SYS-CON MEDIA Authors: Kevin Benedict, Gilad Parann-Nissany

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United Community Banks, Inc. Reports Earnings of $15.4 Million for First Quarter 2014

BLAIRSVILLE, GA--(Marketwired - April 24, 2014) -  United Community Banks, Inc. (NASDAQ: UCBI)

  • Earnings per diluted share of 25 cents, up 14 percent from fourth quarter
  • Loans up $27 million, or 2 percent annualized
  • Core transaction deposits up $135 million, or 16 percent annualized
  • All preferred stock redeemed
  • All capital ratios remain strong

United Community Banks, Inc. (NASDAQ: UCBI) ("United") today reported net income of $15.4 million, or 25 cents per diluted share, for the first quarter of 2014. Earnings per share were up 14 percent from the fourth quarter, and 67 percent from the first quarter of 2013, reflecting a reduction in preferred stock dividends, reduced operating costs and a lower provision for loan losses.

"I am pleased with our first quarter progress and our outlook for the balance of 2014," said Jimmy Tallent, president and chief executive officer. "We achieved steady loan growth and strong deposit growth, while controlling expenses.

"I am especially pleased that we redeemed the remaining $122 million in preferred stock, completing the final phase of our TARP and other preferred stock redemptions during the first quarter," Tallent continued. "In total we redeemed $197 million in preferred stock, including $75 million in the fourth quarter, without issuing common equity that would have been dilutive to shareholders.

"The elimination of expensive preferred stock dividends had a positive impact on first quarter per share results," Tallent added. "Longer-term, it will benefit our performance and the ability to execute our strategic plan."

The first quarter provision for credit losses was $2.5 million, down $500,000 from the fourth quarter and down $8.5 million from the first quarter of 2013. First quarter net charge-offs were $4.04 million, compared with $4.44 million in the fourth quarter and $12.4 million a year ago. Nonperforming assets at quarter-end were $30.8 million, representing .42 percent of total assets. This was down slightly from the fourth quarter and down significantly from $112.7 million, or 1.65 percent of total assets, in the first quarter of 2013.

First quarter taxable equivalent net interest revenue totaled $54.2 million, down $1.71 million from the fourth quarter and down $405,000 from the first quarter of 2013. The first quarter taxable equivalent net interest margin was 3.21 percent, down five basis points from the fourth quarter and down 16 basis points from a year ago.

"The decline in net interest revenue was related primarily to two fewer days of interest accruals in the first quarter," said Tallent. "Competitive loan pricing pressures continue, and we are sharply focused on growing loans and deposits to offset the impact and grow net interest revenue. We also remain committed to prudent interest rate risk management. To that end, 39 percent of our investment portfolio consists of floating-rate securities, compared with 41 percent at year-end 2013 and 34 percent in the first quarter of 2013."

First quarter fee revenue totaled $12.2 million, down $1.34 million from the fourth quarter and $735,000 from a year earlier, primarily due to lower mortgage fees and lower customer swap fees in other fee revenue. Additionally, fourth quarter fee revenue included the recognition of $300,000 in gains on mutual fund investments. First quarter mortgage fees were down $359,000 from the fourth quarter and down $1.3 million from a year ago, reflecting slower mortgage refinancing activity related to rising long-term interest rates. Closed mortgage loans totaled $46 million in the first quarter, compared with $55.5 million in the fourth quarter and $70 million in the first quarter of 2013.

Operating expenses, excluding foreclosed property costs, were $38.9 million in the first quarter compared to $41.4 million in the fourth quarter of 2013 and $41.4 million a year ago. Expenses decreased in every category from fourth quarter totals, reflecting successful efforts to control operating costs. The most significant quarter-to-quarter decreases were $675,000 in professional fees and $451,000 in FDIC assessments and other regulatory charges, reflecting United's improved credit quality. Salaries and employee benefits decreased $421,000, in part reflecting incentive compensation accrued in the fourth quarter for achievement of the 2013 performance targets.

Foreclosed property costs were $116,000 in the first quarter compared to $191,000 in the fourth quarter and $2.33 million a year ago. These costs have remained lower following the accelerated sales of classified assets in the second quarter of 2013.

On March 31, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.1 percent; Total Risk-Based of 12.3 percent; Tier 1 Common Risk-Based of 10.0 percent; Tier 1 Leverage of 8.0 percent; and Tangible Equity-to-Assets of 9.5 percent.

"We made good progress in the first quarter," Tallent said. "A year ago our focus was resolving legacy credit-related problems, a major undertaking that has been completed. Other challenges have remained with regard to interest rates and the economic environment. But our team has kept expenses down and strengthened the business pipeline, and we have strategically added people and initiatives to drive revenue growth. Of particular note are the additions of senior talent to lead our Tennessee region, our specialized lending group, and our structured finance area. I believe we are on track to achieve our business targets and financial goals for the year."

Conference Call
United will hold a conference call today, Thursday, April 24, 2014, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 24926399. The conference call also will be webcast and can be accessed by selecting 'Calendar of Events' within the Investor Relations section of United's website at www.ucbi.com.

About United Community Banks, Inc.
United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.4 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 102 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking services including mortgage, advisory and treasury management products. United Community Bank is consistently recognized for its outstanding customer service by national survey organizations. Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.

