United Community Banks, Inc. · NYSE:UCB

United Community Banks — Q4 2012 Earnings Presentation

14 slides from United Community Banks's earnings presentation, Feb 22, 2013

  1. Slide 1: Updated as of February 22, 2013

    Jimmy C. Tallent President & CEO H. Lynn Harton Chief Operating Officer Rex S. Schuette EVP & Chief Financial Officer rex_schuette@ucbi.com (706) 781-2266 David P. Shearrow EVP & Chief Risk Officer Updated as of February 22, 2013

  2. Slide 2: Highlights Fourth Quarter

    6 Highlights Fourth Quarter Improving Quarterly Results Net income of $5.26 million, or 4 cents per share Sixth quarterly profit in past seven quarters Core earnings (pre-tax, pre-credit) of $29.1 million Modest Loan Growth, Both Linked Quarter and Year Ago Increased commercial and retail lending op

  3. Slide 3: Net Income (Loss)

    16 Net Income (Loss) $ in millions *Includes $25 million provision for large customer relationship

  4. Slide 4: Operating Expenses - Core

    29 Operating Expenses - Core 4 (in thousands) Variance - Increase / (Decrease) 4Q12 3Q12 4Q11 Salaries & Employee Benefits $ 22,960 $ 596 $ (2,578) Communications & Equipment 3,320 66 191 Occupancy 3,455 (84) (517) FDIC Assessment 2,505 (32) (94) Advertising & Public Relations 987 53 43 Postage, Pri

  5. Slide 5: Net Operating Income

    30 Net Operating Income 5 (in thousands) Variance - Increase / (Decrease) 4Q12 3Q12 4Q11 Core Earnings (Pre-Tax, Pre-Credit)$ 29,090$ (761) $ 2,441 Provision for Loan Loss (14,000) (1,500) - NON-CORE FEE REVENUE: Hedge Ineffectiveness Gaines (Losses) 116 (492) (197) Securites Gains (Losses) 31 31 27

  6. Slide 6: Net Income

    31 Net Income 6 (in thousands) ariance - Increase / (Decrease 4Q12 3Q12 4Q11 Net Income $ 5,261 $ (5,307) $ (4,640) Preferred Stock Dividends (3,045) (4) (20) Net Income Avail to Common Shareholders $ 2,216 $ (5,311) $ (4,660) Net Income Per Share $ .04 $ (.09) $ (.08) Tangible Book Value $ 6.57 $ (

  7. Slide 7: Core Earnings Summary 2012 Full Year

    32 Core Earnings Summary 2012 Full Year (in millions) Over/(Under) Full Year 2012 2011 Net Interest Revenue $ 229.1 $ (6.6) Fee Revenue 53.5 9.3 Operating Expense (Excl OREO) (166.1) (14.2) Core Earnings (Pre-Credit) 116.5 16.9 Provision for Loan Losses (62.5) 16.5 - Fletcher - (25.0) - Asset Dispos

  8. Slide 8: Key Ratios 2012 Full Year

    33 Key Ratios 2012 Full Year Full Year 2012 Earnings per Share $ .38 Margin 3.50 % Return on Equity 5.43 % Return on Tangible Equity 6.27 Return on Assets .49 Operating Efficiency 65.4 % -Core (Excl. OREO) 58.8 Tangible Book Value $ 6.57 -Book Value DTA Recovery $271 M illion or $4.69 /Share

  9. Slide 9: Operating Expenses – Core 2012 Full Year

    35 Operating Expenses – Core 2012 Full Year (in millions) Over / 2012 2011 (Under) Salaries & Employee Benefits $ 93.2 $ 101.3 $ (8.1) Communications & Equipment 12.9 13.1 (.2) Occupancy 14.3 15.6 (1.3) FDIC Assessment 10.1 14.3 (4.2) Advertising & Public Relations 3.9 4.3 (.4) Postage, Printing & S

  10. Slide 10: Capital Ratios

    39 Capital Ratios 10 Well- Capitalized DEC ’ 12 SEP ’ 12 JUN ’ 12 Bank Tier 1 RBC 6 % 14.5 % 14.5 % 14.4 % Total RBC 10 15.7 15.7 15.7 Leverage 5 9.9 9.9 9.2 Holding Company Tier 1 RBC 6 14.2 14.3 14.3 Total RBC 10 15.7 15.8 16.0 Leverage 5 9.6 9.8 9.2 Tier I Common RBC 8.8 8.8 8.8 Tangible Equity t

  11. Slide 11: Lending – Credit Summary

    67 Lending – Credit Summary 11 (in millions) Legal lending limit $162 House lending limit 20 Project lending limit 12 Top 25 relationships 371 Regional credit review – Standard underwriting

  12. Slide 12: Non GAAP Reconciliation Tables

    78 Non GAAP Reconciliation Tables 12 (in thousands except EPS) Operating Earnings to GAAP Earnings Reconciliation 4Q12 3Q12 2Q12 1Q12 Core net interest revenue reconciliation Core net interest revenue $ 56,028 $ 57,371 $ 56,836 $ 58,864 Interesst reversed on performing loans included in bulk sale -

  13. Slide 13: Non GAAP Reconciliation Tables

    79 Non GAAP Reconciliation Tables 13 (in thousands except EPS) Operating Earnings to GAAP Earnings Reconciliation 4Q11 3Q11 2Q11 1Q11 Core net interest revenue reconciliation Core net interest revenue $ 59,050 $ 59,281 $ 58,946 $ 58,406 Interesst reversed on performing loans included in bulk sale -

  14. Slide 14: Non GAAP Reconciliation Tables

    80 Non GAAP Reconciliation Tables 14 Operating Earnings to GAAP Earnings Reconciliation 4Q12 3Q12 2Q12 1Q12 Net interest margin - pre credit reconciliation Net interest margin - pre credit 3.61 % 3.79 % 3.62 % 3.76 % Effect of interest reversals, lost interest, and carry costs of NPAs (.17) (.19) (.

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