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     169  0 Kommentare United Community Banks, Inc. Reports Third Quarter Results

    Strengthened Customer Deposit Base with 5.6% Annualized Growth; Loan Growth of 5.4% Annualized

    GREENVILLE, S.C., Oct. 18, 2023 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced net income for the third quarter of $47.9 million and pre-tax, pre-provision income of $90.1 million. Diluted earnings per share of $0.39 for the quarter represented a decrease of $0.14 or 26% from the second quarter of 2023 and a decrease of $0.35 or 47%, from the third quarter of 2022. On an operating basis, excluding merger-related and other charges, diluted earnings per share of $0.45 decreased $0.10 or 18% compared to last quarter. Customer deposits organically grew by 5.6% annualized and loans grew at a 5.4% annualized rate during the quarter. Net interest revenue increased $2.3 million as the addition of First National Bank of South Miami ("FNBSM") was partly offset by a contraction in the net interest margin, driven by continued deposit pricing competition. Noninterest income was down $4.4 million primarily due to the absence of the unusual second quarter gain on the sale of an insurance subsidiary and a one-time small business partnership investment gain. Noninterest expenses increased mainly due to closing the FNBSM acquisition.

    For the quarter, United’s return on assets was 0.68%, or 0.79% on an operating basis. Return on common equity was 5.3% and return on tangible common equity was 9.0%. On a pre-tax, pre-provision basis, operating return on assets was 1.44% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.18%, down three basis points from the second quarter of 2023.

    Chairman and CEO Lynn Harton stated, “We continue to be pleased with the strength of our customer deposit franchise, driven by our service model. In the third quarter our customer deposits grew by 5.6% annualized, allowing us to decrease high cost brokered deposits and fund solid loan growth within our stated target range of mid-to-high single digits. Our cost of deposits continued to increase, leading to a modest decline in our net interest margin for the quarter. Increases in credit costs are concentrated in specific sectors that are under stress or specific companies that have been poorly managed. This is not unexpected given the speed at which borrowing rates have increased. We continue to expect broader credit performance to remain strong, but are appropriately cautious in our portfolio management given the potential for ongoing changes in the economic environment.”

    United’s net interest margin decreased by 13 basis points to 3.24% compared to the second quarter. The average yield on United’s interest-earning assets was up 20 basis points to 5.17%, but its cost of deposits increased by 39 basis points to 2.03%, leading to the reduction in the net interest margin. Net charge-offs were $26.6 million or 0.59% of average loans during the quarter, up 39 basis points compared to the second quarter of 2023, largely due to the $19 million charge-off from an 8.7% participation in a large, nationally syndicated credit disclosed during the quarter. NPAs were 34 basis points relative to total assets, down six basis points from the previous quarter.

    Mr. Harton concluded, “We continue to focus on our key mission of building our communities by serving our customers. Our teams are executing on that promise across our footprint, which we believe is one of the strongest in the Southeast. We have been fortunate to attract new teams, adding both new talent and additional exposure to high-growth metropolitan markets within our franchise. This quarter, we are very glad to welcome FNBSM officially into the United team, boosting our growth opportunities in Miami. FNBSM brings a very talented team and we look forward to growing together.”

    Third Quarter 2023 Financial Highlights:

    • Net income of $47.9 million and pre-tax, pre-provision income of $90.1 million
    • EPS decreased by 47% compared to last year on a GAAP basis and 40% on an operating basis; compared to second quarter 2023, EPS decreased 26% on a GAAP basis and decreased 18% on an operating basis
    • Return on assets of 0.68%, or 0.79% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.31%, or 1.44% when excluding merger-related and other charges
    • Return on common equity of 5.3%
    • Return on tangible common equity of 9.0% on an operating basis
    • Loan production, excluding balances acquired from FNBSM, of $1.5 billion, resulting in organic loan growth of 5.4% annualized for the quarter
    • Customer deposits, excluding brokered deposits, acquired FNBSM balances, and those from the sale of two Tennessee branches that were sold during the quarter were up $314 million or 5.6% annualized from last quarter
    • Net interest margin of 3.24% was down 13 basis points from the second quarter due to increased deposit costs
    • Mortgage closings of $211 million compared to $317 million a year ago; mortgage rate locks of $304 million compared to $456 million a year ago
    • Noninterest income was down $4.4 million primarily due to the absence of unusual second quarter gain on the sale of an insurance subsidiary and a one-time small business partnership investment gain
    • Noninterest expenses increased $12.1 million compared to the second quarter on a GAAP basis and by $6.5 million on an operating basis, mostly due to increases in salaries and employee benefits expenses, occupancy, amortization of intangibles and higher merger-related and other charges related to closing the FNBSM acquisition
    • Efficiency ratio of 61.3%, or 57.4% on an operating basis, up from second quarter largely driven by net interest margin pressure
    • Net charge-offs of $26.6 million, or 59 basis points as a percent of average loans, up 39 basis points from the net charge-offs level experienced in the second quarter and mostly due to the $19 million charge-off from an 8.7% participation in a large, nationally syndicated credit disclosed during the quarter
    • Nonperforming assets of 0.34% of total assets, down six basis points compared to June 30, 2023
    • Quarterly common shareholder dividend of $0.23 per share declared during the quarter, an increase of 5% year-over-year

