-offs			11,614				12,908				10,122				26,638				8,399							24,522				15,483
Allowance for credit losses - loans to loans			1.17	%			1.15	%			1.14	%			1.11	%			1.10	%						1.17	%			1.10	%
Allowance for credit losses - total to loans			1.23				1.22				1.22				1.21				1.22							1.23				1.22
Net charge-offs to average loans (4)			0.26				0.28				0.22				0.59				0.20							0.27				0.18
NPAs to total assets			0.43				0.39				0.34				0.34				0.40							0.43				0.40
AT PERIOD END ($ in millions)
Loans		$	18,211			$	18,375			$	18,319			$	18,203			$	17,395			5			$	18,211			$	17,395			5
Investment securities			6,038				5,859				5,822				5,701				5,914			2				6,038				5,914			2
Total assets			27,057				27,365				27,297				26,869				26,120			4				27,057				26,120			4
Deposits			22,982				23,332				23,311				22,858				22,252			3				22,982				22,252			3
Shareholders’ equity			3,343				3,300				3,262				3,184				3,106			8				3,343				3,106			8
Common shares outstanding (thousands)			119,175				119,137				119,010				118,976				115,266			3				119,175				115,266			3

_{⁽¹⁾ Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. ⁽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⁾ Excludes income tax expense and provision for credit losses.}

