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United Community Banks, Inc. Reports Third Quarter Results

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United Community Banks (NYSE: UCB) reported Q3 2024 net income of $47.3 million and pre-tax, pre-provision income of $74.2 million. Diluted EPS was $0.38, down 3% year-over-year. The results were impacted by a strategic sale of $318 million in manufactured housing loans, resulting in a $21.4 million after-tax loss. Operating EPS was $0.57, up 27% from Q3 2023. Customer deposits grew by $262 million. The company maintained a net interest margin of 3.33% and reported net charge-offs of $23.7 million. The quarter included a $9.9 million Hurricane Helene-related loan loss provision.

United Community Banks (NYSE: UCB) ha riportato un reddito netto per il terzo trimestre 2024 di $47,3 milioni e un reddito ante imposte e accantonamenti di $74,2 milioni. L'utile per azione diluito è stato di $0,38, in calo del 3% rispetto all'anno precedente. I risultati sono stati influenzati da una vendita strategica di prestiti per abitazioni prodotte del valore di $318 milioni, che ha comportato una perdita dopo le imposte di $21,4 milioni. L'utile per azione operativo è stato di $0,57, con un aumento del 27% rispetto al terzo trimestre 2023. I depositi dei clienti sono aumentati di $262 milioni. L'azienda ha mantenuto un margine di interesse netto del 3,33% e ha riportato cancellazioni nette di $23,7 milioni. Il trimestre ha incluso un accantonamento per perdite su prestiti legato all'uragano Helene di $9,9 milioni.

United Community Banks (NYSE: UCB) reportó un ingreso neto del tercer trimestre de 2024 de $47.3 millones y un ingreso antes de impuestos y provisiones de $74.2 millones. El BPA diluido fue de $0.38, una disminución del 3% en comparación con el año anterior. Los resultados se vieron afectados por una venta estratégica de préstamos para viviendas manufacturadas por un total de $318 millones, lo que resultó en una pérdida después de impuestos de $21.4 millones. El BPA operativo fue de $0.57, un aumento del 27% con respecto al tercer trimestre de 2023. Los depósitos de los clientes crecieron en $262 millones. La empresa mantuvo un margen de interés neto del 3.33% y reportó cancelaciones netas de $23.7 millones. El trimestre incluyó una provisión por pérdidas de préstamos relacionada con el huracán Helene de $9.9 millones.

유나이티드 커뮤니티 은행(뉴욕 증권 거래소: UCB)은 2024년 3분기 순이익이 $47.3백만 달러이며 세전 및 충당금 전 수익이 $74.2백만 달러라고 보고했습니다. 희석 주당순이익은 $0.38로, 전년 대비 3% 감소했습니다. 결과는 $318백만 규모의 제조 주택 대출의 전략적 매각에 영향을 받아 세후 $21.4백만의 손실을 초래했습니다. 운영 주당순이익은 $0.57로, 2023년 3분기 대비 27% 증가했습니다. 고객 예금은 $262백만 증가했습니다. 회사는 3.33%의 순이자 마진을 유지하며 $23.7백만의 순 배당금을 보고했습니다. 이번 분기는 허리케인 헬렌과 관련된 $9.9백만의 대출 손실 충당금이 포함되었습니다.

United Community Banks (NYSE: UCB) a rapporté un revenu net de 47,3 millions de dollars pour le troisième trimestre 2024 et un revenu avant impôt et provision de 74,2 millions de dollars. Le BPA dilué était de 0,38 $, en baisse de 3 % par rapport à l'année précédente. Les résultats ont été affectés par une vente stratégique de 318 millions de dollars de prêts pour logements manufacturés, entraînant une perte après impôts de 21,4 millions de dollars. Le BPA opérationnel s'élevait à 0,57 $, en hausse de 27 % par rapport au troisième trimestre 2023. Les dépôts des clients ont augmenté de 262 millions de dollars. L'entreprise a maintenu une marge d'intérêt net de 3,33 % et a signalé des dépréciations nettes de 23,7 millions de dollars. Ce trimestre a inclus une provision pour pertes sur prêts de 9,9 millions de dollars liée à l'ouragan Helene.

Die United Community Banks (NYSE: UCB) berichteten für das dritte Quartal 2024 ein Nettoeinkommen von 47,3 Millionen USD und ein Einkommen vor Steuern und Rückstellungen von 74,2 Millionen USD. Der verwässerte Gewinn je Aktie betrug 0,38 USD, was einem Rückgang von 3 % im Jahresvergleich entspricht. Die Ergebnisse wurden durch einen strategischen Verkauf von 318 Millionen USD an Darlehen für seriengefertigte Wohnungen beeinflusst, was zu einem Nachsteuerverlust von 21,4 Millionen USD führte. Der operative Gewinn je Aktie betrug 0,57 USD und stieg um 27 % im Vergleich zum dritten Quartal 2023. Die Einlagen der Kunden wuchsen um 262 Millionen USD. Das Unternehmen hielt eine Nettozinsspanne von 3,33 % und meldete eine Nettoabschreibung von 23,7 Millionen USD. Im Quartal war eine Rückstellung für Darlehensverluste in Höhe von 9,9 Millionen USD im Zusammenhang mit dem Hurrikan Helene enthalten.

