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): January 21, 2020

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 January 21, 2020, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the fourth 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 January 22, 2020, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the fourth 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 January 21, 2020

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: January 21, 2020

Exhibit

https://cdn.kscope.io/92b1e74ea8d666627203f5ac1c428091-ucbilogoeaa03.jpg

For Immediate Release

For more information:

Jefferson Harralson

Chief Financial Officer

(864) 240-6208

Jefferson_Harralson@ucbi.com

United Community Banks, Inc. Reports Fourth Quarter Results

EPS of $0.61, Return on Assets of 1.50% and Return on Equity of 12.07%

GREENVILLE, SC - January 21, 2020

United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced its fourth quarter financial results, including strong year-over-year loan and deposit growth, operating efficiency and asset quality. Diluted earnings per share were $0.61, an increase of $0.05 or 9% from a year ago. Excluding a nominal amount of merger-related and other charges, diluted operating earnings per share were also $0.61, up 7% over last year. United’s return on assets was 1.50% and its return on common equity was 12.1% for the quarter. On an operating basis, United’s return on assets was also 1.50% and its return on tangible common equity was 15.5%.

During the quarter, the company sold its remaining investment in its indirect auto portfolio, completing its exit from that business. Excluding indirect auto, loans grew at a 2% annualized rate in the fourth quarter. United's net interest margin decreased as expected due to falling interest rates. Other items that impacted the net interest margin included seasonally higher average public deposits invested at lower yielding overnight rates and lower purchased loan accretion when compared to previous quarters. Core transaction deposits remained stable and total deposits grew by $140 million.

For the full year of 2019, United's return on assets increased 11 basis points to 1.46% and EPS increased by 12%. Operating return on assets increased 11 basis points to 1.51% and operating EPS increased 11%, as the company continued to execute on its plans to deliver top quartile performance. 2019 saw strong operating leverage, resulting in a company best efficiency ratio of 55.8% and an operating efficiency ratio of 54.5%.

“Our fourth quarter caps off what has been an outstanding year for United. Our team continued delivering best in class customer service, which has led to the achievement of our top quartile performance goals,” said Lynn Harton, Chairman and CEO of United. “We are proud and honored that United was named one of the ‘Best Banks to Work For’ by American Banker for the third year in a row, as well as one of the ‘World’s Best Banks in 2019’ by Forbes. These accolades are totally due to the passion and caring of our 2,341 employees and their efforts to build a great company where they can develop fulfilling careers, reach ambitious financial goals and serve United's customers and communities at the highest level. We look forward to continued success in 2020.”

2019 Highlights:


•	2019 earnings per diluted share were $2.31, a 12% increase over 2018


•	Excluding merger-related and other charges, operating earnings per diluted share for 2019 were $2.38 compared to $2.14 in 2018, an increase of 11%


•	Return on assets was 1.46% in 2019, an increase of 11 basis points from 2018


•	Excluding merger-related and other charges, operating return on assets was 1.51%, an increase of 11 basis points from 2018


•	Efficiency ratio of 55.8% in 2019 improved 154 basis points as compared to 2018


•	Excluding merger-related and other charges, efficiency ratio of 54.5% improved 144 basis points as compared to 2018


•	End of period loans grew $430 million in 2019, up 5% over December 31, 2018


•	Common Equity Tier 1 ratio was 13.0% at December 31, 2019, compared to 12.2% at December 31, 2018


•	Dividends of $0.68 per share were declared in 2019, up 17% over 2018


•	United completed the acquisition of First Madison Bank & Trust on May 1, 2019


•	Share repurchases of 500,495 shares were accomplished during the year at an average price of $26.01

Fourth Quarter 2019 Financial Highlights:


•	EPS of $0.61, representing growth of 9% over last year, or 7% on an operating basis


•	Return on assets of 1.50%


•	Return on common equity of 12.1%


•	Operating return on tangible common equity of 15.5%, excluding merger-related and other charges


•	End of period total loans fell by $90 million, but excluding indirect auto, end of period loans grew at a 2% annualized pace


•	Loan production was strong at $854 million, but was offset by higher than usual paydowns


•	Despite weaker seasonality, our mortgage business remained strong with loan locks of $411 million, compared to $251 million a year ago due to a favorable rate environment and the impact of new hires


•	Net interest margin of 3.93% was down 19 basis points compared to the third quarter and down 4 basis points compared to a year ago


•	Efficiency ratio of 54.9%


•	Net charge-offs of 18 basis points, up six basis points from last quarter and remaining at historically low levels


•	Nonperforming assets of 0.28% of total assets, compared with 0.24% at September 30, 2019 and 0.20% at December 31, 2018


•	Unusual items in the quarter netted to a slight gain, with a $1.6 million bank owned life insurance gain offset by $0.9 million in securities losses. Additionally, our indirect portfolio sales resulted in a $0.7 million loss offset by a $0.5 million indirect portfolio loan loss reserve release

Conference Call

United will hold a conference call, Wednesday, January 22, 2020, 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 7081477. 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.
Financial Highlights
Selected Financial Information
	2019												2018			Fourth Quarter 2019 - 2018 Change		For the Twelve Months Ended December 31,						YTD 2019 - 2018 Change
(in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Fourth Quarter 2019 - 2018 Change		2019			2018			YTD 2019 - 2018 Change
INCOME SUMMARY
Interest revenue	$	136,419		$	140,615		$	139,156		$	136,516		$	133,854				$	552,706		$	500,080
Interest expense	19,781			21,277			21,372			20,882			18,975					83,312			61,330
Net interest revenue	116,638			119,338			117,784			115,634			114,879			2	%	469,394			438,750			7	%
Provision for credit losses	3,500			3,100			3,250			3,300			2,100					13,150			9,500
Noninterest income	30,183			29,031			24,531			20,968			23,045			31		104,713			92,961			13
Total revenue	143,321			145,269			139,065			133,302			135,824			6		560,957			522,211			7
Expenses	81,424			82,924			81,813			76,084			78,242			4		322,245			306,285			5
Income before income tax expense	61,897			62,345			57,252			57,218			57,582					238,712			215,926
Income tax expense	12,885			13,983			13,167			12,956			12,445					52,991			49,815
Net income	49,012			48,362			44,085			44,262			45,137					185,721			166,111
Merger-related and other charges	(74		)	2,605			4,087			739			1,234					7,357			7,345
Income tax benefit of merger-related and other charges	17			(600		)	(940		)	(172		)	(604		)			(1,695		)	(1,494		)
Net income - operating⁽¹⁾	$	48,955		$	50,367		$	47,232		$	44,829		$	45,767		7		$	191,383		$	171,962		11

