2 0 2 2
U N I T E D C O M M U N I T Y B A N K
A N N U A L R E P O R T
Blairsville, Georgia
T A B L E O F C O N T E N T S
Letter to Shareholders ............................. 3
Executive Officers .................................. 10
Financial Statements .............................. 12
Financial Highlights ....................................... 12
Consolidated Balance Sheets ......................... 13
Consolidated Statements of Income ............ 14
Selected Data—Quarterly Summary ............. 15
Corporate Information ........................... 16
T O O U R G R O W I N G
U N I T E D C O M M U N I T Y :
At United Community Bank, we are focused on building what
we call a LEGENDARY bank—a bank that not only has strong
financial performance, but also one that employees believe in,
customers love, and communities value.
We focus on these goals to avoid being distracted by the often
volatile environment we are faced with. Consider the changes
in the economic environment we observe today. Interest rates
are dramatically higher than a year ago, as the Federal Reserve
has increased the federal funds rate at an unprecedented pace
and engaged in quantitative tightening at the same time. Some
consequences of higher rates are easy to see: for example, sharply
higher rates drove both a drop in mortgage loan demand and higher
unrealized bond losses, which impacted bank capital ratios. Some
consequences are not yet clear—we’ll have to wait and see how Fed
tightening will work through the economy in the coming months.
Interest rates are not the only environmental changes we are
adapting to. Deposit growth, which has been strong over the
past two years as the US Government flooded the economy with
stimulus and dramatically grew the monetary base, has now turned
in reverse. Looking forward, funding for loan growth will be more
difficult to obtain for all banks and will come at a higher cost.
Other costs are also increasing as inflation and a labor shortage are
driving up employee costs and the costs of our outside services.
These same issues affect our customer base. Our commercial clients
tell us that they have strong demand for their products but find it
difficult to hire enough people to meet that demand.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 3
Regulatory changes are also significant, with new and more
assertive heads of the regulatory agencies, new CRA regulations,
new SEC regulations, and likely longer approval times for mergers.
We have experienced these challenges before and know that we can
thrive in this—and any—environment as long as we continue to focus
on the basics of what makes us United. That starts with our people.
Our first measure of success as a company
is to be a great place to work for great
people. We just completed our regular all-
employee engagement survey in the fourth
quarter of 2022. Receiving and acting on this
feedback is critical to remaining a great workplace. Already, we
have made significant improvements to our benefits programs
due to the direction provided by the survey. We also increased
our minimum wage during 2022 and implemented unscheduled
mid-year pay increases for more than half of our employees.
The overall message from the survey was very positive, giving
me confidence that our teams continue to believe in and be
excited by our purpose. Our new Chief Human Resources Officer,
Holly Berry, has brought fresh energy and excitement to our
plans as we continue to improve the environment for our teams.
Holly Berry, Chief Human Resources Officer, joined United in
January
.
4 | United Communit y Banks, I nc. 202 2 Annual R epor t
Abraham Cox, Chief Marketing Officer, joined United in November.
Our second measure of success is to have the best customer
service in our markets. To that end, we continue to perform
thousands of surveys every year to understand what actions our
customers value when they have an interaction with United. Each
branch receives a customer satisfaction score, which is both a
qualifier and a multiplier for our team-based branch incentive
system. Our training systems and produc t initiatives are also
informed by these surveys. I am proud that once again:
J.D. Power ranked United Highest in Customer Satisfaction for
Consumer Banking in the Southeast, marking eight out of the last
nine years our teams were recognized with this award.
Additionally, as we continue to adapt to changing customer
desires, we are excited to have added Abraham Cox to our team
in 2022 as our new Chief Marketing Officer. He brings a great
depth of experience and strategic thinking that will help us to
continue delivering legendary service as we move forward.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 5
United team members volunteering with the local Habit for Humanity in Orlando.
6 | United Communit y Banks, I nc. 202 2 Annual R epor t
Having great people, focused on our customers, makes it
easier to make the decisions that drive our third measure of
success—outstanding financial performance. People, united
by purpose, drive performance. We experienced that in 2022, with
strong financial results for the year. Our teams delivered solid loan
growth across all categories. Our net interest margin expanded,
benefiting from increasing interest rates and the strength of our
deposit franchise. The resulting revenue increases, combined with
continuing expense control, led to a new record low efficiency ratio
for us and a record high pre-tax, pre-provision ROA.
