United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q2 2019 Earnings Presentation
24 slides from United Community Banks's earnings presentation, Jul 23, 2019
Slide 1: 2nd Quarter 2019 Investor Presentation
2 nd Quarter 2019 Investor Presentation July 23, 2019
Slide 2: Disclosures
Disclosures ucbi.com | 2 CAUTIONARY STATEMENT This Investor Presentation contains forward - looking statements, as defined by federal securities laws, including statements about United Community Banks, Inc . (“United”) and its financial outlook and business environment . These statements are based o
Slide 3: Who We Are - Snapshot of United Community Banks, Inc.
Who We Are - Snapshot of United Community Banks, Inc. ucbi.com | 3 United Community Bank 141 Branch locations 6 Loan Production Offices 5 Mortgage Loan Offices Market data as of July 19, 2019 1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating p
Slide 4: Our Goals
Our Goals ucbi.com | 4 We have a long - term mindset , building a company where great people can be successful and confident; they can have a career, not a job. We are here to help customers live better lives by providing better service to them. We listen , we provide great advice and we are respons
Slide 5: 2Q19 Highlights
$17.29 $18.93 $19.65 $13.25 $14.93 $15.38 2Q18 1Q19 2Q19 Book Value Per Share (2) Book Value (GAAP) Tangible Book Value (non-GAAP) (1) 2Q19 Highlights ucbi.com | 5 $0.49 $0.55 $0.55 $0.53 $0.56 $0.59 2Q18 1Q19 2Q19 Earnings Per Share GAAP Operating (1) 1.30% 1.44% 1.40% 1.39% 1.45% 1.50% 2Q18 1Q19 2
Slide 6: Net Interest Revenue / Margin
$108.5 $115.6 $117.8 2Q18 1Q19 2Q19 Net Interest Revenue / Margin ucbi.com | 6 (1) Net Interest Revenue Net Interest Margin 1) Net interest margin is calculated on a fully - taxable equivalent basis 3.90% 4.10% 4.12% » Net interest revenue increased $2.2 mm (2%) vs. 1Q19 and $9.3 mm (9%) vs. 2Q18 »
Slide 7: Valuable Deposit Mix
Valuable Deposit Mix ucbi.com | 7 33% 19% 22% 7% 19% 2Q19 Total Deposits $10.6 billion DDA MMDA Savings Time » 33% of deposits are Demand Deposits » UCBI cost of deposits up 3 bps to 0.65% in 2Q19 » UCBI cost of deposits significantly lower than KRX peer levels (62 bps in 1Q19 vs. KRX peers at 80 bp
Slide 8: Strong Core Transaction Deposit Growth
Strong Core Transaction Deposit Growth ucbi.com | 8 $6.957 $7.091 $7.399 4Q18 1Q19 2Q19 » Transaction accounts up $307 mm in 2Q19, $140 mm of which came from First Madison » Demand deposits up $119 mm from 1Q19, which drove the majority of 2Q19 core transaction growth* » Transaction accounts increas
Slide 9: Loans
Loans ucbi.com | 9 » Annualized linked quarter loan growth was $345 mm, or 16% » Excluding the impact of planned indirect auto runoff and the addition of First Madison, linked quarter loan growth was 9% annualized » Diversified portfolio, weighted towards C&I » Well within regulatory guidance on con
Slide 10: Noninterest Income
Noninterest Income ucbi.com | 10 $8.8 $9.2 $9.0 $5.6 $6.1 $7.1 $1.2 $1.3 $1.6 $5.3 $3.8 $5.3 $2.4 $1.3 $1.5 2Q18 1Q19 2Q19 Service Charges Other Brokerage Mortgage SBA $23.3 $21.0 $24.5 Linked Quarter » Fees up $3.5 mm » Mortgage fees up $1.6 mm driven mainly by higher production ($390 mm in 2Q19 ra
Slide 11: Expense Discipline
$76.9 $76.1 $81.8 $74.0 $75.3 $77.7 2Q18 1Q19 2Q19 57.9% 55.3% 57.3% 55.8% 54.8% 54.4% Expense Discipline ucbi.com | 11 $ in millions Efficiency Ratio (1) GAAP Operating (1) 1) See non - GAAP reconciliation table slides at the end of the exhibits for a reconciliation of operating performance measure
