• United Community Banks, Inc. Reports Second Quarter Results

    Source: Nasdaq GlobeNewswire / 24 Jul 2024 06:45:01   America/Chicago

    GREENVILLE, S.C., July 24, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the 2024 second quarter was $66.6 million and pre-tax, pre-provision income was $98.2 million. Diluted earnings per share of $0.54 for the quarter represented an increase of $0.01, or 2%, from the second quarter a year ago and an increase of $0.03, or 6%, from the first quarter of 2024.

    On an operating basis, United’s diluted earnings per share of $0.58 was up 5% 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 linked-quarter increase in earnings per share was primarily driven by higher net interest income. United’s return on assets was 0.97%, or 1.04% on an operating basis. Return on equity was 7.53% and return on tangible common equity was 11.68%. On a pre-tax, pre-provision basis, operating return on assets was 1.54% for the quarter. At quarter end, tangible common equity to tangible assets was 8.78%, up 29 basis points from the first quarter of 2024.

    Chairman and CEO Lynn Harton stated, “Our second quarter results showed solid improvement, driven by healthy net interest margin expansion and disciplined expense control. We achieved these results by remaining sharply focused on loan and deposit pricing even if that meant accepting slower growth in the near term. Compared with the first quarter, we saw decreases in both loans and deposits, yet our pricing discipline led to a $9.55 million increase in net interest income. We expect loan growth to be weaker in the near term as customers appear to be taking a conservative approach to economic and election uncertainty.” Harton continued, “On the strategic front, after an evaluation of our entire wealth management business, we made the decision to sell our investment in our Registered Investment Advisor, FinTrust Capital Advisors, LLC (FinTrust), while setting a more aggressive growth course for our Private Banking, Retail, and Trust businesses. We view the Private Banking, Retail and Trust as more attractive in the medium to long term, and decided to focus our Wealth resources in these businesses. We expect the FinTrust transaction to close in the third quarter.”

    United’s net interest margin increased by 17 basis points to 3.37% from the first quarter. The average yield on United’s interest-earning assets was up 20 basis points to 5.59%, while its cost of deposits increased only three basis points to 2.35%, leading to expansion in the net interest margin. Net charge-offs were $11.6 million or 0.26% of average loans during the quarter, down two basis points compared to the first quarter of 2024, and NPAs were 43 basis points relative to total assets, up four basis points from the previous quarter.

    Mr. Harton concluded, “Our second quarter results give me tremendous confidence that 2024 will be a great year for United. We remain focused on being a great partner for our clients and communities; growing our business and remaining disciplined in the face of any challenges that lie ahead. We are steadfast in our commitment to service as well as delivering exceptional value to our shareholders.”

    Second Quarter 2024 Financial Highlights:

    • Net income of $66.6 million and pre-tax, pre-provision income of $98.2 million
    • EPS up 2% compared to second quarter 2023 on a GAAP basis and up 5% on an operating basis; compared to first quarter 2024, EPS up 6% on a GAAP basis and 12% on an operating basis
    • Return on assets of 0.97%, or 1.04% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.54% on an operating basis
    • Return on common equity of 7.53%
    • Return on tangible common equity of 11.68% on an operating basis
    • A provision for credit losses of $12.2 million, which increased the allowance for credit losses-loans to 1.17% of loans from 1.15% in the first quarter.
    • Loan production of $989 million, up from $881 million in the first quarter
    • Customer deposits were down $339 million for the quarter, as seasonal public funds deposit outflow combined with more conservative public funds deposit pricing
    • Net interest margin of 3.37% increased by 17 basis points from the first quarter mostly due to focus on pricing discipline on loans and deposits
    • Mortgage closings of $215 million compared to $263 million a year ago; mortgage rate locks of $295 million compared to $305 million a year ago
    • Noninterest income was down $3.0 million on a linked quarter basis, primarily driven by the absence of a $2.4 million gain in the first quarter from terminating an office space lease
    • Noninterest expenses increased by $2.0 million compared to the first quarter on a GAAP basis and were flat on an operating basis
    • Efficiency ratio of 59.7%, or 57.1% on an operating basis
    • Net charge-offs of $11.6 million, or 26 basis points as a percent of average loans, down 2 basis points from the net charge-offs level experienced in the first quarter
    • Nonperforming assets of 0.43% of total assets, up four basis points compared to March 31, 2024
    • Quarterly common shareholder dividend of $0.23 per share declared during the quarter, unchanged year-over-year
    • We reached an agreement to sell FinTrust and recognized a $5.1 million loss related to the sale in the form of a goodwill impairment charge. The transaction is expected to close in the third quarter.

