United Community Banks : Earnings Press Release Second Quarter 2024

For Immediate Release

For more information:

Jefferson Harralson Chief Financial Officer [phone]

[e-mail]

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.

1

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-registerfor the conference call by navigating tohttps://dpregister.com/sreg/10190532/fcfa86e478. Those without internet access or unable to pre-registermay 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.

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UNITED COMMUNITY BANKS, INC.

Selected Financial Information

(in thousands, except per share data)

											Second	For the Six Months
											Quarter		YTD
	2024			2023				Ended June 30,
					2024 -		2024 -
	Second		First		Fourth		Third		Second	2023					2023
	Quarter		Quarter		Quarter		Quarter		Quarter		Change	2024	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-taxpre-provision income (5)						(6)				(7)
$ 98,212		$ 93,734		$ 25,776		$ 90,059		$104,266		$191,946		$206,140
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	11.68	10.68	10.58	9.03	11.35				11.18	11.49
(1)(2)(3)(4)
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-taxpre-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.

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UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation (in thousands, except per share data)

																	For the Six Months Ended
		2024							2023						June 30,
		Second			First			Fourth			Third			Second
		Quarter			Quarter			Quarter			Quarter			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-taxpre-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-taxpre-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 %

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UNITED COMMUNITY BANKS, INC.

Non-GAAP Performance Measures Reconciliation (in thousands, except per share data)

												For the Six Months Ended
	2024				2023				June 30,
	Second	First		Fourth		Third		Second
	Quarter	Quarter		Quarter		Quarter		Quarter	2024			2023
Return on assets to return on assets- pre-taxpre-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-taxpre-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 %

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UNITED COMMUNITY BANKS, INC.

Financial Highlights

Loan Portfolio Composition at Period-End

		2024							2023						Linked		Year over
		Second			First			Fourth			Third			Second			Quarter			Year
(in millions)		Quarter			Quarter			Quarter			Quarter			Quarter			Change			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

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UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
		2024				2023
		Second			First			Fourth
		Quarter			Quarter			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
				Net Charge-					Net Charge-					Net Charge-
				Offs to					Offs to					Offs to
	Net Charge-		Average		Net Charge-		Average		Net Charge-		Average
(in thousands)		Offs		Loans (1)			Offs		Loans (1)			Offs		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.

7

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

			June 30,		December 31,
(in thousands, except share and per share data)			2024			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

8

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Income (Unaudited)

			Three Months Ended			Six Months Ended
			June 30,				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

9

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,

						2024								2023
			Average					Average			Average					Average
(dollars in thousands, fully taxable equivalent (FTE))		Balance			Interest		Rate			Balance			Interest		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 %

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 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
2. Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
3. Unrealized gains and losses on 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.
4. Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

10