United Community Banks’ first quarter results fell short of Wall Street’s revenue expectations, prompting a negative reaction from the market. Management pointed to continued loan growth and an improving net interest margin as key drivers of performance, with CEO Lynn Harton noting, “Annualized loan growth of 4.5% for the quarter and an expansion of our net interest margin of 3 basis points helped to drive these results.” The quarter also benefited from stable credit quality and targeted cost controls, but higher-than-expected operating expenses and subdued spread income, impacted by fewer calendar days, weighed on results.

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

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 From United Community Banks’s Q1 Earnings Call

• Jake Morton (Stephens): Asked about the outlook for deposit costs if interest rates remain steady and how the Peach State acquisition affects this. CFO Jefferson Harralson replied that deposit costs should stay relatively flat, with Peach State having minimal impact due to its small size relative to total assets.
• Michael Rose (Raymond James): Inquired about the sustainability of loan growth and the outlook for construction paydowns. Chief Banking Officer Rich Bradshaw said loan growth remains a priority, with optimism for continued momentum and minimal changes expected in construction lending trends.
• Gary Tenner (D.A. Davidson): Questioned the potential for further M&A activity while integrating Peach State Bank. CEO Lynn Harton stated that the company could pursue another acquisition of similar size without disruption, given its experience and regulatory standing.
• Unknown Analyst (KBW): Sought details on the timing and scale of future share buybacks in light of the Peach State transaction. Harralson explained that buybacks will be price-sensitive but expects to repurchase $50 million in shares by year-end, pending market conditions.
• Kyle Gierman (Hovde Group): Asked about the sustainability of mortgage fee growth and credit quality trends. Harralson cited seasonal tailwinds for mortgage and stable credit quality, with Chief Risk Officer Rob Edwards noting that nonperforming assets fluctuate within a normal range and asset quality remains solid.

Catalysts in Upcoming Quarters

In the quarters ahead, our analysts will monitor (1) the successful integration of Peach State Bank and realization of expected cost synergies, (2) the impact of ongoing hiring on both expense growth and revenue generation, and (3) the trajectory of net interest margin as loan repricing and deposit dynamics play out. Progress on AI-driven efficiency initiatives and further M&A activity will also be important milestones to track.

United Community Banks currently trades at $33.71, down from $34.31 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

The Best Stocks for High-Quality Investors

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.