Financial Performance - Net income for the three months ended September 30, 2025, was $91,494 thousand, representing a significant increase of 93.5% compared to $47,347 thousand in the prior year[14]. - Net income for the nine months ended September 30, 2025, was $241,640,000, an increase from $176,593,000 in the same period of 2024, representing a growth of approximately 36.8%[19]. - The company reported a basic net income per common share of $0.71 for the three months ended September 30, 2025, compared to $0.38 in the prior year, marking an increase of 86.8%[14]. - For Q3 2025, net income was $91.5 million, with diluted earnings per share of $0.70, compared to $47.3 million and $0.38 in Q3 2024, representing an increase of 93% in net income[151]. - For the nine months ended September 30, 2025, net income was $242 million, up from $177 million in the same period of 2024, with diluted earnings per share increasing from $1.43 to $1.91[151]. Revenue and Income Sources - Net interest revenue for the three months ended September 30, 2025, was $233,629 thousand, up 11.7% from $209,186 thousand in the same period of 2024[14]. - Noninterest income for the nine months ended September 30, 2025, totaled $113,583 thousand, a 34.9% increase from $84,234 thousand in the same period of 2024[14]. - Noninterest income for Q3 2025 was $43.2 million, an increase of $35.1 million compared to the same period in 2024, largely due to favorable fair value adjustments[156]. - Total revenue rose by 27% year-over-year to $276,848 thousand in Q3 2025, up from $217,277 thousand in Q3 2024[161]. - Noninterest income surged by 435% year-over-year to $43,219 thousand in Q3 2025, compared to $8,091 thousand in Q3 2024[161]. Assets and Liabilities - Total assets increased to $28,143,473 thousand as of September 30, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 1.5%[12]. - Total liabilities increased to $24,546,622 thousand as of September 30, 2025, from $24,288,131 thousand at December 31, 2024, reflecting a growth of 1.1%[12]. - The company’s retained earnings rose to $858,395 thousand as of September 30, 2025, compared to $714,138 thousand at December 31, 2024, an increase of 20.2%[12]. - The carrying value of loans held for investment as of September 30, 2025, was $18,399,997,000, an increase from $17,325,630,000 on December 31, 2024[131]. - As of September 30, 2025, total investment securities decreased to $6.16 billion from $6.80 billion, a decline of $641 million[199]. Credit Quality and Losses - The provision for credit losses decreased to $7,907 thousand for the three months ended September 30, 2025, down from $14,428 thousand in the same period of 2024, indicating improved credit quality[14]. - The company reported a provision for credit losses of $35,144,000 for the nine months ended September 30, 2025, down from $39,562,000 in 2024, indicating a decrease of 11.4%[19]. - The total Allowance for Credit Losses (ACL) for loans was $215,791,000, reflecting a decrease of $12,854,000 from the previous period[88]. - The net charge-offs for the three months ended September 30, 2025, totaled $7.68 million, compared to $23.65 million for the same period in 2024[193]. - Nonperforming Assets (NPAs) decreased to $97.92 million as of September 30, 2025, from $115.64 million at December 31, 2024, with nonaccrual loans as a percentage of total loans at 0.50%[196]. Acquisition and Market Presence - The company completed the acquisition of ANB on May 1, 2025, which is expected to enhance its market presence in Oakland Park, Florida[26]. - The acquisition of ANB resulted in actual revenue of $4.365 million and net income of $2.208 million for the three months ended September 30, 2025, with pro forma revenue of $275.888 million and net income of $93.064 million if the acquisition had occurred on January 1, 2024[32]. - The company reported net cash provided by operating activities of $318,563,000 for the nine months ended September 30, 2025, compared to $201,642,000 for the same period in 2024, indicating a significant increase of 57.9%[19]. Capital and Shareholder Returns - As of September 30, 2025, the CET1 capital ratio was 13.44%, well above the minimum requirement of 4.5%[138]. - Total capital as of September 30, 2025, was $3,073,175,000, compared to $2,982,273,000 on December 31, 2024, showing an increase of 3%[138]. - The company redeemed all outstanding shares of its 6.875% Series I non-cumulative perpetual preferred stock on September 15, 2025, for a cash payment of $91.5 million[140]. - Cash dividends declared rose to $0.25 per share in Q3 2025, up from $0.24 per share in Q3 2024[161]. Market and Economic Conditions - The corporate tax rate was made permanent at 21% with the enactment of the One Big Beautiful Bill Act on July 4, 2025, impacting future financial planning[149]. - The federal funds rate cuts of 125 basis points beginning in September 2024 contributed to the improvement in net interest spread and margin[164]. - The baseline economic forecast has worsened slightly, impacting the expected default rates, but the decrease in net charge-offs contributed to a lower modeled ACL balance[84].

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Financial Highlights - United Community Bank reported diluted earnings per share (EPS) of $0.70 (GAAP) and $0.75 (operating) in 3Q25[12] - The bank's return on assets (ROA) was 1.29% (GAAP) and 1.33% (operating) in 3Q25[12, 14] - The net interest margin (NIM) increased by 8 bps to 3.58% in 3Q25[12, 44] - Tangible book value (TBV) per share increased to $21.59, a 10% year-over-year improvement[12] Balance Sheet - Total assets reached $28.1 billion, with total deposits at $24.0 billion and total loans at $19.2 billion[10] - Customer deposits grew by $58 million from 2Q25, or 10% annualized[24] - Loan growth was $254 million, or 54% annualized[30] - The bank's CET1 RBC ratio stood at 134%[10, 41] Income Statement - Noninterest income increased to $432 million[47] - The operating efficiency ratio improved to 531%, driven by higher revenue growth[14, 55] Credit Quality - Net charge-offs were $77 million, representing 016% of average loans[60] - The allowance for credit losses (ACL) stood at $228276 million, with an ACL to loans ratio of 119%[61]

[Third Quarter 2025 Earnings Overview](index=1&type=section&id=1.%20Third%20Quarter%202025%20Earnings%20Overview) United Community Banks, Inc. reported strong Q3 2025 results, showcasing significant growth in net income and diluted EPS, alongside robust loan and deposit expansion and improved credit quality [Executive Summary](index=1&type=section&id=1.1%20Executive%20Summary) United Community Banks, Inc. reported strong Q3 2025 results with net income of $91.5 million and diluted EPS of $0.70, driven by loan growth, margin expansion, and improved credit quality Q3 2025 Key Financial Highlights | Metric | Q3 2025 (GAAP) | Q3 2025 (Operating) | Q3 2024 (GAAP) | Q3 2024 (Operating) | | :-------------------------------- | :------------- | :------------------ | :------------- | :------------------ | | Net Income | $91.5 million | $94.2 million | $47.3 million | $70.5 million | | Diluted EPS | $0.70 | $0.75 | $0.38 | $0.57 | | Return on Assets (ROA) | 1.29% | 1.33% | 0.67% | 1.01% | | Return on Common Equity (ROE) | 9.2% | 9.83% | 5.20% | 7.82% | | Return on Tangible Common Equity (ROTCE) | N/A | 13.6% | N/A | 11.17% | | Pre-tax, Pre-provision Income | $126.0 million | N/A | N/A | N/A | - Diluted EPS of **$0.70** for Q3 2025 increased by **$0.32** from Q3 2024 and by **$0.07** from Q2 2025. Operating diluted EPS of **$0.75** was up **32%** year-over-year[1](index=1&type=chunk)[2](index=2&type=chunk) - Tangible book value per share grew by **$0.59** from Q2 2025, representing an **11% annualized rate**[4](index=4&type=chunk) - Loans grew by **$254 million**, or **5.4% annualized**, while customer deposits (excluding seasonal public funds outflow) were up **$137 million** or **2.6% annualized**[4](index=4&type=chunk) - Net charge-offs were **$7.7 million** or **0.16% annualized** of average loans, down **two basis points** from Q2 2025[4](index=4&type=chunk) - Nonperforming assets were **0.35%** of total assets, a slight increase from **0.30%** for Q2 2025[4](index=4&type=chunk) - Provision for credit losses improved by **$3.9 million** from Q2 2025, with allowance for credit losses at **1.19%** of loans as of September 30, slightly down from **1.21%** at June 30[5](index=5&type=chunk) [Third Quarter 2025 Financial Highlights](index=2&type=section&id=1.2%20Third%20Quarter%202025%20Financial%20Highlights) Q3 2025 financial highlights include significant increases in EPS, total revenue, and net interest margin, alongside improved credit quality and capital ratios Q3 2025 Key Financial Metrics and Changes | Metric | Q3 2025 Value | QoQ Change (vs Q2 2025) | YoY Change (vs Q3 2024) | | :------------------------------------ | :-------------- | :------------------------ | :------------------------ | | EPS (GAAP) | $0.70 | Up $0.07 | Up $0.32 | | EPS (Operating) | $0.75 | Up $0.09 (14%) | Up $0.18 (32%) | | Net Income | $91.5 million | Up $12.8 million | N/A | | Pre-tax, Pre-provision Income | $126.0 million | Up $13.7 million | N/A | | Total Revenue | $276.8 million | Up $16.6 million (6%) | N/A | | Net Interest Margin | 3.58% | Up 8 basis points | N/A | | Noninterest Income | N/A | Up $8.5 million | N/A | | Provision for Credit Losses | $7.9 million | Down $3.9 million | N/A | | Net Charge-offs (annualized) | 0.16% | Improved 2 basis points | N/A | | Noninterest Expenses (GAAP) | N/A | Up $2.9 million | N/A | | Efficiency Ratio (Operating) | 53.1% | Improved | Improved | | Loan Growth (annualized) | 5.4% | N/A | N/A | | Mortgage Closings | $283 million | N/A | Up from $239 million | | Mortgage Rate Locks | $388 million | N/A | Up from $306 million | | Customer Deposits (excl. public funds) | N/A | Up $137 million | N/A | | Common Equity Tier 1 (preliminary) | 13.4% | N/A | N/A | | Quarterly Common Dividend | $0.25 per share | N/A | Up 4% | | Preferred Stock Redeemed | $88.3 million | N/A | N/A | - Net interest margin increased due to a lower cost of funds and improving asset mix[8](index=8&type=chunk) - Noninterest income growth was mostly due to gains on other investments, death benefit claims on bank owned life insurance, and a favorable mark on mortgage servicing rights asset[8](index=8&type=chunk) - Noninterest expenses increased primarily driven by performance-based incentives[8](index=8&type=chunk) [Selected Financial Information](index=3&type=section&id=2.%20Selected%20Financial%20Information) This section provides a comprehensive overview of the company's income, performance measures, and asset quality metrics for various periods [Income Summary](index=3&type=section&id=2.1%20Income%20Summary) The income summary details interest revenue, expenses, and net income for various periods, highlighting significant year-over-year improvements Income Summary (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Interest revenue | $353,850 | $347,365 | $335,357 | $349,086 | $344,962 | $1,036,572 | $1,032,779 | | Interest expense | $120,221 | $121,834 | $123,336 | $134,629 | $139,900 | $365,391 | $415,744 | | Net interest revenue | $233,629 | $225,531 | $212,021 | $210,333 | $209,186 | $671,181 | $617,035 | | Noninterest income | $43,219 | $34,708 | $35,656 | $40,522 | $8,091 | $113,583 | $84,234 | | Total revenue | $276,848 | $260,239 | $247,677 | $250,855 | $217,277 | $784,764 | $701,269 | | Provision for credit losses | $7,907 | $11,818 | $15,419 | $11,389 | $14,428 | $35,144 | $39,562 | | Noninterest expense | $150,868 | $147,919 | $141,099 | $143,056 | $143,065 | $439,886 | $435,111 | | Income before income tax | $118,073 | $100,502 | $96,410 | $91,159 | $59,784 | $309,734 | $226,596 | | Income tax expense | $26,579 | $21,769 | $19,746 | $20,606 | $12,437 | $68,094 | $50,003 | | Net income | $91,494 | $78,733 | $71,413 | $75,804 | $47,347 | $241,640 | $176,593 | [Performance Measures](index=3&type=section&id=2.2%20Performance%20Measures) Key performance ratios, including EPS, book value, and return metrics, show consistent improvements across most indicators for the reported periods Key Performance Ratios | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Diluted net income - GAAP | $0.70 | $0.63 | $0.58 | $0.61 | $0.38 | $1.91 | $1.43 | | Diluted net income - operating | $0.75 | $0.66 | $0.59 | $0.63 | $0.57 | $2.00 | $1.67 | | Cash dividends declared | $0.25 | $0.24 | $0.24 | $0.24 | $0.24 | $0.73 | $0.70 | | Book value | $29.44 | $28.89 | $28.42 | $27.87 | $27.68 | $29.44 | $27.68 | | Tangible book value | $21.59 | $21.00 | $20.58 | $20.00 | $19.66 | $21.59 | $19.66 | | Return on common equity - GAAP | 9.20% | 8.45% | 7.89% | 8.40% | 5.20% | 8.53% | 6.61% | | Return on common equity - operating | 9.83% | 8.87% | 8.01% | 8.60% | 7.82% | 8.92% | 7.76% | | Return on tangible common equity - operating | 13.56% | 12.34% | 11.21% | 12.12% | 11.17% | 12.57% | 11.18% | | Return on assets - GAAP | 1.29% | 1.11% | 1.02% | 1.06% | 0.67% | 1.16% | 0.85% | | Return on assets - operating | 1.33% | 1.16% | 1.04% | 1.08% | 1.01% | 1.19% | 0.99% | | Net interest margin (FTE) | 3.58% | 3.50% | 3.36% | 3.26% | 3.33% | 3.48% | 3.30% | | Efficiency ratio - GAAP | 54.30% | 56.69% | 56.74% | 56.05% | 65.51% | 55.86% | 61.76% | | Efficiency ratio - operating | 53.05% | 54.84% | 56.22% | 55.18% | 57.37% | 54.64% | 57.84% | | Equity to total assets | 12.78% | 12.86% | 12.56% | 12.38% | 12.45% | 12.78% | 12.45% | | Tangible common equity to tangible assets | 9.71% | 9.45% | 9.18% | 8.97% | 8.93% | 9.71% | 8.93% | [Asset Quality](index=3&type=section&id=2.3%20Asset%20Quality) Key asset quality indicators, including nonperforming assets and net charge-offs, show a quarter-over-quarter increase in NPAs but an improved net charge-off ratio Asset Quality Metrics (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Nonperforming assets ("NPAs") | $97,916 | $83,959 | $93,290 | $97,916 | $114,960 | | Allowance for credit losses - loans | $215,791 | $216,500 | $211,974 | $206,998 | $205,290 | | Allowance for credit losses - total | $228,045 | $217,389 | $215,517 | $228,276 | $215,517 | | Net charge-offs | $7,676 | $8,225 | $9,607 | $9,517 | $8,225 | | Allowance for credit losses - loans to loans | 1.19% | 1.21% | 1.20% | 1.14% | 1.14% | | Allowance for credit losses - total to loans | 1.19% | 1.21% | 1.20% | 1.14% | 1.14% | | Net charge-offs to average loans (annualized) | 0.16% | 0.18% | 0.21% | 0.18% | 0.21% | | NPAs to total assets | 0.35% | 0.30% | 0.33% | 0.35% | 0.42% | [Non-GAAP Performance Measures Reconciliation](index=4&type=section&id=3.