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 June 30, 2023

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 118,853,361 shares of the registrant’s common stock, par value $1 per share, outstanding as of July 31, 2023.

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 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	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
2022 10-K	United’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 24, 2023
ACL	Allowance for credit losses
AFS	Available-for-sale
ALCO	Asset/Liability Management Committee
AOCI	Accumulated other comprehensive income (loss)
ARR	Alternative reference rate
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
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
FDM	Modification made to borrowers experiencing financial difficulty
Federal Reserve	Federal Reserve System
First Miami	First Miami Bancorp, Inc. and its wholly-owned subsidiary, First National Bank of South Miami
FHLB	Federal Home Loan Bank
FOMC	Federal Reserve’s Federal Open Markets Committee
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
Holding Company	United Community Banks, Inc. on an unconsolidated basis
HTM	Held-to-maturity
LIBOR	London Interbank Offered Rate
LIHTC	Low- income housing tax credit
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
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 for the quarterly period ending June 30, 2023
SBA	United States Small Business Administration
SEC	Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
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
VIE	Variable interest entity

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, 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, the banking sector, 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 NPAs, charge-offs and provision expense;

•changes in loan underwriting, credit review or loss policies associated with economic conditions, examination conclusions or regulatory developments;

•the potential effects of pandemics or public health conditions on the economic and business environments in which we operate;

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

•potential fluctuations or unanticipated changes in the interest rate environment, including interest rate changes made by the Federal Reserve, replacements of LIBOR and replacement or reform of other interest rate benchmarks, as well as 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;

•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 greater than anticipated adverse conditions 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 our ability to identify and complete future mergers or acquisitions as well as our ability to successfully expand and integrate those 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 or 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, 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 affecting our business;

•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 matter 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 its ability to pay dividends to shareholders or take other capital actions;

•the potential effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as war or terrorist activities, the Russian invasion of Ukraine, disruptions in our customers’ supply chains, disruptions in transportation, essential utility outages or trade disputes and related tariffs; 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 2022 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)

	June 30, 2023		December 31, 2022
ASSETS
Cash and due from banks	$	267,075	$	195,771
Interest-bearing deposits in banks	443,661		316,082
Federal funds and other short-term investments	—		135,000
Cash and cash equivalents	710,736		646,853
Debt securities available-for-sale	3,359,989		3,614,333
Debt securities held-to-maturity (fair value $2,132,396 and $2,191,073, respectively)	2,553,835		2,613,648
Loans held for sale	27,104		13,600
Loans and leases held for investment	17,394,845		15,334,627
Less allowance for credit losses - loans and leases	(190,705)		(159,357)
Loans and leases, net	17,204,140		15,175,270
Premises and equipment, net	353,317		298,456
Bank owned life insurance	342,966		299,297
Goodwill and other intangible assets, net	957,823		779,248
Other assets	610,287		568,179
Total assets	$	26,120,197	$	24,008,884
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	6,970,668	$	7,643,081
Interest-bearing deposits	15,281,320		12,233,426
Total deposits	22,251,988		19,876,507
Short-term borrowings	—		158,933
Federal Home Loan Bank advances	—		550,000
Long-term debt	324,754		324,663
Accrued expenses and other liabilities	437,864		398,107
Total liabilities	23,014,606		21,308,210
Shareholders' equity:
Preferred stock, $1 par value: 10,000,000 shares authorized; 3,989 and 4,000 shares Series I issued and   outstanding, respectively; $25,000 per share liquidation preference	96,165		96,422
Common stock, $1 par value: 200,000,000 shares authorized,   115,265,912 and 106,222,758 shares issued and outstanding, respectively	115,266		106,223
Common stock issuable: 587,775 and 607,128 shares, respectively	12,228		12,307
Capital surplus	2,610,523		2,306,366
Retained earnings	577,316		508,844
Accumulated other comprehensive loss	(305,907)		(329,488)
Total shareholders' equity	3,105,591		2,700,674
Total liabilities and shareholders' equity	$	26,120,197	$	24,008,884

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest revenue:
Loans, including fees	$	250,484	$	155,266	$	486,915	$	302,007
Investment securities, including tax exempt of $1,731, $2,539, $3,841 and $5,194, respectively	41,060		30,425		81,046		54,090
Deposits in banks and short-term investments	4,231		1,687		7,301		2,340
Total interest revenue	295,775		187,378		575,262		358,437
Interest expense:
Deposits	89,217		4,302		147,078		7,433
Short-term borrowings	1,849		—		2,997		—
Federal Home Loan Bank advances	649		—		5,761		—
Long-term debt	3,774		4,173		7,670		8,309
Total interest expense	95,489		8,475		163,506		15,742
Net interest revenue	200,286		178,903		411,756		342,695
Provision for credit losses	22,753		5,604		44,536		28,690
Net interest revenue after provision for credit losses	177,533		173,299		367,220		314,005
Noninterest income:
Service charges and fees	9,777		10,005		18,476		19,075
Mortgage loan gains and other related fees	6,584		6,971		11,105		23,123
Wealth management fees	5,600		5,985		11,324		11,880
Gains from sales of other loans, net	2,305		3,800		4,221		6,998
Lending and loan servicing fees	2,978		1,586		6,994		4,572
Securities gains (losses), net	—		46		(1,644)		(3,688)
Other	9,143		5,065		16,120		10,471
Total noninterest income	36,387		33,458		66,596		72,431
Total revenue	213,920		206,757		433,816		386,436
Noninterest expenses:
Salaries and employee benefits	76,250		69,233		154,948		140,239
Communications and equipment	10,744		9,675		20,752		18,923
Occupancy	10,194		8,865		20,083		18,243
Advertising and public relations	2,314		2,300		4,663		3,788
Postage, printing and supplies	2,382		1,999		4,919		4,118
Professional fees	6,592		5,402		12,664		9,849
Lending and loan servicing expense	2,530		3,047		4,849		5,413
Outside services - electronic banking	2,660		2,947		6,085		5,470
FDIC assessments and other regulatory charges	4,142		2,267		8,143		4,440
Amortization of intangibles	3,421		1,736		6,949		3,529
Merger-related and other charges	3,645		7,143		12,276		16,159
Other	7,533		6,176		15,881		9,894
Total noninterest expenses	132,407		120,790		272,212		240,065
Income before income taxes	81,513		85,967		161,604		146,371
Income tax expense	18,225		19,125		36,016		31,510
Net income	$	63,288	$	66,842	$	125,588	$	114,861
Net income available to common shareholders	$	61,227	$	64,761	$	121,470	$	110,827
Net income per common share:
Basic	$	0.53	$	0.61	$	1.05	$	1.04
Diluted	0.53		0.61		1.05		1.04
Weighted average common shares outstanding:
Basic	115,774		106,610		115,614		106,580
Diluted	115,869		106,716		115,795		106,697

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 June 30,						Six Months Ended June 30,
	Before-tax Amount		Tax (Expense) Benefit		Net of Tax Amount		Before-tax Amount		Tax (Expense) Benefit		Net of Tax Amount
2023
Net income	$	81,513	$	(18,225)	$	63,288	$	161,604	$	(36,016)	$	125,588
Other comprehensive income:
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses)	(19,753)		4,782		(14,971)		23,526		(5,502)		18,024
Reclassification adjustment for losses included in net income	—		—		—		1,644		(374)		1,270
Net unrealized gains (losses)	(19,753)		4,782		(14,971)		25,170		(5,876)		19,294
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale	2,518		(604)		1,914		5,486		(1,324)		4,162
Derivative instruments designated as cash flow hedges:
Unrealized holding gains on derivatives	3,303		(843)		2,460		2,101		(536)		1,565
Gains on derivative instruments realized in net income	(1,234)		315		(919)		(2,056)		525		(1,531)
Net cash flow hedge activity	2,069		(528)		1,541		45		(11)		34
Amortization of defined benefit pension plan net periodic pension cost components	61		(15)		46		122		(31)		91
Total other comprehensive income (loss)	(15,105)		3,635		(11,470)		30,823		(7,242)		23,581
Comprehensive income	$	66,408	$	(14,590)	$	51,818	$	192,427	$	(43,258)	$	149,169
2022
Net income	$	85,967	$	(19,125)	$	66,842	$	146,371	$	(31,510)	$	114,861
Other comprehensive loss:
Unrealized losses on available-for-sale securities:
Unrealized holding losses	(120,968)		28,801		(92,167)		(324,853)		76,774		(248,079)
Reclassification of securities from available-for-sale to held-to-maturity	30,041		(7,178)		22,863		87,444		(20,770)		66,674
Reclassification adjustment for (gains) losses included in net income	(46)		11		(35)		3,688		(979)		2,709
Net unrealized losses	(90,973)		21,634		(69,339)		(233,721)		55,025		(178,696)
Unrealized losses on held-to-maturity securities transferred from available-for-sale:
Reclassification of unrealized losses	(30,041)		7,178		(22,863)		(87,444)		20,770		(66,674)
Amortization of unrealized losses	1,769		(422)		1,347		1,769		(422)		1,347
Net activity	(28,272)		6,756		(21,516)		(85,675)		20,348		(65,327)
Derivative instruments designated as cash flow hedges:
Unrealized holding gains on derivatives	2,412		(616)		1,796		7,880		(2,013)		5,867
Losses on derivative instruments realized in net income	106		(27)		79		247		(63)		184
Net cash flow hedge activity	2,518		(643)		1,875		8,127		(2,076)		6,051
Amortization of defined benefit pension plan net periodic pension cost components	171		(44)		127		341		(87)		254
Total other comprehensive loss	(116,556)		27,703		(88,853)		(310,928)		73,210		(237,718)
Comprehensive loss	$	(30,589)	$	8,578	$	(22,011)	$	(164,557)	$	41,700	$	(122,857)

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 March 31, 2022	106,025,210	$	96,422	$	106,025	$	11,311	$	2,302,189	$	354,409	$	(175,341)	$	2,695,015
Net income										66,842				66,842
Other comprehensive loss												(88,853)		(88,853)
Preferred stock dividends										(1,719)				(1,719)
Common stock dividends ($0.21 per share)										(22,562)				(22,562)
Impact of equity-based compensation awards	6,520			7		10		2,347						2,364
Impact of other United sponsored equity plans	2,230			2		127		72						201
Balance at June 30, 2022	106,033,960	$	96,422	$	106,034	$	11,448	$	2,304,608	$	396,970	$	(264,194)	$	2,651,288
Balance at March 31, 2023	115,151,566	$	96,422	$	115,152	$	11,977	$	2,606,403	$	542,606	$	(294,437)	$	3,078,123
Net income										63,288				63,288
Other comprehensive loss												(11,470)		(11,470)
Preferred stock dividends										(1,719)				(1,719)
Common stock dividends ($0.23 per share)										(26,859)				(26,859)
Purchases of preferred stock		(257)						35						(222)
Impact of equity-based compensation awards	110,414			110		125		3,989						4,224
Impact of other United sponsored equity plans	3,932			4		126		96						226
Balance at June 30, 2023	115,265,912	$	96,165	$	115,266	$	12,228	$	2,610,523	$	577,316	$	(305,907)	$	3,105,591
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										114,861				114,861
Other comprehensive loss												(237,718)		(237,718)
Impact of acquisitions	16,571,545			16,571				579,805						596,376
Preferred stock dividends										(3,438)				(3,438)
Common stock dividends ($0.42 per share)										(45,107)				(45,107)
Impact of equity-based compensation awards	49,443			50		1,454		3,053						4,557
Impact of other United sponsored equity plans	63,146			63		(1,294)		743						(488)
Balance at June 30, 2022	106,033,960	$	96,422	$	106,034	$	11,448	$	2,304,608	$	396,970	$	(264,194)	$	2,651,288
Balance at December 31, 2022	106,222,758	$	96,422	$	106,223	$	12,307	$	2,306,366	$	508,844	$	(329,488)	$	2,700,674
Net income										125,588				125,588
Other comprehensive income												23,581		23,581
Impact of acquisitions	8,770,531			8,771				297,690						306,461
Purchases of preferred stock		(257)						35						(222)
Preferred stock dividends										(3,438)				(3,438)
Common stock dividends ($0.46 per share)										(53,678)				(53,678)
Impact of equity-based compensation awards	232,302			232		623		5,889						6,744
Impact of other United sponsored equity plans	40,321			40		(702)		543						(119)
Balance at June 30, 2023	115,265,912	$	96,165	$	115,266	$	12,228	$	2,610,523	$	577,316	$	(305,907)	$	3,105,591

See accompanying notes to consolidated financial statements (unaudited).

8

UNITED COMMUNITY BANKS, INC.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Six Months Ended June 30,
	2023		2022
Operating activities:
Net income	$	125,588	$	114,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	23,592		22,086
Provision for credit losses	44,536		28,690
Stock based compensation	4,790		4,861
Deferred income tax expense	5,599		4,361
Securities losses, net	1,644		3,688
Gains from sales of other loans	(4,221)		(6,998)
Changes in assets and liabilities:
Other assets	(2,962)		6,317
Accrued expenses and other liabilities	(2,128)		49,707
Loans held for sale	(11,417)		119,837
Net cash provided by operating activities	185,021		347,410
Investing activities:
Debt securities held-to-maturity:
Proceeds from maturities and calls	63,602		90,576
Purchases	—		(326,494)
Debt securities available-for-sale:
Proceeds from sales	380,661		281,521
Proceeds from maturities and calls	179,586		336,511
Purchases	(186,810)		(1,498,515)
Net increase in loans	(618,464)		(435,015)
Equity investments, outflows	(122,923)		(23,016)
Equity investments, inflows	122,576		16,241
Proceeds from sales of premises and equipment	2,169		4,792
Purchases of premises and equipment	(43,809)		(16,774)
Net cash received in acquisition	57,101		35,243
Other investing inflows	2,846		1,226
Net cash used in investing activities	(163,465)		(1,533,704)
Financing activities:
Net increase in deposits	1,040,034		128,688
Net decrease in short-term borrowings	(299,951)		—
Proceeds from FHLB advances	2,225,000		—
Repayment of FHLB advances	(2,870,000)		—
Cash dividends on common stock	(50,493)		(40,694)
Cash dividends on preferred stock	(3,438)		(3,438)
Other financing inflows	3,116		473
Other financing outflows	(1,941)		(1,538)
Net cash provided by financing activities	42,327		83,491
Net change in cash and cash equivalents	63,883		(1,102,803)
Cash and cash equivalents, beginning of period	646,853		2,318,510
Cash and cash equivalents, end of period	$	710,736	$	1,215,707

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 and Updates to Significant Accounting Policies

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 2022 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 2022 10-K.

Updates to Significant Accounting Policies

Effective January 1, 2023, United adopted ASU 2022-02, which updated the guidance on modifications to financing receivables by effectively replacing the concept of troubled debt restructurings with a new concept, loan modifications to borrowers experiencing financial difficulty. See Note 2 for further detail. Below summarizes the policy surrounding FDMs.

FDMs: A loan for which the terms have been modified as a result of the borrower experiencing financial difficulty is generally considered to be a FDM. Modified terms that result in a FDM include one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the term or amortization period, a more than insignificant payment delay or principal forgiveness. The ACL on FDMs is calculated using the same method as other loans held for investment.

Note 2 – Accounting Standards Updates and Recently Adopted Standards

Recently Adopted Standards

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from contracts with Customers. The update requires that an acquiring entity apply the guidance from Revenue from Contracts with Customers (Topic 606) to recognize and measure contract assets and contract liabilities in a business combination, rather than fair value. Adoption of this update as of January 1, 2023 did not have a material impact on the consolidated financial statements.

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. Adoption of this update as of January 1, 2023 did not 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. United adopted this update using a modified retrospective transition method as of January 1, 2023. The quantitative impact of adoption related to the CECL calculation for FDMs was not material; thus, no corresponding cumulative effect adjustment to retained earnings was recorded.

Recently Issued Standards

In March 2022, the FASB issued ASU No 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The update broadens the application of the proportional amortization method to tax equity investments other than LIHTC, providing certain conditions are met. The election to apply the proportional amortization method must be made on a tax-credit-program by tax-credit-program basis rather than at the reporting entity level or to individual investments. The update also requires certain disclosures related to those investments for which the proportional amortization method has been applied. 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 six months ended June 30, 2023 and 2022 is as follows (in thousands).

	Six Months Ended June 30,
	2023		2022
Significant non-cash investing and financing transactions:
Commitments to fund equity investments	$	11,093	$	—
Transfers of AFS securities to HTM securities	—		1,288,982
Acquisitions:
Assets acquired	1,903,930		3,254,173
Liabilities assumed	1,597,022		2,657,173
Net assets acquired	306,908		597,000
Common stock issued and options converted	306,461		596,376

11

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 4 – Acquisitions

Acquisition of Progress

On January 3, 2023, United acquired all of the outstanding common stock of Progress in a stock transaction. Progress operated 13 offices primarily located in Alabama and the Florida Panhandle, which facilitated United’s growth into those markets. United’s operating results for the three and six months ended June 30, 2023 include the operating results of the acquired business for the period subsequent to the acquisition date of January 3, 2023.

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

Progress
	Fair Value Recorded by United (1)
		January 3, 2023
	Assets
	Cash and cash equivalents	$	57,548
	Debt securities	111,006
	Loans held for sale	2,087
	Loans held for investment	1,442,959
	Premises and equipment	21,118
	Bank-owned life insurance	40,723
	Core deposit intangible	39,980
	Other assets	42,965
	Total assets acquired	1,758,386
	Liabilities
	Deposits	1,334,476
	Short-term borrowings	141,017
	Federal Home Loan Bank advances	95,000
	Other liabilities	26,529
	Total liabilities assumed	1,597,022
	Total identifiable net assets	161,364
	Consideration transferred
	Cash	447
	Common stock issued (8,770,531 shares)	296,444
	Options converted	10,017
	Total fair value of consideration transferred	306,908
	Goodwill	$	145,544

(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 Progress’ business and reputation within the markets it served and is not expected to be deductible for income tax purposes. The Progress 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 Progress loan portfolio at the acquisition date (in thousands).

	January 3, 2023
PCD loans:
Par value	$	64,913
ACL at acquisition	(2,704)
Non-credit discount	(150)
Purchase price	$	62,059
Non-PCD loans:
Fair value	$	1,380,900
Gross contractual amounts receivable	1,626,243
Estimate of contractual cash flows not expected to be collected	9,287

Pro forma information

The following table discloses the impact of the Progress acquisition since the date of acquisition. The table also presents certain pro forma information as if Progress had been acquired on January 1, 2022 and Reliant had been acquired on January 1, 2021. These results combine the historical results of the acquired entities 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 acquisitions taken place in earlier years.

Merger-related costs related to the Progress acquisition for the three and six months ended June 30, 2023 of $2.29 million and $9.78 million, respectively, have been excluded from the pro forma information for those periods presented below and included in the three and six months ended June 30, 2022 pro forma information. Merger-related costs related to the Reliant acquisition for the three and six months ended June 30, 2022 of $5.46 million and $14.0 million, respectively, have been excluded from the pro forma information presented below. The actual results and pro forma information were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	Revenue		Net Income		Revenue		Net Income
2023
Actual Progress results included in statement of income since acquisition date	$	17,969	$	3,288	$	24,621	$	5,098
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022	213,509		64,832		443,050		140,041
2022
Actual Reliant results included in statement of income since acquisition date	$	29,172	$	15,550	$	43,086	$	16,148
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022 and Reliant had been acquired January 1, 2021	$	225,984	$	73,656	$	430,853	$	131,038

13

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 5 – Investment 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 June 30, 2023
U.S. Treasuries	$	19,849	$	—	$	2,354	$	17,495
U.S. Government agencies & GSEs	99,779		—		17,112		82,667
State and political subdivisions	294,920		23		56,274		238,669
Residential MBS, Agency & GSEs	1,438,048		13		222,256		1,215,805
Commercial MBS, Agency & GSEs	686,239		—		120,831		565,408
Supranational entities	15,000		—		2,648		12,352
Total	$	2,553,835	$	36	$	421,475	$	2,132,396
As of December 31, 2022
U.S. Treasuries	$	19,834	$	—	$	2,417	$	17,417
U.S. Government agencies & GSEs	99,679		—		18,169		81,510
State and political subdivisions	295,945		56		64,340		231,661
Residential MBS, Agency & GSEs	1,488,028		35		223,566		1,264,497
Commercial MBS, Agency & GSEs	695,162		—		111,586		583,576
Supranational entities	$	15,000	$	—	$	2,588	$	12,412
Total	$	2,613,648	$	91	$	422,666	$	2,191,073

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). During the second quarter of 2023, United entered into fair value hedges on stated amounts of a closed portfolio of AFS debt securities using the portfolio layer method, which is further explained in Note 7.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of June 30, 2023
U.S. Treasuries	$	347,029	$	34	$	13,640	$	333,423
U.S. Government agencies & GSEs	252,981		295		16,180		237,096
State and political subdivisions	183,201		—		22,100		161,101
Residential MBS, Agency & GSEs	1,445,528		—		158,964		1,286,564
Residential MBS, Non-agency	360,476		—		26,805		333,671
Commercial MBS, Agency & GSEs	669,625		—		81,276		588,349
Commercial MBS, Non-agency	31,097		—		1,008		30,089
Corporate bonds	218,886		60		22,210		196,736
Asset-backed securities	198,279		27		5,346		192,960
Total	3,707,102		416		347,529		3,359,989
As of December 31, 2022
U.S. Treasuries	$	163,972	$	—	$	14,620	$	149,352
U.S. Government agencies & GSEs	266,347		463		16,694		250,116
State and political subdivisions	329,723		151		26,126		303,748
Residential MBS, Agency & GSEs	1,609,442		13		160,636		1,448,819
Residential MBS, Non-agency	374,535		—		27,873		346,662
Commercial MBS, Agency & GSEs	720,282		471		79,407		641,346
Commercial MBS, Non-agency	31,624		—		1,058		30,566
Corporate bonds	236,181		34		23,763		212,452
Asset-backed securities	239,220		—		7,948		231,272
Total	$	3,971,326	$	1,132	$	358,125	$	3,614,333

14

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Securities with a carrying value of $4.43 billion and $2.53 billion were pledged, primarily to secure public deposits and provide contingent liquidity through the Bank Term Funding Program at the Federal Reserve Bank, at June 30, 2023 and December 31, 2022, 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 June 30, 2023
U.S. Treasuries	$	—	$	—	$	17,495	$	2,354	$	17,495	$	2,354
U.S. Government agencies & GSEs	—		—		82,667		17,112		82,667		17,112
State and political subdivisions	22,629		220		211,786		56,054		234,415		56,274
Residential MBS, Agency & GSEs	55,552		3,332		1,158,955		218,924		1,214,507		222,256
Commercial MBS, Agency & GSEs	6,479		220		558,928		120,611		565,407		120,831
Supranational entities	—		—		12,352		2,648		12,352		2,648
Total unrealized loss position	$	84,660	$	3,772	$	2,042,183	$	417,703	$	2,126,843	$	421,475
As of December 31, 2022
U.S. Treasuries	$	17,417	$	2,417	$	—	$	—	$	17,417	$	2,417
U.S. Government agencies & GSEs	10,687		1,813		70,823		16,356		81,510		18,169
State and political subdivisions	104,243		20,639		117,115		43,701		221,358		64,340
Residential MBS, Agency & GSEs	296,673		38,289		965,785		185,277		1,262,458		223,566
Commercial MBS, Agency & GSEs	176,848		24,497		406,728		87,089		583,576		111,586
Supranational entities	12,412		2,588		—		—		12,412		2,588
Total unrealized loss position	$	618,280	$	90,243	$	1,560,451	$	332,423	$	2,178,731	$	422,666

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 June 30, 2023
U.S. Treasuries	$	49,170	$	16	$	150,685	$	13,624	$	199,855	$	13,640
U.S. Government agencies & GSEs	64,447		509		127,787		15,671		192,234		16,180
State and political subdivisions	552		33		160,549		22,067		161,101		22,100
Residential MBS, Agency & GSEs	219,050		11,928		1,067,514		147,036		1,286,564		158,964
Residential MBS, Non-agency	8,618		320		325,053		26,485		333,671		26,805
Commercial MBS, Agency & GSEs	102,718		6,058		485,631		75,218		588,349		81,276
Commercial MBS, Non-agency	—		—		30,089		1,008		30,089		1,008
Corporate bonds	8,746		879		186,121		21,331		194,867		22,210
Asset-backed securities	14,302		102		172,093		5,244		186,395		5,346
Total unrealized loss position	$	467,603	$	19,845	$	2,705,522	$	327,684	$	3,173,125	$	347,529
As of December 31, 2022
U.S. Treasuries	$	49,259	$	724	$	100,093	$	13,896	$	149,352	$	14,620
U.S. Government agencies & GSEs	93,015		2,124		108,093		14,570		201,108		16,694
State and political subdivisions	207,749		9,906		62,606		16,220		270,355		26,126
Residential MBS, Agency & GSEs	1,049,648		102,852		392,288		57,784		1,441,936		160,636
Residential MBS, Non-agency	338,399		27,095		8,263		778		346,662		27,873
Commercial MBS, Agency & GSEs	288,787		17,304		332,088		62,103		620,875		79,407
Commercial MBS, Non-agency	30,566		1,058		—		—		30,566		1,058
Corporate bonds	83,010		7,776		127,603		15,987		210,613		23,763
Asset-backed securities	97,705		2,664		133,567		5,284		231,272		7,948
Total unrealized loss position	$	2,238,138	$	171,503	$	1,264,601	$	186,622	$	3,502,739	$	358,125

15

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

At June 30, 2023, there were 678 AFS debt securities and 325 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 June 30, 2023 were primarily attributable to changes in interest rates.

At June 30, 2023 and December 31, 2022, 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 June 30, 2023 or December 31, 2022. In addition, based on the assessments performed at June 30, 2023 and December 31, 2022, 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
	June 30, 2023		December 31, 2022
HTM	$	6,098	$	7,234
AFS	11,859		15,281

The amortized cost and fair value of AFS and HTM debt securities at June 30, 2023, 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	$	232,932	$	232,830	$	—	$	—
U.S. Government agencies & GSEs	338		331		—		—
State and political subdivisions	2,027		1,955		1,200		1,194
Corporate bonds	5,177		5,014		—		—
	240,474		240,130		1,200		1,194
1 to 5 years:
U.S. Treasuries	114,097		100,593		19,849		17,495
U.S. Government agencies & GSEs	39,403		35,781		—		—
State and political subdivisions	15,948		14,904		28,575		26,505
Corporate bonds	156,810		142,227		—		—
	326,258		293,505		48,424		44,000
5 to 10 years:
U.S. Government agencies & GSEs	71,084		63,053		73,352		61,460
State and political subdivisions	59,659		49,693		37,257		31,827
Corporate bonds	56,097		48,643		—		—
Supranational entities	—		—		15,000		12,352
	186,840		161,389		125,609		105,639
More than 10 years:
U.S. Government agencies & GSEs	142,156		137,931		26,427		21,207
State and political subdivisions	105,567		94,549		227,888		179,143
Corporate bonds	802		852		—		—
	248,525		233,332		254,315		200,350
Debt securities not due at a single maturity date:
Asset-backed securities	198,279		192,960		—		—
Residential MBS	1,806,004		1,620,235		1,438,048		1,215,805
Commercial MBS	700,722		618,438		686,239		565,408
	2,705,005		2,431,633		2,124,287		1,781,213
Total	$	3,707,102	$	3,359,989	$	2,553,835	$	2,132,396

16

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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 six months ended June 30, 2023 and 2022 (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Proceeds from sales	$	—	$	73,112	$	380,661	$	281,521
Gross realized gains	$	—	$	46	$	1,373	$	1,009
Gross realized losses	—		—		(3,017)		(4,697)
Securities gains (losses), net	$	—	$	46	$	(1,644)	$	(3,688)
Income tax expense (benefit) attributable to sales	$	—	$	11	$	(374)	$	(979)

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).

	June 30, 2023		December 31, 2022
Owner occupied commercial real estate	$	3,110,612	$	2,734,666
Income producing commercial real estate	3,669,746		3,261,626
Commercial & industrial	2,550,191		2,252,322
Commercial construction	1,739,208		1,597,848
Equipment financing	1,510,326		1,374,251
Total commercial	12,580,083		11,220,713
Residential mortgage	2,905,293		2,355,061
HELOC	926,409		850,269
Residential construction	463,278		442,553
Manufactured housing	339,969		316,741
Consumer	179,813		149,290
Total loans	17,394,845		15,334,627
Less allowance for credit losses - loans	(190,705)		(159,357)
Loans, net	$	17,204,140	$	15,175,270

Accrued interest receivable related to loans totaled $58.0 million and $52.0 million at June 30, 2023 and December 31, 2022, respectively, and was reported in other assets on the consolidated balance sheets. Accrued interest receivable was excluded from the estimate of credit losses.

At June 30, 2023 and December 31, 2022, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Guaranteed portion of SBA/USDA loans	$	22,072	$	39,119	$	43,842	$	67,462
Equipment financing receivables	20,571		20,541		39,274		43,977
Total	$	42,643	$	59,660	$	83,116	$	111,439

17

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

At June 30, 2023 and December 31, 2022, equipment financing receivables included leases of $59.8 million and $46.0 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	June 30, 2023		December 31, 2022
Minimum future lease payments receivable	$	65,275	$	49,723
Estimated residual value of leased equipment	3,670		2,804
Initial direct costs	1,131		767
Security deposits	(442)		(429)
Unearned income	(9,788)		(6,877)
Net investment in leases	$	59,846	$	45,988

Minimum future lease payments expected to be received from equipment financing lease contracts as of June 30, 2023 were as follows (in thousands): 

Year
Remainder of 2023	$	11,352
2024	19,503
2025	15,648
2026	10,910
2027	6,564
Thereafter	1,298
Total	$	65,275

18

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Nonaccrual and Past Due Loans

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 June 30, 2023
Owner occupied commercial real estate	$	3,105,295	$	1,842	$	4	$	—	$	3,471	$	3,110,612
Income producing commercial real estate	3,636,300		790		114		—		32,542		3,669,746
Commercial & industrial	2,517,176		1,532		660		—		30,823		2,550,191
Commercial construction	1,738,394		664		35		—		115		1,739,208
Equipment financing	1,494,296		4,087		2,954		—		8,989		1,510,326
Total commercial	12,491,461		8,915		3,767		—		75,940		12,580,083
Residential mortgage	2,889,244		3,408		1,222		—		11,419		2,905,293
HELOC	921,413		2,077		142		—		2,777		926,409
Residential construction	460,627		967		2		—		1,682		463,278
Manufactured housing	320,342		7,311		1,534		—		10,782		339,969
Consumer	178,646		1,063		85		—		19		179,813
Total loans	$	17,261,733	$	23,741	$	6,752	$	—	$	102,619	$	17,394,845
As of December 31, 2022
Owner occupied commercial real estate	$	2,731,574	$	1,522	$	1,047	$	—	$	523	$	2,734,666
Income producing commercial real estate	3,257,232		468		41		—		3,885		3,261,626
Commercial & industrial	2,234,284		3,288		274		6		14,470		2,252,322
Commercial construction	1,597,268		447		—		—		133		1,597,848
Equipment financing	1,362,622		4,285		1,906		—		5,438		1,374,251
Total commercial	11,182,980		10,010		3,268		6		24,449		11,220,713
Residential mortgage	2,342,196		1,939		7		—		10,919		2,355,061
HELOC	844,888		2,709		784		—		1,888		850,269
Residential construction	441,673		20		455		—		405		442,553
Manufactured housing	302,386		6,913		924		—		6,518		316,741
Consumer	148,943		237		48		9		53		149,290
Total loans	$	15,263,066	$	21,828	$	5,486	$	15	$	44,232	$	15,334,627

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

	Nonaccrual Loans
	June 30, 2023						December 31, 2022
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	2,507	$	964	$	3,471	$	276	$	247	$	523
Income producing commercial real estate	32,470		72		32,542		3,798		87		3,885
Commercial & industrial	28,665		2,158		30,823		13,917		553		14,470
Commercial construction	51		64		115		69		64		133
Equipment financing	56		8,933		8,989		85		5,353		5,438
Total commercial	63,749		12,191		75,940		18,145		6,304		24,449
Residential mortgage	1,959		9,460		11,419		2,159		8,760		10,919
HELOC	325		2,452		2,777		430		1,458		1,888
Residential construction	328		1,354		1,682		311		94		405
Manufactured housing	—		10,782		10,782		—		6,518		6,518
Consumer	3		16		19		3		50		53
Total	$	66,364	$	36,255	$	102,619	$	21,048	$	23,184	$	44,232

19

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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 and, for 2023, gross charge-offs by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans by Origination Year												Revolvers		Revolvers converted to term loans		Total
As of June 30, 2023	2023		2022		2021		2020		2019		Prior
Owner occupied commercial real estate:
Pass	$	359,037	$	683,426	$	650,179	$	613,901	$	214,542	$	372,915	$	114,607	$	18,740	$	3,027,347
Special Mention	1,626		5,675		6,968		6,764		8,612		5,260		3,855		268		39,028
Substandard	3,465		8,345		9,095		7,600		3,310		9,471		210		2,741		44,237
Total owner occupied commercial real estate	$	364,128	$	697,446	$	666,242	$	628,265	$	226,464	$	387,646	$	118,672	$	21,749	$	3,110,612
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	207	$	—	$	—	$	207
Income producing commercial real estate:
Pass	$	306,457	$	828,657	$	750,600	$	763,295	$	271,098	$	414,954	$	52,883	$	5,706	$	3,393,650
Special Mention	58,790		22,100		21,311		14,353		31,383		4,974		—		—		152,911
Substandard	22,314		33,196		998		17,216		17,664		31,738		—		59		123,185
Total income producing commercial real estate	$	387,561	$	883,953	$	772,909	$	794,864	$	320,145	$	451,666	$	52,883	$	5,765	$	3,669,746
Current period gross charge-offs	$	—	$	3,033	$	—	$	—	$	—	$	1,781	$	—	$	—	$	4,814
Commercial & industrial
Pass	$	391,898	$	545,473	$	366,189	$	159,719	$	121,611	$	184,837	$	600,042	$	15,490	$	2,385,259
Special Mention	209		478		4,385		476		88		855		18,596		181		25,268
Substandard	21,254		9,594		38,922		13,813		4,264		2,718		46,124		2,975		139,664
Total commercial & industrial	$	413,361	$	555,545	$	409,496	$	174,008	$	125,963	$	188,410	$	664,762	$	18,646	$	2,550,191
Current period gross charge-offs	$	1,330	$	1,132	$	—	$	444	$	198	$	41	$	—	$	1,506	$	4,651
Commercial construction
Pass	$	347,916	$	660,378	$	383,957	$	192,245	$	58,733	$	31,262	$	56,057	$	1,077	$	1,731,625
Special Mention	58		135		28		52		—		—		—		—		273
Substandard	194		4,541		35		2,199		1		100		—		240		7,310
Total commercial construction	$	348,168	$	665,054	$	384,020	$	194,496	$	58,734	$	31,362	$	56,057	$	1,317	$	1,739,208
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equipment financing:
Pass	$	422,344	$	589,302	$	299,127	$	117,201	$	61,859	$	9,413	$	—	$	—	$	1,499,246
Substandard	842		4,497		3,575		1,109		974		83		—		—		11,080
Total equipment financing	$	423,186	$	593,799	$	302,702	$	118,310	$	62,833	$	9,496	$	—	$	—	$	1,510,326
Current period gross charge-offs	$	—	$	3,129	$	3,086	$	895	$	389	$	280	$	—	$	—	$	7,779
Residential mortgage:
Pass	$	446,768	$	988,186	$	758,310	$	337,356	$	90,331	$	266,705	$	477	$	3,516	$	2,891,649
Substandard	214		1,505		1,680		912		1,648		7,499		—		186		13,644
Total residential mortgage	$	446,982	$	989,691	$	759,990	$	338,268	$	91,979	$	274,204	$	477	$	3,702	$	2,905,293
Current period gross charge-offs	$	—	$	23	$	—	$	—	$	—	$	22	$	—	$	—	$	45
Home equity lines of credit
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	26,231	$	923,328
Substandard	—		—		—		—		—		—		—		3,081		3,081
Total home equity lines of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	29,312	$	926,409
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	145	$	145
Residential construction
Pass	$	174,579	$	239,543	$	32,086	$	6,143	$	1,417	$	7,349	$	—	$	31	$	461,148
Substandard	224		1,324		430		—		18		134		—		—		2,130
Total residential construction	$	174,803	$	240,867	$	32,516	$	6,143	$	1,435	$	7,483	$	—	$	31	$	463,278
Current period gross charge-offs	$	—	$	637	$	—	$	—	$	—	$	—	$	—	$	—	$	637
Manufactured housing
Pass	$	35,151	$	74,072	$	52,438	$	46,466	$	33,278	$	86,573	$	—	$	—	$	327,978
Substandard	260		3,304		2,109		1,702		1,090		3,526		—		—		11,991
Total consumer	$	35,411	$	77,376	$	54,547	$	48,168	$	34,368	$	90,099	$	—	$	—	$	339,969
Current period gross charge-offs	$	3	$	434	$	201	$	268	$	105	$	263	$	—	$	—	$	1,274
Consumer
Pass	$	57,267	$	53,898	$	25,280	$	12,381	$	2,263	$	1,977	$	26,518	$	119	$	179,703
Substandard	—		1		60		28		—		21		—		—		110
Total consumer	$	57,267	$	53,899	$	25,340	$	12,409	$	2,263	$	1,998	$	26,518	$	119	$	179,813
Current period gross charge-offs	$	1,838	$	103	$	62	$	24	$	13	$	1	$	2	$	101	$	2,144

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, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	669,451	$	671,395	$	611,900	$	204,990	$	127,738	$	253,890	$	114,975	$	5,779	$	2,660,118
Income producing commercial real estate	812,804		753,936		733,946		248,259		171,108		255,485		50,026		9,953		3,035,517
Commercial & industrial	535,594		388,851		186,292		134,789		119,547		71,503		670,161		15,880		2,122,617
Commercial construction	732,147		391,963		256,087		78,778		11,977		19,973		70,819		1,433		1,563,177
Equipment financing	714,044		374,030		162,463		93,690		22,753		1,214		—		—		1,368,194
Total commercial	3,464,040		2,580,175		1,950,688		760,506		453,123		602,065		905,981		33,045		10,749,623
Residential mortgage	894,960		742,821		329,762		91,300		55,785		223,846		8		3,133		2,341,615
HELOC	—		—		—		—		—		—		824,153		23,948		848,101
Residential construction	344,443		82,289		4,478		1,742		1,545		7,549		—		31		442,077
Manufactured housing	78,097		54,976		48,908		34,836		31,060		61,148		—		—		309,025
Consumer	71,899		29,322		15,406		3,987		1,837		588		25,963		126		149,128
	4,853,439		3,489,583		2,349,242		892,371		543,350		895,196		1,756,105		60,283		14,839,569
Special Mention
Owner occupied commercial real estate	4,236		8,036		4,641		10,299		1,232		11,596		3,875		279		44,194
Income producing commercial real estate	41,423		1,137		44,802		32,821		21,647		50		805		—		142,685
Commercial & industrial	1,695		21,745		2,686		1,047		1,244		167		10,449		309		39,342
Commercial construction	850		33		1,640		13,237		4,891		28		—		—		20,679
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Substandard
Owner occupied commercial real estate	9,835		77		2,873		4,490		1,204		8,055		209		3,611		30,354
Income producing commercial real estate	52,384		1,357		1,867		4,180		13,209		10,365		—		62		83,424
Commercial & industrial	10,431		19,477		3,880		4,557		11,019		1,189		39,333		477		90,363
Commercial construction	133		—		45		2		3,876		9,693		—		243		13,992
Equipment financing	1,625		2,160		1,303		705		236		28		—		—		6,057
Total commercial	74,408		23,071		9,968		13,934		29,544		29,330		39,542		4,393		224,190
Residential mortgage	1,195		964		1,364		1,836		2,589		5,296		—		202		13,446
HELOC	—		—		—		—		—		—		93		2,075		2,168
Residential construction	32		268		—		20		3		153		—		—		476
Manufactured housing	1,130		1,267		1,427		990		1,188		1,714		—		—		7,716
Consumer	20		77		34		1		25		4		1		—		162
	76,785		25,647		12,793		16,781		33,349		36,497		39,636		6,670		248,158
Total	$	4,978,428	$	3,546,181	$	2,415,804	$	966,556	$	605,713	$	943,534	$	1,810,870	$	67,541	$	15,334,627

22

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Modifications to Borrowers Experiencing Financial Difficulty

The period end amortized cost of loans modified under the terms of a FDM during the six months ended June 30, 2023 are presented in the following table (in thousands).

