- United Community Banks (UCB, Financial) reports net income of $71.4 million for Q1 2025.
- Net interest margin increased by 10 basis points, reaching 3.36%.
- Customer deposits grew by $309 million, or 5.4% annualized.
United Community Banks, Inc. (UCB) announced impressive first-quarter earnings for 2025, with a net income of $71.4 million and pre-tax, pre-provision income totaling $106.6 million. The diluted earnings per share (EPS) rose to $0.58, marking a $0.07 increase compared to Q1 2024, though it decreased by $0.03 from the previous quarter.
Noteworthy is the expansion of the net interest margin by 10 basis points, now at 3.36%. This improvement was primarily achieved through effective management of liabilities, including lowering deposit rates and redeeming debt instruments. Loan portfolio growth was strong, with an increase of $249 million, representing a 5.6% annualized growth rate. Meanwhile, customer deposits saw an uplift of $309 million, or 5.4% annualized growth.
The credit quality indicators remained stable, with net charge-offs maintaining at 0.21% of average loans, and nonperforming assets improved to 0.33% of total assets, down from 0.42% in Q4 2024. Additionally, the allowance for credit losses showed a slight increase to 1.21% of loans.
UCB also maintained robust capital ratios, with a preliminary Common Equity Tier 1 ratio of 13.3%, and declared a quarterly dividend of $0.24 per share, up by 4% year-over-year. The company has announced its plan to acquire American National Bank in Oakland Park, Florida, which will bolster its market presence in South Florida.
