GREENVILLE, S.C. , Oct. 23, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the 2024 third quarter of $47.3 million and pre-tax, pre-provision income of $74.2 million. The result included the previously announced strategic decision to sell $318 million in manufactured housing loans, which negatively impacted the quarter by $21.4 million after-tax, or $0.18 per share. Diluted earnings per share of $0.38 for the quarter represented a decrease of $0.01, or 3%, from the third quarter a year ago and a decrease of $0.16, or 30%, from the second quarter of 2024.
On an operating basis, United’s diluted earnings per share of $0.57 was up 27% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and a lower provision for credit losses. The $0.57 result includes a $9.9 million Hurricane Helene related loan loss provision to increase the reserve on $383 million of loans in nine North Carolina counties impacted by the hurricane to 3.5% of loans.
United’s return on assets was 0.67%, or 1.01% on an operating basis. Return on common equity was 5.20% and return on tangible common equity on an operating basis was 11.17%. On a pre-tax, pre-provision basis, operating return on assets was 1.50% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.93%, up 15 basis points from the second quarter of 2024.
Chairman and CEO Lynn Harton stated, “We continue to focus on growth and the third quarter saw the return of modest loan and strong deposit growth. Excluding the sale of our manufactured housing portfolio, announced in early September, loan balances were up 1.5% annualized. Customer deposits, which exclude brokered deposits, were up $262 million, or 5% annualized. Our balance sheet remains highly liquid and our internal capital generation rate is running well in excess of our current capital needs. We maintained robust capital ratios with our preliminary CET1 moving to 13.1% and we opportunistically redeemed $8 million of relatively expensive Trust Preferred securities. The increase in liquidity and capital place us in a great position to take advantage of growth opportunities as we move into 2025.”
Mr. Harton continued, “We elected to sell our manufactured housing loan book, a business that was part of our Reliant Bancorp, Inc. acquisition in January of 2022, as a natural conclusion of our exit from the business, as we ceased originating loans in the third quarter of 2023. The transaction reduces our risk profile and allows us to allocate capital to other growth opportunities.”
United’s net interest margin decreased four basis points to 3.33% from the second quarter. The average yield on United’s interest-earning assets was down four basis points to 5.55%, while its cost of interest-bearing liabilities decreased two basis points, leading to the four-basis point reduction in net interest margin. Net charge-offs were $23.7 million, or 0.52% of average loans, during the quarter, up 26 basis points compared to the second quarter of 2024 due to transaction-related losses resulting from the sale of our manufactured housing portfolio. NPAs were 42 basis points relative to total assets, down one basis point from the second quarter.
Mr. Harton concluded, “We are pleased with our operating performance this quarter, but we were also reminded this quarter of the importance of community. Many of our employees, customers, and communities have been impacted by the recent hurricanes. We are actively involved in the recovery process through volunteer hours and financial support and will be ready to lead the rebuilding process, when and as needed. Many thanks to our employees throughout the company that have responded, in sometimes heroic ways, to support each other and our customers.”
Third Quarter 2024 Financial Highlights:
- Net income of $47.3 million and pre-tax, pre-provision income of $74.2 million
- EPS down 3% compared to third quarter 2023 on a GAAP basis and up 27% on an operating basis; compared to second quarter 2024, EPS down 30% on a GAAP basis and down 2% on an operating basis
- The GAAP results were impacted by the decision to sell the manufactured housing loan book at a $21.4 million after-tax loss, or $0.18, approximately one year after making the strategic decision to cease originations
- Return on assets of 0.67%, or 1.01% on an operating basis
- Pre-tax, pre-provision return on assets of 1.50% on an operating basis
- Return on common equity of 5.20%
- Return on tangible common equity of 11.17% on an operating basis
- A provision for credit losses of $14.4 million, which includes $9.9 million to establish a special reserve for expected credit losses from Hurricane Helene
- Net charge-offs of $23.7 million, or 52 basis points as a percent of average loans, which included $11.0 million, or 24 basis points, of transaction-related losses from the sale of our manufactured housing portfolio
- Nonperforming assets of 0.42% of total assets, down one basis point compared to June 30, 2024
- Loan production of $1.2 billion
- Customer deposits were up $262 million from the second quarter, with most of the growth in NOW and money market deposits
- Net interest margin of 3.33% decreased by four basis points from the second quarter mostly due to lower purchased loan accretion, the sale of our manufactured housing portfolio, and changing composition of our earning assets and interest-bearing liabilities
- Mortgage closings of $239 million compared to $211 million a year ago; mortgage rate locks of $306 million compared to $304 million a year ago
- Noninterest income was down $28.5 million on a linked quarter basis with $27.2 million due to losses from the sale of manufactured housing loans. The remaining decrease was primarily driven by the mark on our mortgage servicing rights asset.
