United Community Banks (UCB)
NYSE:UCB
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United Community Banks
(NYSE:UCB)
Select Model
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Rating:78Outperform
Price Target:
$35.00
▲(2.97% Upside)
Action:ReiteratedDate: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 & EPS Growth
Sustained top-line and earnings gains across 2025 reflect diversified loan production and fee engines, showing durable demand and improved operating leverage. Consistent revenue expansion supports reinvestment, dividends and buybacks, providing lasting earnings power beyond a single quarter.
Negative Factors
Elevated Credit Costs / Charge-offs
Recent concentrated commercial charge-offs reveal portfolio sensitivity to specific credits and economic stress. Higher, volatile loss rates can erode earnings and require elevated provisions, making credit performance a persistent profitability risk across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & EPS Growth
Sustained top-line and earnings gains across 2025 reflect diversified loan production and fee engines, showing durable demand and improved operating leverage. Consistent revenue expansion supports reinvestment, dividends and buybacks, providing lasting earnings power beyond a single quarter.
Read all positive factors
United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.07B
Dividend Yield3.02%
Average Volume (3M)881.65K
Price to Earnings (P/E)11.6
Beta (1Y)1.05
Revenue Growth5.63%
EPS Growth65.11%
CountryUS
Employees2,982
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.71
Shares Outstanding119,613,174
10 Day Avg. Volume702,643
30 Day Avg. Volume881,655
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.04
Price to Sales (P/S)2.47
P/FCF Ratio9.32
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit4.01
Enterprise Value/Ebitda8.91
Forecast
1Y Price Target
$117.46Price Target Upside245.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.99
Revenue Forecast (FY)$1.14B
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 v...
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, resid...
United Community Banks Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operating and financial performance: strong revenue and EPS growth, margin expansion, record production milestones across retail, small business and equipment finance, solid capital ratios and constructive capital return actions (buybacks, dividend increase, preferred redemption). Challenges included a higher quarterly charge-off driven by two specific commercial credits, modest deposit growth with some end-of-period outflows, a slight decline in reserve coverage, and elevated operating expenses in the quarter due to health insurance and incentives. Management guidance was constructive (NIM tailwinds, targeted expense growth of 3%–3.5%, intent to be more assertive on buybacks) and they reiterated confidence in credit quality with an expected 20–25 bps loss rate for 2026.Positive Updates
Quarterly and Annual Revenue Growth
Q4 revenue grew 11% year-over-year; full-year revenue topped $1 billion with 12% year-over-year growth, marking record annual revenue for the company.
Negative Updates
Increase in Quarterly Charge-Offs
Net charge-offs rose to 34 basis points in Q4, an increase from the prior quarter driven primarily by charge-offs on two C&I loans that accounted for a $9 million increase in charge-offs (including a $6 million hit on a $14 million franchise loan and a $4 million owner-occupied SBA loan where the guarantee was not pursued).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Annual Revenue Growth
Q4 revenue grew 11% year-over-year; full-year revenue topped $1 billion with 12% year-over-year growth, marking record annual revenue for the company.
Read all positive updates
Company Guidance
Management’s guidance for 2026 emphasized modest margin and loan growth, controlled expenses and stable credit: they expect net interest margin to be up about 2–4 bps in Q1 (helped by ~$1.4B of assets paying down near 4.90% and ~$1.4B of CDs maturing in Q1 at ~3.32% with CD retention roughly 90%), noted $6.0B of fixed‑rate loans at 5.19% (new fixed originations near 6.45%), and modeled deposit growth a few hundred basis points below loan growth with the loan‑to‑deposit ratio rising from 82%; capital and liquidity remain strong (CET1 13.4%, TCE 9.92%). They’re targeting expense growth of ~3.0–3.5% for the year (Q1 operating expenses expected to be roughly flat), expect continued efficiency‑ratio improvement, plan to be more assertive on buybacks after repurchasing 1.0M shares at just under $30, and see 2026 credit losses in the ~20–25 bps range (Q4 NCOs were 34 bps; full‑year 2025 loss rate ~22 bps).United Community Banks Financial Statement Overview
Summary
Income Statement
79
Positive
Balance Sheet
83
Very Positive
Cash Flow
72
Positive
| 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
Positive
33.99
Price Trends
32.61
Positive
32.16
Positive
31.34
Positive
Market Momentum
0.49
Negative
65.91
Neutral
86.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Positive. The current price of 33.99 is above the 20-day moving average (MA) of 31.41, above the 50-day MA of 32.61, and above the 200-day MA of 31.34, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 86.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCB.
United Community Banks Risk Analysis
United Community Banks disclosed 45 risk factors in its most recent earnings report. United Community Banks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Community Banks Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.07B | 11.58 | 9.15% | 3.02% | 5.63% | 65.11% | |
76 Outperform | $4.46B | 10.04 | 13.41% | 2.03% | 0.99% | 4.94% | |
73 Outperform | $4.56B | 7.75 | 9.83% | 3.51% | -1.44% | -21.65% | |
69 Neutral | $3.71B | 10.54 | 5.10% | 2.47% | 20.26% | -35.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $3.82B | 14.73 | 13.85% | 1.70% | 6.55% | 12.94% | |
65 Neutral | $4.46B | 12.34 | 9.30% | ― | 5.19% | 3454.95% |
* Financial Sector Average
UCB
United Community Banks
33.99
11.14
48.73%
ASB
Associated Banc-Corp
27.48
8.95
48.27%
BANF
BancFirst
113.76
12.70
12.56%
IBOC
International Bancshares
71.68
16.35
29.54%
RNST
Renasant
39.40
12.40
45.91%
TCBI
Texas Capital Bancshares
100.79
38.78
62.54%
United Community Banks Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
United Community Banks Posts Strong Q4 and 2025 Results
Positive
Jan 14, 2026
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 i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.