GlobeNewswire Inc | Jul 21, 2020 04:30PM EDT

July 21, 2020

GREENVILLE, S.C., July 21, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today reported second quarter financial results, with record year-over-year loan and deposit growth. United delivered net income of $25.1 million and pre-tax pre-provision income of $65.6 million and built its allowance for credit losses with a $33.5 million provision for credit losses. Due largelyto the continued reserve build anticipating potential future loan losses driven by COVID-19 effects on the economy, diluted earnings per share of $0.32 represented a decrease of $0.23 or 42%, from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were also $0.32, also down 46% from last year. Uniteds return on assets (ROA) was 0.71% and its return on common equity was 6.2% for the quarter. On an operating basis, Uniteds ROA was 0.72% and its return on tangible common equity was 8.1%.

Chairman and CEO Lynn Harton stated, As the nation continues to grapple with the uncertainties of the future economic environment, I am pleased with the financial strength of the company and the performance of our employees, who continue to deliver for our customers. In this new world of physical distancing, the investments we have made in our digital delivery channels are being put to the test and exceeding our expectations. Customer traffic patterns suggest that our customers have significantly increased their use of our digital platform to access our products and services, as well as to open and manage their accounts. Along with our enhanced mobile app, this platform has enabled us to maintain business volume, while keeping our employees and customers physically-distanced and safe while banking. We supported our small business clients by offering loan deferrals, as needed. Additionally, our SBA team, along with other United bankers across our markets, processed nearly 11,000 applications for the SBAs Paycheck Protection Program (PPP) loans totaling $1.1 billionproviding funding for small businesses throughout our footprint. In addition to addressing the needs of our existing customers, we added approximately 4,000 new loan and deposit customers since the Program began, which has given us an even greater opportunity to serve our markets.

This quarter saw record growth with total loans increasing by $1.2 billionmainly from PPP loanshowever, non-PPP loans also grew at a 5% annualized rate. Likewise, core transaction deposits were up a record $1.7 billion over first quarter with growth in noninterest bearing deposits of $1.1 billion being the primary driver. Uniteds cost of deposits decreased 18 bps to 0.38% as a result. Net interest margin decreased 65 bps from the first quarter. Of this decrease, 18 bps was due to lower purchased loan accretion, approximately 6 bps was due to lower-yielding PPP loans, and approximately 9 bps resulted from carrying an increased amount in low-yielding overnight investments due to the record amount of liquidity generated by bank deposit growth in the quarter.

Harton continued, During the second quarter, we also completed a number of important strategic initiatives that position us well for the future. In June, we raised $200 million$100 million in preferred stock with a 6.875% annual dividend rate and $100 million in senior notes with a 5.00% annual coupon. Our long-term goal is to continue to remain a top performer in our peer group, with top quartile results in key performance metrics including capital levels. These capital raises were done to provide us with substantial flexibility to be able to both focus on our customers current needs, and at the same time, be prepared to emerge from the health crisis in a very strong position. We believe that there will be meaningful strategic growth opportunities at that point.

Immediately following quarter end, the bank announced the July 1st closing of the previously announced merger with Three Shores Bancorporation, Inc. and its bank subsidiary Seaside National Bank & Trust, which will now be branded Seaside Bank and Trust. Harton noted, We are pleased to welcome Seasides talented team of bankers and believe that our combined banks are better together. Gideon Haymaker is now Uniteds president for the State of Florida and additionally will lead our expansion of Seasides wealth management offering across Uniteds footprint.

Mr. Harton concluded, Giving back to our communities is at the core of who we are as a community bank. In keeping with that long-standing tradition, I am also pleased to announce that we recently formed the United Community Bank Foundation, a tax-exempt private foundation which will expand our charitable endeavors throughout our footprint. In the second quarter, we made a $1 million initial contribution to the foundation, which will allow us to further support our communities that have been critical to our success over the years.

