United Community Banks, Inc.: history, ownership, mission, how it works & makes money

A Brief History of United Community Banks, Inc.

Founded in 1950, United Community Banks, Inc. (UCBI) has grown from a small community bank in Blairsville, Georgia, to one of the largest banking institutions headquartered in the southeastern United States. As of September 30, 2023, UCBI operated over 150 branches across Georgia, Tennessee, North Carolina, and South Carolina.

In 2000, UCBI became a publicly traded company on NASDAQ under the ticker symbol UCBI. The initial public offering offered an opportunity for expansion, allowing the bank to pursue strategic acquisitions. Over the years, UCBI has executed several key mergers to bolster its presence and service offerings.

Notably, in 2013, UCBI acquired North Georgia Bank, adding approximately $260 million in assets and enhancing its footprint in the Atlanta metropolitan area. This acquisition brought UCBI's total assets to around $7 billion.

In 2019, UCBI completed the acquisition of the Georgia-based Pinnacle Bank, significantly increasing its market share. Pinnacle Bank contributed $1 billion in assets, bringing UCBI's total asset size to approximately $13.6 billion at that time. The merger was instrumental in expanding its lending capabilities and service branches.

At the end of 2022, UCBI reported total assets of approximately $20.8 billion, representing a growth of roughly 52% over the span of three years. The bank’s total deposits reached $17.8 billion as of December 31, 2022, maintaining a robust deposit growth trajectory even amid competitive pressure.

During the first quarter of 2023, UCBI achieved net income of $38 million, reflecting an increase of 7% year-over-year. The bank's return on equity (ROE) stood at 12.4%, showcasing its efficiency in generating profits from shareholders' equity.

The bank's stock performance has mirrored its financial growth. As of October 2023, UCBI’s stock price has appreciated significantly, trading at approximately $33.50, reflecting a year-to-date increase of around 15%. The bank has consistently paid dividends, maintaining a dividend yield of about 2.6% as of the latest data.

UCBI's strategic focus on both organic growth and acquisitions has allowed it to navigate various economic cycles effectively. The bank's commitment to community-oriented banking remains central to its corporate ethos, enhancing customer loyalty and engagement across its service areas.

A Who Owns United Community Banks, Inc.

United Community Banks, Inc. (UCBI), based in Blairsville, Georgia, operates in the banking and financial services sector. As of the latest available data, UCBI has a market capitalization of approximately $2.11 billion.

The ownership structure of UCBI is characterized by institutional investors, mutual funds, and individual shareholders. According to recent filings with the Securities and Exchange Commission (SEC), institutional ownership stands at around 81.5%, reflecting significant confidence from the investment community.

Among the largest institutional shareholders, key players include:

As of the latest quarterly earnings report, UCBI reported a net income of $36.1 million for Q3 2023, compared to $25.4 million in Q3 2022, marking an increase of 42.0%.

United Community Banks, Inc. is listed on the NASDAQ under the ticker symbol "UCBI." In the year-to-date performance, the stock has shown a positive change, with shares trading at approximately $32.15 as of the end of October 2023, reflecting a year-to-date increase of about 8.5%.

United Community Banks, Inc. Mission Statement

United Community Banks, Inc. (UCBI) is driven by its mission to provide exceptional financial services and build lasting relationships with its customers. The company aims to create value for its customers, employees, and shareholders through a commitment to community involvement and support for economic development.

The central tenet of UCBI's mission is to deliver strong financial performance while ensuring customer satisfaction. The bank's core values include integrity, respect, and teamwork, which guide its operations and customer interactions. UCBI focuses on fostering a positive impact in the communities it serves, thereby enhancing both individual lives and the broader economic landscape.

Financial Overview

As of September 30, 2023, United Community Banks, Inc. reported significant financial metrics that reflect its ongoing commitment to excellence and community service:

Customer Commitment

The bank emphasizes its dedication to customer service through personalized banking solutions. UCBI continues to invest in technology to enhance the customer experience, including mobile banking and online platforms. In 2023, UCBI launched new features that increased digital banking engagement by 25% year-over-year.

Community Investment

In alignment with its mission, UCBI actively participates in community development initiatives. In 2022, UCBI contributed nearly $3.2 Million to local community programs, supporting education, healthcare, and economic growth in its operating regions.

