United Community Banks, Inc. (NYSE:UCB) reported fourth-quarter results on Wednesday that showed stronger-than-expected revenue but a notable rise in net charge-offs, prompting a sharp pullback in its shares.
The regional lender’s stock fell 6.83% in pre-market trading following the announcement.
On an operating basis, the bank posted fourth-quarter earnings per share of $0.71, matching analyst forecasts. Revenue totaled $278.4 million, beating the consensus estimate of $273.56 million. However, net charge-offs increased to $16.4 million, equivalent to 0.34% of average loans on an annualized basis, up from 0.21% a year earlier and 0.16% in the third quarter.
Quarterly net income rose 14% year on year to $86.5 million from $75.8 million. Net interest margin improved to 3.62%, representing an increase of 36 basis points compared with the prior year and a 4-basis-point gain from the previous quarter.
“The fourth quarter marks a great ending to a rewarding year,” said Chairman and CEO Lynn Harton. “Our teams delivered healthy loan growth for all of 2025, leading to improvement in our earning asset mix. That improvement, combined with our focus on deposit pricing, drove a 36 basis points expansion in our net interest margin year over year.”
Total loans increased by $209 million, or 4.4% on an annualized basis, from the third quarter, while customer deposits declined by $242 million. The allowance for credit losses stood at 1.16% of loans, slightly lower than 1.19% at the end of September.
For the full year 2025, United Community Banks reported net income of $328 million, up 30% from $252 million in 2024. Diluted earnings per share for the year rose to $2.62 from $2.04 a year earlier.
During the quarter, the bank repurchased one million common shares at an average price of $29.84 and redeemed $35 million of senior debt.