Press Release Details

EPS of $0.82, Return on Assets of 1.62% and Return on Common Equity of 15.4%

GREENVILLE, S.C., April 20, 2021 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the first quarter reached a record $73.7 million and pre-tax, pre-provision income was $81.6 million. The quarter benefited from an allowance release of $12.3 million, as economic conditions and forecasts continue to improve. Diluted earnings per share of $0.82 for the quarter represented an increase of $0.42 or 105%, from the first quarter a year ago, and represented an increase of $0.16 or 24% over the fourth quarter of 2020. On an operating basis, United’s diluted earnings per share of $0.83 was an increase of 102% over the year ago quarter. United’s GAAP return on assets (ROA) was 1.62% and its return on common equity was 15.4% for the quarter. On an operating basis, United’s ROA was 1.65% and its return on tangible common equity was 19.7%. On a pre-tax, pre-provision basis, return on assets was 1.83% for the quarter.

Chairman and CEO Lynn Harton stated, “We continue to have strong performance across our businesses and markets, driven by an improving economy, southeastern markets that are outperforming national averages, and great execution by our bankers. Loan growth, while slower than the previous two quarters, continues to be positive and deposit growth continues at a strong pace. Credit results were outstanding and we believe the record stimulus, strong liquidity levels of consumers and businesses, and pent up demand has the potential to deliver strong economic growth for several quarters.”

Total loans increased by $308 million during the quarter—impacted by a $237 million increase in SBA Paycheck Protection Program (PPP) loans. During the quarter, United funded nearly 5,100 loans totaling $518 million, and had $311 million in PPP loans forgiven. Excluding the effect of PPP loans, core organic loan growth was 3% annualized. Core transaction deposits grew by $948 million during the quarter, or 33% annualized, and United’s cost of deposits decreased by 3 basis points to 0.14%. The net interest margin decreased by 33 basis points from the fourth quarter due mainly to a $9.5 million decline in the recognition of PPP fees, as well as $1.8 million less purchased loan accretion. Excluding these items, the net interest margin decreased by approximately 7 basis points from the fourth quarter due to a combination of factors, including lower overall market rates and increased liquidity.

Mr. Harton concluded, “We are excited about the ongoing opportunities in our markets and look forward to the rest of 2021. I also want to recognize our entire team for their performance. Earlier this quarter, Forbes recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. Forbes’ ranks the banks based on growth, credit quality and profitability and United was again a standout. I am incredibly proud of our employees who make this type of recognition possible through their tireless dedication to our customers, our culture and fulfilling our performance mission.”

First Quarter 2021 Financial Highlights:

• Net income of $73.7 million and pre-tax, pre-provision income of $81.6 million
• EPS increased by 105% compared to last year on a GAAP basis and 102% on an operating basis; compared to fourth quarter 2020, EPS increased by 24% on a GAAP basis and 22% on an operating basis
• Return on assets of 1.62%, or 1.65% on an operating basis
• Pre-tax, pre-provision return on assets of 1.80%, or 1.83% on an operating basis
• Return on common equity of 15.4%
• Return on tangible common equity of 19.7% on an operating basis
• A release of provision for credit losses of $12.3 million, which reduced the allowance for loan losses to 1.09% (1.18%, excluding PPP loans) from 1.20% in the fourth quarter
• Loan production of $1.5 billion, resulting in core loan growth of 3%, annualized for the quarter, excluding the impact of $518 million in new PPP loans and $311 million in PPP loans being forgiven
• Core transaction deposits were up $948 million, which represents a 33% annualized growth rate for the quarter
• Net interest margin of 3.22% was down 33 basis points from the fourth quarter, mainly due to the impact of accelerated PPP fees during the fourth quarter
• Record mortgage closings of $666 million and mortgage rate locks of $993 million, compared to $388 million and $801 million, respectively, a year ago
• Noninterest income was up $3.3 million on a linked quarter basis, primarily driven by higher mortgage loan gains and related fees
• Noninterest expenses decreased by $11.3 million compared to the fourth quarter mostly due to funding for the United Community Bank Foundation of $8.5 million in the fourth quarter
• Efficiency ratio of 53.6%, or 52.7% on an operating basis
• Net recoveries of $305,000, or one basis point as a percent of average loans, down 6 basis points from the fourth quarter
• Nonperforming assets of 0.30% of total assets, down 5 basis points compared to December 31, 2020
• Total loan deferrals of $48 million or 0.4% of the total loan portfolio compared to $71 million or 0.6% in the fourth quarter
• Quarterly common shareholder dividend of $0.19 per share declared during the quarter, an increase of 6% year-over-year
• Successfully completed the operational conversion of Seaside during the quarter
  

