United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q3 2024 Earnings Presentation

27 slides from United Community Banks's earnings presentation, Oct 23, 2024

  1. Slide 1: 3Q24 Investor Presentation

    3Q24 Investor Presentation October 23, 2024 Member FDIC. © 2024 United Community Bank | ucbi.com

  2. Slide 2: Disclosures

    Disclosures CAUTIONARY STATEMENT This Investor Presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be ide

  3. Slide 3: United Community Banks, Inc. Company Overview

    United Community Banks, Inc. Company Overview $27.4 $3.1 $18.0 BILLION IN BILLION IN 13.1% (2) BILLION IN TOTAL (1) CET1 RBC TOTAL AUA ASSETS LOANS Regional Full-Service Branch Network National Navitas and SBA Markets $23.3 $0.24 202 BILLION IN QUARTERLY BANKING OFFICES TOTAL COMMON ACROSS THE DEPOS

  4. Slide 4: 3Q24 Highlights

    $0.38 5.20% Diluted earnings per share – GAAP Return on common equity – GAAP 3Q24 Highlights $0.57 11.17% Diluted earnings per share – Return on tangible common equity – 1) (1) operating( operating Diluted Earnings Per Share Return on Average Assets 1.04% 1.01% $0.58 0.97% 65.5% $0.45 $0.54 $0.57 0.

  5. Slide 5: Hurricane Helene Impact – Flooding in Western NC

    Hurricane Helene Impact – Flooding in Western NC Special Reserve Counties Exposure ($ millions) Outstanding County Deposits Loans Henderson $171 $117 Branch Buncombe 87 Locations Transylvania 158 56 Avery 85 50 Yancey 94 31 Mitchell 305 22 McDowell 9 Polk 8 Rutherford 4 Total $813 $383 Special Reser

  6. Slide 6: Manufactured Housing ("MH") Loan Portfolio Sale Impact

    Manufactured Housing (“MH”) Loan Portfolio Sale Impact Transaction Description Portfolio Sale Impact $ in millions, except per share  On August 30, 2024, we closed on the divestiture of Pre-Tax After Tax After Tax approximately $318 million of manufactured housing (“MH”) loans, Per Share a business

  7. Slide 7: Outstanding Deposit Franchise

    Outstanding Deposit Franchise 3Q24 Change in Customer Deposits $ in millions Customer Deposit Growth $225 $158  Total deposits were up $271 million, or 4.7% annualized, ($21) $23,080 from 2Q24 $22,818 ($69) ($32)  Core transaction deposits up $244 million, or 5.9% annualized, from 2Q24  Public fu

  8. Slide 8: Deposit Trends

    Deposit Trends Total Deposit Mix Trend $ in billions  Deposits are granular with a $34,000 average account size $22.9 $23.3 $23.3 $23.0 $23.3 and are diverse by industry and geography $6.8 $6.5 $6.4 $6.3 $6.2  Business deposits of $8.9 billion and personal deposits of 30% $11.3 billion in 3Q24 28%

  9. Slide 9: Well-Diversified Loan Portfolio

    Well-Diversified Loan Portfolio 3Q24 Loan Portfolio Growth, Ex. MH Sale $ in millions Quarter Highlights $62 $201 $32 $28  Loan shrinkage primarily driven by $318 million $18,211 sale of the MH portfolio ($319) ($251) $17,964  Senior Care portfolio down $38 million, or 11%, Largely Commercial from

  10. Slide 10: Balance Sheet Strength – Liquidity and Capital

    Balance Sheet Strength – Liquidity and Capital Loans / Core Deposits % 97%  Substantial balance sheet liquidity and above-peer capital ratios  $6.4 billion securities portfolio offers significant near- and medium-term cash flow opportunities  FHLB borrowings remained at zero in 3Q24  0.7% of tot

  11. Slide 11: Capital

    Capital Risk-Based Capital Ratios  3Q24 regulatory risk-based capital ratios increased 14.5% 14.5% 14.6% 15.1% 15.3% from 2Q24 and remained above peers 14.2% 1.8% 1.8%  The leverage ratio increased 6 bps to 9.99%, as 1.9% 1.9% 1.8% 1.9% 0.5% 0.4% 0.5% 0.5% 0.4% 0.6% compared to 2Q24  Quarterly co

  12. Slide 12: Net Interest Revenue / Margin

    (1) Net Interest Revenue / Margin Net Interest Revenue & Net Interest Margin $ in millions  Net interest revenue increased $0.5 million from 2Q24 $208.7 $209.2  Core net interest margin, excluding purchase loan accretion, was down $202.6 4.00% $ 200.0 2 bps to 3.26%  MH sale decreased NIM by 1 bp

  13. Slide 13: Noninterest Income - Operating

    Noninterest Income - Operating $ in millions Linked Quarter $37.2 $36.6  GAAP noninterest income was down $28.5 million to $8.1 $35.3 million, primarily due to the loss on the sale of our MH loan portfolio $32.0  On an operating basis, noninterest income decreased $1.3 $12.6 $11.5 million from 2Q2

  14. Slide 14: Noninterest Expense

    Noninterest Expense Efficiency Ratio 66.3%  The GAAP efficiency ratio was unfavorably impacted by the 65.5% one-time sale of the MH portfolio  The operating efficiency ratio was relatively flat from the prior 61.3% 60.5% quarter and prior year 59.7% 58.1% 59.6% 59.2% 57.4% 57.1% 57.4% 3Q23 4Q23 1Q

