UCB Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 9:20 AM CDT 25 min read

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Tuesday, April 21, 2026, astatine 9 a.m. ET

• Chairman & Chief Executive Officer — Herbert Harton

• Chief Financial Officer — Jefferson Harralson

• President, Commercial Specialty Banking — Richard Bradshaw

• Chief Credit Officer — Robert Edwards

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Herbert Harton: Good morning, and convey you for joining our telephone today. We've got a batch to cover. I'm going to commencement with our quarterly net update, and past we volition adjacent with the details of our acquisition of Peach State Bank headquartered successful Gainesville, Georgia. We had a large commencement to 2026. For the archetypal quarter, we realized nett income of a small implicit $84 million, translating into EPS of $0.69. On an operating basis, our EPS was $0.70, representing a 19% summation from the archetypal 4th of 2025. Annualized indebtedness maturation of 4.5% for the 4th and an enlargement of our nett involvement borderline of 3 ground points helped to thrust these results.

Credit besides performed precise good this 4th with full charge-offs of 22 ground points, lone 10 ground points, excluding Navitas. Nonperforming assets arsenic a percent of loans were 50 ground points, down 1 ground constituent from Q1 2025, and peculiar notation successful substandard loans totaled lone 2.9% of full loans, down 2 ground points from Q1 of 2025. Our operating instrumentality connected assets was 122 ground points, an 18 ground constituent betterment year-over-year, and our operating instrumentality connected tangible communal equity was 13.1%. Given our precocious superior levels, we continued to instrumentality superior to shareholders, some via a $0.25 quarterly dividend and the repurchase of $37 cardinal of our communal stock.

We besides announced the volition to redeem our remaining $100 cardinal successful sub indebtedness successful the 2nd quarter, lone 20% of which qualified arsenic Tier 2 capital. Even with the dilution from our repurchase activity, tangible publication worth per stock grew astatine an annualized complaint of astir 6% for the 4th and by 10% year-over-year. We were besides excited to person been recognized by J.D. Power arsenic the top-ranked slope for retail lawsuit restitution successful the Southeast during the quarter. This is the 12th clip the United squad has received this recognition. I'm precise arrogant of the dedication and genuine attraction that our teams crossed the footprint show each day.

It's due to the fact that of them that we are the astir recognized slope for lawsuit restitution successful the Southeast. I'll present crook it implicit to Jefferson to screen our archetypal quarter's show successful much detail.