GlobeNewswire Inc | Oct 20, 2020 05:00PM EDT

October 20, 2020

GREENVILLE, S.C., Oct. 20, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported third quarter financial results, including solid year-over-year loan and deposit growth and record operating efficiency. United delivered net income of $47.6 million and pre-tax pre-provision income of $81.2 million. Diluted earnings per share of $0.52 for the quarter represented a decrease of $0.08 or 13%, from a year ago. This decline is largely due to an increase in credit loss provisioning associated with loan growth and the acquisition of Seaside National Bank & Trust (Seaside) along with net interest margin declines largely driven by declines in market interest rates. Compared to the second quarter, diluted earnings per share were up by $0.20 or 63%. Excluding merger-related and other charges, diluted operating earnings per share were $0.55, also down 13% from last year, but up $0.23 per share or 72% compared to second quarter. Uniteds GAAP return on assets (ROA) was 1.07% and its return on common equity was 10.1% for the quarter. On an operating basis, Uniteds ROA was 1.14% and its return on tangible common equity was 13.5%. On a pre-tax, pre-provision basis, and excluding merger-related and other charges, ROA was 1.93%.

Chairman and CEO Lynn Harton stated, While the future economic and operating environment remains uncertain, I am pleased with the financial strength and resilience of the company and the dedication of our employees who consistently provide outstanding customer service. Our markets continue to recover from the economic effects of the pandemic and I am pleased to report that loan payment deferrals have declined from a peak of $1.9 billion, or 15.9% of the total loan portfolio at June 30, 2020 to $365 million, or 3.1% of the total loan portfolio at September 30, 2020.

Harton continued, Our acquisition of Seaside, which closed on July 1st, positions us well in attractive Florida markets and we are pleased with the talent of the Seaside team and the deep relationships they have built with their clients. We plan to pilot Seasides high net worth offering of asset management and trust services in select markets of Uniteds footprint in the late fourth quarter. Additionally, we have made solid progress on the business integration and are already moving forward with additional products, including mortgage, middle market, commercial real estate, SBA, asset-based and non-profit lending, to compliment Seasides product offerings. We are proud to welcome Seaside to the United team.

Total loans increased by $1.7 billion during the quarterprimarily driven by the acquisition of Seaside. Excluding the effects of the acquisition, core organic loan growth was 8% annualized. Core transaction deposits grew by $1.7 billion during the quarter, with $1.3 billion resulting from the Seaside acquisition, supplemented by approximately $400 million in organic growth. Uniteds cost of deposits decreased by 13 basis points to 0.25%. The net interest margin decreased 15 basis points from the second quarter due to a combination of factors, including lower overall market rates.

Mr. Harton concluded, We are focused on our long-term goal of remaining a top performer in our peer group. While this is a difficult environment in which to forecast future economic conditions, we are encouraged by increasing business activity in our markets and stable credit performance in our portfolio to date. Our strong balance sheet position gives us the ability to continue to support our customers and communities, and we believe we will be well positioned to be able to take advantage of expansion opportunities in the future.

Third Quarter 2020 Financial Highlights:

-- EPS decreased by 13% compared to last year on both a GAAP and operating basis; compared to second quarter, EPS increased by 63% on a GAAP basis and 72% on an operating basis -- Return on assets of 1.07%, or 1.14% excluding merger-related and other charges -- Pre-tax, pre-provision return on assets of 1.86%, or 1.93% excluding merger-related and other charges -- Return on common equity of 10.1% -- Return on tangible common equity of 13.5%, excluding merger-related and other charges -- A provision for credit losses of $21.8 million of which $10.7 million is attributable to establishing an allowance for credit losses for Seasides acquired loans -- Loan production of $1.0 billion and loan growth of $1.7 billion with $1.4 billion attributable to loans acquired from Seaside and core loan growth at an annualized rate of 8% for the quarter -- Core transaction deposits were up $1.7 billion with $1.3 billion attributable to Seaside and approximately $400 million in organic growth, which represents a 15% annualized growth rate for the quarter -- Net interest margin of 3.27% was down 15 basis points from the second quarter, reflecting the low rate environment, the Seaside acquisition, and increasing balance sheet liquidity -- Record mortgage rate locks of $910 million, which is $108 million or 13% higher than the previous record set in the second quarter; this compares to $508 million a year ago -- Noninterest income was up $7.7 million on a linked quarter basis, excluding net securities gains; Seaside contributed nearly $2.5 million of the increase and mortgage loan and related fees were up $1.5 million, primarily driven by record mortgage rate locks and production -- Efficiency ratio of 54.1%, or a record low 52.2% excluding merger-related and other charges -- Net charge-offs of $2.5 million, or 9 basis points as a percent of average loans, down 16 basis points from in the second quarter -- Nonperforming assets of 0.29% of total assets, which is down 3 basis points compared to June 30, 2020 -- Total deferrals of $365 million or 3% of the total loan portfolio compared to $1.9 billion or 16% in the second quarter -- $500,000 of funding for the United Community Bank Foundation, adding to the initial $1 million contribution in the second quarter for charities and causes throughout the footprint