%20Non-GAAP%20Performance%20Measures%20Reconciliation) This section provides detailed reconciliations of GAAP financial measures to non-GAAP operating measures, adjusting for non-recurring items to present core performance [Noninterest Income Reconciliation](index=4&type=section&id=3.1%20Noninterest%20Income%20Reconciliation) This section reconciles GAAP noninterest income to operating noninterest income by adjusting for non-recurring items such as gains on lease termination and FDIC special assessments Noninterest Income Reconciliation (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Noninterest income (GAAP) | $43,219 | $34,708 | $35,656 | $40,522 | $8,091 | $113,583 | $84,234 | | Gain on lease termination | - | - | - | - | - | - | $(2,400) | | FDIC special assessment | - | - | - | - | - | - | $(1,736) | | Noninterest income - operating | $43,219 | $34,708 | $35,656 | $40,522 | $35,300 | $113,583 | $109,043 | [Noninterest Expense Reconciliation](index=4&type=section&id=3.2%20Noninterest%20Expense%20Reconciliation) This section reconciles GAAP noninterest expense to operating noninterest expense by excluding merger-related and other charges, as well as losses from asset sales and FDIC special assessments Noninterest Expense Reconciliation (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Noninterest expense (GAAP) | $150,868 | $147,919 | $141,099 | $143,056 | $143,065 | $439,886 | $435,111 | | Loss on sale of manufactured housing loans | - | - | - | - | $(27,209) | - | $(27,209) | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | $(5,100) | - | - | $(5,100) | | FDIC special assessment | - | - | - | - | $(1,736) | - | $(1,736) | | Merger-related and other charges | $(3,468) | $(4,833) | $(1,297) | $(2,203) | $(2,176) | $(9,598) | $(6,420) | | Noninterest expense - operating | $147,400 | $143,086 | $139,802 | $140,853 | $140,889 | $430,288 | $421,855 | [Net Income to Operating Income Reconciliation](index=4&type=section&id=3.3%20Net%20Income%20to%20Operating%20Income%20Reconciliation) This section reconciles GAAP net income to operating net income by adjusting for non-operating items such as losses on asset sales, gains on lease terminations, FDIC special assessments, and merger-related charges Net Income to Operating Income Reconciliation (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Net income (GAAP) | $91,494 | $78,733 | $71,413 | $75,804 | $47,347 | $241,640 | $176,593 | | Loss on sale of manufactured housing loans | - | - | - | - | $27,209 | - | $27,209 | | Gain on lease termination | - | - | - | - | - | - | $(2,400) | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | $5,100 | | FDIC special assessment | - | - | - | - | - | - | $1,736 | | Merger-related and other charges | $3,468 | $4,833 | $1,297 | $2,203 | $2,176 | $9,598 | $6,420 | | Income tax benefit of non-operating items | $(751) | $(1,047) | $(281) | $(471) | $(6,276) | $(2,079) | $(8,231) | | Net income - operating | $94,211 | $82,519 | $72,429 | $77,536 | $70,456 | $249,159 | $206,427 | [Net Income to Pre-tax Pre-provision Income Reconciliation](index=4&type=section&id=3.4%20Net%20Income%20to%20Pre-tax%20Pre-provision%20Income%20Reconciliation) This section reconciles GAAP net income to pre-tax pre-provision income by adding back income tax expense and provision for credit losses, providing a view of profitability before these items Net Income to Pre-tax Pre-provision Income Reconciliation (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Net income (GAAP) | $91,494 | $78,733 | $71,413 | $75,804 | $47,347 | $241,640 | $176,593 | | Income tax expense | $26,579 | $21,769 | $19,746 | $20,606 | $12,437 | $68,094 | $50,003 | | Provision for credit losses | $7,907 | $11,818 | $15,419 | $11,389 | $14,428 | $35,144 | $39,562 | | Pre-tax pre-provision income | $125,980 | $112,320 | $106,578 | $107,799 | $74,212 | $344,878 | $266,158 | [Diluted Income Per Common Share Reconciliation](index=4&type=section&id=3.5%20Diluted%20Income%20Per%20Common%20Share%20Reconciliation) This section reconciles GAAP diluted income per common share to operating diluted income per common share by adjusting for non-operating items, providing a clearer view of per-share earnings from core operations Diluted Income Per Common Share Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Diluted income per common share (GAAP) | $0.70 | $0.63 | $0.58 | $0.61 | $0.38 | $1.91 | $1.43 | | Loss on sale of manufactured housing loans | - | - | - | - | $0.18 | - | $0.18 | | Gain on lease termination | - | - | - | - | - | - | $(0.01) | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | $0.03 | | FDIC special assessment | - | - | - | - | - | - | $0.01 | | Merger-related and other charges | $0.02 | $0.03 | $0.01 | $0.02 | $0.01 | $0.06 | $0.04 | | Deemed dividend on preferred stock redemption | $0.03 | - | - | - | - | $0.03 | - | | Diluted income per common share - operating | $0.75 | $0.66 | $0.59 | $0.63 | $0.57 | $2.00 | $1.67 | [Book Value Per Common Share Reconciliation](index=4&type=section&id=3.6%20Book%20Value%20Per%20Common%20Share%20Reconciliation) This section provides the reconciliation of GAAP book value per common share to tangible book value per common share, adjusting for goodwill and other intangible assets Book Value Per Common Share Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Book value per common share (GAAP) | $29.44 | $28.89 | $28.42 | $27.87 | $27.68 | $29.44 | $27.68 | | Tangible book value per common share | $21.59 | $21.00 | $20.58 | $20.00 | $19.66 | $21.59 | $19.66 | [Return on Common Equity Reconciliation](index=4&type=section&id=3.7%20Return%20on%20Common%20Equity%20Reconciliation) This section reconciles GAAP return on common equity to operating return on common equity by adjusting for non-operating items, providing a clearer measure of profitability from core operations relative to common equity Return on Common Equity Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Return on common equity (GAAP) | 9.20% | 8.45% | 7.89% | 8.40% | 5.20% | 8.53% | 6.61% | | Loss on sale of manufactured housing loans | - | - | - | - | 2.43% | - | 0.82% | | Gain on lease termination | - | - | - | - | - | - | (0.07)% | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | 0.16% | | FDIC special assessment | - | - | - | - | - | - | 0.05% | | Merger-related and other charges | 0.29% | 0.42% | 0.12% | 0.20% | 0.19% | 0.27% | 0.19% | | Deemed dividend on preferred stock redemption | 0.34% | - | - | - | - | 0.12% | - | | Return on common equity - operating | 9.83% | 8.87% | 8.01% | 8.60% | 7.82% | 8.92% | 7.76% | [Return on Tangible Common Equity Reconciliation](index=4&type=section&id=3.8%20Return%20on%20Tangible%20Common%20Equity%20Reconciliation) This section reconciles operating return on common equity to operating return on tangible common equity by adjusting for the effect of goodwill and other intangibles, providing a more precise measure of profitability relative to tangible common equity Return on Tangible Common Equity Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Return on common equity - operating | 9.83% | 8.87% | 8.01% | 8.60% | 7.82% | 8.92% | 7.76% | | Effect of goodwill and other intangibles | 3.73% | 3.47% | 3.20% | 3.52% | 3.35% | 3.65% | 3.42% | | Return on tangible common equity - operating | 13.56% | 12.34% | 11.21% | 12.12% | 11.17% | 12.57% | 11.18% | [Return on Assets Reconciliation](index=4&type=section&id=3.9%20Return%20on%20Assets%20Reconciliation) This section reconciles GAAP return on assets to operating return on assets by adjusting for non-operating items such as losses on asset sales, FDIC special assessments, and merger-related charges, providing a clearer measure of asset utilization efficiency from core operations Return on Assets Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Return on assets (GAAP) | 1.29% | 1.11% | 1.02% | 1.06% | 0.67% | 1.16% | 0.85% | | Loss on sale of manufactured housing loans | - | - | - | - | 0.31% | - | 0.10% | | Gain on lease termination | - | - | - | - | - | - | (0.02)% | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | 0.02% | | FDIC special assessment | - | - | - | - | - | - | 0.01% | | Merger-related and other charges | 0.05% | 0.04% | 0.02% | 0.02% | 0.03% | 0.03% | 0.02% | | Return on assets - operating | 1.33% | 1.16% | 1.04% | 1.08% | 1.01% | 1.19% | 0.99% | [Return on Assets to Return on Assets - Pre-tax Pre-provision Reconciliation](index=5&type=section&id=3.10%20Return%20on%20Assets%20to%20Return%20on%20Assets%20-%20Pre-tax%20Pre-provision%20Reconciliation) This section reconciles GAAP return on assets to pre-tax pre-provision operating return on assets by adding back income tax expense, provision for credit losses, and adjusting for non-operating items, providing a measure of core operating profitability before taxes and credit provisions Return on Assets to Return on Assets - Pre-tax Pre-provision Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Return on assets (GAAP) | 1.29% | 1.11% | 1.02% | 1.06% | 0.67% | 1.16% | 0.85% | | Income tax expense | 0.38% | 0.31% | 0.29% | 0.30% | 0.19% | 0.33% | 0.25% | | Provision for credit losses | 0.11% | 0.17% | 0.23% | 0.16% | 0.21% | 0.17% | 0.19% | | Loss on sale of manufactured housing loans | - | - | - | - | 0.40% | - | 0.13% | | Gain on lease termination | - | - | - | - | - | - | (0.01)% | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | 0.03% | | FDIC special assessment | - | - | - | - | - | - | 0.01% | | Merger-related and other charges | 0.05% | 0.07% | 0.01% | 0.03% | 0.03% | 0.04% | 0.03% | | Return on assets - pre-tax pre-provision - operating | 1.83% | 1.66% | 1.55% | 1.55% | 1.50% | 1.70% | 1.48% | [Efficiency Ratio Reconciliation](index=5&type=section&id=3.11%20Efficiency%20Ratio%20Reconciliation) This section reconciles GAAP efficiency ratio to operating efficiency ratio by adjusting for non-operating items, providing a clearer measure of operational efficiency from core activities Efficiency Ratio Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Efficiency ratio (GAAP) | 54.30% | 56.69% | 56.74% | 56.05% | 65.51% | 55.86% | 61.76% | | Loss on sale of manufactured housing loans | - | - | - | - | (7.15)% | - | (2.25)% | | Gain on lease termination | - | - | - | - | - | - | 0.21% | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | (0.73)% | | FDIC special assessment | - | - | - | - | - | - | (0.24)% | | Merger-related and other charges | (1.25)% | (1.85)% | (0.52)% | (0.87)% | (0.99)% | (1.22)% | (0.91)% | | Efficiency ratio - operating | 53.05% | 54.84% | 56.22% | 55.18% | 57.37% | 54.64% | 57.84% | [Tangible Common Equity to Tangible Assets Reconciliation](index=5&type=section&id=3.12%20Tangible%20Common%20Equity%20to%20Tangible%20Assets%20Reconciliation) This section reconciles GAAP equity to total assets to tangible common equity to tangible assets by adjusting for goodwill and other intangibles, and the effect of preferred equity, providing a more conservative measure of capital strength Tangible Common Equity to Tangible Assets Reconciliation | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Equity to total assets (GAAP) | 12.78% | 12.86% | 12.56% | 12.38% | 12.45% | 12.78% | 12.45% | | Effect of goodwill and other intangibles | (3.07)% | (3.10)% | (3.06)% | (3.09)% | (3.20)% | (3.07)% | (3.20)% | | Effect of preferred equity | - | (0.31)% | (0.32)% | (0.32)% | (0.32)% | - | (0.32)% | | Tangible common equity to tangible assets | 9.71% | 9.45% | 9.18% | 8.97% | 8.93% | 9.71% | 8.93% | [Loan Portfolio and Credit Quality](index=6&type=section&id=4.