Press Release Details

BLAIRSVILLE, GA -- (Marketwired) -- 10/23/14 -- United Community Banks, Inc. (NASDAQ: UCBI)

• Earnings are 29 cents per diluted share, up 7 percent from second quarter and 38 percent from a year ago
• Loans up $159 million, or 14 percent annualized
• Net interest margin increases 11 basis points from second quarter
• Core transaction deposits up $90 million, or 10 percent annualized

United Community Banks, Inc. (NASDAQ: UCBI) ("United") today reported net income of $17.6 million, or 29 cents per diluted share, for the third quarter of 2014. Earnings per share were up 7 percent from the second quarter, reflecting strong loan growth, a widening net interest margin, and growth in fee revenue. For the first nine months of 2014, United reported net income of $49.4 million, or 81 cents per diluted share.

"By all measures, we had an exceptional third quarter," said Jimmy Tallent, president and chief executive officer. "Strong loan growth and an expanding net interest margin increased net interest revenue by $2 million over the second quarter. Our return on assets rose to 95 basis points, seven basis points higher than the second quarter, and close to our goal of 1 percent. Also, our return on equity was 9.4 percent, up 200 basis points from a year ago.

"Third quarter net loan growth of $159 million was driven by strong production across all of our markets," stated Tallent. "Our strongest area, specialized lending, increased $132 million. This category includes health care, corporate, SBA, asset-based and commercial real estate lending. We also saw solid growth in our Coastal Georgia and Tennessee markets."

Third quarter taxable equivalent net interest revenue totaled $57.0 million, up $2.0 million from the second quarter and up $2.7 million from the third quarter of 2013. The taxable equivalent net interest margin was 3.32 percent, up 11 basis points from the second quarter and six basis points from a year ago.

"Preserving our net interest margin and growing net interest revenue, while minimizing exposure to changes in interest rates, have been top priorities for growing earnings per share," said Tallent. "Our third quarter results confirm that we are on the right path. We remain sharply focused on growing loans and core deposits to increase net interest revenue, while expanding products to grow fee revenue. Second quarter balance sheet management activities, which included restructuring the securities portfolio, interest rate hedges and wholesale borrowings, contributed to the widening net interest margin and growth in net interest revenue. We expect our margin to stabilize at the current level into the fourth quarter and 2015. We are seeing the results of these efforts positively impact our earnings growth."

The third quarter provision for credit losses was $2.0 million, down $200,000 from the second quarter and down $1.0 million from the third quarter of 2013. Third quarter net charge-offs were $3.16 million, compared with $4.18 million in the second quarter and $4.47 million a year ago. Nonperforming assets at quarter-end were $21.9 million, down 8 percent from the second quarter and 28 percent from a year ago. Nonperforming assets at quarter-end represented .29 percent of total assets, compared to .32 percent last quarter and .42 percent a year ago.

Third quarter fee revenue totaled $14.4 million, up $269,000 from the second quarter and $187,000 from the third quarter of 2013. Most of the increase from both prior periods resulted from our growing SBA lending business and related gains on the sales of SBA loans. In the third quarter of 2014, we generated gains on these sales of $945,000 compared with $744,000 in the second quarter. There were no gains from the sale of SBA loans in the third quarter of 2013.

Service charges and fees dipped slightly from both the second quarter and a year ago, mostly due to lower debit card interchange fees. Overdraft fees were also down from the third quarter of 2013. Mortgage fees were up $301,000 from the second quarter, but down $376,000 from a year ago, the decrease reflecting slower mortgage refinancing activity. Closed mortgage loans totaled $84.2 million in the third quarter compared with $68.5 million in the second quarter and $76.6 million in the third quarter of 2013.

Operating expenses were $41.4 million in the third quarter compared to $40.5 million in the second quarter and $40.1 million a year ago. The increase from both prior periods is mostly due to higher staff and incentive costs. Third quarter compensation expense reflects the full cost of additional personnel added through the acquisition of Business Carolina, Inc., which occurred late in the second quarter, as well as staff added for our new vertical SBA business. Occupancy expense was up from the second quarter and a year ago due to higher utilities and maintenance charges, including lease costs for new locations.

Offsetting these increases was a reduction in the deposit insurance assessment rate due to improvement in our credit measures. Additionally, advertising costs were down $245,000 due to one-time branding costs in the second quarter, and other expenses decreased $537,000 primarily due to $486,000 in branch closure and loss share asset costs that were written off last quarter.