	New FDMs
	Post-Modification Amortized Cost by Type of Modification
	Extension		Payment Delay		Rate Reduction & Extension		Total		% of Total Class of Receivable
Six Months Ended June 30, 2023
Income producing commercial real estate	$	38,138	$	—	$	21,202	$	59,340	1.6	%
Commercial & industrial	2,718		29,517		—		32,235		1.3
Equipment financing	8,069		—		—		8,069		0.5
Residential mortgage	57		—		630		687		—
Manufactured housing	—		—		259		259		0.1
Total loans	$	48,982	$	29,517	$	22,091	$	100,590	0.6

Extensions for equipment financing FDMs typically consist of one or more three-month extensions beyond the original maturity date. For the remainder of extension FDMs occurring during the first six months of 2023, the weighted average extension granted was approximately eight months.

Commercial and industrial payment delay FDMs include $22.7 million of loans in bankruptcy status. Excluding bankruptcy status loans, the remainder of FDMs in this category had a weighted average payment delay of approximately three months.

During the six months ended June 30, 2023, FDMs categorized as rate reduction and extensions in the income producing commercial real estate category resulted in a decrease in weighted average interest rate of 57 basis points and extended the weighted average maturity by 3 years. Residential mortgage and manufactured housing FDMs resulted in a decrease in weighted average interest rate of 576 basis points and extended the weighted average maturity by 15 years.

There have been no FDMs modified during 2023 that have subsequently defaulted under modified loan terms.

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 June 30, 2023 and December 31, 2022, 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 charge-off experience to produce an expected default rate, with the results subject to a floor. In the case of residential construction, commercial construction and multifamily loans (included in income producing commercial real estate), the expected default rate was adjusted by a model overlay based on expectations of future performance. For the second quarter of 2023, management applied qualitative factors to the model output for the residential mortgage, residential construction and income producing commercial real estate portfolios to account for observable differences in national economic trends reflected in the economic forecast that are not being observed at the same level of severity within United’s geographic footprint.

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 most collateral types, 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 for changes in lending practices designed to mitigate the magnitude of losses observed during the 2008 mortgage crisis.

23

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 June 30,
	2023										2022
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	20,831	$	—	$	205	$	752	$	21,788	$	15,945	$	—	$	1,496	$	(667)	$	16,774
Income producing commercial real estate	33,607		(2,033)		849		6,352		38,775		33,539		—		116		(371)		33,284
Commercial & industrial	28,312		(3,753)		1,007		4,290		29,856		18,386		(1,011)		1,313		(421)		18,267
Commercial construction	22,073		—		105		98		22,276		13,782		—		144		2,136		16,062
Equipment financing	26,195		(3,752)		1,215		4,946		28,604		19,264		(1,709)		802		52		18,409
Residential mortgage	24,082		(26)		69		1,306		25,431		14,964		—		51		2,020		17,035
HELOC	10,337		(24)		83		213		10,609		7,128		—		346		13		7,487
Residential construction	2,043		(637)		14		2,026		3,446		1,929		—		76		81		2,086
Manufactured housing	8,424		(620)		—		1,400		9,204		7,083		(135)		—		(334)		6,614
Consumer	630		(1,327)		226		1,187		716		785		(728)		308		542		907
ACL - loans	176,534		(12,172)		3,773		22,570		190,705		132,805		(3,583)		4,652		3,051		136,925
ACL - unfunded commitments	21,389		—		—		183		21,572		13,564		—		—		2,553		16,117
Total ACL	$	197,923	$	(12,172)	$	3,773	$	22,753	$	212,277	$	146,369	$	(3,583)	$	4,652	$	5,604	$	153,042

	Six Months Ended June 30,
	2023												2022
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Initial ACL - PCD loans (1)		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	19,834	$	181	$	(207)	$	322	$	1,658	$	21,788	$	14,282	$	266	$	—	$	1,541	$	685	$	16,774
Income producing commercial real estate	32,082		307		(4,814)		1,324		9,876		38,775		24,156		4,366		—		406		4,356		33,284
Commercial & industrial	23,504		1,358		(4,651)		1,680		7,965		29,856		16,592		2,337		(4,605)		1,978		1,965		18,267
Commercial construction	20,120		39		—		142		1,975		22,276		9,956		2,857		(41)		558		2,732		16,062
Equipment financing	23,395		—		(7,779)		1,867		11,121		28,604		16,290		—		(2,657)		1,483		3,293		18,409
Residential mortgage	20,809		157		(45)		175		4,335		25,431		12,390		385		(53)		201		4,112		17,035
HELOC	8,707		534		(145)		171		1,342		10,609		6,568		60		(9)		436		432		7,487
Residential construction	2,049		124		(637)		29		1,881		3,446		1,847		1		—		99		139		2,086
Manufactured housing	8,098		—		(1,274)		26		2,354		9,204		—		2,438		(308)		9		4,475		6,614
Consumer	759		4		(2,144)		477		1,620		716		451		27		(1,534)		587		1,376		907
ACL - loans	159,357		2,704		(21,696)		6,213		44,127		190,705		102,532		12,737		(9,207)		7,298		23,565		136,925
ACL - unfunded commitments	21,163		—		—		—		409		21,572		10,992		—		—		—		5,125		16,117
Total ACL	$	180,520	$	2,704	$	(21,696)	$	6,213	$	44,536	$	212,277	$	113,524	$	12,737	$	(9,207)	$	7,298	$	28,690	$	153,042

(1) Represents the initial ACL related to PCD loans acquired in the Progress and Reliant transactions during the six months ended June 30, 2023 and 2022, respectively.

24

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):

	June 30, 2023						December 31, 2022
	Notional Amount (1)		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	$	16,261	$	—	$	100,000	$	16,191	$	—
Cash flow hedge of trust preferred securities	40,000		—		—		20,000		—		—
Fair value hedge of AFS debt securities	677,473		—		—		—		—		—
Total	817,473		16,261		—		120,000		16,191		—
Derivatives not designated as hedging instruments:
Customer derivative positions	2,034,468		874		91,307		1,097,578		341		86,358
Dealer offsets to customer derivative positions	1,803,106		29,360		901		1,097,578		22,393		274
Risk participations	130,392		—		22		88,586		15		1
Mortgage banking - loan commitment	48,090		991		2		19,685		394		—
Mortgage banking - forward sales commitment	100,140		383		14		49,750		198		71
Bifurcated embedded derivatives	51,935		10,881		—		51,935		11,104		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		12,540		51,935		—		12,839
Total	4,220,066		42,489		104,786		2,457,047		34,445		99,543
Total derivatives	$	5,037,539	$	58,750	$	104,786	$	2,577,047	$	50,636	$	99,543
Total gross derivative instruments			$	58,750	$	104,786			$	50,636	$	99,543
Less: Amounts subject to master netting agreements			(916)		(916)				(346)		(346)
Less: Cash collateral received/pledged			(46,248)		(12,801)				(38,386)		(13,089)
Net amount			$	11,586	$	91,069			$	11,904	$	86,108

(1) At June 30, 2023, LIBOR-based customer derivative positions and derivatives cleared centrally through the CME included both a short-dated contract and a long-dated contract to facilitate the transition from LIBOR to SOFR. The short-dated contracts mature at the first reset date after June 30, 2023.

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 June 30, 2023 and December 31, 2022, 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 $5.55 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 investments and 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

25

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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. During the second quarter of 2023, United entered into fair value hedges on stated amounts of closed portfolios of AFS debt securities using the portfolio layer method.

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

	Affected Income Statement Line Item	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Fair value hedges:
Brokered time deposits:
Net income recognized	Interest expense- deposits	$	—	$	—	$	—	$	28
AFS securities:
Recognized on derivative interest settlements		$	2,310	$	—	$	2,310	$	—
Recognized on derivatives		13,889		—		13,889		—
Recognized on hedged items		(15,289)		—		(15,289)		—
Net income recognized	Interest revenue- investment securities	$	910	$	—	$	910	$	—
Cash flow hedges:
Long-term debt (1)	Interest expense- long term debt	$	1,234	$	(106)	$	2,056	$	(247)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $112,000 and $118,000 for the three months ended June 30, 2023 and 2022, respectively, and $229,000 and $234,000 for the six months ended June 30, 2023 and 2022, respectively.

The table below presents the carrying amount of hedged AFS debt securities and cumulative fair value hedging adjustments included in the carrying amount of the hedged asset for the periods presented (in thousands). All fair value hedges of AFS debt securities at June 30, 2023 were designated under the the portfolio layer method. At June 30, 2023, the aggregate designated hedged items using the portfolio layer method had a notional amount of $677 million.

	June 30, 2023
Balance Sheet Location	Amortized Cost(1)		Hedge Accounting Basis Adjustment
Debt securities AFS	$	804,658	$	(15,289)

(1) Excludes cumulative hedge accounting basis adjustment.

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 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. 

26

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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 June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Customer derivatives and dealer offsets	Other noninterest income	$	545	$	445	$	912	$	1,214
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(474)		85		(1,007)		198
Mortgage banking derivatives	Mortgage loan revenue	174		2,616		1,401		7,250
Risk participations	Other noninterest income	154		93		142		94
		$	399	$	3,239	$	1,448	$	8,756

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.

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).  

	June 30, 2023		December 31, 2022
Core deposit intangible	$	86,880	$	46,900
Less: accumulated amortization	(32,665)		(26,112)
Net core deposit intangible	54,215		20,788
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(1,510)		(1,114)
Net customer relationship intangible	6,890		7,286
Total intangibles subject to amortization, net (1)	61,105		28,074
Goodwill	896,718		751,174
Total goodwill and other intangible assets, net	$	957,823	$	779,248

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

During the first quarter of 2023, as a result of the Progress acquisition, United recorded a core deposit intangible of $40.0 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance, beginning of period (1)	$	896,718	$	751,174	$	751,174	$	452,007
Acquisitions	—		—		145,544		299,167
Balance, end of period (1)	$	896,718	$	751,174	$	896,718	$	751,174

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2022.

27

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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

Remainder of 2023	$	6,521
2024	11,791
2025	10,031
2026	8,491
2027	6,950
Thereafter	17,321
Total	$	61,105

Note 9 – Preferred Stock

In May 2023, United’s Board of Directors approved a preferred stock repurchase program, authorizing United to repurchase up to $25.0 million of its outstanding Series I Non-Cumulative Preferred Stock directly or through the repurchase of depositary shares representing 1/1000th of a share of Series I Non-Cumulative Preferred Stock. The program is scheduled to expire on the earlier of the repurchase of preferred stock having an aggregate purchase price of $25.0 million or December 31, 2023. During the three and six months ended June 30, 2023, 10,668 depositary shares were repurchased. As of June 30, 2023, United had remaining authorization to repurchase up to $24.8 million of outstanding preferred stock under the program.

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 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.

28

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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. As of December 31, 2022, United had certain mortgage loans held for sale that were acquired from Reliant for which the fair value option was not elected; these loans were carried at the lower of aggregate cost or fair value. These loans were subsequently sold during the first half of 2023.

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 when 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.

29

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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).

June 30, 2023	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	333,423	$	—	$	—	$	333,423
U.S. Government agencies & GSEs	—		237,096		—		237,096
State and political subdivisions	—		161,101		—		161,101
Residential MBS	—		1,620,235		—		1,620,235
Commercial MBS	—		618,438		—		618,438
Corporate bonds	—		194,553		2,183		196,736
Asset-backed securities	—		192,960		—		192,960
Equity securities with readily determinable fair values	10,651		1,532		—		12,183
Mortgage loans held for sale	—		27,104		—		27,104
Deferred compensation plan assets	11,728		—		—		11,728
Servicing rights for SBA/USDA loans	—		—		6,148		6,148
Residential mortgage servicing rights	—		—		37,194		37,194
Derivative financial instruments	—		46,878		11,872		58,750
Total assets	$	355,802	$	3,099,897	$	57,397	$	3,513,096
Liabilities:
Deferred compensation plan liability	$	11,766	$	—	$	—	$	11,766
Derivative financial instruments	—		92,222		12,564		104,786
Total liabilities	$	11,766	$	92,222	$	12,564	$	116,552

December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	149,352	$	—	$	—	$	149,352
U.S. Government agencies & GSEs	—		250,116		—		250,116
State and political subdivisions	—		303,748		—		303,748
Residential MBS	—		1,795,481		—		1,795,481
Commercial MBS	—		671,912		—		671,912
Corporate bonds	—		210,240		2,212		212,452
Asset-backed securities	—		231,272		—		231,272
Equity securities with readily determinable fair values	12,278		1,359		—		13,637
Mortgage loans held for sale	—		11,794		—		11,794
Deferred compensation plan assets	11,436		—		—		11,436
Servicing rights for SBA/USDA loans	—		—		5,188		5,188
Residential mortgage servicing rights	—		—		36,559		36,559
Derivative financial instruments	—		39,123		11,513		50,636
Total assets	$	173,066	$	3,515,045	$	55,472	$	3,743,583
Liabilities:
Deferred compensation plan liability	$	11,460	$	—	$	—	$	11,460
Derivative financial instruments	—		86,703		12,840		99,543
Total liabilities	$	11,460	$	86,703	$	12,840	$	111,003

30

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).

	2023										2022
	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 June 30,
Beginning balance	$	11,348	$	11,195	$	6,289	$	36,081	$	2,227	$	7,902	$	8,531	$	6,962	$	32,641	$	2,332
Additions	—		167		464		848		—		—		99		800		1,723		—
Sales and settlements	—		—		(231)		(496)		—		—		(1)		(408)		(638)		—
Fair value adjustments included in OCI	—		—		—		—		(44)		—		—		—		—		(45)
Fair value adjustments included in earnings	524		1,202		(374)		761		—		2,297		2,166		(1,187)		1,405		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287
Six Months Ended June 30,
Beginning balance	$	11,513	$	12,840	$	5,188	$	36,559	$	2,212	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395
Business combinations	—		—		95		—		—		—		—		—		—		—
Additions	—		170		924		1,480		—		—		99		1,388		3,890		—
Transfers from Level 3	—		—		—		—		—		(290)		—		—		—		—
Sales and settlements	(11)		—		(451)		(948)		—		—		(1)		(637)		(1,314)		—
Fair value adjustments included in OCI	—		—		—		—		(29)		—		—		—		—		(108)
Fair value adjustments included in earnings	370		(446)		392		103		—		3,731		5,649		(1,097)		7,394		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287

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	June 30, 2023			December 31, 2022
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	8.0% - 25.0%	13.2	%	11.9% - 25.0%	17.5	%
		Prepayment rate	0.4 - 35.4	16.9		0.0 - 35.4	16.4
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 11.5	9.5
		Prepayment rate	7.0 - 29.5	7.7		7.0 - 31.2	7.5
Corporate bonds	Discounted cash flow	Discount rate	6.6 - 7.2	6.9		6.1 - 6.4	6.3
Derivative assets - mortgage	Internal model	Pull through rate	60.0 - 100	89.4		26.5 - 100	90.7
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
	June 30, 2023		December 31, 2022
Outstanding principal balance	$	26,520	$	11,473
Fair value	27,104		11,794

31

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Mortgage loan gains and other related fees	$	33	$	163	$	264	$	(1,011)

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 June 30, 2023 and December 31, 2022, 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
June 30, 2023
Loans held for investment	$	—	$	—	$	31,148	$	31,148
December 31, 2022
Loans held for investment	$	—	$	—	$	7,808	$	7,808
Mortgage loans held for sale	—		—		1,806		1,806

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 December 31, 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. These loans were subsequently sold during the first half of 2023.

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

32

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

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
June 30, 2023
Assets:
HTM debt securities	$	2,553,835	$	17,495	$	2,114,901	$	—	$	2,132,396
Loans and leases, net	17,204,140		—		—		16,591,141		16,591,141
Liabilities:
Deposits	22,251,988		—		22,245,777		—		22,245,777
Long-term debt	324,754		—		—		304,481		304,481
December 31, 2022
Assets:
HTM debt securities	$	2,613,648	$	17,417	$	2,173,656	$	—	$	2,191,073
Loans and leases, net	15,175,270		—		—		14,609,239		14,609,239
Liabilities:
Deposits	19,876,507		—		19,863,380		—		19,863,380
FHLB advances	550,000		—		—		549,913		549,913
Long-term debt	324,663		—		—		313,380		313,380

33

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 June 30, 2023, 2.51 million additional awards could be granted under the plan.

The table below presents restricted stock unit and option activity for the six months ended June 30, 2023.

	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, 2022	778,686	$	28.28			40,338	$	11.88
Granted	292,631	30.33				643,298	20.91
Released / Exercised	(121,277)	27.18		$	3,855	(164,864)	17.96			$	1,584
Cancelled	(27,980)	28.51				(4,620)	25.97
Outstanding at June 30, 2023	922,060	29.07		23,042		514,152	21.10		5.6	2,082
Vested / Exercisable at June 30, 2023	—	—				514,152	21.10		5.6	2,082

Options granted in 2023 reflect fully vested options assumed in the Progress acquisition, with the weighted average exercise price of Progress’ fully vested converted options determined pursuant to the purchase agreement. The value of the Progress 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 six months ended June 30, 2023 and 2022.

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 six months ended June 30, 2023 and 2022, expense of $4.46 million and $4.62 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 six months ended June 30, 2023 and 2022, $331,000 and $238,000, 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 $1.22 million and $1.24 million was included in the determination of income tax expense for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $20.2 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 2.4 years.

34

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 June 30,				Six Months Ended June 30,				Affected Line Item in the Statement Where Net Income is Presented
	2023		2022		2023		2022
Realized losses on AFS securities:
	$	—	$	46	$	(1,644)	$	(3,688)	Securities gains (losses), net
	—		(11)		374		979		Income tax (expense) benefit
	$	—	$	35	$	(1,270)	$	(2,709)	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(2,518)	$	(1,769)	$	(5,486)	$	(1,769)	Investment securities interest revenue
	604		422		1,324		422		Income tax benefit
	$	(1,914)	$	(1,347)	$	(4,162)	$	(1,347)	Net of tax
Reclassifications related to derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	1,234	$	(106)	$	2,056	$	(247)	Long-term debt interest expense
	(315)		27		(525)		63		Income tax (expense) benefit
	$	919	$	(79)	$	1,531	$	(184)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(61)	$	(93)	$	(122)	$	(185)	Salaries and employee benefits expense
Actuarial losses	—		(78)		—		(156)		Other expense
	(61)		(171)		(122)		(341)		Total before tax
	15		44		31		87		Income tax benefit
	$	(46)	$	(127)	$	(91)	$	(254)	Net of tax
Total reclassifications for the period	$	(1,041)	$	(1,518)	$	(3,992)	$	(4,494)	Net of tax

35

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	63,288	$	66,842	$	125,588	$	114,861
Dividends on preferred stock	(1,719)		(1,719)		(3,438)		(3,438)
Earnings allocated to participating securities	(342)		(362)		(680)		(596)
Net income available to common shareholders	$	61,227	$	64,761	$	121,470	$	110,827
Weighted average shares outstanding:
Basic	115,774		106,610		115,614		106,580
Effect of dilutive securities:
Stock options	95		36		166		41
Restricted stock units	—		70		15		76
Diluted	115,869		106,716		115,795		106,697
Net income per common share:
Basic	$	0.53	$	0.61	$	1.05	$	1.04
Diluted	$	0.53	$	0.61	$	1.05	$	1.04

At June 30, 2023, United excluded from the above analysis 78,412 potentially dilutive shares of common stock issuable upon exercise of stock options because of their antidilutive effect. At June 30, 2022, United had no potentially dilutive instruments outstanding that were not included in the above analysis.

Note 14 – Regulatory Matters

As of June 30, 2023, 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 June 30, 2023, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

Regulatory capital ratios at June 30, 2023 and December 31, 2022, 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		June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.19		%	12.26		%	12.42		%	12.83		%
Tier 1 capital	6.0		8.0		12.69			12.81			12.42			12.83
Total capital	8.0		10.0		14.57			14.79			13.39			13.70
Leverage ratio	4.0		5.0		9.79			9.69			9.56			9.69
CET1 capital					$	2,366,637		$	2,164,211		$	2,400,649		$	2,255,337
Tier 1 capital					2,462,802			2,260,633			2,400,649			2,255,337
Total capital					2,827,580			2,610,216			2,589,591			2,408,895
Risk-weighted assets					19,409,980			17,648,573			19,335,994			17,583,347
Average total assets for the leverage ratio					25,160,884			23,322,018			25,120,784			23,285,253

(1) As of June 30, 2023 and December 31, 2022 the additional capital conservation buffer in effect was 2.50%

36

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).

	June 30, 2023		December 31, 2022
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,755,317	$	4,683,790
Letters of credit	55,652		46,896

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.

Tax Credit and Certain Equity Investments

United invests in certain LIHTC partnerships throughout its market area as a means of supporting local communities, as well as in entities that promote renewable energy sources. United receives tax credits related to these investments. For certain of the investments, United provides financing during the construction and development phase of the related projects and/or permanent financing upon completion of the project. United has concluded that these partnerships are VIEs of which it is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact the VIEs' financial performance and, therefore, is not required to consolidate these VIEs. United's maximum potential exposure to losses relative to investments in these VIEs is generally limited to the sum of the outstanding investment balance, any future funding commitments and the balance of any related loans to the entity. Loans to these entities are underwritten in substantially the same manner as other loans and are generally secured.

United also has investments in and future funding commitments related to fintech fund limited partnerships, other community development entities and certain other equity method investments. United has concluded that these partnerships are VIEs of which it is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact the VIEs' financial performance and, therefore, is not required to consolidate these VIEs. The risk exposure relating to such commitments is generally limited to the amount invested by United and any future funding commitments.

The following table summarizes, as of the dates indicated, tax credit and certain equity method investments (in thousands):

	Balance Sheet Location	June 30, 2023		December 31, 2022
Investments in LIHTC:
Carrying amount	Other assets	$	52,112	$	50,054
Amount of future funding commitments included in carrying amount	Other liabilities	15,292		18,090
Renewable energy investments:
Carrying amount	Other assets	39,737		19,617
Amount of future funding commitments included in carrying amount	Other liabilities	20,360		18,781
Fintech funds and certain other equity method investments:
Carrying amount	Other assets	32,722		27,569
Amount of future funding commitments included in carrying amount	Other liabilities	470		470
Amount of future funding commitments not included in carrying amount	N/A	26,568		23,690

37

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Note 16 - Subsequent Events

Acquisition of First Miami

Subsequent to quarter-end, on July 1, 2023, United acquired all of the outstanding common stock of First Miami in a stock transaction. First Miami is headquartered in South Miami, Florida, and operates three offices in the Miami metropolitan area. As of June 30, 2023, First Miami had total assets of $992 million, total loans of $618 million, and total deposits of $836 million. In addition to traditional banking products, First Miami offers private banking, trust and wealth management with approximately $308 million in assets under administration as of June 30, 2023.

First Miami shareholders received 3.5 million shares of United common stock valued at $87.7 million. The acquisition will be accounted for as a business combination. Due to the timing of the acquisition, United is currently in the process of completing the purchase accounting and has not made all of the remaining required disclosures, such as the fair value of assets acquired and supplemental pro forma information, which will be disclosed in subsequent filings.

Preferred Share Repurchases

Subsequent to quarter-end through August 3, 2023, United repurchased 167,322 depositary shares of preferred stock totaling $3.45 million through its preferred stock repurchase program. As of August 3, 2023, United had remaining authorization to repurchase up to $21.3 million of outstanding preferred stock under the program.

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 June 30, 2023 and December 31, 2022 and our results of operations for the three and six months ended June 30, 2023 and 2022. 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 2022 10-K and referenced in Part II, Item 1.A. of this Report, and the other reports we have filed with the SEC after we filed the 2022 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 209 branch network throughout Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. We have grown organically as well as through strategic acquisitions. At June 30, 2023, we had consolidated total assets of $26.1 billion and 3,064 full-time equivalent employees.

Recent Developments

Mergers and Acquisitions

On January 3, 2023, we completed the acquisition of Progress, which operated 13 offices primarily located in Alabama and the Florida Panhandle. We acquired $1.90 billion of assets and assumed $1.60 billion of liabilities in the acquisition, which included $1.44 billion in loans and $1.33 billion in deposits. Progress results are included in the consolidated financial statements beginning on the acquisition date.

Subsequent to the current reporting period, on July 1, 2023, we completed the acquisition of First Miami, which was headquartered in South Miami, Florida and operated 3 offices in the Miami metropolitan area. As of June 30, 2023, First Miami had total assets of $992 million, total loans of $618 million, and total deposits of $836 million. In addition to traditional banking products, First Miami offers private banking, trust and wealth management with approximately $308 million in assets under administration as of June 30, 2023. The financial statement impact of the First Miami acquisition will be reflected in our consolidated financial statements starting in the third quarter of 2023.

Discontinuance of LIBOR

In preparation for the discontinuance of LIBOR effective immediately after June 30, 2023, our new adjustable rate loan production has been originated with an ARR, such as SOFR. However, LIBOR continues to remain the reference rate in a significant number of our outstanding debt securities, loans, derivatives and long-term debt, and in certain other assets and liabilities. Effective with the first rate reset with a reference date after June 30, 2023, these instruments will convert to an ARR, such as SOFR.

Results of Operations

We reported net income and diluted earnings per common share of $63.3 million and $0.53, respectively, for the second quarter of 2023 compared to $66.8 million and $0.61, respectively, for the same period in 2022. Operating net income (non-GAAP), which excludes merger-related and other charges, was $66.1 million for the second quarter of 2023, compared to $72.4 million for the same period in 2022. The decrease in net income resulted primarily from higher expenses and an increase in provision for credit losses partly offset by higher net interest revenue and noninterest income.

Net interest revenue increased to $200 million for the second quarter of 2023, compared to $179 million for the second quarter of 2022. The increase in interest revenue was provided by loan growth, including loans acquired from Progress, and higher interest rates earned on our average loan and securities portfolios. The increase in interest revenue was partially offset by increases in interest expense resulting from higher rates paid on deposits, a less favorable deposit mix and utilization of wholesale borrowings, which are more costly than customer deposits. Our net interest spread decreased 61 basis points to 2.47%, reflecting a steeper increase in rates paid on deposits compared to that of loans since the second quarter of 2022. However, loan growth more than offset the impact of the rising deposit rates on our net interest margin, which increased to 3.37% for the second quarter of 2023 compared to 3.19% for the same period of last year.

We recorded a provision for credit losses of $22.8 million for the second quarter of 2023, compared to a provision of $5.60 million for the second quarter of 2022. The provision expense recorded in the second quarter of 2023 resulted from loan growth, current period

39

net charge offs of $8.40 million and a less favorable current economic forecast for the commercial real estate price index compared to that as of the prior quarter-end.

Noninterest income of $36.4 million for the second quarter of 2023 was up $2.93 million, or 9%, from the second quarter of 2022. The increase was driven by unrealized gains on other investments compared to losses in the same period of 2022, a more favorable negative fair value adjustment on our SBA loan servicing asset and a gain on sale of a commercial insurance book of business of $1.59 million. These increases were partially offset by a decrease in gains on sales of other loans as we sold fewer loans compared to the same period of 2022.

For the second quarter of 2023, noninterest expenses of $132 million increased $11.6 million, or 10%, compared to the same period of 2022. The increase was primarily attributable to a $7.02 million increase in salaries and employee benefits, mostly driven by the addition of Progress employees. Other contributors to the increase included increases in FDIC assessment expense and amortization of intangibles, which was driven by the addition of the Progress core deposit intangible.

For the six months ended June 30, 2023 and 2022, we reported net income of $126 million and $115 million, respectively, and diluted earnings per common share of $1.05 and $1.04, respectively. Operating net income (non-GAAP) for the six months ended June 30, 2023 and 2022 was $135 million and $127 million, respectively, which excludes merger-related and other charges for both periods. Net interest revenue and net interest margin for the six months ended June 30, 2023 were $412 million and 3.49%, respectively, compared to $343 million and 3.08%, respectively, for the same period in 2022. In addition to the factors affecting the second quarter of 2023, results of operations for the six months ended June 30, 2023 include a reduction in mortgage loan gains and other related fees of $12.0 million driven by a decrease in demand resulting from the rising interest rate environment. In addition, provision expense for the six months ended June 30, 2023 and 2022 included initial provisions for credit losses on non-PCD loans and unfunded commitments acquired from Progress and Reliant of $10.4 million and $18.3 million, respectively.

Results for the second quarter and first six months of 2023 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 2022 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)
	2023						2022									Second Quarter 2023 - 2022 Change		For the Six Months Ended June 30,						YTD Change
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter					2023			2022
INCOME SUMMARY
Interest revenue	$	295,775		$	279,487		$	240,831		$	213,887		$	187,378				$	575,262		$	358,437
Interest expense	95,489			68,017			30,943			14,113			8,475					163,506			15,742
Net interest revenue	200,286			211,470			209,888			199,774			178,903			12	%	411,756			342,695			20	%
Provision for credit losses	22,753			21,783			19,831			15,392			5,604					44,536			28,690
Noninterest income	36,387			30,209			33,354			31,922			33,458			9		66,596			72,431			(8)
Total revenue	213,920			219,896			223,411			216,304			206,757			3		433,816			386,436			12
Noninterest expenses	132,407			139,805			117,329			112,755			120,790			10		272,212			240,065			13
Income before income tax expense	81,513			80,091			106,082			103,549			85,967			(5)		161,604			146,371			10
Income tax expense	18,225			17,791			24,632			22,388			19,125			(5)		36,016			31,510			14
Net income	63,288			62,300			81,450			81,161			66,842			(5)		125,588			114,861			9
Merger-related and other charges	3,645			8,631			1,470			1,746			7,143					12,276			16,159
Income tax benefit of merger-related and other charges	(820)			(1,955)			(323)			(385)			(1,575)					(2,775)			(3,538)
Net income - operating (1)	$	66,113		$	68,976		$	82,597		$	82,522		$	72,410		(9)		$	135,089		$	127,482		6
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP	$	0.53		$	0.52		$	0.74		$	0.74		$	0.61		(13)		$	1.05		$	1.04		1
Diluted net income - operating (1)	0.55			0.58			0.75			0.75			0.66			(17)		1.13			1.16			(3)
Cash dividends declared	0.23			0.23			0.22			0.22			0.21			10		0.46			0.42			10
Book value	25.98			25.76			24.38			23.78			23.96			8		25.98			23.96			8
Tangible book value (3)	17.83			17.59			17.13			16.52			16.68			7		17.83			16.68			7
Key performance ratios:
Return on common equity - GAAP (2)(4)	7.47		%	7.34		%	10.86		%	11.02		%	9.31		%			7.41		%	8.07		%
Return on common equity - operating (1)(2)(4)	7.82			8.15			11.01			11.21			10.10					7.98			8.98
Return on tangible common equity - operating (1)(2)(3)(4)	11.35			11.63			15.20			15.60			14.20					11.49			12.62
Return on assets - GAAP (4)	0.95			0.95			1.33			1.32			1.08					0.95			0.93
Return on assets - operating (1)(4)	1.00			1.06			1.35			1.34			1.17					1.03			1.03
Net interest margin (FTE) (4)	3.37			3.61			3.76			3.57			3.19					3.49			3.08
Efficiency ratio - GAAP	55.71			57.20			47.95			48.41			56.58					56.46			57.00
Efficiency ratio - operating (1)	54.17			53.67			47.35			47.66			53.23					53.92			53.16
Equity to total assets	11.89			11.90			11.25			11.12			10.95					11.89			10.95
Tangible common equity to tangible assets (3)	8.21			8.17			7.88			7.70			7.59					8.21			7.59
ASSET QUALITY
NPAs	$	103,737		$	73,403		$	44,281		$	35,511		$	34,428		201		$	103,737		$	34,428		201
ACL - loans	190,705			176,534			159,357			148,502			136,925			39		190,705			136,925			39
Net charge-offs (recoveries)	8,399			7,084			6,611			1,134			(1,069)					15,483			1,909
ACL - loans to loans	1.10		%	1.03		%	1.04		%	1.00		%	0.94		%			1.10		%	0.94		%
Net charge-offs (recoveries) to average loans (4)	0.20			0.17			0.17			0.03			(0.03)					0.18			0.03
NPAs to total assets	0.40			0.28			0.18			0.15			0.14					0.40			0.14
AT PERIOD END ($ in millions)
Loans	$	17,395		$	17,125		$	15,335		$	14,882		$	14,541		20		$	17,395		$	14,541		20
Investment securities	5,914			5,915			6,228			6,539			6,683			(12)		5,914			6,683			(12)
Total assets	26,120			25,872			24,009			23,688			24,213			8		26,120			24,213			8
Deposits	22,252			22,005			19,877			20,321			20,873			7		22,252			20,873			7
Shareholders’ equity	3,106			3,078			2,701			2,635			2,651			17		3,106			2,651			17
Common shares outstanding (thousands)	115,266			115,152			106,223			106,163			106,034			9		115,266			106,034			9

(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)
	2023						2022									For the Six Months Ended June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2023			2022
Noninterest expense reconciliation
Noninterest expenses (GAAP)	$	132,407		$	139,805		$	117,329		$	112,755		$	120,790		$	272,212		$	240,065
Merger-related and other charges	(3,645)			(8,631)			(1,470)			(1,746)			(7,143)			(12,276)			(16,159)
Noninterest expenses - operating	$	128,762		$	131,174		$	115,859		$	111,009		$	113,647		$	259,936		$	223,906
Net income reconciliation
Net income (GAAP)	$	63,288		$	62,300		$	81,450		$	81,161		$	66,842		$	125,588		$	114,861
Merger-related and other charges	3,645			8,631			1,470			1,746			7,143			12,276			16,159
Income tax benefit of merger-related and other charges	(820)			(1,955)			(323)			(385)			(1,575)			(2,775)			(3,538)
Net income - operating	$	66,113		$	68,976		$	82,597		$	82,522		$	72,410		$	135,089		$	127,482
Diluted income per common share reconciliation
Diluted income per common share (GAAP)	$	0.53		$	0.52		$	0.74		$	0.74		$	0.61		$	1.05		$	1.04
Merger-related and other charges, net of tax	0.02			0.06			0.01			0.01			0.05			0.08			0.12
Diluted income per common share - operating	$	0.55		$	0.58		$	0.75		$	0.75		$	0.66		$	1.13		$	1.16
Book value per common share reconciliation
Book value per common share (GAAP)	$	25.98		$	25.76		$	24.38		$	23.78		$	23.96		$	25.98		$	23.96
Effect of goodwill and other intangibles	(8.15)			(8.17)			(7.25)			(7.26)			(7.28)			(8.15)			(7.28)
Tangible book value per common share	$	17.83		$	17.59		$	17.13		$	16.52		$	16.68		$	17.83		$	16.68
Return on tangible common equity reconciliation
Return on common equity (GAAP)	7.47		%	7.34		%	10.86		%	11.02		%	9.31		%	7.41		%	8.07		%
Merger-related and other charges, net of tax	0.35			0.81			0.15			0.19			0.79			0.57			0.91
Return on common equity - operating	7.82			8.15			11.01			11.21			10.10			7.98			8.98
Effect of goodwill and other intangibles	3.53			3.48			4.19			4.39			4.10			3.51			3.64
Return on tangible common equity - operating	11.35		%	11.63		%	15.20		%	15.60		%	14.20		%	11.49		%	12.62		%
Return on assets reconciliation
Return on assets (GAAP)	0.95		%	0.95		%	1.33		%	1.32		%	1.08		%	0.95		%	0.93		%
Merger-related and other charges, net of tax	0.05			0.11			0.02			0.02			0.09			0.08			0.10
Return on assets - operating	1.00		%	1.06		%	1.35		%	1.34		%	1.17		%	1.03		%	1.03		%
Efficiency ratio reconciliation
Efficiency ratio (GAAP)	55.71		%	57.20		%	47.95		%	48.41		%	56.58		%	56.46		%	57.00		%
Merger-related and other charges	(1.54)			(3.53)			(0.60)			(0.75)			(3.35)			(2.54)			(3.84)
Efficiency ratio - operating	54.17		%	53.67		%	47.35		%	47.66		%	53.23		%	53.92		%	53.16		%
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP)	11.89		%	11.90		%	11.25		%	11.12		%	10.95		%	11.89		%	10.95		%
Effect of goodwill and other intangibles	(3.31)			(3.36)			(2.97)			(3.01)			(2.96)			(3.31)			(2.96)
Effect of preferred equity	(0.37)			(0.37)			(0.40)			(0.41)			(0.40)			(0.37)			(0.40)
Tangible common equity to tangible assets	8.21		%	8.17		%	7.88		%	7.70		%	7.59		%	8.21		%	7.59		%

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:

FTE net interest revenue for the second quarter of 2023 was $201 million, representing an increase of $21.2 million, or 12%, from the same period in 2022. The increase was primarily driven by the $2.78 billion increase in average loans provided by the addition of the Progress loan portfolio in the first quarter as well as organic growth. As a result, loan interest revenue increased $95.3 million compared to the second quarter of 2022, which included a $1.06 million increase in purchased loan accretion and reflects interest revenue on approximately $1.44 billion in loans from the Progress acquisition and higher interest rates. The FOMC raised the targeted federal funds rate a total of 500 basis points beginning in March 2022 through the second quarter of 2023. Rising interest rates lifted the yield on the loan portfolio by 152 basis points to 5.85% in the second quarter of 2023 compared with the same period a year ago. Additionally, the increase in yield earned on the securities portfolio, partially offset by a decrease in the average balance of the portfolio, contributed $10.4 million in additional FTE interest revenue compared to the same period of last year.

