10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2022

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Transition Period from ___________ to ___________

Commission file number 001-35095

UNITED COMMUNITY BANKS, INC.

(Exact name of registrant as specified in its charter)

Georgia	58-1807304
(State of incorporation)	(I.R.S. Employer Identification No.)

125 Highway 515 East
Blairsville, Georgia	30512
(Address of principal executive offices)	(Zip code)

(706) 781-2265

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, par value $1 per share	UCBI	Nasdaq Global Select Market
Depositary shares, each representing 1/1000th interest in a share of Series I Non-Cumulative Preferred Stock	UCBIO	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

Yes ☐ No ☒

There were 106,169,829 shares of the registrant’s common stock, par value $1 per share, outstanding as of October 31, 2022.

UNITED COMMUNITY BANKS, INC.

FORM 10-Q

INDEX

		Glossary of Defined Terms	3
		Cautionary Note Regarding Forward-looking Statements	4
PART I - Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets (unaudited)	5
		Consolidated Statements of Income (unaudited)	6
		Consolidated Statements of Comprehensive Income (unaudited)	7
		Consolidated Statements of Changes in Shareholders’ Equity (unaudited)	8
		Consolidated Statements of Cash Flows (unaudited)	9
		Notes to Consolidated Financial Statements	10
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
	Item 4.	Controls and Procedures	59
PART II - Other Information
	Item 1.	Legal Proceedings	60
	Item 1A.	Risk Factors	60
	Item 5.	Other Information.	60
	Item 6.	Exhibits	61

2

Glossary of Defined Terms

The following terms may be used throughout this report, including the consolidated financial statements and related notes.

Term	Definition
2021 10-K	United’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022
ACL	Allowance for credit losses
AFS	Available-for-sale
ALCO	Asset/Liability Management Committee
AOCI	Accumulated other comprehensive income (loss)
Aquesta	Aquesta Financial Holdings, Inc. and its wholly-owned subsidiary, Aquesta Bank
ASU	Accounting standards update
Bank	United Community Bank
Board	United Community Banks Inc., Board of Directors
BOLI	Bank-owned life insurance
CECL	Current expected credit loss model
CET1	Common equity tier 1
CME	Chicago Mercantile Exchange
Company	United Community Banks Inc. (interchangeable with "United" below)
CVA	Credit valuation adjustment
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
Federal Reserve	Federal Reserve System
FHLB	Federal Home Loan Bank
FinTrust	FinTrust Capital Partners, LLC, and its operating subsidiaries, FinTrust Capital Advisors, LLC, FinTrust Capital Benefits Group, LLC and FinTrust Brokerage Services, LLC
FTE	Fully taxable equivalent
GAAP	Accounting principles generally accepted in the United States of America
GSE	U.S. government-sponsored enterprise
HELOC	Home equity lines of credit
HFI	Held for investment
Holding Company	United Community Banks, Inc. on an unconsolidated basis
HTM	Held-to-maturity
LIBOR	London Interbank Offered Rate
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations
MBS	Mortgage-backed securities
NOW	Negotiable order of withdrawal
NPA	Nonperforming asset
OCI	Other comprehensive income (loss)
OREO	Other real estate owned
PCD	Purchased credit deteriorated
PPP	Paycheck Protection Program
Progress	Progress Financial Corporation and its wholly-owned subsidiary, Progress Bank & Trust
Reliant	Reliant Bancorp, Inc. and its wholly-owned subsidiary, Reliant Bank
Report	Quarterly Report on Form 10-Q
SBA	United States Small Business Administration
SEC	Securities and Exchange Commission
TDR	Troubled debt restructuring
U.S. Treasury	United States Department of the Treasury
United	United Community Banks, Inc. and its direct and indirect subsidiaries
USDA	United States Department of Agriculture

3

Cautionary Note Regarding Forward-looking Statements

This Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “projects”, “plans”, “goal”, “targets”, “potential”, “estimates”, “pro forma”, “seeks”, “intends”, or “anticipates”, or similar expressions. Forward-looking statements include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of various transactions or events (including the expected completion date of the Progress transaction), and statements about our future performance, operations, products and services, and should be viewed with caution.

Because forward-looking statements relate to the future, they are subject to known and unknown risks, uncertainties, assumptions, and changes in circumstances, many of which are beyond our control, and that are difficult to predict as to timing, extent, likelihood and degree of occurrence, and that could cause actual results to differ materially from the results implied or anticipated by the statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to the following:

•negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the levels of non-performing assets, charge-offs and provision expense;

•changes in loan underwriting, credit review or loss policies associated with economic conditions, examination conclusions or regulatory developments, either as they currently exist or as they may be affected by conditions associated with the COVID-19 pandemic;

•COVID-19’s continuing effects on the economic and business environments in which we operate;

•strategic, market, operational, liquidity and interest rate risks associated with our business;

•unanticipated changes in the interest rate environment, including interest rate changes made by the Federal Reserve, the discontinuation of LIBOR as an interest rate benchmark, and cash flow reassessments, may reduce net interest margin and/or the volumes and values of loans made or held as well as the value of other financial assets;

•our lack of geographic diversification and any unanticipated or greater than anticipated adverse conditions in the national or local economies in which we operate;

•our loan concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate;

•the risks of expansion into new geographic or product markets;

•risks with respect to recent, pending or potential future mergers or acquisitions, including our ability to successfully complete acquisitions and therefore, to integrate or expand businesses and operations that we acquire;

•our ability to attract and retain key employees;

•competition from financial institutions and other financial service providers, including non-bank financial technology providers, and our ability to attract customers from other financial institutions;

•losses due to fraudulent and negligent conduct of our customers, third party service providers or employees;

•cybersecurity risks and the vulnerability of our network and online banking portals, and the systems of parties with whom we contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches that could adversely affect our business and financial performance or reputation;

•our reliance on third parties to provide key components of our business infrastructure and services required to operate our business;

•the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the financial services market;

•the availability of and access to capital;

•legislative (e.g., tax), regulatory or accounting changes that may adversely affect us;

•volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates or other factors;

•adverse results (including judgments, costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current or future litigation, regulatory proceedings, examinations, investigations, or similar matters, or developments related thereto;

•any event or development that would cause us to conclude that there was impairment of any asset, including intangible assets, such as goodwill;

•limitations on our ability to declare and pay dividends and other distributions from the Bank to the Holding Company, which could affect Holding Company liquidity, including the ability to pay dividends to shareholders or undertake other capital initiatives, such as share repurchases; and

•other risks and uncertainties disclosed in documents filed or furnished by us with or to the SEC, any of which could cause actual results to differ materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on forward-looking statements. Additional factors that may cause actual results to differ materially from those contemplated by any forward-looking statements also may be found in our 2021 10-K (including the “Risk Factor” section of that report), Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available at the SEC’s website at http://www.sec.gov. We do not intend to and, except as required by law, hereby disclaim any obligation to update or revise any forward-looking statement contained in this Report, which speaks only as of the date of its filing with the SEC, whether as a result of new information, future events, or otherwise. The financial statements and information contained herein have not been reviewed, or confirmed for accuracy or relevance, by the FDIC or any other regulator.

4

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

	September 30, 2022		December 31, 2021
ASSETS
Cash and due from banks	$	222,524	$	144,244
Interest-bearing deposits in banks	216,496		2,147,266
Federal funds and other short-term investments	45,000		27,000
Cash and cash equivalents	484,020		2,318,510
Debt securities available-for-sale	3,862,886		4,496,824
Debt securities held-to-maturity (fair value $2,241,160 and $1,148,804, respectively)	2,676,405		1,156,098
Loans held for sale	21,967		44,109
Loans and leases held for investment	14,882,484		11,760,346
Less allowance for credit losses - loans and leases	(148,502)		(102,532)
Loans and leases, net	14,733,982		11,657,814
Premises and equipment, net	288,597		245,296
Bank owned life insurance	300,365		217,713
Goodwill and other intangible assets, net	780,868		472,407
Other assets	538,765		338,000
Total assets	$	23,687,855	$	20,946,771
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	8,198,129	$	6,956,981
Interest-bearing deposits	12,123,013		11,284,198
Total deposits	20,321,142		18,241,179
Long-term debt	324,515		247,360
Accrued expenses and other liabilities	407,488		235,987
Total liabilities	21,053,145		18,724,526
Shareholders' equity:
Preferred stock, $1 par value: 10,000,000 shares authorized;   4,000 shares Series I issued and outstanding; $25,000 per share liquidation preference	96,422		96,422
Common stock, $1 par value: 200,000,000 shares authorized,   106,162,861 and 89,349,826 shares issued and outstanding, respectively	106,163		89,350
Common stock issuable: 596,365 and 595,705 shares, respectively	11,966		11,288
Capital surplus	2,304,514		1,721,007
Retained earnings	452,788		330,654
Accumulated other comprehensive loss	(337,143)		(26,476)
Total shareholders' equity	2,634,710		2,222,245
Total liabilities and shareholders' equity	$	23,687,855	$	20,946,771

See accompanying notes to consolidated financial statements (unaudited).

5

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Income (Unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest revenue:
Loans, including fees	$	174,065	$	128,477	$	476,072	$	382,261
Investment securities, including tax exempt of $2,568, $2,280, $7,762 and $6,685, respectively	36,953		18,540		91,043		51,530
Deposits in banks and short-term investments	2,869		658		5,209		1,235
Total interest revenue	213,887		147,675		572,324		435,026
Interest expense:
Deposits	9,880		3,142		17,313		11,981
Short-term borrowings	27		—		27		2
Long-term debt	4,206		3,494		12,515		11,564
Total interest expense	14,113		6,636		29,855		23,547
Net interest revenue	199,774		141,039		542,469		411,479
Provision for (release of) credit losses	15,392		(11,034)		44,082		(36,903)
Net interest revenue after provision for credit losses	184,382		152,073		498,387		448,382
Noninterest income:
Service charges and fees	9,569		9,350		28,644		25,255
Mortgage loan gains and other related fees	6,297		13,828		29,420		47,536
Wealth management fees	5,879		5,554		17,759		12,881
Gains from sales of other loans, net	2,228		2,353		9,226		7,506
Lending and loan servicing fees	2,946		2,825		7,518		7,070
Securities gains (losses), net	—		—		(3,688)		41
Other	5,003		6,185		15,474		20,352
Total noninterest income	31,922		40,095		104,353		120,641
Total revenue	216,304		192,168		602,740		569,023
Noninterest expenses:
Salaries and employee benefits	67,823		60,458		208,062		180,457
Communications and equipment	8,795		7,368		27,718		21,979
Occupancy	9,138		7,096		27,381		21,130
Advertising and public relations	2,544		1,458		6,332		4,150
Postage, printing and supplies	2,190		1,731		6,308		5,171
Professional fees	4,821		5,347		14,670		14,509
Lending and loan servicing expense	2,333		2,450		7,746		8,508
Outside services - electronic banking	3,159		2,308		8,629		6,811
FDIC assessments and other regulatory charges	2,356		1,723		6,796		5,520
Amortization of intangibles	1,678		1,028		5,207		2,942
Merger-related and other charges	1,746		1,437		17,905		4,058
Other	6,172		4,345		16,066		12,248
Total noninterest expenses	112,755		96,749		352,820		287,483
Income before income taxes	103,549		95,419		249,920		281,540
Income tax expense	22,388		21,603		53,898		63,758
Net income	$	81,161	$	73,816	$	196,022	$	217,782
Net income available to common shareholders	$	79,035	$	71,649	$	189,858	$	211,283
Net income per common share:
Basic	$	0.74	$	0.82	$	1.78	$	2.42
Diluted	0.74		0.82		1.78		2.42
Weighted average common shares outstanding:
Basic	106,687		87,211		106,616		87,274
Diluted	106,800		87,355		106,732		87,413

See accompanying notes to consolidated financial statements (unaudited). 

6

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	Before-tax Amount		Tax (Expense) Benefit		Net of Tax Amount		Before-tax Amount		Tax (Expense) Benefit		Net of Tax Amount
2022
Net income	$	103,549	$	(22,388)	$	81,161	$	249,920	$	(53,898)	$	196,022
Other comprehensive loss:
Unrealized losses on available-for-sale securities:
Unrealized holding losses	(104,754)		24,495		(80,259)		(429,607)		101,269		(328,338)
Reclassification of securities from available-for-sale to held-to-maturity	—		—		—		87,444		(20,770)		66,674
Realized losses included in net income	—		—		—		3,688		(979)		2,709
Net unrealized losses	(104,754)		24,495		(80,259)		(338,475)		79,520		(258,955)
Unrealized losses on held-to-maturity securities transferred from available-for-sale:
Reclassification of unrealized losses	—		—		—		(87,444)		20,770		(66,674)
Amortization of unrealized losses	4,473		(1,073)		3,400		6,242		(1,495)		4,747
Net activity	4,473		(1,073)		3,400		(81,202)		19,275		(61,927)
Derivative instruments designated as cash flow hedges:
Unrealized holding gains on derivatives	5,034		(1,286)		3,748		12,914		(3,299)		9,615
Losses on derivative instruments realized in net income	48		(12)		36		295		(75)		220
Net cash flow hedge activity	5,082		(1,298)		3,784		13,209		(3,374)		9,835
Amortization of defined benefit pension plan net periodic pension cost components	169		(43)		126		510		(130)		380
Total other comprehensive loss	(95,030)		22,081		(72,949)		(405,958)		95,291		(310,667)
Comprehensive income (loss)	$	8,519	$	(307)	$	8,212	$	(156,038)	$	41,393	$	(114,645)
2021
Net income	$	95,419	$	(21,603)	$	73,816	$	281,540	$	(63,758)	$	217,782
Other comprehensive loss:
Unrealized losses on available-for-sale securities:
Unrealized holding losses	(18,915)		4,686		(14,229)		(58,882)		15,766		(43,116)
Realized gains included in net income	—		—		—		(41)		14		(27)
Net unrealized losses	(18,915)		4,686		(14,229)		(58,923)		15,780		(43,143)
Derivative instruments designated as cash flow hedges:
Unrealized holding gains on derivatives	431		(111)		320		3,475		(888)		2,587
Losses on derivative instruments realized in net income	153		(39)		114		444		(113)		331
Net cash flow hedge activity	584		(150)		434		3,919		(1,001)		2,918
Amortization of defined benefit pension plan net periodic pension cost components	260		(66)		194		782		(200)		582
Total other comprehensive loss	(18,071)		4,470		(13,601)		(54,222)		14,579		(39,643)
Comprehensive income	$	77,348	$	(17,133)	$	60,215	$	227,318	$	(49,179)	$	178,139

See accompanying notes to consolidated financial statements (unaudited).

7

UNITED COMMUNITY BANKS, INC.

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)

(in thousands except share data) 

	Shares of Common Stock	Preferred Stock		Common Stock		Common Stock Issuable		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance at June 30, 2021	86,664,894	$	96,422	$	86,665	$	10,650	$	1,636,875	$	244,006	$	11,668	$	2,086,286
Net income										73,816				73,816
Other comprehensive loss												(13,601)		(13,601)
Common stock issued for acquisitions	132,299			133				4,268						4,401
Purchases of common stock	(342,744)			(343)				(9,657)						(10,000)
Preferred stock dividends										(1,719)				(1,719)
Common stock dividends ($0.20 per share)										(17,600)				(17,600)
Impact of equity-based compensation awards	101,093			101		345		136						582
Impact of other United sponsored equity plans	3,105			3		103		87						193
Balance at September 30, 2021	86,558,647	$	96,422	$	86,559	$	11,098	$	1,631,709	$	298,503	$	(1,933)	$	2,122,358
Balance at June 30, 2022	106,033,960	$	96,422	$	106,034	$	11,448	$	2,304,608	$	396,970	$	(264,194)	$	2,651,288
Net income										81,161				81,161
Other comprehensive loss												(72,949)		(72,949)
Preferred stock dividends										(1,719)				(1,719)
Common stock dividends ($0.22 per share)										(23,624)				(23,624)
Impact of equity-based compensation awards	126,400			126		389		(168)						347
Impact of other United sponsored equity plans	2,501			3		129		74						206
Balance at September 30, 2022	106,162,861	$	96,422	$	106,163	$	11,966	$	2,304,514	$	452,788	$	(337,143)	$	2,634,710
Balance at December 31, 2020	86,675,279	$	96,422	$	86,675	$	10,855	$	1,638,999	$	136,869	$	37,710	$	2,007,530
Net income										217,782				217,782
Other comprehensive loss												(39,643)		(39,643)
Common stock issued for acquisitions	132,299			133				4,268						4,401
Purchases of common stock	(492,744)			(493)				(14,608)						(15,101)
Preferred stock dividends										(5,157)				(5,157)
Common stock dividends ($0.58 per share)										(50,991)				(50,991)
Impact of equity-based compensation awards	171,938			172		992		1,706						2,870
Impact of other United sponsored equity plans	71,875			72		(749)		1,344						667
Balance at September 30, 2021	86,558,647	$	96,422	$	86,559	$	11,098	$	1,631,709	$	298,503	$	(1,933)	$	2,122,358
Balance at December 31, 2021	89,349,826	$	96,422	$	89,350	$	11,288	$	1,721,007	$	330,654	$	(26,476)	$	2,222,245
Net income										196,022				196,022
Other comprehensive loss												(310,667)		(310,667)
Impact of acquisitions	16,571,545			16,571				579,805						596,376
Preferred stock dividends										(5,157)				(5,157)
Common stock dividends ($0.64 per share)										(68,731)				(68,731)
Impact of equity-based compensation awards	175,843			176		1,843		2,885						4,904
Impact of other United sponsored equity plans	65,647			66		(1,165)		817						(282)
Balance at September 30, 2022	106,162,861	$	96,422	$	106,163	$	11,966	$	2,304,514	$	452,788	$	(337,143)	$	2,634,710

See accompanying notes to consolidated financial statements (unaudited).

8

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Nine Months Ended September 30,
	2022		2021
Operating activities:
Net income	$	196,022	$	217,782
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	34,707		(8,082)
Provision for (release of) credit losses	44,082		(36,903)
Stock based compensation	6,649		4,814
Deferred income tax expense	6,063		21,290
Securities losses (gains), net	3,688		(41)
Gains from sales of other loans, net	(9,226)		(7,506)
Changes in assets and liabilities:
Other assets	(2,072)		32,952
Accrued expenses and other liabilities	92,084		21,597
Loans held for sale	136,405		37,009
Net cash provided by operating activities	508,402		282,912
Investing activities:
Debt securities held-to-maturity:
Proceeds from maturities and calls	140,253		51,770
Purchases	(326,494)		(716,399)
Debt securities available-for-sale:
Proceeds from sales	281,521		103,012
Proceeds from maturities and calls	493,848		709,435
Purchases	(1,665,466)		(1,909,879)
Net (increase) decrease in loans	(772,740)		234,855
Equity investments, outflows	(29,685)		(12,664)
Equity investments, inflows	17,336		7,007
Proceeds from sales of premises and equipment	4,846		2,272
Purchases of premises and equipment	(26,300)		(19,733)
Net cash received in (paid for) acquisition	35,243		(9,484)
Proceeds from sale of other real estate and repossessed assets	2,178		2,404
Other investing outflows	—		(210)
Other investing inflows	1,819		767
Net cash used in investing activities	(1,843,641)		(1,556,847)
Financing activities:
Net (decrease) increase in deposits	(423,750)		1,634,947
Repayment of long-term debt	—		(80,632)
Proceeds from FHLB advances	—		10,000
Repayment of FHLB advances	—		(10,000)
Repurchase of common stock	—		(15,101)
Cash dividends on common stock	(63,256)		(49,313)
Cash dividends on preferred stock	(5,157)		(5,157)
Other financing inflows	560		406
Other financing outflows	(7,648)		(2,041)
Net cash (used in) provided by financing activities	(499,251)		1,483,109
Net change in cash and cash equivalents	(1,834,490)		209,174
Cash and cash equivalents, beginning of period	2,318,510		1,608,619
Cash and cash equivalents, end of period	$	484,020	$	1,817,793

See accompanying notes to consolidated financial statements (unaudited). 

9

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 1 – Basis of Presentation

United’s accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its 2021 10-K.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in United’s 2021 10-K.

Note 2 – Accounting Standards Updates and Recently Adopted Standards

Recently Adopted Standards

In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments. The update amends the lease classification requirements for lessors to align them with practice under the former lease accounting standard. Specifically, lessors should classify a lease with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. United adopted this update as of January 1, 2022, with no material impact on the consolidated financial statements.

Recently Issued Standards

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. The update expands the current last-of-layer method to a portfolio layer method which allows multiple hedged layers of a single closed portfolio and non-prepayable financial assets. In addition, the update specifies that eligible hedging instruments may include spot-starting or forward-starting swaps and that the number of hedged layers corresponds with the number of hedges designated. Finally, the update provides additional guidance on the accounting for and disclosure of hedge basis adjustments. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The update eliminates the previous accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The update also requires that an entity disclose current-period gross charge-offs by year of origination. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account and, therefore, is not considered in measuring fair value. For public entities, this guidance is effective for fiscal years beginning after December 15, 2023. United does not expect the new guidance to have a material impact on the consolidated financial statements.

10

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 3 – Supplemental Cash Flow Information

The supplemental schedule of significant non-cash investing and financing activities for the nine months ended September 30, 2022 and 2021 is as follows (in thousands).

	Nine Months Ended September 30,
	2022		2021
Significant non-cash investing and financing transactions:
Transfers of loans to repossessed and foreclosed properties	$	2,566	$	1,712
Unsettled securities purchases	—		3,977
Transfers of AFS securities to HTM securities	1,288,982		—
Right-of-use assets obtained in exchange for lease liabilities	9,035		1,543
Acquisitions:
Assets acquired	3,254,173		22,823
Liabilities assumed	2,657,173		1,103
Net assets acquired	597,000		21,720
Common stock issued and options converted	596,376		4,401
Accrued purchase price and contingent consideration	—		7,700

11

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 4 – Acquisitions

Acquisition of Reliant

On January 1, 2022, United acquired all of the outstanding common stock of Reliant in a stock transaction. Reliant operated a 25-branch network primarily located in Middle Tennessee. United’s operating results for the three and nine months ended September 30, 2022 include the operating results of the acquired business for the period subsequent to the acquisition date of January 1, 2022.

The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below (in thousands). 

Reliant
	Fair Value Recorded by United (1)
		January 1, 2022
	Assets
	Cash and cash equivalents	$	62,867
	Debt securities	249,107
	Loans held for sale	116,406
	Loans held for investment	2,320,737
	Premises and equipment	35,631
	Bank-owned life insurance	78,170
	Accrued interest receivable	12,027
	Net deferred tax asset	5,793
	Core deposit intangible	14,500
	Other assets	59,768
	Total assets acquired	$	2,955,006
	Liabilities
	Deposits	$	2,504,823
	Short-term borrowings	27,000
	Long-term debt	76,730
	Other liabilities	48,620
	Total liabilities assumed	2,657,173
	Total identifiable net assets	297,833
	Consideration transferred
	Cash	624
	Common stock issued (16,571,545 shares)	595,581
	Options converted	795
	Total fair value of consideration transferred	597,000
	Goodwill	$	299,167

(1) Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Goodwill represents the intangible value of Reliant’s business and reputation within the markets it served and is not expected to be deductible for income tax purposes. The Reliant core deposit intangible will be amortized over its expected useful life of 10 years using the sum-of-the-years-digits method.

12

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table presents additional information related to the acquired Reliant loan portfolio at the acquisition date (in thousands).

	January 1, 2022
PCD loans:
Par value	$	258,462
ACL at acquisition	(12,737)
Non-credit discount	(3,294)
Purchase price	$	242,431
Non-PCD loans:
Fair value	$	2,078,306
Gross contractual amounts receivable	2,355,205
Estimate of contractual cash flows not expected to be collected	25,990

Pro forma information

The following table discloses the impact of the Reliant acquisition since the date of acquisition. The table also presents certain pro forma information as if Reliant had been acquired on January 1, 2021 and FinTrust had been acquired January 1, 2020. These results combine the historical results of the acquired entity with United’s consolidated statement of income. Adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity; however pro forma financial results presented are not necessarily indicative of what would have occurred had the acquisition taken place in earlier years.

Merger-related costs from the Reliant acquisition of $760,000 and $14.8 million have been excluded from the three and nine months ended September 30, 2022 pro forma information presented below and included in the three and nine months ended September 30, 2021 pro forma information presented below. Merger-related costs from the FinTrust acquisition of $262,000 and $515,000, respectively, have been excluded from the three and nine months ended September 30, 2021 pro forma information presented below. The actual results and pro forma information were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	Revenue		Net Income		Revenue		Net Income
2022
Actual Reliant results included in statement of income since acquisition date	$	29,618	$	16,516	$	72,685	$	32,931
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021	216,171		81,681		618,636		219,010
2021
Actual FinTrust results included in statement of income since acquisition date	$	2,017	$	(49)	$	2,017	$	(49)
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021 and FinTrust had been acquired January 1, 2020	$	232,667	$	86,576	$	672,405	$	233,053

Announced Acquisition of Progress

On May 4, 2022, United announced an agreement to acquire Progress Financial Corporation and its wholly-owned subsidiary, Progress Bank & Trust, collectively referred to as “Progress”. Progress is headquartered in Huntsville, Alabama, and operates 14 offices in high-growth southeastern markets, including Huntsville, Birmingham, Daphne and Tuscaloosa in Alabama and the Florida Panhandle. As of September 30, 2022, Progress had total assets of $1.74 billion, total loans of $1.41 billion, and total deposits of $1.50 billion. The merger, which is subject to regulatory approval and other customary conditions, is expected to close in the first quarter of 2023.

13

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 5 – Investment Securities

During the first nine months of 2022, United transferred AFS debt securities to HTM with a fair value on the transfer date of $1.29 billion, which included unrealized losses recorded in AOCI totaling $87.4 million. No securities were transferred from AFS to HTM during the third quarter of 2022. Transfer date unrealized losses are amortized and reclassified out of AOCI as a yield adjustment, which is offset by discount accretion of the transferred HTM securities. Amortization of transfer date unrealized losses and discount accretion are recognized over the remaining life of the securities.

The amortized cost basis, unrealized gains and losses and fair value of HTM debt securities as of the dates indicated are as follows (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	19,826	$	—	$	2,573	$	17,253
U.S. Government agencies & GSEs	99,620		—		18,275		81,345
State and political subdivisions	301,520		45		70,180		231,385
Residential MBS, Agency & GSEs	1,519,094		14		227,307		1,291,801
Commercial MBS, Agency & GSEs	721,345		—		114,360		606,985
Supranational entities	15,000		—		2,609		12,391
Total	$	2,676,405	$	59	$	435,304	$	2,241,160
As of December 31, 2021
U.S. Treasuries	$	19,803	$	20	$	—	$	19,823
U.S. Government agencies & GSEs	70,180		—		1,121		69,059
State and political subdivisions	257,688		4,341		4,080		257,949
Residential MBS, Agency & GSEs	381,641		2,021		3,687		379,975
Commercial MBS, Agency & GSEs	411,786		4,106		8,915		406,977
Supranational entities	$	15,000	$	21	$	—	$	15,021
Total	$	1,156,098	$	10,509	$	17,803	$	1,148,804

14

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The amortized cost basis, unrealized gains and losses, and fair value of AFS debt securities as of the dates indicated are presented below (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	194,301	$	—	$	15,828	$	178,473
U.S. Government agencies & GSEs	272,492		655		17,121		256,026
State and political subdivisions	348,099		—		32,597		315,502
Residential MBS, Agency & GSEs	1,658,924		6		161,282		1,497,648
Residential MBS, Non-agency	382,185		—		22,943		359,242
Commercial MBS, Agency & GSEs	747,238		584		74,751		673,071
Commercial MBS, Non-agency	31,676		—		1,144		30,532
Corporate bonds	252,486		59		26,635		225,910
Asset-backed securities	333,665		10		7,193		326,482
Total	$	4,221,066	$	1,314	$	359,494	$	3,862,886
As of December 31, 2021
U.S. Treasuries	$	218,027	$	1,661	$	2,168	$	217,520
U.S. Government agencies & GSEs	189,855		605		3,428		187,032
State and political subdivisions	263,269		15,237		2,662		275,844
Residential MBS, Agency & GSEs	2,079,700		9,785		28,521		2,060,964
Residential MBS, Non-agency	81,925		2,249		4		84,170
Commercial MBS, Agency & GSEs	870,563		2,974		16,156		857,381
Commercial MBS, Non-agency	15,202		1,268		—		16,470
Corporate bonds	194,164		814		1,812		193,166
Asset-backed securities	603,824		2,000		1,547		604,277
Total	$	4,516,529	$	36,593	$	56,298	$	4,496,824

Securities with a carrying value of $1.96 billion and $1.46 billion were pledged, primarily to secure public deposits, at September 30, 2022 and December 31, 2021, respectively.

 The following table summarizes HTM debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	17,253	$	2,573	$	—	$	—	$	17,253	$	2,573
U.S. Government agencies & GSEs	37,829		8,757		43,516		9,518		81,345		18,275
State and political subdivisions	127,575		32,375		96,164		37,805		223,739		70,180
Residential MBS, Agency & GSEs	650,062		105,555		640,314		121,752		1,290,376		227,307
Commercial MBS, Agency & GSEs	297,445		43,092		309,539		71,268		606,984		114,360
Supranational entities	12,391		2,609		—		—		12,391		2,609
Total unrealized loss position	$	1,142,555	$	194,961	$	1,089,533	$	240,343	$	2,232,088	$	435,304
As of December 31, 2021
U.S. Government agencies & GSEs	$	64,658	$	888	$	4,401	$	233	$	69,059	$	1,121
State and political subdivisions	131,128		3,590		9,006		490		140,134		4,080
Residential MBS, Agency & GSEs	289,132		3,687		—		—		289,132		3,687
Commercial MBS, Agency & GSEs	314,049		8,540		10,384		375		324,433		8,915
Total unrealized loss position	$	798,967	$	16,705	$	23,791	$	1,098	$	822,758	$	17,803

15

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table summarizes AFS debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	92,422	$	2,882	$	86,051	$	12,946	$	178,473	$	15,828
U.S. Government agencies & GSEs	117,567		4,819		60,251		12,302		177,818		17,121
State and political subdivisions	257,976		17,220		55,291		15,377		313,267		32,597
Residential MBS, Agency & GSEs	1,213,430		119,863		282,679		41,419		1,496,109		161,282
Residential MBS, Non-agency	359,242		22,943		—		—		359,242		22,943
Commercial MBS, Agency & GSEs	367,162		19,548		278,170		55,203		645,332		74,751
Commercial MBS, Non-agency	30,532		1,144		—		—		30,532		1,144
Corporate bonds	170,581		18,944		52,727		7,691		223,308		26,635
Asset-backed securities	187,039		2,640		108,353		4,553		295,392		7,193
Total unrealized loss position	$	2,795,951	$	210,003	$	923,522	$	149,491	$	3,719,473	$	359,494
As of December 31, 2021
U.S. Treasuries	$	111,606	$	2,168	$	—	$	—	$	111,606	$	2,168
U.S. Government agencies & GSEs	132,893		2,591		20,093		837		152,986		3,428
State and political subdivisions	69,302		2,581		3,148		81		72,450		2,662
Residential MBS, Agency & GSEs	1,534,744		25,799		74,481		2,722		1,609,225		28,521
Residential MBS, Non-agency	12,608		4		—		—		12,608		4
Commercial MBS, Agency & GSEs	582,235		13,098		66,014		3,058		648,249		16,156
Corporate bonds	149,246		1,811		16		1		149,262		1,812
Asset-backed securities	195,164		1,546		571		1		195,735		1,547
Total unrealized loss position	$	2,787,798	$	49,598	$	164,323	$	6,700	$	2,952,121	$	56,298

At September 30, 2022, there were 755 AFS debt securities and 326 HTM debt securities that were in an unrealized loss position. United does not intend to sell nor does it believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at September 30, 2022 were primarily attributable to changes in interest rates.

At September 30, 2022 and December 31, 2021, estimated credit losses and, thus, the related ACL on HTM debt securities were 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 was recorded on the HTM portfolio at September 30, 2022 or December 31, 2021. In addition, based on the assessments performed at September 30, 2022 and December 31, 2021, there was no ACL required related to the AFS portfolio.

The following table presents accrued interest receivable for the periods indicated on HTM and AFS debt securities (in thousands), which was excluded from the estimate of credit losses.

	Accrued Interest Receivable
	September 30, 2022		December 31, 2021
HTM	$	6,135	$	3,596
AFS	13,232		9,868

16

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The amortized cost and fair value of AFS and HTM debt securities at September 30, 2022, by contractual maturity, are presented in the following table (in thousands). Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. 

	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year:
U.S. Treasuries	$	80,116	$	79,266	$	—	$	—
U.S. Government agencies & GSEs	174		172		—		—
State and political subdivisions	15,002		14,990		5,200		5,201
Corporate bonds	2,732		2,680		—		—
	98,024		97,108		5,200		5,201
1 to 5 years:
U.S. Treasuries	99,248		86,295		—		—
U.S. Government agencies & GSEs	38,672		34,652		—		—
State and political subdivisions	46,320		44,682		14,207		14,067
Corporate bonds	164,771		149,932		—		—
	349,011		315,561		14,207		14,067
5 to 10 years:
U.S. Treasuries	14,937		12,912		19,826		17,253
U.S. Government agencies & GSEs	77,779		69,039		53,505		45,109
State and political subdivisions	123,790		110,478		31,603		26,712
Corporate bonds	84,190		72,457		—		—
Supranational entities	—		—		15,000		12,391
	300,696		264,886		119,934		101,465
More than 10 years:
U.S. Government agencies & GSEs	155,867		152,163		46,115		36,236
State and political subdivisions	162,987		145,352		250,510		185,405
Corporate bonds	793		841		—		—
	319,647		298,356		296,625		221,641
Debt securities not due at a single maturity date:
Asset-backed securities	333,665		326,482		—		—
Residential MBS	2,041,109		1,856,890		1,519,094		1,291,801
Commercial MBS	778,914		703,603		721,345		606,985
Total	$	4,221,066	$	3,862,886	$	2,676,405	$	2,241,160

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes AFS securities sales activity for the three and nine months ended September 30, 2022 and 2021 (in thousands).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Proceeds from sales	$	—	$	24,901	$	281,521	$	103,012
Gross realized gains	$	—	$	—	$	1,009	$	641
Gross realized losses	—		—		(4,697)		(600)
Securities gains (losses), net	$	—	$	—	$	(3,688)	$	41
Income tax expense (benefit) attributable to sales	$	—	$	—	$	(979)	$	14

17

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 6 – Loans and Leases and Allowance for Credit Losses

Major classifications of the loan and lease portfolio (collectively referred to as the “loan portfolio” or “loans”) are summarized as of the dates indicated as follows (in thousands).

	September 30, 2022		December 31, 2021
Owner occupied commercial real estate	$	2,700,345	$	2,321,685
Income producing commercial real estate	3,298,847		2,600,858
Commercial & industrial (1)	2,237,591		1,910,162
Commercial construction	1,514,145		1,014,830
Equipment financing	1,280,856		1,083,021
Total commercial	11,031,784		8,930,556
Residential mortgage	2,149,490		1,637,885
HELOC	832,140		694,034
Residential construction	422,737		359,815
Manufactured housing	300,874		—
Consumer	145,459		138,056
Total loans	14,882,484		11,760,346
Less allowance for credit losses - loans	(148,502)		(102,532)
Loans, net	$	14,733,982	$	11,657,814

(1) Commercial and industrial loans as of September 30, 2022 and December 31, 2021 included $2.44 million and $88.3 million of PPP loans, respectively.

Accrued interest receivable related to loans totaled $43.1 million and $28.5 million at September 30, 2022 and December 31, 2021, respectively, and was reported in other assets on the consolidated balance sheets. Accrued interest receivable was excluded from the estimate of credit losses.

At September 30, 2022 and December 31, 2021, the loan portfolio was subject to blanket pledges on certain qualifying loan types with the FHLB and FRB to secure contingent funding sources.

The following table presents the amortized cost of loans held for investment that were sold in the periods indicated (in thousands). The gains on these loan sales were included in noninterest income on the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Guaranteed portion of SBA/USDA loans	$	20,405	$	13,484	$	87,867	$	57,132
Equipment financing receivables	21,557		19,273		65,534		39,240
Total	$	41,962	$	32,757	$	153,401	$	96,372

At September 30, 2022 and December 31, 2021, equipment financing receivables included leases of $44.0 million and $37.7 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	September 30, 2022		December 31, 2021
Minimum future lease payments receivable	$	47,177	$	39,962
Estimated residual value of leased equipment	3,046		3,216
Initial direct costs	744		669
Security deposits	(472)		(687)
Unearned income	(6,482)		(5,432)
Net investment in leases	$	44,013	$	37,728

18

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Minimum future lease payments expected to be received from equipment financing lease contracts as of September 30, 2022 were as follows (in thousands): 

Year
Remainder of 2022	$	4,521
2023	16,041
2024	11,714
2025	8,237
2026	4,891
Thereafter	1,773
Total	$	47,177

Nonaccrual and Past Due Loans HFI

The following table presents the aging of the amortized cost basis in loans by aging category and accrual status as of the dates indicated (in thousands). Past due status is based on contractual terms of the loan. The accrual of interest is generally discontinued when a loan becomes 90 days past due.

	Accruing
	Current Loans		Loans Past Due
			30 - 59 Days		60 - 89 Days		> 90 Days		Nonaccrual Loans		Total Loans
As of September 30, 2022
Owner occupied commercial real estate	$	2,696,495	$	2,597	$	376	$	—	$	877	$	2,700,345
Income producing commercial real estate	3,292,966		3,170		48		—		2,663		3,298,847
Commercial & industrial	2,224,863		1,383		213		24		11,108		2,237,591
Commercial construction	1,513,544		451		—		—		150		1,514,145
Equipment financing	1,274,342		1,918		1,398		—		3,198		1,280,856
Total commercial	11,002,210		9,519		2,035		24		17,996		11,031,784
Residential mortgage	2,136,977		1,703		386		—		10,424		2,149,490
HELOC	829,400		1,393		196		—		1,151		832,140
Residential construction	422,274		92		267		—		104		422,737
Manufactured housing	292,394		3,589		704		—		4,187		300,874
Consumer	145,166		223		49		4		17		145,459
Total loans	$	14,828,421	$	16,519	$	3,637	$	28	$	33,879	$	14,882,484
As of December 31, 2021
Owner occupied commercial real estate	$	2,318,944	$	27	$	—	$	—	$	2,714	$	2,321,685
Income producing commercial real estate	2,593,124		146		—		—		7,588		2,600,858
Commercial & industrial	1,903,730		584		419		—		5,429		1,910,162
Commercial construction	1,014,211		—		276		—		343		1,014,830
Equipment financing	1,079,180		1,415		685		—		1,741		1,083,021
Total commercial	8,909,189		2,172		1,380		—		17,815		8,930,556
Residential mortgage	1,622,754		1,583		235		—		13,313		1,637,885
HELOC	691,814		920		88		—		1,212		694,034
Residential construction	358,741		654		—		—		420		359,815
Consumer	137,564		421		19		—		52		138,056
Total loans	$	11,720,062	$	5,750	$	1,722	$	—	$	32,812	$	11,760,346

19

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table presents nonaccrual loans held for investment by loan class for the periods indicated (in thousands). 

	Nonaccrual Loans
	September 30, 2022						December 31, 2021
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	537	$	340	$	877	$	2,141	$	573	$	2,714
Income producing commercial real estate	2,263		400		2,663		6,873		715		7,588
Commercial & industrial	10,061		1,047		11,108		3,715		1,714		5,429
Commercial construction	47		103		150		—		343		343
Equipment financing	449		2,749		3,198		—		1,741		1,741
Total commercial	13,357		4,639		17,996		12,729		5,086		17,815
Residential mortgage	2,239		8,185		10,424		3,126		10,187		13,313
HELOC	300		851		1,151		219		993		1,212
Residential construction	67		37		104		280		140		420
Manufactured housing	—		4,187		4,187		—		—		—
Consumer	1		16		17		6		46		52
Total	$	15,964	$	17,915	$	33,879	$	16,360	$	16,452	$	32,812

Risk Ratings 

United categorizes commercial loans, with the exception of equipment financing receivables, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current industry and economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continual basis. United uses the following definitions for its risk ratings:

Pass. Loans in this category are considered to have a low probability of default and do not meet the criteria of the risk categories below.

Special Mention. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment.

Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged off.

Equipment Financing Receivables and Consumer Purpose Loans. United applies a pass / fail grading system to all equipment financing receivables and consumer purpose loans. Under this system, loans that are on nonaccrual status, become past due 90 days, or are in bankruptcy and 30 or more days past due are classified as “fail” and all other loans are classified as “pass”. For reporting purposes, loans in these categories that are classified as “fail” are reported as substandard and all other loans are reported as pass.

