UCB - United Community Banks, Inc. Reports Fourth Quarter and Full Year Results

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

GREENVILLE, S.C., Jan. 22, 2025 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the fourth quarter of 2024 of $75.8 million and pre-tax, pre-provision income of $108 million. Diluted earnings per share of $0.61 for the quarter represented an increase of $0.50 from the fourth quarter a year ago and an increase of $0.23 from the third quarter of 2024. As previously reported, the fourth quarter of 2023 included a loss from restructuring our investment securities portfolio and the third quarter of 2024 included the loss from the sale of manufactured housing loans. For the full year of 2024, net income was $252 million and pre-tax, pre-provision income was $374 million, compared with $188 million and $322 million, respectively, for 2023. Diluted earnings per share of $2.04 for 2024 were up $0.50 from $1.54 in 2023.

On an operating basis, United’s diluted earnings per share of $0.63 were up 19% from the year-ago quarter and up 11% from the third quarter of 2024. The primary drivers of the increased earnings per share year-over-year and for the third quarter were higher net interest income, higher noninterest income and a lower provision for credit losses, partly offset by a modest year-over-year increase in noninterest expense. For the full year of 2024, diluted operating earnings per share were $2.30, an increase of $0.19, or 9%, from the $2.11 reported in 2023.

United’s return on assets was 1.06%, or 1.08% on an operating basis. Return on common equity was 8.4% and return on tangible common equity on an operating basis was 12.1%. 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 8.97%, up four basis points from the third quarter of 2024.

Chairman and CEO Lynn Harton stated, “We are excited to report strong fourth quarter results. Loan growth returned to historical levels with loans increasing $212 million, or 5% annualized. We funded the new loans with customer deposits, which grew $213 million from third quarter. This growth allowed us to increase net interest income while experiencing some minor expected net interest margin compression. Credit quality remained stable with net charge offs dropping to 0.21% of average loans, the lowest level in two years, resulting in a lower provision for credit losses. Expenses were flat with the third quarter and core noninterest income increased modestly. On the strategic front, in December we announced an agreement to acquire American National Bank headquartered in Oakland Park, Florida, which will expand our presence in this fast-growing part of South Florida. I am excited to welcome Ginger Martin, American National Bank’s President and CEO, and her team of accomplished bankers to United.”

Harton continued, “These fourth quarter results reflect the efforts of our exceptional team, which I am very proud to be a part of. We ended 2024 with strong capital, ample liquidity, and momentum as we enter 2025.”

United’s net interest margin decreased seven basis points to 3.26% from the third quarter. The average yield on interest-earning assets was down 22 basis points to 5.33%, while the cost of interest-bearing liabilities decreased 23 basis points, leading to a one basis point increase in the net interest spread. The seven-basis point reduction in net interest margin reflects the impact of funding a portion of our balance sheet with noninterest bearing deposits that are not sensitive to changes in interest rates. Also contributing to the reduction in the net interest margin was a seasonal increase in public funds deposits and the sale of our manufactured housing loans in the third quarter.

Net charge-offs were $9.5 million, or 0.21% of average loans, during the quarter, down 31 basis points from the third quarter of 2024 which included transaction-related losses resulting from the sale of our manufactured housing portfolio. Nonperforming assets were 42 basis points relative to total assets, unchanged from the third quarter.

Harton concluded, “In 2025, we celebrate United’s seventy-fifth anniversary. We are proud of this milestone, and we are grateful for the trust and confidence our customers have placed in us for so many years. We are entering 2025 in a position of strength as we continue to pursue our goal of being a legendary bank to our customers, employees, and shareholders.”

Fourth Quarter 2024 Financial Highlights:

Net income of $75.8 million and pre-tax, pre-provision income of $108 million
EPS up $0.50 compared to fourth quarter 2023 on a GAAP basis and up $0.10, or 19%, on an operating basis; compared to third quarter 2024, EPS up $0.23 on a GAAP basis and up $0.06, or 11%, on an operating basis
Return on assets of 1.06%, or 1.08% on an operating basis
Pre-tax, pre-provision return on assets of 1.55% on an operating basis
Return on common equity of 8.4%
Return on tangible common equity of 12.1% on an operating basis
Provision for credit losses was $11.4 million; allowance for credit losses coverage remained stable at 1.20% of total loans
Net charge-offs of $9.5 million, or 21 basis points as a percent of average loans, benefitting from the absence of the manufactured housing portfolio
Nonperforming assets of 0.42% of total assets, unchanged from September 30, 2024
Loan production of $1.4 billion led to loan growth of $212 million, up 5% annualized, from third quarter
Customer deposits were up $213 million from the third quarter, with most of the growth in NOW and money market deposits
Net interest margin of 3.26% decreased by seven basis points from the third quarter, partly reflecting the sale of our manufactured housing portfolio in the third quarter and changing composition of our earning assets and interest-bearing liabilities
Mortgage closings of $246 million compared to $204 million a year ago; mortgage rate locks of $285 million compared to $223 million a year ago
Noninterest income was up $32.4 million on a linked quarter basis mostly due to the $27.2 million loss from the sale of manufactured housing loans in the third quarter. The remaining increase was primarily driven by the mark on our mortgage servicing rights asset.
Noninterest expenses remained relatively flat compared to the third quarter on both a GAAP basis and operating basis
Efficiency ratio of 56.1%, or 55.2% on an operating basis
Maintained robust capital ratios with preliminary Common Equity Tier 1 increasing to 13.2% and opportunistically redeemed $60 million of subordinated debentures, which lowered total risk-based capital ratio by approximately 30 basis points from the third quarter
Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year

2024 Financial Highlights:

Net income of $252 million and pre-tax, pre-provision income of $374 million
EPS up $0.50 compared to 2023 on a GAAP basis and up $0.19, or 9%, on an operating basis
Return on assets of 0.90%, or 1.02% on an operating basis
Pre-tax, pre-provision return on assets of 1.49% on an operating basis
Return on common equity of 7.1%
Return on tangible common equity of 11.4% on an operating basis

Conference Call

United will hold a conference call on Wednesday, January 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/10195478/fe2fad701a . Those without internet access or unable to pre-register may dial in by calling 1-844-481-1970. 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)





















2024



2023


Fourth Quarter 2024 - 2023 Change

For the Twelve Months Ended December 31,

YTD 2024 - 2023 Change


Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter



2024



2023


INCOME SUMMARY


















Interest revenue

$
344,962


$
349,086


$
346,965


$
336,728


$
338,698




$
1,377,741


$
1,237,107



Interest expense


134,629



139,900



138,265



137,579



135,245





550,373



419,342



Net interest revenue


210,333



209,186



208,700



199,149



203,453


3
%


827,368



817,765


1
%
Provision for credit losses


11,389



14,428



12,235



12,899



14,626


(22
)


50,951



89,430


(43
)
Noninterest income


40,522



8,091



36,556



39,587



(23,090
)




124,756



75,483


65

Total revenue


239,466



202,849



233,021



225,837



165,737


44



901,173



803,818


12

Noninterest expenses


143,056



143,065



147,044



145,002



154,587


(7
)


578,167



571,273


1

Income before income tax expense


96,410



59,784



85,977



80,835



11,150





323,006



232,545



Income tax (benefit) expense


20,606



12,437



19,362



18,204



(2,940
)




70,609



45,001



Net income


75,804



47,347



66,615



62,631



14,090


438



252,397



187,544


35

Non-operating items


2,203



29,385



6,493



2,187



67,450





40,268



88,894



Income tax benefit of non-operating items


(471
)


(6,276
)


(1,462
)


(493
)


(16,714
)




(8,702
)


(21,489
)


Net income - operating ⁽¹⁾

$
77,536


$
70,456


$
71,646


$
64,325


$
64,826


20


$
283,963


$
254,949


11




















Pre-tax pre-provision income ⁽⁵⁾

$
107,799


$
74,212


$
98,212


$
93,734


$
25,776


318


$
373,957


$
321,975


16

PERFORMANCE MEASURES


















Per common share:


















Diluted net income - GAAP

$
0.61


$
0.38


$
0.54


$
0.51


$
0.11


455


$
2.04


$
1.54


32

Diluted net income - operating ⁽¹⁾


0.63



0.57



0.58



0.52



0.53


19



2.30



2.11


9

Common stock cash dividends declared


0.24



0.24



0.23



0.23



0.23


4



0.94



0.92


2

Book value


27.87



27.68



27.18



26.83



26.52


5



27.87



26.52


5

Tangible book value ⁽³⁾


20.00



19.66



19.13



18.71



18.39


9



20.00



18.39


9

Key performance ratios:


















