UNITED COMMUNITY BANKS INC (UCB)

CIK: 0000857855. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-02-17.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=857855. Latest filing source: 0000857855-26-000008.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000857855.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000857855.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0000857855-26-000017.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-06. Report date: 2026-03-31.

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our financial condition at March 31, 2026 and December 31, 2025 and our results of operations for the three months ended March 31, 2026 and 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. The following discussion and analysis should be read along with our consolidated financial statements and related notes included in Part I - Item 1 of this Report, “Cautionary Note Regarding Forward-Looking Statements” beginning on page 4 of this Report and the risk factors discussed in our Item 1A. of our 2025 10-K and in Part II, Item IA. of this Report.

Unless the context otherwise requires, in this Report, the terms “we,” “our,” “us” refer to United on a consolidated basis.

Non-GAAP Reconciliation and Explanation

This Report contains financial information determined by methods other than in accordance with GAAP. Such non-GAAP financial information includes the following measures: “tangible book value per common share,” and “tangible common equity to tangible assets.” In addition, management presents non-GAAP operating performance measures, which exclude merger-related and other items that are not part of our ongoing business operations. Operating performance measures include “noninterest income - operating,” “noninterest expense - operating,” “net income – operating,” “diluted income per common share – operating,” “return on common equity – operating,” “return on tangible common equity – operating,” and “return on assets – operating,” “efficiency ratio – operating” and “tangible common equity to tangible assets.” We have developed internal policies and procedures to accurately capture and account for merger-related and other charges we consider to be non-operating or non-recurring and those charges are reviewed with the Audit Committee of our Board each quarter. We use these non-GAAP measures because we believe they provide useful supplemental information for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. We believe these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as a comparison to financial results for prior periods. Nevertheless, non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP. In addition, because non-GAAP measures are not standardized, it may not be possible to compare our non-GAAP measures to similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included in Table 16 of MD&A.

Executive Overview and Results of Operations

Overview

We offer a wide array of commercial and consumer banking services and investment advisory solutions provided through a 200 banking office network throughout Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Our equipment finance and SBA/USDA lending businesses operate throughout the United States. At March 31, 2026, we had consolidated total assets of $28.2 billion and 3,118 full-time equivalent employees.

Merger Activity

Subsequent to the end of the first quarter, on April 21, 2026, we entered into a definitive merger agreement to acquire Peach State Bancshares, Inc. and its wholly-owned subsidiary, Peach State Bank & Trust, headquartered in Gainesville, Georgia. As of March 31, 2026, Peach State Bank & Trust reported total assets of $788 million, with total loans of $498 million and total deposits of $713 million. We expect the merger to close in the third quarter of 2026. See Note 10 to the Notes of the Financial Statements for further detail.

Results of Operations

We reported net income and diluted earnings per common share of $84.3 million and $0.69, respectively, for the first quarter of 2026. This compared to net income and diluted earnings per common share of $71.4 million and $0.58, respectively, for the same period in 2025. Net income - operating for the first quarter of 2026 was $84.7 million, which excluded merger-related and other charges and a $6.70 million one-time payroll transition bonus, which were partially offset by a $5.18 million gain on a terminated cash flow hedge and the $1.89 million release of an accrual for the special FDIC insurance assessment related to certain 2023 bank failures that the

30

FDIC announced it no longer intended to collect. Net income - operating for the first quarter of 2025 was $72.4 million and excluded merger-related and other charges.

We reported total revenue for the first quarters of 2026 and 2025 of $277 million and $248 million, respectively. FTE net interest revenue increased to $234 million for the first quarter of 2026, compared to $213 million for the first quarter of 2025. The increase was mostly driven by a $20.9 million decrease in deposit interest expense as the average rate paid on interest-bearing deposits decreased 52 basis points. The net interest margin increased to 3.65% for the three months ended March 31, 2026 from 3.36% for the same period in 2025, primarily due to the steeper decrease in interest rates paid on deposits compared to the decrease in interest rates earned on loans.

Noninterest income of $43.7 million for the first quarter of 2026 was up $8.09 million, or 23%, from the first quarter of 2025, primarily driven by the $5.18 million gain on the terminated cash flow hedge and a $1.39 million increase in other investment income.

We recorded provisions for credit losses of $10.9 million and $15.4 million for the first quarters of 2026 and 2025, respectively. The lower provision expense for the first quarter of 2026 mostly reflects a more favorable economic forecast compared to that of first quarter of 2025.

For the first quarter of 2026, noninterest expense of $157 million increased by $16.2 million compared to the same period of 2025. The increase was mostly driven by a $17.0 million increase in salaries and employee benefits, primarily due to the one-time payroll transition bonus of $6.70 million and higher total compensation, a portion of which resulted from the acquisition of ANB in the second quarter of 2025, annual merit increases that became effective April 1, 2025 and higher incentives. This was partially offset by a $2.37 million decrease in FDIC assessment and other regulatory charges, reflecting the release of the remaining FDIC special assessment accrual and a lower assessment rate for the first quarter of 2026 compared to the same period of 2025.

Results for the first quarter of 2026 are discussed in further detail throughout the following sections of MD&A.

31

UNITED COMMUNITY BANKS, INC.

Table 1 - Financial Highlights

 (dollars in thousands, except per share data)

2026

2025

First Quarter

2026 - 2025 Change

First

Quarter

Fourth Quarter

Third Quarter

Second Quarter

First

 Quarter

INCOME SUMMARY

Interest revenue

$

333,961 

$

346,367 

$

353,850 

$

347,365 

$

335,357 

Interest expense

101,197 

108,441 

120,221 

121,834 

123,336 

Net interest revenue

232,764 

237,926 

233,629 

225,531 

212,021 

10 

%

Noninterest income

43,746 

40,462 

43,219 

34,708 

35,656 

23 

Total revenue

276,510 

278,388 

276,848 

260,239 

247,677 

12 

Provision for credit losses

10,853 

13,662 

7,907 

11,818 

15,419 

(30)

Noninterest expense

157,302 

152,048 

150,868 

147,919 

141,099 

11 

Income before income tax expense

108,355 

112,678 

118,073 

100,502 

91,159 

19 

Income tax expense

24,066 

26,223 

26,579 

21,769 

19,746 

22 

Net income

84,289 

86,455 

91,494 

78,733 

71,413 

18 

Non-operating items

508 

606 

3,468 

4,833 

1,297 

n/m

Income tax benefit of non-operating items

(113)

(133)

(751)

(1,047)

(281)

n/m

Net income - operating (1)

$

84,684 

$

86,928 

$

94,211 

$

82,519 

$

72,429 

17 

PERFORMANCE MEASURES

Per common share:

Diluted net income - GAAP

$

0.69 

$

0.70 

$

0.70 

$

0.63 

$

0.58 

19 

Diluted net income - operating (1)

0.70 

0.71 

0.75 

0.66 

0.59 

19 

Cash dividends declared

0.25 

0.25 

0.25 

0.24 

0.24 

4 

Book value

30.54 

30.17 

29.44 

28.89 

28.42 

7 

Tangible book value (3)

22.56 

22.24 

21.59 

21.00 

20.58 

10 

Key performance ratios:

Return on common equity - GAAP (2)(4)

9.35 

%

9.48 

%

9.20 

%

8.45 

%

7.89 

%

Return on common equity - operating (1)(2)(4)

9.39 

9.53 

9.83 

8.87 

8.01 

Return on tangible common equity - operating (1)(2)(3)(4)

13.05 

13.31 

13.56 

12.34 

11.21 

Return on assets - GAAP (4)

1.22 

1.21 

1.29 

1.11 

1.02 

Return on assets - operating (1)(4)

1.22 

1.22 

1.33 

1.16 

1.04 

Net interest margin (FTE) (4)

3.65 

3.62 

3.58 

3.50 

3.36 

Efficiency ratio - GAAP

56.66 

54.40 

54.30 

56.69 

56.74 

Efficiency ratio - operating (1)

55.65 

54.19 

53.05 

54.84 

56.22 

Equity to total assets

12.97 

12.99 

12.78 

12.86 

12.56 

Tangible common equity to tangible assets (3)

9.92 

9.92 

9.71 

9.45 

9.18 

ASSET QUALITY

NPAs

$

98,623 

$

93,498 

$

97,916 

$

83,959 

$

93,290 

6 

ACL - loans

208,396 

210,429 

215,791 

216,500 

211,974 

(2)

Net charge-offs

10,377 

16,418 

7,676 

8,225 

9,607 

8 

ACL - loans to loans

1.06 

%

1.09 

%

1.13 

%

1.14 

%

1.15 

%

Net charge-offs to average loans (4)

0.22 

0.34 

0.16 

0.18 

0.21 

NPAs to total assets

0.35 

0.33 

0.35 

0.30 

0.33 

AT PERIOD END ($ in millions)

Loans

$

19,602 

$

19,384 

$

19,175 

$

18,921 

$

18,425 

6 

Investment securities

5,889 

5,988 

6,163 

6,382 

6,661 

(12)

Total assets

28,177 

28,003 

28,143 

28,086 

27,874 

1 

Deposits

24,025 

23,798 

24,021 

23,963 

23,762 

1 

Shareholders’ equity

3,655 

3,639 

3,597 

3,613 

3,501 

4 

Common shares outstanding (thousands)

119,684 

120,598 

121,553 

121,431 

119,514 

— 

(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on page 46. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes AOCI. (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized.

32

Net Interest Revenue

The following discussion provides additional details on the daily average balances and net interest revenue for the periods presented. The table that follows indicates the relationship between interest revenue and expense and the daily average amounts of assets and liabilities, which provides further insight into net interest spread and net interest margin for the periods indicated.

FTE net interest revenue for the first quarter of 2026 was $234 million, representing an increase of $20.9 million, or 10%, from the same period in 2025. The net interest spreads for the first quarters of 2026 and 2025 were 2.92% and 2.46%, respectively. The net interest margins for the first quarters of 2026 and 2025 were 3.65% and 3.36%, respectively.

The interest rate environment changes over the past year included aggregate reductions of 75 basis points in the federal funds rate, which drove decreases in funding costs, and to a lesser extent, loan yields. As a result, the primary driver in the increase in FTE net interest revenue for the first quarter of 2026 was a $20.9 million decr

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-17. Report date: 2025-12-31.

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes. The discussion of the components of our results of operations focuses on financial trends and events occurring between 2024 and 2025.

