United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q3 2012 Earnings Presentation

61 slides from United Community Banks's earnings presentation, Oct 25, 2012

  1. Slide 1: United Community Banks, Inc. Third Quarter 2012 Investor Presentation

    Jimmy C. Tallent President & CEO H. Lynn Harton Chief Operating Officer Rex S. Schuette EVP & CFO rex_schuette@ucbi.com (706) 781-2266 David P. Shearrow EVP & Chief Risk Officer United Community Banks, Inc. Third Quarter 2012 Investor Presentation October 25, 2012

  2. Slide 2: Cautionary Statement

    2 Cautionary Statement This news release contains forward‐looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of f

  3. Slide 3: Non-GAAP Measures

    3 Non-GAAP Measures This presentation also contains 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, core net i

  4. Slide 4: United at a Glance

    4 United at a Glance Founded in 1950 27 Banks and 104 Offices Third‐largest bank holding company in Georgia Headquartered in Blairsville, Georgia with 104 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina and east Tennessee 1,592 employees Deposit Market Shar

  5. Slide 5: Highlights Third Quarter

    5 Highlights Third Quarter ¾Improving Quarterly Results ¾ Net Income of $10.6 million, or 13 cents per share ¾ Fifth quarterly profit in past six quarters ¾ Core earnings (pre-tax, pre-credit) of $29.9 million ¾Modest Loan Growth, Both Linked Quarter and Year Ago ¾ Increased lending opportunities ¾S

  6. Slide 6: Financial Review

    6 FINANCIAL REVIEW

  7. Slide 7: Core Earnings Summary

    7 7 Core Earnings Summary (in thousands) Variance - Increase / (Decrease) 3Q12 2Q12 4Q11 3Q11 Net Interest Revenue $ 57,371 $ 535 $ (1,679) $ (1,910) Fee Revenue 13,003 239 1,561 1,694 Gross Revenue 70,374 774 (118) (216) Operating Expense (Excl OREO) 40,523 (789) (3,320) (3,570) Pre-Tax, Pre-Credit

  8. Slide 8: Fee Revenue - Core

    8 8 Fee Revenue - Core (in thousands) Variance - Increase / (Decrease) 3Q12 2Q12 4Q11 3Q11 Overdraft Fees $ 3,362 $ 130 $ (175) $ (179) Debit Card Fees 3,063 (179) 94 (239) Other Service Charges 1,271 (71) 529 580 Total Service Charges and Fees 7,696 (120) 448 162 Mortgage Loan & Related Fees 2,800

  9. Slide 9: Operating Expenses - Core

    9 9 Operating Expenses - Core (in thousands) Variance - Increase / (Decrease) 3Q12 2Q12 4Q11 3Q11 Salaries & Employee Benefits $ 22,364 $ (786) $ (3,174) $ (3,284) Communications & Equipment 3,254 43 125 (30) Occupancy 3,539 - (433) (255) FDIC Assessment 2,537 (8) (62) (66) Advertising & Public Rela

  10. Slide 10: Net Operating Income

    10 10 Net Operating Income (in thousands) Variance - Increase / (Decrease) (1) 3Q12 2Q12 4Q11 3Q11 Core Earnings (Pre-Tax, Pre-Credit) $ 29,851 $ 1,563 $ 3,202 $ 3,354 Provision for Loan Loss 15,500 (2,500) 1,500 (20,500) NON-CORE FEE REVENUE: Hedge Ineffectiveness Gaines (Losses) 608 788 295 33 Sec

  11. Slide 11: Net Income

    11 11 Net Income (in thousands) Variance - Increase / (Decrease) 3Q12 2Q12 4Q11 3Q11 Net Income $ 10,568 $ 4,069 $ 667 $ 21,907 Preferred Stock Dividends (3,041) 9 16 22 Net Income Avail to Common Shareholders $ 7,527 $ 4,060 $ 651 $ 21,885 Net Income Per Share $ .13 $ .07 $ .01 $ .38 Tangible Book

  12. Slide 12: Net Interest Margin

    12 12 Net Interest Margin NIM Characteristics 4.5% 3.79% 3.77% 3.76% 3.79% „ Margin – Linked Quarter 3.62% +17 bps vs. 2Q12 3.0% 3.55% 3.51% 3.53% 3.43% 3.60% ‰ Smaller balance sheet ‰ Higher securities yields, offset by loan pricing compression 1.5% ‰ Lowered core and CD deposit pricing .0% „ Outlo

