For Immediate Release
For more information: Jefferson Harralson Chief Financial Officer (864) 240-6208Jefferson_Harralson@ucbi.com
United Community Banks, Inc. Reports Second Quarter Earnings
Strong Loan Growth, Sixth Consecutive Quarter of Margin Expansion, and Focus on Core Banking Business Drive Quarterly ResultsGREENVILLE, SC - July 21, 2026 - United Community Banks, Inc. (NYSE: UCB) (United) today announced financial results for the quarter ended June 30, 2026, with strong spread income driven by 6.8% annualized loan growth and margin expansion for the sixth consecutive quarter.
Chairman and CEO Lynn Harton stated, "Our second quarter results reflect strong loan growth and a strategic emphasis on our core banking business. Our loan portfolio grew $332 million in the second quarter, an annualized rate of 6.8%, reflecting the demographic strength of our geographic footprint and the diligence of our bankers. Excluding the sale of our Navitas equipment finance business, which is expected to close in the third quarter, per a previously announced agreement, we had over $1 billion in loan production and grew loans 6.4%, annualized. We further widened our net interest margin, which is up for the sixth consecutive quarter, while maintaining our focus on disciplined relationship pricing."
Harton continued, "We've recently announced the acquisition of Peach State Bank and the sale of Navitas, two strategic actions that I'm confident will be catalysts to the opportunities United has to expand and deepen relationships in the Southeast, one of the best footprints in banking. These transactions strengthen our ability to focus on our core business and position us for greater long-term success."
Second Quarter 2026 Financial Highlights:
EPS of $0.95 was up $0.32 on a GAAP basis compared to second quarter of 2025, and EPS of $0.71 was up $0.05, or 8%, on an operating basis compared to second quarter of 2025.
GAAP EPS included a $38.5 million pre-tax provision release resulting from the reclassification of Navitas equipment finance loans to held-for-sale in the second quarter, pursuant to a previously announced agreement, which is expected to close in the third quarter of 2026.
Net income of $115.6 million and pre-tax, pre-provision income of $119.4 million, up $36.9 million and
$7.0 million, respectively, from a year ago.
Total revenue of $279.3 million improved $19.0 million, or 7%, from a year ago.
Net interest margin of 3.68% increased by 18 basis points from a year ago and 3 basis points from the first quarter of 2026. The improvement from a year ago results from a lower cost of funds and improving asset mix.
Provision for credit losses was a negative $29.8 million, reflecting the $38.5 million release of the allowance on the Navitas loans that were reclassified to held-for-sale.
Excluding the release, the provision was $8.7 million, down $3.1 million from a year ago and $2.2 million from the first quarter.
Allowance for credit losses coverage was 1.04% of total loans; net charge-offs were $7.9 million, or 0.16% of average loans, annualized. Second quarter net charge-offs include $3.7 million on the Navitas portfolio.
Noninterest expense was up $2.6 million on a GAAP basis and up $7.4 million on an operating basis compared to the first quarter.
Included in noninterest expense is a settlement payment to the State of California to obtain a lender's license for Navitas. Navitas previously held a California lender's license; however, after being acquired by United, Navitas believed that, as a bank subsidiary, they were no longer required to hold a license. The matter has been closed and license obtained. United incurred a
$4.5 million expense in the second quarter, representing a payment to the California Department of Financial Protection and Innovation (DFPI) and our associated legal fees.
Efficiency ratio of 57.0% on a GAAP basis, or 56.7% on an operating basis, up slightly from a year ago and first quarter mostly due to the Navitas California license settlement.
Loan growth of $332 million, or 6.8% annualized, from the first quarter.
Customer deposits were down $295 million from the first quarter, mostly due to seasonal public funds outflows.
Return on assets was 1.63% on a GAAP basis and 1.22% on an operating basis.
Return on common equity and return on tangible common equity on an operating basis were 12.6% and 13.0%, respectively.
Maintained strong capital ratios with preliminary Common Equity Tier 1 of 13.5%.
Quarterly common dividend of $0.25 per share declared during the quarter, up 4% year over year.
