United Community Banks reported fourth-quarter revenue growth of 11% year-over-year, driven by net interest margin expansion and 4.4% annualized loan growth. Operating earnings per share reached $0.71, a 13% increase from the prior year. Profitability metrics were robust, with return on assets of 1.22% and return on tangible common equity of 13.3%. For the full year, operating earnings per share rose 18% to $2.71, margin expanded by 23 basis points, and the efficiency ratio improved by 264 basis points. Annual revenue surpassed $1 billion, up 12% year-over-year.

Loan balances grew at a 4.4% annualized pace in the quarter, led by commercial and industrial lending and home equity lines of credit. C&I loans increased 12%, and owner-occupied commercial real estate performed well. The bank achieved its largest quarterly production ever, with Florida as the top state contributor, bolstered by two recent acquisitions. SBA commitment activity set a record, even during a government shutdown, and equipment finance originations through Novitas exceeded $1 billion for the first time, representing 9.5% of total loans. Management plans to cap Novitas exposure at 10%, anticipating continued originations and secondary market sales.

Net interest margin rose four basis points to 3.62%, or six basis points excluding loan accretion, reflecting lower funding costs and a higher loan-to-deposit ratio of 82%. Public fund deposits increased by $293 million, and the cost of deposits improved by 21 basis points to 1.76%, with a total deposit beta of 40%. Excluding public funds, average deposit balances dipped slightly due to seasonal outflows and targeted rate reductions for higher-cost accounts. Capital metrics remain strong, with a common equity tier 1 ratio of 13.4% and tangible common equity of 9.92%. The bank holds limited brokered deposits and wholesale borrowings.

Non-interest income totaled $40.5 million, down from the prior quarter’s elevated level, as mortgage fees softened seasonally while wealth and treasury management fees remained strong. Operating expenses were $151.4 million, up $4 million, driven by higher health insurance costs and incentive accruals tied to record loan production. Management expects flat first-quarter expenses, targeting 3.0%–3.5% growth for 2026. Net charge-offs were 34 basis points, including a $6 million charge-off on a $14 million franchise loan and a $4 million SBA loan loss. The bank increased its annualized dividend to $1 per share, repurchased 1 million shares at an average price below $30, and plans more assertive buybacks in 2026. No significant acquisitions are planned, as leadership focuses on organic growth and a light M&A environment.