United Community Banks (UCB) Q4 2025 earnings summary

Executive summary

• Achieved record annual and quarterly financial performance, with 11% year-over-year revenue growth in Q4 and 12% for the full year, alongside strong loan and earnings growth.

• Operating EPS for Q4 was $0.71, up 13% year-over-year; full-year operating EPS grew 18% to $2.71.

• Maintained a premier Southeast regional presence, focusing on high-growth MSAs and a diversified branch network.

• Retail, small business, and Novitas equipment finance each exceeded $1 billion in annual production for the first time.

• Recognized for client satisfaction and workplace culture, with multiple industry awards in 2025.

Financial highlights

• Net interest margin for Q4 was 3.62%, up 36 basis points year-over-year and 4 basis points sequentially; annual NIM at 3.52%.

• Total revenue for Q4 was $278.4 million, up 11% year-over-year; full-year revenue was $1.06 billion, up 12%.

• Operating expenses were $151.4 million, up $4 million, mainly from higher group health insurance and incentive costs.

• Tangible book value per share grew 11% year-over-year to $22.24.

• Loan-to-deposit ratio increased to 82%; CET1 ratio stable at 13.4%.

Outlook and guidance

• Expect continued balance sheet growth and positive loan growth momentum in 2026, with loan-to-deposit ratio rising.

• Margin expected to rise 2–4 basis points in Q1 2026, with tailwinds from asset and liability repricing.

• Fee income growth anticipated in wealth, treasury management, swaps, and SBA; mortgage and Novitas expected to show seasonality but positive momentum.

• Expense growth targeted at 3–3.5% for 2026, with Q1 expenses expected to be flat sequentially.

• Board approved a $100 million share repurchase authorization for 2026.