United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q2 2015 Earnings Presentation
28 slides from United Community Banks's earnings presentation, Jul 22, 2015
Slide 1: Second Quarter 2015 Investor's Presentation
UNITED COMMUNITY BANKS, INC. SECOND QUARTER 2O15S INVESTOR’S PRESENTATION Forbes | 2015 BEST BANKS INC IN AMERICA
Slide 2: Disclosures and Cautionary Statement
ucbi.com | 2 ucbi.com | 2 Disclosures efficiency ratio, operating dividend payout ratio, core fee revenue, core operating expense, core earnings, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk - weighted assets . The most comparable G
Slide 3: Highlights Second Quarter 2015
ucbi.com | 3 Highlights Second Quarter 2015 (in millions) 2Q15 1Q15 2Q14 Net Income ($ in millions) + Operating (1) $ 20.0 $ 17.7 $ 16.4 + GAAP 17.8 17.7 16.4 EPS + Operating (1) .32 .29 .27 GAAP .28 .29 .27 ROA + Operating (1) 1.00% .94% .88% GAAP .89 .94 .88 ROCE + Operating (1) 9.90 9.34 8.99 GAA
Slide 4: Highlights Second Quarter 2015
ucbi.com | 4 Highlights Second Quarter 2015 ucbi.com | 4 IMPROVING QUARTERLY RESULTS Loan Growth ► Growth in Many Sectors ● Loan growth of $142 million, or 12% annualized (excludes FNB - $238 million) ● Loan Production of $518 million vs. $423 million 1Q15 and $357 million year ago Core Transactio n
Slide 5: Net Interest Revenue, Core Operating Expenses and Fee Revenue
ucbi.com | 5 $55.0 $57.0 $58.3 $57.6 $61.3 $40.1 $41.1 $42.1 $42.2 $45.1 $28.8 $30.3 $30.8 $30.5 $33.4 $13.9 $14.4 $14.6 $15.1 $17.2 $10 $20 $30 $40 $50 $60 $70 2Q14 3Q14 4Q14 1Q15 2Q15 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue 2Q15 1Q15 2Q14 Salaries & Employee Ben
Slide 6: Key Drivers of Net Interest Revenue / Margin
ucbi.com | 6 .17% .16% .16% .22% .19% .20% .12% .11% .10% .04% .08% .12% .16% .20% .24% .28% 2Q14 3Q14 4Q14 1Q15 2Q15 $55.0 $57.0 $58.3 $57.6 $61.3 $45 $47 $49 $51 $53 $55 $57 $59 $61 $63 2Q14 3Q14 4Q14 1Q15 2Q15 Key Drivers of Net Interest Revenue / Margin KEY DRIVERS OF NIR NET INTEREST REVENUE &
Slide 7: Balance Sheet Growth – New Loans
ucbi.com | 1 2Q15 1Q15 2Q14 Banks: 2Q15 1Q15 2Q14 Commercial C & I 143.1$ 107.5$ 115.4$ Atlanta 116.9$ 98.0$ 91.0$ Owner Occupied CRE 79.3 54.2 65.6 Coastal Georgia 48.9 43.4 28.5 Income Producing CRE 73.5 68.3 40.8 N. Georgia 66.7 47.0 69.0 Commercial Constr. 4.6 9.5 2.7 North Carolina 27.6 19.6 21
Slide 8: Loan Growth
ucbi.com | 8 Loan Growth $4.11 $4.18 $4.33 $4.67 $5.17 - $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 2011 2012 2013 2014 2Q15 Billions Commercial construction Income producing commercial real estate Owner occupied commercial real estate Commercial & industrial Indirect auto Home
Slide 9: Balance Sheet Growth – Customer Deposit Mix
ucbi.com | 9 Balance Sheet Growth – Customer Deposit Mix $5.92 $5.71 $5.78 $5.90 $6.28 - $.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 2011 2012 2013 2014 2Q15 Billions Public funds Time (customer) Interest bearing core transaction Non-interest bearing core transaction
Slide 10: Credit Quality
