Financial Performance - Net income for Q1 2025 was $71,413 thousand, compared to $62,631 thousand in Q1 2024, marking a year-over-year increase of 14.2%[14]. - Total revenue for Q1 2025 was $248 million, an increase from $239 million in Q1 2024, reflecting a growth of approximately 3.8%[131]. - Basic net income per common share increased to $0.58 in Q1 2025 from $0.51 in Q1 2024, representing a growth of 13.7%[14]. - The net income available to common shareholders for Q1 2025 was $69,429,000, compared to $60,713,000 in Q1 2024, reflecting an increase of 14.2%[117]. - Comprehensive income for Q1 2025 was $97,773 thousand, compared to $65,188 thousand in Q1 2024, reflecting a significant increase of 49.9%[15]. Asset and Liability Management - Total assets increased to $27,873,718 thousand as of March 31, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 0.55%[12]. - Total liabilities, including deposits, were $23,758,945,000 as of March 31, 2025, compared to $23,453,487,000 at December 31, 2024, an increase of 1.3%[112]. - The carrying amount for loans and leases held for investment was $4,549,948,000 as of March 31, 2025, compared to $4,628,030,000 as of December 31, 2024, a decrease of 1.7%[83]. - Cash and cash equivalents at the end of the period rose to $636,712,000 from $961,933,000, showing a net change of $116,839,000[19]. Credit Quality and Loss Provisions - The provision for credit losses increased to $15,419 thousand in Q1 2025, compared to $12,899 thousand in Q1 2024, reflecting a rise of 19.5%[14]. - The allowance for credit losses (ACL) for loans increased by $4.98 million, or 2%, to $211.974 million, with the ACL as a percentage of total loans rising slightly to 1.15% from 1.14%[165]. - Nonaccrual loans totaled $91,338 as of March 31, 2025, compared to $113,579 as of December 31, 2024, indicating a decrease of about 19.6%[51]. - The total charge-offs for the ACL during Q1 2025 amounted to $12.379 million, while recoveries were $2.772 million[75]. Deposits and Funding - Total deposits rose to $23,762,405 thousand as of March 31, 2025, from $23,460,975 thousand at the end of 2024, indicating a growth of 1.29%[12]. - Customer deposits increased by $309 million since December 31, 2024, reaching a total of $23.60 billion as of March 31, 2025[174]. - The bank's total deposits included approximately $9.78 billion in uninsured deposits, with $3.04 billion collateralized by investment securities[174]. Investment Securities - The total investment securities portfolio was valued at $6.66 billion, a decrease of $143.18 million from $6.80 billion on December 31, 2024[172]. - The fair value of HTM debt securities was $1.95 billion, reflecting net unrealized losses of $386 million primarily due to interest rate changes[173]. - The carrying amount of AFS debt securities increased to $994,491,000 as of March 31, 2025, from $812,166,000 as of December 31, 2024, reflecting an increase of 22.4%[83]. Operational Efficiency - Total noninterest expenses decreased to $141,099 thousand in Q1 2025 from $145,002 thousand in Q1 2024, a reduction of 2.0%[14]. - The efficiency ratio (GAAP) improved to 56.74% in Q1 2025 from 60.47% in Q1 2024, indicating better operational efficiency[144]. - The company recorded a decrease in FDIC assessments and other regulatory charges by $2.924 million, or 39%, compared to the first quarter of 2024[156]. Capital Position - As of March 31, 2025, United Community Banks, Inc. reported a CET1 capital ratio of 13.29%, up from 13.27% on December 31, 2024, significantly exceeding the minimum requirement of 4.5%[119]. - Total common shareholders' equity increased to $3.50 billion, up by $68.8 million from December 31, 2024[186]. Market and Economic Conditions - The baseline economic forecast as of March 31, 2025, worsened slightly compared to December 31, 2024, due to uncertainties in federal policies[72]. - A qualitative adjustment added $7.17 million to the ACL balance for loans affected by Hurricane Helene, down from $9.80 million at the end of 2024[72].
United Community Banks, Inc.(UCB) - 2025 Q1 - Quarterly Report