• United Community Banks, Inc. Reports First Quarter Results

    Source: Nasdaq GlobeNewswire / 19 Apr 2022 15:30:01   America/Chicago

    GREENVILLE, S.C., April 19, 2022 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the first quarter was $48.0 million and pre-tax, pre-provision income was $83.5 million. Diluted earnings per share of $0.43 for the quarter represented a decrease of $0.39 or 48%, from the first quarter of 2021, and represented a decrease of $0.12 or 22% from the fourth quarter of 2021. The quarter was highlighted by strong 9% annualized core loan growth, 7% annualized deposit growth, 16 basis points of net interest margin expansion, a reserve build to 1.02% of loans and an improvement in the efficiency ratio to 57.4%, or 53.1% on an operating basis, which excludes the effect of merger-related and other charges.

    A primary driver of the reduced earnings on a GAAP basis relative to prior quarters was a higher credit loss provision, as the acquisition of Reliant in the current quarter necessitated the establishment of an allowance for credit losses, often referred to as a “double dip” under CECL, as well as the wind down of the PPP program that resulted in significantly less fee accretion, which was down $8.7 million year over year. Excluding these items, our operating trends continue to improve with strong pre-tax, pre-provision income for the quarter of $83.5 million which was $17.9 million, or 27% higher, than the fourth quarter of 2021, and $1.9 million, or 2% greater, than the first quarter of 2021. 

    United’s first quarter return on assets (ROA) was 0.78% and return on common equity was 6.80%. On an operating basis, United’s ROA was 0.89% and its return on tangible common equity was 11.0%. On a pre-tax, pre-provision basis, operating ROA was 1.52% for the quarter.  

    Total loans increased by $2.6 billion during the quarter including $2.3 billion of loans acquired in the Reliant acquisition. Excluding the effect of PPP and the acquired Reliant loans, core organic loan growth was 9% annualized. Excluding deposits received from the Reliant acquisition, deposits grew by 7% annualized. United’s cost of deposits was flat at 0.06%.

    Chairman and CEO Lynn Harton stated, “Core performance measures continue to be strong for the company. Organic loan and deposit growth were excellent. Mortgage production remained strong and comparable to fourth quarter levels and our SBA business also performed well in the quarter.” Harton continued, “From a strategic perspective, we are excited to have completed the acquisition of Reliant on January 1 and are proud to welcome their outstanding team of great bankers to the United franchise. Nashville is a dynamic market and we look forward to the growth and opportunities it will bring for years to come.”

    Mr. Harton continued “We have a very positive outlook for 2022 for United, supported by strong business growth across our markets and a balance sheet that is well-positioned for increasing interest rates. Additionally, we believe we have a balanced business mix with a focus on credit quality and risk management that will sustain our performance through economic and business cycles.”

    Harton concluded “We are proud to announce we have once again ranked Highest in Customer Satisfaction in Retail Banking in the Southeast in 2022 according to J.D. Power. Our customers have given us this recognition for eight of the last nine years, and the third consecutive year. Service is at the core of our culture and the main focus and mission of our outstanding employees. Congratulations to each of them for this outstanding recognition!”

    First Quarter 2022 Financial Highlights:

    • Net income of $48.0 million and pre-tax, pre-provision income of $83.5 million
    • EPS decreased by 48% compared to last year on a GAAP basis and 40% on an operating basis; compared to fourth quarter 2021, EPS decreased by 22% on both a GAAP and an operating basis
    • Return on assets of 0.78%, or 0.89% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.37%, or 1.52% on an operating basis
    • Return on common equity of 6.80%
    • Return on tangible common equity of 11.00% on an operating basis
    • A provision for credit losses of $23.1 million, $18.3 million of which was attributable to the establishment of an initial allowance for credit losses for acquired Reliant loans, increased the allowance for credit losses to 1.02% of loans from 0.97% in the fourth quarter
    • Net charge-offs of $2.98 million, or 8 basis points as a percentage of average loans, up 7 basis points from the fourth quarter
    • Loan production of $1.3 billion, resulting in annualized core loan growth of 9%, for the quarter, excluding the sale of $45.6 million in Reliant loans classified as held for sale on the acquisition date
    • Core transaction deposits, excluding Reliant, were up $478 million, which represents a 13% annualized growth rate for the quarter
    • Net interest margin of 2.97% was up 16 basis points from the fourth quarter, mainly due to the impact of the Reliant acquisition and the deployment of cash into securities
    • Mortgage closings of $462 million and mortgage rate locks of $757 million, compared to $666 million and $993 million, respectively, a year ago
    • Noninterest income was up $1.8 million on a linked quarter basis, primarily driven by a $6.4 million increase in the MSR valuation in the first quarter compared with a $775,000 increase in the fourth quarter
    • Noninterest expenses increased by $10.1 million compared to the fourth quarter, mostly due to an increase in salaries and employee benefits related to the acquisition of Reliant
    • Efficiency ratio of 57.4%, or 53.1% on an operating basis
    • Nonperforming assets of 0.17% of total assets, an increase of 0.01% from December 31, 2021
    • Quarterly common shareholder dividend of $0.21 per share declared during the quarter, an increase of 11% year-over-year

    Conference Call

    United will hold a conference call on Wednesday, April 20, 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/10165183/f22437931b. Those without internet access or who are 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.

    UNITED COMMUNITY BANKS, INC.            
    Selected Financial Information            
    (in thousands, except per share data)            
       2022   2021  First
    Quarter

    2022 -
    2021

    Change
      First
    Quarter
     Fourth
    Quarter
     Third
    Quarter
     Second
    Quarter
     First
    Quarter
     
    INCOME SUMMARY            
    Interest revenue $171,059  $143,768  $147,675  $145,809  $141,542   
    Interest expense  7,267   6,213   6,636   7,433   9,478   
    Net interest revenue  163,792   137,555   141,039   138,376   132,064  24%
    Provision for (release of) credit losses  23,086   (647)  (11,034)  (13,588)  (12,281)  
    Noninterest income  38,973   37,177   40,095   35,841   44,705  (13)
    Total revenue  179,679   175,379   192,168   187,805   189,050  (5)
    Noninterest expenses  119,275   109,156   96,749   95,540   95,194  25 
    Income before income tax expense  60,404   66,223   95,419   92,265   93,856  (36)
    Income tax expense  12,385   14,204   21,603   22,005   20,150  (39)
    Net income  48,019   52,019   73,816   70,260   73,706  (35)
    Merger-related and other charges  9,016   9,912   1,437   1,078   1,543   
    Income tax benefit of merger-related and other charges  (1,963)  (2,265)  (328)  (246)  (335)  
    Net income - operating (1) $55,072  $59,666  $74,925  $71,092  $74,914  (26)
    Pre-tax pre-provision income (5) $83,490  $65,576  $84,385  $78,677  $81,575  2 
    PERFORMANCE MEASURES            
    Per common share:            
    Diluted net income - GAAP $0.43  $0.55  $0.82  $0.78  $0.82  (48)
    Diluted net income - operating (1)  0.50   0.64   0.83   0.79   0.83  (40)
    Cash dividends declared  0.21   0.20   0.20   0.19   0.19  11 
    Book value  24.38   23.63   23.25   22.81   22.15  10 
    Tangible book value (3)  17.08   18.42   18.68   18.49   17.83  (4)
    Key performance ratios:            
    Return on common equity - GAAP (2)(4)  6.80%  9.32%  14.26%  14.08%  15.37%  
    Return on common equity - operating (1)(2)(4)  7.83   10.74   14.48   14.25   15.63   
    Return on tangible common equity - operating (1)(2)(3)(4)  11.00   13.93   18.23   17.81   19.68   
    Return on assets - GAAP (4)  0.78   0.96   1.48   1.46   1.62   
    Return on assets - operating (1)(4)  0.89   1.10   1.50   1.48   1.65   
    Return on assets - pre-tax pre-provision (4)(5)  1.37   1.21   1.70   1.64   1.80   
    Return on assets - pre-tax pre-provision, excluding
    merger- related and other charges (1)(4)(5)
      1.52   1.40   1.73   1.67   1.83   
    Net interest margin (fully taxable equivalent) (4)  2.97   2.81   3.12   3.19   3.22   
    Efficiency ratio - GAAP  57.43   62.12   53.11   54.53   53.55   
    Efficiency ratio - operating (1)  53.09   56.48   52.33   53.92   52.68   
    Equity to total assets  11.06   10.61   10.89   11.04   10.95   
    Tangible common equity to tangible assets (3)  7.72   8.09   8.53   8.71   8.57   
    ASSET QUALITY            
    Nonperforming assets ("NPAs")  40,816   32,855   45,335   46,347   56,496  (28)
    Allowance for credit losses - loans  132,805   102,532   99,620   111,616   126,866  5 
    Allowance for credit losses - total  146,369   113,524   110,875   122,460   135,592   
    Net charge-offs  2,978   248   551   (456)  (305)  
    Allowance for credit losses - loans to loans  0.93%  0.87%  0.89%  0.98%  1.09%  
    Allowance for credit losses - total to loans  1.02   0.97   0.99   1.08   1.16   
    Net charge-offs to average loans (4)  0.08   0.01   0.02   (0.02)  (0.01)  
    NPAs to total assets  0.17   0.16   0.23   0.25   0.30   
    AT PERIOD END ($ in millions)            
    Loans $14,316  $11,760  $11,191  $11,391  $11,679  23 
    Investment securities  6,410   5,653   5,335   4,928   4,332  48 
    Total assets  24,374   20,947   19,481   18,896   18,557  31 
    Deposits  21,056   18,241   16,865   16,328   15,993  32 
    Shareholders’ equity  2,695   2,222   2,122   2,086   2,031  33 
    Common shares outstanding (thousands)  106,025   89,350   86,559   86,665   86,777  22 