Positive
  • Operating EPS increased 27% year-over-year to $0.57
  • Customer deposits grew by $262 million (5% annualized)
  • Strong capital position with preliminary CET1 ratio of 13.1%
  • Net interest margin remained solid at 3.33%
Negative
  • GAAP EPS decreased 3% year-over-year to $0.38
  • $21.4 million after-tax loss from manufactured housing loan portfolio sale
  • Net charge-offs increased to $23.7 million (0.52% of average loans)
  • $9.9 million provision for Hurricane Helene-related losses

Insights

The Q3 results show mixed performance with some concerning trends. The $47.3 million net income was impacted by a $21.4 million after-tax loss from selling the manufactured housing loan portfolio. The core operating metrics remain solid with:

  • Strong customer deposit growth of $262 million (5% annualized)
  • Healthy capital ratios with CET1 at 13.1%
  • Stable asset quality with NPAs at 0.42%

However, the 3.33% net interest margin declined 4 basis points quarter-over-quarter and charge-offs increased to 0.52% of average loans. The $9.9 million hurricane-related provision adds near-term uncertainty.

The strategic decision to exit manufactured housing loans improves the bank's risk profile but came at a significant cost. Notable risk factors include:

  • Hurricane Helene exposure requiring a special 3.5% reserve on $383 million of impacted loans
  • Rising net charge-offs at 0.52% vs 0.26% last quarter
  • Pressure on net interest margin in a challenging rate environment

However, strong capital levels and liquidity provide good loss absorption capacity. The 8.93% tangible common equity ratio offers solid protection against potential credit losses.

Strong Customer Deposit Growth Drives Third Quarter Results

GREENVILLE, S.C. , Oct. 23, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the 2024 third quarter of $47.3 million and pre-tax, pre-provision income of $74.2 million. The result included the previously announced strategic decision to sell $318 million in manufactured housing loans, which negatively impacted the quarter by $21.4 million after-tax, or $0.18 per share. Diluted earnings per share of $0.38 for the quarter represented a decrease of $0.01, or 3%, from the third quarter a year ago and a decrease of $0.16, or 30%, from the second quarter of 2024.

On an operating basis, United’s diluted earnings per share of $0.57 was up 27% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and a lower provision for credit losses. The $0.57 result includes a $9.9 million Hurricane Helene related loan loss provision to increase the reserve on $383 million of loans in nine North Carolina counties impacted by the hurricane to 3.5% of loans.

United’s return on assets was 0.67%, or 1.01% on an operating basis. Return on common equity was 5.20% and return on tangible common equity on an operating basis was 11.17%. On a pre-tax, pre-provision basis, operating return on assets was 1.50% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.93%, up 15 basis points from the second quarter of 2024.

Chairman and CEO Lynn Harton stated, “We continue to focus on growth and the third quarter saw the return of modest loan and strong deposit growth. Excluding the sale of our manufactured housing portfolio, announced in early September, loan balances were up 1.5% annualized. Customer deposits, which exclude brokered deposits, were up $262 million, or 5% annualized. Our balance sheet remains highly liquid and our internal capital generation rate is running well in excess of our current capital needs. We maintained robust capital ratios with our preliminary CET1 moving to 13.1% and we opportunistically redeemed $8 million of relatively expensive Trust Preferred securities. The increase in liquidity and capital place us in a great position to take advantage of growth opportunities as we move into 2025.”

Mr. Harton continued, “We elected to sell our manufactured housing loan book, a business that was part of our Reliant Bancorp, Inc. acquisition in January of 2022, as a natural conclusion of our exit from the business, as we ceased originating loans in the third quarter of 2023. The transaction reduces our risk profile and allows us to allocate capital to other growth opportunities.”

United’s net interest margin decreased four basis points to 3.33% from the second quarter. The average yield on United’s interest-earning assets was down four basis points to 5.55%, while its cost of interest-bearing liabilities decreased two basis points, leading to the four-basis point reduction in net interest margin. Net charge-offs were $23.7 million, or 0.52% of average loans, during the quarter, up 26 basis points compared to the second quarter of 2024 due to transaction-related losses resulting from the sale of our manufactured housing portfolio. NPAs were 42 basis points relative to total assets, down one basis point from the second quarter.

Mr. Harton concluded, “We are pleased with our operating performance this quarter, but we were also reminded this quarter of the importance of community. Many of our employees, customers, and communities have been impacted by the recent hurricanes. We are actively involved in the recovery process through volunteer hours and financial support and will be ready to lead the rebuilding process, when and as needed. Many thanks to our employees throughout the company that have responded, in sometimes heroic ways, to support each other and our customers.”