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
(in thousands, except per share data)
			2024								2023											For the Six Months Ended June 30,
		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter					2024				2023
Noninterest expense reconciliation
Noninterest expenses (GAAP)		$	147,044			$	145,002			$	154,587			$	144,474			$	132,407			$	292,046			$	272,212
Loss on FinTrust (goodwill impairment)			(5,100	)			—				—				—				—				(5,100	)			—
FDIC special assessment			764				(2,500	)			(9,995	)			—				—				(1,736	)			—
Merger-related and other charges			(2,157	)			(2,087	)			(5,766	)			(9,168	)			(3,645	)			(4,244	)			(12,276	)
Noninterest expenses - operating		$	140,551			$	140,415			$	138,826			$	135,306			$	128,762			$	280,966			$	259,936
Net income to operating income reconciliation
Net income (GAAP)		$	66,615			$	62,631			$	14,090			$	47,866			$	63,288			$	129,246			$	125,588
Bond portfolio restructuring loss			—				—				51,689				—				—				—				—
Gain on lease termination			—				(2,400	)			—				—				—				(2,400	)			—
Loss on FinTrust (goodwill impairment)			5,100				—				—				—				—				5,100				—
FDIC special assessment			(764	)			2,500				9,995				—				—				1,736				—
Merger-related and other charges			2,157				2,087				5,766				9,168				3,645				4,244				12,276
Income tax benefit of non-operating items			(1,462	)			(493	)			(16,714	)			(2,000	)			(820	)			(1,955	)			(2,775	)
Net income - operating		$	71,646			$	64,325			$	64,826			$	55,034			$	66,113			$	135,971			$	135,089
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)		$	66,615			$	62,631			$	14,090			$	47,866			$	63,288			$	129,246			$	125,588
Income tax expense			19,362				18,204				(2,940	)			11,925				18,225				37,566				36,016
Provision for credit losses			12,235				12,899				14,626				30,268				22,753				25,134				44,536
Pre-tax pre-provision income		$	98,212			$	93,734			$	25,776			$	90,059			$	104,266			$	191,946			$	206,140
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.54			$	0.51			$	0.11			$	0.39			$	0.53			$	1.05			$	1.05
Bond portfolio restructuring loss			—				—				0.32				—				—				—				—
Gain on lease termination			—				(0.02	)			—				—				—				(0.02	)			—
Loss on FinTrust (goodwill impairment)			0.03				—				—				—				—				0.03				—
FDIC special assessment			—				0.02				0.06				—				—				0.02				—
Merger-related and other charges			0.01				0.01				0.04				0.06				0.02				0.02				0.08
Diluted income per common share - operating		$	0.58			$	0.52			$	0.53			$	0.45			$	0.55			$	1.10			$	1.13
Book value per common share reconciliation
Book value per common share (GAAP)		$	27.18			$	26.83			$	26.52			$	25.87			$	25.98			$	27.18			$	25.98
Effect of goodwill and other intangibles			(8.05	)			(8.12	)			(8.13	)			(8.17	)			(8.15	)			(8.05	)			(8.15	)
Tangible book value per common share		$	19.13			$	18.71			$	18.39			$	17.70			$	17.83			$	19.13			$	17.83
Return on tangible common equity reconciliation
Return on common equity (GAAP)			7.53	%			7.14	%			1.44	%			5.32	%			7.47	%			7.34	%			7.41	%
Bond portfolio restructuring loss			—				—				4.47				—				—				—				—
Gain on lease termination			—				(0.22	)			—				—				—				(0.11	)			—
Loss on FinTrust (goodwill impairment)			0.46				—				—				—				—				0.23				—
FDIC special assessment			(0.07	)			0.23				0.86				—				—				0.08				—
Merger-related and other charges			0.20				0.19				0.50				0.82				0.35				0.19				0.57
Return on common equity - operating			8.12				7.34				7.27				6.14				7.82				7.73				7.98
Effect of goodwill and other intangibles			3.56				3.34				3.31				2.89				3.53				3.45				3.51
Return on tangible common equity - operating			11.68	%			10.68	%			10.58	%			9.03	%			11.35	%			11.18	%			11.49	%
Return on assets reconciliation
Return on assets (GAAP)			0.97	%			0.90	%			0.18	%			0.68	%			0.95	%			0.94	%			0.95	%
Bond portfolio restructuring loss			—				—				0.57				—				—				—				—
