United Community Banks (UCBI) has reported 44.65 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $25.87 million, or $0.36 a share in the quarter, compared with $17.89 million, or $0.27 a share for the same period last year. Revenue during the quarter grew 27.25 percent to $105.65 million from $83.02 million in the previous year period. Net interest income for the quarter rose 20.73 percent over the prior year period to $78.99 million. Non-interest income for the quarter rose 44.07 percent over the last year period to $26.36 million.
United Community Banks has made negative provision of $0.30 million for loan losses during the quarter, compared with a positive provision of $0.70 million in the same period last year.
Net interest margin improved 8 basis points to 3.34 percent in the quarter from 3.26 percent in the last year period. Efficiency ratio for the quarter improved to 60.78 percent from 64.65 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our third quarter results underscore the positive momentum from our investments in new businesses and markets," said Jimmy Tallent, chairman and chief executive officer. "Our mortgage banking business continued to produce record quarterly results which, combined with strong performance from our SBA business and solid customer derivative sales, led to a 44 percent increase in fee revenue from a year ago."
Liabilities outpace assets growthTotal assets stood at $10,297.62 million as on Sep. 30, 2016, up 9.39 percent compared with $9,414 million on Sep. 30, 2015. On the other hand, total liabilities stood at $9,218.32 million as on Sep. 30, 2016, up 9.73 percent from $8,400.86 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $6,662.15 million as on Sep. 30, 2016, up 11.88 percent compared with $5,954.52 million on Sep. 30, 2015. Deposits stood at $8,441.60 million as on Sep. 30, 2016, up 6.79 percent compared with $7,905.01 million on Sep. 30, 2015. Investments stood at $2,585.49 million as on Sep. 30, 2016, up 4.37 percent or $108.17 million from year-ago. Shareholders equity stood at $1,079.29 million as on Sep. 30, 2016, up 6.53 percent or $66.16 million from year-ago.
Return on assets moved up 18 basis points to 1 percent in the quarter from 0.82 percent in the last year period. At the same time, return on equity increased 176 basis points to 9.61 percent in the quarter from 7.85 percent in the last year period.
Nonperforming assets moved up 10.91 percent or $3.03 million to $30.76 million on Sep. 30, 2016 from $27.73 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.30 percent in the quarter, up from 0.29 percent in the last year period.
Equity to assets ratio was 10.38 percent for the quarter, down from 10.39 percent for the previous year quarter. Average equity to average assets ratio was 10.38 percent for the quarter, down from 10.39 percent for the previous year quarter. Book value per share was $15.12 for the quarter, up 8.39 percent or $1.17 compared to $13.95 for the same period last year.
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