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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 $15.4 MILLION FOR FIRST QUARTER 2014

 

• Earnings per diluted share of 25 cents, up 14 percent from fourth quarter
• Loans up $27 million, or 2 percent annualized
• Core transaction deposits up $135 million, or 16 percent annualized
• All preferred stock redeemed
• All capital ratios remain strong

 

 

BLAIRSVILLE, GA – April 24, 2014 – United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today reported net income of $15.4 million, or 25 cents per diluted share, for the first quarter of 2014. Earnings per share were up 14 percent from the fourth quarter, and 67 percent from the first quarter of 2013, reflecting a reduction in preferred stock dividends, reduced operating costs and a lower provision for loan losses.

 

“I am pleased with our first quarter progress and our outlook for the balance of 2014,” said Jimmy Tallent, president and chief executive officer. “We achieved steady loan growth and strong deposit growth, while controlling expenses.

 

“I am especially pleased that we redeemed the remaining $122 million in preferred stock, completing the final phase of our TARP and other preferred stock redemptions during the first quarter,” Tallent continued. “In total we redeemed $197 million in preferred stock, including $75 million in the fourth quarter, without issuing common equity that would have been dilutive to shareholders.

 

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“The elimination of expensive preferred stock dividends had a positive impact on first quarter per share results,” Tallent added. “Longer-term, it will benefit our performance and the ability to execute our strategic plan.”

 

The first quarter provision for credit losses was $2.5 million, down $500,000 from the fourth quarter and down $8.5 million from the first quarter of 2013. First quarter net charge-offs were $4.04 million, compared with $4.44 million in the fourth quarter and $12.4 million a year ago. Nonperforming assets at quarter-end were $30.8 million, representing .42 percent of total assets. This was down slightly from the fourth quarter and down significantly from $112.7 million, or 1.65 percent of total assets, in the first quarter of 2013.

 

First quarter taxable equivalent net interest revenue totaled $54.2 million, down $1.71 million from the fourth quarter and down $405,000 from the first quarter of 2013. The first quarter taxable equivalent net interest margin was 3.21 percent, down five basis points from the fourth quarter and down 16 basis points from a year ago.

 

“The decline in net interest revenue was related primarily to two fewer days of interest accruals in the first quarter,” said Tallent. “Competitive loan pricing pressures continue, and we are sharply focused on growing loans and deposits to offset the impact and grow net interest revenue. We also remain committed to prudent interest rate risk management. To that end, 39 percent of our investment portfolio consists of floating-rate securities, compared with 41 percent at year-end 2013 and 34 percent in the first quarter of 2013.”

 

First quarter fee revenue totaled $12.2 million, down $1.34 million from the fourth quarter and $735,000 from a year earlier, primarily due to lower mortgage fees and lower customer swap fees in other fee revenue. Additionally, fourth quarter fee revenue included the recognition of $300,000 in gains on mutual fund investments. First quarter mortgage fees were down $359,000 from the fourth quarter and down $1.3 million from a year ago, reflecting slower mortgage refinancing activity related to rising long-term interest rates. Closed mortgage loans totaled $46 million in the first quarter, compared with $55.5 million in the fourth quarter and $70 million in the first quarter of 2013.

 

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Operating expenses, excluding foreclosed property costs, were $38.9 million in the first quarter compared to $41.4 million in the fourth quarter of 2013 and $41.4 million a year ago. Expenses decreased in every category from fourth quarter totals, reflecting successful efforts to control operating costs. The most significant quarter-to-quarter decreases were $675,000 in professional fees and $451,000 in FDIC assessments and other regulatory charges, reflecting United’s improved credit quality. Salaries and employee benefits decreased $421,000, in part reflecting incentive compensation accrued in the fourth quarter for achievement of the 2013 performance targets.

 

Foreclosed property costs were $116,000 in the first quarter compared to $191,000 in the fourth quarter and $2.33 million a year ago. These costs have remained lower following the accelerated sales of classified assets in the second quarter of 2013.

 

On March 31, 2014, capital ratios were as follows: Tier 1 Risk-Based of 11.1 percent; Total Risk-Based of 12.3 percent; Tier 1 Common Risk-Based of 10.0 percent; Tier 1 Leverage of 8.0 percent; and Tangible Equity-to-Assets of 9.5 percent.

 

“We made good progress in the first quarter,” Tallent said. “A year ago our focus was resolving legacy credit-related problems, a major undertaking that has been completed. Other challenges have remained with regard to interest rates and the economic environment. But our team has kept expenses down and strengthened the business pipeline, and we have strategically added people and initiatives to drive revenue growth. Of particular note are the additions of senior talent to lead our Tennessee region, our specialized lending group, and our structured finance area. I believe we are on track to achieve our business targets and financial goals for the year.”

 

Conference Call

United will hold a conference call today, Thursday, April 24, 2014, at 11 a.m. ET to discuss the contents of this news release and to share business highlights for the quarter. To access the call, dial (877) 380-5665 and use the conference number 24926399. The conference call also will be webcast and can be accessed by selecting ‘Calendar of Events’ within the Investor Relations section of United’s website at www.ucbi.com.

