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United Community Banks (UCB)
NYSE:UCB
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United Community Banks
(NYSE:UCB)
75Outperform
United Community Banks (UCB) vs. S&P 500 (SPY)
Market Cap
$3.40B
Dividend Yield3.31%
Average Volume (3M)555.38K
Price to Earnings (P/E)13.9
Beta (1Y)1.29
Revenue Growth12.52%
EPS Growth31.96%
CountryUS
Employees3,121
SectorFinancial
Sector Strength81
IndustryBanking
Share Statistics
EPS (TTM)2.04
Shares Outstanding119,444,176
10 Day Avg. Volume646,288
30 Day Avg. Volume555,383
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)N/A
Price to Sales (P/S)3.67
Price to Cash Flow (P/CF)5.70
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.50Price Target Upside30.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
United Community Banks Business Overview & Revenue Model
Company DescriptionUnited Community Banks, Inc. is a bank holding company, which engages in the provision of consumer and business banking services. The firm caters on individuals and small and medium-sized businesses. It offers checking, savings, mortgages, borrowing, digital baking, credit cards, and investing services. The company was founded in 1950 and is headquartered in Blairsville, GA.
How the Company Makes MoneyUnited Community Banks generates revenue through a variety of financial services. The primary revenue streams include interest income from loans and other financing activities, such as mortgages and commercial loans. Additionally, the bank earns non-interest income from fees and charges on services like account maintenance, transaction processing, and investment advisory. UCB also benefits from strategic partnerships in the financial sector that enhance its service offerings and expand its customer base. Net interest margin, loan growth, and fee-based income are significant contributors to the company's earnings.
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. The company's consistent performance and prudent financial management position it well for future growth, albeit with a focus on maintaining operational efficiencies.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.85
Very Positive
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.75
Positive
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 930.04M | 803.82M | 868.13M | 686.51M | 639.36M | Gross Profit |
| 930.04M | 871.95M | 868.13M | 686.51M | 639.36M | EBIT |
| 0.00 | 341.48M | 356.00M | 347.76M | 209.44M | EBITDA |
| 0.00 | 266.72M | 379.83M | 345.70M | 200.86M | Net Income Common Stockholders |
| 252.40M | 187.54M | 277.47M | 269.80M | 164.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.96B | 4.33B | 4.13B | 6.79B | 4.83B | Total Assets |
| 27.72B | 27.30B | 24.01B | 20.95B | 17.79B | Total Debt |
| 254.15M | 324.82M | 874.66M | 247.36M | 326.96M | Net Debt |
| -265.72M | -679.05M | 362.81M | -2.04B | -1.28B | Total Liabilities |
| 24.29B | 24.04B | 21.31B | 247.36M | 326.96M | 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
Negative
27.90
Price Trends
32.00
Negative
31.77
Negative
29.56
Negative
Market Momentum
-1.20
Positive
25.39
Positive
5.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCB, the sentiment is Negative. The current price of 27.9 is below the 20-day moving average (MA) of 31.06, below the 50-day MA of 32.00, and below the 200-day MA of 29.56, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 25.39 is Positive, neither overbought nor oversold. The STOCH value of 5.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCB.
United Community Banks Risk Analysis
United Community Banks disclosed 45 risk factors in its most recent earnings report. United Community Banks reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Community Banks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.40B | 13.93 | 7.50% | 3.31% | 12.52% | 31.96% | |
74 Outperform | $4.77B | 10.48 | 7.53% | 3.62% | 15.34% | -3.89% | |
67 Neutral | $2.18B | 17.93 | 5.64% | 2.82% | 5.40% | 16.13% | |
66 Neutral | $2.49B | 10.82 | 9.90% | 3.48% | 3.42% | 30.07% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% | |
62 Neutral | $3.22B | 11.23 | 9.69% | 3.91% | 21.10% | -4.20% | |
44 Neutral | $392.88M | ― | -9.34% | 1.05% | 6.27% | 62.30% |
* Financial Sector Average
Performance Comparison
UCB
United Community Banks
28.47
4.20
17.31%
BKU
BankUnited
32.97
7.37
28.79%
FNB
F.N.B.
