United Community Banks, Inc. announced net income of $78.7 million for the second quarter of 2025, with diluted earnings per share (GAAP) of $0.63. On an operating basis, diluted earnings per share reached $0.66, representing a 14% increase from the second quarter of the previous year. The bank's return on assets was 1.11% on a GAAP basis and 1.16% on an operating basis.
The net interest margin improved significantly by 14 basis points from the first quarter, contributing to a $13.5 million growth in net interest income. Excluding the American National Bank acquisition, loans grew by $194 million, or 4.2% annualized, while customer deposits, excluding seasonal public fund outflows, increased by $64 million, or 1.3% annualized. The acquisition of American National Bank was successfully completed on May 1, 2025.
Asset quality continued to improve, with net charge-offs at $8.2 million, or 0.18% of average loans, down three basis points from the first quarter. Nonperforming assets improved to 30 basis points relative to total assets, down from 33 basis points. The provision for credit losses included $2.5 million to establish an allowance on the acquired American National Bank loans, while the overall allowance for credit losses remained steady at 1.21% of loans.
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