United munity Banks(UCBI) - 2024 Q2 - Quarterly Results

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]