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]

Financial Performance - Diluted earnings per share were $0.61 (GAAP) and $0.63 (operating), with a return on assets of 1.06% (GAAP) and 1.01% (operating)[10] - Noninterest income for 4Q24 was $40.5 million, up $32.4 million year-over-year, primarily due to the bond restructuring in 4Q23[45] - Diluted earnings per share (GAAP) improved from $0.11 in 4Q23 to $0.61 in 4Q24, indicating strong earnings growth[88] - Return on assets (GAAP) increased from 0.18% in 4Q23 to 1.06% in 4Q24, demonstrating enhanced asset efficiency[90] - The company reported a return on common equity (GAAP) of 8.40% in 4Q24, up from 1.44% in 4Q23, highlighting improved profitability[88] Asset and Loan Growth - Total assets reached $27.7 billion, with total deposits at $23.5 billion and total loans at $18.2 billion[8] - Customer deposits increased by $213 million, or 3.7% annualized, from Q3 2024, with public funds up $414 million seasonally[20] - Loan growth was 4.7% annualized, primarily driven by commercial and industrial (C&I) loans, equipment finance, and home equity lines of credit (HELOC)[30] - Approximately $8.0 billion, or 44%, of total loans are variable rate and reprice or mature within one year, indicating potential interest rate sensitivity[41] - The total outstanding loans amount to $841.3 million, representing 4.6% of total loans, with an average loan size of $1.4 million[66] Capital and Efficiency Ratios - The efficiency ratio improved to 55.2% (operating) from 56.1% (GAAP) in Q4 2024[11] - The tangible common equity to tangible assets ratio was 13.2% in Q4 2024, indicating strong capital ratios[33] - The leverage ratio decreased by 3 basis points to 9.96% compared to 3Q24, maintaining strong regulatory capital ratios[38] - The efficiency ratio (GAAP) improved from 66.33% in 4Q23 to 56.05% in 4Q24, indicating better operational efficiency[90] - Tangible common equity to tangible assets ratio increased from 8.36% in 4Q23 to 8.97% in 4Q24, reflecting a stronger capital position[90] Credit Quality and Losses - Net charge-offs for 4Q24 were $9.5 million, or 0.21% of loans annualized, with Navitas losses contributing 0.13%[53] - Nonperforming assets remained flat at 0.64% of total loans, while past due loans improved to 0.17%[53] - The allowance for credit losses (ACL) remained stable at 1.20% of the portfolio, with a provision of $11.4 million covering charge-offs and loan growth for the quarter[57] - The company redeemed $60 million in subordinated debt, which represented 30 basis points of qualifying Tier 2 capital in 3Q24[38] Acquisition and Future Plans - The acquisition of ANB Holdings, Inc. is expected to close in Q2 2025, adding approximately $440 million in assets and $375 million in deposits[9] - The company plans to close the ANB acquisition in 2Q25, expecting a tangible book value decrease of approximately $0.13 and a CET1 decrease of 7 basis points[38] - The company plans to continue focusing on market expansion and new product development to drive future growth[88] Portfolio Composition - The bank's securities portfolio was valued at $6.8 billion, providing significant liquidity[31] - The top 100 loans outstanding total $501 million, accounting for 60% of the total office portfolio[65] - The multi-family portfolio has an outstanding balance of $977.2 million, which is 5.4% of total loans, with the largest loan size being $41.0 million[73] - 49% of loans in the senior care portfolio are classified as substandard accruing, totaling $113.4 million[75] - 79% of locked loans were fixed-rate mortgages, with mortgage locks totaling $285 million in 4Q24[82] Operational Metrics - Average core deposit growth was $161 million, with 51% of time deposits maturing in Q1 2025 at an average rate of 4.14%[21] - 4Q24 net interest revenue increased by $1.1 million from 3Q24, reaching $210.3 million, while the core net interest margin decreased by 7 basis points to 3.19%[39][41] - Operating expenses (GAAP) decreased slightly from $154,587 thousand in 4Q23 to $143,056 thousand in 4Q24, showing cost management efforts[88] - The company reported a gain on sale of loans that increased slightly in 4Q24 due to product mix and rate environment[82]

Financial Performance - United Community Banks, Inc. reported a net income of $45 million for Q4 2023, representing a 10% increase year-over-year[7]. - The company’s total assets reached $18.5 billion, up 5% from the previous year[7]. - Net income for Q3 2024 was $47,347 thousand, compared to $47,866 thousand in Q3 2023, a decrease of 1.1%[16]. - Net income for the nine months ended September 30, 2024, was $176,593, compared to $173,454 for the same period in 2023, reflecting a slight increase[22]. - The company reported a total revenue of $70,500 million, compared to $51,812 million in the prior period, reflecting a significant growth[1]. - The current period's net income was reported at $763 million, showing a substantial increase compared to the previous period[1]. Asset Quality - Nonperforming assets (NPAs) decreased to $25 million, a reduction of 15% compared to the prior quarter[7]. - The provision for credit losses was $5 million, reflecting a decrease of 20% year-over-year[7]. - The provision for credit losses decreased significantly to $39,562 in 2024 from $74,804 in 2023, indicating improved asset quality[22]. - The allowance for credit losses (ACL) for loans was $205,290,000, reflecting a decrease of $26,974,000 due to charge-offs[85]. - The company continues to monitor and assess credit risk based on financial information and industry trends[65]. Loan and Deposit Trends - The company expects a loan growth of 8% for the upcoming fiscal year, driven by increased demand in commercial lending[8]. - Total loans as of September 30, 2024, amounted to $17,964,099, a decrease from $18,318,755 as of December 31, 2023, representing a decline of approximately 1.9%[52]. - The company reported a net decrease in deposits of $58,291 for the nine months ended September 30, 2024, compared to an increase of $886,440 in 2023[22]. - Total deposits as of September 30, 2024, amounted to $23.253 billion, compared to $23.311 billion as of December 31, 2023[134]. Revenue and Expense Analysis - Total interest revenue for Q3 2024 was $349,086 thousand, an increase of 8.1% from $323,147 thousand in Q3 2023[14]. - Noninterest income for Q3 2024 decreased to $8,091 thousand from $31,977 thousand in Q3 2023, a decline of 74.7%[14]. - Total noninterest expenses for Q3 2024 were $143,065 thousand, slightly down from $144,474 thousand in Q3 2023[14]. - The company experienced a total of $398 million in charge-offs, which is a notable increase from $187,799 million in the prior period[1]. Capital Position - United's CET1 ratio stands at 10.5%, above the regulatory minimum, indicating strong capital position[7]. - CET1 capital ratio increased to 13.07% as of September 30, 2024, compared to 12.16% on December 31, 2023[149]. - Total capital ratio rose to 15.31% as of September 30, 2024, up from 14.49% at the end of 2023[149]. - The company has authorized a common stock repurchase program of up to $100 million, extended through December 31, 2025[159]. Strategic Initiatives - United plans to expand its market presence by opening two new branches in the Southeast region by mid-2024[9]. - The company has initiated a strategic review of potential acquisition targets in the regional banking sector[9]. - The company has indicated plans for market expansion and new product development in the upcoming quarters[1]. - Strategic acquisitions are being considered to bolster the company's competitive position in the market[1]. Changes in Regulatory and Operational Structure - United Community Banks, Inc. moved its Holding Company headquarters from Blairsville, Georgia to Greenville, South Carolina in May 2024[25]. - The Bank changed its primary federal regulator from the FDIC to the Federal Reserve effective June 2024[25]. - United transferred the listing of its securities from NASDAQ to the New York Stock Exchange, with common shares now listed under the symbol UCB[25]. Technology and Investment - The bank is investing $2 million in technology upgrades to enhance its digital banking services[9]. - United adopted a new accounting standard in March 2023, which broadened the application of the Proportional Amortization Method for tax equity investments[28]. Market and Economic Outlook - The management anticipates a stable interest rate environment, which could positively impact net interest margins in 2024[9]. - Future guidance suggests a continued upward trend in revenue growth, with expectations of reaching $80,000 million in the next fiscal year[1].

