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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:
$39.00
▲(17.08% 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 acceleration
Sustained top-line and EPS gains across 2025 demonstrate durable demand and scalable core banking franchises (retail, small business, equipment finance). Consistent revenue expansion supports reinvestment, steadier net interest income, and provides a base for continued margin and capital improvements over months.
Improving margins & efficiency
Widening NIM and marked efficiency gains reflect sustainable earnings leverage from asset mix, deposit pricing discipline and expense control. Management expects modest NIM tailwinds and targeted expense growth, implying structural profitability gains that can persist through the next several quarters.
Strong capital & proactive returns
Robust capital ratios and active capital returns indicate both balance-sheet resilience and management confidence. Higher tangible equity and completed buybacks/dividend hikes provide buffers against shocks and show capacity to return capital while supporting organic growth and strategic flexibility over the medium term.
Negative Factors
Elevated charge-offs / credit volatility
A concentrated hit from a few commercial credits highlights credit volatility and downside risk to earnings and reserves. Even with management modeling 20–25 bps losses for 2026, episodic higher charge-offs can materially weigh on profitability and capital if stress persists or broadens across portfolios.
Weak deposit growth & funding pressure
Subdued deposit growth and end-period outflows raise funding pressure and force a higher loan-to-deposit ratio, increasing reliance on pricier funding or balance-sheet adjustments. Over the medium term, constrained low-cost deposits can compress margins if loan growth outpaces stable deposit inflows.
Equipment-finance concentration risk (Navitas)
Rapid Navitas growth raises portfolio concentration and sensitivity to equipment-finance downturns. The need to syndicate/sell originations to cap exposure signals limits on organic balance-sheet scaling and may pressure net interest margins or fee dynamics if secondary-market conditions shift.
United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.13B
Dividend Yield3.02%
Average Volume (3M)893.05K
Price to Earnings (P/E)13.2
Beta (1Y)1.02
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. Volume611,368
30 Day Avg. Volume893,054
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 Cap0.96
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit3.91
Enterprise Value/Ebitda8.68
Forecast
1Y Price Target
$116.95Price Target Upside251.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.98
Revenue Forecast (FY)$1.12B
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 primarily through interest income on loans, which is the largest component of its earnings. The bank provides various types of loans, including residential mortgages, commercial loans, and consumer loans, and earns interest from borrowers over the life of these loans. Additionally, UCB earns non-interest income from fees associated with deposit accounts, wealth management services, and transaction services. Other revenue sources include service charges, investment management fees, and income from mortgage banking activities. Significant partnerships with local businesses and community organizations enhance customer engagement, contributing to deposit growth and loan origination, which further bolster the bank's earnings.
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.Q4-2025 Updates
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.
Earnings Per Share and Profitability Improvement
Operating earnings per share: Q4 $0.71, a 13% year-over-year increase; full-year operating EPS grew 18% from $2.30 to $2.71. Q4 return on assets was 1.22% and return on tangible common equity reached 13.3%.
Margin and Efficiency Gains
Net interest margin increased to 3.62% in Q4 (up 4 bps; up 6 bps excluding loan accretion). For the year, margin improved by 23 basis points and the efficiency ratio improved by 264 basis points year-over-year.
Loan Growth and Product Production Milestones
Loan growth continued at a 4.4% annualized pace in the quarter. Retail and small business lending each exceeded $1 billion in annual production for the first time; Navitas equipment finance crossed $1 billion in originations for the first time.
Capital Actions and Capital Position
Executed share repurchase of 1 million shares in Q4 at an average price below $30; increased dividend to an annualized $1 per share in Q3; redeemed preferred stock. CET1 ratio remained solid at 13.4% and tangible common equity increased 21 bps to 9.92%.
Balance Sheet and Funding Improvements
Loan-to-deposit ratio increased to 82% (third quarter in a row rising). Cost of deposits improved 21 basis points to 1.76%; cumulative total deposit beta moved to 40% from 37%. Deposits grew 1% for the year.
