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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 24, 2024

UNITED COMMUNITY BANKS, INC.

(Exact name of registrant as specified in its charter)

Georgia	001-35095	58-1807304
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS Employer Identification No.)

200 East Camperdown Way
Greenville, South Carolina 29601
(Address of principal executive offices)

Registrant's telephone number, including area code:
(800) 822-2651

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, par value $1 per share	UCBI	Nasdaq Global Select Market
Depositary shares, each representing 1/1000th interest in a share of Series I Non-Cumulative Preferred Stock	UCBIO	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02

Results of Operations and Financial Condition.

On July 24, 2024, United Community Banks, Inc. (“United”) issued a press release announcing financial results for its second 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 July 24, 2024, United will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for its second 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 July 24, 2024.

99.2	Slide presentation to be used during July 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: July 24, 2024

EX-99.1 2 tm2420023d1_ex99-1.htm EXHIBIT 99.1

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 Second Quarter Results

Strong Margin Expansion Drives Growth in Net Income

GREENVILLE, SC – July 24, 2024 - United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the 2024 second quarter was $66.6 million and pre-tax, pre-provision income was $98.2 million. Diluted earnings per share of $0.54 for the quarter represented an increase of $0.01, or 2%, from the second quarter a year ago and an increase of $0.03, or 6%, from the first quarter of 2024.

On an operating basis, United’s diluted earnings per share of $0.58 was up 5% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and a lower provision for credit losses. The linked-quarter increase in earnings per share was primarily driven by higher net interest income. United’s return on assets was 0.97%, or 1.04% on an operating basis. Return on equity was 7.53% and return on tangible common equity was 11.68%. On a pre-tax, pre-provision basis, operating return on assets was 1.54% for the quarter. At quarter end, tangible common equity to tangible assets was 8.78%, up 29 basis points from the first quarter of 2024.

Chairman and CEO Lynn Harton stated, “Our second quarter results showed solid improvement, driven by healthy net interest margin expansion and disciplined expense control. We achieved these results by remaining sharply focused on loan and deposit pricing even if that meant accepting slower growth in the near term. Compared with the first quarter, we saw decreases in both loans and deposits, yet our pricing discipline led to a $9.55 million increase in net interest income. We expect loan growth to be weaker in the near term as customers appear to be taking a conservative approach to economic and election uncertainty.” Harton continued, “On the strategic front, after an evaluation of our entire wealth management business, we made the decision to sell our investment in our Registered Investment Advisor, FinTrust Capital Advisors, LLC (FinTrust), while setting a more aggressive growth course for our Private Banking, Retail, and Trust businesses. We view the Private Banking, Retail and Trust as more attractive in the medium to long term, and decided to focus our Wealth resources in these businesses. We expect the FinTrust transaction to close in the third quarter.”

United’s net interest margin increased by 17 basis points to 3.37% from the first quarter. The average yield on United’s interest-earning assets was up 20 basis points to 5.59%, while its cost of deposits increased only three basis points to 2.35%, leading to expansion in the net interest margin. Net charge-offs were $11.6 million or 0.26% of average loans during the quarter, down two basis points compared to the first quarter of 2024, and NPAs were 43 basis points relative to total assets, up four basis points from the previous quarter.

Mr. Harton concluded, “Our second quarter results give me tremendous confidence that 2024 will be a great year for United. We remain focused on being a great partner for our clients and communities; growing our business and remaining disciplined in the face of any challenges that lie ahead. We are steadfast in our commitment to service as well as delivering exceptional value to our shareholders.”

Second Quarter 2024 Financial Highlights:

Net income of $66.6 million and pre-tax, pre-provision income of $98.2 million

EPS up 2% compared to second quarter 2023 on a GAAP basis and up 5% on an operating basis; compared to first quarter 2024, EPS up 6% on a GAAP basis and 12% on an operating basis

Return on assets of 0.97%, or 1.04% on an operating basis

Pre-tax, pre-provision return on assets of 1.54% on an operating basis

Return on common equity of 7.53%

Return on tangible common equity of 11.68% on an operating basis

A provision for credit losses of $12.2 million, which increased the allowance for credit losses-loans to 1.17% of loans from 1.15% in the first quarter.

