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United munity Banks(UCBI) - 2025 Q1 - Quarterly Results
UCBIUnited munity Banks(UCBI)2025-04-22 11:36
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Financial Performance - Diluted earnings per share were 0.58(GAAP)and0.58 (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,a51.25, 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,comparedto0.58, 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 27.9billion,withtotaldepositsat27.9 billion, with total deposits at 23.8 billion and total loans at 18.4billion[11].−Customerdepositsincreasedby18.4 billion[11]. - Customer deposits increased by 309 million, or 5.4% annualized, from 4Q24, with noninterest-bearing deposits growing by 46million,or3.046 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 1.3billion,or391.3 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 141,099thousand,adecreasefrom141,099 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,reflectinga1020.58, 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 375millionindeposits[12].−ThecompanyexpectstheANBacquisitiontocloseonMay1,2025,withananticipatedtangiblebookvaluedecreaseofapproximately375 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 200millioninrevenueoverthenexttwoquarters[84].−Thecompanyisexploringstrategicacquisitionsinthefintechspacetoenhanceitsserviceofferings[84].MarketandGrowthProjections−Thecompanyisfocusedonhigh−growthSoutheastMSAs,withJacksonville,FLprojectedtogrowby8.26200 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 35,656thousand,comparedto35,656 thousand, compared to 40,522 thousand in 4Q24[81].