NYSE$UCB

United Community Banks Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid first quarter results with customer deposit growth, organic loan growth, and strong asset quality and capital levels.

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.

Headline financials

Total Revenue

$220M

Previous: $180M+22.4%
EPS (adj)

$0.58

Previous: $0.50+16.0%
Return on Assets

0.9%

Previous: 0.8%+21.8%
Net Interest Margin

3.6%

No prior period
TCE to Tangible Assets

8.2%

No prior period
Capital Expenditures

-$22.6M

Previous: -$7.31M-209.0%
Free Cash Flow

$67.5M

Previous: $193M-65.1%
Net Income

$62.3M

Previous: $48M+29.7%
Operating Income

$91.7M

Previous: $115M-20.1%
Gross Profit

$198M

Previous: $157M+26.5%
Cash & Equivalents

$778M

Previous: $1.9B-59.2%
Total Assets

$25.9B

Previous: $24.4B+6.1%
Stock-Based Comp

$2.48M

Previous: $2.49M-0.2%

Revenue & EPS history

United Community Banks · Revenue · Quarterly

$220M

Q1 2023+22.4%vs Q1 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.0%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

44%

28 / 63 earnings

Positive

+7.4%

Q2 2014

Best reaction

-9.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%-3.6%-3.1%
Q4 2025+2.8%+4.2%+6.4%
Q3 2025-0.5%-0.5%+1.0%
Q2 2025-0.0%-1.0%+2.7%
Q1 2025+6.6%+10.9%+16.4%
Q4 2024-1.5%+0.8%-4.1%
Q3 2024-1.5%-0.3%+19.5%
Q2 2024+4.2%+2.9%+1.6%
Q1 2024-1.4%-2.1%-2.3%
Q4 2023-2.0%-0.3%-10.4%
Q3 2023-9.6%-13.4%-4.7%
Q2 2023+2.5%+1.5%+0.9%
Q1 2023-1.0%-5.0%-17.3%
Q4 2022-8.8%-9.1%-5.7%
Q3 2022-0.7%-1.3%+0.8%
Q2 2022+3.6%+3.1%+16.1%
Q1 2022+2.9%+1.5%-5.1%
Q4 2021-6.2%-10.1%-4.3%
Q3 2021+3.0%+5.3%+5.9%
Q2 2021+0.3%+0.1%+2.4%
Q1 2021-4.3%-1.1%+2.9%
Q4 2020+0.0%+0.8%+2.3%
Q3 2020+3.7%+11.9%+31.0%
Q2 2020+6.3%+5.7%-0.1%
Q1 2020-4.6%-1.1%-0.4%
Q4 2019-3.7%-4.8%-2.7%
Q3 2019+4.3%+4.0%+5.7%
Q2 2019+4.5%+5.0%-4.0%
Q1 2019+5.9%+7.1%+1.6%
Q4 2018+5.1%+6.6%+18.7%
Q3 2018-5.2%-3.3%+2.5%
Q2 2018-2.5%-3.3%-1.4%
Q1 2018-0.9%-0.7%+1.3%
Q4 2017+0.1%+2.8%-0.2%
Q3 2017+2.3%+0.4%-1.8%
Q2 2017-2.2%-3.8%-8.7%
Q1 2017+1.4%-0.5%-4.6%
Q4 2016+1.8%-2.0%+3.0%
Q3 2016+0.0%+1.2%+27.1%
Q2 2016+1.5%-0.3%+6.9%
Q1 2016-0.7%
Q4 2015-1.6%
Q3 2015-0.2%
Q2 2015-1.7%
Q1 2015-0.2%
Q4 2014+5.9%
Q3 2014+3.5%
Q2 2014+7.4%
Q1 2014-5.0%
Q4 2013-3.9%
Q3 2013+2.7%
Q2 2013+2.2%
Q1 2013-2.6%
Q4 2012+0.7%
Q3 2012-5.2%
Q2 2012+5.3%
Q1 2012+0.0%
Q4 2011+1.9%
Q3 2010-5.0%
Q3 2011-5.0%
Q2 2011-0.3%
Q2 2010-0.3%
Q4 2010-0.3%

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