Conference Call
United will hold a conference call on Tuesday, July 21, 2026 at 9:00 a.m. EDT 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/10209320/1040bcbbd98. Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. 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)
2026 2025 Second Quarter YTD For the Six Months Ended June 30,2026 - 2026 -
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2025 Change 2026 2025 2025 ChangeINCOME SUMMARY | |||||||||
Interest revenue | $ 344,371 | $ 333,961 $ 346,367 $ 353,850 $ 347,365 | $ 678,332 | $ 682,722 | |||||
Interest expense | 103,471 | 101,197 108,441 120,221 121,834 | 204,668 | 245,170 | |||||
Net interest revenue | 240,900 | 232,764 237,926 233,629 225,531 | 7 % | 473,664 | 437,552 | 8 % | |||
Noninterest income | 38,380 | 43,746 40,462 43,219 34,708 | 11 | 82,126 | 70,364 | 17 | |||
Total revenue | 279,280 | 276,510 278,388 276,848 260,239 | 7 | 555,790 | 507,916 | 9 | |||
Provision for credit losses | (29,803) | 10,853 13,662 7,907 11,818 | n/m | (18,950) | 27,237 | n/m | |||
Noninterest expense | 159,915 | 157,302 152,048 150,868 147,919 | 8 | 317,217 | 289,018 | 10 | |||
Income before income tax expense | 149,168 | 108,355 112,678 118,073 100,502 | 48 | 257,523 | 191,661 | 34 | |||
Income tax expense | 33,530 | 24,066 26,223 26,579 21,769 | 54 | 57,596 | 41,515 | 39 | |||
Net income | 115,638 | 84,289 86,455 91,494 78,733 | 47 | 199,927 | 150,146 | 33 | |||
Non-operating items | (37,582) | 508 606 3,468 4,833 | (37,074) | 6,130 | |||||
Income tax benefit of non-operating items | 8,347 | (113) (133) (751) (1,047) | 8,234 | (1,328) | |||||
Net income - operating (1) | $ 86,403 | $ 84,684 $ 86,928 $ 94,211 $ 82,519 | 5 | $ 171,087 | $ 154,948 | 10 | |||
Pre-tax pre-provision income (5) | $ 119,365 | $ 119,208 $ 126,340 $ 125,980 $ 112,320 | 6 | $ 238,573 | $ 218,898 | 9 | |||
PERFORMANCE MEASURES | |||||||||
Per common share: | |||||||||
Diluted net income - GAAP | $ 0.95 | $ 0.69 $ 0.70 $ 0.70 $ 0.63 | 51 | $ 1.65 | $ 1.21 | 36 | |||
Diluted net income - operating (1) | 0.71 | 0.70 0.71 0.75 0.66 | 8 | 1.41 | 1.25 | 13 | |||
Cash dividends declared | 0.25 | 0.25 0.25 0.25 0.24 | 4 | 0.50 | 0.48 | 4 | |||
Book value | 31.27 | 30.54 30.17 29.44 28.89 | 8 | 31.27 | 28.89 | 8 | |||
Tangible book value (3) | 23.31 | 22.56 22.24 21.59 21.00 | 11 | 23.31 | 21.00 | 11 | |||
Key performance ratios: | |||||||||
Return on common equity - GAAP (2)(4) | 12.56 % | 9.35 % 9.48 % 9.20 % 8.45 % | 10.97 % | 8.18 % | |||||
Return on common equity - operating (1)(2)(4) | 9.39 | 9.39 9.53 9.83 8.87 | 9.39 | 8.45 | |||||
Return on tangible common equity - | 12.98 | 13.05 13.31 13.56 12.34 | 13.02 | 11.78 | |||||
Return on assets - GAAP (4) | 1.63 | 1.22 1.21 1.29 1.11 | 1.43 | 1.06 | |||||
Return on assets - operating (1)(4) | 1.22 | 1.22 1.22 1.33 1.16 | 1.22 | 1.10 | |||||
Return on assets - pre-tax pre-provision, | |||||||||
excluding non-operating items(1)(4)(5) | 1.70 | 1.73 | 1.78 | 1.83 | 1.66 | 1.71 | 1.61 | ||
Net interest margin (fully taxable equivalent) | |||||||||
(4) | 3.68 | 3.65 | 3.62 | 3.58 | 3.50 | 3.66 | 3.43 | ||
Efficiency ratio - GAAP | 57.01 | 56.66 | 54.40 | 54.30 | 56.69 | 56.84 | 56.71 | ||
Efficiency ratio - operating (1) | 56.69 | 55.65 | 54.19 | 53.05 | 54.84 | 56.18 | 55.51 | ||
Equity to total assets | 12.89 | 12.97 | 12.99 | 12.78 | 12.86 | 12.89 | 12.86 | ||
Tangible common equity to tangible assets (3) | 9.94 | 9.92 | 9.92 | 9.71 | 9.45 | 9.94 | 9.45 | ||
ASSET QUALITY | |||||||||
Nonperforming assets ("NPAs") | $103,387 | $ 98,623 | $ 93,498 | $ 97,916 | $ 83,959 | 23 | $103,387 | $ 83,959 | 23 |
ACL - funded loans | 168,705 | 208,396 | 210,429 | 215,791 | 216,500 | (22) | 168,705 | 216,500 | (22) |
ACL - total | 188,329 | 225,996 | 225,520 | 228,276 | 228,045 | (17) | 188,329 | 228,045 | (17) |
Net charge-offs | 7,864 | 10,377 | 16,418 | 7,676 | 8,225 | (4) | 18,241 | 17,832 | 2 |
ACL - funded loans to loans | 0.94 % | 1.06 % | 1.09 % | 1.13 % | 1.14 % | 0.94 % | 1.14 % | ||
ACL - total to loans | 1.04 | 1.15 | 1.16 | 1.19 | 1.21 | 1.04 | 1.21 | ||
Net charge-offs to average loans (4) | 0.16 | 0.22 | 0.34 | 0.16 | 0.18 | 0.19 | 0.20 | ||
