Overview

• US regional bank's Q2 revenue rose 7% yr/yr, driven by loan growth and margin expansion

• Adjusted EPS for Q2 missed analyst expectations

• Company recently announced acquisition of Peach State Bank and sale of Navitas to focus on core business

Outlook

• Company expects Navitas equipment finance sale to close in Q3 2026

• United says Peach State Bank acquisition and Navitas sale to support long-term growth

Result Drivers

• LOAN GROWTH - Q2 loan portfolio grew $332 mln, or 6.8% annualized, reflecting strong production and geographic footprint

• MARGIN EXPANSION - Net interest margin rose for sixth straight qtr, helped by lower cost of funds and improved asset mix

• NAVITAS PROVISION RELEASE - $38.5 mln pre-tax provision release from reclassifying Navitas loans to held-for-sale boosted GAAP earnings

Company press release: ID:nGNX2Qh1Sm

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Adjusted EPS	Miss	$0.71	$0.81 (7 Analysts)
Q2 EPS		$0.95
Q2 Net Income		$115.64 mln
Q2 Credit Loss Provision		-$29.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for United Community Banks Inc is $39.25, about 8.9% above its July 20 closing price of $36.03

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - Atlantic Union Bankshares beats Q2 EPS estimates on loan growth

• July 21 - KeyCorp Q2 net interest income rises on lower deposit costs

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