SEC Filing | United Community Banks, Inc.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 22, 2019

UNITED COMMUNITY BANKS, INC.

(Exact name of registrant as specified in its charter)



Georgia	001-35095	58-1807304
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS Employer Identification No.)

125 Highway 515 East

Blairsville, Georgia 30512

(Address of principal executive offices)

Registrant’s telephone number, including area code:

(706) 781-2265

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, par value $1 per share	UCBI	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02	Results of Operations and Financial Condition.
	On October 22, 2019, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the third quarter of 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01	Regulation FD Disclosure.
	On October 23, 2019, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the third quarter of 2019. The press release referenced above in Item 2.02 contains information about how to access the conference call and webcast. A copy of the slide presentation to be used during the earnings call and webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation also will be available on our website, www.ucbi.com, under the “Investor Relations – Events and Presentations” section.

Item 9.01	Financial Statements and Exhibits.

(d) Exhibits	The following exhibit index lists the exhibits that are either filed or furnished with the Current Report on Form 8-K.



	EXHIBIT INDEX



Exhibit No.	Description

99.1	United Community Banks, Inc. Press Release, dated October 22, 2019.

99.2	Slide Presentation.

104	The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	UNITED COMMUNITY BANKS, INC.


	By:	/s/ Jefferson L. Harralson
		Jefferson L. Harralson
		Executive Vice President and
		Chief Financial Officer

Date: October 22, 2019

Exhibit

https://cdn.kscope.io/52a426915fdce3758cbbca63698c0d99-ucbilogoea.jpg

For Immediate Release

For more information:

Jefferson Harralson

Chief Financial Officer

(864) 240-6208

Jefferson_Harralson@ucbi.com

United Community Banks, Inc. reports Third Quarter Results

EPS of $0.60 and ROA of 1.51%; Operating ROA reaches 1.58%

GREENVILLE, SC - October 22, 2019

United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported strong third quarter financial results, including solid year-over-year loan and deposit growth, record operating efficiency and strong asset quality. Diluted earnings per share were $0.60, an increase of $0.06 or 11% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.63, up 15% over last year. United’s return on assets (“ROA”) was 1.51% and its return on common equity was 12.2% for the quarter. On an operating basis, United’s ROA was 1.58% and its return on tangible common equity was 16.4%.

In the third quarter, loans grew at a 3% annualized rate, or at 4% annualized excluding the planned runoff of the discontinued indirect auto portfolio. With this loan growth and continued balance sheet remixing opportunities, United maintained its net interest margin during the quarter, despite declining interest rates. Core transaction deposits grew by $105 million, or 6% annualized, and total customer deposits increased by $197 million during the quarter. Finally, United’s combination of revenue growth and expense management resulted in a 55.64% efficiency ratio, or 53.90% on an operating basis, which represented a new Company best for the second consecutive quarter.

“We are pleased to report such a successful quarter, which is a testament to our team and their tireless dedication to providing outstanding customer service and to executing on our plans to deliver top quartile results,” said Lynn Harton, Chairman and CEO of United. “I am also tremendously proud that United was named one of the "Best Banks to Work For" by American Banker for the third year in a row. This honor is achieved through the focus and

energy of our bankers to build a company where great people can find fulfillment in helping others reach their financial goals."

Third Quarter 2019 Financial Highlights:


•	EPS growth of 11% over last year, or 15% on an operating basis


•	Return on assets of 1.51%, or 1.58% excluding merger-related and other charges


•	Return on common equity of 12.2%


•	Return on tangible common equity of 16.4% excluding merger-related and other charges


•	Loan production of $896 million compared to $778 million in Q3 2018


•	Loan growth, excluding planned runoff of the indirect portfolio of 4% for the quarter and 7% year-to-date on an annualized basis, excluding the acquisition of First Madison on May 1, 2019


•	Loan growth of $89 million, excluding planned run off of the indirect portfolio, was more than funded by core transaction deposit growth of $105 million


•	Mortgage locks of $508 million, a company high, compared to $298 million a year ago


•	Stable net interest margin of 4.12% was flat compared to the second quarter and up 17 basis points from a year ago


•	Efficiency ratio of 55.64%, or 53.90%, excluding merger-related and other charges


•	Net charge-offs of 12 basis points, up one basis point from last quarter and remaining at historically low levels


•	Nonperforming assets of 0.24% of total assets, compared with 0.21% at June 30, 2019 and 0.19% at September 30, 2018


•	Repurchased approximately 195,000 shares at an average price of $26.51 in the quarter

Conference Call

United will hold a conference call, Wednesday, October 23, 2019, 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 8899475. 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
	2019									2018						Third Quarter 2019 - 2018 Change		For the Nine Months Ended September 30,						YTD 2019 - 2018 Change
(in thousands, except per share data)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Third Quarter 2019 - 2018 Change		2019			2018			YTD 2019 - 2018 Change
INCOME SUMMARY
Interest revenue	$	140,615		$	139,156		$	136,516		$	133,854		$	128,721				$	416,287		$	366,226
Interest expense	21,277			21,372			20,882			18,975			16,611					63,531			42,355
Net interest revenue	119,338			117,784			115,634			114,879			112,110			6	%	352,756			323,871			9	%
Provision for credit losses	3,100			3,250			3,300			2,100			1,800			72		9,650			7,400			30
Noninterest income	29,031			24,531			20,968			23,045			24,180			20		74,530			69,916			7
Total revenue	145,269			139,065			133,302			135,824			134,490			8		417,636			386,387			8
Expenses	82,924			81,813			76,084			78,242			77,718			7		240,821			228,043			6
Income before income tax expense	62,345			57,252			57,218			57,582			56,772			10		176,815			158,344			12
Income tax expense	13,983			13,167			12,956			12,445			13,090			7		40,106			37,370			7
Net income	48,362			44,085			44,262			45,137			43,682			11		136,709			120,974			13
Merger-related and other charges	2,605			4,087			739			1,234			592					7,431			6,111
Income tax benefit of merger-related and other charges	(600		)	(940		)	(172		)	(604		)	(141		)			(1,712		)	(890		)
Net income - operating ⁽¹⁾	$	50,367		$	47,232		$	44,829		$	45,767		$	44,133		14		$	142,428		$	126,195		13