 

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About United Community Banks, Inc.

United Community Banks, Inc. (UCBI) is a bank holding company based in Blairsville, Georgia, with $7.4 billion in assets. The company's banking subsidiary, United Community Bank, is one of the Southeast region's largest full-service banks, operating 102 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking services including mortgage, advisory and treasury management products. United Community Bank is consistently recognized for its outstanding customer service by national survey organizations. Additional information about the company and the bank's full range of products and services can be found at www.ucbi.com.

 

Safe Harbor

This news release contains forward-looking statements, as defined by federal securities laws, including statements about United’s financial outlook and business environment. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some of the risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to United’s filings with the Securities and Exchange Commission including its 2013 Annual Report on Form 10-K under the sections entitled “Forward-Looking Statements” and “Risk Factors.” Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements.

 

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United Community Banks, Inc. First Quarter 2014 Investor Presentation

2 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 2013 Annual Report on Form 10 - K and its most recent quarterly report on Form 10 - Q 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 . 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 they are 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 .

3 United at a Glance Founded in 1950 Third - largest bank holding company headquartered in Georgia with 1,488 employees Key Statistics as of 3/31/14 (in billions) Assets Deposits Loans $7.40 $6.25 $4.36 Deposit Market Share (1) Market Offices Deposit Market Share Rank No. Georgia 22 34% 1 Atlanta MSA 36 4 6 Gainesville 5 12 4 Coastal Georgia 8 4 7 W. North Carolina 19 13 3 E. Tennessee 8 2 8 (1) FDIC deposit market share and rank as of June 30, 2013 for markets where United takes deposits. Source: SNL and FDIC. Excludes 3 Loan Production Offices in Georgia and Tennessee and one newly formed bank in Greenville, SC.

4 Footprint Savannah Nashville Greenville Asheville Atlanta Chattanooga Raleigh Charlotte Charleston Myrtle Beach Knoxville Current Footprint Blairsville Headquartered in Blairsville, Georgia with 102 locations in: Georgia; North Carolina; South Carolina; and Tennessee

5 Business and Operating Model Service is Point of Differentiation #1 in Customer Satisfaction according to Customer Service Profiles Nationally recognized customer service by well regarded market research companies Golden rule of banking – treating people the way we want to be treated “The Bank that SERVICE Built SM ” Customer surveys consistently reveal 95%+ satisfaction rate Local CEOs with deep roots in their communities Resources of a $7.4 billion bank Operates in a number of the more demographically attractive U.S. markets Organic growth supported by de novos and selective acquisitions Twenty - eight “community banks” Strategic footprint with substantial banking opportunities Disciplined growth strategy “Community bank service, large bank resources”

6 Highlights First Quarter 2014 IMPROVING QUARTERLY RESULTS 1Q14 1Q13 Net Income $15.4M $11.8M EPS $.25 $.15 ROA .85% .70% ROCE 8.64% 8.51% Solid Improvement in Credit Quality from One Year Ago Credit costs decline substantially: Provision of $2.5 million vs. $11.0 million Net charge - offs decline to .38% of total loans vs. 1.21% NPAs declined to .42 % of total assets vs. 1.65 % Allowance 1.73% of total loans vs. 2.52% Operating Efficiencies Strengthen in 2014 Efficiency ratio of 59.0%; significantly down from 65.0% a year ago FDIC costs and professional fees decline from both linked quarter and year ago Continued focus on reducing costs and improving fee revenue

7 Highlights First Quarter 2014 (Compared to a year ago) Solid Capital Ratios and Improved Debt Position Redeemed all preferred stock of $ 197 million in fourth and first quarters without issuing common stock Tier I Common to Risk Weighted Assets of 10.0%; Tangible Common to RWAs of 13.6% Tier 1 Risk Based Capital of 11.1% and Tier I Leverage of 8.0% Core Fee Revenue Challenges Lower mortgage volume and fees Offset partially by higher brokerage, interchange and service charge fees Loan Growth of 4% from a year ago Net loan growth this quarter of $27 million, or 2% annualized Driven by commercial and consumer products Continued Strong Core Transaction Deposit Growth Up $135 million in the fourth quarter or 16% annualized Up $278 million from year ago or 8% Represents 62% of total customer deposits compared to 34% at the end of 2008

8 2014 Goals Strong local leadership and senior management Funding advantage in legacy markets Consistent and attractive culture Class leading customer satisfaction Maximize employee retention HOW? LEVERAGE OUR STRENGTHS Continue to invest in and improve commercial and retail capabilities Diversify portfolio – focus on C&I; owner occupied; specialized lending for healthcare, corporate, asset based and SBA; and, con sumer lending Momentum building across footprint Invest in people; strengthen commercial and specialized lending group and markets Grow loans in mid - to - high single digits Improve retail and small business bank Grow sales – better / diversified product design, merchandising and campaign execution Streamline deliver processes that focus on how we serve our customers Increase core transaction deposits in the mid - single digits Grow net interest revenue modestly (slight margin compression through the year) Lower credit costs and trends continue at or below current levels Grow fee revenue modestly (despite weaker mortgage fees) Lower operating expenses driven by non - personnel costs