Gain on lease termination			—				(0.03	)			—				—				—				(0.01	)			—
Loss on FinTrust (goodwill impairment)			0.06				—				—				—				—				0.03				—
FDIC special assessment			(0.01	)			0.03				0.11				—				—				0.01				—
Merger-related and other charges			0.02				0.03				0.06				0.11				0.05				0.02				0.08
Return on assets - operating			1.04	%			0.93	%			0.92	%			0.79	%			1.00	%			0.99	%			1.03	%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)			0.97	%			0.90	%			0.18	%			0.68	%			0.95	%			0.94	%			0.95	%
Income tax (benefit) expense			0.29				0.27				(0.04	)			0.18				0.29				0.28				0.28
Provision for credit losses			0.18				0.19				0.21				0.45				0.35				0.19				0.35
Bond portfolio restructuring loss			—				—				0.75				—				—				—				—
Gain on lease termination			—				(0.04	)			—				—				—				(0.02	)			—
Loss on FinTrust (goodwill impairment)			0.08				—				—				—				—				0.04				—
FDIC special assessment			(0.01	)			0.04				0.15				—				—				0.01				—
Merger-related and other charges			0.03				0.04				0.08				0.13				0.06				0.03				0.10
Return on assets - pre-tax pre-provision - operating			1.54	%			1.40	%			1.33	%			1.44	%			1.65	%			1.47	%			1.68	%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)			59.70	%			60.47	%			66.33	%			61.32	%			55.71	%			60.08	%			56.46	%
Gain on lease termination			—				0.60				—				—				—				0.29				—
Loss on FinTrust (goodwill impairment)			(2.07	)			—				—				—				—				(1.05	)			—
FDIC special assessment			0.31				(1.05	)			(4.29	)			—				—				(0.36	)			—
Merger-related and other charges			(0.88	)			(0.87	)			(2.47	)			(3.89	)			(1.54	)			(0.88	)			(2.54	)
Efficiency ratio - operating			57.06	%			59.15	%			59.57	%			57.43	%			54.17	%			58.08	%			53.92	%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)			12.35	%			12.06	%			11.95	%			11.85	%			11.89	%			12.35	%			11.89	%
Effect of goodwill and other intangibles			(3.24	)			(3.25	)			(3.27	)			(3.33	)			(3.31	)			(3.24	)			(3.31	)
Effect of preferred equity			(0.33	)			(0.32	)			(0.32	)			(0.34	)			(0.37	)			(0.33	)			(0.37	)
Tangible common equity to tangible assets			8.78	%			8.49	%			8.36	%			8.18	%			8.21	%			8.78	%			8.21	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
		2024								2023											Linked Quarter Change				Year over Year Change
(in millions)	Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	3,297			$	3,310			$	3,264			$	3,279			$	3,111			$	(13	)		$	186
Income producing commercial RE		4,058				4,206				4,264				4,130				3,670				(148	)			388
Commercial & industrial		2,299				2,405				2,411				2,504				2,550				(106	)			(251	)
Commercial construction		2,014				1,936				1,860				1,850				1,739				78				275
Equipment financing		1,581				1,544				1,541				1,534				1,510				37				71
Total commercial		13,249				13,401				13,340				13,297				12,580				(152	)			669
Residential mortgage		3,266				3,240				3,199				3,043				2,905				26				361
Home equity		985				969				959				941				927				16				58
Residential construction		211				257				302				399				463				(46	)			(252	)
Manufactured housing		321				328				336				343				340				(7	)			(19	)
Consumer		183				180				181				180				180				3				3
Fair value hedge basis adjustment		(4	)			—				2				—				—				(4	)			(4	)
Total loans	$	18,211			$	18,375			$	18,319			$	18,203			$	17,395			$	(164	)		$	816
LOANS BY MARKET
Georgia	$	4,411			$	4,356			$	4,357			$	4,321			$	4,281			$	55			$	130
South Carolina		2,779				2,804				2,780				2,801				2,750				(25	)			29
North Carolina		2,591				2,566				2,492				2,445				2,355				25				236
Tennessee		2,144				2,209				2,244				2,314				2,387				(65	)			(243	)
Florida		2,407				2,443				2,442				2,318				1,708				(36	)			699
Alabama		1,021				1,068				1,082				1,070				1,062				(47	)			(41	)
Commercial Banking Solutions		2,858				2,929				2,922				2,934				2,852				(71	)			6
Total loans	$	18,211			$	18,375			$	18,319			$	18,203			$	17,395			$	(164	)		$	816

