United Community Banks, Inc. Reports First Quarter Earnings

Written by Customer Service on April 22, 2025. Posted in Earnings Releases And Operating Results.

Growth, Margin Expansion, and Disciplined Expense Control Drive Results

GREENVILLE, S.C., April 22, 2025 (GLOBE NEWSWIRE) — United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the first quarter of 2025 of $71.4 million and pre-tax, pre-provision income of $106.6 million. Diluted earnings per share of $0.58 for the quarter represented an increase of $0.07 from the first quarter a year ago and a decrease of $0.03 from the fourth quarter of 2024.

On an operating basis, United’s diluted earnings per share of $0.59 were up 13% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and lower noninterest expenses, partly offset by lower noninterest income and a higher provision for credit losses.

United’s return on assets was 1.02%, or 1.04% on an operating basis. Return on common equity was 7.9%, and return on tangible common equity on an operating basis was 11.2%. 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 9.18%, up 21 basis points from the fourth quarter of 2024.

Chairman and CEO Lynn Harton stated, “The first quarter was a strong start to the year. Our teams delivered solid loan and deposit growth in what has typically been a seasonally weak quarter. Loans grew by $249 million, or 5.6% annualized, and customer deposits increased $309 million, or 5.4% annualized. Our net interest margin expanded by 10 basis points, helping us to grow net interest income by $1.7 million from the fourth quarter, despite two fewer accruing days. Credit quality remained stable, with first quarter net charge-offs holding steady at 0.21% of average loans. Our provision for credit losses increased by $4.0 million from the fourth quarter, covering first quarter net charge-offs as well as loan growth, slightly increasing our allowance for credit losses to 1.21% of loans, up from 1.20% on December 31, 2024. Expenses improved on an absolute basis from both the fourth and first quarters of 2024, reflecting our ongoing efforts to control costs.”

Harton continued, “We are particularly excited that our bankers were recognized once again by J.D. Power as #1 in Customer Satisfaction in the Southeast, along with #1 in Trust and #1 in People. This year marks our 75ᵗʰ anniversary, and we’re off to a strong start. I’m proud to make this milestone meaningful for our customers, employees, and shareholders. We’re also excited to continue growing our presence in Florida with the recent announcement of our planned acquisition of American National Bank, headquartered in Oakland Park. This expansion will strengthen our footprint in the fast-growing South Florida market. Our teams have been collaborating closely for several months, and we expect to close the transaction on May 1.”

United’s net interest margin increased 10 basis points to 3.36% from the fourth quarter. The average yield on interest-earning assets was down four basis points to 5.29%, while the cost of interest-bearing liabilities decreased 19 basis points, leading to a 15-basis-point increase in the net interest spread. The 10-basis-point increase in net interest margin reflects progress in lowering the cost of funds through reduction in deposit rates and redemption of debt instruments, and to a lesser extent, the seasonal outflow of higher-priced public funds deposits.

Net charge-offs were $9.6 million, or 0.21% of average loans, during the quarter, equal to the fourth quarter of 2024. Nonperforming assets were 33 basis points relative to total assets, improved from 42 basis points for the fourth quarter.

First Quarter 2025 Financial Highlights:

EPS up $0.07 compared to first quarter 2024 on a GAAP basis and up $0.07, or 13%, on an operating basis; EPS down $0.03 compared to the fourth quarter on a GAAP basis and down $0.04, or 6%, on an operating basis
Total revenue improved $8.9 million, or 3.7%, year-over-year
Net interest margin of 3.36% increased by 10 basis points from the fourth quarter, reflecting a lower cost of funds
Loan production of $2.0 billion led to loan growth of $249 million, up 5.6% annualized, from the fourth quarter
Customer deposits were up $309 million from the fourth quarter, with most of the growth in money market deposits
Noninterest income was down $4.9 million on a linked quarter basis mostly due to the absence of unusual fourth quarter gains in the form of a mortgage servicing right write-up and other unusual gains
Mortgage closings of $187 million compared to $171 million a year ago; mortgage rate locks of $330 million compared to $260 million a year ago
Noninterest expenses improved $2.0 million compared to the fourth quarter on a GAAP basis and down $1.1 million on an operating basis
Efficiency ratio of 56.7%, or 56.2% on an operating basis
Net income of $71.4 million and pre-tax, pre-provision income of $106.6 million
Return on assets of 1.02%, or 1.04% on an operating basis
Pre-tax, pre-provision return on assets of 1.55% on an operating basis
Return on common equity of 7.9%
Return on tangible common equity of 11.2% on an operating basis
Provision for credit losses was $15.4 million; allowance for credit losses coverage up slightly to 1.21% of total loans
Net charge-offs of $9.6 million, or 21 basis points as a percent of average loans
Nonperforming assets improved $22 million from December 31, 2024, to 0.33% of total assets
Maintained robust capital ratios with preliminary Common Equity Tier 1 increasing to 13.3%
Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year

Conference Call
United will hold a conference call on Tuesday, April 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/10198403/fed7e1f137. Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. 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)

		2025			2024											First Quarter 2025–2024 Change
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter			First Quarter 2025–2024 Change
INCOME SUMMARY
Interest revenue	$	335,357		$	344,962		$	349,086		$	346,965		$	336,728
Interest expense		123,336			134,629			139,900			138,265			137,579
Net interest revenue		212,021			210,333			209,186			208,700			199,149		6	%
Noninterest income		35,656			40,522			8,091			36,556			39,587		(10	)
Total revenue		247,677			250,855			217,277			245,256			238,736		4
Provision for credit losses		15,419			11,389			14,428			12,235			12,899
Noninterest expenses		141,099			143,056			143,065			147,044			145,002		(3	)
Income before income tax expense		91,159			96,410			59,784			85,977			80,835		13
Income tax expense		19,746			20,606			12,437			19,362			18,204		8
Net income		71,413			75,804			47,347			66,615			62,631		14
Non-operating items		1,297			2,203			29,385			6,493			2,187
Income tax benefit of non-operating items		(281	)		(471	)		(6,276	)		(1,462	)		(493	)
Net income – operating ⁽¹⁾	$	72,429		$	77,536		$	70,456		$	71,646		$	64,325		13
Pre-tax pre-provision income ⁽⁵⁾	$	106,578		$	107,799		$	74,212		$	98,212		$	93,734		14
PERFORMANCE MEASURES
Per common share:
Diluted net income – GAAP	$	0.58		$	0.61		$	0.38		$	0.54		$	0.51		14
Diluted net income – operating ⁽¹⁾		0.59			0.63			0.57			0.58			0.52		13
Cash dividends declared		0.24			0.24			0.24			0.23			0.23		4
Book value		28.42			27.87			27.68			27.18			26.83		6
Tangible book value ⁽³⁾		20.58			20.00			19.66			19.13			18.71		10
Key performance ratios:
Return on common equity – GAAP ⁽²⁾⁽⁴⁾		7.89	%		8.40	%		5.20	%		7.53	%		7.14	%
Return on common equity – operating ^(1)(2)(4)		8.01			8.60			7.82			8.12			7.34
Return on tangible common equity – operating ^(1)(2)(3)(4)		11.21			12.12			11.17			11.68			10.68
Return on assets – GAAP ⁽⁴⁾		1.02			1.06			0.67			0.97			0.90
Return on assets – operating ⁽¹⁾⁽⁴⁾		1.04			1.08			1.01			1.04			0.93
Return on assets – pre-tax pre-provision, excluding non-operating items ^(1)(4)(5)		1.55			1.55			1.50			1.54			1.40
Net interest margin (fully taxable equivalent) ⁽⁴⁾		3.36			3.26			3.33			3.37			3.20
Efficiency ratio – GAAP		56.74			56.05			65.51			59.70			60.47
Efficiency ratio – operating ⁽¹⁾		56.22			55.18			57.37			57.06			59.15
Equity to total assets		12.56			12.38			12.45			12.35			12.06
Tangible common equity to tangible assets ⁽³⁾		9.18			8.97			8.93			8.78			8.49
ASSET QUALITY
Nonperforming assets (“NPAs”)	$	93,290		$	115,635		$	114,960		$	116,722		$	107,230		(13	)
Allowance for credit losses – loans		211,974			206,998			205,290			213,022			210,934		—
Allowance for credit losses – total		223,201			217,389			215,517			224,740			224,119		—
Net charge-offs		9,607			9,517			23,651			11,614			12,908
Allowance for credit losses – loans to loans		1.15	%		1.14	%		1.14	%		1.17	%		1.15	%
Allowance for credit losses – total to loans		1.21			1.20			1.20			1.23			1.22
Net charge-offs to average loans ⁽⁴⁾		0.21			0.21			0.52			0.26			0.28
NPAs to total assets		0.33			0.42			0.42			0.43			0.39
AT PERIOD END ($ in millions)
Loans	$	18,425		$	18,176		$	17,964		$	18,211		$	18,375		—
Investment securities		6,661			6,804			6,425			6,038			5,859		14
Total assets		27,874			27,720			27,373			27,057			27,365		2
Deposits		23,762			23,461			23,253			22,982			23,332		2
Shareholders’ equity		3,501			3,432			3,407			3,343			3,300		6
Common shares outstanding (thousands)		119,514			119,364			119,283			119,175			119,137		—