  15. Slide 15: Credit Quality

    Credit Quality Net Charge-Offs as % of Average Loans  3Q24 net charge-offs of $23.7 million, or 0.52% of loans annualized  The MH transaction necessitated an estimate of lifetime expected 0.59% 0.52% losses, which translated into $11.0 million, or 0.24% of the 0.52% total. MH charge-offs not relat

  16. Slide 16: Allowance for Credit Losses

    Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk-Forward $ in thousands  The GAAP loan loss provision of $14.4 million included a $9.9 million provision $224,740 ($960) ($1,491) $9,892 increase for the $383 million in loans in $215,518 the nine NC counties that experienced ($10,99

  17. Slide 17: 3Q24 Exhibits

    3Q24 INVESTOR PRESENTATION Exhibits Member FDIC. © 2024 United Community Bank | ucbi.com

  18. Slide 18: Average Deposit Costs

    Average Deposit Costs 3Q23 4Q23 1Q24 2Q24 3Q24 $ in billions; rates annualized Average Average Average Average Average Average Average Average Average Average Balance Rate Balance Rate Balance Rate Balance Rate Balance Rate DDA $6.9 N/A $6.7 N/A $6.4 N/A $6.3 N/A $6.2 N/A NOW $5.3 2.67% $6.0 2.96% $

  19. Slide 19: Navitas Performance

    Navitas Performance Navitas Portfolio $ in millions $1,800  Navitas represents 9% of total loans 9.43% 9.58% 9.64% $1,600 8.85% 8.80% 8.79% 8.88% 8.99% 9.12% 9.25% 9.30% 10.00%  Navitas ACL / Loans of 2.86% $1,400  Navitas 3Q24 NCOs of 1.34% annualized, or $5.3 million 8.00% $1,200 $1,000 6.00% 

  20. Slide 20: Selected Portfolios – Office

    Selected Portfolios – Office Top 10 MSAs by Note Current Balance + Unfunded Commitment – Weighted Avg. LTV 61.7% 3Q24 Portfolio Characteristics $ in millions Outstanding $810.0 million Atlanta, GA LTV 61.9% $122.4 % of Total Loans 4.5% Charleston, SC LTV 62.8% $98.9 Average1%Loan Size $1.4 million M

  21. Slide 21: Selected Portfolios – Multi-Family

    Selected Portfolios – Multi-Family Top 10 MSAs by Note Current Balance + Unfunded Commitment – Weighted Avg. LTV 50.3% 3Q24 Portfolio Characteristics $ in millions Outstanding $906.0 million Atlanta, GA LTV 42.4% $115.3 % of Total Loans 5.0% Raleigh, NC LTV 39.9% $111.3 Average1%Loan Size $2.6 milli

  22. Slide 22: Selected Portfolios – Senior Care

    Selected Portfolios – Senior Care Investment CRE – Senior Care Outstanding 3Q24 Portfolio Characteristics $ in millions Outstanding $317.0 million $518 $465 % of Total Loans 1.8% $442 $408 $410 Average1%Loan Size $7.2 million $394 $388 $382 $369 6% $355 20% $317 Median Loan Size $5.7 million Largest

  23. Slide 23: Mortgage Activity Trends

    Mortgage Activity Trends Mortgage Locks & Sales $ in millions $350 4.00%  Rate locks were $306 million compared to $295 million in 3.50% 2Q24, driven primarily by seasonality 3.0% $300 $304 2.9% $295 $306 2.8% 2.9% 3.00%  89% of locked loans were fixed rate mortgages, which were 2.4% $260 $250 2.5

  24. Slide 24: Footprint Focused on High-Growth Southeast MSAs

    Footprint Focused on High-Growth Southeast MSAs Top 10 MSAs - % of Total Deposits Fastest Growing UCBI's % ’23 – ’28 ’23 – ’28 Major Southeast of Total Proj. Pop. Proj. HHI. MSAs (1) Deposits Growth % Growth % Myrtle Beach, SC 1) Raleigh, NC 3.73% 7.40 11.77 Charlotte, NC 2) Jacksonville, FL 0.52% 6

  25. Slide 25: Non-GAAP Reconciliation Tables

    Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q23 4Q23 1Q24 2Q24 3Q24 Noninterest Income Noninterest income - GAAP $ 31,977 $ (23,090) $ 39,587 $ 36,556 $ 8,091 Loss on sale of manufactured housing loans - - - - 27,209 Gain on lease termination - - (2,400) - - Bond portfolio

  26. Slide 26: Non-GAAP Reconciliation Tables

    Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q23 4Q23 1Q24 2Q24 3Q24 Return on Assets Return on assets - GAAP 0.68 % 0.18 % 0.90 % 0.97 % 0.67 % Loss on sale of manufactured housing loans - - - - 0.31 Merger-related and other charges - 0.06 0.03 0.01 0.03 Bond portfolio rest

  27. Slide 27: Glossary

    Glossary ACL – Allowance for Credit Losses MLO – Mortgage Loan Office ALLL – Allowance for Loan Losses MMDA – Money Market Deposit Account AOCI – Accumulated Other Comprehensive Income (Loss) MTM – Marked-to-Market AUA – Assets Under Administration MSA – Metropolitan Statistical Area BPS – Basis Poi

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