Interest expense for the second quarter of 2023 increased $87.0 million compared to the same quarter of 2022. The increase is mostly attributable to the 229 basis point increase in rates paid on average deposits as a result of the rising interest rate environment and a deposit mix more heavily comprised of more costly time deposits. In addition, the daily average balance of interest-bearing deposits increased by $1.97 billion, which includes approximately $907 million of interest-bearing deposits received in the acquisition of Progress. We also utilized FHLB advances and repurchase agreements to fund loan growth during the second quarter of 2023, with a total daily average balance of $196 million resulting in additional interest expense of $2.50 million compared with $66,000 of daily average balances outstanding in the second quarter of 2022. We also saw attrition in our noninterest-bearing deposit balances as rising interest rates offered customers more attractive alternatives.

Our net interest spread decreased 61 basis points to 2.47%, reflecting a steeper increase in rates paid on deposits compared to that of loans during the second quarter of 2023. However, loan growth combined with the increase in rates earned on loans more than offset the impact of the rising deposit rates on our net interest margin, which increased to 3.37% for the second quarter of 2023 compared to 3.19% for the same period of last year.

For the six months ended:

FTE net interest revenue for the first six months of 2023 was $414 million, representing a 20% increase from the first six months of 2022, which was primarily driven by the same factors impacting the quarter. During the first six months of 2023, our net interest spread decreased 32 basis points and our net interest margin increased by 41 basis points compared to the same period of 2022.

43

Table 2 - Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended June 30,

(dollars in thousands, (FTE))

	2023						2022
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	17,166,129	$	250,472	5.85	%	$	14,382,324	$	155,184	4.33	%
Taxable securities (3)	5,956,193		39,329		2.64		6,436,992		27,886		1.73
Tax-exempt securities (FTE) (1)(3)	369,364		2,323		2.52		490,659		3,410		2.78
Federal funds sold and other interest-earning assets	461,022		4,658		4.05		1,302,935		2,066		0.64
Total interest-earning assets (FTE)	23,952,708		296,782		4.97		22,612,910		188,546		3.34
Noninterest-earning assets:
Allowance for credit losses	(181,769)						(135,392)
Cash and due from banks	251,691						203,291
Premises and equipment	345,771						286,417
Other assets (3)	1,500,827						1,286,107
Total assets	$	25,869,228					$	24,253,333
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	4,879,591	27,597		2.27		$	4,561,162	2,163		0.19
Money market	5,197,789		33,480		2.58		5,019,420		1,515		0.12
Savings	1,306,394		702		0.22		1,496,414		87		0.02
Time	2,976,482		22,471		3.03		1,671,632		491		0.12
Brokered time deposits	423,536		4,967		4.70		65,081		46		0.28
Total interest-bearing deposits	14,783,792		89,217		2.42		12,813,709		4,302		0.13
Federal funds purchased and other borrowings	145,233		1,849		5.11		66		—		—
Federal Home Loan Bank advances	50,989		649		5.11		—		—		—
Long-term debt	324,740		3,774		4.66		324,301		4,173		5.16
Total borrowed funds	520,962		6,272		4.83		324,367		4,173		5.16
Total interest-bearing liabilities	15,304,754		95,489		2.50		13,138,076		8,475		0.26
Noninterest-bearing liabilities:
Noninterest-bearing deposits	7,072,760						8,025,947
Other liabilities	385,324						397,890
Total liabilities	22,762,838						21,561,913
Shareholders' equity	3,106,390						2,691,420
Total liabilities and shareholders' equity	$	25,869,228					$	24,253,333
Net interest revenue (FTE)			$	201,293					$	180,071
Net interest-rate spread (FTE)					2.47	%					3.08	%
Net interest margin (FTE) (4)					3.37	%					3.19	%

(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 losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $389 million and $271 million in 2023 and 2022, 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 Six Months Ended June 30,

(dollars in thousands, (FTE))

	2023						2022
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)	$	17,032,493	$	487,002	5.77	%	$	14,308,585	$	301,821	4.25	%
Taxable securities (3)	6,007,471		77,205		2.57		6,142,723		48,896		1.59
Tax-exempt securities (FTE) (1)(3)	395,827		5,157		2.61		500,750		6,976		2.79
Federal funds sold and other interest-earning assets	466,642		8,010		3.46		1,604,995		3,086		0.39
Total interest-earning assets (FTE)	23,902,433		577,374		4.87		22,557,053		360,779		3.22
Non-interest-earning assets:
Allowance for loan losses	(174,716)						(124,384)
Cash and due from banks	261,397						184,751
Premises and equipment	337,499						281,842
Other assets (3)	1,492,926						1,329,359
Total assets	$	25,819,539					$	24,228,621
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand	$	4,690,798	45,196		1.94		$	4,613,838	3,632		0.16
Money market	5,210,457		58,546		2.27		5,064,866		2,527		0.10
Savings	1,361,357		1,240		0.18		1,466,812		159		0.02
Time	2,664,269		34,784		2.63		1,715,022		1,025		0.12
Brokered time deposits	316,470		7,312		4.66		72,048		90		0.25
Total interest-bearing deposits	14,243,351		147,078		2.08		12,932,586		7,433		0.12
Federal funds purchased and other borrowings	126,697		2,997		4.77		337		—		—
Federal Home Loan Bank advances	250,912		5,761		4.63		—		—		—
Long-term debt	324,721		7,670		4.76		321,663		8,309		5.21
Total borrowed funds	702,330		16,428		4.72		322,000		8,309		5.20
Total interest-bearing liabilities	14,945,681		163,506		2.21		13,254,586		15,742		0.24
Noninterest-bearing liabilities:
Noninterest-bearing deposits	7,383,575						7,847,284
Other liabilities	371,422						388,162
Total liabilities	22,700,678						21,490,032
Shareholders' equity	3,118,861						2,738,589
Total liabilities and shareholders' equity	$	25,819,539					$	24,228,621
Net interest revenue (FTE)			$	413,868					$	345,037
Net interest-rate spread (FTE)					2.66	%					2.98	%
Net interest margin (FTE) (4)					3.49	%					3.08	%

(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 $404 million in 2023 and $175 million in 2022, 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 June 30, 2023						Six Months Ended June 30, 2023
	Compared to 2022 Increase (Decrease) Due to Changes in
	Volume		Rate		Total		Volume		Rate		Total
Interest-earning assets:
Loans (FTE)	$	33,789	$	61,499	$	95,288	$	64,581	$	120,600	$	185,181
Taxable securities	(2,219)		13,662		11,443		(1,099)		29,408		28,309
Tax-exempt securities (FTE)	(785)		(302)		(1,087)		(1,389)		(430)		(1,819)
Federal funds sold and other interest-earning assets	(2,112)		4,704		2,592		(3,647)		8,571		4,924
Total interest-earning assets (FTE)	28,673		79,563		108,236		58,446		158,149		216,595
Interest-bearing liabilities:
NOW and interest-bearing demand accounts	161		25,273		25,434		62		41,502		41,564
Money market accounts	56		31,909		31,965		75		55,944		56,019
Savings deposits	(12)		627		615		(12)		1,093		1,081
Time deposits	673		21,307		21,980		873		32,886		33,759
Brokered deposits	1,285		3,636		4,921		1,173		6,049		7,222
Total interest-bearing deposits	2,163		82,752		84,915		2,171		137,474		139,645
Federal funds purchased & other borrowings	1,849		—		1,849		2,997		—		2,997
FHLB advances	649		—		649		5,761		—		5,761
Long-term debt	6		(405)		(399)		78		(717)		(639)
Total borrowed funds	2,504		(405)		2,099		8,836		(717)		8,119
Total interest-bearing liabilities	4,667		82,347		87,014		11,007		136,757		147,764
Increase in net interest revenue (FTE)	$	24,006	$	(2,784)	$	21,222	$	47,439	$	21,392	$	68,831

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 $22.8 million and $44.5 million for the three and six months ended June 30, 2023, compared to $5.60 million and $28.7 million for the same periods of 2022. 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 for the first six months of 2023 included the initial provision for credit losses on Progress non-PCD loans and unfunded commitments of $8.80 million and $1.65 million, respectively. The provision for credit losses for the first six months of 2022 included the initial provision for credit losses on Reliant non-PCD loans and unfunded commitments of $15.2 million and $3.12 million, respectively. The increase in provision expense for the three and six months ended June 30, 2023 reflects organic loan growth, a weaker economic forecast and higher net charge-offs relative to the same periods of 2022.

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 June 30,				Change				Six Months Ended June 30,				Change
	2023		2022		Amount		Percent		2023		2022		Amount		Percent
Overdraft fees	$	2,764	$	2,844	$	(80)	(3)	%	$	5,256	$	5,260	$	(4)	—	%
ATM and debit card fees	3,937		4,190		(253)		(6)		7,712		8,181		(469)		(6)
Other service charges and fees	3,076		2,971		105		4		5,508		5,634		(126)		(2)
Total service charges and fees	9,777		10,005		(228)		(2)		18,476		19,075		(599)		(3)
Mortgage loan gains and related fees	6,584		6,971		(387)		(6)		11,105		23,123		(12,018)		(52)
Wealth management fees	5,600		5,985		(385)		(6)		11,324		11,880		(556)		(5)
Gains on sales of other loans	2,305		3,800		(1,495)		(39)		4,221		6,998		(2,777)		(40)
Lending and loan servicing fees	2,978		1,586		1,392		88		6,994		4,572		2,422		53
Securities gains (losses), net	—		46		(46)				(1,644)		(3,688)		2,044
Other noninterest income:
Customer derivatives	802		534		268		50		1,157		1,320		(163)		(12)
Other investment gains (losses)	1,090		(1,342)		2,432				2,154		(1,841)		3,995
BOLI	1,681		1,884		(203)		(11)		3,296		3,221		75		2
Treasury management income	1,147		899		248		28		2,251		1,717		534		31
Other	4,423		3,090		1,333		43		7,262		6,054		1,208		20
Total other noninterest income	9,143		5,065		4,078		81		16,120		10,471		5,649		54
Total noninterest income	$	36,387	$	33,458	$	2,929	9		$	66,596	$	72,431	$	(5,835)	(8)

Service charges and fees for the three and six months ended June 30, 2023 decreased compared to the same periods of 2022 as a result of the elimination of a returned item fee effective July 1, 2022, the impact of which is reflected in overdraft fees for the 2023 periods presented.

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 in the first six months of 2023 was primarily a result of the decrease in mortgage refinance and mortgage rate lock demand compared to same period of 2022, as shown in the following table. In addition, during the first six months of 2023, we recorded an $836,000 negative fair value adjustment, including decay, to the mortgage servicing rights asset, compared to a $6.08 million positive fair value adjustment, including decay, during the first six months of 2022.

47

Table 6 - Selected Mortgage Metrics
(dollars in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023		2022		% Change		2023		2022		% Change
Mortgage rate locks	$	304,774	$	597,305	(49)	%	$	639,471	$	1,354,653	(53)	%
# of mortgage rate locks	899		1,486		(40)		1,822		3,409		(47)
Mortgage loans sold	$	141,745	$	159,897	(11)		$	221,024	$	367,049	(40)
# of mortgage loans sold	482		645		(25)		777		1,433		(46)
Mortgage loans originated:
Purchases	$	232,735	$	394,307	(41)		$	425,428	$	707,819	(40)
Refinances	30,627		104,150		(71)		62,479		252,595		(75)
Total	$	263,362	$	498,457	(47)		$	487,907	$	960,414	(49)
# of mortgage loans originated	738		1,200		(39)		1,355		2,402		(44)

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. 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 June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
	Loans Sold		Gain		Loans Sold		Gain		Loans Sold		Gain		Loans Sold		Gain
Guaranteed portion of SBA/USDA loans	$	22,072	$	1,567	$	39,119	$	3,107	$	43,842	$	3,090	$	67,462	$	5,573
Equipment financing receivables	20,571		738		20,541		693		39,274		1,131		43,977		1,425
Total	$	42,643	$	2,305	$	59,660	$	3,800	$	83,116	$	4,221	$	111,439	$	6,998

Lending and loan servicing fees for the three and six months ended June 30, 2023 increased compared to the same periods of 2022 as result of more favorable fair market value adjustments on our SBA loan servicing asset. During the second quarter and first six months of 2023, we recorded negative fair value adjustments of $605,000 and $60,000, respectively, compared to $1.50 million and $1.64 million, respectively, for the same periods of 2022.

During the six months ended June 30, 2023 and 2022, we sold certain securities, which resulted in net securities losses. During 2023, proceeds from sales were used to fund loan growth and repay FHLB advances. During 2022, we strategically reinvested in higher-yielding securities.

The change in other noninterest income for the three and six months ended June 30, 2023 compared to the same periods of 2022 was primarily driven by the following factors:

•We recorded net unrealized gains on other investments, primarily driven by equity method income from limited partnership investments and unrealized gains on deferred compensation plan assets compared to net unrealized losses during the same periods of 2022. Other investment income for three and six months ended June 30, 2023 was partially offset by unrealized losses on equity securities.

•The increase in other income was primarily driven by the gain on sale of a commercial insurance book of business of $1.59 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 June 30,				Change				Six Months Ended June 30,				Change
	2023		2022		Amount		Percent		2023		2022		Amount		Percent
Salaries and employee benefits	$	76,250	$	69,233	$	7,017	10	%	$	154,948	$	140,239	$	14,709	10	%
Communications and equipment	10,744		9,675		1,069		11		20,752		18,923		1,829		10
Occupancy	10,194		8,865		1,329		15		20,083		18,243		1,840		10
Advertising and public relations	2,314		2,300		14		1		4,663		3,788		875		23
Postage, printing and supplies	2,382		1,999		383		19		4,919		4,118		801		19
Professional fees	6,592		5,402		1,190		22		12,664		9,849		2,815		29
Lending and loan servicing expense	2,530		3,047		(517)		(17)		4,849		5,413		(564)		(10)
Outside services - electronic banking	2,660		2,947		(287)		(10)		6,085		5,470		615		11
FDIC assessments and other regulatory charges	4,142		2,267		1,875		83		8,143		4,440		3,703		83
Amortization of intangibles	3,421		1,736		1,685		97		6,949		3,529		3,420		97
Other	7,533		6,176		1,357		22		15,881		9,894		5,987		61
Total excluding merger-related and other charges	128,762		113,647		15,115		13		259,936		223,906		36,030		16
Merger-related and other charges	3,645		7,143		(3,498)				12,276		16,159		(3,883)
Total noninterest expenses	$	132,407	$	120,790	$	11,617	10		$	272,212	$	240,065	$	32,147	13

The increase in salaries and employee benefits for the second quarter and first six months of 2023 compared to the same periods of 2022 was primarily driven by the addition of Progress employees. The increase also reflects our annual merit-based salary increases awarded at the beginning of the second quarter of 2023. These increases were partially offset by a reduction in commissions expense primarily due to reduced mortgage production volume. Full-time equivalent headcount totaled 3,064 at June 30, 2023, up from 2,822 at June 30, 2022, which represents a 9% 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 second quarter and first six months of 2023 compared to the same periods of 2022 was mostly attributable to the additional operating lease costs associated with Progress.

The increase in FDIC assessments and other regulatory charges was primarily attributable to the 2 basis point assessment rate increase that went into effect for all banks on January 1, 2023, as well as an increased assessment base driven by higher average total assets partly resulting from the Progress acquisition.

Amortization of intangibles increased with the additional customer deposit intangibles recorded as a result of the Progress acquisition.

Increases in other noninterest expense were mostly attributable to higher professional services fees, internet banking charges, fraud losses and travel expenses,

Merger-related and other charges for the second quarter and first six months of 2023 were primarily related to the acquisition of Progress.

Balance Sheet Review

Total assets at June 30, 2023 and December 31, 2022 were $26.1 billion and $24.0 billion, respectively. Total liabilities at June 30, 2023 and December 31, 2022 were $23.0 billion and $21.3 billion, respectively. Shareholders’ equity totaled $3.11 billion and $2.70 billion at June 30, 2023 and December 31, 2022, respectively.

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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 June 30, 2023, of which approximately 74% was secured by real estate.

Table 9 - Loan Portfolio Composition

As of June 30, 2023

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, 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 2022 10-K for additional information on the ACL.

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Table 10 - Allocation of ACL

(in thousands)

	June 30, 2023				December 31, 2022
	ACL			% of loans in each category to total loans	ACL			% of loans in each category to total loans
Owner occupied commercial real estate	$	21,788		18	$	19,834		18
Income producing commercial real estate	38,775			21	32,082			21
Commercial & industrial	29,856			15	23,504			15
Commercial construction	22,276			10	20,120			10
Equipment financing	28,604			8	23,395			9
Total commercial	141,299			72	118,935			73
Residential mortgage	25,431			17	20,809			15
HELOC	10,609			5	8,707			6
Residential construction	3,446			3	2,049			3
Manufactured housing	9,204			2	8,098			2
Consumer	716			1	759			1
Total ACL - loans	190,705			100	159,357			100
ACL - unfunded commitments	21,572				21,163
Total ACL	$	212,277			$	180,520
ACL - loans as a percentage of total loans	1.10		%		1.04		%
ACL - loans as a percentage of nonaccrual loans	186				360

The increase in the ACL since December 31, 2022 was partially driven by the acquisition of Progress, which added $13.2 million to the ACL as of the acquisition date. Of this amount, $2.70 million was reclassified from the amortized cost basis of PCD loans, $8.80 million was recorded as provision for loan losses on acquired non-PCD loan balances and $1.65 million was recorded as provision for unfunded commitments on the acquired balance of unfunded commitments. See Provision for Credit Losses discussion within this MD&A for further information.

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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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net charge-offs (recoveries)
Owner occupied commercial real estate	$	(205)		$	(1,496)		$	(115)		$	(1,541)
Income producing commercial real estate	1,184			(116)			3,490			(406)
Commercial & industrial	2,746			(302)			2,971			2,627
Commercial construction	(105)			(144)			(142)			(517)
Equipment financing	2,537			907			5,912			1,174
Residential mortgage	(43)			(51)			(130)			(148)
HELOC	(59)			(346)			(26)			(427)
Residential construction	623			(76)			608			(99)
Manufactured housing	620			135			1,248			299
Consumer	1,101			420			1,667			947
Total net charge-offs (recoveries)	$	8,399		$	(1,069)		$	15,483		$	1,909
Average loans
Owner occupied commercial real estate	$	3,108,945		$	2,650,947		$	3,084,012		$	2,635,052
Income producing commercial real estate	3,620,809			3,290,217			3,599,464			3,300,737
Commercial & industrial	2,482,414			2,287,209			2,463,105			2,310,017
Commercial construction	1,762,984			1,493,351			1,767,437			1,476,983
Equipment financing	1,470,524			1,175,526			1,469,537			1,155,168
Residential mortgage	2,814,980			1,905,131			2,738,090			1,862,223
HELOC	923,217			786,866			925,001			780,509
Residential construction	475,225			373,732			480,924			373,333
Manufactured housing	331,332			276,918			333,034			271,231
Consumer	175,699			142,427			171,889			143,332
Total average loans	$	17,166,129		$	14,382,324		$	17,032,493		$	14,308,585
Net charge-offs to average loans (1)
Owner occupied commercial real estate	(0.03)		%	(0.23)		%	(0.01)		%	(0.12)		%
Income producing commercial real estate	0.13			(0.01)			0.20			(0.02)
Commercial & industrial	0.44			(0.05)			0.24			0.23
Commercial construction	(0.02)			(0.04)			(0.02)			(0.07)
Equipment financing	0.69			0.31			0.81			0.20
Residential mortgage	(0.01)			(0.01)			(0.01)			(0.02)
HELOC	(0.03)			(0.18)			(0.01)			(0.11)
Residential construction	0.53			(0.08)			0.25			(0.05)
Manufactured housing	0.75			0.20			0.76			0.22
Consumer	2.51			1.18			1.96			1.33
Total	0.20			(0.03)			0.18			0.03

(1) Annualized.

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Nonperforming Assets

The table below summarizes NPAs for the periods indicated. NPAs include nonaccrual loans, OREO and repossessed assets. The increase in nonaccrual loans since December 31, 2022 is primarily driven by a small number of large commercial loans that moved to nonaccrual status and an increase in nonaccrual manufactured housing loans during the first half of 2023, which contributed to $59.0 million and $6.62 million of the increase, respectively. These additions were partially offset by reductions in nonaccrual loans resulting from repayments, payoffs, charge-offs as well as loans returning to accrual status.

Table 12 - NPAs

(in thousands)

	June 30, 2023			December 31, 2022
Nonaccrual loans	102,619			44,232
OREO and repossessed assets	1,118			49
Total NPAs	$	103,737		$	44,281
Nonaccrual loans as a percentage of total loans	0.59		%	0.29		%
NPAs as a percentage of total assets	0.40			0.18

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 with senior management approval 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.

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.

Table 13 - Investment Securities

(in thousands)

	June 30, 2023					December 31, 2022
	Carrying Value			% of portfolio		Carrying Value			% of portfolio		$ Change
AFS	$	3,359,989		57	%	$	3,614,333		58	%	$	(254,344)
HTM	2,553,835			43		2,613,648			42		(59,813)
Total investment securities	$	5,913,824				$	6,227,981				$	(314,157)
Investment securities as a % of total assets	23		%			26		%

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Table 14 - Investment Securities Portfolio Composition

As of June 30, 2023

(in thousands)

In the first quarter of 2023, we sold $381 million in AFS securities, including approximately $111 million in securities received through the Progress acquisition, primarily for the purpose of providing liquidity to fund loan growth.

During the second quarter of 2023, we entered into a fair value hedge on a portion of our AFS securities portfolio in order to mitigate the impact of any potential future unrealized losses on our tangible common equity. The notional value of the securities hedged totaled $677 million as of June 30, 2023. Gains and losses related to the hedge and hedged item are reflected in investment securities income. During the second quarter of 2023, we recorded net gains on the hedge and hedged item of $910,000. See Note 7 to the financial statements for further detail.

At June 30, 2023, HTM debt securities had a fair value of $2.13 billion, indicating net unrealized losses of $421 million. Additional unrealized losses on HTM debt securities of $72.9 million (pre-tax) were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022. Unrealized losses were primarily attributable to changes in interest rates.

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 June 30, 2023 and December 31, 2022, 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.

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 when 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 June 30, 2023 and December 31, 2022, there was no ACL related to the AFS debt securities portfolio. Unrealized losses at June 30, 2023 and December 31, 2022 primarily reflected the effect of changes in interest rates.

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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 June 30, 2023 and December 31, 2022, the net carrying amount of goodwill was $897 million and $751 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 Progress in the first quarter of 2023, we recorded goodwill and a core deposit intangible of $146 million and $40.0 million, respectively. See Note 4 to the financial statements for further information about the Progress acquisition.

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, 2022 was mostly driven by the deposits assumed in the Progress transaction, although we also generated organic growth by increasing the rates offered on deposits to remain competitive in the market in the midst of the rising rate environment. As of June 30, 2023, we had approximately $8.21 billion of uninsured deposits, of which $2.29 billion was collateralized by investment securities.

Table 15 - Deposits

(in thousands)

	June 30, 2023		December 31, 2022
Noninterest-bearing demand	$	6,970,668	$	7,643,081
NOW and interest-bearing demand	5,076,371		4,350,878
Money market and savings	6,297,803		5,967,017
Time	3,265,230		1,781,482
Total customer deposits	21,610,072		19,742,458
Brokered deposits	641,916		134,049
Total deposits	$	22,251,988	$	19,876,507

Borrowing Activities

At both June 30, 2023 and December 31, 2022, we had long-term debt outstanding of $325 million, which includes senior debentures, subordinated debentures, and trust preferred securities. Also at December 31, 2022, we had short-term borrowings outstanding of $159 million, which was mostly comprised of repurchase agreements, and we had $550 million of FHLB advances outstanding. There were no short-term borrowings or FHLB advances outstanding at June 30, 2023. We began using these short-term funding sources in mid 2022 due to balance attrition in our deposit accounts and our need to fund loan growth. The decrease since December 31, 2022 is a result of the sale of investment securities noted above and growth in customer and brokered deposits which allowed us to fund loan growth and repay short-term borrowings.

Contractual Obligations

There have not been any material changes to our contractual obligations since December 31, 2022.

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

55

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 23 to the consolidated financial statements included in our 2022 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 multiple 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.

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Table 16 - Interest Sensitivity

(in thousands)

	Increase (Decrease) in Net Interest Revenue from Base Scenario at
	June 30, 2023				December 31, 2022
Change in Rates	Shock		Ramp		Shock		Ramp
200 basis point increase	1.56	%	(0.30)	%	6.97	%	4.33	%
100 basis point increase	0.82		0.02		3.53		2.85
100 basis point decrease	(1.14)		(0.43)		(3.78)		(3.12)
200 basis point decrease	(3.79)		(0.77)		(8.39)		(5.07)

The current environment is marked by the most rapid rate increases in decades, which, in part, is making non-bank products, such as U.S. Treasuries and institutional money market funds, more attractive to our deposit customers. For this and other reasons, the banking industry’s deposit base has been shrinking since the first half of 2022. This industry-wide outflow of deposits has increased price competition for bank deposits. As such, industry deposit betas, including ours, have been increasing at a faster pace relative to the last rising rate cycle. Our cumulative total deposit beta for the current rising rate cycle increased to 32% in the second quarter of 2023. Our cumulative total deposit beta in the last upward rate cycle from November 2015 to July 2019 was 22%.

Our interest sensitivity model includes significant key assumptions which may change over time. Although our model generally assumes no change in deposit portfolio size or composition, we have included an assumption for the runoff of surge deposits since 2021. In the second quarter of 2023, in response to the rapid rate increases mentioned above, we increased the beta assumption in our model. The modeled total deposit beta, which is measured as the change in our overall deposit rate as a percentage of the change in the targeted federal funds rate, was 37%. A higher total deposit beta assumption generally indicates a less asset sensitive balance sheet and lowers the expected increase in net interest revenue in the increasing rate scenarios.

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 repurchase agreements, Federal funds purchased, FHLB advances, and brokered deposits. These 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 response to recent bank failures, we have focused on maximizing the amount of securities and loans available as collateral for contingent liquidity sources as well as reevaluated the assumptions in our liquidity stress test, particularly as it relates to deposit duration.

At June 30, 2023, we had sufficient qualifying collateral to provide borrowing capacity for FHLB advances of $1.75 billion, Federal Reserve discount window borrowing capacity of $2.70 billion and Federal Reserve bank term funding program capacity of $2.26 billion. We also had unpledged investment securities of $1.49 billion that could be used as collateral for additional borrowings. In addition, we believe we have the ability to attract retail deposits by competing more aggressively on pricing.

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

57

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.

Significant uses and sources of cash during the six months ended June 30, 2023 are as follows. See the consolidated statement of cash flows for further detail.

•Net cash provided by operating activities of $185 million reflects net income of $126 million adjusted for non-cash transactions, partly offset by changes in loans held for sale and other assets and liabilities. Significant non-cash transactions for the period included a $44.5 million provision for credit losses and net depreciation, amortization, and accretion of $23.6 million.

•Net cash used in investing activities of $163 million primarily consisted of a net increase in loans of $618 million and purchases of AFS securities and equity investments totaling $310 million. These uses of cash were partially offset by proceeds from securities sales, maturities and calls of $624 million and equity investment inflows of $123 million.

•Net cash provided by financing activities of $42.3 million was driven by a net increase in deposits of $1.04 billion, partially offset by net repayments of FHLB advances of $645 million, a net decrease in short-term borrowings of $300 million, and dividends on common and preferred stock of $53.9 million.

In the opinion of management, our liquidity position at June 30, 2023 was sufficient to meet our expected cash flow requirements for the foreseeable future.

Capital Resources and Dividends

Shareholders’ equity at June 30, 2023 was $3.11 billion, an increase of $405 million from December 31, 2022 primarily due to equity issued in the Progress acquisition, year-to-date earnings and unrealized gains on AFS securities, partially offset by dividends declared on common and preferred stock.

The following table shows capital ratios, as calculated under applicable regulatory guidelines, at June 30, 2023 and December 31, 2022. As of June 30, 2023, 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 17 - Capital Ratios

							United Community Banks, Inc. (Consolidated)				United Community Bank
	Minimum		Well- Capitalized		Minimum Capital Plus Capital Conservation Buffer		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	7.0	%	12.19	%	12.26	%	12.42	%	12.83	%
Tier 1 capital	6.0		8.0		8.5		12.69		12.81		12.42		12.83
Total capital	8.0		10.0		10.5		14.57		14.79		13.39		13.70
Leverage ratio	4.0		5.0		N/A		9.79		9.69		9.56		9.69

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 June 30, 2023 from that presented in our 2022 10-K. Our interest rate sensitivity position at June 30, 2023 is set forth in Table 16 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 June 30, 2023. 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 June 30, 2023 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 First Miami acquisition, which are set forth on pages 22 through 24 of the prospectus filed with the SEC on April 24, 2023 pursuant to Securities Act Rule 424(b)(3) (and incorporated herein by this reference), there have been no material changes to the risk factors previously disclosed in the 2022 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table contains information regarding purchases of our preferred stock made during the quarter ended June 30, 2023 by or on behalf of United or any “affiliated purchaser,” as defined by Rule 10b-18(a)(3) of the Exchange Act:

(Dollars in thousands, except for per share amounts)	Total Number of Depositary Shares Purchased	Average Price Paid per Depositary Share		Total Number of Depositary Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April 1, 2023 - April 30, 2023	—	$	—	—	$	—
May 1, 2023 - May 31, 2023	—	—		—	25,000
June 1, 2023 - June 30, 2023	10,668	20.85		10,668	24,778
Total	10,668	$	20.85	10,668

(1) In May 2023, United’s Board authorized a preferred stock repurchase program to permit the repurchase of up to $25 million of its preferred stock. The program is scheduled to expire on the earlier of the repurchase of our preferred stock having an aggregate purchase price of $25 million or December 31, 2023. Under the program, shares may be repurchased in open market transactions or in privately negotiated transactions, from time to time, subject to market conditions, including transactions outside the safe harbor provided by Exchange Act Rule 10b-18 (but nevertheless adhering to Rule 10-b-18’s requirements). The preferred stock repurchase program may be modified, suspended or discontinued at any time at the Company’s discretion without prior notice, and does not commit the Company to repurchase shares of its preferred stock or depositary shares. The actual number and value of the shares to be purchased will be determined by the Company at its discretion, and will depend on a number of factors including the performance of the price of the depositary shares, market conditions, the availability of alternative investment opportunities and other factors the Company deems appropriate.

60

Item 6. Exhibits

(d)     Exhibits. See Exhibit Index below.

