United Community Banks, Inc. announces first quarter earnings
April 26, 2018
Earnings per diluted share up 42 percent to 47 cents from first quarter 2017
Excluding merger-related and other non-operating charges, diluted operating earnings per share up 28 percent, to 50 cents
United Community Banks, Inc. announced its first quarter 2018 financial results reflecting solid margin improvement, effective and disciplined expense management, an acceleration of loan growth and the continuation of sound credit quality. Net income was $37.7 million, or 47 cents per diluted share, compared with $23.5 million, or 33 cents per diluted share, for the first quarter of 2017.
On an operating basis, net income rose to $39.7 million for the first quarter of 2018 compared with $28.2 million for the first quarter of 2017. First quarter 2018 operating net income excludes pre-tax merger-related charges totaling $2.50 million and pre-tax charges related to branch closures completed during the quarter of $147,000. The income tax benefit from these non-operating charges was $628,000. First quarter 2017 operating net income excludes pre-tax merger-related charges of $1.17 million and pre-tax charges related to branch closures of $831,000. The income tax benefit associated with the charges was $758,000. Also excluded from first quarter 2017 operating earnings is a non-cash tax charge of $3.4 million related to the cancellation of interest rate swaps that were designated as cash flow hedges. The non-cash tax charge was previously included in other comprehensive income until the swaps matured or were canceled.
Highlights
- Return on assets of 1.26 percent, or 1.33 percent excluding merger-related and other charges
- Return on common equity of 11.1 percent, return on tangible common equity of 15.3 percent excluding merger-related and other charges
- Net interest revenue of $103.3 million, up $19.7 million or 24 percent from year ago
- Net interest margin of 3.80 percent, up 17 basis points from fourth quarter 2017 and up 35 basis points from year ago
- Efficiency ratio of 57.8 percent, or 55.8 percent excluding merger-related and other charges
- Completed the acquisition of Navitas Credit Corp. during the quarter
