Margin Expansion, Stable Credit Quality, and Disciplined Expense Control Drive Results
GREENVILLE, S.C., July 23, 2025 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the second quarter of 2025 of $78.7 million and pre-tax, pre-provision income of $112.3 million. Diluted earnings per share of $0.63 for the quarter represented an increase of $0.09 from the second quarter a year ago and an increase of $0.05 from the first quarter.
On an operating basis, United’s diluted earnings per share of $0.66 were up 14% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and lower provision for credit losses, partly offset by a modest increase in noninterest expenses and lower noninterest income.
United’s return on assets was 1.11%, or 1.16% on an operating basis. Return on common equity was 8.5% and return on tangible common equity on an operating basis was 12.3%. On a pre-tax, pre-provision basis, operating return on assets was 1.66% for the quarter. At quarter-end, tangible common equity to tangible assets was 9.45%, up 27 basis points from the first quarter.
Chairman and CEO Lynn Harton stated, “This was a great quarter, with strong financial results and continued strategic accomplishments. Tangible book value per share grew by $0.42 and we successfully completed the acquisition of American National Bank on May 1. Excluding loans and deposits received from the American National Bank acquisition, loans grew by $194 million, or 4.2% annualized, while customer deposits, excluding the expected seasonal outflow of public funds, were up $64 million or 1.3% annualized. Second quarter loan growth was funded by cash flow from securities, creating a more favorable earning asset mix. Our net interest margin improved by 14 basis points, contributing to growth in our net interest income of $13.5 million when compared to the first quarter. Operating efficiency and operating leverage also both improved from the first quarter.”
Net charge-offs were $8.2 million, or 0.18% of average loans, during the quarter, down 3 basis points from the first quarter. Nonperforming assets were 30 basis points relative to total assets, improved from 33 basis points for the first quarter. Provision for credit losses improved by $3.6 million from the first quarter, covering second quarter net charge-offs and loan growth while holding the allowance for credit losses steady at 1.21% of loans. The second quarter provision for credit losses included $2.5 million to establish an allowance on the acquired American National Bank loans, commonly referred to as the “double dip.”
Harton continued, “This time of year is special in our culture, as we pause to celebrate our customers with our annual customer appreciation day. This year’s celebration was especially rewarding as we also acknowledged our 75th anniversary as a company. We continue to see great momentum in our business and look forward to many great years ahead.”
Second Quarter 2025 Financial Highlights:
EPS of $0.63 was up $0.09 on a GAAP basis compared to second quarter 2024, and EPS of $0.66 was up $0.08, or 14%, on an operating basis; EPS up $0.05 compared to the first quarter on a GAAP basis and up $0.07, or 12%, on an operating basis
Net income of $78.7 million and pre-tax, pre-provision income of $112.3 million, up $7.3 million and $5.7 million, respectively, from the first quarter
Total revenue of $260 million improved $13 million, or 5%, from the first quarter
Net interest margin of 3.50% increased by 14 basis points from the first quarter, reflecting a lower cost of funds and improving asset mix
Noninterest income was down $948 thousand on a linked quarter basis mostly due to a $724 thousand loss on the redemption of $100 million in senior debt
Provision for credit losses was $11.8 million, down $3.6 million from the first quarter; allowance for credit losses coverage held steady at 1.21% of total loans; net charge-offs were $8.2 million, or 18 basis points as a percent of average loans, an improvement of 3 basis points compared to the first quarter
Noninterest expenses were up $6.8 million compared to the first quarter on a GAAP basis and up $3.3 million on an operating basis, of which approximately $1.2 million resulted from the acquisition of ANB
Efficiency ratio of 56.7% on a GAAP basis, or 54.8% on an operating basis, improved both linked quarter and year over year
Strong loan production led to loan growth of $194 million, excluding loans from the ANB acquisition, up 4.2% annualized, from the first quarter
Mortgage closings of $285 million compared to $215 million in second quarter 2024; mortgage rate locks of $359 million compared to $295 million in second quarter 2024
Customer deposits, excluding deposits from the ANB acquisition, were down $169 million from the first quarter, mostly due to seasonal public funds attrition. Excluding public funds and ANB, customer deposits were up $64 million
Return on assets of 1.11%, or 1.16% on an operating basis
Return on common equity and return on tangible common equity on an operating basis improved from the first quarter to 8.5% and 12.3%, respectively
Maintained strong capital ratios with preliminary Common Equity Tier 1 of 13.3%
Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year
Conference Call
United will hold a conference call on Wednesday, July 23 at 9:00 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/10200766/ff6c2759d0. Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, ucbi.com.