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.60		$	0.55		$	0.55		$	0.56		$	0.54		11		$	1.70		$	1.51		13
Diluted net income - operating ⁽¹⁾	0.63			0.59			0.56			0.57			0.55			15		1.77			1.57			13
Cash dividends declared	0.17			0.17			0.16			0.16			0.15			13		0.50			0.42			19
Book value	20.16			19.65			18.93			18.24			17.56			15		20.16			17.56			15
Tangible book value ⁽³⁾	15.90			15.38			14.93			14.24			13.54			17		15.90			13.54			17
Key performance ratios:
Return on common equity - GAAP ⁽²⁾⁽⁴⁾	12.16		%	11.45		%	11.85		%	12.08		%	11.96		%			11.83		%	11.43		%
Return on common equity - operating ^(1)(2)(4)	12.67			12.27			12.00			12.25			12.09					12.32			11.93
Return on tangible common equity - operating ^(1)(2)(3)(4)	16.38			15.88			15.46			15.88			15.81					15.92			15.62
Return on assets - GAAP ⁽⁴⁾	1.51			1.40			1.44			1.43			1.41					1.45			1.32
Return on assets - operating ⁽¹⁾⁽⁴⁾	1.58			1.50			1.45			1.45			1.42					1.51			1.38
Net interest margin (fully taxable equivalent) ⁽⁴⁾	4.12			4.12			4.10			3.97			3.95					4.11			3.88
Efficiency ratio - GAAP	55.64			57.28			55.32			56.73			56.82					56.09			57.52
Efficiency ratio - operating ⁽¹⁾	53.90			54.42			54.78			55.83			56.39					54.36			55.98
Equity to total assets	12.53			12.25			12.06			11.60			11.30					12.53			11.30
Tangible common equity to tangible assets ⁽³⁾	10.16			9.86			9.76			9.29			8.95					10.16			8.95

ASSET QUALITY
Nonperforming loans	$	30,832		$	26,597		$	23,624		$	23,778		$	22,530		37		$	30,832		$	22,530		37
Foreclosed properties	102			75			1,127			1,305			1,336			(92	)	102			1,336			(92	)
Total nonperforming assets ("NPAs")	30,934			26,672			24,751			25,083			23,866			30		30,934			23,866			30
Allowance for loan losses	62,514			62,204			61,642			61,203			60,940			3		62,514			60,940			3
Net charge-offs	2,723			2,438			3,130			1,787			1,466			86		8,291			4,326			92
Allowance for loan losses to loans	0.70		%	0.70		%	0.73		%	0.73		%	0.74		%			0.70		%	0.74		%
Net charge-offs to average loans ⁽⁴⁾	0.12			0.11			0.15			0.09			0.07					0.13			0.07
NPAs to loans and foreclosed properties	0.35			0.30			0.29			0.30			0.29					0.35			0.29
NPAs to total assets	0.24			0.21			0.20			0.20			0.19					0.24			0.19

AVERAGE BALANCES ($ in millions)
Loans	$	8,836		$	8,670		$	8,430		$	8,306		$	8,200		8		$	8,647		$	8,124		6
Investment securities	2,550			2,674			2,883			3,004			2,916			(13	)	2,701			2,863			(6	)
Earning assets	11,568			11,534			11,498			11,534			11,320			2		11,534			11,197			3
Total assets	12,681			12,608			12,509			12,505			12,302			3		12,600			12,209			3
Deposits	10,531			10,493			10,361			10,306			9,950			6		10,462			9,896			6
Shareholders’ equity	1,588			1,531			1,478			1,420			1,394			14		1,533			1,367			12
Common shares - basic (thousands)	79,663			79,673			79,807			79,884			79,806			—		79,714			79,588			—
Common shares - diluted (thousands)	79,667			79,678			79,813			79,890			79,818			—		79,718			79,598			—

AT PERIOD END ($ in millions)
Loans	$	8,903		$	8,838		$	8,493		$	8,383		$	8,226		8		$	8,903		$	8,226		8
Investment securities	2,515			2,620			2,720			2,903			2,873			(12	)	2,515			2,873			(12	)
Total assets	12,809			12,779			12,506			12,573			12,405			3		12,809			12,405			3
Deposits	10,757			10,591			10,534			10,535			10,229			5		10,757			10,229			5
Shareholders’ equity	1,605			1,566			1,508			1,458			1,402			14		1,605			1,402			14
Common shares outstanding (thousands)	78,974			79,075			79,035			79,234			79,202			—		78,974			79,202			—

⁽⁽¹⁾ Excludes merger-related and other charges which includes termination of pension plan in the third quarter of 2019, executive retirement charges in the second quarter of 2019 and amortization of certain executive change of control benefits. ⁽²⁾ Net income 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.



UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
	2019									2018						For the Nine Months Ended September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2019			2018
(in thousands, except per share data)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2019			2018

Expense reconciliation
Expenses (GAAP)	$	82,924		$	81,813		$	76,084		$	78,242		$	77,718		$	240,821		$	228,043
Merger-related and other charges	(2,605		)	(4,087		)	(739		)	(1,234		)	(592		)	(7,431		)	(6,111		)
Expenses - operating	$	80,319		$	77,726		$	75,345		$	77,008		$	77,126		$	233,390		$	221,932

Net income reconciliation
Net income (GAAP)	$	48,362		$	44,085		$	44,262		$	45,137		$	43,682		$	136,709		$	120,974
Merger-related and other charges	2,605			4,087			739			1,234			592			7,431			6,111
Income tax benefit of merger-related and other charges	(600		)	(940		)	(172		)	(604		)	(141		)	(1,712		)	(890		)
Net income - operating	$	50,367		$	47,232		$	44,829		$	45,767		$	44,133		$	142,428		$	126,195

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.60		$	0.55		$	0.55		$	0.56		$	0.54		$	1.70		$	1.51
Merger-related and other charges	0.03			0.04			0.01			0.01			0.01			0.07			0.06
Diluted income per common share - operating	$	0.63		$	0.59		$	0.56		$	0.57		$	0.55		$	1.77		$	1.57

Book value per common share reconciliation
Book value per common share (GAAP)	$	20.16		$	19.65		$	18.93		$	18.24		$	17.56		$	20.16		$	17.56
Effect of goodwill and other intangibles	(4.26		)	(4.27		)	(4.00		)	(4.00		)	(4.02		)	(4.26		)	(4.02		)
Tangible book value per common share	$	15.90		$	15.38		$	14.93		$	14.24		$	13.54		$	15.90		$	13.54

Return on tangible common equity reconciliation
Return on common equity (GAAP)	12.16		%	11.45		%	11.85		%	12.08		%	11.96		%	11.83		%	11.43		%
Merger-related and other charges	0.51			0.82			0.15			0.17			0.13			0.49			0.50
Return on common equity - operating	12.67			12.27			12.00			12.25			12.09			12.32			11.93
Effect of goodwill and other intangibles	3.71			3.61			3.46			3.63			3.72			3.60			3.69
Return on tangible common equity - operating	16.38		%	15.88		%	15.46		%	15.88		%	15.81		%	15.92		%	15.62		%

Return on assets reconciliation
Return on assets (GAAP)	1.51		%	1.40		%	1.44		%	1.43		%	1.41		%	1.45		%	1.32		%
Merger-related and other charges	0.07			0.10			0.01			0.02			0.01			0.06			0.06
Return on assets - operating	1.58		%	1.50		%	1.45		%	1.45		%	1.42		%	1.51		%	1.38		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)	55.64		%	57.28		%	55.32		%	56.73		%	56.82		%	56.09		%	57.52		%
Merger-related and other charges	(1.74		)	(2.86		)	(0.54		)	(0.90		)	(0.43		)	(1.73		)	(1.54		)
Efficiency ratio - operating	53.90		%	54.42		%	54.78		%	55.83		%	56.39		%	54.36		%	55.98		%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	12.53		%	12.25		%	12.06		%	11.60		%	11.30		%	12.53		%	11.30		%
Effect of goodwill and other intangibles	(2.37		)	(2.39		)	(2.30		)	(2.31		)	(2.35		)	(2.37		)	(2.35		)
Tangible common equity to tangible assets	10.16		%	9.86		%	9.76		%	9.29		%	8.95		%	10.16		%	8.95		%



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

	2019						2018				Linked Quarter Change			Year over Year Change
(in millions)	Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Linked Quarter Change			Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,692	$	1,658	$	1,620	$	1,648	$	1,673	$	34		$	19
Income producing commercial RE	1,934		1,939		1,867		1,812		1,788		(5		)	146
Commercial & industrial	1,271		1,299		1,284		1,278		1,194		(28		)	77
Commercial construction	1,001		983		866		796		761		18			240
Equipment financing	729		674		606		565		509		55			220
Total commercial	6,627		6,553		6,243		6,099		5,925		74			702
Residential mortgage	1,121		1,108		1,064		1,049		1,035		13			86
Home equity lines of credit	669		675		684		694		702		(6		)	(33		)
Residential construction	229		219		200		211		198		10			31
Consumer	257		283		302		330		366		(26		)	(109		)
Total loans	$	8,903	$	8,838	$	8,493	$	8,383	$	8,226	$	65		$	677

LOANS BY MARKET
North Georgia	$	1,002	$	1,002	$	970	$	981	$	992	—			10
Atlanta	1,740		1,745		1,524		1,507		1,493		(5		)	247
North Carolina	1,117		1,084		1,074		1,072		1,078		33			39
Coastal Georgia	611		604		603		588		610		7			1
Gainesville	246		244		243		247		235		2			11
East Tennessee	435		446		458		477		460		(11		)	(25		)
South Carolina	1,705		1,674		1,674		1,645		1,586		31			119
Commercial Banking Solutions	1,916		1,884		1,766		1,658		1,530		32			386
Indirect auto	131		155		181		208		242		(24		)	(111		)
Total loans	$	8,903	$	8,838	$	8,493	$	8,383	$	8,226	$	65		$	677



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
	2019
(in thousands)	Third Quarter			Second Quarter			First Quarter
NONACCRUAL LOANS
Owner occupied RE	$	8,430		$	8,177		$	7,030
Income producing RE	2,030			1,331			1,276
Commercial & industrial	2,625			2,366			1,666
Commercial construction	1,894			1,650			473
Equipment financing	1,974			2,047			1,813
Total commercial	16,953			15,571			12,258
Residential mortgage	9,475			8,012			8,281
Home equity lines of credit	3,065			1,978			2,233
Residential construction	597			494			347
Consumer	742			542			505
Total	$	30,832		$	26,597		$	23,624

NONACCRUAL LOANS ACTIVITY
Beginning Balance	$	26,597		$	23,624		$	23,778
Loans placed on non-accrual	8,722			8,316			6,759
Payments received	(2,107		)	(3,212		)	(3,520		)
Loan charge-offs	(2,278		)	(2,131		)	(2,714		)
Foreclosures	(102		)	—			(679		)
Ending Balance	$	30,832		$	26,597		$	23,624