    Conference Call

    United will hold a conference call on Wednesday, October 18, 2023, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10183036/fa91904ab0. Those without internet access or who are unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and available for replay by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of United’s website at ucbi.com.

    UNITED COMMUNITY BANKS, INC.                                    
    Selected Financial Information                                    
    (in thousands, except per share data)                                    
          2023       2022     Third 
    Quarter
    2023-
      For the Nine Months
    Ended September 30,
      YTD 
    2023-
        Third
    Quarter
      Second 
    Quarter
      First
    Quarter
      Fourth 
    Quarter
      Third
    Quarter
      2022
    Change
        2023       2022     2022 
    Change
    INCOME SUMMARY                                    
    Interest revenue   $ 323,147     $ 295,775     $ 279,487     $ 240,831     $ 213,887         $ 898,409     $ 572,324      
    Interest expense     120,591       95,489       68,017       30,943       14,113           284,097       29,855      
    Net interest revenue     202,556       200,286       211,470       209,888       199,774     1 %     614,312       542,469     13 %
    Provision for credit losses     30,268       22,753       21,783       19,831       15,392           74,804       44,082      
    Noninterest income     31,977       36,387       30,209       33,354       31,922           98,573       104,353     (6 )
    Total revenue     204,265       213,920       219,896       223,411       216,304     (6 )     638,081       602,740     6  
    Noninterest expenses     144,474       132,407       139,805       117,329       112,755     28       416,686       352,820     18  
    Income before income tax expense     59,791       81,513       80,091       106,082       103,549     (42 )     221,395       249,920     (11 )
    Income tax expense     11,925       18,225       17,791       24,632       22,388     (47 )     47,941       53,898     (11 )
    Net income     47,866       63,288       62,300       81,450       81,161     (41 )     173,454       196,022     (12 )
    Merger-related and other charges     9,168       3,645       8,631       1,470       1,746           21,444       17,905      
    Income tax benefit of merger-related and other charges     (2,000 )     (820 )     (1,955 )     (323 )     (385 )         (4,775 )     (3,923 )    
    Net income - operating (1)   $         55,034     $         66,113     $         68,976     $         82,597     $         82,522             (33 )   $         190,123     $         210,004             (9 )
    Pre-tax pre-provision income(5)   $ 90,059     $ 104,266     $ 101,874     $ 125,913     $ 118,941     (24 )   $ 296,199     $ 294,002     1  
    PERFORMANCE MEASURES                                    
    Per common share:                                    
    Diluted net income - GAAP   $ 0.39     $ 0.53     $ 0.52     $ 0.74     $ 0.74     (47 )   $ 1.44     $ 1.78     (19 )
    Diluted net income - operating(1)     0.45       0.55       0.58       0.75       0.75     (40 )     1.58       1.91     (17 )
    Cash dividends declared     0.23       0.23       0.23       0.22       0.22     5       0.69       0.64     8  
    Book value     25.87       25.98       25.76       24.38       23.78     9       25.87       23.78     9  
    Tangible book value(3)     17.70       17.83       17.59       17.13       16.52     7       17.70       16.52     7  
    Key performance ratios:                                    
    Return on common equity - GAAP(2)(4)     5.32 %     7.47 %     7.34 %     10.86 %     11.02 %         6.69 %     9.08 %    
    Return on common equity - operating(1)(2)(4)     6.14       7.82       8.15       11.01       11.21           7.35       9.75      
    Return on tangible common equity - operating(1)(2)(3)(4)     9.03       11.35       11.63       15.20       15.60           10.65       13.64      
    Return on assets - GAAP(4)     0.68       0.95       0.95       1.33       1.32           0.86       1.06      
    Return on assets - operating(1)(4)     0.79       1.00       1.06       1.35       1.34           0.95       1.13      
    Return on assets - pre-tax pre-provision(4)(5)     1.31       1.59       1.58       2.07       1.94           1.49       1.60      
    Return on assets - pre-tax pre-provision, excluding merger- related and other charges(1)(4)(5)     1.44       1.65       1.71       2.09       1.97           1.60       1.70      
    Net interest margin (fully taxable equivalent)(4)     3.24       3.37       3.61       3.76       3.57           3.41       3.25      
    Efficiency ratio - GAAP     61.32       55.71       57.20       47.95       48.41           58.06       53.94      
    Efficiency ratio - operating(1)     57.43       54.17       53.67       47.35       47.66           55.07       51.20      
    Equity to total assets     11.85       11.89       11.90       11.25       11.12           11.85       11.12      
    Tangible common equity to tangible assets(3)     8.18       8.21       8.17       7.88       7.70           8.18       7.70      
    ASSET QUALITY                                    
    Nonperforming assets ("NPAs")   $ 90,883     $ 103,737     $ 73,403     $ 44,281     $ 35,511     156     $ 90,883     $ 35,511     156  
    Allowance for credit losses - loans     201,557       190,705       176,534       159,357       148,502     36       201,557       148,502     36  
    Allowance for credit losses - total     219,624       212,277       197,923       180,520       167,300     31       219,624       167,300     31  
    Net charge-offs (recoveries)     26,638       8,399       7,084       6,611       1,134           42,121       3,043      
    Allowance for credit losses - loans to loans     1.11 %     1.10 %     1.03 %     1.04 %     1.00 %         1.11 %     1.00 %    
    Allowance for credit losses - total to loans     1.21       1.22       1.16       1.18       1.12           1.21       1.12      
    Net charge-offs to average loans(4)     0.59       0.20       0.17       0.17       0.03           0.32       0.03      
    NPAs to total assets     0.34       0.40       0.28       0.18       0.15           0.34       0.15      
    AT PERIOD END ($ in millions)                                    
    Loans   $ 18,203     $ 17,395     $ 17,125     $ 15,335     $ 14,882     22     $ 18,203     $ 14,882     22  
    Investment securities     5,701       5,914       5,915       6,228       6,539     (13 )     5,701       6,539     (13 )
    Total assets     26,869       26,120       25,872       24,009       23,688     13       26,869       23,688     13  
    Deposits     22,858       22,252       22,005       19,877       20,321     12       22,858       20,321     12  
    Shareholders’ equity     3,184       3,106       3,078       2,701       2,635     21       3,184       2,635     21  
    Common shares outstanding (thousands)     118,976       115,266       115,152       106,223       106,163     12       118,976       106,163     12  

