United Community Banks (NYSE:UCB) Issues Earnings Results, Meets Expectations

United Community Banks (NYSE:UCB) issued its earnings results on Tuesday. The company reported $0.77 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.77, FiscalAI reports. The firm had revenue of $291.90 million during the quarter. United Community Banks had a net margin of 24.43% and a return on equity of 9.61%.

Here are the key takeaways from United Community Banks’ conference call:

• Operating earnings per share increased to $0.77 from $0.71 in the second quarter, supported by 10% annualized core loan growth, 8% deposit growth, and a stable 3.68% net interest margin.
• Strategic actions, including the Navitas exit and securities portfolio repositioning, reduced credit and interest-rate risk while increasing asset sensitivity. Management expects fourth-quarter EPS of $0.80–$0.83 and net interest margin in the mid-3.70% range.
• Commercial lending momentum remained strong, with more than $1 billion of production for the second consecutive quarter and recent hires contributing roughly 38%–40% of third-quarter production. Management is targeting sustained high-single-digit organic growth.
• Credit quality remained strong, with net charge-offs improving to 9 basis points, declining nonperforming assets and past dues, and criticized loans viewed as within a normal historical range.
• Capital and liquidity remain robust, with a 77% loan-to-deposit ratio, 13% CET1 capital, and a 9% tangible common equity ratio. The board added $100 million to the share-repurchase authorization, and management indicated it expects to remain active at current share prices.

United Community Banks Stock Up 4.9%

Shares of United Community Banks stock opened at $35.45 on Wednesday. United Community Banks has a 12-month low of $28.65 and a 12-month high of $37.18. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.22. The stock has a 50 day moving average price of $34.74 and a two-hundred day moving average price of $34.34. The stock has a market capitalization of $4.27 billion, a P/E ratio of 11.77 and a beta of 0.88.

United Community Banks Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, October 5th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This is an increase from United Community Banks’s previous quarterly dividend of $0.25. This represents a $1.04 dividend on an annualized basis and a yield of 2.9%. United Community Banks’s dividend payout ratio (DPR) is currently 34.21%.

Analysts Set New Price Targets

A number of brokerages have recently commented on UCB. Piper Sandler increased their price objective on United Community Banks from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Wednesday, September 9th. TD Cowen upgraded United Community Banks to a “strong-buy” rating in a report on Thursday, July 16th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of United Community Banks in a research report on Friday, September 25th. Wall Street Zen raised United Community Banks from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th. Finally, DA Davidson upped their target price on United Community Banks from $40.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, United Community Banks has an average rating of “Moderate Buy” and a consensus target price of $39.60.

Key Headlines Impacting United Community Banks

Here are the key news stories impacting United Community Banks this week:

• Positive Sentiment: Adjusted operating EPS was $0.77, matching Wall Street estimates and increasing from $0.75 a year earlier. Revenue was reported at approximately $291.9 million on an operating basis. United Community Banks Q3 Earnings Match Estimates
• Positive Sentiment: Core loans grew $444 million, or 9.8% annualized, while core customer deposits rose $473 million, or 8.0% annualized, excluding acquisition-related effects. Net interest margin held at 3.68%, up 10 basis points from the prior year, indicating improving underlying banking performance. United Community Banks Reports Third Quarter Earnings
• Positive Sentiment: Capital-return measures supported sentiment: UCB repurchased 1.395 million shares for $50 million and raised its quarterly common dividend to $0.26 per share. The completed Peach State Bank acquisition also added $520 million of loans and $678 million of deposits.
• Neutral Sentiment: Raymond James maintained its Hold rating, suggesting the latest results were viewed as broadly consistent with expectations rather than a catalyst for a major change in its outlook. Raymond James Maintains Hold Rating
• Negative Sentiment: UCB reported a $139.7 million GAAP net loss, or $1.16 per diluted share, with GAAP revenue of negative $12.0 million. The results were distorted by securities portfolio repositioning and the sale of its Navitas equipment-finance business, which may concern investors despite the stronger operating figures. United Community Banks Reports Third-Quarter Net Loss

Insider Buying and Selling

In other news, EVP Jefferson Harralson sold 25,000 shares of the business’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $35.41, for a total value of $885,250.00. Following the completion of the sale, the executive vice president directly owned 37,433 shares in the company, valued at approximately $1,325,502.53. The trade was a 40.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Richard Bradshaw sold 1,424 shares of the business’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $35.09, for a total transaction of $49,968.16. Following the completion of the sale, the executive vice president owned 83,228 shares of the company’s stock, valued at $2,920,470.52. The trade was a 1.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP raised its position in shares of United Community Banks by 2.9% during the first quarter. Dimensional Fund Advisors LP now owns 6,520,132 shares of the company’s stock valued at $205,315,000 after buying an additional 182,397 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in United Community Banks during the second quarter worth about $55,195,000. Vaughan Nelson Investment Management L.P. bought a new position in United Community Banks during the first quarter valued at about $34,183,000. Principal Financial Group Inc. lifted its position in shares of United Community Banks by 32.3% in the 1st quarter. Principal Financial Group Inc. now owns 766,598 shares of the company’s stock worth $24,140,000 after acquiring an additional 187,210 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of United Community Banks by 27.6% in the 1st quarter. Bank of America Corp DE now owns 747,576 shares of the company’s stock worth $23,541,000 after acquiring an additional 161,848 shares during the period. Institutional investors own 82.29% of the company’s stock.

United Community Banks Company Profile

United Community Banks, Inc is a bank holding company headquartered in Blairsville, Georgia. Through its principal subsidiary, United Community Bank, the company provides banking and financial services to consumers, businesses and communities primarily across the Southeastern United States.

United Community Bank offers deposit accounts, consumer and commercial lending, residential mortgages, credit cards, online and mobile banking, treasury management and other financial services. Its lending activities include commercial real estate, business, construction, residential and consumer loans.