United Community Banks Q2 net income jumps 47% on loan growth

United Community Banks, Inc. announced financial results for the quarter ended June 30, 2026, delivering strong spread income supported by 6.8% annualized loan growth and net interest margin expansion for the sixth consecutive quarter. Chairman and CEO Lynn Harton noted that the results reflect strong loan growth and a strategic emphasis on core banking, with the loan portfolio growing $332 million in the second quarter. Excluding the pending sale of the Navitas equipment finance business, the company had over $1 billion in loan production and grew loans 6.4% annualized.

Second Quarter 2026 Financial Performance

The following table summarizes key income statement metrics for the second quarter of 2026 compared to the second quarter of 2025 and the first quarter of 2026.

Metric:	Q2 2026	Q1 2026	Q2 2025	YoY Change
Total Revenue:	$279,280 thousand	$276,510 thousand	$260,239 thousand	+7%
Net Interest Revenue:	$240,900 thousand	$232,764 thousand	$225,531 thousand	+7%
Noninterest Income:	$38,380 thousand	$43,746 thousand	$34,708 thousand	+11%
Net Income (GAAP):	$115,638 thousand	$84,289 thousand	$78,733 thousand	+47%
Net Income - Operating:	$86,403 thousand	$84,684 thousand	$82,519 thousand	+5%
Pre-Tax Pre-Provision Income:	$119,365 thousand	$119,208 thousand	$112,320 thousand	+6%
Noninterest Expense:	$159,915 thousand	$157,302 thousand	$147,919 thousand	+8%
Provision for Credit Losses:	$(29,803) thousand	$10,853 thousand	$11,818 thousand	n/m

Total revenue of $279.3 million improved $19.0 million, or 7%, from a year ago. Net income of $115.6 million and pre-tax, pre-provision income of $119.4 million were up $36.9 million and $7.0 million, respectively, from a year ago. GAAP EPS of $0.95 was up $0.32 from the second quarter of 2025, while operating EPS of $0.71 was up $0.05, or 8%, over the same period.

Key Performance Ratios

The following table presents selected performance ratios for the second quarter of 2026 versus the second quarter of 2025.

Ratio:	Q2 2026	Q2 2025
Net Interest Margin (FTE):	3.68%	3.50%
Efficiency Ratio (GAAP):	57.01%	56.69%
Efficiency Ratio - Operating:	56.69%	54.84%
Return on Assets (GAAP):	1.63%	1.11%
Return on Assets - Operating:	1.22%	1.16%
Return on Common Equity (GAAP):	12.56%	8.45%
Return on Common Equity - Operating:	9.39%	8.87%
Return on Tangible Common Equity - Operating:	12.98%	12.34%
Diluted EPS (GAAP):	$0.95	$0.63
Diluted EPS - Operating:	$0.71	$0.66

The net interest margin of 3.68% increased by 18 basis points from a year ago and 3 basis points from the first quarter of 2026, driven by a lower cost of funds and improving asset mix. The efficiency ratio was 57.0% on a GAAP basis and 56.7% on an operating basis, up slightly from a year ago and the first quarter, primarily due to the Navitas California lender's license settlement.

Credit Quality and Provision

The provision for credit losses was a negative $29.8 million in the second quarter of 2026, reflecting a $38.5 million release of the allowance on Navitas loans reclassified to held-for-sale. Excluding this release, the provision was $8.7 million, down $3.1 million from a year ago and $2.2 million from the first quarter. Allowance for credit losses coverage was 1.04% of total loans. Net charge-offs were $7.9 million, or 0.16% of average loans annualized, including $3.7 million on the Navitas portfolio. Nonperforming assets stood at $103,387 thousand, compared to $83,959 thousand in the second quarter of 2025.

Balance Sheet and Capital

The following table presents selected balance sheet figures at period end ($ in millions).

Item:	Q2 2026	Q1 2026	Q2 2025	YoY Change
Loans Held for Investment:	$18,024M	$19,602M	$18,921M	-5%
Investment Securities:	$6,377M	$5,889M	$6,382M	—
Total Assets:	$29,051M	$28,177M	$28,086M	+3%
Deposits:	$23,724M	$24,025M	$23,963M	-1%
Shareholders' Equity:	$3,745M	$3,655M	$3,613M	+4%

Customer deposits were down $295 million from the first quarter, mostly due to seasonal public funds outflows. The preliminary Common Equity Tier 1 ratio stood at 13.5%, and the tangible common equity to tangible assets ratio was 9.94%. Book value per common share was $31.27 and tangible book value per common share was $23.31. A quarterly common dividend of $0.25 per share was declared, up 4% year over year.

Noninterest Expense and Notable Items

Noninterest expense was up $2.6 million on a GAAP basis and up $7.4 million on an operating basis compared to the first quarter of 2026. Included in noninterest expense was a $4.5 million settlement payment to the California Department of Financial Protection and Innovation (DFPI) and associated legal fees related to a lender's license matter for Navitas. The matter has been closed and the license obtained.

Strategic Actions

During the quarter, United Community Banks announced two strategic transactions:

Acquisition of Peach State Bank: Announced as a strategic action to expand and deepen relationships in the Southeast.
Sale of Navitas equipment finance business: A previously announced agreement expected to close in the third quarter of 2026. Substantially all equipment financing loans were transferred to held-for-sale in the second quarter as a result of the pending sale of Navitas Credit Corp.

As of June 30, 2026, United Community Banks had $29.1 billion in assets and operated 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee.

United Community Banks, Inc. and Peach State Bancshares, Inc. have established July 20, 2026, as the deadline for Peach State shareholders to elect their preferred form of consideration in the pending merger. The companies announced that United has secured all necessary regulatory approvals to acquire Peach State, with the transaction expected to close on August 3, 2026, pending satisfaction of remaining conditions. This milestone allows shareholders to finalize their decisions regarding the structure of the payout they will receive.

Peach State shareholders of record must submit a properly completed election form and letter of transmittal to Continental Stock Transfer & Trust Company by 5:00 p.m. Eastern Time on July 20, 2026. Shareholders lacking physical stock certificates may submit a notice of guaranteed delivery by the deadline, provided the actual certificates are received by Continental by 5:00 p.m. Eastern Time on July 27, 2026. Failure to submit valid election materials will result in the shares being treated as non-election shares, distributed according to the agreement's proration procedures.

Merger Consideration Details

Under the terms of the Merger Agreement dated April 20, 2026, shareholders are entitled to receive one of two options for each share of Peach State common stock held:

$31.75 in cash, subject to applicable withholding tax, without interest.
0.8978 shares of United common stock, par value $1.00 per share.

The final consideration is subject to proration to ensure the overall payout to Peach State shareholders consists of 50% cash and 50% United stock. Any fractional shares of United common stock will be settled in cash.

Consideration Type	Details per Share
Cash Option	$31.75
Stock Option	0.8978 shares of United common stock
Proration Ratio	50% cash / 50% stock

Transaction Background and Approvals

The merger agreement outlines the allocation and proration procedures applicable to the election process. All necessary documents were previously mailed to shareholders of record as of June 1, 2026. A proxy statement/prospectus dated June 10, 2026, provides a comprehensive description of the merger terms. United Community Banks, Inc. is the financial holding company for United Community, a top 100 U.S. financial institution with $28.2 billion in assets as of March 31, 2026. Peach State Bancshares, Inc. is the holding company for Peach State Bank & Trust, which reported $788 million in assets as of March 31, 2026.