Conference Call

United will hold a conference call, Wednesday, October 21, 2020, 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 7466997. The conference call also will be webcast and available for replay for 30 days by selecting Events & Presentations within the Investor Relations section of Uniteds website at www.ucbi.com.

UNITEDCOMMUNITY BANKS, INC.SelectedFinancial Information 2020 2019 Third For the Nine Months Ended Quarter September 30,(in thousands, 2020 - YTDexcept per Third Second First Fourth Third 2019 2020 2019 2020 -share data) Quarter Quarter Quarter Quarter Quarter Change 2019 ChangeINCOME SUMMARY Interest $ 141,773 $ 123,605 $ 136,547 $ 136,419 $ 140,615 $ 401,925 $ 416,287 revenueInterest 13,319 14,301 17,941 19,781 21,277 45,561 63,531 expenseNet interest 128,454 109,304 118,606 116,638 119,338 8 % 356,364 352,756 1 %revenueProvision for 21,793 33,543 22,191 3,500 3,100 77,527 9,650 credit lossesNoninterest 48,682 40,238 25,814 30,183 29,031 68 114,734 74,530 54 incomeTotal revenue 155,343 115,999 122,229 143,321 145,269 7 393,571 417,636 (6 )Expenses 95,981 83,980 81,538 81,424 82,924 16 261,499 240,821 9 Income beforeincome tax 59,362 32,019 40,691 61,897 62,345 (5 ) 132,072 176,815 (25 )expenseIncome tax 11,755 6,923 8,807 12,885 13,983 (16 ) 27,485 40,106 (31 )expenseNet income 47,607 25,096 31,884 49,012 48,362 (2 ) 104,587 136,709 (23 )Merger-relatedand other 3,361 397 808 (74 ) 2,605 4,566 7,431 chargesIncome taxbenefit ofmerger-related (519 ) (87 ) (182 ) 17 (600 ) (788 ) (1,712 ) and otherchargesNet income - $ 50,449 $ 25,406 $ 32,510 $ 48,955 $ 50,367 ? $ 108,365 $ 142,428 (24 )operating ^(1) Pre-taxpre-provision $ 81,155 $ 65,562 $ 62,882 $ 65,397 $ 65,445 24 $ 209,599 $ 186,465 12 income ^(5) PERFORMANCE MEASURESPer common share:Diluted net $ 0.52 $ 0.32 $ 0.40 $ 0.61 $ 0.60 (13 ) $ 1.25 $ 1.70 (26 )income - GAAPDiluted netincome - 0.55 0.32 0.41 0.61 0.63 (13 ) 1.29 1.77 (27 )operating ^(1)Cash dividends 0.18 0.18 0.18 0.18 0.17 6 0.54 0.50 8 declaredBook value 21.45 21.22 20.80 20.53 20.16 6 21.45 20.16 6 Tangible book 17.09 16.95 16.52 16.28 15.90 7 17.09 15.90 7 value ^(3)Keyperformance ratios:Return oncommon equity 10.06 % 6.17 % 7.85 % 12.07 % 12.16 % 8.11 % 11.83 % - GAAP ^(2)(4)Return oncommon equity 10.69 6.25 8.01 12.06 12.67 8.40 12.32 - operating ^(1)(2)(4)Return ontangiblecommon equity 13.52 8.09 10.57 15.49 16.38 10.76 15.92 - operating ^(1)(2)(3)(4)Return onassets - GAAP 1.07 0.71 0.99 1.50 1.51 0.93 1.45 ^(4)Return onassets - 1.14 0.72 1.01 1.50 1.58 0.97 1.51 operating ^(1)(4)Return onassets -pre-tax 1.86 1.86 1.95 2.00 2.05 1.89 1.98 pre-provision^(4)(5)Return onassets -pre-taxpre-provision,excluding 1.93 1.87 1.98 2.00 