Second Quarter 2020 Financial Highlights:

-- EPS decreased by 42% compared to last year on a GAAP basis and 46% on an operating basis -- Return on assets of 0.71%, or 0.72% excluding merger-related and other charges -- Pre-tax, pre-provision return on assets of 1.86%, or 1.87% excluding merger-related and other charges -- Return on common equity of 6.2% -- Return on tangible common equity of 8.1%, excluding merger-related and other charges -- United adopted the Current Expected Credit Losses (CECL) model for determining the allowance for credit losses last quarter; the continued uncertain economic outlook necessitated a provision for credit losses of $33.5 million -- Record loan production of $2.0 billion, with $1.1 billion in PPP loans and $866 million in traditional (non-PPP) loans -- Loan growth of $1.2 billion, including traditional loan growth at an annualized rate of 5% for the quarter -- Core transaction deposits were up $1.7 billion or 22%, mainly driven by noninterest bearing demand deposit growth of $1.1 billion; a significant portion of Uniteds core transaction deposit growth was attributable to PPP-related deposits -- Net interest margin of 3.42%, which was down 65 bps from first quarter, reflecting the effect of lower interest rates, lower purchased loan accretion, the impact of the lower yielding PPP loans and a much higher level of low-yielding, highly-liquid assets -- Mortgage rate locks of $802 million, which is slightly higher than last quarter and again exceeds our previous quarterly record by 58%; this compares to $390 million a year ago -- Noninterest income was up $14.4 million on a linked quarter basis, primarily due to a $15.3 million increase in mortgage income as a result of record mortgage rate locks and production, as well as an improved market environment -- Efficiency ratio of 55.86%, or 55.59% excluding merger-related and other charges -- Net charge-offs of $6.1 million, or 25 basis points as a percent of average loans, down 12 basis points from last quarter and mainly attributable to two credits that have been substandard for more than a year -- Nonperforming assets of 0.32% of total assets, which is up 4 basis points compared to March 31, 2020 -- Total deferrals of $1.8 billion or 17% of the total loan portfolio at June 30 -- Funded the United Community Bank Foundation with an initial $1 million contribution for charities and causes throughout the footprint -- Completed a public offering of $100 million aggregate of 6.875% Non-Cumulative Perpetual Preferred Stock and $100 million aggregate principal amount of 5.000% Fixed-to-Floating Senior Notes due 2030 -- Effective July 1, 2020, United completed its merger with Three Shores Bancorporation, Inc. and its bank subsidiary, Seaside National Bank & Trust

