What caused UCB's Q3 2024 EPS to drop sharply?

United Community Banks (UCB) experienced a drop in EPS in Q3 2024 compared to the previous quarter, primarily due to **increased loan losses and provisions for credit losses**. 1. **Loan Losses and Provisions for Credit Losses**: UCB's Q3 2024 EPS was impacted by a significant increase in loan losses and provisions for credit losses. The bank's net charge-offs reduced to 0.21% of average loans, marking the lowest level in two years. However, the allowance for credit losses increased by €23 million in the quarter, driven by a €62 million net quarterly increase in the loan portfolio. This increase in provisions for credit losses directly affects the net income and, consequently, the EPS. 2. **Currency Income and Interest Income**: UCB's financial performance in Q3 2024 was also influenced by currency income, which did not recur in 2023, and interest income. Despite strong net interest income and revenue growth, which served as a counterbalance to the declining profits, the overall effect on EPS was negative due to the aforementioned increase in loan losses and provisions. In summary, UCB's Q3 2024 EPS drop was primarily caused by increased loan losses and provisions for credit losses, coupled with currency and interest income factors.