Loan production of $989 million, up from $881 million in the first quarter

Customer deposits were down $339 million for the quarter, as seasonal public funds deposit outflow combined with more conservative public funds deposit pricing

Net interest margin of 3.37% increased by 17 basis points from the first quarter mostly due to focus on pricing discipline on loans and deposits

Mortgage closings of $215 million compared to $263 million a year ago; mortgage rate locks of $295 million compared to $305 million a year ago

Noninterest income was down $3.0 million on a linked quarter basis, primarily driven by the absence of a $2.4 million gain in the first quarter from terminating an office space lease

Noninterest expenses increased by $2.0 million compared to the first quarter on a GAAP basis and were flat on an operating basis

Efficiency ratio of 59.7%, or 57.1% on an operating basis

Net charge-offs of $11.6 million, or 26 basis points as a percent of average loans, down 2 basis points from the net charge-offs level experienced in the first quarter

Nonperforming assets of 0.43% of total assets, up four basis points compared to March 31, 2024

Quarterly common shareholder dividend of $0.23 per share declared during the quarter, unchanged year-over-year

We reached an agreement to sell FinTrust and recognized a $5.1 million loss related to the sale in the form of a goodwill impairment charge. The transaction is expected to close in the third quarter.

Conference Call

United will hold a conference call on Wednesday, July 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/10190532/fcfa86e478. 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									Second Quarter 2024 -			For the Six Months Ended June 30,						YTD 2024 -
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2023 Change			2024			2023			2023 Change
INCOME SUMMARY
Interest revenue	$	346,965		$	336,728		$	338,698		$	323,147		$	295,775					$	683,693		$	575,262
Interest expense		138,265			137,579			135,245			120,591			95,489						275,844			163,506
Net interest revenue		208,700			199,149			203,453			202,556			200,286			4	%		407,849			411,756			(1	)%
Provision for credit losses		12,235			12,899			14,626			30,268			22,753						25,134			44,536
Noninterest income		36,556			39,587			(23,090	)		31,977			36,387			—			76,143			66,596			14
Total revenue		233,021			225,837			165,737			204,265			213,920			9			458,858			433,816			6
Noninterest expenses		147,044			145,002			154,587			144,474			132,407			11			292,046			272,212			7
Income before income tax expense		85,977			80,835			11,150			59,791			81,513			5			166,812			161,604			3
Income tax expense		19,362			18,204			(2,940	)		11,925			18,225			6			37,566			36,016			4
Net income		66,615			62,631			14,090			47,866			63,288			5			129,246			125,588			3
Non-operating items		6,493			2,187			67,450			9,168			3,645						8,680			12,276
Income tax benefit of non-operating items		(1,462	)		(493	)		(16,714	)		(2,000	)		(820	)					(1,955	)		(2,775	)
Net income - operating (1)	$	71,646		$	64,325		$	64,826		$	55,034		$	66,113			8		$	135,971		$	135,089			1
Pre-tax pre-provision income (5)	$	98,212		$	93,734		$	25,776		$	90,059		$	104,266			(6	)	$	191,946		$	206,140			(7	)
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.54		$	0.51		$	0.11		$	0.39		$	0.53			2		$	1.05		$	1.05			—
