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United Community Banks (UCB)
NYSE:UCB
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United Community Banks
(NYSE:UCB)
Rating:81Outperform
Price Target:
$33.00
▲( 16.44% Upside)
United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.44B
Dividend Yield3.35%
Average Volume (3M)683.96K
Price to Earnings (P/E)13.4
Beta (1Y)1.20
Revenue Growth6.73%
EPS Growth37.84%
CountryUS
Employees2,982
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.59
Shares Outstanding121,499,280
10 Day Avg. Volume475,198
30 Day Avg. Volume683,957
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio10.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.33Price Target Upside14.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 a variety of financial services. The primary revenue streams include interest income from loans and other financing activities, such as mortgages and commercial loans. Additionally, the bank earns non-interest income from fees and charges on services like account maintenance, transaction processing, and investment advisory. UCB also benefits from strategic partnerships in the financial sector that enhance its service offerings and expand its customer base. Net interest margin, loan growth, and fee-based income are significant contributors to the company's earnings.
United Community Banks Financial Statement Overview
Summary
UCB exhibits solid financial health with strong revenue growth, improved profitability, and robust cash flow generation. The balance sheet shows low leverage and a strong equity position, reflecting financial stability. However, the absence of EBIT and EBITDA margins slightly limits operational efficiency analysis.Income Statement
United Community Banks demonstrated strong revenue growth from 2023 to 2024 with a 15.7% increase. The gross profit margin remains robust at 100% for both years, reflecting efficient cost management. However, the absence of EBIT and EBITDA margins in 2024 slightly limits the analysis of operating efficiency. The net profit margin increased from 23.3% in 2023 to 27.1% in 2024, indicating improved profitability.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio decreased to 0.07 in 2024, indicating low financial leverage and reduced reliance on debt. The return on equity improved to 7.4%, reflecting better utilization of equity capital. The equity ratio is strong at 12.4%, showcasing a solid capital structure. Overall, the balance sheet shows stability with a conservative approach to leverage.75
Positive
Cash Flow
Free cash flow grew considerably by 36.6% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.39, indicating efficient conversion of income into cash. The free cash flow to net income ratio of 1.20 further supports strong cash flow management. These metrics highlight the company's ability to generate cash and maintain liquidity.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 930.04M | 803.82M | 868.13M | 686.51M | 639.36M | Gross Profit |
| 930.04M | 871.95M | 868.13M | 686.51M | 639.36M | EBIT |
| 0.00 | 341.48M | 356.00M | 347.76M | 209.44M | EBITDA |
| 0.00 | 266.72M | 379.83M | 345.70M | 200.86M | Net Income Common Stockholders |
| 252.40M | 187.54M | 277.47M | 269.80M | 164.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.96B | 4.33B | 4.13B | 6.79B | 4.83B | Total Assets |
| 27.72B | 27.30B | 24.01B | 20.95B | 17.79B | Total Debt |
| 254.15M | 324.82M | 874.66M | 247.36M | 326.96M | Net Debt |
| -265.72M | -679.05M | 362.81M | -2.04B | -1.28B | Total Liabilities |
| 24.29B | 24.04B | 21.31B | 247.36M | 326.96M | Stockholders Equity |
| 3.43B | 3.26B | 2.70B | 2.22B | 2.01B |
| Cash Flow | Free Cash Flow | |||
| 302.69M | 221.49M | 564.60M | 332.84M | 140.22M | Operating Cash Flow |
| 349.73M | 293.97M | 607.31M | 359.32M | 158.68M | Investing Cash Flow |
| -991.04M | -163.29M | -2.02B | -1.81B | -1.58B | Financing Cash Flow |
| 157.31M | 226.34M | -258.78M | 2.16B | 2.52B |
United Community Banks Technical Analysis
Negative
28.34
Price Trends
27.42
Positive
29.57
Negative
29.67
Negative
Market Momentum
0.48
Positive
50.28
Neutral
15.48
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 28.34 is below the 20-day moving average (MA) of 28.69, above the 50-day MA of 27.42, and below the 200-day MA of 29.67, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 15.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
Our traditional approach to customer service, which is highly effective when executed in a physical branch with in-person interactions, may be less effective as customer habits and preferences evolve. Q4, 2024
United Community Banks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.44B | 13.43 | 7.64% | 3.35% | 6.73% | 37.84% | |
77 Outperform | $3.27B | 10.99 | 18.55% | 3.26% | 4.84% | 4.75% | |
71 Outperform | $3.29B | 10.80 | 7.83% | 2.54% | 13.04% | 31.39% | |
