UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
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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:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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| Item 2.02 | Results of Operations and Financial Condition. |
| On January 18, 2022, United Community Banks, Inc. (“United”) issued a press release announcing financial results for the fourth 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 January 19, 2022, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the fourth quarter of 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 January 18, 2022 (furnished only). | |
| 99.2 | Slide presentation to be used during January 19, 2022 earnings call (furnished only). | |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UNITED COMMUNITY BANKS, INC. | ||
| By: | /s/ Jefferson L. Harralson | |
| Jefferson L. Harralson | ||
| Executive Vice President and | ||
| Chief Financial Officer | ||
| Date: January 18, 2022 | ||
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 Fourth Quarter Results
GAAP EPS of $0.55, Return on Assets of 0.96% and Return on Common Equity of 9.3%
GREENVILLE, SC – January 18, 2022 - United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the fourth quarter was $52.0 million and pre-tax, pre-provision income was $65.6 million. Diluted earnings per share of $0.55 for the quarter represented a decrease of $0.11 or 17%, from the fourth quarter a year ago, and represented a decrease of $0.27 or 33% from the third quarter of 2021. On an operating basis, United’s diluted earnings per share of $0.64 was down 6% from the year ago quarter. The primary driver of the reduced earnings in both periods is lower levels of accretion from PPP loans, as those loans have continued to decline due to success in executing the forgiveness process. Additionally, in the third quarter, charges associated with the Aquesta acquisition, such as merger charges and a $3.27 million provision to establish an initial allowance for credit losses for acquired Aquesta loans, reduced GAAP earnings by approximately $9 million or ten cents per share. On an operating basis, United’s ROA was 1.10% and its return on tangible common equity was 13.9%. On a pre-tax, pre-provision basis, operating return on assets was 1.40% for the quarter. Highlights for the quarter include strong annualized organic loan growth (excluding PPP and loans received through the Aquesta acquisition) of 7% and 17% annualized organic deposit growth.
Chairman and CEO Lynn Harton stated, “We are very pleased by United’s performance this quarter and in 2021. In the quarter, both loan and deposit growth were strong and noninterest income benefited from strong, but seasonally lower, mortgage production and a great SBA quarter.” Harton continued, “On the strategic front, we completed the acquisition of Aquesta Financial Holdings, Inc. and Aquesta Bank on October 1, boosting our Charlotte presence and adding the Wilmington, North Carolina market, both of which are growth markets that fit well with our footprint and culture. We also completed the operational conversion of Aquesta in mid-November, bringing the United brand to these great markets. We are proud that this outstanding team of bankers has joined us and we believe that they are a great fit for United. Finally, while not included in the quarterly results, on January 1 we completed the acquisition of Reliant Bancorp, Inc., expanding our Tennessee presence into the fast-growing Nashville MSA with a very high performance organization.”
Total loans increased by $569 million during the quarter—impacted by $501 million of loans from the Aquesta acquisition. Excluding the effect of PPP loans and loans received from the Aquesta acquisition, core organic loan growth was 7% annualized. Core transaction deposits grew by $948 million during the quarter, or 28% annualized. Excluding deposits received from the Aquesta acquisition, core transaction deposits grew by 10% annualized. United’s cost of deposits decreased by 1 basis point to 0.06%. The net interest margin decreased by 31 basis points from the third quarter due mainly to lower PPP loan fee accretion and an increase in liquid assets due to the continued deposit growth.
1
Mr. Harton concluded, “I believe 2022 will be another great year for United. We enter the year with strong business momentum, led by an outstanding team of engaged bankers throughout the company. I am very proud that in October, and for the fifth consecutive year, United was named one of the Best Banks to Work for in 2021 across the nation by American Banker. One of our most important measures of success for us is to “Be a Great Place to Work for Great People”. Banking is a service and experience business and success begins with creating an organization where the best people can be fulfilled and build a career.”
2021 Financial Highlights:
| • | Full year EPS of $2.97, an increase of 55% compared to 2020; full year operating EPS of $3.09, an increase of 56% from 2020 |
| • | Return on assets of 1.37%, or 1.42% on an operating basis |
| • | Pre-tax, pre-provision return on assets of 1.65% on an operating basis |
| • | Return on common equity of 13.1% |
| • | Return on tangible common equity of 17.3% on an operating basis |
| • | Completed the mergers with FinTrust on July 1 and Aquesta Financial Corporation and its bank subsidiary Aquesta Bank on October 1 |
| • | A release of provision for credit losses of $37.6 million compared to a provision of $80.4 million in 2020, mostly due to the improved economic forecasts |
| • | Loan growth of $389 million or $346 million excluding loans acquired from Aquesta and PPP payoffs |
| • | Core transaction deposits were up $2.8 billion compared to 2020; excluding Aquesta, 2021 core transaction deposits were up $2.2 billion, or 19.2% |
| • | Net interest margin of 3.07%, which was down 48 basis points from last year due to a number of factors, including lower PPP fee accretion, the low rate environment, and increasing balance sheet liquidity |
| • | Continued strong mortgage rate locks of $3.1 billion compared to a record of $3.3 billion a year ago |
| • | Noninterest income was up $1.7 million or 1% as an increase in wealth management fees and gains from loan sales offset the $17.6 million decline in mortgage fees |
| • | Efficiency ratio of 55.8%, or 53.8% on an operating basis |
| • | Net charge-offs of $38,000 |
Fourth Quarter 2021 Financial Highlights:
| • | Net income of $52.0 million and pre-tax, pre-provision income of $65.6 million |
| • | EPS decreased by 17% compared to fourth quarter 2020 on a GAAP basis and 6% on an operating basis; compared to third quarter 2021, EPS decreased by 33% on a GAAP basis and 23% on an operating basis due to lower PPP accretion and a smaller provision release in the fourth quarter |
| • | Return on assets of 0.96%, or 1.10% on an operating basis |
| • | Pre-tax, pre-provision return on assets of 1.40% on an operating basis |
| • | Return on common equity of 9.3% |
2
| • | Return on tangible common equity of 13.9% on an operating basis |
| • | A release of provision for credit losses of $647,000 which reduced the allowance for loan losses to 0.87% of loans from 0.89% in the third quarter |
| • | Loan production of $1.3 billion, resulting in core loan growth of 7%, annualized for the quarter, excluding the impact of $122 million in PPP loans being forgiven and the addition of $501 million in loans from Aquesta |
| • | Core transaction deposits were up $948 million; excluding Aquesta, fourth quarter core transaction deposits grew $333 million or 10% annualized |
| • | Net interest margin of 2.81% was down 31 basis points from the third quarter, due to lower PPP fee accretion, continued strong deposit growth and an earning asset mix change toward cash and securities |
| • | Mortgage closings of $522 million compared to $609 million a year ago; mortgage rate locks of $695 million compared to $792 million a year ago |
| • | Noninterest income was down $2.9 million on a linked quarter basis, primarily driven by lower mortgage fees |
| • | Noninterest expenses increased by $12.4 million compared to the third quarter on a GAAP basis and by $3.9 million on an operating basis, mostly due to adding the operating expenses of Aquesta which was acquired on October 1 |
| • | Efficiency ratio of 62.1%, or 56.5% on an operating basis |
| • | Net charge-offs of $248,000 or 1 basis point as a percent of average loans, down 1 basis point from the net charge-offs experienced in the third quarter |
| • | Nonperforming assets of 0.16% of total assets, down 7 basis points compared to September 30, 2021 |
| • | Quarterly common shareholder dividend of $0.20 per share declared during the quarter, an increase of 11% year-over-year |
| • | Completed the acquisition of Aquesta Financial Holdings, Inc. (“Aquesta”) with $756 million in assets on October 1, 2021; this acquisition is expected to add $0.08 in EPS accretion in 2022 with cost savings fully phased in |
| • | Completed the acquisition of Reliant Bancorp, Inc. (“Reliant”) with $3.0 billion in assets on January 1, 2022; this acquisition is expected to add $0.15 in EPS accretion in 2022 and $0.22 in 2023 with cost savings fully phased in |
Conference Call
United will hold a conference call on Wednesday, January 19, 2022, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10162699/f0590f1c98. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and available for replay for 30 days by selecting “Events & Presentations” within the Investor Relations section of United’s website at www.ucbi.com.