Diluted net income - operating (1)		0.58			0.52			0.53			0.45			0.55			5			1.10			1.13			(3	)
Cash dividends declared		0.23			0.23			0.23			0.23			0.23			—			0.46			0.46			—
Book value		27.18			26.83			26.52			25.87			25.98			5			27.18			25.98			5
Tangible book value (3)		19.13			18.71			18.39			17.70			17.83			7			19.13			17.83			7
Key performance ratios:
Return on common equity - GAAP (2)(4)		7.53	%		7.14	%		1.44	%		5.32	%		7.47	%					7.34	%		7.41	%
Return on common equity - operating (1)(2)(4)		8.12			7.34			7.27			6.14			7.82						7.73			7.98
Return on tangible common equity - operating (1)(2)(3)(4)		11.68			10.68			10.58			9.03			11.35						11.18			11.49
Return on assets - GAAP (4)		0.97			0.90			0.18			0.68			0.95						0.94			0.95
Return on assets - operating (1)(4)		1.04			0.93			0.92			0.79			1.00						0.99			1.03
Return on assets - pre-tax pre-provision - operating(1)(4)(5)		1.54			1.40			1.33			1.44			1.65						1.47			1.68
Net interest margin (fully taxable equivalent) (4)		3.37			3.20			3.19			3.24			3.37						3.28			3.49
Efficiency ratio - GAAP		59.70			60.47			66.33			61.32			55.71						60.08			56.46
Efficiency ratio - operating (1)		57.06			59.15			59.57			57.43			54.17						58.08			53.92
Equity to total assets		12.35			12.06			11.95			11.85			11.89						12.35			11.89
Tangible common equity to tangible assets (3)		8.78			8.49			8.36			8.18			8.21						8.78			8.21
ASSET QUALITY
Nonperforming assets ("NPAs")	$	116,722		$	107,230		$	92,877		$	90,883		$	103,737			13		$	116,722		$	103,737			13
Allowance for credit losses - loans		213,022			210,934			208,071			201,557			190,705			12			213,022			190,705			12
Allowance for credit losses - total		224,740			224,119			224,128			219,624			212,277			6			224,740			212,277			6
Net charge-offs		11,614			12,908			10,122			26,638			8,399						24,522			15,483
Allowance for credit losses - loans to loans		1.17	%		1.15	%		1.14	%		1.11	%		1.10	%					1.17	%		1.10	%
Allowance for credit losses - total to loans		1.23			1.22			1.22			1.21			1.22						1.23			1.22
Net charge-offs to average loans (4)		0.26			0.28			0.22			0.59			0.20						0.27			0.18
NPAs to total assets		0.43			0.39			0.34			0.34			0.40						0.43			0.40
AT PERIOD END ($ in millions)
Loans	$	18,211		$	18,375		$	18,319		$	18,203		$	17,395			5		$	18,211		$	17,395			5
Investment securities		6,038			5,859			5,822			5,701			5,914			2			6,038			5,914			2
Total assets		27,057			27,365			27,297			26,869			26,120			4			27,057			26,120			4
Deposits		22,982			23,332			23,311			22,858			22,252			3			22,982			22,252			3
Shareholders’ equity		3,343			3,300			3,262			3,184			3,106			8			3,343			3,106			8
Common shares outstanding (thousands)		119,175			119,137			119,010			118,976			115,266			3			119,175			115,266			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									For the Six Months Ended June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2024			2023
Noninterest expense reconciliation
Noninterest expenses (GAAP)	$	147,044		$	145,002		$	154,587		$	144,474		$	132,407		$	292,046		$	272,212
Loss on FinTrust (goodwill impairment)		(5,100	)		—			—			—			—			(5,100	)		—
FDIC special assessment		764			(2,500	)		(9,995	)		—			—			(1,736	)		—
Merger-related and other charges		(2,157	)		(2,087	)		(5,766	)		(9,168	)		(3,645	)		(4,244	)		(12,276	)
Noninterest expenses - operating	$	140,551		$	140,415		$	138,826		$	135,306		$	128,762		$	280,966		$	259,936