Conference Call

United will hold a conference call on Wednesday, April 21, 2021, 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 9792368. 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.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information

		2021					2020																				First Quarter 2021 - 2020 Change
(in thousands, except per share data)		First Quarter					Fourth Quarter					Third Quarter					Second Quarter					First Quarter
INCOME SUMMARY
Interest revenue		$	141,542				$	156,071				$	141,773				$	123,605				$	136,547
Interest expense		9,478					10,676					13,319					14,301					17,941
Net interest revenue		132,064					145,395					128,454					109,304					118,606					11	%
(Release of) provision for credit losses		(12,281		)			2,907					21,793					33,543					22,191
Noninterest income		44,705					41,375					48,682					40,238					25,814					73
Total revenue		189,050					183,863					155,343					115,999					122,229					55
Expenses		95,194					106,490					95,981					83,980					81,538					17
Income before income tax expense		93,856					77,373					59,362					32,019					40,691					131
Income tax expense		20,150					17,871					11,755					6,923					8,807					129
Net income		73,706					59,502					47,607					25,096					31,884					131
Merger-related and other charges		1,543					2,452					3,361					397					808
Income tax benefit of merger-related and other charges		(335		)			(552		)			(519		)			(87		)			(182		)
Net income - operating (1)		$	74,914				$	61,402				$	50,449				$	25,406				$	32,510				130
Pre-tax pre-provision income (5)		$	81,575				$	80,280				$	81,155				$	65,562				$	62,882				30
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.82				$	0.66				$	0.52				$	0.32				$	0.40				105
Diluted net income - operating (1)		0.83					0.68					0.55					0.32					0.41					102
Cash dividends declared		0.19					0.18					0.18					0.18					0.18					6
Book value		22.15					21.90					21.45					21.22					20.80					6
Tangible book value (3)		17.83					17.56					17.09					16.95					16.52					8
Key performance ratios:
Return on common equity - GAAP (2)(4)		15.37			%		12.36			%		10.06			%		6.17			%		7.85			%
Return on common equity - operating (1)(2)(4)		15.63					12.77					10.69					6.25					8.01
Return on tangible common equity - operating (1)(2)(3)(4)		19.68					16.23					13.52					8.09					10.57
Return on assets - GAAP (4)		1.62					1.30					1.07					0.71					0.99
Return on assets - operating (1)(4)		1.65					1.34					1.14					0.72					1.01
Return on assets - pre-tax pre-provision (4)(5)		1.80					1.77					1.86					1.86					1.95
Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5)		1.83					1.82					1.93					1.87					1.98
Net interest margin (fully taxable equivalent) (4)		3.22					3.55					3.27					3.42					4.07
Efficiency ratio - GAAP		53.55					56.73					54.14					55.86					56.15
Efficiency ratio - operating (1)		52.68					55.42					52.24					55.59					55.59
Equity to total assets		10.95					11.29					11.47					11.81					12.54
Tangible common equity to tangible assets (3)		8.57					8.81					8.89					9.12					10.22
ASSET QUALITY
Nonperforming loans		$	55,900				$	61,599				$	49,084				$	48,021				$	36,208				54
Foreclosed properties		596					647					953					477					475
Total nonperforming assets ("NPAs")		56,496					62,246					50,037					48,498					36,683					54
Allowance for credit losses - loans		126,866					137,010					134,256					103,669					81,905					55
Net charge-offs		(305		)			1,515					2,538					6,149					8,114
Allowance for credit losses - loans to loans		1.09			%		1.20			%		1.14			%		1.02			%		0.92			%
Net charge-offs to average loans (4)		(0.01		)			0.05					0.09					0.25					0.37
NPAs to loans and foreclosed properties		0.48					0.55					0.42					0.48					0.41
NPAs to total assets		0.30					0.35					0.29					0.32					0.28
AVERAGE BALANCES ($ in millions)
Loans		$	11,433				$	11,595				$	11,644				$	9,773				$	8,829				29
Investment securities		3,991					3,326					2,750					2,408					2,520					58
Earning assets		16,782					16,394					15,715					12,958					11,798					42
Total assets		18,023					17,698					17,013					14,173					12,944					39
Deposits		15,366					15,057					14,460					12,071					10,915					41
Shareholders’ equity		2,025					1,994					1,948					1,686					1,653					23
Common shares - basic (thousands)		87,322					87,258					87,129					78,920					79,340					10
Common shares - diluted (thousands)		87,466					87,333					87,205					78,924					79,446					10
AT PERIOD END ($ in millions)
Loans		$	11,679				$	11,371				$	11,799				$	10,133				$	8,935				31
Investment securities		4,332					3,645					3,089					2,432					2,540					71
Total assets		18,557					17,794					17,153					15,005					13,086					42
Deposits		15,993					15,232					14,603					12,702					11,035					45
Shareholders’ equity		2,031					2,008					1,967					1,772					1,641					24
Common shares outstanding (thousands)		86,777					86,675					86,611					78,335					78,284					11