Safe Harbor
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 future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United's filings with the Securities and Exchange Commission including its 2013 Annual Report on Form 10-K under the sections entitled "Forward-Looking Statements" and "Risk Factors." Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Selected Financial Information                                              
                                                                            
                                                                            
                      2014                    2013                          
                    -------  -------------------------------------          
                                                                      First 
(in thousands,                                                      Quarter 
 except per share                                                    2014-  
 data; taxable       First    Fourth   Third     Second    First      2013  
 equivalent)        Quarter  Quarter  Quarter   Quarter    Quarter   Change 
                    -------  -------  -------  ---------  --------  ------- 
INCOME SUMMARY                                                              
Interest revenue    $60,495  $61,695  $61,426  $  62,088  $ 62,114          
Interest expense      6,326    5,816    7,169      7,157     7,540          
                    -------  -------  -------  ---------  --------          
    Net interest                                                            
     revenue         54,169   55,879   54,257     54,931    54,574      (1)%
Provision for credit                                                        
 losses               2,500    3,000    3,000     48,500    11,000          
Fee revenue          12,176   13,519   14,225     15,943    12,911       (6)
                    -------  -------  -------  ---------  --------          
    Total revenue    63,845   66,398   65,482     22,374    56,485          
Operating expenses   39,050   41,614   40,097     48,823    43,770      (11)
                    -------  -------  -------  ---------  --------          
    Income (loss)                                                           
     before income                                                          
     taxes           24,795   24,784   25,385    (26,449)   12,715       95 
Income tax expense                                                          
 (benefit)            9,395    8,873    9,885   (256,413)      950          
                    -------  -------  -------  ---------  --------          
  Net income         15,400   15,911   15,500    229,964    11,765       31 
Preferred dividends                                                         
 and discount                                                               
 accretion              439    2,912    3,059      3,055     3,052          
                    -------  -------  -------  ---------  --------          
Net income available                                                        
 to common                                                                  
 shareholders       $14,961  $12,999  $12,441  $ 226,909  $  8,713       72 
                    =======  =======  =======  =========  ========          
                                                                            
PERFORMANCE MEASURES                                                        
  Per common share:                                                         
    Diluted income  $   .25  $   .22  $   .21  $    3.90  $    .15       67 
    Book value        11.66    11.30    10.99      10.90      6.85       70 
    Tangible book                                                           
     value (2)        11.63    11.26    10.95      10.82      6.76       72 
                                                                            
  Key performance                                                           
   ratios:                                                                  
    Return on common                                                        
     equity (1)(3)     8.64%    7.52%    7.38%    197.22%     8.51%         
    Return on assets                                                        
     (3)                .85      .86      .86      13.34       .70          
    Net interest                                                            
     margin (3)        3.21     3.26     3.26       3.33      3.37          
    Efficiency ratio  59.05    60.02    58.55      68.89     64.97          
    Equity to assets   9.52    11.62    11.80   11.57 (4)     8.60          
    Tangible equity                                                         
     to assets (2)     9.50    11.59    11.76   11.53 (4)     8.53          
    Tangible common                                                         
     equity to                                                              
     assets (2)        9.22     8.99     9.02    8.79 (4)     5.66          
    Tangible common                                                         
     equity to risk-                                                        
     weighted assets                                                        
     (2)              13.57    13.17    13.34      13.16      8.45          
                                                                            
ASSET QUALITY *                                                             
  Non-performing                                                            
   loans            $25,250  $26,819  $26,088  $  27,864  $ 96,006          
  Foreclosed                                                                
   properties         5,594    4,221    4,467      3,936    16,734          
                    -------  -------  -------  ---------  --------          
    Total non-                                                              
     performing                                                             
     assets (NPAs)   30,844   31,040   30,555     31,800   112,740          
  Allowance for loan                                                        
   losses            75,223   76,762   80,372     81,845   105,753          
  Net charge-offs     4,039    4,445    4,473     72,408    12,384          
  Allowance for loan                                                        
   losses to loans     1.73%    1.77%    1.88%      1.95%     2.52%         
  Net charge-offs to                                                        
   average loans (3)    .38      .41      .42       6.87      1.21          
  NPAs to loans and                                                         
   foreclosed                                                               
   properties           .71      .72      .72        .76      2.68          
  NPAs to total                                                             
   assets               .42      .42      .42        .44      1.65          
                                                                            
AVERAGE BALANCES($                                                          
 in millions)                                                               
  Loans             $ 4,356  $ 4,315  $ 4,250  $   4,253  $  4,197        4 
  Investment                                                                
   securities         2,320    2,280    2,178      2,161     2,141        8 
  Earning assets      6,827    6,823    6,615      6,608     6,547        4 
  Total assets        7,384    7,370    7,170      6,915     6,834        8 
  Deposits            6,197    6,190    5,987      5,983     5,946        4 
  Shareholders'                                                             
   equity               703      856      846        636       588       20 
  Common shares -                                                           
   basic (thousands) 60,059   59,923   59,100     58,141    58,081          
  Common shares -                                                           
   diluted                                                                  
   (thousands)       60,061   59,925   59,202     58,141    58,081          
                                                                            
AT PERIOD END($ in                                                          
 millions)                                                                  
  Loans *           $ 4,356  $ 4,329  $ 4,267  $   4,189  $  4,194        4 
  Investment                                                                
   securities         2,302    2,312    2,169      2,152     2,141        8 
  Total assets        7,398    7,425    7,243      7,163     6,849        8 
  Deposits            6,248    6,202    6,113      6,012     6,026        4 
  Shareholders'                                                             
   equity               704      796      852        829       592       19 
  Common shares                                                             
   outstanding                                                              
   (thousands)       60,092   59,432   59,412     57,831    57,767          
                                                                            
(1) Net income available to common shareholders, which is net of preferred  
 stock dividends, divided by average realized common equity, which excludes 
 accumulated other comprehensive income (loss). (2) Excludes effect of      
 acquisition related intangibles and associated amortization. (3)           
 Annualized. (4) Calculated as of period-end.                               
                                                                            
