United Community Banks: 3 Key Takeaways for Long-Term Investors
Key Points
Operating earnings reached $0.77 per share in the third quarter.
Core annualized loan growth reached 10% excluding Navitas and Peach State.
New hires generated $170 million in third-quarter loan production.
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On its third-quarter 2026 earnings call, held on Oct. 20, 2026, United Community Banks (NYSE:UCB) announced operating earnings of $0.77 per share following a balance sheet restructuring. By selling its equipment finance subsidiary, Navitas, and reinvesting proceeds in low-yielding securities, the bank lowered credit risk while protecting funding costs. Three things management said stand out.
1. Exiting Navitas Lowers Risk and Resets the Portfolio
Selling off the subsidiary reduced nonperforming loans and credit losses while freeing up capital for core regional banking.
We simplified the business and reduced credit risk by exiting Navitas.
-- Herbert Lynn Harton, Chairman and Chief Executive
2. Veteran Lender Hires Drive Organic Loan Growth
Instead of relying on secondary lending, United Community Banks expands by recruiting senior commercial bankers who bring existing customer relationships.
Production from new hires within the last year increased to approximately $170 million in the third quarter contributing almost 40% United's funded loan growth for the quarter.
-- Tom H. Speir, Chief Financial Officer
3. Floating Rates Position Margins for Higher Interest Rates
With half of its loans and investment securities floating with short-term benchmarks, earnings expand directly as interest rates remain elevated.
We are well positioned for a higher for longer rate environment as approximately half of our loans and securities are floating rate.
-- Tom H. Speir, Chief Financial Officer
Looking Ahead
Commercial loan demand across Southeast growth markets remains active, giving the bank low-cost deposit funding and liquidity to expand. Management is prioritizing deposit-pricing discipline to protect the net interest margin, the difference between interest earned on loans and interest paid on deposits.
Our 77% loan to deposit ratio gives us a lot of flexibility.
-- Tom H. Speir, Chief Financial Officer
Unlevered capital and a disciplined hiring strategy allow United Community Banks to compound core market share while maintaining defensive reserves against credit stress.
Looking forward, we are well positioned to grow our earnings and returns.
-- Herbert Lynn Harton, Chairman and Chief Executive
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