United munity Banks(UCBI) - 2024 Q4 - Annual Results

Financial Performance - Diluted earnings per share were $0.61 (GAAP) and $0.63 (operating), with a return on assets of 1.06% (GAAP) and 1.01% (operating)[10] - Noninterest income for 4Q24 was $40.5 million, up $32.4 million year-over-year, primarily due to the bond restructuring in 4Q23[45] - Diluted earnings per share (GAAP) improved from $0.11 in 4Q23 to $0.61 in 4Q24, indicating strong earnings growth[88] - Return on assets (GAAP) increased from 0.18% in 4Q23 to 1.06% in 4Q24, demonstrating enhanced asset efficiency[90] - The company reported a return on common equity (GAAP) of 8.40% in 4Q24, up from 1.44% in 4Q23, highlighting improved profitability[88] Asset and Loan Growth - Total assets reached $27.7 billion, with total deposits at $23.5 billion and total loans at $18.2 billion[8] - Customer deposits increased by $213 million, or 3.7% annualized, from Q3 2024, with public funds up $414 million seasonally[20] - Loan growth was 4.7% annualized, primarily driven by commercial and industrial (C&I) loans, equipment finance, and home equity lines of credit (HELOC)[30] - Approximately $8.0 billion, or 44%, of total loans are variable rate and reprice or mature within one year, indicating potential interest rate sensitivity[41] - The total outstanding loans amount to $841.3 million, representing 4.6% of total loans, with an average loan size of $1.4 million[66] Capital and Efficiency Ratios - The efficiency ratio improved to 55.2% (operating) from 56.1% (GAAP) in Q4 2024[11] - The tangible common equity to tangible assets ratio was 13.2% in Q4 2024, indicating strong capital ratios[33] - The leverage ratio decreased by 3 basis points to 9.96% compared to 3Q24, maintaining strong regulatory capital ratios[38] - The efficiency ratio (GAAP) improved from 66.33% in 4Q23 to 56.05% in 4Q24, indicating better operational efficiency[90] - Tangible common equity to tangible assets ratio increased from 8.36% in 4Q23 to 8.97% in 4Q24, reflecting a stronger capital position[90] Credit Quality and Losses - Net charge-offs for 4Q24 were $9.5 million, or 0.21% of loans annualized, with Navitas losses contributing 0.13%[53] - Nonperforming assets remained flat at 0.64% of total loans, while past due loans improved to 0.17%[53] - The allowance for credit losses (ACL) remained stable at 1.20% of the portfolio, with a provision of $11.4 million covering charge-offs and loan growth for the quarter[57] - The company redeemed $60 million in subordinated debt, which represented 30 basis points of qualifying Tier 2 capital in 3Q24[38] Acquisition and Future Plans - The acquisition of ANB Holdings, Inc. is expected to close in Q2 2025, adding approximately $440 million in assets and $375 million in deposits[9] - The company plans to close the ANB acquisition in 2Q25, expecting a tangible book value decrease of approximately $0.13 and a CET1 decrease of 7 basis points[38] - The company plans to continue focusing on market expansion and new product development to drive future growth[88] Portfolio Composition - The bank's securities portfolio was valued at $6.8 billion, providing significant liquidity[31] - The top 100 loans outstanding total $501 million, accounting for 60% of the total office portfolio[65] - The multi-family portfolio has an outstanding balance of $977.2 million, which is 5.4% of total loans, with the largest loan size being $41.0 million[73] - 49% of loans in the senior care portfolio are classified as substandard accruing, totaling $113.4 million[75] - 79% of locked loans were fixed-rate mortgages, with mortgage locks totaling $285 million in 4Q24[82] Operational Metrics - Average core deposit growth was $161 million, with 51% of time deposits maturing in Q1 2025 at an average rate of 4.14%[21] - 4Q24 net interest revenue increased by $1.1 million from 3Q24, reaching $210.3 million, while the core net interest margin decreased by 7 basis points to 3.19%[39][41] - Operating expenses (GAAP) decreased slightly from $154,587 thousand in 4Q23 to $143,056 thousand in 4Q24, showing cost management efforts[88] - The company reported a gain on sale of loans that increased slightly in 4Q24 due to product mix and rate environment[82]