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.61		$	0.60		$	0.55		$	0.55		$	0.56		9		$	2.31		$	2.07		12
Diluted net income - operating ⁽¹⁾	0.61			0.63			0.59			0.56			0.57			7		2.38			2.14			11
Cash dividends declared	0.18			0.17			0.17			0.16			0.16			13		0.68			0.58			17
Book value	20.53			20.16			19.65			18.93			18.24			13		20.53			18.24			13
Tangible book value ⁽³⁾	16.28			15.90			15.38			14.93			14.24			14		16.28			14.24			14
Key performance ratios:
Return on common equity - GAAP ⁽²⁾⁽⁴⁾	12.07		%	12.16		%	11.45		%	11.85		%	12.08		%			11.89		%	11.60		%
Return on common equity - operating ^(1)(2)(4)	12.06			12.67			12.27			12.00			12.25					12.25			12.01
Return on tangible common equity - operating ^(1)(2)(3)(4)	15.49			16.38			15.88			15.46			15.88					15.81			15.69
Return on assets - GAAP ⁽⁴⁾	1.50			1.51			1.40			1.44			1.43					1.46			1.35
Return on assets - operating ⁽¹⁾⁽⁴⁾	1.50			1.58			1.50			1.45			1.45					1.51			1.40
Net interest margin (fully taxable equivalent) ⁽⁴⁾	3.93			4.12			4.12			4.10			3.97					4.07			3.91
Efficiency ratio - GAAP	54.87			55.64			57.28			55.32			56.73					55.77			57.31
Efficiency ratio - operating ⁽¹⁾	54.92			53.90			54.42			54.78			55.83					54.50			55.94
Equity to total assets	12.66			12.53			12.25			12.06			11.59					12.66			11.59
Tangible common equity to tangible assets ⁽³⁾	10.32			10.16			9.86			9.76			9.29					10.32			9.29

ASSET QUALITY
Nonperforming loans	$	35,341		$	30,832		$	26,597		$	23,624		$	23,778		49		$	35,341		$	23,778		49
Foreclosed properties	476			102			75			1,127			1,305			(64	)	476			1,305			(64	)
Total nonperforming assets (“NPAs”)	35,817			30,934			26,672			24,751			25,083			43		35,817			25,083			43
Allowance for loan losses	62,089			62,514			62,204			61,642			61,203			1		62,089			61,203			1
Net charge-offs	3,925			2,723			2,438			3,130			1,787			120		12,216			6,113			100
Allowance for loan losses to loans	0.70		%	0.70		%	0.70		%	0.73		%	0.73		%			0.70		%	0.73		%
Net charge-offs to average loans ⁽⁴⁾	0.18			0.12			0.11			0.15			0.09					0.14			0.07
NPAs to loans and foreclosed properties	0.41			0.35			0.30			0.29			0.30					0.41			0.30
NPAs to total assets	0.28			0.24			0.21			0.20			0.20					0.28			0.20

AVERAGE BALANCES ($ in millions)
Loans	$	8,890		$	8,836		$	8,670		$	8,430		$	8,306		7		$	8,708		$	8,170		7
Investment securities	2,486			2,550			2,674			2,883			3,004			(17	)	2,647			2,899			(9	)
Earning assets	11,832			11,568			11,534			11,498			11,534			3		11,609			11,282			3
Total assets	12,946			12,681			12,608			12,509			12,505			4		12,687			12,284			3
Deposits	10,924			10,531			10,493			10,361			10,306			6		10,579			10,000			6
Shareholders’ equity	1,623			1,588			1,531			1,478			1,420			14		1,556			1,380			13
Common shares - basic (thousands)	79,659			79,663			79,673			79,807			79,884			—		79,700			79,662			—
Common shares - diluted (thousands)	79,669			79,667			79,678			79,813			79,890			—		79,708			79,671			—

AT PERIOD END ($ in millions)
Loans	$	8,813		$	8,903		$	8,838		$	8,493		$	8,383		5		$	8,813		$	8,383		5
Investment securities	2,559			2,515			2,620			2,720			2,903			(12	)	2,559			2,903			(12	)
Total assets	12,916			12,809			12,779			12,506			12,573			3		12,916			12,573			3
Deposits	10,897			10,757			10,591			10,534			10,535			3		10,897			10,535			3
Shareholders’ equity	1,636			1,605			1,566			1,508			1,458			12		1,636			1,458			12
Common shares outstanding (thousands)	79,014			78,974			79,075			79,035			79,234			—		79,014			79,234			—