Return on common equity - GAAP ⁽²⁾⁽⁴⁾


8.40
%


5.20
%


7.53
%


7.14
%


1.44
%




7.07
%


5.34
%


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


8.60



7.82



8.12



7.34



7.27





7.97



7.33



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


12.12



11.17



11.68



10.68



10.58





11.42



10.63



Return on assets - GAAP ⁽⁴⁾


1.06



0.67



0.97



0.90



0.18





0.90



0.68



Return on assets - operating ⁽¹⁾⁽⁴⁾


1.08



1.01



1.04



0.93



0.92





1.02



0.94



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


1.55



1.50



1.54



1.40



1.33





1.49



1.53



Net interest margin (fully taxable equivalent) ⁽⁴⁾


3.26



3.33



3.37



3.20



3.19





3.29



3.35



Efficiency ratio - GAAP


56.05



65.51



59.70



60.47



66.33





60.24



60.09



Efficiency ratio - operating ⁽¹⁾


55.18



57.37



57.06



59.15



59.57





57.15



56.17



Equity to total assets


12.38



12.45



12.35



12.06



11.95





12.38



11.95



Tangible common equity to tangible assets ⁽³⁾


8.97



8.93



8.78



8.49



8.36





8.97



8.36



ASSET QUALITY


















Nonperforming assets (“NPAs”)

$
115,635


$
114,960


$
116,722


$
107,230


$
92,877


25


$
115,635


$
92,877


25

Allowance for credit losses - loans


206,998



205,290



213,022



210,934



208,071


(1
)


206,998



208,071


(1
)
Allowance for credit losses - total


217,389



215,517



224,740



224,119



224,128


(3
)


217,389



224,128


(3
)
Net charge-offs (recoveries)


9,517



23,651



11,614



12,908



10,122





57,690



52,243



Allowance for credit losses - loans to loans


1.14
%


1.14
%


1.17
%


1.15
%


1.14
%




1.14
%


1.14
%


Allowance for credit losses - total to loans


1.20



1.20



1.23



1.22



1.22





1.20



1.22



Net charge-offs to average loans ⁽⁴⁾


0.21



0.52



0.26



0.28



0.22





0.32



0.30



NPAs to total assets


0.42



0.42



0.43



0.39



0.34





0.42



0.34



AT PERIOD END ($ in millions)


















Loans

$
18,176


$
17,964


$
18,211


$
18,375


$
18,319


(1
)

$
18,176


$
18,319


(1
)
Investment securities


6,804



6,425



6,038



5,859



5,822


17



6,804



5,822


17

Total assets


27,720



27,373



27,057



27,365



27,297


2



27,720



27,297


2

Deposits


23,461



23,253



22,982



23,332



23,311


1



23,461



23,311


1

Shareholders’ equity


3,432



3,407



3,343



3,300



3,262


5



3,432



3,262


5

Common shares outstanding (thousands)


119,364



119,283



119,175



119,137



119,010


—



119,364



119,010


—

_{⁽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 Informatio n (in thousands, except per share data)

















2024



2023


Twelve Months Ended December 31,


Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter


2024



2023

Noninterest income reconciliation














Noninterest income (GAAP)

$
40,522


$
8,091


$
36,556


$
39,587


$
(23,090
)

$
124,756


$
75,483

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



—



51,689

Noninterest income - operating

$
40,522


$
35,300


$
36,556


$
37,187


$
28,599


$
149,565


$
127,172
















Noninterest expense reconciliation














Noninterest expenses (GAAP)

$
143,056


$
143,065


$
147,044


$
145,002


$
154,587


$
578,167


$
571,273

Loss on FinTrust (goodwill impairment)


—



—



(5,100
)


—



—



(5,100
)


—

FDIC special assessment


—



—



764



(2,500
)


(9,995
)


(1,736
)


(9,995
)
Merger-related and other charges


(2,203
)


(2,176
)


(2,157
)


(2,087
)


(5,766
)


(8,623
)


(27,210
)
Expenses - operating

$
140,853


$
140,889


$
140,551


$
140,415


$
138,826


$
562,708


$
534,068
















Net income to operating income reconciliation














Net income (GAAP)

$
75,804


$
47,347


$
66,615


$
62,631


$
14,090


$
252,397


$
187,544

Loss on sale of manufactured housing loans


—



27,209



—



—



—



27,209



—

Bond portfolio restructuring loss


—



—



—



—



51,689



—



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



9,995

Merger-related and other charges


2,203



2,176



2,157



2,087



5,766



8,623



27,210

Income tax benefit of non-operating items


(471
)


(6,276
)


(1,462
)


(493
)


(16,714
)


(8,702
)


(21,489
)
Net income - operating

$
77,536


$
70,456


$
71,646


$
64,325


$
64,826


$
283,963


$
254,949
















Net income to pre-tax pre-provision income reconciliation














Net income (GAAP)