NPAs to total assets | 0.36 | 0.35 | 0.33 | 0.35 | 0.30 | 0.36 | 0.30 | ||
AT PERIOD END ($ in millions) | |||||||||
Loans held for investment | $ 18,024 | $ 19,602 | $ 19,384 | $ 19,175 | $ 18,921 | (5) | $ 18,024 | $ 18,921 | (5) |
Investment securities | 6,377 | 5,889 | 5,988 | 6,163 | 6,382 | - | 6,377 | 6,382 | - |
Total assets | 29,051 | 28,177 | 28,003 | 28,143 | 28,086 | 3 | 29,051 | 28,086 | 3 |
Deposits | 23,724 | 24,025 | 23,798 | 24,021 | 23,963 | (1) | 23,724 | 23,963 | (1) |
Shareholders' equity | 3,745 | 3,655 | 3,639 | 3,597 | 3,613 | 4 | 3,745 | 3,613 | 4 |
Common shares outstanding (thousands) | 119,764 | 119,684 | 120,598 | 121,553 | 121,431 | (1) | 119,764 | 121,431 | (1) |
operating (1)(2)(3)(4)
(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation. (2) Net income less preferred stock dividends, divided by average common equity. (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. Loan Portfolio Composition at Period-End 2026 2025 Linked Year overSecond (in millions) Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | Quarter Change | Year Change | |
LOANS BY CATEGORY | |||||||
Owner occupied commercial RE | $ 4,117 | $ 4,041 | $ 3,950 | $ 3,678 | $ 3,563 | $ 76 | $ 554 |
Income producing commercial RE | 5,018 | 4,984 | 5,032 | 4,534 | 4,548 | 34 | 470 |
Commercial & industrial (1) | 2,859 | 2,771 | 2,696 | 2,593 | 2,516 | 88 | 343 |
Commercial construction & land | 1,143 | 1,072 | 998 | 1,734 | 1,752 | 71 | (609) |
Equipment financing (1) | - | 1,897 | 1,848 | 1,808 | 1,778 | (1,897) | (1,778) |
Total commercial | 13,137 | 14,765 | 14,524 | 14,347 | 14,157 | (1,628) | (1,020) |
Residential mortgage | 3,101 | 3,122 | 3,157 | 3,198 | 3,210 | (21) | (109) |
Home equity | 1,403 | 1,344 | 1,319 | 1,252 | 1,180 | 59 | 223 |
Residential construction & land | 195 | 185 | 191 | 178 | 174 | 10 | 21 |
Consumer | 193 | 187 | 188 | 192 | 191 | 6 | 2 |
Other | (5) | (1) | 5 | 8 | 9 | (4) | (14) |
Total loans held for investment | $ 18,024 | $ 19,602 | $ 19,384 | $ 19,175 | $ 18,921 | $ (1,578) | $ (897) |
LOANS BY MARKET | |||||||
Georgia | $ 4,662 | $ 4,617 | $ 4,635 | $ 4,584 | $ 4,551 | $ 45 | $ 111 |
South Carolina | 3,130 | 3,037 | 2,971 | 2,926 | 2,872 | 93 | 258 |
North Carolina | 2,706 | 2,722 | 2,712 | 2,676 | 2,626 | (16) | 80 |
Tennessee | 1,962 | 1,895 | 1,913 | 1,902 | 1,881 | 67 | 81 |
Florida | 3,283 | 3,229 | 3,102 | 3,040 | 2,966 | 54 | 317 |
Alabama | 1,082 | 1,049 | 1,050 | 1,054 | 1,016 | 33 | 66 |
Commercial Banking Solutions (2) | 1,199 | 3,053 | 3,001 | 2,993 | 3,009 | (1,854) | (1,810) |
Total loans held for investment | $ 18,024 | $ 19,602 | $ 19,384 | $ 19,175 | $ 18,921 | $ (1,578) | $ (897) |
(1) Substantially all equipment financing loans were transferred to held for sale in the second quarter of 2026 as a result of the pending sale of Navitas Credit Corp. The remaining $35.9 million to be retained were reclassified to the commercial & industrial line as equipment financing no longer represents a significant held-for-investment category at June 30, 2026.
(2) Reduction in the second quarter of 2026 reflects the transfer of substantially all equipment financing loans to held for sale.
UNITED COMMUNITY BANKS, INC. Credit Quality(in thousands)
2026 2025 Second Quarter First Quarter Fourth QuarterNONACCRUAL LOANS | |||
Owner occupied RE | $ 20,027 | $ 18,265 | $ 11,165 |
Income producing RE | 11,655 | 11,037 | 11,488 |
Commercial & industrial | 21,147 | 19,890 | 18,294 |
Commercial construction & land | 916 | 17 | 18 |
Equipment financing (1) | - | 8,024 | 10,383 |
Total commercial | 53,745 | 57,233 | 51,348 |
Residential mortgage | 30,506 | 31,906 | 32,423 |
Home equity | 6,435 | 6,209 | 5,247 |
Residential construction & land | 338 | 355 | 1,079 |
Consumer | 977 | 1,009 | 1,001 |
Total nonaccrual loans held for investment | 92,001 | 96,712 | 91,098 |
Equipment finance nonaccrual loans held for sale (1) | 9,392 | - | - |
OREO and repossessed assets | 1,994 | 1,911 | 2,400 |
Total NPAs | $ 103,387 | $ 98,623 | $ 93,498 |
(1) Substantially all equipment financing loans were transferred to held for sale in the second quarter of 2026 as a result of the pending sale of Navitas Credit Corp.
