GlobeNewswire Inc | Apr 20, 2021 04:30PM EDT

April 20, 2021

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

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

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

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

First Quarter 2021 Financial Highlights:

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

Conference Call

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

UNITED COMMUNITY BANKS, INC.Selected Financial Information

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

INCOME SUMMARY Interest $ 141,542 $ 156,071 $ 141,773 $ 123,605 $ 136,547 revenueInterest 9,478 10,676 13,319 14,301 17,941 expenseNet interest 132,064 145,395 128,454 109,304 118,606 11 %revenue(Release of)provision for (12,281 ) 2,907 21,793 33,543 22,191 credit lossesNoninterest 44,705 41,375 48,682 40,238 25,814 73 incomeTotal revenue 189,050 183,863 155,343 115,999 122,229 55 Expenses 95,194 106,490 95,981 83,980 81,538 17 Income beforeincome tax 93,856 77,373 59,362 32,019 40,691 131 expenseIncome tax 20,150 17,871 11,755 6,923 8,807 129 expenseNet income 73,706 59,502 47,607 25,096 31,884 131 Merger-relatedand other 1,543 2,452 3,361 397 808 chargesIncome taxbenefit ofmerger-related (335 ) (552 ) (519 ) (87 ) (182 ) and otherchargesNet income - $ 74,914 $ 61,402 $ 50,449 $ 25,406 $ 32,510 130 operating^ (1) Pre-taxpre-provision $ 81,575 $ 80,280 $ 81,155 $ 65,562 $ 62,882 30 income ^(5) PERFORMANCE MEASURESPer common share:Diluted net $ 0.82 $ 0.66 $ 0.52 $ 0.32 $ 0.40 105 income - GAAPDiluted netincome - 0.83 0.68 0.55 0.32 0.41 102 operating ^(1)Cash dividends 0.19 0.18 0.18 0.18 0.18 6 declaredBook value 22.15 21.90 21.45 21.22 20.80 6 Tangible book 17.83 17.56 17.09 16.95 16.52 8 value^ (3)Keyperformance ratios:Return oncommon equity 15.37 % 12.36 % 10.06 % 6.17 % 7.85 % - GAAP ^(2)(4)Return oncommon equity 15.63 12.77 10.69 6.25 8.01 - operating ^(1)(2)(4)Return ontangiblecommon equity 19.68 16.23 13.52 8.09 10.57 - operating ^(1)(2)(3)(4)Return onassets - GAAP 1.62 1.30 1.07 0.71 0.99 ^(4)Return onassets - 1.65 1.34 1.14 0.72 1.01 operating ^(1)(4)Return onassets -pre-tax 1.80 1.77 1.86 1.86 1.95 pre-provision^(4)(5)Return onassets -pre-taxpre-provision,excluding 1.83 1.82 1.93 1.87 1.98 merger-relatedand othercharges ^(1)(4)(5)Net interestmargin (fullytaxable 3.22 3.55 3.27 3.42 4.07 equivalent) ^(4)Efficiency 53.55 56.73 54.14 55.86 56.15 ratio - GAAPEfficiencyratio - 52.68 55.42 52.24 55.59 55.59 operating ^(1)Equity to 10.95 11.29 11.47 11.81 12.54 total assetsTangiblecommon equity 8.57 8.81 8.89 9.12 10.22 to tangibleassets ^(3) ASSET QUALITY Nonperforming $ 55,900 $ 61,599 $ 49,084 $ 48,021 $ 36,208 54 loansForeclosed 596 647 953 477 475 propertiesTotalnonperforming 56,496 62,246 50,037 48,498 36,683 54 assets("NPAs")Allowance forcredit losses 126,866 137,010 134,256 103,669 81,905 55 - loansNet (305 ) 1,515 2,538 6,149 8,114 charge-offsAllowance forcredit losses 1.09 % 1.20 % 1.14 % 1.02 % 0.92 % - loans toloansNetcharge-offs to (0.01 ) 0.05 0.09 0.25 0.37 average loans^(4)NPAs to loansand foreclosed 0.48 0.55 0.42 0.48 0.41 propertiesNPAs to total 0.30 0.35 0.29 0.32 0.28 assets AVERAGEBALANCES ($ in millions)Loans $ 11,433 $ 11,595 $ 11,644 $ 9,773 $ 8,829 29 Investment 3,991 3,326 2,750 2,408 2,520 58 securitiesEarning assets 16,782 16,394 15,715 12,958 11,798 42 Total assets 18,023 17,698 17,013 14,173 12,944 39 Deposits 15,366 15,057 14,460 12,071 10,915 41 Shareholders? 2,025 1,994 1,948 1,686 1,653 23 equityCommon shares- basic 87,322 87,258 87,129 78,920 79,340 10 (thousands)Common shares- diluted 87,466 87,333 87,205 78,924 79,446 10 (thousands) AT PERIOD END($ in millions)Loans $ 11,679 $ 11,371 $ 11,799 $ 10,133 $ 8,935 31 Investment 4,332 3,645 3,089 2,432 2,540 71 securitiesTotal assets 18,557 17,794 17,153 15,005 13,086 42 Deposits 15,993 15,232 14,603 12,702 11,035 45 Shareholders? 2,031 2,008 1,967 1,772 1,641 24 equityCommon sharesoutstanding 86,777 86,675 86,611 78,335 78,284 11 (thousands)

