United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q3 2022 Earnings Presentation

24 slides from United Community Banks's earnings presentation, Oct 18, 2022

  1. Slide 1: 3Q22 Investor Presentation

    3Q22 Investor Presentation October 18, 2022

  2. Slide 2: Disclosures: Cautionary Statement

    Disclosures CAUTIONARY STATEMENT This communication 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

  3. Slide 3: Disclosures: Non-GAAP Measures

    Disclosures NON-GAAP MEASURES This Investor Presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures, which exclude merger-related and

  4. Slide 4: United Community Banks, Inc. Company Overview

    United Community Banks, Inc. Company Overview Committed to Service Since 1950 $23.7 $14.9 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full Service Branch Network National Navitas and SBA Markets $4.0 $20.3 BILLION IN BILLION IN AUA TOTAL DEPOSITS UCBI Banking Offices Progress Branches 10

  5. Slide 5: 3Q22 Highlights

    $0.74 11.0% Diluted earnings per share Return on common equity – GAAP – GAAP $0.75 15.6% 3Q22 Highlights Diluted earnings per share Return on tangible common – operating(1) equity – operating(1) Diluted Earnings Per Share Return on Average Assets $0.82 $0.83 1.48% 1.50% $0.74 $0.75 1.32%1.34% 1.32%

  6. Slide 6: Long-Term Financial Performance & Shareholder Return

    Long-Term Financial Performance & Shareholder Return (1)(2) (1)(2) ROA ROTCE 1.51% 17.33% 1.40% 1.42% 15.69% 15.81% 15.60% 1.34% 14.20% 1.17% 12.24% 1.09% 1.07% 12.02% 11.00% 0.89% 2017 2018 2019 2020 2021 1Q22 2Q22 3Q22 2017 2018 2019 2020 2021 1Q22 2Q22 3Q22 UCBI - GAAP UCBI - Operating KRX Peer M

  7. Slide 7: Footprint Focused on High-Growth MSAs in Southeast

    Footprint Focused on High-Growth MSAs in Southeast Fastest Growing UCBI (3) ’22 – ’27 ’22 – ’27 ’22 Total UCBI(3) ’22 – ’27 ’22 – ’27 ’22 Total Fastest Growing Mid- Major Southeast Market (%) of Total Proj. Pop. Proj. HHI. Deposits (2) Market (%) of Total Proj. Pop. Proj. HHI. Deposits Size Southeas

  8. Slide 8: Outstanding Deposit Franchise

    Outstanding Deposit Franchise 3Q22 Total Deposits $20.3 billion Time  Favorable core deposit mix and deposit Savings 8% costs below peers 8% 40% DDA  Cost of deposits increased to 0.19%; up 11 bps from 2Q22, with a 144 bps increase in 23% the average Fed Funds rate, equating to an MMDA 8% deposit

  9. Slide 9: Well-Diversified Loan Portfolio

    9 Well-Diversified Loan Portfolio 3Q22 Total Loans $14.9 billion Quarter Highlights Manufactured Residential Construction Housing  Loans increased $341 million, or 9.4% Home Equity 3% 2% annualized 6% Granular Loan Portfolio Residential  Construction & CRE ratio as a Mortgage percentage of total R

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

    Balance Sheet Strength – Liquidity and Capital Loans / Deposits %  Substantial balance sheet liquidity and 81% above-peer capital ratios 73% 73%  $6.5 billion securities portfolio offers 70% 70% 66% 68% significant near- and medium-term cash 64% flow opportunities 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q2

  11. Slide 11: Capital

    Capital Risk-Based Capital Ratios* CET1 Non-common Tier 1 Tier 2 Total  3Q22 capital ratios increased and 15.1% 14.9% 14.7% 14.3% 14.5% 13.7% 14.6% are above peers 1.8% 1.6% 1.5%  The leverage ratio increased 27 1.9% 1.9% 1.9% 0.8% 0.8% 0.7% 1.8% 0.6% 0.6% 0.6% 0.5% bps to 9.3% as compared to 2Q22

  12. Slide 12: Net Interest Revenue / Margin

    (1) Net Interest Revenue / Margin $ in millions $199.8 0.33% (0.01%) (0.01%) $178.9 3.57% 0.07% 3.19% $141.0 3.57% (%) 3.19% 3.53% 3.12% 3.13% 2.71% 3Q21 2Q22 3Q22 2Q22 NIM Mix Change Higher Interest Loan Accretion PPP Fees 3Q22 NIM Net Interest Revenue ($ in millions) Rates Net Interest Margin (1)

  13. Slide 13: Noninterest Income

    Noninterest Income Linked Quarter $ in millions  Fees were down $1.5 million $40.1 • Mortgage fees were down $674 thousand from $39.0 $2.4 $37.2 2Q22 primarily due to lower lock volume driven $3.2 by higher interest rates $3.8 $33.5 • Rate locks were $456 million compared to $597 $31.9 million in 2

