United Community Banks delivered second quarter results that met Wall Street’s revenue expectations and saw adjusted earnings per share come in above consensus. Management attributed the performance to a combination of net interest margin expansion and disciplined expense control. CEO Lynn Harton highlighted the stabilizing effect of lower deposit costs and resilient credit quality, noting, “We continue to enjoy solid growth in earnings.” The integration of American National Bank and targeted loan growth contributed to steady operational performance, while ongoing improvement in nonperforming assets reflected a stable risk environment.

Is now the time to buy UCB? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions United Community Banks’s Q2 Earnings Call

• Michael Rose (Raymond James) asked about the sustainability of loan growth and the impact of recent lender hires; President Rich Bradshaw highlighted a healthy pipeline, ongoing recruitment, and stronger activity expected in the second half of the year.
• Michael Rose (Raymond James) also inquired about future margin expansion; CFO Jefferson Harralson detailed expectations for deposit cost reductions and a continued mix shift toward loans, projecting further margin improvement even in a rate-cut environment.
• Catherine Mealor (KBW) questioned buyback strategy given recent share repurchases; Harralson responded that buybacks would be opportunistic at lower prices, but are currently paused due to valuation.
• Russell Gunther (Stephens) pressed on commercial lending pipeline sentiment; Bradshaw and CEO Harton observed increased optimism among clients, with diminished concern over tariffs and a positive outlook due to recent federal tax changes.
• Christopher Marinac (Janney Montgomery Scott) asked about gain-on-sale margins for Navitas loans in varying rate environments; Harralson explained that lower Treasury yields would support higher gain-on-sale margins, while higher rates could compress them.

Catalysts in Upcoming Quarters

Looking ahead, our team will closely monitor (1) whether United Community Banks’ loan growth accelerates as expected in key Southeast markets, (2) the bank’s ability to further reduce deposit costs and expand net interest margins, and (3) the impact of new lender hires and integration of American National Bank on both growth and operational efficiency. The trajectory of credit quality and capital deployment strategy will also be important markers.

United Community Banks currently trades at $31.24, in line with $31.29 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.