    Conference Call
    United will hold a conference call on Wednesday, July 24, 2024 at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10190532/fcfa86e478. 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  Second
    Quarter
    2024 -
    2023
    Change
    		 For the Six Months Ended June 30, YTD
    2024 -
    2023
    Change
      Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		   2024   2023  
    INCOME SUMMARY                  
    Interest revenue $346,965  $336,728  $338,698  $323,147  $295,775    $683,693  $575,262   
    Interest expense  138,265   137,579   135,245   120,591   95,489     275,844   163,506   
    Net interest revenue  208,700   199,149   203,453   202,556   200,286  4%  407,849   411,756  (1)%
    Provision for credit losses  12,235   12,899   14,626   30,268   22,753     25,134   44,536   
    Noninterest income  36,556   39,587   (23,090)  31,977   36,387  —   76,143   66,596  14 
    Total revenue  233,021   225,837   165,737   204,265   213,920  9   458,858   433,816  6 
    Noninterest expenses  147,044   145,002   154,587   144,474   132,407  11   292,046   272,212  7 
    Income before income tax expense  85,977   80,835   11,150   59,791   81,513  5   166,812   161,604  3 
    Income tax expense  19,362   18,204   (2,940)  11,925   18,225  6   37,566   36,016  4 
    Net income  66,615   62,631   14,090   47,866   63,288  5   129,246   125,588  3 
    Non-operating items  6,493   2,187   67,450   9,168   3,645     8,680   12,276   
    Income tax benefit of non-operating items  (1,462)  (493)  (16,714)  (2,000)  (820)    (1,955)  (2,775)  
    Net income - operating (1) $71,646  $64,325  $64,826  $55,034  $66,113  8  $135,971  $135,089  1 
    Pre-tax pre-provision income (5) $98,212  $93,734  $25,776  $90,059  $104,266  (6) $191,946  $206,140  (7)
    PERFORMANCE MEASURES                  
    Per common share:                  
    Diluted net income - GAAP $0.54  $0.51  $0.11  $0.39  $0.53  2  $1.05  $1.05  — 
    Diluted net income - operating (1)  0.58   0.52   0.53   0.45   0.55  5   1.10   1.13  (3)
    Cash dividends declared  0.23   0.23   0.23   0.23   0.23  —   0.46   0.46  — 
    Book value  27.18   26.83   26.52   25.87   25.98  5   27.18   25.98  5 
    Tangible book value (3)  19.13   18.71   18.39   17.70   17.83  7   19.13   17.83  7 
    Key performance ratios:                  
    Return on common equity - GAAP (2)(4)  7.53%  7.14%  1.44%  5.32%  7.47%    7.34%  7.41%  
    Return on common equity - operating (1)(2)(4)  8.12   7.34   7.27   6.14   7.82     7.73   7.98   
    Return on tangible common equity - operating (1)(2)(3)(4)  11.68   10.68   10.58   9.03   11.35     11.18   11.49   
    Return on assets - GAAP (4)  0.97   0.90   0.18   0.68   0.95     0.94   0.95   
    Return on assets - operating (1)(4)  1.04   0.93   0.92   0.79   1.00     0.99   1.03   
    Return on assets - pre-tax pre-provision - operating(1)(4)(5)  1.54   1.40   1.33   1.44   1.65     1.47   1.68   
    Net interest margin (fully taxable equivalent) (4)  3.37   3.20   3.19   3.24   3.37     3.28   3.49   
    Efficiency ratio - GAAP  59.70   60.47   66.33   61.32   55.71     60.08   56.46   
    Efficiency ratio - operating (1)  57.06   59.15   59.57   57.43   54.17     58.08   53.92   
    Equity to total assets  12.35   12.06   11.95   11.85   11.89     12.35   11.89   
    Tangible common equity to tangible assets (3)  8.78   8.49   8.36   8.18   8.21     8.78   8.21   
    ASSET QUALITY                  
    Nonperforming assets ("NPAs") $116,722  $107,230  $92,877  $90,883  $103,737  13  $116,722  $103,737  13 
    Allowance for credit losses - loans  213,022   210,934   208,071   201,557   190,705  12   213,022   190,705  12 
    Allowance for credit losses - total  224,740   224,119   224,128   219,624   212,277  6   224,740   212,277  6 
    Net charge-offs  11,614   12,908   10,122   26,638   8,399     24,522   15,483   
    Allowance for credit losses - loans to loans  1.17%  1.15%  1.14%  1.11%  1.10%    1.17%  1.10%  
    Allowance for credit losses - total to loans  1.23   1.22   1.22   1.21   1.22     1.23   1.22   
    Net charge-offs to average loans (4)  0.26   0.28   0.22   0.59   0.20     0.27   0.18   
    NPAs to total assets  0.43   0.39   0.34   0.34   0.40     0.43   0.40   
    AT PERIOD END ($ in millions)                  
    Loans $18,211  $18,375  $18,319  $18,203  $17,395  5  $18,211  $17,395  5 
    Investment securities  6,038   5,859   5,822   5,701   5,914  2   6,038   5,914  2 
    Total assets  27,057   27,365   27,297   26,869   26,120  4   27,057   26,120  4 
    Deposits  22,982   23,332   23,311   22,858   22,252  3   22,982   22,252  3 
    Shareholders’ equity  3,343   3,300   3,262   3,184   3,106  8   3,343   3,106  8 
    Common shares outstanding (thousands)  119,175   119,137   119,010   118,976   115,266  3   119,175   115,266  3 

