United Community Banks Posts $0.49 Q3 EPS as Repositioning Drives $140M Net Loss
UCB sits 20% above its 52-week low of $28.65.
Summary
United Community Banks reported Q3 GAAP EPS of $0.49 and a net loss of $139.7 million, with a $10.0 million credit loss provision. The loss is the accounting cost of the $2.6 billion securities repositioning announced September 8th, which carried an expected ~$300 million pre-tax hit. The quarter also showed 9.8% core loan growth alongside the portfolio reposition. That compares with Q2 GAAP EPS of $0.95, which was flattered by a reserve release tied to the Navitas sale, so the headline number is not a clean read on core earnings. The key question is the adjusted, pre-tax-loss view of the quarter and whether the repositioning lifts net interest margin going forward. The 8-K filed this morning carries the full detail.
At the time of this announcement, UCB was trading at $34.44 on NYSE in the Finance sector, with a market capitalization of approximately $4.1B. The 52-week trading range was $28.65 to $37.18. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.