NYSE$UCB

United Community Banks Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$180M

Previous: $243M-25.9%
EPS (adj)

$0.53

Previous: $0.75-29.3%
Return on Assets

0.2%

Previous: 1.3%-86.5%
Return on Equity

1.4%

No prior period
Net Interest Margin

3.2%

Previous: 3.8%-15.2%
TCE to Tangible Assets

8.4%

No prior period
Capital Expenditures

$13.3M

Previous: $16.4M-18.8%
Net Income

$14.1M

Previous: $81.5M-82.7%
Operating Income

$25.8M

No prior period
Gross Profit

$166M

Previous: $223M-25.8%
Stock-Based Comp

$1.84M

Previous: $2.06M-10.6%

Revenue & EPS history

United Community Banks · Revenue · Quarterly

$180M

Q4 2023-25.9%vs Q4 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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

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 Q4 2023

Historical avgQ4 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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