United Community Banks, Inc. Reports Second Quarter Earnings
GREENVILLE, S.C., July 23, 2025 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE:UCB) (United) today announced net income for the second quarter of 2025 of $78.7 million and pre-tax, pre-provision income of $112.3 million. Diluted earnings per share of $0.63 for the quarter represented an increase of $0.09 from the second quarter a year ago and an increase of $0.05 from the first quarter.
On an operating basis, United's diluted earnings per share of $0.66 were up 14% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and lower provision for credit losses, partly offset by a modest increase in noninterest expenses and lower noninterest income.
United's return on assets was 1.11%, or 1.16% on an operating basis. Return on common equity was 8.5% and return on tangible common equity on an operating basis was 12.3%. On a pre-tax, pre-provision basis, operating return on assets was 1.66% for the quarter. At quarter-end, tangible common equity to tangible assets was 9.45%, up 27 basis points from the first quarter.
Chairman and CEO Lynn Harton stated, "This was a great quarter, with strong financial results and continued strategic accomplishments. Tangible book value per share grew by $0.42 and we successfully completed the acquisition of American National Bank on May 1. Excluding loans and deposits received from the American National Bank acquisition, loans grew by $194 million, or 4.2% annualized, while customer deposits, excluding the expected seasonal outflow of public funds, were up $64 million or 1.3% annualized. Second quarter loan growth was funded by cash flow from securities, creating a more favorable earning asset mix. Our net interest margin improved by 14 basis points, contributing to growth in our net interest income of $13.5 million when compared to the first quarter. Operating efficiency and operating leverage also both improved from the first quarter."
Net charge-offs were $8.2 million, or 0.18% of average loans, during the quarter, down 3 basis points from the first quarter. Nonperforming assets were 30 basis points relative to total assets, improved from 33 basis points for the first quarter. Provision for credit losses improved by $3.6 million from the first quarter, covering second quarter net charge-offs and loan growth while holding the allowance for credit losses steady at 1.21% of loans. The second quarter provision for credit losses included $2.5 million to establish an allowance on the acquired American National Bank loans, commonly referred to as the "double dip."
Harton continued, "This time of year is special in our culture, as we pause to celebrate our customers with our annual customer appreciation day. This year's celebration was especially rewarding as we also acknowledged our 75th anniversary as a company. We continue to see great momentum in our business and look forward to many great years ahead."
Second Quarter 2025 Financial Highlights:
EPS of $0.63 was up $0.09 on a GAAP basis compared to second quarter 2024, and EPS of $0.66 was up $0.08, or 14%, on an operating basis; EPS up $0.05 compared to the first quarter on a GAAP basis and up $0.07, or 12%, on an operating basis
Net income of $78.7 million and pre-tax, pre-provision income of $112.3 million, up $7.3 million and $5.7 million, respectively, from the first quarter
Total revenue of $260 million improved $13 million, or 5%, from the first quarter
Net interest margin of 3.50% increased by 14 basis points from the first quarter, reflecting a lower cost of funds and improving asset mix
Noninterest income was down $948 thousand on a linked quarter basis mostly due to a $724 thousand loss on the redemption of $100 million in senior debt
Provision for credit losses was $11.8 million, down $3.6 million from the first quarter; allowance for credit losses coverage held steady at 1.21% of total loans; net charge-offs were $8.2 million, or 18 basis points as a percent of average loans, an improvement of 3 basis points compared to the first quarter
Noninterest expenses were up $6.8 million compared to the first quarter on a GAAP basis and up $3.3 million on an operating basis, of which approximately $1.2 million resulted from the acquisition of ANB
Efficiency ratio of 56.7% on a GAAP basis, or 54.8% on an operating basis, improved both linked quarter and year over year
Strong loan production led to loan growth of $194 million, excluding loans from the ANB acquisition, up 4.2% annualized, from the first quarter
Mortgage closings of $285 million compared to $215 million in second quarter 2024; mortgage rate locks of $359 million compared to $295 million in second quarter 2024
Customer deposits, excluding deposits from the ANB acquisition, were down $169 million from the first quarter, mostly due to seasonal public funds attrition. Excluding public funds and ANB, customer deposits were up $64 million
Return on assets of 1.11%, or 1.16% on an operating basis
Return on common equity and return on tangible common equity on an operating basis improved from the first quarter to 8.5% and 12.3%, respectively
Maintained strong capital ratios with preliminary Common Equity Tier 1 of 13.3%
Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year
Conference Call
United will hold a conference call on Wednesday, July 23 at 9:00 a.m. ET 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/10200766/ff6c2759d0. Those without internet access or unable to pre-register may dial in by calling 1-844-676-1337. Participants are encouraged to dial in 15 minutes prior to the call start time. 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.