%20Loan%20Portfolio%20and%20Credit%20Quality) This section analyzes the company's loan portfolio composition and key credit quality metrics, including nonaccrual loans and net charge-offs [Loan Portfolio Composition at Period-End](index=6&type=section&id=4.1%20Loan%20Portfolio%20Composition%20at%20Period-End) The loan portfolio shows continued growth, primarily driven by commercial loans and home equity, with notable expansion in Florida and South Carolina markets Loan Portfolio Composition (in millions) | Loan Category | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Owner occupied commercial RE | $3,678 | $3,563 | $3,419 | $3,398 | $3,323 | | Income producing commercial RE | $4,534 | $4,548 | $4,416 | $4,361 | $4,259 | | Commercial & industrial | $2,593 | $2,516 | $2,506 | $2,428 | $2,313 | | Commercial construction | $1,734 | $1,752 | $1,681 | $1,656 | $1,785 | | Equipment financing | $1,808 | $1,778 | $1,723 | $1,663 | $1,603 | | **Total commercial** | **$14,347** | **$14,157** | **$13,745** | **$13,506** | **$13,283** | | Residential mortgage | $3,198 | $3,210 | $3,218 | $3,232 | $3,263 | | Home equity | $1,252 | $1,180 | $1,099 | $1,065 | $1,015 | | Residential construction | $178 | $174 | $171 | $178 | $189 | | Manufactured housing (1) | - | - | - | $2 | $2 | | Consumer | $192 | $191 | $183 | $186 | $188 | | Other | $8 | $9 | $9 | $7 | $24 | | **Total loans** | **$19,175** | **$18,921** | **$18,425** | **$18,176** | **$17,964** | Loan Growth by Market (in millions) | Market | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Georgia | $4,584 | $4,551 | $4,484 | $4,447 | $4,470 | | South Carolina | $2,926 | $2,872 | $2,821 | $2,815 | $2,782 | | North Carolina | $2,676 | $2,626 | $2,666 | $2,644 | $2,586 | | Tennessee | $1,902 | $1,881 | $1,880 | $1,799 | $1,848 | | Florida | $3,040 | $2,966 | $2,572 | $2,527 | $2,423 | | Alabama | $1,054 | $1,016 | $1,009 | N/A | N/A | | Commercial Banking Solutions | $2,993 | $3,009 | $2,993 | $2,948 | $2,859 | | **Total loans** | **$19,175** | **$18,921** | **$18,425** | **$18,176** | **$17,964** | [Credit Quality Metrics](index=7&type=section&id=4.2%20Credit%20Quality%20Metrics) Nonaccrual loans increased quarter-over-quarter, particularly in commercial and residential mortgage categories, while net charge-offs decreased Nonaccrual Loans and NPAs (in thousands) | Category | Q3 2025 | Q2 2025 | Q1 2025 | | :-------------------------- | :-------- | :-------- | :-------- | | Owner occupied RE | $10,275 | $8,207 | $8,949 | | Income producing RE | $10,884 | $14,624 | $16,536 | | Commercial & industrial | $25,754 | $15,422 | $22,396 | | Commercial construction | $3,198 | $1,368 | $5,558 | | Equipment financing | $9,716 | $11,731 | $8,818 | | **Total commercial** | **$59,827** | **$51,352** | **$62,257** | | Residential mortgage | $28,978 | $22,597 | $22,756 | | Home equity | $5,234 | $4,093 | $4,091 | | Residential construction | $1,241 | $1,203 | $811 | | Consumer | $1,163 | $1,207 | $1,423 | | **Total nonaccrual loans** | **$96,443** | **$80,452** | **$91,338** | | OREO and repossessed assets | $1,473 | $3,507 | $1,952 | | **Total NPAs** | **$97,916** | **$83,959** | **$93,290** | Net Charge-Offs (Recoveries) by Category (in thousands) | Category | Q3 2025 Net Charge-Offs | Q3 2025 NCOs to Avg Loans (1) | Q2 2025 Net Charge-Offs | Q2 2025 NCOs to Avg Loans (1) | Q1 2025 Net Charge-Offs | Q1 2025 NCOs to Avg Loans (1) | | :-------------------------- | :---------------------- | :---------------------------- | :---------------------- | :---------------------------- | :---------------------- | :---------------------------- | | Owner occupied RE | $2,497 | 0.28% | $470 | 0.05% | $126 | 0.02% | | Income producing RE | $(106) | (0.01)% | $270 | 0.08% | $718 | 0.07% | | Commercial & industrial | $(1,132) | (0.18)% | $1,027 | 0.16% | $2,447 | 0.40% | | Commercial construction | $491 | 0.11% | $89 | 0.02% | $(138) | (0.03)% | | Equipment financing | $5,487 | 1.23% | $4,963 | 1.16% | $5,042 | 1.21% | | **Total commercial** | **$7,237** | **0.20%** | **$7,482** | **0.22%** | **$8,195** | **0.24%** | | Residential mortgage | $(250) | (0.03)% | $313 | 0.04% | $(1) | - | | Home equity | $80 | 0.01% | $(72) | (0.03)% | $(62) | (0.02)% | | Residential construction | $12 | 0.03% | $(8) | (0.02)% | $219 | 0.51% | | Consumer | $667 | 1.39% | $511 | 1.11% | $1,256 | 2.76% | | **Total** | **$7,676** | **0.16%** | **$8,225** | **0.18%** | **$9,607** | **0.21%** | (1) Annualized [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=5.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets and statements of income, along with a detailed net interest analysis [Consolidated Balance Sheets](index=8&type=section&id=5.1%20Consolidated%20Balance%20Sheets) The balance sheet shows increased total assets, driven by loan and deposit growth, and strengthened common shareholders' equity through preferred stock redemption Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | Sep 30, 2025 | Dec 31, 2024 | Change | | :------------------------------------ | :----------- | :----------- | :----- | | Cash and cash equivalents | $613,431 | $519,873 | Up $93,558 | | Debt securities available-for-sale | $3,889,263 | $4,436,291 | Down $547,028 | | Debt securities held-to-maturity | $2,274,099 | $2,368,107 | Down $94,008 | | Loans and leases held for investment | $19,174,794 | $18,175,980 | Up $998,814 | | Loans and leases, net | $18,959,003 | $17,968,982 | Up $990,021 | | Goodwill and other intangible assets, net | $971,071 | $956,643 | Up $14,428 | | **Total assets** | **$28,143,473** | **$27,720,258** | **Up $423,215** | | Noninterest-bearing demand deposits | $6,444,067 | $6,211,182 | Up $232,885 | | NOW and interest-bearing demand deposits | $5,860,653 | $6,141,342 | Down $280,689 | | Money market deposits | $6,801,387 | $6,398,144 | Up $403,243 | | Savings deposits | $1,085,237 | $1,100,591 | Down $15,354 | | Time deposits | $3,673,718 | $3,441,424 | Up $232,294 | | Brokered deposits | $155,556 | $168,292 | Down $12,736 | | **Total deposits** | **$24,020,618** | **$23,460,975** | **Up $559,643** | | Short-term borrowings | - | $195,000 | Down $195,000 | | Long-term debt | $155,251 | $254,152 | Down $98,901 | | **Total liabilities** | **$24,546,622** | **$24,288,131** | **Up $258,491** | | Preferred stock | - | $88,266 | Down $88,266 | | Common stock | $121,553 | $119,364 | Up $2,189 | | Retained earnings | $858,395 | $714,138 | Up $144,257 | | Accumulated other comprehensive loss | $(163,923) | $(212,919) | Up $48,996 | | **Total shareholders' equity** | **$3,596,851** | **$3,432,127** | **Up $164,724** | [Consolidated Statements of Income](index=9&type=section&id=5.2%20Consolidated%20Statements%20of%20Income) The income statement reflects strong year-over-year growth in net interest revenue and noninterest income, leading to significant increases in total revenue and net income Consolidated Statements of Income (in thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :-------- | :-------- | :--------- | :--------- | | Total interest revenue | $353,850 | $349,086 | $1,036,572 | $1,032,779 | | Total interest expense | $120,221 | $139,900 | $365,391 | $415,744 | | **Net interest revenue** | **$233,629** | **$209,186** | **$671,181** | **$617,035** | | Total noninterest income | $43,219 | $8,091 | $113,583 | $84,234 | | **Total revenue** | **$276,848** | **$217,277** | **$784,764** | **$701,269** | | Provision for credit losses | $7,907 | $14,428 | $35,144 | $39,562 | | Total noninterest expense | $150,868 | $143,065 | $439,886 | $435,111 | | Income before income taxes | $118,073 | $59,784 | $309,734 | $226,596 | | Income tax expense | $26,579 | $12,437 | $68,094 | $50,003 | | **Net income** | **$91,494** | **$47,347** | **$241,640** | **$176,593** | | Preferred stock dividends and deemed dividend at redemption | $4,848 | $1,573 | $7,994 | $4,719 | | Earnings allocated to participating securities | $507 | $272 | $1,356 | $888 | | **Net income available to common shareholders** | **$86,139** | **$45,502** | **$232,290** | **$170,886** | | Basic EPS | $0.71 | $0.38 | $1.92 | $1.43 | | Diluted EPS | $0.70 | $0.38 | $1.91 | $1.43 | [Average Consolidated Balance Sheets and Net Interest Analysis](index=10&type=section&id=5.3%20Average%20Consolidated%20Balance%20Sheets%20and%20Net%20Interest%20Analysis) Net interest analysis highlights improved net interest margin and spread for the quarter and year-to-date, driven by lower interest-bearing liability costs Net Interest Analysis (Q3 2025 vs Q3 2024, in thousands, FTE) | Metric | Q3 2025 Average Balance | Q3 2025 Interest | Q3 2025 Average Rate | Q3 2024 Average Balance | Q3 2024 Interest | Q3 2024 Average Rate | | :------------------------------------ | :---------------------- | :--------------- | :------------------- | :---------------------- | :--------------- | :------------------- | | Total interest-earning assets | $25,993,562 | $354,885 | 5.42% | $25,101,056 | $350,180 | 5.55% | | Total interest-bearing liabilities | $17,705,582 | $120,221 | 2.69% | $17,108,872 | $139,900 | 3.25% | | Net interest revenue (FTE) | N/A | $234,664 | N/A | N/A | $210,280 | N/A | | Net interest-rate spread (FTE) | N/A | N/A | 2.73% | N/A | N/A | 2.30% | | Net interest margin (FTE) | N/A | N/A | 3.58% | N/A | N/A | 3.33% | Net Interest Analysis (YTD 2025 vs YTD 2024, in thousands, FTE) | Metric | YTD 2025 Average Balance | YTD 2025 Interest | YTD 2025 Average Rate | YTD 2024 Average Balance | YTD 2024 Interest | YTD 2024 Average Rate | | :------------------------------------ | :--------------------- | :--------------- | :------------------- | :--------------------- | :--------------- | :------------------- | | Total interest-earning assets | $25,889,263 | $1,039,581 | 5.37% | $25,099,636 | $1,035,997 | 5.51% | | Total interest-bearing liabilities | $17,703,774 | $365,391 | 2.76% | $17,078,303 | $415,744 | 3.25% | | Net interest revenue (FTE) | N/A | $674,190 | N/A | N/A | $620,253 | N/A | | Net interest-rate spread (FTE) | N/A | N/A | 2.61% | N/A | N/A | 2.26% | | Net interest margin (FTE) | N/A | N/A | 3.48% | N/A | N/A | 3.30% | - The FTE adjustment for interest revenue on tax-exempt securities and loans totaled **$1.04 million** for Q3 2025 and **$3.01 million** for YTD 2025, using a **25% tax rate**[16](index=16&type=chunk)[19](index=19&type=chunk) [Company Information and Disclosures](index=2&type=section&id=6.%20Company%20Information%20and%20Disclosures) This section provides details on the company's conference call, corporate profile, non-GAAP financial measures, and forward-looking statement cautions [Conference Call Information](index=2&type=section&id=6.1%20Conference%20Call%20Information) United Community Banks, Inc. scheduled a conference call for October 22 at 9:00 a.m. ET to discuss the earnings release and business highlights, with options for pre-registration, dial-in, and webcast access - Conference call to discuss Q3 2025 earnings and business highlights was scheduled for **Wednesday, October 22 at 9:00 a.m. ET**[7](index=7&type=chunk) - Participants could pre-register online or dial in by calling **1-844-676-1337**. A webcast was also available on the company's website, ucbi.com[7](index=7&type=chunk) [About United Community Banks, Inc.](index=12&type=section&id=6.2%20About%20United%20Community%20Banks,%20Inc.) United Community Banks, Inc. is a top 100 U.S. financial institution with $28.1 billion in assets, operating 199 offices across six Southeastern states - United Community Banks, Inc. (NYSE: UCB) is a **top 100 U.S. financial institution**[21](index=21&type=chunk) - As of September 30, 2025, the company had **$28.1 billion in assets** and operated **199 offices** across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee[21](index=21&type=chunk) - The company offers banking, mortgage, and wealth management services, and manages a nationally recognized SBA lending franchise and a national equipment finance subsidiary[21](index=21&type=chunk) - United Community is an **11-time winner** of J.D. Power's award for highest customer satisfaction in the Southeast and was named the **most trusted bank in the region in 2025**[21](index=21&type=chunk) [Non-GAAP Financial Measures (Explanation)](index=12&type=section&id=6.3%20Non-GAAP%20Financial%20Measures%20(Explanation)) This section clarifies non-GAAP financial measures provide supplemental information for evaluating underlying performance trends by excluding non-recurring items - The press release contains financial information determined by methods other than in accordance with GAAP, referred to as **non-GAAP measures**[22](index=22&type=chunk) - These non-GAAP measures exclude merger-related and other charges not considered part of recurring operations, aiming to provide useful supplemental information for evaluating underlying performance trends[22](index=22&type=chunk) - Examples of non-GAAP measures include 'operating net income,' 'tangible book value per common share,' and 'operating efficiency ratio'[22](index=22&type=chunk) - These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and may not be comparable to non-GAAP measures presented by other companies[22](index=22&type=chunk) [Caution About Forward-Looking Statements](index=13&type=section&id=6.4%20Caution%20About%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially - The press release contains 'forward-looking statements' identifiable by words such as 'may,' 'believe,' 'expect,' 'anticipate,' 'intend,' 'will,' 'should,' 'plan,' 'estimate,' 'continue,' and 'potential'[23](index=23&type=chunk) - Forward-looking statements are not historical facts and represent management's beliefs, but are not guarantees of future performance; actual results may differ materially[23](index=23&type=chunk) - These statements are subject to numerous assumptions, risks, and uncertainties, including general competitive, economic, political, regulatory, and market conditions[23](index=23&type=chunk)[24](index=24&type=chunk) - Shareholders and investors should not place undue reliance on forward-looking statements, and United undertakes no obligation to update or revise them, except as required by law[26](index=26&type=chunk)

