Press Release Details

Strong Core Profitability Driven by Net Interest Margin Expansion and Loan Growth of 6.3%

GREENVILLE, S.C., July 19, 2022 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced net income for the second quarter of $66.8 million and pre-tax, pre-provision income of $91.6 million. Diluted earnings per share of $0.61 for the quarter represented an increase of $0.18 or 42% from the first quarter of 2022 and a decrease of $0.17 or 22%, from the second quarter of 2021. The year-over-year decrease is largely attributable to a $13.6 million provision release in the second quarter of 2021 compared to a $5.6 million provision expense in the second quarter of 2022. Quarter highlights include 6.3% annualized loan growth, 22 basis points of net interest margin expansion, a modest reserve build to 1.05% of loans and an improvement in the efficiency ratio to 56.6%, or 53.2% on an operating basis, which excludes the effect of merger-related and other charges.

United’s second quarter return on assets (ROA) was 1.08% and return on common equity was 9.31%. On an operating basis, United’s ROA was 1.17% and its return on tangible common equity was 14.20%. Excluding merger-related and other charges United’s pre-tax, pre-provision ROA was 1.60% for the quarter.

Total loans increased by $225 million during the quarter. Excluding the effect of PPP, core organic loan growth was 7.0% annualized. Deposits decreased by $183 million or 0.9%. United’s cost of deposits was up only 2 basis points to 0.08% while the average yield on interest-earning assets was up 24 basis points to 3.34%.

Chairman and CEO Lynn Harton stated, “We are pleased to report another quarter of strong core performance. We had solid organic loan growth, which was within our expected long-term range for growth. Asset quality remained exceptional.” Harton continued, “From a strategic perspective, we are excited about our merger agreement with Progress Financial Corporation. We are confident that Progress and United will be a great cultural fit. David Nast and his team have built an outstanding organization focused on dynamic growth markets in Alabama and the Florida Panhandle.”

He further stated, “Sadly, we also are grieving the passing of DeVan Ard. DeVan founded Reliant Bank in 2006, and due to his capable leadership and his team of talented bankers, Reliant received many accolades and was recognized as one of the top places to work and a top performing community bank. Those accomplishments, along with much more, are a tribute to an exceptional career and a life well lived. DeVan was an incredible partner and we were fortunate to have him as part of the United team. He put his all into making our partnership successful and we could not be more appreciative. We will miss him greatly. John Wilson, Reliant’s President, will now step into the role as our Tennessee State President. John has been instrumental during our integration process and will be an outstanding leader going forward.”

Harton concluded, “We remain very positive about United’s performance during the second half of 2022. We continue to see strong pipelines for business growth across our markets. We also have a high-quality balance sheet and business mix that we believe will support strong performance regardless of future economic conditions.”

Second Quarter 2022 Financial Highlights:

• Net income of $66.8 million and pre-tax, pre-provision income of $91.6 million
• EPS decreased by 22% compared to last year on a GAAP basis and 16% on an operating basis; compared to first quarter 2022, EPS increased 42% on a GAAP basis and 32% on an operating basis
• Return on assets of 1.08%, or 1.17% on an operating basis
• Pre-tax, pre-provision return on assets of 1.49%, or 1.60% when excluding merger-related and other charges
• Return on common equity of 9.31%
• Return on tangible common equity of 14.20% on an operating basis
• A provision for credit losses of $5.6 million, which increased the allowance for credit losses to 1.05% of loans from 1.02% in the first quarter
• Net recoveries of $1.1 million, or 0.03 basis points of average loans
• Loan production of $1.5 billion, resulting in annualized core loan growth, excluding the impact of PPP, of 7.0%, for the quarter
• Core transaction deposits were down $156.2 million or 0.9% for the quarter
• Net interest income increased by $15.1 million, or 9.2%, on a linked quarter basis as solid loan growth and a positive mix change combined with a wider net interest margin
• Net interest margin of 3.19% was up 22 basis points from the first quarter, mainly due to increasing interest rates
• Mortgage closings of $498.5 million and mortgage rate locks of $597.3 million, compared to $679.9 million and $701.7 million, respectively, for the same quarter a year ago
• Noninterest income was down $5.5 million on a linked quarter basis, primarily driven by a $4.3 million less of a positive MSR valuation in the second quarter as compared to the first; specifically, there was a $2.1 million increase in the MSR valuation in the second quarter compared with a $6.4 million increase in the first quarter
• Noninterest expenses increased by $1.5 million compared to the first quarter, as compensation merit increases were partially offset by Reliant cost savings
• Efficiency ratio of 56.6%, or 53.2% on an operating basis
• Nonperforming assets of 0.14% of total assets, a decrease of 3 basis points from March 31, 2022
• Quarterly common shareholder dividend of $0.21 per share declared during the quarter, an increase of 11% year-over-year