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UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
| 2021 | 2020 | Fourth Quarter |
For the Twelve Months Ended December 31, |
YTD 2021- | ||||||||||||||||||||||||||||||||
| Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter | 2021- 2020 Change |
2021 | 2020 | 2020 Change |
||||||||||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 143,768 | $ | 147,675 | $ | 145,809 | $ | 141,542 | $ | 156,071 | $ | 578,794 | $ | 557,996 | ||||||||||||||||||||||
| Interest expense | 6,213 | 6,636 | 7,433 | 9,478 | 10,676 | 29,760 | 56,237 | |||||||||||||||||||||||||||||
| Net interest revenue | 137,555 | 141,039 | 138,376 | 132,064 | 145,395 | (5 | )% | 549,034 | 501,759 | 9 | % | |||||||||||||||||||||||||
| (Release of) provision for credit losses | (647 | ) | (11,034 | ) | (13,588 | ) | (12,281 | ) | 2,907 | (37,550 | ) | 80,434 | ||||||||||||||||||||||||
| Noninterest income | 37,177 | 40,095 | 35,841 | 44,705 | 41,375 | (10 | ) | 157,818 | 156,109 | 1 | ||||||||||||||||||||||||||
| Total revenue | 175,379 | 192,168 | 187,805 | 189,050 | 183,863 | (5 | ) | 744,402 | 577,434 | 29 | ||||||||||||||||||||||||||
| Expenses | 109,156 | 96,749 | 95,540 | 95,194 | 106,490 | 3 | 396,639 | 367,989 | 8 | |||||||||||||||||||||||||||
| Income before income tax expense | 66,223 | 95,419 | 92,265 | 93,856 | 77,373 | 347,763 | 209,445 | |||||||||||||||||||||||||||||
| Income tax expense | 14,204 | 21,603 | 22,005 | 20,150 | 17,871 | 77,962 | 45,356 | |||||||||||||||||||||||||||||
| Net income | 52,019 | 73,816 | 70,260 | 73,706 | 59,502 | 269,801 | 164,089 | |||||||||||||||||||||||||||||
| Merger-related and other charges | 9,912 | 1,437 | 1,078 | 1,543 | 2,452 | 13,970 | 7,018 | |||||||||||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (2,265 | ) | (328 | ) | (246 | ) | (335 | ) | (552 | ) | (3,174 | ) | (1,340 | ) | ||||||||||||||||||||||
| Net income - operating (1) | $ | 59,666 | $ | 74,925 | $ | 71,092 | $ | 74,914 | $ | 61,402 | (3 | ) | $ | 280,597 | $ | 169,767 | 65 | |||||||||||||||||||
| Pre-tax pre-provision income (5) | $ | 65,576 | $ | 84,385 | $ | 78,677 | $ | 81,575 | $ | 80,280 | (18 | ) | $ | 310,213 | $ | 289,879 | 7 | |||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||||||||||
| Diluted net income - GAAP | $ | 0.55 | $ | 0.82 | $ | 0.78 | $ | 0.82 | $ | 0.66 | (17 | ) | $ | 2.97 | $ | 1.91 | 55 | |||||||||||||||||||
| Diluted net income - operating (1) | 0.64 | 0.83 | 0.79 | 0.83 | 0.68 | (6 | ) | 3.09 | 1.98 | 56 | ||||||||||||||||||||||||||
| Common stock cash dividends declared | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 11 | 0.78 | 0.72 | 8 | |||||||||||||||||||||||||||
| Book value | 23.63 | 23.25 | 22.81 | 22.15 | 21.90 | 8 | 23.63 | 21.90 | 8 | |||||||||||||||||||||||||||
| Tangible book value (3) | 18.42 | 18.68 | 18.49 | 17.83 | 17.56 | 5 | 18.42 | 17.56 | 5 | |||||||||||||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||||||||||
| Return on common equity - GAAP (2)(4) | 9.32 | % | 14.26 | % | 14.08 | % | 15.37 | % | 12.36 | % | 13.14 | % | 9.25 | % | ||||||||||||||||||||||
| Return on common equity - operating (1)(2)(4) | 10.74 | 14.48 | 14.25 | 15.63 | 12.77 | 13.68 | 9.58 | |||||||||||||||||||||||||||||
| Return on tangible common equity - operating (1)(2)(3)(4) | 13.93 | 18.23 | 17.81 | 19.68 | 16.23 | 17.33 | 12.24 | |||||||||||||||||||||||||||||
| Return on assets - GAAP (4) | 0.96 | 1.48 | 1.46 | 1.62 | 1.30 | 1.37 | 1.04 | |||||||||||||||||||||||||||||
| Return on assets - operating (1)(4) | 1.10 | 1.50 | 1.48 | 1.65 | 1.34 | 1.42 | 1.07 | |||||||||||||||||||||||||||||
| Return on assets -pre-tax pre-provision (4)(5) | 1.21 | 1.70 | 1.64 | 1.80 | 1.77 | 1.58 | 1.85 | |||||||||||||||||||||||||||||
| Return on assets -pre-tax pre-provision, excluding merger related and other charges (1)(4)(5) | 1.40 | 1.73 | 1.67 | 1.83 | 1.82 | 1.65 | 1.90 | |||||||||||||||||||||||||||||
| Net interest margin (fully taxable equivalent) (4) | 2.81 | 3.12 | 3.19 | 3.22 | 3.55 | 3.07 | 3.55 | |||||||||||||||||||||||||||||
| Efficiency ratio - GAAP | 62.12 | 53.11 | 54.53 | 53.55 | 56.73 | 55.80 | 55.71 | |||||||||||||||||||||||||||||
| Efficiency ratio - operating (1) | 56.48 | 52.33 | 53.92 | 52.68 | 55.42 | 53.83 | 54.64 | |||||||||||||||||||||||||||||
| Equity to total assets | 10.61 | 10.89 | 11.04 | 10.95 | 11.29 | 10.61 | 11.29 | |||||||||||||||||||||||||||||
| Tangible common equity to tangible assets (3) | 8.09 | 8.53 | 8.71 | 8.57 | 8.81 | 8.09 | 8.81 | |||||||||||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||||||||||
| Nonperforming loans | $ | 32,812 | $ | 44,923 | $ | 46,123 | $ | 55,900 | $ | 61,599 | (47 | ) | $ | 32,812 | $ | 61,599 | (47 | ) | ||||||||||||||||||
| Foreclosed properties | 43 | 412 | 224 | 596 | 647 | (93 | ) | 43 | 647 | (93 | ) | |||||||||||||||||||||||||
| Total nonperforming assets (“NPAs”) | 32,855 | 45,335 | 46,347 | 56,496 | 62,246 | (47 | ) | 32,855 | 62,246 | (47 | ) | |||||||||||||||||||||||||
| Allowance for credit losses - loans and leases | 102,532 | 99,620 | 111,616 | 126,866 | 137,010 | (25 | ) | 102,532 | 137,010 | (25 | ) | |||||||||||||||||||||||||
| Allowance for credit losses - total | 113,524 | 110,875 | 122,460 | 135,592 | 147,568 | (23 | ) | 113,524 | 147,568 | (23 | ) | |||||||||||||||||||||||||
| Net charge-offs | 248 | 551 | (456 | ) | (305 | ) | 1,515 | (84 | ) | 38 | 18,316 | (100 | ) | |||||||||||||||||||||||
| Allowance for credit losses - loans and leases to loans | 0.87 | % | 0.89 | % | 0.98 | % | 1.09 | % | 1.20 | % | 0.87 | % | 1.20 | % | ||||||||||||||||||||||
| Allowance for credit losses - total to loans | 0.97 | 0.99 | 1.08 | 1.16 | 1.30 | 0.97 | 1.30 | |||||||||||||||||||||||||||||
| Net charge-offs to average loans (4) | 0.01 | 0.02 | (0.02 | ) | (0.01 | ) | 0.05 | — | 0.17 | |||||||||||||||||||||||||||
| NPAs to loans and foreclosed properties | 0.28 | 0.41 | 0.41 | 0.48 | 0.55 | 0.28 | 0.55 | |||||||||||||||||||||||||||||
| NPAs to total assets | 0.16 | 0.23 | 0.25 | 0.30 | 0.35 | 0.16 | 0.35 | |||||||||||||||||||||||||||||
| AVERAGE BALANCES ($ in millions) | ||||||||||||||||||||||||||||||||||||
| Loans | $ | 11,689 | $ | 11,205 | $ | 11,617 | $ | 11,433 | $ | 11,595 | 1 | $ | 11,486 | $ | 10,467 | 10 | ||||||||||||||||||||
| Investment securities | 5,544 | 5,122 | 4,631 | 3,991 | 3,326 | 67 | 4,830 | 2,752 | 76 | |||||||||||||||||||||||||||
| Earning assets | 19,542 | 18,078 | 17,540 | 16,782 | 16,394 | 19 | 17,996 | 14,226 | 27 | |||||||||||||||||||||||||||
| Total assets | 20,863 | 19,322 | 18,792 | 18,023 | 17,698 | 18 | 19,258 | 15,467 | 25 | |||||||||||||||||||||||||||
| Deposits | 18,037 | 16,637 | 16,132 | 15,366 | 15,057 | 20 | 16,550 | 13,135 | 26 | |||||||||||||||||||||||||||
| Shareholders’ equity | 2,223 | 2,119 | 2,060 | 2,025 | 1,994 | 11 | 2,107 | 1,821 | 16 | |||||||||||||||||||||||||||
| Common shares - basic (thousands) | 89,916 | 87,211 | 87,289 | 87,322 | 87,258 | 3 | 87,940 | 83,184 | 6 | |||||||||||||||||||||||||||
| Common shares - diluted (thousands) | 90,089 | 87,355 | 87,421 | 87,466 | 87,333 | 3 | 88,097 | 83,248 | 6 | |||||||||||||||||||||||||||
| AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||||
| Loans | $ | 11,760 | $ | 11,191 | $ | 11,391 | $ | 11,679 | $ | 11,371 | 3 | $ | 11,760 | $ | 11,371 | 3 | ||||||||||||||||||||
| Investment securities | 5,653 | 5,335 | 4,928 | 4,332 | 3,645 | 55 | 5,653 | 3,645 | 55 | |||||||||||||||||||||||||||
| Total assets | 20,947 | 19,481 | 18,896 | 18,557 | 17,794 | 18 | 20,947 | 17,794 | 18 | |||||||||||||||||||||||||||
| Deposits | 18,241 | 16,865 | 16,328 | 15,993 | 15,232 | 20 | 18,241 | 15,232 | 20 | |||||||||||||||||||||||||||
| Shareholders’ equity | 2,222 | 2,122 | 2,086 | 2,031 | 2,008 | 11 | 2,222 | 2,008 | 11 | |||||||||||||||||||||||||||
| Common shares outstanding (thousands) | 89,350 | 86,559 | 86,665 | 86,777 | 86,675 | 3 | 89,350 | 86,675 | 3 | |||||||||||||||||||||||||||
(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.
