Financial Performance - Net income for the three months ended September 30, 2025, was $91,494 thousand, representing a significant increase of 93.4% compared to $47,347 thousand in the prior year[14]. - Net income for the nine months ended September 30, 2025, was $241,640,000, an increase from $176,593,000 in the same period of 2024, representing a growth of 36.8%[19]. - The company reported a basic net income per common share of $0.71 for the three months ended September 30, 2025, compared to $0.38 in the same period of 2024, marking an increase of 86.8%[14]. - For Q3 2025, net income was $91.5 million, with diluted earnings per share of $0.70, compared to $47.3 million and $0.38 in Q3 2024, representing an increase of 93% in net income[151]. - For the nine months ended September 30, 2025, net income was $242 million, up from $177 million in the same period of 2024, reflecting a year-over-year increase of 37%[151]. Revenue and Income Sources - Net interest revenue for the three months ended September 30, 2025, was $233,629 thousand, up 11.7% from $209,186 thousand in the same period of 2024[14]. - Noninterest income for the nine months ended September 30, 2025, totaled $113,583 thousand, a 34.9% increase from $84,234 thousand in the same period of 2024[14]. - Noninterest income surged by 435% year-over-year to $43,219 thousand in Q3 2025, compared to $8,091 thousand in Q3 2024[161]. - Total revenue rose by 27% year-over-year to $276,848 thousand in Q3 2025, up from $217,277 thousand in Q3 2024[161]. Assets and Liabilities - Total assets increased to $28,143,473 thousand as of September 30, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 1.5%[12]. - Total liabilities increased to $24,546,622 thousand as of September 30, 2025, from $24,288,131 thousand at December 31, 2024, reflecting a growth of 1.1%[12]. - The company’s retained earnings rose to $858,395 thousand as of September 30, 2025, compared to $714,138 thousand at December 31, 2024, an increase of 20.2%[12]. - Total deposits rose to $24,020,618 thousand as of September 30, 2025, an increase of 2.4% from $23,460,975 thousand at December 31, 2024[12]. Credit Quality and Losses - The provision for credit losses decreased to $7,907 thousand for the three months ended September 30, 2025, down from $14,428 thousand in the same period of 2024, indicating improved credit quality[14]. - The company reported a provision for credit losses of $35,144,000 for the nine months ended September 30, 2025, compared to $39,562,000 in 2024, showing a decrease of 11.4%[19]. - The total nonaccrual loans increased to $96,443 thousand as of September 30, 2025, compared to $113,579 thousand at December 31, 2024[62]. - Net charge-offs for the three months ended September 30, 2025, totaled $7.68 million, with a net charge-off to average loans ratio of 0.16%[193]. Acquisition and Market Expansion - The acquisition of ANB on May 1, 2025, added $447 million in assets and $381 million in liabilities, contributing to the company's growth[150]. - The acquisition of ANB is expected to facilitate market expansion for the company in Oakland Park, Florida, enhancing its operational footprint[26]. - The acquisition of ANB resulted in actual revenue of $4.365 million and net income of $2.208 million for the three months ended September 30, 2025, with pro forma revenue of $275.888 million and net income of $93.064 million if the acquisition had occurred on January 1, 2024[32]. Capital and Equity - As of September 30, 2025, the CET1 capital ratio was 13.44%, well above the minimum requirement of 4.5% for well-capitalized institutions[138]. - Total capital as of September 30, 2025, was $3,073,175,000, compared to $2,982,273,000 on December 31, 2024, representing an increase of 3.0%[138]. - The company redeemed all outstanding shares of its 6.875% Series I non-cumulative perpetual preferred stock on September 15, 2025, for a cash payment of $91.5 million[140]. Loan Portfolio and Performance - The total loan portfolio increased to $19.175 billion as of September 30, 2025, up from $18.176 billion at December 31, 2024, representing a growth of approximately 5.5%[56]. - The commercial loan segment constituted 75% of the total loan portfolio, with owner-occupied CRE at $3.68 billion (19%) and income-producing CRE at $4.53 billion (24%)[187]. - The total commercial loan portfolio reached $14.347 billion as of September 30, 2025, compared to $13.506 billion at December 31, 2024, reflecting an increase of approximately 6.2%[56]. - Mortgage loans originated totaled $282.66 million for the three months ended September 30, 2025, reflecting an 18% increase compared to the same period in 2024[170]. Noninterest Expenses - Noninterest expense for Q3 2025 was $151 million, reflecting a 5% increase compared to Q3 2024, primarily due to higher salaries and employee benefits[157]. - Total noninterest expense for the three months ended September 30, 2025, was $150.87 million, an increase of $7.80 million or 5% compared to the same period in 2024[179]. - Salaries and employee benefits increased by $7.13 million, totaling $90.67 million for the three months ended September 30, 2025, primarily due to merit increases and performance-related compensation[179]. Market and Economic Conditions - The federal funds rate cuts of 125 basis points beginning in September 2024 contributed to the improvement in net interest spread and margin[164]. - The interest sensitivity position indicates a 3.32% increase in net interest revenue under a 200 basis point shock scenario as of September 30, 2025[209].
United Community Banks, Inc.(UCB) - 2025 Q3 - Quarterly Report