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% (GAAP and operating), up 18 basis points year-over-year.

• Total revenue rose 12% year-over-year to $277 million, driven by higher net interest revenue and noninterest income.

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

• Announced definitive merger agreement to acquire Peach State Bancshares, expected to close in Q3 2026.

• Operating results exclude merger-related and other non-recurring items, including a $6.7 million payroll transition bonus and a $5.2 million gain on a terminated hedge.

Financial highlights

• Customer deposits grew by $237 million sequentially, with total deposits at $24.0 billion and loans at $19.6 billion as of Q1 2026.

• Net interest revenue increased 10% year-over-year to $233 million, and noninterest income grew 23% to $43.7 million, mainly due to a $5.2 million gain on a terminated hedge.

• Provision for credit losses decreased to $10.9 million, reflecting a more favorable economic outlook.

• Noninterest expense rose 11% to $157 million, primarily due to higher salaries and a one-time payroll bonus.

• Book value per share was $30.54; tangible book value per share was $22.56, both up 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.

• Merger with Peach State Bancshares expected to close in Q3 2026, with integration risks and cost savings highlighted.

• Management expects sufficient liquidity and capital to support ongoing operations and strategic objectives.