8 2014 Goals Community bank service with large bank resources Strong local leadership and senior management Funding advantage in legacy markets Consistent and attractive culture Class leading customer satisfaction HOW? LEVERAGE OUR STRENGTHS Continue to invest in and improve commercial and retail capabilities Diversify portfolio – focus on C&I; owner occupied; specialized lending for healthcare, corporate, asset based and SBA; and, con sumer lending Momentum building across footprint Invest in people; strengthen commercial and specialized lending group and markets Grow loans in mid - to - high single digits Improve retail and small business bank Grow sales – better / diversified product design, merchandising and campaign execution Streamline deliver processes that focus on how we serve our customers Increase core transaction deposits in the mid - single digits Grow net interest revenue modestly (slight margin compression through the year) Lower credit costs and trends continue at or below current levels Grow fee revenue modestly (despite weaker mortgage fees) Lower operating expenses driven by non - personnel costs

FINANCIAL REVIEW

7 Highlights First Quarter 2014 (Compared to a year ago) Solid Capital Ratios and Improved Debt Position Redeemed all preferred stock of $197 million in fourth and first quarters without issuing common stock Tier I Common to Risk Weighted Assets of 10.0%; Tangible Common to RWAs of 13.6% Tier 1 Risk Based Capital of 11.1% and Tier I Leverage of 8.0% Core Fee Revenue Challenges Lower mortgage volume and fees Offset partially by higher brokerage, interchange and service charge fees Loan Growth of 4% Net loan growth this quarter of $27 million, or 2% annualized Driven by commercial and consumer products Continued Strong Core Transaction Deposit Growth Up $135 million in the fourth quarter or 16% annualized Up $278 million from year ago or 8% Represents 62% of total customer deposits compared to 34% at the end of 2008

12 Core Operating Expenses (1) Includes foreclosed property costs, severance, and gains and losses on deferred compensation plan liabilities. $ in thousands 1Q14 4Q13 1Q13 Salaries & Employee Benefits 24,211$ (376)$ 1,156$ Communications & Equipment 3,239 (175) 193 Occupancy 3,378 (357) 11 FDIC Assessment 1,353 (451) (1,152) Advertising & Public Relations 626 (155) (312) Postage, Printing & Supplies 776 (106) (87) Professional Fees 1,427 (675) (939) Other Expense 3,739 (149) (1,021) Core Operating Expenses 38,749 (2,444) (2,151) Non-Core (1) 301 (120) (2,569) Reported GAAP 39,050$ (2,564)$ (4,720)$ Efficiency Ratio 59.1 % (1.0) % (5.9) % Variance - Increase / (Decrease)

13 Key Drivers of Net Interest Revenue / Margin Net Interest Revenue 1Q growth impacted by: Net loan growth Higher securities yield Offset partially by loan pricing competition Two fewer days vs. 4Q $ in millions KEY DRIVERS OF NIR NET INTEREST REVENUE & MARGIN Loan / Securities Pricing Deposit Pricing (excl. brokered) Loan Yields Securities Yields Avg Rate on Int Bearing Dep’s • CD pricing reflects the quarter - average new and renewed yield • MMDA / NOW pricing reflects the deposit yield for each quarter CDs MMDA NOW

14 Net Income $ in thousands NET OPERATING INCOME 1Q14 4Q13 1Q14 Core Earnings (Pre-Tax, Pre-Credit) 27,350$ (555)$ 1,058$ Provision for Loan Loss 2,500 (500) (8,500) NON-CORE FEE REVENUE: Securities Gains (Losses) 217 147 101 Gains (Losses) on Deferred Compensation Plan Assets 29 (201) (148) Total Non-Core Fee Revenue 246 (54) (47) NON-CORE OPERATING EXPENSES: Foreclosed Property Write Downs 277 (49) (764) Foreclosed Property (Gains) Losses on Sales (521) 240 (626) Forclosed Property Maintenance Expenses 360 (266) (827) Severance Costs 156 156 (204) Gains (Losses) on Deferred Comp Plan Liability 29 (201) (148) Total Non-Core Operating Expenses 301 (120) (2,569) Income Tax Expense 9,395 522 8,445 Net Income 15,400$ (511)$ 3,635$ Preferred Stock Dividends 439 (2,473) (2,613) Net Income Avail to Common Shareholders 14,961$ 1,962$ 6,248$ Net Income Per Share .25$ .03$ .10$ Tangible Book Value 11.63$ .37$ 4.87$ Return on Assets .85 % (.01) % .15 % Return on Common Equity 8.64 1.12 .13 Variance - Increase / (Decrease) 60.1 M Shares Outstanding Quarterly Net Income $ in millions 1Q14 $15.4 4Q13 15.9 3Q13 15.5 2Q13 230.0 1Q13 11.8

