2023
United Community
Annual Report
T A B L E O F C O N T E N T S
Letter to Shareholders ............................. 1
Executive Officers .................................... 7
Financial Statements ................................ 8
Financial Highlights ......................................... 8
Consolidated Balance Sheets ........................... 9
Consolidated Statements of Income ............ 10
Selected Data—Quarterly Summary ............. 11
Corporate Information ........................... 12
To our growing
United community:
At United Community, our goal is to achieve
consistent performance through both good
and uncertain times. We do that by focusing
on the basics—building great teams, providing
exceptional customer service, and taking a
conservative approach to growth. 2023 proved
to be a volatile year for the banking industry,
but United performed well because of our
attention to those core strategies.
We accomplished many strategic goals during
2023. We began the year by completing
the Progress Financial Corporation merger.
This gave us entry into attractive markets in
Alabama and the Florida Panhandle, and, more
importantly, it brought us a great team of
bankers to continue to propel our growth. In
February, we announced a merger agreement
with First National Bank of South Miami—a
community bank with more than seven
decades of experience serving that market, and
an outstanding team ready to help us build our
Florida market.
With our desired Southeastern footprint largely
settled, we felt 2023 was the opportune time
to invest in our brand to build for the future.
So, under the leadership of our new Chief
Marketing Officer, we updated our logo and
refreshed our brand, which was met with
positive reviews.
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Our teams received several recognitions during the
year, including being named one of America’s Most
Trusted Companies by Newsweek and one of the Best
Banks to Work For by American Banker. We added a new
outstanding director to an already strong and experienced
Board of Directors, and we continued to build our talent
across the bank as we added or promoted individuals to
key leadership positions, both in customer-facing and risk
and control functions.
As we look forward to 2024, economic conditions are still
unsettled. The yield curve continues to be inverted—
long a predictor of possible recession, and a condition
that makes healthy risk-taking difficult, as investors are
incented to invest short term rather than long term.
Concerns about commercial real estate lending are
elevated. Fiscal policy is unsustainably expansionary while
monetary policy is highly restrictive. We will likely have
one of the most contentious presidential elections in our
lifetimes this year. For these reasons, we expect continuing
market volatility in 2024.
To perform well amid this volatile
environment, our focus in 2024 is on
what we believe “moves the needle.”
First, our teams. We plan to continue hiring great people
and investing in new training and development programs.
Many of our competitors are either distracted by merger
integrations or are liquidity-constrained, providing us with
opportunities to attract great bankers. Secondly, customer
service. Our internal customer service scores are at near
record levels because our teams are exceptionally proactive
in serving our clients. We believe that our service model is a
key difference in our ability to compete and win.
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We believe that great people providing great service leads to great long-term
financial results. During 2023, during a period of uncertainty in the industry
regarding deposit stability, our teams grew deposits by $1.4 billion, or 8.4%—
an outstanding achievement. Loans, excluding acquisitions, grew by $972
million, or 6.3%—also a strong performance. Our capital ratios remain above
peer averages, and our balance sheet liquidity remains exceptional, allowing
us the financial strength to continue to grow and serve our customers and
markets. In 2024, we expect to continue to grow responsibly in both loans
and deposits. We also are focused on increasing our net interest margin, with
more attention to how we price loans, and growing low-cost deposits. We are
confident in our loan underwriting and believe that we will perform well on a
relative basis on credit costs in 2024.
A successful bank does more than provide strong
financial returns—a great bank also builds communities.
We do that for two reasons. First, a bank naturally reflects the economic
vitality of the markets it serves. The more economically successful a community
is, the more successful we will be. Equally important, we have an innate
human need to make a difference and impact those around us. During
2023, our teams donated 6,786 hours to serve our communities, and our
foundation supported that work with more than $580,000 in donations to
deserving nonprofits.
Despite the unsettled markets of 2023, your company performed well and
is in position to grow and thrive in 2024. The culture we have carefully
crafted over the years has created an environment to attract and grow great
people—the secret to any strong business. I am looking forward to a very
successful 2024 because of the strength of the people of United. Thank you
for your support!
H. Lynn Harton
Chairman, CEO, and President
United Community Banks, Inc.
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E X E C U T I V E O F F I C E R S
H. Lynn Harton
Chairman, CEO, and
President, UCBI
Richard W. Bradshaw
Chief Banking Officer
Jefferson Harralson
Chief Financial Officer
Robert A. Edwards
Chief Risk Officer
Melinda Davis Lux
General Counsel and
Corporate Secretary
Holly Berry
Chief Human
Resources Officer
Mark Terry
Chief Information Officer
Abraham A. Cox
Chief Marketing Officer
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F I N A N C I A L H I G H L I G H T S
C O N S O L I D A T E D B A L A N C E S H E E T S
($ in 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 income 2
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
2023
2022
$ 817.7
$ 752.4
(89.4)
75.5
(571.3)
(45.0)
187.5
67.4
(63.9)
137.7
(470.2)
(78.5)
277.5
15.1
$ 254.9
$ 292.6
$322.0
$ 322.0
$ 419.9
$419.9
$ 1.54
2.11
$ 2.52
2.66
0.92
26.52
18.39
0.86
24.38
17.13
3.35 %
3.38 %
1.14
0.68
0.94
5.34
10.63
11.95
8.36
12.60
1.04
1.13
1.19
9.54
14.04
11.25
7.88
12.81
$ 18,319
$ 15,335
5,822
27,297
23,311
3,262
6,228
24,009
19,877
2,701
119,010
106,223
3,151
207
2,873
192
1 Excludes the eff ect of merger-related and other non-operating charges of $88.9 million and $19.4 million, respectively, in 2023 and 2022.
