GREENVILLE, S.C., Jan. 22, 2025 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the fourth quarter of 2024 of $75.8 million and pre-tax, pre-provision income of $108 million. Diluted earnings per share of $0.61 for the quarter represented an increase of $0.50 from the fourth quarter a year ago and an increase of $0.23 from the third quarter of 2024. As previously reported, the fourth quarter of 2023 included a loss from restructuring our investment securities portfolio and the third quarter of 2024 included the loss from the sale of manufactured housing loans. For the full year of 2024, net income was $252 million and pre-tax, pre-provision income was $374 million, compared with $188 million and $322 million, respectively, for 2023. Diluted earnings per share of $2.04 for 2024 were up $0.50 from $1.54 in 2023.
On an operating basis, United's diluted earnings per share of $0.63 were up 19% from the year-ago quarter and up 11% from the third quarter of 2024. The primary drivers of the increased earnings per share year-over-year and for the third quarter were higher net interest income, higher noninterest income and a lower provision for credit losses, partly offset by a modest year-over-year increase in noninterest expense. For the full year of 2024, diluted operating earnings per share were $2.30, an increase of $0.19, or 9%, from the $2.11 reported in 2023.
United's return on assets was 1.06%, or 1.08% on an operating basis. Return on common equity was 8.4% and return on tangible common equity on an operating basis was 12.1%. On a pre-tax, pre-provision basis, operating return on assets was 1.55% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.97%, up four basis points from the third quarter of 2024.
Chairman and CEO Lynn Harton stated, "We are excited to report strong fourth quarter results. Loan growth returned to historical levels with loans increasing $212 million, or 5% annualized. We funded the new loans with customer deposits, which grew $213 million from third quarter. This growth allowed us to increase net interest income while experiencing some minor expected net interest margin compression. Credit quality remained stable with net charge offs dropping to 0.21% of average loans, the lowest level in two years, resulting in a lower provision for credit losses. Expenses were flat with the third quarter and core noninterest income increased modestly. On the strategic front, in December we announced an agreement to acquire American National Bank headquartered in Oakland Park, Florida, which will expand our presence in this fast-growing part of South Florida. I am excited to welcome Ginger Martin, American National Bank's President and CEO, and her team of accomplished bankers to United."
Harton continued, "These fourth quarter results reflect the efforts of our exceptional team, which I am very proud to be a part of. We ended 2024 with strong capital, ample liquidity, and momentum as we enter 2025."
United's net interest margin decreased seven basis points to 3.26% from the third quarter. The average yield on interest-earning assets was down 22 basis points to 5.33%, while the cost of interest-bearing liabilities decreased 23 basis points, leading to a one basis point increase in the net interest spread. The seven-basis point reduction in net interest margin reflects the impact of funding a portion of our balance sheet with noninterest bearing deposits that are not sensitive to changes in interest rates. Also contributing to the reduction in the net interest margin was a seasonal increase in public funds deposits and the sale of our manufactured housing loans in the third quarter.
Net charge-offs were $9.5 million, or 0.21% of average loans, during the quarter, down 31 basis points from the third quarter of 2024 which included transaction-related losses resulting from the sale of our manufactured housing portfolio. Nonperforming assets were 42 basis points relative to total assets, unchanged from the third quarter.
Harton concluded, "In 2025, we celebrate United's seventy-fifth anniversary. We are proud of this milestone, and we are grateful for the trust and confidence our customers have placed in us for so many years. We are entering 2025 in a position of strength as we continue to pursue our goal of being a legendary bank to our customers, employees, and shareholders."
Fourth Quarter 2024 Financial Highlights:
- Net income of $75.8 million and pre-tax, pre-provision income of $108 million
- EPS up $0.50 compared to fourth quarter 2023 on a GAAP basis and up $0.10, or 19%, on an operating basis; compared to third quarter 2024, EPS up $0.23 on a GAAP basis and up $0.06, or 11%, on an operating basis
- Return on assets of 1.06%, or 1.08% on an operating basis
- Pre-tax, pre-provision return on assets of 1.55% on an operating basis
- Return on common equity of 8.4%
- Return on tangible common equity of 12.1% on an operating basis
- Provision for credit losses was $11.4 million; allowance for credit losses coverage remained stable at 1.20% of total loans
- Net charge-offs of $9.5 million, or 21 basis points as a percent of average loans, benefitting from the absence of the manufactured housing portfolio
- Nonperforming assets of 0.42% of total assets, unchanged from September 30, 2024
- Loan production of $1.4 billion led to loan growth of $212 million, up 5% annualized, from third quarter
- Customer deposits were up $213 million from the third quarter, with most of the growth in NOW and money market deposits
- Net interest margin of 3.26% decreased by seven basis points from the third quarter, partly reflecting the sale of our manufactured housing portfolio in the third quarter and changing composition of our earning assets and interest-bearing liabilities
- Mortgage closings of $246 million compared to $204 million a year ago; mortgage rate locks of $285 million compared to $223 million a year ago
- Noninterest income was up $32.4 million on a linked quarter basis mostly due to the $27.2 million loss from the sale of manufactured housing loans in the third quarter. The remaining increase was primarily driven by the mark on our mortgage servicing rights asset.
- Noninterest expenses remained relatively flat compared to the third quarter on both a GAAP basis and operating basis
- Efficiency ratio of 56.1%, or 55.2% on an operating basis
- Maintained robust capital ratios with preliminary Common Equity Tier 1 increasing to 13.2% and opportunistically redeemed $60 million of subordinated debentures, which lowered total risk-based capital ratio by approximately 30 basis points from the third quarter
- Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year
2024 Financial Highlights:
- Net income of $252 million and pre-tax, pre-provision income of $374 million
- EPS up $0.50 compared to 2023 on a GAAP basis and up $0.19, or 9%, on an operating basis
- Return on assets of 0.90%, or 1.02% on an operating basis
- Pre-tax, pre-provision return on assets of 1.49% on an operating basis
- Return on common equity of 7.1%
- Return on tangible common equity of 11.4% on an operating basis
Conference Call
United will hold a conference call on Wednesday, January 22 at 9:00 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10195478/fe2fad701a. Those without internet access or unable to pre-register may dial in by calling 1-844-481-1970. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting "Events and Presentations" under "News and Events" within the Investor Relations section of the company's website, ucbi.com.
