Chairman and CEO
The net interest margin increased by 19 basis points to 3.76% from the third quarter, while the average yield on interest-earning assets was up 49 basis points to 4.32% and United’s cost of deposits increased by 30 basis points to 0.49%. Net charge-offs increased to
2022 Financial Highlights:
- Completed successful year with strong loan growth and historically high pre-credit profitability, and completed an acquisition in the high-growth
Nashville, Tennessee MSA, which was a strategic priority - Full year EPS of
$2.52 , a decrease of 15% compared to 2021; full year operating EPS of$2.66 , a decrease of 14% from 2021 - Return on assets of 1.13%, or 1.19% on an operating basis
- Pre-tax, pre-provision return on assets of 1.80% on an operating basis
- Return on common equity of 9.5%
- Return on tangible common equity of 14.0% on an operating basis
- A provision for credit losses of
$63.9 million compared to a release of provision of$37.6 million in 2021, with$18.3 million attributable to establishing an initial allowance for loans acquired in the first quarter in the Reliant acquisition - Strong loan growth of
$3.6 billion or$1.3 billion excluding loans acquired from Reliant and PPP loans - Core transaction deposits were up
$1.3 billion compared to 2021; excluding Reliant, 2022 core transaction deposits were down$819 million , or 5.7%, reflecting runoff following 2021’s pandemic-related deposit surge - Net interest margin of 3.38%, which was up 31 basis points from last year primarily due to increased interest rates
- Noninterest income was down 12.7% primarily due to a decline in mortgage fees, as higher rates softened demand
- The efficiency ratio of 52.3%, or 50.2% on an operating basis, was improved as the combination of higher rates and the achievement of merger-related efficiencies drove the ratio to record low levels
- Net charge-offs remained low at just
$9.7 million , or 0.07% of average total loans
Fourth Quarter 2022 Financial Highlights:
- Net income of
$81.5 million and pre-tax, pre-provision income of$125.9 million - EPS increased by 35% compared to fourth quarter 2021 on a GAAP basis and 17% on an operating basis; compared to third quarter 2022, EPS remained flat on a GAAP basis and on an operating basis
- Return on assets of 1.33%, or 1.35% on an operating basis
- Pre-tax, pre-provision return on assets of 2.09% on an operating basis
- Return on common equity of 10.9%
- Return on tangible common equity of 15.2% on an operating basis
- A provision for credit losses of
$19.8 million , which increased the allowance for loan losses to 1.04% of loans from 1.00% in the third quarter - Loan production of
$1.5 billion , resulting in loan growth of 12%, annualized for the quarter - Core transaction deposits were down
$915 million ; or 22% annualized - Net interest margin of 3.76% was up 19 basis points from the third quarter, due to increased interest rates and loan growth
- Mortgage closings of
$253 million compared to$522 million a year ago; mortgage rate locks of$364 million compared to$695 million a year ago - Noninterest income was up
$1.4 million on a linked quarter basis, primarily driven by positive marks on certain investments and offset by lower mortgage fees - Noninterest expenses increased by
$4.6 million compared to the third quarter on a GAAP basis and by$4.9 million on an operating basis, mostly due to lower deferred costs from lower mortgage loan volume and higherFDIC deposit insurance costs - Efficiency ratio of 48.0%, or 47.4% on an operating basis
- Net charge-offs of
$6.6 million , or 17 basis points as a percent of average loans, up 14 basis points from the net charge-offs experienced in the third quarter - Nonperforming assets of 0.18% of total assets, up 3 basis points compared to
September 30, 2022 - Quarterly common shareholder dividend of
$0.22 per share declared during the quarter, an increase of 10% year-over-year - After the end of the quarter, we completed the acquisition of
Progress Financial Corporation and its banking subsidiaryProgress Bank and Trust with$1.8 billion in assets onJanuary 3, 2023 ; financial returns are expected to be within our desired thresholds
Conference Call
United will hold a conference call on
Selected Financial Information (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Fourth Quarter 2022- 2021 Change | For the Twelve Months Ended | YTD 2022- 2021 Change | ||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2022 | 2021 | ||||||||||||||||||||||||||||
INCOME SUMMARY | ||||||||||||||||||||||||||||||||||
Interest revenue | $ | 240,831 | $ | 213,887 | $ | 187,378 | $ | 171,059 | $ | 143,768 | $ | 813,155 | $ | 578,794 | ||||||||||||||||||||
Interest expense | 30,943 | 14,113 | 8,475 | 7,267 | 6,213 | 60,798 | 29,760 | |||||||||||||||||||||||||||
Net interest revenue | 209,888 | 199,774 | 178,903 | 163,792 | 137,555 | 53 | % | 752,357 | 549,034 | 37 | % | |||||||||||||||||||||||
Provision for credit losses | 19,831 | 15,392 | 5,604 | 23,086 | (647 | ) | 63,913 | (37,550 | ) | |||||||||||||||||||||||||
Noninterest income | 33,354 | 31,922 | 33,458 | 38,973 | 37,177 | (10 | ) | 137,707 | 157,818 | (13 | ) | |||||||||||||||||||||||
Total revenue | 223,411 | 216,304 | 206,757 | 179,679 | 175,379 | 27 | 826,151 | 744,402 | 11 | |||||||||||||||||||||||||
