UCB

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. United Community Banks (UCB) is back on investors’ radar after reporting second quarter 2026 results, including net income of $115.64 million and net charge offs of $7.864 million, alongside updated metrics for the first half. See our latest analysis for United Community Banks. United Community Banks’ recent earnings miss has taken some heat out of the stock in the very short term, with a 1-day share price return of a 1.89% decline, but a 30-day share price return of 7.61% and a 1-year total shareholder return of 16.61% point to momentum building over a longer stretch. If United Community Banks’ update has you rethinking your watchlist, this can be a good moment to widen your search and check out 18 top founder-led companies After the post earnings pullback, United Community Banks now trades at $35.35, sitting between a modest discount to analyst targets and a far larger implied intrinsic discount. Which reference point better reflects fair value? On the most followed narrative, United Community Banks screens as modestly undervalued, with a fair value of $38.17 against the latest close at $35.35. This puts the focus on what is built into those forecasts. Read the complete narrative. Curious what is underpinning that valuation gap? The narrative leans heavily on steadier margins, a richer revenue mix, and a future earnings profile that is anything but vanilla. Result: Fair Value of $38.17 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the United Community Banks story also leans on continued acquisition success and stable commercial real estate credit costs, both of which could surprise investors if conditions turn. Find out about the key risks to this United Community Banks narrative. With mixed signals on United Community Banks, both on risks and rewards, this is a good time to look through the numbers yourself and stress test the narrative using 3 key rewards and 1 important warning sign If United Community Banks has sharpened your focus on opportunities, do not stop here. Use these targeted stock ideas to keep your watchlist fresh and forward looking. Spot potential value ahead of the crowd by reviewing screener containing 20 high quality undiscovered gems that combine strong fundamentals with lower visibility in the market. Strengthen the defensive side of your portfolio by scanning 81 resilient stocks with low risk scores built around companies with more resilient risk profiles. Build a core list of financially sound candidates by checking solid balance sheet and fundamentals stocks screener (48 results) that prioritize robust balance sheets and fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UCB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. United Community Banks stock has returned 42.9% over the past five years, and at a recent price of US$35.35 the Excess Returns intrinsic value estimate suggests the shares trade at a material discount, while market based multiples look closer to fair. A 42.9% total return over five years points to steady value creation for long term United Community Banks shareholders. The planned acquisition of Peach State Bancshares, which now has an election deadline and expected closing date set, can support scale and earnings expectations, while integration and execution around the merger may be a key risk for the valuation case. On Simply Wall St's broader checks, United Community Banks screens as a mixed picture rather than a clear bargain or clear overvaluation, with 4 out of 6 valuation metrics pointing to value. The issue now is whether that apparent discount in the intrinsic value estimate gives investors enough margin of safety at today's share price. Find out why United Community Banks' 16.6% return over the last year is lagging behind its peers. The Excess Returns model looks at how effectively United Community Banks turns its equity base into profits, above the return that shareholders require. In this case, the model uses a Book Value of $31.27 per share and a Stable EPS estimate of $3.41 per share, against a Cost of Equity of $2.42 per share, to arrive at an Excess Return of $0.99 per share and an Average Return on Equity of 10.01%. These inputs support a Stable Book Value of $34.03 per share and feed into an estimated intrinsic value of about $61.73 per share. This is compared with a recent share price near $35.35, implying United Community Banks screens as roughly 42.7% undervalued on this method. The upcoming acquisition of Peach State Bancshares, which now has a set election deadline and expected closing date, helps explain why some investors may still be cautious on the valuation case despite the Excess Returns model indicating a higher value. On this Excess Returns view, United Community Banks stock appears undervalued relative to its current share price. Our Excess Returns analysis suggests United Community Banks is undervalued by 42.7%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for United Community Banks. P/E is often a straightforward way to compare bank stocks, and that applies to United Community Banks as well. On this measure, United Community Banks trades on a P/E of about 11.4x, which is below both the wider banks industry average of roughly 12.3x