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||
2025 | 2024 | Second Quarter | For the Six Months Ended June 30, | YTD 2025 - 2024 Change | |||||||||||||||||||||||||||||
Second | First Quarter | Fourth | Third Quarter | Second | 2025 | 2024 | |||||||||||||||||||||||||||
INCOME SUMMARY | |||||||||||||||||||||||||||||||||
Interest revenue | $ | 347,365 | $ | 335,357 | $ | 344,962 | $ | 349,086 | $ | 346,965 | $ | 682,722 | $ | 683,693 | |||||||||||||||||||
Interest expense | 121,834 | 123,336 | 134,629 | 139,900 | 138,265 | 245,170 | 275,844 | ||||||||||||||||||||||||||
Net interest revenue | 225,531 | 212,021 | 210,333 | 209,186 | 208,700 | 8 | % | 437,552 | 407,849 | 7 | % | ||||||||||||||||||||||
Noninterest income | 34,708 | 35,656 | 40,522 | 8,091 | 36,556 | (5 | ) | 70,364 | 76,143 | (8 | ) | ||||||||||||||||||||||
Total revenue | 260,239 | 247,677 | 250,855 | 217,277 | 245,256 | 6 | 507,916 | 483,992 | 5 | ||||||||||||||||||||||||
Provision for credit losses | 11,818 | 15,419 | 11,389 | 14,428 | 12,235 | 27,237 | 25,134 | ||||||||||||||||||||||||||
Noninterest expenses | 147,919 | 141,099 | 143,056 | 143,065 | 147,044 | 1 | 289,018 | 292,046 | (1 | ) | |||||||||||||||||||||||
Income before income tax expense | 100,502 | 91,159 | 96,410 | 59,784 | 85,977 | 17 | 191,661 | 166,812 | 15 | ||||||||||||||||||||||||
Income tax expense | 21,769 | 19,746 | 20,606 | 12,437 | 19,362 | 12 | 41,515 | 37,566 | 11 | ||||||||||||||||||||||||
Net income | 78,733 | 71,413 | 75,804 | 47,347 | 66,615 | 18 | 150,146 | 129,246 | 16 | ||||||||||||||||||||||||
Non-operating items | 4,833 | 1,297 | 2,203 | 29,385 | 6,493 | 6,130 | 8,680 | ||||||||||||||||||||||||||
Income tax benefit of non-operating items | (1,047 | ) | (281 | ) | (471 | ) | (6,276 | ) | (1,462 | ) | (1,328 | ) | (1,955 | ) | |||||||||||||||||||
Net income - operating (1) | $ | 82,519 | $ | 72,429 | $ | 77,536 | $ | 70,456 | $ | 71,646 | 15 | $ | 154,948 | $ | 135,971 | 14 | |||||||||||||||||
Pre-tax pre-provision income (5) | $ | 112,320 | $ | 106,578 | $ | 107,799 | $ | 74,212 | $ | 98,212 | 14 | $ | 218,898 | $ | 191,946 | 14 | |||||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||||||||||||
Per common share: | |||||||||||||||||||||||||||||||||
Diluted net income - GAAP | $ | 0.63 | $ | 0.58 | $ | 0.61 | $ | 0.38 | $ | 0.54 | 17 | $ | 1.21 | $ | 1.05 | 15 | |||||||||||||||||
Diluted net income - operating (1) | 0.66 | 0.59 | 0.63 | 0.57 | 0.58 | 14 | 1.25 | 1.10 | 14 | ||||||||||||||||||||||||
Cash dividends declared | 0.24 | 0.24 | 0.24 | 0.24 | 0.23 | 4 | 0.48 | 0.46 | 4 | ||||||||||||||||||||||||
Book value | 28.89 | 28.42 | 27.87 | 27.68 | 27.18 | 6 | 28.89 | 27.18 | 6 | ||||||||||||||||||||||||
Tangible book value (3) | 21.00 | 20.58 | 20.00 | 19.66 | 19.13 | 10 | 21.00 | 19.13 | 10 | ||||||||||||||||||||||||
Key performance ratios: | |||||||||||||||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 8.45 | % | 7.89 | % | 8.40 | % | 5.20 | % | 7.53 | % | 8.18 | % | 7.34 | % | |||||||||||||||||||
Return on common equity - operating (1)(2)(4) | 8.87 | 8.01 | 8.60 | 7.82 | 8.12 | 8.45 | 7.73 | ||||||||||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 12.34 | 11.21 | 12.12 | 11.17 | 11.68 | 11.78 | 11.18 | ||||||||||||||||||||||||||
Return on assets - GAAP (4) | 1.11 | 1.02 | 1.06 | 0.67 | 0.97 | 1.06 | 0.94 | ||||||||||||||||||||||||||
Return on assets - operating (1)(4) | 1.16 | 1.04 | 1.08 | 1.01 | 1.04 | 1.10 | 0.99 | ||||||||||||||||||||||||||
Return on assets - pre-tax pre-provision, excluding non-operating items(1)(4)(5) | 1.66 | 1.55 | 1.55 | 1.50 | 1.54 | 1.61 | 1.47 | ||||||||||||||||||||||||||
Net interest margin (fully taxable equivalent) (4) | 3.50 | 3.36 | 3.26 | 3.33 | 3.37 | 3.43 | 3.28 | ||||||||||||||||||||||||||
Efficiency ratio - GAAP | 56.69 | 56.74 | 56.05 | 65.51 | 59.70 | 56.71 | 60.08 | ||||||||||||||||||||||||||
Efficiency ratio - operating (1) | 54.84 | 56.22 | 55.18 | 57.37 | 57.06 | 55.51 | 58.08 | ||||||||||||||||||||||||||
Equity to total assets | 12.86 | 12.56 | 12.38 | 12.45 | 12.35 | 12.86 | 12.35 | ||||||||||||||||||||||||||
Tangible common equity to tangible assets (3) | 9.45 | 9.18 | 8.97 | 8.93 | 8.78 | 9.45 | 8.78 | ||||||||||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||||||||||
Nonperforming assets ("NPAs") | $ | 83,959 | $ | 93,290 | $ | 115,635 | $ | 114,960 | $ | 116,722 | (28 | ) | $ | 83,959 | $ | 116,722 | (28 | ) | |||||||||||||||
Allowance for credit losses - loans | 216,500 | 211,974 | 206,998 | 205,290 | 213,022 | 2 | 216,500 | 213,022 | 2 | ||||||||||||||||||||||||
