United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q3 2011 Earnings Presentation

76 slides from United Community Banks's earnings presentation, Oct 27, 2011

  1. Slide 1: United Community Banks Reports Net Loss of $6.2 Million for Third Quarter 2011

    For Immediate Release For more information: Rex S. Schuette Chief Financial Officer (706) 781-2266 Rex_Schuette@ucbi.com UNITED COMMUNITY BANKS, INC. REPORTS NET LOSS OF $6.2 MILLION FOR THIRD QUARTER 2011 • Special $25 million loan loss provision drove net loss • Excluding this special provision, n

  2. Slide 2: Loans, provision, nonperforming assets and net interest revenue

    Total loans were $4.1 billion at quarter-end, down $53 million from the end of the second quarter and down $650 million from a year earlier. “The $53 million decrease during the third quarter was up from the $31 million decrease during the second quarter, but still represents the second lowest quart

  3. Slide 3: Core deposits, fee revenue and operating expenses

    growth in core transaction deposits, which now represents 48 percent of total deposits compared to 30 percent at the end of 2008.” Fee revenue was $11.5 million in the third quarter of 2011, compared to $12.9 million a year ago and $13.9 million last quarter. Service charges and fees were $7.5 milli

  4. Slide 4: Foreclosed property costs and effective tax rate

    Foreclosed property costs for the third quarter of 2011 were $2.8 million as compared to $1.9 million last quarter and $19.8 million a year ago. The third quarter of 2011 included $1.8 million for maintenance of foreclosed properties and $1.0 million in net losses and write-downs on properties. For

  5. Slide 5: Conference Call and About United Community Banks

    deferred tax assets many years prior to their expiration. However, considering the SEC’s inquiry, it is possible we could be required to record a valuation allowance.” Conference Call United Community Banks will hold a conference call today, Thursday, October 27, 2011, at 11 a.m. ET to discuss the c

  6. Slide 6: Forward-looking statements

    speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements. ###

  7. Slide 7: Financial Highlights: Selected Financial Information

    UNITED COMMUNITY BANKS, INC. Financial Highlights Selected Financial Information Third 2011 2010 Quarter For the Nine YTD (in thousands, except per share Third Second First Fourth Third 2011-2010 Months Ended 2011-2010 data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter Change 2011 201

  8. Slide 8: Operating Earnings to GAAP Earnings Reconciliation

    UNITED COMMUNITY BANKS, INC. Operating Earnings to GAAP Earnings Reconciliation Selected Financial Information 2011 2010 (in thousands, except per share Third Second First Fourth Third For the Nine Months Ended data; taxable equivalent) Quarter Quarter Quarter Quarter Quarter 2011 2010 Interest reve

  9. Slide 9: Loan Portfolio Composition at Period-End

    UNITED COMMUNITY BANKS, INC. Financial Highlights Loan Portfolio Composition at Period-End (1) 2011 2010 Linked Year over Third Second First Fourth Third Quarter Year (in millions) Quarter Quarter Quarter Quarter Quarter Change Change LOANS BY CATEGORY Commercial (sec.by RE) $ 1,771 $ 1,742 $ 1,692

  10. Slide 10: Credit Quality

    UNITED COMMUNITY BANKS, INC. Financial Highlights Credit Quality (1) Third Quarter 2011 Second Quarter 2011 First Quarter 2011 (2) Non-performing Foreclosed Total Non-performing Foreclosed Total Non-performing Foreclosed Total (in thousands) Loans Properties NPAs Loans Properties NPAs Loans Properti

  11. Slide 11: Net Charge-Off Summary

    UNITED COMMUNITY BANKS, INC. Financial Highlights (1) Net Charge-Off Summary Second Quarter 2011 First Quarter 2011 First Six Months 2011 Problem Problem Problem Asset Asset Asset Disposition Disposition Disposition (in thousands) Other Plan Total Other Plan Total Other Plan Total BY CATEGORY Commer

  12. Slide 12: Consolidated Statement of Operations

    UNITED COMMUNITY BANKS, INC. Consolidated Statement of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2011 2010 2011 2010 Interest revenue: Loans, including fees $ 59,294 $ 68,419 $ 181,359 $ 211,245 Investment securities