$
75,804


$
47,347


$
66,615


$
62,631


$
14,090


$
252,397


$
187,544

Income tax expense (benefit)


20,606



12,437



19,362



18,204



(2,940
)


70,609



45,001

Provision for credit losses


11,389



14,428



12,235



12,899



14,626



50,951



89,430

Pre-tax pre-provision income

$
107,799


$
74,212


$
98,212


$
93,734


$
25,776


$
373,957


$
321,975
















Diluted income per common share reconciliation














Diluted income per common share (GAAP)

$
0.61


$
0.38


$
0.54


$
0.51


$
0.11


$
2.04


$
1.54

Loss on sale of manufactured housing loans


—



0.18



—



—



—



0.18



—

Bond portfolio restructuring loss


—



—



—



—



0.32



—



0.33

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



0.06

Merger-related and other charges


0.02



0.01



0.01



0.01



0.04



0.06



0.18

Diluted income per common share - operating

$
0.63


$
0.57


$
0.58


$
0.52


$
0.53


$
2.30


$
2.11
















Book value per common share reconciliation














Book value per common share (GAAP)

$
27.87


$
27.68


$
27.18


$
26.83


$
26.52


$
27.87


$
26.52

Effect of goodwill and other intangibles


(7.87
)


(8.02
)


(8.05
)


(8.12
)


(8.13
)


(7.87
)


(8.13
)
Tangible book value per common share

$
20.00


$
19.66


$
19.13


$
18.71


$
18.39


$
20.00


$
18.39
















Return on tangible common equity reconciliation














Return on common equity (GAAP)


8.40
%


5.20
%


7.53
%


7.14
%


1.44
%


7.07
%


5.34
%
Loss on sale of manufactured housing loans


—



2.43



—



—



—



0.61



—

Bond portfolio restructuring loss


—



—



—



—



4.47



—



1.15

Gain on lease termination


—



—



—



(0.22
)


—



(0.05
)


—

Loss on FinTrust (goodwill impairment)


—



—



0.46



—



—



0.11



—

FDIC special assessment


—



—



(0.07
)


0.23



0.86



0.04



0.22

Merger-related and other charges


0.20



0.19



0.20



0.19



0.50



0.19



0.62

Return on common equity - operating


8.60



7.82



8.12



7.34



7.27



7.97



7.33

Effect of goodwill and other intangibles


3.52



3.35



3.56



3.34



3.31



3.45



3.30

Return on tangible common equity - operating


12.12
%


11.17
%


11.68
%


10.68
%


10.58
%


11.42
%


10.63
%















Return on assets reconciliation














Return on assets (GAAP)


1.06
%


0.67
%


0.97
%


0.90
%


0.18
%


0.90
%


0.68
%
Loss on sale of manufactured housing loans


—



0.31



—



—



—



0.08



—

Bond portfolio restructuring loss


—



—



—



—



0.57



—



0.15

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



0.03

Merger-related and other charges


0.02



0.03



0.02



0.03



0.06



0.02



0.08

Return on assets - operating


1.08
%


1.01
%


1.04
%


0.93
%


0.92
%


1.02
%


0.94
%















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














Return on assets (GAAP)


1.06
%


0.67
%


0.97
%


0.90
%


0.18
%


0.90
%


0.68
%
Income tax expense (benefit)


0.30



0.19



0.29



0.27



(0.04
)


0.26



0.17

Provision for credit losses


0.16



0.21



0.18



0.19



0.21



0.19



0.34

Loss on sale of manufactured housing loans


—



0.40



—



—



—



0.09



—

Bond portfolio restructuring loss


—



—



—



—



0.75



—



0.20

Gain on lease termination


—



—



—



(0.04
)


—



(0.01
)


—

Loss on FinTrust (goodwill impairment)


—



—



0.08



—



—



0.02



—

FDIC special assessment


—



—



(0.01
)


0.04



0.15



0.01



0.04

Merger-related and other charges


0.03



0.03



0.03



0.04



0.08



0.03



0.10

Return on assets - pre-tax pre-provision, excluding non-operating items


1.55
%


1.50
%


1.54
%


1.40
%


1.33
%


1.49
%


1.53
%















Efficiency ratio reconciliation














Efficiency ratio (GAAP)


56.05
%


65.51
%


59.70
%


60.47
%


66.33
%


60.24
%


60.09
%
Loss on sale of manufactured housing loans


—



(7.15
)


