United munity Banks(UCBI)

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Should You Buy United Community Banks (UCBI) After Golden Cross?
ZACKS· 2024-08-01 14:55
Group 1 - United Community Banks, Inc. (UCBI) has reached a key level of support, indicating potential for a bullish breakout [1] - A "golden cross" has occurred, with UCBI's 50-day simple moving average crossing above its 200-day simple moving average, which is a positive technical indicator [1] - UCBI has experienced a 24% rally over the past four weeks, and currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further gains [1] Group 2 - The positive earnings outlook for UCBI is supported by four upward revisions in earnings estimates over the past 60 days, with no downward revisions [1] - The Zacks Consensus Estimate for UCBI has also increased, reinforcing the bullish sentiment around the company [1][2]
United Community Banks, Inc. Announces Transfer of Listing of Common Stock and Depositary Shares to NYSE
Newsfilter· 2024-07-26 11:30
Core Points - United Community Banks, Inc. will transfer its stock listing from Nasdaq to the New York Stock Exchange (NYSE), effective August 6, 2024, with new ticker symbols "UCB" for common stock and "UCB PRI" for depositary shares [2][3] - The CEO of United expressed excitement about the partnership with NYSE, highlighting the expected increase in visibility for the company and its shareholders [2] - As of June 30, 2024, United Community Banks, Inc. reported $27.1 billion in assets and operates 203 offices across several states, including Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee [3] Company Recognition - United Community has been recognized as a top 100 U.S. financial institution and has won J.D. Power's award for best customer satisfaction among consumer banks in the Southeast for ten consecutive years [3] - The company has also been named one of the "Best Banks to Work For" by American Banker for seven consecutive years and received multiple awards in the Greenwich Excellence and Best Brands Awards [3] - Forbes consistently lists United Community as one of the World's Best Banks and one of America's Best Banks [3]
United munity Banks(UCBI) - 2024 Q2 - Earnings Call Transcript
2024-07-24 19:50
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]
United Community Banks (UCBI) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2024-07-24 14:35
Efficiency Ratio - Operating: 57.1% compared to the 59.8% average estimate based on three analysts. Net charge-offs to average loans: 0.3% versus the three-analyst average estimate of 0.3%. Net Interest Margin: 3.4% versus 3.2% estimated by three analysts on average. Average balance - Total interest-earning assets: $25.03 billion compared to the $25.28 billion average estimate based on three analysts. Total nonperforming assets: $116.72 million versus $108.90 million estimated by two analysts on average. To ...
United Community Banks (UCBI) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2024-07-24 13:56
United Community Banks (UCBI) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.73%. A quarter ago, it was expected that this bank holding company would post earnings of $0.50 per share when it actually produced earnings of $0.52, delivering a surprise of 4%. Over the last four quar ...