4
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation Selected Financial Information
(in thousands, except per share data)
| 2021 | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2021 | 2020 | ||||||||||||||||||||||
| Expense reconciliation | ||||||||||||||||||||||||||||
| Expenses (GAAP) | $ | 109,156 | $ | 96,749 | $ | 95,540 | $ | 95,194 | $ | 106,490 | $ | 396,639 | $ | 367,989 | ||||||||||||||
| Merger-related and other charges | (9,912 | ) | (1,437 | ) | (1,078 | ) | (1,543 | ) | (2,452 | ) | (13,970 | ) | (7,018 | ) | ||||||||||||||
| Expenses - operating | $ | 99,244 | $ | 95,312 | $ | 94,462 | $ | 93,651 | $ | 104,038 | $ | 382,669 | $ | 360,971 | ||||||||||||||
| Net income to operating income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 52,019 | $ | 73,816 | $ | 70,260 | $ | 73,706 | $ | 59,502 | $ | 269,801 | $ | 164,089 | ||||||||||||||
| Merger-related and other charges | 9,912 | 1,437 | 1,078 | 1,543 | 2,452 | 13,970 | 7,018 | |||||||||||||||||||||
| Income tax benefit of merger-related and other charges | (2,265 | ) | (328 | ) | (246 | ) | (335 | ) | (552 | ) | (3,174 | ) | (1,340 | ) | ||||||||||||||
| Net income - operating | $ | 59,666 | $ | 74,925 | $ | 71,092 | $ | 74,914 | $ | 61,402 | $ | 280,597 | $ | 169,767 | ||||||||||||||
| Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 52,019 | $ | 73,816 | $ | 70,260 | $ | 73,706 | $ | 59,502 | $ | 269,801 | $ | 164,089 | ||||||||||||||
| Income tax expense | 14,204 | 21,603 | 22,005 | 20,150 | 17,871 | 77,962 | 45,356 | |||||||||||||||||||||
| (Release of) provision for credit losses | (647 | ) | (11,034 | ) | (13,588 | ) | (12,281 | ) | 2,907 | (37,550 | ) | 80,434 | ||||||||||||||||
| Pre-tax pre-provision income | $ | 65,576 | $ | 84,385 | $ | 78,677 | $ | 81,575 | $ | 80,280 | $ | 310,213 | $ | 289,879 | ||||||||||||||
| Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | 0.55 | $ | 0.82 | $ | 0.78 | $ | 0.82 | $ | 0.66 | $ | 2.97 | $ | 1.91 | ||||||||||||||
| Merger-related and other charges | 0.09 | 0.01 | 0.01 | 0.01 | 0.02 | 0.12 | 0.07 | |||||||||||||||||||||
| Diluted income per common share - operating | $ | 0.64 | $ | 0.83 | $ | 0.79 | $ | 0.83 | $ | 0.68 | $ | 3.09 | $ | 1.98 | ||||||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 23.63 | $ | 23.25 | $ | 22.81 | $ | 22.15 | $ | 21.90 | $ | 23.63 | $ | 21.90 | ||||||||||||||
| Effect of goodwill and other intangibles | (5.21 | ) | (4.57 | ) | (4.32 | ) | (4.32 | ) | (4.34 | ) | (5.21 | ) | (4.34 | ) | ||||||||||||||
| Tangible book value per common share | $ | 18.42 | $ | 18.68 | $ | 18.49 | $ | 17.83 | $ | 17.56 | $ | 18.42 | $ | 17.56 | ||||||||||||||
| Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
| Return on common equity (GAAP) | 9.32 | % | 14.26 | % | 14.08 | % | 15.37 | % | 12.36 | % | 13.14 | % | 9.25 | % | ||||||||||||||
| Merger-related and other charges | 1.42 | 0.22 | 0.17 | 0.26 | 0.41 | 0.54 | 0.33 | |||||||||||||||||||||
| Return on common equity - operating | 10.74 | 14.48 | 14.25 | 15.63 | 12.77 | 13.68 | 9.58 | |||||||||||||||||||||
| Effect of goodwill and other intangibles | 3.19 | 3.75 | 3.56 | 4.05 | 3.46 | 3.65 | 2.66 | |||||||||||||||||||||
| Return on tangible common equity - operating | 13.93 | % | 18.23 | % | 17.81 | % | 19.68 | % | 16.23 | % | 17.33 | % | 12.24 | % | ||||||||||||||
| Return on assets reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 0.96 | % | 1.48 | % | 1.46 | % | 1.62 | % | 1.30 | % | 1.37 | % | 1.04 | % | ||||||||||||||
| Merger-related and other charges | 0.14 | 0.02 | 0.02 | 0.03 | 0.04 | 0.05 | 0.03 | |||||||||||||||||||||
| Return on assets - operating | 1.10 | % | 1.50 | % | 1.48 | % | 1.65 | % | 1.34 | % | 1.42 | % | 1.07 | % | ||||||||||||||
| Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 0.96 | % | 1.48 | % | 1.46 | % | 1.62 | % | 1.30 | % | 1.37 | % | 1.04 | % | ||||||||||||||
| Income tax expense | 0.26 | 0.45 | 0.47 | 0.46 | 0.40 | 0.40 | 0.29 | |||||||||||||||||||||
| (Release of) provision for credit losses | (0.01 | ) | (0.23 | ) | (0.29 | ) | (0.28 | ) | 0.07 | (0.19 | ) | 0.52 | ||||||||||||||||
| Return on assets - pre-tax pre-provision | 1.21 | 1.70 | 1.64 | 1.80 | 1.77 | 1.58 | 1.85 | |||||||||||||||||||||
| Merger-related and other charges | 0.19 | 0.03 | 0.03 | 0.03 | 0.05 | 0.07 | 0.05 | |||||||||||||||||||||
| Return on assets - pre-tax pre-provision, excluding merger-related and other charges | 1.40 | % | 1.73 | % | 1.67 | % | 1.83 | % | 1.82 | % | 1.65 | % | 1.90 | % | ||||||||||||||
| Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 62.12 | % | 53.11 | % | 54.53 | % | 53.55 | % | 56.73 | % | 55.80 | % | 55.71 | % | ||||||||||||||
| Merger-related and other charges | (5.64 | ) | (0.78 | ) | (0.61 | ) | (0.87 | ) | (1.31 | ) | (1.97 | ) | (1.07 | ) | ||||||||||||||
| Efficiency ratio - operating | 56.48 | % | 52.33 | % | 53.92 | % | 52.68 | % | 55.42 | % | 53.83 | % | 54.64 | % | ||||||||||||||
| Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||||||||
| Equity to total assets (GAAP) | 10.61 | % | 10.89 | % | 11.04 | % | 10.95 | % | 11.29 | % | 10.61 | % | 11.29 | % | ||||||||||||||
| Effect of goodwill and other intangibles | (2.06 | ) | (1.87 | ) | (1.82 | ) | (1.86 | ) | (1.94 | ) | (2.06 | ) | (1.94 | ) | ||||||||||||||
| Effect of preferred equity | (0.46 | ) | (0.49 | ) | (0.51 | ) | (0.52 | ) | (0.54 | ) | (0.46 | ) | (0.54 | ) | ||||||||||||||
| Tangible common equity to tangible assets | 8.09 | % | 8.53 | % | 8.71 | % | 8.57 | % | 8.81 | % | 8.09 | % | 8.81 | % | ||||||||||||||
| Allowance for credit losses - total to loans reconciliation | ||||||||||||||||||||||||||||
| Allowance for credit losses - total to loans (GAAP) | 0.97 | % | 0.99 | % | 1.08 | % | 1.16 | % | 1.30 | % | 0.97 | % | 1.30 | % | ||||||||||||||
| Effect of PPP loans | — | 0.01 | 0.04 | 0.10 | 0.08 | — | 0.08 | |||||||||||||||||||||
| Allowance for credit losses - total to loans, excluding PPP loans | 0.97 | % | 1.00 | % | 1.12 | % | 1.26 | % | 1.38 | % | 0.97 | % | 1.38 | % | ||||||||||||||
5
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
(in millions)
| 2021 | 2020 | Linked | Year over | |||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Quarter Change | Year Change | ||||||||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||||||||
| Owner occupied commercial RE | $ | 2,322 | $ | 2,149 | $ | 2,149 | $ | 2,107 | $ | 2,090 | $ | 173 | $ | 232 | ||||||||||||||
| Income producing commercial RE | 2,601 | 2,542 | 2,550 | 2,599 | 2,541 | 59 | 60 | |||||||||||||||||||||
| Commercial & industrial | 1,822 | 1,729 | 1,762 | 1,760 | 1,853 | 93 | (31 | ) | ||||||||||||||||||||
| Paycheck protection program | 88 | 150 | 472 | 883 | 646 | (62 | ) | (558 | ) | |||||||||||||||||||
| Commercial construction | 1,015 | 947 | 927 | 960 | 967 | 68 | 48 | |||||||||||||||||||||
| Equipment financing | 1,083 | 1,017 | 969 | 913 | 864 | 66 | 219 | |||||||||||||||||||||
| Total commercial | 8,931 | 8,534 | 8,829 | 9,222 | 8,961 | 397 | (30 | ) | ||||||||||||||||||||
| Residential mortgage | 1,638 | 1,533 | 1,473 | 1,362 | 1,285 | 105 | 353 | |||||||||||||||||||||
| Home equity lines of credit | 694 | 661 | 661 | 679 | 697 | 33 | (3 | ) | ||||||||||||||||||||
| Residential construction | 359 | 321 | 289 | 272 | 281 | 38 | 78 | |||||||||||||||||||||
| Consumer | 138 | 142 | 139 | 144 | 147 | (4 | ) | (9 | ) | |||||||||||||||||||
| Total loans | $ | 11,760 | $ | 11,191 | $ | 11,391 | $ | 11,679 | $ | 11,371 | $ | 569 | $ | 389 | ||||||||||||||
| LOANS BY MARKET (1) | ||||||||||||||||||||||||||||
| North Georgia | $ | 944 | $ | 961 | $ | 962 | $ | 982 | $ | 955 | $ | (17 | ) | $ | (11 | ) | ||||||||||||
| Atlanta | 2,030 | 1,930 | 1,938 | 1,953 | 1,889 | 100 | 141 | |||||||||||||||||||||
| North Carolina | 1,895 | 1,427 | 1,374 | 1,326 | 1,281 | 468 | 614 | |||||||||||||||||||||
| Coastal Georgia | 588 | 621 | 605 | 597 | 617 | (33 | ) | (29 | ) | |||||||||||||||||||
| Gainesville | 216 | 220 | 224 | 222 | 224 | (4 | ) | (8 | ) | |||||||||||||||||||
| East Tennessee | 373 | 383 | 394 | 398 | 415 | (10 | ) | (42 | ) | |||||||||||||||||||
| South Carolina | 2,235 | 2,145 | 2,107 | 1,997 | 1,947 | 90 | 288 | |||||||||||||||||||||
| Florida | 1,148 | 1,113 | 1,141 | 1,160 | 1,435 | 35 | (287 | ) | ||||||||||||||||||||
| Commercial Banking Solutions | 2,331 | 2,391 | 2,646 | 3,044 | 2,608 | (60 | ) | (277 | ) | |||||||||||||||||||
| Total loans | $ | 11,760 | $ | 11,191 | $ | 11,391 | $ | 11,679 | $ | 11,371 | $ | 569 | $ | 389 | ||||||||||||||
6
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||