- Noninterest expenses decreased by $4.0 million compared to the second quarter on a GAAP basis and were up $0.3 million on an operating basis
- Efficiency ratio of 65.5%, or 57.4% on an operating basis
- Maintained robust capital ratios with preliminary CET1 increasing to 13.1% and opportunistically redeemed $8 million of relatively expensive Trust Preferred securities
- Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year
Conference Call
United will hold a conference call on Wednesday, October 23, 2024 at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10193157/fd9f74293a. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, www.ucbi.com.
| UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | Third Quarter 2024- 2023 Change | For the Nine Months Ended September 30, | YTD 2024- 2023 Change | |||||||||||||||||||||||||||||||
| Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | 2024 | 2023 | |||||||||||||||||||||||||||||
| INCOME SUMMARY | |||||||||||||||||||||||||||||||||||
| Interest revenue | $ | 349,086 | $ | 346,965 | $ | 336,728 | $ | 338,698 | $ | 323,147 | $ | 1,032,779 | $ | 898,409 | |||||||||||||||||||||
| Interest 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 $2,060,729 and $2,095,620, respectively) | 2,401,877 | 2,490,848 | ||||||
| Loans held for sale | 49,800 | 33,008 | ||||||
| Loans and leases held for investment | 17,964,099 | 18,318,755 | ||||||
| Allowance for credit losses - loans and leases | (205,290 | ) | (208,071 | ) | ||||
| Loans and leases, net | 17,758,809 | 18,110,684 | ||||||
| Premises and equipment, net | 396,696 | 378,421 | ||||||
| Bank owned life insurance | 345,703 | 345,371 | ||||||
| Goodwill and other intangible assets, net | 975,117 | 990,087 | ||||||
| Other assets | 681,636 | 613,873 | ||||||
| Total assets | $ | 27,373,132 | $ | 27,297,251 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 6,222,518 | $ | 6,534,307 | ||||
| NOW and interest-bearing demand | 5,951,900 | 6,155,193 | ||||||
| Money market | 6,301,956 | 5,600,587 | ||||||
| Savings | 1,113,168 | 1,207,807 | ||||||
| Time | 3,490,399 | 3,649,498 | ||||||
| Brokered | 173,161 | 163,219 | ||||||
| Total deposits | 23,253,102 | 23,310,611 | ||||||
| Long-term debt | 316,363 | 324,823 | ||||||
| Accrued expenses and other liabilities | 396,987 | 400,292 | ||||||
| Total liabilities | 23,966,452 | 24,035,726 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock; $1 par value; 10,000,000 shares authorized; 3,662 shares Series I issued and outstanding; $25,000 per share liquidation preference | 88,266 | 88,266 | ||||||
| Common stock, $1 par value; 200,000,000 shares authorized, 119,282,762 and 119,010,319 shares issued and outstanding, respectively | 119,283 | 119,010 | ||||||
| Common stock issuable; 588,296 and 620,108 shares, respectively | 12,661 | 13,110 | ||||||
| Capital surplus | 2,707,266 | 2,699,112 | ||||||
| Retained earnings | 668,965 | 581,219 | ||||||
| Accumulated other comprehensive loss | (189,761 | ) | (239,192 | ) | ||||
| Total shareholders' equity | 3,406,680 | 3,261,525 | ||||||
| Total liabilities and shareholders' equity | $ | 27,373,132 | $ | 27,297,251 | ||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Interest revenue: | ||||||||||||||||
| Loans, including fees | $ | 291,574 | $ | 273,781 | $ | 867,152 | $ | 760,696 | ||||||||
| Investment securities, including tax exempt of $1,713, $1,722, $5,133 and $5,563, respectively | 52,997 | 44,729 | 149,496 | 125,775 | ||||||||||||
