United Community Banks (UCB) AI Stock Analysis

• Market Cap: $3.92B
• Dividend Yield: 3.01%
• Average Volume (3M): 504.38K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.19
• Revenue Growth: 3.00%
• EPS Growth: 42.78%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 121,474,460
• 10 Day Avg. Volume: 555,829
• 30 Day Avg. Volume: 504,376
• 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: 0.93
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 9.35
• 1Y Price Target: $35.00
• Price Target Upside: 8.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $37.00 ▲(14.80% Upside)

United Community Banks scores well due to strong earnings growth, positive technical indicators, and a reasonable valuation. The earnings call highlighted robust financial performance and strategic acquisitions, contributing to an optimistic outlook. However, concerns about revenue growth and cash flow slightly temper the overall score.

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 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 strong profitability and a solid balance sheet with low leverage. However, declining revenue growth and free cash flow raise concerns about future growth prospects and liquidity. The company needs to address these challenges to sustain its financial health.

Income Statement

United Community Banks shows strong profitability with a consistent gross profit margin above 60% and a net profit margin of 18.56% in the TTM. However, the revenue growth rate has declined by 17.1% in the TTM, indicating potential challenges in revenue generation. The EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.043 in the TTM, indicating prudent financial leverage. Return on equity is stable at 7.83%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 78.3% in the TTM, raising concerns about cash generation capabilities. However, the free cash flow to net income ratio is robust at 90.92%, indicating efficient conversion of income into cash. The operating cash flow to net income ratio is low, suggesting potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.48B	1.29B	928.93M	716.27M	695.60M
Gross Profit	899.83M	879.09M	782.52M	804.22M	724.06M	558.93M
EBITDA	391.50M	363.94M	277.51M	402.70M	345.70M	200.86M
Net Income	273.30M	252.40M	187.54M	277.47M	269.80M	164.09M
Balance Sheet
Total Assets	28.09B	27.72B	27.30B	24.01B	20.95B	17.79B
Cash, Cash Equivalents and Short-Term Investments	4.28B	4.96B	4.33B	4.13B	6.79B	4.83B
Total Debt	155.14M	449.15M	324.82M	1.19B	247.36M	326.96M
Total Liabilities	24.47B	24.29B	24.04B	21.31B	18.72B	15.79B
Stockholders Equity	3.61B	3.43B	3.26B	2.70B	2.22B	2.01B
Cash Flow
Free Cash Flow	319.39M	302.69M	221.49M	564.60M	332.84M	140.22M
Operating Cash Flow	351.30M	349.73M	293.97M	607.31M	359.32M	158.68M
Investing Cash Flow	-640.64M	-991.04M	-163.29M	-2.02B	-1.81B	-1.58B
Financing Cash Flow	301.43M	157.31M	226.34M	-258.78M	2.16B	2.52B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 32.23 is below the 20-day moving average (MA) of 32.53, above the 50-day MA of 31.44, and above the 200-day MA of 29.96, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 45.85 is Neutral, 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	3.54B	11.84	17.90%	3.17%	3.10%	3.14%
UCB	77 Outperform	$3.92B	14.70	7.81%	3.01%	3.00%	42.78%
RNST	76 Outperform	3.64B	15.32	4.23%	2.30%	21.87%	-3.27%
FULT	73 Outperform	3.53B	11.41	9.73%	3.66%	17.61%	1.89%
TCBI	73 Outperform	3.98B	34.59	3.82%	―	6.86%	-8.81%
FHB	72 Outperform	3.20B	13.41	9.15%	4.05%	-2.56%	12.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.