On Oct. 23, United Community Banks (NASDAQ:UCBI) released third-quarter earnings for the period ended Sept. 30.

  • Net interest income increased 17.9%, but the company's net interest margin deteriorated by 18 basis points.
  • Year over year, loans and deposits increased 20% and 16%, respectively, with help from the acquisitions of Southern National Bank and First Bank of the South.
  • Non-performing assets as a percentage of assets rose 63 basis points because of the slowdown in the housing and construction markets, and rising inventory levels.
  • The company repurchased 1.3 million shares at an average cost of $24.43 during the quarter.
  • United Community Banks has a two-star Motley Fool CAPS rating out of a possible five. Competitors Bank of America (NYSE:BAC), Wachovia (NYSE:WB), and BB&T (NYSE:BBT) carry ratings of three, two, and three stars, respectively.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Total Revenue

$83,124

$68,866

20.7%

Net Interest Income

$71,209

$60,420

17.9%

Net Profit

$22,536

$17,413

29.4%

EPS*

$0.46

$0.42

9.5%

*Non-GAAP EPS as reported by the company.

Get back to basics with a look at the income statement.

Ratio Checkup

Q3 2007

Q3 2006

Change*

Net Interest Margin

3.89%

4.07%

(0.18)

Efficiency Ratio

55.34%

56.19%

(0.85)

Nonperforming Assets / Assets

0.77%

0.14%

0.63

Return on Average Assets

1.11%

1.09%

0.02

Return on Average Equity

10.66%

13.22%

(2.56)

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Investments

$1,396,288

$1,017,827

37.2%

Loans

$5,952,749

$4,965,365

19.9%

Liabilities

Q3 2007

Q3 2006

Change

Deposits

$6,154,308

$5,309,219

15.9%

Total Liabilities

$7,346,839

$5,928,556

23.9%

Learn about bank assets and bank liabilities.

Related Foolishness:

Bank of America is an Income Investor recommendation.

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