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United Community Banks
(NYSE:UCB)
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Rating:77Outperform
Price Target:
$40.00
â–²(13.48% Upside)
Action:Reiterated
Date:08/03/26
The score is driven primarily by strong financial performance (improving profitability and a conservative balance sheet) and a constructive earnings outlook highlighted by ongoing margin expansion, solid loan growth, and healthy credit. Valuation is reasonable with an added dividend yield cushion. The main constraints are cash-flow variability, limited technical momentum data, and near-term uncertainty tied to the Navitas transition and deposit-cost pressures.
Positive Factors
Conservative balance sheet & capital
Very low leverage and above-target CET1 provide durable loss-absorption and strategic optionality. Strong capital cushions credit cycles, supports buybacks/M&A, and enables reinvestment of Navitas proceeds without forcing distress sales, sustaining franchise stability over the 2–6 month horizon.
Negative Factors
Reinvestment yield risk from Navitas sale
Redeploying ~$1.9B proceeds into lower-yield securities or cash can create a persistent near-term NIM drag (management models 20–30 bps). Until redeployment into loans or higher-yield assets occurs, spread income and reported margins may remain structurally pressured across several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & capital
Very low leverage and above-target CET1 provide durable loss-absorption and strategic optionality. Strong capital cushions credit cycles, supports buybacks/M&A, and enables reinvestment of Navitas proceeds without forcing distress sales, sustaining franchise stability over the 2–6 month horizon.
Read all positive factors
United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.24B
Dividend Yield2.82%
Average Volume (3M)1.07M
Price to Earnings (P/E)11.6
Beta (1Y)1.03
Revenue Growth4.17%
EPS Growth38.82%
CountryUS
Employees3,070
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.06
Shares Outstanding119,759,410
10 Day Avg. Volume1,029,023
30 Day Avg. Volume1,072,909
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.04
Price to Sales (P/S)2.47
P/FCF Ratio9.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$39.00Price Target Upside10.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3
Revenue Forecast (FY)$1.10B
United Community Banks Business Overview & Revenue Model
Company Description
United Community Banks, Inc. functions as the parent entity for United Community Bank, through which it delivers a comprehensive array of financial solutions. These offerings cater to a diverse clientele, encompassing commercial enterprises, indiv...
How the Company Makes Money
UCB primarily makes money through a traditional banking model that combines lending, deposit-gathering, and fee-based financial services. The largest driver is typically net interest income: the bank earns interest and fees on loans (such as comme...
United Community Banks Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying operating performance: consistent margin expansion, accelerating organic loan growth driven by a meaningful increase in revenue producers, low credit losses, and stable capital and liquidity. Key negatives were largely transitory or one-time items — notably the California lender license settlement and the Navitas reserve release/sale dynamics — which introduce near-term timing and margin uncertainty but are expected to be offset over time by increased loan production and strategic actions (Peach State integration, expense rationalization, and potential capital deployment). Overall the positive operating momentum and strong credit/capital position outweigh the short-term items.Positive Updates
Operating Earnings Growth
Operating EPS of $0.71, up 8% year-over-year. Reported GAAP EPS of $0.95 benefited from a $0.25 per-share reserve release related to Navitas.
Negative Updates
Navitas Transition Distorts Near-Term Metrics
Navitas reclassified to held-for-sale produced a $38.5M reserve release included in a $29.8M net reserve release, inflating GAAP results by ~$0.25 per share. Sale timing creates uncertainty for Q3 results and a static re-investment analysis suggests a potential near-term margin headwind of ~20–30 basis points.
Read all updates
Q2-2026 Updates
Positive
Negative
Operating Earnings Growth
Operating EPS of $0.71, up 8% year-over-year. Reported GAAP EPS of $0.95 benefited from a $0.25 per-share reserve release related to Navitas.
