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.
PreviousOur second quarter results reflect strong loan growth and a strategic emphasis on our core banking business.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 Call
United 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.
Selected Financial Information
(in thousands, except per share data)
2026 2025 Second Quarter
2026 - 2025
Change
For the Six Months Ended June 30, YTD 2026 - 2025 Change
Second
Quarter First
Quarter Fourth
Quarter Third
Quarter Second
Quarter 2026 2025 INCOME SUMMARY 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 Net interest revenue 240,900 232,764 237,926 233,629 225,531 7% 473,664 437,552 8%Noninterest income 38,380 43,746 40,462 43,219 34,708 11 82,126 70,364 17 Total revenue 279,280 276,510 278,388 276,848 260,239 7 555,790 507,916 9 Provision for credit losses (29,803) 10,853 13,662 7,907 11,818 n/m (18,950) 27,237 n/m Noninterest expense 159,915 157,302 152,048 150,868 147,919 8 317,217 289,018 10 Income before income tax expense 149,168 108,355 112,678 118,073 100,502 48 257,523 191,661 34 Income tax expense 33,530 24,066 26,223 26,579 21,769 54 57,596 41,515 39 Net income 115,638 84,289 86,455 91,494 78,733 47 199,927 150,146 33 Non-operating items (37,582) 508 606 3,468 4,833 (37,074) 6,130 Income tax benefit of non-operating items 8,347 (113) (133) (751) (1,047) 8,234 (1,328) Net income - operating(1)$86,403 $84,684 $86,928 $94,211 $82,519 5 $171,087 $154,948 10 Pre-tax pre-provision income(5)$119,365 $119,208 $126,340 $125,980 $112,320 6 $238,573 $218,898 9 PERFORMANCE MEASURES Per common share: Diluted net income - GAAP$0.95 $0.69 $0.70 $0.70 $0.63 51 $1.65 $1.21 36 Diluted net income - operating(1) 0.71 0.70 0.71 0.75 0.66 8 1.41 1.25 13 Cash dividends declared 0.25 0.25 0.25 0.25 0.24 4 0.50 0.48 4 Book value 31.27 30.54 30.17 29.44 28.89 8 31.27 28.89 8 Tangible book value(3) 23.31 22.56 22.24 21.59 21.00 11 23.31 21.00 11 Key performance ratios: Return on common equity - GAAP(2)(4) 12.56% 9.35% 9.48% 9.20% 8.45% 10.97% 8.18% Return on common equity - operating(1)(2)(4) 9.39 9.39 9.53 9.83 8.87 9.39 8.45 Return on tangible common equity - operating(1)(2)(3)(4) 12.98 13.05 13.31 13.56 12.34 13.02 11.78 Return on assets - GAAP(4) 1.63 1.22 1.21 1.29 1.11 1.43 1.06 Return on assets - operating(1)(4) 1.22 1.22 1.22 1.33 1.16 1.22 1.10 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 Net interest margin (fully taxable equivalent)(4) 3.68 3.65 3.62 3.58 3.50 3.66 3.43 Efficiency ratio - GAAP 57.01 56.66 54.40 54.30 56.69 56.84 56.71 Efficiency ratio - operating(1) 56.69 55.65 54.19 53.05 54.84 56.18 55.51 Equity to total assets 12.89 12.97 12.99 12.78 12.86 12.89 12.86 Tangible common equity to tangible assets(3) 9.94 9.92 9.92 9.71 9.45 9.94 9.45 ASSET QUALITY Nonperforming assets ("NPAs")$103,387 $98,623 $93,498 $97,916 $83,959 23 $103,387 $83,959 23 ACL - funded loans 168,705 208,396 210,429 215,791 216,500 (22) 168,705 216,500 (22)ACL - total 188,329 225,996 225,520 228,276 228,045 (17) 188,329 228,045 (17)Net charge-offs 7,864 10,377 16,418 7,676 8,225 (4) 18,241 17,832 2 ACL - funded loans to loans 0.94% 1.06% 1.09% 1.13% 1.14% 0.94% 1.14% ACL - total to loans 1.04 1.15 1.16 1.19 1.21 1.04 1.21 Net charge-offs to average loans(4) 0.16 0.22 0.34 0.16 0.18 0.19 0.20 NPAs to total assets 0.36 0.35 0.33 0.35 0.30 0.36 0.30 AT PERIOD END ($ in millions) Loans held for investment$18,024 $19,602 $19,384 $19,175 $18,921 (5) $18,024 $18,921 (5)Investment securities 6,377 5,889 5,988 6,163 6,382 — 6,377 6,382 — Total assets 29,051 28,177 28,003 28,143 28,086 3 29,051 28,086 3 Deposits 23,724 24,025 23,798 24,021 23,963 (1) 23,724 23,963 (1)Shareholders’ equity 3,745 3,655 3,639 3,597 3,613 4 3,745 3,613 4 Common shares outstanding (thousands) 119,764 119,684 120,598 121,553 121,431 (1) 119,764 121,431 (1)
(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.
