United munity Banks(UCBI) - 2025 Q3 - Quarterly Results

Third Quarter 2025 Earnings Overview 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 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][2] - Tangible book value per share grew by $0.59 from Q2 2025, representing an 11% annualized rate[4] - 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] - Net charge-offs were $7.7 million or 0.16% annualized of average loans, down two basis points from Q2 2025[4] - Nonperforming assets were 0.35% of total assets, a slight increase from 0.30% for Q2 2025[4] - 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] Third Quarter 2025 Financial Highlights 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] - 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] - Noninterest expenses increased primarily driven by performance-based incentives[8] Selected Financial Information This section provides a comprehensive overview of the company's income, performance measures, and asset quality metrics for various periods Income Summary 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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) This section presents the unaudited consolidated balance sheets and statements of income, along with a detailed net interest analysis Consolidated Balance Sheets 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 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 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][19] Company Information and Disclosures This section provides details on the company's conference call, corporate profile, non-GAAP financial measures, and forward-looking statement cautions Conference Call Information 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] - 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] About United Community Banks, Inc. 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] - 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] - The company offers banking, mortgage, and wealth management services, and manages a nationally recognized SBA lending franchise and a national equipment finance subsidiary[21] - 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] Non-GAAP Financial Measures (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] - 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] - Examples of non-GAAP measures include 'operating net income,' 'tangible book value per common share,' and 'operating efficiency ratio'[22] - 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] Caution About Forward-Looking Statements 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] - 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] - These statements are subject to numerous assumptions, risks, and uncertainties, including general competitive, economic, political, regulatory, and market conditions[23][24] - 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]