20

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	537,628	$	690,355	$	630,238	$	217,689	$	132,341	$	297,665	$	107,380	$	5,948	$	2,619,244
Income producing commercial real estate	659,896		810,374		770,008		301,271		178,480		302,937		43,144		9,127		3,075,237
Commercial & industrial	391,665		442,865		199,960		142,415		126,773		80,396		691,597		18,923		2,094,594
Commercial construction	497,066		478,007		284,335		113,523		13,002		21,633		72,161		1,343		1,481,070
Equipment financing	535,508		411,108		187,297		108,817		31,409		2,596		—		—		1,276,735
Total commercial	2,621,763		2,832,709		2,071,838		883,715		482,005		705,227		914,282		35,341		10,546,880
Residential mortgage	640,179		762,959		339,633		94,368		58,005		237,641		8		3,120		2,135,913
HELOC	—		—		—		—		—		—		807,985		22,482		830,467
Residential construction	259,062		144,816		6,233		1,895		1,637		8,474		65		375		422,557
Manufactured housing	58,475		56,252		50,323		35,847		32,026		62,615		—		—		295,538
Consumer	58,222		34,549		18,008		5,420		2,314		856		25,869		129		145,367
	3,637,701		3,831,285		2,486,035		1,021,245		575,987		1,014,813		1,748,209		61,447		14,376,722
Special Mention
Owner occupied commercial real estate	6,540		7,663		5,262		9,585		4,217		5,164		3,065		2,964		44,460
Income producing commercial real estate	46,138		10,285		45,578		20,106		21,798		13,318		1		—		157,224
Commercial & industrial	16,279		32,282		5,751		847		1,337		250		34,169		297		91,212
Commercial construction	530		35		62		13,319		4,917		29		—		—		18,892
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Substandard
Owner occupied commercial real estate	6,801		529		4,016		8,654		1,210		14,184		210		1,037		36,641
Income producing commercial real estate	34,352		1,779		1,368		4,621		13,292		10,519		391		64		66,386
Commercial & industrial	5,194		9,958		2,247		5,696		10,935		1,273		16,035		447		51,785
Commercial construction	148		42		47		3		3,925		9,772		—		246		14,183
Equipment financing	646		1,044		1,141		696		576		18		—		—		4,121
Total commercial	47,141		13,352		8,819		19,670		29,938		35,766		16,636		1,794		173,116
Residential mortgage	1,401		1,167		1,361		1,861		2,483		5,145		—		159		13,577
HELOC	—		—		—		—		—		—		24		1,649		1,673
Residential construction	2		—		—		21		4		153		—		—		180
Manufactured housing	424		672		739		690		953		1,858		—		—		5,336
Consumer	—		35		15		2		32		8		—		—		92
	48,968		15,226		10,934		22,244		33,410		42,930		16,660		3,602		193,974
Total	$	3,756,156	$	3,896,776	$	2,553,622	$	1,087,346	$	641,666	$	1,076,504	$	1,802,104	$	68,310	$	14,882,484

21

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of December 31, 2021	2021		2020		2019		2018		2017		Prior
Pass
Owner occupied commercial real estate	$	643,151	$	674,124	$	278,702	$	153,233	$	139,584	$	267,460	$	68,354	$	17,150	$	2,241,758
Income producing commercial real estate	668,322		678,487		333,911		221,218		165,563		219,459		41,157		11,830		2,339,947
Commercial & industrial	638,567		270,150		178,944		136,281		50,567		72,904		514,750		4,361		1,866,524
Commercial construction	378,695		303,154		149,740		40,625		22,983		13,206		12,628		1,673		922,704
Equipment financing	563,618		271,913		167,904		63,254		13,145		903		—		—		1,080,737
Total commercial	2,892,353		2,197,828		1,109,201		614,611		391,842		573,932		636,889		35,014		8,451,670
Residential mortgage	781,007		370,092		108,091		64,346		71,552		221,131		9		3,915		1,620,143
HELOC	—		—		—		—		—		—		676,545		14,994		691,539
Residential construction	325,111		16,301		2,802		2,278		3,144		9,352		—		33		359,021
Consumer	57,530		29,218		10,757		5,137		1,439		1,355		32,312		111		137,859
	4,056,001		2,613,439		1,230,851		686,372		467,977		805,770		1,345,755		54,067		11,260,232
Special Mention
Owner occupied commercial real estate	7,772		2,979		16,639		4,374		6,007		2,641		248		286		40,946
Income producing commercial real estate	64,139		27,875		21,875		22,292		18,415		21,880		—		—		176,476
Commercial & industrial	1,037		1,831		2,740		597		273		303		2,242		—		9,023
Commercial construction	14,283		16,237		13,149		22,479		11,766		52		—		—		77,966
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Substandard
Owner occupied commercial real estate	11,987		1,049		4,216		3,712		5,829		11,088		—		1,100		38,981
Income producing commercial real estate	15,485		12,618		3,779		29,212		6,726		16,531		—		84		84,435
Commercial & industrial	2,741		1,615		5,284		12,685		1,232		5,863		4,326		869		34,615
Commercial construction	3,464		157		272		11		9,750		255		—		251		14,160
Equipment financing	428		590		676		503		84		3		—		—		2,284
Total commercial	34,105		16,029		14,227		46,123		23,621		33,740		4,326		2,304		174,475
Residential mortgage	3,339		1,585		2,813		3,229		1,205		4,744		—		827		17,742
HELOC	—		—		—		—		—		—		329		2,166		2,495
Residential construction	407		—		30		51		—		306		—		—		794
Consumer	37		16		22		26		22		50		3		21		197
	37,888		17,630		17,092		49,429		24,848		38,840		4,658		5,318		195,703
Total	$	4,181,120	$	2,679,991	$	1,302,346	$	785,543	$	529,286	$	869,486	$	1,352,903	$	59,671	$	11,760,346

22

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Troubled Debt Restructurings

As of September 30, 2022 and December 31, 2021, United had TDRs totaling $42.9 million and $52.4 million, respectively. Loans modified under the terms of a TDR during the three and nine months ended September 30, 2022 and 2021 are presented in the following table. In addition, the table presents loans modified under the terms of a TDR that defaulted (became 90 days or more delinquent or otherwise in default of modified terms) during the periods presented and were initially restructured within one year prior to default (dollars in thousands).

	New TDRs									TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted
		Post-Modification Amortized Cost by Type of Modification
	Number of  Contracts	Rate   Reduction		Structure		Other		Total		Number of   Contracts	Amortized Cost
Three Months Ended September 30, 2022
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	1	—		715		—		715		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		2,103		—		2,103		1	30
Total commercial	12	—		2,818		—		2,818		1	30
Residential mortgage	4	—		304		—		304		2	400
HELOC	—	—		—		—		—		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	16	$	—	$	3,122	$	—	$	3,122	3	$	430
Nine Months Ended September 30, 2022
Owner occupied commercial real estate	1	$	—	$	112	$	—	$	112	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	2	—		1,118		—		1,118		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	38	—		6,952		—		6,952		10	438
Total commercial	41	—		8,182		—		8,182		10	438
Residential mortgage	8	—		877		—		877		3	456
HELOC	7	—		1,242		6		1,248		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	56	$	—	$	10,301	$	6	$	10,307	13	$	894
Three Months Ended September 30, 2021
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	3	—		166		—		166		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		399		—		399		3	96
Total commercial	14	—		565		—		565		3	96
Residential mortgage	6	—		649		—		649		1	180
HELOC	—	—		—		—		—		1	43
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	20	$	—	$	1,214	$	—	$	1,214	5	$	319
Nine Months Ended September 30, 2021
Owner occupied commercial real estate	1	$	—	$	543	$	—	$	543	—	$	—
Income producing commercial real estate	3	—		—		1,697		1,697		—	—
Commercial & industrial	7	—		531		103		634		1	11
Commercial construction	1	—		309		—		309		—	—
Equipment financing	47	—		2,861		—		2,861		11	296
Total commercial	59	—		4,244		1,800		6,044		12	307
Residential mortgage	12	—		1,040		—		1,040		4	593
HELOC	—	—		—		—		—		2	92
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	71	$	—	$	5,284	$	1,800	$	7,084	18	$	992

23

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Allowance for Credit Losses

The ACL for loans represents management’s estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfunded commitments is included in other liabilities in the consolidated balance sheet.

At both September 30, 2022 and December 31, 2021, United used a one-year reasonable and supportable forecast period. Expected credit losses were estimated using a regression model for each segment based on historical data from peer banks combined with a third party vendor’s baseline economic forecast to predict the change in credit losses. These estimates were then combined with a starting value that was based on United’s recent default experience, with the results subject to a floor. At September 30, 2022, United applied qualitative adjustments to the model output for the income producing commercial real estate, commercial construction, HELOCs, residential mortgage and residential construction portfolios. With regard to income producing commercial real estate, the qualitative adjustments reflected continued credit concerns related to the senior care portfolio, elevated criticized loans relative to the pre-pandemic period and inflationary concerns related to the impact of rising rates on commercial real estate values. Qualitative adjustments for the other categories lowered the amount of required allowance due to management’s expectation with respect to the timing of deteriorating economic conditions in the forecast.

For periods beyond the reasonable and supportable forecast period of one year, United reverted to historical credit loss information on a straight line basis over two years. For all collateral types excluding residential mortgage and manufactured housing, United reverted to through-the-cycle average default rates using peer data from 2000 to 2017. For loans secured by residential mortgages and manufactured housing, the peer data was adjusted to account for the changes in lending practices designed to prevent the magnitude of losses observed during the mortgage crisis.

PPP loans were considered low risk assets due to the related 100% guarantee by the SBA and were therefore excluded from the calculation.

24

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table presents the balance and activity in the ACL by portfolio segment for the periods indicated (in thousands).

	Three Months Ended September 30,
	2022										2021
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	16,774	$	—	$	90	$	2,192	$	19,056	$	17,292	$	(443)	$	536	$	(3,241)	$	14,144
Income producing commercial real estate	33,284		(202)		26		(1,498)		31,610		30,967		(120)		75		(7,531)		23,391
Commercial & industrial	18,267		(373)		1,117		1,907		20,918		16,414		(320)		411		(262)		16,243
Commercial construction	16,062		—		(10)		1,902		17,954		9,180		—		123		(1,131)		8,172
Equipment financing	18,409		(1,987)		866		3,277		20,565		18,100		(1,165)		653		(288)		17,300
Residential mortgage	17,035		—		66		2,234		19,335		10,965		(127)		76		559		11,473
HELOC	7,487		(27)		129		884		8,473		6,357		(65)		167		(40)		6,419
Residential construction	2,086		—		109		109		2,304		1,918		—		37		(19)		1,936
Manufactured housing	6,614		(225)		5		958		7,352		—		—		—		—		—
Consumer	907		(1,010)		292		746		935		423		(611)		222		508		542
ACL - loans	136,925		(3,824)		2,690		12,711		148,502		111,616		(2,851)		2,300		(11,445)		99,620
ACL - unfunded commitments	16,117		—		—		2,681		18,798		10,844		—		—		411		11,255
Total ACL	$	153,042	$	(3,824)	$	2,690	$	15,392	$	167,300	$	122,460	$	(2,851)	$	2,300	$	(11,034)	$	110,875

	Nine Months Ended September 30,
	2022												2021
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	14,282	$	266	$	—	$	1,631	$	2,877	$	19,056	$	20,673	$	(1,503)	$	932	$	(5,958)	$	14,144
Income producing commercial real estate	24,156		4,366		(202)		432		2,858		31,610		41,737		(174)		304		(18,476)		23,391
Commercial & industrial	16,592		2,337		(4,978)		3,095		3,872		20,918		22,019		(4,017)		6,855		(8,614)		16,243
Commercial construction	9,956		2,857		(41)		548		4,634		17,954		10,952		(224)		618		(3,174)		8,172
Equipment financing	16,290		—		(4,644)		2,349		6,570		20,565		16,820		(4,411)		2,087		2,804		17,300
Residential mortgage	12,390		385		(53)		267		6,346		19,335		15,341		(342)		393		(3,919)		11,473
HELOC	6,568		60		(36)		565		1,316		8,473		8,417		(99)		386		(2,285)		6,419
Residential construction	1,847		1		—		208		248		2,304		764		(10)		140		1,042		1,936
Manufactured housing	—		2,438		(533)		14		5,433		7,352		—		—		—		—		—
Consumer	451		27		(2,544)		879		2,122		935		287		(1,435)		710		980		542
ACL - loans	102,532		12,737		(13,031)		9,988		36,276		148,502		137,010		(12,215)		12,425		(37,600)		99,620
ACL - unfunded commitments	10,992		—		—		—		7,806		18,798		10,558		—		—		697		11,255
Total ACL	$	113,524	$	12,737	$	(13,031)	$	9,988	$	44,082	$	167,300	$	147,568	$	(12,215)	$	12,425	$	(36,903)	$	110,875

(1) Represents the initial ACL related to PCD loans acquired in the Reliant transaction.

25

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 7 – Derivatives and Hedging Activities

The table below presents the fair value of derivative financial instruments, which are included in other assets and other liabilities on the consolidated balance sheet, as of the dates indicated (in thousands):

	September 30, 2022						December 31, 2021
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Derivative Asset		Derivative Liability				Derivative Asset		Derivative Liability
Derivatives designated as hedging instruments:
Cash flow hedge of subordinated debt	$	100,000	$	16,311	$	—	$	100,000	$	6,389	$	—
Cash flow hedge of trust preferred securities	20,000		—		—		20,000		—		—
Fair value hedge of brokered time deposits	—		—		—		10,000		—		—
Total	120,000		16,311		—		130,000		6,389		—
Derivatives not designated as hedging instruments:
Customer derivative positions	1,090,067		16		92,444		1,206,145		28,656		10,663
Dealer offsets to customer derivative positions	1,090,067		24,005		—		1,230,885		974		9,232
Risk participations	79,827		4		1		69,385		16		7
Mortgage banking - loan commitment	33,265		290		155		110,897		3,450		—
Mortgage banking - forward sales commitment	88,000		1,994		30		201,419		67		202
Bifurcated embedded derivatives	51,935		11,724		—		51,935		2,928		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		13,505		51,935		—		5,041
Total	2,485,096		38,033		106,135		2,922,601		36,091		25,145
Total derivatives	$	2,605,096	$	54,344	$	106,135	$	3,052,601	$	42,480	$	25,145
Total gross derivative instruments			$	54,344	$	106,135			$	42,480	$	25,145
Less: Amounts subject to master netting agreements			(230)		(230)				(694)		(694)
Less: Cash collateral received/pledged			(39,811)		(13,155)				(6,620)		(14,148)
Net amount			$	14,303	$	92,750			$	35,166	$	10,303

United clears certain derivatives centrally through the CME. CME rules legally characterize variation margin payments for centrally cleared derivatives as settlements of the derivatives’ exposure rather than as collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contracts that clear through the CME have an estimated fair value of zero.

Hedging Derivatives

Cash Flow Hedges of Interest Rate Risk 

United enters into cash flow hedges to mitigate exposure to the variability of future cash flows or other forecasted transactions. As of September 30, 2022 and December 31, 2021, United utilized interest rate caps and swaps to hedge the variability of cash flows due to changes in interest rates on certain of its variable-rate subordinated debt and trust preferred securities. United considers these derivatives to be highly effective at achieving offsetting changes in cash flows attributable to changes in interest rates. Therefore, changes in the fair value of these derivative instruments are recognized in OCI. Gains and losses related to changes in fair value are reclassified into earnings in the periods the hedged forecasted transactions occur. Losses representing amortization of the premium recorded on cash flow hedges, which is a component excluded from the assessment of effectiveness, are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Over the next twelve months, United expects to reclassify $2.34 million of gains from AOCI into earnings related to these agreements.

Fair Value Hedges of Interest Rate Risk 

United is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in interest rates. United uses interest rate derivatives to manage its exposure to changes in fair value on these instruments attributable to changes in interest rates. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. United includes the gain or loss on the hedged items in the same income statement line item as the offsetting loss or gain on the related derivatives.

26

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

At December 31, 2021, United had an interest rate swap that was designated as a fair value hedge of fixed-rate brokered time deposits. During the first quarter of 2022, the hedged brokered deposit and the associated swap matured. The swap involved the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of the agreements.

The table below presents the effect of derivatives in hedging relationships, all of which are interest rate contracts, on the consolidated statement of income for the periods indicated (in thousands). 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total interest expense presented in the consolidated statements of income	$	(14,113)	$	(6,636)	$	(29,855)	$	(23,547)
Effect of hedging relationships on interest expense:
Net income recognized on fair value hedges	—		43		28		167
Net expense recognized on cash flow hedges (1)	(48)		(153)		(295)		(444)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $119,000 for both the three months ended September 30, 2022 and 2021, and $353,000 for both the nine months ended September 30, 2022 and 2021.

Derivatives Not Designated as Hedging Instruments 

Customer derivative positions include swaps, caps, and collars between United and certain commercial loan customers with offsetting positions to dealers under a back-to-back program. In addition, United occasionally enters into credit risk participation agreements with counterparty banks to accept or transfer a portion of the credit risk related to interest rate swaps. The agreements, which are typically executed in conjunction with a participation in a loan with the same customer, allow customers to execute an interest rate swap with one bank while allowing for the distribution of the credit risk among participating members.

United also has three interest rate swap contracts that are not designated as hedging instruments but are economic hedges of market-linked brokered certificates of deposit. The market-linked brokered certificates of deposit contain embedded derivatives that are bifurcated from the host instruments and are marked to market through earnings. The fair value marks on the market-linked swaps and the bifurcated embedded derivatives tend to move in opposite directions with changes in 90-day LIBOR and therefore provide an economic hedge.

In addition, United originates certain residential mortgage loans with the intention of selling these loans. Between the time United enters into an interest-rate lock commitment to originate a residential mortgage loan that is to be held for sale and the time the loan is funded and eventually sold, United is subject to the risk of variability in market prices. United enters into forward sale agreements to mitigate risk and to protect the expected gain on the eventual loan sale. The commitments to originate residential mortgage loans and forward loan sales commitments are freestanding derivative instruments. Fair value adjustments on these derivative instruments are recorded within mortgage loan gains and other related fee income in the consolidated statements of income. 

The table below presents the gains and losses recognized in income on derivatives not designated as hedging instruments for the periods indicated (in thousands). 

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Customer derivatives and dealer offsets	Other noninterest income	$	471	$	599	$	1,685	$	2,551
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(108)		—		90		417
Mortgage banking derivatives	Mortgage loan revenue	1,047		(1,407)		8,297		(1,065)
Risk participations	Other noninterest income	(1)		—		93		—
		$	1,409	$	(808)	$	10,165	$	1,903

Credit-Risk-Related Contingent Features 

United manages its credit exposure on derivatives transactions by entering into a bilateral credit support agreement with each non-customer counterparty. The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements, including the minimum thresholds, vary by counterparty.

27

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

United’s agreements with each of its derivative counterparties provide that if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivative counterparties also include provisions that if not met, could result in United being declared in default. United has agreements with certain of its derivative counterparties that provide that if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would be required to settle its obligations under the agreements. Derivatives that are centrally cleared do not have credit-risk-related features that would require additional collateral if United’s credit rating were downgraded.

Note 8 – Goodwill and Other Intangible Assets

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands).  

	September 30, 2022		December 31, 2021
Core deposit intangible	$	46,900	$	38,192
Less: accumulated amortization	(24,690)		(25,870)
Net core deposit intangible	22,210		12,322
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(916)		(322)
Net customer relationship intangible	7,484		8,078
Total intangibles subject to amortization, net (1)	29,694		20,400
Goodwill	751,174		452,007
Total goodwill and other intangible assets, net	$	780,868	$	472,407

(1) As intangible assets become fully amortized, they are excluded from balances presented.

During the first quarter of 2022, as a result of the Reliant acquisition, United recorded a core deposit intangible of $14.5 million. See Note 4 for further detail.

The following is a summary of changes in the carrying amounts of goodwill (in thousands): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	751,174	$	367,809	$	452,007	$	367,809
Acquisitions	—		14,163		299,167		14,163
Balance, end of period (1)	$	751,174	$	381,972	$	751,174	$	381,972

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2021.

The estimated aggregate amortization expense for future periods for finite lived intangibles is as follows (in thousands):

Remainder of 2022	$	1,620
2023	5,903
2024	5,018
2025	4,051
2026	3,303
Thereafter	9,799
Total	$	29,694

28

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 9 - Long-term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021		Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate
2027 senior debentures	35,000		35,000		2015	2027	2025	5.500% through August 2025, 3-month LIBOR plus 3.71% thereafter
2030 senior debentures	100,000		100,000		2020	2030	2025	5.00% through June 2025, 3-month SOFR plus 4.87% thereafter
Total senior debentures	135,000		135,000
2028 subordinated debentures	100,000		100,000		2018	2028	2023	4.500% through January 2023, 3-month LIBOR plus 2.12% thereafter
2029 subordinated debentures	60,000		—		2019	2029	2024	5.125% until December 2024, 3-month SOFR plus 3.765% thereafter
Total subordinated debentures	160,000		100,000
Tidelands Statutory Trust I	8,248		8,248		2006	2036	*	3-month LIBOR plus 1.38%
Four Oaks Statutory Trust I	12,372		12,372		2006	2036	*	3-month LIBOR plus 1.35%
Community First Capital Trust I	3,093		—		2002	2032	*	Prime plus 0.50%
Community First Capital Trust II	5,155		—		2005	2035	*	3-month LIBOR plus 1.50%
Community First Capital Trust III	5,464		—		2007	2037	*	3-month LIBOR plus 3.00%
Total trust preferred securities	34,332		20,620
Less net discount	(4,817)		(8,260)
Total long-term debt	$	324,515	$	247,360

 * Indicates currently redeemable.

Interest is currently paid at least semiannually for all senior and subordinated debentures and trust preferred securities. All debt instruments reported above are obligations of the Holding Company.

During the first quarter of 2022, United assumed subordinated debentures and trust preferred securities with an acquisition date fair value of $76.7 million as part of the Reliant acquisition. See Note 4 for further detail.

Note 10 – Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, United uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). United has processes in place to review the significant valuation inputs and to reassess how the instruments are classified in the valuation framework.

Fair Value Hierarchy

Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access.

Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances when the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is

29

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.

Investment Securities

AFS debt securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include MBS issued by GSEs, municipal bonds, corporate debt securities, asset-backed securities and supranational entity securities and are valued based on observable inputs that include: quoted market prices for similar assets, quoted market prices that are not in an active market, or other inputs that are observable in the market and can be corroborated by observable market data for substantially the full term of the securities. Securities classified as Level 3 include those traded in less liquid markets and are valued based on estimates obtained from broker-dealers that are not directly observable or models which incorporate unobservable inputs.

Deferred Compensation Plan Assets and Liabilities

Included in other assets in the consolidated balance sheet are assets related to employee deferred compensation plans. The assets associated with these plans are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which mirrors the fair value of the invested assets and is included in other liabilities in the consolidated balance sheet.

Mortgage Loans Held for Sale

United has elected the fair value option for most of its newly originated mortgage loans held for sale in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the value of derivative instruments used to economically hedge them. The fair value of mortgage loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan, and are classified as Level 2. In connection with the Reliant acquisition, United acquired certain mortgage loans held for sale for which the fair value option was not elected; these loans are carried at the lower of aggregate cost or fair value.

Derivative Financial Instruments

United uses derivatives to manage interest rate risk. The valuation of these instruments is typically determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. United also uses best effort and mandatory delivery forward loan sale commitments to hedge risk in its mortgage lending business.

United incorporates CVAs as necessary to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, United has considered the effect of netting and any applicable credit enhancements, such as collateral postings, thresholds and guarantees.

Management has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. However, the CVAs associated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. Generally, management’s assessment of the significance of the CVAs has indicated that they are not a significant input to the overall valuation of the derivatives. In cases where management’s assessment indicates that the CVA is a significant input, the related derivative is disclosed as a Level 3 value.

Other derivatives classified as Level 3 include structured derivatives for which broker quotes, used as a key valuation input, were not observable. Risk participation agreements are classified as Level 3 instruments due to the incorporation of significant Level 3 inputs used to evaluate the probability of funding and the likelihood of customer default. Interest rate lock commitments, which relate to mortgage loan commitments, are categorized as Level 3 instruments as the fair value of these instruments is based on unobservable inputs for commitments that United does not expect to fund.

30

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Servicing Rights for Residential and SBA/USDA Loans

United recognizes servicing rights upon the sale of residential and SBA/USDA loans sold with servicing retained. Management has elected to carry these assets at fair value. Given the nature of these assets, the key valuation inputs are unobservable and management classifies these assets as Level 3.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

September 30, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	178,473	$	—	$	—	$	178,473
U.S. Government agencies & GSEs	—		256,026		—		256,026
State and political subdivisions	—		315,502		—		315,502
Residential MBS	—		1,856,890		—		1,856,890
Commercial MBS	—		703,603		—		703,603
Corporate bonds	—		223,684		2,226		225,910
Asset-backed securities	—		326,482		—		326,482
Equity securities with readily available fair values	12,934		1,068		—		14,002
Mortgage loans held for sale	—		19,888		—		19,888
Deferred compensation plan assets	10,904		—		—		10,904
Servicing rights for SBA/USDA loans	—		—		6,078		6,078
Residential mortgage servicing rights	—		—		37,154		37,154
Derivative financial instruments	—		42,326		12,018		54,344
Total assets	$	202,311	$	3,745,469	$	57,476	$	4,005,256
Liabilities:
Deferred compensation plan liability	$	10,929	$	—	$	—	$	10,929
Derivative financial instruments	—		92,474		13,661		106,135
Total liabilities	$	10,929	$	92,474	$	13,661	$	117,064

December 31, 2021	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	217,520	$	—	$	—	$	217,520
U.S. Government agencies & GSEs	—		187,032		—		187,032
State and political subdivisions	—		275,844		—		275,844
Residential MBS	—		2,145,134		—		2,145,134
Commercial MBS	—		873,851		—		873,851
Corporate bonds	—		190,771		2,395		193,166
Asset-backed securities	—		604,277		—		604,277
Equity securities with readily available fair values	—		1,302		—		1,302
Mortgage loans held for sale	—		44,109		—		44,109
Deferred compensation plan assets	11,769		—		—		11,769
Servicing rights for SBA/USDA loans	—		—		6,513		6,513
Residential mortgage servicing rights	—		—		25,161		25,161
Derivative financial instruments	—		35,722		6,758		42,480
Total assets	$	229,289	$	4,358,042	$	40,827	$	4,628,158
Liabilities:
Deferred compensation plan liability	$	11,795	$	—	$	—	$	11,795
Derivative financial instruments	—		20,097		5,048		25,145
Total liabilities	$	11,795	$	20,097	$	5,048	$	36,940

31

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table shows a reconciliation of the beginning and ending balances for the periods indicated for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2022										2021
	Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds		Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds
Three Months Ended September 30,
Beginning balance	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287	$	6,889	$	3,944	$	6,115	$	21,568	$	1,707
Additions	—		—		411		704		—		86		—		354		2,813		500
Sales and settlements	—		—		(220)		(602)		—		—		—		(357)		(875)		—
Fair value adjustments included in OCI	—		—		—		—		(61)		—		—		—		—		165
Fair value adjustments included in earnings	1,819		2,866		(280)		1,921		—		42		505		49		(444)		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372
Nine Months Ended September 30,
Beginning balance	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395	$	10,779	$	2,408	$	6,462	$	16,216	$	1,750
Additions	—		99		1,799		4,594		—		261		97		1,193		9,806		500
Transfers from Level 3	(290)		—		—		—		—		—		—		—		—		—
Sales and settlements	—		(1)		(857)		(1,916)		—		—		—		(1,001)		(3,430)		—
Fair value adjustments included in OCI	—		—		—		—		(169)		—		—		—		—		122
Fair value adjustments included in earnings	5,550		8,515		(1,377)		9,315		—		(4,023)		1,944		(493)		470		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372

The following table presents quantitative information about significant Level 3 inputs for fair value on a recurring basis as of the dates indicated. 

Level 3 Assets and Liabilities	Valuation Technique	Significant Unobservable Inputs	September 30, 2022			December 31, 2021
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	5.8% - 25.0%	13.5	%	0.0% - 45.4%	10.3	%
		Prepayment rate	0.0 - 35.1	16.8		3.2 - 31.3	16.3
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 10.5	9.5
		Prepayment rate	7.0 - 32.3	7.4		7.0 - 77.6	12.6
Corporate bonds	Discounted cash flow	Discount rate	5.9 - 6.1	6.0		3.6 - 3.8	3.6
Derivative assets - customer derivative positions	Internal model	Estimated loss rate	N/A	N/A		33.4 - 44.0	36.0
Derivative assets - mortgage	Internal model	Pull through rate	45.0 - 100	90.7		45.9 - 100	87.2
Derivative assets and liabilities - other	Dealer priced	Dealer priced	N/A	N/A		N/A	N/A

32

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Fair Value Option

United generally records mortgage loans held for sale at fair value under the fair value option. Interest income on these loans is calculated based on the note rate of the loan and is recorded in interest revenue. In connection with the Reliant acquisition, United acquired mortgage loans held for sale accounted for under the lower of cost or fair value method. These loans are separately disclosed under the heading “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” within this footnote. The following tables present the fair value and outstanding principal balance of loans accounted for under the fair value option, as well as the gain or loss recognized from the change in fair value for the periods indicated (in thousands).

Mortgage Loans Held for Sale
	September 30, 2022		December 31, 2021
Outstanding principal balance	$	20,180	$	42,581
Fair value	19,888		44,109

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Mortgage loan gains and other related fees	$	(809)	$	(1,609)	$	(1,820)	$	(3,330)

Changes in fair value were mostly offset by hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

United may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of the lower of the amortized cost or fair value accounting or write-downs of individual assets due to impairment. The following table presents the fair value hierarchy and carrying value of assets that were still held as of September 30, 2022 and December 31, 2021, for which a nonrecurring fair value adjustment was recorded during the year-to-date periods presented (in thousands).

	Level 1		Level 2		Level 3		Total
September 30, 2022
Loans held for investment	$	—	$	—	$	1,820	$	1,820
Mortgage loans held for sale	—		—		2,079		2,079
December 31, 2021
Loans held for investment	$	—	$	—	$	2,536	$	2,536

Mortgage loans held for sale that were acquired from Reliant were subject to a nonrecurring fair value adjustment resulting from the application of the lower of the amortized cost or fair value accounting. As of September 30, 2022, these loans were classified as nonrecurring Level 3 because the valuation of these loans was based on indicative bids provided by a broker, not corroborated by market transactions.

Loans held for investment that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have either been partially charged off or have specific reserves assigned to them. Nonaccrual loans that are collateral dependent are generally written down to net realizable value, which reflects fair value less the estimated costs to sell. Specific reserves that are established based on appraised value of collateral are considered nonrecurring fair value adjustments as well. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the impaired loan as nonrecurring Level 3.

Assets and Liabilities Not Measured at Fair Value  

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

33

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Cash and cash equivalents and repurchase agreements have short maturities and therefore the carrying value approximates fair value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. All estimates are inherently subjective in nature. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Off-balance sheet instruments (commitments to extend credit and standby letters of credit) for which draws can be reasonably predicted are generally short-term in maturity and are priced at variable rates. Therefore, the estimated fair value associated with these instruments is immaterial.

The carrying amount and fair values as of the dates indicated for other financial instruments that are not measured at fair value on a recurring basis are as follows (in thousands).

			Fair Value Level
	Carrying Amount		Level 1		Level 2		Level 3		Total
September 30, 2022
Assets:
HTM debt securities	$	2,676,405	$	17,253	$	2,223,907	$	—	$	2,241,160
Loans and leases, net	14,733,982		—		—		14,250,071		14,250,071
Liabilities:
Deposits	20,321,142		—		20,315,750		—		20,315,750
Long-term debt	324,515		—		—		313,944		313,944
December 31, 2021
Assets:
HTM debt securities	$	1,156,098	$	—	$	1,148,804	$	—	$	1,148,804
Loans and leases, net	11,657,814		—		—		11,607,821		11,607,821
Liabilities:
Deposits	18,241,179		—		18,239,934		—		18,239,934
Long-term debt	247,360		—		—		267,064		267,064

34

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Stock-Based Compensation

United has an equity compensation plan that allows for grants of various share-based compensation. The general terms of the plan include a vesting period (usually four years) with an exercisable period not to exceed ten years. Certain options and restricted stock unit awards provide for accelerated vesting if there is a change in control (as defined in the plan document). As of September 30, 2022, 2.80 million additional awards could be granted under the plan.

The table below presents restricted stock unit and option activity for the nine months ended September 30, 2022.

	Restricted Stock Unit Awards					Options
	Shares	Weighted- Average Grant- Date Fair Value		Aggregate Intrinsic Value ($000)		Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($000)
Outstanding at December 31, 2021	808,474	$	25.15			35,460	$	8.38
Granted	335,866	32.81				48,239	20.88
Released / Exercised	(289,860)	25.11		$	10,252	(16,257)	20.77			$	252
Cancelled	(29,925)	26.06				—	—
Outstanding at September 30, 2022	824,555	28.25		27,293		67,442	14.33		3.0	1,266
Vested / Exercisable at September 30, 2022	—	—				67,442	14.33		3.0	1,266

Options granted in 2022 reflect options assumed in the Reliant acquisition, with the weighted average exercise price of Reliant’s fully vested converted options determined pursuant to the purchase agreement. The value of the Reliant options was determined using a Black-Scholes model and was included in the purchase price for the acquisition. No compensation expense relating to options was included in earnings for the nine months ended September 30, 2022 and 2021.

Compensation expense for restricted stock units and performance stock units without market conditions is based on the market value of United’s common stock on the date of grant. Compensation expense for performance stock units with market conditions is based on the grant date per share fair value, which was estimated using the Monte Carlo Simulation valuation model. United recognizes the impact of forfeitures as they occur. The value of restricted stock unit and performance stock unit awards is amortized into expense over the service period.

For the nine months ended September 30, 2022 and 2021, expense of $6.24 million and $4.42 million, respectively, was recognized related to restricted stock unit and performance stock unit awards granted to United employees, which was included in salaries and employee benefits expense. In addition, for the nine months ended September 30, 2022 and 2021, $412,000 and $397,000, respectively, was recognized in other expense for restricted stock unit awards granted to members of United’s Board of Directors.

A deferred income tax benefit related to stock-based compensation expense of $1.70 million and $1.23 million was included in the determination of income tax expense for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $19.1 million of unrecognized expense related to non-vested restricted stock unit and performance stock unit awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.9 years.

35

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Reclassifications Out of AOCI

The following table presents the details regarding amounts reclassified out of AOCI for the periods indicated (in thousands). Amounts shown in parentheses reduce earnings.

Details about AOCI Components	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
	2022		2021		2022		2021
Realized gains (losses) on AFS securities:
	$	—	$	—	$	(3,688)	$	41	Securities gains (losses), net
	—		—		979		(14)		Income tax (expense) benefit
	$	—	$	—	$	(2,709)	$	27	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(4,473)	$	—	$	(6,242)	$	—	Investment securities interest revenue
	1,073		—		1,495		—		Income tax benefit
	$	(3,400)	$	—	$	(4,747)	$	—	Net of tax
Losses on derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	(48)	$	(153)	$	(295)	$	(444)	Long-term debt interest expense
	12		39		75		113		Income tax benefit
	$	(36)	$	(114)	$	(220)	$	(331)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(91)	$	(117)	$	(276)	$	(351)	Salaries and employee benefits expense
Actuarial losses	(78)		(143)		(234)		(431)		Other expense
	(169)		(260)		(510)		(782)		Total before tax
	43		66		130		200		Income tax benefit
	$	(126)	$	(194)	$	(380)	$	(582)	Net of tax
Total reclassifications for the period	$	(3,562)	$	(308)	$	(8,056)	$	(886)	Net of tax

36

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 13 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	81,161	$	73,816	$	196,022	$	217,782
Dividends on preferred stock	(1,719)		(1,719)		(5,157)		(5,157)
Earnings allocated to participating securities	(407)		(448)		(1,007)		(1,342)
Net income available to common shareholders	$	79,035	$	71,649	$	189,858	$	211,283
Weighted average shares outstanding:
Basic	106,687		87,211		106,616		87,274
Effect of dilutive securities:
Stock options	38		—		40		—
Restricted stock units	75		144		76		139
Diluted	106,800		87,355		106,732		87,413
Net income per common share:
Basic	$	0.74	$	0.82	$	1.78	$	2.42
Diluted	$	0.74	$	0.82	$	1.78	$	2.42

At September 30, 2022 and 2021, United had no potentially dilutive instruments outstanding that were not included in the above analysis.

Note 14 – Regulatory Matters

As of September 30, 2022, United and the Bank were categorized as well-capitalized under the regulatory requirements in effect at that time. To be categorized as well-capitalized, United and the Bank must have exceeded the well-capitalized guideline ratios in effect at the time, as set forth in the table below, and have met certain other requirements. Management believes that United and the Bank exceeded all well-capitalized requirements at September 30, 2022, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

Regulatory capital ratios at September 30, 2022 and December 31, 2021, along with the minimum amounts required for capital adequacy purposes and to be well-capitalized under regulatory requirements in effect at such times, are presented below for United and the Bank (dollars in thousands):

					United Community Banks, Inc. (Consolidated)						United Community Bank
	Minimum (1)		Well- Capitalized		September 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.13		%	12.46		%	12.94		%	12.87		%
Tier 1 capital	6.0		8.0		12.68			13.17			12.94			12.87
Total capital	8.0		10.0		14.62			14.65			13.75			13.46
Leverage ratio	4.0		5.0		9.41			8.75			9.58			8.53
CET1 capital					$	2,101,819		$	1,688,176		$	2,234,151		$	1,738,557
Tier 1 capital					2,198,241			1,784,598			2,234,151			1,738,557
Total capital					2,534,810			1,984,376			2,374,603			1,818,335
Risk-weighted assets					17,332,391			13,548,534			17,269,896			13,512,405
Average total assets for the leverage ratio					23,359,608			20,402,842			23,308,849			20,377,319

(1) As of September 30, 2022 and December 31, 2021 the additional capital conservation buffer in effect was 2.50%

37

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 15 – Commitments and Contingencies

United is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement United has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. United uses the same credit policies in making commitments and conditional obligations as it uses for underwriting on-balance sheet instruments. In most cases, collateral or other security is required to support financial instruments with credit risk.

The following table summarizes the contractual amount of off-balance sheet instruments as of the dates indicated (in thousands).

	September 30, 2022		December 31, 2021
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,592,092	$	3,591,975
Letters of credit	53,526		29,312

United holds minor investments in certain entities for tax credit and Community Reinvestment Act purposes. As of September 30, 2022 and December 31, 2021, the Bank had a recorded investment of $79.8 million and $52.7 million, respectively, in such investments, which is included in other assets on the consolidated balance sheet. As of September 30, 2022, United had committed to fund an additional $6.96 million related to future capital calls that are not reflected in the consolidated balance sheet.

As of September 30, 2022, the Holding Company also had $18.1 million in commitments for future capital calls to fintech fund limited partnerships that have not been reflected in the consolidated balance sheet.

United, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on United’s financial position or results of operations.

38

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

The following is a discussion of our financial condition at September 30, 2022 and December 31, 2021 and our results of operations for the three and nine months ended September 30, 2022 and 2021. 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” and the risk factors discussed in our 2021 10-K, and the other reports we have filed with the SEC after we filed the 2021 10-K.

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

Overview

We offer a wide array of commercial and consumer banking services and investment advisory services primarily through a 193 branch network throughout Georgia, South Carolina, North Carolina, Tennessee and Florida. We have grown organically as well as through strategic acquisitions. At September 30, 2022, we had consolidated total assets of $23.7 billion and 2,826 full-time equivalent employees.

Recent Developments

Mergers and Acquisitions

Since September 30, 2021, we have continued to expand through acquisitions as follows:

◦On January 1, 2022, we acquired Reliant, a bank which operated a 25-branch network primarily located in Middle Tennessee. We acquired $2.96 billion of assets and assumed $2.66 billion of liabilities in the acquisition, which included $2.32 billion in loans and $2.50 billion in deposits as of the acquisition date.

◦On October 1, 2021, we acquired Aquesta, a bank which operated a network of branches primarily located in the Charlotte, North Carolina metropolitan area. We acquired total assets of $756 million, including $498 million in loans, and we assumed $658 million in deposits as of the acquisition date.

On May 4, 2022, we announced an agreement to acquire Progress, which we plan to complete in the first quarter of 2023. Progress is headquartered in Huntsville, Alabama, and operates 14 offices in high-growth southeastern markets, including Huntsville, Birmingham, Daphne and Tuscaloosa in Alabama and the Florida Panhandle. As of September 30, 2022, Progress had total assets of $1.74 billion, total loans of $1.41 billion, and total deposits of $1.50 billion.

Results of Operations

We reported net income and diluted earnings per common share of $81.2 million and $0.74, respectively, for the third quarter of 2022 compared to $73.8 million and $0.82, respectively, for the same period in 2021. Operating net income (non-GAAP), which excludes merger-related and other charges, was $82.5 million for the third quarter of 2022, compared to $74.9 million for the same period in 2021.

Net interest revenue increased to $200 million for the third quarter of 2022, compared to $141 million for the third quarter of 2021. The increase in interest revenue was provided by loan growth, including loans acquired from Aquesta and Reliant, continued investment in our securities portfolio and the impact of the current rising interest rate environment. These factors more than offset the increase in interest expense resulting from deposit growth and increased long-term debt, both of which also included increases resulting from acquisitions. In addition, while interest rates on interest-bearing deposits also increased, they did so at a slower rate than that of our interest-earning assets. Our net interest margin and net interest spread for the third quarter of 2022 increased compared to the same period of last year due to the rising interest rate environment, but was partially offset by the impact of tapering accelerated PPP deferred fee accretion and interest revenue and less purchased loan accretion compared to the same period of last year. The net interest margin for the three months ended September 30, 2022 and 2021 was 3.57% and 3.12%, respectively.

We recorded a provision for credit losses of $15.4 million for the third quarter of 2022, compared to a release of provision of $11.0 million for the third quarter of 2021. The provision expense in the third quarter of 2022 resulted from loan growth and a less favorable current economic outlook compared to that as of the prior quarter-end. The negative provision in 2021 resulted from an improved economic forecast at that time as the outlook of the COVID-19 pandemic had improved. We recorded net charge-offs for the third quarters of 2022 and 2021 totaling $1.13 million and $551,000, respectively.

39

Noninterest income of $31.9 million for the third quarter of 2022 was down $8.17 million, or 20%, from the third quarter of 2021. Lower gains on sales of mortgage loans and related fees, which were down $7.53 million compared to the same period of 2021, drove most of the decrease. The decrease reflects lower demand in the residential real estate mortgage market as interest rates have risen significantly since the third quarter of 2021. We also recorded unrealized losses on other investments during the third quarter of 2022 compared to unrealized gains in the same period of 2021, reflective of market conditions. These decreases were partially offset by an increase in BOLI income resulting from policies acquired with Reliant and Aquesta and death benefits received in 2022.

Noninterest expense of $113 million for the third quarter of 2022 increased $16.0 million compared to the same period of 2021. Most notably, salaries and employee benefits expense increased $7.37 million, which was primarily driven by the increase in employees resulting from acquisitions since September 30, 2021 and our annual salary merit-based increase effective in April of 2022. Occupancy and communications and equipment expense increased $2.04 million and $1.43 million, respectively, which was also primarily driven by the acquisitions of Aquesta and Reliant as our footprint continues to grow.

For the nine months ended September 30, 2022 and 2021, we reported net income of $196 million and $218 million, respectively, and diluted earnings per common share of $1.78 and $2.42, respectively. Operating net income (non-GAAP) for the nine months ended September 30, 2022 and 2021 of $210 million and $221 million, respectively, excluded merger-related charges for both periods. Net interest revenue and net interest margin for the nine months ended September 30, 2022 were $542 million and 3.25%, respectively, compared to $411 million and 3.17%, respectively, for the same period in 2021. In addition to the factors affecting the third quarter of 2022, results of operations for the nine months ended September 30, 2022 were also more heavily affected by the Reliant acquisition. Most notably, we incurred more significant merger-related and other charges and provision expense during the first nine months of 2022 compared to the same period of 2021. Merger-related and other charges increased $13.8 million, which is mostly reflective of Reliant merger-related costs and the second quarter Reliant systems conversion. Provision expense for the nine months ended September 30, 2022 was $44.1 million compared to a release of provision of $36.9 million during the comparable period of 2021. $18.3 million of the provision expense for the nine months ended September 30, 2022 was related to the establishment of the ACL for the acquired Reliant non-PCD loans and unfunded commitments.

Results for the third quarter and first nine months of 2022 are discussed in further detail throughout the following sections of MD&A.

Critical Accounting Estimates

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Our accounting and reporting estimates are in accordance with GAAP and conform to general practices within the banking industry. Estimates that are susceptible to significant changes include accounting for the ACL and fair value measurements, both of which require significant judgments by management. Actual results could differ significantly from those estimates. Also, different assumptions in the application of these accounting estimates could result in material changes in our consolidated financial position or consolidated results of operations. Our critical accounting estimates are discussed in MD&A in our 2021 10-K.

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 “expenses – 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.” We have developed internal policies 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. 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 1 of MD&A.

