UCB - United Community Banks, Inc. Reports First Quarter Earnings

April, 22 2025 07:30 AM United Community Banks Inc.

GREENVILLE, S.C., April 22, 2025 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the first quarter of 2025 of $71.4 million and pre-tax, pre-provision income of $106.6 million. Diluted earnings per share of $0.58 for the quarter represented an increase of $0.07 from the first quarter a year ago and a decrease of $0.03 from the fourth quarter of 2024.

On an operating basis, United’s diluted earnings per share of $0.59 were up 13% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and lower noninterest expenses, partly offset by lower noninterest income and a higher provision for credit losses.

United’s return on assets was 1.02%, or 1.04% on an operating basis. Return on common equity was 7.9%, and return on tangible common equity on an operating basis was 11.2%. On a pre-tax, pre-provision basis, operating return on assets was 1.55% for the quarter. At quarter-end, tangible common equity to tangible assets was 9.18%, up 21 basis points from the fourth quarter of 2024.

Chairman and CEO Lynn Harton stated, “The first quarter was a strong start to the year. Our teams delivered solid loan and deposit growth in what has typically been a seasonally weak quarter. Loans grew by $249 million, or 5.6% annualized, and customer deposits increased $309 million, or 5.4% annualized. Our net interest margin expanded by 10 basis points, helping us to grow net interest income by $1.7 million from the fourth quarter, despite two fewer accruing days. Credit quality remained stable, with first quarter net charge-offs holding steady at 0.21% of average loans. Our provision for credit losses increased by $4.0 million from the fourth quarter, covering first quarter net charge-offs as well as loan growth, slightly increasing our allowance for credit losses to 1.21% of loans, up from 1.20% on December 31, 2024. Expenses improved on an absolute basis from both the fourth and first quarters of 2024, reflecting our ongoing efforts to control costs.”

Harton continued, “We are particularly excited that our bankers were recognized once again by J.D. Power as #1 in Customer Satisfaction in the Southeast, along with #1 in Trust and #1 in People. This year marks our 75?? anniversary, and we’re off to a strong start. I’m proud to make this milestone meaningful for our customers, employees, and shareholders. We’re also excited to continue growing our presence in Florida with the recent announcement of our planned acquisition of American National Bank, headquartered in Oakland Park. This expansion will strengthen our footprint in the fast-growing South Florida market. Our teams have been collaborating closely for several months, and we expect to close the transaction on May 1.”

United’s net interest margin increased 10 basis points to 3.36% from the fourth quarter. The average yield on interest-earning assets was down four basis points to 5.29%, while the cost of interest-bearing liabilities decreased 19 basis points, leading to a 15-basis-point increase in the net interest spread. The 10-basis-point increase in net interest margin reflects progress in lowering the cost of funds through reduction in deposit rates and redemption of debt instruments, and to a lesser extent, the seasonal outflow of higher-priced public funds deposits.

Net charge-offs were $9.6 million, or 0.21% of average loans, during the quarter, equal to the fourth quarter of 2024. Nonperforming assets were 33 basis points relative to total assets, improved from 42 basis points for the fourth quarter.

First Quarter 2025 Financial Highlights:

EPS up $0.07 compared to first quarter 2024 on a GAAP basis and up $0.07, or 13%, on an operating basis; EPS down $0.03 compared to the fourth quarter on a GAAP basis and down $0.04, or 6%, on an operating basis
Total revenue improved $8.9 million, or 3.7%, year-over-year
Net interest margin of 3.36% increased by 10 basis points from the fourth quarter, reflecting a lower cost of funds
Loan production of $2.0 billion led to loan growth of $249 million, up 5.6% annualized, from the fourth quarter
Customer deposits were up $309 million from the fourth quarter, with most of the growth in money market deposits
Noninterest income was down $4.9 million on a linked quarter basis mostly due to the absence of unusual fourth quarter gains in the form of a mortgage servicing right write-up and other unusual gains
Mortgage closings of $187 million compared to $171 million a year ago; mortgage rate locks of $330 million compared to $260 million a year ago
Noninterest expenses improved $2.0 million compared to the fourth quarter on a GAAP basis and down $1.1 million on an operating basis
Efficiency ratio of 56.7%, or 56.2% on an operating basis
Net income of $71.4 million and pre-tax, pre-provision income of $106.6 million
Return on assets of 1.02%, or 1.04% on an operating basis
Pre-tax, pre-provision return on assets of 1.55% on an operating basis
Return on common equity of 7.9%
Return on tangible common equity of 11.2% on an operating basis
Provision for credit losses was $15.4 million; allowance for credit losses coverage up slightly to 1.21% of total loans
Net charge-offs of $9.6 million, or 21 basis points as a percent of average loans
Nonperforming assets improved $22 million from December 31, 2024, to 0.33% of total assets
Maintained robust capital ratios with preliminary Common Equity Tier 1 increasing to 13.3%
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 Tuesday, April 22 at 9:00 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10198403/fed7e1f137 . Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, ucbi.com.

UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)



2025



2024


First Quarter 2025 - 2024 Change

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

INCOME SUMMARY











Interest revenue
$
335,357


$
344,962


$
349,086


$
346,965


$
336,728



Interest expense

123,336



134,629



139,900



138,265



137,579



Net interest revenue

212,021



210,333



209,186



208,700



199,149


6
%
Noninterest income

35,656



40,522



8,091



36,556



39,587


(10
)
Total revenue

247,677



250,855



217,277



245,256



238,736


4

Provision for credit losses

15,419



11,389



14,428



12,235



12,899



Noninterest expenses

141,099



143,056



143,065



147,044



145,002


(3
)
Income before income tax expense

91,159



96,410



59,784



85,977



80,835


13

Income tax expense

19,746



20,606



12,437



19,362



18,204


8

Net income

71,413



75,804



47,347



66,615



62,631


14

Non-operating items

1,297



2,203



29,385



6,493



2,187



Income tax benefit of non-operating items

(281
)


(471
)


(6,276
)


(1,462
)


(493
)


Net income – operating ⁽¹⁾
$
72,429


$
77,536


$
70,456


$
71,646


$
64,325


13

Pre-tax pre-provision income ⁽⁵⁾
$
106,578


$
107,799


$
74,212


$
98,212


$
93,734


14

PERFORMANCE MEASURES











Per common share:











Diluted net income – GAAP
$
0.58


$
0.61


$
0.38


$
0.54


$
0.51


14

Diluted net income – operating ⁽¹⁾

0.59



0.63



0.57



0.58



0.52


13

Cash dividends declared

0.24



0.24



0.24



0.23



0.23


4

Book value

28.42



27.87



27.68



27.18



26.83


6

Tangible book value ⁽³⁾

20.58



20.00



19.66



19.13



18.71


10

Key performance ratios:











Return on common equity – GAAP ⁽²⁾⁽⁴⁾

7.89
%


8.40
%


5.20
%


7.53
%


7.14
%


Return on common equity – operating ^(1)(2)(4)

8.01



8.60



7.82



8.12



7.34



Return on tangible common equity – operating ^(1)(2)(3)(4)

11.21



12.12



11.17



11.68



10.68



Return on assets – GAAP ⁽⁴⁾

1.02



1.06



0.67



0.97



0.90



Return on assets – operating ⁽¹⁾⁽⁴⁾

1.04



1.08



1.01



1.04



0.93



Return on assets – pre-tax pre-provision, excluding non-operating items ^(1)(4)(5)