"Our operating efficiency ratio improved to 57.96 percent in the third quarter, compared to 58.65 percent in the second quarter," Tallent said. "We continue to focus on growing revenue while controlling costs."

On September 30, 2014, capital ratios were as follows: Tier 1 Risk-Based of 12.1 percent; Total Risk-Based of 13.3 percent; Tier 1 Common Risk-Based of 11.0 percent; and Tier 1 Leverage of 8.7 percent.

"We are beginning to see meaningful improvement in our financial results, reflecting the successes of our strategic growth initiatives," Tallent said. "Our focus on expanding the net interest margin and growing loans, deposits and fee revenue is driving earnings growth. In the third quarter, we saw a return of strong loan growth and meaningful margin expansion despite the ongoing challenging economic environment. Strategic investments in people and new businesses are driving our growth. We will continue investing in our future by hiring top talent to grow our business. As our third quarter results demonstrate, we are on the right track."

Conference Call
United will hold a conference call today, Thursday, October 23, 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 16941301. 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 $7.5 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
																								Third
				2014												2013								Quarter
(in thousands, except per share  data; taxable equivalent)				Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter				2014-2013 Change
INCOME SUMMARY
Interest revenue				$	63,338			$	61,783			$	60,495			$	61,695			$	61,426
Interest expense					6,371				6,833				6,326				5,816				7,169
	Net interest revenue				56,967				54,950				54,169				55,879				54,257			5	%
Provision for credit losses					2,000				2,200				2,500				3,000				3,000
Fee revenue					14,412				14,143				12,176				13,519				14,225			1
	Total revenue				69,379				66,893				63,845				66,398				65,482
Operating expenses					41,364				40,532				39,050				41,614				40,097			3
	Income before income taxes				28,015				26,361				24,795				24,784				25,385			10
Income tax expense (benefit)					10,399				10,004				9,395				8,873				9,885
	Net income				17,616				16,357				15,400				15,911				15,500			14
Preferred dividends and discount accretion					-				-				439				2,912				3,059
Net income available to common shareholders				$	17,616			$	16,357			$	14,961			$	12,999			$	12,441			42
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	.29			$	.27			$	.25			$	.22			$	.21			38
		Book value			12.15				11.94				11.66				11.30				10.99			11
		Tangible book value (2)			12.10				11.91				11.63				11.26				10.95			11
	Key performance ratios:
		Return on common equity (1)(3)			9.41	%			8.99	%			8.64	%			7.52	%			7.38	%
		Return on assets (3)			.95				.88				.85				.86				.86
		Net interest margin (3)			3.32				3.21				3.21				3.26				3.26
		Efficiency ratio			57.96				58.65				59.05				60.02				58.55
		Equity to assets			9.85				9.61				9.52				11.62				11.80
		Tangible equity to assets (2)			9.83				9.58				9.50				11.59				11.76
		Tangible common equity to assets (2)			9.83				9.58				9.22				8.99				9.02
		Tangible common equity to risk-weighted assets (2)			14.10				13.92				13.63				13.18				13.34
ASSET QUALITY *
	Non-performing loans			$	18,745			$	20,724			$	25,250			$	26,819			$	26,088
	Foreclosed properties				3,146				2,969				5,594				4,221				4,467
		Total non-performing assets (NPAs)			21,891				23,693				30,844				31,040				30,555
	Allowance for loan losses				71,928				73,248				75,223				76,762				80,372
	Net charge-offs				3,155				4,175				4,039				4,445				4,473
	Allowance for loan losses to loans				1.57	%			1.66	%			1.73	%			1.77	%			1.88	%
	Net charge-offs to average loans (3)				.28				.38				.38				.41				.42
	NPAs to loans and foreclosed properties				.48				.54				.71				.72				.72
	NPAs to total assets				.29				.32				.42				.42				.42
AVERAGE BALANCES  ($ in millions)
	Loans			$	4,446			$	4,376			$	4,356			$	4,315			$	4,250			5
	Investment securities				2,231				2,326				2,320				2,280				2,178			2
	Earning assets				6,820				6,861				6,827				6,823				6,615			3
	Total assets				7,374				7,418				7,384				7,370				7,170			3
	Deposits				6,143				6,187				6,197				6,190				5,987			3
	Shareholders' equity				726				713				703				856				846			(14	)
	Common shares - basic (thousands)				60,776				60,712				60,059				59,923				59,100
	Common shares - diluted (thousands)				60,779				60,714				60,061				59,925				59,202
AT PERIOD END  ($ in millions)
	Loans *			$	4,569			$	4,410			$	4,356			$	4,329			$	4,267			7
	Investment securities				2,222				2,190				2,302				2,312				2,169			2
	Total assets				7,526				7,352				7,398				7,425				7,243			4
	Deposits				6,241				6,164				6,248				6,202				6,113			2
	Shareholders' equity				736				722				704				796				852			(14	)
	Common shares outstanding (thousands)				60,248				60,139				60,092				59,432				59,412

(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.