For additional information related to financial trends between 2024 and 2023, please see the information under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 27, 2025, which information under that caption is incorporated herein by this reference. Historical results of operations are not necessarily predictive of future results.

GAAP Reconciliation and Explanation

This Report contains financial information determined by methods other than in accordance with GAAP. Such non-GAAP financial information includes the following measures: “tangible book value per common share” and “tangible common equity to tangible assets.” In addition, management presents non-GAAP operating performance measures, which exclude merger-related and other items that are not part of our core business operations. Operating performance measures include “noninterest income - operating”, “noninterest expense - operating”, “net income – operating,” “diluted income per common share – operating,” “return on common equity – operating,” “return on tangible common equity – operating,” “return on assets – operating,” and “efficiency ratio – operating.” Management has developed internal processes and procedures to accurately capture and account for merger-related and other charges and those charges are reviewed with the Audit Committee of our Board each quarter. Management uses these non-GAAP measures because it believes they may provide useful supplemental information for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included in Table 21 of MD&A.

Executive Overview and Results of Operations

Overview

We offer a wide array of commercial and consumer banking services and investment advisory services, which as of December 31, 2025, was comprised of 199 banking offices throughout Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Our equipment finance and SBA/USDA lending businesses operate throughout the United States. At December 31, 2025, we had consolidated total assets of $28.0 billion and 3,070 full-time equivalent employees.

Recent Developments

•On May 1, 2025, we completed the acquisition of ANB, which was headquartered in Oakland Park, Florida where it operated one banking location. In the acquisition, we acquired $301 million in loans and $374 million in deposits. ANB’s results are included in our consolidated results beginning on May 1, 2025. We continue to evaluate future potential transactions as opportunities arise. 

•During 2025, we completed the following transactions in accordance with our ongoing capital management strategy:

◦On September 15, 2025, we redeemed all outstanding shares of our Series I preferred stock, which had a carrying value of $88.3 million.

◦We repurchased $44.3 million of our common stock.

◦We redeemed two series of senior debt instruments prior to maturity totaling $135 million.

40

Results of Operations

We reported net income and diluted earnings per common share of $328 million and $2.62, respectively, in 2025 compared to $252 million and $2.04, respectively, in 2024. Net income - operating and diluted earnings per common share - operating for 2025 were $336 million and $2.71, respectively, compared to $284 million and $2.30, respectively, for 2024. Net income - operating for 2025 excludes merger-related and other charges, while 2024 also excludes additional items, notably the loss on the sale of the manufactured housing loans of $27.2 million and the loss on the sale of FinTrust of $5.10 million. See Table 21 of MD&A for the Non-GAAP Performance Measures Reconciliation for further detail on operating net income and operating diluted earnings per share.

Total revenue of $1.06 billion increased $111 million from 2024, primarily as a result of the increase in net interest revenue. FTE net interest revenue increased by $81.6 million, which was mostly driven by lower deposit interest expense. During 2025, our net interest margin increased 23 basis points to 3.52%, which reflects steeper decreases in deposit rates compared to that of loans. See section titled Net Interest Revenue and Tables 2 and 3 of MD&A for further detail on net interest revenue.

In addition, noninterest income for 2025 increased $29.3 million, or 23%, compared to 2024, which is mostly due to the absence of the 2024 loss on the manufactured housing loan sale mentioned above. See Table 4 of MD&A for further detail on noninterest income.

We recorded a provision for credit losses of $48.8 million in 2025 compared to $51.0 million for 2024. The provision for credit losses in 2025 reflects lower net charge-offs, partially offset by stronger loan growth compared to 2024. Additionally, the provision for credit losses for 2024 included a special provision of $9.80 million related to expected losses in western North Carolina, which was severely affected by Hurricane Helene. This reserve was fully released over the course of 2025 as losses were lower than expected.

Noninterest expense increased $13.8 million, or 2%, compared to 2024, which was mostly driven by the $14.4 million increase in salaries and employee benefits, reflecting higher total compensation. This was partially offset by the decrease in other noninterest expense of $7.19 million, as 2024 included the loss on the FinTrust sale. See Table 5 of MD&A for further detail on noninterest expense.

41

UNITED COMMUNITY BANKS, INC.

Table 1 Selected Financial Information

For the Years Ended December 31,

(dollars in thousands, except per share data)

2025

2024

2023

INCOME SUMMARY

Interest revenue

$

1,382,939 

$

1,377,741 

$

1,237,107 

Interest expense

473,832 

550,373 

419,342 

Net interest revenue

909,107 

827,368 

817,765 

Noninterest income

154,045 

124,756 

75,483 

Total revenue

1,063,152 

952,124 

893,248 

Provision for credit losses

48,806 

50,951 

89,430 

Noninterest expense

591,934 

578,167 

571,273 

Income before income tax expense

422,412 

323,006 

232,545 

Income tax expense

94,317 

70,609 

45,001 

Net income

328,095 

252,397 

187,544 

Non-operating items

10,204 

40,268 

88,894 

Income tax benefit of non-operating items

(2,212)

(8,702)

(21,489)

Net income - operating (1)*

$

336,087 

$

283,963 

$

254,949 

PERFORMANCE MEASURES

Per common share:

Diluted net income - GAAP

$

2.62 

$

2.04 

$

1.54 

Diluted net income - operating (1)*

2.71 

2.30 

2.11 

Common stock cash dividends declared

0.98 

0.94 

0.92 

Book value

30.17 

27.87 

26.52 

Tangible book value (3)*

22.24 

20.00 

18.39 

Key Performance Ratios:

Return on common equity - GAAP (2)

9.12 

%

7.07 

%

5.34 

%

Return on common equity - operating (1)(2)*

9.44 

7.97 

7.33 

Return on tangible common equity - operating (1)(2)(3)*

13.34 

11.42 

10.63 

Return on assets - GAAP

1.17 

0.90 

0.68 

Return on assets - operating (1)*

1.20 

1.02 

0.94 

Net interest margin (FTE)

3.52 

3.29 

3.35 

Efficiency ratio - GAAP

55.46 

60.24 

60.09 

Efficiency ratio - operating (1)*

54.51 

57.15 

56.17 

Equity to total assets

12.99 

12.38 

11.95 

Tangible common equity to tangible assets (3)*

9.92 

8.97 

8.36 

ASSET QUALITY

Total NPAs

$

93,498 

$

115,635 

$

92,877 

ACL - loans

210,429 

206,998 

208,071 

Net charge-offs

41,926 

57,690 

52,243 

ACL - loans to loans

1.09 

%

1.14 

%

1.14 

%

Net charge-offs to average loans

0.22 

0.32 

0.30 

NPAs to total assets

0.33 

0.42 

0.34 

AT PERIOD END ($ in millions)

Loans

$

19,384 

$

18,176 

$

18,319 

Investment securities

5,988 

6,804 

5,822 

Total assets

28,003 

27,720 

27,297 

Deposits

23,798 

23,461 

23,311 

Shareholders’ equity

3,639 

3,432 

3,262 

Common shares outstanding (thousands)

120,598 

119,364 

119,010 

(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on page 62.(2) Net income less preferred stock dividends, divided by average common equity. (3) Excludes effect of acquisition related intangibles and associated amortization.

* Represents a non-GAAP measure. See reconciliation of non-GAAP measures to related GAAP financial measures. For more information, see Non-GAAP Performance Measures Reconciliation on page 62.

42

Net Interest Revenue

FTE net interest revenue for 2025 was $913 million, compared to $832 million for 2024. The net interest spread was 2.68% and 2.27% for 2025 and 2024, respectively, while the net interest margin was 3.52% and 3.29%, respectively. Improvement in the net interest spread and net interest margin resulted from reductions totaling 175 basis points in the federal funds rate beginning in September of 2024, which drove decreases in funding costs, and to a lesser extent, loan yields. The increase in net interest revenue also reflects eight months of net interest revenue from the loans and deposits acquired from ANB, which closed on May 1, 2025. Interest expense on deposits decreased $71.8 million, which was mostly driven by a decrease in interest rates paid on deposits, partially offset by deposit growth. In addition, during late 2024 and 2025 we redeemed several debt issuances, which was the primary driver of the reduction in interest expense on long-term debt of $6.31 million.

The following tables indicate the relationship between interest revenue and expense and the average amounts of assets and liabilities, which provide further insight into net interest spread and net interest margin for the periods indicated.

43

Table 2 - Average Consolidated Balance Sheets and Net Interest Margin Analysis

For the Years Ended December 31,

(dollars in thousands, (FTE))

2025

2024

2023

Average

Balance

Interest

Avg.

Rate

Average

Balance

Interest

Avg.

Rate

Average

Balance

Interest

Avg.

Rate

Assets:

Interest-earning assets:

Loans, net of unearned income (FTE) (1)(2)

$

18,776,288 

$

1,152,585 

6.14 

%

$

18,124,179 

$

1,146,440 

6.33 

%

$

17,576,424 

$

1,042,578 

5.93 

%

Taxable securities (3)

6,354,276 

209,810 

3.30 

6,172,942 

199,789 

3.24 

5,929,687 

162,505 

2.74 

Tax-exempt securities (FTE) (1)(3)

352,899 

8,951 

2.54 

362,655 

9,152 

2.52 

381,731 

9,796 

2.57 

Federal funds sold and other interest-earning assets

481,507 

15,701 

3.26 

623,426 

26,652 

4.28 

642,499 

26,397 

4.11 

Total interest-earning assets (FTE)

25,964,970 

1,387,047 

5.34 

25,283,202 

1,382,033 

5.47 

24,530,341 

1,241,276 

5.06 

Noninterest-earning assets:

Allowance for credit losses

(217,084)

(212,968)

(191,016)

Cash and due from banks

208,922 

215,411 

239,574 

Premises and equipment

396,923 

394,127 

355,139 

Other assets (3)

1,664,206 

1,611,405 

1,517,940 

Total assets

$

28,017,937 

$

27,291,177 

$

26,451,978 

Liabilities and Shareholders’ Equity:

Interest-bearing liabilities:

Interest-bearing deposits:

NOW and interest-bearing demand

$

6,023,746 

141,267 

2.35 

$

6,014,052 

175,534 

2.92 

$

5,161,071 

125,336 

2.43 

Money market

6,775,187 

193,908 

2.86 

6,188,579 

214,742 

3.47 

5,462,677 

156,397 

2.86 

Savings

1,120,753 

3,208 

0.29 

1,146,305 

2,717 

0.24 

1,312,469 

2,866 

0.22 

Time

3,572,941 

123,301 

3.45 

3,519,461 

140,229 

3.98 

3,106,989 

100,973 

3.25 

Brokered time deposits

50,509 

2,068 

4.09 

50,359 

2,297 

4.56 

224,914 

10,002 

4.45 

Total interest-bearing deposits

17,543,136 

463,752 

2.64 

16,918,756 

535,519 

3.17 

15,268,120 

395,574 

2.59 

Federal funds purchased and other

  borrowings

22,693 

1,233 

5.43 

2,468 

131 

5.31 

75,965 

3,195 

4.21 

FHLB advances

9,592 

433 

4.51 

4 

— 

— 

124,425 

5,761 

4.63 

Long-term debt

195,686 

8,414 

4.30 

319,163 

14,723 

4.61 

324,753 

14,812 

4.56 

Total borrowed funds

227,971 

10,080 

4.42 

321,635 

14,854 

4.62 

525,143 

23,768 

4.53 

Total interest-bearing liabilities

17,771,107 

473,832 

2.67 

17,240,391 

550,373 

3.19 

15,793,263 

419,342 

2.66 

Noninterest-bearing liabilities:

Noninterest-bearing deposits

6,327,200 

6,299,019 

7,091,034 

Other liabilities

345,832 

409,547 

397,337 

Total liabilities

24,444,139 

23,948,957 

23,281,634 

Shareholders’ equity

3,573,798 

3,342,220 

3,170,344 

Total liabilities and shareholders’ equity

$

28,017,937 

$

27,291,177 

$

26,451,978 

Net interest revenue (FTE)

$

913,215 

$

831,660 

$

821,934 

Net interest-rate spread (FTE)

2.68 

%

2.27 

%

2.40 

%

Net interest margin (FTE) (4)

3.52 

%

3.29 

%

3.35 

%

(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustments totaled $4.11 million, $4.29 million, and $4.17 million, respectively, for 2025, 2024, and 2023. The tax rate used to calculate the adjustment was 25% in 2025 and 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.

(2)Included in the average balance of loans outstanding are loans where the accrual of interest has been discontinued.

(3)Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $232 million, $306 million, and $424 million in 2025, 2024, and 2023, respectively, are included in other assets for purposes of this presentation.

(4)Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

44

The following table shows the relative effect on net interest revenue resulting from changes in the average outstanding balances (volume) of interest-earning assets and interest-bearing liabilities and the rates we earned and paid on such assets and liabilities.

Table 3 - Change in Interest Revenue and Interest Expense

(dollars in thousands, (FTE))

2025 Compared to 2024

2024 Compared to 2023

Increase (decrease) due to changes in

Total

Increase (decrease) due to changes in

Total

Volume

Rate

Change

Volume

Rate

Change

Interest-earning assets:

Loans

$

40,580 

$

(34,435)

$

6,145 

$

33,180 

$

70,682 

$

103,862 

Taxable securities

5,939 

4,082 

10,021 

6,889 

30,395 

37,284 

Tax-exempt securities

(247)

46 

(201)

(483)

(161)

(644)

Federal funds sold and other interest-earning assets

(5,362)

(5,589)

(10,951)

(797)

1,052 

255 

Total interest-earning assets

40,910 

(35,896)

5,014 

38,789 

101,968 

140,757 

Interest-bearing liabilities:

Interest-bearing deposits:

NOW and interest-bearing demand

282 

(34,549)

(34,267)

22,597 

27,601 

50,198 

Money market

19,103 

(39,937)

(20,834)

22,480 

35,865 

58,345 

Savings deposits

(62)

553 

491 

(381)

232 

(149)

Time deposits

2,102 

(19,030)

(16,928)

14,526 

24,730 

39,256 

Brokered time deposits

7 

(236)

(229)

(7,956)

251 

(7,705)

Total interest-bearing deposits

21,432 

(93,199)

(71,767)

51,266 

88,679 

139,945 

Federal funds purchased and other short-term

  borrowings

1,099 

3 

1,102 

(3,729)

665 

(3,064)

FHLB advances

433 

— 

433 

(5,761)

— 

(5,761)

Long-term debt

(5,367)

(942)

(6,309)

(257)

168 

(89)

Total borrowed funds

(3,835)

(939)

(4,774)

(9,747)

833 

(8,914)

Total interest-bearing liabilities

17,597 

(94,138)

(76,541)

41,519 

89,512 

131,031 

Increase in net interest revenue

$

23,313 

$

58,242 

$

81,555 

$

(2,730)

$

12,456 

$

9,726 

Any variance attributable jointly to volume and rate changes is allocated to the volume and rate variance in proportion to the relationship of the absolute dollar amount of the change in each.

45

Noninterest Income

The following table presents the components of noninterest income for the periods indicated.

Table 4 - Noninterest Income

For the Years Ended December 31,

(in thousands)

Change

2025

2024

2023

2025-2024

Service charge and fees:

Overdraft fees

$

13,538 

$

13,523 

$

11,737 

— 

%

ATM and debit card interchange fees

16,000 

15,563 

15,431 

3 

Other service charges and fees

12,193 

11,908 

11,244 

2 

Total service charges and fees

41,731 

40,994 

38,412 

2 

Mortgage loan gains and related fees

25,073 

27,567 

19,220 

(9)

Wealth management fees

18,870 

23,695 

23,740 

(20)

Gains (losses) from sales of other loans, net

7,923 

(21,284)

9,146 

  n/m

Other lending and loan servicing fees

16,412 

14,396 

13,973 

14 

Securities gains (losses), net

352 

(3,316)

(53,333)

n/m

Other noninterest income:

Customer derivatives

4,916 

2,304 

2,517 

113 

Other investment income

3,205 

7,817 

(7)

n/m

BOLI

10,138 

9,299 

8,030 

9 

Treasury management income

8,470 

6,779 

5,064 

25 

Other

16,955 

16,505 

8,721 

3 

Total other noninterest income

43,684 

42,704 

24,325 

2 

Total noninterest income

$

154,045 

$

124,756 

$

75,483 

23 

The decrease in mortgage loan gains and related fees was primarily a result of a decrease in mortgage servicing income of $2.39 million, which includes fair value adjustments to our mortgage servicing asset.

Wealth management fees decreased in 2025 compared to 2024, which included nine months of fees from FinTrust prior to the sale of that business in October of 2024. However, our assets under management at December 31, 2025 increased to $3.40 billion from $3.15 billion at December 31, 2024 as we continue to grow our United Community Private Wealth division.

Gains and losses on sales of other loans generally result from the sale of SBA/USDA loans and equipment financing loans. We sell a portion of our SBA/USDA loan production each quarter, which is determined mostly by the current lending environment and balance sheet management activities. We also sell certain equipment financing receivables based on market conditions. In addition, during 2024, we sold $303 million of manufactured housing loans, substantially all of that portfolio, which resulted in a $27.2 million loss. The sale reduced risk and allowed us to redirect resources to activities that better align with our strategic objectives.

The increase in other lending and loan servicing fees was mostly driven by an increase in equipment financing fee revenue.

Customer derivative fees were up due to stronger loan growth and increased product demand, attributable to the lower interest rate environment compared to the same periods of 2024.

The decrease in other investment income was driven primarily by less favorable unrealized gains on mutual funds and equity securities during 2025 compared to 2024.

Treasury management income increased 25% compared to 2024, which reflects our continued investment in both talent and product offerings related to this line of business.

Provision for Credit Losses

We recorded a provision for credit losses of $48.8 million in 2025, compared to $51.0 million in 2024. The amount of provision recorded in each period was the amount required such that the total ACL reflected the appropriate balance as determined by management reflecting expected life of loan losses. Additional discussion on the ACL is included in the “Allowance for Credit Losses” section under “Credit Risk Management” section of this Report.

46

Noninterest Expense

The following table presents the components of noninterest expense for the periods indicated.

Table 5 - Noninterest Expense

For the Years Ended December 31,

(dollars in thousands)

Change

2025

2024

2023

2025-2024

Salaries and employee benefits

$

354,451 

$

340,043 

$

318,464 

4 

%

Occupancy

44,968 

44,306 

42,640 

1 

Communications and equipment

55,244 

49,249 

43,264 

12 

Professional fees

24,595 

24,732 

26,732 

(1)

Lending and loan servicing expense

8,759 

8,379 

9,722 

5 

Outside services - electronic banking

13,441 

13,703 

11,577 

(2)

Postage, printing and supplies

10,650 

9,867 

9,467 

8 

Advertising and public relations

9,605 

8,546 

9,473 

12 

FDIC assessments and other regulatory charges

18,987 

20,978 

27,449 

(9)

Amortization of intangibles

13,079 

14,596 

15,175 

(10)

Merger-related and other charges

10,204 

8,623 

27,210 

18 

Other

27,951 

35,145 

30,100 

(20)

Total noninterest expense

$

591,934 

$

578,167 

$

571,273 

2 

The increase in salaries and employee benefits was driven by higher total compensation, reflecting annual merit increases that went into effect on April 1, 2025, higher performance-related incentive compensation and the addition of ANB employees on May 1, 2025. Full time equivalent headcount totaled 3,070 at December 31, 2025, up 3% from 2,979 at December 31, 2024.

Communications and equipment expense increased primarily due to new software contracts and incremental software contract costs on existing contracts, including volume based increases.

FDIC assessments and other regulatory charges decreased for 2025 as the comparative period of 2024 included $1.74 million of FDIC special assessment expense.

Other noninterest expense decreased for 2025 as the 2024 comparative period included a $5.39 million loss on the sale of FinTrust. In addition, during 2025, fraud losses declined compared to 2024.

Merger-related and other charges for 2025 primarily related to the ANB acquisition and branch closure costs. Merger-related and other charges for 2024 primarily consisted of costs associated with our rebranding, branch closure costs, and expense related to the sale of FinTrust.

Income Tax Expense

The following table presents income tax expense and the effective tax rate for the periods indicated.

Table 6 - Income Tax Expense

(dollars in thousands)

2025

2024

2023

Income before income taxes

$

422,412 

$

323,006 

$

232,545 

Income tax expense

94,317 

70,609 

45,001 

Effective tax rate

22.3 

%

21.9 

%

19.4 

%

See Note 19 for a reconciliation of income taxes calculated at our statutory federal income tax rate to income tax expense recognized in our consolidated statements of income. Reconciling items generally consist of state income taxes, as well as the effect of tax exempt income and non-deductible expenses.

