United Community Banks Inc.

11/07/2025 | Press release | Distributed by Public on 11/07/2025 12:43

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following is a discussion of our financial condition at September 30, 2025 and December 31, 2024 and our results of operations for the three and nine months ended September 30, 2025 and 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. The following discussion and analysis should be read along with our consolidated financial statements and related notes included in Part I - Item 1 of this Report, "Cautionary Note Regarding Forward-Looking Statements" and the risk factors discussed in our 2024 10-K and the other reports we have filed with the SEC after we filed the 2024 10-K.
Unless the context otherwise requires, the terms "we," "our," "us" refer to United on a consolidated basis.
Overview
We offer a wide array of commercial and consumer banking services and investment advisory solutions through a network of 199 banking offices in Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Our equipment finance and SBA/USDA lending businesses operate throughout the United States. At September 30, 2025, we had consolidated total assets of $28.1 billion and 3,058 full-time equivalent employees.
Recent Developments
On September 15, 2025, we redeemed all outstanding shares of our Series I preferred stock, which had a carrying value of $88.3 million. The redemption reflects our ongoing capital management strategy.
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act, which includes a broad range of tax reform provisions affecting businesses. Of note, the 21% corporate tax rate provided by the Tax Cuts and Jobs Act of 2017, which was scheduled to sunset on December 31, 2025, was made permanent with the passing of this law.
On May 1, 2025, we completed the acquisition of ANB, which was headquartered in Oakland Park, Florida where it operated one banking location. We acquired $447 million of assets, including goodwill, and assumed $381 million of liabilities in the acquisition, which included $301 million in loans and $374 million in deposits. Our operating results for the three and nine months ended September 30, 2025 include ANB's operating results for the period subsequent to the acquisition date.
Results of Operations
We reported net income and diluted earnings per common share of $91.5 million and $0.70, respectively, for the third quarter of 2025, compared to $47.3 million and $0.38, respectively, for the same period in 2024. For the nine months ended September 30, 2025, we reported net income and diluted earnings per common share of $242 million and $1.91, respectively, compared to $177 million and $1.43, respectively, in the same periods of 2024. The third quarter and first nine months of 2024 included a $27.2 million loss on the sale of substantially all of our manufactured housing loan portfolio which lowered diluted earnings per common share for those periods by approximately 18 cents, affecting comparability between 2025 and 2024.
Net income - operating and diluted earnings per common share - operating for the third quarter of 2025 were $94.2 million and $0.75, respectively, compared to $70.5 million and $0.57, respectively, for the third quarter of 2024. For the nine months ended September 30, 2025, we reported net income - operating and diluted earnings per common share - operating of $249 million and $2.00, respectively, compared to $206 million and $1.67, respectively, for the same periods of 2024. Net income - operating for the periods of 2025 excludes merger-related and other charges, while the periods of 2024 also exclude additional items, notably the loss on the sale of the manufactured housing loans of $27.2 million discussed above. See Table 1 of MD&A for the Non-GAAP Performance Measures Reconciliation for further detail.
Net interest revenue for the third quarter and first nine months of 2025 was $234 million and $671 million, respectively, compared to $209 million and $617 million, respectively, for the same periods of 2024. The increase in net interest revenue was mostly driven by lower deposit interest expense.
Net interest margin for the third quarter and first nine months of 2025 increased to 3.58% and 3.48%, respectively, from 3.33% and 3.30%, respectively, for the comparable 2024 periods. The increases in net interest margin were primarily due to the larger decrease in interest rates paid on deposits compared to the decrease in interest rates earned on loans.
We recorded a provision for credit losses of $7.91 million and $35.1 million for the third quarter and first nine months of 2025, respectively. The nine months ended September 30, 2025 included $2.49 million for the initial ACL for ANB non-PCD loans and unfunded commitments. Provision expense for the comparable periods of 2024 was $14.4 million and $39.6 million, respectively, and included $9.89 million for the Hurricane Helene reserve.
Noninterest income of $43.2 million and $114 million for the third quarter and first nine months of 2025 increased by $35.1 million and $29.3 million, respectively, compared to the same periods of 2024. The periods of 2024 included a $27.2 million loss on the manufactured housing loan portfolio sale. In addition, the third quarter of 2025 included more favorable fair value adjustments to our mortgage servicing asset, which resulted in a $3.00 million increase in mortgage loan gains and related fees compared to the third quarter of 2024.
Noninterest expense of $151 million and $440 million in the third quarter and first nine months of 2025 were up 5% and 1%, respectively, compared to the same periods of 2024. Salaries and employee benefits expense contributed to much of the increase for the three and nine months of 2025, reflecting the acquisition of ANB and annual merit increases as well as higher incentive compensation reflecting improvement in financial performance. The increase for the nine months ended September 30, 2025 was partially offset by a decrease in other noninterest expense as the comparable period of 2024 included a $5.10 million goodwill write-down related to the sale of FinTrust.
Results for the third quarter and first nine months of 2025 are discussed in further detail throughout the following sections of MD&A.
Critical Accounting Estimates
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Our accounting and reporting estimates are in accordance with GAAP and conform to customary practices within the banking industry. Estimates that are susceptible to significant changes include accounting for the ACL and fair value measurements, both of which require significant judgments by management. Actual results could differ significantly from those estimates. Also, different assumptions in the application of these accounting estimates could result in material changes in our consolidated financial position or consolidated results of operations. Our critical accounting estimates are discussed in MD&A in our 2024 10-K.
Non-GAAP Reconciliation and Explanation
This Report contains financial information determined by methods other than in accordance with GAAP. Such non-GAAP financial information includes the following measures: "tangible book value per common share," and "tangible common equity to tangible assets." In addition, management presents non-GAAP operating performance measures, which exclude merger-related and other items that are not part of our ongoing business operations. Operating performance measures include "noninterest income - operating," "noninterest expense - operating," "net income - operating," "diluted income per common share - operating," "tangible book value per common share," "return on common equity - operating," "return on tangible common equity - operating," "return on assets - operating," "efficiency ratio - operating" and "tangible common equity to tangible assets" We have developed internal policies and procedures to accurately capture and account for merger-related and other charges and those charges are reviewed with the Audit Committee of our Board each quarter. We use these non-GAAP measures because we believe they provide useful supplemental information for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. We believe these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as a comparison to financial results for prior periods. Nevertheless, non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP. In addition, because non-GAAP measures are not standardized, it may not be possible to compare our non-GAAP measures to similarly titled measures used 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 in Table 1 of MD&A.
