UCB United Communty Banks Inc

United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the fourth quarter of 2024 of $75.8 million and pre-tax, pre-provision income of $108 million. Diluted earnings per share of $0.61 for the quarter represented an increase of $0.50 from the fourth quarter a year ago and an increase of $0.23 from the third quarter of 2024. As previously reported, the fourth quarter of 2023 included a loss from restructuring our investment securities portfolio and the third quarter of 2024 included the loss from the sale of manufactured housing loans. For the full year of 2024, net income was $252 million and pre-tax, pre-provision income was $374 million, compared with $188 million and $322 million, respectively, for 2023. Diluted earnings per share of $2.04 for 2024 were up $0.50 from $1.54 in 2023.

On an operating basis, United’s diluted earnings per share of $0.63 were up 19% from the year-ago quarter and up 11% from the third quarter of 2024. The primary drivers of the increased earnings per share year-over-year and for the third quarter were higher net interest income, higher noninterest income and a lower provision for credit losses, partly offset by a modest year-over-year increase in noninterest expense. For the full year of 2024, diluted operating earnings per share were $2.30, an increase of $0.19, or 9%, from the $2.11 reported in 2023.

United’s return on assets was 1.06%, or 1.08% on an operating basis. Return on common equity was 8.4% and return on tangible common equity on an operating basis was 12.1%. On a pre-tax, pre-provision basis, operating return on assets was 1.55% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.97%, up four basis points from the third quarter of 2024.

Chairman and CEO Lynn Harton stated, “We are excited to report strong fourth quarter results. Loan growth returned to historical levels with loans increasing $212 million, or 5% annualized. We funded the new loans with customer deposits, which grew $213 million from third quarter. This growth allowed us to increase net interest income while experiencing some minor expected net interest margin compression. Credit quality remained stable with net charge offs dropping to 0.21% of average loans, the lowest level in two years, resulting in a lower provision for credit losses. Expenses were flat with the third quarter and core noninterest income increased modestly. On the strategic front, in December we announced an agreement to acquire American National Bank headquartered in Oakland Park, Florida, which will expand our presence in this fast-growing part of South Florida. I am excited to welcome Ginger Martin, American National Bank’s President and CEO, and her team of accomplished bankers to United.”

Harton continued, “These fourth quarter results reflect the efforts of our exceptional team, which I am very proud to be a part of. We ended 2024 with strong capital, ample liquidity, and momentum as we enter 2025.”

United’s net interest margin decreased seven basis points to 3.26% from the third quarter. The average yield on interest-earning assets was down 22 basis points to 5.33%, while the cost of interest-bearing liabilities decreased 23 basis points, leading to a one basis point increase in the net interest spread. The seven-basis point reduction in net interest margin reflects the impact of funding a portion of our balance sheet with noninterest bearing deposits that are not sensitive to changes in interest rates. Also contributing to the reduction in the net interest margin was a seasonal increase in public funds deposits and the sale of our manufactured housing loans in the third quarter.

Net charge-offs were $9.5 million, or 0.21% of average loans, during the quarter, down 31 basis points from the third quarter of 2024 which included transaction-related losses resulting from the sale of our manufactured housing portfolio. Nonperforming assets were 42 basis points relative to total assets, unchanged from the third quarter.

Harton concluded, “In 2025, we celebrate United’s seventy-fifth anniversary. We are proud of this milestone, and we are grateful for the trust and confidence our customers have placed in us for so many years. We are entering 2025 in a position of strength as we continue to pursue our goal of being a legendary bank to our customers, employees, and shareholders.”

Fourth Quarter 2024 Financial Highlights:

• Net income of $75.8 million and pre-tax, pre-provision income of $108 million
• EPS up $0.50 compared to fourth quarter 2023 on a GAAP basis and up $0.10, or 19%, on an operating basis; compared to third quarter 2024, EPS up $0.23 on a GAAP basis and up $0.06, or 11%, on an operating basis
• Return on assets of 1.06%, or 1.08% on an operating basis
• Pre-tax, pre-provision return on assets of 1.55% on an operating basis
• Return on common equity of 8.4%
• Return on tangible common equity of 12.1% on an operating basis
• Provision for credit losses was $11.4 million; allowance for credit losses coverage remained stable at 1.20% of total loans
• Net charge-offs of $9.5 million, or 21 basis points as a percent of average loans, benefitting from the absence of the manufactured housing portfolio
• Nonperforming assets of 0.42% of total assets, unchanged from September 30, 2024
• Loan production of $1.4 billion led to loan growth of $212 million, up 5% annualized, from third quarter
• Customer deposits were up $213 million from the third quarter, with most of the growth in NOW and money market deposits
• Net interest margin of 3.26% decreased by seven basis points from the third quarter, partly reflecting the sale of our manufactured housing portfolio in the third quarter and changing composition of our earning assets and interest-bearing liabilities
• Mortgage closings of $246 million compared to $204 million a year ago; mortgage rate locks of $285 million compared to $223 million a year ago
• Noninterest income was up $32.4 million on a linked quarter basis mostly due to the $27.2 million loss from the sale of manufactured housing loans in the third quarter. The remaining increase was primarily driven by the mark on our mortgage servicing rights asset.
• Noninterest expenses remained relatively flat compared to the third quarter on both a GAAP basis and operating basis
• Efficiency ratio of 56.1%, or 55.2% on an operating basis
• Maintained robust capital ratios with preliminary Common Equity Tier 1 increasing to 13.2% and opportunistically redeemed $60 million of subordinated debentures, which lowered total risk-based capital ratio by approximately 30 basis points from the third quarter
• Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year

