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

July 20, 2021

GREENVILLE, S.C., July 20, 2021 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the second quarter was $70.3 million and pre-tax, pre-provision income was $78.7 million. Diluted earnings per share of $0.78 for the quarter represented an increase of $0.46 or 144%, from the second quarter a year ago, and represented a decrease of $0.04 or 5% from the first quarter of 2021. On an operating basis, Uniteds diluted earnings per share of $0.79 was up 147% over the year ago quarter. Uniteds GAAP return on assets (ROA) was 1.46% and its return on common equity was 14.1% for the quarter. On an operating basis, Uniteds ROA was 1.48% and its return on tangible common equity was 17.8%. On a pre-tax, pre-provision basis, operating return on assets was 1.67% for the quarter. The quarter benefited from an allowance release of $13.6 million, reflecting continued improvement in economic conditions and forecasts in Uniteds markets.

Chairman and CEO Lynn Harton stated, This has been an outstanding quarter for United. Our team once again was recognized by JD Power as having the Best Retail Customer Satisfaction in the Southeast. On July 6, we closed on the acquisition of FinTrust, accelerating our wealth management strategy. We announced expansion into two of the strongest markets in the Southeast, Charlotte and Nashville, via agreements to acquire outstanding community banks in those markets. In addition to these strategic accomplishments, our bankers continued to deliver strong performance results. Core loan growth, excluding PPP loans, was solid and we continue to be optimistic about the remainder of the year, given the momentum in our markets. Core deposit growth remains very strong. Credit results were excellent as well. I couldnt be more proud of the United team and I congratulate them for delivering these tremendous results.

Total loans decreased by $288 million during the quarterimpacted by $411 million of Paycheck Protection Program (PPP) loan forgiveness. Excluding the effect of PPP loans, core organic loan growth was 5% annualized. Core transaction deposits grew by $432 million during the quarter, or 14% annualized, and Uniteds cost of deposits decreased by 5 basis points to 0.09%. The net interest margin decreased by 3 basis points from the first quarter due mainly to a change in the earning asset mix.

Second Quarter 2021 Financial Highlights:

-- Net income of $70.3 million and pre-tax, pre-provision income of $78.7 million -- EPS increased by 144% compared to second quarter 2020 on a GAAP basis and 147% on an operating basis; compared to first quarter 2021, EPS decreased by 5% on both a GAAP and operating basis -- Return on assets of 1.46%, or 1.48% on an operating basis -- Pre-tax, pre-provision return on assets of 1.64%, or 1.67% on an operating basis -- Return on common equity of 14.1% -- Return on tangible common equity of 17.8% on an operating basis -- A release of provision for credit losses of $13.6 million, which reduced the allowance for loan losses to 0.98% of loans (1.02%, excluding PPP loans) from 1.09% in the first quarter -- Loan production of $1.3 billion, resulting in core loan growth of 5%, annualized for the quarter, excluding the impact of $411 million in PPP loans being forgiven -- Core transaction deposits were up $432 million, which represents a 14% annualized growth rate for the quarter -- Net interest margin of 3.19% was down 3 basis points from the first quarter, due to continued strong deposit growth and an earning asset mix change toward securities -- Record mortgage closings of $680 million compared to $563 million a year ago; mortgage rate locks of $702 million compared to $802 million a year ago -- Noninterest income was down $8.9 million on a linked quarter basis, primarily driven by slowing mortgage rate lock activity -- Noninterest expenses increased by $346,000 compared to the first quarter on a GAAP basis and by $811,000 on an operating basis mostly due to increased professional fees and mortgage commissions -- Efficiency ratio of 54.5%, or 53.9% on an operating basis -- Net recoveries of $456,000 or 2 basis points as a percent of average loans, down 1 basis point from the first quarter -- Nonperforming assets of 0.25% of total assets, down 5 basis points compared to March 31, 2021 -- Total loan deferrals of $18 million or 0.2% of the total loan portfolio compared to $48 million or 0.4% in the first quarter -- Quarterly common shareholder dividend of $0.19 per share declared during the quarter, an increase of 6% year-over-year -- Announced the acquisition of FinTrust Capital Partners, LLC, a registered investment adviser, which closed on July 6, 2021; it added $2.1 billion in assets under management and is expected to add $0.02 in EPS accretion in 2022 -- Announced the acquisition of Aquesta Financial Holdings, Inc. with $752 million in assets on May 27; it is expected to close in the fourth quarter of 2021 and add $0.08 in EPS accretion in 2022 with cost savings fully phased in -- Announced the acquisition of Reliant Bancorp, Inc. with $3.1 billion in assets on July 14; it is expected to close in the first quarter of 2022 and add $0.15 in EPS accretion in 2022 and $0.22 in 2023 with cost savings fully phased in

