United Community Banks, Inc. Reports First Quarter Results

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

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

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

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

First Quarter 2021 Financial Highlights:

Net income of $73.7 million and pre-tax, pre-provision income of $81.6 million
EPS increased by 105% compared to last year on a GAAP basis and 102% on an operating basis; compared to fourth quarter 2020, EPS increased by 24% on a GAAP basis and 22% on an operating basis
Return on assets of 1.62%, or 1.65% on an operating basis
Pre-tax, pre-provision return on assets of 1.80%, or 1.83% on an operating basis
Return on common equity of 15.4%
Return on tangible common equity of 19.7% on an operating basis
A release of provision for credit losses of $12.3 million, which reduced the allowance for loan losses to 1.09% (1.18%, excluding PPP loans) from 1.20% in the fourth quarter
Loan production of $1.5 billion, resulting in core loan growth of 3%, annualized for the quarter, excluding the impact of $518 million in new PPP loans and $311 million in PPP loans being forgiven
Core transaction deposits were up $948 million, which represents a 33% annualized growth rate for the quarter
Net interest margin of 3.22% was down 33 basis points from the fourth quarter, mainly due to the impact of accelerated PPP fees during the fourth quarter
Record mortgage closings of $666 million and mortgage rate locks of $993 million, compared to $388 million and $801 million, respectively, a year ago
Noninterest income was up $3.3 million on a linked quarter basis, primarily driven by higher mortgage loan gains and related fees
Noninterest expenses decreased by $11.3 million compared to the fourth quarter mostly due to funding for the United Community Bank Foundation of $8.5 million in the fourth quarter
Efficiency ratio of 53.6%, or 52.7% on an operating basis
Net recoveries of $305,000, or one basis point as a percent of average loans, down 6 basis points from the fourth quarter
Nonperforming assets of 0.30% of total assets, down 5 basis points compared to December 31, 2020
Total loan deferrals of $48 million or 0.4% of the total loan portfolio compared to $71 million or 0.6% in the fourth quarter
Quarterly common shareholder dividend of $0.19 per share declared during the quarter, an increase of 6% year-over-year
Successfully completed the operational conversion of Seaside during the quarter

Conference Call

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

UNITED COMMUNITY BANKS, INC.
Selected Financial Information

	2021				2020																First Quarter 2021 - 2020 Change
*(in thousands, except per share data)*	First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter				First Quarter 2021 - 2020 Change
INCOME SUMMARY
Interest revenue	$	141,542			$	156,071			$	141,773			$	123,605			$	136,547
Interest expense	9,478				10,676				13,319				14,301				17,941
Net interest revenue	132,064				145,395				128,454				109,304				118,606				11	%
(Release of) provision for credit losses	(12,281		)		2,907				21,793				33,543				22,191
Noninterest income	44,705				41,375				48,682				40,238				25,814				73
Total revenue	189,050				183,863				155,343				115,999				122,229				55
Expenses	95,194				106,490				95,981				83,980				81,538				17
Income before income tax expense	93,856				77,373				59,362				32,019				40,691				131
Income tax expense	20,150				17,871				11,755				6,923				8,807				129
Net income	73,706				59,502				47,607				25,096				31,884				131
Merger-related and other charges	1,543				2,452				3,361				397				808
Income tax benefit of merger-related and other charges	(335		)		(552		)		(519		)		(87		)		(182		)
Net income - operating⁽¹⁾	$	74,914			$	61,402			$	50,449			$	25,406			$	32,510			130

Pre-tax pre-provision income ⁽⁵⁾	$	81,575			$	80,280			$	81,155			$	65,562			$	62,882			30

PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.82			$	0.66			$	0.52			$	0.32			$	0.40			105
Diluted net income - operating ⁽¹⁾	0.83				0.68				0.55				0.32				0.41				102
Cash dividends declared	0.19				0.18				0.18				0.18				0.18				6
Book value	22.15				21.90				21.45				21.22				20.80				6
Tangible book value⁽³⁾	17.83				17.56				17.09				16.95				16.52				8
Key performance ratios:
Return on common equity - GAAP ⁽²⁾⁽⁴⁾	15.37			%	12.36			%	10.06			%	6.17			%	7.85			%
Return on common equity - operating ^(1)(2)(4)	15.63				12.77				10.69				6.25				8.01
Return on tangible common equity - operating ^(1)(2)(3)(4)	19.68				16.23				13.52				8.09				10.57
Return on assets - GAAP ⁽⁴⁾	1.62				1.30				1.07				0.71				0.99
Return on assets - operating ⁽¹⁾⁽⁴⁾	1.65				1.34				1.14				0.72				1.01
Return on assets - pre-tax pre-provision ⁽⁴⁾⁽⁵⁾	1.80				1.77				1.86				1.86				1.95
Return on assets - pre-tax pre-provision, excluding merger-related and other charges ^(1)(4)(5)	1.83				1.82				1.93				1.87				1.98
Net interest margin (fully taxable equivalent) ⁽⁴⁾	3.22				3.55				3.27				3.42				4.07
Efficiency ratio - GAAP	53.55				56.73				54.14				55.86				56.15
Efficiency ratio - operating ⁽¹⁾	52.68				55.42				52.24				55.59				55.59
Equity to total assets	10.95				11.29				11.47				11.81				12.54
Tangible common equity to tangible assets ⁽³⁾	8.57				8.81				8.89				9.12				10.22

ASSET QUALITY
Nonperforming loans	$	55,900			$	61,599			$	49,084			$	48,021			$	36,208			54
Foreclosed properties	596				647				953				477				475
Total nonperforming assets ("NPAs")	56,496				62,246				50,037				48,498				36,683				54
Allowance for credit losses - loans	126,866				137,010				134,256				103,669				81,905				55
Net charge-offs	(305		)		1,515				2,538				6,149				8,114
Allowance for credit losses - loans to loans	1.09			%	1.20			%	1.14			%	1.02			%	0.92			%
Net charge-offs to average loans ⁽⁴⁾	(0.01		)		0.05				0.09				0.25				0.37
NPAs to loans and foreclosed properties	0.48				0.55				0.42				0.48				0.41
NPAs to total assets	0.30				0.35				0.29				0.32				0.28

AVERAGE BALANCES ($ in millions)
Loans	$	11,433			$	11,595			$	11,644			$	9,773			$	8,829			29
Investment securities	3,991				3,326				2,750				2,408				2,520				58
Earning assets	16,782				16,394				15,715				12,958				11,798				42
Total assets	18,023				17,698				17,013				14,173				12,944				39
Deposits	15,366				15,057				14,460				12,071				10,915				41
Shareholders’ equity	2,025				1,994				1,948				1,686				1,653				23
Common shares - basic (thousands)	87,322				87,258				87,129				78,920				79,340				10
Common shares - diluted (thousands)	87,466				87,333				87,205				78,924				79,446				10

AT PERIOD END ($ in millions)
Loans	$	11,679			$	11,371			$	11,799			$	10,133			$	8,935			31
Investment securities	4,332				3,645				3,089				2,432				2,540				71
Total assets	18,557				17,794				17,153				15,005				13,086				42
Deposits	15,993				15,232				14,603				12,702				11,035				45
Shareholders’ equity	2,031				2,008				1,967				1,772				1,641				24
Common shares outstanding (thousands)	86,777				86,675				86,611				78,335				78,284				11

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

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information

	2021				2020
*(in thousands, except per share data)*	First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter

Expense reconciliation
Expenses (GAAP)	$	95,194			$	106,490			$	95,981			$	83,980			$	81,538
Merger-related and other charges	(1,543		)		(2,452		)		(3,361		)		(397		)		(808		)
Expenses - operating	$	93,651			$	104,038			$	92,620			$	83,583			$	80,730

Net income reconciliation
Net income (GAAP)	$	73,706			$	59,502			$	47,607			$	25,096			$	31,884
Merger-related and other charges	1,543				2,452				3,361				397				808
Income tax benefit of merger-related and other charges	(335		)		(552		)		(519		)		(87		)		(182		)
Net income - operating	$	74,914			$	61,402			$	50,449			$	25,406			$	32,510

Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)	$	73,706			$	59,502			$	47,607			$	25,096			$	31,884
Income tax expense	20,150				17,871				11,755				6,923				8,807
(Release of) provision for credit losses	(12,281		)		2,907				21,793				33,543				22,191
Pre-tax pre-provision income	$	81,575			$	80,280			$	81,155			$	65,562			$	62,882

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.82			$	0.66			$	0.52			$	0.32			$	0.40
Merger-related and other charges, net of tax	0.01				0.02				0.03				—				0.01
Diluted income per common share - operating	$	0.83			$	0.68			$	0.55			$	0.32			$	0.41

