UCBI - United Community Banks GAAP EPS of $0.74 misses by $0.08 revenue of $223.42M misses by $15.33M

• United Community Banks press release ( NASDAQ: UCBI ): Q4 GAAP EPS of $0.74 misses by $0.08 .
• Revenue of $223.42M (+27.4% Y/Y) misses by $15.33M .

• Fourth Quarter 2022 Financial Highlights:-Net income of $81.5 million and pre-tax, pre-provision income of $125.9 million

• EPS increased by 35% compared to fourth quarter 2021 on a GAAP basis and 17% on an operating basis; compared to third quarter 2022, EPS remained flat on a GAAP basis and on an operating basis

• Return on assets of 1.33%, or 1.35% on an operating basis

• Pre-tax, pre-provision return on assets of 2.09% on an operating basis

• Return on common equity of 10.9%

• Return on tangible common equity of 15.2% on an operating basis

• A provision for credit losses of $19.8 million, which increased the allowance for loan losses to 1.04% of loans from 1.00% in the third quarter

• Loan production of $1.5 billion, resulting in loan growth of 12%, annualized for the quarter

• Core transaction deposits were down $915 million; or 22% annualized

• Net interest margin of 3.76% was up 19 basis points from the third quarter, due to increased interest rates and loan growth

• Mortgage closings of $253 million compared to $522 million a year ago; mortgage rate locks of $364 million compared to $695 million a year ago

• Noninterest income was up $1.4 million on a linked quarter basis, primarily driven by positive marks on certain investments and offset by lower mortgage fees

• Noninterest expenses increased by $4.6 million compared to the third quarter on a GAAP basis and by $4.9 million on an operating basis, mostly due to lower deferred costs from lower mortgage loan volume and higher FDIC deposit insurance costs

• Efficiency ratio of 48.0%, or 47.4% on an operating basis

• Net charge-offs of $6.6 million, or 17 basis points as a percent of average loans, up 14 basis points from the net charge-offs experienced in the third quarter

• Nonperforming assets of 0.18% of total assets, up 3 basis points compared to September 30, 2022

• Quarterly common shareholder dividend of $0.22 per share declared during the quarter, an increase of 10% year-over-year

• After the end of the quarter, we completed the acquisition of Progress Financial Corporation and its banking subsidiary Progress Bank and Trust with $1.8 billion in assets on January 3, 2023; financial returns are expected to be within our desired thresholds

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