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
			2024								2023
		Second Quarter				First Quarter				Fourth Quarter
NONACCRUAL LOANS
Owner occupied RE		$	4,820			$	2,310			$	3,094
Income producing RE			34,285				29,186				30,128
Commercial & industrial			17,335				20,134				13,467
Commercial construction			6,854				1,862				1,878
Equipment financing			8,341				8,829				8,505
Total commercial			71,635				62,321				57,072
Residential mortgage			18,473				16,569				13,944
Home equity			3,779				4,984				3,772
Residential construction			163				1,244				944
Manufactured housing			20,356				19,797				15,861
Consumer			72				54				94
Total nonaccrual loans			114,478				104,969				91,687
OREO and repossessed assets			2,244				2,261				1,190
Total NPAs		$	116,722			$	107,230			$	92,877

			2024														2023
		Second Quarter							First Quarter							Fourth Quarter
(in thousands)		Net Charge- Offs				Net Charge- Offs to Average Loans (1)			Net Charge- Offs				Net Charge- Offs to Average Loans (1)			Net Charge- Offs				Net Charge- Offs to Average Loans (1)
NET CHARGE-OFFS (RECOVERIES) BY CATEGORY
Owner occupied RE		$	163			0.02	%		$	202			0.02	%		$	35			—	%
Income producing RE			2,968			0.29				205			0.02				(562	)		(0.05	)
Commercial & industrial			1,281			0.22				3,906			0.65				547			0.09
Commercial construction			(48	)		(0.01	)			20			—				33			0.01
Equipment financing			5,502			1.42				6,362			1.66				7,926			2.05
Total commercial			9,866			0.30				10,695			0.32				7,979			0.24
Residential mortgage			(107	)		(0.01	)			(16	)		—				12			—
Home equity			(27	)		(0.01	)			(54	)		(0.02	)			(68	)		(0.03	)
Residential construction			26			0.04				119			0.17				(13	)		(0.01	)
Manufactured housing			1,150			1.43				1,569			1.90				1,444			1.69
Consumer			706			1.57				595			1.33				768			1.70
Total		$	11,614			0.26			$	12,908			0.28			$	10,122			0.22
(1) Annualized.

UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)		June 30, 2024				December 31, 2023
ASSETS
Cash and due from banks		$	198,234			$	200,781
Interest-bearing deposits in banks			364,629				803,094
Cash and cash equivalents			562,863				1,003,875
Debt securities available-for-sale			3,604,769				3,331,084
Debt securities held-to-maturity (fair value $2,004,427 and $2,095,620, respectively)			2,432,941				2,490,848
Loans held for sale			49,315				33,008
Loans and leases held for investment			18,211,193				18,318,755
Allowance for credit losses - loans and leases			(213,022	)			(208,071	)
Loans and leases, net			17,998,171				18,110,684
Premises and equipment, net			395,202				378,421
Bank owned life insurance			344,162				345,371
Goodwill and other intangible assets, net			978,645				990,087
Other assets			691,133				613,873
Total assets		$	27,057,201			$	27,297,251
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	6,291,124			$	6,534,307
NOW and interest-bearing demand			5,794,085				6,155,193
Money market			6,077,129				5,600,587
Savings			1,144,696				1,207,807
Time			3,510,917				3,649,498
Brokered			164,171				163,219
Total deposits			22,982,122				23,310,611
Long-term debt			324,887				324,823
Accrued expenses and other liabilities			407,559				400,292
Total liabilities			23,714,568				24,035,726
Shareholders' equity:
Preferred stock; $1 par value; 10,000,000 shares authorized; 3,662 shares Series I issued and outstanding; $25,000 per share liquidation preference			88,266				88,266
Common stock, $1 par value; 200,000,000 shares authorized, 119,174,803 and 119,010,319 shares issued and outstanding, respectively			119,175				119,010
Common stock issuable; 568,985 and 620,108 shares, respectively			12,145				13,110
Capital surplus			2,705,345				2,699,112
Retained earnings			652,239				581,219
Accumulated other comprehensive loss			(234,537	)			(239,192	)
Total shareholders' equity			3,342,633				3,261,525
Total liabilities and shareholders' equity		$	27,057,201			$	27,297,251

UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share data)			2024			2023			2024			2023
Interest revenue:
Loans, including fees		$	291,595		$	250,484		$	575,578		$	486,915
Investment securities, including tax exempt of $1,699, $1,731, $3,420 and $3,841, respectively			50,063			41,060			96,499			81,046
Deposits in banks and short-term investments			5,307			4,231			11,616			7,301
Total interest revenue			346,965			295,775			683,693			575,262
Interest expense:
Deposits:
NOW and interest-bearing demand			43,910			27,597			90,121			45,196
Money market			53,531			33,480			104,009			58,546
Savings			687			702			1,393			1,240
Time			36,334			27,438			72,723			42,096
Deposits			134,462			89,217			268,246			147,078
Short-term borrowings			60			1,849			60			2,997
Federal Home Loan Bank advances			—			649			—			5,761
Long-term debt			3,743			3,774			7,538			7,670
Total interest expense			138,265			95,489			275,844			163,506
Net interest revenue			208,700			200,286			407,849			411,756
Provision for credit losses			12,235			22,753			25,134			44,536
Net interest revenue after provision for credit losses			196,465			177,533			382,715			367,220
Noninterest income:
Service charges and fees			10,620			9,777			19,884			18,476
Mortgage loan gains and other related fees			6,799			6,584			14,310			11,105
Wealth management fees			6,386			5,600			12,699			11,324
Gains from sales of other loans			1,296			2,305			2,833			4,221
Lending and loan servicing fees			3,328			2,978			7,538			6,994
Securities losses, net			—			—			—			(1,644	)
Other			8,127			9,143			18,879			16,120
Total noninterest income			36,556			36,387			76,143			66,596
Total revenue			233,021			213,920			458,858			433,816
Noninterest expenses:
Salaries and employee benefits			85,818			76,250			170,803			154,948
Communications and equipment			11,988			10,744			23,908			20,752
Occupancy			11,056			10,194			22,155			20,083
Advertising and public relations			2,459			2,314			4,360			4,663
Postage, printing and supplies			2,251			2,382			4,899			4,919
Professional fees			6,044			6,592			12,032			12,664
Lending and loan servicing expense			2,014			2,530			3,841			4,849
Outside services - electronic banking			2,812			2,660			5,730			6,085
FDIC assessments and other regulatory charges			4,467			4,142			12,033			8,143
Amortization of intangibles			3,794			3,421			7,681			6,949
Merger-related and other charges			2,157			3,645			4,244			12,276
Other			12,184			7,533			20,360			15,881
Total noninterest expenses			147,044			132,407			292,046			272,212
Income before income taxes			85,977			81,513			166,812			161,604
Income tax expense			19,362			18,225			37,566			36,016
Net income			66,615			63,288			129,246			125,588
Preferred stock dividends			1,573			1,719			3,146			3,438
Earnings allocated to participating securities			368			342			713			680
Net income available to common shareholders		$	64,674		$	61,227		$	125,387		$	121,470
Net income per common share:
Basic		$	0.54		$	0.53		$	1.05		$	1.05
Diluted			0.54			0.53			1.05			1.05
Weighted average common shares outstanding:
Basic			119,726			115,774			119,694			115,614
Diluted			119,785			115,869			119,763			115,795

Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended June 30,
			2024											2023
(dollars in thousands, fully taxable equivalent (FTE))		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)		$	18,213,384			$	291,378			6.43	%		$	17,166,129			$	250,472			5.85	%
Taxable securities (3)			5,952,414				48,364			3.25				5,956,193				39,329			2.64
Tax-exempt securities (FTE) (1)(3)			363,393				2,273			2.50				369,364				2,323			2.52
Federal funds sold and other interest-earning assets			499,565				6,011			4.84				461,022				4,658			4.05
Total interest-earning assets (FTE)			25,028,756				348,026			5.59				23,952,708				296,782			4.97
Noninterest-earning assets:
Allowance for credit losses			(215,104	)										(181,769	)
Cash and due from banks			204,792											251,691
Premises and equipment			392,325											345,771
Other assets (3)			1,605,558											1,500,827
Total assets		$	27,016,327										$	25,869,228
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	5,866,038				43,910			3.01			$	4,879,591				27,597			2.27
Money market			6,068,530				53,531			3.55				5,197,789				33,480			2.58
Savings			1,160,708				687			0.24				1,306,394				702			0.22
Time			3,544,327				35,695			4.05				2,976,482				22,471			3.03
Brokered time deposits			50,323				639			5.11				423,536				4,967			4.70
Total interest-bearing deposits			16,689,926				134,462			3.24				14,783,792				89,217			2.42
Federal funds purchased and other borrowings			4,093				60			5.90				145,233				1,849			5.11
Federal Home Loan Bank advances			—				—			—				50,989				649			5.11
Long-term debt			324,870				3,743			4.63				324,740				3,774			4.66
Total borrowed funds			328,963				3,803			4.65				520,962				6,272			4.83
Total interest-bearing liabilities			17,018,889				138,265			3.27				15,304,754				95,489			2.50
Noninterest-bearing liabilities:
Noninterest-bearing deposits			6,283,487											7,072,760
Other liabilities			400,974											385,324
Total liabilities			23,703,350											22,762,838
Shareholders' equity			3,312,977											3,106,390
Total liabilities and shareholders' equity		$	27,016,327										$	25,869,228
Net interest revenue (FTE)						$	209,761										$	201,293
Net interest-rate spread (FTE)										2.32	%										2.47	%
Net interest margin (FTE) (4)										3.37	%										3.37	%

