Press Release Details

BLAIRSVILLE, GA -- (Marketwire) -- 02/22/13 -- United Community Banks, Inc. ("United") (NASDAQ: UCBI) today reported that, subject to the completion of final documentation and any necessary court approvals, it has settled previously disclosed litigation with FILB Co-Investments LLC ("FILB-Co").

"As required under GAAP with the resolution of litigation after year-end but before financial statements are available for issuance, our previously reported 2012 fourth quarter and full year financial results have been updated to reflect a settlement of our litigation with FILB-Co," said Jimmy Tallent, president and chief executive officer. "While we strongly viewed the litigation as being without merit, the settlement will allow us to avoid a long and costly legal process."

United has updated its previously reported 2012 fourth quarter and full year financial results to establish litigation reserves for both the settlement and with respect to claims that may be made against United by Fletcher International Ltd. or one or more of its affiliates. The settlement with FILB-Co and the related reserves increased fourth quarter 2012 operating expenses by $4 million. Therefore, updated 2012 fourth quarter and full year earnings were reduced to $5.26 million and $33.9 million, respectively, or $.04 per share and $.38 per share. Previously reported 2012 fourth quarter and full-year earnings were $9.26 million and $37.9 million, respectively, or $.11 per share and $.44 per share, respectively.

"We are pleased that the FILB-Co litigation has been resolved and believe that we have established reserves to address the settlement and any other claims that may be asserted against United in the future by Fletcher," said Tallent.

The updated financial results will be reflected in United's Annual Report on Form 10-K, and are included in the financial highlights below.

Financial Highlights

Selected Financial Information

---------------------------------------------------------------------------

(in thousands, except       Three Months Ended        Twelve Months Ended

 per share                   December 31, 2012         December 31, 2012

 data; taxable           ------------------------  ------------------------

 equivalent)             As Reported   As Updated  As Reported   As Updated

------------------------------------  -----------  -----------  -----------

INCOME SUMMARY

Operating expenses       $    46,726  $    50,726  $   182,774  $   186,774

Income before income

 taxes                        10,063        6,063       40,596       36,596

Net income                     9,261        5,261       37,856       33,856

Net income available to

 common shareholders           6,216        2,216       25,708       21,708



PERFORMANCE MEASURES

    Per common share:

      Diluted income     $       .11  $       .04  $       .44  $       .38

      Book value                6.74         6.67         6.74         6.67

      Tangible book

       value (2)                6.64         6.57         6.64         6.57



    Key performance

     ratios:

      Return on equity

       (1)(3)                   6.03%        2.15%        6.43%        5.43%

      Return on assets

       (3)                       .54          .31          .55          .49

      Efficiency ratio         66.04        71.69        64.02        65.43

      Tangible common

       equity to risk-

       weighted assets

       (2)                      8.33         8.26         8.33         8.26



AT PERIOD END ($ in

 millions)

    Shareholders' equity $       585  $       581  $       585  $       581



(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







Consolidated Statement of Operations (Unaudited)

----------------------------------------------------------------------------

                                Three Months Ended     Twelve Months Ended

                                December 31, 2012       December 31, 2012

                             ----------------------- -----------------------

(in thousands, except per

 share data)                 As Reported  As Updated As Reported  As Updated

---------------------------------------- ----------------------- -----------



Other expenses               $     3,800 $     7,800 $    15,951 $    19,951

Total operating expenses          46,726      50,726     182,774     186,774

Net income before income

 taxes                             9,682       5,682      38,906      34,906

Net income                         9,261       5,261      37,856      33,856

Net income available to

 common shareholders               6,216       2,216      25,708      21,708



Earnings per common share -

 Basic                       $       .11 $       .04 $       .44 $       .38

Earnings per common share -

 Diluted                             .11         .04         .44         .38







Consolidated Balance Sheet

---------------------------------------------------------------------------

                                                As Reported     As Updated

(in thousands, except share and per share       December 31,   December 31,

 data)                                              2012           2011

---------------------------------------------------------------------------

                                                (unaudited)     (audited)

Accrued expenses and other liabilities         $      51,210  $      55,210

Total liabilities                                  6,216,854      6,220,854

Accumulated deficit                                 (705,153)      (709,153)

Total shareholders' equity                           585,405        581,405

United's regulatory capital ratios were slightly lower as a result of the change in shareholders' equity. As of December 31, 2012, the revised capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Tier 1 Leverage of 9.6 percent; Total Risk-Based of 15.7 percent; Tier 1 Common Risk-Based of 8.8 percent; and, Tangible Equity-to-Assets of 8.6 percent.

About United Community Banks, Inc.
Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $6.8 billion and operates 103 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and northwest South Carolina. United specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through a network of ATMs, telephone and on-line banking. United's common stock is listed on the Nasdaq Global Select Market under the symbol UCBI. Additional information may be found at United's website at www.ucbi.com.

Safe Harbor
This news release contains forward-looking statements, as defined by federal securities laws, including statements about United's potential settlement of pending and potential litigation, 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 2011 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.

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Email Contact

Source: United Community Banks, Inc.

News Provided by Acquire Media