2.13 1.93 2.06 merger-relatedand othercharges ^(1)(4)(5)Net interestmargin (fullytaxable 3.27 3.42 4.07 3.93 4.12 3.55 4.11 equivalent) ^(4)Efficiency 54.14 55.86 56.15 54.87 55.64 55.30 56.09 ratio - GAAPEfficiencyratio - 52.24 55.59 55.59 54.92 53.90 54.34 54.36 operating ^(1)Equity to 11.47 11.81 12.54 12.66 12.53 11.47 12.53 total assetsTangiblecommon equity 8.89 9.12 10.22 10.32 10.16 8.89 10.16 to tangibleassets ^(3) ASSET QUALITY Nonperforming $ 49,084 $ 48,021 $ 36,208 $ 35,341 $ 30,832 59 $ 49,084 $ 30,832 59 loansForeclosed 953 477 475 476 102 953 102 propertiesTotalnonperforming 50,037 48,498 36,683 35,817 30,934 62 50,037 30,934 62 assets("NPAs")Allowance forcredit losses 134,256 103,669 81,905 62,089 62,514 115 134,256 62,514 115 - loansNet 2,538 6,149 8,114 3,925 2,723 (7 ) 16,801 8,291 103 charge-offsAllowance forcredit losses 1.14 % 1.02 % 0.92 % 0.70 % 0.70 % 1.14 % 0.70 % - loans toloansNetcharge-offs to 0.09 0.25 0.37 0.18 0.12 0.22 0.13 average loans^(4)NPAs to loansand foreclosed 0.42 0.48 0.41 0.41 0.35 0.42 0.35 propertiesNPAs to total 0.29 0.32 0.28 0.28 0.24 0.29 0.24 assets AVERAGEBALANCES ($ in millions)Loans $ 11,644 $ 9,773 $ 8,829 $ 8,890 $ 8,836 32 $ 10,088 $ 8,647 17 Investment 2,750 2,408 2,520 2,486 2,550 8 2,560 2,701 (5 )securitiesEarning assets 15,715 12,958 11,798 11,832 11,568 36 13,498 11,534 17 Total assets 17,013 14,173 12,944 12,946 12,681 34 14,718 12,600 17 Deposits 14,460 12,071 10,915 10,924 10,531 37 12,490 10,462 19 Shareholders? 1,948 1,686 1,653 1,623 1,588 23 1,763 1,533 15 equityCommon shares- basic 87,129 78,920 79,340 79,659 79,663 9 81,815 79,714 3 (thousands)Common shares- diluted 87,205 78,924 79,446 79,669 79,667 9 81,876 79,718 3 (thousands) AT PERIOD END($ in millions)Loans $ 11,799 $ 10,133 $ 8,935 $ 8,813 $ 8,903 33 $ 11,799 $ 8,903 33 Investment 3,089 2,432 2,540 2,559 2,515 23 3,089 2,515 23 securitiesTotal assets 17,153 15,005 13,086 12,916 12,809 34 17,153 12,809 34 Deposits 14,603 12,702 11,035 10,897 10,757 36 14,603 10,757 36 Shareholders? 1,967 1,772 1,641 1,636 1,605 23 1,967 1,605 23 equityCommon sharesoutstanding 86,611 78,335 78,284 79,014 78,974 10 86,611 78,974 10 (thousands) ^(1) Excludes merger-related and other charges which includes termination ofpension plan in the third quarter of 2019, executive retirement charges in thesecond quarter of 2019 and amortization of certain executive change of controlbenefits. ^(2) Net income divided by average realized common equity, whichexcludes accumulated other comprehensive income (loss). ^(3) Excludes effect ofacquisition related intangibles and associated amortization. ^(4) Annualized. ^(5) Excludes income tax expense and provision for credit losses.

