United Community Banks (UCB) investor relations material

Executive summary

• Achieved GAAP EPS of $0.95 (up 51% year-over-year) and operating EPS of $0.71 (up 8% year-over-year), with net income of $116 million and total revenue up 7% year-over-year, driven by strong loan growth and margin expansion.

• Net interest margin expanded to 3.68% for the sixth consecutive quarter.

• Loan growth reached $332 million (6.8% annualized), with organic loan growth (ex-Navitas) at 6.4% annualized, supported by new hires and a focus on commercial lending.

• Sale of Navitas equipment finance subsidiary agreed in June 2026, with $1.91 billion in receivables reclassified as held for sale; sale expected to close in Q3 2026.

• Acquisition of Peach State Bancshares closed August 1, 2026, adding $786 million in assets and $707 million in deposits, expanding presence in high-growth Southeast MSAs.

Financial highlights

• Total revenue for Q2 2026 was $279 million, up 7% year-over-year; net interest revenue was $241 million, up 7% year-over-year.

• Noninterest income for Q2 2026 was $38.4 million, up 11% year-over-year, driven by mortgage and investment gains.

• Negative provision for credit losses of $29.8 million in Q2 2026, reflecting a $38.5 million ACL release from Navitas reclassification.

• Noninterest expense for Q2 2026 was $160 million, up 8% year-over-year, mainly due to higher salaries and a $4.5 million California license settlement for Navitas.

• Efficiency ratio (GAAP) was 57.0%; operating at 56.7%.

Outlook and guidance

• Proceeds from Navitas sale expected to support organic loan growth, share repurchases, and potential M&A.

• Net interest margin expected to decline by 20-30 basis points in Q3 due to Navitas sale, but underlying margin should widen as new loans are added at higher yields.

• Deposit costs anticipated to drift slightly higher in the second half due to competition and CD repricing, but liquidity from Navitas sale and securities portfolio will help manage funding.

• Integration of Peach State expected to strengthen presence in Gainesville, GA, with focus on realizing merger synergies and EPS accretion projected for 2027.

• Capital usage, including share repurchases, may increase significantly next year as excess capital builds post-Navitas sale.