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United Community Banks, Inc. Reports Fourth Quarter Earnings

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UCB
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GREENVILLE, S.C., Jan. 14, 2026 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United...

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AI Summary

United Community Banks (UCB) reported strong financial results for Q4 2025, with net income reaching $86.5 million and a diluted EPS of $0.70, reflecting growth driven by increased revenues and improved asset returns. The bank's focus on enhancing loan growth and favorable economic conditions positions UCB favorably for 2026.

Sentiment Rationale

Strong earnings growth typically attracts investor interest and can lead to price appreciation. Larger gains in EPS and net income suggest operational efficiency that may boost share performance, supported by historical trends where positive earnings results often correlate with share price increases.

Trading Thesis

UCB likely to see upward momentum driven by solid Q4 earnings and repurchase activity in the near term.

Market-Moving

  • UCB's solid Q4 earnings beat expectations, likely boosting investor sentiment.
  • Share buyback program may increase share price due to reduced supply.
  • Continued loan growth enhances UCB's revenue potential moving forward.

Key Facts

  • UCB reports Q4 2025 net income of $86.5 million.
  • Diluted EPS of $0.70, up from Q4 2024.
  • Revenue increased 11% YoY to $278.4 million.
  • Return on assets improved to 1.21% in Q4 2025.
  • UCB repurchased 1 million shares at $29.84 each.

Companies Mentioned

  • United Community Banks, Inc. (UCB): Reports strong earnings and solid positions for 2026 growth.

Earnings

This analysis fits under 'Earnings' as it discusses UCB's financial performance and implications for future growth out of their quarterly results including net income, EPS, and asset profitability ratios.

United Community Banks, Inc. Reports Strong Fourth Quarter Earnings

GREENVILLE, S.C., Jan. 14, 2026 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) has announced impressive financial results for the fourth quarter of 2025. The company reported a net income of $86.5 million and pre-tax, pre-provision income of $126.3 million. Diluted earnings per share (EPS) for the quarter reached $0.70, marking a $0.09 increase from the same quarter last year, while remaining flat compared to the third quarter of 2025.

Year-End Financial Performance

For the full year of 2025, United Community Banks, Inc. recorded a net income of $328 million and pre-tax, pre-provision income of $471 million, compared to $252 million and $374 million respectively for 2024. Diluted EPS for 2025 was $2.62, a $0.58 increase from $2.04 in 2024. This growth is attributed to increased revenue and the absence of a one-time loss related to the sale of its manufactured housing loan portfolio.

  • Operating EPS for 2025: $2.71, an 18% increase from $2.30 in 2024.
  • Return on Assets (ROA): 1.21%, up from 1.06% year-over-year.
  • Return on Common Equity (ROE): 9.5%.
  • Net Interest Margin: 3.62%, reflecting a 36 basis points increase year-over-year.

Management Insights and Strategic Initiatives

Chairman and CEO Lynn Harton stated, “The fourth quarter marks a great ending to a rewarding year. Our teams delivered healthy loan growth for all of 2025, leading to improvements in our earning asset mix.” He also highlighted the successful repurchase of one million common shares at an average price of $29.84 and the redemption of $35 million of senior debt during the quarter. Harton expressed confidence in the bank’s positioning for continued success in 2026.

Credit Quality and Asset Performance

United reported net charge-offs of $16.4 million, or 0.34% annualized of average loans, which was an increase from 0.21% in Q4 2024. The company’s nonperforming assets slightly improved to 0.33% of total assets. The provision for credit losses was $13.7 million, an increase from $11.4 million a year prior.

  • Allowance for Credit Losses: 1.16% of loans, down from 1.19% at the end of Q3 2025.
  • Loan Growth: Loan production led to growth of $209 million, an annualized increase of 4.4% from the third quarter.

Financial Metrics and Dividends

In Q4 2025, total revenue reached $278.4 million, improving $27.5 million, or 11%, from the previous year. The efficiency ratio improved to 54.4%, demonstrating effective cost management strategies throughout the year. Additionally, the bank declared a quarterly common dividend of $0.25 per share, up 4% year-over-year.

Upcoming Conference Call

United Community Banks is scheduled to hold a conference call on Wednesday, January 14, 2026, at 9:00 a.m. ET to discuss these results and other business highlights. Interested participants can pre-register via the link here or can call in at 1-844-676-1337.

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