Noninterest expenses | 117,329 | 112,755 | 120,790 | 119,275 | 109,156 | 7 | 470,149 | 396,639 | 19 | |||||||||||||||||||||||||
Income before income tax expense | 106,082 | 103,549 | 85,967 | 60,404 | 66,223 | 356,002 | 347,763 | |||||||||||||||||||||||||||
Income tax expense | 24,632 | 22,388 | 19,125 | 12,385 | 14,204 | 78,530 | 77,962 | |||||||||||||||||||||||||||
Net income | 81,450 | 81,161 | 66,842 | 48,019 | 52,019 | 277,472 | 269,801 | |||||||||||||||||||||||||||
Merger-related and other charges | 1,470 | 1,746 | 7,143 | 9,016 | 9,912 | 19,375 | 13,970 | |||||||||||||||||||||||||||
Income tax benefit of merger-related and other charges | (323 | ) | (385 | ) | (1,575 | ) | (1,963 | ) | (2,265 | ) | (4,246 | ) | (3,174 | ) | ||||||||||||||||||||
Net income - operating (1) | $ | 82,597 | $ | 82,522 | $ | 72,410 | $ | 55,072 | $ | 59,666 | 38 | $ | 292,601 | $ | 280,597 | 4 | ||||||||||||||||||
Pre-tax pre-provision income (5) | $ | 125,913 | $ | 118,941 | $ | 91,571 | $ | 83,490 | $ | 65,576 | 92 | $ | 419,915 | $ | 310,213 | 35 | ||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||
Diluted net income - GAAP | $ | 0.74 | $ | 0.74 | $ | 0.61 | $ | 0.43 | $ | 0.55 | 35 | $ | 2.52 | $ | 2.97 | (15 | ) | |||||||||||||||||
Diluted net income - operating (1) | 0.75 | 0.75 | 0.66 | 0.50 | 0.64 | 17 | 2.66 | 3.09 | (14 | ) | ||||||||||||||||||||||||
Common stock cash dividends declared | 0.22 | 0.22 | 0.21 | 0.21 | 0.20 | 10 | 0.86 | 0.78 | 10 | |||||||||||||||||||||||||
Book value | 24.38 | 23.78 | 23.96 | 24.38 | 23.63 | 3 | 24.38 | 23.63 | 3 | |||||||||||||||||||||||||
Tangible book value (3) | 17.13 | 16.52 | 16.68 | 17.08 | 18.42 | (7 | ) | 17.13 | 18.42 | (7 | ) | |||||||||||||||||||||||
Key performance ratios: | ||||||||||||||||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 10.86 | % | 11.02 | % | 9.31 | % | 6.80 | % | 9.32 | % | 9.54 | % | 13.14 | % | ||||||||||||||||||||
Return on common equity - operating (1)(2)(4) | 11.01 | 11.21 | 10.10 | 7.83 | 10.74 | 10.07 | 13.68 | |||||||||||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 15.20 | 15.60 | 14.20 | 11.00 | 13.93 | 14.04 | 17.33 | |||||||||||||||||||||||||||
Return on assets - GAAP (4) | 1.33 | 1.32 | 1.08 | 0.78 | 0.96 | 1.13 | 1.37 | |||||||||||||||||||||||||||
Return on assets - operating (1)(4) | 1.35 | 1.34 | 1.17 | 0.89 | 1.10 | 1.19 | 1.42 | |||||||||||||||||||||||||||
Return on assets -pre-tax pre-provision (4)(5) | 2.07 | 1.94 | 1.49 | 1.37 | 1.21 | 1.72 | 1.58 | |||||||||||||||||||||||||||
Return on assets -pre-tax pre-provision, excluding merger related and other charges (1)(4)(5) | 2.09 | 1.97 | 1.60 | 1.52 | 1.40 | 1.80 | 1.65 | |||||||||||||||||||||||||||
Net interest margin (fully taxable equivalent) (4) | 3.76 | 3.57 | 3.19 | 2.97 | 2.81 | 3.38 | 3.07 | |||||||||||||||||||||||||||
Efficiency ratio - GAAP | 47.95 | 48.41 | 56.58 | 57.43 | 62.12 | 52.31 | 55.80 | |||||||||||||||||||||||||||
Efficiency ratio - operating (1) | 47.35 | 47.66 | 53.23 | 53.09 | 56.48 | 50.16 | 53.83 | |||||||||||||||||||||||||||
Equity to total assets | 11.25 | 11.12 | 10.95 | 11.06 | 10.61 | 11.25 | 10.61 | |||||||||||||||||||||||||||
Tangible common equity to tangible assets (3) | 7.88 | 7.70 | 7.59 | 7.72 | 8.09 | 7.88 | 8.09 | |||||||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||||||||
Nonperforming assets (“NPAs”) | $ | 44,281 | $ | 35,511 | $ | 34,428 | $ | 40,816 | $ | 32,855 | 35 | $ | 44,281 | $ | 32,855 | 35 | ||||||||||||||||||
Allowance for credit losses - loans | 159,357 | 148,502 | 136,925 | 132,805 | 102,532 | 55 | 159,357 | 102,532 | 55 | |||||||||||||||||||||||||
Allowance for credit losses - total | 180,520 | 167,300 | 153,042 | 146,369 | 113,524 | 59 | 180,520 | 113,524 | 59 | |||||||||||||||||||||||||
Net charge-offs (recoveries) | 6,611 | 1,134 | (1,069 | ) | 2,978 | 248 | 9,654 | 38 | ||||||||||||||||||||||||||
Allowance for credit losses - loans to loans | 1.04 | % | 1.00 | % | 0.94 | % | 0.93 | % | 0.87 | % | 1.04 | % | 0.87 | % | ||||||||||||||||||||
Allowance for credit losses - total to loans | 1.18 | 1.12 | 1.05 | 1.02 | 0.97 | 1.18 | 0.97 | |||||||||||||||||||||||||||
Net charge-offs to average loans (4) | 0.17 | 0.03 | (0.03 | ) | 0.08 | 0.01 | 0.07 | — | ||||||||||||||||||||||||||
NPAs to total assets | 0.18 | 0.15 | 0.14 | 0.17 | 0.16 | 0.18 | 0.16 | |||||||||||||||||||||||||||
AT PERIOD END ($ in millions) | ||||||||||||||||||||||||||||||||||
Loans | $ | 15,335 | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | 30 | $ | 15,335 | $ | 11,760 | 30 | ||||||||||||||||||
Investment securities | 6,228 | 6,539 | 6,683 | 6,410 | 5,653 | 10 | 6,228 | 5,653 | 10 | |||||||||||||||||||||||||
Total assets | 24,009 | 23,688 | 24,213 | 24,374 | 20,947 | 15 | 24,009 | 20,947 | 15 | |||||||||||||||||||||||||
Deposits | 19,877 | 20,321 | 20,873 | 21,056 | 18,241 | 9 | 19,877 | 18,241 | 9 | |||||||||||||||||||||||||
Shareholders’ equity | 2,701 | 2,635 | 2,651 | 2,695 | 2,222 | 22 | 2,701 | 2,222 | 22 | |||||||||||||||||||||||||
Common shares outstanding (thousands) | 106,223 | 106,163 | 106,034 | 106,025 | 89,350 | 19 | 106,223 | 89,350 | 19 |
(1) Excludes merger-related and other charges. (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.
