United Community Bank Inc. announced July 21 its net income for the second quarter of 2021 was $70.3 million.
The financial institution also declared its GAAP (Generally Accepted Accounting Principles) return on assets (ROA) was 1.46% and its return on common equity was 14.1% for the quarter. The second quarter also benefited from an allowance release of $13.6 million, said United in a press release.
“This has been an outstanding quarter for United,” said United chairman and CEO Lynn Harton. “Our team once again was recognized by JD Power as having the Best Retail Customer Satisfaction in the Southeast. On July 6, we closed on the acquisition of FinTrust, accelerating our wealth management strategy. We announced expansion into two of the strongest markets in the Southeast, Charlotte and Nashville, via agreements to acquire outstanding community banks in those markets. In addition to these strategic accomplishments, our bankers continued to deliver strong performance results. Core loan growth, excluding PPP loans, was solid and we continue to be optimistic about the remainder of the year given the momentum in our markets. Core deposit growth remains very strong. Credit results were excellent, as well. I couldn’t be more proud of the United team and I congratulate them for delivering these tremendous results.”
United also saw its total loans decrease by $288 million during the quarter, which was impacted by $411 million of Paycheck Protection Program loan forgiveness. Excluding the effect of PPP loans, core organic loan growth was 5% annualized and core transaction deposits grew by $432 million during the quarter, or 14% annualized.
The financial institution’s second quarter 2021 highlights also include:
- Earnings per share increased by 144% compared to second quarter 2020 on a GAAP basis and 147% on an operating basis, compared to first quarter 2021
- EPS decreased by 5% on both a GAAP and operating basis
- Pre-tax, pre-provision return on assets of 1.64%, or 1.67% on an operating basis
- Return on common equity of 14.1%
- Return on tangible common equity of 17.8% on an operating basis
- Loan production of $1.3 billion
- Mortgage closings of $680 million compared to $563 million a year ago
United also announced the following acquisitions:
- Aquesta Financial Holdings Inc. with $752 million in assets — expected to close in the fourth quarter of 2021
- FinTrust Capital Partners LLC, a registered investment adviser — closed on July 6 and added $2.1 billion in assets under management
- Reliant Bancorp Inc. with $3.1 billion in assets — expected to close in the first quarter of 2022
The bank operates 162 offices in Florida, Georgia, North Carolina, South Carolina and Tennessee.
