UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
October 24, 2013

 

United Community Banks, Inc.
(Exact name of registrant as specified in its charter)

 

Georgia	No. 001-35095	No. 58-180-7304
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

 

125 Highway 515 East
Blairsville, Georgia 30512
(Address of principal executive offices)

Registrant's telephone number, including area code:
(706) 781-2265

 

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

q

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

q

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

q

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

q

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

 

 

  

Item 2.02	Results of Operations and Financial Condition.
	On October 24, 2013, United Community Banks, Inc. (the “Registrant”) issued a news release announcing its financial results for the quarter ended September 30, 2013 (the “News Release”). The News Release, including financial schedules, is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. In connection with issuing the News Release, on October 24, 2013 at 11:00 a.m. EDT, the Registrant intends to hold a conference call/webcast to discuss the News Release. In addition to the News Release, during the conference call the Registrant intends to discuss certain financial information contained in the Third Quarter 2013 Investor Presentation (the “Investor Presentation”), which will be posted to the Registrant’s website at www.ucbi.com. The Investor Presentation is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.   The presentation of the Registrant’s financial results includes core earnings measures, which are measures of performance determined by methods other than in accordance with generally accepted accounting principles, or GAAP. Management included non-GAAP core earnings measures because it believes they are useful for evaluating the Registrant’s operations and performance over periods of time, and uses core earnings measures in managing and evaluating the Registrant’s business and intends to refer to them in discussions about the Registrant’s operations and performance. Core earnings measures exclude credit related costs such as the provision for loan losses and foreclosed property expense, securities gains and losses, income taxes and other items of a non-recurring nature. Core earnings measures are useful in evaluating the underlying earnings performance trends of the Registrant. Management believes these non-GAAP performance measures may provide users of the Registrant’s financial information with a meaningful measure for assessing the Registrant’s financial results and comparing those financial results to prior periods.   Core earnings measures should be viewed in addition to, and not as an alternative to or substitute for, the Registrant’s performance measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies.

 

 

Item 9.01		Financial Statements and Exhibits.
(d)		Exhibits
Exhibit No.___		Description
99.1   99.2		News Release, dated October 24, 2013   Investor Presentation, Third Quarter 2013

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	UNITED COMMUNITY BANKS, INC.
	By:	/s/ Rex S. Schuette
		Rex S. Schuette Executive Vice President and
		Chief Financial Officer

 

Date: October 24, 2013

 

 Exhibit 99.1

 

 

 

 

 

For Immediate Release

 

For more information:

Rex S. Schuette

Chief Financial Officer

(706) 781-2266

Rex_Schuette@ucbi.com

 

 

UNITED COMMUNITY BANKS, INC. REPORTS

EARNINGS OF $15.5 MILLION FOR THIRD QUARTER 2013

 

• Net income of $15.5 million, or 21 cents per share
• Operating efficiency ratio improves to 58.6 percent reflecting lower expenses
• Loans up $78 million, or 7 percent annualized
• Core transaction deposits up $94 million, or 11 percent annualized
• All capital ratios strengthened

  

BLAIRSVILLE, GA – October 24, 2013 – United Community Banks, Inc. (NASDAQ: UCBI) today reported it continued to achieve substantial momentum in positioning itself to build the long-term value of its franchise. For the third quarter and nine months ended September 30, 2013 net income was $15.5 million, or 21 cents per share, and $257.2 million, or $4.24 per share, respectively. The year-to-date results include the impact of two significant events during the second quarter – the reversal of the valuation allowance on United’s net deferred tax asset and the higher provision for loan losses and foreclosed property costs from the accelerated sales of classified assets.

 

“I am very pleased with the important progress we are making in growing our business and improving operating efficiency,” said Jimmy Tallent, president and chief executive officer. “We achieved good loan and deposit growth while at the same time lowering operating expenses. This is particularly demonstrated by the improvement in our efficiency ratio to 58.6 percent, the lowest level since 2007. This is a tribute to the great effort of our dedicated team of bankers.”

 

  

The third quarter provision for loan losses was $3.0 million compared with $48.5 million in the second quarter and $15.5 million in the third quarter of 2012. The second quarter provision was elevated by higher charge-offs associated with the accelerated classified loan sales. The resulting reduction in classified loans led to lower net charge-offs in the third quarter and a lower provision. Third quarter net charge-offs were $4.47 million compared with $72.4 million in the second quarter and $20.6 million a year ago.

 

Nonperforming assets at quarter-end were $30.6 million, representing .42 percent of total assets, down from $31.8 million or .44 percent of assets at June 30, 2013, and from $142 million or 2.12 percent of assets a year ago. The classified asset ratio, which is the ratio of classified assets to Tier 1 regulatory capital plus the allowance for loan losses, declined to 26 percent from 27 percent at the end of second quarter and 55 percent a year ago.

 

Third quarter taxable equivalent net interest revenue totaled $54.3 million, down $224,000 from the second quarter and down $3.03 million from the third quarter of 2012. “The decrease generally reflects the ongoing lower yields on our loan and investment securities portfolios,” said Tallent. “The lower loan portfolio yield reflects competitive pricing pressure on new and renewed commercial loans and on new retail loan offerings with low introductory rates. Introductory rates on $45 million of these retail loans rolled over to a market rate of prime-plus in the third quarter with another $40 million due to reset to market rates in the fourth quarter. The lower investment securities yield compared to a year ago is due to reinvestment of cash flows at record low rates. We continue to look for reinvestment opportunities to alleviate market and duration risk. Our focus has been on floating-rate securities, which at quarter-end accounted for 39 percent of the total investment securities portfolio, up one percent from last quarter.”

 

The third quarter taxable equivalent net interest margin was 3.26 percent, down five basis points from the second quarter and 34 basis points from a year ago. “Our margin continues to reflect the unprecedented low interest rate environment,” stated Tallent. “We could see further compression in the near term, though we believe at a slower pace. To offset the impact of a lower margin on net interest revenue, we are concentrating on growing the loan portfolio in the mid-single digit range by focusing on retail loans and continuing to add commercial lenders in key markets.”

 

 

“Third quarter fee revenue of $14.1 million was down slightly compared to second quarter and up approximately $1.0 million from a year ago when certain non-core items are excluded,” commented Tallent. Second quarter fee revenue of $16.3 million was elevated due to non-core items, which included a $1.37 million recovery on a bank-owned life insurance policy, a $468,000 gain from the sale of low-income housing tax credits, and $369,000 in hedge ineffectiveness gains. Similarly, year ago fee revenue of $13.8 million included hedge ineffectiveness gains of $608,000.

 

Service charges and fees on deposit accounts were up $484,000 from the second quarter and up $760,000 from a year ago reflecting strong growth in debit card interchange fees. Brokerage fees were up $211,000 from the second quarter and up $565,000 from a year ago, which shows a renewed focus on this line of business. Mortgage fees were down $449,000 from the second quarter and down $246,000 from a year ago reflecting slower mortgage refinancing activity resulting from rising long-term interest rates. Closed mortgage loans totaled $76.6 million in the third quarter compared with $95.2 million in the second quarter and $107.9 million in the third quarter of 2012.

 

Operating expenses, excluding foreclosed property costs, were $39.9 million for the third quarter compared to $43.7 million in the second quarter of 2013 and $41.1 million a year ago. The decrease from both periods reflects a reduction in loan workouts and collections costs as well as lower severance costs. Third quarter severance costs were $405,000 compared with $1.56 million and $401,000 for the second quarter of 2013 and the third quarter of 2012, respectively.

 

  

Foreclosed property costs were $194,000 in the third quarter compared to $5.15 million in the second quarter and $3.71 million a year ago. The higher second quarter costs reflect $4.31 million in net losses and write-downs related to the accelerated foreclosed property sales and $837,000 for maintenance. The third quarter 2012 foreclosed property costs included $2.74 million in net losses and write-downs and $962,000 for maintenance.

 

“The effective tax rate for the third quarter was elevated from 35 percent to 38 percent by a $.6 million net charge to tax expense,” stated Tallent. “The net charge reflects a state income tax rate reduction in North Carolina that lowered the rate at which a portion of our net deferred tax asset will be recovered. The resulting charge was partially offset by the release of tax reserves for tax returns that had expired.”

 

As of September 30, 2013, capital ratios were as follows: Tier 1 Risk-Based of 14.2 percent; Total Risk-Based of 15.5 percent; Tier 1 Common Risk-Based of 9.1 percent; and Tangible Equity-to-Assets of 9.0 percent. The Tier 1 Leverage ratio was 10.0 percent.

 

Tallent concluded, “Going forward, we are focused strategically on loan and fee-based service growth in existing and newer markets to provide United with further momentum in building its value to our shareholders. We are looking ahead with confidence driven by our progress, our business opportunities and the best customer satisfaction in our industry.”

 

Conference Call

United will hold a conference call today, Thursday, October 24, 2013, 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 76304427. 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.