  13. Slide 13: Consolidated Balance Sheet

    UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheet September 30, December 31, September 30, (in thousands, except share and per share data) 2011 2010 2010 (unaudited) (audited) (unaudited) ASSETS Cash and due from banks $ 57,780 $ 95,994 $ 104,033 Interest-bearing deposits in banks 241,440 111,

  14. Slide 14: Average Balance Sheets and Net Interest Analysis, Three Months

    UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Three Months Ended September 30, 2011 2010 Average Avg. Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate Assets: Interest-earning assets: Loans, net o

  15. Slide 15: Average Balance Sheets and Net Interest Analysis, Nine Months

    UNITED COMMUNITY BANKS, INC. Average Consolidated Balance Sheets and Net Interest Analysis For the Nine Months Ended September 30, 2011 2010 Average Avg. Average Avg. (dollars in thousands, taxable equivalent) Balance Interest Rate Balance Interest Rate Assets: Interest-earning assets: Loans, net of

  16. Slide 16: United Community Banks, Inc. Third Quarter 2011

    United Community Banks, Inc. Investor Presentation Third Quarter 2011 Jimmy C. Tallent Rex S. Schuette David P. Shearrow President & CEO EVP & CFO EVP & CRO rex_schuette@ucbi.com (706) 781-2266

  17. Slide 17: Cautionary Statement

    Cautionary Statement 2 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. Such performance i

  18. Slide 18: Non-GAAP Measures

    Non-GAAP Measures 3 This presentation also contains non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). Such non-GAAP financial measures include the following: net interest margin – pre credit, core net interest margin, c

  19. Slide 19: Highlights Third Quarter

    Highlights Third Quarter 4 Special Loan Loss Provision Other credit trends stable or improving Margin Improving With Lower Deposit Pricing Strong Core Deposit Growth

  20. Slide 20: Loan Portfolio & Credit Quality

    5 LOAN PORTFOLIO & CREDIT QUALITY

  21. Slide 21: Loan Portfolio (total $4.11 billion)

    Loan Portfolio (total $4.11 billion) 6 Geographic Diversity $ in millions

  22. Slide 22: Commercial Loans (total $2.37 billion)

    Commercial Loans (total $2.37 billion) 7 Geographic Diversity $ in millions

  23. Slide 23: Commercial Real Estate (by loan type)

    Commercial Real Estate (by loan type) 8 (in millions) September 30, 2011 Portfolio Characteristics Owner Income Loan Type Occupied Producing Total Percent Office Buildings $ 257 $ 206 $ 463 26 % Retail 75 144 219 15 59% owner-occupied Small Warehouses/Storage 112 71 183 11 Churches 142 - 142 9 Small

  24. Slide 24: Commercial Construction (by loan type)

    Commercial Construction (by loan type) 9 (in millions) June 30, 2011 Loan Type Amount Percent Land Develop - Vacant (Improved) $ 67 40 % Portfolio Characteristics Raw Land - Vacant (Unimproved) 60 36 Commercial Land Development 24 14 Average loan size: $450k Golf Course/Country Club 6 4 Office Build

  25. Slide 25: Residential Mortgage (total $1.15 billion)

    Residential Mortgage (total $1.15 billion) 10 Geographic Diversity $ in millions Avg loan size: $43k Avg loan size: $94k Origination Characteristics No broker loans Policy Max LTV: 80-85% 51% of HE Primary Lien

  26. Slide 26: Residential Construction (total $.47 billion)

    Residential Construction (total $.47 billion) 11 Geographic Diversity $ in millions Developing Average Loan Size Spec $219k Develop $622k Sold $131k Raw Land $155k Lot $89k

  27. Slide 27: Residential Construction – Total Company

    Residential Construction – Total Company 12 3Q11 vs. (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 Land Loans Developing Land $ 97 $ 105 $ 116 $ 174 $ 190 $ (93) Raw Land 60 62 69 99 104 (44) Lot Loans 216 218 228 275 303 (87) Total 373 385 413 548 597 (224) Construction Loans Spec 64 74 88 97 109 (45