^{(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
(in thousands, except per share data)

		2025			2024
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter

Noninterest income reconciliation
Noninterest income (GAAP)	$	35,656		$	40,522		$	8,091		$	36,556		$	39,587
Loss on sale of manufactured housing loans		—			—			27,209			—			—
Gain on lease termination		—			—			—			—			(2,400	)
Noninterest income – operating	$	35,656		$	40,522		$	35,300		$	36,556		$	37,187

Noninterest expense reconciliation
Noninterest expenses (GAAP)	$	141,099		$	143,056		$	143,065		$	147,044		$	145,002
Loss on FinTrust (goodwill impairment)		—			—			—			(5,100	)		—
FDIC special assessment		—			—			—			764			(2,500	)
Merger-related and other charges		(1,297	)		(2,203	)		(2,176	)		(2,157	)		(2,087	)
Noninterest expenses – operating	$	139,802		$	140,853		$	140,889		$	140,551		$	140,415

Net income to operating income reconciliation
Net income (GAAP)	$	71,413		$	75,804		$	47,347		$	66,615		$	62,631
Loss on sale of manufactured housing loans		—			—			27,209			—			—
Gain on lease termination		—			—			—			—			(2,400	)
Loss on FinTrust (goodwill impairment)		—			—			—			5,100			—
FDIC special assessment		—			—			—			(764	)		2,500
Merger-related and other charges		1,297			2,203			2,176			2,157			2,087
Income tax benefit of non-operating items		(281	)		(471	)		(6,276	)		(1,462	)		(493	)
Net income – operating	$	72,429		$	77,536		$	70,456		$	71,646		$	64,325

Net income to pre-tax pre-provision income reconciliation
Net income (GAAP)	$	71,413		$	75,804		$	47,347		$	66,615		$	62,631
Income tax expense		19,746			20,606			12,437			19,362			18,204
Provision for credit losses		15,419			11,389			14,428			12,235			12,899
Pre-tax pre-provision income	$	106,578		$	107,799		$	74,212		$	98,212		$	93,734

Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.58		$	0.61		$	0.38		$	0.54		$	0.51
Loss on sale of manufactured housing loans		—			—			0.18			—			—
Gain on lease termination		—			—			—			—			(0.02	)
Loss on FinTrust (goodwill impairment)		—			—			—			0.03			—
FDIC special assessment		—			—			—			—			0.02
Merger-related and other charges		0.01			0.02			0.01			0.01			0.01
Diluted income per common share – operating	$	0.59		$	0.63		$	0.57		$	0.58		$	0.52

Book value per common share reconciliation
Book value per common share (GAAP)	$	28.42		$	27.87		$	27.68		$	27.18		$	26.83
Effect of goodwill and other intangibles		(7.84	)		(7.87	)		(8.02	)		(8.05	)		(8.12	)
Tangible book value per common share	$	20.58		$	20.00		$	19.66		$	19.13		$	18.71

Return on tangible common equity reconciliation
Return on common equity (GAAP)		7.89	%		8.40	%		5.20	%		7.53	%		7.14	%
Loss on sale of manufactured housing loans		—			—			2.43			—			—
Gain on lease termination		—			—			—			—			(0.22	)
Loss on FinTrust (goodwill impairment)		—			—			—			0.46			—
FDIC special assessment		—			—			—			(0.07	)		0.23
Merger-related and other charges		0.12			0.20			0.19			0.20			0.19
Return on common equity – operating		8.01			8.60			7.82			8.12			7.34
Effect of goodwill and other intangibles		3.20			3.52			3.35			3.56			3.34
Return on tangible common equity – operating		11.21	%		12.12	%		11.17	%		11.68	%		10.68	%

Return on assets reconciliation
Return on assets (GAAP)		1.02	%		1.06	%		0.67	%		0.97	%		0.90	%
Loss on sale of manufactured housing loans		—			—			0.31			—			—
Gain on lease termination		—			—			—			—			(0.03	)
Loss on FinTrust (goodwill impairment)		—			—			—			0.06			—
FDIC special assessment		—			—			—			(0.01	)		0.03
Merger-related and other charges		0.02			0.02			0.03			0.02			0.03
Return on assets – operating		1.04	%		1.08	%		1.01	%		1.04	%		0.93	%

Return on assets to return on assets – pre-tax pre-provision reconciliation
Return on assets (GAAP)		1.02	%		1.06	%		0.67	%		0.97	%		0.90	%
Income tax expense		0.29			0.30			0.19			0.29			0.27
Provision for credit losses		0.23			0.16			0.21			0.18			0.19
Loss on sale of manufactured housing loans		—			—			0.40			—			—
Gain on lease termination		—			—			—			—			(0.04	)
Loss on FinTrust (goodwill impairment)		—			—			—			0.08			—
FDIC special assessment		—			—			—			(0.01	)		0.04
Merger-related and other charges		0.01			0.03			0.03			0.03			0.04
Return on assets – pre-tax pre-provision – operating		1.55	%		1.55	%		1.50	%		1.54	%		1.40	%

Efficiency ratio reconciliation
Efficiency ratio (GAAP)		56.74	%		56.05	%		65.51	%		59.70	%		60.47	%
Loss on sale of manufactured housing loans		—			—			(7.15	)		—			—
Gain on lease termination		—			—			—			—			0.60
Loss on FinTrust (goodwill impairment)		—			—			—			(2.07	)		—
FDIC special assessment		—			—			—			0.31			(1.05	)
Merger-related and other charges		(0.52	)		(0.87	)		(0.99	)		(0.88	)		(0.87	)
Efficiency ratio – operating		56.22	%		55.18	%		57.37	%		57.06	%		59.15	%

Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)		12.56	%		12.38	%		12.45	%		12.35	%		12.06	%
Effect of goodwill and other intangibles		(3.06	)		(3.09	)		(3.20	)		(3.24	)		(3.25	)
Effect of preferred equity		(0.32	)		(0.32	)		(0.32	)		(0.33	)		(0.32	)
Tangible common equity to tangible assets		9.18	%		8.97	%		8.93	%		8.78	%		8.49	%