Non-GAAP Performance Measures Reconciliation Selected Financial Information (in thousands, except per share data) | ||||||||||||||||||||||||||||
2022 | 2021 | Twelve Months Ended | ||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | 2022 | 2021 | ||||||||||||||||||||||
Noninterest expense reconciliation | ||||||||||||||||||||||||||||
Noninterest expenses (GAAP) | $ | 117,329 | $ | 112,755 | $ | 120,790 | $ | 119,275 | $ | 109,156 | $ | 470,149 | $ | 396,639 | ||||||||||||||
Merger-related and other charges | (1,470 | ) | (1,746 | ) | (7,143 | ) | (9,016 | ) | (9,912 | ) | (19,375 | ) | (13,970 | ) | ||||||||||||||
Expenses - operating | $ | 115,859 | $ | 111,009 | $ | 113,647 | $ | 110,259 | $ | 99,244 | $ | 450,774 | $ | 382,669 | ||||||||||||||
Net income to operating income reconciliation | ||||||||||||||||||||||||||||
Net income (GAAP) | $ | 81,450 | $ | 81,161 | $ | 66,842 | $ | 48,019 | $ | 52,019 | $ | 277,472 | $ | 269,801 | ||||||||||||||
Merger-related and other charges | 1,470 | 1,746 | 7,143 | 9,016 | 9,912 | 19,375 | 13,970 | |||||||||||||||||||||
Income tax benefit of merger-related and other charges | (323 | ) | (385 | ) | (1,575 | ) | (1,963 | ) | (2,265 | ) | (4,246 | ) | (3,174 | ) | ||||||||||||||
Net income - operating | $ | 82,597 | $ | 82,522 | $ | 72,410 | $ | 55,072 | $ | 59,666 | $ | 292,601 | $ | 280,597 | ||||||||||||||
Net income to pre-tax pre-provision income reconciliation | ||||||||||||||||||||||||||||
Net income (GAAP) | $ | 81,450 | $ | 81,161 | $ | 66,842 | $ | 48,019 | $ | 52,019 | $ | 277,472 | $ | 269,801 | ||||||||||||||
Income tax expense | 24,632 | 22,388 | 19,125 | 12,385 | 14,204 | 78,530 | 77,962 | |||||||||||||||||||||
Provision for credit losses | 19,831 | 15,392 | 5,604 | 23,086 | (647 | ) | 63,913 | (37,550 | ) | |||||||||||||||||||
Pre-tax pre-provision income | $ | 125,913 | $ | 118,941 | $ | 91,571 | $ | 83,490 | $ | 65,576 | $ | 419,915 | $ | 310,213 | ||||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||||||||
Diluted income per common share (GAAP) | $ | 0.74 | $ | 0.74 | $ | 0.61 | $ | 0.43 | $ | 0.55 | $ | 2.52 | $ | 2.97 | ||||||||||||||
Merger-related and other charges | 0.01 | 0.01 | 0.05 | 0.07 | 0.09 | 0.14 | 0.12 | |||||||||||||||||||||
Diluted income per common share - operating | $ | 0.75 | $ | 0.75 | $ | 0.66 | $ | 0.50 | $ | 0.64 | $ | 2.66 | $ | 3.09 | ||||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 24.38 | $ | 23.78 | $ | 23.96 | $ | 24.38 | $ | 23.63 | $ | 24.38 | $ | 23.63 | ||||||||||||||
Effect of goodwill and other intangibles | (7.25 | ) | (7.26 | ) | (7.28 | ) | (7.30 | ) | (5.21 | ) | (7.25 | ) | (5.21 | ) | ||||||||||||||
Tangible book value per common share | $ | 17.13 | $ | 16.52 | $ | 16.68 | $ | 17.08 | $ | 18.42 | $ | 17.13 | $ | 18.42 | ||||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||||||||
Return on common equity (GAAP) | 10.86 | % | 11.02 | % | 9.31 | % | 6.80 | % | 9.32 | % | 9.54 | % | 13.14 | % | ||||||||||||||
Merger-related and other charges | 0.15 | 0.19 | 0.79 | 1.03 | 1.42 | 0.53 | 0.54 | |||||||||||||||||||||
Return on common equity - operating | 11.01 | 11.21 | 10.10 | 7.83 | 10.74 | 10.07 | 13.68 | |||||||||||||||||||||
Effect of goodwill and other intangibles | 4.19 | 4.39 | 4.10 | 3.17 | 3.19 | 3.97 | 3.65 | |||||||||||||||||||||
Return on tangible common equity - operating | 15.20 | % | 15.60 | % | 14.20 | % | 11.00 | % | 13.93 | % | 14.04 | % | 17.33 | % | ||||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.33 | % | 1.32 | % | 1.08 | % | 0.78 | % | 0.96 | % | 1.13 | % | 1.37 | % | ||||||||||||||
Merger-related and other charges | 0.02 | 0.02 | 0.09 | 0.11 | 0.14 | 0.06 | 0.05 | |||||||||||||||||||||
Return on assets - operating | 1.35 | % | 1.34 | % | 1.17 | % | 0.89 | % | 1.10 | % | 1.19 | % | 1.42 | % | ||||||||||||||
Return on assets to return on assets- pre-tax pre-provision reconciliation | ||||||||||||||||||||||||||||
Return on assets (GAAP) | 1.33 | % | 1.32 | % | 1.08 | % | 0.78 | % | 0.96 | % | 1.13 | % | 1.37 | % | ||||||||||||||
Income tax expense | 0.41 | 0.37 | 0.32 | 0.20 | 0.26 | 0.32 | 0.40 | |||||||||||||||||||||
Provision for credit losses | 0.33 | 0.25 | 0.09 | 0.39 | (0.01 | ) | 0.27 | (0.19 | ) | |||||||||||||||||||