  14. Slide 14: Disciplined Expense Management

    Disciplined Expense Management Efficiency Ratio % 62.1%  The efficiency ratio improved compared to 57.4% 56.6% last quarter and last year due to the 54.5% 53.1% 53.6% 56.5% 55.9% combination of higher rates and the 52.7% 53.9% 52.3% 53.1% 53.2% 48.4% achievement of merger-related cost savings 47.7%

  15. Slide 15: Credit Quality

    Credit Quality Net Charge-Offs as % of Average Loans  3Q22 net charge-offs of $1.1 million, or 0.03% of average loans, annualized 0.08% 0.02% 0.01% 0.03%  Non-performing assets increased by $1.1 million during the quarter and were 0.24% of total loans -0.01% -0.02% -0.03%  Special mention loans i

  16. Slide 16: Allowance for Credit Losses

    Allowance for Credit Losses ACL Walk Forward $10,946  The provision for credit losses $4,327 $167,300 was $15.4 million in 3Q22 $153,042 ($1,134) ($119)  Solid loan growth accounted for $4.3 million of the ($000) provision increase  Moody’s economic forecast worsened to reflect higher expected un

  17. Slide 17: 3Q22 Exhibits

    3Q22 INVESTOR PRESENTATION Exhibits

  18. Slide 18: Interest Rate Sensitivity

    18 Interest Rate Sensitivity Net Interest Income Sensitivity 8.65% 4.45% 5.33% 3.60% 1.12% 1.12% +25 bps +100 bps +200 bps % Change - Shocks % Change - Ramps  4.45% asset sensitivity in +100 bps ramp; down from 4.85% asset sensitivity in 2Q22  One 25 bp Fed rate hike is worth approximately 4.5 bps

  19. Slide 19: Navitas Performance

    Navitas Performance $ in millions Navitas Originations*  Navitas represents 9% of total $25 0 8.07% 7.80% 7.86% 7.93% 7.55% 7.45% 7.37% 7.53% 7.79% 9.0 0% loans 7.14% 8.0 0% $20 0 7.0 0%  Navitas 3Q22 NCOs of 0.36%, or $1.1 million 6.0 0% $15 0 5.0 0% $221 $213 $212  Average quarterly losses 4.0

  20. Slide 20: Mortgage Activity Shift to Purchase & Adj. Rate Loans

    Mortgage Activity Shift to Purchase & Adj. Rate Loans $ in millions $1, 200 5.0% 5.0% 5.5 % 4.6% $1, 000 3.8% 4.0% 4.5 % 3.9% 3.7% $993 3.6% $80 0 $910 3.1% 3.5 % $792 $731 $757 $60 0 $702 $695 2.5 % $597 $456 $40 0 1.5 % $402 $410 $407 $336 $320 $20 0 $285 0.5 % $207 $160 $93 $0 -0.5% 3Q20 4Q20 1Q2

  21. Slide 21: Selected Segments – Senior Care

    Selected Segments – Senior Care $ in millions $535 $537 $549 $520 $518 $503 $511 $465 $442 1% 6% 20% 49% 25% $170 $170 $169 $172 $144 $135 $124 $100 $34 $46 $48 $64 $73 $73 $66 $59 $58 $21 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Substandard Accruing $ Special Mention $ Pass $  Senior Care lend

  22. Slide 22: Non-GAAP Reconciliation Tables

    22 Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q21 4Q21 1Q22 2Q22 3Q22 Expenses Expenses - GAAP $ 96,749 $ 109,156 $ 119,275 $ 120,790 $ 112,755 Merger-related and other charges (1,437) (9,912) (9,016) (7,143) (1,746) Expenses - Operating $ 95,312 $ 99,244 $ 110,259 $ 113,6

  23. Slide 23: Non-GAAP Reconciliation Tables

    23 Non-GAAP Reconciliation Tables $ in thousands, except per share data 3Q21 4Q21 1Q22 2Q22 3Q22 Return on Assets to return on assets- pre-tax pre-provision Return on assets - GAAP 1.48 % 0.96 % 0.78 % 1.08 % 1.32 % Income tax expense 0.45 0.26 0.20 0.32 0.37 (Release of) provision for credit losses

  24. Slide 24: Glossary

    24 Glossary ACL – Allowance for Credit Losses MLO – Mortgage Loan Officer ALLL – Allowance for Loan Losses MTM – Marked-to-market AUA – Assets Under Administration MSA – Metropolitan Statistical Area BPS – Basis Points MSR – Mortgage Servicing Rights Asset C&I – Commercial and Industrial NCO – Net C

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