Headquartered in Blairsville, United Community Banks, Inc. is the third-largest bank holding company in Georgia. United has assets of $7.2 billion and operates 103 banking offices throughout north Georgia, the Atlanta region, coastal Georgia, western North Carolina, east Tennessee and western 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 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 2012 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2013 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
		2013												2012								Third Quarter				For the Nine Months Ended								YTD
(in thousands, except per share		Third				Second				First				Fourth				Third				2013-2012				September 30,								2013-2012
data; taxable equivalent)		Quarter				Quarter				Quarter				Quarter				Quarter				Change				2013				2012				Change
INCOME SUMMARY
Interest revenue		$	61,363			$	61,693			$	62,134			$	64,450			$	65,978							$	185,190			$	202,979
Interest expense			7,025				7,131				7,475				8,422				8,607								21,631				29,908
Net interest revenue			54,338				54,562				54,659				56,028				57,371				(5	)%			163,559				173,071				(5	)%
Provision for loan losses			3,000				48,500				11,000				14,000				15,500								62,500				48,500
Fee revenue			14,144				16,312				12,826				14,761				13,764				3				43,282				42,010				3
Total revenue			65,482				22,374				56,485				56,789				55,635								144,341				166,581
Operating expenses			40,097				48,823				43,770				50,726				44,783				(10	)			132,690				136,048				(2	)
Income (loss) before income taxes			25,385				(26,449	)			12,715				6,063				10,852				134				11,651				30,533				(62	)
Income tax expense (benefit)			9,885				(256,413	)			950				802				284								(245,578	)			1,938
Net income			15,500				229,964				11,765				5,261				10,568				47				257,229				28,595				800
Preferred dividends and discount accretion			3,059				3,055				3,052				3,045				3,041								9,166				9,103
Net income available to common     shareholders		$	12,441			$	226,909			$	8,713			$	2,216			$	7,527				65			$	248,063			$	19,492				1,173
PERFORMANCE MEASURES
Per common share:
Diluted income		$	.21			$	3.90			$	.15			$	.04			$	.13				62			$	4.24			$	.34				1,147
Book value			10.99				10.90				6.85				6.67				6.75				63				10.99				6.75	%			63
Tangible book value (2)			10.95				10.82				6.76				6.57				6.64				65				10.95				6.64				65
Key performance ratios:
Return on equity (1)(3)			7.38	%			197.22	%			8.51	%			2.15	%			7.43	%							64.29	%			6.57
Return on assets (3)			.86				13.34				.70				.31				.63								4.93				.53
Net interest margin (3)			3.26				3.31				3.38				3.44				3.60								3.32				3.52					%
Efficiency ratio			58.55				68.89				64.97				71.69				62.95								64.19				63.36
Equity to assets			11.80				11.57	(4)			8.60				8.63				8.75								9.91				8.42
Tangible equity to assets (2)			11.76				11.53	(4)			8.53				8.55				8.66								9.85				8.32
Tangible common equity to assets (2)			9.02				8.79	(4)			5.66				5.67				5.73								7.04				5.50
Tangible common equity to risk-         weighted assets (2)			13.34				13.16				8.45				8.26				8.44								13.34				8.44
ASSET QUALITY *
Non-performing loans		$	26,088			$	27,864			$	96,006			$	109,894			$	115,001							$	26,088			$	115,001
Foreclosed properties			4,467				3,936				16,734				18,264				26,958								4,467				26,958
Total non-performing assets (NPAs)			30,555				31,800				112,740				128,158				141,959								30,555				141,959
Allowance for loan losses			80,372				81,845				105,753				107,137				107,642								80,372				107,642
Net charge-offs			4,473				72,408				12,384				14,505				20,563								89,265				55,326
Allowance for loan losses to loans			1.88	%			1.95	%			2.52	%			2.57	%			2.60	%							1.88	%			2.60	%
Net charge-offs to average loans (3)			.42				6.87				1.21				1.39				1.99								2.84				1.80
NPAs to loans and foreclosed properties			.72				.76				2.68				3.06				3.41								.72				3.41
NPAs to total assets			.42				.44				1.65				1.88				2.12								.42				2.12
AVERAGE BALANCES ($ in millions)
Loans		$	4,250			$	4,253			$	4,197			$	4,191			$	4,147				2			$	4,234			$	4,157				2
Investment securities			2,178				2,161				2,141				2,088				1,971				11				2,160				2,089				3
Earning assets			6,615				6,608				6,547				6,482				6,346				4				6,590				6,569				-
Total assets			7,170				6,915				6,834				6,778				6,648				8				6,974				6,894				1
Deposits			5,987				5,983				5,946				5,873				5,789				3				5,972				5,890				1
Shareholders’ equity			846				636				588				585				582				45				691				580				19
Common shares - basic (thousands)			59,100				58,141				58,081				57,971				57,880								58,443				57,826
Common shares - diluted (thousands)			59,202				58,141				58,081				57,971				57,880								58,444				57,826
AT PERIOD END ($ in millions)
Loans *		$	4,267			$	4,189			$	4,194			$	4,175			$	4,138				3			$	4,267			$	4,138				3
Investment securities			2,169				2,152				2,141				2,079				2,025				7				2,169				2,025				7
Total assets			7,243				7,163				6,849				6,802				6,699				8				7,243				6,699				8
Deposits			6,113				6,012				6,026				5,952				5,823				5				6,113				5,823				5
Shareholders’ equity			852				829				592				581				585				46				852				585				46
Common shares outstanding (thousands)			59,412				57,831				57,767				57,741				57,710								59,412				57,710
(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
		2013												2012								For the Nine Months
(in thousands, except per share		Third				Second				First				Fourth				Third				Ended September 30,
data; taxable equivalent)		Quarter				Quarter				Quarter				Quarter				Quarter				2013				2012
Interest revenue reconciliation
Interest revenue - taxable equivalent		$	61,363			$	61,693			$	62,134			$	64,450			$	65,978			$	185,190			$	202,979
Taxable equivalent adjustment			(370	)			(368	)			(365	)			(381	)			(419	)			(1,103	)			(1,309	)
Interest revenue (GAAP)		$	60,993			$	61,325			$	61,769			$	64,069			$	65,559			$	184,087			$	201,670
Net interest revenue reconciliation
Net interest revenue - taxable equivalent		$	54,338			$	54,562			$	54,659			$	56,028			$	57,371			$	163,559			$	173,071
Taxable equivalent adjustment			(370	)			(368	)			(365	)			(381	)			(419	)			(1,103	)			(1,309	)
Net interest revenue (GAAP)		$	53,968			$	54,194			$	54,294			$	55,647			$	56,952			$	162,456			$	171,762
Total revenue reconciliation
Total operating revenue		$	65,482			$	22,374			$	56,485			$	56,789			$	55,635			$	144,341			$	166,581
Taxable equivalent adjustment			(370	)			(368	)			(365	)			(381	)			(419	)			(1,103	)			(1,309	)
Total revenue (GAAP)		$	65,112			$	22,006			$	56,120			$	56,408			$	55,216			$	143,238			$	165,272
Income (loss) before taxes reconciliation
Income (loss) before taxes		$	25,385			$	(26,449	)		$	12,715			$	6,063			$	10,852			$	11,651			$	30,533
Taxable equivalent adjustment			(370	)			(368	)			(365	)			(381	)			(419	)			(1,103	)			(1,309	)
Income (loss) before taxes (GAAP)		$	25,015			$	(26,817	)		$	12,350			$	5,682			$	10,433			$	10,548			$	29,224
Income tax expense (benefit) reconciliation
Income tax expense (benefit)		$	9,885			$	(256,413	)		$	950			$	802			$	284			$	(245,578	)		$	1,938
Taxable equivalent adjustment			(370	)			(368	)			(365	)			(381	)			(419	)			(1,103	)			(1,309	)
Income tax expense (benefit) (GAAP)		$	9,515			$	(256,781	)		$	585			$	421			$	(135	)		$	(246,681	)		$	629
Book value per common share reconciliation
Tangible book value per common share		$	10.95			$	10.82			$	6.76			$	6.57			$	6.64			$	10.95			$	6.64
Effect of goodwill and other intangibles			.04				.08				.09				.10				.11				.04				.11
Book value per common share (GAAP)		$	10.99			$	10.90			$	6.85			$	6.67			$	6.75			$	10.99			$	6.75
Average equity to assets reconciliation
Tangible common equity to assets			9.02	%			8.79	%			5.66	%			5.67	%			5.73	%			7.04	%			5.50	%
Effect of preferred equity			2.74				2.74				2.87				2.88				2.93				2.81				2.82
Tangible equity to assets			11.76				11.53				8.53				8.55				8.66				9.85				8.32
Effect of goodwill and other intangibles			.04				.04				.07				.08				.09				.06				.10
Equity to assets (GAAP)			11.80	%			11.57	%			8.60	%			8.63	%			8.75	%			9.91	%			8.42	%
Tangible common equity to risk-weighted assets reconciliation
Tangible common equity to risk-weighted assets			13.34	%			13.16	%			8.45	%			8.26	%			8.44	%			13.34	%			8.44	%
Effect of other comprehensive income			.49				.29				.49				.51				.36				.49				.36
Effect of deferred tax limitation			(4.72	)			(4.99	)			—				—				—				(4.72	)			—
Effect of trust preferred			1.09				1.11				1.15				1.15				1.17				1.09				1.17
Effect of preferred equity			4.01				4.11				4.22				4.24				4.29				4.01				4.29
Tier I capital ratio (Regulatory)			14.21	%			13.68	%			14.31	%			14.16	%			14.26	%			14.21	%			14.26	%

 

 

 

 