70 Outperform | $3.12B | 10.08 | 10.60% | 4.08% | 21.38% | 5.62% | |
66 Neutral | $2.94B | 12.75 | 9.11% | 4.44% | -0.47% | 5.97% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
64 Neutral | $3.28B | 41.25 | 2.98% | ― | 7.15% | -47.40% |
* Financial Sector Average
Performance Comparison
UCB
United Community Banks
28.34
3.84
15.67%
FBP
First Bancorp Puerto Rico
20.23
2.99
17.34%
FULT
Fulton Financial
17.16
1.20
7.52%
RNST
Renasant
34.63
5.71
19.74%
TCBI
Texas Capital Bancshares
71.44
12.41
21.02%
FHB
First Hawaiian
23.42
3.90
19.98%
United Community Banks Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 15.30%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for United Community Banks with strong financial results, effective cost management, and recognition for excellence. However, there are some concerns regarding economic uncertainties and a decline in non-interest income. M&A activities are also on hold due to market conditions.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
Operating earnings were $0.59 per share with an operating return on assets of 1.04%, both showing solid improvements from a year ago. Loans and deposits both grew at an annualized rate of just over 5%.
Recognition for Excellence
J.D. Power recognized United for the 11th time as the Retail Banking Satisfaction winner for the Southeast. Additionally, United was ranked number one in Trust and People.
Improvement in Net Interest Margin
Net interest margin increased by 10 basis points over the fourth quarter, driven by lower deposit costs.
Healthy Loan Portfolio Growth
The loan portfolio saw 7% annualized growth in C&I and 15% annualized growth in the Navitas book. HELOC loans also grew at an annualized rate of 13%.
Strong Deposit Growth
Deposit growth was $309 million or 5.3% annualized, outperforming expectations even with seasonal public funds outflow.
Successful Cost Management
Operating expenses were lower both from last quarter and when compared to the first quarter of 2024. Spread income increased 6.5% compared to last year.
Negative Updates
Non-Interest Income Decline
On an operating basis, non-interest income was down $4.8 million from last quarter, with a decline in fee income run rate.
Concerns Over Economic Uncertainty
There are concerns about potential impacts from tariffs and the trade war, which could affect the small business-dominated loan portfolio.
Market Conditions Affecting M&A Strategy
Current market conditions, with unattractive stock prices, have put potential M&A activities on hold for the next 12 to 18 months.
Company Guidance
During United Community Banks' first-quarter 2025 earnings call, several key financial metrics were highlighted, demonstrating a robust start to the fiscal year. Operating earnings reached $0.59 per share, with an operating return on assets of 1.04%, signifying a solid improvement over the previous year. The bank experienced an annualized loan growth rate of over 5% and a deposit growth rate of 5%, with a notable $46 million increase in non-interest-bearing DDA balances. The net interest margin improved by 10 basis points compared to the fourth quarter, primarily due to reduced deposit costs. Additionally, operating expenses decreased both sequentially and year-over-year, while non-performing assets and credit losses remained stable. The bank's CET1 ratio increased to 13.3%, and its TCE ratio rose by 21 basis points to exceed 9%. Despite uncertainties in the economy, United Community Banks remains well-positioned, supported by strong credit quality and proactive measures in managing its balance sheet.United Community Banks Corporate Events
Shareholder Meetings
United Community Banks Holds 2025 Shareholder Meeting
Neutral
May 15, 2025
United Community Banks, Inc. held its 2025 annual meeting of shareholders on May 14, 2025, where shareholders voted on four proposals. All director nominees were elected, the compensation of Named Executive Officers was approved, and it was decided to hold future advisory votes on executive compensation annually. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025.
The most recent analyst rating on (UCB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
United Community Banks Reports Strong Q1 2025 Results
Positive
Apr 22, 2025
United Community Banks, Inc. reported strong financial results for the first quarter of 2025, with net income of $71.4 million and a significant increase in earnings per share compared to the previous year. The company achieved growth in loans and deposits, improved net interest margin, and maintained stable credit quality. Notably, United Community Banks was recognized for customer satisfaction in the Southeast and announced plans to acquire American National Bank, enhancing its footprint in the South Florida market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.