2024 Financial Highlights:

• Net income of $252 million and pre-tax, pre-provision income of $374 million
• EPS up $0.50 compared to 2023 on a GAAP basis and up $0.19, or 9%, on an operating basis
• Return on assets of 0.90%, or 1.02% on an operating basis
• Pre-tax, pre-provision return on assets of 1.49% on an operating basis
• Return on common equity of 7.1%
• Return on tangible common equity of 11.4% on an operating basis

Conference Call

United will hold a conference call on Wednesday, January 22 at 9:00 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10195478/fe2fad701a. Those without internet access or unable to pre-register may dial in by calling 1-844-481-1970. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, ucbi.com.

UNITED COMMUNITY BANKS, INC. Selected Financial Information(in thousands, except per share data)
			2024																2023			Fourth Quarter 2024- 2023 Change			For the Twelve Months Ended December 31,								YTD 2024- 2023 Change
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter								2024				2023
INCOME SUMMARY
Interest revenue		$	344,962			$	349,086			$	346,965			$	336,728			$	338,698						$	1,377,741			$	1,237,107
Interest expense			134,629				139,900				138,265				137,579				135,245							550,373				419,342
Net interest revenue			210,333				209,186				208,700				199,149				203,453			3	%			827,368				817,765			1	%
Provision for credit losses			11,389				14,428				12,235				12,899				14,626			(22	)			50,951				89,430			(43	)
Noninterest income			40,522				8,091				36,556				39,587				(23,090	)						124,756				75,483			65
Total revenue			239,466				202,849				233,021				225,837				165,737			44				901,173				803,818			12
Noninterest expenses			143,056				143,065				147,044				145,002				154,587			(7	)			578,167				571,273			1
Income before income tax expense			96,410				59,784				85,977				80,835				11,150							323,006				232,545
Income tax (benefit) expense			20,606				12,437				19,362				18,204				(2,940	)						70,609				45,001
Net income			75,804				47,347				66,615				62,631				14,090			438				252,397				187,544			35
Non-operating items			2,203				29,385				6,493				2,187				67,450							40,268				88,894
Income tax benefit of non-operating items			(471	)			(6,276	)			(1,462	)			(493	)			(16,714	)						(8,702	)			(21,489	)
Net income - operating (1)		$	77,536			$	70,456			$	71,646			$	64,325			$	64,826			20			$	283,963			$	254,949			11
Pre-tax pre-provision income (5)		$	107,799			$	74,212			$	98,212			$	93,734			$	25,776			318			$	373,957			$	321,975			16
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP		$	0.61			$	0.38			$	0.54			$	0.51			$	0.11			455			$	2.04			$	1.54			32
Diluted net income - operating (1)			0.63				0.57				0.58				0.52				0.53			19				2.30				2.11			9
Common stock cash dividends declared			0.24				0.24				0.23				0.23				0.23			4				0.94				0.92			2
Book value			27.87				27.68				27.18				26.83				26.52			5				27.87				26.52			5
Tangible book value (3)			20.00				19.66				19.13				18.71				18.39			9				20.00				18.39			9
Key performance ratios:
Return on common equity - GAAP (2)(4)			8.40	%			5.20	%			7.53	%			7.14	%			1.44	%						7.07	%			5.34	%
Return on common equity - operating (1)(2)(4)			8.60				7.82				8.12				7.34				7.27							7.97				7.33
Return on tangible common equity - operating (1)(2)(3)(4)			12.12				11.17				11.68				10.68				10.58							11.42				10.63
Return on assets - GAAP (4)			1.06				0.67				0.97				0.90				0.18							0.90				0.68
Return on assets - operating (1)(4)			1.08				1.01				1.04				0.93				0.92							1.02				0.94
Return on assets -pre-tax pre-provision, excluding non-operating items (1)(4)(5)			1.55				1.50				1.54				1.40				1.33							1.49				1.53
Net interest margin (fully taxable equivalent) (4)			3.26				3.33				3.37				3.20				3.19							3.29				3.35
Efficiency ratio - GAAP			56.05				65.51				59.70				60.47				66.33							60.24				60.09
Efficiency ratio - operating (1)			55.18				57.37				57.06				59.15				59.57							57.15				56.17
Equity to total assets			12.38				12.45				12.35				12.06				11.95							12.38				11.95
Tangible common equity to tangible assets (3)			8.97				8.93				8.78				8.49				8.36							8.97				8.36
ASSET QUALITY
Nonperforming assets (“NPAs”)		$	115,635			$	114,960			$	116,722			$	107,230			$	92,877			25			$	115,635			$	92,877			25
Allowance for credit losses - loans			206,998				205,290				213,022				210,934				208,071			(1	)			206,998				208,071			(1	)
Allowance for credit losses - total			217,389				215,517				224,740				224,119				224,128			(3	)			217,389				224,128			(3	)
Net charge-offs (recoveries)			9,517				23,651				11,614				12,908				10,122							57,690				52,243
Allowance for credit losses - loans to loans			1.14	%			1.14	%			1.17	%			1.15	%			1.14	%						1.14	%			1.14	%
Allowance for credit losses - total to loans			1.20				1.20				1.23				1.22				1.22							1.20				1.22
Net charge-offs to average loans (4)			0.21				0.52				0.26				0.28				0.22							0.32				0.30
NPAs to total assets			0.42				0.42				0.43				0.39				0.34							0.42				0.34
AT PERIOD END ($ in millions)
Loans		$	18,176			$	17,964			$	18,211			$	18,375			$	18,319			(1	)		$	18,176			$	18,319			(1	)
Investment securities			6,804				6,425				6,038				5,859				5,822			17				6,804				5,822			17
Total assets			27,720				27,373				27,057				27,365				27,297			2				27,720				27,297			2
Deposits			23,461				23,253				22,982				23,332				23,311			1				23,461				23,311			1
Shareholders’ equity			3,432				3,407				3,343				3,300				3,262			5				3,432				3,262			5
Common shares outstanding (thousands)			119,364				119,283				119,175				119,137				119,010			—				119,364				119,010			—