Conference Call

United will hold a conference call on Wednesday, July 20, 2022, 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/10168643/f383a3dcd2. Those without internet access or who are 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 available for replay by selecting “Events and Presentations” under ”News and Events” within the Investor Relations section of United’s website at www.ucbi.com.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
			2022								2021											Second Quarter 2022 - 2021 Change			For the Six Months Ended June 30,								YTD 2022 - 2021 Change
		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter								2022				2021
INCOME SUMMARY
Interest revenue		$	187,378			$	171,059			$	143,768			$	147,675			$	145,809						$	358,437			$	287,351
Interest expense			8,475				7,267				6,213				6,636				7,433							15,742				16,911
Net interest revenue			178,903				163,792				137,555				141,039				138,376			29	%			342,695				270,440			27	%
Provision for (release of) credit losses			5,604				23,086				(647	)			(11,034	)			(13,588	)						28,690				(25,869	)
Noninterest income			33,458				38,973				37,177				40,095				35,841			(7	)			72,431				80,546			(10	)
Total revenue			206,757				179,679				175,379				192,168				187,805			10				386,436				376,855			3
Noninterest expenses			120,790				119,275				109,156				96,749				95,540			26				240,065				190,734			26
Income before income tax expense			85,967				60,404				66,223				95,419				92,265			(7	)			146,371				186,121			(21	)
Income tax expense			19,125				12,385				14,204				21,603				22,005			(13	)			31,510				42,155			(25	)
Net income			66,842				48,019				52,019				73,816				70,260			(5	)			114,861				143,966			(20	)
Merger-related and other charges			7,143				9,016				9,912				1,437				1,078							16,159				2,621
Income tax benefit of merger-related and other charges			(1,575	)			(1,963	)			(2,265	)			(328	)			(246	)						(3,538	)			(581	)
Net income - operating (1)		$	72,410			$	55,072			$	59,666			$	74,925			$	71,092			2			$	127,482			$	146,006			(13	)
Pre-tax pre-provision income (5)		$	91,571			$	83,490			$	65,576			$	84,385			$	78,677			16			$	175,061			$	160,252			9
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.61			$	0.43			$	0.55			$	0.82			$	0.78			(22	)		$	1.04			$	1.60			(35	)
Diluted net income - operating (1)			0.66				0.50				0.64				0.83				0.79			(16	)			1.16				1.62			(28	)
Cash dividends declared			0.21				0.21				0.20				0.20				0.19			11				0.42				0.38			11
Book value			23.96				24.38				23.63				23.25				22.81			5				23.96				22.81			5
Tangible book value (3)			16.68				17.08				18.42				18.68				18.49			(10	)			16.68				18.49			(10	)
Key performance ratios:
Return on common equity - GAAP (2)(4)			9.31	%			6.80	%			9.32	%			14.26	%			14.08	%						8.07	%			14.71	%
Return on common equity - operating (1)(2)(4)			10.10				7.83				10.74				14.48				14.25							8.98				14.92
Return on tangible common equity - operating (1)(2)(3)(4)			14.20				11.00				13.93				18.23				17.81							12.62				18.72
Return on assets - GAAP (4)			1.08				0.78				0.96				1.48				1.46							0.93				1.54
Return on assets - operating (1)(4)			1.17				0.89				1.10				1.50				1.48							1.03				1.56
Return on assets - pre-tax pre-provision (4)(5)			1.49				1.37				1.21				1.70				1.64							1.43				1.72
Return on assets - pre-tax pre-provision, excluding merger- related and other charges (1)(4)(5)			1.60				1.52				1.40				1.73				1.67							1.56				1.75
Net interest margin (fully taxable equivalent) (4)			3.19				2.97				2.81				3.12				3.19							3.08				3.20
Efficiency ratio - GAAP			56.58				57.43				62.12				53.11				54.53							57.00				54.04
Efficiency ratio - operating (1)			53.23				53.09				56.48				52.33				53.92							53.16				53.30
Equity to total assets			10.95				11.06				10.61				10.89				11.04							10.95				11.04
Tangible common equity to tangible assets (3)			7.59				7.72				8.09				8.53				8.71							7.59				8.71
ASSET QUALITY
Nonperforming assets ("NPAs")		$	34,428			$	40,816			$	32,855			$	45,335			$	46,347			(26	)		$	34,428			$	46,347			(26	)
Allowance for credit losses - loans			136,925				132,805				102,532				99,620				111,616			23				136,925				111,616			23
Allowance for credit losses - total			153,042				146,369				113,524				110,875				122,460							153,042				122,460
Net charge-offs (recoveries)			(1,069	)			2,978				248				551				(456	)						1,909				(761	)
Allowance for credit losses - loans to loans			0.94	%			0.93	%			0.87	%			0.89	%			0.98	%						0.94	%			0.98	%
Allowance for credit losses - total to loans			1.05				1.02				0.97				0.99				1.08							1.05				1.08
Net charge-offs to average loans (4)			(0.03	)			0.08				0.01				0.02				(0.02	)						0.03				(0.01	)
NPAs to total assets			0.14				0.17				0.16				0.23				0.25							0.14				0.25
AT PERIOD END ($ in millions)
Loans		$	14,541			$	14,316			$	11,760			$	11,191			$	11,391			28			$	14,541			$	11,391			28
Investment securities			6,683				6,410				5,653				5,335				4,928			36				6,683				4,928			36
Total assets			24,213				24,374				20,947				19,481				18,896			28				24,213				18,896			28
Deposits			20,873				21,056				18,241				16,865				16,328			28				20,873				16,328			28
Shareholders’ equity			2,651				2,695				2,222				2,122				2,086			27				2,651				2,086			27
Common shares outstanding (thousands)			106,034				106,025				89,350				86,559				86,665			22				106,034				86,665			22