UNITED COMMUNITY BANKS, INC.
Table 1 - Financial Highlights
(dollars in thousands, except per share data) 2025 2024
Third Quarter
2025 - 2024 Change
For the Nine Months Ended September 30, YTD Change
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
2025 2024
INCOME SUMMARY
Interest revenue $ 353,850 $ 347,365 $ 335,357 $ 344,962 $ 349,086 $ 1,036,572 $ 1,032,779
Interest expense 120,221 121,834 123,336 134,629 139,900 365,391 415,744
Net interest revenue 233,629 225,531 212,021 210,333 209,186 12 % 671,181 617,035 9 %
Noninterest income 43,219 34,708 35,656 40,522 8,091 n/m 113,583 84,234 35
Total revenue 276,848 260,239 247,677 250,855 217,277 27 784,764 701,269 12
Provision for credit losses 7,907 11,818 15,419 11,389 14,428 (45) 35,144 39,562 (11)
Noninterest expense 150,868 147,919 141,099 143,056 143,065 5 439,886 435,111 1
Income before income tax expense 118,073 100,502 91,159 96,410 59,784 97 309,734 226,596 37
Income tax expense 26,579 21,769 19,746 20,606 12,437 114 68,094 50,003 36
Net income 91,494 78,733 71,413 75,804 47,347 93 241,640 176,593 37
Non-operating items 3,468 4,833 1,297 2,203 29,385 n/m 9,598 38,065 n/m
Income tax benefit of non-operating items (751) (1,047) (281) (471) (6,276) n/m (2,079) (8,231) n/m
Net income - operating (1)
$ 94,211 $ 82,519 $ 72,429 $ 77,536 $ 70,456 34 $ 249,159 $ 206,427 21
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP $ 0.70 $ 0.63 $ 0.58 $ 0.61 $ 0.38 84 $ 1.91 $ 1.43 34
Diluted net income - operating (1)
0.75 0.66 0.59 0.63 0.57 32 2.00 1.67 20
Cash dividends declared 0.25 0.24 0.24 0.24 0.24 4 0.73 0.70 4
Book value 29.44 28.89 28.42 27.87 27.68 6 29.44 27.68 6
Tangible book value (3)
21.59 21.00 20.58 20.00 19.66 10 21.59 19.66 10
Key performance ratios:
Return on common equity - GAAP (2)(4)
9.20 % 8.45 % 7.89 % 8.40 % 5.20 % 8.53 % 6.61 %
Return on common equity - operating (1)(2)(4)
9.83 8.87 8.01 8.60 7.82 8.92 7.76
Return on tangible common equity - operating(1)(2)(3)(4)
13.56 12.34 11.21 12.12 11.17 12.57 11.18
Return on assets - GAAP (4)
1.29 1.11 1.02 1.06 0.67 1.16 0.85
Return on assets - operating (1)(4)
1.33 1.16 1.04 1.08 1.01 1.19 0.99
Net interest margin (FTE) (4)
3.58 3.50 3.36 3.26 3.33 3.48 3.30
Efficiency ratio - GAAP 54.30 56.69 56.74 56.05 65.51 55.86 61.76
Efficiency ratio - operating (1)
53.05 54.84 56.22 55.18 57.37 54.64 57.84
Equity to total assets 12.78 12.86 12.56 12.38 12.45 12.78 12.45
Tangible common equity to tangible assets (3)
9.71 9.45 9.18 8.97 8.93 9.71 8.93
ASSET QUALITY
NPAs $ 97,916 $ 83,959 $ 93,290 $ 115,635 $ 114,960 (15) $ 97,916 $ 114,960 (15)
ACL - loans 215,791 216,500 211,974 206,998 205,290 5 215,791 205,290 5
Net charge-offs 7,676 8,225 9,607 9,517 23,651 n/m 25,508 48,173 n/m
ACL - loans to loans 1.13 % 1.14 % 1.15 % 1.14 % 1.14 % 1.13 % 1.14 %
Net charge-offs to average loans (4)
0.16 0.18 0.21 0.21 0.52 0.18 0.35
NPAs to total assets 0.35 0.30 0.33 0.42 0.42 0.35 0.42
AT PERIOD END ($ in millions)
Loans $ 19,175 $ 18,921 $ 18,425 $ 18,176 $ 17,964 7 $ 19,175 $ 17,964 7
Investment securities 6,163 6,382 6,661 6,804 6,425 (4) 6,163 6,425 (4)
Total assets 28,143 28,086 27,874 27,720 27,373 3 28,143 27,373 3
Deposits 24,021 23,963 23,762 23,461 23,253 3 24,021 23,253 3
Shareholders' equity 3,597 3,613 3,501 3,432 3,407 6 3,597 3,407 6
Common shares outstanding (thousands) 121,553 121,431 119,514 119,364 119,283 2 121,553 119,283 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 AOCI. (3)Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized.
UNITED COMMUNITY BANKS, INC.