(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.

UNITED COMMUNITY BANKS, INC. Non-GAAP Performance Measures Reconciliation Selected Financial Information(in thousands, except per share data)
			2024																2023			Twelve Months EndedDecember 31,
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter					2024				2023
Noninterest income reconciliation
Noninterest income (GAAP)		$	40,522			$	8,091			$	36,556			$	39,587			$	(23,090	)		$	124,756			$	75,483
Loss on sale of manufactured housing loans			—				27,209				—				—				—				27,209				—
Gain on lease termination			—				—				—				(2,400	)			—				(2,400	)			—
Bond portfolio restructuring loss			—				—				—				—				51,689				—				51,689
Noninterest income - operating		$	40,522			$	35,300			$	36,556			$	37,187			$	28,599			$	149,565			$	127,172
Noninterest expense reconciliation
Noninterest expenses (GAAP)		$	143,056			$	143,065			$	147,044			$	145,002			$	154,587			$	578,167			$	571,273
Loss on FinTrust (goodwill impairment)			—				—				(5,100	)			—				—				(5,100	)			—
FDIC special assessment			—				—				764				(2,500	)			(9,995	)			(1,736	)			(9,995	)
Merger-related and other charges			(2,203	)			(2,176	)			(2,157	)			(2,087	)			(5,766	)			(8,623	)			(27,210	)
Expenses - operating		$	140,853			$	140,889			$	140,551			$	140,415			$	138,826			$	562,708			$	534,068
Net income to operating income reconciliation
Net income (GAAP)		$	75,804			$	47,347			$	66,615			$	62,631			$	14,090			$	252,397			$	187,544
Loss on sale of manufactured housing loans			—				27,209				—				—				—				27,209				—
Bond portfolio restructuring loss			—				—				—				—				51,689				—				51,689
Gain on lease termination			—				—				—				(2,400	)			—				(2,400	)			—
Loss on FinTrust (goodwill impairment)			—				—				5,100				—				—				5,100				—
FDIC special assessment			—				—				(764	)			2,500				9,995				1,736				9,995
Merger-related and other charges			2,203				2,176				2,157				2,087				5,766				8,623				27,210
Income tax benefit of non-operating items			(471	)			(6,276	)			(1,462	)			(493	)			(16,714	)			(8,702	)			(21,489	)
Net income - operating		$	77,536			$	70,456			$	71,646			$	64,325			$	64,826			$	283,963			$	254,949
Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)		$	75,804			$	47,347			$	66,615			$	62,631			$	14,090			$	252,397			$	187,544
Income tax expense (benefit)			20,606				12,437				19,362				18,204				(2,940	)			70,609				45,001
Provision for credit losses			11,389				14,428				12,235				12,899				14,626				50,951				89,430
Pre-tax pre-provision income		$	107,799			$	74,212			$	98,212			$	93,734			$	25,776			$	373,957			$	321,975
Diluted income per common share reconciliation
Diluted income per common share (GAAP)		$	0.61			$	0.38			$	0.54			$	0.51			$	0.11			$	2.04			$	1.54
Loss on sale of manufactured housing loans			—				0.18				—				—				—				0.18				—
Bond portfolio restructuring loss			—				—				—				—				0.32				—				0.33
Gain on lease termination			—				—				—				(0.02	)			—				(0.02	)			—
Loss on FinTrust (goodwill impairment)			—				—				0.03				—				—				0.03				—
FDIC special assessment			—				—				—				0.02				0.06				0.01				0.06
Merger-related and other charges			0.02				0.01				0.01				0.01				0.04				0.06				0.18
Diluted income per common share - operating		$	0.63			$	0.57			$	0.58			$	0.52			$	0.53			$	2.30			$	2.11
Book value per common share reconciliation
Book value per common share (GAAP)		$	27.87			$	27.68			$	27.18			$	26.83			$	26.52			$	27.87			$	26.52
Effect of goodwill and other intangibles			(7.87	)			(8.02	)			(8.05	)			(8.12	)			(8.13	)			(7.87	)			(8.13	)
Tangible book value per common share		$	20.00			$	19.66			$	19.13			$	18.71			$	18.39			$	20.00			$	18.39
Return on tangible common equity reconciliation
Return on common equity (GAAP)			8.40	%			5.20	%			7.53	%			7.14	%			1.44	%			7.07	%			5.34	%
Loss on sale of manufactured housing loans			—				2.43				—				—				—				0.61				—
Bond portfolio restructuring loss			—				—				—				—				4.47				—				1.15
Gain on lease termination			—				—				—				(0.22	)			—				(0.05	)			—
Loss on FinTrust (goodwill impairment)			—				—				0.46				—				—				0.11				—
FDIC special assessment			—				—				(0.07	)			0.23				0.86				0.04				0.22
Merger-related and other charges			0.20				0.19				0.20				0.19				0.50				0.19				0.62
Return on common equity - operating			8.60				7.82				8.12				7.34				7.27				7.97				7.33
Effect of goodwill and other intangibles			3.52				3.35				3.56				3.34				3.31				3.45				3.30
