United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q1 2025 Earnings Presentation
23 slides from United Community Banks's earnings presentation, Apr 22, 2025
Slide 1: 1Q25 Investor Presentation
1Q25 Investor Presentation April 22, 2025 © 2025 United Community Bank | ucbi.com
Slide 2: Disclosures
Disclosures CAUTIONARY STATEMENT This Investor Presentation 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 ide
Slide 3: United Community Banks, Inc. Company Overview
United Community Banks, Inc. Company Overview $27.9 $3.2 $18.4 BILLION IN BILLION IN 13.3% (1) BILLION IN TOTAL CET1 RBC TOTAL AUA ASSETS LOANS Regional Full-Service Branch Network National Navitas and SBA Markets $23.8 $0.24 200 BILLION IN QUARTERLY BANKING OFFICES TOTAL COMMON ACROSS THE DEPOSITS
Slide 4: 1Q25 Highlights
$0.58 Diluted earnings per share – GAAP $0.59 Diluted earnings per share – operating (1) 1Q25 Highlights 1.02% Return on assets – GAAP 1.01% Diluted Earnings Per Share Return on Average Assets 1.04% Return on Return assets on (1) – assets – operating (1) operating 1.06% 1.08% 1.02% 1.04% $0.61 $0.63
Slide 5: Outstanding Deposit Franchise
Outstanding Deposit Franchise 1Q25 Change in Customer Deposits $ in millions $5 Customer Deposit Growth $239 $23,602 Excluding brokered deposits and public funds, deposits $46 $14 $5 grew $395 million, or 7.8% annualized, from 4Q24 23,293 Customer deposits were up $309 million, or 5.4% annualized, f
Slide 6: Deposit Trends
Deposit Trends Total Deposit Mix Trend $ in billions Deposits are granular with ~$34,000 average account size $23.3 $23.0 $23.3 $23.5 $23.8 and are diverse by industry and geography $6.4 $6.3 $6.2 $6.2 $6.3 Business deposits of $8.7 billion and personal deposits of $11.6 billion in 1Q25 The remainin
Slide 7: Stronger Targeted Loan Growth
Stronger Targeted Loan Growth 1Q25 Loan Portfolio Growth $ in millions % QoQ annualized $34 Quarter Highlights $55 $18 $60 ($17) $18,425 Loan growth of 5.6% annualized, primarily driven $99 by C&I, equipment finance, and HELOC $18,176 Senior Care portfolio down $23 million, or 8%, from 4Q24 +7% +15%
Slide 8: Balance Sheet Strength – Liquidity and Capital
Balance Sheet Strength – Liquidity and Capital Loans / Core Deposits % Substantial balance sheet liquidity and above-peer capital ratios 92% $6.7 billion securities portfolio offers significant near- and medium-term cash flow opportunities No outstanding wholesale borrowings at the end of 1Q25 0.7%
Slide 9: Above-Peer Capital Ratios
Above-Peer Capital Ratios Risk-Based Capital Ratios 1Q25 regulatory risk-based capital ratios remained strong and above peers 14.6% 15.1% 15.3% 15.1% 14.6% 15.1% The leverage ratio increased 19 bps to 1.8% 1.8% 1.5% 1.4% 10.15%, as compared to 4Q24 1.8% 0.5% 0.5% 1.8% 0.4% 0.5% 0.4% 0.6% Quarterly c
Slide 10: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin Net Interest Revenue & Net Interest Margin $ in millions Net interest revenue increased $1.7 million, or 3.2% annualized, from $210.3 $212.0 4Q24 4.00% $199.1 Core net interest margin, excluding purchase loan accretion, was up $ 200.0 12 bps to 3.31%, primarily due
Slide 11: Noninterest Income - Operating
Noninterest Income - Operating $40.5 $ in millions Linked Quarter $37.2 $36.6 On an operating basis, noninterest income decreased $4.8 $35.7 $35.3 million from 4Q24 Service charges decreased $1.1 million, primarily due $13.9 to seasonally lower interchange and overdraft fees $12.6 $11.5 Mortgage fee
Slide 12: Noninterest Expense
