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
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| Item 2.02 | Results of Operations and Financial Condition. |
On April 24, 2024, United Community Banks, Inc. (“United”) issued a press release announcing financial results for its first fiscal quarter of 2024. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
| Item 7.01 | Regulation FD Disclosure. |
On April 24, 2024, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for its first fiscal quarter of 2024. 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.
The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.1 | United Community Banks, Inc. Press Release, dated April 24, 2024. |
| 99.2 | Slide presentation to be used during April 24, 2024 earnings call. |
| 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 24, 2024 | ||
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
GREENVILLE, SC – April 24, 2024 - United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the first quarter was $62.6 million and pre-tax, pre-provision income was $93.7 million. Diluted earnings per share of $0.51 for the quarter represented a decrease of $0.01 or 2%, from the first quarter a year ago and an increase of $0.40 from the fourth quarter of 2023, during which merger charges, losses from a bond portfolio restructuring, and an FDIC special assessment had a significant negative impact on earnings.
On an operating basis, diluted earnings per share of $0.52 were slightly lower compared to last quarter, with the primary drivers of the decrease being a seasonal increase in certain operating expenses and a higher effective tax rate, as well as a lower day count. These were offset by a favorable MSR asset write-up and lower provision expense. Core deposits, excluding brokered deposits and public funds, grew by 5% annualized and loans grew at a 1.2% annualized rate during the quarter. Net interest revenue was lower by 2% during the quarter despite an increase in average loan balances, as lower average interest-earning assets and a lower day count offset the effect of a higher margin.
For the first quarter, United’s return on assets was 0.90% and 0.93% on an operating basis. Return on equity was 7.14% and return on tangible common equity was 10.68%. On a pre-tax, pre-provision basis, operating return on assets was 1.40% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.49%, up 13 basis points from the fourth quarter of 2023.
Chairman and CEO Lynn Harton stated, “We reported solid results in the first quarter, with strong pre-tax, pre-provision earnings, a stable margin, and good credit performance. Loan growth slowed as expected while core deposit growth was stronger than we anticipated.” Harton continued “Economic conditions in our markets continue to be very positive. However, we are mindful of the uncertainties in the environment, such as continuing inflation, the tension between a very tight monetary policy and a very loose fiscal policy, and ongoing global conflicts. Given those uncertainties, we continue to manage conservatively so that we can remain a source of strength for our communities and customers.”
United’s net interest margin increased by 1 basis point to 3.20% from the fourth quarter. Interest-earning assets were modestly lower and the average yield on United’s interest-earning assets was up 8 basis points to 5.39%, and its cost of interest-bearing liabilities increased by 7 basis points to 3.23%, contributing to the increase in the net interest margin. Cost of deposits, including non-interest-bearing deposits was 2.32%. Net charge-offs were $12.9 million or 0.28% of average loans during the quarter, up 6 basis points compared to the fourth quarter of 2023, and NPAs were 39 basis points relative to total assets, up 5 basis points from the previous quarter.
Mr. Harton concluded, “We approach 2024 with continued optimism given the strength of our company, driven by an outstanding team of employees. In the first quarter, we became a 10-time winner of the JD Power Award for Best Retail Banking Satisfaction in the Southeast. We also received 15 Greenwich Excellence Awards for Small Business Banking. These awards reflect the passion and skill that our teams exhibit every day in the quest to serve our customers in the best way possible.”
First Quarter 2024 Financial Highlights:
| • | Net income of $62.6 million and pre-tax, pre-provision income of $93.7 million |
| • | EPS decreased by 2% compared to first quarter 2023 on a GAAP basis and 10% on an operating basis; compared to fourth quarter 2023, EPS increased 364% on a GAAP basis and decreased 2% on an operating basis |
| • | Return on assets of 0.90%, or 0.93% on an operating basis |
| • | Pre-tax, pre-provision return on assets of 1.40% on an operating basis |
| • | Return on common equity of 7.14% |
| • | Return on tangible common equity of 10.68% on an operating basis |
| • | A provision for credit losses of $12.9 million, which increased the allowance for loan losses to 1.15% of loans from 1.14% in the fourth quarter |
| • | Loan production of $881 million, resulting in loan growth of 1.2% annualized for the quarter |
| • | Core deposits, excluding brokered deposits and public funds, grew by 5% annualized |
| • | Net interest margin of 3.20% increased by 1 basis point from the fourth quarter |
| • | Mortgage closings of $171 million compared to $225 million a year ago; mortgage rate locks of $260 million compared to $335 million a year ago |
| • | Noninterest income was up $62.7 million on a linked quarter basis, primarily driven by the $51.7 million bond portfolio restructuring charge in the fourth quarter. Mortgage Loan and Related Fees were $7.5 million, which was $5.6 million higher compared to the fourth quarter, largely attributable to a favorable mortgage servicing rights asset write-up compared to a write-down last quarter |
| • | Noninterest expenses decreased by $9.6 million compared to the fourth quarter due to lower non-operating charges including merger-related charges and the FDIC special assessment |
| • | Efficiency ratio of 60.5%, or 59.2% on an operating basis |
| • | Net charge-offs of $12.9 million, or 28 basis points as a percent of average loans, up 6 basis points from the net charge-offs level experienced in the fourth quarter |
| • | Nonperforming assets of 0.39% of total assets, up 5 basis points compared to December 31, 2023 |
| • | Quarterly common shareholder dividend of $0.23 per share declared during the quarter, which was flat year-over-year |
Conference Call
United will hold a conference call on Wednesday, April 24, 2024, 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/10187792/fc12c215d0. 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 can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, www.ucbi.com.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
| 2024 | 2023 | First Quarter 2024 - |
|||||||||||||||||||||
| First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
2023 Change |
||||||||||||||||||
| INCOME SUMMARY | |||||||||||||||||||||||
| Interest revenue | $ | 336,728 | $ | 338,698 | $ | 323,147 | $ | 295,775 | $ | 279,487 | |||||||||||||
| Interest expense | 137,579 | 135,245 | 120,591 | 95,489 | 68,017 | ||||||||||||||||||