⁽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.
Selected Financial Information
For the Years Ended December 31,
(in thousands, except per share data)	2019			2018			2017			2016			2015
INCOME SUMMARY
Interest revenue	$	552,706		$	500,080		$	389,720		$	335,020		$	278,532
Interest expense	83,312			61,330			33,735			25,236			21,109
Net interest revenue	469,394			438,750			355,985			309,784			257,423
Provision for credit losses	13,150			9,500			3,800			(800		)	3,700
Noninterest income	104,713			92,961			88,260			93,697			72,529
Total revenue	560,957			522,211			440,445			404,281			326,252
Expenses	322,245			306,285			267,611			241,289			211,238
Income before income tax expense	238,712			215,926			172,834			162,992			115,014
Income tax expense	52,991			49,815			105,013			62,336			43,436
Net income	185,721			166,111			67,821			100,656			71,578
Merger-related and other charges	7,357			7,345			14,662			8,122			17,995
Income tax benefit of merger-related and other charges	(1,695		)	(1,494		)	(3,745		)	(3,074		)	(6,388		)
Impact of remeasurement of deferred tax asset resulting from 2017 Tax Cuts and Jobs Act	—			—			38,199			—			—
Impairment of deferred tax asset on cancelled non-qualified stock options	—			—			—			976			—
Release of disproportionate tax effects lodged in OCI	—			—			3,400			—			—
Net income - operating⁽¹⁾	$	191,383		$	171,962		$	120,337		$	106,680		$	83,185
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	2.31		$	2.07		$	0.92		$	1.40		$	1.09
Diluted net income - operating ⁽¹⁾	2.38			2.14			1.63			1.48			1.27
Cash dividends declared	0.68			0.58			0.38			0.30			0.22
Book value	20.53			18.24			16.67			15.06			14.02
Tangible book value⁽³⁾	16.28			14.24			13.65			12.95			12.06
Key performance ratios:
Return on common equity - GAAP ⁽²⁾	11.89		%	11.60		%	5.67		%	9.41		%	8.15		%
Return on common equity - operating ⁽¹⁾⁽²⁾	12.25			12.01			10.07			9.98			9.48
Return on tangible common equity - operating ^(1)(2)(3)	15.81			15.69			12.02			11.86			10.24
Return on assets - GAAP	1.46			1.35			0.62			1.00			0.85
Return on assets - operating ⁽¹⁾	1.51			1.40			1.09			1.06			0.98
Net interest margin (fully taxable equivalent)	4.07			3.91			3.52			3.36			3.30
Efficiency ratio - GAAP	55.77			57.31			59.95			59.80			63.96
Efficiency ratio - operating⁽¹⁾	54.50			55.94			56.67			57.78			58.51
Equity to total assets	12.66			11.59			10.94			10.05			10.58
Tangible common equity to tangible assets ⁽³⁾	10.32			9.29			9.14			8.77			9.15

ASSET QUALITY
Nonperforming loans	$	35,341		$	23,778		$	23,658		$	21,539		$	22,653
Foreclosed properties	476			1,305			3,234			7,949			4,883
Total nonperforming assets (NPAs)	35,817			25,083			26,892			29,488			27,536
Allowance for loan losses	62,089			61,203			58,914			61,422			68,448
Net charge-offs	12,216			6,113			5,998			6,766			6,259
Allowance for loan losses to loans	0.70		%	0.73		%	0.76		%	0.89		%	1.14		%
Net charge-offs to average loans	0.14			0.07			0.08			0.11			0.12
NPAs to loans and foreclosed properties	0.41			0.30			0.35			0.43			0.46
NPAs to total assets	0.28			0.20			0.23			0.28			0.29
AVERAGE BALANCES ($ in millions)
Loans	$	8,708		$	8,170		$	7,150		$	6,413		$	5,298
Investment securities	2,647			2,899			2,847			2,691			2,368
Earning assets	11,609			11,282			10,162			9,257			7,834
Total assets	12,687			12,284			11,015			10,054			8,462
Deposits	10,579			10,000			8,950			8,177			7,055
Shareholders’ equity	1,556			1,380			1,180			1,059			869
Common shares - basic (thousands)	79,700			79,662			73,247			71,910			65,488
Common shares - diluted (thousands)	79,708			79,671			73,259			71,915			65,492
AT PERIOD END ($ in millions)
Loans	$	8,813		$	8,383		$	7,736		$	6,921		$	5,995
Investment securities	2,559			2,903			2,937			2,762			2,656
Total assets	12,916			12,573			11,915			10,709			9,616
Deposits	10,897			10,535			9,808			8,638			7,873
Shareholders’ equity	1,636			1,458			1,303			1,076			1,018
Common shares outstanding (thousands)	79,014			79,234			77,580			70,899			71,484

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



UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information- Quarterly
	2019												2018
(in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter

Expense reconciliation
Expenses (GAAP)	$	81,424		$	82,924		$	81,813		$	76,084		$	78,242
Merger-related and other charges	74			(2,605		)	(4,087		)	(739		)	(1,234		)
Expenses - operating	$	81,498		$	80,319		$	77,726		$	75,345		$	77,008

Net income reconciliation
Net income (GAAP)	$	49,012		$	48,362		$	44,085		$	44,262		$	45,137
Merger-related and other charges	(74		)	2,605			4,087			739			1,234
Income tax benefit of merger-related and other charges	17			(600		)	(940		)	(172		)	(604		)
Net income - operating	$	48,955		$	50,367		$	47,232		$	44,829		$	45,767

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.61		$	0.60		$	0.55		$	0.55		$	0.56
Merger-related and other charges	—			0.03			0.04			0.01			0.01
Diluted income per common share - operating	$	0.61		$	0.63		$	0.59		$	0.56		$	0.57

Book value per common share reconciliation
Book value per common share (GAAP)	$	20.53		$	20.16		$	19.65		$	18.93		$	18.24
Effect of goodwill and other intangibles	(4.25		)	(4.26		)	(4.27		)	(4.00		)	(4.00		)
Tangible book value per common share	$	16.28		$	15.90		$	15.38		$	14.93		$	14.24

Return on tangible common equity reconciliation
Return on common equity (GAAP)	12.07		%	12.16		%	11.45		%	11.85		%	12.08		%
Merger-related and other charges	(0.01		)	0.51			0.82			0.15			0.17
Return on common equity - operating	12.06			12.67			12.27			12.00			12.25
Effect of goodwill and other intangibles	3.43			3.71			3.61			3.46			3.63
Return on tangible common equity - operating	15.49		%	16.38		%	15.88		%	15.46		%	15.88		%

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

Efficiency ratio reconciliation
Efficiency ratio (GAAP)	54.87		%	55.64		%	57.28		%	55.32		%	56.73		%
Merger-related and other charges	0.05			(1.74		)	(2.86		)	(0.54		)	(0.90		)
Efficiency ratio - operating	54.92		%	53.90		%	54.42		%	54.78		%	55.83		%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	12.66		%	12.53		%	12.25		%	12.06		%	11.59		%
Effect of goodwill and other intangibles	(2.34		)	(2.37		)	(2.39		)	(2.30		)	(2.30		)
Tangible common equity to tangible assets	10.32		%	10.16		%	9.86		%	9.76		%	9.29		%



UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information- Annual
	For the Twelve Months Ended December 31,
(in thousands, except per share data)	2019			2018			2017			2016			2015
Expense reconciliation
Expenses (GAAP)	$	322,245		$	306,285		$	267,611		$	241,289		$	211,238
Merger-related and other charges	(7,357		)	(7,345		)	(14,662		)	(8,122		)	(17,995		)
Expenses - operating	$	314,888		$	298,940		$	252,949		$	233,167		$	193,243

Net income reconciliation
Net income (GAAP)	$	185,721		$	166,111		$	67,821		$	100,656		$	71,578
Merger-related and other charges	7,357			7,345			14,662			8,122			17,995
Income tax benefit of merger-related and other charges	(1,695		)	(1,494		)	(3,745		)	(3,074		)	(6,388		)
Impact of tax reform on remeasurement of deferred tax asset	—			—			38,199			—			—
Impairment of deferred tax asset on canceled non-qualified stock options	—			—			—			976			—
Release of disproportionate tax effects lodged in OCI	—			—			3,400			—			—
Net income - operating	$	191,383		$	171,962		$	120,337		$	106,680		$	83,185

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	2.31		$	2.07		$	0.92		$	1.40		$	1.09
Merger-related and other charges	0.07			0.07			0.14			0.07			0.18
Impact of tax reform on remeasurement of deferred tax asset	—			—			0.52			—			—
Impairment of deferred tax asset on canceled non-qualified stock options	—			—			—			0.01			—
Release of disproportionate tax effects lodged in OCI	—			—			0.05			—			—
Diluted income per common share - operating	$	2.38		$	2.14		$	1.63		$	1.48		$	1.27

Book value per common share reconciliation
Book value per common share (GAAP)	$	20.53		$	18.24		$	16.67		$	15.06		$	14.02
Effect of goodwill and other intangibles	(4.25		)	(4.00		)	(3.02		)	(2.11		)	(1.96		)
Tangible book value per common share	$	16.28		$	14.24		$	13.65		$	12.95		$	12.06

Return on tangible common equity reconciliation
Return on common equity (GAAP)	11.89		%	11.60		%	5.67		%	9.41		%	8.15		%
Merger-related and other charges	0.36			0.41			0.92			0.48			1.33
Impact of tax reform on remeasurement of deferred tax asset	—			—			3.20			—			—
Impairment of deferred tax asset on canceled non-qualified stock options	—			—			—			0.09			—
Release of disproportionate tax effects lodged in OCI	—			—			0.28			—			—
Return on common equity - operating	12.25			12.01			10.07			9.98			9.48
Effect of goodwill and other intangibles	3.56			3.68			1.95			1.88			0.76
Return on tangible common equity - operating	15.81		%	15.69		%	12.02		%	11.86		%	10.24		%

Return on assets reconciliation
Return on assets (GAAP)	1.46		%	1.35		%	0.62		%	1.00		%	0.85		%
Merger-related and other charges	0.05			0.05			0.09			0.05			0.13
Impact of tax reform on remeasurement of deferred tax asset	—			—			0.35			—			—
Impairment of deferred tax asset on canceled non-qualified stock options	—			—			—			0.01			—
Release of disproportionate tax effects lodged in OCI	—			—			0.03			—			—
Return on assets - operating	1.51		%	1.40		%	1.09		%	1.06		%	0.98		%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)	55.77		%	57.31		%	59.95		%	59.80		%	63.96		%
Merger-related and other charges	(1.27		)	(1.37		)	(3.28		)	(2.02		)	(5.45		)
Efficiency ratio - operating	54.50		%	55.94		%	56.67		%	57.78		%	58.51		%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	12.66		%	11.59		%	10.94		%	10.05		%	10.58		%
Effect of goodwill and other intangibles	(2.34		)	(2.30		)	(1.80		)	(1.28		)	(1.33		)
Effect of preferred equity	—			—			—			—			(0.10		)
Tangible common equity to tangible assets	10.32		%	9.29		%	9.14		%	8.77		%	9.15		%



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
	2019								2018		Linked Quarter Change			Year over Year Change
(in millions)	Fourth Quarter		Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Linked Quarter Change			Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,720	$	1,692	$	1,658	$	1,620	$	1,648	$	28		$	72
Income producing commercial RE	2,008		1,934		1,939		1,867		1,812		74			196
Commercial & industrial	1,221		1,271		1,299		1,284		1,278		(50		)	(57		)
Commercial construction	976		1,001		983		866		796		(25		)	180
Equipment financing	745		729		674		606		565		16			180
Total commercial	6,670		6,627		6,553		6,243		6,099		43			571
Residential mortgage	1,118		1,121		1,108		1,064		1,049		(3		)	69
Home equity lines of credit	661		669		675		684		694		(8		)	(33		)
Residential construction	236		229		219		200		211		7			25
Consumer	128		257		283		302		330		(129		)	(202		)
Total loans	$	8,813	$	8,903	$	8,838	$	8,493	$	8,383	$	(90	)	$	430

LOANS BY MARKET
North Georgia	$	967	$	1,002	$	1,002	$	970	$	981	$	(35	)	$	(14	)
Atlanta	1,762		1,740		1,745		1,524		1,507		22			255
North Carolina	1,156		1,117		1,084		1,074		1,072		39			84
Coastal Georgia	631		611		604		603		588		20			43
Gainesville	246		246		244		243		247		—			(1		)
East Tennessee	421		435		446		458		477		(14		)	(56		)
South Carolina	1,708		1,705		1,674		1,674		1,645		3			63
Commercial Banking Solutions	1,922		1,916		1,884		1,766		1,658		6			264
Indirect auto	—		131		155		181		208		(131		)	(208		)
Total loans	$	8,813	$	8,903	$	8,838	$	8,493	$	8,383	$	(90	)	$	430



