United Community Banks, Inc. Reports Second Quarter Earnings

Core Viewpoint - United Community Banks, Inc. reported strong financial results for the second quarter of 2025, driven by margin expansion, stable credit quality, and disciplined expense control, with net income reaching $78.7 million and diluted earnings per share increasing to $0.63 [1][5]. Financial Performance - The diluted earnings per share on an operating basis was $0.66, reflecting a 14% increase from the same quarter last year, primarily due to higher net interest income and lower provision for credit losses [2][5]. - Net income for the quarter was $78.7 million, with pre-tax, pre-provision income of $112.3 million, both showing improvements from the previous quarter [1][5]. - Total revenue for the quarter was $260 million, an increase of $13 million or 5% from the first quarter [5]. Key Ratios and Metrics - Return on assets was reported at 1.11%, with an operating return on assets of 1.16% [3][8]. - Return on common equity was 8.5%, while return on tangible common equity on an operating basis was 12.3% [3][8]. - The efficiency ratio improved to 56.7% on a GAAP basis and 54.8% on an operating basis [5][8]. Asset Quality - Net charge-offs were $8.2 million, or 0.18% of average loans, which is a decrease of 3 basis points from the first quarter [4][5]. - Nonperforming assets were 30 basis points relative to total assets, improving from 33 basis points in the previous quarter [4][5]. - The provision for credit losses was $11.8 million, down $3.6 million from the first quarter, maintaining an allowance for credit losses steady at 1.21% of loans [5][8]. Growth and Strategic Initiatives - The company successfully completed the acquisition of American National Bank on May 1, contributing to loan growth of $194 million, or 4.2% annualized, excluding loans from the acquisition [4][5]. - Tangible book value per share increased by $0.42 during the quarter [4]. - Customer deposits, excluding those from the acquisition, increased by $64 million or 1.3% annualized, despite a seasonal outflow of public funds [4][5].