Return on assets - pre-tax pre-provision | 2.07 | 1.94 | 1.49 | 1.37 | 1.21 | 1.72 | 1.58 | |||||||||||||||||||||
Merger-related and other charges | 0.02 | 0.03 | 0.11 | 0.15 | 0.19 | 0.08 | 0.07 | |||||||||||||||||||||
Return on assets - pre-tax pre-provision, excluding merger-related and other charges | 2.09 | % | 1.97 | % | 1.60 | % | 1.52 | % | 1.40 | % | 1.80 | % | 1.65 | % | ||||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||||||||
Efficiency ratio (GAAP) | 47.95 | % | 48.41 | % | 56.58 | % | 57.43 | % | 62.12 | % | 52.31 | % | 55.80 | % | ||||||||||||||
Merger-related and other charges | (0.60 | ) | (0.75 | ) | (3.35 | ) | (4.34 | ) | (5.64 | ) | (2.15 | ) | (1.97 | ) | ||||||||||||||
Efficiency ratio - operating | 47.35 | % | 47.66 | % | 53.23 | % | 53.09 | % | 56.48 | % | 50.16 | % | 53.83 | % | ||||||||||||||
Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||||||||
Equity to total assets (GAAP) | 11.25 | % | 11.12 | % | 10.95 | % | 11.06 | % | 10.61 | % | 11.25 | % | 10.61 | % | ||||||||||||||
Effect of goodwill and other intangibles | (2.97 | ) | (3.01 | ) | (2.96 | ) | (2.94 | ) | (2.06 | ) | (2.97 | ) | (2.06 | ) | ||||||||||||||
Effect of preferred equity | (0.40 | ) | (0.41 | ) | (0.40 | ) | (0.40 | ) | (0.46 | ) | (0.40 | ) | (0.46 | ) | ||||||||||||||
Tangible common equity to tangible assets | 7.88 | % | 7.70 | % | 7.59 | % | 7.72 | % | 8.09 | % | 7.88 | % | 8.09 | % |
Financial Highlights | ||||||||||||||||||||||
Loan Portfolio Composition at Period-End | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
2022 | 2021 | Linked Quarter Change | Year over Year Change | |||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||||||||||
LOANS BY CATEGORY | ||||||||||||||||||||||
Owner occupied commercial RE | $ | 2,735 | $ | 2,700 | $ | 2,681 | $ | 2,638 | $ | 2,322 | $ | 35 | $ | 413 | ||||||||
Income producing commercial RE | 3,262 | 3,299 | 3,273 | 3,328 | 2,601 | (37 | ) | 661 | ||||||||||||||
Commercial & industrial | 2,251 | 2,236 | 2,243 | 2,302 | 1,822 | 15 | 429 | |||||||||||||||
Paycheck protection program | 1 | 2 | 10 | 34 | 88 | (1 | ) | (87 | ) | |||||||||||||
Commercial construction | 1,598 | 1,514 | 1,514 | 1,482 | 1,015 | 84 | 583 | |||||||||||||||
Equipment financing | 1,374 | 1,281 | 1,211 | 1,148 | 1,083 | 93 | 291 | |||||||||||||||
Total commercial | 11,221 | 11,032 | 10,932 | 10,932 | 8,931 | 189 | 2,290 | |||||||||||||||
Residential mortgage | 2,355 | 2,149 | 1,997 | 1,826 | 1,638 | 206 | 717 | |||||||||||||||
Home equity lines of credit | 850 | 832 | 801 | 778 | 694 | 18 | 156 | |||||||||||||||
Residential construction | 443 | 423 | 381 | 368 | 359 | 20 | 84 | |||||||||||||||
Manufactured housing | 317 | 301 | 287 | 269 | — | 16 | 317 | |||||||||||||||
Consumer | 149 | 145 | 143 | 143 | 138 | 4 | 11 | |||||||||||||||
Total loans | $ | 15,335 | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | $ | 453 | $ | 3,575 | ||||||||
LOANS BY STATE | ||||||||||||||||||||||
$ | 4,051 | $ | 4,003 | $ | 3,960 | $ | 3,879 | $ | 3,778 | $ | 48 | $ | 273 | |||||||||
2,587 | 2,516 | 2,377 | 2,323 | 2,235 | 71 | 352 | ||||||||||||||||
2,186 | 2,117 | 2,006 | 1,879 | 1,895 | 69 | 291 | ||||||||||||||||
2,507 | 2,536 | 2,621 | 2,661 | 373 | (29 | ) | 2,134 | |||||||||||||||
1,308 | 1,259 | 1,235 | 1,208 | 1,148 | 49 | 160 | ||||||||||||||||
Commercial Banking Solutions | 2,696 | 2,451 | 2,342 | 2,366 | 2,331 | 245 | 365 | |||||||||||||||
Total loans | $ | 15,335 | $ | 14,882 | $ | 14,541 | $ | 14,316 | $ | 11,760 | $ | 453 | $ | 3,575 |
Financial Highlights | ||||||||||||||
Loan Portfolio Composition at Year-End | ||||||||||||||
(in millions) | ||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||||
LOANS BY CATEGORY | ||||||||||||||
Owner occupied commercial RE | $ | 2,735 | $ | 2,322 | $ | 2,090 | $ | 1,720 | $ | 1,648 | ||||
Income producing commercial RE | 3,262 | 2,601 | 2,541 | 2,008 | 1,812 | |||||||||
Commercial & industrial | 2,251 | 1,822 | 1,853 | 1,221 | 1,278 | |||||||||
Paycheck protection program | 1 | 88 | 646 | — | — | |||||||||
Commercial construction | 1,598 | 1,015 | 967 | 976 | 796 | |||||||||
Equipment financing | 1,374 | 1,083 | 864 | 745 | 565 | |||||||||
Total commercial | 11,221 | 8,931 | 8,961 | 6,670 | 6,099 | |||||||||