47

Managing Risk

Our business purpose is to provide financial services and products to customers, which inherently comes with risk. We strive to manage, mitigate and optimize that risk appropriately. We maintain an enterprise risk framework that provides for the structure of the governance and oversight of our primary risk categories, which are outlined below.

•Credit risk: The risk that a borrower or counterparty will fail to perform on an obligation. Credit risk is interrelated with asset quality risk, collection risk and concentration risk. Asset quality risk is associated with the potential for losses due to the deterioration in the value of the loan portfolio. Collection risk relates to our ability to collect on and manage delinquent accounts. Concentration risk is the risk that we could incur a loss due to a significant exposure to a single borrower or group of borrowers such as an industry or geographic region.

•Liquidity risk: The potential that we will be unable to meet our financial obligations as they become due because of an inability to liquidate assets or obtain adequate funding or that we cannot easily unwind or offset specific exposures without significantly lowering market prices because of inadequate market depth or market disruptions. Funding risk, which is the potential inability to generate cash flow to meet short-term obligations, and funding source risk, reflecting the potential inability to obtain and maintain funding from various sources, are included within liquidity risk.

•Market / interest rate risk: The risk resulting from adverse movements in market rates or prices. Market risk includes interest rate risk, the potential for financial losses due to fluctuations related to interest rates, and hedging risk, the potential for financial losses or reduced gains stemming from hedging strategies used to manage other risks.

•Capital risk: The risk of loss of capital/equity through events such as a reduction of earnings, growth in excess of capital generation, or other unforeseen events resulting in earnings loss and/or capital erosion. We also manage capital adequacy risk, which is the risk of not having sufficient capital to meet obligations and absorb unexpected losses. Capital inadequacy can lead to insolvency.

•Strategic risk: The potential that strategic decisions will have an adverse effect on our current or projected financial condition. This includes adverse business decisions, poor implementation of business decisions, or lack of responsiveness to changes in the financial services industry and operating environment. Planning, budgeting and competition risks fall under the strategic risk umbrella.

•Operational risk: The potential that inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events will have an adverse effect on our current or projected financial condition. The following risks are included within operational risk: execution, technology, information security, data, talent/culture, model, fraud, third-party, physical, and business disruption/continuity.

•Legal and compliance risk: The potential for financial loss, reputational damage or operational disruptions due to legal actions, non-compliance with laws and regulations or contractual failures. Compliance risk also pertains to the risk that changes in laws and regulations could affect the operations of our business. We are subject to examination and reporting requirements of the Federal Reserve, FDIC, the SCBFI and the CFPB and we are also subject to various requirements and restrictions under federal and state law.

•Reputation risk: The risk arising from negative public opinion or damaged relationships due to actions of the Bank, its employees or flaws in our products and services. This risk may impair the Bank's competitiveness by affecting its ability to establish new relationships or services or continue servicing existing relationships.

The objective of our risk framework is to establish a formal structure for identifying, assessing, managing, monitoring and reporting risks in order to assist the Bank in achieving its strategic objectives. The framework’s three guiding principles are to be comprehensive, scalable and adaptable. First, the framework provides for comprehensive risk identification and reporting practices that support informed decision-making. Second, the framework establishes a foundational risk management philosophy that provides for the sustainability of a safe and profitable bank. Third, the design of the framework is adaptable allowing risk owners to manage risks to the specific needs of business units and allows for the evolution of risk management activities as the Bank’s risk profile and resources evolve over time.

The following discussion of our financial results and activities for the periods covered by this Report are grouped into their most relevant risk categories of Credit Risk Management, Liquidity Risk Management, Market / Interest Rate Risk Management and Capital Risk Management.

Credit Risk Management

Credit risk is inherent to the lending function. It is important to identify the causes for major credit problems and implement a sound risk management system so returns are maximized while risks are minimized. Growth of portfolios, entrance into new markets or business lines, acquired portfolios, new lending personnel, a competitive environment, counterparty exposures, and current economic conditions all may contribute to an elevated credit risk environment if not properly managed.

48

Our loan portfolio is the largest asset on our balance sheet; therefore credit risk management plays a key role in our overall risk management infrastructure. We consider it essential to maintain a strong credit culture throughout the bank. Credit culture encompasses the behavior, beliefs, philosophy, organization and policies relating to the management of the entire credit function.

We manage concentration risk through project limits, portfolio and sub-portfolio limits, and relationship exposure limits, which vary by risk rating, as well as industry concentration limits.

We have robust underwriting policies that prioritize rational decision-making, compliance with regulatory standards, portfolio diversification, and continuous monitoring, aiming to achieve a balanced approach between risk and reward while ensuring the long-term stability and success of our organization.

Asset Quality

We manage asset quality and control credit risk through review and oversight of the loan portfolio as well as adherence to policies designed to promote sound underwriting and loan monitoring practices. Our credit administration function is responsible for monitoring asset quality and Board approved portfolio concentration limits, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures. 

We conduct reviews of classified performing and non-performing loans, FDMs, past due loans and portfolio concentrations on a regular basis to identify risk migration and potential charges to the ACL. These items are discussed in a series of meetings attended by Credit Risk Management leadership and leadership from various lending groups. In addition to the reviews mentioned above, an independent loan review team reviews the portfolio to ensure consistent application of credit and risk rating policies and procedures.

Loans

As of December 31, 2025, loans totaled $19.4 billion, an increase of $1.21 billion, or 7%, compared to $18.2 billion at December 31, 2024. The increase reflects the addition of loans acquired from ANB, which totaled $301 million at acquisition, and organic loan growth, particularly in our commercial portfolio and in home equity loans.

Allowance for Credit Losses

The ACL reflects management’s assessment of the life of loan expected credit losses in the loan portfolio and unfunded loan commitments. This assessment involves uncertainty and judgment and is subject to change in future periods. The amount of any changes could be significant if the assessment of loan quality or collateral values changes substantially with respect to one or more loan relationships or portfolios or if there is a significant change in the reasonable and supportable forecast used to model our expected credit losses. The allocation of the ACL is based on reasonable and supportable forecasts, historical data, subjective judgment and estimates and therefore, may not be predictive of the specific amounts or loan categories in which charge-offs may ultimately occur. In addition, bank regulatory authorities, as part of their periodic examination of the Bank, may require adjustments to the provision for credit losses in future periods if, in their opinion, the results of their review warrant such additions. See the Critical Accounting Estimates section for additional information on the ACL.

The ACL for loans at December 31, 2025 totaled $210 million compared to $207 million at December 31, 2024 and the ACL for loans as a percentage of total loans decreased to 1.09% from 1.14%. The increase in ACL was primarily attributable to loan growth and the initial allowance established for ANB, partially offset by the full release of the Hurricane Helene related allowance over the course of 2025. The initial ACL for ANB loans totaled $3.65 million, $1.25 million of which was reclassified from the fair value of PCD loans with no impact to earnings. The Hurricane Helene reserve was $9.80 million at December 31, 2024 and was gradually released throughout 2025 based on our assessment of potential storm-related loan losses. Our ACL for unfunded commitments totaled $15.1 million at December 31, 2025 compared to $10.4 million at December 31, 2024, mostly due to an increase in construction commitments.

The following tables provide information on loans and the ACL for the periods indicated. See Note 6 to the consolidated financial statements for further information on loans and the ACL.

49

The following table presents the loan portfolio and the allocation of the ACL by loan type for the periods indicated.

Table 7 - Loan Portfolio Composition and ACL Allocation

As of December 31,

(dollars in thousands)

2025

2024

2023

Loans

% of portfolio

ACL

ACL to Loans

Loans

% of portfolio

ACL

ACL to Loans

Loans

% of portfolio

ACL

ACL to Loans

Owner occupied CRE

$

3,949,898 

20 

%

$

24,888 

0.63 

%

$

3,398,217 

19 

%

$

19,873 

0.58 

%

$3,264,051

18 

%

$23,542

0.72 

%

Income producing CRE

5,032,342 

26 

44,071 

0.88 

4,360,920 

24 

41,427 

0.95 

4,263,952

23 

47,755

1.12 

Commercial & industrial

2,696,291 

14 

43,269 

1.60 

2,428,376 

13 

35,441 

1.46 

2,411,045

13 

30,890

1.28 

Commercial construction & land

997,802 

5 

8,286 

0.83 

1,655,710 

9 

16,370 

0.99 

1,859,538

10 

21,741

1.17 

Equipment financing

1,847,999 

10 

45,852 

2.48 

1,662,501 

9 

47,415 

2.85 

1,541,120

9 

33,383

2.17 

Total commercial

14,524,332 

75 

166,366 

1.15 

13,505,724 

74 

160,526 

1.19 

13,339,706

73 

157,311

1.18 

Residential mortgage

3,157,017 

16 

29,241 

0.93 

3,231,479 

18 

32,259 

1.00 

3,198,928

17 

28,219

0.88 

Home equity

1,319,474 

7 

11,849 

0.90 

1,064,874 

6 

11,247 

1.06 

958,987

5 

9,647

1.01 

Residential construction & land

190,625 

1 

1,799 

0.94 

178,405 

1 

1,672 

0.94 

301,650

2 

1,833

0.61 

Manufactured housing (2)

— 

— 

— 

— 

1,723 

— 

450 

26.12 

336,474

2 

10,339

3.07 

Consumer

187,536 

1 

1,174 

0.63 

186,448 

1 

844 

0.45 

181,117

1 

722

0.40 

Total (1)

$

19,378,984 

$

210,429 

1.09 

$

18,168,653 

$

206,998 

1.14 

$

18,316,862 

$208,071

1.14 

(1) Loans presented exclude fair value hedge basis adjustments. (2) In 2025, manufactured housing loans were included in consumer loans.

The following table sets forth the maturity distribution of our loan portfolio, as well as the interest rate sensitivity for loans maturing after one year.

