United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q1 2024 Earnings Presentation
26 slides from United Community Banks's earnings presentation, Apr 24, 2024
Slide 1: 1Q24 Investor Presentation
1Q24 Investor Presentation April 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 $27.4 $18.4 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full-Service Branch Network National Navitas and SBA Markets $5.7 $23.3 BILLION IN BILLION IN AUA TOTAL DEPOSITS AMERICA’S BEST BANKS 12.8% in 2023 for the ninth UCBI Banking Offices TIE
Slide 5: 1Q24 Highlights
$0.51 7.14% Diluted earnings per share – GAAP Return on common equity – GAAP 1Q24 Highlights $0.52 10.68% Diluted earnings per share – Return on tangible common equity – operating(1) operating(1) Diluted Earnings Per Share Return on Average Assets 1.06% 60.5% $0.52 $0.58 $0.53 $0.51 $0.52 0.95% 0.92
Slide 6: Outstanding Deposit Franchise
Outstanding Deposit Franchise 1Q24 Change in Customer Deposits $ in millions $314 Strong Customer Deposit Growth $23,147 ($125) ($100) ($54) $23,157 ✓ Customer deposits were up $10 million in ($25) 1Q24 despite seasonal declines in public funds accounts ✓ Excluding brokered deposits and public funds
Slide 7: Well-Diversified Loan Portfolio
Well-Diversified Loan Portfolio 1Q24 Total Loans $18.4 billion Manufactured Residential Construction Housing Quarter Highlights Home Equity 5% 1% 2% ✓ Loans increased $56 million or 1.2% annualized ✓ C&I includes Commercial & industrial, Owner Residential occupied CRE and Equipment financing 18% Mor
Slide 8: Balance Sheet Strength – Liquidity and Capital
Balance Sheet Strength – Liquidity and Capital Loans / Deposits % 86% ✓ Substantial balance sheet liquidity and above-peer capital ratios ✓ $5.9 billion securities portfolio offers significant near- and 80% 77% 78% 78% 79% 79% medium-term cash flow opportunities ✓ FHLB borrowings remained at zero in
Slide 9: Capital
Capital Risk-Based Capital Ratios CET1 Non-common Tier 1 Tier 2 Total ✓ 1Q24 regulatory risk-based capital ratios 14.8% 14.4% 14.6% 14.5% 14.5% 14.6% increased from 4Q23 and remained above 13.9% 2.0% 1.8% peers 1.8% 1.9% 1.9% 1.9% 1.9% 0.5% 0.5% 0.5% 0.5% 0.4% 0.5% 0.5% ✓ The leverage ratio increase
Slide 10: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin Net Interest Revenue & Net Interest Margin $ in millions ✓ Net interest revenue decreased $4.3 million from 4Q23, as $211.5 lower average interest-earning assets and a lower day $203.5 $199.1 4.0 0% $20 0.0 count offset the effect of a higher margin 3.61% 3.5 0% $18
Slide 11: Noninterest Income - Operating
Noninterest Income - Operating $ in millions $37.2 Linked Quarter $36.4 ✓ Noninterest income was up $62.7 million to $39.6 million, primarily due to the absence of $32.0 the $51.7 million loss from the bond portfolio $30.2 $12.6 restructuring transaction in 4Q23 $12.1 $6.3 $28.6 ✓ On an operating ba
Slide 12: Noninterest Expense
Noninterest Expense Efficiency Ratio % 66.3% ✓ The GAAP efficiency ratio decreased compared to last quarter mostly due to lower merger-related and 61.3% 63.4% 60.5% other charges and lower FDIC deposit insurance 57.2% 55.7% 59.6% charges 59.2% 57.4% 53.7% 54.2% ✓ On an operating basis, the efficienc
Slide 13: Credit Quality
Credit Quality Net Charge-Offs as % of Average Loans ✓ 1Q24 net charge-offs of $12.9 million or 0.28% of average 0.59% loans annualized ✓ Nonperforming assets increased $14.4 million during the 0.20% 0.49% 0.28% quarter and were 0.58% of total loans, an increase of 0.22% 0.17% 0.17% 7 bps from 4Q23