⁽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
(in thousands, except per share data)
			2022								2021											For the Six Months Ended June 30,
		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter					2022				2021
Noninterest expense reconciliation
Noninterest expenses (GAAP)		$	120,790			$	119,275			$	109,156			$	96,749			$	95,540			$	240,065			$	190,734
Merger-related and other charges			(7,143	)			(9,016	)			(9,912	)			(1,437	)			(1,078	)			(16,159	)			(2,621	)
Noninterest expenses - operating		$	113,647			$	110,259			$	99,244			$	95,312			$	94,462			$	223,906			$	188,113
Net income reconciliation
Net income (GAAP)		$	66,842			$	48,019			$	52,019			$	73,816			$	70,260			$	114,861			$	143,966
Merger-related and other charges			7,143				9,016				9,912				1,437				1,078				16,159				2,621
Income tax benefit of merger-related and other charges			(1,575	)			(1,963	)			(2,265	)			(328	)			(246	)			(3,538	)			(581	)
Net income - operating		$	72,410			$	55,072			$	59,666			$	74,925			$	71,092			$	127,482			$	146,006
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)		$	66,842			$	48,019			$	52,019			$	73,816			$	70,260			$	114,861			$	143,966
Income tax expense			19,125				12,385				14,204				21,603				22,005				31,510				42,155
Provision for (release of) credit losses			5,604				23,086				(647	)			(11,034	)			(13,588	)			28,690				(25,869	)
Pre-tax pre-provision income		$	91,571			$	83,490			$	65,576			$	84,385			$	78,677			$	175,061			$	160,252
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.61			$	0.43			$	0.55			$	0.82			$	0.78			$	1.04			$	1.60
Merger-related and other charges, net of tax			0.05				0.07				0.09				0.01				0.01				0.12				0.02
Diluted income per common share - operating		$	0.66			$	0.50			$	0.64			$	0.83			$	0.79			$	1.16			$	1.62
Book value per common share reconciliation
Book value per common share (GAAP)		$	23.96			$	24.38			$	23.63			$	23.25			$	22.81			$	23.96			$	22.81
Effect of goodwill and other intangibles			(7.28	)			(7.30	)			(5.21	)			(4.57	)			(4.32	)			(7.28	)			(4.32	)
Tangible book value per common share		$	16.68			$	17.08			$	18.42			$	18.68			$	18.49			$	16.68			$	18.49
Return on tangible common equity reconciliation
Return on common equity (GAAP)			9.31	%			6.80	%			9.32	%			14.26	%			14.08	%			8.07	%			14.71	%
Merger-related and other charges, net of tax			0.79				1.03				1.42				0.22				0.17				0.91				0.21
Return on common equity - operating			10.10				7.83				10.74				14.48				14.25				8.98				14.92
Effect of goodwill and other intangibles			4.10				3.17				3.19				3.75				3.56				3.64				3.80
Return on tangible common equity - operating			14.20	%			11.00	%			13.93	%			18.23	%			17.81	%			12.62	%			18.72	%
Return on assets reconciliation
Return on assets (GAAP)			1.08	%			0.78	%			0.96	%			1.48	%			1.46	%			0.93	%			1.54	%
Merger-related and other charges, net of tax			0.09				0.11				0.14				0.02				0.02				0.10				0.02
Return on assets - operating			1.17	%			0.89	%			1.10	%			1.50	%			1.48	%			1.03	%			1.56	%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)			1.08	%			0.78	%			0.96	%			1.48	%			1.46	%			0.93	%			1.54	%