```markdown [Glossary of Defined Terms](index=3&type=section&id=Glossary%20of%20Defined%20Terms) This section provides definitions for key terms and acronyms used throughout the report, ensuring clarity and consistent understanding of financial and regulatory terminology - The glossary defines terms such as **ACL** (Allowance for credit losses), **AFS** (Available-for-sale), **ANB** (ANB Holdings, Inc.), **AOCI** (Accumulated other comprehensive income (loss)), **CECL** (Current expected credit losses), **CET1** (Common equity tier 1), **CRE** (Commercial real estate), **FHLB** (Federal Home Loan Bank), **FTE** (Fully taxable equivalent), **GAAP** (Accounting principles generally accepted in the United States of America), **HTM** (Held-to-maturity), **MD&A** (Management's Discussion and Analysis of Financial Condition and Results of Operations), **MBS** (Mortgage-backed securities), **NPA** (Nonperforming asset), **OCI** (Other comprehensive income (loss)), **OREO** (Other real estate owned), **PCD** (Purchased credit deteriorated), and **SBA** (United States Small Business Administration)[5](index=5&type=chunk) [Cautionary Note Regarding Forward-looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-looking%20Statements) This section advises readers that the report contains forward-looking statements, which are subject to known and unknown risks, uncertainties, assumptions, and changes in circumstances that could cause actual results to differ materially from those anticipated - Forward-looking statements are identified by terms like **'believes'**, **'expects'**, **'may'**, **'will'**, **'could'**, **'should'**, **'projects'**, **'plans'**, **'goal'**, **'targets'**, **'potential'**, **'estimates'**, **'pro forma'**, **'seeks'**, **'intends'**, or **'anticipates'**[6](index=6&type=chunk) - Key risk factors include negative economic and political conditions, changes in loan underwriting, potential effects of pandemics, strategic/market/operational/liquidity/interest rate risks, unanticipated adverse conditions in local economies, loan concentration risks, risks of expansion, ability to attract and retain key employees, competition, fraudulent conduct, cybersecurity risks, reliance on third parties, regulatory initiatives, capital availability, legislative/regulatory/accounting changes, volatility in ACL, adverse legal/regulatory results, asset impairment, limitations on dividend payments, and destabilizing events beyond control[9](index=9&type=chunk) - The company disclaims any obligation to update or revise forward-looking statements, which speak only as of the filing date[8](index=8&type=chunk) [PART I - Financial Information](index=6&type=section&id=PART%20I%20-%20Financial%20Information) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including the Balance Sheets, Statements of Income, Comprehensive Income, Changes in Shareholders' Equity, and Cash Flows, providing a snapshot of the company's financial position and performance for the reported periods [Consolidated Balance Sheets (unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20%28unaudited%29) The consolidated balance sheets show the company's assets, liabilities, and shareholders' equity at June 30, 2025, and December 31, 2024. Total assets increased by **$365.26 million**, driven by growth in loans and leases, net, and cash and cash equivalents, while total liabilities also increased, primarily due to higher deposits | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | **ASSETS** | | | | | | Cash and cash equivalents | $574,956 | $519,873 | $55,083 | 10.59% | | Loans and leases, net | $18,704,375 | $17,968,982 | $735,393 | 4.09% | | Total assets | $28,085,521 | $27,720,258 | $365,263 | 1.32% | | **LIABILITIES** | | | | | | Total deposits | $23,963,012 | $23,460,975 | $502,037 | 2.14% | | Short-term borrowings | $— | $195,000 | $(195,000) | -100.00% | | Long-term debt | $155,143 | $254,152 | $(99,009) | -38.96% | | Total liabilities | $24,472,597 | $24,288,131 | $184,466 | 0.76% | | **SHAREHOLDERS' EQUITY** | | | | | | Total shareholders' equity | $3,612,924 | $3,432,127 | $180,797 | 5.27% | [Consolidated Statements of Income (unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20%28unaudited%29) The consolidated statements of income show an increase in net income for both the three and six months ended June 30, 2025, compared to the same periods in 2024. This was primarily driven by higher net interest revenue and lower interest expense, despite a decrease in total noninterest income | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------- | | Total interest revenue | $347,365 | $346,965 | 0.12% | | Total interest expense | $121,834 | $138,265 | -11.89% | | Net interest revenue | $225,531 | $208,700 | 8.07% | | Total noninterest income | $34,708 | $36,556 | -5.19% | | Provision for credit losses | $11,818 | $12,235 | -3.39% | | Total noninterest expense | $147,919 | $147,044 | 0.60% | | Net income | $78,733 | $66,615 | 18.19% | | Diluted EPS | $0.63 | $0.54 | 16.67% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------- | | Total interest revenue | $682,722 | $683,693 | -0.14% | | Total interest expense | $245,170 | $275,844 | -11.12% | | Net interest revenue | $437,552 | $407,849 | 7.28% | | Total noninterest income | $70,364 | $76,143 | -7.59% | | Provision for credit losses | $27,237 | $25,134 | 8.37% | | Total noninterest expense | $289,018 | $292,046 | -1.04% | | Net income | $150,146 | $129,246 | 16.17% | | Diluted EPS | $1.21 | $1.05 | 15.24% | [Consolidated Statements of Comprehensive Income (unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28unaudited%29) The consolidated statements of comprehensive income show a significant increase in total comprehensive income for both the three and six months ended June 30, 2025, primarily driven by higher net income and substantial net unrealized gains on available-for-sale securities | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------- | | Net income | $78,733 | $66,615 | 18.19% | | Net unrealized gains on AFS securities | $9,046 | $575 | 1473.22% | | Total other comprehensive income | $9,389 | $2,098 | 347.52% | | Comprehensive income | $88,122 | $68,713 | 28.24% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------- | | Net income | $150,146 | $129,246 | 16.17% | | Net unrealized gains on AFS securities | $35,496 | $722 | 4816.34% | | Total other comprehensive income | $35,749 | $4,655 | 667.97% | | Comprehensive income | $185,895 | $133,901 | 38.83% | [Consolidated Statements of Changes in Shareholders' Equity (unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity%20%28unaudited%29) The consolidated statements of changes in shareholders' equity reflect an increase in total shareholders' equity, primarily driven by net income, other comprehensive income, and the impact of acquisitions, partially offset by common stock dividends and repurchases | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total shareholders' equity | $3,612,924 | $3,432,127 | $180,797 | 5.27% | | Net income (6 months) | $150,146 | N/A | N/A | N/A | | Other comprehensive income (6 months) | $35,749 | N/A | N/A | N/A | | Impact of acquisitions (6 months) | $65,738 | N/A | N/A | N/A | | Purchases of common stock (6 months) | $(13,942) | N/A | N/A | N/A | | Common stock dividends ($0.48 per share for 6 months) | $(58,548) | N/A | N/A | N/A | [Consolidated Statements of Cash Flows (unaudited)](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28unaudited%29) The consolidated statements of cash flows show a positive net change in cash and cash equivalents for the six months ended June 30, 2025, contrasting with a significant decrease in the prior year. This was primarily due to net cash provided by operating and investing activities, and a reduced net cash outflow from financing activities | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | | Net cash provided by operating activities | $195,468 | $193,901 | $1,567 | | Net cash provided by (used in) investing activities | $103,137 | $(247,269) | $350,406 | | Net cash used in financing activities | $(243,522) | $(387,644) | $144,122 | | Net change in cash and cash equivalents | $55,083 | $(441,012) | $496,095 | | Cash and cash equivalents, end of period | $574,956 | $562,863 | $12,093 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the figures presented in the consolidated financial statements, covering accounting policies, acquisitions, investment securities, loans and credit losses, derivatives, goodwill, fair value measurements, earnings per share, regulatory matters, and commitments [Note 1 – Basis of Presentation](index=11&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) The financial statements are prepared in accordance with GAAP and banking regulatory guidelines, are unaudited, and include all necessary normal and recurring adjustments for fair presentation. Interim results are not indicative of full-year performance - United's accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities[20](index=20&type=chunk) - The accompanying interim consolidated financial statements have not been audited, but all material intercompany balances and transactions have been eliminated[20](index=20&type=chunk) - Management believes all necessary accounting adjustments, which are normal and recurring accruals, have been made for fair presentation, but interim results are not necessarily indicative of full-year results[21](index=21&type=chunk) [Note 2 – Supplemental Cash Flow Information](index=11&type=section&id=Note%202%20%E2%80%93%20Supplemental%20Cash%20Flow%20Information) This note provides a supplemental schedule of significant non-cash investing and financing activities, highlighting commitments to fund other investments and details of assets acquired and liabilities assumed in acquisitions | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Commitments to fund other investments | $8,906 | $9,214 | | Acquisitions: Assets acquired | $446,504 | $— | | Acquisitions: Liabilities assumed | $380,766 | $— | | Acquisitions: Common stock issued for net assets acquired | $65,738 | $— | [Note 3 – Acquisitions](index=12&type=section&id=Note%203%20%E2%80%93%20Acquisitions) On May 1, 2025, United acquired ANB, expanding its presence in Florida. The acquisition involved issuing common stock and resulted in recorded goodwill and a core deposit intangible. Pro forma information indicates the acquisition's impact on revenue and net income - United acquired ANB on **May 1, 2025**, in a stock transaction, expanding its presence in Oakland Park, Florida[26](index=26&type=chunk) | ANB Acquisition Details (May 1, 2025, in thousands) | | | :------------------------------------ | :------------- | | Total assets acquired | $428,475 | | Total liabilities assumed | $380,766 | | Common stock issued (2,380,952 shares) | $65,738 | | Goodwill recorded | $18,029 | | Core deposit intangible | $6,290 | | Loans held for investment acquired | $301,303 | | Deposits acquired | $374,468 | | Pro Forma Impact (Six Months Ended June 30, 2025, in thousands) | | | :------------------------------------------------ | :------------- | | Actual ANB results included in statement of income since acquisition date: Revenue | $2,290 | | Actual ANB results included in statement of income since acquisition date: Net Income | $(1,026) | | Supplemental consolidated pro forma as if ANB had been acquired January 1, 2024: Revenue | $513,212 | | Supplemental consolidated pro forma as if ANB had been acquired January 1, 2024: Net Income | $154,518 | [Note 4 – Investment Securities](index=13&type=section&id=Note%204%20%E2%80%93%20Investment%20Securities) This note details the company's investment securities portfolio, distinguishing between held-to-maturity (HTM) and available-for-sale (AFS) debt securities. It provides amortized cost, fair value, and unrealized gains and losses, noting that unrealized losses are primarily due to interest rate changes and no ACL was required for these portfolios | Investment Securities (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | **HTM Debt Securities** | | | | Amortized Cost | $2,306,730 | $2,368,107 | | Fair Value | $1,935,748 | $1,944,126 | | Gross Unrealized Losses | $371,010 | $423,992 | | **AFS Debt Securities** | | | | Amortized Cost | $4,243,667 | $4,664,300 | | Fair Value | $4,075,323 | $4,436,291 | | Gross Unrealized Losses | $179,532 | $231,896 | | Pledged Securities (carrying value) | $2,810,000 | $3,200,000 | - At June 