Book value per common share reconciliation
Book value per common share (GAAP)	$	22.15			$	21.90			$	21.45			$	21.22			$	20.80
Effect of goodwill and other intangibles	(4.32		)		(4.34		)		(4.36		)		(4.27		)		(4.28		)
Tangible book value per common share	$	17.83			$	17.56			$	17.09			$	16.95			$	16.52

Return on tangible common equity reconciliation
Return on common equity (GAAP)	15.37			%	12.36			%	10.06			%	6.17			%	7.85			%
Merger-related and other charges, net of tax	0.26				0.41				0.63				0.08				0.16
Return on common equity - operating	15.63				12.77				10.69				6.25				8.01
Effect of goodwill and other intangibles	4.05				3.46				2.83				1.84				2.56
Return on tangible common equity - operating	19.68			%	16.23			%	13.52			%	8.09			%	10.57			%

Return on assets reconciliation
Return on assets (GAAP)	1.62			%	1.30			%	1.07			%	0.71			%	0.99			%
Merger-related and other charges, net of tax	0.03				0.04				0.07				0.01				0.02
Return on assets - operating	1.65			%	1.34			%	1.14			%	0.72			%	1.01			%

Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)	1.62			%	1.30			%	1.07			%	0.71			%	0.99			%
Income tax expense	0.46				0.40				0.28				0.20				0.27
(Release of) provision for credit losses	(0.28		)		0.07				0.51				0.95				0.69
Return on assets - pre-tax, pre-provision	1.80				1.77				1.86				1.86				1.95
Merger-related and other charges	0.03				0.05				0.07				0.01				0.03
Return on assets - pre-tax pre-provision, excluding merger-related and other charges	1.83			%	1.82			%	1.93			%	1.87			%	1.98			%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)	53.55			%	56.73			%	54.14			%	55.86			%	56.15			%
Merger-related and other charges	(0.87		)		(1.31		)		(1.90		)		(0.27		)		(0.56		)
Efficiency ratio - operating	52.68			%	55.42			%	52.24			%	55.59			%	55.59			%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	10.95			%	11.29			%	11.47			%	11.81			%	12.54			%
Effect of goodwill and other intangibles	(1.86		)		(1.94		)		(2.02		)		(2.05		)		(2.32		)
Effect of preferred equity	(0.52		)		(0.54		)		(0.56		)		(0.64		)		—
Tangible common equity to tangible assets	8.57			%	8.81			%	8.89			%	9.12			%	10.22			%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End

	2021		2020								Linked Quarter Change			Year over Year Change
(in millions)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter		Linked Quarter Change			Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	2,107	$	2,090	$	2,009	$	1,759	$	1,703	$	17		$	404
Income producing commercial RE	2,599		2,541		2,493		2,178		2,065		58			534
Commercial & industrial	1,760		1,853		1,788		1,219		1,310		(93		)	450
Paycheck protection program	883		646		1,317		1,095		—		237			883
Commercial construction	960		967		987		946		959		(7		)	1
Equipment financing	913		864		823		779		761		49			152
Total commercial	9,222		8,961		9,417		7,976		6,798		261			2,424
Residential mortgage	1,362		1,285		1,270		1,152		1,128		77			234
Home equity lines of credit	679		697		707		654		668		(18		)	11
Residential construction	272		281		257		230		216		(9		)	56
Consumer	144		147		148		121		125		(3		)	19
Total loans	$	11,679	$	11,371	$	11,799	$	10,133	$	8,935	$	308		$	2,744

LOANS BY MARKET⁽¹⁾
North Georgia	$	982	$	955	$	945	$	951	$	958	$	27		$	24
Atlanta	1,953		1,889		1,853		1,852		1,820		64			133
North Carolina	1,326		1,281		1,246		1,171		1,124		45			202
Coastal Georgia	597		617		614		618		604		(20		)	(7		)
Gainesville	222		224		229		233		235		(2		)	(13		)
East Tennessee	398		415		420		433		425		(17		)	(27		)
South Carolina	1,997		1,947		1,870		1,778		1,774		50			223
Florida	1,160		1,435		1,453		—		—		(275		)	1,160
Commercial Banking Solutions	3,044		2,608		3,169		3,097		1,995		436			1,049
Total loans	$	11,679	$	11,371	$	11,799	$	10,133	$	8,935	$	308		$	2,744

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

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality

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

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

⁽¹⁾ Annualized.