2026 2025 Second Quarter First Quarter Fourth 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 | $ (3,447) | (0.34)% | $ 666 | 0.07 % | $ 1,610 | 0.17 % |
Income producing RE | 57 | - | (85) | (0.01) | (116) | (0.01) |
Commercial & industrial | 6,859 | 0.97 | 3,309 | 0.50 | 7,557 | 1.15 |
Commercial construction & land | (22) | (0.01) | 6 | - | 1,484 | 0.35 |
Equipment financing | 3,697 | 0.78 | 5,835 | 1.29 | 5,092 | 1.12 |
Total commercial | 7,144 | 0.19 | 9,731 | 0.27 | 15,627 | 0.43 |
Residential mortgage | 57 | 0.01 | 133 | 0.02 | 126 | 0.02 |
Home equity | (24) | (0.01) | (54) | (0.02) | (94) | (0.03) |
Residential construction & land | (6) | (0.01) | 12 | 0.03 | 16 | 0.03 |
Consumer | 693 | 1.47 | 555 | 1.21 | 743 | 1.55 |
Total | $ 7,864 | 0.16 | $ 10,377 | 0.22 | $ 16,418 | 0.34 |
(1) Annualized.
UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited) June 30, December 31,(in thousands, except share and per share data) | 2026 | 2025 |
ASSETS | ||
Cash and due from banks | $ 129,113 | $ 202,586 |
Interest-bearing deposits in banks | 325,984 | 193,168 |
Cash and cash equivalents | 455,097 | 395,754 |
Trading securities | 91,377 | - |
Debt securities available-for-sale | 4,106,366 | 3,750,863 |
Debt securities held-to-maturity (fair value $1,848,900 and $1,918,426, respectively) | 2,179,043 | 2,237,356 |
Mortgage loans held for sale | 53,518 | 39,381 |
Equipment financing receivables held for sale | 1,909,186 | - |
Loans and leases held for investment | 18,024,130 | 19,384,317 |
Less allowance for credit losses - loans and leases | (168,705) | (210,429) |
Loans and leases, net | 17,855,425 | 19,173,888 |
Premises and equipment, net | 394,343 | 393,714 |
Bank-owned life insurance | 367,506 | 364,184 |
Goodwill and other intangible assets, net | 961,881 | 967,882 |
Other assets | 677,400 | 679,532 |
Total assets | $ 29,051,142 | $ 28,002,554 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Liabilities: | ||
Deposits: | ||
Noninterest-bearing demand | $ 6,449,517 | $ 6,252,252 |
NOW and interest-bearing demand | 5,677,423 | 5,969,864 |
Money market | 6,678,206 | 6,696,530 |
Savings | 1,094,565 | 1,085,331 |
Time | 3,665,862 | 3,619,189 |
Brokered | 158,636 | 175,264 |
Total deposits | 23,724,209 | 23,798,430 |
Short-term borrowings | 360,000 | 85,000 |
Federal Home Loan Bank advances | 800,000 | - |
Long-term debt | 20,602 | 120,400 |
Accrued expense and other liabilities | 401,327 | 360,038 |
Total liabilities | 25,306,138 | 24,363,868 |
Shareholders' equity: | ||
Common stock, $1 par value; 200,000,000 shares authorized, 119,763,827 and 120,598,266 shares issued and outstanding, respectively | 119,764 | 120,598 |
Capital surplus | 2,724,530 | 2,754,399 |
Retained earnings | 1,053,438 | 914,261 |
Accumulated other comprehensive loss | (152,728) | (150,572) |
Total shareholders' equity | 3,745,004 | 3,638,686 |
Total liabilities and shareholders' equity | $ 29,051,142 | $ 28,002,554 |
(in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 |
Interest revenue: | ||||
Loans, including fees | $ 295,612 | $ 288,284 | $ 581,689 | $ 562,340 |
Securities: | ||||
Taxable | 44,647 | 54,191 | 89,130 | 111,363 |
Tax-exempt | 1,671 | 1,671 | 3,317 | 3,349 |
Other | 2,441 | 3,219 | 4,196 | 5,670 |
Total interest revenue | 344,371 | 347,365 | 678,332 | 682,722 |
Interest expense: | ||||
Deposits: | ||||
NOW and interest-bearing demand | 28,118 | 36,956 | 56,247 | 74,346 |
Money market | 41,140 | 49,603 | 81,849 | 99,144 |
Savings | 483 | 1,457 | 963 | 2,081 |
Time | 28,362 | 31,120 | 57,073 | 62,499 |
Deposits | 98,103 | 119,136 | 196,132 | 238,070 |
Short-term borrowings | 1,553 | 83 | 2,551 | 1,190 |
Federal Home Loan Bank advances | 3,014 | - | 3,983 | 433 |
Long-term debt | 801 | 2,615 | 2,002 | 5,477 |
Total interest expense | 103,471 | 121,834 | 204,668 | 245,170 |
Net interest revenue | 240,900 | 225,531 | 473,664 | 437,552 |
Noninterest income: | ||||
Service charges and fees | 10,375 | 10,122 | 19,920 | 19,657 |
Mortgage loan gains and other related fees | 6,780 | 5,370 | 14,809 | 11,492 |
Wealth management fees | 4,932 | 4,400 | 9,561 | 8,865 |
Net gains from sales of other loans | 947 | 1,995 | 2,840 | 3,391 |
Lending and loan servicing fees | 4,098 | 3,690 | 8,069 | 7,855 |
Securities (losses) gains, net | (2) | 286 | 131 | 292 |
Other | 11,250 | 8,845 | 26,796 | 18,812 |