Income tax expense			0.32				0.20				0.26				0.45				0.47				0.26				0.46
(Release of) provision for credit losses			0.09				0.39				(0.01	)			(0.23	)			(0.29	)			0.24				(0.28	)
Return on assets - pre-tax, pre-provision			1.49				1.37				1.21				1.70				1.64				1.43				1.72
Merger-related and other charges			0.11				0.15				0.19				0.03				0.03				0.13				0.03
Return on assets - pre-tax pre-provision, excluding merger-related and other charges			1.60	%			1.52	%			1.40	%			1.73	%			1.67	%			1.56	%			1.75	%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)			56.58	%			57.43	%			62.12	%			53.11	%			54.53	%			57.00	%			54.04	%
Merger-related and other charges			(3.35	)			(4.34	)			(5.64	)			(0.78	)			(0.61	)			(3.84	)			(0.74	)
Efficiency ratio - operating			53.23	%			53.09	%			56.48	%			52.33	%			53.92	%			53.16	%			53.30	%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)			10.95	%			11.06	%			10.61	%			10.89	%			11.04	%			10.95	%			11.04	%
Effect of goodwill and other intangibles			(2.96	)			(2.94	)			(2.06	)			(1.87	)			(1.82	)			(2.96	)			(1.82	)
Effect of preferred equity			(0.40	)			(0.40	)			(0.46	)			(0.49	)			(0.51	)			(0.40	)			(0.51	)
Tangible common equity to tangible assets			7.59	%			7.72	%			8.09	%			8.53	%			8.71	%			7.59	%			8.71	%
Allowance for credit losses - total to loans reconciliation
Allowance for credit losses - total to loans (GAAP)			1.05	%			1.02	%			0.97	%			0.99	%			1.08	%			1.05	%			1.08	%
Effect of PPP loans			—				—				—				0.01				0.04				—				0.04
Allowance for credit losses - total to loans, excluding PPP loans			1.05	%			1.02	%			0.97	%			1.00	%			1.12	%			1.05	%			1.12	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
		2022						2021								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	$	2,681		$	2,638		$	2,322		$	2,149		$	2,149		$	43			$	532
Income producing commercial RE		3,273			3,328			2,601			2,542			2,550			(55	)			723
Commercial & industrial		2,243			2,302			1,822			1,729			1,762			(59	)			481
Paycheck protection program		10			34			88			150			472			(24	)			(462	)
Commercial construction		1,514			1,482			1,015			947			927			32				587
Equipment financing		1,211			1,148			1,083			1,017			969			63				242
Total commercial		10,932			10,932			8,931			8,534			8,829			—				2,103
Residential mortgage		1,997			1,826			1,638			1,533			1,473			171				524
Home equity lines of credit		801			778			694			661			661			23				140
Residential construction		381			368			359			321			289			13				92
Manufactured housing		287			269			—			—			—			18				287
Consumer		143			143			138			142			139			—				4
Total loans	$	14,541		$	14,316		$	11,760		$	11,191		$	11,391		$	225			$	3,150
LOANS BY MARKET
Georgia	$	3,960		$	3,879		$	3,778		$	3,732		$	3,729		$	81			$	231
South Carolina		2,377			2,323			2,235			2,145			2,107			54				270
North Carolina		2,006			1,879			1,895			1,427			1,374			127				632
Tennessee		2,621			2,661			373			383			394			(40	)			2,227
Florida		1,235			1,208			1,148			1,113			1,141			27				94
Commercial Banking Solutions		2,342			2,366			2,331			2,391			2,646			(24	)			(304	)
Total loans	$	14,541		$	14,316		$	11,760		$	11,191		$	11,391		$	225			$	3,150

