Press Release Details

BLAIRSVILLE, GA -- (Marketwired) -- 07/24/14 -- United Community Banks, Inc. (NASDAQ: UCBI)

• Earnings per diluted share of 27 cents, up 8 percent from first quarter
• Loans up $54 million, or 5 percent annualized
• Core transaction deposits up $52 million, or 6 percent annualized
• SBA lending team added to expand business

United Community Banks, Inc. (NASDAQ: UCBI) ("United") today reported net income of $16.4 million, or 27 cents per diluted share, for the second quarter of 2014. Earnings per share were up 8 percent from the first quarter, reflecting growth in net interest revenue and fee revenue, a lower provision for loan losses and the elimination of preferred stock dividends. For the first six months, United reported net income of $31.8 million, or 52 cents per diluted share.

"I am very pleased with our second quarter progress in growing our business and earnings," said Jimmy Tallent, president and chief executive officer. "We have had four consecutive quarters of steady earnings per share growth since the classified asset sales a year ago and are focused on continuing that trend."

Second quarter taxable equivalent net interest revenue totaled $55.0 million, up $781,000 from the first quarter and the same as the second quarter of 2013. The taxable equivalent net interest margin was 3.21 percent, equal to the first quarter and down 12 basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue while also managing our exposure to changes in interest rates are top priorities for continued growth in earnings per share," said Tallent. "We remain sharply focused on growing loans and core deposits to increase net interest revenue. During the second quarter we completed certain balance sheet restructuring activities that included the reduction/restructuring of the securities portfolio, interest rate hedges and wholesale borrowings. The consequential changes in our securities portfolio, wholesale borrowings and interest rate hedges allowed us to maintain our margin at 3.21 percent and prevent further margin decline in 2014, while maintaining our interest rate risk and sensitivity levels. We sold $237 million in investment securities at a gain of $4.4 million, which was offset by a similar charge from the repayment of $44 million in costly structured wholesale borrowings."

The second quarter provision for credit losses was $2.2 million, down $300,000 from the first quarter and down $46.3 million from the second quarter of 2013. Second quarter net charge-offs were $4.18 million, compared with $4.04 million in the first quarter and $72.4 million a year ago. Nonperforming assets at quarter-end were $23.7 million, down 23 percent from the first quarter and representing .32 percent of total assets. This compares to .42 percent at the end of the first quarter, and .44 percent at the end of the second quarter of 2013.

Second quarter fee revenue totaled $14.1 million, up $1.97 million from the first quarter with increases in every category. When compared to a year earlier, fee revenue was down $1.80 million primarily due to lower mortgage fees and a $1.37 million gain last year on a bank-owned life insurance policy. Service charges and fees were up approximately $600,000 from both the first quarter and a year ago due to strong debit card transaction volume and new service fees effective January 1. Mortgage fees were up $523,000 from the first quarter but down $1.13 million from a year ago, the decrease reflecting slower mortgage refinancing activity. Closed mortgage loans totaled $68.5 million in the second quarter, compared with $46.0 million in the first quarter and $95.2 million in the second quarter of 2013. Customer swap fees included in other fee revenue were up $357,000 from the first quarter due to an increase in commercial lending activities. Also included in other fee revenue were gains on the sale of SBA loans of $744,000. "Going forward, our new focus on growing our SBA business includes selling loans and taking the related gains, while retaining servicing on the loans sold," commented Tallent.

Operating expenses, excluding foreclosed property costs, were $40.4 million in the second quarter compared to $38.9 million in the first quarter and $43.7 million a year ago. Decreases in nearly every expense category from a year ago reflect successful efforts to control operating costs. The $1.48 million increase from the first quarter was mostly in advertising and public relations, professional fees and other expenses that included a number of non-core costs. The increase in advertising and public relations primarily reflects the cost for new products and updating brochures and other branded materials. The increase in professional fees is due to higher legal and consulting costs resulting from corporate initiatives. The increase in other expenses primarily reflects higher lending support costs and a $367,000 loss from the consolidation and sale of a branch facility.

Foreclosed property costs were $102,000 in the second quarter compared to $116,000 in the first quarter and $5.15 million a year ago. These costs were elevated in the second quarter of 2013 by the accelerated sales of classified assets.

On June 30, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.8 percent; Total Risk-Based of 13.0 percent; Tier 1 Common Risk-Based of 10.7 percent; Tier 1 Leverage of 8.3 percent; and Tangible Equity-to-Assets of 9.6 percent.

"We had a solid start in 2014 and continued to build momentum through the second quarter," Tallent said. "Stabilizing our net interest margin and growing loans, deposits and fee revenue will drive earnings growth. To that end, we continue to expand our business capabilities and have added senior people to our commercial and specialized lending groups. In the second quarter we completed the acquisition of a specialty SBA business in Columbia, South Carolina, and added a newly formed SBA national sales team led by Rich Bradshaw, who has a long record of success in SBA and other specialized lending areas. This team will significantly strengthen our SBA and USDA lending capabilities within and beyond our existing footprint. I am excited about the opportunities ahead and remain convinced 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, July 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 60193841. 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's largest full-service banks, operating 103 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in personalized community banking services for individuals, small businesses and corporations. A full range of consumer and commercial banking services includes mortgage, advisory, treasury management and other products. National survey organizations consistently recognize United Community Bank for outstanding customer service. 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
																									Second
				2014								2013													Quarter
(in thousands, except per share				Second				First				Fourth				Third				Second					2014-2013
data; taxable equivalent)				Quarter				Quarter				Quarter				Quarter				Quarter					Change
INCOME SUMMARY
Interest revenue				$	61,783			$	60,495			$	61,695			$	61,426			$	62,088
Interest expense					6,833				6,326				5,816				7,169				7,157
		Net interest revenue			54,950				54,169				55,879				54,257				54,931				-	%
Provision for credit losses					2,200				2,500				3,000				3,000				48,500
Fee revenue					14,143				12,176				13,519				14,225				15,943				(11	)
		Total revenue			66,893				63,845				66,398				65,482				22,374
Operating expenses					40,532				39,050				41,614				40,097				48,823				(17	)
	Income (loss) before income taxes				26,361				24,795				24,784				25,385				(26,449	)
Income tax expense (benefit)					10,004				9,395				8,873				9,885				(256,413	)
		Net income			16,357				15,400				15,911				15,500				229,964
Preferred dividends and discount accretion					-				439				2,912				3,059				3,055
Net income available to common shareholders				$	16,357			$	14,961			$	12,999			$	12,441			$	226,909
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	.27			$	.25			$	.22			$	.21			$	3.90
		Book value			11.94				11.66				11.30				10.99				10.90				10
		Tangible book value (2)			11.91				11.63				11.26				10.95				10.82				10
	Key performance ratios:
		Return on common equity (1)(3)			8.99	%			8.64	%			7.52	%			7.38	%			197.22	%
		Return on assets (3)			.88				.85				.86				.86				13.34
		Net interest margin (3)			3.21				3.21				3.26				3.26				3.33
		Efficiency ratio			58.65				59.05				60.02				58.55				68.89
		Equity to assets			9.61				9.52				11.62				11.80				11.57			(4)
		Tangible equity to assets (2)			9.58				9.50				11.59				11.76				11.53			(4)
		Tangible common equity to assets (2)			9.58				9.22				8.99				9.02				8.79			(4)
		Tangible common equity to risk- weighted assets (2)			13.92				13.63				13.18				13.34				13.16
ASSET QUALITY *
	Non-performing loans			$	20,724			$	25,250			$	26,819			$	26,088			$	27,864
	Foreclosed properties				2,969				5,594				4,221				4,467				3,936
		Total non-performing assets (NPAs)			23,693				30,844				31,040				30,555				31,800
	Allowance for loan losses				73,248				75,223				76,762				80,372				81,845
	Net charge-offs				4,175				4,039				4,445				4,473				72,408
	Allowance for loan losses to loans				1.66	%			1.73	%			1.77	%			1.88	%			1.95	%
	Net charge-offs to average loans (3)				.38				.38				.41				.42				6.87
	NPAs to loans and foreclosed properties				.54				.71				.72				.72				.76
	NPAs to total assets				.32				.42				.42				.42				.44
AVERAGE BALANCES ($ in millions)
	Loans			$	4,376			$	4,356			$	4,315			$	4,250			$	4,253				3
	Investment securities				2,326				2,320				2,280				2,178				2,161				8
	Earning assets				6,861				6,827				6,823				6,615				6,608				4
	Total assets				7,418				7,384				7,370				7,170				6,915				7
	Deposits				6,187				6,197				6,190				5,987				5,983				3
	Shareholders' equity				713				703				856				846				636				12
	Common shares - basic (thousands)				60,712				60,059				59,923				59,100				58,141
	Common shares - diluted (thousands)				60,714				60,061				59,925				59,202				58,141
AT PERIOD END ($ in millions)
	Loans *			$	4,410			$	4,356			$	4,329			$	4,267			$	4,189				5
	Investment securities				2,190				2,302				2,312				2,169				2,152				2
	Total assets				7,352				7,398				7,425				7,243				7,163				3
	Deposits				6,164				6,248				6,202				6,113				6,012				3
	Shareholders' equity				722				704				796				852				829				(13	)
	Common shares outstanding (thousands)				60,139				60,092				59,432				59,412				57,831
(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.
Financial Highlights
Selected Financial Information
			For the Six
			Months Ended						YTD
(in thousands, except per share			June 30,						2014-2013
data; taxable equivalent)			2014			2013			Change
INCOME SUMMARY
Interest revenue			$	122,278		$	124,202
Interest expense				13,159			14,697
		Net interest revenue		109,119			109,505		-	%
Provision for credit losses				4,700			59,500
Fee revenue				26,319			28,854		(9	)
		Total revenue		130,738			78,859
Operating expenses				79,582			92,593		(14	)
		Income (loss) before income taxes		51,156			(13,734	)
Income tax expense (benefit)				19,399			(255,463	)
		Net income		31,757			241,729
Preferred dividends and discount accretion				439			6,107
Net income available to common shareholders			$	31,318		$	235,622
PERFORMANCE MEASURES
	Per common share:
		Diluted income	$	.52		$	4.05
		Book value		11.94			10.90		10
		Tangible book value (2)		11.91			10.82		10
	Key performance ratios:
		Return on common equity (1)(3)		8.82	%		108.34	%
		Return on assets (3)		.87			7.09
		Net interest margin (3)		3.21			3.35
		Efficiency ratio		58.85			66.98
		Equity to assets		9.56			8.90
		Tangible equity to assets (2)		9.54			8.83
		Tangible common equity to assets (2)		9.40			5.99
		Tangible common equity to risk- weighted assets (2)		13.92			13.16
ASSET QUALITY *
	Non-performing loans		$	20,724		$	27,864
	Foreclosed properties			2,969			3,936
		Total non-performing assets (NPAs)		23,693			31,800
	Allowance for loan losses			73,248			81,845
	Net charge-offs			8,214			84,792
	Allowance for loan losses to loans			1.66	%		1.95	%
	Net charge-offs to average loans (3)			.38			4.07
	NPAs to loans and foreclosed properties			.54			.76
	NPAs to total assets			.32			.44
AVERAGE BALANCES ($ in millions)
	Loans		$	4,366		$	4,225		3
	Investment securities			2,323			2,151		8
	Earning assets			6,844			6,578		4
	Total assets			7,401			6,875		8
	Deposits			6,192			5,964		4
	Shareholders' equity			708			612		16
	Common shares - basic (thousands)			60,386			58,111
	Common shares - diluted (thousands)			60,388			58,111
AT PERIOD END ($ in millions)
	Loans *		$	4,410		$	4,189		5
	Investment securities			2,190			2,152		2
	Total assets			7,352			7,163		3
	Deposits			6,164			6,012		3
	Shareholders' equity			722			829		(13	)
	Common shares outstanding (thousands)			60,139			57,831
(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		Second			First			Fourth			Third			Second
data; taxable equivalent)		Quarter			Quarter			Quarter			Quarter			Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent		$	61,783		$	60,495		$	61,695		$	61,426		$	62,088
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Interest revenue (GAAP)	$	61,406		$	60,138		$	61,315		$	61,056		$	61,720
Net interest revenue reconciliation
Net interest revenue - taxable equivalent		$	54,950		$	54,169		$	55,879		$	54,257		$	54,931
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Net interest revenue (GAAP)	$	54,573		$	53,812		$	55,499		$	53,887		$	54,563
Total revenue reconciliation
Total operating revenue		$	66,893		$	63,845		$	66,398		$	65,482		$	22,374
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Total revenue (GAAP)	$	66,516		$	63,488		$	66,018		$	65,112		$	22,006
Income (loss) before taxes reconciliation
Income (loss) before taxes		$	26,361		$	24,795		$	24,784		$	25,385		$	(26,449	)
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Income (loss) before taxes (GAAP)	$	25,984		$	24,438		$	24,404		$	25,015		$	(26,817	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)		$	10,004		$	9,395		$	8,873		$	9,885		$	(256,413	)
Taxable equivalent adjustment			(377	)		(357	)		(380	)		(370	)		(368	)
	Income tax expense (benefit) (GAAP)	$	9,627		$	9,038		$	8,493		$	9,515		$	(256,781	)
Book value per common share reconciliation
Tangible book value per common share		$	11.91		$	11.63		$	11.26		$	10.95		$	10.82
Effect of goodwill and other intangibles			.03			.03			.04			.04			.08
	Book value per common share (GAAP)	$	11.94		$	11.66		$	11.30		$	10.99		$	10.90
Average equity to assets reconciliation
Tangible common equity to assets			9.58	%		9.22	%		8.99	%		9.02	%		8.79	%
Effect of preferred equity			-			.28			2.60			2.74			2.74
	Tangible equity to assets		9.58			9.50			11.59			11.76			11.53
Effect of goodwill and other intangibles			.03			.02			.03			.04			.04
	Equity to assets (GAAP)		9.61	%		9.52	%		11.62	%		11.80	%		11.57	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets			13.92	%		13.63	%		13.18	%		13.34	%		13.16	%
Effect of other comprehensive income			.53			.36			.39			.49			.29
Effect of deferred tax limitation			(3.74	)		(3.92	)		(4.26	)		(4.72	)		(4.99	)
Effect of trust preferred			1.04			1.03			1.04			1.09			1.11
Effect of preferred equity			-			-			2.39			4.01			4.11
	Tier I capital ratio (Regulatory)		11.75	%		11.10	%		12.74	%		14.21	%		13.68	%

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
		For the Six Months
(in thousands, except per share		Ended June 30,
data; taxable equivalent)		2014			2013
Interest revenue reconciliation
Interest revenue - taxable equivalent		$	122,278		$	124,202
Taxable equivalent adjustment			(734	)		(733	)
	Interest revenue (GAAP)	$	121,544		$	123,469
Net interest revenue reconciliation
Net interest revenue - taxable equivalent		$	109,119		$	109,505
Taxable equivalent adjustment			(734	)		(733	)
	Net interest revenue (GAAP)	$	108,385		$	108,772
Total revenue reconciliation
Total operating revenue		$	130,738		$	78,859
Taxable equivalent adjustment			(734	)		(733	)
	Total revenue (GAAP)	$	130,004		$	78,126
Income (loss) before taxes reconciliation
Income (loss) before taxes		$	51,156		$	(13,734	)
Taxable equivalent adjustment			(734	)		(733	)
	Income (loss) before taxes (GAAP)	$	50,422		$	(14,467	)
Income tax expense (benefit) reconciliation
Income tax expense (benefit)		$	19,399		$	(255,463	)
Taxable equivalent adjustment			(734	)		(733	)
	Income tax expense (benefit) (GAAP)	$	18,665		$	(256,196	)
Book value per common share reconciliation
Tangible book value per common share		$	11.91		$	10.82
Effect of goodwill and other intangibles			.03			.08
	Book value per common share (GAAP)	$	11.94		$	10.90
Average equity to assets reconciliation
Tangible common equity to assets			9.40	%		5.99	%
Effect of preferred equity			.14			2.84
	Tangible equity to assets		9.54			8.83
Effect of goodwill and other intangibles			.02			.07
	Equity to assets (GAAP)		9.56	%		8.90	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets			13.92	%		13.16	%
Effect of other comprehensive income			.53			.29
Effect of deferred tax limitation			(3.74	)		(4.99	)
Effect of trust preferred			1.04			1.11
Effect of preferred equity			-			4.11
	Tier I capital ratio (Regulatory)		11.75	%		13.68	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
			2014						2013
			Second			First			Fourth			Third			Second
(in millions)			Quarter			Quarter			Quarter			Quarter			Quarter
LOANS BY CATEGORY
Owner occupied commercial RE			$	1,163		$	1,142		$	1,134		$	1,129		$	1,119
Income producing commercial RE				598			624			623			614			629
Commercial & industrial				554			495			472			457			437
Commercial construction				160			148			149			137			133
		Total commercial		2,475			2,409			2,378			2,337			2,318
Residential mortgage				861			866			875			888			876
Home equity lines of credit				451			447			441			421			402
Residential construction				302			318			328			318			332
Consumer installment				321			316			307			303			261
		Total loans	$	4,410		$	4,356		$	4,329		$	4,267		$	4,189
LOANS BY MARKET
North Georgia			$	1,175		$	1,205		$	1,240		$	1,262		$	1,265
Atlanta MSA				1,305			1,290			1,275			1,246			1,227
North Carolina				555			563			572			575			576
Coastal Georgia				426			425			423			421			397
Gainesville MSA				257			262			255			253			256
East Tennessee				270			272			280			277			282
South Carolina / Corporate				206			131			88			47			34
Other (2)				216			208			196			186			152
		Total loans	$	4,410		$	4,356		$	4,329		$	4,267		$	4,189
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development		$	34		$	37		$	39		$	40		$	42
	Land loans			36			37			38			35			36
	Lot loans			151			159			166			167			173
		Total		221			233			243			242			251
House loans
	Spec			19			19			23			30			34
	Sold			62			66			62			46			47
		Total		81			85			85			76			81
Total residential construction			$	302		$	318		$	328		$	318		$	332
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 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			Linked Quarter Change				Year over Year Change
			Second			First			Second
(in millions)			Quarter			Quarter			Quarter
LOANS BY CATEGORY
Owner occupied commercial RE			$	1,163		$	1,142		$	1,119		$	21			$	44
Income producing commercial RE				598			624			629			(26	)			(31	)
Commercial & industrial				554			495			437			59				117
Commercial construction				160			148			133			12				27
		Total commercial		2,475			2,409			2,318			66				157
Residential mortgage				861			866			876			(5	)			(15	)
Home equity lines of credit				451			447			402			4				49
Residential construction				302			318			332			(16	)			(30	)
Consumer installment				321			316			261			5				60
		Total loans	$	4,410		$	4,356		$	4,189			54				221
LOANS BY MARKET
North Georgia			$	1,175		$	1,205		$	1,265			(30	)			(90	)
Atlanta MSA				1,305			1,290			1,227			15				78
North Carolina				555			563			576			(8	)			(21	)
Coastal Georgia				426			425			397			1				29
Gainesville MSA				257			262			256			(5	)			1
East Tennessee				270			272			282			(2	)			(12	)
South Carolina / Corporate				206			131			34			75				172
Other (2)				216			208			152			8				64
		Total loans	$	4,410		$	4,356		$	4,189			54				221
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development		$	34		$	37		$	42			(3	)			(8	)
	Land loans			36			37			36			(1	)			-
	Lot loans			151			159			173			(8	)			(22	)
		Total		221			233			251			(12	)			(30	)
House loans
	Spec			19			19			34			-				(15	)
	Sold			62			66			47			(4	)			15
		Total		81			85			81			(4	)			-
Total residential construction			$	302		$	318		$	332			(16	)			(30	)
(1) Excludes total loans of $3.1 million, $19.3 million, $20.3 million, $23.3 million and $25.7 million as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 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)
				Second Quarter 2014
				Non-performing				Foreclosed				Total
(in thousands)				Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE				$	2,975			$	653			$	3,628
Income producing CRE					1,032				242				1,274
Commercial & industrial					1,102				-				1,102
Commercial construction					95				-				95
	Total commercial				5,204				895				6,099
Residential mortgage					10,201				1,426				11,627
Home equity lines of credit					510				128				638
Residential construction					4,248				520				4,768
Consumer installment					561				-				561
	Total NPAs			$	20,724			$	2,969			$	23,693
	Balance as a % of
		Unpaid Principal			66.5	%			50.4	%			63.9	%
NONPERFORMING ASSETS BY MARKET
North Georgia				$	8,216			$	1,392			$	9,608
Atlanta MSA					3,883				510				4,393
North Carolina					5,314				615				5,929
Coastal Georgia					782				80				862
Gainesville MSA					921				49				970
East Tennessee					1,218				323				1,541
South Carolina / Corporate					-				-				-
Other (3)					390				-				390
	Total NPAs			$	20,724			$	2,969			$	23,693
NONPERFORMING ASSETS ACTIVITY
Beginning Balance				$	25,250			$	5,594			$	30,844
Loans placed on non-accrual					9,529				-				9,529
Payments received					(4,027	)			-				(4,027	)
Loan charge-offs					(8,341	)			-				(8,341	)
Foreclosures					(1,687	)			1,687				-
Capitalized costs					-				-				-
Property sales					-				(4,430	)			(4,430	)
Write downs					-				(305	)			(305	)
Net gains (losses) on sales					-				423				423
	Ending Balance			$	20,724			$	2,969			$	23,693
(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
				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				Total
(in thousands)				Loans				Properties				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				$	26,088			$	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)
			Second Quarter 2014							First Quarter 2014						Fourth Quarter 2013
							Net Charge-						Net Charge-							Net Charge-
							Offs to						Offs to							Offs to
			Net				Average			Net			Average			Net				Average
(in thousands)			Charge-Offs				Loans (2)			Charge-Offs			Loans (2)			Charge-Offs				Loans (2)
NET CHARGE-OFFS BY CATEGORY
Owner occupied CRE			$	(1,836	)		(.64	)%		$	278		.10	%		$	1,638			.57	%
Income producing CRE				435			.29				205		.13				320			.21
Commercial & industrial				662			.52				421		.35				(149	)		(.13	)
Commercial construction				131			.34				-		-				(9	)		(.02	)
	Total commercial			(608	)		(.10	)			904		.15				1,800			.30
Residential mortgage				2,509			1.17				1,515		.71				1,426			.64
Home equity lines of credit				466			.42				993		.90				417			.38
Residential construction				1,671			2.13				212		.27				327			.40
Consumer installment				137			.18				415		.54				475			.62
	Total		$	4,175			.38			$	4,039		.38			$	4,445			.41
NET CHARGE-OFFS BY MARKET
North Georgia			$	(741	)		(.25	)%		$	1,272		.42	%		$	1,603			.51	%
Atlanta MSA				1,481			.46				1,232		.39				636			.20
North Carolina				2,161			1.55				577		.41				1,104			.76
Coastal Georgia				116			.11				512		.49				345			.33
Gainesville MSA				797			1.23				141		.22				346			.54
East Tennessee				288			.42				239		.35				323			.46
South Carolina / Corporate				-			-				-		-				-			-
Other (3)				73			.14				66		.14				88			.20
	Total		$	4,175			.38			$	4,039		.38			$	4,445			.41
(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								Six Months Ended
				June 30,								June 30,
(in thousands, except per share data)				2014				2013				2014				2013
Interest revenue:
	Loans, including fees			$	48,261			$	50,730			$	95,949			$	101,665
	Investment securities, including tax exempt of $193, $210, $381 and $422				12,165				10,074				23,772				20,018
	Deposits in banks and short-term investments				980				916				1,823				1,786
		Total interest revenue			61,406				61,720				121,544				123,469
Interest expense:
	Deposits:
	NOW				411				419				851				873
	Money market				757				534				1,320				1,096
	Savings				21				36				41				72
	Time				2,018				2,950				3,789				6,241
		Total deposit interest expense			3,207				3,939				6,001				8,282
	Short-term borrowings				908				522				1,748				1,038
	Federal Home Loan Bank advances				80				30				138				49
	Long-term debt				2,638				2,666				5,272				5,328
		Total interest expense			6,833				7,157				13,159				14,697
		Net interest revenue			54,573				54,563				108,385				108,772
	Provision for credit losses				2,200				48,500				4,700				59,500
		Net interest revenue after provision for credit losses			52,373				6,063				103,685				49,272
Fee revenue:
	Service charges and fees				8,527				7,972				16,425				15,375
	Mortgage loan and other related fees				1,877				3,003				3,231				5,658
	Brokerage fees				1,245				1,063				2,422				1,830
	Securities gains, net				4,435				-				4,652				116
	Loss from prepayment of debt				(4,446	)			-				(4,446	)			-
	Other				2,505				3,905				4,035				5,875
		Total fee revenue			14,143				15,943				26,319				28,854
		Total revenue			66,516				22,006				130,004				78,126
Operating expenses:
	Salaries and employee benefits				24,287				24,734				48,683				48,326
	Communications and equipment				3,037				3,468				6,276				6,514
	Occupancy				3,262				3,449				6,640				6,816
	Advertising and public relations				1,139				1,037				1,765				1,975
	Postage, printing and supplies				804				894				1,580				1,757
	Professional fees				2,172				2,499				3,599				4,865
	Foreclosed property				102				5,151				218				7,484
	FDIC assessments and other regulatory charges				1,425				2,505				2,778				5,010
	Amortization of intangibles				361				491				748				1,196
	Other				3,943				4,595				7,295				8,650
		Total operating expenses			40,532				48,823				79,582				92,593
		Net income (loss) before income taxes			25,984				(26,817	)			50,422				(14,467	)
	Income tax expense (benefit)				9,627				(256,781	)			18,665				(256,196	)
		Net income			16,357				229,964				31,757				241,729
	Preferred stock dividends and discount accretion				-				3,055				439				6,107
		Net income available to common shareholders		$	16,357			$	226,909			$	31,318			$	235,622
Earnings per common share:
	Basic			$	.27			$	3.90			$	.52			$	4.05
	Diluted				.27				3.90				.52				4.05
Weighted average common shares outstanding:
	Basic				60,712				58,141				60,386				58,111
	Diluted				60,714				58,141				60,388				58,111

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
					June 30,				December 31,				June 30,
(in thousands, except share and per share data)					2014				2013				2013
ASSETS
	Cash and due from banks				$	91,791			$	71,230			$	62,564
	Interest-bearing deposits in banks					100,270				119,669				141,016
	Short-term investments					47,999				37,999				57,000
		Cash and cash equivalents				240,060				228,898				260,580
	Securities available for sale					1,741,268				1,832,217				1,937,264
	Securities held to maturity (fair value $458,864, $485,585 and $226,695)					448,752				479,742				214,947
	Mortgage loans held for sale					14,918				10,319				19,150
	Loans, net of unearned income					4,410,285				4,329,266				4,189,368
		Less allowance for loan losses				(73,248	)			(76,762	)			(81,845	)
			Loans, net			4,337,037				4,252,504				4,107,523
	Assets covered by loss sharing agreements with the FDIC					3,595				22,882				35,675
	Premises and equipment, net					161,614				163,589				167,197
	Bank owned life insurance					80,922				80,670				82,276
	Accrued interest receivable					19,141				19,598				19,279
	Intangible assets					2,731				3,480				4,315
	Foreclosed property					2,969				4,221				3,936
	Net deferred tax asset					233,149				258,518				272,287
	Derivative financial instruments					22,024				23,833				9,017
	Other assets					43,886				44,948				29,189
		Total assets			$	7,352,066			$	7,425,419			$	7,162,635
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
	Deposits:
		Demand			$	1,519,635			$	1,388,512			$	1,349,804
		NOW				1,334,883				1,427,939				1,225,664
		Money market				1,245,912				1,227,575				1,167,889
		Savings				279,203				251,125				247,821
		Time:
			Less than $100,000			805,289				892,961				982,009
			Greater than $100,000			554,310				588,689				664,112
		Brokered				424,313				424,704				374,530
			Total deposits			6,163,545				6,201,505				6,011,829
	Short-term borrowings					76,256				53,241				54,163
	Federal Home Loan Bank advances					175,125				120,125				70,125
	Long-term debt					129,865				129,865				124,845
	Derivative financial instruments					36,545				46,232				29,330
	Unsettled securities purchases					7,264				29,562				1,582
	Accrued expenses and other liabilities					41,497				49,174				41,458
		Total liabilities				6,630,097				6,629,704				6,333,332
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				179,323
		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;
		50,058,295, 46,243,345 and 43,356,492 shares issued and outstanding				50,058				46,243				43,356
	Common stock, non-voting, $1 par value; 26,000,000 shares authorized;
		10,080,787, 13,188,206 and 14,474,810 shares issued and outstanding				10,081				13,188				14,475
	Common stock issuable; 314,039, 241,832 and 271,215 shares					4,649				3,930				4,705
	Capital surplus					1,091,780				1,078,676				1,057,931
	Accumulated deficit					(418,583	)			(448,091	)			(473,531	)
	Accumulated other comprehensive loss					(16,016	)			(19,844	)			(13,786	)
		Total shareholders' equity				721,969				795,715				829,303
		Total liabilities and shareholders' equity			$	7,352,066			$	7,425,419			$	7,162,635

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended June 30,
			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)		$	4,376,174			$	48,435		4.44	%		$	4,253,361			$	50,808		4.79	%
	Taxable securities (3)			2,306,457				11,972		2.08				2,139,221				9,864		1.84
	Tax-exempt securities (1)(3)			19,592				316		6.45				21,597				344		6.37
	Federal funds sold and other interest-earning assets			158,418				1,060		2.68				193,370				1,072		2.22
		Total interest-earning assets		6,860,641				61,783		3.61				6,607,549				62,088		3.77
Non-interest-earning assets:
	Allowance for loan losses			(76,843	)									(106,417	)
	Cash and due from banks			63,853										63,457
	Premises and equipment			161,443										168,272
	Other assets (3)			408,768										181,987
		Total assets	$	7,417,862									$	6,914,848
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
	NOW		$	1,356,141				411		.12			$	1,245,301				419		.13
	Money market			1,361,045				757		.22				1,306,522				534		.16
	Savings			275,540				21		.03				245,211				36		.06
	Time less than $100,000			818,048				933		.46				1,000,511				1,568		.63
	Time greater than $100,000			563,489				865		.62				674,200				1,380		.82
	Brokered time deposits			334,919				220		.26				195,182				2		.00
		Total interest-bearing deposits		4,709,182				3,207		.27				4,666,927				3,939		.34
Federal funds purchased and other borrowings				108,311				908		3.36				72,139				522		2.90
Federal Home Loan Bank advances				154,795				80		.21				58,916				30		.20
Long-term debt				129,865				2,638		8.15				124,838				2,666		8.57
		Total borrowed funds		392,971				3,626		3.70				255,893				3,218		5.04
		Total interest-bearing liabilities		5,102,153				6,833		.54				4,922,820				7,157		.58
Non-interest-bearing liabilities:
	Non-interest-bearing deposits			1,477,849										1,315,812
	Other liabilities			125,173										40,603
		Total liabilities		6,705,175										6,279,235
	Shareholders' equity			712,687										635,613
		Total liabilities and shareholders' equity	$	7,417,862									$	6,914,848
Net interest revenue							$	54,950									$	54,931
Net interest-rate spread										3.07	%									3.19	%
Net interest margin (4)										3.21	%									3.33	%

(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 gains of $1.86 million in 2014 and pretax unrealized gains of $17.7 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.

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Six Months Ended June 30,
			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)		$	4,365,930			$	96,303		4.45	%		$	4,225,215			$	101,808		4.86	%
	Taxable securities (3)			2,303,404				23,391		2.03				2,129,208				19,596		1.84
	Tax-exempt securities (1)(3)			19,881				624		6.28				21,665				691		6.38
	Federal funds sold and other interest-earning assets			154,651				1,960		2.53				201,478				2,107		2.09
		Total interest-earning assets		6,843,866				122,278		3.60				6,577,566				124,202		3.80
Non-interest-earning assets:
	Allowance for loan losses			(77,165	)									(108,667	)
	Cash and due from banks			62,958										63,873
	Premises and equipment			162,112										168,773
	Other assets (3)			409,466										173,168
		Total assets	$	7,401,237									$	6,874,713
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
	NOW		$	1,385,964				851		.12			$	1,274,144				873		.14
	Money market			1,368,975				1,320		.19				1,282,101				1,096		.17
	Savings			267,588				41		.03				239,691				72		.06
	Time less than $100,000			847,707				1,946		.46				1,020,000				3,317		.66
	Time greater than $100,000			570,799				1,783		.63				684,320				2,857		.84
	Brokered time deposits			311,579				60		.04				185,210				67		.07
		Total interest-bearing deposits		4,752,612				6,001		.25				4,685,466				8,282		.36
	Federal funds purchased and other borrowings			110,436				1,748		3.19				72,148				1,038		2.90
	Federal Home Loan Bank advances			140,014				138		.20				46,064				49		.21
	Long-term debt			129,865				5,272		8.19				124,827				5,328		8.61
		Total borrowed funds		380,315				7,158		3.80				243,039				6,415		5.32
		Total interest-bearing liabilities		5,132,927				13,159		.52				4,928,505				14,697		.60
Non-interest-bearing liabilities:
	Non-interest-bearing deposits			1,439,447										1,278,875
	Other liabilities			120,943										55,639
		Total liabilities		6,693,317										6,263,019
Shareholders' equity				707,920										611,694
		Total liabilities and shareholders' equity	$	7,401,237									$	6,874,713
Net interest revenue							$	109,119									$	109,505
Net interest-rate spread										3.08	%									3.20	%
Net interest margin (4)										3.21	%									3.35	%

(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 $1.37 million in 2014 and pretax unrealized gains of $17.4 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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