Conference Call

United will hold a conference call on Wednesday, July 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 9585551. 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 Second For the Six Months Ended YTD 2021 Quarter June 30, -(in thousands, Second First Fourth Third Second 2021 - 2020except per share Quarter Quarter Quarter Quarter Quarter 2020 2021 2020 Changedata) ChangeINCOME SUMMARY Interest revenue $ 145,809 $ 141,542 $ 156,071 $ 141,773 $ 123,605 $ 287,351 $ 260,152 Interest expense 7,433 9,478 10,676 13,319 14,301 16,911 32,242 Net interest 138,376 132,064 145,395 128,454 109,304 27 % 270,440 227,910 19 %revenue(Release of)provision for (13,588 ) (12,281 ) 2,907 21,793 33,543 (25,869 ) 55,734 credit lossesNoninterest income 35,841 44,705 41,375 48,682 40,238 (11 ) 80,546 66,052 22 Total revenue 187,805 189,050 183,863 155,343 115,999 62 376,855 238,228 58 Expenses 95,540 95,194 106,490 95,981 83,980 14 190,734 165,518 15 Income before 92,265 93,856 77,373 59,362 32,019 188 186,121 72,710 156 income tax expenseIncome tax expense 22,005 20,150 17,871 11,755 6,923 218 42,155 15,730 168 Net income 70,260 73,706 59,502 47,607 25,096 180 143,966 56,980 153 Merger-related and 1,078 1,543 2,452 3,361 397 2,621 1,205 other chargesIncome tax benefitof merger-related (246 ) (335 ) (552 ) (519 ) (87 ) (581 ) (269 ) and other chargesNet income - $ 71,092 $ 74,914 $ 61,402 $ 50,449 $ 25,406 180 $ 146,006 $ 57,916 152 operating^ (1) Pre-taxpre-provision $ 78,677 $ 81,575 $ 80,280 $ 81,155 $ 65,562 20 $ 160,252 $ 128,444 25 income ^(5) PERFORMANCE MEASURESPer common share: Diluted net income $ 0.78 $ 0.82 $ 0.66 $ 0.52 $ 0.32 144 $ 1.60 $ 0.71 125 - GAAPDiluted net income 0.79 0.83 0.68 0.55 0.32 147 1.62 0.73 122 - operating ^(1)Cash dividends 0.19 0.19 0.18 0.18 0.18 6 0.38 0.36 6 declaredBook value 22.81 22.15 21.90 21.45 21.22 7 22.81 21.22 7 Tangible book value 18.49 17.83 17.56 17.09 16.95 9 18.49 16.95 9 ^ (3)Key performance ratios:Return on commonequity - GAAP ^(2) 14.08 % 15.37 % 12.36 % 10.06 % 6.17 % 14.71 % 7.01 % (4)Return on commonequity - operating 14.25 15.63 12.77 10.69 6.25 14.92 7.13 ^(1)(2)(4)Return on tangiblecommon equity - 17.81 19.68 16.23 13.52 8.09 18.72 9.20 operating ^(1)(2)(3)(4)Return on assets - 1.46 1.62 1.30 1.07 0.71 1.54 0.85 GAAP ^(4)Return on assets - 1.48 1.65 1.34 1.14 0.72 1.56 0.86 operating ^(1)(4)Return on assets -pre-tax 1.64 1.80 1.77 1.86 1.86 1.72 1.91 pre-provision ^(4)(5)Return on assets -pre-taxpre-provision,excluding 1.67 1.83 1.82 1.93 1.87 1.75 1.92 merger- related andother charges ^(1)(4)(5)Net interest margin(fully taxable 3.19 3.22 3.55 3.27 3.42 3.20 3.73 equivalent) ^(4)Efficiency ratio - 54.53 53.55 56.73 54.14 55.86 54.04 56.00 GAAPEfficiency ratio - 53.92 52.68 55.42 52.24 55.59 53.30 55.59 operating ^(1)Equity to total 11.04 10.95 11.29 11.47 11.81 11.04 11.81 assetsTangible commonequity to tangible 8.71 8.57 8.81 8.89 9.12 8.71 9.12 assets ^(3) ASSET QUALITY Nonperforming loans $ 46,123 $ 55,900 $ 61,599 $ 49,084 $ 48,021 (4 ) $ 46,123 $ 48,021 (4 ) Foreclosed 224 596 647 953 477 224 477 propertiesTotal nonperforming 46,347 56,496 62,246 50,037 48,498 (4 ) 46,347 48,498 (4 ) assets ("NPAs")Allowance forcredit losses - 111,616 126,866 137,010 134,256 103,669 8 111,616 103,669 8 loansNet charge-offs (456 ) (305 ) 1,515 2,538 6,149 (761 ) 14,263 (105 ) Allowance forcredit losses - 0.98 % 1.09 % 1.20 % 1.14 % 1.02 % 0.98 % 1.02 % loans to loansNet charge-offs to (0.02 ) (0.01 ) 0.05 0.09 0.25 (0.01 ) 0.31 average loans ^(4)NPAs to loans andforeclosed 0.41 0.48 0.55 0.42 0.48 0.41 0.48 propertiesNPAs to total 0.25 0.30 0.35 0.29 0.32 0.25 0.32 assets AVERAGE BALANCES ($ in millions)Loans $ 11,617 $ 11,433 $ 11,595 $ 11,644 $ 9,773 19 $ 11,525 $ 9,301 24 Investment 4,631 3,991 3,326 2,750 2,408 92 4,313 2,464 75 securitiesEarning assets 17,540 16,782 16,394 15,715 12,958 35 17,163 12,378 39 Total assets 18,792 18,023 17,698 17,013 14,173 33 18,410 13,558 36 Deposits 16,132 15,366 15,057 14,460 12,071 34 15,751 11,493 37 Shareholders? 2,060 2,025 1,994 1,948 1,686 22 2,042 1,670 22 equityCommon shares - 87,289 87,322 87,258 87,129 78,920 11 87,306 79,130 10 basic (thousands)Common shares - 87,421 87,466 87,333 87,205 78,924 11 87,443 79,186 10 diluted (thousands) AT PERIOD END ($ in millions)Loans $ 11,391 $ 11,679 $ 11,371 $ 11,799 $ 10,133 12 $ 11,391 $ 10,133 12 Investment 4,928 4,332 3,645 3,089 2,432 103 4,928 2,432 103 securitiesTotal assets 18,896 18,557 17,794 17,153 15,005 26 18,896 15,005 26 Deposits 16,328 15,993 15,232 14,603 12,702 29 16,328 12,702 29 Shareholders? 2,086 2,031 2,008 1,967 1,772 18 2,086 1,772 18 equityCommon sharesoutstanding 86,665 86,777 86,675 86,611 78,335 11 86,665 78,335 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.