⁽¹⁾ Excludes merger-related and other charges. ⁽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
Selected Financial Information

		2021					2020
(in thousands, except per share data)		First Quarter					Fourth Quarter					Third Quarter					Second Quarter					First Quarter
Expense reconciliation
Expenses (GAAP)		$	95,194				$	106,490				$	95,981				$	83,980				$	81,538
Merger-related and other charges		(1,543		)			(2,452		)			(3,361		)			(397		)			(808		)
Expenses - operating		$	93,651				$	104,038				$	92,620				$	83,583				$	80,730
Net income reconciliation
Net income (GAAP)		$	73,706				$	59,502				$	47,607				$	25,096				$	31,884
Merger-related and other charges		1,543					2,452					3,361					397					808
Income tax benefit of merger-related and other charges		(335		)			(552		)			(519		)			(87		)			(182		)
Net income - operating		$	74,914				$	61,402				$	50,449				$	25,406				$	32,510
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)		$	73,706				$	59,502				$	47,607				$	25,096				$	31,884
Income tax expense		20,150					17,871					11,755					6,923					8,807
(Release of) provision for credit losses		(12,281		)			2,907					21,793					33,543					22,191
Pre-tax pre-provision income		$	81,575				$	80,280				$	81,155				$	65,562				$	62,882
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.82				$	0.66				$	0.52				$	0.32				$	0.40
Merger-related and other charges, net of tax		0.01					0.02					0.03					—					0.01
Diluted income per common share - operating		$	0.83				$	0.68				$	0.55				$	0.32				$	0.41
Book value per common share reconciliation
Book value per common share (GAAP)		$	22.15				$	21.90				$	21.45				$	21.22				$	20.80
Effect of goodwill and other intangibles		(4.32		)			(4.34		)			(4.36		)			(4.27		)			(4.28		)
Tangible book value per common share		$	17.83				$	17.56				$	17.09				$	16.95				$	16.52
Return on tangible common equity reconciliation
Return on common equity (GAAP)		15.37			%		12.36			%		10.06			%		6.17			%		7.85			%
Merger-related and other charges, net of tax		0.26					0.41					0.63					0.08					0.16
Return on common equity - operating		15.63					12.77					10.69					6.25					8.01
Effect of goodwill and other intangibles		4.05					3.46					2.83					1.84					2.56
Return on tangible common equity - operating		19.68			%		16.23			%		13.52			%		8.09			%		10.57			%
Return on assets reconciliation
Return on assets (GAAP)		1.62			%		1.30			%		1.07			%		0.71			%		0.99			%
Merger-related and other charges, net of tax		0.03					0.04					0.07					0.01					0.02
Return on assets - operating		1.65			%		1.34			%		1.14			%		0.72			%		1.01			%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)		1.62			%		1.30			%		1.07			%		0.71			%		0.99			%
Income tax expense		0.46					0.40					0.28					0.20					0.27
(Release of) provision for credit losses		(0.28		)			0.07					0.51					0.95					0.69
Return on assets - pre-tax, pre-provision		1.80					1.77					1.86					1.86					1.95
Merger-related and other charges		0.03					0.05					0.07					0.01					0.03
Return on assets - pre-tax pre-provision, excluding merger-related and other charges		1.83			%		1.82			%		1.93			%		1.87			%		1.98			%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)		53.55			%		56.73			%		54.14			%		55.86			%		56.15			%
Merger-related and other charges		(0.87		)			(1.31		)			(1.90		)			(0.27		)			(0.56		)
Efficiency ratio - operating		52.68			%		55.42			%		52.24			%		55.59			%		55.59			%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		10.95			%		11.29			%		11.47			%		11.81			%		12.54			%
Effect of goodwill and other intangibles		(1.86		)			(1.94		)			(2.02		)			(2.05		)			(2.32		)
Effect of preferred equity		(0.52		)			(0.54		)			(0.56		)			(0.64		)			—
Tangible common equity to tangible assets		8.57			%		8.81			%		8.89			%		9.12			%		10.22			%

