United Community Banks (UCB) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: 3.02%
• Average Volume (3M): 825.97K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.07
• Revenue Growth: 5.63%
• EPS Growth: 65.11%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 119,613,174
• 10 Day Avg. Volume: 922,526
• 30 Day Avg. Volume: 825,965
• PEG Ratio: 0.40
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 9.32
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 7.85
• 1Y Price Target: $114.51
• Price Target Upside: 282.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.98
• Revenue Forecast (FY): $1.12B

• Rating: 78 Outperform
• Price Target: $34.00 ▲(13.56% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial performance (higher revenue/earnings, better margins, and a stronger capital position) and a positive earnings outlook with disciplined expenses and capital returns. Technicals are supportive but not strongly momentum-driven, while valuation looks reasonable with a solid dividend yield.

Positive Factors

Revenue & Earnings Growth

Sustained 12% revenue growth and meaningful net income gains reflect multi-product demand and stronger origination/fee channels. Broad-based production milestones across retail, small business and equipment finance support recurring revenue expansion and reduce reliance on any single business line over the next several quarters.

Margin & Efficiency Gains

Improving net interest margin and a materially better efficiency ratio point to durable earnings improvement driven by asset repricing, deposit repricing discipline and operating leverage. Management actions to reduce securities duration and upgrade IR risk systems also enhance margin stability across rate scenarios.

Capital Strength & Returns

Robust capital buffers and active capital returns signal a conservative balance-sheet posture combined with shareholder discipline. High CET1 and rising tangible equity provide loss-absorbing capacity, enabling continued lending and buybacks while maintaining regulatory headroom and financial flexibility for multi-quarter initiatives.

Negative Factors

Elevated Charge-Offs

A spike in charge-offs tied to two commercial credits highlights sensitivity to select commercial exposures and underwriting outcomes. Repeated idiosyncratic losses could force higher provisions, erode earnings and require tighter underwriting or higher capital cushions, reducing long-term earning power and growth flexibility.

Modest Deposit Growth

Low deposit growth and quarter-end outflows point to potential funding fragility. If retail and public deposit momentum stalls, the bank may need higher pricing or greater wholesale funding, which compresses net interest margins and limits sustainable loan-to-deposit expansion over multiple quarters.

Equipment-Finance Concentration Risk

Rapid Navitas growth increases portfolio concentration and exposure to equipment-cycle and credit volatility. Management's decision to sell more originations to cap on‑balance exposure reduces balance-sheet credit risk but shifts economics toward fee income and secondary-market execution, adding structural variability to future NII and growth.

United Community Banks Business Overview & Revenue Model

Company Description

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. It accepts various deposit products, including checking, savings, money market, and other deposit accounts. The company also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, it originates loans partially guaranteed by the SBA and USDA loan programs. Further, the company provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, it offers reinsurance on a property insurance contract; insurance agency services; treasury management; credit cards; payment and commerce solution, equipment finance, investment advisory, and other related financial services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. The company was founded in 1950 and is headquartered in Blairsville, Georgia.

How the Company Makes Money

UCB primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest collected on earning assets—mainly loans (commercial and industrial, commercial real estate, residential real estate, construction/land development, and consumer loans) and securities—and interest paid on funding sources, primarily customer deposits (e.g., checking, savings, money market, and certificates of deposit) and, when used, wholesale borrowings. The level of net interest income is influenced by loan and deposit volumes, the mix of fixed vs. variable-rate products, competitive pricing for deposits and loans, and changes in market interest rates that affect asset yields and funding costs. Noninterest income is generated from fees and service charges associated with banking activities, which typically include deposit account and payment-related fees (such as service charges and interchange-related revenue), wealth management and/or investment services fees, mortgage banking-related income (including origination and secondary-market sales/servicing-related revenue when applicable), and other client service fees such as treasury management/cash management (e.g., ACH, wires, and merchant/receivables services). UCB’s total earnings are also affected by credit performance (loan loss provisions and charge-offs), operating efficiency (personnel, occupancy, and technology costs), and its ability to attract low-cost deposits and originate and retain high-quality loans. Significant partnerships: null

United Community Banks Financial Statement Overview

Summary

Strong recent fundamentals: revenue and earnings rose meaningfully in 2025, margins improved, and the balance sheet appears more resilient with low leverage and stronger capital. Offsets include profitability still below 2021–2022 peak levels and some cash-flow volatility (free cash flow growth turned negative in 2025).