13.11
0.22
1.71%
FULT
Fulton Financial
17.50
3.16
22.04%
SBCF
Seacoast Banking Of Florida
25.43
1.95
8.30%
FFWM
First Foundation
4.90
-2.11
-30.10%
United Community Banks Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -15.35% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant growth in earnings, tangible book value, and deposits. Despite the slight margin compression and challenges in noninterest income, the overall sentiment was positive due to effective cost management, credit quality improvement, and successful capital actions.Highlights
Strong Earnings Growth
Operating earnings recorded at $0.63 for the quarter and $2.30 for the year, representing an annualized growth of 11% from last quarter and an increase of 9% for the full year of '24 compared to '23.
Increase in Tangible Book Value
Tangible book value increased 9% year-over-year and at a 7% annualized rate during the fourth quarter.
Loan and Deposit Growth
Loan growth accelerated to a 5% annualized growth rate, while deposit growth totaled almost 4% annualized during the quarter.
Improvement in Credit Quality
Credit metrics showed improvement, with total net charge-offs at 21 basis points, the lowest rate since Q2 of '23.
Proactive Cost Management
Expenses were well managed, staying flat with the third quarter, and operating efficiency improved to 55%.
Successful Capital Management
Redemption of $60 million of subordinated debt saved about $1.8 million in 2025 and generated a $2.2 million gain.
Lowlights
Margin Compression
Overall margin decreased by 7 basis points, despite a $1.1 million increase in net interest revenue over the previous quarter.
Challenges in Noninterest Income
Noninterest income was affected by a $1.6 million shrinkage in wealth income fees and $3.3 million in securities losses.
Company Guidance
During United Community Banks' Fourth Quarter 2024 earnings call, key financial metrics were highlighted, showcasing a strong performance across the board. The company reported quarterly earnings of $0.61 per share and $2.04 for the full year, with operating earnings slightly higher at $0.63 for the quarter and $2.30 for the year. This reflects an 11% annualized growth in operating earnings from the previous quarter and a 9% increase year-over-year. The tangible book value saw a 9% rise over the year and 7% annualized growth in the fourth quarter. The operating return on assets was 1.08% for the quarter and 1.02% for the year, while the operating return on tangible common equity rose to 12.1% for the quarter and 11.4% for the year. Loan growth reached a 5% annualized rate, with deposit growth at 4% annualized, driven by seasonal increases in public funds. Despite a 7 basis point decline in overall margin, net interest revenue rose by $1.1 million from the previous quarter. The efficiency ratio improved to 55%, with expenses remaining flat. Credit quality remained strong, with total net charge-offs at 21 basis points, the lowest since the second quarter of 2023. The bank maintained ample liquidity, and its loan-to-deposit ratio stood at 78%. The CET1 ratio was over 13%, with regulatory capital ratios above peers. The company is optimistic about 2025, particularly with the expansion in South Florida and the integration of American National Bank.United Community Banks Corporate Events
Executive/Board Changes
United Community Banks Secures Key Executive Leadership
Neutral
Feb 11, 2025
On February 10, 2025, United Community Banks, Inc. entered into an employment agreement with Richard W. Bradshaw, ensuring his continuation as Executive Vice President and Chief Banking Officer. The agreement stipulates base and incentive compensation along with terms related to termination, and includes restrictive covenants on confidentiality and competition, impacting the company’s executive management stability and strategic continuity.
M&A TransactionsFinancial Disclosures
United Community Banks Reports Strong 2024 Financial Results
Positive
Jan 22, 2025
United Community Banks, Inc. reported strong financial results for the fourth quarter and full year of 2024, with a net income of $75.8 million for the quarter and $252 million for the year. The company experienced significant growth in loans and customer deposits, leading to increased net interest income despite a slight decrease in net interest margin. The acquisition of American National Bank was announced, expanding United’s presence in South Florida. The company’s strong performance was attributed to higher net interest income, stable credit quality, and increased noninterest income, positioning it well for 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.