Residential mortgage | 2,355 | 1,638 | 1,285 | 1,118 | 1,049 | |||||||||
Home equity lines of credit | 850 | 694 | 697 | 661 | 694 | |||||||||
Residential construction | 443 | 359 | 281 | 236 | 211 | |||||||||
Manufactured housing | 317 | — | — | — | — | |||||||||
Consumer | 149 | 138 | 147 | 128 | 330 | |||||||||
Total loans | $ | 15,335 | $ | 11,760 | $ | 11,371 | $ | 8,813 | $ | 8,383 | ||||
LOANS BY STATE | ||||||||||||||
$ | 4,051 | $ | 3,778 | $ | 3,685 | $ | 3,606 | $ | 3,323 | |||||
2,587 | 2,235 | 1,947 | 1,708 | 1,645 | ||||||||||
2,186 | 1,895 | 1,281 | 1,156 | 1,072 | ||||||||||
2,507 | 373 | 415 | 421 | 477 | ||||||||||
1,308 | 1,148 | 1,435 | — | — | ||||||||||
Commercial Banking Solutions | 2,696 | 2,331 | 2,608 | 1,922 | 1,658 | |||||||||
Indirect auto | — | — | — | — | 208 | |||||||||
Total loans | $ | 15,335 | $ | 11,760 | $ | 11,371 | $ | 8,813 | $ | 8,383 |
Financial Highlights | |||||||||
Credit Quality | |||||||||
(in thousands) | |||||||||
2022 | |||||||||
Fourth Quarter | Third Quarter | Second Quarter | |||||||
NONACCRUAL LOANS | |||||||||
Owner occupied RE | $ | 523 | $ | 877 | $ | 1,876 | |||
Income producing RE | 3,885 | 2,663 | 7,074 | ||||||
Commercial & industrial | 14,470 | 11,108 | 4,548 | ||||||
Commercial construction | 133 | 150 | 208 | ||||||
Equipment financing | 5,438 | 3,198 | 3,249 | ||||||
Total commercial | 24,449 | 17,996 | 16,955 | ||||||
Residential mortgage | 10,919 | 10,424 | 12,228 | ||||||
Home equity lines of credit | 1,888 | 1,151 | 933 | ||||||
Residential construction | 405 | 104 | 198 | ||||||
Manufactured housing | 6,518 | 4,187 | 2,804 | ||||||
Consumer | 53 | 17 | 25 | ||||||
Total nonaccrual loans held for investment | 44,232 | 33,879 | 33,143 | ||||||
Nonaccrual loans HFS | — | 316 | 317 | ||||||
OREO and repossessed assets | 49 | 1,316 | 968 | ||||||
Total NPAs | $ | 44,281 | $ | 35,511 | $ | 34,428 |
2022 | |||||||||||||||||||||
Fourth Quarter | Third Quarter | Second 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 BY CATEGORY | |||||||||||||||||||||
Owner occupied RE | $ | (130 | ) | (0.02 | )% | $ | (90 | ) | (0.01 | )% | $ | (1,496 | ) | (0.23 | )% | ||||||
Income producing RE | (113 | ) | (0.01 | ) | 176 | 0.02 | (116 | ) | (0.01 | ) | |||||||||||
Commercial & industrial | 4,577 | 0.81 | (744 | ) | (0.13 | ) | (302 | ) | (0.05 | ) | |||||||||||
Commercial construction | (77 | ) | (0.02 | ) | 10 | — | (144 | ) | (0.04 | ) | |||||||||||
Equipment financing | 1,658 | 0.50 | 1,121 | 0.36 | 907 | 0.31 | |||||||||||||||
Total commercial | 5,915 | 0.21 | 473 | 0.02 | (1,151 | ) | (0.04 | ) | |||||||||||||
Residential mortgage | (33 | ) | (0.01 | ) | (66 | ) | (0.01 | ) | (51 | ) | (0.01 | ) | |||||||||
Home equity lines of credit | (89 | ) | (0.04 | ) | (102 | ) | (0.05 | ) | (346 | ) | (0.18 | ) | |||||||||
Residential construction | (23 | ) | (0.02 | ) | (109 | ) | (0.11 | ) | (76 | ) | (0.08 | ) | |||||||||
Manufactured housing | 246 | 0.32 | 220 | 0.30 | 135 | 0.20 | |||||||||||||||
Consumer | 595 | 1.61 | 718 | 1.98 | 420 | 1.18 | |||||||||||||||
Total | $ | 6,611 | 0.17 | $ | 1,134 | 0.03 | $ | (1,069 | ) | (0.03 | ) | ||||||||||
(1) Annualized. |
Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) | ||||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 195,771 | $ | 144,244 | ||||
Interest-bearing deposits in banks | 316,082 | 2,147,266 | ||||||
Federal funds and other short-term investments | 135,000 | 27,000 | ||||||
Cash and cash equivalents | 646,853 | 2,318,510 | ||||||
Debt securities available-for-sale | 3,614,333 | 4,496,824 | ||||||
Debt securities held-to-maturity (fair value | 2,613,648 | 1,156,098 | ||||||
Loans held for sale at fair value | 13,600 | 44,109 | ||||||
Loans and leases held for investment | 15,334,627 | 11,760,346 | ||||||
Less allowance for credit losses - loans and leases | (159,357 | ) | (102,532 | ) | ||||
Loans and leases, net | 15,175,270 | 11,657,814 | ||||||
Premises and equipment, net | 298,456 | 245,296 | ||||||
Bank owned life insurance | 299,297 | 217,713 | ||||||
Accrued interest receivable | 72,807 | 42,999 | ||||||
Net deferred tax asset | 129,313 | 41,322 | ||||||
Derivative financial instruments | 50,636 | 42,480 | ||||||
779,248 | 472,407 | |||||||
Other assets | 315,423 | 211,199 | ||||||