Conference Call

United will hold a conference call, Wednesday, July 22, 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 4995436. 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 Second For the Six Months Ended June Quarter 30,(in thousands, Second First Fourth Third Second 2020 - YTD2020except per Quarter Quarter Quarter Quarter Quarter 2019 2020 2019 - 2019share data) Change ChangeINCOME SUMMARY Interest $ 123,605 $ 136,547 $ 136,419 $ 140,615 $ 139,156 $ 260,152 $ 275,672 revenueInterest 14,301 17,941 19,781 21,277 21,372 32,242 42,254 expenseNet interest 109,304 118,606 116,638 119,338 117,784 (7 ) % 227,910 233,418 (2 ) %revenueProvision for 33,543 22,191 3,500 3,100 3,250 55,734 6,550 751 credit lossesNoninterest 40,238 25,814 30,183 29,031 24,531 64 66,052 45,499 45 incomeTotal revenue 115,999 122,229 143,321 145,269 139,065 (17 ) 238,228 272,367 (13 ) Expenses 83,980 81,538 81,424 82,924 81,813 3 165,518 157,897 5 Income beforeincome tax 32,019 40,691 61,897 62,345 57,252 (44 ) 72,710 114,470 (36 ) expenseIncome tax 6,923 8,807 12,885 13,983 13,167 (47 ) 15,730 26,123 (40 ) expenseNet income 25,096 31,884 49,012 48,362 44,085 (43 ) 56,980 88,347 (36 ) Merger-relatedand other 397 808 (74 ) 2,605 4,087 1,205 4,826 chargesIncome taxbenefit ofmerger-related (87 ) (182 ) 17 (600 ) (940 ) (269 ) (1,112 ) and otherchargesNet income - $ 25,406 $ 32,510 $ 48,955 $ 50,367 $ 47,232 (46 ) $ 57,916 $ 92,061 (37 ) operating ^(1) Pre-taxpre-provision $ 65,562 $ 62,882 $ 65,397 $ 65,445 $ 60,502 8 $ 128,444 $ 121,020 6 income ^(5) PERFORMANCE MEASURESPer common share:Diluted net $ 0.32 $ 0.40 $ 0.61 $ 0.60 $ 0.55 (42 ) $ 0.71 $ 1.10 (35 ) income - GAAPDiluted netincome - 0.32 0.41 0.61 0.63 0.59 (46 ) 0.73 1.15 (37 ) operating ^(1)Cash dividends 0.18 0.18 0.18 0.17 0.17 6 0.36 0.33 9 declaredBook value 21.22 20.80 20.53 20.16 19.65 8 21.22 19.65 8 Tangible book 16.95 16.52 16.28 15.90 15.38 10 16.95 15.38 10 value ^(3)Keyperformance ratios:Return oncommon equity 6.17 % 7.85 % 12.07 % 12.16 % 11.45 % 7.01 % 11.65 % - GAAP ^(2)(4)Return oncommon equity 6.25 8.01 12.06 12.67 12.27 7.13 12.14 - operating ^(1)(2)(4)Return ontangiblecommon equity 8.09 10.57 15.49 16.38 15.88 9.20 15.67 - operating ^(1)(2)(3)(4)Return onassets - GAAP 0.71 0.99 1.50 1.51 1.40 0.85 1.42 ^(4)Return onassets - 0.72 1.01 1.50 1.58 1.50 0.86 1.48 operating ^(1)(4)Return onassets -pre-tax 1.86 1.95 2.00 2.05 1.92 1.91 1.94 pre-provision^(4)(5)Return onassets -pre-taxpre-provision,excluding 1.87 1.98 2.00 2.13 2.05 1.92 2.02 merger-related andother charges^(1)(4)(5)Net interestmargin (fullytaxable 3.42 4.07 3.93 4.12 4.12 3.73 4.11 equivalent) ^(4)Efficiency 55.86 56.15 54.87 55.64 57.28 56.00 56.32 ratio - GAAPEfficiencyratio - 55.59 55.59 54.92 53.90 54.42 55.59 54.60 operating ^(1)Equity to 11.81 12.54 12.66 12.53 12.25 11.81 12.25 total assetsTangiblecommon equity 9.12 10.22 10.32 10.16 9.86 9.12 9.86 to tangibleassets ^(3) ASSET QUALITY Nonperforming $ 48,021 $ 36,208 $ 35,341 $ 30,832 $ 26,597 81 $ 48,021 $ 26,597 81 loansForeclosed 477 475 476 102 75 536 477 75 536 propertiesTotalnonperforming 48,498 36,683 35,817 30,934 26,672 82 48,498 26,672 82 assets("NPAs")Allowance forcredit losses 103,669 81,905 62,089 62,514 62,204 67 103,669 62,204 67 - loansNet 6,149 8,114 3,925 2,723 2,438 152 14,263 5,568 156 charge-offsAllowance forcredit losses 1.02 % 0.92 % 0.70 % 0.70 % 0.70 % 1.02 0.70 % - loans toloansNetcharge-offs to 0.25 0.37 0.18 0.12 0.11 0.31 0.13 average loans^(4)NPAs to loansand foreclosed 0.48 0.41 0.41 0.35 0.30 0.48 0.30 propertiesNPAs to total 0.32 0.28 0.28 0.24 0.21 0.32 0.21 assets AVERAGEBALANCES ($ in millions)Loans $ 9,773 $ 8,829 $ 8,890 $ 8,836 $ 8,670 13 $ 9,301 $ 8,551 9 Investment 2,408 2,520 2,486 2,550 2,674 (10 ) 2,464 2,778 (11 ) securitiesEarning assets 12,958 11,798 11,832 11,568 11,534 12 12,378 11,516 7 Total assets 14,173 12,944 12,946 12,681 12,608 12 13,558 12,559 8 Deposits 12,071 10,915 10,924 10,531 10,493 15 11,493 10,427 10 Shareholders? 1,686 1,653 1,623 1,588 1,531 10 1,670 1,505 11 equityCommon shares- basic 78,920 79,340 79,659 79,663 79,673 (1 ) 79,130 79,739 (1 ) (thousands)Common shares- diluted 78,924 79,446 79,669 79,667 79,678 (1 ) 79,186 79,745 (1 ) (thousands) AT PERIOD END($ in millions)Loans $ 10,133 $ 8,935 $ 8,813 $ 8,903 $ 8,838 15 $ 10,133 $ 8,838 15 Investment 2,432 2,540 2,559 2,515 2,620 (7 ) 2,432 2,620 (7 ) securitiesTotal assets 15,005 13,086 12,916 12,809 12,779 17 15,005 12,779 17 Deposits 12,702 11,035 10,897 10,757 10,591 20 12,702 10,591 20 Shareholders? 1,772 1,641 1,636 1,605 1,566 13 1,772 1,566 13 equityCommon sharesoutstanding 78,335 78,284 79,014 78,974 79,075 (1 ) 78,335 79,075 (1 ) (thousands)

