United Community Banks, Inc. · NYSE:UCB
United Community Banks — Merger or Acquisition (April 2016)
14 slides from United Community Banks's merger presentation, Apr 4, 2016
Slide 1: Acquisition of Tidelands Bancshares, Inc.
United Community Banks, Inc. Acquisition of Tidelands Bancshares, Inc. → Strategic purchase completes a two-step plan, accelerating growth in attractive Coastal South Carolina markets → Additional organic growth from lift-out of an experienced lending team INVESTOR PRESENTATION → Compelling acquisit
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements usually use words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will
Slide 3: Forward-Looking Statements – Participants in the Merger Solicitation
Forward-Looking Statements Participants in the Merger Solicitation United and Tidelands, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Tidelands in r
Slide 4: Tidelands Bancshares, Inc.
Tidelands Bancshares, Inc. Combined Branch Map Company Overview Headquarters Mt. Pleasant, SC INTERSTATE 74 Established 2003 Knoxville Charleston (4) Nashville Branches (7) Myrtle Beach (2) INTERSTATE North Carolina 40 INTERSTATE Charlotte Hilton Head (1) 26 Tennessee INTERSTATE Ticker (OTC Pink) TD
Slide 5: UCBI’s Growth Strategy – Two-Step Plan
UCBI’s Growth Strategy – Two-Step Plan Executing a Two-Step Growth Strategy in Charleston / Coastal SC Markets • In 3Q 2015, UCBI successfully executed a lift-out of a team of experienced local bankers Well known Charleston bankers with established customer relationships Well known to UCBI with a st
Slide 6: Transaction Rationale
Transaction Rationale • Consistent with UCBI’s Southeastern expansion strategy • Significantly accelerates UCBI’s Coastal South Carolina expansion and leverages existing lift-out team of experienced bankers and in-market resources − The lift-out team enhances the Tidelands franchise by providing sen
Slide 7: Transaction Structure and Pro Forma Results
Transaction Structure and Pro Forma Results • $11.2 million aggregate transaction value; 100% cash consideration Transaction Value / − $2.2 million value to common, or $0.52 per common share in cash Consideration − $9.0 million to redeem TARP, which represents a 56% discount • Target cost savings: a
Slide 8: Estimated EPS Accretion Summary
Estimated EPS Accretion Summary The transaction is expected to be $0.09 to $0.10 accretive to EPS in 2017 UCBI Growth and EPS Accretion 2017 EPS Accretion Range ($ millions) $0.09 $0.10 Key Assumptions Tidelands standalone pre-tax loss $(1.2) $(1.2) Management's estimate Merger cost savings 4.2 5.2
Slide 9: Credit / Loan Portfolio Review Summary
Credit / Loan Portfolio Review Summary • Comprehensive bank-wide due diligence Tidelands Loan Portfolio (1) Consumer & • Achieved high visibility on Tidelands’ loan C&I Other portfolio and credit quality Construction & 7% 1% 1-4 Family Development 31% 13% • Formal reviews by three independent third
Slide 10: UCBI’s Growth Strategy – Coastal Markets
UCBI’s Growth Strategy – Coastal Markets • Tidelands’ markets are in the top 10 fastest growing in South Carolina the U.S. Total Total Deposits in Market Projected Median Market Share Population Population HH Rank Institution (ST) Branches ($000) (%) Change Change Income 1 Wells Fargo & Co. (CA) 150
Slide 11: UCBI’s Growth Strategy – Coastal Markets
UCBI’s Growth Strategy – Coastal Markets Myrtle Beach-Conway-North Myrtle Beach MSA Hilton Head Island-Bluffton-Beaufort, SC Total Total Total Total Deposits in Market Deposits in Market Market Share Market Share Rank Institution (ST) Branches ($000) (%) Rank Institution (ST) Branches ($000) (%) 1 B
Slide 12: UCBI’s Growth Strategy and Positioning for $10 Billion
UCBI’s Growth Strategy and Positioning for $10 Billion • Our growth strategy over the past several years has been influenced by two key factors 1) Given a slower than normal recovery, traditional small business and retail loan growth would likely be slow, and the need to develop additional “specialt
Slide 13: Appendix
United COMMUNITY BANKS, INC* Appendix
Slide 14: Tidelands Bancshares – Historical Financial Summary
Tidelands Bancshares – Historical Financial Summary Dollar Values in Millions For the Year Ended, 2012 2013 2014 2015 Balance Sheet Total Assets $527 $487 $476 $466 Net Loans 333 325 313 320 Deposits 451 437 428 421 Gross Loans / Deposits 75% 76% 74% 77% Capital Total Equity $10 $5 $5 $2 Total Commo
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