View:
Download DOC
Download PDF
Download XLS
Download XBRL
0000857855 false 0000857855 2020-10-20 2020-10-20 0000857855 us-gaap:CommonStockMember 2020-10-20 2020-10-20 0000857855 ucbi:DepositarySharesMember 2020-10-20 2020-10-20 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

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 20, 2020

 

UNITED COMMUNITY BANKS, INC.

(Exact name of registrant as specified in its charter)

 

Georgia No. 001-35095 No. 58-1807304
(State or other jurisdiction of (Commission File Number) (IRS Employer
 incorporation)   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
Depositary shares, each representing 1/1,000th interest in a share of Series I Non-Cumulative Preferred Stock   UCBIO   Nasdaq Global Select Market

  

Indicate by check mark whether the registrant is an emerging growth company 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 20, 2020, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the third quarter of 2020. 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 21, 2020, 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 2020. 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 20, 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: October 20, 2020  

 

 

 

Exhibit 99.1

 

 

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

Strong Financial Performance and Continued Business Expansion

 

GREENVILLE, SC – October 20, 2020 - United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported third quarter financial results, including solid year-over-year loan and deposit growth and record operating efficiency. United delivered net income of $47.6 million and pre-tax pre-provision income of $81.2 million. Diluted earnings per share of $0.52 for the quarter represented a decrease of $0.08 or 13%, from a year ago. This decline is largely due to an increase in credit loss provisioning associated with loan growth and the acquisition of Seaside National Bank & Trust (Seaside) along with net interest margin declines largely driven by declines in market interest rates. Compared to the second quarter, diluted earnings per share were up by $0.20 or 63%. Excluding merger-related and other charges, diluted operating earnings per share were $0.55, also down 13% from last year, but up $0.23 per share or 72% compared to second quarter. United’s GAAP return on assets (ROA) was 1.07% and its return on common equity was 10.1% for the quarter. On an operating basis, United’s ROA was 1.14% and its return on tangible common equity was 13.5%. On a pre-tax, pre-provision basis, and excluding merger-related and other charges, ROA was 1.93%.

 

Chairman and CEO Lynn Harton stated, “While the future economic and operating environment remains uncertain, I am pleased with the financial strength and resilience of the company and the dedication of our employees who consistently provide outstanding customer service. Our markets continue to recover from the economic effects of the pandemic and I am pleased to report that loan payment deferrals have declined from a peak of $1.9 billion, or 15.9% of the total loan portfolio at June 30, 2020 to $365 million, or 3.1% of the total loan portfolio at September 30, 2020.”

 

Harton continued, “Our acquisition of Seaside, which closed on July 1st, positions us well in attractive Florida markets and we are pleased with the talent of the Seaside team and the deep relationships they have built with their clients. We plan to pilot Seaside’s high net worth offering of asset management and trust services in select markets of United’s footprint in the late fourth quarter. Additionally, we have made solid progress on the business integration and are already moving forward with additional products, including mortgage, middle market, commercial real estate, SBA, asset-based and non-profit lending, to compliment Seaside’s product offerings. We are proud to welcome Seaside to the United team.”

 

 

 

 

Total loans increased by $1.7 billion during the quarter—primarily driven by the acquisition of Seaside. Excluding the effects of the acquisition, core organic loan growth was 8% annualized. Core transaction deposits grew by $1.7 billion during the quarter, with $1.3 billion resulting from the Seaside acquisition, supplemented by approximately $400 million in organic growth. United’s cost of deposits decreased by 13 basis points to 0.25%. The net interest margin decreased 15 basis points from the second quarter due to a combination of factors, including lower overall market rates.

 

Mr. Harton concluded, “We are focused on our long-term goal of remaining a top performer in our peer group. While this is a difficult environment in which to forecast future economic conditions, we are encouraged by increasing business activity in our markets and stable credit performance in our portfolio to date. Our strong balance sheet position gives us the ability to continue to support our customers and communities, and we believe we will be well positioned to be able to take advantage of expansion opportunities in the future.”

 

Third Quarter 2020 Financial Highlights:

 

•EPS decreased by 13% compared to last year on both a GAAP and operating basis; compared to second quarter, EPS increased by 63% on a GAAP basis and 72% on an operating basis

 

•Return on assets of 1.07%, or 1.14% excluding merger-related and other charges

 

•Pre-tax, pre-provision return on assets of 1.86%, or 1.93% excluding merger-related and other charges

 

•Return on common equity of 10.1%

 

•Return on tangible common equity of 13.5%, excluding merger-related and other charges

 

•A provision for credit losses of $21.8 million of which $10.7 million is attributable to establishing an allowance for credit losses for Seaside’s acquired loans

 

•Loan production of $1.0 billion and loan growth of $1.7 billion with $1.4 billion attributable to loans acquired from Seaside and core loan growth at an annualized rate of 8% for the quarter

 

•Core transaction deposits were up $1.7 billion with $1.3 billion attributable to Seaside and approximately $400 million in organic growth, which represents a 15% annualized growth rate for the quarter

 

•Net interest margin of 3.27% was down 15 basis points from the second quarter, reflecting the low rate environment, the Seaside acquisition, and increasing balance sheet liquidity

 

•Record mortgage rate locks of $910 million, which is $108 million or 13% higher than the previous record set in the second quarter; this compares to $508 million a year ago

 

•Noninterest income was up $7.7 million on a linked quarter basis, excluding net securities gains; Seaside contributed nearly $2.5 million of the increase and mortgage loan and related fees were up $1.5 million, primarily driven by record mortgage rate locks and production

 

•Efficiency ratio of 54.1%, or a record low 52.2% excluding merger-related and other charges

 

•Net charge-offs of $2.5 million, or 9 basis points as a percent of average loans, down 16 basis points from in the second quarter

 

•Nonperforming assets of 0.29% of total assets, which is down 3 basis points compared to June 30, 2020

 

•Total deferrals of $365 million or 3% of the total loan portfolio compared to $1.9 billion or 16% in the second quarter

 

•$500,000 of funding for the United Community Bank Foundation, adding to the initial $1 million contribution in the second quarter for charities and causes throughout the footprint

  

 

 

  

Conference Call

 

United will hold a conference call, Wednesday, October 21, 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 7466997. 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                                                       

 

   2020   2019       For the Nine Months Ended
September 30,		     
(in thousands, except per share data)  Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   Third
Quarter
2020 -
2019
Change		   2020   2019   YTD 2020
- 2019
Change		 
INCOME SUMMARY                                             
Interest revenue  $141,773   $123,605   $136,547   $136,419   $140,615        $401,925   $416,287      
Interest expense   13,319    14,301    17,941    19,781    21,277         45,561    63,531      
Net interest revenue   128,454    109,304    118,606    116,638    119,338    8%   356,364    352,756    1%
Provision for credit losses   21,793    33,543    22,191    3,500    3,100         77,527    9,650      
Noninterest income   48,682    40,238    25,814    30,183    29,031    68    114,734    74,530    54 
Total revenue   155,343    115,999    122,229    143,321    145,269    7    393,571    417,636    (6)
Expenses   95,981    83,980    81,538    81,424    82,924    16    261,499    240,821    9 
Income before income tax expense   59,362    32,019    40,691    61,897    62,345    (5)   132,072    176,815    (25)
Income tax expense   11,755    6,923    8,807    12,885    13,983    (16)   27,485    40,106    (31)
Net income   47,607    25,096    31,884    49,012    48,362    (2)   104,587    136,709    (23)
Merger-related and other charges   3,361    397    808    (74)   2,605         4,566    7,431      
Income tax benefit of merger-related and other charges   (519)   (87)   (182)   17    (600)        (788)   (1,712)     
Net income - operating (1)  $50,449   $25,406   $32,510   $48,955   $50,367    —   $108,365   $142,428    (24)
                                              