(1) Excludes merger-related and other charges which includes termination of pension plan in the third quarter of 2019, executive retirement charges in the second quarter of 2019 and amortization of certain executive change of control benefits. (2) Net income 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.

UNITEDCOMMUNITY BANKS, INC.Non-GAAP Performance Measures ReconciliationSelectedFinancial Information 2020 2019 For the Six Months Ended June 30, Second First Fourth Third Second (in thousands,except per Quarter Quarter Quarter Quarter Quarter 2020 2019share data) Expense reconciliationExpenses $ 83,980 $ 81,538 $ 81,424 $ 82,924 $ 81,813 $ 165,518 $ 157,897 (GAAP)Merger-relatedand other (397 ) (808 ) 74 (2,605 ) (4,087 ) (1,205 ) (4,826 ) chargesExpenses - $ 83,583 $ 80,730 $ 81,498 $ 80,319 $ 77,726 $ 164,313 $ 153,071 operating Net income tooperating incomereconciliationNet income $ 25,096 $ 31,884 $ 49,012 $ 48,362 $ 44,085 $ 56,980 $ 88,347 (GAAP)Merger-relatedand other 397 808 (74 ) 2,605 4,087 1,205 4,826 chargesIncome taxbenefit ofmerger-related (87 ) (182 ) 17 (600 ) (940 ) (269 ) (1,112 ) and otherchargesNet income - $ 25,406 $ 32,510 $ 48,955 $ 50,367 $ 47,232 $ 57,916 $ 92,061 operating Net income topre-taxpre-provision incomereconciliationNet income $ 25,096 $ 31,884 $ 49,012 $ 48,362 $ 44,085 $ 56,980 $ 88,347 (GAAP)Income tax 6,923 8,807 12,885 13,983 13,167 15,730 26,123 expenseProvision for 33,543 22,191 3,500 3,100 3,250 55,734 6,550 credit lossesPre-taxpre-provision $ 65,562 $ 62,882 $ 65,397 $ 65,445 $ 60,502 $ 128,444 $ 121,020 income Diluted incomeper common sharereconciliationDiluted incomeper common $ 0.32 $ 0.40 $ 0.61 $ 0.60 $ 0.55 $ 0.71 $ 1.10 share (GAAP)Merger-relatedand other ? 0.01 ? 0.03 0.04 0.02 0.05 charges, netof taxDiluted incomeper common $ 0.32 $ 0.41 $ 0.61 $ 0.63 $ 0.59 $ 0.73 $ 1.15 share -operating Book value percommon share reconciliationBook value percommon share $ 21.22 $ 20.80 $ 20.53 $ 20.16 $ 19.65 $ 21.22 $ 19.65 (GAAP)Effect ofgoodwill and (4.27 ) (4.28 ) (4.25 ) (4.26 ) (4.27 ) (4.27 ) (4.27 ) otherintangiblesTangible bookvalue per $ 16.95 $ 16.52 $ 16.28 $ 15.90 $ 15.38 $ 16.95 $ 15.38 common share Return ontangible common equityreconciliationReturn oncommon equity 6.17 % 7.85 % 12.07 % 12.16 % 11.45 % 7.01 % 11.65 %(GAAP)Merger-relatedand other 0.08 0.16 (0.01 ) 0.51 0.82 0.12 0.49 charges, netof taxReturn oncommon equity 6.25 8.01 12.06 12.67 12.27 7.13 12.14 - operatingEffect ofgoodwill and 1.84 2.56 3.43 3.71 3.61 2.07 3.53 otherintangiblesReturn ontangible 8.09 % 10.57 % 15.49 % 16.38 % 15.88 % 9.20 % 15.67 %common equity- operating Return onassets reconciliationReturn on 0.71 % 0.99 % 1.50 % 1.51 % 1.40 % 0.85 % 1.42 %assets (GAAP)Merger-relatedand other 0.01 0.02 ? 0.07 0.10 0.01 0.06 charges, netof taxReturn onassets - 0.72 % 1.01 % 1.50 % 1.58 % 1.50 % 0.86 % 1.48 %operating Return onassets toreturn onassets- pre-taxpre-provisionreconciliationReturn on 0.71 % 0.99 % 1.50 % 1.51 % 1.40 % 0.85 % 1.42 %assets (GAAP)Income tax 0.20 0.27 0.39 0.44 0.42 0.23 0.41 expenseProvision for 0.95 0.69 0.11 0.10 0.10 0.83 0.11 credit lossesReturn onassets - 1.86 1.95 2.00 2.05 1.92 1.91 1.94 pre-tax,pre-provisionMerger-relatedand other 0.01 0.03 ? 0.08 0.13 0.01 0.08 chargesReturn onassets -pre-taxpre-provision, 1.87 % 1.98 % 2.00 % 2.13 % 2.05 % 1.92 % 2.02 %excludingmerger-relatedand othercharges Efficiencyratio reconciliationEfficiency 55.86 % 56.15 % 54.87 % 55.64 % 57.28 % 56.00 % 56.32 %ratio (GAAP)Merger-relatedand other (0.27 ) (0.56 ) 0.05 (1.74 ) (2.86 ) (0.41 ) (1.72 ) chargesEfficiencyratio - 55.59 % 55.59 % 54.92 % 53.90 % 54.42 % 55.59 % 54.60 %operating Tangiblecommon equityto tangible assetsreconciliationEquity tototal assets 11.81 % 12.54 % 12.66 % 12.53 % 12.25 % 11.81 % 12.25 %(GAAP)Effect ofgoodwill and (2.05 ) (2.32 ) (2.34 ) (2.37 ) (2.39 ) (2.05 ) (2.39 ) otherintangiblesEffect ofpreferred (0.64 ) ? ? ? ? (0.64 ) ? equityTangiblecommon equity 9.12 % 10.22 % 10.32 % 10.16 % 9.86 % 9.12 % 9.86 %to tangibleassets