Third Quarter 2024 Financial Highlights:

  • Net income of $47.3 million and pre-tax, pre-provision income of $74.2 million
  • EPS down 3% compared to third quarter 2023 on a GAAP basis and up 27% on an operating basis; compared to second quarter 2024, EPS down 30% on a GAAP basis and down 2% on an operating basis
  • The GAAP results were impacted by the decision to sell the manufactured housing loan book at a $21.4 million after-tax loss, or $0.18, approximately one year after making the strategic decision to cease originations
  • Return on assets of 0.67%, or 1.01% on an operating basis
  • Pre-tax, pre-provision return on assets of 1.50% on an operating basis
  • Return on common equity of 5.20%
  • Return on tangible common equity of 11.17% on an operating basis
  • A provision for credit losses of $14.4 million, which includes $9.9 million to establish a special reserve for expected credit losses from Hurricane Helene
  • Net charge-offs of $23.7 million, or 52 basis points as a percent of average loans, which included $11.0 million, or 24 basis points, of transaction-related losses from the sale of our manufactured housing portfolio
  • Nonperforming assets of 0.42% of total assets, down one basis point compared to June 30, 2024
  • Loan production of $1.2 billion
  • Customer deposits were up $262 million from the second quarter, with most of the growth in NOW and money market deposits
  • Net interest margin of 3.33% decreased by four basis points from the second quarter mostly due to lower purchased loan accretion, the sale of our manufactured housing portfolio, and changing composition of our earning assets and interest-bearing liabilities
  • Mortgage closings of $239 million compared to $211 million a year ago; mortgage rate locks of $306 million compared to $304 million a year ago
  • Noninterest income was down $28.5 million on a linked quarter basis with $27.2 million due to losses from the sale of manufactured housing loans. The remaining decrease was primarily driven by the mark on our mortgage servicing rights asset.
  • Noninterest expenses decreased by $4.0 million compared to the second quarter on a GAAP basis and were up $0.3 million on an operating basis
  • Efficiency ratio of 65.5%, or 57.4% on an operating basis
  • Maintained robust capital ratios with preliminary CET1 increasing to 13.1% and opportunistically redeemed $8 million of relatively expensive Trust Preferred securities
  • Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year

Conference Call
United will hold a conference call on Wednesday, October 23, 2024 at 11 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/10193157/fd9f74293a. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. 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, www.ucbi.com.


UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(In thousands, except per share data)
 2024 2023  Third
Quarter
2024-
2023
Change		  For the Nine Months
Ended September 30,		   YTD
2024-
2023
Change		 
  Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		    2024   2023  
INCOME SUMMARY                            
Interest revenue$349,086  $346,965  $336,728  $338,698  $323,147      $1,032,779  $898,409     
Interest expense139,900  138,265  137,579  135,245  120,591      415,744  284,097     
Net interest revenue209,186  208,700  199,149  203,453  202,556   3% 617,035  614,312   —%
Provision for credit losses14,428  12,235  12,899  14,626  30,268      39,562  74,804     
Noninterest income8,091  36,556  39,587  (23,090) 31,977   (75) 84,234  98,573   (15)
Total revenue202,849  233,021  225,837  165,737  204,265   (1) 661,707  638,081   4 
Noninterest expenses143,065  147,044  145,002  154,587  144,474   (1) 435,111  416,686   4 
Income before income tax expense59,784  85,977  80,835  11,150  59,791   —  226,596  221,395   2 
Income tax expense12,437  19,362  18,204  (2,940) 11,925   4  50,003  47,941   4 
Net income47,347  66,615  62,631  14,090  47,866   (1) 176,593  173,454   2 
Non-operating items29,385  6,493  2,187  67,450  9,168      38,065  21,444     
Income tax benefit of non-operating items(6,276) (1,462) (493) (16,714) (2,000)     (8,231) (4,775)    
Net income - operating(1)$70,456  $71,646  $64,325  $64,826  $55,034   28  $206,427  $190,123   9 
Pre-tax pre-provision income(5)$74,212  $98,212  $93,734  $25,776  $90,059   (18) $266,158  $296,199   (10)
PERFORMANCE MEASURES                            
Per common share:                            
Diluted net income - GAAP$0.38  $0.54  $0.51  $0.11  $0.39   (3) $1.43  $1.44   (1)
Diluted net income - operating(1)0.57  0.58  0.52  0.53  0.45   27  1.67  1.58   6 
Cash dividends declared0.24  0.23  0.23  0.23  0.23   4  0.70  0.69   1 
Book value27.68  27.18  26.83  26.52  25.87   7  27.68  25.87   7 
Tangible book value(3)19.66  19.13  18.71  18.39  17.70   11  19.66  17.70   11 
Key performance ratios:                            
Return on common equity - GAAP(2)(4)5.20% 7.53% 7.14% 1.44% 5.32%     6.61% 6.69%    
Return on common equity - operating(1)(2)(4)7.82  8.12  7.34  7.27  6.14      7.76  7.35     
Return on tangible common equity - operating(1)(2)(3)(4)11.17  11.68  10.68  10.58  9.03      11.18  10.65     
Return on assets - GAAP(4)0.67  0.97  0.90  0.18  0.68      0.85  0.86     
Return on assets - operating(1)(4)1.01  1.04  0.93  0.92  0.79      0.99  0.95     
Return on assets - pre-tax pre-provision - operating(1)(4)(5)1.50  1.54  1.40  1.33  1.44      1.48  1.60     
Net interest margin (fully taxable equivalent)(4)3.33  3.37  3.20  3.19  3.24      3.30  3.41     
Efficiency ratio - GAAP65.51  59.70  60.47  66.33  61.32      61.76  58.06     
Efficiency ratio - operating(1)57.37  57.06  59.15  59.57  57.43      57.84  55.07     
Equity to total assets12.45  12.35  12.06  11.95  11.85      12.45  11.85     
Tangible common equity to tangible assets(3)8.93  8.78  8.49  8.36  8.18      8.93  8.18     
ASSET QUALITY                            
Nonperforming assets ("NPAs")$114,960  $116,722  $107,230  $92,877  $90,883   26  $114,960  $90,883   26 
Allowance for credit losses - loans205,290  213,022  210,934  208,071  201,557   2  205,290  201,557   2 
Allowance for credit losses - total215,517  224,740  224,119  224,128  219,624   (2) 215,517  219,624   (2)
Net charge-offs23,651  11,614  12,908  10,122  26,638      48,173  42,121     
Allowance for credit losses - loans to loans1.14% 1.17% 1.15% 1.14% 1.11%     1.14% 1.11%    
Allowance for credit losses - total to loans1.20  1.23  1.22  1.22  1.21      1.20  1.21     
Net charge-offs to average loans(4)0.52  0.26  0.28  0.22  0.59      0.35  0.32     
NPAs to total assets0.42  0.43  0.39  0.34  0.34      0.42  0.34     
AT PERIOD END ($ in millions)                            
Loans$17,964  $18,211  $18,375  $18,319  $18,203   (1) $17,964  $18,203   (1)
Investment securities6,425  6,038  5,859  5,822  5,701   13  6,425  5,701   13 
Total assets27,373  27,057  27,365  27,297  26,869   2  27,373  26,869   2 
Deposits23,253  22,982  23,332  23,311  22,858   2  23,253  22,858   2 
Shareholders’ equity3,407  3,343  3,300  3,262  3,184   7  3,407  3,184   7 
Common shares outstanding (thousands)119,283  119,175  119,137  119,010  118,976   —  119,283  118,976   — 