Table 1 (Continued) - Financial Highlights
Non-GAAP Performance Measures Reconciliation
(dollars in thousands, except per share data)
2025 2024 For the Nine Months Ended September 30,
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
2025 2024
Noninterest income reconciliation
Noninterest income (GAAP) $ 43,219 $ 34,708 $ 35,656 $ 40,522 $ 8,091 $ 113,583 $ 84,234
Loss on sale of manufactured housing loans - - - - 27,209 - 27,209
Gain on lease termination - - - - - - (2,400)
Noninterest income - operating $ 43,219 $ 34,708 $ 35,656 $ 40,522 $ 35,300 $ 113,583 $ 109,043
Noninterest expense reconciliation
Noninterest expense (GAAP) $ 150,868 $ 147,919 $ 141,099 $ 143,056 $ 143,065 $ 439,886 $ 435,111
Loss on sale of FinTrust, including goodwill impairment - - - - - - (5,100)
FDIC special assessment - - - - - - (1,736)
Merger-related and other charges (3,468) (4,833) (1,297) (2,203) (2,176) (9,598) (6,420)
Noninterest expense - operating $ 147,400 $ 143,086 $ 139,802 $ 140,853 $ 140,889 $ 430,288 $ 421,855
Net income to operating income reconciliation
Net income (GAAP) $ 91,494 $ 78,733 $ 71,413 $ 75,804 $ 47,347 $ 241,640 $ 176,593
Loss on sale of manufactured housing loans - - - - 27,209 - 27,209
Gain on lease termination - - - - - - (2,400)
Loss on sale of FinTrust, including goodwill impairment - - - - - - 5,100
FDIC special assessment - - - - - - 1,736
Merger-related and other charges 3,468 4,833 1,297 2,203 2,176 9,598 6,420
Income tax benefit of non-operating items (751) (1,047) (281) (471) (6,276) (2,079) (8,231)
Net income - operating $ 94,211 $ 82,519 $ 72,429 $ 77,536 $ 70,456 $ 249,159 $ 206,427
Diluted income per common share reconciliation
Diluted income per common share (GAAP) $ 0.70 $ 0.63 $ 0.58 $ 0.61 $ 0.38 $ 1.91 $ 1.43
Loss on sale of manufactured housing loans - - - - 0.18 - 0.18
Gain on lease termination - - - - - - (0.02)
Loss on sale of FinTrust, including goodwill impairment - - - - - - 0.03
FDIC special assessment - - - - - - 0.01
Merger-related and other charges 0.02 0.03 0.01 0.02 0.01 0.06 0.04
Deemed dividend on preferred stock redemption 0.03 - - - - 0.03 -
Diluted income per common share - operating $ 0.75 $ 0.66 $ 0.59 $ 0.63 $ 0.57 $ 2.00 $ 1.67
Book value per common share reconciliation
Book value per common share (GAAP) $ 29.44 $ 28.89 $ 28.42 $ 27.87 $ 27.68 $ 29.44 $ 27.68
Effect of goodwill and other intangibles (7.85) (7.89) (7.84) (7.87) (8.02) (7.85) (8.02)
Tangible book value per common share $ 21.59 $ 21.00 $ 20.58 $ 20.00 $ 19.66 $ 21.59 $ 19.66
Return on tangible common equity reconciliation
Return on common equity (GAAP) 9.20 % 8.45 % 7.89 % 8.40 % 5.20 % 8.53 % 6.61 %
Loss on sale of manufactured housing loans - - - - 2.43 - 0.82
Gain on lease termination - - - - - - (0.07)
Loss on sale of FinTrust, including goodwill impairment - - - - - - 0.16
FDIC special assessment - - - - - - 0.05
Merger-related and other charges 0.29 0.42 0.12 0.20 0.19 0.27 0.19
Deemed dividend on preferred stock redemption 0.34 - - - - 0.12 -
Return on common equity - operating 9.83 8.87 8.01 8.60 7.82 8.92 7.76
Effect of goodwill and other intangibles 3.73 3.47 3.20 3.52 3.35 3.65 3.42
Return on tangible common equity - operating 13.56 % 12.34 % 11.21 % 12.12 % 11.17 % 12.57 % 11.18 %
UNITED COMMUNITY BANKS, INC.
Table 1 (Continued) - Financial Highlights
Non-GAAP Performance Measures Reconciliation
(dollars in thousands, except per share data)
2025 2024 For the Nine Months Ended September 30,
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
2025 2024
Return on assets reconciliation
Return on assets (GAAP) 1.29 % 1.11 % 1.02 % 1.06 % 0.67 % 1.16 % 0.85 %
Loss on sale of manufactured housing loans - - - - 0.31 - 0.10
Gain on lease termination - - - - - - (0.01)
Loss on sale of FinTrust, including goodwill impairment - - - - - - 0.02
FDIC special assessment - - - - - - 0.01
Merger-related and other charges 0.04 0.05 0.02 0.02 0.03 0.03 0.02
Return on assets - operating 1.33 % 1.16 % 1.04 % 1.08 % 1.01 % 1.19 % 0.99 %
Efficiency ratio reconciliation
Efficiency ratio (GAAP) 54.30 % 56.69 % 56.74 % 56.05 % 65.51 % 55.86 % 61.76 %
Loss on sale of manufactured housing loans - - - - (7.15) - (2.25)
Gain on lease termination - - - - - - 0.21
Loss on sale of FinTrust, including goodwill impairment - - - - - - (0.73)
FDIC special assessment - - - - - - (0.24)
Merger-related and other charges (1.25) (1.85) (0.52) (0.87) (0.99) (1.22) (0.91)
Efficiency ratio - operating 53.05 % 54.84 % 56.22 % 55.18 % 57.37 % 54.64 % 57.84 %
Tangible common equity to tangible assets reconciliation
Equity to total assets (GAAP) 12.78 % 12.86 % 12.56 % 12.38 % 12.45 % 12.78 % 12.45 %
Effect of goodwill and other intangibles (3.07) (3.10) (3.06) (3.09) (3.20) (3.07) (3.20)
Effect of preferred equity - (0.31) (0.32) (0.32) (0.32) - (0.32)
Tangible common equity to tangible assets 9.71 % 9.45 % 9.18 % 8.97 % 8.93 % 9.71 % 8.93 %
Net Interest Revenue
For the quarter:
FTE net interest revenue for the third quarter of 2025 was $235 million, an increase of $24.4 million from the same period in 2024. Net interest spread and net interest margin were 2.73% and 3.58%, respectively, which were up 43 basis points and 25 basis points, respectively, compared to the third quarter of 2024. Improvement in the net interest spread and net interest margin resulted from cuts of 125 basis points in the federal funds rate beginning in September of 2024, which drove decreases in funding costs, and to a lesser extent, loan yields.
For the nine months ended:
FTE net interest revenue for the first nine months of 2025 and 2024 was $674 million and $620 million, respectively. During the first nine months of 2025, our net interest spread increased 35 basis points and our net interest margin increased by 18 basis points compared to the same period of 2024. Changes in net interest revenue and related metrics for the nine months ended 2025 were a result of the same factors affecting the quarter.