UNITED COMMUNITY BANKS, INC.Loan Portfolio Composition at Period-End
2026 2025 Linked Quarter Change
Year over Year Change
(in millions)Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter LOANS BY CATEGORY Owner occupied commercial RE$4,117 $4,041 $3,950 $3,678 $3,563 $76 $554 Income producing commercial RE 5,018 4,984 5,032 4,534 4,548 34 470 Commercial & industrial(1) 2,859 2,771 2,696 2,593 2,516 88 343 Commercial construction & land 1,143 1,072 998 1,734 1,752 71 (609)Equipment financing(1) — 1,897 1,848 1,808 1,778 (1,897) (1,778)Total commercial 13,137 14,765 14,524 14,347 14,157 (1,628) (1,020)Residential mortgage 3,101 3,122 3,157 3,198 3,210 (21) (109)Home equity 1,403 1,344 1,319 1,252 1,180 59 223 Residential construction & land 195 185 191 178 174 10 21 Consumer 193 187 188 192 191 6 2 Other (5) (1) 5 8 9 (4) (14)Total loans held for investment$18,024 $19,602 $19,384 $19,175 $18,921 $(1,578) $(897) LOANS BY MARKET Georgia$4,662 $4,617 $4,635 $4,584 $4,551 $45 $111 South Carolina 3,130 3,037 2,971 2,926 2,872 93 258 North Carolina 2,706 2,722 2,712 2,676 2,626 (16) 80 Tennessee 1,962 1,895 1,913 1,902 1,881 67 81 Florida 3,283 3,229 3,102 3,040 2,966 54 317 Alabama 1,082 1,049 1,050 1,054 1,016 33 66 Commercial Banking Solutions(2) 1,199 3,053 3,001 2,993 3,009 (1,854) (1,810)Total loans held for investment$18,024 $19,602 $19,384 $19,175 $18,921 $(1,578) $(897)
(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.
UNITED COMMUNITY BANKS, INC. Credit Quality (in thousands) 2026 2025 SecondQuarter First
Quarter Fourth
QuarterNONACCRUAL LOANS Owner occupied RE $20,027 $18,265 $11,165Income producing RE 11,655 11,037 11,488Commercial & industrial 21,147 19,890 18,294Commercial construction & land 916 17 18Equipment financing(1) — 8,024 10,383Total commercial 53,745 57,233 51,348Residential mortgage 30,506 31,906 32,423Home equity 6,435 6,209 5,247Residential construction & land 338 355 1,079Consumer 977 1,009 1,001Total nonaccrual loans held for investment 92,001 96,712 91,098Equipment finance nonaccrual loans held for sale(1) 9,392 — —OREO and repossessed assets 1,994 1,911 2,400Total NPAs $103,387 $98,623 $93,498
(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.
2026 2025 Second Quarter First Quarter Fourth Quarter(in thousands) Net Charge-Offs Net Charge-Offs to Average Loans(1) Net Charge-Offs Net Charge-Offs to Average Loans(1) Net Charge-Offs Net Charge-Offs to Average Loans(1)NET CHARGE-OFFS (RECOVERIES) BY CATEGORY Owner occupied RE $(3,447) (0.34)% $666 0.07% $1,610 0.17%Income producing RE 57 — (85) (0.01) (116) (0.01)Commercial & industrial 6,859 0.97 3,309 0.50 7,557 1.15 Commercial construction & land (22) (0.01) 6 — 1,484 0.35 Equipment financing 3,697 0.78 5,835 1.29 5,092 1.12 Total commercial 7,144 0.19 9,731 0.27 15,627 0.43 Residential mortgage 57 0.01 133 0.02 126 0.02 Home equity (24) (0.01) (54) (0.02) (94) (0.03)Residential construction & land (6) (0.01) 12 0.03 16 0.03 Consumer 693 1.47 555 1.21 743 1.55 Total $7,864 0.16 $10,377 0.22 $16,418 0.34(1) Annualized.