	2019
	Third Quarter					Second Quarter					First 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	$	(39	)	(0.01	)%	$	(58	)	(0.01	)%	$	(64	)	(0.02	)%
Income producing RE	431			0.09		241			0.05		177			0.04
Commercial & industrial	691			0.21		1,141			0.35		1,356			0.43
Commercial construction	(247		)	(0.10	)	(162		)	(0.07	)	(325		)	(0.16	)
Equipment financing	1,174			0.67		890			0.56		1,281			0.89
Total commercial	2,010			0.12		2,052			0.13		2,425			0.16
Residential mortgage	158			0.06		(125		)	(0.05	)	13			—
Home equity lines of credit	83			0.05		(111		)	(0.07	)	215			0.13
Residential construction	(5		)	(0.01	)	199			0.38		(22		)	(0.04	)
Consumer	477			0.70		423			0.58		499			0.64
Total	$	2,723		0.12		$	2,438		0.11		$	3,130		0.15

⁽¹⁾ Annualized.

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

(in thousands, except share and per share data)	September 30, 2019			December 31, 2018
ASSETS
Cash and due from banks	$	108,389		$	126,083
Interest-bearing deposits in banks (includes restricted cash of $5,326 and $6,702)	252,670			201,182
Cash and cash equivalents	361,059			327,265
Debt securities available for sale	2,272,046			2,628,467
Debt securities held to maturity (fair value $248,546 and $268,803)	243,028			274,407
Loans held for sale at fair value	54,625			18,935
Loans and leases, net of unearned income	8,903,266			8,383,401
Less allowance for loan and lease losses	(62,514		)	(61,203		)
Loans and leases, net	8,840,752			8,322,198
Premises and equipment, net	215,435			206,140
Bank owned life insurance	201,955			192,616
Accrued interest receivable	33,233			35,413
Net deferred tax asset	34,591			64,224
Derivative financial instruments	43,755			24,705
Goodwill and other intangible assets	343,340			324,072
Other assets	165,667			154,750
Total assets	$	12,809,486		$	12,573,192
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	3,527,815		$	3,210,220
NOW and interest-bearing demand	2,210,352			2,369,631
Money market	2,206,496			2,002,670
Savings	699,131			669,886
Time	1,890,431			1,598,391
Brokered	222,292			683,715
Total deposits	10,756,517			10,534,513
Federal Home Loan Bank advances	40,000			160,000
Long-term debt	240,245			267,189
Derivative financial instruments	16,244			26,433
Accrued expenses and other liabilities	151,055			127,503
Total liabilities	11,204,061			11,115,638
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized; 78,974,199 and 79,234,077 shares issued and outstanding	78,974			79,234
Common stock issuable; 660,581 and 674,499 shares	11,327			10,744
Capital surplus	1,495,267			1,499,584
Retained earnings (accumulated deficit)	5,594			(90,419		)
Accumulated other comprehensive income (loss)	14,263			(41,589		)
Total shareholders' equity	1,605,425			1,457,554
Total liabilities and shareholders' equity	$	12,809,486		$	12,573,192

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2019		2018		2019			2018
Interest revenue:
Loans, including fees	$	122,645	$	108,335	$	357,575		$	308,296
Investment securities, including tax exempt of $1,118 and $1,052, and $3,409 and $3,049	17,744		19,899		57,638			56,448
Deposits in banks and short-term investments	226		487		1,074			1,482
Total interest revenue	140,615		128,721		416,287			366,226

Interest expense:
Deposits:
NOW and interest-bearing demand	3,214		1,985		10,283			4,483
Money market	5,126		3,177		14,100			7,853
Savings	41		33		115			117
Time	8,732		5,746		25,687			12,900
Total deposit interest expense	17,113		10,941		50,185			25,353
Short-term borrowings	429		274		838			772
Federal Home Loan Bank advances	521		1,791		2,695			5,551
Long-term debt	3,214		3,605		9,813			10,679
Total interest expense	21,277		16,611		63,531			42,355
Net interest revenue	119,338		112,110		352,756			323,871
Provision for credit losses	3,100		1,800		9,650			7,400
Net interest revenue after provision for credit losses	116,238		110,310		343,106			316,471

Noninterest income:
Service charges and fees	9,916		9,112		27,429			26,831
Mortgage loan and other related fees	8,658		5,262		17,750			15,928
Brokerage fees	1,699		1,525		4,624			3,598
Gains from sales of SBA/USDA loans	1,639		2,605		4,412			6,784
Securities gains (losses), net	—		2		(118		)	(1,302		)
Other	7,119		5,674		20,433			18,077
Total noninterest income	29,031		24,180		74,530			69,916
Total revenue	145,269		134,490		417,636			386,387

Noninterest expenses:
Salaries and employee benefits	50,501		47,146		146,161			135,384
Communications and equipment	6,223		5,590		18,233			15,071
Occupancy	5,921		5,779		17,424			16,939
Advertising and public relations	1,374		1,442		4,256			4,341
Postage, printing and supplies	1,618		1,574		4,733			4,896
Professional fees	4,715		3,927		11,930			11,435
FDIC assessments and other regulatory charges	314		2,228		3,571			6,677
Amortization of intangibles	1,210		1,681		3,845			5,426
Merger-related and other charges	2,541		115		6,981			4,449
Other	8,507		8,236		23,687			23,425
Total noninterest expenses	82,924		77,718		240,821			228,043
Net income before income taxes	62,345		56,772		176,815			158,344
Income tax expense	13,983		13,090		40,106			37,370
Net income	$	48,362	$	43,682	$	136,709		$	120,974

Net income available to common shareholders	$	48,011	$	43,381	$	135,727		$	120,124