15 Customer Deposit Mix & Core Growth $ in thousands Time >$100M 9% Demand & NOW 36% Deposits by % / Customer Mix Public Funds 15% Time <$100M 14% MMDA & Sav 26% Time >$100M 22% Demand & NOW 23% Public Funds 14% Time <$100M 31% MMDA & Sav 10% 1Q14 $5.8B 62%* 2Q08 $6.2B 34%* 1Q14 4Q13 1Q13 4Q08 Demand / NOW 2,073$ 1,969$ 1,894$ 1,457$ MMDA / Savings 1,499 1,468 1,400 630 Core Transaction 3,572 3,437 3,294 2,087 Time < $100,000 828 888 1,014 1,945 Public Deposits 804 863 701 755 Total Core 5,204 5,188 5,009 4,787 Time >$100,000 539 557 653 1,336 Public Deposits 34 32 32 87 Total Customer 5,777 5,777 5,694 6,210 Brokered Deposits 471 425 332 793 Total Deposits 6,248$ 6,202$ 6,026$ 7,003$ Total Deposit Mix Core Deposit Growth – Category & Market CATEGORY 1Q14 MARKET 1Q14 Demand 96$ Atlanta 60$ MM Accounts 11 N. Georgia 46 Savings 20 North Carolina (1) NOW 8 Coastal Georgia 15 Total Categories 135$ Tennessee 2 Gainesville 11 Growth (Annualized) 16 % South Carolina 2 135$ Growth Growth *% of core transaction customer deposits Significant growth in core transaction deposits since 4Q08

16 Capital Ratios Holding Company Well- Cap 1Q14 4Q13 3Q13 2Q13 1Q13 Tier I RBC 6 % 11.1 % 12.7 % 14.2 % 13.7 % 14.3 % Total RBC 10 12.3 14.0 15.5 15.2 15.9 Leverage 5 8.0 9.1 10.0 9.8 9.7 Tier 1 Common RBC 10.0 9.3 9.0 8.5 8.9 Tangible Common to Assets 9.2 9.0 9.0 6.3 5.7 Tangible Equity to Assets 9.5 11.6 11.8 9.1 8.5 Bank Well- Cap 1Q14 4Q13 3Q13 2Q13 1Q13 Tier 1 RBC 6 % 12.6 % 13.5 % 14.5 % 14.2 % 14.7 % Total RBC 10 13.9 14.8 15.7 15.5 16.0 Leverage 5 9.1 9.6 10.2 10.1 10.0

LOAN PORTFOLIO & CREDIT QUALITY

18 Loan Portfolio (total $4.36 billion) Diversifying Portfolio Geographic Diversity Residential Mortgage 30% $1.31 Period $ in Billions 1Q14 $4.356 4Q13 $4.329 3Q13 $4.267 2Q13 $4.189 1Q13 $4.194 By Loan Type 1Q11 $4.194 1Q14 $4.356 Reduced concentrations of A&D and Investor RE loans 6% 6% 10% 13% 27% 30% Total Loans Loan Diversification & Type • Reducing land exposure • Focus on small business, C&I, and specialized lending • Enhanced retail products 3% 5% $ in billions

19 New Loans Funded and Advances (1) $ in millions CATEGORY 1Q14 1Q13 1Q14 1Q13 Commercial C & I 74.7$ 40.1$ Atlanta 86.1$ 90.7$ Owner Occupied CRE 48.9 57.9 Coastal Georgia 31.1 18.1 Income Producing CRE 41.1 14.5 N. Georgia 41.3 66.1 Commercial Constr. 1.9 1.6 North Carolina 16.9 32.2 Total Commercial 166.6 114.1 Tennessee 9.6 21.7 Residential Mortgage 15.2 56.1 Gainesville 8.9 26.1 Residential HELOC 30.1 40.4 South Carolina 60.3 - Residential Construction 29.6 30.0 Other (Indirect Auto) 33.3 19.6 Consumer 46.0 33.9 Total Markets 287.5$ 274.5$ Total Categories 287.5$ 274.5$ New Loans Funded and Advances MARKET (1) Represents new loans funded and net loan advances (net of payments on lines of credit)

20 Commercial Loans (total $2.41 billion) $ in billions Geographic Diversity Income Producing 26% $.62B C & I 21% $.50B 5% 7% 7% 13% 23% 40% Average Loan Size Type $ in Thousands Owner Occup’d $630 Income Prod 748 C & I 138 Comm Constr 524 By Loan Type 5%

21 Retail (total $1.63 billion) Geographic Diversity Home Equity LOC 27% $.447B Avg loan size $56 thousand 0% 7% 8% 16% 20% 32% By Loan Type Mortgage 53% $.867B Avg loan size $101 thousand 4% 13% $ in billions Success with new portfolio products and HELOCs Conservative underwriting 62.7% of HE Primary Lien