UNITED COMMUNITY BANKS, INC.Financial Highlights Loan PortfolioComposition at Period-End 2020 2019 Linked Year over(in Second First Fourth Third Second Quarter Yearmillions) Quarter Quarter Quarter Quarter Quarter Change ChangeLOANS BY CATEGORYOwneroccupied $ 1,760 $ 1,703 $ 1,720 $ 1,692 $ 1,658 $ 57 $ 102 commercialREIncomeproducing 2,178 2,065 2,008 1,934 1,939 113 239 commercialRECommercial & 1,219 1,310 1,221 1,271 1,299 (91 ) (80 )industrialPaycheckprotection 1,095 ? ? ? ? 1,095 1,095 programCommercial 946 959 976 1,001 983 (13 ) (37 )constructionEquipment 779 761 745 729 674 18 105 financingTotal 7,976 6,798 6,670 6,627 6,553 1,178 1,423 commercialResidential 1,152 1,128 1,118 1,121 1,108 24 44 mortgageHome equitylines of 654 668 661 669 675 (14 ) (21 )creditResidential 230 216 236 229 219 14 11 constructionConsumer 121 125 128 257 283 (4 ) (162 )Total loans $ 10,133 $ 8,935 $ 8,813 $ 8,903 $ 8,838 $ 1,198 $ 1,295 LOANS BY MARKETNorth $ 951 $ 958 $ 967 $ 1,002 $ 1,002 (7 ) (51 )GeorgiaAtlanta 1,852 1,820 1,762 1,740 1,745 32 107 North 1,171 1,124 1,156 1,117 1,084 47 87 CarolinaCoastal 618 604 631 611 604 14 14 GeorgiaGainesville 233 235 246 246 244 (2 ) (11 )East 433 425 421 435 446 8 (13 )TennesseeSouth 1,778 1,774 1,708 1,705 1,674 4 104 CarolinaCommercialBanking 3,097 1,995 1,922 1,916 1,884 1,102 1,213 SolutionsIndirect ? ? ? 131 155 ? (155 )autoTotal loans $ 10,133 $ 8,935 $ 8,813 $ 8,903 $ 8,838 $ 1,198 $ 1,295