and the peer group average of about 14.8x. The tailored fair P/E ratio for United Community Banks is estimated at about 11.2x, which is very close to where the stock currently trades. This indicates that the discount to simple industry and peer averages is modest and largely explained by the company-specific balance of earnings quality, scale and risk that informs the fair ratio. Overall, United Community Banks stock appears roughly fairly valued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St's Narratives for United Community Banks pick up where this valuation puzzle leaves off. They spell out what would need to happen to United Community Banks' future growth, margins and earnings for the stock to be worth materially more, or less, than it is today. Rather than focusing on a single multiple or model output, each Narrative lays out the assumptions behind its view of fair value so you can compare those with the company’s results as they are reported, and they sit on Simply Wall St's Community page. Use Simply Wall St's Narratives to share your own number driven view on whether United Community Banks' planned acquisition of Peach State Bancshares delivers on its potential, and track how that thesis holds up as future results are reported. Add your voice to the community and help other investors see the assumptions you think matter most for United Community Banks from here. Do you think there's more to the story for United Community Banks? Head over to our Community to see what others are saying! For United Community Banks, the Excess Returns intrinsic value estimate flags a sizable discount, while the current P/E suggests the stock is priced about right compared with peers. That mixed message, echoed in the broader valuation checks, leaves the acquisition of Peach State Bancshares and its execution as the key swing factor. The core question for investors is whether the current discount reflects an opportunity if the merger is absorbed smoothly, or whether the market is correctly pricing the integration and earnings risks that lie ahead. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UCB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Strong Loan Growth, Sixth Consecutive Quarter of Margin Expansion, and Focus on Core Banking Business Drive Quarterly Results GREENVILLE, S.C., July 21, 2026 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (United) today announced financial results for the quarter ended June 30, 2026, with strong spread income driven by 6.8% annualized loan growth and margin expansion for the sixth consecutive quarter. Chairman and CEO Lynn Harton stated, “Our second quarter results reflect strong loan growth and a strategic emphasis on our core banking business. Our loan portfolio grew $332 million in the second quarter, an annualized rate of 6.8%, reflecting the demographic strength of our geographic footprint and the diligence of our bankers. Excluding the sale of our Navitas equipment finance business, which is expected to close in the third quarter, per a previously announced agreement, we had over $1 billion in loan production and grew loans 6.4%, annualized. We further widened our net interest margin, which is up for the sixth consecutive quarter, while maintaining our focus on disciplined relationship pricing.” Harton continued, “We’ve recently announced the acquisition of Peach State Bank and the sale of Navitas, two strategic actions that I’m confident will be catalysts to the opportunities United has to expand and deepen relationships in the Southeast, one of the best footprints in banking. These transactions strengthen our ability to focus on our core business and position us for greater long-term success.” Second Quarter 2026 Financial Highlights: EPS of $0.95 was up $0.32 on a GAAP basis compared to second quarter of 2025, and EPS of $0.71 was up $0.05, or 8%, on an operating basis compared to second quarter of 2025. Net income of $115.6 million and pre-tax, pre-provision income of $119.4 million, up $36.9 million and $7.0 million, respectively, from a year ago. Total revenue of $279.3 million improved $19.0 million, or 7%, from a year ago. Net interest margin of 3.68% increased by 18 basis points from a year ago and 3 basis points from the first quarter of 2026. The improvement from a year ago results from a lower cost of funds and improving asset mix. Provision for credit losses was a negative $29.8 million, reflecting the $38.5 million release of the allowance on the Navitas loans that were reclassified to held-for-sale. Noninterest expense was up $2.6 million on a GAAP basis and up $7.4 million on an operating basis compared to the first quarter. Efficiency ratio of 57.0% on a GAAP basis, or 56.7% on an operating basis, up slightly from a year ago and first quarter mostly due to the Navitas California license settlement. Loan growth of $332 million, or 6.8% annualized, from the first quarter. Customer deposits were down $295 million from the first quarter, mostly due to seasonal public funds outflows. Return on assets was 1.63% on a GAAP basis and 1.22% on an operating basis. Return on common equity and return on tangible common equity on an operating basis were 12.6% and 13.0%, respectively. Maintained strong capital ratios with preliminary Common Equity Tier 1 of 13.5%. Quarterly common dividend of $0.25 per share declared during the quarter, up 4% year over year. Conference CallUnited will hold a conference call on Tuesday, July 21, 2026 at 9:00 a.m. EDT to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10209320/1040bcbbd98. Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company's website, ucbi.com. (1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation. (2) Net income less preferred stock dividends, divided by average common equity. (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses. (1) Substantially all equipment financing loans were transferred to held for sale in the second quarter of 2026 as a result of the pending sale of Navitas Credit Corp. The remaining $35.9 million to be retained were reclassified to the commercial & industrial line as equipment financing no longer represents a significant held-for-investment category at June 30, 2026. (2) Reduction in the second quarter of 2026 reflects the transfer of substantially all equipment financing loans to held for sale. (1) Substantially all equipment financing loans were transferred to held for sale in the second quarter of 2026 as a result of the pending sale of Navitas Credit Corp. (1) Annualized. (1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.22 million and $983,000, respectively, for the three months ended June 30, 2026 and 2025. The tax rate used to calculate the adjustment was 25%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued.(3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $191 million in 2026 and $240 million in 2025 are included in other assets for purposes of this presentation.(4) Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets. (1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $2.33 million and $1.97 million, respectively, for the six months ended June 30, 2026 and 2025. The tax rate used to calculate the adjustment was 25%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.(2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.(3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $183 million in 2026 and $254 million in 2025 are included in other assets for purposes of this presentation.(4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets. About United Community Banks, Inc.United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top-100 U.S. financial institution committed to building stronger communities and improving the financial health and well-being of its customers. United Community offers a full range of banking, mortgage and wealth management services. As of June 30, 2026, United Community Banks, Inc. had $29.1 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. The company also manages a nationally recognized SBA lending franchise and an equipment finance subsidiary, extending its reach to businesses across the country. United Community is the most awarded bank in the Southeast for Retail Banking Customer Satisfaction by J.D. Power, earning more awards than any other bank in the region, including recognition in 12 of the last 17 years. The company has also been named one of the “Best Banks to Work For” by American Banker for nine consecutive years. In commercial banking, United Community earned multiple 2026 Greenwich Best Bank awards for Small Business Banking. Forbes has consistently named United Community among the World’s Best and America’s Best Banks. Learn more at ucbi.com. Non-GAAP Financial MeasuresThis press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “noninterest income – operating”, “noninterest expense - operating”, “provision for credit losses – operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets - pre-tax, pre-provision - operating,” “return on assets - pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables. Caution About Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to (1) the risk that the financial benefits from the acquisition of Peach State Bancshares, Inc. ( “Peach State”) or the sale of the Navitas equipment finance business (“Navitas”) (each a “Transaction” and collectively, the “Transactions”) may not be realized or take longer than anticipated to be realized, (2) disruption from the Transactions of customer, supplier, employee or other business partner relationships, (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the Transaction agreements, (4) the possibility that the costs, fees, expenses and charges related to the Transactions may be greater than anticipated, (5) reputational risk and the reaction of each of the companies’ customers, suppliers, employees or other business partners to the Transactions, (6) the failure of the closing conditions to the Transactions to be satisfied, or any unexpected delay in closing the Transactions, including due to failure to obtain applicable shareholder or regulatory approvals, (7) the risks relating to the integration of Peach State’s operations into the operations of United, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (8) the risk of potential litigation or regulatory action related to the Transactions, (9) the risks associated with United’s pursuit of future acquisitions, (10) the risk of expansion into new geographic or product markets, (11) the dilution caused by United’s issuance of additional shares of its common stock in the Peach State acquisition, and (12) general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2025, and other documents subsequently filed by United with the U.S. Securities and Exchange Commission (“SEC”). Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United. United qualifies all forward-looking statements by these cautionary statements. For more information:Jefferson HarralsonChief Financial Officer(864) [email protected]