Allowance for credit losses - total | 228,045 | 223,201 | 217,389 | 215,517 | 224,740 | 1 | 228,045 | 224,740 | 1 | ||||||||||||||||||||||||
Net charge-offs | 8,225 | 9,607 | 9,517 | 23,651 | 11,614 | 17,832 | 24,522 | ||||||||||||||||||||||||||
Allowance for credit losses - loans to loans | 1.14 | % | 1.15 | % | 1.14 | % | 1.14 | % | 1.17 | % | 1.14 | % | 1.17 | % | |||||||||||||||||||
Allowance for credit losses - total to loans | 1.21 | 1.21 | 1.20 | 1.20 | 1.23 | 1.21 | 1.23 | ||||||||||||||||||||||||||
Net charge-offs to average loans (4) | 0.18 | 0.21 | 0.21 | 0.52 | 0.26 | 0.20 | 0.27 | ||||||||||||||||||||||||||
NPAs to total assets | 0.30 | 0.33 | 0.42 | 0.42 | 0.43 | 0.30 | 0.43 | ||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | |||||||||||||||||||||||||||||||||
Loans | $ | 18,921 | $ | 18,425 | $ | 18,176 | $ | 17,964 | $ | 18,211 | 4 | $ | 18,921 | $ | 18,211 | 4 | |||||||||||||||||
Investment securities | 6,382 | 6,661 | 6,804 | 6,425 | 6,038 | 6 | 6,382 | 6,038 | 6 | ||||||||||||||||||||||||
Total assets | 28,086 | 27,874 | 27,720 | 27,373 | 27,057 | 4 | 28,086 | 27,057 | 4 | ||||||||||||||||||||||||
Deposits | 23,963 | 23,762 | 23,461 | 23,253 | 22,982 | 4 | 23,963 | 22,982 | 4 | ||||||||||||||||||||||||
Shareholders’ equity | 3,613 | 3,501 | 3,432 | 3,407 | 3,343 | 8 | 3,613 | 3,343 | 8 | ||||||||||||||||||||||||
Common shares outstanding (thousands) | 121,431 | 119,514 | 119,364 | 119,283 | 119,175 | 2 | 121,431 | 119,175 | 2 | ||||||||||||||||||||||||
(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. (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 | ||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||
2025 | 2024 | For the Six Months Ended June 30, | ||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | 2025 | 2024 | ||||||||||||||||||||||
Noninterest income reconciliation | ||||||||||||||||||||||||||||
Noninterest income (GAAP) | $ | 34,708 | $ | 35,656 | $ | 40,522 | $ | 8,091 | $ | 36,556 | $ | 70,364 | $ | 76,143 | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 27,209 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (2,400 | ) | ||||||||||||||||||||
Noninterest income - operating | $ | 34,708 | $ | 35,656 | $ | 40,522 | $ | 35,300 | $ | 36,556 | $ | 70,364 | $ | 73,743 | ||||||||||||||
Noninterest expense reconciliation | ||||||||||||||||||||||||||||
Noninterest expenses (GAAP) | $ | 147,919 | $ | 141,099 | $ | 143,056 | $ | 143,065 | $ | 147,044 | $ | 289,018 | $ | 292,046 | ||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | (5,100 | ) | — | (5,100 | ) | |||||||||||||||||||
FDIC special assessment | — | — | — | — | 764 | — | (1,736 | ) | ||||||||||||||||||||
Merger-related and other charges | (4,833 | ) | (1,297 | ) | (2,203 | ) | (2,176 | ) | (2,157 | ) | (6,130 | ) | (4,244 | ) | ||||||||||||||
Noninterest expenses - operating | $ | 143,086 | $ | 139,802 | $ | 140,853 | $ | 140,889 | $ | 140,551 | $ | 282,888 | $ | 280,966 | ||||||||||||||
Net income to operating income reconciliation | ||||||||||||||||||||||||||||
Net income (GAAP) | $ | 78,733 | $ | 71,413 | $ | 75,804 | $ | 47,347 | $ | 66,615 | $ | 150,146 | $ | 129,246 | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 27,209 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (2,400 | ) | ||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | 5,100 | — | 5,100 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | (764 | ) | — | 1,736 | ||||||||||||||||||||
Merger-related and other charges | 4,833 | 1,297 | 2,203 | 2,176 | 2,157 | 6,130 | 4,244 | |||||||||||||||||||||
Income tax benefit of non-operating items | (1,047 | ) | (281 | ) | (471 | ) | (6,276 | ) | (1,462 | ) | (1,328 | ) | (1,955 | ) | ||||||||||||||
Net income - operating | $ | 82,519 | $ | 72,429 | $ | 77,536 | $ | 70,456 | $ | 71,646 | $ | 154,948 | $ | 135,971 | ||||||||||||||
Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||||||||||
Net income (GAAP) | $ | 78,733 | $ | 71,413 | $ | 75,804 | $ | 47,347 | $ | 66,615 | $ | 150,146 | $ | 129,246 | ||||||||||||||
Income tax expense | 21,769 | 19,746 | 20,606 | 12,437 | 19,362 | 41,515 | 37,566 | |||||||||||||||||||||
Provision for credit losses | 11,818 | 15,419 | 11,389 | 14,428 | 12,235 | 27,237 | 25,134 | |||||||||||||||||||||
Pre-tax pre-provision income | $ | 112,320 | $ | 106,578 | $ | 107,799 | $ | 74,212 | $ | 98,212 | $ | 218,898 | $ | 191,946 | ||||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
Diluted income per common share (GAAP) | $ | 0.63 | $ | 0.58 | $ | 0.61 | $ | 0.38 | $ | 0.54 | $ | 1.21 | $ | 1.05 | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 0.18 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | 0.03 | — | 0.03 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | — | — | 0.02 | |||||||||||||||||||||