UNITEDCOMMUNITY BANKS, INC.Non-GAAP Performance Measures ReconciliationSelectedFinancial Information 2020 2019 For the Nine Months Ended September 30, Third Second First Fourth Third (in thousands,except per Quarter Quarter Quarter Quarter Quarter 2020 2019share data) Expense reconciliationExpenses $ 95,981 $ 83,980 $ 81,538 $ 81,424 $ 82,924 $ 261,499 $ 240,821 (GAAP)Merger-relatedand other (3,361 ) (397 ) (808 ) 74 (2,605 ) (4,566 ) (7,431 ) chargesExpenses - $ 92,620 $ 83,583 $ 80,730 $ 81,498 $ 80,319 $ 256,933 $ 233,390 operating Net income tooperating incomereconciliationNet income $ 47,607 $ 25,096 $ 31,884 $ 49,012 $ 48,362 $ 104,587 $ 136,709 (GAAP)Merger-relatedand other 3,361 397 808 (74 ) 2,605 4,566 7,431 chargesIncome taxbenefit ofmerger-related (519 ) (87 ) (182 ) 17 (600 ) (788 ) (1,712 ) and otherchargesNet income - $ 50,449 $ 25,406 $ 32,510 $ 48,955 $ 50,367 $ 108,365 $ 142,428 operating Net income topre-taxpre-provision incomereconciliationNet income $ 47,607 $ 25,096 $ 31,884 $ 49,012 $ 48,362 $ 104,587 $ 136,709 (GAAP)Income tax 11,755 6,923 8,807 12,885 13,983 27,485 40,106 expenseProvision for 21,793 33,543 22,191 3,500 3,100 77,527 9,650 credit lossesPre-taxpre-provision $ 81,155 $ 65,562 $ 62,882 $ 65,397 $ 65,445 $ 209,599 $ 186,465 income Diluted incomeper common sharereconciliationDiluted incomeper common $ 0.52 $ 0.32 $ 0.40 $ 0.61 $ 0.60 $ 1.25 $ 1.70 share (GAAP)Merger-relatedand other 0.03 ? 0.01 ? 0.03 0.04 0.07 charges, netof taxDiluted incomeper common $ 0.55 $ 0.32 $ 0.41 $ 0.61 $ 0.63 $ 1.29 $ 1.77 share -operating Book value percommon share reconciliationBook value percommon share $ 21.45 $ 21.22 $ 20.80 $ 20.53 $ 20.16 $ 21.45 $ 20.16 (GAAP)Effect ofgoodwill and (4.36 ) (4.27 ) (4.28 ) (4.25 ) (4.26 ) (4.36 ) (4.26 ) otherintangiblesTangible bookvalue per $ 17.09 $ 16.95 $ 16.52 $ 16.28 $ 15.90 $ 17.09 $ 15.90 common share Return ontangible common equityreconciliationReturn oncommon equity 10.06 % 6.17 % 7.85 % 12.07 % 12.16 % 8.11 % 11.83 %(GAAP)Merger-relatedand other 0.63 0.08 0.16 (0.01 ) 0.51 0.29 0.49 charges, netof taxReturn oncommon equity 10.69 6.25 8.01 12.06 12.67 8.40 12.32 - operatingEffect ofgoodwill and 2.83 1.84 2.56 3.43 3.71 2.36 3.60 otherintangiblesReturn ontangible 13.52 % 8.09 % 10.57 % 15.49 % 16.38 % 10.76 % 15.92 %common equity- operating Return onassets reconciliationReturn on 1.07 % 0.71 % 0.99 % 1.50 % 1.51 % 0.93 % 1.45 %assets (GAAP)Merger-relatedand other 0.07 0.01 0.02 ? 0.07 0.04 0.06 charges, netof taxReturn onassets - 1.14 % 0.72 % 1.01 % 1.50 % 1.58 % 0.97 % 1.51 %operating Return onassets toreturn onassets- pre-taxpre-provisionreconciliationReturn on 1.07 % 0.71 % 0.99 % 1.50 % 1.51 % 0.93 % 1.45 %assets (GAAP)Income tax 0.28 0.20 0.27 0.39 0.44 0.26 0.43 expenseProvision for 0.51 0.95 0.69 0.11 0.10 0.70 0.10 credit lossesReturn onassets - 1.86 1.86 1.95 2.00 2.05 1.89 1.98 pre-tax,pre-provisionMerger-relatedand other 0.07 0.01 0.03 ? 0.08 0.04 0.08 chargesReturn onassets -pre-taxpre-provision, 1.93 % 1.87 % 1.98 % 2.00 % 2.13 % 1.93 % 2.06 %excludingmerger-relatedand othercharges Efficiencyratio reconciliationEfficiency 54.14 % 55.86 % 56.15 % 54.87 % 55.64 % 55.30 % 56.09 %ratio (GAAP)Merger-relatedand other (1.90 ) (0.27 ) (0.56 ) 0.05 (1.74 ) (0.96 ) (1.73 ) chargesEfficiencyratio - 52.24 % 55.59 % 55.59 % 54.92 % 53.90 % 54.34 % 54.36 %operating Tangiblecommon equityto tangible assetsreconciliationEquity tototal assets 11.47 % 11.81 % 12.54 % 12.66 % 12.53 % 11.47 % 12.53 %(GAAP)Effect ofgoodwill and (2.02 ) (2.05 ) (2.32 ) (2.34 ) (2.37 ) (2.02 ) (2.37 ) otherintangiblesEffect ofpreferred (0.56 ) (0.64 ) ? ? ? (0.56 ) ? equityTangiblecommon equity 8.89 % 9.12 % 10.22 % 10.32 % 10.16 % 8.89 % 10.16 %to tangibleassets

UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End 2020 2019 Linked Year over(in millions) Third Second First Fourth Third Quarter Year Quarter Quarter Quarter Quarter Quarter Change ChangeLOANS BY CATEGORY Owner occupied $ 2,009 $ 1,759 $ 1,703 $ 1,720 $ 1,692 $ 250 $ 317 commercial REIncome producing 2,493 2,178 2,065 2,008 1,934 315 559 commercial RECommercial & 1,788 1,219 1,310 1,221 1,271 569 517 industrialPaycheck protection 1,317 1,095 ? ? ? 222 1,317 programCommercial 987 946 959 976 1,001 41 (14 ) constructionEquipment financing 823 779 761 745 729 44 94 Total commercial 9,417 7,976 6,798 6,670 6,627 1,441 2,790 Residential mortgage 1,270 1,152 1,128 1,118 1,121 118 149 Home equity lines of 707 654 668 661 669 53 38 creditResidential 257 230 216 236 229 27 28 constructionConsumer 148 121 125 128 257 27 (109 ) Total loans $ 11,799 $ 10,133 $ 8,935 $ 8,813 $ 8,903 $ 1,666 $ 2,896 LOANS BY MARKET North Georgia $ 945 $ 951 $ 958 $ 967 $ 1,002 $ (6 ) $ (57 ) Atlanta 1,853 1,852 1,820 1,762 1,740 1 113 North Carolina 1,246 1,171 1,124 1,156 1,117 75 129 Coastal Georgia 614 618 604 631 611 (4 ) 3 Gainesville 229 233 235 246 246 (4 ) (17 ) East Tennessee 420 433 425 421 435 (13 ) (15 ) South Carolina 1,870 1,778 1,774 1,708 1,705 92 165 Florida 1,453 ? ? ? ? 1,453 1,453 Commercial Banking 3,169 3,097 1,995 1,922 1,916 72 1,253 SolutionsIndirect auto ? ? ? ? 131 ? (131 ) Total loans $ 11,799 $ 10,133 $ 8,935 $ 8,813 $ 8,903 $ 1,666 $ 2,896



