United Community Banks' stock plummeted 5.65% during intraday trading on Tuesday, following the simultaneous release of its first-quarter earnings and the announcement of an agreement to acquire Peach State Bancshares.

The bank reported first-quarter net income of $84.3 million, up 18% from the prior year, with revenue rising 12% to $276.5 million, beating analyst estimates. Key drivers included a net interest margin that widened by 29 basis points to 3.65%, lower credit loss provisions, and solid loan and deposit growth.

Concurrently, United Community announced a definitive merger agreement to acquire Peach State Bancshares, the parent of Peach State Bank & Trust, in a cash and stock transaction valued at approximately $100.8 million. While the deal is expected to be accretive to earnings per share in 2027, the market reaction suggests investor concerns regarding integration risks, potential dilution from the stock component, or the strategic fit of the acquisition.