United Community Banks Inc (UCBI) has reported a 49.50 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $27.22 million, or $0.38 a share in the quarter, compared with $18.21 million, or $0.25 a share for the same period last year.
Revenue during the quarter grew 12.04 percent to $106.16 million from $94.75 million in the previous year period. Net interest income for the quarter rose 9.71 percent over the prior year period to $80.92 million. Non-interest income for the quarter rose 18.55 percent over the last year period to $25.23 million.
Net interest margin was stable at 3.34 percent in the quarter, when compared with the last year period. Efficiency ratio for the quarter improved to 57.65 percent from 68.97 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“Our fourth quarter results mark a solid ending to an exceptional year for United Community Banks,” said Jimmy Tallent, chairman and chief executive officer. “Our bankers continue to make progress in improving our financial performance. A year ago we set a goal of achieving a 1.10 percent operating return on assets by the fourth quarter of 2016. We knew that achieving this goal would not be easy, but we also knew our determined bankers and how they react to a challenge. I am proud to say that in the fourth quarter, not only did they achieve that goal, but they also pushed our operating return on tangible common equity to 12.5 percent and improved our operating efficiency ratio to 56.6 percent. I could not be more pleased.” Operating performance measures exclude the charges mentioned above. Including those charges, return on assets was 1.03 percent, return on common equity was 9.89 percent and the efficiency ratio was 57.7 percent.
Liabilities outpace assets growth
Total assets stood at $10,708.66 million as on Dec. 31, 2016, up 11.25 percent compared with $9,626.11 million on Dec. 31, 2015. On the other hand, total liabilities stood at $9,632.92 million as on Dec. 31, 2016, up 11.91 percent from $8,607.82 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $6,859.21 million as on Dec. 31, 2016, up 15.73 percent compared with $5,926.99 million on Dec. 31, 2015. Deposits stood at $8,637.56 million as on Dec. 31, 2016, up 9.71 percent compared with $7,873.19 million on Dec. 31, 2015.
Investments stood at $2,785.97 million as on Dec. 31, 2016, up 4.10 percent or $109.68 million from year-ago. Shareholders equity stood at $1,075.74 million as on Dec. 31, 2016, up 5.64 percent or $57.45 million from year-ago.
Return on assets moved up 27 basis points to 1.03 percent in the quarter from 0.76 percent in the last year period. At the same time, return on equity increased 287 basis points to 9.89 percent in the quarter from 7.02 percent in the last year period.
Nonperforming assets moved up 7.09 percent or $1.95 million to $29.49 million on Dec. 31, 2016 from $27.54 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.28 percent in the quarter, down from 0.29 percent in the last year period.
Equity to assets ratio was 10.35 percent for the quarter, down from 10.68 percent for the previous year quarter. Average equity to average assets ratio was 10.35 percent for the quarter, down from 10.68 percent for the previous year quarter. Book value per share was $15.06 for the quarter, up 7.42 percent or $1.04 compared to $14.02 for the same period last year.
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