  28. Slide 28: New Loans Funded – Category and Market

    New Loans Funded – Category and Market 13 (in millions) 2011 2011 CATEGORY 3Q YTD MARKET 3Q YTD Commercial RE: N. Georgia $ 27.9 $ 83.3 Owner Occupied $ 42.0 $ 92.7 Atlanta 35.4 82.3 Income Producing 9.8 42.0 Coastal Georgia 6.8 37.4 Total Commercial RE 51.8 134.7 North Carolina 6.2 18.0 Commercial

  29. Slide 29: Credit Quality

    Credit Quality 14 (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 (1) Operating Net Charge-offs $ 17.5 $ 16.5 $ 231.6 $ 47.7 $ 50.0 as % of Average Loans (1) 1.68 % 1.58 % 20.71 % 4.03 % 4.12 % Allowance for Loan Losses $ 146.1 $ 127.6 $ 133.1 $ 174.7 $ 174.6 as % of Total Loans 3.55 % 3.07 % 3.17 % 3.79 % 3

  30. Slide 30: NPL Inflow Trends

    NPL Inflow Trends 15 Quarterly NPL Inflows Since 2009 ($mm) 46.5% Decline from Peak 86.2% Decline without SLR* *SLR – Single Loan Relationship $76.6 million added in Q3; excluding SLR NPL Inflow was $26.7 million Resi Construction Com. Construction Resi. Mortgage Com. RE Commercial Consumer Total NP

  31. Slide 31: Net Charge-offs by Loan Category

    Net Charge-offs by Loan Category 16 (in thousands) 3Q11 % of Average Loans (Annualized) % of Avg (1) (1) (2) Total Loans 2Q11 1Q11 4Q10 Commercial (Sec. by RE): Owner Occupied $ 884 .34 % .89 % .89 % .93 % Income Producing 1,308 .71 1.54 .33 2.10 Total Comm (Sec. by RE) 2,192 .50 1.16 .65 1.45 Comme

  32. Slide 32: Net Charge-offs by Market

    Net Charge-offs by Market 17 (in thousands) 3Q11 % of Average Loans (Annualized) % of Avg (1) (1) (2) Total Loans 2Q11 1Q11 4Q10 Atlanta MSA $ 2,813 .94 % 1.66 % 1.04 % 4.48 % Gainesville MSA 1,804 2.64 3.73 1.32 4.37 North Georgia 8,124 2.16 2.71 2.06 4.26 Western North Carolina 3,608 2.31 2.67 3.9

  33. Slide 33: NPAs by Loan Category and Market

    NPAs by Loan Category and Market 18 (in thousands) 3Q11 3Q11 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY MARKETS Commercial (sec. by RE): Atlanta MSA $ 13,350 $ 12,971 $ 26,321 Owner Occupied $ 6,141 $ 5,827 $ 11,968 Gainesville MSA 5,311 2,495 7,806 Income Producing 15,857 3,053 18,910

  34. Slide 34: Financial Review

    Financial Review — 2p. comm [uniteo] Community Banks.

  35. Slide 35: Core Earnings Summary

    Core Earnings Summary 20 (In Thousands) Variance - Incr / (Decr) 3Q11 2Q11 3Q10 Net Interest Revenue $ 59,281 $ 335 $ (733) Fee Revenue 11,309 213 (687) Gross Revenue 70,590 548 (1,420) Operating Expense (Excl OREO) 44,093 (1,587) (790) Pre-Tax, Pre-Credit (Core) $ 26,497 $ 2,135 $ (630) Net Interes

  36. Slide 36: Net Interest Margin

    Net Interest Margin 21 NIM Characteristics 4.5% 4.13% 4.47% 4.51% „ Core margin 4.05% 3.87% 3.84% 3.71% -Up 14 bps vs. 2Q10 3.57% 3.58% 3.41% 3.41% 3.55% -Credit costs flat 3.0% „ Maintained loan pricing 1.5% „ Lowered core & CD pricing „ 3Q Excess liquidity .0% 3Q10 4Q10 1Q11 2Q11 3Q11 lowered Marg

  37. Slide 37: Margin – Credit Costs

    Margin – Credit Costs 22 Credit Costs Impacting Margin .56% .47% .46%* „ Historically 8 to 12 bps „ Significant improvement with .30% de-risking balance sheet first .29% quarter „ Cost 3Q11 vs. Historical – 17 bps (annual earnings impact of $11.2 million) „ 1 bps = $660 thousand in NIR Interest Reve