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
		2022						2021
		Second Quarter			First Quarter			Fourth Quarter
NONACCRUAL LOANS
Owner occupied RE		$	1,876		$	4,590		$	2,714
Income producing RE			7,074			7,220			7,588
Commercial & industrial			4,548			6,227			5,429
Commercial construction			208			401			343
Equipment financing			3,249			2,540			1,741
Total commercial			16,955			20,978			17,815
Residential mortgage			12,228			13,024			13,313
Home equity lines of credit			933			1,183			1,212
Residential construction			198			212			420
Manufactured housing			2,804			2,507			—
Consumer			25			40			52
Total nonaccrual loans held for investment			33,143			37,944			32,812
Nonaccrual loans held for sale			317			2,033			—
OREO and repossessed assets			968			839			43
Total NPAs		$	34,428		$	40,816		$	32,855

			2022														2021
		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 BY CATEGORY
Owner occupied RE		$	(1,496	)		(0.23	)%		$	(45	)		(0.01	)%		$	(255	)		(0.04	)%
Income producing RE			(116	)		(0.01	)			(290	)		(0.04	)			(98	)		(0.01	)
Commercial & industrial			(302	)		(0.05	)			2,929			0.51				339			0.07
Commercial construction			(144	)		(0.04	)			(373	)		(0.10	)			(354	)		(0.14	)
Equipment financing			907			0.31				267			0.10				781			0.29
Total commercial			(1,151	)		(0.04	)			2,488			0.09				413			0.02
Residential mortgage			(51	)		(0.01	)			(97	)		(0.02	)			(169	)		(0.04	)
Home equity lines of credit			(346	)		(0.18	)			(81	)		(0.04	)			(118	)		(0.07	)
Residential construction			(76	)		(0.08	)			(23	)		(0.03	)			(17	)		(0.02	)
Manufactured housing			135			0.20				164			0.25				—			—
Consumer			420			1.18				527			1.48				139			0.39
Total		$	(1,069	)		(0.03	)		$	2,978			0.08			$	248			0.01
(1)Annualized.

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

(in thousands, except share and per share data)		June 30, 2022				December 31, 2021
ASSETS
Cash and due from banks		$	238,310			$	144,244
Interest-bearing deposits in banks			977,397				2,147,266
Federal funds and other short-term investments			—				27,000
Cash and cash equivalents			1,215,707				2,318,510
Debt securities available-for-sale			3,960,285				4,496,824
Debt securities held-to-maturity (fair value $2,431,138 and $1,148,804, respectively)			2,722,475				1,156,098
Loans held for sale			40,678				44,109
Loans and leases held for investment			14,541,230				11,760,346
Less allowance for credit losses - loans and leases			(136,925	)			(102,532	)
Loans and leases, net			14,404,305				11,657,814
Premises and equipment, net			286,248				245,296
Bank owned life insurance			299,104				217,713
Goodwill and other intangible assets, net			782,544				472,407
Other assets			501,662				338,000
Total assets		$	24,213,008			$	20,946,771
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	8,155,494			$	6,956,981
NOW and interest-bearing demand			4,543,722				4,252,209
Money market			4,839,565				4,183,354
Savings			1,513,656				1,215,779
Time			1,654,704				1,442,498
Brokered			165,942				190,358
Total deposits			20,873,083				18,241,179
Long-term debt			324,371				247,360
Accrued expenses and other liabilities			364,266				235,987
Total liabilities			21,561,720				18,724,526
Shareholders' equity:
Preferred stock; $1 par value; 10,000,000 shares authorized;   4,000 shares Series I issued and outstanding, $25,000 per share   liquidation preference			96,422				96,422
Common stock, $1 par value; 200,000,000 shares authorized,  106,033,960 and 89,349,826 shares issued and outstanding,   respectively			106,034				89,350
Common stock issuable; 578,251 and 595,705 shares, respectively			11,448				11,288
Capital surplus			2,304,608				1,721,007
Retained earnings			396,970				330,654
Accumulated other comprehensive loss			(264,194	)			(26,476	)
Total shareholders' equity			2,651,288				2,222,245
Total liabilities and shareholders' equity		$	24,213,008			$	20,946,771