| Owner occupied commercial RE | $ | 2,322 | $ | 2,090 | $ | 1,720 | $ | 1,648 | $ | 1,924 | ||||||||||
| Income producing commercial RE | 2,601 | 2,541 | 2,008 | 1,812 | 1,595 | |||||||||||||||
| Commercial & industrial | 1,822 | 1,853 | 1,221 | 1,278 | 1,131 | |||||||||||||||
| Paycheck protection program | 88 | 646 | — | — | — | |||||||||||||||
| Commercial construction | 1,015 | 967 | 976 | 796 | 712 | |||||||||||||||
| Equipment financing | 1,083 | 864 | 745 | 565 | — | |||||||||||||||
| Total commercial | 8,931 | 8,961 | 6,670 | 6,099 | 5,362 | |||||||||||||||
| Residential mortgage | 1,638 | 1,285 | 1,118 | 1,049 | 974 | |||||||||||||||
| Home equity lines of credit | 694 | 697 | 661 | 694 | 731 | |||||||||||||||
| Residential construction | 359 | 281 | 236 | 211 | 183 | |||||||||||||||
| Consumer | 138 | 147 | 128 | 330 | 486 | |||||||||||||||
| Total loans | $ | 11,760 | $ | 11,371 | $ | 8,813 | $ | 8,383 | $ | 7,736 | ||||||||||
| LOANS BY MARKET | ||||||||||||||||||||
| North Georgia | $ | 944 | $ | 955 | $ | 967 | $ | 981 | $ | 1,019 | ||||||||||
| Atlanta | 2,030 | 1,889 | 1,762 | 1,507 | 1,510 | |||||||||||||||
| North Carolina | 1,895 | 1,281 | 1,156 | 1,072 | 1,049 | |||||||||||||||
| Coastal Georgia | 588 | 617 | 631 | 588 | 630 | |||||||||||||||
| Gainesville | 216 | 224 | 246 | 247 | 248 | |||||||||||||||
| East Tennessee | 373 | 415 | 421 | 477 | 475 | |||||||||||||||
| South Carolina | 2,235 | 1,947 | 1,708 | 1,645 | 1,486 | |||||||||||||||
| Florida | 1,148 | 1,435 | — | — | — | |||||||||||||||
| Commercial Banking Solutions | 2,331 | 2,608 | 1,922 | 1,658 | 961 | |||||||||||||||
| Indirect auto | — | — | — | 208 | 358 | |||||||||||||||
| Total loans | $ | 11,760 | $ | 11,371 | $ | 8,813 | $ | 8,383 | $ | 7,736 | ||||||||||
7
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
| 2021 | ||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| NONACCRUAL LOANS | ||||||||||||
| Owner occupied RE | $ | 2,714 | $ | 4,945 | $ | 6,128 | ||||||
| Income producing RE | 7,588 | 13,462 | 13,100 | |||||||||
| Commercial & industrial | 5,429 | 8,507 | 8,563 | |||||||||
| Commercial construction | 343 | 1,202 | 1,229 | |||||||||
| Equipment financing | 1,741 | 1,845 | 1,771 | |||||||||
| Total commercial | 17,815 | 29,961 | 30,791 | |||||||||
| Residential mortgage | 13,313 | 13,222 | 13,485 | |||||||||
| Home equity lines of credit | 1,212 | 1,364 | 1,433 | |||||||||
| Residential construction | 420 | 260 | 307 | |||||||||
| Consumer | 52 | 116 | 107 | |||||||||
| Total | $ | 32,812 | $ | 44,923 | $ | 46,123 | ||||||
| 2021 | ||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | ||||||||||||||||||||||
| (in thousands) | Net Charge- Offs | Net Charge- Offs to Average Loans (1) | Net Charge- Offs | Net Charge- Offs to Average Loans (1) | Net Charge- Offs | Net Charge- Offs to Average Loans (1) | ||||||||||||||||||
| NET CHARGE-OFFS BY CATEGORY | ||||||||||||||||||||||||
| Owner occupied RE | $ | (255 | ) | (0.04 | )% | $ | (93 | ) | (0.02 | )% | $ | (103 | ) | (0.02 | )% | |||||||||
| Income producing RE | (98 | ) | (0.01 | ) | 45 | 0.01 | (213 | ) | (0.03 | ) | ||||||||||||||
| Commercial & industrial | 339 | 0.07 | (91 | ) | (0.02 | ) | 60 | 0.01 | ||||||||||||||||
| Commercial construction | (354 | ) | (0.14 | ) | (123 | ) | (0.05 | ) | (293 | ) | (0.12 | ) | ||||||||||||
| Equipment financing | 781 | 0.29 | 512 | 0.21 | 301 | 0.13 | ||||||||||||||||||
| Total commercial | 413 | 0.02 | 250 | 0.01 | (248 | ) | (0.01 | ) | ||||||||||||||||
| Residential mortgage | (169 | ) | (0.04 | ) | 51 | 0.01 | (194 | ) | (0.05 | ) | ||||||||||||||
| Home equity lines of credit | (118 | ) | (0.07 | ) | (102 | ) | (0.06 | ) | (112 | ) | (0.07 | ) | ||||||||||||
| Residential construction | (17 | ) | (0.02 | ) | (37 | ) | (0.05 | ) | (33 | ) | (0.05 | ) | ||||||||||||
| Consumer | 139 | 0.39 | 389 | 1.11 | 131 | 0.37 | ||||||||||||||||||
| Total | $ | 248 | 0.01 | $ | 551 | 0.02 | $ | (456 | ) | (0.02 | ) | |||||||||||||
| (1) | Annualized. |
8
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
| December 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 144,244 | $ | 148,896 | ||||
| Interest-bearing deposits in banks | 2,147,266 | 1,459,723 | ||||||
| Federal funds and other short-term investments | 27,000 | — | ||||||
| Cash and cash equivalents | 2,318,510 | 1,608,619 | ||||||
| Debt securities available-for-sale | 4,496,824 | 3,224,721 | ||||||
| Debt securities held-to-maturity (fair value $1,148,804 and $437,193, respectively) | 1,156,098 | 420,361 | ||||||
| Loans held for sale at fair value | 44,109 | 105,433 | ||||||
| Loans and leases held for investment | 11,760,346 | 11,370,815 | ||||||
| Less allowance for credit losses - loans and leases | (102,532 | ) | (137,010 | ) | ||||
| Loans and leases, net | 11,657,814 | 11,233,805 | ||||||
| Premises and equipment, net | 245,296 | 218,489 | ||||||
| Bank owned life insurance | 217,713 | 201,969 | ||||||
| Accrued interest receivable | 42,999 | 47,672 | ||||||
| Net deferred tax asset | 41,322 | 38,411 | ||||||
| Derivative financial instruments | 42,480 | 86,666 | ||||||
| Goodwill and other intangible assets, net | 472,407 | 381,823 | ||||||
| Other assets | 211,199 | 226,405 | ||||||
| Total assets | $ | 20,946,771 | $ | 17,794,374 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 6,956,981 | $ | 5,390,291 | ||||
| NOW and interest-bearing demand | 4,252,209 | 3,346,490 | ||||||
| Money market | 4,183,354 | 3,550,335 | ||||||
| Savings | 1,215,779 | 950,854 | ||||||
| Time | 1,442,498 | 1,704,290 | ||||||
| Brokered | 190,358 | 290,098 | ||||||
| Total deposits | 18,241,179 | 15,232,358 | ||||||
| Long-term debt | 247,360 | 326,956 | ||||||
| Derivative financial instruments | 25,145 | 29,003 | ||||||
| Accrued expenses and other liabilities | 210,842 | 198,527 | ||||||
| Total liabilities | 18,724,526 | 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; 200,000,000 and 150,000,000 shares authorized, respectively; 89,349,826 and 86,675,279 shares issued and outstanding, respectively | 89,350 | 86,675 | ||||||
| Common stock issuable; 595,705 and 600,834 shares, respectively | 11,288 | 10,855 | ||||||
| Capital surplus | 1,721,007 | 1,638,999 | ||||||
| Retained earnings | 330,654 | 136,869 | ||||||
| Accumulated other comprehensive (loss) income | (26,476 | ) | 37,710 | |||||
| Total shareholders’ equity | 2,222,245 | 2,007,530 | ||||||
| Total liabilities and shareholders’ equity | $ | 20,946,771 | $ | 17,794,374 | ||||
9
UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest revenue: | ||||||||||||||||
| Loans, including fees | $ | 123,473 | $ | 141,351 | $ | 505,734 | $ | 494,212 | ||||||||
| Investment securities, including tax exempt of $2,293, $2,055, $8,978 and $7,043 | 19,442 | 14,507 | 70,972 | 62,074 | ||||||||||||
| Deposits in banks and short-term investments | 853 | 213 | 2,088 | 1,710 | ||||||||||||
| Total interest revenue | 143,768 | 156,071 | 578,794 | 557,996 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW and interest-bearing demand | 1,310 | 1,495 | 5,468 | 7,735 | ||||||||||||
| Money market | 1,102 | 2,196 | 5,380 | 13,165 | ||||||||||||
| Savings | 60 | 48 | 217 | 169 | ||||||||||||
| Time | 392 | 2,689 | 3,780 | 20,703 | ||||||||||||
| Deposits | 2,864 | 6,428 | 14,845 | 41,772 | ||||||||||||
| Short-term borrowings | — | — | — | 3 | ||||||||||||
| Federal Home Loan Bank advances | 1 | — | 3 | 28 | ||||||||||||
| Long-term debt | 3,348 | 4,248 | 14,912 | 14,434 | ||||||||||||
| Total interest expense | 6,213 | 10,676 | 29,760 | 56,237 | ||||||||||||
| Net interest revenue | 137,555 | 145,395 | 549,034 | 501,759 | ||||||||||||
| Provision for credit losses | (647 | ) | 2,907 | (37,550 | ) | 80,434 | ||||||||||
| Net interest revenue after provision for credit losses | 138,202 | 142,488 | 586,584 | 421,325 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and fees | 8,613 | 8,508 | 33,868 | 32,401 | ||||||||||||
| Mortgage loan gains and related fees | 10,910 | 18,974 | 58,446 | 76,087 | ||||||||||||
| Wealth management fees | 6,117 | 3,221 | 18,998 | 9,240 | ||||||||||||
| Gains from other loan sales, net | 3,761 | 1,531 | 11,267 | 5,420 | ||||||||||||
| Securities gains, net | 42 | 2 | 83 | 748 | ||||||||||||
| Other | 7,734 | 9,139 | 35,156 | 32,213 | ||||||||||||
| Total noninterest income | 37,177 | 41,375 | 157,818 | 156,109 | ||||||||||||
| Total revenue | 175,379 | 183,863 | 744,402 | 577,434 | ||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries and employee benefits | 60,986 | 61,824 | 241,443 | 224,060 | ||||||||||||