Pre-tax pre-provision income (5)  $81,155   $65,562   $62,882   $65,397   $65,445    24   $209,599   $186,465    12 
                                              
PERFORMANCE MEASURES                                             
Per common share:                                             
Diluted net income - GAAP  $0.52   $0.32   $0.40   $0.61   $0.60    (13)  $1.25   $1.70    (26)
Diluted net income - operating (1)   0.55    0.32    0.41    0.61    0.63    (13)   1.29    1.77    (27)
Cash dividends declared   0.18    0.18    0.18    0.18    0.17    6    0.54    0.50    8 
Book value   21.45    21.22    20.80    20.53    20.16    6    21.45    20.16    6 
Tangible book value (3)   17.09    16.95    16.52    16.28    15.90    7    17.09    15.90    7 
Key performance ratios:                                             
Return on common equity - GAAP (2)(4)   10.06%   6.17%   7.85%   12.07%   12.16%        8.11%   11.83%     
Return on common equity - operating (1)(2)(4)   10.69    6.25    8.01    12.06    12.67         8.40    12.32      
Return on tangible common equity - operating (1)(2)(3)(4)   13.52    8.09    10.57    15.49    16.38         10.76    15.92      
Return on assets - GAAP (4)   1.07    0.71    0.99    1.50    1.51         0.93    1.45      
Return on assets - operating (1)(4)   1.14    0.72    1.01    1.50    1.58         0.97    1.51      
Return on assets - pre-tax pre-provision (4)(5)   1.86    1.86    1.95    2.00    2.05         1.89    1.98      

Return on assets - pre-tax pre-provision, excluding merger-

related and other charges (1)(4)(5)

 

   1.93    1.87    1.98    2.00    2.13         1.93    2.06      
Net interest margin (fully taxable equivalent) (4)   3.27    3.42    4.07    3.93    4.12         3.55    4.11      
Efficiency ratio - GAAP   54.14    55.86    56.15    54.87    55.64         55.30    56.09      
Efficiency ratio - operating (1)   52.24    55.59    55.59    54.92    53.90         54.34    54.36      
Equity to total assets   11.47    11.81    12.54    12.66    12.53         11.47    12.53      
Tangible common equity to tangible assets (3)   8.89    9.12    10.22    10.32    10.16         8.89    10.16      
                                              
ASSET QUALITY                                             
Nonperforming loans  $49,084   $48,021   $36,208   $35,341   $30,832    59   $49,084   $30,832    59 
Foreclosed properties   953    477    475    476    102         953    102      
Total nonperforming assets ("NPAs")   50,037    48,498    36,683    35,817    30,934    62    50,037    30,934    62 
Allowance for credit losses - loans   134,256    103,669    81,905    62,089    62,514    115    134,256    62,514    115 
Net charge-offs   2,538    6,149    8,114    3,925    2,723    (7)   16,801    8,291    103 
Allowance for credit losses - loans to loans   1.14%   1.02%   0.92%   0.70%   0.70%        1.14%   0.70%     
Net charge-offs to average loans (4)   0.09    0.25    0.37    0.18    0.12         0.22    0.13      
NPAs to loans and foreclosed properties   0.42    0.48    0.41    0.41    0.35         0.42    0.35      
NPAs to total assets   0.29    0.32    0.28    0.28    0.24         0.29    0.24      
                                              
AVERAGE BALANCES ($ in millions)                                             
Loans  $11,644   $9,773   $8,829   $8,890   $8,836    32   $10,088   $8,647    17 
Investment securities   2,750    2,408    2,520    2,486    2,550    8    2,560    2,701    (5)
Earning assets   15,715    12,958    11,798    11,832    11,568    36    13,498    11,534    17 
Total assets   17,013    14,173    12,944    12,946    12,681    34    14,718    12,600    17 
Deposits   14,460    12,071    10,915    10,924    10,531    37    12,490    10,462    19 
Shareholders’ equity   1,948    1,686    1,653    1,623    1,588    23    1,763    1,533    15 
Common shares - basic (thousands)   87,129    78,920    79,340    79,659    79,663    9    81,815    79,714    3 
Common shares - diluted (thousands)   87,205    78,924    79,446    79,669    79,667    9    81,876    79,718    3 
                                              
AT PERIOD END ($ in millions)                                             
Loans  $11,799   $10,133   $8,935   $8,813   $8,903    33   $11,799   $8,903    33 
Investment securities   3,089    2,432    2,540    2,559    2,515    23    3,089    2,515    23 
Total assets   17,153    15,005    13,086    12,916    12,809    34    17,153    12,809    34 
Deposits   14,603    12,702    11,035    10,897    10,757    36    14,603    10,757    36 
Shareholders’ equity   1,967    1,772    1,641    1,636    1,605    23    1,967    1,605    23 
Common shares outstanding (thousands)   86,611    78,335    78,284    79,014    78,974    10    86,611    78,974    10 
(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.
(5)Excludes income tax expense and provision for credit losses.

 

 

 

 

UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation

Selected Financial Information                            

 

   2020   2019   For the Nine Months Ended
September 30,		 
(in thousands, except per share data)  Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   2020   2019 
Expense reconciliation                                   
Expenses (GAAP)  $95,981   $83,980   $81,538   $81,424   $82,924   $261,499   $240,821 
Merger-related and other charges   (3,361)   (397)   (808)   74    (2,605)   (4,566)   (7,431)
Expenses - operating  $92,620   $83,583   $80,730   $81,498   $80,319   $256,933   $233,390 
                                    
Net income to operating income reconciliation                                   
Net income (GAAP)  $47,607   $25,096   $31,884   $49,012   $48,362   $104,587   $136,709 
Merger-related and other charges   3,361    397    808    (74)   2,605    4,566    7,431 
Income tax benefit of merger-related and other charges   (519)   (87)   (182)   17    (600)   (788)   (1,712)
Net income - operating  $50,449   $25,406   $32,510   $48,955   $50,367   $108,365   $142,428 
                                    
Net income to pre-tax pre-provision income reconciliation                                   
Net income (GAAP)  $47,607   $25,096   $31,884   $49,012   $48,362   $104,587   $136,709 
Income tax expense   11,755    6,923    8,807    12,885    13,983    27,485    40,106 
Provision for credit losses   21,793    33,543    22,191    3,500    3,100    77,527    9,650 
Pre-tax pre-provision income  $81,155   $65,562   $62,882   $65,397   $65,445   $209,599   $186,465 
                                    
Diluted income per common share reconciliation                                   
Diluted income per common share (GAAP)  $0.52   $0.32   $0.40   $0.61   $0.60   $1.25   $1.70 
Merger-related and other charges, net of tax   0.03    —    0.01    —    0.03    0.04    0.07 
Diluted income per common share - operating  $0.55   $0.32   $0.41   $0.61   $0.63   $1.29   $1.77 
                                    
Book value per common share reconciliation                                   
Book value per common share (GAAP)  $21.45   $21.22   $20.80   $20.53   $20.16   $21.45   $20.16 
Effect of goodwill and other intangibles   (4.36)   (4.27)   (4.28)   (4.25)   (4.26)   (4.36)   (4.26)
Tangible book value per common share  $17.09   $16.95   $16.52   $16.28   $15.90   $17.09   $15.90 
                                    