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)	2019		2018		2017		2016		2015
LOANS BY CATEGORY
Owner occupied commercial RE	$	1,720	$	1,648	$	1,924	$	1,650	$	1,571
Income producing commercial RE	2,008		1,812		1,595		1,282		1,021
Commercial & industrial	1,221		1,278		1,131		1,070		785
Commercial construction	976		796		712		634		518
Equipment financing	745		565		—		—		—
Total commercial	6,670		6,099		5,362		4,636		3,895
Residential mortgage	1,118		1,049		974		857		764
Home equity lines of credit	661		694		731		655		589
Residential construction	236		211		183		190		176
Consumer	128		330		486		583		571
Total loans	$	8,813	$	8,383	$	7,736	$	6,921	$	5,995

LOANS BY MARKET
North Georgia	$	967	$	981	$	1,019	$	1,097	$	1,125
Atlanta	1,762		1,507		1,510		1,399		1,259
North Carolina	1,156		1,072		1,049		545		549
Coastal Georgia	631		588		630		581		537
Gainesville	246		247		248		248		254
East Tennessee	421		477		475		504		504
South Carolina	1,708		1,645		1,486		1,233		819
Commercial Banking Solutions	1,922		1,658		961		855		492
Indirect auto	—		208		358		459		456
Total loans	$	8,813	$	8,383	$	7,736	$	6,921	$	5,995



UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
	2019
(in thousands)	Fourth Quarter		Third Quarter		Second Quarter
NONACCRUAL LOANS
Owner occupied RE	$	10,544	$	8,430	$	8,177
Income producing RE	1,996		2,030		1,331
Commercial & industrial	2,545		2,625		2,366
Commercial construction	2,277		1,894		1,650
Equipment financing	3,141		1,974		2,047
Total commercial	20,503		16,953		15,571
Residential mortgage	10,567		9,475		8,012
Home equity lines of credit	3,173		3,065		1,978
Residential construction	939		597		494
Consumer	159		742		542
Total	$	35,341	$	30,832	$	26,597



	2019
	Fourth Quarter					Third Quarter					Second 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	$	(208	)	(0.05	)%	$	(39	)	(0.01	)%	$	(58	)	(0.01	)%
Income producing RE	95			0.02		431			0.09		241			0.05
Commercial & industrial	1,809			0.58		691			0.21		1,141			0.35
Commercial construction	(140		)	(0.06	)	(247		)	(0.10	)	(162		)	(0.07	)
Equipment financing	1,550			0.84		1,174			0.67		890			0.56
Total commercial	3,106			0.19		2,010			0.12		2,052			0.13
Residential mortgage	89			0.03		158			0.06		(125		)	(0.05	)
Home equity lines of credit	198			0.12		83			0.05		(111		)	(0.07	)
Residential construction	(24		)	(0.04	)	(5		)	(0.01	)	199			0.38
Consumer	556			0.90		477			0.70		423			0.58
Total	$	3,925		0.18		$	2,723		0.12		$	2,438		0.11

⁽¹⁾ Annualized.

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

(in thousands, except share and per share data)	December 31, 2019			December 31, 2018
ASSETS
Cash and due from banks	$	125,844		$	126,083
Interest-bearing deposits in banks	389,362			201,182
Cash and cash equivalents	515,206			327,265
Debt securities available-for-sale	2,274,581			2,628,467
Debt securities held-to-maturity (fair value $287,904 and $268,803)	283,533			274,407
Loans held for sale, at fair value	58,484			18,935
Loans, net of unearned income	8,812,553			8,383,401
Less allowance for loan losses	(62,089		)	(61,203		)
Loans, net	8,750,464			8,322,198
Premises and equipment, net	215,976			206,140
Bank owned life insurance	202,664			192,616
Accrued interest receivable	32,660			35,413
Net deferred tax asset	34,059			64,224
Derivative financial instruments	35,007			24,705
Goodwill and other intangible assets	342,247			324,072
Other assets	171,135			154,750
Total assets	$	12,916,016		$	12,573,192
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	3,477,979		$	3,210,220
NOW and interest-bearing demand	2,461,895			2,369,631
Money market	2,230,628			2,002,670
Savings	706,467			669,886
Time	1,859,574			1,598,391
Brokered	160,701			683,715
Total deposits	10,897,244			10,534,513
Federal Home Loan Bank advances	—			160,000
Long-term debt	212,664			267,189
Derivative financial instruments	15,516			26,433
Accrued expenses and other liabilities	154,900			127,503
Total liabilities	11,280,324			11,115,638
Shareholders' equity:
Common stock, $1 par value; 150,000,000 shares authorized; 79,013,729 and 79,234,077 shares issued and outstanding	79,014			79,234
Common stock issuable; 664,640 and 674,499 shares	11,491			10,744
Capital surplus	1,496,641			1,499,584
Retained earnings (accumulated deficit)	40,152			(90,419		)
Accumulated other comprehensive income (loss)	8,394			(41,589		)
Total shareholders’ equity	1,635,692			1,457,554
Total liabilities and shareholders’ equity	$	12,916,016		$	12,573,192

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

	Three Months Ended December 31,					Twelve Months Ended December 31,
(in thousands, except per share data)	2019			2018		2019			2018
Interest revenue:
Loans, including fees	$	118,464		$	112,087	$	476,039		$	420,383
Investment securities, including tax exempt of $1,155 and $1,140, and $4,564 and $4,189	16,846			21,237		74,484			77,685
Deposits in banks and short-term investments	1,109			530		2,183			2,012
Total interest revenue	136,419			133,854		552,706			500,080

Interest expense:
Deposits:
NOW and interest-bearing demand	3,382			3,166		13,665			7,649
Money market	4,883			3,985		18,983			11,838
Savings	34			33		149			150
Time	8,372			7,006		34,059			19,906
Deposits	16,671			14,190		66,856			39,543
Short-term borrowings	—			340		838			1,112
Federal Home Loan Bank advances	2			794		2,697			6,345
Long-term debt	3,108			3,651		12,921			14,330
Total interest expense	19,781			18,975		83,312			61,330
Net interest revenue	116,638			114,879		469,394			438,750
Provision for credit losses	3,500			2,100		13,150			9,500
Net interest revenue after provision for credit losses	113,138			112,779		456,244			429,250

