United munity Banks(US:UCBI)2025-07-23 11:38Financial Performance - Diluted earnings per share (GAAP) improved by 17% year-over-year to $0.63, while operating diluted earnings per share increased by 14% to $0.66[11] - Return on assets (GAAP) was 1.11%, reflecting a 14 basis points year-over-year improvement[11] - The return on common equity (ROE) for Q3 2024 was 5.20%, with an operating ROE of 7.82%[81] - The return on assets (ROA) for Q3 2024 was 0.67%, while the operating ROA was 1.01%[83] Assets and Liabilities - Total assets reached $28.1 billion, with total deposits at $24.0 billion and total loans at $18.9 billion[9] - Customer deposits grew by $64 million, or 1.3% annualized, excluding public funds and ANB contributions[22] - ANB acquisition contributed $374 million in deposits and $301 million in loans as of the transaction close date on May 1, 2025[10][27] - The allowance for credit losses (ACL) was $228.0 million, with a coverage ratio of 1.21%, remaining flat compared to the prior quarter[60] Income and Expenses - Noninterest income for 2Q25 was $35.7 million, a decrease of $0.9 million from 1Q25 and $1.8 million from 2Q24, primarily due to lower mortgage fees and brokerage fees[45] - GAAP noninterest expense increased by $6.8 million compared to the prior quarter, with operating noninterest expense rising by $3.3 million, mainly due to merit increases and the ANB acquisition[51] - The total expenses for Q3 2024 were $143,065,000, with operating expenses at $140,889,000[81] Efficiency Ratios - The efficiency ratio improved to 54.8% on an operating basis, down from 56.7% on a GAAP basis[12] - The operating efficiency ratio improved to 54.8% in 2Q25, down 138 basis points quarter-over-quarter and 222 basis points year-over-year, driven by higher revenue growth[50] - The efficiency ratio for Q3 2024 was 65.51%, while the operating efficiency ratio improved to 57.37%[83] Dividends and Shareholder Value - Quarterly common dividend increased by 4% year-over-year to $0.24 per share[37] - Tangible book value per share rose to $21.00, marking a 10% year-over-year improvement[11] - The book value per share (BVPS) for Q3 2024 was $27.68, with a tangible book value per share of $19.66[81] Credit Quality - Net charge-offs for 2Q25 were $8.2 million, or 0.18% of average loans, reflecting strong credit quality and an improvement of $1.4 million from 1Q25[60] - Nonperforming assets improved by $9.3 million during the quarter, representing 0.44% of total loans, down 6 basis points from 1Q25[55] - Navitas loans represented 9% of total loans, with 2Q25 net charge-offs of 1.14% annualized, or $5.0 million[69] Market Trends - UCBI's presence in the top 10 fastest-growing MSAs includes Atlanta, GA with 22.26% of total deposits and projected population growth of 4.39% from 2025 to 2030[79] - Projected household income (HHI) growth in major Southeast MSAs ranges from 6.31% to 12.13% from 2025 to 2030[79] Mortgage Activity - Mortgage locks in 2Q25 totaled $359 million, an increase from $330 million in 1Q25, driven by seasonal momentum[73] - The company sold $175 million in loans during 2Q25, up $34 million from $141 million in 1Q25, with 73% of locked loans being fixed-rate mortgages[75] Interest Rates - Net interest margin increased by 14 basis points to 3.50%, driven by improved funding costs and changes in earning asset mix[40] - The average deposit costs decreased to 2.01% in 2Q25, down from 2.05% in 1Q25, reflecting a trend of declining interest rates[65]