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Dec 31, 2023
United Community Banks Q4 2023 Earnings Report
United Community Banks reported mixed results for Q4 2023, with net income impacted by non-operating items but underlying banking operations showing strength in deposit and loan growth.
Key Takeaways
United Community Banks, Inc. announced a net income of $14.1 million for the fourth quarter. Diluted earnings per share were $0.11, while operating diluted earnings per share reached $0.53. The bank experienced deposit and loan growth, and net interest revenue increased modestly. Asset quality remained solid, excluding Navitas.
Net income for the fourth quarter was $14.1 million, with diluted earnings per share at $0.11.
Operating diluted earnings per share increased to $0.53, driven by core banking operations.
Deposits grew at an annualized rate of 8%, and loans grew at an annualized rate of 2.5%.
Net interest margin decreased slightly to 3.19%, but the pace of margin compression has slowed.
United Community Banks
United Community Banks
Forward Guidance
United Community Banks is optimistic about 2024, citing strong economic conditions in its markets and a focus on customer service. The bank remains cautious in its underwriting and portfolio management due to the uncertain economic environment.
Positive Outlook
- Economic conditions remain strong in our markets
- Our teams continue to be focused on leading our markets in customer service
- United was named one of the “Best Banks to Work For” by American Banker for the seventh consecutive year
- We are in the final phases of refreshing our corporate logo and brand across our franchise
- Our commitment to investing in our people, technology and customers’ needs with a culture of caring will remain the same as we continue to grow
Challenges Ahead
- We continue to be cautious in our underwriting and portfolio management given the inherent uncertainty in the environment
- Closely monitoring for potential changes in both the economic environment overall and specifically in our markets
- Cost of deposits continued to drift upward
- Net interest margin decreased by 5 basis points
- Exposure to interest rate volatility in this uncertain environment