United Community Banks, Inc. Reports Fourth Quarter Results
- Net income for the fourth quarter was $14.1 million
- Diluted earnings per share for the quarter was $0.11
- Deposits grew by 8% annualized and loans grew at a 2.5% annualized rate
- Return on assets was 0.18% and 0.92% on an operating basis
- Net interest margin decreased to 3.19%
- Average yield on interest-earning assets increased to 5.31%
- Closely monitoring potential changes in the economic environment for 2024
- Diluted earnings per share decreased by 72% from the third quarter of 2023 and 85% from the fourth quarter of 2022
- Net interest margin decreased by 5 basis points to 3.19%
Insights
The reported net income and diluted earnings per share (EPS) for United Community Banks, Inc. reflect a notable decrease from both the previous quarter and the same quarter of the prior year. The significant drop in EPS, by 72% and 85% respectively, highlights potential challenges the company faced during this period. Despite this, the operational EPS saw an improvement, suggesting some non-recurring charges impacted the reported earnings.
Deposit and loan growth rates are modest but positive indicators of the bank's underlying business momentum. The growth in interest-bearing assets, which helped offset lower margins, led to an increase in net interest revenue. However, the decrease in the net interest margin by 5 basis points compared to the previous quarter indicates a tightening in the profitability of the bank's lending activities. The operating return on assets of 0.92% and the increase in tangible common equity to 8.36% are solid figures that demonstrate the bank's financial stability and prudent risk management.
Furthermore, the restructuring of the bond portfolio to mitigate interest rate volatility is a strategic move that could enhance future earnings. This suggests a proactive approach to risk management in a fluctuating rate environment. As such, stakeholders should monitor the effectiveness of this strategy over the coming quarters.
The banking sector is sensitive to interest rate changes and United Community Banks' efforts to restructure its bond portfolio indicate an adaptive response to the current economic climate. The bank's focus on maintaining a strong balance sheet while investing in growth is a strategic balance of risk and opportunity. The mention of reduced reliance on high-cost brokered deposits is a positive move toward cost efficiency and could be well received by investors looking for prudent financial management.
Asset quality and credit performance are critical factors for banks, especially when navigating uncertain economic conditions. The low levels of net charge-offs, excluding Navitas, suggest a healthy loan portfolio and effective credit risk controls. However, investors should remain vigilant about the broader economic indicators that could impact credit performance in the future.
The bank's solid asset quality, with nonperforming assets stable at 34 basis points of total assets, aligns with industry norms and does not raise immediate red flags. Nonetheless, the financial sector is currently under pressure due to macroeconomic uncertainties and any signs of deteriorating asset quality in the industry could have significant implications for United Community Banks' future performance.
The banking industry operates within the broader context of the economy and United Community Banks' performance is indicative of the challenges faced by financial institutions in a period of interest rate volatility. The Federal Reserve's monetary policy, aimed at controlling inflation, has led to rising interest rates, which can squeeze net interest margins for banks. United's strategy to reduce exposure to interest rate volatility is a direct response to this macroeconomic challenge.
Deposits growth outpacing loan growth can be interpreted as a sign of consumer and business confidence, as well as effective market penetration by the bank. However, the upward drift in the cost of deposits indicates that the competitive landscape for attracting deposits is intensifying, which could lead to higher costs for the bank in the future.
Investors should consider the potential long-term effects of the current economic environment on the bank's performance. While the short-term measures such as bond portfolio restructuring can provide some relief, the bank's ability to navigate a potential economic downturn will be crucial. The CEO's statement about monitoring for changes in the economic environment suggests that the bank is aware of these risks and is preparing for various scenarios.
GREENVILLE, S.C., Jan. 24, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced net income for the fourth quarter of
On an operating basis, diluted earnings per share of
For the quarter, United’s return on assets was
Chairman and CEO Lynn Harton stated, “Our focus continues to be on both maintaining a strong balance sheet and investing in growth as we continue to build the company. This quarter, we entered into a bond portfolio restructuring transaction to reduce our exposure to interest rate volatility in this uncertain environment. This will have the additional advantage of increasing our earnings in 2024. In our core banking operations, we continue to be pleased with the ability of our teams to grow our book of business. In the fourth quarter, strong deposit growth allowed us to reduce high cost brokered deposits and more than fund loan growth. While the cost of deposits continued to drift upward, the pace of margin compression has slowed. Asset quality remained solid with net charge-offs for the bank, excluding Navitas, at low levels. Looking into 2024, we expect broader credit performance to remain strong, but are closely monitoring for potential changes in both the economic environment overall and specifically in our markets.”
United’s net interest margin decreased by 5 basis points to
Mr. Harton concluded, “We are excited and optimistic about 2024. Economic conditions remain strong in our markets, though we continue to be cautious in our underwriting and portfolio management given the inherent uncertainty in the environment. Our teams continue to be focused on leading our markets in customer service, knowing that it is our connections with our customers and communities that drive our success. In 2023, including recently in the fourth quarter, we added a new member to our Board of Directors, and added new market leaders, new commercial bankers and new line-of-business leaders. We also expanded our market reach and service capabilities with new locations across our footprint. In November, United was named one of the “Best Banks to Work For” by American Banker for the seventh consecutive year, an accolade that underscores our belief that we are a great place to work for great people. We are in the final phases of refreshing our corporate logo and brand across our franchise. Our commitment to investing in our people, technology and customers’ needs with a culture of caring will remain the same as we continue to grow.”
