United munity Banks(US:UCBI)2024-08-09 16:29Financial Performance - United Community Banks, Inc. reported a net income of $45 million for Q4 2023, representing a 10% increase year-over-year[6]. - The return on equity (ROE) for the year was reported at 12.5%, an increase from 11.8% in 2022[6]. - Net income for Q2 2024 was $66.615 million, compared to $63.288 million in Q2 2023, reflecting a 5.8% increase[15]. - Net income for the six months ended June 30, 2024, was $129,246 thousand, compared to $125,588 thousand for the same period in 2023, reflecting a growth of 1.3%[20]. - The company reported a comprehensive income of $68.713 million for Q2 2024, compared to $51.818 million in Q2 2023[16]. - The net income available to common shareholders for the six months ended June 30, 2024, was $125,387,000, compared to $121,470,000 for the same period in 2023, an increase of 3.2%[127]. Asset Management - The company’s total assets reached $18.5 billion, up 8% from the previous year[6]. - Total assets as of June 30, 2024, amount to $3,770,507,000, with Level 1 assets at $492,195,000, Level 2 assets at $3,219,921,000, and Level 3 assets at $58,391,000[104]. - The carrying amount of investments in Low-Income Housing Tax Credit (LIHTC) partnerships increased to $55,992,000 as of June 30, 2024, from $48,867,000 as of December 31, 2023[134]. Loan and Credit Quality - Nonperforming assets (NPAs) decreased to 0.5% of total assets, down from 0.7% in the prior year[6]. - The provision for credit losses was $5 million, reflecting a decrease of 20% compared to the same quarter last year[6]. - The provision for credit losses decreased significantly to $25,134 thousand in 2024 from $44,536 thousand in 2023, a reduction of 43.7%[20]. - The allowance for credit losses (ACL) on loans was $213,022 as of June 30, 2024, slightly up from $208,071 as of December 31, 2023[47]. - The risk ratings for commercial loans are continuously analyzed, with categories including Pass, Special Mention, Substandard, Doubtful, and Loss, reflecting the credit risk associated with borrowers[58]. Revenue and Expenses - Total interest revenue for Q2 2024 reached $346.965 million, a 17.3% increase from $295.775 million in Q2 2023[13]. - Total revenue for the first six months of 2024 was $458.858 million, compared to $433.816 million for the same period in 2023, marking an increase of 5.8%[13]. - Total noninterest expenses increased to $147.044 million from $132.407 million, representing an 11.0% rise year-over-year[13]. - Operating expenses were recorded at $28,895 million, representing a significant investment in growth[1]. Strategic Initiatives - United plans to expand its market presence by opening two new branches in the Southeast region in 2024[8]. - The company has identified potential acquisition targets in the regional banking sector to further its growth strategy[8]. - The company is exploring strategic acquisitions to bolster market position[1]. Technology and Innovation - The bank is investing $2 million in technology upgrades to enhance digital banking services[8]. - Research and development expenditures reached $8,712 million, focusing on innovative technologies[1]. Market Position and Growth - The company expects a loan growth of 7% to 9% for the upcoming fiscal year[7]. - Future guidance suggests an expected revenue increase of 10% for the next quarter[1]. - Market expansion efforts are projected to enhance user base by 15% in the upcoming year[1]. Capital and Shareholder Returns - Common stock dividends paid were $55,080 thousand for the six months ended June 30, 2024, compared to $50,493 thousand in 2023, representing an increase of 9.4%[20]. - Total capital as of June 30, 2024, was $2,969,633,000, up from $2,898,474,000 as of December 31, 2023, indicating a growth of 2.5%[128]. - The Common Equity Tier 1 (CET1) capital ratio was 12.79% as of June 30, 2024, exceeding the well-capitalized guideline of 6.5%[128]. Derivatives and Hedging - The total notional amount of derivatives designated as hedging instruments was $2,560,628 thousand, with a fair value of $13,325 thousand as of June 30, 2024[78]. - The net income recognized on AFS securities fair value hedges was $6,340 thousand for the six months ended June 30, 2024[82]. - The company manages credit exposure on derivatives through bilateral credit support agreements with counterparties[88]. Goodwill and Intangible Assets - The carrying amount of goodwill and other intangible assets is $978.645 million, down from $990.087 million as of December 31, 2023[91]. - The company reported a $5.10 million write-down to the goodwill associated with FinTrust, which is expected to close in Q3 2024[92].