Merger-related and other charges | 0.03 | 0.01 | 0.02 | 0.01 | 0.01 | 0.04 | 0.02 | |||||||||||||||||||||
Diluted income per common share - operating | $ | 0.66 | $ | 0.59 | $ | 0.63 | $ | 0.57 | $ | 0.58 | $ | 1.25 | $ | 1.10 | ||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 28.89 | $ | 28.42 | $ | 27.87 | $ | 27.68 | $ | 27.18 | $ | 28.89 | $ | 27.18 | ||||||||||||||
Effect of goodwill and other intangibles | (7.89 | ) | (7.84 | ) | (7.87 | ) | (8.02 | ) | (8.05 | ) | (7.89 | ) | (8.05 | ) | ||||||||||||||
Tangible book value per common share | $ | 21.00 | $ | 20.58 | $ | 20.00 | $ | 19.66 | $ | 19.13 | $ | 21.00 | $ | 19.13 | ||||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
Return on common equity (GAAP) | 8.45 | % | 7.89 | % | 8.40 | % | 5.20 | % | 7.53 | % | 8.18 | % | 7.34 | % | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 2.43 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (0.11 | ) | ||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | 0.46 | — | 0.23 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | (0.07 | ) | — | 0.08 | ||||||||||||||||||||
Merger-related and other charges | 0.42 | 0.12 | 0.20 | 0.19 | 0.20 | 0.27 | 0.19 | |||||||||||||||||||||
Return on common equity - operating | 8.87 | 8.01 | 8.60 | 7.82 | 8.12 | 8.45 | 7.73 | |||||||||||||||||||||
Effect of goodwill and other intangibles | 3.47 | 3.20 | 3.52 | 3.35 | 3.56 | 3.33 | 3.45 | |||||||||||||||||||||
Return on tangible common equity - operating | 12.34 | % | 11.21 | % | 12.12 | % | 11.17 | % | 11.68 | % | 11.78 | % | 11.18 | % | ||||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.11 | % | 1.02 | % | 1.06 | % | 0.67 | % | 0.97 | % | 1.06 | % | 0.94 | % | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 0.31 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (0.01 | ) | ||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | 0.06 | — | 0.03 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | (0.01 | ) | — | 0.01 | ||||||||||||||||||||
Merger-related and other charges | 0.05 | 0.02 | 0.02 | 0.03 | 0.02 | 0.04 | 0.02 | |||||||||||||||||||||
Return on assets - operating | 1.16 | % | 1.04 | % | 1.08 | % | 1.01 | % | 1.04 | % | 1.10 | % | 0.99 | % | ||||||||||||||
Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.11 | % | 1.02 | % | 1.06 | % | 0.67 | % | 0.97 | % | 1.06 | % | 0.94 | % | ||||||||||||||
Income tax expense | 0.31 | 0.29 | 0.30 | 0.19 | 0.29 | 0.30 | 0.28 | |||||||||||||||||||||
Provision for credit losses | 0.17 | 0.23 | 0.16 | 0.21 | 0.18 | 0.20 | 0.19 | |||||||||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | 0.40 | — | — | — | |||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | 0.08 | — | 0.04 | |||||||||||||||||||||
FDIC special assessment | — | — | — | — | (0.01 | ) | — | 0.01 | ||||||||||||||||||||
Merger-related and other charges | 0.07 | 0.01 | 0.03 | 0.03 | 0.03 | 0.05 | 0.03 | |||||||||||||||||||||
Return on assets - pre-tax pre-provision - operating | 1.66 | % | 1.55 | % | 1.55 | % | 1.50 | % | 1.54 | % | 1.61 | % | 1.47 | % | ||||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
Efficiency ratio (GAAP) | 56.69 | % | 56.74 | % | 56.05 | % | 65.51 | % | 59.70 | % | 56.71 | % | 60.08 | % | ||||||||||||||
Loss on sale of manufactured housing loans | — | — | — | (7.15 | ) | — | — | — | ||||||||||||||||||||
Gain on lease termination | — | — | — | — | — | — | 0.29 | |||||||||||||||||||||
Loss on FinTrust (goodwill impairment) | — | — | — | — | (2.07 | ) | — | (1.05 | ) | |||||||||||||||||||
FDIC special assessment | — | — | — | — | 0.31 | — | (0.36 | ) | ||||||||||||||||||||
Merger-related and other charges | (1.85 | ) | (0.52 | ) | (0.87 | ) | (0.99 | ) | (0.88 | ) | (1.20 | ) | (0.88 | ) | ||||||||||||||
Efficiency ratio - operating | 54.84 | % | 56.22 | % | 55.18 | % | 57.37 | % | 57.06 | % | 55.51 | % | 58.08 | % | ||||||||||||||
Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||||||||
Equity to total assets (GAAP) | 12.86 | % | 12.56 | % | 12.38 | % | 12.45 | % | 12.35 | % | 12.86 | % | 12.35 | % | ||||||||||||||
Effect of goodwill and other intangibles | (3.10 | ) | (3.06 | ) | (3.09 | ) | (3.20 | ) | (3.24 | ) | (3.10 | ) | (3.24 | ) | ||||||||||||||
Effect of preferred equity | (0.31 | ) | (0.32 | ) | (0.32 | ) | (0.32 | ) | (0.33 | ) | (0.31 | ) | (0.33 | ) | ||||||||||||||
Tangible common equity to tangible assets | 9.45 | % | 9.18 | % | 8.97 | % | 8.93 | % | 8.78 | % | 9.45 | % | 8.78 | % | ||||||||||||||