    (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 Six Months Ended June 30,
      Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		  2024   2023 
                   
    Noninterest expense reconciliation              
    Noninterest expenses (GAAP) $147,044  $145,002  $154,587  $144,474  $132,407  $292,046  $272,212 
    Loss on FinTrust (goodwill impairment)  (5,100)  —   —   —   —   (5,100)  — 
    FDIC special assessment  764   (2,500)  (9,995)  —   —   (1,736)  — 
    Merger-related and other charges  (2,157)  (2,087)  (5,766)  (9,168)  (3,645)  (4,244)  (12,276)
    Noninterest expenses - operating $140,551  $140,415  $138,826  $135,306  $128,762  $280,966  $259,936 
                   
    Net income to operating income reconciliation              
    Net income (GAAP) $66,615  $62,631  $14,090  $47,866  $63,288  $129,246  $125,588 
    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  2,157   2,087   5,766   9,168   3,645   4,244   12,276 
    Income tax benefit of non-operating items  (1,462)  (493)  (16,714)  (2,000)  (820)  (1,955)  (2,775)
    Net income - operating $71,646  $64,325  $64,826  $55,034  $66,113  $135,971  $135,089 
                   
    Net income to pre-tax pre-provision income reconciliation              
    Net income (GAAP) $66,615  $62,631  $14,090  $47,866  $63,288  $129,246  $125,588 
    Income tax expense  19,362   18,204   (2,940)  11,925   18,225   37,566   36,016 
    Provision for credit losses  12,235   12,899   14,626   30,268   22,753   25,134   44,536 
    Pre-tax pre-provision income $98,212  $93,734  $25,776  $90,059  $104,266  $191,946  $206,140 
                   
