United Community Banks, Inc. Announces Preferred Stock Redemption
United Community Banks, Inc. Announces Redemption of Shares
United Community Banks, Inc. (NYSE: UCB) is set to execute a significant strategic move by redeeming all outstanding shares of its 6.875% Series I Non-Cumulative Perpetual Preferred Stock. This decision reflects the company's proactive approach to managing its capital structure effectively.
Redemption Details
The redemption action will take place on a specified date, marking a pivotal moment for investors and the company alike. The cash redemption price is established at $25,000 per share of the Preferred Stock, translating to $25 per Depositary Share.
Understanding the Redemption Price
It’s essential to note that this Redemption Price does not encompass any previously declared dividend payments. These payments will be disbursed on the redemption date to shareholders recorded on the relevant date for such dividends.
Continuing Relationships with Shareholders
On the designated redemption day, the depositary will redeem 3,661,650 depositary shares, each representing a fractional interest in the Preferred Stock, for a proportional amount consistent with the Redemption Price per share.
End of Rights and Claims
From the redemption date onward, there will be an official cessation of dividend accrual for the Preferred Stock. Holders' rights pertaining to the shares and the Depositary Shares will become null and void, except for the right to receive their respective redemption amounts, completing the transaction in an organized manner.
Financial Strength and Community Commitment
United Community Banks, Inc. operates with a robust financial foundation, boasting assets valued at $28.1 billion and managing 200 branches across various states. This expansive footprint signifies their commitment to enhancing community financial health through a comprehensive suite of banking and mortgage services.
Acknowledging Achievements
The company has gained notable recognition, being awarded multiple times by J.D. Power for customer satisfaction in the Southeast. In 2025, it was named the most trusted bank in the region, reinforcing its reputation as a reliable financial partner.
Services Offered by United Community Banks, Inc.
United Community offers an array of services, including banking, mortgage, and wealth management solutions to meet diverse customer needs. Their nationally recognized lending franchise extends support to businesses nationwide, further solidifying their position in the financial sector.
Working Environment Recognition
For eight consecutive years, American Banker has highlighted United as one of the 'Best Banks to Work For,' showcasing its strong commitment to fostering a positive work environment and community hand-in-hand.
Conclusion
The planned redemption of the Preferred Stock marks an intentional step towards reinforcing United Community Banks' capital management strategy. With a strong performance history and a customer-centric approach, the company is poised for continued success.
Frequently Asked Questions
What does the stock redemption entail for current shareholders?
The stock redemption means that shareholders will receive a cash payment for their shares at the specified Redemption Price.
When is the redemption date for the Preferred Stock?
The redemption date is set for a particular day, during which the cash payments will be processed.
What is the significance of the Redemption Price?
The Redemption Price is critical as it determines the amount shareholders will receive per share being redeemed.
How does this affect the company's capital management?
This redemption reflects a strategic move by the company to better manage its capital structure, enhancing financial stability.
Where can I learn more about United Community Banks, Inc.?
Additional information can be accessed through the company's official website or by contacting their financial department directly.
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