    (1) Excludes merger-related and other charges. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.

    UNITED COMMUNITY BANKS, INC.                            
    Non-GAAP Performance Measures Reconciliation
    Selected Financial Information                            
    (in thousands, except per share data)                            
          2023       2022     For the Nine Months Ended
    September 30,
        Third
    Quarter
      Second
    Quarter
      First
    Quarter
      Fourth
    Quarter
      Third
    Quarter
        2023       2022  
                                 
    Noninterest expense reconciliation                            
    Noninterest expenses (GAAP)   $ 144,474     $ 132,407     $ 139,805     $ 117,329     $ 112,755     $ 416,686     $ 352,820  
    Merger-related and other charges     (9,168 )     (3,645 )     (8,631 )     (1,470 )     (1,746 )     (21,444 )     (17,905 )
    Noninterest expenses - operating   $ 135,306     $ 128,762     $ 131,174     $ 115,859     $ 111,009     $ 395,242     $ 334,915  
                                 
    Net income reconciliation                            
    Net income (GAAP)   $ 47,866     $ 63,288     $ 62,300     $ 81,450     $ 81,161     $ 173,454     $ 196,022  
    Merger-related and other charges     9,168       3,645       8,631       1,470       1,746       21,444       17,905  
    Income tax benefit of merger-related and other charges     (2,000 )     (820 )     (1,955 )     (323 )     (385 )     (4,775 )     (3,923 )
    Net income - operating   $ 55,034     $ 66,113     $ 68,976     $ 82,597     $ 82,522     $ 190,123     $ 210,004  
                                 
    Net income to pre-tax pre-provision income reconciliation                            
    Net income (GAAP)   $ 47,866     $ 63,288     $ 62,300     $ 81,450     $ 81,161     $ 173,454     $ 196,022  
    Income tax expense     11,925       18,225       17,791       24,632       22,388       47,941       53,898  
    Provision for credit losses     30,268       22,753       21,783       19,831       15,392       74,804       44,082  
    Pre-tax pre-provision income   $ 90,059     $ 104,266     $ 101,874     $ 125,913     $ 118,941     $ 296,199     $ 294,002  
                                 