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Loan Portfolio Composition at Period-End | |||||||||||||||||||||||
2025 | 2024 | Linked Quarter Change | Year over Year Change | ||||||||||||||||||||
(in millions) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||||||||||
LOANS BY CATEGORY | |||||||||||||||||||||||
Owner occupied commercial RE | $ | 3,563 | $ | 3,419 | $ | 3,398 | $ | 3,323 | $ | 3,297 | $ | 144 | $ | 266 | |||||||||
Income producing commercial RE | 4,548 | 4,416 | 4,361 | 4,259 | 4,058 | 132 | 490 | ||||||||||||||||
Commercial & industrial | 2,516 | 2,506 | 2,428 | 2,313 | 2,299 | 10 | 217 | ||||||||||||||||
Commercial construction | 1,752 | 1,681 | 1,656 | 1,785 | 2,014 | 71 | (262 | ) | |||||||||||||||
Equipment financing | 1,778 | 1,723 | 1,663 | 1,603 | 1,581 | 55 | 197 | ||||||||||||||||
Total commercial | 14,157 | 13,745 | 13,506 | 13,283 | 13,249 | 412 | 908 | ||||||||||||||||
Residential mortgage | 3,210 | 3,218 | 3,232 | 3,263 | 3,266 | (8 | ) | (56 | ) | ||||||||||||||
Home equity | 1,180 | 1,099 | 1,065 | 1,015 | 985 | 81 | 195 | ||||||||||||||||
Residential construction | 174 | 171 | 178 | 189 | 211 | 3 | (37 | ) | |||||||||||||||
Manufactured housing (1) | — | — | 2 | 2 | 321 | — | (321 | ) | |||||||||||||||
Consumer | 191 | 183 | 186 | 188 | 183 | 8 | 8 | ||||||||||||||||
Other | 9 | 9 | 7 | 24 | (4 | ) | — | 13 | |||||||||||||||
Total loans | $ | 18,921 | $ | 18,425 | $ | 18,176 | $ | 17,964 | $ | 18,211 | $ | 496 | $ | 710 | |||||||||
LOANS BY MARKET | |||||||||||||||||||||||
Georgia | $ | 4,551 | $ | 4,484 | $ | 4,447 | $ | 4,470 | $ | 4,411 | $ | 67 | $ | 140 | |||||||||
South Carolina | 2,872 | 2,821 | 2,815 | 2,782 | 2,779 | 51 | 93 | ||||||||||||||||
North Carolina | 2,626 | 2,666 | 2,644 | 2,586 | 2,591 | (40 | ) | 35 | |||||||||||||||
Tennessee | 1,881 | 1,880 | 1,799 | 1,848 | 2,144 | 1 | (263 | ) | |||||||||||||||
Florida | 2,966 | 2,572 | 2,527 | 2,423 | 2,407 | 394 | 559 | ||||||||||||||||
Alabama | 1,016 | 1,009 | 996 | 996 | 1,021 | 7 | (5 | ) | |||||||||||||||
Commercial Banking Solutions | 3,009 | 2,993 | 2,948 | 2,859 | 2,858 | 16 | 151 | ||||||||||||||||
Total loans | $ | 18,921 | $ | 18,425 | $ | 18,176 | $ | 17,964 | $ | 18,211 | $ | 496 | $ | 710 | |||||||||
(1) For 2025 periods, manufactured housing loans are included with consumer loans.
UNITED COMMUNITY BANKS, INC. | |||||||||||||||
Credit Quality | |||||||||||||||
(in thousands) | |||||||||||||||
2025 | 2024 | ||||||||||||||
Second | First | Fourth | |||||||||||||
NONACCRUAL LOANS | |||||||||||||||
Owner occupied RE | $ | 8,207 | $ | 8,949 | $ | 11,674 | |||||||||
Income producing RE | 14,624 | 16,536 | 25,357 | ||||||||||||
Commercial & industrial | 15,422 | 22,396 | 29,339 | ||||||||||||
Commercial construction | 1,368 | 5,558 | 7,400 | ||||||||||||
Equipment financing | 11,731 | 8,818 | 8,925 | ||||||||||||
Total commercial | 51,352 | 62,257 | 82,695 | ||||||||||||
Residential mortgage | 22,597 | 22,756 | 24,615 | ||||||||||||
Home equity | 4,093 | 4,091 | 4,630 | ||||||||||||
Residential construction | 1,203 | 811 | 57 | ||||||||||||
Manufactured housing (2) | — | — | 1,444 | ||||||||||||
Consumer | 1,207 | 1,423 | 138 | ||||||||||||
Total nonaccrual loans | 80,452 | 91,338 | 113,579 | ||||||||||||
OREO and repossessed assets | 3,507 | 1,952 | 2,056 | ||||||||||||
Total NPAs | $ | 83,959 | $ | 93,290 | $ | 115,635 | |||||||||
2025 | 2024 | ||||||||||||||||||||
Second Quarter | First Quarter | Fourth 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 | $ | 470 | 0.05 | % | $ | 126 | 0.02 | % | $ | (184 | ) | (0.02)% | |||||||||
Income producing RE | 933 | 0.08 | 718 | 0.07 | (1,001 | ) | (0.09 | ) | |||||||||||||
Commercial & industrial | 1,027 | 0.16 | 2,447 | 0.40 | 4,075 | 0.69 | |||||||||||||||
Commercial construction | 89 | 0.02 | (138 | ) | (0.03 | ) | 2 | — | |||||||||||||
Equipment financing | 4,963 | 1.16 | 5,042 | 1.21 | 5,812 | 1.43 | |||||||||||||||
Total commercial | 7,482 | 0.22 | 8,195 | 0.24 | 8,704 | 0.26 | |||||||||||||||
Residential mortgage | 313 | 0.04 | (1 | ) | — | 145 | 0.02 | ||||||||||||||
Home equity | (72 | ) | (0.03 | ) | (62 | ) | (0.02 | ) | (33 | ) | (0.01 | ) | |||||||||
Residential construction | (9 | ) | (0.02 | ) | 219 | 0.51 | 7 | 0.02 | |||||||||||||
Manufactured housing (2) | — | — | — | — | 114 | 23.41 | |||||||||||||||
Consumer | 511 | 1.11 | 1,256 | 2.76 | 580 | 1.24 | |||||||||||||||
Total | $ | 8,225 | 0.18 | $ | 9,607 | 0.21 | $ | 9,517 | 0.21 | ||||||||||||
(1) Annualized. | |||||||||||||||||||||
(2) For 2025 periods, manufactured housing loans are included with consumer loans. | |||||||||||||||||||||