| Deposits in banks and short-term investments | 4,515 | 4,637 | 16,131 | 11,938 | ||||||||||||
| Total interest revenue | 349,086 | 323,147 | 1,032,779 | 898,409 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW and interest-bearing demand | 43,401 | 35,613 | 133,522 | 80,809 | ||||||||||||
| Money market | 56,874 | 46,884 | 160,883 | 105,430 | ||||||||||||
| Savings | 672 | 868 | 2,065 | 2,108 | ||||||||||||
| Time | 35,202 | 33,368 | 107,925 | 75,464 | ||||||||||||
| Deposits | 136,149 | 116,733 | 404,395 | 263,811 | ||||||||||||
| Short-term borrowings | 27 | 189 | 87 | 3,186 | ||||||||||||
| Federal Home Loan Bank advances | — | — | — | 5,761 | ||||||||||||
| Long-term debt | 3,724 | 3,669 | 11,262 | 11,339 | ||||||||||||
| Total interest expense | 139,900 | 120,591 | 415,744 | 284,097 | ||||||||||||
| Net interest revenue | 209,186 | 202,556 | 617,035 | 614,312 | ||||||||||||
| Provision for credit losses | 14,428 | 30,268 | 39,562 | 74,804 | ||||||||||||
| Net interest revenue after provision for credit losses | 194,758 | 172,288 | 577,473 | 539,508 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and fees | 10,488 | 10,315 | 30,372 | 28,791 | ||||||||||||
| Mortgage loan gains and other related fees | 3,520 | 6,159 | 17,830 | 17,264 | ||||||||||||
| Wealth management fees | 6,338 | 6,451 | 19,037 | 17,775 | ||||||||||||
| Net (losses) gains from sales of other loans | (25,700 | ) | 2,688 | (22,867 | ) | 6,909 | ||||||||||
| Lending and loan servicing fees | 3,512 | 2,985 | 11,050 | 9,979 | ||||||||||||
| Securities losses, net | — | — | — | (1,644 | ) | |||||||||||
| Other | 9,933 | 3,379 | 28,812 | 19,499 | ||||||||||||
| Total noninterest income | 8,091 | 31,977 | 84,234 | 98,573 | ||||||||||||
| Total revenue | 202,849 | 204,265 | 661,707 | 638,081 | ||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries and employee benefits | 83,533 | 81,173 | 254,336 | 236,121 | ||||||||||||
| Communications and equipment | 12,626 | 10,902 | 36,534 | 31,654 | ||||||||||||
| Occupancy | 11,311 | 10,941 | 33,466 | 31,024 | ||||||||||||
| Advertising and public relations | 2,041 | 2,251 | 6,401 | 6,914 | ||||||||||||
| Postage, printing and supplies | 2,477 | 2,386 | 7,376 | 7,305 | ||||||||||||
| Professional fees | 6,432 | 7,006 | 18,464 | 19,670 | ||||||||||||
| Lending and loan servicing expense | 2,227 | 2,697 | 6,068 | 7,546 | ||||||||||||
| Outside services - electronic banking | 4,433 | 2,561 | 10,163 | 8,646 | ||||||||||||
| FDIC assessments and other regulatory charges | 5,003 | 4,314 | 17,036 | 12,457 | ||||||||||||
| Amortization of intangibles | 3,528 | 4,171 | 11,209 | 11,120 | ||||||||||||
| Merger-related and other charges | 2,176 | 9,168 | 6,420 | 21,444 | ||||||||||||
| Other | 7,278 | 6,904 | 27,638 | 22,785 | ||||||||||||
| Total noninterest expenses | 143,065 | 144,474 | 435,111 | 416,686 | ||||||||||||
| Income before income taxes | 59,784 | 59,791 | 226,596 | 221,395 | ||||||||||||
| Income tax expense | 12,437 | 11,925 | 50,003 | 47,941 | ||||||||||||
| Net income | 47,347 | 47,866 | 176,593 | 173,454 | ||||||||||||
| Preferred stock dividends, net of discount on repurchases | 1,573 | 832 | 4,719 | 4,270 | ||||||||||||
| Earnings allocated to participating securities | 272 | 259 | 988 | 939 | ||||||||||||
| Net income available to common shareholders | $ | 45,502 | $ | 46,775 | $ | 170,886 | $ | 168,245 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.38 | $ | 0.39 | $ | 1.43 | $ | 1.44 | ||||||||