Noninterest income:
Service charges and fees	9,368			9,166		36,797			35,997
Mortgage loan gains and related fees	9,395			3,082		27,145			19,010
Brokerage fees	1,526			1,593		6,150			5,191
Gains from other loan sales, net	2,455			2,493		6,867			9,277
Securities (losses) gains, net	(903		)	646		(1,021		)	(656		)
Other	8,342			6,065		28,775			24,142
Total noninterest income	30,183			23,045		104,713			92,961
Total revenue	143,321			135,824		560,957			522,211

Noninterest expenses:
Salaries and employee benefits	50,279			45,631		196,440			181,015
Occupancy	5,926			5,842		23,350			22,781
Communications and equipment	6,380			6,206		24,613			21,277
FDIC assessments and other regulatory charges	1,330			1,814		4,901			8,491
Professional fees	5,098			4,105		17,028			15,540
Postage, printing and supplies	1,637			1,520		6,370			6,416
Advertising and public relations	1,914			1,650		6,170			5,991
Amortization of intangibles	1,093			1,420		4,938			6,846
Merger-related and other charges	(74		)	965		6,907			5,414
Other	7,841			9,089		31,528			32,514
Total noninterest expenses	81,424			78,242		322,245			306,285
Net income before income taxes	61,897			57,582		238,712			215,926
Income tax expense	12,885			12,445		52,991			49,815
Net income	$	49,012		$	45,137	$	185,721		$	166,111

Net income available to common shareholders	$	48,617		$	44,801	$	184,346		$	164,927

Net income per common share:
Basic	$	0.61		$	0.56	$	2.31		$	2.07
Diluted	0.61			0.56		2.31			2.07
Weighted average common shares outstanding:
Basic	79,659			79,884		79,700			79,662
Diluted	79,669			79,890		79,708			79,671

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,



	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⁾	$	8,890,272		$	118,262	5.28	%	$	8,306,270		$	112,020	5.35	%
Taxable securities⁽³⁾	2,306,065			15,691		2.72		2,843,085			20,097		2.83
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾	179,744			1,551		3.45		161,284			1,535		3.81
Federal funds sold and other interest-earning assets	456,055			1,586		1.39		222,931			845		1.52
Total interest-earning assets (FTE)	11,832,136			137,090		4.60		11,533,570			134,497		4.63

Noninterest-earning assets:
Allowance for loan losses	(63,601		)					(61,992		)
Cash and due from banks	120,936							125,066
Premises and equipment	219,487							214,590
Other assets ⁽³⁾	836,586							694,215
Total assets	$	12,945,544						$	12,505,449

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,398,396		3,382		0.56		$	2,134,828		3,166		0.59
Money market	2,321,352			4,883		0.83		2,126,840			3,985		0.74
Savings	704,454			34		0.02		675,265			33		0.02
Time	1,880,174			7,975		1.68		1,584,011			4,297		1.08
Brokered time deposits	85,781			397		1.84		490,748			2,709		2.19
Total interest-bearing deposits	7,390,157			16,671		0.89		7,011,692			14,190		0.80
Federal funds purchased and other borrowings	—			—		—		55,095			340		2.45
Federal Home Loan Bank advances	435			2		1.82		140,869			794		2.24
Long-term debt	232,726			3,108		5.30		272,313			3,651		5.32
Total borrowed funds	233,161			3,110		5.29		468,277			4,785		4.05
Total interest-bearing liabilities	7,623,318			19,781		1.03		7,479,969			18,975		1.01

Noninterest-bearing liabilities:
Noninterest-bearing deposits	3,533,746							3,294,385
Other liabilities	165,148							311,461
Total liabilities	11,322,212							11,085,815
Shareholders’ equity	1,623,332							1,419,634
Total liabilities and shareholders’ equity	$	12,945,544						$	12,505,449

Net interest revenue (FTE)				$	117,309						$	115,522
Net interest-rate spread (FTE)						3.57	%						3.62	%
Net interest margin (FTE) ⁽⁴⁾						3.93	%						3.97	%


⁽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 $36.0 million in 2019 and unrealized losses of $59.5 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 Twelve Months Ended December 31,



	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⁾	$	8,708,035		$	475,803	5.46	%	$	8,170,143		$	420,001	5.14	%
Taxable securities ⁽³⁾	2,475,102			69,920		2.82		2,745,715			73,496		2.68
Tax-exempt securities (FTE)⁽¹⁾⁽³⁾	171,549			6,130		3.57		152,855			5,641		3.69
Federal funds sold and other interest-earning assets	254,370			3,499		1.38		213,137			2,968		1.39
Total interest-earning assets (FTE)	11,609,056			555,352		4.78		11,281,850			502,106		4.45

Non-interest-earning assets:
Allowance for loan losses	(62,900		)					(61,443		)
Cash and due from banks	121,649							135,345
Premises and equipment	220,523							216,646
Other assets ⁽³⁾	798,649							711,671
Total assets	$	12,686,977						$	12,284,069

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	2,249,713		13,665		0.61		$	2,107,831		7,649		0.36
Money market	2,221,478			18,983		0.85		2,117,216			11,838		0.56
Savings	690,028			149		0.02		672,735			150		0.02
Time	1,791,319			28,313		1.58		1,547,221			12,585		0.81
Brokered time deposits	240,646			5,746		2.39		347,072			7,321		2.11
Total interest-bearing deposits	7,193,184			66,856		0.93		6,792,075			39,543		0.58
Federal funds purchased and other borrowings	33,504			838		2.50		57,376			1,112		1.94
Federal Home Loan Bank advances	106,973			2,697		2.52		328,871			6,345		1.93
Long-term debt	247,732			12,921		5.22		290,004			14,330		4.94
Total borrowed funds	388,209			16,456		4.24		676,251			21,787		3.22
Total interest-bearing liabilities	7,581,393			83,312		1.10		7,468,326			61,330		0.82

Noninterest-bearing liabilities:
Noninterest-bearing deposits	3,385,431							3,207,625
Other liabilities	164,550							227,980
Total liabilities	11,131,374							10,903,931
Shareholders’ equity	1,555,603							1,380,138
Total liabilities and shareholders’ equity	$	12,686,977						$	12,284,069

Net interest revenue (FTE)				$	472,040						$	440,776
Net interest-rate spread (FTE)						3.68	%						3.63	%
Net interest margin (FTE) ⁽⁴⁾						4.07	%						3.91	%


⁽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 $12.8 million in 2019 and unrealized losses of $45.2 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 $12.9 billion in assets, and 149 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.