22 Residential Construction (total $318 million) $ in millions Geographic Diversity Raw 12% $37 Lot 50% $159 3% 4% 5% 21% 22% 45% By Loan Type Developing 12% $37 1Q14 4Q13 3Q13 2Q13 1Q13 1Q14 vs. 1Q13 TOTAL COMPANY Land Loans Developing 37$ 39$ 40$ 42$ 57$ (20)$ Raw 37 38 35 36 42 (5) Lot 159 166 167 173 188 (29) Total 233 243 242 251 287 (54) Construction Loans Spec 19 23 30 34 40 (21) Sold 66 62 46 47 45 21 Total 85 85 76 81 85 - Total 318$ 328$ 318$ 332$ 372$ (54)$

23 Credit Quality $ in millions 1Q14 4Q13 3Q13 2Q13 1Q13 Net Charge-offs 4.0$ 4.4$ 4.5$ 72.4$ 12.4$ as % of Average Loans .38 % .41 % .42 % 6.87 % 1.21 % Allowance for Loan Losses 75.2$ 76.8$ 80.4$ 81.8$ 105.8$ as % of Total Loans 1.73 % 1.77 % 1.88 % 1.95 % 2.52 % as % of NPLs 301 286 308 294 110 Past Due Loans (30 - 89 Days) .40% .58% .45% .49% .66% Non-Performing Loans 25.2$ 26.8$ 26.1$ 27.9$ 96.0$ OREO 5.6 4.2 4.5 3.9 16.7 Total NPAs 30.8 31.0 30.6 31.8 112.7 Performing Classified Loans 164.2 172.7 173.6 176.3 271.7 Total Classified Assets 195.0$ 203.7$ 204.2$ 208.1$ 384.4$ as % of Tier 1 / Allowance 27 % 27 % 26 % 27 % 49 % Accruing TDRs (see page 26) 77.9$ 78.7$ 79.8$ 77.8$ 126.0$ As % of Original Principal Balance Non-Performing Loans 65.8 % 65.3 % 61.6 % 62.6 % 66.3 % OREO 53.9 44.5 41.5 31.6 45.0 Total NPAs as % of Total Assets .42 .42 .42 .44 1.65 as % of Loans & OREO .71 .72 .72 .76 2.68

24 Non - Performing Loans (NPLs) Inflow Trends $ in millions Quarterly NPL Inflows Total NPLs

25 Performing Classified Loans $ in millions 1Q13 2Q13 3Q13 4Q13 1Q14 Commercial: Commercial & Industrial 20$ 11$ 10$ 9$ 8$ Owner Occupied 71 43 40 43 48 Total C & I 91 54 50 52 56 Income Producing CRE 57 36 36 34 37 Commercial Construction 18 16 17 17 5 Total Commercial 166 106 103 104 98 Residential Mortgage 64 51 53 52 51 Residential Construction 38 17 16 14 13 Consumer / Installment 3 2 2 3 2 Total Performing Classified 271$ 176$ 174$ 173$ 164$ Classified to Tier 1 + ALL 49% 27% 26% 27% 27% By Category

26 TDRs $ in millions LOAN TYPE 1Q14 vs. 1Q13 1Q14 vs. 1Q13 1Q14 vs. 1Q13 Commercial (Sec by RE) 38.9$ 65.7$ 2.1$ 9.0$ 41.0$ 74.7$ Commercial & Industrial 3.2 8.6 .1 .2 3.3 8.8 Commercial Construction 11.5 15.8 .1 16.8 11.6 32.6 Total Commercial 53.6 90.1 2.3 26.0 55.9 116.1 Residential Mortgage 16.6 16.8 3.6 2.2 20.2 19.0 Residential Construction 7.4 18.9 2.1 4.5 9.5 23.4 Consumer Installment .3 .2 - .1 .3 .3 Total 77.9$ 126.0$ 8.0$ 32.8$ 85.9$ 158.8$ Accruing (1) Non-Accruing Total TDRs Accruing TDRs TDR credit quality improving Accruing TDR past due 30 – 89 days = 1.3% 42% of accruing TDRs are pass credits (1) 61.02 percent of accruing TDR loans have an interest rate of 4 percent or greater

27 Net Charge - offs by Category & Market $ in thousands NET CHARGE-OFFS BY CATEGORY Total % of Avg Loans 4Q13 3Q13 2Q13 1Q13 Commercial (Sec. by RE): Owner Occupied 278$ .10 % .57 % .58 % 5.85 % .69 % Income Producing 205 .13 .21 .14 5.45 1.99 Total Comm (Sec. by RE) 483 .11 .44 .49 5.70 1.18 Commercial & Industrial 421 .35 (.13) .12 13.91 1.34 Commercial Construction - - (.02) .39 17.53 (.01) Total Commercial 904 .15 .30 .36 7.96 1.14 - 2.52 Residential Mortgage 1,515 .70 .64 .31 2.52 .79 Home Equity LOC 993 .93 .38 .37 1.04 .53 Residential Construction 212 .27 .40 1.31 20.91 3.22 Consumer/ Installment 415 .54 .62 .28 .10 1.35 Total Net Charge-offs 4,039$ .38 .41 .42 6.87 1.21 NET CHARGE-OFFS BY MARKET North Georgia 1,272$ .42 % .51 % .66 % 17.20 % 1.45 % Atlanta MSA 1,232 .39 .20 .33 3.21 1.07 North Carolina 577 .41 .76 .49 1.36 1.59 Coastal Georgia 512 .49 .33 .14 .49 .85 Gainesville MSA 141 .22 .54 .15 .19 .67 East Tennessee 239 .35 .46 .51 1.01 .98 South Carolina / Corporate - - - - - - Other (Indirect Auto) 66 .14 .20 .17 .24 .39 1Q14 % of Average Loans (Annualized)

