Four Oaks Fincorp — Merger or Acquisition (June 2017)
10 slides from Four Oaks Fincorp's merger presentation, Jun 27, 2017
Slide 1: Acquisition of Four Oaks Fincorp, Inc.
Acquisition of Four Oaks Fincorp, Inc. June 27, 2017 ► Expands franchise footprint into attractive Raleigh, NC MSA ► Partnership with 105 - year - old community bank with significant operations in North Carolina’s fastest - growing MSA ; consistent with United growth strategy ► Strategically and fin
Slide 2: Disclosures
ucbi.com | 2 Disclosures CAUTIONARY STATEMENT This investor presentation may contain forward - looking statements, as defined by federal securities laws, including statements about United and its financial outlook and business environment . These statements are based on current expectations and are
Slide 3: Transaction Overview
Transaction Overview ucbi.com | 3 ► 105 - year - old community bank with 14 banking offices, including 12 in the high - growth Raleigh MSA ► Entry into attractive markets and substantially increases our North Carolina franchise to approximately $ 2 . 0 billion in assets with 33 banking offices ► Con
Slide 4: Four Oaks – Years of Local Service
Four Oaks – 105 Years of Local Service Four Oaks United Four Oaks LPO ► Partnering with a 105 - year - old community bank located in North Carolina’s fastest growing market ► 10 branches and 2 LPOs in Raleigh MSA and a branch in Dunn and Wallace, NC ► Locally focused franchise ranked # 2 among local
Slide 5: Key Assumptions
Key Assumptions ucbi.com | 5 ► Conservative $ 19 million gross credit mark, or 3 . 75 % of loans ► $ 4 . 8 million pretax benefit from interest rate discount on trust preferred securities ► $ 6 . 8 million core deposit intangible ► Other net pretax marks (negative to equity) of $ 1 . 5 million ► $ 8
Slide 6: Transaction Terms
Transaction Terms ► Consideration : Approximately 90 % stock or . 6178 shares of United and 10 % cash or $ 1 . 90 for each share of Four Oaks ► Implied Transaction Value : $ 18 . 26 per share or $ 124 million in aggregate based on United’s closing price on June 23 , 2017 of $ 26 . 48 ► Implied Price
Slide 7: Raleigh Market and Growth Opportunities
Raleigh Market and Growth Opportunities Market disruption creates opportunity: Of the 15 operating banks or bank holding companies headquartered in metro Raleigh a decade ago, 10 have sold or exited the market ucbi.com | 7 Source: SNL Financial ► Four Oaks is one of the most established banks in NC
Slide 8: Focused on High-Growth MSAs in the Southeast
Focused on High - Growth MSAs in the Southeast ► Raleigh is projected to be the fifth fastest growing MSA in the Southeast through 2022 and has the region’s highest median household income ► With the addition of the Raleigh market, the United franchise is present in four of the top 10 high - growth
Slide 9: Franchise Highlights
Franchise Highlights TCE Ratio 8.96% Loans/Deposits Net Interest Margin NPAs/Assets ex. TDRs 9.44% 3.45% 0.23% 79.58% 3.92% 0.82% 91.60% Cost of Funds Banking Offices 1950 0.19% 0.58% United “Total Assets” and “Banking Offices” pro forma for HCSB Financial, Inc. acquisition Data is 1Q as of 3/31/17
Slide 10: Loan and Deposit Composition
Demand 5% Transaction 3% MMDA & Savings 74% Retail CD 16% Jumbo CD 2% Pro forma figures are bank - level as of 3/31/17 United figures include the impact of HCSB Financial, Inc. acquisition, excluding purchase accounting adjustments Source: SNL Financial Loans Deposits $7.2bn $514mm $7.7bn $561mm Fou
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