United Community Banks, Inc. Reports First Quarter Earnings
Growth, Margin Expansion, and Disciplined Expense Control Drive Results
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
First Fourth Third Second First 2025-2024
Quarter Quarter Quarter Quarter Quarter Change
------------ ------------ ------------ ------------ ------------ -----------
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 Fourth Third Second First
Quarter Quarter Quarter Quarter 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
------ -----------------------------------
Year
Linked over
First Fourth Third Second First Quarter Year
(in millions) Quarter Quarter Quarter Quarter Quarter Change Change
------- ------- ------- -------- ------- --------- --------
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 Fourth Third
Quarter Quarter 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
------------------ -------------------- --------------------
Net
Charge- Net Net
Offs to Charge- Charge-
Net Average Net Offs to Net Offs to
Charge- Loans Charge- Average Charge- Average
(in thousands) Offs (1) Offs Loans (1) Offs 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 March 31, December 31,
share data) 2025 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 Average Average Average Average
equivalent (FTE)) Balance Interest Rate Balance Interest 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
(END) Dow Jones Newswires
April 22, 2025 07:30 ET (11:30 GMT)