| Net interest revenue | 199,149 | 203,453 | 202,556 | 200,286 | 211,470 | (6 | )% | ||||||||||||||||
| Provision for credit losses | 12,899 | 14,626 | 30,268 | 22,753 | 21,783 | ||||||||||||||||||
| Noninterest income | 39,587 | (23,090 | ) | 31,977 | 36,387 | 30,209 | 31 | ||||||||||||||||
| Total revenue | 225,837 | 165,737 | 204,265 | 213,920 | 219,896 | 3 | |||||||||||||||||
| Noninterest expenses | 145,002 | 154,587 | 144,474 | 132,407 | 139,805 | 4 | |||||||||||||||||
| Income before income tax expense | 80,835 | 11,150 | 59,791 | 81,513 | 80,091 | 1 | |||||||||||||||||
| Income tax expense | 18,204 | (2,940 | ) | 11,925 | 18,225 | 17,791 | 2 | ||||||||||||||||
| Net income | 62,631 | 14,090 | 47,866 | 63,288 | 62,300 | 1 | |||||||||||||||||
| Non-operating items | 2,187 | 67,450 | 9,168 | 3,645 | 8,631 | ||||||||||||||||||
| Income tax benefit of non-operating items | (493 | ) | (16,714 | ) | (2,000 | ) | (820 | ) | (1,955 | ) | |||||||||||||
| Net income - operating (1) | $ | 64,325 | $ | 64,826 | $ | 55,034 | $ | 66,113 | $ | 68,976 | (7 | ) | |||||||||||
| Pre-tax pre-provision income (5) | $ | 93,734 | $ | 25,776 | $ | 90,059 | $ | 104,266 | $ | 101,874 | (8 | ) | |||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||||||
| Per common share: | |||||||||||||||||||||||
| Diluted net income - GAAP | $ | 0.51 | $ | 0.11 | $ | 0.39 | $ | 0.53 | $ | 0.52 | (2 | ) | |||||||||||
| Diluted net income - operating (1) | 0.52 | 0.53 | 0.45 | 0.55 | 0.58 | (10 | ) | ||||||||||||||||
| Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | — | |||||||||||||||||
| Book value | 26.83 | 26.52 | 25.87 | 25.98 | 25.76 | 4 | |||||||||||||||||
| Tangible book value (3) | 18.71 | 18.39 | 17.70 | 17.83 | 17.59 | 6 | |||||||||||||||||
| Key performance ratios: | |||||||||||||||||||||||
| Return on common equity - GAAP (2)(4) | 7.14 | % | 1.44 | % | 5.32 | % | 7.47 | % | 7.34 | % | |||||||||||||
| Return on common equity - operating (1)(2)(4) | 7.34 | 7.27 | 6.14 | 7.82 | 8.15 | ||||||||||||||||||
| Return on tangible common equity - operating (1)(2)(3)(4) | 10.68 | 10.58 | 9.03 | 11.35 | 11.63 | ||||||||||||||||||
| Return on assets - GAAP (4) | 0.90 | 0.18 | 0.68 | 0.95 | 0.95 | ||||||||||||||||||
| Return on assets - operating (1)(4) | 0.93 | 0.92 | 0.79 | 1.00 | 1.06 | ||||||||||||||||||
| Return on assets - pre-tax pre-provision - operating (1)(4)(5) | 1.40 | 1.33 | 1.44 | 1.65 | 1.71 | ||||||||||||||||||
| Net interest margin (fully taxable equivalent) (4) | 3.20 | 3.19 | 3.24 | 3.37 | 3.61 | ||||||||||||||||||
| Efficiency ratio - GAAP | 60.47 | 66.33 | 61.32 | 55.71 | 57.20 | ||||||||||||||||||
| Efficiency ratio - operating (1) | 59.15 | 59.57 | 57.43 | 54.17 | 53.67 | ||||||||||||||||||
| Equity to total assets | 12.06 | 11.95 | 11.85 | 11.89 | 11.90 | ||||||||||||||||||
| Tangible common equity to tangible assets (3) | 8.49 | 8.36 | 8.18 | 8.21 | 8.17 | ||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||
| Nonperforming assets ("NPAs") | $ | 107,230 | $ | 92,877 | $ | 90,883 | $ | 103,737 | $ | 73,403 | 46 | ||||||||||||
| Allowance for credit losses - loans | 210,934 | 208,071 | 201,557 | 190,705 | 176,534 | 19 | |||||||||||||||||
| Allowance for credit losses - total | 224,119 | 224,128 | 219,624 | 212,277 | 197,923 | 13 | |||||||||||||||||
| Net charge-offs | 12,908 | 10,122 | 26,638 | 8,399 | 7,084 | ||||||||||||||||||
| Allowance for credit losses - loans to loans | 1.15 | % | 1.14 | % | 1.11 | % | 1.10 | % | 1.03 | % | |||||||||||||
| Allowance for credit losses - total to loans | 1.22 | 1.22 | 1.21 | 1.22 | 1.16 | ||||||||||||||||||
| Net charge-offs to average loans (4) | 0.28 | 0.22 | 0.59 | 0.20 | 0.17 | ||||||||||||||||||
| NPAs to total assets | 0.39 | 0.34 | 0.34 | 0.40 | 0.28 | ||||||||||||||||||
| AT PERIOD END ($ in millions) | |||||||||||||||||||||||
| Loans | $ | 18,375 | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | 7 | ||||||||||||
| Investment securities | 5,859 | 5,822 | 5,701 | 5,914 | 5,915 | (1 | ) | ||||||||||||||||
| Total assets | 27,365 | 27,297 | 26,869 | 26,120 | 25,872 | 6 | |||||||||||||||||
| Deposits | 23,332 | 23,311 | 22,858 | 22,252 | 22,005 | 6 | |||||||||||||||||
| Shareholders’ equity | 3,300 | 3,262 | 3,184 | 3,106 | 3,078 | 7 | |||||||||||||||||
| Common shares outstanding (thousands) | 119,137 | 119,010 | 118,976 | 115,266 | 115,152 | 3 | |||||||||||||||||
(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. (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.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
(in thousands, except per share data)
| 2024 | 2023 | |||||||||||||||||||
| First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
First Quarter |
||||||||||||||||
| Net income to operating income reconciliation | ||||||||||||||||||||
| Net income (GAAP) | $ | 62,631 | $ | 14,090 | $ | 47,866 | $ | 63,288 | $ | 62,300 | ||||||||||
| Bond portfolio restructuring loss | — | 51,689 | — | — | — | |||||||||||||||
| Gain on lease termination | (2,400 | ) | — | — | — | — | ||||||||||||||
| FDIC special assessment | 2,500 | 9,995 | — | — | — | |||||||||||||||
| Merger-related and other charges | 2,087 | 5,766 | 9,168 | 3,645 | 8,631 | |||||||||||||||
| Income tax benefit of non-operating items | (493 | ) | (16,714 | ) | (2,000 | ) | (820 | ) | (1,955 | ) | ||||||||||
| Net income - operating | $ | 64,325 | $ | 64,826 | $ | 55,034 | $ | 66,113 | $ | 68,976 | ||||||||||
| Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||
| Net income (GAAP) | $ | 62,631 | $ | 14,090 | $ | 47,866 | $ | 63,288 | $ | 62,300 | ||||||||||
| Income tax expense | 18,204 | (2,940 | ) | 11,925 | 18,225 | 17,791 | ||||||||||||||
| Provision for credit losses | 12,899 | 14,626 | 30,268 | 22,753 | 21,783 | |||||||||||||||
| Pre-tax pre-provision income | $ | 93,734 | $ | 25,776 | $ | 90,059 | $ | 104,266 | $ | 101,874 | ||||||||||
| Diluted income per common share reconciliation | ||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | 0.51 | $ | 0.11 | $ | 0.39 | $ | 0.53 | $ | 0.52 | ||||||||||
| Bond portfolio restructuring loss | — | 0.32 | — | — | — | |||||||||||||||
| Gain on lease termination | (0.02 | ) | — | — | — | — | ||||||||||||||
| FDIC special assessment | 0.02 | 0.06 | — | — | — | |||||||||||||||
| Merger-related and other charges | 0.01 | 0.04 | 0.06 | 0.02 | 0.06 | |||||||||||||||
| Diluted income per common share - operating | $ | 0.52 | $ | 0.53 | $ | 0.45 | $ | 0.55 | $ | 0.58 | ||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||
| Book value per common share (GAAP) | $ | 26.83 | $ | 26.52 | $ | 25.87 | $ | 25.98 | $ | 25.76 | ||||||||||
| Effect of goodwill and other intangibles | (8.12 | ) | (8.13 | ) | (8.17 | ) | (8.15 | ) | (8.17 | ) | ||||||||||
| Tangible book value per common share | $ | 18.71 | $ | 18.39 | $ | 17.70 | $ | 17.83 | $ | 17.59 | ||||||||||
| Return on tangible common equity reconciliation | ||||||||||||||||||||
| Return on common equity (GAAP) | 7.14 | % | 1.44 | % | 5.32 | % | 7.47 | % | 7.34 | % | ||||||||||
| Bond portfolio restructuring loss | — | 4.47 | — | — | — | |||||||||||||||
| Gain on lease termination | (0.22 | ) | — | — | — | — | ||||||||||||||
| FDIC special assessment | 0.23 | 0.86 | — | — | — | |||||||||||||||
| Merger-related and other charges | 0.19 | 0.50 | 0.82 | 0.35 | 0.81 | |||||||||||||||