| UNITED COMMUNITY BANKS, INC. Selected Financial Information (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | Fourth Quarter 2024- 2023 Change | For the Twelve Months Ended December 31, | YTD 2024- 2023 Change | ||||||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2024 | 2023 | ||||||||||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 344,962 | $ | 349,086 | $ | 346,965 | $ | 336,728 | $ | 338,698 | $ | 1,377,741 | $ | 1,237,107 | ||||||||||||||||||||
| Interest expense | 134,629 | 139,900 | 138,265 | 137,579 | 135,245 | 550,373 | 419,342 | |||||||||||||||||||||||||||
| Net interest revenue | 210,333 | 209,186 | 208,700 | 199,149 | 203,453 | 3 | % | 827,368 | 817,765 | 1 | % | |||||||||||||||||||||||
| Provision for credit losses | 11,389 | 14,428 | 12,235 | 12,899 | 14,626 | (22 | ) | 50,951 | 89,430 | (43 | ) | |||||||||||||||||||||||
| Noninterest income | 40,522 | 8,091 | 36,556 | 39,587 | (23,090 | ) | 124,756 | 75,483 | 65 | |||||||||||||||||||||||||
| Total revenue | 239,466 | 202,849 | 233,021 | 225,837 | 165,737 | 44 | 901,173 | 803,818 | 12 | |||||||||||||||||||||||||
| Noninterest expenses | 143,056 | 143,065 | 147,044 | 145,002 | 154,587 | (7 | ) | 578,167 | 571,273 | 1 | ||||||||||||||||||||||||
| Income before income tax expense | 96,410 | 59,784 | 85,977 | 80,835 | 11,150 | 323,006 | 232,545 | |||||||||||||||||||||||||||
| Income tax (benefit) expense | 20,606 | 12,437 | 19,362 | 18,204 | (2,940 | ) | 70,609 | 45,001 | ||||||||||||||||||||||||||
| Net income | 75,804 | 47,347 | 66,615 | 62,631 | 14,090 | 438 | 252,397 | 187,544 | 35 | |||||||||||||||||||||||||
| Non-operating items | 2,203 | 29,385 | 6,493 | 2,187 | 67,450 | 40,268 | 88,894 | |||||||||||||||||||||||||||
| Income tax benefit of non-operating items | (471 | ) | (6,276 | ) | (1,462 | ) | (493 | ) | (16,714 | ) | (8,702 | ) | (21,489 | ) | ||||||||||||||||||||
| Net income - operating (1) | $ | 77,536 | $ | 70,456 | $ | 71,646 | $ | 64,325 | $ | 64,826 | 20 | $ | 283,963 | $ | 254,949 | 11 | ||||||||||||||||||
| Pre-tax pre-provision income (5) | $ | 107,799 | $ | 74,212 | $ | 98,212 | $ | 93,734 | $ | 25,776 | 318 | $ | 373,957 | $ | 321,975 | 16 | ||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||||||||
| Diluted net income - GAAP | $ | 0.61 | $ | 0.38 | $ | 0.54 | $ | 0.51 | $ | 0.11 | 455 | $ | 2.04 | $ | 1.54 | 32 | ||||||||||||||||||
| Diluted net income - operating (1) | 0.63 | 0.57 | 0.58 | 0.52 | 0.53 | 19 | 2.30 | 2.11 | 9 | |||||||||||||||||||||||||
| Common stock cash dividends declared | 0.24 | 0.24 | 0.23 | 0.23 | 0.23 | 4 | 0.94 | 0.92 | 2 | |||||||||||||||||||||||||
| Book value | 27.87 | 27.68 | 27.18 | 26.83 | 26.52 | 5 | 27.87 | 26.52 | 5 | |||||||||||||||||||||||||
| Tangible book value (3) | 20.00 | 19.66 | 19.13 | 18.71 | 18.39 | 9 | 20.00 | 18.39 | 9 | |||||||||||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||||||||
| Return on common equity - GAAP (2)(4) | 8.40 | % | 5.20 | % | 7.53 | % | 7.14 | % | 1.44 | % | 7.07 | % | 5.34 | % | ||||||||||||||||||||
| Return on common equity - operating (1)(2)(4) | 8.60 | 7.82 | 8.12 | 7.34 | 7.27 | 7.97 | 7.33 | |||||||||||||||||||||||||||
| Return on tangible common equity - operating (1)(2)(3)(4) | 12.12 | 11.17 | 11.68 | 10.68 | 10.58 | 11.42 | 10.63 | |||||||||||||||||||||||||||
| Return on assets - GAAP (4) | 1.06 | 0.67 | 0.97 | 0.90 | 0.18 | 0.90 | 0.68 | |||||||||||||||||||||||||||
| Return on assets - operating (1)(4) | 1.08 | 1.01 | 1.04 | 0.93 | 0.92 | 1.02 | 0.94 | |||||||||||||||||||||||||||
| Return on assets -pre-tax pre-provision, excluding non-operating items (1)(4)(5) | 1.55 | 1.50 | 1.54 | 1.40 | 1.33 | 1.49 | 1.53 | |||||||||||||||||||||||||||
| Net interest margin (fully taxable equivalent) (4) | 3.26 | 3.33 | 3.37 | 3.20 | 3.19 | 3.29 | 3.35 | |||||||||||||||||||||||||||
| Efficiency ratio - GAAP | 56.05 | 65.51 | 59.70 | 60.47 | 66.33 | 60.24 | 60.09 | |||||||||||||||||||||||||||
| Efficiency ratio - operating (1) | 55.18 | 57.37 | 57.06 | 59.15 | 59.57 | 57.15 | 56.17 | |||||||||||||||||||||||||||
| Equity to total assets | 12.38 | 12.45 | 12.35 | 12.06 | 11.95 | 12.38 | 11.95 | |||||||||||||||||||||||||||
| Tangible common equity to tangible assets (3) | 8.97 | 8.93 | 8.78 | 8.49 | 8.36 | 8.97 | 8.36 | |||||||||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||||||||
| Nonperforming assets ("NPAs") | $ | 115,635 | $ | 114,960 | $ | 116,722 | $ | 107,230 | $ | 92,877 | 25 | $ | 115,635 | $ | 92,877 | 25 | ||||||||||||||||||
| Allowance for credit losses - loans | 206,998 | 205,290 | 213,022 | 210,934 | 208,071 | (1 | ) | 206,998 | 208,071 | (1 | ) | |||||||||||||||||||||||
| Allowance for credit losses - total | 217,389 | 215,517 | 224,740 | 224,119 | 224,128 | (3 | ) | 217,389 | 224,128 | (3 | ) | |||||||||||||||||||||||
| Net charge-offs (recoveries) | 9,517 | 23,651 | 11,614 | 12,908 | 10,122 | 57,690 | 52,243 | |||||||||||||||||||||||||||
| Allowance for credit losses - loans to loans | 1.14 | % | 1.14 | % | 1.17 | % | 1.15 | % | 1.14 | % | 1.14 | % | 1.14 | % | ||||||||||||||||||||
| Allowance for credit losses - total to loans | 1.20 | 1.20 | 1.23 | 1.22 | 1.22 | 1.20 | 1.22 | |||||||||||||||||||||||||||
| Net charge-offs to average loans (4) | 0.21 | 0.52 | 0.26 | 0.28 | 0.22 | 0.32 | 0.30 | |||||||||||||||||||||||||||
| NPAs to total assets | 0.42 | 0.42 | 0.43 | 0.39 | 0.34 | 0.42 | 0.34 | |||||||||||||||||||||||||||
| AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||
| Loans | $ | 18,176 | $ | 17,964 | $ | 18,211 | $ | 18,375 | $ | 18,319 | (1 | ) | $ | 18,176 | $ | 18,319 | (1 | ) | ||||||||||||||||
| Investment securities | 6,804 | 6,425 | 6,038 | 5,859 | 5,822 | 17 | 6,804 | 5,822 | 17 | |||||||||||||||||||||||||
| Total assets | 27,720 | 27,373 | 27,057 | 27,365 | 27,297 | 2 | 27,720 | 27,297 | 2 | |||||||||||||||||||||||||
| Deposits | 23,461 | 23,253 | 22,982 | 23,332 | 23,311 | 1 | 23,461 | 23,311 | 1 | |||||||||||||||||||||||||
| Shareholders' equity | 3,432 | 3,407 | 3,343 | 3,300 | 3,262 | 5 | 3,432 | 3,262 | 5 | |||||||||||||||||||||||||
| Common shares outstanding (thousands) | 119,364 | 119,283 | 119,175 | 119,137 | 119,010 | - | 119,364 | 119,010 | - | |||||||||||||||||||||||||
(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page.
