United Community Banks, Inc. (UCBI) Q1 2025 Earnings Conference Call April 22, 2025 09:00 AM ET Company Participants Operator - Pre-call Disclosure / Conference IntroductionModerator - Conference Call ModeratorLynn Harten - Company Executive (Presenter)Rob - Credit/Portfolio OfficerRich - Executive RepresentativeJefferson - Chief Financial Officer (CFO) Conference Call Participants Gary Tenner - Analyst, D.A. DavidsonRussell Gunther - Analyst, StevensMultiple Analysts (Steven Scouten of Piper Sandler; Micha ...

Financial Performance - Diluted earnings per share were $0.58 (GAAP) and $0.59 (operating), with a return on assets of 1.02% (GAAP) and 1.01% (operating)[13]. - Earnings per share (EPS) for the quarter were reported at $1.25, a 5% increase year-over-year[84]. - The company achieved a net charge-off (NCO) rate of 0.45%, a decrease from 0.60% in the previous quarter[84]. - 1Q25 net charge-offs were $9.6 million, or 0.21% of loans annualized, with nonperforming assets at 0.51% of total loans, down 13 bps from 4Q24[59]. - Diluted earnings per share for 1Q25 were $0.58, compared to $0.61 in 4Q24[81]. - Return on assets - GAAP for 1Q25 was 1.02%, slightly down from 1.06% in 4Q24[83]. Asset and Loan Growth - Total assets reached $27.9 billion, with total deposits at $23.8 billion and total loans at $18.4 billion[11]. - Customer deposits increased by $309 million, or 5.4% annualized, from 4Q24, with noninterest-bearing deposits growing by $46 million, or 3.0% annualized[23]. - The loan portfolio grew by 5.6% annualized, primarily driven by commercial and industrial loans, equipment finance, and home equity lines of credit[33]. - Approximately $8.3 billion, or 45%, of total loans are variable rate and reprice or mature within one year[44]. - Time deposits maturing in 2Q25 represent $1.3 billion, or 39%, with an average rate of 3.78%[29]. Interest and Revenue - The net interest margin improved by 16 basis points year-over-year to 3.36%, with a 6% year-over-year increase in net interest revenue[13]. - Net interest revenue increased by $1.7 million, or 3.2% annualized, from 4Q24, with a core net interest margin of 3.31%, up 12 bps[44]. - The company reported a year-over-year increase in net interest margin (NIM) by 15 basis points, reaching 3.25%[84]. Operational Efficiency - The efficiency ratio improved to 56.2% (operating) from 56.7% (GAAP), indicating enhanced operational efficiency[15]. - The operating efficiency ratio improved to 56.2%, down 293 basis points year-over-year[54]. - Efficiency ratio - GAAP improved to 56.74% in 1Q25 from 56.05% in 4Q24[83]. - Total expenses for 1Q25 were $141,099 thousand, a decrease from $143,056 thousand in 4Q24[81]. Capital and Equity - The company maintains a strong capital position with a Common Equity Tier 1 ratio of 13.3%[36]. - The tangible book value per share increased to $20.58, reflecting a 10% year-over-year improvement[40]. - 1Q25 regulatory risk-based capital ratios remained strong, with a leverage ratio of 10.15%, up 19 bps from 4Q24[41]. - Tangible common equity to tangible assets increased to 9.18% in 1Q25 from 8.97% in 4Q24[83]. - The tangible common equity (TCE) ratio improved to 9.5%, up from 9.0% last year[84]. Strategic Initiatives - The acquisition of ANB Holdings, Inc. is expected to close on May 1, 2025, adding approximately $440 million in assets and $375 million in deposits[12]. - The company expects the ANB acquisition to close on May 1, 2025, with an anticipated tangible book value decrease of approximately $0.13[41]. - The company plans to expand its mortgage loan office (MLO) network by 25% in the next fiscal year[84]. - New product launches are expected to contribute an additional $200 million in revenue over the next two quarters[84]. - The company is exploring strategic acquisitions in the fintech space to enhance its service offerings[84]. Market and Growth Projections - The company is focused on high-growth Southeast MSAs, with Jacksonville, FL projected to grow by 8.26% from 2025 to 2030[79]. - The projected population growth for Raleigh, NC is 7.36% from 2025 to 2030[79]. - Future guidance indicates a projected revenue growth of 8% for the upcoming fiscal year[84]. Noninterest Income - Noninterest income decreased by $4.8 million from 4Q24, primarily due to lower service charges and mortgage fees[49]. - Noninterest income for 1Q25 was $35,656 thousand, compared to $40,522 thousand in 4Q24[81].