    Diluted income per common share reconciliation                            
    Diluted income per common share (GAAP)   $ 0.39     $ 0.53     $ 0.52     $ 0.74     $ 0.74     $ 1.44     $ 1.78  
    Merger-related and other charges, net of tax     0.06       0.02       0.06       0.01       0.01       0.14       0.13  
    Diluted income per common share - operating   $ 0.45     $ 0.55     $ 0.58     $ 0.75     $ 0.75     $ 1.58     $ 1.91  
                                 
    Book value per common share reconciliation                            
    Book value per common share (GAAP)   $ 25.87     $ 25.98     $ 25.76     $ 24.38     $ 23.78     $ 25.87     $ 23.78  
    Effect of goodwill and other intangibles     (8.17 )     (8.15 )     (8.17 )     (7.25 )     (7.26 )     (8.17 )     (7.26 )
    Tangible book value per common share   $ 17.70     $ 17.83     $ 17.59     $ 17.13     $ 16.52     $ 17.70     $ 16.52  
                                 
    Return on tangible common equity reconciliation                            
    Return on common equity (GAAP)     5.32 %     7.47 %     7.34 %     10.86 %     11.02 %     6.69 %     9.08 %
    Merger-related and other charges, net of tax     0.82       0.35       0.81       0.15       0.19       0.66       0.67  
    Return on common equity - operating     6.14       7.82       8.15       11.01       11.21       7.35       9.75  
    Effect of goodwill and other intangibles     2.89       3.53       3.48       4.19       4.39       3.30       3.89  
    Return on tangible common equity - operating     9.03 %     11.35 %     11.63 %     15.20 %     15.60 %     10.65 %     13.64 %
                                 
    Return on assets reconciliation                            
    Return on assets (GAAP)     0.68 %     0.95 %     0.95 %     1.33 %     1.32 %     0.86 %     1.06 %
    Merger-related and other charges, net of tax     0.11       0.05       0.11       0.02       0.02       0.09       0.07  
    Return on assets - operating     0.79 %     1.00 %     1.06 %     1.35 %     1.34 %     0.95 %     1.13 %
                                 
    Return on assets to return on assets- pre-tax pre-provision reconciliation                            
    Return on assets (GAAP)     0.68 %     0.95 %     0.95 %     1.33 %     1.32 %     0.86 %     1.06 %
    Income tax expense     0.18       0.29       0.29       0.41       0.37       0.25       0.30  
    Provision for credit losses     0.45       0.35       0.34       0.33       0.25       0.38       0.24  
    Return on assets - pre-tax, pre-provision     1.31       1.59       1.58       2.07       1.94       1.49       1.60  
    Merger-related and other charges     0.13       0.06       0.13       0.02       0.03       0.11       0.10  
    Return on assets - pre-tax pre-provision, excluding merger-related and other charges     1.44 %     1.65 %     1.71 %     2.09 %     1.97 %     1.60 %     1.70 %
                                 
    Efficiency ratio reconciliation                            
    Efficiency ratio (GAAP)     61.32 %     55.71 %     57.20 %     47.95 %     48.41 %     58.06 %     53.94 %
    Merger-related and other charges     (3.89 )     (1.54 )     (3.53 )     (0.60 )     (0.75 )     (2.99 )     (2.74 )
    Efficiency ratio - operating     57.43 %     54.17 %     53.67 %     47.35 %     47.66 %     55.07 %     51.20 %
                                 
    Tangible common equity to tangible assets reconciliation                            
    Equity to total assets (GAAP)     11.85 %     11.89 %     11.90 %     11.25 %     11.12 %     11.85 %     11.12 %
    Effect of goodwill and other intangibles     (3.33 )     (3.31 )     (3.36 )     (2.97 )     (3.01 )     (3.33 )     (3.01 )
    Effect of preferred equity     (0.34 )     (0.37 )     (0.37 )     (0.40 )     (0.41 )     (0.34 )     (0.41 )
    Tangible common equity to tangible assets     8.18 %     8.21 %     8.17 %     7.88 %     7.70 %     8.18 %     7.70 %
                                 


    UNITED COMMUNITY BANKS, INC.                        
    Financial Highlights                        
    Loan Portfolio Composition at Period-End                        
        2023     2022   Linked 
      Year over 
    (in millions) Third 
    Quarter
      Second 
    Quarter
      First 
    Quarter
      Fourth 
    Quarter
      Third 
    Quarter
      Quarter
    Change 
      Year
    Change 
    LOANS BY CATEGORY                          
    Owner occupied commercial RE $ 3,279   $ 3,111   $ 3,141   $ 2,735   $ 2,700   $ 168     $ 579  
    Income producing commercial RE   4,130     3,670     3,611     3,262     3,299     460       831  
    Commercial & industrial   2,504     2,550     2,442     2,252     2,238     (46 )     266  
    Commercial construction   1,850     1,739     1,806     1,598     1,514     111       336  
    Equipment financing   1,534     1,510     1,447     1,374     1,281     24       253  
    Total commercial   13,297     12,580     12,447     11,221     11,032     717       2,265  
    Residential mortgage   3,043     2,905     2,756     2,355     2,149     138       894  
    Home equity lines of credit   941     927     930     850     832     14       109  
    Residential construction   399     463     492     443     423     (64 )     (24 )
    Manufactured housing   343     340     326     317     301     3       42  
    Consumer   180     180     174     149     145           35  
    Total loans $ 18,203   $ 17,395   $ 17,125   $ 15,335   $ 14,882   $ 808     $ 3,321  
                               
