How did UCB's Q1 2024 EPS outperform forecasts?

United Community Banks (UCB) reported an EPS of $0.61 for Q1 2024, which outperformed forecasts due to several key factors:

1. **Strong Revenue Surprise**: UCB's revenue exceeded expectations with a surprise of $75.8 million. This significant upside indicates that the bank's revenue were substantially higher than analysts anticipated.

|code|Ticker|Name|Date|Basic Earnings per Share|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|---|
|UCB|UCB.N|United Community Banks|20230630|1.05|2.36673E8|6.3288E7|169|
|UCB|UCB.N|United Community Banks|20230930|1.44|2.34533E8|4.7866E7|169|
|UCB|UCB.N|United Community Banks|20231231|1.54|1.80363E8|1.409E7|169|
|UCB|UCB.N|United Community Banks|20240331|0.51|2.38736E8|6.2631E7|169|

|code|Ticker|Name|Date|Basic Earnings per Share|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|UCB|UCB.N|United Community Banks|20230630|1.05|-0.06|169|
|UCB|UCB.N|United Community Banks|20230930|1.44|0|169|
|UCB|UCB.N|United Community Banks|20231231|1.54|0.01|169|
|UCB|UCB.N|United Community Banks|20240331|0.51|0.03|169|

2. **Operating EPS Resilience**: Despite a decline in net income and EPS when compared to the previous year, the bank's operating EPS showed resilience, increasing by 18% to $0.53. This suggests that the bank's core operations performed well, which could have contributed to the positive EPS surprise.
3. **Asset Growth and Loan Portfolio Performance**: UCB's total assets grew by 14% year-over-year, reaching $27.2 billion. The loan portfolio also saw a positive growth rate, increasing by 2.5% annually to $18.3 billion. These growths indicate a strong demand for UCB's lending services, which can positively impact income and profitability.
4. **Deposit Growth and Interest Income**: Deposits grew at a strong annualized rate of 8%, which allowed UCB to fund loan growth effectively. This growth in interest-bearing assets, along with a modest increase in net interest revenue, contributed to the bank's overall financial performance.

In conclusion, UCB's Q1 2024 EPS outperformed forecasts due to a combination of strong revenue exceeding expectations, resilient operating EPS, significant asset growth, and effective deposit and loan portfolio management. These factors collectively contributed to the bank's better-than-expected financial results.