30, 2025, there were **519 AFS debt securities** and **300 HTM debt securities** in an unrealized loss position, primarily due to changes in interest rates. The company does not intend to sell these securities prior to the recovery of their amortized cost basis[42](index=42&type=chunk) - **No Allowance for Credit Losses (ACL)** was recorded on the HTM or AFS portfolios at June 30, 2025, and December 31, 2024, due to the high credit quality of the portfolios and de minimis calculated credit losses[43](index=43&type=chunk) [Note 5 – Loans and Leases and Allowance for Credit Losses](index=17&type=section&id=Note%205%20%E2%80%93%20Loans%20and%20Leases%20and%20Allowance%20for%20Credit%20Losses) This note details the loan and lease portfolio composition, including commercial, residential, and consumer loans. It provides information on past due and nonaccrual loans, lease receivables, credit quality indicators, and the activity within the Allowance for Credit Losses (ACL), which increased due to loan growth and the ANB acquisition | Loan Portfolio Composition (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total commercial loans | $14,156,507 | $13,505,724 | | Total residential mortgage | $3,210,430 | $3,231,479 | | Total loans | $18,920,875 | $18,175,980 | | Less ACL - loans | $(216,500) | $(206,998) | | Loans, net | $18,704,375 | $17,968,982 | | Nonaccrual Loans (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total commercial nonaccrual loans | $51,352 | $82,695 | | Total nonaccrual loans | $80,452 | $113,579 | | Loans for which repayment is expected through collateral operation/sale | $36,000 | $75,100 | | ACL Activity (Six Months Ended June 30, 2025, in thousands) | | | :------------------------------------ | :------------- | | Beginning Balance (ACL - loans) | $206,998 | | Initial ACL - PCD loans (ANB) | $1,251 | | Charge-Offs | $(24,140) | | Recoveries | $6,308 | | Provision | $26,083 | | Ending Balance (ACL - loans) | $216,500 | | Total ACL (loans + unfunded commitments) | $228,045 | [Note 6 – Derivatives and Hedging Activities](index=26&type=section&id=Note%206%20%E2%80%93%20Derivatives%20and%20Hedging%20Activities) This note outlines the company's use of derivative financial instruments for hedging interest rate risk (cash flow and fair value hedges) and for non-hedging purposes (customer derivatives, dealer offsets, mortgage banking). It details the fair value of these instruments and their impact on net interest income | Derivative Financial Instruments (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------ | :---------------- | | Total derivatives (Fair Value Asset) | $39,824 | $46,883 | | Total derivatives (Fair Value Liability) | $60,877 | $77,834 | | Notional Amount (Hedging Instruments) | $2,972,731 | $2,591,507 | | Notional Amount (Non-Hedging Instruments) | $3,085,930 | $2,766,326 | - United uses interest rate caps and swaps for cash flow hedges on variable-rate subordinated debt and trust preferred securities, expecting to reclassify **$4.03 million** of gains from AOCI into earnings over the next twelve months[92](index=92&type=chunk) - Fair value hedges are used to manage exposure to changes in fair value due to interest rate changes on fixed-rate financial instruments, with all AFS debt securities and loans designated under the portfolio layer method[93](index=93&type=chunk)[97](index=97&type=chunk) [Note 7 – Goodwill and Other Intangible Assets](index=28&type=section&id=Note%207%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets) This note presents the carrying amounts of goodwill and other intangible assets, detailing changes due to the ANB acquisition and the amortization of core deposit intangibles. Goodwill increased by **$18.0 million** from the ANB acquisition | Goodwill and Other Intangible Assets (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Net core deposit intangible | $49,266 | $49,553 | | Goodwill | $925,119 | $907,090 | | Total goodwill and other intangible assets, net | $974,385 | $956,643 | - During the second quarter of 2025, United recorded **$18.0 million** in goodwill and **$6.29 million** in core deposit intangible assets in connection with the ANB acquisition[107](index=107&type=chunk)[109](index=109&type=chunk) - The estimated aggregate amortization expense for finite-lived intangibles is **$6.50 million** for the remainder of 2025 and **$11.50 million** for 2026[111](index=111&type=chunk) [Note 8 – Assets and Liabilities Measured at Fair Value](index=29&type=section&id=Note%208%20%E2%80%93%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) This note outlines the company's fair value measurements, categorizing assets and liabilities into Level 1, 2, or 3 based on the observability of inputs. It details recurring fair value measurements for various financial instruments and provides a reconciliation of Level 3 assets and liabilities, which involve significant unobservable inputs - Fair values are categorized into a three-level hierarchy: **Level 1** (quoted prices in active markets for identical assets/liabilities), **Level 2** (quoted prices for similar assets/liabilities or observable inputs), and **Level 3** (model-based techniques with significant unobservable inputs)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) | Assets Measured at Fair Value on a Recurring Basis (June 30, 2025, in thousands) | | | :------------------------------------ | :------------- | | Total Level 1 Assets | $348,907 | | Total Level 2 Assets | $3,809,705 | | Total Level 3 Assets | $62,145 | | Total Assets | $4,220,757 | | Total Liabilities | $75,294 | - Significant unobservable inputs for **Level 3** assets include discount rates and prepayment rates for residential mortgage servicing rights, pull-through rates for derivative assets (mortgage), and discount rates and probability of achievement for contingent consideration receivable[121](index=121&type=chunk) [Note 9 – Reclassifications Out of AOCI](index=33&type=section&id=Note%209%20%E2%80%93%20Reclassifications%20Out%20of%20AOCI) This note details amounts reclassified out of Accumulated Other Comprehensive Income (AOCI) into net income, including realized net gains on AFS securities, amortization of unrealized losses on HTM securities, reclassifications related to cash flow hedges, and amortization of defined benefit pension plan costs | Reclassifications Out of AOCI (Six Months Ended June 30, in thousands) | | | :------------------------------------------------ | :------------- | | Realized net gains on AFS securities (net of tax) | $222 (2025), $0 (2024) | | Amortization of unrealized losses on HTM securities (net of tax) | $(2,996) (2025), $(3,342) (2024) | | Reclassifications related to cash flow hedges (net of tax) | $1,682 (2025), $2,147 (2024) | | Amortization of defined benefit pension plan costs (net of tax) | $25 (2025), $(67) (2024) | | Total reclassifications for the period (net of tax) | $(1,067) (2025), $(1,262) (2024) | [Note 10 – Earnings Per Share](index=34&type=section&id=Note%2010%20%E2%80%93%20Earnings%20Per%20Share) This note provides the computation of basic and diluted earnings per share (EPS) for the reported periods, showing an increase in both basic and diluted EPS for the three and six months ended June 30, 2025, compared to 2024 | Earnings Per Share (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net income available to common shareholders | $76,722 | $64,674 | | Basic EPS | $0.63 | $0.54 | | Diluted EPS | $0.63 | $0.54 | | Weighted average common shares outstanding (Diluted) | 121,432 | 119,785 | | Earnings Per Share (in thousands, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common shareholders | $146,150 | $125,387 | | Basic EPS | $1.21 | $1.05 | | Diluted EPS | $1.21 | $1.05 | | Weighted average common shares outstanding (Diluted) | 120,820 | 119,763 | - For the three and six months ended June 30, 2025, no potentially dilutive shares from stock options were excluded due to their antidilutive effect, unlike in 2024 where **58,734** and **984** shares were excluded for the respective periods[135](index=135&type=chunk) [Note 11 – Regulatory Matters](index=34&type=section&id=Note%2011%20%E2%80%93%20Regulatory%20Matters) This note confirms that United and its Bank were categorized as 'well-capitalized' under regulatory requirements as of June 30, 2025, and December 31, 2024, exceeding all minimum capital ratios - As of June 30, 2025, United and the Bank were categorized as **well-capitalized** under regulatory requirements, exceeding all well-capitalized guideline ratios[136](index=136&type=chunk) | Regulatory Capital Ratios (June 30, 2025) | Minimum | Well Capitalized | United Community Banks, Inc. (Consolidated) | United Community Bank | | :---------------------------------------- | :------ | :--------------- | :------------------------------------------ | :-------------------- | | CET1 capital | 4.5 % | 6.5 % | 13.34 % | 12.60 % | | Tier 1 capital | 6.0 | 8.0 | 13.77 | 12.60 | | Total capital | 8.0 | 10.0 | 15.14 | 13.66 | | Leverage ratio | 4.0 | 5.0 | 10.37 | 9.48 | [Note 12 – Commitments and Contingencies](index=35&type=section&id=Note%2012%20%E2%80%93%20Commitments%20and%20Contingencies) This note discloses the company's off-balance sheet financial instruments, including commitments to extend credit and letters of credit, and addresses potential liabilities from pending and threatened lawsuits | Off-Balance Sheet Instruments (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | Commitments to extend credit | $4,335,416 | $3,970,991 | | Letters of credit | $55,752 | $57,983 | - The company uses the same credit policies for off-balance sheet instruments as for on-balance sheet instruments, often requiring collateral or other security[139](index=139&type=chunk) - Management does not anticipate that the ultimate aggregate liability from pending and threatened lawsuits will have a material adverse effect on the company's financial position or results of operations[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, offering insights beyond the financial statements. It covers key performance indicators, recent developments, asset quality, liquidity, and capital resources [Overview](index=36&type=section&id=Overview) United Community Banks, Inc. offers a broad range of commercial and consumer banking services and investment advisory solutions across six states, with specialized equipment finance and SBA/USDA lending businesses operating nationwide. As of June 30, 2025, the company reported consolidated total assets of **$28.1 billion** and **3,050** full-time equivalent employees - United Community Banks, Inc. operates **200** banking offices in Georgia, South Carolina, North Carolina, Tennessee, Florida, and Alabama[145](index=145&type=chunk) - The company's equipment finance and SBA/USDA lending businesses operate throughout the United States[145](index=145&type=chunk) | Metric | June 30, 2025 | | :-------------------- | :------------ | | Consolidated total assets | $28.1 billion | | Full-time equivalent employees | 3,050 | [Recent Developments](index=36&type=section&id=Recent%20Developments) Recent developments include the acquisition of ANB on May 1, 2025, which expanded the company's Florida market presence by adding **$447 million** in assets and assuming **$381 million** in liabilities. Additionally, the U.S. enacted the One Big Beautiful Bill Act on July 4, 2025, making the **21%** corporate tax rate permanent - On **May 1, 2025**, United completed the acquisition of ANB, adding **$447 million** of assets and assuming **$381 million** of liabilities, including **$301 million** in loans and **$374 million** in deposits[146](index=146&type=chunk) - The ANB acquisition facilitated United's expansion within the Oakland Park, Florida market[146](index=146&type=chunk) - On **July 4, 2025**, the U.S. enacted the One Big Beautiful Bill Act, which made the **21%** corporate tax rate permanent[147](index=147&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) The company reported increased net income and diluted EPS for both the second quarter and first half of 2025, primarily driven by higher net interest revenue due to lower deposit interest expense. Noninterest income decreased, while noninterest expense remained relatively consistent, with specific impacts from the ANB acquisition and prior year's goodwill write-down | Metric | Q2 2025 | Q2 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Net income (in millions) | $78.7 | $66.6 | 18.2% | | Diluted EPS | $0.63 | $0.54 | 16.7% | | Net interest revenue (in millions) | $226 | $209 | 8.1% | | Net interest margin | 3.50% | 3.37% | +13 bps | | Noninterest income (in millions) | $34.7 | $36.6 | -5.2% | | Noninterest expense (in millions) | $148 | $147 | 0.7% | | Provision for credit losses (in millions) | $11.8 | $12.2 | -3.3% | | Metric | H1 2025 | H1 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Net income (in millions) | $150 | $129 | 16.3% | | Diluted EPS | $1.21 | $1.05 | 15.2% | | Net interest revenue (in millions) | $438 | $408 | 7.4% | | Net interest margin | 3.43% | 3.28% | +15 bps | | Noninterest income (in millions) | $70.4 | $76.1 | -7.5% | | Noninterest expense (in millions) | $289 | $292 | -1.0% | | Provision