2 Excludes income taxes and provision for credit losses.
3 Excludes the eff ect of acquisition-related intangible assets.
4 Net income less preferred dividends divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
($ 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 $2,095,630 and $2,191,073)
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
2023
2022
$ 200,781
$ 195,771
803,094
-
1,003,875
3,331,084
2,490,848
33,008
18,318,755
(208,071)
18,110,684
378,421
345,371
87,782
113,214
50,352
990,087
362,525
$ 27,297,251
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
$ 6,534,307
16,776,304
23,310,611
$ 7,643,081
12,233,426
19,876,507
-
-
324,823
84,811
315,481
158,933
550,000
324,663
99,543
298,564
24,035,726
21,308,210
Shareholders’ equity:
Preferred stock, $1 par value; 10,000,000 shares authorized; Series I, $25,000 per share
liquidation preference; 3,662 and 4,000 shares. Series I issued and outstanding, respectively
Common stock, $1 par value; 200,000,000 shares authorized;
119,010,319 and 106,222,758 shares issued and outstanding, respectively
Common stock issuable; 620,108 and 607,128 shares, respectively
Capital surplus
Retained earnings
Accumulated other comprehensive loss
Total shareholders’ equity
Total liabilities and shareholders’ equity
88,266
96,422
119,010
13,110
2,699,112
581,219
(239,192)
3,261,525
$ 27,297,251
106,223
12,307
2,306,366
508,844
(329,488)
2,700,674
$ 24,008,884
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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
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 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
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, net of discount repurchases
Undistributed earnings allocated to unvested shares
Net income available to common shareholders
Income per common share:
Basic
Diluted
Weighted average common shares outstanding:
Basic
Diluted
2023
2023
2022
2021
$ 1,042,605
$ 1,042,605
$ 673,402
$ 505,734
162,505
162,505
7,295
7,295
24,702
24,702
1,237,107
1,237,107
395,574
395,574
3,195
3,195
5,761
5,761
14,812
14,812
419,342
419,342
817,765
817,765
89,430
89,430
728,335
728,335
38,412
38,412
19,220
19,220
23,740
23,740
9,146
9,146
13,973
13,973
(53,333)
(53,333)
24,325
24,325
75,483
75,483
803,818
803,818
318,464
318,464
42,640
42,640
43,264
43,264
26,732
26,732
9,722
9,722
11,577
11,577
9,467
9,467
9,473
9,473
27,449
27,449
15,175
15,175
27,210
27,210
30,100
30,100
571,273
571,273
232,545
232,545
45,001
45,001
$ 187,544
$ 187,544
5,665
5,665
1,032
1,032
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
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
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
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
$ 180,847
$ 180,847
$ 269,135
$ 261,269
$ 1.54
$ 1.54
1.54
1.54
$ 2.52
2.52
$ 2.97
2.97
117,603
117,603
117,745
117,745
106,661
106,778
87,940
88,097
($ in millions, except per share data)
Earnings Summary
Net interest revenue
Provision for credit losses
Noninterest income
Noninterest expense
Income tax benefit (expense)
Net income—GAAP
Merger-related & non-operating charges, net of tax benefi t
Net income—operating1
Q4
Q4
Q3
Q3
Q2
Q2
Q1
Q1
2023
2023
$ 203.5
$ 203.5
(14.6)
(14.6)
(14.6)
(23.1)
(23.1)
(154.6)
(154.6)
2.9
2.9
14.1
14.1
50.7
50.7
$ 64.8
$ 64.8
$ 202.6
$ 202.6
(30.3)
(30.3)
32.0
32.0
(144.5)
(144.5)
(11.9)
(11.9)
47.9
47.9
7.1
7.1
$ 55.0
$ 55.0
$ 200.2
$ 200.2
(22.7)
(22.7)
36.4
36.4
(132.4)
(132.4)
(18.2)
(18.2)
63.3
63.3
2.8
2.8
$ 66.1
$ 66.1
$ 211.4
$ 211.4
(21.8)
(21.8)
30.2
30.2
(139.8)
(139.8)
(17.8)
(17.8)
62.2
62.2
6.8
6.8
$ 69.0
$ 69.0
2022
Q4
$ 209.9
(19.8)
33.3
(117.3)
(24.6)
81. 5
1.1
$ 82.6
Pre-tax pre-provision income5
$ 25.8
$ 25.8
$ 90.0
$ 90.0
$ 104.3
$ 104.3
$ 101.9
$ 101.9
$ 125.9
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 margin (fully taxable equivalent)3
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
$ 0.11
$ 0.11
0.53
0.53
0.23
0.23
26.52
26.52
18.39
18.39
$ 0.39
