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 36.8%[19]. - 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 a 93% increase in net income[151]. - The diluted earnings per share for the three months ended September 30, 2025, was $0.70, up from $0.38 in the same period of 2024, reflecting an increase of 84.2%[136]. - The company reported a net charge-off of $12.854 million for the three months ended September 30, 2025, compared to a charge-off of $26.974 million in the same period of the previous year[89]. 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 surged by 435% year-over-year to $43,219 thousand in Q3 2025, compared to $8,091 thousand in Q3 2024[161]. - Total revenue rose by 27% year-over-year to $276,848 thousand in Q3 2025, up from $217,277 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 stood at $24,546,622 thousand as of September 30, 2025, compared to $24,288,131 thousand at December 31, 2024, indicating a growth of 1.1%[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]. - The total carrying value of pledged securities as of September 30, 2025, was $2.50 billion, down from $3.20 billion as of December 31, 2024[37]. Deposits and Cash Management - Total deposits rose to $24,020,618 thousand as of September 30, 2025, an increase of 2.4% from $23,460,975 thousand at December 31, 2024[12]. - The balance of cash and cash equivalents at the end of the period was $613,431,000 for September 30, 2025, down from $740,039,000 at the same date in 2024[19]. - The bank's liquidity management strategy includes maximizing liquid funds, with available cash and cash equivalents at $613.431 million as of September 30, 2025[211]. 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[14]. - The total Allowance for Credit Losses (ACL) for loans was $215.791 million, reflecting a decrease from $228.276 million at the end of the previous quarter[88]. - 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 Goodwill - The company completed the acquisition of ANB on May 1, 2025, acquiring $447 million in assets and assuming $381 million in liabilities[150]. - The company recorded goodwill of $18,029,000 related to the acquisition of ANB, reflecting the intangible value of the business and its reputation[27]. - Goodwill and other intangible assets increased to $971 million, reflecting the acquisition of ANB, which added $18 million in goodwill[201]. 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 preferred stock on September 15, 2025, resulting in a cash payment of $91.5 million[140]. Loan Portfolio and Growth - The total loan portfolio increased to $19.175 billion as of September 30, 2025, up from $18.176 billion at December 31, 2024, representing a growth of approximately 5.5%[56]. - The commercial loan segment totaled $14.347 billion as of September 30, 2025, compared to $13.506 billion at December 31, 2024, reflecting an increase of approximately 6.2%[56]. - Mortgage loans originated increased by 18% to $282.66 million for the three months ended September 30, 2025, compared to $238.66 million in 2024[170]. Market and Economic Conditions - The U.S. enacted the One Big Beautiful Bill Act on July 4, 2025, making the 21% corporate tax rate permanent, which may impact the company's future tax liabilities[149]. - The bank's interest sensitivity position indicates a 3.32% increase in net interest revenue under a 200 basis point shock scenario as of September 30, 2025[209].

[Executive Summary & Third Quarter 2025 Performance](index=1&type=section&id=Executive%20Summary%20%26%20Third%20Quarter%202025%20Performance) United Community Banks, Inc. reported strong third-quarter 2025 earnings, driven by significant loan growth and margin expansion, with GAAP net income of $91.5 million and diluted EPS of $0.70 [Overview of Third Quarter 2025 Results](index=1&type=section&id=Overview%20of%20Third%20Quarter%202025%20Results) The company achieved strong third-quarter 2025 results with GAAP net income of $91.5 million and diluted EPS of $0.70, reflecting substantial year-over-year and linked-quarter growth Third Quarter 2025 Financial Performance | Metric | Q3 2025 (GAAP) | Q3 2025 (Operating) | Change from Q3 2024 (GAAP) | Change from Q3 2024 (Operating) | Change from Q2 2025 (GAAP) | Change from Q2 2025 (Operating) | | :-------------------------------- | :---------------- | :-------------------- | :----------------------------- | :------------------------------- | :--------------------------- | :----------------------------- | | Net Income | $91.5 million | - | - | - | Up $12.8 million | - | | Pre-tax, Pre-provision Income | $126.0 million | - | - | - | Up $13.7 million | - | | Diluted EPS | $0.70 | $0.75 | Up $0.32 | Up 32% | Up $0.07 | Up 14% | | Return on Assets | 1.29% | 1.33% | Up from 0.67% | Up from 1.01% | - | - | | Return on Common Equity | 9.2% | - | - | - | Improved | - | | Return on Tangible Common Equity | - | 13.6% | - | - | Improved | - | | Tangible Common Equity to Tangible Assets | 9.71% | - | - | - | Up 26 bps | - | - Strong **27% year-over-year revenue growth** contributed to the improved financial performance[2](index=2&type=chunk) [CEO's Statement](index=1&type=section&id=CEO's%20Statement) CEO Lynn Harton highlighted solid loan and deposit growth, healthy margin expansion, and improved return metrics as key drivers of the strong third-quarter financial results - Loans grew by **$254 million**, or **5.4% annualized**, from the second quarter[4](index=4&type=chunk) - Customer deposits, excluding seasonal public funds outflow, increased by **$137 million**, or **2.6% annualized**[4](index=4&type=chunk) - Non-interest bearing deposits, excluding public funds, grew at an annualized rate of **4.7%**[4](index=4&type=chunk) - Net charge-offs were **$7.7 million** or **0.16% annualized** of average loans, down two basis points from the second quarter[4](index=4&type=chunk) - Nonperforming assets were **0.35% of total assets**, up slightly from 0.30% for the second quarter[4](index=4&type=chunk) [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) Total revenue increased by 6% to $276.8 million, driven by an improved net interest margin of 3.58% and higher noninterest income, alongside strong loan growth and reduced credit loss provisions Key Financial Highlights | Metric | Q3 2025 | Change from Q2 2025 | | :-------------------------------- | :---------------- | :------------------ | | Total Revenue | $276.8 million | Up $16.6 million (6%) | | Net Interest Margin | 3.58% | Increased 8 bps | | Noninterest Income | - | Up $8.5 million | | Provision for Credit Losses | $7.9 million | Down $3.9 million | | Allowance for Credit Losses Coverage | 1.19% of total loans | Down slightly | | Net Charge-offs | $7.7 million (0.16% annualized) | Improved 2 bps | | Noninterest Expenses (GAAP) | - | Up $2.9 million | | Noninterest Expenses (Operating) | - | Up $4.3 million | | Efficiency Ratio (GAAP) | 54.3% | Improved | | Efficiency Ratio (Operating) | 53.1% | Improved | | Loan Growth | $254 million (5.4% annualized) | - | | Mortgage Closings | $283 million | Up from $239 million (Q3 2024) | | Mortgage Rate Locks | $388 million | Up from $306 million (Q3 2024) | | Customer Deposits (excluding public funds) | Up $137 million | - | | Noninterest-bearing Demand Deposits | Up $73 million | - | | Common Dividend | $0.25 per share | Up 4% YoY | | Common Equity Tier 1 | 13.4% | Maintained strong | | Preferred Stock Redeemed | $88.3 million | All outstanding preferred shares | [Financial Tables and Reconciliations](index=3&type=section&id=Financial%20Tables%20and%20Reconciliations) This section provides comprehensive financial tables and reconciliations of non-GAAP measures to GAAP, offering detailed insights into the company's performance [Selected Financial Information](index=3&type=section&id=Selected%20Financial%20Information) This section presents a consolidated overview of key financial metrics, including income summary, performance ratios, and asset quality indicators for the current and prior periods Selected Financial Information | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | :------- | :------- | | **Income Summary (in thousands):** | | | | | | | | | 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 | | Net income | $91,494 | $78,733 | $71,413 | $75,804 | $47,347 | $241,640 | $176,593 | | **Performance Measures (per common share):** | | | | | | | | | 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 | | **Key Performance Ratios:** | | | | | | | | | Return on assets - GAAP | 1.29% | 1.11% | 1.02% | 1.06% | 0.67% | 1.16% | 0.85% | | Net interest margin (FTE) | 