Net income per common share:
Basic	$	0.60	$	0.54	$	1.70		$	1.51
Diluted	0.60		0.54		1.70			1.51
Weighted average common shares outstanding:
Basic	79,663		79,806		79,714			79,588
Diluted	79,667		79,818		79,718			79,598

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended September 30,



	2019							2018
(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⁾	$	8,835,585		$	122,526	5.50	%	$	8,199,856		$	108,197	5.23	%
Taxable securities⁽³⁾	2,379,927			16,626		2.79		2,763,461			18,847		2.73
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾	170,027			1,502		3.53		152,939			1,417		3.71
Federal funds sold and other interest-earning assets	182,935			616		1.35		203,707			751		1.47
Total interest-earning assets (FTE)	11,568,474			141,270		4.85		11,319,963			129,212		4.53

Noninterest-earning assets:
Allowance for loan losses	(63,474		)					(62,322		)
Cash and due from banks	116,922							123,290
Premises and equipment	221,930							216,775
Other assets ⁽³⁾	836,951							703,915
Total assets	$	12,680,803						$	12,301,621

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,123,910		3,214		0.60		$	1,963,312		1,985		0.40
Money market	2,277,162			5,126		0.89		2,078,116			3,177		0.61
Savings	695,297			41		0.02		680,640			33		0.02
Time	1,879,801			8,053		1.70		1,545,020			3,351		0.86
Brokered time deposits	102,078			679		2.64		434,182			2,395		2.19
Total interest-bearing deposits	7,078,248			17,113		0.96		6,701,270			10,941		0.65
Federal funds purchased and other borrowings	73,733			429		2.31		50,767			274		2.14
Federal Home Loan Bank advances	88,261			521		2.34		331,413			1,791		2.14
Long-term debt	243,935			3,214		5.23		296,366			3,605		4.83
Total borrowed funds	405,929			4,164		4.07		678,546			5,670		3.32
Total interest-bearing liabilities	7,484,177			21,277		1.13		7,379,816			16,611		0.89

Noninterest-bearing liabilities:
Noninterest-bearing deposits	3,453,174							3,249,218
Other liabilities	155,107							278,764
Total liabilities	11,092,458							10,907,798
Shareholders' equity	1,588,345							1,393,823
Total liabilities and shareholders' equity	$	12,680,803						$	12,301,621

Net interest revenue (FTE)				$	119,993						$	112,601
Net interest-rate spread (FTE)						3.72	%						3.64	%
Net interest margin (FTE) ⁽⁴⁾						4.12	%						3.95	%


⁽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 $35.1 million in 2019 and unrealized losses of $49.9 million in 2018 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 Nine Months Ended September 30,



	2019							2018
(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⁾	$	8,646,622		$	357,541	5.53	%	$	8,124,269		$	307,981	5.07	%
Taxable securities ⁽³⁾	2,532,070			54,229		2.86		2,712,900			53,399		2.62
Tax-exempt securities (FTE)⁽¹⁾⁽³⁾	168,787			4,579		3.62		150,014			4,106		3.65
Federal funds sold and other interest-earning assets	186,402			1,913		1.37		209,836			2,123		1.35
Total interest-earning assets (FTE)	11,533,881			418,262		4.85		11,197,019			367,609		4.39

Non-interest-earning assets:
Allowance for loan losses	(62,664		)					(61,259		)
Cash and due from banks	121,889							138,809
Premises and equipment	220,872							217,339
Other assets ⁽³⁾	785,862							717,555
Total assets	$	12,599,840						$	12,209,463

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,199,607		10,283		0.63		$	2,098,734		4,483		0.29
Money market	2,187,822			14,100		0.86		2,113,972			7,853		0.50
Savings	685,167			115		0.02		671,883			117		0.02
Time	1,761,374			20,338		1.54		1,534,823			8,288		0.72
Brokered time deposits	292,835			5,349		2.44		298,653			4,612		2.06
Total interest-bearing deposits	7,126,805			50,185		0.94		6,718,065			25,353		0.50
Federal funds purchased and other borrowings	44,898			838		2.50		58,144			772		1.78
Federal Home Loan Bank advances	142,876			2,695		2.52		392,227			5,551		1.89
Long-term debt	252,686			9,813		5.19		295,966			10,679		4.82
Total borrowed funds	440,460			13,346		4.05		746,337			17,002		3.05
Total interest-bearing liabilities	7,567,265			63,531		1.12		7,464,402			42,355		0.76

Noninterest-bearing liabilities:
Noninterest-bearing deposits	3,335,450							3,178,387
Other liabilities	164,350							199,848
Total liabilities	11,067,065							10,842,637
Shareholders' equity	1,532,775							1,366,826
Total liabilities and shareholders' equity	$	12,599,840						$	12,209,463

Net interest revenue (FTE)				$	354,731						$	325,254
Net interest-rate spread (FTE)						3.73	%						3.63	%
Net interest margin (FTE) ⁽⁴⁾						4.11	%						3.88	%


⁽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 $4.94 million in 2019 and unrealized losses of $40.4 million in 2018 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 a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the southeast region’s largest full-service financial institutions with $12.8 billion in assets, and 147 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For five of the past six years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast. In 2019, for the sixth consecutive year, Forbes magazine included United on its list of the 100 Best Banks in America, and for the first time included United on its list of The World’s Best Banks. Additional information about UCBI and the Bank can be found at www.ucbi.com.

Non-GAAP Financial Measures

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “operating net income per diluted 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,” “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.