* Excludes loans and foreclosed properties covered by loss sharing          
 agreements with the FDIC.                                                  
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Non-GAAP Performance Measures Reconciliation                                
Selected Financial Information                                              
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                            2014                      2013                  
                          --------  --------------------------------------- 
(in thousands, except per                                                   
 share                      First    Fourth     Third     Second     First  
data; taxable equivalent)  Quarter   Quarter   Quarter   Quarter    Quarter 
                          --------  --------  --------  ---------  -------- 
                                                                            
Interest revenue                                                            
 reconciliation                                                             
Interest revenue -                                                          
 taxable equivalent       $ 60,495  $ 61,695  $ 61,426  $  62,088  $ 62,114 
Taxable equivalent                                                          
 adjustment                   (357)     (380)     (370)      (368)     (365)
                          --------  --------  --------  ---------  -------- 
  Interest revenue (GAAP) $ 60,138  $ 61,315  $ 61,056  $  61,720  $ 61,749 
                          ========  ========  ========  =========  ======== 
                                                                            
Net interest revenue                                                        
 reconciliation                                                             
Net interest revenue -                                                      
 taxable equivalent       $ 54,169  $ 55,879  $ 54,257  $  54,931  $ 54,574 
Taxable equivalent                                                          
 adjustment                   (357)     (380)     (370)      (368)     (365)
                          --------  --------  --------  ---------  -------- 
  Net interest revenue                                                      
   (GAAP)                 $ 53,812  $ 55,499  $ 53,887  $  54,563  $ 54,209 
                          ========  ========  ========  =========  ======== 
                                                                            
Total revenue                                                               
 reconciliation                                                             
Total operating revenue   $ 63,845  $ 66,398  $ 65,482  $  22,374  $ 56,485 
Taxable equivalent                                                          
 adjustment                   (357)     (380)     (370)      (368)     (365)
                          --------  --------  --------  ---------  -------- 
  Total revenue (GAAP)    $ 63,488  $ 66,018  $ 65,112  $  22,006  $ 56,120 
                          ========  ========  ========  =========  ======== 
                                                                            
Income (loss) before                                                        
 taxes reconciliation                                                       
Income (loss) before                                                        
 taxes                    $ 24,795  $ 24,784  $ 25,385  $ (26,449) $ 12,715 
Taxable equivalent                                                          
 adjustment                   (357)     (380)     (370)      (368)     (365)
                          --------  --------  --------  ---------  -------- 
  Income (loss) before                                                      
   taxes (GAAP)           $ 24,438  $ 24,404  $ 25,015  $ (26,817) $ 12,350 
                          ========  ========  ========  =========  ======== 
                                                                            
Income tax expense                                                          
 (benefit) reconciliation                                                   
Income tax expense                                                          
 (benefit)                $  9,395  $  8,873  $  9,885  $(256,413) $    950 
Taxable equivalent                                                          
 adjustment                   (357)     (380)     (370)      (368)     (365)
                          --------  --------  --------  ---------  -------- 
  Income tax expense                                                        
   (benefit) (GAAP)       $  9,038  $  8,493  $  9,515  $(256,781) $    585 
                          ========  ========  ========  =========  ======== 
                                                                            
Book value per common                                                       
 share reconciliation                                                       
Tangible book value per                                                     
 common share             $  11.63  $  11.26  $  10.95  $   10.82  $   6.76 
Effect of goodwill and                                                      
 other intangibles             .03       .04       .04        .08       .09 
                          --------  --------  --------  ---------  -------- 
  Book value per common                                                     
   share (GAAP)           $  11.66  $  11.30  $  10.99  $   10.90  $   6.85 
                          ========  ========  ========  =========  ======== 
                                                                            
Average equity to assets                                                    
 reconciliation                                                             
Tangible common equity to                                                   
 assets                       9.22%     8.99%     9.02%      8.79%     5.66%
Effect of preferred                                                         
 equity                        .28      2.60      2.74       2.74      2.87 
                          --------  --------  --------  ---------  -------- 
  Tangible equity to                                                        
   assets                     9.50     11.59     11.76      11.53      8.53 
Effect of goodwill and                                                      
 other intangibles             .02       .03       .04        .04       .07 
                          --------  --------  --------  ---------  -------- 
  Equity to assets (GAAP)     9.52%    11.62%    11.80%     11.57%     8.60%
                          ========  ========  ========  =========  ======== 
                                                                            
Tangible common equity to                                                   
 risk-weighted assets                                                       
 reconciliation                                                             
Tangible common equity to                                                   
 risk-weighted assets        13.57%    13.17%    13.34%     13.16%     8.45%
Effect of other                                                             
 comprehensive income          .36       .39       .49        .29       .49 
Effect of deferred tax                                                      
 limitation                  (3.91)    (4.25)    (4.72)     (4.99)        - 
Effect of trust preferred     1.03      1.04      1.09       1.11      1.15 
Effect of preferred                                                         
 equity                          -      2.38      4.01       4.11      4.22 
                          --------  --------  --------  ---------  -------- 
  Tier I capital ratio                                                      
   (Regulatory)              11.05%    12.73%    14.21%     13.68%    14.31%
                          ========  ========  ========  =========  ======== 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
----------------------------------------------------------------------------
                                                                            