Net income to operating income reconciliation
Net income (GAAP)	$	66,615		$	62,631		$	14,090		$	47,866		$	63,288		$	129,246		$	125,588
Bond portfolio restructuring loss		—			—			51,689			—			—			—			—
Gain on lease termination		—			(2,400	)		—			—			—			(2,400	)		—
Loss on FinTrust (goodwill impairment)		5,100			—			—			—			—			5,100			—
FDIC special assessment		(764	)		2,500			9,995			—			—			1,736			—
Merger-related and other charges		2,157			2,087			5,766			9,168			3,645			4,244			12,276
Income tax benefit of non-operating items		(1,462	)		(493	)		(16,714	)		(2,000	)		(820	)		(1,955	)		(2,775	)
Net income - operating	$	71,646		$	64,325		$	64,826		$	55,034		$	66,113		$	135,971		$	135,089

Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)	$	66,615		$	62,631		$	14,090		$	47,866		$	63,288		$	129,246		$	125,588
Income tax expense		19,362			18,204			(2,940	)		11,925			18,225			37,566			36,016
Provision for credit losses		12,235			12,899			14,626			30,268			22,753			25,134			44,536
Pre-tax pre-provision income	$	98,212		$	93,734		$	25,776		$	90,059		$	104,266		$	191,946		$	206,140

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.54		$	0.51		$	0.11		$	0.39		$	0.53		$	1.05		$	1.05
Bond portfolio restructuring loss		—			—			0.32			—			—			—			—
Gain on lease termination		—			(0.02	)		—			—			—			(0.02	)		—
Loss on FinTrust (goodwill impairment)		0.03			—			—			—			—			0.03			—
FDIC special assessment		—			0.02			0.06			—			—			0.02			—
Merger-related and other charges		0.01			0.01			0.04			0.06			0.02			0.02			0.08
Diluted income per common share - operating	$	0.58		$	0.52		$	0.53		$	0.45		$	0.55		$	1.10		$	1.13

Book value per common share reconciliation
Book value per common share (GAAP)	$	27.18		$	26.83		$	26.52		$	25.87		$	25.98		$	27.18		$	25.98
Effect of goodwill and other intangibles		(8.05	)		(8.12	)		(8.13	)		(8.17	)		(8.15	)		(8.05	)		(8.15	)
Tangible book value per common share	$	19.13		$	18.71		$	18.39		$	17.70		$	17.83		$	19.13		$	17.83

Return on tangible common equity reconciliation
Return on common equity (GAAP)		7.53	%		7.14	%		1.44	%		5.32	%		7.47	%		7.34	%		7.41	%
Bond portfolio restructuring loss		—			—			4.47			—			—			—			—
Gain on lease termination		—			(0.22	)		—			—			—			(0.11	)		—
Loss on FinTrust (goodwill impairment)		0.46			—			—			—			—			0.23			—
FDIC special assessment		(0.07	)		0.23			0.86			—			—			0.08			—
Merger-related and other charges		0.20			0.19			0.50			0.82			0.35			0.19			0.57
Return on common equity - operating		8.12			7.34			7.27			6.14			7.82			7.73			7.98
Effect of goodwill and other intangibles		3.56			3.34			3.31			2.89			3.53			3.45			3.51
Return on tangible common equity - operating		11.68	%		10.68	%		10.58	%		9.03	%		11.35	%		11.18	%		11.49	%

Return on assets reconciliation
Return on assets (GAAP)		0.97	%		0.90	%		0.18	%		0.68	%		0.95	%		0.94	%		0.95	%
Bond portfolio restructuring loss		—			—			0.57			—			—			—			—
Gain on lease termination		—			(0.03	)		—			—			—			(0.01	)		—
Loss on FinTrust (goodwill impairment)		0.06			—			—			—			—			0.03			—
FDIC special assessment		(0.01	)		0.03			0.11			—			—			0.01			—
Merger-related and other charges		0.02			0.03			0.06			0.11			0.05			0.02			0.08
Return on assets - operating		1.04	%		0.93	%		0.92	%		0.79	%		1.00	%		0.99	%		1.03	%

Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)		0.97	%		0.90	%		0.18	%		0.68	%		0.95	%		0.94	%		0.95	%
Income tax (benefit) expense		0.29			0.27			(0.04	)		0.18			0.29			0.28			0.28
Provision for credit losses		0.18			0.19			0.21			0.45			0.35			0.19			0.35
Bond portfolio restructuring loss		—			—			0.75			—			—			—			—
Gain on lease termination		—			(0.04	)		—			—			—			(0.02	)		—
Loss on FinTrust (goodwill impairment)		0.08			—			—			—			—			0.04			—
FDIC special assessment		(0.01	)		0.04			0.15			—			—			0.01			—
Merger-related and other charges		0.03			0.04			0.08			0.13			0.06			0.03			0.10
Return on assets - pre-tax pre-provision - operating		1.54	%		1.40	%		1.33	%		1.44	%		1.65	%		1.47	%		1.68	%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		59.70	%		60.47	%		66.33	%		61.32	%		55.71	%		60.08	%		56.46	%
Gain on lease termination		—			0.60			—			—			—			0.29			—
Loss on FinTrust (goodwill impairment)		(2.07	)		—			—			—			—			(1.05	)		—
FDIC special assessment		0.31			(1.05	)		(4.29	)		—			—			(0.36	)		—
Merger-related and other charges		(0.88	)		(0.87	)		(2.47	)		(3.89	)		(1.54	)		(0.88	)		(2.54	)
Efficiency ratio - operating		57.06	%		59.15	%		59.57	%		57.43	%		54.17	%		58.08	%		53.92	%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.35	%		12.06	%		11.95	%		11.85	%		11.89	%		12.35	%		11.89	%
Effect of goodwill and other intangibles		(3.24	)		(3.25	)		(3.27	)		(3.33	)		(3.31	)		(3.24	)		(3.31	)
Effect of preferred equity		(0.33	)		(0.32	)		(0.32	)		(0.34	)		(0.37	)		(0.33	)		(0.37	)
Tangible common equity to tangible assets		8.78	%		8.49	%		8.36	%		8.18	%		8.21	%		8.78	%		8.21	%

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End

	2024					2023						Linked			Year over
(in millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter		Quarter Change			Year Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	3,297		$	3,310	$	3,264	$	3,279	$	3,111	$	(13	)	$	186
Income producing commercial RE		4,058			4,206		4,264		4,130		3,670		(148	)		388
Commercial & industrial		2,299			2,405		2,411		2,504		2,550		(106	)		(251	)
Commercial construction		2,014			1,936		1,860		1,850		1,739		78			275
Equipment financing		1,581			1,544		1,541		1,534		1,510		37			71
Total commercial		13,249			13,401		13,340		13,297		12,580		(152	)		669
Residential mortgage		3,266			3,240		3,199		3,043		2,905		26			361
Home equity		985			969		959		941		927		16			58
Residential construction		211			257		302		399		463		(46	)		(252	)
Manufactured housing		321			328		336		343		340		(7	)		(19	)
Consumer		183			180		181		180		180		3			3
Fair value hedge basis adjustment		(4	)		—		2		—		—		(4	)		(4	)
Total loans	$	18,211		$	18,375	$	18,319	$	18,203	$	17,395	$	(164	)	$	816

LOANS BY MARKET
Georgia	$	4,411		$	4,356	$	4,357	$	4,321	$	4,281	$	55		$	130
South Carolina		2,779			2,804		2,780		2,801		2,750		(25	)		29
North Carolina		2,591			2,566		2,492		2,445		2,355		25			236
Tennessee		2,144			2,209		2,244		2,314		2,387		(65	)		(243	)
Florida		2,407			2,443		2,442		2,318		1,708		(36	)		699
Alabama		1,021			1,068		1,082		1,070		1,062		(47	)		(41	)
Commercial Banking Solutions		2,858			2,929		2,922		2,934		2,852		(71	)		6
Total loans	$	18,211		$	18,375	$	18,319	$	18,203	$	17,395	$	(164	)	$	816

UNITED COMMUNITY BANKS, INC.

