United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q2 2012 Earnings Presentation

61 slides from United Community Banks's earnings presentation, Jul 26, 2012

  1. Slide 1: Second Quarter 2012 Investor Presentation

    Jimmy C. Tallent President & CEO Rex S. Schuette EVP & CFO rex_schuette@ucbi.com (706) 781-2266 David P. Shearrow EVP & CRO United Community Banks, Inc. Second Quarter 2012 Investor Presentation July 26, 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 1,614 employees Deposit Market Shar

  5. Slide 5: Highlights Second Quarter

    5 Highlights Second Quarter ¾ Improving Quarterly Results ¾ Net Income of $6.5 million, or 6 cents per share ¾ Fourth quarterly profit in past five quarters ¾ Core earnings (pre-tax, pre-credit) of $28.3 million ¾ Strong Core Transaction Deposit Growth ¾ Year-to-date up 11% annualized ¾ Building cus

  6. Slide 6: Loan Portfolio & Credit Quality

    6 LOAN PORTFOLIO & CREDIT QUALITY

  7. Slide 7: Loan Portfolio (total $4.12 billion)

    7 Loan Portfolio (total $4.12 billion) Geographic Diversity By Loan Type $ in millions North Georgia 42% $ 1,387 Atlanta MSA $ 1,252 36% $1.13B Residential Mortgage 27% 30% Western North Carolina 24% $ 576 Coastal Georgia 18% $2.46B East Tennessee Commercial $ 369 60% $ 276 Gainesville 12% $ 259 6%

  8. Slide 8: Commercial Loans (total $2.46 billion)

    8 Commercial Loans (total $2.46 billion) By Loan Type Atlanta MSA Geographic Diversity $981 7% $ in millions 18% Comm 42% C&I Const $.45B $.17B North Georgia 36% $ 681 29% 30% Income Producing 46% $.70B Owner Occupied $1.14B 24% Western North Carolina Coastal Georgia 18% $ 197 Gainesville MSA $ 261

  9. Slide 9: Commercial Real Estate (by loan type)

    9 9 Commercial Real Estate (by loan type) June 30, 2012 Owner Income Portfolio Characteristics (in millions) Occupied Producing Total Percent Office Buildings $ 299 $ 205 $ 504 28 % Retail 118 138 256 15 ƒ 58.7% owner-occupied Small Warehouses/Storage 116 74 190 10 Multi-Residential/Other Properties

  10. Slide 10: Commercial Construction (by loan type)

    10 10 Commercial Construction (by loan type) June 30, 2012 (in millions) Amount Percent Land Develop - Vacant (Improved) $ 64 38 % Raw Land - Vacant (Unimproved) 59 35 Portfolio Characteristics Commercial Land Development 25 15 Office Buildings 5 3 ƒ Average loan size: $455k Churches 5 3 Warehouse 2

  11. Slide 11: Residential Mortgage (total $1.13 billion)

    11 Residential Mortgage (total $1.13 billion) By Loan Type North Georgia Geographic Diversity $460 $ in millions Home Equity 26% $.29B 42% Western North Carolina Avg loan size $43k 36% $272 30% 24% Atlanta MSA Mortgage 74% $165 $.84B 18% East Tennessee Coastal Georgia Gainesville MSA Avg loan size $

  12. Slide 12: Residential Construction (total $0.41 billion)

    12 Residential Construction (total $0.41 billion) By Loan Type North Georgia Geographic Diversity $193 $ in millions 49% 12% Raw $.05B 42% 49% 20% Lot Western North Carolina Developing $.20B $.08B 35% $87 Atlanta MSA 28% $76 7% Sold $.03B 12% 21% Spec $.05B Coastal Georgia Gainesville MSA East Tenne

  13. Slide 13: Residential Construction – Total Company

    13 Residential Construction – Total Company 2Q12 vs. (in millions) 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 Land Loans Developing Land $ 78 $ 86 $ 88 $ 97 $ 105 $ (27) Raw Land 45 57 61 60 62 (17) Lot Loans 203 204 207 216 218 (15) Total 326 347 356 373 385 (59) Construction Loans Spec 49 57 59 64 74 (25) Sold

  14. Slide 14: New Loans Funded – Category and Market

    14 New Loans Funded – Category and Market (in millions) CATEGORY 2Q12 1Q12 MARKET 2Q12 1Q12 Commercial RE: Atlanta $ 35.5 $ 54.2 Owner Occupied $ 25.5 $ 55.0 Coastal Georgia 9.8 25.4 Income Producing 7.1 15.3 N. Georgia 21.9 25.1 Total Commercial RE 32.6 70.3 Tennessee 9.9 14.1 Commercial C & I 15.3