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)		2022				2021				2022			2021
Interest revenue:
Loans, including fees		$	155,266		$	128,058			$	302,007			$	253,784
Investment securities, including tax exempt of $2,539, $2,255, $5,194 and $4,405, respectively			30,425			17,542				54,090				32,990
Deposits in banks and short-term investments			1,687			209				2,340				577
Total interest revenue			187,378			145,809				358,437				287,351
Interest expense:
Deposits:
NOW and interest-bearing demand			2,163			1,382				3,632				2,868
Money market			1,515			1,355				2,527				3,159
Savings			87			53				159				102
Time			537			830				1,115				2,710
Deposits			4,302			3,620				7,433				8,839
Short-term borrowings			—			—				—				2
Long-term debt			4,173			3,813				8,309				8,070
Total interest expense			8,475			7,433				15,742				16,911
Net interest revenue			178,903			138,376				342,695				270,440
Provision for (release of) credit losses			5,604			(13,588	)			28,690				(25,869	)
Net interest revenue after provision for credit losses			173,299			151,964				314,005				296,309
Noninterest income:
Service charges and fees			10,005			8,335				19,075				15,905
Mortgage loan gains and other related fees			6,971			11,136				23,123				33,708
Wealth management fees			5,985			3,822				11,880				7,327
Gains from sales of other loans, net			3,800			4,123				6,998				5,153
Lending and loan servicing fees			1,586			2,085				4,572				4,245
Securities gains (losses), net			46			41				(3,688	)			41
Other			5,065			6,299				10,471				14,167
Total noninterest income			33,458			35,841				72,431				80,546
Total revenue			206,757			187,805				386,436				376,855
Noninterest expenses:
Salaries and employee benefits			69,233			59,414				140,239				119,999
Communications and equipment			9,675			7,408				18,923				14,611
Occupancy			8,865			7,078				18,243				14,034
Advertising and public relations			2,300			1,493				3,788				2,692
Postage, printing and supplies			1,999			1,618				4,118				3,440
Professional fees			5,402			4,928				9,849				9,162
Lending and loan servicing expense			3,047			3,181				5,413				6,058
Outside services - electronic banking			2,947			2,285				5,470				4,503
FDIC assessments and other regulatory charges			2,267			1,901				4,440				3,797
Amortization of intangibles			1,736			929				3,529				1,914
Merger-related and other charges			7,143			1,078				16,159				2,621
Other			6,176			4,227				9,894				7,903
Total noninterest expenses			120,790			95,540				240,065				190,734
Income before income taxes			85,967			92,265				146,371				186,121
Income tax expense			19,125			22,005				31,510				42,155
Net income			66,842			70,260				114,861				143,966
Preferred stock dividends			1,719			1,719				3,438				3,438
Earnings allocated to participating securities			362			432				596				894
Net income available to common shareholders		$	64,761		$	68,109			$	110,827			$	139,634
Net income per common share:
Basic		$	0.61		$	0.78			$	1.04			$	1.60
Diluted			0.61			0.78				1.04				1.60
Weighted average common shares outstanding:
Basic			106,610			87,289				106,580				87,306
Diluted			106,716			87,421				106,697				87,443

