United Community Banks, Inc. announced net income of $47.3 million for the third quarter of 2024, with diluted earnings per share (GAAP) of $0.38. On an operating basis, diluted earnings per share reached $0.57, marking a 27% increase from the third quarter of the previous year. This operating performance was primarily driven by higher net interest income and a lower provision for credit losses.
The quarter's results included a $21.4 million after-tax impact, or $0.18 per share, from the strategic sale of $318 million in manufactured housing loans. This divestiture was a deliberate move to exit a long-dated and heavily subprime business, reducing the bank's risk profile and freeing up capital for other growth opportunities. Additionally, the company recorded a $9.9 million Hurricane Helene related loan loss provision to increase reserves on $383 million of loans in impacted North Carolina counties.
The bank reported annualized loan growth of 1.5% when excluding the manufactured housing portfolio sale, alongside a 5% annualized increase in customer deposits, totaling $262 million. United Community Banks also maintained robust capital ratios, with a preliminary Common Equity Tier 1 (CET1) ratio of 13.1%, and opportunistically redeemed $8 million of Trust Preferred securities, demonstrating active capital management.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.