United munity Banks(UCBI) - 2024 Q2 - Quarterly Results
2024-07-24 12:23
Financial Performance - Total assets reached $27.1 billion in 2Q24[16] - The company reported a quarterly dividend of $0.23[48] - Diluted earnings per share (GAAP) for 2Q24 were $0.54, showing an increase from $0.51 in 1Q24[110][113] - Return on common equity (GAAP) was reported at 7.53% for 2Q24, reflecting a slight improvement from the previous quarter[110][117] - Return on assets (GAAP) improved to 0.97% in Q2 2024, up from 0.90% in Q1 2024[138] - Noninterest income for 2Q24 was $36.556 million, compared to $39.587 million in 1Q24[97] - GAAP noninterest income decreased by $3.0 million to $36.6 million, primarily due to the absence of a non-recurring gain in the prior quarter[168] Loan and Deposit Metrics - Total loans amounted to $18.2 billion in 2Q24[47] - Total deposits decreased to $23.0 billion in 2Q24, with an interest-bearing deposit rate of 2.35%[73] - Customer deposits totaled $23.2 billion, with business deposits at $8.7 billion and personal deposits at $11.2 billion[122][101] - The average account size for personal deposits was reported at $23.0 billion in total deposits[153] - The average loan size was $7.4 million, with the largest loan size reaching $26.9 million[93] - The median loan size was $6.6 million, with 30+ days past due loans at $0[93] - The company sold $145 million in loans in 2Q24, an increase of $19 million from $126 million sold in 1Q24[84] Credit Quality and Losses - Net charge-offs (NCOs) for 2Q24 were $11.6 million, or 0.26% of average loans annualized[40] - The allowance for credit losses (ACL) decreased by $1.5 million from 1Q24 due to lower commercial construction commitments[54] - The Allowance for Credit Losses (ACL) increased to 1.23% in 2Q24, up 1 basis point from 1Q24[68] - Nonperforming assets increased by $9.5 million during the quarter, representing 0.64% of total loans, up 6 basis points from 1Q24[175] - Higher risk loans improved to 2.8% from 1Q24, indicating a positive trend in loan quality[175] - The reserve for credit losses remained stable from 1Q24 due to less loan growth[176] Interest Income and Margins - The core net interest margin increased by 15 basis points to 3.28%[32] - The net interest revenue for 2Q24 was $208.7 million[31] - Net interest revenue increased by $9.6 million from Q1 2024, primarily driven by improved pricing discipline on loans and deposits[148] - The company reported a net interest margin of 3.37% in Q2 2024, consistent with Q1 2024[147] - Net interest margin (NIM) for 2Q24 was 3.37%, an increase from 3.20% in 1Q24, with purchased loan accretion contributing 9 basis points[166][167] Operational Efficiency - The operating efficiency ratio improved due to higher net interest income combined with relatively flat expenses[50] - The efficiency ratio improved to 59.7% (GAAP), down 77 basis points from 1Q24[110][117] - Efficiency ratio (operating) decreased to 57.06% in Q2 2024, compared to 59.15% in Q1 2024[138] Strategic Initiatives - The company plans to sell its RIA (FinTrust Capital Advisors), expected to close in 3Q24[6] - The company plans to expand its Private Banking and Trust services in key metropolitan statistical areas (MSAs) in North/South Carolina and Florida over the next 12-24 months[70] - The company is focused on high-growth MSAs in the Southeast, with projected population growth rates of up to 14.35% from 2023 to 2028 in certain areas[85] - The trust business was enhanced through the Seaside acquisition and the First National Bank of South Miami acquisition[178] Deposit Composition - The company’s noninterest-bearing deposits accounted for 27% of total deposits in 2Q24[71] - The company’s total interest-bearing deposits reached $16.7 billion in 2Q24, with an average rate of 3.24%[73] - The cost of deposits remained relatively flat at 2.35% in 2Q24, with a cumulative total deposit beta of 44%[102][101] - Average account size for deposits was $34,000, with a diverse industry and geographic distribution[179] Other Financial Metrics - The company has approximately $3.0 billion in Assets Under Administration (AUA) in its Wealth Management business, excluding FinTrust[70] - Mortgage locks showed a steady trend with a total of $305 million in loans sold in Q2 2024[127] - Mortgage rate locks totaled $295 million in 2Q24, compared to $305 million in 2Q23[168] - The company maintained substantial balance sheet liquidity with loans to core deposits ratio remaining stable[160] - The company’s bond portfolio restructuring loss was recorded at 0.57% in Q4 2023, impacting overall returns[138] - Noninterest expense increased by $2.0 million compared to 1Q24, attributed to unusual items in both quarters[173]
United Community Banks, Inc. Announces Date for Second Quarter 2024 Earnings Release and Conference Call
GlobeNewswire News Room· 2024-06-28 20:30
Group 1 - United Community Banks, Inc. will release its second quarter 2024 financial results on July 24, 2024, before the stock market opens [1] - A conference call to discuss the financial results, business highlights, and outlook will be held on the same day at 11:00 a.m. EST [1] - Participants can pre-register for the conference call or dial in, with a webcast available on the company's website [3] Group 2 - United Community Banks, Inc. is a top 100 U.S. financial institution with $27.3 billion in assets as of March 31, 2024 [4] - The company operates 205 offices across several states and has a national SBA lending franchise and equipment lending subsidiary [4] - United Community has received multiple awards for customer satisfaction and was recognized as one of the "Best Banks to Work For" for seven consecutive years [4]
United munity Banks(UCBI) - 2024 Q1 - Quarterly Report
2024-05-09 20:04
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 March 31, 2024 OR (State of incorporation) (I.R.S. Employer Identification No.) 125 Highway 515 East Blairsville, Georgia 30512 (Address of principal executive offices) (Zip code) (706) 781-2265 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ☐ ...