2023 Financial Highlights:
- Completed a successful year with strong, high-quality loan and deposit growth and completed acquisitions in high-growth markets in Alabama, the Florida panhandle and Miami, which were all strategic priorities
- The fourth quarter bond portfolio restructuring transaction resulted in a pre-tax loss of
$52 million and the FDIC special assessment was$10 million , which reduced GAAP and operating EPS by approximately$0.39 - Full-year EPS of
$1.54 , a decrease of39% compared to 2022; full year operating EPS of$2.11 , a decrease of21% from 2022 - Return on assets of
0.68% , or0.94% , on an operating basis - Pre-tax, pre-provision return on assets of
1.53% on an operating basis - Return on common equity of
5.34% , or7.33% , on an operating basis - Return on tangible common equity of
10.6% on an operating basis - A provision for credit losses of
$89.4 million compared to a provision for credit losses of$63.9 million in 2022, with both periods including a provision establishing an initial allowance for acquired banks - Strong loan growth of
$3.0 billion or$972 million , excluding loans acquired from acquired banks - Core transaction deposits were up
$796 million compared to 2022; excluding acquired banks, 2023 core transaction deposits were down$984 million , or6% - Net interest margin of
3.35% was down 3 basis points from last year primarily due to increased deposit costs - Noninterest income was down
$62.2 million primarily due to the bond portfolio restructuring transaction - Excluding the bond portfolio restructuring transaction, noninterest income was down
$4.8 million primarily due to a decline in mortgage fees, as higher rates led to lower demand and business volume - The efficiency ratio of
60.1% , or56.2% on an operating basis, increased, primarily driven by higher deposit rates and a compressing NIM - Net charge-offs of
$52.2 million , or0.30% of average total loans, were up from the$9.65 million of net charge-offs in 2022
Fourth Quarter 2023 Financial Highlights:
- Net income of
$14.1 million and pre-tax, pre-provision income of$25.8 million ; operating net income of$64.8 million - EPS decreased by
85% compared to last year on a GAAP basis and29% on an operating basis; compared to third quarter 2023, EPS decreased72% on a GAAP basis and increased18% on an operating basis - The bond portfolio restructuring transaction and the FDIC special assessment reduced GAAP and operating EPS by approximately
$0.38 - Return on assets of
0.18% , and0.92% on an operating basis - Pre-tax, pre-provision return on assets of
1.33% excluding non-operating items - Return on common equity of
1.4% , or7.3% when excluding non-operating items - Return on tangible common equity of
10.6% on an operating basis - Loan production of
$1.4 billion , resulting in loan growth of2.5% annualized for the quarter - Total deposits, excluding brokered deposits, were up
$504 million , or8.9% annualized, from last quarter, driven by seasonal increases in public funds - Net interest margin of
3.19% was down 5 basis points from the third quarter due to increased deposit costs - Mortgage closings of
$204 million compared to$253 million a year ago; mortgage rate locks of$223 million compared to$364 million a year ago - Noninterest income was down
$55.1 million , primarily due to the pre-tax loss of$51.7 million resulting from the bond portfolio restructuring transaction - Excluding the bond portfolio restructuring transaction, noninterest income was down
$3.4 million from third quarter primarily due to a seasonal decline in mortgage fees - Noninterest expenses increased
$10.1 million compared to the third quarter mostly due to the FDIC special assessment of$10.0 million - Efficiency ratio of
66.3% , or59.6% on an operating basis, up from third quarter largely driven by increased group medical insurance costs - Net charge-offs of
$10.1 million , or0.22% of average loans, down 37 basis points from the net charge-offs level experienced in the third quarter, which included a$19 million charge-off from an8.7% participation in a large, nationally syndicated credit - Nonperforming assets of
0.34% of total assets, are in line with September 30, 2023 - Quarterly common shareholder dividend of
$0.23 per share declared during the quarter, an increase of5% year-over-year
Conference Call
United will hold a conference call on Wednesday, January 24, 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/10185556/fb5d089df4. Those without internet access or who are 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 available for replay by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of United’s website at ucbi.com.
| UNITED COMMUNITY BANKS, INC. Selected Financial Information (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | Fourth Quarter 2023-2022 Change | For the Twelve Months Ended December 31, | YTD 2023-2022 Change | ||||||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2023 | 2022 | ||||||||||||||||||||||||||||
| INCOME SUMMARY | ||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 338,698 | $ | 323,147 | $ | 295,775 | $ | 279,487 | $ | 240,831 | $ | 1,237,107 | $ | 813,155 | ||||||||||||||||||||
| Interest expense | 135,245 | 120,591 | 95,489 | 68,017 | 30,943 | 419,342 | 60,798 | |||||||||||||||||||||||||||
| Net interest revenue | 203,453 | 202,556 | 200,286 | 211,470 | 209,888 | (3 | )% | 817,765 | 752,357 | 9 | % | |||||||||||||||||||||||
| Provision for credit losses | 14,626 | 30,268 | 22,753 | 21,783 | 19,831 | (26 | ) | 89,430 | 63,913 | 40 | ||||||||||||||||||||||||
| Noninterest income | (23,090 | ) | 31,977 | 36,387 | 30,209 | 33,354 | 75,483 | 137,707 | (45 | ) | ||||||||||||||||||||||||