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

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

2021 2020(in thousands, First Fourth Third Second Firstexcept per Quarter Quarter Quarter Quarter Quartershare data) Expense reconciliationExpenses $ 95,194 $ 106,490 $ 95,981 $ 83,980 $ 81,538 (GAAP)Merger-relatedand other (1,543 ) (2,452 ) (3,361 ) (397 ) (808 ) chargesExpenses - $ 93,651 $ 104,038 $ 92,620 $ 83,583 $ 80,730 operating Net income reconciliationNet income $ 73,706 $ 59,502 $ 47,607 $ 25,096 $ 31,884 (GAAP)Merger-relatedand other 1,543 2,452 3,361 397 808 chargesIncome taxbenefit ofmerger-related (335 ) (552 ) (519 ) (87 ) (182 ) and otherchargesNet income - $ 74,914 $ 61,402 $ 50,449 $ 25,406 $ 32,510 operating Net income topre-taxpre-provision incomereconciliationNet income $ 73,706 $ 59,502 $ 47,607 $ 25,096 $ 31,884 (GAAP)Income tax 20,150 17,871 11,755 6,923 8,807 expense(Release of)provision for (12,281 ) 2,907 21,793 33,543 22,191 credit lossesPre-taxpre-provision $ 81,575 $ 80,280 $ 81,155 $ 65,562 $ 62,882 income Diluted incomeper common sharereconciliationDiluted incomeper common $ 0.82 $ 0.66 $ 0.52 $ 0.32 $ 0.40 share (GAAP)Merger-relatedand other 0.01 0.02 0.03 ? 0.01 charges, netof taxDiluted incomeper common $ 0.83 $ 0.68 $ 0.55 $ 0.32 $ 0.41 share -operating Book value percommon share reconciliationBook value percommon share $ 22.15 $ 21.90 $ 21.45 $ 21.22 $ 20.80 (GAAP)Effect ofgoodwill and (4.32 ) (4.34 ) (4.36 ) (4.27 ) (4.28 ) otherintangiblesTangible bookvalue per $ 17.83 $ 17.56 $ 17.09 $ 16.95 $ 16.52 common share Return ontangible common equityreconciliationReturn oncommon equity 15.37 % 12.36 % 10.06 % 6.17 % 7.85 %(GAAP)Merger-relatedand other 0.26 0.41 0.63 0.08 0.16 charges, netof taxReturn oncommon equity 15.63 12.77 10.69 6.25 8.01 - operatingEffect ofgoodwill and 4.05 3.46 2.83 1.84 2.56 otherintangiblesReturn ontangible 19.68 % 16.23 % 13.52 % 8.09 % 10.57 %common equity- operating Return onassets reconciliationReturn on 1.62 % 1.30 % 1.07 % 0.71 % 0.99 %assets (GAAP)Merger-relatedand other 0.03 0.04 0.07 0.01 0.02 charges, netof taxReturn onassets - 1.65 % 1.34 % 1.14 % 0.72 % 1.01 %operating Return onassets toreturn onassets- pre-taxpre-provisionreconciliationReturn on 1.62 % 1.30 % 1.07 % 0.71 % 0.99 %assets (GAAP)Income tax 0.46 0.40 0.28 0.20 0.27 expense(Release of)provision for (0.28 ) 0.07 0.51 0.95 0.69 credit lossesReturn onassets - 1.80 1.77 1.86 1.86 1.95 pre-tax,pre-provisionMerger-relatedand other 0.03 0.05 0.07 0.01 0.03 chargesReturn onassets -pre-taxpre-provision, 1.83 % 1.82 % 1.93 % 1.87 % 1.98 %excludingmerger-relatedand othercharges Efficiencyratio reconciliationEfficiency 53.55 % 56.73 % 54.14 % 55.86 % 56.15 %ratio (GAAP)Merger-relatedand other (0.87 ) (1.31 ) (1.90 ) (0.27 ) (0.56 ) chargesEfficiencyratio - 52.68 % 55.42 % 52.24 % 55.59 % 55.59 %operating Tangiblecommon equityto tangible assetsreconciliationEquity tototal assets 10.95 % 11.29 % 11.47 % 11.81 % 12.54 %(GAAP)Effect ofgoodwill and (1.86 ) (1.94 ) (2.02 ) (2.05 ) (2.32 ) otherintangiblesEffect ofpreferred (0.52 ) (0.54 ) (0.56 ) (0.64 ) ? equityTangiblecommon equity 8.57 % 8.81 % 8.89 % 9.12 % 10.22 %to tangibleassets

