Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth in Q4 2025, with operating earnings per share increasing by 13% to $0.71 [4] - For the full year, operating earnings per share grew by 18%, from $2.30 to $2.71, and revenue topped $1 billion with a 12% year-over-year growth [4][5] - Return on assets improved to 1.22%, and return on tangible common equity reached 13.3% for the year [4] Business Line Data and Key Metrics Changes - Retail and small business lending efforts surpassed $1 billion in annual production for the first time, alongside Novitas equipment finance team achieving the same milestone [5] - The loan portfolio grew at an annualized pace of 4.4%, primarily driven by C&I and HELOC categories [10] - Non-interest income was reported at $40.5 million, down from the previous quarter, with growth in wealth management and treasury management offset by a seasonal decline in mortgage [12] Market Data and Key Metrics Changes - The company experienced a positive seasonality in public funds, with an increase of $293 million in deposits [9] - The cost of deposits improved by 21 basis points to 1.76%, while cumulative total deposit beta increased from 37% to 40% [9] - The loan-to-deposit ratio increased to 82%, reflecting a trend towards higher loan growth relative to deposits [10] Company Strategy and Development Direction - The company is focused on improving the durability of earnings through reduced securities duration and investments in talent and systems for interest rate risk management [7] - Expansion efforts included the successful conversion of American National Bank and Fort Lauderdale to the company's systems, along with new office openings in North Carolina and Florida [8] - The company plans to be more assertive in share buybacks, given strong capital build and credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2026, citing a strong economy in their markets [15] - The competitive landscape remains robust, with a focus on client service and employee culture to attract talent [36] - Management does not foresee significant impacts from tariffs on credit quality, indicating stability in asset quality [68] Other Important Information - The company was recognized for retail client satisfaction and as one of the top banks to work for, highlighting its commitment to culture and community engagement [6] - The efficiency ratio improved by 264 basis points, with expectations for further improvements in 2026 [11][70] Q&A Session Summary Question: Balance sheet growth expectations for 2026 - Management expects balance sheet growth to depend on deposit growth, modeling it a couple hundred basis points below loan growth [19] Question: Anticipated loan growth and asset class focus - Management highlighted C&I and HELOC as focus areas, with Florida leading production due to recent acquisitions [20] Question: Future share repurchase strategy - Management intends to be more assertive with buybacks in 2026, given strong capital and credit quality [24] Question: Outlook on efficiency ratio and expense growth - Management is budgeting for operating leverage improvement in 2026, targeting a 3% to 3.5% growth rate in expenses [39] Question: Competitive landscape and hiring opportunities - Management noted increased competition but emphasized a focus on culture and client service to attract talent [36] Question: M&A opportunities and strategy - Management is focused on organic growth and sees limited M&A opportunities, preferring quality targets [41][77]

Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth in Q4 2025, with operating earnings per share increasing by 13% to $0.71 [4] - The return on assets for Q4 was 1.22%, and the return on tangible common equity was 13.3% [4] - For the full year, operating earnings per share grew by 18%, from $2.30 to $2.71, with total revenue exceeding $1 billion [4][5] - The efficiency ratio improved by 264 basis points, and credit losses declined, contributing to overall performance improvements [4] Business Line Data and Key Metrics Changes - Retail and small business lending efforts surpassed $1 billion in annual production for the first time, alongside Novitas equipment finance [5] - The loan portfolio grew at an annualized pace of 4.4%, primarily driven by C&I and HELOC categories [10] - Non-interest income was reported at $40.5 million, down from the previous quarter, with growth in wealth management and treasury management offset by a seasonal decline in mortgage [12] Market Data and Key Metrics Changes - The company experienced a positive seasonality in public funds, with an increase of $293 million in deposits [9] - The cost of deposits improved by 21 basis points to 1.76%, while the loan-to-deposit ratio increased to 82% [9][10] - Deposits grew by 1% for the year, with a focus on customer and account growth [10] Company Strategy and Development Direction - The company aims to improve earnings durability by reducing securities duration and investing in talent and systems for interest rate risk management [7] - Expansion efforts included the successful conversion of American National Bank and Fort Lauderdale to the company's systems, along with new office openings in North Carolina [8] - The company plans to be more assertive in share buybacks due to strong capital build and favorable credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2026, citing a strong economy in their markets [15] - The competitive landscape remains challenging, but the company focuses on client service and employee culture to attract talent [39][40] - Management does not foresee significant impacts from tariffs on credit quality, indicating stability in asset quality [70] Other Important Information - The company was recognized for retail client satisfaction and as one of the top banks to work for, reflecting its commitment to culture and community engagement [6][7] - The company redeemed preferred stock during the year, enhancing returns to common shareholders [5] Q&A Session Summary Question: Balance sheet growth expectations for 2026 - Management expects balance sheet growth to depend on deposit growth, modeling a couple hundred basis points below loan growth [19] Question: Anticipated asset class and geographic loan leaders - C&I and owner-occupied CRE are expected to lead, with strong production in Florida and Novitas contributing positively [21] Question: Future share repurchase strategy - Management intends to be more assertive with buybacks in 2026 due to strong capital build and favorable credit quality [24] Question: Expense growth outlook - Management targets a 3%-3.5% growth rate in expenses, despite recent increases due to incentives and health insurance costs [41] Question: M&A opportunities - Management is focused on organic growth and sees limited M&A opportunities, preferring quality organizations over fixers [43][81] Question: Credit quality concerns related to tariffs - Management reports no significant impact from tariffs on credit quality, with customers managing the effects [70]

Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth in Q4 2025, with operating earnings per share increasing by 13% to $0.71 [3] - The return on assets for Q4 was 1.22%, and the return on tangible common equity was 13.3% [3] - For the full year, operating earnings per share grew by 18%, from $2.30 to $2.71, with total revenue exceeding $1 billion [3][4] Business Line Data and Key Metrics Changes - Retail and small business lending efforts surpassed $1 billion in annual production for the first time, alongside Novitas equipment finance [4] - The loan portfolio grew at an annualized pace of 4.4%, primarily in the C&I and HELOC categories [9] - Non-interest income was $40.5 million, down from the previous quarter, with growth in wealth management and treasury management offset by a seasonal decline in mortgage [11] Market Data and Key Metrics Changes - Deposits grew by 1% for the year, with a notable increase of $293 million in public funds during Q4 [8] - The cost of deposits improved by 21 basis points to 1.76%, and the cumulative total deposit beta increased from 37% to 40% [8] - The loan-to-deposit ratio increased to 82%, marking a trend of higher loan growth relative to deposits [9] Company Strategy and Development Direction - The company is focused on organic growth and enhancing its retail and small business lending capabilities, as well as expanding its presence in Florida [4][6] - There is a commitment to improving the durability of earnings through reduced securities duration and upgraded risk management systems [5] - The company plans to be more assertive in share buybacks, given strong capital build and favorable credit quality [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2026, citing a strong economy in their markets [13] - The competitive landscape remains robust, with a focus on client service and employee culture to attract talent [36] - The company anticipates stable credit quality and a charge-off rate in the range of 20 to 25 basis points for 2026 [50] Other Important Information - The efficiency ratio improved by 264 basis points, and credit losses declined during the year [3] - The company was recognized for its community commitment and client satisfaction, indicating strong brand positioning [5] Q&A Session Summary Question: Balance sheet growth expectations for 2026 - The company expects balance sheet growth to depend on deposit growth, modeling it a couple hundred basis points below loan growth [17] Question: Anticipated asset class and geographic loan leaders - Florida led production, with C&I and owner-occupied CRE performing well, and Novitas contributing significantly [18] Question: Future buyback strategy - The company intends to be more assertive with buybacks in 2026 due to strong capital build and favorable credit quality [22] Question: Expense growth outlook - The company targets a 3% to 3.5% growth rate in expenses for 2026, despite a challenging environment [38] Question: M&A opportunities - The company is focused on organic growth and sees limited M&A opportunities, preferring quality targets [40][78] Question: Loan growth expectations for 2026 - The company is optimistic about loan growth, expecting similar results to Q4 2025, with potential for 5% or higher growth [84]

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Financial Performance - United Community Banks reported GAAP diluted earnings per share of $0.70 for 4Q25 and $2.62 for the full year[12, 19] - The operating diluted earnings per share were $0.71 for 4Q25 and $2.71 for the full year[12, 19] - The company's GAAP return on assets was 1.21% for 4Q25 and 1.17% for the full year[12, 19] - The operating return on assets was 1.22% for 4Q25 and 1.20% for the full year[14, 19] - Net interest margin was 3.62% for 4Q25, an increase of 36 bps year-over-year[12] Balance Sheet and Loan Portfolio - Total assets reached $28 billion[9] - Total deposits amounted to $23.8 billion[9] - Total loans reached $19.4 billion[9] - The loan portfolio grew by $209 million, or 4.4% annualized, from 3Q25[38] - Loans grew $1.2 billion or 6.6% from 4Q24[38]