United munity Banks(UCBI) - 2024 Q1 - Earnings Call Transcript
2024-04-25 00:27
Financial Data and Key Metrics Changes - Operating earnings per share for Q1 2024 was $0.52, a decrease of $0.01 from the previous quarter, attributed to seasonally higher employment costs [7] - Operating return on assets increased slightly to 93 basis points from 92 basis points in the last quarter [7] - Net interest margin held steady, increasing by 1 basis point on a GAAP basis and 2 basis points on a core basis, excluding loan accretion income [8][24] - Total losses were reported at 28 basis points, with core bank losses at 12 basis points when excluding higher loss portfolios [10] Business Line Data and Key Metrics Changes - Loan growth for the quarter was 1.2%, lower than anticipated, with commercial real estate portfolios remaining flat [9][22] - Non-interest income increased by $8.6 million to $37.2 million, primarily driven by better mortgage fee income [18] - The allowance for credit losses remained flat quarter-to-quarter, with $12.9 million set aside to cover net charge-offs [20] Market Data and Key Metrics Changes - The cost of deposits increased by 8 basis points to 2.32%, with deposit betas now above the industry median at 44% [14] - Overall deposit levels were relatively flat, with a noted shrinkage in public funds deposits [21] Company Strategy and Development Direction - The company is focusing on organic growth through internal teams and improving pricing strategies to enhance net interest margins [65] - There is an ongoing evaluation of M&A opportunities, although the primary focus remains on internal growth and stabilization of existing franchises [66] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook despite the potential negative impacts of the Fed's efforts to slow the economy [11] - The company anticipates low single-digit loan growth for the remainder of the year, contingent on interest rate stability [40] Other Important Information - The company received recognition from J.D. Power for retail banking satisfaction in the Southeast, marking the 10th time it has achieved this accolade [31] Q&A Session Summary Question: Growth outlook for the rest of the year - Management expects low single-digit loan growth greater than Q1, but significant growth is not anticipated without changes from the Fed [40] Question: Deposit growth expectations - The strategy includes being more aggressive in pricing for core depositors, which may lead to some price-sensitive customers leaving [42] Question: Trends in mortgage production - Mortgage production is expected to increase in Q2, but seasonal upticks may not be as pronounced due to current interest rates [49] Question: Credit quality and Navitas loans - Management believes losses in the Navitas portfolio have crested and expect continued improvement in the second quarter [61] Question: Margin expectations in light of rate cuts - The company is neutral to rate cuts, expecting margins to remain stable or improve slightly absent cuts [70] Question: Expense outlook for the remainder of 2024 - A slight increase in expenses is expected in Q2 due to merit increases, with a flattening out for the rest of the year [76]
United munity Banks(UCBI) - 2024 Q1 - Quarterly Results
2024-04-24 11:41
