United Community Banks' Q2 EPS rises 14%

Overview

• United Community Banks Q2 EPS rises $0.09 yr/yr to $0.63

• Net income for Q2 reaches $78.7 mln, driven by higher net interest income

• Co completed acquisition of American National Bank

Outlook

• Company did not provide specific guidance for future quarters or full year

Result Drivers

• NET INTEREST INCOME - Higher net interest income was a primary driver of increased EPS, aided by a 14 basis point improvement in net interest margin

• CREDIT LOSS PROVISION - Lower provision for credit losses contributed to improved earnings, with a decrease of $3.6 mln from the previous quarter

• ASSET MIX - Loan growth was funded by cash flow from securities, improving the earning asset mix

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for United Community Banks Inc is $33.50, about 6.7% above its July 22 closing price of $31.27

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX96lX0r