View:
Download DOC
Download PDF
Download XLS
Download XBRL
0000857855 false 0000857855 2021-04-20 2021-04-20 0000857855 us-gaap:CommonStockMember 2021-04-20 2021-04-20 0000857855 ucbi:DepositarySharesMember 2021-04-20 2021-04-20 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): April 20, 2021

 

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 April 20, 2021, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the first quarter of 2021. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
   
Item 7.01 Regulation FD Disclosure.
   
  On April 21, 2021, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the first quarter of 2021. 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 April 20, 2021.
   
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: April 20, 2021  

 

 

 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 First Quarter Results

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

 

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

 

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

 

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

 

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

 

 1 
 

 

First Quarter 2021 Financial Highlights:

 

•Net income of $73.7 million and pre-tax, pre-provision income of $81.6 million

 

•EPS increased by 105% compared to last year on a GAAP basis and 102% on an operating basis; compared to fourth quarter 2020, EPS increased by 24% on a GAAP basis and 22% on an operating basis

 

•Return on assets of 1.62%, or 1.65% on an operating basis

 

•Pre-tax, pre-provision return on assets of 1.80%, or 1.83% on an operating basis

 

•Return on common equity of 15.4%

 

•Return on tangible common equity of 19.7% on an operating basis

 

•A release of provision for credit losses of $12.3 million, which reduced the allowance for loan losses to 1.09% (1.18%, excluding PPP loans) from 1.20% in the fourth quarter

 

•Loan production of $1.5 billion, resulting in core loan growth of 3%, annualized for the quarter, excluding the impact of $518 million in new PPP loans and $311 million in PPP loans being forgiven

 

•Core transaction deposits were up $948 million, which represents a 33% annualized growth rate for the quarter

 

•Net interest margin of 3.22% was down 33 basis points from the fourth quarter, mainly due to the impact of accelerated PPP fees during the fourth quarter

 

•Record mortgage closings of $666 million and mortgage rate locks of $993 million, compared to $388 million and $801 million, respectively, a year ago

 

•Noninterest income was up $3.3 million on a linked quarter basis, primarily driven by higher mortgage loan gains and related fees

 

•Noninterest expenses decreased by $11.3 million compared to the fourth quarter mostly due to funding for the United Community Bank Foundation of $8.5 million in the fourth quarter

 

•Efficiency ratio of 53.6%, or 52.7% on an operating basis

 

•Net recoveries of $305,000, or one basis point as a percent of average loans, down 6 basis points from the fourth quarter

 

•Nonperforming assets of 0.30% of total assets, down 5 basis points compared to December 31, 2020

 

•Total loan deferrals of $48 million or 0.4% of the total loan portfolio compared to $71 million or 0.6% in the fourth quarter

 

•Quarterly common shareholder dividend of $0.19 per share declared during the quarter, an increase of 6% year-over-year

 

•Successfully completed the operational conversion of Seaside during the quarter

 

 

Conference Call

 

United will hold a conference call on Wednesday, April 21, 2021, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 9792368. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com. 

 2 
 

 

UNITED COMMUNITY BANKS, INC.                        
Selected Financial Information
   2021   2020     
(in thousands, except per share data)  First
Quarter		   Fourth
Quarter		   Third
Quarter		   Second
Quarter		   First
Quarter		   First Quarter
2021 - 2020
Change		 
INCOME SUMMARY                              
Interest revenue  $141,542   $156,071   $141,773   $123,605   $136,547      
Interest expense   9,478    10,676    13,319    14,301    17,941      
Net interest revenue   132,064    145,395    128,454    109,304    118,606    11%
(Release of) provision for credit losses   (12,281)   2,907    21,793    33,543    22,191      
Noninterest income   44,705    41,375    48,682    40,238    25,814    73 
Total revenue   189,050    183,863    155,343    115,999    122,229    55 
Expenses   95,194    106,490    95,981    83,980    81,538    17 
Income before income tax expense   93,856    77,373    59,362    32,019    40,691    131 
Income tax expense   20,150    17,871    11,755    6,923    8,807    129 
Net income   73,706    59,502    47,607    25,096    31,884    131 
Merger-related and other charges   1,543    2,452    3,361    397    808      
Income tax benefit of merger-related and other charges   (335)   (552)   (519)   (87)   (182)     
Net income - operating (1)  $74,914   $61,402   $50,449   $25,406   $32,510    130 
                               