Return on tangible common equity reconciliation                                   
Return on common equity (GAAP)   10.06%   6.17%   7.85%   12.07%   12.16%   8.11%   11.83%
Merger-related and other charges, net of tax   0.63    0.08    0.16    (0.01)   0.51    0.29    0.49 
Return on common equity - operating   10.69    6.25    8.01    12.06    12.67    8.40    12.32 
Effect of goodwill and other intangibles   2.83    1.84    2.56    3.43    3.71    2.36    3.60 
Return on tangible common equity - operating   13.52%   8.09%   10.57%   15.49%   16.38%   10.76%   15.92%
                                    
Return on assets reconciliation                                   
Return on assets (GAAP)   1.07%   0.71%   0.99%   1.50%   1.51%   0.93%   1.45%
Merger-related and other charges, net of tax   0.07    0.01    0.02    —    0.07    0.04    0.06 
Return on assets - operating   1.14%   0.72%   1.01%   1.50%   1.58%   0.97%   1.51%
                                    
Return on assets to return on assets- pre-tax pre-provision reconciliation                                   
Return on assets (GAAP)   1.07%   0.71%   0.99%   1.50%   1.51%   0.93%   1.45%
Income tax expense   0.28    0.20    0.27    0.39    0.44    0.26    0.43 
Provision for credit losses   0.51    0.95    0.69    0.11    0.10    0.70    0.10 
Return on assets - pre-tax, pre-provision   1.86    1.86    1.95    2.00    2.05    1.89    1.98 
Merger-related and other charges   0.07    0.01    0.03    —    0.08    0.04    0.08 
Return on assets - pre-tax pre-provision, excluding merger-related and other charges   1.93%   1.87%   1.98%   2.00%   2.13%   1.93%   2.06%
                                    
Efficiency ratio reconciliation                                   
Efficiency ratio (GAAP)   54.14%   55.86%   56.15%   54.87%   55.64%   55.30%   56.09%
Merger-related and other charges   (1.90)   (0.27)   (0.56)   0.05    (1.74)   (0.96)   (1.73)
Efficiency ratio - operating   52.24%   55.59%   55.59%   54.92%   53.90%   54.34%   54.36%
                                    
Tangible common equity to tangible assets reconciliation                                   
Equity to total assets (GAAP)   11.47%   11.81%   12.54%   12.66%   12.53%   11.47%   12.53%
Effect of goodwill and other intangibles   (2.02)   (2.05)   (2.32)   (2.34)   (2.37)   (2.02)   (2.37)
Effect of preferred equity   (0.56)   (0.64)   —    —    —    (0.56)   — 
Tangible common equity to tangible assets   8.89%   9.12%   10.22%   10.32%   10.16%   8.89%   10.16%

 

 

 

 

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End                            

 

   2020   2019   Linked    Year over 
(in millions)  Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   Quarter
Change		   Year
Change		 
LOANS BY CATEGORY                                   
Owner occupied commercial RE  $2,009   $1,759   $1,703   $1,720   $1,692   $250   $317 
Income producing commercial RE   2,493    2,178    2,065    2,008    1,934    315    559 
Commercial & industrial   1,788    1,219    1,310    1,221    1,271    569    517 
Paycheck protection program   1,317    1,095    —    —    —    222    1,317 
Commercial construction   987    946    959    976    1,001    41    (14)
Equipment financing   823    779    761    745    729    44    94 
Total commercial   9,417    7,976    6,798    6,670    6,627    1,441    2,790 
Residential mortgage   1,270    1,152    1,128    1,118    1,121    118    149 
Home equity lines of credit   707    654    668    661    669    53    38 
Residential construction   257    230    216    236    229    27    28 
Consumer   148    121    125    128    257    27    (109)
Total loans  $11,799   $10,133   $8,935   $8,813   $8,903   $1,666   $2,896 
                                    
                                    
LOANS BY MARKET                                   
North Georgia  $945   $951   $958   $967   $1,002   $(6)  $(57)
Atlanta   1,853    1,852    1,820    1,762    1,740    1    113 
North Carolina   1,246    1,171    1,124    1,156    1,117    75    129 
Coastal Georgia   614    618    604    631    611    (4)   3 
Gainesville   229    233    235    246    246    (4)   (17)
East Tennessee   420    433    425    421    435    (13)   (15)
South Carolina   1,870    1,778    1,774    1,708    1,705    92    165 
Florida   1,453    —    —    —    —    1,453    1,453 
Commercial Banking Solutions   3,169    3,097    1,995    1,922    1,916    72    1,253 
Indirect auto   —    —    —    —    131    —    (131)
Total loans  $11,799   $10,133   $8,935   $8,813   $8,903   $1,666   $2,896 

 

 

 

 

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality                        

 

   2020     
(in thousands)  Third
Quarter		   Second
Quarter		   First Quarter     
NONACCRUAL LOANS                              
Owner occupied RE  $11,075   $10,710   $10,405                
Income producing RE   12,230    11,274    2,235                
Commercial & industrial   3,534    3,432    3,169                
Commercial construction   1,863    2,290    1,724                
Equipment financing   3,137    3,119    2,439                
Total commercial   31,839    30,825    19,972                
Residential mortgage   13,864    13,185    12,458                
Home equity lines of credit   2,642    3,138    3,010                
Residential construction   479    500    540                
Consumer   260    373    228                
Total  $49,084   $48,021   $36,208                
                               
   2020 
   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  $(725)   (0.14)%  $(466)   (0.11)%  $(1,028)   (0.24)%
Income producing RE   1,785    0.29    4,548    0.86    270    0.05 
Commercial & industrial   (105)   (0.01)   (37)   (0.01)   7,185    2.30 
Commercial construction   (171)   (0.07)   122    0.05    (141)   (0.06)
Equipment financing   1,993    0.93    1,665    0.87    1,507    0.81 
Total commercial   2,777    0.12    5,832    0.31    7,793    0.47 
Residential mortgage   (35)   (0.01)   (6)   —    9    — 
Home equity lines of credit   (125)   (0.07)   (98)   (0.06)   (83)   (0.05)
Residential construction   —    —    (5)   (0.01)   (12)   (0.02)
Consumer   (79)   (0.22)   426    1.39    407    1.30 
Total  $2,538    0.09   $6,149    0.25   $8,114    0.37 

 

(1)Annualized.

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)  September 30,
2020		   December 31,
2019		 
ASSETS        
Cash and due from banks  $122,048   $125,844 
Interest-bearing deposits in banks   923,591    389,362 
Cash and cash equivalents   1,045,639    515,206 
Debt securities available-for-sale   2,690,448    2,274,581 
Debt securities held-to-maturity (fair value $413,820 and $287,904)   398,373    283,533 
Loans held for sale at fair value   128,587    58,484 
Loans and leases held for investment   11,798,910    8,812,553 
Less allowance for credit losses - loans and leases   (134,256)   (62,089)
Loans and leases, net   11,664,654    8,750,464 
Premises and equipment, net   211,885    215,976 
Bank owned life insurance   201,515    202,664 
Accrued interest receivable   48,091    32,660 
Net deferred tax asset   39,818    34,059 
Derivative financial instruments   103,388    35,007 
Goodwill and other intangible assets, net   384,074    342,247 
Other assets   236,405    171,135 
Total assets  $17,152,877   $12,916,016 
LIABILITIES AND SHAREHOLDERS' EQUITY          
Liabilities:          
Deposits:          
Noninterest-bearing demand  $5,227,170   $3,477,979 
NOW and interest-bearing demand   2,989,455    2,461,895 
Money market   3,399,793    2,230,628 
Savings   891,147    706,467 
Time   1,819,586    1,859,574 
Brokered   276,225    160,701 
Total deposits   14,603,376    10,897,244 
Long-term debt   326,703    212,664 
Derivative financial instruments   33,519    15,516 
Accrued expenses and other liabilities   222,024    154,900 
Total liabilities   15,185,622    11,280,324 
Shareholders' equity:          
Preferred stock; $1 par value; 10,000,000 shares authorized;
Series I, $25,000 per share liquidation preference; 4,000 shares issued and outstanding 		   96,422    — 
Common stock, $1 par value; 150,000,000 shares authorized;
86,611,114 and 79,013,729 shares issued and outstanding 		   86,611    79,014 
Common stock issuable; 590,521 and 664,640 shares   10,632    11,491 
Capital surplus   1,637,467    1,496,641 
Retained earnings   94,938    40,152 
Accumulated other comprehensive income   41,185    8,394 
Total shareholders' equity   1,967,255    1,635,692 
Total liabilities and shareholders' equity  $17,152,877   $12,916,016 