ucbi.com | 10 Credit Quality ucbi.com | 10 2Q15 1Q15 4Q14 3Q14 2Q14 Net Charge-offs 1.0$ 2.6$ 2.5$ 3.2$ 4.2$ as % of Average Loans .08 % .22 % .22 % .28 % .38 % Allowance for Loan Losses 70.1$ 70.0$ 71.6$ 71.9$ 73.2$ as % of Total Loans 1.36 % 1.46 % 1.53 % 1.57 % 1.66 % as % of NPLs 373 368 401 384
Slide 11: Operating Earnings per Share and Operating Return on Assets
ucbi.com | 11 Operating Earnings per Share and Operating Return on Assets $.27 $.29 $.30 $.29 $.32 $.18 $.20 $.22 $.24 $.26 $.28 $.30 $.32 $.34 2Q14 3Q14 4Q14 1Q15 2Q15 OPERATING EARNINGS PER SHARE (1) .88% .95% .96% .94% 1.00% .70% .75% .80% .85% .90% .95% 1.00% 2Q14 3Q14 4Q14 1Q15 2Q15 OPERATING R
Slide 12: Capital Ratios
ucbi.com | 12 Capital Ratios (1) ucbi.com | 12 HOLDING COMPANY Well - Cap 2Q15 1Q15 4Q14 3Q14 2Q14 Tier I RBC 6% 11.9% 11.5% 12.1% 12.1% 11.8% Total RBC 10 13.1 12.8 13.3 13.3 13.0 Leverage 5 9.1 8.7 8.7 8.7 8.3 Tier I Common RBC 11.9 11.5 11.1 11.0 10.7 Tangible Comm to Assets 9.8 9.8 9.7 9.8 9.6 T
Slide 13: Strategic Principles
ucbi.com | 13 Strategic Principles ucbi.com | 13 LEVERAGE OUR STRENGTHS ► Community bank service with large bank resources ► Strong local leadership and senior management ► Funding strength in legacy markets ► Consistent and attractive culture ► Class leading customer satisfaction 2015 ► Continue to
Slide 14: United Acquisition of MoneyTree Corporation / FNB
ucbi.com | 14 United Acquisition of MoneyTree Corporation / FNB ucbi.com | 14 ( 1) Including the conversion of the Series C Cumulative Convertible Preferred Stock Data Source: SNL Financial and Company Documents; financial data as of 12/31/14 Founded: 1907 Headquarters: Lenoir City, TN Total Assets:
Slide 15: United Acquisition of Palmetto Bancshares
ucbi.com | 15 United Acquisition of Palmetto Bancshares $ in Thousands ucbi.com | 15 Founded: 1906 Headquarters: Greenville, SC Total Assets: $1,173 million Loans: $836 million Deposits: $967 million Tangible Common Eq. $136 million ROA: 1.0% ROE: 8.3% TCE / TA 11.6% April 22 , 2015 has agreed to me
Slide 16: Non-GAAP Reconciliation Tables
ucbi.com | 16 2Q15 1Q15 4Q14 3Q14 2Q14 CORE FEE REVENUE Core fee revenue 17,220$ 15,120$ 14,553$ 14,419$ 13,938$ Securities gains, net 13 1,539 208 11 4,435 Losses on prepayment of borrowings - (1,038) - - (4,446) Mark to market on deferred compensation plan assets 33 61 62 (18) 216 Fee revenue (GAA
Slide 17: Non-GAAP Reconciliation Tables
ucbi.com | 17 2Q15 1Q15 4Q14 3Q14 2Q14 RETURN ON ASSETS Operating return on assets 1.00 % .94 % .96 % .95 % .88 % Merger-related charges (.11) - - - - Return on Assets (GAAP) .89 % .94 % .96 % .95 % .88 % RETURN ON COMMON EQUITY Operating return on common equity 9.90 % 9.34 % 9.60 % 9.41 % 8.99 % Me
Slide 18: Second Quarter 2015 Exhibits
ucbi.com | 18 UNITED COMMUNITY BANKS, INC. SECOND QUARTER 2015 EXHIBITS July 22, 2015 ucbi.com | 18
Slide 19: Current Footprint
ucbi.com | 19 Current Footprint ucbi.com | 19 Key Statistics as of 6/30/15 ► Headquartered in Blairsville, Georgia ► Four state regional community bank: GA, NC, SC and TN ► 114 Locations ► Founded in 1950 ► Largest community bank headquartered in Georgia and one of the largest in the Southeast ► 1,6
