United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q4 2015 Earnings Presentation
28 slides from United Community Banks's earnings presentation, Jan 20, 2016
Slide 1: Fourth Quarter 2015 Investor Presentation
UNITED COMMUNITY BANKS, INC. FOURTH QUARTER 2O15 INVESTOR PRESENTATION United Fees COMMUNITY BANKS, INC?
Slide 2: Disclosures
Disclosures CAUTIONARY STATEMENT This investor presentation may contain forward-looking efficiency ratio, operating dividend payout ratio, core fee statements, as defined by federal securities laws, revenue, core operating expense, core earnings, tangible including statements about United’s financia
Slide 3: Fourth Quarter 2015 Highlights
Fourth Quarter 2015 Highlights (in millions) 4Q15 3Q15 4Q14 Net Income Operating(1) $ 23.8 $ 21.7 $ 18.2 ($ in millions) GAAP 18.2 17.9 18.2 EPS Operating(1) .33 .33 .30 GAAP .25 .27 .30 ROA Operating(1) .99 % 1.00% .96% GAAP .76 .82 .96 ROTCE Operating(1) 10.87 10.29 9.74 ROCE GAAP 7.02 7.85 9.60 I
Slide 4: Fourth Quarter 2015 Highlights
Fourth Quarter 2015 Highlights Improving Quarterly Results ► Growth in Many Sectors of the Portfolio ● Loan growth, excluding healthcare sale and acquisitions, of $162 million, or 11% annualized, Loan Growth from 3Q15 and $444 million year-to-date, or 10% ● Strong loan production of $590 million vs.
Slide 5: Core Earnings, Fee Revenue, and Operating Expenses
Trends Core Earnings, Fee Revenue, and Operating Expenses $80 Core Earnings $74.0 $38.3 Million $70 $65.7 $60 $61.3 Up $2.9 million from 3Q15 $58.3 $57.6 $56.5 and $50 Up $7.5 million from 4Q14 Millions $48.8 $45.1 $40 $42.1 $42.2 $38.3 $33.4 $35.4 Net Interest Revenue $30 $30.8 $30.5 Core Operating
Slide 6: Key Drivers of Net Interest Revenue / Margin
Key Drivers of Net Interest Revenue / Margin Net Interest Revenue & Margin Impacted By $75 $74.0 $70 ►Full quarter NET INTEREST REVENUE $65 $65.7 impact of $60 $61.3 3.50% Palmetto’s loans Millions $58.3 $57.6 and historically $55 3.31% 3.31% 3.30% 3.34% lower cost of 3.26% deposits $50 3.25% $45 ►C
Slide 7: Balance Sheet Growth: New Loans Funded and Advances
Balance Sheet Growth New Loans Funded and Advances(1) $ in millions New Loans Funded and Advances New Loans Funded and Advances by Market $600 $590.0 Variance-Incr(Decr) 4Q15 3Q15 4Q14 3Q15 4Q14 $550 Atlanta $ 94.7 $ 86.7 $ 90.4 $ 8.0 $ 4.3 $500 Coastal Georgia 59.2 28.2 34.0 31.0 25.2 N. Georgia 61
Slide 8: Balance Sheet Growth: Loan Mix
Balance Sheet Growth Loan Mix $6.00 Commercial construction $6.00 Commercial Income producing commercial real estate $5.00 $4.67 Owner occupied $4.33 commercial real estate $4.11 $4.18 Commercial & industrial Billions $4.00 Indirect auto $3.00 Residential HELOC Retail $2.00 Residential mortgage $1.0
Slide 9: Balance Sheet Growth: Customer Deposit Mix
Balance Sheet Growth Customer Deposit Mix $8.00 $7.53 Public funds Time & Public $7.00 $5.92 $5.90 $6.00 $5.71 $5.78 $5.00 Time (customer) Billions $4.00 Core Transaction $3.00 Interest bearing core transaction $2.00 $1.00 Non-interest bearing core transaction - 2011 2012 2013 2014 2015 Deposits Cor
Slide 10: Credit Quality