 

 

 

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)  2020   2019   2020   2019 
Interest revenue:                    
Loans, including fees  $126,936   $122,645   $352,861   $357,575 
Investment securities, including tax exempt of $1,895, $1,118, $4,988 and $3,409   14,558    17,744    47,567    57,638 
Deposits in banks and short-term investments   279    226    1,497    1,074 
Total interest revenue   141,773    140,615    401,925    416,287 
                     
Interest expense:                    
Deposits:                    
NOW and interest-bearing demand   1,634    3,214    6,240    10,283 
Money market   3,017    5,126    10,969    14,100 
Savings   47    41    121    115 
Time   4,300    8,732    18,014    25,687 
Deposits   8,998    17,113    35,344    50,185 
Short-term borrowings   2    429    3    838 
Federal Home Loan Bank advances   27    521    28    2,695 
Long-term debt   4,292    3,214    10,186    9,813 
Total interest expense   13,319    21,277    45,561    63,531 
Net interest revenue   128,454    119,338    356,364    352,756 
Provision for credit losses   21,793    3,100    77,527    9,650 
Net interest revenue after provision for credit losses   106,661    116,238    278,837    343,106 
                     
Noninterest income:                    
Service charges and fees   8,260    9,916    23,893    27,429 
Mortgage loan gains and other related fees   25,144    8,658    57,113    17,750 
Brokerage and wealth management fees   3,055    1,699    6,019    4,624 
Gains from sales of other loans, net   1,175    1,639    3,889    4,412 
Securities gains (losses), net   746    —    746    (118)
Other   10,302    7,119    23,074    20,433 
Total noninterest income   48,682    29,031    114,734    74,530 
Total revenue   155,343    145,269    393,571    417,636 
                     
Noninterest expenses:                    
Salaries and employee benefits   59,067    50,501    162,236    146,161 
Communications and equipment   6,960    6,223    19,462    18,233 
Occupancy   7,050    5,921    18,709    17,424 
Advertising and public relations   1,778    1,374    5,312    4,256 
Postage, printing and supplies   1,703    1,618    4,986    4,733 
Professional fees   5,083    4,715    14,003    11,930 
Lending and loan servicing expense   3,043    2,556    8,525    7,509 
Outside services - electronic banking   1,888    1,934    5,516    5,101 
FDIC assessments and other regulatory charges   1,346    314    4,388    3,571 
Amortization of intangibles   1,099    1,210    3,126    3,845 
Merger-related and other charges   3,361    2,541    4,566    6,981 
Other   3,603    4,017    10,670    11,077 
Total noninterest expenses   95,981    82,924    261,499    240,821 
Net income before income taxes   59,362    62,345    132,072    176,815 
Income tax expense   11,755    13,983    27,485    40,106 
Net income   47,607    48,362    104,587    136,709 
Preferred stock dividends   1,814    —    1,814    — 
Dividends and undistributed earnings allocated to unvested shares   356    351    779    982 
Net income available to common shareholders  $45,437   $48,011   $101,994   $135,727 
                     
Net income per common share:                    
Basic  $0.52   $0.60   $1.25   $1.70 
Diluted   0.52    0.60    1.25    1.70 
Weighted average common shares outstanding:                    
Basic   87,129    79,663    81,815    79,714 
Diluted   87,205    79,667    81,876    79,718 

 

 

 

 

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
   2020   2019 
(dollars in thousands, fully taxable equivalent (FTE))  Average
Balance		   Interest   Average
Rate		   Average
Balance		   Interest   Average
Rate		 
Assets:                        
Interest-earning assets:                              
Loans, net of unearned income (FTE) (1)(2)  $11,644,202   $126,342    4.32%  $8,835,585   $122,526    5.50%
Taxable securities (3)   2,499,649    12,663    2.03    2,379,927    16,626    2.79 
Tax-exempt securities (FTE) (1)(3)   249,959    2,544    4.07    170,027    1,502    3.53 
Federal funds sold and other interest-earning assets   1,321,445    1,132    0.34    182,935    616    1.35 
Total interest-earning assets (FTE)   15,715,255    142,681    3.61    11,568,474    141,270    4.85 
                               
Noninterest-earning assets:                              
Allowance for credit losses   (128,581)             (63,474)          
Cash and due from banks   135,949              116,922           
Premises and equipment   216,326              221,930           
Other assets (3)   1,074,529              836,951           
Total assets  $17,013,478             $12,680,803           
                               
Liabilities and Shareholders' Equity:                              
Interest-bearing liabilities:                              
Interest-bearing deposits:                              
NOW and interest-bearing demand  $2,890,735    1,634    0.22   $2,123,910    3,214    0.60 
Money market   3,501,781    3,017    0.34    2,277,162    5,126    0.89 
Savings   864,849    47    0.02    695,297    41    0.02 
Time   1,933,764    4,127    0.85    1,879,801    8,053    1.70 
Brokered time deposits   96,198    173    0.72    102,078    679    2.64 
Total interest-bearing deposits   9,287,327    8,998    0.39    7,078,248    17,113    0.96 
Federal funds purchased and other borrowings   4,405    2    0.18    73,733    429    2.31 
Federal Home Loan Bank advances   2,818    27    3.81    88,261    521    2.34 
Long-term debt   327,017    4,292    5.22    243,935    3,214    5.23 
Total borrowed funds   334,240    4,321    5.14    405,929    4,164    4.07 
Total interest-bearing liabilities   9,621,567    13,319    0.55    7,484,177    21,277    1.13 
                               
Noninterest-bearing liabilities:                              
Noninterest-bearing deposits   5,172,999              3,453,174           
Other liabilities   270,451              155,107           
Total liabilities   15,065,017              11,092,458           
Shareholders' equity   1,948,461              1,588,345           
Total liabilities and shareholders' equity  $17,013,478             $12,680,803           
                               
Net interest revenue (FTE)       $129,362             $119,993      
Net interest-rate spread (FTE)             3.06%             3.72%
Net interest margin (FTE) (4)             3.27%             4.12%

 

(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 $77.0 million in 2020 and unrealized gains of $35.1 million in 2019 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,
   2020   2019 
(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)  $10,087,630   $351,536    4.65%  $8,646,622   $357,541    5.53%
Taxable securities (3)   2,362,674    42,579    2.40    2,532,070    54,229    2.86 
Tax-exempt securities (FTE) (1)(3)   197,231    6,699    4.53    168,787    4,579    3.62 
Federal funds sold and other interest-earning assets   850,722    3,621    0.57    186,402    1,913    1.37 
Total interest-earning assets (FTE)   13,498,257    404,435    4.00    11,533,881    418,262    4.85 
                               
Non-interest-earning assets:                              
Allowance for loan losses   (96,235)             (62,664)          
Cash and due from banks   134,354              121,889           
Premises and equipment   217,551              220,872           
Other assets (3)   964,511              785,862           
Total assets  $14,718,438             $12,599,840           
                               