    (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.

    UNITED COMMUNITY BANKS, INC.          
    Non-GAAP Performance Measures Reconciliation
    Selected Financial Information          
    (in thousands, except per share data)          
       2022   2021 
      First
    Quarter
     Fourth
    Quarter
     Third
    Quarter
     Second
    Quarter
     First
    Quarter
               
    Noninterest expense reconciliation          
    Noninterest expenses (GAAP) $119,275  $109,156  $96,749  $95,540  $95,194 
    Merger-related and other charges  (9,016)  (9,912)  (1,437)  (1,078)  (1,543)
    Noninterest expenses - operating $110,259  $99,244  $95,312  $94,462  $93,651 
               
    Net income reconciliation          
    Net income (GAAP) $48,019  $52,019  $73,816  $70,260  $73,706 
    Merger-related and other charges  9,016   9,912   1,437   1,078   1,543 
    Income tax benefit of merger-related and other charges  (1,963)  (2,265)  (328)  (246)  (335)
    Net income - operating $55,072  $59,666  $74,925  $71,092  $74,914 
               
    Net income to pre-tax pre-provision income reconciliation          
    Net income (GAAP) $48,019  $52,019  $73,816  $70,260  $73,706 
    Income tax expense  12,385   14,204   21,603   22,005   20,150 
    Provision for (release of) credit losses  23,086   (647)  (11,034)  (13,588)  (12,281)
    Pre-tax pre-provision income $83,490  $65,576  $84,385  $78,677  $81,575 
               
    Diluted income per common share reconciliation          
    Diluted income per common share (GAAP) $0.43  $0.55  $0.82  $0.78  $0.82 
    Merger-related and other charges, net of tax  0.07   0.09   0.01   0.01   0.01 
    Diluted income per common share - operating $0.50  $0.64  $0.83  $0.79  $0.83 
               
