Coca-Cola sales drop 28% amid lockdowns
Coca-Cola's revenue plunged 28% in the second quarter, but the company said sales had begun to improve last month as lockdowns eased globally.
Half of Coke's sales come from stadiums, movie theaters and other places where people gather in large numbers, venues that have blinked out in the pandemic. April case volumes fell 25% worldwide, the company said. But by June, that decline narrowed to 10%.
Coke reported net income of $1.8 billion for the April-June period, down 32% from the same period a year ago. Excluding one-time items, the Atlanta company earned 42 cents per share. That tops Wall Street's per-share expectations by 2 cents, according to analysts polled by FactSet.
Coke's revenue fell to $7.2 billion, matching expectations.
Pinnacle Bank profits dip 36%
The parent company of Pinnacle Bank reported net income in the second quarter of 83 cents per share, down 36.6% from $1.31 per share earned in the second quarter a year ago.
The Nashville-based bank, which operates two branches in Chattanooga and is Chattanooga's fourth biggest bank, said the drop in profits reflects the sale of Pinnacle's non-prime automobile portfolio and additional reserves for loan losses in anticipation of a weaker economy.
"Those that perform best through any economic cycle are the ones who are willing and able to quickly adapt to both temporary shifts and permanent change," said M. Terry Turner, Pinnacle's president and chief executive officer. "In conjunction with the value we place on our long-term banking relationships, during the first and second quarters we granted payment deferrals on approximately $4.4 billion in loans and issued $2.2 billion in PPP loans to borrowers affected by the pandemic. We also fortified our balance sheet with additional liquidity and capital and began a diligent review of those borrowers we believe to be most impacted by the pandemic."
SmartBank profits rise after merger
The parent company of SmartBank more than doubled its second quarter earnings compared with a year ago after completing the merger with Progressive Financial Group, in March.
SmartFinancial, Inc. said net income rose to $6.2 million, or 41 cents per share, for the second quarter of 2020, compared to net income of $2.7 million, or 19 cent per share for the first quarter of 2020.
"While finalizing our Progressive Financial Group integration and conversion, we reported outstanding increases in revenue, in particular our non-interest income performance," said Billy Carroll, president and CEO of SmartBank. "Our team also continues to focus on our tremendous asset quality and have worked with many new and existing clients to secure PPP funding, creating a number of great opportunities for our bank. The outlook for our company remains very strong."
SmartBank said it originated a total of 2,800 Paycheck Protection Program (PPP) loans totaling $292.8 million.
SmartFinancial's Chairman, Miller Welborn, said the bank "strengthened our balance sheet, served our clients and our shareholders well and continued to increase the book value of our stock."
Average earning assets increased $532.0 million, which reflects a $376.1 million increase in average loans, a $21.1 million increase in securities and a $134.8 million increase in other earning assets. Average interest-bearing liabilities increased $353.8 million, driven by an increase of $168.5 million in average interest-bearing deposits and an increase of $185.2 million in borrowings.
Synovus results ahead of forecast
Earnings for the parent company of Synovus Bank fell 77% from a year ago, but the Columbus, Georgia-based banking firm still beat analysts expectations in the second quarter. Synovus Financial Corp., reported second quarter adjusted earnings per share of $0.23 compared to $1.00, previous year. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.05, for the quarter. Analysts' estimates typically exclude special items.
Second quarter adjusted revenue declined year-on-year to $472.80 million from $488.27 million. Analysts expected revenue of $445.18 million for the quarter.
The Group recorded provision for credit losses of $141.9 million reflecting significant economic stress due to the COVID-19 healthcare crisis.
Synovus said it $3 billion in Paycheck Protection Program loans to more than 19,000 customers and originated a record $1.4 billion in consumer mortgages during the three-month period.
United Community earnings drop 42%
BLAIRSVILLE, Ga. — United Community Banks Inc. (UCBI) on Tuesday reported second-quarter net income of $24.9 million, or 32 cents per share, down 42% from the same period a year ago.
The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 31 cents per share.
The bank holding company posted revenue of $163.8 million in the period. Its revenue net of interest expense was $149.5 million, also exceeding Street forecasts.
Lynn Harton, chairman and CEO of United Community Bank, said the drop in earnings was due largely to the continued reserve build anticipating potential future loan losses driven by COVID-19 effects on the economy.
"As the nation continues to grapple with the uncertainties of the future economic environment, I am pleased with the financial strength of the company and the performance of our employees, who continue to deliver for our customer," Harton said.