United Community Banks (UCB) came out with quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.25%. A quarter ago, it was expected that this bank holding company would post earnings of $0.71 per share when it actually produced earnings of $0.7, delivering a surprise of -1.41%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. United Community Banks, which belongs to the Zacks Banks - Southeast industry, posted revenues of $279.28 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.84%. This compares to year-ago revenues of $260.24 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. United Community Banks shares have added about 15.4% since the beginning of the year versus the S&P 500's gain of 8.7%. While United Community Banks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for United Community Banks was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $329.67 million in revenues for the coming quarter and $3.02 on $1.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, FVCBankcorp (FVCB), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. FVCBankcorp's revenues are expected to be $19 million, up 14.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Community Banks, Inc. (UCB) : Free Stock Analysis Report Fvcbankcorp, Inc. (FVCB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in United Community Banks, Inc.? Here are five stocks we like better. United Community Banks posted stronger second-quarter results, with operating EPS up 8% to $0.71 and revenue up 7% year over year. Net interest margin also improved to 3.68%, and management said loan growth is accelerating as the company refocuses on its core banking franchise. The pending Navitas sale drove a large reserve release and boosted GAAP earnings, while also setting up some near-term margin pressure. United released a $38.5 million Navitas reserve, and management said selling the portfolio could reduce net interest margin by about 30 basis points on a static basis. Organic loan growth improved to a 6.4% annualized pace, supported by hiring 37 net new producers since September and adding more experienced lenders. Management expects upper-single-digit loan growth next year, while deposits, credit quality, and capital levels remain stable. United Community Banks (NYSE:UCB) reported higher second-quarter operating earnings and revenue, while executives said loan growth is accelerating as the company shifts focus back to its core banking franchise following the pending sale of Navitas. Chairman and Chief Executive Officer Lynn Harton called the quarter “great,” citing progress on strategic goals and stronger organic loan production. Harton said operating earnings per share were $0.71, up 8% from a year earlier, while total revenue increased 7% year over year. The company’s net interest margin rose to 3.68%, up 18 basis points from the prior year and three basis points from the first quarter. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Chief Financial Officer Jefferson Harralson said GAAP earnings were $0.95 per share, helped by a large non-operating item tied to Navitas. United released its Navitas loan loss reserve after reclassifying those loans as held for sale, which added $0.25 to GAAP earnings in the quarter. Harralson said the company recorded a $29.8 million net reserve release in the quarter, including a $38.5 million reserve release related to Navitas. On a bank-only basis, United recorded an $8.7 million provision, more than covering $4.2 million in bank net charge-offs. The allowance for credit losses declined to 1.04% of loans, reflecting what Harralson described as the lower loss content and variability associated with the sale of the Navitas portfolio. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack The Navitas transaction is also expected to affect United’s margin. In response to a question from Piper Sandler analyst Stephen Scouten, Harralson said that on a static basis, selling Navitas and reinvesting the proceeds at 4.25% would reduce the margin by about 30 basis points. However, he said the underlying margin should continue widening as the bank adds loans at an increasing pace and benefits from back-book loan and securities repricing. Harralson said the third quarter margin will depend on the timing of the Navitas sale. He said the fourth quarter, assuming a third-quarter sale, could be down about 20 to 25 basis points, with underlying margin expansion expected to offset that impact over two quarters. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Harton thanked the Navitas team, noting that the unit had been part of United for eight years. “It has been a pleasure working with all of you and you have made a great contribution to our growth and success,” he said. United reported total loan growth of 6.8% annualized in the second quarter. Excluding Navitas, organic loan growth was 6.4% annualized, up from 3.9% annualized in the first quarter and 4.3% for full-year 2025. Harton attributed the improvement to the company’s effort to hire new revenue producers after deciding last year to sell Navitas and refocus on the core franchise. Harralson said United has added 37 net new producers since Sept. 30, 2025, about half of them commercial lenders. That increased the company’s overall sales force by about 17%. Chief Banking Officer Rich Bradshaw said United is targeting experienced bankers, generally with about 20 years of experience and a history of producing portfolios greater than $100 million. He said the company is using no recruiters and is relying on culture in its hiring efforts. Bradshaw said a fully ramped-up experienced banker could contribute about $30 million in funded loans. He said United is looking for ex-Navitas loan growth in the 7% range for the third quarter and expressed confidence in achieving upper-single-digit loan growth next year. He said growth is expected across both commercial and industrial lending and commercial real estate, with production spread across United’s geographies. Bradshaw also said pricing and structure in the market have stabilized after pressure in commercial real estate over the past year. Harralson added that loan yields will decline by about 30 basis points when Navitas is removed, but new loans are being added at higher yields than that lower base. Customer deposits declined by $295 million on an end-of-period basis, with two-thirds of the decline coming from expected seasonal public funds outflows, Harralson said. On an average basis, excluding public funds, customer deposits grew $169 million, or 3.3% annualized. Deposit costs improved by one basis point during the quarter, though Harralson said he expects the cost of deposits to drift slightly higher in the second half due to stronger loan growth and deposit competition. Operating expenses were $159.9 million in the quarter. Harralson said the total included a $4.5 million notable operating expense related to a settlement with the California Department of Financial Protection and Innovation over a Navitas lender license. Excluding that item, expenses rose $2.9 million from the first quarter, including $1.8 million from annual merit increases and about $1 million from new revenue producer hiring. Excluding the license issue, the efficiency ratio improved slightly to around 55%. Harralson said the current expense base is about $154.5 million on a run-rate basis. The pending Peach State acquisition is expected to add about $4 million quarterly, with roughly $2 million in quarterly cost savings next year. Navitas has a $9 million quarterly expense run rate that will go away when that deal closes. Harralson said the fourth-quarter expense base could be roughly $150 million, depending on additional lender hiring. Credit metrics remained stable. Harton said bank-only net charge-offs were nine basis points, while total net charge-offs were 16 basis points. Past dues were 11 basis points, and special mention and substandard accruing loans were 2.5%, which he said was the lowest level in several quarters. Chief Risk Officer Rob Edwards said bank-only net charge-offs, excluding Navitas, have ranged between eight and 13 basis points over the past 10 years and were 12 basis points in each of the past two years. United reported a common equity Tier 1 ratio of 13.5% and tangible common equity just under 10%. Harralson said the sale of Navitas would leave the company with a CET1 ratio of roughly 14.5%. He said the company has not provided capital targets, but noted that returning to the 13% range would imply about $300 million of excess capital, a subject he said management expects to discuss with the board over the next year. Harton said the company continues to expect the Peach State deal to close early in the third quarter and intends to repurchase the shares issued for that acquisition. Harralson said United has $63 million remaining under its repurchase authorization and still expects to buy back the remaining $50 million of the $100 million in total consideration for Peach State. On bank acquisitions, Harton said conversations are active among smaller institutions, particularly banks of about $1.5 billion in assets or less. He said he expects more activity after Peach State is completed. Harralson said United is not looking at large or out-of-market deals, but remains interested in high-quality smaller banks. Harton said pricing varies by transaction, with United targeting a three-year earn-back on an all-stock basis. Harralson also said the company is actively recruiting for his successor as CFO and expects an announcement possibly in the September-to-October timeframe. United Community Banks, Inc (NYSE: UCB) is a bank holding company headquartered in Blairsville, Georgia. It operates primarily through its subsidiary, United Community Bank, providing a broad range of banking and financial services to individual, business and governmental customers. The company's core offerings include deposit accounts, commercial and consumer lending, mortgage origination, treasury and cash management services, and wealth management. In addition to traditional banking products such as checking, savings and money market accounts, United Community Bank specializes in commercial real estate financing, small business administration (SBA) loans, equipment financing and agricultural lending. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "United Community Banks Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