(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
(in thousands, except per share data)
 2024 2023 For the Nine Months Ended
September 30,
  Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   2024   2023 
                     
Noninterest income reconciliation                    
Noninterest income (GAAP)$8,091  $36,556  $39,587  $(23,090) $31,977  $84,234  $98,573 
Loss on sale of manufactured housing loans27,209  —  —  —  —  27,209  — 
Gain on lease termination—  —  (2,400) —  —  (2,400) — 
Bond portfolio restructuring loss—  —  —  51,689  —  —  — 
Noninterest income - operating$35,300  $36,556  $37,187  $28,599  $31,977  $109,043  $98,573 
                     
Noninterest expense reconciliation                    
Noninterest expenses (GAAP)$143,065  $147,044  $145,002  $154,587  $144,474  $435,111  $416,686 
Loss on FinTrust (goodwill impairment)—  (5,100) —  —  —  (5,100) — 
FDIC special assessment—  764  (2,500) (9,995) —  (1,736) — 
Merger-related and other charges(2,176) (2,157) (2,087) (5,766) (9,168) (6,420) (21,444)
Noninterest expenses - operating$140,889  $140,551  $140,415  $138,826  $135,306  $421,855  $395,242 
                     
Net income to operating income reconciliation                    
Net income (GAAP)$47,347  $66,615  $62,631  $14,090  $47,866  $176,593  $173,454 
Loss on sale of manufactured housing loans27,209  —  —  —  —  27,209  — 
Bond portfolio restructuring loss—  —  —  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  — 
Merger-related and other charges2,176  2,157  2,087  5,766  9,168  6,420  21,444 
Income tax benefit of non-operating items(6,276) (1,462) (493) (16,714) (2,000) (8,231) (4,775)
Net income - operating$70,456  $71,646  $64,325  $64,826  $55,034  $206,427  $190,123 
                     
Net income to pre-tax pre-provision income reconciliation                    
Net income (GAAP)$47,347  $66,615  $62,631  $14,090  $47,866  $176,593  $173,454 
Income tax expense12,437  19,362  18,204  (2,940) 11,925  50,003  47,941 
Provision for credit losses14,428  12,235  12,899  14,626  30,268  39,562  74,804 
Pre-tax pre-provision income$74,212  $98,212  $93,734  $25,776  $90,059  $266,158  $296,199 
                     
Diluted income per common share reconciliation                    
Diluted income per common share (GAAP)$0.38  $0.54  $0.51  $0.11  $0.39  $1.43  $1.44 
Loss on sale of manufactured housing loans0.18  —  —  —  —  0.18  — 
Bond portfolio restructuring loss—  —  —  0.32  —  —  — 
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  — 
Merger-related and other charges0.01  0.01  0.01  0.04  0.06  0.04  0.14 
Diluted income per common share - operating$0.57  $0.58  $0.52  $0.53  $0.45  $1.67  $1.58 
                     