  13. Slide 13: Key Drivers of Net Interest Revenue / Margin

    13 13 Key Drivers of Net Interest Revenue / Margin 6.0 5.62 5.49 Offsetting Impacts 5.39 5.25 5.0 5.18 on Margin „ Loan and 4.0 securities pricing under 3.0 2.70 pressure 2.47 2.40 2.04 2.0 2.15 „ Deposit rates .86 continue to 1.0 .70 .60 decline .53 .49 3Q11 4Q11 1Q12 2Q12 3Q12 Loan Yields Securiti

  14. Slide 14: Deposit Pricing, Excluding Brokered Deposits

    14 14 Deposit Pricing, Excluding Brokered Deposits .50 .46 .44 .40 .36 .32 .30 .30 .30 .30 .26 .24 .23 .22 .20 .21 .17 .16 .14 .10 3Q11 4Q11 1Q12 2Q12 3Q12 CDS MMDA NOW Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each quarter

  15. Slide 15: Customer Deposit Mix Improving

    15 15 Customer Deposit Mix Improving (in millions) 3Q12 56% $5.6B Public Funds 3Q12 2Q12 3Q11 4Q08 12% Demand & Time Demand / NOW $ 1,796 $ 1,735 $ 1,686 $ 1,457 >$100k NOW MMDA / Savings 1,342 1,330 1,220 630 12% 32% Core Transaction 3,138 3,065 2,906 2,087 Time <$100k MMDA & 8% Growth - $232 Milli

  16. Slide 16: Core Deposit Growth – Category and Market

    16 16 Core Deposit Growth – Category and Market (in millions, excluding public) Growth YTD Last 12 CATEGORY 3Q12 3Q12 Months Demand $ 54.2 $ 197.9 $ 206.7 MM Accounts 8.4 90.3 99.0 Savings 3.3 24.0 22.7 NOW 6.1 (76.7) (96.8) Total Categories $ 72.0 $ 235.5 $ 231.6 Percent Growth (Annualized) 9 % 11

  17. Slide 17: Capital Ratios

    17 17 Capital Ratios Well- Capitalized SEP '12 JUN '12 MAR '12 Bank Tier 1 RBC 6 % 14.5 % 14.4 % 13.7 % Total RBC 10 15.7 15.7 15.0 Leverage 5 9.9 9.2 9.0 Holding Company Tier 1 RBC 6 14.3 14.3 13.7 Total RBC 10 15.8 16.0 15.4 Leverage 5 9.8 9.2 8.9 Tier I Common RBC 8.8 8.8 8.3 Tangible Equity to A

  18. Slide 18: Loan Portfolio & Credit Quality

    18 LOAN PORTFOLIO & CREDIT QUALITY

  19. Slide 19: Loan Portfolio (total $4.14 billion)

    19 Loan Portfolio (total $4.14 billion) Geographic Diversity By Loan Type $ in millions North Georgia 42% $ 1,383 Atlanta MSA $ 1,257 36% $1.17B Residential Mortgage 28% 30% Western North Carolina 24% $ 579 Coastal Georgia 18% $2.44B East Tennessee Commercial $ 380 59% $ 283 Gainesville 12% $ 256 6%

  20. Slide 20: New Loans Funded – Category and Market

    20 New Loans Funded* – Category and Market (in millions) CATEGORY 3Q12 2Q12 MARKET 3Q12 2Q12 Commercial RE: Atlanta $ 43.3 $ 35.5 Owner Occupied $ 21.6 $ 25.5 Coastal Georgia 21.4 9.8 Income Producing 21.7 7.1 N. Georgia 36.2 21.9 Total Commercial RE 43.3 32.6 Tennessee 17.5 9.9 Commercial C & I 20.