    LOANS BY MARKET                          
    Georgia $ 4,321   $ 4,281   $ 4,177   $ 4,051   $ 4,003   $ 40     $ 318  
    South Carolina   2,801     2,750     2,672     2,587     2,516     51       285  
    North Carolina   2,445     2,355     2,257     2,186     2,117     90       328  
    Tennessee   2,314     2,387     2,458     2,507     2,536     (73 )     (222 )
    Florida   2,318     1,708     1,745     1,308     1,259     610       1,059  
    Alabama   1,070     1,062     1,029             8       1,070  
    Commercial Banking Solutions   2,934     2,852     2,787     2,696     2,451     82       483  
    Total loans $ 18,203   $ 17,395   $ 17,125   $ 15,335   $ 14,882   $ 808     $ 3,321  


    UNITED COMMUNITY BANKS, INC.                        
    Financial Highlights                        
    Credit Quality                        
    (in thousands)                        
          2023            
        Third
    Quarter
      Second
    Quarter
      First
    Quarter
               
    NONACCRUAL LOANS                        
    Owner occupied RE   $ 5,134   $ 3,471   $ 1,000            
    Income producing RE     30,255     32,542     10,603            
    Commercial & industrial     13,382     30,823     33,276            
    Commercial construction     1,065     115     475            
    Equipment financing     9,206     8,989     5,044            
    Total commercial     59,042     75,940     50,398            
    Residential mortgage     11,893     11,419     11,280            
    Home equity lines of credit     4,009     2,777     2,377            
    Residential construction     2,074     1,682     143            
    Manufactured housing     12,711     10,782     8,542            
    Consumer     89     19     55            
    Total nonaccrual loans     89,818     102,619     72,795            
    OREO and repossessed assets     1,065     1,118     608            
    Total NPAs   $ 90,883   $ 103,737   $ 73,403            


          2023  
        Third 
    Quarter
      Second 
    Quarter
      First 
    Quarter
    (in thousands)   Net Charge-
    Offs
      Net Charge-
    Offs to
    Average
    Loans
    (1)
      Net Charge-
    Offs
      Net Charge-
    Offs to
    Average
    Loans
    (1)
      Net Charge-
    Offs
      Net Charge-
    Offs to
    Average
    Loans
    (1)
    NET CHARGE-OFFS (RECOVERIES) BY CATEGORY                        
    Owner occupied RE   $ 582     0.07 %   $ (205 )   (0.03)%   $ 90     0.01 %
    Income producing RE     3,011     0.30       1,184     0.13       2,306     0.26  
    Commercial & industrial     17,542     2.71       2,746     0.44       225     0.04  
    Commercial construction     (49 )   (0.01 )     (105 )   (0.02 )     (37 )   (0.01 )
    Equipment financing     6,325     1.62       2,537     0.69       3,375     0.93  
    Total commercial     27,411     0.83       6,157     0.20       5,959     0.20  
    Residential mortgage     (129 )   (0.02 )     (43 )   (0.01 )     (87 )   (0.01 )
    Home equity lines of credit     (2,784 )   (1.17 )     (59 )   (0.03 )     33     0.01  
    Residential construction     341     0.31       623     0.53       (15 )   (0.01 )
    Manufactured housing     1,168     1.34       620     0.75       628     0.76  
    Consumer     631     1.37       1,101     2.51       566     1.37  
    Total   $ 26,638     0.59     $ 8,399     0.20     $ 7,084     0.17  
                             
    (1)Annualized.                        