40

UNITED COMMUNITY BANKS, INC.
Table 1 - Financial Highlights
(in thousands, except per share data)
	2022									2021						Third Quarter 2022 - 2021 Change		For the Nine Months Ended September 30,						YTD Change
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter					2022			2021
INCOME SUMMARY
Interest revenue	$	213,887		$	187,378		$	171,059		$	143,768		$	147,675				$	572,324		$	435,026
Interest expense	14,113			8,475			7,267			6,213			6,636					29,855			23,547
Net interest revenue	199,774			178,903			163,792			137,555			141,039			42	%	542,469			411,479			32	%
Provision for (release of) credit losses	15,392			5,604			23,086			(647)			(11,034)					44,082			(36,903)
Noninterest income	31,922			33,458			38,973			37,177			40,095			(20)		104,353			120,641			(14)
Total revenue	216,304			206,757			179,679			175,379			192,168			13		602,740			569,023			6
Noninterest expenses	112,755			120,790			119,275			109,156			96,749			17		352,820			287,483			23
Income before income tax expense	103,549			85,967			60,404			66,223			95,419			9		249,920			281,540			(11)
Income tax expense	22,388			19,125			12,385			14,204			21,603			4		53,898			63,758			(15)
Net income	81,161			66,842			48,019			52,019			73,816			10		196,022			217,782			(10)
Merger-related and other charges	1,746			7,143			9,016			9,912			1,437					17,905			4,058
Income tax benefit of merger-related and other charges	(385)			(1,575)			(1,963)			(2,265)			(328)					(3,923)			(909)
Net income - operating (1)	$	82,522		$	72,410		$	55,072		$	59,666		$	74,925		10		$	210,004		$	220,931		(5)
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.74		$	0.61		$	0.43		$	0.55		$	0.82		(10)		$	1.78		$	2.42		(26)
Diluted net income - operating (1)	0.75			0.66			0.50			0.64			0.83			(10)		1.91			2.45			(22)
Cash dividends declared	0.22			0.21			0.21			0.20			0.20			10		0.64			0.58			10
Book value	23.78			23.96			24.38			23.63			23.25			2		23.78			23.25			2
Tangible book value (3)	16.52			16.68			17.08			18.42			18.68			(12)		16.52			18.68			(12)
Key performance ratios:
Return on common equity - GAAP (2)(4)	11.02		%	9.31		%	6.80		%	9.32		%	14.26		%			9.08		%	14.55		%
Return on common equity - operating (1)(2)(4)	11.21			10.10			7.83			10.74			14.48					9.75			14.77
Return on tangible common equity - operating (1)(2)(3)(4)	15.60			14.20			11.00			13.93			18.23					13.64			18.55
Return on assets - GAAP (4)	1.32			1.08			0.78			0.96			1.48					1.06			1.52
Return on assets - operating (1)(4)	1.34			1.17			0.89			1.10			1.50					1.13			1.54
Net interest margin (FTE) (4)	3.57			3.19			2.97			2.81			3.12					3.25			3.17
Efficiency ratio - GAAP	48.41			56.58			57.43			62.12			53.11					53.94			53.72
Efficiency ratio - operating (1)	47.66			53.23			53.09			56.48			52.33					51.20			52.97
Equity to total assets	11.12			10.95			11.06			10.61			10.89					11.12			10.89
Tangible common equity to tangible assets (3)	7.70			7.59			7.72			8.09			8.53					7.70			8.53
ASSET QUALITY
NPAs	$	35,511		$	34,428		$	40,816		$	32,855		$	45,335		(22)		$	35,511		$	45,335		(22)
ACL - loans	148,502			136,925			132,805			102,532			99,620			49		148,502			99,620			49
Net charge-offs (recoveries)	1,134			(1,069)			2,978			248			551					3,043			(210)
ACL - loans to loans	1.00		%	0.94		%	0.93		%	0.87		%	0.89		%			1.00		%	0.89		%
Net charge-offs to average loans (4)	0.03			(0.03)			0.08			0.01			0.02					0.03			—
NPAs to total assets	0.15			0.14			0.17			0.16			0.23					0.15			0.23
AT PERIOD END ($ in millions)
Loans	$	14,882		$	14,541		$	14,316		$	11,760		$	11,191		33		$	14,882		$	11,191		33
Investment securities	6,539			6,683			6,410			5,653			5,335			23		6,539			5,335			23
Total assets	23,688			24,213			24,374			20,947			19,481			22		23,688			19,481			22
Deposits	20,321			20,873			21,056			18,241			16,865			20		20,321			16,865			20
Shareholders’ equity	2,635			2,651			2,695			2,222			2,122			24		2,635			2,122			24
Common shares outstanding (thousands)	106,163			106,034			106,025			89,350			86,559			23		106,163			86,559			23

(1) Excludes merger-related and other charges. (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.

41

UNITED COMMUNITY BANKS, INC.
Table 1 (Continued) - Financial Highlights
Non-GAAP Performance Measures Reconciliation
(in thousands, except per share data)
	2022									2021						For the Nine Months Ended September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2022			2021
Noninterest expense reconciliation
Noninterest expenses (GAAP)	$	112,755		$	120,790		$	119,275		$	109,156		$	96,749		$	352,820		$	287,483
Merger-related and other charges	(1,746)			(7,143)			(9,016)			(9,912)			(1,437)			(17,905)			(4,058)
Noninterest expenses - operating	$	111,009		$	113,647		$	110,259		$	99,244		$	95,312		$	334,915		$	283,425
Net income reconciliation
Net income (GAAP)	$	81,161		$	66,842		$	48,019		$	52,019		$	73,816		$	196,022		$	217,782
Merger-related and other charges	1,746			7,143			9,016			9,912			1,437			17,905			4,058
Income tax benefit of merger-related and other charges	(385)			(1,575)			(1,963)			(2,265)			(328)			(3,923)			(909)
Net income - operating	$	82,522		$	72,410		$	55,072		$	59,666		$	74,925		$	210,004		$	220,931
Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.74		$	0.61		$	0.43		$	0.55		$	0.82		$	1.78		$	2.42
Merger-related and other charges, net of tax	0.01			0.05			0.07			0.09			0.01			0.13			0.03
Diluted income per common share - operating	$	0.75		$	0.66		$	0.50		$	0.64		$	0.83		$	1.91		$	2.45
Book value per common share reconciliation
Book value per common share (GAAP)	$	23.78		$	23.96		$	24.38		$	23.63		$	23.25		$	23.78		$	23.25
Effect of goodwill and other intangibles	(7.26)			(7.28)			(7.30)			(5.21)			(4.57)			(7.26)			(4.57)
Tangible book value per common share	$	16.52		$	16.68		$	17.08		$	18.42		$	18.68		$	16.52		$	18.68
Return on tangible common equity reconciliation
Return on common equity (GAAP)	11.02		%	9.31		%	6.80		%	9.32		%	14.26		%	9.08		%	14.55		%
Merger-related and other charges, net of tax	0.19			0.79			1.03			1.42			0.22			0.67			0.22
Return on common equity - operating	11.21			10.10			7.83			10.74			14.48			9.75			14.77
Effect of goodwill and other intangibles	4.39			4.10			3.17			3.19			3.75			3.89			3.78
Return on tangible common equity - operating	15.60		%	14.20		%	11.00		%	13.93		%	18.23		%	13.64		%	18.55		%
Return on assets reconciliation
Return on assets (GAAP)	1.32		%	1.08		%	0.78		%	0.96		%	1.48		%	1.06		%	1.52		%
Merger-related and other charges, net of tax	0.02			0.09			0.11			0.14			0.02			0.07			0.02
Return on assets - operating	1.34		%	1.17		%	0.89		%	1.10		%	1.50		%	1.13		%	1.54		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)	48.41		%	56.58		%	57.43		%	62.12		%	53.11		%	53.94		%	53.72		%
Merger-related and other charges	(0.75)			(3.35)			(4.34)			(5.64)			(0.78)			(2.74)			(0.75)
Efficiency ratio - operating	47.66		%	53.23		%	53.09		%	56.48		%	52.33		%	51.20		%	52.97		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	11.12		%	10.95		%	11.06		%	10.61		%	10.89		%	11.12		%	10.89		%
Effect of goodwill and other intangibles	—			(2.96)			(2.94)			(2.06)			(1.87)			—			(1.87)
Effect of preferred equity	(3.42)			(0.40)			(0.40)			(0.46)			(0.49)			(3.42)			(0.49)
Tangible common equity to tangible assets	7.70		%	7.59		%	7.72		%	8.09		%	8.53		%	7.70		%	8.53		%

42

Net Interest Revenue

Net interest revenue, which is the difference between the interest earned on assets and the interest paid on deposits and borrowed funds, is the single largest component of total revenue. Management seeks to optimize this revenue while balancing interest rate, credit and liquidity risks. The banking industry uses two ratios to measure the relative profitability of net interest revenue. The net interest spread measures the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. The interest rate spread eliminates the effect of noninterest-bearing deposits and gives a direct perspective on the effect of market interest rate movements. The net interest margin is an indication of the profitability of a company’s balance sheet and is defined as net interest revenue as a percent of average total interest-earning assets, which includes the positive effect of funding a portion of interest-earning assets with noninterest-bearing deposits and stockholders’ equity.

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

For the quarter:

The increase in net interest revenue was primarily driven by the $3.45 billion increase in average loans provided by the addition of the Aquesta and Reliant loan portfolios, as well as organic growth. As a result of this increase and the rising rate environment, loan interest revenue (FTE) increased $46.0 million compared to the third quarter of 2021, which was partially offset by $13.4 million less in PPP interest and fee income and $3.37 million less in purchased loan accretion. Additionally, the increase in average securities of $1.91 billion combined with rising rates provided $18.5 million more in interest revenue (FTE) compared to the same period of last year as we have continued to deploy surplus liquidity into the securities portfolio. Compared to the third quarter of 2021, average interest-bearing deposits increased $2.13 billion and deposit interest expense increased $6.74 million. Growth in deposits includes deposits received in the acquisitions of Aquesta and Reliant. The increase in deposit interest expense was driven both by the deposit growth and the 20 basis point increase in the average rate paid on interest-bearing deposits resulting from the rising interest rate environment.

Our net interest spread and net interest margin for the third quarter of 2022 increased 37 and 45 basis points, respectively, compared to the third quarter of 2021, which was primarily a result of the impact of the rising rate environment on our asset-sensitive balance sheet as rates on interest-earning assets increased more quickly than rates paid on interest-bearing deposits. As discussed above, we had significantly less accelerated PPP interest and fees and purchased loan accretion compared to the third quarter of 2021. As a result, the average rate earned on loans, net interest spread and net interest margin for the third quarter of 2021 were more positively impacted by these sources of interest revenue compared to the same period of 2022, which partially offset the impact of the increase in interest rates since the third quarter 2021.

For the nine months ended:

Net interest revenue for the first nine months of 2022 was $542 million, representing a 32% increase from the first nine months of 2021, which was primarily driven by the same factors impacting the quarter. During the first nine months of 2022, our net interest spread and net interest margin both increased by 8 basis points compared to the same period of 2021. As with the quarter, the positive impact of the rising interest rate environment on our average rate earned on loans, net interest spread and net interest margin was partially offset by the significant decreases in accelerated PPP deferred fee accretion and interest income and purchased loan accretion of $36.1 million and $7.99 million, respectively, compared to the nine months ended September 30, 2021.

43

Table 2 - Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended September 30,

(dollars in thousands, FTE)

	2022						2021
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	14,658,397	$	174,168	4.71	%	$	11,204,653	$	128,185	4.54	%
Taxable securities (3)	6,539,615		34,385		2.10		4,738,860		16,260		1.37
Tax-exempt securities (FTE) (1)(3)	493,115		3,449		2.80		383,196		3,061		3.20
Federal funds sold and other interest-earning assets	614,755		3,106		2.00		1,751,222		1,185		0.27
Total interest-earning assets (FTE)	22,305,882		215,108		3.83		18,077,931		148,691		3.27
Noninterest-earning assets:
Allowance for credit losses	(138,907)						(111,952)
Cash and due from banks	231,376						124,360
Premises and equipment	290,768						228,556
Other assets (3)	1,261,236						1,002,810
Total assets	$	23,950,355					$	19,321,705
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	4,335,619	3,992		0.37		$	3,594,670	1,290		0.14
Money market	4,849,705		4,503		0.37		4,010,720		1,119		0.11
Savings	1,515,350		178		0.05		1,120,843		55		0.02
Time	1,635,580		984		0.24		1,466,821		609		0.16
Brokered time deposits	51,530		223		1.72		63,917		69		0.43
Total interest-bearing deposits	12,387,784		9,880		0.32		10,256,971		3,142		0.12
Federal funds purchased and other borrowings	3,442		27		3.11		—		—		—
Federal Home Loan Bank advances	—		—		—		54		—		—
Long-term debt	324,444		4,206		5.14		257,139		3,494		5.39
Total borrowed funds	327,886		4,233		5.12		257,193		3,494		5.39
Total interest-bearing liabilities	12,715,670		14,113		0.44		10,514,164		6,636		0.25
Noninterest-bearing liabilities:
Noninterest-bearing deposits	8,176,987						6,379,969
Other liabilities	349,647						308,551
Total liabilities	21,242,304						17,202,684
Shareholders' equity	2,708,051						2,119,021
Total liabilities and shareholders' equity	$	23,950,355					$	19,321,705
Net interest revenue (FTE)			$	200,995					$	142,055
Net interest-rate spread (FTE)					3.39	%					3.02	%
Net interest margin (FTE) (4)					3.57	%					3.12	%

(1)Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, 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 on which the accrual of interest has been discontinued and loans that are held for sale.

(3)Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $318 million and pretax unrealized gains of $39.6 million in 2022 and 2021, 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

Table 3 - Average Consolidated Balance Sheets and Net Interest Analysis

For the Nine Months Ended September 30,

	2022						2021
(dollars in thousands, fully taxable equivalent (FTE))	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	14,426,470	$	475,989	4.41	%	$	11,417,285	$	380,765	4.46	%
Taxable securities (3)	6,274,230		83,281		1.77		4,206,099		44,845		1.42
Tax-exempt securities (FTE) (1)(3)	498,177		10,425		2.79		381,323		8,979		3.14
Federal funds sold and other interest-earning assets	1,271,287		6,192		0.65		1,468,487		3,462		0.31
Total interest-earning assets (FTE)	22,470,164		575,887		3.43		17,473,194		438,051		3.35
Non-interest-earning assets:
Allowance for loan losses	(129,278)						(127,793)
Cash and due from banks	200,463						138,973
Premises and equipment	284,850						225,021
Other assets (3)	1,308,647						1,007,669
Total assets	$	24,134,846					$	18,717,064
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	4,520,079	7,624		0.23		$	3,452,206	4,158		0.16
Money market	4,992,357		7,030		0.19		3,853,907		4,278		0.15
Savings	1,483,169		337		0.03		1,064,045		157		0.02
Time	1,688,250		2,009		0.16		1,551,934		3,096		0.27
Brokered time deposits	65,133		313		0.64		67,794		292		0.58
Total interest-bearing deposits	12,748,988		17,313		0.18		9,989,886		11,981		0.16
Federal funds purchased and other borrowings	1,383		27		2.61		41		—		—
Federal Home Loan Bank advances	—		—		—		1,117		2		0.24
Long-term debt	322,600		12,515		5.19		286,347		11,564		5.40
Total borrowed funds	323,983		12,542		5.18		287,505		11,566		5.38
Total interest-bearing liabilities	13,072,971		29,855		0.31		10,277,391		23,547		0.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits	7,958,392						6,059,680
Other liabilities	375,182						311,749
Total liabilities	21,406,545						16,648,820
Shareholders' equity	2,728,301						2,068,244
Total liabilities and shareholders' equity	$	24,134,846					$	18,717,064
Net interest revenue (FTE)			$	546,032					$	414,504
Net interest-rate spread (FTE)					3.12	%					3.04	%
Net interest margin (FTE) (4)					3.25	%					3.17	%

(1)Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, 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 on which the accrual of interest has been discontinued and loans that are held for sale.

(3)Unrealized gains and losses, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $221 million in 2022 and pretax unrealized gains of $40.3 million in 2021, 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.

45

The following table shows the relative effect on net interest revenue for changes in the average outstanding amounts (volume) of interest-earning assets and interest-bearing liabilities and the rates earned and paid on such assets and liabilities (rate). Variances resulting from a combination of changes in rate and volume are allocated in proportion to the absolute dollar amounts of the change in each category.

Table 4 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis

(in thousands)

	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Compared to 2021 Increase (Decrease) Due to Changes in
	Volume		Rate		Total		Volume		Rate		Total
Interest-earning assets:
Loans (FTE)	$	40,867	$	5,116	$	45,983	$	99,327	$	(4,103)	$	95,224
Taxable securities	7,549		10,576		18,125		25,655		12,781		38,436
Tax-exempt securities (FTE)	802		(414)		388		2,527		(1,081)		1,446
Federal funds sold and other interest-earning assets	(1,220)		3,141		1,921		(522)		3,252		2,730
Total interest-earning assets (FTE)	47,998		18,419		66,417		126,987		10,849		137,836
Interest-bearing liabilities:
NOW and interest-bearing demand accounts	314		2,388		2,702		1,511		1,955		3,466
Money market accounts	279		3,105		3,384		1,441		1,311		2,752
Savings deposits	25		98		123		76		104		180
Time deposits	76		299		375		252		(1,339)		(1,087)
Brokered deposits	(16)		170		154		(12)		33		21
Total interest-bearing deposits	678		6,060		6,738		3,268		2,064		5,332
Federal funds purchased & other borrowings	14		13		27		14		13		27
FHLB advances	—		—		—		(1)		(1)		(2)
Long-term debt	879		(167)		712		1,420		(469)		951
Total borrowed funds	893		(154)		739		1,433		(457)		976
Total interest-bearing liabilities	1,571		5,906		7,477		4,701		1,607		6,308
Increase in net interest revenue (FTE)	$	46,427	$	12,513	$	58,940	$	122,286	$	9,242	$	131,528

Provision for Credit Losses

The ACL represents management’s estimate of life of loan credit losses in the loan portfolio and unfunded loan commitments. Management’s estimate of credit losses under CECL is determined using a model that relies on reasonable and supportable forecasts and historical loss information to determine the balance of the ACL and resulting provision for credit losses.

We recorded a provision for credit losses of $15.4 million and $44.1 million for the three and nine months ended September 30, 2022, respectively, compared to a release of provision of $11.0 million and $36.9 million, respectively, for the same periods of 2021. 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. The provision recorded during the third quarter of 2022 reflected a less favorable economic outlook as of September 30, 2022 compared to that of the prior quarter and prior year. The provision for credit losses during the nine months ended September 30, 2022 included the initial provision for credit losses on Reliant’s non-PCD loans and unfunded commitments of $15.2 million and $3.12 million, respectively. The negative provision expense for the three and nine months ended September 30, 2021 was primarily a result of an improved economic forecast combined with low net charge-offs for the third quarter of 2021 and net recoveries for the nine months ended September 30, 2021.

Additional discussion on credit quality and the ACL is included in the “Asset Quality and Risk Elements” section of MD&A in this Report.

46

Noninterest income

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

Table 5 - Noninterest Income

(in thousands)

	Three Months Ended September 30,				Change				Nine Months Ended September 30,				Change
	2022		2021		Amount		Percent		2022		2021		Amount		Percent
Overdraft fees	$	2,778	$	2,858	$	(80)	(3)	%	$	8,038	$	7,474	$	564	8	%
ATM and debit card fees	3,857		3,867		(10)		—		12,038		10,263		1,775		17
Other service charges and fees	2,934		2,625		309		12		8,568		7,518		1,050		14
Total service charges and fees	9,569		9,350		219		2		28,644		25,255		3,389		13
Mortgage loan gains and related fees	6,297		13,828		(7,531)		(54)		29,420		47,536		(18,116)		(38)
Wealth management fees	5,879		5,554		325		6		17,759		12,881		4,878		38
Gains on sales of other loans	2,228		2,353		(125)		(5)		9,226		7,506		1,720		23
Lending and loan servicing fees	2,946		2,825		121		4		7,518		7,070		448		6
Securities gains (losses), net	—		—		—				(3,688)		41		(3,729)
Other noninterest income:
Customer derivatives	470		585		(115)		(20)		1,790		2,537		(747)		(29)
Other investment gains (losses)	(1,492)		1,333		(2,825)				(3,333)		4,487		(7,820)
BOLI	2,020		832		1,188		143		5,241		2,661		2,580		97
Treasury management income	1,022		765		257		34		2,739		2,120		619		29
Other	2,983		2,670		313		12		9,037		8,547		490		6
Total other noninterest income	5,003		6,185		(1,182)		(19)		15,474		20,352		(4,878)		(24)
Total noninterest income	$	31,922	$	40,095	$	(8,173)	(20)		$	104,353	$	120,641	$	(16,288)	(14)

The increase in total service charges and fees was primarily driven by the acquisitions of Aquesta and Reliant since the third quarter of 2021, in addition to increases in organic transaction volume. However, the impact of the acquisitions on overdraft fees for the three and nine months ended September 30, 2022 was offset by the impact of updates to our consumer overdraft policy implemented in the fourth quarter of 2021. The policy updates included the addition of a fee forgiveness feature, an increase to the overdraft threshold and a lower daily fee item limit.

Mortgage loan gains and related fees consist primarily of fees earned on originations, secondary market gains on sales, derivative hedging gains and losses and fair value adjustments to our mortgage loans held for sale and mortgage servicing rights asset. The change in mortgage income is strongly tied to the interest rate environment and industry conditions. We recognize the majority of income on mortgages when customers enter into mortgage rate lock commitments, making our rate lock volume a significant driver of mortgage gains in any given period.

The decrease in mortgage loan gains and related fees was primarily a result of tapering mortgage refinance and mortgage rate lock demand compared to the same periods of 2021, as reflected in the following table. In addition, we held more of our mortgage production in portfolio in comparison to 2021, which contributed to the decrease in volume of loans sold. During the three and nine months ended September 30, 2022, we recorded $2.45 million and $10.9 million in positive fair value adjustments to the mortgage servicing rights asset, which partially offset the decrease in mortgage loan gains. In comparison, we recorded a negative fair value adjustment to the mortgage servicing rights asset of $146,000 and a positive adjustment of $1.33 million for the three and nine months ended September 30, 2021.

47

Table 6 - Selected Mortgage Metrics
(dollars in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022		2021		% Change		2022		2021		% Change
Mortgage rate locks	$	456,186	$	730,566	(38)	%	$	1,810,839	$	2,425,571	(25)	%
# of mortgage rate locks	1,213		2,077		(42)		4,622		7,149		(35)
Mortgage loans sold	$	93,183	$	319,232	(71)		$	460,232	$	1,062,373	(57)
# of mortgage loans sold	379		1,299		(71)		1,812		4,408		(59)
Mortgage loans originated:
Purchases	$	269,743	$	354,378	(24)		$	977,562	$	1,053,849	(7)
Refinances	47,533		214,018		(78)		300,128		849,421		(65)
Total	$	317,276	$	568,396	(44)		$	1,277,690	$	1,903,270	(33)
# of mortgage loans originated	841		1,615		(48)		3,243		5,749		(44)

The increase in wealth management fees for the first nine months of 2022 compared to the same period of 2021 resulted primarily from inclusion of FinTrust’s wealth management business for the full year of 2022. Assets under administration totaled $4.00 billion as of September 30, 2022.

During the first quarter of 2022, we sold certain lower-yielding securities with the strategic intent of reinvesting in higher-yielding securities, which resulted in securities losses for the nine months ended September 30, 2022.

Our SBA/USDA lending strategy includes selling a portion of the loan production each quarter. The amount of loans sold depends on several variables including the current lending environment and balance sheet management activities. During the third quarter and first nine months of 2022, we sold more SBA/USDA loans compared to the same period of last year. From time to time, we also sell certain equipment financing receivables. The following table presents loans sold and the corresponding gains or losses recognized on the sale for the periods indicated.

Table 7 - Other Loan Sales
(in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Loans Sold		Gain		Loans Sold		Gain		Loans Sold		Gain		Loans Sold		Gain
Guaranteed portion of SBA/USDA loans	$	20,405	$	1,535	$	13,484	$	1,492	$	87,867	$	7,108	$	57,132	$	5,835
Equipment financing receivables	21,557		693		19,273		861		65,534		2,118		39,240		1,671
Total	$	41,962	$	2,228	$	32,757	$	2,353	$	153,401	$	9,226	$	96,372	$	7,506

The change in other noninterest income for the three and nine months ended September 30, 2022 compared to the same periods of 2021 was primarily driven by the following factors:

•Customer derivative income for the nine months ended September 30, 2022 decreased due to rising interest rates negatively impacting the demand for customer derivative products. This was partially offset by improvements in the CVA on customer derivatives. The CVA improved due to rising interest rates, which lowered our overall credit exposure on customer derivative positions, and credit upgrades to underlying loans associated with customer derivative positions.

•We recorded unrealized losses on our other investments, which includes deferred compensation plan assets, CRA and tax credit investments and other equity securities, compared to unrealized gains during the same periods of 2021.

•The increase in BOLI income reflects income earned on BOLI policies acquired with Reliant as well as death benefit gains recognized in the second and third quarters of 2022 totaling $1.37 million.

48

Noninterest Expenses 

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

Table 8 - Noninterest Expenses

(in thousands)

	Three Months Ended September 30,				Change				Nine Months Ended September 30,				Change
	2022		2021		Amount		Percent		2022		2021		Amount		Percent
Salaries and employee benefits	$	67,823	$	60,458	$	7,365	12	%	$	208,062	$	180,457	$	27,605	15	%
Communications and equipment	8,795		7,368		1,427		19		27,718		21,979		5,739		26
Occupancy	9,138		7,096		2,042		29		27,381		21,130		6,251		30
Advertising and public relations	2,544		1,458		1,086		74		6,332		4,150		2,182		53
Postage, printing and supplies	2,190		1,731		459		27		6,308		5,171		1,137		22
Professional fees	4,821		5,347		(526)		(10)		14,670		14,509		161		1
Lending and loan servicing expense	2,333		2,450		(117)		(5)		7,746		8,508		(762)		(9)
Outside services - electronic banking	3,159		2,308		851		37		8,629		6,811		1,818		27
FDIC assessments and other regulatory charges	2,356		1,723		633		37		6,796		5,520		1,276		23
Amortization of intangibles	1,678		1,028		650		63		5,207		2,942		2,265		77
Other	6,172		4,345		1,827		42		16,066		12,248		3,818		31
Total excluding merger-related and other charges	111,009		95,312		15,697		16		334,915		283,425		51,490		18
Merger-related and other charges	1,746		1,437		309				17,905		4,058		13,847
Total noninterest expenses	$	112,755	$	96,749	$	16,006	17		$	352,820	$	287,483	$	65,337	23

The increase in salaries and employee benefits for the third quarter and first nine months of 2022 compared to the same periods of 2021 was primarily driven by the addition of Reliant, Aquesta and FinTrust employees since their respective acquisition dates. The increase also reflects our annual merit-based salary increases awarded during the second quarter of 2022. These increases were partially offset by a reduction in deferred compensation expense resulting from unrealized losses on underlying plan assets, compared to unrealized gains in the same periods of 2021. Commissions expense also decreased primarily due to reduced mortgage production volume. Full-time equivalent headcount totaled 2,826 at September 30, 2022, up from 2,480 at September 30, 2021, which represents a 14% increase.

Communications and equipment expense increased primarily due to incremental software contract costs and the growth in our network with the addition of recent acquisitions. The increase in occupancy costs for the third quarter and first nine months of 2022 compared to the same periods of 2021 was mostly attributable to the additional operating lease costs associated with Reliant, Aquesta and FinTrust. Advertising and public relations expense increased compared to 2021 as a result of charitable contributions made to the United Community Bank Foundation, new marketing campaigns, promotions and sponsorships. In the third quarter of 2022, we made a $650,000 contribution to the United Community Bank Foundation. The increase in outside services - electronic banking primarily related to increased ATM network and internet banking costs. Amortization of intangibles increased with the additional customer deposit and customer relationship intangibles recorded as a result of acquisitions since the third quarter of 2021. The increase in other expense was primarily due to increase in travel and meals expenses, as well as volume-based increases in fraud losses. Increased merger-related charges for the nine months ended September 30, 2022 were primarily related to the acquisition of Reliant and the completion of its system conversion in the second quarter of 2022, as well as branch closure costs.

Balance Sheet Review

Total assets at September 30, 2022 and December 31, 2021 were $23.7 billion and $20.9 billion, respectively. Total liabilities at September 30, 2022 and December 31, 2021 were $21.1 billion and $18.7 billion, respectively. Shareholders’ equity totaled $2.63 billion and $2.22 billion at September 30, 2022 and December 31, 2021, respectively.

49

Loans

Our loan portfolio is our largest category of interest-earning assets. The following table presents a summary of the loan portfolio by loan type as of September 30, 2022, of which approximately 73% was secured by real estate. Commercial and industrial loans as of September 30, 2022 included $2.44 million of PPP loans.

Table 9 - Loan Portfolio Composition

As of September 30, 2022

Asset Quality and Risk Elements

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 risk management 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 special mention and substandard performing and non-performing loans, TDRs, 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 risk rating policies and procedures.

The ACL reflects our 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 our assessment of loan quality or collateral values changes substantially with respect to one or more loan relationships or portfolios. The allocation of the ACL is based on reasonable and supportable forecasts, historical data, subjective judgment and estimates and therefore, is not necessarily indicative of the specific amounts or loan categories in which charge-offs may ultimately occur. See the Critical Accounting Estimates section of MD&A in our 2021 10-K for additional information on the allowance for credit losses.

50

Table 10 - Allocation of ACL

(in thousands)

	September 30, 2022				December 31, 2021
	ACL			% of loans in each category to total loans	ACL			% of loans in each category to total loans
Owner occupied commercial real estate	$	19,056		18	$	14,282		20
Income producing commercial real estate	31,610			22	24,156			22
Commercial & industrial	20,918			15	16,592			16
Commercial construction	17,954			10	9,956			9
Equipment financing	20,565			9	16,290			9
Total commercial	110,103			74	81,276			76
Residential mortgage	19,335			14	12,390			14
HELOC	8,473			6	6,568			6
Residential construction	2,304			3	1,847			3
Manufactured housing	7,352			2	—			—
Consumer	935			1	451			1
Total ACL - loans	148,502			100	102,532			100
ACL - unfunded commitments	18,798				10,992
Total ACL	$	167,300			$	113,524
ACL - loans as a percentage of total loans	1.00		%		0.87		%
ACL - loans as a percentage of nonaccrual loans HFI	438				312

The increase in the ACL since December 31, 2021 was primarily driven by the acquisition of Reliant, which added $31.1 million to the ACL as of the acquisition date. Of this amount, $12.7 million was reclassified from the amortized cost basis of PCD loans, $15.2 million was recorded as provision for loan losses on acquired non-PCD loan balances and $3.12 million was recorded as provision for unfunded commitments on the acquired balance of unfunded commitments. The increase in the ACL was also attributable to a more negative economic forecast as of September 30, 2022 as compared to prior periods. See Provision for Credit Losses discussion within this MD&A for further information.

51

The following table presents a summary of net charge-offs to average loans for the periods indicated.

Table 11 - Net Charge-offs to Average Loans

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net charge-offs (recoveries)
Owner occupied commercial real estate	$	(90)		$	(93)		$	(1,631)		$	571
Income producing commercial real estate	176			45			(230)			(130)
Commercial & industrial	(744)			(91)			1,883			(2,838)
Commercial construction	10			(123)			(507)			(394)
Equipment financing	1,121			512			2,295			2,324
Residential mortgage	(66)			51			(214)			(51)
HELOC	(102)			(102)			(529)			(287)
Residential construction	(109)			(37)			(208)			(130)
Manufactured housing	220			—			519			—
Consumer	718			389			1,665			725
Total net charge-offs (recoveries)	$	1,134		$	551		$	3,043		$	(210)
Average loans
Owner occupied commercial real estate	$	2,680,906		$	2,132,744		$	2,650,505		$	2,119,457
Income producing commercial real estate	3,274,246			2,526,727			3,291,809			2,555,933
Commercial & industrial	2,237,096			2,041,344			2,285,443			2,348,130
Commercial construction	1,508,481			929,760			1,487,598			945,175
Equipment financing	1,241,322			985,271			1,184,201			938,275
Residential mortgage	2,065,662			1,491,140			1,930,781			1,411,077
HELOC	813,637			656,067			791,673			671,006
Residential construction	400,680			302,466			382,549			286,394
Manufactured housing	292,648			—			278,449			—
Consumer	143,719			139,134			143,462			141,838
Total average loans	$	14,658,397		$	11,204,653		$	14,426,470		$	11,417,285
Net charge-offs to average loans (1)
Owner occupied commercial real estate	(0.01)		%	(0.02)		%	(0.08)		%	0.04		%
Income producing commercial real estate	0.02			0.01			(0.01)			(0.01)
Commercial & industrial	(0.13)			(0.02)			0.11			(0.16)
Commercial construction	—			(0.05)			(0.05)			(0.06)
Equipment financing	0.36			0.21			0.26			0.33
Residential mortgage	(0.01)			0.01			(0.01)			—
HELOC	(0.05)			(0.06)			(0.09)			(0.06)
Residential construction	(0.11)			(0.05)			(0.07)			(0.06)
Manufactured housing	0.30			—			0.25			—
Consumer	1.98			1.11			1.55			0.68
Total	0.03			0.02			0.03			—

(1) Annualized.

52

Nonperforming Assets

The table below summarizes NPAs for the periods indicated. NPAs include nonaccrual loans, OREO and repossessed assets,

Table 12 - NPAs

(in thousands)

	September 30, 2022			December 31, 2021
Nonaccrual loans HFI	33,879			32,812
Nonaccrual loans held for sale	316			—
OREO and repossessed assets	1,316			43
Total NPAs	$	35,511		$	32,855
Nonaccrual loans HFI as a percentage of total loans HFI	0.23		%	0.28		%
NPAs as a percentage of total assets	0.15			0.16

Our policy is to place loans on nonaccrual status when, in the opinion of management, the full principal and interest on a loan is not likely to be collected or when the loan becomes 90 days past due. A loan may continue on accrual after 90 days, however, if it is well collateralized and in the process of collection. When a loan is placed on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Interest payments received on nonaccrual loans are applied to reduce the loan’s amortized cost. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance and future payments are reasonably assured.

Generally, we do not commit to lend additional funds to customers whose loans are on nonaccrual status, although in certain isolated cases, we execute forbearance agreements whereby we agree to continue to fund construction loans to completion or other lines of credit as long as the borrower meets the conditions of the forbearance agreement. We may also fund other amounts necessary to protect collateral such as amounts to pay past due property taxes and insurance coverage.

At September 30, 2022 and December 31, 2021, we had $42.9 million and $52.4 million, respectively, in loans with terms that have been modified in TDRs. Included therein were $5.13 million and $11.5 million, respectively, of TDRs that were classified as nonaccrual and were included in nonperforming loans. The remaining TDRs with an aggregate balance of $37.8 million and $40.9 million, respectively, were performing according to their modified terms and were therefore not considered to be nonperforming assets.

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.

At September 30, 2022 and December 31, 2021, we had HTM debt securities with a carrying amount of $2.68 billion and $1.16 billion, respectively, and AFS debt securities totaling $3.86 billion and $4.50 billion, respectively. During the first nine months of 2022, United transferred AFS debt securities to HTM with a fair value on the transfer date of $1.29 billion, which included unrealized losses recorded in AOCI totaling $87.4 million. No securities were transferred from AFS to HTM during the third quarter of 2022. Transfer date unrealized losses are amortized and reclassified out of AOCI as a yield adjustment, which is offset by discount accretion of the transferred HTM securities. Amortization of transfer date unrealized losses and discount accretion are recognized over the remaining life of the securities. During the first half of 2022, we continued to deploy liquidity generated through strong deposit growth by purchasing additional investment securities. In the third quarter of 2022, we slowed our securities purchases as we began to see some deposit attrition, which absorbed much of our surplus liquidity. At September 30, 2022 and December 31, 2021, the securities portfolio represented approximately 28% and 27%, respectively, of total assets.

In accordance with CECL, our HTM debt securities portfolio is evaluated quarterly to assess whether an ACL is required. We measure expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. At September 30, 2022 and December 31, 2021, calculated credit losses on HTM debt securities were 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.

53

For AFS debt securities in an unrealized loss position, if we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security's amortized cost basis is written down to fair value through income. Absent circumstances where an AFS security would be sold, we evaluate whether the decline in fair value has resulted from credit losses or other factors. The evaluation considers factors such as the extent to which fair value is less than amortized cost, changes to the security’s rating, and adverse conditions specific to the security. If the evaluation indicates a credit loss exists, an ACL may be recorded, with such allowance limited to the amount by which fair value is below amortized cost. Any impairment unrelated to credit factors is recognized in OCI. At September 30, 2022 and December 31, 2021, there was no ACL related to the AFS debt securities portfolio. Unrealized losses on fixed income securities at September 30, 2022 and December 31, 2021 primarily reflected the effect of changes in interest rates.

Goodwill and Other Intangible Assets

Goodwill represents the premium paid for acquired companies above the net fair value of the assets acquired and liabilities assumed, including separately identifiable intangible assets. Management evaluates goodwill annually, or more frequently if necessary, to determine if any impairment exists. At September 30, 2022 and December 31, 2021, the net carrying amount of goodwill was $751 million and $452 million, respectively.

We also have core deposit and customer relationship intangible assets, representing the value of acquired deposit and customer relationships, respectively, which are amortizing intangible assets. Amortizing intangible assets are required to be tested for impairment only when events or circumstances indicate that impairment may exist.

In connection with the acquisition of Reliant in the first quarter of 2022, we recorded goodwill and a core deposit intangible of $299 million and $14.5 million, respectively.

Deposits

Customer deposits are the primary source of funds for the continued growth of our earning assets. Our high level of service, as evidenced by our strong customer satisfaction scores, has been instrumental in attracting and retaining customer deposit accounts. The increase in deposits since December 31, 2021 is mostly driven by the deposits assumed in the Reliant transaction. More recently, we have seen some anticipated balance attrition, mostly in NOW and money market accounts, as rising interest rates have given customers more attractive returns outside of the banking system. Much of the recent decrease in balances is in public funds deposits.

Table 13 - Deposits

(in thousands)

	September 30, 2022		December 31, 2021
Noninterest-bearing demand	$	8,198,129	$	6,956,981
NOW and interest-bearing demand	4,208,731		4,252,209
Money market and savings	6,147,066		5,399,133
Time	1,622,608		1,442,498
Total customer deposits	20,176,534		18,050,821
Brokered deposits	144,608		190,358
Total deposits	$	20,321,142	$	18,241,179

Borrowing Activities

At September 30, 2022 and December 31, 2021, we had long-term debt outstanding of $325 million and $247 million, respectively, which includes senior debentures, subordinated debentures, and trust preferred securities. The increase since December 31, 2021 is a result of the subordinated debt and trust preferred securities assumed in the Reliant acquisition totaling $76.7 million. See Note 9 to the consolidated financial statements for further details.

Contractual Obligations

There have not been any material changes to our contractual obligations since December 31, 2021.

54

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 include commitments to extend credit, letters of credit and financial guarantees.

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

All of these instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. 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 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 included in our 2021 10-K and Note 15 to the consolidated financial statements in this Report for additional information on off-balance sheet arrangements.

Interest Rate Sensitivity Management

The absolute level and volatility of interest rates can have a significant effect on profitability. The 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. 

Net interest revenue and the fair value of financial instruments are influenced by changes in the level of interest rates. We 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 strategies to improve balance sheet positioning and/or earnings, and reviewing interest rate sensitivity. 

One of the tools management uses to estimate and manage the sensitivity of net interest revenue to changes in interest rates is an asset/liability simulation model. Resulting estimates are based upon several assumptions for each scenario, including loan and deposit re-pricing characteristics and the rate of prepayments. The 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 primary objective of the simulation model is to measure the potential change in net interest revenue over time using multiple interest rate scenarios. The base scenario assumes rates remain flat and is the scenario to which all others are compared, in order to measure the change in net interest revenue. Policy limits are based on immediate rate shock scenarios, as well as gradually rising and falling rate scenarios, which are all compared to the base scenario. Our assumptions include floors such that market rates and discount rates do not go below zero. Other scenarios analyzed may include delayed rate shocks, yield curve steepening or flattening, or other variations in rate movements. While the primary policy scenarios focus on a 12-month time frame, longer time horizons are also modeled. 

Our policy is based on the 12-month impact on net interest revenue of interest rate shocks and ramps that increase from 100 to 400 basis points or decrease 100 to 200 basis points from the base scenario. 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. Our policy limits the projected change in net interest revenue over the first 12 months to an 8% decrease for each 100 basis point change in the increasing and decreasing rate ramp and shock scenarios. The following table presents our interest sensitivity position at the dates indicated.

55

Table 14 - Interest Sensitivity

(in thousands)

	Increase (Decrease) in Net Interest Revenue from Base Scenario at
	September 30, 2022				December 31, 2021
Change in Rates	Shock		Ramp		Shock		Ramp
200 basis point increase	8.65	%	5.33	%	8.02	%	4.76	%
100 basis point increase	4.45		3.60		3.87		3.07
100 basis point decrease	(5.21)		(4.17)		(4.45)		(3.80)
200 basis point decrease	(12.45)		(7.46)		(5.54)		(4.51)

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 seeks 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.

We have discretion in the extent and timing of deposit repricing depending upon the competitive pressures in the markets in which we operate. Changes in the mix of earning assets or supporting liabilities can either increase or decrease the net interest margin without affecting interest rate sensitivity. The interest rate spread between an asset and its supporting liability can vary significantly even when the timing of repricing for both the asset and the liability remains the same, due to the two instruments repricing according to different indices. This is commonly referred to as basis risk.

Derivative financial instruments are used to manage interest rate sensitivity. These contracts generally consist of interest rate swaps under which we pay a variable rate (or fixed rate, as the case may be) and receive a fixed rate (or variable rate, as the case may be). In addition, investment securities and wholesale funding strategies are used to manage interest rate risk.

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 effective economic hedges. Derivative financial instruments that are not accounted for as accounting hedges are marked to market through earnings.

Our policy requires all non-customer derivative financial instruments be used only for asset/liability management through the hedging of specific transactions, positions or risks, and not for trading or speculative purposes. Management believes that the risk associated with using derivative financial instruments to mitigate interest rate risk sensitivity is appropriately monitored and controlled and will not have any material adverse effect on financial condition or results of operations. In order to mitigate potential credit risk, from time to time we may require the counterparties to derivative contracts to pledge cash and/or securities as collateral to cover the net exposure. 

Liquidity 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. Liquidity management involves maintaining the ability to meet the daily cash flow requirements of customers, both depositors and borrowers. The primary objective is to ensure that sufficient funding is available, at a reasonable cost, to meet ongoing operational cash needs and to take advantage of revenue producing opportunities as they arise. 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. To assist in determining the adequacy of our liquidity, we perform a variety of liquidity stress tests. 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.