| Return on common equity - operating | 7.34 | 7.27 | 6.14 | 7.82 | 8.15 | |||||||||||||||
| Effect of goodwill and other intangibles | 3.34 | 3.31 | 2.89 | 3.53 | 3.48 | |||||||||||||||
| Return on tangible common equity - operating | 10.68 | % | 10.58 | % | 9.03 | % | 11.35 | % | 11.63 | % | ||||||||||
| Return on assets reconciliation | ||||||||||||||||||||
| Return on assets (GAAP) | 0.90 | % | 0.18 | % | 0.68 | % | 0.95 | % | 0.95 | % | ||||||||||
| Bond portfolio restructuring loss | — | 0.57 | — | — | — | |||||||||||||||
| Gain on lease termination | (0.03 | ) | — | — | — | — | ||||||||||||||
| FDIC special assessment | 0.03 | 0.11 | — | — | — | |||||||||||||||
| Merger-related and other charges | 0.03 | 0.06 | 0.11 | 0.05 | 0.11 | |||||||||||||||
| Return on assets - operating | 0.93 | % | 0.92 | % | 0.79 | % | 1.00 | % | 1.06 | % | ||||||||||
| Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||
| Return on assets (GAAP) | 0.90 | % | 0.18 | % | 0.68 | % | 0.95 | % | 0.95 | % | ||||||||||
| Income tax (benefit) expense | 0.27 | (0.04 | ) | 0.18 | 0.29 | 0.29 | ||||||||||||||
| Provision for credit losses | 0.19 | 0.21 | 0.45 | 0.35 | 0.34 | |||||||||||||||
| Bond portfolio restructuring loss | — | 0.75 | — | — | — | |||||||||||||||
| Gain on lease termination | (0.04 | ) | — | — | — | — | ||||||||||||||
| FDIC special assessment | 0.04 | 0.15 | — | — | — | |||||||||||||||
| Merger-related and other charges | 0.04 | 0.08 | 0.13 | 0.06 | 0.13 | |||||||||||||||
| Return on assets - pre-tax pre-provision - operating | 1.40 | % | 1.33 | % | 1.44 | % | 1.65 | % | 1.71 | % | ||||||||||
| Efficiency ratio reconciliation | ||||||||||||||||||||
| Efficiency ratio (GAAP) | 60.47 | % | 66.33 | % | 61.32 | % | 55.71 | % | 57.20 | % | ||||||||||
| Gain on lease termination | 0.60 | — | — | — | — | |||||||||||||||
| FDIC special assessment | (1.05 | ) | (4.29 | ) | — | — | — | |||||||||||||
| Merger-related and other charges | (0.87 | ) | (2.47 | ) | (3.89 | ) | (1.54 | ) | (3.53 | ) | ||||||||||
| Efficiency ratio - operating | 59.15 | % | 59.57 | % | 57.43 | % | 54.17 | % | 53.67 | % | ||||||||||
| Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||
| Equity to total assets (GAAP) | 12.06 | % | 11.95 | % | 11.85 | % | 11.89 | % | 11.90 | % | ||||||||||
| Effect of goodwill and other intangibles | (3.25 | ) | (3.27 | ) | (3.33 | ) | (3.31 | ) | (3.36 | ) | ||||||||||
| Effect of preferred equity | (0.32 | ) | (0.32 | ) | (0.34 | ) | (0.37 | ) | (0.37 | ) | ||||||||||
| Tangible common equity to tangible assets | 8.49 | % | 8.36 | % | 8.18 | % | 8.21 | % | 8.17 | % | ||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
| 2024 | 2023 | Linked | Year over | |||||||||||||||||||||||||
| (in millions) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Quarter Change | Year Change | |||||||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||||||||
| Owner occupied commercial RE | $ | 3,310 | $ | 3,264 | $ | 3,279 | $ | 3,111 | $ | 3,141 | $ | 46 | $ | 169 | ||||||||||||||
| Income producing commercial RE | 4,206 | 4,264 | 4,130 | 3,670 | 3,611 | (58 | ) | 595 | ||||||||||||||||||||
| Commercial & industrial | 2,405 | 2,411 | 2,504 | 2,550 | 2,442 | (6 | ) | (37 | ) | |||||||||||||||||||
| Commercial construction | 1,936 | 1,860 | 1,850 | 1,739 | 1,806 | 76 | 130 | |||||||||||||||||||||
| Equipment financing | 1,544 | 1,543 | 1,534 | 1,510 | 1,447 | 1 | 97 | |||||||||||||||||||||
| Total commercial | 13,401 | 13,342 | 13,297 | 12,580 | 12,447 | 59 | 954 | |||||||||||||||||||||
| Residential mortgage | 3,240 | 3,199 | 3,043 | 2,905 | 2,756 | 41 | 484 | |||||||||||||||||||||
| Home equity | 969 | 959 | 941 | 927 | 930 | 10 | 39 | |||||||||||||||||||||
| Residential construction | 257 | 302 | 399 | 463 | 492 | (45 | ) | (235 | ) | |||||||||||||||||||
| Manufactured housing | 328 | 336 | 343 | 340 | 326 | (8 | ) | 2 | ||||||||||||||||||||
| Consumer | 180 | 181 | 180 | 180 | 174 | (1 | ) | 6 | ||||||||||||||||||||
| Total loans | $ | 18,375 | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | $ | 56 | $ | 1,250 | ||||||||||||||
| LOANS BY MARKET | ||||||||||||||||||||||||||||
| Georgia | $ | 4,356 | $ | 4,357 | $ | 4,321 | $ | 4,281 | $ | 4,177 | $ | (1 | ) | $ | 179 | |||||||||||||
| South Carolina | 2,804 | 2,780 | 2,801 | 2,750 | 2,672 | 24 | 132 | |||||||||||||||||||||
| North Carolina | 2,566 | 2,492 | 2,445 | 2,355 | 2,257 | 74 | 309 | |||||||||||||||||||||
| Tennessee | 2,209 | 2,244 | 2,314 | 2,387 | 2,458 | (35 | ) | (249 | ) | |||||||||||||||||||
| Florida | 2,443 | 2,442 | 2,318 | 1,708 | 1,745 | 1 | 698 | |||||||||||||||||||||
| Alabama | 1,068 | 1,082 | 1,070 | 1,062 | 1,029 | (14 | ) | 39 | ||||||||||||||||||||
| Commercial Banking Solutions | 2,929 | 2,922 | 2,934 | 2,852 | 2,787 | 7 | 142 | |||||||||||||||||||||
| Total loans | $ | 18,375 | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | $ | 56 | $ | 1,250 | ||||||||||||||
UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
| 2024 | 2023 | |||||||||||||||||||||||
| First
Quarter |
Fourth Quarter |
Third
Quarter |
||||||||||||||||||||||
| NONACCRUAL LOANS | ||||||||||||||||||||||||
| Owner occupied RE | $ | 2,310 | $ | 3,094 | $ | 5,134 | ||||||||||||||||||
| Income producing RE | 29,186 | 30,128 | 30,255 | |||||||||||||||||||||
| Commercial & industrial | 20,134 | 13,467 | 13,382 | |||||||||||||||||||||
| Commercial construction | 1,862 | 1,878 | 1,065 | |||||||||||||||||||||
| Equipment financing | 8,829 | 8,505 | 9,206 | |||||||||||||||||||||
| Total commercial | 62,321 | 57,072 | 59,042 | |||||||||||||||||||||
| Residential mortgage | 16,569 | 13,944 | 11,893 | |||||||||||||||||||||
| Home equity | 4,984 | 3,772 | 4,009 | |||||||||||||||||||||
| Residential construction | 1,244 | 944 | 2,074 | |||||||||||||||||||||
| Manufactured housing | 19,797 | 15,861 | 12,711 | |||||||||||||||||||||
| Consumer | 54 | 94 | 89 | |||||||||||||||||||||
| Total nonaccrual loans | 104,969 | 91,687 | 89,818 | |||||||||||||||||||||
| OREO and repossessed assets | 2,261 | 1,190 | 1,065 | |||||||||||||||||||||
| Total NPAs | $ | 107,230 | $ | 92,877 | $ | 90,883 | ||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| 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 (RECOVERIES) BY CATEGORY | ||||||||||||||||||||||||
| Owner occupied RE | $ | 202 | 0.02 | % | $ | 35 | — | % | $ | 582 | 0.07 | % | ||||||||||||
| Income producing RE | 205 | 0.02 | (562 | ) | (0.05 | ) | 3,011 | 0.30 | ||||||||||||||||
| Commercial & industrial | 3,906 | 0.65 | 547 | 0.09 | 17,542 | 2.71 | ||||||||||||||||||
| Commercial construction | 20 | — | 33 | 0.01 | (49 | ) | (0.01 | ) | ||||||||||||||||
| Equipment financing | 6,362 | 1.66 | 7,926 | 2.05 | 6,325 | 1.62 | ||||||||||||||||||
| Total commercial | 10,695 | 0.32 | 7,979 | 0.24 | 27,411 | 0.83 | ||||||||||||||||||
| Residential mortgage | (16 | ) | — | 12 | — | (129 | ) | (0.02 | ) | |||||||||||||||
| Home equity | (54 | ) | (0.02 | ) | (68 | ) | (0.03 | ) | (2,784 | ) | (1.17 | ) | ||||||||||||
| Residential construction | 119 | 0.17 | (13 | ) | (0.01 | ) | 341 | 0.31 | ||||||||||||||||
| Manufactured housing | 1,569 | 1.90 | 1,444 | 1.69 | 1,168 | 1.34 | ||||||||||||||||||
| Consumer | 595 | 1.33 | 768 | 1.70 | 631 | 1.37 | ||||||||||||||||||
| Total | $ | 12,908 | 0.28 | $ | 10,122 | 0.22 | $ | 26,638 | 0.59 | |||||||||||||||
(1) Annualized.
UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
| (in thousands, except share and per share data) | March 31, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 203,932 | $ | 200,781 | ||||
| Interest-bearing deposits in banks | 758,001 | 803,094 | ||||||
| Cash and cash equivalents | 961,933 | 1,003,875 | ||||||
| Debt securities available-for-sale | 3,393,399 | 3,331,084 | ||||||
| Debt securities held-to-maturity (fair value $2,042,912 and $2,095,620, respectively) | 2,465,133 | 2,490,848 | ||||||
| Loans held for sale | 38,140 | 33,008 | ||||||
| Loans and leases held for investment | 18,374,844 | 18,318,755 | ||||||
| Less allowance for credit losses - loans and leases | (210,934 | ) | (208,071 | ) | ||||
| Loans and leases, net | 18,163,910 | 18,110,684 | ||||||
| Premises and equipment, net | 386,052 | 378,421 | ||||||
| Bank owned life insurance | 342,486 | 345,371 | ||||||
| Goodwill and other intangible assets, net | 987,539 | 990,087 | ||||||
| Other assets | 626,296 | 613,873 | ||||||
| Total assets | $ | 27,364,888 | $ | 27,297,251 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 6,409,659 | $ | 6,534,307 | ||||
| NOW and interest-bearing demand | 6,054,940 | 6,155,193 | ||||||
| Money market | 5,914,631 | 5,600,587 | ||||||
| Savings | 1,182,681 | 1,207,807 | ||||||
| Time | 3,595,236 | 3,649,498 | ||||||
| Brokered | 174,862 | 163,219 | ||||||
| Total deposits | 23,332,009 | 23,310,611 | ||||||
| Long-term debt | 324,854 | 324,823 | ||||||
| Accrued expenses and other liabilities | 407,915 | 400,292 | ||||||
| Total liabilities | 24,064,778 | 24,035,726 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock; $1 par value; 10,000,000 shares authorized; 3,662 shares Series I issued and outstanding; $25,000 per share liquidation preference | 88,266 | 88,266 | ||||||
| Common stock, $1 par value; 200,000,000 shares authorized, 119,136,518 and 119,010,319 shares issued and outstanding, respectively | 119,137 | 119,010 | ||||||
| Common stock issuable; 560,833 and 620,108 shares, respectively | 11,923 | 13,110 | ||||||
| Capital surplus | 2,702,807 | 2,699,112 | ||||||
| Retained earnings | 614,612 | 581,219 | ||||||
| Accumulated other comprehensive loss | (236,635 | ) | (239,192 | ) | ||||
| Total shareholders' equity | 3,300,110 | 3,261,525 | ||||||
| Total liabilities and shareholders' equity | $ | 27,364,888 | $ | 27,297,251 | ||||
UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
| Three Months Ended March 31, |
||||||||
| (in thousands, except per share data) | 2024 | 2023 | ||||||
| Interest revenue: | ||||||||
| Loans, including fees | $ | 283,983 | $ | 236,431 | ||||
| Investment securities, including tax exempt of $1,721 and $2,110, respectively | 46,436 | 39,986 | ||||||
| Deposits in banks and short-term investments | 6,309 | 3,070 | ||||||
| Total interest revenue | 336,728 | 279,487 | ||||||
| Interest expense: | ||||||||
| Deposits: | ||||||||
| NOW and interest-bearing demand | 46,211 | 17,599 | ||||||
| Money market | 50,478 | 25,066 | ||||||
| Savings | 706 | 538 | ||||||
| Time | 36,389 | 14,658 | ||||||
| Deposits | 133,784 | 57,861 | ||||||
| Short-term borrowings | — | 1,148 | ||||||
| Federal Home Loan Bank advances | — | 5,112 | ||||||
| Long-term debt | 3,795 | 3,896 | ||||||
| Total interest expense | 137,579 | 68,017 | ||||||
| Net interest revenue | 199,149 | 211,470 | ||||||
| Provision for credit losses | 12,899 | 21,783 | ||||||
| Net interest revenue after provision for credit losses | 186,250 | 189,687 | ||||||
| Noninterest income: | ||||||||
| Service charges and fees | 9,264 | 8,699 | ||||||
| Mortgage loan gains and other related fees | 7,511 | 4,521 | ||||||
| Wealth management fees | 6,313 | 5,724 | ||||||
| Gains from sales of other loans | 1,537 | 1,916 | ||||||
| Lending and loan servicing fees | 4,210 | 4,016 | ||||||
| Securities losses, net | — | (1,644 | ) | |||||
| Other | 10,752 | 6,977 | ||||||
| Total noninterest income | 39,587 | 30,209 | ||||||
| Total revenue | 225,837 | 219,896 | ||||||
| Noninterest expenses: | ||||||||
| Salaries and employee benefits | 84,985 | 78,698 | ||||||
| Communications and equipment | 11,920 | 10,008 | ||||||
| Occupancy | 11,099 | 9,889 | ||||||
| Advertising and public relations | 1,901 | 2,349 | ||||||
| Postage, printing and supplies | 2,648 | 2,537 | ||||||
| Professional fees | 5,988 | 6,072 | ||||||
| Lending and loan servicing expense | 1,827 | 2,319 | ||||||
| Outside services - electronic banking | 2,918 | 3,425 | ||||||
| FDIC assessments and other regulatory charges | 7,566 | 4,001 | ||||||
| Amortization of intangibles | 3,887 | 3,528 | ||||||
| Merger-related and other charges | 2,087 | 8,631 | ||||||
| Other | 8,176 | 8,348 | ||||||
| Total noninterest expenses | 145,002 | 139,805 | ||||||
| Income before income taxes | 80,835 | 80,091 | ||||||
| Income tax expense | 18,204 | 17,791 | ||||||
| Net income | 62,631 | 62,300 | ||||||
| Preferred stock dividends | 1,573 | 1,719 | ||||||
| Earnings allocated to participating securities | 345 | 339 | ||||||
| Net income available to common shareholders | $ | 60,713 | $ | 60,242 | ||||
| Net income per common share: | ||||||||
| Basic | $ | 0.51 | $ | 0.52 | ||||
| Diluted | 0.51 | 0.52 | ||||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 119,662 | 115,451 | ||||||
| Diluted | 119,743 | 115,715 | ||||||
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,
| 2024 | 2023 | |||||||||||||||||||||||
| (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) | $ | 18,299,739 | $ | 283,960 | 6.24 | % | $ | 16,897,372 | $ | 236,530 | 5.68 | % | ||||||||||||
| Taxable securities (3) | 5,828,391 | 44,715 | 3.07 | 6,059,323 | 37,876 | 2.50 | ||||||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 366,350 | 2,311 | 2.52 | 422,583 | 2,834 | 2.68 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 674,594 | 6,805 | 4.06 | 472,325 | 3,352 | 2.88 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 25,169,074 | 337,791 | 5.39 | 23,851,603 | 280,592 | 4.76 | ||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for credit losses | (212,996 | ) | (167,584 | ) | ||||||||||||||||||||
| Cash and due from banks | 221,203 | 271,210 | ||||||||||||||||||||||
| Premises and equipment | 386,021 | 329,135 | ||||||||||||||||||||||
| Other assets (3) | 1,618,315 | 1,484,936 | ||||||||||||||||||||||
| Total assets | $ | 27,181,617 | $ | 25,769,300 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 6,078,090 | 46,211 | 3.06 | $ | 4,499,907 | 17,599 | 1.59 | ||||||||||||||||
| Money market | 5,864,217 | 50,478 | 3.46 | 5,223,267 | 25,066 | 1.95 | ||||||||||||||||||
| Savings | 1,192,828 | 706 | 0.24 | 1,416,931 | 538 | 0.15 | ||||||||||||||||||
| Time | 3,596,486 | 35,944 | 4.02 | 2,348,588 | 12,313 | 2.13 | ||||||||||||||||||
| Brokered time deposits | 50,343 | 445 | 3.56 | 208,215 | 2,345 | 4.57 | ||||||||||||||||||
