United Community Banks reported $0.71 operating EPS, up 8% year-over-year, as loan growth and margin expansion drove results.
United Community Banks (NYSE:UCBI) posted second-quarter operating earnings per share of $0.71, an 8% increase from a year earlier, as revenue climbed 7% year-over-year. Net interest margin expanded to 3.68%, up 18 basis points, supported by stronger loan growth and a $38.5 million reserve release tied to the pending Navitas sale.
Organic loan growth reached a 6.4% annualized pace, with management citing 37 net new producer hires since September and improved lending momentum. Executives forecast upper-single-digit loan growth for next year, while deposits and credit quality remain stable. The Navitas sale is expected to pressure net interest margin by 30 basis points on a static basis.
Shares edged higher as investors focused on the acceleration in core banking performance and strategic refocus following the portfolio divestment.