Table 2 - Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
(dollars in thousands, (FTE))
2025 2024
Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)
$ 19,010,663 $ 297,725 6.21 % $ 18,051,741 $ 291,164 6.42 %
Taxable securities(3)
6,217,693 51,522 3.31 6,182,164 51,284 3.32
Tax-exempt securities (FTE) (1)(3)
351,528 2,249 2.56 361,359 2,292 2.54
Federal funds sold and other interest-earning assets 413,678 3,389 3.25 505,792 5,440 4.28
Total interest-earning assets (FTE) 25,993,562 354,885 5.42 25,101,056 350,180 5.55
Noninterest-earning assets:
Allowance for credit losses (220,805) (215,008)
Cash and due from banks 206,772 206,995
Premises and equipment 397,490 399,262
Other assets (3)
1,664,648 1,615,468
Total assets $ 28,041,667 $ 27,107,773
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand $ 5,825,997 35,050 2.39 $ 5,797,845 43,401 2.98
Money market 6,907,894 50,661 2.91 6,342,455 56,874 3.57
Savings 1,107,509 641 0.23 1,126,774 672 0.24
Time 3,656,172 31,602 3.43 3,465,980 34,560 3.97
Brokered time deposits 50,529 521 4.09 50,364 642 5.07
Total interest-bearing deposits 17,548,101 118,475 2.68 16,783,418 136,149 3.23
Federal funds purchased and other borrowings 2,284 25 4.34 1,899 27 5.66
Federal Home Loan Bank advances - - - 11 - -
Long-term debt 155,197 1,721 4.40 323,544 3,724 4.58
Total borrowed funds 157,481 1,746 4.40 325,454 3,751 4.59
Total interest-bearing liabilities 17,705,582 120,221 2.69 17,108,872 139,900 3.25
Noninterest-bearing liabilities:
Noninterest-bearing deposits 6,366,723 6,239,926
Other liabilities 334,443 391,574
Total liabilities 24,406,748 23,740,372
Shareholders' equity 3,634,919 3,367,401
Total liabilities and shareholders' equity $ 28,041,667 $ 27,107,773
Net interest revenue (FTE) $ 234,664 $ 210,280
Net interest-rate spread (FTE) 2.73 % 2.30 %
Net interest margin (FTE) (4)
3.58 % 3.33 %
(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 $1.04 million and $1.09 million, respectively, for the three months ended September 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 losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $223 million in 2025 and $295 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.
Table 3 - Average Consolidated Balance Sheets and Net Interest Analysis
For the Nine Months Ended September 30,
(dollars in thousands, (FTE))
2025 2024
Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (FTE) (1)(2)
$ 18,632,384 $ 859,678 6.17 % $ 18,187,790 $ 866,502 6.36 %
Taxable securities (3)
6,480,641 162,885 3.35 5,988,368 144,363 3.21
Tax-exempt securities (FTE)(1)(3)
354,115 6,730 2.53 363,692 6,876 2.52
Federal funds sold and other interest-earning assets 422,123 10,288 3.26 559,786 18,256 4.36
Total interest-earning assets (FTE) 25,889,263 1,039,581 5.37 25,099,636 1,035,997 5.51
Non-interest-earning assets:
Allowance for loan losses (217,050) (214,372)
Cash and due from banks 210,027 210,982
Premises and equipment 397,395 392,561
Other assets (3)
1,637,493 1,613,118
Total assets $ 27,917,128 $ 27,101,925
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW and interest-bearing demand $ 6,002,702 109,396 2.44 $ 5,913,566 133,522 3.02
Money market 6,713,585 149,805 2.98 6,092,649 160,883 3.53
Savings 1,133,078 2,722 0.32 1,159,982 2,065 0.24
Time 3,545,792 93,029 3.51 3,535,343 106,199 4.01
Brokered time deposits 50,488 1,593 4.22 50,343 1,726 4.58
Total interest-bearing deposits 17,445,645 356,545 2.73 16,751,883 404,395 3.22
Federal funds purchased and other borrowings 29,865 1,215 5.44 2,001 87 5.81
Federal Home Loan Bank advances 12,824 433 4.51 5 - -
Long-term debt 215,440 7,198 4.47 324,414 11,262 4.64
Total borrowed funds 258,129 8,846 4.58 326,420 11,349 4.64
Total interest-bearing liabilities 17,703,774 365,391 2.76 17,078,303 415,744 3.25
Noninterest-bearing liabilities:
Noninterest-bearing deposits 6,304,792 6,306,919
Other liabilities 350,211 394,323
Total liabilities 24,358,777 23,779,545
Shareholders' equity 3,558,351 3,322,380
Total liabilities and shareholders' equity $ 27,917,128 $ 27,101,925
Net interest revenue (FTE) $ 674,190 $ 620,253
Net interest-rate spread (FTE) 2.61 % 2.26 %
Net interest margin (FTE) (4)
3.48 % 3.30 %
(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 $3.01 million and $3.22 million, respectively, for the nine months ended September 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 $244 million and $320 million in 2025 and 2024, respectively, 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.
Noninterest Income
The following table presents the components of noninterest income for the periods indicated.
Table 4 - Noninterest Income
(dollars in thousands)
Three Months Ended
September 30, 		Change Nine Months Ended
September 30, 		Change
2025 2024 Amount Percent 2025 2024 Amount Percent
Service charges and fees:
Overdraft fees $ 3,573 $ 3,603 $ (30) (1) % $ 9,894 $ 9,977 $ (83) (1) %
ATM and debit card fees 4,232 3,833 399 10 11,987 11,277 710 6
Other service charges and fees 3,595 3,052 543 18 9,176 9,118 58 1
Total service charges and fees 11,400 10,488 912 9 31,057 30,372 685 2
Mortgage loan gains and related fees 7,098 3,520 3,578 n/m 18,590 17,830 760 4
Wealth management fees 4,757 6,338 (1,581) (25) 13,622 19,037 (5,415) (28)
Net gains (losses) on sales of other loans 2,385 (25,700) 28,085 n/m 5,776 (22,867) 28,643 n/m
Lending and loan servicing fees 4,235 3,512 723 21 12,090 11,050 1,040 9
Securities gains, net 49 - 49 n/m 341 - 341 n/m
Other noninterest income:
Customer derivative fees 1,454 1,139 315 28 3,611 1,577 2,034 n/m
Other investment income 2,233 1,182 1,051 n/m 2,304 4,130 (1,826) n/m
BOLI 3,557 2,571 986 38 7,692 7,375 317 4
Treasury management income 2,197 1,755 442 25 6,155 4,943 1,212 25
Other 3,854 3,286 568 17 12,345 10,787 1,558 14
Total other noninterest income 13,295 9,933 3,362 34 32,107 28,812 3,295 11
Total noninterest income $ 43,219 $ 8,091 $ 35,128 n/m $ 113,583 $ 84,234 $ 29,349 35
The increase in mortgage loan gains and related fees for the three months ended September 30, 2025 compared to the same period of 2024 was primarily a result of more favorable fair value adjustments to our mortgage servicing asset which provided an increase of $3.00 million compared to 2024. The following table provides an overview of mortgage metrics for the periods presented.