Slide 12: Credit Quality
Credit Quality ucbi.com | 12 0.07% 0.15% 0.11% 2Q18 1Q19 2Q19 Net Charge - Offs as % of Average Loans 0.20% 0.20% 0.21% 2Q18 1Q19 2Q19 Non - Performing Assets as % of Total Assets $1.80 $3.30 $3.25 2Q18 1Q19 2Q19 Provision for Credit Losses $ in millions 0.74% 0.73% 0.70% 2Q18 1Q19 2Q19 Allowance fo
Slide 13: Capital Ratios
Capital Ratios ucbi.com | 13 » All cash First Madison deal generally levered regulatory capital ratios » TCE increased slightly as a positive OCI mark offset goodwill resulting from the First Madison transaction » All regulatory capital ratios significantly above “well - capitalized” » Quarterly div
Slide 14: Key Strengths
Key Strengths ucbi.com | 14 » Culture and business model that attracts both bankers and potential acquisition partners » Positioned well in many of the South's fastest - growing markets » Superior customer service helps drive strong core deposit growth » Well - developed credit model that drives con
Slide 15: Acquisition of First Madison Bank & Trust
Acquisition of First Madison Bank & Trust ucbi.com | 15 Transaction Overview » Announced February 5, 2019 » Closed on May 1, 2019 » 100% cash » $52 million transaction value » 172% P/TBV » Strategic fill - in with a well - established, high - performing community bank Company Snapshot * » Assets: $2
Slide 16: United Community Banks Presentation Exhibits
United Community Banks Presentation Exhibits
Slide 17: Who We Are: Full-Service Regional Bank with a Strong Culture
Who We Are Full - Service Regional Bank with a Strong Culture Rooted in Sound Credit Underwriting & Growth ucbi.com | 17 Cultural Pillars Customer Service Is at Our Foundation High - Quality Balance Sheet » Underwriting conservatism and portfolio diversification » Top quartile credit quality perform
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 ucbi.com | 19 Fastest Growing Southeast MSAs (1) 2019 - 2024 Projected Population Growth 2019 Population 2024 Projected Median Household Income 1. Myrtle Beach, SC 9.66% 485,770 $55,203 2. Cape Coral, FL 8.46% 757,170 $62,988 3. Orlando, FL 8.13%
Slide 20: Commercial RE Diversification
21% 17% 11% 9% 10% 9% 6% 17% Commercial Real Estate - Income Producing % Outstanding Total Outstanding $1.9 billion Commercial RE Diversification – 6/30/2019 ucbi.com | 20 Outstanding Average Loan Size (in thousands ) » Commercial Construction $456 » Commercial RE: » Composite CRE 437 » Owner - Occu
Slide 21: Strong Credit Culture
Strong Credit Culture ucbi.com | 21 BUILT TO OUTPERFORM IN THE NEXT CYCLE 1 . Process Change » In 2014, centralized and streamlined consumer underwriting and related functions » Significantly strengthened commercial process for approvals and monitoring 2. Add Significant Talent » CEO with deep knowl
Slide 22: Non-GAAP Reconciliation Tables
Non - GAAP Reconciliation Tables ucbi.com | 22 $ in thousands, except per share data 2Q18 3Q18 4Q18 1Q19 2Q19 (1) (1) (1) (1) (1) Net Income Net income - GAAP 39,634$ 43,682$ 45,137$ 44,262$ 44,085$ Merger-related and other charges 2,873 592 1,234 739 4,087 Tax benefit on merger-related and other ch
Slide 23: Non-GAAP Reconciliation Tables
Non - GAAP Reconciliation Tables ucbi.com | 23 $ in thousands, except per share data 2Q18 3Q18 4Q18 1Q19 2Q19 (1) (1) (1) (1) (1) Return on Tangible Common Equity Return on common equity - GAAP 11.20 % 11.96 % 12.08 % 11.85 % 11.45 % Effect of merger-related and other charges 0.77 0.13 0.17 0.15 0.8
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