UNITED COMMUNITY BANKS, INC.Financial Highlights Credit Quality 2020 2019 (in thousands) Second First Fourth Quarter Quarter QuarterNONACCRUAL LOANS Owner occupied RE $ 10,710 $ 10,405 $ 10,544 Income producing RE 11,274 2,235 1,996 Commercial & 3,432 3,169 2,545 industrialCommercial 2,290 1,724 2,277 constructionEquipment financing 3,119 2,439 3,141 Total commercial 30,825 19,972 20,503 Residential mortgage 13,185 12,458 10,567 Home equity lines of 3,138 3,010 3,173 creditResidential 500 540 939 constructionConsumer 373 228 159 Total $ 48,021 $ 36,208 $ 35,341

2020 2019 Second Quarter First Quarter Fourth Quarter Net Net Net Net Charge- Net Charge- Net Charge-(in thousands) Charge- Offs to Charge- Offs to Charge- Offs to Offs Average Offs Average Offs Average Loans^ Loans^ Loans^ (1) (1) (1)NETCHARGE-OFFS BY CATEGORYOwner occupied $ (466 ) (0.11 ) % $ (1,028 ) (0.24 ) % $ (208 ) (0.05 ) %REIncome 4,548 0.86 270 0.05 95 0.02 producing RECommercial & (37 ) (0.01 ) 7,185 2.30 1,809 0.58 industrialCommercial 122 0.05 (141 ) (0.06 ) (140 ) (0.06 ) constructionEquipment 1,665 0.87 1,507 0.81 1,550 0.84 financingTotal 5,832 0.31 7,793 0.47 3,106 0.19 commercialResidential (6 ) ? 9 ? 89 0.03 mortgageHome equitylines of (98 ) (0.06 ) (83 ) (0.05 ) 198 0.12 creditResidential (5 ) (0.01 ) (12 ) (0.02 ) (24 ) (0.04 ) constructionConsumer 426 1.39 407 1.30 556 0.90 Total $ 6,149 0.25 $ 8,114 0.37 $ 3,925 0.18 ^(1) Annualized.

UNITED COMMUNITY BANKS, INC.Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share June 30, December 31, data) 2020 2019ASSETS Cash and due from banks $ 125,255 $ 125,844 Interest-bearing deposits in banks 1,203,706 389,362 Cash and cash equivalents 1,328,961 515,206 Debt securities available-for-sale 2,125,209 2,274,581 Debt securities held-to-maturity (fair 306,638 283,533 value $320,253 and $287,904)Loans held for sale at fair value 99,477 58,484 Loans and leases held for investment 10,132,510 8,812,553 Less allowance for credit losses - loans (103,669 ) (62,089 ) and leasesLoans and leases, net 10,028,841 8,750,464 Premises and equipment, net 211,972 215,976 Bank owned life insurance 200,699 202,664 Accrued interest receivable 37,774 32,660 Net deferred tax asset 27,362 34,059 Derivative financial instruments 94,434 35,007 Goodwill and other intangible assets, net 340,220 342,247 Other assets 203,300 171,135 Total assets $ 15,004,887 $ 12,916,016 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $ 4,689,545 $ 3,477,979 NOW and interest-bearing demand 2,582,831 2,461,895 Money market 2,621,158 2,230,628 Savings 832,529 706,467 Time 1,751,091 1,859,574 Brokered 224,931 160,701 Total deposits 12,702,085 10,897,244 Long-term debt 311,631 212,664 Derivative financial instruments 24,685 15,516 Accrued expenses and other liabilities 194,841 154,900 Total liabilities 13,233,242 11,280,324 Shareholders' equity: Preferred stock; $1 par value; 10,000,000shares authorized; Series I, $25,000 per share liquidation 96,660 ? preference; 4,000 shares issued andoutstandingCommon stock, $1 par value; 150,000,000shares authorized; 78,335 79,014 78,335,127 and 79,013,729 shares issuedand outstandingCommon stock issuable; 596,785 and 664,640 10,646 11,491 sharesCapital surplus 1,480,464 1,496,641 Retained earnings 64,990 40,152 Accumulated other comprehensive income 40,550 8,394 Total shareholders' equity 1,771,645 1,635,692 Total liabilities and shareholders' equity $ 15,004,887 $ 12,916,016