  15. Slide 15: New Loan Commitments – Category and Market

    15 15 New Loan Commitments – Category and Market (in millions) CATEGORY 2Q12 1Q12 MARKET 2Q12 1Q12 Commercial RE: Atlanta $ 54.7 $ 70.9 Owner Occupied $ 28.0 $ 55.7 N. Georgia 35.0 36.3 Income Producing 7.7 16.7 Coastal Georgia 11.4 28.0 Total Commercial RE 35.7 72.4 Tennessee 14.8 18.7 Commercial C

  16. Slide 16: Credit Quality

    16 16 Credit Quality (in millions) 2Q12 1Q12 4Q11 3Q11 2Q11 (1) Operating Net Charge-offs $ 18.9 $ 15.9 $ 20.6 $ 17.5 $ 16.5 as % of Average Loans (1) 1.85 % 1.55 % 1.99 % 1.68 % 1.58 % Allowance for Loan Losses $ 112.7 $ 113.6 $ 114.5 $ 146.1 $ 127.6 as % of Total Loans 2.74 % 2.75 % 2.79 % 3.55 %

  17. Slide 17: NPL Inflow Trends

    17 17 NPL Inflow Trends Quarterly NPL Inflows Since 2009 ($mm) $193.3 84.8% $200.0 $174.8 $177.7 $174.9 Decline $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 $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 Q1 '1

  18. Slide 18: Net Charge-offs by Loan Category

    18 18 Net Charge-offs by Loan Category (in thousands) 2Q12 % of Average Loans (Annualized) % of Avg (1) Total Loans 1Q12 4Q12 3Q11 Commercial (Sec. by RE): Owner Occupied $ 1,305 .46 % .87 % 1.16 % .34 % Income Producing 3,044 1.75 .70 .57 .71 Total Comm (Sec. by RE) 4,349 .95 .81 .90 .50 Commercial

  19. Slide 19: Net Charge-offs by Market

    19 19 Net Charge-offs by Market (in millions) 2Q12 % of Average Loans (Annualized) % of Avg (1) Total Loans 1Q12 4Q11 3Q11 North Georgia $ 12,474 3.58 % 2.56 % 2.70 % 2.16 % Atlanta MSA 2,307 .75 .89 1.37 .94 North Carolina 3,634 2.52 1.14 2.10 2.31 Coastal Georgia 211 .23 1.53 .41 .88 Gainesville M

  20. Slide 20: NPAs by Loan Category and Market

    20 20 NPAs by Loan Category and Market (in thousands) 2Q12 2Q12 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY MARKETS Commercial (sec. by RE): North Georgia $ 77,332 $ 13,546 $ 90,878 Owner Occupied $ 9,399 $ 7,914 $ 17,313 Atlanta MSA 17,593 8,651 26,244 Income Producing 9,716 2,672 12,38

  21. Slide 21: Financial Review

    21 FINANCIAL REVIEW

  22. Slide 22: Core Earnings Summary

    22 22 Core Earnings Summary (in thousands) Variance - Incr / (Decr) 2Q12 1Q12 4Q11 1Q11 Net Interest Revenue $ 56,836 $ (2,028) $ (2,214) $ (2,110) Fee Revenue 12,764 (327) 1,322 1,668 Gross Revenue 69,600 (2,355) (892) (442) Operating Expense (Excl OREO) 41,312 (1,358) (2,531) (4,368) Pre-Tax, Pre-

  23. Slide 23: Net Interest Margin

    23 23 Net Interest Margin NIM Characteristics 4.5% 3.79% „ Margin 3.67% 3.77% 3.76% 3.62% -10 bps vs. 1Q12 3.55% 3.51% 3.53% 3.0% 3.41% 3.43% +2 bps vs. 2Q11 „ Lowered Core and CD 1.5% Deposit Pricing „ Loan Pricing Pressure .0% 2Q11 3Q11 4Q11 1Q12 2Q12 NIM „ 2Q Excess Liquidity – NIM – Core Credit(

  24. Slide 24: Margin – Credit Costs

    24 24 Margin – Credit Costs .30% .26% .26% .25% .24% Credit Costs .05% .05% .23% Impacting Margin .07% .05% .20% .19% „ Historically 8 to 12 bps .07% .03% .15% .13% „ Significant improvement after .07% .12% de-risking balance sheet 1Q11 .10% .10% .14% „ Cost 2Q12 vs. Historical – 7 .05% .10% .08% bp