Book value per common share reconciliation                    
Book value per common share (GAAP)$27.68  $27.18  $26.83  $26.52  $25.87  $27.68  $25.87 
Effect of goodwill and other intangibles(8.02) (8.05) (8.12) (8.13) (8.17) (8.02) (8.17)
Tangible book value per common share$19.66  $19.13  $18.71  $18.39  $17.70  $19.66  $17.70 
                     
Return on tangible common equity reconciliation                    
Return on common equity (GAAP)5.20% 7.53% 7.14% 1.44% 5.32% 6.61% 6.69%
Loss on sale of manufactured housing loans2.43  —  —  —  —  0.82  — 
Bond portfolio restructuring loss—  —  —  4.47  —  —  — 
Gain on lease termination—  —  (0.22) —  —  (0.07) — 
Loss on FinTrust (goodwill impairment)—  0.46  —  —  —  0.16  — 
FDIC special assessment—  (0.07) 0.23  0.86  —  0.05  — 
Merger-related and other charges0.19  0.20  0.19  0.50  0.82  0.19  0.66 
Return on common equity - operating7.82  8.12  7.34  7.27  6.14  7.76  7.35 
Effect of goodwill and other intangibles3.35  3.56  3.34  3.31  2.89  3.42  3.30 
Return on tangible common equity - operating11.17% 11.68% 10.68% 10.58% 9.03% 11.18% 10.65%
                     
Return on assets reconciliation                    
Return on assets (GAAP)0.67% 0.97% 0.90% 0.18% 0.68% 0.85% 0.86%
Loss on sale of manufactured housing loans0.31  —  —  —  —  0.10  — 
Bond portfolio restructuring loss—  —  —  0.57  —  —  — 
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  — 
Merger-related and other charges0.03  0.02  0.03  0.06  0.11  0.02  0.09 
Return on assets - operating1.01% 1.04% 0.93% 0.92% 0.79% 0.99% 0.95%
                     
Return on assets to return on assets- pre-tax pre-provision reconciliation                    
Return on assets (GAAP)0.67% 0.97% 0.90% 0.18% 0.68% 0.85% 0.86%
Income tax (benefit) expense0.19  0.29  0.27  (0.04) 0.18  0.25  0.25 
Provision for credit losses0.21  0.18  0.19  0.21  0.45  0.19  0.38 
Loss on sale of manufactured housing loans0.40  —  —  —  —  0.13  — 
Bond portfolio restructuring loss—  —  —  0.75  —  —  — 
Gain on lease termination—  —  (0.04) —  —  (0.01) — 
Loss on FinTrust (goodwill impairment)—  0.08  —  —  —  0.03  — 
FDIC special assessment—  (0.01) 0.04  0.15  —  0.01  — 
Merger-related and other charges0.03  0.03  0.04  0.08  0.13  0.03  0.11 
Return on assets - pre-tax pre-provision - operating1.50% 1.54% 1.40% 1.33% 1.44% 1.48% 1.60%
                     
Efficiency ratio reconciliation                    
Efficiency ratio (GAAP)65.51% 59.70% 60.47% 66.33% 61.32% 61.76% 58.06%
Loss on sale of manufactured housing loans(7.15) —  —  —  —  (2.25) — 
Gain on lease termination—  —  0.60  —  —  0.21  — 
Loss on FinTrust (goodwill impairment)—  (2.07) —  —  —  (0.73) — 
FDIC special assessment—  0.31  (1.05) (4.29) —  (0.24) — 
Merger-related and other charges(0.99) (0.88) (0.87) (2.47) (3.89) (0.91) (2.99)
Efficiency ratio - operating57.37% 57.06% 59.15% 59.57% 57.43% 57.84% 55.07%
                     
Tangible common equity to tangible assets reconciliation                    
Equity to total assets (GAAP)12.45% 12.35% 12.06% 11.95% 11.85% 12.45% 11.85%
Effect of goodwill and other intangibles(3.20) (3.24) (3.25) (3.27) (3.33) (3.20) (3.33)
Effect of preferred equity(0.32) (0.33) (0.32) (0.32) (0.34) (0.32) (0.34)
Tangible common equity to tangible assets8.93% 8.78% 8.49% 8.36% 8.18% 8.93% 8.18%



UNITED COMMUNITY BANKS, INC.
Loan Portfolio Composition at Period-End
 2024 2023  
Linked
Quarter
Change		   
Year over
Year
Change		 
 (in millions) Third
Quarter		   Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   
LOANS BY CATEGORY                
Owner occupied commercial RE$3,323  $3,297  $3,310  $3,264  $3,279  $26  $44 
Income producing commercial RE 4,259   4,058   4,206   4,264   4,130  201  129 
Commercial & industrial 2,313   2,299   2,405   2,411   2,504  14  (191)
Commercial construction 1,785   2,014   1,936   1,860   1,850  (229) (65)
Equipment financing 1,603   1,581   1,544   1,541   1,534  22  69 
Total commercial 13,283   13,249   13,401   13,340   13,297  34  (14)
Residential mortgage 3,263   3,266   3,240   3,199   3,043  (3) 220 
Home equity 1,015   985   969   959   941  30  74 
Residential construction 189   211   257   302   399  (22) (210)
Manufactured housing 2   321   328   336   343  (319) (341)
Consumer 188   183   180   181   180  5  8 
Other 24   (4)  —   2  —   28  24 
Total loans$17,964  $18,211  $18,375  $18,319  $18,203  $(247) $(239)
                          
