United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q4 2021 Earnings Presentation

27 slides from United Community Banks's earnings presentation, Jan 19, 2022

  1. Slide 1: 4Q21 Investor Presentation

    4Q21 Investor Presentation January 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 $20.9 $11.8 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full Service Branch Network National Navitas and SBA Markets $4.7 $18.2 BILLION IN BILLION IN AUA TOTAL DEPOSITS 100 BEST BANKS IN Banking Offices 13.1% A

  5. Slide 5: 4Q21 Highlights

    $0.55 9.3% Diluted earnings per share Return on common equity - GAAP - GAAP $0.64 13.9% 4Q21 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% 1.30% 1.34% 0.96% 6.9% $0.66

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

    Long-Term Financial Performance & Shareholder Return (1) (1) ROA - Operating ROTCE - Operating 1.51% 17.33% 1.42% 15.81% 1.40% 15.69% 12.24% 1.09% 1.07% 12.02% 1.06% 11.86% 0.98% 0.91% 10.24% 9.32% 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 UCBI KRX UCBI KRX Perf

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

    UCBI Focused on High-Growth MSAs in Southeast United Operates in the Top Growth Markets Projected Population Growth (2) 2022 – 2027 (%) United Now Operates in the Top Growth Markets 4.9% '27 Proj. '22 - '27 Proj. Median 3.2% Fastest Growing Pop. Growth '22 Household Southeast MSAs (1) % Population I

  8. Slide 8: Diversified Loan Portfolio

    8 Diversified Loan Portfolio Quarter Highlights 4Q21 Total Loans $11.8 billion  Loans, excluding PPP and Aquesta, Residential PPP increased $190 million, or 6.9% Construction annualized Home Equity 3% 1% 6%  Sold $19.9 million of Navitas loans  Sold $33.8 million of SBA loans Residential Mortgage

  9. Slide 9: Valuable Deposit Mix

    Valuable Deposit Mix 4Q21 Total Deposits 18.2 billion Time  Total deposits were up $1.4 billion from Savings 8% 3Q21 and up $3.0 billion YOY 7% DDA • Excluding Aquesta, 4Q21 total deposits 38% grew $718 million, or 17.0% annualized 24% • Excluding Aquesta, total deposits were up MMDA $2.4 billion,

  10. Slide 10: Liquidity Build Presents Opportunity

    10 Liquidity Build Presents Opportunity $ in billions $20.0 Loans and Deposits $18.0 97% $18.2 $16.0 $16.9 $16.0 $16.3 $14.0 $15.2 87% $0.1 $12.0 $0.2 $0.6 $0.9 $0.5 $10.0 $11.8 $10.8 $10.8 $10.9 $11.0 $8.0 77% 75% $6.0 73% 70% $4.0 67% 66% 64% $2.0 $0.0 57% Loans Deposits Loans Deposits Loans Depos

  11. Slide 11: Capital Ratios

    Capital Ratios 3Q21 KRX UCBI Holding Company 4Q20 1Q21 2Q21 3Q21 4Q21* Peer Median vs. KRX Common Equity Tier 1 Capital 12.3 % 12.3 % 12.6 % 12.6 % 12.0 % + 0.6 % 12.4 % Tier 1 Risk-Based Capital 13.1 13.1 13.3 13.4 12.3 + 1.1 13.1 Total Risk-Based Capital 15.2 14.9 15.1 14.9 14.5 + 0.4 14.6 Leverag

  12. Slide 12: Net Interest Revenue / Margin

    (1) Net Interest Revenue / Margin $ in millions $145.4 $141.0 $137.6 0.01% 3.12% (0.06%) (0.05%) (0.21%) 2.81% (%) 3.55% 3.12% 2.81% 2.92% 2.71% 2.66% 4Q20 3Q21 4Q21 3Q NIM Surplus Interest Rates Loan PPP Fees 4Q NIM Liquidity / Mix / Other Accretion Net Interest Revenue ($ in millions) Net Interest

  13. Slide 13: Noninterest Income

    Noninterest Income $ in millions Linked Quarter $44.7  Fees down $2.9 million $1.0 • Mortgage fees down $2.9 million from 3Q21 $41.4 primarily due to seasonal declines in volume; $40.1 $1.5 partially offset by a $0.8 million MSR write-up $2.4 $37.2 $35.8 • Rate locks were down with $695 million com

  14. Slide 14: Disciplined Expense Management

    Disciplined Expense Management $ in millions $109.2 Linked Quarter $106.5 $104.0  Annualized GAAP and operating $96.7 $99.2 expenses increased 12.8% and 4.1%, $95.2 $95.5 $94.5 $95.3 $93.7 respectively • Primary reason for 4Q increase is due to 62.1% Aquesta Year-over-Year 56.7%  GAAP expenses inc

  15. Slide 15: PPP Update

    PPP Update PPP Totals ($ in millions) $88 $1,802 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Not Forgiven Forgiven  As of December 31, approximately 95% of our PPP loans, representing $1.9 billion in loans, have been forgiven by the SBA  We have $88 million in PPP loans remain

