Shares of United Community Banks Inc. (UCBI) dropped 6.1% after hours on Tuesday following the release of their second-quarter results. The bank, based in the southeastern U.S., reported a net income of $63.3 million, or 53 cents per share, compared to $66.8 million, or 61 cents per share, in the same quarter last year. While revenue increased to $213.9 million from $206.8 million in the prior-year quarter, the bank’s adjusted earnings per share came in at 55 cents, falling short of analysts’ expectations of 63 cents.
Factors Impacting Performance
Industry-wide deposit price competition has played a role in driving up deposit costs and weighing on United Community Banks’ net interest margins, according to executives. Despite this challenge, the bank managed to grow both their loans and deposits overall during the quarter.
The current economic landscape for regional banks has been disrupted by the collapse of Silicon Valley Bank and Signature Bank earlier this year. Additionally, higher interest rates have made borrowing more difficult for customers.
Western Alliance Bancorp Returns to Normal Business Operations
In related news, Western Alliance Bancorp (WAL), who also reported their results on Tuesday, stated that they are gradually returning to normal business operations following the recent market turmoil.