For the quarter ended June 2026, United Community Banks (UCB) reported revenue of $279.28 million, up 7.3% over the same period last year. EPS came in at $0.71, compared to $0.66 in the year-ago quarter. The reported revenue represents a surprise of -0.84% over the Zacks Consensus Estimate of $281.63 million. With the consensus EPS estimate being $0.80, the EPS surprise was -11.25%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how United Community Banks performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin (FTE): 3.7% versus 3.7% estimated by three analysts on average. Efficiency ratio - Operating: 56.7% versus the three-analyst average estimate of 54.8%. Total nonperforming assets: $103.39 million compared to the $100.02 million average estimate based on two analysts. Average Balance - Total interest-earning assets (FTE): $26.4 billion versus $26.21 billion estimated by two analysts on average. Net charge-offs to average loans: 0.2% versus the two-analyst average estimate of 0.2%. Total nonaccrual loans: $92 million compared to the $97.7 million average estimate based on two analysts. Net interest revenue: $240.9 million versus $240.36 million estimated by three analysts on average. Total noninterest income: $38.38 million compared to the $41.28 million average estimate based on three analysts. Net interest revenue (FTE): $242.12 million versus $241.12 million estimated by two analysts on average. View all Key Company Metrics for United Community Banks here>>> Shares of United Community Banks have returned +7.9% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Community Banks, Inc. (UCB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a strategic 'playbook' to refocus on the core franchise by divesting Navitas and reinvesting in revenue-producing talent. Loan growth accelerated to 6.8% annualized, driven by a 17% net expansion in producers since the third quarter of last year. Organic loan growth, excluding Navitas, reached 6.4% annualized, marking the strongest performance in several quarters due to successful hiring initiatives. Net interest margin expanded for the sixth consecutive quarter to 3.68%, supported by stable deposit costs and higher-yielding new loan production. Credit quality remains a core strength, with bank-only net charge-offs at 9 basis points and non-performing assets remaining essentially flat. The pending Peach State acquisition is on track for an early third-quarter close, expected to provide top deposit market share in high-growth Southeast markets. Management expects loan growth to reach the 7% range in the third quarter and move into upper single digits next year as new hires fully ramp up. The sale of Navitas is expected to create a 30-basis point headwind to net interest margin on a static basis, though dynamic reinvestment in 6%+ loans should offset this over two quarters. The expense base is projected to settle at approximately $150 million by the fourth quarter after accounting for Navitas exit savings and Peach State integration. Capital levels are expected to remain high, with a pro forma CET1 ratio of approximately 14.5% post-Navitas sale, providing roughly $300 million in excess capital. The bank intends to use remaining share repurchase authorization to offset the shares issued for the Peach State acquisition. A $38.5 million reserve release was recorded following the reclassification of Navitas loans to held-for-sale, contributing $0.25 to GAAP EPS. A $4.5 million non-recurring expense was incurred to settle a California lender license issue, which management noted was largely non-tax deductible. The allowance for credit losses decreased to 1.04% of loans, reflecting the lower loss variability of the portfolio following the Navitas divestiture. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a temporary 20-25 basis point margin compression in Q3 depending on the timing of the sale. Underlying margin widening from new loan production at higher rates is expected to fully offset the Navitas exit impact by the end of the year. Experienced hires are expected to contribute approximately $30 million in annual funded production once fully integrated. The bank is targeting bankers with 20 years of experience and existing portfolios exceeding $100 million, utilizing no outside recruiters. Priorities include funding accelerated organic loan growth, followed by opportunistic 'small bank' M&A in the sub-$1 billion asset range. Management is evaluating using excess capital for cash-based acquisitions as a more effective alternative to traditional buybacks. Deposit costs are expected to drift slightly higher in the second half of the year due to increased competition and efforts to extend CD maturities. The bank will utilize cash from the Navitas sale and its securities portfolio to fund loan growth, mitigating some liquidity pressure.