    Diluted income per common share reconciliation              
    Diluted income per common share (GAAP) $0.54  $0.51  $0.11  $0.39  $0.53  $1.05  $1.05 
    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   —   —   0.02   — 
    Merger-related and other charges  0.01   0.01   0.04   0.06   0.02   0.02   0.08 
    Diluted income per common share - operating $0.58  $0.52  $0.53  $0.45  $0.55  $1.10  $1.13 
                   
    Book value per common share reconciliation              
    Book value per common share (GAAP) $27.18  $26.83  $26.52  $25.87  $25.98  $27.18  $25.98 
    Effect of goodwill and other intangibles  (8.05)  (8.12)  (8.13)  (8.17)  (8.15)  (8.05)  (8.15)
    Tangible book value per common share $19.13  $18.71  $18.39  $17.70  $17.83  $19.13  $17.83 
                   
    Return on tangible common equity reconciliation              
    Return on common equity (GAAP)  7.53%  7.14%  1.44%  5.32%  7.47%  7.34%  7.41%
    Bond portfolio restructuring loss  —   —   4.47   —   —   —   — 
    Gain on lease termination  —   (0.22)  —   —   —   (0.11)  — 
    Loss on FinTrust (goodwill impairment)  0.46   —   —   —   —   0.23   — 
    FDIC special assessment  (0.07)  0.23   0.86   —   —   0.08   — 
    Merger-related and other charges  0.20   0.19   0.50   0.82   0.35   0.19   0.57 
    Return on common equity - operating  8.12   7.34   7.27   6.14   7.82   7.73   7.98 
    Effect of goodwill and other intangibles  3.56   3.34   3.31   2.89   3.53   3.45   3.51 
    Return on tangible common equity - operating  11.68%  10.68%  10.58%  9.03%  11.35%  11.18%  11.49%
                   
    Return on assets reconciliation              
    Return on assets (GAAP)  0.97%  0.90%  0.18%  0.68%  0.95%  0.94%  0.95%
    Bond portfolio restructuring loss  —   —   0.57   —   —   —   — 
    Gain on lease termination  —   (0.03)  —   —   —   (0.01)  — 
    Loss on FinTrust (goodwill impairment)  0.06   —   —   —   —   0.03   — 
    FDIC special assessment  (0.01)  0.03   0.11   —   —   0.01   — 
    Merger-related and other charges  0.02   0.03   0.06   0.11   0.05   0.02   0.08 
    Return on assets - operating  1.04%  0.93%  0.92%  0.79%  1.00%  0.99%  1.03%
                   
    Return on assets to return on assets- pre-tax pre-provision reconciliation              
    Return on assets (GAAP)  0.97%  0.90%  0.18%  0.68%  0.95%  0.94%  0.95%
    Income tax (benefit) expense  0.29   0.27   (0.04)  0.18   0.29   0.28   0.28 
    Provision for credit losses  0.18   0.19   0.21   0.45   0.35   0.19   0.35 
    Bond portfolio restructuring loss  —   —   0.75   —   —   —   — 
    Gain on lease termination  —   (0.04)  —   —   —   (0.02)  — 
    Loss on FinTrust (goodwill impairment)  0.08   —   —   —   —   0.04   — 
    FDIC special assessment  (0.01)  0.04   0.15   —   —   0.01   — 
    Merger-related and other charges  0.03   0.04   0.08   0.13   0.06   0.03   0.10 
    Return on assets - pre-tax pre-provision - operating  1.54%  1.40%  1.33%  1.44%  1.65%  1.47%  1.68%
                   
    Efficiency ratio reconciliation              
    Efficiency ratio (GAAP)  59.70%  60.47%  66.33%  61.32%  55.71%  60.08%  56.46%
    Gain on lease termination  —   0.60   —   —   —   0.29   — 
    Loss on FinTrust (goodwill impairment)  (2.07)  —   —   —   —   (1.05)  — 
    FDIC special assessment  0.31   (1.05)  (4.29)  —   —   (0.36)  — 
    Merger-related and other charges  (0.88)  (0.87)  (2.47)  (3.89)  (1.54)  (0.88)  (2.54)
    Efficiency ratio - operating  57.06%  59.15%  59.57%  57.43%  54.17%  58.08%  53.92%
                   