1.55



1.55



1.50



1.54



1.40



Net interest margin (fully taxable equivalent) ⁽⁴⁾

3.36



3.26



3.33



3.37



3.20



Efficiency ratio – GAAP

56.74



56.05



65.51



59.70



60.47



Efficiency ratio – operating ⁽¹⁾

56.22



55.18



57.37



57.06



59.15



Equity to total assets

12.56



12.38



12.45



12.35



12.06



Tangible common equity to tangible assets ⁽³⁾

9.18



8.97



8.93



8.78



8.49



ASSET QUALITY











Nonperforming assets ("NPAs")
$
93,290


$
115,635


$
114,960


$
116,722


$
107,230


(13
)
Allowance for credit losses – loans

211,974



206,998



205,290



213,022



210,934


—

Allowance for credit losses – total

223,201



217,389



215,517



224,740



224,119


—

Net charge-offs

9,607



9,517



23,651



11,614



12,908



Allowance for credit losses – loans to loans

1.15
%


1.14
%


1.14
%


1.17
%


1.15
%


Allowance for credit losses – total to loans

1.21



1.20



1.20



1.23



1.22



Net charge-offs to average loans ⁽⁴⁾

0.21



0.21



0.52



0.26



0.28



NPAs to total assets

0.33



0.42



0.42



0.43



0.39



AT PERIOD END ($ in millions)











Loans
$
18,425


$
18,176


$
17,964


$
18,211


$
18,375


—

Investment securities

6,661



6,804



6,425



6,038



5,859


14

Total assets

27,874



27,720



27,373



27,057



27,365


2

Deposits

23,762



23,461



23,253



22,982



23,332


2

Shareholders’ equity

3,501



3,432



3,407



3,343



3,300


6

Common shares outstanding (thousands)

119,514



119,364



119,283



119,175



119,137


—


^{(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)




2025



2024



First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter











Noninterest income reconciliation










Noninterest income (GAAP)

$
35,656


$
40,522


$
8,091


$
36,556


$
39,587

Loss on sale of manufactured housing loans


—



—



27,209



—



—

Gain on lease termination


—



—



—



—



(2,400
)
Noninterest income – operating

$
35,656


$
40,522


$
35,300


$
36,556


$
37,187












Noninterest expense reconciliation










Noninterest expenses (GAAP)

$
141,099


$
143,056


$
143,065


$
147,044


$
145,002

Loss on FinTrust (goodwill impairment)


—



—



—



(5,100
)


—

FDIC special assessment


—



—



—



764



(2,500
)
Merger-related and other charges


(1,297
)


(2,203
)


(2,176
)


(2,157
)


(2,087
)
Noninterest expenses – operating

$
139,802


$
140,853


$
140,889


$
140,551


$
140,415












Net income to operating income reconciliation










Net income (GAAP)

$
71,413


$
75,804


$
47,347


$
66,615


$
62,631

Loss on sale of manufactured housing loans


—



—



27,209



—



—

Gain on lease termination


—



—



—



—



(2,400
)
Loss on FinTrust (goodwill impairment)


—



—



—



5,100



—

FDIC special assessment


—



—



—



(764
)


2,500

Merger-related and other charges


1,297



2,203



2,176



2,157



2,087

Income tax benefit of non-operating items


(281
)


(471
)


(6,276
)


(1,462
)


(493
)
Net income – operating

$
72,429


$
77,536


$
70,456


$
71,646


$
64,325












Net income to pre-tax pre-provision income reconciliation










Net income (GAAP)

$
71,413


$
75,804


$
47,347


$
66,615


$
62,631

Income tax expense


19,746



20,606



12,437



19,362



18,204

Provision for credit losses


15,419



11,389



14,428



12,235



12,899

Pre-tax pre-provision income

$
106,578


$
107,799


$
74,212


$
98,212


$
93,734












Diluted income per common share reconciliation










Diluted income per common share (GAAP)

$
0.58


$
0.61


$
0.38


$
0.54


$
0.51

Loss on sale of manufactured housing loans


—



—



0.18



—



—

Gain on lease termination


—



—



—



—



(0.02
)
Loss on FinTrust (goodwill impairment)


—



—



—



0.03



—

FDIC special assessment


—



—



—



—



0.02

Merger-related and other charges


0.01



0.02



0.01



0.01



0.01

Diluted income per common share – operating

$
0.59


$
0.63


$
0.57


$
0.58


$
0.52












Book value per common share reconciliation










Book value per common share (GAAP)