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
			2022										2021
(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)		$	14,382,324			$	155,184		4.33	%		$	11,616,802			$	127,458			4.40	%
Taxable securities(3)			6,436,992				27,886		1.73				4,242,297				15,287			1.44
Tax-exempt securities (FTE)(1)(3)			490,659				3,410		2.78				388,609				3,030			3.12
Federal funds sold and other interest-earning assets			1,302,935				2,066		0.64				1,292,026				1,055			0.33
Total interest-earning assets (FTE)			22,612,910				188,546		3.34				17,539,734				146,830			3.36
Noninterest-earning assets:
Allowance for credit losses			(135,392	)									(128,073	)
Cash and due from banks			203,291										152,443
Premises and equipment			286,417										225,017
Other assets(3)			1,286,107										1,002,634
Total assets		$	24,253,333									$	18,791,755
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	4,561,162				2,163		0.19			$	3,428,009				1,382			0.16
Money market			5,019,420				1,515		0.12				3,814,960				1,355			0.14
Savings			1,496,414				87		0.02				1,080,267				53			0.02
Time			1,671,632				491		0.12				1,548,487				899			0.23
Brokered time deposits			65,081				46		0.28				64,332				(69	)		(0.43	)
Total interest-bearing deposits			12,813,709				4,302		0.13				9,936,055				3,620			0.15
Federal funds purchased and other borrowings			66				—		—				111				—			—
Federal Home Loan Bank advances			—				—		—				—				—			—
Long-term debt			324,301				4,173		5.16				285,389				3,813			5.36
Total borrowed funds			324,367				4,173		5.16				285,500				3,813			5.36
Total interest-bearing liabilities			13,138,076				8,475		0.26				10,221,555				7,433			0.29
Noninterest-bearing liabilities:
Noninterest-bearing deposits			8,025,947										6,196,045
Other liabilities			397,890										314,130
Total liabilities			21,561,913										16,731,730
Shareholders' equity			2,691,420										2,060,025
Total liabilities and shareholders' equity		$	24,253,333									$	18,791,755
Net interest revenue (FTE)						$	180,071									$	139,397
Net interest-rate spread (FTE)									3.08	%										3.07	%
Net interest margin (FTE)(4)									3.19	%										3.19	%

⁽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⁾   Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $271 million in 2022 and pretax unrealized gains of $28.6 million in 2021 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,
			2022										2021
(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)		$	14,308,585			$	301,821		4.25	%		$	11,525,363			$	252,580		4.42	%
Taxable securities(3)			6,142,723				48,896		1.59				3,932,545				28,585		1.45
Tax-exempt securities (FTE)(1)(3)			500,750				6,976		2.79				380,370				5,918		3.11
Federal funds sold and other interest-earning assets			1,604,995				3,086		0.39				1,324,776				2,277		0.34
Total interest-earning assets (FTE)			22,557,053				360,779		3.22				17,163,054				289,360		3.40
Non-interest-earning assets:
Allowance for loan losses			(124,384	)									(135,845	)
Cash and due from banks			184,751										146,401
Premises and equipment			281,842										223,224
Other assets(3)			1,329,359										1,012,896
Total assets		$	24,228,621									$	18,409,730
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	4,613,838				3,632		0.16			$	3,379,794				2,868		0.17
Money market			5,064,866				2,527		0.10				3,774,201				3,159		0.17
Savings			1,466,812				159		0.02				1,035,176				102		0.02
Time			1,715,022				1,025		0.12				1,595,196				2,487		0.31
Brokered time deposits			72,048				90		0.25				69,765				223		0.64
Total interest-bearing deposits			12,932,586				7,433		0.12				9,854,132				8,839		0.18
Federal funds purchased and other borrowings			337				—		—				62				—		—
Federal Home Loan Bank advances			—				—		—				1,657				2		0.24
Long-term debt			321,663				8,309		5.21				301,193				8,070		5.40
Total borrowed funds			322,000				8,309		5.20				302,912				8,072		5.37
Total interest-bearing liabilities			13,254,586				15,742		0.24				10,157,044				16,911		0.34
Noninterest-bearing liabilities:
Noninterest-bearing deposits			7,847,284										5,896,882
Other liabilities			388,162										313,374
Total liabilities			21,490,032										16,367,300
Shareholders' equity			2,738,589										2,042,430
Total liabilities and shareholders' equity		$	24,228,621									$	18,409,730
Net interest revenue (FTE)						$	345,037									$	272,449
Net interest-rate spread (FTE)									2.98	%									3.06	%
Net interest margin (FTE)(4)									3.08	%									3.20	%

⁽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⁾   Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $175 million in 2022 and pretax unrealized gains of $43.4 million in 2021, 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. (NASDAQGS: UCBI) provides a full range of banking, wealth management and mortgage services for relationship-oriented consumers and business owners. As of June 30, 2022, United had $24.2 billion in assets and 195 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee, along with a national SBA lending franchise and a national equipment lending subsidiary. The company, known as “The Bank That SERVICE Built,” has been recognized nationally for delivering award-winning service. In 2022, J.D. Power ranked United highest in customer satisfaction with consumer banking in the Southeast, marking eight out of the last nine years United earned the coveted award. Forbes recognized United as one of the top ten World’s Best Banks in 2022. Forbes also included United on its 2022 list of the 100 Best Banks in America for the ninth consecutive year. United also received ten Greenwich Excellence Awards in 2021 for excellence in Small Business Banking and Middle Market Banking, including national awards for Overall Satisfaction and Likelihood to Recommend. United was also named one of the "Best Banks to Work For" by American Banker in 2021 for the fifth consecutive year based on employee 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.