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

	2021				2020																Linked Quarter Change					Year over Year Change
(in millions)	First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	2,107			$	2,090			$	2,009			$	1,759			$	1,703			$	17				$	404
Income producing commercial RE	2,599				2,541				2,493				2,178				2,065				58					534
Commercial & industrial	1,760				1,853				1,788				1,219				1,310				(93		)			450
Paycheck protection program	883				646				1,317				1,095				—				237					883
Commercial construction	960				967				987				946				959				(7		)			1
Equipment financing	913				864				823				779				761				49					152
Total commercial	9,222				8,961				9,417				7,976				6,798				261					2,424
Residential mortgage	1,362				1,285				1,270				1,152				1,128				77					234
Home equity lines of credit	679				697				707				654				668				(18		)			11
Residential construction	272				281				257				230				216				(9		)			56
Consumer	144				147				148				121				125				(3		)			19
Total loans	$	11,679			$	11,371			$	11,799			$	10,133			$	8,935			$	308				$	2,744
LOANS BY MARKET (1)
North Georgia	$	982			$	955			$	945			$	951			$	958			$	27				$	24
Atlanta	1,953				1,889				1,853				1,852				1,820				64					133
North Carolina	1,326				1,281				1,246				1,171				1,124				45					202
Coastal Georgia	597				617				614				618				604				(20		)			(7		)
Gainesville	222				224				229				233				235				(2		)			(13		)
East Tennessee	398				415				420				433				425				(17		)			(27		)
South Carolina	1,997				1,947				1,870				1,778				1,774				50					223
Florida	1,160				1,435				1,453				—				—				(275		)			1,160
Commercial Banking Solutions	3,044				2,608				3,169				3,097				1,995				436					1,049
Total loans	$	11,679			$	11,371			$	11,799			$	10,133			$	8,935			$	308				$	2,744

⁽¹⁾ Certain loans previously included in the Florida geographic market have been reclassified to Commercial Banking Solutions following Seaside’s core systems conversion in the first quarter of 2021.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

		2021				2020
(in thousands)		First Quarter				Fourth Quarter				Third Quarter
NONACCRUAL LOANS
Owner occupied RE		$	7,908			$	8,582			$	11,075
Income producing RE		13,740				15,149				12,230
Commercial & industrial		13,864				16,634				3,534
Commercial construction		1,984				1,745				1,863
Equipment financing		2,171				3,405				3,137
Total commercial		39,667				45,515				31,839
Residential mortgage		14,050				12,858				13,864
Home equity lines of credit		1,707				2,487				2,642
Residential construction		322				514				479
Consumer		154				225				260
Total		$	55,900			$	61,599			$	49,084