    UNITED COMMUNITY BANKS, INC.
    Consolidated Balance Sheets (Unaudited)


    (in thousands, except share and per share data)   September 30,
    2023
      December 31,
    2022
    ASSETS        
    Cash and due from banks   $ 192,726     $ 195,771  
    Interest-bearing deposits in banks     566,779       316,082  
    Federal funds and other short-term investments           135,000  
    Cash and cash equivalents     759,505       646,853  
    Debt securities available-for-sale     3,182,112       3,614,333  
    Debt securities held-to-maturity (fair value $1,992,364 and $2,191,073, respectively)     2,518,773       2,613,648  
    Loans held for sale     37,110       13,600  
    Loans and leases held for investment     18,202,807       15,334,627  
    Less allowance for credit losses - loans and leases     (201,557 )     (159,357 )
    Loans and leases, net     18,001,250       15,175,270  
    Premises and equipment, net     371,435       298,456  
    Bank owned life insurance     344,647       299,297  
    Goodwill and other intangible assets, net     994,142       779,248  
    Other assets     660,233       568,179  
    Total assets   $ 26,869,207     $ 24,008,884  
    LIABILITIES AND SHAREHOLDERS' EQUITY        
    Liabilities:        
    Deposits:        
    Noninterest-bearing demand   $ 6,782,031     $ 7,643,081  
    NOW and interest-bearing demand     5,349,335       4,350,878  
    Money market     5,691,480       4,510,680  
    Savings     1,265,548       1,456,337  
    Time     3,554,619       1,781,482  
    Brokered     214,855       134,049  
    Total deposits     22,857,868       19,876,507  
    Short-term borrowings     37,348       158,933  
    Federal Home Loan Bank advances           550,000  
    Long-term debt     324,786       324,663  
    Accrued expenses and other liabilities     465,381       398,107  
    Total liabilities     23,685,383       21,308,210  
    Shareholders' equity:        
    Preferred stock; $1 par value; 10,000,000 shares authorized; 3,745 and 4,000 shares Series I issued and
    outstanding, respectively, $25,000 per share liquidation preference
        90,283       96,422  
    Common stock, $1 par value; 200,000,000 shares authorized,
    118,975,652 and 106,222,758 shares issued and outstanding, respectively
        118,976       106,223  
    Common stock issuable; 608,646 and 607,128 shares, respectively     12,782       12,307  
    Capital surplus     2,697,671       2,306,366  
    Retained earnings     596,617       508,844  
    Accumulated other comprehensive loss     (332,505 )     (329,488 )
    Total shareholders' equity     3,183,824       2,700,674  
    Total liabilities and shareholders' equity   $ 26,869,207     $ 24,008,884  


    UNITED COMMUNITY BANKS, INC.
    Consolidated Statements of Income (Unaudited)


        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except per share data)     2023     2022     2023       2022  
    Interest revenue:                
    Loans, including fees   $ 273,781   $ 174,065   $ 760,696     $ 476,072  
    Investment securities, including tax exempt of $1,722, $2,568, $5,563 and $7,762, respectively     44,729     36,953     125,775       91,043  
    Deposits in banks and short-term investments     4,637     2,869     11,938       5,209  
    Total interest revenue     323,147     213,887     898,409       572,324  
                     
    Interest expense:                
    Deposits:                
    NOW and interest-bearing demand     35,613     3,992     80,809       7,624  
    Money market     46,884     4,503     105,430       7,030  
    Savings     868     178     2,108       337  
    Time     33,368     1,207     75,464       2,322  
    Deposits     116,733     9,880     263,811       17,313  
    Short-term borrowings     189     27     3,186       27  
    Federal Home Loan Bank advances             5,761        
    Long-term debt     3,669     4,206     11,339       12,515  
    Total interest expense     120,591     14,113     284,097       29,855  
    Net interest revenue     202,556     199,774     614,312       542,469  
    Provision for credit losses     30,268     15,392     74,804       44,082  
    Net interest revenue after provision for credit losses     172,288     184,382     539,508       498,387  
                     
    Noninterest income:                
    Service charges and fees     10,315     9,569     28,791       28,644  
    Mortgage loan gains and other related fees     6,159     6,297     17,264       29,420  
    Wealth management fees     6,451     5,879     17,775       17,759  
    Gains from sales of other loans, net     2,688     2,228     6,909       9,226  
    Lending and loan servicing fees     2,985     2,946     9,979       7,518  
    Securities losses, net             (1,644 )     (3,688 )
    Other     3,379     5,003     19,499       15,474  
    Total noninterest income     31,977     31,922     98,573       104,353  
    Total revenue     204,265     216,304     638,081       602,740  
                     