    Tangible common equity to tangible assets reconciliation              
    Equity to total assets (GAAP)  12.35%  12.06%  11.95%  11.85%  11.89%  12.35%  11.89%
    Effect of goodwill and other intangibles  (3.24)  (3.25)  (3.27)  (3.33)  (3.31)  (3.24)  (3.31)
    Effect of preferred equity  (0.33)  (0.32)  (0.32)  (0.34)  (0.37)  (0.33)  (0.37)
    Tangible common equity to tangible assets  8.78%  8.49%  8.36%  8.18%  8.21%  8.78%  8.21%


    UNITED COMMUNITY BANKS, INC.
    Financial Highlights
    Loan Portfolio Composition at Period-End
      2024  2023 Linked
    Quarter
    Change
    		 Year over
    Year
    Change
    (in millions)Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		  
    LOANS BY CATEGORY             
    Owner occupied commercial RE$3,297  $3,310  $3,264  $3,279  $3,111  $(13) $186 
    Income producing commercial RE 4,058   4,206   4,264   4,130   3,670   (148)  388 
    Commercial & industrial 2,299   2,405   2,411   2,504   2,550   (106)  (251)
    Commercial construction 2,014   1,936   1,860   1,850   1,739   78   275 
    Equipment financing 1,581   1,544   1,541   1,534   1,510   37   71 
    Total commercial 13,249   13,401   13,340   13,297   12,580   (152)  669 
    Residential mortgage 3,266   3,240   3,199   3,043   2,905   26   361 
    Home equity 985   969   959   941   927   16   58 
    Residential construction 211   257   302   399   463   (46)  (252)
    Manufactured housing 321   328   336   343   340   (7)  (19)
    Consumer 183   180   181   180   180   3   3 
    Fair value hedge basis adjustment (4)  —   2   —   —   (4)  (4)
    Total loans$18,211  $18,375  $18,319  $18,203  $17,395  $(164) $816 
                  
    LOANS BY MARKET             
    Georgia$4,411  $4,356  $4,357  $4,321  $4,281  $55  $130 
    South Carolina 2,779   2,804   2,780   2,801   2,750   (25)  29 
    North Carolina 2,591   2,566   2,492   2,445   2,355   25   236 
    Tennessee 2,144   2,209   2,244   2,314   2,387   (65)  (243)
    Florida 2,407   2,443   2,442   2,318   1,708   (36)  699 
    Alabama 1,021   1,068   1,082   1,070   1,062   (47)  (41)
    Commercial Banking Solutions 2,858   2,929   2,922   2,934   2,852   (71)  6 
    Total loans$18,211  $18,375  $18,319  $18,203  $17,395  $(164) $816 


    UNITED COMMUNITY BANKS, INC. 
    Financial Highlights 
    Credit Quality 
    (in thousands) 
       2024  2023  
      Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 
    NONACCRUAL LOANS       
    Owner occupied RE $4,820  $2,310  $3,094  
    Income producing RE  34,285   29,186   30,128  
    Commercial & industrial  17,335   20,134   13,467  
    Commercial construction  6,854   1,862   1,878  
    Equipment financing  8,341   8,829   8,505  
    Total commercial  71,635   62,321   57,072  
    Residential mortgage  18,473   16,569   13,944  
    Home equity  3,779   4,984   3,772  
    Residential construction  163   1,244   944  
    Manufactured housing  20,356   19,797   15,861  
    Consumer  72   54   94  
    Total nonaccrual loans  114,478   104,969   91,687  
    OREO and repossessed assets  2,244   2,261   1,190  
    Total NPAs $116,722  $107,230  $92,877  