    Book value per common share reconciliation          
    Book value per common share (GAAP) $24.38  $23.63  $23.25  $22.81  $22.15 
    Effect of goodwill and other intangibles  (7.30)  (5.21)  (4.57)  (4.32)  (4.32)
    Tangible book value per common share $17.08  $18.42  $18.68  $18.49  $17.83 
               
    Return on tangible common equity reconciliation          
    Return on common equity (GAAP)  6.80%  9.32%  14.26%  14.08%  15.37%
    Merger-related and other charges, net of tax  1.03   1.42   0.22   0.17   0.26 
    Return on common equity - operating  7.83   10.74   14.48   14.25   15.63 
    Effect of goodwill and other intangibles  3.17   3.19   3.75   3.56   4.05 
    Return on tangible common equity - operating  11.00%  13.93%  18.23%  17.81%  19.68%
               
    Return on assets reconciliation          
    Return on assets (GAAP)  0.78%  0.96%  1.48%  1.46%  1.62%
    Merger-related and other charges, net of tax  0.11   0.14   0.02   0.02   0.03 
    Return on assets - operating  0.89%  1.10%  1.50%  1.48%  1.65%
               
    Return on assets to return on assets- pre-tax pre-provision reconciliation          
    Return on assets (GAAP)  0.78%  0.96%  1.48%  1.46%  1.62%
    Income tax expense  0.20   0.26   0.45   0.47   0.46 
    (Release of) provision for credit losses  0.39   (0.01)  (0.23)  (0.29)  (0.28)
    Return on assets - pre-tax, pre-provision  1.37   1.21   1.70   1.64   1.80 
    Merger-related and other charges  0.15   0.19   0.03   0.03   0.03 
    Return on assets - pre-tax pre-provision, excluding merger-related and other charges  1.52%  1.40%  1.73%  1.67%  1.83%
               
    Efficiency ratio reconciliation          
    Efficiency ratio (GAAP)  57.43%  62.12%  53.11%  54.53%  53.55%
    Merger-related and other charges  (4.34)  (5.64)  (0.78)  (0.61)  (0.87)
    Efficiency ratio - operating  53.09%  56.48%  52.33%  53.92%  52.68%
               
    Tangible common equity to tangible assets reconciliation          
    Equity to total assets (GAAP)  11.06%  10.61%  10.89%  11.04%  10.95%
    Effect of goodwill and other intangibles  (2.94)  (2.06)  (1.87)  (1.82)  (1.86)
    Effect of preferred equity  (0.40)  (0.46)  (0.49)  (0.51)  (0.52)
    Tangible common equity to tangible assets  7.72%  8.09%  8.53%  8.71%  8.57%
               
    Allowance for credit losses - loans to loans reconciliation          
    Allowance for credit losses - loans to loans (GAAP)  1.02%  0.97%  0.99%  1.08%  1.16%
    Effect of PPP loans        0.01   0.04   0.10 
    Allowance for credit losses - loans to loans, excluding PPP loans  1.02%  0.97%  1.00%  1.12%  1.26%


    UNITED COMMUNITY BANKS, INC.            
    Financial Highlights            
    Loan Portfolio Composition at Period-End            
      2022  2021 Linked
    Quarter
    Change

     Year over
    Year
    Change

    (in millions)First
    Quarter
     Fourth
    Quarter
     Third
    Quarter
     Second
    Quarter
     First
    Quarter
      
    LOANS BY CATEGORY             
    Owner occupied commercial RE$2,638 $2,322 $2,149 $2,149 $2,107 $316  $531 
    Income producing commercial RE 3,328  2,601  2,542  2,550  2,599  727   729 
    Commercial & industrial 2,302  1,822  1,729  1,762  1,760  480   542 
    Paycheck protection program 34  88  150  472  883  (54)  (849)
    Commercial construction 1,482  1,015  947  927  960  467   522 
    Equipment financing 1,148  1,083  1,017  969  913  65   235 
    Total commercial 10,932  8,931  8,534  8,829  9,222  2,001   1,710 
    Residential mortgage 1,826  1,638  1,533  1,473  1,362  188   464 
    Home equity lines of credit 778  694  661  661  679  84   99 
    Residential construction 368  359  321  289  272  9   96 
    Manufactured housing 269          269   269 
    Consumer 143  138  142  139  144  5   (1)
    Total loans$14,316 $11,760 $11,191 $11,391 $11,679 $2,556  $2,637 
                  