—



—



—



(1.63
)


—

Gain on lease termination


—



—



—



0.60



—



0.15



—

Loss on FinTrust (goodwill impairment)


—



—



(2.07
)


—



—



(0.53
)


—

FDIC special assessment


—



—



0.31



(1.05
)


(4.29
)


(0.18
)


(1.05
)
Merger-related and other charges


(0.87
)


(0.99
)


(0.88
)


(0.87
)


(2.47
)


(0.90
)


(2.87
)
Efficiency ratio - operating


55.18
%


57.37
%


57.06
%


59.15
%


59.57
%


57.15
%


56.17
%















Tangible common equity to tangible assets reconciliation














Equity to total assets (GAAP)


12.38
%


12.45
%


12.35
%


12.06
%


11.95
%


12.38
%


11.95
%
Effect of goodwill and other intangibles


(3.09
)


(3.20
)


(3.24
)


(3.25
)


(3.27
)


(3.09
)


(3.27
)
Effect of preferred equity


(0.32
)


(0.32
)


(0.33
)


(0.32
)


(0.32
)


(0.32
)


(0.32
)
Tangible common equity to tangible assets


8.97
%


8.93
%


8.78
%


8.49
%


8.36
%


8.97
%


8.36
%

UNITED COMMUNITY BANKS, INC.












Financial Highlights












Loan Portfolio Composition at Period-End












(in millions)















2024


2023

Linked Quarter Change

Year over Year Change

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter


LOANS BY CATEGORY













Owner occupied commercial RE
$
3,398

$
3,323

$
3,297


$
3,310

$
3,264

$
75


$
134

Income producing commercial RE

4,361


4,259


4,058



4,206


4,264


102



97

Commercial & industrial

2,428


2,313


2,299



2,405


2,411


115



17

Commercial construction

1,656


1,785


2,014



1,936


1,860


(129
)


(204
)
Equipment financing

1,663


1,603


1,581



1,544


1,541


60



122

Total commercial

13,506


13,283


13,249



13,401


13,340


223



166

Residential mortgage

3,232


3,263


3,266



3,240


3,199


(31
)


33

Home equity lines of credit

1,065


1,015


985



969


959


50



106

Residential construction

178


189


211



257


302


(11
)


(124
)
Manufactured housing

2


2


321



328


336


—



(334
)
Consumer

186


188


183



180


181


(2
)


5

Other

7


24


(4
)


—


2


(17
)


5

Total loans
$
18,176

$
17,964

$
18,211


$
18,375

$
18,319

$
212


$
(143
)














LOANS BY STATE













Georgia
$
4,447

$
4,470

$
4,411


$
4,356

$
4,357

$
(23
)

$
90

South Carolina

2,815


2,782


2,779



2,804


2,780


33



35

North Carolina

2,644


2,586


2,591



2,566


2,492


58



152

Tennessee

1,799


1,848


2,144



2,209


2,244


(49
)


(445
)
Florida

2,527


2,423


2,407



2,443


2,442


104



85

Alabama

996


996


1,021



1,068


1,082


—



(86
)
Commercial Banking Solutions

2,948


2,859


2,858



2,929


2,922


89



26

Total loans
$
18,176

$
17,964

$
18,211


$
18,375

$
18,319

$
212


$
(143
)

UNITED COMMUNITY BANKS, INC.








Financial Highlights








Loan Portfolio Composition at Year-End








(in millions)











2024


2023


2022


2021


2020
LOANS BY CATEGORY









Owner occupied commercial RE
$
3,398

$
3,264

$
2,735

$
2,322

$
2,090
Income producing commercial RE

4,361


4,264


3,262


2,601


2,541
Commercial & industrial

2,428


2,411


2,252


1,910


2,499
Commercial construction

1,656


1,860


1,598


1,015


967
Equipment financing

1,663


1,541


1,374


1,083


864
Total commercial

13,506


13,340


11,221


8,931


8,961
Residential mortgage

3,232


3,199


2,355


1,638


1,285
Home equity

1,065


959


850


694


697
Residential construction

178


302


443


359


281
Manufactured housing

2


336


317


—


—
Consumer

186


181


149


138


147
Other

7


2


—


—


—
Total loans
$
18,176

$
18,319

$
15,335

$
11,760

$
11,371










LOANS BY STATE









Georgia
$
4,447

$
4,357

$
4,051

$
3,778

$
3,685
South Carolina

2,815


2,780


2,587


2,235


1,947
North Carolina

2,644


2,492


2,186


1,895


1,281
Tennessee

1,799


2,244


2,507


373


415
Florida

2,527


2,442


1,308


1,148


1,435
Alabama

996


1,082


—


—


—
Commercial Banking Solutions

2,948


2,922


2,696


2,331


2,608
Total loans
$
18,176

$
18,319

$
15,335

$
11,760

$
11,371

UNITED COMMUNITY BANKS, INC.