28 NPAs by Loan Category & Market $ in thousands NPLs OREO Total NPAs NPLs OREO Total NPAs LOAN CATEGORY LOAN CATEGORY Commercial (sec. by RE): Commercial (sec. by RE): Owner Occupied 3,868$ 1,167$ 5,035$ Owner Occupied 8,142$ 4,750$ 12,892$ Income Producing 1,278 1,645 2,923 Income Producing 9,162 834 9,996 Commercial & Industrial 822 - 822 Commercial & Industrial 29,545 - 29,545 Commercial Construction 479 - 479 Commercial Construction 22,359 3,027 25,386 Total Commercial 6,447 2,812 9,259 Total Commercial 69,208 8,611 77,819 Residential Mortgage 13,307 2,146 15,453 Residential Mortgage 10,901 3,463 14,364 HELOC 1,106 362 1,468 HELOC 916 - 916 Residential Construction 3,805 274 4,079 Residential Construction 14,592 4,660 19,252 Consumer/ Installment 585 - 585 Consumer/ Installment 389 - 389 Total 25,250$ 5,594$ 30,844$ Total 96,006$ 16,734$ 112,740$ MARKET MARKET Gainesville 1,145$ -$ 1,145$ Gainesville 911$ 370$ 1,281$ Coastal Georgia 800 1,607 2,407 Coastal Georgia 3,523 1,449 4,972 East Tennessee 1,428 159 1,587 East Tennessee 2,463 2,242 4,705 North Carolina 6,501 866 7,367 North Carolina 8,519 2,533 11,052 Atlanta MSA 2,916 904 3,820 Atlanta MSA 17,380 3,524 20,904 North Georgia 12,166 2,058 14,224 North Georgia 63,210 6,616 69,826 Indirect Auto 294 - 294 1Q14 1Q13 *NPAs to total assets – .42% / Allowance to loans at 1.73% Non Performing Assets

APPENDIX

30 Experienced Proven Leadership 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 40 years in banking • Led company from $42 million in assets in 1989 to $7.4 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient • Over 31 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 36 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 31 years in banking • Responsible for Risk Management and Credit Risk Administration; Chairman of Risk Management Committee; also responsible for credit underwriting, review, policy and special assets • Former EVP & SCO for SunTrust Banks • Over 36 years in banking • Responsible for 28 community banks with 102 branch offices • Formerly of Riegel Textile Credit Union; President of Farmers and Merchants Bank • Former Georgia Board of Natural Resources Board Chairman • Over 21 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

31 Market Share Opportunities & Demographics Population Actual Projected Markets 1 (in thousands) 2010 - 2013 2013 - 2018 Atlanta, GA MSA 5,421 3% 6% East Tennessee 874 2 4 Greenville-Mauldin-Easley, SC MSA 850 3 5 Western North Carolina 449 3 3 Coastal Georgia 393 3 6 North Georgia 389 2 2 Gainesville, GA MSA 184 2 5 Total Markets Georgia 9,918 2 5 North Carolina 9,827 3 5 Tennessee 6,494 2 4 South Carolina 4,773 3 5 United States 314,468 2 4 ¹ Population data is for 2013 and includes those markets where United takes deposits. 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 2.2 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 $ 6.2 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 and full service banking office in Greenville, SC. EXCELLENT GROWTH OPPORTUNITIES Markets Banks Offices (3) Rank (1) Market Deposits (in billions) (1) United Deposits (in billions) (2,3) Deposit Share (1) “ Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared , ambition inspired, and success achieved .” - Helen Keller

32 LOANS / DEPOSITS WHOLESALE BORROWINGS Liquidity 1Q14 4Q13 1Q13 vs 1Q13 Loans 4,356$ 4,329$ 4,194$ 27$ 162$ Core (DDA, MMDA, Savings) 3,572$ 3,437$ 3,294$ 135$ 278$ Public Funds 838 895 732 (57) 106 CD's 1,367 1,445 1,668 (78) (301) Total Deposits (excl Brokered) 5,777$ 5,777$ 5,694$ -$ 83$ Loan to Deposit Ratio 75% 75% 74% Investment Securities: Available for Sale -Fixed 947$ 881$ 1,193$ 66$ (246)$ -Floating 889 951 716 (62) 173 Held to Maturity -Fixed 460 473 211 (13) 249 -Floating 6 7 21 (1) (15) Total Investment Securities 2,302 2,312 2,141 (10) 161 Floating as % of Total Securities 39% 41% 34% vs 4Q13 Variance Unused Capacity 1Q14 4Q13 1Q13 vs 4Q13 vs 1Q13 Wholesale Borrowings Brokered Deposits 1,368$ (1) 470$ 425$ 332$ 45$ 138$ FHLB 959 50 120 - (70) 50 Holding Company LOC 10 40 40 40 Fed Funds 651 30 - - 30 30 Other Wholesale - 53 53 52 - 1 Total 2,988$ 643$ 598$ 384$ 45$ 259$ Long-Term Debt Senior Debt 75$ 75$ 35$ -$ 40$ Sub-Debt - - 35 - (35) Trust Preferred Securities 55 55 55 - - Total Long-Term Debt 130$ 130$ 125$ -$ 5$ Variance $ in millions (1) Estimated brokered deposit total capacity at 25% of assets