An important part of the Bank’s liquidity resides in the asset portion of the balance sheet, which provides liquidity primarily through loan interest and principal repayments and the maturities and sales of securities, as well as the ability to use these assets as collateral for borrowings on a secured basis.

The Bank’s main source of liquidity is customer interest-bearing and noninterest-bearing deposit accounts. Liquidity is also available from wholesale funding sources consisting primarily of Federal funds purchased, FHLB advances, and brokered deposits. These

56

sources of liquidity are generally short-term in nature and are used as necessary to fund asset growth and meet other short-term liquidity needs. 

In addition, 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 declared for its common and preferred 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 and maintains a line of credit as a contingent funding source, the ultimate sources of its liquidity are subsidiary service fees and dividends from the Bank, which are limited by applicable law and regulations. A South Carolina state-chartered bank is permitted to pay a dividend of up to 100% of its current year earnings without requesting approval of the South Carolina Board of Financial Institutions, provided certain conditions are met. Holding Company liquidity is managed to a minimum of 15-months of anticipated cash expenditures after considering all of its liquidity needs over this period.

At September 30, 2022, we had sufficient qualifying collateral to provide borrowing capacity for FHLB advances of $1.54 billion and Federal Reserve discount window borrowing capacity of $2.44 billion. We also had unpledged investment securities of $4.58 billion that could be used as collateral for additional borrowings. In addition, we have the ability to attract retail deposits by competing more aggressively on pricing.

Significant uses and sources of cash during the nine months ended September 30, 2022 are as follows. See the consolidated statement of cash flows for further detail.

•Net cash provided by operating activities of $508 million reflects net income of $196 million adjusted for non-cash transactions, gains and losses on sales of securities and other loans, a decrease in loans held for sale of $136 million and changes in other assets and liabilities. Significant non-cash transactions for the period included a $44.1 million provision for credit losses and net depreciation, amortization, and accretion of $34.7 million.

•Net cash used in investing activities of $1.84 billion primarily consisted of purchases of AFS and HTM debt securities of $1.99 billion and a net increase in loans of $773 million, partially offset by proceeds from securities sales, maturities and calls of $916 million.

•Net cash used in financing activities of $499 million was driven by a net decrease in deposits of $424 million, combined with dividends on common and preferred stock of $68.4 million.

In the opinion of management, our liquidity position at September 30, 2022 was sufficient to meet our expected cash flow requirements for the foreseeable future.

Capital Resources and Dividends

Shareholders’ equity at September 30, 2022 was $2.63 billion, an increase of $412 million from December 31, 2021 primarily due to equity issued in the Reliant acquisition and year-to-date earnings partially offset by dividends declared and unrealized losses on AFS debt securities.

The following table shows capital ratios, as calculated under applicable regulatory guidelines, at September 30, 2022 and December 31, 2021. As of September 30, 2022, capital levels remained characterized as “well-capitalized” under regulatory requirements in effect at the time. Additional information related to capital ratios is provided in Note 14 to the consolidated financial statements.

Table 15 - Capital Ratios

							United Community Banks, Inc. (Consolidated)				United Community Bank
	Minimum		Well- Capitalized		Minimum Capital Plus Capital Conservation Buffer		September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	7.0	%	12.13	%	12.46	%	12.94	%	12.87	%
Tier 1 capital	6.0		8.0		8.5		12.68		13.17		12.94		12.87
Total capital	8.0		10.0		10.5		14.62		14.65		13.75		13.46
Leverage ratio	4.0		5.0		N/A		9.41		8.75		9.58		8.53

57

Effect of Inflation and Changing Prices

A bank’s asset and liability structure is substantially different from that of an industrial firm in that primarily all assets and liabilities of a bank are 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 normal rates in order to maintain an appropriate equity to assets ratio.

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 manage interest rate sensitivity. In addition, periodic reviews of banking services and products are conducted to adjust pricing in view of current and expected costs.

58

Item 3.    Quantitative and Qualitative Disclosure About Market Risk

There have been no material changes in our market risk as of September 30, 2022 from that presented in our 2021 10-K. Our interest rate sensitivity position at September 30, 2022 is set forth in Table 14 in MD&A of this Report and incorporated herein by this reference.

Item 4.    Controls and Procedures

    (a) Disclosure Controls and Procedures. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures (as such term is defined in Exchange Act Rule 13a-15(e)) as of September 30, 2022. Based on that evaluation, our principal executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

    (b) Changes in Internal Control Over Financial Reporting. No change in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) occurred during the fiscal quarter ended September 30, 2022 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

59

Part II. OTHER INFORMATION 

Item 1. Legal Proceedings

In the ordinary course of business, the Holding Company and the Bank are parties to various legal proceedings. Additionally, in the ordinary course of business, the Holding Company and the Bank are subject to regulatory examinations and investigations. Based on our current knowledge and advice of counsel, in the opinion of management there is no such pending or threatened legal matter which would result in a material adverse effect upon our consolidated financial condition or results of operations.

Items 1A. Risk Factors

Except with respect to the additional risk factors related to the proposed Progress acquisition, which are set forth in the final prospectus filed with the SEC pursuant to Rule 424(b)(3) on July 12, 2022 (and incorporated herein by this reference), there have been no material changes to the risk factors previously disclosed in the 2021 10-K.

Item 5. Other Information

On November 1, 2022, the Talent and Compensation Committee of the Board (the “Committee”) approved the termination of the change in control severance agreements between the Holding Company and its executive officers, including H. Lynn Harton, Jefferson L. Harralson, Richard W. Bradshaw, Robert A. Edwards and Melinda Davis Lux after a review process that determined the agreements were outdated in several respects. The current form of the Holding Company’s change in control agreements, which was originally adopted for the Holding Company’s executive officers in March of 2015, provided severance benefits to the Holding Company’s executive officers in the event of a termination of employment for specified reasons in connection with a change in control of the Holding Company. The review of the agreements was undertaken by the Committee in the ordinary course of reviewing compensation arrangements applicable to the Holding Company’s executive officers. The Committee is in the process of considering the development of new change in control agreements for the Holding Company’s executive officers, which the Committee would anticipate implementing in the coming months. In connection with the termination of the change in control agreements, each of the executive officers entered into a letter agreement agreeing thereto.

The foregoing description of the change in control agreement termination letter agreement is qualified in its entirety by the terms of such letter, the form of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.

60

Item 6. Exhibits

(d)     Exhibits. See Exhibit Index below.

EXHIBIT INDEX
Exhibit No.	Description
3.1	Restated Articles of Incorporation of United Community Banks, Inc. as amended through August 13, 2021 (incorporated herein by reference to Exhibit 3.1 to United Community Bank Inc.'s Quarterly Report on Form 10-Q for the period ended September 30, 2021, filed on November 5, 2021.
3.2	Amended and Restated Bylaws of United Community Banks, Inc., as amended (incorporated herein by reference to Exhibit 3.2 to United Community Banks, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2015, filed with the SEC on May 11, 2015).
10.1	Form of Change in Control Agreement Termination Letter Agreement, dated November 1, 2022, between United Community Banks, Inc. and each of H. Lynn Harton, Jefferson L. Harralson, Richard W. Bradshaw, Robert A. Edwards, Melinda Davis Lux, Mark A. Terry and Holly N. Berry.
31.1	Certification by H. Lynn Harton, President and Chief Executive Officer of United Community Banks, Inc., pursuant to Exchange Act Rule 13a-14(a).
31.2	Certification by Jefferson L. Harralson, Executive Vice President and Chief Financial Officer of United Community Banks, Inc., pursuant to Exchange Act Rule 13a-14(a).
32	Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350.
101	Interactive data files for United Community Bank, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL: (i) the Consolidated Balance Sheets (unaudited); (ii) the Consolidated Statements of Income (unaudited); (iii) the Consolidated Statements of Comprehensive Income (unaudited); (iv) the Consolidated Statements in Shareholders’ Equity (unaudited); (v) the Consolidated Statements of Cash Flows (unaudited); and (vi) the Notes to Consolidated Financial Statements (unaudited).
104	The cover page from United Community Bank’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (formatted in Inline XBRL and included in Exhibit 101)

61

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

UNITED COMMUNITY BANKS, INC.

/s/ H. Lynn Harton

H. Lynn Harton

President and Chief Executive Officer

(Principal Executive Officer)

/s/ Jefferson L. Harralson

Jefferson L. Harralson

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

/s/ Alan H. Kumler

Alan H. Kumler

Senior Vice President and Chief Accounting Officer

(Principal Accounting Officer)

Date: November 4, 2022

62

EX-10.1

Exhibit 10.1

    November 1, 2022

By Hand

[Name of Executive

Title of Executive]1

2 W. Washington St. Suite 700 

Greenville, South Carolina 29601

    Re: Termination of Change in Control Severance Agreement

Dear [Name of Executive]:

United Community Banks, Inc. (the “Company”) is undergoing a review of its executive compensation arrangements. In connection therewith, the Company desires to terminate the United Community Banks, Inc. Change in Control Severance Agreement, dated [•]2 (the “CIC Agreement”) by and between you and the Company. Accordingly, pursuant to Section 1 of the CIC Agreement, you and the Company agree that the CIC Agreement shall be terminated effective as of November 1, 2022. You acknowledge and further agree that the termination of the CIC Agreement does not constitute a termination of your employment or serve as the basis for a claim for termination by you for “good reason” (or any similar term) under any employment or compensation arrangement with the Company, including the CIC Agreement, any equity award (including any restricted stock unit award, performance-based restricted stock award or stock option award) or any other employment or compensation arrangement.

Please read this letter agreement carefully. If you are in agreement with the terms of this letter agreement, please then sign and return this letter agreement to [•].

Sincerely,

[Melinda Davis Lux
                            Executive Vice President, General Counsel and

Corporate Secretary]3

Executive Acceptance

I agree to the termination of the CIC Agreement and the other terms of this letter agreement.

_________________________

[Name of Executive]

1 H. Lynn Harton, President & Chief Executive Officer; Jefferson L. Harralson, Chief Financial Officer; Richard W. Bradshaw, Executive Vice President & Chief Banking Officer; Robert A. Edwards, Executive Vice President & Chief Risk Officer; Melinda Davis Lux, Executive Vice President, General Counsel and Corporate Secretary; Mark A. Terry, Chief Information Officer; and Holly N. Berry, Chief Human Resources Officer

2 Insert date of CIC Agreement

3 Signature by H. Lynn Harton for letter to Melinda Davis Lux

EX-31.1

Exhibit 31.1

I, H. Lynn Harton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2022
	/s/ H. Lynn Harton
	H. Lynn Harton
	President and Chief Executive Officer of the Registrant

EX-31.2

Exhibit 31.2

I, Jefferson L. Harralson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

Date: November 4, 2022
	/s/ Jefferson L. Harralson
	Jefferson L. Harralson
	Executive Vice President and Chief Financial Officer of the Registrant

EX-32

Exhibit 32

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of United Community Banks, Inc. (“United”) on Form 10-Q for the period ending September 30, 2022 filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of United certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of United.

	/s/ H. Lynn Harton
Name:	H. Lynn Harton
Title:	President and Chief Executive Officer
Date:	November 4, 2022
	/s/ Jefferson L. Harralson
Name:	Jefferson L. Harralson
Title:	Executive Vice President and Chief Financial Officer
Date:	November 4, 2022

XML

Cover - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-35095
Entity Registrant Name	UNITED COMMUNITY BANKS, INC.
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1807304
Entity Address, Address Line One	125 Highway 515 East
Entity Address, City or Town	Blairsville
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30512
City Area Code	706
Local Phone Number	781-2265
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		106,169,829
Entity Central Index Key	0000857855
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common stock, par value $1 per share
Entity Listings [Line Items]
Title of 12(b) Security	Common stock, par value $1 per share
Trading Symbol	UCBI
Security Exchange Name	NASDAQ
Depositary shares, each representing 1/1000th interest in a share of Series I Non-Cumulative Preferred Stock
Entity Listings [Line Items]
Title of 12(b) Security	Depositary shares, each representing 1/1000th interest in a share of Series I Non-Cumulative Preferred Stock
Trading Symbol	UCBIO
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 222,524	$ 144,244
Interest-bearing deposits in banks	216,496	2,147,266
Federal funds and other short-term investments	45,000	27,000
Cash and cash equivalents	484,020	2,318,510
Debt securities available-for-sale	3,862,886	4,496,824
Debt securities held-to-maturity (fair value $2,241,160 and $1,148,804, respectively)	2,676,405	1,156,098
Loans held for sale	21,967	44,109
Loans and leases held for investment	14,882,484	11,760,346
Less allowance for credit losses - loans and leases	(148,502)	(102,532)
Loans and leases, net	14,733,982	11,657,814
Premises and equipment, net	288,597	245,296
Bank owned life insurance	300,365	217,713
Goodwill and other intangible assets, net	780,868	472,407
Other assets	538,765	338,000
Total assets	23,687,855	20,946,771
Deposits:
Noninterest-bearing demand	8,198,129	6,956,981
Interest-bearing deposits	12,123,013	11,284,198
Total deposits	20,321,142	18,241,179
Long-term debt	324,515	247,360
Accrued expenses and other liabilities	407,488	235,987
Total liabilities	21,053,145	18,724,526
Shareholders' equity:
Preferred stock, $1 par value: 10,000,000 shares authorized; 4,000 shares Series I issued and outstanding; $25,000 per share liquidation preference	96,422	96,422
Common stock, $1 par value: 200,000,000 shares authorized, 106,162,861 and 89,349,826 shares issued and outstanding, respectively	106,163	89,350
Common stock issuable: 596,365 and 595,705 shares, respectively	11,966	11,288
Capital surplus	2,304,514	1,721,007
Retained earnings	452,788	330,654
Accumulated other comprehensive loss	(337,143)	(26,476)
Total shareholders' equity	2,634,710	2,222,245
Total liabilities and shareholders' equity	$ 23,687,855	$ 20,946,771

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
HTM debt securities	$ 2,241,160,000	$ 1,148,804,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock authorized (in shares)	10,000,000	10,000,000
Preferred stock issued (in shares)	4,000	4,000
Preferred stock liquidation preference (in dollars per share)	$ 25,000	$ 25,000
Preferred stock outstanding (in shares)	4,000	4,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock authorized (in shares)	200,000,000	200,000,000
Common stock issued (in shares)	106,162,861	89,349,826
Common stock outstanding (in shares)	106,162,861	89,349,826
Common stock issuable (in shares)	596,365	595,705

XML

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest revenue:
Loans, including fees	$ 174,065	$ 128,477	$ 476,072	$ 382,261
Investment securities, including tax exempt of $2,568, $2,280, $7,762 and $6,685, respectively	36,953	18,540	91,043	51,530
Deposits in banks and short-term investments	2,869	658	5,209	1,235
Total interest revenue	213,887	147,675	572,324	435,026
Interest expense:
Deposits	9,880	3,142	17,313	11,981
Short-term borrowings	27	0	27	2
Long-term debt	4,206	3,494	12,515	11,564
Total interest expense	14,113	6,636	29,855	23,547
Net interest revenue	199,774	141,039	542,469	411,479
Provision for (release of) credit losses	15,392	(11,034)	44,082	(36,903)
Net interest revenue after provision for credit losses	184,382	152,073	498,387	448,382
Noninterest income:
Wealth management fees	5,879	5,554	17,759	12,881
Gains from sales of other loans, net	2,228	2,353	9,226	7,506
Lending and loan servicing fees	2,946	2,825	7,518	7,070
Securities gains (losses), net	0	0	(3,688)	41
Other	5,003	6,185	15,474	20,352
Total noninterest income	31,922	40,095	104,353	120,641
Total revenue	216,304	192,168	602,740	569,023
Noninterest expenses:
Salaries and employee benefits	67,823	60,458	208,062	180,457
Communications and equipment	8,795	7,368	27,718	21,979
Occupancy	9,138	7,096	27,381	21,130
Advertising and public relations	2,544	1,458	6,332	4,150
Postage, printing and supplies	2,190	1,731	6,308	5,171
Professional fees	4,821	5,347	14,670	14,509
Lending and loan servicing expense	2,333	2,450	7,746	8,508
Outside services - electronic banking	3,159	2,308	8,629	6,811
FDIC assessments and other regulatory charges	2,356	1,723	6,796	5,520
Amortization of intangibles	1,678	1,028	5,207	2,942
Merger-related and other charges	1,746	1,437	17,905	4,058
Other	6,172	4,345	16,066	12,248
Total noninterest expenses	112,755	96,749	352,820	287,483
Income before income taxes	103,549	95,419	249,920	281,540
Income tax expense	22,388	21,603	53,898	63,758
Net income	81,161	73,816	196,022	217,782
Net income available to common shareholders, basic	79,035	71,649	189,858	211,283
Net income available to common shareholders, diluted	$ 79,035	$ 71,649	$ 189,858	$ 211,283
Net income per common share:
Basic (in dollars per share)	$ 0.74	$ 0.82	$ 1.78	$ 2.42
Diluted (in dollars per share)	$ 0.74	$ 0.82	$ 1.78	$ 2.42
Weighted average common shares outstanding:
Basic (in shares)	106,687	87,211	106,616	87,274
Diluted (in shares)	106,800	87,355	106,732	87,413
Service charges and fees
Noninterest income:
Service charges and other related fees	$ 9,569	$ 9,350	$ 28,644	$ 25,255
Mortgage loan gains and other related fees
Noninterest income:
Service charges and other related fees	$ 6,297	$ 13,828	$ 29,420	$ 47,536

XML

Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Investment securities, tax exempt	$ 2,568	$ 2,280	$ 7,762	$ 6,685

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income, Before-tax Amount	$ 103,549	$ 95,419	$ 249,920	$ 281,540
Net income, Tax (Expense) Benefit	(22,388)	(21,603)	(53,898)	(63,758)
Net income	81,161	73,816	196,022	217,782
Unrealized losses on available-for-sale securities:
Unrealized holding losses, Before-tax Amount	(104,754)	(18,915)	(429,607)	(58,882)
Unrealized holding losses, Tax (Expense) Benefit	24,495	4,686	101,269	15,766
Unrealized holding losses, Net of Tax Amount	(80,259)	(14,229)	(328,338)	(43,116)
Reclassification of securities from available-for-sale to held-to-maturity, Before-tax Amount	0		87,444
Reclassification of securities from available-for-sale to held-to-maturity, Tax (Expense) Benefit	0		(20,770)
Reclassification of securities from available-for-sale to held-to-maturity, Net of Tax Amount	0		66,674
Realized (gains) losses included in net income, Before-tax Amount	0	0	3,688	(41)
Realized (gains) losses included in net income, Tax (Expense) Benefit	0	0	(979)	14
Realized (gains) losses included in net income, Net of Tax Amount	0	0	2,709	(27)
Net unrealized losses, Before-tax Amount	(104,754)	(18,915)	(338,475)	(58,923)
Net unrealized losses, Tax (Expense) Benefit	24,495	4,686	79,520	15,780
Net unrealized losses, Net of Tax Amount	(80,259)	(14,229)	(258,955)	(43,143)
Unrealized losses on held-to-maturity securities transferred from available-for-sale:
Reclassification of unrealized losses, Before-tax Amount	0		(87,444)
Reclassification of unrealized losses, Tax (Expense) Benefit	0		20,770
Reclassification of unrealized losses, Net of Tax Amount	0		(66,674)
Amortization of unrealized losses, Before-tax amount	4,473		6,242
Amortization of unrealized losses, Tax (Expense) Benefit	(1,073)		(1,495)
Amortization of unrealized losses, , Net of Tax Amount	3,400		4,747
Net activity, Before-tax Amount	4,473		(81,202)
Net activity, Tax (Expense) Benefit	(1,073)		19,275
Net activity, Net of Tax Amount	3,400		(61,927)
Derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivatives, Before-tax Amount	5,034	431	12,914	3,475
Unrealized holding gains (losses) on derivatives, Tax (Expense) Benefit	(1,286)	(111)	(3,299)	(888)
Unrealized holding gains (losses) on derivatives, Net of Tax Amount	3,748	320	9,615	2,587
Losses on derivative instruments realized in net income, Before-tax Amount	48	153	295	444
Losses on derivative instruments realized in net income, Tax (Expense) Benefit	(12)	(39)	(75)	(113)
Losses on derivative instruments realized in net income, Net of Tax Amount	36	114	220	331
Net cash flow hedge activity, Before-tax Amount	5,082	584	13,209	3,919
Net cash flow hedge activity, Tax (Expense) Benefit	(1,298)	(150)	(3,374)	(1,001)
Net cash flow hedge activity, Net of tax Amount	3,784	434	9,835	2,918
Amortization of defined benefit pension plan net periodic pension cost components, Before-tax Amount	169	260	510	782
Amortization of defined benefit pension plan net periodic pension cost components, Tax (Expense) Benefit	(43)	(66)	(130)	(200)
Amortization of defined benefit pension plan net periodic pension cost components, Net of Tax Amount	126	194	380	582
Total other comprehensive income (loss), Before-tax Amount	(95,030)	(18,071)	(405,958)	(54,222)
Total other comprehensive income (loss), Tax (Expense) Benefit	22,081	4,470	95,291	14,579
Total other comprehensive income (loss), Net of Tax Amount	(72,949)	(13,601)	(310,667)	(39,643)
Comprehensive income (loss), Before-tax Amount	8,519	77,348	(156,038)	227,318
Comprehensive income (loss), Tax (Expense) Benefit	(307)	(17,133)	41,393	(49,179)
Comprehensive income (loss), Net of Tax Amount	$ 8,212	$ 60,215	$ (114,645)	$ 178,139

XML

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Common Stock Issuable	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2020		86,675,279
Beginning balance at Dec. 31, 2020	$ 2,007,530	$ 86,675	$ 96,422	$ 10,855	$ 1,638,999	$ 136,869	$ 37,710
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	217,782					217,782
Other comprehensive loss	(39,643)						(39,643)
Common stock issued/impact of acquisitions (in shares)		132,299
Common stock issued/impact of acquisitions	4,401	$ 133			4,268
Purchases of common stock (in shares)		(492,744)
Purchases of common stock	(15,101)	$ (493)			(14,608)
Preferred stock dividends	(5,157)					(5,157)
Common stock dividends	(50,991)					(50,991)
Impact of equity-based compensation awards (in shares)		171,938
Impact of equity-based compensation awards	2,870	$ 172		992	1,706
Impact of other United sponsored equity plans (in shares)		71,875
Impact of other United sponsored equity plans	667	$ 72		(749)	1,344
Ending balance (in shares) at Sep. 30, 2021		86,558,647
Ending balance at Sep. 30, 2021	2,122,358	$ 86,559	96,422	11,098	1,631,709	298,503	(1,933)
Beginning balance (in shares) at Jun. 30, 2021		86,664,894
Beginning balance at Jun. 30, 2021	2,086,286	$ 86,665	96,422	10,650	1,636,875	244,006	11,668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73,816					73,816
Other comprehensive loss	(13,601)						(13,601)
Common stock issued/impact of acquisitions (in shares)		132,299
Common stock issued/impact of acquisitions	4,401	$ 133			4,268
Purchases of common stock (in shares)		(342,744)
Purchases of common stock	(10,000)	$ (343)			(9,657)
Preferred stock dividends	(1,719)					(1,719)
Common stock dividends	(17,600)					(17,600)
Impact of equity-based compensation awards (in shares)		101,093
Impact of equity-based compensation awards	582	$ 101		345	136
Impact of other United sponsored equity plans (in shares)		3,105
Impact of other United sponsored equity plans	193	$ 3		103	87
Ending balance (in shares) at Sep. 30, 2021		86,558,647
Ending balance at Sep. 30, 2021	2,122,358	$ 86,559	96,422	11,098	1,631,709	298,503	(1,933)
Beginning balance (in shares) at Dec. 31, 2021		89,349,826
Beginning balance at Dec. 31, 2021	2,222,245	$ 89,350	96,422	11,288	1,721,007	330,654	(26,476)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	196,022					196,022
Other comprehensive loss	(310,667)						(310,667)
Common stock issued/impact of acquisitions (in shares)		16,571,545
Common stock issued/impact of acquisitions	596,376	$ 16,571			579,805
Preferred stock dividends	(5,157)					(5,157)
Common stock dividends	(68,731)					(68,731)
Impact of equity-based compensation awards (in shares)		175,843
Impact of equity-based compensation awards	4,904	$ 176		1,843	2,885
Impact of other United sponsored equity plans (in shares)		65,647
Impact of other United sponsored equity plans	(282)	$ 66		(1,165)	817
Ending balance (in shares) at Sep. 30, 2022		106,162,861
Ending balance at Sep. 30, 2022	2,634,710	$ 106,163	96,422	11,966	2,304,514	452,788	(337,143)
Beginning balance (in shares) at Jun. 30, 2022		106,033,960
Beginning balance at Jun. 30, 2022	2,651,288	$ 106,034	96,422	11,448	2,304,608	396,970	(264,194)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81,161					81,161
Other comprehensive loss	(72,949)						(72,949)
Preferred stock dividends	(1,719)					(1,719)
Common stock dividends	(23,624)					(23,624)
Impact of equity-based compensation awards (in shares)		126,400
Impact of equity-based compensation awards	347	$ 126		389	(168)
Impact of other United sponsored equity plans (in shares)		2,501
Impact of other United sponsored equity plans	206	$ 3		129	74
Ending balance (in shares) at Sep. 30, 2022		106,162,861
Ending balance at Sep. 30, 2022	$ 2,634,710	$ 106,163	$ 96,422	$ 11,966	$ 2,304,514	$ 452,788	$ (337,143)

XML

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 0.22	$ 0.20	$ 0.64	$ 0.58

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net income	$ 196,022	$ 217,782
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	34,707	(8,082)
Provision for (release of) credit losses	44,082	(36,903)
Stock based compensation	6,649	4,814
Deferred income tax expense	6,063	21,290
Securities losses (gains), net	3,688	(41)
Gains from sales of other loans, net	(9,226)	(7,506)
Changes in assets and liabilities:
Other assets	(2,072)	32,952
Accrued expenses and other liabilities	92,084	21,597
Loans held for sale	136,405	37,009
Net cash provided by operating activities	508,402	282,912
Debt securities held-to-maturity:
Proceeds from maturities and calls	140,253	51,770
Purchases	(326,494)	(716,399)
Debt securities available-for-sale:
Proceeds from sales	281,521	103,012
Proceeds from maturities and calls	493,848	709,435
Purchases	(1,665,466)	(1,909,879)
Net (increase) decrease in loans	(772,740)	234,855
Equity investments, outflows	(29,685)	(12,664)
Equity investments, inflows	17,336	7,007
Proceeds from sales of premises and equipment	4,846	2,272
Purchases of premises and equipment	(26,300)	(19,733)
Net cash received in (paid for) acquisition	35,243	(9,484)
Proceeds from sale of other real estate and repossessed assets	2,178	2,404
Other investing outflows	0	(210)
Other investing inflows	1,819	767
Net cash used in investing activities	(1,843,641)	(1,556,847)
Financing activities:
Net (decrease) increase in deposits	(423,750)	1,634,947
Repayment of long-term debt	0	(80,632)
Proceeds from FHLB advances	0	10,000
Repayment of FHLB advances	0	(10,000)
Repurchase of common stock	0	(15,101)
Cash dividends on common stock	(63,256)	(49,313)
Cash dividends on preferred stock	(5,157)	(5,157)
Other financing inflows	560	406
Other financing outflows	(7,648)	(2,041)
Net cash (used in) provided by financing activities	(499,251)	1,483,109
Net change in cash and cash equivalents	(1,834,490)	209,174
Cash and cash equivalents, beginning of period	2,318,510	1,608,619
Cash and cash equivalents, end of period	$ 484,020	$ 1,817,793

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

United’s accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its 2021 10-K.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in United’s 2021 10-K.

XML

Accounting Standards Updates and Recently Adopted Standards

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Updates and Recently Adopted Standards

Accounting Standards Updates and Recently Adopted Standards

Recently Adopted Standards

In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments. The update amends the lease classification requirements for lessors to align them with practice under the former lease accounting standard. Specifically, lessors should classify a lease with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. United adopted this update as of January 1, 2022, with no material impact on the consolidated financial statements.

Recently Issued Standards

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. The update expands the current last-of-layer method to a portfolio layer method which allows multiple hedged layers of a single closed portfolio and non-prepayable financial assets. In addition, the update specifies that eligible hedging instruments may include spot-starting or forward-starting swaps and that the number of hedged layers corresponds with the number of hedges designated. Finally, the update provides additional guidance on the accounting for and disclosure of hedge basis adjustments. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The update eliminates the previous accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The update also requires that an entity disclose current-period gross charge-offs by year of origination. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account and, therefore, is not considered in measuring fair value. For public entities, this guidance is effective for fiscal years beginning after December 15, 2023. United does not expect the new guidance to have a material impact on the consolidated financial statements.

XML

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

The supplemental schedule of significant non-cash investing and financing activities for the nine months ended September 30, 2022 and 2021 is as follows (in thousands).

	Nine Months Ended September 30,
	2022		2021
Significant non-cash investing and financing transactions:
Transfers of loans to repossessed and foreclosed properties	$	2,566	$	1,712
Unsettled securities purchases	—		3,977
Transfers of AFS securities to HTM securities	1,288,982		—
Right-of-use assets obtained in exchange for lease liabilities	9,035		1,543
Acquisitions:
Assets acquired	3,254,173		22,823
Liabilities assumed	2,657,173		1,103
Net assets acquired	597,000		21,720
Common stock issued and options converted	596,376		4,401
Accrued purchase price and contingent consideration	—		7,700

XML

Acquisitions

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Acquisition of Reliant

On January 1, 2022, United acquired all of the outstanding common stock of Reliant in a stock transaction. Reliant operated a 25-branch network primarily located in Middle Tennessee. United’s operating results for the three and nine months ended September 30, 2022 include the operating results of the acquired business for the period subsequent to the acquisition date of January 1, 2022.

The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below (in thousands). 

Reliant
	Fair Value Recorded by United (1)
		January 1, 2022
	Assets
	Cash and cash equivalents	$	62,867
	Debt securities	249,107
	Loans held for sale	116,406
	Loans held for investment	2,320,737
	Premises and equipment	35,631
	Bank-owned life insurance	78,170
	Accrued interest receivable	12,027
	Net deferred tax asset	5,793
	Core deposit intangible	14,500
	Other assets	59,768
	Total assets acquired	$	2,955,006
	Liabilities
	Deposits	$	2,504,823
	Short-term borrowings	27,000
	Long-term debt	76,730
	Other liabilities	48,620
	Total liabilities assumed	2,657,173
	Total identifiable net assets	297,833
	Consideration transferred
	Cash	624
	Common stock issued (16,571,545 shares)	595,581
	Options converted	795
	Total fair value of consideration transferred	597,000
	Goodwill	$	299,167

(1) Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Goodwill represents the intangible value of Reliant’s business and reputation within the markets it served and is not expected to be deductible for income tax purposes. The Reliant core deposit intangible will be amortized over its expected useful life of 10 years using the sum-of-the-years-digits method.

The following table presents additional information related to the acquired Reliant loan portfolio at the acquisition date (in thousands).

	January 1, 2022
PCD loans:
Par value	$	258,462
ACL at acquisition	(12,737)
Non-credit discount	(3,294)
Purchase price	$	242,431
Non-PCD loans:
Fair value	$	2,078,306
Gross contractual amounts receivable	2,355,205
Estimate of contractual cash flows not expected to be collected	25,990

Pro forma information

The following table discloses the impact of the Reliant acquisition since the date of acquisition. The table also presents certain pro forma information as if Reliant had been acquired on January 1, 2021 and FinTrust had been acquired January 1, 2020. These results combine the historical results of the acquired entity with United’s consolidated statement of income. Adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity; however pro forma financial results presented are not necessarily indicative of what would have occurred had the acquisition taken place in earlier years.

Merger-related costs from the Reliant acquisition of $760,000 and $14.8 million have been excluded from the three and nine months ended September 30, 2022 pro forma information presented below and included in the three and nine months ended September 30, 2021 pro forma information presented below. Merger-related costs from the FinTrust acquisition of $262,000 and $515,000, respectively, have been excluded from the three and nine months ended September 30, 2021 pro forma information presented below. The actual results and pro forma information were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	Revenue		Net Income		Revenue		Net Income
2022
Actual Reliant results included in statement of income since acquisition date	$	29,618	$	16,516	$	72,685	$	32,931
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021	216,171		81,681		618,636		219,010
2021
Actual FinTrust results included in statement of income since acquisition date	$	2,017	$	(49)	$	2,017	$	(49)
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021 and FinTrust had been acquired January 1, 2020	$	232,667	$	86,576	$	672,405	$	233,053

Announced Acquisition of Progress

On May 4, 2022, United announced an agreement to acquire Progress Financial Corporation and its wholly-owned subsidiary, Progress Bank & Trust, collectively referred to as “Progress”. Progress is headquartered in Huntsville, Alabama, and operates 14 offices in high-growth southeastern markets, including Huntsville, Birmingham, Daphne and Tuscaloosa in Alabama and the Florida Panhandle. As of September 30, 2022, Progress had total assets of $1.74 billion, total loans of $1.41 billion, and total deposits of $1.50 billion. The merger, which is subject to regulatory approval and other customary conditions, is expected to close in the first quarter of 2023.

XML

Investment Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

During the first nine months of 2022, United transferred AFS debt securities to HTM with a fair value on the transfer date of $1.29 billion, which included unrealized losses recorded in AOCI totaling $87.4 million. No securities were transferred from AFS to HTM during the third quarter of 2022. Transfer date unrealized losses are amortized and reclassified out of AOCI as a yield adjustment, which is offset by discount accretion of the transferred HTM securities. Amortization of transfer date unrealized losses and discount accretion are recognized over the remaining life of the securities.

The amortized cost basis, unrealized gains and losses and fair value of HTM debt securities as of the dates indicated are as follows (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	19,826	$	—	$	2,573	$	17,253
U.S. Government agencies & GSEs	99,620		—		18,275		81,345
State and political subdivisions	301,520		45		70,180		231,385
Residential MBS, Agency & GSEs	1,519,094		14		227,307		1,291,801
Commercial MBS, Agency & GSEs	721,345		—		114,360		606,985
Supranational entities	15,000		—		2,609		12,391
Total	$	2,676,405	$	59	$	435,304	$	2,241,160
As of December 31, 2021
U.S. Treasuries	$	19,803	$	20	$	—	$	19,823
U.S. Government agencies & GSEs	70,180		—		1,121		69,059
State and political subdivisions	257,688		4,341		4,080		257,949
Residential MBS, Agency & GSEs	381,641		2,021		3,687		379,975
Commercial MBS, Agency & GSEs	411,786		4,106		8,915		406,977
Supranational entities	$	15,000	$	21	$	—	$	15,021
Total	$	1,156,098	$	10,509	$	17,803	$	1,148,804

The amortized cost basis, unrealized gains and losses, and fair value of AFS debt securities as of the dates indicated are presented below (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	194,301	$	—	$	15,828	$	178,473
U.S. Government agencies & GSEs	272,492		655		17,121		256,026
State and political subdivisions	348,099		—		32,597		315,502
Residential MBS, Agency & GSEs	1,658,924		6		161,282		1,497,648
Residential MBS, Non-agency	382,185		—		22,943		359,242
Commercial MBS, Agency & GSEs	747,238		584		74,751		673,071
Commercial MBS, Non-agency	31,676		—		1,144		30,532
Corporate bonds	252,486		59		26,635		225,910
Asset-backed securities	333,665		10		7,193		326,482
Total	$	4,221,066	$	1,314	$	359,494	$	3,862,886
As of December 31, 2021
U.S. Treasuries	$	218,027	$	1,661	$	2,168	$	217,520
U.S. Government agencies & GSEs	189,855		605		3,428		187,032
State and political subdivisions	263,269		15,237		2,662		275,844
Residential MBS, Agency & GSEs	2,079,700		9,785		28,521		2,060,964
Residential MBS, Non-agency	81,925		2,249		4		84,170
Commercial MBS, Agency & GSEs	870,563		2,974		16,156		857,381
Commercial MBS, Non-agency	15,202		1,268		—		16,470
Corporate bonds	194,164		814		1,812		193,166
Asset-backed securities	603,824		2,000		1,547		604,277
Total	$	4,516,529	$	36,593	$	56,298	$	4,496,824

Securities with a carrying value of $1.96 billion and $1.46 billion were pledged, primarily to secure public deposits, at September 30, 2022 and December 31, 2021, respectively.

 The following table summarizes HTM debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	17,253	$	2,573	$	—	$	—	$	17,253	$	2,573
U.S. Government agencies & GSEs	37,829		8,757		43,516		9,518		81,345		18,275
State and political subdivisions	127,575		32,375		96,164		37,805		223,739		70,180
Residential MBS, Agency & GSEs	650,062		105,555		640,314		121,752		1,290,376		227,307
Commercial MBS, Agency & GSEs	297,445		43,092		309,539		71,268		606,984		114,360
Supranational entities	12,391		2,609		—		—		12,391		2,609
Total unrealized loss position	$	1,142,555	$	194,961	$	1,089,533	$	240,343	$	2,232,088	$	435,304
As of December 31, 2021
U.S. Government agencies & GSEs	$	64,658	$	888	$	4,401	$	233	$	69,059	$	1,121
State and political subdivisions	131,128		3,590		9,006		490		140,134		4,080
Residential MBS, Agency & GSEs	289,132		3,687		—		—		289,132		3,687
Commercial MBS, Agency & GSEs	314,049		8,540		10,384		375		324,433		8,915
Total unrealized loss position	$	798,967	$	16,705	$	23,791	$	1,098	$	822,758	$	17,803

The following table summarizes AFS debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	92,422	$	2,882	$	86,051	$	12,946	$	178,473	$	15,828
U.S. Government agencies & GSEs	117,567		4,819		60,251		12,302		177,818		17,121
State and political subdivisions	257,976		17,220		55,291		15,377		313,267		32,597
Residential MBS, Agency & GSEs	1,213,430		119,863		282,679		41,419		1,496,109		161,282
Residential MBS, Non-agency	359,242		22,943		—		—		359,242		22,943
Commercial MBS, Agency & GSEs	367,162		19,548		278,170		55,203		645,332		74,751
Commercial MBS, Non-agency	30,532		1,144		—		—		30,532		1,144
Corporate bonds	170,581		18,944		52,727		7,691		223,308		26,635
Asset-backed securities	187,039		2,640		108,353		4,553		295,392		7,193
Total unrealized loss position	$	2,795,951	$	210,003	$	923,522	$	149,491	$	3,719,473	$	359,494
As of December 31, 2021
U.S. Treasuries	$	111,606	$	2,168	$	—	$	—	$	111,606	$	2,168
U.S. Government agencies & GSEs	132,893		2,591		20,093		837		152,986		3,428
State and political subdivisions	69,302		2,581		3,148		81		72,450		2,662
Residential MBS, Agency & GSEs	1,534,744		25,799		74,481		2,722		1,609,225		28,521
Residential MBS, Non-agency	12,608		4		—		—		12,608		4
Commercial MBS, Agency & GSEs	582,235		13,098		66,014		3,058		648,249		16,156
Corporate bonds	149,246		1,811		16		1		149,262		1,812
Asset-backed securities	195,164		1,546		571		1		195,735		1,547
Total unrealized loss position	$	2,787,798	$	49,598	$	164,323	$	6,700	$	2,952,121	$	56,298

At September 30, 2022, there were 755 AFS debt securities and 326 HTM debt securities that were in an unrealized loss position. United does not intend to sell nor does it believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at September 30, 2022 were primarily attributable to changes in interest rates.

At September 30, 2022 and December 31, 2021, estimated credit losses and, thus, the related ACL on HTM debt securities were 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 was recorded on the HTM portfolio at September 30, 2022 or December 31, 2021. In addition, based on the assessments performed at September 30, 2022 and December 31, 2021, there was no ACL required related to the AFS portfolio.

The following table presents accrued interest receivable for the periods indicated on HTM and AFS debt securities (in thousands), which was excluded from the estimate of credit losses.

	Accrued Interest Receivable
	September 30, 2022		December 31, 2021
HTM	$	6,135	$	3,596
AFS	13,232		9,868

The amortized cost and fair value of AFS and HTM debt securities at September 30, 2022, by contractual maturity, are presented in the following table (in thousands). Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. 

	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year:
U.S. Treasuries	$	80,116	$	79,266	$	—	$	—
U.S. Government agencies & GSEs	174		172		—		—
State and political subdivisions	15,002		14,990		5,200		5,201
Corporate bonds	2,732		2,680		—		—
	98,024		97,108		5,200		5,201
1 to 5 years:
U.S. Treasuries	99,248		86,295		—		—
U.S. Government agencies & GSEs	38,672		34,652		—		—
State and political subdivisions	46,320		44,682		14,207		14,067
Corporate bonds	164,771		149,932		—		—
	349,011		315,561		14,207		14,067
5 to 10 years:
U.S. Treasuries	14,937		12,912		19,826		17,253
U.S. Government agencies & GSEs	77,779		69,039		53,505		45,109
State and political subdivisions	123,790		110,478		31,603		26,712
Corporate bonds	84,190		72,457		—		—
Supranational entities	—		—		15,000		12,391
	300,696		264,886		119,934		101,465
More than 10 years:
U.S. Government agencies & GSEs	155,867		152,163		46,115		36,236
State and political subdivisions	162,987		145,352		250,510		185,405
Corporate bonds	793		841		—		—
	319,647		298,356		296,625		221,641
Debt securities not due at a single maturity date:
Asset-backed securities	333,665		326,482		—		—
Residential MBS	2,041,109		1,856,890		1,519,094		1,291,801
Commercial MBS	778,914		703,603		721,345		606,985
Total	$	4,221,066	$	3,862,886	$	2,676,405	$	2,241,160

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes AFS securities sales activity for the three and nine months ended September 30, 2022 and 2021 (in thousands).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Proceeds from sales	$	—	$	24,901	$	281,521	$	103,012
Gross realized gains	$	—	$	—	$	1,009	$	641
Gross realized losses	—		—		(4,697)		(600)
Securities gains (losses), net	$	—	$	—	$	(3,688)	$	41
Income tax expense (benefit) attributable to sales	$	—	$	—	$	(979)	$	14

XML

Loans and Leases and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Loans and Leases and Allowance for Credit Losses

Loans and Leases and Allowance for Credit Losses

Major classifications of the loan and lease portfolio (collectively referred to as the “loan portfolio” or “loans”) are summarized as of the dates indicated as follows (in thousands).

	September 30, 2022		December 31, 2021
Owner occupied commercial real estate	$	2,700,345	$	2,321,685
Income producing commercial real estate	3,298,847		2,600,858
Commercial & industrial (1)	2,237,591		1,910,162
Commercial construction	1,514,145		1,014,830
Equipment financing	1,280,856		1,083,021
Total commercial	11,031,784		8,930,556
Residential mortgage	2,149,490		1,637,885
HELOC	832,140		694,034
Residential construction	422,737		359,815
Manufactured housing	300,874		—
Consumer	145,459		138,056
Total loans	14,882,484		11,760,346
Less allowance for credit losses - loans	(148,502)		(102,532)
Loans, net	$	14,733,982	$	11,657,814

(1) Commercial and industrial loans as of September 30, 2022 and December 31, 2021 included $2.44 million and $88.3 million of PPP loans, respectively.