UNITED COMMUNITY BANKS, INC.Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data) June 30,
2026 December 31,
2025ASSETS Cash and due from banks $129,113 $202,586 Interest-bearing deposits in banks 325,984 193,168 Cash and cash equivalents 455,097 395,754 Trading securities 91,377 — Debt securities available-for-sale 4,106,366 3,750,863 Debt securities held-to-maturity (fair value $1,848,900 and $1,918,426, respectively) 2,179,043 2,237,356 Mortgage loans held for sale 53,518 39,381 Equipment financing receivables held for sale 1,909,186 — Loans and leases held for investment 18,024,130 19,384,317 Less allowance for credit losses - loans and leases (168,705) (210,429)Loans and leases, net 17,855,425 19,173,888 Premises and equipment, net 394,343 393,714 Bank-owned life insurance 367,506 364,184 Goodwill and other intangible assets, net 961,881 967,882 Other assets 677,400 679,532 Total assets $29,051,142 $28,002,554 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Noninterest-bearing demand $6,449,517 $6,252,252 NOW and interest-bearing demand 5,677,423 5,969,864 Money market 6,678,206 6,696,530 Savings 1,094,565 1,085,331 Time 3,665,862 3,619,189 Brokered 158,636 175,264 Total deposits 23,724,209 23,798,430 Short-term borrowings 360,000 85,000 Federal Home Loan Bank advances 800,000 — Long-term debt 20,602 120,400 Accrued expense and other liabilities 401,327 360,038 Total liabilities 25,306,138 24,363,868 Shareholders' equity: Common stock, $1 par value; 200,000,000 shares authorized,
119,763,827 and 120,598,266 shares issued and outstanding, respectively 119,764 120,598 Capital surplus 2,724,530 2,754,399 Retained earnings 1,053,438 914,261 Accumulated other comprehensive loss (152,728) (150,572)Total shareholders' equity 3,745,004 3,638,686 Total liabilities and shareholders' equity $29,051,142 $28,002,554
Consolidated Statements of Income (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, except per share data) 2026 2025 2026 2025 Interest revenue: Loans, including fees $295,612 $288,284 $581,689 $562,340 Securities: Taxable 44,647 54,191 89,130 111,363 Tax-exempt 1,671 1,671 3,317 3,349 Other 2,441 3,219 4,196 5,670 Total interest revenue 344,371 347,365 678,332 682,722 Interest expense: Deposits: NOW and interest-bearing demand 28,118 36,956 56,247 74,346 Money market 41,140 49,603 81,849 99,144 Savings 483 1,457 963 2,081 Time 28,362 31,120 57,073 62,499 Deposits 98,103 119,136 196,132 238,070 Short-term borrowings 1,553 83 2,551 1,190 Federal Home Loan Bank advances 3,014 — 3,983 433 Long-term debt 801 2,615 2,002 5,477 Total interest expense 103,471 121,834 204,668 245,170 Net interest revenue 240,900 225,531 473,664 437,552 Noninterest income: Service charges and fees 10,375 10,122 19,920 19,657 Mortgage loan gains and other related fees 6,780 5,370 14,809 11,492 Wealth management fees 4,932 4,400 9,561 8,865 Net gains from sales of other loans 947 1,995 2,840 3,391 Lending and loan servicing fees 4,098 3,690 8,069 7,855 Securities (losses) gains, net (2) 286 131 292 Other 11,250 8,845 26,796 18,812 Total noninterest income 38,380 34,708 82,126 70,364 Total revenue 279,280 260,239 555,790 507,916 Provision for credit losses (29,803) 11,818 (18,950) 27,237 Noninterest expense: Salaries and employee benefits 96,242 86,997 197,491 171,264 Communications and equipment 13,743 13,332 27,845 27,031 Occupancy 11,232 10,935 22,957 21,864 Advertising and public relations 2,708 2,881 5,105 4,762 Postage, printing and supplies 2,744 2,495 5,501 5,056 Professional fees 6,868 5,609 12,444 11,540 Lending and loan