United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q4 2023 Earnings Presentation
24 slides from United Community Banks's earnings presentation, Jan 24, 2024
Slide 1: 4Q23 Investor Presentation
4Q23 Investor Presentation January 24, 2024 Member FDIC. © 2024 United Community Bank | ucbi.com
Slide 2: Disclosures: Cautionary Statement
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: Disclosures: Non-GAAP Measures
Disclosures NON-GAAP MEASURES This Investor Presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures, which exclude merger-related and
Slide 4: United Community Banks, Inc. Company Overview
United Community Banks, Inc. Company Overview $27.3 $18.3 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full-Service Branch Network National Navitas and SBA Markets $5.6 $23.3 BILLION IN BILLION IN AUA TOTAL DEPOSITS AMERICA’S BEST BANKS 12.6% in 2023 for the ninth UCBI Banking Offices TIE
Slide 5: 4Q23 Highlights
$0.11 1.44% Diluted earnings per share – GAAP Return on common equity – GAAP 4Q23 Highlights $0.53 10.58% Diluted earnings per share – Return on tangible common operating(1) equity – operating(1) Diluted Earnings Per Share Return on Average Assets $0.74 $0.75 66.3% 1.33% 1.35% Efficiency ratio – $0.
Slide 6: Outstanding Deposit Franchise
Outstanding Deposit Franchise 4Q23 Total Deposits $23.3 billion Strong Customer Deposit Growth Time 16% ✓ Total deposits were up $453 million in 4Q23 from 28% DDA 3Q23, driven by seasonal increases in public funds Savings 5% and the addition of new public funds accounts ✓ Excluding Progress and FNBS
Slide 7: Deposit Trends
Deposit Trends 4Q23 Total Deposits $23.3 billion $ in billions ✓ Deposits are granular with a $35 thousand $0.8 $1.3 average account size and are diverse by industry and geography $22.3 $22.1 $23.3 ✓ Business deposits of $8.5 billion and $20.7 $19.9 personal deposits of $11.4 billion in 4Q23 • The r
Slide 8: Well-Diversified Loan Portfolio
Well-Diversified Loan Portfolio 4Q23 Total Loans $18.3 billion Quarter Highlights Residential Manufactured ✓ Loans increased $116 million, or 2.5% Construction Housing annualized Home Equity 2% 2% ✓ Construction and CRE ratios as a percentage of 5% total RBC were 75% and 214%, respectively ✓ Top 25
Slide 9: Balance Sheet Strength – Liquidity and Capital
Balance Sheet Strength – Liquidity and Capital Loans / Deposits % 86% ✓ Substantial balance sheet liquidity and above-peer capital ratios 78% 78% 80% 79% ✓ Customer deposit growth provided funding for loan 77% 73% growth and to pay down brokered funding 70% ✓ $5.8 billion securities portfolio offers
Slide 10: Capital
Capital Risk-Based Capital Ratios CET1 Non-common Tier 1 Tier 2 Total ✓ 4Q23 regulatory risk-based capital 14.6% 14.8% 14.4% 14.6% 14.5% 13.8% 14.5% ratios remained above peers and were 1.9% 2.0% 1.8% 1.9% 1.9% 1.7% 1.9% consistent with 3Q23 0.5% 0.5% 0.5% 0.5% 0.5% 0.4% 0.6% ✓ The leverage ratio de
Slide 11: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin $ in millions Net Interest Revenue & Net Interest Margin $209.9 ✓ Net interest revenue increased $897,000 from 3Q23 $202.6 $203.5 4.0 0% 3.76% $20 0.0 ✓ Net interest margin decreased 5 bps from 3Q23, primarily driven by increased deposit costs 3.74% $18 0.0 3.5 0% 3
Slide 12: Noninterest Income
Noninterest Income $ in millions Linked Quarter ✓ Noninterest income was down $55.1 million $36.4 to -$23.1 million, primarily due to the $51.7 $33.4 million loss resulting from the bond portfolio $32.0 restructuring transaction $30.2 $12.1 $28.6 • Excluding the bond portfolio restructuring $6.3 tra