Total noninterest income | 38,380 | 34,708 | 82,126 | 70,364 |
Total revenue | 279,280 | 260,239 | 555,790 | 507,916 |
Provision for credit losses | (29,803) | 11,818 | (18,950) | 27,237 |
Noninterest expense: | ||||
Salaries and employee benefits | 96,242 | 86,997 | 197,491 | 171,264 |
Communications and equipment | 13,743 | 13,332 | 27,845 | 27,031 |
Occupancy | 11,232 | 10,935 | 22,957 | 21,864 |
Advertising and public relations | 2,708 | 2,881 | 5,105 | 4,762 |
Postage, printing and supplies | 2,744 | 2,495 | 5,501 | 5,056 |
Professional fees | 6,868 | 5,609 | 12,444 | 11,540 |
Lending and loan servicing expense | 3,105 | 2,330 | 5,687 | 4,317 |
Outside services - electronic banking | 3,555 | 3,570 | 7,114 | 6,333 |
FDIC assessments and other regulatory charges | 4,327 | 4,745 | 6,596 | 9,387 |
Amortization of intangibles | 2,938 | 3,292 | 6,001 | 6,578 |
Merger-related and other charges | 895 | 4,833 | 1,768 | 6,130 |
Other | 11,558 | 6,900 | 18,708 | 14,756 |
Total noninterest expense | 159,915 | 147,919 | 317,217 | 289,018 |
Income before income taxes | 149,168 | 100,502 | 257,523 | 191,661 |
Income tax expense | 33,530 | 21,769 | 57,596 | 41,515 |
Net income | 115,638 | 78,733 | 199,927 | 150,146 |
Preferred stock dividends | - | 1,573 | - | 3,146 |
Earnings allocated to participating securities | 758 | 438 | 1,309 | 850 |
Net income available to common shareholders | $ 114,880 | $ 76,722 | $ 198,618 | $ 146,150 |
Net income per common share: | ||||
Basic | $ 0.95 | $ 0.63 | $ 1.65 | $ 1.21 |
Diluted | 0.95 | 0.63 | 1.65 | 1.21 |
Weighted average common shares outstanding: | ||||
Basic | 120,303 | 121,377 | 120,400 | 120,714 |
Diluted | 120,442 | 121,432 | 120,583 | 120,820 |
For the Three Months Ended June 30,
2026 2025(dollars in thousands, fully taxable equivalent (FTE))
Assets: Average Balance Interest Average Rate Average Balance Interest Average RateInterest-earning assets: | ||||||
Loans, net of unearned income (FTE) (1)(2) | $ 19,717,360 | $ 296,278 | 6.03 % | $ 18,664,228 | $ 288,023 | 6.19 % |
Taxable securities (3) | 5,982,611 | 44,647 | 2.99 | 6,492,288 | 54,191 | 3.34 |
Tax-exempt securities (FTE) (1)(3) | 340,501 | 2,226 | 2.61 | 354,162 | 2,236 | 2.53 |
Other interest-earning assets | 358,914 | 2,441 | 2.73 | 451,953 | 3,898 | 3.46 |
Total interest-earning assets (FTE) | 26,399,386 | 345,592 | 5.25 | 25,962,631 | 348,348 | 5.38 |
Noninterest-earning assets: | ||||||
Allowance for credit losses | (214,950) | (220,059) | ||||
Cash and due from banks | 149,512 | 203,909 | ||||
Premises and equipment | 395,986 | 398,241 | ||||
Other assets (3) | 1,681,658 | 1,637,125 | ||||
Total assets | $ 28,411,592 | $ 27,981,847 | ||||
Interest-bearing deposits: | ||||||
NOW and interest-bearing demand | $ 5,755,001 | 28,118 | 1.96 | $ 6,051,489 | 36,956 | 2.45 |
Money market | 6,786,045 | 41,140 | 2.43 | 6,645,336 | 49,603 | 2.99 |
Savings | 1,094,441 | 483 | 0.18 | 1,195,295 | 1,457 | 0.49 |
Time | 3,661,687 | 27,955 | 3.06 | 3,532,848 | 30,596 | 3.47 |
Brokered time deposits | 50,655 | 407 | 3.22 | 50,488 | 524 | 4.16 |
Total interest-bearing deposits | 17,347,829 | 98,103 | 2.27 | 17,475,456 | 119,136 | 2.73 |
Federal funds purchased and other borrowings | 167,718 | 1,553 | 3.71 | 7,412 | 83 | 4.49 |
Federal Home Loan Bank advances | 313,791 | 3,014 | 3.85 | - | - | - |
Long-term debt | 52,420 | 801 | 6.13 | 237,992 | 2,615 | 4.41 |
Total borrowed funds | 533,929 | 5,368 | 4.03 | 245,404 | 2,698 | 4.41 |
Total interest-bearing liabilities | 17,881,758 | 103,471 | 2.32 | 17,720,860 | 121,834 | 2.76 |
Noninterest-bearing liabilities: | ||||||
Noninterest-bearing deposits | 6,422,393 | 6,351,540 | ||||
Other liabilities | 415,721 | 346,643 | ||||
Total liabilities | 24,719,872 | 24,419,043 | ||||
Shareholders' equity | 3,691,720 | 3,562,804 | ||||
Total liabilities and shareholders' equity | $ 28,411,592 | $ 27,981,847 | ||||
Interest-bearing liabilities:
Net interest-rate spread (FTE)
2.93 %
2.62 %
Net interest margin (FTE) (4) 3.68 % 3.50 %
Net interest revenue (FTE) $ 242,121 $ 226,514Liabilities and Shareholders' Equity:
(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 $1.22 million and $983,000, respectively, for the three months ended June 30, 2026 and 2025. The tax rate used to calculate the adjustment was 25%, 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.