Pre-tax pre-provision income (5)  $81,575   $80,280   $81,155   $65,562   $62,882    30 
                               
PERFORMANCE MEASURES                              
Per common share:                              
Diluted net income - GAAP  $0.82   $0.66   $0.52   $0.32   $0.40    105 
Diluted net income - operating (1)   0.83    0.68    0.55    0.32    0.41    102 
Cash dividends declared   0.19    0.18    0.18    0.18    0.18    6 
Book value   22.15    21.90    21.45    21.22    20.80    6 
Tangible book value (3)   17.83    17.56    17.09    16.95    16.52    8 
Key performance ratios:                              
Return on common equity - GAAP (2)(4)   15.37%   12.36%   10.06%   6.17%   7.85%     
Return on common equity - operating (1)(2)(4)   15.63    12.77    10.69    6.25    8.01      
Return on tangible common equity - operating (1)(2)(3)(4)   19.68    16.23    13.52    8.09    10.57      
Return on assets - GAAP (4)   1.62    1.30    1.07    0.71    0.99      
Return on assets - operating (1)(4)   1.65    1.34    1.14    0.72    1.01      
Return on assets - pre-tax pre-provision (4)(5)   1.80    1.77    1.86    1.86    1.95      

Return on assets - pre-tax pre-provision, excluding merger-related and other charges (1)(4)(5)

   1.83    1.82    1.93    1.87    1.98      
Net interest margin (fully taxable equivalent) (4)   3.22    3.55    3.27    3.42    4.07      
Efficiency ratio - GAAP   53.55    56.73    54.14    55.86    56.15      
Efficiency ratio - operating (1)   52.68    55.42    52.24    55.59    55.59      
Equity to total assets   10.95    11.29    11.47    11.81    12.54      
Tangible common equity to tangible assets (3)   8.57    8.81    8.89    9.12    10.22      
                               
ASSET QUALITY                              
Nonperforming loans  $55,900   $61,599   $49,084   $48,021   $36,208    54 
Foreclosed properties   596    647    953    477    475      
Total nonperforming assets ("NPAs")   56,496    62,246    50,037    48,498    36,683    54 
Allowance for credit losses - loans   126,866    137,010    134,256    103,669    81,905    55 
Net charge-offs   (305)   1,515    2,538    6,149    8,114      
Allowance for credit losses - loans to loans   1.09%   1.20%   1.14%   1.02%   0.92%     
Net charge-offs to average loans (4)   (0.01)   0.05    0.09    0.25    0.37      
NPAs to loans and foreclosed properties   0.48    0.55    0.42    0.48    0.41      
NPAs to total assets   0.30    0.35    0.29    0.32    0.28      
                               
AVERAGE BALANCES ($ in millions)                              
Loans  $11,433   $11,595   $11,644   $9,773   $8,829    29 
Investment securities   3,991    3,326    2,750    2,408    2,520    58 
Earning assets   16,782    16,394    15,715    12,958    11,798    42 
Total assets   18,023    17,698    17,013    14,173    12,944    39 
Deposits   15,366    15,057    14,460    12,071    10,915    41 
Shareholders’ equity   2,025    1,994    1,948    1,686    1,653    23 
Common shares - basic (thousands)   87,322    87,258    87,129    78,920    79,340    10 
Common shares - diluted (thousands)   87,466    87,333    87,205    78,924    79,446    10 
                               
AT PERIOD END ($ in millions)                              
Loans  $11,679   $11,371   $11,799   $10,133   $8,935    31 
Investment securities   4,332    3,645    3,089    2,432    2,540    71 
Total assets   18,557    17,794    17,153    15,005    13,086    42 
Deposits   15,993    15,232    14,603    12,702    11,035    45 
Shareholders’ equity   2,031    2,008    1,967    1,772    1,641    24 
Common shares outstanding (thousands)   86,777    86,675    86,611    78,335    78,284    11 

 

(1) Excludes merger-related and other charges. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses. 