* Excludes loans and foreclosed properties covered by loss sharing agreements with the FDIC.

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Selected Financial Information
				For the Nine Months Ended September 30,								YTD 2014-2013
(in thousands, except per share data; taxable equivalent)				2014				2013				Change
INCOME SUMMARY
Interest revenue				$	185,616			$	185,628
Interest expense					19,530				21,866
		Net interest revenue			166,086				163,762			1	%
Provision for credit losses					6,700				62,500
Fee revenue					40,731				43,079			(5	)
		Total revenue			200,117				144,341
Operating expenses					120,946				132,690			(9	)
		Income before income taxes			79,171				11,651
Income tax expense (benefit)					29,798				(245,578	)
		Net income			49,373				257,229
Preferred dividends and discount accretion					439				9,166
Net income available to common shareholders				$	48,934			$	248,063
PERFORMANCE MEASURES
	Per common share:
		Diluted income		$	.81			$	4.24
		Book value			12.15				10.99			11
		Tangible book value (2)			12.10				10.95			11
	Key performance ratios:
		Return on common equity (1)(3)			9.02	%			64.29	%
		Return on assets (3)			.89				4.93
		Net interest margin (3)			3.25				3.32
		Efficiency ratio			58.54				64.19
		Equity to assets			9.66				9.91
		Tangible equity to assets (2)			9.64				9.85
		Tangible common equity to assets (2)			9.55				7.04
		Tangible common equity to risk-weighted assets (2)			14.10				13.34
ASSET QUALITY *
	Non-performing loans			$	18,745			$	26,088
	Foreclosed properties				3,146				4,467
		Total non-performing assets (NPAs)			21,891				30,555
	Allowance for loan losses				71,928				80,372
	Net charge-offs				11,369				89,265
	Allowance for loan losses to loans				1.57	%			1.88	%
	Net charge-offs to average loans (3)				.35				2.84
	NPAs to loans and foreclosed properties				.48				.72
	NPAs to total assets				.29				.42
AVERAGE BALANCES  ($ in millions)
	Loans			$	4,393			$	4,234			4
	Investment securities				2,292				2,160			6
	Earning assets				6,836				6,590			4
	Total assets				7,392				6,974			6
	Deposits				6,176				5,972			3
	Shareholders' equity				714				691			3
	Common shares - basic (thousands)				60,511				58,443
	Common shares - diluted (thousands)				60,513				58,444
AT PERIOD END  ($ in millions)
	Loans *			$	4,569			$	4,267			7
	Investment securities				2,222				2,169			2
	Total assets				7,526				7,243			4
	Deposits				6,241				6,113			2
	Shareholders' equity				736				852			(14	)
	Common shares outstanding (thousands)				60,248				59,412

(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.