  21. Slide 21: New Loan Commitments – Category and Market

    21 21 New Loan Commitments* – Category and Market (in millions) CATEGORY 3Q12 2Q12 MARKET 3Q12 2Q12 Commercial RE: Atlanta $ 71.6 $ 54.7 Owner Occupied $ 23.0 $ 28.0 N. Georgia 57.4 35.0 Income Producing 22.7 7.7 Coastal Georgia 31.7 11.4 Total Commercial RE 45.7 35.7 Tennessee 24.8 14.8 Commercial

  22. Slide 22: Credit Quality

    22 22 Credit Quality (in millions) 3Q12 2Q12 1Q12 4Q11 3Q11 (1) Net Charge-offs $ 20.6 $ 18.9 $ 15.9 $ 20.6 $ 17.5 as % of Average Loans (1) 1.99 % 1.85 % 1.55 % 1.99 % 1.68 % Allowance for Loan Losses $ 107.6 $ 112.7 $ 113.6 $ 114.5 $ 146.1 as % of Total Loans 2.60 % 2.74 % 2.75 % 2.79 % 3.55 % as

  23. Slide 23: NPL Inflow Trends

    23 23 NPL Inflow Trends Quarterly NPL Inflows Since 2009 ($mm) $193.3 84.2% $200.0 $177.7 Decline $174.8 $174.9 $155.0 from Peak $150.0 $139.0 $119.8 $103.4 $100.0 $81.0 $54.7 $45.7 $50.0 $35.9 $32.4 $30.5 $29.4 $0.0 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

  24. Slide 24: Net Charge-offs by Loan Category

    24 24 Net Charge-offs by Loan Category (in thousands) 3Q12 % of Average Loans (Annualized) % of Avg (1) Total Loans 2Q12 1Q12 4Q11 3Q11 Commercial (Sec. by RE): Owner Occupied $ 6,192 3.56 % .46 % .87 % 1.16 % .35 % Income Producing 1,982 .70 1.75 .70 .57 .72 Total Comm (Sec. by RE) 8,174 1.79 .95 .

  25. Slide 25: Net Charge-offs by Market

    25 25 Net Charge-offs by Market (in millions) 3Q12 % of Average Loans (Annualized) % of Avg (1) Total Loans 2Q12 1Q12 4Q11 3Q11 North Georgia $ 6,451 1.84 % 3.58 % 2.56 % 2.70 % 2.16 % Atlanta MSA 9,344 3.02 .75 .89 1.37 .94 North Carolina 1,674 1.15 2.52 1.14 2.10 2.31 Coastal Georgia 2,486 2.67 .2

  26. Slide 26: NPAs by Loan Category and Market

    26 26 NPAs by Loan Category and Market (in thousands) 3Q12 3Q12 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY MARKETS Commercial (sec. by RE): North Georgia $ 72,211 $ 14,582 $ 86,793 Owner Occupied $ 14,140 $ 7,170 $ 21,310 Atlanta MSA 21,349 5,926 27,275 Income Producing 11,756 1,597 13,

  27. Slide 27: Commercial Loans (total $2.44 billion)

    27 Commercial Loans (total $2.44 billion) By Loan Type Atlanta MSA Geographic Diversity $969 7% $ in millions 19% Comm 42% C&I Const $.46B $.16B North Georgia 36% $ 679 28% 30% Income Producing 46% $.69B Owner Occupied $1.12B 24% Western North Carolina Coastal Georgia 18% $ 265 $ 193 Gainesville MSA

  28. Slide 28: Commercial Real Estate (by loan type)

    28 28 Commercial Real Estate (by loan type) September 30, 2012 Owner Income Portfolio Characteristics (in millions) Occupied Producing Total Percent Office Buildings $ 300 $ 202 $ 502 28 % Retail 113 149 262 14 ƒ 61.9% owner-occupied Small Warehouses/Storage 114 70 184 10 Multi-Residential/Other Pro

  29. Slide 29: Commercial Construction (by loan type)

    29 29 Commercial Construction (by loan type) September 30, 2012 (in millions) Amount Percent Land Develop - Vacant (Improved) $ 64 40 % Raw Land - Vacant (Unimproved) 48 30 Portfolio Characteristics Commercial Land Development 23 14 Office Buildings 5 3 ƒ Average loan size: $438k Churches 5 3 Wareho

  30. Slide 30: Residential Mortgage (total $1.17 billion)

    30 Residential Mortgage (total $1.17 billion) By Loan Type North Georgia Geographic Diversity $ in millions $468 Home Equity 29% $.34B 42% Western North Carolina Avg loan size $45k 36% $281 30% Atlanta MSA 24% Mortgage $183 71% $.83B East Tennessee 18% Coastal Georgia Gainesville MSA Avg loan size $

