United Community Banks reported second-quarter GAAP earnings per share of $0.95, beating analyst expectations by $0.02, while revenue of $279.28 million missed estimates by $1.02 million. Net interest margin rose to 3.68%, up 18 basis points year-over-year and 3 basis points from the first quarter. The provision for credit losses was a negative $29.8 million, reflecting a $38.5 million release of the allowance on Navitas loans reclassified to held-for-sale; excluding that release, the provision was $8.7 million. Customer deposits declined $295 million from the prior quarter, largely due to seasonal public funds outflows, and the company maintained a preliminary Common Equity Tier 1 ratio of 13.5% while declaring a quarterly common dividend of $0.25 per share, up 4% year-over-year.
United Community Banks, Inc.EPS beat but revenue miss; net interest margin improved; provision release boosted earnings; deposits declined; dividend increased.