Accrued interest receivable related to loans totaled $43.1 million and $28.5 million at September 30, 2022 and December 31, 2021, respectively, and was reported in other assets on the consolidated balance sheets. Accrued interest receivable was excluded from the estimate of credit losses.

At September 30, 2022 and December 31, 2021, the loan portfolio was subject to blanket pledges on certain qualifying loan types with the FHLB and FRB to secure contingent funding sources.

The following table presents the amortized cost of loans held for investment that were sold in the periods indicated (in thousands). The gains on these loan sales were included in noninterest income on the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Guaranteed portion of SBA/USDA loans	$	20,405	$	13,484	$	87,867	$	57,132
Equipment financing receivables	21,557		19,273		65,534		39,240
Total	$	41,962	$	32,757	$	153,401	$	96,372

At September 30, 2022 and December 31, 2021, equipment financing receivables included leases of $44.0 million and $37.7 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	September 30, 2022		December 31, 2021
Minimum future lease payments receivable	$	47,177	$	39,962
Estimated residual value of leased equipment	3,046		3,216
Initial direct costs	744		669
Security deposits	(472)		(687)
Unearned income	(6,482)		(5,432)
Net investment in leases	$	44,013	$	37,728

Minimum future lease payments expected to be received from equipment financing lease contracts as of September 30, 2022 were as follows (in thousands): 

Year
Remainder of 2022	$	4,521
2023	16,041
2024	11,714
2025	8,237
2026	4,891
Thereafter	1,773
Total	$	47,177

Nonaccrual and Past Due Loans HFI

The following table presents the aging of the amortized cost basis in loans by aging category and accrual status as of the dates indicated (in thousands). Past due status is based on contractual terms of the loan. The accrual of interest is generally discontinued when a loan becomes 90 days past due.

	Accruing
	Current Loans		Loans Past Due
			30 - 59 Days		60 - 89 Days		> 90 Days		Nonaccrual Loans		Total Loans
As of September 30, 2022
Owner occupied commercial real estate	$	2,696,495	$	2,597	$	376	$	—	$	877	$	2,700,345
Income producing commercial real estate	3,292,966		3,170		48		—		2,663		3,298,847
Commercial & industrial	2,224,863		1,383		213		24		11,108		2,237,591
Commercial construction	1,513,544		451		—		—		150		1,514,145
Equipment financing	1,274,342		1,918		1,398		—		3,198		1,280,856
Total commercial	11,002,210		9,519		2,035		24		17,996		11,031,784
Residential mortgage	2,136,977		1,703		386		—		10,424		2,149,490
HELOC	829,400		1,393		196		—		1,151		832,140
Residential construction	422,274		92		267		—		104		422,737
Manufactured housing	292,394		3,589		704		—		4,187		300,874
Consumer	145,166		223		49		4		17		145,459
Total loans	$	14,828,421	$	16,519	$	3,637	$	28	$	33,879	$	14,882,484
As of December 31, 2021
Owner occupied commercial real estate	$	2,318,944	$	27	$	—	$	—	$	2,714	$	2,321,685
Income producing commercial real estate	2,593,124		146		—		—		7,588		2,600,858
Commercial & industrial	1,903,730		584		419		—		5,429		1,910,162
Commercial construction	1,014,211		—		276		—		343		1,014,830
Equipment financing	1,079,180		1,415		685		—		1,741		1,083,021
Total commercial	8,909,189		2,172		1,380		—		17,815		8,930,556
Residential mortgage	1,622,754		1,583		235		—		13,313		1,637,885
HELOC	691,814		920		88		—		1,212		694,034
Residential construction	358,741		654		—		—		420		359,815
Consumer	137,564		421		19		—		52		138,056
Total loans	$	11,720,062	$	5,750	$	1,722	$	—	$	32,812	$	11,760,346

The following table presents nonaccrual loans held for investment by loan class for the periods indicated (in thousands). 

	Nonaccrual Loans
	September 30, 2022						December 31, 2021
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	537	$	340	$	877	$	2,141	$	573	$	2,714
Income producing commercial real estate	2,263		400		2,663		6,873		715		7,588
Commercial & industrial	10,061		1,047		11,108		3,715		1,714		5,429
Commercial construction	47		103		150		—		343		343
Equipment financing	449		2,749		3,198		—		1,741		1,741
Total commercial	13,357		4,639		17,996		12,729		5,086		17,815
Residential mortgage	2,239		8,185		10,424		3,126		10,187		13,313
HELOC	300		851		1,151		219		993		1,212
Residential construction	67		37		104		280		140		420
Manufactured housing	—		4,187		4,187		—		—		—
Consumer	1		16		17		6		46		52
Total	$	15,964	$	17,915	$	33,879	$	16,360	$	16,452	$	32,812

Risk Ratings 

United categorizes commercial loans, with the exception of equipment financing receivables, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current industry and economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continual basis. United uses the following definitions for its risk ratings:

Pass. Loans in this category are considered to have a low probability of default and do not meet the criteria of the risk categories below.

Special Mention. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment.

Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged off.

Equipment Financing Receivables and Consumer Purpose Loans. United applies a pass / fail grading system to all equipment financing receivables and consumer purpose loans. Under this system, loans that are on nonaccrual status, become past due 90 days, or are in bankruptcy and 30 or more days past due are classified as “fail” and all other loans are classified as “pass”. For reporting purposes, loans in these categories that are classified as “fail” are reported as substandard and all other loans are reported as pass.

The following tables present the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	537,628	$	690,355	$	630,238	$	217,689	$	132,341	$	297,665	$	107,380	$	5,948	$	2,619,244
Income producing commercial real estate	659,896		810,374		770,008		301,271		178,480		302,937		43,144		9,127		3,075,237
Commercial & industrial	391,665		442,865		199,960		142,415		126,773		80,396		691,597		18,923		2,094,594
Commercial construction	497,066		478,007		284,335		113,523		13,002		21,633		72,161		1,343		1,481,070
Equipment financing	535,508		411,108		187,297		108,817		31,409		2,596		—		—		1,276,735
Total commercial	2,621,763		2,832,709		2,071,838		883,715		482,005		705,227		914,282		35,341		10,546,880
Residential mortgage	640,179		762,959		339,633		94,368		58,005		237,641		8		3,120		2,135,913
HELOC	—		—		—		—		—		—		807,985		22,482		830,467
Residential construction	259,062		144,816		6,233		1,895		1,637		8,474		65		375		422,557
Manufactured housing	58,475		56,252		50,323		35,847		32,026		62,615		—		—		295,538
Consumer	58,222		34,549		18,008		5,420		2,314		856		25,869		129		145,367
	3,637,701		3,831,285		2,486,035		1,021,245		575,987		1,014,813		1,748,209		61,447		14,376,722
Special Mention
Owner occupied commercial real estate	6,540		7,663		5,262		9,585		4,217		5,164		3,065		2,964		44,460
Income producing commercial real estate	46,138		10,285		45,578		20,106		21,798		13,318		1		—		157,224
Commercial & industrial	16,279		32,282		5,751		847		1,337		250		34,169		297		91,212
Commercial construction	530		35		62		13,319		4,917		29		—		—		18,892
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Substandard
Owner occupied commercial real estate	6,801		529		4,016		8,654		1,210		14,184		210		1,037		36,641
Income producing commercial real estate	34,352		1,779		1,368		4,621		13,292		10,519		391		64		66,386
Commercial & industrial	5,194		9,958		2,247		5,696		10,935		1,273		16,035		447		51,785
Commercial construction	148		42		47		3		3,925		9,772		—		246		14,183
Equipment financing	646		1,044		1,141		696		576		18		—		—		4,121
Total commercial	47,141		13,352		8,819		19,670		29,938		35,766		16,636		1,794		173,116
Residential mortgage	1,401		1,167		1,361		1,861		2,483		5,145		—		159		13,577
HELOC	—		—		—		—		—		—		24		1,649		1,673
Residential construction	2		—		—		21		4		153		—		—		180
Manufactured housing	424		672		739		690		953		1,858		—		—		5,336
Consumer	—		35		15		2		32		8		—		—		92
	48,968		15,226		10,934		22,244		33,410		42,930		16,660		3,602		193,974
Total	$	3,756,156	$	3,896,776	$	2,553,622	$	1,087,346	$	641,666	$	1,076,504	$	1,802,104	$	68,310	$	14,882,484

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of December 31, 2021	2021		2020		2019		2018		2017		Prior
Pass
Owner occupied commercial real estate	$	643,151	$	674,124	$	278,702	$	153,233	$	139,584	$	267,460	$	68,354	$	17,150	$	2,241,758
Income producing commercial real estate	668,322		678,487		333,911		221,218		165,563		219,459		41,157		11,830		2,339,947
Commercial & industrial	638,567		270,150		178,944		136,281		50,567		72,904		514,750		4,361		1,866,524
Commercial construction	378,695		303,154		149,740		40,625		22,983		13,206		12,628		1,673		922,704
Equipment financing	563,618		271,913		167,904		63,254		13,145		903		—		—		1,080,737
Total commercial	2,892,353		2,197,828		1,109,201		614,611		391,842		573,932		636,889		35,014		8,451,670
Residential mortgage	781,007		370,092		108,091		64,346		71,552		221,131		9		3,915		1,620,143
HELOC	—		—		—		—		—		—		676,545		14,994		691,539
Residential construction	325,111		16,301		2,802		2,278		3,144		9,352		—		33		359,021
Consumer	57,530		29,218		10,757		5,137		1,439		1,355		32,312		111		137,859
	4,056,001		2,613,439		1,230,851		686,372		467,977		805,770		1,345,755		54,067		11,260,232
Special Mention
Owner occupied commercial real estate	7,772		2,979		16,639		4,374		6,007		2,641		248		286		40,946
Income producing commercial real estate	64,139		27,875		21,875		22,292		18,415		21,880		—		—		176,476
Commercial & industrial	1,037		1,831		2,740		597		273		303		2,242		—		9,023
Commercial construction	14,283		16,237		13,149		22,479		11,766		52		—		—		77,966
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Substandard
Owner occupied commercial real estate	11,987		1,049		4,216		3,712		5,829		11,088		—		1,100		38,981
Income producing commercial real estate	15,485		12,618		3,779		29,212		6,726		16,531		—		84		84,435
Commercial & industrial	2,741		1,615		5,284		12,685		1,232		5,863		4,326		869		34,615
Commercial construction	3,464		157		272		11		9,750		255		—		251		14,160
Equipment financing	428		590		676		503		84		3		—		—		2,284
Total commercial	34,105		16,029		14,227		46,123		23,621		33,740		4,326		2,304		174,475
Residential mortgage	3,339		1,585		2,813		3,229		1,205		4,744		—		827		17,742
HELOC	—		—		—		—		—		—		329		2,166		2,495
Residential construction	407		—		30		51		—		306		—		—		794
Consumer	37		16		22		26		22		50		3		21		197
	37,888		17,630		17,092		49,429		24,848		38,840		4,658		5,318		195,703
Total	$	4,181,120	$	2,679,991	$	1,302,346	$	785,543	$	529,286	$	869,486	$	1,352,903	$	59,671	$	11,760,346

Troubled Debt Restructurings

As of September 30, 2022 and December 31, 2021, United had TDRs totaling $42.9 million and $52.4 million, respectively. Loans modified under the terms of a TDR during the three and nine months ended September 30, 2022 and 2021 are presented in the following table. In addition, the table presents loans modified under the terms of a TDR that defaulted (became 90 days or more delinquent or otherwise in default of modified terms) during the periods presented and were initially restructured within one year prior to default (dollars in thousands).

	New TDRs									TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted
		Post-Modification Amortized Cost by Type of Modification
	Number of  Contracts	Rate   Reduction		Structure		Other		Total		Number of   Contracts	Amortized Cost
Three Months Ended September 30, 2022
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	1	—		715		—		715		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		2,103		—		2,103		1	30
Total commercial	12	—		2,818		—		2,818		1	30
Residential mortgage	4	—		304		—		304		2	400
HELOC	—	—		—		—		—		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	16	$	—	$	3,122	$	—	$	3,122	3	$	430
Nine Months Ended September 30, 2022
Owner occupied commercial real estate	1	$	—	$	112	$	—	$	112	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	2	—		1,118		—		1,118		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	38	—		6,952		—		6,952		10	438
Total commercial	41	—		8,182		—		8,182		10	438
Residential mortgage	8	—		877		—		877		3	456
HELOC	7	—		1,242		6		1,248		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	56	$	—	$	10,301	$	6	$	10,307	13	$	894
Three Months Ended September 30, 2021
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	3	—		166		—		166		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		399		—		399		3	96
Total commercial	14	—		565		—		565		3	96
Residential mortgage	6	—		649		—		649		1	180
HELOC	—	—		—		—		—		1	43
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	20	$	—	$	1,214	$	—	$	1,214	5	$	319
Nine Months Ended September 30, 2021
Owner occupied commercial real estate	1	$	—	$	543	$	—	$	543	—	$	—
Income producing commercial real estate	3	—		—		1,697		1,697		—	—
Commercial & industrial	7	—		531		103		634		1	11
Commercial construction	1	—		309		—		309		—	—
Equipment financing	47	—		2,861		—		2,861		11	296
Total commercial	59	—		4,244		1,800		6,044		12	307
Residential mortgage	12	—		1,040		—		1,040		4	593
HELOC	—	—		—		—		—		2	92
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	71	$	—	$	5,284	$	1,800	$	7,084	18	$	992

Allowance for Credit Losses

The ACL for loans represents management’s estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfunded commitments is included in other liabilities in the consolidated balance sheet.

At both September 30, 2022 and December 31, 2021, United used a one-year reasonable and supportable forecast period. Expected credit losses were estimated using a regression model for each segment based on historical data from peer banks combined with a third party vendor’s baseline economic forecast to predict the change in credit losses. These estimates were then combined with a starting value that was based on United’s recent default experience, with the results subject to a floor. At September 30, 2022, United applied qualitative adjustments to the model output for the income producing commercial real estate, commercial construction, HELOCs, residential mortgage and residential construction portfolios. With regard to income producing commercial real estate, the qualitative adjustments reflected continued credit concerns related to the senior care portfolio, elevated criticized loans relative to the pre-pandemic period and inflationary concerns related to the impact of rising rates on commercial real estate values. Qualitative adjustments for the other categories lowered the amount of required allowance due to management’s expectation with respect to the timing of deteriorating economic conditions in the forecast.

For periods beyond the reasonable and supportable forecast period of one year, United reverted to historical credit loss information on a straight line basis over two years. For all collateral types excluding residential mortgage and manufactured housing, United reverted to through-the-cycle average default rates using peer data from 2000 to 2017. For loans secured by residential mortgages and manufactured housing, the peer data was adjusted to account for the changes in lending practices designed to prevent the magnitude of losses observed during the mortgage crisis.

PPP loans were considered low risk assets due to the related 100% guarantee by the SBA and were therefore excluded from the calculation.

The following table presents the balance and activity in the ACL by portfolio segment for the periods indicated (in thousands).

	Three Months Ended September 30,
	2022										2021
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	16,774	$	—	$	90	$	2,192	$	19,056	$	17,292	$	(443)	$	536	$	(3,241)	$	14,144
Income producing commercial real estate	33,284		(202)		26		(1,498)		31,610		30,967		(120)		75		(7,531)		23,391
Commercial & industrial	18,267		(373)		1,117		1,907		20,918		16,414		(320)		411		(262)		16,243
Commercial construction	16,062		—		(10)		1,902		17,954		9,180		—		123		(1,131)		8,172
Equipment financing	18,409		(1,987)		866		3,277		20,565		18,100		(1,165)		653		(288)		17,300
Residential mortgage	17,035		—		66		2,234		19,335		10,965		(127)		76		559		11,473
HELOC	7,487		(27)		129		884		8,473		6,357		(65)		167		(40)		6,419
Residential construction	2,086		—		109		109		2,304		1,918		—		37		(19)		1,936
Manufactured housing	6,614		(225)		5		958		7,352		—		—		—		—		—
Consumer	907		(1,010)		292		746		935		423		(611)		222		508		542
ACL - loans	136,925		(3,824)		2,690		12,711		148,502		111,616		(2,851)		2,300		(11,445)		99,620
ACL - unfunded commitments	16,117		—		—		2,681		18,798		10,844		—		—		411		11,255
Total ACL	$	153,042	$	(3,824)	$	2,690	$	15,392	$	167,300	$	122,460	$	(2,851)	$	2,300	$	(11,034)	$	110,875

	Nine Months Ended September 30,
	2022												2021
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	14,282	$	266	$	—	$	1,631	$	2,877	$	19,056	$	20,673	$	(1,503)	$	932	$	(5,958)	$	14,144
Income producing commercial real estate	24,156		4,366		(202)		432		2,858		31,610		41,737		(174)		304		(18,476)		23,391
Commercial & industrial	16,592		2,337		(4,978)		3,095		3,872		20,918		22,019		(4,017)		6,855		(8,614)		16,243
Commercial construction	9,956		2,857		(41)		548		4,634		17,954		10,952		(224)		618		(3,174)		8,172
Equipment financing	16,290		—		(4,644)		2,349		6,570		20,565		16,820		(4,411)		2,087		2,804		17,300
Residential mortgage	12,390		385		(53)		267		6,346		19,335		15,341		(342)		393		(3,919)		11,473
HELOC	6,568		60		(36)		565		1,316		8,473		8,417		(99)		386		(2,285)		6,419
Residential construction	1,847		1		—		208		248		2,304		764		(10)		140		1,042		1,936
Manufactured housing	—		2,438		(533)		14		5,433		7,352		—		—		—		—		—
Consumer	451		27		(2,544)		879		2,122		935		287		(1,435)		710		980		542
ACL - loans	102,532		12,737		(13,031)		9,988		36,276		148,502		137,010		(12,215)		12,425		(37,600)		99,620
ACL - unfunded commitments	10,992		—		—		—		7,806		18,798		10,558		—		—		697		11,255
Total ACL	$	113,524	$	12,737	$	(13,031)	$	9,988	$	44,082	$	167,300	$	147,568	$	(12,215)	$	12,425	$	(36,903)	$	110,875

(1) Represents the initial ACL related to PCD loans acquired in the Reliant transaction.

XML

Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

The table below presents the fair value of derivative financial instruments, which are included in other assets and other liabilities on the consolidated balance sheet, as of the dates indicated (in thousands):

	September 30, 2022						December 31, 2021
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Derivative Asset		Derivative Liability				Derivative Asset		Derivative Liability
Derivatives designated as hedging instruments:
Cash flow hedge of subordinated debt	$	100,000	$	16,311	$	—	$	100,000	$	6,389	$	—
Cash flow hedge of trust preferred securities	20,000		—		—		20,000		—		—
Fair value hedge of brokered time deposits	—		—		—		10,000		—		—
Total	120,000		16,311		—		130,000		6,389		—
Derivatives not designated as hedging instruments:
Customer derivative positions	1,090,067		16		92,444		1,206,145		28,656		10,663
Dealer offsets to customer derivative positions	1,090,067		24,005		—		1,230,885		974		9,232
Risk participations	79,827		4		1		69,385		16		7
Mortgage banking - loan commitment	33,265		290		155		110,897		3,450		—
Mortgage banking - forward sales commitment	88,000		1,994		30		201,419		67		202
Bifurcated embedded derivatives	51,935		11,724		—		51,935		2,928		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		13,505		51,935		—		5,041
Total	2,485,096		38,033		106,135		2,922,601		36,091		25,145
Total derivatives	$	2,605,096	$	54,344	$	106,135	$	3,052,601	$	42,480	$	25,145
Total gross derivative instruments			$	54,344	$	106,135			$	42,480	$	25,145
Less: Amounts subject to master netting agreements			(230)		(230)				(694)		(694)
Less: Cash collateral received/pledged			(39,811)		(13,155)				(6,620)		(14,148)
Net amount			$	14,303	$	92,750			$	35,166	$	10,303

United clears certain derivatives centrally through the CME. CME rules legally characterize variation margin payments for centrally cleared derivatives as settlements of the derivatives’ exposure rather than as collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contracts that clear through the CME have an estimated fair value of zero.

Hedging Derivatives

Cash Flow Hedges of Interest Rate Risk 

United enters into cash flow hedges to mitigate exposure to the variability of future cash flows or other forecasted transactions. As of September 30, 2022 and December 31, 2021, United utilized interest rate caps and swaps to hedge the variability of cash flows due to changes in interest rates on certain of its variable-rate subordinated debt and trust preferred securities. United considers these derivatives to be highly effective at achieving offsetting changes in cash flows attributable to changes in interest rates. Therefore, changes in the fair value of these derivative instruments are recognized in OCI. Gains and losses related to changes in fair value are reclassified into earnings in the periods the hedged forecasted transactions occur. Losses representing amortization of the premium recorded on cash flow hedges, which is a component excluded from the assessment of effectiveness, are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Over the next twelve months, United expects to reclassify $2.34 million of gains from AOCI into earnings related to these agreements.

Fair Value Hedges of Interest Rate Risk 

United is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in interest rates. United uses interest rate derivatives to manage its exposure to changes in fair value on these instruments attributable to changes in interest rates. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. United includes the gain or loss on the hedged items in the same income statement line item as the offsetting loss or gain on the related derivatives.

At December 31, 2021, United had an interest rate swap that was designated as a fair value hedge of fixed-rate brokered time deposits. During the first quarter of 2022, the hedged brokered deposit and the associated swap matured. The swap involved the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of the agreements.

The table below presents the effect of derivatives in hedging relationships, all of which are interest rate contracts, on the consolidated statement of income for the periods indicated (in thousands). 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total interest expense presented in the consolidated statements of income	$	(14,113)	$	(6,636)	$	(29,855)	$	(23,547)
Effect of hedging relationships on interest expense:
Net income recognized on fair value hedges	—		43		28		167
Net expense recognized on cash flow hedges (1)	(48)		(153)		(295)		(444)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $119,000 for both the three months ended September 30, 2022 and 2021, and $353,000 for both the nine months ended September 30, 2022 and 2021.

Derivatives Not Designated as Hedging Instruments 

Customer derivative positions include swaps, caps, and collars between United and certain commercial loan customers with offsetting positions to dealers under a back-to-back program. In addition, United occasionally enters into credit risk participation agreements with counterparty banks to accept or transfer a portion of the credit risk related to interest rate swaps. The agreements, which are typically executed in conjunction with a participation in a loan with the same customer, allow customers to execute an interest rate swap with one bank while allowing for the distribution of the credit risk among participating members.

United also has three interest rate swap contracts that are not designated as hedging instruments but are economic hedges of market-linked brokered certificates of deposit. The market-linked brokered certificates of deposit contain embedded derivatives that are bifurcated from the host instruments and are marked to market through earnings. The fair value marks on the market-linked swaps and the bifurcated embedded derivatives tend to move in opposite directions with changes in 90-day LIBOR and therefore provide an economic hedge.

In addition, United originates certain residential mortgage loans with the intention of selling these loans. Between the time United enters into an interest-rate lock commitment to originate a residential mortgage loan that is to be held for sale and the time the loan is funded and eventually sold, United is subject to the risk of variability in market prices. United enters into forward sale agreements to mitigate risk and to protect the expected gain on the eventual loan sale. The commitments to originate residential mortgage loans and forward loan sales commitments are freestanding derivative instruments. Fair value adjustments on these derivative instruments are recorded within mortgage loan gains and other related fee income in the consolidated statements of income. 

The table below presents the gains and losses recognized in income on derivatives not designated as hedging instruments for the periods indicated (in thousands). 

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Customer derivatives and dealer offsets	Other noninterest income	$	471	$	599	$	1,685	$	2,551
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(108)		—		90		417
Mortgage banking derivatives	Mortgage loan revenue	1,047		(1,407)		8,297		(1,065)
Risk participations	Other noninterest income	(1)		—		93		—
		$	1,409	$	(808)	$	10,165	$	1,903

Credit-Risk-Related Contingent Features 

United manages its credit exposure on derivatives transactions by entering into a bilateral credit support agreement with each non-customer counterparty. The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements, including the minimum thresholds, vary by counterparty.

United’s agreements with each of its derivative counterparties provide that if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivative counterparties also include provisions that if not met, could result in United being declared in default. United has agreements with certain of its derivative counterparties that provide that if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would be required to settle its obligations under the agreements. Derivatives that are centrally cleared do not have credit-risk-related features that would require additional collateral if United’s credit rating were downgraded.

XML

Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands).  

	September 30, 2022		December 31, 2021
Core deposit intangible	$	46,900	$	38,192
Less: accumulated amortization	(24,690)		(25,870)
Net core deposit intangible	22,210		12,322
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(916)		(322)
Net customer relationship intangible	7,484		8,078
Total intangibles subject to amortization, net (1)	29,694		20,400
Goodwill	751,174		452,007
Total goodwill and other intangible assets, net	$	780,868	$	472,407

(1) As intangible assets become fully amortized, they are excluded from balances presented.

During the first quarter of 2022, as a result of the Reliant acquisition, United recorded a core deposit intangible of $14.5 million. See Note 4 for further detail.

The following is a summary of changes in the carrying amounts of goodwill (in thousands): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	751,174	$	367,809	$	452,007	$	367,809
Acquisitions	—		14,163		299,167		14,163
Balance, end of period (1)	$	751,174	$	381,972	$	751,174	$	381,972

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2021.

The estimated aggregate amortization expense for future periods for finite lived intangibles is as follows (in thousands):

Remainder of 2022	$	1,620
2023	5,903
2024	5,018
2025	4,051
2026	3,303
Thereafter	9,799
Total	$	29,694

XML

Long-term Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021		Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate
2027 senior debentures	35,000		35,000		2015	2027	2025	5.500% through August 2025, 3-month LIBOR plus 3.71% thereafter
2030 senior debentures	100,000		100,000		2020	2030	2025	5.00% through June 2025, 3-month SOFR plus 4.87% thereafter
Total senior debentures	135,000		135,000
2028 subordinated debentures	100,000		100,000		2018	2028	2023	4.500% through January 2023, 3-month LIBOR plus 2.12% thereafter
2029 subordinated debentures	60,000		—		2019	2029	2024	5.125% until December 2024, 3-month SOFR plus 3.765% thereafter
Total subordinated debentures	160,000		100,000
Tidelands Statutory Trust I	8,248		8,248		2006	2036	*	3-month LIBOR plus 1.38%
Four Oaks Statutory Trust I	12,372		12,372		2006	2036	*	3-month LIBOR plus 1.35%
Community First Capital Trust I	3,093		—		2002	2032	*	Prime plus 0.50%
Community First Capital Trust II	5,155		—		2005	2035	*	3-month LIBOR plus 1.50%
Community First Capital Trust III	5,464		—		2007	2037	*	3-month LIBOR plus 3.00%
Total trust preferred securities	34,332		20,620
Less net discount	(4,817)		(8,260)
Total long-term debt	$	324,515	$	247,360

 * Indicates currently redeemable.

Interest is currently paid at least semiannually for all senior and subordinated debentures and trust preferred securities. All debt instruments reported above are obligations of the Holding Company.

During the first quarter of 2022, United assumed subordinated debentures and trust preferred securities with an acquisition date fair value of $76.7 million as part of the Reliant acquisition. See Note 4 for further detail.

XML

Assets and Liabilities Measured at Fair Value

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, United uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). United has processes in place to review the significant valuation inputs and to reassess how the instruments are classified in the valuation framework.

Fair Value Hierarchy

Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access.

Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances when the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is

significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.

Investment Securities

AFS debt securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include MBS issued by GSEs, municipal bonds, corporate debt securities, asset-backed securities and supranational entity securities and are valued based on observable inputs that include: quoted market prices for similar assets, quoted market prices that are not in an active market, or other inputs that are observable in the market and can be corroborated by observable market data for substantially the full term of the securities. Securities classified as Level 3 include those traded in less liquid markets and are valued based on estimates obtained from broker-dealers that are not directly observable or models which incorporate unobservable inputs.

Deferred Compensation Plan Assets and Liabilities

Included in other assets in the consolidated balance sheet are assets related to employee deferred compensation plans. The assets associated with these plans are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of the obligation to the employee, which mirrors the fair value of the invested assets and is included in other liabilities in the consolidated balance sheet.

Mortgage Loans Held for Sale

United has elected the fair value option for most of its newly originated mortgage loans held for sale in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the value of derivative instruments used to economically hedge them. The fair value of mortgage loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan, and are classified as Level 2. In connection with the Reliant acquisition, United acquired certain mortgage loans held for sale for which the fair value option was not elected; these loans are carried at the lower of aggregate cost or fair value.

Derivative Financial Instruments

United uses derivatives to manage interest rate risk. The valuation of these instruments is typically determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. United also uses best effort and mandatory delivery forward loan sale commitments to hedge risk in its mortgage lending business.

United incorporates CVAs as necessary to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, United has considered the effect of netting and any applicable credit enhancements, such as collateral postings, thresholds and guarantees.

Management has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. However, the CVAs associated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. Generally, management’s assessment of the significance of the CVAs has indicated that they are not a significant input to the overall valuation of the derivatives. In cases where management’s assessment indicates that the CVA is a significant input, the related derivative is disclosed as a Level 3 value.

Other derivatives classified as Level 3 include structured derivatives for which broker quotes, used as a key valuation input, were not observable. Risk participation agreements are classified as Level 3 instruments due to the incorporation of significant Level 3 inputs used to evaluate the probability of funding and the likelihood of customer default. Interest rate lock commitments, which relate to mortgage loan commitments, are categorized as Level 3 instruments as the fair value of these instruments is based on unobservable inputs for commitments that United does not expect to fund.

Servicing Rights for Residential and SBA/USDA Loans

United recognizes servicing rights upon the sale of residential and SBA/USDA loans sold with servicing retained. Management has elected to carry these assets at fair value. Given the nature of these assets, the key valuation inputs are unobservable and management classifies these assets as Level 3.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

September 30, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	178,473	$	—	$	—	$	178,473
U.S. Government agencies & GSEs	—		256,026		—		256,026
State and political subdivisions	—		315,502		—		315,502
Residential MBS	—		1,856,890		—		1,856,890
Commercial MBS	—		703,603		—		703,603
Corporate bonds	—		223,684		2,226		225,910
Asset-backed securities	—		326,482		—		326,482
Equity securities with readily available fair values	12,934		1,068		—		14,002
Mortgage loans held for sale	—		19,888		—		19,888
Deferred compensation plan assets	10,904		—		—		10,904
Servicing rights for SBA/USDA loans	—		—		6,078		6,078
Residential mortgage servicing rights	—		—		37,154		37,154
Derivative financial instruments	—		42,326		12,018		54,344
Total assets	$	202,311	$	3,745,469	$	57,476	$	4,005,256
Liabilities:
Deferred compensation plan liability	$	10,929	$	—	$	—	$	10,929
Derivative financial instruments	—		92,474		13,661		106,135
Total liabilities	$	10,929	$	92,474	$	13,661	$	117,064

December 31, 2021	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	217,520	$	—	$	—	$	217,520
U.S. Government agencies & GSEs	—		187,032		—		187,032
State and political subdivisions	—		275,844		—		275,844
Residential MBS	—		2,145,134		—		2,145,134
Commercial MBS	—		873,851		—		873,851
Corporate bonds	—		190,771		2,395		193,166
Asset-backed securities	—		604,277		—		604,277
Equity securities with readily available fair values	—		1,302		—		1,302
Mortgage loans held for sale	—		44,109		—		44,109
Deferred compensation plan assets	11,769		—		—		11,769
Servicing rights for SBA/USDA loans	—		—		6,513		6,513
Residential mortgage servicing rights	—		—		25,161		25,161
Derivative financial instruments	—		35,722		6,758		42,480
Total assets	$	229,289	$	4,358,042	$	40,827	$	4,628,158
Liabilities:
Deferred compensation plan liability	$	11,795	$	—	$	—	$	11,795
Derivative financial instruments	—		20,097		5,048		25,145
Total liabilities	$	11,795	$	20,097	$	5,048	$	36,940

The following table shows a reconciliation of the beginning and ending balances for the periods indicated for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2022										2021
	Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds		Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds
Three Months Ended September 30,
Beginning balance	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287	$	6,889	$	3,944	$	6,115	$	21,568	$	1,707
Additions	—		—		411		704		—		86		—		354		2,813		500
Sales and settlements	—		—		(220)		(602)		—		—		—		(357)		(875)		—
Fair value adjustments included in OCI	—		—		—		—		(61)		—		—		—		—		165
Fair value adjustments included in earnings	1,819		2,866		(280)		1,921		—		42		505		49		(444)		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372
Nine Months Ended September 30,
Beginning balance	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395	$	10,779	$	2,408	$	6,462	$	16,216	$	1,750
Additions	—		99		1,799		4,594		—		261		97		1,193		9,806		500
Transfers from Level 3	(290)		—		—		—		—		—		—		—		—		—
Sales and settlements	—		(1)		(857)		(1,916)		—		—		—		(1,001)		(3,430)		—
Fair value adjustments included in OCI	—		—		—		—		(169)		—		—		—		—		122
Fair value adjustments included in earnings	5,550		8,515		(1,377)		9,315		—		(4,023)		1,944		(493)		470		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372

The following table presents quantitative information about significant Level 3 inputs for fair value on a recurring basis as of the dates indicated. 

Level 3 Assets and Liabilities	Valuation Technique	Significant Unobservable Inputs	September 30, 2022			December 31, 2021
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	5.8% - 25.0%	13.5	%	0.0% - 45.4%	10.3	%
		Prepayment rate	0.0 - 35.1	16.8		3.2 - 31.3	16.3
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 10.5	9.5
		Prepayment rate	7.0 - 32.3	7.4		7.0 - 77.6	12.6
Corporate bonds	Discounted cash flow	Discount rate	5.9 - 6.1	6.0		3.6 - 3.8	3.6
Derivative assets - customer derivative positions	Internal model	Estimated loss rate	N/A	N/A		33.4 - 44.0	36.0
Derivative assets - mortgage	Internal model	Pull through rate	45.0 - 100	90.7		45.9 - 100	87.2
Derivative assets and liabilities - other	Dealer priced	Dealer priced	N/A	N/A		N/A	N/A

Fair Value Option

United generally records mortgage loans held for sale at fair value under the fair value option. Interest income on these loans is calculated based on the note rate of the loan and is recorded in interest revenue. In connection with the Reliant acquisition, United acquired mortgage loans held for sale accounted for under the lower of cost or fair value method. These loans are separately disclosed under the heading “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” within this footnote. The following tables present the fair value and outstanding principal balance of loans accounted for under the fair value option, as well as the gain or loss recognized from the change in fair value for the periods indicated (in thousands).

Mortgage Loans Held for Sale
	September 30, 2022		December 31, 2021
Outstanding principal balance	$	20,180	$	42,581
Fair value	19,888		44,109

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Mortgage loan gains and other related fees	$	(809)	$	(1,609)	$	(1,820)	$	(3,330)

Changes in fair value were mostly offset by hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

United may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of the lower of the amortized cost or fair value accounting or write-downs of individual assets due to impairment. The following table presents the fair value hierarchy and carrying value of assets that were still held as of September 30, 2022 and December 31, 2021, for which a nonrecurring fair value adjustment was recorded during the year-to-date periods presented (in thousands).

	Level 1		Level 2		Level 3		Total
September 30, 2022
Loans held for investment	$	—	$	—	$	1,820	$	1,820
Mortgage loans held for sale	—		—		2,079		2,079
December 31, 2021
Loans held for investment	$	—	$	—	$	2,536	$	2,536

Mortgage loans held for sale that were acquired from Reliant were subject to a nonrecurring fair value adjustment resulting from the application of the lower of the amortized cost or fair value accounting. As of September 30, 2022, these loans were classified as nonrecurring Level 3 because the valuation of these loans was based on indicative bids provided by a broker, not corroborated by market transactions.

Loans held for investment that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have either been partially charged off or have specific reserves assigned to them. Nonaccrual loans that are collateral dependent are generally written down to net realizable value, which reflects fair value less the estimated costs to sell. Specific reserves that are established based on appraised value of collateral are considered nonrecurring fair value adjustments as well. When the fair value of the collateral is based on an observable market price or a current appraised value, United records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, United records the impaired loan as nonrecurring Level 3.

Assets and Liabilities Not Measured at Fair Value  

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

Cash and cash equivalents and repurchase agreements have short maturities and therefore the carrying value approximates fair value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. All estimates are inherently subjective in nature. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Off-balance sheet instruments (commitments to extend credit and standby letters of credit) for which draws can be reasonably predicted are generally short-term in maturity and are priced at variable rates. Therefore, the estimated fair value associated with these instruments is immaterial.

The carrying amount and fair values as of the dates indicated for other financial instruments that are not measured at fair value on a recurring basis are as follows (in thousands).

			Fair Value Level
	Carrying Amount		Level 1		Level 2		Level 3		Total
September 30, 2022
Assets:
HTM debt securities	$	2,676,405	$	17,253	$	2,223,907	$	—	$	2,241,160
Loans and leases, net	14,733,982		—		—		14,250,071		14,250,071
Liabilities:
Deposits	20,321,142		—		20,315,750		—		20,315,750
Long-term debt	324,515		—		—		313,944		313,944
December 31, 2021
Assets:
HTM debt securities	$	1,156,098	$	—	$	1,148,804	$	—	$	1,148,804
Loans and leases, net	11,657,814		—		—		11,607,821		11,607,821
Liabilities:
Deposits	18,241,179		—		18,239,934		—		18,239,934
Long-term debt	247,360		—		—		267,064		267,064

XML

Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

United has an equity compensation plan that allows for grants of various share-based compensation. The general terms of the plan include a vesting period (usually four years) with an exercisable period not to exceed ten years. Certain options and restricted stock unit awards provide for accelerated vesting if there is a change in control (as defined in the plan document). As of September 30, 2022, 2.80 million additional awards could be granted under the plan.

The table below presents restricted stock unit and option activity for the nine months ended September 30, 2022.

	Restricted Stock Unit Awards					Options
	Shares	Weighted- Average Grant- Date Fair Value		Aggregate Intrinsic Value ($000)		Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($000)
Outstanding at December 31, 2021	808,474	$	25.15			35,460	$	8.38
Granted	335,866	32.81				48,239	20.88
Released / Exercised	(289,860)	25.11		$	10,252	(16,257)	20.77			$	252
Cancelled	(29,925)	26.06				—	—
Outstanding at September 30, 2022	824,555	28.25		27,293		67,442	14.33		3.0	1,266
Vested / Exercisable at September 30, 2022	—	—				67,442	14.33		3.0	1,266

Options granted in 2022 reflect options assumed in the Reliant acquisition, with the weighted average exercise price of Reliant’s fully vested converted options determined pursuant to the purchase agreement. The value of the Reliant options was determined using a Black-Scholes model and was included in the purchase price for the acquisition. No compensation expense relating to options was included in earnings for the nine months ended September 30, 2022 and 2021.

Compensation expense for restricted stock units and performance stock units without market conditions is based on the market value of United’s common stock on the date of grant. Compensation expense for performance stock units with market conditions is based on the grant date per share fair value, which was estimated using the Monte Carlo Simulation valuation model. United recognizes the impact of forfeitures as they occur. The value of restricted stock unit and performance stock unit awards is amortized into expense over the service period.

For the nine months ended September 30, 2022 and 2021, expense of $6.24 million and $4.42 million, respectively, was recognized related to restricted stock unit and performance stock unit awards granted to United employees, which was included in salaries and employee benefits expense. In addition, for the nine months ended September 30, 2022 and 2021, $412,000 and $397,000, respectively, was recognized in other expense for restricted stock unit awards granted to members of United’s Board of Directors.

A deferred income tax benefit related to stock-based compensation expense of $1.70 million and $1.23 million was included in the determination of income tax expense for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $19.1 million of unrecognized expense related to non-vested restricted stock unit and performance stock unit awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 2.9 years.

XML

Reclassifications Out of AOCI

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Reclassifications Out of AOCI

Reclassifications Out of AOCI

The following table presents the details regarding amounts reclassified out of AOCI for the periods indicated (in thousands). Amounts shown in parentheses reduce earnings.

Details about AOCI Components	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
	2022		2021		2022		2021
Realized gains (losses) on AFS securities:
	$	—	$	—	$	(3,688)	$	41	Securities gains (losses), net
	—		—		979		(14)		Income tax (expense) benefit
	$	—	$	—	$	(2,709)	$	27	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(4,473)	$	—	$	(6,242)	$	—	Investment securities interest revenue
	1,073		—		1,495		—		Income tax benefit
	$	(3,400)	$	—	$	(4,747)	$	—	Net of tax
Losses on derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	(48)	$	(153)	$	(295)	$	(444)	Long-term debt interest expense
	12		39		75		113		Income tax benefit
	$	(36)	$	(114)	$	(220)	$	(331)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(91)	$	(117)	$	(276)	$	(351)	Salaries and employee benefits expense
Actuarial losses	(78)		(143)		(234)		(431)		Other expense
	(169)		(260)		(510)		(782)		Total before tax
	43		66		130		200		Income tax benefit
	$	(126)	$	(194)	$	(380)	$	(582)	Net of tax
Total reclassifications for the period	$	(3,562)	$	(308)	$	(8,056)	$	(886)	Net of tax

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	81,161	$	73,816	$	196,022	$	217,782
Dividends on preferred stock	(1,719)		(1,719)		(5,157)		(5,157)
Earnings allocated to participating securities	(407)		(448)		(1,007)		(1,342)
Net income available to common shareholders	$	79,035	$	71,649	$	189,858	$	211,283
Weighted average shares outstanding:
Basic	106,687		87,211		106,616		87,274
Effect of dilutive securities:
Stock options	38		—		40		—
Restricted stock units	75		144		76		139
Diluted	106,800		87,355		106,732		87,413
Net income per common share:
Basic	$	0.74	$	0.82	$	1.78	$	2.42
Diluted	$	0.74	$	0.82	$	1.78	$	2.42

At September 30, 2022 and 2021, United had no potentially dilutive instruments outstanding that were not included in the above analysis.

XML

Regulatory Matters

9 Months Ended

Sep. 30, 2022

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Matters

Regulatory Matters

As of September 30, 2022, United and the Bank were categorized as well-capitalized under the regulatory requirements in effect at that time. To be categorized as well-capitalized, United and the Bank must have exceeded the well-capitalized guideline ratios in effect at the time, as set forth in the table below, and have met certain other requirements. Management believes that United and the Bank exceeded all well-capitalized requirements at September 30, 2022, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

Regulatory capital ratios at September 30, 2022 and December 31, 2021, along with the minimum amounts required for capital adequacy purposes and to be well-capitalized under regulatory requirements in effect at such times, are presented below for United and the Bank (dollars in thousands):

					United Community Banks, Inc. (Consolidated)						United Community Bank
	Minimum (1)		Well- Capitalized		September 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.13		%	12.46		%	12.94		%	12.87		%
Tier 1 capital	6.0		8.0		12.68			13.17			12.94			12.87
Total capital	8.0		10.0		14.62			14.65			13.75			13.46
Leverage ratio	4.0		5.0		9.41			8.75			9.58			8.53
CET1 capital					$	2,101,819		$	1,688,176		$	2,234,151		$	1,738,557
Tier 1 capital					2,198,241			1,784,598			2,234,151			1,738,557
Total capital					2,534,810			1,984,376			2,374,603			1,818,335
Risk-weighted assets					17,332,391			13,548,534			17,269,896			13,512,405
Average total assets for the leverage ratio					23,359,608			20,402,842			23,308,849			20,377,319

(1) As of September 30, 2022 and December 31, 2021 the additional capital conservation buffer in effect was 2.50%

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

United is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement United has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. United uses the same credit policies in making commitments and conditional obligations as it uses for underwriting on-balance sheet instruments. In most cases, collateral or other security is required to support financial instruments with credit risk.

