On an operating basis, United's diluted earnings per share of $0.75 were up 32% from the year-ago quarter. Strong 27% year-over-year revenue growth and a lower provision for credit losses were partly offset by higher expenses.
United's return on assets was 1.29%, or 1.33% on an operating basis, up from 0.67% and 1.01%, respectively for the third quarter of 2024. Return on common equity was 9.2% and return on tangible common equity on an operating basis was 13.6%. On a pre-tax, pre-provision basis, operating return on assets was 1.83% for the quarter. At quarter-end, tangible common equity to tangible assets was 9.71%, up 26 basis points from the second quarter.
Chairman and CEO Lynn Harton stated, "We are proud of our third quarter financial results. Our teams drove solid loan and deposit growth as well as healthy margin expansion. These actions resulted in meaningful improvement in our return on assets and return on tangible common equity. Tangible book value per share grew by $0.59 from the second quarter, an 11% annualized rate. Loans grew by $254 million, or 5.4% annualized, while customer deposits, excluding seasonal outflow of public funds, were up $137 million or 2.6% annualized. Non-interest bearing deposits, excluding public funds, grew at an annualized rate of 4.7%. Operating efficiency and operating leverage also both continued their improving trend."
Harton continued, "I want to thank our outstanding team members across the bank for continuing to deliver not only great financial results, but also exceptional customer service and an atmosphere of trust and caring that makes United a great place to work."
Net charge-offs were $7.7 million or 0.16% annualized of average loans, down two basis points from the second quarter. Nonperforming assets were 0.35% of total assets, up slightly from 0.30% for the second quarter. Provision for credit losses improved by $3.9 million from the second quarter. As of September 30, the allowance for credit losses represents 1.19% of loans, down slightly from 1.21% at June 30.
Third Quarter 2025 Financial Highlights:
EPS of $0.70 was up $0.32 on a GAAP basis compared to third quarter 2024, and EPS of $0.75 was up $0.18, or 32%, on an operating basis; EPS up $0.07 compared to the second quarter on a GAAP basis and up $0.09, or 14%, on an operating basis
Net income of $91.5 million and pre-tax, pre-provision income of $126.0 million, up $12.8 million and $13.7 million, respectively, from the second quarter
Total revenue of $276.8 million improved $16.6 million, or 6%, from the second quarter
Net interest margin of 3.58% increased by eight basis points from the second quarter, reflecting a lower cost of funds and improving asset mix
Noninterest income was up $8.5 million on a linked quarter basis mostly due to gains on other investments, death benefit claims on bank owned life insurance, and a favorable mark on our mortgage servicing rights asset
Provision for credit losses was $7.9 million, down $3.9 million from the second quarter; allowance for credit losses coverage down slightly to 1.19% of total loans; net charge-offs were $7.7 million, or 0.16% annualized of average loans, an improvement of two basis points compared to the second quarter
Noninterest expenses were up $2.9 million compared to the second quarter on a GAAP basis and up $4.3 million on an operating basis, primarily driven by performance-based incentives
