United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q1 2019 Earnings Presentation
25 slides from United Community Banks's earnings presentation, Apr 23, 2019
Slide 1: 1st Quarter 2019 Investor Presentation
1st Quarter 2019 Investor Presentation April 23, 2019
Slide 2: Disclosures
Disclosures CAUTIONARY STATEMENT This investor presentation may contain forward-looking statements, as defined by federal securities laws, including statements about United and its financial outlook and business environment. These statements are based on current expectations and are provided to assi
Slide 3: Who We Are - Snapshot of United Community Banks, Inc.
Who We Are - Snapshot of United Community Banks, Inc. 1Q19 Overview Ticker UCBI (NASDAQ) Market Cap $2.1Bn P/EPS (2019E) 11.7x P/TBV 177% Assets $12.5Bn Loans $8.5Bn Deposits $10.5Bn CET1* 12.4% NPAs / Assets 0.20% ROA – GAAP 1.44% ROA – Operating (1) 1.45% ROCE – GAAP 11.85% ROTCE – Operating (1) 1
Slide 4: Our Goals
Our Goals People Service Profitability Great Place to Work for Best-in-Class Customer Sustainable Top Quartile Great People Service Rating across all ROA channels We have a long-term We are here to help We earn our mindset, building a customers live better independence by company where great lives b
Slide 5: 1Q19 Highlights
1Q19 Highlights ¾ GAAP diluted earnings per share of $0.55 Earnings Per Share Return on Assets ¾ Operating diluted earnings per share $0.56 $0.57 $0.55 $0.56 1.43% 1.45% 1.44% 1.45% of $0.56, up 12% vs. the year ago $0.47 $0.50 1.33% quarter 1.26% ¾ GAAP ROA of 1.44% in 1Q ¾ Operating ROA of 1.45% 1
Slide 6: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin $ in millions ¾ Net interest revenue of $115.6 mm increased $0.8 $114.9 $115.6 mm (0.7%) vs. 4Q18 and $12.3 mm (12.0%) vs. 1Q18 ¾ Benefit of organic loan growth, Navitas acquisition and a mix change towards loans from securities (EOP loans are $103.3 up $110 mm from
Slide 7: Deposit Growth
Deposit Growth Deposits by Category in millions 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Non-Interest Bearing Core Demand Deposit $ 3,027 $ 3,068 $ 3,118 $ 3,048 $ 3,159 Interest Bearing Core NOW 1,225 1,204 1,200 1,193 1,203 MMDA 1,979 1,989 2,015 2,048 2,050 Savings 675 681 678 667 679 Total Intere
Slide 8: Deposits
Deposits Low-Cost Deposit Base Sufficient Liquidity to Support Future Growth Cost of Total Deposits (bps) (1) Loans / Deposits (1) (2) (3) 94% 80 72 bps 81% 70 1Q19 cost of deposits moved to 62 bps and the deposit beta remained flat at 38% 60 54 bps 50 KRX Peer 44 bps 40 33 bps 30 26 bps 20 10 0 KRX
Slide 9: Loans
Loans $ in billions $8.4 $8.5 $8.2 ¾ Annualized linked quarter loan growth was $0.6 7.1% $0.6 7.1% $110 mm, or 5%; excluding the impact of $0.4 4.9% $0.3 3.6% $0.3 3.5% planned indirect auto runoff of $27 mm, $0.5 6.1% linked quarter loan growth was $137 mm, or $1.9 22.4% 7% annualized $1.9 $2.0 23.