| Total revenue | 165,737 | 204,265 | 213,920 | 219,896 | 223,411 | (26 | ) | 803,818 | 826,151 | (3 | ) | |||||||||||||||||||||||
| Noninterest expenses | 154,587 | 144,474 | 132,407 | 139,805 | 117,329 | 32 | 571,273 | 470,149 | 22 | |||||||||||||||||||||||||
| Income before income tax expense | 11,150 | 59,791 | 81,513 | 80,091 | 106,082 | 232,545 | 356,002 | |||||||||||||||||||||||||||
| Income tax (benefit) expense | (2,940 | ) | 11,925 | 18,225 | 17,791 | 24,632 | 45,001 | 78,530 | ||||||||||||||||||||||||||
| Net income | 14,090 | 47,866 | 63,288 | 62,300 | 81,450 | 187,544 | 277,472 | |||||||||||||||||||||||||||
| Non-operating items | 67,450 | 9,168 | 3,645 | 8,631 | 1,470 | 88,894 | 19,375 | |||||||||||||||||||||||||||
| Income tax benefit of non-operating items | (16,714 | ) | (2,000 | ) | (820 | ) | (1,955 | ) | (323 | ) | (21,489 | ) | (4,246 | ) | ||||||||||||||||||||
| Net income - operating(1) | $ | 64,826 | $ | 55,034 | $ | 66,113 | $ | 68,976 | $ | 82,597 | (22 | ) | $ | 254,949 | $ | 292,601 | (13 | ) | ||||||||||||||||
| Pre-tax pre-provision income(5) | $ | 25,776 | $ | 90,059 | $ | 104,266 | $ | 101,874 | $ | 125,913 | (80 | ) | $ | 321,975 | $ | 419,915 | (23 | ) | ||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||
| Per common share: | ||||||||||||||||||||||||||||||||||
| Diluted net income - GAAP | $ | 0.11 | $ | 0.39 | $ | 0.53 | $ | 0.52 | $ | 0.74 | (85 | ) | $ | 1.54 | $ | 2.52 | (39 | ) | ||||||||||||||||
| Diluted net income - operating(1) | 0.53 | 0.45 | 0.55 | 0.58 | 0.75 | (29 | ) | 2.11 | 2.66 | (21 | ) | |||||||||||||||||||||||
| Common stock cash dividends declared | 0.23 | 0.23 | 0.23 | 0.23 | 0.22 | 5 | 0.92 | 0.86 | 7 | |||||||||||||||||||||||||
| Book value | 26.52 | 25.87 | 25.98 | 25.76 | 24.38 | 9 | 26.52 | 24.38 | 9 | |||||||||||||||||||||||||
| Tangible book value(3) | 18.39 | 17.70 | 17.83 | 17.59 | 17.13 | 7 | 18.39 | 17.13 | 7 | |||||||||||||||||||||||||
| Key performance ratios: | ||||||||||||||||||||||||||||||||||
| Return on common equity - GAAP(2)(4) | 1.44 | % | 5.32 | % | 7.47 | % | 7.34 | % | 10.86 | % | 5.34 | % | 9.54 | % | ||||||||||||||||||||
| Return on common equity - operating(1)(2)(4) | 7.27 | 6.14 | 7.82 | 8.15 | 11.01 | 7.33 | 10.07 | |||||||||||||||||||||||||||
| Return on tangible common equity - operating(1)(2)(3)(4) | 10.58 | 9.03 | 11.35 | 11.63 | 15.20 | 10.63 | 14.04 | |||||||||||||||||||||||||||
| Return on assets - GAAP(4) | 0.18 | 0.68 | 0.95 | 0.95 | 1.33 | 0.68 | 1.13 | |||||||||||||||||||||||||||
| Return on assets - operating(1)(4) | 0.92 | 0.79 | 1.00 | 1.06 | 1.35 | 0.94 | 1.19 | |||||||||||||||||||||||||||
| Return on assets -pre-tax pre-provision, excluding non-operating items(1)(4)(5) | 1.33 | 1.44 | 1.65 | 1.71 | 2.09 | 1.53 | 1.80 | |||||||||||||||||||||||||||
| Net interest margin (fully taxable equivalent)(4) | 3.19 | 3.24 | 3.37 | 3.61 | 3.76 | 3.35 | 3.38 | |||||||||||||||||||||||||||
| Efficiency ratio - GAAP | 66.33 | 61.32 | 55.71 | 57.20 | 47.95 | 60.09 | 52.31 | |||||||||||||||||||||||||||
| Efficiency ratio - operating(1) | 59.57 | 57.43 | 54.17 | 53.67 | 47.35 | 56.17 | 50.16 | |||||||||||||||||||||||||||
| Equity to total assets | 11.95 | 11.85 | 11.89 | 11.90 | 11.25 | 11.95 | 11.25 | |||||||||||||||||||||||||||
| Tangible common equity to tangible assets(3) | 8.36 | 8.18 | 8.21 | 8.17 | 7.88 | 8.36 | 7.88 | |||||||||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||||||||
| Nonperforming assets (“NPAs”) | $ | 92,877 | $ | 90,883 | $ | 103,737 | $ | 73,403 | $ | 44,281 | 110 | $ | 92,877 | $ | 44,281 | 110 | ||||||||||||||||||
| Allowance for credit losses - loans | 208,071 | 201,557 | 190,705 | 176,534 | 159,357 | 31 | 208,071 | 159,357 | 31 | |||||||||||||||||||||||||
| Allowance for credit losses - total | 224,128 | 219,624 | 212,277 | 197,923 | 180,520 | 24 | 224,128 | 180,520 | 24 | |||||||||||||||||||||||||
| Net charge-offs (recoveries) | 10,122 | 26,638 | 8,399 | 7,084 | 6,611 | 52,243 | 9,654 | |||||||||||||||||||||||||||
| Allowance for credit losses - loans to loans | 1.14 | % | 1.11 | % | 1.10 | % | 1.03 | % | 1.04 | % | 1.14 | % | 1.04 | % | ||||||||||||||||||||
| Allowance for credit losses - total to loans | 1.22 | 1.21 | 1.22 | 1.16 | 1.18 | 1.22 | 1.18 | |||||||||||||||||||||||||||
| Net charge-offs to average loans(4) | 0.22 | 0.59 | 0.20 | 0.17 | 0.17 | 0.30 | 0.07 | |||||||||||||||||||||||||||
| NPAs to total assets | 0.34 | 0.34 | 0.40 | 0.28 | 0.18 | 0.34 | 0.18 | |||||||||||||||||||||||||||
| AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||
| Loans | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | $ | 15,335 | 19 | $ | 18,319 | $ | 15,335 | 19 | ||||||||||||||||||
| Investment securities | 5,822 | 5,701 | 5,914 | 5,915 | 6,228 | (7 | ) | 5,822 | 6,228 | (7 | ) | |||||||||||||||||||||||
| Total assets | 27,297 | 26,869 | 26,120 | 25,872 | 24,009 | 14 | 27,297 | 24,009 | 14 | |||||||||||||||||||||||||
| Deposits | 23,311 | 22,858 | 22,252 | 22,005 | 19,877 | 17 | 23,311 | 19,877 | 17 | |||||||||||||||||||||||||
| Shareholders’ equity | 3,262 | 3,184 | 3,106 | 3,078 | 2,701 | 21 | 3,262 | 2,701 | 21 | |||||||||||||||||||||||||
| Common shares outstanding (thousands) | 119,010 | 118,976 | 115,266 | 115,152 | 106,223 | 12 | 119,010 | 106,223 | 12 | |||||||||||||||||||||||||
| (1) | Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. |
| (2) | Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). |
| (3) | Excludes effect of acquisition related intangibles and associated amortization. |
| (4) | Annualized. |
| (5) | Excludes income tax expense and provision for credit losses. |
| UNITED COMMUNITY BANKS, INC. Non-GAAP Performance Measures Reconciliation Selected Financial Information (in thousands, except per share data) | |||||||||||||||||||||||||||