|
Consolidated Balance Sheets (Unaudited) |
(in thousands, except share and per share data) | June 30, | December 31, | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 201,509 | $ | 296,161 | ||||
Interest-bearing deposits in banks | 359,492 | 223,712 | ||||||
Federal funds and other short-term investments | 13,955 | — | ||||||
Cash and cash equivalents | 574,956 | 519,873 | ||||||
Debt securities available-for-sale | 4,075,323 | 4,436,291 | ||||||
Debt securities held-to-maturity (fair value $1,935,748 and $1,944,126, respectively) | 2,306,730 | 2,368,107 | ||||||
Loans held for sale | 37,143 | 57,534 | ||||||
Loans and leases held for investment | 18,920,875 | 18,175,980 | ||||||
Less allowance for credit losses - loans and leases | (216,500 | ) | (206,998 | ) | ||||
Loans and leases, net | 18,704,375 | 17,968,982 | ||||||
Premises and equipment, net | 396,479 | 394,264 | ||||||
Bank owned life insurance | 362,201 | 346,234 | ||||||
Goodwill and other intangible assets, net | 974,385 | 956,643 | ||||||
Other assets | 653,929 | 672,330 | ||||||
Total assets | $ | 28,085,521 | $ | 27,720,258 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 6,381,975 | $ | 6,211,182 | ||||
NOW and interest-bearing demand | 5,986,049 | 6,141,342 | ||||||
Money market | 6,603,556 | 6,398,144 | ||||||
Savings | 1,228,971 | 1,100,591 | ||||||
Time | 3,606,511 | 3,441,424 | ||||||
Brokered | 155,950 | 168,292 | ||||||
Total deposits | 23,963,012 | 23,460,975 | ||||||
Short-term borrowings | — | 195,000 | ||||||
Long-term debt | 155,143 | 254,152 | ||||||
Accrued expenses and other liabilities | 354,442 | 378,004 | ||||||
Total liabilities | 24,472,597 | 24,288,131 | ||||||
Shareholders' equity: | ||||||||
Preferred stock; $1 par value; 10,000,000 shares authorized; 3,662 shares Series I issued and | 88,266 | 88,266 | ||||||
Common stock, $1 par value; 200,000,000 shares authorized, | 121,431 | 119,364 | ||||||
Common stock issuable; 592,256 and 600,168 shares, respectively | 13,190 | 12,999 | ||||||
Capital surplus | 2,764,617 | 2,710,279 | ||||||
Retained earnings | 802,590 | 714,138 | ||||||
Accumulated other comprehensive loss | (177,170 | ) | (212,919 | ) | ||||
Total shareholders' equity | 3,612,924 | 3,432,127 | ||||||
Total liabilities and shareholders' equity | $ | 28,085,521 | $ | 27,720,258 | ||||
|
Consolidated Statements of Income (Unaudited) |
Three Months Ended | Six Months Ended | |||||||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||
Interest revenue: | ||||||||||||
Loans, including fees | $ | 288,284 | $ | 291,595 | $ | 562,340 | $ | 575,578 | ||||
Investment securities, including tax exempt of $1,671, $1,699, $3,349 and $3,420, respectively | 55,862 | 50,063 | 114,712 | 96,499 | ||||||||
Deposits in banks and short-term investments | 3,219 | 5,307 | 5,670 | 11,616 | ||||||||
Total interest revenue | 347,365 | 346,965 | 682,722 | 683,693 | ||||||||
Interest expense: | ||||||||||||
Deposits: | ||||||||||||
NOW and interest-bearing demand | 36,956 | 43,910 | 74,346 | 90,121 | ||||||||
Money market | 49,603 | 53,531 | 99,144 | 104,009 | ||||||||
Savings | 1,457 | 687 | 2,081 | 1,393 | ||||||||
Time | 31,120 | 36,334 | 62,499 | 72,723 | ||||||||
Deposits | 119,136 | 134,462 | 238,070 | 268,246 | ||||||||
Short-term borrowings | 83 | 60 | 1,190 | 60 | ||||||||
Federal Home Loan Bank advances | — | — | 433 | — | ||||||||
Long-term debt | 2,615 | 3,743 | 5,477 | 7,538 | ||||||||
Total interest expense | 121,834 | 138,265 | 245,170 | 275,844 | ||||||||
Net interest revenue | 225,531 | 208,700 | 437,552 | 407,849 | ||||||||
Noninterest income: | ||||||||||||
Service charges and fees | 10,122 | 10,620 | 19,657 | 19,884 | ||||||||
Mortgage loan gains and other related fees | 5,370 | 6,799 | 11,492 | 14,310 | ||||||||
Wealth management fees | 4,400 | 6,386 | 8,865 | 12,699 | ||||||||
Net gains from sales of other loans | 1,995 | 1,296 | 3,391 | 2,833 | ||||||||
Lending and loan servicing fees | 3,690 | 3,328 | 7,855 | 7,538 | ||||||||
Securities gains, net | 286 | — | 292 | — | ||||||||
Other | 8,845 | 8,127 | 18,812 | 18,879 | ||||||||
Total noninterest income | 34,708 | 36,556 | 70,364 | 76,143 | ||||||||
Total revenue | 260,239 | 245,256 | 507,916 | 483,992 | ||||||||
Provision for credit losses | 11,818 | 12,235 | 27,237 | 25,134 | ||||||||
Noninterest expenses: | ||||||||||||
Salaries and employee benefits | 86,997 | 85,818 | 171,264 | 170,803 | ||||||||
Communications and equipment | 13,332 | 11,988 | 27,031 | 23,908 | ||||||||
Occupancy | 10,935 | 11,056 | 21,864 | 22,155 | ||||||||
