United Community Banks, Inc. · NYSE:UCB
United Community Banks — Investor Presentation (March 2002)
34 slides from United Community Banks's investor presentation, Mar 19, 2002
Slide 1: United Community Banks
United [wee] Community Banks
Slide 2: Safe Harbor Statement
United Community Banks 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 performan
Slide 3: Today's Agenda
United Community Banks Today’s Agenda » Who Is UCBI » What We Have Achieved » Reaching Our Objectives = Peer Comparisons = Summary
Slide 4: Who is UCBI? Overview
United Community Banks Who is UCBI? Overview $2.7 Billion Bank Holding Company 3rd largest Georgia-based bank holding company Listing on Nasdaq (UCBI) History of growth and profitability Unique footprint: difficult to duplicate Strong management team
Slide 5: Who is UCBI? Stock Profile
United Community Banks Who is UCBI? Stock Profile 2001 Trading Range (Known Saies) Stock Price (ucai Purchase Program) Market Cap Avg. Monthly Vol. Shares Outstanding Book Value Dividends/Payout Ratio Insider Ownership Shareholders Nasdaq Listing $29 - 45 $39 $420 million 53,000 10.8 million $17.94
Slide 6: Who Is UCBI? Unique Position
United Community Banks Who Is UCBI? Unique Position HQ - Blairsville, Georgia 9 state-chartered banks 16 banks and 49 offices - North Georgia (22 offices) - Metro Atlanta (13 offices) - Western North Carolina (14 offices) 1,048 FTEs serving 150,000 customers
Slide 7: Unique Footprint
Unique Footprint *Strong growth markets ¢Growth in metro markets Benefits of retirement and second homes
Slide 8: Who is UCBI? Growth Markets
United Community Banks Who is UCBI? Growth Markets » Georgia markets’ growth has been tremendous during the past decade 1990 —- 2000... @ 26% Population Growth @ 41% Population Growth in UCBI County Markets 98% Personal Income Growth e@ 58% Per Capita Income Growth » Georgia ranked number 5 in the n
Slide 9: Who is UCBI? Growth Markets
United Community Banks Who is UCBI? Growth Markets + Metro Atlanta market continues to lead the way for most of the nation... e@ 39% Population Growth During the Past Decade e@ Number Four Nation-wide MSA Population Growth » North Carolina markets had solid growth during the past decade 1990-2000 @
Slide 10: What We Have Achieved: Stated Financial Goals
United Community Banks What We Have Achieved Stated Financial Goals » Sustainable double-digit EPS growth « ROE of 16% - 18% - Focus on managed balance sheet growth, improved margin, ROA — Target ROA of 1.25+ - Target net interest margin of 4.50%
Slide 11: Asset Growth
United [areo] Community Banks What We Have Achieved Asset Growth 70% - Internal growth since 1991 $3.0 2.0 10 1997 1998 1999 2000 2001 [mAssets| S14 SLB $2.4 $25 $2.7 (At year-end, $ in billions) u
Slide 12: Loan Growth
United [areo] Community Banks What We Have Achieved Loan Growth 1997 1998 1999 2000 2001 @ Loans $1.0 $12 $1.6 $1.8 $2.0 (At year-end, $ in billions) Rn
Slide 13: Deposit Growth
United [areo] Community Banks What We Have Achieved Deposit Growth $3.0 20 1.0 1997 1998 1999 2000 2001 [@Deposits| $1.2 $1.4 $19 $2.0 $21 (At year-end, $ in billions) 13
Slide 14: Loan and Deposit Composition
United Community Banks Installment 7% MMDA Commercial 6% DDA » Savings IK 5% Residential Loans: $2.0 Deposits: $2.1 (84% secured by real estate) (At year-end, 2001, $ in billions) 4
Slide 15: Credit Quality (Allowance)
United [areo] Community Banks What We Have Achieved Credit Quality (Allowance) $30.0 20.0 10.0 1997 1998 1999 2000 2001 @ALL $124 $14.4 $20.0 $24.7 $27.1 % of Loans| 1.25% 1.20% 1.28% 1.38% 1.35% (At year-end, $ in millions) 15
Slide 16: Credit Quality (NPAs)
United [areo] Community Banks What We Have Achieved Credit Quality (NPAs) $12.0 10.0 38.0 6.0 4.0 2.0 1997 1998 1999 2000 2001 @NPAs $2.1 $2.3 $3.7 $6.7 $9.7 % of Assets AS 13. 15 27 35 (At year-end, $ in millions) 16
Slide 17: Credit Quality (net charge offs/Loans)
United [areo] Community Banks What We Have Achieved Credit Quality (net charge offs/Loans) 50% 40 30 20 10 1997 1998 1999 2000 2001 @Net Charge| .06% 09% 15% 18% 25% Offs‘Loans (At year-end, $ in millions) Ww
Slide 18: Net Interest Margin
United [areo] Community Banks What We Have Achieved Net Interest Margin ere) 4.50% 3.50 2.50 1997 1998 1999 2000 2001 @ Margin (FTE) | 4.60% 469% 4.07% 4.16% 451% 18