UNITED COMMUNITY BANKS, INC.
Selected Financial Information
(in thousands, except per share data)
2025
2024
Second Quarter 2025 - 2024 Change
For the Six Months Ended June 30,
YTD 2025 - 2024 Change
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
2025
2024
INCOME SUMMARY
Interest revenue
$
347,365
$
335,357
$
344,962
$
349,086
$
346,965
$
682,722
$
683,693
Interest expense
121,834
123,336
134,629
139,900
138,265
245,170
275,844
Net interest revenue
225,531
212,021
210,333
209,186
208,700
8
%
437,552
407,849
7
%
Noninterest income
34,708
35,656
40,522
8,091
36,556
(5
)
70,364
76,143
(8
)
Total revenue
260,239
247,677
250,855
217,277
245,256
6
507,916
483,992
5
Provision for credit losses
11,818
15,419
11,389
14,428
12,235
27,237
25,134
Noninterest expenses
147,919
141,099
143,056
143,065
147,044
1
289,018
292,046
(1
)
Income before income tax expense
100,502
91,159
96,410
59,784
85,977
17
191,661
166,812
15
Income tax expense
21,769
19,746
20,606
12,437
19,362
12
41,515
37,566
11
Net income
78,733
71,413
75,804
47,347
66,615
18
150,146
129,246
16
Non-operating items
4,833
1,297
2,203
29,385
6,493
6,130
8,680
Income tax benefit of non-operating items
(1,047
)
(281
)
(471
)
(6,276
)
(1,462
)
(1,328
)
(1,955
)
Net income - operating (1)
$
82,519
$
72,429
$
77,536
$
70,456
$
71,646
15
$
154,948
$
135,971
14
Pre-tax pre-provision income (5)
$
112,320
$
106,578
$
107,799
$
74,212
$
98,212
14
$
218,898
$
191,946
14
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP
$
0.63
$
0.58
$
0.61
$
0.38
$
0.54
17
$
1.21
$
1.05
15
Diluted net income - operating (1)
0.66
0.59
0.63
0.57
0.58
14
1.25
1.10
14
Cash dividends declared
0.24
0.24
0.24
0.24
0.23
4
0.48
0.46
4
Book value
28.89
28.42
27.87
27.68
27.18
6
28.89
27.18
6
Tangible book value (3)
21.00
20.58
20.00
19.66
19.13
10
21.00
19.13
10
Key performance ratios:
Return on common equity - GAAP (2)(4)
8.45
%
7.89
%
8.40
%
5.20
%
7.53
%
8.18
%
7.34
%
Return on common equity - operating (1)(2)(4)
8.87
8.01
8.60
7.82
8.12
8.45
7.73
Return on tangible common equity - operating (1)(2)(3)(4)
12.34
11.21
12.12
11.17
11.68
11.78
11.18
Return on assets - GAAP (4)
1.11
1.02
1.06
0.67
0.97
1.06
0.94
Return on assets - operating (1)(4)
1.16
1.04
1.08
1.01
1.04
1.10
0.99
Return on assets - pre-tax pre-provision, excluding non-operating items(1)(4)(5)
1.66
1.55
1.55
1.50
1.54
1.61
1.47
Net interest margin (fully taxable equivalent) (4)
3.50
3.36
3.26
3.33
3.37
3.43
3.28
Efficiency ratio - GAAP
56.69
56.74
56.05
65.51
59.70
56.71
60.08
Efficiency ratio - operating (1)
54.84
56.22
55.18
57.37
57.06
55.51
58.08
Equity to total assets
12.86
12.56
12.38
12.45
12.35
12.86
12.35
Tangible common equity to tangible assets (3)
9.45
9.18
8.97
8.93
8.78
9.45
8.78
ASSET QUALITY