UNITED COMMUNITY BANKS, INC.Consolidated Statements of Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30,(in thousands, except 2020 2019 2020 2019 per share data)Interest revenue: Loans, including fees $ 107,862 $ 119,671 $ 225,925 $ 234,930 Investmentsecurities, includingtax exempt of $1,570, 15,615 19,076 33,009 39,894 $1,122, $3,093 and$2,291Deposits in banks andshort-term 128 409 1,218 848 investmentsTotal interest 123,605 139,156 260,152 275,672 revenue Interest expense: Deposits: NOW andinterest-bearing 1,628 3,460 4,606 7,069 demandMoney market 3,421 4,842 7,952 8,974 Savings 39 42 74 74 Time 6,183 8,771 13,714 16,955 Deposits 11,271 17,115 26,346 33,072 Short-term borrowings ? 248 1 409 Federal Home Loan ? 752 1 2,174 Bank advancesLong-term debt 3,030 3,257 5,894 6,599 Total interest 14,301 21,372 32,242 42,254 expenseNet interest revenue 109,304 117,784 227,910 233,418 Provision for credit 33,543 3,250 55,734 6,550 lossesNet interest revenueafter provision for 75,761 114,534 172,176 226,868 credit losses Noninterest income: Service charges and 6,995 9,060 15,633 17,513 feesMortgage loan gainsand other related 23,659 5,344 31,969 9,092 feesBrokerage fees 1,324 1,588 2,964 2,925 Gains from sales of 1,040 1,470 2,714 2,773 other loans, netSecurities gains ? 149 ? (118 ) (losses), netOther 7,220 6,920 12,772 13,314 Total noninterest 40,238 24,531 66,052 45,499 incomeTotal revenue 115,999 139,065 238,228 272,367 Noninterest expenses: Salaries and employee 51,811 48,157 103,169 95,660 benefitsCommunications and 6,556 6,222 12,502 12,010 equipmentOccupancy 5,945 5,919 11,659 11,503 Advertising and 2,260 1,596 3,534 2,882 public relationsPostage, printing and 1,613 1,529 3,283 3,115 suppliesProfessional fees 4,823 4,054 8,920 7,215 Lending and loan 3,189 2,619 5,482 4,953 servicing expenseOutside services - 1,796 1,558 3,628 3,167 electronic bankingFDIC assessments andother regulatory 1,558 1,547 3,042 3,257 chargesAmortization of 987 1,342 2,027 2,635 intangiblesMerger-related and 397 3,894 1,205 4,440 other chargesOther 3,045 3,376 7,067 7,060 Total noninterest 83,980 81,813 165,518 157,897 expensesNet income before 32,019 57,252 72,710 114,470 income taxesIncome tax expense 6,923 13,167 15,730 26,123 Net income $ 25,096 $ 44,085 $ 56,980 $ 88,347 Net income availableto common $ 24,913 $ 43,769 $ 56,554 $ 87,716 shareholders Net income per common share:Basic $ 0.32 $ 0.55 $ 0.71 $ 1.10 Diluted 0.32 0.55 0.71 1.10 Weighted averagecommon shares outstanding:Basic 78,920 79,673 79,130 79,739 Diluted 78,924 79,678 79,186 79,745