       2024   2023 
      Second Quarter First Quarter Fourth 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 $163  0.02% $202  0.02% $35  —%
    Income producing RE  2,968  0.29   205  0.02   (562) (0.05)
    Commercial & industrial  1,281  0.22   3,906  0.65   547  0.09 
    Commercial construction  (48) (0.01)  20  —   33  0.01 
    Equipment financing  5,502  1.42   6,362  1.66   7,926  2.05 
    Total commercial  9,866  0.30   10,695  0.32   7,979  0.24 
    Residential mortgage  (107) (0.01)  (16) —   12  — 
    Home equity  (27) (0.01)  (54) (0.02)  (68) (0.03)
    Residential construction  26  0.04   119  0.17   (13) (0.01)
    Manufactured housing  1,150  1.43   1,569  1.90   1,444  1.69 
    Consumer  706  1.57   595  1.33   768  1.70 
    Total $11,614  0.26  $12,908  0.28  $10,122  0.22 
                 
    (1) Annualized.            


         
    UNITED COMMUNITY BANKS, INC.
    Consolidated Balance Sheets (Unaudited)
    		    
         
    (in thousands, except share and per share data) June 30,
    2024    		 December 31,
    2023
    ASSETS    
    Cash and due from banks $198,234  $200,781 
    Interest-bearing deposits in banks  364,629   803,094 
    Cash and cash equivalents  562,863   1,003,875 
    Debt securities available-for-sale  3,604,769   3,331,084 
    Debt securities held-to-maturity (fair value $2,004,427 and $2,095,620, respectively)  2,432,941   2,490,848 
    Loans held for sale  49,315   33,008 
    Loans and leases held for investment  18,211,193   18,318,755 
    Allowance for credit losses - loans and leases  (213,022)  (208,071)
    Loans and leases, net  17,998,171   18,110,684 
    Premises and equipment, net  395,202   378,421 
    Bank owned life insurance  344,162   345,371 
    Goodwill and other intangible assets, net  978,645   990,087 
    Other assets  691,133   613,873 
    Total assets $27,057,201  $27,297,251 
    LIABILITIES AND SHAREHOLDERS' EQUITY    
    Liabilities:    
    Deposits:    
    Noninterest-bearing demand $6,291,124  $6,534,307 
    NOW and interest-bearing demand  5,794,085   6,155,193 
    Money market  6,077,129   5,600,587 
    Savings  1,144,696   1,207,807 
    Time  3,510,917   3,649,498 
    Brokered  164,171   163,219 
    Total deposits  22,982,122   23,310,611 
    Long-term debt  324,887   324,823 
    Accrued expenses and other liabilities  407,559   400,292 
    Total liabilities  23,714,568   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,
    119,174,803 and 119,010,319 shares issued and outstanding, respectively    		  119,175   119,010 
    Common stock issuable; 568,985 and 620,108 shares, respectively  12,145   13,110 
    Capital surplus  2,705,345   2,699,112 
    Retained earnings  652,239   581,219 
    Accumulated other comprehensive loss  (234,537)  (239,192)
    Total shareholders' equity  3,342,633   3,261,525 
    Total liabilities and shareholders' equity $27,057,201  $27,297,251 


     
    UNITED COMMUNITY BANKS, INC.
    Consolidated Statements of Income (Unaudited)
     
      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except per share data)  2024  2023  2024  2023 
    Interest revenue:        
    Loans, including fees $291,595 $250,484 $575,578 $486,915 
    Investment securities, including tax exempt of $1,699, $1,731, $3,420 and $3,841, respectively  50,063  41,060  96,499  81,046 
    Deposits in banks and short-term investments  5,307  4,231  11,616  7,301 
    Total interest revenue  346,965  295,775  683,693  575,262 
             
    Interest expense:        
    Deposits:        
    NOW and interest-bearing demand  43,910  27,597  90,121  45,196 
    Money market  53,531  33,480  104,009  58,546 
    Savings  687  702  1,393  1,240 
    Time  36,334  27,438  72,723  42,096 
    Deposits  134,462  89,217  268,246  147,078 
    Short-term borrowings  60  1,849  60  2,997 
    Federal Home Loan Bank advances  —  649  —  5,761 
    Long-term debt  3,743  3,774  7,538  7,670 
    Total interest expense  138,265  95,489  275,844  163,506 
    Net interest revenue  208,700  200,286  407,849  411,756 
    Provision for credit losses  12,235  22,753  25,134  44,536 
    Net interest revenue after provision for credit losses  196,465  177,533  382,715  367,220 
             
