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United Community Banks (UCB)
NYSE:UCB
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United Community Banks (UCB) AI Stock Analysis

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UCB

United Community Banks

(NYSE:UCB)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$37.00
▲(14.80% Upside)
United Community Banks scores well due to strong earnings growth, positive technical indicators, and a reasonable valuation. The earnings call highlighted robust financial performance and strategic acquisitions, contributing to an optimistic outlook. However, concerns about revenue growth and cash flow slightly temper the overall score.

United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)

United Community Banks Business Overview & Revenue Model

Company DescriptionUnited 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 MoneyUnited Community Banks generates revenue through various key streams, primarily from net interest income and non-interest income. Net interest income is earned from the difference between interest collected on loans and interest paid on deposits. The bank offers a variety of loans, including personal, commercial, and mortgage loans, which are significant contributors to this income. Additionally, UCB earns non-interest income through fees associated with account services, loan origination, wealth management, and investment services. The bank also benefits from strategic partnerships with local businesses and organizations, enhancing its customer base and product offerings, which further contribute to its overall earnings.

United Community Banks Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant growth in operating earnings, net interest margin, and successful strategic acquisition. While there were minor concerns about noninterest income and limitations on Navitas loan sales, the overall outlook remains optimistic.
Q2-2025 Updates
Positive Updates
Strong Operating Earnings Growth
Operating earnings per share for the quarter was $0.66, an increase of 14% year-over-year.
Net Interest Margin Expansion
Net interest margin expanded to 350 basis points, an improvement of 14 basis points over the last quarter.
Controlled Expense Growth
Efficiency ratio improved to 54.8%, an improvement of 222 basis points compared to last year.
Successful Acquisition and Integration
Closed the acquisition of American National Bank, expanding the South Florida footprint.
Robust Loan Growth
Loan growth was 4.2% annualized with strong pipelines heading into the third quarter.
Healthy Capital Ratios
CET1 ratio remained at 13.3%, providing strength and flexibility for future opportunities.
Negative Updates
Noninterest Income Decrease
Noninterest income was down $1 million from last quarter, driven by a negative swing in the MSR mark and negative fees due to senior debt redemption.
Navitas Loan Sales Limitations
Navitas loans approaching a 10% limit of total loans, necessitating continued loan sales to maintain diversification.
Company Guidance
In United Community Bank's second quarter 2025 earnings call, the bank reported a strong performance with operating earnings per share increasing by 14% year-over-year to $0.66. The net interest margin expanded to 350 basis points, up by 14 basis points from the previous quarter. Customer deposits, excluding merger activities, grew 1.3% annualized, while loan growth was at a 4.2% annualized rate. Credit quality remained robust, with net charge-offs at 18 basis points, and nonaccruals and past dues improving from already low levels. The efficiency ratio improved by 222 basis points from the previous year to 54.8%. The bank's CET1 ratio stood at 13.3%, and they were active in capital management, including the repurchase of 507,000 shares. The bank also completed the acquisition of American National Bank, enhancing its South Florida presence. Looking ahead, the bank remains optimistic about continued growth, despite uncertainties in the macroeconomic environment.