Financial Performance - Net income for the first quarter was $62.6 million, with pre-tax, pre-provision income of $93.7 million[2]. - Diluted earnings per share (EPS) decreased by 2% year-over-year to $0.51, but increased by 364% compared to the fourth quarter of 2023[2][9]. - Total revenue for the quarter was $225.8 million, a 3% increase from the previous quarter[10]. - Net income for the first quarter of 2024 was $62,631,000, compared to $63,288,000 in the previous quarter, reflecting a decrease of 1.04%[11]. - Net income for the first quarter of 2024 was $62,631 thousand, slightly up from $62,300 thousand in the same period of 2023, representing an increase of 0.53%[15]. - Total interest revenue rose to $336,728 thousand in Q1 2024, a 20.5% increase from $279,487 thousand in Q1 2023[15]. Asset and Deposit Growth - Total assets increased to $27,364,888 thousand as of March 31, 2024, compared to $27,297,251 thousand at December 31, 2023, reflecting a growth of 0.25%[14]. - As of March 31, 2024, United Community Banks, Inc. reported total assets of $27.3 billion, an increase from $25.8 billion in 2023, representing a growth of approximately 5.4%[19]. - Total deposits remained stable at $23,332,009 thousand as of March 31, 2024, compared to $23,310,611 thousand at December 31, 2023[14]. - United Community's total liabilities increased to $23,895,349 thousand in 2024 from $22,637,831 thousand in 2023, representing a growth of approximately 5.6%[16]. Loan and Credit Quality - Core deposits grew by 5% annualized, while loans increased at a rate of 1.2% annualized during the quarter[3][9]. - Total loans increased by $56 million from the previous quarter to $18,375 million, marking a year-over-year increase of $1,250 million[12]. - Nonperforming assets (NPAs) increased to 0.39% of total assets, up 5 basis points from the previous quarter[5][9]. - Net charge-offs were $12.9 million, representing 0.28% of average loans, an increase of 6 basis points from the fourth quarter[5][9]. - The net charge-offs for commercial and industrial loans were $3,906 thousand in Q1 2024, with a net charge-off rate of 0.65%[13]. - The allowance for credit losses was $212,996 thousand as of March 31, 2024, compared to $167,584 thousand in 2023, reflecting an increase of approximately 27%[16]. Income and Efficiency Metrics - Noninterest income was $39.6 million, significantly up from a loss of $23.1 million in the fourth quarter[10]. - The efficiency ratio (GAAP) for the first quarter of 2024 was 60.47%, an improvement from 66.33% in the previous quarter[11]. - Total noninterest income increased to $39,587 thousand in Q1 2024, up from $30,209 thousand in Q1 2023, marking a growth of 31.1%[15]. Interest and Yield Metrics - Net interest margin rose by 1 basis point to 3.20%, with the average yield on interest-earning assets increasing by 8 basis points to 5.39%[5][9]. - The net interest margin (FTE) decreased to 3.20% in Q1 2024 from 3.61% in Q1 2023, a decline of 11.4%[16]. - The net interest revenue after provision for credit losses was $186,250 thousand in Q1 2024, slightly down from $189,687 thousand in Q1 2023[15]. - Interest-bearing deposits rose to $16,781,964 thousand in 2024, compared to $13,696,908 thousand in 2023, marking an increase of approximately 22.5%[16]. - The average rate on loans increased to 6.24% in Q1 2024 from 5.68% in Q1 2023, a rise of 9.8%[16]. Shareholder Metrics - The quarterly common shareholder dividend remained flat at $0.23 per share year-over-year[9][10]. - The book value per common share (GAAP) increased to $26.83 from $25.98 in the previous quarter[11]. - The total shareholders' equity rose to $3,300,110 thousand as of March 31, 2024, compared to $3,261,525 thousand at December 31, 2023, reflecting an increase of 1.18%[14]. Awards and Recognition - United Community was recognized as a top 100 U.S. financial institution and received multiple awards for customer satisfaction and workplace excellence in 2024[19]. - The company operates 205 offices across six states and has a national SBA lending franchise and equipment lending subsidiary[19].