Financial Performance - As of December 31, 2024, United Community Banks, Inc. had consolidated total assets of $27.7 billion[23] - Consolidated loans amounted to $18.2 billion, representing 66% of total consolidated assets[30] - The bank paid dividends to the Holding Company totaling $153 million in 2024, $198 million in 2023, and $133 million in 2022[78] - The Holding Company declared quarterly cash dividends on its common stock amounting to $0.94 per share in 2024, $0.92 in 2023, and $0.86 in 2022[78] - The bank's revenue is primarily derived from interest on loans and fees, with customer deposits being a principal source of funds[135] Regulatory Environment - The bank's primary federal regulator changed from the FDIC to the Federal Reserve effective June 2024[28] - The Holding Company must maintain a CET1 capital conservation buffer of 2.5% to avoid restrictions on capital distributions, including dividends[80] - The Holding Company is subject to regulatory requirements that restrict dividend payments if it cannot cover debts or if total assets fall below total liabilities[79] - The Bank is subject to examination and reporting requirements from multiple regulatory bodies, including the Federal Reserve and the SCBFI[75] - The bank is subject to significant regulatory burdens that may restrict activities and increase compliance costs[176] Capital and Liquidity - The Bank is classified as "well-capitalized" under regulatory capital requirements as of December 31, 2024, with total capital at least 10%[94] - Minimum capital requirements under Basel III include CET1 capital at 4.5%, Tier 1 capital at 6.0%, and total capital at 8.0%[88] - The Bank must maintain a 2.5% capital conservation buffer on top of its minimum risk-based capital requirements to avoid restrictions on capital distributions[90] - The company anticipates continued reliance on deposits, loan repayments, and cash flows from investment securities for liquidity[184] - A significant portion of deposits exceeding FDIC insurance limits may increase liquidity risk during financial distress[187] Risk Management - The effectiveness of the company's risk management framework is critical, as inadequacies could lead to unexpected losses and regulatory scrutiny[153] - The company's ability to accurately forecast credit losses and market conditions relies on analytical models, which may not always be reliable under stress[156] - The company faces credit risk due to rising interest rates, inflation, and a weakening economy, which may affect borrowers' ability to repay loans[170] - The allowance for credit losses (ACL) reflects the company's assessment of expected losses over the life of the loan portfolio, which may require adjustments based on economic conditions[174] - The company is subject to federal laws aimed at combating money laundering, which could lead to significant penalties for non-compliance[128] Market and Economic Conditions - Inflationary pressures have been significant, impacting purchasing power and potentially leading to higher interest rates, which pose risks to the company's financial condition[158] - Economic volatility can increase realized credit losses and decrease demand for products and services, particularly in the regional markets served by the company[159] - The Federal Reserve increased interest rates significantly in 2022 and much of 2023, impacting the company's business and clients[161] - The yield curve was inverted during much of 2022 and 2023, which typically decreases net interest margin and adversely impacts lending businesses[167] - Political dysfunction and volatility within the federal government could lead to abrupt shifts in federal policy, adversely affecting the company's business[179] Competition and Growth Strategy - The bank faces intense competition from various financial service providers, including non-traditional and disruptive service providers[141] - The bank's ability to expand into new markets and acquire suitable sites is critical for its growth strategy[140] - The bank's strategy includes pursuing acquisitions and organic growth to enhance its banking operations[138] - Competition for top talent is increasing, with higher costs associated with hiring and retaining experienced professionals impacting noninterest expenses[155] - The company must continuously invest in innovation to keep pace with competitors and adapt to changing market demands, particularly in the FinTech environment[145] Cybersecurity - The Chief Information Security Officer (CISO) oversees the cybersecurity program, reporting to the Risk Committee quarterly on key metrics and security efforts[222] - The company has implemented a layered cybersecurity risk management program based on recognized best practices and standards[213] - Cybersecurity incidents are monitored by the information security team, with protocols in place for reporting and responding to threats[216] - The company has not experienced any cybersecurity incidents that materially affected its business strategy or financial condition to date[219] - The company is subject to regulatory requirements for cybersecurity incident notifications, requiring reporting within 36 hours of discovery[210] Acquisitions and Organizational Structure - An agreement was announced to acquire ANB, which has total assets of $423 million, total loans of $312 million, and total deposits of $360 million[28] - The bank's organizational structure includes local leaders for each market, enhancing customer service and expertise[28] - The bank's financial subsidiaries must not exceed 45% of the bank's consolidated total assets or $50 billion[119] - The company has provisions in its articles and bylaws that could delay or prevent an attempted acquisition, including requiring 75% approval for business combinations[205] - If the company raises capital through equity financing, existing shareholders may experience dilution of ownership[206]

