United Community Banks, Inc. · NYSE:UCB
United Community Banks — Q1 2022 Earnings Presentation
26 slides from United Community Banks's earnings presentation, Apr 19, 2022
Slide 1: 1Q22 Investor Presentation
1Q22 Investor Presentation April 19, 2022
Slide 2: Disclosures: Cautionary Statement
Disclosures CAUTIONARY STATEMENT This communication contains -looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words
Slide 3: Disclosures: Non-GAAP Measures
Disclosures NON-GAAP MEASURES This Investor Presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles . This financial information includes certain operating performance measures, which exclude merger-related and other ch
Slide 4: United Community Banks, Inc. Company Overview
United Community Banks, Inc. Company Overview Committed to Service Since 1950 $24.4 $14.3 BILLION IN BILLION IN TOTAL ASSETS TOTAL LOANS Regional Full Service Branch Network National Navitas and SBA Markets $4.6 $21.1 BILLION IN BILLION IN AUA TOTAL DEPOSITS 100 BEST BANKS IN Banking Offices 12.5% A
Slide 5: 1Q22 Highlights
$0.43 6.8% Diluted earnings per share Return on common equity - GAAP $0.50 - GAAP 11.0% 1Q22 Highlights Diluted earnings per share Return on tangible common - operating (1) equity - operating (1) Diluted Earnings Per Share Return on Average Assets $0.82 $0.83 1.62% 1.65% 0.78% 9.4% $0.55 $0.64 $0.50
Slide 6: Long-Term Financial Performance & Shareholder Return
Long-Term Financial Performance & Shareholder Return (1) (1) ROA - Operating ROTCE - Operating 1.51% 17.33% 1.40% 1.42% 15.81% 15.69% 12.24% 1.09% 1.07% 12.02% 1.06% 11.86% 11.00% 0.98% 10.24% 0.89% 2015 2016 2017 2018 2019 2020 2021 1Q22 2015 2016 2017 2018 2019 2020 2021 1Q22 UCBI KRX UCBI KRX Per
Slide 7: Footprint Focused on High-Growth MSAs in Southeast
Footprint Focused on High-Growth MSAs in Southeast Projected Population Growth (2) 2022 2027 (%) 4.9% 3.2% National Avg. Projected Household Income Growth (2) 2022 2027 (%) 11.9% 12.1% National Avg. Median Household Income (2) ($ in thousands) 72.5 67.9 United MSA Presence National Avg. (1) Includes
Slide 8: Outstanding Deposit Franchise
Outstanding Deposit Franchise 1Q22 Total Deposits 21.1 billion Time Total deposits were up $2.8 billion from Savings 8% 4Q21 and up $5.1 billion YOY 7% DDA Excluding Reliant, 1Q22 total deposits 38% grew $310 million, or 6.8% annualized 25% Excluding Reliant and Aquesta, total MMDA deposits were up
Slide 9: Well Diversified Loan Portfolio
9 Well Diversified Loan Portfolio Quarter Highlights 1Q22 Total Loans $14.3 billion Loans, excluding PPP and Reliant loans, increased $277 million, or 9.4% annualized Residential Construction Manufactured Housing Sold $45.6 million of out of market Reliant loans Home Equity 3% 2% Strong organic grow
Slide 10: Deposit Growth Creates Remix Opportunity
10 Deposit Growth Creates Remix Opportunity $ in billions $25.0 Loans and Deposits 97% $20.0 $21.1 $18.2 $16.9 87% $15.0 $16.0 $16.3 $0.9 $0.2 $0.1 $14.3 $0.5 $10.0 77% $11.8 $10.8 $10.9 $11.0 73% 70% $5.0 67% 68% 66% 64% $0.0 57% Loans Deposits Loans Deposits Loans Deposits Loans Deposits Loans Dep
Slide 11: Capital
Capital Regulatory ratios declined as expected primarily due to closing the Reliant acquisition Quarterly dividend of $0.21 per share, an increase of 11% YOY Unrealized securities losses in OCI increased by $153 million to $177 million in 1Q22 There were no share repurchases during 1Q22 *1Q22 regula
Slide 12: Net Interest Revenue / Margin
(1) Net Interest Revenue / Margin $ in millions $163.8 0.15% 0.06% 0.03% 2.97% $132.1 $137.6 (0.02%) (0.06%) 2.81% (%) 3.22% 2.97% 2.81% 2.85% 2.90% 2.66% 4Q NIM Liquidity Higher Interest Loan PPP Fees Reliant 1Q NIM 1Q21 4Q21 1Q22 Investment Rates / Mix / Accretion Acquisition Net Interest Revenue
Slide 13: Noninterest Income