Advertising and public relations | 2,881 | 2,459 | 4,762 | 4,360 | ||||||||
Postage, printing and supplies | 2,495 | 2,251 | 5,056 | 4,899 | ||||||||
Professional fees | 5,609 | 6,044 | 11,540 | 12,032 | ||||||||
Lending and loan servicing expense | 2,330 | 2,014 | 4,317 | 3,841 | ||||||||
Outside services - electronic banking | 3,570 | 2,812 | 6,333 | 5,730 | ||||||||
FDIC assessments and other regulatory charges | 4,745 | 4,467 | 9,387 | 12,033 | ||||||||
Amortization of intangibles | 3,292 | 3,794 | 6,578 | 7,681 | ||||||||
Merger-related and other charges | 4,833 | 2,157 | 6,130 | 4,244 | ||||||||
Other | 6,900 | 12,184 | 14,756 | 20,360 | ||||||||
Total noninterest expenses | 147,919 | 147,044 | 289,018 | 292,046 | ||||||||
Income before income taxes | 100,502 | 85,977 | 191,661 | 166,812 | ||||||||
Income tax expense | 21,769 | 19,362 | 41,515 | 37,566 | ||||||||
Net income | 78,733 | 66,615 | 150,146 | 129,246 | ||||||||
Preferred stock dividends | 1,573 | 1,573 | 3,146 | 3,146 | ||||||||
Earnings allocated to participating securities | 438 | 368 | 850 | 713 | ||||||||
Net income available to common shareholders | $ | 76,722 | $ | 64,674 | $ | 146,150 | $ | 125,387 | ||||
Net income per common share: | ||||||||||||
Basic | $ | 0.63 | $ | 0.54 | $ | 1.21 | $ | 1.05 | ||||
Diluted | 0.63 | 0.54 | 1.21 | 1.05 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 121,377 | 119,726 | 120,714 | 119,694 | ||||||||
Diluted | 121,432 | 119,785 | 120,820 | 119,763 | ||||||||
|
Average Consolidated Balance Sheets and Net Interest Analysis |
For the Three Months Ended June 30, |
2025 | 2024 | |||||||||||||||||||
(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) | $ | 18,664,228 | $ | 288,023 | 6.19 | % | $ | 18,213,384 | $ | 291,378 | 6.43 | % | ||||||||
Taxable securities (3) | 6,492,288 | 54,191 | 3.34 | 5,952,414 | 48,364 | 3.25 | ||||||||||||||
Tax-exempt securities (FTE) (1)(3) | 354,162 | 2,236 | 2.53 | 363,393 | 2,273 | 2.50 | ||||||||||||||
Federal funds sold and other interest-earning assets | 451,953 | 3,898 | 3.46 | 499,565 | 6,011 | 4.84 | ||||||||||||||
Total interest-earning assets (FTE) | 25,962,631 | 348,348 | 5.38 | 25,028,756 | 348,026 | 5.59 | ||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Allowance for credit losses | (220,059 | ) | (215,104 | ) | ||||||||||||||||
Cash and due from banks | 203,909 | 204,792 | ||||||||||||||||||
Premises and equipment | 398,241 | 392,325 | ||||||||||||||||||
Other assets (3) | 1,637,125 | 1,605,558 | ||||||||||||||||||
Total assets | $ | 27,981,847 | $ | 27,016,327 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
NOW and interest-bearing demand | $ | 6,051,489 | 36,956 | 2.45 | $ | 5,866,038 | 43,910 | 3.01 | ||||||||||||
Money market | 6,645,336 | 49,603 | 2.99 | 6,068,530 | 53,531 | 3.55 | ||||||||||||||
Savings | 1,195,295 | 1,457 | 0.49 | 1,160,708 | 687 | 0.24 | ||||||||||||||
Time | 3,532,848 | 30,596 | 3.47 | 3,544,327 | 35,695 | 4.05 | ||||||||||||||
Brokered time deposits | 50,488 | 524 | 4.16 | 50,323 | 639 | 5.11 | ||||||||||||||
Total interest-bearing deposits | 17,475,456 | 119,136 | 2.73 | 16,689,926 | 134,462 | 3.24 | ||||||||||||||
Federal funds purchased and other borrowings | 7,412 | 83 | 4.49 | 4,093 | 60 | 5.90 | ||||||||||||||
Federal Home Loan Bank advances | — | — | — | — | — | — | ||||||||||||||
Long-term debt | 237,992 | 2,615 | 4.41 | 324,870 | 3,743 | 4.63 | ||||||||||||||
Total borrowed funds | 245,404 | 2,698 | 4.41 | 328,963 | 3,803 | 4.65 | ||||||||||||||
Total interest-bearing liabilities | 17,720,860 | 121,834 | 2.76 | 17,018,889 | 138,265 | 3.27 | ||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Noninterest-bearing deposits | 6,351,540 | 6,283,487 | ||||||||||||||||||
Other liabilities | 346,643 | 400,974 | ||||||||||||||||||
Total liabilities | 24,419,043 | 23,703,350 | ||||||||||||||||||
Shareholders' equity | 3,562,804 | 3,312,977 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 27,981,847 | $ | 27,016,327 | ||||||||||||||||
Net interest revenue (FTE) | $ | 226,514 | $ | 209,761 | ||||||||||||||||
Net interest-rate spread (FTE) | 2.62 | % | 2.32 | % | ||||||||||||||||
Net interest margin (FTE) (4) | 3.50 | % | 3.37 | % | ||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $983,000 and $1.06 million, respectively, for the three months ended June 30, 2025 and 2024. The tax rate used to calculate the adjustment was 25%, 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 AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $240 million in 2025 and $344 million in 2024 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.