Liabilities and Shareholders' Equity:                              
Interest-bearing liabilities:                              
Interest-bearing deposits:                              
NOW and interest-bearing demand  $2,583,911    6,240    0.32   $2,199,607    10,283    0.63 
Money market   2,797,350    10,969    0.52    2,187,822    14,100    0.86 
Savings   788,681    121    0.02    685,167    115    0.02 
Time   1,860,597    17,435    1.25    1,761,374    20,338    1.54 
Brokered time deposits   102,502    579    0.75    292,835    5,349    2.44 
Total interest-bearing deposits   8,133,041    35,344    0.58    7,126,805    50,185    0.94 
Federal funds purchased and other borrowings   1,611    3    0.25    44,898    838    2.50 
Federal Home Loan Bank advances   1,001    28    3.74    142,876    2,695    2.52 
Long-term debt   256,218    10,186    5.31    252,686    9,813    5.19 
Total borrowed funds   258,830    10,217    5.27    440,460    13,346    4.05 
Total interest-bearing liabilities   8,391,871    45,561    0.73    7,567,265    63,531    1.12 
                               
Noninterest-bearing liabilities:                              
Noninterest-bearing deposits   4,356,484              3,335,450           
Other liabilities   206,904              164,350           
Total liabilities   12,955,259              11,067,065           
Shareholders' equity   1,763,179              1,532,775           
Total liabilities and shareholders' equity  $14,718,438             $12,599,840           
                               
Net interest revenue (FTE)       $358,874             $354,731      
Net interest-rate spread (FTE)             3.27%             3.73%
Net interest margin (FTE) (4)             3.55%             4.11%

 

(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 $65.5 million in 2020 and unrealized gains of $4.94 million in 2019 are included in other assets for purposes of this presentation.
(4)Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

  

 

 

 

About United Community Banks, Inc.

 

United Community Banks, Inc. (NASDAQ: UCBI) (United) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $17.2 billion in assets, and 163 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee. United Community Bank, United’s wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, including Florida under the brand Seaside Bank and Trust. Services include a full range of consumer and commercial banking products, including mortgage, advisory, treasury management, and wealth management. Respected national research firms consistently recognize United for outstanding customer service. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2020 list of the 100 Best Banks in America for the seventh consecutive year. United also received five Greenwich Excellence Awards in 2019 for excellence in Small Business Banking and Middle Market Banking, including a national award for Overall Satisfaction in Small Business Banking. Additional information about United can be found at www.ucbi.com. 

 

 

Non-GAAP Financial Measures

 

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “pre-tax pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax pre-provision, excluding merger-related and other charges,” “return on assets – pre-tax pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

 

# # #

 

 

 

 

Exhibit 99.2

 

3 Q Investor Presentation October 20, 2020

 
 

Disclosures CAUTIONARY STATEMENT This Investor Presentation contains forward - looking statements about United Community Banks, Inc . (“United”), as defined in federal securities laws . Statements that are not historical or current facts, including statements about beliefs and expectations, are forward - looking statements and are based on information available to, and assumptions and estimates made by, management as of the date hereof . Because forward - looking statements involve inherent risks and uncertainties, our actual results may differ materially from those expressed or implied in any such statements . The COVID - 19 pandemic is adversely impacting United, its employees, customers , vendors, counterparties, and the communities that it serves . The ultimate extent of the impact of COVID — 19 on United’s financial position, results of operations, liquidity, and prospects is highly uncertain . United’s results could be adversely affected by, among other things, volatility in financial markets, continued deterioration of economic and business conditions, further increases in unemployment rates, deterioration in the credit quality of United’s loan portfolio, deterioration in the value of United’s investment securities, and changes in statutes, regulations, and regulatory policies or practices . For a discussion of these and other risks 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 2019 Annual Report on Form 10 - K and Form 10 - Q for the quarters ended March 31 , 2020 and June 30 , 2020 under the sections entitled “Cautionary Note Regarding Forward - Looking Statements” and “Risk Factors . ” 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 ,” “Return on assets – pre - tax pre - provision, excluding merger - related and other charges,” “ 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

 
 

163 BANKING OFFICES ACROSS THE SOUTHEAST #1 IN CUSTOMER SATISFACTION with Retail Banking in the Southeast – J.D. Power United Community Banks, Inc. $ 17.2 BILLION IN ASSETS $2.4 BILLION IN AUA (1) $ 14.6 BILLION IN TOTAL DEPOSITS WORLD’S BEST BANKS in 2019 & 2020 - Forbes 2020 TOP WORKPLACES In S.C. & Atlanta – Greenville Business Magazine & Atlanta Journal Constitution BEST IN CLASS CUSTOMER SATISFACTION - Customer Service Profiles $0.18 QUARTERLY DIVIDEND UP 6% YOY 3 Regional Full Service Branch Network National Navitas and SBA Markets Premier Southeast Regional Bank x Metro - focused branch network with locations in the fastest growing MSAs in the Southeast x 156 branches, 7 loan production sites, and 4 mortgage loan offices across five SE states x Recent expansion into key Florida markets with Seaside acquisition x Top 10 market share in GA and SC x Proven ability to integrate bank transactions – 8 transactions over the past 10 years Committed to Service Since 1950 Extended Navitas and SBA Markets $11.8 BILLION IN TOTAL LOANS Company Overview 13.1% TIER 1 RBC 100 BEST BANKS IN AMERICA f or the seventh consecutive year - Forbes x Offered in 48 states across the continental U.S. x SBA business has both in - footprint and national business (4 specific verticals) x Navitas subsidiary is a small ticket essential use commercial equipment finance provider (1) Assets Under Administration Branches United Community Seaside Bank and Trust

 
 

$20.16 $21.22 $21.45 $15.90 $16.95 $17.09 3Q19 2Q20 3Q20 Book Value Per Share GAAP Tangible $0.52 Diluted earnings per share – GAAP $0.55 Diluted earnings per share – operating 1.07% Return on average assets - GAAP 1.14% Return on average assets - operating 1.93% PTPP ROA - operating 0.25% Cost of Deposits 10.1% Return on common equity - GAAP 13.5% Return on tangible common equity - operating 6% YOY growth in b ook value per share 7% YOY growth in tangible book value per share Annualized 3 Q EOP c ore loan growth of 8 % or $227 mm 36% DDA / Total Deposits 3 Q20 Highlights (1) See non - GAAP reconciliation table slides in the Appendix for a reconciliation of operating performance measures to GAAP performance $0.60 $0.32 $0.52 $0.63 $0.32 $0.55 3Q19 2Q20 3Q20 Diluted Earnings Per Share GAAP Operating (1) 1.51% 0.71% 1.07% 1.58% 0.72% 1.14% 3Q19 2Q20 3Q20 Return on Assets GAAP Operating $0.17 $0.18 $0.18 3Q19 2Q20 3Q20 Dividends Per Share Dividends per share (1) (1) (1) 4 (1) (1) (1)

 
 

High Quality Balance Sheet / Earnings Strength 5 Capital x 2 Q20 TCE + reserves is substantially higher compared to peers; providing greater stability and protection against losses x UCBI ranks 15 th highest among the 50 KRX peers (1) Pre - tax pre - provision - operating ROA calculated as ROA minus the effect of income tax expense, provision expense and merger - related and other charges Source: S&P Global Markets Profitability x 2 Q20 PTPP ROA - operating is 19% higher compared to peers x UCBI ranks 12 th highest PTPP ROA among the 50 KRX peers Liquidity x Significantly lower 2Q20 loan to deposit ratio compared to peers x UCBI has the 12 th lowest loan to deposit ratio among the 50 KRX peers Funding x Funding base comprised mostly of core deposits; 2Q20 funding costs remain below the peer median x UCBI ranks 23 rd lowest among the 50 KRX peers 1.87% 1.58% UCBI KRX Median PTPP ROA - operating (1) 0.38% 0.40% UCBI KRX Median Cost of Deposits 81% 90% UCBI KRX Median Average Loans / Deposits % 14.00% 13.07% UCBI KRX Median TCE + ALLL / Total Loans