Table 8 - Loan Portfolio Maturity

As of December 31, 2025

(in thousands)

Maturity

Rate Structure for Loans Maturing Over One Year (2)

One Year or Less

2 - 5 Years

6 - 15 Years

After 15 Years

Total (1)

Fixed Rate

Variable Rate

Owner occupied CRE

$

327,127 

$

2,129,219 

$

1,291,876 

$

201,676 

$

3,949,898 

$

2,312,450 

$

1,310,321 

Income producing CRE

1,176,072 

2,923,395 

782,985 

149,890 

5,032,342 

1,857,029 

1,999,241 

Commercial & industrial

536,234 

1,515,726 

584,877 

59,454 

2,696,291 

793,966 

1,366,091 

Commercial construction & land

415,882 

436,147 

128,052 

17,721 

997,802 

134,069 

447,851 

Equipment financing

66,050 

1,364,086 

417,863 

— 

1,847,999 

1,781,949 

— 

Total commercial

2,521,365 

8,368,573 

3,205,653 

428,741 

14,524,332 

6,879,463 

5,123,504 

Residential mortgage

16,008 

21,865 

168,343 

2,950,801 

3,157,017 

1,052,420 

2,088,589 

Home equity

17,374 

43,666 

43,865 

1,214,569 

1,319,474 

2,005 

1,300,095 

Residential construction & land

6,280 

3,552 

23,867 

156,926 

190,625 

161,128 

23,217 

Consumer

25,974 

132,797 

26,168 

2,597 

187,536 

156,709 

4,853 

Total

$

2,587,001 

$

8,570,453 

$

3,467,896 

$

4,753,634 

$

19,378,984 

$

8,251,725 

$

8,540,258 

(1) Loans presented exclude fair value hedge basis adjustments. (2) The fixed versus variable determination does not reflect the portfolio layer fair value hedges on certain loans.

50

The following table summarizes net charge-offs to average loans for each of the past three years.

Table 9 - Net Charge-offs

Years Ended December 31,

(dollars in thousands) 

2025

2024

2023

Average Loans

Net

Charge-Offs (Recoveries)

Net

Charge-Offs to Average Loans

Average Loans

Net

Charge-Offs (Recoveries)

Net Charge-Offs to Average Loans

Average Loans

Net

Charge-Offs (Recoveries)

Net Charge-Offs to Average Loans

Owner occupied CRE

$

3,536,366 

$

4,703 

0.13 

%

$

3,302,948 

$

(2)

— 

%

$

3,166,495 

$

503 

0.02 

%

Income producing CRE

4,523,284 

1,429 

0.03 

4,193,032 

3,581 

0.09 

3,834,585 

5,939 

0.15 

Commercial & industrial

2,529,312 

9,899 

0.39 

2,349,933 

13,839 

0.59 

2,483,931 

21,059 

0.85 

Commercial construction & land

1,699,442 

1,926 

0.11 

1,865,786 

9 

— 

1,800,307 

(157)

(0.01)

Equipment financing

1,740,217 

20,584 

1.18 

1,577,020 

22,943 

1.45 

1,503,826 

20,162 

1.34 

Residential mortgage

3,210,939 

179 

0.01 

3,233,863 

54 

— 

2,900,916 

(246)

(0.01)

Home equity

1,170,841 

(209)

(0.02)

991,460 

(77)

(0.01)

935,596 

(2,878)

(0.31)

Residential construction & land

178,791 

238 

0.13 

223,399 

264 

0.12 

436,513 

936 

0.21 

Manufactured housing (1)

— 

— 

— 

203,735 

14,388 

7.06 

337,712 

3,859 

1.14 

Consumer

187,096 

3,177 

1.70 

183,003 

2,691 

1.47 

176,543 

3,066 

1.74 

$

18,776,288 

$

41,926 

0.22 

$

18,124,179 

$

57,690 

0.32 

$

17,576,424 

$

52,243 

0.30 

(1) In 2025, manufactured housing loans were included in consumer loans.

During 2025, we recorded lower net charge-offs compared to 2024, as 2024 included $11.0 million in manufactured housing loan charge-offs recorded in connection with the sale of the majority of that portfolio.

Nonperforming Assets

The following table presents NPAs, which consist of nonaccrual loans, OREO and repossessed assets, for the periods indicated. Notably, in 2025 we had two payoffs of senior care loans (included in income producing CRE) totaling $14.6 million.

Table 10 - NPAs

As of December 31,

(in thousands)

2025

2024

2023

Owner occupied CRE

11,165 

11,674 

3,094 

Income producing CRE

11,488 

25,357 

30,128 

Commercial & industrial

18,294 

29,339 

13,467 

Commercial construction & land

18 

7,400 

1,878 

Equipment financing

10,383 

8,925 

8,505 

Total commercial

51,348 

82,695 

57,072 

Residential mortgage

32,423 

24,615 

13,944 

Home equity

5,247 

4,630 

3,772 

Residential construction & land

1,079 

57 

944 

Manufactured housing (1)

— 

1,444 

15,861 

Consumer

1,001 

138 

94 

Total nonaccrual loans

91,098 

113,579 

91,687 

OREO and repossessed assets

2,400 

2,056 

1,190 

Total NPAs

$

93,498 

$

115,635 

$

92,877 

Nonaccrual loans to total loans

0.47 

%

0.62 

%

0.50 

%

NPAs to total assets

0.33 

0.42 

0.34 

ACL - loans to nonaccrual loans coverage ratio

2.31

1.82

2.27

(1) In 2025, manufactured housing loans were included in consumer loans.

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Concentration Considerations

Our commercial loan portfolio makes up 75% of our loan portfolio, which includes owner occupied and income producing real estate, commercial and industrial, commercial construction and land and equipment financing loans.

Approximately 76% of our loan portfolio is secured by real estate and therefore, can be affected by changes in real estate valuations.

The preponderance of our loans are to customers located in the immediate market areas of our banking locations in Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Therefore, our exposure to credit risk is significantly affected by changes in the economy within these markets.

As of December 31, 2025, the average credit exposure of our 25 largest credit relationships was $51.5 million, with an aggregate total credit exposure of $1.29 billion, including $282 million in unfunded commitments and $1.01 billion in balances outstanding, excluding participations sold.

Non-owner occupied CRE loans

The following table provides industry concentrations of our non-owner occupied CRE loans, which include the income producing CRE portfolio and non-owner occupied commercial construction loans as of the dates indicated. Common risks for this loan category include declines in general economic conditions, declines in real estate value, declines in lease rates, declines in occupancy rates, supply and demand for various industries and lack of suitable alternative use for the property. We monitor our income producing CRE portfolio through debt covenant monitoring and performing annual review procedures.

Table 11 - Industry Concentrations of Non-Owner Occupied CRE Loans

As of December 31,

(dollars in thousands)

2025

2024

Total

% of loans in category

Total

% of loans in category

Retail

$

1,338,882 

23 

%

$

1,221,168 

21 

%

Office

898,359 

15 

836,419 

15 

Multifamily

889,579 

15 

973,065 

17 

Warehouse and industrial

656,749 

11 

584,659 

10 

Hotel

487,467 

8 

485,093 

9 

Builder finance

360,698 

6 

329,349 

6 

Rental 1-4 family

325,105 

6 

325,189 

6 

Self storage

296,583 

5 

257,770 

5 

Other

265,937 

5 

250,261 

4 

Senior care

204,558 

3 

311,112 

5 

Land

155,956 

3 

140,527 

2 

Total

$

5,879,873 

100 

%

$

5,714,612 

100 

%

Liquidity Risk Management

Liquidity is defined as the ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasing liabilities. The primary objective of liquidity management is to maintain the ability to meet the daily cash flow requirements of customers, both depositors and borrowers, at a reasonable cost and to take advantage of revenue producing opportunities as they arise. As part of our liquidity management, we focus on maximizing the amount of securities and loans available as collateral for contingent liquidity sources and calibrating our assumptions in our liquidity stress test on an ongoing basis, particularly as it relates to deposit duration. We also conduct scenario analyses and tabletop exercises to help identify, measure, and control risks associated with hypothetical stress events that would have an adverse impact on liquidity. Similarly, periodic testing of secondary funding sources is conducted to reduce the operational risks associated with unexpected industry-wide liquidity events, such as the bank failures that occurred in 2023. We maintain an unencumbered liquid asset reserve to help ensure our ability to meet our obligations under normal conditions for at least a 12-month period and under severely adverse liquidity conditions for a minimum of 30 days. While the desired level of liquidity will vary depending upon a variety of factors, our primary goal is to maintain a sufficient level of liquidity in all expected economic environments.

52

The Bank’s main source of liquidity is customer deposit accounts. Liquidity is also available from cash and cash equivalents and wholesale funding sources consisting primarily of Federal funds purchased, securities sold under agreements to repurchase, FHLB advances and brokered deposits. Wholesale funding instruments are generally short-term in nature and used as necessary to fund asset growth and meet other short-term liquidity needs. At the end of 2025 and 2024, due to loan growth and some seasonal deposit attrition, we utilized modest short-term borrowings to meet short-term funding needs. At December 31, 2025 and 2024, we had $85.0 million and $195 million, respectively, of outstanding federal funds purchased. Our loan and securities portfolios also provide liquidity primarily through loan principal and interest payments and the maturities and sales of securities, as well as the ability to use these assets as collateral for borrowings on a secured basis.

At December 31, 2025 and 2024, we had sufficient qualifying collateral to support additional borrowings, which is detailed in the table below.

Table 12 - Liquid Funds and Unused Borrowing Capacity

(in thousands) 

Available liquid funds:

December 31, 2025

December 31, 2024

Cash and cash equivalents

$

395,754 

$

519,873 

Availability of borrowings (1):

FHLB

$

2,006,045 

$

1,917,905 

Federal Reserve - Discount Window

2,347,191 

2,267,139 

Unpledged securities available as collateral for additional borrowings

$

3,007,534 

$

3,603,885 

(1) Based on collateral pledged.

Additionally, because the Holding Company is a separate entity and apart from the Bank, it must provide for its own liquidity. The Holding Company is responsible for the payment of dividends to its common shareholders, and interest and principal on any outstanding debt or trust preferred securities. The Holding Company currently has internal capital resources to meet these obligations. While the Holding Company has access to the capital markets, the ultimate sources of its liquidity are subsidiary service fees and dividends from the Bank, which are limited by applicable law and regulations. In 2025 and 2024, the Bank paid dividends of $356 million and $153 million, respectively, to the Holding Company. Holding Company liquidity is maintained at a level of at least 125% of the next 12 months of forecasted cash obligations.

In the opinion of management, our liquidity position at December 31, 2025 was sufficient to meet our expected cash requirements.

