Q4 2025 United Community Banks Inc Earnings Call Transcript
Key Points
- United Community Banks Inc (UCB) reported an 11% year-over-year revenue growth, driven by margin expansion and 4.4% annualized loan growth.
- Operating earnings per share increased by 13% year-over-year to $0.71, with a return on assets of 1.22% and return on tangible common equity of 13.3%.
- The company achieved over $1 billion in revenue for the year, marking a 12% year-over-year growth.
- UCB successfully repurchased 1 million shares at an average price below $30 per share, enhancing shareholder value.
- The company was recognized for high retail client satisfaction and as a top bank to work for, reflecting a strong corporate culture and community commitment.
- Operating expenses increased by $4 million, primarily due to higher group health insurance costs and increased incentives from record loan production.
- Net charge-offs rose to 34 basis points, driven by two significant C&I loan charge-offs, indicating potential credit quality concerns.
- The cost of deposits increased to 1.76%, although there was a slight improvement in the cumulative total deposit beta.
- Non-interest income decreased by $2.8 million from the previous quarter, with mortgage income softening due to seasonality.
- The loan-to-deposit ratio increased for the third consecutive quarter, reaching 82%, which may indicate a tightening liquidity position.
Good morning and welcome to United Community Bank's fourth-quarter 2025 earnings call. Hosting our call today are Chairman and Chief Executive Officer, Lynn Harton; Chief Financial Officer, Jefferson Harralson; President and Chief Banking Officer, Rich Bradshaw; and Chief Risk Officer Rob Edwards.
United's presentation today includes references to operating earnings, pre-tax, pre-credit earnings, and other non-GAAP financial information. For these non-GAAP financial measures, United has provided a reconciliation to the corresponding GAAP financial measure in the financial highlights section of the earnings release as well as at the end of the investor presentation. Both are included on the website at UCBI.com.
Copies of the fourth-quarter's earnings release and investor presentation were filed this morning on Form-8K with the SEC. And a replay of this call will be available in the Investor Relations section of the company's website at ucbi.com.
Please be aware that during this call, forward-looking statements may be made by representatives of United. Any forward-looking
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