		2021									2020
		First Quarter									Fourth Quarter									Third 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 BY CATEGORY
Owner occupied RE		$	(240	)			(0.05	)	%		$	(277	)			(0.05	)	%		$	(725	)			(0.14	)	%
Income producing RE		991					0.16				(1,718		)			(0.27	)			1,785					0.29
Commercial & industrial		(2,753		)			(0.44	)			2,294					0.33				(105		)			(0.01	)
Commercial construction		22					0.01				(129		)			(0.05	)			(171		)			(0.07	)
Equipment financing		1,511					0.70				1,595					0.75				1,993					0.93
Total commercial		(469		)			(0.02	)			1,765					0.08				2,777					0.12
Residential mortgage		92					0.03				(25		)			(0.01	)			(35		)			(0.01	)
Home equity lines of credit		(73		)			(0.04	)			(151		)			(0.09	)			(125		)			(0.07	)
Residential construction		(60		)			(0.09	)			(47		)			(0.07	)			—					—
Consumer		205					0.58				(27		)			(0.07	)			(79		)			(0.22	)
Total		$	(305	)			(0.01	)			$	1,515				0.05				$	2,538				0.09
(1) Annualized.

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

(in thousands, except share and per share data)		March 31, 2021					December 31, 2020
ASSETS
Cash and due from banks		$	126,164				$	148,896
Interest-bearing deposits in banks		1,207,949					1,459,723
Cash and cash equivalents		1,334,113					1,608,619
Debt securities available-for-sale		3,744,280					3,224,721
Debt securities held-to-maturity (fair value $586,828 and $437,193)		587,696					420,361
Loans held for sale at fair value		164,979					105,433
Loans and leases held for investment		11,678,544					11,370,815
Less allowance for credit losses - loans and leases		(126,866		)			(137,010		)
Loans and leases, net		11,551,678					11,233,805
Premises and equipment, net		216,752					218,489
Bank owned life insurance		202,817					201,969
Accrued interest receivable		46,278					47,672
Net deferred tax asset		39,338					38,411
Derivative financial instruments		63,897					86,666
Goodwill and other intangible assets, net		380,838					381,823
Other assets		224,242					226,405
Total assets		$	18,556,908				$	17,794,374
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	6,058,439				$	5,390,291
NOW and interest-bearing demand		3,417,915					3,346,490
Money market		3,677,630					3,550,335
Savings		1,051,381					950,854
Time		1,587,653					1,704,290
Brokered		200,202					290,098
Total deposits		15,993,220					15,232,358
Long-term debt		311,591					326,956
Derivative financial instruments		33,455					29,003
Accrued expenses and other liabilities		187,558					198,527
Total liabilities		16,525,824					15,786,844
Shareholders' equity:
Preferred stock; $1 par value; 10,000,000 shares authorized; Series I, $25,000 per share liquidation preference; 4,000 shares issued and outstanding		96,422					96,422
Common stock, $1 par value; 150,000,000 shares authorized; 86,776,508 and 86,675,279 shares issued and outstanding		86,777					86,675
Common stock issuable; 565,904 and 600,834 shares		10,485					10,855
Capital surplus		1,640,583					1,638,999
Retained earnings		192,185					136,869
Accumulated other comprehensive income		4,632					37,710
Total shareholders' equity		2,031,084					2,007,530
Total liabilities and shareholders' equity		$	18,556,908				$	17,794,374