Return on tangible common equity - operating			12.12	%			11.17	%			11.68	%			10.68	%			10.58	%			11.42	%			10.63	%
Return on assets reconciliation
Return on assets (GAAP)			1.06	%			0.67	%			0.97	%			0.90	%			0.18	%			0.90	%			0.68	%
Loss on sale of manufactured housing loans			—				0.31				—				—				—				0.08				—
Bond portfolio restructuring loss			—				—				—				—				0.57				—				0.15
Gain on lease termination			—				—				—				(0.03	)			—				(0.01	)			—
Loss on FinTrust (goodwill impairment)			—				—				0.06				—				—				0.02				—
FDIC special assessment			—				—				(0.01	)			0.03				0.11				0.01				0.03
Merger-related and other charges			0.02				0.03				0.02				0.03				0.06				0.02				0.08
Return on assets - operating			1.08	%			1.01	%			1.04	%			0.93	%			0.92	%			1.02	%			0.94	%
Return on assets to return on assets- pre-tax pre-provision reconciliation
Return on assets (GAAP)			1.06	%			0.67	%			0.97	%			0.90	%			0.18	%			0.90	%			0.68	%
Income tax expense (benefit)			0.30				0.19				0.29				0.27				(0.04	)			0.26				0.17
Provision for credit losses			0.16				0.21				0.18				0.19				0.21				0.19				0.34
Loss on sale of manufactured housing loans			—				0.40				—				—				—				0.09				—
Bond portfolio restructuring loss			—				—				—				—				0.75				—				0.20
Gain on lease termination			—				—				—				(0.04	)			—				(0.01	)			—
Loss on FinTrust (goodwill impairment)			—				—				0.08				—				—				0.02				—
FDIC special assessment			—				—				(0.01	)			0.04				0.15				0.01				0.04
Merger-related and other charges			0.03				0.03				0.03				0.04				0.08				0.03				0.10
Return on assets - pre-tax pre-provision, excluding non-operating items			1.55	%			1.50	%			1.54	%			1.40	%			1.33	%			1.49	%			1.53	%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)			56.05	%			65.51	%			59.70	%			60.47	%			66.33	%			60.24	%			60.09	%
Loss on sale of manufactured housing loans			—				(7.15	)			—				—				—				(1.63	)			—
Gain on lease termination			—				—				—				0.60				—				0.15				—
Loss on FinTrust (goodwill impairment)			—				—				(2.07	)			—				—				(0.53	)			—
FDIC special assessment			—				—				0.31				(1.05	)			(4.29	)			(0.18	)			(1.05	)
Merger-related and other charges			(0.87	)			(0.99	)			(0.88	)			(0.87	)			(2.47	)			(0.90	)			(2.87	)
Efficiency ratio - operating			55.18	%			57.37	%			57.06	%			59.15	%			59.57	%			57.15	%			56.17	%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)			12.38	%			12.45	%			12.35	%			12.06	%			11.95	%			12.38	%			11.95	%
Effect of goodwill and other intangibles			(3.09	)			(3.20	)			(3.24	)			(3.25	)			(3.27	)			(3.09	)			(3.27	)
Effect of preferred equity			(0.32	)			(0.32	)			(0.33	)			(0.32	)			(0.32	)			(0.32	)			(0.32	)
Tangible common equity to tangible assets			8.97	%			8.93	%			8.78	%			8.49	%			8.36	%			8.97	%			8.36	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End
(in millions)
		2024													2023		Linked Quarter Change				Year over Year Change
	Fourth Quarter			Third Quarter			Second Quarter				First Quarter			Fourth Quarter
LOANS BY CATEGORY
Owner occupied commercial RE	$	3,398		$	3,323		$	3,297			$	3,310		$	3,264		$	75			$	134
Income producing commercial RE		4,361			4,259			4,058				4,206			4,264			102				97
Commercial & industrial		2,428			2,313			2,299				2,405			2,411			115				17
Commercial construction		1,656			1,785			2,014				1,936			1,860			(129	)			(204	)
Equipment financing		1,663			1,603			1,581				1,544			1,541			60				122
Total commercial		13,506			13,283			13,249				13,401			13,340			223				166
Residential mortgage		3,232			3,263			3,266				3,240			3,199			(31	)			33
Home equity lines of credit		1,065			1,015			985				969			959			50				106
Residential construction		178			189			211				257			302			(11	)			(124	)
Manufactured housing		2			2			321				328			336			—				(334	)
Consumer		186			188			183				180			181			(2	)			5
Other		7			24			(4	)			—			2			(17	)			5
Total loans	$	18,176		$	17,964		$	18,211			$	18,375		$	18,319		$	212			$	(143	)
LOANS BY STATE
Georgia	$	4,447		$	4,470		$	4,411			$	4,356		$	4,357		$	(23	)		$	90
South Carolina		2,815			2,782			2,779				2,804			2,780			33				35
North Carolina		2,644			2,586			2,591				2,566			2,492			58				152
Tennessee		1,799			1,848			2,144				2,209			2,244			(49	)			(445	)
Florida		2,527			2,423			2,407				2,443			2,442			104				85
Alabama		996			996			1,021				1,068			1,082			—				(86	)
Commercial Banking Solutions		2,948			2,859			2,858				2,929			2,922			89				26
Total loans	$	18,176		$	17,964		$	18,211			$	18,375		$	18,319		$	212			$	(143	)