2 United Community Banks, Inc. UCBI Banking Offices 190 branches, 9 LPOs, and 3 MLOs across six Southeast states; Top 10 deposit market share in GA and SC 4Q24 Investor Presentation January 22, 2025 © 2025 United Community Bank | ucbi.com Disclosures CAUTIONARY STATEMENT This Investor Presentation 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 st ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________ to ___________ Commission file number 001-35095 UNITED COMMUNITY BANKS, INC. (Exact name of registrant as specified in its charter) Georgia 58-1807304 (S ...

| --- | --- | --- | --- | --- | |-------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | 3Q24 Investor Presentation October 23, 2024 | | | | | | Member FDIC. © 2024 United Community Bank \| ucbi.com | | | | | Disclosures CAUTIONARY STATEMENT This Investor Presentation 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. I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________ to ___________ Commission file number 001-35095 200 East Camperdown Way Greenville, South Carolina 29601 UNITED COMMUNITY BANKS, INC. (Exact name of registran ...

United Community Banks, Inc. (UCBI) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, UCBI's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term movin ...

About United Community Banks, Inc. "We are excited to announce our partnership with NYSE," said United CEO, Lynn Harton. "In joining the world's largest stock exchange, we believe NYSE will provide greater visibility for our company and shareholders. We look forward to celebrating this occasion and milestone for United by ringing The Opening Bell with our Board of Directors later in August." For more information: GREENVILLE, S.C., July 26, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI; ...

Financial Data and Key Metrics Changes - The company's earnings per share for Q2 was $0.58, up 5% year-over-year and 11.5% quarter-over-quarter [16] - The return on assets (ROA) on an operating basis reached 1.04% for the quarter [16] - The net interest margin expanded by 17 basis points due to disciplined deposit pricing and ongoing loan repricing [16][19] - Operating expenses were $140.6 million, a slight increase of $200,000 from Q1, influenced by higher health insurance costs but offset by lower other expenses [7][91] Business Line Data and Key Metrics Changes - The loan portfolio shrank by $164 million, attributed to cautious new loan issuance and lighter demand from customers [18] - Wealth management revenue was $6.4 million in Q2, showing a slight increase from Q1 [101] - FinTrust accounted for 44% of assets under administration (AUA) but only one-third of wealth management revenue, contributing about $2 million in fees per quarter [20][102] Market Data and Key Metrics Changes - Total deposit balances decreased in Q2, primarily due to a strategic decision to lower public funds pricing [17] - The cost of interest-bearing deposits increased by only 3 basis points this quarter compared to 8 basis points last quarter [95] - The loan-to-deposit ratio stood at 80%, indicating a strong liquidity position with essentially no wholesale borrowings [95] Company Strategy and Development Direction - The company aims to develop a bank-centric model to deepen client relationships and minimize internal competition [9] - A decision was made to sell FinTrust, which is expected to be capital accretive upon closing, with no impact on ongoing net income [9][102] - The company is focusing on building a more integrated wealth strategy and is optimistic about growth opportunities in 2025 [33][55] Management's Comments on Operating Environment and Future Outlook - Management noted that high interest rates and credit tightening have dampened confidence but expect improvement in loan growth in Q3 and Q4 [11] - The company is cautiously optimistic about loan growth, with expectations for a low single-digit overall growth rate in expenses [31][52] - Management expressed confidence in the strength of their balance sheet and the potential for growth despite current market challenges [98][94] Other Important Information - Non-performing assets (NPAs) increased slightly from 58 basis points to 64 [4] - The allowance for credit losses increased slightly, with $12.2 million set aside to cover $11.6 million in net charge-offs [21] - The company is actively managing existing relationships and expects loan growth to improve for the remainder of the year [94] Q&A Session Summary Question: What are the expectations for loan growth given the cautious stance on new originations? - Management indicated that while there is a cautious approach, they expect loan growth to improve through the balance of the year, particularly in owner-occupied commercial real estate [107][108] Question: Can you provide insights on the net interest margin and loan yield outlook? - The company expects net interest margin to remain flat in the third quarter, with a potential increase in loan yields of 6 to 7 basis points per quarter [13][57] Question: What is the company's approach to M&A in the current environment? - Management stated they are in an open but conservative posture regarding M&A, focusing on franchises that can add value without regulatory concerns [55][114] Question: How is the company managing credit quality and charge-off expectations? - Management expects charge-offs to continue to decrease, particularly in the Navitas segment, with a stable outlook for the bank's overall charge-offs [64][89]