$
28.42


$
27.87


$
27.68


$
27.18


$
26.83

Effect of goodwill and other intangibles


(7.84
)


(7.87
)


(8.02
)


(8.05
)


(8.12
)
Tangible book value per common share

$
20.58


$
20.00


$
19.66


$
19.13


$
18.71












Return on tangible common equity reconciliation










Return on common equity (GAAP)


7.89
%


8.40
%


5.20
%


7.53
%


7.14
%
Loss on sale of manufactured housing loans


—



—



2.43



—



—

Gain on lease termination


—



—



—



—



(0.22
)
Loss on FinTrust (goodwill impairment)


—



—



—



0.46



—

FDIC special assessment


—



—



—



(0.07
)


0.23

Merger-related and other charges


0.12



0.20



0.19



0.20



0.19

Return on common equity – operating


8.01



8.60



7.82



8.12



7.34

Effect of goodwill and other intangibles


3.20



3.52



3.35



3.56



3.34

Return on tangible common equity – operating


11.21
%


12.12
%


11.17
%


11.68
%


10.68
%











Return on assets reconciliation










Return on assets (GAAP)


1.02
%


1.06
%


0.67
%


0.97
%


0.90
%
Loss on sale of manufactured housing loans


—



—



0.31



—



—

Gain on lease termination


—



—



—



—



(0.03
)
Loss on FinTrust (goodwill impairment)


—



—



—



0.06



—

FDIC special assessment


—



—



—



(0.01
)


0.03

Merger-related and other charges


0.02



0.02



0.03



0.02



0.03

Return on assets – operating


1.04
%


1.08
%


1.01
%


1.04
%


0.93
%











Return on assets to return on assets – pre-tax pre-provision reconciliation










Return on assets (GAAP)


1.02
%


1.06
%


0.67
%


0.97
%


0.90
%
Income tax expense


0.29



0.30



0.19



0.29



0.27

Provision for credit losses


0.23



0.16



0.21



0.18



0.19

Loss on sale of manufactured housing loans


—



—



0.40



—



—

Gain on lease termination


—



—



—



—



(0.04
)
Loss on FinTrust (goodwill impairment)


—



—



—



0.08



—

FDIC special assessment


—



—



—



(0.01
)


0.04

Merger-related and other charges


0.01



0.03



0.03



0.03



0.04

Return on assets – pre-tax pre-provision – operating


1.55
%


1.55
%


1.50
%


1.54
%


1.40
%











Efficiency ratio reconciliation










Efficiency ratio (GAAP)


56.74
%


56.05
%


65.51
%


59.70
%


60.47
%
Loss on sale of manufactured housing loans


—



—



(7.15
)


—



—

Gain on lease termination


—



—



—



—



0.60

Loss on FinTrust (goodwill impairment)


—



—



—



(2.07
)


—

FDIC special assessment


—



—



—



0.31



(1.05
)
Merger-related and other charges


(0.52
)


(0.87
)


(0.99
)


(0.88
)


(0.87
)
Efficiency ratio – operating


56.22
%


55.18
%


57.37
%


57.06
%


59.15
%











Tangible common equity to tangible assets reconciliation










Equity to total assets (GAAP)


12.56
%


12.38
%


12.45
%


12.35
%


12.06
%
Effect of goodwill and other intangibles


(3.06
)


(3.09
)


(3.20
)


(3.24
)


(3.25
)
Effect of preferred equity


(0.32
)


(0.32
)


(0.32
)


(0.33
)


(0.32
)
Tangible common equity to tangible assets


9.18
%


8.97
%


8.93
%


8.78
%


8.49
%

UNITED COMMUNITY BANKS, INC.
Loan Portfolio Composition at Period-End



2025


2024

Linked Quarter Change

Year over Year Change
(in millions)
First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter


LOANS BY CATEGORY













Owner occupied commercial RE
$
3,419


$
3,398


$
3,323


$
3,297


$
3,310


$
21


$
109

Income producing commercial RE

4,416



4,361



4,259



4,058



4,206



55



210

Commercial & industrial

2,506



2,428



2,313



2,299



2,405



78



101

Commercial construction

1,681



1,656



1,785



2,014



1,936



25



(255
)
Equipment financing

1,723



1,663



1,603



1,581



1,544



60



179

Total commercial

13,745



13,506



13,283



13,249



13,401



239



344

Residential mortgage

3,218



3,232



3,263



3,266



3,240



(14
)


(22
)
Home equity

1,099



1,065



1,015



985



969



34



130

Residential construction

171



178



189



211



257



(7
)


(86
)
Manufactured housing ⁽¹⁾

—



2



2



321



328



(2
)


(328
)
Consumer

183



186



188



183



180



(3
)


3

Other

9



7



24



(4
)


—



2



9

Total loans
$
18,425


$
18,176


$
17,964


$
18,211


$
18,375


$
249


$
50















LOANS BY MARKET













Georgia
$
4,484


$
4,447


$
4,470


$
4,411


$
4,356


$
37


$
128

South Carolina

2,821



2,815



2,782



2,779



2,804



6



17

North Carolina

2,666



2,644



2,586



2,591



2,566



22



100

Tennessee

1,880



1,799



1,848



2,144



2,209



81



(329
)
Florida

2,572



2,527



2,423



2,407



2,443



45



129

Alabama

1,009



996



996



1,021



1,068



13



(59
)
Commercial Banking Solutions

2,993



2,948



2,859



2,858



2,929



45



64

Total loans
$
18,425


$
18,176


$
17,964


$
18,211


$
18,375


$
249


$
50


^{(1) At March 31, 2025, manufactured housing loans are included with consumer loans.}

UNITED COMMUNITY BANKS, INC.
Credit Quality
(in thousands)




2025


2024


First Quarter

Fourth Quarter

Third Quarter
NONACCRUAL LOANS






Owner occupied RE

$
8,949


$
11,674


$
7,783

Income producing RE


16,536



25,357



31,222

Commercial & industrial


22,396



29,339



28,856

Commercial construction


5,558



7,400



7,356

Equipment financing


8,818



8,925



9,123

Total commercial


62,257



82,695



84,340

Residential mortgage


22,756



24,615



21,851

Home equity


4,091



4,630



4,111

Residential construction


811



57



118

Manufactured housing ⁽²⁾


—



1,444



1,808

Consumer


1,423



138



152

Total nonaccrual loans


91,338



113,579



112,380

OREO and repossessed assets


1,952



2,056



2,580

Total NPAs

$
93,290


$
115,635


$
114,960



2025


2024

First Quarter

Fourth Quarter

Third 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
$
126


0.02
%

$
(184
)

(0.02
)%

$
(184
)

(0.02
)%
Income producing RE

718


0.07



(1,001
)

(0.09
)


1,409


0.13

Commercial & industrial

2,447


0.40



4,075


0.69



4,577


0.79

Commercial construction

(138
)

(0.03
)


2


—



36


0.01

Equipment financing

5,042


1.21



5,812


1.43



5,268


1.32

Total commercial

8,195


0.24



8,704


0.26



11,106


0.33

Residential mortgage

(1
)

—



145


0.02



32


—

Home equity

(62
)

(0.02
)


(33
)

(0.01
)


36


0.01

Residential construction

219


0.51



7


0.02



111


0.22

Manufactured housing ⁽²⁾

—


—



114


23.41



11,556


28.51

Consumer

1,256


2.76



580


1.24



810


1.74

Total
$
9,607


0.21


$
9,517


0.21


$
23,651


0.52














^{(1) Annualized.}












^{(2) At March 31, 2025, manufactured housing loans are included with consumer loans.}

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

March 31, 2025

December 31, 2024
ASSETS




Cash and due from banks

$
198,287


$
296,161

Interest-bearing deposits in banks


438,425



223,712

Cash and cash equivalents


636,712



519,873

Debt securities available-for-sale


4,322,644



4,436,291

Debt securities held-to-maturity (fair value $1,952,235 and $1,944,126, respectively)


