United Community Banks, Inc. · NYSE:UCB
United Community Banks — Merger or Acquisition (June 2017)
10 slides from United Community Banks's merger presentation, Jun 27, 2017
Slide 1: Acquisition of Four Oaks Fincorp, Inc.
Acquisition of Four Oaks Fincorp, Inc. ► Expands franchise footprint into attractive Raleigh, NC MSA ► Partnership with 105-year-old community bank with significant operations in North Carolina’s fastest-growing MSA; consistent with United growth strategy ► Strategically and financially attractive c
Slide 2: Disclosures
Disclosures CAUTIONARY STATEMENT This investor presentation may contain forward-looking statements, as defined by federal securities laws, including statements about United and its financial outlook and business environment. These statements are based on current expectations and are provided to assi
Slide 3: Transaction Overview
Transaction Overview ► 105-year-old community bank with 14 banking offices, including 12 in the high-growth Raleigh MSA ► Entry into attractive markets and substantially increases our North Carolina Strategic Rationale franchise to approximately $2.0 billion in assets with 33 banking offices ► Conti
Slide 4: Four Oaks – 105 Years of Local Service
Four Oaks – 105 Years of Local Service ► Partnering with a 105-year-old community bank located in North Carolina’s fastest growing market ► 10 branches and 2 LPOs in Raleigh MSA and a branch in Dunn and Pro Forma Wallace, NC Total Assets: $737mm $11.9bn ► Locally focused franchise ranked #2 among lo
Slide 5: Key Assumptions
Key Assumptions ► Conservative $19 million gross credit mark, or 3.75% of loans ► $4.8 million pretax benefit from interest rate discount on trust preferred Purchase Accounting securities ► $6.8 million core deposit intangible ► Other net pretax marks (negative to equity) of $1.5 million ► $8.4 mill
Slide 6: Transaction Terms
Transaction Terms ► Consideration: Approximately 90% stock or .6178 shares of United and 10% cash or $1.90 for each share of Four Oaks ► Implied Transaction Value: $18.26 per share or $124 million in aggregate based on United’s closing price on June 23, 2017 of $26.48 ► Implied Price-to-Tangible Boo
Slide 7: Raleigh Market and Growth Opportunities
Raleigh Market and Growth Opportunities Market disruption creates opportunity: ► Four Oaks is one of the most established banks Of the 15 operating banks or bank holding in NC and the Raleigh MSA, with a 105-year companies headquartered in metro Raleigh a operating history, a strong core deposit dec
Slide 8: Focused on High-Growth MSAs in the Southeast
Focused on High-Growth MSAs in the Southeast Top 10 Fastest Growing MSAs in the Southeast 2017 - 2022 Proj. 2017 2022 Proj. Median (Projected) Population Growth Population Household Income Myrtle Beach-Conway-North Myrtle Beach, SC-NC 9.80% 449,541 $48,570 Cape Coral-Fort Myers, FL 8.71% 721,068 $53
Slide 9: Franchise Highlights
Franchise Highlights Year Established 1950 1912 Total Assets $11.1bn $737mm Banking Offices 142 14 Cost of Funds 0.19% 0.58% TCE Ratio 8.96% 9.44% Net Interest Margin 3.45% 3.92% NPAs/Assets ex. TDRs 0.23% 0.82% Loans/Deposits 79.58% 91.60% ► Four Oaks aligns financially with the United franchise an
Slide 10: Exhibit – Pro Forma Loan and Deposit Mix
Exhibit – Pro Forma Loan and Deposit Mix United Four Oaks Combined Other C&I ADC Other Other ADC 11% 4% 12% 13% ADC 10% 13% 18% Loans C&I C&I 15% 14% 1-4 1-4 26% 26% Other CRE 22% 1-4 Other CRE Other CRE 25% 14% 15% Owner Owner Owner CRE CRE CRE 22% 18% 22% $7.2bn $514mm $7.7bn Jumbo CD 4% Jumbo CD
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