| 2023 | 2022 | Twelve Months Ended December 31, | |||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2023 | 2022 | |||||||||||||||||||||
| Net income to operating income reconciliation | |||||||||||||||||||||||||||
| Net income (GAAP) | $ | 14,090 | $ | 47,866 | $ | 63,288 | $ | 62,300 | $ | 81,450 | $ | 187,544 | $ | 277,472 | |||||||||||||
| Bond portfolio restructuring loss | 51,689 | — | — | — | — | 51,689 | — | ||||||||||||||||||||
| FDIC special assessment | 9,995 | — | — | — | — | 9,995 | — | ||||||||||||||||||||
| Merger-related and other charges | 5,766 | 9,168 | 3,645 | 8,631 | 1,470 | 27,210 | 19,375 | ||||||||||||||||||||
| Income tax benefit of non-operating items | (16,714 | ) | (2,000 | ) | (820 | ) | (1,955 | ) | (323 | ) | (21,489 | ) | (4,246 | ) | |||||||||||||
| Net income - operating | $ | 64,826 | $ | 55,034 | $ | 66,113 | $ | 68,976 | $ | 82,597 | $ | 254,949 | $ | 292,601 | |||||||||||||
| Net income to pre-tax pre-provision income reconciliation | |||||||||||||||||||||||||||
| Net income (GAAP) | $ | 14,090 | $ | 47,866 | $ | 63,288 | $ | 62,300 | $ | 81,450 | $ | 187,544 | $ | 277,472 | |||||||||||||
| Income tax (benefit) expense | (2,940 | ) | 11,925 | 18,225 | 17,791 | 24,632 | 45,001 | 78,530 | |||||||||||||||||||
| Provision for credit losses | 14,626 | 30,268 | 22,753 | 21,783 | 19,831 | 89,430 | 63,913 | ||||||||||||||||||||
| Pre-tax pre-provision income | $ | 25,776 | $ | 90,059 | $ | 104,266 | $ | 101,874 | $ | 125,913 | $ | 321,975 | $ | 419,915 | |||||||||||||
| Diluted income per common share reconciliation | |||||||||||||||||||||||||||
| Diluted income per common share (GAAP) | $ | 0.11 | $ | 0.39 | $ | 0.53 | $ | 0.52 | $ | 0.74 | $ | 1.54 | $ | 2.52 | |||||||||||||
| Bond portfolio restructuring loss | 0.32 | — | — | — | — | 0.33 | — | ||||||||||||||||||||
| FDIC special assessment | 0.06 | — | — | — | — | 0.06 | — | ||||||||||||||||||||
| Merger-related and other charges | 0.04 | 0.06 | 0.02 | 0.06 | 0.01 | 0.18 | 0.14 | ||||||||||||||||||||
| Diluted income per common share - operating | $ | 0.53 | $ | 0.45 | $ | 0.55 | $ | 0.58 | $ | 0.75 | $ | 2.11 | $ | 2.66 | |||||||||||||
| Book value per common share reconciliation | |||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 26.52 | $ | 25.87 | $ | 25.98 | $ | 25.76 | $ | 24.38 | $ | 26.52 | $ | 24.38 | |||||||||||||
| Effect of goodwill and other intangibles | (8.13 | ) | (8.17 | ) | (8.15 | ) | (8.17 | ) | (7.25 | ) | (8.13 | ) | (7.25 | ) | |||||||||||||
| Tangible book value per common share | $ | 18.39 | $ | 17.70 | $ | 17.83 | $ | 17.59 | $ | 17.13 | $ | 18.39 | $ | 17.13 | |||||||||||||
| Return on tangible common equity reconciliation | |||||||||||||||||||||||||||
| Return on common equity (GAAP) | 1.44 | % | 5.32 | % | 7.47 | % | 7.34 | % | 10.86 | % | 5.34 | % | 9.54 | % | |||||||||||||
| Bond portfolio restructuring loss | 4.47 | — | — | — | — | 1.15 | — | ||||||||||||||||||||
| FDIC special assessment | 0.86 | — | — | — | — | 0.22 | — | ||||||||||||||||||||
| Merger-related and other charges | 0.50 | 0.82 | 0.35 | 0.81 | 0.15 | 0.62 | 0.53 | ||||||||||||||||||||
| Return on common equity - operating | 7.27 | 6.14 | 7.82 | 8.15 | 11.01 | 7.33 | 10.07 | ||||||||||||||||||||
| Effect of goodwill and other intangibles | 3.31 | 2.89 | 3.53 | 3.48 | 4.19 | 3.30 | 3.97 | ||||||||||||||||||||
| Return on tangible common equity - operating | 10.58 | % | 9.03 | % | 11.35 | % | 11.63 | % | 15.20 | % | 10.63 | % | 14.04 | % | |||||||||||||
| Return on assets reconciliation | |||||||||||||||||||||||||||
| Return on assets (GAAP) | 0.18 | % | 0.68 | % | 0.95 | % | 0.95 | % | 1.33 | % | 0.68 | % | 1.13 | % | |||||||||||||
| Bond portfolio restructuring loss | 0.57 | — | — | — | — | 0.15 | — | ||||||||||||||||||||
| FDIC special assessment | 0.11 | — | — | — | — | 0.03 | — | ||||||||||||||||||||
| Merger-related and other charges | 0.06 | 0.11 | 0.05 | 0.11 | 0.02 | 0.08 | 0.06 | ||||||||||||||||||||
| Return on assets - operating | 0.92 | % | 0.79 | % | 1.00 | % | 1.06 | % | 1.35 | % | 0.94 | % | 1.19 | % | |||||||||||||
| Return on assets to return on assets- pre-tax pre-provision reconciliation | |||||||||||||||||||||||||||
| Return on assets (GAAP) | 0.18 | % | 0.68 | % | 0.95 | % | 0.95 | % | 1.33 | % | 0.68 | % | 1.13 | % | |||||||||||||
| Income tax (benefit) expense | (0.04 | ) | 0.18 | 0.29 | 0.29 | 0.41 | 0.17 | 0.32 | |||||||||||||||||||
| Provision for credit losses | 0.21 | 0.45 | 0.35 | 0.34 | 0.33 | 0.34 | 0.27 | ||||||||||||||||||||
| Bond portfolio restructuring loss | 0.75 | — | — | — | — | 0.20 | — | ||||||||||||||||||||
| FDIC special assessment | 0.15 | — | — | — | — | 0.04 | — | ||||||||||||||||||||
| Merger-related and other charges | 0.08 | 0.13 | 0.06 | 0.13 | 0.02 | 0.10 | 0.08 | ||||||||||||||||||||
| Return on assets - pre-tax pre-provision, excluding non-operating items | 1.33 | % | 1.44 | % | 1.65 | % | 1.71 | % | 2.09 | % | 1.53 | % | 1.80 | % | |||||||||||||
| Efficiency ratio reconciliation | |||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 66.33 | % | 61.32 | % | 55.71 | % | 57.20 | % | 47.95 | % | 60.09 | % | 52.31 | % | |||||||||||||
| FDIC special assessment | (4.29 | ) | — | — | — | — | (1.05 | ) | — | ||||||||||||||||||
| Merger-related and other charges | (2.47 | ) | (3.89 | ) | (1.54 | ) | (3.53 | ) | (0.60 | ) | (2.87 | ) | (2.15 | ) | |||||||||||||
| Efficiency ratio - operating | 59.57 | % | 57.43 | % | 54.17 | % | 53.67 | % | 47.35 | % | 56.17 | % | 50.16 | % | |||||||||||||
| Tangible common equity to tangible assets reconciliation | |||||||||||||||||||||||||||
| Equity to total assets (GAAP) | 11.95 | % | 11.85 | % | 11.89 | % | 11.90 | % | 11.25 | % | 11.95 | % | 11.25 | % | |||||||||||||