(2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss).
(3) Excludes effect of acquisition related intangibles and associated amortization.
(4) Annualized.
(5) Excludes income tax expense and provision for credit losses.
| UNITED COMMUNITY BANKS, INC. Non-GAAP Performance Measures Reconciliation Selected Financial Information (in thousands, except per share data) | ||||||||||||||||||||||||||||
| 2024 | 2023 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2024 | 2023 | ||||||||||||||||||||||
| Noninterest income reconciliation | ||||||||||||||||||||||||||||
| Noninterest income (GAAP) | $ | 40,522 | $ | 8,091 | $ | 36,556 | $ | 39,587 | $ | (23,090 | ) | $ | 124,756 | $ | 75,483 | |||||||||||||
| Loss on sale of manufactured housing loans | - | 27,209 | - | - | - | 27,209 | - | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (2,400 | ) | - | (2,400 | ) | - | |||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 51,689 | - | 51,689 | |||||||||||||||||||||
| Noninterest income - operating | $ | 40,522 | $ | 35,300 | $ | 36,556 | $ | 37,187 | $ | 28,599 | $ | 149,565 | $ | 127,172 | ||||||||||||||
| Noninterest expense reconciliation | ||||||||||||||||||||||||||||
| Noninterest expenses (GAAP) | $ | 143,056 | $ | 143,065 | $ | 147,044 | $ | 145,002 | $ | 154,587 | $ | 578,167 | $ | 571,273 | ||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | (5,100 | ) | - | - | (5,100 | ) | - | |||||||||||||||||||
| FDIC special assessment | - | - | 764 | (2,500 | ) | (9,995 | ) | (1,736 | ) | (9,995 | ) | |||||||||||||||||
| Merger-related and other charges | (2,203 | ) | (2,176 | ) | (2,157 | ) | (2,087 | ) | (5,766 | ) | (8,623 | ) | (27,210 | ) | ||||||||||||||
| Expenses - operating | $ | 140,853 | $ | 140,889 | $ | 140,551 | $ | 140,415 | $ | 138,826 | $ | 562,708 | $ | 534,068 | ||||||||||||||
| Net income to operating income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 75,804 | $ | 47,347 | $ | 66,615 | $ | 62,631 | $ | 14,090 | $ | 252,397 | $ | 187,544 | ||||||||||||||
| Loss on sale of manufactured housing loans | - | 27,209 | - | - | - | 27,209 | - | |||||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 51,689 | - | 51,689 | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (2,400 | ) | - | (2,400 | ) | - | |||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | 5,100 | - | - | 5,100 | - | |||||||||||||||||||||
| FDIC special assessment | - | - | (764 | ) | 2,500 | 9,995 | 1,736 | 9,995 | ||||||||||||||||||||
| Merger-related and other charges | 2,203 | 2,176 | 2,157 | 2,087 | 5,766 | 8,623 | 27,210 | |||||||||||||||||||||
| Income tax benefit of non-operating items | (471 | ) | (6,276 | ) | (1,462 | ) | (493 | ) | (16,714 | ) | (8,702 | ) | (21,489 | ) | ||||||||||||||
| Net income - operating | $ | 77,536 | $ | 70,456 | $ | 71,646 | $ | 64,325 | $ | 64,826 | $ | 283,963 | $ | 254,949 | ||||||||||||||
| Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 75,804 | $ | 47,347 | $ | 66,615 | $ | 62,631 | $ | 14,090 | $ | 252,397 | $ | 187,544 | ||||||||||||||
| Income tax expense (benefit) | 20,606 | 12,437 | 19,362 | 18,204 | (2,940 | ) | 70,609 | 45,001 | ||||||||||||||||||||
| Provision for credit losses | 11,389 | 14,428 | 12,235 | 12,899 | 14,626 | 50,951 | 89,430 | |||||||||||||||||||||
| Pre-tax pre-provision income | $ | 107,799 | $ | 74,212 | $ | 98,212 | $ | 93,734 | $ | 25,776 | $ | 373,957 | $ | 321,975 | ||||||||||||||
| Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | 0.61 | $ | 0.38 | $ | 0.54 | $ | 0.51 | $ | 0.11 | $ | 2.04 | $ | 1.54 | ||||||||||||||
| Loss on sale of manufactured housing loans | - | 0.18 | - | - | - | 0.18 | - | |||||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 0.32 | - | 0.33 | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (0.02 | ) | - | (0.02 | ) | - | |||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | 0.03 | - | - | 0.03 | - | |||||||||||||||||||||
| FDIC special assessment | - | - | - | 0.02 | 0.06 | 0.01 | 0.06 | |||||||||||||||||||||
| Merger-related and other charges | 0.02 | 0.01 | 0.01 | 0.01 | 0.04 | 0.06 | 0.18 | |||||||||||||||||||||
| Diluted income per common share - operating | $ | 0.63 | $ | 0.57 | $ | 0.58 | $ | 0.52 | $ | 0.53 | $ | 2.30 | $ | 2.11 | ||||||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 27.87 | $ | 27.68 | $ | 27.18 | $ | 26.83 | $ | 26.52 | $ | 27.87 | $ | 26.52 | ||||||||||||||
| Effect of goodwill and other intangibles | (7.87 | ) | (8.02 | ) | (8.05 | ) | (8.12 | ) | (8.13 | ) | (7.87 | ) | (8.13 | ) | ||||||||||||||
| Tangible book value per common share | $ | 20.00 | $ | 19.66 | $ | 19.13 | $ | 18.71 | $ | 18.39 | $ | 20.00 | $ | 18.39 | ||||||||||||||
| Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
| Return on common equity (GAAP) | 8.40 | % | 5.20 | % | 7.53 | % | 7.14 | % | 1.44 | % | 7.07 | % | 5.34 | % | ||||||||||||||
| Loss on sale of manufactured housing loans | - | 2.43 | - | - | - | 0.61 | - | |||||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 4.47 | - | 1.15 | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (0.22 | ) | - | (0.05 | ) | - | |||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | 0.46 | - | - | 0.11 | - | |||||||||||||||||||||