# # #

a3q19irpresentation

Disclosures CAUTIONARY STATEMENT This Investor Presentation contains forward-looking statements, as defined by federal securities laws, including statements about United Community Banks, Inc. (“United”) and its financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of our operations and future financial performance. Our operations and such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward- looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission, including its 2018 Annual Report on Form 10-K under the section entitled “Forward-Looking Statements.” Forward- looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements. NON-GAAP MEASURES This Investor Presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles (“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 measures include: “Earnings per share – operating,” “Diluted earnings per share – operating,” “Tangible book value per share,” “Return on common equity – operating,” “Return on tangible common equity – operating,” “Return on assets – operating,” “Efficiency ratio – operating,” “Expenses – operating,” and “Tangible common equity to tangible assets.” Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating United’s underlying performance trends. Further, management uses these measures in managing and evaluating United’s business and intends to refer to them in discussions about our operations and performance. Operating performance 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 GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this Presentation. 2

United Community Banks, Inc. $12.8 $8.9 Committed to Service Since 1950 Billion in Assets Billion in Total Loans $2.3 $10.8 Billion in Total Deposits Billion Market Cap 180% Price / TBV 1.58% Return on average assets - 12.6x operating Price / EPS (2020E) Full Service Branch Network Extended Navitas and SBA Markets 55.64% 12.4% Efficiency ratio - GAAP  Metro-focused branch network with  Offered in 48 states across the CET1 locations in the fastest growing MSAs in continental U.S. the Southeast  Our SBA business has $80.2 million in 53.90%  Top 10 market share in GA and SC 2019 originations and includes both an Efficiency ratio – operating(1)  142 branch locations, 5 loan production in-footprint business and a national offices, and 5 mortgage loan offices business with 11 specific verticals across GA, NC, SC and TN  Our Navitas subsidiary lends on essential use commercial equipment and makes up 8.2% of loans 0.63% 0.24% Cost of Deposits One of the lowest cost of NPAs / Assets deposit bases in the Market data as of October 17, 2019 (1) See non-GAAP reconciliation table slides at the end of the exhibits for a reconciliation of Southeast operating performance measures to GAAP performance measures 3

United’s Priorities Service People Performance Best-in-Class A great place to Sustainable top- customer work for great quartile ROA service across people all channels Return on assets – operating of 1.58% in 3Q19, up 8 basis points from 2Q19 4

Attractive Markets – United Deposits RALEIGH $0.5 bn KNOXVILLE $0.5 bn GREENVILLE / SPARTANBURG $1.0 bn CHARLESTON / MYRTLE BEACH $0.5 bn ATLANTA $2.9 bn Density of United Branch Locations Source: S&P Global Market Intelligence 5 United deposits as of 6/30/2019

Profitability Above Peers Return on Assets - GAAP Return on Equity - GAAP 1.50% 12.50% 1.45% 1.45% 12.00% 11.83% 1.40% 11.50% 1.35% 1.31% 11.00% 1.30% 10.50% 10.13% 1.25% 10.00% 1.20% 9.50% 1.15% 9.00% 1.10% 8.50% 1.05% 8.00% 1.00% 2019 YTD 2019 YTD UCBI KRX Peers UCBI KRX Peers Achieved top quartile ROA target in 2019 Note: Peer comparison banks comprise the KBW Regional Bank Index (ticker: KRX) Source: S&P Global Market Intelligence 6 United results as of 3Q19; KRX results as of 2Q19

12.16% Return on common equity - $0.60 GAAP Earnings per share - 16.38% 3Q19 Highlights GAAP Return on tangible common equity - operating Earnings Per Share Return on Assets $0.63 1.58% 15% $0.59 $0.60 $0.63 $0.54 $0.55 $0.55 1.51% Earnings per share - YOY growth in 1.50% operating, up 15% YOY Book value per share 1.42% 1.41% 1.40% 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 GAAP Operating (1) GAAP Operating (1) 1.51% 17% YOY growth in Tangible Return on assets - GAAP book value per share Book Value Per Share Dividends Per Share $19.65 $20.16 $0.58 $17.56 $0.50 $15.38 $15.90 $0.38 Annualized 3Q EOP $13.54 1.58% loan growth of Return on assets - operating 4%, excluding indirect auto runoff of $24mm 3Q18 2Q19 3Q19 2017 2018 YTD 2019 GAAP Operating (1) Dividends per share $0.17 Core transaction deposit growth of Quarterly Dividend, $105 mm up 13% YOY in 3Q (1) See non-GAAP reconciliation table slides at the end of the exhibits for a 7 reconciliation of operating performance measures to GAAP performance

Net Interest Revenue / Margin(1) $ in millions $119.3 $117.7 $112.1  Net interest revenue increased $1.6 mm (1%) vs. 2Q19 and $7.2 mm (6%) vs. 3Q18  Net interest margin flat quarter-over-quarter and up 17 bps YoY  Benefited from organic loan growth, strong low cost deposit growth and a continued shift towards loans from securities  Accretable yield contributed $4.2 mm or 15 bps to 3Q19 NIM vs. 12 bps in 2Q19, which partially offset the impact of rate cuts 3.95% 4.12% 4.12% 3Q18 2Q19 3Q19 Net Interest Revenue Net Interest Margin (1) (1) Net interest margin is calculated on a fully-taxable equivalent basis 8

Valuable Deposit Mix 3Q19 Total Deposits $10.8 billion Time 18%  33% of deposits are Demand Deposits DDA 33%  UCBI cost of deposits down 2 bps to 0.63% in 3Q19 Savings 6%  UCBI cost of deposits significantly lower than KRX peer levels (0.65% in 2Q19 vs. KRX peers at 0.86%) 22% MMDA 21% NOW Note: Peer comparison banks comprise the KBW Regional Bank Index (ticker: KRX) 9 Source: S&P Global Market Intelligence

Strong Core Transaction Deposit Growth $ in billions $7.503 $7.398  EOP transaction accounts increased $105 mm in 3Q19 to $7.5 bn and increased $547 mm YTD $7.091  Money market deposits up $79 mm from 2Q19, which drove the majority of 3Q19 core transaction growth  Transaction accounts increased 10% annualized YTD  First Madison closed on May 1st and added $138 mm in core transaction deposits in 2Q19 1Q19 2Q19 3Q19 Note: Transaction accounts include demand deposits, NOW, money market and savings accounts 10