| Effect of goodwill and other intangibles | (3.27 | ) | (3.33 | ) | (3.31 | ) | (3.36 | ) | (2.97 | ) | (3.27 | ) | (2.97 | ) | |||||||||||||
| Effect of preferred equity | (0.32 | ) | (0.34 | ) | (0.37 | ) | (0.37 | ) | (0.40 | ) | (0.32 | ) | (0.40 | ) | |||||||||||||
| Tangible common equity to tangible assets | 8.36 | % | 8.18 | % | 8.21 | % | 8.17 | % | 7.88 | % | 8.36 | % | 7.88 | % | |||||||||||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||
| Loan Portfolio Composition at Period-End | ||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||
| 2023 | 2022 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||||||||||
| LOANS BY CATEGORY | ||||||||||||||||||||||
| Owner occupied commercial RE | $ | 3,264 | $ | 3,279 | $ | 3,111 | $ | 3,141 | $ | 2,735 | $ | (15 | ) | $ | 529 | |||||||
| Income producing commercial RE | 4,264 | 4,130 | 3,670 | 3,611 | 3,262 | 134 | 1002 | |||||||||||||||
| Commercial & industrial | 2,411 | 2,504 | 2,550 | 2,442 | 2,252 | (93 | ) | 159 | ||||||||||||||
| Commercial construction | 1,860 | 1,850 | 1,739 | 1,806 | 1,598 | 10 | 262 | |||||||||||||||
| Equipment financing | 1,543 | 1,534 | 1,510 | 1,447 | 1,374 | 9 | 169 | |||||||||||||||
| Total commercial | 13,342 | 13,297 | 12,580 | 12,447 | 11,221 | 45 | 2,121 | |||||||||||||||
| Residential mortgage | 3,199 | 3,043 | 2,905 | 2,756 | 2,355 | 156 | 844 | |||||||||||||||
| Home equity lines of credit | 959 | 941 | 927 | 930 | 850 | 18 | 109 | |||||||||||||||
| Residential construction | 302 | 399 | 463 | 492 | 443 | (97 | ) | (141 | ) | |||||||||||||
| Manufactured housing | 336 | 343 | 340 | 326 | 317 | (7 | ) | 19 | ||||||||||||||
| Consumer | 181 | 180 | 180 | 174 | 149 | 1 | 32 | |||||||||||||||
| Total loans | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | $ | 15,335 | $ | 116 | $ | 2,984 | ||||||||
| LOANS BY STATE | ||||||||||||||||||||||
| Georgia | $ | 4,357 | $ | 4,321 | $ | 4,281 | $ | 4,177 | $ | 4,051 | $ | 36 | $ | 306 | ||||||||
| South Carolina | 2,780 | 2,801 | 2,750 | 2,672 | 2,587 | (21 | ) | 193 | ||||||||||||||
| North Carolina | 2,492 | 2,445 | 2,355 | 2,257 | 2,186 | 47 | 306 | |||||||||||||||
| Tennessee | 2,244 | 2,314 | 2,387 | 2,458 | 2,507 | (70 | ) | (263 | ) | |||||||||||||
| Florida | 2,442 | 2,318 | 1,708 | 1,745 | 1,308 | 124 | 1,134 | |||||||||||||||
| Alabama | 1,082 | 1,070 | 1,062 | 1,029 | — | 12 | 1,082 | |||||||||||||||
| Commercial Banking Solutions | 2,922 | 2,934 | 2,852 | 2,787 | 2,696 | (12 | ) | 226 | ||||||||||||||
| Total loans | $ | 18,319 | $ | 18,203 | $ | 17,395 | $ | 17,125 | $ | 15,335 | $ | 116 | $ | 2,984 | ||||||||
| UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| Loan Portfolio Composition at Year-End | |||||||||||||||||||
| (in millions) | |||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||
| LOANS BY CATEGORY | |||||||||||||||||||
| Owner occupied commercial RE | $ | 3,264 | $ | 2,735 | $ | 2,322 | $ | 2,090 | $ | 1,720 | |||||||||
| Income producing commercial RE | 4,264 | 3,262 | 2,601 | 2,541 | 2,008 | ||||||||||||||
| Commercial & industrial | 2,411 | 2,252 | 1,910 | 2,499 | 1,221 | ||||||||||||||
| Commercial construction | 1,860 | 1,598 | 1,015 | 967 | 976 | ||||||||||||||
| Equipment financing | 1,543 | 1,374 | 1,083 | 864 | 745 | ||||||||||||||
| Total commercial | 13,342 | 11,221 | 8,931 | 8,961 | 6,670 | ||||||||||||||
| Residential mortgage | 3,199 | 2,355 | 1,638 | 1,285 | 1,118 | ||||||||||||||
| Home equity | 959 | 850 | 694 | 697 | 661 | ||||||||||||||
| Residential construction | 302 | 443 | 359 | 281 | 236 | ||||||||||||||
| Manufactured housing | 336 | 317 | — | — | — | ||||||||||||||
| Consumer | 181 | 149 | 138 | 147 | 128 | ||||||||||||||
| Total loans | $ | 18,319 | $ | 15,335 | $ | 11,760 | $ | 11,371 | $ | 8,813 | |||||||||
| LOANS BY STATE | |||||||||||||||||||
| Georgia | $ | 4,357 | $ | 4,051 | $ | 3,778 | $ | 3,685 | $ | 3,606 | |||||||||
| South Carolina | 2,780 | 2,587 | 2,235 | 1,947 | 1,708 | ||||||||||||||
| North Carolina | 2,492 | 2,186 | 1,895 | 1,281 | 1,156 | ||||||||||||||
| Tennessee | 2,244 | 2,507 | 373 | 415 | 421 | ||||||||||||||
| Florida | 2,442 | 1,308 | 1,148 | 1,435 | — | ||||||||||||||
| Alabama | 1,082 | — | — | — | — | ||||||||||||||
| Commercial Banking Solutions | 2,922 | 2,696 | 2,331 | 2,608 | 1,922 | ||||||||||||||
| Total loans | $ | 18,319 | $ | 15,335 | $ | 11,760 | $ | 11,371 | $ | 8,813 | |||||||||
| UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||
| Credit Quality | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| 2023 | |||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||
| NONACCRUAL LOANS | |||||||||||||||||||||
| Owner occupied RE | $ | 3,094 | $ | 5,134 | $ | 3,471 | |||||||||||||||
| Income producing RE | 30,128 | 30,255 | 32,542 | ||||||||||||||||||
| Commercial & industrial | 13,467 | 13,382 | 30,823 | ||||||||||||||||||
| Commercial construction | 1,878 | 1,065 | 115 | ||||||||||||||||||
| Equipment financing | 8,505 | 9,206 | 8,989 | ||||||||||||||||||
| Total commercial | 57,072 | 59,042 | 75,940 | ||||||||||||||||||
| Residential mortgage | 13,944 | 11,893 | 11,419 | ||||||||||||||||||
| Home equity | 3,772 | 4,009 | 2,777 | ||||||||||||||||||
| Residential construction | 944 | 2,074 | 1,682 | ||||||||||||||||||
| Manufactured housing | 15,861 | 12,711 | 10,782 | ||||||||||||||||||
| Consumer | 94 | 89 | 19 | ||||||||||||||||||
| Total nonaccrual loans held for investment | 91,687 | 89,818 | 102,619 | ||||||||||||||||||
| OREO and repossessed assets | 1,190 | 1,065 | 1,118 | ||||||||||||||||||
| Total NPAs | $ | 92,877 | $ | 90,883 | $ | 103,737 | |||||||||||||||
| 2023 | |||||||||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||
| (in thousands) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | Net Charge-Offs | Net Charge-Offs to Average Loans (1) | |||||||||||||||
