United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q1 2021 Earnings Presentation

24 slides from United Community Banks's earnings presentation, Apr 20, 2021

  1. Slide 1: 1Q21 Investor Presentation

    1Q21 Investor Presentation April 20, 2021

  2. Slide 2: Disclosures

    Disclosures CAUTIONARY STATEMENT This Investor Presentation contains forward-looking statements about United Community Banks, Inc. (“United”), as defined in federal securities laws. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-

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

    United Community Banks, Inc. Company Overview Committed to Service Since 1950 $18.6 $11.7 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full Service Branch Network National Navitas and SBA Markets $2.4 $16.0 BILLION IN BILLION IN AUA TOTAL DEPOSITS 100 BEST BANKS IN Banking Offices 13.2% A

  4. Slide 4: 1Q21 Highlights

    $0.82 15.4% Diluted earnings per share Return on common equity - GAAP – GAAP $0.83 19.7% 1Q21 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 1.62%1.65% 1.62% 3% $0.66 $0.68 1.30% 1.

  5. Slide 5: Long-Term Financial Performance & Shareholder Return

    Long-Term Financial Performance & Shareholder Return (1) (1) ROA - operating ROTCE - operating 1.65% 19.68% 1.51% 1.40% 15.69% 15.81% 1.06% 1.09% 1.07% 12.02% 12.24% 0.98% 11.86% 0.91% 10.24% 9.32% 2014 2015 2016 2017 2018 2019 2020 1Q21 2014 2015 2016 2017 2018 2019 2020 1Q21 UCBI KRX UCBI KRX Perf

  6. Slide 6: UCBI Focused on High-Growth MSAs in Southeast

    UCBI Focused on High-Growth MSAs in Southeast Located in Most of the Top 20 Markets in the Region Projected Population Growth (2) High-Growth MSAs in the Southeast 2021 – 2026 (%) Fastest Grow ing ‘21 – ’26 Proj. ’21 ‘26 Proj. Median 5.7% Southeast MSAs (1) Pop. Grow th % Population Household Incom

  7. Slide 7: Diversified Loan Portfolio

    7 Diversified Loan Portfolio Quarter Highlights 1Q21 Total Loans $11.7 billion  Loans increased $308 million in 1Q21, primarily due to the addition of $518 PPP Residential million in third round PPP loans Construction 8% 2%  1Q21 core loan growth of $71 million, or Home Equity 3% annualized exclud

  8. Slide 8: Credit Quality

    Credit Quality Net Charge-Offs as % of Average Loans 0.40% 0.37%  1Q21 net recoveries of $305 thousand, or 0.35% 0.30% 0.01% of average loans, annualized 0.25% 0.25% • The quarter benefited from $2.8 million of 0.20% C&I recoveries 0.15%  2020 NCOs of $18.3 million, or 0.17% of 0.10% 0.09% average

  9. Slide 9: Higher-Risk Loan Trends

    Higher-Risk Loan Trends Loan Deferrals  Non performing assets declined by $5.8 15.9% 16.0% million during the quarter and stand at $2,000 14.0% 0.48% of total loans $1,850 12.0% $1,500 10.0%  Substandard, but still accruing, were flat 8.0% quarter over quarter as a % of total loans $1,000 6.0%  S

  10. Slide 10: ACL Walk-Forward

    ACL Walk-Forward $1,028 $305 147,568 ($1,832) ($428) ($11,049) 135,592 ($000) 4Q20 ACL Loan Growth Reserve for NCOs Specific Reserve Model / Forecast 1Q21 ACL Unfunded Changes Commitments ACL / Loans: 1.30% 1.16% ACL / Loans 1.38% 1.26% excl. PPP: 10

  11. Slide 11: Capital Ratios

    Capital Ratios 4Q20 KRX Peer UCBI Holding Company 1Q20 3Q20 4Q20 1Q21* Median vs. KRX Common Equity Tier 1 Capital 12.9 % 12.3 % 12.3 % 11.8 % + 0.5 % 12.4 % Tier 1 Risk-Based Capital 13.1 13.1 13.1 12.1 + 1.0 13.2 Total Risk-Based Capital 14.9 15.3 15.2 14.3 + 0.9 15.0 Leverage 10.4 9.4 9.3 8.9 + 0

  12. Slide 12: Net Interest Revenue / Margin

    (1) Net Interest Revenue / Margin $ in millions $145.4 $132.1 3.55% (0.04%) (0.03%) (0.05%) $118.6 (0.21%) 3.22% (%) 4.07% 3.55% 3.22% 1Q20 4Q20 1Q21 4Q NIM Excess Low Interest Purchased Loan PPP Fees 1Q NIM Liquidity Rates / Other Accretion Net Interest Revenue ($ in millions) (1) 1Q21 NIM Compress

