NYSE$UCB

United Community Banks Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong financial performance and continued business expansion.

United Community Banks, Inc. reported third quarter financial results, including solid year-over-year loan and deposit growth and record operating efficiency. United delivered net income of $47.6 million and pre-tax pre-provision income of $81.2 million.

  • Net income was $47.6 million.
  • Pre-tax pre-provision income was $81.2 million.
  • Diluted earnings per share were $0.52 for the quarter.
  • Total loans increased by $1.7 billion during the quarter.

Headline financials

Total Revenue

$155M

Previous: $145M+6.9%
EPS (adj)

$0.55

Previous: $0.63-12.7%
Return on Assets

1.1%

No prior period
Return on Equity

10.1%

No prior period
Capital Expenditures

-$5.99M

Previous: -$16.5M+63.8%
Free Cash Flow

$47.6M

Previous: $79.6M-40.1%
Net Income

$47.6M

Previous: $48.4M-1.6%
Operating Income

$100M

Previous: $108M-7.0%
Gross Profit

$134M

Previous: $145M-8.1%
Cash & Equivalents

$1.05B

Previous: $361M+189.6%
Total Assets

$17.2B

Previous: $12.8B+33.9%
Stock-Based Comp

$1.68M

Previous: $1.68M+0.3%

Revenue & EPS history

United Community Banks · Revenue · Quarterly

$155M

Q3 2020+6.9%vs Q3 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Forward guidance

While this is a difficult environment in which to forecast future economic conditions, we are encouraged by increasing business activity in our markets and stable credit performance in our portfolio to date. Our strong balance sheet position gives us the ability to continue to support our customers and communities, and we believe we will be well positioned to be able to take advantage of expansion opportunities in the future.

Tailwinds

  • Increasing business activity in our markets
  • Stable credit performance in our portfolio to date
  • Strong balance sheet position
  • Ability to continue to support our customers and communities
  • Well positioned to be able to take advantage of expansion opportunities in the future

Headwinds

  • Uncertain future economic and operating environment
  • Decline in diluted earnings per share from a year ago
  • Increase in credit loss provisioning associated with loan growth and the acquisition of Seaside
  • Net interest margin declines largely driven by declines in market interest rates
  • Loan payment deferrals, though declined, still present at $365 million

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 Q3 2020

Historical avgQ3 2020

+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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