 
 

$62.1 $67.8 11.4% 9.0% 5.7% 2.9% (1) Includes MSAs with a population of greater than 300,000 (2) Data by MSA shown on a weighted average basis by deposits Located in Most of the Top 20 Markets in the Region United / Seaside MSA Presence (Branch and or LPO) Projected Population Growth (2 ) 2021 – 2026 (%) Projected Household Income Growth (2) 2021 – 2026 (%) Median Household Income (2) ($ in thousands) High - Growth MSAs in the Southeast UCBI Focused on High - Growth MSAs in Southeast National Avg. National Avg. National Avg. 6 Fastest Growing ‘21 – ’26 Proj. ’21 ‘26 Proj. Median Southeast MSAs (1) Pop. Growth % Population Household Income 1.Myrtle Beach, SC 8.49 518,050 $62,042 2.Cape Coral, FL 7.42 785,277 $68,827 3.Raleigh, NC 7.30 1,420,576 $91,380 4.Charleston, SC 7.30 823,428 $78,951 5.Orlando, FL 7.09 2,685,903 $72,412 6.Lakeland, FL 6.98 738,482 $62,730 7.Naples, FL 6.96 393,750 $84,332 8.Spartanburg, SC 6.81 327,475 $66,443 9.Sarasota, FL 6.79 855,242 $73,471 10.Charlotte, NC 6.61 2,696,789 $77,692 11.Wilmington, NC 6.57 304,661 $60,070 12.Jacksonville, FL 6.17 1,602,120 $73,563 13.Port St. Lucie, FL 6.10 495,076 $68,635 14.Greenville, SC 6.08 937,813 $68,413 15.Tampa, FL 6.06 3,257,479 $67,300 16.Durham-Chapel Hill, NC 5.93 655,218 $74,713 17.Nashville, TN 5.91 1,980,990 $80,404 18.Fayetteville, AR 5.88 550,113 $71,570 19.Daytona Beach, FL 5.81 678,826 $65,579 20.Atlanta, GA 5.73 6,137,994 $85,730

 
 

39% 9% 21% 1% 11% 6% 2% 11% Residential Mortgage Diversified Loan Portfolio Reduces Risk 3Q20 Total Loans $11.8 billion (1) C&I includes commercial and industrial loans, owner - occupied CRE loans and Navitas (equipment finance) loans x Loans increased $1.67 billion in 3Q20, with $1.44 billion coming from Seaside x 3Q20 core loan growth of $227 million, or 8% annualized x 3Q20 Seaside loan growth of $11.8 million 7 C&I Commercial Construction CRE Other Consumer PPP Home Equity Residential Construction (1)

 
 

8 x The allowance for credit losses increased $30 million in 3Q20 and $81 million from year - end x We reviewed multiple scenarios and examined and stressed our inputs x The current environment is inherently unpredictable due to the impact of COVID - 19; w e continuously review multiple economic scenarios and the potential mitigants of government action Allowance for Credit Losses (ACL) $ in millions x Day 2 provision for Non - PCD acquired loans was $9.8 million plus $0.9 million for unfunded commitments for a total of $10.7 million Note: Includes PPP loans, which have an interest mark of approximately $2.6 million Seaside Purchase Accounting Marks % of Total Credit Mark Interest Mark Total Mark PCD Loans 19% $11.1 $8.8 $19.9 Non-PCD Loans 81% $8.0 $18.3 $26.3 ACL - Loans 62,089$ 68,969$ 81,905$ 103,669$ 134,256$ ACL - Unfunded Commitments 3,458$ 5,329$ 6,470$ 12,100$ 11,920$ ACL - Allowance for Credit Losses* 65,547$ 0.74% 74,298$ 88,375$ 0.99% 115,769$ 1.28% 146,176$ 1.39% 4Q19 Day 1 CECL 1/1/2020 1Q20 2Q20 3Q20 * Excluding PPP loans

 
 

Strong Credit Quality in 3Q 9 x 3 Q20 NCOs of $2.5 million, or 0.09% annualized • The quarter b enefited from $4.2 million of recoveries x The provision for credit losses was $21.8 million, including $10.7 million Day 2 CECL provision for Seaside x NPAs relatively flat compared to last quarter and last year 0.12% 0.25% 0.09% 3Q19 2Q20 3Q20 $3.1 $33.5 $21.8 3Q19 2Q20 3Q20 0.24% 0.32% 0.29% 3Q19 2Q20 3Q20 Net Charge - Offs as % of Average Loans Provision for Credit Losses $ in millions Non - Performing Assets as % of Total Assets

 
 

Loan Deferrals Improved Significantly in 3Q 10 x Loan payment deferrals have continued to improve from a peak of $1.9 billion, or 15.9% of the total loan portfolio as of June 30 th to $365 million, or 3.1% of the total loan portfolio as September 30 th (1) June 30, 2020 loan deferrals include Seaside’s results, although the acquisition closed on July 1, 2020. Payment Deferrals by Loan Type $ in thousands $ Deferred % of Total Loan Portfolio % of Category Total $ Deferred % of Total Loan Portfolio % of Category Total Hotels 219,169 1.88% 70.8% 122,601 1.04% 37.9% Restaurants 128,570 0.93% 39.5% 118,800 1.01% 35.2% Senior Care 107,880 1.10% 20.9% 44,384 0.38% 8.5% Equipment Finance 181,914 8.97% 23.4% 19,773 0.17% 2.4% All Other Commercial 1,044,297 1.56% 14.2% 45,030 0.38% 0.6% One-to-Four Family 160,893 1.38% 7.4% 13,972 0.12% 0.6% Other Consumer 6,857 0.06% 3.3% 466 0.00% 0.2% Total 1,849,580$ 15.89% 365,026$ 3.08% June 30, 2020 September 30, 2020

 
 

Capital Ratios Remain Strong x Capital ratios significantly above “well capitalized ” x Closed the Seaside acquisition on 7/1/2020, which reduced our capital ratios as expected x Quarterly dividend of $0.18 per share 3 Q20 Highlights CET1 Ratio (%) Tier 1 Ratio (%) Total Capital Ratio (%) Holding Company 3Q19 1Q20 2 Q20 3Q20 * Common Equity Tier 1 Capital 12.4 % 12.9 % 12.9 % 12.3 % Tier 1 Risk - Based Capital 12.7 13.1 14.0 13.1 Total Risk - Based Capital 14.5 14.9 16.1 15.2 Leverage 10.2 10.4 10.3 9.4 Tangible Common Equity to Tangible Assets 10.2 10.2 9.1 8.9 12.0% 12.2% 13.0% 12.9% 12.9% 12.3% 4Q17 4Q18 4Q19 1Q20 2Q20 3Q20* 12.2% 12.4% 13.2% 13.1% 14.0% 13.1% 4Q17 4Q18 4Q19 1Q20 2Q20 3Q20* 13.1% 14.3% 15.0% 14.9% 16.1% 15.2% 4Q17 4Q18 4Q19 1Q20 2Q20 3Q20* *3Q20 regulatory capital ratios are preliminary 11

 
 