  38. Slide 38: Key Drivers of Net Interest Revenue

    Key Drivers of Net Interest Loan Pricing Revenue – New and / Margin Renewed 23 Positive Impact on Margin „ Holding loan pricing flat „ Actively lowering deposit pricing 4.11 4.35 4.31 4.74 4.76 Loan Pricing Spreads

  39. Slide 39: Deposit CD Pricing, Excluding Brokered Deposits

    Deposit CDPricing, PricingExcluding Brokered Deposits 24 Note – CD pricing reflects the quarterly average of new and renewed pricing for each quarter. MMDA / NOW pricing reflects the deposit yield for each quarter

  40. Slide 40: Deposit Mix (total $6.0 billion)

    Deposit Mix (total $6.0 billion) 25 3Q11 ($ in millions) $6.0B 48% 3Q11 2Q11 3Q10 4Q08 Demand / NOW $ 1,686 $ 1,620 $ 1,581 $ 1,457 MMDA / Savings 1,220 1,174 977 630 Core Transaction 2,906 2,794 2,558 2,087 +112 +348 14% Growth +819 39% Growth 4Q08 Time < $100,000 1,387 1,503 1,492 1,945 $7.0B 30%

  41. Slide 41: Core Deposit Growth – Category and Market

    Core Deposit Growth – Category and Market 26 (in millions, excluding public) 2011 2011 CATEGORY 3Q YTD MARKET 3Q YTD Demand $ 70.0 $ 176.9 N. Georgia $ 33.2 $ 93.6 NOW (4.7) (64.0) Atlanta 54.9 92.2 MM Accounts 44.3 141.1 North Carolina 15.6 31.0 Savings 2.4 16.2 Coastal Georgia 6.1 25.5 Total Categ

  42. Slide 42: Fee Revenue - Core

    Fee Revenue - Core 27 (In Thousands) Variance - Incr / (Decr) 3Q11 2Q11 3Q10 NSF & Overdraft Fees $ 3,541 $ (117) $ (886) ATM Fees 3,302 23 785 Other Service Charges 691 20 (13) Total Service Charges and Fees 7,534 (74) (114) Mortgage Loan & Related Fees 1,148 196 (923) Brokerage Fees 836 145 105 Ot

  43. Slide 43: Operating Expenses - Core

    Operating Expenses - Core 28 (In Thousands) Variance - Incr / (Decr) 3Q11 2Q11 3Q10 Salaries & Employee Benefits $ 25,648 $ 369 1,028 Communications & Equipment 3,284 (94) (336) Occupancy 3,794 (11) 74 FDIC Assessment 2,603 (1,041) (653) Advertising & Public Relations 1,052 (265) (76) Postage, Print

  44. Slide 44: Net Operating Loss

    Net Operating Loss 29 (In Thousands) 3Q11 2Q11 3Q10 Pre-Tax, Pre-Credit (Core) $ 26,497 $ 24,362 $ 27,127 Provision for Loan Loss (36,000) (11,000) (50,500) Foreclosed Property Costs: Write-downs (1,772) (3,118) (7,051) Gains (Losses) on Sales 804 3,218 (7,136) Maintenance, Taxes, Etc. (1,845) (1,99

  45. Slide 45: Net Income (Loss)

    Net Income (Loss) 30 (In Thousands) 3Q11 2Q11 3Q10 Net Income (Loss) $ (6,202) $ 7,617 $ (236,415) Preferred Stock Dividends (3,019) (3,016) (2,581) Net Income (Loss) Avail to Common Shareholders $ (9,221) $ 4,601 $ (238,996) Net Income (Loss) Per Share $ (.16) $ .08 $ (12.62) Tangible Book Value $

  46. Slide 46: Capital Ratios

    Capital Ratios 31 Capitalized Guideline SEP '11 JUN '11 MAR '11 Bank Tier 1 RBC 6 % >9 % 13.8 % 13.6 % 13.0 % Total RBC 10 > 11 15.1 15.4 14.7 Leverage 5 >8 8.8 8.5 8.3 Holding Company Tangible Equity to Assets 11.8 11.1 8.7 Tangible Common to Assets 9.1 8.9 * 8.4 ** Tier 1 RBC 6 >9 14.0 13.9 7.7 To

  47. Slide 47: Appendix

    United lwniteo] Community Banks.

