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.
GAAP EPS included a $38.5 million pre-tax provision release resulting from the reclassification of Navitas equipment finance loans to held-for-sale in the second quarter, pursuant to a previously announced agreement, which is expected to close in the third quarter of 2026.
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.
Excluding the release, the provision was $8.7 million, down $3.1 million from a year ago and $2.2 million from the first quarter.
Allowance for credit losses coverage was 1.04% of total loans; net charge-offs were $7.9 million, or 0.16% of average loans, annualized. Second quarter net charge-offs include $3.7 million on the Navitas portfolio.
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.
Included in noninterest expense is a settlement payment to the State of California to obtain a lender’s license for Navitas. Navitas previously held a California lender’s license; however, after being acquired by United, Navitas believed that, as a bank subsidiary, they were no longer required to hold a license. The matter has been closed and license obtained. United incurred a $4.5 million expense in the second quarter, representing a payment to the California Department of Financial Protection and Innovation (DFPI) and our associated legal fees.
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.
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UNITED COMMUNITY BANKS, INC. |
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Selected Financial Information |
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(in thousands, except per share data) |
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2026 |
2025 |
Second Quarter |
For the Six Months Ended June 30, |
YTD 2026 – 2025 Change |
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Second |
First |
Fourth |
Third |
Second |
2026 |
2025 |
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INCOME SUMMARY |
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|
Interest revenue |
$ |
344,371 |
$ |
333,961 |
$ |
346,367 |
$ |
353,850 |
$ |
347,365 |
$ |
678,332 |
$ |
682,722 |
|||||||||||||||||||
|
Interest expense |
103,471 |
101,197 |
108,441 |
120,221 |
121,834 |
204,668 |
245,170 |
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Net interest revenue |
240,900 |
232,764 |
237,926 |
233,629 |
225,531 |
7 |
% |
473,664 |
437,552 |
8 |
% |
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Noninterest income |
38,380 |
43,746 |
40,462 |
43,219 |
34,708 |
11 |
82,126 |
70,364 |
17 |
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Total revenue |
279,280 |
276,510 |
278,388 |
276,848 |
260,239 |
7 |
555,790 |
507,916 |
9 |
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Provision for credit losses |
(29,803 |
) |
10,853 |
13,662 |
7,907 |
11,818 |
n/m |
(18,950 |
) |
27,237 |
n/m |
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Noninterest expense |
159,915 |
157,302 |
152,048 |
150,868 |
147,919 |
8 |
317,217 |
289,018 |
10 |
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Income before income tax expense |
149,168 |
108,355 |
112,678 |
118,073 |
100,502 |
48 |
257,523 |
191,661 |
34 |
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Income tax expense |
33,530 |
24,066 |
26,223 |
26,579 |
21,769 |
54 |
57,596 |
41,515 |
39 |
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Net income |
115,638 |
84,289 |
86,455 |
91,494 |
78,733 |
47 |
199,927 |
150,146 |
33 |
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Non-operating items |
(37,582 |
) |
508 |
606 |
3,468 |
4,833 |
(37,074 |
) |
6,130 |
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Income tax benefit of non-operating items |
8,347 |
(113 |
) |
(133 |
) |
(751 |
) |
(1,047 |
) |
8,234 |
(1,328 |
) |
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Net income – operating(1) |
$ |
86,403 |
$ |
84,684 |
$ |
86,928 |
$ |
94,211 |
$ |
82,519 |
5 |
$ |
171,087 |
$ |
154,948 |
10 |
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Pre-tax pre-provision income(5) |
$ |
119,365 |
$ |
119,208 |
$ |
126,340 |
$ |
125,980 |
$ |
112,320 |
6 |
$ |
238,573 |
$ |
218,898 |
9 |