 3 
 

 

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

  

 

 4 
 

 

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

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

 5 
 
UNITED COMMUNITY BANKS, INC.            
Financial Highlights            
Credit Quality
   2021   2020 
(in thousands)  First
Quarter		   Fourth
Quarter		   Third
Quarter		 
NONACCRUAL LOANS               
Owner occupied RE  $7,908   $8,582   $11,075 
Income producing RE   13,740    15,149    12,230 
Commercial & industrial   13,864    16,634    3,534 
Commercial construction   1,984    1,745    1,863 
Equipment financing   2,171    3,405    3,137 
     Total commercial   39,667    45,515    31,839 
Residential mortgage   14,050    12,858    13,864 
Home equity lines of credit   1,707    2,487    2,642 
Residential construction   322    514    479 
Consumer   154    225    260 
     Total  $55,900   $61,599   $49,084 

 

 

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

 

(1)  Annualized. 

 6 
 

 

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

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

 

 7 
 
UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)

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

 

 8 
 

 

Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,

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

 

(1)Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3)Securities available for sale are shown at amortized cost. Pretax unrealized gains of $58.3 million and $52.9 million in 2021 and 2020, respectively, are included in other assets for purposes of this presentation.
(4)Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

 

 9 
 

 

About United Community Banks, Inc.

 

United Community Banks, Inc. (NASDAQ: UCBI) (United) provides a full range of banking, wealth management and mortgage services for relationship oriented consumers and business owners. The company, known as “The Bank That Service Built” has been recognized by JD Power, Forbes, and CSP for having outstanding customer service ratings for many years. United has $18.6 billion in assets and 161 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. In 2020, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking six out of the last seven years United earned the coveted award. United was also named "Best Banks to Work For" by American Banker in 2020 for the fourth year in a row based on employee satisfaction. Forbes included United in its inaugural list of the World’s Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. United also received five Greenwich Excellence Awards in 2020 for excellence in Small Business Banking, including a national award for Overall Satisfaction. Additional information about United can be found at www.ucbi.com.

 

 

Non-GAAP Financial Measures

 

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

 

# # #

 10 

 

Exhibit 99.2

1Q21 Investor Presentation April 20, 2021

 

 

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, potential tax law changes 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 2020 Annual Report on Form 10 - K 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

 

 

161 BANKING OFFICES ACROSS THE SOUTHEAST #1 IN CUSTOMER SATISFACTION i n 2020 with Retail Banking in the Southeast – J.D. Power United Community Banks, Inc. $18.6 BILLION IN TOTAL ASSETS $2.4 BILLION IN AUA $ 16.0 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 BANKS TO WORK FOR i n 2020 for the fourth consecutive year – American Banker $0.19 QUARTERLY DIVIDEND – UP 6% Y OY 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 153 branches, 8 loan production sites, and 4 mortgage loan offices across six Southeast states 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 $11.7 BILLION IN TOTAL LOANS Company Overview 13.2 % TIER 1 RBC 100 BEST BANKS IN AMERICA i n 2021 f or the eighth 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 Banking Offices *See glossary located at the end of this presentation for reference on certain acronyms

 

 

$20.80 $21.90 $22.15 $16.52 $17.56 $17.83 1Q20 4Q20 1Q21 Book Value Per Share GAAP Tangible $0.82 Diluted earnings per share – GAAP $0.83 Diluted earnings per share – operating 1.62% Return on average assets – GAAP 1.65% Return on average assets - operating 1.83% PTPP return on average assets - operating 0.14% Cost of deposits 38% DDA / Total Deposits 15.4% Return on common equity - GAAP 19.7% Return on tangible common equity - operating 8% Annualized 1Q operating expense decline (excluding $8.5 mm foundation contribution in 4Q20) Other 1Q notable items: $9.8 mm of PPP fee income ($0.09 EPS) $12.3 mm provision release due to improved economic forecast ($0.11 EPS) 1Q21 Highlights (1) See non - GAAP reconciliation table slides in the Appendix for a reconciliation of operating performance measures to GAAP performance $0.40 $0.66 $0.82 $0.41 $0.68 $0.83 1Q20 4Q20 1Q21 Diluted Earnings Per Share GAAP Operating (1) 0.99% 1.30% 1.62% 1.01% 1.34% 1.65% 1Q20 4Q20 1Q21 Return on Average Assets GAAP Operating 1.95% 1.77% 1.80% 1.98% 1.82% 1.83% 1Q20 4Q20 1Q21 PTPP Return on Average Assets PTPP Operating PTPP (1) (1) (1) 4 (1) (1) (1) 3% Annualized 1Q EOP core loan growth (excluding PPP loans) 33% Annualized 1Q EOP core transaction deposit growth

