United Community Banks, Inc.(UCB) - 2025 Q1 - Quarterly Results

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]. - The company achieved a 7.8% annualized growth in deposits, excluding brokered deposits and public funds[23]. - The tangible book value per share increased to $20.58, marking a 10% year-over-year improvement[13]. - The efficiency ratio improved to 56.7% (GAAP) and 56.2% (operating), reflecting operational improvements[15]. - The company reported a year-over-year increase in net interest margin (NIM) by 15 basis points, reaching 3.25%[84]. - Earnings per share (EPS) for the quarter were reported at$ 1.25, a 12% increase year-over-year[84]. - Return on tangible common equity for 1Q25 was 11.21%, down from 12.12% in 4Q24[83]. - The efficiency ratio for 1Q25 was 56.22%, slightly improved from 56.05% in 4Q24[83]. Assets and Deposits - 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 $46 million, or 3.0% annualized[23]. - The acquisition of ANB Holdings, Inc. is expected to close on May 1, 2025, adding approximately$ 440 million in assets and $375 million in deposits[12]. - Approximately$ 8.3 billion, or 45%, of total loans are variable rate and reprice or mature within one year[44]. - Total assets under administration (AUA) grew to $150 billion, reflecting a 10% increase compared to the previous quarter[84]. Interest and Revenue - The net interest margin improved by 16 basis points year-over-year to 3.36%, with net interest revenue increasing by 6% year-over-year[13]. - Net interest revenue increased by$ 1.7 million, or 3.2% annualized, from 4Q24, with a core net interest margin of 3.31%, up 12 bps[44]. - Noninterest income for 1Q25 was $35,656 thousand, compared to$ 40,522 thousand in 4Q24[81]. - Noninterest income decreased by $4.8 million from 4Q24, primarily due to lower service charges and mortgage fees[49]. - Rate locks for mortgage activity increased to$ 330 million in 1Q25, up from $285 million in 4Q24, driven by lower mortgage rates[73]. - New product launches are expected to contribute an additional$ 200 million in revenue over the next two quarters[84]. Credit Quality - 1Q25 net charge-offs were $9.6 million, or 0.21% of loans annualized, with nonperforming assets at 0.51% of total loans, down 13 bps from 4Q24[59]. - The allowance for credit losses increased to$ 223.2 million, with a coverage ratio of 1.21%[62]. - The allowance for credit losses (ACL) was adjusted to $500 million, representing a decrease of 20% from the prior year[84]. - The net charge-offs (NCO) decreased to$ 30 million, down 15% from the last quarter[84]. Capital and Efficiency - The company maintains strong capital ratios, with a Common Equity Tier 1 ratio of 13.3%[36]. - 1Q25 regulatory risk-based capital ratios remained strong, with a leverage ratio of 10.15%, up 19 bps from 4Q24[41]. - The risk-based capital (RBC) ratio improved to 12.5%, exceeding regulatory requirements[84]. - The efficiency ratio improved to 56.2%, down 293 basis points year-over-year, indicating better operational efficiency[54]. Strategic Initiatives - The company is focused on high-growth Southeast MSAs, with projected population growth rates exceeding 8% in areas like Jacksonville, FL, and Raleigh, NC[79]. - The company is targeting market expansion in high-growth areas, particularly in the Southeast, to enhance deposit growth[79]. - The company plans to expand its mortgage loan office (MLO) network by 25% in the next fiscal year[84]. - The company is exploring strategic acquisitions to enhance its market position in commercial real estate (CRE) by 20%[84]. - The company has an outstanding common stock repurchase authorization of $100 million[41].