Average Consolidated Balance Sheets and Net Interest AnalysisFor the Three Months Ended June 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 $ 9,772,703 $ 107,398 4.42 % $ 8,669,847 $ 119,668 5.54 % (FTE) ^(1)(2)Taxable securities^ 2,229,371 14,045 2.52 2,506,942 17,954 2.86 (3)Tax-exemptsecurities (FTE) ^ 178,903 2,110 4.72 166,628 1,507 3.62 (1)(3)Federal funds soldand other 776,776 857 0.44 190,678 679 1.42 interest-earningassetsTotalinterest-earning 12,957,753 124,410 3.86 11,534,095 139,808 4.86 assets (FTE) Noninterest-earning assets:Allowance for (89,992 ) (62,716 ) credit lossesCash and due from 138,842 125,021 banksPremises and 217,096 224,018 equipmentOther assets ^(3) 949,201 787,859 Total assets $ 14,172,900 $ 12,608,277 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 2,444,895 1,628 0.27 $ 2,190,080 3,460 0.63 demandMoney market 2,541,805 3,421 0.54 2,186,282 4,842 0.89 Savings 788,247 39 0.02 687,753 42 0.02 Time 1,805,671 6,058 1.35 1,773,968 6,949 1.57 Brokered time 130,556 125 0.39 298,553 1,822 2.45 depositsTotalinterest-bearing 7,711,174 11,271 0.59 7,136,636 17,115 0.96 depositsFederal fundspurchased and other 1 ? ? 38,838 248 2.56 borrowingsFederal Home Loan ? ? ? 117,912 752 2.56 Bank advancesLong-term debt 228,096 3,030 5.34 252,351 3,257 5.18 Total borrowed 228,097 3,030 5.34 409,101 4,257 4.17 fundsTotalinterest-bearing 7,939,271 14,301 0.72 7,545,737 21,372 1.14 liabilities Noninterest-bearing liabilities:Noninterest-bearing 4,360,095 3,355,930 depositsOther liabilities 187,375 175,806 Total liabilities 12,486,741 11,077,473 Shareholders' 1,686,159 1,530,804 equityTotal liabilitiesand shareholders' $ 14,172,900 $ 12,608,277 equity Net interest $ 110,109 $ 118,436 revenue (FTE)Net interest-rate 3.14 % 3.72 % spread (FTE)Net interest margin 3.42 % 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 $66.3 million in 2020 and unrealized gains of $5.00 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 Six Months Ended June 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 $ 9,300,792 $ 225,194 4.87 % $ 8,550,574 $ 235,015 5.54 % (FTE) ^(1)(2)Taxable securities ^ 2,293,502 29,916 2.61 2,609,400 37,603 2.88 (3)Tax-exemptsecurities (FTE)^ 170,578 4,155 4.87 168,156 3,077 3.66 (1)(3)Federal funds soldand other 612,776 2,489 0.81 188,165 1,297 1.38 interest-earningassetsTotalinterest-earning 12,377,648 261,754 4.25 11,516,295 276,992 4.84 assets (FTE) Non-interest-earning assets:Allowance for loan (79,885 ) (62,253 ) lossesCash and due from 133,548 124,414 banksPremises and 218,170 220,335 equipmentOther assets ^(3) 908,828 759,899 Total assets $ 13,558,309 $ 12,558,690 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 2,428,815 4,606 0.38 $ 2,238,083 7,069 0.64 demandMoney market 2,441,264 7,952 0.66 2,142,411 8,974 0.84 Savings 750,179 74 0.02 680,018 74 0.02 Time 1,823,612 13,308 1.47 1,701,181 12,285 1.46 Brokered time 105,689 406 0.77 389,794 4,670 2.42 depositsTotalinterest-bearing 7,549,559 26,346 0.70 7,151,487 33,072 0.93 depositsFederal fundspurchased and other 199 1 1.01 30,241 409 2.73 borrowingsFederal Home Loan 83 1 2.42 170,636 2,174 2.57 Bank advancesLong-term debt 220,429 5,894 5.38 257,134 6,599 5.18 Total borrowed funds 220,711 5,896 5.37 458,011 9,182 4.04 Totalinterest-bearing 7,770,270 32,242 0.83 7,609,498 42,254 1.12 liabilities Noninterest-bearing liabilities:Noninterest-bearing 3,943,740 3,275,612 depositsOther liabilities 174,781 169,048 Total liabilities 11,888,791 11,054,158 Shareholders' equity 1,669,518 1,504,532 Total liabilitiesand shareholders' $ 13,558,309 $ 12,558,690 equity Net interest revenue $ 229,512 $ 234,738 (FTE)Net interest-rate 3.42 % 3.72 % spread (FTE)Net interest margin 3.73 % 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 $59.6 million in 2020 and unrealized losses of $10.4 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 $15.0 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee at June 30, 2020. Through its July 1st acquisition of Three Shores Bancorporation and its wholly-owned banking subsidiary, Seaside National Bank & Trust, United added approximately $2.1 billion in assets and 14 banking offices in key metropolitan markets throughout Florida. United Community Bank, Uniteds wholly-owned bank subsidiary, specializes in personalized community banking services for individuals, small businesses and companies throughout its geographic footprint, now 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 now 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