United Community Banks (UCB)
NYSE:UCB
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United Community Banks
(NYSE:UCB)
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Rating:76Outperform
Price Target:
$37.00
▲(8.35% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial performance (improving profitability and very low leverage) and a positive earnings call outlook (continued margin expansion guidance, loan growth, and ongoing capital returns with an accretive acquisition). Valuation is supportive with a moderate P/E and ~3% yield. Technical indicators are mixed, with softer near-term momentum tempering the overall rating.
Positive Factors
Improving Profitability & Margins
Sustained TTM net and operating margins indicate durable earnings power from core banking activities. Higher margins support reinvestment, dividends and buybacks while insulating earnings from modest volume swings; this positions the franchise to compound equity through cycles.
Negative Factors
Declining Allowance Coverage
A modest decline in allowance coverage amid loan growth reduces the bank's loss-absorbing buffer. If credit stress increases, lower relative reserves could require larger provisions, pressuring earnings and capital deployment for several quarters, increasing cyclical vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability & Margins
Sustained TTM net and operating margins indicate durable earnings power from core banking activities. Higher margins support reinvestment, dividends and buybacks while insulating earnings from modest volume swings; this positions the franchise to compound equity through cycles.
Read all positive factors
United Community Banks (UCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.98B
Dividend Yield3.02%
Average Volume (3M)764.51K
Price to Earnings (P/E)11.3
Beta (1Y)1.04
Revenue Growth4.20%
EPS Growth29.58%
CountryUS
Employees2,982
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.74
Shares Outstanding119,686,646
10 Day Avg. Volume624,818
30 Day Avg. Volume764,511
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 Cap0.98
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda8.48
Forecast
1Y Price Target
$38.75Price Target Upside13.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.97
Revenue Forecast (FY)$1.14B
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 v...
How the Company Makes Money
UCB primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest collected on earning assets—mainly loans (commercial and industrial, commercial real estate, resid...
United Community Banks Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial picture: solid earnings growth (operating EPS +19% YoY), continued loan growth (4.5% annualized), consecutive margin expansion (NIM +29 bps YoY), strong credit metrics, active capital returns (dividend and buybacks), and a strategically attractive, accretive in-market acquisition. Lowlights were mostly manageable one-time or cyclical items — nonoperating charges, slight decline in allowance coverage, seasonal swings in noninterest income, modest NPA/charge-off fluctuations, and near-term expense additions for hiring — none of which materially undermined the quarter’s momentum.Positive Updates
Strong Quarterly Earnings and EPS Growth
Net income of ~ $84 million and GAAP EPS of $0.69; operating EPS of $0.70, representing a 19% increase year-over-year.
Negative Updates
One-Time and Nonoperating Charges Impact GAAP Results
GAAP expenses were $157.3 million with operating expenses $151.6 million. The quarter included nonoperating volatility from an FDIC special assessment accrual/release (release of $1.9 million) and a one-time payroll transition payment to bridge employee pay timing, creating noise in results.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Earnings and EPS Growth
Net income of ~ $84 million and GAAP EPS of $0.69; operating EPS of $0.70, representing a 19% increase year-over-year.