Financial Highlights

Credit Quality

(in thousands)

	2024				2023
	Second Quarter		First Quarter		Fourth Quarter
NONACCRUAL LOANS
Owner occupied RE	$	4,820	$	2,310	$	3,094
Income producing RE		34,285		29,186		30,128
Commercial & industrial		17,335		20,134		13,467
Commercial construction		6,854		1,862		1,878
Equipment financing		8,341		8,829		8,505
Total commercial		71,635		62,321		57,072
Residential mortgage		18,473		16,569		13,944
Home equity		3,779		4,984		3,772
Residential construction		163		1,244		944
Manufactured housing		20,356		19,797		15,861
Consumer		72		54		94
Total nonaccrual loans		114,478		104,969		91,687
OREO and repossessed assets		2,244		2,261		1,190
Total NPAs	$	116,722	$	107,230	$	92,877

	2024												2023
	Second Quarter						First Quarter						Fourth 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	$	163			0.02	%	$	202			0.02	%	$	35			—	%
Income producing RE		2,968			0.29			205			0.02			(562	)		(0.05	)
Commercial & industrial		1,281			0.22			3,906			0.65			547			0.09
Commercial construction		(48	)		(0.01	)		20			—			33			0.01
Equipment financing		5,502			1.42			6,362			1.66			7,926			2.05
Total commercial		9,866			0.30			10,695			0.32			7,979			0.24
Residential mortgage		(107	)		(0.01	)		(16	)		—			12			—
Home equity		(27	)		(0.01	)		(54	)		(0.02	)		(68	)		(0.03	)
Residential construction		26			0.04			119			0.17			(13	)		(0.01	)
Manufactured housing		1,150			1.43			1,569			1.90			1,444			1.69
Consumer		706			1.57			595			1.33			768			1.70
Total	$	11,614			0.26		$	12,908			0.28		$	10,122			0.22

(1) Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)	June 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	198,234		$	200,781
Interest-bearing deposits in banks		364,629			803,094
Cash and cash equivalents		562,863			1,003,875
Debt securities available-for-sale		3,604,769			3,331,084
Debt securities held-to-maturity (fair value $2,004,427 and $2,095,620, respectively)		2,432,941			2,490,848
Loans held for sale		49,315			33,008
Loans and leases held for investment		18,211,193			18,318,755
Allowance for credit losses - loans and leases		(213,022	)		(208,071	)
Loans and leases, net		17,998,171			18,110,684
Premises and equipment, net		395,202			378,421
Bank owned life insurance		344,162			345,371
Goodwill and other intangible assets, net		978,645			990,087
Other assets		691,133			613,873
Total assets	$	27,057,201		$	27,297,251
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	6,291,124		$	6,534,307
NOW and interest-bearing demand		5,794,085			6,155,193
Money market		6,077,129			5,600,587
Savings		1,144,696			1,207,807
Time		3,510,917			3,649,498
Brokered		164,171			163,219
Total deposits		22,982,122			23,310,611
Long-term debt		324,887			324,823
Accrued expenses and other liabilities		407,559			400,292
Total liabilities		23,714,568			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, 119,174,803 and 119,010,319 shares issued and outstanding, respectively		119,175			119,010
Common stock issuable; 568,985 and 620,108 shares, respectively		12,145			13,110
Capital surplus		2,705,345			2,699,112
Retained earnings		652,239			581,219
Accumulated other comprehensive loss		(234,537	)		(239,192	)
Total shareholders' equity		3,342,633			3,261,525
Total liabilities and shareholders' equity	$	27,057,201		$	27,297,251

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Income (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Interest revenue:
Loans, including fees	$	291,595	$	250,484	$	575,578	$	486,915
Investment securities, including tax exempt of $1,699, $1,731, $3,420 and $3,841, respectively		50,063		41,060		96,499		81,046
Deposits in banks and short-term investments		5,307		4,231		11,616		7,301
Total interest revenue		346,965		295,775		683,693		575,262