Credit Quality $ in millions 4Q15 3Q15 2Q15 1Q15 4Q14 Net Charge-offs $ 1.3 $ 1.4 $ 1.0 $ 2.6 $ 2.5 as % of Average Loans 0.09 % 0.10 % 0.08 % 0.22 % 0.22 % Allowance for Loan Losses $ 68.4 $ 69.1 $ 70.1 $ 70.0 $ 71.6 as % of Total Loans 1.14 % 1.15 % 1.36 % 1.46 % 1.53 % as % of Total Loans, Exclud
Slide 11: Operating Earnings per Share and Operating Return on Assets
Operating Earnings per Share and Operating Return on Assets Operating Earnings per Share(1) Operating Return on Assets(1) $.34 1.20% $.33 $.33 $.32 $.32 1.00% 1.00% 1.00% .99% .96% .94% $.30 $.30 $.29 .80% $.28 $.26 .60% $.24 .40% $.22 .20% $.20 $.18 .00% 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15
Slide 12: Capital Ratios
Capital Ratios(1) Holding Company Well-Cap 4Q15 (2) 3Q15 2Q15 1Q15 4Q14 Tier I Risk-Based Capital 8.0% 11.5% 11.4% 11.9% 11.5% 12.1% Total Risk-Based Capital 10.0 12.5 12.5 13.1 12.8 13.3 Leverage 5.0 8.3 9.1 9.1 8.7 8.7 Tier I Common Risk-Based 6.5 11.5 11.4 11.9 11.5 11.1 Capital Tangible Common E
Slide 13: Strategic Principles
Strategic Principles Leverage Our Strengths ► Community bank service with large bank resources ► Strong local leadership and senior management ► Combination of growing metro markets legacy markets with high deposit market share ► Consistent and attractive culture ► Class leading customer satisfactio
Slide 14: United Acquisition of MoneyTree Corporation / FNB
United Acquisition of MoneyTree Corporation / FNB Date Closed: May 1, 2015 Conversion Completed: July 2015 Pricing Summary Aggregate Deal Value: $52 million merged with Price Per Share: $63.59 Price / 2014 EPS: 19.9x Price / TBV: 1.4x Consideration Mix: 80% Stock - 2.36 million shares issued 20% Cas
Slide 15: United Acquisition of Palmetto Bancshares
United Acquisition of Palmetto Bancshares Date Closed: September 1, 2015 Planned Conversion: February 2016 Pricing Summary Aggregate Deal Value: $241 million merged with Price Per Share: $18.53 Price / 2016 EPS: 19.5x Price / TBV: 1.8x Consideration Mix: 70% Stock - 8.70 million shares issued 30% Ca
Slide 16: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands 4Q15 3Q15 2Q15 1Q15 4Q14 Net Income Operating net income $ 23,800 $ 21,726 $ 19,989 $ 17,670 $ 18,247 Merger-related and other charges (9,078) (5,744) (3,173) - - Tax benefit on merger-related and other charges 3,486 1,905 997 - - Net Income (GAAP) $ 18,
Slide 17: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands 4Q15 3Q15 2Q15 1Q15 4Q14 Core Fee Revenue Core fee revenue $ 20,756 $ 18,448 $ 17,220 $ 15,120 $ 14,553 Securities gains, net 378 325 13 1,539 208 Losses on prepayment of borrow ings - (256) - (1,038) - Mark to market on deferred compensation plan assets
Slide 18: Fourth Quarter Exhibits
UNITED COMMUNITY BANKS, INC. FOURTH QUARTER 2015 EXHIBITS January 20, 2016 ucbi.com | 18 ucbi.com | 18
Slide 19: Current Footprint
Current Footprint Key Statistics as of 12/31/15 ► Headquartered in Blairsville, Georgia ► Four state regional community bank: GA, NC, SC and TN ► 134 Locations ► Founded in 1950 ► Largest community bank headquartered in Georgia and one of the largest in the Southeast ► 1,932 employees ► $9.6 billion