UNITEDCOMMUNITY BANKS, INC.Non-GAAP Performance Measures ReconciliationSelectedFinancial Information 2021 2020 For the Six Months Ended June 30,(in thousands, Second First Fourth Third Secondexcept per Quarter Quarter Quarter Quarter Quarter 2021 2020share data) Expense reconciliationExpenses $ 95,540 $ 95,194 $ 106,490 $ 95,981 $ 83,980 $ 190,734 $ 165,518 (GAAP)Merger-relatedand other (1,078 ) (1,543 ) (2,452 ) (3,361 ) (397 ) (2,621 ) (1,205 ) chargesExpenses - $ 94,462 $ 93,651 $ 104,038 $ 92,620 $ 83,583 $ 188,113 $ 164,313 operating Net income reconciliationNet income $ 70,260 $ 73,706 $ 59,502 $ 47,607 $ 25,096 $ 143,966 $ 56,980 (GAAP)Merger-relatedand other 1,078 1,543 2,452 3,361 397 2,621 1,205 chargesIncome taxbenefit ofmerger-related (246 ) (335 ) (552 ) (519 ) (87 ) (581 ) (269 ) and otherchargesNet income - $ 71,092 $ 74,914 $ 61,402 $ 50,449 $ 25,406 $ 146,006 $ 57,916 operating Net income topre-taxpre-provision incomereconciliationNet income $ 70,260 $ 73,706 $ 59,502 $ 47,607 $ 25,096 $ 143,966 $ 56,980 (GAAP)Income tax 22,005 20,150 17,871 11,755 6,923 42,155 15,730 expense(Release of)provision for (13,588 ) (12,281 ) 2,907 21,793 33,543 (25,869 ) 55,734 credit lossesPre-taxpre-provision $ 78,677 $ 81,575 $ 80,280 $ 81,155 $ 65,562 $ 160,252 $ 128,444 income Diluted incomeper common sharereconciliationDiluted incomeper common $ 0.78 $ 0.82 $ 0.66 $ 0.52 $ 0.32 $ 1.60 $ 0.71 share (GAAP)Merger-relatedand other 0.01 0.01 0.02 0.03 ? 0.02 0.02 charges, netof taxDiluted incomeper common $ 0.79 $ 0.83 $ 0.68 $ 0.55 $ 0.32 $ 1.62 $ 0.73 share -operating Book value percommon share reconciliationBook value percommon share $ 22.81 $ 22.15 $ 21.90 $ 21.45 $ 21.22 $ 22.81 $ 21.22 (GAAP)Effect ofgoodwill and (4.32 ) (4.32 ) (4.34 ) (4.36 ) (4.27 ) (4.32 ) (4.27 ) otherintangiblesTangible bookvalue per $ 18.49 $ 17.83 $ 17.56 $ 17.09 $ 16.95 $ 18.49 $ 16.95 common share Return ontangible common equityreconciliationReturn oncommon equity 14.08 % 15.37 % 12.36 % 10.06 % 6.17 % 14.71 % 7.01 %(GAAP)Merger-relatedand other 0.17 0.26 0.41 0.63 0.08 0.21 0.12 charges, netof taxReturn oncommon equity 14.25 15.63 12.77 10.69 6.25 14.92 7.13 - operatingEffect ofgoodwill and 3.56 4.05 3.46 2.83 1.84 3.80 2.07 otherintangiblesReturn ontangible 17.81 % 19.68 % 16.23 % 13.52 % 8.09 % 18.72 % 9.20 %common equity- operating Return onassets reconciliationReturn on 1.46 % 1.62 % 1.30 % 1.07 % 0.71 % 1.54 % 0.85 %assets (GAAP)Merger-relatedand other 0.02 0.03 0.04 0.07 0.01 0.02 0.01 charges, netof taxReturn onassets - 1.48 % 1.65 % 1.34 % 1.14 % 0.72 % 1.56 % 0.86 %operating Return onassets toreturn onassets- pre-taxpre-provisionreconciliationReturn on 1.46 % 1.62 % 1.30 % 1.07 % 0.71 % 1.54 % 0.85 %assets (GAAP)Income tax 0.47 0.46 0.40 0.28 0.20 0.46 0.23 expense(Release of)provision for (0.29 ) (0.28 ) 0.07 0.51 0.95 (0.28 ) 0.83 credit lossesReturn onassets - 1.64 1.80 1.77 1.86 1.86 1.72 1.91 pre-tax,pre-provisionMerger-relatedand other 0.03 0.03 0.05 0.07 0.01 0.03 0.01 chargesReturn onassets -pre-taxpre-provision, 1.67 % 1.83 % 1.82 % 1.93 % 1.87 % 1.75 % 1.92 %excludingmerger-relatedand othercharges Efficiencyratio reconciliationEfficiency 54.53 % 53.55 % 56.73 % 54.14 % 55.86 % 54.04 % 56.00 %ratio (GAAP)Merger-relatedand other (0.61 ) (0.87 ) (1.31 ) (1.90 ) (0.27 ) (0.74 ) (0.41 ) chargesEfficiencyratio - 53.92 % 52.68 % 55.42 % 52.24 % 55.59 % 53.30 % 55.59 %operating Tangiblecommon equityto tangible assetsreconciliationEquity tototal assets 11.04 % 10.95 % 11.29 % 11.47 % 11.81 % 11.04 % 11.81 %(GAAP)Effect ofgoodwill and (1.82 ) (1.86 ) (1.94 ) (2.02 ) (2.05 ) (1.82 ) (2.05 ) otherintangiblesEffect ofpreferred (0.51 ) (0.52 ) (0.54 ) (0.56 ) (0.64 ) (0.51 ) (0.64 ) equityTangiblecommon equity 8.71 % 8.57 % 8.81 % 8.89 % 9.12 % 8.71 % 9.12 %to tangibleassets Allowance forcredit losses- loans to loansreconciliationAllowance forcredit losses 0.98 % 1.09 % 1.20 % 1.14 % 1.02 % 0.98 % 1.02 %- loans toloans (GAAP)Effect of PPP 0.04 0.09 0.08 0.14 0.13 0.04 0.13 loansAllowance forcredit losses- loans to 1.02 % 1.18 % 1.28 % 1.28 % 1.15 % 1.02 % 1.15 %loans,excluding PPPloans

