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Sep 30, 2023

United Community Banks Q3 2023 Earnings Report

Reported net income and EPS decrease due to various factors, including the absence of gains and increased expenses, but customer deposits and loans grew.

Key Takeaways

United Community Banks reported a decrease in net income and diluted earnings per share for the third quarter of 2023 compared to both the previous quarter and the same quarter last year. Customer deposits and loans experienced annualized growth. The net interest margin contracted due to deposit pricing competition, while noninterest income was down due to the absence of gains. Noninterest expenses increased due to the FNBSM acquisition.

Net income for the third quarter was $47.9 million.

Diluted earnings per share decreased to $0.39, a 26% decrease from Q2 2023 and a 47% decrease from Q3 2022.

Customer deposits grew by 5.6% annualized and loans grew at a 5.4% annualized rate.

Net interest margin decreased by 13 basis points to 3.24%.

Total Revenue
$235M
Previous year: $232M
+1.2%
EPS
$0.45
Previous year: $0.75
-40.0%
Return on assets
0.68%
Previous year: 1.32%
-48.5%
Return on common equity
5.3%
Previous year: 11.02%
-51.9%
Gross Profit
$204M
Previous year: $216M
-5.6%
Cash and Equivalents
$26.9B
Previous year: $484M
+5457.6%
Free Cash Flow
$71.8M
Previous year: $151M
-52.6%
Total Assets
$26.9B
Previous year: $23.7B
+13.4%

United Community Banks

United Community Banks

Forward Guidance

United expects broader credit performance to remain strong, but is appropriately cautious in its portfolio management given the potential for ongoing changes in the economic environment.