EX-99.1 2 tm2521430d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1 

 

 

 

For Immediate Release

 

For more information:

Jefferson Harralson

Chief Financial Officer

(864) 240-6208

Jefferson_Harralson@ucbi.com

 

United Community Banks, Inc. Reports Second Quarter Earnings

Margin Expansion, Stable Credit Quality, and Disciplined Expense Control Drive Results

 

GREENVILLE, SC – July 23, 2025 – 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

2025 -

  

For the Six Months

Ended June 30,

   YTD 2025 -  
  

Second

Quarter

  

First

Quarter

  

Fourth

Quarter

  

Third

Quarter

  

Second

Quarter

  

2024

Change

   2025   2024   

2024

Change

  
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

Quarter

  

First

Quarter

  

Fourth

Quarte 

  

Third

Quarter

  

Second

Quarter

   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%

 

 

 

 

UNITED COMMUNITY BANKS, INC.                        
Loan Portfolio Composition at Period-End
   2025   2024   Linked    Year over  
(in millions) 

Second

Quarter

  

First

Quarter

  

Fourth

Quarter

  

Third

Quarter

  

Second

Quarter

  

Quarter

Change

  

Year

Change

 
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

Quarter

  

First

Quarter

  

Fourth

Quarter

 
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.  

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheets (Unaudited)
 

(in thousands, except share and per share data)  June 30,
2025		  

December

31, 2024

 
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
outstanding; $25,000 per share liquidation preference
   88,266    88,266 
Common stock, $1 par value; 200,000,000 shares authorized,
121,431,262 and 119,364,110 shares issued and outstanding, respectively
   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 

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Statements of Income (Unaudited)
 

 

  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
(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 

 

 

 

 

UNITED COMMUNITY BANKS, INC.
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.

 

 

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