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ucbi4qinvestorpresentati

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. $12.9 $8.8 Committed to Service Since 1950 Billion in Assets Billion in Total Loans $2.4 $10.9 Billion in Total Deposits Billion Market Cap 186% Price / TBV 1.50% Return on average assets - 13.2x operating(1) Price / EPS (2020E) Full Service Branch Network Extended Navitas and SBA Markets 54.9% 13.0% 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 $132.3 million in 54.9%  Top 10 market share in GA and SC 2019 originations and includes both an Efficiency ratio – operating(1)  142 branch locations, 7 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 8.5% of loans 0.61% 0.28% Cost of Deposits One of the lowest cost of NPAs / Assets deposit bases in the Market data as of January 17, 2020 (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

12.1% Return on common equity - $0.61 GAAP Earnings per share - 15.5% 4Q19 Highlights GAAP Return on tangible common equity - operating (1) Earnings Per Share Return on Assets $0.63 1.58% $0.60 $0.61 $0.61 $0.61 13% $0.56 $0.57 1.51% 1.50%1.50% Earnings per share - YOY growth in (1) 1.45% operating, up 7% YOY Book value per share 1.43% 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 GAAP Operating (1) GAAP Operating (1) 1.50% 14% YOY growth in Tangible Return on assets - GAAP book value per share Book Value Per Share Dividends Per Share $20.16 $20.53 $0.68 $18.24 $0.58 $15.90 $16.28 Annualized 4Q EOP $14.24 $0.38 1.50% loan growth of Return on assets - operating (1) 2%, excluding indirect auto of $131 mm 4Q18 3Q19 4Q19 2017 2018 2019 GAAP Operating (1) Dividends per share Annualized 4Q EOP $0.18 deposit growth of Quarterly Dividend, 5% or $140 mm up 13% YOY (1) See non-GAAP reconciliation table slides at the end of the exhibits for a 4 reconciliation of operating performance measures to GAAP performance

Net Interest Revenue / Margin(1) $ in millions $119.3 $116.6 $114.9  Net interest revenue decreased $2.7 mm (2%) vs. 3Q19 and increased $1.7 mm (2%) vs. 4Q18  Net interest margin decreased 19 bps from 3Q19 and decreased 4 bps YoY  Approximately 10 bps of the decline in margin from 3Q19 was due to the September and October 2019 Fed rate cuts  Accretable yield contributed $3.4 mm or 11 bps to 4Q19 NIM vs. 15 bps in 3Q19 4.12%  4Q19 had an increase of $242 mm in average public 3.97% 3.93% deposit balances vs. 3Q19, which were invested in overnight accounts at narrow spreads that hurt margin by approximately 5 bps  Benefited from organic loan growth, a mix change away from wholesale funding, and strong low cost deposit growth 4Q18 3Q19 4Q19 Net Interest Revenue Net Interest Margin (1) (1) Net interest margin is calculated on a fully-taxable equivalent basis 5

Valuable Deposit Mix 4Q19 Total Deposits $10.9 billion  32% of deposits are Noninterest bearing Time deposits 18% DDA  UCBI cost of deposits down 2 bps to 0.61% 32% in 4Q19  UCBI cost of deposits significantly lower than Savings 6% KRX peer levels (0.63% in 3Q19 vs. KRX peers at 0.85%)  Total deposits up $140 mm from 3Q19; public deposits drove the increase – up $273 mm in 4Q19, offset by lower Demand and Brokered 21% deposits MMDA 23% NOW Note: Peer comparison banks comprise the KBW Regional Bank Index (ticker: KRX) 6 Source: S&P Global Market Intelligence

Strong Core Transaction Deposit Growth $ in billions $7.503 $7.464 $7.399  Noninterest bearing deposits increased $266 mm from 4Q18, which drove the majority of core transaction growth  While core transaction deposits were down $39 mm from 3Q19, total core deposits increased $207 mm from 3Q19 to $10.4 bn and increased $784 mm YOY  Total brokered deposits down $62 mm from 3Q19 and down $523 mm from 4Q18 as our need for wholesale funding sources continues to decline 2Q19 3Q19 4Q19 Note: Transaction accounts include demand deposits, NOW, money market and savings accounts 7

Loans 4Q19 Total Loans $8.8 billion  Linked-quarter loan growth was $41 mm, or 2% annualized, excluding indirect auto of $131 mm Residential Construction Home Equity 3%  Full year EOP loan growth excluding indirect 7% auto runoff and sale and the addition of First Residential Madison was 6% Mortgage (1) 13% C&I  4Q19 included $20 mm of Navitas loan sales 42% at a 6.5% gain Other 1% Consumer  Sold $103 mm of the indirect auto loan portfolio at year-end  Diversified portfolio, weighted towards C&I 23% CRE  Well within regulatory guidance on construction and CRE levels  The 100%/300% ratios stand at 83% and 210% of 11% Tier 1 risk-based capital, respectively Commercial Construction (1) C&I includes commercial and industrial loans, owner-occupied CRE loans and equipment finance loans 8

Noninterest Income $ in millions $30.2 $29.0 $2.5 $1.6 Linked Quarter  Fees up $1.2 mm $23.0  Mortgage fees up $0.7 mm from 3Q19 as originations and $8.7 $9.4 loan sales continued at Q3’s pace despite weaker $2.5 seasonality and also benefitted from a $1.2 mm positive mark on the MSR asset $3.1  SBA fees up $0.20 mm or 12% from 3Q19 to $1.8 mm $1.7 $1.5  Sold $20.0 mm of equipment finance loans at a 6.5% gain $1.6 during 4Q19, which contributed $1.3 mm to noninterest income $7.1 $6.6 $7.4  4Q19 included three non-recurring items including a $1.6 mm BOLI gain, $0.9 mm of security losses and $0.7 mm loss on the sale of the indirect auto portfolio Year-over-Year $9.2 $9.9 $9.4  Fees up $7.2 mm  Rate locks up 64% compared to last year ($411 mm in 4Q19 vs. $251 mm in 4Q18)  4Q19 SBA loan sales of $25.9 mm, down 25% from $34.7 4Q18 3Q19 4Q19 mm in 4Q18 due to strategic change to hold more production Service Charges Other Brokerage Mortgage SBA, USDA, Navitas 9