UNITED COMMUNITY BANKS, INC.Financial Highlights Credit Quality 2020 (in thousands) Third Second First Quarter Quarter QuarterNONACCRUAL LOANS Owner occupied RE $ 11,075 $ 10,710 $ 10,405 Income producing RE 12,230 11,274 2,235 Commercial & 3,534 3,432 3,169 industrialCommercial 1,863 2,290 1,724 constructionEquipment financing 3,137 3,119 2,439 Total commercial 31,839 30,825 19,972 Residential mortgage 13,864 13,185 12,458 Home equity lines of 2,642 3,138 3,010 creditResidential 479 500 540 constructionConsumer 260 373 228 Total $ 49,084 $ 48,021 $ 36,208 2020 Third Quarter Second Quarter First Quarter Net Charge- Net Net Offs to Charge- Charge-(in thousands) Net Charge- Average Net Charge- Offs to Net Charge- Offs to Offs Loans^ Offs Average Offs Average (1) Loans^ Loans^ (1) (1)NET CHARGE-OFFS BY CATEGORYOwner occupied RE $ (725 ) (0.14 ) % $ (466 ) (0.11 ) % $ (1,028 ) (0.24 ) %Income producing RE 1,785 0.29 4,548 0.86 270 0.05 Commercial & (105 ) (0.01 ) (37 ) (0.01 ) 7,185 2.30 industrialCommercial (171 ) (0.07 ) 122 0.05 (141 ) (0.06 ) constructionEquipment financing 1,993 0.93 1,665 0.87 1,507 0.81 Total commercial 2,777 0.12 5,832 0.31 7,793 0.47 Residential mortgage (35 ) (0.01 ) (6 ) ? 9 ? Home equity lines of (125 ) (0.07 ) (98 ) (0.06 ) (83 ) (0.05 ) creditResidential ? ? (5 ) (0.01 ) (12 ) (0.02 ) constructionConsumer (79 ) (0.22 ) 426 1.39 407 1.30 Total $ 2,538 0.09 $ 6,149 0.25 $ 8,114 0.37 ^(1) Annualized.

UNITED COMMUNITY BANKS, INC.Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share September 30, December 31,data) 2020 2019ASSETS Cash and due from banks $ 122,048 $ 125,844 Interest-bearing deposits in banks 923,591 389,362 Cash and cash equivalents 1,045,639 515,206 Debt securities available-for-sale 2,690,448 2,274,581 Debt securities held-to-maturity (fair value 398,373 283,533 $413,820 and $287,904)Loans held for sale at fair value 128,587 58,484 Loans and leases held for investment 11,798,910 8,812,553 Less allowance for credit losses - loans and (134,256 ) (62,089 )leasesLoans and leases, net 11,664,654 8,750,464 Premises and equipment, net 211,885 215,976 Bank owned life insurance 201,515 202,664 Accrued interest receivable 48,091 32,660 Net deferred tax asset 39,818 34,059 Derivative financial instruments 103,388 35,007 Goodwill and other intangible assets, net 384,074 342,247 Other assets 236,405 171,135 Total assets $ 17,152,877 $ 12,916,016 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $ 5,227,170 $ 3,477,979 NOW and interest-bearing demand 2,989,455 2,461,895 Money market 3,399,793 2,230,628 Savings 891,147 706,467 Time 1,819,586 1,859,574 Brokered 276,225 160,701 Total deposits 14,603,376 10,897,244 Long-term debt 326,703 212,664 Derivative financial instruments 33,519 15,516 Accrued expenses and other liabilities 222,024 154,900 Total liabilities 15,185,622 11,280,324 Shareholders' equity: Preferred stock; $1 par value; 10,000,000shares authorized; Series I, $25,000 per share liquidation 96,422 ? preference; 4,000 shares issued andoutstandingCommon stock, $1 par value; 150,000,000shares authorized; 86,611 79,014 86,611,114 and 79,013,729 shares issued andoutstandingCommon stock issuable; 590,521 and 664,640 10,632 11,491 sharesCapital surplus 1,637,467 1,496,641 Retained earnings 94,938 40,152 Accumulated other comprehensive income 41,185 8,394 Total shareholders' equity 1,967,255 1,635,692 Total liabilities and shareholders' equity $ 17,152,877 $ 12,916,016