Efficiency ratio of 54.3% on a GAAP basis, or 53.1% on an operating basis, improved both linked quarter and year over year
Strong loan production led to loan growth of $254 million, up 5.4% annualized, from the second quarter
Mortgage closings of $283 million compared to $239 million in third quarter 2024; mortgage rate locks of $388 million compared to $306 million in third quarter 2024
Customer deposits were up $58 million from the second quarter, public funds deposits seasonally down $79 million from the second quarter; excluding public funds, customer deposits were up $137 million, including $73 million of noninterest-bearing demand deposits
Return on assets of 1.29%, or 1.33% on an operating basis
Return on common equity and return on tangible common equity on an operating basis improved from the second quarter to 9.2% and 13.6%, respectively
Redeemed preferred stock with a book value of $88.3 million, representing all outstanding preferred shares
Maintained strong capital ratios with preliminary Common Equity Tier 1 of 13.4%
Increased quarterly common dividend to $0.25 per share declared during the quarter, up 4% year-over-year
Conference CallUnited will hold a conference call on Wednesday, October 22 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/10203186/fff7baf488. 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
Third Quarter2025 - 2024Change
For the Nine MonthsEnded September 30,
YTD 2025 - 2024 Change
ThirdQuarter
Second Quarter
FirstQuarter
Fourth Quarter
ThirdQuarter
2025
2024
INCOME SUMMARY
Interest revenue
$
353,850
$
347,365
$
335,357
$
344,962
$
349,086
$
1,036,572
$
1,032,779
Interest expense
120,221
121,834
123,336
134,629
139,900
365,391
415,744
Net interest revenue
233,629
225,531
212,021
210,333
209,186
12
%
671,181
617,035
9
%
Noninterest income
43,219
34,708
35,656
40,522
8,091
n/m
113,583
84,234
35
Total revenue
276,848
260,239
247,677
250,855
217,277
27
784,764
701,269
12
Provision for credit losses
7,907
11,818
15,419
11,389
14,428
35,144
39,562
Noninterest expense
150,868
147,919
141,099
143,056
143,065
5
439,886
435,111
1
Income before income tax expense
118,073
100,502
91,159
96,410
59,784
97
309,734
226,596
37
Income tax expense
26,579
21,769
19,746
20,606
12,437
114
68,094
50,003
36
Net income
91,494
78,733
71,413
75,804
47,347
93
241,640
176,593
37
Non-operating items
3,468
4,833
1,297
2,203
29,385
9,598
38,065
Income tax benefit of non-operating items
(751
)
(1,047
)
(281
)
(471
)
(6,276
)
(2,079
)
(8,231
)
Net income - operating (1)
$
94,211
$
82,519
$
72,429
$
77,536
$
70,456
34
$
249,159
$
206,427
21
Pre-tax pre-provision income (5)
$
125,980
$
112,320
$
106,578
$
107,799
$
74,212
70
$
344,878
$
266,158
30
PERFORMANCE MEASURES
Per common share:
Diluted net income - GAAP
$
0.70
$
0.63
$
0.58
$
0.61
$
0.38
84
$
1.91
$
1.43
34
Diluted net income - operating (1)
0.75
0.66
0.59
0.63
0.57
32
2.00
1.67
20
Cash dividends declared
0.25
0.24
0.24
0.24
0.24
4
0.73
0.70
4
Book value
29.44
28.89
28.42
27.87
27.68
6
29.44
27.68
6
Tangible book value (3)
21.59
21.00
20.58
20.00
19.66
10
21.59
19.66
10
Key performance ratios:
Return on common equity - GAAP (2)(4)
9.20
%
8.45
%
7.89
%
8.40
%
5.20
%
8.53
%
6.61
%
Return on common equity - operating (1)(2)(4)
9.83
8.87
8.01
8.60
7.82
8.92
7.76
Return on tangible common equity - operating (1)(2)(3)(4)