    Noninterest expenses:                
    Salaries and employee benefits     81,173     67,823     236,121       208,062  
    Communications and equipment     10,902     8,795     31,654       27,718  
    Occupancy     10,941     9,138     31,024       27,381  
    Advertising and public relations     2,251     2,544     6,914       6,332  
    Postage, printing and supplies     2,386     2,190     7,305       6,308  
    Professional fees     7,006     4,821     19,670       14,670  
    Lending and loan servicing expense     2,697     2,333     7,546       7,746  
    Outside services - electronic banking     2,561     3,159     8,646       8,629  
    FDIC assessments and other regulatory charges     4,314     2,356     12,457       6,796  
    Amortization of intangibles     4,171     1,678     11,120       5,207  
    Merger-related and other charges     9,168     1,746     21,444       17,905  
    Other     6,904     6,172     22,785       16,066  
    Total noninterest expenses     144,474     112,755     416,686       352,820  
    Income before income taxes     59,791     103,549     221,395       249,920  
    Income tax expense     11,925     22,388     47,941       53,898  
    Net income     47,866     81,161     173,454       196,022  
    Preferred stock dividends, net of discount on repurchases     832     1,719     4,270       5,157  
    Earnings allocated to participating securities     259     407     939       1,007  
    Net income available to common shareholders   $ 46,775   $ 79,035   $ 168,245     $ 189,858  
                     
    Net income per common share:                
    Basic   $ 0.39   $ 0.74   $ 1.44     $ 1.78  
    Diluted     0.39     0.74     1.44       1.78  
    Weighted average common shares outstanding:                
    Basic     119,506     106,687     116,925       106,616  
    Diluted     119,624     106,800     117,084       106,732  


    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Three Months Ended September 30,


          2023       2022  
    (dollars in thousands, fully taxable equivalent (FTE))   Average
    Balance
      Interest   Average
    Rate
      Average
    Balance
      Interest   Average
    Rate
    Assets:                        
    Interest-earning assets:                        
    Loans, net of unearned income (FTE)(1)(2)   $ 18,055,402     $ 273,800   6.02 %   $ 14,658,397     $ 174,168   4.71 %
    Taxable securities(3)     5,933,708       43,007   2.90       6,539,615       34,385   2.10  
    Tax-exempt securities (FTE)(1)(3)     368,148       2,313   2.51       493,115       3,449   2.80  
    Federal funds sold and other interest-earning assets     538,039       5,093   3.76       614,755       3,106   2.00  
    Total interest-earning assets (FTE)     24,895,297       324,213   5.17       22,305,882       215,108   3.83  
                             
    Noninterest-earning assets:                        
    Allowance for credit losses     (209,472 )             (138,907 )        
    Cash and due from banks     225,831               231,376          
    Premises and equipment     367,217               290,768          
    Other assets(3)     1,568,824               1,261,236          
    Total assets   $ 26,847,697             $ 23,950,355          
                             
    Liabilities and Shareholders' Equity:                        
    Interest-bearing liabilities:                        
    Interest-bearing deposits:                        
    NOW and interest-bearing demand   $ 5,285,513       35,613   2.67     $ 4,335,619       3,992   0.37  
    Money market     5,622,355       46,884   3.31       4,849,705       4,503   0.37  
    Savings     1,301,047       868   0.26       1,515,350       178   0.05  
    Time     3,473,191       31,072   3.55       1,635,580       984   0.24  
    Brokered time deposits     209,119       2,296   4.36       51,530       223   1.72  
    Total interest-bearing deposits     15,891,225       116,733   2.91       12,387,784       9,880   0.32  
    Federal funds purchased and other borrowings     44,164       189   1.70       3,442       27   3.11  
    Long-term debt     324,770       3,669   4.48       324,444       4,206   5.14  
    Total borrowed funds     368,934       3,858   4.15       327,886       4,233   5.12  
    Total interest-bearing liabilities     16,260,159       120,591   2.94       12,715,670       14,113   0.44  
                             
    Noninterest-bearing liabilities:                        
    Noninterest-bearing deposits     6,916,272               8,176,987          
    Other liabilities     435,592               349,647          
    Total liabilities     23,612,023               21,242,304          
    Shareholders' equity     3,235,674               2,708,051          
    Total liabilities and shareholders' equity   $ 26,847,697             $ 23,950,355          
                             
    Net interest revenue (FTE)       $ 203,622           $ 200,995    
    Net interest-rate spread (FTE)           2.23 %           3.39 %
    Net interest margin (FTE)(4)           3.24 %           3.57 %

    (1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
    (2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
    (3) Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $430 million in 2023 and $318 million in 2022 are included in other assets for purposes of this presentation.
    (4) Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Nine Months Ended September 30,