UNITED COMMUNITY BANKS, INC.
Financial Highlights
Loan Portfolio Composition at Period-End (1)
		2013												2012								Linked				Year over
			Third				Second				First				Fourth				Third			Quarter				Year
(in millions)			Quarter				Quarter				Quarter				Quarter				Quarter			Change				Change
LOANS BY CATEGORY
Owner occupied commercial RE		$	1,129			$	1,119			$	1,130			$	1,131			$	1,126			$	10			$	3
Income producing commercial RE			614				629				674				682				693				(15	)			(79	)
Commercial & industrial			457				437				454				458				460				20				(3	)
Commercial construction			137				133				152				155				161				4				(24	)
Total commercial			2,337				2,318				2,410				2,426				2,440				19				(103	)
Residential mortgage			888				876				850				829				833				12				55
Home equity lines of credit			421				402				396				385				341				19				80
Residential construction			318				332				372				382				389				(14	)			(71	)
Consumer installment			303				261				166				153				135				42				168
Total loans		$	4,267			$	4,189			$	4,194			$	4,175			$	4,138				78				129
LOANS BY MARKET
North Georgia		$	1,262			$	1,265			$	1,363			$	1,364			$	1,383				(3	)			(121	)
Atlanta MSA			1,246				1,227				1,262				1,250				1,238				19				8
North Carolina			575				576				575				579				579				(1	)			(4	)
Coastal Georgia			421				397				398				400				380				24				41
Gainesville MSA			253				256				259				261				256				(3	)			(3	)
East Tennessee			277				282				282				283				283				(5	)			(6	)
South Carolina			47				34				—				—				—				13				47
Other (2)			186				152				55				38				19				34				167
Total loans		$	4,267			$	4,189			$	4,194			$	4,175			$	4,138				78				129
RESIDENTIAL CONSTRUCTION
Dirt loans
Acquisition & development		$	40			$	42			$	57			$	62			$	71				(2	)			(31	)
Land loans			35				36				42				46				41				(1	)			(6	)
Lot loans			167				173				188				193				196				(6	)			(29	)
Total			242				251				287				301				308				(9	)			(66	)
House loans
Spec			30				34				40				41				44				(4	)			(14	)
Sold			46				47				45				40				37				(1	)			9
Total			76				81				85				81				81				(5	)			(5	)
Total residential construction		$	318			$	332			$	372			$	382			$	389				(14	)			(71	)
(1)  Excludes total loans of $23.3 million, $25.7 million, $28.3 million, $33.4 million and $37.0 million as of September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, 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 2013												Second Quarter 2013												First Quarter 2013
		Non-performing				Foreclosed				Total				Non-performing				Foreclosed				Total				Non-performing				Foreclosed				Total
(in thousands)		Loans				Properties				NPAs				Loans				Properties				NPAs				Loans				Properties				NPAs
NONPERFORMING ASSETS BY CATEGORY
Owner occupied CRE		$	6,358			$	591			$	6,949			$	5,283			$	547			$	5,830			$	8,142			$	4,750			$	12,892
Income producing CRE			1,657				139				1,796				1,954				—				1,954				9,162				834				9,996
Commercial & industrial			609				—				609				548				—				548				29,545				—				29,545
Commercial construction			343				376				719				504				376				880				22,359				3,027				25,386
Total commercial			8,967				1,106				10,073				8,289				923				9,212				69,208				8,611				77,819
Residential mortgage			11,335				1,679				13,014				12,847				1,303				14,150				10,901				3,463				14,364
Home equity lines of credit			1,169				475				1,644				1,491				140				1,631				916				—				916
Residential construction			4,097				1,207				5,304				4,838				1,570				6,408				14,592				4,660				19,252
Consumer installment			520				—				520				399				—				399				389				—				389
Total NPAs		$	26,088			$	4,467			$	30,555			$	27,864			$	3,936			$	31,800			$	96,006			$	16,734			$	112,740
Balance as a % of
Unpaid Principal			61.6	%			41.5	%			57.6	%			62.6	%			31.6	%			55.8	%			66.3	%			45.0	%			62.0	%
NONPERFORMING ASSETS BY MARKET
North Georgia		$	13,652			$	1,726			$	15,378			$	12,830			$	1,617			$	14,447			$	63,210			$	6,616			$	69,826
Atlanta MSA			3,096				1,026				4,122				3,803				1,197				5,000				17,380				3,524				20,904
North Carolina			5,680				762				6,442				6,512				295				6,807				8,519				2,533				11,052
Coastal Georgia			995				928				1,923				2,588				627				3,215				3,523				1,449				4,972
Gainesville MSA			1,036				—				1,036				1,008				—				1,008				911				370				1,281
East Tennessee			1,629				25				1,654				1,123				200				1,323				2,463				2,242				4,705
South Carolina			—				—				—				—				—				—				—				—				—
Other (3)			—				—				—				—				—				—				—				—				—
Total NPAs		$	26,088			$	4,467			$	30,555			$	27,864			$	3,936			$	31,800			$	96,006			$	16,734			$	112,740
NONPERFORMING ASSETS ACTIVITY
Beginning Balance		$	27,864			$	3,936			$	31,800			$	96,006			$	16,734			$	112,740			$	109,894			$	18,264			$	128,158
Loans placed on non-accrual			9,959				—				9,959				13,200				—				13,200				9,665				—				9,665
Payments received			(3,601	)			—				(3,601	)			(47,937	)			—				(47,937	)			(6,809	)			—				(6,809	)
Loan charge-offs			(5,395	)			—				(5,395	)			(23,972	)			—				(23,972	)			(10,456	)			—				(10,456	)
Foreclosures			(2,739	)			2,739				—				(9,433	)			9,433				—				(6,288	)			6,288				—
Capitalized costs			—				7				7				—				55				55				—				54				54
Property sales			—				(2,534	)			(2,534	)			—				(17,972	)			(17,972	)			—				(6,726	)			(6,726	)
Write downs			—				(329	)			(329	)			—				(1,369	)			(1,369	)			—				(1,041	)			(1,041	)
Net gains (losses) on sales			—				648				648				—				(2,945	)			(2,945	)			—				(105	)			(105	)
Ending Balance		$	26,088			$	4,467			$	30,555			$	27,864			$	3,936			$	31,800			$	96,006			$	16,734			$	112,740

 

		Third Quarter 2013								Second Quarter 2013								First 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		$	1,641				.58	%		$	16,545				5.85	%		$	1,922				.69	%
Income producing CRE			216				.14				8,921				5.45				3,321				1.99
Commercial & industrial			136				.12				15,576				13.91				1,501				1.34
Commercial construction			133				.39				6,295				17.53				(4	)			(.01	)
Total commercial			2,126				.36				47,337				7.96				6,740				1.14
Residential mortgage			693				.31				5,469				2.52				1,635				.79
Home equity lines of credit			382				.37				1,040				1.04				512				.53
Residential construction			1,072				1.31				18,506				20.91				2,973				3.22
Consumer installment			200				.28				56				.10				524				1.35
Total		$	4,473				.42			$	72,408				6.87			$	12,384				1.21
NET CHARGE-OFFS BY MARKET
North Georgia		$	2,090				.66	%		$	59,102				17.20	%		$	4,868				1.45	%
Atlanta MSA			1,013				.33				9,986				3.21				3,295				1.07
North Carolina			704				.49				1,952				1.36				2,249				1.59
Coastal Georgia			139				.14				480				.49				821				.85
Gainesville MSA			97				.15				123				.19				430				.67
East Tennessee			359				.51				711				1.01				679				.98
South Carolina			—				—				—				—				—				—
Other (3)			71				.17				54				.24				42				.39
Total		$	4,473				.42			$	72,408				6.87			$	12,384				1.21

 

(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)		2013				2012				2013				2012
Interest revenue:
Loans, including fees		$	50,114			$	53,868			$	151,776			$	163,805
Investment securities, including tax exempt of $202, $225, $624 and $737			9,872				10,706				29,518				34,772
Deposits in banks and short-term investments			1,007				985				2,793				3,093
Total interest revenue			60,993				65,559				184,087				201,670
Interest expense:
Deposits:
NOW			413				447				1,286				1,587
Money market			545				599				1,641				1,901
Savings			37				37				109				112
Time			2,486				4,612				8,636				15,844
Total deposit interest expense			3,481				5,695				11,672				19,444
Short-term borrowings			525				514				1,563				2,463
Federal Home Loan Bank advances			16				26				65				882
Long-term debt			3,003				2,372				8,331				7,119
Total interest expense			7,025				8,607				21,631				29,908
Net interest revenue			53,968				56,952				162,456				171,762
Provision for loan losses			3,000				15,500				62,500				48,500
Net interest revenue after provision for loan losses			50,968				41,452				99,956				123,262
Fee revenue:
Service charges and fees			8,456				7,696				23,831				23,295
Mortgage loan and other related fees			2,554				2,800				8,212				7,221
Brokerage fees			1,274				709				3,104				2,331
Securities gains, net			—				—				116				7,047
Loss from prepayment of debt			—				—				—				(6,681	)
Other			1,860				2,559				8,019				8,797
Total fee revenue			14,144				13,764				43,282				42,010
Total revenue			65,112				55,216				143,238				165,272
Operating expenses:
Salaries and employee benefits			23,090				22,918				71,416				72,440
Communications and equipment			3,305				3,254				9,819				9,620
Occupancy			3,379				3,539				10,195				10,849
Advertising and public relations			962				934				2,937				2,868
Postage, printing and supplies			644				954				2,401				2,849
Professional fees			2,650				2,180				7,515				6,107
Foreclosed property			194				3,706				7,678				9,382
FDIC assessments and other regulatory charges			2,405				2,537				7,415				7,592
Amortization of intangibles			427				728				1,623				2,190
Other			3,041				4,033				11,691				12,151
Total operating expenses			40,097				44,783				132,690				136,048
Net income before income taxes			25,015				10,433				10,548				29,224
Income tax expense (benefit)			9,515				(135	)			(246,681	)			629
Net income			15,500				10,568				257,229				28,595
Preferred stock dividends and discount accretion			3,059				3,041				9,166				9,103
Net income available to common shareholders		$	12,441			$	7,527			$	248,063			$	19,492
Earnings per common share
Basic		$	.21			$	.13			$	4.24			$	.34
Diluted			.21				.13				4.24				.34
Weighted average common shares outstanding
Basic			59,100				57,880				58,443				57,826
Diluted			59,202				57,880				58,444				57,826

 

 