Our fourth and final measure of success is to make a
difference in our communities. One of the ways we do that
is by organizing our banking operations geographically and
focusing on being a leader in the communities we operate in.
We use the United Community Bank Foundation to amplify the
efforts of our employees by making donations to community
nonprofit organizations they are involved with. Caring about
our communities is not just important to us personally. We
also believe it’s good for our business—fundamentally, over
time, banks reflect the economic vitality of the communities
they operate in.
This year, we continued to expand our franchise into high-
growth markets, building a foundation for continued success.
We completed the acquisition of Reliant Bancorp, with a strong
presence in Nashville and other growth markets in Tennessee.
In May, we announced the acquisition of Progress Financial
Corporation, headquartered in Huntsville, Alabama, with offices
in several high-growth Alabama and Florida Panhandle markets. In
addition, in February of 2023, we announced a significant increase
in our Miami market presence, bringing First National Bank of
South Miami into the United family.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 7
We find that our culture of customer service, financial performance,
and community building attracts great people to United who want
to contribute and win.
I think that is what author Jim Collins would call “the Flywheel
Effect.” This is the idea that companies don’t become exceptional—
or in our case, LEGENDARY—because of one single initiative, but
instead from the accumulation of little wins that stack up over
years of hard work.
In closing, I would like to recognize and thank one of our directors,
Bob Blalock. Bob is retiring from our board after 23 years of
service to United. Bob exemplifies someone who puts the team
first, wants to win for the right reasons, and speaks the truth
faithfully. He has helped guide the bank during difficult times,
such as the Great Recession, and has been a supporter as we have
changed and grown over the past ten years. We are grateful for all
the years of service he gave us, and we will continue to carry out
his mission for United.
Thanks to our team and board, United had a great 2022. We are
well-positioned to do the same for 2023. We have strong markets,
a strong credit culture, strong capital and earnings, and—what
matters most—a strong team. I believe we will see an even better
2023 because I believe in the people of United.
Lynn Harton
Chairman, CEO, and President
United Community Banks, Inc.
8 | United Communit y Banks, I nc. 202 2 Annual R epor t
Robert (Bob) H. Blalock is retiring from our board after 23 years.
Groundbreaking of the future United Headquarters in Greenville, SC.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 9
E X E C U T I V E O F F I C E R S
H. Lynn Harton
Chairman, CEO, and
President, UCBI
Richard W. Bradshaw
Chief Banking Officer
Jefferson Harralson
Chief Financial Officer
Robert A. Edwards
Chief Risk Officer
Melinda Davis Lux
General Counsel and
Corporate Secretary
Holly Berry
Chief Human
Resources Officer
Mark Terry
Chief Information Officer
10 | United Communit y Banks, I nc. 2 0 22 Annual R e por t
Melinda Davis Lux and Lynn Harton lead discussion at
our annual Senior Leadership Conference.
The board visits the construction site of United’s new headquarters in Greenville, SC.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 1 1
F I N A N C I A L H I G H L I G H T S
($ in millions, except per share data)
Earnings Summary
Net interest revenue
Provision for credit losses
Noninterest income
Noninterest expense
Income tax expense
Net income—GAAP
Merger-related and non-operating charges, net of tax benefit
Net income—operating1
Pre-tax pre-provision income2
Per Common Share
Diluted earnings—GAAP
Diluted earnings—operating1
Cash dividends declared
Book value
Tangible book value3
Performance Measures
Net interest margin
Allowance for loan losses to loans
Return on assets—GAAP
Return on assets—operating1
Return on common equity—GAAP4
Return on tangible common equity—operating1, 3, 4
Equity to total assets
Tangible common equity to tangible assets3
Tier 1 risk-based capital ratio
As of Year-End
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
Employees
Banking offices
2022
2021
$ 752.4
$ 549.0
(63.9)
137.7
(470.2)
(78.5)
277.5
15.1
37.6
157.8
(396.6)
(78.0)
269.8
10.8
$ 292.6
$ 280.6
$ 419.9
$ 310.2
$ 2.52
2.66
$ 2.97
3.09
0.86
24.38
17.13
0.78
23.63
18.42
3.38 %
3.07 %
1.04
1.13
1.19
9.54
14.04
11.25
7.88
12.81
0.87
1.37
1.42
13.14
17.33
10.61
8.09
13.17
$ 15,335
$ 11,760
6,228
24,009
19,877
2,701
106,223
2,873
192
5,653
20,947
18,241
2,222
89,350
2,583
171
1 Excludes the effect of merger-related and other non-operating charges of $19.4 million and $14.0 million, respectively, in 2022 and 2021.