 

 

Long - Term Financial Performance & Shareholder Return 5 0.91% 0.98% 1.06% 1.09% 1.40% 1.51% 1.07% 1.65% 2014 2015 2016 2017 2018 2019 2020 1Q21 ROA - operating UCBI KRX (1) 9.32% 10.24% 11.86% 12.02% 15.69% 15.81% 12.24% 19.68% 2014 2015 2016 2017 2018 2019 2020 1Q21 ROTCE - operating UCBI KRX $334 $318 $270 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Shareholder Return $ UCBI Outperformance Performance for the period ended March 31, 2021 United Community Banks, Inc. S&P Financials Index KBW Nasdaq Regional Bank Index (KRX) 1 - YEAR 92% 83% 98% 3 - YEAR 19% 26% 22% 5 - YEAR 106% 110% 72% 10 - YEAR 234% 218% 170% (1) See non - GAAP reconciliation table slides in the Appendix for a reconciliation of operating performance measures to GAAP performance (1)

 

 

$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

 

 

41% 8% 22% 1% 12% 6% 2% 8% Residential Mortgage Diversified Loan Portfolio 1 Q21 Total Loans $11.7 billion (1) C&I includes commercial and industrial loans, owner - occupied CRE loans and Navitas (equipment finance) loans Quarter Highlights x Loans increased $308 million in 1Q21, primarily due to the addition of $518 million in third round PPP loans x 1Q21 core loan growth of $71 million, or 3% annualized excluding PPP Granular Loan Portfolio x Construction & CRE ratio as a percentage of total RBC = 66%/200% x Top 25 relationships total $569 million, 5% of total loans x SNC’s outstanding of $239 million, 2.1% of total loans x Navitas 8% of total loans x Project lending limit of $20 million x Relationship limit of $35 million 7 C&I Commercial Construction CRE Other Consumer PPP Home Equity Residential Construction (1)

 

 

Credit Quality 8 x 1Q21 net recoveries of $305 thousand, or 0.01% of average loans, annualized • The quarter benefited from $2.8 million of C&I recoveries x 2020 NCOs of $18.3 million, or 0.17% of average loans x The provision for credit losses was negative $12.3 million, reflecting a more favorable economic forecast x 2020 included $80.4 m illion of provisioning due to economic uncertainty caused by the pandemic Net Charge - Offs as % of Average Loans 0.37% 0.25% 0.09% 0.05% - 0.01% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 1Q20 2Q20 3Q20 4Q20 1Q21 Provision for Credit Losses ($ in millions) $22.2 $33.5 $21.8 $2.9 - $12.3 -$15.0 -$10.0 -$5.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 1Q20 2Q20 3Q20 4Q20 1Q21

 

 

x Non performing assets declined by $5.8 million during the quarter and stand at 0.48% of total loans x Substandard, but still accruing, were flat quarter over quarter as a % of total loans x Special mention loans increased $79 million from 4Q20, to 3.2% of total loans • The primary drivers of the increase are five Senior Care properties that were downgraded in 1Q21 totaling $65 million Higher - Risk Loan Trends 9 Loan Deferrals Special Mention & Substandard Accruing Loans as a % of Total Loans Non - Performing Assets as a % of Total Loans $194 $1,850 $365 $71 $48 1.9% 15.9% 3.1% 0.6% 0.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% $0 $500 $1,000 $1,500 $2,000 1Q20 2Q20 3Q20 4Q20 1Q21 Loan Deferrals ($ in millions) % of Total Loans 0.41% 0.48% 0.42% 0.55% 0.48% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 1Q20 2Q20 3Q20 4Q20 1Q21 1.3% 1.1% 1.2% 2.6% 3.2% 1.3% 1.1% 1.1% 1.5% 1.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 1Q20 2Q20 3Q20 4Q20 1Q21 Special Mention (%) Substandard Accruing(%)