Slide 20: Business and Operating Model
ucbi.com | 20 Business and Operating Model Local CEOs with deep roots in their communities Resources of a $8.2 billion bank Operate in a number of the more demographically attractive U.S. markets Organic growth supported by de novos and selective acquisitions Twenty - eight “community banks” Strateg
Slide 21: Experienced Proven Leadership
ucbi.com | 21 Experienced Proven Leadership Jimmy C. Tallent Chairman & CEO Joined 1984 H. Lynn Harton Board, President & COO Joined 2012 Bill M. Gilbert President of Community Banking Joined 2000 Bradley J. Miller EVP, CRO & General Counsel Joined 2007 • Over 40 years in banking • Led company from
Slide 22: Market Share Opportunities
ucbi.com | 22 Market Share Opportunities ucbi.com | 22 North Georgia $ 6.3 $ 2.3 11 22 35% 1 Atlanta, Georgia 56.3 2.3 10 36 4 6 Gainesville, Georgia 2.8 .4 1 5 12 4 Coastal Georgia 7.1 .3 2 8 5 7 W. North Carolina 11.3 .9 1 19 8 3 E. Tennessee 15.7 .6 2 18 4 5 Greenville, SC (4) 20.5 1.0 1 26 5 7 T
Slide 23: Market Share Demographics
ucbi.com | 23 Market Share Demographics ucbi.com | 23 3.09% 3.72% 4.80% 5.04% 5.91% 6.11% 6.22% 0% 1% 2% 3% 4% 5% 6% 7% Knoxville, TN Cleveland, TN Asheville, NC Greenville, SC Atlanta, GA Gainesville, GA Savannah, GA Key MSA Growth Markets - Projected Change 2015 - 2020 3.52% 3.54% 4.51% 4.92% 5.00
Slide 24: Liquidity
ucbi.com | 24 Liquidity ucbi.com | 24 Unused Capacity 2Q15 1Q15 2Q14 vs 1Q15 vs 2Q14 WHOLESALE BORROWINGS Brokered Deposits 163$ (1) 530$ 498$ 424$ 32$ 106$ FHLB 550 385 270 175 115 210 Holding Company LOC 50 - - 40 - (40) Fed Funds 415 25 - 25 25 - Other Wholesale - - - 11 - (11) Total 1,178$ 940$
Slide 25: Lending & Credit Environment
ucbi.com | 25 Lending & Credit Environment ucbi.com | 25 $ in Millions Regional Credit Review – Standard Underwriting • Legal Lending Limit $ 203 • House Lending Limit 25 • Project Lending Limit 15 • Top 25 Relationships 413 STRUCTURE PROCESS • Continuous external loan review • Internal loan review
Slide 26: Performing Classified Loans
ucbi.com | 26 Performing Classified Loans ucbi.com | 26 By Category $ in Millions 2Q14 3Q14 4Q14 1Q15 2Q15 Commercial: Commercial & Industrial 6$ 7$ 8$ 7$ 6$ Owner Occupied 48 50 46 44 40 Total C & I 54 57 54 51 46 Income Producing CRE 25 22 20 20 19 Commercial Construction 4 4 4 3 3 Total Commercia
Slide 27: TDRs
ucbi.com | 27 $84.8 $82.2 $81.3 $82.3 $89.9 $- $50 $100 $150 2Q14 3Q14 4Q14 1Q15 2Q15 TDRs ucbi.com | 27 $ in Thousands $ in Millions LOAN TYPE 2Q15 (1) 2Q14 2Q15 (1) 2Q14 2Q15 (1) 2Q14 Owner Occupied Commercial Real Estate 31.9$ 25.6$ 1.5$ 1.1$ 33.4$ 26.7$ Income Producing Commercial Real Estate 15
Slide 28: Lending & Credit Environment
ucbi.com | 28 Lending & Credit Environment ucbi.com | 28 $ in Millions Average Loan Size ($ in thousands) • Commercial Construction $564 • Commercial RE: • Composite CRE 483 • Owner Occupied 443 • Income Producing 644 Commercial RE Characteristics • 64.7% owner occupied • Small business, doctors, de
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