| Total interest-bearing deposits | 16,781,964 | 133,784 | 3.21 | 13,696,908 | 57,861 | 1.71 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 13 | — | — | 107,955 | 1,148 | 4.31 | ||||||||||||||||||
| Federal Home Loan Bank advances | 4 | — | — | 453,056 | 5,112 | 4.58 | ||||||||||||||||||
| Long-term debt | 324,838 | 3,795 | 4.70 | 324,701 | 3,896 | 4.87 | ||||||||||||||||||
| Total borrowed funds | 324,855 | 3,795 | 4.70 | 885,712 | 10,156 | 4.65 | ||||||||||||||||||
| Total interest-bearing liabilities | 17,106,819 | 137,579 | 3.23 | 14,582,620 | 68,017 | 1.89 | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 6,398,079 | 7,697,844 | ||||||||||||||||||||||
| Other liabilities | 390,451 | 357,367 | ||||||||||||||||||||||
| Total liabilities | 23,895,349 | 22,637,831 | ||||||||||||||||||||||
| Shareholders' equity | 3,286,268 | 3,131,469 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 27,181,617 | $ | 25,769,300 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 200,212 | $ | 212,575 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 2.16 | % | 2.87 | % | ||||||||||||||||||||
| Net interest margin (FTE) (4) | 3.20 | % | 3.61 | % | ||||||||||||||||||||
| (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) | Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $322 million in 2024 and $419 million in 2023 are included in other assets for purposes of this presentation. |
| (4) | Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets. |
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management and mortgage services. As of March 31, 2024, United Community had $27.3 billion in assets, 205 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of the J.D. Power’s award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United was named by American Banker as one of the “Best Banks to Work For” for the seventh consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. 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 - operating,” “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. Further, United’s management uses these measures in managing and evaluating United’s business and intends to refer to them in discussions about United’s operations and performance. 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. 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 general competitive, economic, political, regulatory 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, 2023, 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.
United qualifies all forward-looking statements by these cautionary statements.
# # #
Exhibit 99.2
Member FDIC. © 2024 United Community Bank | ucbi.com 1Q24 Investor Presentation April 24, 2024
Disclosures 2 CAUTIONARY STATEMENT This Investor Presentation 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 strength of our pipelines and their ability to support business growth across our markets and our belief that our high - quality balance sheet and business mix will support strong performance regardless of future economic conditions . 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 and any revenue synergies from 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 these acquisitions, ( 3 ) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to these acquisitions, ( 4 ) the risks relating to the integration of acquired banks’ 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, ( 5 ) the risks associated with United’s pursuit of future acquisitions, ( 6 ) the risk associated with expansion into new geographic or product markets, and ( 7 ) general competitive, economic, political, regulatory 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 , 2023 , 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 . United qualifies all forward - looking statements by these cautionary statements .
Disclosures 3 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,” “Noninterest income – 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 United’s 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 .
$27.4 BILLION IN TOTAL ASSETS United Community Banks, Inc. $23.3 BILLION IN TOTAL DEPOSITS Note: See Glossary located at the end of this presentation for reference on certain acronyms 205 BANKING OFFICES ACROSS THE SOUTHEAST Ten - time winner of the J.D. Power award that ranked us #1 IN CUSTOMER SATISFACTION with Consumer Banking in the Southeast in 2023 AMERICA’S MOST TRUSTWORTHY COMPANIES in 2023 and #2 in the banking industry - Newsweek $0.23 QUARTERLY DIVIDEND WORLD’S BEST BANKS in 2023 for four of the last five years – Forbes $5.7 BILLION IN AUA 12.8% TIER 1 RBC BEST BANKS TO WORK FOR in 2023 for the seventh consecutive year – American Banker 4 Premier Southeast Regional Bank – Committed to Service Since 1950 x Metro - focused branch network with locations in the fastest - growing MSAs in the Southeast x 196 branches, 9 LPOs, and 3 MLOs across six Southeast states; Top 10 deposit market share in GA and SC Extended Navitas and SBA Markets $18.4 BILLION IN TOTAL LOANS AMERICA’S BEST BANKS in 2023 for the ninth consecutive year – Forbes x Navitas subsidiary is a technology - enabled, small - ticket, essential - use commercial equipment financing provider x SBA business has both in - footprint and national business (4 specific verticals) UCBI Banking Offices Regional Full - Service Branch Network National Navitas and SBA Markets Company Overview
1.2% Annualized 1Q EOP loan growth $0.52 $0.11 $0.51 $0.58 $0.53 $0.52 1Q23 4Q23 1Q24 Diluted Earnings Per Share GAAP Operating 4.8% Annualized 1Q EOP deposit growth, excluding brokered deposits and public funds $25.76 $26.52 $26.83 $17.59 $18.39 $18.71 1Q23 4Q23 1Q24 Book Value Per Share GAAP Tangible 7.14% Return on common equity – GAAP 10.68% Return on tangible common equity – operating (1) Other 1Q notable items: $ 1.4 mm MSR write - up 0.93% Return on average assets – operating (1) 1.40% PTPP return on average assets – operating (1) 2.32% Cost of deposits 27% DDA / Total Deposits $0.51 Diluted earnings per share – GAAP $0.52 Diluted earnings per share – operating (1) 0.90% Return on average assets – GAAP 1Q24 Highlights (1) See non - GAAP reconciliation table slides in the exhibits to this Presentation for a reconciliation of operating performance measures to GAAP performance 0.95% 0.18% 0.90% 1.06% 0.92% 0.93% 1Q23 4Q23 1Q24 Return on Average Assets GAAP Operating 1.58% 0.35% 1.36% 1.71% 1.33% 1.40% 1Q23 4Q23 1Q24 PTPP Return on Average Assets PTPP Operating PTPP 5 60.5% Efficiency ratio – GAAP 59.2% Efficiency ratio – operating (1) (1) (1) (1) (1)