servicing expense 3,105 2,330 5,687 4,317 Outside services - electronic banking 3,555 3,570 7,114 6,333 FDIC assessments and other regulatory charges 4,327 4,745 6,596 9,387 Amortization of intangibles 2,938 3,292 6,001 6,578 Merger-related and other charges 895 4,833 1,768 6,130 Other 11,558 6,900 18,708 14,756 Total noninterest expense 159,915 147,919 317,217 289,018 Income before income taxes 149,168 100,502 257,523 191,661 Income tax expense 33,530 21,769 57,596 41,515 Net income 115,638 78,733 199,927 150,146 Preferred stock dividends — 1,573 — 3,146 Earnings allocated to participating securities 758 438 1,309 850 Net income available to common shareholders $114,880 $76,722 $198,618 $146,150 Net income per common share: Basic $0.95 $0.63 $1.65 $1.21 Diluted 0.95 0.63 1.65 1.21 Weighted average common shares outstanding: Basic 120,303 121,377 120,400 120,714 Diluted 120,442 121,432 120,583 120,820
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
2026 2025 (dollars in thousands, fully taxable equivalent (FTE)) Average Balance Interest Average Rate Average Balance Interest Average RateAssets: Interest-earning assets: Loans, net of unearned income (FTE)(1)(2) $19,717,360 $296,278 6.03% $18,664,228 $288,023 6.19%Taxable securities(3) 5,982,611 44,647 2.99 6,492,288 54,191 3.34 Tax-exempt securities (FTE)(1)(3) 340,501 2,226 2.61 354,162 2,236 2.53 Other interest-earning assets 358,914 2,441 2.73 451,953 3,898 3.46 Total interest-earning assets (FTE) 26,399,386 345,592 5.25 25,962,631 348,348 5.38 Noninterest-earning assets: Allowance for credit losses (214,950) (220,059) Cash and due from banks 149,512 203,909 Premises and equipment 395,986 398,241 Other assets(3) 1,681,658 1,637,125 Total assets $28,411,592 $27,981,847 Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW and interest-bearing demand $5,755,001 28,118 1.96 $6,051,489 36,956 2.45 Money market 6,786,045 41,140 2.43 6,645,336 49,603 2.99 Savings 1,094,441 483 0.18 1,195,295 1,457 0.49 Time 3,661,687 27,955 3.06 3,532,848 30,596 3.47 Brokered time deposits 50,655 407 3.22 50,488 524 4.16 Total interest-bearing deposits 17,347,829 98,103 2.27 17,475,456 119,136 2.73 Federal funds purchased and other borrowings 167,718 1,553 3.71 7,412 83 4.49 Federal Home Loan Bank advances 313,791 3,014 3.85 — — — Long-term debt 52,420 801 6.13 237,992 2,615 4.41 Total borrowed funds 533,929 5,368 4.03 245,404 2,698 4.41 Total interest-bearing liabilities 17,881,758 103,471 2.32 17,720,860 121,834 2.76 Noninterest-bearing liabilities: Noninterest-bearing deposits 6,422,393 6,351,540 Other liabilities 415,721 346,643 Total liabilities 24,719,872 24,419,043 Shareholders' equity 3,691,720 3,562,804 Total liabilities and shareholders' equity $28,411,592 $27,981,847 Net interest revenue (FTE) $242,121 $226,514 Net interest-rate spread (FTE) 2.93% 2.62%Net interest margin (FTE)(4) 3.68% 3.50%
(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.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
2026 2025 (dollars in thousands, fully taxable equivalent (FTE)) Average Balance Interest Average Rate Average Balance Interest Average RateAssets: Interest-earning assets: Loans, net of unearned income (FTE)(1)(2) $19,561,444 $582,907 6.01% $18,440,110 $561,953 6.15%Taxable securities(3) 5,954,901 89,130 2.99 6,614,294 111,363 3.37 Tax-exempt securities (FTE)(1)(3) 343,445 4,428 2.58 355,430 4,481 2.52 Other interest-earning assets 333,809 4,196 2.53 426,415 6,899 3.26 Total interest-earning assets (FTE) 26,193,599 680,661 5.23 25,836,249 684,696 5.34 Non-interest-earning assets: Allowance