EXHIBIT INDEX
Exhibit No.	Description
2.1	Agreement and Plan of Merger by and between United Community Banks, Inc. and First Miami Bancorp, Inc. dated as of February 13, 2023 (incorporated herein by reference from Exhibit 2.1 to the Current Report on Form 8-K of United Community Banks, Inc. filed with the SEC on February 15, 2023).
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).
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 June 30, 2023, 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 of Changes 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 June 30, 2023 (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: August 4, 2023

62

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: August 4, 2023
	/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: August 4, 2023
	/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 June 30, 2023 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:	August 4, 2023
	/s/ Jefferson L. Harralson
Name:	Jefferson L. Harralson
Title:	Executive Vice President and Chief Financial Officer
Date:	August 4, 2023

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		118,853,361
Entity Central Index Key	0000857855
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
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	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 267,075	$ 195,771
Interest-bearing deposits in banks	443,661	316,082
Federal funds and other short-term investments	0	135,000
Cash and cash equivalents	710,736	646,853
Debt securities available-for-sale	3,359,989	3,614,333
Debt securities held-to-maturity (fair value $2,132,396 and $2,191,073, respectively)	2,553,835	2,613,648
Loans held for sale	27,104	13,600
Loans and leases held for investment	17,394,845	15,334,627
Less allowance for credit losses - loans and leases	(190,705)	(159,357)
Loans and leases, net	17,204,140	15,175,270
Premises and equipment, net	353,317	298,456
Bank owned life insurance	342,966	299,297
Goodwill and other intangible assets, net	957,823	779,248
Other assets	610,287	568,179
Total assets	26,120,197	24,008,884
Deposits:
Noninterest-bearing demand	6,970,668	7,643,081
Interest-bearing deposits	15,281,320	12,233,426
Total deposits	22,251,988	19,876,507
Short-term borrowings	0	158,933
Federal Home Loan Bank advances	0	550,000
Long-term debt	324,754	324,663
Accrued expenses and other liabilities	437,864	398,107
Total liabilities	23,014,606	21,308,210
Shareholders' equity:
Preferred stock, $1 par value: 10,000,000 shares authorized; 3,989 and 4,000 shares Series I issued and outstanding, respectively; $25,000 per share liquidation preference	96,165	96,422
Common stock, $1 par value: 200,000,000 shares authorized, 115,265,912 and 106,222,758 shares issued and outstanding, respectively	115,266	106,223
Common stock issuable: 587,775 and 607,128 shares, respectively	12,228	12,307
Capital surplus	2,610,523	2,306,366
Retained earnings	577,316	508,844
Accumulated other comprehensive loss	(305,907)	(329,488)
Total shareholders' equity	3,105,591	2,700,674
Total liabilities and shareholders' equity	$ 26,120,197	$ 24,008,884

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
HTM debt securities	$ 2,132,396,000	$ 2,191,073,000
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)	3,989	4,000
Preferred stock outstanding (in shares)	3,989	4,000
Preferred stock liquidation preference (in dollars per share)	$ 25,000	$ 25,000
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)	115,265,912	106,222,758
Common stock outstanding (in shares)	115,265,912	106,222,758
Common stock issuable (in shares)	587,775	607,128

XML

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest revenue:
Loans, including fees	$ 250,484	$ 155,266	$ 486,915	$ 302,007
Investment securities, including tax exempt of $1,731, $2,539, $3,841 and $5,194, respectively	41,060	30,425	81,046	54,090
Deposits in banks and short-term investments	4,231	1,687	7,301	2,340
Total interest revenue	295,775	187,378	575,262	358,437
Interest expense:
Deposits	89,217	4,302	147,078	7,433
Short-term borrowings	1,849	0	2,997	0
Federal Home Loan Bank advances	649	0	5,761	0
Long-term debt	3,774	4,173	7,670	8,309
Total interest expense	95,489	8,475	163,506	15,742
Net interest revenue	200,286	178,903	411,756	342,695
Provision for credit losses	22,753	5,604	44,536	28,690
Net interest revenue after provision for credit losses	177,533	173,299	367,220	314,005
Noninterest income:
Wealth management fees	5,600	5,985	11,324	11,880
Gains from sales of other loans, net	2,305	3,800	4,221	6,998
Lending and loan servicing fees	2,978	1,586	6,994	4,572
Securities gains (losses), net	0	46	(1,644)	(3,688)
Other	9,143	5,065	16,120	10,471
Total noninterest income	36,387	33,458	66,596	72,431
Total revenue	213,920	206,757	433,816	386,436
Noninterest expenses:
Salaries and employee benefits	76,250	69,233	154,948	140,239
Communications and equipment	10,744	9,675	20,752	18,923
Occupancy	10,194	8,865	20,083	18,243
Advertising and public relations	2,314	2,300	4,663	3,788
Postage, printing and supplies	2,382	1,999	4,919	4,118
Professional fees	6,592	5,402	12,664	9,849
Lending and loan servicing expense	2,530	3,047	4,849	5,413
Outside services - electronic banking	2,660	2,947	6,085	5,470
FDIC assessments and other regulatory charges	4,142	2,267	8,143	4,440
Amortization of intangibles	3,421	1,736	6,949	3,529
Merger-related and other charges	3,645	7,143	12,276	16,159
Other	7,533	6,176	15,881	9,894
Total noninterest expenses	132,407	120,790	272,212	240,065
Income before income taxes	81,513	85,967	161,604	146,371
Income tax expense	18,225	19,125	36,016	31,510
Net income	63,288	66,842	125,588	114,861
Net income available to common shareholders, basic	61,227	64,761	121,470	110,827
Net income available to common shareholders, diluted	$ 61,227	$ 64,761	$ 121,470	$ 110,827
Net income per common share:
Basic (in dollars per share)	$ 0.53	$ 0.61	$ 1.05	$ 1.04
Diluted (in dollars per share)	$ 0.53	$ 0.61	$ 1.05	$ 1.04
Weighted average common shares outstanding:
Basic (in shares)	115,774	106,610	115,614	106,580
Diluted (in shares)	115,869	106,716	115,795	106,697
Service charges and fees
Noninterest income:
Service charges and other related fees	$ 9,777	$ 10,005	$ 18,476	$ 19,075
Mortgage loan gains and other related fees
Noninterest income:
Service charges and other related fees	$ 6,584	$ 6,971	$ 11,105	$ 23,123

XML

Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Investment securities, tax exempt	$ 1,731	$ 2,539	$ 3,841	$ 5,194

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income, Before-tax Amount	$ 81,513	$ 85,967	$ 161,604	$ 146,371
Net income, Tax (Expense) Benefit	(18,225)	(19,125)	(36,016)	(31,510)
Net income	63,288	66,842	125,588	114,861
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses), Before-tax Amount	(19,753)	(120,968)	23,526	(324,853)
Unrealized holding gains (losses), Tax (Expense) Benefit	4,782	28,801	(5,502)	76,774
Unrealized holding gains (losses), Net of Tax Amount	(14,971)	(92,167)	18,024	(248,079)
Reclassification of securities from available-for-sale to held-to-maturity, Before-tax Amount		30,041		87,444
Reclassification of securities from available-for-sale to held-to-maturity, Tax (Expense) Benefit		(7,178)		(20,770)
Reclassification of securities from available-for-sale to held-to-maturity, Net of Tax Amount		22,863		66,674
Reclassification adjustment for losses included in net income, Before-tax Amount	0	(46)	1,644	3,688
Reclassification adjustment for losses included in net income, Tax (Expense) Benefit	0	11	(374)	(979)
Reclassification adjustment for losses included in net income, Net of Tax Amount	0	(35)	1,270	2,709
Net unrealized gains (losses), Before-tax Amount	(19,753)	(90,973)	25,170	(233,721)
Net unrealized gains (losses), Tax (Expense) Benefit	4,782	21,634	(5,876)	55,025
Net unrealized gains (losses), Net of Tax Amount	(14,971)	(69,339)	19,294	(178,696)
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale, Before-tax amount	2,518		5,486
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale, Tax (Expense) Benefit	(604)		(1,324)
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale, Net of Tax Amount	1,914		4,162
Unrealized losses on held-to-maturity securities transferred from available-for-sale:
Reclassification of unrealized losses, Before-tax Amount		(30,041)		(87,444)
Reclassification of unrealized losses, Tax (Expense) Benefit		7,178		20,770
Reclassification of unrealized losses, Net of Tax Amount		(22,863)		(66,674)
Amortization of unrealized losses, Before-tax Amount		1,769		1,769
Amortization of unrealized losses, Tax (Expense) Benefit		(422)		(422)
Amortization of unrealized losses, Net of Tax Amount		1,347		1,347
Net activity, Before-tax Amount		(28,272)		(85,675)
Net activity, Tax (Expense) Benefit		6,756		20,348
Net activity, Net of Tax Amount		(21,516)		(65,327)
Derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivatives, Before-tax Amount	3,303	2,412	2,101	7,880
Unrealized holding gains (losses) on derivatives, Tax (Expense) Benefit	(843)	(616)	(536)	(2,013)
Unrealized holding gains (losses) on derivatives, Net of Tax Amount	2,460	1,796	1,565	5,867
Gains (Losses) on derivative instruments realized in net income, Before-tax Amount	(1,234)	106	(2,056)	247
Gains (Losses) on derivative instruments realized in net income, Tax (Expense) Benefit	315	(27)	525	(63)
Gains (Losses) on derivative instruments realized in net income, Net of Tax Amount	(919)	79	(1,531)	184
Net cash flow hedge activity, Before-tax Amount	2,069	2,518	45	8,127
Net cash flow hedge activity, Tax (Expense) Benefit	(528)	(643)	(11)	(2,076)
Net cash flow hedge activity, Net of tax Amount	1,541	1,875	34	6,051
Amortization of defined benefit pension plan net periodic pension cost components, Before-tax Amount	61	171	122	341
Amortization of defined benefit pension plan net periodic pension cost components, Tax (Expense) Benefit	(15)	(44)	(31)	(87)
Amortization of defined benefit pension plan net periodic pension cost components, Net of Tax Amount	46	127	91	254
Total other comprehensive income (loss), Before-tax Amount	(15,105)	(116,556)	30,823	(310,928)
Total other comprehensive income (loss), Tax (Expense) Benefit	3,635	27,703	(7,242)	73,210
Total other comprehensive income (loss), Net of Tax Amount	(11,470)	(88,853)	23,581	(237,718)
Comprehensive income (loss), Before-tax Amount	66,408	(30,589)	192,427	(164,557)
Comprehensive income (loss), Tax (Expense) Benefit	(14,590)	8,578	(43,258)	41,700
Comprehensive income (loss), Net of Tax Amount	$ 51,818	$ (22,011)	$ 149,169	$ (122,857)

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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, 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	114,861					114,861
Other comprehensive income (loss)	(237,718)						(237,718)
Impact of acquisitions (in shares)		16,571,545
Impact of acquisitions	596,376	$ 16,571			579,805
Preferred stock dividends	(3,438)					(3,438)
Common stock dividends	(45,107)					(45,107)
Impact of equity-based compensation awards (in shares)		49,443
Impact of equity-based compensation awards	4,557	$ 50		1,454	3,053
Impact of other United sponsored equity plans (in shares)		63,146
Impact of other United sponsored equity plans	(488)	$ 63		(1,294)	743
Ending balance (in shares) at Jun. 30, 2022		106,033,960
Ending balance at Jun. 30, 2022	2,651,288	$ 106,034	96,422	11,448	2,304,608	396,970	(264,194)
Beginning balance (in shares) at Mar. 31, 2022		106,025,210
Beginning balance at Mar. 31, 2022	2,695,015	$ 106,025	96,422	11,311	2,302,189	354,409	(175,341)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	66,842					66,842
Other comprehensive income (loss)	(88,853)						(88,853)
Preferred stock dividends	(1,719)					(1,719)
Common stock dividends	(22,562)					(22,562)
Impact of equity-based compensation awards (in shares)		6,520
Impact of equity-based compensation awards	2,364	$ 7		10	2,347
Impact of other United sponsored equity plans (in shares)		2,230
Impact of other United sponsored equity plans	201	$ 2		127	72
Ending balance (in shares) at Jun. 30, 2022		106,033,960
Ending balance at Jun. 30, 2022	$ 2,651,288	$ 106,034	96,422	11,448	2,304,608	396,970	(264,194)
Beginning balance (in shares) at Dec. 31, 2022	106,222,758	106,222,758
Beginning balance at Dec. 31, 2022	$ 2,700,674	$ 106,223	96,422	12,307	2,306,366	508,844	(329,488)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	125,588					125,588
Other comprehensive income (loss)	23,581						23,581
Impact of acquisitions (in shares)		8,770,531
Impact of acquisitions	306,461	$ 8,771			297,690
Preferred stock dividends	(3,438)					(3,438)
Common stock dividends	(53,678)					(53,678)
Purchases of preferred stock (in shares)
Purchases of preferred stock	(222)		(257)		35
Impact of equity-based compensation awards (in shares)		232,302
Impact of equity-based compensation awards	6,744	$ 232		623	5,889
Impact of other United sponsored equity plans (in shares)		40,321
Impact of other United sponsored equity plans	$ (119)	$ 40		(702)	543
Ending balance (in shares) at Jun. 30, 2023	115,265,912	115,265,912
Ending balance at Jun. 30, 2023	$ 3,105,591	$ 115,266	96,165	12,228	2,610,523	577,316	(305,907)
Beginning balance (in shares) at Mar. 31, 2023		115,151,566
Beginning balance at Mar. 31, 2023	3,078,123	$ 115,152	96,422	11,977	2,606,403	542,606	(294,437)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63,288					63,288
Other comprehensive income (loss)	(11,470)						(11,470)
Preferred stock dividends	(1,719)					(1,719)
Common stock dividends	(26,859)					(26,859)
Purchases of preferred stock	(222)		(257)		35
Impact of equity-based compensation awards (in shares)		110,414
Impact of equity-based compensation awards	4,224	$ 110		125	3,989
Impact of other United sponsored equity plans (in shares)		3,932
Impact of other United sponsored equity plans	$ 226	$ 4		126	96
Ending balance (in shares) at Jun. 30, 2023	115,265,912	115,265,912
Ending balance at Jun. 30, 2023	$ 3,105,591	$ 115,266	$ 96,165	$ 12,228	$ 2,610,523	$ 577,316	$ (305,907)

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 0.23	$ 0.21	$ 0.46	$ 0.42

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net income	$ 125,588	$ 114,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	23,592	22,086
Provision for credit losses	44,536	28,690
Stock based compensation	4,790	4,861
Deferred income tax expense	5,599	4,361
Securities losses, net	1,644	3,688
Gains from sales of other loans	(4,221)	(6,998)
Changes in assets and liabilities:
Other assets	(2,962)	6,317
Accrued expenses and other liabilities	(2,128)	49,707
Loans held for sale	(11,417)	119,837
Net cash provided by operating activities	185,021	347,410
Debt securities held-to-maturity:
Proceeds from maturities and calls	63,602	90,576
Purchases	0	(326,494)
Debt securities available-for-sale:
Proceeds from sales	380,661	281,521
Proceeds from maturities and calls	179,586	336,511
Purchases	(186,810)	(1,498,515)
Net increase in loans	(618,464)	(435,015)
Equity investments, outflows	(122,923)	(23,016)
Equity investments, inflows	122,576	16,241
Proceeds from sales of premises and equipment	2,169	4,792
Purchases of premises and equipment	(43,809)	(16,774)
Net cash received in acquisition	57,101	35,243
Other investing inflows	2,846	1,226
Net cash used in investing activities	(163,465)	(1,533,704)
Financing activities:
Net increase in deposits	1,040,034	128,688
Net decrease in short-term borrowings	(299,951)	0
Proceeds from FHLB advances	2,225,000	0
Repayment of FHLB advances	(2,870,000)	0
Cash dividends on common stock	(50,493)	(40,694)
Cash dividends on preferred stock	(3,438)	(3,438)
Other financing inflows	3,116	473
Other financing outflows	(1,941)	(1,538)
Net cash provided by financing activities	42,327	83,491
Net change in cash and cash equivalents	63,883	(1,102,803)
Cash and cash equivalents, beginning of period	646,853	2,318,510
Cash and cash equivalents, end of period	$ 710,736	$ 1,215,707

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Basis of Presentation and Updates to Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Updates to Significant Accounting Policies

Basis of Presentation and Updates to Significant Accounting Policies

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 2022 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 2022 10-K.

Updates to Significant Accounting Policies

Effective January 1, 2023, United adopted ASU 2022-02, which updated the guidance on modifications to financing receivables by effectively replacing the concept of troubled debt restructurings with a new concept, loan modifications to borrowers experiencing financial difficulty. See Note 2 for further detail. Below summarizes the policy surrounding FDMs.

FDMs: A loan for which the terms have been modified as a result of the borrower experiencing financial difficulty is generally considered to be a FDM. Modified terms that result in a FDM include one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the term or amortization period, a more than insignificant payment delay or principal forgiveness. The ACL on FDMs is calculated using the same method as other loans held for investment.

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Accounting Standards Updates and Recently Adopted Standards

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Updates and Recently Adopted Standards

Accounting Standards Updates and Recently Adopted Standards

Recently Adopted Standards

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from contracts with Customers. The update requires that an acquiring entity apply the guidance from Revenue from Contracts with Customers (Topic 606) to recognize and measure contract assets and contract liabilities in a business combination, rather than fair value. Adoption of this update as of January 1, 2023 did not have a material impact on the consolidated financial statements.

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. Adoption of this update as of January 1, 2023 did not 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. United adopted this update using a modified retrospective transition method as of January 1, 2023. The quantitative impact of adoption related to the CECL calculation for FDMs was not material; thus, no corresponding cumulative effect adjustment to retained earnings was recorded.

Recently Issued Standards

In March 2022, the FASB issued ASU No 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The update broadens the application of the proportional amortization method to tax equity investments other than LIHTC, providing certain conditions are met. The election to apply the proportional amortization method must be made on a tax-credit-program by tax-credit-program basis rather than at the reporting entity level or to individual investments. The update also requires certain disclosures related to those investments for which the proportional amortization method has been applied. 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.

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023 and 2022 is as follows (in thousands).

	Six Months Ended June 30,
	2023		2022
Significant non-cash investing and financing transactions:
Commitments to fund equity investments	$	11,093	$	—
Transfers of AFS securities to HTM securities	—		1,288,982
Acquisitions:
Assets acquired	1,903,930		3,254,173
Liabilities assumed	1,597,022		2,657,173
Net assets acquired	306,908		597,000
Common stock issued and options converted	306,461		596,376

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Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Acquisition of Progress

On January 3, 2023, United acquired all of the outstanding common stock of Progress in a stock transaction. Progress operated 13 offices primarily located in Alabama and the Florida Panhandle, which facilitated United’s growth into those markets. United’s operating results for the three and six months ended June 30, 2023 include the operating results of the acquired business for the period subsequent to the acquisition date of January 3, 2023.

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

Progress
	Fair Value Recorded by United (1)
		January 3, 2023
	Assets
	Cash and cash equivalents	$	57,548
	Debt securities	111,006
	Loans held for sale	2,087
	Loans held for investment	1,442,959
	Premises and equipment	21,118
	Bank-owned life insurance	40,723
	Core deposit intangible	39,980
	Other assets	42,965
	Total assets acquired	1,758,386
	Liabilities
	Deposits	1,334,476
	Short-term borrowings	141,017
	Federal Home Loan Bank advances	95,000
	Other liabilities	26,529
	Total liabilities assumed	1,597,022
	Total identifiable net assets	161,364
	Consideration transferred
	Cash	447
	Common stock issued (8,770,531 shares)	296,444
	Options converted	10,017
	Total fair value of consideration transferred	306,908
	Goodwill	$	145,544

(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 Progress’ business and reputation within the markets it served and is not expected to be deductible for income tax purposes. The Progress 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 Progress loan portfolio at the acquisition date (in thousands).

	January 3, 2023
PCD loans:
Par value	$	64,913
ACL at acquisition	(2,704)
Non-credit discount	(150)
Purchase price	$	62,059
Non-PCD loans:
Fair value	$	1,380,900
Gross contractual amounts receivable	1,626,243
Estimate of contractual cash flows not expected to be collected	9,287

Pro forma information

The following table discloses the impact of the Progress acquisition since the date of acquisition. The table also presents certain pro forma information as if Progress had been acquired on January 1, 2022 and Reliant had been acquired on January 1, 2021. These results combine the historical results of the acquired entities 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 acquisitions taken place in earlier years.

Merger-related costs related to the Progress acquisition for the three and six months ended June 30, 2023 of $2.29 million and $9.78 million, respectively, have been excluded from the pro forma information for those periods presented below and included in the three and six months ended June 30, 2022 pro forma information. Merger-related costs related to the Reliant acquisition for the three and six months ended June 30, 2022 of $5.46 million and $14.0 million, respectively, have been excluded from the pro forma information presented below. The actual results and pro forma information were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	Revenue		Net Income		Revenue		Net Income
2023
Actual Progress results included in statement of income since acquisition date	$	17,969	$	3,288	$	24,621	$	5,098
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022	213,509		64,832		443,050		140,041
2022
Actual Reliant results included in statement of income since acquisition date	$	29,172	$	15,550	$	43,086	$	16,148
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022 and Reliant had been acquired January 1, 2021	$	225,984	$	73,656	$	430,853	$	131,038

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Investment Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment 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 June 30, 2023
U.S. Treasuries	$	19,849	$	—	$	2,354	$	17,495
U.S. Government agencies & GSEs	99,779		—		17,112		82,667
State and political subdivisions	294,920		23		56,274		238,669
Residential MBS, Agency & GSEs	1,438,048		13		222,256		1,215,805
Commercial MBS, Agency & GSEs	686,239		—		120,831		565,408
Supranational entities	15,000		—		2,648		12,352
Total	$	2,553,835	$	36	$	421,475	$	2,132,396
As of December 31, 2022
U.S. Treasuries	$	19,834	$	—	$	2,417	$	17,417
U.S. Government agencies & GSEs	99,679		—		18,169		81,510
State and political subdivisions	295,945		56		64,340		231,661
Residential MBS, Agency & GSEs	1,488,028		35		223,566		1,264,497
Commercial MBS, Agency & GSEs	695,162		—		111,586		583,576
Supranational entities	$	15,000	$	—	$	2,588	$	12,412
Total	$	2,613,648	$	91	$	422,666	$	2,191,073

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). During the second quarter of 2023, United entered into fair value hedges on stated amounts of a closed portfolio of AFS debt securities using the portfolio layer method, which is further explained in Note 7.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of June 30, 2023
U.S. Treasuries	$	347,029	$	34	$	13,640	$	333,423
U.S. Government agencies & GSEs	252,981		295		16,180		237,096
State and political subdivisions	183,201		—		22,100		161,101
Residential MBS, Agency & GSEs	1,445,528		—		158,964		1,286,564
Residential MBS, Non-agency	360,476		—		26,805		333,671
Commercial MBS, Agency & GSEs	669,625		—		81,276		588,349
Commercial MBS, Non-agency	31,097		—		1,008		30,089
Corporate bonds	218,886		60		22,210		196,736
Asset-backed securities	198,279		27		5,346		192,960
Total	3,707,102		416		347,529		3,359,989
As of December 31, 2022
U.S. Treasuries	$	163,972	$	—	$	14,620	$	149,352
U.S. Government agencies & GSEs	266,347		463		16,694		250,116
State and political subdivisions	329,723		151		26,126		303,748
Residential MBS, Agency & GSEs	1,609,442		13		160,636		1,448,819
Residential MBS, Non-agency	374,535		—		27,873		346,662
Commercial MBS, Agency & GSEs	720,282		471		79,407		641,346
Commercial MBS, Non-agency	31,624		—		1,058		30,566
Corporate bonds	236,181		34		23,763		212,452
Asset-backed securities	239,220		—		7,948		231,272
Total	$	3,971,326	$	1,132	$	358,125	$	3,614,333

Securities with a carrying value of $4.43 billion and $2.53 billion were pledged, primarily to secure public deposits and provide contingent liquidity through the Bank Term Funding Program at the Federal Reserve Bank, at June 30, 2023 and December 31, 2022, 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 June 30, 2023
U.S. Treasuries	$	—	$	—	$	17,495	$	2,354	$	17,495	$	2,354
U.S. Government agencies & GSEs	—		—		82,667		17,112		82,667		17,112
State and political subdivisions	22,629		220		211,786		56,054		234,415		56,274
Residential MBS, Agency & GSEs	55,552		3,332		1,158,955		218,924		1,214,507		222,256
Commercial MBS, Agency & GSEs	6,479		220		558,928		120,611		565,407		120,831
Supranational entities	—		—		12,352		2,648		12,352		2,648
Total unrealized loss position	$	84,660	$	3,772	$	2,042,183	$	417,703	$	2,126,843	$	421,475
As of December 31, 2022
U.S. Treasuries	$	17,417	$	2,417	$	—	$	—	$	17,417	$	2,417
U.S. Government agencies & GSEs	10,687		1,813		70,823		16,356		81,510		18,169
State and political subdivisions	104,243		20,639		117,115		43,701		221,358		64,340
Residential MBS, Agency & GSEs	296,673		38,289		965,785		185,277		1,262,458		223,566
Commercial MBS, Agency & GSEs	176,848		24,497		406,728		87,089		583,576		111,586
Supranational entities	12,412		2,588		—		—		12,412		2,588
Total unrealized loss position	$	618,280	$	90,243	$	1,560,451	$	332,423	$	2,178,731	$	422,666

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 June 30, 2023
U.S. Treasuries	$	49,170	$	16	$	150,685	$	13,624	$	199,855	$	13,640
U.S. Government agencies & GSEs	64,447		509		127,787		15,671		192,234		16,180
State and political subdivisions	552		33		160,549		22,067		161,101		22,100
Residential MBS, Agency & GSEs	219,050		11,928		1,067,514		147,036		1,286,564		158,964
Residential MBS, Non-agency	8,618		320		325,053		26,485		333,671		26,805
Commercial MBS, Agency & GSEs	102,718		6,058		485,631		75,218		588,349		81,276
Commercial MBS, Non-agency	—		—		30,089		1,008		30,089		1,008
Corporate bonds	8,746		879		186,121		21,331		194,867		22,210
Asset-backed securities	14,302		102		172,093		5,244		186,395		5,346
Total unrealized loss position	$	467,603	$	19,845	$	2,705,522	$	327,684	$	3,173,125	$	347,529
As of December 31, 2022
U.S. Treasuries	$	49,259	$	724	$	100,093	$	13,896	$	149,352	$	14,620
U.S. Government agencies & GSEs	93,015		2,124		108,093		14,570		201,108		16,694
State and political subdivisions	207,749		9,906		62,606		16,220		270,355		26,126
Residential MBS, Agency & GSEs	1,049,648		102,852		392,288		57,784		1,441,936		160,636
Residential MBS, Non-agency	338,399		27,095		8,263		778		346,662		27,873
Commercial MBS, Agency & GSEs	288,787		17,304		332,088		62,103		620,875		79,407
Commercial MBS, Non-agency	30,566		1,058		—		—		30,566		1,058
Corporate bonds	83,010		7,776		127,603		15,987		210,613		23,763
Asset-backed securities	97,705		2,664		133,567		5,284		231,272		7,948
Total unrealized loss position	$	2,238,138	$	171,503	$	1,264,601	$	186,622	$	3,502,739	$	358,125

At June 30, 2023, there were 678 AFS debt securities and 325 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 June 30, 2023 were primarily attributable to changes in interest rates.

At June 30, 2023 and December 31, 2022, 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 June 30, 2023 or December 31, 2022. In addition, based on the assessments performed at June 30, 2023 and December 31, 2022, 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
	June 30, 2023		December 31, 2022
HTM	$	6,098	$	7,234
AFS	11,859		15,281

The amortized cost and fair value of AFS and HTM debt securities at June 30, 2023, 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	$	232,932	$	232,830	$	—	$	—
U.S. Government agencies & GSEs	338		331		—		—
State and political subdivisions	2,027		1,955		1,200		1,194
Corporate bonds	5,177		5,014		—		—
	240,474		240,130		1,200		1,194
1 to 5 years:
U.S. Treasuries	114,097		100,593		19,849		17,495
U.S. Government agencies & GSEs	39,403		35,781		—		—
State and political subdivisions	15,948		14,904		28,575		26,505
Corporate bonds	156,810		142,227		—		—
	326,258		293,505		48,424		44,000
5 to 10 years:
U.S. Government agencies & GSEs	71,084		63,053		73,352		61,460
State and political subdivisions	59,659		49,693		37,257		31,827
Corporate bonds	56,097		48,643		—		—
Supranational entities	—		—		15,000		12,352
	186,840		161,389		125,609		105,639
More than 10 years:
U.S. Government agencies & GSEs	142,156		137,931		26,427		21,207
State and political subdivisions	105,567		94,549		227,888		179,143
Corporate bonds	802		852		—		—
	248,525		233,332		254,315		200,350
Debt securities not due at a single maturity date:
Asset-backed securities	198,279		192,960		—		—
Residential MBS	1,806,004		1,620,235		1,438,048		1,215,805
Commercial MBS	700,722		618,438		686,239		565,408
	2,705,005		2,431,633		2,124,287		1,781,213
Total	$	3,707,102	$	3,359,989	$	2,553,835	$	2,132,396

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 six months ended June 30, 2023 and 2022 (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Proceeds from sales	$	—	$	73,112	$	380,661	$	281,521
Gross realized gains	$	—	$	46	$	1,373	$	1,009
Gross realized losses	—		—		(3,017)		(4,697)
Securities gains (losses), net	$	—	$	46	$	(1,644)	$	(3,688)
Income tax expense (benefit) attributable to sales	$	—	$	11	$	(374)	$	(979)

XML

Loans and Leases and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2023

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).

	June 30, 2023		December 31, 2022
Owner occupied commercial real estate	$	3,110,612	$	2,734,666
Income producing commercial real estate	3,669,746		3,261,626
Commercial & industrial	2,550,191		2,252,322
Commercial construction	1,739,208		1,597,848
Equipment financing	1,510,326		1,374,251
Total commercial	12,580,083		11,220,713
Residential mortgage	2,905,293		2,355,061
HELOC	926,409		850,269
Residential construction	463,278		442,553
Manufactured housing	339,969		316,741
Consumer	179,813		149,290
Total loans	17,394,845		15,334,627
Less allowance for credit losses - loans	(190,705)		(159,357)
Loans, net	$	17,204,140	$	15,175,270

Accrued interest receivable related to loans totaled $58.0 million and $52.0 million at June 30, 2023 and December 31, 2022, respectively, and was reported in other assets on the consolidated balance sheets. Accrued interest receivable was excluded from the estimate of credit losses.

At June 30, 2023 and December 31, 2022, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Guaranteed portion of SBA/USDA loans	$	22,072	$	39,119	$	43,842	$	67,462
Equipment financing receivables	20,571		20,541		39,274		43,977
Total	$	42,643	$	59,660	$	83,116	$	111,439

At June 30, 2023 and December 31, 2022, equipment financing receivables included leases of $59.8 million and $46.0 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	June 30, 2023		December 31, 2022
Minimum future lease payments receivable	$	65,275	$	49,723
Estimated residual value of leased equipment	3,670		2,804
Initial direct costs	1,131		767
Security deposits	(442)		(429)
Unearned income	(9,788)		(6,877)
Net investment in leases	$	59,846	$	45,988

Minimum future lease payments expected to be received from equipment financing lease contracts as of June 30, 2023 were as follows (in thousands): 

Year
Remainder of 2023	$	11,352
2024	19,503
2025	15,648
2026	10,910
2027	6,564
Thereafter	1,298
Total	$	65,275

Nonaccrual and Past Due Loans

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 June 30, 2023
Owner occupied commercial real estate	$	3,105,295	$	1,842	$	4	$	—	$	3,471	$	3,110,612
Income producing commercial real estate	3,636,300		790		114		—		32,542		3,669,746
Commercial & industrial	2,517,176		1,532		660		—		30,823		2,550,191
Commercial construction	1,738,394		664		35		—		115		1,739,208
Equipment financing	1,494,296		4,087		2,954		—		8,989		1,510,326
Total commercial	12,491,461		8,915		3,767		—		75,940		12,580,083
Residential mortgage	2,889,244		3,408		1,222		—		11,419		2,905,293
HELOC	921,413		2,077		142		—		2,777		926,409
Residential construction	460,627		967		2		—		1,682		463,278
Manufactured housing	320,342		7,311		1,534		—		10,782		339,969
Consumer	178,646		1,063		85		—		19		179,813
Total loans	$	17,261,733	$	23,741	$	6,752	$	—	$	102,619	$	17,394,845
As of December 31, 2022
Owner occupied commercial real estate	$	2,731,574	$	1,522	$	1,047	$	—	$	523	$	2,734,666
Income producing commercial real estate	3,257,232		468		41		—		3,885		3,261,626
Commercial & industrial	2,234,284		3,288		274		6		14,470		2,252,322
Commercial construction	1,597,268		447		—		—		133		1,597,848
Equipment financing	1,362,622		4,285		1,906		—		5,438		1,374,251
Total commercial	11,182,980		10,010		3,268		6		24,449		11,220,713
Residential mortgage	2,342,196		1,939		7		—		10,919		2,355,061
HELOC	844,888		2,709		784		—		1,888		850,269
Residential construction	441,673		20		455		—		405		442,553
Manufactured housing	302,386		6,913		924		—		6,518		316,741
Consumer	148,943		237		48		9		53		149,290
Total loans	$	15,263,066	$	21,828	$	5,486	$	15	$	44,232	$	15,334,627

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

	Nonaccrual Loans
	June 30, 2023						December 31, 2022
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	2,507	$	964	$	3,471	$	276	$	247	$	523
Income producing commercial real estate	32,470		72		32,542		3,798		87		3,885
Commercial & industrial	28,665		2,158		30,823		13,917		553		14,470
Commercial construction	51		64		115		69		64		133
Equipment financing	56		8,933		8,989		85		5,353		5,438
Total commercial	63,749		12,191		75,940		18,145		6,304		24,449
Residential mortgage	1,959		9,460		11,419		2,159		8,760		10,919
HELOC	325		2,452		2,777		430		1,458		1,888
Residential construction	328		1,354		1,682		311		94		405
Manufactured housing	—		10,782		10,782		—		6,518		6,518
Consumer	3		16		19		3		50		53
Total	$	66,364	$	36,255	$	102,619	$	21,048	$	23,184	$	44,232

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 and, for 2023, gross charge-offs by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans by Origination Year												Revolvers		Revolvers converted to term loans		Total
As of June 30, 2023	2023		2022		2021		2020		2019		Prior
Owner occupied commercial real estate:
Pass	$	359,037	$	683,426	$	650,179	$	613,901	$	214,542	$	372,915	$	114,607	$	18,740	$	3,027,347
Special Mention	1,626		5,675		6,968		6,764		8,612		5,260		3,855		268		39,028
Substandard	3,465		8,345		9,095		7,600		3,310		9,471		210		2,741		44,237
Total owner occupied commercial real estate	$	364,128	$	697,446	$	666,242	$	628,265	$	226,464	$	387,646	$	118,672	$	21,749	$	3,110,612
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	207	$	—	$	—	$	207
Income producing commercial real estate:
Pass	$	306,457	$	828,657	$	750,600	$	763,295	$	271,098	$	414,954	$	52,883	$	5,706	$	3,393,650
Special Mention	58,790		22,100		21,311		14,353		31,383		4,974		—		—		152,911
Substandard	22,314		33,196		998		17,216		17,664		31,738		—		59		123,185
Total income producing commercial real estate	$	387,561	$	883,953	$	772,909	$	794,864	$	320,145	$	451,666	$	52,883	$	5,765	$	3,669,746
Current period gross charge-offs	$	—	$	3,033	$	—	$	—	$	—	$	1,781	$	—	$	—	$	4,814
Commercial & industrial
Pass	$	391,898	$	545,473	$	366,189	$	159,719	$	121,611	$	184,837	$	600,042	$	15,490	$	2,385,259
Special Mention	209		478		4,385		476		88		855		18,596		181		25,268
Substandard	21,254		9,594		38,922		13,813		4,264		2,718		46,124		2,975		139,664
Total commercial & industrial	$	413,361	$	555,545	$	409,496	$	174,008	$	125,963	$	188,410	$	664,762	$	18,646	$	2,550,191
Current period gross charge-offs	$	1,330	$	1,132	$	—	$	444	$	198	$	41	$	—	$	1,506	$	4,651
Commercial construction
Pass	$	347,916	$	660,378	$	383,957	$	192,245	$	58,733	$	31,262	$	56,057	$	1,077	$	1,731,625
Special Mention	58		135		28		52		—		—		—		—		273
Substandard	194		4,541		35		2,199		1		100		—		240		7,310
Total commercial construction	$	348,168	$	665,054	$	384,020	$	194,496	$	58,734	$	31,362	$	56,057	$	1,317	$	1,739,208
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equipment financing:
Pass	$	422,344	$	589,302	$	299,127	$	117,201	$	61,859	$	9,413	$	—	$	—	$	1,499,246
Substandard	842		4,497		3,575		1,109		974		83		—		—		11,080
Total equipment financing	$	423,186	$	593,799	$	302,702	$	118,310	$	62,833	$	9,496	$	—	$	—	$	1,510,326
Current period gross charge-offs	$	—	$	3,129	$	3,086	$	895	$	389	$	280	$	—	$	—	$	7,779
Residential mortgage:
Pass	$	446,768	$	988,186	$	758,310	$	337,356	$	90,331	$	266,705	$	477	$	3,516	$	2,891,649
Substandard	214		1,505		1,680		912		1,648		7,499		—		186		13,644
Total residential mortgage	$	446,982	$	989,691	$	759,990	$	338,268	$	91,979	$	274,204	$	477	$	3,702	$	2,905,293
Current period gross charge-offs	$	—	$	23	$	—	$	—	$	—	$	22	$	—	$	—	$	45
Home equity lines of credit
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	26,231	$	923,328
Substandard	—		—		—		—		—		—		—		3,081		3,081
Total home equity lines of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	29,312	$	926,409
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	145	$	145
Residential construction
Pass	$	174,579	$	239,543	$	32,086	$	6,143	$	1,417	$	7,349	$	—	$	31	$	461,148
Substandard	224		1,324		430		—		18		134		—		—		2,130
Total residential construction	$	174,803	$	240,867	$	32,516	$	6,143	$	1,435	$	7,483	$	—	$	31	$	463,278
Current period gross charge-offs	$	—	$	637	$	—	$	—	$	—	$	—	$	—	$	—	$	637
Manufactured housing
Pass	$	35,151	$	74,072	$	52,438	$	46,466	$	33,278	$	86,573	$	—	$	—	$	327,978
Substandard	260		3,304		2,109		1,702		1,090		3,526		—		—		11,991
Total consumer	$	35,411	$	77,376	$	54,547	$	48,168	$	34,368	$	90,099	$	—	$	—	$	339,969
Current period gross charge-offs	$	3	$	434	$	201	$	268	$	105	$	263	$	—	$	—	$	1,274
Consumer
Pass	$	57,267	$	53,898	$	25,280	$	12,381	$	2,263	$	1,977	$	26,518	$	119	$	179,703
Substandard	—		1		60		28		—		21		—		—		110
Total consumer	$	57,267	$	53,899	$	25,340	$	12,409	$	2,263	$	1,998	$	26,518	$	119	$	179,813
Current period gross charge-offs	$	1,838	$	103	$	62	$	24	$	13	$	1	$	2	$	101	$	2,144

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	669,451	$	671,395	$	611,900	$	204,990	$	127,738	$	253,890	$	114,975	$	5,779	$	2,660,118
Income producing commercial real estate	812,804		753,936		733,946		248,259		171,108		255,485		50,026		9,953		3,035,517
Commercial & industrial	535,594		388,851		186,292		134,789		119,547		71,503		670,161		15,880		2,122,617
Commercial construction	732,147		391,963		256,087		78,778		11,977		19,973		70,819		1,433		1,563,177
Equipment financing	714,044		374,030		162,463		93,690		22,753		1,214		—		—		1,368,194
Total commercial	3,464,040		2,580,175		1,950,688		760,506		453,123		602,065		905,981		33,045		10,749,623
Residential mortgage	894,960		742,821		329,762		91,300		55,785		223,846		8		3,133		2,341,615
HELOC	—		—		—		—		—		—		824,153		23,948		848,101
Residential construction	344,443		82,289		4,478		1,742		1,545		7,549		—		31		442,077
Manufactured housing	78,097		54,976		48,908		34,836		31,060		61,148		—		—		309,025
Consumer	71,899		29,322		15,406		3,987		1,837		588		25,963		126		149,128
	4,853,439		3,489,583		2,349,242		892,371		543,350		895,196		1,756,105		60,283		14,839,569
Special Mention
Owner occupied commercial real estate	4,236		8,036		4,641		10,299		1,232		11,596		3,875		279		44,194
Income producing commercial real estate	41,423		1,137		44,802		32,821		21,647		50		805		—		142,685
Commercial & industrial	1,695		21,745		2,686		1,047		1,244		167		10,449		309		39,342
Commercial construction	850		33		1,640		13,237		4,891		28		—		—		20,679
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Substandard
Owner occupied commercial real estate	9,835		77		2,873		4,490		1,204		8,055		209		3,611		30,354
Income producing commercial real estate	52,384		1,357		1,867		4,180		13,209		10,365		—		62		83,424
Commercial & industrial	10,431		19,477		3,880		4,557		11,019		1,189		39,333		477		90,363
Commercial construction	133		—		45		2		3,876		9,693		—		243		13,992
Equipment financing	1,625		2,160		1,303		705		236		28		—		—		6,057
Total commercial	74,408		23,071		9,968		13,934		29,544		29,330		39,542		4,393		224,190
Residential mortgage	1,195		964		1,364		1,836		2,589		5,296		—		202		13,446
HELOC	—		—		—		—		—		—		93		2,075		2,168
Residential construction	32		268		—		20		3		153		—		—		476
Manufactured housing	1,130		1,267		1,427		990		1,188		1,714		—		—		7,716
Consumer	20		77		34		1		25		4		1		—		162
	76,785		25,647		12,793		16,781		33,349		36,497		39,636		6,670		248,158
Total	$	4,978,428	$	3,546,181	$	2,415,804	$	966,556	$	605,713	$	943,534	$	1,810,870	$	67,541	$	15,334,627

Modifications to Borrowers Experiencing Financial Difficulty

The period end amortized cost of loans modified under the terms of a FDM during the six months ended June 30, 2023 are presented in the following table (in thousands).