Total assets | $ | 24,008,884 | $ | 20,946,771 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 7,643,081 | $ | 6,956,981 | ||||
NOW and interest-bearing demand | 4,350,878 | 4,252,209 | ||||||
Money market | 4,510,680 | 4,183,354 | ||||||
Savings | 1,456,337 | 1,215,779 | ||||||
Time | 1,781,482 | 1,442,498 | ||||||
Brokered | 134,049 | 190,358 | ||||||
Total deposits | 19,876,507 | 18,241,179 | ||||||
Short-term borrowings | 158,933 | — | ||||||
550,000 | — | |||||||
Long-term debt | 324,663 | 247,360 | ||||||
Derivative financial instruments | 99,543 | 25,145 | ||||||
Accrued expenses and other liabilities | 298,564 | 210,842 | ||||||
Total liabilities | 21,308,210 | 18,724,526 | ||||||
Shareholders' equity: | ||||||||
Preferred stock, preference; 4,000 shares issued and outstanding | 96,422 | 96,422 | ||||||
Common stock, | 106,223 | 89,350 | ||||||
Common stock issuable; 607,128 and 595,705 shares, respectively | 12,307 | 11,288 | ||||||
Capital surplus | 2,306,366 | 1,721,007 | ||||||
Retained earnings | 508,844 | 330,654 | ||||||
Accumulated other comprehensive loss | (329,488 | ) | (26,476 | ) | ||||
Total shareholders’ equity | 2,700,674 | 2,222,245 | ||||||
Total liabilities and shareholders’ equity | $ | 24,008,884 | $ | 20,946,771 |
Consolidated Statements of Income (Unaudited) (in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest revenue: | ||||||||||||||||
Loans, including fees | $ | 197,330 | $ | 123,473 | $ | 673,402 | $ | 505,734 | ||||||||
Investment securities, including tax exempt of | 40,781 | 19,442 | 131,824 | 70,972 | ||||||||||||
Deposits in banks and short-term investments | 2,720 | 853 | 7,929 | 2,088 | ||||||||||||
Total interest revenue | 240,831 | 143,768 | 813,155 | 578,794 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits: | ||||||||||||||||
NOW and interest-bearing demand | 9,688 | 1,310 | 17,312 | 5,468 | ||||||||||||
Money market | 11,244 | 1,102 | 18,274 | 5,380 | ||||||||||||
Savings | 356 | 60 | 693 | 217 | ||||||||||||
Time | 3,498 | 392 | 5,820 | 3,780 | ||||||||||||
Deposits | 24,786 | 2,864 | 42,099 | 14,845 | ||||||||||||
Short-term borrowings | 480 | — | 507 | — | ||||||||||||
1,424 | 1 | 1,424 | 3 | |||||||||||||
Long-term debt | 4,253 | 3,348 | 16,768 | 14,912 | ||||||||||||
Total interest expense | 30,943 | 6,213 | 60,798 | 29,760 | ||||||||||||
Net interest revenue | 209,888 | 137,555 | 752,357 | 549,034 | ||||||||||||
Provision for credit losses | 19,831 | (647 | ) | 63,913 | (37,550 | ) | ||||||||||
Net interest revenue after provision for credit losses | 190,057 | 138,202 | 688,444 | 586,584 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees | 9,519 | 8,613 | 38,163 | 33,868 | ||||||||||||
Mortgage loan gains and related fees | 3,104 | 10,910 | 32,524 | 58,446 | ||||||||||||
Wealth management fees | 5,835 | 6,117 | 23,594 | 18,998 | ||||||||||||
Gains from other loan sales, net | 1,504 | 3,761 | 10,730 | 11,267 | ||||||||||||
Other lending and loan servicing fees | 2,487 | 2,357 | 10,005 | 9,427 | ||||||||||||
Securities (losses) gains, net | (184 | ) | 42 | (3,872 | ) | 83 | ||||||||||
Other | 11,089 | 5,377 | 26,563 | 25,729 | ||||||||||||
Total noninterest income | 33,354 | 37,177 | 137,707 | 157,818 | ||||||||||||
Total revenue | 223,411 | 175,379 | 826,151 | 744,402 | ||||||||||||
Noninterest expenses: | ||||||||||||||||
Salaries and employee benefits | 68,143 | 60,986 | 276,205 | 241,443 | ||||||||||||
Occupancy | 8,866 | 7,489 | 36,247 | 28,619 | ||||||||||||
Communications and equipment | 10,516 | 7,850 | 38,234 | 29,829 | ||||||||||||
3,098 | 1,878 | 9,894 | 7,398 | |||||||||||||
Professional fees | 5,496 | 6,080 | 20,166 | 20,589 | ||||||||||||
Lending and loan servicing expense | 1,604 | 2,351 | 9,350 | 10,859 | ||||||||||||
Outside services - electronic banking | 3,954 | 2,670 | 12,583 | 9,481 | ||||||||||||
Postage, printing and supplies | 2,441 | 1,939 | 8,749 | 7,110 | ||||||||||||
Advertising and public relations | 2,052 | 1,760 | 8,384 | 5,910 | ||||||||||||
Amortization of intangibles | 1,619 | 1,103 | 6,826 | 4,045 | ||||||||||||
Merger-related and other charges | 1,470 | 9,912 | 19,375 | 13,970 | ||||||||||||
Other | 8,070 | 5,138 | 24,136 | 17,386 | ||||||||||||
Total noninterest expenses | 117,329 | 109,156 | 470,149 | 396,639 | ||||||||||||
