United Community Bank's Latest Results: Strong Loan Growth Amid Margin Pressures and Improved Credit Quality

Loan Growth and Product Type Contributions:
- United Community Bank reported a 5% annualized growth rate for loans at the end of the quarter, with strong performance in various product types.
- The growth was driven by 13% annualized growth in C&I, 15% annualized growth in Navitas, and 20% annualized growth in HELOC products.

Deposit Growth and Funding:
- The bank experienced 3.7% annualized deposit growth, totaling $213 million, which funded the loan growth significantly.
- The deposit growth was supported by stable DDA and seasonal strong public funds.

Margin and Interest Income:
- The overall margin was down 7 basis points, while net interest revenue increased by $1.1 million compared to the previous quarter.
- The decrease in margin was a result of the manufactured housing portfolio sale and mix changes due to seasonality.

Credit Quality and Provisions:
- Total net charge-offs improved to 21 basis points, marking the lowest rate since Q2 of '23.
- The bank maintained stable credit conditions, with a loan loss provision of $11.4 million covering net charge-offs and loan growth.

Capital and Margin Improvement:
- United Community Bank redeemed $60 million of subordinated debt, saving approximately $1.8 million in 2025.
- This action helped to improve the margin and maintain strong capital ratios, with CET1 remaining over 13%.