UNITED COMMUNITY BANKS, INC. |
Average Consolidated Balance Sheets and Net Interest Analysis |
For the Six Months Ended June 30, |
2025 | 2024 | |||||||||||||||||||
(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) | $ | 18,440,110 | $ | 561,953 | 6.15 | % | $ | 18,256,562 | $ | 575,338 | 6.34 | % | ||||||||
Taxable securities (3) | 6,614,294 | 111,363 | 3.37 | 5,890,408 | 93,079 | 3.16 | ||||||||||||||
Tax-exempt securities (FTE) (1)(3) | 355,430 | 4,481 | 2.52 | 364,873 | 4,584 | 2.51 | ||||||||||||||
Federal funds sold and other interest-earning assets | 426,415 | 6,899 | 3.26 | 587,080 | 12,816 | 4.39 | ||||||||||||||
Total interest-earning assets (FTE) | 25,836,249 | 684,696 | 5.34 | 25,098,923 | 685,817 | 5.49 | ||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||
Allowance for loan losses | (215,141 | ) | (214,050 | ) | ||||||||||||||||
Cash and due from banks | 211,681 | 212,998 | ||||||||||||||||||
Premises and equipment | 397,347 | 389,173 | ||||||||||||||||||
Other assets (3) | 1,623,689 | 1,611,928 | ||||||||||||||||||
Total assets | $ | 27,853,825 | $ | 27,098,972 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
NOW and interest-bearing demand | $ | 6,092,519 | 74,346 | 2.46 | $ | 5,972,065 | 90,121 | 3.03 | ||||||||||||
Money market | 6,614,819 | 99,144 | 3.02 | 5,966,374 | 104,009 | 3.51 | ||||||||||||||
Savings | 1,146,075 | 2,081 | 0.37 | 1,176,768 | 1,393 | 0.24 | ||||||||||||||
Time | 3,489,687 | 61,427 | 3.55 | 3,570,407 | 71,639 | 4.03 | ||||||||||||||
Brokered time deposits | 50,468 | 1,072 | 4.28 | 50,333 | 1,084 | 4.33 | ||||||||||||||
Total interest-bearing deposits | 17,393,568 | 238,070 | 2.76 | 16,735,947 | 268,246 | 3.22 | ||||||||||||||
Federal funds purchased and other borrowings | 43,883 | 1,190 | 5.47 | 2,054 | 60 | 5.87 | ||||||||||||||
Federal Home Loan Bank advances | 19,343 | 433 | 4.51 | 2 | — | — | ||||||||||||||
Long-term debt | 246,061 | 5,477 | 4.49 | 324,854 | 7,538 | 4.67 | ||||||||||||||
Total borrowed funds | 309,287 | 7,100 | 4.63 | 326,910 | 7,598 | 4.67 | ||||||||||||||
Total interest-bearing liabilities | 17,702,855 | 245,170 | 2.79 | 17,062,857 | 275,844 | 3.25 | ||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Noninterest-bearing deposits | 6,273,313 | 6,340,783 | ||||||||||||||||||
Other liabilities | 358,227 | 395,713 | ||||||||||||||||||
Total liabilities | 24,334,395 | 23,799,353 | ||||||||||||||||||
Shareholders' equity | 3,519,430 | 3,299,619 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 27,853,825 | $ | 27,098,972 | ||||||||||||||||
Net interest revenue (FTE) | $ | 439,526 | $ | 409,973 | ||||||||||||||||
Net interest-rate spread (FTE) | 2.55 | % | 2.24 | % | ||||||||||||||||
Net interest margin (FTE) (4) | 3.43 | % | 3.28 | % | ||||||||||||||||
(1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.97 million and $2.12 million, respectively, for the six months ended June 30, 2025 and 2024. The tax rate used to calculate the adjustment was 25%, 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 AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $254 million in 2025 and $333 million in 2024 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. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution committed to building stronger communities and improving the financial health and well-being of its customers. United Community offers a full range of banking, mortgage and wealth management services. As of June 30, 2025, United Community Banks, Inc. had $28.1 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. The company also manages a nationally recognized SBA lending franchise and a national equipment finance subsidiary, extending its reach to businesses across the country. United is an 11-time winner of J.D. Power’s award for highest customer satisfaction among consumer banks in the Southeast and was named the most trusted bank in the region in 2025. The company has also been recognized eight consecutive years by American Banker as one of the “Best Banks to Work For.” In commercial banking, United earned five 2025 Greenwich Best Brand awards, including national honors for middle market satisfaction. Forbes has consistently named United among the World’s Best and America’s Best Banks. Learn more 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 “noninterest income – operating”, “noninterest expense - operating”, “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 - operating,” “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. 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 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, 2024, 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