Income Statement

Revenue has grown strongly over the period, accelerating from 2024 to 2025, and profitability improved meaningfully year over year (net income rose from $252M in 2024 to $328M in 2025). Operating profitability also strengthened in 2025 with higher operating margins versus 2023–2024. The main weakness is volatility versus earlier peak profitability (2021–2022 margins were notably higher than recent years), suggesting earnings power can swing with the rate/credit cycle.

Balance Sheet

Balance sheet leverage looks conservative: debt relative to equity is low in 2025 and improved sharply versus 2022, indicating stronger balance-sheet resilience. Equity has steadily grown alongside assets, and returns on equity improved in 2025 versus 2023–2024. A key watch-out is that returns remain below the 2021–2022 highs, implying profitability is not back to prior peak levels despite the stronger capital position.

Cash Flow

Cash generation is solid, with free cash flow matching net income in 2025 and improving versus weaker conversion in 2023–2024. Operating cash flow has been relatively steady over time, but free cash flow growth turned negative in 2025 after gains in 2024, highlighting some year-to-year volatility. Overall cash performance is supportive, but less consistent than earnings and balance-sheet trends.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54B	1.48B	1.29B	928.93M	716.27M
Gross Profit	1.01B	879.09M	782.52M	804.22M	724.06M
EBITDA	456.52M	363.94M	277.51M	402.70M	345.70M
Net Income	328.15M	252.40M	187.54M	277.47M	269.80M
Balance Sheet
Total Assets	28.00B	27.72B	27.30B	24.01B	20.95B
Cash, Cash Equivalents and Short-Term Investments	3.95B	4.96B	4.33B	4.13B	6.79B
Total Debt	205.40M	449.15M	324.82M	1.19B	247.36M
Total Liabilities	24.36B	24.29B	24.04B	21.31B	18.72B
Stockholders Equity	3.64B	3.43B	3.26B	2.70B	2.22B
Cash Flow
Free Cash Flow	407.72M	302.69M	221.49M	564.60M	332.84M
Operating Cash Flow	435.30M	349.73M	293.97M	607.31M	359.32M
Investing Cash Flow	51.57M	-991.04M	-163.29M	-2.02B	-1.81B
Financing Cash Flow	-541.57M	157.31M	226.34M	-258.78M	2.16B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Negative. The current price of 29.94 is below the 20-day moving average (MA) of 32.34, below the 50-day MA of 33.18, and below the 200-day MA of 31.00, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 28.73 is Positive, neither overbought nor oversold. The STOCH value of 17.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCB.

United Community Banks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCB	78 Outperform	$3.58B	11.58	9.15%	3.02%	5.63%	65.11%
IBOC	76 Outperform	$4.20B	10.04	14.31%	2.03%	0.99%	4.94%
ASB	69 Neutral	$4.06B	7.75	9.83%	3.51%	-1.44%	-21.65%
RNST	69 Neutral	$3.36B	10.54	5.10%	2.47%	20.26%	-35.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANF	65 Neutral	$3.56B	14.89	13.85%	1.70%	6.55%	12.94%
TCBI	65 Neutral	$4.09B	12.34	9.30%	―	5.19%	3454.95%

United Community Banks Corporate Events

United Community Banks Posts Strong Q4 and 2025 Results

On January 14, 2026, United Community Banks reported fourth-quarter 2025 net income of $86.5 million and earnings per share of $0.70, up $0.09 from a year earlier, driven by an 11% rise in revenue to $278.4 million and a 36-basis-point expansion in net interest margin to 3.62% as loan growth improved its earning asset mix and disciplined deposit pricing reduced funding costs. For full-year 2025, net income rose to $328 million and diluted EPS increased 28% to $2.62, with operating EPS up 18% to $2.71, underpinned by 12% revenue growth to $1.06 billion, higher returns on assets and equity, and improved efficiency, even as provisions and net charge-offs increased modestly; management underscored the bank’s stronger profitability, nearly 10% tangible common equity ratio, continued capital returns through share repurchases and a higher dividend, and its confidence in further performance gains heading into 2026, despite a slight quarterly decline in customer deposits and elevated credit costs.

The most recent analyst rating on (UCB) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.