  16. Slide 16: Credit Quality

    Credit Quality Net Charge-Offs as % of Average Loans 0.30% 0.25%  4Q21 net charge-offs of $248 0.25% thousand, or 0.01% of average 0.20% loans, annualized 0.15% 0.10% 0.09% 0.05% 0.05% 0.02% 0.01% -0.01% 0.00% -0.02% -0.05% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Provision for Credit Losses & NCOs ($ in

  17. Slide 17: Higher-Risk Loan Trends

    Higher-Risk Loan Trends Special Mention & Substandard Accruing Loans as a % of Total Loans 3.5% 3.2% 3.2% 3.0% 2.6% 2.6% 2.5% 2.5%  Special mention loans increase by 0.10% 2.0% (from $278 million in 3Q21 to $304 million 1.5% 1.5% 1.5% 1.7% 1.6% in 4Q21, an increase of $26 million) 1.0% 1.4% • Aques

  18. Slide 18: ACL Walk Forward

    ACL Walk Forward $2,127 $3,266 $3,544 $113,524 ($550) ($248) ($9) $110,875 ($5,481) ($000) 3Q21 ACL Loan Growth Reserve for NCOs Specific Reserve Model / Forecast Aquesta Aquesta 4Q21 ACL Unfunded Changes Day 1 PCD Day 2 Non PCD Commitments Credit Allowance Double Dip (net of Aquesta) ACL / Loans: 0

  19. Slide 19: Enhancing Our Franchise Through Strategic M&A

    Enhancing Our Franchise Through Strategic M&A Enhancing United’s High-Growth Southeast Footprint Reliant Highlights  7/6/2021 – Closed the FinTrust Capital Partners, LLC acquisition  $3 billion community bank with top 10 market share in the  10/1/2021 – Closed the Aquesta Financial Holdings, Inc.

  20. Slide 20: Exhibits

    4Q21 INVESTOR PRESENTATION Exhibits

  21. Slide 21: Blended Cash and Securities Yield

    21 Blended Cash and Securities Yield $ in billions Cash and Securities $7.0 2.50% $2.2 $6.0 $1.7 $1.3 2.00% $5.0 1.80% $1.2 $1.5 1.58% 1.53% 1.50% $4.0 1.38% $0.9 1.32% 1.31% $3.0 $1.2 $0.4 $0.4 $5.7 1.00% $5.3 0.86% $4.9 $2.0 $4.3 0.69% 0.65% $3.6 $2.6 $2.5 $3.1 0.50% $2.4 $1.0 $0.0 0.00% 4Q19 1Q20

  22. Slide 22: Navitas Performance

    Navitas Performance $ in millions $200 24.7% 25.8% $204 25.0% 22.6% 22.9% $181 $186 19.7% $150 20.0% 19.7% $145 $148 $134 $125 $126 15.0% $100 9.30% 9.45% $94 9.19% 9.12% 9.08% 9.08% 9.01% 8.89% 10.0% 8.2% 8.9% 9.39% 9.4% $50 5.0% $0 0.0% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Originations $ L

  23. Slide 23: Expanding Mortgage Throughout the Footprint

    Expanding Mortgage Throughout the Footprint $ in millions $1,200 6.0% 5.4% 5.1% 4.8% $1,000 5.0% 4.3% $993 4.4% $910 3.9% $800 3.7% 4.0% 3.3% $801 $802 $792 $731 $702 $695 $600 3.0% 2.8% $400 2.0% $411 $395 $402 $410 $407 $336 $320 $200 $259 $285 1.0% $225 $0 0.0% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

  24. Slide 24: Selected Segments – Senior Care

    Selected Segments – Senior Care $ in millions $535 $537 $549 $520 $486 $503 $511 $500 $456 $463 1% 6% $400 20% $300 $200 49% $170 $170 25% $169 $172 $100 $100 $34 $64 $73 $73 $10 $13 $11 $13 $46 $48 $7 $7 $21 $0 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Nonaccruals $ Substandard Accruing $ Specia

  25. Slide 25: Non-GAAP Reconciliation Tables

    25 Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q20 1Q21 2Q21 3Q21 4Q21 Expenses Expenses - GAAP $ 106,490 $ 95,194 $ 95,540 $ 96,749 $ 109,156 Merger-related and other charges (2,452) (1,543) (1,078) (1,437) (9,912) Expenses - Operating $ 104,038 $ 93,651 $ 94,462 $ 95,312

  26. Slide 26: Non-GAAP Reconciliation Tables

    26 Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q20 1Q21 2Q21 3Q21 4Q21 Return on Assets to return on assets- pre-tax pre-provision Return on assets - GAAP 1.30 % 1.62 % 1.46 % 1.48 % 0.96 % Income tax expense 0.40 0.46 0.47 0.45 0.26 Provision for credit losses 0.07 (0.28)

  27. Slide 27: Glossary

    27 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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