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

Written by Customer Service on January 22, 2025. Posted in Earnings Releases And Operating Results.

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			Fourth Quarter 2024– 2023 Change			2024			2023		YTD 2024– 2023 Change
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 Information (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		Linked Quarter Change			Year over Year Change
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

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

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