* 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  data; taxable equivalent)			Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
Interest revenue reconciliation
Interest revenue - taxable equivalent			$	63,338			$	61,783			$	60,495			$	61,695			$	61,426
Taxable equivalent adjustment				(405	)			(377	)			(357	)			(380	)			(370	)
	Interest revenue (GAAP)		$	62,933			$	61,406			$	60,138			$	61,315			$	61,056
Net interest revenue reconciliation
Net interest revenue - taxable equivalent			$	56,967			$	54,950			$	54,169			$	55,879			$	54,257
Taxable equivalent adjustment				(405	)			(377	)			(357	)			(380	)			(370	)
	Net interest revenue (GAAP)		$	56,562			$	54,573			$	53,812			$	55,499			$	53,887
Total revenue reconciliation
Total operating revenue			$	69,379			$	66,893			$	63,845			$	66,398			$	65,482
Taxable equivalent adjustment				(405	)			(377	)			(357	)			(380	)			(370	)
	Total revenue (GAAP)		$	68,974			$	66,516			$	63,488			$	66,018			$	65,112
Income before taxes reconciliation
Income before taxes			$	28,015			$	26,361			$	24,795			$	24,784			$	25,385
Taxable equivalent adjustment				(405	)			(377	)			(357	)			(380	)			(370	)
	Income before taxes (GAAP)		$	27,610			$	25,984			$	24,438			$	24,404			$	25,015
Income tax expense (benefit) reconciliation
Income tax expense (benefit)			$	10,399			$	10,004			$	9,395			$	8,873			$	9,885
Taxable equivalent adjustment				(405	)			(377	)			(357	)			(380	)			(370	)
	Income tax expense (benefit) (GAAP)		$	9,994			$	9,627			$	9,038			$	8,493			$	9,515
Book value per common share reconciliation
Tangible book value per common share			$	12.10			$	11.91			$	11.63			$	11.26			$	10.95
Effect of goodwill and other intangibles				.05				.03				.03				.04				.04
	Book value per common share (GAAP)		$	12.15			$	11.94			$	11.66			$	11.30			$	10.99
Average equity to assets reconciliation
Tangible common equity to assets				9.83	%			9.58	%			9.22	%			8.99	%			9.02	%
Effect of preferred equity				-				-				.28				2.60				2.74
	Tangible equity to assets			9.83				9.58				9.50				11.59				11.76
Effect of goodwill and other intangibles				.02				.03				.02				.03				.04
	Equity to assets (GAAP)			9.85	%			9.61	%			9.52	%			11.62	%			11.80	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets				14.10	%			13.92	%			13.63	%			13.18	%			13.34	%
Effect of other comprehensive income				.34				.53				.36				.39				.49
Effect of deferred tax limitation				(3.39	)			(3.74	)			(3.92	)			(4.26	)			(4.72	)
Effect of trust preferred				1.02				1.04				1.03				1.04				1.09
Effect of preferred equity				-				-				-				2.39				4.01
	Tier I capital ratio (Regulatory)			12.07	%			11.75	%			11.10	%			12.74	%			14.21	%

UNITED COMMUNITY BANKS, INC.
Non-GAAP Performance Measures Reconciliation
Selected Financial Information
			For the Nine Months
			Ended September 30,
(in thousands, except per share data; taxable equivalent)			2014				2013
Interest revenue reconciliation
Interest revenue - taxable equivalent			$	185,616			$	185,628
Taxable equivalent adjustment				(1,139	)			(1,103	)
	Interest revenue (GAAP)		$	184,477			$	184,525
Net interest revenue reconciliation
Net interest revenue - taxable equivalent			$	166,086			$	163,762
Taxable equivalent adjustment				(1,139	)			(1,103	)
	Net interest revenue (GAAP)		$	164,947			$	162,659
Total revenue reconciliation
Total operating revenue			$	200,117			$	144,341
Taxable equivalent adjustment				(1,139	)			(1,103	)
	Total revenue (GAAP)		$	198,978			$	143,238
Income before taxes reconciliation
Income before taxes			$	79,171			$	11,651
Taxable equivalent adjustment				(1,139	)			(1,103	)
	Income before taxes (GAAP)		$	78,032			$	10,548
Income tax expense (benefit) reconciliation
Income tax expense (benefit)			$	29,798			$	(245,578	)
Taxable equivalent adjustment				(1,139	)			(1,103	)
	Income tax expense (benefit) (GAAP)		$	28,659			$	(246,681	)
Book value per common share reconciliation
Tangible book value per common share			$	12.10			$	10.95
Effect of goodwill and other intangibles				.05				.04
	Book value per common share (GAAP)		$	12.15			$	10.99
Average equity to assets reconciliation
Tangible common equity to assets				9.55	%			7.04	%
Effect of preferred equity				.09				2.81
	Tangible equity to assets			9.64				9.85
Effect of goodwill and other intangibles				.02				.06
	Equity to assets (GAAP)			9.66	%			9.91	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets				14.10	%			13.34	%
Effect of other comprehensive income				.34				.49
Effect of deferred tax limitation				(3.39	)			(4.72	)
Effect of trust preferred				1.02				1.09
Effect of preferred equity				-				4.01
	Tier I capital ratio (Regulatory)			12.07	%			14.21	%