Core Viewpoint - United Community Banks, Inc. (UCB) demonstrated strong financial performance in the fourth quarter, with significant increases in net income and earnings per share, indicating robust revenue growth and effective operational management [1]. Financial Performance - Fourth quarter net income rose to $86.5 million from $75.8 million year-over-year, reflecting a growth of approximately 14.3% [1] - Earnings per share increased to $0.70, up from $0.61, marking a growth of 14.8% [1] - On an operating basis, earnings per share was $0.71, which is a 13% increase compared to the previous year [1] - Total revenue for the fourth quarter reached $278.4 million, representing an 11% increase from the same period last year [1] Future Outlook - The CEO, Lynn Harton, expressed confidence in the company's positioning for continued success in 2026, citing strong economic conditions and effective execution across all business lines [2]

Financial Performance - Total revenue for Q4 2025 was $346.367 million, a 10% increase compared to Q4 2024's $353.850 million[7] - Net income for Q4 2025 was $78.733 million, up 30% from $71.413 million in Q4 2024[7] - The diluted net income per share (GAAP) for Q4 2025 was $0.70, a 13% increase from $0.63 in Q4 2024[7] - Net income for Q4 2025 was $86,455, compared to $75,804 in Q4 2024, reflecting a year-over-year increase of 8.7%[11] - Total revenue for the twelve months ended December 31, 2025, reached $1,063,152, an increase from $952,124 in 2024, marking an 11.7% growth[11] - Net income for the year ended December 31, 2024, was $328,095 million, compared to $252,397 million in 2023, reflecting a year-over-year increase of 29.9%[14] Revenue Sources - Net interest revenue increased by 13% year-over-year to $237.926 million from $233.629 million in Q4 2024[7] - Noninterest income for the year-to-date (YTD) was $909.107 million, a 12% increase from $827.368 million in the previous year[7] - Total noninterest income for the twelve months ended December 31, 2025, was $154,045, compared to $124,756 in 2024, showing a 23.5% increase[11] - Noninterest income for the year ended December 31, 2024, was $154,045 million, an increase from $124,756 million in 2023, representing a growth of 23.5%[14] Asset and Liability Management - Total assets increased to $28,002,554, up from $27,720,258 in the previous year, representing a growth of 1.02%[10] - Total deposits increased to $23,798,430, up from $23,460,975 in the previous year, reflecting a growth of 1.4%[10] - Total liabilities increased to $24,697,436 million in 2025, up from $24,453,514 million in 2024, showing a growth of 1.00%[12] - Total interest-bearing liabilities increased to $17,970,907 million in 2025, compared to $17,723,130 million in 2024, marking a growth of 1.40%[12] Efficiency and Profitability - The efficiency ratio (GAAP) improved to 54.40% in Q4 2025 from 56.69% in Q4 2024[7] - The return on common equity (GAAP) for Q4 2025 was 9.48%, up from 9.20% in Q4 2024[7] - The net interest margin (FTE) improved to 3.62% in 2025, up from 3.26% in 2024, indicating a positive trend in profitability[12] - The company reported a return on common equity (GAAP) of 9.48% for the fourth quarter of 2024, compared to 8.45% in the fourth quarter of 2023, indicating improved profitability[14] Credit Quality - Nonperforming assets (NPAs) decreased to $83.959 million from $93.290 million year-over-year[7] - Total nonaccrual loans amounted to $91,098, a decrease from $96,443 in the previous quarter, indicating a reduction of 5.4%[9] - Net charge-offs for Q4 2025 totaled $16,418, compared to $7,676 in Q3 2025, representing a significant increase of 113.5%[9] - Provision for credit losses for the fourth quarter of 2024 was $0.19, compared to $0.16 in the same quarter of 2023, indicating a slight increase in credit risk management[15] Shareholder Returns - The company declared cash dividends of $0.25 per common share, an increase from $0.24 in the previous year[7] - Basic earnings per common share for Q4 2025 was $0.71, compared to $0.61 in Q4 2024, representing a 16.4% increase[11] - The book value per common share (GAAP) increased to $30.17 in the fourth quarter of 2024, up from $28.89 in the fourth quarter of 2023, reflecting a growth of 4.4%[14]