2,338,571



2,368,107

Loans held for sale


37,344



57,534

Loans and leases held for investment


18,425,365



18,175,980

Less allowance for credit losses – loans and leases


(211,974
)


(206,998
)
Loans and leases, net


18,213,391



17,968,982

Premises and equipment, net


391,020



394,264

Bank owned life insurance


346,410



346,234

Goodwill and other intangible assets, net


953,357



956,643

Other assets


634,269



672,330

Total assets

$
27,873,718


$
27,720,258

LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
6,257,032


$
6,211,182

NOW and interest-bearing demand


6,155,141



6,141,342

Money market


6,637,506



6,398,144

Savings


1,105,374



1,100,591

Time


3,446,567



3,441,424

Brokered


160,785



168,292

Total deposits


23,762,405



23,460,975

Short-term borrowings


—



195,000

Long-term debt


254,287



254,152

Accrued expenses and other liabilities


356,130



378,004

Total liabilities


24,372,822



24,288,131

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, 119,514,298 and 119,364,110 shares issued and outstanding, respectively


119,514



119,364

Common stock issuable; 584,083 and 600,168 shares, respectively


12,983



12,999

Capital surplus


2,711,721



2,710,279

Retained earnings


754,971



714,138

Accumulated other comprehensive loss


(186,559
)


(212,919
)
Total shareholders' equity


3,500,896



3,432,127

Total liabilities and shareholders' equity

$
27,873,718


$
27,720,258

UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)



Three Months Ended March 31,
(in thousands, except per share data)


2025



2024

Interest revenue:




Loans, including fees

$
274,056


$
283,983

Investment securities, including tax exempt of $1,678 and $1,721, respectively


58,850



46,436

Deposits in banks and short-term investments


2,451



6,309

Total interest revenue


335,357



336,728






Interest expense:




Deposits:




NOW and interest-bearing demand


37,390



46,211

Money market


49,541



50,478

Savings


624



706

Time


31,379



36,389

Deposits


118,934



133,784

Short-term borrowings


1,107



—

Federal Home Loan Bank advances


433



—

Long-term debt


2,862



3,795

Total interest expense


123,336



137,579

Net interest revenue


212,021



199,149






Noninterest income:




Service charges and fees


9,535



9,264

Mortgage loan gains and other related fees


6,122



7,511

Wealth management fees


4,465



6,313

Net gains from sales of other loans


1,396



1,537

Lending and loan servicing fees


4,165



4,210

Securities gains, net


6



—

Other


9,967



10,752

Total noninterest income


35,656



39,587






Provision for credit losses


15,419



12,899






Noninterest expenses:




Salaries and employee benefits


84,267



84,985

Communications and equipment


13,699



11,920

Occupancy


10,929



11,099

Advertising and public relations


1,881



1,901

Postage, printing and supplies


2,561



2,648

Professional fees


5,931



5,988

Lending and loan servicing expense


1,987



1,827

Outside services – electronic banking


2,763



2,918

FDIC assessments and other regulatory charges


4,642



7,566

Amortization of intangibles


3,286



3,887

Merger-related and other charges


1,297



2,087

Other


7,856



8,176

Total noninterest expenses


141,099



145,002

Income before income taxes


91,159



80,835

Income tax expense


19,746



18,204

Net income


71,413



62,631

Preferred stock dividends


1,573



1,573

Earnings allocated to participating securities


411



345

Net income available to common shareholders

$
69,429


$
60,713






Net income per common share:




Basic

$
0.58


$
0.51

Diluted


0.58



0.51

Weighted average common shares outstanding:




Basic


120,043



119,662

Diluted


120,201



119,743

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended March 31,



2025



2024

*(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⁾
$
18,213,501


$
273,930


6.10
%

$
18,299,739


$
283,960


6.24
%
Taxable securities ⁽³⁾

6,737,658



57,172


3.39



5,828,391



44,715


3.07

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾

356,712



2,245


2.52



366,350



2,311


2.52

Federal funds sold and other interest-earning assets

400,592



3,001


3.04



674,594



6,805


4.06

Total interest-earning assets (FTE)