Interest expense:
Deposits:
NOW and interest-bearing demand		43,910		27,597		90,121		45,196
Money market		53,531		33,480		104,009		58,546
Savings		687		702		1,393		1,240
Time		36,334		27,438		72,723		42,096
Deposits		134,462		89,217		268,246		147,078
Short-term borrowings		60		1,849		60		2,997
Federal Home Loan Bank advances		—		649		—		5,761
Long-term debt		3,743		3,774		7,538		7,670
Total interest expense		138,265		95,489		275,844		163,506
Net interest revenue		208,700		200,286		407,849		411,756
Provision for credit losses		12,235		22,753		25,134		44,536
Net interest revenue after provision for credit losses		196,465		177,533		382,715		367,220

Noninterest income:
Service charges and fees		10,620		9,777		19,884		18,476
Mortgage loan gains and other related fees		6,799		6,584		14,310		11,105
Wealth management fees		6,386		5,600		12,699		11,324
Gains from sales of other loans		1,296		2,305		2,833		4,221
Lending and loan servicing fees		3,328		2,978		7,538		6,994
Securities losses, net		—		—		—		(1,644	)
Other		8,127		9,143		18,879		16,120
Total noninterest income		36,556		36,387		76,143		66,596
Total revenue		233,021		213,920		458,858		433,816

Noninterest expenses:
Salaries and employee benefits		85,818		76,250		170,803		154,948
Communications and equipment		11,988		10,744		23,908		20,752
Occupancy		11,056		10,194		22,155		20,083
Advertising and public relations		2,459		2,314		4,360		4,663
Postage, printing and supplies		2,251		2,382		4,899		4,919
Professional fees		6,044		6,592		12,032		12,664
Lending and loan servicing expense		2,014		2,530		3,841		4,849
Outside services - electronic banking		2,812		2,660		5,730		6,085
FDIC assessments and other regulatory charges		4,467		4,142		12,033		8,143
Amortization of intangibles		3,794		3,421		7,681		6,949
Merger-related and other charges		2,157		3,645		4,244		12,276
Other		12,184		7,533		20,360		15,881
Total noninterest expenses		147,044		132,407		292,046		272,212
Income before income taxes		85,977		81,513		166,812		161,604
Income tax expense		19,362		18,225		37,566		36,016
Net income		66,615		63,288		129,246		125,588
Preferred stock dividends		1,573		1,719		3,146		3,438
Earnings allocated to participating securities		368		342		713		680
Net income available to common shareholders	$	64,674	$	61,227	$	125,387	$	121,470

Net income per common share:
Basic	$	0.54	$	0.53	$	1.05	$	1.05
Diluted		0.54		0.53		1.05		1.05
Weighted average common shares outstanding:
Basic		119,726		115,774		119,694		115,614
Diluted		119,785		115,869		119,763		115,795

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,

	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)	$	18,213,384		$	291,378		6.43	%	$	17,166,129		$	250,472		5.85	%
Taxable securities (3)		5,952,414			48,364		3.25			5,956,193			39,329		2.64
Tax-exempt securities (FTE) (1)(3)		363,393			2,273		2.50			369,364			2,323		2.52
Federal funds sold and other interest-earning assets		499,565			6,011		4.84			461,022			4,658		4.05
Total interest-earning assets (FTE)		25,028,756			348,026		5.59			23,952,708			296,782		4.97

Noninterest-earning assets:
Allowance for credit losses		(215,104	)							(181,769	)
Cash and due from banks		204,792								251,691
Premises and equipment		392,325								345,771
Other assets (3)		1,605,558								1,500,827
Total assets	$	27,016,327							$	25,869,228