Slide 20: Business and Operating Model
Business and Operating Model Service is Point of Differentiation ► #1 in customer satisfaction according to Customer Service Profiles, the banking industry’s leader in customer research and improvement ► #1 in Southeast in customer satisfaction by national research company ► Golden rule of banking –
Slide 21: Experienced Proven Leadership
Experienced Proven Leadership • Over 40 years in banking • Over 30 years in banking • Over 35 years in banking • Led company from $42 • Responsible for overall • Responsible for million in assets in 1989 to banking, credit and accounting, finance and $9.6 billion today operations reporting activitie
Slide 22: Market Share Opportunities
Market Share Opportunities $ in billions Excellent Growth Opportunities Market Deposit Deposits United Deposits Banks Offices Share Rank (1) (2) (3) (1) (1) North Georgia $ 6.6 $ 2.2 9 22 37 % 1 Atlanta, Georgia 60.8 2.4 10 36 4 6 Gainesville, Georgia 3.0 .3 1 5 12 4 Coastal Georgia 8.0 .3 2 7 3 9 W
Slide 23: Market Share Demographics
Market Share Demographics Key MSA Growth Markets Projected Change 2016 - 2021 Savannah, GA 6.91% Gainesville, GA 6.49% Atlanta, GA 6.38% Greenville, SC 5.70% Asheville, NC 4.96% Cleveland, TN 4.23% Knoxville, TN 3.35% 0% 1% 2% 3% 4% 5% 6% 7% 8% State Population Growth Projected Change 2016 – 2021 So
Slide 24: Liquidity
Liquidity $ in millions Capacity 4Q15 3Q15 4Q14 vs 3Q15 vs 4Q14 WHOLESALE BORROWINGS Brokered Deposits (1) $ 615 $ 347 $ 517 $ 425 $ (170) $ (78) FHLB 550 430 200 270 230 160 Wholesale Holding Company LOC 40 - - - - - Fed Funds 515 - 5 - (5) - Borrowings Other Wholesale - 17 14 6 3 11 Total $ 1,720
Slide 25: Lending & Credit Environment
Lending & Credit Environment $ in millions Regional Credit Review – Standard Underwriting •Legal Lending Limit $ 242 • Centralized underwriting and approval process •House Lending Limit 28 • Segregated work-out teams • Highly skilled ORE disposition group •Project Lending Limit 17 • Seasoned regiona
Slide 26: Performing Classified Loans
Performing Classified Loans $ in millions $150 $136 $128 $130 $122 $128 $116 $110 4Q14 1Q15 2Q15 3Q15 4Q15 By Category 4Q14 1Q15 2Q15 3Q15 4Q15 Commercial & Industrial $ 8 $ 7 $ 6 $ 6 $ 6 Ow ner-Occupied CRE 46 44 40 42 40 Total Commercial & Industrial 54 51 46 48 46 Income-Producing CRE 20 20 19 30
Slide 27: TDRs
TDRs $ in millions LOAN TYPE Accruing Non-Accruing Total TDRs (1) 4Q15 3Q15 4Q14 4Q15 3Q15 4Q14 4Q15 3Q15 4Q14 Commercial & Industrial $ 2.8 $ 3.5 $ 25.3 $ 0.1 $ - $ 1.0 $ 2.9 $ 3.5 $ 26.3 Ow ner-Occupied CRE 30.8 31.6 17.4 1.3 1.2 0.5 32.1 32.8 17.9 Income-Producing CRE 15.4 14.1 2.7 .2 .3 .1 15.6
Slide 28: Lending & Credit Environment
Lending & Credit Environment Commercial Construction Mix Commercial Real Estate Mix in millions in millions % of Outstanding Outstanding Category Owner- Income- % of Multi-Residential $ 84 24.6 % Occupied Producing Total Category Land Develop - Vacant (Improved) 56 16.4 Office Buildings $ 375 $ 208
United Community Banks — Q4 2015 Earnings Presentation on 6ix