UNITED COMMUNITY BANKS, INC.
Consolidated Balance Sheet
		September 30,				December 31,				September 30,
(in thousands, except share and per share data)		2013				2012				2012
		(unaudited)				(audited)				(audited)
ASSETS
Cash and due from banks		$	70,986			$	66,536			$	57,270
Interest-bearing deposits in banks			131,147				124,613				119,355
Short-term investments			62,000				60,000				45,000
Cash and cash equivalents			264,133				251,149				221,625
Securities available for sale			1,963,424				1,834,593				1,761,994
Securities held to maturity (fair value $214,651, $261,131 and $281,336)			205,613				244,184				262,648
Mortgage loans held for sale			11,987				28,821				30,571
Loans, net of unearned income			4,267,067				4,175,008				4,137,845
Less allowance for loan losses			(80,372	)			(107,137	)			(107,642	)
Loans, net			4,186,695				4,067,871				4,030,203
Assets covered by loss sharing agreements with the FDIC			31,207				47,467				53,070
Premises and equipment, net			165,993				168,920				170,532
Bank owned life insurance			80,537				81,867				81,574
Accrued interest receivable			18,199				18,659				19,133
Goodwill and other intangible assets			3,888				5,510				6,237
Foreclosed property			4,467				18,264				26,958
Net deferred tax asset			269,784				—				—
Other assets			37,366				34,954				34,690
Total assets		$	7,243,293			$	6,802,259			$	6,699,235
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand		$	1,418,782			$	1,252,605			$	1,210,703
NOW			1,279,134				1,316,453				1,184,341
Money market			1,197,495				1,149,912				1,126,312
Savings			249,044				227,308				222,431
Time:
Less than $100,000			925,089				1,055,271				1,123,672
Greater than $100,000			624,019				705,558				731,766
Brokered			419,344				245,033				223,474
Total deposits			6,112,907				5,952,140				5,822,699
Short-term borrowings			53,769				52,574				53,243
Federal Home Loan Bank advances			125				40,125				50,125
Long-term debt			129,865				124,805				120,285
Unsettled securities purchases			11,610				—				24,319
Accrued expenses and other liabilities			82,800				51,210				43,309
Total liabilities			6,391,076				6,220,854				6,113,980
Shareholders' equity:
Preferred stock, $1 par value; 10,000,000 shares authorized;
Series A; $10 stated value; 21,700 shares issued and outstanding			217				217				217
Series B; $1,000 stated value; 180,000 shares issued and outstanding			179,714				178,557				178,183
Series D; $1,000 stated value; 16,613 shares issued and outstanding			16,613				16,613				16,613
Common stock, $1 par value; 100,000,000 shares authorized;
45,222,839, 42,423,870 and 42,393,319 shares issued and outstanding			45,223				42,424				42,393
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
14,189,006, 15,316,794 and 15,316,794 shares issued and outstanding			14,189				15,317				15,317
Common stock issuable; 242,262, 133,238 and 129,270 shares			3,979				3,119				3,247
Capital surplus			1,077,536				1,057,951				1,056,998
Accumulated deficit			(461,090	)			(709,153	)			(711,369	)
Accumulated other comprehensive loss			(24,164	)			(23,640	)			(16,344	)
Total shareholders' equity			852,217				581,405				585,255
Total liabilities and shareholders' equity		$	7,243,293			$	6,802,259			$	6,699,235

 

 

UNITED COMMUNITY BANKS, INC.
Average Consolidated Balance Sheets and Net Interest Analysis
For the Three Months Ended September 30,
							2013												2012
			Average								Avg.				Average								Avg.
(dollars in thousands, taxable equivalent)			Balance				Interest				Rate				Balance				Interest				Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)		$	4,249,892			$	50,217				4.69	%		$	4,147,220			$	53,963				5.18	%
Taxable securities (3)			2,157,448				9,670				1.79				1,947,780				10,481				2.15
Tax-exempt securities (1)(3)			20,913				331				6.32				22,895				368				6.43
Federal funds sold and other interest-earning assets			186,544				1,145				2.46				227,950				1,166				2.05
Total interest-earning assets			6,614,797				61,363				3.69				6,345,845				65,978				4.14
Non-interest-earning assets:
Allowance for loan losses			(83,408	)											(112,034	)
Cash and due from banks			63,890												51,705
Premises and equipment			166,906												171,608
Other assets (3)			407,912												190,439
Total assets		$	7,170,097											$	6,647,563
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW		$	1,222,334				413				.13			$	1,176,087				447				.15
Money market			1,328,661				545				.16				1,157,655				599				.21
Savings			248,937				37				.06				221,186				37				.07
Time less than $100,000			952,320				1,369				.57				1,144,103				2,260				.79
Time greater than $100,000			644,264				1,229				.76				750,828				1,876				.99
Brokered time deposits			233,842				(112	)			(.19	)			176,114				476				1.08
Total interest-bearing deposits			4,630,358				3,481				.30				4,625,973				5,695				.49
Federal funds purchased and other borrowings			67,292				525				3.10				55,994				514				3.65
Federal Home Loan Bank advances			32,082				16				.20				44,473				26				.23
Long-term debt			144,601				3,003				8.24				120,276				2,372				7.85
Total borrowed funds			243,975				3,544				5.76				220,743				2,912				5.25
Total interest-bearing liabilities			4,874,333				7,025				.57				4,846,716				8,607				.71
Non-interest-bearing liabilities:
Non-interest-bearing deposits			1,356,792												1,163,471
Other liabilities			93,247												55,607
Total liabilities			6,324,372												6,065,794
Shareholders' equity			845,725												581,769
Total liabilities and shareholders' equity		$	7,170,097											$	6,647,563
Net interest revenue						$	54,338											$	57,371
Net interest-rate spread											3.12	%											3.43	%
Net interest margin (4)											3.26	%											3.60	%

 

(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 $10.6 million in 2013 and pretax unrealized gains of $22.9 million in 2012 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,
		2013												2012
			Average								Avg.				Average								Avg.
(dollars in thousands, taxable equivalent)			Balance				Interest				Rate				Balance				Interest				Rate
Assets:
Interest-earning assets:
Loans, net of unearned income (1)(2)		$	4,233,531			$	152,022				4.80	%		$	4,157,057			$	164,101				5.27	%
Taxable securities (3)			2,138,725				28,894				1.80				2,065,112				34,035				2.20
Tax-exempt securities (1)(3)			21,411				1,022				6.36				24,187				1,207				6.65
Federal funds sold and other interest-earning assets			196,445				3,252				2.21				322,998				3,636				1.50
Total interest-earning assets			6,590,112				185,190				3.76				6,569,354				202,979				4.13
Non-interest-earning assets:
Allowance for loan losses			(100,154	)											(115,252	)
Cash and due from banks			63,879												52,755
Premises and equipment			168,144												173,410
Other assets (3)			252,275												214,068
Total assets		$	6,974,256											$	6,894,335
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW		$	1,256,684				1,286				.14			$	1,304,159				1,587				.16
Money market			1,297,792				1,641				.17				1,120,091				1,901				.23
Savings			242,807				109				.06				214,280				112				.07
Time less than $100,000			997,193				4,686				.63				1,199,563				7,806				.87
Time greater than $100,000			670,821				4,086				.81				783,370				6,354				1.08
Brokered time deposits			201,599				(136	)			(.09	)			162,682				1,684				1.38
Total interest-bearing deposits			4,666,896				11,672				.33				4,784,145				19,444				.54
Federal funds purchased and other borrowings			70,512				1,563				2.96				85,022				2,463				3.87
Federal Home Loan Bank advances			41,352				65				.21				153,539				882				.77
Long-term debt			131,491				8,331				8.47				120,256				7,119				7.91
Total borrowed funds			243,355				9,959				5.47				358,817				10,464				3.90
Total interest-bearing liabilities			4,910,251				21,631				.59				5,142,962				29,908				.78
Non-interest-bearing liabilities:
Non-interest-bearing deposits			1,305,133												1,105,607
Other liabilities			68,312												65,390
Total liabilities			6,283,696												6,313,959
Shareholders' equity			690,560												580,376
Total liabilities and shareholders' equity		$	6,974,256											$	6,894,335
Net interest revenue						$	163,559											$	173,071
Net interest-rate spread											3.17	%											3.35	%
Net interest margin (4)											3.32	%											3.52	%

 

(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 $7.96 million in 2013 and pretax unrealized gains of $24.1 million in 2012 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.

 

 

Third Quarter 2013 Investor Presentation United Community Banks, Inc. Jimmy C. Tallent President & Chief Executive Officer H. Lynn Harton Chief Operating Officer Rex S. Schuette Executive Vice President & Chief Financial Officer rex_schuette@ucbi.com (706) 781 - 2266 David P. Shearrow Executive Vice President & Chief Risk Officer

Cautionary Statement This investor presentation may contain 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 Community Banks, Inc . ’s filings with the Securities and Exchange Commission including its 2012 Annual Report on Form 10 - K under the sections entitled “Forward - Looking Statements” . Forward - looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward - looking statements . 2 Non - GAAP Measures This presentation also contains financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”) . Such non - GAAP financial measures include the following : core fee revenue, core operating expense, core earnings, tangible common equity to tangible assets, tangible equity to tangible assets and tangible common equity to risk - weighted assets . The most comparable GAAP measures to these measures are : fee revenue, operating expense, net income (loss), and equity to assets . Management uses these non - GAAP financial measures because we believe it is useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance . Management believes these non - GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results and credit trends, as well as for comparison to financial results for prior periods . These non - GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies . For a reconciliation of the differences between our non - GAAP financial measures and the most comparable GAAP measures, please refer to the ‘Non - GAAP Reconcilement Tables’ at the end of the Appendix to this presentation .

