BLAIRSVILLE — United Community Banks Inc. (NASDAQ: UCBI) Thursday reported net income of $17.6 million, or 29 cents per diluted share, for the third quarter of 2014, a 38 percent increase over the same period a year earlier.
Earnings per share were up 7 percent from the second quarter, reflecting strong loan growth, a widening net interest margin and growth in fee revenue. For the first nine months of 2014, United reported net income of $49.4 million, or 81 cents per diluted share.
“By all measures, we had an exceptional third quarter,” said Jimmy Tallent, president and chief executive officer. “Strong loan growth and an expanding net interest margin increased net interest revenue by $2 million over the second quarter.”
He said the bank’s return on equity was 9.4 percent, up 200 basis points from a year ago.
“Third quarter net loan growth of $159 million was driven by strong production across all of our markets,” Tallent said. “Our strongest area, specialized lending, increased $132 million.”
That category, he said, includes health care, corporate, small business, asset-based and commercial real estate lending.
The bank also saw solid growth in its Coastal Georgia and Tennessee markets, he said.
“Our third quarter results confirm that we are on the right path,” Tallent said. “We remain sharply focused on growing loans and core deposits to increase net interest revenue, while expanding products to grow fee revenue.”
The bank has a widening net interest margin and expects its margin to stabilize at the current level into the fourth quarter and 2015, he said.
Nonperforming assets at the end of the quarter were $21.9 million, down 8 percent from the second quarter and 28 percent from a year ago.