UNITED COMMUNITY BANKS, INC.Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30,(in thousands, except 2020 2019 2020 2019 per share data)Interest revenue: Loans, including fees $ 126,936 $ 122,645 $ 352,861 $ 357,575 Investmentsecurities, includingtax exempt of $1,895, 14,558 17,744 47,567 57,638 $1,118, $4,988 and$3,409Deposits in banks andshort-term 279 226 1,497 1,074 investmentsTotal interest 141,773 140,615 401,925 416,287 revenue Interest expense: Deposits: NOW andinterest-bearing 1,634 3,214 6,240 10,283 demandMoney market 3,017 5,126 10,969 14,100 Savings 47 41 121 115 Time 4,300 8,732 18,014 25,687 Deposits 8,998 17,113 35,344 50,185 Short-term borrowings 2 429 3 838 Federal Home Loan 27 521 28 2,695 Bank advancesLong-term debt 4,292 3,214 10,186 9,813 Total interest 13,319 21,277 45,561 63,531 expenseNet interest revenue 128,454 119,338 356,364 352,756 Provision for credit 21,793 3,100 77,527 9,650 lossesNet interest revenueafter provision for 106,661 116,238 278,837 343,106 credit losses Noninterest income: Service charges and 8,260 9,916 23,893 27,429 feesMortgage loan gainsand other related 25,144 8,658 57,113 17,750 feesBrokerage and wealth 3,055 1,699 6,019 4,624 management feesGains from sales of 1,175 1,639 3,889 4,412 other loans, netSecurities gains 746 ? 746 (118 ) (losses), netOther 10,302 7,119 23,074 20,433 Total noninterest 48,682 29,031 114,734 74,530 incomeTotal revenue 155,343 145,269 393,571 417,636 Noninterest expenses: Salaries and employee 59,067 50,501 162,236 146,161 benefitsCommunications and 6,960 6,223 19,462 18,233 equipmentOccupancy 7,050 5,921 18,709 17,424 Advertising and 1,778 1,374 5,312 4,256 public relationsPostage, printing and 1,703 1,618 4,986 4,733 suppliesProfessional fees 5,083 4,715 14,003 11,930 Lending and loan 3,043 2,556 8,525 7,509 servicing expenseOutside services - 1,888 1,934 5,516 5,101 electronic bankingFDIC assessments andother regulatory 1,346 314 4,388 3,571 chargesAmortization of 1,099 1,210 3,126 3,845 intangiblesMerger-related and 3,361 2,541 4,566 6,981 other chargesOther 3,603 4,017 10,670 11,077 Total noninterest 95,981 82,924 261,499 240,821 expensesNet income before 59,362 62,345 132,072 176,815 income taxesIncome tax expense 11,755 13,983 27,485 40,106 Net income 47,607 48,362 104,587 136,709 Preferred stock 1,814 ? 1,814 ? dividendsDividends andundistributed 356 351 779 982 earnings allocated tounvested sharesNet income availableto common $ 45,437 $ 48,011 $ 101,994 $ 135,727 shareholders Net income per common share:Basic $ 0.52 $ 0.60 $ 1.25 $ 1.70 Diluted 0.52 0.60 1.25 1.70 Weighted averagecommon shares outstanding:Basic 87,129 79,663 81,815 79,714 Diluted 87,205 79,667 81,876 79,718

Average Consolidated Balance Sheets and Net Interest AnalysisFor the Three Months Ended September 30, 2020 2019 (dollars inthousands, fully Average Interest Average Average Interest Average taxable equivalent Balance Rate Balance Rate(FTE))Assets: Interest-earning assets:Loans, net ofunearned income $ 11,644,202 $ 126,342 4.32 % $ 8,835,585 $ 122,526 5.50 % (FTE) ^(1)(2)Taxable securities^ 2,499,649 12,663 2.03 2,379,927 16,626 2.79 (3)Tax-exemptsecurities (FTE) ^ 249,959 2,544 4.07 170,027 1,502 3.53 (1)(3)Federal funds soldand other 1,321,445 1,132 0.34 182,935 616 1.35 interest-earningassetsTotalinterest-earning 15,715,255 142,681 3.61 11,568,474 141,270 4.85 assets (FTE) Noninterest-earning assets:Allowance for (128,581 ) (63,474 ) credit lossesCash and due from 135,949 116,922 banksPremises and 216,326 221,930 equipmentOther assets ^(3) 1,074,529 836,951 Total assets $ 17,013,478 $ 12,680,803 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 2,890,735 1,634 0.22 $ 2,123,910 3,214 0.60 demandMoney market 3,501,781 3,017 0.34 2,277,162 5,126 0.89 Savings 864,849 47 0.02 695,297 41 0.02 Time 1,933,764 4,127 0.85 1,879,801 8,053 1.70 Brokered time 96,198 173 0.72 102,078 679 2.64 depositsTotalinterest-bearing 9,287,327 8,998 0.39 7,078,248 17,113 0.96 depositsFederal fundspurchased and other 4,405 2 0.18 73,733 429 2.31 borrowingsFederal Home Loan 2,818 27 3.81 88,261 521 2.34 Bank advancesLong-term debt 327,017 4,292 5.22 243,935 3,214 5.23 Total borrowed 334,240 4,321 5.14 405,929 4,164 4.07 fundsTotalinterest-bearing 9,621,567 13,319 0.55 7,484,177 21,277 1.13 liabilities Noninterest-bearing liabilities:Noninterest-bearing 5,172,999 3,453,174 depositsOther liabilities 270,451 155,107 Total liabilities 15,065,017 11,092,458 Shareholders' 1,948,461 1,588,345 equityTotal liabilitiesand shareholders' $ 17,013,478 $ 12,680,803 equity Net interest $ 129,362 $ 119,993 revenue (FTE)Net interest-rate 3.06 % 3.72 % spread (FTE)Net interest margin 3.27 % 4.12 % (FTE) ^(4)