UNITED COMMUNITY BANKS, INC.Financial Highlights Loan PortfolioComposition at Period-End 2021 2020 Linked Year over(in Second First Fourth Third Second Quarter Yearmillions) Quarter Quarter Quarter Quarter Quarter Change ChangeLOANS BY CATEGORYOwneroccupied $ 2,149 $ 2,107 $ 2,090 $ 2,009 $ 1,759 $ 42 $ 390 commercialREIncomeproducing 2,550 2,599 2,541 2,493 2,178 (49 ) 372 commercialRECommercial & 1,762 1,760 1,853 1,788 1,219 2 543 industrialPaycheckprotection 472 883 646 1,317 1,095 (411 ) (623 )programCommercial 927 960 967 987 946 (33 ) (19 )constructionEquipment 969 913 864 823 779 56 190 financingTotal 8,829 9,222 8,961 9,417 7,976 (393 ) 853 commercialResidential 1,473 1,362 1,285 1,270 1,152 111 321 mortgageHome equitylines of 661 679 697 707 654 (18 ) 7 creditResidential 289 272 281 257 230 17 59 constructionConsumer 139 144 147 148 121 (5 ) 18 Total loans $ 11,391 $ 11,679 $ 11,371 $ 11,799 $ 10,133 $ (288 ) $ 1,258 LOANS BY MARKET^ (1)North $ 962 $ 982 $ 955 $ 945 $ 951 $ (20 ) $ 11 GeorgiaAtlanta 1,938 1,953 1,889 1,853 1,852 (15 ) 86 North 1,374 1,326 1,281 1,246 1,171 48 203 CarolinaCoastal 605 597 617 614 618 8 (13 )GeorgiaGainesville 224 222 224 229 233 2 (9 )East 394 398 415 420 433 (4 ) (39 )TennesseeSouth 2,107 1,997 1,947 1,870 1,778 110 329 CarolinaFlorida 1,141 1,160 1,435 1,453 ? (19 ) 1,141 CommercialBanking 2,646 3,044 2,608 3,169 3,097 (398 ) (451 )SolutionsTotal loans $ 11,391 $ 11,679 $ 11,371 $ 11,799 $ 10,133 $ (288 ) $ 1,258

