Financial Performance - Diluted earnings per share were $0.58 (GAAP) and $0.59 (operating), with a return on assets of 1.02% (GAAP) and 1.01% (operating)[13]. - The company achieved a 7.9% return on common equity (GAAP) and an 11.2% return on tangible common equity (operating)[15]. - Earnings per share (EPS) for the quarter were reported at $1.25, a 5% increase year-over-year[84]. - Return on tangible common equity for 1Q25 was 11.21%, down from 12.12% in 4Q24[83]. Assets and Deposits - Total assets reached $27.9 billion, with total deposits at $23.8 billion and total loans at $18.4 billion[11]. - Customer deposits increased by $309 million, or 5.4% annualized, from 4Q24, while noninterest-bearing deposits grew by $46 million, or 3.0% annualized[23]. - The tangible book value per share increased to $20.58, reflecting a year-over-year improvement of 10%[13]. - The book value per share increased to $28.42 in 1Q25 from $27.87 in 4Q24[81]. Loans and Interest - Net interest revenue increased by $1.7 million, or 3.2% annualized, from 4Q24, with a core net interest margin of 3.31%, up 12 bps[44]. - The net interest margin improved by 16 basis points year-over-year, reaching 3.36%[13]. - Approximately $8.3 billion, or 45%, of total loans are variable rate and reprice or mature within one year[44]. - Rate locks for mortgage activity increased to $330 million in 1Q25, up from $285 million in 4Q24, driven by lower mortgage rates[73]. Operational Efficiency - Operating efficiency ratio improved by 293 basis points year-over-year, indicating enhanced operational performance[13]. - The efficiency ratio improved to 56.2%, down 293 basis points year-over-year, indicating better operational efficiency[54]. - The efficiency ratio for 1Q25 was 56.22%, slightly improved from 56.05% in 4Q24[83]. Credit Quality - 1Q25 net charge-offs were $9.6 million, or 0.21% of loans annualized, with nonperforming assets at 0.51% of total loans, down 13 bps from 4Q24[59]. - The allowance for credit losses increased to $223.2 million, with an allowance coverage of 1.21%[62]. - The allowance for credit losses (ACL) was adjusted to $500 million, representing a 20% increase due to anticipated economic conditions[84]. - The company achieved a net charge-off (NCO) rate of 0.45%, a decrease from 0.55% in the previous quarter[84]. Strategic Initiatives - The acquisition of ANB Holdings, Inc. is expected to close on May 1, 2025, with approximately $440 million in assets and $375 million in deposits[12]. - The company expects the ANB acquisition to close on May 1, 2025, with an anticipated tangible book value decrease of approximately $0.13[41]. - The company is focused on high-growth Southeast MSAs, with projected population growth rates exceeding 8% in areas like Jacksonville, FL[79]. - The company is expanding its footprint in high-growth markets, particularly in the Southeast, to capitalize on demographic trends[79]. - The company plans to expand its mortgage loan office (MLO) network by 25% in the next fiscal year[84]. - The company is exploring strategic acquisitions in the fintech space to enhance its service offerings[84]. Revenue and Expenses - Noninterest income decreased by $4.8 million from 4Q24, primarily due to lower service charges and mortgage fees[49]. - Noninterest income for 1Q25 was $35,656 thousand, compared to $40,522 thousand in 4Q24[81]. - Total expenses for 1Q25 were $141,099 thousand, a decrease from $143,056 thousand in 4Q24[81]. - New product launches are expected to contribute an additional $200 million in revenue over the next two quarters[84]. Capital Ratios - 1Q25 regulatory risk-based capital ratios remained strong, with a leverage ratio of 10.15%, up 19 bps from 4Q24[41]. - The tangible common equity (TCE) ratio improved to 9.5%, up from 9.2% last year[84]. Future Guidance - Future guidance indicates a projected revenue growth of 8% for the upcoming fiscal year[84].
UNITED COM(UCBIO) - 2025 Q1 - Quarterly Results