United Community Banks, Inc. · NYSE:UCB
United Community Banks — Investor Presentation (February 2003)
39 slides from United Community Banks's investor presentation, Feb 26, 2003
Slide 1: Investor Presentation February 2003
Investor Presentation February 2003 United Community Banks, Inc. Jimmy Tallent, President and Chief Executive Officer United Community Banks, Inc. For further information please contact: Rex Schuette, Chief Financial Officer Office: (706) 781-2265, Fax: (706) 745-9046 Email: rex_schuette@ucbi.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance
Slide 3: United Community Banks, Inc. agenda
United Community Banks, Inc. Who We Are Our Performance Record Our Strategies for Success Why Invest in United Community Banks 3
Slide 4: United at a Glance
3rd largest Georgia bank holding company $3.2 billion in assets Nasdaq symbol UCBI-6 analysts Market capitalization $510 million Unique footprint History of growth and profitability Management team depth United at a Glance Who We Are - Our Company 4
Slide 5: Community-Focused Model
Seventeen community banks Local bank presidents and boards High quality, personal customer service Best place to bank and work Family of 1100 employees Community-Focused Model Who We Are - Our Company 9
Slide 6: Experienced Management Team
Jimmy Tallent, President and CEO 1984 Harold Brewer, COO (Brintech, Inc.) 2000 Rex Schuette, CFO (State Street Corp.) 2001 Guy Freeman, Banking 1994 Tom Gilliland, General Counsel and Secretary 1992 Jim Campbell, Retail Banking (Trans Financial, Inc.) 1999 Ray Williams, Risk Management (Bank South C
Slide 7: Meeting Our Customers' Needs
Core community banking Simple block-and-tackle approach Real estate lending to home buyers and small businesses Customer service Product line, convenience, and technology Meeting Our Customers' Needs Who We Are - Our Company 13
Slide 8: Unique Footprint
Key: Banking office Who We Are - Our Franchise 8 Atlanta Nashville Chattanooga Knoxville Asheville Unique Footprint
Slide 9: A Leader in Our Traditional Markets
Market* North Georgia Western North Carolina Metro Atlanta Offices 24 14 15 Share 23 % 14 2 Rank 1 3 10 * Includes markets where UCBI has offices; deposit data as of 6/02 Counties 12 9 10 A Leader in Our Traditional Markets Who We Are - Our Franchise 17
Slide 10: North Georgia
North Georgia Who We Are - Our Franchise 19 Atlanta Hiawassee Rome
Slide 11: Western North Carolina
Western North Carolina Who We Are - Our Franchise 21 Cherokee Brevard
Slide 12: Metro Atlanta
Metro Atlanta Who We Are - Our Franchise 23 Atlanta
Slide 13: Five-Year CAGR - Operating Results
Five-Year CAGR Assets Loans Deposits Total Revenue 18% 19 15 18 Our Performance Record - Operating Results 25
Slide 14: Sustainable Double-Digit EPS Growth
1998 1999 2000 2001 2002 EPS 0.77 0.84 1.03 1.3 1.48 (Excludes merger-related charges) 16% - 5 Year CAGR $1.50 ..50 Sustainable Double-Digit EPS Growth Our Performance Record - Operating Results 27 1.00
Slide 15: Continuing Growth - Year 2002
($ in millions, except per share data) 2002 vs. 2001 Loans, as of Year End $2,381.8 19% Total Revenue $143.4 12 Total Operating Expenses 91.1 9 Net Income 32.8 16 Diluted EPS 1.48 14 Continuing Growth - Year 2002 Our Performance Record - Operating Results 29
Slide 16: Continuing Strong Profitability in 2002
2002 2001 ROE 16.54 % 16.73 % ROA 1.11 1.10 Net Interest Margin 4.33 4.51 Efficiency Ratio 60.66 62.52 NPAs/Assets .25 .35 Continuing Strong Profitability in 2002 Our Performance Record - Operating Results 31
Slide 17: Loan Mix (December 2002)
Loan Mix (December 2002 - Products) Loans ($ in millions) (88% secured by real estate) Commercial Commercial RE RE Construction Residential Mortgage Installment 0.06 0.29 0.22 0.37 0.06 Our Performance Record - Lending and Credit Quality 17
Slide 18: Strong Growth in Metro Atlanta
N. Georgia Metro Atlanta North Carolina 0.59 0.17 0.24 Strong Growth in Metro Atlanta 18 Our Performance Record - Lending and Credit Quality
Slide 19: Lending Limits
Legal lending limit $ 42 House lending limit 15 Top 25 relationships Largest loan 13 Total balance (8% of total loans) 195 Regional credit review Lending Limits (in millions) 19 Our Performance Record - Lending and Credit Quality
Slide 20: Deposit Mix (December 2002)
Deposit Mix (December 2002 - Products) Deposits ($ in millions) NOW Demand MMDA & Savings Time < $100,000 Time > $100,000 Brokered CDs 0.27 0.12 0.08 0.3 0.16 0.07 Our Performance Record - Deposits 20
Slide 21: Strong Credit Quality
Strong Credit Quality Net Charge-Offs ($ millions) As a Percentage of Average Loans - -National Peer Average Non-Performing Assets ($ in millions) As Percent of Total Assets - -National Peer Average 1999 2000 2001 2002 $2.1 $3.0 $4.6 $3.1 ..15% .18% .25% .14% .22% .21% .30% .40%* $3.7 $6.7 $9.7 $8.0