 

 

10 ACL Walk - Forward ACL / Loans: 1.30% ACL / Loans excl. PPP: 1.38% 1.16% 1.26% 147,568 135,592 $1,028 ( $1,832 ) $305 ( $428 ) ( $11,049 ) 4Q20 ACL Loan Growth Reserve for Unfunded Commitments NCOs Specific Reserve Model / Forecast Changes 1Q21 ACL ($000)

 

 

Capital Ratios 11 x Quarterly dividend of $ 0.19 per share x Redeemed $11.3 million, 6.25% subordinated debt and $4.4 million, 4.25% TruPs in 1Q21 x If no M&A occurs, we will consider resuming share repurchases in 2021 x Capital greater than peers offers flexibility as the economy normalizes Holding Company 1Q20 3Q20 4Q20 4Q20 KRX Peer Median UCBI 1Q21* vs. KRX Common Equity Tier 1 Capital 12.9 % 12.3 % 12.3 % 11.8 % + 0.5 % 12.4 % Tier 1 Risk - Based Capital 13.1 13.1 13.1 12.1 + 1.0 13.2 Total Risk - Based Capital 14.9 15.3 15.2 14.3 + 0.9 15.0 Leverage 10.4 9.4 9.3 8.9 + 0.4 9.4 Tangible Common Equity to Tangible Assets 10.2 8.9 8.8 8.6 + 0.2 8.6 *1Q21 regulatory capital ratios are preliminary

 

 

$118.6 $145.4 $132.1 1Q20 4Q20 1Q21 Net Interest Revenue / Margin (1) $ in millions x Net interest margin decreased 33 bps from 4Q20, mainly driven by lower PPP fee accretion x L oan accretion totaled $5.0 million and contributed 12 bps to the margin, down 5 bps from 4Q20 x PPP fees of $9.8 million in 1Q21 compared to $19.4 million in 4Q20 x Of the 7 bps of core margin pressure, 4 bps resulted from excess liquidity as strong deposit growth continued to move average cash and securities balances higher x We have $1.15 billion of variable rate loans currently priced at their floors 4.07% 3.55% 3.22% Net Interest Revenue ($ in millions) Net Interest Margin (1) Net interest margin is calculated on a fully - taxable equivalent basis (1) 12 1Q21 NIM Compression 3.22% 3.55% ( 0.04% ) ( 0.03% ) ( 0.05% ) ( 0.21% ) 4Q NIM Excess Liquidity Low Interest Rates / Other Purchased Loan Accretion PPP Fees 1Q NIM (%)

 

 

38% 21% 24% 7% 10% DDA MMDA Savings Time NOW x Total deposits were up $761 million, or 20% annualized from 4Q20 and up $5.0 billion, or 45% YOY • Excluding Seaside, total deposits were up $3.2 billion, or 29% YOY x Core transaction deposits were up $948 million, or 33% annualized from 4 Q20 and up $4.7 billion, or 61% YOY • Excluding Seaside, core transaction deposits were up $3.4 billion, or 44% YOY x Cost of deposits down 3 bps to 0.14% in 1Q21, driven by continued noninterest bearing deposit growth and deposit rate cuts Valuable Deposit Mix 1Q21 Total Deposits $ 16.0 billion 1Q21 Highlights Strong Core Deposit Growth Over Time 13 Note: Core transaction accounts include demand deposits, interest - bearing demand, money market and savings accounts, excluding public funds deposits $11.0 $12.7 $14.6 $15.2 $16.0 1Q20 2Q20 3Q20 4Q20 1Q21 Total Deposits Trend ($ in billions) DDA NOW MMDA Savings Time

 

 

Noninterest Income $ in millions $8.6 $8.5 $7.6 $5.6 $9.2 $10.5 $1.6 $3.2 $3.0 $8.3 $19.0 $22.6 $1.7 $1.5 $1.0 1Q20 4Q20 1Q21 Service Charges Other Brokerage / Wealth Mgmt Mortgage Loan sale gains $25.8 $41.4 $44.7 Linked Quarter x Fees up $3.3 million • Mortgage fees up $3.6 million from 4Q20 primarily due to the positive impact of rising interest rates on the MSR asset • Rate locks were up with $993 million in 1Q21 compared to $792 million in 4Q20 • Record mortgage closings of $666 million in 1Q21 versus $609 million in 4Q20 • 1Q21 mortgage production purchase/refi mix was 42%/58% • 1Q21 mortgage results included a $1.3 million MSR write - up compared to a $1.7 million write - down in 4Q20 • Gain on sale of SBA loans was $1.0 million on $11.3 million of SBA loan sales Year - over - Year x Fees up $18.9 million • Mortgage rate locks up 24% compared to last year ($993 million in 1Q21 compared to $801 million in 1Q20) 14