	New FDMs
	Post-Modification Amortized Cost by Type of Modification
	Extension		Payment Delay		Rate Reduction & Extension		Total		% of Total Class of Receivable
Six Months Ended June 30, 2023
Income producing commercial real estate	$	38,138	$	—	$	21,202	$	59,340	1.6	%
Commercial & industrial	2,718		29,517		—		32,235		1.3
Equipment financing	8,069		—		—		8,069		0.5
Residential mortgage	57		—		630		687		—
Manufactured housing	—		—		259		259		0.1
Total loans	$	48,982	$	29,517	$	22,091	$	100,590	0.6

Extensions for equipment financing FDMs typically consist of one or more three-month extensions beyond the original maturity date. For the remainder of extension FDMs occurring during the first six months of 2023, the weighted average extension granted was approximately eight months.

Commercial and industrial payment delay FDMs include $22.7 million of loans in bankruptcy status. Excluding bankruptcy status loans, the remainder of FDMs in this category had a weighted average payment delay of approximately three months.

During the six months ended June 30, 2023, FDMs categorized as rate reduction and extensions in the income producing commercial real estate category resulted in a decrease in weighted average interest rate of 57 basis points and extended the weighted average maturity by 3 years. Residential mortgage and manufactured housing FDMs resulted in a decrease in weighted average interest rate of 576 basis points and extended the weighted average maturity by 15 years.

There have been no FDMs modified during 2023 that have subsequently defaulted under modified loan terms.

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 June 30, 2023 and December 31, 2022, 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 charge-off experience to produce an expected default rate, with the results subject to a floor. In the case of residential construction, commercial construction and multifamily loans (included in income producing commercial real estate), the expected default rate was adjusted by a model overlay based on expectations of future performance. For the second quarter of 2023, management applied qualitative factors to the model output for the residential mortgage, residential construction and income producing commercial real estate portfolios to account for observable differences in national economic trends reflected in the economic forecast that are not being observed at the same level of severity within United’s geographic footprint.

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 most collateral types, 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 for changes in lending practices designed to mitigate the magnitude of losses observed during the 2008 mortgage crisis.

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

	Three Months Ended June 30,
	2023										2022
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	20,831	$	—	$	205	$	752	$	21,788	$	15,945	$	—	$	1,496	$	(667)	$	16,774
Income producing commercial real estate	33,607		(2,033)		849		6,352		38,775		33,539		—		116		(371)		33,284
Commercial & industrial	28,312		(3,753)		1,007		4,290		29,856		18,386		(1,011)		1,313		(421)		18,267
Commercial construction	22,073		—		105		98		22,276		13,782		—		144		2,136		16,062
Equipment financing	26,195		(3,752)		1,215		4,946		28,604		19,264		(1,709)		802		52		18,409
Residential mortgage	24,082		(26)		69		1,306		25,431		14,964		—		51		2,020		17,035
HELOC	10,337		(24)		83		213		10,609		7,128		—		346		13		7,487
Residential construction	2,043		(637)		14		2,026		3,446		1,929		—		76		81		2,086
Manufactured housing	8,424		(620)		—		1,400		9,204		7,083		(135)		—		(334)		6,614
Consumer	630		(1,327)		226		1,187		716		785		(728)		308		542		907
ACL - loans	176,534		(12,172)		3,773		22,570		190,705		132,805		(3,583)		4,652		3,051		136,925
ACL - unfunded commitments	21,389		—		—		183		21,572		13,564		—		—		2,553		16,117
Total ACL	$	197,923	$	(12,172)	$	3,773	$	22,753	$	212,277	$	146,369	$	(3,583)	$	4,652	$	5,604	$	153,042

	Six Months Ended June 30,
	2023												2022
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Initial ACL - PCD loans (1)		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	19,834	$	181	$	(207)	$	322	$	1,658	$	21,788	$	14,282	$	266	$	—	$	1,541	$	685	$	16,774
Income producing commercial real estate	32,082		307		(4,814)		1,324		9,876		38,775		24,156		4,366		—		406		4,356		33,284
Commercial & industrial	23,504		1,358		(4,651)		1,680		7,965		29,856		16,592		2,337		(4,605)		1,978		1,965		18,267
Commercial construction	20,120		39		—		142		1,975		22,276		9,956		2,857		(41)		558		2,732		16,062
Equipment financing	23,395		—		(7,779)		1,867		11,121		28,604		16,290		—		(2,657)		1,483		3,293		18,409
Residential mortgage	20,809		157		(45)		175		4,335		25,431		12,390		385		(53)		201		4,112		17,035
HELOC	8,707		534		(145)		171		1,342		10,609		6,568		60		(9)		436		432		7,487
Residential construction	2,049		124		(637)		29		1,881		3,446		1,847		1		—		99		139		2,086
Manufactured housing	8,098		—		(1,274)		26		2,354		9,204		—		2,438		(308)		9		4,475		6,614
Consumer	759		4		(2,144)		477		1,620		716		451		27		(1,534)		587		1,376		907
ACL - loans	159,357		2,704		(21,696)		6,213		44,127		190,705		102,532		12,737		(9,207)		7,298		23,565		136,925
ACL - unfunded commitments	21,163		—		—		—		409		21,572		10,992		—		—		—		5,125		16,117
Total ACL	$	180,520	$	2,704	$	(21,696)	$	6,213	$	44,536	$	212,277	$	113,524	$	12,737	$	(9,207)	$	7,298	$	28,690	$	153,042

(1) Represents the initial ACL related to PCD loans acquired in the Progress and Reliant transactions during the six months ended June 30, 2023 and 2022, respectively.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2023

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):

	June 30, 2023						December 31, 2022
	Notional Amount (1)		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	$	16,261	$	—	$	100,000	$	16,191	$	—
Cash flow hedge of trust preferred securities	40,000		—		—		20,000		—		—
Fair value hedge of AFS debt securities	677,473		—		—		—		—		—
Total	817,473		16,261		—		120,000		16,191		—
Derivatives not designated as hedging instruments:
Customer derivative positions	2,034,468		874		91,307		1,097,578		341		86,358
Dealer offsets to customer derivative positions	1,803,106		29,360		901		1,097,578		22,393		274
Risk participations	130,392		—		22		88,586		15		1
Mortgage banking - loan commitment	48,090		991		2		19,685		394		—
Mortgage banking - forward sales commitment	100,140		383		14		49,750		198		71
Bifurcated embedded derivatives	51,935		10,881		—		51,935		11,104		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		12,540		51,935		—		12,839
Total	4,220,066		42,489		104,786		2,457,047		34,445		99,543
Total derivatives	$	5,037,539	$	58,750	$	104,786	$	2,577,047	$	50,636	$	99,543
Total gross derivative instruments			$	58,750	$	104,786			$	50,636	$	99,543
Less: Amounts subject to master netting agreements			(916)		(916)				(346)		(346)
Less: Cash collateral received/pledged			(46,248)		(12,801)				(38,386)		(13,089)
Net amount			$	11,586	$	91,069			$	11,904	$	86,108

(1) At June 30, 2023, LIBOR-based customer derivative positions and derivatives cleared centrally through the CME included both a short-dated contract and a long-dated contract to facilitate the transition from LIBOR to SOFR. The short-dated contracts mature at the first reset date after June 30, 2023.

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 June 30, 2023 and December 31, 2022, 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 $5.55 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 investments and 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. During the second quarter of 2023, United entered into fair value hedges on stated amounts of closed portfolios of AFS debt securities using the portfolio layer method.

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

	Affected Income Statement Line Item	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Fair value hedges:
Brokered time deposits:
Net income recognized	Interest expense- deposits	$	—	$	—	$	—	$	28
AFS securities:
Recognized on derivative interest settlements		$	2,310	$	—	$	2,310	$	—
Recognized on derivatives		13,889		—		13,889		—
Recognized on hedged items		(15,289)		—		(15,289)		—
Net income recognized	Interest revenue- investment securities	$	910	$	—	$	910	$	—
Cash flow hedges:
Long-term debt (1)	Interest expense- long term debt	$	1,234	$	(106)	$	2,056	$	(247)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $112,000 and $118,000 for the three months ended June 30, 2023 and 2022, respectively, and $229,000 and $234,000 for the six months ended June 30, 2023 and 2022, respectively.

The table below presents the carrying amount of hedged AFS debt securities and cumulative fair value hedging adjustments included in the carrying amount of the hedged asset for the periods presented (in thousands). All fair value hedges of AFS debt securities at June 30, 2023 were designated under the the portfolio layer method. At June 30, 2023, the aggregate designated hedged items using the portfolio layer method had a notional amount of $677 million.

	June 30, 2023
Balance Sheet Location	Amortized Cost(1)		Hedge Accounting Basis Adjustment
Debt securities AFS	$	804,658	$	(15,289)

(1) Excludes cumulative hedge accounting basis adjustment.

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 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 June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Customer derivatives and dealer offsets	Other noninterest income	$	545	$	445	$	912	$	1,214
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(474)		85		(1,007)		198
Mortgage banking derivatives	Mortgage loan revenue	174		2,616		1,401		7,250
Risk participations	Other noninterest income	154		93		142		94
		$	399	$	3,239	$	1,448	$	8,756

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.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2023

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).  

	June 30, 2023		December 31, 2022
Core deposit intangible	$	86,880	$	46,900
Less: accumulated amortization	(32,665)		(26,112)
Net core deposit intangible	54,215		20,788
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(1,510)		(1,114)
Net customer relationship intangible	6,890		7,286
Total intangibles subject to amortization, net (1)	61,105		28,074
Goodwill	896,718		751,174
Total goodwill and other intangible assets, net	$	957,823	$	779,248

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

During the first quarter of 2023, as a result of the Progress acquisition, United recorded a core deposit intangible of $40.0 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance, beginning of period (1)	$	896,718	$	751,174	$	751,174	$	452,007
Acquisitions	—		—		145,544		299,167
Balance, end of period (1)	$	896,718	$	751,174	$	896,718	$	751,174

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2022.

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

Remainder of 2023	$	6,521
2024	11,791
2025	10,031
2026	8,491
2027	6,950
Thereafter	17,321
Total	$	61,105

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Preferred Stock	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Preferred Stock	Preferred StockIn May 2023, United’s Board of Directors approved a preferred stock repurchase program, authorizing United to repurchase up to $25.0 million of its outstanding Series I Non-Cumulative Preferred Stock directly or through the repurchase of depositary shares representing 1/1000th of a share of Series I Non-Cumulative Preferred Stock. The program is scheduled to expire on the earlier of the repurchase of preferred stock having an aggregate purchase price of $25.0 million or December 31, 2023. During the three and six months ended June 30, 2023, 10,668 depositary shares were repurchased. As of June 30, 2023, United had remaining authorization to repurchase up to $24.8 million of outstanding preferred stock under the program.

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Assets and Liabilities Measured at Fair Value

6 Months Ended

Jun. 30, 2023

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. As of December 31, 2022, United had certain mortgage loans held for sale that were acquired from Reliant for which the fair value option was not elected; these loans were carried at the lower of aggregate cost or fair value. These loans were subsequently sold during the first half of 2023.

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 when 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).

June 30, 2023	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	333,423	$	—	$	—	$	333,423
U.S. Government agencies & GSEs	—		237,096		—		237,096
State and political subdivisions	—		161,101		—		161,101
Residential MBS	—		1,620,235		—		1,620,235
Commercial MBS	—		618,438		—		618,438
Corporate bonds	—		194,553		2,183		196,736
Asset-backed securities	—		192,960		—		192,960
Equity securities with readily determinable fair values	10,651		1,532		—		12,183
Mortgage loans held for sale	—		27,104		—		27,104
Deferred compensation plan assets	11,728		—		—		11,728
Servicing rights for SBA/USDA loans	—		—		6,148		6,148
Residential mortgage servicing rights	—		—		37,194		37,194
Derivative financial instruments	—		46,878		11,872		58,750
Total assets	$	355,802	$	3,099,897	$	57,397	$	3,513,096
Liabilities:
Deferred compensation plan liability	$	11,766	$	—	$	—	$	11,766
Derivative financial instruments	—		92,222		12,564		104,786
Total liabilities	$	11,766	$	92,222	$	12,564	$	116,552

December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	149,352	$	—	$	—	$	149,352
U.S. Government agencies & GSEs	—		250,116		—		250,116
State and political subdivisions	—		303,748		—		303,748
Residential MBS	—		1,795,481		—		1,795,481
Commercial MBS	—		671,912		—		671,912
Corporate bonds	—		210,240		2,212		212,452
Asset-backed securities	—		231,272		—		231,272
Equity securities with readily determinable fair values	12,278		1,359		—		13,637
Mortgage loans held for sale	—		11,794		—		11,794
Deferred compensation plan assets	11,436		—		—		11,436
Servicing rights for SBA/USDA loans	—		—		5,188		5,188
Residential mortgage servicing rights	—		—		36,559		36,559
Derivative financial instruments	—		39,123		11,513		50,636
Total assets	$	173,066	$	3,515,045	$	55,472	$	3,743,583
Liabilities:
Deferred compensation plan liability	$	11,460	$	—	$	—	$	11,460
Derivative financial instruments	—		86,703		12,840		99,543
Total liabilities	$	11,460	$	86,703	$	12,840	$	111,003

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).

	2023										2022
	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 June 30,
Beginning balance	$	11,348	$	11,195	$	6,289	$	36,081	$	2,227	$	7,902	$	8,531	$	6,962	$	32,641	$	2,332
Additions	—		167		464		848		—		—		99		800		1,723		—
Sales and settlements	—		—		(231)		(496)		—		—		(1)		(408)		(638)		—
Fair value adjustments included in OCI	—		—		—		—		(44)		—		—		—		—		(45)
Fair value adjustments included in earnings	524		1,202		(374)		761		—		2,297		2,166		(1,187)		1,405		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287
Six Months Ended June 30,
Beginning balance	$	11,513	$	12,840	$	5,188	$	36,559	$	2,212	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395
Business combinations	—		—		95		—		—		—		—		—		—		—
Additions	—		170		924		1,480		—		—		99		1,388		3,890		—
Transfers from Level 3	—		—		—		—		—		(290)		—		—		—		—
Sales and settlements	(11)		—		(451)		(948)		—		—		(1)		(637)		(1,314)		—
Fair value adjustments included in OCI	—		—		—		—		(29)		—		—		—		—		(108)
Fair value adjustments included in earnings	370		(446)		392		103		—		3,731		5,649		(1,097)		7,394		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287

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	June 30, 2023			December 31, 2022
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	8.0% - 25.0%	13.2	%	11.9% - 25.0%	17.5	%
		Prepayment rate	0.4 - 35.4	16.9		0.0 - 35.4	16.4
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 11.5	9.5
		Prepayment rate	7.0 - 29.5	7.7		7.0 - 31.2	7.5
Corporate bonds	Discounted cash flow	Discount rate	6.6 - 7.2	6.9		6.1 - 6.4	6.3
Derivative assets - mortgage	Internal model	Pull through rate	60.0 - 100	89.4		26.5 - 100	90.7
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
	June 30, 2023		December 31, 2022
Outstanding principal balance	$	26,520	$	11,473
Fair value	27,104		11,794

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Mortgage loan gains and other related fees	$	33	$	163	$	264	$	(1,011)

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 June 30, 2023 and December 31, 2022, 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
June 30, 2023
Loans held for investment	$	—	$	—	$	31,148	$	31,148
December 31, 2022
Loans held for investment	$	—	$	—	$	7,808	$	7,808
Mortgage loans held for sale	—		—		1,806		1,806

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 December 31, 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. These loans were subsequently sold during the first half of 2023.

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
June 30, 2023
Assets:
HTM debt securities	$	2,553,835	$	17,495	$	2,114,901	$	—	$	2,132,396
Loans and leases, net	17,204,140		—		—		16,591,141		16,591,141
Liabilities:
Deposits	22,251,988		—		22,245,777		—		22,245,777
Long-term debt	324,754		—		—		304,481		304,481
December 31, 2022
Assets:
HTM debt securities	$	2,613,648	$	17,417	$	2,173,656	$	—	$	2,191,073
Loans and leases, net	15,175,270		—		—		14,609,239		14,609,239
Liabilities:
Deposits	19,876,507		—		19,863,380		—		19,863,380
FHLB advances	550,000		—		—		549,913		549,913
Long-term debt	324,663		—		—		313,380		313,380

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

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 June 30, 2023, 2.51 million additional awards could be granted under the plan.

The table below presents restricted stock unit and option activity for the six months ended June 30, 2023.

	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, 2022	778,686	$	28.28			40,338	$	11.88
Granted	292,631	30.33				643,298	20.91
Released / Exercised	(121,277)	27.18		$	3,855	(164,864)	17.96			$	1,584
Cancelled	(27,980)	28.51				(4,620)	25.97
Outstanding at June 30, 2023	922,060	29.07		23,042		514,152	21.10		5.6	2,082
Vested / Exercisable at June 30, 2023	—	—				514,152	21.10		5.6	2,082

Options granted in 2023 reflect fully vested options assumed in the Progress acquisition, with the weighted average exercise price of Progress’ fully vested converted options determined pursuant to the purchase agreement. The value of the Progress 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 six months ended June 30, 2023 and 2022.

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 six months ended June 30, 2023 and 2022, expense of $4.46 million and $4.62 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 six months ended June 30, 2023 and 2022, $331,000 and $238,000, 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 $1.22 million and $1.24 million was included in the determination of income tax expense for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $20.2 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 2.4 years.

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Reclassifications Out of AOCI

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,				Affected Line Item in the Statement Where Net Income is Presented
	2023		2022		2023		2022
Realized losses on AFS securities:
	$	—	$	46	$	(1,644)	$	(3,688)	Securities gains (losses), net
	—		(11)		374		979		Income tax (expense) benefit
	$	—	$	35	$	(1,270)	$	(2,709)	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(2,518)	$	(1,769)	$	(5,486)	$	(1,769)	Investment securities interest revenue
	604		422		1,324		422		Income tax benefit
	$	(1,914)	$	(1,347)	$	(4,162)	$	(1,347)	Net of tax
Reclassifications related to derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	1,234	$	(106)	$	2,056	$	(247)	Long-term debt interest expense
	(315)		27		(525)		63		Income tax (expense) benefit
	$	919	$	(79)	$	1,531	$	(184)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(61)	$	(93)	$	(122)	$	(185)	Salaries and employee benefits expense
Actuarial losses	—		(78)		—		(156)		Other expense
	(61)		(171)		(122)		(341)		Total before tax
	15		44		31		87		Income tax benefit
	$	(46)	$	(127)	$	(91)	$	(254)	Net of tax
Total reclassifications for the period	$	(1,041)	$	(1,518)	$	(3,992)	$	(4,494)	Net of tax

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	63,288	$	66,842	$	125,588	$	114,861
Dividends on preferred stock	(1,719)		(1,719)		(3,438)		(3,438)
Earnings allocated to participating securities	(342)		(362)		(680)		(596)
Net income available to common shareholders	$	61,227	$	64,761	$	121,470	$	110,827
Weighted average shares outstanding:
Basic	115,774		106,610		115,614		106,580
Effect of dilutive securities:
Stock options	95		36		166		41
Restricted stock units	—		70		15		76
Diluted	115,869		106,716		115,795		106,697
Net income per common share:
Basic	$	0.53	$	0.61	$	1.05	$	1.04
Diluted	$	0.53	$	0.61	$	1.05	$	1.04

At June 30, 2023, United excluded from the above analysis 78,412 potentially dilutive shares of common stock issuable upon exercise of stock options because of their antidilutive effect. At June 30, 2022, United had no potentially dilutive instruments outstanding that were not included in the above analysis.

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Regulatory Matters

6 Months Ended

Jun. 30, 2023

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Matters

Regulatory Matters

As of June 30, 2023, 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 June 30, 2023, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

Regulatory capital ratios at June 30, 2023 and December 31, 2022, 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		June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.19		%	12.26		%	12.42		%	12.83		%
Tier 1 capital	6.0		8.0		12.69			12.81			12.42			12.83
Total capital	8.0		10.0		14.57			14.79			13.39			13.70
Leverage ratio	4.0		5.0		9.79			9.69			9.56			9.69
CET1 capital					$	2,366,637		$	2,164,211		$	2,400,649		$	2,255,337
Tier 1 capital					2,462,802			2,260,633			2,400,649			2,255,337
Total capital					2,827,580			2,610,216			2,589,591			2,408,895
Risk-weighted assets					19,409,980			17,648,573			19,335,994			17,583,347
Average total assets for the leverage ratio					25,160,884			23,322,018			25,120,784			23,285,253

(1) As of June 30, 2023 and December 31, 2022 the additional capital conservation buffer in effect was 2.50%

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

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).

	June 30, 2023		December 31, 2022
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,755,317	$	4,683,790
Letters of credit	55,652		46,896

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.

Tax Credit and Certain Equity Investments

United invests in certain LIHTC partnerships throughout its market area as a means of supporting local communities, as well as in entities that promote renewable energy sources. United receives tax credits related to these investments. For certain of the investments, United provides financing during the construction and development phase of the related projects and/or permanent financing upon completion of the project. United has concluded that these partnerships are VIEs of which it is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact the VIEs' financial performance and, therefore, is not required to consolidate these VIEs. United's maximum potential exposure to losses relative to investments in these VIEs is generally limited to the sum of the outstanding investment balance, any future funding commitments and the balance of any related loans to the entity. Loans to these entities are underwritten in substantially the same manner as other loans and are generally secured.

United also has investments in and future funding commitments related to fintech fund limited partnerships, other community development entities and certain other equity method investments. United has concluded that these partnerships are VIEs of which it is not the primary beneficiary because it does not have the power to direct the activities that most significantly impact the VIEs' financial performance and, therefore, is not required to consolidate these VIEs. The risk exposure relating to such commitments is generally limited to the amount invested by United and any future funding commitments.

The following table summarizes, as of the dates indicated, tax credit and certain equity method investments (in thousands):

	Balance Sheet Location	June 30, 2023		December 31, 2022
Investments in LIHTC:
Carrying amount	Other assets	$	52,112	$	50,054
Amount of future funding commitments included in carrying amount	Other liabilities	15,292		18,090
Renewable energy investments:
Carrying amount	Other assets	39,737		19,617
Amount of future funding commitments included in carrying amount	Other liabilities	20,360		18,781
Fintech funds and certain other equity method investments:
Carrying amount	Other assets	32,722		27,569
Amount of future funding commitments included in carrying amount	Other liabilities	470		470
Amount of future funding commitments not included in carrying amount	N/A	26,568		23,690

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Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Acquisition of First Miami

Subsequent to quarter-end, on July 1, 2023, United acquired all of the outstanding common stock of First Miami in a stock transaction. First Miami is headquartered in South Miami, Florida, and operates three offices in the Miami metropolitan area. As of June 30, 2023, First Miami had total assets of $992 million, total loans of $618 million, and total deposits of $836 million. In addition to traditional banking products, First Miami offers private banking, trust and wealth management with approximately $308 million in assets under administration as of June 30, 2023.

First Miami shareholders received 3.5 million shares of United common stock valued at $87.7 million. The acquisition will be accounted for as a business combination. Due to the timing of the acquisition, United is currently in the process of completing the purchase accounting and has not made all of the remaining required disclosures, such as the fair value of assets acquired and supplemental pro forma information, which will be disclosed in subsequent filings.

Preferred Share Repurchases

Subsequent to quarter-end through August 3, 2023, United repurchased 167,322 depositary shares of preferred stock totaling $3.45 million through its preferred stock repurchase program. As of August 3, 2023, United had remaining authorization to repurchase up to $21.3 million of outstanding preferred stock under the program.

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Basis of Presentation and Updates to Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

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 2022 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 2022 10-K.

Updates to Significant Accounting Policies, Recently Adopted Standards and Recently Issued Standards

Updates to Significant Accounting Policies

Effective January 1, 2023, United adopted ASU 2022-02, which updated the guidance on modifications to financing receivables by effectively replacing the concept of troubled debt restructurings with a new concept, loan modifications to borrowers experiencing financial difficulty. See Note 2 for further detail. Below summarizes the policy surrounding FDMs.

FDMs: A loan for which the terms have been modified as a result of the borrower experiencing financial difficulty is generally considered to be a FDM. Modified terms that result in a FDM include one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the term or amortization period, a more than insignificant payment delay or principal forgiveness. The ACL on FDMs is calculated using the same method as other loans held for investment.

Recently Adopted Standards

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from contracts with Customers. The update requires that an acquiring entity apply the guidance from Revenue from Contracts with Customers (Topic 606) to recognize and measure contract assets and contract liabilities in a business combination, rather than fair value. Adoption of this update as of January 1, 2023 did not have a material impact on the consolidated financial statements.

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. Adoption of this update as of January 1, 2023 did not 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. United adopted this update using a modified retrospective transition method as of January 1, 2023. The quantitative impact of adoption related to the CECL calculation for FDMs was not material; thus, no corresponding cumulative effect adjustment to retained earnings was recorded.

Recently Issued Standards

In March 2022, the FASB issued ASU No 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The update broadens the application of the proportional amortization method to tax equity investments other than LIHTC, providing certain conditions are met. The election to apply the proportional amortization method must be made on a tax-credit-program by tax-credit-program basis rather than at the reporting entity level or to individual investments. The update also requires certain disclosures related to those investments for which the proportional amortization method has been applied. 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.

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023 and 2022 is as follows (in thousands).

	Six Months Ended June 30,
	2023		2022
Significant non-cash investing and financing transactions:
Commitments to fund equity investments	$	11,093	$	—
Transfers of AFS securities to HTM securities	—		1,288,982
Acquisitions:
Assets acquired	1,903,930		3,254,173
Liabilities assumed	1,597,022		2,657,173
Net assets acquired	306,908		597,000
Common stock issued and options converted	306,461		596,376

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

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 (dollars in thousands). 

Progress
	Fair Value Recorded by United (1)
		January 3, 2023
	Assets
	Cash and cash equivalents	$	57,548
	Debt securities	111,006
	Loans held for sale	2,087
	Loans held for investment	1,442,959
	Premises and equipment	21,118
	Bank-owned life insurance	40,723
	Core deposit intangible	39,980
	Other assets	42,965
	Total assets acquired	1,758,386
	Liabilities
	Deposits	1,334,476
	Short-term borrowings	141,017
	Federal Home Loan Bank advances	95,000
	Other liabilities	26,529
	Total liabilities assumed	1,597,022
	Total identifiable net assets	161,364
	Consideration transferred
	Cash	447
	Common stock issued (8,770,531 shares)	296,444
	Options converted	10,017
	Total fair value of consideration transferred	306,908
	Goodwill	$	145,544

(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 Progress loan portfolio at the acquisition date (in thousands).

	January 3, 2023
PCD loans:
Par value	$	64,913
ACL at acquisition	(2,704)
Non-credit discount	(150)
Purchase price	$	62,059
Non-PCD loans:
Fair value	$	1,380,900
Gross contractual amounts receivable	1,626,243
Estimate of contractual cash flows not expected to be collected	9,287

Schedule of Actual Results and Pro Forma Information

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

	Three Months Ended June 30,				Six Months Ended June 30,
	Revenue		Net Income		Revenue		Net Income
2023
Actual Progress results included in statement of income since acquisition date	$	17,969	$	3,288	$	24,621	$	5,098
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022	213,509		64,832		443,050		140,041
2022
Actual Reliant results included in statement of income since acquisition date	$	29,172	$	15,550	$	43,086	$	16,148
Supplemental consolidated pro forma as if Progress had been acquired January 1, 2022 and Reliant had been acquired January 1, 2021	$	225,984	$	73,656	$	430,853	$	131,038

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023
U.S. Treasuries	$	19,849	$	—	$	2,354	$	17,495
U.S. Government agencies & GSEs	99,779		—		17,112		82,667
State and political subdivisions	294,920		23		56,274		238,669
Residential MBS, Agency & GSEs	1,438,048		13		222,256		1,215,805
Commercial MBS, Agency & GSEs	686,239		—		120,831		565,408
Supranational entities	15,000		—		2,648		12,352
Total	$	2,553,835	$	36	$	421,475	$	2,132,396
As of December 31, 2022
U.S. Treasuries	$	19,834	$	—	$	2,417	$	17,417
U.S. Government agencies & GSEs	99,679		—		18,169		81,510
State and political subdivisions	295,945		56		64,340		231,661
Residential MBS, Agency & GSEs	1,488,028		35		223,566		1,264,497
Commercial MBS, Agency & GSEs	695,162		—		111,586		583,576
Supranational entities	$	15,000	$	—	$	2,588	$	12,412
Total	$	2,613,648	$	91	$	422,666	$	2,191,073

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). During the second quarter of 2023, United entered into fair value hedges on stated amounts of a closed portfolio of AFS debt securities using the portfolio layer method, which is further explained in Note 7.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
As of June 30, 2023
U.S. Treasuries	$	347,029	$	34	$	13,640	$	333,423
U.S. Government agencies & GSEs	252,981		295		16,180		237,096
State and political subdivisions	183,201		—		22,100		161,101
Residential MBS, Agency & GSEs	1,445,528		—		158,964		1,286,564
Residential MBS, Non-agency	360,476		—		26,805		333,671
Commercial MBS, Agency & GSEs	669,625		—		81,276		588,349
Commercial MBS, Non-agency	31,097		—		1,008		30,089
Corporate bonds	218,886		60		22,210		196,736
Asset-backed securities	198,279		27		5,346		192,960
Total	3,707,102		416		347,529		3,359,989
As of December 31, 2022
U.S. Treasuries	$	163,972	$	—	$	14,620	$	149,352
U.S. Government agencies & GSEs	266,347		463		16,694		250,116
State and political subdivisions	329,723		151		26,126		303,748
Residential MBS, Agency & GSEs	1,609,442		13		160,636		1,448,819
Residential MBS, Non-agency	374,535		—		27,873		346,662
Commercial MBS, Agency & GSEs	720,282		471		79,407		641,346
Commercial MBS, Non-agency	31,624		—		1,058		30,566
Corporate bonds	236,181		34		23,763		212,452
Asset-backed securities	239,220		—		7,948		231,272
Total	$	3,971,326	$	1,132	$	358,125	$	3,614,333

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 June 30, 2023
U.S. Treasuries	$	—	$	—	$	17,495	$	2,354	$	17,495	$	2,354
U.S. Government agencies & GSEs	—		—		82,667		17,112		82,667		17,112
State and political subdivisions	22,629		220		211,786		56,054		234,415		56,274
Residential MBS, Agency & GSEs	55,552		3,332		1,158,955		218,924		1,214,507		222,256
Commercial MBS, Agency & GSEs	6,479		220		558,928		120,611		565,407		120,831
Supranational entities	—		—		12,352		2,648		12,352		2,648
Total unrealized loss position	$	84,660	$	3,772	$	2,042,183	$	417,703	$	2,126,843	$	421,475
As of December 31, 2022
U.S. Treasuries	$	17,417	$	2,417	$	—	$	—	$	17,417	$	2,417
U.S. Government agencies & GSEs	10,687		1,813		70,823		16,356		81,510		18,169
State and political subdivisions	104,243		20,639		117,115		43,701		221,358		64,340
Residential MBS, Agency & GSEs	296,673		38,289		965,785		185,277		1,262,458		223,566
Commercial MBS, Agency & GSEs	176,848		24,497		406,728		87,089		583,576		111,586
Supranational entities	12,412		2,588		—		—		12,412		2,588
Total unrealized loss position	$	618,280	$	90,243	$	1,560,451	$	332,423	$	2,178,731	$	422,666

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 June 30, 2023
U.S. Treasuries	$	49,170	$	16	$	150,685	$	13,624	$	199,855	$	13,640
U.S. Government agencies & GSEs	64,447		509		127,787		15,671		192,234		16,180
State and political subdivisions	552		33		160,549		22,067		161,101		22,100
Residential MBS, Agency & GSEs	219,050		11,928		1,067,514		147,036		1,286,564		158,964
Residential MBS, Non-agency	8,618		320		325,053		26,485		333,671		26,805
Commercial MBS, Agency & GSEs	102,718		6,058		485,631		75,218		588,349		81,276
Commercial MBS, Non-agency	—		—		30,089		1,008		30,089		1,008
Corporate bonds	8,746		879		186,121		21,331		194,867		22,210
Asset-backed securities	14,302		102		172,093		5,244		186,395		5,346
Total unrealized loss position	$	467,603	$	19,845	$	2,705,522	$	327,684	$	3,173,125	$	347,529
As of December 31, 2022
U.S. Treasuries	$	49,259	$	724	$	100,093	$	13,896	$	149,352	$	14,620
U.S. Government agencies & GSEs	93,015		2,124		108,093		14,570		201,108		16,694
State and political subdivisions	207,749		9,906		62,606		16,220		270,355		26,126
Residential MBS, Agency & GSEs	1,049,648		102,852		392,288		57,784		1,441,936		160,636
Residential MBS, Non-agency	338,399		27,095		8,263		778		346,662		27,873
Commercial MBS, Agency & GSEs	288,787		17,304		332,088		62,103		620,875		79,407
Commercial MBS, Non-agency	30,566		1,058		—		—		30,566		1,058
Corporate bonds	83,010		7,776		127,603		15,987		210,613		23,763
Asset-backed securities	97,705		2,664		133,567		5,284		231,272		7,948
Total unrealized loss position	$	2,238,138	$	171,503	$	1,264,601	$	186,622	$	3,502,739	$	358,125

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
	June 30, 2023		December 31, 2022
HTM	$	6,098	$	7,234
AFS	11,859		15,281

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 June 30, 2023, 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	$	232,932	$	232,830	$	—	$	—
U.S. Government agencies & GSEs	338		331		—		—
State and political subdivisions	2,027		1,955		1,200		1,194
Corporate bonds	5,177		5,014		—		—
	240,474		240,130		1,200		1,194
1 to 5 years:
U.S. Treasuries	114,097		100,593		19,849		17,495
U.S. Government agencies & GSEs	39,403		35,781		—		—
State and political subdivisions	15,948		14,904		28,575		26,505
Corporate bonds	156,810		142,227		—		—
	326,258		293,505		48,424		44,000
5 to 10 years:
U.S. Government agencies & GSEs	71,084		63,053		73,352		61,460
State and political subdivisions	59,659		49,693		37,257		31,827
Corporate bonds	56,097		48,643		—		—
Supranational entities	—		—		15,000		12,352
	186,840		161,389		125,609		105,639
More than 10 years:
U.S. Government agencies & GSEs	142,156		137,931		26,427		21,207
State and political subdivisions	105,567		94,549		227,888		179,143
Corporate bonds	802		852		—		—
	248,525		233,332		254,315		200,350
Debt securities not due at a single maturity date:
Asset-backed securities	198,279		192,960		—		—
Residential MBS	1,806,004		1,620,235		1,438,048		1,215,805
Commercial MBS	700,722		618,438		686,239		565,408
	2,705,005		2,431,633		2,124,287		1,781,213
Total	$	3,707,102	$	3,359,989	$	2,553,835	$	2,132,396

Schedule of AFS Securities Sales Activity

The following table summarizes AFS securities sales activity for the three and six months ended June 30, 2023 and 2022 (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Proceeds from sales	$	—	$	73,112	$	380,661	$	281,521
Gross realized gains	$	—	$	46	$	1,373	$	1,009
Gross realized losses	—		—		(3,017)		(4,697)
Securities gains (losses), net	$	—	$	46	$	(1,644)	$	(3,688)
Income tax expense (benefit) attributable to sales	$	—	$	11	$	(374)	$	(979)

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Loans and Leases and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

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).

	June 30, 2023		December 31, 2022
Owner occupied commercial real estate	$	3,110,612	$	2,734,666
Income producing commercial real estate	3,669,746		3,261,626
Commercial & industrial	2,550,191		2,252,322
Commercial construction	1,739,208		1,597,848
Equipment financing	1,510,326		1,374,251
Total commercial	12,580,083		11,220,713
Residential mortgage	2,905,293		2,355,061
HELOC	926,409		850,269
Residential construction	463,278		442,553
Manufactured housing	339,969		316,741
Consumer	179,813		149,290
Total loans	17,394,845		15,334,627
Less allowance for credit losses - loans	(190,705)		(159,357)
Loans, net	$	17,204,140	$	15,175,270

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Guaranteed portion of SBA/USDA loans	$	22,072	$	39,119	$	43,842	$	67,462
Equipment financing receivables	20,571		20,541		39,274		43,977
Total	$	42,643	$	59,660	$	83,116	$	111,439

Schedule of Components of Net Investment in Leases

At June 30, 2023 and December 31, 2022, equipment financing receivables included leases of $59.8 million and $46.0 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

	June 30, 2023		December 31, 2022
Minimum future lease payments receivable	$	65,275	$	49,723
Estimated residual value of leased equipment	3,670		2,804
Initial direct costs	1,131		767
Security deposits	(442)		(429)
Unearned income	(9,788)		(6,877)
Net investment in leases	$	59,846	$	45,988

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 June 30, 2023 were as follows (in thousands): 

Year
Remainder of 2023	$	11,352
2024	19,503
2025	15,648
2026	10,910
2027	6,564
Thereafter	1,298
Total	$	65,275

Schedule of Loans by Aging Category, Accrual Status and Days Past Due Category

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 June 30, 2023
Owner occupied commercial real estate	$	3,105,295	$	1,842	$	4	$	—	$	3,471	$	3,110,612
Income producing commercial real estate	3,636,300		790		114		—		32,542		3,669,746
Commercial & industrial	2,517,176		1,532		660		—		30,823		2,550,191
Commercial construction	1,738,394		664		35		—		115		1,739,208
Equipment financing	1,494,296		4,087		2,954		—		8,989		1,510,326
Total commercial	12,491,461		8,915		3,767		—		75,940		12,580,083
Residential mortgage	2,889,244		3,408		1,222		—		11,419		2,905,293
HELOC	921,413		2,077		142		—		2,777		926,409
Residential construction	460,627		967		2		—		1,682		463,278
Manufactured housing	320,342		7,311		1,534		—		10,782		339,969
Consumer	178,646		1,063		85		—		19		179,813
Total loans	$	17,261,733	$	23,741	$	6,752	$	—	$	102,619	$	17,394,845
As of December 31, 2022
Owner occupied commercial real estate	$	2,731,574	$	1,522	$	1,047	$	—	$	523	$	2,734,666
Income producing commercial real estate	3,257,232		468		41		—		3,885		3,261,626
Commercial & industrial	2,234,284		3,288		274		6		14,470		2,252,322
Commercial construction	1,597,268		447		—		—		133		1,597,848
Equipment financing	1,362,622		4,285		1,906		—		5,438		1,374,251
Total commercial	11,182,980		10,010		3,268		6		24,449		11,220,713
Residential mortgage	2,342,196		1,939		7		—		10,919		2,355,061
HELOC	844,888		2,709		784		—		1,888		850,269
Residential construction	441,673		20		455		—		405		442,553
Manufactured housing	302,386		6,913		924		—		6,518		316,741
Consumer	148,943		237		48		9		53		149,290
Total loans	$	15,263,066	$	21,828	$	5,486	$	15	$	44,232	$	15,334,627

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
	June 30, 2023						December 31, 2022
	With no allowance		With an allowance		Total		With no allowance		With an allowance		Total
Owner occupied commercial real estate	$	2,507	$	964	$	3,471	$	276	$	247	$	523
Income producing commercial real estate	32,470		72		32,542		3,798		87		3,885
Commercial & industrial	28,665		2,158		30,823		13,917		553		14,470
Commercial construction	51		64		115		69		64		133
Equipment financing	56		8,933		8,989		85		5,353		5,438
Total commercial	63,749		12,191		75,940		18,145		6,304		24,449
Residential mortgage	1,959		9,460		11,419		2,159		8,760		10,919
HELOC	325		2,452		2,777		430		1,458		1,888
Residential construction	328		1,354		1,682		311		94		405
Manufactured housing	—		10,782		10,782		—		6,518		6,518
Consumer	3		16		19		3		50		53
Total	$	66,364	$	36,255	$	102,619	$	21,048	$	23,184	$	44,232

Schedule of Amortized Cost of Loans by Risk Category by Vintage Year

The following tables present the risk category of term loans and, for 2023, gross charge-offs by vintage year, which is the year of origination or most recent renewal, as of the date indicated (in thousands).