    Noninterest income:        
    Service charges and fees  10,620  9,777  19,884  18,476 
    Mortgage loan gains and other related fees  6,799  6,584  14,310  11,105 
    Wealth management fees  6,386  5,600  12,699  11,324 
    Gains from sales of other loans  1,296  2,305  2,833  4,221 
    Lending and loan servicing fees  3,328  2,978  7,538  6,994 
    Securities losses, net  —  —  —  (1,644)
    Other  8,127  9,143  18,879  16,120 
    Total noninterest income  36,556  36,387  76,143  66,596 
    Total revenue  233,021  213,920  458,858  433,816 
             
    Noninterest expenses:        
    Salaries and employee benefits  85,818  76,250  170,803  154,948 
    Communications and equipment  11,988  10,744  23,908  20,752 
    Occupancy  11,056  10,194  22,155  20,083 
    Advertising and public relations  2,459  2,314  4,360  4,663 
    Postage, printing and supplies  2,251  2,382  4,899  4,919 
    Professional fees  6,044  6,592  12,032  12,664 
    Lending and loan servicing expense  2,014  2,530  3,841  4,849 
    Outside services - electronic banking  2,812  2,660  5,730  6,085 
    FDIC assessments and other regulatory charges  4,467  4,142  12,033  8,143 
    Amortization of intangibles  3,794  3,421  7,681  6,949 
    Merger-related and other charges  2,157  3,645  4,244  12,276 
    Other  12,184  7,533  20,360  15,881 
    Total noninterest expenses  147,044  132,407  292,046  272,212 
    Income before income taxes  85,977  81,513  166,812  161,604 
    Income tax expense  19,362  18,225  37,566  36,016 
    Net income  66,615  63,288  129,246  125,588 
    Preferred stock dividends  1,573  1,719  3,146  3,438 
    Earnings allocated to participating securities  368  342  713  680 
    Net income available to common shareholders $64,674 $61,227 $125,387 $121,470 
             
    Net income per common share:        
    Basic $0.54 $0.53 $1.05 $1.05 
    Diluted  0.54  0.53  1.05  1.05 
    Weighted average common shares outstanding:        
    Basic  119,726  115,774  119,694  115,614 
    Diluted  119,785  115,869  119,763  115,795 


     
    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Three Months Ended June 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) $18,213,384  $291,378  6.43% $17,166,129  $250,472  5.85%
    Taxable securities (3)  5,952,414   48,364  3.25   5,956,193   39,329  2.64 
    Tax-exempt securities (FTE) (1)(3)  363,393   2,273  2.50   369,364   2,323  2.52 
    Federal funds sold and other interest-earning assets  499,565   6,011  4.84   461,022   4,658  4.05 
    Total interest-earning assets (FTE)  25,028,756   348,026  5.59   23,952,708   296,782  4.97 
                 
    Noninterest-earning assets:            
    Allowance for credit losses  (215,104)      (181,769)    
    Cash and due from banks  204,792       251,691     
    Premises and equipment  392,325       345,771     
    Other assets (3)  1,605,558       1,500,827     
    Total assets $27,016,327      $25,869,228     
                 
