United Bank Earnings and Mortgage Banking Summary slide image

United Bank Earnings and Mortgage Banking Summary

EARNINGS SUMMARY In thousands, except per share data Three Months Ended 4Q22 Interest & Fees Income $ 307,741 $ 3Q22 263,683 4Q21 195, 194 $ Year Ended 2022 1,001,990 $ 2021 795,117 Interest Expense $ 58,337 $ 23,061 11,516 $ Net Interest Income $ 249,404 $ 240,622 $ 183,678 $ Provision for Credit Losses $ 16,368 $ 7,671 $ (7,405) Noninterest Income $ 30,879 $ 32,749 $ 54,053 Noninterest Expense $ SA 137,542 $ 137,196 $ 151,793 SA SA SA EA EA 105,559 $ 52,383 896,431 $ 742,734 18,822 $ (23,970) 153,261 $ 278,128 555,087 $ 581,979 Income Before Income Taxes $ 126,373 $ 128,504 $ 93,343 $ Income Taxes SA $ 26,608 $ 25,919 $ 19,491 SA SA 475,783 $ 462,853 96,156 $ 95,115 Net Income $ EA 99,765 $ 102,585 $ 73,852 SA $ 379,627 $ 367,738 Diluted EPS Weighted Average Diluted Shares $0.74 134,799 $0.76 134,554 $0.56 131,296 $2.80 135,118 $2.83 129,513 Notes Merger-Related Expenses (before tax) Linked-Quarter (LQ) 20,391 537 $ 21,418 Net Income was $99.8 million in 4Q22 compared to $102.6 million in 3Q22, with diluted EPS of $0.74 in 4Q22 compared to $0.76 in 3Q22. Net Interest Income increased $8.8 million primarily due to higher interest income on earning assets driven by rising market interest rates, organic loan growth, and a change in the asset mix to higher earning assets. The increase in net interest income was partially offset by higher interest expense, driven by deposit rate repricing and higher average balances of FHLB borrowings. Provision Expense was $16.4 million in 4Q22 compared to $7.7 million in 3Q22. The increase was primarily due to loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions. Noninterest Income decreased $1.9 million primarily due to a decrease of $1.8 million in income from mortgage banking activities. Noninterest Expense increased $0.3 million. The expense for reserve for unfunded loan commitments increased $9.4 million and charitable contributions increased $1.8 million. Partially offsetting these increases were declines in other noninterest expense of $5.2 million, driven by a $3.9 million partial recovery of a 3Q accrual related to a litigation matter with a former commercial customer that was settled during 4Q, and declines in employee compensation of $2.1 million. 7
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