          2023       2022  
    (dollars in thousands, fully taxable equivalent (FTE))   Average
    Balance
      Interest   Average
    Rate
      Average
    Balance
      Interest   Average
    Rate
    Assets:                        
    Interest-earning assets:                        
    Loans, net of unearned income (FTE)(1)(2)   $ 17,377,210     $ 760,802   5.85 %   $ 14,426,470     $ 475,989   4.41 %
    Taxable securities(3)     5,982,615       120,212   2.68       6,274,230       83,281   1.77  
    Tax-exempt securities (FTE)(1)(3)     386,499       7,470   2.58       498,177       10,425   2.79  
    Federal funds sold and other interest-earning assets     490,703       13,103   3.57       1,271,287       6,192   0.65  
    Total interest-earning assets (FTE)     24,237,027       901,587   4.97       22,470,164       575,887   3.43  
                             
    Non-interest-earning assets:                        
    Allowance for loan losses     (186,428 )             (129,278 )        
    Cash and due from banks     249,411               200,463          
    Premises and equipment     347,514               284,850          
    Other assets(3)     1,518,503               1,308,647          
    Total assets   $ 26,166,027             $ 24,134,846          
                             
    Liabilities and Shareholders' Equity:                        
    Interest-bearing liabilities:                        
    Interest-bearing deposits:                        
    NOW and interest-bearing demand   $ 4,891,214       80,809   2.21     $ 4,520,079       7,624   0.23  
    Money market     5,349,265       105,430   2.64       4,992,357       7,030   0.19  
    Savings     1,341,033       2,108   0.21       1,483,169       337   0.03  
    Time     2,936,873       65,856   3.00       1,688,250       2,009   0.16  
    Brokered time deposits     280,293       9,608   4.58       65,133       313   0.64  
    Total interest-bearing deposits     14,798,678       263,811   2.38       12,748,988       17,313   0.18  
    Federal funds purchased and other borrowings     98,884       3,186   4.31       1,383       27   2.61  
    Federal Home Loan Bank advances     166,355       5,761   4.63                
    Long-term debt     324,737       11,339   4.67       322,600       12,515   5.19  
    Total borrowed funds     589,976       20,286   4.60       323,983       12,542   5.18  
    Total interest-bearing liabilities     15,388,654       284,097   2.47       13,072,971       29,855   0.31  
                             
    Noninterest-bearing liabilities:                        
    Noninterest-bearing deposits     7,226,096               7,958,392          
    Other liabilities     393,048               375,182          
    Total liabilities     23,007,798               21,406,545          
    Shareholders' equity     3,158,229               2,728,301          
    Total liabilities and shareholders' equity   $ 26,166,027             $ 24,134,846          
                             
    Net interest revenue (FTE)       $ 617,490           $ 546,032    
    Net interest-rate spread (FTE)           2.50 %           3.12 %
    Net interest margin (FTE)(4)           3.41 %           3.25 %
                             

    (1) Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
    (2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
    (3) Unrealized gains and losses on securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $413 million in 2023 and $221 million in 2022 are included in other assets for purposes of this presentation.
    (4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

    About United Community Banks, Inc.
    United Community Banks, Inc. (NASDAQ: UCBI) is the financial holding company for United Community, a top 100 US financial institution that is committed to improving the financial health and well-being of its customers and ultimately the communities it serves. United Community provides a full range of banking, wealth management, and mortgage services. As of September 30, 2023, United Community has $26.9 billion in assets and 205 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment financing subsidiary. United Community has been recognized nationally as a leader in customer service, financial performance, and workplace environment. Among the accolades, United Community is a nine-time winner of the J.D. Power award that ranked the bank #1 in customer satisfaction with consumer banking in the Southeast and was recognized in 2023 by Forbes as one of the World’s Best Banks and one of America’s Best Banks. United Community was also recognized by Newsweek in 2023 as one of the Most Trusted Companies in America, is a multi-award recipient of the Greenwich Excellence Awards and was named by American Banker as one of the "Best Banks to Work For" in 2022 for the sixth consecutive year. Additional information about United Community can be found at ucbi.com.

    Non-GAAP Financial Measures

    This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax, pre-provision, excluding merger-related and other charges,” “return on assets - pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

    Caution About Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, and include statements related to potential benefits of the First National Bank of South Miami merger, and the strength of our pipelines and their ability to support business growth across our markets and our belief that our high-quality balance sheet and business mix will support strong performance regardless of future economic conditions. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements.

    Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the cost savings and any revenue synergies from the First National Bank of South Miami acquisition and other acquisitions may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of these acquisitions, (3) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to these acquisitions, (4) the risks relating to the integration of First National Bank of South Miami’s and other acquired banks’ operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (5) the risks associated with United’s pursuit of future acquisitions, (6) the risk associated with expansion into new geographic or product markets, and (7) general competitive, economic, political, regulatory and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2022, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

    Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.

    United qualifies all forward-looking statements by these cautionary statements.

    For more information:

    Jefferson Harralson
    Chief Financial Officer
    (864) 240-6208
    Jefferson_Harralson@ucbi.com 





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