33 Business Mix – Deposits (at quarter - end) 1Q14 vs. DEPOSITS BY CATEGORY 1Q14 4Q13 3Q13 2Q13 1Q13 1Q13 Demand & Now 2,073$ 1,969$ 1,979$ 1,916$ 1,894$ 179$ MMDA & Savings 1,499 1,468 1,437 1,406 1,401 98 Core Transaction Deposits 3,572 3,437 3,416 3,322 3,295 277 Time < $100,000 828 888 920 977 1,014 (186) Time ≥ $100,000 < $250,000 427 443 473 512 528 (101) Public Deposits 804 863 734 674 700 104 Total Core Deposits 5,631 5,631 5,543 5,485 5,537 94 Time ≥ $250,000 112 114 120 120 125 (13) Public Deposits 34 32 31 32 32 2 Total Customer Deposits 5,777 5,777 5,694 5,637 5,694 83 Brokered Deposits 471 425 419 375 332 139 Total Deposits 6,248$ 6,202$ 6,113$ 6,012$ 6,026$ 222$ $ in millions

34 Core Transaction Deposits 4Q13 South Carolina 99.0 % 99.0 % Gainesville MSA 71.0 70.2 Coastal GA 69.6 67.9 East TN 65.9 63.6 North Carolina 64.2 63.5 Atlanta MSA 65.0 61.6 North Georgia 52.7 50.4 Total 61.8 % 59.5 % 1Q14 Core Transactions / Total Deposits $ in millions

35 Lending & Credit Environment Regional Credit Review – Standard Underwriting • House Lending Limit $ 25 • Project Lending Limit 15 • Top 25 Relationships 343.8 PROACTIVELY ADDRESSING CREDIT ENVIRONMENT STRUCTURE PROCESS • Continuous external loan review • Internal loan review of new credit relationships • Intensive executive management involvement POLICY • Ongoing enhancements to credit policy • Periodic updates to portfolio limits • Centralized underwriting and approval process • Segregated work - out teams • Highly skilled ORE disposition group • Seasoned regional credit professionals 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 $ in millions

36 Commercial Construction & Real Estate Amount Percent Land Develop - Vacant (Improved) 54$ 38 % Raw Land - Vacant (Unimproved) 30 21 Commercial Land Development 16 11 Multi-Residential 13 9 Churches 8 6 Retail Building 7 5 Mfg Facility 3 2 Office Buildings 2 1 Warehouse 2 1 Carwash 2 1 Other Properties 11 5 Total Commercial Construction 148$ 31-Mar-14 COMMERCIAL CONSTRUCTION Owner Occupied Income Producing Total Percent Office Buildings 308.8$ 169.2$ 478.0$ 27.1 % Retail Building 100.7 149.0 249.7 14.1 Warehouse 124.6 58.0 182.6 10.3 Churches 139.9 - 139.9 7.9 Other Properties 94.9 37.1 132.0 7.5 Convenience Stores 88.4 17.6 106.0 6.0 Hotels / Motels - 75.6 75.6 4.3 Restaurants/Franchise Fast Food 36.1 25.5 61.6 3.5 Mfg Facility 50.0 5.5 55.5 3.1 Farmland 52.0 - 52.0 2.9 Multi-Resi Properties - 51.5 51.5 2.9 Leasehold Property 17.0 14.1 31.1 1.8 Golf Course/Country Club 25.7 - 25.7 1.5 Automotive Dealership 17.8 7.0 24.8 1.4 Automotive Service 18.1 .1 18.2 1.0 Daycare Facility 9.9 8.2 18.1 1.0 Funeral Home 14.5 .6 15.1 .9 Carwash 14.9 - 14.9 .8 Assisted Living / Nursing Home 9.6 - 9.6 .5 Marina 7.3 - 7.3 .4 Mobile Home Parks - 5.0 5.0 .3 Movie Theaters/Bowling/Rec 4.7 - 4.7 .3 Other Small Business 6.8 - 6.8 .4 Total Commercial Real Estate 1,141.7$ 624.0$ 1,765.7$ 31-Mar-14 COMMERCIAL REAL ESTATE Average Loan Size ($ in thousands) • Commercial Construction $394 • Commercial RE: • Composite CRE 471 • Owner Occupied 434 • Income Producing 617 Commercial RE Characteristics • 64.7% owner occupied • Small business, doctors, dentists, attorneys, CPAs • $15 million project limit $ in millions