| Occupancy | 7,489 | 7,082 | 28,619 | 25,791 | ||||||||||||
| Communications and equipment | 7,850 | 7,687 | 29,829 | 27,149 | ||||||||||||
| FDIC assessments and other regulatory charges | 1,878 | 1,594 | 7,398 | 5,982 | ||||||||||||
| Professional fees | 6,080 | 4,029 | 20,589 | 18,032 | ||||||||||||
| Lending and loan servicing expense | 2,351 | 2,468 | 10,859 | 10,993 | ||||||||||||
| Outside services - electronic banking | 2,670 | 1,997 | 9,481 | 7,513 | ||||||||||||
| Postage, printing and supplies | 1,939 | 1,793 | 7,110 | 6,779 | ||||||||||||
| Advertising and public relations | 1,760 | 9,891 | 5,910 | 15,203 | ||||||||||||
| Amortization of intangibles | 1,103 | 1,042 | 4,045 | 4,168 | ||||||||||||
| Merger-related and other charges | 9,912 | 2,452 | 13,970 | 7,018 | ||||||||||||
| Other | 5,138 | 4,631 | 17,386 | 15,301 | ||||||||||||
| Total noninterest expenses | 109,156 | 106,490 | 396,639 | 367,989 | ||||||||||||
| Net income before income taxes | 66,223 | 77,373 | 347,763 | 209,445 | ||||||||||||
| Income tax expense | 14,204 | 17,871 | 77,962 | 45,356 | ||||||||||||
| Net income | $ | 52,019 | $ | 59,502 | $ | 269,801 | $ | 164,089 | ||||||||
| Preferred stock dividends | 1,718 | 1,719 | 6,875 | 3,533 | ||||||||||||
| Earnings allocated to participating securities | 317 | 532 | 1,657 | 1,287 | ||||||||||||
| Net income available to common shareholders | $ | 49,984 | $ | 57,251 | $ | 261,269 | $ | 159,269 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.56 | $ | 0.66 | $ | 2.97 | $ | 1.91 | ||||||||
| Diluted | 0.55 | 0.66 | 2.97 | 1.91 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 89,916 | 87,258 | 87,940 | 83,184 | ||||||||||||
| Diluted | 90,089 | 87,333 | 88,097 | 83,248 | ||||||||||||
10
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended December 31,
(dollars in thousands, fully taxable equivalent (FTE))
| 2021 | 2020 | |||||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 11,689,412 | $ | 123,250 | 4.18 | % | $ | 11,595,484 | $ | 140,687 | 4.83 | % | ||||||||||||
| Taxable securities (3) | 5,156,563 | 17,149 | 1.33 | 3,039,275 | 12,452 | 1.64 | ||||||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 387,638 | 3,080 | 3.18 | 286,490 | 2,759 | 3.85 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 2,308,241 | 1,322 | 0.23 | 1,472,668 | 1,132 | 0.31 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 19,541,854 | 144,801 | 2.94 | 16,393,917 | 157,030 | 3.81 | ||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (103,167 | ) | (138,313 | ) | ||||||||||||||||||||
| Cash and due from banks | 141,967 | 143,694 | ||||||||||||||||||||||
| Premises and equipment | 245,869 | 218,349 | ||||||||||||||||||||||
| Other assets (3) | 1,036,760 | 1,080,180 | ||||||||||||||||||||||
| Total assets | $ | 20,863,283 | $ | 17,697,827 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 4,080,621 | 1,310 | 0.13 | $ | 3,281,984 | 1,495 | 0.18 | ||||||||||||||||
| Money market | 4,323,851 | 1,102 | 0.10 | 3,698,734 | 2,196 | 0.24 | ||||||||||||||||||
| Savings | 1,187,134 | 60 | 0.02 | 918,623 | 48 | 0.02 | ||||||||||||||||||
| Time | 1,461,231 | 567 | 0.15 | 1,748,099 | 2,711 | 0.62 | ||||||||||||||||||
| Brokered time deposits | 65,556 | (175 | ) | (1.06 | ) | 83,750 | (22 | ) | (0.10 | ) | ||||||||||||||
| Total interest-bearing deposits | 11,118,393 | 2,864 | 0.10 | 9,731,190 | 6,428 | 0.26 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 51 | — | — | 54 | — | — | ||||||||||||||||||
| Federal Home Loan Bank advances | 1,426 | 1 | 0.28 | — | — | — | ||||||||||||||||||
| Long-term debt | 247,251 | 3,348 | 5.37 | 327,236 | 4,248 | 5.16 | ||||||||||||||||||
| Total borrowed funds | 248,728 | 3,349 | 5.34 | 327,290 | 4,248 | 5.16 | ||||||||||||||||||
| Total interest-bearing liabilities | 11,367,121 | 6,213 | 0.22 | 10,058,480 | 10,676 | 0.42 | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 6,918,279 | 5,325,858 | ||||||||||||||||||||||
| Other liabilities | 354,665 | 319,158 | ||||||||||||||||||||||
| Total liabilities | 18,640,065 | 15,703,496 | ||||||||||||||||||||||
| Shareholders’ equity | 2,223,218 | 1,994,331 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 20,863,283 | $ | 17,697,827 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 138,588 | $ | 146,354 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 2.72 | % | 3.39 | % | ||||||||||||||||||||
| Net interest margin (FTE) (4) | 2.81 | % | 3.55 | % | ||||||||||||||||||||
| (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 losses of $1.64 million in 2021 and pretax unrealized gains of $72.6 million in 2020 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. |
11
UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Twelve Months Ended December 31,
(dollars in thousands, fully taxable equivalent (FTE))
| 2021 | 2020 | |||||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 11,485,876 | $ | 504,015 | 4.39 | % | $ | 10,466,653 | $ | 492,223 | 4.70 | % | ||||||||||||
| Taxable securities (3) | 4,446,712 | 61,994 | 1.39 | 2,532,750 | 55,031 | 2.17 | ||||||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 382,915 | 12,059 | 3.15 | 219,668 | 9,458 | 4.31 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 1,680,151 | 4,784 | 0.28 | 1,007,059 | 4,753 | 0.47 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 17,995,654 | 582,852 | 3.24 | 14,226,130 | 561,465 | 3.95 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (121,586 | ) | (106,812 | ) | ||||||||||||||||||||
| Cash and due from banks | 139,728 | 136,702 | ||||||||||||||||||||||
| Premises and equipment | 230,276 | 217,751 | ||||||||||||||||||||||
| Other assets (3) | 1,013,956 | 993,584 | ||||||||||||||||||||||
| Total assets | $ | 19,258,028 | $ | 15,467,355 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 3,610,601 | 5,468 | 0.15 | $ | 2,759,383 | 7,735 | 0.28 | ||||||||||||||||
| Money market | 3,972,358 | 5,380 | 0.14 | 3,023,928 | 13,165 | 0.44 | ||||||||||||||||||
| Savings | 1,095,071 | 217 | 0.02 | 821,344 | 169 | 0.02 | ||||||||||||||||||
| Time | 1,529,072 | 3,663 | 0.24 | 1,832,319 | 20,146 | 1.10 | ||||||||||||||||||
| Brokered time deposits | 67,230 | 117 | 0.17 | 97,788 | 557 | 0.57 | ||||||||||||||||||
| Total interest-bearing deposits | 10,274,332 | 14,845 | 0.14 | 8,534,762 | 41,772 | 0.49 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 44 | — | — | 1,220 | 3 | 0.25 | ||||||||||||||||||
| Federal Home Loan Bank advances | 1,195 | 3 | 0.25 | 749 | 28 | 3.74 | ||||||||||||||||||
| Long-term debt | 276,492 | 14,912 | 5.39 | 274,069 | 14,434 | 5.27 | ||||||||||||||||||
| Total borrowed funds | 277,731 | 14,915 | 5.37 | 276,038 | 14,465 | 5.24 | ||||||||||||||||||
| Total interest-bearing liabilities | 10,552,063 | 29,760 | 0.28 | 8,810,800 | 56,237 | 0.64 | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 6,276,094 | 4,600,152 | ||||||||||||||||||||||
| Other liabilities | 322,566 | 235,120 | ||||||||||||||||||||||
| Total liabilities | 17,150,723 | 13,646,072 | ||||||||||||||||||||||
| Shareholders’ equity | 2,107,305 | 1,821,283 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 19,258,028 | $ | 15,467,355 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 553,092 | $ | 505,228 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 2.96 | % | 3.31 | % | ||||||||||||||||||||
| Net interest margin (FTE) (4) | 3.07 | % | 3.55 | % | ||||||||||||||||||||
| (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 $28.7 million in 2021 and $67.3 million in 2020 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. |
12
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQGS: UCBI) provides a full range of banking, wealth management and mortgage services for relationship-oriented consumers and business owners. The company, known as “The Bank That SERVICE Built,” has been recognized nationally for delivering award-winning service. At December 31, 2021, United had $20.9 billion in assets and 171 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. Through its January 1, 2022 acquisition of Reliant Bancorp and its wholly-owned banking subsidiary, Reliant Bank, United added $3 billion in assets and 25 banking offices in high growth markets in Tennessee. In 2021, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking seven out of the last eight years United earned the coveted award. United was also named one of the "Best Banks to Work For" by American Banker in 2021 for the fifth consecutive year based on employee satisfaction. 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.
Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, and include statements related to the accretive value of each of the Aquesta and Reliant acquisitions to United’s earnings. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.
13
Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the Aquesta and Reliant acquisitions may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of the Aquesta and Reliant acquisitions, (3) the possibility that the costs, fees, expenses and charges related to the acquisition of Reliant may be greater than anticipated, (4) reputational risk and the reaction of the companies’ customers, suppliers, employees or other business partners to the acquisitions of Aquesta and Reliant, (5) the risks relating to the integration of Reliant’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risk of potential litigation or regulatory action related to the acquisitions of Aquesta and Reliant, (7) the risks associated with United’s pursuit of future acquisitions, (8) the risk of expansion into new geographic or product markets, (9) the dilution caused by United’s issuance of additional shares of its common stock in the acquisitions of Aquesta and Reliant, and (10) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2020, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).
Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United or Reliant.
United qualifies all forward-looking statements by these cautionary statements.
# # #
14
Exhibit 99.2
4Q21 Investor Presentation January 18, 2022
Disclosures CAUTIONARY STATEMENT This communication contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . In general, forward - looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, and include statements related to the expected returns and other benefits of the merger with Reliant Bancorp, Inc . (“Reliant”) to shareholders, expected improvement in operating efficiency resulting from the merger, estimated expense reductions resulting from the transaction and the timing of achievement of such reductions, the impact on and timing of the recovery of the impact on tangible book value, and the effect of the merger on United’s capital ratios . Forward - looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance . Actual results may prove to be materially different from the results expressed or implied by the forward - looking statements . Forward - looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements . Factors that could cause or contribute to such differences include, but are not limited to ( 1 ) the risk that the cost savings from the merger may not be realized or take longer than anticipated to be realized, ( 2 ) disruption from the merger with customer, supplier, employee or other business partner relationships, ( 3 ) the possibility that the costs, fees, expenses and charges related to the merger may be greater than anticipated, ( 4 ) reputational risk and the reaction of the companies’ customers, suppliers, employees or other business partners to the merger, ( 5 ) the risks relating to the integration of Reliant’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, ( 6 ) the risk of potential litigation or regulatory action related to mergers, ( 7 ) the risks associated with United’s pursuit of future acquisitions, ( 8 ) the risk of expansion into new geographic or product markets, ( 9 ) the dilution caused by United’s issuance of additional shares of its common stock in mergers, and ( 10 ) general competitive, economic, political and market conditions . Further information regarding additional factors which could affect the forward - looking statements can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward - Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10 - K for the year ended December 31 , 2020 , and other documents subsequently filed by United with the SEC . Many of these factors are beyond United Community Banks, Inc . ’s (“United”) and Reliant’s ability to control or predict . If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward - looking statements . Accordingly, shareholders and investors should not place undue reliance on any such forward - looking statements . Any forward - looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as required by law . New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United or Reliant . United qualifies all forward - looking statements by these cautionary statements . 2
Disclosures 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 . 3
#2 Highest Net Promoter Score among all banks nationwide – J.D. Power 2020 TOP WORKPLACES in S.C. & Atlanta – Greenville Business Magazine & Atlanta Journal Constitution 196 BANKING OFFICES ACROSS THE SOUTHEAST #1 IN CUSTOMER SATISFACTION in 2021 with Retail Banking in the Southeast – J.D. Power United Community Banks, Inc. $20.9 BILLION IN TOTAL ASSETS $4.7 BILLION IN AUA $18.2 BILLION IN TOTAL DEPOSITS BEST BANKS TO WORK FOR in 2021 for the fifth consecutive year – American Banker $0.20 QUARTERLY DIVIDEND – UP 11% YOY 4 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 187 branches, 9 LPOs, and 6 mortgage loan offices across six Southeast states x Top 10 market share in GA, SC and TN x Proven ability to integrate – 12 transactions completed over the past 10 years x Closed the Reliant acquisition January 1, 2022 adding $3 billion in total assets with locations primarily in the Nashville area, as well as Clarksville and Chattanooga 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 in 2021 f or the eighth consecutive year - Forbes x Offered nationwide x SBA business has both in - footprint and national business (4 specific verticals) x Navitas subsidiary is a technology enabled small - ticket, essential - use commercial equipment finance provider Banking Offices Note: See glossary located at the end of this presentation for reference on certain acronyms
$21.90 $23.25 $23.63 $17.56 $18.68 $18.42 4Q20 3Q21 4Q21 Book Value Per Share GAAP Tangible $0.55 Diluted earnings per share - GAAP $0.64 Diluted earnings per share - operating 0.96% Return on average assets - GAAP 1.10% Return on average assets - operating 1.40% PTPP return on average assets - operating 0.06% Cost of deposits 38% DDA / Total Deposits 9.3% Return on common equity - GAAP 13.9% Return on tangible common equity - operating 64% Loan to Deposit ratio Other 4Q notable items: $3.9 mm of PPP fee income ($0.03 EPS) $3.3 mm initial provision to establish reserve for Aquesta loans ($0.03 EPS) 4Q21 Highlights (1) See non - GAAP reconciliation table slides in the Appendix for a reconciliation of operating performance measures to GAAP performance $0.66 $0.82 $0.55 $0.68 $0.83 $0.64 4Q20 3Q21 4Q21 Diluted Earnings Per Share GAAP Operating (1) 1.30% 1.48% 0.96% 1.34% 1.50% 1.10% 4Q20 3Q21 4Q21 Return on Average Assets GAAP Operating 1.77% 1.70% 1.21% 1.82% 1.73% 1.40% 4Q20 3Q21 4Q21 PTPP Return on Average Assets PTPP Operating PTPP (1) (1) (1) 5 (1) (1) (1) 6.9% Annualized 4Q EOP core loan growth (excluding PPP & Aquesta loans) 17.0% Annualized 4Q EOP total deposit growth (excluding Aquesta ) (1)
$652 $342 $0 $100 $200 $300 $400 $500 $600 $700 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Shareholder Return $ UCBI Outperformance 0.91% 0.98% 1.06% 1.09% 1.40% 1.51% 1.07% 1.42% 2014 2015 2016 2017 2018 2019 2020 2021 ROA - Operating UCBI KRX Long - Term Financial Performance & Shareholder Return 6 (1) See non - GAAP reconciliation table slides in the Appendix for a reconciliation of operating performance measures to GAAP performa nce (1) 9.32% 10.24% 11.86% 12.02% 15.69% 15.81% 12.24% 17.33% 2014 2015 2016 2017 2018 2019 2020 2021 ROTCE - Operating UCBI KRX (1) Performance for the period ended January 14, 2022 United Community Banks, Inc. KBW Nasdaq Regional Bank Index (KRX) 1 - YEAR 25% 32% 3 - YEAR 78% 60% 5 - YEAR 53% 45% 10 - YEAR 542% 239%
67.9 72.5 11.9% 12.1% 4.9% 3.2% '27 Proj. '22 - '27 Proj. Median Fastest Growing Pop. Growth '22 Household Southeast MSAs (1) % Population Income 1. Nashville, TN 6.10 2,015,914 $89,164 2. Orlando, FL 5.64 2,694,186 $78,749 3. Atlanta, GA 5.38 6,206,533 $88,792 4. Raleigh, NC 5.14 1,426,329 $99,125 5. Jacksonville, FL 4.82 1,613,916 $82,819 6. Tampa, FL 4.79 3,277,020 $73,066 7. Charlotte, NC 4.47 2,697,040 $82,505 8. Richmond, VA 4.46 1,328,751 $83,105 9. Birmingham, AL 4.25 1,120,659 $72,525 10. Washington, D.C. 4.05 6,441,102 $125,882 (1) Includes MSAs with a population of greater than 1,000,000 (2) Data by MSA shown on a weighted average basis by deposits United Operates in the Top Growth Markets United MSA Presence United Now Operates in the Top Growth Markets UCBI Focused on High - Growth MSAs in Southeast 7 Added through acquisitions in 2020 - 2022 Projected Population Growth (2) 2022 – 2027 (%) Projected Household Income Growth (2) 2022 – 2027 (%) Median Household Income (2) ($ in thousands) National Avg. National Avg. National Avg.