    LOANS BY MARKET             
    Georgia$3,879 $3,778 $3,732 $3,729 $3,754 $101  $125 
    South Carolina 2,323  2,235  2,145  2,107  1,997  88   326 
    North Carolina 1,879  1,895  1,427  1,374  1,326  (16)  553 
    Tennessee 2,661  373  383  394  398  2,288   2,263 
    Florida 1,208  1,148  1,113  1,141  1,160  60   48 
    Commercial Banking Solutions 2,366  2,331  2,391  2,646  3,044  35   (678)
    Total loans$14,316 $11,760 $11,191 $11,391 $11,679 $2,556  $2,637 


    UNITED COMMUNITY BANKS, INC.            
    Financial Highlights            
    Credit Quality            
    (in thousands)            
       2022  2021      
      First
    Quarter
     Fourth
    Quarter
     Third
    Quarter
          
    NONACCRUAL LOANS            
    Owner occupied RE $4,590 $2,714 $4,945      
    Income producing RE  7,220  7,588  13,462      
    Commercial & industrial  6,227  5,429  8,507      
    Commercial construction  401  343  1,202      
    Equipment financing  2,540  1,741  1,845      
    Total commercial  20,978  17,815  29,961      
    Residential mortgage  13,024  13,313  13,222      
    Home equity lines of credit  1,183  1,212  1,364      
    Residential construction  212  420  260      
    Manufactured housing  2,507          
    Consumer  40  52  116      
    Total nonaccrual loans held for investment  37,944  32,812  44,923      
    Nonaccrual loans held for sale  2,033          
    OREO and repossessed assets  839  43  412      
    Total NPAs $40,816 $32,855 $45,335      


       2022   2021 
      First Quarter Fourth Quarter Third Quarter
    (in thousands) Net Charge-
    Offs
     Net Charge-
    Offs to
    Average
    Loans
    (1)
     Net Charge-
    Offs
     Net Charge-
    Offs to
    Average
    Loans
    (1)
     Net Charge-
    Offs
     Net Charge-
    Offs to
    Average
    Loans
    (1)
    NET CHARGE-OFFS BY CATEGORY            
    Owner occupied RE $(45) (0.01)%  $(255) (0.04)%  $(93) (0.02)% 
    Income producing RE  (290) (0.04)  (98) (0.01)  45  0.01 
    Commercial & industrial  2,929  0.51   339  0.07   (91) (0.02)
    Commercial construction  (373) (0.10)  (354) (0.14)  (123) (0.05)
    Equipment financing  267  0.10   781  0.29   512  0.21 
    Total commercial  2,488  0.09   413  0.02   250  0.01 
    Residential mortgage  (97) (0.02)  (169) (0.04)  51  0.01 
    Home equity lines of credit  (81) (0.04)  (118) (0.07)  (102) (0.06)
    Residential construction  (23) (0.03)  (17) (0.02)  (37) (0.05)
    Manufactured housing  164  0.25           
    Consumer  527  1.48   139  0.39   389  1.11 
    Total $2,978  0.08  $248  0.01  $551  0.02 
                 
    (1) Annualized.            


