United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q4 2024 Earnings Presentation
25 slides from United Community Banks's earnings presentation, Jan 22, 2025
Slide 1: 4Q24 Investor Presentation
4Q24 Investor Presentation January 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 $27.7 $3.2 $18.2 BILLION IN BILLION IN 13.2% (1) BILLION IN TOTAL CET1 RBC TOTAL AUA ASSETS LOANS Regional Full-Service Branch Network National Navitas and SBA Markets $23.5 $0.24 199 BILLION IN QUARTERLY BANKING OFFICES TOTAL COMMON ACROSS THE DEPOSITS
Slide 4: 4Q24 Highlights
$0.61 Diluted earnings per share – GAAP $0.63 Diluted earnings per share – operating (1) 4Q24 Highlights 1.06% 1.01% Return on assets – GAAP Diluted Earnings Per Share Return on Average Assets 1.08% Return on Return assets on (1) – assets – operating (1) 1.08% operating 1.06% $0.61 $0.63 1.01% $0.57
Slide 5: Outstanding Deposit Franchise
Outstanding Deposit Franchise 4Q24 Change in Customer Deposits $ in millions Customer Deposit Growth $96 $189 Customer deposits were up $213 million, or 3.7% ( $13 ) ( $49 ) $23,293 annualized, from 3Q24 $23,080 ( $11 ) Public funds of $3.2 billion were up seasonally $414 million from 3Q24 DDA% stab
Slide 6: Significant Near-Term CD Repricing Opportunity
Significant Near-Term CD Repricing Opportunity Total Deposit Mix Trend $ in billions Deposits are granular with a $34,000 average account size $23.3 $23.3 $23.0 $23.3 $23.5 and are diverse by industry and geography $6.5 $6.4 $6.3 $6.2 $6.2 Business deposits of $8.5 billion and personal deposits of $
Slide 7: Stronger Targeted Loan Growth
Stronger Targeted Loan Growth 4Q24 Loan Portfolio Growth $ in millions % QoQ annualized Quarter Highlights $102 $60 $50 Loan growth of 4.7% annualized, primarily driven $190 ($140) ($33) ($17) by C&I, equipment finance, and HELOC $18,176 $17,964 Senior Care portfolio down $5 million, or 2% annualize
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 91% $6.8 billion securities portfolio offers significant near- and medium-term cash flow opportunities Wholesale borrowings remained very low in 4Q24 0.7% of total
Slide 9: Stable Above-Peer Capital Ratios
Stable Above-Peer Capital Ratios Risk-Based Capital Ratios 4Q24 regulatory risk-based capital ratios remained strong and above peers 14.5% 14.6% 15.1% 15.3% 14.5% 15.1% The leverage ratio decreased 3 bps to 1.8% 1.8% 1.5% 9.96%, as compared to 3Q24 1.9% 1.8% 0.5% 1.8% 0.5% 0.5% 0.4% 0.4% 0.6% Quarte
Slide 10: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin Net Interest Revenue & Net Interest Margin $ in millions Net interest revenue increased $1.1 million from 3Q24 $209.2 $210.3 Core net interest margin, excluding purchase loan accretion, was down $203.5 4.00% $ 200.0 7 bps to 3.19%, primarily due to public funds seas
Slide 11: Noninterest Income - Operating
Noninterest Income - Operating $40.5 $ in millions Linked Quarter $37.2 $36.6 GAAP noninterest income was up $32.4 million to $40.5 $35.3 million, primarily due to the loss on the sale of our MH loan portfolio in 3Q24 $13.9 On an operating basis, noninterest income increased $5.2 $12.6 $11.5 million
Slide 12: Noninterest Expense
Noninterest Expense Efficiency Ratio 66.3% The operating efficiency ratio improved to 55.2%, down from 65.5% the prior quarter and prior year The GAAP efficiency ratio was unfavorably impacted in 60.5% the prior quarter and prior year by the one-time sale of the 59.7% manufactured housing portfolio