| FDIC special assessment | - | - | (0.07 | ) | 0.23 | 0.86 | 0.04 | 0.22 | ||||||||||||||||||||
| Merger-related and other charges | 0.20 | 0.19 | 0.20 | 0.19 | 0.50 | 0.19 | 0.62 | |||||||||||||||||||||
| Return on common equity - operating | 8.60 | 7.82 | 8.12 | 7.34 | 7.27 | 7.97 | 7.33 | |||||||||||||||||||||
| Effect of goodwill and other intangibles | 3.52 | 3.35 | 3.56 | 3.34 | 3.31 | 3.45 | 3.30 | |||||||||||||||||||||
| Return on tangible common equity - operating | 12.12 | % | 11.17 | % | 11.68 | % | 10.68 | % | 10.58 | % | 11.42 | % | 10.63 | % | ||||||||||||||
| Return on assets reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 1.06 | % | 0.67 | % | 0.97 | % | 0.90 | % | 0.18 | % | 0.90 | % | 0.68 | % | ||||||||||||||
| Loss on sale of manufactured housing loans | - | 0.31 | - | - | - | 0.08 | - | |||||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 0.57 | - | 0.15 | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (0.03 | ) | - | (0.01 | ) | - | |||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | 0.06 | - | - | 0.02 | - | |||||||||||||||||||||
| FDIC special assessment | - | - | (0.01 | ) | 0.03 | 0.11 | 0.01 | 0.03 | ||||||||||||||||||||
| Merger-related and other charges | 0.02 | 0.03 | 0.02 | 0.03 | 0.06 | 0.02 | 0.08 | |||||||||||||||||||||
| Return on assets - operating | 1.08 | % | 1.01 | % | 1.04 | % | 0.93 | % | 0.92 | % | 1.02 | % | 0.94 | % | ||||||||||||||
| Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||||||||||
| Return on assets (GAAP) | 1.06 | % | 0.67 | % | 0.97 | % | 0.90 | % | 0.18 | % | 0.90 | % | 0.68 | % | ||||||||||||||
| Income tax expense (benefit) | 0.30 | 0.19 | 0.29 | 0.27 | (0.04 | ) | 0.26 | 0.17 | ||||||||||||||||||||
| Provision for credit losses | 0.16 | 0.21 | 0.18 | 0.19 | 0.21 | 0.19 | 0.34 | |||||||||||||||||||||
| Loss on sale of manufactured housing loans | - | 0.40 | - | - | - | 0.09 | - | |||||||||||||||||||||
| Bond portfolio restructuring loss | - | - | - | - | 0.75 | - | 0.20 | |||||||||||||||||||||
| Gain on lease termination | - | - | - | (0.04 | ) | - | (0.01 | ) | - | |||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | 0.08 | - | - | 0.02 | - | |||||||||||||||||||||
| FDIC special assessment | - | - | (0.01 | ) | 0.04 | 0.15 | 0.01 | 0.04 | ||||||||||||||||||||
| Merger-related and other charges | 0.03 | 0.03 | 0.03 | 0.04 | 0.08 | 0.03 | 0.10 | |||||||||||||||||||||
| Return on assets - pre-tax pre-provision, excluding non-operating items | 1.55 | % | 1.50 | % | 1.54 | % | 1.40 | % | 1.33 | % | 1.49 | % | 1.53 | % | ||||||||||||||
| Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 56.05 | % | 65.51 | % | 59.70 | % | 60.47 | % | 66.33 | % | 60.24 | % | 60.09 | % | ||||||||||||||
| Loss on sale of manufactured housing loans | - | (7.15 | ) | - | - | - | (1.63 | ) | - | |||||||||||||||||||
| Gain on lease termination | - | - | - | 0.60 | - | 0.15 | - | |||||||||||||||||||||
| Loss on FinTrust (goodwill impairment) | - | - | (2.07 | ) | - | - | (0.53 | ) | - | |||||||||||||||||||
| FDIC special assessment | - | - | 0.31 | (1.05 | ) | (4.29 | ) | (0.18 | ) | (1.05 | ) | |||||||||||||||||
| Merger-related and other charges | (0.87 | ) | (0.99 | ) | (0.88 | ) | (0.87 | ) | (2.47 | ) | (0.90 | ) | (2.87 | ) | ||||||||||||||
| Efficiency ratio - operating | 55.18 | % | 57.37 | % | 57.06 | % | 59.15 | % | 59.57 | % | 57.15 | % | 56.17 | % | ||||||||||||||
| Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||||||||
| Equity to total assets (GAAP) | 12.38 | % | 12.45 | % | 12.35 | % | 12.06 | % | 11.95 | % | 12.38 | % | 11.95 | % | ||||||||||||||
| Effect of goodwill and other intangibles | (3.09 | ) | (3.20 | ) | (3.24 | ) | (3.25 | ) | (3.27 | ) | (3.09 | ) | (3.27 | ) | ||||||||||||||
| Effect of preferred equity | (0.32 | ) | (0.32 | ) | (0.33 | ) | (0.32 | ) | (0.32 | ) | (0.32 | ) | (0.32 | ) | ||||||||||||||
| Tangible common equity to tangible assets | 8.97 | % | 8.93 | % | 8.78 | % | 8.49 | % | 8.36 | % | 8.97 | % | 8.36 | % | ||||||||||||||
| UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||||
| Loan Portfolio Composition at Period-End | |||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| 2024 | 2023 | Linked Quarter Change | Year over Year Change | ||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||||||||
| LOANS BY CATEGORY | |||||||||||||||||||||||
| Owner occupied commercial RE | $ | 3,398 | $ | 3,323 | $ | 3,297 | $ | 3,310 | $ | 3,264 | $ | 75 | $ | 134 | |||||||||
| Income producing commercial RE | 4,361 | 4,259 | 4,058 | 4,206 | 4,264 | 102 | 97 | ||||||||||||||||
| Commercial & industrial | 2,428 | 2,313 | 2,299 | 2,405 | 2,411 | 115 | 17 | ||||||||||||||||
| Commercial construction | 1,656 | 1,785 | 2,014 | 1,936 | 1,860 | (129 | ) | (204 | ) | ||||||||||||||
| Equipment financing | 1,663 | 1,603 | 1,581 | 1,544 | 1,541 | 60 | 122 | ||||||||||||||||
| Total commercial | 13,506 | 13,283 | 13,249 | 13,401 | 13,340 | 223 | 166 | ||||||||||||||||
| Residential mortgage | 3,232 | 3,263 | 3,266 | 3,240 | 3,199 | (31 | ) | 33 | |||||||||||||||