44% 9% 22% 1% 14% 6% 3% 1% Residential Mortgage Diversified Loan Portfolio 4 Q21 Total Loans $11.8 billion Note: C&I includes commercial and industrial loans, owner - occupied CRE loans and Navitas (equipment finance) loans Quarter Highlights x Loans, excluding PPP and Aquesta , increased $190 million, or 6.9% annualized x Sold $19.9 million of Navitas loans x Sold $33.8 million of SBA loans Granular Loan Portfolio x Construction & CRE ratio as a percentage of total RBC = 69%/197% x Top 25 relationships total $617 million, or 5.2% of total loans x SNCs outstanding of $230 million, or 2.0% of total loans x Navitas 9% of total loans x Project lending limit of $25 million x Relationship lending limit of $40 million 8 C&I Commercial Construction CRE Other Consumer PPP Home Equity Residential Construction
38% 23% 24% 7% 8% DDA MMDA Savings Time NOW Valuable Deposit Mix 9 Note: Core transaction accounts include demand deposits, interest - bearing demand, money market and savings accounts, excluding p ublic funds deposits x Total deposits were up $1.4 billion from 3Q21 and up $3.0 billion YOY • Excluding Aquesta , 4Q21 total deposits grew $718 million, or 17.0% annualized • Excluding Aquesta , total deposits were up $2.4 billion, or 15.4% YOY x Core transaction deposits were up $948 million from 3Q21 and up $2.8 billion YOY • Excluding Aquesta , 4Q21 core transactions deposits grew $333 million, or 10.0% annualized • Excluding Aquesta , core transaction deposits were up $2.2 billion, or 19.2% YOY x Cost of deposits was down 1 bp to 0.06% in 4Q21, driven by continued noninterest bearing deposit growth, CD maturities and deposit rate cuts 4Q21 Total Deposits 18.2 billion Cost of Deposits Trend 0.61% 0.56% 0.38% 0.25% 0.17% 0.14% 0.09% 0.07% 0.06% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
$10.8 $15.2 $10.8 $16.0 $10.9 $16.3 $11.0 $16.9 $11.8 $18.2 $0.6 $0.9 $0.5 $0.2 $0.1 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Loans Deposits Loans Deposits Loans Deposits Loans Deposits Loans Deposits 4Q20 1Q21 2Q21 3Q21 4Q21 Loans excluding PPP PPP Loans 75% 73% 70% 66% 64% 47% 57% 67% 77% 87% 97% Liquidity Build Presents Opportunity Loans and Deposits 10 $ in billions Note: Loan growth excludes PPP loans and adjusts for the Aquesta acquisition that closed October 1, 2021. Deposit growth also adjusts for the Aquesta acquisition. Loans / Deposits % 4Q20 1Q21 2Q21 3Q21 4Q21 Annualized Loan Growth % 8% 3% 5% 4% 7% Loan Yield % 4.83% 4.44% 4.40% 4.54% 4.18% Annualized Deposit Growth % 17% 20% 8% 13% 17% Deposit Cost % 0.17% 0.14% 0.09% 0.07% 0.06%
Capital Ratios 11 x Quarterly dividend of $0.20 per share, an increase of 11% YOY x There were no share repurchases during 4Q21 x Put capital to work by including $40.5 million of cash (30% of total consideration) in the Aquesta acquisition that closed October 1, 2021 x Regulatory capital ratios expected to remain at peer levels or better pro forma for completion of the Reliant transaction *4Q21 regulatory capital ratios are preliminary Common Equity Tier 1 Capital 12.3 % 12.3 % 12.6 % 12.6 % 12.0 % + 0.6 % 12.4 % Tier 1 Risk-Based Capital 13.1 13.1 13.3 13.4 12.3 + 1.1 13.1 Total Risk-Based Capital 15.2 14.9 15.1 14.9 14.5 + 0.4 14.6 Leverage 9.3 9.4 9.3 9.2 9.0 + 0.2 8.8 Tangible Common Equity to Tangible Assets 8.8 8.6 8.7 8.5 8.6 - 0.1 8.1 Tangible Book Value per share $17.56 $17.83 $18.49 $18.68 $18.42 4Q21* vs. KRX Holding Company 4Q20 2Q21 3Q21 3Q21 KRX Peer Median UCBI 1Q21
$145.4 $141.0 $137.6 4Q20 3Q21 4Q21 Net Interest Revenue / Margin (1) $ in millions x Net Interest Income grew approximately 8% annualized in the 4Q21, excluding PPP fees and Aquesta x Net interest margin decreased 31 bps from 3Q21, primarily driven by less PPP fees and continued surplus liquidity; core net interest margin was down 5 bps in 4Q21 to 2.66% x Loan accretion totaled $3.7 million and contributed 7 bps to the margin, down 5 bps from 3Q21 x PPP fees contributed 8 bps in 4Q21 compared to 28 bps in 3Q21 x Variable rate loans currently priced at their floors increased $29.7 million from 3Q21 to $1.3 billion 3.55% 3.12% 2.81% 2.92% 2.71% 2.66% Net Interest Revenue ($ in millions) Net Interest Margin Core Net Interest Margin (1) Net interest margin is calculated on a fully - taxable equivalent basis (2) Core net interest margin excludes PPP fees and loan accretion (1) 12 4Q21 NIM Compression (2) 2.81% 3.12% ( 0.06% ) 0.01% ( 0.05% ) ( 0.21% ) 3Q NIM Surplus Liquidity Interest Rates / Mix / Other Loan Accretion PPP Fees 4Q NIM (%)
Noninterest Income $ in millions $8.5 $7.6 $8.4 $9.4 $8.6 $9.2 $10.0 $8.4 $9.0 $7.8 $3.2 $3.5 $3.8 $5.5 $6.1 $19.0 $22.6 $11.1 $13.8 $10.9 $1.5 $1.0 $4.1 $2.4 $3.8 4Q20 1Q21 2Q21 3Q21 4Q21 Service Charges Other Brokerage / Wealth Mgmt Mortgage Loan sale gains $44.7 Linked Quarter x Fees down $2.9 million • Mortgage fees down $2.9 million from 3Q21 primarily due to seasonal declines in volume; partially offset by a $0.8 million MSR write - up • Rate locks were down with $695 million compared to $731 million in 3Q21 • Mortgage closings of $522 million compared to $568 million in 3Q21 • 4Q21 mortgage production purchase/refi mix was 65%/35% • Gain on sale of SBA loans was $3.0 million on $33.8 million of loan sales • Gain on sale of equipment finance loans was $753 thousand on $19.9 million of loan sales Year - over - Year x Fees down $4.2 million • Mortgage rate locks down 12% compared to last year ($695 million in 4Q21 compared to $792 million in 4Q20) 13 $41.4 $37.2 $35.8 $40.1
$106.5 $95.2 $95.5 $96.7 $109.2 $104.0 $93.7 $94.5 $95.3 $99.2 4Q20 1Q21 2Q21 3Q21 4Q21 56.7% 53.6% 54.5% 53.1% 62.1% 55.4% 52.7% 53.9% 52.3% 56.5% Efficiency Ratio Expenses Disciplined Expense Management $ in millions Linked Quarter x Annualized GAAP and operating expenses increased 12.8% and 4.1%, respectively • Primary reason for 4Q increase is due to Aquesta Year - over - Year x GAAP expenses increased 2.5% while operating expenses decreased 4.6% • The majority of the increase is driven by the FinTrust and Aquesta acquisitions, which closed on July 6, 2021 and October 1, 2021, respectively • The decrease in operating expenses was due to an $8.5 million contribution to our foundation in 4Q20 (1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measures t o GAAP performance measures 14 GAAP Operating (1) GAAP Operating (1)
x As of December 31, approximately 95% of our PPP loans, representing $1.9 billion in loans, have been forgiven by the SBA x We have $88 million in PPP loans remaining, of which Aquesta contributed $35 million x Total PPP loans forgiven in 4Q21 of $122 million; Aquesta contributed $25 million to total forgiveness during the quarter x In 4Q21, we recognized $3.9 million in PPP fees x We have $1.8 million of PPP fees remaining to recognize x Average loan amount fully forgiven of $106 thousand 15 PPP Update $88 $1,802 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 PPP Totals ($ in millions) Not Forgiven Forgiven
Credit Quality 16 x 4Q21 net charge - offs of $248 thousand, or 0.01% of average loans, annualized x The provision for credit losses was negative $647 thousand, as $3.3 million to establish the Aquesta initial loan loss reserve was offset by a $3.9 million reserve release x 2021 included $38 million of provision release compared to $80 million of provisioning in 2020 Net Charge - Offs as % of Average Loans Provision for Credit Losses & NCOs ($ in millions) $33.5 $21.8 $2.9 - $12.3 - $13.6 - $11.0 - $0.6 $6.1 $2.5 $1.5 - $0.3 - $0.5 $0.6 $0.2 -$14.0 -$9.0 -$4.0 $1.0 $6.0 $11.0 $16.0 $21.0 $26.0 $31.0 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Provision for Credit Losses $ Net Charge-Offs $ 0.25% 0.09% 0.05% - 0.01% - 0.02% 0.02% 0.01% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
x Special mention loans increase by 0.10% (from $278 million in 3Q21 to $304 million in 4Q21, an increase of $26 million) • Aquesta special mention loans of $33 million • Excluding Aquesta , special mention loans decreased $7 million x Substandard, but still accruing loans, declined 0.20% quarter over quarter as a % of total loans x Non - performing assets improved by $12.5 million during the quarter and stand at 0.28% of total loans Higher - Risk Loan Trends 17 Special Mention & Substandard Accruing Loans as a % of Total Loans Non - Performing Assets as a % of Total Loans 0.55% 0.48% 0.41% 0.41% 0.28% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 4Q20 1Q21 2Q21 3Q21 4Q21 2.6% 3.2% 3.2% 2.5% 2.6% 1.5% 1.5% 1.7% 1.6% 1.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4Q20 1Q21 2Q21 3Q21 4Q21 Special Mention (%) Substandard Accruing(%)