  31. Slide 31: Residential Construction (total $389 million)

    31 Residential Construction (total $389 million) By Loan Type North Georgia Geographic Diversity $184 $ in millions 11% 49% Raw $41 42% 50% Western North Carolina 18% Lot Developing $196 $71 35% $85 28% Atlanta MSA 11% Sold $68 $37 10% 21% Spec $44 Coastal Georgia Gainesville MSA East Tennessee 14%

  32. Slide 32: Residential Construction – Total Company

    32 Residential Construction – Total Company 3Q12 vs. (in millions) 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 71 $ 78 $ 86 $ 88 $ 97 $ (26) Raw Land 41 45 57 61 60 (19) Lot Loans 196 203 204 207 216 (20) Total 308 326 347 356 373 (65) Construction Loans Spec 44 49 57 59 64 (20) Sold

  33. Slide 33: Appendix

    33 APPENDIX

  34. Slide 34: Experienced Proven Leadership

    34 34 Experienced Proven Leadership Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 38 Lynn Harton Chief Operating Officer 2012 29 Rex Schuette Chief Financial Officer 2001 35 David Shearrow Chief Risk Officer 2007 31 Craig Metz Marketing 2002 20 Ray Skinner Retail Banking 2012 22 Re

  35. Slide 35: Business and Operating Model

    35 35 Business and Operating Model Twenty-seven “community banks” ▫ Local CEOs with deep roots in their communities ▫ Resources of $6.7 billion bank Service is point of differentiation ▫ #1 in Customer Satisfaction according to Customer Service Profiles ▫ J.D. Power Customer Service Champion for 201

  36. Slide 36: Robust Demographics (fast growing markets)

    36 36 Robust Demographics (fast growing markets) Population Growth (%) Population Actual Projected 1 Markets (in thousands) 2000 - 2011 2011 - 2016 North Georgia 386 21 % 4% Atlanta MSA 5,321 25 5 Gainesville MSA 181 30 4 Coastal Georgia 385 15 5 Western North Carolina 441 15 5 East Tennessee 862 14

  37. Slide 37: Market Share Opportunities

    37 37 Market Share Opportunities Excellent growth prospects Market Deposits United Deposit Markets (in billions) (1) Deposits (2) Banks Offices Share (1) (1) Rank North Georgia $ 6.4 $ 2.0 11 22 32 % 1 Atlanta MSA 50.2 2.0 10 38 4 7 Gainesville MSA 2.6 .3 1 5 12 5 Coastal Georgia 7.3 .3 2 8 4 8 West

  38. Slide 38: Leading Demographics

    38 38 Leading Demographics 2011 ‐ 2016 Total Assets Population (1) Rank Ticker Company State ($B) Growth(2) 1 CFR Cullen/Frost Bankers, Inc. TX 20.8 8.38 2 IBOC International Bancshares Corporation TX 11.6 6.99 3 HBHC Hancock Holding Company MS 18.9 6.38 4 PB Prosperity Bancshares, Inc. TX 10.7 6.23

  39. Slide 39: Proactively Addressing Credit Environment

    39 39 Proactively Addressing Credit Environment 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

  40. Slide 40: Lending – Credit Summary

    40 40 Lending – Credit Summary (in millions) ƒ Legal lending limit $162 ƒ House lending limit 20 Project lending limit 12 ƒ Top 25 relationships 370 Regional credit review – Standard underwriting

  41. Slide 41: Performing Classified Loans

    41 41 Performing Classified Loans (in millions) LOANS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 Commercial (Sec. by RE): Owner Occupied $ 77 $ 54 $ 78 $ 79 $ 69 Income Producing 49 94 56 64 65 Total Comm (Sec. by RE) 126 148 134 143 134 Commercial & Industrial 19 16 17 16 25 Commercial Construction 27 38

  42. Slide 42: Business Mix Loans (at quarter-end)

    42 42 Business Mix Loans (at quarter-end) (in millions) 3Q12 vs. LOANS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Commercial (Sec. by RE): Owner Occupied $ 1,126 $ 1,140 $ 1,137 $ 1,111 $ 1,037 $ 89 Income Producing 693 697 706 711 734 (41) Total Comm (Sec. by RE) 1,819 1,837 1,843 1,822 1,771 48 Com