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

UNITED COMMUNITY BANKS, INC.Financial Highlights Credit Quality 2021 2020 (in thousands) Second First Fourth Quarter Quarter QuarterNONACCRUAL LOANS Owner occupied RE $ 6,128 $ 7,908 $ 8,582 Income producing RE 13,100 13,740 15,149 Commercial & 8,563 13,864 16,634 industrialCommercial 1,229 1,984 1,745 constructionEquipment financing 1,771 2,171 3,405 Total commercial 30,791 39,667 45,515 Residential mortgage 13,485 14,050 12,858 Home equity lines of 1,433 1,707 2,487 creditResidential 307 322 514 constructionConsumer 107 154 225 Total $ 46,123 $ 55,900 $ 61,599

2021 2020 Second Quarter First Quarter Fourth Quarter Net Net Charge- Net Net Charge- Net Net Charge-(in Charge- Offs to Charge- Offs to Charge- Offs tothousands) Offs Average Offs Average Offs Average Loans^ (1) Loans^ (1) Loans^ (1)NETCHARGE-OFFS BY CATEGORYOwner $ (155 ) (0.03 ) % $ (240 ) (0.05 ) % $ (277 ) (0.05 ) %occupied REIncome (161 ) (0.02 ) 991 0.16 (1,718 ) (0.27 ) producing RECommercial & 60 0.01 (2,753 ) (0.44 ) 2,294 0.33 industrialCommercial (293 ) (0.12 ) 22 0.01 (129 ) (0.05 ) constructionEquipment 301 0.13 1,511 0.70 1,595 0.75 financingTotal (248 ) (0.01 ) (469 ) (0.02 ) 1,765 0.08 commercialResidential (194 ) (0.05 ) 92 0.03 (25 ) (0.01 ) mortgageHome equitylines of (112 ) (0.07 ) (73 ) (0.04 ) (151 ) (0.09 ) creditResidential (33 ) (0.05 ) (60 ) (0.09 ) (47 ) (0.07 ) constructionConsumer 131 0.37 205 0.58 (27 ) (0.07 ) Total $ (456 ) (0.02 ) $ (305 ) (0.01 ) $ 1,515 0.05 ^(1) Annualized.

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

(in thousands, except share and per June 30, December 31,share data) 2021 2020ASSETS Cash and due from banks $ 121,589 $ 148,896 Interest-bearing deposits in banks 1,297,808 1,459,723 Cash and cash equivalents 1,419,397 1,608,619 Debt securities available-for-sale 4,075,781 3,224,721 Debt securities held-to-maturity (fair 852,404 420,361 value $861,488 and $437,193)Loans held for sale at fair value 98,194 105,433 Loans and leases held for investment 11,390,746 11,370,815 Less allowance for credit losses - (111,616 ) (137,010 )loans and leasesLoans and leases, net 11,279,130 11,233,805 Premises and equipment, net 224,980 218,489 Bank owned life insurance 203,449 201,969 Accrued interest receivable 43,521 47,672 Net deferred tax asset 32,918 38,411 Derivative financial instruments 58,489 86,666 Goodwill and other intangible assets, 379,909 381,823 netOther assets 227,551 226,405 Total assets $ 18,895,723 $ 17,794,374 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $ 6,260,756 $ 5,390,291 NOW and interest-bearing demand 3,518,686 3,346,490 Money market 3,766,645 3,550,335 Savings 1,097,663 950,854 Time 1,500,049 1,704,290 Brokered 183,968 290,098 Total deposits 16,327,767 15,232,358 Long-term debt 261,919 326,956 Derivative financial instruments 27,089 29,003 Accrued expenses and other liabilities 192,662 198,527 Total liabilities 16,809,437 15,786,844 Shareholders' equity: Preferred stock; $1 par value;10,000,000 shares authorized;Series I, $25,000 per share liquidation 96,422 96,422 preference; 4,000 shares issued andoutstandingCommon stock, $1 par value; 200,000,000shares authorized; 86,665 86,675 86,664,894 and 86,675,279 shares issuedand outstandingCommon stock issuable; 571,580 and 10,650 10,855 600,834 sharesCapital surplus 1,636,875 1,638,999 Retained earnings 244,006 136,869 Accumulated other comprehensive income 11,668 37,710 Total shareholders' equity 2,086,286 2,007,530 Total liabilities and shareholders' $ 18,895,723 $ 17,794,374 equity