Core Insights - United Community Banks, Inc. reported a net income of $86.5 million for Q4 2025, with diluted earnings per share (EPS) of $0.70, reflecting a year-over-year increase of $0.09 and flat compared to Q3 2025 [1][8] - For the full year 2025, net income reached $328 million, with diluted EPS of $2.62, an increase of 28% from $2.04 in 2024, driven by revenue growth and the absence of a one-time loss [1][8] Financial Performance - Q4 2025 total revenue was $278.4 million, an increase of $27.5 million or 11% from the previous year [8] - The net interest margin improved to 3.62%, up 36 basis points year-over-year, attributed to lower funding costs and an improved asset mix [8][11] - For the full year 2025, total revenue was $1.06 billion, a 12% increase from $952 million in 2024 [8] Earnings and Returns - The return on assets (ROA) for Q4 2025 was 1.21%, up from 1.06% in Q4 2024, while the return on common equity (ROE) was 9.5% [3][8] - Operating return on assets was 1.22% for Q4 2025, with a pre-tax, pre-provision return on assets of 1.78% [3][11] Credit Quality - Net charge-offs for Q4 2025 were $16.4 million, or 0.34% of average loans, compared to 0.21% in Q4 2024 [5][14] - Nonperforming assets (NPAs) were 0.33% of total assets, slightly improved from 0.35% in Q3 2025 [5][14] Shareholder Actions - The company repurchased 1 million shares at an average price of $29.84 per share during Q4 2025 [4][8] - A quarterly common dividend of $0.25 per share was declared, representing a 4% increase year-over-year [8][11] Loan Portfolio - Total loans increased by $209 million, or 4.4% annualized, from Q3 2025, reaching $19.384 billion [12][13] - The composition of the loan portfolio showed growth in owner-occupied commercial real estate and commercial & industrial loans [12][13]

Core Viewpoint - Analysts project that United Community Banks (UCB) will report quarterly earnings of $0.73 per share, reflecting a year-over-year increase of 15.9% and revenues of $273.8 million, up 9.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Key Metrics Forecast - Analysts estimate that the 'Net Interest Margin' will reach 3.6%, up from 3.3% a year ago [5]. - The 'Efficiency Ratio - Operating' is projected at 53.8%, compared to 55.2% last year [5]. - 'Total nonperforming assets' are expected to be $100.61 million, down from $115.64 million in the same quarter last year [5]. Asset and Loan Estimates - The 'Average balance - Total interest-earning assets' is estimated at $26.27 billion, an increase from $25.83 billion a year ago [6]. - 'Total nonperforming loans' are projected to be $98.88 million, down from $113.58 million in the same quarter last year [6]. Revenue Projections - 'Net interest revenue' is expected to be $234.87 million, compared to $210.33 million last year [7]. - 'Total noninterest income' is projected at $40.17 million, slightly down from $40.52 million a year ago [7]. - The average prediction for 'Net interest revenue (FTE)' is $235.98 million, up from $211.41 million in the same quarter last year [8]. Stock Performance - UCB shares have increased by 2.7% over the past month, outperforming the Zacks S&P 500 composite's increase of 1.2% [8]. - UCB holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market in the near term [8].

Earnings Results - United Community Banks, Inc. is set to release its fourth-quarter earnings results on January 14, 2025, before the market opens [1] - Analysts project earnings of 71 cents per share, an increase from 63 cents per share in the same quarter last year [1] - The expected quarterly revenue is $273.6 million, up from $251.93 million a year earlier [1] Stock Repurchase and Market Performance - On December 8, United Community Banks authorized a stock repurchase of up to $100 million [2] - The company's shares increased by 2.3%, closing at $33.28 [2] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst maintained a Market Perform rating and raised the price target from $32 to $34 [3] - DA Davidson analyst maintained a Buy rating and increased the price target from $34 to $36 [3] - Raymond James analyst downgraded the stock from Outperform to Market Perform [3] - Stephens & Co. analyst maintained an Overweight rating with a price target of $36 [3] - Hovde Group analyst maintained a Market Perform rating and reduced the price target from $36 to $32 [3]