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

2021 2020 Linked Year over(in millions) First Fourth Third Second First Quarter Year Quarter Quarter Quarter Quarter Quarter Change ChangeLOANS BY CATEGORY Owner occupied $ 2,107 $ 2,090 $ 2,009 $ 1,759 $ 1,703 $ 17 $ 404 commercial REIncome producing 2,599 2,541 2,493 2,178 2,065 58 534 commercial RECommercial & 1,760 1,853 1,788 1,219 1,310 (93 ) 450 industrialPaycheck protection 883 646 1,317 1,095 ? 237 883 programCommercial 960 967 987 946 959 (7 ) 1 constructionEquipment financing 913 864 823 779 761 49 152 Total commercial 9,222 8,961 9,417 7,976 6,798 261 2,424 Residential mortgage 1,362 1,285 1,270 1,152 1,128 77 234 Home equity lines of 679 697 707 654 668 (18 ) 11 creditResidential 272 281 257 230 216 (9 ) 56 constructionConsumer 144 147 148 121 125 (3 ) 19 Total loans $ 11,679 $ 11,371 $ 11,799 $ 10,133 $ 8,935 $ 308 $ 2,744 LOANS BY MARKET^ (1) North Georgia $ 982 $ 955 $ 945 $ 951 $ 958 $ 27 $ 24 Atlanta 1,953 1,889 1,853 1,852 1,820 64 133 North Carolina 1,326 1,281 1,246 1,171 1,124 45 202 Coastal Georgia 597 617 614 618 604 (20 ) (7 ) Gainesville 222 224 229 233 235 (2 ) (13 ) East Tennessee 398 415 420 433 425 (17 ) (27 ) South Carolina 1,997 1,947 1,870 1,778 1,774 50 223 Florida 1,160 1,435 1,453 ? ? (275 ) 1,160 Commercial Banking 3,044 2,608 3,169 3,097 1,995 436 1,049 SolutionsTotal loans $ 11,679 $ 11,371 $ 11,799 $ 10,133 $ 8,935 $ 308 $ 2,744

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

UNITED COMMUNITY BANKS, INC.Financial HighlightsCredit Quality

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

2021 2020 First Quarter Fourth Quarter Third Quarter Net Net Net(in Net Charge-Offs Net Charge-Offs Net Charge-Offsthousands) Charge-Offs to Average Charge-Offs to Average Charge-Offs to Average Loans^ (1) Loans^ (1) Loans^ (1)NETCHARGE-OFFS BY CATEGORYOwner $ (240 ) (0.05 ) % $ (277 ) (0.05 ) % $ (725 ) (0.14 ) %occupied REIncome 991 0.16 (1,718 ) (0.27 ) 1,785 0.29 producing RECommercial & (2,753 ) (0.44 ) 2,294 0.33 (105 ) (0.01 ) industrialCommercial 22 0.01 (129 ) (0.05 ) (171 ) (0.07 ) constructionEquipment 1,511 0.70 1,595 0.75 1,993 0.93 financingTotal (469 ) (0.02 ) 1,765 0.08 2,777 0.12 commercialResidential 92 0.03 (25 ) (0.01 ) (35 ) (0.01 ) mortgageHome equitylines of (73 ) (0.04 ) (151 ) (0.09 ) (125 ) (0.07 ) creditResidential (60 ) (0.09 ) (47 ) (0.07 ) ? ? constructionConsumer 205 0.58 (27 ) (0.07 ) (79 ) (0.22 ) Total $ (305 ) (0.01 ) $ 1,515 0.05 $ 2,538 0.09 ^(1) Annualized.