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, and include statements related to potential benefits of the Progress merger, and the strength of our pipelines and their ability to support for business growth across our markets and our belief that our high-quality balance sheet and business mix will support strong performance regardless of future economic conditions. 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 (1) the risk that the cost savings and any revenue synergies from the Progress acquisition may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of the Progress acquisition, (3) the occurrence of any event, change or other circumstances that could give rise to a delay in closing the Progress acquisition or the termination of the merger agreement, (4) the failure to obtain the necessary approval by the shareholders of Progress, (5) the possibility that the costs, fees, expenses and charges related to the acquisition of Progress may be greater than anticipated, (6) the ability of United to obtain required governmental approvals of the Progress acquisition, (7) reputational risk and the reaction of the companies’ customers, suppliers, employees or other business partners to the acquisition of Progress, (8) the failure of the closing conditions in the Progress merger agreement to be satisfied, or any unexpected delay in closing the acquisition, (9) the risks relating to the integration of Progress’ operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (10) the risk of potential litigation or regulatory action related to the acquisition of Progress, (11) the risks associated with United’s pursuit of future acquisitions, (12) the risk of expansion into new geographic or product markets, (13) the dilution caused by United’s issuance of additional shares of its common stock in the acquisition of Progress, and (14) 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, 2021, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

Many of these factors are beyond United’s (and in the case of the prospective acquisition of Progress, Progress’) 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 or Progress to predict their occurrence or how they will affect United or Progress.

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

Important Information for Shareholders and Investors

In connection with the prospective acquisition of Progress, United has filed with the SEC a registration statement on Form S-4 that includes a proxy statement of Progress to be sent to Progress’ shareholders seeking their approval of the merger agreement and merger with United. The registration statement also contains the prospectus of United to register the shares of United common stock to be issued in connection with the Progress acquisition. INVESTORS AND SHAREHOLDERS OF PROGRESS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT, INCLUDING THE PROXY STATEMENT/PROSPECTUS IS A PART OF THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED BY UNITED OR PROGRESS WITH THE SEC, INCLUDING ANY AMENDMENTS OR SUPPLEMENTS TO THE REGISTRATION STATEMENT AND THOSE OTHER DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT UNITED, PROGRESS AND THE MERGER OF PROGRESS AND UNITED.

The registration statement and other documents filed with the SEC may be obtained for free at the SEC’s website (www.sec.gov). You will also be able to obtain these documents, free of charge, from United at the “Investor Relations” section of United’s website at www.ucbi.com or from Progress at the “Investor Relations” section of Progress’ website at www.myprogressbank.com. Copies of the definitive proxy statement/prospectus will also be made available, free of charge, by contacting United Community Banks, Inc., P.O. Box 398, Blairsville, GA 30514, Attn: Jefferson Harralson, Telephone: (864) 240-6208, or Progress Financial Corp., 201 Williams Avenue, Huntsville, AL 35801, Attn: Dabsey Maxwell, Telephone: (256) 319-3641.

This communication is for informational purposes only and does not constitute an offer to sell, the solicitation of an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This communication is also not a solicitation of any vote or approval with respect to the proposed merger of Progress with United or otherwise.

Participants in the Transaction

United and Progress, and certain of their respective directors and executive officers, under the rules of the SEC may be deemed to be participants in the solicitation of proxies from Progress’ shareholders in favor of the approval of the merger agreement and the merger of Progress and United. Information about the directors and officers of United and their ownership of United common stock can be found in United’s definitive proxy statement in connection with its 2022 annual meeting of shareholders, as filed with the SEC on April 6, 2022, and other documents subsequently filed by United with the SEC. Information about the directors and executive officers of Progress and their ownership of Progress’ capital stock, as well as information regarding the interests of other persons who may be deemed participants in the transaction, may be obtained by reading the proxy statement/prospectus regarding the Merger with. Additional information regarding the interests of these participants will also be included in the proxy statement/prospectus pertaining to the Merger. Free copies of this document may be obtained as described above.

For more information:

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