United at a Glance □ Founded in 1950 □ Third - largest bank holding company in Georgia □ Headquartered in Blairsville, Georgia with 103 locations throughout north Georgia, metro Atlanta, coastal Georgia, western North Carolina, western South Carolina, and east Tennessee □ 1,496 employees Market Offices Deposit Share Rank North Georgia 22 34% 1 Total assets $7.24 Atlanta MSA 36 4 6 Total deposits $6.11 Gainesville MSA 5 12 4 Loans $4.27 Coastal Georgia 8 4 7 Western North Carolina 20 13 3 East Tennessee 8 2 8 Deposit Market Share (1) Key Statistics as of 9/30/13 (billions) 1 FDIC deposit market share and rank as of June 30, 2013 for markets where United takes deposits. Source: SNL and FDIC. 3

Business and Operating Model 4 Service is Point of Differentiation • #1 in Customer Satisfaction according to Customer Service Profiles • J.D. Power 2013 Retail Banking Satisfaction Study rates United among the top 2 banks in the southeast • Golden rule of banking – treating people the way we want to be treated • “The Bank that SERVICE Built” • Customer surveys continue with 95 %+ satisfaction rate “Community bank service, large bank resources” Twenty - seven “community banks” Local CEOs with deep roots in their communities Resources of a $7.24 billion bank Strategic footprint with substantial banking opportunities Operates in a number of the more demographically attractive U.S. markets Disciplined growth strategy Organic supported by de novos and selective acquisitions

KEY EVENTS & BACKGROUND United Community Banks, Inc. 5

Highlights Third Quarter 6 Improving Quarterly Results • Net income of $15.5 million, or $.21 per share • Core earnings (pre - tax, pre - credit) of $29.0 million, up $2.4 million from second quarter • Return on assets of .86% Solid Improvement in All Credit Quality Metrics • Credit metrics at pre - credit crisis levels • Credit costs decline substantially: Provision of $3 million / foreclosure costs of $.2 million • Net charge - offs decline to $4.5 million or .42% of total loans • Allowance of $80.4 million or 1.88% of total loans • NPAs declined to $30.6 million and .42% of total assets • Classified assets of $204 million (26% of Tier I + ALL vs. 27% for 2Q13 and 55% for 3Q13) Operating Efficiencies Strengthen • Efficiency ratio of 58.6% at lowest level since pre - credit crisis • Core operating expenses down $2.7 million to second quarter and down $1.2 million to last year • Continued focus on reducing costs and improving fee revenue • Also impacted by lower credit related costs due to second quarter classified asset sales

Highlights Third Quarter 7 Core Fee Revenue Retains Strength • Up $1 million compared to last year and down slightly from 2Q13 • Higher service charges and brokerage fees • Offset slightly by lower mortgage volume and fees Loan Growth Returns to Mid - Single Digit Levels • Net loan growth of $78 million, or 7.4% annualized Continued Strong Core Transaction Deposit Growth • Up $94 million in the third quarter or 11% annualized • Up $278 million from year ago or 9% • Represents 60% of total customer deposits compared to 34% at the end of 2008 Solid Capital Ratios and Improved Debt Position • Added $19.4 million of common equity with warrant exercise • Tier I Common to Risk Weighted Assets of 9.11% • Tier 1 Risk Based Capital of 14.21% and Tier I Leverage of 10.0% • Repaid 7.5% ($35 million) sub - debt with 6% ($40 million) Senior Notes

GOALS United Community Banks, Inc. 8

Goals 9 Our Goal: Leverage Our Strengths • Strong local leadership • Funding advantage in our legacy markets • Consistent and attractive culture • Class leading customer satisfaction • Low employee turnover To Grow Our Business The Right Way • Become better retail and small business bank • Grow sales: Better product design, merchandising, campaign execution • Streamline delivery process that focuses on how we serve our customer in the end • HELOC program success: $32 million growth in 3Q to $187 million • Smarter Mortgage added $45 million growth in 3Q to $149 million • Continue to invest in, and improve commercial and retail capabilities • Diversify portfolio – focus on C&I, owner occupied, and consumer lending • Momentum building across footprint • Invest in people: 25 strategic hires past year in the front and back office initiatives and position for long term growth • Enter new markets: LPO in Greenville, SC (4Q12); Nashville, TN (2Q13) with healthcare industry focus; expand territory and commercial loan potential • Positive net loan growth going forward • Customer derivative swap program – meeting customer needs while adding revenue

Goals 10 Grow Existing Fee Businesses at Faster Pace • Mortgage First Priority • Performing well, but at 50% of peers • Focus on home purchase product as well as refinancings • Focus on lower performing markets • Invest in management, people and new markets • Advisory Services • Customer satisfaction high • Invest in management, people, and new markets $2.80 $3.26 $2.66 $3.00 $2.55 $0.75 $1.50 $2.25 $3.00 3Q12 4Q12 1Q13* 2Q13 3Q13 NGA and NC Other Markets Mortgage Fee Revenue $ in millions VOLUME OF NEW HOME MORTGAGES 33% 40% 43% 49% 59%

84 86 87 89 96 100 25 50 75 100 125 .20 .21 .21 .21 .25 .26 $.05 $.10 $.15 $.20 $.25 $.30 2Q13 Actual 3Q13 Actual Expense Fee Revenue Loan Growth Debt/Equity Goals – Earnings per Share / Return on Assets 11 Earnings per Share (quarter) Return on Assets (bps) Proforma Savings Initiatives $500 Million Initiatives 40 BPS Credit Costs $3 Million $3 Million Tax Rate 36%

FINANCIAL REVIEW United Community Banks, Inc. 12

Core Earnings & Core Fee Revenue 13 CORE EARNINGS 3Q13 2Q13 3Q12 Net Interest Revenue 54,338$ (224)$ (3,033)$ Fee Revenue 13,966 (97) 963 Gross Revenue 68,304 (321) (2,070) Operating Expense (Excl OREO) 39,325 (2,742) (1,198) Pre-Tax, Pre-Credit (Core) 28,979$ 2,421$ (872)$ Net Interest Margin 3.26 % (.05)% (.34)% Variance - Increase / (Decrease) CORE FEE REVENUE 3Q13 2Q13 3Q12 Overdraft Fees 3,203$ 171$ (159)$ Interchange Fees 3,952 314 889 Other Service Charges 1,301 (1) 30 Total Service Charges and Fees 8,456 484 760 Mortgage Loan & Related Fees 2,554 (449) (246) Brokerage Fees 1,274 211 565 Other 1,682 (343) (116) Total Fee Revenue - Core 13,966 (97) 963 Non-Core (1) 178 (2,071) (583) Reported - GAAP 14,144$ (2,168)$ 380$ Variance - Increase / (Decrease) $ in thousands (1) Includes securities gains (losses), gains from hedge ineffectiveness, gains from the sale of low income housing credits, deferred compensation gains, and BOLI death benefit gain. $57.4 $56.0 $54.7 $54.6 $54.3 $40.5 $41.6 $40.9 $42.1 $39.3 $29.9 $29.1 $26.4 $26.6 $29.0 $13.0 $14.6 $12.6 $14.1 $14.0 $10 $20 $30 $40 $50 $60 3Q12 4Q12 1Q13 1Q13 3Q13 Net Interest Revenue Core Operating Expenses Core Earnings Core Fee Revenue $ in millions Core Earnings $29 Million Up $2.4 million from 2Q13 and down $872 thousand from a year ago

Core Operating Expenses 14 3Q13 2Q13 3Q12 Salaries & Employee Benefits 22,512$ (617)$ 148$ Communications & Equipment 3,305 (163) 51 Occupancy 3,379 (70) (160) FDIC Assessment 2,405 (100) (132) Advertising & Public Relations 962 (75) 28 Postage, Printing & Supplies 644 (250) (310) Professional Fees 2,650 151 470 Other Expense 3,468 (1,618) (1,293) Core Operating Expenses 39,325 (2,742) (1,198) Non-Core (1) 772 (5,984) (3,488) Reported GAAP 40,097$ (8,726)$ (4,686)$ Variance - Increase / (Decrease) $ in thousands (1) Includes foreclosed property costs, severance, and deferred compensation gains and losses.

$57.4 $56.0 $54.7 $54.6 $54.3 $45 $49 $53 $57 $61 3Q12 4Q12 1Q13 2Q13 3Q13 3.60% 3.44% 3.38% 3.31% 3.26% 3.0% 3.5% 4.0% Net Interest Margin Key Drivers of Net Interest Revenue / Margin 15 5.18% 4.79% 4.69% 2.15% 1.77% 1.79% .49% .34% .30% 0% 2% 4% 6% 3Q12 4Q12 1Q13 2Q13 3Q13 Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s Net Interest Revenue & Margin $ in millions Key Drivers of NIR – Loan Growth Net Interest Revenue • Offset margin compression by growing loans • 3Q13 growth impacted by : x Loan pricing competition x Offset slightly by higher securities yields .30 .30 .30 .20 .19 .21 .21 .18 .16 .16 .14 .14 .13 .13 .13 0 .10 .20 .30 .40 3Q12 4Q12 1Q13 2Q13 3Q13 CDs MMDA NOW Key Drivers of NIR – Deposit Pricing (excl. brokered) • CD pricing reflects the quarter - average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter

Net Income 16 $ in thousands NET OPERATING INCOME 3Q13 2Q13 3Q12 Core Earnings (Pre-Tax, Pre-Credit) 28,979$ 2,421$ (872)$ Provision for Loan Loss 3,000 (45,500) (12,500) NON-CORE FEE REVENUE: Hedge Ineffectiveness Gains (Losses) (81) (450) (689) BOLI Death Benefit Gain 86 (1,280) 86 Gains from Sale of Low Income Housing Tax Credits - (468) - Gains (Losses) on Deferred Compensation Plan Assets 173 127 20 Total Non-Core Fee Revenue 178 (2,071) (583) NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 329 (1,040) (2,065) Foreclosed Property (Gains) Losses on Sales (648) (3,593) (998) Forclosed Property Maintenance Expenses 513 (324) (449) Severance Costs 405 (1,154) 4 Gains (Losses) on Deferred Comp Plan Liability 173 127 20 Total Non-Core Operating Expenses 772 (5,984) (3,488) Income Tax Expense (Benefit) 9,885 266,298 9,601 Net Income 15,500$ (214,464)$ 4,932$ Preferred Stock Dividends 3,059 4 18 Net Income Avail to Common Shareholders 12,441$ (214,468)$ 4,914$ Net Income Per Share .21$ (3.69)$ .08$ Tangible Book Value 10.95$ .13$ 4.31$ Variance - Increase / (Decrease) 2Q13 230.0$ 1Q13 11.8 4Q12 5.3 3Q12 10.6 Prior Quarterly Net Income 59.4 Million Shares Outstanding $ in millions

Customer Deposit Mix & Core Growth 17 Time >$100M 10% Demand & NOW 35% Deposits by % / Customer Mix Public Funds 14% Time <$100M 16% MMDA & Sav 25% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% $ in millions 3Q13 $5.7B 60%* 2Q08 $6.2B 34%* 3Q13 2Q13 3Q12 4Q08 Demand / NOW 1,979$ 1,916$ 1,796$ 1,457$ MMDA / Savings 1,437 1,406 1,342 630 Core Transaction 3,416 3,322 3,138 2,087 Time < $100,000 920 977 1,118 1,945 Public Deposits 734 674 612 755 Total Core 5,070 4,973 4,868 4,787 Time >$100,000 593 632 699 1,336 Public Deposits 31 32 32 87 Total Customer 5,694 5,637 5,599 6,210 Brokered Deposits 419 375 224 793 Total Deposits 6,113$ 6,012$ 5,823$ 7,003$ Total Deposit Mix Significant growth in core transaction deposits since 4Q08 Core Deposit Growth – Category & Market CATEGORY 3Q13 YTD MARKET 3Q13 YTD Demand 65.8$ 149.0$ Atlanta 39.0$ 66.8$ MM Accounts 29.3 43.0 N. Georgia 36.7 72.9 Savings 1.3 21.8 North Carolina 10.5 42.4 NOW (2.3) (11.1) Coastal Georgia 3.8 5.4 Total Categories 94.1$ 202.7$ Tennessee (1.1) 0.20 Gainesville 5.2 15.0 YTD Percent Growth (Annualized) 8 % 94.1$ 202.7$ Growth Growth *% of core transaction customer deposits

Capital Ratios 18 Well- Capitalized SEP '13 JUN '13 SEP '12 Bank Tier 1 RBC 6 % 14.5 % 14.2 % 14.3 % Total RBC 10 15.7 15.5 15.6 Leverage 5 10.2 10.1 9.2 Holding Company Tangible Equity to Assets 11.8 9.1 8.2 15.8% 15.7% 15.9% 15.2% 15.5% 14.3% 14.2% 14.3% 13.7% 14.2% 9.8% 9.6% 9.7% 9.8% 10.0% 8.8% 8.8% 8.9% 8.5% 9.1% 5.7% 5.7% 5.7% 6.3% 9.0% 5% 10% 15% 3Q12 4Q12 1Q13 2Q13 3Q13 Total RBC Tier 1 RBC Leverage Tier 1 Common RBC Tangible Common to Assets 8.80% at period end 11.5% at period end

LOAN PORTFOLIO & CREDIT QUALITY United Community Banks, Inc. 19

Retail 31% $1.308 C&I 34% $1.424 Inv RE 17% $.699 Diversifying Portfolio Retail 38% $1.612 C&I 37% $1.587 Inv RE 14% $.614 Loan Portfolio (total $4.27 billion) 20 20 Commercial 55% $2.34 Geographic Diversity Residential Mortgage 31% $1.31 Period $ in Billions 3Q13 $4.267 2Q13 $4.189 1Q13 $4.194 4Q12 $4.175 3Q12 $4.138 By Loan Type 1Q11 $4.194 3Q13 $4.267 $ in billions Reduced concentrations of A&D and Investor RE loans Other (Indirect Auto) $ .186 Gainesville MSA $ .253 East Tennessee $ .277 Coastal Georgia $ .421 Western North Carolina $ .575 Atlanta MSA $ 1.246 South Carolina $.047 North Georgia $ 1.262 0% 12% 24% 36% 6% 7% 9% 14% 29% 34% Loan Diversification & Type • Reducing land exposure • Focus on small business and C&I • Enhanced retail products Total Loans 1% 4%

$281.6 $309.0 $274.4 $403.8 $370.9 $200 $250 $300 $350 $400 3Q12 4Q12 1Q13 2Q13 3Q13 New Loans Funded and Advances (1) 21 $ in m illions CATEGORY 3Q13 3Q12 3Q13 3Q12 Commercial C & I 64.5$ 47.4$ Atlanta 116.6$ 92.4$ Owner Occupied CRE 58.2 39.5 Coastal Georgia 40.5 29.8 Income Producing CRE 28.1 30.9 N. Georgia 71.5 77.3 Commercial Constr. 4.9 3.2 North Carolina 38.4 31.6 Total Commercial 155.7 121.0 Tennessee 18.9 30.2 Residential Mortgage 49.8 40.8 Gainesville 18.6 9.7 Residential HELOC 55.4 66.1 South Carolina 13.5 - Residential Construction 32.5 25.5 Other (Indirect Auto) 52.9 10.6 Consumer 77.5 28.2 Total Markets 370.9$ 281.6$ Total Categories 370.9 281.6 New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)

Commercial Loans (total $2.34 billion) 22 Owner Occupied 48% $1.13B Geographic Diversity Income Producing 26% $.61B C & I 20% $.46B $ in billions East Tennessee $ .136 Gainesville MSA $ .175 Western North Carolina $ .171 Coastal Georgia $ .304 North Georgia $ .573 South Carolina $ .045 Atlanta MSA $.933 0% 12% 24% 36% 6% 7% 7% 13% 25% 40% Average Loan Size Type $ in Thousands Owner Occup’d $431 Income Prod 589 C & I 93 Comm Constr 375 By Loan Type 2%

Retail (total $1.61 billion) 23 Geographic Diversity (1) Home Equity LOC 26% $.42B Avg loan size $74 thousand $ in millions South Carolina $ .001 Coastal Georgia $ .099 East Tennessee $ .130 Atlanta MSA $ .253 Western North Carolina $ .333 North Georgia $ .541 Gainesville MSA $.069 0% 12% 24% 36% 0% 7% 9% 18% 23% 38% By Loan Type Success with new portfolio products and HELOCs Conservative underwriting 62% of HE Primary Lien Mortgage 55% $.89B Avg loan size $100 thousand (1) Excludes indirect auto of $.186B 5%

Residential Construction (total $318 million) 24 Geographic Diversity Raw 11% $35 Lot 53% $167 $ in millions East Tennessee $ 12 Gainesville MSA $ 9 Coastal Georgia $ 18 Atlanta MSA $ 61 Western North Carolina $ 71 North Georgia $ 147 0% 12% 24% 36% 48% 3% 4% 6% 19% 22% 46% By Loan Type Developing 13% $40 3Q13 2Q13 1Q13 4Q12 3Q12 3Q13 vs. 3Q12 TOTAL COMPANY Land Loans Developing 40$ 42$ 57$ 62$ 71$ (31)$ Raw 35 36 42 46 41 (6) Lot 167 173 188 193 196 (29) Total 242 251 287 301 308 (66) Construction Loans Spec 30 34 40 41 44 (14) Sold 46 47 45 40 37 9 Total 76 81 85 81 81 (5) Total 318$ 332$ 372$ 382$ 389$ (71)$

Credit Quality 25 $ in millions 3Q13 2Q13 1Q13 4Q12 3Q12 Net Charge-offs 4.5$ 72.4$ 12.4$ 14.5$ 20.6$ as % of Average Loans 0.42 % 6.87 % 1.21 % 1.39 % 1.99 % Allowance for Loan Losses 80.4$ 81.8$ 105.8$ 107.1$ 107.6$ as % of Total Loans 1.88 % 1.95 % 2.52 % 2.57 % 2.60 % as % of NPLs 308 294 110 97 94 Past Due Loans (30 - 89 Days) .45% .49% .66% .65% .68% Non-Performing Loans 26.1$ 27.9$ 96.0$ 109.9$ 115.0$ OREO 4.5 3.9 16.7 18.3 27.0 Total NPAs 30.6 31.8 112.7 128.2 142.0 Performing Classified Loans 173.6 176.3 271.7 261.9 284.0 Total Classified Assets 204.2$ 208.1$ 384.4$ 390.1$ 426.0$ as % of Tier 1 / Allowance 26 % 27 % 49 % 50 % 55 % Accruing TDRs (see page 28) 79.8$ 77.8$ 126.0$ 122.8$ 138.3$ As % of Original Principal Balance Non-Performing Loans 61.6 % 62.6 % 66.3 % 69.5 % 68.8 % OREO 41.5 31.6 45.0 39.7 36.4 Total NPAs as % of Total Assets .42 .44 1.65 1.88 2.12 as % of Loans & OREO .72 .76 2.68 3.06 3.41

Non - Performing Loans (NPLs) Inflow Trends $30.5 $20.2 $9.7 $13.2 $10.0 $0 $10 $20 $30 3Q12 4Q12 1Q13 2Q13 3Q13 Resi Constr Comm Constr Resi Mtg Comm RE Comm Consumer 26 Quarterly NPL Inflows $ in millions Total NPLs $115.0 $109.9 $96.0 $27.9 $26.1 $0 $30 $60 $90 $120 3Q12 4Q12 1Q13 2Q13 3Q13 Single Customer $ in millions