	Term Loans by Origination Year												Revolvers		Revolvers converted to term loans		Total
As of June 30, 2023	2023		2022		2021		2020		2019		Prior
Owner occupied commercial real estate:
Pass	$	359,037	$	683,426	$	650,179	$	613,901	$	214,542	$	372,915	$	114,607	$	18,740	$	3,027,347
Special Mention	1,626		5,675		6,968		6,764		8,612		5,260		3,855		268		39,028
Substandard	3,465		8,345		9,095		7,600		3,310		9,471		210		2,741		44,237
Total owner occupied commercial real estate	$	364,128	$	697,446	$	666,242	$	628,265	$	226,464	$	387,646	$	118,672	$	21,749	$	3,110,612
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	207	$	—	$	—	$	207
Income producing commercial real estate:
Pass	$	306,457	$	828,657	$	750,600	$	763,295	$	271,098	$	414,954	$	52,883	$	5,706	$	3,393,650
Special Mention	58,790		22,100		21,311		14,353		31,383		4,974		—		—		152,911
Substandard	22,314		33,196		998		17,216		17,664		31,738		—		59		123,185
Total income producing commercial real estate	$	387,561	$	883,953	$	772,909	$	794,864	$	320,145	$	451,666	$	52,883	$	5,765	$	3,669,746
Current period gross charge-offs	$	—	$	3,033	$	—	$	—	$	—	$	1,781	$	—	$	—	$	4,814
Commercial & industrial
Pass	$	391,898	$	545,473	$	366,189	$	159,719	$	121,611	$	184,837	$	600,042	$	15,490	$	2,385,259
Special Mention	209		478		4,385		476		88		855		18,596		181		25,268
Substandard	21,254		9,594		38,922		13,813		4,264		2,718		46,124		2,975		139,664
Total commercial & industrial	$	413,361	$	555,545	$	409,496	$	174,008	$	125,963	$	188,410	$	664,762	$	18,646	$	2,550,191
Current period gross charge-offs	$	1,330	$	1,132	$	—	$	444	$	198	$	41	$	—	$	1,506	$	4,651
Commercial construction
Pass	$	347,916	$	660,378	$	383,957	$	192,245	$	58,733	$	31,262	$	56,057	$	1,077	$	1,731,625
Special Mention	58		135		28		52		—		—		—		—		273
Substandard	194		4,541		35		2,199		1		100		—		240		7,310
Total commercial construction	$	348,168	$	665,054	$	384,020	$	194,496	$	58,734	$	31,362	$	56,057	$	1,317	$	1,739,208
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equipment financing:
Pass	$	422,344	$	589,302	$	299,127	$	117,201	$	61,859	$	9,413	$	—	$	—	$	1,499,246
Substandard	842		4,497		3,575		1,109		974		83		—		—		11,080
Total equipment financing	$	423,186	$	593,799	$	302,702	$	118,310	$	62,833	$	9,496	$	—	$	—	$	1,510,326
Current period gross charge-offs	$	—	$	3,129	$	3,086	$	895	$	389	$	280	$	—	$	—	$	7,779
Residential mortgage:
Pass	$	446,768	$	988,186	$	758,310	$	337,356	$	90,331	$	266,705	$	477	$	3,516	$	2,891,649
Substandard	214		1,505		1,680		912		1,648		7,499		—		186		13,644
Total residential mortgage	$	446,982	$	989,691	$	759,990	$	338,268	$	91,979	$	274,204	$	477	$	3,702	$	2,905,293
Current period gross charge-offs	$	—	$	23	$	—	$	—	$	—	$	22	$	—	$	—	$	45
Home equity lines of credit
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	26,231	$	923,328
Substandard	—		—		—		—		—		—		—		3,081		3,081
Total home equity lines of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	897,097	$	29,312	$	926,409
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	145	$	145
Residential construction
Pass	$	174,579	$	239,543	$	32,086	$	6,143	$	1,417	$	7,349	$	—	$	31	$	461,148
Substandard	224		1,324		430		—		18		134		—		—		2,130
Total residential construction	$	174,803	$	240,867	$	32,516	$	6,143	$	1,435	$	7,483	$	—	$	31	$	463,278
Current period gross charge-offs	$	—	$	637	$	—	$	—	$	—	$	—	$	—	$	—	$	637
Manufactured housing
Pass	$	35,151	$	74,072	$	52,438	$	46,466	$	33,278	$	86,573	$	—	$	—	$	327,978
Substandard	260		3,304		2,109		1,702		1,090		3,526		—		—		11,991
Total consumer	$	35,411	$	77,376	$	54,547	$	48,168	$	34,368	$	90,099	$	—	$	—	$	339,969
Current period gross charge-offs	$	3	$	434	$	201	$	268	$	105	$	263	$	—	$	—	$	1,274
Consumer
Pass	$	57,267	$	53,898	$	25,280	$	12,381	$	2,263	$	1,977	$	26,518	$	119	$	179,703
Substandard	—		1		60		28		—		21		—		—		110
Total consumer	$	57,267	$	53,899	$	25,340	$	12,409	$	2,263	$	1,998	$	26,518	$	119	$	179,813
Current period gross charge-offs	$	1,838	$	103	$	62	$	24	$	13	$	1	$	2	$	101	$	2,144

	Term Loans												Revolvers		Revolvers converted to term loans		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
Pass
Owner occupied commercial real estate	$	669,451	$	671,395	$	611,900	$	204,990	$	127,738	$	253,890	$	114,975	$	5,779	$	2,660,118
Income producing commercial real estate	812,804		753,936		733,946		248,259		171,108		255,485		50,026		9,953		3,035,517
Commercial & industrial	535,594		388,851		186,292		134,789		119,547		71,503		670,161		15,880		2,122,617
Commercial construction	732,147		391,963		256,087		78,778		11,977		19,973		70,819		1,433		1,563,177
Equipment financing	714,044		374,030		162,463		93,690		22,753		1,214		—		—		1,368,194
Total commercial	3,464,040		2,580,175		1,950,688		760,506		453,123		602,065		905,981		33,045		10,749,623
Residential mortgage	894,960		742,821		329,762		91,300		55,785		223,846		8		3,133		2,341,615
HELOC	—		—		—		—		—		—		824,153		23,948		848,101
Residential construction	344,443		82,289		4,478		1,742		1,545		7,549		—		31		442,077
Manufactured housing	78,097		54,976		48,908		34,836		31,060		61,148		—		—		309,025
Consumer	71,899		29,322		15,406		3,987		1,837		588		25,963		126		149,128
	4,853,439		3,489,583		2,349,242		892,371		543,350		895,196		1,756,105		60,283		14,839,569
Special Mention
Owner occupied commercial real estate	4,236		8,036		4,641		10,299		1,232		11,596		3,875		279		44,194
Income producing commercial real estate	41,423		1,137		44,802		32,821		21,647		50		805		—		142,685
Commercial & industrial	1,695		21,745		2,686		1,047		1,244		167		10,449		309		39,342
Commercial construction	850		33		1,640		13,237		4,891		28		—		—		20,679
Equipment financing	—		—		—		—		—		—		—		—		—
Total commercial	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Residential mortgage	—		—		—		—		—		—		—		—		—
HELOC	—		—		—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—		—		—
Manufactured housing	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
	48,204		30,951		53,769		57,404		29,014		11,841		15,129		588		246,900
Substandard
Owner occupied commercial real estate	9,835		77		2,873		4,490		1,204		8,055		209		3,611		30,354
Income producing commercial real estate	52,384		1,357		1,867		4,180		13,209		10,365		—		62		83,424
Commercial & industrial	10,431		19,477		3,880		4,557		11,019		1,189		39,333		477		90,363
Commercial construction	133		—		45		2		3,876		9,693		—		243		13,992
Equipment financing	1,625		2,160		1,303		705		236		28		—		—		6,057
Total commercial	74,408		23,071		9,968		13,934		29,544		29,330		39,542		4,393		224,190
Residential mortgage	1,195		964		1,364		1,836		2,589		5,296		—		202		13,446
HELOC	—		—		—		—		—		—		93		2,075		2,168
Residential construction	32		268		—		20		3		153		—		—		476
Manufactured housing	1,130		1,267		1,427		990		1,188		1,714		—		—		7,716
Consumer	20		77		34		1		25		4		1		—		162
	76,785		25,647		12,793		16,781		33,349		36,497		39,636		6,670		248,158
Total	$	4,978,428	$	3,546,181	$	2,415,804	$	966,556	$	605,713	$	943,534	$	1,810,870	$	67,541	$	15,334,627

Schedule of Modifications to Borrowers Experiencing Financial Difficulty

The period end amortized cost of loans modified under the terms of a FDM during the six months ended June 30, 2023 are presented in the following table (in thousands).

	New FDMs
	Post-Modification Amortized Cost by Type of Modification
	Extension		Payment Delay		Rate Reduction & Extension		Total		% of Total Class of Receivable
Six Months Ended June 30, 2023
Income producing commercial real estate	$	38,138	$	—	$	21,202	$	59,340	1.6	%
Commercial & industrial	2,718		29,517		—		32,235		1.3
Equipment financing	8,069		—		—		8,069		0.5
Residential mortgage	57		—		630		687		—
Manufactured housing	—		—		259		259		0.1
Total loans	$	48,982	$	29,517	$	22,091	$	100,590	0.6

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 June 30,
	2023										2022
	Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Charge-Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	20,831	$	—	$	205	$	752	$	21,788	$	15,945	$	—	$	1,496	$	(667)	$	16,774
Income producing commercial real estate	33,607		(2,033)		849		6,352		38,775		33,539		—		116		(371)		33,284
Commercial & industrial	28,312		(3,753)		1,007		4,290		29,856		18,386		(1,011)		1,313		(421)		18,267
Commercial construction	22,073		—		105		98		22,276		13,782		—		144		2,136		16,062
Equipment financing	26,195		(3,752)		1,215		4,946		28,604		19,264		(1,709)		802		52		18,409
Residential mortgage	24,082		(26)		69		1,306		25,431		14,964		—		51		2,020		17,035
HELOC	10,337		(24)		83		213		10,609		7,128		—		346		13		7,487
Residential construction	2,043		(637)		14		2,026		3,446		1,929		—		76		81		2,086
Manufactured housing	8,424		(620)		—		1,400		9,204		7,083		(135)		—		(334)		6,614
Consumer	630		(1,327)		226		1,187		716		785		(728)		308		542		907
ACL - loans	176,534		(12,172)		3,773		22,570		190,705		132,805		(3,583)		4,652		3,051		136,925
ACL - unfunded commitments	21,389		—		—		183		21,572		13,564		—		—		2,553		16,117
Total ACL	$	197,923	$	(12,172)	$	3,773	$	22,753	$	212,277	$	146,369	$	(3,583)	$	4,652	$	5,604	$	153,042

	Six Months Ended June 30,
	2023												2022
	Beginning Balance		Initial ACL - PCD loans (1)		Charge-Offs		Recoveries		(Release) Provision		Ending Balance		Beginning Balance		Initial ACL - PCD loans (1)		Charge- Offs		Recoveries		(Release) Provision		Ending Balance
Owner occupied commercial real estate	$	19,834	$	181	$	(207)	$	322	$	1,658	$	21,788	$	14,282	$	266	$	—	$	1,541	$	685	$	16,774
Income producing commercial real estate	32,082		307		(4,814)		1,324		9,876		38,775		24,156		4,366		—		406		4,356		33,284
Commercial & industrial	23,504		1,358		(4,651)		1,680		7,965		29,856		16,592		2,337		(4,605)		1,978		1,965		18,267
Commercial construction	20,120		39		—		142		1,975		22,276		9,956		2,857		(41)		558		2,732		16,062
Equipment financing	23,395		—		(7,779)		1,867		11,121		28,604		16,290		—		(2,657)		1,483		3,293		18,409
Residential mortgage	20,809		157		(45)		175		4,335		25,431		12,390		385		(53)		201		4,112		17,035
HELOC	8,707		534		(145)		171		1,342		10,609		6,568		60		(9)		436		432		7,487
Residential construction	2,049		124		(637)		29		1,881		3,446		1,847		1		—		99		139		2,086
Manufactured housing	8,098		—		(1,274)		26		2,354		9,204		—		2,438		(308)		9		4,475		6,614
Consumer	759		4		(2,144)		477		1,620		716		451		27		(1,534)		587		1,376		907
ACL - loans	159,357		2,704		(21,696)		6,213		44,127		190,705		102,532		12,737		(9,207)		7,298		23,565		136,925
ACL - unfunded commitments	21,163		—		—		—		409		21,572		10,992		—		—		—		5,125		16,117
Total ACL	$	180,520	$	2,704	$	(21,696)	$	6,213	$	44,536	$	212,277	$	113,524	$	12,737	$	(9,207)	$	7,298	$	28,690	$	153,042

(1) Represents the initial ACL related to PCD loans acquired in the Progress and Reliant transactions during the six months ended June 30, 2023 and 2022, respectively.

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2023

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):

	June 30, 2023						December 31, 2022
	Notional Amount (1)		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	$	16,261	$	—	$	100,000	$	16,191	$	—
Cash flow hedge of trust preferred securities	40,000		—		—		20,000		—		—
Fair value hedge of AFS debt securities	677,473		—		—		—		—		—
Total	817,473		16,261		—		120,000		16,191		—
Derivatives not designated as hedging instruments:
Customer derivative positions	2,034,468		874		91,307		1,097,578		341		86,358
Dealer offsets to customer derivative positions	1,803,106		29,360		901		1,097,578		22,393		274
Risk participations	130,392		—		22		88,586		15		1
Mortgage banking - loan commitment	48,090		991		2		19,685		394		—
Mortgage banking - forward sales commitment	100,140		383		14		49,750		198		71
Bifurcated embedded derivatives	51,935		10,881		—		51,935		11,104		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		12,540		51,935		—		12,839
Total	4,220,066		42,489		104,786		2,457,047		34,445		99,543
Total derivatives	$	5,037,539	$	58,750	$	104,786	$	2,577,047	$	50,636	$	99,543
Total gross derivative instruments			$	58,750	$	104,786			$	50,636	$	99,543
Less: Amounts subject to master netting agreements			(916)		(916)				(346)		(346)
Less: Cash collateral received/pledged			(46,248)		(12,801)				(38,386)		(13,089)
Net amount			$	11,586	$	91,069			$	11,904	$	86,108

(1) At June 30, 2023, LIBOR-based customer derivative positions and derivatives cleared centrally through the CME included both a short-dated contract and a long-dated contract to facilitate the transition from LIBOR to SOFR. The short-dated contracts mature at the first reset date after June 30, 2023.

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 net interest income for the periods indicated (in thousands). 

	Affected Income Statement Line Item	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Fair value hedges:
Brokered time deposits:
Net income recognized	Interest expense- deposits	$	—	$	—	$	—	$	28
AFS securities:
Recognized on derivative interest settlements		$	2,310	$	—	$	2,310	$	—
Recognized on derivatives		13,889		—		13,889		—
Recognized on hedged items		(15,289)		—		(15,289)		—
Net income recognized	Interest revenue- investment securities	$	910	$	—	$	910	$	—
Cash flow hedges:
Long-term debt (1)	Interest expense- long term debt	$	1,234	$	(106)	$	2,056	$	(247)

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $112,000 and $118,000 for the three months ended June 30, 2023 and 2022, respectively, and $229,000 and $234,000 for the six months ended June 30, 2023 and 2022, respectively.

Schedule of Fair Value Hedging Instruments, Carrying Value and Basis Adjustments

The table below presents the carrying amount of hedged AFS debt securities and cumulative fair value hedging adjustments included in the carrying amount of the hedged asset for the periods presented (in thousands). All fair value hedges of AFS debt securities at June 30, 2023 were designated under the the portfolio layer method.

	June 30, 2023
Balance Sheet Location	Amortized Cost(1)		Hedge Accounting Basis Adjustment
Debt securities AFS	$	804,658	$	(15,289)

(1) Excludes cumulative hedge accounting basis adjustment.

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 June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Customer derivatives and dealer offsets	Other noninterest income	$	545	$	445	$	912	$	1,214
Bifurcated embedded derivatives and dealer offsets	Other noninterest income	(474)		85		(1,007)		198
Mortgage banking derivatives	Mortgage loan revenue	174		2,616		1,401		7,250
Risk participations	Other noninterest income	154		93		142		94
		$	399	$	3,239	$	1,448	$	8,756

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

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).  

	June 30, 2023		December 31, 2022
Core deposit intangible	$	86,880	$	46,900
Less: accumulated amortization	(32,665)		(26,112)
Net core deposit intangible	54,215		20,788
Customer relationship intangible	8,400		8,400
Less: accumulated amortization	(1,510)		(1,114)
Net customer relationship intangible	6,890		7,286
Total intangibles subject to amortization, net (1)	61,105		28,074
Goodwill	896,718		751,174
Total goodwill and other intangible assets, net	$	957,823	$	779,248

(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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance, beginning of period (1)	$	896,718	$	751,174	$	751,174	$	452,007
Acquisitions	—		—		145,544		299,167
Balance, end of period (1)	$	896,718	$	751,174	$	896,718	$	751,174

(1) Goodwill balances are shown net of accumulated impairment losses of $306 million incurred prior to 2022.

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 2023	$	6,521
2024	11,791
2025	10,031
2026	8,491
2027	6,950
Thereafter	17,321
Total	$	61,105

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Assets and Liabilities Measured at Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

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).

June 30, 2023	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	333,423	$	—	$	—	$	333,423
U.S. Government agencies & GSEs	—		237,096		—		237,096
State and political subdivisions	—		161,101		—		161,101
Residential MBS	—		1,620,235		—		1,620,235
Commercial MBS	—		618,438		—		618,438
Corporate bonds	—		194,553		2,183		196,736
Asset-backed securities	—		192,960		—		192,960
Equity securities with readily determinable fair values	10,651		1,532		—		12,183
Mortgage loans held for sale	—		27,104		—		27,104
Deferred compensation plan assets	11,728		—		—		11,728
Servicing rights for SBA/USDA loans	—		—		6,148		6,148
Residential mortgage servicing rights	—		—		37,194		37,194
Derivative financial instruments	—		46,878		11,872		58,750
Total assets	$	355,802	$	3,099,897	$	57,397	$	3,513,096
Liabilities:
Deferred compensation plan liability	$	11,766	$	—	$	—	$	11,766
Derivative financial instruments	—		92,222		12,564		104,786
Total liabilities	$	11,766	$	92,222	$	12,564	$	116,552

December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	149,352	$	—	$	—	$	149,352
U.S. Government agencies & GSEs	—		250,116		—		250,116
State and political subdivisions	—		303,748		—		303,748
Residential MBS	—		1,795,481		—		1,795,481
Commercial MBS	—		671,912		—		671,912
Corporate bonds	—		210,240		2,212		212,452
Asset-backed securities	—		231,272		—		231,272
Equity securities with readily determinable fair values	12,278		1,359		—		13,637
Mortgage loans held for sale	—		11,794		—		11,794
Deferred compensation plan assets	11,436		—		—		11,436
Servicing rights for SBA/USDA loans	—		—		5,188		5,188
Residential mortgage servicing rights	—		—		36,559		36,559
Derivative financial instruments	—		39,123		11,513		50,636
Total assets	$	173,066	$	3,515,045	$	55,472	$	3,743,583
Liabilities:
Deferred compensation plan liability	$	11,460	$	—	$	—	$	11,460
Derivative financial instruments	—		86,703		12,840		99,543
Total liabilities	$	11,460	$	86,703	$	12,840	$	111,003

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).

	2023										2022
	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 June 30,
Beginning balance	$	11,348	$	11,195	$	6,289	$	36,081	$	2,227	$	7,902	$	8,531	$	6,962	$	32,641	$	2,332
Additions	—		167		464		848		—		—		99		800		1,723		—
Sales and settlements	—		—		(231)		(496)		—		—		(1)		(408)		(638)		—
Fair value adjustments included in OCI	—		—		—		—		(44)		—		—		—		—		(45)
Fair value adjustments included in earnings	524		1,202		(374)		761		—		2,297		2,166		(1,187)		1,405		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287
Six Months Ended June 30,
Beginning balance	$	11,513	$	12,840	$	5,188	$	36,559	$	2,212	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395
Business combinations	—		—		95		—		—		—		—		—		—		—
Additions	—		170		924		1,480		—		—		99		1,388		3,890		—
Transfers from Level 3	—		—		—		—		—		(290)		—		—		—		—
Sales and settlements	(11)		—		(451)		(948)		—		—		(1)		(637)		(1,314)		—
Fair value adjustments included in OCI	—		—		—		—		(29)		—		—		—		—		(108)
Fair value adjustments included in earnings	370		(446)		392		103		—		3,731		5,649		(1,097)		7,394		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287

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).

	2023										2022
	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 June 30,
Beginning balance	$	11,348	$	11,195	$	6,289	$	36,081	$	2,227	$	7,902	$	8,531	$	6,962	$	32,641	$	2,332
Additions	—		167		464		848		—		—		99		800		1,723		—
Sales and settlements	—		—		(231)		(496)		—		—		(1)		(408)		(638)		—
Fair value adjustments included in OCI	—		—		—		—		(44)		—		—		—		—		(45)
Fair value adjustments included in earnings	524		1,202		(374)		761		—		2,297		2,166		(1,187)		1,405		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287
Six Months Ended June 30,
Beginning balance	$	11,513	$	12,840	$	5,188	$	36,559	$	2,212	$	6,758	$	5,048	$	6,513	$	25,161	$	2,395
Business combinations	—		—		95		—		—		—		—		—		—		—
Additions	—		170		924		1,480		—		—		99		1,388		3,890		—
Transfers from Level 3	—		—		—		—		—		(290)		—		—		—		—
Sales and settlements	(11)		—		(451)		(948)		—		—		(1)		(637)		(1,314)		—
Fair value adjustments included in OCI	—		—		—		—		(29)		—		—		—		—		(108)
Fair value adjustments included in earnings	370		(446)		392		103		—		3,731		5,649		(1,097)		7,394		—
Ending balance	$	11,872	$	12,564	$	6,148	$	37,194	$	2,183	$	10,199	$	10,795	$	6,167	$	35,131	$	2,287

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	June 30, 2023			December 31, 2022
			Range	Weighted Average		Range	Weighted Average
SBA/USDA loan servicing rights	Discounted cash flow	Discount rate	8.0% - 25.0%	13.2	%	11.9% - 25.0%	17.5	%
		Prepayment rate	0.4 - 35.4	16.9		0.0 - 35.4	16.4
Residential mortgage servicing rights	Discounted cash flow	Discount rate	9.5 - 11.5	9.5		9.5 - 11.5	9.5
		Prepayment rate	7.0 - 29.5	7.7		7.0 - 31.2	7.5
Corporate bonds	Discounted cash flow	Discount rate	6.6 - 7.2	6.9		6.1 - 6.4	6.3
Derivative assets - mortgage	Internal model	Pull through rate	60.0 - 100	89.4		26.5 - 100	90.7
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
	June 30, 2023		December 31, 2022
Outstanding principal balance	$	26,520	$	11,473
Fair value	27,104		11,794

Gain (Loss) from Change in Fair Value on Mortgage Loans Held for Sale
Location	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Mortgage loan gains and other related fees	$	33	$	163	$	264	$	(1,011)

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 June 30, 2023 and December 31, 2022, 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
June 30, 2023
Loans held for investment	$	—	$	—	$	31,148	$	31,148
December 31, 2022
Loans held for investment	$	—	$	—	$	7,808	$	7,808
Mortgage loans held for sale	—		—		1,806		1,806

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
June 30, 2023
Assets:
HTM debt securities	$	2,553,835	$	17,495	$	2,114,901	$	—	$	2,132,396
Loans and leases, net	17,204,140		—		—		16,591,141		16,591,141
Liabilities:
Deposits	22,251,988		—		22,245,777		—		22,245,777
Long-term debt	324,754		—		—		304,481		304,481
December 31, 2022
Assets:
HTM debt securities	$	2,613,648	$	17,417	$	2,173,656	$	—	$	2,191,073
Loans and leases, net	15,175,270		—		—		14,609,239		14,609,239
Liabilities:
Deposits	19,876,507		—		19,863,380		—		19,863,380
FHLB advances	550,000		—		—		549,913		549,913
Long-term debt	324,663		—		—		313,380		313,380

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023.

	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, 2022	778,686	$	28.28			40,338	$	11.88
Granted	292,631	30.33				643,298	20.91
Released / Exercised	(121,277)	27.18		$	3,855	(164,864)	17.96			$	1,584
Cancelled	(27,980)	28.51				(4,620)	25.97
Outstanding at June 30, 2023	922,060	29.07		23,042		514,152	21.10		5.6	2,082
Vested / Exercisable at June 30, 2023	—	—				514,152	21.10		5.6	2,082

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Reclassifications Out of AOCI (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,				Affected Line Item in the Statement Where Net Income is Presented
	2023		2022		2023		2022
Realized losses on AFS securities:
	$	—	$	46	$	(1,644)	$	(3,688)	Securities gains (losses), net
	—		(11)		374		979		Income tax (expense) benefit
	$	—	$	35	$	(1,270)	$	(2,709)	Net of tax
Amortization of unrealized losses on HTM securities transferred from AFS:
	$	(2,518)	$	(1,769)	$	(5,486)	$	(1,769)	Investment securities interest revenue
	604		422		1,324		422		Income tax benefit
	$	(1,914)	$	(1,347)	$	(4,162)	$	(1,347)	Net of tax
Reclassifications related to derivative instruments accounted for as cash flow hedges:
Interest rate contracts	$	1,234	$	(106)	$	2,056	$	(247)	Long-term debt interest expense
	(315)		27		(525)		63		Income tax (expense) benefit
	$	919	$	(79)	$	1,531	$	(184)	Net of tax
Amortization of defined benefit pension plan net periodic pension cost components:
Prior service cost	$	(61)	$	(93)	$	(122)	$	(185)	Salaries and employee benefits expense
Actuarial losses	—		(78)		—		(156)		Other expense
	(61)		(171)		(122)		(341)		Total before tax
	15		44		31		87		Income tax benefit
	$	(46)	$	(127)	$	(91)	$	(254)	Net of tax
Total reclassifications for the period	$	(1,041)	$	(1,518)	$	(3,992)	$	(4,494)	Net of tax

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	63,288	$	66,842	$	125,588	$	114,861
Dividends on preferred stock	(1,719)		(1,719)		(3,438)		(3,438)
Earnings allocated to participating securities	(342)		(362)		(680)		(596)
Net income available to common shareholders	$	61,227	$	64,761	$	121,470	$	110,827
Weighted average shares outstanding:
Basic	115,774		106,610		115,614		106,580
Effect of dilutive securities:
Stock options	95		36		166		41
Restricted stock units	—		70		15		76
Diluted	115,869		106,716		115,795		106,697
Net income per common share:
Basic	$	0.53	$	0.61	$	1.05	$	1.04
Diluted	$	0.53	$	0.61	$	1.05	$	1.04

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Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2023

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Schedule of Minimum Amounts Required for Capital Adequacy Purposes

Regulatory capital ratios at June 30, 2023 and December 31, 2022, 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		June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Risk-based ratios:
CET1 capital	4.5	%	6.5	%	12.19		%	12.26		%	12.42		%	12.83		%
Tier 1 capital	6.0		8.0		12.69			12.81			12.42			12.83
Total capital	8.0		10.0		14.57			14.79			13.39			13.70
Leverage ratio	4.0		5.0		9.79			9.69			9.56			9.69
CET1 capital					$	2,366,637		$	2,164,211		$	2,400,649		$	2,255,337
Tier 1 capital					2,462,802			2,260,633			2,400,649			2,255,337
Total capital					2,827,580			2,610,216			2,589,591			2,408,895
Risk-weighted assets					19,409,980			17,648,573			19,335,994			17,583,347
Average total assets for the leverage ratio					25,160,884			23,322,018			25,120,784			23,285,253

(1) As of June 30, 2023 and December 31, 2022 the additional capital conservation buffer in effect was 2.50%

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

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).

	June 30, 2023		December 31, 2022
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	4,755,317	$	4,683,790
Letters of credit	55,652		46,896

Schedule of Tax Credit and Certain Equity Method Investments

The following table summarizes, as of the dates indicated, tax credit and certain equity method investments (in thousands):

	Balance Sheet Location	June 30, 2023		December 31, 2022
Investments in LIHTC:
Carrying amount	Other assets	$	52,112	$	50,054
Amount of future funding commitments included in carrying amount	Other liabilities	15,292		18,090
Renewable energy investments:
Carrying amount	Other assets	39,737		19,617
Amount of future funding commitments included in carrying amount	Other liabilities	20,360		18,781
Fintech funds and certain other equity method investments:
Carrying amount	Other assets	32,722		27,569
Amount of future funding commitments included in carrying amount	Other liabilities	470		470
Amount of future funding commitments not included in carrying amount	N/A	26,568		23,690

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Significant non-cash investing and financing transactions:
Commitments to fund equity investments	$ 11,093	$ 0
Transfers of AFS securities to HTM securities	0	1,288,982
Acquisitions:
Assets acquired	1,903,930	3,254,173
Liabilities assumed	1,597,022	2,657,173
Net assets acquired	306,908	597,000
Common stock issued and options converted	$ 306,461	$ 596,376

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Acquisitions - Narrative (Details)		3 Months Ended		6 Months Ended
	Jan. 03, 2023 USD ($) bank_branch	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Business Acquisition [Line Items]
Merger-related and other charges		$ 3,645,000	$ 7,143,000	$ 12,276,000	$ 16,159,000
Progress
Business Acquisition [Line Items]
Number of banking branches | bank_branch	13
Goodwill expected to be tax deductible	$ 0
Progress | Core deposit intangible
Business Acquisition [Line Items]
Expected useful life of acquired intangible (in years)	10 years
Progress | Merger-related costs
Business Acquisition [Line Items]
Merger-related and other charges		$ 2,290,000		$ 9,780,000
Reliant | Merger-related costs
Business Acquisition [Line Items]
Merger-related and other charges			$ 5,460,000		$ 14,000,000

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Acquisitions - Purchased Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands	Jan. 03, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Liabilities
Goodwill		$ 896,718	$ 896,718	$ 751,174	$ 751,174	$ 751,174	$ 452,007
Progress
Assets
Cash and cash equivalents	$ 57,548
Debt securities	111,006
Loans held for sale	2,087
Loans held for investment	1,442,959
Premises and equipment	21,118
Bank-owned life insurance	40,723
Core deposit intangible	39,980
Other assets	42,965
Total assets acquired	1,758,386
Liabilities
Deposits	1,334,476
Short-term borrowings	141,017
Federal Home Loan Bank advances	95,000
Other liabilities	26,529
Total liabilities assumed	1,597,022
Total identifiable net assets	161,364
Cash	447
Common stock issued in acquisition	296,444
Options converted	10,017
Total fair value of consideration transferred	306,908
Goodwill	$ 145,544
Common stock issued (in shares)	8,770,531

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Acquisitions - Acquired Loan Portfolio at Acquisition (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 03, 2023	Jun. 30, 2023	Jun. 30, 2022
PCD loans:
ACL at acquisition		$ (2,704)	$ (12,737)
Progress
Non-PCD loans:
Fair value	$ 1,380,900
Gross contractual amounts receivable	1,626,243
Estimate of contractual cash flows not expected to be collected	9,287
Progress | Purchased loans
PCD loans:
Par value	64,913
ACL at acquisition	(2,704)
Non-credit discount	(150)
Purchase price	$ 62,059

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Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Supplemental consolidated pro forma revenue	$ 213,509	$ 225,984	$ 443,050	$ 430,853
Supplemental consolidated pro forma net income (loss)	64,832	73,656	140,041	131,038
Progress
Business Acquisition [Line Items]
Actual revenue included since acquisition date	17,969		24,621
Actual net income (loss) included since acquisition date	$ 3,288		$ 5,098
Reliant
Business Acquisition [Line Items]
Actual revenue included since acquisition date		29,172		43,086
Actual net income (loss) included since acquisition date		$ 15,550		$ 16,148

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Investment Securities - Amortized Cost Basis, Unrealized Gains and Losses and Fair value of HTM Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
HTM debt securities:
Amortized Cost	$ 2,553,835	$ 2,613,648
Gross Unrealized Gains	36	91
Gross Unrealized Losses	421,475	422,666
Fair Value	2,132,396	2,191,073
U.S. Treasuries
HTM debt securities:
Amortized Cost	19,849	19,834
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2,354	2,417
Fair Value	17,495	17,417
U.S. Government agencies & GSEs
HTM debt securities:
Amortized Cost	99,779	99,679
Gross Unrealized Gains	0	0
Gross Unrealized Losses	17,112	18,169
Fair Value	82,667	81,510
State and political subdivisions
HTM debt securities:
Amortized Cost	294,920	295,945
Gross Unrealized Gains	23	56
Gross Unrealized Losses	56,274	64,340
Fair Value	238,669	231,661
Residential MBS, Agency & GSEs
HTM debt securities:
Amortized Cost	1,438,048	1,488,028
Gross Unrealized Gains	13	35
Gross Unrealized Losses	222,256	223,566
Fair Value	1,215,805	1,264,497
Commercial MBS, Agency & GSEs
HTM debt securities:
Amortized Cost	686,239	695,162
Gross Unrealized Gains	0	0
Gross Unrealized Losses	120,831	111,586
Fair Value	565,408	583,576
Supranational entities
HTM debt securities:
Amortized Cost	15,000	15,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2,648	2,588
Fair Value	$ 12,352	$ 12,412

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Investment Securities - Narrative (Details)	Jun. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Debt Securities, Available For Sale And Held To Maturity [Line Items]
Number of AFS debt securities in unrealized loss position | security	678
Number of HTM debt securities in unrealized loss position | security	325
Allowance for credit losses, HTM portfolio	$ 0	$ 0
Allowance for credit losses, AFS portfolio	0	0
Pledged securities | Interest expense- deposits
Debt Securities, Available For Sale And Held To Maturity [Line Items]
Securities	$ 4,430,000,000	$ 2,530,000,000

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Investment Securities - Amortized Cost Basis, Unrealized Gains and Losses and Fair Value of AFS Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
AFS debt securities:
Amortized Cost	$ 3,707,102	$ 3,971,326
Gross Unrealized Gains	416	1,132
Gross Unrealized Losses	347,529	358,125
Fair Value	3,359,989	3,614,333
U.S. Treasuries
AFS debt securities:
Amortized Cost	347,029	163,972
Gross Unrealized Gains	34	0
Gross Unrealized Losses	13,640	14,620
Fair Value	333,423	149,352
U.S. Government agencies & GSEs
AFS debt securities:
Amortized Cost	252,981	266,347
Gross Unrealized Gains	295	463
Gross Unrealized Losses	16,180	16,694
Fair Value	237,096	250,116
State and political subdivisions
AFS debt securities:
Amortized Cost	183,201	329,723
Gross Unrealized Gains	0	151
Gross Unrealized Losses	22,100	26,126
Fair Value	161,101	303,748
Residential MBS, Agency & GSEs
AFS debt securities:
Amortized Cost	1,445,528	1,609,442
Gross Unrealized Gains	0	13
Gross Unrealized Losses	158,964	160,636
Fair Value	1,286,564	1,448,819
Residential MBS, Non-agency
AFS debt securities:
Amortized Cost	360,476	374,535
Gross Unrealized Gains	0	0
Gross Unrealized Losses	26,805	27,873
Fair Value	333,671	346,662
Commercial MBS, Agency & GSEs
AFS debt securities:
Amortized Cost	669,625	720,282
Gross Unrealized Gains	0	471
Gross Unrealized Losses	81,276	79,407
Fair Value	588,349	641,346
Commercial MBS, Non-agency
AFS debt securities:
Amortized Cost	31,097	31,624
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1,008	1,058
Fair Value	30,089	30,566
Corporate bonds
AFS debt securities:
Amortized Cost	218,886	236,181
Gross Unrealized Gains	60	34
Gross Unrealized Losses	22,210	23,763
Fair Value	196,736	212,452
Asset-backed securities
AFS debt securities:
Amortized Cost	198,279	239,220
Gross Unrealized Gains	27	0
Gross Unrealized Losses	5,346	7,948
Fair Value	$ 192,960	$ 231,272

