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%.