for credit losses (in millions) | $27.2 | $25.1 | 8.4% | - The increase in net interest revenue was mostly driven by **lower deposit interest expense**, while the decrease in noninterest income was primarily due to **negative fair value adjustments** to mortgage servicing assets and **lower wealth management fees** following the FinTrust sale[149](index=149&type=chunk)[152](index=152&type=chunk) [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) This section highlights that the preparation of financial statements requires management to make significant estimates and assumptions, particularly for the Allowance for Credit Losses (ACL) and fair value measurements. These estimates involve judgment and could materially affect financial results if different assumptions were applied - Critical accounting estimates include accounting for the **Allowance for Credit Losses (ACL)** and **fair value measurements**, both requiring significant management judgment[155](index=155&type=chunk) - Actual results could differ significantly from these estimates, and different assumptions could lead to material changes in the consolidated financial position or results of operations[155](index=155&type=chunk) - Further discussion on critical accounting estimates is available in the MD&A section of the company's 2024 10-K[155](index=155&type=chunk) [Non-GAAP Reconciliation and Explanation](index=37&type=section&id=Non-GAAP%20Reconciliation%20and%20Explanation) This section explains the use of non-GAAP financial measures, such as 'tangible book value per common share' and 'operating performance measures' (excluding merger-related and other non-recurring items). These measures are used to provide supplemental information for evaluating operations and performance, despite their inherent limitations and lack of audit - Non-GAAP financial information includes **'tangible book value per common share,'** **'tangible common equity to tangible assets,'** and operating performance measures (e.g., **'net income – operating,'** **'diluted income per common share – operating'**) which exclude merger-related and other non-recurring items[156](index=156&type=chunk) - Management uses these non-GAAP measures to evaluate operations and performance over time, manage the business, and assess financial results and credit trends, providing a meaningful comparison to prior periods[156](index=156&type=chunk) - Non-GAAP measures have inherent limitations, are not uniformly applied, and are not audited; they should be viewed as supplemental to, not a substitute for, GAAP measures[156](index=156&type=chunk) [Net Interest Revenue](index=40&type=section&id=Net%20Interest%20Revenue) Net interest revenue increased for both the second quarter and first half of 2025 compared to the prior year, driven by an improved net interest-rate spread and net interest margin. This improvement was primarily due to a larger decrease in interest rates paid on deposits relative to the decrease in interest rates earned on loans, influenced by federal funds rate cuts | Metric (FTE) | Q2 2025 | Q2 2024 | Change | | :---------------------- | :------ | :------ | :------- | | Net interest revenue (in millions) | $227 | $210 | +$17M | | Net interest-rate spread | 2.62% | 2.32% | +30 bps | | Net interest margin | 3.50% | 3.37% | +13 bps | | Metric (FTE) | H1 2025 | H1 2024 | Change | | :---------------------- | :------ | :------ | :------- | | Net interest revenue (in millions) | $440 | $410 | +$30M | | Net interest-rate spread | 2.55% | 2.24% | +31 bps | | Net interest margin | 3.43% | 3.28% | +15 bps | - The increase in net interest revenue and margin was primarily due to a larger decrease in interest rates paid on deposits compared to the decrease in interest rates earned on loans, influenced by **100 basis point cuts** in the federal funds rate[150](index=150&type=chunk)[161](index=161&type=chunk) [Noninterest Income](index=43&type=section&id=Noninterest%20Income) Total noninterest income decreased for both the second quarter and first half of 2025, primarily due to negative fair value adjustments to mortgage servicing assets and lower wealth management fees following the FinTrust sale. This was partially offset by increased customer derivative fees and other noninterest income | Noninterest Income (in thousands) | Q2 2025 | Q2 2024 | % Change (YoY) | | :-------------------------------- | :------ | :------ | :------------- | | Total service charges and fees | $10,122 | $10,620 | -4.7% | | Mortgage loan gains and related fees | $5,370 | $6,799 | -21.0% | | Wealth management fees | $4,400 | $6,386 | -31.0% | | Gains on sales of other loans | $1,995 | $1,296 | 54.0% | | Customer derivative fees | $905 | $199 | 354.8% | | Total noninterest income | $34,708 | $36,556 | -5.1% | | Noninterest Income (in thousands) | H1 2025 | H1 2024 | % Change (YoY) | | :-------------------------------- | :------ | :------ | :------------- | | Total service charges and fees | $19,657 | $19,884 | -1.1% | | Mortgage loan gains and related fees | $11,492 | $14,310 | -19.7% | | Wealth management fees | $8,865 | $12,699 | -30.2% | | Gains on sales of other loans | $3,391 | $2,833 | 19.7% | | Customer derivative fees | $2,157 | $438 | 392.5% | | Total noninterest income | $70,364 | $76,143 | -7.6% | - The decrease in mortgage loan gains was primarily due to **negative fair value adjustments** to mortgage servicing assets, partially offset by **higher gains on mortgage sales** and **rate lock volume**[166](index=166&type=chunk) - Wealth management fees decreased due to lower assets under management and advisement following the **FinTrust sale in Q4 2024**[167](index=167&type=chunk) [Provision for Credit Losses](index=44&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses for the second quarter of 2025 was **$11.8 million**, a slight decrease from the prior year, while the six-month provision increased to **$27.2 million**. The 2025 provisions included an initial **$2.49 million** for ANB's non-PCD loans and unfunded commitments | Metric (in millions) | Q2 2025 | Q2 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Provision for credit losses | $11.8 | $12.2 | -3.3% | | Metric (in millions) | H1 2025 | H1 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Provision for credit losses | $27.2 | $25.1 | 8.4% | - The provision for credit losses for the three and six months ended June 30, 2025, included an initial provision of **$2.49 million** for ANB's non-PCD loans and unfunded commitments[170](index=170&type=chunk) [Noninterest Expense](index=44&type=section&id=Noninterest%20Expense) Total noninterest expense remained relatively consistent year-over-year for both the second quarter and first half of 2025. Increases in communications and equipment, outside electronic banking services, and merger-related charges were largely offset by decreases in FDIC assessments (due to a prior year special assessment) and amortization of intangibles | Noninterest Expense (in thousands) | Q2 2025 | Q2 2024 | % Change (YoY) | | :--------------------------------- | :------ | :------ | :------------- | | Salaries and employee benefits | $86,997 | $85,818 | 1.4% | | Communications and equipment | $13,332 | $11,988 | 11.2% | | Outside services - electronic banking | $3,570 | $2,812 | 27.0% | | Amortization of intangibles | $3,292 | $3,794 | -13.2% | | Merger-related and other charges | $4,833 | $2,157 | 124.1% | | Other | $6,900 | $12,184 | -43.3% | | Total noninterest expense | $147,919 | $147,044 | 0.6% | | Noninterest Expense (in thousands) | H1 2025 | H1 2024 | % Change (YoY) | | :--------------------------------- | :------ | :------ | :------------- | | Salaries and employee benefits | $171,264 | $170,803 | 0.3% | | Communications and equipment | $27,031 | $23,908 | 13.1% | | Outside services - electronic banking | $6,333 | $5,730 | 10.5% | | FDIC assessments and other regulatory charges | $9,387 | $12,033 | -22.0% | | Amortization of intangibles | $6,578 | $7,681 | -14.3% | | Merger-related and other charges | $6,130 | $4,244 | 44.4% | | Other | $14,756 | $20,360 | -27.5% | | Total noninterest expense | $289,018 | $292,046 | -1.0% | - The decrease in FDIC assessments for the first six months of 2025 was due to the comparative period of 2024 including a **$1.74 million** FDIC special assessment[173](index=173&type=chunk) - Other noninterest expense decreased significantly in 2025 as the prior year included a **$5.10 million** goodwill write-down related to the sale of FinTrust[176](index=176&type=chunk) [Income Tax Expense](index=45&type=section&id=Income%20Tax%20Expense) Income tax expense increased for both the three and six months ended June 30, 2025, reflecting higher income before taxes. The effective tax rate decreased slightly from **22.5%** in 2024 to **21.7%** in 2025 | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Income before income taxes | $100,502 | $85,977 | 16.9% | | Income tax expense | $21,769 | $19,362 | 12.4% | | Effective tax rate | 21.7% | 22.5% | -0.8 pp | | Metric (in thousands) | H1 2025 | H1 2024 | % Change (YoY) | | :-------------------------- | :------ | :------ | :------------- | | Income before income taxes | $191,661 | $166,812 | 14.9% | | Income tax expense | $41,515 | $37,566 | 10.5% | | Effective tax rate | 21.7% | 22.5% | -0.8 pp | [Balance Sheet Review](index=45&type=section&id=Balance%20Sheet%20Review) Total assets increased to **$28.1 billion** at June 30, 2025, from **$27.7 billion** at December 31, 2024. Total liabilities also rose to **$24.5 billion**, while shareholders' equity grew to **$3.61 billion**, reflecting year-to-date earnings, other comprehensive income, and the ANB acquisition | Metric (in billions) | June 30, 2025 | December 31, 2024 | Change | | :------------------- | :------------ | :---------------- | :----- | | Total assets | $28.1 | $27.7 | +$0.4B | | Total liabilities | $24.5 | $24.3 | +$0.2B | | Shareholders' equity | $3.61 | $3.43 | +$0.18B | - The increase in shareholders' equity was primarily due to year-to-date earnings, other comprehensive income, and the issuance of stock for the ANB acquisition, partially offset by dividends declared[210](index=210&type=chunk) [Loans](index=45&type=section&id=Loans) The loan portfolio, the largest category of interest-earning assets, saw an increase in total commercial loans and home equity loans, while residential mortgage loans slightly decreased. The Allowance for Credit Losses (ACL) for loans as a percentage of total loans remained flat at **1.14%** | Loan Portfolio Composition (in thousands) | June 30, 2025 | % of portfolio | December 31, 2024 | % of portfolio | | :------------------------------------ | :------------ | :------------- | :---------------- | :------------- | | Total commercial | $14,156,507 | 75% | $13,505,724 | 74% | | Residential mortgage | $3,210,430 | 17% | $3,231,479 | 18% | | Home equity | $1,180,455 | 6% | $1,064,874 | 6% | | Total loans (excluding fair value hedge basis adjustment) | $18,912,179 | 100% | $18,168,653 | 100% | | ACL - loans to loans | 1.14% | N/A | 1.14% | N/A | | Income Producing CRE Portfolio (in thousands) | June 30, 2025 | % of category | December 31, 2024 | % of category | | :-------------------------------------------- | :------------ | :------------ | :---------------- | :------------ | | Retail | $865,274 | 19% | $765,987 | 18% | | Office | $823,711 | 18% | $792,449 | 18% | | Multifamily | $590,291 | 13% | $633,296 | 15% | | Warehouse | $544,620 | 12% | $502,586 | 11% | | Hotel | $501,473 | 11% | $467,139 | 11% | | Total Income Producing CRE | $4,548,235 | 100% | $4,360,920 | 100% | [Asset Quality and Risk Elements](index=46&type=section&id=Asset%20Quality%20and%20Risk%20Elements) Asset quality improved with a significant decrease in Nonperforming Assets (NPAs) and nonaccrual loans, primarily due to payoffs and paydowns of nonaccrual loans. The Allowance for Credit Losses (ACL) for loans increased due to loan growth and the ANB acquisition, partially offset by a reduction in Hurricane Helene related allowance | Asset Quality Metrics (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Total nonaccrual loans | $80,452 | $113,579 | $(33,127) | | Total NPAs | $83,959 | $115,635 | $(31,676) | | Nonaccrual loans as % of total loans | 0.43% | 0.62% | -0.19 pp | | NPAs as % of total assets | 0.30% | 0.42% | -0.12 pp | | ACL - loans | $216,500 | $206,998 | +$9,502 | | ACL - loans to nonaccrual loans coverage ratio | 2.69 | 1.82 | +0.87 | - The decrease in NPAs was primarily driven by **$49.6 million** in payoffs and paydowns of nonaccrual loans, including two senior care loans totaling **$14.6 million** and significant paydowns for three larger commercial relationships totaling **$17.8 million**[191](index=191&type=chunk) - The ACL for loans increased due to loan growth and the initial allowance for ANB (**$3.65 million**), partially offset by a reduction in the Hurricane Helene related allowance from **$9.80 million** to **$4.42 million**[186](index=186&type=chunk) [Investment Securities](index=48&type=section&id=Investment%20Securities) The investment securities portfolio decreased in carrying value, with AFS securities comprising **64%** and HTM securities **36%** of the total. HTM