EX-99.2 3 g03304exv99w2.htm EX-99.2 FINANCIAL SUMMARY FOR SOUTHERN BANCORP, INC. EX-99.2 FINANCIAL SUMMARY/SOUTHERN BANCORP, INC.
 

EXHIBIT 99.2
UNITED COMMUNITY BANKS, INC.
FINANCIAL SUMMARY FOR SOUTHERN BANCORP, INC.
($ in 000s)
Condensed Balance Sheet (unaudited)
         
    As of June 30, 2006  
Cash
   $ 9,272  
Investment Securities
   64,876  
Net Loans
   241,673  
Fixed Assets
   6,257  
Other Assets
   6,741  
 
      
Total Assets
   $ 328,818  
 
      
 
        
Deposits
   $ 293,442  
Other Liabilities
   16,662  
 
      
Total Liabilities
   310,105  
 
        
Shareholders Equity
   18,713  
 
        
 
      
Total Liabilities and Shareholders Equity
   $ 328,818  
 
      
 
        
Transaction value
   $ 66,500  
Transaction value as a multiple of S corporation shareholders equity
   3.55 x
Adjusted Shareholders Equity (1)
   $ 23,367  
Transaction value as a multiple of adjusted stockholders equity (1)
   2.85 x
Tax Equivalent Net Income Summary (unaudited)
                                         
    2005                               2006  
    Third Quarter     Fourth Quarter     First Quarter     Second Quarter     Last Four Quarters  
Income Before Income Taxes
   $ 1,148     $ 1,259     $ 857     $ 1,854     $ 5,118  
Income Taxes (2)
   402     441     300     649     1,791  
     
Net Income
   $ 746     $ 818     $ 557     $ 1,205     $ 3,327  
     
         
Transaction value as a multiple of tax equivalent earnings for last four quarters
   19.99 x
Notes
(1) Southern Bancorp, Inc. is a subchapter S corporation and is therefore not directly subject to income taxes. Immediately upon acquisition by United Community Banks, Inc., Southern Bancorp, Inc. will recognize a $2,061,000 deferred tax asset for differences between its book and tax basis for certain assets and liabilities, primarily the allowance for loan losses, reserve for unfunded commitments and the mark to market on securities outstanding. This schedule is provided to present the transaction value as a multiple of book value on a consistent basis as if Southern Bancorp, Inc. had been a taxable C corporation (assuming a 35% tax rate). Thus, the stockholders equity has been adjusted to assume the recognition of this deferred tax asset and assumes the exercise of 185,000 currently outstanding warrants and 45,000 currently outstanding options to purchase Southern Bancorp common stock, which is required prior to our simultaneous with the closing of the transaction.
(2) The rate used was 35%.