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

Three Months Ended Six Months Ended June 30, June 30,(in thousands, except 2021 2020 2021 2020per share data)Interest revenue: Loans, including fees $ 128,058 $ 107,862 $ 253,784 $ 225,925 Investment securities,including tax exempt of$2,255 and $1,570 and 17,542 15,615 32,990 33,009 $4,405 and $3,093,respectivelyDeposits in banks and 209 128 577 1,218 short-term investmentsTotal interest revenue 145,809 123,605 287,351 260,152 Interest expense: Deposits: NOW and 1,382 1,628 2,868 4,606 interest-bearing demandMoney market 1,355 3,421 3,159 7,952 Savings 53 39 102 74 Time 830 6,183 2,710 13,714 Deposits 3,620 11,271 8,839 26,346 Short-term borrowings ? ? ? 1 Federal Home Loan Bank ? ? 2 1 advancesLong-term debt 3,813 3,030 8,070 5,894 Total interest expense 7,433 14,301 16,911 32,242 Net interest revenue 138,376 109,304 270,440 227,910 (Release of) provision (13,588 ) 33,543 (25,869 ) 55,734 for credit lossesNet interest revenueafter provision for 151,964 75,761 296,309 172,176 credit losses Noninterest income: Service charges and 8,335 6,995 15,905 15,633 feesMortgage loan gains and 11,136 23,659 33,708 31,969 other related feesWealth management fees 3,822 1,324 7,327 2,964 Gains from sales of 4,123 1,040 5,153 2,714 other loans, netSecurities gains, net 41 ? 41 ? Other 8,384 7,220 18,412 12,772 Total noninterest 35,841 40,238 80,546 66,052 incomeTotal revenue 187,805 115,999 376,855 238,228 Noninterest expenses: Salaries and employee 59,414 51,811 119,999 103,169 benefitsCommunications and 7,408 6,556 14,611 12,502 equipmentOccupancy 7,078 5,945 14,034 11,659 Advertising and public 1,493 2,260 2,692 3,534 relationsPostage, printing and 1,618 1,613 3,440 3,283 suppliesProfessional fees 4,928 4,823 9,162 8,920 Lending and loan 3,181 3,189 6,058 5,482 servicing expenseOutside services - 2,285 1,796 4,503 3,628 electronic bankingFDIC assessments andother regulatory 1,901 1,558 3,797 3,042 chargesAmortization of 929 987 1,914 2,027 intangiblesMerger-related and 1,078 397 2,621 1,205 other chargesOther 4,227 3,045 7,903 7,067 Total noninterest 95,540 83,980 190,734 165,518 expensesNet income before 92,265 32,019 186,121 72,710 income taxesIncome tax expense 22,005 6,923 42,155 15,730 Net income 70,260 25,096 143,966 56,980 Preferred stock 1,719 ? 3,438 ? dividendsUndistributed earningsallocated to 432 183 894 426 participatingsecuritiesNet income available to $ 68,109 $ 24,913 $ 139,634 $ 56,554 common shareholders Net income per common share:Basic $ 0.78 $ 0.32 $ 1.60 $ 0.71 Diluted 0.78 0.32 1.60 0.71 Weighted average common shares outstanding:Basic 87,289 78,920 87,306 79,130 Diluted 87,421 78,924 87,443 79,186

Average Consolidated Balance Sheets and Net Interest AnalysisFor the Three Months Ended June 30,

