United Community Banks, Inc. (UCBI) has reported a robust start to the fiscal year with first-quarter revenues reaching $247.677 million, slightly surpassing market expectations of $246.9 million. The quarter was marked by notable growth in both loans and deposits, areas that traditionally experience seasonal sluggishness.
The company achieved a loan growth of $249 million, reflecting a 5.6% annualized increase. Customer deposits also saw a significant rise, growing by $309 million or an annualized rate of 5.4%. These developments contributed to an expansion in the net interest margin by 10 basis points, resulting in a $1.7 million increase in net interest income compared to the previous quarter, even as the period included two fewer accruing days.
Credit quality remained stable, with net charge-offs maintaining a steady rate of 0.21% of average loans. The company's provision for credit losses increased by $4.0 million from the previous quarter, corresponding to the loan growth and covering net charge-offs, which marginally elevated the allowance for credit losses to 1.21% of loans from 1.20% at the end of last year.
Furthermore, United Community Banks reported improved expense management compared to both the previous and the same quarter last year, reflecting ongoing efforts to optimize operations and enhance efficiency. This cost control alongside the robust growth in core financial metrics marks a promising trajectory for the bank as it progresses further into the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for United Community Banks Inc (UCB, Financial) is $32.64 with a high estimate of $35.00 and a low estimate of $29.00. The average target implies an upside of 32.80% from the current price of $24.58. More detailed estimate data can be found on the United Community Banks Inc (UCB) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, United Community Banks Inc's (UCB, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
