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

United Community Banks (NYSE:UCB) posted its quarterly earnings data on Tuesday. The company reported $0.77 earnings per share for the quarter, meeting the consensus estimate of $0.77, FiscalAI reports. The business had revenue of $291.90 million for the quarter. United Community Banks had a return on equity of 9.66% and a net margin of 9.06%.

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 Price Performance

Shares of United Community Banks stock opened at $35.82 on Thursday. The stock has a market cap of $4.32 billion, a P/E ratio of 30.36 and a beta of 0.88. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 0.78. The stock’s fifty day moving average is $34.73 and its 200 day moving average is $34.36. United Community Banks has a one year low of $28.65 and a one year high of $37.18.

United Community Banks Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, October 5th. Shareholders of record on Tuesday, September 15th were given a $0.26 dividend. The ex-dividend date was Tuesday, September 15th. This is a boost from United Community Banks’s previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a yield of 2.9%. United Community Banks’s payout ratio is 88.14%.

Insider Activity

In other news, EVP Jefferson L. Harralson sold 25,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $35.41, for a total transaction of $885,250.00. Following the sale, the executive vice president directly owned 37,433 shares of the company’s stock, valued at $1,325,502.53. This represents a 40.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Richard Bradshaw sold 1,424 shares of the firm’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $35.09, for a total transaction of $49,968.16. Following the completion of the transaction, the executive vice president directly owned 83,228 shares of the company’s stock, valued at approximately $2,920,470.52. This trade represents a 1.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.45% of the company’s stock.

Institutional Investors Weigh In On United Community Banks

Several large investors have recently bought and sold shares of UCB. Root Financial Partners LLC bought a new position in United Community Banks during the third quarter valued at $31,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of United Community Banks in the 4th quarter worth $29,000. Integrated Wealth Concepts LLC bought a new stake in shares of United Community Banks in the 2nd quarter worth about $37,000. Public Employees Retirement System of Ohio bought a new stake in shares of United Community Banks in the 2nd quarter worth about $54,000. Finally, Versant Capital Management Inc increased its holdings in shares of United Community Banks by 13.2% in the 2nd quarter. Versant Capital Management Inc now owns 2,894 shares of the company’s stock worth $102,000 after buying an additional 338 shares during the last quarter. Institutional investors own 82.29% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Keefe, Bruyette & Woods raised their target price on shares of United Community Banks from $40.00 to $41.00 and gave the company an “outperform” rating in a research note on Wednesday, September 16th. Stephens lifted their price target on United Community Banks from $41.00 to $42.00 and gave the stock an “overweight” rating in a research report on Wednesday. Wall Street Zen raised United Community Banks from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th. Weiss Ratings reiterated a “buy (b)” rating on shares of United Community Banks in a research note on Friday, September 25th. Finally, Piper Sandler increased their price objective on shares of United Community Banks from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, United Community Banks has a consensus rating of “Moderate Buy” and a consensus target price of $40.00.

About United Community Banks

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.