UNITED COMMUNITY BANKS, INC.
Loan Portfolio Composition at Period-End

		2025	2024									Linked Quarter Change			Year over Year Change
(in millions)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter			First Quarter		Linked Quarter Change			Year over Year Change
LOANS BY CATEGORY
Owner occupied commercial RE	$	3,419	$	3,398	$	3,323	$	3,297		$	3,310	$	21		$	109
Income producing commercial RE		4,416		4,361		4,259		4,058			4,206		55			210
Commercial & industrial		2,506		2,428		2,313		2,299			2,405		78			101
Commercial construction		1,681		1,656		1,785		2,014			1,936		25			(255	)
Equipment financing		1,723		1,663		1,603		1,581			1,544		60			179
Total commercial		13,745		13,506		13,283		13,249			13,401		239			344
Residential mortgage		3,218		3,232		3,263		3,266			3,240		(14	)		(22	)
Home equity		1,099		1,065		1,015		985			969		34			130
Residential construction		171		178		189		211			257		(7	)		(86	)
Manufactured housing ⁽¹⁾		—		2		2		321			328		(2	)		(328	)
Consumer		183		186		188		183			180		(3	)		3
Other		9		7		24		(4	)		—		2			9
Total loans	$	18,425	$	18,176	$	17,964	$	18,211		$	18,375	$	249		$	50

LOANS BY MARKET
Georgia	$	4,484	$	4,447	$	4,470	$	4,411		$	4,356	$	37		$	128
South Carolina		2,821		2,815		2,782		2,779			2,804		6			17
North Carolina		2,666		2,644		2,586		2,591			2,566		22			100
Tennessee		1,880		1,799		1,848		2,144			2,209		81			(329	)
Florida		2,572		2,527		2,423		2,407			2,443		45			129
Alabama		1,009		996		996		1,021			1,068		13			(59	)
Commercial Banking Solutions		2,993		2,948		2,859		2,858			2,929		45			64
Total loans	$	18,425	$	18,176	$	17,964	$	18,211		$	18,375	$	249		$	50

^{(1) At March 31, 2025, manufactured housing loans are included with consumer loans.}

UNITED COMMUNITY BANKS, INC.
Credit Quality
(in thousands)

		2025	2024
	First Quarter		Fourth Quarter		Third Quarter
NONACCRUAL LOANS
Owner occupied RE	$	8,949	$	11,674	$	7,783
Income producing RE		16,536		25,357		31,222
Commercial & industrial		22,396		29,339		28,856
Commercial construction		5,558		7,400		7,356
Equipment financing		8,818		8,925		9,123
Total commercial		62,257		82,695		84,340
Residential mortgage		22,756		24,615		21,851
Home equity		4,091		4,630		4,111
Residential construction		811		57		118
Manufactured housing ⁽²⁾		—		1,444		1,808
Consumer		1,423		138		152
Total nonaccrual loans		91,338		113,579		112,380
OREO and repossessed assets		1,952		2,056		2,580
Total NPAs	$	93,290	$	115,635	$	114,960

		2025				2024
	First Quarter					Fourth Quarter					Third 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 (RECOVERIES) BY CATEGORY
Owner occupied RE	$	126		0.02	%	$	(184	)	(0.02	)%	$	(184	)	(0.02	)%
Income producing RE		718		0.07			(1,001	)	(0.09	)		1,409		0.13
Commercial & industrial		2,447		0.40			4,075		0.69			4,577		0.79
Commercial construction		(138	)	(0.03	)		2		—			36		0.01
Equipment financing		5,042		1.21			5,812		1.43			5,268		1.32
Total commercial		8,195		0.24			8,704		0.26			11,106		0.33
Residential mortgage		(1	)	—			145		0.02			32		—
Home equity		(62	)	(0.02	)		(33	)	(0.01	)		36		0.01
Residential construction		219		0.51			7		0.02			111		0.22
Manufactured housing ⁽²⁾		—		—			114		23.41			11,556		28.51
Consumer		1,256		2.76			580		1.24			810		1.74
Total	$	9,607		0.21		$	9,517		0.21		$	23,651		0.52