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


    (in thousands, except share and per share data) March 31,
    2022
     December 31,
    2021
    ASSETS    
    Cash and due from banks $175,175  $144,244 
    Interest-bearing deposits in banks  1,729,607   2,147,266 
    Federal funds and other short-term investments  1,882   27,000 
    Cash and cash equivalents  1,906,664   2,318,510 
    Debt securities available-for-sale  3,909,114   4,496,824 
    Debt securities held-to-maturity (fair value $2,351,873 and $1,148,804)  2,500,983   1,156,098 
    Loans held for sale (includes $39,118 and $44,109 at fair value)  75,191   44,109 
    Loans and leases held for investment  14,316,205   11,760,346 
    Less allowance for credit losses - loans and leases  (132,805)  (102,532)
    Loans and leases, net  14,183,400   11,657,814 
    Premises and equipment, net  283,561   245,296 
    Bank owned life insurance  297,220   217,713 
    Goodwill and other intangible assets, net  784,280   472,407 
    Other assets  433,787   338,000 
    Total assets $24,374,200  $20,946,771 
    LIABILITIES AND SHAREHOLDERS' EQUITY    
    Liabilities:    
    Deposits:    
    Noninterest-bearing demand $7,946,049  $6,956,981 
    NOW and interest-bearing demand  4,650,997   4,252,209 
    Money market  5,075,525   4,183,354 
    Savings  1,479,833   1,215,779 
    Time  1,704,657   1,442,498 
    Brokered  199,092   190,358 
    Total deposits  21,056,153   18,241,179 
    Long-term debt  324,230   247,360 
    Accrued expenses and other liabilities  298,802   235,987 
    Total liabilities  21,679,185   18,724,526 
    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 shares authorized,
    106,025,210 and 89,349,826 shares issued and outstanding, respectively
      106,025   89,350 
    Common stock issuable; 574,139 and 595,705 shares  11,311   11,288 
    Capital surplus  2,302,189   1,721,007 
    Retained earnings  354,409   330,654 
    Accumulated other comprehensive loss  (175,341)  (26,476)
    Total shareholders' equity  2,695,015   2,222,245 
    Total liabilities and shareholders' equity $24,374,200  $20,946,771 


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


      Three Months Ended
    March 31,
    (in thousands, except per share data)  2022   2021 
    Interest revenue:    
    Loans, including fees $146,741  $125,726 
    Investment securities, including tax exempt of $2,655 and $2,150, respectively  23,665   15,448 
    Deposits in banks and short-term investments  653   368 
    Total interest revenue  171,059   141,542 
         
    Interest expense:    
    Deposits:    
    NOW and interest-bearing demand  1,469   1,486 
    Money market  1,012   1,804 
    Savings  72   49 
    Time  578   1,880 
    Deposits  3,131   5,219 
    Short-term borrowings     2 
    Long-term debt  4,136   4,257 
    Total interest expense  7,267   9,478 
    Net interest revenue  163,792   132,064 
    Provision for (release of) credit losses  23,086   (12,281)
    Net interest revenue after provision for credit losses  140,706   144,345 
         
    Noninterest income:    
    Service charges and fees  9,070   7,570 
    Mortgage loan gains and other related fees  16,152   22,572 
    Wealth management fees  5,895   3,505 
    Gains from sales of other loans, net  3,198   1,030 
    Lending and loan servicing fees  2,986   2,160 
    Securities losses, net  (3,734)   
    Other  5,406   7,868 
    Total noninterest income  38,973   44,705 
    Total revenue  179,679   189,050 
         
    Noninterest expenses:    
    Salaries and employee benefits  71,006   60,585 
    Communications and equipment  9,248   7,203 
    Occupancy  9,378   6,956 
    Advertising and public relations  1,488   1,199 
    Postage, printing and supplies  2,119   1,822 
    Professional fees  4,447   4,234 
    Lending and loan servicing expense  2,366   2,877 
    Outside services - electronic banking  2,523   2,218 
    FDIC assessments and other regulatory charges  2,173   1,896 
    Amortization of intangibles  1,793   985 
    Merger-related and other charges  9,016   1,543 
    Other  3,718   3,676 
    Total noninterest expenses  119,275   95,194 
    Income before income taxes  60,404   93,856 
    Income tax expense  12,385   20,150 
    Net income  48,019   73,706 
    Preferred stock dividends  1,719   1,719 
    Earnings allocated to participating securities  238   462 
    Net income available to common shareholders $46,062  $71,525 
         