debt securities continued to show net unrealized losses, primarily due to interest rate changes, which are also reflected in AOCI for transferred securities | Investment Securities (in thousands) | June 30, 2025 | % of portfolio | December 31, 2024 | % of portfolio | | :----------------------------------- | :------------ | :------------- | :---------------- | :------------- | | AFS | $4,075,323 | 64% | $4,436,291 | 65% | | HTM | $2,306,730 | 36% | $2,368,107 | 35% | | Total investment securities | $6,382,053 | N/A | $6,804,398 | N/A | | Investment securities as % of total assets | 23% | N/A | 25% | N/A | | HTM debt securities fair value | $1,935,748 | N/A | $1,944,126 | N/A | | HTM net unrealized losses (pre-tax) | $371,000 | N/A | $423,992 | N/A | - The company utilizes fair value hedges on a portion of its AFS securities portfolio to mitigate the impact of potential future unrealized losses on tangible common equity[196](index=196&type=chunk) - Additional unrealized losses on HTM debt securities of **$55.5 million** (pre-tax) were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022[197](index=197&type=chunk) [Goodwill and Other Intangible Assets](index=49&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) Goodwill and other intangible assets increased to **$974 million** at June 30, 2025, from **$957 million** at December 31, 2024. This increase was primarily due to the recording of **$18.0 million** in goodwill and **$6.29 million** in core deposit intangible assets from the ANB acquisition | Metric (in millions) | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------- | :------------ | :---------------- | :----- | | Goodwill and other intangibles | $974 | $957 | +$17M | | Goodwill recorded from ANB acquisition | $18.0 | N/A | N/A | | Core deposit intangible from ANB acquisition | $6.29 | N/A | N/A | - During the second quarter of 2025, United recorded $18.0 million in goodwill and $6.29 million in core deposit intangible assets in connection with the ANB acquisition[107](index=107&type=chunk)[109](index=109&type=chunk) - The estimated aggregate amortization expense for finite-lived intangibles is $6.50 million for the remainder of 2025 and $11.50 million for 2026[111](index=111&type=chunk) [Deposits](index=49&type=section&id=Deposits) Customer deposits, the primary source of funds, increased by **$514 million** since December 31, 2024, including **$374 million** from the ANB acquisition. Noninterest-bearing demand deposits remained a significant portion of the total, and a substantial amount of uninsured deposits were collateralized by investment securities | Deposits (in thousands) | June 30, 2025 | % of Total | December 31, 2024 | % of Total | | :---------------------- | :------------ | :--------- | :---------------- | :--------- | | Noninterest-bearing demand | $6,381,975 | 26% | $6,211,182 | 26% | | NOW and interest-bearing demand | $5,986,049 | 25% | $6,141,342 | 26% | | Money market and savings | $7,832,527 | 33% | $7,498,735 | 32% | | Time | $3,606,511 | 15% | $3,441,424 | 15% | | Total customer deposits | $23,807,062 | 99% | $23,292,683 | 99% | | Total deposits | $23,963,012 | N/A | $23,460,975 | N/A | - Customer deposits increased by $514 million since December 31, 2024, with $374 million attributed to the ANB acquisition[199](index=199&type=chunk) - As of June 30, 2025, the company had approximately **$9.64 billion** of uninsured deposits, of which **$2.81 billion** was collateralized by investment securities[199](index=199&type=chunk) [Borrowing Activities](index=50&type=section&id=Borrowing%20Activities) Long-term debt decreased to **$155 million** at June 30, 2025, following the redemption of **$100 million** in senior debentures. Short-term borrowings were eliminated, indicating that liquidity needs are being met by deposits and cash balances, reducing reliance on wholesale funding | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Long-term debt | $155 | $254 | | Short-term borrowings | $0 | $195 | - During the second quarter of 2025, the company redeemed its $100 million 2030 senior debentures[201](index=201&type=chunk) - The decreased need for wholesale funding sources indicates that liquidity needs are being met by deposit and cash balances[201](index=201&type=chunk) [Contractual Obligations and Off-Balance Sheet Arrangements](index=50&type=section&id=Contractual%20Obligations%20and%20Of%20-Balance%20Sheet%20Arrangements) There have been no material changes to the company's contractual obligations and off-balance sheet arrangements since December 31, 2024 - No material changes to contractual obligations and off-balance sheet arrangements have occurred since December 31, 2024[202](index=202&type=chunk) [Interest Rate Sensitivity Management](index=50&type=section&id=Interest%20Rate%20Sensitivity%20Management) The company manages interest rate sensitivity using an asset/liability simulation model to measure potential changes in net interest revenue under various interest rate scenarios. The balance sheet became slightly more asset sensitive at June 30, 2025, due to higher cash balances and adjustments to asset duration - Management uses an asset/liability simulation model to measure the potential change in net interest revenue over a 12-month period using multiple interest rate shock and ramp scenarios[204](index=204&type=chunk) | Interest Sensitivity Position (12-month impact on Net Interest Revenue) | | | :------------------------------------ | :------------- | | **June 30, 2025** | | | 200 bps increase (Shock) | 3.59% | | 100 bps increase (Shock) | 1.97% | | 100 bps decrease (Shock) | (3.02)% | | 200 bps decrease (Shock) | (7.22)% | | **December 31, 2024** | | | 200 bps increase (Shock) | 2.01% | | 100 bps increase (Shock) | 1.19% | | 100 bps decrease (Shock) | (2.27)% | | 200 bps decrease (Shock) | (6.00)% | - The balance sheet became slightly more asset sensitive at June 30, 2025, compared to December 31, 2024, due to more floating interest rate loans, a slight shortening of asset duration, and higher cash balances[206](index=206&type=chunk) [Liquidity Management](index=50&type=section&id=Liquidity%20Management) The company's primary liquidity source is customer deposits, supplemented by wholesale funding. It maintains sufficient liquid funds and collateral to support additional borrowings, and the Holding Company ensures its own liquidity at a level of at least **125%** of forecasted cash obligations - The Bank's main source of liquidity is customer interest-bearing and noninterest-bearing deposit accounts, supplemented by wholesale funding sources like repurchase agreements, Federal funds purchased, FHLB advances, and brokered deposits[207](index=207&type=chunk) | Liquid Funds and Unused Borrowing Capacity (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $574,956 | $519,873 | | Availability of borrowings (FHLB) | $1,921,234 | $1,917,905 | | Availability of borrowings (Federal Reserve - Discount Window) | $2,395,442 | $2,267,139 | | Unpledged securities available as collateral | $3,571,790 | $3,603,885 | - The Holding Company maintains liquidity at a level of at least 125% of the next 12 months of forecasted cash obligations[208](index=208&type=chunk) [Capital Resources and Dividends](index=51&type=section&id=Capital%20Resources%20and%20Dividends) Shareholders' equity increased to **$3.61 billion** at June 30, 2025, driven by earnings, other comprehensive income, and the ANB acquisition. The company and its Bank maintained 'well-capitalized' status, exceeding all regulatory capital requirements | Capital Ratios (June 30, 2025) | Minimum | Well Capitalized | United Community Banks, Inc. (Consolidated) | | :----------------------------- | :------ | :--------------- | :------------------------------------------ | | CET1 capital | 4.5 % | 6.5 % | 13.34 % | | Tier 1 capital | 6.0 | 8.0 | 13.77 % | | Total capital | 8.0 | 10.0 | 15.14 % | | Leverage ratio | 4.0 | 5.0 | 10.37 % | - Shareholders' equity increased by **$181 million** from December 31, 2024, primarily due to year-to-date earnings, other comprehensive income, and stock issuance for the ANB acquisition, partially offset by dividends[210](index=210&type=chunk) - As of June 30, 2025, capital levels remained characterized as **'well-capitalized'** under regulatory requirements[211](index=211&type=chunk) [Effect of Inflation and Changing Prices](index=52&type=section&id=Effect%20of%20Inflation%20and%20Changing%20Prices) The company's asset and liability structure, being primarily monetary, means the effect of inflation depends on its ability to adjust to interest rate changes. Management employs an asset/liability management program and periodically reviews pricing to mitigate inflationary impacts - A bank's asset and liability structure is primarily monetary, with little investment in fixed assets or inventories[215](index=215&type=chunk) - The effect of inflation on financial results depends on the company's ability to react to changes in interest rates[215](index=215&type=chunk) - Management utilizes an asset/liability management program to manage interest rate sensitivity and conducts periodic reviews of banking services and products to adjust pricing[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the company's market risk as of June 30, 2025, compared to what was presented in its 2024 10-K, and refers to the interest rate sensitivity position in MD&A - No material changes in market risk have occurred as of June 30, 2025, compared to the 2024 10-K[216](index=216&type=chunk) - The company's interest rate sensitivity position at June 30, 2025, is detailed in Table 14 of the MD&A section[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the quarter - The company's disclosure controls and procedures were evaluated and concluded to be effective as of June 30, 2025[217](index=217&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[218](index=218&type=chunk) [PART II - Other Information](index=53&type=section&id=PART%20II%20-%20Other%20Information) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details the company's common stock repurchase activities during the second quarter of 2025, showing that **506,600** shares were repurchased at an average price of **$27.52** per share, as part of a publicly announced program | Common Stock Repurchases (Q2 2025) | | | :---------------------------------- | :------------- | | Total Number of Shares Purchased | 506,600 | | Average Price Paid per Share | $27.52 | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $86,058,000 | - The repurchases were made under United's common stock repurchase program, which authorizes up to **$100 million** of common stock and is scheduled to expire by **December 31, 2025**[221](index=221&type=chunk) [Item 5. Other Information.](index=53&type=section&id=Item%205.%20Other%20Information.) This section discloses that Lynn Harton, the President and CEO, entered into a Rule 10b5-1 trading arrangement for the sale of **25,000** shares of common stock between **February 15, 2026**, and **March 16, 2026**. No other director or officer adopted, modified, or terminated such arrangements during the quarter - Lynn Harton, President and CEO, entered into a Rule 10b5-1 trading arrangement to sell **25,000** shares of United common stock[222](index=222&type=chunk) - The sale period for these shares is from **February 15, 2026**, to **March 16, 2026**[222](index=222&type=chunk) - No other director or officer adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[223](index=223&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents, certifications by executive officers, and interactive data files in Inline XBRL format - Exhibits include Restated Articles of Incorporation, Amended and Restated Bylaws, Certifications by the President and CEO (H. Lynn Harton) and EVP and CFO (Jefferson L. Harralson) pursuant to Exchange Act Rule 13a-14(a) and 18 U.S.C. Section 1350[227](index=227&type=chunk) - Interactive data files for the financial statements and notes are provided in Inline XBRL format[227](index=227&type=chunk) ```

Financial Performance - The company reported GAAP diluted earnings per share of $0.63, a 17% year-over-year improvement[11] - Operating diluted earnings per share reached $0.66, reflecting a 14% year-over-year increase[11] - Return on assets (ROA) under GAAP was 1.11%, up 14 bps year-over-year, while operating ROA was 1.16%, up 12 bps year-over-year[11] - Net interest margin (NIM) increased by 13 bps year-over-year to 3.50%[11] - Tangible book value (TBV) per share grew by 10% year-over-year to $21.00[11] Balance Sheet and Capital - Total assets reached $28.1 billion[9] - Total deposits amounted to $24.0 billion[9] - Total loans reached $18.9 billion[9] - The Common Equity Tier 1 (CET1) Risk-Based Capital (RBC) ratio was 13.3%[9] Deposit and Loan Growth - Customer deposits increased by $124 million in 2Q25[18] - Noninterest-bearing DDA grew by $125 million in 2Q25[22] - Total loans reached $18.9 billion, with annualized loan growth of 4.2% excluding ANB[25, 27]

2Q25 Investor Presentation July 23, 2025 © 2025 United Community Bank | ucbi.com Disclosures CAUTIONARY STATEMENT This Investor Presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "pre ...