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Year-End
(in millions)
		2024			2023			2022			2021			2020
LOANS BY CATEGORY
Owner occupied commercial RE	$	3,398		$	3,264		$	2,735		$	2,322		$	2,090
Income producing commercial RE		4,361			4,264			3,262			2,601			2,541
Commercial & industrial		2,428			2,411			2,252			1,910			2,499
Commercial construction		1,656			1,860			1,598			1,015			967
Equipment financing		1,663			1,541			1,374			1,083			864
Total commercial		13,506			13,340			11,221			8,931			8,961
Residential mortgage		3,232			3,199			2,355			1,638			1,285
Home equity		1,065			959			850			694			697
Residential construction		178			302			443			359			281
Manufactured housing		2			336			317			—			—
Consumer		186			181			149			138			147
Other		7			2			—			—			—
Total loans	$	18,176		$	18,319		$	15,335		$	11,760		$	11,371
LOANS BY STATE
Georgia	$	4,447		$	4,357		$	4,051		$	3,778		$	3,685
South Carolina		2,815			2,780			2,587			2,235			1,947
North Carolina		2,644			2,492			2,186			1,895			1,281
Tennessee		1,799			2,244			2,507			373			415
Florida		2,527			2,442			1,308			1,148			1,435
Alabama		996			1,082			—			—			—
Commercial Banking Solutions		2,948			2,922			2,696			2,331			2,608
Total loans	$	18,176		$	18,319		$	15,335		$	11,760		$	11,371