Net income before income taxes | 106,082 | 66,223 | 356,002 | 347,763 | ||||||||||||
Income tax expense | 24,632 | 14,204 | 78,530 | 77,962 | ||||||||||||
Net income | $ | 81,450 | $ | 52,019 | $ | 277,472 | $ | 269,801 | ||||||||
Preferred stock dividends | 1,718 | 1,718 | 6,875 | 6,875 | ||||||||||||
Earnings allocated to participating securities | 461 | 317 | 1,462 | 1,657 | ||||||||||||
Net income available to common shareholders | $ | 79,271 | $ | 49,984 | $ | 269,135 | $ | 261,269 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.74 | $ | 0.56 | $ | 2.52 | $ | 2.97 | ||||||||
Diluted | 0.74 | 0.55 | 2.52 | 2.97 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 106,795 | 89,916 | 106,661 | 87,940 | ||||||||||||
Diluted | 106,916 | 90,089 | 106,778 | 88,097 |
Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended (dollars in thousands, fully taxable equivalent (FTE)) | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (FTE) (1)(2) | $ | 15,002,836 | $ | 197,502 | 5.22 | % | $ | 11,689,412 | $ | 123,250 | 4.18 | % | |||||||||
Taxable securities (3) | 6,325,165 | 38,220 | 2.42 | 5,156,563 | 17,149 | 1.33 | |||||||||||||||
Tax-exempt securities (FTE) (1)(3) | 490,838 | 3,440 | 2.80 | 387,638 | 3,080 | 3.18 | |||||||||||||||
Federal funds sold and other interest-earning assets | 453,090 | 2,912 | 2.55 | 2,308,241 | 1,322 | 0.23 | |||||||||||||||
Total interest-earning assets (FTE) | 22,271,929 | 242,074 | 4.32 | 19,541,854 | 144,801 | 2.94 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Allowance for loan losses | (152,551 | ) | (103,167 | ) | |||||||||||||||||
Cash and due from banks | 217,873 | 141,967 | |||||||||||||||||||
Premises and equipment | 297,523 | 245,869 | |||||||||||||||||||
Other assets (3) | 1,166,424 | 1,036,760 | |||||||||||||||||||
Total assets | $ | 23,801,198 | $ | 20,863,283 | |||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW and interest-bearing demand | $ | 4,385,916 | 9,688 | 0.88 | $ | 4,080,621 | 1,310 | 0.13 | |||||||||||||
Money market | 4,628,585 | 11,244 | 0.96 | 4,323,851 | 1,102 | 0.10 | |||||||||||||||
Savings | 1,480,908 | 356 | 0.10 | 1,187,134 | 60 | 0.02 | |||||||||||||||
Time | 1,708,311 | 3,143 | 0.73 | 1,461,231 | 567 | 0.15 | |||||||||||||||
Brokered time deposits | 51,258 | 355 | 2.75 | 65,556 | (175 | ) | (1.06 | ) | |||||||||||||
Total interest-bearing deposits | 12,254,978 | 24,786 | 0.80 | 11,118,393 | 2,864 | 0.10 | |||||||||||||||
Federal funds purchased and other borrowings | 47,487 | 480 | 4.01 | 51 | — | — | |||||||||||||||
135,000 | 1,424 | 4.18 | 1,426 | 1 | 0.28 | ||||||||||||||||
Long-term debt | 324,590 | 4,253 | 5.20 | 247,251 | 3,348 | 5.37 | |||||||||||||||
Total borrowed funds | 507,077 | 6,157 | 4.82 | 248,728 | 3,349 | 5.34 | |||||||||||||||
Total interest-bearing liabilities | 12,762,055 | 30,943 | 0.96 | 11,367,121 | 6,213 | 0.22 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing deposits | 7,993,816 | 6,918,279 | |||||||||||||||||||
Other liabilities | 383,270 | 354,665 | |||||||||||||||||||
Total liabilities | 21,139,141 | 18,640,065 | |||||||||||||||||||
Shareholders’ equity | 2,662,057 | 2,223,218 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 23,801,198 | $ | 20,863,283 | |||||||||||||||||
Net interest revenue (FTE) | $ | 211,131 | $ | 138,588 | |||||||||||||||||
Net interest-rate spread (FTE) | 3.36 | % | 2.72 | % | |||||||||||||||||
Net interest margin (FTE) (4) | 3.76 | % | 2.81 | % |
(1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, 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, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of | |
(4) | Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets. |
Average Consolidated Balance Sheets and Net Interest Analysis For the Twelve Months Ended (dollars in thousands, fully taxable equivalent (FTE)) | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||
Assets: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans, net of unearned income (FTE) (1)(2) | $ | 14,571,746 | $ | 673,491 | 4.62 | % | $ | 11,485,876 | $ | 504,015 | 4.39 | % | ||||||||
Taxable securities (3) | 6,284,603 | 121,501 | 1.93 | 4,446,712 | 61,994 | 1.39 | ||||||||||||||
Tax-exempt securities (FTE) (1)(3) | 496,327 | 13,865 | 2.79 | 382,915 | 12,059 | 3.15 | ||||||||||||||