  48. Slide 48: United at a Glance

    United at a Glance 33 Assets $7.2 Billion Banks 27 Deposits $6.0 Billion Offices 105

  49. Slide 49: Experienced Proven Leadership

    Experienced Proven Leadership 34 Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 37 Guy Freeman Chief Operating Officer 1992 53 Rex Schuette Chief Financial Officer 2001 34 David Shearrow Chief Risk Officer 2007 30 Glenn White President, Atlanta Region 2007 37 Craig Metz Marketing 20

  50. Slide 50: Business and Operating Model

    Business and Operating Model 35 “Community bank service, large bank resources” Twenty-seven “community banks” ƒ Local CEOs with deep roots in their communities ƒ Resources of $7.2 billion bank Service is point of differentiation ƒ #1 in Customer Satisfaction according to Customer Service Profiles ƒ

  51. Slide 51: Robust Demographics (fast growing markets)

    Robust Demographics (fast growing markets) 36 Population Growth (%) Population Actual Projected Markets1 (in thousands) 2000 - 2010 2010 - 2015 North Georgia 394 23 % 7% Atlanta MSA 5,611 32 10 Gainesville MSA 191 37 13 Coastal Georgia 373 11 5 Western North Carolina 429 12 4 East Tennessee 860 14 6

  52. Slide 52: Market Share Opportunities

    Market Share Opportunities 37 (excellent growth prospects) Market Deposits United Deposit Markets (in billions) (1) Deposits (2) Banks Offices Share (1) (1) Rank North Georgia $ 6.8 $ 2.0 11 23 33 % 1 Atlanta MSA 48.2 2.0 10 37 4 7 Gainesville MSA 2.5 .3 1 6 14 3 Coastal Georgia 7.0 .4 2 9 6 7 Weste

  53. Slide 53: Leading Demographics

    Leading Demographics 38 Total Assets 2010 - 2015 Population Rank Ticker Company(1) State ($ B) Growth (2) 1 CFR Cullen/Frost Bankers, Inc. TX $18.5 9.07% 2 WAL Western Alliance Bancorporation AZ 6.5 7.60 3 FCNCA First Citizens Bancshares, Inc. NC 21.0 7.41 4 GBCI Glacier Bancorp, Inc. MT 7.0 7.19 5

  54. Slide 54: Proactively Addressing Credit Environment

    Proactively Addressing Credit Environment 39 Structure ƒ Centralized underwriting and approval process ƒ Segregated work-out teams ƒ Highly skilled ORE disposition group ƒ Seasoned regional credit professionals Process ƒ Continuous external loan review ƒ Intensive executive management involvement: o

  55. Slide 55: Performing Classified Loans

    Performing Classified Loans 40 (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 LOANS BY CATEGORY Commercial (Sec. by RE): Owner Occupied $ 69 $ 72 $ 75 $ 86 $ 83 Income Producing 65 46 45 71 74 Total Comm (Sec. by RE) 134 118 120 157 157 Commercial Construction 26 31 35 90 103 Commercial & Industrial 25 17 1

  56. Slide 56: Business Mix Loans (at quarter-end)

    Business Mix Loans (at quarter-end) 41 3Q11 vs. (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 LOANS BY CATEGORY Commercial (Sec. by RE): Owner Occupied $ 1,037 $ 1,014 $ 994 $ 980 $ 994 $ 43 Income Producing 734 728 698 781 787 (53) Total Comm (Sec. by RE) 1,771 1,742 1,692 1,761 1,781 (10) Commercial

  57. Slide 57: Loans – Markets Served (at quarter-end)

    Loans – Markets Served (at quarter-end) 42 3Q11 vs. (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 LOANS BY MARKET Atlanta MSA $ 1,192 $ 1,188 $ 1,179 $ 1,310 $ 1,365 $ (173) Gainesville MSA 272 275 282 312 316 (44) North Georgia 1,478 1,500 1,531 1,689 1,755 (277) Western North Carolina 607 626 640 70