                                  2014                   2013               
                                -------- -----------------------------------
                                  First   Fourth    Third   Second    First 
(in millions)                    Quarter  Quarter  Quarter  Quarter  Quarter
                                -------- -------- -------- -------- --------
LOANS BY CATEGORY                                                           
Owner occupied commercial RE    $  1,142 $  1,134 $  1,129 $  1,119 $  1,130
Income producing commercial RE       624      623      614      629      674
Commercial & industrial              495      472      457      437      454
Commercial construction              148      149      137      133      152
                                -------- -------- -------- -------- --------
  Total commercial                 2,409    2,378    2,337    2,318    2,410
Residential mortgage                 866      875      888      876      850
Home equity lines of credit          447      441      421      402      396
Residential construction             318      328      318      332      372
Consumer installment                 316      307      303      261      166
                                -------- -------- -------- -------- --------
  Total loans                   $  4,356 $  4,329 $  4,267 $  4,189 $  4,194
                                ======== ======== ======== ======== ========
                                                                            
LOANS BY MARKET                                                             
North Georgia                   $  1,205 $  1,240 $  1,262 $  1,265 $  1,363
Atlanta MSA                        1,290    1,275    1,246    1,227    1,262
North Carolina                       563      572      575      576      575
Coastal Georgia                      425      423      421      397      398
Gainesville MSA                      262      255      253      256      259
East Tennessee                       272      280      277      282      282
South Carolina / Corporate           131       88       47       34        -
Other (2)                            208      196      186      152       55
                                -------- -------- -------- -------- --------
  Total loans                   $  4,356 $  4,329 $  4,267 $  4,189 $  4,194
                                ======== ======== ======== ======== ========
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development     $     37 $     39 $     40 $     42 $     57
  Land loans                          37       38       35       36       42
  Lot loans                          159      166      167      173      188
                                -------- -------- -------- -------- --------
    Total                            233      243      242      251      287
                                -------- -------- -------- -------- --------
                                                                            
House loans                                                                 
  Spec                                19       23       30       34       40
  Sold                                66       62       46       47       45
                                -------- -------- -------- -------- --------
    Total                             85       85       76       81       85
                                -------- -------- -------- -------- --------
Total residential construction  $    318 $    328 $    318 $    332 $    372
                                ======== ======== ======== ======== ========
                                                                            
(1) Excludes total loans of $19.3 million, $20.3 million, $23.3 million,    
 $25.7 million and $28.3 million as of March 31, 2014, December 31, 2013,   
 September 30, 2013, June 30, 2013 and March 31, 2013, respectively, that   
 are covered by the loss-sharing agreement with the FDIC, related to the    
 acquisition of Southern Community Bank. (2) Includes purchased indirect    
 auto loans that are not assigned to a geographic region.                   
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Loan Portfolio Composition at Period-End (1)                                
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                  2014          2013                        
                                -------- -----------------                  
                                                                      Year  
                                                            Linked    over  
                                  First   Fourth    First  Quarter    Year  
(in millions)                    Quarter  Quarter  Quarter  Change   Change 
                                -------- -------- -------- -------  ------- 
LOANS BY CATEGORY                                                           
Owner occupied commercial RE    $  1,142 $  1,134 $  1,130 $     8  $    12 
Income producing commercial RE       624      623      674       1      (50)
Commercial & industrial              495      472      454      23       41 
Commercial construction              148      149      152      (1)      (4)
                                -------- -------- --------                  
  Total commercial                 2,409    2,378    2,410      31       (1)
Residential mortgage                 866      875      850      (9)      16 
Home equity lines of credit          447      441      396       6       51 
Residential construction             318      328      372     (10)     (54)
Consumer installment                 316      307      166       9      150 
                                -------- -------- --------                  
  Total loans                   $  4,356 $  4,329 $  4,194      27      162 
                                ======== ======== ========                  
                                                                            
LOANS BY MARKET                                                             
North Georgia                   $  1,205 $  1,240 $  1,363     (35)    (158)
Atlanta MSA                        1,290    1,275    1,262      15       28 
North Carolina                       563      572      575      (9)     (12)
Coastal Georgia                      425      423      398       2       27 
Gainesville MSA                      262      255      259       7        3 
East Tennessee                       272      280      282      (8)     (10)
South Carolina / Corporate           131       88        -      43      131 
Other (2)                            208      196       55      12      153 
                                -------- -------- --------                  
  Total loans                   $  4,356 $  4,329 $  4,194      27      162 
                                ======== ======== ========                  
                                                                            
RESIDENTIAL CONSTRUCTION                                                    
Dirt loans                                                                  
  Acquisition & development     $     37 $     39 $     57      (2)     (20)
  Land loans                          37       38       42      (1)      (5)
  Lot loans                          159      166      188      (7)     (29)
                                -------- -------- --------                  
    Total                            233      243      287     (10)     (54)
                                -------- -------- --------                  
                                                                            
House loans                                                                 
  Spec                                19       23       40      (4)     (21)
  Sold                                66       62       45       4       21 
                                -------- -------- --------                  
    Total                             85       85       85       -        - 
                                -------- -------- --------                  
Total residential construction  $    318 $    328 $    372     (10)     (54)
                                ======== ======== ========                  
                                                                            