The following table summarizes the contractual amount of off-balance sheet instruments as of the dates indicated (in thousands).

	September 30, 2022		December 31, 2021
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,592,092	$	3,591,975
Letters of credit	53,526		29,312

United holds minor investments in certain entities for tax credit and Community Reinvestment Act purposes. As of September 30, 2022 and December 31, 2021, the Bank had a recorded investment of $79.8 million and $52.7 million, respectively, in such investments, which is included in other assets on the consolidated balance sheet. As of September 30, 2022, United had committed to fund an additional $6.96 million related to future capital calls that are not reflected in the consolidated balance sheet.

As of September 30, 2022, the Holding Company also had $18.1 million in commitments for future capital calls to fintech fund limited partnerships that have not been reflected in the consolidated balance sheet.

United, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on United’s financial position or results of operations.

XML

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

United’s accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its 2021 10-K.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in United’s 2021 10-K.

Recently Adopted Standards and Recently Issued Standards

Recently Adopted Standards

In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments. The update amends the lease classification requirements for lessors to align them with practice under the former lease accounting standard. Specifically, lessors should classify a lease with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. United adopted this update as of January 1, 2022, with no material impact on the consolidated financial statements.

Recently Issued Standards

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. The update expands the current last-of-layer method to a portfolio layer method which allows multiple hedged layers of a single closed portfolio and non-prepayable financial assets. In addition, the update specifies that eligible hedging instruments may include spot-starting or forward-starting swaps and that the number of hedged layers corresponds with the number of hedges designated. Finally, the update provides additional guidance on the accounting for and disclosure of hedge basis adjustments. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The update eliminates the previous accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The update also requires that an entity disclose current-period gross charge-offs by year of origination. For public entities, this guidance is effective for fiscal years beginning after December 15, 2022. United does not expect the new guidance to have a material impact on the consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account and, therefore, is not considered in measuring fair value. For public entities, this guidance is effective for fiscal years beginning after December 15, 2023. United does not expect the new guidance to have a material impact on the consolidated financial statements.

XML

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental schedule of noncash investing and financing activities

The supplemental schedule of significant non-cash investing and financing activities for the nine months ended September 30, 2022 and 2021 is as follows (in thousands).

	Nine Months Ended September 30,
	2022		2021
Significant non-cash investing and financing transactions:
Transfers of loans to repossessed and foreclosed properties	$	2,566	$	1,712
Unsettled securities purchases	—		3,977
Transfers of AFS securities to HTM securities	1,288,982		—
Right-of-use assets obtained in exchange for lease liabilities	9,035		1,543
Acquisitions:
Assets acquired	3,254,173		22,823
Liabilities assumed	2,657,173		1,103
Net assets acquired	597,000		21,720
Common stock issued and options converted	596,376		4,401
Accrued purchase price and contingent consideration	—		7,700

XML

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of purchased assets and assumed liabilities

The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below (in thousands). 

Reliant
	Fair Value Recorded by United (1)
		January 1, 2022
	Assets
	Cash and cash equivalents	$	62,867
	Debt securities	249,107
	Loans held for sale	116,406
	Loans held for investment	2,320,737
	Premises and equipment	35,631
	Bank-owned life insurance	78,170
	Accrued interest receivable	12,027
	Net deferred tax asset	5,793
	Core deposit intangible	14,500
	Other assets	59,768
	Total assets acquired	$	2,955,006
	Liabilities
	Deposits	$	2,504,823
	Short-term borrowings	27,000
	Long-term debt	76,730
	Other liabilities	48,620
	Total liabilities assumed	2,657,173
	Total identifiable net assets	297,833
	Consideration transferred
	Cash	624
	Common stock issued (16,571,545 shares)	595,581
	Options converted	795
	Total fair value of consideration transferred	597,000
	Goodwill	$	299,167

(1) Fair values are preliminary and are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available.

Schedule of additional information related to acquired loan portfolio

The following table presents additional information related to the acquired Reliant loan portfolio at the acquisition date (in thousands).

	January 1, 2022
PCD loans:
Par value	$	258,462
ACL at acquisition	(12,737)
Non-credit discount	(3,294)
Purchase price	$	242,431
Non-PCD loans:
Fair value	$	2,078,306
Gross contractual amounts receivable	2,355,205
Estimate of contractual cash flows not expected to be collected	25,990

Schedule of actual results and pro forma information

The actual results and pro forma information were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	Revenue		Net Income		Revenue		Net Income
2022
Actual Reliant results included in statement of income since acquisition date	$	29,618	$	16,516	$	72,685	$	32,931
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021	216,171		81,681		618,636		219,010
2021
Actual FinTrust results included in statement of income since acquisition date	$	2,017	$	(49)	$	2,017	$	(49)
Supplemental consolidated pro forma as if Reliant had been acquired January 1, 2021 and FinTrust had been acquired January 1, 2020	$	232,667	$	86,576	$	672,405	$	233,053

XML

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost basis, unrealized gains and losses and fair value of HTM debt securities

The amortized cost basis, unrealized gains and losses and fair value of HTM debt securities as of the dates indicated are as follows (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	19,826	$	—	$	2,573	$	17,253
U.S. Government agencies & GSEs	99,620		—		18,275		81,345
State and political subdivisions	301,520		45		70,180		231,385
Residential MBS, Agency & GSEs	1,519,094		14		227,307		1,291,801
Commercial MBS, Agency & GSEs	721,345		—		114,360		606,985
Supranational entities	15,000		—		2,609		12,391
Total	$	2,676,405	$	59	$	435,304	$	2,241,160
As of December 31, 2021
U.S. Treasuries	$	19,803	$	20	$	—	$	19,823
U.S. Government agencies & GSEs	70,180		—		1,121		69,059
State and political subdivisions	257,688		4,341		4,080		257,949
Residential MBS, Agency & GSEs	381,641		2,021		3,687		379,975
Commercial MBS, Agency & GSEs	411,786		4,106		8,915		406,977
Supranational entities	$	15,000	$	21	$	—	$	15,021
Total	$	1,156,098	$	10,509	$	17,803	$	1,148,804

Schedule of amortized cost basis, unrealized gains and losses, and fair value of AFS debt securities

The amortized cost basis, unrealized gains and losses, and fair value of AFS debt securities as of the dates indicated are presented below (in thousands).

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of September 30, 2022
U.S. Treasuries	$	194,301	$	—	$	15,828	$	178,473
U.S. Government agencies & GSEs	272,492		655		17,121		256,026
State and political subdivisions	348,099		—		32,597		315,502
Residential MBS, Agency & GSEs	1,658,924		6		161,282		1,497,648
Residential MBS, Non-agency	382,185		—		22,943		359,242
Commercial MBS, Agency & GSEs	747,238		584		74,751		673,071
Commercial MBS, Non-agency	31,676		—		1,144		30,532
Corporate bonds	252,486		59		26,635		225,910
Asset-backed securities	333,665		10		7,193		326,482
Total	$	4,221,066	$	1,314	$	359,494	$	3,862,886
As of December 31, 2021
U.S. Treasuries	$	218,027	$	1,661	$	2,168	$	217,520
U.S. Government agencies & GSEs	189,855		605		3,428		187,032
State and political subdivisions	263,269		15,237		2,662		275,844
Residential MBS, Agency & GSEs	2,079,700		9,785		28,521		2,060,964
Residential MBS, Non-agency	81,925		2,249		4		84,170
Commercial MBS, Agency & GSEs	870,563		2,974		16,156		857,381
Commercial MBS, Non-agency	15,202		1,268		—		16,470
Corporate bonds	194,164		814		1,812		193,166
Asset-backed securities	603,824		2,000		1,547		604,277
Total	$	4,516,529	$	36,593	$	56,298	$	4,496,824

Schedule of HTM debt securities in an unrealized loss position

The following table summarizes HTM debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	17,253	$	2,573	$	—	$	—	$	17,253	$	2,573
U.S. Government agencies & GSEs	37,829		8,757		43,516		9,518		81,345		18,275
State and political subdivisions	127,575		32,375		96,164		37,805		223,739		70,180
Residential MBS, Agency & GSEs	650,062		105,555		640,314		121,752		1,290,376		227,307
Commercial MBS, Agency & GSEs	297,445		43,092		309,539		71,268		606,984		114,360
Supranational entities	12,391		2,609		—		—		12,391		2,609
Total unrealized loss position	$	1,142,555	$	194,961	$	1,089,533	$	240,343	$	2,232,088	$	435,304
As of December 31, 2021
U.S. Government agencies & GSEs	$	64,658	$	888	$	4,401	$	233	$	69,059	$	1,121
State and political subdivisions	131,128		3,590		9,006		490		140,134		4,080
Residential MBS, Agency & GSEs	289,132		3,687		—		—		289,132		3,687
Commercial MBS, Agency & GSEs	314,049		8,540		10,384		375		324,433		8,915
Total unrealized loss position	$	798,967	$	16,705	$	23,791	$	1,098	$	822,758	$	17,803

Schedule of AFS debt securities in an unrealized loss position

The following table summarizes AFS debt securities in an unrealized loss position as of the dates indicated (in thousands).

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of September 30, 2022
U.S. Treasuries	$	92,422	$	2,882	$	86,051	$	12,946	$	178,473	$	15,828
U.S. Government agencies & GSEs	117,567		4,819		60,251		12,302		177,818		17,121
State and political subdivisions	257,976		17,220		55,291		15,377		313,267		32,597
Residential MBS, Agency & GSEs	1,213,430		119,863		282,679		41,419		1,496,109		161,282
Residential MBS, Non-agency	359,242		22,943		—		—		359,242		22,943
Commercial MBS, Agency & GSEs	367,162		19,548		278,170		55,203		645,332		74,751
Commercial MBS, Non-agency	30,532		1,144		—		—		30,532		1,144
Corporate bonds	170,581		18,944		52,727		7,691		223,308		26,635
Asset-backed securities	187,039		2,640		108,353		4,553		295,392		7,193
Total unrealized loss position	$	2,795,951	$	210,003	$	923,522	$	149,491	$	3,719,473	$	359,494
As of December 31, 2021
U.S. Treasuries	$	111,606	$	2,168	$	—	$	—	$	111,606	$	2,168
U.S. Government agencies & GSEs	132,893		2,591		20,093		837		152,986		3,428
State and political subdivisions	69,302		2,581		3,148		81		72,450		2,662
Residential MBS, Agency & GSEs	1,534,744		25,799		74,481		2,722		1,609,225		28,521
Residential MBS, Non-agency	12,608		4		—		—		12,608		4
Commercial MBS, Agency & GSEs	582,235		13,098		66,014		3,058		648,249		16,156
Corporate bonds	149,246		1,811		16		1		149,262		1,812
Asset-backed securities	195,164		1,546		571		1		195,735		1,547
Total unrealized loss position	$	2,787,798	$	49,598	$	164,323	$	6,700	$	2,952,121	$	56,298

Schedule of accrued interest receivable

The following table presents accrued interest receivable for the periods indicated on HTM and AFS debt securities (in thousands), which was excluded from the estimate of credit losses.

	Accrued Interest Receivable
	September 30, 2022		December 31, 2021
HTM	$	6,135	$	3,596
AFS	13,232		9,868

Schedule of amortized cost and fair value of AFS and HTM securities by contractual maturity

The amortized cost and fair value of AFS and HTM debt securities at September 30, 2022, by contractual maturity, are presented in the following table (in thousands). Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. 

	AFS				HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year:
U.S. Treasuries	$	80,116	$	79,266	$	—	$	—
U.S. Government agencies & GSEs	174		172		—		—
State and political subdivisions	15,002		14,990		5,200		5,201
Corporate bonds	2,732		2,680		—		—
	98,024		97,108		5,200		5,201
1 to 5 years:
U.S. Treasuries	99,248		86,295		—		—
U.S. Government agencies & GSEs	38,672		34,652		—		—
State and political subdivisions	46,320		44,682		14,207		14,067
Corporate bonds	164,771		149,932		—		—
	349,011		315,561		14,207		14,067
5 to 10 years:
U.S. Treasuries	14,937		12,912		19,826		17,253
U.S. Government agencies & GSEs	77,779		69,039		53,505		45,109
State and political subdivisions	123,790		110,478		31,603		26,712
Corporate bonds	84,190		72,457		—		—
Supranational entities	—		—		15,000		12,391
	300,696		264,886		119,934		101,465
More than 10 years:
U.S. Government agencies & GSEs	155,867		152,163		46,115		36,236
State and political subdivisions	162,987		145,352		250,510		185,405
Corporate bonds	793		841		—		—
	319,647		298,356		296,625		221,641
Debt securities not due at a single maturity date:
Asset-backed securities	333,665		326,482		—		—
Residential MBS	2,041,109		1,856,890		1,519,094		1,291,801
Commercial MBS	778,914		703,603		721,345		606,985
Total	$	4,221,066	$	3,862,886	$	2,676,405	$	2,241,160

Schedule of AFS securities sales activity

The following table summarizes AFS securities sales activity for the three and nine months ended September 30, 2022 and 2021 (in thousands).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Proceeds from sales	$	—	$	24,901	$	281,521	$	103,012
Gross realized gains	$	—	$	—	$	1,009	$	641
Gross realized losses	—		—		(4,697)		(600)
Securities gains (losses), net	$	—	$	—	$	(3,688)	$	41
Income tax expense (benefit) attributable to sales	$	—	$	—	$	(979)	$	14

XML

Loans and Leases and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of major classifications of loan portfolio

Major classifications of the loan and lease portfolio (collectively referred to as the “loan portfolio” or “loans”) are summarized as of the dates indicated as follows (in thousands).

	September 30, 2022		December 31, 2021
Owner occupied commercial real estate	$	2,700,345	$	2,321,685
Income producing commercial real estate	3,298,847		2,600,858
Commercial & industrial (1)	2,237,591		1,910,162
Commercial construction	1,514,145		1,014,830
Equipment financing	1,280,856		1,083,021
Total commercial	11,031,784		8,930,556
Residential mortgage	2,149,490		1,637,885
HELOC	832,140		694,034
Residential construction	422,737		359,815
Manufactured housing	300,874		—
Consumer	145,459		138,056
Total loans	14,882,484		11,760,346
Less allowance for credit losses - loans	(148,502)		(102,532)
Loans, net	$	14,733,982	$	11,657,814

(1) Commercial and industrial loans as of September 30, 2022 and December 31, 2021 included $2.44 million and $88.3 million of PPP loans, respectively.

Schedule of loans held for investment sold

The following table presents the amortized cost of loans held for investment that were sold in the periods indicated (in thousands). The gains on these loan sales were included in noninterest income on the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Guaranteed portion of SBA/USDA loans	$	20,405	$	13,484	$	87,867	$	57,132
Equipment financing receivables	21,557		19,273		65,534		39,240
Total	$	41,962	$	32,757	$	153,401	$	96,372

Schedule of components of net investment in leases

At September 30, 2022 and December 31, 2021, equipment financing receivables included leases of $44.0 million and $37.7 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	September 30, 2022		December 31, 2021
Minimum future lease payments receivable	$	47,177	$	39,962
Estimated residual value of leased equipment	3,046		3,216
Initial direct costs	744		669
Security deposits	(472)		(687)
Unearned income	(6,482)		(5,432)
Net investment in leases	$	44,013	$	37,728

Schedule of minimum future lease payments expected to be received from equipment financing lease contracts

Minimum future lease payments expected to be received from equipment financing lease contracts as of September 30, 2022 were as follows (in thousands): 

Year
Remainder of 2022	$	4,521
2023	16,041
2024	11,714
2025	8,237
2026	4,891
Thereafter	1,773
Total	$	47,177

Schedule of loans by aging category and accrual status

The following table presents the aging of the amortized cost basis in loans by aging category and accrual status as of the dates indicated (in thousands). Past due status is based on contractual terms of the loan. The accrual of interest is generally discontinued when a loan becomes 90 days past due.

	Accruing
	Current Loans		Loans Past Due
			30 - 59 Days		60 - 89 Days		> 90 Days		Nonaccrual Loans		Total Loans
As of September 30, 2022
Owner occupied commercial real estate	$	2,696,495	$	2,597	$	376	$	—	$	877	$	2,700,345
Income producing commercial real estate	3,292,966		3,170		48		—		2,663		3,298,847
Commercial & industrial	2,224,863		1,383		213		24		11,108		2,237,591
Commercial construction	1,513,544		451		—		—		150		1,514,145
Equipment financing	1,274,342		1,918		1,398		—		3,198		1,280,856
Total commercial	11,002,210		9,519		2,035		24		17,996		11,031,784
Residential mortgage	2,136,977		1,703		386		—		10,424		2,149,490
HELOC	829,400		1,393		196		—		1,151		832,140
Residential construction	422,274		92		267		—		104		422,737
Manufactured housing	292,394		3,589		704		—		4,187		300,874
Consumer	145,166		223		49		4		17		145,459
Total loans	$	14,828,421	$	16,519	$	3,637	$	28	$	33,879	$	14,882,484
As of December 31, 2021
Owner occupied commercial real estate	$	2,318,944	$	27	$	—	$	—	$	2,714	$	2,321,685
Income producing commercial real estate	2,593,124		146		—		—		7,588		2,600,858
Commercial & industrial	1,903,730		584		419		—		5,429		1,910,162
Commercial construction	1,014,211		—		276		—		343		1,014,830
Equipment financing	1,079,180		1,415		685		—		1,741		1,083,021
Total commercial	8,909,189		2,172		1,380		—		17,815		8,930,556
Residential mortgage	1,622,754		1,583		235		—		13,313		1,637,885
HELOC	691,814		920		88		—		1,212		694,034
Residential construction	358,741		654		—		—		420		359,815
Consumer	137,564		421		19		—		52		138,056
Total loans	$	11,720,062	$	5,750	$	1,722	$	—	$	32,812	$	11,760,346

Schedule of nonaccrual loans by loan class

The following table presents nonaccrual loans held for investment by loan class for the periods indicated (in thousands). 

	Nonaccrual Loans
	September 30, 2022						December 31, 2021
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	537	$	340	$	877	$	2,141	$	573	$	2,714
Income producing commercial real estate	2,263		400		2,663		6,873		715		7,588
Commercial & industrial	10,061		1,047		11,108		3,715		1,714		5,429
Commercial construction	47		103		150		—		343		343
Equipment financing	449		2,749		3,198		—		1,741		1,741
Total commercial	13,357		4,639		17,996		12,729		5,086		17,815
Residential mortgage	2,239		8,185		10,424		3,126		10,187		13,313
HELOC	300		851		1,151		219		993		1,212
Residential construction	67		37		104		280		140		420
Manufactured housing	—		4,187		4,187		—		—		—
Consumer	1		16		17		6		46		52
Total	$	15,964	$	17,915	$	33,879	$	16,360	$	16,452	$	32,812

Schedule of amortized cost of loans by risk category by vintage year

The following tables present the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of September 30, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	537,628	$	690,355	$	630,238	$	217,689	$	132,341	$	297,665	$	107,380	$	5,948	$	2,619,244
Income producing commercial real estate	659,896		810,374		770,008		301,271		178,480		302,937		43,144		9,127		3,075,237
Commercial & industrial	391,665		442,865		199,960		142,415		126,773		80,396		691,597		18,923		2,094,594
Commercial construction	497,066		478,007		284,335		113,523		13,002		21,633		72,161		1,343		1,481,070
Equipment financing	535,508		411,108		187,297		108,817		31,409		2,596		—		—		1,276,735
Total commercial	2,621,763		2,832,709		2,071,838		883,715		482,005		705,227		914,282		35,341		10,546,880
Residential mortgage	640,179		762,959		339,633		94,368		58,005		237,641		8		3,120		2,135,913
HELOC	—		—		—		—		—		—		807,985		22,482		830,467
Residential construction	259,062		144,816		6,233		1,895		1,637		8,474		65		375		422,557
Manufactured housing	58,475		56,252		50,323		35,847		32,026		62,615		—		—		295,538
Consumer	58,222		34,549		18,008		5,420		2,314		856		25,869		129		145,367
	3,637,701		3,831,285		2,486,035		1,021,245		575,987		1,014,813		1,748,209		61,447		14,376,722
Special Mention
Owner occupied commercial real estate	6,540		7,663		5,262		9,585		4,217		5,164		3,065		2,964		44,460
Income producing commercial real estate	46,138		10,285		45,578		20,106		21,798		13,318		1		—		157,224
Commercial & industrial	16,279		32,282		5,751		847		1,337		250		34,169		297		91,212
Commercial construction	530		35		62		13,319		4,917		29		—		—		18,892
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	69,487		50,265		56,653		43,857		32,269		18,761		37,235		3,261		311,788
Substandard
Owner occupied commercial real estate	6,801		529		4,016		8,654		1,210		14,184		210		1,037		36,641
Income producing commercial real estate	34,352		1,779		1,368		4,621		13,292		10,519		391		64		66,386
Commercial & industrial	5,194		9,958		2,247		5,696		10,935		1,273		16,035		447		51,785
Commercial construction	148		42		47		3		3,925		9,772		—		246		14,183
Equipment financing	646		1,044		1,141		696		576		18		—		—		4,121
Total commercial	47,141		13,352		8,819		19,670		29,938		35,766		16,636		1,794		173,116
Residential mortgage	1,401		1,167		1,361		1,861		2,483		5,145		—		159		13,577
HELOC	—		—		—		—		—		—		24		1,649		1,673
Residential construction	2		—		—		21		4		153		—		—		180
Manufactured housing	424		672		739		690		953		1,858		—		—		5,336
Consumer	—		35		15		2		32		8		—		—		92
	48,968		15,226		10,934		22,244		33,410		42,930		16,660		3,602		193,974
Total	$	3,756,156	$	3,896,776	$	2,553,622	$	1,087,346	$	641,666	$	1,076,504	$	1,802,104	$	68,310	$	14,882,484

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of December 31, 2021	2021		2020		2019		2018		2017		Prior
Pass
Owner occupied commercial real estate	$	643,151	$	674,124	$	278,702	$	153,233	$	139,584	$	267,460	$	68,354	$	17,150	$	2,241,758
Income producing commercial real estate	668,322		678,487		333,911		221,218		165,563		219,459		41,157		11,830		2,339,947
Commercial & industrial	638,567		270,150		178,944		136,281		50,567		72,904		514,750		4,361		1,866,524
Commercial construction	378,695		303,154		149,740		40,625		22,983		13,206		12,628		1,673		922,704
Equipment financing	563,618		271,913		167,904		63,254		13,145		903		—		—		1,080,737
Total commercial	2,892,353		2,197,828		1,109,201		614,611		391,842		573,932		636,889		35,014		8,451,670
Residential mortgage	781,007		370,092		108,091		64,346		71,552		221,131		9		3,915		1,620,143
HELOC	—		—		—		—		—		—		676,545		14,994		691,539
Residential construction	325,111		16,301		2,802		2,278		3,144		9,352		—		33		359,021
Consumer	57,530		29,218		10,757		5,137		1,439		1,355		32,312		111		137,859
	4,056,001		2,613,439		1,230,851		686,372		467,977		805,770		1,345,755		54,067		11,260,232
Special Mention
Owner occupied commercial real estate	7,772		2,979		16,639		4,374		6,007		2,641		248		286		40,946
Income producing commercial real estate	64,139		27,875		21,875		22,292		18,415		21,880		—		—		176,476
Commercial & industrial	1,037		1,831		2,740		597		273		303		2,242		—		9,023
Commercial construction	14,283		16,237		13,149		22,479		11,766		52		—		—		77,966
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	87,231		48,922		54,403		49,742		36,461		24,876		2,490		286		304,411
Substandard
Owner occupied commercial real estate	11,987		1,049		4,216		3,712		5,829		11,088		—		1,100		38,981
Income producing commercial real estate	15,485		12,618		3,779		29,212		6,726		16,531		—		84		84,435
Commercial & industrial	2,741		1,615		5,284		12,685		1,232		5,863		4,326		869		34,615
Commercial construction	3,464		157		272		11		9,750		255		—		251		14,160
Equipment financing	428		590		676		503		84		3		—		—		2,284
Total commercial	34,105		16,029		14,227		46,123		23,621		33,740		4,326		2,304		174,475
Residential mortgage	3,339		1,585		2,813		3,229		1,205		4,744		—		827		17,742
HELOC	—		—		—		—		—		—		329		2,166		2,495
Residential construction	407		—		30		51		—		306		—		—		794
Consumer	37		16		22		26		22		50		3		21		197
	37,888		17,630		17,092		49,429		24,848		38,840		4,658		5,318		195,703
Total	$	4,181,120	$	2,679,991	$	1,302,346	$	785,543	$	529,286	$	869,486	$	1,352,903	$	59,671	$	11,760,346

Schedule of loans modified under the terms of a TDR, including TDR loans that defaulted

Loans modified under the terms of a TDR during the three and nine months ended September 30, 2022 and 2021 are presented in the following table. In addition, the table presents loans modified under the terms of a TDR that defaulted (became 90 days or more delinquent or otherwise in default of modified terms) during the periods presented and were initially restructured within one year prior to default (dollars in thousands).

	New TDRs									TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted
		Post-Modification Amortized Cost by Type of Modification
	Number of  Contracts	Rate   Reduction		Structure		Other		Total		Number of   Contracts	Amortized Cost
Three Months Ended September 30, 2022
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	1	—		715		—		715		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		2,103		—		2,103		1	30
Total commercial	12	—		2,818		—		2,818		1	30
Residential mortgage	4	—		304		—		304		2	400
HELOC	—	—		—		—		—		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	16	$	—	$	3,122	$	—	$	3,122	3	$	430
Nine Months Ended September 30, 2022
Owner occupied commercial real estate	1	$	—	$	112	$	—	$	112	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	2	—		1,118		—		1,118		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	38	—		6,952		—		6,952		10	438
Total commercial	41	—		8,182		—		8,182		10	438
Residential mortgage	8	—		877		—		877		3	456
HELOC	7	—		1,242		6		1,248		—	—
Residential construction	—	—		—		—		—		—	—
Manufactured housing	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	56	$	—	$	10,301	$	6	$	10,307	13	$	894
Three Months Ended September 30, 2021
Owner occupied commercial real estate	—	$	—	$	—	$	—	$	—	—	$	—
Income producing commercial real estate	—	—		—		—		—		—	—
Commercial & industrial	3	—		166		—		166		—	—
Commercial construction	—	—		—		—		—		—	—
Equipment financing	11	—		399		—		399		3	96
Total commercial	14	—		565		—		565		3	96
Residential mortgage	6	—		649		—		649		1	180
HELOC	—	—		—		—		—		1	43
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	20	$	—	$	1,214	$	—	$	1,214	5	$	319
Nine Months Ended September 30, 2021
Owner occupied commercial real estate	1	$	—	$	543	$	—	$	543	—	$	—
Income producing commercial real estate	3	—		—		1,697		1,697		—	—
Commercial & industrial	7	—		531		103		634		1	11
Commercial construction	1	—		309		—		309		—	—
Equipment financing	47	—		2,861		—		2,861		11	296
Total commercial	59	—		4,244		1,800		6,044		12	307
Residential mortgage	12	—		1,040		—		1,040		4	593
HELOC	—	—		—		—		—		2	92
Residential construction	—	—		—		—		—		—	—
Consumer	—	—		—		—		—		—	—
Total loans	71	$	—	$	5,284	$	1,800	$	7,084	18	$	992

Schedule of balance and activity in the ACL by portfolio segment

The following table presents the balance and activity in the ACL by portfolio segment for the periods indicated (in thousands).

	Three Months Ended September 30,
	2022										2021
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	16,774	$	—	$	90	$	2,192	$	19,056	$	17,292	$	(443)	$	536	$	(3,241)	$	14,144
Income producing commercial real estate	33,284		(202)		26		(1,498)		31,610		30,967		(120)		75		(7,531)		23,391
Commercial & industrial	18,267		(373)		1,117		1,907		20,918		16,414		(320)		411		(262)		16,243
Commercial construction	16,062		—		(10)		1,902		17,954		9,180		—		123		(1,131)		8,172
Equipment financing	18,409		(1,987)		866		3,277		20,565		18,100		(1,165)		653		(288)		17,300
Residential mortgage	17,035		—		66		2,234		19,335		10,965		(127)		76		559		11,473
HELOC	7,487		(27)		129		884		8,473		6,357		(65)		167		(40)		6,419
Residential construction	2,086		—		109		109		2,304		1,918		—		37		(19)		1,936
Manufactured housing	6,614		(225)		5		958		7,352		—		—		—		—		—
Consumer	907		(1,010)		292		746		935		423		(611)		222		508		542
ACL - loans	136,925		(3,824)		2,690		12,711		148,502		111,616		(2,851)		2,300		(11,445)		99,620
ACL - unfunded commitments	16,117		—		—		2,681		18,798		10,844		—		—		411		11,255
Total ACL	$	153,042	$	(3,824)	$	2,690	$	15,392	$	167,300	$	122,460	$	(2,851)	$	2,300	$	(11,034)	$	110,875

	Nine Months Ended September 30,
	2022												2021
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	14,282	$	266	$	—	$	1,631	$	2,877	$	19,056	$	20,673	$	(1,503)	$	932	$	(5,958)	$	14,144
Income producing commercial real estate	24,156		4,366		(202)		432		2,858		31,610		41,737		(174)		304		(18,476)		23,391
Commercial & industrial	16,592		2,337		(4,978)		3,095		3,872		20,918		22,019		(4,017)		6,855		(8,614)		16,243
Commercial construction	9,956		2,857		(41)		548		4,634		17,954		10,952		(224)		618		(3,174)		8,172
Equipment financing	16,290		—		(4,644)		2,349		6,570		20,565		16,820		(4,411)		2,087		2,804		17,300
Residential mortgage	12,390		385		(53)		267		6,346		19,335		15,341		(342)		393		(3,919)		11,473
HELOC	6,568		60		(36)		565		1,316		8,473		8,417		(99)		386		(2,285)		6,419
Residential construction	1,847		1		—		208		248		2,304		764		(10)		140		1,042		1,936
Manufactured housing	—		2,438		(533)		14		5,433		7,352		—		—		—		—		—
Consumer	451		27		(2,544)		879		2,122		935		287		(1,435)		710		980		542
ACL - loans	102,532		12,737		(13,031)		9,988		36,276		148,502		137,010		(12,215)		12,425		(37,600)		99,620
ACL - unfunded commitments	10,992		—		—		—		7,806		18,798		10,558		—		—		697		11,255
Total ACL	$	113,524	$	12,737	$	(13,031)	$	9,988	$	44,082	$	167,300	$	147,568	$	(12,215)	$	12,425	$	(36,903)	$	110,875

(1) Represents the initial ACL related to PCD loans acquired in the Reliant transaction.

XML

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of derivative financial instruments on consolidated balance sheet

The table below presents the fair value of derivative financial instruments, which are included in other assets and other liabilities on the consolidated balance sheet, as of the dates indicated (in thousands):

	September 30, 2022						December 31, 2021
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Derivative Asset		Derivative Liability				Derivative Asset		Derivative Liability
Derivatives designated as hedging instruments:
Cash flow hedge of subordinated debt	$	100,000	$	16,311	$	—	$	100,000	$	6,389	$	—
Cash flow hedge of trust preferred securities	20,000		—		—		20,000		—		—
Fair value hedge of brokered time deposits	—		—		—		10,000		—		—
Total	120,000		16,311		—		130,000		6,389		—
Derivatives not designated as hedging instruments:
Customer derivative positions	1,090,067		16		92,444		1,206,145		28,656		10,663
Dealer offsets to customer derivative positions	1,090,067		24,005		—		1,230,885		974		9,232
Risk participations	79,827		4		1		69,385		16		7
Mortgage banking - loan commitment	33,265		290		155		110,897		3,450		—
Mortgage banking - forward sales commitment	88,000		1,994		30		201,419		67		202
Bifurcated embedded derivatives	51,935		11,724		—		51,935		2,928		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		13,505		51,935		—		5,041
Total	2,485,096		38,033		106,135		2,922,601		36,091		25,145
Total derivatives	$	2,605,096	$	54,344	$	106,135	$	3,052,601	$	42,480	$	25,145
Total gross derivative instruments			$	54,344	$	106,135			$	42,480	$	25,145
Less: Amounts subject to master netting agreements			(230)		(230)				(694)		(694)
Less: Cash collateral received/pledged			(39,811)		(13,155)				(6,620)		(14,148)
Net amount			$	14,303	$	92,750			$	35,166	$	10,303

Schedule of effect of derivatives in hedging relationships on the consolidated statement of income

The table below presents the effect of derivatives in hedging relationships, all of which are interest rate contracts, on the consolidated statement of income for the periods indicated (in thousands). 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total interest expense presented in the consolidated statements of income	$	(14,113)	$	(6,636)	$	(29,855)	$	(23,547)
Effect of hedging relationships on interest expense:
Net income recognized on fair value hedges	—		43		28		167
Net expense recognized on cash flow hedges (1)	(48)		(153)		(295)		(444)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $119,000 for both the three months ended September 30, 2022 and 2021, and $353,000 for both the nine months ended September 30, 2022 and 2021.

Schedule of gains and losses recognized in income on derivatives not designated as hedging instruments

The table below presents the gains and losses recognized in income on derivatives not designated as hedging instruments for the periods indicated (in thousands). 

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Customer derivatives and dealer offsets	Other noninterest income	$	471	$	599	$	1,685	$	2,551
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(108)		—		90		417
Mortgage banking derivatives	Mortgage loan revenue	1,047		(1,407)		8,297		(1,065)
Risk participations	Other noninterest income	(1)		—		93		—
		$	1,409	$	(808)	$	10,165	$	1,903

XML

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of carrying amount of goodwill and other intangible assets

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands).  

	September 30, 2022		December 31, 2021
Core deposit intangible	$	46,900	$	38,192
Less: accumulated amortization	(24,690)		(25,870)
Net core deposit intangible	22,210		12,322
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(916)		(322)
Net customer relationship intangible	7,484		8,078
Total intangibles subject to amortization, net (1)	29,694		20,400
Goodwill	751,174		452,007
Total goodwill and other intangible assets, net	$	780,868	$	472,407

(1) As intangible assets become fully amortized, they are excluded from balances presented.

Schedule of changes in the carrying amounts of goodwill

The following is a summary of changes in the carrying amounts of goodwill (in thousands): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	751,174	$	367,809	$	452,007	$	367,809
Acquisitions	—		14,163		299,167		14,163
Balance, end of period (1)	$	751,174	$	381,972	$	751,174	$	381,972

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2021.

Schedule of estimated aggregate amortization expense for future periods

The estimated aggregate amortization expense for future periods for finite lived intangibles is as follows (in thousands):

Remainder of 2022	$	1,620
2023	5,903
2024	5,018
2025	4,051
2026	3,303
Thereafter	9,799
Total	$	29,694

XML

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021		Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate
2027 senior debentures	35,000		35,000		2015	2027	2025	5.500% through August 2025, 3-month LIBOR plus 3.71% thereafter
2030 senior debentures	100,000		100,000		2020	2030	2025	5.00% through June 2025, 3-month SOFR plus 4.87% thereafter
Total senior debentures	135,000		135,000
2028 subordinated debentures	100,000		100,000		2018	2028	2023	4.500% through January 2023, 3-month LIBOR plus 2.12% thereafter
2029 subordinated debentures	60,000		—		2019	2029	2024	5.125% until December 2024, 3-month SOFR plus 3.765% thereafter
Total subordinated debentures	160,000		100,000
Tidelands Statutory Trust I	8,248		8,248		2006	2036	*	3-month LIBOR plus 1.38%
Four Oaks Statutory Trust I	12,372		12,372		2006	2036	*	3-month LIBOR plus 1.35%
Community First Capital Trust I	3,093		—		2002	2032	*	Prime plus 0.50%
Community First Capital Trust II	5,155		—		2005	2035	*	3-month LIBOR plus 1.50%
Community First Capital Trust III	5,464		—		2007	2037	*	3-month LIBOR plus 3.00%
Total trust preferred securities	34,332		20,620
Less net discount	(4,817)		(8,260)
Total long-term debt	$	324,515	$	247,360

 * Indicates currently redeemable.

XML

Assets and Liabilities Measured at Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

September 30, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	178,473	$	—	$	—	$	178,473
U.S. Government agencies & GSEs	—		256,026		—		256,026
State and political subdivisions	—		315,502		—		315,502
Residential MBS	—		1,856,890		—		1,856,890
Commercial MBS	—		703,603		—		703,603
Corporate bonds	—		223,684		2,226		225,910
Asset-backed securities	—		326,482		—		326,482
Equity securities with readily available fair values	12,934		1,068		—		14,002
Mortgage loans held for sale	—		19,888		—		19,888
Deferred compensation plan assets	10,904		—		—		10,904
Servicing rights for SBA/USDA loans	—		—		6,078		6,078
Residential mortgage servicing rights	—		—		37,154		37,154
Derivative financial instruments	—		42,326		12,018		54,344
Total assets	$	202,311	$	3,745,469	$	57,476	$	4,005,256
Liabilities:
Deferred compensation plan liability	$	10,929	$	—	$	—	$	10,929
Derivative financial instruments	—		92,474		13,661		106,135
Total liabilities	$	10,929	$	92,474	$	13,661	$	117,064

December 31, 2021	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	217,520	$	—	$	—	$	217,520
U.S. Government agencies & GSEs	—		187,032		—		187,032
State and political subdivisions	—		275,844		—		275,844
Residential MBS	—		2,145,134		—		2,145,134
Commercial MBS	—		873,851		—		873,851
Corporate bonds	—		190,771		2,395		193,166
Asset-backed securities	—		604,277		—		604,277
Equity securities with readily available fair values	—		1,302		—		1,302
Mortgage loans held for sale	—		44,109		—		44,109
Deferred compensation plan assets	11,769		—		—		11,769
Servicing rights for SBA/USDA loans	—		—		6,513		6,513
Residential mortgage servicing rights	—		—		25,161		25,161
Derivative financial instruments	—		35,722		6,758		42,480
Total assets	$	229,289	$	4,358,042	$	40,827	$	4,628,158
Liabilities:
Deferred compensation plan liability	$	11,795	$	—	$	—	$	11,795
Derivative financial instruments	—		20,097		5,048		25,145
Total liabilities	$	11,795	$	20,097	$	5,048	$	36,940

Schedule of reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs

The following table shows a reconciliation of the beginning and ending balances for the periods indicated for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2022										2021
	Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds		Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds
Three Months Ended September 30,
Beginning balance	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287	$	6,889	$	3,944	$	6,115	$	21,568	$	1,707
Additions	—		—		411		704		—		86		—		354		2,813		500
Sales and settlements	—		—		(220)		(602)		—		—		—		(357)		(875)		—
Fair value adjustments included in OCI	—		—		—		—		(61)		—		—		—		—		165
Fair value adjustments included in earnings	1,819		2,866		(280)		1,921		—		42		505		49		(444)		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372
Nine Months Ended September 30,
Beginning balance	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395	$	10,779	$	2,408	$	6,462	$	16,216	$	1,750
Additions	—		99		1,799		4,594		—		261		97		1,193		9,806		500
Transfers from Level 3	(290)		—		—		—		—		—		—		—		—		—
Sales and settlements	—		(1)		(857)		(1,916)		—		—		—		(1,001)		(3,430)		—
Fair value adjustments included in OCI	—		—		—		—		(169)		—		—		—		—		122
Fair value adjustments included in earnings	5,550		8,515		(1,377)		9,315		—		(4,023)		1,944		(493)		470		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372

Schedule of reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs

The following table shows a reconciliation of the beginning and ending balances for the periods indicated for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2022										2021
	Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds		Derivative Assets		Derivative Liabilities		SBA/USDA loan servicing rights		Residential mortgage servicing rights		Corporate Bonds
Three Months Ended September 30,
Beginning balance	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287	$	6,889	$	3,944	$	6,115	$	21,568	$	1,707
Additions	—		—		411		704		—		86		—		354		2,813		500
Sales and settlements	—		—		(220)		(602)		—		—		—		(357)		(875)		—
Fair value adjustments included in OCI	—		—		—		—		(61)		—		—		—		—		165
Fair value adjustments included in earnings	1,819		2,866		(280)		1,921		—		42		505		49		(444)		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372
Nine Months Ended September 30,
Beginning balance	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395	$	10,779	$	2,408	$	6,462	$	16,216	$	1,750
Additions	—		99		1,799		4,594		—		261		97		1,193		9,806		500
Transfers from Level 3	(290)		—		—		—		—		—		—		—		—		—
Sales and settlements	—		(1)		(857)		(1,916)		—		—		—		(1,001)		(3,430)		—
Fair value adjustments included in OCI	—		—		—		—		(169)		—		—		—		—		122
Fair value adjustments included in earnings	5,550		8,515		(1,377)		9,315		—		(4,023)		1,944		(493)		470		—
Ending balance	$	12,018	$	13,661	$	6,078	$	37,154	$	2,226	$	7,017	$	4,449	$	6,161	$	23,062	$	2,372

Schedule of quantitative information about Level 3 fair value measurements for fair value on a recurring basis

The following table presents quantitative information about significant Level 3 inputs for fair value on a recurring basis as of the dates indicated. 

Level 3 Assets and Liabilities	Valuation Technique	Significant Unobservable Inputs	September 30, 2022			December 31, 2021
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	5.8% - 25.0%	13.5	%	0.0% - 45.4%	10.3	%
		Prepayment rate	0.0 - 35.1	16.8		3.2 - 31.3	16.3
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 10.5	9.5
		Prepayment rate	7.0 - 32.3	7.4		7.0 - 77.6	12.6
Corporate bonds	Discounted cash flow	Discount rate	5.9 - 6.1	6.0		3.6 - 3.8	3.6
Derivative assets - customer derivative positions	Internal model	Estimated loss rate	N/A	N/A		33.4 - 44.0	36.0
Derivative assets - mortgage	Internal model	Pull through rate	45.0 - 100	90.7		45.9 - 100	87.2
Derivative assets and liabilities - other	Dealer priced	Dealer priced	N/A	N/A		N/A	N/A

Schedule of loans held for sale at fair value under the fair value option

The following tables present the fair value and outstanding principal balance of loans accounted for under the fair value option, as well as the gain or loss recognized from the change in fair value for the periods indicated (in thousands).