3.58% | 3.50% | 3.36% | 3.26% | 3.33% | 3.48% | 3.30% | | Efficiency ratio - operating | 53.05% | 54.84% | 56.22% | 55.18% | 57.37% | 54.64% | 57.84% | | Tangible common equity to tangible assets | 9.71% | 9.45% | 9.18% | 8.97% | 8.93% | 9.71% | 8.93% | | **Asset Quality:** | | | | | | | | | Nonperforming assets ("NPAs") (in thousands) | $97,916 | $83,959 | $93,290 | $115,635 | $114,960 | $97,916 | $114,960 | | Allowance for credit losses - loans (in thousands) | $215,791 | $216,500 | $211,974 | $206,998 | $205,290 | $215,791 | $205,290 | | Net charge-offs (in thousands) | $7,676 | $8,225 | $9,607 | $9,517 | $23,651 | $25,508 | $48,173 | | NPAs to total assets | 0.35% | 0.30% | 0.33% | 0.42% | 0.42% | 0.35% | 0.42% | | **At Period End ($ in millions):** | | | | | | | | | Loans | $19,175 | $18,921 | $18,425 | $18,176 | $17,964 | $19,175 | $17,964 | | Total assets | $28,143 | $28,086 | $27,874 | $27,720 | $27,373 | $28,143 | $27,373 | | Deposits | $24,021 | $23,963 | $23,762 | $23,461 | $23,253 | $24,021 | $23,253 | | Shareholders' equity | $3,597 | $3,501 | $3,432 | $3,407 | $3,597 | $3,597 | $3,407 | [Non-GAAP Performance Measures Reconciliation](index=4&type=section&id=Non-GAAP%20Performance%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures to their GAAP equivalents, providing a clearer view of underlying operational performance by excluding non-recurring items [Noninterest Income Reconciliation](index=4&type=section&id=Noninterest%20Income%20Reconciliation) This table reconciles GAAP noninterest income to operating noninterest income, adjusting for specific non-recurring items 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) | | Loss on sale of manufactured housing loans | - | - | - | - | $27,209 | - | $27,209 | | 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=Noninterest%20Expense%20Reconciliation) This table reconciles GAAP noninterest expense to operating noninterest expense, adjusting for merger-related and other charges 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 FinTrust, including goodwill impairment | - | - | - | ($5,100) | - | - | ($5,100) | | 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=Net%20Income%20to%20Operating%20Income%20Reconciliation) This table reconciles GAAP net income to operating net income, adjusting for non-operating items and their tax effects 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=Net%20Income%20to%20Pre-Tax%20Pre-Provision%20Income%20Reconciliation) This table reconciles GAAP net income to pre-tax pre-provision income by adding back income tax expense and provision for credit losses 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=Diluted%20Income%20Per%20Common%20Share%20Reconciliation) This table reconciles GAAP diluted income per common share to operating diluted income per common share, adjusting for non-operating items 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 | - | - | - | - | $0.31 | - | $0.10 | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | $0.02 | | 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=Book%20Value%20Per%20Common%20Share%20Reconciliation) This table reconciles GAAP book value per common share to tangible book value per common share 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=Return%20on%20Common%20Equity%20Reconciliation) This table reconciles GAAP return on common equity to operating return on common equity, adjusting for non-operating items 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=Return%20on%20Tangible%20Common%20Equity%20Reconciliation) This table reconciles operating return on common equity to operating return on tangible common equity by adjusting for goodwill and other intangibles 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=Return%20on%20Assets%20Reconciliation) This table reconciles GAAP return on assets to operating return on assets, adjusting for non-operating items 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% | | Loss on sale of FinTrust, including goodwill impairment | - | - | - | - | - | - | 0.02% | | FDIC special assessment | - | - | - | - | - | - | 0.01% | | Merger-related and other charges | 0.02% | 0.03% | 0.01% | 0.02% | 0.01% | 0.06% | 0.04% | | Return on assets - operating | 1.33% | 1.16% | 1.04% | 1.08% | 1.01% | 1.19% | 0.99% | [Return on Assets - Pre-Tax Pre-Provision Reconciliation](index=5&type=section&id=Return%20on%20Assets%20-%20Pre-Tax%20Pre-Provision%20Reconciliation) This table reconciles GAAP return on assets to operating pre-tax pre-provision return on assets, adjusting for taxes, credit losses, and non-operating items 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=Efficiency%20Ratio%20Reconciliation) This table reconciles GAAP efficiency ratio to operating efficiency ratio, adjusting for non-operating items 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=Tangible%20Common%20Equity%20to%20Tangible%20Assets%20Reconciliation) This table reconciles GAAP equity to total assets to tangible common equity to tangible assets, adjusting for goodwill and preferred equity 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=Loan%20Portfolio%20and%20Credit%20Quality) This section details the composition of the loan portfolio and analyzes key credit quality metrics, including nonaccrual loans and net charge-offs [Loan Portfolio Composition](index=6&type=section&id=Loan%20Portfolio%20Composition) The loan portfolio grew by **$254 million** linked-quarter and **$1.211 billion** year-over-year, with notable increases in owner-occupied commercial real estate and equipment financing Loan Portfolio Composition (in millions) | Loan Category | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Linked Quarter Change | Year over Year Change | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | :-------------------- | :-------------------- | | Owner occupied commercial RE | $3,678 | $3,563 | $3,419 | $3,398 | $3,323 | $115 | $355 | | Income producing commercial RE | $4,534 | $4,548 | $4,416 | $4,361 | $4,259 | ($14) | $275 | | Commercial & industrial | $2,593 | $2,516 | $2,506 | $2,428 | $2,313 | $77 | $280 | | Commercial construction | $1,734 | $1,752 | $1,681 | $1,656 | $1,785 | ($18) | ($51) | | Equipment financing | $1,808 | $1,778 | $1,723 | $1,663 | $1,603 | $30 | $205 | | Total commercial | $14,347 | $14,157 | $13,745 | $13,506 | $13,283 | $190 | $1,064 | | Residential mortgage | $3,198 | $3,210 | $3,218 | $3,232 | $3,263 | ($12) | ($65) | | Home equity | $1,252 | $1,180 | $1,099 | $1,065 | $1,015 | $72 | $237 | | Residential construction | $178 | $174 | $171 | $178 | $189 | $4 | ($11) | | Consumer | $192 | $191 | $183 | $186 | $188 | $1 | $4 | | Total loans | $19,175 | $18,921 | $18,425 | $18,176 | $17,964 | $254 | $1,211 | Loans by Market (in millions) | Loans by Market | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Linked Quarter Change | Year over Year Change | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | :-------------------- | :-------------------- | | Georgia | $4,584 | $4,551 | $4,484 | $4,447 | $4,470 | $33 | $114 | | South Carolina | $2,926 | $2,872 | $2,821 | $2,815 | $2,782 | $54 | $144 | | North Carolina | $2,676 | $2,626 | $2,666 | $2,644 | $2,586 | $50 | $90 | | Tennessee | $1,902 | $1,881 | $1,880 | $1,799 | $1,848 | $21 | $54 | | Florida | $3,040 | $2,966 | $2,572 | $2,527 | $2,423 | $74 | $617 | | Alabama | $1,054 | $1,016 | $1,009 | - | - | $38 | $28 | | Commercial Banking Solutions | $2,993 | $3,009 | $2,993 | $2,948 | $2,859 | ($16) | $134 | | Total loans | $19,175 | $18,921 | $18,425 | $18,176 | $17,964 | $254 | $1,211 | [Credit Quality Metrics](index=7&type=section&id=Credit%20Quality%20Metrics) Total nonaccrual loans increased from the prior quarter, primarily in commercial & industrial and residential mortgage, while net charge-offs slightly decreased Nonaccrual Loans (in thousands) | Nonaccrual Loans | 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) | Net Charge-Offs (Recoveries) by Category | Q3 2025 | NCOs to Average Loans (Q3 2025) | Q2 2025 | NCOs to Average Loans (Q2 2025) | Q1 2025 | NCOs to Average Loans (Q1 2025) | | :---------------------------------------------------- | :------ | :------------------------------ | :------ | :------------------------------ | :------ | :------------------------------ | | Owner occupied RE | $2,497 | 0.28% | $470 | 0.05% | $126 | 0.02% | | Income producing RE | ($106) | (0.01%) | $275 | 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 | ($258) | (0.03%) | $313 | 0.04% | ($1) | - | | Home equity | $8 | 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% | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets and statements of income, providing a comprehensive view of its financial position and performance [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$28.14 billion** as of September 30, 2025, driven by growth in loans and leases, alongside an increase in total deposits and full redemption of preferred stock Consolidated Balance Sheets (in thousands) | Asset | September 30, 2025 | December 31, 2024 | | :---------------------------------------------------- | :----------------- | :---------------- | | Cash and cash equivalents | $613,431 | $519,873 | | Debt securities available-for-sale | $3,889,263 | $4,436,291 | | Debt securities held-to-maturity | $2,274,099 | $2,368,107 | | Loans and leases held for investment | $19,174,794 | $18,175,980 | | Less allowance for credit losses - loans and leases | ($215,791) | ($206,998) | | Loans and leases, net | $18,959,003 | $17,968,982 | | Goodwill and other intangible assets, net | $971,071 | $956,643 | | Total assets | $28,143,473 | $27,720,258 | | **Liabilities and Shareholders' Equity (in thousands):** | | | | Noninterest-bearing demand deposits | $6,444,067 | $6,211,182 | | NOW and interest-bearing demand deposits | $5,860,653 | $6,141,342 | | Money market deposits | $6,801,387 | $6,398,144 | | Savings deposits | $1,085,237 | $1,100,591 | | Time deposits | $3,673,718 | $3,441,424 | | Brokered deposits | $155,556 | $168,292 | | Total deposits | $24,020,618 | $23,460,975 | | Short-term borrowings | - | $195,000 | | Long-term debt | $155,251 | $254,152 | | Total liabilities | $24,546,622 | $24,288,131 | | Preferred stock | - | $88,266 | | Common stock | $121,553 | $119,364 | | Total shareholders' equity | $3,596,851 | $3,432,127 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased for both the three and nine months ended September 30, 2025, primarily due to higher net interest revenue and noninterest income Consolidated Statements of Income (in thousands) | Income Statement Item | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 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 | | Net income available to common shareholders | $86,139 | $45,502 | $232,290 | $170,886 | | Diluted net income per common share | $0.70 | $0.38 | $1.91 | $1.43 | [Net Interest Analysis](index=10&type=section&id=Net%20Interest%20Analysis) This section provides a detailed analysis of net interest revenue, interest-earning assets, and interest-bearing liabilities for the reported periods [Three Months Ended September 30, 2025 and 2024](index=10&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025%20and%202024) Net interest revenue (FTE) increased to **$234.66 million** in Q3 2025, with net interest margin improving to **3.58%** due to lower average rates on interest-bearing liabilities Net Interest Analysis (in thousands, FTE) | Item | Q3 2025 Average Balance (in thousands) | Q3 2025 Interest (in thousands) | Q3 2025 Average Rate | Q3 2024 Average Balance (in thousands) | Q3 2024 Interest (in thousands) | Q3 2024 Average Rate | | :----------------------------------- | :---------------------- | :--------------- | :------------------- | :---------------------- | :--------------- | :------------------- | | **Interest-earning assets:** | | | | | | | | Loans, net of unearned income | $19,010,663 | $297,725 | 6.21% | $18,051,741 | $291,164 | 6.42% | | Taxable securities | $6,217,693 | $51,522 | 3.31% | $6,182,164 | $51,284 | 3.32% | | Tax-exempt securities | $351,528 | $2,249 | 2.56% | $361,359 | $2,292 | 2.54% | | Total interest-earning assets | $25,993,562 | $354,885 | 5.42% | $25,101,056 | $350,180 | 5.55% | | **Interest-bearing liabilities:** | | | | | | | | Total interest-bearing deposits | $17,548,101 | $118,475 | 2.68% | $16,783,418 | $136,149 | 3.23% | | Total borrowed funds | $157,481 | $1,746 | 4.40% | $325,454 | $3,751 | 4.59% | | Total interest-bearing liabilities | $17,705,582 | $120,221 | 2.69% | $17,108,872 | $139,900 | 3.25% | | Net interest revenue (FTE) | - | $234,664 | - | - | $210,280 | - | | Net interest-rate spread (FTE) | - | - | 2.73% | - | - | 2.30% | | Net interest margin (FTE) | - | - | 3.58% | - | - | 3.33% | [Nine Months Ended September 30, 2025 and 2024](index=11&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025%20and%202024) Net interest revenue (FTE) for the nine months ended September 30, 2025, rose to **$674.19 million**, with net interest margin improving to **3.48%** due to reduced average rates on interest-bearing liabilities Net Interest Analysis (in thousands, FTE) | Item | YTD 2025 Average Balance (in thousands) | YTD 2025 Interest (in thousands) | YTD 2025 Average Rate | YTD 2024 Average Balance (in thousands) | YTD 2024 Interest (in thousands) | YTD 2024 Average Rate | | :----------------------------------- | :----------------------- | :---------------- | :-------------------- | :----------------------- | :---------------- | :-------------------- | | **Interest-earning assets:** | | | | | | | | Loans, net of unearned income | $18,632,384 | $859,678 | 6.17% | $18,187,790 | $866,502 | 6.36% | | Taxable securities | $6,480,641 | $162,885 | 3.35% | $5,988,368 | $144,363 | 3.21% | | Tax-exempt securities | $354,115 | $6,730 | 2.53% | $363,692 | $6,876 | 2.52% | | Total interest-earning assets | $25,889,263 | $1,039,581 | 5.37% | $25,099,636 | $1,035,997 | 5.51% | | **Interest-bearing liabilities:** | | | | | | | | Total interest-bearing deposits | $17,445,645 | $356,545 | 2.73% | $16,751,883 | $404,395 | 3.22% | | Total borrowed funds | $258,129 | $8,846 | 4.58% | $326,420 | $11,349 | 4.64% | | Total interest-bearing liabilities | $17,703,774 | $365,391 | 2.76% | $17,078,303 | $415,744 | 3.25% | | Net interest revenue (FTE) | - | $674,190 | - | - | $620,253 | - | | Net interest-rate spread (FTE) | - | - | 2.61% | - | - | 2.26% | | Net interest margin (FTE) | - | - | 3.48% | - | - | 3.30% | [Corporate Information and Disclosures](index=12&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides essential corporate information, explanations of non-GAAP measures, and cautionary statements regarding forward-looking information [About United Community Banks, Inc.](index=12&type=section&id=About%20United%20Community%20Banks%2C%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. had **$28.1 billion in assets** as of September 30, 2025[21](index=21&type=chunk) - The company operates **199 offices** across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee[21](index=21&type=chunk) - United Community is an **11-time winner** of J.D. Power's award for highest customer satisfaction among consumer banks 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=Non-GAAP%20Financial%20Measures%20Explanation) This section explains the use of non-GAAP financial measures, which exclude non-recurring items to provide supplemental information on underlying performance trends - Non-GAAP measures exclude merger-related and other charges not considered part of recurring operations[22](index=22&type=chunk) - These measures are intended to provide useful supplemental information for evaluating underlying performance trends[22](index=22&type=chunk) - Reconciliations of non-GAAP measures to GAAP are included in the financial statement tables[22](index=22&type=chunk) [Caution About Forward-Looking Statements](index=12&type=section&id=Caution%20About%20Forward-Looking%20Statements) Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to update them - Forward-looking statements are not historical facts and represent management's beliefs about future performance[23](index=23&type=chunk) - Actual results may differ materially due to numerous assumptions, risks, and uncertainties, including competitive, economic, political, regulatory, and market conditions[23](index=23&type=chunk)[24](index=24&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[26](index=26&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) A conference call was held on Wednesday, October 22, at 9:00 a.m. ET to discuss third-quarter earnings, with webcast access available on the company's investor relations website - A conference call was held on Wednesday, October 22, at **9:00 a.m. ET** to discuss earnings[7](index=7&type=chunk) - Participants could pre-register online or dial in via phone[7](index=7&type=chunk) - A webcast of the call was accessible through the Investor Relations section of ucbi.com[7](index=7&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________ to ___________ Commission file number 001-35095 UNITED COMMUNITY BANKS, INC. (Exact name of registrant as specified in its charter) Georgia 58-1807304 (State ...