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PERFORMANCE MEASURES |
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Per common share: |
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Diluted net income – GAAP |
$ |
0.95 |
$ |
0.69 |
$ |
0.70 |
$ |
0.70 |
$ |
0.63 |
51 |
$ |
1.65 |
$ |
1.21 |
36 |
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Diluted net income – operating(1) |
0.71 |
0.70 |
0.71 |
0.75 |
0.66 |
8 |
1.41 |
1.25 |
13 |
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Cash dividends declared |
0.25 |
0.25 |
0.25 |
0.25 |
0.24 |
4 |
0.50 |
0.48 |
4 |
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Book value |
31.27 |
30.54 |
30.17 |
29.44 |
28.89 |
8 |
31.27 |
28.89 |
8 |
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Tangible book value(3) |
23.31 |
22.56 |
22.24 |
21.59 |
21.00 |
11 |
23.31 |
21.00 |
11 |
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Key performance ratios: |
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Return on common equity – GAAP(2)(4) |
12.56 |
% |
9.35 |
% |
9.48 |
% |
9.20 |
% |
8.45 |
% |
10.97 |
% |
8.18 |
% |
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Return on common equity – operating(1)(2)(4) |
9.39 |
9.39 |
9.53 |
9.83 |
8.87 |
9.39 |
8.45 |
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Return on tangible common equity – operating(1)(2)(3)(4) |
12.98 |
13.05 |
13.31 |
13.56 |
12.34 |
13.02 |
11.78 |
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Return on assets – GAAP(4) |
1.63 |
1.22 |
1.21 |
1.29 |
1.11 |
1.43 |
1.06 |
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Return on assets – operating(1)(4) |
1.22 |
1.22 |
1.22 |
1.33 |
1.16 |
1.22 |
1.10 |
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Return on assets – pre-tax pre-provision, excluding non-operating items(1)(4)(5) |
1.70 |
1.73 |
1.78 |
1.83 |
1.66 |
1.71 |
1.61 |
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Net interest margin (fully taxable equivalent)(4) |
3.68 |
3.65 |
3.62 |
3.58 |
3.50 |
3.66 |
3.43 |
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Efficiency ratio – GAAP |
57.01 |
56.66 |
54.40 |
54.30 |
56.69 |
56.84 |
56.71 |
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Efficiency ratio – operating(1) |
56.69 |
55.65 |
54.19 |
53.05 |
54.84 |
56.18 |
55.51 |
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Equity to total assets |
12.89 |
12.97 |
12.99 |
12.78 |
12.86 |
12.89 |
12.86 |
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Tangible common equity to tangible assets(3) |
9.94 |
9.92 |
9.92 |
9.71 |
9.45 |
9.94 |
9.45 |
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ASSET QUALITY |
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Nonperforming assets (“NPAs”) |
$ |
103,387 |
$ |
98,623 |
$ |
93,498 |
$ |
97,916 |
$ |
83,959 |
23 |
$ |
103,387 |
$ |
83,959 |
23 |
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ACL – funded loans |
168,705 |
208,396 |
210,429 |
215,791 |
216,500 |
(22 |
) |
168,705 |
216,500 |
(22 |
) |
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ACL – total |
188,329 |
225,996 |
225,520 |
228,276 |
228,045 |
(17 |
) |
188,329 |
228,045 |
(17 |
) |
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Net charge-offs |
7,864 |
10,377 |
16,418 |
7,676 |
8,225 |
(4 |
) |
18,241 |
17,832 |
2 |
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ACL – funded loans to loans |
0.94 |
% |
1.06 |
% |
1.09 |
% |
1.13 |
% |
1.14 |
% |
0.94 |
% |
1.14 |
% |
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ACL – total to loans |
1.04 |
1.15 |
1.16 |
1.19 |
1.21 |
1.04 |
1.21 |
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Net charge-offs to average loans(4) |
0.16 |
0.22 |
0.34 |
0.16 |
0.18 |
0.19 |
0.20 |
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NPAs to total assets |
0.36 |
0.35 |
0.33 |
0.35 |
0.30 |
0.36 |
0.30 |
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AT PERIOD END ($ in millions) |
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Loans held for investment |
$ |
18,024 |
$ |
19,602 |
$ |
19,384 |
$ |
19,175 |
$ |
18,921 |
(5 |
) |
$ |
18,024 |
$ |
18,921 |
(5 |
) |
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Investment securities |