Deposits

Customer deposits are the primary source of funds for the continued growth of our earning assets. We believe our high level of service, as evidenced by our strong customer satisfaction scores, is instrumental in attracting and retaining customer deposit accounts. Compared to December 31, 2024, customer deposits increased $330 million, which reflects deposits acquired in the ANB transaction and organic growth. Money market accounts increased the most significantly due to continued high demand as money markets are more liquid than time deposits and offer a higher interest rate than demand and savings accounts. As of December 31, 2025, we had approximately $9.81 billion in uninsured deposits, of which $3.02 billion was collateralized by investment securities. The following table sets forth the deposit composition for the periods indicated.

53

Table 13 - Deposits

As of December 31,

(dollars in thousands) 

2025

2024

Balance

Customer Deposit Composition

Balance

Customer Deposit Composition

Noninterest-bearing demand

$

6,252,252 

27 

%

$

6,211,182 

27 

%

NOW and interest-bearing demand

5,969,864 

25 

6,141,342 

26 

Money market and savings

7,781,861 

33 

7,498,735 

32 

Time

3,619,189 

15 

3,441,424 

15 

Total customer deposits

23,623,166 

100 

%

23,292,683 

100 

%

Brokered deposits

175,264 

168,292 

Total deposits

$

23,798,430 

$

23,460,975 

The following table sets forth the scheduled maturities of time deposits greater than $250,000.

Table 14 - Maturities of Time Deposits Greater than $250,000

As of December 31, 2025

(in thousands) 

Three months or less

$

486,654 

Over three through six months

445,050 

Over six months through twelve months

162,837 

Over one year

61,507 

Total

$

1,156,048 

Investment Securities

The composition of the investment securities portfolio reflects our investment strategy of maintaining an appropriate level of liquidity while providing a relatively stable source of revenue. The investment securities portfolio also provides a balance to interest rate risk and credit risk in other categories of the balance sheet while providing a vehicle for the investment of available funds, furnishing liquidity, and supplying securities to pledge as required collateral for certain deposits and borrowings. We utilize fair value hedges on a portion of our AFS securities portfolio in order to mitigate the impact of potential future unrealized losses on our tangible common equity. Gains and losses related to the hedges and hedged items are reflected in investment securities interest income. The changes in the fair value of the hedges and the hedged items substantially offset each other. See Notes 5 and 8 to the consolidated financial statements for further detail on investment securities and derivatives, respectively.

The table below summarizes the carrying value of our securities portfolio and other relevant portfolio metrics as of the dates presented. Effective duration represents the expected change in the price of a security when rates change by 100 basis points.

Table 15 - Investment Securities

As of December 31,

(dollars in thousands)

2025

2024

Carrying Value

% of portfolio

Carrying Value

% of portfolio

2025 - 2024

$ Change

AFS

$

3,750,863 

63 

%

$

4,436,291 

65 

%

$

(685,428)

HTM

2,237,356 

37 

2,368,107 

35 

(130,751)

Total investment securities

$

5,988,219 

$

6,804,398 

$

(816,179)

Investment securities as a % of total assets

21 

%

25 

%

Weighted average life

5.4 years

5.7 years

Swap adjusted effective duration

3.5 

%

3.5 

%

Effective duration

3.8 

3.9 

54

The decrease in the investment securities portfolio reflects our current balance sheet management optimization strategy that prioritizes reinvesting principal and interest from securities to fund loan growth.

At December 31, 2025, HTM debt securities had a fair value of $1.92 billion, indicating pre-tax net unrealized losses of $319 million. Additional pre-tax unrealized losses on HTM debt securities of $51.7 million were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022. Unrealized losses were primarily attributable to changes in interest rates.

The following table presents the amortized cost of securities by contractual maturity of investment securities and weighted-average yields on an FTE basis. Weighted-average yield for each maturity range includes coupon interest, discount accretion and premium amortization and has been calculated using the amortized cost of each security in that range. The composition and maturity / repricing distribution of the securities portfolio is subject to change depending on rate sensitivity, capital and liquidity needs. Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. 

Table 16 - Contractual Maturity and Weighted-Average Yield of AFS and HTM Debt Securities

As of December 31, 2025

(dollars in thousands)

Maturity By Years

1 or Less

1 to 5

6 to 10

Over 10

Total

Amortized Cost

Yield

Amortized Cost

 Yield

Amortized Cost

 Yield

Amortized Cost

 Yield

Amortized Cost

 Yield

AFS

U.S. Treasuries

$

209,572

3.81 

%

$

286,830

2.78 

%

$

—

— 

%

$

—

— 

%

$

496,402

3.21 

%

U.S. Government agencies & GSEs

11,823

1.18 

61,410

1.47 

163,060

4.65 

71,803

4.12 

308,096

3.76 

State and political subdivisions

4,091

2.83 

43,350

1.67 

64,678

1.63 

52,999

1.62 

165,118

1.67 

Residential MBS, Agency & GSE

—

1.08 

43,011

4.37 

91,954

3.15 

1,368,997

3.64 

1,503,962

3.63 

Residential MBS, Non-agency

—

— 

—

— 

394

6.29 

272,475

4.61 

272,869

4.61 

Commercial MBS, Agency & GSE

52,665

5.29 

354,709

3.97 

116,689

3.54 

180,255

2.92 

704,318

3.73 

Commercial MBS, Non-agency

—

— 

—

— 

—

— 

7,857

4.16 

7,857

4.16 

Corporate bonds

26,929

1.61 

102,715

1.97 

12,883

4.48 

—

— 

142,527

2.13 

Asset-backed securities

—

— 

—

— 

13,447

5.28 

271,988

5.13 

285,435

5.14 

Total AFS securities

$

305,080

3.75 

$

892,025

3.09 

$

463,105

3.67 

$

2,226,374

3.85 

$

3,886,584

3.65 

HTM

U.S. Treasuries

$

—

— 

%

$

19,927

1.40 

%

$

—

— 

%

$

—

— 

%

$

19,927

1.40 

%

U.S. Government agencies & GSEs

—

— 

18,279

1.22 

68,072

1.70 

12,500

3.54 

98,851

1.84 

State and political subdivisions

500

5.76 

35,283

1.94 

81,235

2.55 

165,789

2.47 

282,807

2.43 

Residential MBS, Agency & GSE

—

— 

7,495

2.48 

8,422

2.24 

1,166,181

1.85 

1,182,098

1.86 

Commercial MBS, Agency & GSE

—

— 

47,891

1.38 

170,300

1.89 

420,482

2.02 

638,673

1.94 

Supranational entities

—

— 

—

— 

15,000

1.64 

—

— 

15,000

1.64 

Total HTM securities

$

500

5.76 

$

128,875

1.58 

$

343,029

2.00 

$

1,764,952

1.96 

$

2,237,356

1.95 

Mortgage-backed securities, which include both U.S. government sponsored agency and non-agency securities, make up the largest portion of our investment securities portfolio. These securities rely on the underlying pools of mortgage loans to provide a cash flow of principal and interest. The actual maturities of these securities will differ from the contractual maturities because the loans underlying the securities can prepay. Decreases in interest rates will generally cause an acceleration of prepayment levels. In a declining or prolonged low interest rate environment, we may not be able to reinvest the proceeds from these prepayments in assets that have comparable yields. In a rising rate environment, the opposite may occur. Prepayments tend to slow and the weighted average life extends. This is referred to as extension risk, which can lead to lower levels of liquidity due to the delay of cash receipts and can result in the holding of a below market yielding asset for a longer period of time.

ACL- Investments

Our HTM debt securities portfolio is evaluated quarterly to assess whether an ACL is required. At both December 31, 2025 and 2024, calculated credit losses on HTM debt securities were deemed de minimis due to the high credit quality of the portfolio, which included securities issued or guaranteed by U.S. Government agencies, GSEs, high credit quality municipalities and supranational entities. As a result, no ACL for HTM debt securities was recorded.

For AFS debt securities in an unrealized loss position, absent circumstances when the securities would be sold, we evaluate whether the decline in fair value has resulted from credit losses or other factors. If the evaluation indicates a credit loss exists, an ACL may be

55

recorded. At both December 31, 2025 and 2024, there was no ACL related to the AFS debt securities portfolio. Unrealized losses at December 31, 2025 and 2024 primarily reflected the effect of changes in interest rates.

See Note 1 to the consolidated financial statements for further information on the ACL for investment securities.

Long-term Debt

At December 31, 2025 and 2024, we had long-term debt outstanding of $120 million and $254 million, respectively. As of December 31, 2025 long-term debt consisted of subordinated debentures and trust preferred securities, all of which were obligations of the Holding Company. During 2025, we redeemed two senior debt series prior to maturity, which totaled $135 million. In connection with these redemptions, we recognized a $768,000 loss representing the unamortized debt issuance costs as of each instrument’s respective redemption date.

The following table provides long-term debt outstanding by maturity in five-year increments as of the date indicated. Additional information regarding debt instruments is provided in Note 12 to the consolidated financial statements.

Table 17 - Long-term Debt by Maturity Category

As of December 31, 2025

(in thousands)

Next 5 years

$

100,000 

6 - 10 years

5,155 

11 - 15 years

20,620 

125,775 

Less discount

(5,375)

Total long-term debt

$

120,400 

Operating Lease Obligations

We are a party to operating lease agreements for many of our branch locations, ATMs, ITMs, loan production offices and operation centers. For qualifying leases with a term exceeding one year, we record a lease liability and ROU asset on our balance sheet. As of December 31, 2025, the lease liability and ROU asset totaled $38.4 million and $37.0 million, respectively, compared to $45.2 million and $42.8 million, respectively, at December 31, 2024. During 2025, we recorded $3.63 million in ROU assets in exchange for operating lease liabilities of approximately the same amount.

As of December 31, 2025, the remaining terms of our leases with remaining lease liabilities ranged from three months to 10 years. Certain leases contain options to renew the lease at the end of the current term. Unless we have determined we are reasonably likely to renew the lease, these options have been excluded from the calculation of our lease liability and ROU asset. Additional information regarding operating leases is provided in Note 13 to the consolidated financial statements.

Off-Balance Sheet Arrangements

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of customers. These financial instruments included commitments to extend credit and letters of credit, which totaled $4.79 billion at December 31, 2025.