The bank’s commitment to the communities is further highlighted by its employee volunteer programs. UCBI employees have contributed over 10,000 hours to community service in 2023 alone, reinforcing the company’s ethos of service and collaboration.

Strategic Goals

UCBI’s strategic goals are intertwined with its mission statement, focusing on sustainable growth, financial stability, and community enhancement. The bank aims for an annual growth rate of 8-10% in total assets and a 5% increase in customer accounts per year, aligning with its vision of expanding services while maintaining customer satisfaction and community support.

United Community Banks, Inc.’s mission statement reflects its comprehensive approach to banking, which is rooted in community service, financial performance, and customer dedication. These principles guide UCBI as it continues to thrive in an ever-evolving financial landscape.

How United Community Banks, Inc. Works

United Community Banks, Inc. (UCBI) operates as a bank holding company for United Community Bank, offering a range of financial services primarily in the southeastern United States. As of the latest reports, UCBI operates over 150 branches across Georgia, North Carolina, South Carolina, and Tennessee.

The bank generates revenue primarily through interest income from loans and fees from services. For the second quarter of 2023, UCBI reported net interest income of $66.1 million, a notable increase compared to $54.0 million in the same period of the previous year. This surge can be attributed to an increase in the net interest margin, which expanded to 3.47%.

UCBI's asset management strategy encompasses commercial and consumer banking, with a focus on middle-market companies and retail banking services. As of June 30, 2023, the total assets of the bank stood at approximately $17.2 billion, with total loans amounting to $11.4 billion.

UCBI's capital position remains strong, with a total equity of $1.2 billion and a Common Equity Tier 1 (CET1) capital ratio of 10.5% as reported at the end of Q2 2023. This ratio indicates a robust capitalization that exceeds the regulatory minimum standards.

The bank has also been active in expanding its customer base through digital banking initiatives, resulting in a significant increase in online account openings. In the same quarter, UCBI reported a growth of over 25% in mobile banking users compared to the previous year.

UCBI maintains a diversified loan portfolio with commercial real estate representing about 30% of total loans, while residential loans account for approximately 25%. This diversification helps mitigate risk, especially during economic downturns.

In terms of market performance, UCBI's stock has seen a year-to-date increase of approximately 17%, with shares trading at around $32.25 as of late July 2023. The bank's price-to-earnings (P/E) ratio stands at 11.4, which is competitive relative to the industry average of 12.2.

Overall, United Community Banks, Inc. leverages a strong regional presence, diversified product offerings, and a focus on technology to ensure growth and stability in an evolving financial landscape.

How United Community Banks, Inc. Makes Money

United Community Banks, Inc. (UCBI) derives its revenue primarily from three main sources: net interest income, non-interest income, and fees associated with various banking services.

Net Interest Income

Net interest income is the most significant contributor to UCBI's earnings. For the fiscal year 2022, UCBI reported a net interest income of $325.9 million, reflecting an increase of 23% from the previous year. The rise in interest income is attributed to higher loan volumes and interest rates:

Loan Portfolio

UCBI's loan portfolio is a critical driver of net interest income. As of the end of Q2 2023, UCBI reported total loans of $4.8 billion, with a year-over-year growth rate of 12%. The bank's loan composition includes:

• Commercial and industrial loans: $1.9 billion
• Residential real estate loans: $1.3 billion
• Consumer loans: $900 million
• Commercial real estate loans: $700 million

Non-Interest Income

Non-interest income contributes significantly to UCBI's revenue mix. In 2022, UCBI reported non-interest income of $103.4 million, representing an increase of 18% from the prior year. Major components include:

• Service charges on deposit accounts: $35 million
• Wealth management fees: $40 million
• Mortgage banking revenue: $15 million
• Other non-interest income: $13.4 million

Expense Management

UCBI has maintained a focus on managing operating expenses. In 2022, the efficiency ratio improved to 60%, down from 63% in 2021. Total expenses for 2022 stood at $217 million.

Conclusion on Revenue Streams

Overall, United Community Banks, Inc. makes money through a balanced mix of net interest income from its loan portfolio and diverse non-interest income sources, while effectively managing expenses to support profitability.