| NET CHARGE-OFFS BY CATEGORY | |||||||||||||||||||||
| Owner occupied RE | $ | 35 | — | % | $ | 582 | 0.07 | % | $ | (205 | ) | (0.03 | )% | ||||||||
| Income producing RE | (562 | ) | (0.05 | ) | 3,011 | 0.30 | 1,184 | 0.13 | |||||||||||||
| Commercial & industrial | 547 | 0.09 | 17,542 | 2.71 | 2,746 | 0.44 | |||||||||||||||
| Commercial construction | 33 | 0.01 | (49 | ) | (0.01 | ) | (105 | ) | (0.02 | ) | |||||||||||
| Equipment financing | 7,926 | 2.05 | 6,325 | 1.62 | 2,537 | 0.69 | |||||||||||||||
| Total commercial | 7,979 | 0.24 | 27,411 | 0.83 | 6,157 | 0.20 | |||||||||||||||
| Residential mortgage | 12 | — | (129 | ) | (0.02 | ) | (43 | ) | (0.01 | ) | |||||||||||
| Home equity | (68 | ) | (0.03 | ) | (2,784 | ) | (1.17 | ) | (59 | ) | (0.03 | ) | |||||||||
| Residential construction | (13 | ) | (0.01 | ) | 341 | 0.31 | 623 | 0.53 | |||||||||||||
| Manufactured housing | 1,444 | 1.69 | 1,168 | 1.34 | 620 | 0.75 | |||||||||||||||
| Consumer | 768 | 1.70 | 631 | 1.37 | 1,101 | 2.51 | |||||||||||||||
| Total | $ | 10,122 | 0.22 | $ | 26,638 | 0.59 | $ | 8,399 | 0.20 | ||||||||||||
| (1) Annualized. | |||||||||||||||||||||
| UNITED COMMUNITY BANKS, INC. | ||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||
| (in thousands, except share and per share data) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 200,781 | $ | 195,771 | ||||
| Interest-bearing deposits in banks | 803,094 | 316,082 | ||||||
| Federal funds and other short-term investments | — | 135,000 | ||||||
| Cash and cash equivalents | 1,003,875 | 646,853 | ||||||
| Debt securities available-for-sale | 3,331,084 | 3,614,333 | ||||||
| Debt securities held-to-maturity (fair value | 2,490,848 | 2,613,648 | ||||||
| Loans held for sale at fair value | 33,008 | 13,600 | ||||||
| Loans and leases held for investment | 18,318,755 | 15,334,627 | ||||||
| Less allowance for credit losses - loans and leases | (208,071 | ) | (159,357 | ) | ||||
| Loans and leases, net | 18,110,684 | 15,175,270 | ||||||
| Premises and equipment, net | 378,421 | 298,456 | ||||||
| Bank owned life insurance | 345,371 | 299,297 | ||||||
| Accrued interest receivable | 87,782 | 72,807 | ||||||
| Net deferred tax asset | 113,214 | 129,313 | ||||||
| Derivative financial instruments | 50,352 | 50,636 | ||||||
| Goodwill and other intangible assets, net | 990,087 | 779,248 | ||||||
| Other assets | 362,525 | 315,423 | ||||||
| Total assets | $ | 27,297,251 | $ | 24,008,884 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 6,534,307 | $ | 7,643,081 | ||||
| NOW and interest-bearing demand | 6,155,193 | 4,350,878 | ||||||
| Money market | 5,600,587 | 4,510,680 | ||||||
| Savings | 1,207,807 | 1,456,337 | ||||||
| Time | 3,649,498 | 1,781,482 | ||||||
| Brokered | 163,219 | 134,049 | ||||||
| Total deposits | 23,310,611 | 19,876,507 | ||||||
| Short-term borrowings | — | 158,933 | ||||||
| Federal Home Loan Bank advances | — | 550,000 | ||||||
| Long-term debt | 324,823 | 324,663 | ||||||
| Derivative financial instruments | 84,811 | 99,543 | ||||||
| Accrued expenses and other liabilities | 315,481 | 298,564 | ||||||
| Total liabilities | 24,035,726 | 21,308,210 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock, | 88,266 | 96,422 | ||||||
| Common stock, | 119,010 | 106,223 | ||||||
| Common stock issuable; 620,108 and 607,128 shares, respectively | 13,110 | 12,307 | ||||||
| Capital surplus | 2,699,112 | 2,306,366 | ||||||
| Retained earnings | 581,219 | 508,844 | ||||||
| Accumulated other comprehensive loss | (239,192 | ) | (329,488 | ) | ||||
| Total shareholders’ equity | 3,261,525 | 2,700,674 | ||||||
| Total liabilities and shareholders’ equity | $ | 27,297,251 | $ | 24,008,884 | ||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
| Interest revenue: | ||||||||||||||||||||||||||||||||||||||
| Loans, including fees | $ | 281,909 | $ | 197,330 | $ | 1,042,605 | $ | 673,402 | ||||||||||||||||||||||||||||||
| Investment securities, including tax exempt of | 44,025 | 40,781 | 169,800 | 131,824 | ||||||||||||||||||||||||||||||||||
| Deposits in banks and short-term investments | 12,764 | 2,720 | 24,702 | 7,929 | ||||||||||||||||||||||||||||||||||
| Total interest revenue | 338,698 | 240,831 | 1,237,107 | 813,155 | ||||||||||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||
| NOW and interest-bearing demand | 44,527 | 9,688 | 125,336 | 17,312 | ||||||||||||||||||||||||||||||||||
| Money market | 50,967 | 11,244 | 156,397 | 18,274 | ||||||||||||||||||||||||||||||||||
| Savings | 758 | 356 | 2,866 | 693 | ||||||||||||||||||||||||||||||||||
| Time | 35,511 | 3,498 | 110,975 | 5,820 | ||||||||||||||||||||||||||||||||||
| Deposits | 131,763 | 24,786 | 395,574 | 42,099 | ||||||||||||||||||||||||||||||||||
| Short-term borrowings | 9 | 480 | 3,195 | 507 | ||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank advances | — | 1,424 | 5,761 | 1,424 | ||||||||||||||||||||||||||||||||||
| Long-term debt | 3,473 | 4,253 | 14,812 | 16,768 | ||||||||||||||||||||||||||||||||||
| Total interest expense | 135,245 | 30,943 | 419,342 | 60,798 | ||||||||||||||||||||||||||||||||||
| Net interest revenue | 203,453 | 209,888 | 817,765 | 752,357 | ||||||||||||||||||||||||||||||||||
| Provision for credit losses | 14,626 | 19,831 | 89,430 | 63,913 | ||||||||||||||||||||||||||||||||||
| Net interest revenue after provision for credit losses | 188,827 | 190,057 | 728,335 | 688,444 | ||||||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||
| Service charges and fees | 9,621 | 9,519 | 38,412 | 38,163 | ||||||||||||||||||||||||||||||||||
| Mortgage loan gains and related fees | 1,956 | 3,104 | 19,220 | 32,524 | ||||||||||||||||||||||||||||||||||