Slide 13: Noninterest Expense
Noninterest Expense Efficiency Ratio % 66.3% ✓ The GAAP efficiency ratio increased compared 61.3% to last quarter 57.2% 57.02% 55.7% 57.4% 59.6% ✓ On an operating basis, the efficiency ratio 48.0% 53.7% 54.2% increased as increased group medical insurance 47.4% costs more than offset spread income g
Slide 14: Credit Quality
Credit Quality Net Charge-Offs as % of Average Loans 0.59% ✓ 4Q23 net charge-offs of $10.1 million, or 0.22% of average loans, annualized ✓ Non-performing assets increased $2.0 million during the quarter and 0.49% 0.20% 0.22% were 0.51% of total loans, an increase of 1 bp from 3Q23 0.17% 0.17% 0.17%
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk-Forward $1,737 $16,305 ✓ The 4Q23 reserve increased $219,624 ($3,241) $224,128 $4.5 million during the quarter ($10,122) ($175) to $224 million ✓ Reserve for unfunded ($000) commitments decreased $3.2 million from 3Q23, due to lower
Slide 16: 4Q23 Investor Presentation Exhibits
4Q23 INVESTOR PRESENTATION Exhibits Member FDIC. © 2024 United Community Bank | ucbi.com
Slide 17: Navitas Performance
Navitas Performance $ in millions Navitas Portfolio $1, 800 9.25% 9.30% ✓ Navitas represents 8% of total 10. 00% 9.01% 8.89% 8.88% 8.99% 9.12% 8.85% $1, 600 8.80% 8.79% loans 9.0 0% $1, 400 ✓ Navitas ACL / Loans of 2.17% 8.0 0% ✓ Navitas 4Q23 NCOs of 2.05% 7.0 0% $1, 200 6.0 0% $1, 000 annualized, o
Slide 18: Selected Portfolios – Office
Selected Portfolios – Office $ in millions Investment CRE – Office 4Q23 Portfolio Characteristics $785 Outstanding $785 million $722 $710 $711 $666 $683 $664 $661 % of Total Loans1% 4.3% 6% 20% Average Loan Size $1.3 million Median Loan Size $553 thousand Largest49% Loan Size $12.4 million 25% 30 +
Slide 19: Selected Portfolios – Senior Care
Selected Portfolios – Senior Care $ in millions Investment CRE – Senior Care 4Q23 Portfolio Characteristics Outstanding $382 million $518 % of Total Loans1% 2.1% $465 6% $442 20% $410 Average Loan Size $6.8 million $408 $394 $388 $382 Median Loan Size $6.2 million Largest49% Loan Size $18.0 million
Slide 20: Mortgage Activity Trends
Mortgage Activity Trends $ in millions Mortgage Locks & Sales ✓ Rate locks were $223 million compared to $304 $40 0 4.0 0% million in 3Q23 $35 0 3.5 0% $364 $335 2.9% 2.8% 2.9% $30 0 2.7% 3.0 0% $25 0 $305 $304 2.4% 2.5 0% ✓ 22% of locked loans were variable rate mortgages $20 0 $223 2.0 0% in 4Q23,
Slide 21: Footprint Focused on High-Growth MSAs in Southeast
Footprint Focused on High-Growth MSAs in Southeast Top 10 MSAs - % of Total Deposits Fastest Growing UCBI's % ’23 – ’28 ’23 – ’28 Major Southeast of Total Proj. Pop. Proj. HHI. (1) MSAs Deposits Growth % Growth % Myrtle Beach, SC 1) Raleigh, NC 3.73% 7.40 11.77 Charlotte, NC 2) Jacksonville, FL 0.52
Slide 22: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest Income Noninterest income - GAAP $ 33,353 $ 30,209 $ 36,387 $ 31,977 $ (23,090) Bond portfolio restructuring loss - - - - 51,689 Noninterest income - operating $ 33,353 $ 30,209 $ 36,387 $ 31,97
Slide 23: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q22 1Q23 2Q23 3Q23 4Q23 Return on Assets Return on assets - GAAP 1.33 % 0.95 % 0.95 % 0.68 % 0.18 % Merger-related and other charges - - - - 0.06 Bond portfolio restructuring loss - - - - 0.57 FDIC special assessment 0.02 0.11 0.0
Slide 24: 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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