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] - The efficiency ratio improved to 56.1% (GAAP) and 55.2% (operating), indicating better operational performance[11] - The company maintains a strong capital position with a Common Equity Tier 1 (CET1) ratio of 13.2%[34] - The net interest margin was reported at 3.26%, reflecting the company's effective interest rate management[10] - The operating efficiency ratio improved to 55.2%, down from the prior quarter and year, indicating enhanced operational efficiency[49] - Noninterest income on a GAAP basis rose by $32.4 million to $40.5 million, primarily due to the bond restructuring in 4Q23[45] - Diluted earnings per share (EPS) increased from $0.11 in 4Q23 to $0.61 in 4Q24, reflecting a strong performance improvement[88] - Return on assets (ROA) improved from 0.18% in 4Q23 to 1.06% in 4Q24, indicating enhanced profitability[90] - The efficiency ratio decreased from 66.33% in 4Q23 to 56.05% in 4Q24, demonstrating better cost management[90] - Tangible common equity to tangible assets ratio increased from 8.36% in 4Q23 to 8.97% in 4Q24, indicating a stronger capital position[90] - The book value per share increased from $26.52 in 4Q23 to $27.87 in 4Q24, reflecting growth in shareholder equity[88] - The company reported a loss on the sale of manufactured housing loans of $27,209 thousand in 3Q24, which was not repeated in subsequent quarters[88] - The return on tangible common equity (ROTE) improved from 10.58% in 4Q23 to 12.12% in 4Q24, indicating better returns for shareholders[90] - The company experienced a goodwill impairment loss of $5,100 thousand in 2Q24, impacting overall earnings[88] Asset and Loan Management - 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[41] - Nonperforming assets were 0.64% of total loans, flat from 3Q24, while past due loans improved to 0.17%[53] - The total outstanding loans in the office portfolio amount to $841.3 million, representing 4.6% of total loans, with an average loan size of $1.4 million[66] - The top 100 loans in the office portfolio account for $501 million, or 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 an average loan size of $2.8 million[73] - The top 100 loans in the multi-family portfolio total $889.5 million, representing 91% of the total multi-family portfolio[71] - The senior care portfolio has an outstanding balance of $311.9 million, which is 1.7% of total loans, with an average loan size of $7.1 million[75] - The average loan-to-value (LTV) ratio for the office portfolio is 62.0%, while the multi-family portfolio has a weighted average LTV of 49.6%[65][70] Interest and Deposit Management - Time deposits are set to mature significantly, with 51% maturing in Q1 2025 at an average rate of 4.14%[21] - The average deposit costs decreased to 2.20% in 4Q24, down from 2.35% in 3Q24[59] - 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%[41] Strategic Acquisitions - 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] Awards and Recognition - The company received 15 Greenwich Excellence Awards for outstanding performance in small business and middle market banking in 2023[8] Charge-offs and Credit Losses - Net charge-offs for 4Q24 were $9.5 million, or 0.21% of loans annualized, with Navitas losses contributing 0.13%[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[57]
United Community Banks, Inc.(UCB) - 2024 Q4 - Annual Results