Noninterest Income $ in millions Linked Quarter Fees up $1.8 million $44.7 $1.0 Mortgage fees up $5.2 million from 4Q21 $40.1 primarily due to a $6.4 million increase in the $39.0 mark on the MSR asset $2.4 $37.2 $35.8 $3.2 Rate locks were up with $757 million compared to $3.8 $695 million in 4Q21 $
Slide 14: Disciplined Expense Management
Disciplined Expense Management $ in millions $119.3 Linked Quarter $110.3 $109.2 GAAP and operating expenses increased 9.2% and 11.2%, respectively $99.2 $95.2 $95.5 $94.5 $96.7 $95.3 Primary reason for 1Q increase is due to the $93.7 inclusion of Reliant expenses 62.1% Efficiency ratio improved to
Slide 15: Credit Quality
Credit Quality Net Charge-Offs as % of Average Loans 0.20% 1Q22 net charge-offs of $2.98 0.15% million, or 0.08% of average loans, annualized 0.10% 0.09% 0.08% 0.05% 0.05% 0.02% 0.01% 0.00% -0.01% -0.02% -0.05% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Provision for Credit Losses & NCOs ($ in millions) Pro
Slide 16: Higher-Risk Loan Trends
Higher-Risk Loan Trends Special Mention & Substandard Accruing Loans as a % of Total Loans 3.5% 3.2% 3.2% Special mention loans decreased by 3.0% 2.5% 2.6% 0.50% (from $304 million in 4Q21 to $298 2.5% 2.1% million in 1Q22, a decrease of $6 million) 2.0% 1.5% Substandard, but still accruing loans, 1
Slide 17: ACL Walk Forward
ACL Walk Forward $18,324 $146,369 $12,737 $3,373 ($000) $116 $1,825 ($552) $113,524 ($2,978) 4Q21 ACL Loan Growth Reserve for NCOs Specific Reserve Model / Forecast Reliant Reliant 1Q22 ACL Unfunded Changes Day 1 PCD Day 2 Non PCD Commitments Credit Allowance Double Dip (net of Reliant) Note: ACL in
Slide 18: Exhibits
1Q22 INVESTOR PRESENTATION Exhibits
Slide 19: Blended Cash and Securities Yield
19 Blended Cash and Securities Yield $ in billions Cash and Securities $8.0 $1.7 $7.0 $2.2 $6.0 $1.7 $1.3 $5.0 $1.2 $1.5 $4.0 $0.9 $3.0 $1.2 $6.4 $0.4 $5.3 $5.7 $4.9 $2.0 $4.3 $3.6 $2.5 $2.4 $3.1 $1.0 $0.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Investments ($) Fed Funds & Interest Earning Cash
Slide 20: Interest Rate Sensitivity
20 Interest Rate Sensitivity Net Interest Income Sensitivity 11.06% 5.39% 7.31% 4.47% 1.30% 1.30% +25 bps +100 bps +200 bps % Change - Shocks % Change - Ramps 4.47% asset sensitivity in +100 bps ramp One 25 bps Fed rate hike is worth approximately 4 bps to net interest margin 22% Beta assumed for di
Slide 21: Navitas Performance
Navitas Performance $ in millions 25.8% $200 24.7% $213 $204 25.0% 22.6% 22.9% $186 24.3% $181 19.7% $150 19.7% 20.0% $145 $148 $134 $126 15.0% $100 9.45% 9.19% 9.12% 9.08% 9.08% 9.01% 8.89% 8.85% $94 9.4% 10.0% 8.9% 9.39% $50 5.0% $0 0.0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Originations $
Slide 22: Expanding Mortgage Throughout the Footprint
Expanding Mortgage Throughout the Footprint $ in millions $1,200 6.0% 5.4% 5.1% 4.8% $1,000 5.0% 4.3% $993 4.4% $910 3.9% $800 3.7% 4.0% $801 $802 $792 $731 $757 $702 $695 $600 3.0% 2.8% $400 2.0% 2.0% $395 $402 $410 $407 $336 $320 $200 $259 $285 1.0% $207 $0 0.0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 23: Selected Segments Senior Care
Selected Segments Senior Care $ in millions $535 $537 $549 $520 $518 $486 $503 $511 $500 $463 1% 6% $400 20% $300 $200 49% $170 $170 $169 25% $172 $144 $100 $100 $34 $64 $73 $73 $66 $13 $11 $13 $46 $48 $7 $21 $0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Nonaccruals $ Substandard Accruing $ Specia
Slide 24: Non-GAAP Reconciliation Tables
24 Non-GAAP Reconciliation Tables $ in thousands, except per share data 24
Slide 25: Non-GAAP Reconciliation Tables
25 Non-GAAP Reconciliation Tables $ in thousands, except per share data 25
Slide 26: Glossary
Glossary ACL — Allowance for Credit Losses ALLL — Allowance for Loan Losses AUA — Assets Under Administration BPS — Basis Points C&l— Commercial and Industrial C&D — Construction and Development CECL — Current Expected Credit Losses CET1 — Common Equity Tier 1 Capital CRE — Commercial Real Estate CS
United Community Banks — Q1 2022 Earnings Presentation on 6ix