UNITED COM(UCBIO) - 2025 Q3 - Quarterly Results

Executive Summary & Third Quarter 2025 Performance 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 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] CEO's Statement 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] - Customer deposits, excluding seasonal public funds outflow, increased by $137 million, or 2.6% annualized[4] - Non-interest bearing deposits, excluding public funds, grew at an annualized rate of 4.7%[4] - Net charge-offs were $7.7 million or 0.16% annualized of average loans, down two basis points from the second quarter[4] - Nonperforming assets were 0.35% of total assets, up slightly from 0.30% for the second quarter[4] Key Financial Highlights 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 This section provides essential corporate information, explanations of non-GAAP measures, and cautionary statements regarding forward-looking information 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. had $28.1 billion in assets as of September 30, 2025[21] - The company operates 199 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee[21] - 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] Non-GAAP Financial Measures Explanation 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] - These measures are intended to provide useful supplemental information for evaluating underlying performance trends[22] - Reconciliations of non-GAAP measures to GAAP are included in the financial statement tables[22] Caution About Forward-Looking Statements 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] - Actual results may differ materially due to numerous assumptions, risks, and uncertainties, including competitive, economic, political, regulatory, and market conditions[23][24] - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[26] Conference Call Details 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] - Participants could pre-register online or dial in via phone[7] - A webcast of the call was accessible through the Investor Relations section of ucbi.com[7]