A commitment to extend credit is an agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Letters of credit and financial guarantees are conditional commitments issued to guarantee a customer’s performance to a third party and have essentially the same credit risk as extending loan facilities to customers. Those commitments are primarily issued to local businesses.

The exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, letters of credit and financial guarantees is represented by the contractual amount of these instruments. We use the same credit underwriting procedures for making commitments, letters of credit and financial guarantees as we use for underwriting on-balance sheet instruments. Management evaluates each customer’s creditworthiness on a case-by-case basis and the amount of the collateral, if deemed necessary, is based on

56

the credit evaluation. Collateral held varies, but may include unimproved and improved real estate, certificates of deposit, personal property or other acceptable collateral.

The total amount of these instruments does not necessarily represent future cash requirements because a significant portion of these instruments expire without being used. We believe that we have adequate sources of liquidity to fund commitments that are drawn upon by borrowers.

In addition, we hold investments in certain limited partnerships for tax credit and CRA purposes. We also hold investments in fintech fund limited partnerships. As of December 31, 2025, for certain of these investments, we had committed to fund an additional $50.8 million related to future capital calls that has not been reflected in the consolidated balance sheet.

We are not involved in off-balance sheet contractual relationships, other than those disclosed in this Report, that could result in liquidity needs or other commitments, or that could significantly affect earnings. See Note 22 to the consolidated financial statements for additional information on off-balance sheet arrangements.

Market / Interest Rate Risk Management

Net interest revenue and the fair value of financial instruments are influenced by changes in the level of interest rates. We attempt to limit our exposure to fluctuations in interest rates through policies established by our ALCO and approved by the Board.

The ALCO meets periodically and has responsibility for formulating and recommending asset/liability management policies to the Board, formulating and implementing approved strategies to improve balance sheet positioning and/or earnings, and reviewing interest rate sensitivity. It is responsible for overseeing strategies, policies, and procedures for managing interest rate risk, as well as appropriately developing, executing and maintaining:

•Appropriate policies, procedures, and internal controls addressing interest rate risk management, including limits and controls over interest rate risk exposures and for monitoring that such exposures remain within our risk tolerances;

•Comprehensive systems and standards for measuring interest rate risk, valuing positions, and assessing performance, including procedures for updating interest rate risk measurement scenarios and sensitivity analysis, and reviewing key model assumptions.

ALCO reviews and considers potential strategies for mitigating interest rate risk, considering the risk versus reward trade-off in light of current or expected market conditions. It also considers the interest rate environment when determining the level of interest rate risk it deems appropriate at any given time. In addition, ALCO takes into consideration the current and forecasted capital levels including the interest rate risk relative to the forecasted earnings and capital.

Our Treasury department monitors the Bank’s interest rate risk exposures by utilizing simulations using various scenarios and sensitivity analyses to quantify such exposures. The Treasury department presents potential interest rate risk mitigation strategies and makes recommendations to ALCO with respect to hedges or balance sheet strategies for managing the Bank’s interest rate risk exposures and oversees such potential strategies remain consistent with the strategic objectives of the Bank.

Interest Rate Sensitivity

Interest rate sensitivity is a function of the repricing characteristics of the portfolio of assets and liabilities. These repricing characteristics are the time frames within which the interest-earning assets and interest-bearing liabilities are subject to change in interest rates either at replacement, repricing or maturity. Interest rate sensitivity management focuses on the maturity structure of assets and liabilities and their repricing characteristics during periods of changes in market interest rates. Effective interest rate sensitivity management is intended to ensure that both assets and liabilities respond to changes in interest rates on a net basis within an acceptable timeframe, thereby minimizing the potentially adverse effect of interest rate changes on net interest revenue.

The absolute level and volatility of interest rates can have a significant effect on profitability. The primary objective of interest rate risk management is to identify and manage the sensitivity of net interest revenue to changing interest rates, consistent with our overall financial goals. Based on economic conditions, asset quality and various other considerations, management establishes tolerance ranges for interest rate sensitivity and manages within these ranges. 

Management uses an asset/liability simulation model to measure the potential change in net interest revenue over time using multiple interest rate scenarios. Our modeling utilizes net interest revenue simulations with various interest rate shocks and ramps, which are compared to a base scenario that assumes rates remain unchanged. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the ramp scenarios, rates change by 25 basis points per month until they reach the predetermined levels. The

57

ALCO periodically reviews the assumptions for reasonableness based on historical data and future expectations; however, actual net interest revenue may differ from model results.

The net interest revenue simulation model includes significant key assumptions which may change over time and differ from actual future results. Examples include the shape of modeled yield curves, balance sheet mix and balance sheet behaviors (timing and magnitude). In these scenarios, balances and balance sheet mix are generally consistent throughout the forecast horizon for all scenarios. The impact from existing and forward-starting derivatives are also included in simulated model output.

We utilize derivative financial instruments as a cost-effective and capital-effective means of modifying the repricing characteristics of on-balance sheet assets and liabilities. These contracts generally consist of interest rate swaps under which we pay a fixed rate, (or variable rate, as the case may be) and receive a variable rate (or fixed rate, as the case may be).

Derivative financial instruments that are designated as accounting hedges are classified as either cash flow or fair value hedges. The change in fair value of cash flow hedges is recognized in OCI. Fair value hedges recognize in earnings both the effect of the change in the fair value of the derivative financial instrument and the offsetting effect of the change in fair value of the hedged asset or liability associated with the particular risk of that asset or liability being hedged. We have other derivative financial instruments that are not designated as accounting hedges but are used for interest rate risk management purposes and as an effective economic hedge. Derivative financial instruments that are not accounted for as an accounting hedge are marked to market through earnings. See Note 8 to the consolidated financial statements for further detail. 

All non-customer derivative financial instruments are used only for asset/liability management and as effective economic hedges, and not for trading or speculative purposes. Management believes that the risk associated with using derivative financial instruments to mitigate interest rate risk sensitivity should not have any material unintended effect on our financial condition or results of operations. To mitigate potential credit risk, we may require certain counterparties to derivative contracts to pledge cash or securities as collateral to cover the net exposure. However, most of our derivatives clear centrally through the CME where variation margin, as determined by the CME, is settled daily. See Note 8 to the consolidated financial statements for further detail.

The following table presents the modeled 12-month impact on net interest revenue for the interest rate shocks and ramps shown compared to a base scenario that assumes rates remain unchanged. The scenario results presented assume parallel movements in the yield curve, which may differ from actual future curve behavior.

Table 18 - Interest Sensitivity

Increase (Decrease) in Net Interest Revenue from Base Scenario at

December 31,

2025

2024

Change in Rates

Shock

Ramp

Shock

Ramp

200 basis point increase

0.52 

%

0.66 

%

2.01 

%

0.92 

%

100 basis point increase

0.41 

0.39 

1.19 

0.66 

100 basis point decrease

(0.81)

(0.69)

(2.27)

(1.46)

200 basis point decrease

(2.06)

(1.35)

(6.00)

(2.38)

Asset sensitivity at the end of 2025 was reduced compared to the previous year, primarily driven by the shortened duration and increased repricing frequency in liabilities. A change in the simulation model and ongoing methodology refinements, including enhanced deposit segmentation in 2025, also impacted the comparisons. .

Effect of Inflation and Changing Prices

A bank’s asset and liability structure is substantially different from that of an industrial firm, because a bank’s assets and liabilities are primarily monetary in nature, with relatively little investment in fixed assets or inventories. Inflation has an important effect on the growth of total assets and the resulting need to increase equity capital at higher than nominal rates in order to maintain an appropriate equity to assets ratio.

Our management believes the effect of inflation on financial results depends on our ability to react to changes in interest rates and, by such reaction, reduce the inflationary effect on performance. We have an asset/liability management program to monitor and manage our interest rate sensitivity position. In addition, periodic reviews of banking services and products are conducted to adjust pricing in view of current and expected costs.

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Capital Risk Management

The maintenance and management of capital levels is one of management’s significant priorities. We are committed to maintaining a capital position that will support ongoing operations and achieve our strategic objectives. The ALCO and the Board are responsible for establishing capital adequacy risk ranges that are appropriate given the risks we are exposed to and the environment in which we operate. Current and projected capital levels are compared to the capital adequacy risk ranges and reported quarterly to the ALCO and the Board. We utilize a baseline capital forecast as part of our capital management and planning process to evaluate current and future capital needs. We also use hypothetical stressed scenarios and sensitivity analyses, based on changing economic conditions and scenarios, including potential merger and acquisition transactions and debt/capital market activities. Forecasting alternative capital scenarios helps inform overall capital adequacy and capital ranges.

Shareholders’ Equity Highlights

Shareholders’ equity at December 31, 2025 was $3.64 billion, an increase of $207 million from December 31, 2024. The increase was primarily a result of net income of $328 million, other comprehensive income of $62.3 million, mostly driven by unrealized holding gains on AFS debt securities, and equity of $65.7 million issued for the acquisition of ANB. These increases were partially offset by dividends on common and preferred stock of $125 million, the redemption of $91.5 million of preferred stock and repurchases of $44.3 million of common stock.

Regulatory Capital

Under the risk-based capital guidelines of Basel III, assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of the collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with the category. The resulting weighted values from each of the risk categories are added together, and generally this sum is our total RWAs. RWAs for purposes of our capital ratios are calculated under these guidelines.

CET1 capital consists of common shareholders’ equity, excluding AOCI, intangible assets (goodwill, deposit-based intangibles and certain other intangibles, including certain servicing assets), net of associated deferred tax liabilities, and disallowed deferred tax assets. Tier 1 capital consists of CET1 plus non-cumulative perpetual preferred stock. Tier 2 capital includes the allowable portion of the ACL up to 1.25% of RWA as well as qualifying subordinated debt and trust preferred securities. Tier 1 capital plus Tier 2 capital is referred to as Total risk-based capital.

As of December 31, 2025, we had outstanding subordinated debt of $100 million, of which $40.0 million qualified as Tier 2 capital after applying a discount related to the debt maturing in 2028. In addition, we had outstanding junior subordinated debentures related to trust preferred securities totaling $25.8 million at December 31, 2025, of which $25.0 million (excluding common securities owned by United) qualified as Tier 2 capital. Further information on subordinated debt and trust preferred securities is provided in Note 12 to the consolidated financial statements.

The following table outlines the minimum ratios required for capital adequacy purposes, as well as the thresholds for a categorization of “well-capitalized”.