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Investment Securities - HTM Debt Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 84,660	$ 618,280
Unrealized Loss, Less than 12 Months	3,772	90,243
Fair Value, 12 Months or More	2,042,183	1,560,451
Unrealized Loss, 12 Months or More	417,703	332,423
Fair Value, Total	2,126,843	2,178,731
Unrealized Loss, Total	421,475	422,666
U.S. Treasuries
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	0	17,417
Unrealized Loss, Less than 12 Months	0	2,417
Fair Value, 12 Months or More	17,495	0
Unrealized Loss, 12 Months or More	2,354	0
Fair Value, Total	17,495	17,417
Unrealized Loss, Total	2,354	2,417
U.S. Government agencies & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	0	10,687
Unrealized Loss, Less than 12 Months	0	1,813
Fair Value, 12 Months or More	82,667	70,823
Unrealized Loss, 12 Months or More	17,112	16,356
Fair Value, Total	82,667	81,510
Unrealized Loss, Total	17,112	18,169
State and political subdivisions
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	22,629	104,243
Unrealized Loss, Less than 12 Months	220	20,639
Fair Value, 12 Months or More	211,786	117,115
Unrealized Loss, 12 Months or More	56,054	43,701
Fair Value, Total	234,415	221,358
Unrealized Loss, Total	56,274	64,340
Residential MBS, Agency & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	55,552	296,673
Unrealized Loss, Less than 12 Months	3,332	38,289
Fair Value, 12 Months or More	1,158,955	965,785
Unrealized Loss, 12 Months or More	218,924	185,277
Fair Value, Total	1,214,507	1,262,458
Unrealized Loss, Total	222,256	223,566
Commercial MBS, Agency & GSEs
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	6,479	176,848
Unrealized Loss, Less than 12 Months	220	24,497
Fair Value, 12 Months or More	558,928	406,728
Unrealized Loss, 12 Months or More	120,611	87,089
Fair Value, Total	565,407	583,576
Unrealized Loss, Total	120,831	111,586
Supranational entities
Summary of HTM debt securities in an unrealized loss position
Fair Value, Less than 12 Months	0	12,412
Unrealized Loss, Less than 12 Months	0	2,588
Fair Value, 12 Months or More	12,352	0
Unrealized Loss, 12 Months or More	2,648	0
Fair Value, Total	12,352	12,412
Unrealized Loss, Total	$ 2,648	$ 2,588

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Investment Securities - AFS Debt Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	$ 467,603	$ 2,238,138
Unrealized Loss, Less than 12 Months	19,845	171,503
Fair Value, 12 Months or More	2,705,522	1,264,601
Unrealized Loss, 12 Months or More	327,684	186,622
Fair Value, Total	3,173,125	3,502,739
Unrealized Loss, Total	347,529	358,125
U.S. Treasuries
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	49,170	49,259
Unrealized Loss, Less than 12 Months	16	724
Fair Value, 12 Months or More	150,685	100,093
Unrealized Loss, 12 Months or More	13,624	13,896
Fair Value, Total	199,855	149,352
Unrealized Loss, Total	13,640	14,620
U.S. Government agencies & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	64,447	93,015
Unrealized Loss, Less than 12 Months	509	2,124
Fair Value, 12 Months or More	127,787	108,093
Unrealized Loss, 12 Months or More	15,671	14,570
Fair Value, Total	192,234	201,108
Unrealized Loss, Total	16,180	16,694
State and political subdivisions
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	552	207,749
Unrealized Loss, Less than 12 Months	33	9,906
Fair Value, 12 Months or More	160,549	62,606
Unrealized Loss, 12 Months or More	22,067	16,220
Fair Value, Total	161,101	270,355
Unrealized Loss, Total	22,100	26,126
Residential MBS, Agency & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	219,050	1,049,648
Unrealized Loss, Less than 12 Months	11,928	102,852
Fair Value, 12 Months or More	1,067,514	392,288
Unrealized Loss, 12 Months or More	147,036	57,784
Fair Value, Total	1,286,564	1,441,936
Unrealized Loss, Total	158,964	160,636
Residential MBS, Non-agency
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	8,618	338,399
Unrealized Loss, Less than 12 Months	320	27,095
Fair Value, 12 Months or More	325,053	8,263
Unrealized Loss, 12 Months or More	26,485	778
Fair Value, Total	333,671	346,662
Unrealized Loss, Total	26,805	27,873
Commercial MBS, Agency & GSEs
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	102,718	288,787
Unrealized Loss, Less than 12 Months	6,058	17,304
Fair Value, 12 Months or More	485,631	332,088
Unrealized Loss, 12 Months or More	75,218	62,103
Fair Value, Total	588,349	620,875
Unrealized Loss, Total	81,276	79,407
Commercial MBS, Non-agency
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	0	30,566
Unrealized Loss, Less than 12 Months	0	1,058
Fair Value, 12 Months or More	30,089	0
Unrealized Loss, 12 Months or More	1,008	0
Fair Value, Total	30,089	30,566
Unrealized Loss, Total	1,008	1,058
Corporate bonds
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	8,746	83,010
Unrealized Loss, Less than 12 Months	879	7,776
Fair Value, 12 Months or More	186,121	127,603
Unrealized Loss, 12 Months or More	21,331	15,987
Fair Value, Total	194,867	210,613
Unrealized Loss, Total	22,210	23,763
Asset-backed securities
Summary of AFS debt securities in an unrealized loss position
Fair Value, Less than 12 Months	14,302	97,705
Unrealized Loss, Less than 12 Months	102	2,664
Fair Value, 12 Months or More	172,093	133,567
Unrealized Loss, 12 Months or More	5,244	5,284
Fair Value, Total	186,395	231,272
Unrealized Loss, Total	$ 5,346	$ 7,948

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Investment Securities - Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
HTM
Accrued interest receivable
Accrued interest receivable	$ 6,098	$ 7,234
AFS
Accrued interest receivable
Accrued interest receivable	$ 11,859	$ 15,281

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Investment Securities - Amortized Cost and Fair value of AFS and HTM Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	$ 240,474
AFS, Amortized Cost, 1 to 5 years	326,258
AFS, Amortized Cost, 5 to 10 years	186,840
AFS, Amortized Cost, More than 10 years	248,525
AFS, Amortized Cost, Not due at single maturity	2,705,005
Amortized Cost	3,707,102	$ 3,971,326
AFS, Fair Value
AFS, Fair Value, Within 1 year	240,130
AFS, Fair Value, 1 to 5 years	293,505
AFS, Fair Value, 5 to 10 years	161,389
AFS, Fair Value, More than 10 years	233,332
AFS, Fair Value, Not due at single maturity	2,431,633
Fair Value	3,359,989	3,614,333
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	1,200
HTM, Amortized Cost, 1 to 5 years	48,424
HTM, Amortized Cost, 5 to 10 years	125,609
HTM, Amortized Cost, More than 10 years	254,315
HTM, Amortized Cost, Not due at single maturity	2,124,287
Amortized Cost	2,553,835	2,613,648
HTM, Fair Value
HTM, Fair Value, Within 1 year	1,194
HTM, Fair Value, 1 to 5 years	44,000
HTM, Fair Value, 5 to 10 years	105,639
HTM, Fair Value, More than 10 years	200,350
HTM, Fair Value, Not due at single maturity	1,781,213
Fair value	2,132,396	2,191,073
U.S. Treasuries
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	232,932
AFS, Amortized Cost, 1 to 5 years	114,097
Amortized Cost	347,029	163,972
AFS, Fair Value
AFS, Fair Value, Within 1 year	232,830
AFS, Fair Value, 1 to 5 years	100,593
Fair Value	333,423	149,352
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	0
HTM, Amortized Cost, 1 to 5 years	19,849
Amortized Cost	19,849	19,834
HTM, Fair Value
HTM, Fair Value, Within 1 year	0
HTM, Fair Value, 1 to 5 years	17,495
Fair value	17,495	17,417
U.S. Government agencies & GSEs
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	338
AFS, Amortized Cost, 1 to 5 years	39,403
AFS, Amortized Cost, 5 to 10 years	71,084
AFS, Amortized Cost, More than 10 years	142,156
Amortized Cost	252,981	266,347
AFS, Fair Value
AFS, Fair Value, Within 1 year	331
AFS, Fair Value, 1 to 5 years	35,781
AFS, Fair Value, 5 to 10 years	63,053
AFS, Fair Value, More than 10 years	137,931
Fair Value	237,096	250,116
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	73,352
HTM, Amortized Cost, More than 10 years	26,427
Amortized Cost	99,779	99,679
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	61,460
HTM, Fair Value, More than 10 years	21,207
Fair value	82,667	81,510
State and political subdivisions
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	2,027
AFS, Amortized Cost, 1 to 5 years	15,948
AFS, Amortized Cost, 5 to 10 years	59,659
AFS, Amortized Cost, More than 10 years	105,567
Amortized Cost	183,201	329,723
AFS, Fair Value
AFS, Fair Value, Within 1 year	1,955
AFS, Fair Value, 1 to 5 years	14,904
AFS, Fair Value, 5 to 10 years	49,693
AFS, Fair Value, More than 10 years	94,549
Fair Value	161,101	303,748
HTM, Amortized Cost
HTM, Amortized Cost, Within 1 year	1,200
HTM, Amortized Cost, 1 to 5 years	28,575
HTM, Amortized Cost, 5 to 10 years	37,257
HTM, Amortized Cost, More than 10 years	227,888
Amortized Cost	294,920	295,945
HTM, Fair Value
HTM, Fair Value, Within 1 year	1,194
HTM, Fair Value, 1 to 5 years	26,505
HTM, Fair Value, 5 to 10 years	31,827
HTM, Fair Value, More than 10 years	179,143
Fair value	238,669	231,661
Corporate bonds
AFS, Amortized Cost
AFS, Amortized Cost, Within 1 year	5,177
AFS, Amortized Cost, 1 to 5 years	156,810
AFS, Amortized Cost, 5 to 10 years	56,097
AFS, Amortized Cost, More than 10 years	802
Amortized Cost	218,886	236,181
AFS, Fair Value
AFS, Fair Value, Within 1 year	5,014
AFS, Fair Value, 1 to 5 years	142,227
AFS, Fair Value, 5 to 10 years	48,643
AFS, Fair Value, More than 10 years	852
Fair Value	196,736	212,452
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	12,352
Fair value	12,352	12,412
Asset-backed securities
AFS, Amortized Cost
AFS, Amortized Cost, Not due at single maturity	198,279
Amortized Cost	198,279	239,220
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	192,960
Fair Value	192,960	$ 231,272
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	1,806,004
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	1,620,235
HTM, Amortized Cost
HTM, Amortized Cost, Not due at single maturity	1,438,048
HTM, Fair Value
HTM, Fair Value, Not due at single maturity	1,215,805
Commercial MBS
AFS, Amortized Cost
AFS, Amortized Cost, Not due at single maturity	700,722
AFS, Fair Value
AFS, Fair Value, Not due at single maturity	618,438
HTM, Amortized Cost
HTM, Amortized Cost, Not due at single maturity	686,239
HTM, Fair Value
HTM, Fair Value, Not due at single maturity	$ 565,408

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Investment Securities - AFS Sales Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 73,112	$ 380,661	$ 281,521
Gross realized gains	0	46	1,373	1,009
Gross realized losses	0	0	(3,017)	(4,697)
Securities gains (losses), net	0	46	(1,644)	(3,688)
Income tax expense (benefit) attributable to sales	$ 0	$ 11	$ (374)	$ (979)

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Loans and Leases and Allowance for Credit Losses - Major classifications of loan portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Classifications of loans
Total loans	$ 17,394,845		$ 15,334,627
Less allowance for credit losses - loans	(190,705)	$ (176,534)	(159,357)	$ (136,925)	$ (132,805)	$ (102,532)
Loans and leases, net	17,204,140		15,175,270
Commercial | Owner occupied commercial real estate
Classifications of loans
Total loans	3,110,612
Commercial | Income producing commercial real estate
Classifications of loans
Total loans	3,669,746
Commercial | Commercial & industrial
Classifications of loans
Total loans	2,550,191
Commercial | Construction
Classifications of loans
Total loans	1,739,208
Commercial | Equipment financing
Classifications of loans
Total loans	1,510,326
Residential | Construction
Classifications of loans
Total loans	463,278
Residential | Residential mortgage
Classifications of loans
Total loans	2,905,293
Residential | HELOC
Classifications of loans
Total loans	926,409
Residential | Manufactured housing
Classifications of loans
Total loans	339,969
Consumer
Classifications of loans
Total loans	179,813
Loans receivable
Classifications of loans
Total loans	17,394,845		15,334,627
Loans receivable | Commercial
Classifications of loans
Total loans	12,580,083		11,220,713
Loans receivable | Commercial | Owner occupied commercial real estate
Classifications of loans
Total loans	3,110,612		2,734,666
Less allowance for credit losses - loans	(21,788)	(20,831)	(19,834)	(16,774)	(15,945)	(14,282)
Loans receivable | Commercial | Income producing commercial real estate
Classifications of loans
Total loans	3,669,746		3,261,626
Less allowance for credit losses - loans	(38,775)	(33,607)	(32,082)	(33,284)	(33,539)	(24,156)
Loans receivable | Commercial | Commercial & industrial
Classifications of loans
Total loans	2,550,191		2,252,322
Less allowance for credit losses - loans	(29,856)	(28,312)	(23,504)	(18,267)	(18,386)	(16,592)
Loans receivable | Commercial | Construction
Classifications of loans
Total loans	1,739,208		1,597,848
Less allowance for credit losses - loans	(22,276)	(22,073)	(20,120)	(16,062)	(13,782)	(9,956)
Loans receivable | Commercial | Equipment financing
Classifications of loans
Total loans	1,510,326		1,374,251
Less allowance for credit losses - loans	(28,604)	(26,195)	(23,395)	(18,409)	(19,264)	(16,290)
Loans receivable | Residential | Construction
Classifications of loans
Total loans	463,278		442,553
Less allowance for credit losses - loans	(3,446)	(2,043)	(2,049)	(2,086)	(1,929)	(1,847)
Loans receivable | Residential | Residential mortgage
Classifications of loans
Total loans	2,905,293		2,355,061
Less allowance for credit losses - loans	(25,431)	(24,082)	(20,809)	(17,035)	(14,964)	(12,390)
Loans receivable | Residential | HELOC
Classifications of loans
Total loans	926,409		850,269
Less allowance for credit losses - loans	(10,609)	(10,337)	(8,707)	(7,487)	(7,128)	(6,568)
Loans receivable | Residential | Manufactured housing
Classifications of loans
Total loans	339,969		316,741
Less allowance for credit losses - loans	(9,204)	(8,424)	(8,098)	(6,614)	(7,083)	0
Loans receivable | Consumer
Classifications of loans
Total loans	179,813		149,290
Less allowance for credit losses - loans	$ (716)	$ (630)	$ (759)	$ (907)	$ (785)	$ (451)

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Loans and Leases and Allowance for Credit Losses - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) extension	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net investment in leases	$ 59,846	$ 45,988
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 58,000	$ 52,000
Loans receivable | Commercial | Equipment financing | Extension
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of extensions | extension	1
Extension from modification	3 months
Extended weighted average maturity	8 months
Loans receivable | Commercial | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted average payment delay term (in months)	3 months
Loans receivable | Commercial | Commercial & industrial | Extension
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delayed payment	$ 22,700
Loans receivable | Commercial | Commercial & industrial | Rate Reduction & Extension
Accounts, Notes, Loans and Financing Receivable [Line Items]
Extended weighted average maturity	3 years
Decrease in the weighted average interest rate	0.57%
Loans receivable | Commercial | Residential Mortgage and Manufactured Housing | Rate Reduction & Extension
Accounts, Notes, Loans and Financing Receivable [Line Items]
Extended weighted average maturity	15 years
Decrease in the weighted average interest rate	5.76%

XML

Loans and Leases and Allowance for Credit Losses - Loans Held for Investment Sold (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	$ 42,643	$ 59,660	$ 83,116	$ 111,439
Guaranteed portion of SBA/USDA loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	22,072	39,119	43,842	67,462
Equipment financing receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans sold	$ 20,571	$ 20,541	$ 39,274	$ 43,977

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Loans and Leases and Allowance for Credit Losses - Components of Net Investment in Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Net Investment in Leases
Minimum future lease payments receivable	$ 65,275	$ 49,723
Estimated residual value of leased equipment	3,670	2,804
Initial direct costs	1,131	767
Security deposits	(442)	(429)
Unearned income	(9,788)	(6,877)
Net investment in leases	$ 59,846	$ 45,988

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Loans and Leases and Allowance for Credit Losses - Minimum Future Lease Payments Expected to be Received from Equipment Financing Lease Contracts (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Minimum future lease payments expected to be received
Remainder of 2023	$ 11,352
2024	19,503
2025	15,648
2026	10,910
2027	6,564
Thereafter	1,298
Total	$ 65,275

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Loans and Leases and Allowance for Credit Losses - Loans by Aging Category and Accrual Status (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Total loans	$ 17,394,845	$ 15,334,627
Commercial | Owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	3,110,612
Commercial | Income producing commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	3,669,746
Commercial | Commercial & industrial
Financing Receivable, Past Due [Line Items]
Total loans	2,550,191
Commercial | Construction
Financing Receivable, Past Due [Line Items]
Total loans	1,739,208
Commercial | Equipment financing
Financing Receivable, Past Due [Line Items]
Total loans	1,510,326
Residential | Construction
Financing Receivable, Past Due [Line Items]
Total loans	463,278
Residential | Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	2,905,293
Residential | HELOC
Financing Receivable, Past Due [Line Items]
Total loans	926,409
Residential | Manufactured housing
Financing Receivable, Past Due [Line Items]
Total loans	339,969
Consumer
Financing Receivable, Past Due [Line Items]
Total loans	179,813
Loans receivable
Financing Receivable, Past Due [Line Items]
Total loans	17,394,845	15,334,627
Nonaccrual Loans	102,619	44,232
Loans receivable | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	17,261,733	15,263,066
Loans receivable | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	23,741	21,828
Loans receivable | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	6,752	5,486
Loans receivable | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	15
Loans receivable | Commercial
Financing Receivable, Past Due [Line Items]
Total loans	12,580,083	11,220,713
Nonaccrual Loans	75,940	24,449
Loans receivable | Commercial | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	12,491,461	11,182,980
Loans receivable | Commercial | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	8,915	10,010
Loans receivable | Commercial | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	3,767	3,268
Loans receivable | Commercial | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	6
Loans receivable | Commercial | Owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	3,110,612	2,734,666
Nonaccrual Loans	3,471	523
Loans receivable | Commercial | Owner occupied commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,105,295	2,731,574
Loans receivable | Commercial | Owner occupied commercial real estate | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,842	1,522
Loans receivable | Commercial | Owner occupied commercial real estate | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	4	1,047
Loans receivable | Commercial | Owner occupied commercial real estate | Days Past Due Category, Over 90
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	3,669,746	3,261,626
Nonaccrual Loans	32,542	3,885
Loans receivable | Commercial | Income producing commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,636,300	3,257,232
Loans receivable | Commercial | Income producing commercial real estate | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	790	468
Loans receivable | Commercial | Income producing commercial real estate | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	114	41
Loans receivable | Commercial | Income producing commercial real estate | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Commercial | Commercial & industrial
Financing Receivable, Past Due [Line Items]
Total loans	2,550,191	2,252,322
Nonaccrual Loans	30,823	14,470
Loans receivable | Commercial | Commercial & industrial | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,517,176	2,234,284
Loans receivable | Commercial | Commercial & industrial | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,532	3,288
Loans receivable | Commercial | Commercial & industrial | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	660	274
Loans receivable | Commercial | Commercial & industrial | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	6
Loans receivable | Commercial | Construction
Financing Receivable, Past Due [Line Items]
Total loans	1,739,208	1,597,848
Nonaccrual Loans	115	133
Loans receivable | Commercial | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	1,738,394	1,597,268
Loans receivable | Commercial | Construction | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	664	447
Loans receivable | Commercial | Construction | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	35	0
Loans receivable | Commercial | Construction | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Commercial | Equipment financing
Financing Receivable, Past Due [Line Items]
Total loans	1,510,326	1,374,251
Nonaccrual Loans	8,989	5,438
Loans receivable | Commercial | Equipment financing | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	1,494,296	1,362,622
Loans receivable | Commercial | Equipment financing | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	4,087	4,285
Loans receivable | Commercial | Equipment financing | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	2,954	1,906
Loans receivable | Commercial | Equipment financing | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Construction
Financing Receivable, Past Due [Line Items]
Total loans	463,278	442,553
Nonaccrual Loans	1,682	405
Loans receivable | Residential | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	460,627	441,673
Loans receivable | Residential | Construction | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	967	20
Loans receivable | Residential | Construction | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	2	455
Loans receivable | Residential | Construction | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	2,905,293	2,355,061
Nonaccrual Loans	11,419	10,919
Loans receivable | Residential | Residential mortgage | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,889,244	2,342,196
Loans receivable | Residential | Residential mortgage | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	3,408	1,939
Loans receivable | Residential | Residential mortgage | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,222	7
Loans receivable | Residential | Residential mortgage | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | HELOC
Financing Receivable, Past Due [Line Items]
Total loans	926,409	850,269
Nonaccrual Loans	2,777	1,888
Loans receivable | Residential | HELOC | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	921,413	844,888
Loans receivable | Residential | HELOC | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	2,077	2,709
Loans receivable | Residential | HELOC | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	142	784
Loans receivable | Residential | HELOC | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Residential | Manufactured housing
Financing Receivable, Past Due [Line Items]
Total loans	339,969	316,741
Nonaccrual Loans	10,782	6,518
Loans receivable | Residential | Manufactured housing | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	320,342	302,386
Loans receivable | Residential | Manufactured housing | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	7,311	6,913
Loans receivable | Residential | Manufactured housing | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,534	924
Loans receivable | Residential | Manufactured housing | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Loans receivable | Consumer
Financing Receivable, Past Due [Line Items]
Total loans	179,813	149,290
Nonaccrual Loans	19	53
Loans receivable | Consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans	178,646	148,943
Loans receivable | Consumer | Loans Past Due, 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total loans	1,063	237
Loans receivable | Consumer | Loans Past Due, 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total loans	85	48
Loans receivable | Consumer | Days Past Due Category, Over 90
Financing Receivable, Past Due [Line Items]
Total loans	$ 0	$ 9

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Loans and Leases and Allowance for Credit Losses - Nonaccrual Loans by Loan Class (Details) - Loans receivable - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Nonaccrual loans
Nonaccrual loans with no allowance	$ 66,364	$ 21,048
Nonaccrual loans with an allowance	36,255	23,184
Nonaccrual loans	102,619	44,232
Commercial
Nonaccrual loans
Nonaccrual loans with no allowance	63,749	18,145
Nonaccrual loans with an allowance	12,191	6,304
Nonaccrual loans	75,940	24,449
Commercial | Owner occupied commercial real estate
Nonaccrual loans
Nonaccrual loans with no allowance	2,507	276
Nonaccrual loans with an allowance	964	247
Nonaccrual loans	3,471	523
Commercial | Income producing commercial real estate
Nonaccrual loans
Nonaccrual loans with no allowance	32,470	3,798
Nonaccrual loans with an allowance	72	87
Nonaccrual loans	32,542	3,885
Commercial | Commercial & industrial
Nonaccrual loans
Nonaccrual loans with no allowance	28,665	13,917
Nonaccrual loans with an allowance	2,158	553
Nonaccrual loans	30,823	14,470
Commercial | Construction
Nonaccrual loans
Nonaccrual loans with no allowance	51	69
Nonaccrual loans with an allowance	64	64
Nonaccrual loans	115	133
Commercial | Equipment financing
Nonaccrual loans
Nonaccrual loans with no allowance	56	85
Nonaccrual loans with an allowance	8,933	5,353
Nonaccrual loans	8,989	5,438
Residential | Construction
Nonaccrual loans
Nonaccrual loans with no allowance	328	311
Nonaccrual loans with an allowance	1,354	94
Nonaccrual loans	1,682	405
Residential | Residential mortgage
Nonaccrual loans
Nonaccrual loans with no allowance	1,959	2,159
Nonaccrual loans with an allowance	9,460	8,760
Nonaccrual loans	11,419	10,919
Residential | HELOC
Nonaccrual loans
Nonaccrual loans with no allowance	325	430
Nonaccrual loans with an allowance	2,452	1,458
Nonaccrual loans	2,777	1,888
Residential | Manufactured housing
Nonaccrual loans
Nonaccrual loans with no allowance	0	0
Nonaccrual loans with an allowance	10,782	6,518
Nonaccrual loans	10,782	6,518
Consumer
Nonaccrual loans
Nonaccrual loans with no allowance	3	3
Nonaccrual loans with an allowance	16	50
Nonaccrual loans	$ 19	$ 53

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Loans and Leases and Allowance for Credit Losses - Amortized Cost of Loans by Risk Category by Vintage Year (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					$ 4,978,428
Originated in prior year					3,546,181
Originated two years prior					2,415,804
Originated three years prior					966,556
Originated four years prior					605,713
Originated five or more years prior					943,534
Revolvers					1,810,870
Revolvers converted to term loans					67,541
Total loans	$ 17,394,845		$ 17,394,845		15,334,627
Current period gross charge-offs, Total	12,172	$ 3,583	21,696	$ 9,207
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					4,853,439
Originated in prior year					3,489,583
Originated two years prior					2,349,242
Originated three years prior					892,371
Originated four years prior					543,350
Originated five or more years prior					895,196
Revolvers					1,756,105
Revolvers converted to term loans					60,283
Total loans					14,839,569
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					48,204
Originated in prior year					30,951
Originated two years prior					53,769
Originated three years prior					57,404
Originated four years prior					29,014
Originated five or more years prior					11,841
Revolvers					15,129
Revolvers converted to term loans					588
Total loans					246,900
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					76,785
Originated in prior year					25,647
Originated two years prior					12,793
Originated three years prior					16,781
Originated four years prior					33,349
Originated five or more years prior					36,497
Revolvers					39,636
Revolvers converted to term loans					6,670
Total loans					248,158
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					3,464,040
Originated in prior year					2,580,175
Originated two years prior					1,950,688
Originated three years prior					760,506
Originated four years prior					453,123
Originated five or more years prior					602,065
Revolvers					905,981
Revolvers converted to term loans					33,045
Total loans					10,749,623
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					48,204
Originated in prior year					30,951
Originated two years prior					53,769
Originated three years prior					57,404
Originated four years prior					29,014
Originated five or more years prior					11,841
Revolvers					15,129
Revolvers converted to term loans					588
Total loans					246,900
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year					74,408
Originated in prior year					23,071
Originated two years prior					9,968
Originated three years prior					13,934
Originated four years prior					29,544
Originated five or more years prior					29,330
Revolvers					39,542
Revolvers converted to term loans					4,393
Total loans					224,190
Commercial | Owner occupied commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	364,128		364,128
Originated in prior year	697,446		697,446
Originated two years prior	666,242		666,242
Originated three years prior	628,265		628,265
Originated four years prior	226,464		226,464
Originated five or more years prior	387,646		387,646
Revolvers	118,672		118,672
Revolvers converted to term loans	21,749		21,749
Total loans	3,110,612		3,110,612
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			0
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			207
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			207
Commercial | Owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	359,037		359,037		669,451
Originated in prior year	683,426		683,426		671,395
Originated two years prior	650,179		650,179		611,900
Originated three years prior	613,901		613,901		204,990
Originated four years prior	214,542		214,542		127,738
Originated five or more years prior	372,915		372,915		253,890
Revolvers	114,607		114,607		114,975
Revolvers converted to term loans	18,740		18,740		5,779
Total loans	3,027,347		3,027,347		2,660,118
Commercial | Owner occupied commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	1,626		1,626		4,236
Originated in prior year	5,675		5,675		8,036
Originated two years prior	6,968		6,968		4,641
Originated three years prior	6,764		6,764		10,299
Originated four years prior	8,612		8,612		1,232
Originated five or more years prior	5,260		5,260		11,596
Revolvers	3,855		3,855		3,875
Revolvers converted to term loans	268		268		279
Total loans	39,028		39,028		44,194
Commercial | Owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	3,465		3,465		9,835
Originated in prior year	8,345		8,345		77
Originated two years prior	9,095		9,095		2,873
Originated three years prior	7,600		7,600		4,490
Originated four years prior	3,310		3,310		1,204
Originated five or more years prior	9,471		9,471		8,055
Revolvers	210		210		209
Revolvers converted to term loans	2,741		2,741		3,611
Total loans	44,237		44,237		30,354
Commercial | Income producing commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	387,561		387,561
Originated in prior year	883,953		883,953
Originated two years prior	772,909		772,909
Originated three years prior	794,864		794,864
Originated four years prior	320,145		320,145
Originated five or more years prior	451,666		451,666
Revolvers	52,883		52,883
Revolvers converted to term loans	5,765		5,765
Total loans	3,669,746		3,669,746
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			3,033
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			1,781
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			4,814
Commercial | Income producing commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	306,457		306,457		812,804
Originated in prior year	828,657		828,657		753,936
Originated two years prior	750,600		750,600		733,946
Originated three years prior	763,295		763,295		248,259
Originated four years prior	271,098		271,098		171,108
Originated five or more years prior	414,954		414,954		255,485
Revolvers	52,883		52,883		50,026
Revolvers converted to term loans	5,706		5,706		9,953
Total loans	3,393,650		3,393,650		3,035,517
Commercial | Income producing commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	58,790		58,790		41,423
Originated in prior year	22,100		22,100		1,137
Originated two years prior	21,311		21,311		44,802
Originated three years prior	14,353		14,353		32,821
Originated four years prior	31,383		31,383		21,647
Originated five or more years prior	4,974		4,974		50
Revolvers	0		0		805
Revolvers converted to term loans	0		0		0
Total loans	152,911		152,911		142,685
Commercial | Income producing commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	22,314		22,314		52,384
Originated in prior year	33,196		33,196		1,357
Originated two years prior	998		998		1,867
Originated three years prior	17,216		17,216		4,180
Originated four years prior	17,664		17,664		13,209
Originated five or more years prior	31,738		31,738		10,365
Revolvers	0		0		0
Revolvers converted to term loans	59		59		62
Total loans	123,185		123,185		83,424
Commercial | Commercial & industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	413,361		413,361
Originated in prior year	555,545		555,545
Originated two years prior	409,496		409,496
Originated three years prior	174,008		174,008
Originated four years prior	125,963		125,963
Originated five or more years prior	188,410		188,410
Revolvers	664,762		664,762
Revolvers converted to term loans	18,646		18,646
Total loans	2,550,191		2,550,191
Current period gross charge-offs, in current fiscal year			1,330
Current period gross charge-offs, in prior year			1,132
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			444
Current period gross charge-offs, four years prior			198
Current period gross charge-offs, five or more years prior			41
Revolvers			0
Revolvers converted to term loans			1,506
Current period gross charge-offs, Total			4,651
Commercial | Commercial & industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	391,898		391,898		535,594
Originated in prior year	545,473		545,473		388,851
Originated two years prior	366,189		366,189		186,292
Originated three years prior	159,719		159,719		134,789
Originated four years prior	121,611		121,611		119,547
Originated five or more years prior	184,837		184,837		71,503
Revolvers	600,042		600,042		670,161
Revolvers converted to term loans	15,490		15,490		15,880
Total loans	2,385,259		2,385,259		2,122,617
Commercial | Commercial & industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	209		209		1,695
Originated in prior year	478		478		21,745
Originated two years prior	4,385		4,385		2,686
Originated three years prior	476		476		1,047
Originated four years prior	88		88		1,244
Originated five or more years prior	855		855		167
Revolvers	18,596		18,596		10,449
Revolvers converted to term loans	181		181		309
Total loans	25,268		25,268		39,342
Commercial | Commercial & industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	21,254		21,254		10,431
Originated in prior year	9,594		9,594		19,477
Originated two years prior	38,922		38,922		3,880
Originated three years prior	13,813		13,813		4,557
Originated four years prior	4,264		4,264		11,019
Originated five or more years prior	2,718		2,718		1,189
Revolvers	46,124		46,124		39,333
Revolvers converted to term loans	2,975		2,975		477
Total loans	139,664		139,664		90,363
Commercial | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	348,168		348,168
Originated in prior year	665,054		665,054
Originated two years prior	384,020		384,020
Originated three years prior	194,496		194,496
Originated four years prior	58,734		58,734
Originated five or more years prior	31,362		31,362
Revolvers	56,057		56,057
Revolvers converted to term loans	1,317		1,317
Total loans	1,739,208		1,739,208
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			0
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			0
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			0
Commercial | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	347,916		347,916		732,147
Originated in prior year	660,378		660,378		391,963
Originated two years prior	383,957		383,957		256,087
Originated three years prior	192,245		192,245		78,778
Originated four years prior	58,733		58,733		11,977
Originated five or more years prior	31,262		31,262		19,973
Revolvers	56,057		56,057		70,819
Revolvers converted to term loans	1,077		1,077		1,433
Total loans	1,731,625		1,731,625		1,563,177
Commercial | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	58		58		850
Originated in prior year	135		135		33
Originated two years prior	28		28		1,640
Originated three years prior	52		52		13,237
Originated four years prior	0		0		4,891
Originated five or more years prior	0		0		28
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	273		273		20,679
Commercial | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	194		194		133
Originated in prior year	4,541		4,541		0
Originated two years prior	35		35		45
Originated three years prior	2,199		2,199		2
Originated four years prior	1		1		3,876
Originated five or more years prior	100		100		9,693
Revolvers	0		0		0
Revolvers converted to term loans	240		240		243
Total loans	7,310		7,310		13,992
Commercial | Equipment financing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	423,186		423,186
Originated in prior year	593,799		593,799
Originated two years prior	302,702		302,702
Originated three years prior	118,310		118,310
Originated four years prior	62,833		62,833
Originated five or more years prior	9,496		9,496
Revolvers	0		0
Revolvers converted to term loans	0		0
Total loans	1,510,326		1,510,326
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			3,129
Current period gross charge-offs, two years prior			3,086
Current period gross charge-offs, three years prior			895
Current period gross charge-offs, four years prior			389
Current period gross charge-offs, five or more years prior			280
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			7,779
Commercial | Equipment financing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	422,344		422,344		714,044
Originated in prior year	589,302		589,302		374,030
Originated two years prior	299,127		299,127		162,463
Originated three years prior	117,201		117,201		93,690
Originated four years prior	61,859		61,859		22,753
Originated five or more years prior	9,413		9,413		1,214
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	1,499,246		1,499,246		1,368,194
Commercial | Equipment financing | 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
Commercial | Equipment financing | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	842		842		1,625
Originated in prior year	4,497		4,497		2,160
Originated two years prior	3,575		3,575		1,303
Originated three years prior	1,109		1,109		705
Originated four years prior	974		974		236
Originated five or more years prior	83		83		28
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	11,080		11,080		6,057
Residential | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	174,803		174,803
Originated in prior year	240,867		240,867
Originated two years prior	32,516		32,516
Originated three years prior	6,143		6,143
Originated four years prior	1,435		1,435
Originated five or more years prior	7,483		7,483
Revolvers	0		0
Revolvers converted to term loans	31		31
Total loans	463,278		463,278
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			637
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			0
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			637
Residential | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	174,579		174,579		344,443
Originated in prior year	239,543		239,543		82,289
Originated two years prior	32,086		32,086		4,478
Originated three years prior	6,143		6,143		1,742
Originated four years prior	1,417		1,417		1,545
Originated five or more years prior	7,349		7,349		7,549
Revolvers	0		0		0
Revolvers converted to term loans	31		31		31
Total loans	461,148		461,148		442,077
Residential | Construction | 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 | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	224		224		32
Originated in prior year	1,324		1,324		268
Originated two years prior	430		430		0
Originated three years prior	0		0		20
Originated four years prior	18		18		3
Originated five or more years prior	134		134		153
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	2,130		2,130		476
Residential | Residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	446,982		446,982
Originated in prior year	989,691		989,691
Originated two years prior	759,990		759,990
Originated three years prior	338,268		338,268
Originated four years prior	91,979		91,979
Originated five or more years prior	274,204		274,204
Revolvers	477		477
Revolvers converted to term loans	3,702		3,702
Total loans	2,905,293		2,905,293
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			23
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			22
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			45
Residential | Residential mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	446,768		446,768		894,960
Originated in prior year	988,186		988,186		742,821
Originated two years prior	758,310		758,310		329,762
Originated three years prior	337,356		337,356		91,300
Originated four years prior	90,331		90,331		55,785
Originated five or more years prior	266,705		266,705		223,846
Revolvers	477		477		8
Revolvers converted to term loans	3,516		3,516		3,133
Total loans	2,891,649		2,891,649		2,341,615
Residential | Residential mortgage | 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 | Residential mortgage | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	214		214		1,195
Originated in prior year	1,505		1,505		964
Originated two years prior	1,680		1,680		1,364
Originated three years prior	912		912		1,836
Originated four years prior	1,648		1,648		2,589
Originated five or more years prior	7,499		7,499		5,296
Revolvers	0		0		0
Revolvers converted to term loans	186		186		202
Total loans	13,644		13,644		13,446
Residential | HELOC
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	897,097		897,097
Revolvers converted to term loans	29,312		29,312
Total loans	926,409		926,409
Current period gross charge-offs, in current fiscal year			0
Current period gross charge-offs, in prior year			0
Current period gross charge-offs, two years prior			0
Current period gross charge-offs, three years prior			0
Current period gross charge-offs, four years prior			0
Current period gross charge-offs, five or more years prior			0
Revolvers			0
Revolvers converted to term loans			145
Current period gross charge-offs, Total			145
Residential | HELOC | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0		0
Originated in prior year	0		0		0
Originated two years prior	0		0		0
Originated three years prior	0		0		0
Originated four years prior	0		0		0
Originated five or more years prior	0		0		0
Revolvers	897,097		897,097		824,153
Revolvers converted to term loans	26,231		26,231		23,948
Total loans	923,328		923,328		848,101
Residential | HELOC | 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 | HELOC | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0		0
Originated in prior year	0		0		0
Originated two years prior	0		0		0
Originated three years prior	0		0		0
Originated four years prior	0		0		0
Originated five or more years prior	0		0		0
Revolvers	0		0		93
Revolvers converted to term loans	3,081		3,081		2,075
Total loans	3,081		3,081		2,168
Residential | Manufactured housing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	35,411		35,411
Originated in prior year	77,376		77,376
Originated two years prior	54,547		54,547
Originated three years prior	48,168		48,168
Originated four years prior	34,368		34,368
Originated five or more years prior	90,099		90,099
Revolvers	0		0
Revolvers converted to term loans	0		0
Total loans	339,969		339,969
Current period gross charge-offs, in current fiscal year			3
Current period gross charge-offs, in prior year			434
Current period gross charge-offs, two years prior			201
Current period gross charge-offs, three years prior			268
Current period gross charge-offs, four years prior			105
Current period gross charge-offs, five or more years prior			263
Revolvers			0
Revolvers converted to term loans			0
Current period gross charge-offs, Total			1,274
Residential | Manufactured housing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	35,151		35,151		78,097
Originated in prior year	74,072		74,072		54,976
Originated two years prior	52,438		52,438		48,908
Originated three years prior	46,466		46,466		34,836
Originated four years prior	33,278		33,278		31,060
Originated five or more years prior	86,573		86,573		61,148
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	327,978		327,978		309,025
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	260		260		1,130
Originated in prior year	3,304		3,304		1,267
Originated two years prior	2,109		2,109		1,427
Originated three years prior	1,702		1,702		990
Originated four years prior	1,090		1,090		1,188
Originated five or more years prior	3,526		3,526		1,714
Revolvers	0		0		0
Revolvers converted to term loans	0		0		0
Total loans	11,991		11,991		7,716
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	57,267		57,267
Originated in prior year	53,899		53,899
Originated two years prior	25,340		25,340
Originated three years prior	12,409		12,409
Originated four years prior	2,263		2,263
Originated five or more years prior	1,998		1,998
Revolvers	26,518		26,518
Revolvers converted to term loans	119		119
Total loans	179,813		179,813
Current period gross charge-offs, in current fiscal year			1,838
Current period gross charge-offs, in prior year			103
Current period gross charge-offs, two years prior			62
Current period gross charge-offs, three years prior			24
Current period gross charge-offs, four years prior			13
Current period gross charge-offs, five or more years prior			1
Revolvers			2
Revolvers converted to term loans			101
Current period gross charge-offs, Total			2,144
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	57,267		57,267		71,899
Originated in prior year	53,898		53,898		29,322
Originated two years prior	25,280		25,280		15,406
Originated three years prior	12,381		12,381		3,987
Originated four years prior	2,263		2,263		1,837
Originated five or more years prior	1,977		1,977		588
Revolvers	26,518		26,518		25,963
Revolvers converted to term loans	119		119		126
Total loans	179,703		179,703		149,128
Consumer | 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
Consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0		20
Originated in prior year	1		1		77
Originated two years prior	60		60		34
Originated three years prior	28		28		1
Originated four years prior	0		0		25
Originated five or more years prior	21		21		4
Revolvers	0		0		1
Revolvers converted to term loans	0		0		0
Total loans	$ 110		$ 110		$ 162