(1) Excludes total loans of $19.3 million, $20.3 million, $23.3 million,    
 $25.7 million and $28.3 million as of March 31, 2014, December 31, 2013,   
 September 30, 2013, June 30, 2013 and March 31, 2013, respectively, that   
 are covered by the loss-sharing agreement with the FDIC, related to the    
 acquisition of Southern Community Bank. (2) Includes purchased indirect    
 auto loans that are not assigned to a geographic region.                   
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
--------------------------------------------------------------------------- 
                                                 First Quarter 2014         
                                         ---------------------------------- 
                                            Non-                            
                                         performing  Foreclosed     Total   
(in thousands)                              Loans    Properties     NPAs    
                                         ----------  ----------  ---------- 
NONPERFORMING ASSETS BY CATEGORY                                            
Owner occupied CRE                       $    3,868  $    1,167  $    5,035 
Income producing CRE                          1,278       1,645       2,923 
Commercial & industrial                         822           -         822 
Commercial construction                         479           -         479 
                                         ----------  ----------  ---------- 
  Total commercial                            6,447       2,812       9,259 
Residential mortgage                         13,307       2,146      15,453 
Home equity lines of credit                   1,106         362       1,468 
Residential construction                      3,805         274       4,079 
Consumer installment                            585           -         585 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   25,250  $    5,594  $   30,844 
                                         ==========  ==========  ========== 
  Balance as a % of Unpaid Principal           65.8%       53.9%       63.2%
                                                                            
NONPERFORMING ASSETS BY MARKET                                              
North Georgia                            $   12,166  $    2,058  $   14,224 
Atlanta MSA                                   2,916         904       3,820 
North Carolina                                6,501         866       7,367 
Coastal Georgia                                 800       1,607       2,407 
Gainesville MSA                               1,145           -       1,145 
East Tennessee                                1,428         159       1,587 
South Carolina / Corporate                        -           -           - 
Other (3)                                       294           -         294 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   25,250  $    5,594  $   30,844 
                                         ==========  ==========  ========== 
                                                                            
                                                                            
NONPERFORMING ASSETS ACTIVITY                                               
Beginning Balance                        $   26,819  $    4,221  $   31,040 
Loans placed on non-accrual                   9,303           -       9,303 
Payments received                            (1,666)          -      (1,666)
Loan charge-offs                             (4,839)          -      (4,839)
Foreclosures                                 (4,367)      4,367           - 
Capitalized costs                                 -           -           - 
Property sales                                    -      (3,238)     (3,238)
Write downs                                       -        (277)       (277)
Net gains (losses) on sales                       -         521         521 
                                         ----------  ----------  ---------- 
  Ending Balance                         $   25,250  $    5,594  $   30,844 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
(3) Includes purchased indirect auto loans that are not assigned to a       
 geographic region.                                                         
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
--------------------------------------------------------------------------- 
                                                Fourth Quarter 2013         
                                         ---------------------------------- 
                                                                            
                                            Non-                            
                                         performing  Foreclosed             
(in thousands)                             Loans     Properties  Total NPAs 
                                         ----------  ----------  ---------- 
NONPERFORMING ASSETS BY CATEGORY                                            
Owner occupied CRE                       $    5,822  $      832  $    6,654 
Income producing CRE                          2,518           -       2,518 
Commercial & industrial                         427           -         427 
Commercial construction                         361           -         361 
                                         ----------  ----------  ---------- 
  Total commercial                            9,128         832       9,960 
Residential mortgage                         11,730       2,684      14,414 
Home equity lines of credit                   1,448         389       1,837 
Residential construction                      4,264         316       4,580 
Consumer installment                            249           -         249 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   26,819  $    4,221  $   31,040 
                                         ==========  ==========  ========== 
  Balance as a % of  Unpaid Principal          65.3%       44.5%       61.4%
                                                                            
NONPERFORMING ASSETS BY MARKET                                              
North Georgia                            $   12,352  $    2,494  $   14,846 
Atlanta MSA                                   2,830         684       3,514 
North Carolina                                6,567         683       7,250 
Coastal Georgia                               2,342         173       2,515 
Gainesville MSA                                 928           -         928 
East Tennessee                                1,800         187       1,987 
South Carolina / Corporate                        -           -           - 
Other (3)                                         -           -           - 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   26,819  $    4,221  $   31,040 
                                         ==========  ==========  ========== 
                                                                            
NONPERFORMING ASSETS ACTIVITY                                               
Beginning Balance                        $   28,088  $    4,467  $   30,555 
Loans placed on non-accrual                  11,043           -      11,043 
Payments received                            (1,688)          -      (1,688)
Loan charge-offs                             (4,621)          -      (4,621)
Foreclosures                                 (4,003)      4,003           - 
Capitalized costs                                 -           -           - 
Property sales                                    -      (4,684)     (4,684)
Write downs                                       -        (326)       (326)
Net gains (losses) on sales                       -         761         761 
                                         ----------  ----------  ---------- 
  Ending Balance                         $   26,819  $    4,221  $   31,040 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
(3) Includes purchased indirect auto loans that are not assigned to a       
 geographic region.                                                         
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality (1)                                                          
                                                                            
--------------------------------------------------------------------------- 
                                                 Third Quarter 2013         
                                         ---------------------------------- 
                                                                            
                                            Non-                            
                                         performing  Foreclosed             
(in thousands)                             Loans     Properties  Total NPAs 
                                         ----------  ----------  ---------- 
NONPERFORMING ASSETS BY CATEGORY                                            
Owner occupied CRE                       $    6,358  $      591  $    6,949 
Income producing CRE                          1,657         139       1,796 
Commercial & industrial                         609           -         609 
Commercial construction                         343         376         719 
                                         ----------  ----------  ---------- 
  Total commercial                            8,967       1,106      10,073 
Residential mortgage                         11,335       1,679      13,014 
Home equity lines of credit                   1,169         475       1,644 
Residential construction                      4,097       1,207       5,304 
Consumer installment                            520           -         520 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   26,088  $    4,467  $   30,055 
                                         ==========  ==========  ========== 
  Balance as a % of  Unpaid Principal          61.6%       41.5%       57.6%
                                                                            