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Credit Quality
(in thousands)
		2024
		Fourth Quarter			Third Quarter			Second Quarter
NONACCRUAL LOANS
Owner occupied RE		$	11,674		$	7,783		$	4,820
Income producing RE			25,357			31,222			34,285
Commercial & industrial			29,339			28,856			17,335
Commercial construction			7,400			7,356			6,854
Equipment financing			8,925			9,123			8,341
Total commercial			82,695			84,340			71,635
Residential mortgage			24,615			21,851			18,473
Home equity			4,630			4,111			3,779
Residential construction			57			118			163
Manufactured housing			1,444			1,808			20,356
Consumer			138			152			72
Total nonaccrual loans			113,579			112,380			114,478
OREO and repossessed assets			2,056			2,580			2,244
Total NPAs		$	115,635		$	114,960		$	116,722

			2024
		Fourth Quarter							Third Quarter							Second Quarter
(in thousands)		Net Charge-Offs				Net Charge-Offs to Average Loans (1)			Net Charge-Offs				Net Charge-Offs to Average Loans (1)			Net Charge-Offs				Net Charge-Offs to Average Loans (1)
NET CHARGE-OFFS BY CATEGORY
Owner occupied RE		$	(184	)		(0.02	)%		$	(184	)		(0.02	)%		$	163			0.02	%
Income producing RE			(1,001	)		(0.09	)			1,409			0.13				2,968			0.29
Commercial & industrial			4,075			0.69				4,577			0.79				1,281			0.22
Commercial construction			2			—				36			0.01				(48	)		(0.01	)
Equipment financing			5,812			1.43				5,268			1.32				5,502			1.42
Total commercial			8,704			0.26				11,106			0.33				9,866			0.30
Residential mortgage			145			0.02				32			—				(107	)		(0.01	)
Home equity			(33	)		(0.01	)			36			0.01				(27	)		(0.01	)
Residential construction			7			0.02				111			0.22				26			0.04
Manufactured housing			114			23.41				11,556			28.51				1,150			1.43
Consumer			580			1.24				810			1.74				706			1.57
Total		$	9,517			0.21			$	23,651			0.52			$	11,614			0.26
(1) Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

		December 31, 2024				December 31, 2023
ASSETS
Cash and due from banks		$	296,161			$	200,781
Interest-bearing deposits in banks			223,712				803,094
Cash and cash equivalents			519,873				1,003,875
Debt securities available-for-sale			4,436,291				3,331,084
Debt securities held-to-maturity (fair value $1,944,126 and $2,095,620, respectively)			2,368,107				2,490,848
Loans held for sale			57,534				33,008
Loans and leases held for investment			18,175,980				18,318,755
Less allowance for credit losses - loans and leases			(206,998	)			(208,071	)
Loans and leases, net			17,968,982				18,110,684
Premises and equipment, net			394,264				378,421
Bank owned life insurance			346,234				345,371
Accrued interest receivable			85,616				87,782
Net deferred tax asset			96,982				113,214
Derivative financial instruments			46,883				50,352
Goodwill and other intangible assets, net			956,643				990,087
Other assets			442,849				362,525
Total assets		$	27,720,258			$	27,297,251
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	6,211,182			$	6,534,307
NOW and interest-bearing demand			6,141,342				6,155,193
Money market			6,398,144				5,600,587
Savings			1,100,591				1,207,807
Time			3,441,424				3,649,498
Brokered			168,292				163,219
Total deposits			23,460,975				23,310,611
Short-term borrowings			195,000				—
Long-term debt			254,152				324,823
Derivative financial instruments			77,834				84,811
Accrued expenses and other liabilities			300,170				315,481
Total liabilities			24,288,131				24,035,726
Shareholders' equity:
Preferred stock, $1 par value: 10,000,000 shares authorized; 3,662 shares Series I issued and outstanding; $25,000 per share liquidation preference			88,266				88,266
Common stock, $1 par value; 200,000,000 shares authorized; 119,364,110 and 119,010,319 shares issued and outstanding, respectively			119,364				119,010
Common stock issuable; 600,168 and 620,108 shares, respectively			12,999				13,110
Capital surplus			2,710,279				2,699,112
Retained earnings			714,138				581,219
Accumulated other comprehensive loss			(212,919	)			(239,192	)
Total shareholders’ equity			3,432,127				3,261,525
Total liabilities and shareholders’ equity		$	27,720,258			$	27,297,251

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Income (Unaudited)

(in thousands, except per share data)