2 Excludes income taxes and provision for credit losses.
3 Excludes the effect of acquisition-related intangible assets.
4 Net income less preferred dividends divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
12 | United Communit y Banks, I nc. 2 0 22 Annual R e por t
C O N S O L I D A T E D B A L A N C E S H E E T S
($ in thousands, except per share data)
Assets
Cash and due from banks
Interest-bearing deposits in banks
Federal funds and other short-term investments
Cash and cash equivalents
Debt securities available-for-sale
Debt securities held-to-maturity (fair value $2,191,073 and $1,148,804)
Loans held for sale, at fair value
Loans, net of unearned income
Less allowance for loan losses
Loans, net
Premises and equipment, net
Bank owned life insurance
Accrued interest receivable
Net deferred tax asset
Derivative financial instruments
Goodwill and other intangible assets, net
Other assets
Total assets
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing demand
Interest-bearing deposits
Total deposits
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Derivative financial instruments
Accrued expenses and other liabilities
Total liabilities
Commitments and contingencies
2022
2021
$ 195,771
$ 144,244
316,082
135,000
646,853
3,614,333
2,613,648
13,600
15,334,627
(159,357)
15,175,270
298,456
299,297
72,807
129,313
50,636
779,248
315,423
$ 24,008,884
2,147,266
27,000
2,318,510
4,496,824
1,156,098
44,109
11,760,346
(102,532)
11,657,814
245,296
217,713
42,999
41,322
42,480
472,407
211,199
$ 20,946,771
$ 7,643,081
12,233,426
19,876,507
$ 6,956,981
11,284,198
18,241,179
158,933
550,000
324,663
99,543
298,564
21,308,210
–
–
247,360
25,145
210,842
18,724,526
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized; Series I, $25,000 per share
liquidation preference; 4,000 shares issued and outstanding, respectively
Common stock, $1 par value; 200,000,000 shares authorized;
106,222,758 and 89,349,826 shares issued and outstanding, respectively
Common stock issuable; 607,128 and 595,705 shares, respectively
Capital surplus
Retained earnings
Accumulated other comprehensive loss
Total shareholders’ equity
Total liabilities and shareholders’ equity
$ 96,422
$ 96,422
106,223
12,307
2,306,366
508,844
(329,488)
2,700,674
$ 24,008,884
89,350
11,288
1,721,007
330,654
(26,476)
2,222,245
$ 20,946,771
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 1 3
C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E
($ in thousands, except per share data)
Interest Revenue
Loans, including fees
Investment securities:
Taxable
Tax exempt
Deposits in banks and short-term investments
Total interest revenue
Interest Expense
Deposits
Short-term borrowings
Federal Home Loan Bank advances
Long-term debt
Total interest expense
Net interest revenue
Provision for credit losses
Net interest revenue after provision for credit losses
Noninterest Income
Service charges and fees
Mortgage loan gains and other related fees
Brokerage and wealth management fees
Gains from other loan sales, net
Other lending and loan servicing fees
Securities (losses) gains, net
Other
Total noninterest income
Total revenue
Noninterest Expenses
Salaries and employee benefits
Occupancy
Communications and equipment
Professional fees
Lending and loan servicing expense
Outside services - electronic banking
Postage, printing and supplies
Advertising and public relations
FDIC assessments and other regulatory charges
Amortization of intangibles
Merger-related and other charges
Other
Total noninterest expenses
Income before income taxes
Income tax expense
Net income
Preferred stock dividends
Earnings allocated to participating securities