    Liabilities and Shareholders' Equity:            
    Interest-bearing liabilities:            
    Interest-bearing deposits:            
    NOW and interest-bearing demand $5,866,038   43,910  3.01  $4,879,591   27,597  2.27 
    Money market  6,068,530   53,531  3.55   5,197,789   33,480  2.58 
    Savings  1,160,708   687  0.24   1,306,394   702  0.22 
    Time  3,544,327   35,695  4.05   2,976,482   22,471  3.03 
    Brokered time deposits  50,323   639  5.11   423,536   4,967  4.70 
    Total interest-bearing deposits  16,689,926   134,462  3.24   14,783,792   89,217  2.42 
    Federal funds purchased and other borrowings  4,093   60  5.90   145,233   1,849  5.11 
    Federal Home Loan Bank advances  —   —  —   50,989   649  5.11 
    Long-term debt  324,870   3,743  4.63   324,740   3,774  4.66 
    Total borrowed funds  328,963   3,803  4.65   520,962   6,272  4.83 
    Total interest-bearing liabilities  17,018,889   138,265  3.27   15,304,754   95,489  2.50 
                 
    Noninterest-bearing liabilities:            
    Noninterest-bearing deposits  6,283,487       7,072,760     
    Other liabilities  400,974       385,324     
    Total liabilities  23,703,350       22,762,838     
    Shareholders' equity  3,312,977       3,106,390     
    Total liabilities and shareholders' equity $27,016,327      $25,869,228     
                 
    Net interest revenue (FTE)   $209,761      $201,293   
    Net interest-rate spread (FTE)     2.32%     2.47%
    Net interest margin (FTE) (4)     3.37%     3.37%


    (1)Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 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 $344 million in 2024 and $389 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 Six Months Ended June 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) $18,256,562  $575,338  6.34% $17,032,493  $487,002  5.77%
    Taxable securities (3)  5,890,408   93,079  3.16   6,007,471   77,205  2.57 
    Tax-exempt securities (FTE) (1)(3)  364,873   4,584  2.51   395,827   5,157  2.61 
    Federal funds sold and other interest-earning assets  587,080   12,816  4.39   466,642   8,010  3.46 
    Total interest-earning assets (FTE)  25,098,923   685,817  5.49   23,902,433   577,374  4.87 
                 
    Non-interest-earning assets:            
    Allowance for loan losses  (214,050)      (174,716)    
    Cash and due from banks  212,998       261,397     
    Premises and equipment  389,173       337,499     
    Other assets (3)  1,611,928       1,492,926     
    Total assets $27,098,972      $25,819,539     
                 
    Liabilities and Shareholders' Equity:            
    Interest-bearing liabilities:            
    Interest-bearing deposits:            
    NOW and interest-bearing demand $5,972,065   90,121  3.03  $4,690,798   45,196  1.94 
    Money market  5,966,374   104,009  3.51   5,210,457   58,546  2.27 
    Savings  1,176,768   1,393  0.24   1,361,357   1,240  0.18 
    Time  3,570,407   71,639  4.03   2,664,269   34,784  2.63 
    Brokered time deposits  50,333   1,084  4.33   316,470   7,312  4.66 
    Total interest-bearing deposits  16,735,947   268,246  3.22   14,243,351   147,078  2.08 
    Federal funds purchased and other borrowings  2,054   60  5.87   126,697   2,997  4.77 
    Federal Home Loan Bank advances  2   —  —   250,912   5,761  4.63 
    Long-term debt  324,854   7,538  4.67   324,721   7,670  4.76 
    Total borrowed funds  326,910   7,598  4.67   702,330   16,428  4.72 
    Total interest-bearing liabilities  17,062,857   275,844  3.25   14,945,681   163,506  2.21 
                 
    Noninterest-bearing liabilities:            
    Noninterest-bearing deposits  6,340,783       7,383,575     
    Other liabilities  395,713       371,422     
    Total liabilities  23,799,353       22,700,678     
    Shareholders' equity  3,299,619       3,118,861     
    Total liabilities and shareholders' equity $27,098,972      $25,819,539     
                 
    Net interest revenue (FTE)   $409,973      $413,868   
    Net interest-rate spread (FTE)     2.24%     2.66%
    Net interest margin (FTE) (4)     3.28%     3.49%
                 


    (1)Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 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 $333 million in 2024 and $404 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. (NASDAQ: UCBI) 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 June 30, 2024, United Community Banks, Inc. had $27.1 billion in assets, 203 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 best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United Community 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 www.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 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


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