Regional banking company United Community Banks (NYSE:UCB) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 6.9% year on year to $279.3 million. Its non-GAAP profit of $0.71 per share was 13.6% below analysts’ consensus estimates. Is now the time to buy United Community Banks? Find out in our full research report. Net Interest Income: $240.9 million vs analyst estimates of $241.2 million (6.8% year-on-year growth, in line) Net Interest Margin: 3.7% vs analyst estimates of 3.7% (in line) Revenue: $279.3 million vs analyst estimates of $281.6 million (6.9% year-on-year growth, 0.8% miss) Efficiency Ratio: 57% vs analyst estimates of 54.7% (227.8 basis point miss) Adjusted EPS: $0.71 vs analyst expectations of $0.82 (13.6% miss) Tangible Book Value per Share: $23.31 vs analyst estimates of $23.17 (11% year-on-year growth, 0.6% beat) Market Capitalization: $4.31 billion Starting as a small community bank in 1950 and expanding through strategic acquisitions across the Southeast, United Community Banks (NYSE:UCB) is a regional bank holding company that provides financial services including loans, deposits, wealth management, and merchant services across the southeastern United States. From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Unfortunately, United Community Banks’s 9.1% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the banking sector and is a poor baseline for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. United Community Banks’s recent performance shows its demand has slowed as its annualized revenue growth of 7.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, United Community Banks’s revenue grew by 6.9% year on year to $279.3 million, missing Wall Street’s estimates. Net interest income made up 86.8% of the company’s total revenue during the last five years, meaning United Community Banks barely relies on non-interest income to drive its overall growth. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights. United Community Banks’s TBVPS grew at a mediocre 4.6% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.5% annually over the last two years from $19.10 to $23.31 per share. Over the next 12 months, Consensus estimates call for United Community Banks’s TBVPS to grow by 7.7% to $25.11, paltry growth rate. It was good to see United Community Banks narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded up 4.6% to $37.70 immediately after reporting. Is United Community Banks an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

This article first appeared on GuruFocus. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EPS increased by 8% over last year, reaching $0.71 per share. Total revenue grew by 7% compared to the previous year. Net interest margin improved to 3.68%, up 18 basis points from last year. Loan growth was strong at 6.8% annualized for the quarter, with organic loan growth at 6.4%. Operating return on assets was 122 basis points, and operating return on tangible common equity was 13%. A $4.5 million notable operating expense related to a settlement with the State of California impacted the quarter. Customer deposits declined by $295 million, primarily due to seasonal public funds outflows. The cost of deposits is expected to drift slightly higher in the second half of the year. The sale of Novitas is expected to reduce the net interest margin by about 30 basis points. There is uncertainty regarding the timing of the Novitas sale, which could impact third-quarter results. Warning! GuruFocus has detected 9 Warning Signs with XSWX:BOSN. Is UCB fairly valued? Test your thesis with our free DCF calculator. Q: With six consecutive quarters of margin expansion, do you anticipate a seventh, or will stabilizing deposit costs affect this? A: (Jefferson Harrelson, CFO) Selling Novitas and reinvesting proceeds at 4.25% could reduce our margin by about 30 basis points. However, underlying margins should widen due to increased loan additions at a 6% pace. The third quarter's margin depends on the Novitas sale timing, but the fourth quarter should see a 20-25 basis point decrease, with underlying widening offsetting this over two quarters. Q: Could CD costs rise, or will liquidity from Novitas help manage this? A: (Jefferson Harrelson, CFO) We've extended CD maturities, which raises costs slightly. Stronger loan growth and competition for deposits may increase deposit costs slightly in the second half, but liquidity from Novitas will help manage this. Q: Are smaller banks more receptive to M&A, and what's your appetite post-Peach State? A: (Lynn Harton, CEO) Conversations with smaller banks, particularly those with assets under $1.5 billion, are active. We expect more activity post-Peach State completion and are interested in high-quality small banks. Q: How much loan production does an experienced banker contribute, and what are your loan growth expectations? A: (Rich Bradshaw, Chief Banking Officer) Experienced bankers contribute around $30 million annually. We expect 7% loan growth in Q3, excluding Novitas, and are confident in achieving upper single-digit growth next year, driven by recent hiring. Q: What is the expected expense base post-Novitas sale and Peach State acquisition? A: (Jefferson Harrelson, CFO) The current expense base is $154.5 million. Peach State adds $4 million quarterly, with $2 million in cost savings expected next year. Novitas' $9 million quarterly expenses will be removed. We anticipate a $150 million base in Q4, with potential increases from lender hires. For the complete transcript of the earnings call, please refer to the full earnings call transcript.