(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 $191 million in 2026 and $240 million in 2025 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.
UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest AnalysisFor the Six Months Ended June 30,
2026 2025(dollars in thousands, fully taxable equivalent (FTE))
Assets: Average Balance Interest Average Rate Average Balance Interest Average RateInterest-earning assets: | ||||||
Loans, net of unearned income (FTE) (1)(2) | $ 19,561,444 | $ 582,907 | 6.01 % | $ 18,440,110 | $ 561,953 | 6.15 % |
Taxable securities (3) | 5,954,901 | 89,130 | 2.99 | 6,614,294 | 111,363 | 3.37 |
Tax-exempt securities (FTE) (1)(3) | 343,445 | 4,428 | 2.58 | 355,430 | 4,481 | 2.52 |
Other interest-earning assets | 333,809 | 4,196 | 2.53 | 426,415 | 6,899 | 3.26 |
Total interest-earning assets (FTE) | 26,193,599 | 680,661 | 5.23 | 25,836,249 | 684,696 | 5.34 |
Non-interest-earning assets: | ||||||
Allowance for loan losses | (213,914) | (215,141) | ||||
Cash and due from banks | 174,659 | 211,681 | ||||
Premises and equipment | 394,925 | 397,347 | ||||
Other assets (3) | 1,693,548 | 1,623,689 | ||||
Total assets | $ 28,242,817 | $ 27,853,825 | ||||
Interest-bearing deposits: | ||||||
NOW and interest-bearing demand | $ 5,803,781 | 56,247 | 1.95 | $ 6,092,519 | 74,346 | 2.46 |
Money market | 6,806,264 | 81,849 | 2.43 | 6,614,819 | 99,144 | 3.02 |
Savings | 1,092,161 | 963 | 0.18 | 1,146,075 | 2,081 | 0.37 |
Time | 3,656,390 | 56,138 | 3.10 | 3,489,687 | 61,427 | 3.55 |
Brokered time deposits | 55,440 | 935 | 3.40 | 50,468 | 1,072 | 4.28 |
Total interest-bearing deposits | 17,414,036 | 196,132 | 2.27 | 17,393,568 | 238,070 | 2.76 |
Federal funds purchased and other borrowings | 137,858 | 2,551 | 3.73 | 43,883 | 1,190 | 5.47 |
Federal Home Loan Bank advances | 208,619 | 3,983 | 3.85 | 19,343 | 433 | 4.51 |
Long-term debt | 86,247 | 2,002 | 4.68 | 246,061 | 5,477 | 4.49 |
Total borrowed funds | 432,724 | 8,536 | 3.98 | 309,287 | 7,100 | 4.63 |
Total interest-bearing liabilities | 17,846,760 | 204,668 | 2.31 | 17,702,855 | 245,170 | 2.79 |
Noninterest-bearing liabilities: | ||||||
Noninterest-bearing deposits | 6,344,315 | 6,273,313 | ||||
Other liabilities | 376,882 | 358,227 | ||||
Total liabilities | 24,567,957 | 24,334,395 | ||||
Shareholders' equity | 3,674,860 | 3,519,430 | ||||
Total liabilities and shareholders' equity | $ 28,242,817 | $ 27,853,825 | ||||
Interest-bearing liabilities:
Net interest-rate spread (FTE)
2.92 %
2.55 %
Net interest margin (FTE) (4) 3.66 % 3.43 %
Net interest revenue (FTE) $ 475,993 $ 439,526Liabilities and Shareholders' Equity:
(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 $2.33 million and $1.97 million, respectively, for the six months ended June 30, 2026 and 2025. The tax rate used to calculate the adjustment was 25%, 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 $183 million in 2026 and $254 million in 2025 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.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation Selected Financial Information
(in thousands, except per share data)
Book value per common share reconciliation | ||||||||
Book value per common share (GAAP) | $ 31.27 | $ 30.54 | $ 30.17 | $ 29.44 | $ 28.89 | $ 31.27 | $ 28.89 | |
Effect of goodwill and other intangibles | (7.96) | (7.98) | (7.93) | (7.85) | (7.89) | (7.96) | (7.89) | |
Tangible book value per common share | $ 23.31 $ 22.56 $ 22.24 $ 21.59 $ 21.00 $ 23.31 | $ | 21.00 | |||||
2026 2025
For the Six Months Ended June 30,
Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2026 | 2025 | ||
Noninterest income reconciliation | ||||||||
Noninterest income (GAAP) | $ 38,380 | $ | 43,746 | $ 40,462 | $ 43,219 | $ 34,708 | $ 82,126 | $ 70,364 |
Gain on terminated cash flow hedge | - | (5,184) | - | - | - | (5,184) | - | |
Noninterest income - operating $ 38,380 $ 38,562 $ 40,462 $ 43,219 $ 34,708 $ 76,942 $ 70,364 | ||||||||
Provision for credit losses reconciliation | ||||||||
Provision for credit losses (GAAP) | $ (29,803) | $ 10,853 | $ 13,662 | $ 7,907 | $ 11,818 | $ (18,950) | $ 27,237 | |
Release of ACL on equipment finance loans | 38,477 | - | - | - | - | 38,477 | - | |
Provision for credit losses - operating $ 8,674 $ 10,853 $ 13,662 $ 7,907 $ 11,818 $ 19,527 $ 27,237 | ||||||||
