United Community Banks Inc (UCBI) has reported a 5.51 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $23.52 million, or $0.33 a share in the quarter, compared with $22.30 million, or $0.31 a share for the same period last year. Revenue during the quarter grew 11.81 percent to $104.83 million from $93.76 million in the previous year period. Net interest income for the quarter rose 11.48 percent over the prior year period to $83.55 million. Non-interest income for the quarter rose 18.64 percent over the last year period to $22.07 million.
United Community Banks Inc has made provision of $0.80 million for loan losses during the quarter, compared with a negative provision of $0.20 million in the same period last year.
Net interest margin improved 4 basis points to 3.45 percent in the quarter from 3.41 percent in the last year period. Efficiency ratio for the quarter improved to 59.29 percent from 61.94 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“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.
Liabilities outpace assets growth
Total assets stood at $10,731.80 million as on Mar. 31, 2017, up 9.72 percent compared with $9,781.33 million on Mar. 31, 2016. On the other hand, total liabilities stood at $9,630.26 million as on Mar. 31, 2017, up 10.09 percent from $8,747.61 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $6,904.45 million as on Mar. 31, 2017, up 14.31 percent compared with $6,039.88 million on Mar. 31, 2016. Deposits stood at $8,752.09 million as on Mar. 31, 2017, up 9.95 percent compared with $7,960.32 million on Mar. 31, 2016. Investments stood at $2,788.71 million as on Mar. 31, 2017, up 0.29 percent or $8.06 million from year-ago. Shareholders equity stood at $1,101.54 million as on Mar. 31, 2017, up 6.56 percent or $67.82 million from year-ago.
Return on assets moved down 4 basis points to 0.89 percent in the quarter from 0.93 percent in the last year period. At the same time, return on equity decreased 3 basis points to 8.54 percent in the quarter from 8.57 percent in the last year period.
Nonperforming assets moved down 9.83 percent or $2.71 million to $24.87 million on Mar. 31, 2017 from $27.58 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.23 percent in the quarter, down from 0.28 percent in the last year period.
Equity to assets ratio was 10.24 percent for the quarter, down from 10.72 percent for the previous year quarter. Average equity to average assets ratio was 10.24 percent for the quarter, down from 10.72 percent for the previous year quarter. Book value per share was $15.40 for the quarter, up 7.32 percent or $1.05 compared to $14.35 for the same period last year.
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