Table 5 - Mortgage Loan Metrics
(dollars in thousands)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 % Change 2025 2024 % Change
Mortgage rate locks $ 377,494 $ 306,281 23 % $ 1,066,455 $ 860,793 24 %
Mortgage loans sold $ 174,859 $ 171,692 2 $ 491,020 $ 442,282 11
Mortgage loans originated:
Purchases $ 241,159 $ 212,470 14 $ 656,026 $ 551,755 19
Refinances 41,497 26,186 58 98,892 72,737 36
Total $ 282,656 $ 238,656 18 $ 754,918 $ 624,492 21
The decrease in wealth management fees reflects the decrease in assets under management and advisement as a result of the FinTrust sale in the fourth quarter of 2024. Assets under management and advisement totaled $3.46 billion and $5.59 billion at September 30, 2025 and 2024, respectively.
The change in gains on sales of other loans for the three and nine months ended September 30, 2025 was primarily driven by the periods of 2024 including a $27.2 million loss on the sale of substantially all of our manufactured housing portfolio.
Customer derivative fees for the three and nine months ended September 30, 2025 were up due to stronger loan growth and increased product demand, attributable to the lower interest rate environment compared to the same periods of 2024.
During the third quarter of 2025, other investment income increased, due to stronger investment performance, particularly our limited partnership and mutual fund investments, compared to the same period of 2024. The decrease for the nine months ended September 30, 2025 was driven by weaker market conditions during the first six months of 2025, particularly related to our mutual fund and other equity investments. Our other investment portfolio includes mutual funds, equity securities, fintech and other limited partnership investments. Gains and losses from these investments are generally unrealized.
The increase in BOLI earnings during the third quarter of 2025 was driven by higher death benefits received during the period compared to the third quarter of 2024.
The increase in other noninterest income was largely driven by a positive change in collateral charges related to derivative positions.
Provision for Credit Losses
We recorded provisions for credit losses of $7.91 million and $35.1 million for the three and nine months ended September 30, 2025, compared to $14.4 million and $39.6 million for the same periods of 2024. The provision expense for the three and nine months ended September 30, 2025 reflected the partial release of the 2024 Hurricane Helene reserve of $2.54 million and $7.92 million, respectively. In addition, provision expense for the nine months ended September 30, 2025 included $2.49 million for ANB's non-PCD loans and unfunded commitments. The three and nine months ended September 30, 2024 included $9.89 million of provision expense related to the establishment of the Hurricane Helene reserve.
Additional discussion on credit quality and the ACL is included in the "Asset Quality and Risk Elements" section of MD&A in this Report.
Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated.
Table 6 - Noninterest Expense
(dollars in thousands)
Three Months Ended
September 30, 		Change Nine Months Ended
September 30, 		Change
2025 2024 Amount Percent 2025 2024 Amount Percent
Salaries and employee benefits $ 90,667 $ 83,533 $ 7,134 9 % $ 261,931 $ 254,336 $ 7,595 3 %
Communications and equipment 13,937 12,626 1,311 10 40,968 36,534 4,434 12
Occupancy 11,502 11,311 191 2 33,366 33,466 (100) -
Advertising and public relations 2,053 2,041 12 1 6,815 6,401 414 6
Postage, printing and supplies 2,735 2,477 258 10 7,791 7,376 415 6
Professional fees 6,282 6,432 (150) (2) 17,822 18,464 (642) (3)
Lending and loan servicing expense 2,428 2,227 201 9 6,745 6,068 677 11
Outside services - electronic banking 3,543 4,433 (890) (20) 9,876 10,163 (287) (3)
FDIC assessments and other regulatory charges 4,846 5,003 (157) (3) 14,233 17,036 (2,803) (16)
Amortization of intangibles 3,313 3,528 (215) (6) 9,891 11,209 (1,318) (12)
Merger-related and other charges 3,468 2,176 1,292 n/m 9,598 6,420 3,178 n/m
Other 6,094 7,278 (1,184) (16) 20,850 27,638 (6,788) (25)
Total noninterest expense $ 150,868 $ 143,065 $ 7,803 5 $ 439,886 $ 435,111 $ 4,775 1
The increase in salaries and employee benefits for the third quarter and first nine months of 2025 compared to the same periods of 2024 was mostly driven by annual merit increases that went into effect on April 1, 2025, higher performance-related incentive compensation and the addition of ANB employees on May 1, 2025.
Communications and equipment expense for the third quarter and first nine months of 2025 compared to the same periods of 2024 increased primarily due to new software contracts and incremental software contract costs on existing contracts, including volume based increases.
FDIC assessments and other regulatory charges decreased for the first nine months of 2025 as the comparative period of 2024 included $1.74 million of FDIC special assessment accrued expense.
The decrease in amortization of intangibles was primarily driven by the natural decline in amortization expense of our core deposit intangibles over time. This decrease was partially offset by ANB core deposit intangible amortization expense starting in May 2025.
The increase in merger-related and other charges for the third quarter and first nine months of 2025 was primarily driven by ANB merger-related costs.
Other noninterest expense for the nine months ended 2025 decreased compared to the same period of last year as 2024 included a goodwill write-down of $5.10 million related to the sale of FinTrust. In addition, for the three and nine months ended September 30, 2025, fraud losses declined compared to the same periods of 2024.
Income Tax Expense
The following table presents income tax expense and the effective tax rate for the periods indicated.
Table 7 - Income Tax Expense
(dollars in thousands)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
Income before income taxes $ 118,073 $ 59,784 $ 309,734 $ 226,596
Income tax expense 26,579 12,437 68,094 50,003
Effective tax rate 22.5 % 20.8 % 22.0 % 22.1 %
Balance Sheet Review
Total assets at September 30, 2025 and December 31, 2024 were $28.1 billion and $27.7 billion, respectively. Total liabilities at September 30, 2025 and December 31, 2024 were $24.5 billion and $24.3 billion, respectively. Shareholders' equity totaled $3.60 billion and $3.43 billion at September 30, 2025 and December 31, 2024, respectively.