		Three Months Ended December 31,								Twelve Months Ended December 31,
			2024				2023				2024				2023
Interest revenue:
Loans, including fees		$	280,325			$	281,909			$	1,147,477			$	1,042,605
Investment securities, including tax exempt of $1,701, $1,732, $6,834 and $7,295			57,127				44,025				206,623				169,800
Deposits in banks and short-term investments			7,510				12,764				23,641				24,702
Total interest revenue			344,962				338,698				1,377,741				1,237,107
Interest expense:
Deposits:
NOW and interest-bearing demand			42,012				44,527				175,534				125,336
Money market			53,859				50,967				214,742				156,397
Savings			652				758				2,717				2,866
Time			34,601				35,511				142,526				110,975
Deposits			131,124				131,763				535,519				395,574
Short-term borrowings			44				9				131				3,195
Federal Home Loan Bank advances			—				—				—				5,761
Long-term debt			3,461				3,473				14,723				14,812
Total interest expense			134,629				135,245				550,373				419,342
Net interest revenue			210,333				203,453				827,368				817,765
Provision for credit losses			11,389				14,626				50,951				89,430
Net interest revenue after provision for credit losses			198,944				188,827				776,417				728,335
Noninterest income:
Service charges and fees			10,622				9,621				40,994				38,412
Mortgage loan gains and related fees			9,737				1,956				27,567				19,220
Wealth management fees			4,658				5,965				23,695				23,740
Net gains (losses) from sale of other loans			1,583				2,237				(21,284	)			9,146
Other lending and loan servicing fees			3,346				3,994				14,396				13,973
Securities losses, net			(3,316	)			(51,689	)			(3,316	)			(53,333	)
Other			13,892				4,826				42,704				24,325
Total noninterest income			40,522				(23,090	)			124,756				75,483
Total revenue			239,466				165,737				901,173				803,818
Noninterest expenses:
Salaries and employee benefits			85,707				82,343				340,043				318,464
Occupancy			10,840				11,616				44,306				42,640
Communications and equipment			12,715				11,610				49,249				43,264
FDIC assessments and other regulatory charges			3,942				14,992				20,978				27,449
Professional fees			6,268				7,062				24,732				26,732
Lending and loan servicing expense			2,311				2,176				8,379				9,722
Outside services - electronic banking			3,540				2,931				13,703				11,577
Postage, printing and supplies			2,491				2,162				9,867				9,467
Advertising and public relations			2,145				2,559				8,546				9,473
Amortization of intangibles			3,387				4,055				14,596				15,175
Merger-related and other charges			2,203				5,766				8,623				27,210
Other			7,507				7,315				35,145				30,100
Total noninterest expenses			143,056				154,587				578,167				571,273
Net income before income taxes			96,410				11,150				323,006				232,545
Income tax expense (benefit)			20,606				(2,940	)			70,609				45,001
Net income		$	75,804			$	14,090			$	252,397			$	187,544
Preferred stock dividends, net of discount on repurchases			1,574				1,395				6,293				5,665
Earnings allocated to participating securities			503				77				1,478				1,032
Net income available to common shareholders		$	73,727			$	12,618			$	244,626			$	180,847
Net income per common share:
Basic		$	0.61			$	0.11			$	2.04			$	1.54
Diluted			0.61				0.11				2.04				1.54
Weighted average common shares outstanding:
Basic			119,924				119,612				119,783				117,603
Diluted			120,111				119,713				119,900				117,745

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,

(dollars in thousands, fully taxable equivalent (FTE))

			2024										2023
		Average Balance				Interest			Average Rate			Average Balance				Interest			Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)		$	17,934,730			$	279,938		6.21	%		$	18,167,572			$	281,776		6.15	%
Taxable securities (3)			6,722,655				55,426		3.30				5,772,630				42,293		2.93
Tax-exempt securities (FTE) (1)(3)			359,569				2,276		2.53				367,585				2,326		2.53
Federal funds sold and other interest-earning assets			812,962				8,396		4.11				1,092,939				13,294		4.83
Total interest-earning assets (FTE)			25,829,916				346,036		5.33				25,400,726				339,689		5.31
Noninterest-earning assets:
Allowance for loan losses			(208,788	)									(204,631	)
Cash and due from banks			228,601										210,383
Premises and equipment			398,794										377,765
Other assets (3)			1,606,297										1,516,268
Total assets		$	27,854,820									$	27,300,511
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	6,313,325				42,012		2.65			$	5,961,835				44,527		2.96
Money market			6,474,284				53,859		3.31				5,799,213				50,967		3.49
Savings			1,105,572				652		0.23				1,227,708				758		0.24
Time			3,472,161				34,030		3.90				3,611,790				35,117		3.86
Brokered time deposits			50,406				571		4.51				60,583				394		2.58
Total interest-bearing deposits			17,415,748				131,124		3.00				16,661,129				131,763		3.14
Federal funds purchased and other borrowings			3,859				44		4.54				7,958				9		0.45
Long-term debt			303,523				3,461		4.54				324,801				3,473		4.24
Total borrowed funds			307,382				3,505		4.54				332,759				3,482		4.15
Total interest-bearing liabilities			17,723,130				134,629		3.02				16,993,888				135,245		3.16
Noninterest-bearing liabilities:
Noninterest-bearing deposits			6,275,493										6,690,251
Other liabilities			454,891										410,067
Total liabilities			24,453,514										24,094,206
Shareholders’ equity			3,401,306										3,206,305
Total liabilities and shareholders’ equity		$	27,854,820									$	27,300,511
Net interest revenue (FTE)						$	211,407									$	204,444
Net interest-rate spread (FTE)									2.31	%									2.15	%
Net interest margin (FTE) (4)									3.26	%									3.19	%