for loan losses (213,914) (215,141) Cash and due from banks 174,659 211,681 Premises and equipment 394,925 397,347 Other assets(3) 1,693,548 1,623,689 Total assets $28,242,817 $27,853,825 Liabilities and Shareholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: NOW and interest-bearing demand $5,803,781 56,247 1.95 $6,092,519 74,346 2.46 Money market 6,806,264 81,849 2.43 6,614,819 99,144 3.02 Savings 1,092,161 963 0.18 1,146,075 2,081 0.37 Time 3,656,390 56,138 3.10 3,489,687 61,427 3.55 Brokered time deposits 55,440 935 3.40 50,468 1,072 4.28 Total interest-bearing deposits 17,414,036 196,132 2.27 17,393,568 238,070 2.76 Federal funds purchased and other borrowings 137,858 2,551 3.73 43,883 1,190 5.47 Federal Home Loan Bank advances 208,619 3,983 3.85 19,343 433 4.51 Long-term debt 86,247 2,002 4.68 246,061 5,477 4.49 Total borrowed funds 432,724 8,536 3.98 309,287 7,100 4.63 Total interest-bearing liabilities 17,846,760 204,668 2.31 17,702,855 245,170 2.79 Noninterest-bearing liabilities: Noninterest-bearing deposits 6,344,315 6,273,313 Other liabilities 376,882 358,227 Total liabilities 24,567,957 24,334,395 Shareholders' equity 3,674,860 3,519,430 Total liabilities and shareholders' equity $28,242,817 $27,853,825 Net interest revenue (FTE) $475,993 $439,526 Net interest-rate spread (FTE) 2.92% 2.55%Net interest margin (FTE)(4) 3.66% 3.43%
(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.
Quarter First
Quarter Fourth
Quarter Third
Quarter Second
Quarter 2026 2025 Noninterest income reconciliation Noninterest income (GAAP) $38,380 $43,746 $40,462 $43,219 $34,708 $82,126 $70,364 Gain on terminated cash flow hedge — (5,184) — — — (5,184) — Noninterest income - operating $38,380 $38,562 $40,462 $43,219 $34,708 $76,942 $70,364 Provision for credit losses reconciliation Provision for credit losses (GAAP) $(29,803) $10,853 $13,662 $7,907 $11,818 $(18,950) $27,237 Release of ACL on equipment finance loans 38,477 — — — — 38,477 — Provision for credit losses - operating $8,674 $10,853 $13,662 $7,907 $11,818 $19,527 $27,237 Noninterest expense reconciliation Noninterest expense (GAAP) $159,915 $157,302 $152,048 $150,868 $147,919 $317,217 $289,018 Payroll transition bonus — (6,704) — — — (6,704) — FDIC special assessment accrual reversal — 1,885 — — — 1,885 — Merger-related and other charges (895) (873) (606) (3,468) (4,833) (1,768) (6,130)Noninterest expense - operating $159,020 $151,610 $151,442 $147,400 $143,086 $310,630 $282,888 Net income to operating income reconciliation Net income (GAAP) $115,638 $84,289 $86,455 $91,494 $78,733 $199,927 $150,146 Gain on terminated cash flow hedge — (5,184) — — — (5,184) — Release of ACL on equipment finance loans (38,477) — — — — (38,477) — Payroll transition bonus — 6,704 — — — 6,704 — FDIC special assessment accrual reversal — (1,885) — — — (1,885) — Merger-related and other charges 895 873 606 3,468 4,833 1,768 6,130 Income tax benefit of non-operating items 8,347 (113) (133) (751) (1,047) 8,234 (1,328)Net income - operating $86,403 $84,684 $86,928 $94,211 $82,519 $171,087 $154,948 Net income to pre-tax pre-provision income reconciliation Net income (GAAP) $115,638 $84,289 $86,455 $91,494 $78,733 $199,927 $150,146 Income tax expense 33,530 24,066 26,223 26,579 21,769 57,596 41,515 Provision for credit losses (29,803) 10,853 13,662 7,907 11,818 (18,950) 27,237 Pre-tax pre-provision income $119,365 $119,208 $126,340 $125,980 $112,320 $238,573 $218,898 Diluted income per common share reconciliation Diluted income per common share (GAAP) $0.95 $0.69 $0.70 $0.70 $0.63 $1.65 $1.21 