Executive Summary

Q2 2021 delivered strong profitability: net income $70.3M and diluted EPS $0.78, with ROA 1.46% and ROCE 14.1% driven by an allowance release ($13.6M) and robust core deposit growth; pre-tax, pre-provision income was $78.7M .
Core loan growth (ex-PPP) was 5% annualized despite PPP forgiveness ($411M), and core transaction deposits grew $432M (14% annualized); deposit costs fell 5 bps to 0.09% while NIM decreased 3 bps QoQ due to asset mix .
Strategic catalysts: closed FinTrust (July 6), announced acquisitions of Aquesta (expected +$0.08 EPS accretion in 2022) and Reliant (expected +$0.15 in 2022 and +$0.22 in 2023), positioning for footprint expansion and revenue synergies .
Management pre-announced results “above consensus” with expected Q2 diluted EPS of $0.77–$0.80 and a negative provision of $13–$14M, framing a beat narrative into the call and merger announcement with Reliant .

What Went Well and What Went Wrong

“This has been an outstanding quarter for United… Core loan growth, excluding PPP loans, was solid… Credit results were excellent” — CEO Lynn Harton, highlighting execution and momentum in core businesses .
Strong deposit franchise performance: core transaction deposits +$432M (14% annualized); deposit cost fell to 0.09% enhancing funding economics .
Strategic acceleration: closed FinTrust, announced Aquesta and Reliant; quantified EPS accretion (+$0.08 in 2022 for Aquesta; +$0.15 in 2022 and +$0.22 in 2023 for Reliant), signaling confidence in M&A value creation .

Reported loan balances declined $288M due to $411M PPP forgiveness, muting headline loan growth despite 5% annualized growth on a core basis .
Net interest margin compressed 3 bps QoQ, reflecting earning asset mix changes; modest margin headwind despite strong deposit cost control .
Earnings benefited from an allowance release ($13.6M), which enhances results but is non-recurring and could normalize with credit cycles, tempering sustainability optics for EPS .

Metric	Q4 2020	Q1 2021	Q2 2021
Diluted EPS ($)	$0.66	$0.82	$0.78
Net Income ($USD Millions)	$59.5	$73.7	$70.3
ROA (%)	1.30%	—	1.46%
ROCE (%)	12.36%	—	14.1%
Pre-Tax, Pre-Provision Income ($USD Millions)	$80.3	—	$78.7
Δ NIM vs prior quarter (bps)	—	—	-3 bps

KPIs and operational drivers:

KPI	Q4 2020	Q1 2021	Q2 2021
PPP Loan Forgiveness ($USD Millions)	—	—	$411
Core Loan Growth (annualized, ex-PPP)	—	—	5%
Core Transaction Deposit Growth ($USD Millions)	—	—	$432
Cost of Deposits (%)	—	—	0.09%
Allowance Release ($USD Millions)	—	—	$13.6
Loan Production ($USD Billions)	—	—	$1.3
Mortgage Closings ($USD Millions)	—	—	$680

Estimate comparison (EPS):

Metric	Q2 2021 Actual	Q2 2021 Consensus	Beat/Miss
Diluted EPS ($)	$0.78	Unavailable via S&P Global (*)	N/A

Disclaimer: (*) S&P Global consensus data was unavailable for UCBI due to CIQ mapping constraints; Values retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
EPS Accretion from Aquesta	FY 2022	—	+$0.08 EPS accretion in 2022	Initiated
EPS Accretion from Reliant	FY 2022	—	+$0.15 EPS accretion in 2022	Initiated
EPS Accretion from Reliant	FY 2023	—	+$0.22 EPS accretion in 2023	Initiated
Provision (credit) directional	Q2 2021	—	Management pre-announced negative provision $13–$14M	Initiated

Note: No formal revenue/OpEx/tax-rate guidance disclosed in Q2 2021 materials; guidance focused on M&A accretion.

Topic	Previous Mentions (Q4 2020)	Previous Mentions (Q1 2021)	Current Period (Q2 2021)	Trend
Credit provisioning	Solid profitability; focus on core growth; EPS $0.66; PTPP $80.3M	Record net income $73.7M; EPS $0.82 (credit normalization backdrop)	Allowance release $13.6M; negative provision communicated ahead of call	Improving credit outlook
Net interest margin & deposit costs	—	—	NIM -3 bps QoQ; deposit cost 0.09% (-5 bps), reflecting funding strength	Slight margin headwind, funding tailwind
PPP impact on loans	—	—	PPP forgiveness ($411M) drove headline loan decline despite 5% core growth (annualized)	Transition from PPP, normalization
M&A strategy	—	—	Closed FinTrust; announced Aquesta & Reliant; discussed on earnings call transcript materials	Accelerating footprint expansion
Mortgage & fee income	—	—	Mortgage closings $680M; loan production $1.3B	Strong activity

“This has been an outstanding quarter for United… Core loan growth, excluding PPP loans, was solid and we continue to be optimistic… Core deposit growth remains very strong. Credit results were excellent, as well.” — Lynn Harton, Chairman & CEO .
Strategic focus: closed FinTrust, announced entry into Charlotte and Nashville via acquisitions (Aquesta and Reliant) with quantified EPS accretion targets, reinforcing growth narrative .
Conference call transcript materials reference discussion of proposed mergers alongside quarterly results, indicating emphasis on M&A integration and accretion .

Pre-announcement around negative provision ($13–$14M) and expected EPS in the $0.77–$0.80 range framed discussions of credit normalization and earnings quality on the call .
M&A accretion and market expansion (Charlotte, Nashville) were central themes, with quantified EPS accretion for Aquesta and Reliant guiding investor expectations .
Funding and margin dynamics: deposit cost discipline (0.09%) vs modest NIM compression (-3 bps) discussed as a near-term mix effect .

Q2 2021: S&P Global EPS and revenue consensus were unavailable due to a CIQ mapping constraint for ticker UCBI; therefore, formal beat/miss vs S&P Global consensus cannot be calculated (*). Values retrieved from S&P Global.
Management indicated expectations to report “above consensus” into the Reliant merger announcement and pre-release, with UCBI implying $0.77–$0.80 diluted EPS, which aligned with actual EPS of $0.78 .

Earnings quality: headline EPS ($0.78) was boosted by a $13.6M allowance release; watch for normalization of provision trends in 2H21 .
Core momentum: strong core deposit growth and low funding costs (0.09%) provide durable support to NII even as NIM faces mix-related pressure (-3 bps QoQ) .
Loan optics: PPP forgiveness ($411M) masks underlying core loan growth (5% annualized); monitor ex-PPP growth as a truer trajectory of earning assets .
M&A catalysts: closed FinTrust and announced Aquesta/Reliant with quantified accretion (+$0.08 in 2022; +$0.15 in 2022 and +$0.22 in 2023); integration execution and cross-sell will be key drivers for the multiple .
Trading setup: the pre-announced “above consensus” positioning plus quantified accretion likely supported near-term sentiment; any signs of sustained core loan growth and stable credit could be incremental positives .
Risk checks: watch margin trajectory given asset mix, provision normalization post-release, and integration/timing risks around announced deals .
Operational KPIs: continued strength in mortgage closings ($680M) and loan production ($1.3B) underline demand; monitor how volumes translate to fee resilience as rates and housing cycle evolve .

Additional Q2 2021 materials and prior-quarter context: