United Community Banks Posts 19% EPS Gain, $276.5M Revenue, 4.5% Loan Growth
United Community Banks delivered Q1 EPS of $0.70, up 19% year-over-year, on revenue of $276.5 million and 4.5% loan growth that drove another net interest margin expansion. The bank held an 82% loan-to-deposit ratio, cut deposit costs by 9 basis points to 1.67%, and is acquiring Peach State Bancshares for $100.8 million.
1. Strong Earnings and Revenue Growth
United Community Banks reported Q1 operating EPS of $0.70, a 19% increase year-over-year, on revenue of $276.5 million and a 1.22% return on assets, reflecting robust profitability growth.
2. Margin Expansion and Liquidity Position
Net interest margin expanded by 3 basis points, marking five consecutive quarters of growth driven by repricing of the back book and a shift toward higher-yielding loans; the bank maintained an 82% loan-to-deposit ratio and reduced deposit costs to 1.67%.
3. Loan Growth, Hiring, and Credit Quality
The bank achieved 4.5% annualized loan growth supported by 10 new revenue producers expected to reach full productivity within six months. Credit quality remained stable with net charge-offs at 22 basis points, or 10 basis points excluding Navitas.
4. Strategic Acquisition and Outlook
UCB is acquiring Peach State Bancshares for $100.8 million and projects 5–6% loan growth for the rest of 2026. Management forecasts another 3–5 basis point margin improvement in Q2, targets 10% annual growth in revenue producers, and guides 3.5% operating expense growth.