LOANS BY MARKET                         
Georgia$4,470  $4,411  $4,356  $4,357  $4,321  $59  $149 
South Carolina 2,782   2,779   2,804   2,780   2,801  3  (19)
North Carolina 2,586   2,591   2,566   2,492   2,445  (5) 141 
Tennessee 1,848   2,144   2,209   2,244   2,314  (296) (466)
Florida 2,423   2,407   2,443   2,442   2,318  16  105 
Alabama 996   1,021   1,068   1,082   1,070  (25) (74)
Commercial Banking Solutions 2,859   2,858   2,929   2,922   2,934  1  (75)
Total loans$17,964  $18,211  $18,375  $18,319  $18,203  $(247) $(239)



UNITED COMMUNITY BANKS, INC.                  
Credit Quality                  
(in thousands)                  
   2024            
  Third
Quarter		 Second
Quarter		 First
Quarter		            
NONACCRUAL LOANS                  
Owner occupied RE $7,783  $4,820  $2,310             
Income producing RE  31,222   34,285   29,186             
Commercial & industrial  28,856   17,335   20,134             
Commercial construction  7,356   6,854   1,862             
Equipment financing  9,123   8,341   8,829             
Total commercial  84,340   71,635   62,321             
Residential mortgage  21,851   18,473   16,569             
Home equity  4,111   3,779   4,984             
Residential construction  118   163   1,244             
Manufactured housing  1,808   20,356   19,797             
Consumer  152   72   54             
Total nonaccrual loans  112,380   114,478   104,969             
OREO and repossessed assets  2,580   2,244   2,261             
Total NPAs $114,960  $116,722  $107,230             


   2024 
  Third Quarter Second Quarter First 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 (RECOVERIES) BY CATEGORY              
Owner occupied RE $(184)  (0.02)% $163   0.02% $202   0.02%
Income producing RE  1,409   0.13   2,968   0.29   205   0.02 
Commercial & industrial  4,577   0.79   1,281   0.22   3,906   0.65 
Commercial construction  36   0.01   (48)  (0.01)  20   — 
Equipment financing  5,268   1.32   5,502   1.42   6,362   1.66 
Total commercial  11,106   0.33   9,866   0.30   10,695   0.32 
Residential mortgage  32   —   (107)  (0.01)  (16)  — 
Home equity  36   0.01   (27)  (0.01)  (54)  (0.02)
Residential construction  111   0.22   26   0.04   119   0.17 
Manufactured housing  11,556   28.51   1,150   1.43   1,569   1.90 
Consumer  810   1.74   706   1.57   595   1.33 
Total $23,651   0.52  $11,614   0.26  $12,908   0.28 
               
(1)Annualized.              



UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data) September 30,
2024		 December 31,
2023
ASSETS    
Cash and due from banks $202,644  $200,781 
Interest-bearing deposits in banks  537,395   803,094 
Cash and cash equivalents  740,039   1,003,875 
Debt securities available-for-sale  4,023,455   3,331,084 
Debt securities held-to-maturity (fair value $2,060,729 and $2,095,620, respectively)  2,401,877   2,490,848 
Loans held for sale  49,800   33,008 
Loans and leases held for investment  17,964,099   18,318,755 
Allowance for credit losses - loans and leases  (205,290)  (208,071)
Loans and leases, net  17,758,809   18,110,684 
Premises and equipment, net  396,696   378,421 
Bank owned life insurance  345,703   345,371 
Goodwill and other intangible assets, net  975,117   990,087 
Other assets  681,636   613,873 
Total assets $27,373,132  $27,297,251 
LIABILITIES AND SHAREHOLDERS' EQUITY    
Liabilities:    
Deposits:    
Noninterest-bearing demand $6,222,518  $6,534,307 
NOW and interest-bearing demand  5,951,900   6,155,193 
Money market  6,301,956   5,600,587 
Savings  1,113,168   1,207,807 
Time  3,490,399   3,649,498 
Brokered  173,161   163,219 
Total deposits  23,253,102   23,310,611 
Long-term debt  316,363   324,823 
Accrued expenses and other liabilities  396,987   400,292 
Total liabilities  23,966,452   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,
119,282,762 and 119,010,319 shares issued and outstanding, respectively		  119,283   119,010 
Common stock issuable; 588,296 and 620,108 shares, respectively  12,661   13,110 
Capital surplus  2,707,266   2,699,112 
Retained earnings  668,965   581,219 
Accumulated other comprehensive loss  (189,761)  (239,192)
Total shareholders' equity  3,406,680   3,261,525 
Total liabilities and shareholders' equity $27,373,132  $27,297,251 



UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in thousands, except per share data)  2024   2023   2024   2023 
Interest revenue:        
Loans, including fees $291,574  $273,781  $867,152  $760,696 
Investment securities, including tax exempt of $1,713, $1,722, $5,133 and $5,563, respectively  52,997   44,729   149,496   125,775 
Deposits in banks and short-term investments  4,515   4,637   16,131   11,938 
Total interest revenue  349,086   323,147   1,032,779   898,409 
         
