United Community Banks (UCB) investor relations material

Executive summary

• Net income for Q1 2026 was $84.3 million, with diluted EPS of $0.69 and operating EPS of $0.70, up 19% year-over-year, and return on assets at 1.22%, up 18 basis points.

• Net interest margin expanded to 3.65%, up 29 basis points year-over-year and 3 basis points sequentially.

• Book value per share grew 10% year-over-year to $30.54; tangible book value per share at $22.56.

• Announced definitive agreement to acquire Peach State Bank, enhancing market position in Hall County, Georgia.

• Notable non-operating items included a $6.7M payroll transition bonus, $5.2M gain on sub-debt cap termination, and $1.9M FDIC assessment release.

Financial highlights

• Total revenue reached $276.5 million, up 12% year-over-year; net interest revenue was $237.9 million.

• Customer deposits grew by $237 million (4% annualized), driven by DDA growth.

• Noninterest income was $43.7 million, including a $5.2 million gain on an interest rate cap.

• Operating expenses were $151.6 million, flat sequentially, with some non-operating items.

• Efficiency ratio improved to 55.7% (operating), down 57 basis points year-over-year.

Outlook and guidance

• Management expects continued improvement in earning asset mix and net interest margin, supported by loan growth and deposit pricing strategies.

• Loan growth guidance in the 5%-6% range for 2026, barring significant external disruptions.

• Margin expected to expand by 3-5 basis points in Q2 2026.

• Modest growth anticipated in fee income, with seasonal strength in mortgage and SBA.

• Strategic focus on high-growth Southeast MSAs with strong population and income growth projections.