Federal funds sold and other interest-earning assets | 1,065,057 | 9,104 | 0.85 | 1,680,151 | 4,784 | 0.28 | ||||||||||||||
Total interest-earning assets (FTE) | 22,417,733 | 817,961 | 3.65 | 17,995,654 | 582,852 | 3.24 | ||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||
Allowance for loan losses | (135,144 | ) | (121,586 | ) | ||||||||||||||||
Cash and due from banks | 204,852 | 139,728 | ||||||||||||||||||
Premises and equipment | 288,044 | 230,276 | ||||||||||||||||||
Other assets (3) | 1,275,263 | 1,013,956 | ||||||||||||||||||
Total assets | $ | 24,050,748 | $ | 19,258,028 | ||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
NOW and interest-bearing demand | $ | 4,486,263 | 17,312 | 0.39 | $ | 3,610,601 | 5,468 | 0.15 | ||||||||||||
Money market | 4,900,667 | 18,274 | 0.37 | 3,972,358 | 5,380 | 0.14 | ||||||||||||||
Savings | 1,482,599 | 693 | 0.05 | 1,095,071 | 217 | 0.02 | ||||||||||||||
Time | 1,693,307 | 5,152 | 0.30 | 1,529,072 | 3,663 | 0.24 | ||||||||||||||
Brokered time deposits | 61,636 | 668 | 1.08 | 67,230 | 117 | 0.17 | ||||||||||||||
Total interest-bearing deposits | 12,624,472 | 42,099 | 0.33 | 10,274,332 | 14,845 | 0.14 | ||||||||||||||
Federal funds purchased and other borrowings | 13,004 | 507 | 3.90 | 44 | — | — | ||||||||||||||
34,027 | 1,424 | 4.18 | 1,195 | 3 | 0.25 | |||||||||||||||
Long-term debt | 323,102 | 16,768 | 5.19 | 276,492 | 14,912 | 5.39 | ||||||||||||||
Total borrowed funds | 370,133 | 18,699 | 5.05 | 277,731 | 14,915 | 5.37 | ||||||||||||||
Total interest-bearing liabilities | 12,994,605 | 60,798 | 0.47 | 10,552,063 | 29,760 | 0.28 | ||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Noninterest-bearing deposits | 7,967,321 | 6,276,094 | ||||||||||||||||||
Other liabilities | 377,221 | 322,566 | ||||||||||||||||||
Total liabilities | 21,339,147 | 17,150,723 | ||||||||||||||||||
Shareholders’ equity | 2,711,601 | 2,107,305 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 24,050,748 | $ | 19,258,028 | ||||||||||||||||
Net interest revenue (FTE) | $ | 757,163 | $ | 553,092 | ||||||||||||||||
Net interest-rate spread (FTE) | 3.18 | % | 2.96 | % | ||||||||||||||||
Net interest margin (FTE) (4) | 3.38 | % | 3.07 | % |
(1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, 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, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of | |
(4) | Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. |
About
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 “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, excluding merger-related and other charges,” “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, and include statements related to the expected financial returns of the Progress acquisition. 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 (1) the risk that the cost savings and any revenue synergies from the Progress acquisition may not be realized or take longer than anticipated to be realized, (2) disruption of customer, supplier, employee or other business partner relationships as a result of the Progress acquisition, (3) the possibility that the costs, fees, expenses and charges related to the acquisition of Progress may be greater than anticipated, (4) reputational risk and the reaction of the companies’ customers, suppliers, employees or other business partners to the acquisition of Progress, (5) the risks relating to the integration of Progress’ operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risks associated with United’s pursuit of future acquisitions, (7) the risk of expansion into new geographic or product markets, (8) the dilution caused by United’s issuance of additional shares of its common stock in the Progress acquisition, and (9) general competitive, economic, political 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
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 or Progress.
United qualifies all forward-looking statements by these cautionary statements.
For more information:
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
![](https://ml.globenewswire.com/media/Y2M0NDgyZjAtZDY4My00OTJmLTgxMWQtYzY1MzhhZjE5YWViLTEwMTk2MDQ=/tiny/United-Community-Banks-Inc-.png)
2023 GlobeNewswire, Inc., source