Net income available to common shareholders
Income per common share:
Basic
Diluted
Weighted average common shares outstanding:
Basic
Diluted
2022
2021
2020
$ 673,402
$ 505,734
$ 494,212
121,501
10,323
7,929
813,155
42,099
507
1,424
16,768
60,798
752,357
63,913
688,444
38,163
32,524
23,594
10,730
10,005
(3,872)
26,563
137,707
826,151
276,205
36,247
38,234
20,166
9,350
12,583
8,749
8,384
9,894
6,826
19,375
24,136
470,149
356,002
78,530
$ 277,472
6,875
1,462
$ 269,135
61,994
8,978
2,088
578,794
14,845
-
3
14,912
29,760
549,034
(37,550)
586,584
33,868
58,446
18,998
11,267
9,427
83
25,729
157,818
744,402
241,443
28,619
29,829
20,589
10,859
9,481
7,110
5,910
7,398
4,045
13,970
17,386
396,639
347,763
77,962
$ 269,801
6,875
1,657
$ 261,269
55,031
7,043
1,710
557,996
41,772
3
28
14,434
56,237
501,759
80,434
421,325
32,401
76,087
9,240
5,420
8,028
748
24,185
156,109
577,434
224,060
25,791
27,149
18,032
10,993
7,513
6,779
15,203
5,982
4,168
7,018
15,301
367,989
209,445
45,356
$ 164,089
3,533
1,287
$ 159,269
$ 2.52
2.52
$ 2.97
2.97
$ 1.91
1.91
106,661
106,778
87,940
88,097
83,184
83,248
14 | United Communit y Banks, I nc. 2 0 22 Annual R e por t
S E L E C T E D D A T A — Q U A R T E R L Y S U M M A R Y
($ in millions, except per share data)
Earnings Summary
Net interest revenue
Provision for credit losses
Noninterest income
Noninterest expense
Income tax expense
Net income—GAAP
Merger-related & non-operating charges, net of tax benefit
Net income—operating1
Q4
Q3
Q2
Q1
2022
$ 209.9
(19.8)
33.3
(117.3)
(24.6)
81. 5
1.1
$ 82.6
$ 199.8
(15.4)
31.9
(112.8)
(22.4)
81.1
1.4
$ 82.5
$ 178.9
(5.6)
33.5
(120.8)
(19.1)
66.9
5.5
$ 72.4
$ 163.8
(23.1)
39.0
(119.3)
(12.4)
48.0
7.1
$ 55.1
2021
Q4
$ 137.6
0.6
37.2
(109.2)
(14.2)
52.0
7.7
$ 59.7
Pre-tax pre-provision income5
$ 125.9
$ 118.9
$ 91.6
$ 83.5
$ 65.6
Performance Measures
Per common share:
Diluted net income—GAAP
Diluted net income—operating1
Cash dividends declared
Book value
Tangible book value2
Key performance ratios:
Net interest margin3
Return on assets —GAAP3
Return on assets—operating1, 3
Return on common equity—GAAP3, 4
Return on common equity—operating1, 3, 4
Return on tangible common equity—operating1, 2, 3, 4
Equity to total assets
Tangible common equity to tangible assets2
Asset Quality
Non-performing assets (NPAs)
Allowance for credit losses—loans and leases
Allowance for credit losses—total
Net charge-offs (recoveries)
$ 0.74
0.75
0.22
24.38
17.13
$ 0.74
0.75
0.22
23.78
16.52
$ 0.61
0.66
0.21
23.96
16.68
$ 0.43
0.50
0.21
24.38
17.08
$ 0.55
0.64
0.20
23.63
18.42
3.76 %
1.33
1.35
10.86
11.01
15.20
11.25
7.88
3.57 %
1.32
1.34
11.02
11.21
15.60
11.12
7.70
3.19 %
1.08
1.17
9.31
10.10
14.20
10.95
7.59
2.97 %
0.78
0.89
6.80
7.83
11.00
11.06
7.72
2.81 %
0.96
1.10
9.32
10.74
13.93
10.61
8.09
$ 44.3
159.4
180.5
6.6
$ 35.5
148.5
167.3
1.1
$ 34.4
136.9
153.0
(1.1)
$ 40.8
132.8
146.4
3.0
$ 32.8
102.5
113.5
0.2
Allowance for credit losses—loans and leases to loans
Net charge-offs to average loans3
NPAs to total assets
1.04 %
0.17
0.18
1.00 %
0.03
0.15
0.94 %
(0.03)
0.14
0.93 %
0.08
0.17
0.87 %
0.01
0.16
At Period End
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
$ 15,335
6,228
24,009
19,877
2,701
106,223
$ 14,882
6,539
23,688
20,321
2,635
106,163
$ 14,541
6,683
24,213
20,873
2,651
106,034
$ 14,316
6,410
24,374
21,056
2,695
106,025
$ 11,760
5,653
20,947
18,241
2,222
89,350
1 Excludes merger-related and other non-operating charges.
2 Excludes the effect of acquisition related intangible assets.
3 Annualized.
4 Net income less preferred dividends divided by average realized common equity, which excludes accumulated other comprehensive loss.
