United Community Banks, Inc. (NYSE: UCB) reported a net loss of $139.7 million for the third quarter ended September 30, 2026, driven by strategic actions that simplified its balance sheet. Adjusting for these items, operating net income reached $93.7 million, an 8% increase from the second quarter. Chairman and CEO Lynn Harton stated that the results reflect key strategic actions designed to reduce risk and strengthen future operating performance.
The bank completed the sale of its Navitas equipment finance business on September 1 for $2.0 billion in cash proceeds, a 7% premium to par. Concurrently, the company restructured its investment portfolio in early September, selling long-dated, low-yielding securities with an amortized cost basis of $2.5 billion. This repositioning generated $2.1 billion in cash proceeds and reclassified $2.2 billion in held-to-maturity securities to available-for-sale designation. The combined proceeds from these transactions were redeployed into higher-yielding securities and used to pay down borrowings.
United also completed the acquisition of Peach State Bancshares on August 1. The transaction increased density in the Southeast market and contributed $520 million in loans and $678 million in deposits at the time of acquisition. Excluding the impacts of Peach State and Navitas, core loan growth was 9.8% annualized, or $444 million, while core customer deposit growth was 8.0% annualized, or $473 million.
Financial metrics for the quarter showed a GAAP earnings per share of $(1.16), compared to an operating basis of $0.77. The second quarter of 2026 reported GAAP earnings per share of $0.95 and operating earnings per share of $0.71. Total revenue was $(12.0) million on a GAAP basis due to the strategic actions, but operating revenue was $292 million, up from $279 million in the prior quarter. The net interest margin stood at 3.68%, stable from the second quarter and up 10 basis points year-over-year.
The provision for credit losses totaled $10.0 million, including net charge-offs of $4.0 million, or 0.09% of loans. Allowance for credit losses coverage was 1.05% of total loans, up one basis point from June 30, 2026. Noninterest expense decreased by $3.3 million on an operating basis compared to the second quarter. The operating efficiency ratio improved to 53.1% from 56.7% in the second quarter.
The board repurchased 1.395 million common shares at an average price of $35.81 per share for an aggregate of $50 million during the third quarter. An additional $100 million share repurchase authorization was approved through the end of 2027, bringing the total outstanding authorization to $113 million. The quarterly common dividend increased to $0.26 per share, a 4% year-over-year increase.
For the nine months ended September 30, 2026, net income was $60.2 million, lowered by third-quarter strategic actions. Operating net income for the period was $265 million, compared to $249 million in the same period of 2025. Operating return on tangible common equity rose to 13.3% from 12.6% in 2025.