United Community Banks, Inc. Reports Third Quarter Results
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.
- 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%
- 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
- 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
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% vs0.26% last quarter - Pressure on net interest margin in a challenging rate environment
However, strong capital levels and liquidity provide good loss absorption capacity. The
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
On an operating basis, United’s diluted earnings per share of
United’s return on assets was
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
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
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 up27% on an operating basis; compared to second quarter 2024, EPS down30% on a GAAP basis and down2% 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% , or1.01% 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% , or57.4% 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, up4% 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 expense | 139,900 | 138,265 | 137,579 | 135,245 | 120,591 | 415,744 | 284,097 | ||||||||||||||||||||||||||||
| Net interest revenue | 209,186 | 208,700 | 199,149 | 203,453 | 202,556 | 3 | % | 617,035 | 614,312 | — | % | ||||||||||||||||||||||||
| Provision for credit losses | 14,428 | 12,235 | 12,899 | 14,626 | 30,268 | 39,562 | 74,804 | ||||||||||||||||||||||||||||
| Noninterest income | 8,091 | 36,556 | 39,587 | (23,090 | ) | 31,977 | (75 | ) | 84,234 | 98,573 | (15 | ) | |||||||||||||||||||||||
| Total revenue | 202,849 | 233,021 | 225,837 | 165,737 | 204,265 | (1 | ) | 661,707 | 638,081 | 4 | |||||||||||||||||||||||||
| Noninterest expenses | 143,065 | 147,044 | 145,002 | 154,587 | 144,474 | (1 | ) | 435,111 | 416,686 | 4 | |||||||||||||||||||||||||
| Income before income tax expense | 59,784 | 85,977 | 80,835 | 11,150 | 59,791 | — | 226,596 | 221,395 | 2 | ||||||||||||||||||||||||||
| Income tax expense | 12,437 | 19,362 | 18,204 | (2,940 | ) | 11,925 | 4 | 50,003 | 47,941 | 4 | |||||||||||||||||||||||||
| Net income | 47,347 | 66,615 | 62,631 | 14,090 | 47,866 | (1 | ) | 176,593 | 173,454 | 2 | |||||||||||||||||||||||||
| Non-operating items | 29,385 | 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 declared | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 4 | 0.70 | 0.69 | 1 | ||||||||||||||||||||||||||
| Book value | 27.68 | 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 - GAAP | 65.51 | 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 assets | 12.45 | 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 - loans | 205,290 | 213,022 | 210,934 | 208,071 | 201,557 | 2 | 205,290 | 201,557 | 2 | ||||||||||||||||||||||||||
| Allowance for credit losses - total | 215,517 | 224,740 | 224,119 | 224,128 | 219,624 | (2 | ) | 215,517 | 219,624 | (2 | ) | ||||||||||||||||||||||||
| Net charge-offs | 23,651 | 11,614 | 12,908 | 10,122 | 26,638 | 48,173 | 42,121 | ||||||||||||||||||||||||||||
| Allowance for credit losses - loans to loans | 1.14 | % | 1.17 | % | 1.15 | % | 1.14 | % | 1.11 | % | 1.14 | % | 1.11 | % | |||||||||||||||||||||
| Allowance for credit losses - total to loans | 1.20 | 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 assets | 0.42 | 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 securities | 6,425 | 6,038 | 5,859 | 5,822 | 5,701 | 13 | 6,425 | 5,701 | 13 | ||||||||||||||||||||||||||
| Total assets | 27,373 | 27,057 | 27,365 | 27,297 | 26,869 | 2 | 27,373 | 26,869 | 2 | ||||||||||||||||||||||||||
| Deposits | 23,253 | 22,982 | 23,332 | 23,311 | 22,858 | 2 | 23,253 | 22,858 | 2 | ||||||||||||||||||||||||||
| Shareholders’ equity | 3,407 | 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 loans | 27,209 | — | — | — | — | 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 loans | 27,209 | — | — | — | — | 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 charges | 2,176 | 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 expense | 12,437 | 19,362 | 18,204 | (2,940 | ) | 11,925 | 50,003 | 47,941 | |||||||||||||||||||
| Provision for credit losses | 14,428 | 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 loans | 0.18 | — | — | — | — | 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 charges | 0.01 | 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 loans | 2.43 | — | — | — | — | 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 charges | 0.19 | 0.20 | 0.19 | 0.50 | 0.82 | 0.19 | 0.66 | ||||||||||||||||||||
| Return on common equity - operating | 7.82 | 8.12 | 7.34 | 7.27 | 6.14 | 7.76 | 7.35 | ||||||||||||||||||||
| Effect of goodwill and other intangibles | 3.35 | 3.56 | 3.34 | 3.31 | 2.89 | 3.42 | 3.30 | ||||||||||||||||||||
| Return on tangible common equity - operating | 11.17 | % | 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 loans | 0.31 | — | — | — | — | 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 charges | 0.03 | 0.02 | 0.03 | 0.06 | 0.11 | 0.02 | 0.09 | ||||||||||||||||||||
| Return on assets - operating | 1.01 | % | 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) expense | 0.19 | 0.29 | 0.27 | (0.04 | ) | 0.18 | 0.25 | 0.25 | |||||||||||||||||||
| Provision for credit losses | 0.21 | 0.18 | 0.19 | 0.21 | 0.45 | 0.19 | 0.38 | ||||||||||||||||||||
| Loss on sale of manufactured housing loans | 0.40 | — | — | — | — | 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 charges | 0.03 | 0.03 | 0.04 | 0.08 | 0.13 | 0.03 | 0.11 | ||||||||||||||||||||
| Return on assets - pre-tax pre-provision - operating | 1.50 | % | 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 - operating | 57.37 | % | 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 assets | 8.93 | % | 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 | 2,401,877 | 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; outstanding; | 88,266 | 88,266 | ||||||
| Common stock, 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 | 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
(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
(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
(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
(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
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
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