PART I This section presents the unaudited consolidated financial statements and management's analysis for Q1 2025 Item 1. Financial Statements This section presents United Community Banks' unaudited consolidated financial statements for Q1 2025, including balance sheets, income, equity, cash flows, and related notes Consolidated Balance Sheets (Unaudited) This chapter details the company's financial position, including assets, liabilities, and shareholders' equity at quarter-end Consolidated Balance Sheet Highlights (in thousands): | Item | March 31, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Total assets | $27,873,718 | $27,720,258 | $153,460 | 0.55% | | Total liabilities | $24,372,822 | $24,288,131 | $84,691 | 0.35% | | Total shareholders' equity | $3,500,896 | $3,432,127 | $68,769 | 2.00% | | Loans and leases, net | $18,213,391 | $17,968,982 | $244,409 | 1.36% | | Total deposits | $23,762,405 | $23,460,975 | $301,430 | 1.28% | Consolidated Statements of Income (Unaudited) This chapter presents the company's revenues, expenses, and net income for the three months ended March 31 Consolidated Statements of Income Highlights (Three Months Ended March 31, in thousands): | Item | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net interest revenue | $212,021 | $199,149 | $12,872 | 6.46% | | Total noninterest income | $35,656 | $39,587 | $(3,931) | -9.93% | | Total revenue | $247,677 | $238,736 | $8,941 | 3.74% | | Provision for credit losses | $15,419 | $12,899 | $2,520 | 19.54% | | Total noninterest expenses | $141,099 | $145,002 | $(3,903) | -2.69% | | Net income | $71,413 | $62,631 | $8,782 | 14.02% | | Diluted EPS | $0.58 | $0.51 | $0.07 | 13.73% | Consolidated Statements of Comprehensive Income (Unaudited) This chapter outlines the company's comprehensive income, including net income and other comprehensive income, for the quarter Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, in thousands): | Item | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Net income | $71,413 | $62,631 | $8,782 | 14.02% | | Total other comprehensive income | $26,360 | $2,557 | $23,803 | 930.93% | | Comprehensive income | $97,773 | $65,188 | $32,585 | 50.00% | - The significant increase in total other comprehensive income in 2025 was primarily driven by unrealized holding gains on available-for-sale securities of $26.45 million, compared to $0.15 million in 202415 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) This chapter details changes in shareholders' equity, including net income, other comprehensive income, and dividends Shareholders' Equity Changes (Three Months Ended March 31, in thousands): | Item | March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | :------------- | :---------------- | | Total shareholders' equity (End of Period) | $3,500,896 | $3,432,127 | $3,300,110 | $3,261,525 | | Net income | $71,413 | N/A | $62,631 | N/A | | Other comprehensive income | $26,360 | N/A | $2,557 | N/A | | Common stock dividends | $(29,007) | N/A | $(27,665) | N/A | | Accumulated other comprehensive loss | $(186,559) | $(212,919) | $(236,635) | $(239,192) | - Shareholders' equity increased by $68.77 million from December 31, 2024, primarily due to net income and other comprehensive income, partially offset by common and preferred stock dividends17186 Consolidated Statements of Cash Flows (Unaudited) This chapter presents the company's cash flows from operating, investing, and financing activities for the quarter Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, in thousands): | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $98,632 | $88,809 | $9,823 | | Net cash used in investing activities | $(56,579) | $(122,513) | $65,934 | | Net cash provided by (used in) financing activities | $74,786 | $(8,238) | $83,024 | | Net change in cash and cash equivalents | $116,839 | $(41,942) | $158,781 | | Cash and cash equivalents, end of period | $636,712 | $961,933 | $(325,221) | - Net cash provided by financing activities significantly improved from a net use in 2024 to a net provision in 2025, driven by a net increase in deposits of $301.39 million and a decrease in short-term borrowings19 Notes to Consolidated Financial Statements This chapter provides detailed explanations of accounting policies, significant estimates, and specific financial statement line items Note 1 – Basis of Presentation This note describes the basis of preparation for the financial statements, adhering to GAAP and regulatory guidelines - United's financial statements conform to GAAP and banking regulatory guidelines, with all material intercompany balances and transactions eliminated. Interim statements are unaudited and reflect normal, recurring adjustments2122 Note 2 – Investment Securities This note details the composition and fair value of the company's investment securities, including HTM and AFS portfolios HTM Debt Securities (in thousands): | Item | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Amortized Cost | $2,338,571 | $2,368,107 | | Fair Value | $1,952,235 | $1,944,126 | | Gross Unrealized Losses | $386,351 | $423,992 | AFS Debt Securities (in thousands): | Item | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Amortized Cost | $4,507,626 | $4,664,300 | | Fair Value | $4,322,644 | $4,436,291 | | Gross Unrealized Losses | $194,386 | $231,896 | - Unrealized losses on both HTM and AFS debt securities decreased from December 31, 2024, primarily due to changes in interest rates. The company does not intend to sell these securities prior to recovery of their amortized cost basis242732 [Note 3 – Loans and Leases and Allowance for Credit Losses](index=15&type=section&id=Note%203%20%
UNITED COM(UCBIO) - 2025 Q1 - Quarterly Report