Noninterest expense reconciliation | ||||||||
Noninterest expense (GAAP) | $ 159,915 | $ 157,302 | $ 152,048 | $ 150,868 | $ 147,919 | $ 317,217 | $ 289,018 | |
Payroll transition bonus | - | (6,704) | - | - | - | (6,704) | - | |
FDIC special assessment accrual reversal | - | 1,885 | - | - | - | 1,885 | - | |
Merger-related and other charges | (895) | (873) | (606) | (3,468) | (4,833) | (1,768) | (6,130) | |
Noninterest expense - operating | $ 159,020 $ 151,610 $ 151,442 $ 147,400 $ 143,086 $ 310,630 | $ | 282,888 | |||||
Net income to operating income reconciliation | ||||||||
Net income (GAAP) | $ 115,638 | $ 84,289 | $ 86,455 | $ 91,494 | $ 78,733 | $ 199,927 | $ 150,146 | |
Gain on terminated cash flow hedge | - | (5,184) | - | - | - | (5,184) | - | |
Release of ACL on equipment finance loans | (38,477) | - | - | - | - | (38,477) | - | |
Payroll transition bonus | - | 6,704 | - | - | - | 6,704 | - | |
FDIC special assessment accrual reversal | - | (1,885) | - | - | - | (1,885) | - | |
Merger-related and other charges | 895 | 873 | 606 | 3,468 | 4,833 | 1,768 | 6,130 | |
Income tax benefit of non-operating items | 8,347 | (113) | (133) | (751) | (1,047) | 8,234 | (1,328) | |
Net income - operating | $ 86,403 $ 84,684 $ 86,928 $ 94,211 $ 82,519 $ 171,087 | $ | 154,948 | |||||
Net income to pre-tax pre-provision income reconciliation | ||||||||
Net income (GAAP) | $ 115,638 | $ 84,289 | $ 86,455 | $ 91,494 | $ 78,733 | $ 199,927 | $ 150,146 | |
Income tax expense | 33,530 | 24,066 | 26,223 | 26,579 | 21,769 | 57,596 | 41,515 | |
Provision for credit losses | (29,803) | 10,853 | 13,662 | 7,907 | 11,818 | (18,950) | 27,237 | |
Pre-tax pre-provision income | $ 119,365 $ 119,208 $ 126,340 $ 125,980 $ 112,320 $ 238,573 | $ | 218,898 | |||||
Diluted income per common share reconciliation | ||||||||
Diluted income per common share (GAAP) | $ 0.95 | $ 0.69 | $ 0.70 | $ 0.70 | $ 0.63 | $ 1.65 | $ 1.21 | |
Gain on terminated cash flow hedge | - | (0.03) | - | - | - | (0.03) | - | |
Release of ACL on equipment finance loans | (0.25) | - | - | - | - | (0.25) | - | |
Payroll transition bonus | - | 0.04 | - | - | - | 0.04 | - | |
FDIC special assessment accrual reversal | - | (0.01) | - | - | - | (0.01) | - | |
Merger-related and other charges | 0.01 | 0.01 | 0.01 | 0.02 | 0.03 | 0.01 | 0.04 | |
Deemed dividend on preferred stock redemption | - | - | - | 0.03 | - | - | - | |
Diluted income per common share - operating | $ 0.71 $ 0.70 $ 0.71 $ 0.75 $ 0.66 $ 1.41 | $ | 1.25 | |||||
Return on tangible common equity reconciliation | |||||||
Return on common equity (GAAP) | 12.56 % | 9.35 % | 9.48 % | 9.20 % | 8.45 % | 10.97 % | 8.18 % |
Gain on terminated cash flow hedge | - | (0.45) | - | - | - | (0.22) | - |
Release of ACL on equipment finance loans | (3.25) | - | - | - | - | (1.64) | - |
Payroll transition bonus | - | 0.58 | - | - | - | 0.29 | - |
FDIC special assessment accrual reversal | - | (0.16) | - | - | - | (0.08) | - |
Merger-related and other charges | 0.08 | 0.07 | 0.05 | 0.29 | 0.42 | 0.07 | 0.27 |
Deemed dividend on preferred stock redemption | - | - | - | 0.34 | - | - | - |
Return on common equity - operating | 9.39 | 9.39 | 9.53 | 9.83 | 8.87 | 9.39 | 8.45 |
Effect of goodwill and other intangibles | 3.59 | 3.66 | 3.78 | 3.73 | 3.47 | 3.63 | 3.33 |
Return on tangible common equity - operating 12.98 % 13.05 % 13.31 % 13.56 % 12.34 % 13.02 % 11.78 % | |||||||
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation Selected Financial Information
(in thousands, except per share data)
2026 2025
For the Six Months Ended June 30,
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Second
Quarter 2026 2025
Return on assets reconciliation | |||||||
Return on assets (GAAP) | 1.63 % | 1.22 % | 1.21 % | 1.29 % | 1.11 % | 1.43 % | 1.06 % |
Gain on terminated cash flow hedge | - | (0.06) | - | - | - | (0.03) | - |
Release of ACL on equipment finance loans | (0.42) | - | - | - | - | (0.21) | - |
Payroll transition bonus | - | 0.07 | - | - | - | 0.03 | - |
FDIC special assessment accrual reversal | - | (0.02) | - | - | - | (0.01) | - |
Merger-related and other charges | 0.01 | 0.01 | 0.01 | 0.04 | 0.05 | 0.01 | 0.04 |
Return on assets - operating 1.22 % 1.22 % 1.22 % 1.33 % 1.16 % 1.22 % 1.10 % | |||||||
