United Community Banks Q3 2024 Financials Released

TL;DR

UCBI Q3 2024 results are in, showing deposit and mortgage banking performance.

AI Summary

United Community Banks Inc. reported its third-quarter results for the period ending September 30, 2024. The company's filing details financial performance across various segments, including deposit accounts and mortgage banking activities. Specific financial figures and operational data for the third quarter of 2024 and year-to-date are provided.

Why It Matters

This filing provides insight into the financial health and operational performance of United Community Banks Inc., impacting investors and stakeholders by revealing key financial metrics and trends.

Risk Assessment

Risk Level: medium — As a financial institution, United Community Banks Inc. is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 2024-09-30 — Period End Date (Reporting period for the 10-Q filing.)
• 2024-01-01 — Year-to-Date Start Date (Beginning of the reporting period for year-to-date figures.)
• 2023-12-31 — Previous Year End Date (Reference point for comparative financial data.)
• 2024-07-01 — Q3 2024 Start Date (Beginning of the third quarter of 2024.)
• 2023-07-01 — Q3 2023 Start Date (Beginning of the third quarter of 2023.)

Key Players & Entities

• UNITED COMMUNITY BANKS INC (company) — Filer
• UNION BANCSHARES INC /GA/ (company) — Former company name
• 20240930 (date) — Period of report
• 20241108 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• ucbi-20240930.htm (10-Q) — 5003KB
• ucbi9302410-qexhibit311.htm (EX-31.1) — 11KB
• ucbi9302410-qexhibit312.htm (EX-31.2) — 11KB
• ucbi9302410-qexhibit32.htm (EX-32) — 10KB
• ucbi-20240930_g1.jpg (GRAPHIC) — 89KB
• ucbi-20240930_g2.jpg (GRAPHIC) — 61KB
• ucbi-20240930_g3.jpg (GRAPHIC) — 73KB
• 0000857855-24-000099.txt ( ) — 24082KB
• ucbi-20240930.xsd (EX-101.SCH) — 81KB
• ucbi-20240930_cal.xml (EX-101.CAL) — 192KB
• ucbi-20240930_def.xml (EX-101.DEF) — 649KB
• ucbi-20240930_lab.xml (EX-101.LAB) — 1165KB
• ucbi-20240930_pre.xml (EX-101.PRE) — 883KB
• ucbi-20240930_htm.xml (XML) — 6033KB

- 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 38 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 61

- Other Information

PART II - Other Information Item 5. Other Information. 62 Item 6. Exhibits 62 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 losses 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 Progres

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) September 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 202,644 $ 200,781 Interest-bearing deposits in banks 537,395 803,094 Cash and cash equivalents 740,039 1,003,875 Debt securities available-for-sale 4,023,455 3,331,084 Debt securities held-to-maturity (fair value $ 2,060,729 and $ 2,095,620 , respectively) 2,401,877 2,490,848 Loans held for sale 49,800 33,008 Loans and leases held for investment 17,964,099 18,318,755 Allowance for credit losses - loans and leases ( 205,290 ) ( 208,071 ) Loans and leases, net 17,758,809 18,110,684 Premises and equipment, net 396,696 378,421 Bank owned life insurance 345,703 345,371 Goodwill and other intangible assets, net 975,117 990,087 Other assets (including $ 104,796 and $ 111,879 at fair value, respectively) 681,636 613,873 Total assets $ 27,373,132 $ 27,297,251 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $ 6,222,518 $ 6,534,307 Interest-bearing deposits 17,030,584 16,776,304 Total deposits 23,253,102 23,310,611 Long-term debt 316,363 324,823 Accrued expenses and other liabilities (including $ 79,048 and $ 97,649 at fair value, respectively) 396,987 400,292 Total liabilities 23,966,452 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, 119,282,762 and 119,010,319 shares issued and outstanding, respectively 119,283 119,010 Common stock issuable: 588,296 and 620,108 shares, respectively 12,661 13,110 Capital surplus 2,707,266 2,699,112 Retained earnings 668,965 581,219 Accumulated other comprehensive loss ( 189,761 ) ( 239,192 ) Total shareholders' equity 3,406,680 3,261,525 Total liab

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 During the second quarter of 2024, 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 revised December 31, 2023 loan vintage disclosure was included in United's second quarter Form 10-Q and is included in

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 nine months ended September 30, 2024 and 2023 is as follows. Nine Months Ended September 30, (in thousands) 2024 2023 Significant non-cash investing and financing transactions: Commitments to fund other investments $ 9,214 $ 16,410 Unsettled securities purcha

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View this 10-Q filing on SEC EDGAR