Mortgage Loans Held for Sale
	September 30, 2022		December 31, 2021
Outstanding principal balance	$	20,180	$	42,581
Fair value	19,888		44,109

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Mortgage loan gains and other related fees	$	(809)	$	(1,609)	$	(1,820)	$	(3,330)

Schedule of presentation of assets measured at fair value on nonrecurring basis

The following table presents the fair value hierarchy and carrying value of assets that were still held as of September 30, 2022 and December 31, 2021, for which a nonrecurring fair value adjustment was recorded during the year-to-date periods presented (in thousands).

	Level 1		Level 2		Level 3		Total
September 30, 2022
Loans held for investment	$	—	$	—	$	1,820	$	1,820
Mortgage loans held for sale	—		—		2,079		2,079
December 31, 2021
Loans held for investment	$	—	$	—	$	2,536	$	2,536

Schedule of carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis

The carrying amount and fair values as of the dates indicated for other financial instruments that are not measured at fair value on a recurring basis are as follows (in thousands).

			Fair Value Level
	Carrying Amount		Level 1		Level 2		Level 3		Total
September 30, 2022
Assets:
HTM debt securities	$	2,676,405	$	17,253	$	2,223,907	$	—	$	2,241,160
Loans and leases, net	14,733,982		—		—		14,250,071		14,250,071
Liabilities:
Deposits	20,321,142		—		20,315,750		—		20,315,750
Long-term debt	324,515		—		—		313,944		313,944
December 31, 2021
Assets:
HTM debt securities	$	1,156,098	$	—	$	1,148,804	$	—	$	1,148,804
Loans and leases, net	11,657,814		—		—		11,607,821		11,607,821
Liabilities:
Deposits	18,241,179		—		18,239,934		—		18,239,934
Long-term debt	247,360		—		—		267,064		267,064

XML

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of restricted stock units and options outstanding and activity

The table below presents restricted stock unit and option activity for the nine months ended September 30, 2022.

	Restricted Stock Unit Awards					Options
	Shares	Weighted- Average Grant- Date Fair Value		Aggregate Intrinsic Value ($000)		Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($000)
Outstanding at December 31, 2021	808,474	$	25.15			35,460	$	8.38
Granted	335,866	32.81				48,239	20.88
Released / Exercised	(289,860)	25.11		$	10,252	(16,257)	20.77			$	252
Cancelled	(29,925)	26.06				—	—
Outstanding at September 30, 2022	824,555	28.25		27,293		67,442	14.33		3.0	1,266
Vested / Exercisable at September 30, 2022	—	—				67,442	14.33		3.0	1,266

XML

Reclassifications Out of AOCI (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of reclassifications out of AOCI

The following table presents the details regarding amounts reclassified out of AOCI for the periods indicated (in thousands). Amounts shown in parentheses reduce earnings.

Details about AOCI Components	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
	2022		2021		2022		2021
Realized gains (losses) on AFS securities:
	$	—	$	—	$	(3,688)	$	41	Securities gains (losses), net
	—		—		979		(14)		Income tax (expense) benefit
	$	—	$	—	$	(2,709)	$	27	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(4,473)	$	—	$	(6,242)	$	—	Investment securities interest revenue
	1,073		—		1,495		—		Income tax benefit
	$	(3,400)	$	—	$	(4,747)	$	—	Net of tax
Losses on derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	(48)	$	(153)	$	(295)	$	(444)	Long-term debt interest expense
	12		39		75		113		Income tax benefit
	$	(36)	$	(114)	$	(220)	$	(331)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(91)	$	(117)	$	(276)	$	(351)	Salaries and employee benefits expense
Actuarial losses	(78)		(143)		(234)		(431)		Other expense
	(169)		(260)		(510)		(782)		Total before tax
	43		66		130		200		Income tax benefit
	$	(126)	$	(194)	$	(380)	$	(582)	Net of tax
Total reclassifications for the period	$	(3,562)	$	(308)	$	(8,056)	$	(886)	Net of tax

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	81,161	$	73,816	$	196,022	$	217,782
Dividends on preferred stock	(1,719)		(1,719)		(5,157)		(5,157)
Earnings allocated to participating securities	(407)		(448)		(1,007)		(1,342)
Net income available to common shareholders	$	79,035	$	71,649	$	189,858	$	211,283
Weighted average shares outstanding:
Basic	106,687		87,211		106,616		87,274
Effect of dilutive securities:
Stock options	38		—		40		—
Restricted stock units	75		144		76		139
Diluted	106,800		87,355		106,732		87,413
Net income per common share:
Basic	$	0.74	$	0.82	$	1.78	$	2.42
Diluted	$	0.74	$	0.82	$	1.78	$	2.42

XML

Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Schedule of minimum amounts required for capital adequacy purposes

Regulatory capital ratios at September 30, 2022 and December 31, 2021, along with the minimum amounts required for capital adequacy purposes and to be well-capitalized under regulatory requirements in effect at such times, are presented below for United and the Bank (dollars in thousands):

					United Community Banks, Inc. (Consolidated)						United Community Bank
	Minimum (1)		Well- Capitalized		September 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.13		%	12.46		%	12.94		%	12.87		%
Tier 1 capital	6.0		8.0		12.68			13.17			12.94			12.87
Total capital	8.0		10.0		14.62			14.65			13.75			13.46
Leverage ratio	4.0		5.0		9.41			8.75			9.58			8.53
CET1 capital					$	2,101,819		$	1,688,176		$	2,234,151		$	1,738,557
Tier 1 capital					2,198,241			1,784,598			2,234,151			1,738,557
Total capital					2,534,810			1,984,376			2,374,603			1,818,335
Risk-weighted assets					17,332,391			13,548,534			17,269,896			13,512,405
Average total assets for the leverage ratio					23,359,608			20,402,842			23,308,849			20,377,319

(1) As of September 30, 2022 and December 31, 2021 the additional capital conservation buffer in effect was 2.50%

XML

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of contractual amount of off-balance sheet instruments

The following table summarizes the contractual amount of off-balance sheet instruments as of the dates indicated (in thousands).

	September 30, 2022		December 31, 2021
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,592,092	$	3,591,975
Letters of credit	53,526		29,312

XML

Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Significant non-cash investing and financing transactions:
Transfers of loans to repossessed and foreclosed properties			$ 2,566,000	$ 1,712,000
Unsettled securities purchases			0	3,977,000
Transfers of AFS securities to HTM securities	$ 0		1,288,982,000	0
Right-of-use assets obtained in exchange for lease liabilities			9,035,000	1,543,000
Acquisitions:
Assets acquired			3,254,173,000	22,823,000
Liabilities assumed			2,657,173,000	1,103,000
Net assets acquired			597,000,000	21,720,000
Common stock issued and options converted		$ 4,401,000	596,376,000	4,401,000
Accrued purchase price and contingent consideration			$ 0	$ 7,700,000

XML

Acquisitions - Narrative (Details)		3 Months Ended		9 Months Ended
	Jan. 01, 2022 USD ($) bank_branch	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Business Acquisition [Line Items]
Merger-related and other charges		$ 1,746,000	$ 1,437,000	$ 17,905,000	$ 4,058,000
Reliant
Business Acquisition [Line Items]
Number of banking branches | bank_branch	25
Goodwill expected to be tax deductible	$ 0
Reliant | Core deposit intangible
Business Acquisition [Line Items]
Expected useful life of acquired intangible (in years)	10 years
Reliant | Merger-related costs
Business Acquisition [Line Items]
Merger-related and other charges		$ 760,000		$ 14,800,000
FinTrust | Merger-related costs
Business Acquisition [Line Items]
Merger-related and other charges			$ 262,000		$ 515,000

XML

Acquisitions - Acquisition date fair value of purchased assets and assumed liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Liabilities
Goodwill		$ 751,174	$ 751,174		$ 452,007	$ 381,972	$ 367,809	$ 367,809
Reliant
Assets
Cash and cash equivalents	$ 62,867
Debt securities	249,107
Loans held for sale	116,406
Loans held for investment	2,320,737
Premises and equipment	35,631
Bank-owned life insurance	78,170
Accrued interest receivable	12,027
Net deferred tax asset	5,793
Core deposit intangible	14,500
Other assets	59,768
Total assets acquired	2,955,006
Liabilities
Deposits	2,504,823
Short-term borrowings	27,000
Long-term debt	76,730			$ 76,700
Other liabilities	48,620
Total liabilities assumed	2,657,173
Total identifiable net assets	297,833
Cash	624
Common stock issued in acquisition	595,581
Options converted	795
Total fair value of consideration transferred	597,000
Goodwill	$ 299,167
Common stock issued (in shares)	16,571,545

XML

Acquisitions - Acquired loan portfolio at acquisition (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 01, 2022	Sep. 30, 2022
PCD loans:
ACL at acquisition		$ (12,737)
Reliant
Non-PCD loans:
Fair value	$ 2,078,306
Gross contractual amounts receivable	2,355,205
Estimate of contractual cash flows not expected to be collected	25,990
Reliant | Purchased loans
PCD loans:
Par value	258,462
ACL at acquisition	(12,737)
Non-credit discount	(3,294)
Purchase price	$ 242,431

XML

Acquisitions - Pro forma information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Supplemental consolidated pro forma revenue	$ 216,171	$ 232,667	$ 618,636	$ 672,405
Supplemental consolidated pro forma net income (loss)	81,681	86,576	219,010	233,053
Reliant
Business Acquisition [Line Items]
Actual revenue included since acquisition date	29,618		72,685
Actual net income (loss) included since acquisition date	$ 16,516		$ 32,931
FinTrust
Business Acquisition [Line Items]
Actual revenue included since acquisition date		2,017		2,017
Actual net income (loss) included since acquisition date		$ (49)		$ (49)

XML

Acquisitions - Announced Acquisition of Progress (Details) $ in Thousands	Sep. 30, 2022 USD ($) branch	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Assets	$ 23,687,855	$ 20,946,771
Deposits	$ 20,321,142	$ 18,241,179
Progress
Business Acquisition [Line Items]
Number of banking branches | branch	14
Assets	$ 1,740,000
Total loans	1,410,000
Deposits	$ 1,500,000

XML

Investment Securities - Narrative (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Transfers of AFS debt securities to HTM	$ 0	$ 1,288,982,000	$ 0
Unrealized losses associated with AFS debt securities transferred to HTM		$ 87,400,000
Debt Securities, Available For Sale And Held To Maturity [Line Items]
Number of AFS debt securities in unrealized loss position | security	755	755
Number of HTM debt securities in unrealized loss position | security	326	326
Allowance for credit losses, HTM portfolio	$ 0	$ 0		$ 0
Allowance for credit losses, AFS portfolio	0	0		0
Pledged securities | Deposits
Debt Securities, Available For Sale And Held To Maturity [Line Items]
Securities	$ 1,960,000,000	$ 1,960,000,000		$ 1,460,000,000

XML

Investment Securities - Amortized cost, gross unrealized gains and losses, and fair value of HTM debt securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
HTM debt securities:
Amortized Cost	$ 2,676,405	$ 1,156,098
Gross Unrealized Gains	59	10,509
Gross Unrealized Losses	435,304	17,803
Fair Value	2,241,160	1,148,804
U.S. Treasuries
HTM debt securities:
Amortized Cost	19,826	19,803
Gross Unrealized Gains	0	20
Gross Unrealized Losses	2,573	0
Fair Value	17,253	19,823
U.S. Government agencies & GSEs
HTM debt securities:
Amortized Cost	99,620	70,180
Gross Unrealized Gains	0	0
Gross Unrealized Losses	18,275	1,121
Fair Value	81,345	69,059
State and political subdivisions
HTM debt securities:
Amortized Cost	301,520	257,688
Gross Unrealized Gains	45	4,341
Gross Unrealized Losses	70,180	4,080
Fair Value	231,385	257,949
Residential MBS, Agency & GSEs
HTM debt securities:
Amortized Cost	1,519,094	381,641
Gross Unrealized Gains	14	2,021
Gross Unrealized Losses	227,307	3,687
Fair Value	1,291,801	379,975
Commercial MBS, Agency & GSEs
HTM debt securities:
Amortized Cost	721,345	411,786
Gross Unrealized Gains	0	4,106
Gross Unrealized Losses	114,360	8,915
Fair Value	606,985	406,977
Supranational entities
HTM debt securities:
Amortized Cost	15,000	15,000
Gross Unrealized Gains	0	21
Gross Unrealized Losses	2,609	0
Fair Value	$ 12,391	$ 15,021

XML

Investment Securities - Amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
AFS debt securities:
Amortized Cost	$ 4,221,066	$ 4,516,529
Gross Unrealized Gains	1,314	36,593
Gross Unrealized Losses	359,494	56,298
Fair Value	3,862,886	4,496,824
U.S. Treasuries
AFS debt securities:
Amortized Cost	194,301	218,027
Gross Unrealized Gains	0	1,661
Gross Unrealized Losses	15,828	2,168
Fair Value	178,473	217,520
U.S. Government agencies & GSEs
AFS debt securities:
Amortized Cost	272,492	189,855
Gross Unrealized Gains	655	605
Gross Unrealized Losses	17,121	3,428
Fair Value	256,026	187,032
State and political subdivisions
AFS debt securities:
Amortized Cost	348,099	263,269
Gross Unrealized Gains	0	15,237
Gross Unrealized Losses	32,597	2,662
Fair Value	315,502	275,844
Residential MBS, Agency & GSEs
AFS debt securities:
Amortized Cost	1,658,924	2,079,700
Gross Unrealized Gains	6	9,785
Gross Unrealized Losses	161,282	28,521
Fair Value	1,497,648	2,060,964
Residential MBS, Non-agency
AFS debt securities:
Amortized Cost	382,185	81,925
Gross Unrealized Gains	0	2,249
Gross Unrealized Losses	22,943	4
Fair Value	359,242	84,170
Commercial MBS, Agency & GSEs
AFS debt securities:
Amortized Cost	747,238	870,563
Gross Unrealized Gains	584	2,974
Gross Unrealized Losses	74,751	16,156
Fair Value	673,071	857,381
Commercial MBS, Non-agency
AFS debt securities:
Amortized Cost	31,676	15,202
Gross Unrealized Gains	0	1,268
Gross Unrealized Losses	1,144	0
Fair Value	30,532	16,470
Corporate bonds
AFS debt securities:
Amortized Cost	252,486	194,164
Gross Unrealized Gains	59	814
Gross Unrealized Losses	26,635	1,812
Fair Value	225,910	193,166
Asset-backed securities
AFS debt securities:
Amortized Cost	333,665	603,824
Gross Unrealized Gains	10	2,000
Gross Unrealized Losses	7,193	1,547
Fair Value	$ 326,482	$ 604,277

XML

Investment Securities - HTM debt securities in unrealized loss position (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 1,142,555	$ 798,967
Unrealized Loss, Less than 12 Months	194,961	16,705
Fair Value, 12 Months or More	1,089,533	23,791
Unrealized Loss, 12 Months or More	240,343	1,098
Fair Value, Total	2,232,088	822,758
Unrealized Loss, Total	435,304	17,803
U.S. Treasuries
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	17,253
Unrealized Loss, Less than 12 Months	2,573
Fair Value, 12 Months or More	0
Unrealized Loss, 12 Months or More	0
Fair Value, Total	17,253
Unrealized Loss, Total	2,573
U.S. Government agencies & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	37,829	64,658
Unrealized Loss, Less than 12 Months	8,757	888
Fair Value, 12 Months or More	43,516	4,401
Unrealized Loss, 12 Months or More	9,518	233
Fair Value, Total	81,345	69,059
Unrealized Loss, Total	18,275	1,121
State and political subdivisions
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	127,575	131,128
Unrealized Loss, Less than 12 Months	32,375	3,590
Fair Value, 12 Months or More	96,164	9,006
Unrealized Loss, 12 Months or More	37,805	490
Fair Value, Total	223,739	140,134
Unrealized Loss, Total	70,180	4,080
Residential MBS, Agency & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	650,062	289,132
Unrealized Loss, Less than 12 Months	105,555	3,687
Fair Value, 12 Months or More	640,314	0
Unrealized Loss, 12 Months or More	121,752	0
Fair Value, Total	1,290,376	289,132
Unrealized Loss, Total	227,307	3,687
Commercial MBS, Agency & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	297,445	314,049
Unrealized Loss, Less than 12 Months	43,092	8,540
Fair Value, 12 Months or More	309,539	10,384
Unrealized Loss, 12 Months or More	71,268	375
Fair Value, Total	606,984	324,433
Unrealized Loss, Total	114,360	$ 8,915
Supranational entities
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	12,391
Unrealized Loss, Less than 12 Months	2,609
Fair Value, 12 Months or More	0
Unrealized Loss, 12 Months or More	0
Fair Value, Total	12,391
Unrealized Loss, Total	$ 2,609

XML

Investment Securities - AFS debt securities in unrealized loss position (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 2,795,951	$ 2,787,798
Unrealized Loss, Less than 12 Months	210,003	49,598
Fair Value, 12 Months or More	923,522	164,323
Unrealized Loss, 12 Months or More	149,491	6,700
Fair Value, Total	3,719,473	2,952,121
Unrealized Loss, Total	359,494	56,298
U.S. Treasuries
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	92,422	111,606
Unrealized Loss, Less than 12 Months	2,882	2,168
Fair Value, 12 Months or More	86,051	0
Unrealized Loss, 12 Months or More	12,946	0
Fair Value, Total	178,473	111,606
Unrealized Loss, Total	15,828	2,168
U.S. Government agencies & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	117,567	132,893
Unrealized Loss, Less than 12 Months	4,819	2,591
Fair Value, 12 Months or More	60,251	20,093
Unrealized Loss, 12 Months or More	12,302	837
Fair Value, Total	177,818	152,986
Unrealized Loss, Total	17,121	3,428
State and political subdivisions
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	257,976	69,302
Unrealized Loss, Less than 12 Months	17,220	2,581
Fair Value, 12 Months or More	55,291	3,148
Unrealized Loss, 12 Months or More	15,377	81
Fair Value, Total	313,267	72,450
Unrealized Loss, Total	32,597	2,662
Residential MBS, Agency & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	1,213,430	1,534,744
Unrealized Loss, Less than 12 Months	119,863	25,799
Fair Value, 12 Months or More	282,679	74,481
Unrealized Loss, 12 Months or More	41,419	2,722
Fair Value, Total	1,496,109	1,609,225
Unrealized Loss, Total	161,282	28,521
Residential MBS, Non-agency
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	359,242	12,608
Unrealized Loss, Less than 12 Months	22,943	4
Fair Value, 12 Months or More	0	0
Unrealized Loss, 12 Months or More	0	0
Fair Value, Total	359,242	12,608
Unrealized Loss, Total	22,943	4
Commercial MBS, Agency & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	367,162	582,235
Unrealized Loss, Less than 12 Months	19,548	13,098
Fair Value, 12 Months or More	278,170	66,014
Unrealized Loss, 12 Months or More	55,203	3,058
Fair Value, Total	645,332	648,249
Unrealized Loss, Total	74,751	16,156
Commercial MBS, Non-agency
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	30,532
Unrealized Loss, Less than 12 Months	1,144
Fair Value, 12 Months or More	0
Unrealized Loss, 12 Months or More	0
Fair Value, Total	30,532
Unrealized Loss, Total	1,144
Corporate bonds
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	170,581	149,246
Unrealized Loss, Less than 12 Months	18,944	1,811
Fair Value, 12 Months or More	52,727	16
Unrealized Loss, 12 Months or More	7,691	1
Fair Value, Total	223,308	149,262
Unrealized Loss, Total	26,635	1,812
Asset-backed securities
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	187,039	195,164
Unrealized Loss, Less than 12 Months	2,640	1,546
Fair Value, 12 Months or More	108,353	571
Unrealized Loss, 12 Months or More	4,553	1
Fair Value, Total	295,392	195,735
Unrealized Loss, Total	$ 7,193	$ 1,547

XML

Investment Securities - Accrued interest receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
HTM
Accrued interest receivable
Accrued interest receivable	$ 6,135	$ 3,596
AFS
Accrued interest receivable
Accrued interest receivable	$ 13,232	$ 9,868

XML

Investment Securities - Amortized cost and fair value of AFS and HTM debt securities by contractual maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	$ 98,024
AFS, Amortized Cost, 1 to 5 years	349,011
AFS, Amortized Cost, 5 to 10 years	300,696
AFS, Amortized Cost, More than 10 years	319,647
Amortized Cost	4,221,066	$ 4,516,529
AFS, Fair Value
AFS, Fair Value, Within 1 year	97,108
AFS, Fair Value, 1 to 5 years	315,561
AFS, Fair Value, 5 to 10 years	264,886
AFS, Fair Value, More than 10 years	298,356
Fair Value	3,862,886	4,496,824
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	5,200
HTM, Amortized Cost, 1 to 5 years	14,207
HTM, Amortized Cost, 5 to 10 years	119,934
HTM, Amortized Cost, More than 10 years	296,625
Amortized Cost	2,676,405	1,156,098
HTM, Fair Value
HTM, Fair Value, Within 1 year	5,201
HTM, Fair Value, 1 to 5 years	14,067
HTM, Fair Value, 5 to 10 years	101,465
HTM, Fair Value, More than 10 years	221,641
Fair value	2,241,160	1,148,804
U.S. Treasuries
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	80,116
AFS, Amortized Cost, 1 to 5 years	99,248
AFS, Amortized Cost, 5 to 10 years	14,937
Amortized Cost	194,301	218,027
AFS, Fair Value
AFS, Fair Value, Within 1 year	79,266
AFS, Fair Value, 1 to 5 years	86,295
AFS, Fair Value, 5 to 10 years	12,912
Fair Value	178,473	217,520
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	0
HTM, Amortized Cost, 1 to 5 years	0
HTM, Amortized Cost, 5 to 10 years	19,826
Amortized Cost	19,826	19,803
HTM, Fair Value
HTM, Fair Value, Within 1 year	0
HTM, Fair Value, 1 to 5 years	0
HTM, Fair Value, 5 to 10 years	17,253
Fair value	17,253	19,823
U.S. Government agencies & GSEs
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	174
AFS, Amortized Cost, 1 to 5 years	38,672
AFS, Amortized Cost, 5 to 10 years	77,779
AFS, Amortized Cost, More than 10 years	155,867
Amortized Cost	272,492	189,855
AFS, Fair Value
AFS, Fair Value, Within 1 year	172
AFS, Fair Value, 1 to 5 years	34,652
AFS, Fair Value, 5 to 10 years	69,039
AFS, Fair Value, More than 10 years	152,163
Fair Value	256,026	187,032
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	0
HTM, Amortized Cost, 1 to 5 years	0
HTM, Amortized Cost, 5 to 10 years	53,505
HTM, Amortized Cost, More than 10 years	46,115
Amortized Cost	99,620	70,180
HTM, Fair Value
HTM, Fair Value, Within 1 year	0
HTM, Fair Value, 1 to 5 years	0
HTM, Fair Value, 5 to 10 years	45,109
HTM, Fair Value, More than 10 years	36,236
Fair value	81,345	69,059
State and political subdivisions
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	15,002
AFS, Amortized Cost, 1 to 5 years	46,320
AFS, Amortized Cost, 5 to 10 years	123,790
AFS, Amortized Cost, More than 10 years	162,987
Amortized Cost	348,099	263,269
AFS, Fair Value
AFS, Fair Value, Within 1 year	14,990
AFS, Fair Value, 1 to 5 years	44,682
AFS, Fair Value, 5 to 10 years	110,478
AFS, Fair Value, More than 10 years	145,352
Fair Value	315,502	275,844
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	5,200
HTM, Amortized Cost, 1 to 5 years	14,207
HTM, Amortized Cost, 5 to 10 years	31,603
HTM, Amortized Cost, More than 10 years	250,510
Amortized Cost	301,520	257,688
HTM, Fair Value
HTM, Fair Value, Within 1 year	5,201
HTM, Fair Value, 1 to 5 years	14,067
HTM, Fair Value, 5 to 10 years	26,712
HTM, Fair Value, More than 10 years	185,405
Fair value	231,385	257,949
Corporate bonds
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	2,732
AFS, Amortized Cost, 1 to 5 years	164,771
AFS, Amortized Cost, 5 to 10 years	84,190
AFS, Amortized Cost, More than 10 years	793
Amortized Cost	252,486	194,164
AFS, Fair Value
AFS, Fair Value, Within 1 year	2,680
AFS, Fair Value, 1 to 5 years	149,932
AFS, Fair Value, 5 to 10 years	72,457
AFS, Fair Value, More than 10 years	841
Fair Value	225,910	193,166
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	0
HTM, Amortized Cost, 1 to 5 years	0
HTM, Amortized Cost, 5 to 10 years	0
HTM, Amortized Cost, More than 10 years	0
HTM, Fair Value
HTM, Fair Value, Within 1 year	0
HTM, Fair Value, 1 to 5 years	0
HTM, Fair Value, 5 to 10 years	0
HTM, Fair Value, More than 10 years	0
Supranational entities
AFS, Amortized Cost
AFS, Amortized Cost, 5 to 10 years	0
AFS, Fair Value
AFS, Fair Value, 5 to 10 years	0
HTM, Amortized Cost
HTM, Amortized Cost, 5 to 10 years	15,000
Amortized Cost	15,000	15,000
HTM, Fair Value
HTM, Fair Value, 5 to 10 years	12,391
Fair value	12,391	15,021
Asset-backed securities
AFS, Amortized Cost
AFS, Amortized Cost, Not due at single maturity	333,665
Amortized Cost	333,665	603,824
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	326,482
Fair Value	326,482	$ 604,277
HTM, Amortized Cost
HTM, Amortized Cost, Not due at single maturity	0
HTM, Fair Value
HTM, Fair Value, Not due at single maturity	0
Residential MBS
AFS, Amortized Cost
AFS, Amortized Cost, Not due at single maturity	2,041,109
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	1,856,890
HTM, Amortized Cost
HTM, Amortized Cost, Not due at single maturity	1,519,094
HTM, Fair Value
HTM, Fair Value, Not due at single maturity	1,291,801
Commercial MBS
AFS, Amortized Cost
AFS, Amortized Cost, Not due at single maturity	778,914
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	703,603
HTM, Amortized Cost
HTM, Amortized Cost, Not due at single maturity	721,345
HTM, Fair Value
HTM, Fair Value, Not due at single maturity	$ 606,985

XML

Investment Securities - AFS sales activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 24,901	$ 281,521	$ 103,012
Gross realized gains	0	0	1,009	641
Gross realized losses	0	0	(4,697)	(600)
Securities gains (losses), net	0	0	(3,688)	41
Income tax expense (benefit) attributable to sales	$ 0	$ 0	$ (979)	$ 14

XML

Loans and Leases and Allowance for Credit Losses - Major classifications of loan portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Classifications of loans
Total loans	$ 14,882,484		$ 11,760,346
Less allowance for credit losses - loans	(148,502)	$ (136,925)	(102,532)	$ (99,620)	$ (111,616)	$ (137,010)
Loans and leases, net	14,733,982		11,657,814
Loans receivable
Classifications of loans
Total loans	14,882,484		11,760,346
Loans receivable | Commercial
Classifications of loans
Total loans	11,031,784		8,930,556
Loans receivable | Commercial | Owner occupied commercial real estate
Classifications of loans
Total loans	2,700,345		2,321,685
Less allowance for credit losses - loans	(19,056)	(16,774)	(14,282)	(14,144)	(17,292)	(20,673)
Loans receivable | Commercial | Income producing commercial real estate
Classifications of loans
Total loans	3,298,847		2,600,858
Less allowance for credit losses - loans	(31,610)	(33,284)	(24,156)	(23,391)	(30,967)	(41,737)
Loans receivable | Commercial | Commercial & industrial
Classifications of loans
Total loans	2,237,591		1,910,162
Less allowance for credit losses - loans	(20,918)	(18,267)	(16,592)	(16,243)	(16,414)	(22,019)
Loans receivable | Commercial | PPP loans included in commercial & industrial
Classifications of loans
Total loans	2,440		88,300
Loans receivable | Commercial | Construction
Classifications of loans
Total loans	1,514,145		1,014,830
Less allowance for credit losses - loans	(17,954)	(16,062)	(9,956)	(8,172)	(9,180)	(10,952)
Loans receivable | Commercial | Equipment financing
Classifications of loans
Total loans	1,280,856		1,083,021
Less allowance for credit losses - loans	(20,565)	(18,409)	(16,290)	(17,300)	(18,100)	(16,820)
Loans receivable | Residential | Construction
Classifications of loans
Total loans	422,737		359,815
Less allowance for credit losses - loans	(2,304)	(2,086)	(1,847)	(1,936)	(1,918)	(764)
Loans receivable | Residential | Residential mortgage
Classifications of loans
Total loans	2,149,490		1,637,885
Less allowance for credit losses - loans	(19,335)	(17,035)	(12,390)	(11,473)	(10,965)	(15,341)
Loans receivable | Residential | HELOC
Classifications of loans
Total loans	832,140		694,034
Less allowance for credit losses - loans	(8,473)	(7,487)	(6,568)	(6,419)	(6,357)	(8,417)
Loans receivable | Residential | Manufactured housing
Classifications of loans
Total loans	300,874		0
Less allowance for credit losses - loans	(7,352)	(6,614)	0	0	0	0
Loans receivable | Consumer
Classifications of loans
Total loans	145,459		138,056
Less allowance for credit losses - loans	$ (935)	$ (907)	$ (451)	$ (542)	$ (423)	$ (287)

XML

Loans and Leases and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net investment in leases	$ 44,013	$ 37,728
TDRs	42,900	52,400
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 43,100	$ 28,500

XML

Loans and Leases and Allowance for Credit Losses - Loans sold (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	$ 41,962	$ 32,757	$ 153,401	$ 96,372
Guaranteed portion of SBA/USDA loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	20,405	13,484	87,867	57,132
Equipment financing receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	$ 21,557	$ 19,273	$ 65,534	$ 39,240

XML

Loans and Leases and Allowance for Credit Losses - Components of net investment in leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Net Investment in Leases
Minimum future lease payments receivable	$ 47,177	$ 39,962
Estimated residual value of leased equipment	3,046	3,216
Initial direct costs	744	669
Security deposits	(472)	(687)
Unearned income	(6,482)	(5,432)
Net investment in leases	$ 44,013	$ 37,728

XML

Loans and Leases and Allowance for Credit Losses - Minimum future lease payments expected to be received from equipment financing lease contracts (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Minimum future lease payments expected to be received
Remainder of 2022	$ 4,521
2023	16,041
2024	11,714
2025	8,237
2026	4,891
Thereafter	1,773
Total	$ 47,177

XML

Loans and Leases and Allowance for Credit Losses - Loans by aging category and accrual status (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total loans	$ 14,882,484	$ 11,760,346
Loans receivable
Financing Receivable, Past Due [Line Items]
Total loans	14,882,484	11,760,346
Nonaccrual Loans	33,879	32,812
Loans receivable | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	14,828,421	11,720,062
Loans receivable | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	16,519	5,750
Loans receivable | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	3,637	1,722
Loans receivable | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	28	0
Loans receivable | Commercial
Financing Receivable, Past Due [Line Items]
Total loans	11,031,784	8,930,556
Nonaccrual Loans	17,996	17,815
Loans receivable | Commercial | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	11,002,210	8,909,189
Loans receivable | Commercial | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	9,519	2,172
Loans receivable | Commercial | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	2,035	1,380
Loans receivable | Commercial | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	24	0
Loans receivable | Commercial | Owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	2,700,345	2,321,685
Nonaccrual Loans	877	2,714
Loans receivable | Commercial | Owner occupied commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,696,495	2,318,944
Loans receivable | Commercial | Owner occupied commercial real estate | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	2,597	27
Loans receivable | Commercial | Owner occupied commercial real estate | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	376	0
Loans receivable | Commercial | Owner occupied commercial real estate | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Commercial | Income producing commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	3,298,847	2,600,858
Nonaccrual Loans	2,663	7,588
Loans receivable | Commercial | Income producing commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,292,966	2,593,124
Loans receivable | Commercial | Income producing commercial real estate | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	3,170	146
Loans receivable | Commercial | Income producing commercial real estate | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	48	0
Loans receivable | Commercial | Income producing commercial real estate | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Commercial | Commercial & industrial
Financing Receivable, Past Due [Line Items]
Total loans	2,237,591	1,910,162
Nonaccrual Loans	11,108	5,429
Loans receivable | Commercial | Commercial & industrial | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,224,863	1,903,730
Loans receivable | Commercial | Commercial & industrial | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,383	584
Loans receivable | Commercial | Commercial & industrial | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	213	419
Loans receivable | Commercial | Commercial & industrial | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	24	0
Loans receivable | Commercial | Construction
Financing Receivable, Past Due [Line Items]
Total loans	1,514,145	1,014,830
Nonaccrual Loans	150	343
Loans receivable | Commercial | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	1,513,544	1,014,211
Loans receivable | Commercial | Construction | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	451	0
Loans receivable | Commercial | Construction | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	276
Loans receivable | Commercial | Construction | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Commercial | Equipment financing
Financing Receivable, Past Due [Line Items]
Total loans	1,280,856	1,083,021
Nonaccrual Loans	3,198	1,741
Loans receivable | Commercial | Equipment financing | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	1,274,342	1,079,180
Loans receivable | Commercial | Equipment financing | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,918	1,415
Loans receivable | Commercial | Equipment financing | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,398	685
Loans receivable | Commercial | Equipment financing | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Construction
Financing Receivable, Past Due [Line Items]
Total loans	422,737	359,815
Nonaccrual Loans	104	420
Loans receivable | Residential | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	422,274	358,741
Loans receivable | Residential | Construction | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	92	654
Loans receivable | Residential | Construction | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	267	0
Loans receivable | Residential | Construction | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	2,149,490	1,637,885
Nonaccrual Loans	10,424	13,313
Loans receivable | Residential | Residential mortgage | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,136,977	1,622,754
Loans receivable | Residential | Residential mortgage | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,703	1,583
Loans receivable | Residential | Residential mortgage | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	386	235
Loans receivable | Residential | Residential mortgage | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | HELOC
Financing Receivable, Past Due [Line Items]
Total loans	832,140	694,034
Nonaccrual Loans	1,151	1,212
Loans receivable | Residential | HELOC | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	829,400	691,814
Loans receivable | Residential | HELOC | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,393	920
Loans receivable | Residential | HELOC | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	196	88
Loans receivable | Residential | HELOC | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Manufactured housing
Financing Receivable, Past Due [Line Items]
Total loans	300,874	0
Nonaccrual Loans	4,187	0
Loans receivable | Residential | Manufactured housing | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	292,394
Loans receivable | Residential | Manufactured housing | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	3,589
Loans receivable | Residential | Manufactured housing | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	704
Loans receivable | Residential | Manufactured housing | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	0
Loans receivable | Consumer
Financing Receivable, Past Due [Line Items]
Total loans	145,459	138,056
Nonaccrual Loans	17	52
Loans receivable | Consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	145,166	137,564
Loans receivable | Consumer | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	223	421
Loans receivable | Consumer | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	49	19
Loans receivable | Consumer | Loans Past Due, over 90 Days
Financing Receivable, Past Due [Line Items]
Total loans	$ 4	$ 0

XML

Loans and Leases and Allowance for Credit Losses - Nonaccrual loans by loan class (Details) - Loans receivable - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Nonaccrual loans
Nonaccrual loans with no allowance	$ 15,964	$ 16,360
Nonaccrual loans with an allowance	17,915	16,452
Nonaccrual loans	33,879	32,812
Commercial
Nonaccrual loans
Nonaccrual loans with no allowance	13,357	12,729
Nonaccrual loans with an allowance	4,639	5,086
Nonaccrual loans	17,996	17,815
Commercial | Owner occupied commercial real estate
Nonaccrual loans
Nonaccrual loans with no allowance	537	2,141
Nonaccrual loans with an allowance	340	573
Nonaccrual loans	877	2,714
Commercial | Income producing commercial real estate
Nonaccrual loans
Nonaccrual loans with no allowance	2,263	6,873
Nonaccrual loans with an allowance	400	715
Nonaccrual loans	2,663	7,588
Commercial | Commercial & industrial
Nonaccrual loans
Nonaccrual loans with no allowance	10,061	3,715
Nonaccrual loans with an allowance	1,047	1,714
Nonaccrual loans	11,108	5,429
Commercial | Construction
Nonaccrual loans
Nonaccrual loans with no allowance	47	0
Nonaccrual loans with an allowance	103	343
Nonaccrual loans	150	343
Commercial | Equipment financing
Nonaccrual loans
Nonaccrual loans with no allowance	449	0
Nonaccrual loans with an allowance	2,749	1,741
Nonaccrual loans	3,198	1,741
Residential | Construction
Nonaccrual loans
Nonaccrual loans with no allowance	67	280
Nonaccrual loans with an allowance	37	140
Nonaccrual loans	104	420
Residential | Residential mortgage
Nonaccrual loans
Nonaccrual loans with no allowance	2,239	3,126
Nonaccrual loans with an allowance	8,185	10,187
Nonaccrual loans	10,424	13,313
Residential | HELOC
Nonaccrual loans
Nonaccrual loans with no allowance	300	219
Nonaccrual loans with an allowance	851	993
Nonaccrual loans	1,151	1,212
Residential | Manufactured housing
Nonaccrual loans
Nonaccrual loans with no allowance	0	0
Nonaccrual loans with an allowance	4,187	0
Nonaccrual loans	4,187	0
Consumer
Nonaccrual loans
Nonaccrual loans with no allowance	1	6
Nonaccrual loans with an allowance	16	46
Nonaccrual loans	$ 17	$ 52

XML

Loans and Leases and Allowance for Credit Losses - Risk category of term loans by vintage year (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	$ 3,756,156	$ 4,181,120
Originated in prior year	3,896,776	2,679,991
Originated two years prior	2,553,622	1,302,346
Originated three years prior	1,087,346	785,543
Originated four years prior	641,666	529,286
Originated five or more years prior	1,076,504	869,486
Revolvers	1,802,104	1,352,903
Revolvers converted to term loans	68,310	59,671
Total loans	14,882,484	11,760,346
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	3,637,701	4,056,001
Originated in prior year	3,831,285	2,613,439
Originated two years prior	2,486,035	1,230,851
Originated three years prior	1,021,245	686,372
Originated four years prior	575,987	467,977
Originated five or more years prior	1,014,813	805,770
Revolvers	1,748,209	1,345,755
Revolvers converted to term loans	61,447	54,067
Total loans	14,376,722	11,260,232
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	69,487	87,231
Originated in prior year	50,265	48,922
Originated two years prior	56,653	54,403
Originated three years prior	43,857	49,742
Originated four years prior	32,269	36,461
Originated five or more years prior	18,761	24,876
Revolvers	37,235	2,490
Revolvers converted to term loans	3,261	286
Total loans	311,788	304,411
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	48,968	37,888
Originated in prior year	15,226	17,630
Originated two years prior	10,934	17,092
Originated three years prior	22,244	49,429
Originated four years prior	33,410	24,848
Originated five or more years prior	42,930	38,840
Revolvers	16,660	4,658
Revolvers converted to term loans	3,602	5,318
Total loans	193,974	195,703
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	2,621,763	2,892,353
Originated in prior year	2,832,709	2,197,828
Originated two years prior	2,071,838	1,109,201
Originated three years prior	883,715	614,611
Originated four years prior	482,005	391,842
Originated five or more years prior	705,227	573,932
Revolvers	914,282	636,889
Revolvers converted to term loans	35,341	35,014
Total loans	10,546,880	8,451,670
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	69,487	87,231
Originated in prior year	50,265	48,922
Originated two years prior	56,653	54,403
Originated three years prior	43,857	49,742
Originated four years prior	32,269	36,461
Originated five or more years prior	18,761	24,876
Revolvers	37,235	2,490
Revolvers converted to term loans	3,261	286
Total loans	311,788	304,411
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	47,141	34,105
Originated in prior year	13,352	16,029
Originated two years prior	8,819	14,227
Originated three years prior	19,670	46,123
Originated four years prior	29,938	23,621
Originated five or more years prior	35,766	33,740
Revolvers	16,636	4,326
Revolvers converted to term loans	1,794	2,304
Total loans	173,116	174,475
Commercial | Owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	537,628	643,151
Originated in prior year	690,355	674,124
Originated two years prior	630,238	278,702
Originated three years prior	217,689	153,233
Originated four years prior	132,341	139,584
Originated five or more years prior	297,665	267,460
Revolvers	107,380	68,354
Revolvers converted to term loans	5,948	17,150
Total loans	2,619,244	2,241,758
Commercial | Owner occupied commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	6,540	7,772
Originated in prior year	7,663	2,979
Originated two years prior	5,262	16,639
Originated three years prior	9,585	4,374
Originated four years prior	4,217	6,007
Originated five or more years prior	5,164	2,641
Revolvers	3,065	248
Revolvers converted to term loans	2,964	286
Total loans	44,460	40,946
Commercial | Owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	6,801	11,987
Originated in prior year	529	1,049
Originated two years prior	4,016	4,216
Originated three years prior	8,654	3,712
Originated four years prior	1,210	5,829
Originated five or more years prior	14,184	11,088
Revolvers	210	0
Revolvers converted to term loans	1,037	1,100
Total loans	36,641	38,981
Commercial | Income producing commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	659,896	668,322
Originated in prior year	810,374	678,487
Originated two years prior	770,008	333,911
Originated three years prior	301,271	221,218
Originated four years prior	178,480	165,563
Originated five or more years prior	302,937	219,459
Revolvers	43,144	41,157
Revolvers converted to term loans	9,127	11,830
Total loans	3,075,237	2,339,947
Commercial | Income producing commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	46,138	64,139
Originated in prior year	10,285	27,875
Originated two years prior	45,578	21,875
Originated three years prior	20,106	22,292
Originated four years prior	21,798	18,415
Originated five or more years prior	13,318	21,880
Revolvers	1	0
Revolvers converted to term loans	0	0
Total loans	157,224	176,476
Commercial | Income producing commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	34,352	15,485
Originated in prior year	1,779	12,618
Originated two years prior	1,368	3,779
Originated three years prior	4,621	29,212
Originated four years prior	13,292	6,726
Originated five or more years prior	10,519	16,531
Revolvers	391	0
Revolvers converted to term loans	64	84
Total loans	66,386	84,435
Commercial | Commercial & industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	391,665	638,567
Originated in prior year	442,865	270,150
Originated two years prior	199,960	178,944
Originated three years prior	142,415	136,281
Originated four years prior	126,773	50,567
Originated five or more years prior	80,396	72,904
Revolvers	691,597	514,750
Revolvers converted to term loans	18,923	4,361
Total loans	2,094,594	1,866,524
Commercial | Commercial & industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	16,279	1,037
Originated in prior year	32,282	1,831
Originated two years prior	5,751	2,740
Originated three years prior	847	597
Originated four years prior	1,337	273
Originated five or more years prior	250	303
Revolvers	34,169	2,242
Revolvers converted to term loans	297	0
Total loans	91,212	9,023
Commercial | Commercial & industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	5,194	2,741
Originated in prior year	9,958	1,615
Originated two years prior	2,247	5,284
Originated three years prior	5,696	12,685
Originated four years prior	10,935	1,232
Originated five or more years prior	1,273	5,863
Revolvers	16,035	4,326
Revolvers converted to term loans	447	869
Total loans	51,785	34,615
Commercial | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	497,066	378,695
Originated in prior year	478,007	303,154
Originated two years prior	284,335	149,740
Originated three years prior	113,523	40,625
Originated four years prior	13,002	22,983
Originated five or more years prior	21,633	13,206
Revolvers	72,161	12,628
Revolvers converted to term loans	1,343	1,673
Total loans	1,481,070	922,704
Commercial | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	530	14,283
Originated in prior year	35	16,237
Originated two years prior	62	13,149
Originated three years prior	13,319	22,479
Originated four years prior	4,917	11,766
Originated five or more years prior	29	52
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	18,892	77,966
Commercial | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	148	3,464
Originated in prior year	42	157
Originated two years prior	47	272
Originated three years prior	3	11
Originated four years prior	3,925	9,750
Originated five or more years prior	9,772	255
Revolvers	0	0
Revolvers converted to term loans	246	251
Total loans	14,183	14,160
Commercial | Equipment financing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	535,508	563,618
Originated in prior year	411,108	271,913
Originated two years prior	187,297	167,904
Originated three years prior	108,817	63,254
Originated four years prior	31,409	13,145
Originated five or more years prior	2,596	903
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	1,276,735	1,080,737
Commercial | Equipment financing | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	0	0
Commercial | Equipment financing | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	646	428
Originated in prior year	1,044	590
Originated two years prior	1,141	676
Originated three years prior	696	503
Originated four years prior	576	84
Originated five or more years prior	18	3
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	4,121	2,284
Residential | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	259,062	325,111
Originated in prior year	144,816	16,301
Originated two years prior	6,233	2,802
Originated three years prior	1,895	2,278
Originated four years prior	1,637	3,144
Originated five or more years prior	8,474	9,352
Revolvers	65	0
Revolvers converted to term loans	375	33
Total loans	422,557	359,021
Residential | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	0	0
Residential | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	2	407
Originated in prior year	0	0
Originated two years prior	0	30
Originated three years prior	21	51
Originated four years prior	4	0
Originated five or more years prior	153	306
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	180	794
Residential | Residential mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	640,179	781,007
Originated in prior year	762,959	370,092
Originated two years prior	339,633	108,091
Originated three years prior	94,368	64,346
Originated four years prior	58,005	71,552
Originated five or more years prior	237,641	221,131
Revolvers	8	9
Revolvers converted to term loans	3,120	3,915
Total loans	2,135,913	1,620,143
Residential | Residential mortgage | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	0	0
Residential | Residential mortgage | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	1,401	3,339
Originated in prior year	1,167	1,585
Originated two years prior	1,361	2,813
Originated three years prior	1,861	3,229
Originated four years prior	2,483	1,205
Originated five or more years prior	5,145	4,744
Revolvers	0	0
Revolvers converted to term loans	159	827
Total loans	13,577	17,742
Residential | HELOC | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	807,985	676,545
Revolvers converted to term loans	22,482	14,994
Total loans	830,467	691,539
Residential | HELOC | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	0	0
Residential | HELOC | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	24	329
Revolvers converted to term loans	1,649	2,166
Total loans	1,673	2,495
Residential | Manufactured housing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	58,475
Originated in prior year	56,252
Originated two years prior	50,323
Originated three years prior	35,847
Originated four years prior	32,026
Originated five or more years prior	62,615
Revolvers	0
Revolvers converted to term loans	0
Total loans	295,538
Residential | Manufactured housing | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0
Originated in prior year	0
Originated two years prior	0
Originated three years prior	0
Originated four years prior	0
Originated five or more years prior	0
Revolvers	0
Revolvers converted to term loans	0
Total loans	0
Residential | Manufactured housing | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	424
Originated in prior year	672
Originated two years prior	739
Originated three years prior	690
Originated four years prior	953
Originated five or more years prior	1,858
Revolvers	0
Revolvers converted to term loans	0
Total loans	5,336
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	58,222	57,530
Originated in prior year	34,549	29,218
Originated two years prior	18,008	10,757
Originated three years prior	5,420	5,137
Originated four years prior	2,314	1,439
Originated five or more years prior	856	1,355
Revolvers	25,869	32,312
Revolvers converted to term loans	129	111
Total loans	145,367	137,859
Consumer | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	0
Originated in prior year	0	0
Originated two years prior	0	0
Originated three years prior	0	0
Originated four years prior	0	0
Originated five or more years prior	0	0
Revolvers	0	0
Revolvers converted to term loans	0	0
Total loans	0	0
Consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0	37
Originated in prior year	35	16
Originated two years prior	15	22
Originated three years prior	2	26
Originated four years prior	32	22
Originated five or more years prior	8	50
Revolvers	0	3
Revolvers converted to term loans	0	21
Total loans	$ 92	$ 197