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

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

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

Three Months Ended March 31,(in thousands, except per share data) 2021 2020Interest revenue: Loans, including fees $ 125,726 $ 118,063 Investment securities, including tax exempt of 15,448 17,394 $2,150 and $1,523, respectivelyDeposits in banks and short-term investments 368 1,090 Total interest revenue 141,542 136,547 Interest expense: Deposits: NOW and interest-bearing demand 1,486 2,978 Money market 1,804 4,531 Savings 49 35 Time 1,880 7,531 Deposits 5,219 15,075 Short-term borrowings ? 1 Federal Home Loan Bank advances 2 1 Long-term debt 4,257 2,864 Total interest expense 9,478 17,941 Net interest revenue 132,064 118,606 (Release of) provision for credit losses (12,281 ) 22,191 Net interest revenue after provision for credit 144,345 96,415 losses Noninterest income: Service charges and fees 7,570 8,638 Mortgage loan gains and other related fees 22,572 8,310 Wealth management fees 3,505 1,640 Gains from sales of other loans, net 1,030 1,674 Other 10,028 5,552 Total noninterest income 44,705 25,814 Total revenue 189,050 122,229 Noninterest expenses: Salaries and employee benefits 60,585 51,358 Communications and equipment 7,203 5,946 Occupancy 6,956 5,714 Advertising and public relations 1,199 1,274 Postage, printing and supplies 1,822 1,670 Professional fees 4,234 4,097 Lending and loan servicing expense 2,877 2,293 Outside services - electronic banking 2,218 1,832 FDIC assessments and other regulatory charges 1,896 1,484 Amortization of intangibles 985 1,040 Merger-related and other charges 1,543 808 Other 3,676 4,022 Total noninterest expenses 95,194 81,538 Net income before income taxes 93,856 40,691 Income tax expense 20,150 8,807 Net income 73,706 31,884 Preferred stock dividends 1,719 ? Undistributed earnings allocated to participating 462 243 securitiesNet income available to common shareholders $ 71,525 $ 31,641 Net income per common share: Basic $ 0.82 $ 0.40 Diluted 0.82 0.40 Weighted average common shares outstanding: Basic 87,322 79,340 Diluted 87,466 79,446

Average Consolidated Balance Sheets and Net Interest AnalysisFor the Three Months Ended March 31, 2021 2020(dollars inthousands, fully Average Interest Average Average Interest Averagetaxable equivalent Balance Rate Balance Rate(FTE))Assets: Interest-earning assets:Loans, net ofunearned income $ 11,432,908 $ 125,122 4.44 % $ 8,828,880 $ 117,796 5.37 %(FTE) ^(1)(2)Taxable securities^ 3,686,405 13,298 1.44 2,357,635 15,871 2.69 (3)Tax-exemptsecurities (FTE) ^ 304,983 2,888 3.79 162,253 2,045 5.04 (1)(3)Federal funds soldand other 1,357,890 1,222 0.36 448,775 1,632 1.46 interest-earningassetsTotalinterest-earning 16,782,186 142,530 3.44 11,797,543 137,344 4.68 assets (FTE) Noninterest-earning assets:Allowance for (143,703 ) (69,777 ) credit lossesCash and due from 140,292 128,254 banksPremises and 221,411 219,243 equipmentOther assets ^(3) 1,023,275 868,452 Total assets $ 18,023,461 $ 12,943,715 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 3,331,043 1,486 0.18 $ 2,412,733 2,978 0.50 demandMoney market 3,732,988 1,804 0.20 2,340,723 4,531 0.78 Savings 989,584 49 0.02 712,110 35 0.02 Time 1,642,423 1,588 0.39 1,841,552 7,250 1.58 Brokered time 75,259 292 1.57 80,821 281 1.40 depositsTotalinterest-bearing 9,771,297 5,219 0.22 7,387,939 15,075 0.82 depositsFederal fundspurchased and other 12 ? ? 396 1 1.02 borrowingsFederal Home Loan 3,333 2 0.24 165 1 2.44 Bank advancesLong-term debt 317,172 4,257 5.44 212,762 2,864 5.41 Total borrowed 320,517 4,259 5.39 213,323 2,866 5.40 fundsTotalinterest-bearing 10,091,814 9,478 0.38 7,601,262 17,941 0.95 liabilities Noninterest-bearing liabilities:Noninterest-bearing 5,594,394 3,527,385 depositsOther liabilities 312,610 162,187 Total liabilities 15,998,818 11,290,834 Shareholders' 2,024,643 1,652,881 equityTotal liabilitiesand shareholders' $ 18,023,461 $ 12,943,715 equity Net interest $ 133,052 $ 119,403 revenue (FTE)Net interest-rate 3.06 % 3.73 %spread (FTE)Net interest margin 3.22 % 4.07 %(FTE) ^(4)

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

About United Community Banks, Inc.

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

Non-GAAP Financial Measures

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as operating net income, pre-tax, pre-provision income, operating net income per diluted common share, operating earnings per share, tangible book value per common share, operating return on common equity, operating return on tangible common equity, operating return on assets, return on assets - pre-tax, pre-provision, excluding merger-related and other charges, return on assets - pre-tax, pre-provision, operating efficiency ratio, and tangible common equity to tangible assets. These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating 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