Third Quarter 2026
Filed Oct 20, 2026Third Quarter Results Reflect Execution of Significant Strategic Initiatives, Strong Core Loan Growth, and Robust Deposit Growth
Operating earnings, margin, core loan and deposit growth, credit quality and operating efficiency improved, but GAAP results were materially affected by the Navitas sale and securities portfolio repositioning, producing a GAAP net loss and negative total revenue.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue - third quarter 2026GAAP | −$11.97M | – | n/m |
| Total revenue - operating - third quarter 2026non-GAAP | $291.9M | – | – |
| Net interest revenue - third quarter 2026GAAP | $251.2M | – | 8 % |
| Noninterest income - third quarter 2026GAAP | −$263.2M | – | n/m |
| Noninterest income - operating - third quarter 2026non-GAAP | $40.70M | – | – |
| Interest revenue - third quarter 2026GAAP | $362.6M | – | – |
| Interest expense - third quarter 2026GAAP | $111.4M | – | – |
| Net interest margin (fully taxable equivalent) - third quarter 2026other | 3.68 % | stable | 10 basis points |
| Provision for credit losses - third quarter 2026GAAP | $10.01M | – | n/m |
| Provision for credit losses - operating - third quarter 2026non-GAAP | $10.01M | – | – |
| Noninterest expense - third quarter 2026GAAP | $162.2M | increased $2.3 million | 8 |
| Noninterest expense - operating - third quarter 2026non-GAAP | $155.7M | decreased $3.3 million | – |
| Net (loss) income - third quarter 2026GAAP | −$139.7M | – | n/m |
| Net income - operating - third quarter 2026non-GAAP | $93.70M | up 8% | (1 ) |
| Diluted net income per common share - third quarter 2026GAAP | $ (1.16 ) | – | n/m |
| Diluted income per common share - operating - third quarter 2026non-GAAP | $ 0.77 | – | 3 |
| Return on assets - third quarter 2026GAAP | (1.89 )% | – | – |
| Return on assets - operating - third quarter 2026non-GAAP | 1.27 % | improved 5 bps | – |
| Return on common equity - third quarter 2026GAAP | (14.85 )% | – | – |
| Return on common equity - operating - third quarter 2026non-GAAP | 9.95 | – | – |
| Return on tangible common equity - operating - third quarter 2026non-GAAP | 13.90 % | – | – |
| Efficiency ratio - operating - third quarter 2026non-GAAP | 53.11 % | – | – |
| Total loans held for investment - September 30, 2026GAAP | $18.99B | – | (1 ) |
| Core loan growth excluding Peach State and Navitas - third quarter 2026other | $444M | 9.8% annualized | – |
| Deposits - September 30, 2026GAAP | $24.89B | – | 4 |
| Customer deposit growth excluding Peach State acquisition - third quarter 2026other | $473M | 8.0% annualized | – |
| Net charge-offs - third quarter 2026GAAP | $3.97M | – | (48 ) |
| Net charge-offs to average loans HFI - third quarter 2026other | 0.09 | – | – |
| Allowance for credit losses - total - September 30, 2026GAAP | $200.2M | – | (12 ) |
| Allowance for credit losses - total to loans - September 30, 2026other | 1.05 | up one basis point | – |
| Nonperforming assets - September 30, 2026GAAP | $81.27M | – | (17 ) |
| Common Equity Tier 1 - third quarter 2026other | 13.0% | – | – |
| Net income - nine months ended September 30, 2026GAAP | $60.18M | – | (75 ) |
| Net income - operating - nine months ended September 30, 2026non-GAAP | $264.8M | – | 6 |
| Diluted net income per common share - nine months ended September 30, 2026GAAP | $ 0.49 | – | (74 ) |
| Diluted income per common share - operating - nine months ended September 30, 2026non-GAAP | $ 2.18 | – | 9 |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased 1.395 million common shares at an average price of $35.81 per share for an aggregate of $50 million in the third quarter.
- The Board approved an incremental $100 million share repurchase authorization through the end of 2027, bringing the current outstanding repurchase authorization to $113 million.
- Quarterly common dividend increased to $0.26 per share declared during the quarter, up 4% year over year.
What drove it
- United completed the acquisition of Peach State Bank on August 1, the sale of its Navitas equipment finance business on September 1, and the restructuring of its investment portfolio in early September.
- Peach State contributed $520 million of loans and $678 million of deposits at the time of the acquisition.
- New loan production exceeded $1 billion for the second consecutive quarter.
- $2.2 billion in held-to-maturity securities were reclassified to available-for-sale designation, and long-dated, low-yielding securities with an amortized cost basis of $2.5 billion were subsequently sold.