NONPERFORMING ASSETS BY MARKET                                              
North Georgia                            $   13,652  $    1,726  $   15,378 
Atlanta MSA                                   3,096       1,026       4,122 
North Carolina                                5,680         762       6,442 
Coastal Georgia                                 995         928       1,923 
Gainesville MSA                               1,036           -       1,036 
East Tennessee                                1,629          25       1,654 
South Carolina / Corporate                        -           -           - 
Other (3)                                         -           -           - 
                                         ----------  ----------  ---------- 
  Total NPAs                             $   26,088  $    4,467  $   30,055 
                                         ==========  ==========  ========== 
                                                                            
NONPERFORMING ASSETS ACTIVITY                                               
Beginning Balance                        $   27,864  $    3,936  $   31,800 
Loans placed on non-accrual                   9,959           -       9,959 
Payments received                            (3,601)          -      (3,601)
Loan charge-offs                             (5,395)          -      (5,395)
Foreclosures                                 (2,739)      2,739           - 
Capitalized costs                                 -           7           7 
Property sales                                    -      (2,534)     (2,534)
Write downs                                       -        (329)       (329)
Net gains (losses) on sales                       -         648         648 
                                         ----------  ----------  ---------- 
  Ending Balance                         $   26,088  $    4,467  $   30,555 
                                         ==========  ==========  ========== 
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
(3) Includes purchased indirect auto loans that are not assigned to a       
 geographic region.                                                         
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Financial Highlights                                                        
Credit Quality(1)                                                           
                                                                            
--------------------------------------------------------------------------- 
                                       Fourth Quarter                       
                 First Quarter 2014         2013         Third Quarter 2013 
                 ------------------  ------------------  ------------------ 
                              Net                 Net                 Net   
                            Charge-             Charge-             Charge- 
                    Net     Offs to     Net     Offs to     Net     Offs to 
                  Charge-   Average   Charge-   Average   Charge-   Average 
(in thousands)      Offs   Loans(2)    Offs    Loans(2)     Offs   Loans(2) 
                 --------- --------  --------  --------  --------- -------- 
NET CHARGE-OFFS BY                                                          
 CATEGORY                                                                   
Owner occupied                                                              
 CRE             $     278      .10% $  1,638       .57% $   1,641      .58%
Income producing                                                            
 CRE                   205      .13       320       .21        216      .14 
Commercial &                                                                
 industrial            421      .35      (149)     (.13)       136      .12 
Commercial                                                                  
 construction            -        -        (9)     (.02)       133      .39 
                 ---------           --------            ---------          
  Total                                                                     
   commercial          904      .15     1,800       .30      2,126      .36 
Residential                                                                 
 mortgage            1,515      .71     1,426       .64        693      .31 
Home equity lines                                                           
 of credit             993      .90       417       .38        382      .37 
Residential                                                                 
 construction          212      .27       327       .40      1,072     1.31 
Consumer                                                                    
 installment           415      .54       475       .62        200      .28 
                 ---------           --------            ---------          
  Total          $   4,039      .38  $  4,445       .41  $   4,473      .42 
                 =========           ========            =========          
                                                                            
                                                                            
NET CHARGE-OFFS BY MARKET                                                   
North Georgia    $   1,272      .42% $  1,603       .51% $   2,090      .66%
Atlanta MSA          1,232      .39       636       .20      1,013      .33 
North Carolina         577      .41     1,104       .76        704      .49 
Coastal Georgia        512      .49       345       .33        139      .14 
Gainesville MSA        141      .22       346       .54         97      .15 
East Tennessee         239      .35       323       .46        359      .51 
South Carolina /                                                            
 Corporate               -        -         -         -          -        - 
Other (3)               66      .14        88       .20         71      .17 
                 ---------           --------            ---------          
  Total          $   4,039      .38  $  4,445       .41  $   4,473      .42 
                 =========           ========            =========          
                                                                            
(1) Excludes non-performing loans and foreclosed properties covered by the  
 loss-sharing agreement with the FDIC, related to the acquisition of        
 Southern Community Bank.                                                   
(2) Annualized.                                                             
(3) Includes purchased indirect auto loans that are not assigned to a       
 geographic region.                                                         
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Statement of Income (Unaudited)                                
                                                                            
----------------------------------------------------------------------------
                                                        Three Months Ended  
                                                            March 31,       
                                                     -----------------------
(in thousands, except per share data)                    2014        2013   
                                                     ----------- -----------
                                                                            
Interest revenue:                                                           
  Loans, including fees                              $    47,688 $    50,935
  Investment securities, including tax exempt of                            
   $188 and $212                                          11,607       9,944
  Deposits in banks and short-term investments               843         870
                                                     ----------- -----------
      Total interest revenue                              60,138      61,749
                                                     ----------- -----------
                                                                            
Interest expense:                                                           
  Deposits:                                                                 
    NOW                                                      440         454
    Money market                                             563         562
    Savings                                                   20          36
    Time                                                   1,771       3,291
                                                     ----------- -----------
      Total deposit interest expense                       2,794       4,343
  Short-term borrowings                                      840         516
  Federal Home Loan Bank advances                             58          19
  Long-term debt                                           2,634       2,662
                                                     ----------- -----------
      Total interest expense                               6,326       7,540
                                                     ----------- -----------
      Net interest revenue                                53,812      54,209
  Provision for credit losses                              2,500      11,000
                                                     ----------- -----------
      Net interest revenue after provision for                              
       credit losses                                      51,312      43,209
                                                     ----------- -----------
                                                                            