6,377 |
5,889 |
5,988 |
6,163 |
6,382 |
— |
6,377 |
6,382 |
— |
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Total assets |
29,051 |
28,177 |
28,003 |
28,143 |
28,086 |
3 |
29,051 |
28,086 |
3 |
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Deposits |
23,724 |
24,025 |
23,798 |
24,021 |
23,963 |
(1 |
) |
23,724 |
23,963 |
(1 |
) |
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Shareholders’ equity |
3,745 |
3,655 |
3,639 |
3,597 |
3,613 |
4 |
3,745 |
3,613 |
4 |
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Common shares outstanding (thousands) |
119,764 |
119,684 |
120,598 |
121,553 |
121,431 |
(1 |
) |
119,764 |
121,431 |
(1 |
) |
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UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
Second Quarter2026 – 2025Change
For the Six Months Ended June 30,
Provision for credit losses
Income before income tax expense
Income tax benefit of non-operating items
Pre-tax pre-provision income(5)
Diluted net income – operating(1)
Return on common equity – GAAP(2)(4)
Return on common equity – operating(1)(2)(4)
Return on tangible common equity – operating(1)(2)(3)(4)
Return on assets – GAAP(4)
Return on assets – operating(1)(4)
Return on assets – pre-tax pre-provision, excluding non-operating items(1)(4)(5)
Net interest margin (fully taxable equivalent)(4)
Efficiency ratio – operating(1)
Tangible common equity to tangible assets(3)
Nonperforming assets (“NPAs”)
ACL – funded loans to loans
Net charge-offs to average loans(4)
AT PERIOD END ($ in millions)
Common shares outstanding (thousands)
(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.
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UNITED COMMUNITY BANKS, INC. |
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Loan Portfolio Composition at Period-End |
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2026 |
2025 |
Linked Quarter Change |
Year over Year Change |
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(in millions) |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
Second Quarter |
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LOANS BY CATEGORY |
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Owner occupied commercial RE |
$ |
4,117 |
$ |
4,041 |
$ |
3,950 |
$ |
3,678 |
$ |
3,563 |
$ |
76 |
$ |
554 |
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Income producing commercial RE |
5,018 |
4,984 |
5,032 |
4,534 |
4,548 |
34 |
470 |
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Commercial & industrial(1) |
2,859 |
2,771 |
2,696 |
2,593 |
2,516 |
88 |
343 |
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Commercial construction & land |
1,143 |
1,072 |
998 |
1,734 |
1,752 |
71 |
(609 |
) |
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Equipment financing(1) |
— |
1,897 |
1,848 |
1,808 |
1,778 |
(1,897 |
) |
(1,778 |
) |
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Total commercial |
13,137 |
14,765 |
14,524 |
14,347 |
14,157 |
(1,628 |
) |
(1,020 |
) |
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Residential mortgage |
3,101 |
3,122 |
3,157 |
3,198 |
3,210 |
(21 |
) |
(109 |
) |
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Home equity |
1,403 |
1,344 |
1,319 |
1,252 |
1,180 |
59 |
223 |
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Residential construction & land |
195 |
185 |
191 |
178 |
174 |
10 |
21 |
|||||||||||||||||
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Consumer |
193 |
187 |
188 |
192 |
191 |
6 |
2 |
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Other |
(5 |
) |
(1 |
) |
5 |
8 |
9 |
(4 |
) |
(14 |
) |
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Total loans held for investment |
$ |
18,024 |
$ |
19,602 |
$ |
19,384 |
$ |
19,175 |
$ |
18,921 |
$ |
(1,578 |
) |
$ |
(897 |
) |
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… |
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UNITED COMMUNITY BANKS, INC.
Loan Portfolio Composition at Period-End
Owner occupied commercial RE
Income producing commercial RE
Commercial & industrial(1)
Commercial construction & land
Residential construction & land
Total loans held for investment