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 $ 11,616,802 $ 127,458 4.40 % $ 9,772,703 $ 107,398 4.42 %(FTE) ^(1)(2)Taxable securities^ 4,242,297 15,287 1.44 2,229,371 14,045 2.52 (3)Tax-exemptsecurities (FTE) ^ 388,609 3,030 3.12 178,903 2,110 4.72 (1)(3)Federal funds soldand other 1,292,026 1,055 0.33 776,776 857 0.44 interest-earningassetsTotalinterest-earning 17,539,734 146,830 3.36 12,957,753 124,410 3.86 assets (FTE) Noninterest-earning assets:Allowance for (128,073 ) (89,992 ) credit lossesCash and due from 152,443 138,842 banksPremises and 225,017 217,096 equipmentOther assets ^(3) 1,002,634 949,201 Total assets $ 18,791,755 $ 14,172,900 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 3,428,009 1,382 0.16 $ 2,444,895 1,628 0.27 demandMoney market 3,814,960 1,355 0.14 2,541,805 3,421 0.54 Savings 1,080,267 53 0.02 788,247 39 0.02 Time 1,548,487 899 0.23 1,805,671 6,058 1.35 Brokered time 64,332 (69 ) (0.43 ) 130,556 125 0.39 depositsTotalinterest-bearing 9,936,055 3,620 0.15 7,711,174 11,271 0.59 depositsFederal fundspurchased and other 111 ? ? 1 ? ? borrowingsFederal Home Loan ? ? ? ? ? ? Bank advancesLong-term debt 285,389 3,813 5.36 228,096 3,030 5.34 Total borrowed 285,500 3,813 5.36 228,097 3,030 5.34 fundsTotalinterest-bearing 10,221,555 7,433 0.29 7,939,271 14,301 0.72 liabilities Noninterest-bearing liabilities:Noninterest-bearing 6,196,045 4,360,095 depositsOther liabilities 314,130 187,375 Total liabilities 16,731,730 12,486,741 Shareholders' 2,060,025 1,686,159 equityTotal liabilitiesand shareholders' $ 18,791,755 $ 14,172,900 equity Net interest $ 139,397 $ 110,109 revenue (FTE)Net interest-rate 3.07 % 3.14 %spread (FTE)Net interest margin 3.19 % 3.42 %(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 $28.6 million and $66.3 million in 2021 and 2020, respectively, 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,

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 $ 11,525,363 $ 252,580 4.42 % $ 9,300,792 $ 225,194 4.87 %(FTE) ^(1)(2)Taxable securities ^ 3,932,545 28,585 1.45 2,293,502 29,916 2.61 (3)Tax-exemptsecurities (FTE)^ 380,370 5,918 3.11 170,578 4,155 4.87 (1)(3)Federal funds soldand other 1,324,776 2,277 0.34 612,776 2,489 0.81 interest-earningassetsTotalinterest-earning 17,163,054 289,360 3.40 12,377,648 261,754 4.25 assets (FTE) Non-interest-earning assets:Allowance for loan (135,845 ) (79,885 ) lossesCash and due from 146,401 133,548 banksPremises and 223,224 218,170 equipmentOther assets ^(3) 1,012,896 908,828 Total assets $ 18,409,730 $ 13,558,309 Liabilities andShareholders' Equity:Interest-bearing liabilities:Interest-bearing deposits:NOW andinterest-bearing $ 3,379,794 2,868 0.17 $ 2,428,815 4,606 0.38 demandMoney market 3,774,201 3,159 0.17 2,441,264 7,952 0.66 Savings 1,035,176 102 0.02 750,179 74 0.02 Time 1,595,196 2,487 0.31 1,823,612 13,308 1.47 Brokered time 69,765 223 0.64 105,689 406 0.77 depositsTotalinterest-bearing 9,854,132 8,839 0.18 7,549,559 26,346 0.70 depositsFederal fundspurchased and other 62 ? ? 199 1 1.01 borrowingsFederal Home Loan 1,657 2 0.24 83 1 2.42 Bank advancesLong-term debt 301,193 8,070 5.40 220,429 5,894 5.38 Total borrowed funds 302,912 8,072 5.37 220,711 5,896 5.37 Totalinterest-bearing 10,157,044 16,911 0.34 7,770,270 32,242 0.83 liabilities Noninterest-bearing liabilities:Noninterest-bearing 5,896,882 3,943,740 depositsOther liabilities 313,374 174,781 Total liabilities 16,367,300 11,888,791 Shareholders' equity 2,042,430 1,669,518 Total liabilitiesand shareholders' $ 18,409,730 $ 13,558,309 equity Net interest revenue $ 272,449 $ 229,512 (FTE)Net interest-rate 3.06 % 3.42 %spread (FTE)Net interest margin 3.20 % 3.73 %(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 $43.4 million and $59.6 million in 2021 and 2020, respectively, 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. (NASDAQGS: UCBI) 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 nationally for delivering award-winning service. United has $18.9 billion in assets and 162 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee along with a national SBA lending franchise and a national equipment lending subsidiary. In 2021, J.D. Power ranked United highest in customer satisfaction with retail banking in the Southeast, marking seven out of the last eight years United earned the coveted award. United was also named one of the "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