- The securities repositioning shortened duration and significantly improved the yield on the portfolio.
Concerns
- GAAP total revenue was $ (11,966 ) (in thousands), reflecting the strategic actions taken in the third quarter.
- GAAP net loss was $ (139,745 ) (in thousands) and diluted GAAP EPS was $ (1.16 ).
- Securities (losses) gains, net were $ (366,101 ) (in thousands) in the third quarter.
- Shareholders’ equity was $ 3,507 million at September 30, 2026, compared with $ 3,745 million in the second quarter of 2026.
- Tangible book value was $ 20.80 per common share, compared with $ 23.31 in the second quarter of 2026.
What to watch
- Performance of core loan growth and customer deposit growth after the Peach State acquisition and Navitas sale.
- Net interest margin following the portfolio repositioning, which was 3.68 % in the third quarter and stable from the second quarter.
- Operating efficiency ratio, which improved to 53.11 % from 56.69 % in the second quarter.
- Credit trends, including provision for credit losses of $ 10,013 (in thousands), net charge-offs of $ 3,973 (in thousands), and allowance for credit losses coverage of 1.05.
- Redeployment of the $2.1 billion of securities repositioning cash proceeds and the $2.0 billion of Navitas sale proceeds into higher-yielding securities and borrowings paydown.
Balance sheet and cash flow
- Cash and cash equivalents were $ 781,605 (in thousands) at September 30, 2026, compared with $ 395,754 (in thousands) at December 31, 2025.
- Total assets were $ 28,882,037 (in thousands) at September 30, 2026, compared with $ 28,002,554 (in thousands) at December 31, 2025.
- Long-term debt was $ 39,686 (in thousands) at September 30, 2026, compared with $ 120,400 (in thousands) at December 31, 2025.
- United sold its Navitas equipment finance business for $2.0 billion in cash proceeds, a 7% premium to par.
- The securities repositioning resulted in $2.1 billion of cash proceeds, which, together with the $2.0 billion of Navitas sale proceeds, were redeployed into higher-yielding securities and used to pay down borrowings.
Analysis
United reported a GAAP net loss of $ (139,745 ) (in thousands), or $ (1.16 ) per diluted share, as the quarter absorbed the strategic sale of Navitas and investment securities portfolio repositioning. GAAP total revenue was $ (11,966 ) (in thousands), including securities (losses) gains, net of $ (366,101 ) (in thousands). On the operating basis, total revenue was $ 291,905 (in thousands), operating net income was $ 93,703 (in thousands), and operating diluted EPS was $ 0.77.
Core banking activity expanded during the quarter. Core loan growth excluding Peach State and Navitas was $444 million, or 9.8% annualized, while customer deposits rose $473 million, or 8.0% annualized, excluding deposits received from Peach State. The acquired Peach State business contributed $520 million of loans and $678 million of deposits. Total loans held for investment were $ 18,988 million and deposits were $ 24,888 million at September 30, 2026.
Profitability excluding the strategic items strengthened sequentially. Net interest margin was 3.68 %, stable from the second quarter and 10 basis points higher year over year. Operating net income increased 8% from the second quarter, operating return on assets improved 5 bps to 1.27 %, and the operating efficiency ratio improved to 53.11 % from 56.69 %. Operating return on tangible common equity was 13.90 %.
Management redeployed liquidity following the Navitas transaction and securities actions. The Navitas sale produced $2.0 billion in cash proceeds, while the securities repositioning produced $2.1 billion in cash proceeds after the sale of long-dated, low-yielding securities with an amortized cost basis of $2.5 billion. Credit indicators improved, with nonperforming assets of $ 81,270 (in thousands), net charge-offs of $ 3,973 (in thousands), and total allowance for credit losses coverage of 1.05. The company also repurchased $50 million of common stock, raised the quarterly common dividend to $0.26 per share, and reported preliminary Common Equity Tier 1 of 13.0%.
Management, verbatim
Our third quarter results reflect key strategic actions that simplify our balance sheet, reduce risk, and strengthen future operating performance. We completed the acquisition of Peach State Bank on August 1, the sale of our Navitas equipment finance business on September 1, and the restructuring of our investment portfolio in early September.
Lynn Harton, Chairman and CEO
The actions completed in the third quarter allow us to focus on growing the core banking business within our outstanding Southeast footprint. We believe these actions, including our strong liquidity and capital, position us well for long-term success.
Lynn Harton, Chairman and CEO
Not in the filing
stated, not guessed- Forward guidance was not provided.
- Prior outlook was not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A total debt figure was not reported.
- Reportable segment revenue was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.