Loans
Our loan portfolio is our largest category of interest-earning assets. The following table presents the loan portfolio and the allocation of the ACL by loan type for the periods indicated.
Table 8 - Loan Portfolio Composition and ACL Allocation
(dollars in thousands)
September 30, 2025 December 31, 2024
Loans % of portfolio ACL ACL to Loans Loans % of portfolio ACL ACL to Loans
Owner occupied CRE $ 3,678,286 19 % $ 20,659 0.56 % $ 3,398,217 19 % $ 19,873 0.58 %
Income producing CRE 4,534,407 24 46,211 1.02 4,360,920 24 41,427 0.95
Commercial & industrial 2,592,971 14 44,481 1.72 2,428,376 13 35,441 1.46
Commercial construction 1,733,473 9 13,841 0.80 1,655,710 9 16,370 0.99
Equipment financing 1,807,907 9 45,104 2.49 1,662,501 9 47,415 2.85
Total commercial 14,347,044 75 170,296 1.19 13,505,724 74 160,526 1.19
Residential mortgage 3,197,857 17 31,273 0.98 3,231,479 18 32,259 1.00
Home equity 1,252,087 6 11,356 0.91 1,064,874 6 11,247 1.06
Residential construction 178,468 1 1,767 0.99 178,405 1 1,672 0.94
Manufactured housing(2)
- - - - 1,723 - 450 26.12
Consumer 191,509 1 1,099 0.57 186,448 1 844 0.45
Total (1)
$ 19,166,965 $ 215,791 1.13 $ 18,168,653 $ 206,998 1.14
(1) Loans presented exclude fair value hedge basis adjustments.
(2)In 2025, manufactured housing loans were included in consumer loans.
The following table provides industry concentrations of our non-owner occupied CRE loans, which include the income producing CRE portfolio and non-owner occupied commercial construction loans as of the dates indicated.
Table 9 - Industry Concentrations of Non-Owner Occupied CRE Loans
(dollars in thousands)
September 30, 2025 December 31, 2024
Total
% of loans in category
Total
% of loans in category
Retail $ 1,380,779 23 % $ 1,221,168 21 %
Office 897,582 15 836,419 15
Multifamily 895,952 15 973,065 17
Warehouse and industrial 636,075 11 584,659 10
Hotel 516,336 9 485,093 9
Builder finance 374,514 6 329,349 6
Rental 1-4 family 326,078 5 325,189 6
Self storage 287,780 5 257,770 5
Other 241,409 4 250,261 4
Senior care 239,578 4 311,112 5
Land 168,932 3 140,527 2
Total
$ 5,965,015 100 % $ 5,714,612 100 %
Asset Quality and Risk Elements
We manage asset quality and control credit risk through review and oversight of the loan portfolio as well as adherence to policies designed to promote sound underwriting and loan monitoring practices. Our credit risk management function is responsible for monitoring asset quality and Board approved portfolio concentration limits, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures.
The ACL reflects our assessment of the life of loan expected credit losses in the loan portfolio and unfunded loan commitments. This assessment involves uncertainty and judgment and is subject to change in future periods. See the Critical Accounting Estimatessection of MD&A in our 2024 10-K for additional information on the ACL.
The ACL for loans at September 30, 2025 totaled $216 million compared to $207 million at December 31, 2024 and the ACL for loans as a percentage of total loans decreased slightly to 1.13% from 1.14%. The increase in the ACL was primarily attributable to loan growth and the initial allowance established for ANB, partially offset by a reduction in the Hurricane Helene related allowance based on our latest assessment of potential storm related-loan losses. The initial ACL for ANB loans totaled $3.65 million, $1.25 million of which was reclassified from the fair value of PCD loans with no impact to earnings. The Hurricane Helene related reserve totaled $1.88 million and $9.80 million at September 30, 2025 and December 31, 2024, respectively. Our ACL for unfunded commitments, which totaled $12.5 million, increased $2.09 million compared to December 31, 2024 mostly due to an increase in our construction commitments.
The following table provides a summary of net charge-offs to average loans for the periods indicated.
Table 10 - Net Charge-offs to Average Loans
(dollars in thousands)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
Net charge-offs (recoveries)
Owner occupied CRE $ 2,497 $ (184) $ 3,093 $ 181
Income producing CRE (106) 1,409 1,545 4,582
Commercial & industrial (1,132) 4,577 2,342 9,764
Commercial construction 491 36 442 8
Equipment financing 5,487 5,268 15,492 17,132
Residential mortgage (259) 32 53 (91)
Home equity 19 36 (115) (45)
Residential construction 12 111 222 256
Manufactured housing - 11,556 - 14,275
Consumer 667 810 2,434 2,111
Total net charge-offs $ 7,676 $ 23,651 $ 25,508 $ 48,173
Average loans
Owner occupied CRE $ 3,596,119 $ 3,305,391 $ 3,465,214 $ 3,290,993
Income producing CRE 4,558,960 4,152,421 4,518,396 4,163,423
Commercial & industrial 2,547,228 2,302,556 2,502,676 2,348,293
Commercial construction 1,759,235 1,896,616 1,712,303 1,918,449
Equipment financing 1,771,095 1,590,140 1,716,466 1,561,859
Residential mortgage 3,203,555 3,260,024 3,218,995 3,236,507
Home equity 1,206,131 998,335 1,135,693 977,571
Residential construction 178,286 199,850 176,550 237,167
Manufactured housing - 161,246 - 271,492
Consumer 190,054 185,162 186,091 182,036
Total average loans $ 19,010,663 $ 18,051,741 $ 18,632,384 $ 18,187,790
Net charge-offs to average loans (1)
Owner occupied CRE 0.28 % (0.02) % 0.12 % 0.01 %
Income producing CRE (0.01) 0.13 0.05 0.15
Commercial & industrial (0.18) 0.79 0.13 0.56
Commercial construction 0.11 0.01 0.03 -
Equipment financing 1.23 1.32 1.21 1.47
Residential mortgage (0.03) - - -
Home equity 0.01 0.01 (0.01) (0.01)
Residential construction 0.03 0.22 0.17 0.14
Manufactured housing - 28.51 - 7.02
Consumer 1.39 1.74 1.75 1.55
Total 0.16 0.52 0.18 0.35
(1)Annualized.
