United Community Banks (UCB) AI Stock Analysis

• Market Cap: $3.94B
• Dividend Yield: 2.99%
• Average Volume (3M): 640.04K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.00
• Revenue Growth: 5.63%
• EPS Growth: 65.11%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.75
• Shares Outstanding: 121,556,910
• 10 Day Avg. Volume: 620,632
• 30 Day Avg. Volume: 640,042
• PEG Ratio: 0.47
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 7.57
• 1Y Price Target: $35.00
• Price Target Upside: 8.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.67
• Revenue Forecast (FY): $1.06B

• Rating: 77 Outperform
• Price Target: $35.00 ▲(8.06% Upside)

United Community Banks has a robust financial performance with strong profitability and a stable balance sheet. Technical indicators show bullish momentum, and the recent earnings call reflects positive sentiment with significant revenue growth. Valuation is reasonable, though not particularly compelling. Overall, the stock is well-positioned with a positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Strength

A robust balance sheet with low leverage enhances financial flexibility and reduces risk, supporting sustainable growth.

Cash Generation

Strong cash generation capabilities improve liquidity and provide resources for reinvestment and shareholder returns.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market conditions or competitive pressures, potentially impacting future growth.

Operating Expenses Increase

Rising operating expenses can pressure margins and reduce profitability, necessitating efficient cost management.

Senior Care Portfolio Challenges

Ongoing challenges in the senior care portfolio may limit growth and require strategic adjustments to mitigate risks.

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 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 Money

United 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 Financial Statement Overview

Summary

United Community Banks demonstrates strong financial health with solid profitability and a stable balance sheet. While revenue has declined in the TTM period, the company maintains strong margins and cash flow growth, indicating resilience. Low leverage and effective equity utilization further enhance its financial position, though attention to revenue growth is necessary.

Income Statement

United Community Banks has shown strong profitability with a consistent gross profit margin above 60% in recent periods. However, the TTM data indicates a revenue decline of 5%, which is a concern. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.043 in the TTM period, indicating low leverage and financial stability. Return on equity is solid at 8.98%, showcasing effective use of equity to generate profits. The equity ratio is also strong, highlighting a stable financial structure.

Cash Flow

Cash flow analysis reveals a significant 37.54% growth in free cash flow in the TTM period, indicating improved cash generation capabilities. The free cash flow to net income ratio is high, suggesting efficient conversion of profits into cash. However, the operating cash flow to net income ratio is low, which may indicate potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.48B	1.29B	928.93M	716.27M	695.60M
Gross Profit	878.32M	879.09M	782.52M	804.22M	724.06M	558.93M
EBITDA	499.96M	363.94M	277.51M	402.70M	345.70M	200.86M
Net Income	317.50M	252.40M	187.54M	277.47M	269.80M	164.09M
Balance Sheet
Total Assets	28.14B	27.72B	27.30B	24.01B	20.95B	17.79B
Cash, Cash Equivalents and Short-Term Investments	4.50B	4.96B	4.33B	4.13B	6.79B	4.83B
Total Debt	155.25M	449.15M	324.82M	1.19B	247.36M	326.96M
Total Liabilities	24.55B	24.29B	24.04B	21.31B	18.72B	15.79B
Stockholders Equity	3.60B	3.43B	3.26B	2.70B	2.22B	2.01B
Cash Flow
Free Cash Flow	439.30M	302.69M	221.49M	564.60M	332.84M	140.22M
Operating Cash Flow	466.65M	349.73M	293.97M	607.31M	359.32M	158.68M
Investing Cash Flow	-597.04M	-991.04M	-163.29M	-2.02B	-1.81B	-1.58B
Financing Cash Flow	3.78M	157.31M	226.34M	-258.78M	2.16B	2.52B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 32.39 is above the 20-day moving average (MA) of 30.84, above the 50-day MA of 30.56, and above the 200-day MA of 29.62, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCB.

United Community Banks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBI	79 Outperform	$4.36B	15.63	8.60%	―	5.19%	3454.95%
UCB	77 Outperform	$3.94B	12.81	9.01%	2.99%	5.63%	65.11%
ASB	74 Outperform	$4.50B	29.21	3.78%	3.43%	-1.44%	-21.65%
RNST	72 Outperform	$3.53B	18.70	4.54%	2.37%	20.26%	-35.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.51B	10.74	14.31%	1.93%	0.99%	4.94%
BANF	64 Neutral	$3.78B	16.11	14.11%	1.65%	6.55%	12.94%

United Community Banks Corporate Events

United Community Banks Announces New Stock Buyback Program

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.

United Community Banks Reports Strong Q3 2025 Results

United Community Banks, Inc. reported strong financial results for the third quarter of 2025, with net income of $91.5 million and a significant increase in diluted earnings per share compared to the previous year. The company achieved a 27% year-over-year revenue growth, driven by solid loan and deposit growth, as well as margin expansion. The return on assets and return on tangible common equity improved significantly, reflecting the company’s operational efficiency and leverage. Additionally, the company increased its quarterly common dividend and maintained strong capital ratios, indicating a positive outlook for stakeholders.