Slide 22: Allowance for Loan Losses
Allowance for Loan Losses 1999 2000 2001 2002 % of Loansxxxxxx 0.0128 0.0138 0.0135 0.013 All 20 24.7 27.1 30.3 Our Performance Record - Lending and Credit Quality Allowance ($ millions) 1999 2000 2001 $20.0 $24.7 $27.1 2002 $30.9 43 1.25 1.00 1.50% 1.25
Slide 23: Commitment to Our Shareholders
Sustainable double-digit EPS growth Return on equity of 16% to 18% Expand franchise and shareholder value Commitment to Our Shareholders Our Strategies for Success - Growth Objectives 23
Slide 24: Executing Our Balanced Plan
Organic growth De novo offices Selective mergers Continued expense management discipline Our Strategies for Success - Growth Objectives Executing Our Balanced Plan 24
Slide 25: Expanding Footprint
Key: Banking office Our Strategies for Success - Growth Objectives Expanding Footprint 9 11 25
Slide 26: First Central Bank - Lenoir City, TN
$29.9 million transaction value - 70% stock, 30% cash 2.30 times book value Close by the end of the 1st quarter 2003 Slightly accretive to GAAP earnings per share in 2003 12 years old - $150 million in assets, $135 million in deposits 8 offices in attractive Tennessee markets including 5 in the high
Slide 27: Eastern Tennessee
Eastern Tennessee 27 Our Strategies for Success - Announced Mergers
Slide 28: First Georgia Bank - Brunswick, GA
$42.6 million transaction value - 70% stock, 30% cash 2.04 times book value Close during the 2nd quarter 2003 Slightly accretive to GAAP earnings per share in 2003 19 years old - $260 million in assets, $225 million in deposits 6 banking offices serving Glynn County and the Golden Isles, as well as
Slide 29: Coastal Georgia
Coastal Georgia 29 Our Strategies for Success - Announced Mergers
Slide 30: Asset Size Growth from Early Partnerships
Asset Size Growth from Early Partnerships Our Strategies for Success - Early Mergers 30 Affiliates Date Acq. 12/02 North Carolina Mar-90 $ 55 $ 763 N. GA - Blue Ridge Feb-92 52 278 Towns Oct-92 20 128 White Aug-95 71 185 Habersham Sep-96 33 138 Rabun Sep-97 72 158 N. GA - Gilmer Jan-98 23 117
Slide 31: Staying Focused on Our Customers
Extensive customer service survey and benchmark study in 4th quarter 2002 Key indicators of customer satisfaction and loyalty High marks - overall 9.45 out of a possible 10.00 95 percent of respondents had already or would likely recommend United to others Bottom line - we are on the right track Con
Slide 32: Well-Positioned for Growth
Early 2002 - strengthened key staff and infrastructure Building customer relationships Low incremental investment to achieve the next level of growth A $3 billion company with the resources of a much larger organization Well-Positioned for Growth Our Strategies for Success - Key Investments 32
Slide 33: Performance Expectations: EPS Estimates
EPS Estimates - Analyst Consensus 2003 1.66 1.68 1.65 6 Why Invest in United Community Banks- Performance Expectations Quarter / Year Consensus EPS # of Estimates High Low Q1-03 $ .39 $ .40 $ .38 5 United's guidance: Net interest margin in low 4% range Loan growth of 10% to 14% EPS growth of 12% to
Slide 34: Attractive Investment
Unique and expanding footprint in economically vibrant regions Experienced management team with deep knowledge of their markets Strong historical financial performance Excellent prospects for growth and financial performance Attractive Investment Why Invest in United Community Banks - Investment Sum
Slide 35: High Return On Common Equity
1998 1999 2000 2001 2002 Actual 0.1491 0.1442 0.1506 0.1673 0.1654 (Excludes merger-related charges and FAS 115) 18% 16 14 12 10 High Return On Common Equity Exhibit E1
Slide 36: Asset Size Growth from Recent Partnerships
Affiliates Date Acq. 12/02 West GA Nov-01 $ 85 $ 145 Metro Jul-00 153 225 Dawson Jul-00 119 129 Rome Aug-99 108 194 Adairsville Mar-99 38 57 Asset Size Growth from Recent Partnerships E2 Exhibit
Slide 37: Shareholder Information
Shareholder Information Share Price (As of 2/21/03) $ 24.00 2002 Trading Range (52-week range) 20 - 30 Book Value Per Share (As of 12/31/02) 10.34 Annual Dividend (Payout ratio of 18% - 2003) .30 Market Capitalization ($ million) 510 Shares Outstanding (As of 12/31/02- million) 21.3 Average Daily Vo
Slide 38: Analyst Coverage and Market Makers
Analyst Coverage and Market Makers McConnell, Budd & Romano (Outperform, 2/14/03) Keefe, Bruyette & Woods (Outperform, 1/29/03) Stephens, Inc (Overweight, 1/28/03) Sandler O'Neill & Partners, LP (Maintain, 1/28/03) SunTrust Robinson-Humphrey (Equal Weight, 1/28/03) FTN Financial Securities Corp. (Ne
Slide 39: Returning Value to Our Shareholders
Nasdaq - Bank Index Nasdaq - Composite UCBI Returning Value to Our Shareholders E5 Exhibit
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