^{(1) Annualized.}
^{(2) At March 31, 2025, manufactured housing loans are included with consumer loans.}

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)	March 31, 2025			December 31, 2024
ASSETS
Cash and due from banks	$	198,287		$	296,161
Interest-bearing deposits in banks		438,425			223,712
Cash and cash equivalents		636,712			519,873
Debt securities available-for-sale		4,322,644			4,436,291
Debt securities held-to-maturity (fair value $1,952,235 and $1,944,126, respectively)		2,338,571			2,368,107
Loans held for sale		37,344			57,534
Loans and leases held for investment		18,425,365			18,175,980
Less allowance for credit losses – loans and leases		(211,974	)		(206,998	)
Loans and leases, net		18,213,391			17,968,982
Premises and equipment, net		391,020			394,264
Bank owned life insurance		346,410			346,234
Goodwill and other intangible assets, net		953,357			956,643
Other assets		634,269			672,330
Total assets	$	27,873,718		$	27,720,258
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	6,257,032		$	6,211,182
NOW and interest-bearing demand		6,155,141			6,141,342
Money market		6,637,506			6,398,144
Savings		1,105,374			1,100,591
Time		3,446,567			3,441,424
Brokered		160,785			168,292
Total deposits		23,762,405			23,460,975
Short-term borrowings		—			195,000
Long-term debt		254,287			254,152
Accrued expenses and other liabilities		356,130			378,004
Total liabilities		24,372,822			24,288,131
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, 119,514,298 and 119,364,110 shares issued and outstanding, respectively		119,514			119,364
Common stock issuable; 584,083 and 600,168 shares, respectively		12,983			12,999
Capital surplus		2,711,721			2,710,279
Retained earnings		754,971			714,138
Accumulated other comprehensive loss		(186,559	)		(212,919	)
Total shareholders’ equity		3,500,896			3,432,127
Total liabilities and shareholders’ equity	$	27,873,718		$	27,720,258

UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)

	Three Months Ended March 31,
(in thousands, except per share data)		2025		2024
Interest revenue:
Loans, including fees	$	274,056	$	283,983
Investment securities, including tax exempt of $1,678 and $1,721, respectively		58,850		46,436
Deposits in banks and short-term investments		2,451		6,309
Total interest revenue		335,357		336,728

Interest expense:
Deposits:
NOW and interest-bearing demand		37,390		46,211
Money market		49,541		50,478
Savings		624		706
Time		31,379		36,389
Deposits		118,934		133,784
Short-term borrowings		1,107		—
Federal Home Loan Bank advances		433		—
Long-term debt		2,862		3,795
Total interest expense		123,336		137,579
Net interest revenue		212,021		199,149

Noninterest income:
Service charges and fees		9,535		9,264
Mortgage loan gains and other related fees		6,122		7,511
Wealth management fees		4,465		6,313
Net gains from sales of other loans		1,396		1,537
Lending and loan servicing fees		4,165		4,210
Securities gains, net		6		—
Other		9,967		10,752
Total noninterest income		35,656		39,587

Provision for credit losses		15,419		12,899

Noninterest expenses:
Salaries and employee benefits		84,267		84,985
Communications and equipment		13,699		11,920
Occupancy		10,929		11,099
Advertising and public relations		1,881		1,901
Postage, printing and supplies		2,561		2,648
Professional fees		5,931		5,988
Lending and loan servicing expense		1,987		1,827
Outside services – electronic banking		2,763		2,918
FDIC assessments and other regulatory charges		4,642		7,566
Amortization of intangibles		3,286		3,887
Merger-related and other charges		1,297		2,087
Other		7,856		8,176
Total noninterest expenses		141,099		145,002
Income before income taxes		91,159		80,835
Income tax expense		19,746		18,204
Net income		71,413		62,631
Preferred stock dividends		1,573		1,573
Earnings allocated to participating securities		411		345
Net income available to common shareholders	$	69,429	$	60,713

