Press Release Details

BLAIRSVILLE, GA -- (Marketwired) -- 04/24/14 --  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
(in thousands, except per share data; taxable equivalent)			First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First  Quarter				First Quarter 2014-2013 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
				First			Fourth			First			Linked Quarter				Year over 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
(in thousands)			Non-performing Loans				Foreclosed 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
(in thousands)			Non-performing Loans				Foreclosed 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)
		First Quarter 2014						Fourth Quarter 2013							Third Quarter 2013
(in thousands)		Net Charge-Offs			Net Charge-Offs to Average Loans (2)			Net Charge-Offs				Net Charge-Offs to Average Loans (2)			Net Charge-Offs			Net Charge-Offs to Average 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 share data)						March 31, 2014				December 31, 2013				March 31, 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 equivalent)				Average Balance				Interest				Avg. Rate			Average Balance				Interest			Avg. 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.

For more information:
Rex S. Schuette
Chief Financial Officer
(706) 781-2266
Rex_Schuette@ucbi.com

Source: United Community Banks, Inc.

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