18 ACL Walk Forward ACL / Loans: 0.99% ACL / Loans excl. PPP: 1.00% 0.97% 0.97% Note: ACL includes the reserve for unfunded commitments $110,875 $113,524 $2,127 ( $550 ) ( $248 ) ( $9 ) ( $5,481 ) $3,544 $3,266 3Q21 ACL Loan Growth Reserve for Unfunded Commitments (net of Aquesta) NCOs Specific Reserve Model / Forecast Changes Aquesta Day 1 PCD Credit Allowance Aquesta Day 2 Non PCD Double Dip 4Q21 ACL ($000)
Enhancing Our Franchise Through Strategic M&A 1. Includes MSAs with a population greater than 300,000 2 . Does not include merger adjustments Note: Dollar values in millions, except per share values Source: S&P Global Market Intelligence, public filings 19 Pro Forma Balance Sheet (2) Pro Forma Enhancing United’s High - Growth Southeast Footprint x 7 / 6 / 2021 – Closed the FinTrust Capital Partners, LLC acquisition x 10 / 1 / 2021 – Closed the Aquesta Financial Holdings, Inc . acquisition x 1 / 1 / 2022 – Closed the Reliant Bancorp, Inc . acquisition x Expanding into the attractive Nashville, TN ; Charlotte, NC ; and Wilmington, NC markets, 3 of the top 20 fastest growing MSAs in the Southeast ( 1 ) 8.4% TCE / TCA 8.9% Leverage Ratio 11.9% CET - 1 Ratio 12.5% Tier 1 Ratio 14.5% Total Capital Ratio 1Q22 Pro Forma Capital x $ 3 billion community bank with top 10 market share in the Nashville MSA x Recognized as a top performer in the top 10 % of domestic community banks x One of two Tennessee banks recognized by S&P Global Market Intelligence as a top performing community bank out of 4 , 287 banks with under $ 3 billion in assets x Gaining talented Tennessee leadership team, led by DeVan Ard’s nearly 40 years of banking experience and knowledge of the Nashville marketplace Reliant Highlights Nashville Market Highlights Well - Capitalized at Close TCE / TCA Leverage Ratio CET - 1 Ratio Tier 1 Ratio Total Capital Ratio 4Q21 UCBI Capital 8.1% 8.8% 12.4% 13.1% 14.6% x Flourishing local economy continues to strengthen and forecasters are predicting substantial economic growth over the next five years x Nashville ranked in the top 10 metros for job and population growth for the past eight years x Downtown Nashville population increased 130 % between 2010 - 2018 x Tennessee is home to 10 Fortune 500 companies x In 2020 , Nashville saw significant investments from industry leading companies such as Amazon, Facebook, General Motors, etc . x Recent corporate relocations to the Nashville MSA include Nissan, Dell Computer, Mitsubishi Motors, and Ernst & Young As of 4Q21 Total Assets $20,947 $3,004 $23,951 Total Gross Loans $11,760 $2,384 $14,144 Total Deposits $18,241 $2,503 $20,744
4 Q21 INVESTOR PRESENTATION Exhibits
Blended Cash and Securities Yield Cash and Securities 21 $ in billions $2.6 $2.5 $2.4 $3.1 $3.6 $4.3 $4.9 $5.3 $5.7 $0.4 $0.4 $1.2 $0.9 $1.5 $1.2 $1.3 $1.7 $2.2 1.80% 1.38% 0.69% 0.65% 0.86% 1.31% 1.58% 1.32% 1.53% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Investments ($) Fed Funds & Interest Earning Cash ($) Avg. 10-Yr Treasury 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Securities Yield % 2.77% 2.84% 2.68% 2.21% 1.83% 1.62% 1.58% 1.51% 1.46% Blended Yield % 2.56% 2.63% 2.14% 1.61% 1.36% 1.30% 1.31% 1.19% 1.10%
x Navitas 4Q21 NCOs = 0.29% x Economic recovery and government intervention driving historically low loss rates x Navitas ACL - Loans equated to 1.50% as of 4Q21 x There were no Navitas deferrals in 4Q21, down 0.02% from 3Q21 Navitas Performance 22 $ in millions $125 $126 $94 $134 $145 $148 $181 $186 $204 8.2% 8.9% 9.4% 22.6% 19.7% 22.9% 24.7% 19.7% 25.8% 9.30% 9.45% 9.39% 9.19% 9.12% 9.08% 9.08% 9.01% 8.89% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $0 $50 $100 $150 $200 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Originations $ Loan Growth % (ann.) Portfolio Yield %
Expanding Mortgage Throughout the Footprint x Gain on sale % has declined, but remains above pre - pandemic levels x Purchase / Refi mix has shifted from 54% / 46% in 4Q20 to 65% / 35% in 4Q21 x Technology investments have also paid off as we have been able to better market to our existing customers and also have enabled us to cut processing costs and process times 23 $ in millions $411 $801 $802 $910 $792 $993 $702 $731 $695 $225 $259 $395 $402 $410 $336 $407 $320 $285 3.3% 2.8% 4.3% 5.4% 5.1% 4.4% 3.9% 4.8% 3.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% $0 $200 $400 $600 $800 $1,000 $1,200 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Mortgage locks $ Loans sold $ Gain on sale %
Selected Segments – Senior Care 24 x Senior Care lending team are dedicated specialists with significant experience in the space x Senior Care portfolio outstanding for UCBI totaled $520 million as of 4Q21, or 4% of total loans x As of December 31, $6.8 million of Senior Care loans were in nonaccrual x As of December 31, $169 million of Senior Care loans were special mention and $73 million were substandard accruing 1% 20% 25% 49% 6% $ in millions $10 $11 $7 $21 $46 $48 $64 $73 $73 $7 $13 $13 $34 $100 $172 $170 $170 $169 $456 $463 $486 $503 $511 $535 $537 $549 $520 $0 $100 $200 $300 $400 $500 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Nonaccruals $ Substandard Accruing $ Special Mention $ Pass $
Non - GAAP Reconciliation Tables $ in thousands, except per share data 25 4Q20 1Q21 2Q21 3Q21 4Q21 Expenses Expenses - GAAP 106,490$ 95,194$ 95,540$ 96,749$ 109,156$ Merger-related and other charges (2,452) (1,543) (1,078) (1,437) (9,912) Expenses - Operating 104,038$ 93,651$ 94,462$ 95,312$ 99,244$ Diluted Earnings per share Diluted earnings per share - GAAP 0.66$ 0.82$ 0.78$ 0.82$ 0.55$ Merger-related and other charges 0.02 0.01 0.01 0.01 0.09 Diluted earnings per share - Operating 0.68 0.83 0.79 0.83 0.64 Book Value per share Book Value per share - GAAP 21.90$ 22.15$ 22.81$ 23.25$ 23.63$ Effect of goodwill and other intangibles (4.34) (4.32) (4.32) (4.57) (5.21) Tangible book value per share 17.56$ 17.83$ 18.49$ 18.68$ 18.42$ Return on Tangible Common Equity Return on common equity - GAAP 12.36 % 15.37 % 14.08 % 14.26 % 9.32 % Effect of merger-related and other charges 0.41 0.26 0.17 0.22 1.42 Return on common equity - Operating 12.77 15.63 14.25 14.48 10.74 Effect of goodwill and intangibles 3.46 4.05 3.56 3.75 3.19 Return on tangible common equity - Operating 16.23 % 19.68 % 17.81 % 18.23 % 13.93 % Return on Assets Return on assets - GAAP 1.30 % 1.62 % 1.46 % 1.48 % 0.96 % Merger-related and other charges 0.04 0.03 0.02 0.02 0.14 Return on assets - Operating 1.34 % 1.65 % 1.48 % 1.50 % 1.10 %
Non - GAAP Reconciliation Tables $ in thousands, except per share data 26 4Q20 1Q21 2Q21 3Q21 4Q21 Return on Assets to return on assets- pre-tax pre-provision Return on assets - GAAP 1.30 % 1.62 % 1.46 % 1.48 % 0.96 % Income tax expense 0.40 0.46 0.47 0.45 0.26 Provision for credit losses 0.07 (0.28) (0.29) (0.23) (0.01) Return on assets - pre-tax, pre-provision 1.77 1.80 1.64 1.70 1.21 Merger-related and other charges 0.05 0.03 0.03 0.03 0.19 Return on assets - pre-tax, pre-provision, excluding merger-related and other charges 1.82 % 1.83 % 1.67 % 1.73 % 1.40 % Efficiency Ratio Efficiency Ratio - GAAP 56.73 % 53.55 % 54.53 % 53.11 % 62.12 % Merger-related and other charges (1.31) (0.87) (0.61) (0.78) (5.64) Efficiency Ratio - Operating 55.42 % 52.68 % 53.92 % 52.33 % 56.48 % Tangible common equity to tangible assets Equity to assets ratio - GAAP 11.29 % 10.95 % 11.04 % 10.89 % 10.61 % Effect of goodwill and other intangibles (1.94) (1.86) (1.82) (1.87) (2.06) Effect of preferred equity (0.54) (0.52) (0.51) (0.49) (0.46) Tangible common equity to tangible assets ratio 8.81 % 8.57 % 8.71 % 8.53 % 8.09 % Allowance for credit losses - total to loans Allowance for credit losses - total to loans (GAAP) 1.30 % 1.16 % 1.08 % 0.99 % 0.97 % Effect of PPP loans 0.08 0.10 0.04 0.01 0.00 Allowance for credit losses - total to loans, excluding PPP loans 1.38 % 1.26 % 1.12 % 1.00 % 0.97 %
Glossary 27 ACL – Allowance for Credit Losses MLO – Mortgage Loan Officer ALLL – Allowance for Loan Losses MTM – Marked-to-market AUA – Assets Under Administration MSA – Metropolitan Statistical Area BPS – Basis Points MSR – Mortgage Servicing Rights Asset C&I – Commercial and Industrial NCO – Net Charge-Offs C&D – Construction and Development NIM – Net Interest Margin CECL – Current Expected Credit Losses NPA – Non-Performing Asset CET1 – Common Equity Tier 1 Capital NSF – Non-sufficient Funds CRE – Commercial Real Estate OO RE – Owner Occupied Commercial Real Estate CSP – Customer Service Profiles PCD – Loans Purchased with Credit Deterioration DDA – Demand Deposit Account PPP – Paycheck Protection Program EOP – End of Period PTPP – Pre-Tax, Pre-Provision Earnings EPS – Earnings Per Share RBC – Risk Based Capital FTE – Fully-taxable equivalent 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 YOY – Year over Year