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	5,866,038			43,910		3.01		$	4,879,591			27,597		2.27
Money market		6,068,530			53,531		3.55			5,197,789			33,480		2.58
Savings		1,160,708			687		0.24			1,306,394			702		0.22
Time		3,544,327			35,695		4.05			2,976,482			22,471		3.03
Brokered time deposits		50,323			639		5.11			423,536			4,967		4.70
Total interest-bearing deposits		16,689,926			134,462		3.24			14,783,792			89,217		2.42
Federal funds purchased and other borrowings		4,093			60		5.90			145,233			1,849		5.11
Federal Home Loan Bank advances		—			—		—			50,989			649		5.11
Long-term debt		324,870			3,743		4.63			324,740			3,774		4.66
Total borrowed funds		328,963			3,803		4.65			520,962			6,272		4.83
Total interest-bearing liabilities		17,018,889			138,265		3.27			15,304,754			95,489		2.50

Noninterest-bearing liabilities:
Noninterest-bearing deposits		6,283,487								7,072,760
Other liabilities		400,974								385,324
Total liabilities		23,703,350								22,762,838
Shareholders' equity		3,312,977								3,106,390
Total liabilities and shareholders' equity	$	27,016,327							$	25,869,228

Net interest revenue (FTE)				$	209,761							$	201,293
Net interest-rate spread (FTE)							2.32	%							2.47	%
Net interest margin (FTE) (4)							3.37	%							3.37	%

(2)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(3)	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.
(4)	Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $344 million in 2024 and $389 million in 2023 are included in other assets for purposes of this presentation.
(5)	Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Six Months Ended June 30,

	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)	$	18,256,562		$	575,338		6.34	%	$	17,032,493		$	487,002		5.77	%
Taxable securities (3)		5,890,408			93,079		3.16			6,007,471			77,205		2.57
Tax-exempt securities (FTE) (1)(3)		364,873			4,584		2.51			395,827			5,157		2.61
Federal funds sold and other interest-earning assets		587,080			12,816		4.39			466,642			8,010		3.46
Total interest-earning assets (FTE)		25,098,923			685,817		5.49			23,902,433			577,374		4.87

Non-interest-earning assets:
Allowance for loan losses		(214,050	)							(174,716	)
Cash and due from banks		212,998								261,397
Premises and equipment		389,173								337,499
Other assets (3)		1,611,928								1,492,926
Total assets	$	27,098,972							$	25,819,539

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	5,972,065			90,121		3.03		$	4,690,798			45,196		1.94
Money market		5,966,374			104,009		3.51			5,210,457			58,546		2.27
Savings		1,176,768			1,393		0.24			1,361,357			1,240		0.18
Time		3,570,407			71,639		4.03			2,664,269			34,784		2.63
Brokered time deposits		50,333			1,084		4.33			316,470			7,312		4.66
Total interest-bearing deposits		16,735,947			268,246		3.22			14,243,351			147,078		2.08
Federal funds purchased and other borrowings		2,054			60		5.87			126,697			2,997		4.77
Federal Home Loan Bank advances		2			—		—			250,912			5,761		4.63
Long-term debt		324,854			7,538		4.67			324,721			7,670		4.76
Total borrowed funds		326,910			7,598		4.67			702,330			16,428		4.72
Total interest-bearing liabilities		17,062,857			275,844		3.25			14,945,681			163,506		2.21

Noninterest-bearing liabilities:
Noninterest-bearing deposits		6,340,783								7,383,575
Other liabilities		395,713								371,422
Total liabilities		23,799,353								22,700,678
Shareholders' equity		3,299,619								3,118,861
Total liabilities and shareholders' equity	$	27,098,972							$	25,819,539

Net interest revenue (FTE)				$	409,973							$	413,868
Net interest-rate spread (FTE)							2.24	%							2.66	%
Net interest margin (FTE) (4)							3.28	%							3.49	%

(2)	Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(3)	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.
(4)	Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $333 million in 2024 and $404 million in 2023 are included in other assets for purposes of this presentation.
(5)	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 June 30, 2024, United Community Banks, Inc. had $27.1 billion in assets, 203 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 J.D. Power’s award for best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United Community 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 “noninterest expense - operating”, “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. 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 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.

# # #

EX-99.2 4 tm2420023d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2