  43. Slide 43: Loans – Markets Served (at quarter-end)

    43 43 Loans – Markets Served (at quarter-end) (in millions) 3Q12 vs. LOANS BY MARKET 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 North Georgia $ 1,383 $ 1,387 $ 1,408 $ 1,426 $ 1,478 $ (95) Atlanta MSA 1,257 1,252 1,239 1,220 1,192 65 North Carolina 579 576 588 597 607 (28) Coastal Georgia 380 369 366 346 316 64

  44. Slide 44: Residential Construction – North Georgia

    44 44 Residential Construction – North Georgia (in millions) 3Q12 vs. 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 33 $ 39 $ 44 $ 44 $ 51 $ (18) Raw Land 17 18 26 26 25 (8) Lot Loans 111 113 113 118 124 (13) Total 161 170 183 188 200 (39) Construction Loans Spec 8 9 12 12 15 (7) Sold 1

  45. Slide 45: Residential Construction – Atlanta MSA

    45 45 Residential Construction – Atlanta MSA (in millions) 3Q12 vs. 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Land Loans Developing Land $ 14 $ 14 $ 17 $ 17 $ 19 $ (5) Raw Land 9 9 13 14 15 (6) Lot Loans 18 22 22 22 22 (4) Total 41 45 52 53 56 (15) Construction Loans Spec 19 24 27 27 28 (9) Sold 8 7 7 6 8 - Tot

  46. Slide 46: Business Mix Loans (at year-end)

    46 46 Business Mix Loans (at year-end) (in millions) 2011 2010 2009 2008 2007 LOANS BY CATEGORY Commercial (Sec. by RE) $ 1,822 $ 1,761 $ 1,779 $ 1,627 $ 1,476 Commercial & Industrial 428 441 390 410 418 Commercial Construction 164 297 363 500 527 Total Commercial 2,414 2,499 2,532 2,537 2,421 Resid

  47. Slide 47: Loans – Markets Served (at year-end)

    47 47 Loans – Markets Served (at year-end) (in millions) LOANS BY MARKET 2011 2010 2009 2008 2007 North Georgia $ 1,426 $ 1,689 $ 1,884 $ 2,040 $ 2,060 Atlanta MSA 1,220 1,310 1,435 1,706 2,002 North Carolina 597 702 772 810 806 Coastal Georgia 346 335 405 464 416 Gainesville MSA 265 312 390 420 399

  48. Slide 48: TDRs by Loan Type

    48 TDRs by Loan Type (in thousands) (1) LOAN TYPE Accruing Non-Accruing Total TDRs As of September 30, 2012 Commercial (Sec by RE) $ 72,042 $ 8,530 $ 80,572 Commercial & Industrial 6,960 239 7,199 Commercial Construction 24,016 11,850 35,866 Total Commercial 103,018 20,619 123,637 Residential Mortga

  49. Slide 49: NPAs by Loan Category, Market, and Activity

    49 49 NPAs by Loan Category, Market, and Activity (1) Credit Quality Third Quarter 2012 Second Quarter 2012 First Quarter 2012 Non-performing Foreclosed Total Non-performing Foreclosed Total Non-performing Foreclosed Total (in thousands) Loans Properties NPAs Loans Properties NPAs Loans Properties N

  50. Slide 50: Net Charge-offs by Category and Market

    50 50 Net Charge-offs by Category and Market (1) Credit Quality Third Quarter 2012 Second Quarter 2012 First Quarter 2012 Net Charge- Net Charge- Net Charge- Offs to Offs to Offs to Net Average Net Average Net Average (2) (2) (2) (in thousands) Charge-Offs Loans Charge-Offs Loans Charge-Offs Loans N

  51. Slide 51: Net Charge-offs by Category and Market – Asset Disposition Plan

    51 51 Net Charge-offs by Category and Market Asset Disposition Plan as of March 31, 2011 (1) Credit Quality - Net Charge-Offs First Quarter 2011 Asset Disposition Plan Bulk Loan Sale (2) First Quarter Performing Nonperforming Other Bulk Loan Foreclosure Other Net 2011 Net Charge- (in thousands) Loan

  52. Slide 52: Credit Quality – Bulk Loan Sale Summary

    52 52 Credit Quality – Bulk Loan Sale Summary 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 (