Loans 3Q19 Total Loans $8.9 billion Residential Construction  Annualized linked-quarter loan growth was Home Equity $65 mm, or 3% 2% 8%  Excluding the impact of planned indirect auto Residential runoff and the addition of First Madison, YTD Mortgage loan growth was 7% annualized 13% (1) C&I 41%  Diversified portfolio, weighted towards C&I Other 3% Consumer  Well within regulatory guidance on construction and CRE levels  The 100%/300% ratios stand at 87% and 211% of Tier 1 risk-based capital, respectively 22% CRE 11% Commercial Construction (1) C&I includes commercial and industrial loans, owner-occupied CRE loans and equipment finance loans 11

Noninterest Income $ in millions $29.0 Linked Quarter $1.6  Fees up $4.5 mm $24.2 $24.5  Mortgage fees up $3.3 mm driven mainly by record production ($508 mm in 3Q19 rate locks vs. $390 mm in $1.5 $2.6 $8.7 2Q19)  SBA fees up $0.17 mm from 2Q19 to $1.6 mm from 2Q19 $5.3 $5.3 Year-over-Year $1.7 $1.6  Fees up $4.9 mm $1.5  Rate locks up 71% compared to last year ($508 mm in $7.1 3Q19 vs. $298 mm in 3Q18) $7.1  3Q19 SBA loan sales of $21.0 mm, down 42% from $36.0 $5.7 mm in 3Q18 due to strategic change to hold more production $9.1 $9.0 $9.9 3Q18 2Q19 3Q19 Service Charges Other Brokerage Mortgage SBA 12

Expense Discipline $ in millions $82.9 $81.8 $80.3 Linked Quarter $77.7 $77.1 $77.7  GAAP and operating expenses increased 1% and 3%, respectively  Revenue driven brokerage and mortgage commissions drove the majority of the increase in salary and benefits expense compared to last quarter 57.3%  First Madison operating expenses added $1.1 mm in 3Q19  Operating efficiency ratio improved 52 bps to 53.9% 56.8% Year-over-Year 55.6% 56.4%  Market expansions and acquisitions drove GAAP and operating expenses higher by 7% and 4%, respectively  Continued cost control efforts help drive operating efficiency 54.4% ratio improvement of 249 bps 53.9% 3Q18 2Q19 3Q19 Expenses Efficiency Ratio GAAP GAAP (1) Operating (1) Operating (1) See non-GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance 13 measures to GAAP performance measures

Credit Quality Provision for Credit Losses Net Charge-Offs as % $ in millions of Average Loans $3.25 $3.10 0.12% 0.11% $1.80 0.07% 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 Allowance for Loan Losses Non-Performing Assets as % of Total Assets 0.74% 0.70% 0.70% 0.24% 0.21% 0.19% 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 14

Capital Ratios Holding Company 3Q18 2Q19 3Q19 Common Equity Tier 1 Capital 12.0 % 12.1 % 12.4 % Tier 1 Risk-Based Capital 12.3 12.4 12.7 Total Risk-Based Capital 14.2 14.2 14.5 Leverage 9.5 10.0 10.2 Tangible Common Equity to 8.9 9.9 10.2 Tangible Assets  All regulatory capital ratios significantly above “well-capitalized”  Quarterly dividend of $0.17 per share (up 13% YoY)  Repurchased a total of 195,443 shares outstanding in 3Q19 at an average price of $26.51 for a total of $5.2 mm; $37 mm remaining on current share repurchase authorization *3Q19 Capital Ratios are preliminary 15

Key Strengths  Culture and business model that attracts both bankers and potential acquisition partners  Positioned well in many of the South's fastest-growing markets  Superior customer service helps drive strong core deposit growth  Well-developed credit model that drives consistent performance through cycles  Liquid balance sheet and strong capital offer flexibility in changing rate environments 16

Who We Are Full-Service Regional Bank with a Strong Culture Rooted in Sound Credit Underwriting & Growth Cultural Pillars Customer Service Is at Our Foundation  Underwriting conservatism and portfolio diversification High-Quality  Top quartile credit quality performance Balance  Prudent capital, liquidity and interest-rate risk management Sheet  Focused on improving return to shareholders with increasing ROTCE and dividend growth  Managing a steady margin with minimal accretion income  Fee revenue expansion through focused growth initiatives  Continued operating expense discipline while investing in Profitability growth opportunities  Executing on M&A cost savings  High-quality, low-cost core deposit base  Addition of Commercial Banking Solutions platforms (middle- market banking, SBA lending, senior care, income-property lending, asset-based lending, builder finance, renewable energy, equipment finance) and actively pursuing additional lending platforms Growth  Entered into and continue to target new markets with team lift-outs  Continuous emphasis on and enhancement of Mortgage product offerings to drive loan and revenue growth  Acquisitions that fit our footprint and culture and deliver 18 desired financial returns