 

 

$81.5 $106.5 $95.2 $80.7 $104.0 $93.7 1Q20 4Q20 1Q21 56.2% 56.7% 53.6% 55.6% 55.4% 52.7% GAAP Operating (1) Efficiency Ratio Expenses Operating (1) GAAP Disciplined Expense Management $ in millions Linked Quarter x GAAP and operating expenses decreased 11% and 10%, respectively • Salaries and benefits were down $1.2 million mainly due to $1.8 million of Paid Time Off hours accrued in 4Q20 as a result of COVID • Excluding the $8.5 million foundation contribution in 4Q20, GAAP and operating expenses decreased 3% and 2%, respectively • Mortgage commissions increased $1.0 million from 4Q20 Year - over - Year x GAAP and operating expenses increased 17% and 16%, respectively • The majority of the increase is driven by the Seaside acquisition on July 1, 2020 (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 15

 

 

x As of March 31 st , approximately 75% of our first and second round PPP loans, representing $982 million in loans, have been forgiven by the SBA x In 1Q21, we recognized $9.8 million in PPP fees x We have $28 million of PPP fees remaining to recognize x Average loan amount fully forgiven of $96 thousand 16 PPP Update $518 $335 $982 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 Third Round First & Second Round PPP Totals ($ in millions) Not Forgiven Forgiven

 

 

1 Q21 INVESTOR PRESENTATION Exhibits

 

 

9.5% 3.1% 10.6% 34.1% 29.4% 13.3% Top 50 Hotels by Sector Selected Segments – Hotels 18 Extended Stay Interstate, Limited Service Conference Center Urban, Limited Service x Top 50 hotel loans outstanding totaled $291 million as of 1Q21, or 2% of total loans x Original loan to value low at 59% on average for UCBI portfolio x Construction comprises 8% of top 50 hotel outstanding balances x Weighted average occupancy increased 9% from 4Q20 to 60% in top 50 hotel portfolio x Nonaccrual hotel loans of $4.9 million as of 1Q21 Airport Leisure $159 $172 $68 $77 $48 $43 4Q20 1Q21 Top 50 Hotel Risk Rating $ in millions Pass Special Mention Substandard Accruing

 

 

Selected Segments – Senior Care 19 x Senior Care lending team are dedicated specialists with significant experience in the space x Senior Care funded exposure for UCBI totaled $535 million as of 1Q21, or 5% of total loans x Senior Care borrowers provide significant equity up front with an average LTV of 57% at origination x As of March 31 st , there was one Senior Care loan for $4.8 million in nonaccrual x As of March 31 st , $172 million of Senior Care loans were special mention and $43 million were substandard accruing 1 % 20% 25% 49% 6% 11.9% 10.7% 6.4% 3.1% 67.9% Senior Care by Project Type Skilled Nursing Facility Memory Care Independent Living Assisted Living 2.4% 58.6% 39.0% Senior Care by Project Stage Construction Lease Up Stabilized Independent / Assisted Living, Memory Care Hybrid

 

 

x Navitas 1Q21 NCOs = 0.70% x Navitas ’ cumulative net loss rates have approximated 2 % for the last 10 years x Navitas ACL - Loans equated to 1.88% as of 1Q21 x Rating agencies have historically assigned Navitas originations with expected through - the - cycle loss rates of 3.1% to 3.8 % x Total Navitas deferrals are 1.3% of the total Navitas loan portfolio at 1Q21 Credit Quality — Navitas 20 0.89% 0.58% 0.67% 0.84% 0.81% 0.87% 0.93% 0.75% 0.70% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Net Charge - Offs as % of Average Loans

 

 