Performing Classified Loans 27 $ in millions BY CATEGORY 3Q12 4Q12 1Q13 2Q13 3Q13 Commercial: Commercial & Industrial 19$ 18$ 20$ 11$ 10$ Owner Occupied 77 65 71 43 40 Total C & I 96 83 91 54 50 Income Producing CRE 49 53 57 36 36 Commercial Constr 27 19 18 16 17 Total Commercial 172 155 166 106 103 Residential Mortgage 73 65 64 51 53 Residential Construction 35 38 38 17 16 Consumer / Installment 3 4 3 2 2 Total Performing Classified 283$ 262$ 271$ 176$ 174$ Classified to Tier 1 + ALL 55% 50% 49% 27% 26% $282.5 $261.9 $271.7 $176.3 $173.6 $170 $220 $270 $320 3Q12 4Q12 1Q13 2Q13 3Q13

$138.3 $122.8 $126.0 $77.8 $79.8 $ - $50 $100 $150 $200 3Q12 4Q12 1Q13 2Q13 3Q13 TDRs 28 LOAN TYPE 3Q13 vs. 3Q12 3Q13 vs. 3Q12 3Q13 vs. 2Q12 Commercial (Sec by RE) 40.7$ 72.0$ 2.5$ 8.5$ 43.2$ 80.6$ Commercial & Industrial 2.9 7.0 - .2 2.9 7.2 Commercial Construction 12.8 24.0 - 11.9 12.8 35.9 Total Commercial 56.4 103.0 2.5 20.6 58.9 123.6 Residential Mortgage 15.6 16.0 2.3 1.4 17.9 17.5 Residential Construction 7.7 18.9 2.6 5.9 10.3 24.8 Consumer Installment .1 .3 .1 .1 .2 .4 Total 79.8$ 138.3$ 7.5$ 28.0$ 87.3$ 166.3$ Accruing (1) Non-Accruing Total TDRs $ in millions Accruing TDRs (1) 77.56 percent of accruing TDR loans have an interest rate of 4 percent or greater Accruing TDR past due 30 – 89 days – 1.44% 25.81% of accruing TDRs are pass credits

Net Charge - offs by Category & Market 29 $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 2Q13 1Q13 4Q12 3Q12 Commercial (Sec. by RE): Owner Occupied 1,641$ .58 % 5.85 % .69 % 1.76 % 3.56 % Income Producing 216 .14 5.45 1.99 .67 .70 Total Comm (Sec. by RE) 1,857 .49 5.70 1.18 1.35 1.79 Commercial & Industrial 136 .12 13.91 1.34 .12 (.23) Commercial Construction 133 .39 17.53 (.01) 4.25 7.74 Total Commercial 2,126 .36 7.96 1.14 1.30 1.81 2.52 Residential Mortgage 693 .31 2.52 .79 1.55 1.40 Home Equity LOC 382 .37 1.04 .53 .49 .80 Residential Construction 1,072 1.31 20.91 3.22 2.52 5.69 Consumer/ Installment 200 .28 .10 1.35 1.10 .78 Total Net Charge-offs 4,473$ .42 6.87 1.21 1.39 1.99 NET CHARGE-OFFS BY MARKET North Georgia 2,090$ .66 % 17.20 % 1.45 % 1.29 % 1.84 % Atlanta MSA 1,013 .33 3.21 1.07 1.27 3.02 North Carolina 704 .49 1.36 1.59 1.39 1.15 Coastal Georgia 139 .14 .49 .85 .60 2.67 Gainesville MSA 97 .15 .19 .67 2.04 .45 East Tennessee 359 .51 1.01 .98 2.98 .45 South Carolina - - - - - - Other (Indirect Auto) 71 .17 .24 .39 .19 - 3Q13 % of Average Loans (Annualized)

$142.0 $128.2 $112.7 $31.8 $30.6 $0 $50 $100 $150 3Q12 4Q12* 1Q13 2Q13 3Q13 Non - Performing Loans Foreclosed Properties (OREO) NPAs by Loan Category & Market 30 NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 6,358$ 591$ 6,949$ Owner Occupied 14,140$ 7,170$ 21,310$ Income Producing 1,657 139 1,796 Income Producing 11,756 1,597 13,353 Commercial & Industrial 609 - 609 Commercial & Industrial 32,678 - 32,678 Commercial Construction 343 376 719 Commercial Construction 18,590 3,121 21,711 Total Commercial 8,967 1,106 10,073 Total Commercial 77,164 11,888 89,052 Residential Mortgage 11,335 1,679 13,014 Residential Mortgage 13,996 6,031 20,027 HELOC 1,169 475 1,644 Residential Construction 4,097 1,207 5,304 Residential Construction 22,935 9,039 31,974 Consumer/ Installment 520 - 520 Consumer/ Installment 906 - 906 Total 26,088$ 4,467$ 30,555$ Total 115,001$ 26,958$ 141,959$ MARKET MARKET Gainesville 1,036$ -$ 1,036$ Gainesville 840$ 1,328$ 2,168$ Coastal Georgia 995 928 1,923 Coastal Georgia 6,822 864 7,686 East Tennessee 1,629 25 1,654 East Tennessee 4,157 1,487 5,644 North Carolina 5,680 762 6,442 North Carolina 9,622 2,771 12,393 Atlanta MSA 3,096 1,026 4,122 Atlanta MSA 21,349 5,926 27,275 North Georgia 13,652 1,726 15,378 North Georgia 72,211 14,582 86,793 3Q13 3Q12 *NPAs to total assets – .42% / Allowance to loans at 1.88% Non Performing Assets $ in thousands $ in millions

APPENDIX United Community Banks, Inc. 31

Experienced Proven Leadership 32 Jimmy C. Tallent President & CEO Joined 1984 H. Lynn Harton Chief Operating Officer Joined 2012 Rex S. Schuette EVP & CFO Joined 2001 David P. Shearrow EVP & CRO Joined 2007 Bill M. Gilbert Director of Banking Joined 2000 Timothy K. Schools Chief Strategy Officer Joined 2011 • Over 39 years in banking • Led company from $42 million in assets in 1989 to $7.2 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 30 years in banking • Responsible for overall operations • Former Consultant and Special Assistant to the CEO and EVP of Commercial Banking for TD Bank Financial Group; and President & CEO of The South Financial Group • Over 35 years in banking • Responsible for accounting, finance and reporting activities, M&A, and investor relations • Former CAO and Controller for State Street Corporation • Former ABA Accounting Committee Chairman • Over 30 years in banking • Responsible for Risk Management and Credit Risk Administration; Co - Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 35 years in banking • Responsible for 27 community banks with 103 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 20 years in financial services and banking • Responsible for strategic planning and implementation • Former President of American Savings Bank; and CFO & CRO of The South Financial Group

Market Share Opportunities & Demographics 33 Population Actual Projected Markets 1 (in thousands) 2010 - 2012 2012 - 2017 Atlanta, GA MSA 5,365 2% 5% East Tennessee 868 2 4 Greenville-Mauldin-Easley, SC MSA 651 2 6 Western North Carolina 446 2 4 Coastal Georgia 390 2 7 North Georgia 387 1 2 Gainesville, GA MSA 182 1 6 Total Markets Georgia 9,858 2 5 North Carolina 9,759 2 6 Tennessee 6,452 2 4 South Carolina 4,740 2 6 United States 313,129 1 3 ¹ Population data is for 2012 and includes those markets where United takes deposits. No deposits in SC. Data Source: SNL Population Growth (%) FAST GROWING MARKETS North Georgia $ 6.4 $ 2.2 11 22 34% 1 Western North Carolina 10.9 .9 1 20 8 3 Gainesville MSA 2.7 .3 1 5 12 4 Atlanta MSA 54.4 2.1 10 36 4 7 Coastal Georgia 7.0 .3 2 8 4 7 East Tennessee 15.6 .3 2 8 2 8 Total Markets $ 97.0 $ 6.1 27 99 ¹ FDIC deposit market share and rank as of 6/13 for markets where United takes deposits. Data Source: SNL and FDIC. 2 Based on current quarter. 3 Excludes four loan production offices EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1) Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1) “ Change is not a threat, it’s an opportunity . Survival is not the goal, transformative success is.” - Seth Godin

LOANS / DEPOSITS WHOLESALE BORROWINGS Liquidity 34 $ in millions 3Q13 2Q13 3Q12 vs 3Q12 Loans 4,267$ 4,189$ 4,138$ 78$ 129$ Core (DDA, MMDA, Savings) 3,416$ 3,322$ 3,138$ 94$ 278$ Public Funds 765 707 644 58 121 CD's 1,513 1,608 1,817 (95) (304) Total Deposits (excl Brokered) 5,694$ 5,637$ 5,599$ 57$ 95$ Loan to Deposit Ratio 75% 74% 74% Investment Securities: Available for Sale-Fixed 1,138$ 1,120$ 1,002$ 18$ 136$ -Floating 825 817 760 8 65 Held to Maturity -Fixed 197 197 239 - (42) -Floating 9 18 24 (9) (15) Total Investment Securities 2,169 2,152 2,025 17 144 Percent of Assets (Excludes Floating) 18% 18% 19% vs 2Q13 Variance Unused Capacity 3Q13 2Q13 3Q12 vs 2Q13 vs 3Q12 Wholesale Borrowings Brokered Deposits 1,372$ (1) 419$ 375$ 223$ 44$ 196$ FHLB 1,110 - 70 50 (70) (50) Fed Funds 598 - - - - - Other Wholesale - 54 54 53 - 1 Total 3,080$ 473$ 499$ 326$ (26)$ 147$ Long-Term Debt Senior Debt 75$ 35$ -$ 40$ 75$ Sub-Debt - 35 65 (35) (65) Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 130$ 125$ 120$ 5$ 10$ (1) Estimated Brokered Deposit Total Capacity at 25% of Assets Variance