13.56
12.34
11.21
12.12
11.17
12.57
11.18
Return on assets - GAAP (4)
1.29
1.11
1.02
1.06
0.67
1.16
0.85
Return on assets - operating (1)(4)
1.33
1.16
1.04
1.08
1.01
1.19
0.99
Return on assets - pre-tax pre-provision, excluding non-operating items (1)(4)(5)
1.83
1.66
1.55
1.55
1.50
1.70
1.48
Net interest margin (fully taxable equivalent) (4)
3.58
3.50
3.36
3.26
3.33
3.48
3.30
Efficiency ratio - GAAP
54.30
56.69
56.74
56.05
65.51
55.86
61.76
Efficiency ratio - operating (1)
53.05
54.84
56.22
55.18
57.37
54.64
57.84
Equity to total assets
12.78
12.86
12.56
12.38
12.45
12.78
12.45
Tangible common equity to tangible assets (3)
9.71
9.45
9.18
8.97
8.93
9.71
8.93
ASSET QUALITY
Nonperforming assets ("NPAs")
$
97,916
$
83,959
$
93,290
$
115,635
$
114,960
(15
)
$
97,916
$
114,960
(15
)
Allowance for credit losses - loans
215,791
216,500
211,974
206,998
205,290
5
215,791
205,290
5
Allowance for credit losses - total
228,276
228,045
223,201
217,389
215,517
6
228,276
215,517
6
Net charge-offs
7,676
8,225
9,607
9,517
23,651
n/m
25,508
48,173
n/m
Allowance for credit losses - loans to loans
1.13
%
1.14
%
1.15
%
1.14
%
1.14
%
1.13
%
1.14
%
Allowance for credit losses - total to loans
1.19
1.21
1.21
1.20
1.20
1.19
1.20
Net charge-offs to average loans (4)
0.16
0.18
0.21
0.21
0.52
0.18
0.35
NPAs to total assets
0.35
0.30
0.33
0.42
0.42
0.35
0.42
AT PERIOD END ($ in millions)
Loans
$
19,175
$
18,921
$
18,425
$
18,176
$
17,964
7
$
19,175
$
17,964
7
Investment securities
6,163
6,382
6,661
6,804
6,425
(4
)
6,163
6,425
(4
)
Total assets
28,143
28,086
27,874
27,720
27,373
3
28,143
27,373
3
Deposits
24,021
23,963
23,762
23,461
23,253
3
24,021
23,253
3
Shareholders' equity
3,597
3,613
3,501
3,432
3,407
6
3,597
3,407
6
Common shares outstanding (thousands)
121,553
121,431
119,514
119,364
119,283
2
121,553
119,283
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 Nine Months EndedSeptember 30,
ThirdQuarter
SecondQuarter
FirstQuarter
FourthQuarter
ThirdQuarter
2025
2024
Noninterest income reconciliation
Noninterest income (GAAP)
$
43,219
$
34,708
$
35,656
$
40,522
$
8,091
$
113,583
$
84,234
Loss on sale of manufactured housing loans
—
—
—
—
27,209
—
27,209
Gain on lease termination
—
—
—
—
—
—
(2,400
)
Noninterest income - operating
$
43,219
$
34,708
$
35,656
$
40,522
$
35,300
$
113,583
$
109,043
Noninterest expense reconciliation
Noninterest expense (GAAP)
$
150,868
$
147,919
$
141,099
$
143,056
$
143,065
$
439,886
$
435,111
Loss on sale of FinTrust, including goodwill impairment
—
—
—
—
—
—
(5,100
)
FDIC special assessment
—
—
—
—
—
—
(1,736
)
Merger-related and other charges
(3,468
)
(4,833
)
(1,297
)
(2,203
)
(2,176
)
(9,598
)
(6,420
)
Noninterest expense - operating
$
147,400
$
143,086
$
139,802
$
140,853
$
140,889
$
430,288
$
421,855
Net income to operating income reconciliation
Net income (GAAP)
$
91,494
$
78,733
$
71,413
$
75,804
$
47,347
$
241,640
$
176,593
Loss on sale of manufactured housing loans
—
—
—
—
27,209
—
27,209
Gain on lease termination
—
—
—
—
—
—
(2,400
)
Loss on sale of FinTrust, including goodwill impairment
—
—
—
—
—
—
5,100
FDIC special assessment
—
—
—
—
—
—
1,736
Merger-related and other charges
3,468
4,833
1,297
2,203
2,176
9,598
6,420
Income tax benefit of non-operating items
(751
)
(1,047
)
(281
)
(471
)
(6,276
)
(2,079
)
(8,231
)
Net income - operating
$
94,211
$
82,519
$
72,429
$
77,536
$
70,456
$
249,159