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 ...

PART I This section presents the unaudited consolidated financial statements and management's analysis for Q1 2025 [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents United Community Banks' unaudited consolidated financial statements for Q1 2025, including balance sheets, income, equity, cash flows, and related notes [Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) This chapter details the company's financial position, including assets, liabilities, and shareholders' equity at quarter-end **Consolidated Balance Sheet Highlights (in thousands):** | Item | March 31, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Total assets | $27,873,718 | $27,720,258 | $153,460 | 0.55% | | Total liabilities | $24,372,822 | $24,288,131 | $84,691 | 0.35% | | Total shareholders' equity | $3,500,896 | $3,432,127 | $68,769 | 2.00% | | Loans and leases, net | $18,213,391 | $17,968,982 | $244,409 | 1.36% | | Total deposits | $23,762,405 | $23,460,975 | $301,430 | 1.28% | [Consolidated Statements of Income (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) This chapter presents the company's revenues, expenses, and net income for the three months ended March 31 **Consolidated Statements of Income Highlights (Three Months Ended March 31, in thousands):** | Item | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net interest revenue | $212,021 | $199,149 | $12,872 | 6.46% | | Total noninterest income | $35,656 | $39,587 | $(3,931) | -9.93% | | Total revenue | $247,677 | $238,736 | $8,941 | 3.74% | | Provision for credit losses | $15,419 | $12,899 | $2,520 | 19.54% | | Total noninterest expenses | $141,099 | $145,002 | $(3,903) | -2.69% | | Net income | $71,413 | $62,631 | $8,782 | 14.02% | | Diluted EPS | $0.58 | $0.51 | $0.07 | 13.73% | [Consolidated Statements of Comprehensive Income (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This chapter outlines the company's comprehensive income, including net income and other comprehensive income, for the quarter **Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, in thousands):** | Item | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net income | $71,413 | $62,631 | $8,782 | 14.02% | | Total other comprehensive income | $26,360 | $2,557 | $23,803 | 930.93% | | Comprehensive income | $97,773 | $65,188 | $32,585 | 50.00% | - The significant increase in total other comprehensive income in 2025 was primarily driven by unrealized holding gains on available-for-sale securities of **$26.45 million**, compared to **$0.15 million** in 2024[15](index=15&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(Unaudited)) This chapter details changes in shareholders' equity, including net income, other comprehensive income, and dividends **Shareholders' Equity Changes (Three Months Ended March 31, in thousands):** | Item | March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :------------- | :---------------- | | Total shareholders' equity (End of Period) | $3,500,896 | $3,432,127 | $3,300,110 | $3,261,525 | | Net income | $71,413 | N/A | $62,631 | N/A | | Other comprehensive income | $26,360 | N/A | $2,557 | N/A | | Common stock dividends | $(29,007) | N/A | $(27,665) | N/A | | Accumulated other comprehensive loss | $(186,559) | $(212,919) | $(236,635) | $(239,192) | - Shareholders' equity increased by **$68.77 million** from December 31, 2024, primarily due to net income and other comprehensive income, partially offset by common and preferred stock dividends[17](index=17&type=chunk)[186](index=186&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This chapter presents the company's cash flows from operating, investing, and financing activities for the quarter **Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, in thousands):** | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $98,632 | $88,809 | $9,823 | | Net cash used in investing activities | $(56,579) | $(122,513) | $65,934 | | Net cash provided by (used in) financing activities | $74,786 | $(8,238) | $83,024 | | Net change in cash and cash equivalents | $116,839 | $(41,942) | $158,781 | | Cash and cash equivalents, end of period | $636,712 | $961,933 | $(325,221) | - Net cash provided by financing activities significantly improved from a net use in 2024 to a net provision in 2025, driven by a net increase in deposits of **$301.39 million** and a decrease in short-term borrowings[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This chapter provides detailed explanations of accounting policies, significant estimates, and specific financial statement line items [Note 1 – Basis of Presentation](index=11&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) This