Slide 13: Credit Quality
Credit Quality Net Charge-Offs as % of Average Loans 4Q24 net charge-offs of $9.5 million, or 0.21% of loans annualized Navitas losses contributed 0.13% of the 0.21% 0.59% 0.52% Bank net charge-offs, excluding Navitas, were 0.08%; down $3.1 million from 3Q24 when excluding Manufactured Housing charg
Slide 14: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk-Forward $ in thousands Provision of $11.4 million covers charge- offs and loan growth for the quarter and $ 3,279 $ 164 $ 8,282 the Allowance remains stable at 1.20% of $217,389 the portfolio $215,517 $27 million in total hurricane-r
Slide 15: Exhibits
4Q24 INVESTOR PRESENTATION Exhibits
Slide 16: Average Deposit Costs
Average Deposit Costs 4Q23 1Q24 2Q24 3Q24 4Q24 $ 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 $6.7 N/A $6.4 N/A $6.3 N/A $6.2 N/A $6.3 N/A NOW $6.0 2.96% $6.1 3.06% $
Slide 17: Navitas Performance
Navitas Performance Navitas Portfolio $ in millions Navitas represents 9% of total loans 9.68% 9.58% 9.64% Navitas ACL / Loans of 2.85% 9.25% 9.30% 9.43% 9.12% Navitas 4Q24 NCOs of 1.43% annualized, or $5.8 8.99% 8.85% 8.80% 8.79% 8.88% million Of the $5.8 million of losses, $1.8 million came from $
Slide 18: Selected Portfolios – Office
Selected Portfolios – Office Top 10 MSAs by Note Current Balance + Unfunded Commitment – Weighted Avg. LTV 62.0% 4Q24 Portfolio Characteristics $ in millions Outstanding $841.3 million Atlanta, GA LTV 61.8% $122.5 % of Total Loans 4.6% Charleston, SC LTV 62.8% $98.1 Average1%Loan Size $1.4 million M
Slide 19: Selected Portfolios – Multi-Family
Selected Portfolios – Multi-Family Top 10 MSAs by Note Current Balance + Unfunded Commitment – Weighted Avg. LTV 49.6% 4Q24 Portfolio Characteristics $ in millions Outstanding $977.2 million Atlanta, GA LTV 42.1% $114.2 % of Total Loans 5.4% Raleigh, NC LTV 48.5% $110.3 Average1%Loan Size $2.8 milli
Slide 20: Selected Portfolios – Senior Care
Selected Portfolios – Senior Care Investment CRE – Senior Care Outstanding 4Q24 Portfolio Characteristics $ in millions Outstanding $311.9 million $518 $465 % of Total Loans 1.7% $442 $408 $410 $393 Average1%Loan Size $7.1 million $387 $382 6% $369 $355 20% Median Loan Size $5.6 million $317 $312 La
Slide 21: Mortgage Activity Trends
Mortgage Activity Trends Mortgage Locks & Sales $ in millions Rate locks were $285 million compared to $306 million in 3.0% 3Q24, driven primarily by seasonality 2.9% 3.0% $306 $295 2.8% $285 79% of locked loans were fixed-rate mortgages, which were 2.4% $260 either sold in 4Q24 or are contemplated
Slide 22: 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 23: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q23 1Q24 2Q24 3Q24 4Q24 Noninterest Income Noninterest income - GAAP $ (23,090) $ 39,587 $ 36,556 $ 8,091 $ 40,522 Loss on sale of manufactured housing loans - - - 27,209 - Gain on lease termination - (2,400) - - - Bond portfolio
Slide 24: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 4Q23 1Q24 2Q24 3Q24 4Q24 Return on Assets Return on assets - GAAP 0.18 % 0.90 % 0.97 % 0.67 % 1.06 % Loss on sale of manufactured housing loans - - - 0.31 - Merger-related and other charges 0.06 0.03 0.01 0.03 0.02 Bond portfolio r
Slide 25: 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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