United Community Banks posts Q4 adjusted EPS in line with estimates

Overview

• U.S. bank's Q4 revenue rose 11% yr/yr, beating analyst expectations

• Adjusted EPS for Q4 met analyst expectations

• Company repurchased 1 mln shares and redeemed $35 mln of senior debt

Outlook

• United Community Banks expects strong economic conditions to continue in its markets

• Company anticipates continued effective execution across all business lines

Result Drivers

• NET INTEREST MARGIN - Improved asset mix and deposit pricing led to a 36 basis point increase in net interest margin year-over-year

• LOAN GROWTH - Strong loan production contributed to a $209 mln increase in loans from the third quarter

• CREDIT LOSS PROVISION - Provision for credit losses increased to $13.7 mln, up from $11.4 mln a year ago and $7.9 mln in the third quarter

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 $35.00, about 7.8% above its January 13 closing price of $32.48

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

Press Release: ID:nGNX5PGdF

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