XML

Loans and Leases and Allowance for Credit Losses - Loans modified under terms of TDR (Details) - Loans receivable $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) contract	Sep. 30, 2021 USD ($) contract	Sep. 30, 2022 USD ($) contract	Sep. 30, 2021 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	16	20	56	71
Post-Modification Amortized Cost by Type of Modification	$ 3,122	$ 1,214	$ 10,307	$ 7,084
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	3	5	13	18
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 430	$ 319	$ 894	$ 992
Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	3,122	1,214	10,301	5,284
Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 6	$ 1,800
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	12	14	41	59
Post-Modification Amortized Cost by Type of Modification	$ 2,818	$ 565	$ 8,182	$ 6,044
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	1	3	10	12
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 30	$ 96	$ 438	$ 307
Commercial | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	2,818	565	8,182	4,244
Commercial | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 1,800
Commercial | Owner occupied commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	1	1
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 112	$ 543
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 0
Commercial | Owner occupied commercial real estate | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Owner occupied commercial real estate | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	112	543
Commercial | Owner occupied commercial real estate | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
Commercial | Income producing commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	0	3
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 1,697
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 0
Commercial | Income producing commercial real estate | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Income producing commercial real estate | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Income producing commercial real estate | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 1,697
Commercial | Commercial & industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	1	3	2	7
Post-Modification Amortized Cost by Type of Modification	$ 715	$ 166	$ 1,118	$ 634
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	1
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 11
Commercial | Commercial & industrial | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Commercial & industrial | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	715	166	1,118	531
Commercial | Commercial & industrial | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 103
Commercial | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	0	1
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 309
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 0
Commercial | Construction | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Construction | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	309
Commercial | Construction | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
Commercial | Equipment financing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	11	11	38	47
Post-Modification Amortized Cost by Type of Modification	$ 2,103	$ 399	$ 6,952	$ 2,861
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	1	3	10	11
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 30	$ 96	$ 438	$ 296
Commercial | Equipment financing | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Commercial | Equipment financing | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	2,103	399	6,952	2,861
Commercial | Equipment financing | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
Residential | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	0	0
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 0
Residential | Construction | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Residential | Construction | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Residential | Construction | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
Residential | Residential mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	4	6	8	12
Post-Modification Amortized Cost by Type of Modification	$ 304	$ 649	$ 877	$ 1,040
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	2	1	3	4
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 400	$ 180	$ 456	$ 593
Residential | Residential mortgage | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Residential | Residential mortgage | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	304	649	877	1,040
Residential | Residential mortgage | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
Residential | HELOC
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	7	0
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 1,248	$ 0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	1	0	2
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 43	$ 0	$ 92
Residential | HELOC | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Residential | HELOC | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	1,242	0
Residential | HELOC | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 6	$ 0
Residential | Manufactured housing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0		0
Post-Modification Amortized Cost by Type of Modification	$ 0		$ 0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0		0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0		$ 0
Residential | Manufactured housing | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0		0
Residential | Manufactured housing | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0		0
Residential | Manufactured housing | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0		$ 0
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	0	0	0
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Number of Contracts | contract	0	0	0	0
TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted, Amortized Cost	$ 0	$ 0	$ 0	$ 0
Consumer | Rate   Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Consumer | Structure
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0	0	0	0
Consumer | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0	$ 0	$ 0	$ 0

XML

Loans and Leases and Allowance for Credit Losses - Balance and activity in the ACL by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
ACL
ACL - loans, Beginning Balance	$ 136,925	$ 111,616	$ 102,532	$ 137,010
ACL- loans, Initial ACL - PCD loans			12,737
ACL - loans, Charge-Offs	(3,824)	(2,851)	(13,031)	(12,215)
ACL - loans, Recoveries	2,690	2,300	9,988	12,425
ACL - loans, (Release) Provision	12,711	(11,445)	36,276	(37,600)
ACL - loans, Ending Balance	148,502	99,620	148,502	99,620
ACL - unfunded commitments, Beginning Balance	16,117	10,844	10,992	10,558
ACL - unfunded commitments, (Release) Provision	2,681	411	7,806	697
ACL - unfunded commitments, Ending Balance	18,798	11,255	18,798	11,255
Total ACL, Beginning Balance	153,042	122,460	113,524	147,568
Total ACL, Initial ACL - PCD loans			12,737
Total ACL, Charge-Offs	(3,824)	(2,851)	(13,031)	(12,215)
Total ACL, Recoveries	2,690	2,300	9,988	12,425
Total ACL, (Release) Provision	15,392	(11,034)	44,082	(36,903)
Total ACL, Ending Balance	167,300	110,875	167,300	110,875
Loans receivable | Commercial | Owner occupied commercial real estate
ACL
ACL - loans, Beginning Balance	16,774	17,292	14,282	20,673
ACL- loans, Initial ACL - PCD loans			266
ACL - loans, Charge-Offs	0	(443)	0	(1,503)
ACL - loans, Recoveries	90	536	1,631	932
ACL - loans, (Release) Provision	2,192	(3,241)	2,877	(5,958)
ACL - loans, Ending Balance	19,056	14,144	19,056	14,144
Loans receivable | Commercial | Income producing commercial real estate
ACL
ACL - loans, Beginning Balance	33,284	30,967	24,156	41,737
ACL- loans, Initial ACL - PCD loans			4,366
ACL - loans, Charge-Offs	(202)	(120)	(202)	(174)
ACL - loans, Recoveries	26	75	432	304
ACL - loans, (Release) Provision	(1,498)	(7,531)	2,858	(18,476)
ACL - loans, Ending Balance	31,610	23,391	31,610	23,391
Loans receivable | Commercial | Commercial & industrial
ACL
ACL - loans, Beginning Balance	18,267	16,414	16,592	22,019
ACL- loans, Initial ACL - PCD loans			2,337
ACL - loans, Charge-Offs	(373)	(320)	(4,978)	(4,017)
ACL - loans, Recoveries	1,117	411	3,095	6,855
ACL - loans, (Release) Provision	1,907	(262)	3,872	(8,614)
ACL - loans, Ending Balance	20,918	16,243	20,918	16,243
Loans receivable | Commercial | Construction
ACL
ACL - loans, Beginning Balance	16,062	9,180	9,956	10,952
ACL- loans, Initial ACL - PCD loans			2,857
ACL - loans, Charge-Offs	0	0	(41)	(224)
ACL - loans, Recoveries	(10)	123	548	618
ACL - loans, (Release) Provision	1,902	(1,131)	4,634	(3,174)
ACL - loans, Ending Balance	17,954	8,172	17,954	8,172
Loans receivable | Commercial | Equipment financing
ACL
ACL - loans, Beginning Balance	18,409	18,100	16,290	16,820
ACL- loans, Initial ACL - PCD loans			0
ACL - loans, Charge-Offs	(1,987)	(1,165)	(4,644)	(4,411)
ACL - loans, Recoveries	866	653	2,349	2,087
ACL - loans, (Release) Provision	3,277	(288)	6,570	2,804
ACL - loans, Ending Balance	20,565	17,300	20,565	17,300
Loans receivable | Residential | Construction
ACL
ACL - loans, Beginning Balance	2,086	1,918	1,847	764
ACL- loans, Initial ACL - PCD loans			1
ACL - loans, Charge-Offs	0	0	0	(10)
ACL - loans, Recoveries	109	37	208	140
ACL - loans, (Release) Provision	109	(19)	248	1,042
ACL - loans, Ending Balance	2,304	1,936	2,304	1,936
Loans receivable | Residential | Residential mortgage
ACL
ACL - loans, Beginning Balance	17,035	10,965	12,390	15,341
ACL- loans, Initial ACL - PCD loans			385
ACL - loans, Charge-Offs	0	(127)	(53)	(342)
ACL - loans, Recoveries	66	76	267	393
ACL - loans, (Release) Provision	2,234	559	6,346	(3,919)
ACL - loans, Ending Balance	19,335	11,473	19,335	11,473
Loans receivable | Residential | HELOC
ACL
ACL - loans, Beginning Balance	7,487	6,357	6,568	8,417
ACL- loans, Initial ACL - PCD loans			60
ACL - loans, Charge-Offs	(27)	(65)	(36)	(99)
ACL - loans, Recoveries	129	167	565	386
ACL - loans, (Release) Provision	884	(40)	1,316	(2,285)
ACL - loans, Ending Balance	8,473	6,419	8,473	6,419
Loans receivable | Residential | Manufactured housing
ACL
ACL - loans, Beginning Balance	6,614	0	0	0
ACL- loans, Initial ACL - PCD loans			2,438
ACL - loans, Charge-Offs	(225)	0	(533)	0
ACL - loans, Recoveries	5	0	14	0
ACL - loans, (Release) Provision	958	0	5,433	0
ACL - loans, Ending Balance	7,352	0	7,352	0
Loans receivable | Consumer
ACL
ACL - loans, Beginning Balance	907	423	451	287
ACL- loans, Initial ACL - PCD loans			27
ACL - loans, Charge-Offs	(1,010)	(611)	(2,544)	(1,435)
ACL - loans, Recoveries	292	222	879	710
ACL - loans, (Release) Provision	746	508	2,122	980
ACL - loans, Ending Balance	$ 935	$ 542	$ 935	$ 542

XML

Derivatives and Hedging Activities - Fair value of derivative financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Notional Amount	$ 2,605,096	$ 3,052,601
Derivative Asset
Total gross derivative instruments	54,344	42,480
Less: Amounts subject to master netting agreements	(230)	(694)
Less: Cash collateral received/pledged	(39,811)	(6,620)
Net amount	14,303	35,166
Derivative Liability
Total gross derivative instruments	106,135	25,145
Less: Amounts subject to master netting agreements	(230)	(694)
Less: Cash collateral received/pledged	(13,155)	(14,148)
Net amount	92,750	10,303
Derivative assets
Derivative Asset
Total gross derivative instruments	54,344	42,480
Derivative liabilities
Derivative Liability
Total gross derivative instruments	106,135	25,145
Designated as hedging instrument
Derivatives, Fair Value [Line Items]
Notional Amount	120,000	130,000
Designated as hedging instrument | Cash flow hedge of subordinated debt
Derivatives, Fair Value [Line Items]
Notional Amount	100,000	100,000
Designated as hedging instrument | Cash flow hedge of trust preferred securities
Derivatives, Fair Value [Line Items]
Notional Amount	20,000	20,000
Designated as hedging instrument | Fair value hedge of brokered time deposits
Derivatives, Fair Value [Line Items]
Notional Amount	0	10,000
Designated as hedging instrument | Derivative assets
Derivative Asset
Derivatives designated as hedging instruments	16,311	6,389
Designated as hedging instrument | Derivative assets | Cash flow hedge of subordinated debt
Derivative Asset
Cash flow hedge	16,311	6,389
Designated as hedging instrument | Derivative assets | Cash flow hedge of trust preferred securities
Derivative Asset
Cash flow hedge	0	0
Designated as hedging instrument | Derivative assets | Fair value hedge of brokered time deposits
Derivative Asset
Fair value hedge	0	0
Designated as hedging instrument | Derivative liabilities
Derivative Liability
Derivatives designated as hedging instruments	0	0
Designated as hedging instrument | Derivative liabilities | Cash flow hedge of subordinated debt
Derivative Liability
Cash flow hedge	0	0
Designated as hedging instrument | Derivative liabilities | Cash flow hedge of trust preferred securities
Derivative Liability
Cash flow hedge	0	0
Designated as hedging instrument | Derivative liabilities | Fair value hedge of brokered time deposits
Derivative Liability
Fair value hedge	0	0
Not designated as hedging instrument
Derivatives, Fair Value [Line Items]
Notional Amount	2,485,096	2,922,601
Not designated as hedging instrument | Customer derivative positions
Derivatives, Fair Value [Line Items]
Notional Amount	1,090,067	1,206,145
Not designated as hedging instrument | Dealer offsets to customer derivative positions
Derivatives, Fair Value [Line Items]
Notional Amount	1,090,067	1,230,885
Not designated as hedging instrument | Risk participations
Derivatives, Fair Value [Line Items]
Notional Amount	79,827	69,385
Not designated as hedging instrument | Mortgage banking - loan commitment
Derivatives, Fair Value [Line Items]
Notional Amount	33,265	110,897
Not designated as hedging instrument | Mortgage banking - forward sales commitment
Derivatives, Fair Value [Line Items]
Notional Amount	88,000	201,419
Not designated as hedging instrument | Bifurcated embedded derivatives
Derivatives, Fair Value [Line Items]
Notional Amount	51,935	51,935
Not designated as hedging instrument | Dealer offsets to bifurcated embedded derivatives
Derivatives, Fair Value [Line Items]
Notional Amount	51,935	51,935
Not designated as hedging instrument | Derivative assets
Derivative Asset
Derivatives not designated as hedging instruments	38,033	36,091
Not designated as hedging instrument | Derivative assets | Customer derivative positions
Derivative Asset
Derivatives not designated as hedging instruments	16	28,656
Not designated as hedging instrument | Derivative assets | Dealer offsets to customer derivative positions
Derivative Asset
Derivatives not designated as hedging instruments	24,005	974
Not designated as hedging instrument | Derivative assets | Risk participations
Derivative Asset
Derivatives not designated as hedging instruments	4	16
Not designated as hedging instrument | Derivative assets | Mortgage banking - loan commitment
Derivative Asset
Derivatives not designated as hedging instruments	290	3,450
Not designated as hedging instrument | Derivative assets | Mortgage banking - forward sales commitment
Derivative Asset
Derivatives not designated as hedging instruments	1,994	67
Not designated as hedging instrument | Derivative assets | Bifurcated embedded derivatives
Derivative Asset
Derivatives not designated as hedging instruments	11,724	2,928
Not designated as hedging instrument | Derivative assets | Dealer offsets to bifurcated embedded derivatives
Derivative Asset
Derivatives not designated as hedging instruments	0	0
Not designated as hedging instrument | Derivative liabilities
Derivative Liability
Derivatives not designated as hedging instruments	106,135	25,145
Not designated as hedging instrument | Derivative liabilities | Customer derivative positions
Derivative Liability
Derivatives not designated as hedging instruments	92,444	10,663
Not designated as hedging instrument | Derivative liabilities | Dealer offsets to customer derivative positions
Derivative Liability
Derivatives not designated as hedging instruments	0	9,232
Not designated as hedging instrument | Derivative liabilities | Risk participations
Derivative Liability
Derivatives not designated as hedging instruments	1	7
Not designated as hedging instrument | Derivative liabilities | Mortgage banking - loan commitment
Derivative Liability
Derivatives not designated as hedging instruments	155	0
Not designated as hedging instrument | Derivative liabilities | Mortgage banking - forward sales commitment
Derivative Liability
Derivatives not designated as hedging instruments	30	202
Not designated as hedging instrument | Derivative liabilities | Bifurcated embedded derivatives
Derivative Liability
Derivatives not designated as hedging instruments	0	0
Not designated as hedging instrument | Derivative liabilities | Dealer offsets to bifurcated embedded derivatives
Derivative Liability
Derivatives not designated as hedging instruments	$ 13,505	$ 5,041

XML

Derivatives and Hedging Activities - Narrative (Details) $ in Thousands	Sep. 30, 2022 USD ($) contract
Derivative Instruments [Line Items]
Gains to be reclassified from accumulated other comprehensive income into earnings over the next twelve months | $	$ 2,340
Economic hedge, not designated as hedging instrument | Interest rate swaps
Derivative Instruments [Line Items]
Number of derivative contracts | contract	3

XML

Derivatives and Hedging Activities - Effect of derivatives in hedging relationships (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments [Line Items]
Total interest expense presented in the consolidated statements of income	$ (14,113)	$ (6,636)	$ (29,855)	$ (23,547)
Fair value hedging | Interest expense
Effect of hedging relationships on interest expense:
Net income (expense) recognized	0	43	28	167
Cash flow hedging | Interest expense
Effect of hedging relationships on interest expense:
Net income (expense) recognized	(48)	(153)	(295)	(444)
Premium amortization expense excluded from assessment of hedge effectiveness	$ 119	$ 119	$ 353	$ 353

XML

Derivatives and Hedging Activities - Gains and losses recognized in income on derivatives not designated as hedging instruments (Details) - Not designated as hedging instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 1,409	$ (808)	$ 10,165	$ 1,903
Customer derivatives and dealer offsets
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	471	599	1,685	2,551
Bifurcated embedded derivatives and dealer offsets
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(108)	0	90	417
Mortgage banking derivatives
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	1,047	(1,407)	8,297	(1,065)
Risk participations
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (1)	$ 0	$ 93	$ 0

XML

Goodwill and Other Intangible Assets - Carrying amount (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Goodwill and other intangible assets
Total intangible assets subject to amortization	$ 29,694		$ 20,400
Goodwill	751,174	$ 751,174	452,007	$ 381,972	$ 367,809	$ 367,809
Total goodwill and other intangible assets, net	780,868		472,407
Core deposit intangible
Goodwill and other intangible assets
Intangibles subject to amortization, gross	46,900		38,192
Less: accumulated amortization	(24,690)		(25,870)
Total intangible assets subject to amortization	22,210		12,322
Customer relationship intangible
Goodwill and other intangible assets
Intangibles subject to amortization, gross	8,400		8,400
Less: accumulated amortization	(916)		(322)
Total intangible assets subject to amortization	$ 7,484		$ 8,078

XML

Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Customer relationship intangible | Reliant
Finite-Lived Intangible Assets [Line Items]
Intangible asset acquired	$ 14.5

XML

Goodwill and Other Intangible Assets - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 751,174	$ 367,809	$ 452,007	$ 367,809
Acquisitions	0	14,163	299,167	14,163
Goodwill, ending balance	751,174	$ 381,972	751,174	$ 381,972
Accumulated impairment losses on goodwill	$ 306,000		$ 306,000		$ 306,000

XML

Goodwill and Other Intangible Assets - Estimated aggregate amortization expense for future periods (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Estimated Aggregate Amortization Expense For Future Periods
Remainder of 2022	$ 1,620
2023	5,903
2024	5,018
2025	4,051
2026	3,303
Thereafter	9,799
Total intangible assets subject to amortization	$ 29,694	$ 20,400

XML

Long-term Debt - Summary (Details) - USD ($) $ in Thousands	9 Months Ended	28 Months Ended	60 Months Ended	66 Months Ended	71 Months Ended
	Sep. 30, 2022	Dec. 31, 2027	Dec. 31, 2029	Dec. 31, 2030	Dec. 31, 2028	Dec. 31, 2021
Debt Instrument [Line Items]
Less net discount	$ (4,817)					$ (8,260)
Total long-term debt	324,515					247,360
Senior debentures
Debt Instrument [Line Items]
Long-term debt, gross	135,000					135,000
Senior debentures | 2027 senior debentures
Debt Instrument [Line Items]
Long-term debt, gross	$ 35,000					35,000
Issue Date	2015
Stated Maturity Date	2027
Earliest Call Date	2025
Interest Rate (percent)	5.50%
Senior debentures | 2027 senior debentures | LIBOR | Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (spread)		3.71%
Senior debentures | 2030 senior debentures
Debt Instrument [Line Items]
Long-term debt, gross	$ 100,000					100,000
Issue Date	2020
Stated Maturity Date	2030
Earliest Call Date	2025
Interest Rate (percent)	5.00%
Senior debentures | 2030 senior debentures | SOFR | Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (spread)				4.87%
Subordinated debentures
Debt Instrument [Line Items]
Long-term debt, gross	$ 160,000					100,000
Subordinated debentures | 2028 subordinated debentures
Debt Instrument [Line Items]
Long-term debt, gross	$ 100,000					100,000
Issue Date	2018
Stated Maturity Date	2028
Earliest Call Date	2023
Interest Rate (percent)	4.50%
Subordinated debentures | 2028 subordinated debentures | LIBOR | Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (spread)					2.12%
Subordinated debentures | 2029 subordinated debentures
Debt Instrument [Line Items]
Long-term debt, gross	$ 60,000					0
Issue Date	2019
Stated Maturity Date	2029
Earliest Call Date	2024
Interest Rate (percent)	5.125%
Subordinated debentures | 2029 subordinated debentures | SOFR | Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (spread)			3.765%
Trust preferred securities
Debt Instrument [Line Items]
Long-term debt, gross	$ 34,332					20,620
Trust preferred securities | Tidelands Statutory Trust I
Debt Instrument [Line Items]
Long-term debt, gross	$ 8,248					8,248
Issue Date	2006
Stated Maturity Date	2036
Trust preferred securities | Tidelands Statutory Trust I | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (spread)	1.38%
Trust preferred securities | Four Oaks Statutory Trust I
Debt Instrument [Line Items]
Long-term debt, gross	$ 12,372					12,372
Issue Date	2006
Stated Maturity Date	2036
Trust preferred securities | Four Oaks Statutory Trust I | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (spread)	1.35%
Trust preferred securities | Community First Capital Trust I
Debt Instrument [Line Items]
Long-term debt, gross	$ 3,093					0
Issue Date	2002
Stated Maturity Date	2032
Trust preferred securities | Community First Capital Trust I | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (spread)	0.50%
Trust preferred securities | Community First Capital Trust II
Debt Instrument [Line Items]
Long-term debt, gross	$ 5,155					0
Issue Date	2005
Stated Maturity Date	2035
Trust preferred securities | Community First Capital Trust II | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (spread)	1.50%
Trust preferred securities | Community First Capital Trust III
Debt Instrument [Line Items]
Long-term debt, gross	$ 5,464					$ 0
Issue Date	2007
Stated Maturity Date	2037
Trust preferred securities | Community First Capital Trust III | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (spread)	3.00%

XML

Long-term Debt - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jan. 01, 2022
Reliant
Debt Instrument [Line Items]
Long-term debt assumed	$ 76,700	$ 76,730

XML

Assets and Liabilities Measured at Fair Value - Assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Debt securities available-for-sale	$ 3,862,886	$ 4,496,824
Mortgage loans held for sale	19,888	44,109
U.S. Treasuries
Assets:
Debt securities available-for-sale	178,473	217,520
U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	256,026	187,032
State and political subdivisions
Assets:
Debt securities available-for-sale	315,502	275,844
Corporate bonds
Assets:
Debt securities available-for-sale	225,910	193,166
Asset-backed securities
Assets:
Debt securities available-for-sale	326,482	604,277
Recurring
Assets:
Equity securities with readily available fair values	14,002	1,302
Mortgage loans held for sale	19,888	44,109
Deferred compensation plan assets	10,904	11,769
Servicing rights for SBA/USDA loans	6,078	6,513
Residential mortgage servicing rights	37,154	25,161
Derivative financial instruments	54,344	42,480
Total assets	4,005,256	4,628,158
Liabilities:
Deferred compensation plan liability	10,929	11,795
Derivative financial instruments	106,135	25,145
Total liabilities	117,064	36,940
Recurring | U.S. Treasuries
Assets:
Debt securities available-for-sale	178,473	217,520
Recurring | U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	256,026	187,032
Recurring | State and political subdivisions
Assets:
Debt securities available-for-sale	315,502	275,844
Recurring | Residential MBS
Assets:
Debt securities available-for-sale	1,856,890	2,145,134
Recurring | Commercial MBS
Assets:
Debt securities available-for-sale	703,603	873,851
Recurring | Corporate bonds
Assets:
Debt securities available-for-sale	225,910	193,166
Recurring | Asset-backed securities
Assets:
Debt securities available-for-sale	326,482	604,277
Recurring | Level 1
Assets:
Equity securities with readily available fair values	12,934	0
Mortgage loans held for sale	0	0
Deferred compensation plan assets	10,904	11,769
Servicing rights for SBA/USDA loans	0	0
Residential mortgage servicing rights	0	0
Derivative financial instruments	0	0
Total assets	202,311	229,289
Liabilities:
Deferred compensation plan liability	10,929	11,795
Derivative financial instruments	0	0
Total liabilities	10,929	11,795
Recurring | Level 1 | U.S. Treasuries
Assets:
Debt securities available-for-sale	178,473	217,520
Recurring | Level 1 | U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 1 | State and political subdivisions
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 1 | Residential MBS
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 1 | Commercial MBS
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 1 | Corporate bonds
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 1 | Asset-backed securities
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 2
Assets:
Equity securities with readily available fair values	1,068	1,302
Mortgage loans held for sale	19,888	44,109
Deferred compensation plan assets	0	0
Servicing rights for SBA/USDA loans	0	0
Residential mortgage servicing rights	0	0
Derivative financial instruments	42,326	35,722
Total assets	3,745,469	4,358,042
Liabilities:
Deferred compensation plan liability	0	0
Derivative financial instruments	92,474	20,097
Total liabilities	92,474	20,097
Recurring | Level 2 | U.S. Treasuries
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 2 | U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	256,026	187,032
Recurring | Level 2 | State and political subdivisions
Assets:
Debt securities available-for-sale	315,502	275,844
Recurring | Level 2 | Residential MBS
Assets:
Debt securities available-for-sale	1,856,890	2,145,134
Recurring | Level 2 | Commercial MBS
Assets:
Debt securities available-for-sale	703,603	873,851
Recurring | Level 2 | Corporate bonds
Assets:
Debt securities available-for-sale	223,684	190,771
Recurring | Level 2 | Asset-backed securities
Assets:
Debt securities available-for-sale	326,482	604,277
Recurring | Level 3
Assets:
Equity securities with readily available fair values	0	0
Mortgage loans held for sale	0	0
Deferred compensation plan assets	0	0
Servicing rights for SBA/USDA loans	6,078	6,513
Residential mortgage servicing rights	37,154	25,161
Derivative financial instruments	12,018	6,758
Total assets	57,476	40,827
Liabilities:
Deferred compensation plan liability	0	0
Derivative financial instruments	13,661	5,048
Total liabilities	13,661	5,048
Recurring | Level 3 | U.S. Treasuries
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 3 | U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 3 | State and political subdivisions
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 3 | Residential MBS
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 3 | Commercial MBS
Assets:
Debt securities available-for-sale	0	0
Recurring | Level 3 | Corporate bonds
Assets:
Debt securities available-for-sale	2,226	2,395
Recurring | Level 3 | Asset-backed securities
Assets:
Debt securities available-for-sale	$ 0	$ 0

XML

Assets and Liabilities Measured at Fair Value - Reconciliation for measurements at fair value on a recurring basis using significant unobservable inputs (Details) - Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Assets
Assets:
Beginning balance	$ 10,199	$ 6,889	$ 6,758	$ 10,779
Additions	0	86	0	261
Transfers from Level 3			(290)	0
Sales and settlements	0	0	0	0
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	1,819	42	5,550	(4,023)
Ending balance	12,018	7,017	12,018	7,017
SBA/USDA loan servicing rights
Assets:
Beginning balance	6,167	6,115	6,513	6,462
Additions	411	354	1,799	1,193
Transfers from Level 3			0	0
Sales and settlements	(220)	(357)	(857)	(1,001)
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	(280)	49	(1,377)	(493)
Ending balance	6,078	6,161	6,078	6,161
Residential mortgage servicing rights
Assets:
Beginning balance	35,131	21,568	25,161	16,216
Additions	704	2,813	4,594	9,806
Transfers from Level 3			0	0
Sales and settlements	(602)	(875)	(1,916)	(3,430)
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	1,921	(444)	9,315	470
Ending balance	37,154	23,062	37,154	23,062
Corporate Bonds
Assets:
Beginning balance	2,287	1,707	2,395	1,750
Additions	0	500	0	500
Transfers from Level 3			0	0
Sales and settlements	0	0	0	0
Fair value adjustments included in OCI	(61)	165	(169)	122
Fair value adjustments included in earnings	0	0	0	0
Ending balance	2,226	2,372	2,226	2,372
Derivative Liabilities
Liabilities:
Beginning balance	10,795	3,944	5,048	2,408
Additions	0	0	99	97
Transfers from Level 3			0	0
Sales and settlements	0	0	(1)	0
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	2,866	505	8,515	1,944
Ending balance	$ 13,661	$ 4,449	$ 13,661	$ 4,449

XML

Assets and Liabilities Measured at Fair Value - Quantitative information about Level 3 fair value measurements for fair value on recurring basis (Details) - Recurring - Level 3	Sep. 30, 2022	Dec. 31, 2021
SBA/USDA loan servicing rights | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.058	0.000
SBA/USDA loan servicing rights | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.250	0.454
SBA/USDA loan servicing rights | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.135	0.103
SBA/USDA loan servicing rights | Prepayment rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.000	0.032
SBA/USDA loan servicing rights | Prepayment rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.351	0.313
SBA/USDA loan servicing rights | Prepayment rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights for SBA/USDA loans, measurement input	0.168	0.163
Residential mortgage servicing rights | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.095	0.095
Residential mortgage servicing rights | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.115	0.105
Residential mortgage servicing rights | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.095	0.095
Residential mortgage servicing rights | Prepayment rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.070	0.070
Residential mortgage servicing rights | Prepayment rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.323	0.776
Residential mortgage servicing rights | Prepayment rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.074	0.126
Corporate bonds | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.059	0.036
Corporate bonds | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.061	0.038
Corporate bonds | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.060	0.036
Derivative assets - customer derivative positions | Estimated loss rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input		0.334
Derivative assets - customer derivative positions | Estimated loss rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input		0.440
Derivative assets - customer derivative positions | Estimated loss rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input		0.360
Derivative assets - mortgage | Pull through rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input	0.450	0.459
Derivative assets - mortgage | Pull through rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input	1	1
Derivative assets - mortgage | Pull through rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input	0.907	0.872

XML

Assets and Liabilities Measured at Fair Value - Fair Value Option (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Mortgage Loans Held for Sale
Outstanding principal balance	$ 20,180		$ 20,180		$ 42,581
Fair value	19,888		19,888		$ 44,109
Mortgage loan gains and other related fees	$ (809)	$ (1,609)	$ (1,820)	$ (3,330)

XML

Assets and Liabilities Measured at Fair Value - Assets and liabilities measured at fair value on nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 1,820	$ 2,536
Mortgage loans held for sale	2,079
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	0	0
Mortgage loans held for sale	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	0	0
Mortgage loans held for sale	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	1,820	$ 2,536
Mortgage loans held for sale	$ 2,079

XML

Assets and Liabilities Measured at Fair Value - Narrative (Details)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Maximum remaining maturity of financial instruments having no defined maturity	180 days

XML

Assets and Liabilities Measured at Fair Value - Carrying amount and fair values for other financial instruments that are not measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
HTM debt securities	$ 2,241,160	$ 1,148,804
Carrying Amount
Assets:
HTM debt securities	2,676,405	1,156,098
Loans and leases, net	14,733,982	11,657,814
Liabilities:
Deposits	20,321,142	18,241,179
Long-term debt	324,515	247,360
Fair Value
Assets:
HTM debt securities	2,241,160	1,148,804
Loans and leases, net	14,250,071	11,607,821
Liabilities:
Deposits	20,315,750	18,239,934
Long-term debt	313,944	267,064
Fair Value | Level 1
Assets:
HTM debt securities	17,253	0
Loans and leases, net	0	0
Liabilities:
Deposits	0	0
Long-term debt	0	0
Fair Value | Level 2
Assets:
HTM debt securities	2,223,907	1,148,804
Loans and leases, net	0	0
Liabilities:
Deposits	20,315,750	18,239,934
Long-term debt	0	0
Fair Value | Level 3
Assets:
HTM debt securities	0	0
Loans and leases, net	14,250,071	11,607,821
Liabilities:
Deposits	0	0
Long-term debt	$ 313,944	$ 267,064

XML

Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan vesting period	4 years
Plan exercisable period	10 years
Additional awards remaining available under plan (in shares)	2,800
Income tax benefit related to expense for share-based awards	$ 1,700	$ 1,230
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	0	0
Restricted stock units and performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 19,100
Recognition period for unrecognized compensation expense	2 years 10 months 24 days
Employees | Restricted stock units and performance stock units | Salaries and employee benefits expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 6,240	4,420
Directors | Restricted stock units and performance stock units | Other operating expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 412	$ 397

XML

Stock-Based Compensation - Restricted stock units and options outstanding activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Options, Shares
Beginning balance, outstanding (in shares) | shares	35,460
Granted (in shares) | shares	48,239
Released / Exercised (in shares) | shares	(16,257)
Cancelled (in shares) | shares	0
Ending balance, outstanding (in shares) | shares	67,442
Exercisable (in shares) | shares	67,442
Options, Weighted Average Exercise Price
Beginning balance, outstanding (in dollars per share) | $ / shares	$ 8.38
Granted (in dollars per share) | $ / shares	20.88
Released / Exercised (in dollars per shares) | $ / shares	20.77
Cancelled (in dollars per share) | $ / shares	0
Ending balance, outstanding (in dollars per share) | $ / shares	14.33
Exercisable (in dollars per share) | $ / shares	$ 14.33
Outstanding, Weighted Average Remaining Term (in years)	3 years
Exercisable, Weighted Average Remaining Term (in years)	3 years
Released / Exercised during period, Aggregate Intrinsic Value | $	$ 252
Outstanding, Aggregate Intrinsic Value | $	1,266
Exercisable, Aggregate Intrinsic Value | $	$ 1,266
Restricted Stock Units
Shares
Outstanding, beginning balance (in shares) | shares	808,474
Granted (in shares) | shares	335,866
Released / Exercised (in shares) | shares	(289,860)
Cancelled (in shares) | shares	(29,925)
Outstanding, ending balance (in shares) | shares	824,555
Vested (in shares) | shares	0
Weighted- Average Grant- Date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 25.15
Granted (in dollars per share) | $ / shares	32.81
Released / Exercised (in dollars per share) | $ / shares	25.11
Cancelled (in dollars per share) | $ / shares	26.06
Outstanding, ending balance (in dollars per share) | $ / shares	28.25
Vested (in dollars per share) | $ / shares	$ 0
Aggregate Intrinsic Value, Released / Exercised | $	$ 10,252
Aggregate Intrinsic Value, Outstanding | $	$ 27,293

XML

Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains (losses), net	$ 0	$ 0	$ (3,688)	$ 41
Income tax benefit	(22,388)	(21,603)	(53,898)	(63,758)
Investment securities interest revenue	213,887	147,675	572,324	435,026
Long-term debt interest expense	(4,206)	(3,494)	(12,515)	(11,564)
Salaries and employee benefits expense	(67,823)	(60,458)	(208,062)	(180,457)
Other expense	(6,172)	(4,345)	(16,066)	(12,248)
Total before tax	103,549	95,419	249,920	281,540
Net income	81,161	73,816	196,022	217,782
Reclassifications out of AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(3,562)	(308)	(8,056)	(886)
Reclassifications out of AOCI | Realized gains (losses) on AFS securities:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains (losses), net	0	0	(3,688)	41
Income tax benefit	0	0	979	(14)
Net income	0	0	(2,709)	27
Reclassifications out of AOCI | Amortization of unrealized losses on HTM securities transferred from AFS:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit	1,073	0	1,495	0
Investment securities interest revenue	(4,473)	0	(6,242)	0
Net income	(3,400)	0	(4,747)	0
Reclassifications out of AOCI | Losses on derivative instruments accounted for as cash flow hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit	12	39	75	113
Long-term debt interest expense	(48)	(153)	(295)	(444)
Net income	(36)	(114)	(220)	(331)
Reclassifications out of AOCI | Amortization of defined benefit pension plan net periodic pension cost components:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit	43	66	130	200
Total before tax	(169)	(260)	(510)	(782)
Net income	(126)	(194)	(380)	(582)
Reclassifications out of AOCI | Prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits expense	(91)	(117)	(276)	(351)
Reclassifications out of AOCI | Actuarial losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense	$ (78)	$ (143)	$ (234)	$ (431)

XML

Earnings Per Share - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Computation of basic and diluted earnings per share
Net income	$ 81,161	$ 73,816	$ 196,022	$ 217,782
Dividends on preferred stock	(1,719)	(1,719)	(5,157)	(5,157)
Earnings allocated to participating securities	(407)	(448)	(1,007)	(1,342)
Net income available to common shareholders, basic	79,035	71,649	189,858	211,283
Net income available to common shareholders, diluted	$ 79,035	$ 71,649	$ 189,858	$ 211,283
Weighted average shares outstanding:
Basic (in shares)	106,687	87,211	106,616	87,274
Effect of dilutive securities:
Diluted (in shares)	106,800	87,355	106,732	87,413
Net income per common share:
Basic (in dollars per share)	$ 0.74	$ 0.82	$ 1.78	$ 2.42
Diluted (in dollars per share)	$ 0.74	$ 0.82	$ 1.78	$ 2.42
Stock options
Effect of dilutive securities:
Restricted stock units (in shares)	38	0	40	0
Restricted stock units
Effect of dilutive securities:
Restricted stock units (in shares)	75	144	76	139

XML

Earnings Per Share - Narrative (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Potentially dilutive instruments outstanding not included in EPS analysis (in shares)	0	0

XML

Regulatory Matters (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital, Minimum	0.045
CET1 capital, Well-Capitalized	0.065
CET1 capital	0.1213	0.1246
Tier 1 capital, Minimum	0.060
Tier 1 capital, Well-Capitalized	0.080
Tier 1 capital	0.1268	0.1317
Total capital, Minimum	0.080
Total capital, Well-Capitalized	0.100
Total capital	0.1462	0.1465
Leverage ratio, Minimum	0.040
Leverage ratio, Well-Capitalized	0.050
Leverage ratio	0.0941	0.0875
CET1 capital	$ 2,101,819	$ 1,688,176
Tier 1 capital	2,198,241	1,784,598
Total capital	2,534,810	1,984,376
Risk-weighted assets	17,332,391	13,548,534
Average total assets for the leverage ratio	$ 23,359,608	$ 20,402,842
United Community Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital	0.1294	0.1287
Tier 1 capital	0.1294	0.1287
Total capital	0.1375	0.1346
Leverage ratio	0.0958	0.0853
CET1 capital	$ 2,234,151	$ 1,738,557
Tier 1 capital	2,234,151	1,738,557
Total capital	2,374,603	1,818,335
Risk-weighted assets	17,269,896	13,512,405
Average total assets for the leverage ratio	$ 23,308,849	$ 20,377,319

XML

Commitments and Contingencies - Contractual amount of off-balance sheet instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Commitments to extend credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments	$ 4,592,092	$ 3,591,975
Letters of credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments	$ 53,526	$ 29,312

XML

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Commitments [Line Items]
Investment in limited partnerships	$ 79,800	$ 52,700
Commitment for additional fund	6,960
United Community Banks Inc, Holding Company
Other Commitments [Line Items]
Commitment for additional fund	$ 18,100