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
				2014									2013
(in millions)				Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
LOANS BY CATEGORY
Owner occupied commercial RE				$	1,153		$	1,163		$	1,142		$	1,134		$	1,129
Income producing commercial RE					605			598			624			623			614
Commercial & industrial					650			554			495			472			457
Commercial construction					181			160			148			149			137
		Total commercial			2,589			2,475			2,409			2,378			2,337
Residential mortgage					866			861			866			875			888
Home equity lines of credit					459			451			447			441			421
Residential construction					307			302			318			328			318
Consumer installment					348			321			316			307			303
		Total loans		$	4,569		$	4,410		$	4,356		$	4,329		$	4,267
LOANS BY MARKET
North Georgia				$	1,168		$	1,175		$	1,205		$	1,240		$	1,262
Atlanta MSA					1,289			1,305			1,290			1,275			1,246
North Carolina					553			555			563			572			575
Coastal Georgia					444			426			425			423			421
Gainesville MSA					254			257			262			255			253
East Tennessee					281			270			272			280			277
South Carolina / Corporate					337			206			131			88			47
Other (2)					243			216			208			196			186
		Total loans		$	4,569		$	4,410		$	4,356		$	4,329		$	4,267
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development			$	36		$	34		$	37		$	39		$	40
	Land loans				35			36			37			38			35
	Lot loans				146			151			159			166			167
		Total			217			221			233			243			242
House loans
	Spec				18			19			19			23			30
	Sold				72			62			66			62			46
		Total			90			81			85			85			76
Total residential construction				$	307		$	302		$	318		$	328		$	318

(1) Excludes total loans of $2.8 million, $3.1 million, $19.3 million, $20.3 million and $23.3 million as of September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 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				Year over
				Third			Second			Third			Quarter				Year
(in millions)				Quarter			Quarter			Quarter			Change				Change
LOANS BY CATEGORY
Owner occupied commercial RE				$	1,153		$	1,163		$	1,129		$	(10	)		$	24
Income producing commercial RE					605			598			614			7				(9	)
Commercial & industrial					650			554			457			96				193
Commercial construction					181			160			137			21				44
		Total commercial			2,589			2,475			2,337			114				252
Residential mortgage					866			861			888			5				(22	)
Home equity lines of credit					459			451			421			8				38
Residential construction					307			302			318			5				(11	)
Consumer installment					348			321			303			27				45
		Total loans		$	4,569		$	4,410		$	4,267			159				302
LOANS BY MARKET
North Georgia				$	1,168		$	1,175		$	1,262			(7	)			(94	)
Atlanta MSA					1,289			1,305			1,246			(16	)			43
North Carolina					553			555			575			(2	)			(22	)
Coastal Georgia					444			426			421			18				23
Gainesville MSA					254			257			253			(3	)			1
East Tennessee					281			270			277			11				4
South Carolina / Corporate					337			206			47			131				290
Other (2)					243			216			186			27				57
		Total loans		$	4,569		$	4,410		$	4,267			159				302
RESIDENTIAL CONSTRUCTION
Dirt loans
	Acquisition & development			$	36		$	34		$	40			2				(4	)
	Land loans				35			36			35			(1	)			-
	Lot loans				146			151			167			(5	)			(21	)
		Total			217			221			242			(4	)			(25	)
House loans
	Spec				18			19			30			(1	)			(12	)
	Sold				72			62			46			10				26
		Total			90			81			76			9				14
Total residential construction				$	307		$	302		$	318			5				(11	)

(1) Excludes total loans of $2.8 million, $3.1 million, $19.3 million, $20.3 million and $23.3 million as of September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 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)
			Third Quarter 2014
(in thousands)			Non-performing Loans				Foreclosed Properties				Total NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE			$	2,156			$	1,024			$	3,180
Income producing CRE				1,742				42				1,784
Commercial & industrial				1,593				-				1,593
Commercial construction				148				-				148
	Total commercial			5,639				1,066				6,705
Residential mortgage				8,350				1,769				10,119
Home equity lines of credit				720				90				810
Residential construction				3,543				221				3,764
Consumer installment				493				-				493
	Total NPAs		$	18,745			$	3,146			$	21,891
	Balance as a % of  Unpaid Principal			68.6	%			54.5	%			66.1	%
NONPERFORMING ASSETS BY MARKET
North Georgia			$	7,392			$	1,717			$	9,109
Atlanta MSA				1,724				364				2,088
North Carolina				4,919				398				5,317
Coastal Georgia				781				160				941
Gainesville MSA				1,403				85				1,488
East Tennessee				1,227				245				1,472
South Carolina / Corporate				945				177				1,122
Other (3)				354				-				354
	Total NPAs		$	18,745			$	3,146			$	21,891
NONPERFORMING ASSETS ACTIVITY
Beginning Balance			$	20,724			$	2,969			$	23,693
Loans placed on non-accrual				7,665				-				7,665
Payments received				(3,129	)			-				(3,129	)
Loan charge-offs				(4,353	)			-				(4,353	)
Foreclosures				(2,162	)			2,162				-
Capitalized costs				-				209				209
Property sales				-				(2,350	)			(2,350	)
Write downs				-				(108	)			(108	)
Net gains (losses) on sales				-				264				264
	Ending Balance		$	18,745			$	3,146			$	21,891

(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
(in thousands)			Non-performing Loans				Foreclosed Properties				Total 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	%			.4	%			3.9	%
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
(in thousands)			Non-performing Loans				Foreclosed Properties				Total 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 U npaid 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)
			Third Quarter 2014							Second Quarter 2014							First Quarter 2014
(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			$	746			.26	%		$	(1,836	)		(.64)	%		$	278		.10	%
Income producing CRE				104			.07				435			.29				205		.13
Commercial & industrial				(341	)		(.23	)			662			.52				421		.35
Commercial construction				103			.24				131			.34				-		-
	Total commercial			612			.10				(608	)		(.10	)			904		.15
Residential mortgage				1,116			.52				2,509			1.17				1,515		.71
Home equity lines of credit				356			.31				466			.42				993		.90
Residential construction				712			.94				1,671			2.13				212		.27
Consumer installment				359			.43				137			.18				415		.54
	Total		$	3,155			.28			$	4,175			.38			$	4,039		.38
NET CHARGE-OFFS BY MARKET
North Georgia			$	1,861			.63	%		$	(741	)		(.25)	%		$	1,272		.42	%
Atlanta MSA				(250	)		(.08	)			1,481			.46				1,232		.39
North Carolina				656			.47				2,161			1.55				577		.41
Coastal Georgia				228			.21				116			.11				512		.49
Gainesville MSA				259			.40				797			1.23				141		.22
East Tennessee				230			.33				288			.42				239		.35
South Carolina / Corporate				5			.01				-			-				-		-
Other (3)				166			.31				73			.14				66		.14
	Total		$	3,155			.28			$	4,175			.38			$	4,039		.38

(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						Nine Months Ended
					September 30,						September 30,
(in thousands, except per share data)					2014			2013			2014				2013
Interest revenue:
	Loans, including fees				$	49,653		$	50,162		$	145,602			$	151,827
	Investment securities, including tax exempt of $177, $202, $558 and $624					12,346			9,887			36,118				29,905
	Deposits in banks and short-term investments					934			1,007			2,757				2,793
			Total interest revenue			62,933			61,056			184,477				184,525
Interest expense:
	Deposits:
		NOW				365			413			1,216				1,286
		Money market				872			545			2,192				1,641
		Savings				20			37			61				109
		Time				1,721			2,630			5,510				8,871
			Total deposit interest expense			2,978			3,625			8,979				11,907
	Short-term borrowings					316			525			2,064				1,563
	Federal Home Loan Bank advances					435			16			573				65
	Long-term debt					2,642			3,003			7,914				8,331
		Total interest expense				6,371			7,169			19,530				21,866
		Net interest revenue				56,562			53,887			164,947				162,659
	Provision for credit losses					2,000			3,000			6,700				62,500
		Net interest revenue after provision for credit losses				54,562			50,887			158,247				100,159
Fee revenue:
	Service charges and fees					8,202			8,456			24,627				23,831
	Mortgage loan and other related fees					2,178			2,554			5,409				8,212
	Brokerage fees					1,209			1,274			3,631				3,104
	Securities gains, net					11			-			4,663				116
	Loss from prepayment of debt					-			-			(4,446	)			-
	Other					2,812			1,941			6,847				7,816
		Total fee revenue				14,412			14,225			40,731				43,079
		Total revenue				68,974			65,112			198,978				143,238
Operating expenses:
	Salaries and employee benefits					25,666			23,090			74,349				71,416
	Communications and equipment					3,094			3,305			9,370				9,819
	Occupancy					3,425			3,379			10,065				10,195
	Advertising and public relations					894			962			2,659				2,937
	Postage, printing and supplies					876			644			2,456				2,401
	Professional fees					2,274			2,650			5,873				7,515
	Foreclosed property					285			194			503				7,678
	FDIC assessments and other regulatory charges					1,131			2,405			3,909				7,415
	Amortization of intangibles					313			427			1,061				1,623
	Other					3,406			3,041			10,701				11,691
		Total operating expenses				41,364			40,097			120,946				132,690
		Net income before income taxes				27,610			25,015			78,032				10,548
	Income tax expense (benefit)					9,994			9,515			28,659				(246,681	)
		Net income				17,616			15,500			49,373				257,229
	Preferred stock dividends and discount accretion					-			3,059			439				9,166
		Net income available to common shareholders			$	17,616		$	12,441		$	48,934			$	248,063
Earnings per common share:
	Basic				$	.29		$	.21		$	.81			$	4.24
	Diluted					.29			.21			.81				4.24
Weighted average common shares outstanding:
	Basic					60,776			59,100			60,511				58,443
	Diluted					60,779			59,202			60,513				58,444

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet (Unaudited)
(in thousands, except share and per share data)							September 30, 2014				December 31, 2013				September 30, 2013
ASSETS
	Cash and due from banks						$	75,268			$	71,230			$	70,986
	Interest-bearing deposits in banks							117,399				119,669				131,147
	Short-term investments							23,397				37,999				62,000
		Cash and cash equivalents						216,064				228,898				264,133
	Securities available for sale							1,789,667				1,832,217				1,963,424
	Securities held to maturity (fair value $440,311, $485,585 and $214,651)							432,418				479,742				205,613
	Mortgage loans held for sale							20,004				10,319				11,987
	Loans, net of unearned income							4,568,886				4,329,266				4,267,067
		Less allowance for loan losses						(71,928	)			(76,762	)			(80,372	)
			Loans, net					4,496,958				4,252,504				4,186,695
	Assets covered by loss sharing agreements with the FDIC							3,253				22,882				31,207
	Premises and equipment, net							160,454				163,589				165,993
	Bank owned life insurance							81,101				80,670				80,537
	Accrued interest receivable							19,908				19,598				18,199
	Goodwill and other intangible assets							3,910				3,480				3,888
	Foreclosed property							3,146				4,221				4,467
	Net deferred tax asset							224,734				258,518				269,784
	Derivative financial instruments							22,221				23,833				8,092
	Other assets							52,051				44,948				29,274
		Total assets					$	7,525,889			$	7,425,419			$	7,243,293
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
		Deposits:
			Demand				$	1,561,020			$	1,388,512			$	1,418,782
			NOW					1,399,449				1,427,939				1,279,134
			Money market					1,281,526				1,227,575				1,197,495
			Savings					287,797				251,125				249,044
			Time:
				Less than $100,000				774,201				892,961				925,089
				Greater than $100,000				531,428				588,689				624,019
		Brokered						405,308				424,704				419,344
					Total deposits			6,240,729				6,201,505				6,112,907
	Short-term borrowings							6,001				53,241				53,769
	Federal Home Loan Bank advances							330,125				120,125				125
	Long-term debt							129,865				129,865				129,865
	Derivative financial instruments							36,171				46,232				37,269
	Unsettled securities purchases							-				29,562				11,610
	Accrued expenses and other liabilities							46,573				49,174				45,531
		Total liabilities						6,789,464				6,629,704				6,391,076
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				179,714
		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; 50,167,191, 46,243,345 and 45,222,839 shares issued and outstanding							50,167				46,243				45,223
	Common stock, non-voting, $1 par value; 26,000,000 shares authorized; 10,080,787, 13,188,206 and 14,189,006 shares issued and outstanding							10,081				13,188				14,189
	Common stock issuable; 354,961, 241,832 and 242,262 shares							5,116				3,930				3,979
	Capital surplus							1,091,555				1,078,676				1,077,536
	Accumulated deficit							(402,773	)			(448,091	)			(461,090	)
	Accumulated other comprehensive loss							(17,721	)			(19,844	)			(24,164	)
		Total shareholders' equity						736,425				795,715				852,217
		Total liabilities and shareholders' equity					$	7,525,889			$	7,425,419			$	7,243,293