note describes the basis of preparation for the financial statements, adhering to GAAP and regulatory guidelines - United's financial statements conform to GAAP and banking regulatory guidelines, with all material intercompany balances and transactions eliminated. Interim statements are unaudited and reflect normal, recurring adjustments[21](index=21&type=chunk)[22](index=22&type=chunk) [Note 2 – Investment Securities](index=11&type=section&id=Note%202%20%E2%80%93%20Investment%20Securities) This note details the composition and fair value of the company's investment securities, including HTM and AFS portfolios **HTM Debt Securities (in thousands):** | Item | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Amortized Cost | $2,338,571 | $2,368,107 | | Fair Value | $1,952,235 | $1,944,126 | | Gross Unrealized Losses | $386,351 | $423,992 | **AFS Debt Securities (in thousands):** | Item | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Amortized Cost | $4,507,626 | $4,664,300 | | Fair Value | $4,322,644 | $4,436,291 | | Gross Unrealized Losses | $194,386 | $231,896 | - Unrealized losses on both HTM and AFS debt securities decreased from December 31, 2024, primarily due to changes in interest rates. The company does not intend to sell these securities prior to recovery of their amortized cost basis[24](index=24&type=chunk)[27](index=27&type=chunk)[32](index=32&type=chunk) [Note 3 – Loans and Leases and Allowance for Credit Losses](index=15&type=section&id=Note%203%20%

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]. - The company achieved a 7.9% return on common equity (GAAP) and an 11.2% return on tangible common equity (operating)[15]. - Earnings per share (EPS) for the quarter were reported at $1.25, a 5% increase year-over-year[84]. - Return on tangible common equity for 1Q25 was 11.21%, down from 12.12% in 4Q24[83]. Assets and Deposits - 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, while noninterest-bearing deposits grew by $46 million, or 3.0% annualized[23]. - The tangible book value per share increased to $20.58, reflecting a year-over-year improvement of 10%[13]. - The book value per share increased to $28.42 in 1Q25 from $27.87 in 4Q24[81]. Loans and Interest - 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 net interest margin improved by 16 basis points year-over-year, reaching 3.36%[13]. - Approximately $8.3 billion, or 45%, of total loans are variable rate and reprice or mature within one year[44]. - Rate locks for mortgage activity increased to $330 million in 1Q25, up from $285 million in 4Q24, driven by lower mortgage rates[73]. Operational Efficiency - Operating efficiency ratio improved by 293 basis points year-over-year, indicating enhanced operational performance[13]. - The efficiency ratio improved to 56.2%, down 293 basis points year-over-year, indicating better operational efficiency[54]. - The efficiency ratio for 1Q25 was 56.22%, slightly improved from 56.05% in 4Q24[83]. Credit Quality - 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]. - The allowance for credit losses increased to $223.2 million, with an allowance coverage of 1.21%[62]. - The allowance for credit losses (ACL) was adjusted to $500 million, representing a 20% increase due to anticipated economic conditions[84]. - The company achieved a net charge-off (NCO) rate of 0.45%, a decrease from 0.55% in the previous quarter[84]. Strategic Initiatives - The acquisition of ANB Holdings, Inc. is expected to close on May 1, 2025, with 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 is focused on high-growth Southeast MSAs, with projected population growth rates exceeding 8% in areas like Jacksonville, FL[79]. - The company is expanding its footprint in high-growth markets, particularly in the Southeast, to capitalize on demographic trends[79]. - The company plans to expand its mortgage loan office (MLO) network by 25% in the next fiscal year[84]. - The company is exploring strategic acquisitions in the fintech space to enhance its service offerings[84]. Revenue and Expenses - 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]. - Total expenses for 1Q25 were $141,099 thousand, a decrease from $143,056 thousand in 4Q24[81]. - New product launches are expected to contribute an additional $200 million in revenue over the next two quarters[84]. Capital Ratios - 1Q25 regulatory risk-based capital ratios remained strong, with a leverage ratio of 10.15%, up 19 bps from 4Q24[41]. - The tangible common equity (TCE) ratio improved to 9.5%, up from 9.2% last year[84]. Future Guidance - Future guidance indicates a projected revenue growth of 8% for the upcoming fiscal year[84].