Slide 19: Return On Assets
United [areo] Community Banks What We Have Achieved Return On Assets 1.50% 1.00 50 1997 1998 1999 2000 2001 GROA! 1.06% 1.00% 381% 389% 1.10% (Excludes merger-related charges) 19
Slide 20: Net Income Growth
United [areo] Community Banks What We Have Achieved Net Income Growth 1997 1998 1999 @Net Income $13.4 $15.7 $173 $21.7 $28.3 ($ in millions; excludes merger-related charges) 20
Slide 21: Diluted EPS Growth
United [areo] Community Banks What We Have Achieved Diluted EPS Growth $3.00 2.00 1.00 1997 1998 1999 2000 2001 GEPS| $1.38 $154 $1.67 $2.07 $2.61 (Excludes merger-related charges) 21
Slide 22: Return on Common Equity
United [areo] Community Banks What We Have Achieved Return on Common Equity 18% 16 wu [L vn fl 10 1997 1998 1999 2000 2001 GActual| 1558% | 14.91% | 14.42% | 15.06% | 16.73% (Excludes merger-related charges and FAS 115) n
Slide 23: 2001 Financial Summary
United Community Banks 2001 Financial Summary Change 5-Yr CAGR Total Revenue Net Income EPS ROE ROA Net Interest Margin Efficiency Ratio NPA/Assets (8 in millions, except per share) $128.4 +19% 21% 28.3 30 22 2.61 26 18 16.73% +167bps 1.10 24 451 35 62.52 163 35 (.08) 23
Slide 24: A Strong Executive Team
United Community Banks Reaching Our Objectives A Strong Executive Team Jimmy Tallent, President and CEO Joined in 1984 Harold Brewer, EVP and COO Joined in 2000 from Brintech Rex Schuette, EVP and CFO Joined in 2001 from State Street Corp. Guy Freeman, EVP of Banking Joined in 1994 Tom Gilliland, EV
Slide 25: Deep Management Strength
United te] Community Banks Reaching Our Objectives Deep Management Strength 16 affiliate bank presidents with average 20 years community banking experience, 90% in their market
Slide 26: Community Banking Principles
United Community Banks Reaching Our Objectives Community Banking Principles « Building a loyal customer base - Engaged employees — High level of personal service - Resources for more competitive products - Dominant market share « Traditional banking services - Real estate lending (construction/perma
Slide 27: Strategies
United Community Banks Reaching Our Objectives Strategies Retain and motivate the best qualified bankers Maintain strong credit quality Maintain net interest margin Grow fee revenue Provide superior customer service Control expenses; infrastructure in place Make selective acquisitions and grow inter
Slide 28: Current Initiatives
United Community Banks Reaching Our Objectives Current Initiatives » New branch platform and teller system » Marketing / Training / Customer Care » Margin management » Enhance customer revenue and new products » Increase market share in high-growth areas » Make selective acquisitions 28
Slide 29: Growth Through Mergers
United Community Banks Reaching Our Objectives Growth Through Mergers Date of Assets at Assets at Asset Affiliates Acquisition Acquisition 12/31/01 Growth Floyd Aug-99 $108 $177 64% Adairsville Mar-99 38 81 113 Gilmer Jan-98 23 79 243 Clayton Sep-97 72 144 100 Habersham Sep-96 33 101 206 White Aug-9
Slide 30: Metro Atlanta Expansion
Reaching Our Objectives Metro Atlanta Expansion ronmmbyite | conti « High-growth “I 75” anit and “400” corridor a + Excellent mix of commercial, industrial and residential growth markets poverty ‘CARROLLTON 30
Slide 31: Focus Going Forward
United Community Banks Reaching Our Objectives Focus Going Forward Enhance shareholder value through sustained double-digit EPS growth Leverage United brand name through marketing and new products Maximize benefits of technology/infrastructure initiatives Manage expense growth Leverage move to Nasda
Slide 32: Peer Group Comparison
United tustee] Community Banks Peer Group Comparison 2001 Comparison (vear-ena) 18.0 [ fits | ili | ROA NPAs Efficiency mUCBI (Peer Group Avg* °CHZ, SWET, SRCE, FCTR,ALAB, SBIB, MSBK,PRSP.SBCFA,TSFG, HARB EPS 5 Yr. CAGR 32
Slide 33: Summary: Reasons To Invest
Community Banks United Summary Reasons To Invest Consistent, double-digit EPS growth Strong management team 3rd largest Georgia-based bank holding company...and growing Unique footprint and franchise Turning customer service into market share
Slide 34: Discussion
Discussion
United Community Banks — Investor Presentation (March 2002) on 6ix