Financial Performance - Diluted earnings per share (EPS) improved to $0.63 GAAP, a 17% year-over-year increase, while operating EPS was $0.66, up 14% year-over-year[11] - Return on assets (ROA) was 1.11% GAAP and 1.01% operating, reflecting a year-over-year improvement of 14 basis points[11] - The tangible book value per share rose to $21.00, marking a 10% year-over-year improvement[11] - The return on tangible common equity (ROTCE) is projected to be 12.12% for Q1 2025, indicating a positive trend in profitability[83] - The company anticipates a return on assets (ROA) of 1.11% for Q2 2025, up from 0.67% in Q3 2024[83] Asset and Loan Growth - 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, with ANB contributing $374 million in deposits[22] - Total loans increased to $18.9 billion, with a 4.2% annualized growth rate excluding ANB, which added $301 million in loans[27] - Navitas loans represented 9% of total loans, with an annualized net charge-off rate of 1.14% in 2Q25, reflecting an 8 basis point improvement from 1Q25[69] Efficiency and Expenses - The efficiency ratio improved to 54.8% on an operating basis, down from 56.7% GAAP[13] - 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] - GAAP noninterest expense increased by $6.8 million compared to the prior quarter, primarily due to merit increases and the ANB acquisition[51] - UCBI's total expenses for Q3 2024 are reported at $143,065,000, with operating expenses at $140,889,000[81] Dividend and Shareholder Returns - The quarterly common dividend was increased to $0.24 per share, a 4% increase compared to the prior year[37] Noninterest Income and Charges - 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] - Noninterest income for Q3 2024 is reported at $8,091,000, with an operating income of $35,300,000 for the same period[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] - 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] Market Expansion and Opportunities - The company closed the acquisition of ANB Holdings, Inc. on May 1, 2025, enhancing its branch network in high-growth markets[10] - 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 key MSAs ranges from 6.31% to 12.13% from 2025 to 2030, supporting market expansion strategies[79] - The company has identified new market opportunities in mid-sized Southeast MSAs, with projected population growth rates exceeding 8% in several areas[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]
UNITED COM(UCBIO) - 2025 Q2 - Quarterly Results