United Community Banks (UCBI) Tops Q1 EPS by 2c, Revenues Miss

United Community Banks (NASDAQ: UCBI) reported Q1 EPS of $0.56, $0.02 better than the analyst estimate of $0.54. Revenue for the quarter came in at $133.3 million versus the consensus estimate of $137.32 million.

• Diluted earnings per share were $0.55, an increase of $0.08 or 17% from a year ago.
• Excluding merger-related and other charges, diluted operating earnings per share were $0.56, up 12% over last year.
• United’s return on assets (“ROA”) reached 1.44% with a return on equity of 11.9%. On an operating basis,
• United’s ROA was 1.45% with a return on tangible common equity of 15.5%

“Our first quarter performance begins what we believe will be an outstanding year,” said Lynn Harton, President and Chief Executive Officer of United. “We continue to invest in thoughtful growth and in hiring the right bankers in the right markets, while maintaining strong expense discipline. We are proud to have reported a second consecutive quarter with a 1.45% return on assets on an operating basis, a historically high level. This performance would simply not be possible without our outstanding team, which earned United the distinction this quarter of being named one of the “World’s Best Banks 2019” by Forbes. In February, we announced that our team will be expanding with the acquisition of First Madison Bank & Trust in Athens, Georgia. We look forward to welcoming First Madison and to adding loyal customers and another attractive market to our footprint in the second quarter.”

• GAAP EPS growth of 17% versus last year, or 12% on an operating basis
• Return on assets of 1.44%, or 1.45%, excluding merger-related and other charges
• Return on common equity of 11.9%
• Return on tangible common equity of 15.5%, excluding merger-related and other charges
• Loan growth, excluding planned runoff of the indirect portfolio, of 7% on an annualized basis
• Loan production of $782 million, as compared to $666 million in Q1 2018
• Loan growth of $110 million more than funded by core transaction deposit growth of $135 million
• Expansion of the net interest margin to 4.10%, up 13 basis points from the fourth quarter of 2018 and up 30 basis points from a year ago
• Efficiency ratio of 55.3%, or 54.8%, excluding merger-related and other charges
• Net charge-offs of fifteen basis points, up six basis points from last quarter, but remain at a historically low level
• Nonperforming assets of 0.20% of total assets, compared with 0.20% at December 31, 2018 and 0.24% at March 31, 2018
• Repurchased 305,000 common shares in Q1, or $7.8 million as part of authorized $50 million repurchase program
• Intentional balance sheet deleveraging, resulting in securities decreasing by $183 million ($122 million average), offset by a reduction in wholesale borrowings

For earnings history and earnings-related data on United Community Banks (UCBI) click here.

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