(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 $77.0 million in 2020 and unrealized gains of $35.1 million in 2019 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.

Average Consolidated Balance Sheets and Net Interest AnalysisFor the Nine Months Ended September 30, 2020 2019 (dollars inthousands, fully Average Interest Average Average Interest Average taxable equivalent Balance Rate Balance Rate(FTE))Assets: Interest-earning assets:Loans, net ofunearned income $ 10,087,630 $ 351,536 4.65 % $ 8,646,622 $ 357,541 5.53 % (FTE) ^(1)(2)Taxable securities ^ 2,362,674 42,579 2.40 2,532,070 54,229 2.86 (3)Tax-exemptsecurities (FTE)^ 197,231 6,699 4.53 168,787 4,579 3.62 (1)(3)Federal funds soldand other 850,722 3,621 0.57 186,402 1,913 1.37 interest-earningassetsTotalinterest-earning 13,498,257 404,435 4.00 11,533,881 418,262 4.85 assets (FTE) Non-interest-earning assets:Allowance for loan (96,235 ) (62,664 ) lossesCash and due from 134,354 121,889 banksPremises and 217,551 220,872 equipmentOther assets ^(3) 964,511 785,862 Total assets $ 14,718,438 $ 12,599,840 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 2,583,911 6,240 0.32 $ 2,199,607 10,283 0.63 demandMoney market 2,797,350 10,969 0.52 2,187,822 14,100 0.86 Savings 788,681 121 0.02 685,167 115 0.02 Time 1,860,597 17,435 1.25 1,761,374 20,338 1.54 Brokered time 102,502 579 0.75 292,835 5,349 2.44 depositsTotalinterest-bearing 8,133,041 35,344 0.58 7,126,805 50,185 0.94 depositsFederal fundspurchased and other 1,611 3 0.25 44,898 838 2.50 borrowingsFederal Home Loan 1,001 28 3.74 142,876 2,695 2.52 Bank advancesLong-term debt 256,218 10,186 5.31 252,686 9,813 5.19 Total borrowed funds 258,830 10,217 5.27 440,460 13,346 4.05 Totalinterest-bearing 8,391,871 45,561 0.73 7,567,265 63,531 1.12 liabilities Noninterest-bearing liabilities:Noninterest-bearing 4,356,484 3,335,450 depositsOther liabilities 206,904 164,350 Total liabilities 12,955,259 11,067,065 Shareholders' equity 1,763,179 1,532,775 Total liabilitiesand shareholders' $ 14,718,438 $ 12,599,840 equity Net interest revenue $ 358,874 $ 354,731 (FTE)Net interest-rate 3.27 % 3.73 % spread (FTE)Net interest margin 3.55 % 4.11 % (FTE) ^(4)

(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 $65.5 million in 2020 and unrealized gains of $4.94 million in 2019 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) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $17.2 billion in assets, and 163 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee. United Community Bank, Uniteds wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, including Florida under the brand Seaside Bank and Trust. Services include a full range of consumer and commercial banking products, including mortgage, advisory, treasury management, and wealth management. Respected national research firms consistently recognize United for outstanding customer service. 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. Forbes included United in its inaugural list of the Worlds Best Banks in 2019 and again in 2020. Forbes also recognized United on its 2020 list of the 100 Best Banks in America for the seventh consecutive year. United also received five Greenwich Excellence Awards in 2019 for excellence in Small Business Banking and Middle Market Banking, including a national award for Overall Satisfaction in Small Business Banking. 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 Uniteds 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 HarralsonChief Financial Officer(864) 240-6208Jefferson_Harralson@ucbi.com