Market Overview

United Community Banks, Inc. reports Third Quarter Results

Share:

GREENVILLE, S.C., Oct. 22, 2019 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) ("United") today reported strong third quarter financial results, including solid year-over-year loan and deposit growth, record operating efficiency and strong asset quality. Diluted earnings per share were $0.60, an increase of $0.06 or 11% from a year ago. Excluding merger-related and other charges, diluted operating earnings per share were $0.63, up 15% over last year. United's return on assets ("ROA") was 1.51% and its return on common equity was 12.2% for the quarter. On an operating basis, United's ROA was 1.58% and its return on tangible common equity was 16.4%.

In the third quarter, loans grew at a 3% annualized rate, or at 4% annualized excluding the planned runoff of the discontinued indirect auto portfolio. With this loan growth and continued balance sheet remixing opportunities, United maintained its net interest margin during the quarter, despite declining interest rates. Core transaction deposits grew by $105 million, or 6% annualized, and total customer deposits increased by $197 million during the quarter. Finally, United's combination of revenue growth and expense management resulted in a 55.64% efficiency ratio, or 53.90% on an operating basis, which represented a new Company best for the second consecutive quarter.

"We are pleased to report such a successful quarter, which is a testament to our team and their tireless dedication to providing outstanding customer service and to executing on our plans to deliver top quartile results," said Lynn Harton, Chairman and CEO of United. "I am also tremendously proud that United was named one of the "Best Banks to Work For" by American Banker for the third year in a row.  This honor is achieved through the focus and energy of our bankers to build a company where great people can find fulfillment in helping others reach their financial goals."

Third Quarter 2019 Financial Highlights:

  • EPS growth of 11% over last year, or 15% on an operating basis
  • Return on assets of 1.51%, or 1.58% excluding merger-related and other charges
  • Return on common equity of 12.2%
  • Return on tangible common equity of 16.4% excluding merger-related and other charges
  • Loan production of $896 million compared to $778 million in Q3 2018
  • Loan growth, excluding planned runoff of the indirect portfolio of 4% for the quarter and 7% year-to-date on an annualized basis, excluding the acquisition of First Madison on May 1, 2019
  • Loan growth of $89 million, excluding planned run off of the indirect portfolio, was more than funded by core transaction deposit growth of $105 million
  • Mortgage locks of $508 million, a company high, compared to $298 million a year ago
  • Stable net interest margin of 4.12% was flat compared to the second quarter and up 17 basis points from a year ago
  • Efficiency ratio of 55.64%, or 53.90%, excluding merger-related and other charges
  • Net charge-offs of 12 basis points, up one basis point from last quarter and remaining at historically low levels
  • Nonperforming assets of 0.24% of total assets, compared with 0.21% at June 30, 2019 and 0.19% at September 30, 2018
  • Repurchased approximately 195,000 shares at an average price of $26.51 in the quarter

Conference Call
United will hold a conference call, Wednesday, October 23, 2019, at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 8899475. The conference call also will be webcast and available for replay for 30 days by selecting "Events & Presentations" within the Investor Relations section of United's website at www.ucbi.com.

UNITED COMMUNITY BANKS, INC.                                    
Selected Financial Information                                    
    2019   2018   Third Quarter 2019 - 2018 Change   For the Nine Months Ended September 30,   YTD 2019 - 2018 Change
(in thousands, except per share data)   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   Third Quarter     2019   2018  
INCOME SUMMARY                                    
Interest revenue   $ 140,615     $ 139,156     $ 136,516     $ 133,854     $ 128,721         $ 416,287     $ 366,226      
Interest expense   21,277     21,372     20,882     18,975     16,611         63,531     42,355      
Net interest revenue   119,338     117,784     115,634     114,879     112,110     6 %   352,756     323,871     9 %
Provision for credit losses   3,100     3,250     3,300     2,100     1,800     72     9,650     7,400     30  
Noninterest income   29,031     24,531     20,968     23,045     24,180     20     74,530     69,916     7  
Total revenue   145,269     139,065     133,302     135,824     134,490     8     417,636     386,387     8  
Expenses   82,924     81,813     76,084     78,242     77,718     7     240,821     228,043     6  
Income before income tax expense   62,345     57,252     57,218     57,582     56,772     10     176,815     158,344     12  
Income tax expense   13,983     13,167     12,956     12,445     13,090     7     40,106     37,370     7  
Net income   48,362     44,085     44,262     45,137     43,682     11     136,709     120,974     13  
Merger-related and other charges   2,605     4,087     739     1,234     592         7,431    
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com