$119.3 $109.3 $128.5 3Q19 2Q20 3Q20 Net Interest Revenue / Margin (1) $ in millions x Net interest margin decreased by 15 bps from 2Q20, resulting from 23 bps of core margin pressure offset by a 8 bps increase in purchased loan accretion x Of the core margin pressure,10 bps resulted from the full impact of excess liquidity from 2Q’s liquidity and PPP increases 4.12% 3.42% 3.27% Net Interest Revenue Net Interest Margin (1) Net interest margin is calculated on a fully - taxable equivalent basis (1) 12 3 Q20 NIM Compression 3.42% 3.27% - 0.10% - 0.13% 0.08% 2Q NIM Excess Liquidity / PPP Low Interest Rates / Seaside Purchased Loan Accretion 3Q NIM (%)

 
 

36% 21% 24% 6% 13% DDA MMDA Savings Time NOW x Total deposits up $ 1.9 billion from 2Q20 • Seaside contributed $1.8 billion to total deposits in 3Q20 x Core transaction deposits excluding Seaside were up $0.4 billion, or 15 % annualized from 2Q20 and up $2.3 billion, or 32% YOY • Seaside added $1.2 billion of core transaction deposits in 3Q20 x Cost of deposits down 13 bps to 0.25% in 3Q20, driven by continued noninterest bearing deposit growth and rate cuts Valuable Deposit Mix 3 Q20 Total Deposits $ 14.6 billion 3 Q20 Highlights Strong Core Deposit Growth Over Time 13 4Q18 4Q19 1Q20 2Q20 3Q20 Total Deposits Trend $ in billions DDA NOW MMDA Savings Time $10.5 $10.9 $11.0 $12.7 $14.6 (1) Transaction accounts include demand deposits, interest - bearing demand, money market and savings accounts, excluding public funds deposits

 
 

Noninterest Income $ in millions $9.9 $7.0 $8.3 $7.1 $7.2 $11.0 $1.7 $1.3 $3.1 $8.7 $23.7 $25.1 $1.6 $1.0 $1.2 3Q19 2Q20 3Q20 Service Charges Other Brokerage / Wealth Mgmt Mortgage Loan sale gains $ 29.0 $40.2 $48.7 Linked Quarter x Fees up $8.5 million • Service charges up $1.3 million due to increased debit card and NSF activity as more businesses continued to reopen; Seaside added approximately $180k of the $1.3 million total • Mortgage fees up $ 1.5 million from previous record level 2Q20 • Rate locks and production volume were at record levels – with $910 million in 3Q20 rate locks versus $802 million in 2Q20 • 3Q20 mortgage production purchase/refi mix was 45%/55% • 3 Q20 mortgage results included a $1.2 million MSR write - down vs a $1.8 million write - down in 2Q20 • Gain on sale of SBA loans was $1.2 million on $13.5 million of SBA loan sales • 3Q20 included a positive $1.0 million MTM change on the SBA servicing asset compared to a negative mark in 2Q20 Year - over - Year x Fees up $19.7 million • Mortgage rate locks up 79% compared to last year ($910 million in 3 Q20 vs. $508 million in 3Q19) 14

 
 

15 x UCBI funded 10,994 PPP loans totaling $1.1 billion with an average loan size of $106 thousand x Seaside funded 789 PPP loans totaling $220 million with an average loan size of $278 thousand x 56% of our PPP customers, representing $719 million in loans, have input completed forgiveness materials into our portal x The SBA has put forth a streamlined forgiveness process for loans $50,000 and below; UCBI has 6,508 of such loans totaling $124 million. The 6,508 individual loans represents 60% of our total n umber of loans PPP Update $0.2 $1.1 $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 PPP Totals $ billions

 
 

$82.9 $84.0 $96.0 $80.3 $83.6 $92.6 3Q19 2Q20 3Q20 55.6% 55.9% 54.1% 53.9% 55.6% 52.2% GAAP Operating (1) Efficiency Ratio Expenses Disciplined Expense Management $ in millions Linked Quarter x GAAP and operating expenses increased 14% and 11%, respectively • 3Q20 included nominal Seaside cost savings and we are confident in achieving our stated cost savings target • Mortgage commissions up $0.5 million primarily due to the increase in mortgage production volume • $0.5 million expense from contribution to the United Community Bank Foundation; following $1.0 million contribution in 2Q20 Year - over - Year x GAAP and operating expenses increased 16% and 15%, respectively Operating (1) GAAP (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures to GAAP p erformance measures 16

 
 

Digital Adoption Increasing 17 x Website: x 19.5% increase in ucbi.com users YOY x Since March, 65,000 users have at least started an online application to open a loan/deposit account or enroll in online banking x Digital Banking: x YTD, 15% of all new consumer deposit accounts were opened online x 135% increase YoY in online account opening x Active online/mobile banking users up 9% YTD x Social Media: x Social media followers up 22% YTD x 24% YOY growth in traffic from social media channels to ucbi.com

 
 

Member FDIC. © 2020 United Community Bank 3 Q INVESTOR PRESENTATION Exhibits

 
 

x Continuous review and enhancements to credit policy x Quarterly reviews of portfolio limits and concentrations x Centralized underwriting and approval process for consumer credit x Distributed Regional Credit Officers (reporting to Credit) for commercial x Dedicated Special Assets team x Eight of the top twelve credit leaders recruited post - crisis Strong Credit Culture & Disciplined Credit Processes x In 2014, centralized and streamlined consumer underwriting and related functions x Significantly strengthened commercial process for approvals and monitoring x CEO with deep knowledge and experience in credit x 2015 Rob Edwards brought in to lead team (BB&T, TD Bank) x Senior credit risk team includes seasoned banking veterans with significant large bank credit risk experience, through multiple cycles x Granular portfolio, with concentration limits set for all segments of the portfolio x Five state franchise with mix of metro and rural markets x Recent expansion into Florida market with Three Shores acquisition x Diversification with national Navitas and SBA businesses x Construction & CRE ratio as a percentage of Total RBC = 69 %/197% x C&D > 30% in cycle, now 10.5% x Land within C&D is only 19% of total C&D x Navitas 7.0% of loans x Granular product concentration limits Process Change Add Significant Talent Concentration Management: Size Concentration Management: Product Concentration Management: Geography 1 2 3 4 5 Structure Policy Exposure & Industry Limits $ in millions House Lending Limit Relationship Limit Legal Lending Limit Top 25 Relationships (6% total loans) $ 42 3 20 35 706 SNC’s outstanding 292 SNC’s committed 434 x Weekly Senior Credit Committee; approval required for all relationship exposure > $12.5 million x Continuous external loan review x Monthly commercial asset quality review x Monthly retail asset quality review meetings Process BUILT TO OUTPERFORM IN THE NEXT CYCLE 19

 
 

Retail CRE 20 x Top 50 Retail CRE loans totaled $322 million outstanding, 3% of total loans as of 3Q20 x Average loan size of approximately $4.8 million x Seaside has $44 million of retail CRE as of 3Q20 28% 12% 23% 27% 10% Top 50 UCBI Retail CRE - Property Type Grocery Anchored Single Tenant Anchored Unanchored Mixed Use

 
 

Selected Segments – Restaurants & Hotels 21 x Restaurant loans outstanding totaled $337.1 million as of 3Q20, or 3% of total loans x As of 3Q20, $119 million of UCBI restaurant loans were deferred, which equated to approximately 35% of the total restaurant portfolio commitments x Hotel loans outstanding totaled $329.6 million as of 3Q20, or 3% of total loans x Loan to value low at 53% on average for UCBI portfolio x Top Tier UCBI brands represent approximately 56% of total outstanding exposure x Over 50% of hotel loan exposures are located within Atlanta, Columbia, Myrtle Beach, Greenville, Savannah and Florence x As of 3Q20, $122 million of UCBI hotel loans were deferred, which equated to approximately 37% of the total hotel portfolio outstanding (1) Excluding PPP loans 78% 12% 2% 2% 6% Hotels by Product CRE Construction SBA Seaside (1) Navitas 33% 5% 16% 14% 29% 3% Restaurants by Product (1) Owner Occupied RE Construction C&I SBA Navitas Seaside