Financial Performance - The company reported a diluted earnings per share of $0.57 on a GAAP basis and $0.38 on an operating basis[7]. - Return on common equity was 5.20% (GAAP) and 11.17% (operating), while return on assets was 0.67% (GAAP) and 1.01% (operating)[7]. - The return on assets increased from 0.68% in Q4 2023 to 0.97% in Q3 2024, reflecting improved financial performance[56]. - The pre-tax, pre-provision return on assets increased from 1.07 in Q3 2024 to 1.44 in Q3 2024, indicating stronger profitability before accounting for taxes and provisions[56]. - The efficiency ratio for Q3 2024 was 61.3%, impacted by the one-time sale of the manufactured housing portfolio[29]. - The efficiency ratio for Q4 2023 was not provided, indicating potential areas for improvement in operational efficiency[56]. - The company is expected to continue monitoring its efficiency ratio and return on assets to enhance overall performance[56]. Asset and Loan Management - Total assets reached $27.4 billion, with total loans at $18.0 billion and total deposits at $23.3 billion[6]. - Total loans for Q3 2024 reached $18.0 billion, reflecting an 18% growth excluding the manufactured housing sale[18]. - Loan shrinkage was primarily driven by a $318 million sale of the manufactured housing portfolio, with senior care portfolio down $38 million, or 11% from Q2 2024[18]. - The allowance for credit losses (ACL) was $216 million, representing 1.20% of total loans[38]. - There were no significant changes reported in the allowance for credit losses, suggesting stable credit quality[59]. Deposits and Funding - Total deposits increased by $271 million, or 4.7% annualized, from 2Q24, with core transaction deposits up $244 million, or 5.9% annualized[14]. - The cost of deposits remained flat at 2.35% in 3Q24, with a shift towards promotional money market accounts[14]. - Average total deposits for 3Q24 were $23.0 billion with an average interest rate of 2.35%[39]. - Total interest-bearing deposits reached $16.8 billion in 3Q24, with an average rate of 3.23%[39]. - The average account size for business deposits was $75,977, while personal deposits averaged $20,033[16]. Noninterest Income and Expenses - Noninterest income decreased by $1.3 million from Q2 2024, primarily due to a $3.3 million negative swing in the mortgage servicing rights mark[27]. - Noninterest income for Q3 2023 was reported at $39.587 million, with a GAAP loss of $23.090 million[53]. - Total operating expenses for Q3 2023 were $154.587 million, with merger-related and other charges not specified[53]. Community Engagement and Donations - The company made a $350 thousand donation towards community relief efforts following Hurricane Helene[9]. Market Presence and Growth - UCBI's presence in the top 10 MSAs accounts for 21.9% of total deposits[51]. - Raleigh, NC has the highest percentage of total deposits at 3.73%, followed by Atlanta, GA at 21.85%[50]. - Projected population growth for the fastest growing major Southeast MSAs from 2023 to 2028 is significant, indicating potential market expansion[51]. - The projected household income growth from 2023 to 2028 in the fastest growing MSAs indicates a favorable economic environment for expansion[51]. - The company is focusing on new strategies for market expansion and product development to enhance its competitive position[51]. Investment and Securities - The company purchased $457 million in securities with an average yield of 5.35% during Q3 2024[25]. Miscellaneous - The company has a well-diversified loan portfolio, with business deposits totaling $8.9 billion and personal deposits at $11.3 billion[16]. - The tangible common equity ratio increased to 8.93%, up 15 basis points from Q2 2024[22]. - The top 25 relationships accounted for $912 million, or 5.1% of total loans[18]. - The average balance of NOW accounts in 3Q24 was $5.8 billion with an average rate of 2.98%[39]. - The weighted average loan-to-value (LTV) for the office portfolio was 61.7% in 3Q24, with total outstanding loans of $481.6 million[43]. - The multi-family portfolio had an outstanding balance of $906.0 million with a weighted average LTV of 50.3%[44]. - Mortgage locks in 3Q24 totaled $306 million, an increase from $295 million in 2Q24[48]. - 89% of locked loans in 3Q24 were fixed-rate mortgages, indicating a strong preference for stability in the current rate environment[48]. - The company anticipates potential headwinds in 4Q24 due to Hurricane Helene's impact on property inspections required ahead of loan sales[48]. - The company has not disclosed specific figures for merger-related charges or losses on manufactured housing loans, which may impact future financial results[56]. - The impact of goodwill and intangibles on financial metrics was not detailed, which could affect valuation assessments[56]. - The company is focusing on maintaining a strong equity to assets ratio, although specific figures were not provided[56].

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]

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]

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]

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) 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 ...

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]