    Net income per common share:    
    Basic $0.43  $0.82 
    Diluted  0.43   0.82 
    Weighted average common shares outstanding:    
    Basic  106,550   87,322 
    Diluted  106,677   87,466 


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


       2022   2021 
    (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) $14,234,026  $146,637 4.18% $11,432,908  $125,122 4.44%
    Taxable securities (3)  5,848,976   21,010 1.44   3,686,405   13,298 1.44 
    Tax-exempt securities (FTE) (1)(3)  510,954   3,566 2.79   304,983   2,888 3.79 
    Federal funds sold and other interest-earning assets  1,910,411   1,020 0.22   1,357,890   1,222 0.36 
    Total interest-earning assets (FTE)  22,504,367   172,233 3.10   16,782,186   142,530 3.44 
                 
    Noninterest-earning assets:            
    Allowance for credit losses  (113,254)      (143,703)    
    Cash and due from banks  166,005       140,292     
    Premises and equipment  277,216       221,411     
    Other assets (3)  1,369,301       1,023,275     
    Total assets $24,203,635      $18,023,461     
                 
    Liabilities and Shareholders' Equity:            
    Interest-bearing liabilities:            
    Interest-bearing deposits:            
    NOW and interest-bearing demand $4,667,098   1,469 0.13  $3,331,043   1,486 0.18 
    Money market  5,110,817   1,012 0.08   3,732,988   1,804 0.20 
    Savings  1,436,881   72 0.02   989,584   49 0.02 
    Time  1,758,895   534 0.12   1,642,423   1,588 0.39 
    Brokered time deposits  79,092   44 0.23   75,259   292 1.57 
    Total interest-bearing deposits  13,052,783   3,131 0.10   9,771,297   5,219 0.22 
    Federal funds purchased and other borrowings  611       12     
    Federal Home Loan Bank advances         3,333   2 0.24 
    Long-term debt  318,995   4,136 5.26   317,172   4,257 5.44 
    Total borrowed funds  319,606   4,136 5.25   320,517   4,259 5.39 
    Total interest-bearing liabilities  13,372,389   7,267 0.22   10,091,814   9,478 0.38 
                 
    Noninterest-bearing liabilities:            
    Noninterest-bearing deposits  7,666,635       5,594,394     
    Other liabilities  378,327       312,610     
    Total liabilities  21,417,351       15,998,818     
    Shareholders' equity  2,786,284       2,024,643     
    Total liabilities and shareholders' equity $24,203,635      $18,023,461     
                 
    Net interest revenue (FTE)   $164,966     $133,052  
    Net interest-rate spread (FTE)     2.88%     3.06%
    Net interest margin (FTE) (4)     2.97%     3.22%

    (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 $81.2 million in 2022 and pretax unrealized gains of $58.3 million in 2021 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. (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 March 31, 2022, United had $24.4 billion in assets and 198 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee, along with a national SBA lending franchise and a national equipment lending subsidiary. In 2022, J.D. Power ranked United highest in customer satisfaction with consumer banking in the Southeast, marking eight out of the last nine 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 recognized United as one of the top ten World’s Best Banks in 2022. Forbes also included United on its 2022 list of the 100 Best Banks in America for the ninth consecutive year. United also received ten (10) Greenwich Excellence Awards in 2021 for excellence in Small Business Banking and Middle Market Banking, including national awards for Overall Satisfaction and Likelihood to Recommend. 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 Reliant acquisition 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.

    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 Reliant acquisition 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 Reliant acquisition, (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 acquisition of 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 acquisition of Reliant. 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, 2021, 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.

    For more information:

    Jefferson Harralson
    Chief Financial Officer
    (864) 240-6208
    Jefferson_Harralson@ucbi.com


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