Interest expense:        
Deposits:        
NOW and interest-bearing demand  43,401   35,613   133,522   80,809 
Money market  56,874   46,884   160,883   105,430 
Savings  672   868   2,065   2,108 
Time  35,202   33,368   107,925   75,464 
Deposits  136,149   116,733   404,395   263,811 
Short-term borrowings  27   189   87   3,186 
Federal Home Loan Bank advances  —   —   —   5,761 
Long-term debt  3,724   3,669   11,262   11,339 
Total interest expense  139,900   120,591   415,744   284,097 
Net interest revenue  209,186   202,556   617,035   614,312 
Provision for credit losses  14,428   30,268   39,562   74,804 
Net interest revenue after provision for credit losses  194,758   172,288   577,473   539,508 
         
Noninterest income:        
Service charges and fees  10,488   10,315   30,372   28,791 
Mortgage loan gains and other related fees  3,520   6,159   17,830   17,264 
Wealth management fees  6,338   6,451   19,037   17,775 
Net (losses) gains from sales of other loans  (25,700)  2,688   (22,867)  6,909 
Lending and loan servicing fees  3,512   2,985   11,050   9,979 
Securities losses, net  —   —   —   (1,644)
Other  9,933   3,379   28,812   19,499 
Total noninterest income  8,091   31,977   84,234   98,573 
Total revenue  202,849   204,265   661,707   638,081 
         
Noninterest expenses:        
Salaries and employee benefits  83,533   81,173   254,336   236,121 
Communications and equipment  12,626   10,902   36,534   31,654 
Occupancy  11,311   10,941   33,466   31,024 
Advertising and public relations  2,041   2,251   6,401   6,914 
Postage, printing and supplies  2,477   2,386   7,376   7,305 
Professional fees  6,432   7,006   18,464   19,670 
Lending and loan servicing expense  2,227   2,697   6,068   7,546 
Outside services - electronic banking  4,433   2,561   10,163   8,646 
FDIC assessments and other regulatory charges  5,003   4,314   17,036   12,457 
Amortization of intangibles  3,528   4,171   11,209   11,120 
Merger-related and other charges  2,176   9,168   6,420   21,444 
Other  7,278   6,904   27,638   22,785 
Total noninterest expenses  143,065   144,474   435,111   416,686 
Income before income taxes  59,784   59,791   226,596   221,395 
Income tax expense  12,437   11,925   50,003   47,941 
Net income  47,347   47,866   176,593   173,454 
Preferred stock dividends, net of discount on repurchases  1,573   832   4,719   4,270 
Earnings allocated to participating securities  272   259   988   939 
Net income available to common shareholders $45,502  $46,775  $170,886  $168,245 
         
Net income per common share:        
Basic $0.38  $0.39  $1.43  $1.44 
Diluted  0.38   0.39   1.43   1.44 
Weighted average common shares outstanding:        
Basic  119,818   119,506   119,736   116,925 
Diluted  119,952   119,624   119,827   117,084 



UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
   2024   2023 
(dollars in thousands, fully taxable equivalent (FTE)) Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:            
Interest-earning assets:            
Loans, net of unearned income (FTE)(1)(2) $18,051,741  $291,164   6.42% $18,055,402  $273,800   6.02%
Taxable securities(3)  6,182,164   51,284   3.32   5,933,708   43,007   2.90 
Tax-exempt securities (FTE)(1)(3)  361,359   2,292   2.54   368,148   2,313   2.51 
Federal funds sold and other interest-earning assets  505,792   5,440   4.28   538,039   5,093   3.76 
Total interest-earning assets (FTE)  25,101,056   350,180   5.55   24,895,297   324,213   5.17 
             
Noninterest-earning assets:            
Allowance for credit losses  (215,008)      (209,472)    
Cash and due from banks  206,995       225,831     
Premises and equipment  399,262       367,217     
Other assets(3)  1,615,468       1,568,824     
Total assets $27,107,773      $26,847,697     
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW and interest-bearing demand $5,797,845   43,401   2.98  $5,285,513   35,613   2.67 
Money market  6,342,455   56,874   3.57   5,622,355   46,884   3.31 
Savings  1,126,774   672   0.24   1,301,047   868   0.26 
Time  3,465,980   34,560   3.97   3,473,191   31,072   3.55 
Brokered time deposits  50,364   642   5.07   209,119   2,296   4.36 
Total interest-bearing deposits  16,783,418   136,149   3.23   15,891,225   116,733   2.91 
Federal funds purchased and other borrowings  1,899   27   5.66   44,164   189   1.70 
Federal Home Loan Bank advances  11   —   —   —   —   — 
Long-term debt  323,544   3,724   4.58   324,770   3,669   4.48 
Total borrowed funds  325,454   3,751   4.59   368,934   3,858   4.15 
Total interest-bearing liabilities  17,108,872   139,900   3.25   16,260,159   120,591   2.94 
             
Noninterest-bearing liabilities:            
Noninterest-bearing deposits  6,239,926       6,916,272     
Other liabilities  391,574       435,592     
Total liabilities  23,740,372       23,612,023     
Shareholders' equity  3,367,401       3,235,674     
Total liabilities and shareholders' equity $27,107,773      $26,847,697     
             
Net interest revenue (FTE)   $210,280      $203,622   
Net interest-rate spread (FTE)      2.30%      2.23%
Net interest margin (FTE)(4)      3.33%      3.24%

(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 $1.09 million and $1.07 million, respectively, for the three months ended September 30, 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 $295 million in 2024 and $430 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.



UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
   2024   2023 
(dollars in thousands, fully taxable equivalent (FTE)) Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:            
Interest-earning assets:            
Loans, net of unearned income (FTE)(1)(2) $18,187,790  $866,502   6.36% $17,377,210  $760,802   5.85%
Taxable securities(3)  5,988,368   144,363   3.21   5,982,615   120,212   2.68 
Tax-exempt securities (FTE)(1)(3)  363,692   6,876   2.52   386,499   7,470   2.58 
Federal funds sold and other interest-earning assets  559,786   18,256   4.36   490,703   13,103   3.57 
Total interest-earning assets (FTE)  25,099,636   1,035,997   5.51   24,237,027   901,587   4.97 
             
Non-interest-earning assets:            
Allowance for loan losses  (214,372)      (186,428)    
Cash and due from banks  210,982       249,411     
Premises and equipment  392,561       347,514     
Other assets(3)  1,613,118       1,518,503     
Total assets $27,101,925      $26,166,027     
             
Liabilities and Shareholders' Equity:            
Interest-bearing liabilities:            
Interest-bearing deposits:            
NOW and interest-bearing demand $5,913,566   133,522   3.02  $4,891,214   80,809   2.21 
Money market  6,092,649   160,883   3.53   5,349,265   105,430   2.64 
Savings  1,159,982   2,065   0.24   1,341,033   2,108   0.21 
Time  3,535,343   106,199   4.01   2,936,873   65,856   3.00 
Brokered time deposits  50,343   1,726   4.58   280,293   9,608   4.58 
Total interest-bearing deposits  16,751,883   404,395   3.22   14,798,678   263,811   2.38 
Federal funds purchased and other borrowings  2,001   87   5.81   98,884   3,186   4.31 
Federal Home Loan Bank advances  5   —   —   166,355   5,761   4.63 
Long-term debt  324,414   11,262   4.64   324,737   11,339   4.67 
Total borrowed funds  326,420   11,349   4.64   589,976   20,286   4.60 
Total interest-bearing liabilities  17,078,303   415,744   3.25   15,388,654   284,097   2.47 
             
Noninterest-bearing liabilities:            
Noninterest-bearing deposits  6,306,919       7,226,096     
Other liabilities  394,323       393,048     
Total liabilities  23,779,545       23,007,798     
Shareholders' equity  3,322,380       3,158,229     
Total liabilities and shareholders' equity $27,101,925      $26,166,027     
             
Net interest revenue (FTE)   $620,253      $617,490   
Net interest-rate spread (FTE)      2.26%      2.50%
Net interest margin (FTE)(4)      3.30%      3.41%
             

(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 $3.22 million and $3.18 million, respectively, for the nine months ended September 30, 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 $320 million in 2024 and $413 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 September 30, 2024, United Community Banks, Inc. had $27.4 billion in assets, 202 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 2023, United was named by American Banker as one of the “Best Banks to Work For” for the seventh 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. 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 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


FAQ

What was United Community Banks (UCB) earnings per share in Q3 2024?

UCB reported diluted earnings per share of $0.38 on a GAAP basis and $0.57 on an operating basis in Q3 2024.

How much did UCB lose on the manufactured housing loan sale in Q3 2024?

UCB incurred a $21.4 million after-tax loss ($0.18 per share) from the sale of $318 million in manufactured housing loans.

What was UCB's net interest margin in Q3 2024?

UCB's net interest margin was 3.33% in Q3 2024, down 4 basis points from the previous quarter.

How much did UCB's customer deposits grow in Q3 2024?

Customer deposits increased by $262 million, representing a 5% annualized growth rate.

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United Community Banks, Inc.

NYSE:UCB

UCB Rankings

#1464 Ranked by Market Cap
#1047 Ranked by Dividends

UCB Latest News

Nov 14, 2024
United Community Banks, Inc. Announces Quarterly Cash Dividend on Common and Preferred Stock
Nov 13, 2024
United Community earns 8th consecutive recognition as one of the Best Banks to Work For
Sep 4, 2024
United Community Banks, Inc. Names Industry Veteran Sally Pope Davis to Board of Directors
Sep 3, 2024
United Community Banks, Inc. and 21st Mortgage Corporation Close Sale of Manufactured Housing Loan Portfolio
Aug 15, 2024
United Community Banks, Inc. Announces Increased Quarterly Cash Dividend and Larger Share Repurchase Program on Common Stock and Declares Preferred Stock Dividend

UCB Stock Data

3.89B
119.29M
0.53%
83.44%
1.4%
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