United munity Banks(UCBI) - 2024 Q3 - Quarterly Report

Financial Performance - United Community Banks, Inc. reported a net income of $45 million for Q4 2023, representing a 10% increase year-over-year[7]. - The company’s total assets reached $18.5 billion, up 5% from the previous year[7]. - Net income for Q3 2024 was $47,347 thousand, compared to $47,866 thousand in Q3 2023, a decrease of 1.1%[16]. - Net income for the nine months ended September 30, 2024, was $176,593, compared to $173,454 for the same period in 2023, reflecting a slight increase[22]. - The company reported a total revenue of $70,500 million, compared to $51,812 million in the prior period, reflecting a significant growth[1]. - The current period's net income was reported at $763 million, showing a substantial increase compared to the previous period[1]. Asset Quality - Nonperforming assets (NPAs) decreased to $25 million, a reduction of 15% compared to the prior quarter[7]. - The provision for credit losses was $5 million, reflecting a decrease of 20% year-over-year[7]. - The provision for credit losses decreased significantly to $39,562 in 2024 from $74,804 in 2023, indicating improved asset quality[22]. - The allowance for credit losses (ACL) for loans was $205,290,000, reflecting a decrease of $26,974,000 due to charge-offs[85]. - The company continues to monitor and assess credit risk based on financial information and industry trends[65]. Loan and Deposit Trends - The company expects a loan growth of 8% for the upcoming fiscal year, driven by increased demand in commercial lending[8]. - Total loans as of September 30, 2024, amounted to $17,964,099, a decrease from $18,318,755 as of December 31, 2023, representing a decline of approximately 1.9%[52]. - The company reported a net decrease in deposits of $58,291 for the nine months ended September 30, 2024, compared to an increase of $886,440 in 2023[22]. - Total deposits as of September 30, 2024, amounted to $23.253 billion, compared to $23.311 billion as of December 31, 2023[134]. Revenue and Expense Analysis - Total interest revenue for Q3 2024 was $349,086 thousand, an increase of 8.1% from $323,147 thousand in Q3 2023[14]. - Noninterest income for Q3 2024 decreased to $8,091 thousand from $31,977 thousand in Q3 2023, a decline of 74.7%[14]. - Total noninterest expenses for Q3 2024 were $143,065 thousand, slightly down from $144,474 thousand in Q3 2023[14]. - The company experienced a total of $398 million in charge-offs, which is a notable increase from $187,799 million in the prior period[1]. Capital Position - United's CET1 ratio stands at 10.5%, above the regulatory minimum, indicating strong capital position[7]. - CET1 capital ratio increased to 13.07% as of September 30, 2024, compared to 12.16% on December 31, 2023[149]. - Total capital ratio rose to 15.31% as of September 30, 2024, up from 14.49% at the end of 2023[149]. - The company has authorized a common stock repurchase program of up to $100 million, extended through December 31, 2025[159]. Strategic Initiatives - United plans to expand its market presence by opening two new branches in the Southeast region by mid-2024[9]. - The company has initiated a strategic review of potential acquisition targets in the regional banking sector[9]. - The company has indicated plans for market expansion and new product development in the upcoming quarters[1]. - Strategic acquisitions are being considered to bolster the company's competitive position in the market[1]. Changes in Regulatory and Operational Structure - United Community Banks, Inc. moved its Holding Company headquarters from Blairsville, Georgia to Greenville, South Carolina in May 2024[25]. - The Bank changed its primary federal regulator from the FDIC to the Federal Reserve effective June 2024[25]. - United transferred the listing of its securities from NASDAQ to the New York Stock Exchange, with common shares now listed under the symbol UCB[25]. Technology and Investment - The bank is investing $2 million in technology upgrades to enhance its digital banking services[9]. - United adopted a new accounting standard in March 2023, which broadened the application of the Proportional Amortization Method for tax equity investments[28]. Market and Economic Outlook - The management anticipates a stable interest rate environment, which could positively impact net interest margins in 2024[9]. - Future guidance suggests a continued upward trend in revenue growth, with expectations of reaching $80,000 million in the next fiscal year[1].