Higher mortgage banking revenue and commercial real estate lending offset merger costs at United Community Banks in Blairsville, Ga., leading to an improvement in third-quarter profit.

The $10.3 billion-asset company's net income rose 2% to $26 million from the previous quarter. Earnings per share rose 3% to 36 cents.

United Community in July acquired the $466 million-asset Tidelines Bancshares in Mount Pleasant, S.C. United also acquired Palmetto Bancshares in Greenville, S.C., in September 2015. The Tidelines deal was immediately accretive to earnings, Chairman and Chief Executive Jimmy Tallent said in a Wednesday news release.

Net interest revenue rose 5% to $79 million. Loans rose 7% to $6.7 billion, as United Community posted an increase in all categories except consumer installment loans. Owner-occupied commercial real estate, United Community's largest loan category, rose 4% to $1.5 billion.

Fee revenue rose 12% to $26 million on higher mortgage banking income and customer derivative fees.

Noninterest expense, including merger-related charges, rose 7% to $61 million.

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