| Home equity lines of credit | 1,065 | 1,015 | 985 | 969 | 959 | 50 | 106 | ||||||||||||||||
| Residential construction | 178 | 189 | 211 | 257 | 302 | (11 | ) | (124 | ) | ||||||||||||||
| Manufactured housing | 2 | 2 | 321 | 328 | 336 | - | (334 | ) | |||||||||||||||
| Consumer | 186 | 188 | 183 | 180 | 181 | (2 | ) | 5 | |||||||||||||||
| Other | 7 | 24 | (4 | ) | - | 2 | (17 | ) | 5 | ||||||||||||||
| Total loans | $ | 18,176 | $ | 17,964 | $ | 18,211 | $ | 18,375 | $ | 18,319 | $ | 212 | $ | (143 | ) | ||||||||
| LOANS BY STATE | |||||||||||||||||||||||
| Georgia | $ | 4,447 | $ | 4,470 | $ | 4,411 | $ | 4,356 | $ | 4,357 | $ | (23 | ) | $ | 90 | ||||||||
| South Carolina | 2,815 | 2,782 | 2,779 | 2,804 | 2,780 | 33 | 35 | ||||||||||||||||
| North Carolina | 2,644 | 2,586 | 2,591 | 2,566 | 2,492 | 58 | 152 | ||||||||||||||||
| Tennessee | 1,799 | 1,848 | 2,144 | 2,209 | 2,244 | (49 | ) | (445 | ) | ||||||||||||||
| Florida | 2,527 | 2,423 | 2,407 | 2,443 | 2,442 | 104 | 85 | ||||||||||||||||
| Alabama | 996 | 996 | 1,021 | 1,068 | 1,082 | - | (86 | ) | |||||||||||||||
| Commercial Banking Solutions | 2,948 | 2,859 | 2,858 | 2,929 | 2,922 | 89 | 26 | ||||||||||||||||
| Total loans | $ | 18,176 | $ | 17,964 | $ | 18,211 | $ | 18,375 | $ | 18,319 | $ | 212 | $ | (143 | ) | ||||||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||
| Financial Highlights | ||||||||||||||
| Loan Portfolio Composition at Year-End | ||||||||||||||
| (in millions) | ||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||
| LOANS BY CATEGORY | ||||||||||||||
| Owner occupied commercial RE | $ | 3,398 | $ | 3,264 | $ | 2,735 | $ | 2,322 | $ | 2,090 | ||||
| Income producing commercial RE | 4,361 | 4,264 | 3,262 | 2,601 | 2,541 | |||||||||
| Commercial & industrial | 2,428 | 2,411 | 2,252 | 1,910 | 2,499 | |||||||||
| Commercial construction | 1,656 | 1,860 | 1,598 | 1,015 | 967 | |||||||||
| Equipment financing | 1,663 | 1,541 | 1,374 | 1,083 | 864 | |||||||||
| Total commercial | 13,506 | 13,340 | 11,221 | 8,931 | 8,961 | |||||||||
| Residential mortgage | 3,232 | 3,199 | 2,355 | 1,638 | 1,285 | |||||||||
| Home equity | 1,065 | 959 | 850 | 694 | 697 | |||||||||
| Residential construction | 178 | 302 | 443 | 359 | 281 | |||||||||
| Manufactured housing | 2 | 336 | 317 | - | - | |||||||||
| Consumer | 186 | 181 | 149 | 138 | 147 | |||||||||
| Other | 7 | 2 | - | - | - | |||||||||
| Total loans | $ | 18,176 | $ | 18,319 | $ | 15,335 | $ | 11,760 | $ | 11,371 | ||||
| LOANS BY STATE | ||||||||||||||
| Georgia | $ | 4,447 | $ | 4,357 | $ | 4,051 | $ | 3,778 | $ | 3,685 | ||||
| South Carolina | 2,815 | 2,780 | 2,587 | 2,235 | 1,947 | |||||||||
| North Carolina | 2,644 | 2,492 | 2,186 | 1,895 | 1,281 | |||||||||
| Tennessee | 1,799 | 2,244 | 2,507 | 373 | 415 | |||||||||
| Florida | 2,527 | 2,442 | 1,308 | 1,148 | 1,435 | |||||||||
| Alabama | 996 | 1,082 | - | - | - | |||||||||
| Commercial Banking Solutions | 2,948 | 2,922 | 2,696 | 2,331 | 2,608 | |||||||||
| Total loans | $ | 18,176 | $ | 18,319 | $ | 15,335 | $ | 11,760 | $ | 11,371 | ||||
| UNITED COMMUNITY BANKS, INC. | |||||||||
| Financial Highlights | |||||||||
| Credit Quality | |||||||||
| (in thousands) | |||||||||
| 2024 | |||||||||
| Fourth Quarter | Third Quarter | Second Quarter | |||||||
| NONACCRUAL LOANS | |||||||||
| Owner occupied RE | $ | 11,674 | $ | 7,783 | $ | 4,820 | |||
| Income producing RE | 25,357 | 31,222 | 34,285 | ||||||
| Commercial & industrial | 29,339 | 28,856 | 17,335 | ||||||
| Commercial construction | 7,400 | 7,356 | 6,854 | ||||||
| Equipment financing | 8,925 | 9,123 | 8,341 | ||||||
| Total commercial | 82,695 | 84,340 | 71,635 | ||||||
| Residential mortgage | 24,615 | 21,851 | 18,473 | ||||||
| Home equity | 4,630 | 4,111 | 3,779 | ||||||
| Residential construction | 57 | 118 | 163 | ||||||
| Manufactured housing | 1,444 | 1,808 | 20,356 | ||||||
| Consumer | 138 | 152 | 72 | ||||||
| Total nonaccrual loans | 113,579 | 112,380 | 114,478 | ||||||
| OREO and repossessed assets | 2,056 | 2,580 | 2,244 | ||||||
| Total NPAs | $ | 115,635 | $ | 114,960 | $ | 116,722 | |||
| 2024 | |||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||
| (in thousands) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | |||||||||||||||
| NET CHARGE-OFFS BY CATEGORY | |||||||||||||||||||||
| Owner occupied RE | $ | (184 | ) | (0.02 | )% | $ | (184 | ) | (0.02 | )% | $ | 163 | 0.02 | % | |||||||
| Income producing RE | (1,001 | ) | (0.09 | ) | 1,409 | 0.13 | 2,968 | 0.29 | |||||||||||||
| Commercial & industrial | 4,075 | 0.69 | 4,577 | 0.79 | 1,281 | 0.22 | |||||||||||||||
| Commercial construction | 2 | - | 36 | 0.01 | (48 | ) | (0.01 | ) | |||||||||||||
| Equipment financing | 5,812 | 1.43 | 5,268 | 1.32 | 5,502 | 1.42 | |||||||||||||||
| Total commercial | 8,704 | 0.26 | 11,106 | 0.33 | 9,866 | 0.30 | |||||||||||||||
| Residential mortgage | 145 | 0.02 | 32 | - | (107 | ) | (0.01 | ) | |||||||||||||
| Home equity | (33 | ) | (0.01 | ) | 36 | 0.01 | (27 | ) | (0.01 | ) | |||||||||||
| Residential construction | 7 | 0.02 | 111 | 0.22 | 26 | 0.04 | |||||||||||||||