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 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)				$	4,445,947			$	49,853		4.45	%		$	4,249,892			$	50,265		4.69	%
	Taxable securities (3)					2,212,116				12,169		2.20				2,157,448				9,685		1.80
	Tax-exempt securities (1)(3)					18,794				290		6.17				20,913				331		6.32
	Federal funds sold and other interest-earning assets					143,169				1,026		2.87				186,544				1,145		2.46
		Total interest-earning assets				6,820,026				63,338		3.69				6,614,797				61,426		3.69
Non-interest-earning assets:
	Allowance for loan losses					(74,146	)									(83,408	)
	Cash and due from banks					71,224										63,890
	Premises and equipment					161,315										166,906
	Other assets (3)					395,184										407,912
		Total assets			$	7,373,603									$	7,170,097
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
		NOW			$	1,331,806				365		.11			$	1,222,334				413		.13
		Money market				1,387,042				872		.25				1,328,661				545		.16
		Savings				282,746				20		.03				248,937				37		.06
		Time less than $100,000				791,289				876		.44				952,320				1,369		.57
		Time greater than $100,000				542,216				827		.61				644,264				1,229		.76
		Brokered time deposits				278,330				18		.03				233,842				32		.05
			Total interest-bearing deposits			4,613,429				2,978		.26				4,630,358				3,625		.31
		Federal funds purchased and other borrowings				53,713				316		2.33				67,292				525		3.10
		Federal Home Loan Bank advances				227,190				435		.76				32,082				16		.20
		Long-term debt				129,865				2,642		8.07				144,601				3,003		8.24
			Total borrowed funds			410,768				3,393		3.28				243,975				3,544		5.76
			Total interest-bearing liabilities			5,024,197				6,371		.50				4,874,333				7,169		.58
Non-interest-bearing liabilities:
	Non-interest-bearing deposits					1,530,011										1,356,792
	Other liabilities					92,986										93,247
			Total liabilities			6,647,194										6,324,372
Shareholders' equity						726,409										845,725
			Total liabilities and shareholders' equity		$	7,373,603									$	7,170,097
Net interest revenue									$	56,967									$	54,257
Net interest-rate spread												3.19	%									3.11	%
Net interest margin (4)												3.32	%									3.26	%

(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 $7.42 million in 2014 and pretax unrealized losses of $10.6 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 Nine Months Ended September 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)				$	4,392,895			$	146,156		4.45	%		$	4,233,531			$	152,073		4.80	%
	Taxable securities (3)					2,272,639				35,560		2.09				2,138,725				29,281		1.83
	Tax-exempt securities (1)(3)					19,515				914		6.24				21,411				1,022		6.36
	Federal funds sold and other interest-earning assets					150,782				2,986		2.64				196,445				3,252		2.21
		Total interest-earning assets				6,835,831				185,616		3.63				6,590,112				185,628		3.76
Non-interest-earning assets:
	Allowance for loan losses					(76,148	)									(100,154	)
	Cash and due from banks					65,744										63,879
	Premises and equipment					161,843										168,144
	Other assets (3)					404,654										252,275
		Total assets			$	7,391,924									$	6,974,256
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
	Interest-bearing deposits:
		NOW			$	1,367,713				1,216		.12			$	1,256,684				1,286		.14
		Money market				1,375,064				2,192		.21				1,297,792				1,641		.17
		Savings				272,696				61		.03				242,807				109		.06
		Time less than $100,000				828,694				2,822		.46				997,193				4,686		.63
		Time greater than $100,000				561,167				2,610		.62				670,821				4,086		.81
		Brokered time deposits				300,374				78		.03				201,599				99		.07
			Total interest-bearing deposits			4,705,708				8,979		.26				4,666,896				11,907		.34
		Federal funds purchased and other borrowings				91,320				2,064		3.02				70,512				1,563		2.96
		Federal Home Loan Bank advances				169,392				573		.45				41,352				65		.21
		Long-term debt				129,865				7,914		8.15				131,491				8,331		8.47
			Total borrowed funds			390,577				10,551		3.61				243,355				9,959		5.47
			Total interest-bearing liabilities			5,096,285				19,530		.51				4,910,251				21,866		.60
Non-interest-bearing liabilities:
	Non-interest-bearing deposits					1,469,967										1,305,133
	Other liabilities					111,522										68,312
			Total liabilities			6,677,774										6,283,696
Shareholders' equity						714,150										690,560
			Total liabilities and shareholders' equity		$	7,391,924									$	6,974,256
Net interest revenue									$	166,086									$	163,762
Net interest-rate spread												3.12	%									3.16	%
Net interest margin (4)												3.25	%									3.32	%

(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 $1.59 million in 2014 and pretax unrealized gains of $7.96 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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