Outstanding Deposit Franchise Cumulative Total Deposit Beta of 44% through 1Q24 6 Strong Customer Deposit Growth x Customer deposits were up $10 million in 1Q24 despite seasonal declines in public funds accounts x Excluding brokered deposits and public funds, total deposits were up $238 million or 4.8% annualized from 4Q23 0.07% 3.65% 4.52% 4.99% 5.26% 5.25% 5.25% 0.06% 0.49% 1.10% 1.64% 2.03% 2.24% 2.32% 4Q21 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Fed Target Average UCBI Cost of Deposits 1Q24 Change in Customer Deposits $23,157 $23,147 4Q23 Total Customer Deposits Noninterest- bearing NOW Savings MMA Time 1Q24 Total Customer Deposits ($125) ($100) ($25) $314 ($54) $ in millions Competitive Market Pricing Drove Funding Costs Higher x 44% cumulative deposit beta since 4Q21, as cost of deposits moved to 2.32% from 2.24% in 4Q23 x DDA% moved to 27% of total deposits from 28% last quarter 1Q24 Public Funds Δ Noninterest - bearing NOW Savings MMA Time ($19.5) ($241.4) ($0.2) $26.1 $7.1
39% 11% 23% 1% 18% 5% 1% 2% 1Q24 Total Loans $18.4 billion Well - Diversified Loan Portfolio Quarter Highlights x Loans increased $56 million or 1.2% annualized x C&I includes Commercial & industrial, Owner occupied CRE and Equipment financing x Construction and CRE ratios as a percentage of total RBC were 76% and 213%, respectively x Top 25 relationships totaled $919 million or 5.0% of total loans x SNCs outstanding of $264 million or 1.4% of total loans x Project lending limit of $32 million x Conservative relationship lending limits driven by risk grades 7 1Q24 Loan Growth Attribution Manufactured Housing C&I Commercial Construction CRE Other Consumer Residential Mortgage Home Equity Residential Construction 18,375 $18,319 $41 $18 ( $3 ) 4Q23 Total Loans C&I CRE / Commercial Construction Mortgage / Consumer 1Q24 Total Loans $ in millions
x Substantial balance sheet liquidity and above - peer capital ratios x $5.9 billion securities portfolio offers significant near - and medium - term cash flow opportunities x FHLB borrowings remained at zero in 1Q24 7.9% 8.2% 8.2% 8.2% 8.4% 8.5% 7.7% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 UCBI KRX Peer Median Loans / Deposits % Tangible Common Equity / Tangible Assets % Common Equity Tier 1 RBC %* 77% 78% 78% 80% 79% 79% 86% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 UCBI KRX Peer Median 12.3% 12.1% 12.2% 12.2% 12.2% 12.4% 11.6% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 UCBI KRX Peer Median Balance Sheet Strength – Liquidity and Capital 8 *1Q24 regulatory capital ratios are preliminary
Risk - Based Capital Ratios Tangible Book Value Per Share x 1Q24 regulatory risk - based capital ratios increased from 4Q23 and remained above peers x The leverage ratio increased 21 bps to 9.68%, as compared to 4Q23 x Quarterly dividend of $0.23 per share x Net unrealized securities losses in AOCI improved by $1.7 million to $247 million in 1Q24 x AFS securities portfolio of $3.4 billion with a 2.4 - year duration x TCE% of 8.49% increased 13 bps from 4Q23 12.3% 12.1% 12.2% 12.2% 12.2% 11.6% 12.4% 0.5% 0.5% 0.5% 0.5% 0.4% 0.5% 0.5% 2.0% 1.8% 1.9% 1.9% 1.9% 1.9% 1.8% 14.8% 14.4% 14.6% 14.5% 14.5% 13.9% 14.6% 4Q22 1Q23 2Q23 3Q23 4Q23 4Q23 KRX Peer Median 1Q24* CET1 Non-common Tier 1 Tier 2 Total Capital $18.71 $18.39 $0.51 ( $0.24 ) $0.02 $0.03 4Q23 TBV GAAP Earnings Dividends Change in AOCI Other 1Q24 TBV 9 *1Q24 regulatory capital ratios are preliminary
$211.5 $203.5 $199.1 3.61% 3.19% 3.20% 3.53% 3.11% 3.13% $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 2.00% 2.50% 3.00% 3.50% 4.00% 1Q23 4Q23 1Q24 Net Interest Revenue Net Interest Margin Core Net Interest Margin 3.20% 3.19% 0.02% 0.00% ( 0.01% ) 4Q23 NIM Mix Change / Day Count Interest Rates Loan Accretion 1Q24 NIM Net Interest Revenue & Net Interest Margin 1Q24 Stabilized NIM x Net interest revenue decreased $4.3 million from 4Q23, as lower average interest - earning assets and a lower day count offset the effect of a higher margin x Core net interest margin of 3.13%, excluding purchased loan accretion x Purchased loan accretion totaled $4.6 million and contributed 7 bps to the margin, down 1 bp from 8 bps in 4Q23 x Approximately $6.8 billion, or 37% of total loans, are floating or reprice or mature within one year Net Interest Revenue / Margin (1) Yields & Costs 5.68% 5.85% 6.02% 6.15% 6.24% 3.61% 3.37% 3.24% 3.19% 3.20% 2.51% 2.63% 2.88% 2.91% 3.04% 1.89% 2.50% 2.94% 3.16% 3.23% 1Q23 2Q23 3Q23 4Q23 1Q24 Loan Yield NIM Securities Yield Cost of IBL (1) Net interest margin is calculated on a fully - taxable equivalent basis (2) Core net interest margin excludes purchased loan accretion (2) (1) 10 $ in millions
$8.7 $9.8 $10.3 $9.6 $9.3 $4.5 $6.6 $6.2 $2.0 $7.5 $5.7 $5.6 $6.5 $6.0 $6.3 $1.9 $2.3 $2.7 $2.2 $1.5 $9.4 $12.1 $6.3 $8.8 $12.6 1Q23 2Q23 3Q23 4Q23 1Q24 Service Charges Mortgage Brokerage / Wealth Mgmt Loan sale gains Other $32.0 $28.6 Linked Quarter x Noninterest income was up $62.7 million to $39.6 million, primarily due to the absence of the $51.7 million loss from the bond portfolio restructuring transaction in 4Q23 • Of the $5.6 million mortgage fee increase, $3.8 million came from a positive swing in the MSR mark, with the remaining increase attributable to higher locks and a greater proportion of saleable product • $700,000 decrease in gains on SBA and Navitas loan sales, which was driven by lower SBA loans sold offset by a higher gain on sale percentage Year - over - Year x Non - interest income was up $9.4 million from 1Q24, up $7.0 million on an operating basis • Mortgage fees were up $3.0 million with $1.7 million of the increase due to a favorable mark on the MSR asset ▪ Mortgage rate locks of $260 million in 1Q24 compared to $335 million in 1Q23 $36.4 $37.2 11 Noninterest Income - Operating (1) See non - GAAP reconciliation table slides in the exhibits to this Presentation for a reconciliation of operating performance meas ures to GAAP performance (1) $30.2 $ in millions (1)
$139.8 $132.4 $144.5 $154.6 $145.0 $131.2 $128.8 $135.3 $138.8 $140.4 1Q23 2Q23 3Q23 4Q23 1Q24 GAAP Operating Noninterest Expense x The GAAP efficiency ratio decreased compared to last quarter mostly due to lower merger - related and other charges and lower FDIC deposit insurance charges x On an operating basis, the efficiency ratio decreased 40 bps mostly due to higher noninterest income Efficiency Ratio % Noninterest Expense $ 57.2% 55.7% 61.3% 66.3% 60.5% 53.7% 54.2% 57.4% 59.6% 59.2% 63.4% 1Q23 2Q23 3Q23 4Q23 1Q24 GAAP Operating KRX Peer Median x Noninterest expense decreased $9.6 million compared to the fourth quarter mostly due to a smaller FDIC special assessment x Noninterest expense - operating increased by $1.6 million, or 1.2%, quarter - over - quarter mostly driven by lower deferred loan origination costs, higher equity compensation expense and FICA taxes 12 (1) See non - GAAP reconciliation table slides in the exhibits to this Presentation for a reconciliation of operating performance meas ures to GAAP performance (1) $ in millions
x 1Q24 net charge - offs of $12.9 million or 0.28% of average loans annualized x Nonperforming assets increased $14.4 million during the quarter and were 0.58% of total loans, an increase of 7 bps from 4Q23 x Past due loans decreased $1.8 million during the quarter and were 0.28% of total loans, a decrease of 1 bp from 4Q23 x Higher risk loans, defined as special mention plus substandard accruing, increased 0.20% from 4Q23 to 2.9% but were down 1 bp YOY Credit Quality Net Charge - Offs as % of Average Loans Nonperforming Assets & Past Due Loans as a % of Total Loans 0.55% 0.29% 0.43% 0.60% 0.50% 0.51% 0.58% 0.18% 0.06% 0.18% 0.31% 0.18% 0.21% 0.29% 0.28% 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 1Q24 NPAs (%) Past Dues (%) 2.6% 2.6% 1.6% 1.4% 1.2% 1.4% 1.1% 1.6% 1.5% 1.4% 1.3% 1.6% 1.5% 1.5% 1.6% 1.3% 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 1Q24 Special Mention (%) Substandard Accruing(%) Special Mention & Substandard Accruing Loans as a % of Total Loans 13 0.17% 0.00% 0.07% 0.17% 0.20% 0.59% 0.22% 0.28% 0.12% - 0.03% 0.04% 0.10% 0.15% 0.49% 0.05% 0.16% 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 1Q24 UCBI UCBI Excl. Navitas 0.28%
Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk - Forward Allowance for Credit Losses (ACL) Note: ACL includes the reserve for unfunded commitments x The 1Q24 reserve was flat from 4Q23 x Reserve for unfunded commitments decreased $2.9 million from 4Q23 due to lower commercial and residential construction commitments x ACL levels remain at 1.22% of loans, up from 1.16% in 1Q23 $198 $212 $220 $224 $224 1.16% 1.22% 1.21% 1.22% 1.22% 0.65% 0.75% 0.85% 0.95% 1.05% 1.15% 1.25% 1.35% 1.45% 1.55% $30 $50 $70 $90 $110 $130 $150 $170 $190 $210 1Q23 2Q23 3Q23 4Q23 1Q24 ACL - Allowance for Credit Losses $ ACL - Allowance for Credit Losses / Loans % $224,128 $224,119 ( $213 ) ( $2,878 ) ( $12,908 ) ( $341 ) $16,331 4Q23 ACL Loan Growth/ Mix Changes Unfunded Commitments NCOs Specific Reserve Model Impact/ NCO re-fill 1Q24 ACL 14 $ in millions $ in thousands
Member FDIC. © 2024 United Community Bank | ucbi.com 1Q24 INVESTOR PRESENTATION Exhibits
$20.7 $22.3 $22.1 $23.3 $23.3 $1.3 $0.8 1Q23 2Q23 3Q23 4Q23 1Q24 UCBI Acquisitions Deposit Trends x Deposits are granular with a $34 thousand average account size and are diverse by industry and geography x Business deposits of $8.7 billion and personal deposits of $11.4 billion in 1Q24 • The remaining $3.2 billion of deposits are predominantly comprised of public funds Deposit Mix Shift Customer Deposit Granularity $19,417 $19,613 $19,956 $20,594 $20,304 $72,650 $75,033 $75,865 $76,419 $77,546 1Q23 2Q23 3Q23 4Q23 1Q24 Personal Deposits Avg Acct Size Business Deposits Avg Acct Size 34% 31% 30% 28% 27% 66% 69% 70% 72% 73% 1Q23 2Q23 3Q23 4Q23 1Q24 Noninterest-bearing Deposits Interest-bearing Deposits 16 1Q24 Total Deposits $ in billions $ in actual
Average Deposit Costs 17 Average Balance Average Rate Average Balance Average Rate Average Balance Average Rate Average Balance Average Rate Average Balance Average Rate DDA $7.7 N/A $7.1 N/A $6.9 N/A $6.7 N/A $6.4 N/A NOW $4.5 1.59% $4.9 2.27% $5.3 2.67% $6.0 2.96% $6.1 3.06% MMDA $5.2 1.95% $5.2 2.58% $5.6 3.31% $5.8 3.49% $5.9 3.46% Savings $1.4 0.15% $1.3 0.22% $1.3 0.26% $1.2 0.24% $1.2 0.24% Time $2.3 2.13% $3.0 3.03% $3.5 3.55% $3.6 3.86% $3.6 4.02% Total Interest-bearing $13.7 1.71% $14.8 2.42% $15.9 2.91% $16.7 3.14% $16.8 3.21% Total deposits $21.4 1.10% $21.9 1.64% $22.8 2.03% $23.2 2.24% $23.2 2.32% 1Q23 2Q23 1Q24 $ in billions; rates annualized 3Q23 4Q23
Navitas Portfolio Net Charge - Offs & Weighted Average FICO Scores x Navitas represents 8% of total loans x Navitas ACL / Loans of 2.59% x Navitas 1Q24 NCOs of 1.66% annualized or $6.4 million x Of the $6.4 million of losses, $2.4 million came from the Long Haul Trucking segment as the book shrank to just $38 million x Excluding Long Haul Trucking losses, Navitas’ losses were 1.06% of total Navitas loans Navitas Performance $1,083 $1,148 $1,211 $1,281 $1,374 $1,447 $1,510 $1,534 $1,543 $1,544 8.89% 8.85% 8.80% 8.79% 8.88% 8.99% 9.12% 9.25% 9.30% 9.43% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Navitas Loans $ Portfolio Yield % 18 0.74% 0.85% 0.32% 0.10% 0.31% 0.36% 0.50% 0.93% 0.69% 1.62% 2.05% 1.66% 745 748 750 750 751 751 752 752 754 755 756 757 1 101 201 301 401 501 601 701 801 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 NCOs % - Navitas Weighted Average FICO - Total Portfolio $ in millions
1% 20% 25% 49% 6% Selected Portfolios – Office Note: Progress acquisition contributed $74 million of the increase in office loans outstanding from 4Q22 to 1Q23; Reclass of FNB SM office loans contributed $70 million of the increase in office loans outstanding from 3Q23 to 4Q23 19 Outstanding $818 million % of Total Loans 4.4% Average Loan Size $1.4 million Median Loan Size $582 thousand Largest Loan Size $12.3 million 30 + Days Past Due $220 thousand Special Mention $17.8 million Substandard Accruing $2.1 million Nonaccruals $693 thousand 1Q24 Portfolio Characteristics Investment CRE – Office $666 $683 $664 $661 $710 $722 $711 $785 $818 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Substandard Special Mention Pass Investment CRE – Office Maturities by Year $ in millions Rate Structure 2024 2025 2026 2027 2028 2029 + Grand Total Fixed $33.3 $58.3 $67.6 $69.0 $59.5 $141.6 $429.3 Floating $32.7 $46.9 $51.7 $20.3 $42.5 $194.1 $388.3 Total $66.0 $105.3 $119.3 $89.3 $102.0 $335.7 $817.6 $ in millions
1% 20% 25% 49% 6% Selected Portfolios – Multi - Family 20 Outstanding $832 million Commitment $1.2 billion % of Total Loans 4.5% Largest Loan Size Commitment $34.5 million 30 + Days Past Due $0 Special Mention $0 Substandard Accruing $2.5 million Nonaccruals $0 1Q24 Portfolio Characteristics Investment CRE – Multi - family $ in millions Investment CRE – Multi - family Maturities by Year Rate Structure 2024 2025 2026 2027 2028 2029 + Grand Total Fixed $29.7 $27.7 $34.0 $49.2 $33.4 $47.2 $221.1 Floating $73.3 $204.9 $152.0 $112.0 $16.9 $51.7 $610.8 Total $103.0 $232.6 $185.9 $161.3 $50.3 $98.9 $831.9 $324 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Substandard $ Special Mention $ Pass $ $ in millions $358 $394 $465 $572 $625 $742 $783 $832
1% 20% 25% 49% 6% Selected Portfolios – Senior Care $73 $65 $60 $79 $106 $106 $102 $113 $105 $144 $135 $124 $111 $91 $108 $102 $87 $97 $518 $465 $442 $408 $410 $394 $388 $382 $369 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Substandard $ Special Mention $ Pass $ 21 Outstanding $369 million % of Total Loans 2.0% Average Loan Size $6.8 million Median Loan Size $5.7 million Largest Loan Size $21.3 million 30 + Days Past Due $0 Special Mention $97.0 million Substandard Accruing $76.3 million Nonaccruals $28.5 million $ in millions 1Q24 Portfolio Characteristics Investment CRE – Senior Care Investment CRE – Senior Care Maturities by Year Rate Structure 2024 2025 2026 2027 2028 2029 + Grand Total Fixed $23.1 $22.3 $34.1 $1.1 $0.0 $23.4 $104.0 Floating $151.9 $61.9 $28.5 $5.1 $9.0 $8.2 $264.6 Total $175.0 $84.3 $62.6 $6.2 $9.0 $31.6 $368.6 $ in millions