| Manufactured housing | 114 | 23.41 | 11,556 | 28.51 | 1,150 | 1.43 | |||||||||||||||
| Consumer | 580 | 1.24 | 810 | 1.74 | 706 | 1.57 | |||||||||||||||
| Total | $ | 9,517 | 0.21 | $ | 23,651 | 0.52 | $ | 11,614 | 0.26 | ||||||||||||
| (1) Annualized. | |||||||||||||||||||||
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Balance Sheets (Unaudited) |
| (in thousands, except share and per share data) |
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 296,161 | $ | 200,781 | ||||
| Interest-bearing deposits in banks | 223,712 | 803,094 | ||||||
| Cash and cash equivalents | 519,873 | 1,003,875 | ||||||
| Debt securities available-for-sale | 4,436,291 | 3,331,084 | ||||||
| Debt securities held-to-maturity (fair value $1,944,126 and $2,095,620, respectively) | 2,368,107 | 2,490,848 | ||||||
| Loans held for sale | 57,534 | 33,008 | ||||||
| Loans and leases held for investment | 18,175,980 | 18,318,755 | ||||||
| Less allowance for credit losses - loans and leases | (206,998 | ) | (208,071 | ) | ||||
| Loans and leases, net | 17,968,982 | 18,110,684 | ||||||
| Premises and equipment, net | 394,264 | 378,421 | ||||||
| Bank owned life insurance | 346,234 | 345,371 | ||||||
| Accrued interest receivable | 85,616 | 87,782 | ||||||
| Net deferred tax asset | 96,982 | 113,214 | ||||||
| Derivative financial instruments | 46,883 | 50,352 | ||||||
| Goodwill and other intangible assets, net | 956,643 | 990,087 | ||||||
| Other assets | 442,849 | 362,525 | ||||||
| Total assets | $ | 27,720,258 | $ | 27,297,251 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 6,211,182 | $ | 6,534,307 | ||||
| NOW and interest-bearing demand | 6,141,342 | 6,155,193 | ||||||
| Money market | 6,398,144 | 5,600,587 | ||||||
| Savings | 1,100,591 | 1,207,807 | ||||||
| Time | 3,441,424 | 3,649,498 | ||||||
| Brokered | 168,292 | 163,219 | ||||||
| Total deposits | 23,460,975 | 23,310,611 | ||||||
| Short-term borrowings | 195,000 | - | ||||||
| Long-term debt | 254,152 | 324,823 | ||||||
| Derivative financial instruments | 77,834 | 84,811 | ||||||
| Accrued expenses and other liabilities | 300,170 | 315,481 | ||||||
| Total liabilities | 24,288,131 | 24,035,726 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $1 par value: 10,000,000 shares authorized; 3,662 shares Series I issued and outstanding; $25,000 per share liquidation preference | 88,266 | 88,266 | ||||||
| Common stock, $1 par value; 200,000,000 shares authorized; 119,364,110 and 119,010,319 shares issued and outstanding, respectively | 119,364 | 119,010 | ||||||
| Common stock issuable; 600,168 and 620,108 shares, respectively | 12,999 | 13,110 | ||||||
| Capital surplus | 2,710,279 | 2,699,112 | ||||||
| Retained earnings | 714,138 | 581,219 | ||||||
| Accumulated other comprehensive loss | (212,919 | ) | (239,192 | ) | ||||
| Total shareholders' equity | 3,432,127 | 3,261,525 | ||||||
| Total liabilities and shareholders' equity | $ | 27,720,258 | $ | 27,297,251 | ||||
| UNITED COMMUNITY BANKS, INC. |
| Consolidated Statements of Income (Unaudited) |
| (in thousands, except per share data) |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest revenue: | ||||||||||||||||
| Loans, including fees | $ | 280,325 | $ | 281,909 | $ | 1,147,477 | $ | 1,042,605 | ||||||||
| Investment securities, including tax exempt of $1,701, $1,732, $6,834 and $7,295 | 57,127 | 44,025 | 206,623 | 169,800 | ||||||||||||
| Deposits in banks and short-term investments | 7,510 | 12,764 | 23,641 | 24,702 | ||||||||||||
| Total interest revenue | 344,962 | 338,698 | 1,377,741 | 1,237,107 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW and interest-bearing demand | 42,012 | 44,527 | 175,534 | 125,336 | ||||||||||||
| Money market | 53,859 | 50,967 | 214,742 | 156,397 | ||||||||||||
| Savings | 652 | 758 | 2,717 | 2,866 | ||||||||||||
| Time | 34,601 | 35,511 | 142,526 | 110,975 | ||||||||||||
| Deposits | 131,124 | 131,763 | 535,519 | 395,574 | ||||||||||||
| Short-term borrowings | 44 | 9 | 131 | 3,195 | ||||||||||||
| Federal Home Loan Bank advances | - | - | - | 5,761 | ||||||||||||
| Long-term debt | 3,461 | 3,473 | 14,723 | 14,812 | ||||||||||||
| Total interest expense | 134,629 | 135,245 | 550,373 | 419,342 | ||||||||||||
| Net interest revenue | 210,333 | 203,453 | 827,368 | 817,765 | ||||||||||||
| Provision for credit losses | 11,389 | 14,626 | 50,951 | 89,430 | ||||||||||||
| Net interest revenue after provision for credit losses | 198,944 | 188,827 | 776,417 | 728,335 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and fees | 10,622 | 9,621 | 40,994 | 38,412 | ||||||||||||
| Mortgage loan gains and related fees | 9,737 | 1,956 | 27,567 | 19,220 | ||||||||||||
| Wealth management fees | 4,658 | 5,965 | 23,695 | 23,740 | ||||||||||||
| Net gains (losses) from sale of other loans | 1,583 | 2,237 | (21,284 | ) | 9,146 | |||||||||||
| Other lending and loan servicing fees | 3,346 | 3,994 | 14,396 | 13,973 | ||||||||||||
| Securities losses, net | (3,316 | ) | (51,689 | ) | (3,316 | ) | (53,333 | ) | ||||||||
| Other | 13,892 | 4,826 | 42,704 | 24,325 | ||||||||||||