Read all positive updates
Company Guidance
Management said underlying fundamentals should remain strong despite near‑term timing from the pending Navitas sale (Navitas reserve release $38.5M, which added ~$0.25 to GAAP EPS); operating EPS was $0.71 (up 8% YoY) and GAAP EPS $0.95, total revenue +7% YoY, NIM 3.68% (+18 bps YoY, +3 bps QoQ) and spread income +14% annualized. Loan growth accelerated to 6.8% annualized (6.4% ex‑Navitas; management expects ~7% ex‑Navitas in Q3 and upper‑single‑digit growth next year) supported by a 17% expansion in producers (37 net hires since 9/30/2025); loan‑to‑deposit ex‑Navitas 76%. Credit remains healthy (bank‑only NCOs 9 bps, total NCOs 16 bps, past dues 11 bps, special mention/substandard accruing 2.5%); allowance after the Navitas release is 1.04% of loans and bank provision covered bank NCOs ($8.7M provision vs. $4.2M bank NCOs). Deposits were down $295M EOP (two‑thirds seasonal) but avg deposits ex‑public funds +$169M (3.3% annualized), deposit cost essentially flat (3‑month repricings ~3.09%, new CDs ~3.2%) though management expects slight drift higher in H2; securities reinvestment is being modeled around ~4.25% (with initial cash at ~3.75% for 1–3 months). Capital/CET1 was 13.5% (pro forma ~14.5% post‑Navitas), TCE just under 10%, repurchase authorization ~$63M with intent to buy back $50M of Peach State consideration; expense run‑rate roughly $154.5M (Q2 noninterest expense $159.9M including a $4.5M CA license charge), Peach State adds ~$4M quarterly with ~$2M run‑rate savings next year and Navitas ~$9M quarterly expense to drop on close, implying a pro forma Q4 expense base near $150M.United Community Banks Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.54B | 1.48B | 1.29B | 928.93M | 716.27M |
| Gross Profit | 1.12B | 1.01B | 879.09M | 782.52M | 804.22M | 724.06M |
| EBITDA | 519.89M | 456.52M | 363.94M | 277.51M | 402.70M | 345.70M |
| Net Income | 377.93M | 328.15M | 252.40M | 187.54M | 277.47M | 269.80M |
Balance Sheet | ||||||
| Total Assets | 29.05B | 28.00B | 27.72B | 27.30B | 24.01B | 20.95B |
| Cash, Cash Equivalents and Short-Term Investments | 4.24B | 3.95B | 4.96B | 4.33B | 4.13B | 6.79B |
| Total Debt | 380.60M | 205.40M | 449.15M | 324.82M | 1.19B | 247.36M |
| Total Liabilities | 25.31B | 24.36B | 24.29B | 24.04B | 21.31B | 18.72B |
| Stockholders Equity | 3.75B | 3.64B | 3.43B | 3.26B | 2.70B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 291.05M | 407.72M | 302.69M | 221.49M | 564.60M | 332.84M |
| Operating Cash Flow | 309.11M | 435.30M | 349.73M | 293.97M | 607.31M | 359.32M |
| Investing Cash Flow | -97.11M | 51.57M | -991.04M | -163.29M | -2.02B | -1.81B |
| Financing Cash Flow | -224.40M | -541.57M | 157.31M | 226.34M | -258.78M | 2.16B |
United Community Banks Technical Analysis
Positive
35.25
Price Trends
34.46
Positive
33.31
Positive
32.41
Positive
Market Momentum
0.25
Positive
56.25
Neutral
68.28
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 35.25 is below the 20-day moving average (MA) of 35.54, above the 50-day MA of 34.46, and above the 200-day MA of 32.41, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.28 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 46 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.76B | 11.42 | 13.16% | 1.86% | 2.00% | 2.22% | |
78 Outperform | $4.30B | 12.80 | 10.04% | 0.20% | 3.11% | 205.59% | |
77 Outperform | $4.24B | 11.58 | 10.33% | 2.84% | 4.17% | 38.82% | |
76 Outperform | $4.02B | 12.97 | 8.13% | 2.12% | 27.48% | 31.72% | |
71 Outperform | $5.83B | 10.69 | 9.86% | 3.08% | 20.10% | 273.24% | |
71 Outperform | $3.79B | 15.00 | 13.48% | 1.68% | -2.61% | 6.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
UCB
United Community Banks
35.83
6.62
22.67%
ASB
Associated Banc-Corp
31.40
7.96
33.95%
BANF
BancFirst
114.00
-6.64
-5.51%
IBOC
International Bancshares
76.22
8.13
11.93%
RNST
Renasant
43.93
8.42
23.70%
TCBI
Texas Capital Bancshares
101.29
20.11
24.78%
United Community Banks Corporate Events
Business Operations and StrategyExecutive/Board Changes
United Community Banks Adds Veteran Leader to Board
Positive
Aug 3, 2026
United Community Banks, Inc., a Southeast-focused financial holding company with $29.1 billion in assets as of June 30, 2026, provides banking, mortgage and wealth management services through 200 offices in Alabama, Florida, Georgia, North Carolin...
Business Operations and StrategyM&A Transactions
United Community Banks Completes Merger with Peach State
Positive
Aug 3, 2026
United Community Banks, Inc., a Greenville, S.C.-based financial holding company for United Community, has expanded its Southeast footprint through both traditional branch banking and specialized business services such as SBA lending and equipment...
Business Operations and StrategyDividendsFinancial DisclosuresLegal ProceedingsM&A Transactions
United Community Banks Reports Strong Q2 2026 Results
Positive
Jul 21, 2026
On July 21, 2026, United Community Banks reported second-quarter 2026 results marked by strong spread income, 6.8% annualized loan growth and its sixth consecutive quarter of net interest margin expansion, supported by more than $1 billion in loan...
Business Operations and StrategyM&A TransactionsShareholder Meetings
United Community Banks Sets Peach State Merger Election Deadline
Positive
Jul 10, 2026
On July 10, 2026, United Community Banks, Inc. and Peach State Bancshares, Inc. set a July 20, 2026, 5 p.m. Eastern deadline for Peach State shareholders of record to elect cash or stock as consideration in United’s planned acquisition of Pe...
Business Operations and StrategyM&A Transactions
United Community Banks to Sell Equipment Finance Subsidiaries
Positive
Jun 12, 2026
On June 11, 2026, United Community Bank agreed to sell its equipment finance subsidiaries Navitas Credit Corp. and NLFC Reinsurance Corp. to Navitas TopCo LLC, an entity for funds managed by Wafra Inc., for an estimated $1.9 billion in cash, subje...
Executive/Board ChangesShareholder Meetings
United Community Banks Shareholders Back Directors and Governance
Positive
May 15, 2026
At its annual meeting of shareholders held on May 13, 2026, United Community Banks, Inc. reported that 106,268,386 shares were represented in person or by proxy, constituting a quorum out of 119,684,031 shares outstanding and entitled to vote as o...
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.