Slide 10: Fee Revenue
Fee Revenue $ in millions $23.0 ¾ Vs. Linked quarter, fees down $2.0 mm due to: $22.4 ¾ Strong mortgage volume offset by $1.3 mm negative MSR $1.8 $2.5 $21.0 mark; record number of mortgage locks up 23% in 1Q19 vs. 4Q18 $1.3 ¾ SBA fees lower than last quarter due to expected $3.1 seasonality and the
Slide 11: Expense Discipline
Expense Discipline $ in millions ¾ Linked quarter, GAAP and operating expenses $78.2 decreased 3% and 2%, respectively $77.0 ¾ Salary and benefits expenses higher due to benefits $76.1 $75.3 expense and higher payroll taxes $73.5 ¾ Operating efficiency ratio improved 105 bps to 54.8% $70.8 ¾ Remaini
Slide 12: Credit Quality
Credit Quality Provision for Credit Losses Net Charge-Offs as % $ in millions of Average Loans $3.8 $3.3 0.15% $2.1 0.09% 0.08% 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Allowance for Loan Losses Non-Performing Assets as % of Total Assets 0.75% 0.73% 0.73% 0.24% 0.20% 0.20% 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 ucbi.co
Slide 13: Capital Ratios
Capital Ratios Holding Company 1Q18 4Q18 1Q19* Common Equity Tier I 11.3% 12.2% 12.4% Capital Tier I Risk-Based Capital 11.6 12.4 12.7 Total Risk-Based Capital 13.5 14.3 14.6 Leverage 9.1 9.6 9.9 Tangible Common Equity to 8.7 9.3 9.8 Tangible Assets ¾ Profitability continues to provide significant c
Slide 14: Key Strengths
Key Strengths ¾Culture and business model that attracts both bankers and potential acquisition partners ¾Positioned well in many of the South's fastest-growing markets ¾Superior customer service helps drive great core deposit growth ¾Well-developed credit model to drive consistent performance throug
Slide 15: Acquisition of First Madison Bank & Trust
Acquisition of First Madison Bank & Trust Transaction Overview ¾ Announced February 5, 2019 ¾ Expected closing in second quarter 2019 ¾ 100% cash ¾ $52 million transaction value ¾ 172% P/TBV ¾ Strategic fill-in with a well-established, high- performing community bank Company Snapshot ¾ Assets: $258
Slide 16: Presentation Exhibits
ei United Community Banks. Presentation Exhibits = Wis
Slide 17: Who We Are
Who We Are Full-Service Regional Bank with a Strong Culture Rooted in Sound Credit Underwriting & Growth Cultural Pillars Customer Service Is at Our Foundation ¾ Underwriting conservatism and portfolio diversification High-Quality ¾ Top quartile credit quality performance Balance ¾ Prudent capital,
Slide 18: Awards and Recognition
AWARDS AND RECOGNITION ucbi.com | 18
Slide 19: Who We Are: Focused on High-Growth MSAs in Southeast
Who We Are Focused on High-Growth MSAs in Southeast 2019-2024 2024 Proj. Strong Demographic Profile (2) Fastest Growing Proj. 2019 Median Southeast MSAs (1) Population Population Household Growth Income ’19 – ’24 Proj. Population Growth 1. Myrtle Beach, SC 9.66% 485,770 $55,203 5.2% 2. Cape Coral, F
Slide 20: New Loans Funded and Advances
(1) New Loans Funded and Advances $ in millions New Loans Funded and Advances New Loans Funded and Advances by Region Variance-Incr(Decr) 1Q19 4Q18 1Q18 4Q18 1Q18 * Atlanta Coastal Georgia $ 136.9 54.1 $ 145.0 27.1 $ 121.1 39.3 $ (8.1) $ 27.0 15.8 14.8 $868.3 North Georgia 62.2 60.2 60.2 2.0 2.0 $78
Slide 21: Commercial RE Diversification – 3/31/2019
Commercial RE Diversification – 3/31/2019 Commercial Construction Commercial Real Estate – Income Producing in millions in millions Committed Outstanding Committed Outstanding Assisted Living/Nursing Home/Rehab Cntr $ 326 22.7 % $ 169 19.5 % Office Buildings $ 457 23.2 % $ 416 22.2 % Multi-Residenti
Slide 22: Strong Credit Culture
Strong Credit Culture 2. Add Significant Talent ¾ CEO with deep knowledge and 1. Process Change experience in credit ¾ In 2014, centralized and ¾ 2015 Rob Edwards brought in to lead streamlined consumer underwriting team (BB&T, TD Bank) and related functions ¾ Senior credit risk team now has large ¾
Slide 23: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q18 2Q18 3Q18 4Q18 1Q19 (1) (1) (1) (1) (1) Net Income Net income - GAAP $ 37,658 $ 39,634 $ 43,682 $ 45,137 $ 44,262 Merger-related and other charges 2,646 2,873 592 1,234 739 Tax benefit on merger-related and other charges (628)
Slide 24: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables $ in thousands, except per share data 1Q18 2Q18 3Q18 4Q18 1Q19 (1) (1) (1) (1) (1) Return on Tangible Common Equity Return on common equity - GAAP 11.11 % 11.20 % 11.96 % 12.08 % 11.85 % Effect of merger-related and other charges 0.60 0.77 0.13 0.17 0.15 Return on comm
Slide 25: UNITED
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