| Total noninterest income | 40,522 | (23,090 | ) | 124,756 | 75,483 | |||||||||||
| Total revenue | 239,466 | 165,737 | 901,173 | 803,818 | ||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries and employee benefits | 85,707 | 82,343 | 340,043 | 318,464 | ||||||||||||
| Occupancy | 10,840 | 11,616 | 44,306 | 42,640 | ||||||||||||
| Communications and equipment | 12,715 | 11,610 | 49,249 | 43,264 | ||||||||||||
| FDIC assessments and other regulatory charges | 3,942 | 14,992 | 20,978 | 27,449 | ||||||||||||
| Professional fees | 6,268 | 7,062 | 24,732 | 26,732 | ||||||||||||
| Lending and loan servicing expense | 2,311 | 2,176 | 8,379 | 9,722 | ||||||||||||
| Outside services - electronic banking | 3,540 | 2,931 | 13,703 | 11,577 | ||||||||||||
| Postage, printing and supplies | 2,491 | 2,162 | 9,867 | 9,467 | ||||||||||||
| Advertising and public relations | 2,145 | 2,559 | 8,546 | 9,473 | ||||||||||||
| Amortization of intangibles | 3,387 | 4,055 | 14,596 | 15,175 | ||||||||||||
| Merger-related and other charges | 2,203 | 5,766 | 8,623 | 27,210 | ||||||||||||
| Other | 7,507 | 7,315 | 35,145 | 30,100 | ||||||||||||
| Total noninterest expenses | 143,056 | 154,587 | 578,167 | 571,273 | ||||||||||||
| Net income before income taxes | 96,410 | 11,150 | 323,006 | 232,545 | ||||||||||||
| Income tax expense (benefit) | 20,606 | (2,940 | ) | 70,609 | 45,001 | |||||||||||
| Net income | $ | 75,804 | $ | 14,090 | $ | 252,397 | $ | 187,544 | ||||||||
| Preferred stock dividends, net of discount on repurchases | 1,574 | 1,395 | 6,293 | 5,665 | ||||||||||||
| Earnings allocated to participating securities | 503 | 77 | 1,478 | 1,032 | ||||||||||||
| Net income available to common shareholders | $ | 73,727 | $ | 12,618 | $ | 244,626 | $ | 180,847 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.61 | $ | 0.11 | $ | 2.04 | $ | 1.54 | ||||||||
| Diluted | 0.61 | 0.11 | 2.04 | 1.54 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 119,924 | 119,612 | 119,783 | 117,603 | ||||||||||||
| Diluted | 120,111 | 119,713 | 119,900 | 117,745 | ||||||||||||
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Three Months Ended December 31, |
| (dollars in thousands, fully taxable equivalent (FTE)) |
| 2024 | 2023 | |||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 17,934,730 | $ | 279,938 | 6.21 | % | $ | 18,167,572 | $ | 281,776 | 6.15 | % | ||||||||
| Taxable securities (3) | 6,722,655 | 55,426 | 3.30 | 5,772,630 | 42,293 | 2.93 | ||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 359,569 | 2,276 | 2.53 | 367,585 | 2,326 | 2.53 | ||||||||||||||
| Federal funds sold and other interest-earning assets | 812,962 | 8,396 | 4.11 | 1,092,939 | 13,294 | 4.83 | ||||||||||||||
| Total interest-earning assets (FTE) | 25,829,916 | 346,036 | 5.33 | 25,400,726 | 339,689 | 5.31 | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||
| Allowance for loan losses | (208,788 | ) | (204,631 | ) | ||||||||||||||||
| Cash and due from banks | 228,601 | 210,383 | ||||||||||||||||||
| Premises and equipment | 398,794 | 377,765 | ||||||||||||||||||
| Other assets (3) | 1,606,297 | 1,516,268 | ||||||||||||||||||
| Total assets | $ | 27,854,820 | $ | 27,300,511 | ||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| NOW and interest-bearing demand | $ | 6,313,325 | 42,012 | 2.65 | $ | 5,961,835 | 44,527 | 2.96 | ||||||||||||
| Money market | 6,474,284 | 53,859 | 3.31 | 5,799,213 | 50,967 | 3.49 | ||||||||||||||
| Savings | 1,105,572 | 652 | 0.23 | 1,227,708 | 758 | 0.24 | ||||||||||||||
| Time | 3,472,161 | 34,030 | 3.90 | 3,611,790 | 35,117 | 3.86 | ||||||||||||||
| Brokered time deposits | 50,406 | 571 | 4.51 | 60,583 | 394 | 2.58 | ||||||||||||||
| Total interest-bearing deposits | 17,415,748 | 131,124 | 3.00 | 16,661,129 | 131,763 | 3.14 | ||||||||||||||
| Federal funds purchased and other borrowings | 3,859 | 44 | 4.54 | 7,958 | 9 | 0.45 | ||||||||||||||
| Long-term debt | 303,523 | 3,461 | 4.54 | 324,801 | 3,473 | 4.24 | ||||||||||||||
| Total borrowed funds | 307,382 | 3,505 | 4.54 | 332,759 | 3,482 | 4.15 | ||||||||||||||
| Total interest-bearing liabilities | 17,723,130 | 134,629 | 3.02 | 16,993,888 | 135,245 | 3.16 | ||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 6,275,493 | 6,690,251 | ||||||||||||||||||
| Other liabilities | 454,891 | 410,067 | ||||||||||||||||||
| Total liabilities | 24,453,514 | 24,094,206 | ||||||||||||||||||
| Shareholders' equity | 3,401,306 | 3,206,305 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 27,854,820 | $ | 27,300,511 | ||||||||||||||||
| Net interest revenue (FTE) | $ | 211,407 | $ | 204,444 | ||||||||||||||||
| Net interest-rate spread (FTE) | 2.31 | % | 2.15 | % | ||||||||||||||||
| Net interest margin (FTE) (4) | 3.26 | % | 3.19 | % | ||||||||||||||||
(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.07 million and $991,000, respectively, for the three months ended December 31, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3)Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $261 million in 2024 and $458 million in 2023 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.