| Wealth management fees | 5,965 | 5,835 | 23,740 | 23,594 | ||||||||||||||||||||||||||||||||||
| Gains from other loan sales | 2,237 | 1,504 | 9,146 | 10,730 | ||||||||||||||||||||||||||||||||||
| Other lending and loan servicing fees | 3,994 | 2,487 | 13,973 | 10,005 | ||||||||||||||||||||||||||||||||||
| Securities losses, net | (51,689 | ) | (184 | ) | (53,333 | ) | (3,872 | ) | ||||||||||||||||||||||||||||||
| Other | 4,826 | 11,089 | 24,325 | 26,563 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | (23,090 | ) | 33,354 | 75,483 | 137,707 | |||||||||||||||||||||||||||||||||
| Total revenue | 165,737 | 223,411 | 803,818 | 826,151 | ||||||||||||||||||||||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 82,343 | 68,143 | 318,464 | 276,205 | ||||||||||||||||||||||||||||||||||
| Occupancy | 11,616 | 8,866 | 42,640 | 36,247 | ||||||||||||||||||||||||||||||||||
| Communications and equipment | 11,610 | 10,516 | 43,264 | 38,234 | ||||||||||||||||||||||||||||||||||
| FDIC assessments and other regulatory charges | 14,992 | 3,098 | 27,449 | 9,894 | ||||||||||||||||||||||||||||||||||
| Professional fees | 7,062 | 5,496 | 26,732 | 20,166 | ||||||||||||||||||||||||||||||||||
| Lending and loan servicing expense | 2,176 | 1,604 | 9,722 | 9,350 | ||||||||||||||||||||||||||||||||||
| Outside services - electronic banking | 2,931 | 3,954 | 11,577 | 12,583 | ||||||||||||||||||||||||||||||||||
| Postage, printing and supplies | 2,162 | 2,441 | 9,467 | 8,749 | ||||||||||||||||||||||||||||||||||
| Advertising and public relations | 2,559 | 2,052 | 9,473 | 8,384 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 4,055 | 1,619 | 15,175 | 6,826 | ||||||||||||||||||||||||||||||||||
| Merger-related and other charges | 5,766 | 1,470 | 27,210 | 19,375 | ||||||||||||||||||||||||||||||||||
| Other | 7,315 | 8,070 | 30,100 | 24,136 | ||||||||||||||||||||||||||||||||||
| Total noninterest expenses | 154,587 | 117,329 | 571,273 | 470,149 | ||||||||||||||||||||||||||||||||||
| Net income before income taxes | 11,150 | 106,082 | 232,545 | 356,002 | ||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | (2,940 | ) | 24,632 | 45,001 | 78,530 | |||||||||||||||||||||||||||||||||
| Net income | $ | 14,090 | $ | 81,450 | $ | 187,544 | $ | 277,472 | ||||||||||||||||||||||||||||||
| Preferred stock dividends, net of discount on repurchases | 1,395 | 1,718 | 5,665 | 6,875 | ||||||||||||||||||||||||||||||||||
| Earnings allocated to participating securities | 77 | 461 | 1,032 | 1,462 | ||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 12,618 | $ | 79,271 | $ | 180,847 | $ | 269,135 | ||||||||||||||||||||||||||||||
| Net income per common share: | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.11 | $ | 0.74 | $ | 1.54 | $ | 2.52 | ||||||||||||||||||||||||||||||
| Diluted | 0.11 | 0.74 | 1.54 | 2.52 | ||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||
| Basic | 119,612 | 106,795 | 117,603 | 106,661 | ||||||||||||||||||||||||||||||||||
| Diluted | 119,713 | 106,916 | 117,745 | 106,778 | ||||||||||||||||||||||||||||||||||
| Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||
| For the Three Months Ended December 31, | ||||||||||||||||||||||
| (dollars in thousands, fully taxable equivalent (FTE)) | ||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 18,167,572 | $ | 281,776 | 6.15 | % | $ | 15,002,836 | $ | 197,502 | 5.22 | % | ||||||||||
| Taxable securities (3) | 5,772,630 | 42,293 | 2.93 | 6,325,165 | 38,220 | 2.42 | ||||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 367,585 | 2,326 | 2.53 | 490,838 | 3,440 | 2.80 | ||||||||||||||||
| Federal funds sold and other interest-earning assets | 1,092,939 | 13,294 | 4.83 | 453,090 | 2,912 | 2.55 | ||||||||||||||||
| Total interest-earning assets (FTE) | 25,400,726 | 339,689 | 5.31 | 22,271,929 | 242,074 | 4.32 | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||
| Allowance for loan losses | (204,631 | ) | (152,551 | ) | ||||||||||||||||||
| Cash and due from banks | 210,383 | 217,873 | ||||||||||||||||||||
| Premises and equipment | 377,765 | 297,523 | ||||||||||||||||||||
| Other assets (3) | 1,516,268 | 1,166,424 | ||||||||||||||||||||
| Total assets | $ | 27,300,511 | $ | 23,801,198 | ||||||||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 5,961,835 | 44,527 | 2.96 | $ | 4,385,916 | 9,688 | 0.88 | ||||||||||||||
| Money market | 5,799,213 | 50,967 | 3.49 | 4,628,585 | 11,244 | 0.96 | ||||||||||||||||
| Savings | 1,227,708 | 758 | 0.24 | 1,480,908 | 356 | 0.10 | ||||||||||||||||
| Time | 3,611,790 | 35,117 | 3.86 | 1,708,311 | 3,143 | 0.73 | ||||||||||||||||
| Brokered time deposits | 60,583 | 394 | 2.58 | 51,258 | 355 | 2.75 | ||||||||||||||||
| Total interest-bearing deposits | 16,661,129 | 131,763 | 3.14 | 12,254,978 | 24,786 | 0.80 | ||||||||||||||||
| Federal funds purchased and other borrowings | 7,958 | 9 | 0.45 | 47,487 | 480 | 4.01 | ||||||||||||||||
| Federal Home Loan Bank advances | — | — | — | 135,000 | 1,424 | 4.18 | ||||||||||||||||
| Long-term debt | 324,801 | 3,473 | 4.24 | 324,590 | 4,253 | 5.20 | ||||||||||||||||
| Total borrowed funds | 332,759 | 3,482 | 4.15 | 507,077 | 6,157 | 4.82 | ||||||||||||||||
| Total interest-bearing liabilities | 16,993,888 | 135,245 | 3.16 | 12,762,055 | 30,943 | 0.96 | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||
| Noninterest-bearing deposits | 6,690,251 | 7,993,816 | ||||||||||||||||||||
| Other liabilities | 410,067 | 383,270 | ||||||||||||||||||||
| Total liabilities | 24,094,206 | 21,139,141 | ||||||||||||||||||||
| Shareholders’ equity | 3,206,305 | 2,662,057 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 27,300,511 | $ | 23,801,198 | ||||||||||||||||||
| Net interest revenue (FTE) | $ | 204,444 | $ | 211,131 | ||||||||||||||||||