| Diluted | 0.38 | 0.39 | 1.43 | 1.44 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 119,818 | 119,506 | 119,736 | 116,925 | ||||||||||||
| Diluted | 119,952 | 119,624 | 119,827 | 117,084 | ||||||||||||
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
| Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||||
| For the Three Months Ended September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| (dollars in thousands, fully taxable equivalent (FTE)) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans, net of unearned income (FTE)(1)(2) | $ | 18,051,741 | $ | 291,164 | 6.42 | % | $ | 18,055,402 | $ | 273,800 | 6.02 | % | ||||||||||||
| Taxable securities(3) | 6,182,164 | 51,284 | 3.32 | 5,933,708 | 43,007 | 2.90 | ||||||||||||||||||
| Tax-exempt securities (FTE)(1)(3) | 361,359 | 2,292 | 2.54 | 368,148 | 2,313 | 2.51 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 505,792 | 5,440 | 4.28 | 538,039 | 5,093 | 3.76 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 25,101,056 | 350,180 | 5.55 | 24,895,297 | 324,213 | 5.17 | ||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for credit losses | (215,008 | ) | (209,472 | ) | ||||||||||||||||||||
| Cash and due from banks | 206,995 | 225,831 | ||||||||||||||||||||||
| Premises and equipment | 399,262 | 367,217 | ||||||||||||||||||||||
| Other assets(3) | 1,615,468 | 1,568,824 | ||||||||||||||||||||||
| Total assets | $ | 27,107,773 | $ | 26,847,697 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 5,797,845 | 43,401 | 2.98 | $ | 5,285,513 | 35,613 | 2.67 | ||||||||||||||||
| Money market | 6,342,455 | 56,874 | 3.57 | 5,622,355 | 46,884 | 3.31 | ||||||||||||||||||
| Savings | 1,126,774 | 672 | 0.24 | 1,301,047 | 868 | 0.26 | ||||||||||||||||||
| Time | 3,465,980 | 34,560 | 3.97 | 3,473,191 | 31,072 | 3.55 | ||||||||||||||||||
| Brokered time deposits | 50,364 | 642 | 5.07 | 209,119 | 2,296 | 4.36 | ||||||||||||||||||
| Total interest-bearing deposits | 16,783,418 | 136,149 | 3.23 | 15,891,225 | 116,733 | 2.91 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 1,899 | 27 | 5.66 | 44,164 | 189 | 1.70 | ||||||||||||||||||
| Federal Home Loan Bank advances | 11 | — | — | — | — | — | ||||||||||||||||||
| Long-term debt | 323,544 | 3,724 | 4.58 | 324,770 | 3,669 | 4.48 | ||||||||||||||||||
| Total borrowed funds | 325,454 | 3,751 | 4.59 | 368,934 | 3,858 | 4.15 | ||||||||||||||||||
| Total interest-bearing liabilities | 17,108,872 | 139,900 | 3.25 | 16,260,159 | 120,591 | 2.94 | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 6,239,926 | 6,916,272 | ||||||||||||||||||||||
| Other liabilities | 391,574 | 435,592 | ||||||||||||||||||||||
| Total liabilities | 23,740,372 | 23,612,023 | ||||||||||||||||||||||
| Shareholders' equity | 3,367,401 | 3,235,674 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 27,107,773 | $ | 26,847,697 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 210,280 | $ | 203,622 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 2.30 | % | 2.23 | % | ||||||||||||||||||||
| Net interest margin (FTE)(4) | 3.33 | % | 3.24 | % | ||||||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.09 million and $1.07 million, respectively, for the three months ended September 30, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $295 million in 2024 and $430 million in 2023 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.
| UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||||
| Average Consolidated Balance Sheets and Net Interest Analysis | ||||||||||||||||||||||||
| For the Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| (dollars in thousands, fully taxable equivalent (FTE)) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans, net of unearned income (FTE)(1)(2) | $ | 18,187,790 | $ | 866,502 | 6.36 | % | $ | 17,377,210 | $ | 760,802 | 5.85 | % | ||||||||||||
| Taxable securities(3) | 5,988,368 | 144,363 | 3.21 | 5,982,615 | 120,212 | 2.68 | ||||||||||||||||||
| Tax-exempt securities (FTE)(1)(3) | 363,692 | 6,876 | 2.52 | 386,499 | 7,470 | 2.58 | ||||||||||||||||||
| Federal funds sold and other interest-earning assets | 559,786 | 18,256 | 4.36 | 490,703 | 13,103 | 3.57 | ||||||||||||||||||
| Total interest-earning assets (FTE) | 25,099,636 | 1,035,997 | 5.51 | 24,237,027 | 901,587 | 4.97 | ||||||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||
| Allowance for loan losses | (214,372 | ) | (186,428 | ) | ||||||||||||||||||||
| Cash and due from banks | 210,982 | 249,411 | ||||||||||||||||||||||
| Premises and equipment | 392,561 | 347,514 | ||||||||||||||||||||||
| Other assets(3) | 1,613,118 | 1,518,503 | ||||||||||||||||||||||
| Total assets | $ | 27,101,925 | $ | 26,166,027 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| NOW and interest-bearing demand | $ | 5,913,566 | 133,522 | 3.02 | $ | 4,891,214 | 80,809 | 2.21 | ||||||||||||||||
| Money market | 6,092,649 | 160,883 | 3.53 | 5,349,265 | 105,430 | 2.64 | ||||||||||||||||||
| Savings | 1,159,982 | 2,065 | 0.24 | 1,341,033 | 2,108 | 0.21 | ||||||||||||||||||
| Time | 3,535,343 | 106,199 | 4.01 | 2,936,873 | 65,856 | 3.00 | ||||||||||||||||||
| Brokered time deposits | 50,343 | 1,726 | 4.58 | 280,293 | 9,608 | 4.58 | ||||||||||||||||||
| Total interest-bearing deposits | 16,751,883 | 404,395 | 3.22 | 14,798,678 | 263,811 | 2.38 | ||||||||||||||||||
| Federal funds purchased and other borrowings | 2,001 | 87 | 5.81 | 98,884 | 3,186 | 4.31 | ||||||||||||||||||
| Federal Home Loan Bank advances | 5 | — | — | 166,355 | 5,761 | 4.63 | ||||||||||||||||||
| Long-term debt | 324,414 | 11,262 | 4.64 | 324,737 | 11,339 | 4.67 | ||||||||||||||||||
| Total borrowed funds | 326,420 | 11,349 | 4.64 | 589,976 | 20,286 | 4.60 | ||||||||||||||||||
| Total interest-bearing liabilities | 17,078,303 | 415,744 | 3.25 | 15,388,654 | 284,097 | 2.47 | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 6,306,919 | 7,226,096 | ||||||||||||||||||||||
| Other liabilities | 394,323 | 393,048 | ||||||||||||||||||||||
| Total liabilities | 23,779,545 | 23,007,798 | ||||||||||||||||||||||
| Shareholders' equity | 3,322,380 | 3,158,229 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 27,101,925 | $ | 26,166,027 | ||||||||||||||||||||
| Net interest revenue (FTE) | $ | 620,253 | $ | 617,490 | ||||||||||||||||||||
| Net interest-rate spread (FTE) | 2.26 | % | 2.50 | % | ||||||||||||||||||||
| Net interest margin (FTE)(4) | 3.30 | % | 3.41 | % | ||||||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $3.22 million and $3.18 million, respectively, for the nine months ended September 30, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
(3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $320 million in 2024 and $413 million in 2023 are included in other assets for purposes of this presentation.
(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
About United Community Banks, Inc.
United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management and mortgage services. As of September 30, 2024, United Community Banks, Inc. had $27.4 billion in assets, 202 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power’s award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United was named by American Banker as one of the “Best Banks to Work For” for the seventh consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. Additional information about United can be found at ucbi.com.
Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “noninterest income – operating”, “noninterest expense - operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax, pre-provision - operating,” “return on assets - pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.
Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).
Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.
United qualifies all forward-looking statements by these cautionary statements.
For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