$ 0.39
0.45
0.45
0.23
0.23
25.87
25.87
17.70
17.70
$ 0.53
$ 0.53
0.55
0.55
0.23
0.23
25.98
25.98
17.83
17.83
$ 0.52
$ 0.52
0.58
0.58
0.23
0.23
25.76
25.76
17.59
17.59
$ 0.74
0.75
0.22
24.38
17.13
3.19 %
3.19 %
0.18
0.18
0.92
0.92
1.44
1.44
7.27
7.27
10.58
10.58
11.95
11.95
8.36
8.36
3.24 %
3.24 %
0.68
0.68
0.79
0.79
5.32
5.32
6.14
6.14
9.03
9.03
11.85
11.85
8.18
8.18
3.37 %
3.37 %
0.95
0.95
1.00
1.00
7.47
7.47
7.82
7.82
11.35
11.35
11.89
11.89
8.21
8.21
%
%
3.61
3.61
0.95
0.95
1.06
1.06
7.34
7.34
8.15
8.15
11.63
11.63
11.90
11.90
8.17
8.17
3.76 %
1.33
1.35
10.86
11.01
15.20
11.25
7.88
$ 92.9
$ 92.9
208.1
208.1
224.1
224.1
10.1
10.1
$ 90.9
$ 90.9
201.6
201.6
219.6
219.6
26.6
26.6
$ 103.7
$ 103.7
190.7
190.7
212.3
212.3
8.4
8.4
$ 73.4
$ 73.4
176.5
176.5
197.9
197.9
7.1
7.1
$ 44.3
159.4
180.5
6.6
Allowance for credit losses—loans and leases to loans
Net charge-offs to average loans3
NPAs to total assets
1.14 %
1.14 %
0.22
0.22
0.34
0.34
1.11 %
1.11 %
0.59
0.59
0.34
0.34
1.10 %
1.10 %
0.20
0.20
0.40
0.40
1.03 %
1.03 %
0.17
0.17
0.28
0.28
1.04 %
0.17
0.18
At Period End
Loans
Investment securities
Total assets
Deposits
Shareholders’ equity
Common shares outstanding (thousands)
$ 18,319
$ 18,319
5,822
5,822
27,297
27,297
23,311
23,311
3,262
3,262
119,010
119,010
$ 18,203
$ 18,203
5,701
5,701
26,869
26,869
22,858
22,858
3,184
3,184
118,976
118,976
$ 17,395
$ 17,395
5,914
5,914
26,120
26,120
22,252
22,252
3,106
3,106
115,266
115,266
$ 17,125
$ 17,125
5,915
5,915
25,872
25,872
22,005
22,005
3,078
3,078
115,152
115,152
$ 15,335
6,228
24,009
19,877
2,701
106,223
1 Excludes merger-related and other non-operating charges.
2 Excludes the eff ect 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.
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C O R P O R A T E I N F O R M A T I O N
Financial Information
Analysts and investors seeking financial information should contact:
Jefferson L. Harralson,
Chief Financial Officer
864-240-6208
jefferson_harralson@ucbi.com
This Annual Report contains
Stock Price
forward-looking statements
that involve risk and
2022
uncertainty, and actual results
2023
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.
High
39.50
Low
32.09
Close
33.80
$35.25
$25.13
$28.12
28.45
30.18
30.75
20.37
24.29
21.63
24.99
25.41
29.26
Average Daily
Volume
566,908
714,381
658,145
553,643
642,068
4th
1st
2nd
3rd
4th
that were prepared on a basis
non-recurring revenue and
different from accounting
expense items and therefore
principles generally accepted
provide a meaningful basis
in the United States (“GAAP”).
for analyzing financial
References to operating
trends. A reconciliation of
performance measures
these measures to financial
are non-GAAP financial
measures determined using
measures. Management
GAAP is included in the
has included such non-
Annual Report on Form 10-K
GAAP financial measures
filed with the Securities and
This Annual Report also
because such non-GAAP
Exchange Commission.
contains financial measures
measures exclude certain
BOARD OF DIRECTORS
EXECUTIVE OFFICERS
John James
Retired SVP - Americas Legal
Entity Controller Executive
Bank of America
H. Lynn Harton
Chairman, Chief Executive
Officer, and President
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
H. Lynn Harton
Chairman, Chief Executive
Officer, and President
Jennifer Mann
Executive Vice President
Chief Human Resources
Officer
SAS Institute, Inc.
James P. Clements, Ph.D.
President
Clemson University
David C. Shaver
Chief Executive Officer
Cost Segregation Advisors, LLC
Kenneth L. Daniels
Retired Chief Credit Risk and
Policy Officer
BB&T Corporation
Tim R. Wallis
Owner and President
Wallis Printing Company
Lance F. Drummond
Retired Executive
Vice President
Operations and Technology
TD Canada Trust
David H. Wilkins
Partner
Nelson, Mullins, Riley &
Scarborough, LLP
Richard W. Bradshaw
Chief Banking Officer
Abraham A. Cox
Chief Marketing 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
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