United Community Banks (UCB) investor relations material

Executive summary

• Achieved $0.95 GAAP diluted EPS and $0.71 operating EPS, both up 8% year-over-year, with total revenue up 7% and sixth consecutive quarter of net interest margin expansion to 3.68%.

• Loan growth reached $332 million (6.8% annualized), with organic loan growth (ex-Navitas) at 6.4% annualized, driven by a 17% net expansion in revenue producers since Q3 2025.

• Announced acquisition of Peach State Bank and sale of Navitas equipment finance business, both expected to enhance strategic focus and long-term growth; regulatory approval for Peach State received, closing expected in 3Q26.

• Strong loan and deposit franchise in high-growth Southeast MSAs, with $29.1B in assets and $23.7B in deposits.

• Operating ROA was 1.22% and operating ROTCE was 13%, both stable from last quarter despite elevated hiring costs and a notable one-time expense.

Financial highlights

• Net income of $115.6 million, up $36.9 million year-over-year; total revenue of $279.3 million, up 7%.

• Net interest margin rose to 3.68%, up 18 bps year-over-year and 3 bps sequentially.

• GAAP EPS was $0.95, benefiting from a $0.25 per share non-operating gain due to the Navitas reserve release.

• Notable $4.5 million non-recurring operating expense related to a California lender license settlement, with 75% non-deductible for tax purposes.

• Allowance for credit losses decreased to 1.04% of loans after a $38.5 million Navitas reserve release; net charge-offs were 16 basis points (total), 9 basis points (bank-only).

Outlook and guidance

• Sale of Navitas expected to close in Q3 2026; Peach State acquisition on track to close early Q3, with EPS accretion projected for 2027.

• Expect continued strong organic loan growth, targeting 7% annualized ex-Navitas in Q3 and upper single digits next year.

• Margin expected to decline by 20-30 basis points post-Navitas sale but should widen over subsequent quarters 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.

• Ongoing investment in talent and high-growth markets to offset Navitas sale impact.