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

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

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

	Three Months Ended March 31,
(in thousands, except per share data)	2021			2020
Interest revenue:
Loans, including fees	$	125,726		$	118,063
Investment securities, including tax exempt of $2,150 and $1,523, respectively	15,448			17,394
Deposits in banks and short-term investments	368			1,090
Total interest revenue	141,542			136,547

Interest expense:
Deposits:
NOW and interest-bearing demand	1,486			2,978
Money market	1,804			4,531
Savings	49			35
Time	1,880			7,531
Deposits	5,219			15,075
Short-term borrowings	—			1
Federal Home Loan Bank advances	2			1
Long-term debt	4,257			2,864
Total interest expense	9,478			17,941
Net interest revenue	132,064			118,606
(Release of) provision for credit losses	(12,281		)	22,191
Net interest revenue after provision for credit losses	144,345			96,415

Noninterest income:
Service charges and fees	7,570			8,638
Mortgage loan gains and other related fees	22,572			8,310
Wealth management fees	3,505			1,640
Gains from sales of other loans, net	1,030			1,674
Other	10,028			5,552
Total noninterest income	44,705			25,814
Total revenue	189,050			122,229

Noninterest expenses:
Salaries and employee benefits	60,585			51,358
Communications and equipment	7,203			5,946
Occupancy	6,956			5,714
Advertising and public relations	1,199			1,274
Postage, printing and supplies	1,822			1,670
Professional fees	4,234			4,097
Lending and loan servicing expense	2,877			2,293
Outside services - electronic banking	2,218			1,832
FDIC assessments and other regulatory charges	1,896			1,484
Amortization of intangibles	985			1,040
Merger-related and other charges	1,543			808
Other	3,676			4,022
Total noninterest expenses	95,194			81,538
Net income before income taxes	93,856			40,691
Income tax expense	20,150			8,807
Net income	73,706			31,884
Preferred stock dividends	1,719			—
Undistributed earnings allocated to participating securities	462			243
Net income available to common shareholders	$	71,525		$	31,641

Net income per common share:
Basic	$	0.82		$	0.40
Diluted	0.82			0.40
Weighted average common shares outstanding:
Basic	87,322			79,340
Diluted	87,466			79,446

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

	2021							2020
*(dollars in thousands, fully taxable equivalent (FTE))*	Average Balance			Interest		Average Rate		Average Balance			Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾	$	11,432,908		$	125,122	4.44	%	$	8,828,880		$	117,796	5.37	%
Taxable securities⁽³⁾	3,686,405			13,298		1.44		2,357,635			15,871		2.69
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾	304,983			2,888		3.79		162,253			2,045		5.04
Federal funds sold and other interest-earning assets	1,357,890			1,222		0.36		448,775			1,632		1.46
Total interest-earning assets (FTE)	16,782,186			142,530		3.44		11,797,543			137,344		4.68

Noninterest-earning assets:
Allowance for credit losses	(143,703		)					(69,777		)
Cash and due from banks	140,292							128,254
Premises and equipment	221,411							219,243
Other assets ⁽³⁾	1,023,275							868,452
Total assets	$	18,023,461						$	12,943,715

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	3,331,043		1,486		0.18		$	2,412,733		2,978		0.50
Money market	3,732,988			1,804		0.20		2,340,723			4,531		0.78
Savings	989,584			49		0.02		712,110			35		0.02
Time	1,642,423			1,588		0.39		1,841,552			7,250		1.58
Brokered time deposits	75,259			292		1.57		80,821			281		1.40
Total interest-bearing deposits	9,771,297			5,219		0.22		7,387,939			15,075		0.82
Federal funds purchased and other borrowings	12			—		—		396			1		1.02
Federal Home Loan Bank advances	3,333			2		0.24		165			1		2.44
Long-term debt	317,172			4,257		5.44		212,762			2,864		5.41
Total borrowed funds	320,517			4,259		5.39		213,323			2,866		5.40
Total interest-bearing liabilities	10,091,814			9,478		0.38		7,601,262			17,941		0.95

Noninterest-bearing liabilities:
Noninterest-bearing deposits	5,594,394							3,527,385
Other liabilities	312,610							162,187
Total liabilities	15,998,818							11,290,834
Shareholders' equity	2,024,643							1,652,881
Total liabilities and shareholders' equity	$	18,023,461						$	12,943,715

Net interest revenue (FTE)				$	133,052						$	119,403
Net interest-rate spread (FTE)						3.06	%						3.73	%
Net interest margin (FTE) ⁽⁴⁾						3.22	%						4.07	%

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

About United Community Banks, Inc.

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

Non-GAAP Financial Measures

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

For more information:

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

United Community Banks, Inc. Reports First Quarter Results

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

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