  25. Slide 25: Key Drivers of Net Interest Revenue / Margin

    25 25 Key Drivers of Net Interest Revenue / Margin 6.0 5.73 5.62 5.49 5.39 5.25 Offsetting Impacts 5.0 on Margin „ Loan pricing 4.0 under pressure 3.0 „ Deposit rates continue to 2.0 decline .99 .86 1.0 .70 .60 .53 4.74 4.76 4.79 4.79 4.72 Loan Spreads .0 Loan Yields Average Rate on Interest Bearing

  26. Slide 26: Deposit Pricing, Excluding Brokered Deposits

    26 26 Deposit Pricing, Excluding Brokered Deposits 1.25 1.00 .75 .62 .61 .50 .46 .44 .32 .36 .32 .25 .26 .30 .30 .22 .24 .23 .17 .16 .00 2Q11 3Q11 4Q11 1Q12 2Q12 CDS MMDA NOW Note – CD pricing reflects the quarter-ending new and renewed yield. MMDA / NOW pricing reflects the deposit yield for each q

  27. Slide 27: Deposit Mix

    27 27 Deposit Mix (in millions) 2Q12 55% $5.6B Public Funds 2Q12 1Q12 2Q11 4Q08 12% Demand & Demand / NOW $ 1,735 $ 1,722 $ 1,620 $ 1,457 Time NOW >$100k MMDA / Savings 1,330 1,331 1,174 630 13% 31% Core Transaction 3,065 3,053 2,794 2,087 Time <$100k 20% MMDA & 10% Growth - $271 Million Sav. 24% +9

  28. Slide 28: Core Deposit Growth – Category and Market

    28 28 Core Deposit Growth – Category and Market (in millions, excluding public) Growth YTD CATEGORY 2Q12 2Q12 Last 12 Mo Demand $ 35.9 $ 143.7 $ 222.6 MM Accounts (6.2) 81.9 134.9 Savings 5.4 20.7 21.7 NOW (22.6) (82.8) (107.6) Total Categories $ 12.5 $ 163.5 $ 271.6 Percent Growth (Annualized) 2 %

  29. Slide 29: Fee Revenue - Core

    29 29 Fee Revenue - Core (in millions) Variance - Incr / (Decr) 2Q12 1Q12 4Q11 2Q11 NSF & Overdraft Fees $ 3,232 $ (13) $ (305) $ (426) Debit Card Fees 3,242 140 273 (37) Other Service Charges 1,342 (94) 600 671 Total Service Charges and Fees 7,816 33 568 208 Mortgage Loan & Related Fees 2,322 223 4

  30. Slide 30: Operating Expenses - Core

    30 30 Operating Expenses - Core (in thousands) Variance - Incr / (Decr) 2Q12 1Q12 4Q11 2Q11 Salaries & Employee Benefits $ 23,150 $ (1,615) $ (2,388) $ (2,129) Communications & Equipment 3,211 56 82 (167) Occupancy 3,539 (232) (433) (266) FDIC Assessment 2,545 35 144 (1,099) Advertising & Public Rel

  31. Slide 31: Net Operating Income

    31 31 Net Operating Income (in thousands) 2Q12 1Q12 4Q11 2Q11 Pre-Tax, Pre-Credit (Core) $ 28,288 $ 29,285 $ 26,649 $ 24,362 Provision for Loan Loss (18,000) (15,000) (14,000) (11,000) Foreclosed Property Costs: Write-downs (1,008) (2,111) (3,892) (3,118) Losses on Sales 269 (93) (3,041) 3,218 Maint

  32. Slide 32: Net Income

    32 32 Net Income (in thousands) 2Q12 1Q12 4Q11 2Q11 Net Income $ 6,499 $ 11,528 $ 9,901 $ 12,028 Preferred Stock Dividends (3,032) (3,030) (3,025) (3,016) Net Income Avail to Common Shareholders $ 3,467 $ 8,498 $ 6,876 $ 9,012 Net Income Per Share $ .06 $ .15 $ .12 $ .16 Tangible Book Value $ 6.48 $

  33. Slide 33: Capital Ratios

    33 33 Capital Ratios Well- Minimum Capitalized Guideline JUN '12 MAR '12 JUN '11 Bank Tier 1 RBC 6 % 10 % 14.3 % 13.7 % 13.3 % Total RBC 10 11 15.6 15.0 15.1 Leverage 5 8 9.2 9.0 8.3 Holding Company Tier 1 RBC 6 10 14.2 13.7 13.6 Total RBC 10 11 15.9 15.4 16.2 Leverage 5 8 9.1 8.9 8.5 Tier I Common