Gain on terminated cash flow hedge — (0.03) — — — (0.03) — Release of ACL on equipment finance loans (0.25) — — — — (0.25) — Payroll transition bonus — 0.04 — — — 0.04 — FDIC special assessment accrual reversal — (0.01) — — — (0.01) — Merger-related and other charges 0.01 0.01 0.01 0.02 0.03 0.01 0.04 Deemed dividend on preferred stock redemption — — — 0.03 — — — Diluted income per common share - operating $0.71 $0.70 $0.71 $0.75 $0.66 $1.41 $1.25 Book value per common share reconciliation Book value per common share (GAAP) $31.27 $30.54 $30.17 $29.44 $28.89 $31.27 $28.89 Effect of goodwill and other intangibles (7.96) (7.98) (7.93) (7.85) (7.89) (7.96) (7.89)Tangible book value per common share $23.31 $22.56 $22.24 $21.59 $21.00 $23.31 $21.00 Return on tangible common equity reconciliation Return on common equity (GAAP) 12.56% 9.35% 9.48% 9.20% 8.45% 10.97% 8.18%Gain on terminated cash flow hedge — (0.45) — — — (0.22) — Release of ACL on equipment finance loans (3.25) — — — — (1.64) — Payroll transition bonus — 0.58 — — — 0.29 — FDIC special assessment accrual reversal — (0.16) — — — (0.08) — Merger-related and other charges 0.08 0.07 0.05 0.29 0.42 0.07 0.27 Deemed dividend on preferred stock redemption — — — 0.34 — — — Return on common equity - operating 9.39 9.39 9.53 9.83 8.87 9.39 8.45 Effect of goodwill and other intangibles 3.59 3.66 3.78 3.73 3.47 3.63 3.33 Return on tangible common equity - operating 12.98% 13.05% 13.31% 13.56% 12.34% 13.02% 11.78% Return on assets reconciliation Return on assets (GAAP) 1.63% 1.22% 1.21% 1.29% 1.11% 1.43% 1.06%Gain on terminated cash flow hedge — (0.06) — — — (0.03) — Release of ACL on equipment finance loans (0.42) — — — — (0.21) — Payroll transition bonus — 0.07 — — — 0.03 — FDIC special assessment accrual reversal — (0.02) — — — (0.01) — Merger-related and other charges 0.01 0.01 0.01 0.04 0.05 0.01 0.04 Return on assets - operating 1.22% 1.22% 1.22% 1.33% 1.16% 1.22% 1.10% Return on assets to return on assets- pre-tax pre-provision reconciliation Return on assets (GAAP) 1.63% 1.22% 1.21% 1.29% 1.11% 1.43% 1.06%Income tax expense 0.47 0.35 0.37 0.38 0.31 0.41 0.30 Provision for credit losses (0.42) 0.16 0.19 0.11 0.17 (0.14) 0.20 Gain on terminated cash flow hedge — (0.08) — — — (0.04) — Payroll transition bonus — 0.10 — — — 0.05 — FDIC special assessment accrual reversal — (0.03) — — — (0.01) — Merger-related and other charges 0.02 0.01 0.01 0.05 0.07 0.01 0.05 Return on assets - pre-tax pre-provision - operating 1.70% 1.73% 1.78% 1.83% 1.66% 1.71% 1.61% Efficiency ratio reconciliation Efficiency ratio (GAAP) 57.01% 56.66% 54.40% 54.30% 56.69% 56.84% 56.71%Gain on terminated cash flow hedge — 1.03 — — — 0.52 — Payroll transition bonus — (2.41) — — — (1.20) — FDIC special assessment accrual reversal — 0.68 — — — 0.34 — Merger-related and other charges (0.32) (0.31) (0.21) (1.25) (1.85) (0.32) (1.20)Efficiency ratio - operating 56.69% 55.65% 54.19% 53.05% 54.84% 56.18% 55.51% Tangible common equity to tangible assets reconciliation Equity to total assets (GAAP) 12.89% 12.97% 12.99% 12.78% 12.86% 12.89% 12.86%Effect of goodwill and other intangibles (2.95) (3.05) (3.07) (3.07) (3.10) (2.95) (3.10)Effect of preferred equity — — — — (0.31) — (0.31)Tangible common equity to tangible assets 9.94% 9.92% 9.92% 9.71% 9.45% 9.94% 9.45%
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 Measures
This 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 Statements
This 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 Harralson
Chief Financial Officer
(864) 240-6208
[email protected]