Expense Discipline $ in millions $82.9 $81.4 $81.5 $80.3 $78.2 Linked Quarter $77.0  GAAP expenses decreased 1.8% while operating expenses increased 1.5% Year-over-Year  Market expansions and acquisitions drove GAAP 56.7% and operating expenses higher by 4.1% and 5.8%, respectively 55.6%  Continued cost control efforts help drive GAAP and operating efficiency ratio improvement of 186 bps and 91 55.8% 54.9% bps, respectively 54.9% 53.9% 4Q18 3Q19 4Q19 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 10 measures to GAAP performance measures

Credit Quality Provision for Credit Losses Net Charge-Offs as % $ in millions of Average Loans $3.10 $3.50 $2.10 0.18% 0.12% 0.09% 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 Allowance for Loan Losses Non-Performing Assets as % of Total Assets 0.73% 0.70% 0.70% 0.28% 0.24% 0.20% 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 11

Current Expected Credit Losses (CECL)  On January 1st, CECL replaces the current incurred loss methodology with a life-of-loan loss concept  We expect that the day one impact of adopting the new standard will increase our allowance for credit losses by approximately 13% to about $74 mm  The main drivers for the increase are equipment finance loans and in the reserve for unfunded commitments  Our model uses a one year forecast and a two year reversion period  We expect a modest impact to equity with CECL adoption Expected Impact of CECL Projected Impact of CECL (DAY 1) ACL increase $8.5 mm +/- 10% Reclass from discount $4.3 mm Adjust to equity (net of tax)* $3.2 mm *Subject to refinement in our 1Q20 10Q filing 12

Capital Ratios Holding Company 4Q18 3Q19 4Q19* Common Equity Tier 1 Capital 12.2 % 12.4 % 13.0 % Tier 1 Risk-Based Capital 12.4 12.7 13.2 Total Risk-Based Capital 14.3 14.5 15.0 Leverage 9.6 10.2 10.3 Tangible Common Equity to 9.3 10.2 10.3 Tangible Assets  All regulatory capital ratios significantly above “well-capitalized”  Quarterly dividend of $0.18 per share (up 13% YoY)  No share repurchases in 4Q19; repurchased a total of 500,495 shares during 2019 at an average price of $26.01 for a total of $13.0 mm *4Q19 regulatory capital ratios are preliminary 13

Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q18 1Q19 2Q19 3Q19 4Q19 (1) (1) (1) (1) (1) Expenses Expenses - GAAP $ 78,242 $ 76,084 $ 81,813 $ 82,924 $ 81,424 Merger-related and other charges (1,234) (739) (4,087) (2,605) 74 Expenses - Operating $ 77,008 $ 75,345 $ 77,726 $ 80,319 $ 81,498 Diluted Earnings per share Diluted earnings per share - GAAP $ 0.56 $ 0.55 $ 0.55 $ 0.60 $ 0.61 Merger-related and other charges 0.01 0.01 0.04 0.03 - Diluted earnings per share - Operating 0.57 0.56 0.59 0.63 0.61 Book Value per share Book Value per share - GAAP $ 18.24 $ 18.93 $ 19.65 $ 20.16 $ 20.53 Effect of goodwill and other intangibles (4.00) (4.00) (4.27) (4.26) (4.25) Tangible book value per share $ 14.24 $ 14.93 $ 15.38 $ 15.90 $ 16.28 Return on Tangible Common Equity Return on common equity - GAAP 12.08 % 11.85 % 11.45 % 12.16 % 12.07 % Effect of merger-related and other charges 0.17 0.15 0.82 0.51 (0.01) Return on common equity - Operating 12.25 12.00 12.27 12.67 12.06 Effect of goodwill and intangibles 3.63 3.46 3.61 3.71 3.43 Return on tangible common equity - Operating 15.88 % 15.46 % 15.88 % 16.38 % 15.49 % (1) Merger-related and other charges for 3Q19, 2Q19, 1Q19 and 4Q18 include $64 thousand, $193 thousand, $193 thousand and $269 thousand, respectively, of intangible amortization resulting from payments made to executives under their change of control agreements. The resulting intangible 15 assets were being amortized over 12 to 24 months. No charges in 4Q19.

Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q18 1Q19 2Q19 3Q19 4Q19 (1) (1) (1) (1) (1) Return on Assets Return on assets - GAAP 1.43 % 1.44 % 1.40 % 1.51 % 1.50 % Merger-related and other charges 0.02 0.01 0.10 0.07 - Return on assets - Operating 1.45 % 1.45 % 1.50 % 1.58 % 1.50 % Efficiency Ratio Efficiency Ratio - GAAP 56.73 % 55.32 % 57.28 % 55.64 % 54.87 % Merger-related and other charges (0.90) (0.54) (2.86) (1.74) 0.05 Efficiency Ratio - Operating 55.83 % 54.78 % 54.42 % 53.90 % 54.92 % Tangible common equity to tangible assets Common Equity to assets ratio - GAAP 11.59 % 12.06 % 12.26 % 12.53 % 12.66 % Effect of goodwill and intangibles (2.30) (2.30) (2.40) (2.37) (2.34) Tangible common equity to tangible assets ratio 9.29 % 9.76 % 9.86 % 10.16 % 10.32 % (1) Merger-related and other charges for 3Q19, 2Q19, 1Q19 and 4Q18 include $64 thousand, $193 thousand, $193 thousand and $269 thousand, respectively, of intangible amortization resulting from payments made to executives under their change of control agreements. The resulting intangible 16 assets were being amortized over 12 to 24 months. No charges in 4Q19.