  34. Slide 34: Appendix

    34 APPENDIX

  35. Slide 35: Experienced Proven Leadership

    35 35 Experienced Proven Leadership Joined Years in UCBI Banking Jimmy Tallent President & CEO 1984 38 Rex Schuette Chief Financial Officer 2001 35 David Shearrow Chief Risk Officer 2007 31 Craig Metz Marketing & Retail Banking 2002 20 Regional Presidents: Bill Gilbert North & Coastal Georgia 2000 3

  36. Slide 36: Business and Operating Model

    36 36 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 9 Recog

  37. Slide 37: Robust Demographics (fast growing markets)

    37 37 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

  38. Slide 38: Market Share Opportunities

    38 38 Market Share Opportunities Excellent growth prospects Market Deposits United Deposit Markets (in billions) (1) Deposits (2) Banks Offices Share (1) (1) Rank North Georgia $ 6.8 $ 2.0 11 22 33 % 1 Atlanta MSA 48.2 2.0 10 38 4 7 Gainesville MSA 2.5 .3 1 5 14 3 Coastal Georgia 7.0 .3 2 8 6 7 West

  39. Slide 39: Leading Demographics

    39 39 Leading Demographics 2011 ‐ 2016 Total Assets Population (1) Rank Ticker Company State ($B) Growth(2) 1 CFR Cullen/Frost Bankers, Inc. TX 20.4 8.38 2 IBOC International Bancshares Corporation TX 11.8 6.99 3 HBHC Hancock Holding Company MS 19.3 6.38 4 PB Prosperity Bancshares, Inc. TX 10.9 6.23

  40. Slide 40: Proactively Addressing Credit Environment

    40 40 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

  41. Slide 41: Lending – Credit Summary

    41 41 Lending – Credit Summary (in millions) ƒ Legal lending limit $158 ƒ House lending limit 20 Project lending limit 12 ƒ Top 25 relationships 404 Regional credit review – Standard underwriting

  42. Slide 42: Performing Classified Loans

    42 42 Performing Classified Loans (in millions) LOANS BY CATEGORY 2Q12 1Q12 4Q11 3Q11 2Q11 Commercial (Sec. by RE): Owner Occupied $ 54 $ 78 $ 79 $ 69 $ 72 Income Producing 94 56 64 65 46 Total Comm (Sec. by RE) 148 134 143 134 118 Commercial & Industrial 16 17 16 25 17 Commercial Construction 38 23

  43. Slide 43: Business Mix Loans (at quarter-end)

    43 43 Business Mix Loans (at quarter-end) (in millions) 2Q12 vs. LOANS BY CATEGORY 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 Commercial (Sec. by RE): Owner Occupied $ 1,140 $ 1,137 $ 1,111 $ 1,037 $ 1,014 $ 126 Income Producing 697 706 711 734 728 (31) Total Comm (Sec. by RE) 1,837 1,843 1,822 1,771 1,742 95 Co

  44. Slide 44: Loans – Markets Served (at quarter-end)

    44 44 Loans – Markets Served (at quarter-end) (in millions) 2Q12 vs. LOANS BY MARKET 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 North Georgia $ 1,387 $ 1,408 $ 1,426 $ 1,478 $ 1,500 $ (113) Atlanta MSA 1,252 1,239 1,220 1,192 1,188 64 North Carolina 576 588 597 607 626 (50) Coastal Georgia 369 366 346 316 325 44

  45. Slide 45: Residential Construction – North Georgia

    45 45 Residential Construction – North Georgia (in millions) 2Q12 vs. 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 Land Loans Developing Land $ 39 $ 44 $ 44 $ 51 $ 58 $ (19) Raw Land 18 26 26 25 25 (7) Lot Loans 113 113 118 124 129 (16) Total 170 183 188 200 212 (42) Construction Loans Spec 9 12 12 15 18 (9) Sold

  46. Slide 46: Residential Construction – Atlanta MSA

    46 46 Residential Construction – Atlanta MSA (in millions) 2Q12 vs. 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 Land Loans Developing Land $ 14 $ 17 $ 17 $ 19 $ 20 $ (6) Raw Land 9 13 14 15 16 (7) Lot Loans 22 22 22 22 22 - Total 45 52 53 56 58 (13) Construction Loans Spec 24 27 27 28 30 (6) Sold 7 7 6 8 9 (2) To

  47. Slide 47: Business Mix Loans (at year-end)

    47 47 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

  48. Slide 48: Loans – Markets Served (at year-end)

    48 48 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

  49. Slide 49: TDRs by Loan Type

    49 TDRs by Loan Type (in millions) (1) LOAN TYPE Accruing Non-Accruing Total TDRs As of June 30, 2012 Commercial (Sec by RE) $ 75,901 $ 6,424 $ 82,325 Commercial & Industrial 3,713 259 3,972 Commercial Construction 30,727 10,950 41,677 Total Commercial 110,341 17,633 127,974 Residential Mortgage 14,