Noninterest Expense Efficiency Ratio 1Q25 operating efficiency ratio of 56.2%, down 293 basis 65.5% points year-over-year Compensation expense improved both quarter-over- 60.5% quarter and year-over-year 59.7% 58.1% Headcount of 3,006 down 3% from 1Q24 59.2% 56.7% Operating efficiency ratio has been
Slide 13: Credit Quality
Credit Quality Net Charge-Offs as % of Average Loans 1Q25 net charge-offs of $9.6 million, or 0.21% of loans annualized Nonperforming assets improved $22.3 million during the quarter and were 0.52% 0.51% of total loans, down 13 bps from 4Q24, due to a variety of successful resolutions, the largest o
Slide 14: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk-Forward $ in thousands Provision of $15.4 million, up from $11.4 $ 12,012 million in 4Q24, due to higher model $ 836 $ 4,706 reserve driven by economic forecast with ($ 2,600 ) $223,201 higher unemployment $217,389 $ 465 Allowance co
Slide 15: Exhibits
1Q25 INVESTOR PRESENTATION Exhibits
Slide 16: Cultural Foundations of United Community
Cultural Foundations of United Community Our Story Founded 75 years ago as Union County Bank, United Community has stayed true to its roots by prioritizing service. We continue to embrace our small-town, personal touch while offering a comprehensive range of personal and business banking services. O
Slide 17: Average Deposit Costs
Average Deposit Costs 1Q24 2Q24 3Q24 4Q24 1Q25 $ in billions; rates annualized Average Average Average Average Average Average Average Average Average Average Balance Rate Balance Rate Balance Rate Balance Rate Balance Rate DDA $6.4 N/A $6.3 N/A $6.2 N/A $6.3 N/A $6.2 N/A NOW $6.1 3.06% $5.9 3.01% $
Slide 18: Navitas Performance
Navitas Performance Navitas Portfolio $ in millions Navitas represents 9% of total loans 9.70% 9.68% 9.58% 9.64% Navitas ACL / Loans of 2.76% 9.25% 9.30% 9.43% 9.12% 8.99% Navitas 1Q25 NCOs of 1.20% annualized, or $5.0 million Of the $5.0 million of losses, $1.1 million came from $1,663 $1,722 the L
Slide 19: Mortgage Activity Trends
Mortgage Activity Trends Mortgage Locks & Sales $ in millions Rate locks were $330 million compared to $285 million in 3.0% $330 4Q24, driven primarily by benefit from lower mortgage rates 2.9% 3.0% $306 2.9% $295 2.8% $285 and seasonal momentum $260 79% of locked loans were fixed-rate mortgages, wh
Slide 20: Footprint Focused on High-Growth Southeast MSAs
Footprint Focused on High-Growth Southeast MSAs Top 10 MSAs - % of Total Deposits Fastest Growing UCBI's % ’25 – ’30 ’25 – ’30 Major Southeast of Total Proj. Pop. Proj. HHI. MSAs (1) Deposits Growth % Growth % Rome, GA 1) Jacksonville, FL 0.68% 8.26 11.51 Myrtle Beach, SC 2) Raleigh, NC 3.80% 7.36 1
Slide 21: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Noninterest Income Noninterest income - GAAP $ 39,587 $ 36,556 $ 8,091 $ 40,522 $ 35,656 Loss on sale of manufactured housing loans - - 27,209 - - Gain on lease termination (2,400) - - - - Noninterest incom
Slide 22: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q24 2Q24 3Q24 4Q24 1Q25 Return on Assets Return on assets - GAAP 0.90 % 0.97 % 0.67 % 1.06 % 1.02 % Loss on sale of manufactured housing loans - - 0.31 - - Merger-related and other charges 0.03 0.01 0.03 0.02 0.02 FDIC special ass
Slide 23: Glossary
Glossary ACL – Allowance for Credit Losses MLO – Mortgage Loan Office ALLL – Allowance for Loan Losses MMDA – Money Market Deposit Account AOCI – Accumulated Other Comprehensive Income (Loss) MTM – Marked-to-Market AUA – Assets Under Administration MSA – Metropolitan Statistical Area BPS – Basis Poi
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