{"id":479170,"date":"2021-04-20T16:33:26","date_gmt":"2021-04-20T20:33:26","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/united-community-banks-inc-reports-first-quarter-results\/"},"modified":"2021-04-20T16:33:26","modified_gmt":"2021-04-20T20:33:26","slug":"united-community-banks-inc-reports-first-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/united-community-banks-inc-reports-first-quarter-results\/","title":{"rendered":"United Community Banks, Inc. Reports First Quarter Results"},"content":{"rendered":"

\nEPS of $0.82, Return on Assets of 1.62% and Return on Common Equity of 15.4%
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GREENVILLE, S.C., April 20, 2021 (GLOBE NEWSWIRE) — United Community Banks, Inc. (NASDAQ: UCBI) (United) today announced that net income for the first quarter reached a record $73.7 million and pre-tax, pre-provision income was $81.6 million. The quarter benefited from an allowance release of $12.3 million, as economic conditions and forecasts continue to improve. Diluted earnings per share of $0.82 for the quarter represented an increase of $0.42 or 105%, from the first quarter a year ago, and represented an increase of $0.16 or 24% over the fourth quarter of 2020. On an operating basis, United\u2019s diluted earnings per share of $0.83 was an increase of 102% over the year ago quarter. United\u2019s GAAP return on assets (ROA) was 1.62% and its return on common equity was 15.4% for the quarter. On an operating basis, United\u2019s ROA was 1.65% and its return on tangible common equity was 19.7%. On a pre-tax, pre-provision basis, return on assets was 1.83% for the quarter.<\/p>\n

Chairman and CEO Lynn Harton stated, \u201cWe continue to have strong performance across our businesses and markets, driven by an improving economy, southeastern markets that are outperforming national averages, and great execution by our bankers. Loan growth, while slower than the previous two quarters, continues to be positive and deposit growth continues at a strong pace. Credit results were outstanding and we believe the record stimulus, strong liquidity levels of consumers and businesses, and pent up demand has the potential to deliver strong economic growth for several quarters.\u201d<\/p>\n

Total loans increased by $308 million during the quarter\u2014impacted by a $237 million increase in SBA Paycheck Protection Program (PPP) loans. During the quarter, United funded nearly 5,100 loans totaling $518 million, and had $311 million in PPP loans forgiven. Excluding the effect of PPP loans, core organic loan growth was 3% annualized. Core transaction deposits grew by $948 million during the quarter, or 33% annualized, and United\u2019s cost of deposits decreased by 3 basis points to 0.14%. The net interest margin decreased by 33 basis points from the fourth quarter due mainly to a $9.5 million decline in the recognition of PPP fees, as well as $1.8 million less purchased loan accretion. Excluding these items, the net interest margin decreased by approximately 7 basis points from the fourth quarter due to a combination of factors, including lower overall market rates and increased liquidity.<\/p>\n

Mr. Harton concluded, \u201cWe are excited about the ongoing opportunities in our markets and look forward to the rest of 2021. I also want to recognize our entire team for their performance. Earlier this quarter, Forbes recognized United on its 2021 list of the 100 Best Banks in America for the eighth consecutive year. Forbes\u2019 ranks the banks based on growth, credit quality and profitability and United was again a standout. I am incredibly proud of our employees who make this type of recognition possible through their tireless dedication to our customers, our culture and fulfilling our performance mission.\u201d<\/p>\n

\n First Quarter 2021 Financial Highlights:<\/strong>\n <\/p>\n