Financial Performance - Net income for the first quarter of 2025 was $71,413 thousand, compared to $62,631 thousand in Q1 2024, marking a year-over-year growth of 14.2%[14]. - Total revenue for the first quarter of 2025 was $248 million, up from $239 million in the first quarter of 2024, reflecting a growth of 3.8%[131]. - Net interest revenue for the three months ended March 31, 2025, was $212,021 thousand, up from $199,149 thousand in the same period of 2024, representing an increase of 6.4%[14]. - Basic net income per common share increased to $0.58 in Q1 2025 from $0.51 in Q1 2024, a growth of 13.7%[14]. - Net income for Q1 2025 was $71,413,000, an increase of 14% compared to $62,631,000 in Q1 2024[19]. Asset and Deposit Growth - Total assets increased to $27,873,718 thousand as of March 31, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 0.55%[12]. - Total deposits rose to $23,762,405 thousand as of March 31, 2025, from $23,460,975 thousand at the end of 2024, indicating an increase of 1.29%[12]. - Net increase in deposits was $301,392,000 in Q1 2025, significantly higher than the $21,024,000 increase in Q1 2024[19]. Credit Losses and Allowance - The provision for credit losses increased to $15,419 thousand in Q1 2025, compared to $12,899 thousand in Q1 2024, reflecting a rise of 19.5%[14]. - The allowance for credit losses on loans and leases was $211,974 thousand as of March 31, 2025, compared to $206,998 thousand at the end of 2024, an increase of 2.4%[12]. - The total Allowance for Credit Losses (ACL) reached $223.201 million, an increase from $224.119 million at the end of March 2024[75]. Noninterest Income and Expenses - Noninterest income decreased to $35,656 thousand in Q1 2025 from $39,587 thousand in Q1 2024, a decline of 9.8%[14]. - Total noninterest expenses decreased to $141,099 thousand in Q1 2025 from $145,002 thousand in Q1 2024, a reduction of 2.0%[14]. - Noninterest income for Q1 2025 was $35,656 thousand, down 10% from $39,587 thousand in Q1 2024[140]. Loan Portfolio and Performance - The total loan portfolio increased to $18.425 billion as of March 31, 2025, up from $18.176 billion at December 31, 2024, representing a growth of approximately 1.37%[45]. - Nonaccrual loans totaled $91,338 thousand as of March 31, 2025, compared to $113,579 thousand as of December 31, 2024, indicating a decrease of about 19.6%[51]. - The total for consumer loans was $182,535, up from $181,072, indicating a growth of about 0.8%[59]. Capital and Regulatory Compliance - As of March 31, 2025, the company was categorized as well-capitalized under regulatory requirements, exceeding all necessary guidelines[118]. - As of March 31, 2025, United Community Banks, Inc. reported a CET1 capital ratio of 13.29%, well above the minimum requirement of 4.5%[119]. - The total common shareholders' equity increased to $3.50 billion, up by $68.8 million from December 31, 2024, due to year-to-date earnings[186]. Market and Economic Conditions - The baseline economic forecast worsened slightly due to uncertainty related to federal administration policies, impacting the ACL estimates[72]. - The effective tax rate for Q1 2025 was 21.7%, down from 22.5% in Q1 2024, with income tax expense increasing to $19.7 million from $18.2 million[158]. Investment Securities - The total investment securities portfolio was valued at $6.66 billion, a decrease of $143.18 million from $6.80 billion on December 31, 2024[172]. - The fair value of HTM debt securities was $1.95 billion, reflecting net unrealized losses of $386 million primarily due to interest rate changes[173]. Shareholder Actions - United repurchased 505,898 shares of common stock for $13.9 million between April 2025 and May 7, 2025[126]. - The company completed the acquisition of ANB Holdings, Inc. on May 1, 2025, with ANB having total assets of $452 million as of March 31, 2025[124].

Financial Data and Key Metrics Changes - Operating earnings were reported at 59 cents per share, with an operating return on assets of 1.04%, both showing solid improvements from the previous year [5] - Loans grew at an annualized pace of just over 5%, while deposits also grew at an annualized rate of 5% [6] - The net interest margin increased by 10 basis points over the fourth quarter, driven by lower deposit costs [6][19] Business Line Data and Key Metrics Changes - The loan portfolio saw a 7% annualized growth in Commercial and Industrial (CNI) loans, including owner-occupied Commercial Real Estate (CRE), and a 15% annualized growth in the Navitas book [15] - Home Equity Line of Credit (HELOC) loans experienced a 13% annualized growth [15] - Non-interest income on an operating basis decreased by $4.8 million from the previous quarter, but the run rate of fee income remained essentially flat [20] Market Data and Key Metrics Changes - Deposit growth was strong, with $309 million in deposit growth or 5.3% annualized, despite approximately $85 million in seasonal public funds outflow [12] - The cost of total deposits improved by 15 basis points during the quarter [13] - The loan-to-deposit ratio remained low at 78%, indicating balanced loan and deposit growth [16] Company Strategy and Development Direction - The company is focused on organic growth as a priority for capital deployment, with share buybacks being considered more attractive than M&A at current stock prices [51][80] - The acquisition of American National Bank is set to close on May 1st, marking a significant step in the company's growth strategy [24] - The company aims to maintain a low single-digit growth in operating expenses, with expectations of modest growth in the second quarter [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, noting that consumer spending and employment in their markets remain strong [10] - There are no elevated concerns regarding the impact of tariffs at this time, as clients are adjusting quickly to maintain margins [10][34] - The company is cautious about potential risks in the small commercial segment, particularly with the Navitas portfolio [35] Other Important Information - The Common Equity Tier 1 (CET1) ratio increased to 13.3%, indicating a strong capital position [17] - The Total Capital Ratio (TCE) was up 21 basis points, remaining above peers [18] - The allowance for credit losses slightly increased to 1.21% of loans, with a loan loss provision of $15.4 million covering net charge-offs [22] Q&A Session Summary Question: Margin expectations going forward - Management expects margins to increase by 5 to 10 basis points next quarter, driven by lower deposit costs and a shift in the mix between loans and securities [27] Question: Concerns regarding tariffs and borrower behavior - Management noted that impacts are client-specific and that borrowers are reacting quickly to adjust to tariff-related challenges [30][34] Question: Changes in borrower behavior and pipelines - Current pipelines for Q2 are similar to Q1, with no significant negative impacts observed [43] Question: SBA and fee income challenges - The company, as a preferred lender, has not faced significant challenges in getting SBA deals approved, and the first quarter was the largest for SBA in history [45] Question: Operating expenses outlook - Operating expenses are expected to remain in the low single-digit growth range, with some seasonal increases anticipated [47] Question: Capital deployment priorities - Organic growth remains the top priority, with share buybacks being more attractive than M&A at current valuations [51][80] Question: Credit quality and loan loss reserves - The company uses Moody's scenarios for credit loss reserves and balances economic forecasts with portfolio performance [60][66]

Financial Performance - Diluted earnings per share were $0.58 (GAAP) and $0.59 (operating), with a return on assets of 1.02% (GAAP) and 1.01% (operating)[13]. - Earnings per share (EPS) for the quarter were reported at $1.25, a 5% increase year-over-year[84]. - The company achieved a net charge-off (NCO) rate of 0.45%, a decrease from 0.60% in the previous quarter[84]. - 1Q25 net charge-offs were $9.6 million, or 0.21% of loans annualized, with nonperforming assets at 0.51% of total loans, down 13 bps from 4Q24[59]. - Diluted earnings per share for 1Q25 were $0.58, compared to $0.61 in 4Q24[81]. - Return on assets - GAAP for 1Q25 was 1.02%, slightly down from 1.06% in 4Q24[83]. Asset and Loan Growth - Total assets reached $27.9 billion, with total deposits at $23.8 billion and total loans at $18.4 billion[11]. - Customer deposits increased by $309 million, or 5.4% annualized, from 4Q24, with noninterest-bearing deposits growing by $46 million, or 3.0% annualized[23]. - The loan portfolio grew by 5.6% annualized, primarily driven by commercial and industrial loans, equipment finance, and home equity lines of credit[33]. - Approximately $8.3 billion, or 45%, of total loans are variable rate and reprice or mature within one year[44]. - Time deposits maturing in 2Q25 represent $1.3 billion, or 39%, with an average rate of 3.78%[29]. Interest and Revenue - The net interest margin improved by 16 basis points year-over-year to 3.36%, with a 6% year-over-year increase in net interest revenue[13]. - Net interest revenue increased by $1.7 million, or 3.2% annualized, from 4Q24, with a core net interest margin of 3.31%, up 12 bps[44]. - The company reported a year-over-year increase in net interest margin (NIM) by 15 basis points, reaching 3.25%[84]. Operational Efficiency - The efficiency ratio improved to 56.2% (operating) from 56.7% (GAAP), indicating enhanced operational efficiency[15]. - The operating efficiency ratio improved to 56.2%, down 293 basis points year-over-year[54]. - Efficiency ratio - GAAP improved to 56.74% in 1Q25 from 56.05% in 4Q24[83]. - Total expenses for 1Q25 were $141,099 thousand, a decrease from $143,056 thousand in 4Q24[81]. Capital and Equity - The company maintains a strong capital position with a Common Equity Tier 1 ratio of 13.3%[36]. - The tangible book value per share increased to $20.58, reflecting a 10% year-over-year improvement[40]. - 1Q25 regulatory risk-based capital ratios remained strong, with a leverage ratio of 10.15%, up 19 bps from 4Q24[41]. - Tangible common equity to tangible assets increased to 9.18% in 1Q25 from 8.97% in 4Q24[83]. - The tangible common equity (TCE) ratio improved to 9.5%, up from 9.0% last year[84]. Strategic Initiatives - The acquisition of ANB Holdings, Inc. is expected to close on May 1, 2025, adding approximately $440 million in assets and $375 million in deposits[12]. - The company expects the ANB acquisition to close on May 1, 2025, with an anticipated tangible book value decrease of approximately $0.13[41]. - The company plans to expand its mortgage loan office (MLO) network by 25% in the next fiscal year[84]. - New product launches are expected to contribute an additional $200 million in revenue over the next two quarters[84]. - The company is exploring strategic acquisitions in the fintech space to enhance its service offerings[84]. Market and Growth Projections - The company is focused on high-growth Southeast MSAs, with Jacksonville, FL projected to grow by 8.26% from 2025 to 2030[79]. - The projected population growth for Raleigh, NC is 7.36% from 2025 to 2030[79]. - Future guidance indicates a projected revenue growth of 8% for the upcoming fiscal year[84]. Noninterest Income - Noninterest income decreased by $4.8 million from 4Q24, primarily due to lower service charges and mortgage fees[49]. - Noninterest income for 1Q25 was $35,656 thousand, compared to $40,522 thousand in 4Q24[81].