25,708,463



336,348


5.29



25,169,074



337,791


5.39













Noninterest-earning assets:











Allowance for credit losses

(210,169
)






(212,996
)




Cash and due from banks

219,540







221,203





Premises and equipment

396,443







386,021





Other assets ⁽³⁾

1,610,104







1,618,315





Total assets
$
27,724,381






$
27,181,617

















Liabilities and Shareholders' Equity:











Interest-bearing liabilities:











Interest-bearing deposits:











NOW and interest-bearing demand
$
6,134,004



37,390


2.47


$
6,078,090



46,211


3.06

Money market

6,583,963



49,541


3.05



5,864,217



50,478


3.46

Savings

1,096,308



624


0.23



1,192,828



706


0.24

Time

3,446,048



30,831


3.63



3,596,486



35,944


4.02

Brokered time deposits

50,447



548


4.41



50,343



445


3.56

Total interest-bearing deposits

17,310,770



118,934


2.79



16,781,964



133,784


3.21

Federal funds purchased and other borrowings

80,760



1,107


5.56



13



—


—

Federal Home Loan Bank advances

38,900



433


4.51



4



—


—

Long-term debt

254,220



2,862


4.57



324,838



3,795


4.70

Total borrowed funds

373,880



4,402


4.77



324,855



3,795


4.70

Total interest-bearing liabilities

17,684,650



123,336


2.83



17,106,819



137,579


3.23













Noninterest-bearing liabilities:











Noninterest-bearing deposits

6,194,217







6,398,079





Other liabilities

369,939







390,451





Total liabilities

24,248,806







23,895,349





Shareholders' equity

3,475,575







3,286,268





Total liabilities and shareholders' equity
$
27,724,381






$
27,181,617

















Net interest revenue (FTE)


$
213,012






$
200,212



Net interest-rate spread (FTE)




2.46
%





2.16
%
Net interest margin (FTE) ⁽⁴⁾




3.36
%





3.20
%

^{(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 $991,000 and $1.06 million, respectively, for the three months ended March 31, 2025 and 2024. The tax rate used to calculate the adjustment was 26%, 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 $269 million in 2025 and $322 million in 2024 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 committed to building stronger communities and improving the financial health and well-being of its customers. United Community offers a full range of banking, mortgage and wealth management services. As of March 31, 2025, United Community Banks, Inc. had $27.9 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. The company also manages a nationally recognized SBA lending franchise and a national equipment finance subsidiary, extending its reach to businesses across the country. United is an 11-time winner of J.D. Power’s award for highest customer satisfaction among consumer banks in the Southeast and was named the most trusted bank in the region in 2025. The company has also been recognized eight consecutive years by American Banker as one of the “Best Banks to Work For.” In commercial banking, United earned five 2025 Greenwich Best Brand awards, including national honors for middle market satisfaction. Forbes has consistently named United among the World’s Best and America’s Best Banks. Learn more at ucbi.com.

Non-GAAP Financial Measures
This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “noninterest income – operating”, “noninterest expense - operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets – pre-tax, pre-provision – operating,” “return on assets – pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology, and include statements related to the expected benefits of the acquisition of ANB Holdings, Inc. (“ANB”). Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed? they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.

Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the ANB acquisition may not be realized or take longer than anticipated to be realized, (2) disruption from the ANB acquisition of customer, supplier, employee or other business partner relationships, (3) the possibility that the costs, fees, expenses and charges related to the ANB acquisition may be greater than anticipated, (4) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to the ANB acquisition, (5) the failure of the ANB acquisition to close or any unexpected delay in closing the ANB acquisition, (6) the risks relating to the integration of ANB’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (7) the risks associated with United’s pursuit of future acquisitions, (8) the risk associated with expansion into new geographic or product markets, (9) the dilution caused by United’s issuance of additional shares of its common stock in the ANB acquisition, and (10) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2024, 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

Company Name:	United Community Banks Inc.
Stock Symbol:	UCB
Market:	NYSE
Website:	ucbi.com

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