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

		Three Months Ended March 31,
(in thousands, except per share data)		2021					2020
Interest revenue:
Loans, including fees		$	125,726				$	118,063
Investment securities, including tax exempt of $2,150 and $1,523, respectively		15,448					17,394
Deposits in banks and short-term investments		368					1,090
Total interest revenue		141,542					136,547
Interest expense:
Deposits:
NOW and interest-bearing demand		1,486					2,978
Money market		1,804					4,531
Savings		49					35
Time		1,880					7,531
Deposits		5,219					15,075
Short-term borrowings		—					1
Federal Home Loan Bank advances		2					1
Long-term debt		4,257					2,864
Total interest expense		9,478					17,941
Net interest revenue		132,064					118,606
(Release of) provision for credit losses		(12,281		)			22,191
Net interest revenue after provision for credit losses		144,345					96,415
Noninterest income:
Service charges and fees		7,570					8,638
Mortgage loan gains and other related fees		22,572					8,310
Wealth management fees		3,505					1,640
Gains from sales of other loans, net		1,030					1,674
Other		10,028					5,552
Total noninterest income		44,705					25,814
Total revenue		189,050					122,229
Noninterest expenses:
Salaries and employee benefits		60,585					51,358
Communications and equipment		7,203					5,946
Occupancy		6,956					5,714
Advertising and public relations		1,199					1,274
Postage, printing and supplies		1,822					1,670
Professional fees		4,234					4,097
Lending and loan servicing expense		2,877					2,293
Outside services - electronic banking		2,218					1,832
FDIC assessments and other regulatory charges		1,896					1,484
Amortization of intangibles		985					1,040
Merger-related and other charges		1,543					808
Other		3,676					4,022
Total noninterest expenses		95,194					81,538
Net income before income taxes		93,856					40,691
Income tax expense		20,150					8,807
Net income		73,706					31,884
Preferred stock dividends		1,719					—
Undistributed earnings allocated to participating securities		462					243
Net income available to common shareholders		$	71,525				$	31,641
Net income per common share:
Basic		$	0.82				$	0.40
Diluted		0.82					0.40
Weighted average common shares outstanding:
Basic		87,322					79,340
Diluted		87,466					79,446

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
		2021												2020
(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)		$	11,432,908				$	125,122			4.44	%		$	8,828,880				$	117,796			5.37	%
Taxable securities (3)		3,686,405					13,298				1.44			2,357,635					15,871				2.69
Tax-exempt securities (FTE) (1)(3)		304,983					2,888				3.79			162,253					2,045				5.04
Federal funds sold and other interest-earning assets		1,357,890					1,222				0.36			448,775					1,632				1.46
Total interest-earning assets (FTE)		16,782,186					142,530				3.44			11,797,543					137,344				4.68
Noninterest-earning assets:
Allowance for credit losses		(143,703		)										(69,777		)
Cash and due from banks		140,292												128,254
Premises and equipment		221,411												219,243
Other assets (3)		1,023,275												868,452
Total assets		$	18,023,461											$	12,943,715
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	3,331,043				1,486				0.18			$	2,412,733				2,978				0.50
Money market		3,732,988					1,804				0.20			2,340,723					4,531				0.78
Savings		989,584					49				0.02			712,110					35				0.02
Time		1,642,423					1,588				0.39			1,841,552					7,250				1.58
Brokered time deposits		75,259					292				1.57			80,821					281				1.40
Total interest-bearing deposits		9,771,297					5,219				0.22			7,387,939					15,075				0.82
Federal funds purchased and other borrowings		12					—				—			396					1				1.02
Federal Home Loan Bank advances		3,333					2				0.24			165					1				2.44
Long-term debt		317,172					4,257				5.44			212,762					2,864				5.41
Total borrowed funds		320,517					4,259				5.39			213,323					2,866				5.40
Total interest-bearing liabilities		10,091,814					9,478				0.38			7,601,262					17,941				0.95
Noninterest-bearing liabilities:
Noninterest-bearing deposits		5,594,394												3,527,385
Other liabilities		312,610												162,187
Total liabilities		15,998,818												11,290,834
Shareholders' equity		2,024,643												1,652,881
Total liabilities and shareholders' equity		$	18,023,461											$	12,943,715
Net interest revenue (FTE)							$	133,052											$	119,403
Net interest-rate spread (FTE)											3.06	%											3.73	%
Net interest margin (FTE) (4)											3.22	%											4.07	%

(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 26%, 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)	Securities available for sale are shown at amortized cost. Pretax unrealized gains of $58.3 million and $52.9 million in 2021 and 2020, respectively, 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) (United) provides a full range of banking, wealth management and mortgage services for relationship oriented consumers and business owners. The company, known as “The Bank That Service Built” has been recognized by JD Power, Forbes, and CSP for having outstanding customer service ratings for many years. United has $18.6 billion in assets and 161 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. United was also named "Best Banks to Work For" by American Banker in 2020 for the fourth year in a row based on employee satisfaction. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. United also received five Greenwich Excellence Awards in 2020 for excellence in Small Business Banking, including a national award for Overall Satisfaction. 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 “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, excluding merger-related and other charges,” “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.

For more information:

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