Financial Highlights






Credit Quality






(in thousands)








2024


Fourth Quarter

Third Quarter

Second Quarter
NONACCRUAL LOANS






Owner occupied RE

$
11,674

$
7,783

$
4,820
Income producing RE


25,357


31,222


34,285
Commercial & industrial


29,339


28,856


17,335
Commercial construction


7,400


7,356


6,854
Equipment financing


8,925


9,123


8,341
Total commercial


82,695


84,340


71,635
Residential mortgage


24,615


21,851


18,473
Home equity


4,630


4,111


3,779
Residential construction


57


118


163
Manufactured housing


1,444


1,808


20,356
Consumer


138


152


72
Total nonaccrual loans


113,579


112,380


114,478
OREO and repossessed assets


2,056


2,580


2,244
Total NPAs

$
115,635

$
114,960

$
116,722




2024



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

$
(184
)

(0.02
)%

$
(184
)

(0.02
)%

$
163


0.02
%
Income producing RE


(1,001
)

(0.09
)


1,409


0.13



2,968


0.29

Commercial & industrial


4,075


0.69



4,577


0.79



1,281


0.22

Commercial construction


2


—



36


0.01



(48
)

(0.01
)
Equipment financing


5,812


1.43



5,268


1.32



5,502


1.42

Total commercial


8,704


0.26



11,106


0.33



9,866


0.30

Residential mortgage


145


0.02



32


—



(107
)

(0.01
)
Home equity


(33
)

(0.01
)


36


0.01



(27
)

(0.01
)
Residential construction


7


0.02



111


0.22



26


0.04

Manufactured housing


114


23.41



11,556


28.51



1,150


1.43

Consumer


580


1.24



810


1.74



706


1.57

Total

$
9,517


0.21


$
23,651


0.52


$
11,614


0.26















⁽¹⁾ Annualized.

UNITED COMMUNITY BANKS, INC.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)



December 31, 2024

December 31, 2023
ASSETS




Cash and due from banks

$
296,161


$
200,781

Interest-bearing deposits in banks


223,712



803,094

Cash and cash equivalents


519,873



1,003,875

Debt securities available-for-sale


4,436,291



3,331,084

Debt securities held-to-maturity (fair value $1,944,126 and $2,095,620, respectively)


2,368,107



2,490,848

Loans held for sale


57,534



33,008

Loans and leases held for investment


18,175,980



18,318,755

Less allowance for credit losses - loans and leases


(206,998
)


(208,071
)
Loans and leases, net


17,968,982



18,110,684

Premises and equipment, net


394,264



378,421

Bank owned life insurance


346,234



345,371

Accrued interest receivable


85,616



87,782

Net deferred tax asset


96,982



113,214

Derivative financial instruments


46,883



50,352

Goodwill and other intangible assets, net


956,643



990,087

Other assets


442,849



362,525

Total assets

$
27,720,258


$
27,297,251

LIABILITIES AND SHAREHOLDERS’ EQUITY




Liabilities:




Deposits:




Noninterest-bearing demand

$
6,211,182


$
6,534,307

NOW and interest-bearing demand


6,141,342



6,155,193

Money market


6,398,144



5,600,587

Savings


1,100,591



1,207,807

Time


3,441,424



3,649,498

Brokered


168,292



163,219

Total deposits


23,460,975



23,310,611

Short-term borrowings


195,000



—

Long-term debt


254,152



324,823

Derivative financial instruments


77,834



84,811

Accrued expenses and other liabilities


300,170



315,481

Total liabilities


24,288,131



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; 119,364,110 and 119,010,319 shares issued and outstanding, respectively


119,364



119,010

Common stock issuable; 600,168 and 620,108 shares, respectively


12,999



13,110

Capital surplus


2,710,279



2,699,112

Retained earnings


714,138



581,219

Accumulated other comprehensive loss


(212,919
)


(239,192
)
Total shareholders’ equity


3,432,127



3,261,525

Total liabilities and shareholders’ equity

$
27,720,258


$
27,297,251

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,



2024



2023



2024



2023

Interest revenue:








Loans, including fees

$
280,325


$
281,909


$
1,147,477


$
1,042,605

Investment securities, including tax exempt of $1,701, $1,732, $6,834 and $7,295


57,127



44,025



206,623



169,800

Deposits in banks and short-term investments


7,510



12,764



23,641



24,702

Total interest revenue


344,962



338,698



1,377,741



1,237,107

Interest expense:








Deposits:








NOW and interest-bearing demand


42,012



44,527



175,534



125,336

Money market


53,859



50,967



214,742



156,397

Savings


652



758



2,717



2,866

Time


34,601



35,511



142,526



110,975

Deposits


131,124



131,763



535,519



395,574

Short-term borrowings


44



9



131



3,195

Federal Home Loan Bank advances


—



—



—



5,761

Long-term debt


3,461



3,473



14,723



14,812

Total interest expense


134,629



135,245



550,373



419,342

Net interest revenue


210,333



203,453



827,368



817,765

Provision for credit losses


11,389



14,626



50,951



89,430

Net interest revenue after provision for credit losses


198,944



188,827



776,417



728,335

Noninterest income:








Service charges and fees


10,622



9,621



40,994



38,412

Mortgage loan gains and related fees


9,737



1,956



27,567



19,220

Wealth management fees


4,658



5,965



23,695



23,740

Net gains (losses) from sale of other loans


1,583



2,237



(21,284
)


9,146

Other lending and loan servicing fees


3,346



3,994



14,396



13,973

Securities losses, net


(3,316
)


(51,689
)


(3,316
)


(53,333
)
Other


13,892



4,826



42,704



24,325

Total noninterest income


40,522



(23,090
)


124,756



75,483

Total revenue


239,466



165,737



901,173



803,818

Noninterest expenses:








Salaries and employee benefits


85,707



82,343



340,043



318,464

Occupancy


10,840



11,616



44,306



42,640

Communications and equipment


12,715



11,610



49,249



43,264

FDIC assessments and other regulatory charges


3,942



14,992



20,978



27,449

Professional fees


6,268



7,062



24,732



26,732

Lending and loan servicing expense


2,311



2,176



8,379



9,722

Outside services - electronic banking


3,540



2,931



13,703



11,577

Postage, printing and supplies


2,491



2,162



9,867



9,467

Advertising and public relations


2,145



2,559



8,546



9,473

Amortization of intangibles


3,387



4,055



14,596



15,175

Merger-related and other charges


2,203



5,766



8,623



27,210

Other


7,507



7,315



35,145



30,100

Total noninterest expenses


143,056



154,587



578,167



571,273

Net income before income taxes


96,410



11,150



323,006



232,545

Income tax expense (benefit)


20,606



(2,940
)


70,609



45,001

Net income

$
75,804


$
14,090


$
252,397


$
187,544

Preferred stock dividends, net of discount on repurchases


1,574



1,395



6,293



5,665

Earnings allocated to participating securities


503



77



1,478



1,032

Net income available to common shareholders

$
73,727


$
12,618


$
244,626


$
180,847

Net income per common share:








Basic

$
0.61


$
0.11


$
2.04


$
1.54

Diluted


0.61



0.11



2.04



1.54

Weighted average common shares outstanding:








Basic


119,924



119,612



119,783



117,603

Diluted


120,111



119,713



119,900



117,745

Average Consolidated Balance Sheets and Net Interest Analysis

For the Three Months Ended December 31,

(dollars in thousands, fully taxable equivalent (FTE))




2024



2023



Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate
Assets:












Interest-earning assets:












Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾

$
17,934,730


$
279,938

6.21
%

$
18,167,572


$
281,776

6.15
%
Taxable securities ⁽³⁾


6,722,655



55,426

3.30



5,772,630



42,293

2.93

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾


359,569



2,276

2.53



367,585



2,326

2.53

Federal funds sold and other interest-earning assets


812,962



8,396

4.11



1,092,939



13,294

4.83

Total interest-earning assets (FTE)


25,829,916



346,036

5.33



25,400,726



339,689

5.31














Noninterest-earning assets:












Allowance for loan losses


(208,788
)






(204,631
)




Cash and due from banks


228,601







210,383





Premises and equipment


398,794







377,765





Other assets ⁽³⁾


1,606,297







1,516,268





Total assets

$
27,854,820






$
27,300,511


















Liabilities and Shareholders’ Equity:












Interest-bearing liabilities:












Interest-bearing deposits:












NOW and interest-bearing demand

$
6,313,325



42,012

2.65


$
5,961,835



44,527

2.96

Money market


6,474,284



53,859

3.31



5,799,213



50,967

3.49

Savings


1,105,572



652

0.23



1,227,708



758

0.24

Time


3,472,161



34,030

3.90



3,611,790



35,117

3.86

Brokered time deposits


50,406



571

4.51



60,583



394

2.58

Total interest-bearing deposits


17,415,748



131,124

3.00



16,661,129



131,763

3.14

Federal funds purchased and other borrowings


3,859



44

4.54



7,958



9

0.45

Long-term debt


303,523



3,461

4.54



324,801



3,473

4.24

Total borrowed funds


307,382



3,505

4.54



332,759



3,482

4.15

Total interest-bearing liabilities


17,723,130



134,629

3.02



16,993,888



135,245

3.16














Noninterest-bearing liabilities:












Noninterest-bearing deposits


6,275,493







6,690,251





Other liabilities


454,891







410,067





Total liabilities


24,453,514







24,094,206





Shareholders’ equity


3,401,306







3,206,305





Total liabilities and shareholders’ equity

$
27,854,820






$
27,300,511


















Net interest revenue (FTE)



$
211,407





$
204,444


Net interest-rate spread (FTE)





2.31
%





2.15
%
Net interest margin (FTE) ⁽⁴⁾





3.26
%





3.19
%

_{⁽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 $1.07 million and $991,000, respectively, for the three months ended December 31, 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 $261 million in 2024 and $458 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.}

Average Consolidated Balance Sheets and Net Interest Analysis

For the Twelve Months Ended December 31,

(dollars in thousands, fully taxable equivalent (FTE))




2024



2023



Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate
Assets:












Interest-earning assets:












Loans, net of unearned income (FTE) ⁽¹⁾⁽²⁾

$
18,124,179


$
1,146,440

6.33
%

$
17,576,424


$
1,042,578

5.93
%
Taxable securities ⁽³⁾


6,172,942



199,789

3.24



5,929,687



162,505

2.74

Tax-exempt securities (FTE) ⁽¹⁾⁽³⁾


362,655



9,152

2.52



381,731



9,796

2.57

Federal funds sold and other interest-earning assets


623,426



26,652

4.28



642,499



26,397

4.11

Total interest-earning assets (FTE)


25,283,202



1,382,033

5.47



24,530,341



1,241,276

5.06














Non-interest-earning assets:












Allowance for loan losses


(212,968
)






(191,016
)




Cash and due from banks


215,411







239,574





Premises and equipment


394,127







355,139





Other assets ⁽³⁾


1,611,405







1,517,940





Total assets

$
27,291,177






$
26,451,978


















Liabilities and Shareholders’ Equity:












Interest-bearing liabilities:












Interest-bearing deposits:












NOW and interest-bearing demand

$
6,014,052



175,534

2.92


$
5,161,071



125,336

2.43

Money market


6,188,579



214,742

3.47



5,462,677



156,397

2.86

Savings


1,146,305



2,717

0.24



1,312,469



2,866

0.22

Time


3,519,461



140,229

3.98



3,106,989



100,973

3.25

Brokered time deposits


50,359



2,297

4.56



224,914



10,002

4.45

Total interest-bearing deposits


16,918,756



535,519

3.17



15,268,120



395,574

2.59

Federal funds purchased and other borrowings


2,468



131

5.31



75,965



3,195

4.21

Federal Home Loan Bank advances


4



—

—



124,425



5,761

4.63

Long-term debt


319,163



14,723

4.61



324,753



14,812

4.56

Total borrowed funds


321,635



14,854

4.62



525,143



23,768

4.53

Total interest-bearing liabilities


17,240,391



550,373

3.19



15,793,263



419,342

2.66














Noninterest-bearing liabilities:












Noninterest-bearing deposits


6,299,019







7,091,034





Other liabilities


409,547







397,337





Total liabilities


23,948,957







23,281,634





Shareholders’ equity


3,342,220







3,170,344





Total liabilities and shareholders’ equity

$
27,291,177






$
26,451,978


















Net interest revenue (FTE)



$
831,660





$
821,934


Net interest-rate spread (FTE)





2.27
%





2.40
%
Net interest margin (FTE) ⁽⁴⁾





3.29
%





3.35
%

_{⁽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 $4.29 million and $4.17 million, respectively, for 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 $306 million in 2024 and $424 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 December 31, 2024, United Community Banks, Inc. had $27.7 billion in assets, 199 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 2024, United was named by American Banker as one of the “Best Banks to Work For” for the eighth 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, 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, 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

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

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