Table 19 - Capital Ratios

As of December 31,

United Community Banks, Inc. (consolidated)

United Community Bank

Minimum Capital

Well-Capitalized

Minimum Capital Plus Capital Conservation Buffer

2025

2024

2025

2024

Risk-based ratios:

CET1 capital

4.5 

%

6.5 

%

7.0 

%

13.44 

%

13.27 

%

12.34 

%

13.05 

%

Tier 1 capital

6.0 

8.0 

8.5 

13.44 

13.72 

12.34 

13.05 

Total capital

8.0 

10.0 

10.5 

14.77 

15.17 

13.37 

14.08 

Leverage ratio

4.0 

5.0 

    N/A

10.28 

9.96 

9.42 

9.46 

59

Additional information related to capital ratios, as calculated under regulatory guidelines, is provided in Note 21 to the consolidated financial statements. As of December 31, 2025 and 2024, both United and the Bank were characterized as “well-capitalized”. The following table shows capital composition as of December 31, 2025 and 2024.

Table 20 - Capital Composition under Basel III

As of December 31,

(in thousands)

United Community Banks, Inc. (Consolidated)

United Community Bank

2025

2024

2025

2024

Total common shareholders' equity

$

3,638,686 

$

3,343,861 

$

3,391,455 

$

3,282,263 

CECL transitional amount (1)

— 

3,334 

— 

3,334 

Goodwill

(925,119)

(907,090)

(925,119)

(907,090)

Intangibles, other than goodwill and mortgage servicing rights, net of associated DTLs

(37,274)

(42,334)

(37,274)

(42,334)

DTAs arising from net operating loss and tax credit carryforwards

(2,133)

(2,554)

(2,156)

(1,988)

Net unrealized losses on AFS securities

117,606 

177,645 

116,985 

176,777 

Accumulated net gains on cash flow hedges

(5,618)

(9,705)

— 

— 

Net unrealized losses on HTM securities that are included in AOCI

38,308 

45,129 

38,308 

45,129 

Other

276 

(150)

276 

(150)

CET1 capital

2,824,732 

2,608,136 

2,582,475 

2,555,941 

Preferred stock, net of issuance cost

— 

88,266 

— 

— 

Tier 1 capital

2,824,732 

2,696,402 

2,582,475 

2,555,941 

Tier 2 capital instruments

65,000 

85,000 

— 

— 

Qualifying ACL

215,074 

200,871 

215,074 

200,870 

Total capital

$

3,104,806 

$

2,982,273 

$

2,797,549 

$

2,756,811 

(1) The CECL transition was fully phased in for December 31, 2025.

Critical Accounting Estimates 

Our accounting and reporting policies are in accordance with GAAP and conform to general practices within the banking industry. Application of these principles requires management to make estimates, assumptions or judgments that affect the amounts reported in the financial statements and the accompanying notes. These estimates are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates or judgments.

Certain areas of accounting inherently have a greater reliance on the use of estimates, assumptions or judgments and as such, have a greater possibility of producing results that could be materially different than originally reported. We have identified the determination of our ACL to require subjective or complex judgments, estimates and assumptions, and where changes in those judgments, estimates and assumptions (based on new or additional information, changes in the economic climate and/or market interest rates, etc.) could have a significant effect on our financial statements. Therefore, we consider the ACL to be a critical accounting estimate, which we discuss directly with the Audit Committee of our Board.

Our most significant accounting policies are presented in Note 1 to the accompanying consolidated financial statements. These policies, along with the disclosures presented in the other notes to the consolidated financial statements and in this MD&A, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. 

Allowance for Credit Losses 

The ACL represents management’s current estimate of credit losses for the remaining estimated life of financial instruments, with particular applicability on our balance sheet to loans and unfunded loan commitments. Estimating the amount of the ACL requires significant judgment and the use of estimates related to historical experience, current conditions, reasonable and supportable forecasts, and the value of collateral on collateral-dependent loans. The loan portfolio also represents the largest asset type on our consolidated balance sheet. Loan losses are charged against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors.

There are many factors affecting the ACL; some are quantitative while others require qualitative judgment. For example, our ACL model is particularly sensitive to our recent charge-off experience and changes in the forecasted unemployment rate. Although

60

management believes its process for determining the allowance adequately considers all the potential factors that could potentially result in credit losses, the process includes subjective elements and is susceptible to significant change. To the extent actual outcomes are worse than management estimates, additional provision for credit losses could be required that could adversely affect our earnings or financial position in future periods.

One of the most significant estimates and judgments influencing the results of the ACL calculation is the macroeconomic forecast. Changes in the economic forecast could significantly affect estimated expected credit losses and lead to materially different amounts from one period to the next. At December 31, 2025, we used a baseline economic forecast in our ACL calculation that was generally consistent with economists’ consensus. To provide additional context regarding the sensitivity of the ACL, we simulated our ACL process while considering a more pessimistic forecast of expected economic outcomes. In this downside scenario, the unemployment rate is expected to peak at 7.2% in 2026 compared to 4.8% in the baseline scenario. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase to our ACL of $36.0 million at December 31, 2025. This scenario does not reflect our current expectations at December 31, 2025, nor does it capture all the potential unknowns that could arise in the forecast period. It is meant for informational purposes as an approximation of a possible outcome under hypothetical downside conditions.

Additional information on the loan portfolio and ACL can be found in the sections of MD&A titled “Asset Quality and Risk Elements” and “Nonperforming Assets.” Note 1 to the consolidated financial statements includes additional information on accounting policies related to the ACL.

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Table 21 - Non-GAAP Performance Measures Reconciliation

Selected Financial Information

For the Years Ended December 31,

(dollars in thousands, except per share data)

2025

2024

2023

Noninterest income reconciliation

Noninterest income (GAAP)

$

154,045 

$

124,756 

$

75,483 

Loss on sale of manufactured housing loans

— 

27,209 

— 

Gain on lease termination

— 

(2,400)

— 

Bond portfolio restructuring loss

— 

— 

51,689 

Noninterest income - operating

$

154,045 

$

149,565 

$

127,172 

Noninterest expense reconciliation

Noninterest expense (GAAP)

$

591,934 

$

578,167 

$

571,273 

Loss on FinTrust including goodwill impairment

— 

(5,100)

— 

FDIC special assessment

— 

(1,736)

(9,995)

Merger-related and other charges

(10,204)

(8,623)

(27,210)

Noninterest expense - operating

$

581,730 

$

562,708 

$

534,068 

Net income reconciliation

Net income (GAAP)

$

328,095 

$

252,397 

$

187,544 

Loss on sale of manufactured housing loans

— 

27,209 

— 

Bond portfolio restructuring loss

— 

— 

51,689 

Gain on lease termination

— 

(2,400)

— 

Loss on sale of FinTrust, including goodwill impairment

— 

5,100 

— 

FDIC special assessment

— 

1,736 

9,995 

Merger-related and other charges

10,204 

8,623 

27,210 

Income tax benefit of non-operating items

(2,212)

(8,702)

(21,489)

Net income - operating

$

336,087 

$

283,963 

$

254,949 

Diluted income per common share reconciliation

Diluted income per common share (GAAP)

$

2.62 

$

2.04 

$

1.54 

Loss on sale of manufactured housing loans

— 

0.18 

— 

Deemed dividend on preferred stock redemption

0.03 

— 

— 

Bond portfolio restructuring loss

— 

— 

0.33 

Gain on lease termination

— 

(0.02)

— 

Loss on sale of FinTrust, including goodwill impairment

— 

0.03 

— 

FDIC special assessment

— 

0.01 

0.06 

Merger-related and other charges

0.06 

0.06 

0.18 

Diluted income per common share - operating

$

2.71 

$

2.30 

$

2.11 

Book value per common share reconciliation

Book value per common share (GAAP)

$

30.17 

$

27.87 

$

26.52 

Effect of goodwill and other intangibles

(7.93)

(7.87)

(8.13)

Tangible book value per common share

$

22.24 

$

20.00 

$

18.39 

Return on tangible common equity reconciliation

Return on common equity (GAAP)

9.12 

%

7.07 

%

5.34 

%

Loss on sale of manufactured housing loans

— 

0.61 

— 

Deemed dividend on preferred stock redemption

0.09 

— 

— 

Bond portfolio restructuring loss

— 

— 

1.15 

Gain on lease termination

— 

(0.05)

— 

Loss on sale of FinTrust, including goodwill impairment

— 

0.11 

— 

FDIC special assessment

— 

0.04 

0.22 

Merger-related and other charges

0.23 

0.19 

0.62 

Return on common equity - operating

9.44 

7.97 

7.33 

Effect of goodwill and other intangibles

3.90 

3.45 

3.30 

Return on tangible common equity - operating

13.34 

%

11.42 

%

10.63 

%

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Table 21 - Non-GAAP Performance Measures Reconciliation

Selected Financial Information

For the Years Ended December 31,

(dollars in thousands, except per share data)

2025

2024

2023

Return on assets reconciliation

Return on assets (GAAP)

1.17 

%

0.90 

%

0.68 

%

Loss on sale of manufactured housing loans

— 

0.08 

— 

Bond portfolio restructuring loss

— 

— 

0.15 

Gain on lease termination

— 

(0.01)

— 

Loss on sale of FinTrust, including goodwill impairment

— 

0.02 

— 

FDIC special assessment

— 

0.01 

0.03 

Merger-related and other charges

0.03 

0.02 

0.08 

Return on assets - operating

1.20 

%

1.02 

%

0.94 

%

Efficiency ratio reconciliation

Efficiency ratio (GAAP)

55.46 

%

60.24 

%

60.09 

%

Loss on sale of manufactured housing loans

— 

(1.63)

— 

Gain on lease termination

— 

0.15 

— 

Loss on sale of FinTrust, including goodwill impairment

— 

(0.53)

— 

FDIC special assessment

— 

(0.18)

(1.05)

Merger-related and other charges

(0.95)

(0.90)

(2.87)

Efficiency ratio - operating

54.51 

%

57.15 

%

56.17 

%

Tangible common equity to tangible assets reconciliation

Equity to total assets (GAAP)

12.99 

%

12.38 

%

11.95 

%

Effect of goodwill and other intangibles

(3.07)

(3.09)

(3.27)

Effect of preferred equity

— 

(0.32)

(0.32)

Tangible common equity to tangible assets

9.92 

%

8.97 

%

8.36 

%