 
 

x Navitas 3 Q20 NCOs = 0.93% x Navitas had a >4% 3 Q20 pretax ROA and could withstand ~ 4.9% in annualized credit losses before reporting a net loss x Navitas ’ cumulative net loss rates have approximated 2 % for the last 10 years x Navitas ACL - Loans equated to 1.87% as of 3Q20 x Rating agencies have historically assigned Navitas originations with expected through - the - cycle loss rates of 3.1% to 3.8 % Credit Quality — Navitas 22 0.67% 0.87% 0.93% 3Q19 2Q20 3Q20 Net Charge - Offs as % of Average Loans x Total Navitas deferrals are only 2% of the total Navitas loan portfolio at 3Q20, improved 90% from 2Q20 x Of Navitas’ top 5 loan categories by industry type, 10% of Navitas’ fitness facility loans are deferred, making up 32% of total Navitas deferrals 1.27% 0.37% 10.24% 3.96% 0.54% Eating Places Physician Offices Fitness Facilities Salons Local Trucking Deferral % by Category for Top 5 Categories 3Q20

 
 

Expanding Mortgage Throughout the Footprint x We have been consistently investing in our mortgage business x The total number originators were relatively flat in 2019 and 2020, however we have been continually upgrading talent over the past few quarters, including the lift out of a 15 person team in Raleigh in 3Q19 x Mortgage production per originator, per quarter increased to $6.9 million in 3Q20, or 75% above 3Q19 x Purchase / Refi mix has shifted from 70% / 30% in 3Q19 to 55% / 45% in 3Q20 x Technology investments have also paid off as we have been able to market to our existing customers and also have enabled us to cut processing costs and process times x We continue to hire mortgage originators and are optimistic about the opportunity to overlay the business on the Seaside franchise 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Loans Sold ($ millions) $132 $111 $153 $220 $226 $259 $397 $402 Gain on Sale % 2.6% 2.7% 3.7% 3.4% 3.7% 2.9% 4.5% 5.4% 23 251 312 390 508 411 801 802 910 10 9 13 15 15 17 25 25 5 10 15 20 25 30 100 300 500 700 900 1,100 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Funded Locks / MLO Mortgage Locks ($) Mortgage Locks Mortgage Locks ($ millions) Funded Locks / MLO

 
 

Non - GAAP Reconciliation Tables $ in thousands, except per share data 24 ( 1) Merger - related and other charges for 3Q19 include $ 64 thousand of intangible amortization resulting from payments made to executives under their change of control agreements. The resulting intangible assets were being amortized over 12 to 24 months. 3Q19 4Q19 1Q20 2Q20 3Q20 (1) Expenses Expenses - GAAP 82,924$ 81,424$ 81,538$ 83,980$ 95,981$ Merger-related and other charges (2,605) 74 (808) (397) (3,361) Expenses - Operating 80,319$ 81,498$ 80,730$ 83,583$ 92,620$ Diluted Earnings per share Diluted earnings per share - GAAP 0.60$ 0.61$ 0.40$ 0.32$ 0.52$ Merger-related and other charges 0.03 - 0.01 - 0.03 Diluted earnings per share - Operating 0.63 0.61 0.41 0.32 0.55 Book Value per share Book Value per share - GAAP 20.16$ 20.53$ 20.80$ 21.22$ 21.45$ Effect of goodwill and other intangibles (4.26) (4.25) (4.28) (4.27) (4.36) Tangible book value per share 15.90$ 16.28$ 16.52$ 16.95$ 17.09$ Return on Tangible Common Equity Return on common equity - GAAP 12.16 % 12.07 % 7.85 % 6.17 % 10.06 % Effect of merger-related and other charges 0.51 (0.01) 0.16 0.08 0.63 Return on common equity - Operating 12.67 12.06 8.01 6.25 10.69 Effect of goodwill and intangibles 3.71 3.43 2.56 1.84 2.83 Return on tangible common equity - Operating 16.38 % 15.49 % 10.57 % 8.09 % 13.52 %

 
 

Non - GAAP Reconciliation Tables $ in thousands, except per share data (1) Merger - related and other charges for 3Q19 include $ 64 thousand of intangible amortization resulting from payments made to executives under their change of control agreements. The resulting intangible assets were being amortized over 12 to 24 months. 25 3Q19 4Q19 1Q20 2Q20 3Q20 (1) Return on Assets Return on assets - GAAP 1.51 % 1.50 % 0.99 % 0.71 % 1.07 % Merger-related and other charges 0.07 - 0.02 0.01 0.07 Return on assets - Operating 1.58 % 1.50 % 1.01 % 0.72 % 1.14 % Return on Assets to return on assets- pre-tax pre-provision Return on assets - GAAP 1.51 % 1.50 % 0.99 % 0.71 % 1.07 % Income tax expense 0.44 0.39 0.27 0.20 0.28 Provision for credit losses 0.10 0.11 0.69 0.95 0.51 Return on assets - pre-tax, pre-provision 2.05 2.00 1.95 1.86 1.86 Merger-related and other charges 0.08 - 0.03 0.01 0.07 Return on assets - pre-tax, pre-provision, excluding merger-related and other charges 2.13 % 2.00 % 1.98 % 1.87 % 1.93 % Efficiency Ratio Efficiency Ratio - GAAP 55.64 % 54.87 % 56.15 % 55.86 % 54.14 % Merger-related and other charges (1.74) 0.05 (0.56) (0.27) (1.90) Efficiency Ratio - Operating 53.90 % 54.92 % 55.59 % 55.59 % 52.24 % Tangible common equity to tangible assets Equity to assets ratio - GAAP 12.53 % 12.66 % 12.54 % 11.81 % 11.47 % Effect of goodwill and other intangibles (2.37) (2.34) (2.32) (2.05) (2.01) Effect of preferred equity - - - (0.64) (0.57) Tangible common equity to tangible assets ratio 10.16 % 10.32 % 10.22 % 9.12 % 8.89 %

 
 

Glossary 26 ACL – Allowance for Credit Losses MSA – Metropolitan Statistical Area ALLL – Allowance for Loan Losses MSR – Mortgage Servicing Rights Asset AUA – Assets Under Administration NCO – Net Charge-Offs BPS – Basis Points NIM – Net Interest Margin C&I – Commercial and Industrial NPA – Non-Performing Asset C&D – Commercial and Development NSF – Non-sufficient Funds CECL – Current Expected Credit Losses OO RE – Owner Occupied Commercial Real Estate CET1 – Common Equity Tier 1 Capital PCD – Loans Purchased with Credit Deterioration CRE – Commercial Real Estate PPP – Paycheck Protection Program CSP – Customer Service Profiles PTPP – Pre-Tax, Pre-Provision Earnings DDA – Demand Deposit Account RBC – Risk Based Capital EOP – End of Period ROA – Return on Assets GAAP – Accounting Principles Generally Accepted in the United States of America SBA – United States Small Business Administration KRX – KBW Nasdaq Regional Banking Index TCE – Tangible Common Equity LPO – Loan Production Office USDA – United States Department of Agriculture MLO – Mortgage Loan Officer YOY – Year over Year MTM – Marked-to-market