(1)  Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.07 million and $991,000, respectively, for the three months ended December 31, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.(2)  Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.(3)  Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $261 million in 2024 and $458 million in 2023 are included in other assets for purposes of this presentation.(4)  Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

Average Consolidated Balance Sheets and Net Interest Analysis

For the Twelve Months Ended December 31,

(dollars in thousands, fully taxable equivalent (FTE))

			2024										2023
		Average Balance				Interest			Average Rate			Average Balance				Interest			Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)		$	18,124,179			$	1,146,440		6.33	%		$	17,576,424			$	1,042,578		5.93	%
Taxable securities (3)			6,172,942				199,789		3.24				5,929,687				162,505		2.74
Tax-exempt securities (FTE) (1)(3)			362,655				9,152		2.52				381,731				9,796		2.57
Federal funds sold and other interest-earning assets			623,426				26,652		4.28				642,499				26,397		4.11
Total interest-earning assets (FTE)			25,283,202				1,382,033		5.47				24,530,341				1,241,276		5.06
Non-interest-earning assets:
Allowance for loan losses			(212,968	)									(191,016	)
Cash and due from banks			215,411										239,574
Premises and equipment			394,127										355,139
Other assets (3)			1,611,405										1,517,940
Total assets		$	27,291,177									$	26,451,978
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand		$	6,014,052				175,534		2.92			$	5,161,071				125,336		2.43
Money market			6,188,579				214,742		3.47				5,462,677				156,397		2.86
Savings			1,146,305				2,717		0.24				1,312,469				2,866		0.22
Time			3,519,461				140,229		3.98				3,106,989				100,973		3.25
Brokered time deposits			50,359				2,297		4.56				224,914				10,002		4.45
Total interest-bearing deposits			16,918,756				535,519		3.17				15,268,120				395,574		2.59
Federal funds purchased and other borrowings			2,468				131		5.31				75,965				3,195		4.21
Federal Home Loan Bank advances			4				—		—				124,425				5,761		4.63
Long-term debt			319,163				14,723		4.61				324,753				14,812		4.56
Total borrowed funds			321,635				14,854		4.62				525,143				23,768		4.53
Total interest-bearing liabilities			17,240,391				550,373		3.19				15,793,263				419,342		2.66
Noninterest-bearing liabilities:
Noninterest-bearing deposits			6,299,019										7,091,034
Other liabilities			409,547										397,337
Total liabilities			23,948,957										23,281,634
Shareholders’ equity			3,342,220										3,170,344
Total liabilities and shareholders’ equity		$	27,291,177									$	26,451,978
Net interest revenue (FTE)						$	831,660									$	821,934
Net interest-rate spread (FTE)									2.27	%									2.40	%
Net interest margin (FTE) (4)									3.29	%									3.35	%

(1)  Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $4.29 million and $4.17 million, respectively, for 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.(2)  Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.(3)  Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $306 million in 2024 and $424 million in 2023 are included in other assets for purposes of this presentation.(4)  Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

About United Community Banks, Inc.United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management, and mortgage services. As of December 31, 2024, United Community Banks, Inc. had $27.7 billion in assets, 199 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power’s award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2024, United was named by American Banker as one of the “Best Banks to Work For” for the eighth consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. Additional information about United can be found at ucbi.com.

Non-GAAP Financial MeasuresThis press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “noninterest income – operating”, “noninterest expense - operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax, pre-provision - operating,” “return on assets - pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

Caution About Forward-Looking Statements This press release 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,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology, and include statements related to the expected benefits of the acquisition of ANB Holdings, Inc. (“ANB”). Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.

Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the ANB acquisition may not be realized or take longer than anticipated to be realized, (2) disruption from the ANB acquisition of customer, supplier, employee or other business partner relationships, (3) the possibility that the costs, fees, expenses and charges related to the ANB acquisition may be greater than anticipated, (4) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to the ANB acquisition, (5) the failure of the ANB acquisition to close or any unexpected delay in closing the ANB acquisition, (6) the risks relating to the integration of ANB’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (7) the risks associated with United’s pursuit of future acquisitions, (8) the risk associated with expansion into new geographic or product markets, (9) the dilution caused by United’s issuance of additional shares of its common stock in the ANB acquisition, and (10) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.

United qualifies all forward-looking statements by these cautionary statements.

For more information:Jefferson HarralsonChief Financial Officer(864) 240-6208Jefferson_Harralson@ucbi.com