United Community Banks Financial Statement Overview

Summary
United Community Banks demonstrates strong profitability and a solid balance sheet with low leverage. However, declining revenue growth and free cash flow raise concerns about future growth prospects and liquidity. The company needs to address these challenges to sustain its financial health.
Income Statement
72
Positive
United Community Banks shows strong profitability with a consistent gross profit margin above 60% and a net profit margin of 18.56% in the TTM. However, the revenue growth rate has declined by 17.1% in the TTM, indicating potential challenges in revenue generation. The EBIT and EBITDA margins remain healthy, reflecting efficient operational management.
Balance Sheet
78
Positive
The company maintains a low debt-to-equity ratio of 0.043 in the TTM, indicating prudent financial leverage. Return on equity is stable at 7.83%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.
Cash Flow
65
Positive
Cash flow analysis reveals a significant decline in free cash flow growth by 78.3% in the TTM, raising concerns about cash generation capabilities. However, the free cash flow to net income ratio is robust at 90.92%, indicating efficient conversion of income into cash. The operating cash flow to net income ratio is low, suggesting potential liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.47B1.48B1.29B928.93M716.27M695.60M
Gross Profit899.83M879.09M782.52M804.22M724.06M558.93M
EBITDA391.50M363.94M277.51M402.70M345.70M200.86M
Net Income273.30M252.40M187.54M277.47M269.80M164.09M
Balance Sheet
Total Assets28.09B27.72B27.30B24.01B20.95B17.79B
Cash, Cash Equivalents and Short-Term Investments4.28B4.96B4.33B4.13B6.79B4.83B
Total Debt155.14M449.15M324.82M1.19B247.36M326.96M
Total Liabilities24.47B24.29B24.04B21.31B18.72B15.79B
Stockholders Equity3.61B3.43B3.26B2.70B2.22B2.01B
Cash Flow
Free Cash Flow319.39M302.69M221.49M564.60M332.84M140.22M
Operating Cash Flow351.30M349.73M293.97M607.31M359.32M158.68M
Investing Cash Flow-640.64M-991.04M-163.29M-2.02B-1.81B-1.58B
Financing Cash Flow301.43M157.31M226.34M-258.78M2.16B2.52B

United Community Banks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.23
Price Trends
50DMA
31.44
Positive
100DMA
30.12
Positive
200DMA
29.96
Positive
Market Momentum
MACD
0.17
Positive
RSI
53.09
Neutral
STOCH
45.85
Neutral
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 32.23 is below the 20-day moving average (MA) of 32.53, above the 50-day MA of 31.44, and above the 200-day MA of 29.96, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 45.85 is Neutral, 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 44 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
3.54B11.8417.90%3.17%3.10%3.14%
77
Outperform
$3.92B14.707.81%3.01%3.00%42.78%
76
Outperform
3.64B15.324.23%2.30%21.87%-3.27%
73
Outperform
3.53B11.419.73%3.66%17.61%1.89%
73
Outperform
3.98B34.593.82%6.86%-8.81%
72
Outperform
3.20B13.419.15%4.05%-2.56%12.05%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UCB
United Community Banks
32.23
3.81
13.41%
ASB
Associated Banc-Corp
26.27
5.52
26.60%
BANF
BancFirst
131.81
26.44
25.09%
IBOC
International Bancshares
69.77
10.13
16.99%
RNST
Renasant
38.31
5.95
18.39%
TCBI
Texas Capital Bancshares
86.98
15.27
21.29%

United Community Banks Corporate Events

Business Operations and Strategy
United Community Banks Announces Preferred Stock Redemption
Neutral
Aug 15, 2025

On August 15, 2025, United Community Banks announced the redemption of all outstanding shares of its 6.875% Series I Non-Cumulative Perpetual Preferred Stock, scheduled for September 15, 2025. This move reflects the company’s active management of its capital structure, involving a cash payment of $25,000 per share, totaling an $88 million aggregate liquidation preference. The redemption will cease all rights of the holders of the Preferred Stock and Depositary Shares, except for receiving the redemption price.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
United Community Banks Reports Strong Q2 2025 Results
Positive
Jul 23, 2025

United Community Banks, Inc. reported strong financial results for the second quarter of 2025, with net income of $78.7 million and a pre-tax, pre-provision income of $112.3 million. The company achieved a 14% increase in operating diluted earnings per share compared to the previous year, driven by higher net interest income and lower credit loss provisions. The acquisition of American National Bank contributed to loan growth, and the company saw improvements in net interest margin and operating efficiency. The quarter also marked the company’s 75th anniversary, celebrated alongside its annual customer appreciation day.

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.Date of analysis: Sep 09, 2025