  58. Slide 58: Residential Construction – North Georgia

    Residential Construction – North Georgia 43 3Q11 vs. (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 Land Loans Developing Land $ 51 $ 58 $ 62 $ 88 $ 98 $ (47) Raw Land 25 25 27 40 42 (17) Lot Loans 124 129 131 159 168 (44) Total 200 212 220 287 308 (108) Construction Loans Spec 15 18 25 31 38 (23) Sold

  59. Slide 59: Residential Construction – Atlanta MSA

    Residential Construction – Atlanta MSA 44 3Q11 vs. (in millions) 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 Land Loans Developing Land $ 19 $ 20 $ 22 $ 30 $ 34 $ (15) Raw Land 15 16 19 23 27 (12) Lot Loans 22 22 24 32 45 (23) Total 56 58 65 85 106 (50) Construction Loans Spec 28 30 34 38 42 (14) Sold 8 9 11 10 1

  60. Slide 60: Business Mix Loans (at year-end)

    Business Mix Loans (at year-end) 45 (in millions) 2010 2009 2008 2007 2006 LOANS BY CATEGORY Commercial (Sec. by RE) $ 1,761 $ 1,779 $ 1,627 $ 1,476 $ 1,230 Commercial Construction 297 363 500 527 469 Commercial & Industrial 441 390 410 418 296 Total Commercial 2,499 2,532 2,537 2,421 1,995 Resident

  61. Slide 61: Loans – Markets Served (at year-end)

    Loans – Markets Served (at year-end) 46 (in millions) 2010 2009 2008 2007 2006 LOANS BY MARKET Atlanta MSA $ 1,310 $ 1,435 $ 1,706 $ 2,002 $ 1,651 Gainesville MSA 312 390 420 399 354 North Georgia 1,689 1,884 2,040 2,060 2,034 Western North Carolina 702 772 810 806 773 Coastal Georgia 335 405 464 41

  62. Slide 62: Lending – Credit Summary

    Lending – Credit Summary 47 (in millions) Legal lending limit $220 House lending limit 20 9Project lending limit 12 Top 25 relationships 410 Regional credit review – Standard underwriting

  63. Slide 63: NPAs by Loan Category, Market, and Activity

    NPAs by Loan Category, Market, and Activity 48 (2) Third Quarter 2011 Second Quarter 2011 First Quarter 2011 Non-performing Foreclosed Total Non-performing Foreclosed Total Non-performing Foreclosed Total (in thousands) Loans Properties NPAs Loans Properties NPAs Loans Properties NPAs NPAs BY CATEGO

  64. Slide 64: Net Charge-offs by Category and Market

    Net Charge-offs by Category and Market 49 (3) (3) Third Quarter 2011 Second Quarter 2011 First Quarter 2011 Net Charge- Net Charge- Net Charge- Offs to Offs to Offs to Net Average Net Average Net Average (4) (4) (4) (in thousands) Charge-Offs Loans Charge-Offs Loans Charge-Offs Loans NET CHARGE-OFFS

  65. Slide 65: Net Charge-offs by Category and Market: Asset Disposition Plan

    Net Charge-offs by Category and Market 50 Asset Disposition Plan as of March 31, 2011 Credit Quality - Net Charge-Offs First Quarter 2011 (1) Asset Disposition Plan Bulk Loan Sale (2) First Quarter Performing Nonperforming Other Bulk Loan Foreclosure Other Net 2011 Net Charge- (in thousands) Loans L

  66. Slide 66: Credit Quality – Bulk Loan Sale Summary

    Credit Quality – Bulk Loan Sale Summary 51 as of March 31, 2011 Credit Quality - Bulk Loan Sale Summary (1) Performing Loans Nonperforming Loans Total Loans Carrying Charge- Loans Held Carrying Charge- Loans Held Carrying Charge- Loans Held (in thousands) Amount (2) Offs (3) for Sale (4) Amount (2)

  67. Slide 67: Loans / Deposits – Liquidity

    Loans / Deposits – Liquidity 52 (in millions) Variance 3Q11 2Q11 3Q10 vs 2Q11 vs 3Q10 Loans $ 4,110 $ 4,163 $ 4,760 $ (53) $ (650) Core (DDA, MMDA, Savings) $ 2,906 $ 2,794 $ 2,558 $ 112 $ 348 Public Funds 635 649 623 (14) 12 CD's 2,254 2,439 2,463 (185) (209) Total Deposits (excl Brokered) $ 5,795

