United Community Banks Inc. Files Q2 2024 10-Q

TL;DR

UCBI dropped its Q2 10-Q. Financials look steady, no major red flags.

AI Summary

United Community Banks Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and disclosures relevant to investors and regulatory bodies are presented within this report.

Why It Matters

This 10-Q filing provides crucial insights into United Community Banks' financial health and strategic direction for the second quarter of 2024, impacting investor decisions and market perception.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the specific quarter for which financial data is reported.)
• 1231 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• UNITED COMMUNITY BANKS INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240809 (date) — Filing Date
• UNION BANCSHARES INC /GA/ (company) — Former Company Name

FAQ

Key Financial Figures

• $1 — ich Registered Common stock, par value $1 per share UCB New York Stock Exchange

Filing Documents

• ucbi-20240630.htm (10-Q) — 4849KB
• ucbi6302410-qexhibit311.htm (EX-31.1) — 11KB
• ucbi6302410-qexhibit312.htm (EX-31.2) — 11KB
• ucbi6302410-qexhibit32.htm (EX-32) — 10KB
• ucbi-20240630_g1.jpg (GRAPHIC) — 89KB
• ucbi-20240630_g2.jpg (GRAPHIC) — 61KB
• ucbi-20240630_g3.jpg (GRAPHIC) — 72KB
• 0000857855-24-000059.txt ( ) — 23528KB
• ucbi-20240630.xsd (EX-101.SCH) — 78KB
• ucbi-20240630_cal.xml (EX-101.CAL) — 189KB
• ucbi-20240630_def.xml (EX-101.DEF) — 633KB
• ucbi-20240630_lab.xml (EX-101.LAB) — 1145KB
• ucbi-20240630_pre.xml (EX-101.PRE) — 865KB
• ucbi-20240630_htm.xml (XML) — 5926KB

- Financial Information

PART I - Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (unaudited) 5 Consolidated Statements of Income (unaudited) 6 Consolidated Statements of Comprehensive Income (unaudited) 7 Consolidated Statements of Changes in Shareholders' Equity (unaudited) 8 Consolidated Statements of Cash Flows (unaudited) 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 60

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 5. Other Information. 61 Item 6. Exhibits 61 2 Glossary of Defined Terms The following terms may be used throughout this report, including the consolidated financial statements and related notes. Term Definition 2023 10-K United's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024 ACL Allowance for credit losses AFS Available-for-sale ALCO Asset/Liability Management Committee AOCI Accumulated other comprehensive income (loss) ASU Accounting standards update Bank United Community Bank Board United Community Banks Inc., Board of Directors BOLI Bank-owned life insurance CECL Current expected credit loss CET1 Common equity tier 1 CME Chicago Mercantile Exchange CRE Commercial real estate Company United Community Banks Inc. (interchangeable with "United" below) CVA Credit valuation adjustment FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FDM Modification made to borrowers experiencing financial difficulty Federal Reserve Federal Reserve System FinTrust Collectively, FinTrust Brokerage Services, LLC and FinTrust Capital Advisors, LLC First Miami First Miami Bancorp, Inc. and its wholly-owned subsidiary, First National Bank of South Miami FHLB Federal Home Loan Bank FRB Federal Reserve Bank FTE Fully taxable equivalent GAAP Accounting principles generally accepted in the United States of America GSE U.S. government-sponsored enterprise Holding Company United Community Banks, Inc. on an unconsolidated basis HTM Held-to-maturity LIHTC Low-income housing tax credit MD&A Management's Discussion and Analysis of Financial Condition and Results of Operations MBS Mortgage-backed securities NOW Negotiable order of withdrawal NPA Nonperforming asset OCI Other comprehensive income (loss) OREO Other real estate owned PAM Proportional amortization method PCD Purchased credit deteriorated Progress Progress Fin

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 198,234 $ 200,781 Interest-bearing deposits in banks 364,629 803,094 Cash and cash equivalents 562,863 1,003,875 Debt securities available-for-sale 3,604,769 3,331,084 Debt securities held-to-maturity (fair value $ 2,004,427 and $ 2,095,620 , respectively) 2,432,941 2,490,848 Loans held for sale 49,315 33,008 Loans and leases held for investment 18,211,193 18,318,755 Allowance for credit losses - loans and leases ( 213,022 ) ( 208,071 ) Loans and leases, net 17,998,171 18,110,684 Premises and equipment, net 395,202 378,421 Bank owned life insurance 344,162 345,371 Goodwill and other intangible assets, net 978,645 990,087 Other assets (including $ 116,423 and $ 111,879 at fair value, respectively) 691,133 613,873 Total assets $ 27,057,201 $ 27,297,251 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $ 6,291,124 $ 6,534,307 Interest-bearing deposits 16,690,998 16,776,304 Total deposits 22,982,122 23,310,611 Long-term debt 324,887 324,823 Accrued expenses and other liabilities (including $ 101,645 and $ 97,649 at fair value, respectively) 407,559 400,292 Total liabilities 23,714,568 24,035,726 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, 119,174,803 and 119,010,319 shares issued and outstanding, respectively 119,175 119,010 Common stock issuable: 568,985 and 620,108 shares, respectively 12,145 13,110 Capital surplus 2,705,345 2,699,112 Retained earnings 652,239 581,219 Accumulated other comprehensive loss ( 234,537 ) ( 239,192 ) Total shareholders' equity 3,342,633 3,261,525 Total liabilit

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Basis of Presentation Basis of Presentation United's accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United's accounting policies is included in its 2023 10-K. In management's opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in United's 2023 10-K. In May 2024, United officially moved its Holding Company headquarters from Blairsville, Georgia to Greenville, South Carolina. Effective in June 2024, the Bank changed its primary federal regulator from the FDIC to the Federal Reserve. Effective August 6, 2024, United transferred the listing of its securities from NASDAQ to the New York Stock Exchange. The common shares are now listed under the trading symbol UCB and the preferred Series I depositary shares are now listed under the trading symbol UCB PRI. Revision of Previously Issued Financial Statements In this Form 10-Q, management corrected an immaterial error related to the loan vintage disclosure reported in previously issued financial statements for the period presented in the 2023 10-K. The error relates to the incorrect determination of the vintage year for a population of term loans and gross charge-offs. The correction

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 3 – Supplemental Cash Flow Information The supplemental schedule of significant non-cash investing and financing activities for the six months ended June 30, 2024 and 2023 is as follows. Six Months Ended June 30, (in thousands) 2024 2023 Significant non-cash investing and financing transactions: Commitments to fund other investments $ 9,214 $ 11,093 Acquisitions: Assets acquired — 1,903,930 Liabilities assumed — 1,597,022 Net assets acquired — 306,908 Common stock issued and options converted — 306,461 Note 4 – Acquisitions Acquisition of First Miami On July 1, 2023, United acquired all of the outstanding common stock of First Miami in a stock transaction. Information related to the fair value of assets and liabilities acquired is included in the 2023 10-K. During the first quarter of 2024, within the one-year measu

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View this 10-Q filing on SEC EDGAR