  50. Slide 50: NPAs by Loan Category, Market, and Activity

    50 50 NPAs by Loan Category, Market, and Activity (1) Credit Quality Second Quarter 2012 First Quarter 2012 Fourth Quarter 2011 Non-performing Foreclosed Total Non-performing Foreclosed Total Non-performing Foreclosed Total (in thousands) Loans Properties NPAs Loans Properties NPAs Loans Properties

  51. Slide 51: Net Charge-offs by Category and Market

    51 51 Net Charge-offs by Category and Market (1) Credit Quality Second Quarter 2012 First Quarter 2012 Fourth Quarter 2011 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

  52. Slide 52: Net Charge-offs by Category and Market – Asset Disposition Plan

    52 52 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

  53. Slide 53: Credit Quality – Bulk Loan Sale Summary

    53 53 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 (

  54. Slide 54: Loans / Deposits - Liquidity

    54 54 Loans / Deposits - Liquidity (in millions) Variance 2Q12 1Q12 2Q11 vs 1Q12 vs 2Q11 Loans $ 4,119 $ 4,128 $ 4,163 $ (9) $ (44) Core (DDA, MMDA, Savings) $ 3,065 $ 3,053 $ 2,794 $ 12 $ 271 Public Funds 659 820 649 (161) 10 CD's 1,887 1,960 2,439 (73) (552) Total Deposits (excl Brokered) $ 5,611

  55. Slide 55: Wholesale Borrowings - Liquidity

    55 55 Wholesale Borrowings - Liquidity (in millions) Unused Variance Capacity 2Q12 1Q12 2Q11 vs 1Q12 vs 2Q11 Wholesale Borrowings (1) Brokered Deposits $ 1,474 $ 211 $ 168 $ 301 $ 43 $ (90) FHLB 629 125 215 41 (90) 84 Fed Funds 125 - - - - - Other Wholesale 478 54 102 104 (48) (50) Total $ 2,706 $ 3

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

    56 56 Business Mix – Deposits at quarter-end (in millions) 2Q12 vs. DEPOSITS BY CATEGORY 2Q12 1Q12 4Q11 3Q11 2Q11 2Q11 Demand & Now $ 1,735 $ 1,722 $ 1,674 $ 1,686 $ 1,620 $ 115 MMDA & Savings 1,330 1,331 1,228 1,220 1,174 156 Core Transaction Deposits 3,065 3,053 2,902 2,906 2,794 271 Time < $100,0

  57. Slide 57: Core Transaction Deposits

    57 57 Core Transaction Deposits Geographic Diversity Core Transactions / Total Deposits (%) 2Q 11 2Q 12 2Q12 2Q11 $ in millions Coastal GA 64.0 % 42.4 % Eastern Tennessee $160 Gainesville MSA 59.4 53.1 $172 North Carolina 57.9 50.3 Gainesville MSA $181 Atlanta MSA 57.0 50.4 $191 East TN 56.5 48.5 Co

  58. Slide 58: Non GAAP Reconciliation Tables

    58 58 Non GAAP Reconciliation Tables (in thousands except EPS) Operating Earnings to GAAP Earnings Reconciliation 2Q12 1Q12 2Q11 Core net interest revenue reconciliation Core net interest revenue $ 56,836 $ 58,864 $ 58,946 Taxable equivalent adjustment (444) (446) (429) Net interest revenue (GAAP) $

  59. Slide 59: Non GAAP Reconciliation Tables

    59 59 Non GAAP Reconciliation Tables Operating Earnings to GAAP Earnings Reconciliation 2Q12 1Q12 2Q11 Net interest margin - pre credit reconciliation Net interest margin - pre credit 3.62 % 3.76 % 3.67 % Effect of interest reversals, lost interest, and carry costs of NPAs (.19) (.23) (.26) Net inte

  60. Slide 60: Analyst Coverage

    Analyst Coverage ™ FIG Partners (Market Perform - May 8, 2012) ™ Guggenheim Securities, LLC (Neutral - Apr30, 2012) ™ Keefe, Bruyette & Woods (Market Perform - Apr 26, 2012) ™ Macquarie Capital (USA) (Neutral - Jan 25, 2012) ™ Raymond James & Assoc. (Market Perform - Apr 27, 2012) ™ Sandler O'Neill

  61. Slide 61: United Community Banks, Inc.

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

United Community Banks — Q2 2012 Earnings Presentation on 6ix