United Community Banks (UCBI) Misses Q1 EPS by 5c

United Community Banks (NASDAQ: UCBI) reported Q1 EPS of $0.33, $0.05 worse than the analyst estimate of $0.38.

“We began 2017 with a solid first quarter,” said Jimmy Tallent, chairman and chief executive officer. “Excluding merger-related and other non-operating charges, operating net income per share was up 18 percent from a year ago to 39 cents, driven by strong loan and fee revenue growth and expense management. Also excluding these charges, we held our operating efficiency ratio to 57.4 percent, the second best in a decade and surpassed only by the fourth quarter of 2016. Including those charges, the efficiency ratio was 59.3 percent.

“While linked-quarter operating net income was down slightly, our margin expansion and disciplined expense management offset most of the seasonal declines in mortgage and SBA lending, as well as some seasonal decrease in loan growth,” Tallent said. “Our bankers made steady progress improving financial performance by growing core transaction deposits a healthy 13 percent in the first quarter, all while holding deposit pricing steady.

“First quarter loan production was $615 million,” Tallent added. “Linked-quarter average loan growth was $89.8 million, or 5 percent annualized, reflecting a seasonal decrease from recent quarters. End of period loans grew by $44.4 million. Our community banks originated $423 million in loans, while our specialized lending area produced $151 million.” Specialized lending encompasses commercial real estate, middle market, SBA, asset-based lending, senior living and builder finance."

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

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