Fee revenue:                                                                
  Service charges and fees                                 7,898       7,403
  Mortgage loan and other related fees                     1,354       2,655
  Brokerage fees                                           1,177         767
  Securities gains, net                                      217         116
  Other                                                    1,530       1,970
                                                     ----------- -----------
    Total fee revenue                                     12,176      12,911
                                                     ----------- -----------
    Total revenue                                         63,488      56,120
                                                     ----------- -----------
                                                                            
Operating expenses:                                                         
  Salaries and employee benefits                          24,396      23,592
  Communications and equipment                             3,239       3,046
  Occupancy                                                3,378       3,367
  Advertising and public relations                           626         938
  Postage, printing and supplies                             776         863
  Professional fees                                        1,427       2,366
  Foreclosed property                                        116       2,333
  FDIC assessments and other regulatory charges            1,353       2,505
  Amortization of intangibles                                387         705
  Other                                                    3,352       4,055
                                                     ----------- -----------
    Total operating expenses                              39,050      43,770
                                                     ----------- -----------
    Net income before income taxes                        24,438      12,350
  Income tax expense                                       9,038         585
                                                     ----------- -----------
    Net income                                            15,400      11,765
  Preferred stock dividends and discount accretion           439       3,052
                                                     ----------- -----------
    Net income available to common shareholders      $    14,961 $     8,713
                                                     =========== ===========
                                                                            
Earnings per common share                                                   
  Basic                                              $       .25 $       .15
  Diluted                                                    .25         .15
Weighted average common shares outstanding                                  
  Basic                                                   60,059      58,081
  Diluted                                                 60,061      58,081
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Consolidated Balance Sheet (Unaudited)                                      
                                                                            
--------------------------------------------------------------------------- 
(in thousands, except share and per   March 31,   December 31,   March 31,  
 share data)                             2014         2013          2013    
                                     -----------  ------------  ----------- 
                                                                            
ASSETS                                                                      
  Cash and due from banks            $    52,813  $     71,230  $    57,638 
  Interest-bearing deposits in banks     110,529       119,669      107,390 
  Short-term investments                  49,999        37,999       82,000 
                                     -----------  ------------  ----------- 
    Cash and cash equivalents            213,341       228,898      247,028 
  Securities available for sale        1,837,676     1,832,217    1,909,426 
  Securities held to maturity (fair                                         
   value $473,136, $485,585 and                                             
   $247,087)                             464,697       479,742      231,087 
  Mortgage loans held for sale            10,933        10,319       18,290 
  Loans, net of unearned income        4,355,708     4,329,266    4,193,560 
    Less allowance for loan losses       (75,223)      (76,762)    (105,753)
                                     -----------  ------------  ----------- 
      Loans, net                       4,280,485     4,252,504    4,087,807 
  Assets covered by loss sharing                                            
   agreements with the FDIC               21,353        22,882       42,096 
  Premises and equipment, net            161,540       163,589      168,036 
  Bank owned life insurance               80,790        80,670       82,114 
  Accrued interest receivable             18,572        19,598       18,302 
  Intangible assets                        3,093         3,480        4,805 
  Foreclosed property                      5,594         4,221       16,734 
  Net deferred tax asset                 243,683       258,518            - 
  Derivative financial instruments        21,563        23,833          601 
  Other assets                            34,917        44,948       23,042 
                                     -----------  ------------  ----------- 
    Total assets                     $ 7,398,237  $  7,425,419  $ 6,849,368 
                                     ===========  ============  =========== 
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Liabilities:                                                                
  Deposits:                                                                 
    Demand                           $ 1,471,781  $  1,388,512  $ 1,298,425 
    NOW                                1,392,863     1,427,939    1,281,454 
    Money market                       1,235,429     1,227,575    1,165,836 
    Savings                              270,910       251,125      243,347 
    Time:                                                                   
      Less than $100,000                 833,188       892,961    1,019,396 
      Greater than $100,000              572,889       588,689      685,174 
    Brokered                             470,481       424,704      332,220 
                                     -----------  ------------  ----------- 
        Total deposits                 6,247,541     6,201,505    6,025,852 
  Short-term borrowings                  123,075        53,241       51,999 
  Federal Home Loan Bank advances         50,125       120,125          125 
  Long-term debt                         129,865       129,865      124,825 
  Derivative financial instruments        42,309        46,232       14,556 
  Unsettled securities purchases          63,999        29,562            - 
  Accrued expenses and other                                                
   liabilities                            37,593        49,174       39,793 
                                     -----------  ------------  ----------- 
    Total liabilities                  6,694,507     6,629,704    6,257,150 
                                     -----------  ------------  ----------- 
Shareholders' equity:                                                       
  Preferred stock, $1 par value;                                            
   10,000,000 shares authorized;                                            
    Series A; $10 stated value; 0, 0                                        
     and 21,700 shares issued and                                           
     outstanding                               -             -          217 
    Series B; $1,000 stated value;                                          
     0, 105,000 and 180,000 shares                                          
     issued and outstanding                    -       105,000      178,937 
    Series D; $1,000 stated value;                                          
     0, 16,613 and 16,613 shares                                            
     issued and outstanding                    -        16,613       16,613 
  Common stock, $1 par value;                                               
   100,000,000 shares authorized;                                           
   50,011,094, 46,243,345 and                                               
   43,063,761 shares issued and                                             
   outstanding                            50,011        46,243       43,064 
  Common stock, non-voting, $1 par                                          
   value; 30,000,000 shares                                                 
   authorized; 10,080,787,                                                  
   13,188,206 and 14,703,636 shares                                         
   issued and outstanding                 10,081        13,188       14,704 
  Common stock issuable; 237,763,                                           
   241,832 and 133,469 shares              3,840         3,930        2,726 
  Capital surplus                      1,091,696     1,078,676    1,059,222 
  Accumulated deficit                   (433,130)     (448,091)    (700,440)
  Accumulated other comprehensive                                           
   loss                                  (18,768)      (19,844)     (22,825)
                                     -----------  ------------  ----------- 
    Total shareholders' equity           703,730       795,715      592,218 
                                     -----------  ------------  ----------- 
    Total liabilities and                                                   
     shareholders' equity            $ 7,398,237  $  7,425,419  $ 6,849,368 
                                     ===========  ============  =========== 
                                                                            