AWARDS & RECOGNITION 19

Who We Are Focused on High-Growth MSAs in Southeast 2024 (2) 2019-2024 Strong Demographic Profile Projected Fastest Growing Projected 2019 Median Southeast MSAs (1) Population Population Household ’19 – ’24 Projected Population Growth Growth Income 1. Myrtle Beach, SC 9.66% 485,770 $55,203 5.2% 3.6% 2. Cape Coral, FL 8.46% 757,170 $62,988 3. Orlando, FL 8.13% 2,589,416 $65,275 UCBI US 4. Charleston, SC 8.11% 799,117 $70,920 ’19 – ’24 Projected Household Income Growth 5. Raleigh, NC 8.02% 1,366,959 $85,734 6. Naples, FL 7.86% 381,728 $73,715 10.8% 7. Lakeland, FL 7.55% 705,037 $54,996 8.8% 8. North Port, FL 7.53% 825,378 $66,059 UCBI US 9. Charlotte, NC 7.29% 2,591,118 $73,487 10. Jacksonville, FL 6.92% 1,549,094 $67,247 Median Household Income 17. Atlanta, GA 6.52% 6,017,552 $77,092 $63,174 $57,412 19. Greenville, SC 6.18% 912,621 $62,654 20. Savannah, GA 6.15% 395,004 $68,589 23. Spartanburg, SC 5.93% 340,535 $55,507 UCBI US UCBI MSA Presence (Branch and or LPO) Source: S&P Global Market Intelligence 20 (1) Includes MSAs with a population of greater than 300,000 (2) Weighted by State deposits

Commercial RE Diversification – 9/30/2019 Commercial Real Estate - Income Producing % Outstanding Total Outstanding $1.9 billion Other 15% Office Buildings 22% Multi-Residential Properties 7% 9% Warehouse 17% Retail Buildings 10% Hotels/Motels 10% 10% Assisted Living/Nursing Investor Home/Rehab Centers Outstanding Average Loan Size Residential (in thousands )  Commercial Construction $466  Commercial RE:  Composite CRE 452  Owner-Occupied 370  Income-Producing 562 21

Strong Credit Culture 2. Add Significant Talent  CEO with deep knowledge and 1. Process Change experience in credit  In 2014, centralized and  2015 Rob Edwards brought in to lead streamlined consumer underwriting team (BB&T, TD Bank) and related functions  Senior credit risk team now has large  Significantly strengthened bank credit risk experience commercial process for approvals and monitoring 3. Concentration Management: BUILT TO Size 5. Concentration Management: OUTPERFORM  In house project lending limit of $20 Product mm, legal lending limit of $366 mm IN THE NEXT  Construction & CRE ratio as a  Relationship limit of $35 mm percentage of Tier 1 RBC = CYCLE  $125 mm of SNC’s outstanding, 87%/211% $207 mm committed  C&D > 30% in cycle, now 15.1%  Top 25 relationships = $632 mm,  Land in C&D $246 mm 7.1 % of total loans  Navitas 8.2% of loans  Granular product concentration limits 4. Concentration Management: Geography  Four state franchise with mix of metro and rural markets 22

Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q18 4Q18 1Q19 2Q19 3Q19 (1) (1) (1) (1) (1) Diluted Earnings per share Diluted earnings per share - GAAP $ 0.54 $ 0.56 $ 0.55 $ 0.55 $ 0.60 Merger-related and other charges 0.01 0.01 0.01 0.04 0.03 Diluted earnings per share - Operating 0.55 0.57 0.56 0.59 0.63 Return on Assets Return on assets - GAAP 1.41 % 1.43 % 1.44 % 1.40 % 1.51 % Merger-related and other charges 0.01 0.02 0.01 0.10 0.07 Return on assets - Operating 1.42 % 1.45 % 1.45 % 1.50 % 1.58 % Book Value per share Book Value per share - GAAP $ 17.56 $ 18.24 $ 18.93 $ 19.65 $ 20.16 Effect of goodwill and other intangibles (4.02) (4.00) (4.00) (4.27) (4.26) Tangible book value per share $ 13.54 $ 14.24 $ 14.93 $ 15.38 $ 15.90 (1) Merger-related and other charges for 3Q19, 2Q19, 1Q19, 4Q18, 3Q18, 2Q18 and 1Q18 include $64 thousand, $193 thousand, $193 thousand, $269 thousand, $478 thousand, $593 thousand and $593 thousand, respectively, of intangible amortization resulting from payments made to 23 executives under their change of control agreements. The resulting intangible assets are being amortized over 12 to 24 months.

Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q18 4Q18 1Q19 2Q19 3Q19 (1) (1) (1) (1) (1) Return on Tangible Common Equity Return on common equity - GAAP 11.96 % 12.08 % 11.85 % 11.45 % 12.16 % Effect of merger-related and other charges 0.13 0.17 0.15 0.82 0.51 Return on common equity - Operating 12.09 12.25 12.00 12.27 12.67 Effect of goodwill and intangibles 3.72 3.63 3.46 3.61 3.71 Return on tangible common equity - Operating 15.81 % 15.88 % 15.46 % 15.88 % 16.38 % Expenses Expenses - GAAP $ 77,718 $ 78,242 $ 76,084 $ 81,813 $ 82,924 Merger-related and other charges (592) (1,234) (739) (4,087) (2,605) Expenses - Operating $ 77,126 $ 77,008 $ 75,345 $ 77,726 $ 80,319 Efficiency Ratio Efficiency Ratio - GAAP 56.82 % 56.73 % 55.32 % 57.28 % 55.64 % Merger-related and other charges (0.43) (0.90) (0.54) (2.86) (1.74) Efficiency Ratio - Operating 56.39 % 55.83 % 54.78 % 54.42 % 53.90 % Tangible common equity to tangible assets Common Equity to assets ratio - GAAP 11.30 % 11.59 % 12.06 % 12.26 % 12.53 % Effect of goodwill and intangibles (2.35) (2.30) (2.30) (2.40) (2.37) Tangible common equity to tangible assets ratio 8.95 % 9.29 % 9.76 % 9.86 % 10.16 % (1) Merger-related and other charges for 3Q19, 2Q19, 1Q19, 4Q18, 3Q18, 2Q18 and 1Q18 include $64 thousand, $193 thousand, $193 thousand, $269 thousand, $478 thousand, $593 thousand and $593 thousand, respectively, of intangible amortization resulting from payments made to 24 executives under their change of control agreements. The resulting intangible assets are being amortized over 12 to 24 months.