| Average Consolidated Balance Sheets and Net Interest Analysis |
| For the Twelve Months Ended December 31, |
| (dollars in thousands, fully taxable equivalent (FTE)) |
| 2024 | 2023 | |||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 18,124,179 | $ | 1,146,440 | 6.33 | % | $ | 17,576,424 | $ | 1,042,578 | 5.93 | % | ||||||||
| Taxable securities (3) | 6,172,942 | 199,789 | 3.24 | 5,929,687 | 162,505 | 2.74 | ||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 362,655 | 9,152 | 2.52 | 381,731 | 9,796 | 2.57 | ||||||||||||||
| Federal funds sold and other interest-earning assets | 623,426 | 26,652 | 4.28 | 642,499 | 26,397 | 4.11 | ||||||||||||||
| Total interest-earning assets (FTE) | 25,283,202 | 1,382,033 | 5.47 | 24,530,341 | 1,241,276 | 5.06 | ||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||
| Allowance for loan losses | (212,968 | ) | (191,016 | ) | ||||||||||||||||
| Cash and due from banks | 215,411 | 239,574 | ||||||||||||||||||
| Premises and equipment | 394,127 | 355,139 | ||||||||||||||||||
| Other assets (3) | 1,611,405 | 1,517,940 | ||||||||||||||||||
| Total assets | $ | 27,291,177 | $ | 26,451,978 | ||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| NOW and interest-bearing demand | $ | 6,014,052 | 175,534 | 2.92 | $ | 5,161,071 | 125,336 | 2.43 | ||||||||||||
| Money market | 6,188,579 | 214,742 | 3.47 | 5,462,677 | 156,397 | 2.86 | ||||||||||||||
| Savings | 1,146,305 | 2,717 | 0.24 | 1,312,469 | 2,866 | 0.22 | ||||||||||||||
| Time | 3,519,461 | 140,229 | 3.98 | 3,106,989 | 100,973 | 3.25 | ||||||||||||||
| Brokered time deposits | 50,359 | 2,297 | 4.56 | 224,914 | 10,002 | 4.45 | ||||||||||||||
| Total interest-bearing deposits | 16,918,756 | 535,519 | 3.17 | 15,268,120 | 395,574 | 2.59 | ||||||||||||||
| Federal funds purchased and other borrowings | 2,468 | 131 | 5.31 | 75,965 | 3,195 | 4.21 | ||||||||||||||
| Federal Home Loan Bank advances | 4 | - | - | 124,425 | 5,761 | 4.63 | ||||||||||||||
| Long-term debt | 319,163 | 14,723 | 4.61 | 324,753 | 14,812 | 4.56 | ||||||||||||||
| Total borrowed funds | 321,635 | 14,854 | 4.62 | 525,143 | 23,768 | 4.53 | ||||||||||||||
| Total interest-bearing liabilities | 17,240,391 | 550,373 | 3.19 | 15,793,263 | 419,342 | 2.66 | ||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 6,299,019 | 7,091,034 | ||||||||||||||||||
| Other liabilities | 409,547 | 397,337 | ||||||||||||||||||
| Total liabilities | 23,948,957 | 23,281,634 | ||||||||||||||||||
| Shareholders' equity | 3,342,220 | 3,170,344 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 27,291,177 | $ | 26,451,978 | ||||||||||||||||
| Net interest revenue (FTE) | $ | 831,660 | $ | 821,934 | ||||||||||||||||
| Net interest-rate spread (FTE) | 2.27 | % | 2.40 | % | ||||||||||||||||
| Net interest margin (FTE) (4) | 3.29 | % | 3.35 | % | ||||||||||||||||
(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $4.29 million and $4.17 million, respectively, for 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2)Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3)Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $306 million in 2024 and $424 million in 2023 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.
About United Community Banks, Inc.
United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management, and mortgage services. As of December 31, 2024, United Community Banks, Inc. had $27.7 billion in assets, 199 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power's award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2024, United was named by American Banker as one of the "Best Banks to Work For" for the eighth consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World's Best Banks and one of America's Best Banks. Additional information about United can be found at ucbi.com.
Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as "noninterest income - operating", "noninterest expense - operating", "operating net income," "pre-tax, pre-provision income," "operating net income per diluted common share," "operating earnings per share," "tangible book value per common share," "operating return on common equity," "operating return on tangible common equity," "operating return on assets," "return on assets - pre-tax, pre-provision - operating," "return on assets - pre-tax, pre-provision," "operating efficiency ratio," and "tangible common equity to tangible assets." These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United's underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented 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 with the accompanying financial statement tables.
Caution About Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential," or the negative of these terms or other comparable terminology, and include statements related to the expected benefits of the acquisition of ANB Holdings, Inc. ("ANB"). Forward-looking statements are not historical facts and represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.
Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the ANB acquisition may not be realized or take longer than anticipated to be realized, (2) disruption from the ANB acquisition of customer, supplier, employee or other business partner relationships, (3) the possibility that the costs, fees, expenses and charges related to the ANB acquisition may be greater than anticipated, (4) reputational risk and the reaction of each of the companies' customers, suppliers, employees or other business partners to the ANB acquisition, (5) the failure of the ANB acquisition to close or any unexpected delay in closing the ANB acquisition, (6) the risks relating to the integration of ANB's operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (7) the risks associated with United's pursuit of future acquisitions, (8) the risk associated with expansion into new geographic or product markets, (9) the dilution caused by United's issuance of additional shares of its common stock in the ANB acquisition, and (10) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in United's Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by United with the United States Securities and Exchange Commission ("SEC").
Many of these factors are beyond United's ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.
United qualifies all forward-looking statements by these cautionary statements.
For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
