United Community Banks: Quarter 3 Review Showcases Resilience and Growth
United Community Banks (UCB) has wrapped up a strong quarter, showcasing the company's resilience and growth amidst an upward rate environment. In its latest Q3 2026 conference call transcript, UCB reported significant improvements in core loan growth, solid deposit growth, and stable net interest revenue.
Lynn Harton, Chairman and Chief Executive Officer, noted that the company's operating earnings reached $0.77 a share, a substantial increase from the $0.71 recorded in the previous quarter. The strong core loan growth of 10% annualized was driven by new hires, with nearly 40% contributed by revenue producers hired within the last year.
The addition of Peach State and the sale of Navitas significantly de-risked the company's credit perspective, with net charge-offs at a mere 9 basis points. This strong credit performance, combined with stable non-interest-bearing deposits and modest deposit cost increases, bodes well for UCB's future growth prospects.
Tom Speir, Chief Financial Officer, highlighted the company's robust loan production, exceeding $1 billion in the second quarter. The quarterly reported loan yield of 6.06% is a promising indication of the company's ability to generate sustainable and profitable growth moving forward.
The company's capital ratios remain strong, providing flexibility to support growth from new hires and optionality to return capital to shareholders or welcome additional quality banks into the fold. With a loan-to-deposit ratio of 77%, UCB is well-positioned to deploy liquidity into customer relationship lending opportunities.
UCB's strategic actions have positioned the company for future success, with a solid foundation in place to drive sustainable and profitable growth. As the industry continues to evolve, United Community Banks stands out as a resilient and growing player, poised to capitalize on emerging opportunities.