5 Excludes income taxes and provision for credit losses.
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 1 5
C O R P O R A T E I N F O R M A T I O N
Financial Information
Stock Price
Analysts and investors seeking financial
information should contact:
Jefferson L. Harralson, Chief Financial Officer
864-240-6208 | jefferson_harralson@ucbi.com
2021
2022
High
Low
Close
Average Daily
Volume
$ 37.24 $ 31.85
$ 35.94
544,805
$ 39.32
$ 34.05
$ 34.80
35.47
36.79
39.50
27.85
29.62
32.09
30.19
33.10
33.80
839,481
574,079
511,111
566,908
4th
1st
2nd
3rd
4th
This Annual Report contains forward-looking
statements that involve risk and uncertainty,
and actual results could differ materially from
the anticipated results or other expectations
expressed in the forward-looking statements.
A discussion of factors that could cause
actual results to differ materially from those
expressed in the forward-looking statements
is included in the Annual Report on Form
10-K filed with the Securities and Exchange
Commission.
This Annual Report also contains financial
measures that were prepared on a basis
different from accounting principles
generally accepted in the United States
(“GAAP”). References to operating
performance measures are non-GAAP
financial measures. Management has
included such non-GAAP financial measures
because such non-GAAP measures exclude
certain non-recurring revenue and expense
items and therefore provide a meaningful
basis for analyzing financial trends. A
reconciliation of these measures to financial
measures determined using GAAP is included
in the Annual Report on Form 10-K filed with
the Securities and Exchange Commission.
Investor Information
Registrar Transfer Agent
Investor information, including
this report, Form 10-K, quarterly
financial results, press releases,
and various other reports,
is available at ir.ucbi.com.
Alternatively, shareholders
may contact Investor Relations
at 866-270-5900 or investor_
relations@ucbi.com.
Stock Exchange
United Community Banks, Inc.
common stock (Ticker: UCBI) and
preferred stock (Ticker: UCBIO)
are listed for trading on the
NASDAQ Global Select Market.
Independent Registered
Public Accountants
PricewaterhouseCoopers LLP,
Atlanta, GA
Continental Stock Transfer &
Trust Co.
17 Battery Park, 8th Floor
New York, NY 10004
212-509-4000 |
continentalstock.com
Equal Opportunity
Employer
United Community Banks, Inc. is
an equal opportunity employer.
All matters regarding recruiting,
hiring, training, compensation,
benefits, promotions,
transfers, and other personnel
policies will remain free from
discriminatory practices.
Disclaimer
This statement has not been
reviewed, or confirmed for accuracy
or relevance, by the Federal Deposit
Insurance Corporation.
16 | United Communit y Banks, I nc. 2 0 22 Annual R e por t
Board of Directors
Thomas A. Richlovsky
Lead Director,
Retired Chief Financial Officer
and Treasurer
National City Corporation
Jennifer M. Bazante
Chief Marketing Officer
Humana
George Bell
Former Executive Vice
President
Truist
Robert H. Blalock
Former Chief Executive Officer
Blalock Insurance Agency, Inc.
James P. Clements, Ph.D.
President
Clemson University
Kenneth L. Daniels
Retired Chief Credit Risk
and Policy Officer
BB&T Corporation
Lance F. Drummond
Retired Executive Vice President
Operations and Technology
TD Canada Trust
H. Lynn Harton
Chairman, Chief Executive
Officer, and President
Jennifer Mann
Executive Vice President
Chief Human Resources Officer
SAS Institute, Inc.
David C. Shaver
Chief Executive Officer
Cost Segregation Advisors, LLC
Tim R. Wallis
Owner and President
Wallis Printing Company
David H. Wilkins
Partner
Nelson, Mullins, Riley &
Scarborough, LLP
Executive Officers
H. Lynn Harton
Chairman, Chief Executive
Officer, and President
Richard W. Bradshaw
Chief Banking Officer
Holly Berry
Chief Human Resources
Officer
Robert A. Edwards
Chief Risk Officer
Jefferson L. Harralson
Chief Financial Officer
Melinda Davis Lux
General Counsel and
Corporate Secretary
Mark Terry
Chief Information Officer
United Communit y Banks, I nc. 20 2 2 Annua l R epor t | 1 7