United Community Banks (UCB) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: 3.21%
• Average Volume (3M): 677.42K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.21
• Revenue Growth: 2.95%
• EPS Growth: 42.78%
• Country: US
• Employees: 2,982
• Sector: Financial
• Sector Strength: 68
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 121,499,280
• 10 Day Avg. Volume: 826,373
• 30 Day Avg. Volume: 677,423
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: 10.05
• 1Y Price Target: $35.00
• Price Target Upside: 15.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $35.00 ▲(15.78%Upside)

UCB's overall stock score reflects strong financial performance with consistent revenue growth and low leverage, supported by positive earnings call highlights such as improved net interest margin and successful acquisition integration. Technical indicators are bullish, with valuation metrics suggesting the stock is fairly valued. The main risk is a slight decrease in ROE and net profit margin, along with challenges in noninterest income.

United Community Banks Business Overview & Revenue Model

Company Description

United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. It accepts various deposit products, including checking, savings, money market, and other deposit accounts. The company also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, it originates loans partially guaranteed by the SBA and USDA loan programs. Further, the company provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, it offers reinsurance on a property insurance contract; insurance agency services; treasury management; credit cards; payment and commerce solution, equipment finance, investment advisory, and other related financial services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. The company was founded in 1950 and is headquartered in Blairsville, Georgia.

How the Company Makes Money

United Community Banks generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and leases, encompassing consumer loans, commercial loans, and real estate mortgages. Non-interest income comes from various sources, including service charges on deposit accounts, fees from investment advisory services, gains from the sale of securities, and income from mortgage banking activities. The company also earns money through strategic partnerships with financial technology companies to enhance their service offerings, which contributes to customer acquisition and retention. Additionally, UCB's expansion strategy through mergers and acquisitions of smaller banks strengthens its market presence and customer base, further boosting its revenue streams.

United Community Banks Financial Statement Overview

Summary

United Community Banks exhibits solid financial health with robust revenue growth, improved profitability, and strong cash flow generation. The balance sheet is characterized by low leverage and a strong equity position, reflecting financial stability.

Income Statement

United Community Banks demonstrated strong revenue growth from 2023 to 2024 with a 15.7% increase. The gross profit margin remains robust at 100% for both years, reflecting efficient cost management. However, the absence of EBIT and EBITDA margins in 2024 slightly limits the analysis of operating efficiency. The net profit margin increased from 23.3% in 2023 to 27.1% in 2024, indicating improved profitability.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.07 in 2024, indicating low financial leverage and reduced reliance on debt. The return on equity improved to 7.4%, reflecting better utilization of equity capital. The equity ratio is strong at 12.4%, showcasing a solid capital structure. Overall, the balance sheet shows stability with a conservative approach to leverage.

Cash Flow

Free cash flow grew considerably by 36.6% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.39, indicating efficient conversion of income into cash. The free cash flow to net income ratio of 1.20 further supports strong cash flow management. These metrics highlight the company's ability to generate cash and maintain liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.29B	928.93M	716.27M	695.60M
Gross Profit	879.09M	782.52M	804.22M	724.06M	558.93M
EBITDA	363.94M	277.51M	402.70M	345.70M	200.86M
Net Income	252.40M	187.54M	277.47M	269.80M	164.09M
Balance Sheet
Total Assets	27.72B	27.30B	24.01B	20.95B	17.79B
Cash, Cash Equivalents and Short-Term Investments	4.96B	4.33B	4.13B	6.79B	4.83B
Total Debt	254.15M	324.82M	1.03B	247.36M	326.96M
Total Liabilities	24.29B	24.04B	21.31B	18.72B	15.79B
Stockholders Equity	3.43B	3.26B	2.70B	2.22B	2.01B
Cash Flow
Free Cash Flow	302.69M	221.49M	564.60M	332.84M	140.22M
Operating Cash Flow	349.73M	293.97M	607.31M	359.32M	158.68M
Investing Cash Flow	-991.04M	-163.29M	-2.02B	-1.81B	-1.58B
Financing Cash Flow	157.31M	226.34M	-258.78M	2.16B	2.52B

United Community Banks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Neutral. The current price of 30.23 is below the 20-day moving average (MA) of 31.25, above the 50-day MA of 29.87, and above the 200-day MA of 29.89, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 18.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UCB.

United Community Banks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNST	78 Outperform	$3.37B	14.03	5.21%	2.48%	21.71%	-3.27%
FBP	75 Outperform	$3.28B	10.82	18.38%	3.35%	3.10%	3.14%
FHB	75 Outperform	$2.98B	12.27	9.40%	4.38%	-2.63%	12.05%
UCB	72 Outperform	$3.63B	13.59	7.81%	3.21%	2.95%	42.78%
TCBI	72 Outperform	$3.70B	32.18	4.01%	―	6.86%	-8.81%
FULT	71 Outperform	$3.20B	10.30	10.08%	4.03%	17.62%	1.89%
Sector *	67 Neutral	$17.01B	11.59	9.50%	3.95%	10.65%	1.31%

United Community Banks Corporate Events

United Community Banks Reports Strong Q2 2025 Results

United Community Banks, Inc. reported strong financial results for the second quarter of 2025, with net income of $78.7 million and a pre-tax, pre-provision income of $112.3 million. The company achieved a 14% increase in operating diluted earnings per share compared to the previous year, driven by higher net interest income and lower credit loss provisions. The acquisition of American National Bank contributed to loan growth, and the company saw improvements in net interest margin and operating efficiency. The quarter also marked the company’s 75th anniversary, celebrated alongside its annual customer appreciation day.

The most recent analyst rating on (UCB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.

United Community Banks Holds 2025 Shareholder Meeting

United Community Banks, Inc. held its 2025 annual meeting of shareholders on May 14, 2025, where shareholders voted on four proposals. All director nominees were elected, the compensation of Named Executive Officers was approved, and it was decided to hold future advisory votes on executive compensation annually. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (UCB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Community Banks stock, see the UCB Stock Forecast page.