| Net interest-rate spread (FTE) | 2.15 | % | 3.36 | % | ||||||||||||||||||
| Net interest margin (FTE) (4) | 3.19 | % | 3.76 | % | ||||||||||||||||||
| (1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was |
| (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. |
| Average Consolidated Balance Sheets and Net Interest Analysis | |||||||||||||||||||||||
| For the Twelve Months Ended December 31, | |||||||||||||||||||||||
| (dollars in thousands, fully taxable equivalent (FTE)) | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans, net of unearned income (FTE) (1)(2) | $ | 17,576,424 | $ | 1,042,578 | 5.93 | % | $ | 14,571,746 | $ | 673,491 | 4.62 | % | |||||||||||
| Taxable securities (3) | 5,929,687 | 162,505 | 2.74 | 6,284,603 | 121,501 | 1.93 | |||||||||||||||||
| Tax-exempt securities (FTE) (1)(3) | 381,731 | 9,796 | 2.57 | 496,327 | 13,865 | 2.79 | |||||||||||||||||
| Federal funds sold and other interest-earning assets | 642,499 | 26,397 | 4.11 | 1,065,057 | 9,104 | 0.85 | |||||||||||||||||
| Total interest-earning assets (FTE) | 24,530,341 | 1,241,276 | 5.06 | 22,417,733 | 817,961 | 3.65 | |||||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||
| Allowance for loan losses | (191,016 | ) | (135,144 | ) | |||||||||||||||||||
| Cash and due from banks | 239,574 | 204,852 | |||||||||||||||||||||
| Premises and equipment | 355,139 | 288,044 | |||||||||||||||||||||
| Other assets (3) | 1,517,940 | 1,275,263 | |||||||||||||||||||||
| Total assets | $ | 26,451,978 | $ | 24,050,748 | |||||||||||||||||||
| Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 5,161,071 | 125,336 | 2.43 | $ | 4,486,263 | 17,312 | 0.39 | |||||||||||||||
| Money market | 5,462,677 | 156,397 | 2.86 | 4,900,667 | 18,274 | 0.37 | |||||||||||||||||
| Savings | 1,312,469 | 2,866 | 0.22 | 1,482,599 | 693 | 0.05 | |||||||||||||||||
| Time | 3,106,989 | 100,973 | 3.25 | 1,693,307 | 5,152 | 0.30 | |||||||||||||||||
| Brokered time deposits | 224,914 | 10,002 | 4.45 | 61,636 | 668 | 1.08 | |||||||||||||||||
| Total interest-bearing deposits | 15,268,120 | 395,574 | 2.59 | 12,624,472 | 42,099 | 0.33 | |||||||||||||||||
| Federal funds purchased and other borrowings | 75,965 | 3,195 | 4.21 | 13,004 | 507 | 3.90 | |||||||||||||||||
| Federal Home Loan Bank advances | 124,425 | 5,761 | 4.63 | 34,027 | 1,424 | 4.18 | |||||||||||||||||
| Long-term debt | 324,753 | 14,812 | 4.56 | 323,102 | 16,768 | 5.19 | |||||||||||||||||
| Total borrowed funds | 525,143 | 23,768 | 4.53 | 370,133 | 18,699 | 5.05 | |||||||||||||||||
| Total interest-bearing liabilities | 15,793,263 | 419,342 | 2.66 | 12,994,605 | 60,798 | 0.47 | |||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing deposits | 7,091,034 | 7,967,321 | |||||||||||||||||||||
| Other liabilities | 397,337 | 377,221 | |||||||||||||||||||||
| Total liabilities | 23,281,634 | 21,339,147 | |||||||||||||||||||||
| Shareholders’ equity | 3,170,344 | 2,711,601 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 26,451,978 | $ | 24,050,748 | |||||||||||||||||||
| Net interest revenue (FTE) | $ | 821,934 | $ | 757,163 | |||||||||||||||||||
| Net interest-rate spread (FTE) | 2.40 | % | 3.18 | % | |||||||||||||||||||
| Net interest margin (FTE) (4) | 3.35 | % | 3.38 | % | |||||||||||||||||||
| (1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was |
| (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. (NASDAQ: UCBI) is the financial holding company for United Community, a top 100 US financial institution that is committed to improving the financial health and well-being of its customers and ultimately the communities it serves. United Community provides a full range of banking, wealth management, and mortgage services. As of December 31, 2023, United Community has
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 “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, excluding non-operating items,” “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. Further, United’s management uses these measures in managing and evaluating United’s business and intends to refer to them in discussions about United’s operations and performance. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.
Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, and include statements related to the strength of our pipelines and their ability to support business growth across our markets and our belief that our high-quality balance sheet and business mix will support strong performance regardless of future economic conditions. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.
Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from acquisitions may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of these acquisitions, (3) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to these acquisitions, (4) the risks relating to the integration of acquired banks’ operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (5) the risks associated with United’s pursuit of future acquisitions, (6) the risk associated with expansion into new geographic or product markets, and (7) general competitive, economic, political, regulatory 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, 2022, 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, Inc.'s net income for the fourth quarter of 2023?
What was the diluted earnings per share for the fourth quarter of 2023?
What was the percentage change in diluted earnings per share from the third quarter of 2023 to the fourth quarter of 2023?
How much did deposits grow by in the fourth quarter of 2023?
What was the return on assets for United Community Banks, Inc. in the fourth quarter of 2023?
What was the net interest margin for United Community Banks, Inc. in the fourth quarter of 2023?
What is United Community Banks, Inc.'s ticker symbol?