XML

Loans and Leases and Allowance for Credit Losses - Modifications to Borrowers Experiencing Financial Difficulty (Details) - Loans receivable $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 100,590
% of Total Class of Receivable	0.60%
Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 48,982
Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	29,517
Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	22,091
Commercial | Income producing commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 59,340
% of Total Class of Receivable	1.60%
Commercial | Income producing commercial real estate | Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 38,138
Commercial | Income producing commercial real estate | Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Commercial | Income producing commercial real estate | Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	21,202
Commercial | Commercial & industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 32,235
% of Total Class of Receivable	1.30%
Commercial | Commercial & industrial | Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 2,718
Commercial | Commercial & industrial | Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	29,517
Commercial | Commercial & industrial | Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Commercial | Equipment financing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 8,069
% of Total Class of Receivable	0.50%
Commercial | Equipment financing | Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 8,069
Commercial | Equipment financing | Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Commercial | Equipment financing | Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Residential | Residential mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 687
% of Total Class of Receivable	0.00%
Residential | Residential mortgage | Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 57
Residential | Residential mortgage | Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Residential | Residential mortgage | Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	630
Residential | Manufactured housing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 259
% of Total Class of Receivable	0.10%
Residential | Manufactured housing | Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 0
Residential | Manufactured housing | Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	0
Residential | Manufactured housing | Rate Reduction & Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Post-Modification Amortized Cost by Type of Modification	$ 259

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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
ACL
ACL - loans, Beginning Balance	$ 176,534	$ 132,805	$ 159,357	$ 102,532
ACL- loans, Initial ACL - PCD loans			2,704	12,737
ACL - loans, Charge-Offs	(12,172)	(3,583)	(21,696)	(9,207)
ACL - loans, Recoveries	3,773	4,652	6,213	7,298
ACL - loans, Provision	22,570	3,051	44,127	23,565
ACL - loans, Ending Balance	190,705	136,925	190,705	136,925
ACL - unfunded commitments, Beginning Balance	21,389	13,564	21,163	10,992
ACL - unfunded commitments, Provision	183	2,553	409	5,125
ACL - unfunded commitments, Ending Balance	21,572	16,117	21,572	16,117
Total ACL, Beginning Balance	197,923	146,369	180,520	113,524
Total ACL, Initial ACL - PCD loans			2,704	12,737
Total ACL, Charge-Offs	(12,172)	(3,583)	(21,696)	(9,207)
Total ACL, Recoveries	3,773	4,652	6,213	7,298
Total ACL, Provision	22,753	5,604	44,536	28,690
Total ACL, Ending Balance	212,277	153,042	212,277	153,042
Commercial | Owner occupied commercial real estate
ACL
ACL - loans, Charge-Offs			(207)
Commercial | Income producing commercial real estate
ACL
ACL - loans, Charge-Offs			(4,814)
Commercial | Commercial & industrial
ACL
ACL - loans, Charge-Offs			(4,651)
Commercial | Construction
ACL
ACL - loans, Charge-Offs			0
Commercial | Equipment financing
ACL
ACL - loans, Charge-Offs			(7,779)
Residential | Construction
ACL
ACL - loans, Charge-Offs			(637)
Residential | Residential mortgage
ACL
ACL - loans, Charge-Offs			(45)
Residential | HELOC
ACL
ACL - loans, Charge-Offs			(145)
Residential | Manufactured housing
ACL
ACL - loans, Charge-Offs			(1,274)
Consumer
ACL
ACL - loans, Charge-Offs			(2,144)
Loans receivable | Commercial | Owner occupied commercial real estate
ACL
ACL - loans, Beginning Balance	20,831	15,945	19,834	14,282
ACL- loans, Initial ACL - PCD loans			181	266
ACL - loans, Charge-Offs	0	0	(207)	0
ACL - loans, Recoveries	205	1,496	322	1,541
ACL - loans, Provision	752	(667)	1,658	685
ACL - loans, Ending Balance	21,788	16,774	21,788	16,774
Loans receivable | Commercial | Income producing commercial real estate
ACL
ACL - loans, Beginning Balance	33,607	33,539	32,082	24,156
ACL- loans, Initial ACL - PCD loans			307	4,366
ACL - loans, Charge-Offs	(2,033)	0	(4,814)	0
ACL - loans, Recoveries	849	116	1,324	406
ACL - loans, Provision	6,352	(371)	9,876	4,356
ACL - loans, Ending Balance	38,775	33,284	38,775	33,284
Loans receivable | Commercial | Commercial & industrial
ACL
ACL - loans, Beginning Balance	28,312	18,386	23,504	16,592
ACL- loans, Initial ACL - PCD loans			1,358	2,337
ACL - loans, Charge-Offs	(3,753)	(1,011)	(4,651)	(4,605)
ACL - loans, Recoveries	1,007	1,313	1,680	1,978
ACL - loans, Provision	4,290	(421)	7,965	1,965
ACL - loans, Ending Balance	29,856	18,267	29,856	18,267
Loans receivable | Commercial | Construction
ACL
ACL - loans, Beginning Balance	22,073	13,782	20,120	9,956
ACL- loans, Initial ACL - PCD loans			39	2,857
ACL - loans, Charge-Offs	0	0	0	(41)
ACL - loans, Recoveries	105	144	142	558
ACL - loans, Provision	98	2,136	1,975	2,732
ACL - loans, Ending Balance	22,276	16,062	22,276	16,062
Loans receivable | Commercial | Equipment financing
ACL
ACL - loans, Beginning Balance	26,195	19,264	23,395	16,290
ACL- loans, Initial ACL - PCD loans			0	0
ACL - loans, Charge-Offs	(3,752)	(1,709)	(7,779)	(2,657)
ACL - loans, Recoveries	1,215	802	1,867	1,483
ACL - loans, Provision	4,946	52	11,121	3,293
ACL - loans, Ending Balance	28,604	18,409	28,604	18,409
Loans receivable | Residential | Construction
ACL
ACL - loans, Beginning Balance	2,043	1,929	2,049	1,847
ACL- loans, Initial ACL - PCD loans			124	1
ACL - loans, Charge-Offs	(637)	0	(637)	0
ACL - loans, Recoveries	14	76	29	99
ACL - loans, Provision	2,026	81	1,881	139
ACL - loans, Ending Balance	3,446	2,086	3,446	2,086
Loans receivable | Residential | Residential mortgage
ACL
ACL - loans, Beginning Balance	24,082	14,964	20,809	12,390
ACL- loans, Initial ACL - PCD loans			157	385
ACL - loans, Charge-Offs	(26)	0	(45)	(53)
ACL - loans, Recoveries	69	51	175	201
ACL - loans, Provision	1,306	2,020	4,335	4,112
ACL - loans, Ending Balance	25,431	17,035	25,431	17,035
Loans receivable | Residential | HELOC
ACL
ACL - loans, Beginning Balance	10,337	7,128	8,707	6,568
ACL- loans, Initial ACL - PCD loans			534	60
ACL - loans, Charge-Offs	(24)	0	(145)	(9)
ACL - loans, Recoveries	83	346	171	436
ACL - loans, Provision	213	13	1,342	432
ACL - loans, Ending Balance	10,609	7,487	10,609	7,487
Loans receivable | Residential | Manufactured housing
ACL
ACL - loans, Beginning Balance	8,424	7,083	8,098	0
ACL- loans, Initial ACL - PCD loans			0	2,438
ACL - loans, Charge-Offs	(620)	(135)	(1,274)	(308)
ACL - loans, Recoveries	0	0	26	9
ACL - loans, Provision	1,400	(334)	2,354	4,475
ACL - loans, Ending Balance	9,204	6,614	9,204	6,614
Loans receivable | Consumer
ACL
ACL - loans, Beginning Balance	630	785	759	451
ACL- loans, Initial ACL - PCD loans			4	27
ACL - loans, Charge-Offs	(1,327)	(728)	(2,144)	(1,534)
ACL - loans, Recoveries	226	308	477	587
ACL - loans, Provision	1,187	542	1,620	1,376
ACL - loans, Ending Balance	$ 716	$ 907	$ 716	$ 907

XML

Derivatives and Hedging Activities - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Notional Amount	$ 5,037,539	$ 2,577,047
Derivative Asset
Total gross derivative instruments	58,750	50,636
Less: Amounts subject to master netting agreements	(916)	(346)
Less: Cash collateral received/pledged	(46,248)	(38,386)
Net amount	11,586	11,904
Derivative Liability
Total gross derivative instruments	104,786	99,543
Less: Amounts subject to master netting agreements	(916)	(346)
Less: Cash collateral received/pledged	(12,801)	(13,089)
Net amount	91,069	86,108
Derivative assets
Derivative Asset
Total gross derivative instruments	58,750	50,636
Derivative liabilities
Derivative Liability
Total gross derivative instruments	104,786	99,543
Designated as hedging instrument
Derivatives, Fair Value [Line Items]
Notional Amount	817,473	120,000
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	40,000	20,000
Designated as hedging instrument | Fair value hedge of AFS debt securities
Derivatives, Fair Value [Line Items]
Notional Amount	677,473	0
Designated as hedging instrument | Derivative assets
Derivative Asset
Derivatives designated as hedging instruments	16,261	16,191
Designated as hedging instrument | Derivative assets | Cash flow hedge of subordinated debt
Derivative Asset
Cash flow hedge	16,261	16,191
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 AFS debt securities
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 AFS debt securities
Derivative Liability
Fair value hedge	0	0
Not designated as hedging instrument
Derivatives, Fair Value [Line Items]
Notional Amount	4,220,066	2,457,047
Not designated as hedging instrument | Customer derivative positions
Derivatives, Fair Value [Line Items]
Notional Amount	2,034,468	1,097,578
Not designated as hedging instrument | Dealer offsets to customer derivative positions
Derivatives, Fair Value [Line Items]
Notional Amount	1,803,106	1,097,578
Not designated as hedging instrument | Risk participations
Derivatives, Fair Value [Line Items]
Notional Amount	130,392	88,586
Not designated as hedging instrument | Mortgage banking - loan commitment
Derivatives, Fair Value [Line Items]
Notional Amount	48,090	19,685
Not designated as hedging instrument | Mortgage banking - forward sales commitment
Derivatives, Fair Value [Line Items]
Notional Amount	100,140	49,750
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	42,489	34,445
Not designated as hedging instrument | Derivative assets | Customer derivative positions
Derivative Asset
Derivatives not designated as hedging instruments	874	341
Not designated as hedging instrument | Derivative assets | Dealer offsets to customer derivative positions
Derivative Asset
Derivatives not designated as hedging instruments	29,360	22,393
Not designated as hedging instrument | Derivative assets | Risk participations
Derivative Asset
Derivatives not designated as hedging instruments	0	15
Not designated as hedging instrument | Derivative assets | Mortgage banking - loan commitment
Derivative Asset
Derivatives not designated as hedging instruments	991	394
Not designated as hedging instrument | Derivative assets | Mortgage banking - forward sales commitment
Derivative Asset
Derivatives not designated as hedging instruments	383	198
Not designated as hedging instrument | Derivative assets | Bifurcated embedded derivatives
Derivative Asset
Derivatives not designated as hedging instruments	10,881	11,104
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	104,786	99,543
Not designated as hedging instrument | Derivative liabilities | Customer derivative positions
Derivative Liability
Derivatives not designated as hedging instruments	91,307	86,358
Not designated as hedging instrument | Derivative liabilities | Dealer offsets to customer derivative positions
Derivative Liability
Derivatives not designated as hedging instruments	901	274
Not designated as hedging instrument | Derivative liabilities | Risk participations
Derivative Liability
Derivatives not designated as hedging instruments	22	1
Not designated as hedging instrument | Derivative liabilities | Mortgage banking - loan commitment
Derivative Liability
Derivatives not designated as hedging instruments	2	0
Not designated as hedging instrument | Derivative liabilities | Mortgage banking - forward sales commitment
Derivative Liability
Derivatives not designated as hedging instruments	14	71
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	$ 12,540	$ 12,839

XML

Derivatives and Hedging Activities - Narrative (Details) $ in Thousands	Jun. 30, 2023 USD ($) contract	Dec. 31, 2022 USD ($)
Derivative Instruments [Line Items]
Gains to be reclassified from accumulated other comprehensive income into earnings over the next twelve months	$ 5,550
Aggregate notional amount	5,037,539	$ 2,577,047
Debt Securities AFS | Fair Value Hedging
Derivative Instruments [Line Items]
Aggregate notional amount	$ 677,000
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value Hedging | Interest expense- deposits | Interest Expense
Fair value hedges:
Net income recognized	$ 0	$ 0	$ 0	$ 28
Fair Value Hedging | Interest revenue- investment securities | Interest Revenue
Fair value hedges:
Net income recognized	910	0	910	0
Recognized on derivative interest settlements	2,310	0	2,310	0
Recognized on derivatives	13,889	0	13,889	0
Recognized on hedged items	(15,289)	0	(15,289)	0
Cash flow hedging | Interest expense- long term debt | Interest Expense
Fair value hedges:
Net income recognized	1,234	(106)	2,056	(247)
Premium amortization expense excluded from assessment of hedge effectiveness	$ 112	$ 118	$ 229	$ 234

XML

Derivatives and Hedging Activities - Carrying Amount and Cumulative Fair Value Hedging Adjustments on Hedged Liability (Details) - Fair Value Hedging - Debt Securities AFS $ in Thousands	Jun. 30, 2023 USD ($)
Derivative [Line Items]
Amortized Cost	$ 804,658
Hedge Accounting Basis Adjustment	$ (15,289)

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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 399	$ 3,239	$ 1,448	$ 8,756
Customer derivatives and dealer offsets
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	545	445	912	1,214
Bifurcated embedded derivatives and dealer offsets
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(474)	85	(1,007)	198
Mortgage banking derivatives
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	174	2,616	1,401	7,250
Risk participations
Derivative Instruments [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 154	$ 93	$ 142	$ 94

XML

Goodwill and Other Intangible Assets - Carrying Amount (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Goodwill and other intangible assets
Total intangible assets subject to amortization	$ 61,105		$ 28,074
Goodwill	896,718	$ 896,718	751,174	$ 751,174	$ 751,174	$ 452,007
Total goodwill and other intangible assets, net	957,823		779,248
Core deposit intangible
Goodwill and other intangible assets
Intangibles subject to amortization, gross	86,880		46,900
Less: accumulated amortization	(32,665)		(26,112)
Total intangible assets subject to amortization	54,215		20,788
Customer relationship intangible
Goodwill and other intangible assets
Intangibles subject to amortization, gross	8,400		8,400
Less: accumulated amortization	(1,510)		(1,114)
Total intangible assets subject to amortization	$ 6,890		$ 7,286

XML

Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Customer relationship intangible | Progress
Finite-Lived Intangible Assets [Line Items]
Intangible asset acquired	$ 40.0

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 896,718	$ 751,174	$ 751,174	$ 452,007
Acquisitions	0	0	145,544	299,167
Goodwill, ending balance	896,718	751,174	896,718	751,174
Accumulated impairment losses on goodwill	$ 306,000	$ 306,000	$ 306,000	$ 306,000	$ 306,000	$ 306,000	$ 306,000	$ 306,000

XML

Goodwill and Other Intangible Assets - Estimated Aggregate Amortization Expense for Future Periods (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Estimated Aggregate Amortization Expense For Future Periods
Remainder of 2023	$ 6,521
2024	11,791
2025	10,031
2026	8,491
2027	6,950
Thereafter	17,321
Total intangible assets subject to amortization	$ 61,105	$ 28,074

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Preferred Stock (Details) - Preferred Stock - Depositary Shares, 1/1000th Of Preferred Share	1 Months Ended	3 Months Ended	6 Months Ended
	May 31, 2023 USD ($)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 USD ($) shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchase program authorized amount	$ 25,000,000	$ 25,000,000	$ 25,000,000
Stock repurchase conversion ratio	0.001
Shares repurchased (in shares) | shares		10,668	10,668
Repurchase program remaining authorization		$ 24,800,000	$ 24,800,000

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Assets and Liabilities Measured at Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Debt securities available-for-sale	$ 3,359,989	$ 3,614,333
Mortgage loans held for sale	27,104	11,794
U.S. Treasuries
Assets:
Debt securities available-for-sale	333,423	149,352
U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	237,096	250,116
State and political subdivisions
Assets:
Debt securities available-for-sale	161,101	303,748
Corporate bonds
Assets:
Debt securities available-for-sale	196,736	212,452
Asset-backed securities
Assets:
Debt securities available-for-sale	192,960	231,272
Recurring
Assets:
Equity securities with readily determinable fair values	12,183	13,637
Mortgage loans held for sale	27,104	11,794
Deferred compensation plan assets	11,728	11,436
Servicing rights for SBA/USDA loans	6,148	5,188
Residential mortgage servicing rights	37,194	36,559
Derivative financial instruments	58,750	50,636
Total assets	3,513,096	3,743,583
Liabilities:
Deferred compensation plan liability	11,766	11,460
Derivative financial instruments	104,786	99,543
Total liabilities	116,552	111,003
Recurring | U.S. Treasuries
Assets:
Debt securities available-for-sale	333,423	149,352
Recurring | U.S. Government agencies & GSEs
Assets:
Debt securities available-for-sale	237,096	250,116
Recurring | State and political subdivisions
Assets:
Debt securities available-for-sale	161,101	303,748
Recurring | Residential MBS
Assets:
Debt securities available-for-sale	1,620,235	1,795,481
Recurring | Commercial MBS
Assets:
Debt securities available-for-sale	618,438	671,912
Recurring | Corporate bonds
Assets:
Debt securities available-for-sale	196,736	212,452
Recurring | Asset-backed securities
Assets:
Debt securities available-for-sale	192,960	231,272
Recurring | Level 1
Assets:
Equity securities with readily determinable fair values	10,651	12,278
Mortgage loans held for sale	0	0
Deferred compensation plan assets	11,728	11,436
Servicing rights for SBA/USDA loans	0	0
Residential mortgage servicing rights	0	0
Derivative financial instruments	0	0
Total assets	355,802	173,066
Liabilities:
Deferred compensation plan liability	11,766	11,460
Derivative financial instruments	0	0
Total liabilities	11,766	11,460
Recurring | Level 1 | U.S. Treasuries
Assets:
Debt securities available-for-sale	333,423	149,352
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 determinable fair values	1,532	1,359
Mortgage loans held for sale	27,104	11,794
Deferred compensation plan assets	0	0
Servicing rights for SBA/USDA loans	0	0
Residential mortgage servicing rights	0	0
Derivative financial instruments	46,878	39,123
Total assets	3,099,897	3,515,045
Liabilities:
Deferred compensation plan liability	0	0
Derivative financial instruments	92,222	86,703
Total liabilities	92,222	86,703
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	237,096	250,116
Recurring | Level 2 | State and political subdivisions
Assets:
Debt securities available-for-sale	161,101	303,748
Recurring | Level 2 | Residential MBS
Assets:
Debt securities available-for-sale	1,620,235	1,795,481
Recurring | Level 2 | Commercial MBS
Assets:
Debt securities available-for-sale	618,438	671,912
Recurring | Level 2 | Corporate bonds
Assets:
Debt securities available-for-sale	194,553	210,240
Recurring | Level 2 | Asset-backed securities
Assets:
Debt securities available-for-sale	192,960	231,272
Recurring | Level 3
Assets:
Equity securities with readily determinable fair values	0	0
Mortgage loans held for sale	0	0
Deferred compensation plan assets	0	0
Servicing rights for SBA/USDA loans	6,148	5,188
Residential mortgage servicing rights	37,194	36,559
Derivative financial instruments	11,872	11,513
Total assets	57,397	55,472
Liabilities:
Deferred compensation plan liability	0	0
Derivative financial instruments	12,564	12,840
Total liabilities	12,564	12,840
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	2,183	2,212
Recurring | Level 3 | Asset-backed securities
Assets:
Debt securities available-for-sale	$ 0	$ 0

XML

Assets and Liabilities Measured at Fair Value - Reconciliation of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Assets
Assets:
Beginning balance	$ 11,348	$ 7,902	$ 11,513	$ 6,758
Business combinations			0	0
Additions	0	0	0	0
Transfers from Level 3			0	(290)
Sales and settlements	0	0	(11)	0
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	524	2,297	370	3,731
Ending balance	11,872	10,199	11,872	10,199
SBA/USDA loan servicing rights
Assets:
Beginning balance	6,289	6,962	5,188	6,513
Business combinations			95	0
Additions	464	800	924	1,388
Transfers from Level 3			0	0
Sales and settlements	(231)	(408)	(451)	(637)
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	(374)	(1,187)	392	(1,097)
Ending balance	6,148	6,167	6,148	6,167
Residential mortgage servicing rights
Assets:
Beginning balance	36,081	32,641	36,559	25,161
Business combinations			0	0
Additions	(848)	1,723	1,480	3,890
Transfers from Level 3			0	0
Sales and settlements	(496)	(638)	(948)	(1,314)
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	761	1,405	103	7,394
Ending balance	37,194	35,131	37,194	35,131
Corporate Bonds
Assets:
Beginning balance	2,227	2,332	2,212	2,395
Business combinations			0	0
Additions	0	0	0	0
Transfers from Level 3			0	0
Sales and settlements	0	0	0	0
Fair value adjustments included in OCI	(44)	(45)	(29)	(108)
Fair value adjustments included in earnings	0	0	0	0
Ending balance	2,183	2,287	2,183	2,287
Derivative Liabilities
Liabilities:
Beginning balance	11,195	8,531	12,840	5,048
Business combinations			0	0
Additions	167	99	170	99
Transfers from Level 3			0	0
Sales and settlements	0	(1)	0	(1)
Fair value adjustments included in OCI	0	0	0	0
Fair value adjustments included in earnings	1,202	2,166	(446)	5,649
Ending balance	$ 12,564	$ 10,795	$ 12,564	$ 10,795

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Assets and Liabilities Measured at Fair Value - Quantitative Information About Level 3 Fair Value Measurements for Fair Value on a Recurring Basis (Details) - Recurring - Level 3	Jun. 30, 2023	Dec. 31, 2022
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	0.080	0.119
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	0.250
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	0.132	0.175
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	0.004	0.000
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	0.354	0.354
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	0.169	0.164
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	0.115
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	0.295	0.312
Residential mortgage servicing rights | Prepayment rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Residential mortgage servicing rights, measurement input	0.077	0.075
Corporate bonds | Discount rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.066	0.061
Corporate bonds | Discount rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.072	0.064
Corporate bonds | Discount rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Corporate bonds, measurement input	0.069	0.063
Derivative assets - mortgage | Pull through rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, measurement input	0.600	0.265
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	0.894	0.907

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Assets and Liabilities Measured at Fair Value - Loans Held for Sale at Fair Value Under the Fair Value Option (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Mortgage Loans Held for Sale
Outstanding principal balance	$ 26,520		$ 26,520		$ 11,473
Fair value	27,104		27,104		$ 11,794
Mortgage loan gains and other related fees	$ 33	$ 163	$ 264	$ (1,011)

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Assets and Liabilities Measured at Fair Value - Presentation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 31,148	$ 7,808
Mortgage loans held for sale		1,806
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	$ 31,148	7,808
Mortgage loans held for sale		$ 1,806

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Assets and Liabilities Measured at Fair Value - Narrative (Details)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Maximum remaining maturity of financial instruments having no defined maturity	180 days

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Assets and Liabilities Measured at Fair Value - Carrying Amount and Fair Values for Other Financial Instruments that are not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
HTM debt securities	$ 2,132,396	$ 2,191,073
Liabilities:
FHLB advances	0	550,000
Carrying Amount
Assets:
HTM debt securities	2,553,835	2,613,648
Loans and leases, net	17,204,140	15,175,270
Liabilities:
Deposits	22,251,988	19,876,507
FHLB advances		550,000
Long-term debt	324,754	324,663
Fair Value
Assets:
HTM debt securities	2,132,396	2,191,073
Loans and leases, net	16,591,141	14,609,239
Liabilities:
Deposits	22,245,777	19,863,380
FHLB advances		549,913
Long-term debt	304,481	313,380
Fair Value | Level 1
Assets:
HTM debt securities	17,495	17,417
Loans and leases, net	0	0
Liabilities:
Deposits	0	0
FHLB advances		0
Long-term debt	0	0
Fair Value | Level 2
Assets:
HTM debt securities	2,114,901	2,173,656
Loans and leases, net	0	0
Liabilities:
Deposits	22,245,777	19,863,380
FHLB advances		0
Long-term debt	0	0
Fair Value | Level 3
Assets:
HTM debt securities	0	0
Loans and leases, net	16,591,141	14,609,239
Liabilities:
Deposits	0	0
FHLB advances		549,913
Long-term debt	$ 304,481	$ 313,380

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Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan vesting period (in years)	4 years
Plan exercisable period (in years)	10 years
Additional awards remaining available under plan (in shares)	2,510
Income tax benefit related to expense for share-based awards	$ 1,220,000	$ 1,240,000
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	$ 20,200,000
Recognition period for unrecognized compensation expense (in years)	2 years 4 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	$ 4,460,000	4,620,000
Directors | Restricted stock units and performance stock units | Other operating expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 331,000	$ 238,000

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Stock-Based Compensation - Restricted Stock Units and Options Outstanding and Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Options, Shares
Beginning balance, outstanding (in shares) | shares	40,338
Granted (in shares) | shares	643,298
Released / Exercised (in shares) | shares	(164,864)
Cancelled (in shares) | shares	(4,620)
Ending balance, outstanding (in shares) | shares	514,152
Exercisable (in shares) | shares	514,152
Options, Weighted Average Exercise Price
Beginning balance, outstanding (in dollars per share) | $ / shares	$ 11.88
Granted (in dollars per share) | $ / shares	20.91
Released / Exercised (in dollars per shares) | $ / shares	17.96
Cancelled (in dollars per share) | $ / shares	25.97
Ending balance, outstanding (in dollars per share) | $ / shares	21.10
Exercisable (in dollars per share) | $ / shares	$ 21.10
Outstanding, Weighted Average Remaining Term (in years)	5 years 7 months 6 days
Exercisable, Weighted Average Remaining Term (in years)	5 years 7 months 6 days
Released / Exercised during period, Aggregate Intrinsic Value | $	$ 1,584
Outstanding, Aggregate Intrinsic Value | $	2,082
Exercisable, Aggregate Intrinsic Value | $	$ 2,082
Restricted Stock Units
Shares
Outstanding, beginning balance (in shares) | shares	778,686
Granted (in shares) | shares	292,631
Released / Exercised (in shares) | shares	(121,277)
Cancelled (in shares) | shares	(27,980)
Outstanding, ending balance (in shares) | shares	922,060
Vested (in shares) | shares	0
Weighted- Average Grant- Date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 28.28
Granted (in dollars per share) | $ / shares	30.33
Released / Exercised (in dollars per share) | $ / shares	27.18
Cancelled (in dollars per share) | $ / shares	28.51
Outstanding, ending balance (in dollars per share) | $ / shares	29.07
Vested (in dollars per share) | $ / shares	$ 0
Aggregate Intrinsic Value, Released / Exercised | $	$ 3,855
Aggregate Intrinsic Value, Outstanding | $	$ 23,042

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Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains (losses), net	$ 0	$ 46	$ (1,644)	$ (3,688)
Income tax benefit	(18,225)	(19,125)	(36,016)	(31,510)
Investment securities interest revenue	295,775	187,378	575,262	358,437
Long-term debt interest expense	(3,774)	(4,173)	(7,670)	(8,309)
Salaries and employee benefits expense	(76,250)	(69,233)	(154,948)	(140,239)
Other expense	(7,533)	(6,176)	(15,881)	(9,894)
Total before tax	81,513	85,967	161,604	146,371
Net income	63,288	66,842	125,588	114,861
Reclassifications Out of AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(1,041)	(1,518)	(3,992)	(4,494)
Reclassifications Out of AOCI | Realized losses on AFS securities:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains (losses), net	0	46	(1,644)	(3,688)
Income tax benefit	0	(11)	374	979
Net income	0	35	(1,270)	(2,709)
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	604	422	1,324	422
Investment securities interest revenue	(2,518)	(1,769)	(5,486)	(1,769)
Net income	(1,914)	(1,347)	(4,162)	(1,347)
Reclassifications Out of AOCI | Reclassifications related to derivative instruments accounted for as cash flow hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax benefit	(315)	27	(525)	63
Long-term debt interest expense	1,234	(106)	2,056	(247)
Net income	919	(79)	1,531	(184)
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	15	44	31	87
Total before tax	(61)	(171)	(122)	(341)
Net income	(46)	(127)	(91)	(254)
Reclassifications Out of AOCI | Prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits expense	(61)	(93)	(122)	(185)
Reclassifications Out of AOCI | Actuarial losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense	$ 0	$ (78)	$ 0	$ (156)

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Computation of basic and diluted earnings per share
Net income	$ 63,288	$ 66,842	$ 125,588	$ 114,861
Dividends on preferred stock	(1,719)	(1,719)	(3,438)	(3,438)
Earnings allocated to participating securities	(342)	(362)	(680)	(596)
Net income available to common shareholders, basic	61,227	64,761	121,470	110,827
Net income available to common shareholders, diluted	$ 61,227	$ 64,761	$ 121,470	$ 110,827
Weighted average shares outstanding:
Basic (in shares)	115,774	106,610	115,614	106,580
Effect of dilutive securities:
Diluted (in shares)	115,869	106,716	115,795	106,697
Net income per common share:
Basic (in dollars per share)	$ 0.53	$ 0.61	$ 1.05	$ 1.04
Diluted (in dollars per share)	$ 0.53	$ 0.61	$ 1.05	$ 1.04
Stock options
Effect of dilutive securities:
Restricted stock units (in shares)	95	36	166	41
Restricted stock units
Effect of dilutive securities:
Restricted stock units (in shares)	0	70	15	76

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Earnings Per Share - Narrative (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Potentially dilutive instruments outstanding not included in EPS analysis (in shares)	78,412	0

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Regulatory Matters (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital, Minimum	0.045
CET1 capital, Well-Capitalized	0.065
CET1 capital	0.1219	0.1226
Tier 1 capital, Minimum	0.060
Tier 1 capital, Well-Capitalized	0.080
Tier 1 capital	0.1269	0.1281
Total capital, Minimum	0.080
Total capital, Well-Capitalized	0.100
Total capital	0.1457	0.1479
Leverage ratio, Minimum	0.040
Leverage ratio, Well-Capitalized	0.050
Leverage ratio	0.0979	0.0969
CET1 capital	$ 2,366,637	$ 2,164,211
Tier 1 capital	2,462,802	2,260,633
Total capital	2,827,580	2,610,216
Risk-weighted assets	19,409,980	17,648,573
Average total assets for the leverage ratio	$ 25,160,884	$ 23,322,018
United Community Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital	0.1242	0.1283
Tier 1 capital	0.1242	0.1283
Total capital	0.1339	0.1370
Leverage ratio	0.0956	0.0969
CET1 capital	$ 2,400,649	$ 2,255,337
Tier 1 capital	2,400,649	2,255,337
Total capital	2,589,591	2,408,895
Risk-weighted assets	19,335,994	17,583,347
Average total assets for the leverage ratio	$ 25,120,784	$ 23,285,253

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Commitments and Contingencies - Contractual Amount of Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commitments to extend credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments whose contract amounts represent credit risk:	$ 4,755,317	$ 4,683,790
Letters of credit
Financial instruments whose contract amounts represent credit risk:
Financial instruments whose contract amounts represent credit risk:	$ 55,652	$ 46,896

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Commitment and Contingencies - Tax Credit and Certain Equity Method Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fintech funds and certain other equity method investments:
Other Commitments [Line Items]
Amount of future funding commitments	$ 26,568	$ 23,690
Other assets | Investments in LIHTC:
Other Commitments [Line Items]
Investments in LIHTC: Carrying amount	52,112	50,054
Other assets | Renewable energy investments:
Other Commitments [Line Items]
Carrying amount	39,737	19,617
Other assets | Fintech funds and certain other equity method investments:
Other Commitments [Line Items]
Carrying amount	32,722	27,569
Other liabilities | Investments in LIHTC:
Other Commitments [Line Items]
Investments in LIHTC: Amount of future funding commitments included in carrying amount	15,292	18,090
Other liabilities | Renewable energy investments:
Other Commitments [Line Items]
Amount of future funding commitments	20,360	18,781
Other liabilities | Fintech funds and certain other equity method investments:
Other Commitments [Line Items]
Amount of future funding commitments	$ 470	$ 470

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Subsequent Events (Details) $ in Thousands			3 Months Ended	6 Months Ended
	Aug. 03, 2023 USD ($) shares	Jul. 01, 2023 USD ($) office shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 USD ($) shares	Dec. 31, 2022 USD ($)
Subsequent Event [Line Items]
Total assets			$ 26,120,197	$ 26,120,197	$ 24,008,884
Total loans			17,394,845	17,394,845	15,334,627
Total deposits			22,251,988	22,251,988	$ 19,876,507
Stock repurchased value			$ 222	$ 222
Preferred Shares | Depositary Shares, 1/1000th Of Preferred Share
Subsequent Event [Line Items]
Shares repurchased (in shares) | shares			10,668	10,668
Repurchase program remaining authorization			$ 24,800	$ 24,800
Subsequent event | Preferred Shares | Depositary Shares, 1/1000th Of Preferred Share
Subsequent Event [Line Items]
Shares repurchased (in shares) | shares	167,322
Stock repurchased value	$ 3,450
Repurchase program remaining authorization	$ 21,300
First Miami Bancorp, Inc
Subsequent Event [Line Items]
Total assets			992,000	992,000
Total loans			618,000	618,000
Total deposits			836,000	836,000
Assets under management			$ 308,000	$ 308,000
First Miami Bancorp, Inc | Subsequent event
Subsequent Event [Line Items]
Number of banking branches | office		3
Issuance of stock (in shares) | shares		3,500,000
Common stock value		$ 87,700