(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 25% in 2024 and 26% in 2023, 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 on which the accrual of interest has been discontinued and loans that are held for sale.
(3)	Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $344 million in 2024 and $389 million in 2023 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.

Average Consolidated Balance Sheets and Net Interest Analysis For the Six Months Ended June 30,
			2024											2023
(dollars in thousands, fully taxable equivalent (FTE))		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)		$	18,256,562			$	575,338			6.34	%		$	17,032,493			$	487,002			5.77	%
Taxable securities (3)			5,890,408				93,079			3.16				6,007,471				77,205			2.57
Tax-exempt securities (FTE) (1)(3)			364,873				4,584			2.51				395,827				5,157			2.61
Federal funds sold and other interest-earning assets			587,080				12,816			4.39				466,642				8,010			3.46
Total interest-earning assets (FTE)			25,098,923				685,817			5.49				23,902,433				577,374			4.87
Non-interest-earning assets:
Allowance for loan losses			(214,050	)										(174,716	)
Cash and due from banks			212,998											261,397
Premises and equipment			389,173											337,499
Other assets (3)			1,611,928											1,492,926
Total assets		$	27,098,972										$	25,819,539
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	5,972,065				90,121			3.03			$	4,690,798				45,196			1.94
Money market			5,966,374				104,009			3.51				5,210,457				58,546			2.27
Savings			1,176,768				1,393			0.24				1,361,357				1,240			0.18
Time			3,570,407				71,639			4.03				2,664,269				34,784			2.63
Brokered time deposits			50,333				1,084			4.33				316,470				7,312			4.66
Total interest-bearing deposits			16,735,947				268,246			3.22				14,243,351				147,078			2.08
Federal funds purchased and other borrowings			2,054				60			5.87				126,697				2,997			4.77
Federal Home Loan Bank advances			2				—			—				250,912				5,761			4.63
Long-term debt			324,854				7,538			4.67				324,721				7,670			4.76
Total borrowed funds			326,910				7,598			4.67				702,330				16,428			4.72
Total interest-bearing liabilities			17,062,857				275,844			3.25				14,945,681				163,506			2.21
Noninterest-bearing liabilities:
Noninterest-bearing deposits			6,340,783											7,383,575
Other liabilities			395,713											371,422
Total liabilities			23,799,353											22,700,678
Shareholders' equity			3,299,619											3,118,861
Total liabilities and shareholders' equity		$	27,098,972										$	25,819,539
Net interest revenue (FTE)						$	409,973										$	413,868
Net interest-rate spread (FTE)										2.24	%										2.66	%
Net interest margin (FTE) (4)										3.28	%										3.49	%

(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 25% in 2024 and 26% in 2023, 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 on which the accrual of interest has been discontinued and loans that are held for sale.
(3)	Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $333 million in 2024 and $404 million in 2023 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.

About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management and mortgage services. As of June 30, 2024, United Community Banks, Inc. had $27.1 billion in assets, 203 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power’s award for best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United Community was named by American Banker as one of the “Best Banks to Work For” for the seventh consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. Additional information about United 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 “noninterest expense - operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax, pre-provision - operating,” “return on assets - pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible 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
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. 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. Factors that could cause or contribute to such differences include, but are not limited to general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.

United qualifies all forward-looking statements by these cautionary statements.

For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com

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