Net income per common share:
Basic	$	0.58	$	0.51
Diluted		0.58		0.51
Weighted average common shares outstanding:
Basic		120,043		119,662
Diluted		120,201		119,743

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,

		2025							2024
*(dollars in thousands, fully taxable equivalent (FTE))*	Average Balance			Interest		Average Rate		Average Balance			Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾	$	18,213,501		$	273,930	6.10	%	$	18,299,739		$	283,960	6.24	%
Taxable securities ⁽³⁾		6,737,658			57,172	3.39			5,828,391			44,715	3.07
Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾		356,712			2,245	2.52			366,350			2,311	2.52
Federal funds sold and other interest-earning assets		400,592			3,001	3.04			674,594			6,805	4.06
Total interest-earning assets (FTE)		25,708,463			336,348	5.29			25,169,074			337,791	5.39

Noninterest-earning assets:
Allowance for credit losses		(210,169	)						(212,996	)
Cash and due from banks		219,540							221,203
Premises and equipment		396,443							386,021
Other assets ⁽³⁾		1,610,104							1,618,315
Total assets	$	27,724,381						$	27,181,617

Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	6,134,004			37,390	2.47		$	6,078,090			46,211	3.06
Money market		6,583,963			49,541	3.05			5,864,217			50,478	3.46
Savings		1,096,308			624	0.23			1,192,828			706	0.24
Time		3,446,048			30,831	3.63			3,596,486			35,944	4.02
Brokered time deposits		50,447			548	4.41			50,343			445	3.56
Total interest-bearing deposits		17,310,770			118,934	2.79			16,781,964			133,784	3.21
Federal funds purchased and other borrowings		80,760			1,107	5.56			13			—	—
Federal Home Loan Bank advances		38,900			433	4.51			4			—	—
Long-term debt		254,220			2,862	4.57			324,838			3,795	4.70
Total borrowed funds		373,880			4,402	4.77			324,855			3,795	4.70
Total interest-bearing liabilities		17,684,650			123,336	2.83			17,106,819			137,579	3.23

Noninterest-bearing liabilities:
Noninterest-bearing deposits		6,194,217							6,398,079
Other liabilities		369,939							390,451
Total liabilities		24,248,806							23,895,349
Shareholders’ equity		3,475,575							3,286,268
Total liabilities and shareholders’ equity	$	27,724,381						$	27,181,617

Net interest revenue (FTE)				$	213,012						$	200,212
Net interest-rate spread (FTE)						2.46	%						2.16	%
Net interest margin (FTE) ⁽⁴⁾						3.36	%						3.20	%

^{(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 $991,000 and $1.06 million, respectively, for the three months ended March 31, 2025 and 2024. The tax rate used to calculate the adjustment was 26%, 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 $269 million in 2025 and $322 million in 2024 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 committed to building stronger communities and improving the financial health and well-being of its customers. United Community offers a full range of banking, mortgage and wealth management services. As of March 31, 2025, United Community Banks, Inc. had $27.9 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. The company also manages a nationally recognized SBA lending franchise and a national equipment finance subsidiary, extending its reach to businesses across the country. United 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. The company has also been recognized eight consecutive years by American Banker as one of the “Best Banks to Work For.” In commercial banking, United earned five 2025 Greenwich Best Brand awards, including national honors for middle market satisfaction. Forbes has consistently named United among the World’s Best and America’s Best Banks. Learn more at ucbi.com.

Non-GAAP Financial Measures
This 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, 2024, 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 Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com

United Community Banks, Inc. Reports First Quarter Earnings

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