                                                                            
                                                                            
UNITED COMMUNITY BANKS, INC.                                                
Average Consolidated Balance Sheets and Net Interest Analysis               
For the Three Months Ended March 31,                                        
                                                                            
--------------------------------------------------------------------------- 
                               2014                         2013            
                    --------------------------  --------------------------- 
(dollars in                                                                 
 thousands, taxable   Average             Avg.    Average              Avg. 
 equivalent)          Balance   Interest  Rate    Balance    Interest  Rate 
                    ----------  --------  ----  ----------  --------- ----- 
Assets:                                                                     
Interest-earning                                                            
 assets:                                                                    
  Loans, net of                                                             
   unearned income                                                          
   (1)(2)           $4,355,572  $ 47,868  4.46% $4,196,757  $  51,000  4.93%
  Taxable securities                                                        
   (3)               2,300,316    11,419  1.99   2,119,085      9,732  1.84 
  Tax-exempt                                                                
   securities (1)(3)    20,173       308  6.11      21,733        347  6.39 
  Federal funds sold                                                        
   and other                                                                
   interest-earning                                                         
   assets              150,841       900  2.39     209,674      1,035  1.97 
                    ----------  --------        ----------  ---------       
    Total interest-                                                         
     earning assets  6,826,902    60,495  3.58   6,547,249     62,114  3.84 
                    ----------  --------        ----------  ---------       
Non-interest-earning                                                        
 assets:                                                                    
  Allowance for loan                                                        
   losses              (77,491)                   (110,941)                 
  Cash and due from                                                         
   banks                62,054                      64,294                  
  Premises and                                                              
   equipment           162,788                     169,280                  
  Other assets (3)     410,175                     164,250                  
                    ----------                  ----------                  
    Total assets    $7,384,428                  $6,834,132                  
                    ==========                  ==========                  
                                                                            
Liabilities and                                                             
 Shareholders'                                                              
 Equity:                                                                    
Interest-bearing                                                            
 liabilities:                                                               
  Interest-bearing                                                          
   deposits:                                                                
    NOW             $1,416,119       440   .13  $1,303,308        454   .14 
    Money market     1,376,993       563   .17   1,257,409        562   .18 
    Savings            259,548        20   .03     234,110         36   .06 
    Time less than                                                          
     $100,000          877,695     1,013   .47   1,039,707      1,749   .68 
    Time greater                                                            
     than $100,000     578,190       918   .64     694,553      1,477   .86 
    Brokered time                                                           
     deposits          287,979      (160) (.23)    175,128         65   .15 
                    ----------  --------        ----------  ---------       
      Total                                                                 
       interest-                                                            
       bearing                                                              
       deposits      4,796,524     2,794   .24   4,704,215      4,343   .37 
                    ----------  --------        ----------  ---------       
                                                                            
    Federal funds                                                           
     purchased and                                                          
     other                                                                  
     borrowings        112,583       840  3.03      72,157        516  2.90 
    Federal Home                                                            
     Loan Bank                                                              
     advances          125,069        58   .19      33,069         19   .23 
    Long-term debt     129,865     2,634  8.23     124,816      2,662  8.65 
                    ----------  --------        ----------  ---------       
      Total borrowed                                                        
       funds           367,517     3,532  3.90     230,042      3,197  5.64 
                    ----------  --------        ----------  ---------       
                                                                            
Total interest-                                                             
 bearing liabilities 5,164,041     6,326   .50   4,934,257      7,540   .62 
                                --------                    ---------       
  Non-interest-                                                             
   bearing                                                                  
   liabilities:                                                             
  Non-interest-                                                             
   bearing deposits  1,400,619                   1,241,527                  
  Other liabilities    116,667                      70,839                  
                    ----------                  ----------                  
      Total                                                                 
       liabilities   6,681,327                   6,246,623                  
Shareholders' equity   703,101                     587,509                  
                    ----------                  ----------                  
      Total                                                                 
       liabilities                                                          
       and                                                                  
       shareholders'                                                        
       equity       $7,384,428                  $6,834,132                  
                    ==========                  ==========                  
                                                                            
Net interest revenue            $ 54,169                    $  54,574       
                                ========                    =========       
Net interest-rate                                                           
 spread                                   3.08%                        3.22%
                                          ====                        ===== 
                                                                            
Net interest margin                                                         
 (4)                                      3.21%                        3.37%
                                          ====                        ===== 
                                                                            
(1) Interest revenue on tax-exempt securities and loans has been increased  
 to reflect comparable interest on taxable securities and loans. The rate   
 used was 39%, reflecting the statutory federal income tax rate and the     
 federal tax adjusted state income tax rate.                                
(2) Included in the average balance of loans outstanding are loans where    
 the accrual of interest has been discontinued and loans that are held for  
 sale.                                                                      
(3) Securities available for sale are shown at amortized cost. Pretax       
 unrealized losses of $4.6 million in 2014 and pretax unrealized gains of   
 $17.1 million in 2013 are included in other assets for purposes of this    
 presentation.                                                              
(4) Net interest margin is taxable equivalent net-interest revenue divided  
 by average interest-earning assets.                                        

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