Return on assets to return on assets- pre-tax pre-provision | |||||||
Return on assets (GAAP) | 1.63 % | 1.22 % | 1.21 % | 1.29 % | 1.11 % | 1.43 % | 1.06 % |
Income tax expense | 0.47 | 0.35 | 0.37 | 0.38 | 0.31 | 0.41 | 0.30 |
Provision for credit losses | (0.42) | 0.16 | 0.19 | 0.11 | 0.17 | (0.14) | 0.20 |
Gain on terminated cash flow hedge | - | (0.08) | - | - | - | (0.04) | - |
Payroll transition bonus | - | 0.10 | - | - | - | 0.05 | - |
FDIC special assessment accrual reversal | - | (0.03) | - | - | - | (0.01) | - |
Merger-related and other charges | 0.02 | 0.01 | 0.01 | 0.05 | 0.07 | 0.01 | 0.05 |
Return on assets - pre-tax pre-provision - operating 1.70 % 1.73 % 1.78 % 1.83 % 1.66 % 1.71 % 1.61 % | |||||||
reconciliation
Efficiency ratio reconciliation | |||||||
Efficiency ratio (GAAP) | 57.01 % | 56.66 % | 54.40 % | 54.30 % | 56.69 % | 56.84 % | 56.71 % |
Gain on terminated cash flow hedge | - | 1.03 | - | - | - | 0.52 | - |
Payroll transition bonus | - | (2.41) | - | - | - | (1.20) | - |
FDIC special assessment accrual reversal | - | 0.68 | - | - | - | 0.34 | - |
Merger-related and other charges | (0.32) | (0.31) | (0.21) | (1.25) | (1.85) | (0.32) | (1.20) |
Efficiency ratio - operating 56.69 % 55.65 % 54.19 % 53.05 % 54.84 % 56.18 % 55.51 % | |||||||
Tangible common equity to tangible assets reconciliation | |||||||
Equity to total assets (GAAP) | 12.89 % | 12.97 % | 12.99 % | 12.78 % | 12.86 % | 12.89 % | 12.86 % |
Effect of goodwill and other intangibles | (2.95) | (3.05) | (3.07) | (3.07) | (3.10) | (2.95) | (3.10) |
Effect of preferred equity | - | - | - | - | (0.31) | - | (0.31) |
Tangible common equity to tangible assets 9.94 % 9.92 % 9.92 % 9.71 % 9.45 % 9.94 % 9.45 % | |||||||
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 June 30, 2026, United Community Banks, Inc. had $29.1 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 an equipment finance subsidiary, extending its reach to businesses across the country. United Community is the most awarded bank in the Southeast for Retail Banking Customer Satisfaction by J.D. Power, earning more awards than any other bank in the region, including recognition in 12 of the last 17 years. The company has also been named one of the "Best Banks to Work For" by American Banker for nine consecutive years. In commercial banking, United Community earned multiple 2026 Greenwich Best Bank awards for Small Business Banking. Forbes has consistently named United Community 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", "provision for credit losses - 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. 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 financial benefits from the acquisition of Peach State Bancshares, Inc. ( "Peach State") or the sale of the Navitas equipment finance business ("Navitas") (each a "Transaction" and collectively, the "Transactions") may not be realized or take longer than anticipated to be realized, (2) disruption from the Transactions of customer, supplier,
employee or other business partner relationships, (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the Transaction agreements, (4) the possibility that the costs, fees, expenses and charges related to the Transactions may be greater than anticipated, (5) reputational risk and the reaction of each of the companies' customers, suppliers, employees or other business partners to the Transactions, (6) the failure of the closing conditions to the Transactions to be satisfied, or any unexpected delay in closing the Transactions, including due to failure to obtain applicable shareholder or regulatory approvals, (7) the risks relating to the integration of Peach State'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,
(8) the risk of potential litigation or regulatory action related to the Transactions, (9) the risks associated with United's pursuit of future acquisitions, (10) the risk of expansion into new geographic or product markets, (11) the dilution caused by United's issuance of additional shares of its common stock in the Peach State acquisition, and (12) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements 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, 2025, and other documents subsequently filed by United with the U.S. 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.
# # #