x Rate locks were $260 million compared to $223 million in 4Q23 x 92% of locked loans were fixed rate mortgages, which were either sold in 1Q24 or are contemplated to be sold once closed x Sold $126 million loans in 1Q24, up $12 million from $114 million sold in 4Q23 x The increase in the gain on sale margin was driven by a mix change towards higher margin FHA loans, as well as the cessation of certain customer incentives from last quarter Mortgage Locks & Sales Mortgage Locks - Purchase vs. Refinance Mortgage Activity Trends $335 $305 $304 $223 $260 $79 $131 $108 $114 $126 2.9% 2.8% 2.9% 2.4% 2.9% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $50 $100 $150 $200 $250 $300 $350 $400 1Q23 2Q23 3Q23 4Q23 1Q24 Mortgage locks $ Loans sold $ Gain on sale % 87% 86% 87% 87% 80% 13% 14% 13% 13% 20% 1Q23 2Q23 3Q23 4Q23 1Q24 Purchase Refinance 22 x Purchase volume remained the primary driver of originations at 80% of the total $ in millions
(1) Includes MSAs with a population greater than 1,000,000 (2) Includes MSAs with a population between 500,000 and 1,000,000 Footprint Focused on High - Growth MSAs in Southeast 23 21.9% 8.8% 5.4% 5.3% 3.7% 3.2% 2.8% 2.3% 2.1% 2.0% Atlanta, GA Greenville, SC Nashville, TN Miami, FL Raleigh, NC Gainesville, GA Knoxville, TN Orlando, FL Charlotte, NC Myrtle Beach, SC Top 10 MSAs - % of Total Deposits UCBI's % of Total Deposits ’23 – ’28 Proj. Pop. Growth % ’23 – ’28 Proj. HHI. Growth % 1) Raleigh, NC 3.73% 7.40 11.77 2) Jacksonville, FL 0.52% 6.89 14.35 3) Orlando, FL 2.31% 6.35 10.63 4) Nashville, TN 5.43% 6.12 12.44 5) Charlotte, NC 2.07% 5.80 14.66 6) Tampa, FL 0.12% 5.19 11.68 7) Atlanta, GA 21.85% 4.68 14.16 8) Richmond, VA -- 3.88 12.78 9) Washington, DC -- 2.72 11.66 10) Virginia Beach, VA -- 2.25 14.75 11) Miami, FL 5.30% 1.95 10.76 12) Birmingham, AL 0.73% 1.60 10.87 Fastest Growing Major Southeast MSAs (1) UCBI's % of Total Deposits ’23 – ’28 Proj. Pop. Growth % ’23 – ’28 Proj. HHI. Growth % 1) Myrtle Beach, SC 2.04% 9.38 12.44 2) Winter Haven, FL -- 9.37 9.14 3) Fort Myers, FL -- 8.93 11.31 4) Sarasota, Fl 0.18% 7.73 12.11 5) Port St. Lucie, FL 0.12% 7.53 11.74 6) Fayetteville, AR -- 6.99 10.18 7) Daytona Beach, FL -- 6.56 10.27 8) Charleston, SC 1.10% 6.32 14.65 9) Huntsville, AL 1.71% 5.93 16.50 10) Melbourne, FL 0.11% 5.29 11.06 11) Greenville, SC 8.81% 4.74 12.63 12) Pensacola, FL -- 4.62 9.92 13) Durham, NC -- 4.52 13.77 14) Knoxville, TN 2.75% 4.10 11.62 15) Columbia, SC 0.21% 3.59 13.59 Fastest Growing Mid-Sized Southeast MSAs (2) UCBI MSA Presence
Non - GAAP Reconciliation Tables 24 1Q23 2Q23 3Q23 4Q23 1Q24 Noninterest Income Noninterest income - GAAP 30,209$ 36,387$ 31,977$ (23,090)$ 39,587$ Bond portfolio restructuring loss - - - 51,689 - Lease termination gain - - - - (2,400) Noninterest income - operating 30,209$ 36,387$ 31,977$ 28,599$ 37,187$ Expenses Expenses - GAAP 139,805$ 132,407$ 144,474$ 154,587$ 145,002$ Merger-related and other charges (8,631) (3,645) (9,168) (5,766) (2,087) FDIC special assessment - - - (9,995) (2,500) Expenses - operating 131,174$ 128,762$ 135,306$ 138,826$ 140,415$ Diluted Earnings Per Share Diluted earnings per share - GAAP 0.52$ 0.53$ 0.39$ 0.11$ 0.51$ Merger-related and other charges 0.06 0.02 0.06 0.04 0.01 Bond portfolio restructuring loss - - - 0.32 - FDIC special assessment - - - 0.06 0.02 Lease termination gain - - - - (0.02) Diluted earnings per share - operating 0.58$ 0.55$ 0.45$ 0.53$ 0.52$ Book Value Per Share Book Value per share - GAAP 25.76$ 25.98$ 25.87$ 26.52$ 26.83$ Effect of goodwill and other intangibles (8.17) (8.15) (8.17) (8.13) (8.12) Tangible book value per share 17.59$ 17.83$ 17.70$ 18.39$ 18.71$ Return on Tangible Common Equity Return on common equity - GAAP 7.34 % 7.47 % 5.32 % 1.44 % 7.14 % Merger-related and other charges 0.81 0.35 0.82 0.50 0.19 Bond portfolio restructuring loss - - - 4.47 - FDIC special assessment - - - 0.86 0.23 Lease termination gain - - - - (0.22) Return on common equity - operating 8.15 7.82 6.14 7.27 7.34 Effect of goodwill and intangibles 3.48 3.53 2.89 3.31 3.34 Return on tangible common equity - operating 11.63 % 11.35 % 9.03 % 10.58 % 10.68 % $ in thousands, except per share data
Non - GAAP Reconciliation Tables 25 1Q23 2Q23 3Q23 4Q23 1Q24 Return on Assets Return on assets - GAAP 0.95 % 0.95 % 0.68 % 0.18 % 0.90 % Merger-related and other charges - - - 0.06 0.03 Bond portfolio restructuring loss - - - 0.57 - FDIC special assessment 0.11 0.05 0.11 0.11 0.03 Lease termination gain - - - - (0.03) Return on assets - operating 1.06 % 1.00 % 0.79 % 0.92 % 0.93 % Return on Assets to Return on Assets - Pre-tax Pre-provision Return on assets - GAAP 0.95 % 0.95 % 0.68 % 0.18 % 0.90 % Income tax expense (benefit) 0.29 0.29 0.18 (0.04) 0.27 (Release of) provision for credit losses 0.34 0.35 0.45 0.21 0.19 Return on assets - pre-tax, pre-provision 1.58 1.59 1.31 0.35 1.36 Merger-related and other charges 0.13 0.06 0.13 0.08 0.04 Bond portfolio restructuring loss - - - 0.75 - FDIC special assessment - - - 0.15 0.04 Lease termination gain - - - - (0.04) Return on assets - operating 1.71 % 1.65 % 1.44 % 1.33 % 1.40 % Efficiency Ratio Efficiency ratio - GAAP 57.20 % 55.71 % 61.32 % 66.33 % 60.47 % Merger-related and other charges (3.53) (1.54) (3.89) (2.47) (0.87) FDIC special assessment - - - (4.29) (1.05) Lease termination gain - - - 0.00 0.60 Return on assets - operating 53.67 % 54.17 % 57.43 % 59.57 % 59.15 % Tangible Common Equity to Tangible Assets Equity to assets ratio - GAAP 11.90 % 11.89 % 11.85 % 11.95 % 12.06 % Effect of goodwill and intangibles (3.36) (3.31) (3.33) (3.27) (3.25) Effect of preferred equity (0.37) (0.37) (0.34) (0.32) (0.32) Tangible common equity to tangible assets ratio 8.17 % 8.21 % 8.18 % 8.36 % 8.49 % $ in thousands, except per share data
Glossary ACL – Allowance for Credit Losses MLO – Mortgage Loan Office ALLL – Allowance for Loan Losses MMDA – Money Market Deposit Account AOCI – Accumulated Other Comprehensive Income (Loss) 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 NOW – Negotiable Order of Withdrawal CET1 – Common Equity Tier 1 Capital NPA – Non-Performing Asset CRE – Commercial Real Estate NSF – Non-sufficient Funds CSP – Customer Service Profiles OO RE – Owner Occupied Commercial Real Estate DDA – Demand Deposit Account PCD – Loans Purchased with Credit Deterioration EOP – End of Period PPP – Paycheck Protection Program EPS – Earnings Per Share PTPP – Pre-Tax, Pre-Provision Earnings FHA – Federal Housing Administration 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 IBL – Interest-bearing liabilities TCE – Tangible Common Equity ICS – Insured Cash Sweep USDA – United States Department of Agriculture KRX – KBW Nasdaq Regional Banking Index VA – Veterans Affairs LPO – Loan Production Office YOY – Year over Year 26