Spread Income and NIM Tailwinds
Spread income grew 7% annualized in the quarter. Management expects additional NIM improvement in Q1 2026 of 2–4 basis points due to back-book repricing and liability repricing dynamics.
Business Wins and Market Recognition
Recognized #1 in retail client satisfaction in the Southeast (J.D. Power) for the 11th time; named a top bank to work for by American Banker for the ninth time; received an ABA Community Commitment Award. Expanded footprint with conversion of American National Bank (Fort Lauderdale) and opened a new office in Cary, NC.
Strategic Risk and Portfolio Actions
Reduced securities duration to improve earnings durability across rate scenarios; upgraded interest rate risk and deposit pricing systems and added talent to strengthen risk management.
Fee and Noninterest Income Growth Areas
Wealth management and treasury management businesses showed good growth; customer swaps and treasury services expected to provide continued fee growth in 2026.
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).
Noninterest Income Seasonality and Decline
Noninterest income was $40.5 million in Q4, down $2.8 million from the elevated prior quarter; mortgage income softened due to seasonality.
Operating Expense Pressures
Operating expenses on an operating basis were $151.4 million in Q4, an increase of $4 million quarter-over-quarter, driven in part by $1.5 million of higher group health insurance costs and higher incentive expense tied to record loan production.
Modest Deposit Growth and End-of-Period Outflows
Deposits grew only 1% for the year; management noted average balances excluding public funds were down slightly and end-of-period balances declined more markedly due to seasonality and strategic rate reductions for higher-cost single-service customers.
Slight Decline in Reserve Coverage
Allowance for credit losses: provision was $13.7 million in Q4 (including release of final $1.9 million Hurricane Helene reserve); ROL coverage moved down slightly to 1.16%.
Navitas Portfolio Concentration and Sales
Navitas grew rapidly (18% annualized growth this quarter before sales) and represented 9.5% of total loans; management intends to sell a higher share of Navitas originations to keep the portfolio at or below 10%, indicating sensitivity to equipment finance concentration and balance sheet management.
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
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.79
Positive
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.83
Very Positive
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.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
Neutral
33.31
Price Trends
33.56
Negative
31.90
Positive
31.01
Positive
Market Momentum
0.21
Positive
40.59
Neutral
20.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Neutral. The current price of 33.31 is below the 20-day moving average (MA) of 34.86, below the 50-day MA of 33.56, and above the 200-day MA of 31.01, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.48B | 10.68 | 14.31% | 2.03% | 0.99% | 4.94% | |
78 Outperform | $4.13B | 13.19 | 9.23% | 3.02% | 5.63% | 65.11% | |
76 Outperform | $4.64B | 15.40 | 9.44% | ― | 5.19% | 3454.95% | |
74 Outperform | $4.71B | 10.25 | 3.78% | 3.51% | -1.44% | -21.65% | |
72 Outperform | $3.82B | 19.42 | 5.52% | 2.47% | 20.26% | -35.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $3.88B | 16.38 | 13.85% | 1.70% | 6.55% | 12.94% |
* Financial Sector Average
UCB
United Community Banks
33.10
2.72
8.96%
ASB
Associated Banc-Corp
27.24
3.93
16.85%
BANF
BancFirst
111.56
-4.54
-3.91%
IBOC
International Bancshares
68.86
4.60
7.16%
RNST
Renasant
38.99
3.61
10.22%
TCBI
Texas Capital Bancshares
96.75
17.84
22.61%
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 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.
Stock Buyback
United Community Banks Announces New Stock Buyback Program
Neutral
Dec 8, 2025
On December 8, 2025, United Community Banks, Inc. announced that its Board of Directors approved a new common stock repurchase program, authorizing the buyback of up to $100 million of its outstanding common stock. This program will commence after the expiration of the current program on December 31, 2025, and will continue until December 31, 2026. The company has already repurchased $44 million of shares in 2025 under the existing program. The repurchase program’s execution is subject to various factors, including stock price performance and market conditions, and may be altered or discontinued at the company’s discretion.
The most recent analyst rating on (UCB) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.
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.