  53. Slide 53: Margin – Credit Costs

    53 53 Margin – Credit Costs .30% .26% .25% .24% Credit Costs .05% .23% Impacting Margin .07% .05% .20% .19% .19% „ Historically 8 to 12 bps .03% .03% .15% .13% „ Cost 3Q12 vs. Historical – .07% .12% 7 bps (annual earnings impact .10% .10% .10% of $4.4 million) .05% .10% „ 1 bps = $635 thousand in NI

  54. Slide 54: Loans / Deposits - Liquidity

    54 54 Loans / Deposits - Liquidity (in millions) Variance 3Q12 2Q12 3Q11 vs 2Q12 vs 3Q11 Loans $ 4,138 $ 4,119 $ 4,110 $ 19 $ 28 Core (DDA, MMDA, Savings) $ 3,138 $ 3,065 $ 2,906 $ 73 $ 232 Public Funds 644 659 635 (15) 9 CD's 1,817 1,887 2,254 (70) (437) Total Deposits (excl Brokered) $ 5,599 $ 5,6

  55. Slide 55: Wholesale Borrowings - Liquidity

    55 55 Wholesale Borrowings - Liquidity (in millions) Unused Variance Capacity 3Q12 2Q12 3Q11 vs 2Q12 vs 3Q11 Wholesale Borrowings (1) Brokered Deposits $ 1,436 $ 233 $ 211 $ 210 $ 22 $ 23 FHLB 1,054 50 125 41 (75) 9 Fed Funds 125 - - - - - Other Wholesale - 53 54 103 (1) (50) Total $ 2,615 $ 336 $ 3

  56. Slide 56: Business Mix – Deposits at quarter-end

    56 56 Business Mix – Deposits at quarter-end (in millions) 3Q12 vs. DEPOSITS BY CATEGORY 3Q12 2Q12 1Q12 4Q11 3Q11 3Q11 Demand & Now $ 1,796 $ 1,735 $ 1,722 $ 1,674 $ 1,686 $ 110 MMDA & Savings 1,342 1,330 1,331 1,228 1,220 122 Core Transaction Deposits 3,138 3,065 3,053 2,902 2,906 232 Time < $100,0

  57. Slide 57: Core Transaction Deposits

    57 57 Core Transaction Deposits Geographic Diversity Core Transactions / Total Deposits (%) 3Q 11 3Q 12 3Q12 3Q11 $ in millions Coastal GA 62.8 % 46.3 % Eastern Tennessee $163 Gainesville MSA 61.0 54.3 $177 North Carolina 58.8 52.8 Coastal Georgia $177 Atlanta MSA 58.5 53.0 $191 East TN 58.6 53.4 Ga

  58. Slide 58: Non GAAP Reconciliation Tables

    58 58 Non GAAP Reconciliation Tables (in thousands except EPS) Operating Earnings to GAAP Earnings Reconciliation 3Q12 2Q12 1Q12 4Q11 3Q11 Core net interest revenue reconciliation Core net interest revenue $ 57,371 $ 56,836 $ 58,864 $ 59,050 $ 59,281 Taxable equivalent adjustment (419) (444) (446) (

  59. Slide 59: Non GAAP Reconciliation Tables

    59 59 Non GAAP Reconciliation Tables Operating Earnings to GAAP Earnings Reconciliation 3Q12 2Q12 1Q12 4Q11 3Q11 Net interest margin - pre credit reconciliation Net interest margin - pre credit 3.79 % 3.62 % 3.76 % 3.77 % 3.79 % Effect of interest reversals, lost interest, and carry costs of NPAs (.

  60. Slide 60: Analyst Coverage

    ‘Analyst Coverage ™ FIG Partners (Market Perform - Aug 14, 2012) ™ Keefe, Bruyette & Woods (Market Perform - Oct 8, 2012) ™ Raymond James & Assoc. (Market Perform - Sep 26, 2012) ™ Sandler O'Neill & Partners (Hold, Oct 3, 2012) ™ Stephens, Inc. (Equal Weight - Aug 2, 2012) ™ SunTrust Robinson Humphr

  61. Slide 61: United Community Banks, Inc.

    61 United Community Banks, Inc. Investor Presentation Third Quarter 2012 Copyright 2012 United Community Banks, Inc. All rights reserved.

United Community Banks — Q3 2012 Earnings Presentation on 6ix