United Community Banks Reports $84.3 Million Net Income and Announces Merger with Peach State Bancshares

United Community Banks, Inc. reported a net income of $84.3 million for the first quarter of 2026, translating to diluted earnings per share of $0.69, an increase from $71.4 million and $0.58 per share in the same period of 2025. The bank's total revenue rose to $277 million, up from $248 million year-over-year, driven by a 10% increase in net interest revenue, which reached $234 million. This growth was primarily attributed to a decrease in deposit interest expenses, which fell by $20.9 million, allowing the net interest margin to improve to 3.65% from 3.36% in the prior year.

In terms of operational metrics, total loans increased to $19.6 billion as of March 31, 2026, compared to $19.4 billion at the end of 2025. The allowance for credit losses (ACL) on loans decreased slightly to $208.4 million, representing 1.06% of total loans, down from 1.09% at the end of the previous year. The bank recorded provisions for credit losses of $10.9 million, a reduction from $15.4 million in the first quarter of 2025, reflecting a more favorable economic outlook.

Strategically, United Community Banks announced a definitive merger agreement to acquire Peach State Bancshares, Inc. and its subsidiary, Peach State Bank & Trust, which reported total assets of $789 million as of March 31, 2026. The merger is expected to close in the third quarter of 2026 and aims to enhance United's market presence in Georgia. Additionally, the bank redeemed $100 million in subordinated debentures on April 30, 2026, as part of its ongoing capital management strategy.

As of March 31, 2026, United Community Banks had total assets of $28.2 billion and a total deposit base of $24 billion, reflecting a $237 million increase in deposits since the end of 2025. The bank's employee headcount stood at 3,118 full-time equivalent employees. The bank's capital ratios remained strong, with a common equity tier 1 (CET1) capital ratio of 13.40%, well above the regulatory minimum requirements, indicating a solid capital position to support future growth and strategic initiatives. Looking ahead, United Community Banks anticipates continued growth driven by its strategic initiatives and favorable economic conditions.