Read all positive updates
Company Guidance
Management guided to relatively flat deposit costs (spot cost ≈ quarterly average) with a cumulative deposit beta of 39%, and expects net interest margin to rise 3–5 basis points in Q2 (Q1 NIM 3.65%, +3 bps q/q, +29 bps y/y) helped by back‑book repricing and about $1.4 billion of assets repricing near 4.63% next year; loan growth is expected around 5–6% annualized. They’re targeting ~3.5% operating expense growth (new producer hires could add ~$1.0–1.2M per quarter and typically ramp in 5–6 months), plan continued capital returns (repurchased $37M in Q1, expect to repurchase the $50M in shares issued for Peach State by year‑end, have ~$63M remaining authorization and generate roughly $30M of excess capital per quarter), and project the Peach State deal (~$800M assets, $100M purchase price, 50/50 cash/stock, 1.9x TBV, 6x cost‑saved earnings, ~40% cost saves) to be $0.09 accretive in 2027 ($0.12 with the planned buyback); balance‑sheet metrics to remain strong: CET1 13.4%, TCE 9.92%, L/D 82%, allowance coverage 1.15%.United Community Banks Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.55B | 1.54B | 1.48B | 1.29B | 928.93M | 716.27M |
| Gross Profit | 1.05B | 1.01B | 879.09M | 782.52M | 804.22M | 724.06M |
| EBITDA | 462.27M | 456.52M | 363.94M | 277.51M | 402.70M | 345.70M |
| Net Income | 341.03M | 328.15M | 252.40M | 187.54M | 277.47M | 269.80M |
Balance Sheet | ||||||
| Total Assets | 28.18B | 28.00B | 27.72B | 27.30B | 24.01B | 20.95B |
| Cash, Cash Equivalents and Short-Term Investments | 177.03M | 3.95B | 4.96B | 4.33B | 4.13B | 6.79B |
| Total Debt | 120.50M | 205.40M | 449.15M | 324.82M | 1.19B | 247.36M |
| Total Liabilities | 24.52B | 24.36B | 24.29B | 24.04B | 21.31B | 18.72B |
| Stockholders Equity | 3.65B | 3.64B | 3.43B | 3.26B | 2.70B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 375.76M | 407.72M | 302.69M | 221.49M | 564.60M | 332.84M |
| Operating Cash Flow | 405.95M | 435.30M | 349.73M | 293.97M | 607.31M | 359.32M |
| Investing Cash Flow | 62.61M | 51.57M | -991.04M | -163.29M | -2.02B | -1.81B |
| Financing Cash Flow | -542.71M | -541.57M | 157.31M | 226.34M | -258.78M | 2.16B |
United Community Banks Technical Analysis
Positive
34.15
Price Trends
32.53
Positive
32.87
Positive
31.80
Positive
Market Momentum
>-0.01
Positive
52.48
Neutral
79.28
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 34.15 is above the 20-day moving average (MA) of 33.11, above the 50-day MA of 32.53, and above the 200-day MA of 31.80, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCB.
United Community Banks Risk Analysis
United Community Banks disclosed 46 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.32B | 14.47 | 9.93% | ― | 3.26% | 329.26% | |
76 Outperform | $3.98B | 11.25 | 9.41% | 3.02% | 4.20% | 29.58% | |
76 Outperform | $4.47B | 10.29 | 13.16% | 2.03% | 2.00% | 2.22% | |
75 Outperform | $4.65B | 8.92 | 10.04% | 3.51% | 16.97% | 234.25% | |
73 Outperform | $3.80B | 9.59 | 5.94% | 2.47% | 43.39% | -25.06% | |
72 Outperform | $3.74B | 14.45 | 13.62% | 1.70% | 4.32% | 10.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
UCB
United Community Banks
33.22
5.77
21.04%
ASB
Associated Banc-Corp
28.01
5.84
26.35%
BANF
BancFirst
111.31
-9.52
-7.88%
IBOC
International Bancshares
72.78
11.38
18.53%
RNST
Renasant
41.00
7.22
21.36%
TCBI
Texas Capital Bancshares
99.39
27.95
39.12%
United Community Banks Corporate Events
Executive/Board ChangesShareholder Meetings
United Community Banks Shareholders Back Directors and Governance
Positive
May 15, 2026
At its annual meeting of shareholders held on May 13, 2026, United Community Banks, Inc. reported that 106,268,386 shares were represented in person or by proxy, constituting a quorum out of 119,684,031 shares outstanding and entitled to vote as o...
Business Operations and StrategyExecutive/Board Changes
United Community Banks Announces CFO Retirement and Transition
Neutral
Apr 28, 2026
United Community Banks announced on April 28, 2026, that Executive Vice President and Chief Financial Officer Jefferson L. Harralson will resign and retire effective December 31, 2026, after nine years with the company. Harralson will remain in hi...
Business Operations and StrategyM&A Transactions
United Community Banks to Acquire Peach State Bancshares
Positive
Apr 21, 2026
On April 21, 2026, United Community Banks, Inc. and Peach State Bancshares, Inc. announced a definitive agreement for United to acquire Peach State and its subsidiary Peach State Bank Trust in a stock-and-cash merger valued at approximately $100....
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
United Community Banks Reports Strong Q1 2026 Results
Positive
Apr 21, 2026
United Community Banks, Inc. reported first-quarter 2026 net income of $84.3 million, or $0.69 per diluted share, on April 21, 2026, with operating EPS of $0.70 up 19% year over year, driven by 12% revenue growth, a 29-basis-point expansion in net...
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.