37 Loans by Business Mix and Region 1Q14 4Q13 3Q13 2Q13 1Q13 1Q14 vs. 1Q13 QUARTERLY LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 495$ 472$ 457$ 437$ 454$ 41$ Owner Occ'd 1,142 1,134 1,129 1,119 1,130 12 Total C & I 1,637 1,606 1,586 1,556 1,584 53 Income Prod CRE 624 623 614 629 674 (50) Comm Constr 148 149 137 133 152 (4) Total Comm 2,409 2,378 2,337 2,318 2,410 (1) Resi Mortgage 1,313 1,316 1,309 1,278 1,246 67 Resi Constr 318 328 318 332 372 (54) Consum / Install 316 307 303 261 166 150 Total Loans 4,356$ 4,329$ 4,267$ 4,189$ 4,194$ 162$ 1Q14 4Q13 3Q13 2Q13 1Q13 1Q14 vs. 1Q13 QUARTERLY LOANS - BY REGION North Georgia 1,205$ 1,240$ 1,262$ 1,265$ 1,363$ (158)$ Atlanta MSA 1,290 1,275 1,246 1,227 1,262 28 North Carolina 563 572 575 576 575 (12) Coastal Georgia 425 423 421 397 398 27 Gainesville MSA 262 255 253 256 259 3 East Tennessee 272 280 277 282 282 (10) South Carolina 131 88 47 34 - 131 Other (Ind. Auto) 208 196 186 152 55 153 Total Loans 4,356$ 4,329$ 4,267$ 4,189$ 4,194$ 162$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BUSINESS MIX BY CATEGORY Commercial: Comm & Indus 472$ 458$ 428$ 441$ 390$ Owner Occ'd 1,134 1,131 1,112 980 963 Total C & I 1,606 1,589 1,540 1,421 1,353 Income Prod CRE 623 682 710 781 816 Comm Constr 149 155 164 297 363 Total Comm 2,378 2,426 2,414 2,499 2,532 Resi Mortgage 1,316 1,214 1,135 1,279 1,427 Resi Constr 328 382 448 695 1,050 Consum / Install 307 153 113 131 142 Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ 2013 2012 2011 2010 2009 ANNUAL LOANS - BY REGION North Georgia 1,240$ 1,364$ 1,426$ 1,689$ 1,884$ Atlanta MSA 1,275 1,250 1,220 1,310 1,435 North Carolina 572 579 597 702 772 Coastal Georgia 423 400 346 335 405 Gainesville MSA 255 261 265 312 390 East Tennessee 280 283 256 256 265 South Carolina 88 - - - - Other (Ind. Auto) 196 38 - - - Total Loans 4,329$ 4,175$ 4,110$ 4,604$ 5,151$ $ in millions

38 Non - GAAP Reconciliation Tables 1Q14 4Q13 3Q13 2Q13 1Q13 CORE FEE REVENUE Core fee revenue 11,930$ 13,219$ 13,966$ 14,063$ 12,618$ Securities gains, net 217 70 - - 116 Gains from sales of low income housing tax credits - - - 468 - BOLI death benefit gain - - 86 1,366 - Mark to market on deferred compensation plan assets 29 230 173 46 177 Fee revenue (GAAP) 12,176$ 13,519$ 14,225$ 15,943$ 12,911$ CORE OPERATING EXPENSE Core operating expense 38,749$ 41,193$ 39,325$ 42,067$ 40,900$ Foreclosed property expense 116 191 194 5,151 2,333 Severance 156 - 405 1,559 360 Mark to market on deferred compensation plan liability 29 230 173 46 177 Operating expense (GAAP) 39,050$ 41,614$ 40,097$ 48,823$ 43,770$ TANGIBLE COMMON EQUITY AND TANGIBLE EQUITY TO TANGIBLE ASSETS Tangible common equity to tangible assets 9.22 % 8.99 % 9.02 % 6.30 % 5.66 % Effect of preferred equity .28 2.60 2.74 2.83 2.87 Tangible equity to tangible assets 9.50 11.59 11.76 9.13 8.53 Effect of goodwill and other intangibles .02 .03 .04 .06 .07 Equity to assets (GAAP) 9.52 % 11.62 % 11.80 % 9.19 % 8.60 % TANGIBLE COMMON EQUITY TO RISK-WEIGHTED ASSETS Tangible common equity to risk-weighted assets 13.57 % 13.17 % 13.34 % 13.16 % 8.45 % Effect of preferred equity - 2.38 4.01 4.11 4.22 Tangible equity to risk weighted assets 13.57 15.55 17.35 17.27 12.67 Effect of deferred tax limitation (3.91) (4.25) (4.72) (4.99) - Effect of other comprehensive income .36 .39 .49 .29 .49 Effect of trust preferred 1.03 1.04 1.09 1.11 1.15 Tier I capital ratio (Regulatory) 11.05 % 12.73 % 14.21 % 13.68 % 14.31 % Operating Earnings to GAAP Earnings Reconciliation $ in millions