Nonperforming assets ("NPAs")
$
83,959
$
93,290
$
115,635
$
114,960
$
116,722
(28
)
$
83,959
$
116,722
(28
)
Allowance for credit losses - loans
216,500
211,974
206,998
205,290
213,022
2
216,500
213,022
2
Allowance for credit losses - total
228,045
223,201
217,389
215,517
224,740
1
228,045
224,740
1
Net charge-offs
8,225
9,607
9,517
23,651
11,614
17,832
24,522
Allowance for credit losses - loans to loans
1.14
%
1.15
%
1.14
%
1.14
%
1.17
%
1.14
%
1.17
%
Allowance for credit losses - total to loans
1.21
1.21
1.20
1.20
1.23
1.21
1.23
Net charge-offs to average loans (4)
0.18
0.21
0.21
0.52
0.26
0.20
0.27
NPAs to total assets
0.30
0.33
0.42
0.42
0.43
0.30
0.43
AT PERIOD END ($ in millions)
Loans
$
18,921
$
18,425
$
18,176
$
17,964
$
18,211
4
$
18,921
$
18,211
4
Investment securities
6,382
6,661
6,804
6,425
6,038
6
6,382
6,038
6
Total assets
28,086
27,874
27,720
27,373
27,057
4
28,086
27,057
4
Deposits
23,963
23,762
23,461
23,253
22,982
4
23,963
22,982
4
Shareholders' equity
3,613
3,501
3,432
3,407
3,343
8
3,613
3,343
8
Common shares outstanding (thousands)
121,431
119,514
119,364
119,283
119,175
2
121,431
119,175
2
(1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.
UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
(in thousands, except per share data)
2025
2024
For the Six Months Ended June 30,
SecondQuarter
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
2025
2024
Noninterest income reconciliation
Noninterest income (GAAP)
$
34,708
$
35,656
$
40,522
$
8,091
$
36,556
$
70,364
$
76,143
Loss on sale of manufactured housing loans
—
—
—
27,209
—
—
—
Gain on lease termination
—
—
—
—
—
—
(2,400
)
Noninterest income - operating
$
34,708
$
35,656
$
40,522
$
35,300
$
36,556
$
70,364
$
73,743
Noninterest expense reconciliation
Noninterest expenses (GAAP)
$
147,919
$
141,099
$
143,056
$
143,065
$
147,044
$
289,018
$
292,046
Loss on FinTrust (goodwill impairment)
—
—
—
—
(5,100
)
—
(5,100
)
FDIC special assessment
—
—
—
—
764
—
(1,736
)
Merger-related and other charges
(4,833
)
(1,297
)
(2,203
)
(2,176
)
(2,157
)
(6,130
)
(4,244
)
Noninterest expenses - operating
$
143,086
$
139,802
$
140,853
$
140,889
$
140,551
$
282,888
$
280,966
Net income to operating income reconciliation
Net income (GAAP)
$
78,733
$
71,413
$
75,804
$
47,347
$
66,615
$
150,146
$
129,246
Loss on sale of manufactured housing loans
—
—
—
27,209
—
—
—
Gain on lease termination
—
—
—
—
—
—
(2,400
)
Loss on FinTrust (goodwill impairment)
—
—
—
—
5,100
—
5,100
FDIC special assessment
—
—
—
—
(764
)
—
1,736
Merger-related and other charges
4,833
1,297
2,203
2,176
2,157
6,130
4,244
Income tax benefit of non-operating items
(1,047
)
(281
)
(471
)
(6,276
)
(1,462
)
(1,328
)
(1,955
)
Net income - operating
$
82,519
$
72,429
$
77,536