We completed the sale of substantially all of our manufactured housing loan portfolio in the third quarter of 2024. In connection with the sale, we recorded an $11.0 million charge-off in the third quarter and first nine months of 2024. For the third quarter and first nine
months of 2025, the average balance and net charge-offs related to the remaining manufactured housing loans are reflected in consumer loans.
Nonperforming Assets
The table below summarizes NPAs for the periods indicated. NPAs include nonaccrual loans, OREO and repossessed assets. Notably, we had two payoffs of senior care loans (included in income producing CRE) totaling $14.6 million.
Table 11 - NPAs
(dollars in thousands)
September 30,
2025 		December 31,
2024 		$ Change
Nonaccrual loans:
Owner occupied CRE $ 10,275 $ 11,674 $ (1,399)
Income producing CRE 10,884 25,357 (14,473)
Commercial & industrial 25,754 29,339 (3,585)
Commercial construction 3,198 7,400 (4,202)
Equipment financing 9,716 8,925 791
Total commercial 59,827 82,695 (22,868)
Residential mortgage 28,978 24,615 4,363
Home equity 5,234 4,630 604
Residential construction 1,241 57 1,184
Manufactured housing (1)
- 1,444 (1,444)
Consumer 1,163 138 1,025
Total
96,443 113,579 (17,136)
OREO and repossessed assets 1,473 2,056 (583)
Total NPAs $ 97,916 $ 115,635 $ (17,719)
Nonaccrual loans as a percentage of total loans 0.50 % 0.62 %
NPAs as a percentage of total assets 0.35 0.42
ACL - loans to nonaccrual loans coverage ratio 2.24 1.82
(1)In 2025, manufactured housing loans were included in consumer loans.
Investment Securities
The composition of the investment securities portfolio reflects our investment strategy of maintaining an appropriate level of liquidity while providing a relatively stable source of revenue. The investment securities portfolio also provides a balance to interest rate risk and credit risk in other categories of the balance sheet while providing a vehicle for the investment of available funds, furnishing liquidity, and supplying securities to pledge as required collateral for certain deposits and borrowings. The table below summarizes the carrying value of our securities portfolio and other relevant portfolio metrics including weighted-average life and effective duration as of the dates presented. Effective duration represents the expected change in the price of a security when rates change by 100 basis points.
Table 12 - Investment Securities
(dollars in thousands)
September 30, 2025 December 31, 2024
Carrying Value
% of portfolio
Carrying Value
% of portfolio
$ Change
AFS
$ 3,889,263 63 % $ 4,436,291 65 % $ (547,028)
HTM
2,274,099 37 2,368,107 35 (94,008)
Total investment securities
$ 6,163,362 $ 6,804,398 $ (641,036)
Investment securities as a % of total assets
22 % 25 %
Weighted average life
5.4 years 5.7 years
Swap adjusted effective duration
3.6 % 3.5 %
Effective duration
4.0 3.9
We utilize fair value hedges on a portion of our AFS securities portfolio in order to mitigate the impact of potential future unrealized losses on our tangible common equity. Gains and losses related to the hedge and hedged item are reflected in investment securities interest income. The changes in the fair value of the hedge and the hedged item substantially offset each other. See Note 6 to the financial statements for further detail.
At September 30, 2025, HTM debt securities had a fair value of $1.94 billion, indicating net unrealized losses of $337 million (pre-tax). Additional unrealized losses on HTM debt securities of $53.5 million (pre-tax) were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022. Unrealized losses were primarily attributable to changes in interest rates.
See Note 4 to the consolidated financial statements for additional detail.
Goodwill and Other Intangible Assets
As of September 30, 2025 and December 31, 2024, goodwill and other intangibles totaled $971 million and $957 million, respectively. In connection with the acquisition of ANB in the second quarter of 2025, we recorded goodwill and a core deposit intangible of $18.0 million and $6.29 million, respectively. See Notes 3 and 7 to the financial statements for further information.
Deposits
Customer deposits are the primary source of funds for the continued growth of our earning assets. We believe our high level of service, as evidenced by our strong customer satisfaction scores, is instrumental in attracting and retaining customer deposit accounts, which has continued to contribute to our organic deposit growth. Since December 31, 2024, customer deposits increased $572 million, which includes deposits of $374 million acquired in the ANB transaction as of the acquisition date. As of September 30, 2025, we had approximately $9.85 billion of uninsured deposits, of which $2.73 billion was collateralized by investment securities.
Table 13 - Deposits
(dollars in thousands)
September 30, 2025 December 31, 2024
Balance
% of Total Balance % of Total
Noninterest-bearing demand $ 6,444,067 27 % $ 6,211,182 26 %
NOW and interest-bearing demand 5,860,653 24 6,141,342 26
Money market and savings 7,886,624 33 7,498,735 32
Time 3,673,718 15 3,441,424 15
Total customer deposits 23,865,062 99 23,292,683 99
Brokered deposits 155,556 1 168,292 1
Total deposits $ 24,020,618 $ 23,460,975
Borrowing Activities
At September 30, 2025 and December 31, 2024, we had long-term debt outstanding of $155 million and $254 million, respectively, which includes senior debentures, subordinated debentures, and trust preferred securities. During the second quarter of 2025, we redeemed our $100 million 2030 senior debentures. On September 30, 2025, holders of our $35.0 million senior debt were notified that the debt would be redeemed on November 14, 2025. At September 30, 2025 there were no short-term borrowings outstanding. At December 31, 2024, there were $195 million in short-term borrowings outstanding. The need to utilize wholesale funding sources has decreased because our liquidity needs have been met by our deposit and cash balances.
Contractual Obligations and Off-Balance Sheet Arrangements
There have not been any material changes to our contractual obligations and off-balance sheet arrangements since December 31, 2024.
Interest Rate Sensitivity Management
Interest rate sensitivity is a function of the repricing characteristics of the portfolio of assets and liabilities. Repricing characteristics are the time frames within which the interest rates on interest-earning assets and interest-bearing liabilities are subject to change either at replacement, repricing or maturity.
