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Mar 31, 2023
United Community Banks Q1 2023 Earnings Report
Reported solid first quarter results with customer deposit growth, organic loan growth, and strong asset quality and capital levels.
Key Takeaways
United Community Banks, Inc. announced net income of $62.3 million for Q1 2023, with diluted earnings per share of $0.52. The results reflect growth in interest rates and organic loans, offset by increased deposit and borrowing costs.
Net income for the first quarter was $62.3 million.
Diluted earnings per share were $0.52, up 21% year-over-year.
Customer deposit growth reached 10%, and organic loan growth was 8%.
Net interest margin decreased to 3.61% from the previous quarter.
United Community Banks
United Community Banks
Forward Guidance
United Community Banks believes that 2023 will be a great year, and they remain focused on being a great partner for their clients and communities, growing their business, and being prepared to manage through any challenges that lie ahead.
Positive Outlook
- Continue to strengthen teams, recruiting great bankers and adding new locations.
- Recently announced a refresh of the brand with a new logo to be rolled out to markets through 2024.
- Commitment to service and to community that has been the focus for more than 70 years.
- Expanding the company into exciting growth markets.
- Welcoming Progress officially into the United team, adding to growth opportunities in Alabama and the Florida Panhandle.
Challenges Ahead
- Uncertainty in the economic environment.
- Net interest margin did contract from the previous quarter due to higher deposit costs.
- Higher deposit and borrowed funds interest cost.
- Changes in deposit composition toward more expensive time deposits during the quarter.
- NPAs were 28 basis points relative to total assets, up 10 basis points from the previous quarter.