  68. Slide 68: Wholesale Borrowings - Liquidity

    Wholesale Borrowings - Liquidity 53 (in millions) Unused Variance Capacity 3Q11 2Q11 3Q10 vs 2Q11 vs 3Q10 Wholesale Borrowings Brokered Deposits $ 1,580 $ 210 $ 301 $ 354 $ (91) $ (144) FHLB 1,391 41 41 55 - (14) Fed Funds 50 - - - - - Other Wholesale 405 103 104 104 (1) (1) Total $ 3,426 $ 354 $ 44

  69. Slide 69: Business Mix – Deposits (at quarter-end)

    Business Mix – Deposits (at quarter-end) 54 (in millions) 3Q11 vs. DEPOSITS BY CATEGORY 3Q11 2Q11 1Q11 4Q10 3Q10 3Q10 Demand & Now $ 1,686 $ 1,620 $ 1,576 $ 1,573 $ 1,581 $ 105 MMDA & Savings 1,220 1,174 1,149 1,063 977 243 Core Transaction Deposits 2,906 2,794 2,725 2,636 2,558 348 Time < $100,000

  70. Slide 70: Core Transaction Deposits

    Core Transaction Deposits 55 Geographic Diversity 3Q 10 3Q 11 Core Transactions / Total Deposits (%) $ in millions 3Q11 3Q10 Eastern Tennessee Atlanta MSA 53.0 % 49.4 % North Georgia 45.2 40.2 Coastal Georgia Western NC 52.8 47.9 Gainesville MSA Gainesville MSA 54.3 48.7 Coastal GA 46.3 41.6 Western

  71. Slide 71: NPA Sale in 2Q10

    NPA Sale in 2Q10 56 Sold $103 Million NPA’s – With a $65 Million Capital Option and Warrant ƒ Completed sale on April 30, 2010 ƒ Accelerates disposition of the more illiquid assets CATEGORY (in millions) MARKETS (in millions) Commercial $ 29.4 Atlanta $ 10.7 Commercial Construction 11.3 Gainesville

  72. Slide 72: NPA Sale – Fair Value Accounting 2Q10

    NPA Sale – Fair Value Accounting 2Q10 57 Fair Value Accounting – Warrant / Option to Purchase Equity ƒ Increase to Capital Surplus - $39.8 million ƒ Pre-tax expense charge - $45.3 million; after-tax cost - $30.0 million ƒ GAAP Capital +$9.8million – Slight Negative to “Regulatory Capital” (DTA) (in

  73. Slide 73: Non-GAAP Reconciliation Tables

    Non-GAAP Reconciliation Tables 58 (in thousands except EPS) Operating Earnings to GAAP Earnings Reconciliation 3Q11 2Q11 3Q10 (1) Core net interest revenue reconciliation Core net interest revenue $ 59,281 $ 58,946 $ 60,014 Taxable equivalent adjustment (420) (429) (511) Net interest revenue (GAAP)

  74. Slide 74: Non-GAAP Reconciliation Tables

    Non-GAAP Reconciliation Tables 59 Operating Earnings to GAAP Earnings Reconciliation 3Q11 2Q11 3Q10 Net interest margin - pre credit reconciliation Net interest margin - pre credit 3.84 % 3.71 % 4.13 % Effect of interest reversals, lost interest, and carry costs of NPAs (.29) (.30) (.56) Net interes

  75. Slide 75: Analyst Coverage

    Analyst Coverage "= FBR Capital (Market Perform - Jul 28, 2011) ™ FIG Partners (Market Perform - Sep 15, 2011) ™ Guggenheim Securities, LLC (Neutral - Oct 18, 2011) ™ Keefe, Bruyette & Woods (Market Perform - Oct 13, 2011) ™ Macquarie Capital (USA) (Neutral - Oct 12, 2011) ™ Raymond James & Assoc. (

  76. Slide 76: United Community Banks, Inc.

    61 United Community Banks, Inc. Investor Presentation Third Quarter 2011 Copyright 2011 United Community Banks, Inc. All rights reserved.

United Community Banks — Q3 2011 Earnings Presentation on 6ix