United Community Banks, Inc. announced net income of $71.4 million for the first quarter of 2025, with diluted earnings per share (GAAP) of $0.58. Operating diluted earnings per share reached $0.59, an increase of 13% from the first quarter of the previous year. The bank's return on assets was 1.02% on a GAAP basis and 1.04% on an operating basis.
The first quarter saw solid loan growth of $249 million, or 5.6% annualized, primarily driven by commercial and industrial, equipment finance, and home equity lines of credit. Customer deposits also increased by $309 million, or 5.4% annualized. The net interest margin expanded by 10 basis points from the fourth quarter to 3.36%, contributing to a $1.7 million increase in net interest income.
Asset quality remained stable, with net charge-offs holding steady at $9.6 million, or 0.21% of average loans, consistent with the fourth quarter of 2024. Nonperforming assets improved to 33 basis points relative to total assets, down from 42 basis points. The company also noted that the acquisition of American National Bank was expected to close on May 1, 2025, with an anticipated decrease of approximately $0.13 in tangible book value per share and 7 basis points in the Common Equity Tier 1 ratio.
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