  13. Slide 13: Valuable Deposit Mix

    Valuable Deposit Mix 1Q21 Total Deposits $16.0 billion 1Q21 Highlights Time  Total deposits were up $761 million, or 20% annualized 10% from 4Q20 and up $5.0 billion, or 45% YOY Savings 7% • Excluding Seaside, total deposits were up $3.2 billion, or DDA 29% YOY 38%  Core transaction deposits were

  14. Slide 14: Noninterest Income

    Noninterest Income $ in millions Linked Quarter $44.7 $1.0  Fees up $3.3 million $41.4 • Mortgage fees up $3.6 million from 4Q20 $1.5 primarily due to the positive impact of rising interest rates on the MSR asset • Rate locks were up with $993 million in 1Q21 $22.6 compared to $792 million in 4Q20

  15. Slide 15: Disciplined Expense Management

    Disciplined Expense Management $ in millions Linked Quarter $106.5 $104.0  GAAP and operating expenses decreased 11% and 10%, respectively $95.2 $93.7 • Salaries and benefits were down $1.2 million mainly due to $1.8 million of Paid Time Off hours accrued in 4Q20 as a result of COVID $81.5 $80.7 •

  16. Slide 16: PPP Update

    PPP Update PPP Totals ($ in millions) First & Second Round $335 $982 Third Round $518 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 Not Forgiven Forgiven  As of March 31st, approximately 75% of our first and second round PPP loans, representing $982 million in loans, have been forgiven by the SBA  I

  17. Slide 17: Exhibits

    1Q21 INVESTOR PRESENTATION Exhibits

  18. Slide 18: Selected Segments – Hotels

    Selected Segments – Hotels Top 50 Hotels by Sector Top 50 Hotel Risk Rating $ in millions Airport Leisure Conference 9.5% 13.3% Center 3.1% $43 $48 Extended Stay 10.6% $77 $68 29.4% $159 $172 Urban, Limited Service 34.1% Interstate, Limited Service 4Q20 1Q21 Pass Special Mention Substandard Accruing

  19. Slide 19: Selected Segments – Senior Care

    Selected Segments – Senior Care Senior Care by Project Type Skilled Nursing Senior Care lending team are 11.9% Facility dedicated specialists with significant 1% Memory Care 6% experience in the space 20% 10.7% Senior Care funded exposure for UCBI 6.4% Independent Living totaled $535 million as of

  20. Slide 20: Credit Quality — Navitas

    Credit Quality — Navitas Net Charge-Offs as % of Average Loans 0.93% 0.89% 0.87% 0.84% 0.81% 0.75% 0.67% 0.70% 0.58% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21  Navitas 1Q21 NCOs = 0.70%  Navitas’ cumulative net loss rates have approximated 2% for the last 10 years  Navitas ACL - Loans equated

  21. Slide 21: Expanding Mortgage Throughout the Footprint

    Expanding Mortgage Throughout the Footprint Mortgage Locks $993 $1,000 $910 30 $801 $802 $792 Funded Locks / MLO Mortgage Locks ($) $800 25 25 25 24 24 20 $508 $411 $600 $390 15 $400 $312 17 15 15 10 13 $200 9 5 $0 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Mortgage Locks ($ millions) Funded Loc

  22. Slide 22: Non-GAAP Reconciliation Tables

    22 Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q20 2Q20 3Q20 4Q20 1Q21 Expenses Expenses - GAAP $ 81,538 $ 83,980 $ 95,981 $ 106,490 $ 95,194 Merger-related and other charges (808) (397) (3,361) (2,452) (1,543) Expenses - Operating $ 80,730 $ 83,583 $ 92,620 $ 104,038 $ 93,

  23. Slide 23: Non-GAAP Reconciliation Tables

    23 Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q20 2Q20 3Q20 4Q20 1Q21 Return on Assets Return on assets - GAAP 0.99 % 0.71 % 1.07 % 1.30 % 1.62 % Merger-related and other charges 0.02 0.01 0.07 0.04 0.03 Return on assets - Operating 1.01 % 0.72 % 1.14 % 1.34 % 1.65 % Retur

  24. Slide 24: Glossary

    24 Glossary ACL – Allowance for Credit Losses MSA – Metropolitan Statistical Area ALLL – Allowance for Loan Losses MSR – Mortgage Servicing Rights Asset AUA – Assets Under Administration NCO – Net Charge-Offs BPS – Basis Points NIM – Net Interest Margin C&I – Commercial and Industrial NPA – Non-Perf

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