Business Mix – Deposits at quarter - end 35 $ in millions 3Q13 vs. DEPOSITS BY CATEGORY 3Q13 2Q13 1Q13 4Q12 3Q12 3Q12 Demand & Now 1,979$ 1,916$ 1,894$ 1,841$ 1,796$ 183$ MMDA & Savings 1,437 1,406 1,401 1,372 1,342 95 Core Transaction Deposits 3,416 3,322 3,295 3,213 3,138 278 Time < $100,000 920 977 1,014 1,050 1,118 (198) Time ≥ $100,000 < $250,000 473 512 528 547 598 (125) Public Deposits 734 674 700 739 612 122 Total Core Deposits 5,543 5,485 5,537 5,549 5,466 77 Time ≥ $250,000 120 120 125 127 101 19 Public Deposits 31 32 32 31 32 (1) Total Customer Deposits 5,694 5,637 5,694 5,707 5,599 95 Brokered Deposits 419 375 332 245 224 195 Total Deposits 6,113$ 6,012$ 6,026$ 5,952$ 5,823$ 290$

Core Transaction Deposits 36 $1,310 $923 $578 $217 $214 $174 $1,271 $886 $567 $212 $211 $175 $0 $200 $400 $600 $800 $1,000 $1,200 Atlanta MSA North Georgia North Carolina Gainesville MSA Coastal Georgia East Tennessee 2Q13 3Q13 Core Transactions / Total Deposits % 2Q13 Coastal GA 68.1 % 67.6 % Gainesville MSA 68.8 67.0 North Carolina 63.0 62.6 Atlanta MSA 62.2 62.1 East TN 63.8 61.5 North Georgia 52.2 50.0 Total 60.0 % 58.9 % 3Q13 $ in millions

Lending & Credit Environment 37 Regional Credit Review – Standard Underwriting • House Lending Limit 25 • Project Lending Limit 15 • Top 25 Relationships 351 PROACTIVELY ADDRESSING CREDIT ENVIRONMENT STRUCTURE PROCESS POLICY • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement x Weekly past due meetings x Weekly NPA/ORE meetings x Quarterly criticized watch loan review meetings x Quarterly pass commercial and CRE portfolio review meetings • Ongoing enhancements to credit policy • Periodic updates to portfolio limits $ in millions

Commercial Construction & Real Estate 38 Amount Percent Land Develop - Vacant (Improved) 56.0$ 41 % Raw Land - Vacant (Unimproved) 36.0 26 Commercial Land Development 16.0 11 Churches 9.0 6 Hotels / Motels 5.0 4 Office Buildings 4.0 3 Warehouse 4.0 3 Retail Building 3.0 2 Mfg Facility 2.0 1 Miscellaneous 2.0 1 Franchise / Restaurants 1.0 1 Carwash 1.0 1 Total Commercial Construction 139.0$ 30-Sep-13 COMMERCIAL CONSTRUCTION $ in millions Owner Occupied Income Producing Total Percent Office Buildings 301.9$ 167.7$ 469.6$ 26.95 % Retail 106.4 120.9 227.3 13.05 Small Warehouses / Storage 124.7 58.0 182.7 10.48 Churches 137.7 - 137.7 7.90 Other Properties 79.1 34.2 113.3 6.50 Convenience Stores 92.1 16.5 108.6 6.23 Hotels / Motels - 84.5 84.5 4.85 Franchise / Restaurants 37.7 31.5 69.2 3.97 Multi-Residential / Other Properties - 58.4 58.4 3.35 Farmland 55.7 - 55.7 3.19 Manufacturing Facility 48.9 5.8 54.7 3.14 Leasehold Property 17.2 13.1 30.3 1.74 Golf Course / Recreation 29.5 - 29.5 1.69 Auto Dealership / Service 17.9 9.0 26.9 1.54 Automotive Service 18.7 .1 18.8 1.08 Daycare Facility 11.4 7.1 18.5 1.06 Funeral Home 15.7 .6 16.3 0.94 Carwash 16.1 - 16.1 0.92 Marina 9.1 - 9.1 0.52 Mobile Home Parks - 5.9 5.9 0.34 Movie Theater / Bowling Recreation 4.9 - 4.9 0.28 Assisted Living / Nursing Home 4.8 - 4.8 0.28 Total Commercial Real Estate 1,129.4$ 613.4$ 1,742.8$ 30-Sep-13 COMMERCIAL REAL ESTATE Average Loan Size ($ in thousands) • Commercial Construction $375 • Commercial RE: • Composite CRE 463 • Owner Occupied 431 • Income Producing 589 Commercial RE Characteristics • 64.8% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $15 million project limit

Loans by Business Mix and Region 39 $ in millions 3Q13 2Q13 1Q13 4Q12 3Q12 3Q13 vs. 3Q12 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 457$ 437$ 454$ 458$ 460$ (3)$ Owner Occ'd 1,129 1,119 1,130 1,131 1,126 3 Total C & I 1,586 1,556 1,584 1,589 1,586 - Income Prod CRE 614 629 674 682 693 (79) Comm Constr 137 133 152 155 161 (24) Total Comm 2,337 2,318 2,410 2,426 2,440 (103) Resi Mortgage 1,309 1,278 1,246 1,214 1,174 135 Resi Constr 318 332 372 382 389 (71) Consum / Install 303 261 166 153 135 168 Total Loans 4,267$ 4,189$ 4,194$ 4,175$ 4,138$ 129$ 3Q13 2Q13 1Q13 4Q12 3Q12 3Q13 vs. 3Q12 QUARTERLY LOANS - BY REGION North Georgia 1,262$ 1,265$ 1,363$ 1,364$ 1,382$ (120)$ Atlanta MSA 1,246 1,227 1,262 1,250 1,238 8 North Carolina 575 576 575 579 579 (4) Coastal Georgia 421 397 398 400 380 41 Gainesville MSA 253 256 259 261 256 (3) East Tennessee 277 282 282 283 283 (6) South Carolina 47 34 - - - 47 Other (Ind. Auto) 186 152 55 38 20 166 Total Loans 4,267$ 4,189$ 4,194$ 4,175$ 4,138$ 129$ 2012 2011 2010 2009 2008 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 458$ 428$ 441$ 390$ 410$ Owner Occ'd 1,131 1,112 980 963 956 Total C & I 1,589 1,540 1,421 1,353 1,366 Income Prod CRE 682 710 781 816 671 Comm Constr 155 164 297 363 500 Total Comm 2,426 2,414 2,499 2,532 2,537 Resi Mortgage 1,214 1,135 1,279 1,427 1,526 Resi Constr 382 448 695 1,050 1,479 Consum / Install 153 113 131 142 163 Total Loans 4,175$ 4,110$ 4,604$ 5,151$ 5,705$ 2012 2011 2010 2009 2008 ANNUAL LOANS - BY REGION North Georgia 1,364$ 1,426$ 1,689$ 1,884$ 2,040$ Atlanta MSA 1,250 1,220 1,310 1,435 1,706 North Carolina 579 597 702 772 810 Coastal Georgia 400 346 335 405 464 Gainesville MSA 261 265 312 390 420 East Tennessee 283 256 256 265 265 South Carolina - - - - - Other (Ind. Auto) 38 - - - - Total Loans 4,175$ 4,110$ 4,604$ 5,151$ 5,705$

Non GAAP Reconciliation Tables 40 3Q13 2Q13 1Q13 4Q12 3Q12 CORE FEE REVENUE Core fee revenue 13,966$ 14,063$ 12,618$ 14,551$ 13,003$ Securities gains, net - - 116 31 - Gains from sales of low income housing tax credits - 468 - - - Hedge ineffectiveness gains (losses) (81) 369 (85) 116 608 BOLI death benefit gain 86 1,366 - - - Mark to market on deferred compensation plan assets 173 46 177 63 153 Fee revenue (GAAP) 14,144$ 16,312$ 12,826$ 14,761$ 13,764$ CORE OPERATING EXPENSE Core operating expense 39,325$ 42,067$ 40,900$ 41,489$ 40,523$ Foreclosed property expense 194 5,151 2,333 4,611 3,706 Severance 405 1,559 360 563 401 Provision for litigation settlement - - - 4,000 - Mark to market on deferred compensation plan liability 173 46 177 63 153 Operating expense (GAAP) 40,097$ 48,823$ 43,770$ 50,726$ 44,783$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 9.02 % 6.30 % 5.66 % 5.67 % 5.73 % Effect of preferred equity 2.74 2.83 2.87 2.88 2.93 Tangible equity to tangible assets 11.76 9.13 8.53 8.55 8.66 Effect of goodwill and other intangibles .04 .06 .07 .08 .09 Equity to assets (GAAP) 11.80 % 9.19 % 8.60 % 8.63 % 8.75 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 13.34 % 13.16 % 8.45 % 8.26 % 8.44 % Effect of preferred equity 4.01 4.11 4.22 4.24 4.29 Tangible equity to risk weighted assets 17.35 17.27 12.67 12.50 12.73 Effect of deferred tax limitation (4.72) (4.99) - - - Effect of other comprehensive income .49 .29 .49 .51 .36 Effect of trust preferred 1.09 1.11 1.15 1.15 1.17 Tier I capital ratio (Regulatory) 14.21 % 13.68 % 14.31 % 14.16 % 14.26 % Operating Earnings to GAAP Earnings Reconciliation $ in thousands