United Community Banks (UCB) AI Stock Analysis

• Market Cap: $4.02B
• Dividend Yield: 2.9%
• Average Volume (3M): 662.61K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.21
• Revenue Growth: 3.00%
• EPS Growth: 42.78%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 121,474,460
• 10 Day Avg. Volume: 525,986
• 30 Day Avg. Volume: 662,614
• 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: 0.91
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 9.76
• 1Y Price Target: $35.00
• Price Target Upside: 3.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $35.00 ▲(3.92% Upside)

United Community Banks receives a strong overall score due to its robust financial performance and positive earnings call highlights. Technical indicators support a bullish outlook, while valuation metrics suggest the stock is reasonably priced. The successful acquisition and strategic growth initiatives further enhance its prospects.

United Community Banks Business Overview & Revenue Model

Company Description

United Community Banks (UCB) is a regional bank holding company headquartered in Blairsville, Georgia. UCB operates primarily in the southeastern United States, providing a range of financial services including personal banking, business banking, investment services, and mortgage lending. With a focus on community engagement, UCB serves its customers through a network of branches and ATMs, offering products such as checking and savings accounts, loans, and wealth management services.

How the Company Makes Money

United 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 Financial Statement Overview

Summary

United Community Banks demonstrates consistent revenue growth, stable profit margins, low financial leverage, and solid cash flow generation. While a slight decrease in ROE and net profit margin are areas for improvement, the company's financial stability and cash flow strength position it well for future growth.

Income Statement

United Community Banks has demonstrated solid revenue and profit growth over the years, with a TTM revenue increase of 14.2% from the previous year. The gross profit margin is stable at 60% in TTM. Although the net profit margin has slightly decreased to 17.7% from 17.9% in the previous annual report, it remains healthy. EBIT and EBITDA margins are consistent, at 22.6% and 25.4% respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with a healthy equity ratio of 12.6% in TTM. The debt-to-equity ratio is low at 0.07, suggesting low financial leverage and reduced risk. However, the return on equity has decreased slightly to 7.5% in TTM from 7.4% last year, indicating a slight decline in profitability relative to equity.

Cash Flow

Cash flow analysis reveals a positive trend with free cash flow growing by 6.3% in TTM, supporting future investments and dividends. The operating cash flow to net income ratio is 1.38, reflecting robust cash conversion from profits. The free cash flow to net income ratio of 1.23 indicates strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.48B	1.29B	928.93M	716.27M	695.60M
Gross Profit	885.51M	879.09M	782.52M	804.22M	724.06M	558.93M
EBITDA	374.83M	363.94M	277.51M	402.70M	345.70M	200.86M
Net Income	261.18M	252.40M	187.54M	277.47M	269.80M	164.09M
Balance Sheet
Total Assets	27.87B	27.72B	27.30B	24.01B	20.95B	17.79B
Cash, Cash Equivalents and Short-Term Investments	4.96B	4.96B	4.33B	4.13B	6.79B	4.83B
Total Debt	254.29M	449.15M	324.82M	1.19B	247.36M	326.96M
Total Liabilities	24.37B	24.29B	24.04B	21.31B	18.72B	15.79B
Stockholders Equity	3.50B	3.43B	3.26B	2.70B	2.22B	2.01B
Cash Flow
Free Cash Flow	321.91M	302.69M	221.49M	564.60M	332.84M	140.22M
Operating Cash Flow	359.56M	349.73M	293.97M	607.31M	359.32M	158.68M
Investing Cash Flow	-925.11M	-991.04M	-163.29M	-2.02B	-1.81B	-1.58B
Financing Cash Flow	240.33M	157.31M	226.34M	-258.78M	2.16B	2.52B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 33.68 is above the 20-day moving average (MA) of 31.10, above the 50-day MA of 30.80, and above the 200-day MA of 30.16, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 73.56 is Negative, neither overbought nor oversold. The STOCH value of 91.98 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
FBP	81 Outperform	$3.58B	11.80	18.38%	3.05%	3.10%	3.14%
RNST	78 Outperform	$3.72B	15.39	5.21%	2.23%	21.87%	-3.27%
UCB	76 Outperform	$4.02B	14.83	7.81%	2.90%	3.00%	42.78%
FULT	74 Outperform	$3.60B	11.50	10.08%	3.58%	17.61%	1.89%
TCBI	72 Outperform	$3.97B	34.47	4.01%	―	6.86%	-8.81%
FHB	72 Outperform	$3.19B	13.07	9.40%	4.00%	-2.56%	12.05%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%

United Community Banks Corporate Events

United Community Banks Announces Preferred Stock Redemption

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.

United Community Banks Reports Strong Q2 2025 Results

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.