Management uses an asset/liability simulation model to measure the potential change in net interest revenue over time using multiple interest rate scenarios. Our modeling is based on the 12-month impact on net interest revenue simulations with various interest rate shocks and ramps, which are compared to a base scenario that assumes rates remain unchanged. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the ramp scenarios, rates change by 25 basis points per month until they reach the predetermined levels.
The following table presents our interest sensitivity position at the dates indicated. The scenario results presented assume parallel movements in the yield curve, which may differ from actual future curve behavior. Other than an assumption for the runoff of estimated surge deposits, which is assumed to be replaced with higher cost wholesale funding, this presentation generally assumes no change in deposit portfolio size or composition.
Table 14 - Interest Sensitivity
Increase (Decrease) in Net Interest Revenue from Base Scenario at
September 30, 2025 December 31, 2024
Change in Rates Shock Ramp Shock Ramp
200 basis point increase 3.32 % 1.61 % 2.01 % 0.92 %
100 basis point increase 1.83 1.15 1.19 0.66
100 basis point decrease (3.02) (2.00) (2.27) (1.46)
200 basis point decrease (7.24) (3.17) (6.00) (2.38)
The change in results from December 31, 2024 to September 30, 2025 reflects more floating interest rate loans and a slight shortening of asset duration to address rising interest rate risk concerns. In addition, the balance sheet became slightly more asset sensitive at September 30, 2025 due to higher cash balances on hand at quarter-end.
Liquidity Management
The Bank's main source of liquidity is customer interest-bearing and noninterest-bearing deposit accounts. Liquidity is also available from wholesale funding sources consisting primarily of repurchase agreements, Federal funds purchased, FHLB advances, and brokered deposits. These sources of liquidity are generally short-term in nature and are used as necessary to fund asset growth and meet other short-term liquidity needs. As part of our liquidity management, we focus on maximizing the amount of securities and loans available as collateral for contingent liquidity sources and calibrating our assumptions in our liquidity stress test on an ongoing basis, particularly as it relates to deposit duration. At September 30, 2025 and December 31, 2024, we had sufficient liquid funds and qualifying collateral to support additional borrowings, which are detailed in the table below.
Table 15 - Liquid Funds and Unused Borrowing Capacity
(in thousands)
September 30, 2025 December 31, 2024
Available liquid funds:
Cash and cash equivalents $ 613,431 $ 519,873
Availability of borrowings (1):
FHLB 1,951,358 1,917,905
Federal Reserve - Discount Window 2,425,183 2,267,139
Unpledged securities available as collateral for additional borrowings 3,661,185 3,603,885
(1)Based on collateral pledged.
In addition, because the Holding Company is a separate entity and apart from the Bank, it must provide for its own liquidity. The Holding Company is responsible for the payment of dividends declared for its common and preferred shareholders, and interest and principal on any outstanding debt or trust preferred securities. The Holding Company currently has sufficient liquid assets to meet these obligations. Holding Company liquidity is maintained at a level of at least 125% of the next 12 months of forecasted cash obligations.
In the opinion of management, our liquidity position at September 30, 2025 was sufficient to meet our expected cash flow requirements for the foreseeable future. See the consolidated statement of cash flows for further detail.
Capital Resources and Dividends
Shareholders' equity at September 30, 2025 was $3.60 billion, an increase of $165 million from December 31, 2024 primarily due to year-to-date earnings, other comprehensive income and the issuance of stock for the ANB acquisition, partially offset by the redemption of our preferred stock and dividends declared on common and preferred stock.
The following table shows capital ratios, as calculated under applicable regulatory guidelines, at September 30, 2025 and December 31, 2024. As of September 30, 2025, capital levels remained characterized as "well-capitalized" under regulatory requirements in effect at the time. Additional information related to capital ratios is provided in Note 11 to the consolidated financial statements.
Table 16 - Capital Ratios
United Community Banks, Inc.
(Consolidated) 		United Community Bank
Minimum Well-
Capitalized 		Minimum Capital Plus Capital Conservation Buffer September 30,
2025 		December 31,
2024 		September 30,
2025 		December 31,
2024
Risk-based ratios:
CET1 capital 4.5 % 6.5 % 7.0 % 13.44 % 13.27 % 12.48 % 13.05 %
Tier 1 capital 6.0 8.0 8.5 13.44 13.72 12.48 13.05
Total capital 8.0 10.0 10.5 14.79 15.17 13.53 14.08
Leverage ratio 4.0 5.0 N/A 10.26 9.96 9.52 9.46
The following table shows capital composition as of September 30, 2025 and December 31, 2024.
Table 17 - Capital Composition under Basel III
(in thousands)
United Community Banks, Inc. (Consolidated) United Community Bank
September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024
Total common shareholders' equity $ 3,596,851 $ 3,343,861 $ 3,381,511 $ 3,282,263
CECL transitional amount - 3,334 - 3,334
Goodwill (925,119) (907,090) (925,119) (907,090)
Intangibles, other than goodwill and mortgage servicing rights, net of associated DTLs (39,474) (42,334) (39,474) (42,334)
DTAs arising from net operating loss and tax credit carryforwards (4,441) (2,554) (3,248) (1,988)
Net unrealized losses on AFS securities 129,697 177,645 128,961 176,777
Accumulated net gains on cash flow hedges (6,276) (9,705) - -
Net unrealized losses on HTM securities that are included in AOCI 40,612 45,129 40,612 45,129
Other (111) (150) (111) (150)
CET1 capital 2,791,739 2,608,136 2,583,132 2,555,941
Preferred stock, net of issuance cost - 88,266 - -
Tier 1 capital 2,791,739 2,696,402 2,583,132 2,555,941
Tier 2 capital instruments 65,000 85,000 - -
Qualifying ACL 216,436 200,871 216,436 200,870
Total capital $ 3,073,175 $ 2,982,273 $ 2,799,568 $ 2,756,811
Effect of Inflation and Changing Prices
A bank's asset and liability structure is substantially different from that of an industrial firm in that primarily all assets and liabilities of a bank are monetary in nature with relatively little investment in fixed assets or inventories. Management believes the effect of inflation on financial results depends on our ability to react to changes in interest rates, and by such reaction, reduce the inflationary effect on performance. We have an asset/liability management program to manage interest rate sensitivity. In addition, periodic reviews of banking services and products are conducted to adjust pricing in view of current and expected costs.
United Community Banks Inc. published this content on November 07, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 07, 2025 at 18:43 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]