United munity Banks(US:UCBI)2024-10-23 11:52Financial 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].