Expanding Mortgage Throughout the Footprint x We have been consistently investing in our mortgage business x Mortgage production per originator, per quarter increased to $7.6 million in 1Q21, or 75% above 1Q20 x Purchase / Refi mix has shifted from 55% / 45% in 1Q20 to 42% / 58% in 1Q21 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 21 $312 $390 $508 $411 $801 $802 $910 $792 $993 9 13 15 15 17 25 25 24 24 0 5 10 15 20 25 30 $0 $200 $400 $600 $800 $1,000 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Funded Locks / MLO Mortgage Locks ($) Mortgage Locks Mortgage Locks ($ millions) Funded Locks / MLO 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Loans Sold ($ millions) $111 $153 $220 $226 $259 $397 $402 $409 $337 Gain on Sale % 2.70% 3.70% 3.40% 3.70% 2.90% 4.50% 5.40% 5.10% 4.50%

 

 

Non - GAAP Reconciliation Tables $ in thousands, except per share data 22 1Q20 2Q20 3Q20 4Q20 1Q21 Expenses Expenses - GAAP 81,538$ 83,980$ 95,981$ 106,490$ 95,194$ Merger-related and other charges (808) (397) (3,361) (2,452) (1,543) Expenses - Operating 80,730$ 83,583$ 92,620$ 104,038$ 93,651$ Diluted Earnings per share Diluted earnings per share - GAAP 0.40$ 0.32$ 0.52$ 0.66$ 0.82$ Merger-related and other charges 0.01 - 0.03 0.02 0.01 Diluted earnings per share - Operating 0.41 0.32 0.55 0.68 0.83 Book Value per share Book Value per share - GAAP 20.80$ 21.22$ 21.45$ 21.90$ 22.15$ Effect of goodwill and other intangibles (4.28) (4.27) (4.36) (4.34) (4.32) Tangible book value per share 16.52$ 16.95$ 17.09$ 17.56$ 17.83$ Return on Tangible Common Equity Return on common equity - GAAP 7.85 % 6.17 % 10.06 % 12.36 % 15.37 % Effect of merger-related and other charges 0.16 0.08 0.63 0.41 0.26 Return on common equity - Operating 8.01 6.25 10.69 12.77 15.63 Effect of goodwill and intangibles 2.56 1.84 2.83 3.46 4.05 Return on tangible common equity - Operating 10.57 % 8.09 % 13.52 % 16.23 % 19.68 %

 

 

Non - GAAP Reconciliation Tables $ in thousands, except per share data 23 1Q20 2Q20 3Q20 4Q20 1Q21 Return on Assets Return on assets - GAAP 0.99 % 0.71 % 1.07 % 1.30 % 1.62 % Merger-related and other charges 0.02 0.01 0.07 0.04 0.03 Return on assets - Operating 1.01 % 0.72 % 1.14 % 1.34 % 1.65 % Return on Assets to return on assets- pre-tax pre-provision Return on assets - GAAP 0.99 % 0.71 % 1.07 % 1.30 % 1.62 % Income tax expense 0.27 0.20 0.28 0.40 0.46 Provision for credit losses 0.69 0.95 0.51 0.07 (0.28) Return on assets - pre-tax, pre-provision 1.95 1.86 1.86 1.77 1.80 Merger-related and other charges 0.03 0.01 0.07 0.05 0.03 Return on assets - pre-tax, pre-provision, excluding merger-related and other charges 1.98 % 1.87 % 1.93 % 1.82 % 1.83 % Efficiency Ratio Efficiency Ratio - GAAP 56.15 % 55.86 % 54.14 % 56.73 % 53.55 % Merger-related and other charges (0.56) (0.27) (1.90) (1.31) (0.87) Efficiency Ratio - Operating 55.59 % 55.59 % 52.24 % 55.42 % 52.68 % Tangible common equity to tangible assets Equity to assets ratio - GAAP 12.54 % 11.81 % 11.47 % 11.29 % 10.95 % Effect of goodwill and other intangibles (2.32) (2.05) (2.02) (1.94) (1.86) Effect of preferred equity - (0.64) (0.56) (0.54) (0.52) Tangible common equity to tangible assets ratio 10.22 % 9.12 % 8.89 % 8.81 % 8.57 %

 

 

Glossary 24 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 USA 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