Slide 14: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses (ACL) Walk-Forward $ in thousands $16,331 ✓ The 1Q24 reserve was flat from 4Q23 $224,128 ($213) ($2,878) $224,119 ✓ Reserve for unfunded commitments ($12,908) ($341) decreased $2.9 million from 4Q23 due to lower commercial and residential const
Slide 15: 1Q24 Exhibits
1Q24 INVESTOR PRESENTATION Exhibits Member FDIC. © 2024 United Community Bank | ucbi.com
Slide 16: Deposit Trends
Deposit Trends 1Q24 Total Deposits $ in billions ✓ Deposits are granular with a $34 thousand average $0.8 account size and are diverse by industry and $1.3 geography ✓ Business deposits of $8.7 billion and personal deposits of $11.4 billion in 1Q24 $23.3 $23.3 $20.7 $22.3 $22.1 • The remaining $3.2
Slide 17: Average Deposit Costs
Average Deposit Costs 1Q23 2Q23 3Q23 4Q23 1Q24 $ in billions; Average Average Average Average Average Average Average Average Average Average rates annualized Balance Rate Balance Rate Balance Rate Balance Rate Balance Rate DDA $7.7 N/A $7.1 N/A $6.9 N/A $6.7 N/A $6.4 N/A NOW $4.5 1.59% $4.9 2.27% $
Slide 18: Navitas Performance
Navitas Performance Navitas Portfolio $ in millions 9.12% 9.25% 9.30% 9.43% ✓ Navitas represents 8% of total loans 8.99% $1, 800 10. 00% 8.89% 8.85% 8.80% 8.79% 8.88% $1, 600 9.0 0% ✓ Navitas ACL / Loans of 2.59% ✓ Navitas 1Q24 NCOs of 1.66% annualized or 8.0 0% $1, 400 7.0 0% $6.4 million $1, 200 6
Slide 19: Selected Portfolios – Office
Selected Portfolios – Office Investment CRE – Office 1Q24 Portfolio Characteristics $ in millions $818 $785 Outstanding $818 million $722 $710 $711 % of Total Loans 4.4% $683 $666 $664 $661 1% Average Loan Size6% $1.4 million 20% Median Loan Size $582 thousand Largest Loan Size $12.3 million 49% 25%
Slide 20: Selected Portfolios – Multi-Family
Selected Portfolios – Multi-Family Investment CRE – Multi-family 1Q24 Portfolio Characteristics $ in millions $832 Outstanding $832 million $783 $742 Commitment $1.2 billion 1% $625 % of Total Loans 6% 4.5% $572 20% $465 Largest Loan Size Commitment $34.5 million $394 $358 30 + Days Past Due $0 $324
Slide 21: Selected Portfolios – Senior Care
Selected Portfolios – Senior Care Investment CRE – Senior Care 1Q24 Portfolio Characteristics $ in millions Outstanding $369 million $518 $465 % of Total Loans 2.0% $442 $410 1% $408 Average Loan Size6% $6.8 million $394 $388 $382 20% $369 Median Loan Size $5.7 million Largest Loan Size $21.3 millio
Slide 22: Mortgage Activity Trends
Mortgage Activity Trends Mortgage Locks & Sales $ in millions $40 0 4.0 0% ✓ Rate locks were $260 million compared to $223 million in $35 0 3.5 0% 4Q23 $335 2.9% 2.8% 2.9% 2.9% ✓ 92% of locked loans were fixed rate mortgages, which $30 0 3.0 0% $305 $304 2.4% were either sold in 1Q24 or are contempl
Slide 23: 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 24: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q23 2Q23 3Q23 4Q23 1Q24 Noninterest Income Noninterest income - GAAP $ 30,209 $ 36,387 $ 31,977 $ (23,090) $ 39,587 Bond portfolio restructuring loss - - - 51,689 - Lease termination gain - - - - (2,400) Noninterest income - opera
Slide 25: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q23 2Q23 3Q23 4Q23 1Q24 Return on Assets Return on assets - GAAP 0.95 % 0.95 % 0.68 % 0.18 % 0.90 % Merger-related and other charges - - - 0.06 0.03 Bond portfolio restructuring loss - - - 0.57 - FDIC special assessment 0.11 0.05
Slide 26: 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
United Community Banks — Q1 2024 Earnings Presentation on 6ix