United Community Banks (NYSE:UCB – Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.09), Zacks reports. United Community Banks had a net margin of 22.05% and a return on equity of 9.65%.
Here are the key takeaways from United Community Banks’ conference call:
- United Community Banks posted a solid quarter, with operating EPS of $0.71 up 8% year over year and total revenue up 7%. Management also highlighted a sixth straight quarter of net interest margin expansion to 3.68%.
- Loan growth accelerated to a 6.8% annualized pace, or 6.4% excluding Navitas, driven by stronger hiring of revenue producers. Executives said the new lending team additions are starting to show up in production and could support upper-single-digit growth next year.
- Credit quality remained strong, with bank-only net charge-offs of 9 basis points and total net charge-offs of 16 basis points. Past dues and criticized loan metrics were also described as being at very low levels.
- The quarter included a large non-operating benefit from releasing Navitas reserves as those loans were reclassified to held for sale, along with a one-time California lender license settlement cost tied to Navitas. Management said the Navitas sale is still expected to close early in the third quarter.
- Management reiterated a strong capital return and M&A optionality outlook, including buying back the remaining shares tied to Peach State and considering additional capital deployment next year. They also said small-bank acquisition conversations remain active and could increase after Peach State closes.
United Community Banks Stock Performance
Shares of NYSE:UCB traded down $0.82 during mid-day trading on Tuesday, reaching $35.21. 67,899 shares of the company traded hands, compared to its average volume of 909,431. The company’s 50 day moving average price is $34.04 and its 200-day moving average price is $33.39. The firm has a market cap of $4.21 billion, a PE ratio of 12.92 and a beta of 0.81. United Community Banks has a 52 week low of $28.65 and a 52 week high of $37.18. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.82 and a quick ratio of 0.82.
United Community Banks Dividend Announcement
Insider Buying and Selling at United Community Banks
In other United Community Banks news, EVP Richard Bradshaw sold 1,510 shares of the company’s stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $33.09, for a total value of $49,965.90. Following the completion of the transaction, the executive vice president directly owned 84,497 shares in the company, valued at $2,796,005.73. This represents a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.45% of the stock is currently owned by insiders.
Institutional Investors Weigh In On United Community Banks
Institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. grew its position in shares of United Community Banks by 7.4% during the fourth quarter. Invesco Ltd. now owns 1,805,308 shares of the company’s stock worth $56,362,000 after purchasing an additional 124,347 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of United Community Banks by 70.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,380,627 shares of the company’s stock valued at $43,103,000 after buying an additional 571,296 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of United Community Banks by 0.7% in the fourth quarter. Bank of New York Mellon Corp now owns 1,212,360 shares of the company’s stock worth $37,850,000 after buying an additional 8,915 shares in the last quarter. Wellington Management Group LLP grew its stake in United Community Banks by 125.7% during the third quarter. Wellington Management Group LLP now owns 774,660 shares of the company’s stock valued at $24,286,000 after acquiring an additional 431,491 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its holdings in United Community Banks by 105.9% in the 3rd quarter. Qube Research & Technologies Ltd now owns 766,552 shares of the company’s stock valued at $24,031,000 after acquiring an additional 394,263 shares during the last quarter. 82.29% of the stock is owned by institutional investors.
Analysts Set New Price Targets
A number of research firms have recently weighed in on UCB. Wall Street Zen downgraded shares of United Community Banks from a “hold” rating to a “sell” rating in a research report on Saturday, June 27th. Stephens lifted their target price on shares of United Community Banks from $39.00 to $40.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. Keefe, Bruyette & Woods upgraded United Community Banks from a “market perform” rating to an “outperform” rating and upped their price target for the stock from $36.00 to $40.00 in a research note on Thursday, April 9th. Hovde Group lowered their price objective on United Community Banks from $38.00 to $37.00 and set a “market perform” rating for the company in a research note on Monday, April 27th. Finally, TD Cowen raised United Community Banks to a “strong-buy” rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $38.40.
View Our Latest Research Report on UCB
About United Community Banks
United Community Banks, Inc (NYSE: UCB) is a bank holding company headquartered in Blairsville, Georgia. It operates primarily through its subsidiary, United Community Bank, providing a broad range of banking and financial services to individual, business and governmental customers. The company’s core offerings include deposit accounts, commercial and consumer lending, mortgage origination, treasury and cash management services, and wealth management.
In addition to traditional banking products such as checking, savings and money market accounts, United Community Bank specializes in commercial real estate financing, small business administration (SBA) loans, equipment financing and agricultural lending.
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